How to Think Clearly

"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

If you want to fully understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analyses, you will need to learn how to think clearly if you already lack this vital skill.

For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.

The best way to begin clearing your mind is to move forward with this series of steps:

1. GET RID OF YOUR TV SET, AND ONLY USE STREAMING SERVICES SPARINGLY.

2. REFUSE TO USE YOUR PHONE TO TEXT.

3. DO NOT USE A "SMART (DUMB) PHONE" (or at least do not use your phone to browse the Internet unless absolutely necessary).

4. STAY AWAY FROM SOCIAL MEDIA (Facebook, Instagram, Whatsapp, Snap, Twitter, Tik Tok unless it is to spread links to this site). 

5. STAY OFF JEWTUBE.

6. AVOID ALL MEDIA (as much as possible).

The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.

You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after two sociologists who described it in a research publication. See here.

Many people today think they are virtual experts on every topic they place importance on. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets and bogus online sources. The more information these individuals obtain on these topics, the more qualified they feel they are to share their views with others without realizing the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth. Furthermore, online sources are even more dangerous for misinformation, especially due to the fact that search algorithms have been designed to create confirmation bias. 

A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are often politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements, and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests to interview based on the agendas they wish to fulfill with their advertisers rather than interviewing unbiased experts who might share different viewpoints than the host.

Once the audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media. 

Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV.  They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong. But they have developed confidence in speaking about these topics due to an inflated sense of expertise in topics for which they continuously demonstrate their incompetence.

One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.

We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.  From there, we recommend other classics from Greek philosophers. After all, ancient Greek philosophers like Plato and Socrates created critical thinking.   

If you can learn how to think like a philosopher, ideally one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick, or multi-level marketing (MLM) crowd.





STOP Being Taken

If you want to do well as an investor, you must first understand how various forces are seeking to deceive you. 

Most people understand that Wall Street is looking to take their money.

But do they really understand the means by which Wall Street achieves these objectives? 

Once you understand the various tricks and scams practiced by Wall Street you will be better able to avoid being taken. 

Perhaps an even greater threat to investors is the financial media.

The single most important thing investors must do if they aim to become successful is to stay clear of all media.

That includes social media and other online platforms with investment content such as YouTube and Facebook, which are one million times worse than the financial media.

The various resources found within this website address these two issues and much more. 

Remember, you can have access to the best investment research in the world. But without adequate judgment, you will not do well as an investor.

You must also understand how the Wall Street and financial media parasites operate in order to do well as an investor. 

It is important to understand how the Jewish mafia operates so that you can beat them at their own game.

The Jewish mafia runs both Wall Street and the media. This cabal also runs many other industries.

We devote a great deal of effort exposing the Jewish mafia in order to position investors with a higher success rate in achieving their investment goals.

Always remember the following quotes as they apply to the various charlatans positioned by the media as experts and business leaders.   

“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.” - King James Bible - Matthew 7:15

"It's easier to fool people than to convince them that they have been fooled." –Mark Twain

It's also very important to remember this FACT.  All Viewpoints Are Not Created Equal.

Just because something is published in print, online, or aired in broadcast media does not make it accurate. 

More often than not, the larger the audience, the more likely the content is either inaccurate or slanted. 

The next time you read something about economics or investments, you should ask the following question in order to determine the credibility of the source.

Is the source biased in any way?  

That is, does the source have any agendas which would provide some kind of benefit accounting for conclusions that were made? 

Most individuals who operate websites or blogs sell ads or merchandise of some kind. In particular, websites that sell precious metals are not credible sources of information because the views published on these sites are biased and cannot be relied upon.

The following question is one of the first things you should ask before trusting anyone who is positioned as an expert. 

Is the person truly credible?  

Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. 

Most individuals who have been provided with media exposure are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; those who buy advertisements. 

In the case of the financial genre, instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible.

It's much more important to carefully examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day.  Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record. 

Don't ever believe the claims made by the source or the host interviewing the source regarding their track record. 

Always verify their track record yourself. 

The above question requires only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.

We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.

There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis.

Mike has been a professional in the financial industry for nearly three decades. 

Alhough he publishes numerous articles and videos addressing the dark side of the industry, the core collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes

Also, the Image Library contains nearly 8,000 images, most of which are annotated.


At AVA Investment Analytics, we don't pump gold, silver, or equities because we are not promoters or marketers.

We actually expose precious metals pumpers, while revealing their motives, means, and methods.

