Introducing the latest bubble about to burst: The Money Bubble

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Glenn has been warning for some time that our current system is unsustainable and simply cannot last. Today Glenn saw a chart that should strike fear into every American citizen. It shows the latest bubble that appears to be approaching the moment where it will burst — the money bubble.

On Sunday, USA Today published a article by John Maxfield from The Motley Fool, featuring a terrifying chart showing the internet bubble, the housing bubble, and an unnamed bubble that Maxfield said was being called a stock market bubble.


Now, Maxfield’s article doesn’t say there is a stock market bubble happening in the United States. He explains, “the fact that the Fed’s monetary policies have caused stock prices to soar, doesn’t mean there’s a bubble.”  He does say, however, that they will most likely deflate as part of an overall correction.

Now, why does Glenn think the above chart is so important?

“I’m not sure if the stock market bubble and the money bubble will be exactly the same, but I think they are. It’s being propped up by bogus money. You are borrowing money from the Fed at zero interest rates, and that money is worthless. It’s not backed up by anything. And when we really do hit the money bubble, we’re out. We’re out.”

“I wanted to show this to you, because for those of you listening to me for a long period of time, you know I’m wrong on timing. I’m always wrong on timing, but I’m not wrong usually in direction,” Glenn said.

Later in the show, Glenn pulled out the transcript from March 2008 when he was on Headline News where he described how “the money bubble” would come about and collapse.

“If you see what was in USA Today, you will see that they are now talking about the money bubble. We built a bigger bubble than that housing bubble in 2008. Remember when we said if we don’t fix this, this will get much, much worse? And when it gets much worse, when it finally pops, what do we do as a people?” Glenn asked.

Way back in 2008, Glenn warned that the policy of the Federal Reserve could result in a “money bubble”. The transcript from that segment is below via

BECK: Welcome to the real story. I want you to look at your newspaper today and you will see all kinds of headlines in there trumpeting the great news that home sales were unexpectedly higher in February. Hey, that`s great, until you start looking under the hood of those headlines, you`ll find a very different story. Yes, sales were up slightly in February, but they were down nearly 24% from last year. And prices, which are now just a little more important are now down 11% from last year, biggest drop in the history of the S & P index. I know, details, details, shut up guy on TV.

The Dow now was up another 180 points yesterday, nearly 8% in the last nine trading days alone. I mean, that`s great. Everybody`s happy, what recession? If I may introduce you, one more time, I`m sorry to do this to Mr. Gloomy Pants. The real story is that we are now witnessing the birth of our next bubble. Just like communists, financial bubbles don`t ever go away, they just change their look.

The internet bubble shaped, shifted into the housing bubble and then the housing bubble has now shifted into something, I`m officially declaring, the nanny state money bubble. For the last few years, America has been, if I may, on a Las Vegas binge. Wall Street would be, were like out with hookers every night, Main Street doing blow and eating caviar off of somebody`s belly and then the bill claim and we just handed over our credit card. You take American Express? Then the party ended and the bills started to come in. And you know, we didn`t go home because the bill collectors were waiting for us at the front door. We just stood there in the bar and now we`re holding our hands out.

You know, looking, hey, Paris Hilton, she by the way in this analogy is playing the federal government, Paris Hilton, you`ll cover us right? Well, for now, Paris Hilton is happy to do that. She is cutting rates. She is bailing out company. She is printing out money in the basement, anything to make us all forget that the open bar is now over. But sooner or later, we`re all going to realize, wait a minute, Paris Hilton is not only unemployed, but her credit is actually worse than ours is. She doesn`t have any cash and more importantly, she has no ability to earn any cash. She`s been paying our tab by borrowing money, in fact, Paris Hilton, I believe, is the perfect analogy for this economy, neither have any real substance and both look far better in night vision, I`m just saying.

Bruce Bartlett this is former U.S. treasury official. Bruce, you`re kind of regretting coming on this program after I just equated the economy to Paris Hilton.


BECK: The federal government, aren`t you? You can be honest. That`s OK.

Bruce, tell me, the Fed is printing money, dumping money, the government is. Everybody is doing this. The stimulus package. They`re now looking for more, they`re bailing out companies and now they want to bail out borrowers. How do you — this is bogus. What`s happening here is bogus money. There`s no real creation of anything here except debt.

