Deflationary Economic Depression 2010, Ready Or Not Here It Comes!

The Market Oracle ^ | 12-6-2009 | Darryl R Schoon

[blam]

Deflationary Economic Depression 2010, Ready Or Not Here It Comes!

Economics / Great Depression II
Dec 06, 2009 - 08:31 PM
By: Darryl R Schoon

Much has been written about the Great Depression and the present crisis. There is much that is similar and some that is not. The differences explain why events have unfolded differently. The similarities explain why the end will be the same.

Deflationary depressions occur after the collapse of large speculative bubbles. The collapse of the 1920s US stock market bubble, then the largest bubble in history, caused the Great Depression of the 1930s. The collapse of the far larger dot.com and US real estate bubbles will cause the next.

WAITING FOR THE OTHER SHOE TO DROP
A daisy chain of disaster

The present economic crisis is similar to that of a patient who has suffered a massive near-fatal heart attack. Presently surviving only because of constant care and unprecedented levels of medication, it is the unprecedented levels of medication that will ultimately cause the patient’s death.

The amount of monetary stimulus keeping the global economy afloat has never been greater. Two of the largest economies in the world, the US and Japan, now have interest rates close to zero and, along with the UK, are engaged in “quantitative easing”, a monetary phenomena akin to self abuse, i.e. self-stimulation.

Extreme measures of monetary stimulation via money printing are necessary to counteract the deflationary pressures set in motion by declining asset values against which massive amounts have been borrowed. But, in the end, creating money out of nothing will reduce the value of money to exactly that—nothing.

This is the path upon which governments and central bankers have embarked. Fraught with danger and pitfalls, it was not their first choice—it was their only choice—and the rising price of gold is a measure of how far on the path they have traveled. Just prior to the collapse of the dot.com bubble, gold was $300 per ounce. Today, it has exceeded $1200.

It is not a coincidence that as monetary debasement has reached unprecedented levels the price of gold has also reached unprecedented heights. As money printing has increased, so, too, has the transparency of its fraud.
Money printed in increasing quantities becomes increasingly worthless; and, gold, as an intrinsic store of value, reflects the accelerating debasement of money in its price.

Not all believe, however, that gold is a function of monetary debasement.

[snip]

[grey_whiskers]

There will come a day that you will trade all you have for a roll of toilet paper.

I'm stocking up on TP, olive oil, wheat, and alcohol.

I keep draining the alcohol reserves though, darn it. /sarc>

Cheers!

[o_zarkman44]

I envy everything about your remote location except the -37.

Some day I will return to Alaska, during the summer :)

[o_zarkman44]

Salt, sugar, rice, coffee, all good items to have plenty of.
I have a lot of salt and sugar in storage. Great for curing meat.
Get the non iodized variety for curing.
The small propane bottles are expensive but handy. One trick is to buy a refill kit and refill them from a larger cylinder.
However I have found that some of them tend to leak down. Look for screw on caps that will contain the pressure until you are ready to use them for your camp stove or whatever.
Scouting has taught us well.

[Ghost of Philip Marlowe]

My point was that sellers may not pay out according to the value of the silver content.

It’s just one of the points that survivalists make repeatedly on the survival boards.

Just something to think about.

[blam]

"One trick is to buy a refill kit and refill them from a larger cylinder."

That's a good idea...I'll have to do that. I've had the small bottles leak down too.

[WVKayaker]

The small propane bottles are expensive but handy.

I have them strictly for barter. I also buy camp stoves at garage sales, and have over 100. They are good for scrap if nothing else, but they can have great value to someone without electricity. Energy will become a strictly rationed item, and I would imagine they will take care of SEIU people before they check the voter roles for R's and I's. Of course, we all know that will never happen that way.

I have a Ford van that runs of of LP. I have several large tanks buried, and the "filling station" set up. I'm pretty well prepared, but adding daily.

Did I mention I am well armed and securely guarded by dogs?

[marychesnutfan]

“I am hoarding coffee and sugar as barter items.”

Add to that tea leaves and SALT and you can get along and trade them for just about anything. Look at the Civil War and WWII, in both those 4 items were worth more than anything.

[familyop]

"I just built a root cellar - not a bad thing to have out here in the Alaskan Bush. I have a feeling that we’ll be eating a lot of cabbage, potatoes, carrots, and turnips in the upcoming years."

That's good idea. ;-) Be really good to the Inuit folks, too. I hear that they bring in most of the meat up there.

I live on the central Rockies and away from the nearest electric lines. We like to experiment with low-cost greenhouses among other things (about 9 months of cold weather per year at this elevation with high winds for about three months...snows in July sometimes). ...no whiteouts, yet...only little snows most days now, and there are lots of sun days each year.

[familyop]

Yeah, inflation: a gigantic, hoarded pool of money with manufacturing and men hated so much, that it won’t be put to work as capital. I don’t really care as to whether we go to the big default quicker with a high international dollar or a little slower with a low dollar. Either way, there won’t be any borrowing or buying from those of us who are fed up and ready for better leadership of every kind and at every level.

[familyop]

"Ammo?"

LOL! Yep. Feast your eyes on the following, and imagine 730 grains moving at 2700 fps.

12 Ga. FH Slug Tester

[stylin_geek]

bookmarked