We do not sell advertisements.

We actually go to great lengths to expose the ad-based content scam that's so pervasive in the world today. 

We do not receive any compensation from our content, other than from our investment research, which is not located on this website. 

We provide individual investors, financial advisers, analysts and fund managers with world-class research and unique insight.







Media Lies

If you listen to the media, most likely at minimum it's going to cost you hundreds of thousands of dollars over the course of your life time.

The deceit, lies, and useless guidance from the financial media is certainly a large contributor of these losses.

But a good deal of lost wealth comes in the form of excessive consumerism which the media encourages and even imposes upon its audience.

You aren’t going to know that you’re being brainwashed, or that you have lost $1 million or $2 million over your life time due to the media.

But I can guarantee you that with rare exception this will become the reality for those who are naïve enough to waste time on media.

It gets worse.

By listening to the media you are likely to also suffer ill health effects through excessive consumption of prescription drugs, and/or as a result of watching ridiculous medical shows, all of which are supportive of the medical-industrial complex.

And if you seek out the so-called "alternative media" as a means by which to escape the toxic nature of the "mainstream" media, you might make the mistake of relying on con men like Kevin Trudeau, Alex Jones, Joe Rogan, and many others.

This could be a deadly decision. As bad as the so-called "mainstream" media is, the so-called "alternative media" is even worse.

There are countless con artists spread throughout the media who operate in the same manner. They pretend to be on your side as they "expose" the "evil" government and corporations.

Their aim is to scare you into buying their alternatives.  This addresses the nutritional supplements industry which has become a huge scam.  

 

Why Does the Media Air Liars and Con Men?

The goal of the media is NOT to serve its audience because the audience does NOT pay its bills.

The goal of the media is to please its sponsors, or the companies that spend huge dollars buying advertisements.

And in order for companies to justify these expenses, they need the media to represent their cause.

The media does this by airing idiots and con artists who mislead and confuse the audience.

By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused.

The financial media sets up the audience so that they become needy after having lost large amounts of money listening to their "experts." Desperate for professional help, the audience contacts Wall Street brokerage firms, mutual funds, insurance companies, and precious metals dealers that are aired on financial networks. This is why these firms pay big money for adverting slots in the financial media.

We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the "mainstream media." Do not be fooled. There is no such thing as the "alternative media."  It really all the same. 

In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed.

And the same powers that control the distribution of the so-called "mainstream media" also control distribution of the so-called "alternative media."

The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media."  

The tactic is a very common one used by con men.

The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties.

In reality, both parties are essentially the same when it comes to issues that matter most (e.g. trade policy and healthcare) because all U.S. politicians are controlled by corporate America. Anyone who tells you anything different simply isn't thinking straight.

On this site, we expose the lies and the liars in the media.

We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.  




 

Why Stathis Was Banned

To date, we know of no one who has established a more accurate track record in the investment markets since 2006 than Mike Stathis.  

Yet, the financial media wants nothing to do with Stathis.  

This has been the case from day one when he was black-balled by the publishing industry after having written his landmark 2006 book, America's Financial Apocalypse

From that point on, he was black-balled throughout all so-called mainstream media and then even the so-called alternative media. 

With very rare exception, you aren't even going to hear him on the radio or anywhere else being interviewed.  

Ask yourself why. 

You aren't going to see him mentioned on any websites either, unless its by people whom he has exposed.  

You aren't likely to ever read or hear of his remarkable investment research track record anywhere, unless you read about it on this website.

You should be wondering why this might be.

Some of you already know the answer.

The media banned Mike Stathis because the trick used by the media is to promote cons and clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street, gold dealers, etc. 

Because the media is run by the Jewish mafia and because most Jews practice a severe form of tribalism, the media will only promote Jews and gentiles who represent Jewish businesses.  

And as for radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so ignorant that they assume those who are plastered throughout media are credible.

And because they haven't heard Stathis anywhere in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.  And they are too lazy to go through his work because they realize they are too stupid to understand the accuracy and relevance of his research. 

Top investment professionals who know about Mike Stathis' track record have a much different view of him. But they cannot say so in public because Stathis is now considered a "controversial" figure due to his stance on the Jewish mafia. 

Most people are in it for themselves. Thus, they only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads.

This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists.

We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies, and fraud.

We have been banned by virtually every media platform in the U.S and every website prior to writing about the Jewish mafia.

