Posted on 05/18/2010 10:54:46 AM PDT by Errant
We have crossed the Rubicon and events in the world economy are now likely to unfold in a totally uncontrollable fashion. Clueless governments still don’t understand that it is their ruinous actions that have created a credit infested and bankrupt world. They will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money. The consequences are clear; we will have hyperinflation, economic and human misery as well as social unrest...
(Excerpt) Read more at matterhornassetmanagement.com ...
The real question is will there be a silver lining that brings about a return of honest money and free markets, or will we sink further into fascism?
"The adjustment period will be very long and will involve economic and human misery, leading to social unrest and major political change. It will be a horrible experience for the world during this extended period of adjustment. But it will be like a forest fire that clears out the deadwood and creates the conditions for strong new growth.
Once the new era starts it will therefore be from a very much lower level and individuals will be rewarded for hard work with little or no social security safety net.
Credit will only be granted for sound capital investment projects, not for consumption or speculation. Ethical and moral values will return and the golden calf will not be worshipped. But before that, the period of readjustment will be very long and extremely difficult for the whole world."
ALEA IACTA EST
Domine Deus noster, miserere nobis.
Last time something like that happened, it lead to the rise of the Nazis and the Roosevelt administration. So the answer is, if this happens, No.
“The budget should be balanced; the treasury should be refilled.
Public debt should be reduced.
The arrogance of officialdom should be tempered and controlled.
Assistance to foreign lands should be curtailed lest Rome become bankrupt.
Instead of living on public assistance, people must learn to work.”
~Cicero in 55 BC
The die is cast and we will wear it around our collective necks until it is broken...
Really? Based on what?
Meanwhile, I wonder about these sites that pump gold sellers like goldswitzerland.com.
What are they taking in exchange for gold right now? The dollars they know are going to be worthless??
It’s sheer speculation on his part. I tend to agree to an extent.
What are they taking in exchange for gold right now? The dollars they know are going to be worthless??
Just like stock brokers, they make a profit from each trade/sell. With the profit in dollars they can then exchange dollars for their own gold/land/food/salaries/pay mortgage note and so on.
Exactly my point. Just like anybody else.
Just like, butchers, bakers, teachers, doctors, pipe-fitters, jet engine designers...
Every hour they trade for their efforts for something of value in return.
When tshtf these people will either have a lot of gold, or a lot of dollars...and then what makes them any more likely to be able to buy food or bullets then?
Just seems very circular.
......But it will be like a forest fire that clears out the deadwood......
This statement begs for a definition of deadwood.
Is deadwood the feral black population of American cities that has given up working or is it the illegal Mexican populations of Arizona and California and Tennessee and North Carolina. Are the Islamic thugs who burn and destroy7 Paris the dead wood or is it the retired Greek 53 year olds.
Before the fire begins, it seems wise to get a handle on what will burn
deadwood = anything of paper... :)
Goldbug ping
“Adjusted for real inflation (as per shadowstats.com) the 1980 gold peak in today’s prices corresponds to around $7,200 today. So gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.”
“We had been expecting gold to start its acceleration in March 2010 and this is exactly what is happening. We expect the move to be relentless during most of this year with very few major corrections but with high volatility. Moves of $100 in one day could easily happen.
“So gold is likely to make a top in the next few years between $5,000 and $10,000.”
Mail me to get on or off the Free Republic Goldbug Ping List.
If central banks continue monetizing gross quantities of debt, such an inflationary scenario is not impossible.
Personally, I've some accounts which hold a certain, stable allocation in GLD, while playing the dips and peaks with the 200%-Gold UGL fund. You get double-oomph on the rallies that way -- and you're not afraid to sell in profits, because you've still got your core holding in GLD. I've found it an effective way to trade this Gold market.
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