Comments (139)
Thursday, December 31, 2009
By Phil Maymin
Courtesy of John Williams
Economist/statistician John Williams shifts through the government’s rose-tinted data
Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.
Maymin: So we are technically bankrupt?
Williams: Yes, and when countries are in that state, what they usually do is rev up the printing presses and print the money they need to meet their obligations. And that creates inflation, hyperinflation, and makes the currency worthless.
Obama says America will go bankrupt if Congress doesn't pass the health care bill.
Well, it's going to go bankrupt if they do pass the health care bill, too, but at least he's thinking about it. He talks about it publicly, which is one thing prior administrations refused to do. Give him credit for that. But what he's setting up with this health care system will just accelerate the process.
Where are we right now?
In terms of the GDP, we are about halfway to depression level. If you look at retail sales, industrial production, we are already well into depressionary. If you look at things such as the housing industry, the new orders for durable goods we are in Great Depression territory. If we have hyperinflation, which I see coming not too far down the road, that would be so disruptive to our system that it would result in the cessation of many levels of normal economic commerce, and that would throw us into a great depression, and one worse than was seen in the 1930s.
What kind of hyperinflation are we talking about?
I am talking something like you saw with the Weimar Republic of the 1930s. There the currency became worthless enough that people used it actually as toilet paper or wallpaper. You could go to a fine restaurant and have an expensive dinner and order an expensive bottle of wine. The next morning that empty bottle of wine is worth more as scrap glass than it had been the night before filled with expensive wine.
We just saw an extreme example in Zimbabwe. ... Probably the most extreme hyperinflation that anyone has ever seen. At the same time, you still had a functioning, albeit troubled, Zimbabwe economy. How could that be? They had a workable backup system of a black market in U.S. dollars. We don't have a backup system of anything. Our system, with its heavy dependence on electronic currency, in a hyperinflation would not do well. It would probably cease to function very quickly. You could have disruptions in supply chains to food stores. The economy would devolve into something like a barter system until they came up with a replacement global currency.
What can we do to avoid hyperinflation? What if we just shut down the Fed or something like that?
We can't. The actions have already been taken to put us in it. It's beyond control. The government does put out financial statements usually in December using generally accepted accounting principles, where unfunded liabilities like Medicare and Social Security are included in the same way as corporations account for their employee pension liabilities. And in 2008, for example, the one-year deficit was $5.1 trillion dollars. And that's instead of the $450 billion, plus or minus, that was officially reported.
Wow.
These numbers are beyond containment. Even the 2008 numbers, you can take 100 percent of people's income and corporate profit and you'd still be in deficit. There's no way you can raise enough money in taxes.
What about spending?
If you eliminated all federal expenditures except for Medicare and Social Security, you'd still be in deficit. You have to slash Social Security and Medicare. But I don't see any political will to rein in the costs the way they have to be reined in. There's just no way it can be contained. The total federal debt and net present value of the unfunded liabilities right now totals about $75 trillion. That's five times the level of GDP.
What can we, the people, do to stop the government from, you know, taking all our money?
We should have acted 20 years ago. There's not much you can do at this point to prevent the eventual debasement of the dollar. This involves both sides of the political spectrum. It's not limited to the Republicans or the Democrats. They've both been very active in setting this up.
What can individuals do?
The only thing individuals can do now is look to protect themselves. I wish I could see a way, but shy of severe slashing of the social programs that is so politically reprehensible and would create such problems and social unrest, I don't see that as a practical solution.
If you're a young 20- or 25-year-old guy or gal, would you move to another country? What would you do?
We still have a great country. We're going through a period of economic pain. It's happened before. This is the kind of thing that's taken us decades to get into and it will take us decades to get out. Although the hyperinflation is going to be limited largely to the U.S., the economic downturn will affect things globally. I can't tell you how things will go with a hyperinflationary Great Depression, which is where I see things going.
It's the type of thing that will tend to lead to significant political change. People tend to vote their pocketbooks. You could have the rise of a third party. You could even have rioting in the streets. I'm not formally predicting that — anyone can run these different scenarios. For the individual, what you need to do, from an investment standpoint, look to preserve your wealth and assets. Don't worry about the day-to-day fluctuations in the markets. What I'm talking about here is over the long haul...
[Gold is] going to be highly volatile, as will the dollar, over the near term, but longer term, physical gold I would look at as a primary hedge for preserving the purchasing power of your wealth and assets. Maybe some physical silver. Get some assets outside the U.S. dollar. I might even look to move some assets physically outside the United States. The key here is to look at a longer range survival package, battening down the hatches, and preserving your wealth and assets during a very difficult time. Once you're through that, you'll have some extraordinary investment opportunities, and I can't tell you what it's going to be like on the other side of this crisis.
Dr. Phil Maymin is an Assistant Professor of Finance and Risk Engineering at NYU-Polytechnic Institute. The views represented are his own.
Comments (139)
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What country would you sugest we move to.?
Posted by j.o. cook on 12.23.09 at 12.44
Now my stomach hurts...
Posted by Dan on 12.23.09 at 14.35
What country?
If you're a college grad, South Korea is a fantastic place to be, working as an English teacher. The people are incredible, the lifestyle and food are healthy (except for the soju), and the money is good...
Posted by Headless on 12.23.09 at 16.02
Quisling Gold Bugs should be rounded up, tarred, and feathered.
ESAD.
Posted by CecilRhodes on 12.23.09 at 18.40
This is plain scaremongering. I have been reading these predictions since decades.
Posted by Gulrez on 12.24.09 at 7.02
The last time we were in a debt deflation period WE were the creditor nation, this time we're the biggest debtor nation.
This isn't going to end well.
Posted by griswold3 on 12.24.09 at 7.03
Boy Scout Motto: Be Prepared!
You will need guns and a lot of ammo. We are on our own. Get out of debt, be liquid and keep your passport up to date.
Posted by Jimi on 12.24.09 at 10.55
Nobody can predict the future. I doubt it will be that bad.
http://www.numbersusa.com/change/immigration/numbers/
Posted by Larry on 12.24.09 at 13.05
Re "quisling goldbugs" getting rounded up. .
What an idiot.
It's the quisling supporters of the traitors in DC that need to be rounded up. The dollar is finished because of them, not "gold bugs." G
Go ahead, you idiot quisling supporters of global trade and the fiat currency system--leave your stuff in paper assets. The gold bugs have lots of guns and ammo also to protect their solid currency when you have nothing left except dollars for toilet paper, and dry marijuana fields.
Posted by WayneI on 12.24.09 at 14.16
With unfunded liabilities as high as they are, it takes no genius to ask the simple question "Who is going to pay for it or Where is the money coming from".
Posted by George Kadlec on 12.24.09 at 17.15
George, one more question to answer your question: Will it be the elites of both political parties who got us into this mess or will it be the rest of us?
Posted by Tom E. Snyder on 12.24.09 at 18.35
Should've listened to RON PAUL
Posted by Norm on 12.24.09 at 20.20
It seems to me that we are poised for a much worse situation than the 30's because at that time more than half the country were still on farms and could produce most of their own food. Any small disruption in transportation could be disasterious for todays food supplies.
Posted by Paul on 12.24.09 at 21.31
Gold is fine, but what if the government confiscates it as did FDR?
Posted by Elaine on 12.24.09 at 21.37
I started raising gamebirds for hunters a few years ago for extra money. Now I am glad I have them to eat if things go really bad. My solution; Barter, pay as little to the feds as possible. I have always said, if you don't hire them, or shop at their stores they will go away. I meant this for a particular type of people, but, now it is the federal government. We MUST overthrow ( legally )the government. Throw out our present "leaders" and regain control. There is a clause in the Constitution for this, although I cannot quote it as of this post. All Americans that do not like the way this glorious country is headed MUST unite. No more Rep's, no more Dem's. All Americans. Let us return the USA to what we remember.
My Father served in WW2 as a Navy man on a tanker. I was taught to love my country, which I do. I was taught that we live in a Representative Republic, meaning that the majority must be heard on concerns of national interest. That means the people We the People put in office MUST vote our way. In terms of obamacare they have not, as unfortunate as it is. Therefore all who misrepresented the American people must leave office, not by votes, by impeachment now!
Every poll showed us that America does not want government controlled healthcare. EVERY poll. From 49% against to 70% against. Write your Congressmen, tell them that you will do all you can to end their term in office. If you lasted this long reading this you are as serious as I am.
I live in Illinois, and we have a saying here; Dick Durbin. ( Before he dicks you.)
Posted by Illinois Minuteman on 12.24.09 at 22.33
Before we stiff life-long contributors to Social Security or earned veteran pensions, let's go after the hundreds of billions given (yes, given) to Wall Streeters "Too big to fail". The AIG swindle for the benefit of counterparties to worthless CDS's and the quadrupling of Goldman Sachs shares, the dumping of "toxic assets" at the Fed are just indicators of the massive looting
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What we now have is a fiat serfdom where people work for Dollars which retain a minute portion of their value. Today, it takes approximately $22,000.00 to purchase what $1,000.00 purchased in 1913 when the Dollar was valued at 100 Cents; that is a substantial depreciation in the actual purchase value of the currency.
