Economic Collapse Inevitable...how to protect ourselves??

[Last Man Standing]

Dude, you should start your own YouTube video channel. Your subject could be conspiracy theories, pro-anarchy/Ron Paul speech, amongst other miscellaneous rantings. I think it would be a big hit. Hell, I'd watch it. It'd really brighten my day.

We seem to have fascist agents in every forum on the internet nowadays! First Deus Pianoforte now this guy - Deus's Fascist Ghost ready to stir up trouble!

 

[Last Man Standing]

Two excellent simple explanations of how we got into this mess - by design!

The controllers of The Matrix, controllers of the money supply, are doing to America what they did to Germany after world war 1..


Two videos to listen to....for understanding...

"II's not stimulation, it's hyperinflation" AND

"To Try And Save The Paper, Is To Go Weimar."


...which is below the first video!! A big guy in a blue shirt with a white beard sums it up well.

The Weimar Republic was the fellow in charge of Germany after world war 1

See videos here...

http://larouchepac.com/

.

 

[ProDJ26]

its been a known fact, we have a very crooked system

 

[Wiesman44]

The fact that you all watch and take CNBC seriously just shows how little you know. You really think the talking heads on that show really know anything ?

The only time I will actually listen to what they have to say is when Santelli is speaking.

 

[Last Man Standing]

The two most obvious reasons for inflation.

1. The effort to produce a product becomes more difficult and requires more input to produce said product. If you need more people and more ingredients to produce than you will raise the price.

2. The currency is devalued due to the over extension of credit and an overwhelming influx of currency flooding the market, without a productive output created, making too many dollars chasing the same product base.

We are in the devaluing of the currency stage.

The dollar is the world reserve currency (as designed by the central banks after world war 2) due to the demand for dollars to purchase oil!. When other countries see that the dollars are purposely flooding the market without productive output, then they lose confidence in the dolllar and require more dollars for the same product. This cycle continues until total confidence is lost in this fiat currency! This creates a collapse!

 

[Last Man Standing]

But I want to know why inflation is necessary for growth? Why could we not have growth with a steady supply of money?

Inflation is not necessary for growth - inflation makes things more expensive - if your salary/wages go up the same percentage as inflation then it has no effect on you; however, if your wages stay the same then inflation has a negative outcome on your purchasing power over time because the same services and products will cost you more. If these services and products cost you more then you will have less money to buy other things.

We could have growth with a steady supply of money - that is how it is suppose to be - but if you produce nothing but keep printing dollars then this will devalue your currency and thus cause inflation - this is the state that we are in.

For example:

When property prices went up - nothing of real value was created, but it was a function of private bankers ("Federal" Reserve) keeping interest rates low and therefore allowing people to get easy credit to purchase homes - thus, a lot of money was chasing a finite supply of homes, so prices of homes went up because the sellers knew they could demand more money for their home because of the "over" supply of dollars in the market. BUT the homes themselves didn't change or add value, no productive output was created, but yet homes doubled in price whilst the people's wages buying these homes stayed the same.

It was deliberate monetary policy (low interest rates and easy available credit) that created the housing bubble and it had nothing to do with productive real growth output!

 

[spider_007]

waw....they actually did their homework, and aren't afraid to challange.

interview with Allan Greensan
http://www.archive.org/details/dn2007-0924_vid

their main site
http://www.democracynow.org/

 

[Rumpelstiltskin]

Can anyone say "YIKES"! See Video .... top economist and adviser to the top 100 companies.. http://www.liveleak.com/view?i=f49_1204403165&p=1

 

[SmoothTalker]

Not to mention far more countries are hold US debt than owe it. Look up the foriegn reserves of Russia and China for example.. Hundreds of Billions, if not trillions, of US dollars held by them. The US on the other hand.. well if somebody asks for their money back, all you can do is fire up the printing presses, as reserves are below zero, they're trillions of dollars in the negative.

PS: Even though our economy is fairing much better than yours, our dollar is going down the toilet. Same for most other currencies, it seems the US dollar is actually shooting up against everything lately, because people are moving into it as a safe place during rough times. WTF? Maybe I'm missing something, but the USD is the last place I would consider safe right now.

 

[SmoothTalker]

Alright, I figured that was part of it, but really almost all currencies are currenty dropping against the US dollar. Seems like stupid speculation by people that don't really know what's going on and just go "hey the US is pretty big, must be safe there". That would be the same people that thought oil was a safe investment at 140 and had nowhere to go but up.

 

[saber]

im ordering How to profit from the coming devaluation


the market crash, which is really returning things to baseline/normal, is an inevitable part of the business and government cycle...

