Posted on 07/04/2010 6:47:40 PM PDT by HearMe
The Worst Case Scenario (Someone Has to Say It)
"Finally, between now and 2012, we are likely to see another earth-shaking national embarrassment on the scale of the 9/11 attacks or Hurricane Katrina and its aftermath. This will demonstrate conclusively to all Americans that their government, even under a savior-figure like Obama, cannot, in fact, save them. "
The BP oil leak.
Deflation may happen...
but the government printing money is inherently inflationary.
There can be NO economic recovery until Obozo is removed from office......
He has intentionally engaged the self destruct button. It is a planned self destruction of the nation by traitors.
No. I believe it was Arch Stanton.
I concur. Dear Leader is the cause of most of our problems.
“Dear Leader is the cause of most of our problems.”
No, just the most obvious symptom.
The injection of so much money into the financial system re-inflated a market that was going down the tubes. since the sugar high is wearing off the market should naturally go back to what it was supposed to do and that was find a bottom.
I am big short on the 3 major indices......
With any “luck” I might emerge in decent shape but certainly not in the overall win column.
The change that Obama promised.
Read the Denninger article from this am. There is obvious (illegal) market manipulation going on. No one but Madoff (it seems) has gone to jail since the meltdown, and Madoff is a piker compared to the Ponzi schemes the Federal Govt have engaged in. We need grownups in government who will stop playing politics and prosecute everyone who created this mess, many, if not most of whom were in the government.
I agree. You cannot have a stable economy w/o a stable industrial base. Great tagline BTW.
Thanks. Hat-tip to Buffalo-Jack.
A lot of the deflationary predictions are based upon the perception that the demand base has changed significantly. Deflation on this massive a scale would have to be supported by a world wide decrease in consumer demand. This would happen first in the industrialized economies, which would reverberate back to the basic producer economies such as China, India and SE Asian countries. With decreased demand for exports these economies shrink, leading to political instabilities and weaker economies in themselves. Western economies will be faced with ever greater wage competition which will lead to higher unemployment decreased income and less consumer demand. A vicious cycle that is hard to break. World finance will seek out the most secure haven, which will be the US dollar. Cash will be king.
Buy tangibles.
I think it’s too early for this to fit Praechter’s theory, but here goes:
The global financial institutions are built on the premise of ever-increasing scarcity insuring ever-increasing prices, offset by ever-increasing efficiencies. This is not, nor has it been the norm throughout human history. The scarcity is brought about not by diminishing natural reserves, but by an ever-increasing population. But something happened around 1980, which has been ignored by the media, obsessed with justifying birth control, abortion, and statism:
The number of babies born in the world began to decline.
The population of the Earth is growing because the growth in the population of adults still exceeds the decline in the population of babies. The population of 40-year-olds, for instance, is still soaring from the unprecedented population of growth of 40 years ago (which, incidentally, was caused by anti-hunger crusades preventing natural hunger-induced infertility).
The population of elderly is exploding, perhaps tenfold in a generations’ time, as life expectancies surge.
But make no mistake, the population of babies is declining. Not just in Europe, and America, but in the Muslim world, India, China, pretty much everywhere outside of sub-Saharan Africa. And now, those would-have-been babies from the 1980s are in their 20s, their child-bearing years. The babies that weren’t born in the 1980s are now not having babies of their own. The trend is increasing. The global population which was once growing by 3% per year, is now growing at 1% per year. By 2040, it will likely stop growing. By 2050, China’s population will shrink by an amount equal to the population of all of New England. Cities in Europe will become ghost towns. The Earth, which grew from 3 billion to 6 1/2 billion in the last 40 years, will barely make it to 9 billion, then start to decline.
Prediction: whoever can man a factory, and supply raw materials will own the factory. Forget your stocks and bonds. The only investment that matters is next of kin.
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