Monetary System Collapse Coming Soon!?

Givethis LATOC thread a read (two pages) http://www.doomers.us/forum2/index.php/topic,54643.0.html
Jim Rogers claims things aren't that bad to thechagrin of the doomers. Towards the end of the thread there is alot of ran prieur's writings, the point being thecollapse is not "coming" This is what collapse looks like and we'll have a loong slow burn.
onepost from the above link :
No, not at all, he's just saying things are better than expected, and I think for us here at doomers.us, the US is doing better than expected when we were thinking about the future back in the Fall of 08. Don't you think?

Things are deteriorating slower than most of us expected...but still deteriorating. Remember that Summer of hell thing - didn't happen the way most of us were thinking. Remember we expected a million jobs losses a month....didn't happen. Remember we said the cash for clunkers wouldn't do much, IT DID, it pulled demand forward and caused GDP to soar in the last quarter (fake recovery). Remember California's budget problem, it's hardly even in the news anymore, despite the math showing them falling deep in the hole...permanently, but they've just bought more time. The deals worked out in the hallowed halls of the evil fed and the presidency have created a very convincing illusion in the strength of our economy. Remember the FDIC is broke, and why yes it is, but you know and I know they can get the fake fiat dollars from the treasury to carry on the illusion. The banks can still hide their toxic assets, and refuse to foreclose on every mortgage that defaults (they're doing it very slowly and reluctantly). We keep using millions of barrels of oil every day and little to no production work is being done, but that's OK because we'll be shown to be right once all that time of no production comes home to roost, and that time is getting ever closer. I'm not bother, it gives me more time, and I don't know about you but I need more time to enact my plan. My plan to survive this. <table style="table-layout: fixed;" border="0" width="100%"><tbody><tr> <td colspan="2" class="smalltext" width="100%">
</td> </tr><tr> <td class="smalltext" id="modified_808621" valign="bottom">
</td> <td class="smalltext" align="right" valign="bottom"> Logged </td> </tr></tbody></table> <hr class="hrcolor" size="1" width="100%">

 

"AUCONTRAIRE MON FRAIRE":
the feces are headed downhill and reaching "V-rotate":