Oh and democracy is the second best form of government...maybee the thrid...the founding fathers of the u.s.a. formed a republic and openly critized a democracy...

 

[Bling]

Sure happened...

 

[f283000]

the new world order is coming, America will become a third world military dictatorship. Are you ready?

 

[Quiksilver]

It does appear to be a possibility, however not in the next few years.

** CAUTION LONG POST **

Consider: Greece was bailed out by USA and other large countries. On it's own, their government would not have been able to pay even it's essential services workers such as Police, firefighters, paramedics, etc. within a year.

Luckily the IMF (USA is 25% shareholder) bailed them out, now they only have to raise taxes and cut services somewhat, rather than completely.

It's well documented that when essential services are cut (employees stop being paid), a nation can fall into anarchy within days, and then either the military takes over or it becomes a third world warlord-ruled state.

Now consider that the USA is in worse financial straits than Greece, only about 7 years behind. http://www.cnsnews.com/news/article/67183

The IMF cannot bail out the USA, so there is only one solution: Raise taxes and cut services. The question is, will the citizens of your country accept working harder and earning less due to the addictive-criminal activities of their government, or will there be mass civil unrest/revolution? Greece citizens went quietly into the night and are now in the midst of 'austerity measures' (economic slavery) to pay off a portion of their debt to the bankers. There is civil unrest there however the police and military are cracking down on it and there is also a lot of censorship in the media to hide the cause and extent of the problem from it's citizens.

They are only a small country, so they--while facing the belt-tightening of austerity--will be relatively okay due to the international aid. What happens when a country with 33 times more people than Greece also feels that austerity, except with little or no international aid?

Some services in your country are already starting to feel the squeeze:

http://www.bloomberg.com/news/2010-08-02/california-bond-shortage-shows-most-indebted-state-eludes-borrower-penalty.html

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/09/BABM1ERE21.DTL

http://www.nytimes.com/2009/02/10/us/10prison.html

http://www.bloomberg.com/news/2010-08-04/new-york-senate-passes-869-million-revenue-bill-to-finish-overdue-budget.html

All those relevant links above point to the states borrowing more money from its citizens and the treasury to cover it's finances, knowing that the interest on those loans is increasing and must be paid back.

The root of the problem is this: Economies spending what they don't have, and lenders lending what they don't have.

The current financial depression was caused by both.

So those links above show that the large economies are still trying to borrow themselves out of debt(ie. drink themselves sober), knowing that they're just prolonging the collapse and making it worse for Joe Public in the end.

Federal Reserve promises to help boost economy ... Again.

Even your countries most prominent financier is lending out MORE unbacked freshly printed money, to help states and large banks pay their bills.

This is like a drunk who is in need of a stomach pump taking another deep swig of Smirnoff.

That money has to be paid back eventually.

Two choices:

1. Austerity now, meaning MUCH higher taxes and far less services.
2. Austerity later (or when it comes), meaning road warrior anarchy "Book of Eli" type scenario.

--

For those that don't believe, it's very simple. Pretend it's your personal finances. You can pay off one credit card with another and keep borrowing to pay for your living expenses, meaning eventually your salary will go only to cover the interest on the debt. Once this happens and you can't afford to feed yourself or put a roof over your head, you will have to sell your car/computer/ipod/television/shoes/stereo/wedding ring/etc. just to feed yourself while paying off those debts.

In Greece they sold off some of their most precious islands: Greece starts putting island land up for sale to save economy to private buyers to help pay off their debts. This is equivalent to you selling your Lexus and plasma screen television to your neighbor in order to buy food and keep a roof over your head.

So while the Federal Reserve keeps printing money to finance the federal governments expenditures, just know that it's your countries' future that you're selling off, and the future of your children and their children that you are committing to a life of economic slavery to pay for the gambling addiction of your government.

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To OP:

Best way currently to protect yourself is to imagine how to live in a world without essentail public services and degredation of Rule of Law:

1. Pay off all your personal debts.
2. Buy physical gold for investment as a hedge against inflation.
3. Stock your pantry with as much storable food as you can buy.
4. Buy a gun and learn how to use it.
5. If you are guilty of political apathy for how your elected government spends your money and how private banks raped your future, then apologize to your children for helping clamp the iron shackle of Austerity on their ankle.
http://www.corbettreport.com/articles/20100622_austerity.htm

--

Might seem doom and gloomish but the personal protections against it are liberating and you will gain a sense of personal freedom for taking control of your future, regardless of what those in Washington decide they have in store for you.

cheers!

 

[taiyuu_otoko]

apples and oranges. Greece is part of the EU, and couldn't print their own money. The rules of joining the EU is that you can't have over a certain debt/GDP ratio, which Greece couldn't maintain.