BARTLETT: Look, the Federal Reserve, basically, is responsible for all of these bubbles and credit cycles, whatever you want to call them because it always overdoes things. You know, when the economy is hurting, it shovels money out any way it possibly can, and then they just keep shoveling more and more because they`re never sure that they`ve done enough because there`s always enormous political pressure to do something. And then eventually, you get inflation, they start to tighten. They always tighten a little too much. And so you`ve always got this boom and bust cycle that basically, I think, comes back to the Federal Reserves` money creation policy.

BECK: Here`s the problem. It seems to me that we are always popping a bubble. And in retrospect, you always go back and go, yes, $900 a share for That wasn`t such a smart idea. It all makes sense after you get past it. How is it that nobody is seeing that the Fed right now is dumping money or shoveling money, as you say, but they`re not paying attention to inflation at all. What they`re doing is going to cause more inflation and then they got a really Sinbad belt tight, you know, tighten the belt on us to the point to where it`s going to hurt the other direction.

BARTLETT: Well, the problem is what the Fed does to the economy always takes — there`s always a lagged effect. What the Fed is doing today will ultimately impact on the economy two years from now. But by then, people will have forgotten that that was the root cause. By then, they`ll talk themselves into believing it`s something else all together. Remember, Alan Greenspan gave his famous irrational exuberance speech about the tech bubble in 1996, but it wasn`t until 2000 that the bubble finally burst.

And in the meantime, people talked themselves into believing it wasn`t really a bubble that it was all real.

BECK: I get it.

BARTLETT: And the same thing in the housing sector.

BECK: I have to tell you, it`s like we`re taking political rufies all the time but we just what? I don`t remember that at all. Bruce, thanks a lot.


  • BigSkyDan

    I think I speak for America when I say *yawn*

    • DJohnson

      You think wrong. You do not speak for me. I can speak for myself. I think Glenn is right. We are in for a world of hurt.

      • BigSkyDan

        I’m don’t disagree with Glenn. Our country is headed for financial ruin. America has to many natural resources though not t bounce back, even if it is in a piecemeal form. Most americans have their heads up their butts though and are living for today. THey could care less what tomorrow brings.

        so many americans today are one hardship away from financial ruin themselves.

        • Monk

          Again, Speak for yourself. YOU DO NOT SPEAK FOR ME. YOU know NOTHING about me or most americans. So speak only for yourself. I do believe Glenn. And you will be one of those begging for food and housing if you do not quit yawning!

        • Monet

          America has already been put into financial ruin, and Beck was Bush’s top cheerleader as Bush drove the train over the cliff.

          • Susan Warwick

            Prove it! I am so sick of Bush bashers. Obama was the one who bailed out all the banks and car industry!

          • Joseph Hamilton

            AIG comes to mind.

          • irieites

            the Bush family destroyed the Reagan revolution, and we are in a mess because of it
            the democrats are insanely stupid
            the only answer is a new political party built upon honor and integrity

          • Anonymous

            Monet<—- knows not that of which it speaks.

            You are either a deliberate liar, a tool spouting talking points and just plain ignorant.

          • Greg Roy

            Monet is a troll. He’s trying to bait people into arguments. If he wasn’t a complete loser and had natual life he’d know Beck cares very little for GW

          • rolex1965

            Moron is more like it…

          • rolex1965

            Let’s blame it on Herbert Hoover

          • Anonymous

            Hoover just happened to be there when the crash came. Our next President may turn out to be another Hoover. That will be the case if we can weather all this obama trauma until 2017, Odds are we wont make it out of his term.

        • Shane Tyler Yorks

          I have to agree, except i don’t see the US bouncing back. While we have resources, we don’t have exports. But you hit the nail on the head when you said that americans don’t care. No matter how hard i try, i can’t convince people to get educated. If america is to fall, it is because too many people got too happy and comfy to see the danger coming that will destroy us.

          • Joseph Hamilton

            Maybe trying a different approach might help, but you
            are on the right track. Ask for guidance from our
            Creator, and then stay tuned, Shane.

          • Robert Potter

            If you want to see the future of the USA then all you have to do is look at the last Massive Republic, The Roman Empire. The senate got corrupt, power was vested in a single person due to an emergency and was never given back. The people lost their voice in government and the corruption cycle got so bad that they eventually were destroyed by in-fighting and external attacks. I say invest in things that will provide you with personal shelter, safety and security. Firearms, food, land that is defensible. I am not saying build a castle but somewhere to run to that is not in a food desert when the grocery stores close can not hurt if you have the capability of aquiring it would hurt. Lastly, to Monet, if you have some constructive ideas we are all ears, if not then please stop badmouthing the ones who are trying to help. Yes Glenn has made mistakes in the past as we all have, let us stop worrying about what is done for the moment and try to think about what is best for our future. Blame and sarcasm can come later after the problems have been resolved.

