By John Galt
September 21, 2011 – 18:30 ET
The battle of demographics, logic, and incompetence within the great American economic model is about to come to a head. The aging population with demands on the government for social programs and aid versus the younger, less educated, quasi-Marxist believers are incapable by and large of supporting the elderly, much less themselves. The United States government has demonstrated total incompetence doing the very basic function of balancing the budget and as a result, while wars rage around the world we are so broke, the nation is laying off members of the military. Lastly the financial system fraud has finally come home to roost as the banksters have decided to turn their backs on the government and the nation and focus on their overseas operations where there are fresh sheep to shear while the Amerifools wander their television wasteland without even asking one basic question:
Why haven’t we seen over 1000 bank and financial corporation officers and managers shipped off to Attica at a minimum, Guantanamo Bay if the masses had their way?
So here we are after feint efforts to reassure the sheeple that the system is under control. That there is no possible way it could ever crash again. The brilliance of the people who created the disasters from 1997 to 2009 have leaner their lesson (again) and have a full understanding of the action necessary to save our nation and keep their jobs for years to come. But in the end, it is now game over.
Europe is about to collapse and burn.
The Middle East and Islamic world is about to erupt into a massive war from MENA to Thailand, and the Balkans,Turkey,and much of Central Asia.
Mexico is a basket case without a basket to sleep in.
Brazil is the most over rated and overheated economy in this hemisphere with an absurd poverty rate to this day.
China has discovered that financial fraud is rampant and now is deciding between the firing squad to resolve the issue or the gulags.
And Russia, well, that’s Mexico on Vodka.
With that established the charts now indicate the crash of ages, has begun. This move could retest S&P 1,000 easily, 840 more than likely, and if it violates the 666 March 2009 low, then the next stop is in the high 300’s.
The Dow? Well, after they remove the shattered remains of former components it could settle nicely around 6,000 or take a trip down memory lane and retest the 1987 highs.
Gold is destined to fall, hold, then turn around as the Fed realize that offering Lewinsky’s to the dollar does nothing and the blue dress is eventually exposed. Look for gold to fall, the Fed to panic and hyperinflate, and all hell to break loose next year. The course of action selected today is ineffective, impotent, and ignorant which means that the final solution, a total, complete commitment to printing until the cows, calves, bulls, steers, and reindeer all come home is their last bullet.
And they will have to use that bullet by Q2 2012.
Here are the charts in all their horror and glory and click on each image to enlarge/reduce in size….