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David Stockman: "We Are Entering The Terminal Phase Of The Global Financial System"
by Eric King via Contra Corner blog,
Today David Stockman, the man President Ronald Reagan called upon along with Dr. Paul Craig Roberts to help save the United States from disaster in 1981, warned King World News that we are now entering the “terminal phase” of the global financial system that will end in total collapse.
Eric King: “David, I wanted to get your thoughts on gold in the midst of this big deflation you think is in front of us. When you look at the collapse of 2008 – 2009, gold was one of the best performing asset classes. Gold went down but it went down much less relative to virtually everything else. Contrast that to 1973 – 1974, where we had a 47 percent stock market collapse. But during that time we had skyrocketing gold and silver. What’s in front of us because it looks like gold and silver may be ending a 4 year bear market and ready for a 1973 – 1974-style up-move?”
David Stockman:
“Yes. I think the two periods are quite different. Although at the bottom it’s central bank errors that underlie each. But remember that in the 1970s we had just finally exited a semi-stable Bretton Woods Gold Exchange Standard system. There still was, at the end of the day, an anchor on the central banks that was thrown overboard by Nixon in 1971….
"So the first go-round was a rip-roaring price inflation because there had not yet been enough time under the fiat money and balance sheet expansion by the central banks to create excess capacity in the world industrial system. So as the boom in demand took off, commodity prices soared. That fed into domestic costs and labor wages in particular.
There weren’t a million cheap workers coming out of the rice paddies in China yet because it was still in the Dark Ages of Mao and not part of the world economy. And so you had a classic inflation blowoff and flight to gold in the 1970s as a result of that initial money printing cycle.
Now, I think 40 years later central banks are erring to much greater extent but the cycle is different. We have now created massive excess industrial shipping, mining and manufacturing capacity in the world. Therefore we don’t have a short-run consumer price blowoff. We still have massive cheap labor in the world and so therefore we don’t have a wage price spiral.
We Will See Total Collapse
The result is that all of the massive stimulus from the central banks has gone into the financial inflation, not goods and services. The financial inflation is obviously the great bubble that afflicts the entire financial system of the world. It’s becoming increasingly unstable and it will eventually collapse. And when it does I think it will mark the complete failure of a monetary system that has basically been metastasizing since 1971.
World Will Panic Into Gold And The Price Will Go Parabolic
Well, when a monetary system finally fails, there will be a flight to the only money that’s left in the system and that will be gold. That will be the hour in which the next great surge in the gold price occurs. You can’t predict the exact moment, but you can certainly have a pretty confident view of the direction (parabolic).
The central banks are clearly destroying the monetary system that emerged after Nixon went to Camp David in August, 1971. So here we are 45 years later and we are nearing the end of an unstable fiat central bank driven system and the alternative is fairly obvious — at some point going back to real money. I don’t think governments will do that voluntarily, but certainly people trying to protect their wealth will. When that happens it will trigger a huge political crisis and hopefully an opportunity to change the regime and get back to some kind of viable and sound financial and monetary system.”
Eric King: “David, it was fascinating listening to you talk about the difference between the 1970s vs today. During the horrific 1973 – 1974 bear market (in stocks) we saw gold skyrocketing. And we have seen gold trade very strongly through a number of crises from 2000 – 2011, at one point rising a stunning 700 percent.”
We Are Entering The “Terminal Phase” Of The Global Financial System
David Stockman: “Yes. Well, I think those cycles that you mentioned are relevant benchmarks, but they were warmups. What happened in each of those episodes was a short-run break in the system, collapse of confidence and flight to gold. What I think we are facing now is a terminal phase of a monetary system that isn’t viable, stable or sustainable. Therefore gold has but one characteristic — massive upside in the years ahead.”
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He forgets the government has the ability to confiscate gold ala FDR.
Pretty big "forget".
Confiscation of any asset is possible. The most likely right now is retirement accounts. Its much harder to take gold from peoples house rather than an electronic account.
For anyone acquiring gold or silver, here is a free download that I use that helps me buy dips. It’s essentially just a more aggressive form of dollar cost averaging.
The Global Economic and Financial Control Matrix Disintegrating in Real Time
Man, I was all lubed up ready for some yank worthy doom porn, and get a gold commercial.
Like finding a skin flick on TV but realizing it as only the ones that show some dude's face while in the vinegar strokes.
pods
Just like Gold to $5000 call.
The most likely right now is retirement accounts.
I had a dog, his name was Bingo.
Hey, if you love America, you will move your money into MyRA.
pods
"Only criminals use cash."
Coming to news network near you.
Confiscating gold takes real work, just like mining it.
Bankers hate that "work" shit.
On the other hand, electronically transferring your IRA balance to .gov?
That sounds a lot more "bankster style".
The linked article explains US demographics were the clear trigger for '08-'09 GFC...and why things are about to get much worse economically.
http://econimica.blogspot.com/2015/05/the-truth-of-great-financial-crisisand.html
US 25-54yr/old annual population growth went negative in...you guessed it... '08
US 25-64yr/old annual population growth will go negative in '16 or '17 and maintain negative numbers til maybe '23 or '24...all the while 65+ annual population growth is responsible for nearly all net US population gains.
Why the Fed would choose to treat a population bust like it was a temporary and "emergency" liquidity crisis by conintinully colluding and advocating the printing of massive debt for a 15yr population slump is not idiotic...it is criminal
I read this item over at King World News where, for some reason, it seemed much more shocking.
Is it going down?
https://youtu.be/90HUOD5b8EI
Why confiscate gold when you can tax accounts holding more than XXX in value? Call the tax whatever you like. Holding fee, National Financial System Support Fee. The fact that FATCA exists already says that forcing individuals/institutions to "pay to hold" wouldn't be a possiblity (consequences be damned.)
