Posted on 02/17/2009 8:58:56 AM PST by helpfulresearcher
As liquidity is running out and credit is drying up, many nations are in a chain reaction realizing the hot air on which their financial and political systems stand. In any case the dreams of Obama, the RINOs, and the Democrats will become painfully deflated as the era of big government comes to a close.
All bubbles come to an end when the liquidity is no longer available. After a certain point the bubble cannot be stopped by outside forces, but it does stop when the available resources are no longer available. It is like a fire that rages until the fuel is spent.
By all these measures, we have a Government Bubble that is popping.
(Excerpt) Read more at dagnyd.net ...
Blog pimping, are we?
-~~Ludwig Von Mises
“Several brokerage houses tumbled; blue-sky investment companies formed during the happy bull market days went to smash, disclosing miserable tales of rascality; over a thousand banks caved in during 1930, as a result of marking down both of real estate and of securities; and in December occurred the largest bank failure in American financial history, the fall of the ill-named Bank of the United States in New York.”
~~"Only Yesterday: An Informal History of the 1920’s" by Fredrick Lewis Allen
Wow. Great read.
There are several blog pimps posting all sorts of crap lately. I was under the impression this was frowned upon. Where are Moderators?
I agree with your comment about blog pimps, but this was a good read.
I agree with your comment about blog pimps, but this was a good read....”
Yeah, I almost regretted my post. Almost.
Let them pimp their blogs. If the blogs are any good we'll follow them, if not we won't. That simple.
In any case, I'm happy to see these people as an alternative to the liberal MSM.
Thanks for the post.
“By all these measures, we have a Government Bubble that is popping.”
No, what we have is government using this crisis to form a “national security force” to deal with the perceived violence that the media will soon report on.
Then we will see the suspension of term limits for the President. Then we will see the suspension of the second amendment.
Then we will see Communism.
I think the dramatic increases in worker productivity staved off Burketts predictions by a couple decades. It’s here now. I read that again last month and it is still a good read if you ignore the dates.
DITTO!!!!DITTO!!!!!DITTO!!!!! Finally someone on FR posted an article that hit the nail on the head!!!! No matter who is POTUS, numbers don’t lie. The world has a finite amounts of cash on hand. China, Japan and Germany has huge reserves of cash that they sooner or later need to spend on their own economies over buying more US T Bills. The collapse of oil prices wiped out the ability of Saudi Arabia and Persian Gulf Arabs to buy US T Bills. Current bailouts put US needs at 13 trillion, and the looming collapse of commercial real estate plus credit card markets threaten to add another 7 trillion plus. Where is the feds going to get money to cover the banks from these additional losses? The answer, is nowhere because the world is tanked out. Print more dollars??? Inflation will be the result. Don’t print dollars and let the banks collapse, then social and financial chaos. Obama supporters don’t realize that they did not do their guy a favor by helping him to win in 2008, because whoever wins in 2008 faces bad and badder choices when confronted with the numbers on our debt ridden and tanked out borrowing economy. The US has to go thru a depression so prices will drop, people will stop consuming and start saving, and once the bottom is reached, people with money will buy the bad assets and the recovery can restart. But during this time period many people will be unemployed, and families will have to help family and friends. There will be crime and rioting. People must go into survival mode. The Great Depression of the 1930’s shaped the post WW2 generation, it will be interesting to see what type of society emerges from this Depression.
I recall similar predictions from others that the collapse would occur around 2001 - 2003. Timing was off, but the piper is demanding to be paid.
Great quote from the article
“....It may seem odd in this political climate to say big government will soon be a thing of the past, but it is. Like a decapitated chicken running mindlessly down the road, it just hasn’t stopped moving yet....”
Are we in a Depression? Or, are we going to have one? About two years ago when I posted that things were going to collapse, I was just about run off of Free Republic. What gives? Things are going to head up after about 3-5 years. It will be okay now.
You know deep down the government will once again take action to ‘help’ the situation.
Rather than allowing a ‘Darwinian flush’, they will continue to ‘saddle a dead horse and try to ride it’!
Like in the Soviet Union or former DDR, these sort of schemes can live on for decades.
The belief is that as things fall apart people move away from big government. What if the government, schools, and the media proselytize that we need the opposite, more government? What if things don't fall apart right away but actually kind of do OK for some time? What if the real consequences are no “bubble” but rather market inefficiencies that are created with every subsidy, mandated loan to the unqualified, or investment is some politically motivated project? What if the real damage isn't short term but rather long term, where like in Europe (They also haven't imploded) the socialized economy simply creates a sort of economic malaise, an economy that is going nowhere fast?
I don't expect an implosion, just a slow death where our economy not unlike those in Europe becomes inefficient, unadaptive, and stagnant punching out a whopping 2% growth in good times. Where people are happy that they have stability and security, but are no longer masters of their own destiny and live with economic stagnation.
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