Mike Stathis was banned by all media early on because he exposed the realities of the United States.

The Jewish mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street, corporate America, free trade, U.S. healthcare, and much more.

Stathis has also been banned by alternative media because he exposed the truth about gold and silver. 

We have even been banned from use of email marketing providers as a way to cripple our abilities to expand our reach. 

You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it.

BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.

Because Mr. Stathis exposed so much in his 2006 book America's Financial Apocalypse, he was banned.

He was banned for writing about the following topics in detail: political correctness, illegal immigration, affirmative action, as well as the economic realities behind America's disastrous healthcare system, the destructive impact of free trade, and many other topics. He also exposed Wall Street fraud and the mortgage derivatives scam that would end of catalyzing the worst global crisis in history. 

It's critical to note that the widespread ban on Mr. Stathis began well before he mentioned the Jewish mafia or even Jewish control of any kind.

It was in fact his ban that led him to realize precisely what was going on.

We only began discussing the role of the criminality of the Jewish mafia by late-2009, three years AFTER we had been black-listed by the media.

Therefore, no one can say that our criticism of the Jewish mafia led to Mike being black-listed (not that it would even be acceptable).  

If you dare to expose Jewish control or anything under Jewish control, you will be black-balled by all media so the masses will never hear the truth.

Just remember this. Mike does not have to do what he is doing. 

Instead, he could do what everyone else does and focus on making money. 

He has already sacrificed a huge fortune to speak the truth hoping to help people steer clear of fraudsters and to educate people as to the realities in order to prevent the complete enslavement of world citizenry. 

  

Rules to Remember

Rule #1: Those With Significant Exposure Are NOT on Your Side.  

No one who has significant exposure should ever be trusted. Such individuals should be assumed to be gatekeepers until proven otherwise.  I have never found an exception to this rule.

Understand that those responsible for permitting or even facilitating exposure have given exposure to specific individuals for a very good reason. And that reason does not serve your best interests. 

In short, I have significant empirical evidence to conclude that everyone who has a significant amount of exposure has been bought off (in some way) by those seeking to distort reality and control the masses. This is not a difficult concept to grasp. It's propaganda 101.   

Rule #2: Con Artists Like to Form Syndicates.

Before the Internet was created, con artists were largely on their own. Once the Internet was released to the civilian population, con artists realized that digital connectivity could amplify their reach, and thus the effectiveness of their mind control tactics. This meant digital connectivity could amplify the money con artists extract from their victims by forming alliances with other con artists.

Teaming up with con artists leads to a significantly greater volume of content and distraction, such that victims of these con artists are more likely to remain trapped within the web of deceit, as well as being more convinced that their favorite con artist is legit. 

Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps." This is a very important rule to remember because con men almost always belong to the same network.  You will see the same con artists interviewing each other,referencing each other, (e.g. a hat tip) on the same blog rolls, attending the same conferences, mentioning their con artist peers, and so forth.

Rule #3: There's NO Free Lunch.  

Whenever something is marketed as being "free" you can bet the item or service is either useless or else the ultimate price you'll pay will be much greater than if you had paid money for it in the beginning. 

You should always seek to establish a monetary relationship with all vendors because this establishes a financial link between you the customer and the vendor. Therefore, the vendor will tend to serve and protect your best interests because you pay his bills. 

Those who use the goods and services from vendors who offer their products for free will treated not as customers, but as products, because these vendors will exploit users who are obtaining  their products for free in order to generate income.   

Use of free emails, free social media, free content is all complete garbage designed to obtain your data and sell it to digital marketing firms.

From there you will be brainwashed with cleverly designed ads. You will be monitored and your identity wil eventually be stolen. 

Fraudsters often pitch the "free" line in order to lure greedy people who think they can get something for free. 

Perhaps now you understand why the system of globalized trade was named "free trade." 

As you might appreciate, free trade has been a complete disaster and scam designed to enrich the wealthy at the expense of the poor. 

There are too many examples of goods and services positioned as being free, when in reality, the customers get screwed.  

Rule #4: Beware of Manipulation Using Word Games. 

When manipulators want to get the masses to side with their propaganda and ditch more legitimate alternatives they often select psychologically relevant labels to indicate positive or negative impressions.

For instance, the financial parasites running America's medical-industrial complex have designated the term "socialized medicine" to replace the original, more accurate term, "universal healthcare." This play on words has been done to sway the masses from so much as even investigating universal healthcare, because the criminals want to keep defrauding people with their so-called "market-based" healthcare scam, which has accounted for the number one cause of personal bankruptcies in the USA for many years.  

