The Daily Caller

The Daily Caller

Obamageddon: Signs that we are on the verge of another Great Depression

Wayne Allyn Root
Author, The Ultimate Obama Survival Guide

The best professional poker players in the world earn millions by reading and reacting to “tells,” their opponents’ verbal and nonverbal traits. They notice the way an opponent is smiling, frowning, laughing, tapping their hands, sweating, or blinking their eyes. All these “tells” can be signs of their opponent’s cards. For poker players, the ability to read “tells” is the difference between living the life of their dreams and going bankrupt.

The same holds true in deciphering our economic troubles. If you’ve been paying attention to the news, several ominous signs have appeared that foretell economic disaster. After reading these “tells,” I believe you’ll agree we are entering “Obamageddon” — Obama’s Great Depression.

The first sign is the fact that Bill Gross, head of the world’s largest bond fund (PIMCO), has just sold all of his domestic government bond holdings. Every single dollar. Do you have any idea what that means? In my opinion, Bill Gross is one of the ten smartest men on this planet. He knows everything about the economy and bonds. His sell-off indicates he believes governments at the local, state and federal level are on the verge of bankruptcy.

The next “tell” of economic disaster is even more ominous. Wall Street insiders are startled at how much money the Fed is pumping into the financial system. With over $500 billion pumped in during just the past three months, the vertical line for 2011 now reaches straight to the stars — a sign of complete financial panic. The last time such large amounts of money were pumped into the system was in the fall of 2008, when the U.S. economic system was on the verge of epic collapse. What has the Fed so scared at this moment? What is happening behind the scenes to cause such panic?

The next “tell” is that, only days ago, Dallas Federal Reserve President Richard Fisher admitted in a media interview that “the U.S. is on a fiscal path towards insolvency.” Expecting candor from Fed officials is like expecting an honest answer when asking O.J. whether he killed Nicole. Good luck. When a Fed official talks about “fiscal insolvency,” it’s time to get concerned, very concerned.

The next “tell” is a recent housing study proving the housing market is actually worse off now than it was in the depths of the Great Depression. From 1929 to 1932, new home sales in the United States declined by 80%. From 2005 to today, new home sales have plunged 82%. Even more frightening, the plunge seems to be accelerating. How low can it go?

Other disastrous “tells” that financial Armageddon is upon us are new reports that the consumer confidence index just suffered the fifth-largest drop in history, and inflation at the producer level just spiked up in the largest one-month rise since the dreaded inflation and economic malaise of the 1970s.

Let’s sum up the frightening news — Wall Street superstars like Bill Gross are panicking, the Fed is panicking, housing prices are headed to junk bond status, inflation is raging, and consumers are in a state of panic before reading this commentary.

  • russ311

    When the collapse comes, those idiots that have always thought the purpose of government is to take care of them, provide for their retirement, their health, their children’s education and food entitlements, and that the government will save them from their own individual inadequacies and lack of responsibility to ensure their own health, wealth and welfare, when it all goes to crap, they will act like the zombies they are and try to take whatever they see and can find away from those who have tried to be more self-reliant. Therefore, the best solution is to stock up on more ammo.