Alternatively, it could go down that if you sell gold in your possession/holdings by xx/xx/xx, you'll only be levied a XX% tax rate. If you sell at any point after that, you'll be levied a XX% (higher) tax rate.
Read this piece by Jim Rickards. It touches on these:
http://dailyreckoning.com/a-glimpse-into-the-year-2024/
So true!
On saturday, some boyscouts where comming door to door to sell candy for their jamboree.
Now, it did look like a secret terrorist opperation so I said to myself I should do my civil duty.
So when I opened the door and they where doing that "want to buy candy for our jambajamba bullshit" I played along!
And at the end of their speech, I took a 20 euro bill to see how they reacted!
AND THEY TOOK THE MONEY AND THEY EVEN HAD MONEY TO GIVE ME BACK THYE MONEÝ OWNED ME!!!!
MY GOD!!!
So I did what every patriot would do and I just beat the crap out of those kids, pulled out my taser I always carry with me
AND GUESS WHAT!!!!
ONE OF THOSE BASTARDS WAS BLEEDING ON MY FLOOR!!! ON MY FLOOR!!! MY FLOOR!!
So that meanth I had to step it up started working on their faces! I saw on of thrying to crawl away so I called my dog to finish him off.
I just felt great to do my civil duty. To bad my freezer is now full with those kids and the dog doesn’t like the meat...
I clearly didn’t really think that on through...
BUT I SHOULD GET A MEDAL!!!
AND I DID IT ALL WITH THE RISK OF MY LIFE BECAUSE OLDER TERRORISTS CLAIMING TO BE THEIR "PARENTS" ARE STILL GOING DOOR TO DOOR TO LOOK FOR THEIR SCOUTS!!!
Isn’t A SCOUT a person they send first before a attack!?!!! THEY ARE PREPARING FOR WAR!!
You better all prepare I say...
but...
KUDO’S FOR ME!!!
YOU ARE ALLSAFE FOR ANOTHER DAY!!!
Ahhhh! Belgians.
"Only criminals use cash."
Coming to news network near you.
So does that mean they're gonna have to cancel "Climbing for Dollars"?
https://www.youtube.com/watch?v=IqZ5hJ7NqRc
15th August 1971 to 15th August 2015...
44 years....
Given what is going on with 9's and 11's and Lagarding 7's shit doth not look good.
My feeling (strong) is that something will go down on Aug 15 this year, perhaps to explode onto the scene in September, then the whole Shemitah thing, Pope in America...all of it coalesces...
this is 1929, 2019 is 1933 and fits the pattern...
Rough days ahead for most folk.
Megatrends at play...
https://aadivaahan.wordpress.com/2010/06/18/of-tipping-points-and-shape-...
fuck you with your astronumberfucks
you fucking quack.
I've always wondered what kind of parents bring up people like you...
Tell me winchester, I'm really curious.
What environment created the bitter fucknut that you obviously are?
Here, take a hard one on your nuts, you'll feel better...
Just out of curiosity, Ori, are you a fan of Martin Armstrong?
His Economic Confidence Model is pretty interesting and frustratingly for most concerned, his metal price move predictions have proven pretty close so far.
I'd say I like him because i have a well seasoned BS detector.
The kind of parent that power washes their toof.
He has no water in his bod, therefore the moon doesn't effect his tide.
Do you play lectric gittar?
That is a semi-acoustic I'm playing WG. Pure Electrics do not sit comfortably with me.
Do you play music as well?
Used to play the fiddle back when granite was being formed. Don't even think I could play twinkle twinkle little star now. ;)
The reason I asked is I met a guy that has created some hootus that you hook to an amp. Haven't heard it, but I will. He works at a computer circuit board repair joint & works on the side. I had a TV blow up (power) & I decided to tear into it for a look see. I'm sickened at the toxic electronic junk sent to 3rd world countries due to engineered obsoescense. The circuit board had a blown $2 capacitor that didn't blow the fuse so I think I can fix it once he gets the part & solders it back to the board. He plays guitar professionally & asked if I might want to do a bit of work with his gizmo.
You can’t predict the exact moment, but you can certainly have a pretty confident view of the direction (parabolic).
I know it, you know it, the whole damn financial world knows it.. Yet nobody has the answer to when. So just BTFD, keep churning it, take profits to stack PM. Been doing it for a few years now. Worst case scenario is I lose on the value of gold and will sell it to jewelers.
Sell it to Chinese or Jewish jewelers?
The Jewish jewelers won't be around.
"We are now entering the “terminal phase” of the global financial system that will end in total collapse."
The global financial system clings perilously to death.
Like Generalissimo Francisco Franco.
Still dead.
terminal as in where the amtrack train was going? hmmm, most didn't get to the "terminal".
Yup, the RUT will hit 5k long before gold ever does.
"told King World News" was the first clue
Jesus! ZH now posts KWN stories? Desperate times, desperate measures!
ah yes, shooting the messanger and ignoring the message. It's a David Stockman interview, not Eric King interviewing himself. Stockman knows a few things about financial markets, manipulation & central planning stupidity. I'll listen to his opinion any day of the week.
stockman is one of the top ten truthtellers left in the world! kudos to him and PCR. and bowtie dude...(not rogers).
Maybe Jim Grant. He should be the Chair of the FED. That would cause some heartburn in the system. Stockman at the Treasury, Bill Black at the Justice Depertment, etc. There are really good people that can fix this mess. We need to get rid of these politicians. All of them.
That's it, we just need the right angels in control of this lumbering, satanic behemoth.
Bowtie Dude = Marc Faber?