When Wall Street wanted to convince the American people to go along with NAFTA, they used the term "free trade" to describe the current system of trade which has devastated the U.S. labor force.

In reality, free trade is unfair trade and only benefits the wealthy and large corporations.

There are many examples on this play on words such as the "sharing economy" and so on.  

Rule #5: Whenever Someone Promotes Something that Offers to Empower You, It's Usually a Scam.

This applies to the life coaches, self-help nonsense, libertarian pitches, FIRE movement, and so on.

If it sounds too good to be true, it usually is.

Unlike what the corporate fascists claim, we DO need government.

And no, you can NOT become financially independent and retire early unless you sell this con game to suckers.  

Rule #6: "Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

Following this rule is forcing the small and dewindling group of intelligent people left in the world to cease interacting with people. 

You might need to get accustomed to being alone if you're intelligent and would rather not waste your time arguing with someone who is so ignorant, that they have no chance to realize what's really going in this world. 

It would seem that Dunning-Kruger has engulfed much of the population, especially in the West.     

Start Here

America. What Went Wrong? (Part 1)

As I have detailed with extensive data and accompanying analysis in America's Financial Apocalypse (2006/expanded and 2007/condensed), America’s once great economy has been gradually transformed into a Ponzi scheme through decades of unfair trade policies that destroyed millions of U.S. jobs.

Unlike many other books which discussed the real estate bubble in isolation (without even detailing many of the most probelmatic issues in real estate), this book went well beyond the real estate bubble by presenting a compelling case for a long period of economic depression.
 
I can guarantee you the chapter on the real estate bubble alone (chapter 10) serves as the most detailed and comprehensive analysis presented from any book solely dedicated to this bubble.

This article was originally written in 2010 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy. 

See also: 

Free Trade And The Suicide Of A Superpower (Part 1)

Free Trade And The Suicide Of A Superpower (Part 2)

Free Trade And The Jewish Mafia

Ford As A Crystal Ball For America

Ford: Playing Its Last Hand?

GM Lines Up for Its Take

Washington's War Against America's Middle Class

Video: Educating A Libertarian Hack From Harvard

7 Myths About US-China Trade and Investment 

The Scam Called Globalization

The Dirty Secret about Hedonics & Globalization

Thailand, Globalization and Real Estate Economics

America. What Went Wrong? (Part 1)

America. What Went Wrong? (Part 2)

America's Second Great Depression

America's Eroding Job Quality

The Death of Labor Unions in America

 Death of America

As I have detailed with extensive data and accompanying analysis in America's Financial Apocalypse (2006/expanded and 2007/condensed), America’s once great economy has been gradually transformed into a Ponzi scheme through decades of unfair trade policies that destroyed millions of U.S. jobs.

Unlike many other books which discussed the real estate bubble in isolation, this book went well beyond the real estate bubble by presenting a compelling case for a long period of economic depression.
 
I can guarantee you the chapter on the real estate bubble alone (chapter 10) serves as the most detailed and comprehensive analysis presented from any book solely dedicated to this bubble.
 
I also discussed many issues that have since become hot beds of discussion, such as chapters on the healthcare crisis, the entitlement tsunami, how Washington manipulates economic data, the commodities bubble, and many other topics.
 
But of course, due to the media’s widespread ban on me, I have received no credit for exposing these issues. Instead, others who have sold out to the media have stolen my analysis and claimed it as their own. But my written track record demonstrates who the leader is and who the followers are.  
 
I’m telling you this not to boast, but because you need to understand how you have been fooled.
 
You need to understand how America’s media monopoly practices censorship daily.
 
You need to understand who the leaders of critical analysis are and who the followers are.
 
You need to examine track records and spot agendas.
 

We are now seeing this depression unfold.

Yet, Washington, Wall Street, and the media hacks continue to downplay the severity of the situation, hoping to buy them time as they flood the financial system with a historic amount of dollars.

 
 
One could argue that America’s Second Great Depression actually began in 2001. As an attempt to mask the reality of America’s gradual decline, just over a decade ago economists and politicians proclaimed the “Information Age” as the engine of the “New Economy,” promising higher living standards for all.
 
As I detailed in America's Financial Apocalypse, there have been no real improvements to the economy since 2003 (possibly since 2000). Instead, a new bubble was formed by Alan Greenspan; this time in real estate.
 
