Dow Jones 14,000 points and beyond? A New Bubble Economy

Prophecy News Flash: (09 March 2013)

Friends,
Yesterday topped a record-breaking week for the Dow Jones closing this Friday at 14,397.07 shares. Next came the February jobs report that 236,000 jobs were added in the US dropping the monthly unemployment rates to the lowest in four years, down to 7.7 percent.

We are on a jobs increase roll since November adding on average a monthly increase of 205,000 jobs per month. The housing market improves adding more urban areas across 48 US states into a modest sliver in the black.

It all sounds too good to be true because it is.

What I said in an article (click on Recession) published August 2009 castigating the then Secretary of the Treasure Geithner about declaring the Recession over still holds true now:

The elite see the world through their own entitlement-tinted ivy-league glasses. They are right; of course, the recession is over — for them — but what about you and I? What about the hundreds of thousands who will lose their jobs, their homes and their finances this August [2009]? What about the tens of millions who will tentatively hold onto jobs downsized and earnings cut this August [2009]? The barons of the licentious markets might mumble a platitude about that and shift in their seats a bit uncomfortably. Then they will spout pure dogma as truth that, well, jobs are always the last thing that improves in a recession-cum-depression, right? The Secretary of Treasury, Geithner, will pensively pout a pundit pose to ABC News’s Chief Washington Correspondent George Stephanopoulos, and the host of ABC’s Sunday morning news show This Week with George Stephanopoulos, that the recession is over, however, jobs — you know, the thing most of us people below the elites kind of need to survive — will not recover until “around this time next year.” (The Recession is Over, if you are Rich: 4 August 2009)

Geithner’s prediction was wrong. Jobs continued to be shed through August 2010 and onwards and only since November 2012 have we begun to see a steady if extremely modest increase of new jobs, most of which are part time. The economic evangelists like to skirt around that on the news.

Nor do the pundits and the news anchors like to bring more than a mumbled afterthought of shadow after their flowery reports that the speculation economy may be booming but the real economy is not.

A 205,000 job average a month since November barely gives us a few thousand more than the minimum job increases needed just to match the population trends of young people entering the workforce of a country of 300 million people. If jobs had increased since November and continued to increase for the next six months to an average of 300,000 or 400,000 per month THEN, I would be celebrating.

Like the job market, the manufacturing market is showing similar nudges curving upwards slightly the flat line of its plateau of growth. The corporate networks can celebrate it like the 205,000 jobs but it really stretches credulity that we are coming out of the Great Recession.

Worst of all is the illusion that a Wall Street recovery is sign of a general trend to economic recovery. The über-Banks and banksters have been generously bailed out. They remain too big to fail or too big for prosecution for fraud and embezzlement by President Obama’s Department of Justice head who will politically live on in a second term. Eric Holder was once a lawyer for the defense of many of the same corporate interest and banks needing his council and defense to wheedle around laws and regulations.

The money the taxpayers gave the banking industry does not go back into hard economic investment into small business and industries. The bankers have “Shmauged” the money, like J.R.R. Tolkien’s notorious dragon hiding a great hoard of gold in the the deep and ancient volcanic vents and spent lava-chamber vaults of Mount Doom.

That mountain of money in the many trillions of dollars is going into stock investments, folks. Not into investments to build a new US infrastructure, not into small business loans, not into financing the reeducation of 15 million unemployed and underemployed US workers who will never see their outsourced jobs return and need training for a new blue collar trade or white collar career.

That money is not invested in working Americans. It is invested in Wall Street stocks, plumped up by the Fed printing paper and cyber play money for bonds at rock bottom interest.

Is it any wonder then, that the Dow Jones launches into the stratosphere and your manipulated American mainstream media fawns over false economic recovery news?

I gave you all a warning years ago, to look for two factors to indicate when the next economic “boom” boondoggle bubble would arise. Back on 17 February 2011, I made a confession about a rare mistake of editing my oracle’s statement about the DOW for Predictions for 2011 eBook that I wanted to rectify by documenting the prophetic record in print:

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For the prophetic record, I think it is time to add something about Wall Street that I earlier decided not to put in the book. It was a casualty of my own prophetic bias because I just could not bring myself to report it. Since Predictions for 2011 was posted online I have not felt good about going against my oracle’s surprising forecast of just how high Wall Street stocks will rise in 2011, yet now I must bear witness to its prophecy while the year in forecasted question is young. So, here is the spirit of what I did not sign off on the 21st of December last year, even thought that is when I was given the message.

You will see some people make a profit, even on civilization-threatening speculation. The Dow Jones will reach beyond 14,000 points this year, even as large portions of the world go hungry because the hoarded and uninvested profits of a few starve the many, even in developed countries like the United States.

Hogueprophecy: Alarm Bells sounding unsustainable Global Food Distribution even on NBC

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Never let it be said, except by people who judge without reading me, that I don’t display my mistakes with my successes. Though speculators in the food business did indeed raise prices on a dwindling supply of food for a rising demand, as they still do today, it did not see the Dow rise to 14,000 points in 2011 or 2012 but only recently in 2013.

What I initially wrote and published for the record about predictions for 2011 in December of 2010 turned out more accurate specifically for the stock market rise for 2011 and the loosening of TARP restrictions on the banking and financial sectors:

In the name of freeing up the economy, the new Congress will begin pulling off the bandages of Bush’s TARP and other money wad bandages of Obama’s reforms. They’ll be playing with the wounds.

The bubble Obama let the financial banks and Wall Street start blowing up again will balloon rapidly under this new Congress. You could find stocks climbing well beyond 12,000 points on the Dow Jones Exchange.

Yes! You could see that, especially if Republican House and Senate legislators hold onto the panacea that cutting taxes cures all. They keep putting their blind ideological faith in mathematically implausible numbers rather than good old-time Republican business acumen.  (Chapter 8: A Cold Depression, like a Cold War)

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I will say in my intuition’s defense that the bubble of a new perversion of economic realities of Capitalism, which I call “Financialism”, did begin to blow bigger in 2011 through 2012. The rise to 14,000 points and beyond was delayed – perhaps even manipulated by economic forces desiring an influence on the US presidential election outcome. Once the election was decided, out came the final record-breaking climb out of the 13,000s into today’s highest Wall Street numbers ever and counting.

In my writings I have often recorded that when the Dow Jones goes through the record roof and WTI and Brent Crude Oil prices per barrel remain hovering around $100 a barrel and beyond, THAT, my readers, is when the next great economic ballooning bubble is on its way for a big “pop”. Right now, at the time of this writing on 9 March 2013, the WTI Crude Oil is trading $91.87, up 0.31 (0.34 percent). The Brent Crude Oil price is $110.68, down 0.42 percent but generally it has been holding around or above $100 a barrel for a long while now and oil-price.net predicts it will stay steady at $106.00 for the year. I think the prediction is low and that the Wall Street rise is going to see that Brent and WTI number perhaps get in the $120 per barrel later in the year.

In Predictions for 2013, the book I am working to complete by end of this March 2013, if reporting on the papal conclave permits, I will provide an entire chapter explaining in detail when that bubble will burst and we see a Great Recession possibly become a “Greater Depression”.

Please return now to the main Hogueprophecy article page on Papal Prophecies.

John Hogue
(09 March 2013)

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