Posted on 08/13/2009 7:01:42 PM PDT by mbarker12474
... The crux of the matter is that the United States is no longer in control of its fate. Meetings with creditor nation leaders result in new orders given, and new policy directives enacted. Comparisons are made to China, but they too are a distraction. China can embark on its ... The USGovt creditors are in control. The August Hat Trick Letter reports have identified five major factors pointing to a severely stressful period of time at the end of August and into September.... The risk of accidents is rising exponentially from incredible backroom movement of massive funds to avert disasters on a weekly bas.... My best sources of information report that some unexpected deep shocks are coming from USGovt creditor nations. They are simply fed up, frustrated, and astonished at the manner of lost control, spiraling debts, and blatant monetization amidst lies in denial of that same monetization. The USTreasury auctions now have domestic hidden elements, and global hidden monetization elements...... The creditors regard the US political and banking leaders as living in a world divorced from reality, and thus require shock treatment. USTreasury Bonds have become a liquidation currency. Actions in the Persian Gulf and European region indicate that USTBonds are being used in liquidation and distressed sales on a truly massive scale. The failed Dubai construction projects .... For China it is a race against the clock for how fast they can convert their $2 trillion in USDollar holdings into strategic assets, namely oil and gold. At today’s deflated prices, putting together a really good billion dollar deal is a difficult thing to do. Putting together 2000 of them is impossible. Doing it before the dollar collapses? Not a Chinaman’s chance. And they know it.” .... long article with charts...
(Excerpt) Read more at financialsense.com ...
Do all those home owners who still want top dollar for their property (despite the Great Recession) then turn around and raise their home price from $985,000 to $4,385,000 because.....well - the dollar doesn't buy as much as it used to?
“My best sources of information report that some unexpected “deep shocks are coming from USGovt creditor nations. They are simply fed up, frustrated, and astonished at the manner of
lost control,
spiraling debts, and
blatant monetization amidst LIES IN DENIAL of that same monetization.”
we are fed up too.. especially with the lies.
” Is this a gold sales pitch?”
Well, it ain’t a pitch for the dollar. That’s for sure. If anything, it’s for a movement out of the dollar, towards the acquisition of commodities (as China’s been doing for some months). Old news for the Chicoms though. Their investment in us is pretty well screwed, though we are a decreasing market/investment for them (I imagine they wish we were still smaller).
If I had a dollar for everytime the dollar was going to go bust . . .
I wish people would clue in that when conservatives buy into this nonsense they are really helping third world wannabee dictators.
Its silly to believe this nonsense.
Well, IIRC, our actual total fiscal exposure is over $600T, $24T of that by the end of this year.
48% of 7-Yr Fed Notes were bought back after a few days recently. That’s a whirlpool if ever there was one.
Ticker guy & Peter Schiff are all over this.
He who controls the debt controls everything.
If the dollar collapses, with what will we purchase foreign oil?
need our government to give our money back fast and stop destroying the country.....no more spending and no more acorn....for sure
“I’ll take paragraphs for $200, Alex.”
Well, when I read this kind of stuff, I get the same reaction that I used to get when I had Directv and would watch Glenn Beck.
Buy more rice! Buy more ammo!
What happens with hyper inflation is daily, maybe even hourly, devaluation of the currency.
Germany, prior to WWII, experienced hyper inflation. Shop keeper would write on a blackboard outside the store the days multiplier. For instance, let’s say an item was marked 1 Reichsmark,. You would multiply that number by whatever was on the sign out front.
Ordinary people who save their money will have their savings wiped out, just trying to buy food.
Big business, on the other hand, likes hyper inflation. Why? Because they’re paying back very large loans with currency that has become worthless.
Our government wouldn’t mind hyper inflation, either, for the same reason.
If hyper inflation happens, and it well could, the value of a home is the least of anyone’s worries.
Worth its weight in gold...
“At today’s deflated prices, putting together a really good billion dollar deal is a difficult thing to do.”
Food stamps. Right?
bttt
Look at California and you will say yes. Housing here skyrocketed and even though none are selling, prices have not dropped as severely as you would think. Most homes are over $100,000 even for run down fifty year old houses. I guess they have always thought there was gold in the ground under them.
When you borrow 10 thousand the bank owns you. When you borrow 10 trillion you own the bank.
Your mortgage amount stays the same, but you can pay off your home debt with inflated dollars. Sounds nice, but the rest of the story is not pretty.
Actually, you are wrong. There comes a point when the debtor has more leverage. It happens sometimes when banks loan money to a business and then end up making other loans to try to keep the business afloat. At some point the bank has more to lose than the original business. The bank would love to throw in the towel, but the better option becomes to ride it out.
You best value for you investment dollar: Food, Guns and Ammo!
Problem. We are headed for severe stagflation. The economy will be depressed and inflation will rage.
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