The Biggest Bust Will Follow the Biggest Bubble

By Bill Bonner

<abbr class="published" title="2009-10-13T15:23:54-0500">10/13/09</abbr> London, England
Our ‘Crash Alert’ flag goes back up the pole…
October is almost half over. Will we get through the month without a major sell-off?
Dear reader, if you think we know the answer to that you’ve got us mixed up with someone else. Someone who is crazy.
No one with his wits about him thinks he knows what the stock market is going to do.
Still, here at The Daily Reckoning, we have our hunches. We think it’s time for a major pull back. Frankly, we’ll be disappointed if we don’t get one soon. Because, once again stocks are too expensive.
Too expensive for what? Too expensive for the circumstances.
The Dow rose another 20 points yesterday to a new bounce record. Oil rose to over $73. Gold didn’t budge.
Of course, everyone now knows that the recession is over. NABE interviewed 44 economic forecasters. Four-fifths of them said the recession was over.
But we don’t care what they said. These are the same seers who missed the biggest single event in financial history. There are many banking crises, recessions, panics and defaults in the record books. But none were as great as the one that hit September a year ago. Most economists didn’t see it coming; why should we trust them to tell us when it is going?
Besides they’ve got the whole thing wrong. It isn’t a recession; it’s a depression. There is no recovery from a depression; instead, the economy has to re-invent itself in another form. Things aren’t going ‘back to normal,’ in other words. Because the period leading up to the crisis was not ‘normal;’ it was a bubble. After a bubble explodes, you have a lot of debris to clean up. The bigger the bubble, the more damage it does when it blows up.
“The force of a correction is equal and opposite to the deception that preceded it.”
You’ve heard our dictum before. In fact, you’ve heard our explanations for all these points before.
We just lived through the biggest bubble in history. Get ready for the biggest bust. Not just two years of falling stock prices and news-making bailouts. Not just 10% unemployment. Not just 100 bank failures and 30% off housing prices.
Noooo… We’re talking about a worthy correction…a real correction…a noble and distinguished correction…a correction that can hold its head up in public.
This is a correction that will take many years…one that will knock housing prices down for at least five years…and stock prices down to the point where people no longer want to buy them. It’s a correction that goes deep enough and continues long enough to do its work – wiping out the bad investments and mistakes of the Bubble Era, while allowing the survivors to pay down their debts and build up their savings.
Now, here’s a confusing little item. Yesterday’s news tells us that consumer spending as a percentage of the entire economy has edged up to 71%. Now wait just one cotton-pickin’ minute. How could consumer spending be going up?
Hold on, cupcake. It’s not going up. It’s going down. It’s just that the other components of the economy are going down even more.
In the second quarter consumers spent $195 billion less than they did the year before – a 1.9% drop. In the 20 years before that, consumer spending increased at an average rate of 3.3%. So, you do the math… that’s an about-face of more than 5% of GDP – a loss to the economy of about $700 billion!
Consumer credit is going down (we reported the figures earlier in the week)…unemployment is going up…consumer spending is going down…
…those are not the circumstances in which stocks sell for 27 times earnings…and move higher. Those are the circumstances in which stocks crash.
David Rosenberg:
“By some measures, the S&P 500 is already trading at valuation levels that would ordinarily be consistent with an economic expansion that is five-years old as opposed to a recovery that, at best, is in its infancy stages.
“On an operating (‘scrubbed’) basis, the trailing P/E multiple on the S&P 500 has expanded a massive 10 points from the March lows, to stand at 27.6x. Historically, when the economy is taking the turn away from contraction towards expansion, which indeed was the case in Q3, the trailing P/E multiple is 15x or half what it is… While we will not belabor the point, when all the write-downs are included, the trailing P/E on ‘reported’ earnings just widened to its highest levels in recorded history of nearly 140x, which is three times the levels prevailing during the height of the tech bubble.”
So, here goes…yes…today, we are officially running our “Crash Alert” flag up the pole here at the London headquarters of The Daily Reckoning. Cross Blackfriars Bridge and you might see if flapping in the wind, between the two huge gold balls on the roof.
Our Crash Alert flag is out because stocks have become too expensive…and because this bounce should be reaching its apogee by now. Already, central banks are talking about cutting back on their efforts to sustain the bounce with easy credit. Australia led the way last week with a rate hike.
It is also becoming clearer and clearer that the feds’ efforts aren’t really working. They can give money to their friends in the banking industry. They can give money to speculators who then make bets on the stock market, among other things. They can bailout major companies. But they can’t really get much money into the real economy.
Au contraire; they take money OUT of the real economy. The feds will absorb $700 billion of private savings this year alone…to finance their deficit. They expect $1 trillion deficits at least for another 10 years. That won’t leave much money for the private sector.
Naturally, Washington, DC, is doing well. While unemployment is near 10% in the rest of the nation, it’s only about 6% in the Washington area.
But let’s face it… What’s good for Washington is bad for the rest of the nation. The feds have used this correction to increase their power…and add to their wealth. The average federal employee now earns twice as much as his counterpart in the private sector – if the fellow in the private sector has a job at all.
A news item tells us that TARP recipients spent $114 million lobbying for their bailout money – most of it going into Washington, of course.
And the feds now own major stakes in what used to be the private sector – insurance, automobiles, and banking industries.
This has been a great period for government. Money, power…it is all floating down the Potomac like raw sewage…and coming to rest in the capitol city.
Our advice to the feds: enjoy it while you can. When stocks fall again…and people figure out what a mess you’ve made of the economy…you’ll be lucky if you aren’t tarred, feathered and run out of town on a rail.
Barack Obama has won the Nobel Peace Prize. Everyone is talking about it. They want to know what they put in the water in Stockholm. Why would the Nobel committee give the prize to someone who hadn’t really done much for world peace? Of course, the committee spokesmen had their lame answers. Now, they’re just hoping Obama doesn’t make fools of them.
It is as if the Pulitzer committee had given the prize to someone whose book had just one chapter; “We hope this will encourage him to finish it well,” says the committee.
But the Nobel committee might have done worse. Barack Obama is not the first American president to win the award. Woodrow Wilson got it before him. Obama seems ready to continue unnecessary wars. But at least he didn’t start them. Wilson sent American troops into the Europea in 1917. He transformed the European war into a World War and drew it out for another 2 years…at a cost of millions of lives, not to mention trillions in expenses.
Wilson was a fool and a humbug, no more deserving of the Nobel Peace Prize than Kaiser Wilhelm. As for Obama, we haven’t quite gotten his measure yet. Fool? Fraud? It’s still too early to say.
But if he had been smart, he would have followed the example of another US president – Millard Fillmore. Go to Washington. You will find no monuments to Fillmore. ’Tis a pity. Fillmore actually kept the peace. Not only that, he made improvements; he installed running water in the White House. Then, when Oxford University offered him a

-more at-
http://dailyreckoning.com/the-biggest-bust-will-follow-the-biggest-bubble/

 

Really good article, thanks for posting it. How on earth do you keep your cool, reading so much of the doomsday b.s. ? When I look back at my life specifically when others report that we had inflation, medical epidemics, etc, I was plugging away just living one day at a time. Admittedly I have been blessed, but it has never been as bad as the jokers make it out to be. Hope that makes sense. Thanks again, and i went to investigate "When Money Dies', it will be a good read also.