Essentially, people work for pennies an hour, but because they are fooled by the face value of the currency they actually believe they are making a certain amount of dollars per hour. When a $10 Bill has the purchase value of about 30 to 40 Cents then it can easily be seen just how devastating such a system of fiat currency really is, not only socially, but economically. It is not only the currency that is depreciated, but the economic efficiency that is depreciated, the power of a country's currency directly effects the economic productivity of that country. As the purchase value of a currency is diluted through inflationary depreciation the economy becomes dependent upon the only power that can keep it running and that is the government's central planning powers, but that can only last for just so long before its ability is also depreciated in potency. Effectually, we are a Peonage, Serfs who labor for little in return. We have a vampire economy where the government siphons off productivity in an effort to maintain the system as a whole.
At one time, when our money was actual money property, a person held Allodial Title to the money he or she earned, today we have Fiat Notes that bear no promise of redemption. Today, money is not the property of the people it belongs to The State apparatus and The State cannot keep the feeble promises it makes so easily. Politicians, on whole, lie and voters still believe their lies, that will soon end as the promises the politicians make fall on deaf ears.
Posted by Republicae on 12.25.09 at 3.25
Dear Brothers and Sisters, Sons and Daughters of Liberty,
There are only two types of human beings.
One type just wants everyone to leave everyone else alone and these humans are students and advocates of the Philosophically Mature Non-Aggression Principle.
The other type refuses to leave others alone and these humans are the Mobocracy Looter Minions with their hords of bureaucrats, jackboots, and mercenaries that perpetuate the perpetration of the loot and booty gravy-train. Please help us and yourselves by ending the rob-peter-to-buy-paul's-vote bread and circuses of the doomed Amerikan Empire.
You are either the one...or the other.
The John Galt Solution of Starving The Monkeys is the only solution. Stop funding and forging your own chains and shackles. What are you leaving for your children, grandchildren, and humanity!?!
The Mobocracy Looter Minions must be allowed to consume everything around them, then each other, and finally themselves. There is no other way. Ayn Rand wrote about it over fifty years ago and it rings as soundly today as it did then.
Get your copy of Starving The Monkeys by Tom Baugh today, before the book is banned and the author is hunted down and Vince Fostered!
Sincerely,
John and Dagny Galt
Atlas Shrugged, Owner's Manual For The Universe!(tm)
http://www.starvingthemonkeys.com/
http://voluntaryist.com/fundamentals/introduction.php
http://marcstevens.net/
http://www.freedomainradio.com/
.
Posted by John and Dagny Galt on 12.25.09 at 3.57
Even your "mild" predictions (compared to Celente, Faber, Schiff) give one pause for concern. I just wish there was evidence that the dollar is not going to be destroyed and that we are not going to see a severe depression.
My mother grew up in the Great Depression in rural North Carolina. At that time, people had skills. Her father would resole their shoes which were bought each year with the funds from butchering and selling a hog, and her mother would beat flour sacks until soft to make small dresses for her and her two sisters.
Most of us now face depression without the skills to grow our own food, repair our clothes, heat our homes, or draw water from our own wells.
This one may be worse.
Posted by Charles on 12.25.09 at 3.58
Yes, Virginia, there IS a Ron Paul...
Dear Editor: I am 8 years old. Some of my little friends say there is no Ron Paul. Papa says "If you see it in The Sun it's so." Please tell me the truth; is there a Ron Paul?
Virginia O'Hanlon.
Virginia,
Your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men's or children's, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.
Yes, Virginia, there is a Ron Paul. He exists as certainly as peace and freedom and prosperity exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Ron Paul! We should have no enjoyment, except in sense and sight. The eternal light with which liberty fills the world would be extinguished.
Not believe in Ron Paul! You might as well not believe in the Constitution! The media might hire polling firms that conceal Ron Paul's true level of support among the people, but what would that prove? Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.
No Ron Paul! Thank God, he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the hearts of free men.
Perhaps the line above should read, "Papa says, 'If you see it at LRC it's so.'"
Regards,
Darren McPhilimy
Tarentum, PA
Posted by wgadget on 12.25.09 at 4.43
Gold is good, silver is better. The Feds might try to outlaw private gold ownership, but it is impractical to apply that to silver.
"Junk" silver - that is pre 1965 US coins are a great safety net and still inexpensive. Interestingly, a silver quarter or dime still buys pretty much the same thing it did in 1964, maybe even a bit more.
Ammo is good even if you dn't have a gun. Stock batteries, go to a warehouse club and buy bulk batteries. I just got 48 packs of AAA for $6 at BJ's and they have a 12 year shelf life, You can always barter with those. Also liquor, salt, sugar, flour, get warehouse club packs of ziplock baggies to make standard packs to trade. Motor oil, again get big cases, it stores for a long time. Also socks buy 6 packs socks. I got a 6 pack of Champion white socks at Costco for $5. Also Cheerios in bulk, vitamins. Anything that stores.
These items are what we call a "store or value" not perfect as money but better than FRN's that will become toilet paper sooner or later.
Posted by Hugh McGregor on 12.25.09 at 5.16
Yes, others have cried the echo before. The problem is more and more are crying the echo and fewer are believing. That is when it catches everyone by surprise.
I figure bartering and another underground currency will be used to avoid high taxation and inflation. It comes down to the creativity solutions individuals will develop and the masses pick up. So it comes down to being alert to your surroundings.
Forget your government solutions which have inflated you to this end for solutions. Inflation is delaying your debt today for a bigger one tomorrow. Just a matter of time before the bill is due. Welcome to the party of ingenuity that is coming and allows my ingenuity to be rewarded again.
Posted by charleydan on 12.25.09 at 6.12
Get out of debt as fast as you can. Get any gold and silver you can afford. In Argentina, signs went u pall over the place which said "I buy gold." It will be barterable for what you need.
Posted by Teknikid on 12.25.09 at 6.44
SAve your SELF !!!!!!!!!!! BUY SILVER BARS!!!!!!!!!!!!!!!!!!!!
SAVE your Wealth BUY SILVER BARS!!!!!!!!!!!!!!!!!!!!
SAVE Your Family BUY SILVER BARS!!!!!!!!!!
BEfore Its TOO LATE??????
Posted by Silver Bars on 12.25.09 at 8.24
To the Chinese person who asked what is YK2:
It was a theory that all computers would crash at the beginning of year 2000 because of the way they had been programmed.
Posted by Elaine on 12.25.09 at 10.04
Friday, December 25, 2009
How Best To Deal With Hyperinflation.
Well, we are social beings so we need to begin developing our social network of persons who are free from religious prejudice and who recognize the beauty of classical liberalism.
It is these cells of unity and justice that will protect private property rights, identify and use a commodity money, educate one another, and assist one another.
These cells are the nuclei of the future diverse classical liberalism societies that will compose the peaceful and prosperous worldwide classical civilization.
Posted by Bruce Koerber on 12.25.09 at 10.25
The fractional-reserve banking management of a fiat debt-based money must be ended. It may still be possible to educated the American public about this scam, although I have my doubts for sure. The people have been rendered truly clueless by the puppetmasters but they sense something is drastically wrong. What we don't need is some future Lenin or Hitler arising to promise us glorious resolution through statolatry.
Posted by acudoc on 12.25.09 at 11.46
Gold is good,silver is better, but guns and ammo are the best. Second would be canned foods. Lets face it, if you have no place to use that gold and silver what good is it?
Posted by Steve C on 12.25.09 at 12.36
"Gold is fine, but what if the government confiscates it as did FDR?
Posted by Elaine on 12.24.09 at 21.37 "
Elaine, you are correct. Except, it is a lie that you have to give up your gold because fat bureaucrat said so. Don't even acknowledge you have any. The big secret about FDR is that only the dumbest gave up their gold. He failed to collect most of the gold.
Posted by Someone on 12.25.09 at 12.39
I wonder how all this will affect US colony states like the Philippines? I've been thinking about it and I can't seem to analyze how this will hurt my country, whose leadership act like a lapdog for US interests
Posted by Dodie on 12.25.09 at 13.03
Excuse me, "industrial production"? What would that be? Manufacturing toilet paper and junk food? America's industrial base was dismanteled by the many greedy and criminal traitors we have had on Wall Street and in the Congress, LONG AGO. Too bad the ripvan winkle American public has been unaware of this for so long. Stupid is as stupid does.
Posted by Bobby on 12.25.09 at 13.34
Willians predictions are sound. Americans will live with high inflation, actually they are already in it without knowing it. It won´t be long before the Trilion Dollars Era pass into the Quatrilion Era. I can say from experince that people get used to inflation and can take a lot of price rising for a long time. In Brazil we have high inflation (30 to 100 per cent a year) for decades and then we have hyperinflation (100 to many thousands per cent a year)for many years. My first salary in 1985 was a million cruzeiros and it was the minimum wage. A few months later that much money could not buy a bus ticket. How could be that no revolutions ocurred? The trick is that nobody knew the real cause on the inflation (huge amounts of new money printed by the government), so people blamed businesses for the raising of prices and demanded the goverment to " do something". The government froze prices and people were happy, but then things disappeared from the markets. There were riots and civil unrest, but never agains the real source of the problem, the government itself! In 1994, the brazilian government started to finance its deficits more with tax and debt and less with money creation, so the inflation went down to 5-7% a year. The problem is that the USA government can´t do that, debt is already too high and tax raising is too unpopular. So inflation it will be. The dollar will be worthless. Get used to high denomination notes ( We have 100.000 notes here) for a while, but don´t worry: the authorities will cut zeros out of money from time to time.
