Posted on 09/01/2010 6:45:22 AM PDT by blam
My problem, though, is that he is not the only one saying this. There are alot of better known financial commentators stating the same scenario in the same timeframe. Even sunshine pumper Tony Robbins has a youtube video out warning people of a large correction around the first of the year.
I don’t think people need to be building bunkers, but it never hurts to be at least a little prepared for something crazy.
I generally agree with you... and I generally believe that large swathes of the global fiat currency and trade system is facing the abyss...
THe idea in diversification that smarter people than myself are following is based on rebuilding the import/export Letters of Credit system in the parabolic hyperinflation just before the crash, the crash, and then the long “day after tomorrow” as the world of finance and trade start rebuilding from scratch....
DIversification of currencies and commodities that will survive as letters of credit... in banks that will survive through government interventions to protect the banks’ owners/bondholders...
The rub... any individual/group with less than a US$ 10 digit net worth won’t survive long enough to diversify....
The cocaine cartels used to deposit funds in Manuel Noriega’s banks as a safe haven... and that worked, until it didn’t.
Medieval trade networks and guilds throughout Europe and the Middle East used to deposit funds in Florentine and Venetian banks.... that worked, until it didn’t.
QE2 will be about setting up private investors for a collapse, to prepare the power of the state through the threat of the barrel of the LEO gun to force consolidation of wealth and production... into the hands of the state and banking industry....
/end of rant
A country like Canada will have their export markets, and their internal consumption demand collaps ein short order after the collapse of the US Dollar or the Euro or whatever currency blows up first....
However, Canada can feed itself... (on a greatly reduced menu ) Canada can keep the petrol and electricity flowing... (on a greatly reduced level of consumption) and Canada can maintain minimum societal cohesion to weather the storms.... (under wartime rationing systems)
Hope we are neighbors!
The writer is absolutely correct here... under current banking laws...
Read up on tier 1 and tier 2 capital reserve requirements to better understand the problems we’re facing.. and the problems Japanese banks have been facing for 18 years...
Step 6 is based upon the fact that dead money has to be parked somewhere that is risk free... The Fed is the only place in the Western World where that is the case. 0.25% interst on the money parked at the Fed is still better than 0% interest if left on the balance sheet... and the 2.5% 3 year is still better when the private sector has no ability to qualify for loans... and default risk will be above loss ratios that are mandated in capital reserve requirements....
This would prevent bank runs by itself I think. Why withdraw your cash if you can't use it?
One nation under Banks, with slavery and tyranny for all.
Lots of people upside down in their homes. Retirement accounts falling apart. Sky has fallen on a lot of people and continues to get worse every day. Kinda difficult running a business when you realize that business will probably not get better next year. You either change your business plan or you are gone tomorrow.
Even if you do not normally drink, alcohol is good to have in quantity. It is a disinfectant. It can be used as a fuel. It can soothe a sore throat. It is an excellent barter commodity. Plus, sometimes a shot of whiskey really does help calm the nerves; good to have in a high-stress situation, like surviving an economic collapse.
bumpty bump
No doubt! I just hadn’t thought about it.
Vodka and bourbon ought to due. Better check out some liquor ads this weekend. Probably don’t need the expensive stuff, 80 proof is still 80 proof!
Thanks. You’d make a good neighbor ;D!
Right you are.
Economics is heavily influenced by peoples perceptions.
I think a lot of our current problems are the direct result of the Obama team continuously talking down the economy for the first seven or eight months after his inauguration.
He scared the hell out of people so they quit spending... a self fulfilling prophecy.
When optimism returns the economy will improve.
I’m not saying things are good but I hate doomsayers like this author.
Thank you
The writer of this article clearly explains the SCAM that the FED and the crony banks that run the FED are using to off load their toxic waste onto our backs. This will end badly. Our government no longer represents us and will not hold these guys accountable.
It is not a question of “if” only “when” they succeed in crashing our economy by driving us into bankruptcy. The 2010-2012 elections may be the last chance to fix this mess before we go over the financial cliff.
I thought Fannie and Freddie took care of that problem and on top of that we had a trillion dollar TARP. Wha' happened?
Was that just more smoke and mirrors to put off the inevitable.
My personal opinion is this was all planned by the Left going back to the creation of the Federal Reserve and then CRA I and II, Fannie and Freddie, and the rigged financial collapse Sept. 16, 2008. The goal is a global fiat currency.
