US / World Economy in Trouble

Read this article and weep people.....or prepare....up to you.


The Big Collapse Could Be Very Near

 

Maybe I'll shed a tear or two. Only because this collapse isn't happening fast enough for me. I'm looking forward to thriving in the chaos, and I can't find a single person in the flesh that gives enough of a fuck to do... well, anything.

 

I'm with ya on the not fast enough aspect Zeta. I wish we could just get on with it and flush it all away. Only then can we build something better in it's place. Unfortunately this is going to be like a train wreck in slow motion.

 

Good news....the collapse MAY just come faster than we think Zeta. :thumbsup:


Or is that bad news? :icon_scratch:


Dollar's wounds reopen


I liked THIS past the most.....from page 2.

 

Here's another article to back that last one up....


You ain't seen nothin' yet!


Bill Bonner


Provided as a courtesy of Agora Publishing & The Daily Reckoning


Jun 4, 2009


"You ain't seen nothin' yet!"


Actually, we've seen so much already that it's hard to believe there's more coming. But there's sure to be more... and we have a feeling it will be worth the wait.


Yesterday, for example, GM filed for Chapter 11 bankruptcy protection. It couldn't pay its bills. GM was once the strongest corporation on the planet. But it has been around for nearly 100 years. Heck, everything wears out eventually... even a '55 Chevy.


"Obama Nationalizes GM," says a triumphant headline in France's La Tribune.


Triumphant?


Yes, according to the papers, Obama may have been handed the keys to GM... but the old jalopy is worn out. The French say the whole US economic model is ready for the junkyard. More on the French... and the French model, in our other article...


First, let's stick with the USA.


The Dow rose 221 points yesterday - to 8,821... Investors think the worst is over.


Everything is going up. Copper is up 65% so far this year. Oil is up 53%. Soybeans are up 22%. Stock markets are up about 30% worldwide. And gold is 12%. In this company gold is a laggard!


Copper has risen so much, say the papers, because China is buying all it can get. What it is doing with the stuff we don't know; maybe it is stocking up at what it believes are low prices.


Maybe it is hedging its bets. China has the biggest pile of Treasury bonds in the world - $768 billion of them. That's 768 billion reasons to worry. Because each T-bond is denominated in dollars... and while everything else is going up, dollars are going down. Yesterday, the dollar touched a new low against the euro for this year - at $1.42.


T-bonds are down too - minus 5% for the year. It would not be at all surprising for the Chinese to be stockpiling oil, gold, copper and all the other inflation hedges they can get. Their dollar-denominated bonds may go down... but their commodities and gold would go up. Overall, they'd come out even. You can also hedge your own nest egg with commodities.


Yet this week, Mr. Tim Geithner - the big banks' main man in Washington - is in China trying to reassure the Chinese that America takes its financial obligations seriously. That's something we never expected to see either. America may have the strongest economy on earth. But if the commies stop financing it, we're out of business.


So Geithner is in China, hat in hand, like a major debtor called into the bank president's office. Geithner, of course, has no choice. He has to go... and say what he has to say. He will use all the right words. He will show the appropriate seriousness... he will smile when it is called for... and put on a grave face when he needs to.


The trouble is, there's little he can do to help the Chinese. They want him to protect the dollar and the bond market. That's something he can't do.


"It will be helpful if Mr. Geithner can show us some arithmetic," said Yu Yongding, a former advisor to the Chinese central bank.


Yes, we'd like to see that arithmetic too. How do you add $1.75 trillion in deficits... pay for it with funny money from the Fed... and still come out even on the value of the dollar? There's no arithmetic we know of that works in the Chinese favor. Right now, the numbers, and the logic of the situation, are telling us that feds aim to create inflation. Instead of trying to keep prices under control, they're trying to get them to go up. That's yet another thing we didn't expect to see!


The US government is less concerned with protecting foreign lenders than it is with getting the US economy back to its old E-Z money ways. Cheap money is what people want. Cheap money is what the feds are trying to give them.


Today - will wonders never cease! - the US is pushing its phony money all over the world. The Chinese, meanwhile, are champions of financial integrity. Just wait until they give up on US bonds... then, we'll really see something we ain't seen yet!


Jun 3, 2009


Bill Bonner


email: DR@dailyreckoning.com


website: The Daily Reckoning

 

Right now the three things to watch are the bond market, commodities, and the US dollar values. The powers that be are mixing a deadly concoction right now folks....the Chinese see it for what it is and are preparing for it BIG TIME. While I don't stand for a lot of the things the Chinese do I will admit that they are masters of their craft and they play a much better hand than we do here in the US. SO......one would be a fool to not watch and learn. I'm telling everyone I know to GET INTO GOLD, SILVER, or OIL....right now. Time may just be very short and any savings you Do have in US currency is about to be wiped out by hyper-inflation. Be smart....think about this scenario and how you can use it to your advantage by stepping off the Titanic and into a life boat.....while there's still one to get into. :icon_confused:

 

Just in case you need more convincing.