        • Joseph Hamilton

          To me, our situation is a “planned” false flag
          by those who know that they can’t do anymore
          than scare us into submission. They, the
          global elites, want this geographic part of the
          Earth for their very own. They have no use
          for anyone but their own “chosen”.

      • Anonymous

        Don’t worry about Monet, when the s___ hits the fan he’ll be the first one to kill for a Hersey bar.

        • Your Name Goes Here

          We will finally learn what he would do for a klondike bar. haha

          • zemla

            Lol! Good pop play

        • Greg Roy

          Actually he doesn’t sound tough enouh to kill, but I’d bet he’d service any man for a hershey bar

      • Joseph Hamilton

        Remember, they haven’t played the sanction card.

    • Anonymous

      You speak for pathetic losers who don’t know what personal responsibility really mean.

      • Monet

        No, he’s speaking for America. yawn…….

        Beck has been saying this crap for years, it’s his marketing gimmick to get you to buy the crap he peddles, wake up, chump.

        • rolex1965

          Monet the Moron

    • James

      Yep, you sound like you’re smoking that sheet.

    • Cyndi Comeaux

      You sure don’t speak for me either. Some people need to wake up and apparently you are one of them.

  • Anonymous

    The crash will be on 11/05/214.

    • duh

      no no June 14, 2017 or 09/09/2019….lets just pick a random date

      • zemla

        It’s ok, they said 11/05/214, so it’s over already.

    • Anonymous

      Thanks, I’ll put in for a couple vacation days….
      Seriously, why that day?

      • Anonymous

        Day after Election Day.

  • MammaOcho

    The question is… so, what do we do?!

    • Monet

      Buy Goldline, of course. Sucker.

      • Susan Warwick

        She asked a serious question, and then you call Sucker? You must truly be one unhappy person.

      • rolex1965

        Idiot…Go play at the huffy post…their still blaming Bush….The moron in the White House brainwashed idiots like you….

        • Mike

          Bush was too blame as much as Obama thus far… There is little difference between their two policies. One is just more of the same thing!
          BOTH are hard core progressives unfortunately.

    • James

      Enjoy life :)

    • Suzanne Rice

      Along with solid businesses, I’m also investing in foreign currencies.

    • Anonymous

      Buy Bitcoin

      • zemla

        If you heard about bitcoin on this program then stop advocating it Now. Right now. Beck started talking about bitcoin long after it was time to get into it. And he has a propensity to jump on ever new tech wagon that rolls through town. CC (cryptocurrency) may, MAY, not be bad, but BC is going to get hammered.

        • Anonymous

          Has Glenn Beck advocated for Bitcoin? I haven’t listened to him for several months now, I don’t know. Also, only if attacked by governments will Bitcoin get hammered. There is a good chance of that, I guess.

    • Anonymous

      Prepare for the worst. Build a reserve of food to last 3 years at least. Build a veggie garden, prepare the ground, learn to can & store food. Most of all though, get to know the voice of Jesus because no-one will survive the next decade without Him! Everything He said to watch for immediately before His return is in the news every week now – see Matt ch 24, Luke 21, Mark 13 – He is the only hope that any of us have.

      • Anonymous

        We find out that all we need is Jesus, when all we have is Jesus. Actually my wonderful pastor said this just Sunday.

        • Anonymous

          I heard this recently too – reportedly from a christian pastor in what used to be western Iraq! God’s best to you & yours.

        • Mike

          if you are Christian…. but didn’t Christ say something like, “God takes care of those who take care of themselves?” Paraphrased from this verse – “If a man will not work, he shall not eat.” 2 Thessalonians 3:10

          @NorthernWatchman – I have to agree. Read history and you will learn what to do. The Weimar Republic is a good example to see what to do (in my opinion). When the collapse comes, systems will breakdown for up to 18 months.
          I like this one better, “The only thing to fear is “not preparing”. I think I heard Beck say that in the past but it is true I think.
          I plan but only as a hedge and only in ways that the resource is not lost if I am wrong. For example, food stores are NEVER lost if you rotate….
          @Melissasmom – it will be people and families like me and Northernwatchman hat help families that do not prepare and you will be saying things like, “jesus” provided for me because I did not hear him telling me prepare for myself, family and neighbors.
          Let me put it another way – Did Noah prepare or just say that “God will save me and my family”?
          For he Record – I am Athiest (Buddhist) but I grew up in a Christian home.