Posted by Pedro on 12.25.09 at 13.47
You USians are like kids learning to walk. You have no idea of how to deal with high inflation as we South Americans have.
First of all the going advice is "get out of debt" /// What for? if the dollar tanks you will be paying your debts with a cigarette pack. In South America for a long time the trick was to borrow so that inflation took care of the debt. Don’t walk out of the house and leave it.. just stay till you are kicked out. Maybe pay once in a while a bit (about the rent you would pay in some other place) If things happen like John William says debtors will capitalize themselves and settle their debts with peanuts. I repeat, this was the going game in many countries of South America
Second, if you want to hurt the ruling elite STOP BANKING AND USING BANKS. Turn your money into cash as soon as it is credited and boycott the banks. Pay cash. Junk your credit cards and do not consume with them, much less finance yourself with them as they charge outrageous rates... that is unless you plan to stick them with the unpaid balance. This way you will turn the fractional reserve banking trick against them as one dollar out of the system means 9 dollars that are called back in form the system.
Third, barter using your own skills and trade even if it means using the worthless money as a reference for short periods of time. This means do not bill your goods or work. Request cash. This is called underground economy. They want to steal your money from you for their convenience. Learn how to keep it to yourselves. South Americans use this a constantly.
It is not a sin to avoid paying dues to the government mobsters.
The government-critters are playing the game for themselves and their minions. Do you want to keep feeding them? If everybody does it they do not have the means to control and coerce.
Keeping alive and well means you will be able to fight the battle and be there alive and kicking and when the recovery time comes you will be positive for it.. If you follow their system you will be in misery soon and worthless. Pull others into this club.
Posted by Oliver on 12.25.09 at 14.39
We are witnessing the greatest theft in the history of the world and the thieves have named it "bailouts"
Posted by Tom on 12.25.09 at 15.13
FDR confiscated gold in order to devalue the currency, since at that time the dollar was backed by gold. Today the dollar is not backed by gold, but instead is backed by debt, so there would be no purpose in confiscating gold today. The value of gold today is in jewelry.. it is such a pretty yellow color. Gold also might have value if our gov't collapses and you want to retain wealth between regimes, but if you hold gold during a Mad Max scenario you do become a target for bandits.
In order to devalue the dollar they simply need to issue money that is not backed by any debt (printing). While this would probably cause interest rates to ramp upward as existing debt becomes worth less, it would be this simple and it would ease the burden of debtors (like the US Gov't).
Posted by FYI on 12.25.09 at 18.55
Awwwwwe. So sad to hear all the people so worried about thier safety and ability to survive the assult of big bad federal government on their money and way of life. Now what did all these good people do to protect 50 million babies that we destroyed by abortion over the past 40 years. Oh yeah, nothing. right. And the big bad fed said you gotta keep killing your children. It's about freedom and choice. They don't have no rights. They don't get no protection. Fall in line and kill the little vermin. And so we did. Boohoo now it's time to pay. What should we do? Buy gold or buy silver or buy canned food or buy guns and ammo. Oh what shalllll we do? How shall we protect ourselves against the big bad fed and each other at this point? Everyone is a bloodsucking idiot that cares for no one but themselves cause we got pretty comfortable killing 3000 people a day. Maybe we are all expendable now. Oh well, too bad. What shall we do? After all, our lives are more important than anyone elses.
Posted by broken on 12.25.09 at 21.51
Won't somebody save the children!
broken, keep wailing on
Posted by Dave on 12.26.09 at 4.12
So we should be rounded up for protecting our wealth with the only constitutionally legal form of money and shunning illegal Fedral Reserve IOUs? If things get as bad as what Mr. Williams informally predicts (and I sincerely hope it does not) , then "gold bugs" will be heros of the economy because gold and silver will provide a form of sound currency then that anyone holding paper money will (perhaps literally) be dying to get their hands on.
If there had been nobody hording real money, the country would be even poorer.
Posted by Bruce G Culver on 12.26.09 at 4.18
If you're a young 20- or 25-year-old guy or gal, would you move to another country? What would you do?
Teach English in China for 20 hours a week, and learn Chinese for 20 hours a week.
Think 10 years down the road when times are tougher and a skill that will set you apart from the pack.
Posted by Wang on 12.26.09 at 5.12
FYI has a point about gold confiscation but there is another possibility.
After hyperinflation hits and every stupid solution has been tried and failed, the government may want to go back to a gold backed currency (the way the Weimer Republic switched to asset-backed Rentenmark). The irony is that while the original gold confiscation was carried out to go off the gold standard, this time it might be done to go back to the gold standard.
Posted by Dave in LV on 12.26.09 at 5.31
There is only one effective solution: (1) end usury and (2) end bank and government control over money. Usury is the main systemic problem, see:
http://www.naturalmoney.org/introduction.html
If someone brought a 1/10 oz gold coin to the bank in the year 1 AD, and the money remained there until the year 2000 AD, collecting a yearly interest of 4%, the amount of gold in the account would have been 3.6 * 10^31 kilograms of gold. This is 1.9 * 10^27 cubic metres of gold weighing 317 times the complete mass of the Earth.
An ever increasing amount of debt is needed to pay for the interest on the money. At some point this leads to crisis.
Posted by Bart klein Ikink on 12.26.09 at 5.41
gold,guns,grub,god,gas and guard dogs!
Posted by pat ruvolo on 12.26.09 at 6.11
Re "quisling goldbugs" getting rounded up. .
Wow..............what an ignorant cuss. I am not from the US thankfully but have been warniing family there for 8 years. Now they have no house. Hmmmmm gold was $280.00 when I dug in and have made $800k so far.... Paid off my house at 30 now 44.......how can a guy go wrong with this plan.....WAKE UP CLUELESS WONDERS.
Posted by Phil on 12.26.09 at 6.54
we are only 2,3 years froms some form of nuke exchange-10 years at the most-6 inches of concrete or 1 foot of soil will mostly protect you-then what kind of world will we have?
Posted by doug on 12.26.09 at 7.28
Here is a Christmas Present for you folks that haven't shifted your retirement out of the dollar. John Williams is not a scare monger and he did not tell you the real truth, which is much scarier. There is not alternative to the dollar and all it's brethern paper promises. Never has the whole world depended on one type of guaranteed failure. Every unbacked currency in the whole history of the world has defaulted. Paper money bats 1000 for failure, so you don't need to be too smart to see the train wreck in front of us, which has already progressed quite a distance down the standard road to money hell. You better start reading some monetary history and stop reading the paper, which pretty much only tells the government/banker/master's line of krap which is designed to keep you stupid and at work for them. At this point it is hard to tell if we are dealing with malevolence or just standard hubris and stupidity, but either way, the world is going down the crapper. What does it mean to go down the crapper? No banks, no money, no good gov. just the police and army and no one but your self and your really close friends. It will be a whole new ballgame and when it is over, there will be no more than half the people alive today. Do you plan to check out of the game early, or make a run at lasting it out? If you wan to stay in the game, buy lot's of silver and gold. If you can't buy lot's, it was nice to know you.
Posted by puresilver on 12.26.09 at 8.19
They have been predicting a big California earthquake for decades... it hasn't happened. It will never happen...
Great logic there... rofl.
Posted by Nathan Brazil on 12.26.09 at 8.58
I have traded in Zimbabwe for many years and I would point out that the value of their stock exchange index, as rudimentary as it is, always exceeded the rate of inflation. My point: Equities will remain a classic inflation hedge and specifically those underpinned by hard assets and currencies.
Posted by redtopolino on 12.26.09 at 9.11
What is the logic of the $#*)&^ who suggested paying off debt before a currency collapse???
Posted by PlanB on 12.26.09 at 9.14
It is a shame that there has to be such pigs in the world. My Grandfather came from Germany and the pigs did the same thing to the economy in Germany before WWII. The Federal Reserve, Goldmans Sachs, and the rest of the money changers are part of the same tribe who worshiped the golden calves in the Sainai Desert. They have been pigs for over two thousand years and will never cease to be pigs. The time has come to put these criminals in prison at best.
Posted by D. Brown on 12.26.09 at 9.35
The anger needs to grow. We do NOT need to put them in prison. We need to make them fear we will do more.
Posted by Decomposed on 12.26.09 at 10.36
If you want the real, Behind-the-scene perspective..
Read the Epiphany Deception. DeceptionDay.com
Posted by MH on 12.26.09 at 12.00
Posted by pat ruvolo on 12.26.09 at 6.11
Pat,
Great going bro.
I hope you have reinvested that into waht you made it from.
And, other barterable items/
I know not wher you live, but if posible, relocate to a sparsely populated friendly area........and take you families to saftey.
This Dude is going up in smoke soon, sooner tha anyone thinks.
I assume your out of USA.
But, are you & yours safe.........................
Like you I am debt free, for what that matters.
But, am still stuck USA.
Familiy.
Folks, if you cannot afford to move, at least stock up on Non perishables, and tradable commodities, and do not tell ANYONE what you have,where it is, or your plans.................
You have God,Faith, guile, and wisdom, You, and your nuclear family.........that's it.
Your best friends will turn on you like rabid animals, IF they are not preparing, and know you are.
Keep your plans, and mouths SHUT.
