JPMorgan is object of persistent rumors of gigantic credit derivative losses: The slowly rising USTreasury Bond long-term yield would cause deep painful losses to JPMorgan. Their abuse of Interest Rate Swap contracts becomes a topic of debate. The monetization of USTreasurys becomes a topic of debate. The ability for the USGovt to control its deficits and auxiliary (hidden) losses becomes a topic of debate. Even bond fraud within JPM hallowed halls becomes a topic of debate. To cover the losses, monetary inflation grows out of control, and a USDollar decline ensues, taking the DX dollar index below the 70 level. (chance: 40%)Only 40%?
"Food prices soar in the US: The divergence between official crop forecasts would clash with the reality of crop failures and profound shortages this summer. Being the greatest food production source, the US crisis spreads globally. The deCarbonnel threat is realized, as foreign nations sell US$-based assets in order to finance food supply purchases. China enters the fray as a buyer of distressed farm property, amidst accusations of carpetbagger. (chance: 80%)
No making use of our oil reserves which would reduce foreign dependency,
No creation of new jobs but instead an acceptance of a high unemployment rate as the new norm.
How many economic gloom n’ doom, “we’re all gonna die, financially”, bull sh*t articles need to be posted here?
Apocalypse now. If history is anything, it is a guide to the probability that the same or similar actions lead to the similar sort of outcome.
The market collapse of 1929, and the Great Depression which is concluded to have resulted from that singular event, are linked in people’s minds, but for the wrong reasons. Sure, the market crash set the stage. It was the Federal government’s response to those events that caused the long slow-motion train wreck that was the Great Depression. Herbert Hoover was long perceived as a “do-nothing” President, but in fact, he drew up many of the basic schemes that were later introduced as part of the “New Deal” under FDR.
Had FDR done nothing at all, just let the various banks go bust and the capitalists go bankrupt, the situation would have corrected itself by 1935. But FDR, ever the great admirer of the “Corporate State” of Benito Mussolini, saw this as an opportunity to do a little “social engineering” on a more grand scale. So he set about “fixing” tings, and declaring a whole new set of secular “rights”, with which we are cursed today. What was only a very serious recession got turned into a full-blown depression, and went through a double-dip in 1938, when the country was even worse off than it was in 1933.
The greatest scheme of all was selling the country Social Security, which was primarily a tax scheme, collecting a
“payroll tax” half from the employer, half from the employee, for a fictional “old-age” retirement they never expected to pay out very much on. In essence, the collection of this revenue became a huge “slush fund” that was “borrowed” against to fund a great number of other schemes that had nothing to do with old age, disability, survivors, or retirement. Supposedly these receipts were to be kept separate from the general revenue, but in fact, the commingling of the funds started almost immediately. The “reserves” in the Social Security fund were drawn down by taking the funds and handing back an IOU, that bore little if any interest return. A tax increase that was not called a tax increase.
Health insurance is now at the same stage that Social Security was in 1935, that is, a scheme in the making, which seemed to be almost innocuous at the start. But provisions were built in that assured that any revenues the government received ostensibly to fund the program, would be diverted to other purposes long before any payout of the program proceeded, just as is now being done in the name of “health insurance reform”.
We are being set up, not for the first part of the New Deal, but the second wave of the Great Depression, finally broken only by the economic effects of the full employment of the Second World War.
War is a very inefficient way of achieving full employment.