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  1. #1
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    Alarming Economic Forcast

    Bill Gross: "Normal" Economic Growth Impossible Now

    By Terry Weiss Money Morning

    Legendary market maven Bill Gross, the so-called "King of Bonds," said investors will flat-out lose money if they continue employing the "buy and hold" strategies of the past.

    In his August Investment Outlook, Gross told investors that "financial repression, QEs of all sorts and sizes" and low interest rates will "dominate the timescape" for decades, maybe longer.

    Investors must adjust to the new world order to avoid being the loser in this zero-growth environment, Gross warned.

    Ultimately, Gross said, the stock market's historical, inflation-adjusted 6.6% annual growth rate is unsustainable.

    Gross, of course, is a bond man.

    In March, he launched an ETF version of his popular Pimco Total Return Fund (PTTRX) - the world's biggest mutual fund, with more than $260 billion in assets. The Pimco Total Return ETF (NYSE: BOND) quickly attracted $2.1 billion in total deposits and has outpaced the S&P 500 by more than 5% so far.

    But even bonds - both government-backed and corporate - can't escape the realities of a no-growth economy.

    According to global economic trend forecaster Chris Martenson, a former VP of a Fortune 300 company, the historical growth rates investors have come to expect - in every asset class - are no longer mathematically possible.

    "Right now, there are dangerous economic constraints," he said, "mainly created by failed government policies, which show exponential growth in our markets is impossible."

    Martenson's analysis is gaining widespread attention this month, after appearing in a newly released documentary that went viral in July. ("Conquer the Pyramid," produced by an Emmy Award-winning director, premiered online July 14, 2012.)

    Martenson and a team of scientists, economists, and geopolitical analysts recently conducted a thorough investigation into the sustainability of exponential growth. They're findings revealed a startling pattern.

    This pattern, Martenson says, shows that not only is market growth unsustainable - but a crash is imminent.
    How will this "pattern" affect your way of life? What steps can you take to protect yourself? Click here to find out.
    "It's a catastrophic pattern in the markets," Martenson said, "one we believe could soon hasten an economic collapse - a chain of events that could lead to massive inflation, the swift fall of the dollar, and a total halt to the way we currently live our lives."

    The mysterious pattern was so alarming, according to Martenson, the team presented their research to the United Nations, 16 world governments, and to Fortune 500 companies.

    They've concluded this catastrophic pattern is not limited to the stock market... Click here to enlarge


    The Harsh Realities Regarding Your Future Way Of Life

    "We found the same catastrophic pattern in our energy, food, water and economic systems," Martenson said. "And these systems could all implode at the same time. Food, water, energy, money. Everything."

    The pattern Martenson identified affects the entire global economic system. It's eerily similar, he explains, to the kind of pattern you see in a pyramid scheme, one that escalates exponentially before it collapses - with little notice.

    You can see it clearly, he said, by just looking at America's total market debt.

    "For 30 years - from the 1940s through the 1970s - our total credit market debt was moderate and entirely reasonable," Martenson said. "But then in seven years, from 1970 to 1977, it quickly doubled. And then it doubled again in seven more years. Then five years to double a third time. And then it doubled two more times after that.

    "Where we were sitting at a total credit market debt that was 158% larger than our GDP in the early 1940s... By 2011 that figure was 357%."

    The problem with this, Martenson said, is that, just like the stock market, this kind of exponential growth cannot be sustained.

    "It's a very dangerous exponential growth curve," added Martenson, "one that's setting us up for a situation worse than we've seen in Greece and across Europe." Do these charts and graphs prove that the Obama Administrationís current economic path is headed for disaster?
    Dr. Kent Moors, an adviser to 16 world governments on energy issues as well as a member of two U.S. State Department task forces on energy, agrees.

    He said this pattern can be seen in global energy systems as well, all of which are inextricably interconnected with the markets and the global economy.

    "At first, the pattern is almost impossible to perceive. Everything looks fine, just like in every pyramid scheme. Yet the insidious growth of the virus keeps doubling in size, over and over again - in shorter and shorter periods of time - until it hits unsustainable levels. And it collapses the system."

    "We are on the cusp on an energy shock like we've never experienced," Dr. Moors added.

    While the fallout from all of this will be truly frightening, Martenson's investigative documentary gives hope.

    "If people think these issues will solve themselves nice and smoothly, they're in for a rude awakening," Martenson said. "But if you plan accordingly, you could come out ahead."


    http://moneymorning.com/ob/bill-gros...mpossible-now/

  2. #2
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    So the world is coming to an end?

    Stage 2 or 2.5 E9X M3 S65 V8 supercharger kit for sale
    : http://www.boostaddict.com/showthrea...r-kit-for-sale

  3. #3
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    Click here to enlarge Originally Posted by Sticky Click here to enlarge
    So the world is coming to an end?
    Well I wouldn't go that far but there is a lot of evidence that suggests the traditional long hold investing model is no longer sustainable and those who do not recognize it will lose big time. I've looked at lots of data supporting this and other new ideas and I have to say from my background in trading, that it's making a lot of sense considering the global markets and the impact they are having here domestically. I'm just glad I have cash in the bank so I don't really have to worry about this and neither do my children or their children. With that being said, I think we are all in for a rough ride in the years to come.

  4. #4
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    I hold physical assets so if the ride gets rough, I think I can survive.

    Luke you should talk to me sooner rather than later time is getting close and it's now or never.

    Stage 2 or 2.5 E9X M3 S65 V8 supercharger kit for sale
    : http://www.boostaddict.com/showthrea...r-kit-for-sale

  5. #5
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    Click here to enlarge Originally Posted by Sticky Click here to enlarge
    I hold physical assets so if the ride gets rough, I think I can survive.

    Luke you should talk to me sooner rather than later time is getting close and it's now or never.
    I hit you later today.

  6. #6
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    Get guns.
    Some people live long, meaningful lives.

    Other people eat shit and die.

    I'm not racist, I hate everybody equally; especially fat people.


    Click here to enlarge

  7. #7
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    Click here to enlarge Originally Posted by DBFIU Click here to enlarge
    Get guns.
    Have plenty already only thing that is missing is a Mini Gun Click here to enlarge

  8. #8
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    Its a different world with a different economy and job market, it will be very tough for anyone 25 and under for the next ~20 to 30 years. Companies have leaned out forever, banks are not giving away loans and investment opportunities essentially no longer exist. The one who has it best right now isthr one who has a ton of cash laying around and can buy real estate for cheap and can afford to wait a long time, everyone else is in a $#@!ter. Harsh reality but it is reality...

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