Posted by Abaddon on 12.26.09 at 13.33
Debt has been the demise of country's and there currencies ever since China invented paper currency. We will be no different. We do not have some grandioso plan to pay it off. No country ever has. Not one. They all debased there currency back to ZERO. Also FDR did not confiscate GOLD COINS. The executive order issued allowed $100 to be kept in bullion. In 1933 that is. There is no practical solution. Protect yourself. This is the real thing. Gold is the real thing. You can not create wealth out of thin air.
Posted by brian on 12.26.09 at 14.31
FDR state directed credit bypassing the corrupt and usiorus banking system. Where is HARRY HOPKINS down with harry poter and harry ried
Posted by george eddleton on 12.26.09 at 14.34
To the people who say get out of debt. Won't it be easier to pay of credit cards and mortgages with worthless dollars? And spend the cash we have now on batteries, socks and canned goods.
Posted by DFH on 12.26.09 at 14.53
you know its over when the fed starts printing large bills....$500.00, $1,000.00, $5,000.00, $10,000.00 and $100,000.00....the plates are in the vault......why print $1. billoswhen you can make a big one for the same price.......
Posted by george nolanj on 12.26.09 at 15.59
Quite different back then, when 20$ gold pieces were part of general circulation. Even so, of 27 million ounces in circulation when FDR's order came out, 3.9 million ounces were turned in - an almost laughable amount.
Posted by Donzi Lawncare on 12.26.09 at 16.26
"Before we stiff life-long contributors to Social Security or earned veteran pensions, let's go after the hundreds of billions given (yes, given) to Wall Streeters "Too big to fail". The AIG swindle for the benefit of counterparties to worthless CDS's and the quadrupling of Goldman Sachs shares, the dumping of "toxic assets" at the Fed are just indicators of the massive looting"
The problem with this idea is that they don't have any money. They lost money, got more from the government, and now it's gone. You can go after them but you can't get blood out of a turnip.
Posted by Dave R on 12.26.09 at 16.34
"This is plain scaremongering. I have been reading these predictions since decades.
Posted by Gulrez on 12.24.09 at 7.02 "
---
No, it was numerous rational and well reasoned warnings over the decades that it took to create this obvious and avoidable result. Now it is finally here! And for ignoring these warnings, still, right up to the moment of the crisis, there will be no sympathy for the catastrophe that befalls the lives of the arrogant and the self-imposed ignorant.
In an era of agenda that supersedes reason it is more important than ever to be reminded that, either you deal with reality, or it shall surely deal with you.
----
Posted by James Woroble Jr on 12.26.09 at 16.49
ok..I've had a couple glasses of wine, but I have to respond to this comment: "Yes, and when countries are in that state, what they usually do is rev up the printing presses..(etc)" Listen to me and listen good...this government is reving up the printing presses, but they are printing BONDS! Not currency...the privately owned FED is doing that in concert with Treasury. THIS is what has to happen...Congress must create the electronic equivalents of United States Bank Notes [rather than Federal Reserve Notes]...spend that money into existance by paying off the outstanding debt which takes the debt out of circulation...no change in the money supply, because the debt [bonds, Tbills and notes] currently exist as negotiable instruments. Retire those.And get the hell rid of this corrupt, parasitic Federal Reserve which has caused all our problems...they LOVE war..they want war, they make money off war because governments borrow to pay for wars. Open your eyes and look for the wizard behind the curtain, the all powerful OZ magnified on the big screen of mass, controlled US media. No wonder I drink.
Posted by hamster cheese on 12.26.09 at 17.23
there is only one problem with the hyperinflation scenario... if the dollar becomes worthless, so does ALL dollar denominated debt. I just don't think the lenders will let us off that easily. I think LENDING market will seize up i.e. interest rates at the long end will go very high and force borrowers to liquidate and lenders will be unable to lend. The Fed will have the choice of making the dollar a HARD currency or destroying the dollar. I think they will choose the former because destruction of the dollar will also mean destruction of the saver, elderly, pensioners, AND the FED itself because its primary responsibility is maintaining the value of the medium of exchange, the dollar.
Posted by tictawk on 12.26.09 at 17.30
...It won't happen, people have been predicting this for a long time.. Get real and take a look at world history: not your few and narrow years and you will find that nothing lasts forever and the real constant is change. The gentleman who runs Shadowstats is not some drunk down on the corner. Believe it or not he HAS thought about these things a bit
Posted by dave on 12.26.09 at 18.06
It would seem that the goal would be to BORROW as much money as possible - not get out of debt - then invest in gold, and repay in inflated dollars years from now.
Posted by tmax on 12.26.09 at 18.10
END THE FED!
BUY SILVER!
Posted by Johnny Dangereaux on 12.26.09 at 18.13
The cost of running Empire is very high. US Empire taxation stretch far beyond the border of this nation. We have revolt against imperial taxation system. People and nations that revolted are identified in US as Not Representing US National Interests and are fair game for being invaded or at least labeled in negative way.
Citizens of USA standard of living is unreal high and cannot be supported even with two current wars and one hundred military bases around the world. US dollar reserve currency more properly US dollar empire is coming to the end. This was visible many years back. I applaud people who protected themselves from Rubins , Paulsons and central banking elite by buying tangible assets especially gold and silver. The minute one makes such investment they vote against big government crooks, wall street gang and central banking elite.
Current paper money Counterfeiting worldwide will end with hyperinflationary disaster.
After that peacefully or not honest money system will be introduced. Every unit of goods consumed will have to be paid with honest money. Such system does not need central banks and present legions of such bankers. Sorry boys you will be unemployed. Will they relinquish this privileged status easily ? Not a chance. Same goes to Big Government. More on that from: Gerald Celente predictions.
Posted by Bob Tate on 12.26.09 at 18.24
As a keen observer of America (We Canadians cant help it!) I hate to say it ....but we told u so! Even though Canada has a far from perfect system of governance and an imperfect government run healthcare system...In the end we are going to be fine and America and its people are going to suffer a nasty wake-up call. Folks this is going to hurt .....Dollar meltdown to the point of zero value ..... hamstrung economy ....unemployment to 50+% and NO middle class. oh and big business will come to the rescue ......lucky U!
In all truth come to Canada ...exchange ur soon to be worthless US greenbacks for muli-coloured Canadian loonies! You'll be happy ya did! It all seems very sureal but the truth is that this crash has to happen everything points to this sad conclusion ....just follow the logical next step in this saga and there simply cannot be roses at the end of all this.
Posted by Simkev on 12.26.09 at 20.07
The mess we are in started to be executed before 1998. The crew that moved gold at Ft Knox was retired enmasse the summer of 1998. Stortly thereafter Rubins {Council on Foreign Relations] and Summers ,CFR, and Greenspan ,CFR declared Gold would be "Leased" [very cheaply, I might add] to hold down the gold price to certain banks such as JPM , CFR, Chase, CFR, Goldman, CFR, Citi, CFR--all was with the blessing of the Clintons-CFR; who then took away Glass-Steagal, the taxpayers protection from the financial rape that ocurred in the 1930's. Then came Bushes-CFR, , Cheney, CFR, who blessed "financial Engineering, and the Derivatives mess and kicked out Brooksley Born and her attempt to regulate them.
Then things really got rolling With Greenspan, CFR, encouraging ARMS and Equity loans. The Bushes, CFR continued to disarm any real regulation...
Now we have George Soros, CFR with his protege, Obama, along with Biden, CFR, and the old gang back, Rubin,CFR, Summers, CFR et al continuing to destroy our economy..
Is it possible to pin the tail on this donkey??
Are all these members of the same group acting alone??and mysteriously having a huge co-incidence??
Does this quack like a duck? Look like a duck?? and smell like duck Poop??
Posted by Liberty on 12.26.09 at 20.33
Yes, these problems have been building (and ignored) for the past twenty plus years. I pray now more than ever. In the mid to early nineties I was lying in bed one Sunday morning and dozing lightly. In that state I heard a voice very loud and clear say, "Gold is going to $1700 an ounce) Don't ask me where it came from or when this is going to happen, but wouldn't one agree it is becoming more believable by the day!
Posted by Bee Ware on 12.26.09 at 21.18
Simkev,
Sure, we've handled our banking better, perhaps, but personal debt is as bad up here as it is there in America! As a fellow Canadian, it is ludicrous to think that if the USA tanks we won't be affected. Sure, our banking system is more liquid and at least solvent, but 80% of our trade is with our southern neighbour! So, expect some serious repercussions up here.
Further, Carney is an American banker who was put in place to be the Bank of Canada's governor during this time of change as the USD dies and a NEW NORTH AMERICAN or perhaps GLOBAL currency is developed....further socializing Canada. Far fetched, perhaps...but when unemployment goes sky high and if martial law is established, solutions will be sought...A new global currency is coming and it is not the Canadian dollar, but some new digital hybrid.
That all said, this slow motion train wreck can be drawn out over the years, and it will take another 1-3 years to feel this quantitative easing in the financial markets...So a good time to stock up on food and gold (and guns if you can...harder for Canadians in that regard, though).
Americans, get some assets up into Canada and out of Uncle Sam's reach, sure, but Canadians, be smart and get some assets outside of Canada. Our bankers and the BOC are just chapters of the banking syndicate that the BIS, IMF, Federal Reserve and US Treasury run.
Geographic diversification only makes sense...
