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Dec 6th, 2017
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Joined: Jul 2008
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As usual Numan, you are offering the information that many know deep down, but just don't want to face.
The complete collapse of the US economy and the flawed economic system known as "capitalism" is crumbling before our eyes.
Many tried to warn people.
Many were scoffed and smirked at by people who seem to think that things will always be the same.
The good news is that the destruction of the global economy may be exactly what is necessary to save us. You are right... the sky is falling. In the past 100 years there has never been a slowdown, there has never been a bubble burst in the ecomony. You're correct. The stock market has always closed up in the previous 100 years. Do you have a timeline for this immenent collapse? Or is it like one of those asteroids that loonies believe will crash in the earth.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Nobody said the sky was falling.
What has been said by much smarter people than me long before this, is that our country has been on an unsustainable track for a long time and that eventually something has to give.
After Nixon took the greenback off the Gold Standard, the US Dollar's value has been unnaturally propped up by the Petrodollar cycle.
Michael Ruppert and Ron Paul and Stephen Leeb, among many others laid out the sequence of events that we are now witnessing two and half years ago. The Mortgage crisis, over $100 a barrel oil, the failure of the automakers, lending institutions, and now the banks and the insurance companies.
The reality is that the world has experienced some of the greatest shift of wealth in recent history, from the Anglo-Saxon nations who have dominated the global economy for the last 200 years, to Asia and Continental Europe. This shift in wealth will shortly result in the economic collapse of the Anglo-Saxon nations their money will become worthless, and their economies will disintegrate into anarchy and poverty.
Printing money to solve a nation's economic problem can never be sustained. Eventually, it will lead to the debasing of a nations currency and run-away inflation. This is not about the sky falling, it's about not being afraid to see what is happening right before your eyes.
The rapid increase in the money supply of US dollars is the number one reason America's wealth has shifted from the US to Asia and Europe. In particular, China has benefited enormously from the inflow of dollars which has financed the rapid growth of its economy, providing the capital to develop their competitive export sector. The Asian economies high rates of personal savings have financed their domestic growth as well as finance the US deficits.
The reason why America has such large trade and current deficits is because of the expansion of its money supply, without the corresponding expansion of its productive capacity to produce the wealth to sustain the increase in money in circulation. The lack of domestic savings to provide the investment capital into new manufacturing capacity is also a contributing factor. The cost of maintaining a large military establishment and the decline in the social fabric of society are also significant contributing factors, both of which consume resources that should be invested in the manufacturing sector for a nation to remain internationally competitive.
Pretending as if what is happening right now and is just some sort of cyclical blip on the radar is the approach of fools. It not only ignores the very unique events that have taken place over the last couple of decades, it seems to lack the ability to understand how and why this is happening.
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Joined: Jul 2008
Posts: 1,026
member
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Joined: Jul 2008
Posts: 1,026 |
Nobody said the sky was falling.
What has been said by much smarter people than me long before this, is that our country has been on an unsustainable track for a long time and that eventually something has to give.
After Nixon took the greenback off the Gold Standard, the US Dollar's value has been unnaturally propped up by the Petrodollar cycle.
Michael Ruppert and Ron Paul and Stephen Leeb, among many others laid out the sequence of events that we are now witnessing two and half years ago. The Mortgage crisis, over $100 a barrel oil, the failure of the automakers, lending institutions, and now the banks and the insurance companies.
The reality is that the world has experienced some of the greatest shift of wealth in recent history, from the Anglo-Saxon nations who have dominated the global economy for the last 200 years, to Asia and Continental Europe. This shift in wealth will shortly result in the economic collapse of the Anglo-Saxon nations their money will become worthless, and their economies will disintegrate into anarchy and poverty.
Printing money to solve a nation's economic problem can never be sustained. Eventually, it will lead to the debasing of a nations currency and run-away inflation. This is not about the sky falling, it's about not being afraid to see what is happening right before your eyes.
