Posted on 04/21/2013 8:57:21 PM PDT by blam
(WAD!)
Goldbug ping.
We noticed. California is bankrupt and is near collapse. But that doesn’t stop the liberal idiots in charge from continuing their idiotic big spending ways. Doesn’t even slow them down. The inevitable collapse is going to be a big surprise to them. And to their legions of highly paid government union worker goons (useful idiots) who are going to see their plush pension funds go *poof*.
And the USA is not far behind.
Nominated for most charts ever in a posting. Good work.
When it goes poof!
They will be angry and feel entitled to your 'stuff'...they'll come looking for you too.
Prepare now!
Deflation will be disastrous in a heavily leveraged society such as ours. Debt will become nigh on unpayable. Debt will still be denominated in dollars, dollars that will be increasingly dear as they're worth more. But like cockroaches after a nuke, there that debt still is, it survived, now payable in dollars equivalent to those of thirty years ago. Who can pay a $350,000 mortgage note on a 1983 average salary? Practically no one.
Retire your debts with cheap dollars so you can keep your expensive ones is the strategy for deflation, imho.
Well, for once in my life I’m glad I don’t have anything. And as soon as it goes belly up, they can foreclose on me and I can bail the hell out of California.
I still think the best bet is baked beans!!
That doesn’t work for those of us in states subject to judgement for any balance owed above and beyond the price fetched at auction. We’ll be hounded until it’s paid.
Well, when the state, county and city governments here all go belly up and the trash and garbage is no longer picked up, the water flows only sporadically, the sewers are all backed up and flowing into the streets, electrical and phone service failing, and gangs of looters are running free, the place will be pretty much uninhabitable. Think the ruins of Detroit writ large. Property values will fall to zero.
What happened most recently in Cyprus is a coming attraction to what will happen to your IRA’s and deposits in American banks once people realize what a house of cards they are.
Meanwhile these select few are out there buying all the gold, silver, available farm land and any other tangible, useful asset they can get their hands on because they know what’s coming.
...and firearms with an appropriate stock of ammo.
Wow, thanks for posting. I love charts.
Moderately prepared...
No one in their right mind would ever purchase a government Bond again and the present owners of municipality and city Bonds (which is close to US $1.8 trillion and then you have another US $1.2 trillion on the state level), will start dumping Bonds, to recover whatever they can get.
I own a small finger of a plateau - just over 12 acres. The
finger next to mine includes my adjoining hillside as well as the hillside of the adjoining land on the other side. There are two streams, one in each valley (about 70’ below the plateau) and a natural spring. It’s about 20 acres, mostly wooded with a 3 acre patch on top connecting to level woods at the tip of the finger.
I’m bidding on it at auction this Saturday. As much as I want to put the bucks into PM’s, I think this may actually be the better “deal” in the long run. RE taxes are only around $200 a year.
PM’s come next, beyond what I already have.
This thing has been obvious since around 2006, though I confess I didn’t really think it could get all that bad. It is so easy, even for those of us who don’t have TV, to be in denial about just how bad this can get. We have to forget the past and look at how current events will effect the future. And we must understand that we become numbed to just how bad it has already gotten.
We are already in WDII.(World Depression II), regardless of all the fake stats that keep being published. And yet it is obvious that we are still on the cusp of something much more serious. It’s looking more and more like it is late August, 1939. I don’t know when it will pop, but pop it will. For the US it may be the full implementation of Obamacare that is the final straw. But the word “straw” does not really apply.
We noticed. California is bankrupt and is near collapse. But that doesn’t stop the liberal idiots in charge from continuing their idiotic big spending ways.
I think that those politicians in a position to actually make decisions on this stuff are like a pilot of an airplane flying over rugged mountains and the “fuel low” light is about done flashing and we’re running on fumes. The pilot can either lawn dart into the mountains and just end it or he can do all he can to keep the plane on a glide path while he searches in vain, looking for a magic landing strip in the middle of the mountains, all the while telling the passengers everything’s fine. If he told them what is really happening, panic may cause the crash to come sooner and he wants to “kick the can” as long as possible - just in case that landing strip does show up.
But more and more of us notice that the rocky peaks are getting closer and closer. Eventually it will come to its climax.
Government spending is a good example. It is so huge that it is now a major part of the economy. If the government stops spending to the point that it actually makes a dent in the deficit, it will cripple the economy and put it in a deflationary death spiral. It’s the “lawn darting” I mentioned earlier. Imagine the jobs that would vanish in government and private sector government contract suppliers. And then the support industries - cars, real estate, food, motorcycles, computers.
There is no way to slowly deflate this balloon. It would require certain industries to become sacrificial lambs. Nobody is going to do that voluntarily. The “solution” will not be voluntary any more than the final contact the above airplane makes with the earh will be voluntary. And when it does make final contact it will be very ugly indeed.
Well, for once in my life I’m glad I don’t have anything. And as soon as it goes belly up, they can foreclose on me and I can bail the hell out of California.
You may be able to stay longer than you think, even if you do stop paying. Just sayin’...
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