then i guess paying the EBT Nation will be considered key and essential where SS not so much...
Posted on 09/20/2015 11:30:44 AM PDT by Jack Hydrazine
Yellen has inherited a complete nightmare.
Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed.
There is a lot of speculation about why the Fed seems so reluctant to “normalize monetary policy”. There are of course the typical domestic issues that there is low inflation, weak wage gains in the face of strong job growth, a hike will increase the Federal deficit and then there is the argument that corporations that now have $12.5 trillion in debt. All that is nice, but with corporate debt, our clients are locking in long-term at these levels, not funding anything short-term. Those clients who have listened are preparing for what is to come unlike government which has been forced to shorten the average duration of their debts blind to what happens when rates rise, which will be set in motion by the markets – not Yellen.
The Fed is really caught between a rock and a very dark place. Yes, they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars to save money.
The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt.
By avoiding the normalization of interest rates (hikes), the Fed has encouraged government to spend far more than they realize because money is cheap. This will eventually light the fire under the economy helping to fuel the Sovereign Debt Crisis. There appears to be no hope for the Fed and they will be forced to raise rates only when they see asset inflation in equities. Then they will have no choice.
This is the worst possible mess and the longer they have waited to normalize interest rates, the worst the total crisis is becoming for they will have zero control over the economy and once that is seen, holy Hell will break loose.
Sell-off Yellowstone acre by acre and every other friggin’ unconstitutional federal park if necessary.
You know, you drive down the road and look to your left at right at all the cars, stores and 18-wheelers and it's hard to imagine that something could possible bring it all to a stop. It just doesn't seem possible (that's normalcy bias) - but without the free exchange of some trusted form of value, it does.
The market's gonna crash. September 13th and 14th, I heard it on FR.
When the SHTF, paying off debt will be the least of your worries.
Well put.
Normalcy bias is a killer.
And with Common Sense almost gone, it’s a nightmare.
Political Correctness will die almost immediately.
That depends on whether currency inflates, or deflates, and whether the cost to service the debt is pegged to inflation. When currency inflates, the debt is paid off with “cheaper dollars.”
This was the case before the FDIC.
Yeah, and we're seeing that in the EU now with fences going up and armored vehicles moved into place to stop the illegal muslim invasion.
And Y2K was the end of the world as we knew it. Bottom line, always be prepared. Low, or no debt, ample food and water, self defense imp!ements, know the skills and abilities of your neighbors prepare like any other disaster, earthquake, tornado,hurricane, wildfire, etc. Have a bug out plan and abug in plan. Always have a plan. We know not what comes our way on a day-to-day basis regardless of what the Fed does or doesn’t.
then i guess paying the EBT Nation will be considered key and essential where SS not so much...
If it goes totally haywire, debt collection and being a sheriff's deputy are going to be dangerous occupations. All that unsecured debt out there is not collectible without heavily armed authorities and debtor's prisons. Anyone suspected of being responsible for this cluster had better move to the bunkers.
I think the answer is rather obvious.
They are waiting for there to be a Republican in the White House to blame it on.
Watch. If a Republican wins in 2016, nothing will be Obama’s fault.
Could be - likely depends on who is running things. But then there are the vendors who like getting paid with something of value. The whole system will likely become totally discombobulated!
See post #4!
“Its the end of the world”
by R.E.M
https://www.youtube.com/watch?v=JsxavPANO8s
Every cloud has a silver lining.
Thanks.
I’ve hearing predictions of imminent financial disaster for at least the last 40 years.
It’s nice to finally have a target.
price rises at local major grocery in just the last few weeks...
bologna from 4.99 to 6.49
pet food tins from 39 cents to 50 cents
bbq chicken from $5 to $7.99
cookies from $5 to $5.99
perpacked turkey slices from 4.99 to 7.99
eggs from 1.89 to 6.79
and at the local diners,
omlette from 5.85 to 7.95
egg salad salad from 6.50 to 10.95
soup from $2.99 to $5.99 (and its less than half sized serving now too)
daily rice plate from 6.00 to 6.50 (with some added costs for certain items)
dog rawhide bone from 3.99 to 10.95
pre-wrapped sandwiches from 3.25 to either 4.99 or 5.99
so.... “when inflation sets in” ... is a misnomer
it is already very much here
but yes, it will probably get a whole lot worse due to the current regime’s destructive economic policies
lead and copper and brass
Government will initially commandeer all food resources to hand out to their pets... and when that fails or runs out, then prices will be set in DC... and when that fails, martial law is probable. None of this will slow down the looting, nor will government care to try. Baltimore was the example.
Once it looks imminent (there will not be a lot of warning), get away from any population center... be able to feed yourself and your family for a few months, if not longer... and be able to defend your supplies from those who would take it from you, including government. There is no shortage of 20th Century examples where FARMERS would have to watch their families starve to death while their government took their crops and supplies.
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