Posted on 06/17/2012 6:22:21 AM PDT by blam
The WHO is easy. The name Hussein gives you all the hints you need.
When you try to figure out WHY and WHO is this guy, ask yourself WHAT WOULD A MUSLIM TERRORIST DO IF HE WERE MADE POTUS? The answer is EXACLTY WHAT BARRY HUSSEIN OBAMA IS DOING.
Got gold?
Can’t eat gold!
My how I would like to see an
immediate rise of the present
false interest rate, to about
six percent, and see the dominoes
do their thing.
The US government is on a collision
course with reality, and when the
govt goes over the falls, the rest
of us will be in the barrel with
them. You just can’t make this stuff
up. The question remains when, rather
than if.
...and the final reality, who ya gonna
hang. The complicit masses, or the willing
accomplices in the congress?
My understanding is that if/when the interest rates go to 6.0%, the government cannot afford to make the payments on the debt and default is the next step. Correct?
Why? Because fiscal austerity is unpopular. Any politician who tries to sell it will be looking for another line of work.
People like statism - as long as someone else pays for it.
The general attitude with debt in this country is as long as its not mine, its not my problem. Let someone else pay for it.
And with all our debt overhang we’ll never pay back, the feeling is nothing much will change because it won’t. Not in our lifetime.
“Secondly, the near-zero interest rates being paid by banks and other savings vehicles are so low that it actually discourages people from saving when they need to be doing it most. I had the severe displeasure of scanning rates on money market funds for a client the other day and found that the average of the handful of money market funds I looked at was .06%. That is six cents a year for every hundred dollars invested. Incredible. And when you figure that veritable fortune is taxed? Well, what’s the point of even saving? “
Just some thoughts of mine:
1. Money is capital
2. Zero interest rates= no increase in capital
3. No increase in capital+inflation= erosion of what capital remains
4. Soon, no capital remains- it will be worthless paper if it exists at all.
Forget Social Security as a retirement option, or even as assistance.
My retirement “plan” is to own and operate a small farm. That way, at least we can eat while the rest of the planet spins apart over worthless fiat money and sovereign debt defaults.
Got Gold?
Nope. Guns, ammunition, tools. I figure they will be more useful when the collapse comes.
I'm expecting that you will be accepting gold coins for any food surpluses from your farm?
If not, what will you be accepting?
We are deep in trouble it is clear. We know what is wrong, we know what will happen. Wringing our hands isn’t going to stop it. Most of us are well and truly screwed.
Like so many other times when we have been in deep trouble we have to first stop digging. That means getting rid of the Marxists that occupy or capital and many of our state houses. From there, if we do survive, we begin the long climb out of this hole we are in.
My Grandmother had a saying, “When you have a big job to do, you put your head down and hoe to the end of the row.” She did that row after row after row in her bonnet and long sleeves under a glaring sun.
We have left good principals and right behind for too long. We know what is right, it is the straight and narrow path, the hard route. We have stood for everything until we stand for nothing at all. Cliche, but I think it is true. We have raised at least three generations of people who think that being taken care of is a way of life and don’t even know or care where the taking care of comes from. We have given up our sovereignty by not even having the common sense to enforce our borders and laws. We have let others raise our children in our schools and fill their heads with crap. We deserve all the misery we are receiving. You sow the wind and you reap the whirlwind.
Sounds like my mother during the depression.
My dad met my mother while working for her dad 'chopping cotton.'
I think their courtship was in that cotton patch hoeing cotton.
What seems crazy about this is that the world is still willing to loan us money at THE LOWEST RATES IN HISTORY. The ten year bond now yields a measly 1.6%. What do you think the dollar is going to be worth in ten years?
Now we can moan and sigh and long for the good old days, but it seems like a clever person would do something to take advantage of the ability to borrow money against a soon to be worthless US dollar at 1.6% for ten years.
