Monetary System Collapse Coming Soon!?

I work for a fairly large corporation and I can tell you this...
They are in abject panic mode, which boils down to threatening everyone's jobs if they do not make the inflated numbers they promised.

 

Re: The latest from Marc Faber

I don't agree with him on half of his claims.
I don't think that you should run out and purchase stocks.
But I do agree that the dollar will at some point become worthless.
Maybe sooner than later--maybe later than sooner.
But it will absolutely, positively happen...

http://bullnotbull.blogspot.com/2009/09/marc-faber-buy-stocks-because-us.html

Another good video...

http://www.lewrockwell.com/rogers-j/rogers-j38.1.html


http://www.marketoracle.co.uk/Article13613.html

 

Re: I just read this on another site.

Just saw this post on this site...

http://www.thetreeofliberty.com/vb/showthread.php?t=77444

If anyone on on this forum lives up near Seattle, please give us a clue if this is true.

Here's the post...

I thought this should be shared with fellow Americans.

This is from someone I know, so I know it is a first hand factual report.........It is a sad report. What is happening in our country, as well as Canada, will break your heart.

For those who don't know me personally, I operate a large custom aquarium business, catering mostly to the wealthy. We do work all over North America.

I just returned from a job re-doing the interior design of an aquarium aboard a very large yacht. The work began in Vancouver, BC - Canada, then was moved to Seattle, WA.

I have several things to report about what I experienced and saw in both Vancouver, BC and Seattle, related to the economic devastation which is occuring in both our nation and in our neighbors to the North.

First, Canada. I've done a fair amount of work in Canada, but our last job there was two years ago. Times have truly changed - for the worse.

We never had a problem entering Canada to do work as our business is so specialized and there are very few firms in the world which do what we do, namely very large aquariums (1000 to 500,000 gallon), museum grade aquariums and specialty aquariums for boats and other venues which require engineering and marine biology expertise.

Not this time. Canada has clamped down on immigration and work visas in the past year. Whereas we could normally get a Labor Market Opinion and work permit in less than a week before, we were informed by Canadian customs/immigration that as Canada's unemployment has skyrocketed since last year, they are now running six weeks or longer to approve temporary job pemits and now require a multitude of paperwork to prove that the work one does cannot be done by a Canadian company.

We had less than a week's notice and had to hire a lawyer in Quebec for a lot of money to walk our application through channels. Even with our papers all in order, we were delayed at customs for an hour while we were grillled about what we were doing and why only our company could do the work.

In other words, Canada, unlike the US, has clamped down their borders, stopped illegal immigration cold and are fiercely protecting their citizen's jobs. When we arrived in Vancouver and were driving to the marina, we found out why.

Folks, there were literally dozens of homeless people on almost every single block of the city holding signs, begging for money, food, anything to help them. There are no jobs and many have lost their homes. Canada, like the US, is lying to their people about their unemployment rate. The situation in Vancouver is dire. Shelters are packed beyond capacity. Tent cities were common in vacant lots in the more rundown neighborhoods.

I bought a very thin woman and man who were so hungry they could barely stand a few sandwiches and bottled water. They had two children with them and were so grateful. One showed me his old employment ID which showed he was an engineer. He and his wife had worked in a factory together which is now closed. We got in our truck and left. I looked in a rearview mirror only to see a crowd of other homeless people fighting with the couple for a share of the food. I tried to stop and help them but traffic wouldn't let me pull over.

But the desolation didn't end in Canada. Seattle seemed even worse. We drove down as with security and all, driving was faster. When we arrived and left the Seattle motel in the morning and started the drive into the city, I was shocked and horrified to find downtown Seattle and almost every neighborhood filled with homeless folks on the steets, camped out in city parks, living under bridges. Everywhere we went, we were asked for handouts every few feet. Even Pikes Place was packed with homeless, seeking handouts from tourists.

Many factories have closed. Dozens of large freighters and barges sit empty in the harbors with no cargo to haul. Shipyards have closed. Sure, there are white collar jobs aplenty, but blue collar industries have been destroyed.

Many shops have closed and only those catering to the wealthy seem to be thriving - barely. It is my custom to treat my employees to a very nice dinner on our last night after successful completion of a project. We went to what is described as the best steak and seafood joint in the city on a Saturday night. The place was dead - only three tables filled out of a hundred or more.

Then there were the illegals. We have our share of them here in Chicago camped out in Home Depot parking lots, but NOTHING like the hundreds we saw in two or three Home Depot parking lots we visited in Seattle. The city has had to station a dozen or so police in each lot to protect customers and break up fights when a "job" becomes available.

One of the crew on the boat had just came down from Los Angeles where he lived. He told us that what we saw in Seattle is nothing compared to LA.

Heartbreaking.
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Don't be surprised if we don't cook up something similar from Iran. They won't take our federal reserve notes now, only Euros.

 

Iran? Oh yes. Israel is primed for that takeover.

Also be prepared for WWIII--very likely.
At the very least be prepared for massive terror counter strikes here in the USA.
Mass killings and bombings.
Possibly even nuclear strikes with smuggled in weapons.

