Posted on 11/27/2010 9:48:57 AM PST by RandysRight
Germany learned many financial lessons during the first and second world wars. One lesson that they have not learned is that safe deposit boxes are not safe. When the United States outlawed the personal ownership of gold under the Roosevelt administration, the government went through people’s safe deposit boxes and confiscated any gold that was found. As shown below, the German people are getting ready for bad economic times in the European Union.
“Germany cannot keep paying for bail-outs without going bankrupt itself,” said Professor Wilhelm Hankel, of Frankfurt University. “This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings.”
Axel Weber, Bundesbank chief, discussed the possibility that Portugal and Spain would need bail-outs when he said that EMU governments may have to put up more money to bolster the fund. “€750bn should be enough. If not, we could increase it. The governments will do what is necessary,” he said.
Mr Weber also said that a “worst-case scenario” of triple bail-outs would require a €140bn top-up for the fund. This assurance is unlikely to soothe investors already wondering how Italy could avoid contagion in such circumstances.
With all of the financial news centered on the collapse of over half of Europe, the world is putting their trust in the United States dollar and stock market during this past week. Safety is relative, especially when people are ignorant of how the bailout of the EU will be accomplished. The international monetary fund (IMF) will be overseeing this bailout of failed countries in the European Union. This means that member countries of the IMF and not just EU countries will be footing the bill. Germany’s share will not be the largest share in this economic collapse.
Let’s look at the IMF’s website to see who will be footing the highest share of the European bailout:
The IMF’s resources come mainly from the money that countries pay as their capital subscription when they become members. Quotas broadly reflect the size of each member’s economy: the larger a country’s economy in terms of output and the larger and more variable its trade, the larger its quota tends to be. For example, the world’s biggest economy, the United States, has the largest quota in the IMF. Quotas, together with the equal number of basic votes each member has, determine countries’ voting power. They also help determine how much countries can borrow from the IMF and their share in allocations of special drawing rights or SDRs (the reserve currency created by the IMF in 1969).
The people across the world who are rushing to put their wealth into the US dollar are like lemmings running over the cliff. As we print more money to bail out Europe, our currency is further devalued and our wealth is redistributed to everyone else. When Americans who are working to achieve their dreams wake up to realize that they have been duped by the Federal Reserve, World Bank and International Monetary Fund, we will start our long path back to freedom if we have the courage.
David DeGerolamo
NC Freedom
working to achieve their dreams
Hah! Am I dreaming to hope for a roof, a little heat, and a little food? Am I one of those “greedy old people?”
Looks like you should have been paying attentions when they voted in these stupid programs hat were supposed to take care of you when you got old.
Didnt you stop to think it was your grandchildrens money you were voting yourselves?
“...the government went through people’s safe deposit boxes and confiscated any gold that was found.”
.
Will a repeat of that grand theft be possible? That would be one way to shore up the dollar.
Looks like you should have been paying attentions when they voted in these stupid programs hat were supposed to take care of you when you got old.
Will you explain to me how working hard, saving, living frugally, doing our best to live simply and take care of ourselves has to do with dependency on government programs like Social Security, and medicare which were in place before we had any say?
I was a stay at home mom. I’ve earned approx $10/mnth from social security if I ever claim it.
I left the military when my first son was born, 1978. I could have collected unemployment benefits. I refused that government handout. I thought it was immoral to take money I hadn’t earned.
This responsible adult never voted for anything that would take a dime from my kids or anyone else.
I’m an old woman. I’m cutting my own wood, taking care of our 20 acres, and have my own garden. I’d rather starve than look to the government.
“Is life so dear, or peace so sweet as to purchased at the price of slavery? Forbid, Almighty God, I know not what course others may take; but as for me, give me liberty or give me death.” Patrick Henry
I’m old enough to remember that being taught in school. I’m no Patrick Henry, but that thinking is my blood.
There isn’t going to be an economic collapse in Europe or in the US. Economic collapses are caused by the destruction of productive capacity and supply by war, drought, famine, etc. None of that is going to happen. Hyperinflation is also caused not just by printing money but by destruction of supply in the economy. Hyperinflation isn’t going to happen either. We will see incrementally higher inflation in the US than we would have seen otherwise without all the money printing that is going on. But that incrementally higher inflation may end up being only about 3% inflation, compared to 0 or -1% inflation without all the money printing. Again, that is because there is so much productive capacity and supply of goods and services in the world, primarily caused by advancing technology and productivity.
