QUESTION: Many people argue it is capitalism which is collapsing not socialism. How would your respond?
ANSWER: Those people who say this is a failure of capitalism and not socialism simply are trying to come up with an excuse as to why their dreams are not coming true. Democrats champion the poor and middle class but run to the rich for money. Why would bankers and hedge funds as well as Hollywood support Democrats if they are really hated so much? The answer is rather simple. They can bribe them for loopholes and favors.
When we look at the markets and try to ascertain the long-term direction, we must look at politics closely, for this holds the key. First, this is a Private Wave and that means the confidence in government is collapsing. Hence, the question for the direction of stocks, gold, interest rates, and the world economy, all hinges on how fast the perception of government collapsed on a global scale. Both sides of the aisle are corrupt and rotten to the core. Republican or Democrat, they are all in this for what they personally can grab and they are incapable of doing anything right for society because power corrupts.
It was the Democrats who came up with the Social Security scheme and designed it to be exactly as a fraud that anyone in the private sector would do to jail for. They used the Ponzi Scheme model where you take money from one person and pay another so they think they have a profit and more and more people come to invest. Here they would impose a tax upon the younger generation to pay for the older generation while telling people they were paying into a retirement fund. Of course, Congress used the money to fund spending for other things and stuffed the fund with government bonds preventing it from ever investing.