Posted by Canadian on 12.26.09 at 22.35
The US (as-we-know-it) doomsday mechanisms are in place, and yes, linked economies will also tank (i.e., Canada)...the US dollar was engineered to become worthless in order to integrate a regional, if not global currency. The IMF will soon have its way and Keynesian economists will be laughing all the way to the bank...
Posted by global citizen on 12.26.09 at 22.54
Why is there no mention of the counter balancing private debt courtesy of the derivatives markets estimated to be ~ 1Q$ ? That is around 70 x GDP .
Posted by David on 12.26.09 at 23.51
Think about it, when the Fed "prints money" they just click the 1 trillion checkbox in their little Microsoft Windows Federal Reserve software interface! If they had to print the real money, even if they printed it in $10,000 bills, it would take YEARS to print a trillion dollars (100,000,000 $10,000 bills), and the bills would fill a huge warehouse. I don't have decisive proof, but I believe we are at the moment where printing a $1 bill costs more than a dollar. Soon, printing a $5 bill will cost more than $5. The key is that dummies do all their transactions electronically (also the single biggest reason why the elite hate the black market).
If there's a run on anything it will be "physical currency". Just like COMEX is out of physical gold, the Treasury is out of physical paper. Citi's vaults are filled with mostly air. Your "wealth" is just a number you keep in your head, which you check on a website or a monthly statement (I'm assuming you're a little richer than a typical WalMart worker, who has no balance anyway). If the economy were to suffer any (further) major trauma, we would revert to using only paper currency.
Did you ever wonder what the best way to prevent US hyperinflation is? The banksters/Fed could put a hold on electronic transactions! This would immediately decrease the velocity of money dramatically, making the huge supply of "money" irrelevant. Everyone would line up outside the vaults, and the first 10 would get some bills, everybody else would be stealing and scraping from their neighbors. Nobody ever says it, but the banksters control not only the supply of money, but its velocity also!
Welcome to the Matrix.
Posted by AnonBill on 12.27.09 at 0.04
John Williams is just like all of the other "doom & gloom" people. He tries to scare the hell out of people so they will subscribe to his worthless newsletter. 90% of Americans are so gullible. They will believe anything. People like John Williams have been predicting "doom & gloom" for decades. Guess what? It never happens. And it never will. Wake up people, and quit believing everything you read.
Posted by Stanley on 12.27.09 at 0.08
Come to AUSTRALIA !!!
You are ALL welcome, and bring your gold with you.
Posted by Penny Wong on 12.27.09 at 0.15
Come to AUSTRALIA !!!
You are ALL welcome, and bring your gold with you.
Posted by Penny Wong on 12.27.09 at 0.17
Johnny Dangereaux is a big "gloom & doom" believer. He hangs out at the Jim Sinclair website. Hey Johnny, is the sky falling yet? I'm sitting in my bunker with all my gold waiting for the world to end. What a joke!
Posted by Garro on 12.27.09 at 0.18
Ammo and food will be worth more than gold. How much gold does it cost to buy a can of soup? Who knows. Hopefully it never comes to that, I doubt it will.
We will become a third world country. High taxes and nothing from it. Worthless social programs, bridges and roads falling apart. Crazy high crime rate, that will be the new America.
Posted by alan on 12.27.09 at 0.21
Buy 50 cases of Spam. Build a vault in your basement. Stack the Spam like they stack gold bars in Ft. Knox. Lock the vault. There you go. Worth more than gold. Besides, most of the gold bars in the world a gold plated cheaper metal. All the wealth has been stolen. What isn't in the basement of the New York federal Reserve, is in a huge vault in Israel.
Posted by Doug on 12.27.09 at 1.20
I thought the reason why men instituted government was to keep order. Why is it everywhere I've been I've seen and read about how governments have caused great chaos, misery and death. As Alan said, what are we going to be able to buy with the worthless govt. guarantees(US Dollar)? Why are we FORCED to pay for worthless social programs, inferior infrastructure and a high crime rate? Alan you right about an abysmal future for America if we continue to follow the government path. Our futures don't have to be dysmal. All we need is to adhere to the principles of LIBERTY and reject anything coming from government.
Love Liberty,
Rebecca Iocca
www.iocca.us
Posted by Silverliberty on 12.27.09 at 1.26
Buy Ammo? Guns? Gold and Silver. Ah...sounds so reasonable. Have any of you put a gun in some scum bags face who came to take from you rather than earn for himself? I'ts a mighty risky business, but alas - all those gold hoarding, food storing worry warts will find themselves shooting some looter and then having to barter his way out of jail. Sammy's not going to let anarchy rule. He has all the cards. He prints the money, writes the laws, imposes taxes and with all that, he has all the guns'n ammo. Who are you going to really shoot? Your neighbor? Me, I pay in full, have zero debt, just bought my 4th home for cash. No, I'm not a drug dealer or outlaw. I live modest and know that even during the darlest of times, we will pull together and start collecting sea shells to use as a tangable means of trade. In time, faith is all we have. Faith in one another that I will do what I say I will, and I expect no less from you. I have all the guns'n ammo any one could wish for but I'm no Militiaman. I've served my country, gave more than my fair share. Let reason reign in all you invest in. It's just life. You get one. Enjoy it while you can with who you can for as long as you can. Leave this world a better place than you came into it. I trust that we will survive becase we are a nation. When it gets bad, remember those planes crashing into those buildings. We are one together in this collective chaos.
Posted by in Deep on 12.27.09 at 1.42
I've seen comparison's b/w now and the great depression; also b/w now and the collapse of the soviet union. Here's the big difference. At the time of the Great Depression over 80% of US citizens lived/worked on farms....80! What is that now? Less than 10%. Citizens of the former soviet union were also much better prepared for a crash. Most lived simple, hard-working lives. Basics of shelter, food and transportation were provided by the state regardless of income. People did not go hungry, sleep in the cold or become stranded for lack of fuel or machinery. Homes weren't repossessed, vagrancy and crimes of basic necessity were minimal. The US is in a MUCH worse situation. We are soft from years of stolen opulence. Machines have made our bodies and minds weak from atrophy.
When you accept a currency you accept the rules of that currency, including that the rules can be changed without your agreement. Want to work for dollars, spend dollars, participate in the dollar economy? You have given control to Uncle Sam. He gets to take those dollars back any way he pleases. Only Uncle Sam is not really your uncle, just a banker disguised as your uncle. Uncle Sam is caged, drugged and drooling. Lifetimes of labor have been traded for IOU's from confidence men.
It's time to starve the beast. Disinvest yourself financially and intellectually from this system which is slavery revisited and rebranded. Our capitalism offers the illusion of potential freedom in exchange for a constant infusion of obedience and resources. It has learned a lesson from religion. Give the population something to fear; hell, terrorism, financial collapse etc then convince the population you are the only one who can save them. Rebrand everyone and everything you don't agree with as "terrorists" and "evil" and "unpatriotic" and the con game is complete.
Basic human needs have been used as a trojan horse to introduce fascism in a way that makes us feel like we chose it ourselves.
Posted by Dave on 12.27.09 at 2.14
IMO, the coming dollar devaluation is intentional and by design. There is no way that the so called leaders of our nation do not have a clue. They know exactly what they are doing and it is to our detriment. 97% destruction of the value of our dollar during the tenure of the Federal Reserve and our political representatives say that is a good job? They must be living in the twilight zone because a 97% loss in value is a horrible failure. Most politicians applaud that failure. Seems to me as though failure (of our currency) is what they actually want and are working towards, because they certainly are not working to pay off the bills and make the dollar stronger.
Posted by John on 12.27.09 at 2.50
RE: "The economy would devolve into something like a barter system until they came up with a replacement global currency."
Get ready for the Amero.
Posted by eyesopen on 12.27.09 at 4.11
Where should you live? I would not live in S. Korea unless you want a Nuclear suntan that will be coming one day. By at least 5 acres in a rural area and start homesteading here in the USA.
Posted by SMKYMTN PREPPER on 12.27.09 at 5.04
It's true there is a great hesitancy of catastrophe to comply with prophecy, but to aver that catastrophe will never happen is to ignore the lessons of history. Indeed, it should be possible to develop a "natural history" of fiat currency collapse by studying historical cases and that has in fact been done. It is yet an imprecise science to be sure, just as vulcanolgy is, but when you feel the tremors underfoot and your sensors suggest an approaching event it would be wise to retreat to safety.
Posted by McClarinJ on 12.27.09 at 5.41
As to where to live, I am buying property in the Andes.
Posted by McClarinJ on 12.27.09 at 5.44
The Weimar Republic hyperinflation was, of course, a phenomenon of the early 1920s, culminating in the blowoff of November 1923. Do you trust an "expert" who thinks it was in the 1930s?
Posted by Bull Detector on 12.27.09 at 6.35
Alex Jones can flee to Israel and he must be admitted as his kids are Israeli if his wife is indeed Jewish..maybe flee to where Jesse Ventura is on the Mexican pacific coast..that's where i would go if i had the money and if i was going flee.I'm not..this is MY country...OUR country..I'm an American.. not the bankster slave ,
and will fight to get America back to whom it belongs to..
"we the people" !
Posted by newfy777 on 12.27.09 at 7.38
World economical prosperity can come only through production of goods and free trade. Standard of living of any given society depends on how successful they are in this trade with their neighbors. At different history times there was much of cheating in wealth distribution that caused numerous revolts: French revolution end of 17xx, Russian revolution of 1917 and many others.