The rapid increase in the money supply of US dollars is the number one reason America's wealth has shifted from the US to Asia and Europe. In particular, China has benefited enormously from the inflow of dollars which has financed the rapid growth of its economy, providing the capital to develop their competitive export sector. The Asian economies high rates of personal savings have financed their domestic growth as well as finance the US deficits.
The reason why America has such large trade and current deficits is because of the expansion of its money supply, without the corresponding expansion of its productive capacity to produce the wealth to sustain the increase in money in circulation. The lack of domestic savings to provide the investment capital into new manufacturing capacity is also a contributing factor. The cost of maintaining a large military establishment and the decline in the social fabric of society are also significant contributing factors, both of which consume resources that should be invested in the manufacturing sector for a nation to remain internationally competitive.
Pretending as if what is happening right now and is just some sort of cyclical blip on the radar is the approach of fools. It not only ignores the very unique events that have taken place over the last couple of decades, it seems to lack the ability to understand how and why this is happening. I'm not saying that the US economy is not in trouble. It has some very big problems that will have to be resolved before we see the bottom of this downswing and the instability settles. This is a period in which the strong companies... the ones that have held onto their high standard of underwriting risk will take over those that have not. By the end of this 'season' of mergers and aquisitions don't be surprised if a forth or even a third of the banks in the US will no longer exist. However, I don't buy this as the end of the western economies. The yuan is kept under it's real strenght by the Chinese government - it is not market based. That is a huge reason why the trade deficit will continue to go up. Until China is forced into allowing the yuan to be market based they will always sell products cheaper than anyone else around. However, China is paying the price as well. The inflation rate over there has hoovered just below 10% and it is now slowing down a bit but still at over 6% yearly. Food prices in China have jumped 23% in the previous year. So before you start saying that the shift is completed... look at where it is shifting to. China's economy is in even worse position than the US. China's inflation rate The price of Oil has closed under $100 although the blue chip index lost over 500 points in one day.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Aug 2008
Posts: 10,853
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OP
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Joined: Aug 2008
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Sorry, but the sky is falling.
The world financial system is spinning out of control.
Today, September 15, 2008 will have a special niche in history as the day when large numbers of people finally realized that it will no longer be business as usual. We are moving into a new stage of history, into darkness and uncharted terrain.
________
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Joined: Jun 2004
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Administrator Bionic Scribe
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Administrator Bionic Scribe
Joined: Jun 2004
Posts: 21,134 |
With the anticipated takeover of AIG in exchange for a mere $65 billion, the government is becoming a major owner of financial market entities.
What are the implications of this?
Life is a banquet -- and most poor suckers are starving to death -- Auntie Mame
You are born naked and everything else is drag - RuPaul
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Joined: Jun 2004
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Administrator Bionic Scribe
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Administrator Bionic Scribe
Joined: Jun 2004
Posts: 21,134 |
Banks are not the only ones struggling in the growing financial crisis. The fund established to insure their deposits is also feeling the pinch, and the taxpayer may be the lender of last resort.
The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday.
Treasury has already come to the rescue of several corporate victims of the housing and credit crunches. The government took over mortgage finance companies Fannie Mae and Freddie Mac, and helped finance the sale of investment bank Bear Stearns to J.P. Morgan Chase & Co. So the candle is burning on both ends.
Life is a banquet -- and most poor suckers are starving to death -- Auntie Mame
You are born naked and everything else is drag - RuPaul
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Joined: Dec 2005
Posts: 8,707
veteran
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veteran
Joined: Dec 2005
Posts: 8,707 |
With the anticipated takeover of AIG in exchange for a mere $65 billion, the government is becoming a major owner of financial market entities.
What are the implications of this? Bad. So much for free markets, sovereignty, and Congress. Was it Rogers that said that we're more communistic/socialistic than Red China now? It doesn't bode well.
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Joined: Jan 2003
Posts: 6,428 Likes: 1
old hand
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old hand
Joined: Jan 2003
Posts: 6,428 Likes: 1 |
No way to rationalize this situation.
Aside the legalities... How in hell does one "aside" the legalities???... the actions for Messr.s Bernancke, Paulson, Bush and whatever members of government may be included... are outrageous and pander to what we seem to have named the "FAT CATS".