Gold can't go to high in dollars because we can't afford to pay in dollars, we are highly in debt and that would only make matters with monetary inflation that much worse.
Gold could go parabolic in dollars, but then so what, dollars at that time will be worthless.
Gold will have a basis of value in a "civilized" society, if we witness a breakdown on the global monetary system I doubt we will have civility and other "assets" might be of more immediate and relevant value.
Gold will be great after we stop trying to kill each other to determine who the new #1 will be. Water, Food, Fuel, Ammo and Guns will have immediate value after Gold goes parabolic in dollar terms.
In the long term, no. But it won't happen overnight and as paper money degrades, monetary metal value will rise sharply and there will be taking what they think is profit. Unfortunately once the value reaches a vertical line on the inflation curve for paper, we'll be busy with food riots etc.....
Eur/USD:
1/30/10 = 1.38
1/30/11 = 1.357
1/30/12 = 1.314
1/30/13 = 1.356
7/30/14 = 1.338
Then 6 months later on 1/30/15 =1.128
Gold may not have changed much as a buyer here (in the USofA FemaRegion6) but if you live in Euroland it costs 20% more than it did 6 months ago.
Your Fiatsco strength is letting you buy bullion at 2010 prices today...Enjoy!
Report: imminent Greek bankruptcy to ignite the earths atmosphere and burn everyone and everything. Only thing left to do is............BUY GOLD!
Imminent? You mean like in the next twenty years? Greece has been bankrupt for 20 years already and still the shit has not hit the fan yet. The banksters keep shuffling the deck chairs to some other bankster group that will have an easier time socializing the losses.
Still waiting for Sterling to collapse, Jim Rogers said so back in 2010.
I invested in gold, it has cost me a fortune, bloody wedding ring!
We have been thinking about it... about how people say there is so little gold and silver owned by the public that it would supposedly not be confiscated? Yes, there is that aspect. But then there is the NSA and their data collection to take into consideration. They know everywhere you have used your card and your current address. How hard would it be for them to ban gold after a cash ban and make a national move on you? How hard to go after everyone they figure owns more than say, a few hundred ounces? Something to think about....
How hard would it be to put a bullet in the head of the person who goes after my gold?
Easy.
As you start to exhale....squeeze the trigger.
1) If you ever paid for AG or AU with a card -- you're screwed. After they ban cash, they'll come after you and people like you next.
2) You better believe they will come after the AG and AU, and I bet they'll findfall profits tax it. Picture this scenario -- Euro-rainbow land finally goes tits up taking down the world economy with it. Everyone is reduced to zero, except for their debts, which magically stick around. Everyone is bankrupt except those evil Libertarians who stocked up on gold and silver. It wouldn't take but 2 hot seconds before you get some "concerned mom" from "middle America" ranting on CNN about how is she going to feed her children? Blah blah blah they lost everything and now there are these people buying things with gold and silver, and it isn't fair that these people are taking advantage of "good, honest, hard-working Americans" in a time of distress. The government should go after these people, blah blah blah.
And if they government doesn't go after you with the full force of the law, you better believe you'll be demonized in the media to such an extent that transacting will be difficult. Never know which one of your "peer citizens" will call the IRS/NSA on your ass for trying to buy & sell in AG and AU.
Have an international exit plan.
It's not just if you payed with a card. They can use your web history, your cell phone data and all the other data to reconstruct your daily life and habits down to the closest ten feet and the closest millisecond for the past decade and maybe more. They know where you get coffee in the morning, what national forest or desert you have visited, what all your hobbies are. What would have taken a few G-Men to discover in 1933 will only take a few mouse clicks today. From their perspective the metals may have only moved out of Tulving, APMEX, etc.... and now it needs to be moved again (back into their vaults).
Abandon hope?
Roll over and squeal like a pig?
No.
Man up, pansies.
Gold, bitchez.
Lead, MF'ers.
"It's not just if you payed with a card. They can use your web history, your cell phone data and all the other data to reconstruct your daily life and habits down to the closest ten feet and the closest millisecond for the past decade and maybe more. They know where you get coffee in the morning, what national forest or desert you have visited, what all your hobbies are."
You maybe. I'm not a fan of all that technology shit. A low technological profile is the way to go; and for goodness sakes, trade or use cash, quit feeding those assholes.
Can't reconstruct my daily habits if I don't give you enough input.
Wado
We hear that a lot from people. It doesn't matter if you claim to be a technology buff or not. The fact is that all people living in this matrix are leaving little digital breadcrumbs all over the place, all the time. Not saying anonymity or near-anonymity doesn't exist anymore but it requires more time and effort than most anyone out there is willing to put into it. Did you access this website from your home network? Tied to your name through your ISP? How many closed circuit cameras have you appeared in this week? Do you have a cell phone? Do you or a spouse or family member use social media? And this isn't even counting the passive surveillence technology being rolled out.
Umm.
Except the drug trade has all those attributes with 100 years of prohibition and hundreds of billions invested to stop it on the Fed, State and local levels, and yet it still flourishes.
How to explain that without leaving the confines of logic and spiraling off into a fantasy-land of conjecture?
Your 'all powerful State' scenario is highly unconvincing.
You assume there will be CNN/media/a functioning government, after a crash of this magnitude. This assumption is most likely wrong.
That's probably right but we might not be talking about one single crash. Maybe many crashes where things become more surreal and more draconian as this thing goes, where there is still a functioning CNN/media/government for the first few legs down...
Actually, the army has a mandate to step in and take over in such a event untill order is restored.
At minimum, martial law would be put in place for the first 6 months and be evaluated right after.
But the fact that police is being turned into militairy is a sign that it might take a lot longer as there will be no real police force to turn back to.