          • Maury Tucker

            “God helps those who help themselves” is not in the Bible. I will say this though…Jesus saves but Moses invests.

          • Anonymous

            Ben Franklin

          • Ronald C Moore

            In the Noah scenario, everyone that didn’t prepare, perished.

          • melissasmom

            Always be prepared for an emergency. So right about food. I think your quote was more about – everyone contributes.

      • Ronald Barbour

        My Plan “A” for the coming economic collapse is 1. Taking an elevator on the tallest building in town to the roof. 2. Look for a deserted alley. 3. Jump. Seriously. I’m too old and poor to survive the Great Depression 2.0…I would use a gun, but I can’t afford one on my small pension.

        • Anonymous

          Ron, that is a sad plan man! It will not keep you from pain, only ensure that your torment lasts forever. I too live on a small pension – survived a massive heart attack by the grace of God. His plan for you is that you live forever with Him in His kingdom where there is no lack, no fear, no pain, no tears only joy unspeakable that never ends. I recommend that you use some of the time you have available to get to know Jesus personaly – read His book. Start with the personal accounts of His life – where He went, what He said, what He did, etc – in the gospels: Matthew, Mark, Luke and John. In my experience, His plan for us is always better than our own.

        • Mike

          Ron – Better plan is to get 6 months of food stores (My mother even did this as she thought – “what is the harm if wrong” -Se is 73) and move 15-20 % total savings into physical god silver and you should be fine. If it does not happen then you can share the food and the Gold/Silver can go to whom you want tax free! <- MUCH better plan!

        • ShootsAlongWay

          I’ve got enough for a small army. You are welcome to come to my house, and arm yourself! Also, I have plenty of Deer, Turkey, Geese, Duck, Squirrel, Rabbit, and a nice pond on my property. Seed hoarding is next!!

  • Fernando Trejo

    I have been watching and my family and I started buying silver coins so when this happens we’ll have something worth something. Not dollars or stocks. Real Money.

    • Max TheManiac Goliger

      I laughed at this comment, gold is hyper inflated as well as silver; not to mention your adjusted purchase price is probably substantialy higher than current market price due to the arbitration collected by whoever you both the bullion from. If you want something of value buy copper lead iron and aluminum. On an entirely different point, anyone valuing the market on a chart should be shot for their stupidity; a chart doesn’t determine the value of anything and the practice of charting on Wallstreet has been shunned since the 60’s as real valuation techniques appeared. Even if you think a chart has any validity of what the market is worth it would point to it being under valued as evident by what in technical analysis is called a Double Bottom Bounce Continuation Breakout(thus giving the market a fair valuation around 2400). Do I believe America in general is loosing it’s economical leadership and currency valuation, yes, but not based on some stupid chart.

      • Max TheManiac Goliger

        Episode 8 – Double Bottom Chart Patterns – Tradin…:

      • Mike

        I know a TON of people who make a TON of money in the market using Charts! Maybe it does not determine value but Fernando did not say that in his post.
        I am not sure where you get that Gold and Silver is hyper inflated….
        Based against most anything in existence, it is UNDER Inflated at this particular time It has not come even close to normal inflation index growth.
        If you think that the currencies of the World are going to survive then you are welcome too but history tells a different story!
        Good luck!!

        • Anonymous

          Gold and silver are manipulated down in price, the money creators can’t have dumb people come to the conclusion their paper is worthless by seeing gold and silver prices go up.

      • Fernando Trejo

        Just look at the 16 countries that have dropped the dollar as of today. They are basing their monetary value on silver and gold. At least I’ll have something tangible when the dollar crashes and I’m having to trade my silver coins for goods or supplies. I’m debt free, I have no mortgage or financial obligations. And not because I’m rich. But, because make sound business decisions. I make my own decisions as to where I spend my money and my choice is silver and gold. What about you Max?

      • Anonymous

        How do you account for silver holding value? In 1964 my dad bought gas at 25 cents a gallon, I can still buy a gallon of gas for even less, but it has to be 2 silver dimes. That’s not from a chart, that’s reality. Our money is being devalued, so what would you recommend to invest in?

    • Anonymous

      I’m a contrarian. All of these people said to buy gold and silver and what has happened- they’ve gone done. The problem with commondies, and everything really, is that pricing pressure to go up based on a weaker dollar is countered by pressure down based on record debt, both government and personal. That is why we have not seen a huge rise in inflation. The top 1% have all of this extra money, but they can’t drive inflation themselves. Hyper-inflation won’t happen until the government starts doling out significant money to everyone.