 
 
 
It was the biggest real estate bubble in history, although many industry insiders denied its existence, even as it began to burst.
 
As I and many others had predicted, the results would create widespread devastation once the bubble popped.
 
 
 
 
Others served as Wall Street hacks, claiming the economy was great and the stock market was headed to 15,000.
 
 
 
 
Even as the devastation was sweeping across the nation, America's propaganda machine continued to hide the facts, while interviewing idiots and liars.
 
But don't blame them. If you listened to these idiots you have no one else but yourself to blame because you didn't bother to check agendas and track records.
 
 
 
If you lost money due to their lies and ignorance, you only have yourself to blame for being gullible.
 
 
 
History only repeats because people don't learn from the past.
 
Unfortunately, most people will not learn from this, just as they didn't learn from the dotcom collapse.
 
If one is to accept the traditional dog-and-pony metrics used by Washington economists and related individuals, including groups that adhere to these ideas, the previous “economic expansion” dates back from late 2001 to December 2007.
 
As the CBPP reports, poverty continued to rise during and after the 2001 recession and failed regress back to prerecession levels, “representing one of the worst periods for poverty reduction of any economic recovery in decades.”
 
Rather than higher living standards for all, the “New Economy” has brought higher living standards to much of the developing world, corporate executives and wealthy shareholders of U.S. corporations. 
 
 
 
Meanwhile, working-class Americans have been left out of the picture.
 
In fact, because there is a finite amount of wealth to divide, it’s clear that America’s wealthy elite and much of the developing world have seen their living standards increase at the expense of working-class Americans.
 
As detailed in America's Financial Apocalypse, and has been confirmed by numerous non-partisan, unbiased think tanks before and since, the monetary gains resulting from the previous economic expansion were disproportionately distributed to Americans at the highest income levels. 
 
According to Piketty and Saez, the top 1% of households received two-thirds of the growth in national income during this post-2001 recovery period. This represents the most distorted allocation of incomes seen from every other economic expansion since the “roaring 20s” pre-depressionary period. 
 
 
 
 
Rather than higher living standards for all, this proclamation of a “New Economy” has been nothing short of a smoke screen for trade policies that continue to destroy working-class America, while enriching corporations, their owners and executives, and workers from developing nations.
 
It’s been socialism for corporations and developing nations at the expense of working-class Americans.
 
Not by coincidence, the current bailouts advocated by Washington bear a striking resemblance to their own policies of economic extortion through the mechanisms of free trade.
 
Not by coincidence, the most recent asset bubble imploded in a manner similar to the previous dotcom bubble.
 
Not by coincidence, the media, Wall Street and Washington denied the problems all the way down.
 
 
 
 
It was a domino effect, starting with the implosion of hundreds of dotcoms that had cooked the books.
 
Next, 911 came.
 
Shortly thereafter, giant blue chips held by nearly every investor collapsed.
 
First there was Enron, then WorldCom, then Tyco. This caused a dismissal of confidence in the capital markets.
 
By the time the media admitted problems, everything had bottomed out.
 
By the time Wall Street issued sell signals, stocks were at multi-decade lows.
 
Investors panicked, causing the markets to plummet further. And Wall Street quietly began buying at the bottom, as they always do.
 
The strong economic partnership between Wall Street and the financial media made both sides very wealthy at the expense of Main Street, just as it always has.
 
Just as in the dotcom collapse, the current real estate collapse has seen virtually no criminal indictments for securities fraud directly responsible for the collapse.
 
Instead, a few scapegoats were chosen to distract attention from the true criminals who intentionally extorted shareholder equity. 
 
After the dotcom bubble popped, the media focused on Enron, WorldCom and Tyco – none of which had anything to do with the dotcom fraud.
 
This allowed thousands of corporate executives, Wall Street bankers and analysts to escape from the heist scott free, wealthier than they could ever have imagined.
 
Today, the media focuses on Bernie Madoff, and Stanford.
 
While each Ponzi scheme was a victim not cause of the collapse, the media has fooled Main Street by focusing on them so as to protect the real criminals running the commercial banks, mortgage companies and Wall Street firms.
 
As a replacement for jobs that produce real goods; goods in demand across the globe, America’s “New Economy” is now characterized by a service economy based on scavenging wealth from the huge Ponzi scheme designed by Washington.
 