Of course! The dreaded windfall profits tax! /s
There's a simple solution for that: It's called the "black market."
The only gold owners who would willingly agree to pay a windfall profit tax are the same morons who would willingly turn over their shiny to the gov't if gold was outlawed.
Global collapse, slick.
The Sunshine Patriots in fucking Paraguay or whatever will get theirs too.
I don't give a loose shit what Simon Black told you.
And that lady won't be bitching on CNN at that point.
She will be taking 9 inches of Leroy if she didn't invest in lead.
I keep repeating this in the hopes that many of you will stop this whole "they're going to come and confiscate my stuff" bullshit.
DAY 1 that it is seen that there are Govt. guys coming and taking your stuff....the home arsenals come out to play. If it was to the point that it gets to "guys at your door" are coming for your stuff...they will be shredded in about a weeks time by each place they go to...they will be slaughtered. There will NEVER be enough FED and Govt. manppower to make this kind of possibility occur.
Look at all the riots of the past....cops are gone till the Natl. Guard shows up. If it does go bad, the least of your worries will be Federales breaking down your door for your stack of 20 Eagles....it'll be all the neighbors wondering why you are fed and operating while they are starving.
That's why you eat your neighbors first.
Right off the bat. Go full cannibal. Set the mood and get out in front of it.
The other neighbors won't wonder so much anymore.
+1 for originality, even if the ethics are a bit... cloudy.
I guess you could just start a rumor or play with your chainsaw at odd hours if it's a huge problem. Or just ask them how much rum do they think would fit in their skull if it were scraped out and bleached. That might set the social tone without the real need for the Dr. Lector Menu.
I'm just thinking if your neighbors are rat finks...why not extend your bean supply and start with them? They ain't gonna make it, anyway. Waste not want not and what not.
Believe it or not, but I am generally a law obiding citizen. But I'm fully prepared to go completely dark if what you say would come to pass, Haus. In WWII, the black market flourished under such circumstances. I will always try not to harm another innocent soul with my behaviour, but I will fully commit to the "système D" to pull my kids through this ordeal.
windfall profits tax, nah
take out a secured loan
If they're paying attention, they also know we lost the gold in a boating accident.
The nature of economics is such that young people, whether graduates or not, need to buy or rent a house (in order to live) and eat food (in order to live) and have a job (in order to live and reduce unrest). With all this, comes buying of homes, appliances, cars, furniture, kids (hence demand for schooling etc), demand for healthcare and entertainment etc.
The problem in today's world is that we have too many young men and women and too little jobs!
No amount of debt printing can bring jobs to these people. Their future is in peril.
If the objective of money printing was to create jobs and hence new demand for goods and services, we would be just fine. However, the main objective of money printing has been to bail out billionaire buddies.
It is sad but the economic world is going to collapse if these policies continue and cause massive uprisings as people have nothing to lose (e.g. Syria...Iraq...Afghanistan..now South Africa....Libya...Baltimore, Ferguson...)
There is still time to immediately and urgently reverse the course of money printing and let capitalism work (it is the last opportunity) because within the next 3-5 years, if this continues, in the future, people will blame the people alive today as being responsible for the biggest collapse in world history. This will happen in the next 3-5 years at anytime.
There is still time to stop all the wars and bring the peace doves out.
There is still time to let go of all the billionaires who are surviving just because of easy money printing.
There is still time to arrest top executives who perpetrated financial crimes over the last 2 decades.
If all these actions are taken today, we still have a chance to live peacefully for another few decades.
If not, well....I do not have words to suggest what is coming our way.
WE NEED JOBS AND WE NEED THEM NOW.
Politicians of the world must unite and take this bitter pill NOW, rather than hope for the best.
I hope some politicans and central bankers who have a little bit of common sense are listening!
There is no easy way out.
We are currently passing the point of NO RETURN. By 2016 or 2017, we will be way past the point of no return. Armies and militaries will be unable to contain the unrest. Whatever businesses are alive today, will also go under hence it is in everyone's interest to reverse militarization and bring back capitalism NOW (not faux capitalism of QE) in order to create jobs as well as global peace.
We saw in Thailand a military coup unable to return to peace. We saw military in Johannesburg last month. We have also seen military in Romania and other parts marching towards Ukraine. We also saw military practicing in California. Military is all over the Middle East, Venezuela, various parts of Africa (contanining Ebola and fighting Boko Haram) etc.
In the history of time, military has never been the answer to unrest. Military causes a bad situation to get worse over time. Just look at Iraq or Afghanistan after more than 13 years! And Syria and Libya after 4 years. Or Israel - Palestine or India-Pakistan after several decades.
Peaceful coexistence is the only way out of this quagmire that we have created. Egos must be toned down and peace should be given a chance. And let every country do whatever they want internally with no external political or military intervention.
Let us give diplomacy a chance instead of wars!
I salute those who keep trying to bring peace on earth whether NGO's or UN or activists or pacifists or diplomats or civil servants etc.
May the best of them win.
Government is the problem. It is the revenge of the genes and the Grim Reaper of civilization.
Your genes win when you try to diet and they win when you try to be civilized.
Yes, Govt has been the problem, especially the ones in G-7 who have used their power and war as an answer to every single problem globally.
Of course, this has not worked for them or in their favour despite all the power, money and muscle in the world. War is not a solution, war is the ultimate weapon of the weak!
Unfortunately for the G-7 nations, other nations are winning.
For all the problems in the world, China, India, Russia, Africa and Latin America are today more insulated from the autocratic G-7 nations. The trade in G-7 is declining while it is rising in other nations over the last decade. So is employment and so is their global corporations and so are tax payers and their outreach with each other. In fact, sanctions of EU and US have taught every nation how to navigate them and made them more resilient.
