Have you recently wondered why the media has been reporting everything in the economy is sunshine and flowers, that we’re out of the “Great Recession,” and that things around the country are getting better, but you can’t seem to find an actual person on the street who agrees with them?
I’m a financial nerd, so instead of listening to music while I’m in my car (which is most of my life living in the Los Angeles area), I listen to financial and market analysis podcasts. One analyst I listen to often is Porter Stansberry, who had a very good saying about determining the current state of our economy:
“If my neighbor loses his job, it’s a recession. If I lose my job, it’s a depression.”
But while those of us in the real world see just how awful the economy really is, the government keeps telling us that we’re not only on the road to recovery, but that our economy and GDP are healthy and growing, while unemployment keeps dropping and American’s are better off and happier than they were a year ago.
I’m of the belief that bubbles and crashes are a natural part of the market and economy, and know quite a few investors who make the majority of their profits in crashes. We know that the stock market is a cyclical machine, which crashes every 7-11 years based on past performance, and investors with patience and an understanding of that cycle are some of the most successful.
Every analyst worth his salt says that we should be in a crash right now, the economic numbers are grossly inflated, and it’s only a matter of time until the next crash comes. Even Steve Forbes is saying to hold gold right now, to be prepared for what comes next.
But when looking at the stock market, you can’t just look at economic data anymore to determine what’s going to happen next; you also have to look at politics.
It was a conversation between Robert Kiyosaki (Rich Dad, Poor Dad) and Charles Goyette (The Dollar Meltdown) that helped me to understand why the current administration is doing everything they can to manipulate economic data, put out all the stops to falsely prop the market up and keep the impending crash away as long as possible.
While Charles believes that the crash is imminent, as many others do, Robert put forth a theory that makes a lot of sense: that the DNC wants nothing more than Hillary Clinton to be elected in 2016, and knows that she’ll only be elected in a healthy market and economy.
While Charles advised to “batten down the hatches” now because the crash will be very soon, Robert believes that the democrats will do everything in their power (like manipulating economic data and using the governmental bodies to keep the dollar afloat) to keep the machine running until the next election.
I’ve heard the theories come up quite often in 2014 that the government was manipulating economic data, but the question “why” was never quite answered. Now that I’ve been given an answer by a very wise and successful investor, I almost wish I had never had.
I’ve always suspected that the game was rigged, but if Mr. Kiyosaki is correct, and the rigging goes all the way to the White House, then I am truly afraid for our future and what will come.