Posted on 10/19/2014 10:20:36 PM PDT by eekitsagreek
If you go to different websites or listen to certain radio hosts, there is a lot of discussion of "economic collapse", "dollar collapse" or "petrodollar collapse" and so forth. They make it sound like we will end up like the Weimar Republic with people carrying their worthless money in wheelbarrows.
I am not an economics expert (nor do I play one online), but are we really heading for collapse or is it all a bunch of talk? I know we have a huge debt problem, but we keep printing money. How long can this keep going? I am confused!
Any insights from those knowledgeable in economics or finance is appreciated.
Obama, his party and the RINOs were saved by fracking, I suppose.
Like everything else, give it some time. The writing is on the wall, and you are not a prophet, as is no one else. But look at the wall.
It will happen if Ebola goes hot.
It would not surprise me to see a major War start, perhaps even a “World War”, all due to the economic policies we are seeing at this time, but perhaps that's just my own personal opinion.
Like everything else, give it some time. The writing is on the wall, and you are not a prophet, as is no one else. But look at the wall.
Yep. Our debt is like straws on a camel’s back. All it takes is one major event. Sooner or later, it will happen.
If shortages begin to happen in any essential sectors, prices will shoot up and leave large segments of the population unable to keep up. Anything that is unexpected could cause the gov’s ability to manipulate things to fall apart....disease, panic, violence, terrorism, extreme weather, it could be anything. The government is out of tricks
If the paid votes for the democrats stop receiving monthly top ups on the EBT cards will they still vote demonratic?
If dems lose big time in November, watch the fun begin.
The Republicans aren't giving them any reason to switch their vote. If they're fed up, hopefully they'll stay home.
.........my dad was born in 1913 and that year is the year the chart below STARTS with one dollar being worth one dollar.
As you can see, you now need $23.27 to buy in 2012 what one dollar would buy in 1913.
Since Obama was elected the dollar has lost 28% of it’s value (circa 2008). So, the real number is higher than $23.27.
If your income is not matching this decline, then just plain old “living” (absolute necessities) becomes increasingly difficult. On a bumper sticker, the treadmill you are on is going backwards not forward.
How long can this go on? I think the honest answer is that no one knows because we are in uncharted territory.
What are the consequences? We need only remember soup lines in the so called Great Depression, Detroit today, many municipal bankruptcies NOW, our smallest military in 65 years and so on and so on to see that there are, eventually, severe consequences for fiscal insanity as practiced by big spenders e.g. Democrats and Republican E’s.
Amount it took to
equal $1 in 1913
1913 $1.00
1920 2.02
1925 1.77
1930 1.69
1935 1.38
1940 1.41
1945 $1.82
1950 2.43
1955 2.71
1960 2.99
1965 3.18
1970 3.92
1975 $5.43
1980 8.32
1985 10.87
1990 13.20
1995 15.39
2000 17.39
2001 $17.89
2002 18.17
2003 18.59
2004 19.08
2005 19.73
2006 20.18
2007 20.94
2008 21.57
2012 23.27
Read more: The Shrinking Value of the Dollar | Infoplease.com http://www.infoplease.com/ipa/A0001519.html#ixzz3Gf1KkhQV
I have a sickening feeling that the democrats in power will start a major war in order to have something external to blame the crash on.
The crash is coming, war is also coming....
Same reasons too. We sold off the family jewels to stave it off (outsourcing manufacturing). What else is there?
I like Greg Hunter’s videos.
The financial markets are propped up by Quantitative Easing (QE) Policy.
Pressures to end QE come from financial entities that actially make loans. There’s not much money to be made on a 2 or 3 percent loan. Loans are not being made as much as needed because the margins are too low. So properties sit empty.
New construction is very intense in certain cities because construction loans are practically free money. Construction companies can declare bankruptcy once they have their money. That is happening now as there is not much of a consumer market to buy the new construction so new homes are going to sit unoccupied or occupied by those receiving a subsidy from government (low income group) or become REO as banks will hold them rather than make low interest loans to consumers.
The lower tier local banks want QE to end; the upper tier (JP Morgan Chase, Bank of America, Wells Fargo etc. and investment banks) want QE to continue as it allows them to purchase government bonds at a profitable spread. Free money and free cashflow is their charm.
The result of QE is enormous debt for the United States, This debt can be duscharged via the Federal Reserve deciding to ‘delete it’. This would be a controlled bankruptcy for the USA but it won’t be reported that way,
Since most of the propping up is happening among agencies within the USA, it is a local affair mainly.
Other currencies? Who wants them? No other society has an economic model that is so attractive that their currency is in extreme demand. In other words there’s no good reason to dump US Dollars. Those that have find out what they traded it for was not so wonderful. America is a fortunate beneficiary that the global economy is in trouble. There are not so many greater alternatives.
Gold isn’t where it’s at. It’s just a yellow metal that’s a hassle to guard and provide security for.
It’s a race to the bottom.
But it can’t go on forever.
For areas that are experiencing building booms with no consumers to support them, we will see very low occupancy rates. Rents go skyhigh so we will see socialists call for rent controls. But rent control policies are very destructive.
Eventually voters will swing the pendulum away from democrats and their socialist talk. Voters who voted for all the socialism will sit home in a funk. Let’s hope a person like Ted Cruz can get into office and turn the economic engines on and steer the country where people can feel it moving to growth. That’s what happened under Ronald Reagan.
So we as Americans may avoid a predicted collapse because we are just damned lucky.
The collapse will come when the pressure to end QE becomes overwhelming. Ironically that will occur as a push for a better economy gets stronger. We note that if QE goes bye-bye, then the federal debt service obligation goes out of control. If QE stays, the economy will continue to sputter, backfire, and feel sickly...and the natives get restless.
There are several positive and optimistic scenarios of how to escape this current ‘malaise’ but will save that for later.
Temp jobs, no permanent work, low wages for high skilled jobs, 50 million out of work....
The only secure thing is trust God, all else is corrupt.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.