Standard of living readjustment is in a process right now. So called developed west is on a losing end. It is most visible in USA. People in the know have been aware of this process for some time and successfully looted public purse. Most successful looters are wall street gang and their supporters in government. They are ready to abandon sinking ship at any given time. Only question “What are you, USA citizens going to do with your country?”
Posted by Bob Tate on 12.27.09 at 7.56
The whole thing has nothing to do with money... the bankers who designed and ran this system of monetary policy over the last 300+yrs, yes 300+yrs did it knowing that if you create money to be repaid with interest but don't create the interest then it is a debt that can never be repaid so you get into every country and create a central bank system, then you bankrupt the country, then you get the government of the people of that country to pledge it's labour (to the bankers) then eventually they kill money and it's value globally (the dollar) and come up with a global currency controlled by them to save the day but all they did was take control of the countries of the world because when you control a countries money, you control the country, sad thing is our governments will sign up to this.
Here are some general questions that expose the problem.
Is it true that the banks have been bailed out because our money system is based on the biggest ponzai scheme in history and that to fund the existing debts new and bigger loans have to be created to keep the scheme going so if the banks didn't get those bailouts our money system would have collapsed ?
Also
Governments have the sovereign right to create money without interest so why have they passed the right to create money to private banks who then charge interest thus creating a debt that can never be repaid because they only create the principle, not the interest.?
Also
Governments and Banks state that inflation is controlled by varying interest rates but isn't the current monetary system inherently inflationary because you have to create more money (loans) to pay the existing loans so varying interest rates only increases or decreases profits because inflation will always be there ?
Read web of debt www.webofdebt.com and watch the money masters http://bit.ly/1ahmMl and money as debt http://bit.ly/20ahZK
Posted by Karl:J on 12.27.09 at 7.56
Excerpt from:
http://www.321gold.com/editorials/harris/harris122709.html
As we exit the year, we are told the US is a laissez-faire free market economy and yet the US government is now the largest owner of housing in the US as well as the owner of last resort for some of the largest and completely insolvent US corporations. The Federal Reserve, a privately and anonymously owned and controlled corporation chartered with issuing the nations currency, were given the green light by themselves to transfer to themselves and their shareholders the people's wealth in the form of their future labor. The FED balance sheet has ballooned to become a junk bond warehouse as they overtly and covertly buy their own debt, immune from any sort of oversight, regulation or auditing and operating above the law. Along with that, increasingly coercive brute force measures are now routinely necessary to manage and manipulate so called "free market" asset prices which are cheerled by so called "financial news media" whose board members and management are all the same people who transferred the people's wealth to themselves. The corporate media party line idea of a "free market US economy" now seems like a distant memory and it all feels like systemic fraud, corruption, malfeasance and organized crime at the very highest levels.
Posted by Bob tate on 12.27.09 at 8.49
NOW we know Who brought many to the brink
“The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” said Sylvain R. Raynes, an expert in structured finance at R & R Consulting in New York. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson.”
Goldman Sachs: The Grinch who stole Christmas?
Goldman Sachs Sold Hot Air
Goldman Scam: Selling Bad Debts While Betting Against Them
Goldman Sachs' secret bets
Goldman Sachs secretly bet on housing crash
http://tinyurl.com/yas8gud
Q&A WITH KEVIN DUFFY AND BILL LAGGNER: Two hedge-fund managers predict the economy's next leg down. Shorting Goldman Sachs.
viewtopic.php?f=17&t=391&p=8913#p8913
Posted by integrity vanished on 12.27.09 at 9.16
We have and continuing to grow garden areas with heirloom seeds (not the crap you buy at walmart), and my children 13 and 18 have been taught to hunt and fish. The commercial farmers today will be bankrupt leaving millions without food and no knowledge how to grow it.
Posted by Terry C on 12.27.09 at 9.17
Waynel: Hear, hear!
Don't forget canned, dehydrated, and freeze-dried food. Also, a skill or skills that will prove useful to a new economy. Something in the repair or manufacturing area, items that people can use. Like leatherworking, gunsmithing, mechanic.
Posted by Sam on 12.27.09 at 9.36
http://www.aipnews.com/
Posted by Let's Get'em Out Now !!! on 12.27.09 at 9.46
If only there was a great and powerful historical leader who would have warned us about the evil banker class bound on destroying all that do not belong to their club.
If only. Alas, no one in history has ever said anything.
Posted by Joe Schmoe on 12.27.09 at 9.51
Economic History Major? They don't offer it in any college. That's all this is: history repeating. Unless there is a miracle, Williams will be right. 95% of people are delusional. Grow a garden, get 2 years of basic food staples and some for your friends. These things can't hurt you. If you have some money put in Gold or Silver. When those assets go up you can pay off your house. Nothing radical here. Get ready to help others and start studying to convince yourself.
Posted by f.starkey on 12.27.09 at 10.16
I hope Joe Schmoe is being sarcastic because many of our forefathers did warn us and tried to make the changes to create debt free money. if they had been successful we would not be in this mess. We can still change to debt free money but the will of the people is required to make that change because it wont come from the elite. Think of the government as being in the middle, we have the numbers but don't know whats going on so insist on change, the elites in control know whats going on but don't have the numbers just all the money. When we the people know what has and is happening then things will change, if we keep impatiently waiting for the next episode of dancing with the stars or the next UFC fight or football game then we are lost... !!!!
Posted by Karl:J on 12.27.09 at 10.18
Gummint teat-sucking quislings should be rounded up, tarred, & feathered. >:-(
Posted by Bob on 12.27.09 at 11.50
To whoever noticed the mistake: yes, the Weimar hyperinflation was in the 1920s, not the 1930s. Either John misspoke or I misheard during the interview. Thank you for pointing it out.
Posted by Phil Maymin on 12.27.09 at 11.55
i laugh when i read someone blaming the "unfunded liabilities" or "entitlement programs" meaning social security and medicare for the deficit. Social security may technically be a ponzi scheme but it worked until Clinton raided the fund to balance his budget and left a 'file cabined full of i o u s as Bush called it. Usually guys like John Williams don't call the wars of choice and profit (private profit) "unfunded liabilities"
and as I see it that is where much of the problem lies, along with the fed, Wall Street, AIPAC and other lobbies running Congress.
Nuke the Fed, Starve the Pentagon, abolish all lobbies and leave the social programs alone.
Posted by Blackfeather on 12.27.09 at 12.04
Mr. Williams thinks the situation will be fixed in decades;how about not even then?
The reason :by 2050 according to Census US will be a minority majority country> The high school graduation rates mean this new majority cannot deliver the income to be taxed that America needs. Only way to do that is to improve the high school and college graduation rates of the majorities.
Posted by May Warren on 12.27.09 at 12.08
If we drove out all the people who are ruining the country, we wouldn't have to move anywhere. There are lots of lousy countries they could go to.
Posted by AAD on 12.27.09 at 12.45
There will be no Wiemar and there will be no crisis and all you survivalist are nitwits. guns ammo canned food? Get real. This isn't Wiemar and it isn't Argentina.
Posted by you are all insane on 12.27.09 at 13.41
This Little-Known Rule Could Send Gold to $10,000
By Porter Stansberry
Dec 2 2009 9:10AM
www.dailywealth.com
It's one of those numbers that's so unbelievable you have to actually think about it for a while...
Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion.
Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30% of our entire GDP. And we're the world's biggest economy. Where will the money come from?
How did we end up with so much short-term debt? Like most entities that have far too much debt – whether subprime borrowers, GM, Fannie, or GE – the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss."
What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt... at ever shorter durations... at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.
When governments go bankrupt, it's called a "default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists – Alan Greenspan and Pablo Guidotti – published the secret formula in a 1999 academic paper. The formula is called the Greenspan-Guidotti rule.
The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money-management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."
The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.
So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default.
The U.S. holds gold, oil, and foreign currency in reserve. It has 8,133.5 metric tonnes of gold (it is the world's largest holder). At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that's around $500 billion of reserves. Our short-term foreign debts are far bigger.
According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months – an amount far larger than our reserves.
Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.
So... where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40% of GDP.
Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or Russian central banks, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.
So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.
One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea, and Chile. These are the three largest central banks that own the least amount of gold. None owns even 1% of its total reserves in gold.
I examined these issues in much greater detail in the most recent issue of my newsletter, Porter Stansberry's Investment Advisory. Coincidentally, the New York Times repeated my warnings – nearly word for word – a few weeks ago. They didn't mention Greenspan-Guidotti, however... It's a real secret of international speculators.
My readers know that Greenspan-Guidotti means the U.S. is likely to have a severe currency crisis within the next two years. How high will gold go during this crisis? Nobody can say for sure. We've never been in the situation we are now. The numbers have never been so large and dangerous. But I wouldn't be surprised at all to see gold at $10,000 an ounce by 2012. Make sure you own some.
Good investing,
Porter Stansberry
Posted by Dave on 12.27.09 at 14.34
"We just saw an extreme example in Zimbabwe. ... Probably the most extreme hyperinflation that anyone has ever seen. At the same time, you still had a functioning, albeit troubled, Zimbabwe economy. How could that be? They had a workable backup system of a black market in U.S. dollars."
I highly respect your work, but don't flatter yourself Mr. Williams.
The Zimbabwean Black Market wasn't solely using US dollars, British Pounds or South African Rand.