The U.S., on the other hand, can do four things, to get more money INTO the economy:

1) Lower interest rates
2) Print more money


3) Drastically cut government spending
4) Lower Taxes

Big governments love to do 1 and 2, but loathe 3 and 4.

3 and 4 are still viable options, and can turn things around. They have before, many times. 1 and 2, on the other hand, have never worked.

Personally, I believe the current U.S. administration is setting itself up for 3 and 4 to be the obvious options for the next POTUS, just like Carter set it up for Reagan (high interest, high taxes, which Reagan reversed, allowing for simultaneous booming economy and booming deficits).

Greece is in the problem it's in because 1, and 2 are simply not options, as it shares it's currency with the rest of the EU. And after joining the EU, it continued to spend, spend, spend. (mostly on Military)

But the mainstream media LOVES a good doom and gloom story, hence the recent proliferation of "The US is Next!" articles that you can't miss with a dead cat.

 

[Trader]

apples and oranges. Greece is part of the EU, and couldn't print their own money. The rules of joining the EU is that you can't have over a certain debt/GDP ratio, which Greece couldn't maintain.

Everything you have said is correct so far

The U.S., on the other hand, can do four things, to get more money INTO the economy:

1) Lower interest rates
2) Print more money


3) Drastically cut government spending
4) Lower Taxes

Big governments love to do 1 and 2, but loathe 3 and 4.

Correct, governments have a penchant for 1 and 2

3 and 4 are still viable options, and can turn things around.

Personally, I believe the current U.S. administration is setting itself up for 3 and 4 to be the obvious options for the next POTUS, just like Carter set it up for Reagan (high interest, high taxes, which Reagan reversed, allowing for simultaneous booming economy and booming deficits).

But the mainstream media LOVES a good doom and gloom story, hence the recent proliferation of "The US is Next!" articles that you can't miss with a dead cat.

This is where things get hairy. Cutting government spending will not save us enough money to save social security. Social security and medicare/medicaid are impossible to save because there are just too many baby boomers and they are living too long.

Now let's assume that the government just outright kills all affliated SS benefits, which is politically unfathomable but for the sake of this discussion, we will do it.

This relieves that economic burden.

But there is still another huge problem, the huge amount of money stored in the baby boomers 401(k) / IRA accounts. Remember the definition of inflation:

'Too much money chasing too few goods, thus causing prices of goods to increase'

What happens when the baby boomers are all taking about their cash and trying to buy real goods? Inflation through the roof. Couple inflation with high unemployment and you have the devil in economics: stagflation.

 

[Kailex]

My question for some of you is:

What happens when all those baby boomers begin to die?




Granted, it'll take a good 30 to 40 years, unfortunately for the economy.

 

[taiyuu_otoko]

My question for some of you is:

What happens when all those baby boomers begin to die?

Granted, it'll take a good 30 to 40 years, unfortunately for the economy.

that's the Bujillion dollar question. The problems that exist now can be dealt with, they may be drastic, they be uncomfortable for many, but they CAN be dealt with. Lower corporate taxes, drastically cut government spending, relax trade laws. Repeal all the ridiculous big government laws that tax everybody and produce nothing but debt.

But when the boomers start to die, and start requiring more and more medicare, medicaid that's when it is going to get REALLY dicey.

It's a ponzi scheme that has gone on for far too long, and when the music stops, there's going to be some hard, hard decisions that will most likely leave many out in the cold with nothing.

Consider China. Many think China is the next superpower, growing fast, buying bonds from all over the place like a drunken sailor.

But their one child policy, started in the seventies, is going to absolutely destroy them in 50 years or so. Their age demographic is going to be so upside down, and they aren't all that efficient to begin with. So their growing economy is likely going to pop. And when it pops, it's gonna be a doozy.

That is where the real threat of revolution is, in my opinion.

Also, consider Japan. They sell debt, but only to Japanese, and pay only 1 percent on their bonds. And the people that have been buying them all these years are getting old, and are not only stopping buying them, but are going to be cashing them in.

Soon Japan won't have any more customers for it's debt, as there is no way they can compete on the global market selling bonds at only 1%. What are they going to do then?

The U.S. isn't so bad, now, as it can deal with it's problems, if it stops printing monopoly money and gets serious.

I suppose the take away from all this is figure out how to save and invest, an despite being forced to participate in the social security ponzi scam, don't depend on ANY of it being there when you need it.

Knowing how to create your own money supply is simply a necessary alpha male DJ skill of the 21st century.

 

[elite7]

has anyone read neil strauss book emergency

 

[elite7]

has anyone here read emergency by neil strauss