      • Anonymous

        Inflation starts going up when the velocity of money speeds up. You don’t call 85 billion a month, as the Fed is pumping into the system, a problem?

      • Anonymous

        Question is, if things got really bad how are you going to “spend” that gold and silver for things you need? You going to cut a piece off a gold coin to buy some groceries? Even silver is a hoax, in my humble opinion if you want something to use to trade for something you need own physical things (other than metal) that you can trade for food, fuel, etc.

  • Chintana Ohl

    It’s coming, the others country like India, China ,Germany ,etc already moving away from U.S Dollars.

    • Mike

      AND….. hoarding Gold.
      Even Mexico is talking about going back on the Silver standard!

    • srsanbo

      Look for Russia, China, Germany and maybe India to develop another currency backed by gold (at least fractionally). See what happens to our economy when nobody wants dollars anymore, particularly the nations from which we get most of our oil.

      • Anonymous

        We get most of our oil from us.

  • Bob P

    For what its worth.. A friend of a Friend is a bank examiner. He said last month that there are a lot of banks in really bad shape still.. and he expected another bank crisis in 15 months.

  • Anonymous

    Buy Bitcoin.

  • Anonymous

    Glenn is absolutely right. The eccomonic colapse that is coming upon this world is unlike anything that has come before. Silver and gold will not be worth much for very long after the currency colapses – when there is no food to eat, no clean water to drink people will throw their silver and gold away rather than give it to the government (who will demand it). FDR made it illegal for individuals to own gold once before so the precendent has been set for gov confiscation. You would be wiser to store up food in reserve – enough for yoursef for several years and extra to share with those you love who will not pepare themselves. A lot of people think it is coming this year, I am hoping God will give us one more year to prepare so I am preparing for the crash to come next fall at the end of the next shemita year. Prepare accordingly.

  • Peter G.

    This may happen but Glen is a bomb thrower selling gold coins from his crooked advertisers. Why do you think Fox threw him off too many sketchy connections.

    • Robert Potter

      Actually Fox did not fire him, he quit because he was tired of being pressured to stop reporting what he was reporting. At least that was the statements that were made at the time from Glenn and from Fox. BTW if he was fired there is no way that he would still be showing up as a guest on Bill O’Riley’s show periodically.

      • Anonymous

        Nonsense. FOX kindly offered Beck a soft landing because advertisers were fleeing his show because of his controversial statements.

        • Robert Potter

          Of course – That is why they were pressuring him to stop the controversy was due to advertiser dissent. But he handled that problem by getting a whole new crop of advertisers for his own network so he could state what he sees as right without anyone else telling him not to. So in the end whether you call it a firing or a quitting, he ended up much better off, so good for Glenn and a loss for FOX either way.

          • Anonymous

            Maybe. While I commend Beck’s risk taking, there’s no way to know the Blaze’s financial success since it’s not public. Glenn’s did say to the camera, “I’ve written my last check, it’s in God’s hands now”, which didn’t sound promising, but was probably just drama. If he really wrote his last check, he wouldn’t be buying $350,000 flags.

          • irieites

            he has his personal wealth separate from his business assets

            I do not listen to Glenn much any more, but I did hear that comment and came to the same conclusion

  • Chuck Tripp

    Seems to happen on a 7 year cycle, 1973 oil embargo, – 1980 High inflation, interests rates & unemployment, – 1987 Black Monday highest single day percentage drop in the market, – 1994 minor recession & bond adjustment – 2001 Sept 11th and the corresponding market drop – 2008 the housing bubble and it’s effect on the entire economy -2015??? I understand that there are many individual reasons but doesn’t it seem like a pattern?

    • David Owens

      7 is a pretty special number.

    • Mike

      good analogy.
      What happened in 1966? If nothing then why not? In other words, what changed since before 1973 to start causing the 7 year cycle?

      • Susan Galloway

        The country’s monetary sytem was taken off the gold standard in 1971. That is what happened. We now have a Fiat monetary system. It is backed by nothing.

    • bobinmichigan

      There is a pattern, based on the Jewish Shemitah 7 year cycle that God commanded. Wiping away debts at the end of each 7 years. And guess when the Shemitah year ended, 2001 in Sept, 2008 in Sept, and the next one in 2015 in Sept. The dates are even more precise than this. Check out Johnatahn Cahn’s teaching on the Shemitah.