"Gold is money and nothing else" - J.P. Morgan testifying under oath to Congress before the Pujo Commission, 1913
This is a video illustrates 'in action', the above quote, which the Zimbabwean Black Market took as payment:
http://www.youtube.com/watch?v=7ubJp6rmUYM
Posted by anon on 12.27.09 at 16.05
Re: Broken's wailing
To force a woman to have an baby that she does not want is to make a slave of her.
A lot of men are against abortion, but they don't have to carry the baby to term, have the baby, and then carry the responsibility of that human for the next 20 years or so. Men can impregnate a woman, then walk away forever, not taking any responsiblity at all.
The billions of humans already on the planet are destroying our earth. We don't need more of them.
Posted by Proabortion on 12.27.09 at 16.41
It is getting very late in the game. If you have currency buy gold. If You have only a little currency buy silver. If you have no currency seek out and hold base metals like copper, lead and alluminum
Posted by easy jay on 12.27.09 at 17.00
Re: Broken's wailing
To force a woman to have an baby that she does not want is to make a slave of her.
A lot of men are against abortion, but they don't have to carry the baby to term, have the baby, and then carry the responsibility of that human for the next 20 years or so. Men can impregnate a woman, then walk away forever, not taking any responsiblity at all.
Some might say that a woman should not have gotten pregnant if she does not want a child, but human nature being what it is, there will always be unwanted pregnancies.
The billions of humans already on the planet are destroying our earth. We don't need more of them. Posted by Proabortion on 12.27.09 at 16.41
Posted by Proabortion on 12.27.09 at 17.17
i say its time for us all to gear up with our weapons. we need vigilante groups and militia's ready to fight for what right and to preserve our way of life. the military has rules, believe me...im in it. but there is only so much we can due by law. if we work outside that scope, we have 2 punishments we must deal with and everybody knows everything about us. its time for a few good men. minute men need to come back and we need to be state side. thats my piece
Posted by Vigilante on 12.27.09 at 17.38
ah yes minute men,keep youre powder dry.
Posted by gunner on 12.27.09 at 18.38
Hyper-inflation will cause inner-city riots which will spill into the suburbs. At that point, the race-riots start. After that, the victory-race will hang all the people responsible for the mess, then we all live in utopia.
Posted by Jack D on 12.27.09 at 18.44
We are a confused and warped society at war with ourselves. Our government has stolen the weath of its citizens and handed it to the fat cats of big business and the best we can muster up is a revolt against socialized medicine and raging internet hate pieces against religious and ethnic minorities. Wake up. The people have been spat upon and slapped in the face and the government and big business have no fear of retribution. The enemy is in plain site and we talk of getting guns and cans. Guess what? The government knows where you and your guns are. What are you gonna do when you get that 4 am Blackwater wakeup call? The war is on and the result of a basketball game will cause more commotion than than the looting and enslaving of the American people. We must take a stand as one people united now or live with the consequences of cowardace and apathy.
Posted by John on 12.27.09 at 19.29
Wow, incredible article. I just purchased a few more bars of bullion from Scottsdale Silver after reading that....no joke!
Posted by James Reading on 12.27.09 at 19.43
THERE WILL BE NO HYPER INFLATION------ARE ECONOMY WILL GROW SLOWLY AS TO THIS PAST UTTER MADNESS.
AS MORE PEOPLE GO TO WORK--THE MORE FEDERAL INCOME THERE WILL BE.. THERE IS PENDING FEDERAL TAX INCREASES COMMING---ALSO FEDERAL SPENDING IS BEING CUT..
AS ONE POSTER SAID THIS HAS HAPPENED BEFORE, AS IT WILL HAPPEN AGAIN. BUT IT WILL NOT BE AS BAD.. BLAME LOW INTREST RATES THAT CAUSED THE BUBBLE.
THEN BLAME BANKERS--AND THERE EASY MONEY MAKING WAYS..BLAME WALL STREET---
OBAMA NEEDS TO WACK WALL STREET AND INSURANCE COMPANYS HARD----
THERE NEEDS TO BE ADDTIONAL TAX INCREASES..
NOTHING COMES FOR FREE, AMERICAN PEOPLE ARE UTTERLY SPOILED...
THANK YOU FOR YOUR TIME.
I AM GOING IN THE BACK YARD TO HANG MYSELF, WHAT AM I SAYING, I HAVE NO BACK YARD.. I HAVE LOST EVERYTHING..
SEE-YA
I WILL BE IN THE ISLANDS.
Posted by MICHAEL T. FOX on 12.27.09 at 20.25
What we will see is a form of Social Darwinism in action as people holding large amounts of precious metals will become VERY wealthy relative to their peers. This will be fitting as intelligence should always be rewarded and people who trust thieving scoundrels and trust debt-based Ponzi scheme fiat money should be punished. I know that sounds mean, and I truly feel sorry for people who are going to be hurt badly, but WHY hasn't anyone given any THOUGHT to "what money REALLY is" and why has everyone stood by and done nothing while our criminal govt has gone insane?
Where is the outrage?!!? Well, it WILL come and when it does that will be a GOOD thing as problems will be addressed and solved. I concur with the other poster who said the people at the Fed etc should be put in prison "AT BEST" lol
People need to wake up and identify the EVIL in our govt and the puppetmasters who OWN it. Learn more about the REAL special interest groups. They have names like CFR, Bilderbergers, PNAC, etc. Most of them are dual citizens with allegiance to that tribe from that crappy strip of land near the Eastern Mediterranean.
Posted by SILVERISGOLD on 12.27.09 at 20.51
You're all welcome in Australia where the AUD$ isn't being printed at will and life is good.
Posted by Rocky on 12.27.09 at 22.13
I just LOVE all the comments! It gives me so much hope. The problems are old(97 years), huge, and multifaceted. The parasitic function has expanded beyond the hosts ability to support both. Something is dieing and something will be born. Lets pull together to ensure the new is something we can be proud of.
Posted by sam on 12.27.09 at 22.21
The solution is not an individual or small group one. The legal constitutional solution is for a STATE to make a stand against the feds on behalf of the people of the STATE. The STATE governments are the recognized authorities in the constitution to oppose a criminal federal government. A State should start converting money to real silver and gold coinage that the people can use for currency and trading. The STATE should recall all their national guard troops and refuse to allow the feds to use them for illegal wars and purposes . The STATE should stop the killing of all innocent children in their mother' womb by abortion and start trials for abortionists for mass murder. The STATE should not allow appeals beyond state courts since federal courts have become guilty of the same mass murder by upholding legalized child killing in the name of liberty. If it is not an organized State movement to oppose the feds then no one will change anything. State governments are the recognized authority to stop federal tyranny and protect the people of the state from it. Is there any State that still loves Freedom and righteousness? If not then we fully deserve whatever the feds want to do to us. We deserve no better than the millions of children that have been slaughtered at our hands. It is time for wailing..... and gnashing of teeth.
Posted by broken on 12.27.09 at 23.11
Ron Paul told the truth and would have made the best President by far. But the stupid sheeple of the United States preferred a black, lying incompetent and that is exactly what they got. Enjoy this stinking Muslim communist.
As for gold, it is the only thing that will protect you as the U.S. dollar implodes. If you are too stupid or too uninformed to believe that, you deserve all the misery that will most surely be yours. If you want to make a fortune and are intelligent enough to do so, buy gold stocks now while they are still so very cheap. In the near future they will sell for hundreds of dollars a share.
Posted by Slommy Dingostein on 12.28.09 at 0.18
Hi from Germany,
what I do not get: the US-Dollar is supposed to "hyperinflate" against what? The Yen, the Euro, Gold?
In Weimar Germany, Argentina and Zimbabwe the problem were the debts denominated in foreign currencies. The US has no such debts.
I used to believe in such theories until Sept. 2008 taught me the power of deflation and the true meaning of "world reserve currency".
I`m not saying the US-Dollar is great, but I can`t see how the Euro and the Yen, let alone the British Pound (there you have the main constituents of the Dollar-Index) is any better.
A Ron Paul Fan
Posted by Fabio on 12.28.09 at 3.55
The politician is the real terrorist.
Posted by private on 12.28.09 at 5.15
watch this video...ignore the name of the video, ignore who the speaker is...listen to what he says..
http://www.youtube.com/watch?v=tbFPWIldtfA
Posted by David on 12.28.09 at 7.42
He's right. Reagan's hyper-defense spending, George W.'s out of control madness and the Johnson and Obama team have destroyed 200 plus years of progress.
Posted by Howard Huffman Jr. on 12.28.09 at 7.43
> We still have a great country. We're going through a period of economic pain. It's happened before.
A bit of a contradiction here. Should this have said: “Is this a great country or what?”. The country is broken because the Constitution didn’t address the FACT that the smartest amoral scumbags can purchase politicians and steal loot from the peasants. Oh well, one of dude who wrote the Constitution said that when it no longer works for the people, it’s time to change it. I wonder if REAL Mericans are smart enough to do so.
Posted by NOTaREALmerican on 12.28.09 at 8.24
Old army saying CYA, FUBAR which pretty well covers the US governments operations.
Posted by e rheault on 12.28.09 at 8.48
Fiat currency, yet another violation of our rights. Add it to the list of gov’t violations of our right:
They violate the 1st Amendment by fencing-in demonstrators at G-20, banning books like “America Deceived” and trying to take-over the internet.