It seems to me that we should borrow money to fix the parts of our infrastructure that are crumbling around us—the highways, the bridges, the electrical system, the schools, airports, rail systems....An immediate upside would be that it would put lots of Americans back to work. The other would be that we’d get to pay the money back with dollars worth a great deal less than they are worth today.
The U.S. government will never find its supplies of paper and ink so low that it cannot print money. An actual default never has to happen.
What will happen is that the value of the dollar will plummet.
Paper money was invented as a convenience to replace precious metals. Gold and silver will continue to be money because the attraction to them hasn't changed in thousands of years.
There will be pockets of shortages where gold and silver are worth less in terms of how much food they will purchase. This imbalance will act to encourage people with food to move it to where it is worth more. That is how economics is supposed to work.
Government will attempt to interfere with this movement because government will want to take the gold. People will resist this. You can't eat gold. But you can eat food next year purchased with gold.
The only thing that would make food too costly to buy with gold will be government interference. The Soviets, before the collapse of the Soviet Union, created a situation where millions of people had to stand in bread lines and where virtually nobody had the means or the incentive to make bread.
With the proper incentives, there is enough labor and productivity in the world to make more than enough bread to feed the productive and have labor left over to create other kinds of wealth. Only government interference can keep this from happening.
That is not an "upside". Inflation is a form of taxation. Everyone holding dollars is taxed to pay for the loss in value of the dollars. Hyper-inflation is the result of people recognizing this tax and refusing to accept the dollars.
How can you hire someone to fix roads and bridges if you pay them in pieces of paper with a rapidly declining value?
There is no free lunch. Just because the government wants to do something, that does not provide the resources to do that thing. The resources have to come from somewhere.
Our grandchildren are going to wonder just what were we thinking to have allowed the situation that they will inherit. They are going to be very angry at what they are forced to face. Fortunately for them, some of the price is going to be paid sooner rather than later.
If not for the irresponsible behavior of the rest of the world, the U.S. would have had to change its ways a long time ago. Europe lives in a socialist paradise that is crashing around them. Africa continues to be of no account. China allows themselves to be ruled by central-planning and denies the productive among them the standard of living they deserve.
Those nations will, of necessity, be changing their ways soon. This will result in a new reality for the U.S. We are already seeing the effect of China not buying as much U.S. debt. The U.S. is printing money to make up for this.
What goods and services will the U.S. be supplying to Greece in the coming months? Little or nothing. The same will soon apply to Spain, Portugal, Italy, and others. These nations have been living on borrowed money too long and cannot continue to do so.
The company from which I retired makes half of its sales outside the U.S. What will happen to that company and its employees? "Austerity" will mean a significant drop in its business level. Some employees will be laid off and others will have their incomes reduced.
This scenario would normally cause a recession and deflation, but that is impossible with the U.S. government continuing to send out more and more entitlement checks backed by freshly printed money. We will have "stag-flation" for half a lifetime or more. I don't see a way out of this.
Obama wasted it on solar power companies and unions.
“How can you hire someone to fix roads and bridges if you pay them in pieces of paper with a rapidly declining value?”
How does your boss pay you today?
Actually, the dollar is not declining all that rapidly, and the best evidence of that is that other nations are willing to buy ten year treasury bonds at 1.4% interest. Yes, in the future it may well decline, and may do so quite rapidly. But say it declines to 50% of its present value. Then the money we use to pay off our debts would be worth only half what we borrowed, so we would come out ahead, wouldn’t we?
Just for the sake of discussion, let's say that you are 30, have no retirement savings, and owe a mortgage which is more than your house is worth. Let's say that I am retired, living off a fixed amount of conservatively invested savings and owe no mortgage.
In the scenario I described, my answer would be "it depends". Your comment, however, explains why I am so certain that inflation lies ahead. People who are in debt will be somewhat rewarded. Others may be severely penalized.
That’s how I understand it, and so anyone allowing the government to get even deeper in debt is an absolute moron, much less being worthy of criminal charges, and forget what happens to the American people, which is to say the least a treasonous thought.
Have you seen this?
President Obama: The Biggest Government Spender In World History
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.