To promote this scheme, Washington insists that America has a free market economy. But the facts tell a different story, as I have alluded to on many occasions.
 
Decades ago, America’s “Old Economy” created good jobs during a period when U.S. imports were in high demand.
 
As a result, America became the world's largest creditor because it served as the global leader of manufactured goods; real products needed and demanded by the world – the best automobiles, consumer appliances, textiles, and basic materials.
 
Foreigners sent money into America in exchange for the best consumer goods in the world.
 
This helped create a strong middle class that fueled economic growth.
 
Pension plans grew over the years, providing retirement income, disability, and healthcare even during retirement.
 
During the "Old Economy" Americans had a healthy savings rate. Meanwhile, one-income households were the norm, so children were raised with more responsibility and attention.
 
During the “Old Economy,” healthcare and higher education were affordable, there were no credit cards, there was no need for cheap labor from illegal aliens, and America was a net exporter of crude oil. 
 
Employer-sponsored healthcare became the nations’ most predominant mechanism of providing healthcare, reaching 180 million Americans just a few years ago.
 
Towards the final stages of America’s “Old Economy” Asia began modernizing its own manufacturing industries.
 
Rather than automotive plants and consumer electronics, much of Asia’s manufacturing efforts were focused on providing goods for its own consumers so as to decrease dependence on imports. At first, they weren’t so good at it.
 
But once free trade became the status quo, it enabled Asia to enter the market place with unfair advantages while using illegal trade practices.
 
As discussed in America's Financial Apocalypse, as more American firms sent manufacturing plants overseas, Asia became the recipient of the unintended but inevitable transfer of intellectual property from the United States. This helped speed the pace of Asian manufacturing and know-how.
 
It enabled Asian companies to gain access to critical manufacturing and design secrets. Even Japan has benefited from U.S. intellectual property as the result of free trade.
 
In many cases, huge companies have been sold off to foreign competitors because they simply cannot compete on U.S. soil due to unfair trade. 
 
In return, U.S. corporations have increased their profits while providing cheap goods to U.S. consumers who buy more than they can afford using credit. This has created a perpetual loop of no escape.
 
As we know, all Ponzi schemes eventually come to a harsh end. At some point you need a real job to buy goods.
 
We are now seeing this Ponzi scheme unravel. Unfortunately, it still has a long way to go.
 
As a direct beneficiary of intellectual property from the U.S., Asia has evolved from making cheap trinkets to quality automobiles, consumer electronics, prescription drugs, and so on.
 
For many years now, Asia has dominated the consumer electronics industry. Now, China and Japan dominate the automotive industry.
 
But as thrifty Americans eager to snatch up the lowest-priced goods have seen, there is a hidden price that comes with Chinese imports; namely safety issues. As America becomes more reliant on China for more goods, without adequate safety standards, Washington has effectively threatened the safety of U.S. consumers because it was Washington that has created this import-driven economy. They have mortgaged off America’s ability to be self-sufficient.
 
China has already destroyed the U.S. textile, chemical, steel and other industries, using unfair trade and pricing practices. Meanwhile, Washington has sat idle, as has the World Trade Organization.
 
You ask why? How can this be?
 
Washington doesn’t have much bargaining power since China is the principal player in America’s Ponzi scheme, providing financing to keep interest rates low, which keeps U.S. consumers shopping “till they drop.” 
 
Of more detriment, U.S. consumers are buying a huge amount of imports from Asia, Europe and Latin America. This has indirectly led to even more job losses in America. But is some respects, they haven’t had a choice, as the buying power of the dollar has been in decline for a decade, while real media wages have not moved.
 
As you can imagine, this Ponzi scheme economy is nothing other than a perpetual loop that is virtually impossible to escape from without a major collapse; a collapse much larger than we see today. 
 
Due to the toxic effects of free trade, China will soon dominate the automotive and drug manufacturing industries. Already China leads the world in IT exports, boasts the second largest market for luxury goods, and leads the world in many other areas. By 2020, China will have the largest economy in the world.
 
Today, as healthcare costs mount, more companies are outsourcing in order to eliminate their fastest growing cost – healthcare.
 
You can imagine how job losses have affected families who relied on employer-based healthcare.
 
Obtaining health insurance in the private market is extremely costly. And if you have a pre-existing medical condition, it might be impossible. At the very least, in many cases, it will be cost-prohibitive.
 