  • latxfree

    Nope he is right on target. I see people’s credit reports and I can always tell by the cycle of their credit. There is NO WAY people can keep paying more for groceries, utilities, housing, gas you name it at the same pay and survive. They are living on debt. I see it daily. I know people hate to hear all this and fear it but we must get our heads out of the sand!! Things are BAD, BAD, BAD!!!

  • Anonymous

    Duh. The Fed money party on Wallstreet has to wind down sometime. Bernanke signaled a reduction in bond buying since just before Yellen was appointed, then Yellen signaled she’s reducing. You don’t need a crystal ball, Glenn. The question is whether the economy can support a smooth descent. I think global competition is the main middle class problem and the economy will have a difficult time as long as Chinese and Indians are doing American jobs. I also totally disagree with Beck’s efforts to derail Common Core. I don’t understand how he thinks establishing standards that compete globally are detrimental to our kids. I’ve looked closely at the math standard, and it’s very good from what I can tell. Bottom line – if this country doesn’t elevate to higher education standards, we will NOT COMPETE globally and our standard of living will suffer.

    • zemla

      Typically you get slammed on here but you make an excellent point, “global competition”. When you’re “top dog” for a while you forget that the other dogs will eventually grow up too, now there are more dogs fighting for much the same meat. There, I translated your point into more palatable terms for the environment.

      • Anonymous

        Thanks. I think Beck’s anger about Common Core is misplaced. He should be angry that America’s slipped way down on global education rankings, which spells danger for our economy, lifestyle and foreign investment in the US.

        • BlueMN

          If you recall the clips of him with Mike Rowe, Beck is an anti-intellectual along the lines of “The world needs ditch diggers too!” He’s not interested in your Big Gubbermint higher standards.

  • Anonymous

    What to do is to be aware of what’s going on around us so when the bubble bursts, whenever it is, we have given it some thought. We don’t need a perfect plan, we just can’t be blindsided. Then it will be up to folks, that are willing to entertain the idea and possibility that our economy can crash, that will need to educate the rest what to do. We will need to resist a dictatorship, or any new form of government, at all costs. History teaches us, that what follows a collapse is a dictator that promises the masses things they can’t deliver, to gain power. That’s the scariest part. If we resist that, we do have ample natural resources to bounce back. We do need a reset, when 40% of the county approves of our government and were in this mess, then we have 40% at least that are totally oblivious and will push for government control today. They only need 11% more and we’re in trouble. Then, yes buy some gold and silver, and yes buy more food than you can eat in a week. Stock up on clothes and necessities, but all of that might be stolen or lost in an instant. So just educate yourself, keep your eyes open and your head on a swivel. Its likely going to get much worse before it gets better. And if your not already in one, go and join a Church, Christ will pull his people through this and a worst case is always eternal life in heaven. All it takes for evil to prevail is good folks to do nothing.

    Then this isn’t a Bush or Obama problem, the train left the station Trillions of $ ago. Once an economy that collects about 1.4 Trillion a year in income taxes borrows more than 2 trillion its past the point of no return. Ask any banker. They won’t loan more than a 60% debt to income ratio which means if The USA was a business and wanted to borrow money it could only borrow eight hundred forty billion and be able to pay it back in 30 years. We owe over 20 times our healthy debt amount, not to mention what we’ve printed or our unfunded liabilites. (Let’s make sure everyone knows we now have about 4 times more money in circulation than we did in 2007, so common sense tells us everything will have to cost quadruple once that printed money makes it into the economy.) I’m not an economist but i did play Monopoly at a Holiday Inn a time or too. So anyone who thinks we can raise taxes on the wealthy and wiggle out of this mess can’t do simple math. We can pay the entire GDP of our county towards our operating budget and our debt and still never pay it off, NEVER. So, though I firmly believe Obama is a post turtle, I also believe he is on the Cloward and Piven program to speed up the freight train of collapse for the folks that put him in power so they can try and insert a dictator after the collapse. I really don’t think the dictator they try and insert will be Obama, but it may be. What we have to do is educate our friends and everyone we can, when the time comes, to prevent them from being successful and always vote for our existing form of government with less government control, not more. Make sure everyone understands what a Trillion means. It’s what comes after 999 Billion, 999 million, 999 thousand 999 +1. And it takes about 32,000 years for a (1) Trillion seconds to click by. And we owe almost 18 Trillion to who?? And when is it due? For Glen and all the others predicting this collapse, it’s easy to predict it, predicting when is the hard part.

