Printing money.....................

I received an email today from a friend of mine that I wanted to share. He has built up significant credibility with me, by continually providing accurate predictions of the Stock Market.  He researches the trends of the market on a daily basis, and has been dead on in everything he has passed to me. I wouldn't call him an expert, but he understands all of this better than anyone else I know.

His email was in response to a poll I sent him. The poll showed that 86% of respondants believe the government will continue printing money, until it's too late to recover. Here is what he told me in response:

As you know, we cannot print our way out of this, somehow the "powers" at large think this is possible, but what's the end game? All of a sudden we'll be back to prosperity, and we'll do the honorable thing, which is to pay the money back......it will never happen. We're over 60 Trillion dollars in the hole, the interest alone will bury us, as a matter of fact, this year marks the year in which, we can no longer afford to even pay the interest on the debt.......at that point, the IMF is suppose to come in and shut us down, deeming us BANKRUPT!

I read an article the other day, which said our debt alone is currently 90% of our entire GDP! Again, when it reaches 100% it's game over! And the stock market is a very poor indicator of the real economy, although it's been rising, it's all manipulated, and the banks are blatantly doing it right out in the open. They are currently not borrowing money, or very little, so you have to ask, how are they posting such huge profits...? They are speculating in the market, while the "market makers" run the price of stocks super high, in order to entice mutual funds into the market, they sell into the dumb mutual funds for huge profits. One example, look at Ford Motor company, at the stock market bottom, their stock hit $1, now it's hit as high as $14.....that's 14 times your money. Banks are selling into the mutual funds, the 401k's are buying at these outrageous price

Here's how: Let's say there is 2 banks involved for this example. Bank A values their assets for 10M dollars, while Bank B does the exact same thing, then Bank A agrees to buy Bank B's assets for 30M dollars, as long as Bank B will buy Bank A's for the same amount......Wa-La! They both profited thanks to the Government bailouts and especially the tax payers!

It's the largest PONZI scheme ever! And like all ponzi schemes, they never end well.