 

Great article, thanks. I loved this quote...

“The force of a correction is equal and opposite to the deception that preceded it.”

I bet Sir Issac Newton would appreciate it too.

 

It really Wears on my perception of society and effects the quality of sleep.. :Like hitting yourself with a hammer it feels great to stop, I'm just trying to figure out if I should be bobbing to the left;weaving to the right; swimming or finding some cover .

 

Sumitomo bank says dollar to fall to 50 yen.
If this isn't collapse, I don't know what is.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a_A5nqmw9Dq8

Dollar to Hit 50 Yen, Cease as Reserve, Sumitomo Says

By Shigeki Nozawa


Oct. 15 (Bloomberg) -- The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.’s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.
“The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger,” said Daisuke Uno at Sumitomo Mitsui, a unit of Japan’s third- biggest bank. “The dollar’s fall won’t stop until there’s a change to the global currency system.”

The dollar last week dropped to the lowest in almost a year against the yen as record U.S. government borrowings and interest rates near zero sapped demand for the U.S. currency. The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, has fallen 15 percent from its peak this year to as low as 75.211 today, the lowest since August 2008.

The gauge is about five points away from its record low in March 2008, and the dollar is 2.5 percent away from a 14-year low against the yen.
“We can no longer stop the big wave of dollar weakness,” said Uno, who correctly predicted the dollar would fall under 100 yen and the Dow Jones Industrial Average would sink below 7,000 after the bankruptcy of Lehman Brothers Holdings Inc. last year. If the U.S. currency breaks through record levels, “there will be no downside limit, and even coordinated intervention won’t work,” he said.

China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency. Hossein Ghazavi, Iran’s deputy central bank chief, said on Sept. 13 the euro has overtaken the dollar as the main currency of Iran’s foreign reserves.

Elliott Wave

The greenback is heading for the trough of a super-cycle that started in August 1971, Uno said, referring to the Elliot Wave theory, which holds that market swings follow a predictable five-stage pattern of three steps forward, two steps back.

The dollar is now at wave five of the 40-year cycle, Uno said. It dropped to 92 yen during wave one that ended in March 1973. The dollar will target 50 yen during the current wave, based on multiplying 92 with 0.764, a number in the Fibonacci sequence, and subtracting from the 123.17 yen level seen in the second quarter of 2007, according to Uno.
The Elliot Wave was developed by accountant Ralph Nelson Elliott during the Great Depression. Wave sizes are often related by a series of numbers known as the Fibonacci sequence, pioneered by 13th century mathematician Leonardo Pisano, who discerned them from proportions found in nature.

Uno said after the dollar loses its reserve currency status, the U.S., Europe and Asia will form separate economic blocs. The International Monetary Fund’s special drawing rights may be used as a temporary measure, and global currency trading will shrink in the long run, he said.
To contact the reporter on this story: Shigeki Nozawa in Tokyo at snozawa1@bloomberg.net.

Last Updated: October 15, 2009 03:34 ED

 

I Love this guy earrings and all ( NSFW Language)
getpast the first fewseconds(1:10)of off topic ufo stuff

YouTube- Goldman Sachs, Adam Storch, and the SEC, is there no end to the gall and travesty?

 

He intro's some pretty interesting books. Some not so interesting. He rants that's for sure but the greater msg is what's important. Best to listen to tene with headphones at work!

Byte

 

Murphy's law no matter how I prepare it will be wrong.

 

I would add that if you vote for a Republican or Democrat it will be wrong also. They are one big party and the career politicians who run those parties have let all of this happen.

 

Nearly too late now.

"...but this is America! Nothing bad could happen here." from: Fred tries to wake the sheep. Oh and more: my favorite line, "...and text YOUR vote into American Idol, bury your head in the f**'n sand, cuz it gonna be a BUMPY ride!...oink oink...BOOOM!"