If this hegemony pattern continues, 10 years from now, everyone will be on one side and G-7 on the other side with no one to do business with by these self destructive G-7 nations (thanks to sanctions, wars, animosity, regime change, drone attacks...blah blah blah....)
So, who is more lonely G-7 or rest of the world?
Wink wink...Hint...It is only the G-7 who are lonely.........who are doing QE and money printing...thus making an already acute problem even more worse.
"War is not a solution, war is the ultimate weapon of the weak!"
Very subtle interpretation of the actions of rulers. They are a small percentage of the population and the use of ingroup-outgroup morality and agitation for war to strengthen their rule belies the fact that they have become even weaker.
@Dubaibanker - always appreciate your thoughts, very lucid and insightful.
I disagree that this can be still salvaged at this point. There are two paths (one in which you delineate above): 1) continue the present course - paper over the crime scene, inducing more distortions and looting along the way. The end result is collapse. 2) Stop - prosecute the fraud and people (all of them!!!) responsible. Ripples from the collapse of distortions already present will collapse the system. For example, "draining" the current excess reserves in a stable way, while leaving the current system in place, is impossible. No one will walk away unscathed. No one.
Either way, a collapse of the current system is inevitable. There will be a great reset. Wealth preservation is the order of the day. Unfortunately, due to the delusional, narcissistic and math-challenged behavior and ways of the West (Dunning-Kruger effect), nearly all the people will suffer. The looters (parasitic western bankers) and those prepped will come away in good shape (not perfect - no one will be left alone).
Thanks Variance Doc. Point well taken. Appreciate your comments as well.
My point is that today when the banks are still standing and jobs are still there and global growth has not yet started actually declining on paper unlike US employment which is the prettiest pig with lipstick and a fake economy. Quality has deteriorated while quantity MAY have improved, thanks to desperate people taking ANY job to survive. Walmart workers on dole is a good example.
At this point, we must try our options from G-7 point of view and STOP the wars and further worseining of global order.
If some banks are allowed to be closed or some companies that have been bailed out are let go, it will cleanse the system.
Keeping zombies alive is no good.
Capitalism and truth must prevail.
Death follows birth and recycling is a must. If all old people continue their jobs until death, how will young people get a job?
I agree we will have a reset, but I still believe that there is a chance, a very slim chance that things can be controlled and improved a bit.
If no action is taken to create employment firstly, there is a big disaster waiting to happen that has started unfolding as seen by the oil price collapse in the last 6 months and the consequent impact on other sectors of the global economy.
After banking job losses since 2008, now oil losses since late 2014, the global economy cannot take more pressure at this fragile time.
Both banking and oil are very large sectors and create lot of revenues and more so critical jobs. This will have cascading effect on consumer goods and service sectors and increase bad losses of banks when they are barely lending.
Real world works on real jobs and real manufacturing of good and services that must be paid for. Not through fake money and expecting no negative consequences. Money printing has never been tried in history except by US who prescribed every other narion until now for last 70 years through IMF to let companies collapse but when it came time to take their own bitter medicine, the Americans turned out to be chickens!
Bulk of the popoulation outside of G-7 already lives hand to mouth, so they wont care when the US economy stumbles. US is insulated from others due to large corporations and large oil production etc, however, they are not insulated from its own failure which has been slowly unfolding over the last decade. The biggest enemy of US is US itself.
To think that all other countries have not learnt any lessons from 9/11 retaliation towards Iraq, Libya, Afghanistan etc or become more resileient and learnt any lessons from sanctions against Iran and Russia is idiotic. All nations are ready and prepared from impact of sanctions and thus the impact of war and sanctions will be limited in the future.
Saudi has announced today they will buy nuclear weapons which is a big change in Middle East. This is but one example of the resilience and preparedness of all countries which works against the US. First Iran used to stand up to US, then was Russia and now is Saudi.
US is increasingly more isolated than ever in its history since its formation.
I believe US collapse will impact very less number of people and companies outside of US and will be impacting only within and can cause massive chaos and take back US by decades if not centuries. US will be stuck in a quagmire of its own creation where there wil lbe no friends left to support them in their hour of need.
Thsi is the price US must pay for bringing so many countries around the world back by many decades, by itself and no one else will sympathise or assist when the US hegemony collapses with a big thud due to their own design.
The system will collpase only within US which is built on debt. Others do not have as much debt. Though EU is also similar however, they are more resilient and still have the friendship of more nations than US can claim. EU banks are smaller hence problems are smaller. Cyprus, Portugal and Iceland etc have declared bankrupcties unlike the US and hence purged a lot of their past mistakes.
So let us see how US and EU withstand any major headwinds which other countries are much better prepared for today than they were 7 years ago.
Thanks for the perspective outside the US. I was maily talking about the US. I still think the ripples of the western banking collapse will still reach all corners of the globe, though as you point out, will not have the same effect. Never-the-less, the global eCONomy will be affected.
I don't think the EU banks are as well capitalized as the US banks.
Yep, got my popcorn and lawn chair out. Let's start the show!
US is screwed no matter what.
Creating debt is their weapon of choice thus far. This debt alone wil bring them down.
If US Govt uses some common sense, there is a very slim chance. when they completely stop interfering in other people's affairs, allow billionaire bankers and buddies like Buffett etc go bankrupt, that they have a chance. Toning down a lot of their ego on a global scale is very important.
2015 seems to be the last chance when oil and coal companies are going under in US and more cities like Chicago are ripe to default.
If US does not STOP spending on wars and bail outs IMMEDIATELY and creating no further debt, they might survive. If not, the public will not let the Govt go unpunished as we have seen in Detroit, Ferguson and Baltimore......