Will it be worth it?

ST

 

Again why do we have to watch Russia Today for the truth?!

YouTube- SUPER DEPRESSION COMING !!! COLLAPSE OF US DOLLAR !!!

ST

 

It just amazes me that I can get this kind of intelligently thought out information from Russia Today but all I can get from the U.S. main stream media is celebrity incest, dancing, and of course sports.

When the Roman Empire was imploding the people were kept distracted by bread and circuses, just like we are now.

 

Re: Economic Armageddon

Listen to what Faber is saying now...

YouTube- Marc Faber - "Total Collapse Will Come" - Economic Armageddon - Dollar Crash

 

Re: Economic Armageddon

So, once you reach the top of Everest you can't live there huh?

 

This reminds me of the cinematic classic "Dr. Evil meets Heckle and Jeckle".

Seriously I believe this will come and that we need to learn to live as self sufficiently as we can. Live with less and be happy.

 

Re: Correction to previous video posted

Mistakes made in this guys charts.
So he makes a new video...

YouTube- Outstanding Debt, GDP and Income Who Are They Fooling (NWO SERIES/ ECONOMIC COLLAPSE)

 

http://www.americanenergycrisis.blogspot.com/

Monday, September 28, 2009

Head Fakes, Y2K, Peak Oil, Inflation/Deflation and the Doomers...

I got some email from folks I can only describe as HOPING for doom...

I have no idea what drives their desire for Armageddon. Some of these people have been hoping for the end since Y2K. Ten years is a major portion of your adult and productive life... sitting around hoping something bad happens seems a terrible waste of time.


This last "Chernobyl" (that is Wall Street trader speak for losing all of your money or going out of business, etc...) was fairly easy to see, and still none of the bloggers - yours truly included - got it exactly right. Why would we? Forecasting is failure prone. The "next blow up" will not likely come on time, as predicted, or as conveniently as the Doomers seem to wish. There were only a few guys that were "right" every time, every call, every trade. Bernie Madoff was their poster boy.


Let me give you an example. In the Long Term (let's say 10 - 20 years) I believe that the US$ will go Chernobyl, Flame Out, Blow Up (you pick), ergo I do not plan on depending on that as a store of value long term. In the short term, a US$ rally could come at ANY time and kill the shorts - dead. Look what just happened in the US equity market. Hence the term "Head Fake". Markets LOVE to use that move on traders. Yes, I think the US$ is doomed, but that doesn't mean I'd be long the other currencies here (short US$). NOTHING moves in a straight line. Markets ebb and then flow.


But back to the Doomers... Eventually, you guys will probably be right. BUT, it is going to happen so slowly - say, over a decade - that you will adjust to the changes and never really see a blow up (unless the reinflation strategy of the Central Banks is so successful that the next balloon pop is overwhelming).


So...


Inflation? Or Deflation? Both. I think it probable that another Deflationary scare is in the offing. I DO NOT think we will experience Zimbabwe style hyper-inflation. Why would the Central Banks need to do that? If the U.S. was just another Banana Republic that might have already happened, but with the US$ being the reserve currency for the world? Nah... I think garden variety VERY high inflation will get the job done. Several years, perhaps a decade, of double digit price inflation will bring the US Budget Deficit down to a very manageable level as well as the average American's debt load - and destroy the life's work of the industrious, frugal, and productive (but in America, at least, we have always despised these f*ckers anyway - "Die Yuppie Scum!"), and it will have the added benefit of keeping the Establishment ESTABLISHED (hey, that's what inflation does - it hobbles the Nouveau Riche (first generation professionals, small business owners... folks working there way UP the ladder) to the benefit of the outright Rich).


Yea... I think 12% inflation for 4 or 5 years should do it. A loss of purchasing power of 12% per year for 5 years and an equal and opposite increase in printing would devalue the US$ by 50% or so. That would be the MINUMIM, with 10 years at 12% yielding a 75% or so decline in the value of the US$ being more likely. (And it will sneak right up on you. Nobody rioting in the streets (and rightly so). No big deal. Just a lot of time wasted working hard for something when you could have been hard at the wine, women, and song. So, if you are a Doomer that started Dooming for Y2K, you will have had to wait 20 years and it will have happened so slowly that the collapse of the US$ just won't be that satisfying.)


If one thinks about it, the above scenario dovetails nicely with the Gold $2,000 crowd. That would mean a 50% decline in the US$, and Gold $3,000 would be close enough (especially for government work) to the 75% decline in the value of the US$. Of course, Gold might succumb to the Defaltionary scare I see as highly likely. Remember, Gold is not the perfect investment. It is simply an alternative store of value, one that has worked for 8,000 years or so - somewhat longer than any paper currency has held value. Paper currency, stocks, bonds, small businesses, etc... are only markers, a place holder, indicating the owner's cut of the world's:

1. Fisheries
2. Forests
3. Ranching and Live Stock
4. Agriculture
5. Mining & Minerals
6. Fresh Water
7. Fossil Fuels
8. Human Resources Capital

There is nothing else. If The Powers That Be print more currency, issue more stock certificates, lend more money, huff, puff, suck, or blow etc... you don't increase ANY of the above - not even a little bit. Capital Stock? Means of Production? These are merely 1 thru 7 and the application of 8.


