Posted on 08/14/2009 7:21:40 AM PDT by HogsBreath
Anyone with an active interest in economics, or with the kind of bank account and job that causes them to read the Wall Street Journal should by now have a very good sense of what is coming down the pipe in the USA.
Most of the rest of the world – especially the Chinese – seem to have a very good sense of it.
While it is true that the USA is full of ingenious and enterprising people, and so probably won’t go up in a puff of smoke, it may soon be over in its current incarnation.
And here’s how we know.
(exerpt)
(Excerpt) Read more at themoderatevoice.com ...
Hmmmm...some musings:
The American Sheeple, who eat too much crap, and watch too much marxist television will elect a Marxist muslim President not even knowing what a Marxists is.
Then the media, with the help of progressives, socialists, statists, elitists, oligarchs, communists, and other malcontents across the globe, including Soros, et. al. will undermine the credibility of journalists and the media to produce a "change" and "hope" production, brainwashing those idiots who watch too much TV and read the NYT
Next, those same liberals/commies/socialists will be elected to office.
With the sense of entitlement and power, they will push too far, to try to implement their power and thus alienate the idiots that voted for them...they will become scared and expend much energy, including lies, threats, and corruption to stay in power
The collapse will happen after that :)
Keep your powder dry.
The socialists, with their newfound power, will become frightened by the increasingly agitated soundings coming from the "mob" and will move to ridicule and stereotype them as un-American malcontents until the sheeple will accept using the military against them and taking away their guns.
If this EVER happens - sell ALL dollars into anything. This is why there was hyper-inflation in Germany, Argentina...
We drifted.
Who do you think makes up the military? I will give you a hint - go in the parking lot of any army base or National Guard Armory, the cars with NRA stickers run at least 50%...
Cannot speak for the rest of the nation, but here in TX things are not like that.
1. The people have prepared.
2. Even the State law enforcement agencies will not attempt to take away the guns.
3. The people here will not give them an excuse, but should outside subjection be tried, it will fail.
4. I expect the resistance to be at the State level, with regional overtones.
5. A lot still depends on how quickly Obozo’s administration’s credibility collapses. It is moving pretty fast now.
6. Many of us here will resist outside subjection to the last breath. And the Many are Many.......
That's just for starters: there's more.
If it happens, I imagine the conservatives will be much better prepared:
- More gold\and or canned foods stashed away.
- Better general survival skills (farming, hunting, mechanical skills)
- Strong self reliance spirit.
The liberal losers will just gather around a local convention center and chant “We want help!”
He did the math on the taxes but not on inflation. The planned inflation will cause the deficit to disappear.
The key is determining the rate. What is the maximum tolerable rate?
if you set it low 6%, it will be gone in 12 years if you set it high, 12% it will be gone in 6 years. My guess is 7% and around 10 years as the target
Inflation is my bet.
When I downsized houses this year, I pulled out $200k @5% for 30 yrs.
I plan to pay it back with Obamabucks.
Well, we’re already at a ripe place for it happening. Basically, the groundwork is all laid out. The amount of debt we’re talking about is staggering. It numbs the mind just to think about it. And the economy... It wouldn’t take but maybe one more big unexpected economic event to push it past the tipping point.
That in itself wouldn’t be enough I don’t believe. But the kicker is that people are at each other’s throats already. I think Americans haven’t responded too well to having socialism shoved down their throats. There is a president in office against whom there is MUCH anger- and it’s not racism. People see what he’s trying to do. People don’t want to destroy the country with civil war but they wonder to themselves ‘how much can we take?’. It wouldn’t take much to put these people in the streets in big numbers.
Then, comes the last straw. We already see how hostile this government is towards conservatives demonstrating. Liberals getting naked and demonstrating in the streets is acceptable. Conservatives demonstrating is ‘alarming’ and must be counter-acted. You get large groups of Americans in the street and a rumour of guns and insurrection and maybe a police force somewhere panics. Tear gas and headthumping and suddenly some old lady is killed clutching her ‘Don’t Tread on Me’ protest sign. The crowd surges, someone pulls out a gun and maybe retaliates against the cops. This flares bigger and bigger. The governor calls out the National Guard to regain order.
Conservatives all over the country seeing troops being set on people who were demonstrating against Obama and/or his policies. And Obama has no credibilility to calm the nation down.
What do you think would happen then? How many people have been hoarding guns waiting for this moment? A lot. Civil War doesn’t require 50% on each side to finally reach a point where they decide to fight. Civil War requires only that a small but determined portion of the population reaches that point. Civil War really on needs a small group to kick start it. After that it’s just a question of whether people join in or not. If people are happy they won’t. But people aren’t happy and they are very polarized agaisnt one another. One little group orchestrates a battle with police where civilians are killed and I think you would start to see radical elements join quickly followed by less radical elements as the government response ratcheted up.