Today, 160 million Americans rely on employer-based healthcare. Millions have been stripped of affordable healthcare coverage along with their jobs, in the name of free trade. And with the unfair rules of free trade in play, you can bet that millions more will lose affordable access to medical care one way or another.
 
Many companies have responded to rapidly rising healthcare costs by shifting premium hikes to employees. Other employers have changed their health plan to one that doesn’t cover as much or has higher deductibles. And of course other employers are sending jobs overseas where they don’t have to pay the costly expenses for health insurance and retirement benefits.
 
America is the only nation in the world with employer-based healthcare. It is a relationship that served the nation well decades ago, before unfair rules of trade pressured U.S. corporations to export jobs overseas. Without radical changes to free trade and a radical reform to its healthcare system, America will continue its competitive decline in global trade.
 
If you want to devise a system of free trade, all participants must play by the same rules. Otherwise, competitive advantages will be established favoring one or more nations over those operating under less favorable rules.
 
As it stands today, America has no chance to mount a permanent economic recovery without radical realignment of economic and trade policies.
 
Until free trade has been restructured into fair trade, millions of additional jobs will be sent permanently overseas. And the only replacement of these jobs will be service-oriented professions catering to the wealthy, similar to what you see in third world nations.
 
These will be jobs with no employee benefits; no healthcare, no disability, no retirement plans, no nothing. This shift has been in effect for two decades, but has accelerated with each of the most recent bubble implosions. Yet, many Americans only learn the hard way once they have lost their employee benefits, as this compensation amounts to over 40% of the media worker’s total compensation package. 
 
During America’s “Old Economy” Detroit was at its peak, along with Cleveland, Philadelphia and St. Louis. Today, these cities consist largely of ghettos.
 
Where blue-collar workers once lived, gangs have taken over. Instead of learning skills or obtaining an education, teens look to their parents and see no future, so they learn the drug trade as the only way out of the ghetto. 
 
But there’s a silver lining for some. Each of these “ghetto cities” has one or two small areas representing “old money” from the “Old Economy.” These estates rest on gorgeous lots, with fancy landscaping.
 
Chances are, the owners of these residences accumulated their wealth as a result of, or in spite of the decaying industries that once made these cities economic giants.
 
 
 
Chances are, they were the beneficiaries of free trade, corporate fraud and crony capitalism; some of the more prominent symbols of modern America. 
 
They may have been executives who were paid ridiculous sums of money, despite doing a lousy job.
 
They may have transitioned from politics into the corporate world where they were paid millions of dollars for having lunches with their friends in Washington in order to secure big government contracts.
 
They may have transitioned from the corporate world into politics, where they used their power to reward their corporate friends.
 
 
 
 
 
They may have worked as bankers, attorneys or consultants on leveraged buyouts and other deals that destroyed jobs and eliminated pensions.
 
Some of them are actually spies for foreign governments.
 
 
 
 
 
The “New Economy” is characterized by huge financial institutions which scavenge off of consumers and corporations.
 
 
 
 
This does nothing to create net productivity.
 
In fact, America's financial giants actually cause more harm than good.
 
As you might imagine, most of America’s largest financial services firms also make extensive use of outsourcing, just as most other U.S. corporations; anything for profits, even if it threatens the economic and thus national security of America. 
 
Those who read America’s Financial Apocalypse (2006) and Cashing in on the Real Estate Bubble (2007) were not only alerted to the catastrophe we see today, but were provided with SPECIFIC ways to profit that have yielded over 100% gains since then. 
 
These books are arguably more valuable today because the catastrophes over the past two years have confirmed that my understanding of what will happen is unmatched anywhere in the world.
 
Part 2 continues here.
 
If you want access to institutional-level research, analysis and investment guidance, subscribe to the AVA Investment Analytics newsletter today.
 
 
 
 

This article was originally written in 2010 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy. 

See Also:

Free Trade And The Suicide Of A Superpower (Part 1)

Free Trade And The Suicide Of A Superpower (Part 2)

Free Trade And The Jewish Mafia

Ford As A Crystal Ball For America

Ford: Playing Its Last Hand?

GM Lines Up for Its Take

Washington's War Against America's Middle Class

Video: Educating A Libertarian Hack From Harvard

7 Myths About US-China Trade and Investment 

The Scam Called Globalization

The Dirty Secret about Hedonics & Globalization

Thailand, Globalization and Real Estate Economics

America. What Went Wrong? (Part 1)

America. What Went Wrong? (Part 2)

America's Second Great Depression

 
 
 
 

 

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