Is The Ponzi Scheme Finally Unraveling?

January 11, 2016, by Ken Jorgustin

The unraveling is coming like a freight train…

The first week of 2016 has been the worst ever (among all new year’s) for ‘Wall Street’.
You listen to the media and they’re blaming China, they’re blaming this and they’re blaming that… The thing is, it’s everything. It’s the ponzi scheme that’s finally unraveling.

We are in a deflationary depressionary cycle that appears to be spreading far and wide.

Just about everywhere you look, the data is pointing towards an unraveling of the ‘propped up’ economy. The DOW has lost more than 1,300 points in the past 7 trading days. Is reality finally setting in? Will further ponzi intervention successfully buy us some more time? I don’t know. But what I do know is that when the tide finally turns for real, there’s no holding it back. Impossible…


I recently heard that trucking companies are buying fewer vehicles due to diminishing demand for hauling freight. That’s for both retail and raw materials transportation. Heavy duty truck orders plunged nearly 37% in December. Dealers are stuck with more than 57,000 unsold trucks.

We all know that the price of oil is still falling. Although seemingly good for you and I (gas prices), it is a reflection of much deeper issues (slow and/or negative worldwide growth). Has anyone considered the potential derivatives exposure/damage as a result? How close are we to a trigger point in that regard? Can you say, ‘chain reaction’?

Retail sales of the last quarter were apparently a disaster. ‘Black Friday’ sales and subsequent ‘shopping’ were dismal (no surprise from me…). Major department chain stores are laying off thousands (no surprise there…).

Even George Soros just said (not that I respect this monster…), “When I look at the financial markets, there is a serious challenge which reminds me of the crisis we had in 2008.”

I recently read an article, “Fed Official Confesses Fed Rigged Stock Market – Crash Certain” which further exemplifies our dire-straits. An interview with Richard Fisher, former president and CEO of the Federal Reserve Bank of Dallas, gave what may be the biggest confession you’ll ever see and hear from a Federal Reserve insider: the Federal Reserve knowingly “front ran” the US stock market recovery (i.e., manipulated the market) and created a huge asset bubble. Fisher expresses certainty that the “juiced” stock market will come down and is coming down now that the Fed has taken its foot off the accelerator.

Fisher Quotes from CNBC interview:

What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.

Basically, we had a tremendous rally, and I think there’s a great digestive period that is likely to take place now…

We front-loaded at the Federal Reserve an enormous rally in order to accomplish a wealth effect.

I wouldn’t blame [what is happening in the market’s now] on China. We’re always looking for excuses.

A lot of people are building cash positions…. Those [investors] that are taking a longer term view are being extremely cautious here, are raising their cash levels, are nervous about the valuations that are in the market.

The values are very richly priced here, so I could see significant downside.

Note: It’s not a surprise to me since the manipulation has been ongoing and hiding in plain site for those who peeled back the onion for a look…

Today’s Headlines:

Peter Schiff: This Bubble is Bigger than the Previous Two Combined
ALERT! Stock Market Technical Breakdown May Lead To Total Meltdown – Gregory Mannarino
The Global Economy Has Come To A Screeching Halt, Collapse Inevitable
“Fasten Your Seatbelts” – UBS Warns Of “Record Spikes In Volatility”
2016 – The Year Of Panic?
Financial Avalanche Will Bury Most

The trend is in place, and it doesn’t look good. It is accelerating. Commodity numbers, data, purchasing indexes, import, export, one after another… it’s going down.

For many I’m ‘preaching to the choir’. With that said, the situation is worth renewed consideration given the haste at which the downturn has accelerated as we enter this new year.

Other trends for 2016 which I’ve recently heard from Gerald Celente (Trends Research)…

Economic patriotism.
Self sustainability.
Make our own ‘stuff’.
Bring the jobs home.

What is economic patriotism? I didn’t hear Gerald explain it, but I would say that it’s being your own banker. Minimizing or eliminating altogether your exposure to the current financial system. Setting yourself up for success by converting Fiat paper currency to practical tangible assets that will assist towards your own self sustainability.

Will we ever ‘make our own stuff’ again as a nation? Will we ever ‘bring the jobs home’? It sure does not look like it. But it could happen, one small business at a time… (the big corps and mega-corps are lost causes).

What do you think? Is the crash accelerating? Will ‘they’ be able to put the brakes on? Will mainstream trends actually turn towards self-sustainability?