So is there a Financial Recovery?

Kia Ora,

So is there actually a financial Recovery going on?

Of course everyday you hear the 'experts' say yes there are signs, but we have to be careful.

How ever if you have being working on your financial education then It appears to be more smoke & mirrors. 2012 is looking more like the time of big change than ever.

Several economic cycles are coming together, the time that history shows a fiat currency hits zero is due in 2011 for the US at least. Since all other currencies are tied to the US currencies are tied to the US, then at some stage they too will go to zero some time soon after.

Then the cycle will probably start again as it has for thousands of years & man tries to think he can outsmart what appears to be a natural law.

First we will start with any currency tied to something like Gold again. then as time goes on there will be a war or similiar & to pay for it, someone will take currencies off the gold standard & then we have to start creating debt bubbles to grow the economy.

At the moment there are so many smoke & mirrors being put up in particular by the US to hide what is going on.

They say they are not printing money, but quantitive easing. Amounts to the same thing.

Now it looks like banks are going to have to pay back bail outs, but biggest bail outs are not going to have to be paid back (those of Freddie Mac & Fannie Mae) which was just added to be $200 billion a few weeks ago when every body was on holiday. Much of that bail out money will be paying the banks who will use it to pay off their bailouts & then they will proceed to carryon as if nothing has changed.

Then there are the ETF's which right now is in  the US courts to prove that they actually for all intense purposes are trading on what the US would call a Ponzi scehme.

If you trade in the ETF's you are supposed to be trading a cheaper way to own things such as gold & silver. Thing is take silver for example, they are said to be trading more than twice the amount fo silver available in the whole world.

Looks like we will have a 1998 again where Warren Buffett collected on his futures trade, but asked for payment in the actual silver. They had to close the markets to find the actual metal to pay him & overnight the trade on the phsyical metal jumped to nearly twice the price.