There will be change in the US, only the political elite and billionaires will be caught napping.
Listen all you dumb fucks. The government will not take your gold. They will offer to purchase it from you at the prevailing price. If they decide to do that the price will have substatially increased, so their is no risk to you at these current prices. Now you may miss out on future price increases, but that will be your decision to sell to them or tell them your version of the boating accident.
Please stop the BS they are going to confiscate it parroting, it really makes you sound like a dumb fuck.
They will simply make it illegal to possess gold, and require all safety deposit boxes to be opened the presence of Feral Agents. By executive (depotic) order, no less...
http://en.wikipedia.org/wiki/Executive_Order_6102
safety deposit boxes??
If you use one of those, you already lost.
safty deposit
coffee cans....
@ Nanny,
Who's this "they?" When the proverbial SHTF "They" will be no where to be found. And, if found will be hung.
While I agree there isn’t as much risk as many fear, I don’t think they would give you a fair price. Just like in 1933 when they gave you a price of 20 bucks per ounce but then revalued to 35 dollars an ounce. It was worth 35 dollars an ounce then they used coercion to buy it, and managed to steal over 40% of Americans monetary wealth held in gold.
Remember the hallmark of any monetary shift over the past 100+ years is that the government and banks get stronger.
And the dipshits up and sold it to them, too.
Somehow....I don't see many falling for that again.
The Nazis did not pay for the gold they took from France, Poland, Czech, Belgum.....when the military shows up on your door step to confiscate you will be lucky to be alive when they leave.
The only question is whos military will show up at your door...
Don't be home when they come.
"The government will not take your gold"
Really?
They can already take your cash - for no reason whatsoever. Just ask that small businessman in North Carolina. It only cost him 20 grand to get his 100 grand back from the Feds. He was never even charged with a crime.
"The most likely right now is retirement accounts." Yes, this is why so many (majority) have been moved to IRA's/401K's - it isn't a pension with a defined payout, but can be stolen or debased at will. And...they've pushed it to the point that they are stealing pensions as well. Nothing but broken promises in the U.S.S.A.!
Where did Wall Street get all the buyers 1971 to the present? Why, the sheeple of course! Who lost in the 2001 and 2008 crashes? The sheeple of course!
Gold and Silver can at least be held on your person and are not attached to the etherwebs.
Pensions have always been a vehicle for the present to defer costs to the future.
Pension dollars belong to the company until you retire.
401K in theory is actually your own money, and the growth on it is also yours.
Confiscation of 401K and savings accounts ( aka "bail in" ) has been shown to be the method of last resort for bank solvency. ( see Cyprus and Romainia )
Possibly farmable land and owning means of production will be the safe assets. Land, tools, equipment, usefull trade skills. Collapsing governments have confiscated those as well.
Yeah.
Fuck moving it.
I drained mine, took the hit and got out of debt.
These fucks can suck my balls. The only reason they are trying to ban cash is to spare the embarrassment of issuing "dollars" 100 mil denominations.
That's what they'll have to do though. Folks won't go along with it.
' Its much harder to take gold from peoples house rather than an electronic account.'
How did they get the gold out of the houses last time?
They didn't get gold out of houses of last time.
Well there you go.
pullin teeth.
Not to imply that I agree it makes much sense to bother with a general confiscation of private gold, but actually, it's not all that hard at all.
The trick is to make the proles do the work for you.
In the legislation you pass to ban ____ possession, you just announce a turn-in or repurchase program - turn in all your ____ before the deadline and your statutory liability is waived for say 5 years, maybe we'll even give you a few dollars for your cooperation.
As long as the punishment for non-compliance is non-trivial, you've now shaken out all the weak hands and turned all former-owners against all the holdouts and provided bulletproof justification for further confiscation measures.
Keep in mind that the goal is never to get all of ____ and anything short of that is failure, quite the opposite. If you can get say 50% plus kill the legal trade plus introduce huge "counterparty" risk into ownership, all with no real work whatsoever, you're winning.
It's happened with ballistic and bladed weapons, drugs, raw commodities, real estate, and precious metals uncountably many times already.
Just don't take your metal detector too far into an Irish bog anytime soon, boyo. They demilitarized...dontcha know.
Laws like that...aren't going to be obeyed and the fact that they had to try it shows a very weak hand. Plus, that's really last straw territory. Everyone knows that when they come for guns and gold you use one to protect the other...on your way out if that's how it shakes down.
Yeah, he seems too cheerful to me too.
Stock Market Crash in 2015 is Coming, Despite Widespread Bullishness
Read it via your link. Nothing that I haven't already read on ZH.
No mention of bitcoin ,,
Bitcoin sucks, there, fixed
Bitcoin is the greatest.
SEMPER SATOSHI!
Welcome back fonester...
Peak madness.
If the legacy system fails we'll see 50,000 USD (purchasing power parity) bitcoin easily.
name one way can be seperated from your bitcoin....
there are many
.
All depends upon how bad it gets. My guess is that when supply lines dwindle down to almost nothing, even the enormous quantities of fiat pushed out to the state apparatus (military and police) won't be sufficient to keep order. Gold and silver will be useful, but mostly later, after the big shakeout. If you survive that, then PMs may help.
That's the way i see it as well- IF it gets bad out there, gold, silver, rolexes, whatever won't be very usefull initially. Later, yeah probably. Food/shelter/defense oriented equipment and usefull skills would be more valuable for a while.
How did Confiscating all the Pot work out for them?
THey also have confiscated ALL the illegal Guns too right?
How did Frodo get past Sauron?
Forget it. When it comes to doom-time, everyone has too much mental energy invested in the all powerful State fear that they can't think logically.
