Stock Market Crash 2012

Will the stock market crash in 2012? With all the bad news the S&P 500 and FTSE still seem to be remarkably high. Why is this?

There is a school of thought that suggests we are in such bad shape that the very foundations of our debt based monetary system is unravelling. Capitalism ( i.e borrowing from the future to invest wisely in the present to continue growth ahead of general population growth ) is in crisis. We have invested our capital badly into projects of little future vaue and given power to a minority who are hell bent on skimming as much as they can - because they don't know any other way to act. The system has been left in tatters. Every time it tries to self-regulate e.g failing banks (RBS, Citigroup etc) , failing business models (US solar energy, General Motors), failing accounting standards (IFRS banking book rule changes in 2009) the bankers use their politican friends to re-write the rule book and bail everyone out.

Life just doesn't work this way. We are just prolonging the inevitable reset of the system. Math is not influenced by cunning political debate or bonus increases - society in the West has become too unproductive to provide anything of value to the rest of the world. FACT. Instead of spending time educating our workforce and actually teaching them to enjoy learning and creating "new" great things - we put them into Finance to scam the system a little more. We need to make R&D not only acceptable but cherished. Researchers should come on TV and show children cool things. They should tour factories and laboratories to see and hear scientists talk about the cool science that people are looking into. Forget about Finance - the journey of designing and creating will be what they live for. Money after all, never used to buy you happiness. I know its hard to believe but the get rich quick schemes only really benefit those selling them. Even bankers realise their bonuses are peanuts compared to what those at the top of society receive.

You need to follow your passion to be happy.

Why is the economy so bad 2012? - simple

Here are the simple facts:

1.Most people who have jobs in the West are not creating value that is required by the rest of the world

2. More and more people just don't have any jobs because their education level is not high enough (a combination of poor degree choices and lack of unskilled jobs).

3. We, the western nations, have spent so much on non profitable endeavours (mis-allocated capital) that we can never hope to pay back the debt we have collected.

4. The East will never be able to buy stuff at the rate the West did from 1999-2007 (stimulate demand). It is ingrained in Chinese/Japanese culture to save.

5. The Euro will collapse in its present form due to excessive debts and an entitlement welfare state that no longer provides a cushion in hard times but an alternative to actually working for the economic benefit of the nation!

6. There are less people (as a percentage %) in work today than ever before since the 1920s.

It doesn't take a genius to see that the Kelptocracy that has been run as a pretend "Democracy" for the last 25 years is collapsing under the strain of its own lies.

We are in the end game of this political and monetary system. It cannot go on like this - the masses need to break free and educate themselves without the supervision of the "chosen few" elites in government

If you are reading this as a UK citizen here are the harsh realities you will face:

1. Working much harder for less
2. No state benefits or pensions unless you are actually fully disabled
3. A movement down in your quality of life to something approaching 1970s levels - e.g many grown up children living in a small house with fewer people owning their own properties and a lack of credit to purchase anything in advance e.g furniture, clothes, appliance repair
4. Watch the lives of "celebrities", politicians  general capitalists diverge from your own to a point which will become un-recognisable. You will be ruled by a class which does not face the same hardships you do and that will really be the final nail in the coffin as widespread looting and rioting will begin. 

How to fix these issues:

1. There is no quick fix. There are some options which we as a society need to decide upon

a. Have a war which brings increased production and reduces consumption
b. Generate exports & jobs through innovation and real engineering to fulfil this demand in the economy
c. Ensure our children are given the skills to innovate, risk and learn from failure without destroying their hopes of having a stable family life
d. Cut the welfare state and non-means tested pensioner benefits