  • Joseph Hamilton

    I have to ask myself, in such a computerized (electronic)
    society, why are the major banking institutions constructing
    such large financial buildings? How much space does a
    “bit” take up? Just wondering what else is being stored in
    these buildings.

    • Audit Ninja

      More laws/regulations require more employees are needed to perform compliance activities. This also requires better infrastructure thus, changes to IT, security, etc; These companies grow their staffs because they need those people to comply with the laws they are bound to.

  • Jasper

    I like Glenn, but he’s dead wrong on the “money bubble”. Yes. The Fed has inflated the money supply by 350% since the 2008 crisis, but why don’t we see this tremendous inflation in the price of consumer goods? Based on this goods should be 3.5 times more expensive than in 2008; they’re not. Why? Because the Federal Reserve does not ‘contribute’ to most of the money supply.

    The real answer: Banks produce the most money and it’s not even close. In the US, banks account for approximately 83% of the money supply with the Fed around 17%… in 2008 it was Banks 91% – Fed 9%.

    Divisia M4 (the aggregate measure of money) shows there is very little inflation (of the money supply) and in some spots deflation over the past several years. So why no major price increase, because banks are deleveraging, i.e. Dodd-Frank and Basel III require banks to hold more money on their balance sheets.. that means less loans made and less money in the economy.

    The Fed is responding to the government (national and foreign) malfeasance imposing their will on bank lending practices.

    I source Steve Hanke, economics professor at Johns Hopkins and a fellow at Cato Institute.

    • rickroland

      The banks are part of the Federal Reserve System, it is the Federal Reserve system and the attendant income tax fraud that are the problem.

      • Jasper

        When I write Fed – I refer to the Central Bank, which produces ‘state money’. Banks, true, are part of the Federal Reserve System, but they cannot produce ‘state money'; they can only produce ‘bank money’, which are not state-run.

        Income tax fraud, though a problem, is unrelated to “money bubbles” and has little effect on the money supply.

    • Anonymous

      Government statistics may say inflation has not risen proportionately, but those of us buying gas and groceries can tell you that things have at least doubled, if not more, in the last six years.

      • Jasper

        Divisia M4 is not a government-produced number, but is done by the Center for Financial Stability — an independent, nonpartisan, and nonprofit think tank focused on financial markets for the benefit of investors, officials, and the public. (their language)

        As far as your daily goods — the inflationary price (not a result of an inflationary money supply) you see is a mostly due to an unfavorable exchange rate for the $US; because we compete globally for oil and other commodities, it takes more $US to buy commodities, which trickles down to your daily purchases. In addition to other govt regs that artificially inflate goods for the benefit of crony capitalists to the detriment of the general public.

        If the money supplied doubled, my $100,000 house would be worth $200,000…. in fact there would be another housing boom, because people would be looking to pocket the capital gains.

        • Anonymous

          If the money supply doubled your $100,000 home becomes worth $50,000, not $200,000. Economic law – supply and demand. If more money is available it becomes worth less.

          • Jasper

            “$100,000 home becomes worth $50,000…” — correct in real terms, not in nominal (as what inflationary money supply is measured)

            You’re mistaking the value of money in terms of wealth creation/stability. Just because the price of an asset doubles (as a result of an increase in the money supply) does not make me twice as wealthy (or impoverished); the increase of the money supply will result in higher prices across the board (in the aggregate).

            Draw your supply/demand schedule priced at $1.00 and shift the supply curve to the right. You’ll see the price of the $1.00 decrease, but the quantity increase, i.e. it will take more $1.00s to buy a good.

      • Anonymous

        You are absolutely right!!!

    • Anonymous

      Hey, when was the last time you went shopping for groceries? The prices have increased about 3 times what they have been in the recent past. A nice steak was around 4 dollars, now it is around 12 dollars. Same goes for bread,
      potatoes etc. Go shopping and you’ll find out that prices did increase, or the
      contents of boxes and cans have decreased. Most people who live on a budget have noticed the difference and I am one of them.

      • Jasper

        You failed to read all my posts… I never stated daily consumables have not increased in price. I am positing the money supply, as Glenn has been stating, is not the cause of a ‘money bubble’ or the price increases that you see (at the market). If it was, the price of your steak would far exceed $12… and I have yet to see a $9 5lb bag of potatoes.

        Once the cause is correctly identified and agreed upon by the general public can any resolution begin. So far I’ve seen most people incorrectly identify ‘the Fed increasing reserves or “printing money”‘ as the cause.