I look at it like a giant that doesn't have enough bloodflow to the brain to operate efficiently precisely because it is so large a body mass. It can cause damage by flailing about, but that's about it.
The State really is only constrained by one thing, but it's a big thing.
It has to maintain the illusion of legal legitimacy and if they lose that with the great mass of people who ordinarily don't pay much attention to the States egregious overreach, then people will simply not comply and resist orders.
That's why the Bundy Ranch showdown ended the way it did. They couldn't afford to be seen mowing down a bunch of 40-60 year old ranchers and patriots.
They could...but they knew what would happen next. It would leave the Nevada desert and come to Washington and their homes.
Frodo got by Sauron because Aragorn and company were marching on the black gate. Sauron changed his focus to Aragorn from the hobbit because he could not imagine someone would attempt to destory the ring and that Aragorn must have rightfully claimed the ring because why the hell else would someone march on the black gate?
A common theme in LOTR is that evil undoes itself. Good people have to resist and take action of course, but you can leave it to tptb to make a fatal mistake.
You also forgot that gold was circulating currency at that time. The government did not go house to house taking wedding rings, they called back gold coinage.
In modern times, gold confiscation will be as easy as nationalizing an ETF. They will not come to get your tube of maples.
Money was gold. Most money was held in banks.
The Federales just seized the gold sitting in the bank's vaults.
"He forgets the government has the ability to confiscate gold ala FDR."
Almost no one in the public owns gold, and it's not in circulation as coin, unlike the FDR era.
Not likely. As mentioned previously, IRAs a more likely target.
We've been in the terminal phase for some years. I think it's a slow motion crash, of a type never seen before.
And that is why you keep it offshore in some form or another.
People like to complain about globalism but the smart people have adapted and learned to use it to their advantage, especially in this era of the internet.
There are reasons why Jim Rogers and Marc Faber moved to Asia. Now of course it is not very practical for the majority of Americans to do this as the jobs move East, but is it any different than when we brought in tens of thousands of Chinese to build our railroads in the 19th century, or tens of thousands from all over the world to build the Panama canal?
And of course there is the Grapes of Wrath scenario, where Americans move from one state to another as jobs and industries shift.
In times of change, the learners will inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists.
Dovie'andi se tovya sagain (It's time to toss the dice)
Got Karatbars?
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Boring, Boring, Yawn, Yawn... it's the end of the financial system as we know it... yawn, just as it was in 2008 and 2001 and 1998 and 1987 and ___________ add crash here........ yawn yawn yawn..... and every day the market ticks higher......
All these clowns are trying to do is make a name for themselves and even if the crash doesn't come until 2017 and even if it's only a 10% pull in, they can say look I told you so.... even though you probably lost your pants trying to go short in Q1 or Q2 2015....
it is hard to confiscate something that is so easy to hide as gold
BUT
government can tax gold transactions
What about the land, Danny?
I like David's stuff usually, and I like gold, but this just reads like a gold commercial for dummies. Give me something I don't know.
Its hard to paint farts green ?
I already knew that....... don't ask me how.
That turpentine puts a burn on those tender parts?
I lost all mine in a tragic boating accident, SO.................
Here is my guess for next steps:
(a) When Greece defaults but stays in the EU, the banking system needs an immediate recapitalization and the only entity that can do that is the ECB.
(b) ECB recaps but provides minimal (starvation level capitalization) for the maximum collateral capture. The ECB claims every conceivable government asset: highways, power plants, airport, military base land (warding off Russia), you name it.
(c) The starvation level bank recapitalization fails when Greece defaults within the euro, Greek banks collapse, chaos ensues, government cannot provide essentially services.
(d) Fortunately, the ECB comes to the rescue. The ECB is such a kind and benevolent leader. The ECB parachutes in a creates a protectorate to provide essential services, aid, keeps the hospitals open, etc. Calls the new state “General Gouvernment” or something similar.This is particularly effective since the ECB owns all of the essential government assets.
(e) Trains run on time. Greece becomes a great place for German retirees to live. Young Greeks leave or consign themselves to be waiters/kitchen staff/hotel staff for German pensioners.
(f) Schoolchildren in General Gouvernment for the next 60 years are taught about the kind heartedness and benevolence of the ECB and Germany. In German, of course.
We do have got no problems with Greece, as long as "Satans Banker" can produce more digital Euros, everything stays fine.
That's all.
Save the banks and the bondholders and everything is fine.
The new immigrants grand kids will pay back the losses and all will be well.
Until the next Piigs blows up. Repeat.
"It's Only Make Believe". Elvis knows.
(d) Fortunately, the ECB comes to the rescue. The ECB is such a kind and benevolent leader. The ECB parachutes in a creates a protectorate to provide essential services, aid, keeps the hospitals open, etc. Calls the new state “General Gouvernment” or something similar.This is particularly effective since the ECB owns all of the essential government assets.
Close insert NATO for ECB. NATO is the Central's Banks army. That is how you end run sovereignty using military and security issues to install your own puppets then. It is either that or they have to throw Greece out of NATO because of internal national stability issues. Same reason they won't admit a country like Ukraine into NATO. That is the 'real' endgame once the precedent is set. NATO either has to violate it's own charter agreements or step in directly to stabilize the country to keep it in NATO because of the way the treaties are set up. If NATO throws Greece out then Greece becomes fair game for Russia then.
Inverse logic of an attack on one is an attack on all is how they rationalize it. They can now roll in the tanks and troops into Spain next or Ireland if they default and force the US and in turn the FED to foot the NATO bill.
Socialism at it's best.
I really don't think that the NATO charter includes collecting debts and installing puppet regimes.
We have State (CIA) and NGO's for that sort of thing.