Aye... That’s how I see it. Basically things are building to a head. Unless health care is defeated and Obama is rendered completely ineffective as a result (thus relieving the pressure) there’s a good chance this is going to blow up. Will be ugly.
I’d advise against hoarding gold. In an economic breakdown, gold is a poor commodity. It has little trade value except at the governmental level.
Let’s say there’s an economic collapse all the way back to barter. Your kids are hungry, so you go down to the weekly swapmeet at the Wal-Mart parking lot (the Wal-Mart itself was looted and burned at the start of the crisis). As you arrive, you spy a friendly-looking guy selling fresh eggs out of the back of a wagon.
“Eggs!” you say. “I’ll take six dozen!”
“No problem!” says the Egg Man. “I can set you up. And what have you to offer in trade?”
You flip a gold Krugerrand onto the Egg Man’s table. “Gold,” you say. “This ought to cover six dozen eggs, and another six dozen every month for the next six months or so.”
But Egg Man isn’t smiling. “Sorry, sir, but I don’t take gold.”
You are dumbfounded. “What? Why not?”
“No use for it,” he replies. “Chickens can’t eat it. I can’t eat it. The generator I use to keep the incubator warm can’t eat it.” Seeing your disappointed face, he tries to salvage the deal. “Got any fur to trade?” he asks hopefully. “I can use fur. Squirrel, rabbit, cat, anything so long as it’s warm. Winter’s coming and my kid needs a coat.”
But you have no fur to trade. “Sorry,” you reply. “All I have is gold.”
“Can’t help you, then,” says the Egg Man sadly as he turns away. “Maybe next time.” His security guard, a kid with a bloody bandage over one eye, fingers the stock of his shotgun significantly.
You go home with no eggs.
Don’t hoard gold. Hoard trade goods: cigarettes, whiskey, generator parts, tools, ammunition and reloading supplies, needles and pins, canned foods, can openers, clothespins, wool, blankets, furs. Gold is essentially worthless in a barter economy.
How about this: In 2010 a renewed right wing sentiment will sweep the Socialists out of office and obama becomes a lame duck one-termer. Most of the crazy stimulus money, which has yet to be spent, will not be. The economy, which is currently showing some bright spots, such as a normal yield curve, lessening unemployment and continued low inflation, will slowly come out of its doldrums and although the stock market may not roar upward out of some irrational exhuberance, will show modest realistic gains in the short-term due to all the cost-cutting that has taken place through lay-offs and restructuring.
I see this scenario as more probable than food riots and stone-age living.
Lightbulbs? I'm already hoarding them anyway. Oh, wait, in a barter economy we won't have power
Bump for later.
Plenty of ways:
Hard assets in the USA (land, housing, gold, tools, guns, ammo, food, etc.).
Foreign bonds and stocks - especially those that pay a dividend that you can use
Physically move your money into foriegn banks in foreign currency (this is what Argentinians did)
When a government issues bonds NOT in its own currency, default and rampant inflation are coming SOON.
How? Try getting a briefcase with $100,000 in Euros or Yuan through security at an international airport and watch what happens. PROTIP: Bring your attorney along -- it's a timesaver!
Foreign bonds and stocks - especially those that pay a dividend that you can use
Physically move your money into foriegn banks in foreign currency (this is what Argentinians did)
When a government issues bonds NOT in its own currency, default and rampant inflation are coming SOON.
How do I do this?
How do you
Not lightbulbs — CANDLES. In the aftermath of the ‘94 Northridge Earthquake in LA (Richter 6.6+), my wife and I learned how valuable candles are. You can never have enough.
Hoard candles. Or better yet, hoard BEES and learn to MAKE candles. There’s a reason the name “Chandler” is so common...
Come on - use some imagination.
Drive to Mexico or Canada with all of it in the trunk. Take 10 trips over a year with $9,999. Convert your $ into gold or platinum ($100,000 is only about 100 coins) OR do it legally, Wire transfer to a foreign bank. You will pay a few % in a transfer fee but it will get there.
Yeah, we have candles. In 2006, this part of the country had a couple massive storms, one in July and one in December, that had us all out of power for quite a while. Candles, flashlights and battery operated lanterns are never far from reach even if the electric company has been ruthless about tree trimming ever since.
Definitely more likely than, and preferable to, the “Mad Max” scenario.
I made 10% on the stock market last couple months and bailed back out.
As a senior, I’m motivated by fear far more than greed.
I’m more than happy to leave money on the table if I’ve made 10% on a market cycle.
I bailed last year when Baraq pulled ahead of Hillary and there was a good chance he’d be elected, dollar avgd back in when things looked “hopeless” in spring (watching very carefully in case things didn’t turn up).
I wouldn’t be surprised to see another cycle opportunity like that in the next 12 mos. I believe we’re in volatile times.
I’ve got some money in gold ETF and TIPS also.
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