        I don’t know why Glenn, for all the research he has done, does not know that banks are mostly responsible for changes in the money supply, not the Fed.

  • Anonymous

    I think the progressives (both sides of the aisle) have this planned so that they just continue to get progressive agendas passed because of these emergencies!

  • rickroland

    Our money is based on debt, owed to the Federal Reserve *just because they issue the currency*. That’s the largest and biggest problem with our money, the money bubble or whatever you want to call that, along with lie that is income tax. The combination of the two guarantees that, unless the Federal Reserve System is dismantled, in its entirety, that this boom and bust and economic slavery (which is what this is) of our country will just continue and will *only* get worse.

  • Anonymous

    Things to look out for before the collapse: a slide in the American economy, rising national debt, decline in world trade, banking systems in trouble, industrial output on the decline, inflation followed by hyperinflation, political unrest here at home and in the world. I think most of you will agree that the criteria I mentioned above sounds all too familiar. America and the rest of the world has gone through cycles of instability before..
    And if you think that it is safe to hoard gold or silver think again. Executive order 6102 criminalized the possession of gold and the Federal Reserve confiscated the gold the people in the US owned (1933). So, if the bad guys do not steal it from you, your own government will if they feel like it. It sure does not look good, but predictions are based on probabilities. Looking back in history, we know that the world did go through bad times. After the 1929 stock market crash people here in the US went through a very bad period. Fortunately, wiser minds prevailed and from chaos came again prosperity. We only can hope for the best and pray.

    • Mike

      This EO was recinded in 1973 (I think) by Nixon BUT didn’t Executive order 6102 exempt offshore owned gold? Many keep in a Singapore vault these days.
      How will the bad guys know who has Gold/Silver? Not many do for sure. So if you buy it, keep it in safe and DON’T TALK ABOUT IT! :)
      Did NOAH ONLY PRAY? No…. he planned and prepared!

      A person should PLAN for the worse and HOPE for the best! NEVER just sit and do nothing….. Even Christians don’t believe this at all. The bible says that “If a man will not work, he shall not eat.” 2 Thessalonians 3:10

      I am Buddhist so I believe that if I do right I get right, if I do bad I get bad. In other words, I get back what I put into something…..

      To see what is coming is not rocket science, it is history.


  • Syberlink

    Inflation is already here. Just watch simple items like bread, water, eggs, etc. See how fast those prices go up compared to your pay.

    • Audit Ninja

      Read Jasper’s comments above about divisia M4. He does a good job of explaining the currency/inflationary issues we’re seeing. Long story short, the problem is our exchange rate and the fact that we’re importing too much.

  • ron

    nixon. gold standard. fiat was the beginning of the end.

  • Rick Crowley

    There is something most people can do to avoid losses altogether, but the majority don’t know the right place to look and the banking industry wants to keep the education about awesome retirement vehicles quiet because it means less profit for them. I’ve been showing people safe money strategies for years, and not a single client of mine lost money in 2008. Everyone is always looking for a get-rich-quick option, but wanting to talk about safe, boring, retirement strategies that are guaranteed never to lose money but DO participate in market gains is almost unheard of. Sad.

  • Shawn

    Yeah, let’s stoke the fear of recession and soup lines

  • 2 IT too

    “MONEY, remember, is the original DEVIANT creation.”
    Informed Radio

    And remember, ‘MON’ is Babylonisn for slave —-hence ‘MON—knee’.

    The Valley of Hinnom was where infants and children
    were sacrificed to idols, Hinnom said backward –is MONEY.


  • landofaahs

    Most all of the nations are abandoning the $ as the only currency for international trade. Soon a basket of currencies or perhaps a gold backed currency will take over and that will be the start of the end and it will come quickly. Gems and precious metals are my plan along with a moveable attitude. Babylon the Great is falling.

  • jersey mike

    nothing will ever come to a logical solution until the real problem is addressed: a lb of coffee at 2.99 thats 13 oz goes to a lb of coffee thats now 2.99 thats 11.5 oz. similar for many other things… half gal of ice cream is now a qt and a half at the same price… the REAL PROBLEM is not that anything is going up in price. a 2x4x10 can still buy that now qt and a half of ice cream as it did 20 yrs ago. the problem is the devaluation of our dollar. a corvette in 1964 cost 55oz of gold. a new corvette costs… oz of gold!!! nothings gone up in price, the dollars gone down in value. recognize that, and only then may there be a solution at hand

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