Destroy all that presently exists and rebuild on a socialist global basis. The Left has had that as a tactic forever. The Cloward-Piven strategy (overwhelm the system with instant unmanageable demand) is just one avenue of this.
Then he needs to learn to write a LOT better... He claims the toxic assets were sold to the FED, but then just a few sentences later claims they weren’t.
I’m not denying the existence of the toxic assets; what I am denying is any logical path in his argument. You cannot make a claim and simultaneously deny that claim and state your conclusions are correct.
Thank you neighbor ;D!
Ugh! Due = do.
The toxic assets were sold to the Fed,
http://research.stlouisfed.org/fred2/series/WRESBAL
in Billions:
2006-03-08 2.796
2010-03-10 1175.389
That 1.2 Trillion is now on bank balance sheets sitting in reserve accounts in the Federal Reserve or the banks bought US Treasuries...
The original author is correct in his writings, he is just jotting down his thoughts in financial shorthand....
If you would like but they have no intrinsic value and are a worthless hedge. The DeBeers company in South Africa used to have a monopoly on diamonds but gradually diamond shafts were discovered elsewhere, most recently in Russia. In order to keep the price artificially high, DeBeers agreed to buy all diamonds at the price they had previously been selling for. At the time, so long ago that a billion was still a very high number, DeBeers had two billion dollars in cash on hand. They seemed to be able to easily handle it. However, in short order they had no cash and were in debt.
Since then science has shown us how to make zircon with is indistinguishable from diamond even by the experts. The Russian Mafia has taken over the Russian supply, making that an iffy proposition at best.
Bottom line, if we have the global financial meltdown that is predicted diamonds will be worth nothing. For that matter, neither will gold or anything else have any monetary value. If there is no money what will you trade those items for? If a new global fiat currency is created it will have a declared value but it won't have any relationship to anything.
People bought gold and other things because they had a value in relationship to the US dollar. If the dollar was weak or if inflation was rampant, people bid up the price of gold to keep pace. You never (rarely) make money on gold, you just keep pace.
Back when all the concern was about our "trade imbalance" and free trade I made the point that countries don't trade with each other, individuals and companies do. In order for there to be a transaction each must be satisfied, so where is the imbalance? I was told that the problem was in the Current Accounts, or currency exchanges between countries, and that if all our markers were called in we would be up a creek. I said that we were protected by financial MAD, mutually assured destruction. Why would China, or any other country, destroy the very thing they had so much of, the US dollar? They would be cutting off their nose to spite their face.
It never dawned on me that our own government would do the same thing, destroy the US dollar, along with the rest of the world's currencies.
I recently had a discussion on another thread about equality and specifically whether or not the Marxist were truly seeking equality among the citizens. I said part of their DNA is a continuing revolution, a never ending revolution. Whatever is must be destroyed. Their entire philosophy is built on revolution and all their strategies are about how to do it. Makes no sense, does it? What about Marxism does?
Our current situation is about that, total destruction. They intend to rebuild something after they destroy the status quo but their satisfaction with that will be only temporary. Plus, imagine the total chaos when all of sudden there is nothing with which to barter. Along the way many will die and be imprisoned in order to reestablish order, a new world order.
I am sure those who planned the destruction will agree that the money of record, that which is in the banks, etc., for which they have a record, will be assigned a value in relation to the new currency but it will be an arbitrary value. How will dollars fare? How will gold and other supposed hedges relate to it? How long will the transition take? How will the chaos in the meantime be controlled?
I know this sounds like science fiction but that is the way I see things developing. Can it be stopped? Yes, if we have honest elections in 2010 and 2012 and are willing to take the difficult steps to correct the existing situation. Until then, those in power will continue trying to destroy.
Conservatives are always having to do the dirty work to clean up after liberals. We either have to rebuild the military or cut the taxes they raised. However, each time they have accomplished two steps forward and we only manage one step back. They keep increasing the size of government by establishing new "entitlements" which require new agencies to manage them. That means more government employees who can never be fired and who are automatically members of unions which give all their money to Democrats. Liberals are masters at supporting themselves with the money from the productive people they are trying to destroy. Is there any more evidence than that needed that my scenario is correct? They are always trying to destroy that on which they depend! It may be the system or it may be the people after they are done with the system. Either way, destruction is their goal. It is in their DNA!
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