If there are iniquities, let the cost fall on the FAT CATS... and use America's money to bail out the little guy who got caught in a crossfire of greed. We could "fix" the situation for one one hundredth of what we'll be paying to bail out the greedy ones who got into this mess by themselves.
In the very worst days of Boss Tweed and the days of the Robber Barons, there was never such blatant treachery and doubledealing as we're seeing right not.
Too Big to Fail? Never Mind Freddie and Fannie and Bear Stearns and AIG... Too big to Fail????
How about America! America is Not too big to fail.
The last safety nets are gone... The FDIC is broke, and the Pension Benefit Guaranty Fund never seriously existed. Social Security was tapped out long ago, and the Medicare, Medicaid system is funded only on a day to day basis.
The actions of people with very dirty hands is doing in one short three or four months, what was built over the past 230 years.
We have a word for the people who turn their backs on their vows and their responsibilities.
Traitors.
How will the financial crisis develop? Hah... It already has, and there is no person or law that will stop this trip to the status of a proverbial Banana Republic.
Who will defend this treachery? Who has the unmitigated arrogance or ignorance to suggest that these actions are in the interests of the country.
The lessons of Enron were learned too well, and now the world of finance has taken the step towards governing the country in its own interests.
As the closing bell rings at the NYSE tomorrow... watch the joy of the new ruling class.
Last edited by itstarted; 09/17/08 02:01 AM.
Life is Good!
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Joined: Aug 2008
Posts: 10,853
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Joined: Aug 2008
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Beyond the blither of the mainstream media, economists speak out: What Lehman Will Mean for the World"There's a decoupling in the wind, America is essentially finished as a global economic power.
"The US dollar is now finished as the world's reserve currency and we are going to see now some other country rise up and take its place, most probably China."
[SNIP]
"Suddenly last summer, credit was unavailable, and then banks who need credit to live start to tumble.
"So this is gaining pace [and] there's going to be no credit for banks because you're talking about $700 trillion worth of debt in the global economy.
"The entire GDP [Gross Domestic Product] of the world is something like $60 trillion, so this has a long way to go as you deflate all of this debt back to something more sustainable." "Everybody in the West, [or] at least a lot of people, have pensions and these pensions invest in the stock market, and a lot of the shares are actually the shares of banks.
"And when bank shares get hammered, people's pensions get hammered, so everybody loses." "I think the impact is going to be quite profound.
"I think this is a defining moment for world economies, it's a defining moment for the United States, it's a defining moment for all of us that will remember [this] for the rest of our lives.
"People who were around in the 1920s, at the time of the Great Depression - that experience stuck with them for an awful long time.
"And I think that the economic events that we're currently seeing in the world at the moment - they can only be described in similar terms.
"Certainly in my career, I've seen nothing that compares to this and it's difficult to quantify at this stage where all of this is going to lead." "There is a threat --- it lies in these vast markets for credit derivates, credit defaults, swaps, mortgage backed securities and derivitives from them, which are not liquid at the moment, which are impossible to value and which result from the breakdown of prudent regulation and prudent financial practice over the past 30 years, but particularly in the last decade."
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Joined: Jul 2008
Posts: 1,026
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You can write off WaMu as well. I don't see it surviving 2 weeks and I'd bet we'll see a takeover during the coming weekend. Regulators gauge banks’ interest in WaMu NEW YORK - The U.S. government has been reaching out to large banks in an effort to organize a buyout of the beleaguered Washington Mutual Inc., according to a person briefed on the talks between regulators and banks.
The obstacle, however, is that “no one knows what’s in their books,” the person said, speaking on condition of anonymity because of the sensitivity of the matter. There could be, he said, “a minimum amount of value there.”
A New York Post report Wednesday citing unnamed sources said regulators have reached out to Wells Fargo & Co., JPMorgan Chase & Co. and HSBC Holdings PLC, among other institutions. The Post noted that no discussions of a deal between any of those banks and Washington Mutual were under way.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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