I’ve noticed how much the financial media tends to look at the world through economic history. People keep looking back at the 1970s for a guide about where our economy is going. But today is nothing like the 1970s, because the world economy has globalized, and the powerful labor unions that monopolized the labor markets in many industries back in the 70s have lost most of their members and most of their power. The vicious cost-push inflationary spiral that we had in the 70s is gone now. Workers are much more productive in all industries than in the 70s and this also reduces the need for workers and diminishes the bargaining power of unions and all workers in our economy. That all works against the return of serious inflation, so except for gasoline and other oil products, I don’t see inflation moving above 4% in the rest of this decade.
In general, people in Europe and the US have become too pessimistic and are not seeing the benefits of advancing technology and increased productivity that has happened in the last 15 years. This is typical of a recession when people get too negative and don’t see the recovery arriving until it is at full speed. It’s the exact opposite of what happens during boom times when people get too optimistic, bankers make lots of foolish high-risk loans (e.g. Ireland), and nobody sees the next recession arriving until too late. My view of what we will happen in the US economy in the rest of this decade is a muddling through All-the-Above Scenario: stronger economic growth than expected now, budget cuts, tax increases, higher inflation (but no more than 4% at any time), higher productivity, very cool rapidly advancing technology in all industries, 7% unemployment, and not the economic disaster that some people expect today.
Apart from Germany it’s hard for me to see any EU country whose economy is on any kind of sound foundation.I’d be surprised if the Euro lasts more than another couple of years....if that.
I would assume that gives it great survivability.
Perhaps that was the thought going in?
At that time many will turn away from the faith and will betray and hate each other, and many false prophets will appear and deceive many people. - Matthew 24:11
So it’s not your fault then, is it?
Of course, I was not born when these programs were created... so it certainly isnt my fault either
I wonder who we can blame for spending their grandchildrens money?
Good answer!
Have you signed up with 1rudeboy yet? Your view is very positive.
At that time many will turn away from the faith and will betray and hate each other, and many false prophets will appear and deceive many people. - Matthew 24:11"
The quoted verse is contradictory of the one world order, in fact, it appears to foretell chaos...not unity.
The current downturn did not start in 2008. It started around the turn of the millenium. It was papered over by a debt bubble that has burst. IMO, gov't CPI calculations are the worst kind of farce. Removing the gold peg made it much easier to hide what they were getting ready to do.
Maybe you can tell us where you see impetus for a sustained US recovery coming from? Specifics, please.
Compilation of charts from this site: www.pricedingold.com
“So it’s not your fault then, is it?”
“I wonder who we can blame for spending their grandchildrens money?”
Maybe, you should look in a mirror.
I was going to add, “And then shoot the bastard, but that’s probably not very nice, so I won’t.”
American and European banks have a cross-pollinated financial system, which means we are connected at the hip.
The IMF is a World Tax system from which the banking elites have used as their own personal insurance policy, derived from wealth stolen (money-laundered) from US citizens since 1945.
Yes, Europe may be bankrupt on paper, but so are we. But who cares? (except China)
As long as we own the best printing presses, paper and ink - and an iron-clad Constitution - we'll be ok.
HEY! The game is on!
I wasn’t born when these program were put into place, so your comment is merely stupid
your entire argument seems to be getting stupider
who was it that was alive and voted for these things?
did you do anything to stop them 40 years ago?
I was not alive during Franklin D. Roosevelt’s reign. Therefore, I could not vote or protest social security.
I was in highschool when John F Kennedy was assasinated, therefore I was not old enough to vote against Lyndon Johnsons’ Great Society.
At this point, finding someone to blame is pointless.
Doing everything we can to undo the damage is the way to go.
Maybe you should blame your mommy and daddy for voting for it and actually bringing you into this imperfect world.
look at past history. Man is imperfect and has never succeded in making things perfect.
Blame mankind, or blame the dam feds or better yet blame Satan
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