Economic policymakers have created a perfect storm

 

Funny how this ALL started to go into action just after the Bilderberg meeting while for months prior we've pretty much been in a stall. Think what you will of conspiracies, but this is just too coincidental to be happenstance.

 

I'm on a roll today. :thumbsup:


US Stuck in Inflation-Causing Positions

 

Don't forget to stock up on lead too!

 

Just one more....promise. :laughing1:





Dollar's fate written in history

 

Already did that.


Bad news is...most of that lead is hard to come by now.

 

Couple more articles giving a bird's eye view of what's REALLY happening in out there at present.


Securitization: The biggest rip-off ever

Why the Chinese laughed at Geithner

 

Mermaid, if they have a D or an R by their name you know they are full of chit. Did you know in the last Bush election they actually had the green party candidate arrested because he tried to join in the televised debate?


The system is rigged it doesn't matter if you pick D or R, they both fuck you its just a matter of which hole they fuck you in.


I don't agree with you on socialized medicine or socialism in general. Just because I know a lot of people in europe and talk to them regularly on forums and honestly their system works better. The free market requires limited supply and demand to work and any time that doesn't exist regulation is needed. In the case of healthcare there is limited supply (although its artificially limited far beyond that) but there is no limit to demand. There simply is no price tag on life. The biggest reason I support socialized medicine is that there is nobody else to compete with, we are the wealthiest nation in the world, we can afford to pay more than anyone else and we are competing with socialized programs that are trying to care for their people. In other words, our system is driving up the price for the rest of the world despite the fact that we have a fairly poor healthcare system.


Back in the day when people took pride in their work and understood the value of not just making a buck but putting out the best product they could and make that buck the system worked better. Today the pharmaceutical industry takes the same drugs and makes minor changes so they can re-patent them and release them. Nevermind that they don't actually work any better than the existing medications that now have generics. They have forgotten the honest part of making an honest living. Honesty isn't just not technically , an honest businessman provides the highest quality product and/or service he can to his target audience while still making a living.


As for the politics, one of the worst things that ever happened in this country (although you shouldn't con yourself into believing the american ideals ever were actually in place, including in the time of the guys who wrote them) was the con where they convinced people that a two party system was better for them. We didn't have a one party system before that, we had a no party system, where every candidate is judged on his own perceived merits and not the carefully designed and perfected sham of an entrenched political party.


They actually monitored the brains of people who acknowledged a party affiliation a couple years ago. I think it was at Harvard but not 100%. In any case, the test showed that when these people were presented with problems and challenges they largely utilized the creative and problem solving portions of their brains. However, the moment a political party was introduced into the equation they began analyzing issues by accessing memory and had little activity in the creative portions of their brains. In other words, people stop constructive thought and analysis with a party system and view everything in terms of what their party has taught them previously.

 

Well, there is another side of socialized medicine, I don't have 100% facts, but a british citizen on anothe forum was talking about their change to the socialized system and said that doctors and hospitals were nearly overwhelmed that the health care system was near collapse. And in the past there were stories of Canadian's on waiting lists for life saving procedures with a wait time longer than their life expectancy.


While I am certainly not trying to defend the broken medical system, there is still evidence that socialized medicine would not be any better. But over all I have to agree with you that any attempt to change our current system is better.


Pharmasetutical companies our one of the many overlooked great evils of this day and age.


And I agree with everything you had to say about politics. I've been to several forums recently where mindless republican drones were doing everything in their power to stir up anti-(whatever) sentiments, simply regurgitating Fox news and other conservative crap with a blind devotion to their idols and a decided lack of facts. Such as calling Obama a Nazi.. .


While I am certainly not saying D's are any better at times, in my own personal observations they at least seem just marginally more open to other ideas and change.


I certainly agree this two party system is a true great failing of America. And to add a little historical perspective, these two parties are the decendants of the two major parties of Britian in the 1700's. It was not until much later that Britian sub-divided into a many party system, sometime after the change between constitutional monarchy to a Parlimentary system.


The US's failure to follow that example is both foolish and a proof that our system of government has consistently failed to evolve along the lines of the Constitution. It's not as if the founding fathers were somehow more noble than ordinary men, but the certainly tried to hold the government above such concerns, something that has consistently failed to happen. Incidentally, there was no legal precedence to ban substances until the 1890's tax stamp act, which was overturned in the 1970's.. when Nixon f@cked it up for everyone. Beauracy at work, god bless the @ssholes..

 

A quick audio interview with Ron Paul.


Dr. Ron Paul & Chris Waltzek


and...


Peter Schiff on The Daily Show

 

Everyone NEEDS to read this article.


http://www.drschoon.com/articles%5CAEFFiatInDeathThroes.pdf