Well, TPTB are printing, but even they can't print fast enough to collapse everything overnight. Sorry Doomers, this is going to take more than a day or 2, but less than 3,650 days I should think.


In the meantime, life goes on. Tonight I am going for a walk on the beach with the kids, then its off to Dairy Queen for some ice cream, and later a glass of wine with my wife.


The best line I ever heard in my LIFE was when I lived in NYC and some nitwit or other was proposing to make a park within Central Park, taking land away from children's play areas and dedicated to, wait for it.... "World Peace". A bunch of locals came over to heckle these jerks when the media got there and after a few back and forth came the line of the Century from a stereotypical NYC mom:


"World peace will come and go. My kids gotta play little league."


Brings tears to my eyes.


Greg

 

Even a broken watch is right twice a day.. it will all "fall down" and we seem to be living in unprecedented times with a convergence of several doomy factors. but it could be a long slow burn..or it could all go pear shaped overnight...

I do get up most mornings and switch on the msm with a slight trepidation to hear "china has dumped its dollar holdings and u.s. banks will be closed "temporarily"."If everything were to go 100?% to the darkside we would be in for some seriously incomphrehensible mindbending doom.. but with as many folks have their fingers in the mechanism, nudging it toward a favorable outcome for themselves I just don't see it turning up all jokers.

 

Great post on head fakes Tango3, thanks.

 

I relenquish my position of doomer emertitus to mr. Takezo...
I realize being saturated in doom, I've reached the point of:
" The u.s.economy is teetering on the brink of complete collapse: it could fail completely next Tuesday , or wednesday , or the next. I could get H1N1 in my cornflakes, Or some nationalguard or DHS trooper could be sentdown my street under some presidential "order"to force his way in and sieze my pantry and firearms. Or a central asian guy with his bum full of explosives could sit next to me in the public library. an airliner could lose a landing gear and dropit through my roof. I could die... I will die as will every living thing, at one time or another( life is infact a terminal disease)...

I am going to prep with some basics (enough to assuage my insecurities)and not lose sleep over whether 3,500 rounds of .22lr is"enough" or if I "need" 5,000.. IMHO I have my bases covered from many angles on the firearms (tools)front. Adding another will not increase the likely hood of me living one day longer. I acknowledge there is a definite "hobby" aspect to all this...
In short; doom fatigue has set-in. Can't even read infowars with a straight face anymore. or comments in Prep videos on on youtube by 13 yearolds proclaiming" You will have 3.5hours to get out of dodge!otherwise you should just bug in..."Authorities everyone of them.
A stray asteroid could be observed heading for earth impact landing in the yellowstone caldera and my dead pan response would be " oh yeah?"...just one more thing...

The following is a response to an article proclaiming the banking system is insolvent! By a knowledgeable mod on the latoc financial doom thread :

You must FORGET the whole "are they insolvent" "are they NOT insolvent" questions!!!!!

The banks IN THE BEST OF TIMES ARE INSOLVENT, that is the whole basis of the fractional reserve banking system!!!

That is why TRUST and CONFIDENCE are so freaking important to these people and WHY the whole Green Shoots bullshit started in the first place. Without confidence in the system it will NEVER come back.

Trust is expressed in your willingness to sign on the dotted line and magically create the money that the system needs to grow and to replace paid off or forgiven debt. But it all rests on TRUST. Without it, the whole thing fails at any level.

Understand that even in the best of times, the banks are employing a 9 to 1 fractional reserve rate. Meaning that it is a 9 to 1 INVERSE PYRAMID SCHEME.. It truly is no different than a Bernie Madoff scheme ONLY the government approves it and the banks never get called on it.

But here is the fatal flaw of fractional reserve banking. Just like Bernie Madoff(and his absolute NEED to keep growing the pyramid, lest the people at the bottom get wise to his scheme) the banks MUST keep growing their base. But UNLIKE Bernie Madoff, they have the blessing of the government and the banking laws on their side. And even worse than that, they are given free reign in times of need TO EXTEND THEMSELVES EVEN FURTHER to prevent a collapse. So after 2001 and the reserves were allowed to go to 10 to 1 than 15 to 1 and then there came the unleashing of the shadow banking system and in some cases 56 to 1 ratios were employed, it became obvious that something was wrong.

156 dollar oil forced the popping of the MEASLY ONE DOLLAR OF REAL VALUE THAT WAS PROPPING UP TO 56 SHADOW DOLLARS and the whole pyramid started to collapse. So these bankers aren't trying to get themselves solvent, THEY CAN NOT. They are trying to get enough people to trust them again.. And if you stop thinking about it at this point, YOU UNDERSTAND EVERYTHING THEY ARE DOING ON TV and IN THE MEDIA!!

Robert
http://www.doomers.us/forum2/index.php/topic,53812.0.html