They violate the 2nd Amendment by confiscating guns.
They violate the 4th and 5th Amendment by wireless wiretapping.
They violate the entire Constitution by starting undeclared wars.
Impeach Obama (and sweep out the Congress, except Ron Paul).
[Link of Banned Book]:
http://www.iuniverse.com/Bookstore/BookDetail.aspx?BookId=SKU-000083883#
Posted by Mike Q on 12.28.09 at 9.00
Blame yourself for allowing the KHAZAR JEWS (private federal reserve)to print your dollar,they have destroy Germany,USA is next.Wake up .
Posted by Nicolae on 12.28.09 at 9.07
I have read all comments here and I thank all views expressed. I really think the focus should be on self relience and community. If we have hyperinflation all hard assets will go up in value not just gold and silver. Things like garden tools,real estate,and all things that would be required to be self sufficient. For a person of modest means the most important thing to acquire are the things it takes to survive an economic collapse. Educate yourself in gardening,food preservation and repair skills that will be needed in any society. Gold and silver are good ONLY after all the above have been addressed because you can not eat those metals and if you are hungry, how much gold are you willing to let loose of to not starve? So I feel that the necessities of life ie shelter,water,food,etc are far more important than gold for the average man.
Posted by pilot on 12.28.09 at 9.44
Just relax and come over to the dark side..hyperinflation is NOT a bad thing..it is hitting the reset button on reality. If we do not have a hyperinflation, our nation and each of us will be enslaved as well as our children and grandchildren to try to pay the massive debts and entitlements (which by the way we are NOT entitled to). The economy will be unable to compete and the corrupt thiefs who run the current debased system continue to reap the harvest of all of our blood sweat and tears. If we have a hyperinflation all of us can repay our debts for a few recycled aluminum cans..our debt slavery ends then. It is only then that we can get back to the concept of being free people. Sure it will be tough..likely some people will starve and die in the streets..(Darwin explains that the least fit are least likely to reproduce anyway)..stop being wimps and trying to prop up a system of lies corruption and evil that is far worse than the darkness of a collapse. Lets get on with the hyperinflation, lets embrace the collapse and lets enjoy the freedom from debt slavery for once in our lives. Remember, a government who cannot pay their soldiers also cannot force you to do anything.
As for this BS that the pensioners ect are entitled to their social security benefits or other government gifts, I do not see it. Lets liquidate that program fairly. Pay each participant exactly the amount of money they really paid into the trust fund. When people see what a small check they get back, perhaps then they will see that social security was only a way to buy off voters.. I personally feel no obligation to pay for somebody elses comfortable retirement. I will never see a dime from social security yet I am expected to pay into this ponzi scheme? My children are born into debt to pay for somebody else to live it up? I don't think its right. Why is it that we are not expected to save and plan for our own retirements? What about medicare and medicaid? By proping up the medical industry and giving it a massive subsidy, the government makes the cost of healthcare go up. I say eliminate this vice too. Otherwise it is not fair. If we want cheap healthcare..draft all the healthcare workers into the army tomorrow...tell them the only difference they will have in their lives is that only Uncle Sam pays their salary and that they are expected to see everybody who walks in their door..nationalize and confiscate all of the medical facilities and the pharmacy manufacturing companies. take the profit out of it and medicine stops being a "big business" if there is no profit in it then the paracites who profit by your suffering are out of the loop and then medicine will be about helping people. I bet it would not cost any more to do this than to keep what we have now..Look at the skyline of any big city..the skyscrapers are all insurance companies and parmacutical giants..take em down or regulate these vultures like you would a utility company..they are a vital service and should not have the power to dictate the terms of your existance. If we want socialized medicine make it a full government service..Otherwise we are just enriching the pigs at the feeding trough with our tax dollars while the people get nothing out of their own money that the government is spending. Sure its socialism..so what... at least it would be fair socialism where everybody gets a benefit..our current system is also socialistic..we the average stiffs pay for the benefits for the elderly, the poor the illegal and the veterans now..that IS socialized medicine, however, because I am not in a special group..I am denied service if I walk into the hospital, even though I am paying for medical care through my taxes, I am not entitled to get any benefit from it. Therefore I am being ripped off..Tear down the system and let the hyperinflation purify the system and the sooner the better.
Posted by mickey on 12.28.09 at 9.55
Be calm, but work on preparing to supply a skill or product that will have trade value in the depression. DO something, such as starting seeds now to go in the ground after the frost. Reduce your expenses ruthlessly--no cable TV, cell 'phones, fast food, Blockbuster Videos, movies. That will fund basic sensible food supplies, not the expensive, low-calorie/nutrition "survival" meals. Sugar, flour, beans, rice, protein powder. Learn to dehydrate (VERY simple) and make your own eggs and jerky. Today a friend bubbled excitedly, "We got two small wood stoves for $150 each!" Excellent plan if you have access to wood and can cut it safely. I bought the stoves two years ago for $70 and probably got much better quality. I found a mint condition wood cookstove for 5% of what a modern one costs.The later you came to the game the less well you will do, but this isn't a contest. THINK, use Craig's List, etc., thrift shop, just get started instead of wasting time worrying and insulting each other. If at all possible put together a group with at least enough land to garden and have a few dairy goats, and LEARN to garden starting right now. Reference books are vital, but so is hands on experience. Why are you still here? Go buy some chickens if you have a place to keep them. If you have to grow lettuce and radishes in flower boxes on the kitchen counter, go clean yours off. Do something PRACTICAL and positive. At the very best there WILL be a long, deep depression and right now is when you have to prepare. If "it" comes all your fancy plans and lists won't count, only what you have actually done. Money isn't the big problem; getting up and getting started is. Scat. Go get a $30 dehydrator and a bag of carrots, some bananas, or a bag of frozen mixed vegetables. Slice the food, put in the dehydrator, turn it on, and in time you will have something you have preserved against a time of need. Even a small start is better than posting on blogs. LBT
Posted by Linda Brady Traynham on 12.28.09 at 9.56
Don't place all of your faith in barter for future survival.
Our government is so deep in debt that it needs to squeeze every last dime it can out of each producer. If the time ever comes when barter is a necessity, it will most likely be made illegal.
Tax avoidance, refusal to pay your fair share, will likely mean prison time and forfiture of property. Taxes are too serious of a matter for the government to play around with old rules and regulations.
How will the government find out about your secret bartering?
From the other barterer that collects the big reward for turning you in.
Yes, I know, I'[m crazy.
10-20 years form now, ,just remember where you heard it first.
Posted by SilverHog on 12.28.09 at 10.24
This has been in the works for some time, The end plan would be to bring in a new currency just as the euro was forced upon the europians. Theres absolutly no way Americans would voluntarily trade in the dollar for another piece of paper with a new name and new photo. But if you were to devalue the dollar beyond any repair, create debt impossible of repaying, then wait for Americans to beg for help and a way out you bring a FIX called the Amero...
Posted by nate on 12.28.09 at 11.49
One thing he did not touch on is... When Russia and
China sees we are broke.. they might try rolling tanks
into California and Texas.. lots of them.. We all need
guns and ammo on hand for each family member....
Washington D.C. should give us support on this,,
but they act like only cops should have weapons....
If this ever happens , our military will need our help...
Just like the " Red Dawn " movie...
Posted by Patriot 440 on 12.28.09 at 12.24
doller devaluated is a chance, not a fact. You do realize, US and other countries will not let that happen. Too many foreign investors, and too much is in invested in US doller.
If the doller is devaluated, the whole world will suffer.
Since China is the greatest exporter, in order for them not to have an inflation because of all the money they making, they invest into US Treasury-Bonds. Now doller devaluates, Yen hits an inflation, now they have to charge more for exports, the imported countries have to pay more. that is a small example of scenario that might happen if doller devaluates.
Sure we(US) is going to hit a high Inflation, sure the population will suffer. But Devaluation, and Anarchy?? Cmon you seen too many movies with Kurt Russell "Escape from NY" and"Escape from LA"
Look a country like Russia, they didnt have anarchy when there currency dafaulted. Sure it was a crazy time or place to live, a lot of poor people, a lot of crime. but still no ANARCHY!!! and they managed to live through it.
Posted by dre, nyc on 12.28.09 at 14.42
Saudi Arabia has just signed a contact with Japan to store OIL for them as Saudi Arabia does not sufficient storage place, what does this say ????????????
Posted by Peter on 12.28.09 at 16.34
Ron Paul's Campaign For Liberty has grown exponentially and now numbers 225K, Membership is free and doubled and redoubled over five times this last year.
To be a good member one may simply make others you meet aware of the existence of the www.campaignforliberty.com site and the pro freedom movement.
Most politicians take an oath to preserve the Constitution but ignore its limits. They think they can enact any law if they get the votes regardless of the fact that Article 1 Section 8 enumerated the only powers granted to the Congress.
The Campaign For Liberty intends to enlighten our fellow Americans and replace the politicians with those who will keep the oath to uphold the Constitution. Note that only gold and silver coin are legal tender (see Article 1 Section 10)
Join us and help us double and redouble our membership.
www.campaignforliberty.com
Posted by Wm on 12.28.09 at 17.24
You want to know a possible outcome?
http://theamericanapocalypse.blogspot.com/
Posted by nova on 12.28.09 at 17.34
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