THE PAPER-FUELED ECONOMIES WILL EVENTUALLY CRASH AND BURN. WE NEED TO PREPARE THE POPULATION FOR THE UPCOMING CATACLYSM

Massive paper debts by all the states and most countries, including our $18 trillion debt will eventually asphyxiate the economy.  It is not a matter of if, but rather a matter of when it will happen.  People need to be prepared for the massive tax hikes coming, either on income or on transactions such as the sale of property.  Are you aware that the Obamacare receives most of its funding by imposing a few percentages of tax on the transfer of properties?  This is a significant tax folks.

Already, despite the issuance of trillions of paper money, the world economies are barely growing.  It is simply impossible to create more glut in needless products than we already have.  Our homes are filled with garbage upon garbage of worthless and unimportant stuff: cloths, electronics, machines, and so on.  Most people need another home to warehouse their stuff that do not need.  They spend more time dealing with the management of wasteful and useless gadgets than on anything else.  We are drowning in glut and more glut thanks to our gluttony.

Gross Sees Global Economy Dangerously Close to Deflation

By Sabrina Willmer 31 minutes ago

Bill Gross, money manager at Janus Capital Group Inc., said the global economy is “dangerously close to deflationary growth.”

Once there is a “whiff of deflation, things tend to reverse and go badly,” Gross said Friday in a Bloomberg Radio interview with Tom Keene. Gross pointed to how the CRB Commodity Index isn’t just at a cyclical low, but lower than in 2008 when Lehman Brothers Holdings Inc. went bankrupt.

The commodity markets tell a truer story of what is happening in the economy because they are subject to real-time supply and demand, Gross said. Oil, metals and crops have plunged as China’s economy has decelerated and gluts in multiple markets have further depressed prices.

Gross, who joined Janus in September after abruptly leaving Pacific Investment Management Co., manages the $1.5 billion Janus Global Unconstrained Bond Fund.

He said the Federal Reserve will raise interest rates next month by 25 basis points.

“September is the number for sure,” said Gross, who used to manage the world’s largest bond fund.

The Fed is “mentally committed to moving before year end,” he said, despite the Bank of England’s Monetary Policy Committee this week voting 8-1 to keep its key rate at a record low and talking about changing policy next year.

A move in September is “not unanimous” but is the “majority opinion” now, Gross said. Any increase will likely be 25 to 50 basis points. A 50 basis point move would “scare the market,” he added.