It isn't about debt collection it is about keeping a member nation state from failing outright. If the US failed as nation state, NATO could put foreign troops on US soil because of that entangling alliance thing to prevent an attack on the US. The US civil war would have been the first World War with the Union and all of NATO vs. South had NATO existed back then. Understand the real significance of why the US endorsed NATO in the first place.
Once the Greek government defaults you have the potential for a breakaway territory type situation. Think Moldova and Transnistria. Nations with disputed territories within their borders are not allowed into NATO either. This is the reason Moldova and Georgia (South Ossetia) as 2 examples are not allowed to become member states. Now expand that to Greece next if it defaults and imposes even worse austerity than has been so far on the Greek people.
Quite possible senario. And then rinse & repeat until 'they' have every country on the planet. Start small (Cyprus, Greece) and go from there. In the end you have it all. And what have you got? Who knows. But Jesus was offered it and he turned it down. Seems there's someone else who still wants it so he can create hell on earth. Tribulation.
No amount of preparation will suffice. Things will go in a direction unforseen. It will be terrible indeed. Good luck.
"Take my usual focus, economic policy. If you look at the list of economists who appear to have significant influence on Republican leaders, including the likely presidential candidates, you find that nearly all of them agreed, back during the 'Bush boom,' that there was no housing bubble and the American economic future was bright; that nearly all of them predicted that the Federal Reserve’s efforts to fight the economic crisis that developed when that nonexistent bubble popped would lead to severe inflation; and that nearly all of them predicted that Obamacare, which went fully into effect in 2014, would be a huge job-killer.
Given how badly these predictions turned out — we had the biggest housing bust in history, inflation paranoia has been wrong for six years and counting, and 2014 delivered the best job growth since 1999 — you might think that there would be some room in the G.O.P. for economists who didn’t get everything wrong. But there isn’t. Having been completely wrong about the economy, like having been completely wrong about Iraq, seems to be a required credential.
What’s going on here? My best explanation is that we’re witnessing the effects of extreme tribalism. On the modern right, everything is a political litmus test. Anyone who tried to think through the pros and cons of the Iraq war was, by definition, an enemy of President George W. Bush and probably hated America; anyone who questioned whether the Federal Reserve was really debasing the currency was surely an enemy of capitalism and freedom.
It doesn’t matter that the skeptics have been proved right. Simply raising questions about the orthodoxies of the moment leads to excommunication, from which there is no coming back. So the only “experts” left standing are those who made all the approved mistakes. It’s kind of a fraternity of failure: men and women united by a shared history of getting everything wrong, and refusing to admit it. Will they get the chance to add more chapters to their reign of error?"
http://www.nakedcapitalism.com/2015/05/bill-black-krugman-is-half-right.html
Republican leaders
Where?
I can see the swell job the left has been doing for the economy and foreign policy.
Yeah, I know.
Racist.
TERMINAL, BITCHEZ
Even gold and silver have their mad "money printing" moments.
The discoveries of huge gold and silver reserves in South America by the Spanish was the precious metal backed equivalent of today's QE.
"Money printing" in the trillions caused by a random find of precious metals.
The digital currencies have it, with an open sourced program that all can verify, that limits currency creation.
Gold and silver discoveries are just random events and not the sort of thing you should pin currencies to.
Just imagine a massive find in the Antartic (Amazon, sea-bed, Siberia, etc ......) and the precious metals aren't so precious anymore.
Just like they imagined the moon was made of cheese and had to go there to find out.
Why would anyone go looking for something that would be worthless if they found it.. dig it and they will buy it..
Keep repeating this same post, it might work one day.
So what?
Inflation will radiate outward from the excess supply of gold to it's farthest reaches until prices will reflect the new supply and normalize or accomodate it.
Granted, prices are a lagging indicator but they are mobile and always relay information about money supply and velocity in the system.
Prices are the best money supply regulator simply because they tell you who will part with what for how much at any given time.
No, I'm not gonna do my Ahab the camel trader example.
Batman? You're too funny!
Mining Companies are pursuing deposits with a fraction of the grams/ton ore as in the 1970's... Ventana, a Canadian company mining in Colombia, was hitting Bonanza grade, (several hundred grams/ton) core samples and had begun developing a mine when it was bought out by a Brazilian billionaire, leaving investors only a 35% gain...
"Just imagine a massive find...? Sorry, I just can't "imagine" that!
"Amazon"? Yeah, you might want to put some money into Jaguar Mining, ha, ha. Or how about buying a claim in this Brazilian mine, photographed by Sebastiao Salgado, cropped to fit the album cover ...
/www.youtube.com/watch?v=me1xm8dduL4
"sea-bed"? Put your money into Oceanagold.
Perhaps a Bond Style Villain finds a Solid Gold Asteroid... whatever?
You speak of the Spanish Conquest of the "New World" as the "equivalent of today's QE"? Nonsense! I don't buy your premise that "discoveries are just random events".
It all just sounds very foolish, sorry.
Paper money ain't worth a dime.
You can have gold coin in circulation, but it isn't the way it is anymore. Most of the double eagles were in the banks when gold was confiscated, the quarter eagles, half eagles and eagles were in circulation and less than 22 percent were actually forked over to the government. If you had a five dollar gold coin during the Great Depression, you weren't about to hand it over to Uncle Sam, it would have been a fool's maneuver. My Grandfather had one five dollar gold coin and he wasn't about to hand it over to a President who wasn't even a Republican. Franklin Roosevelt could go to hell as far as my Grandfather was concerned.
Silver coin in circulation is a really good idea. Why should the US mint mint coins that are copper/steel/nickel when they have to mint twenty times more coins and the price of a coca cola is no longer five or ten cents, but a dollar fifty-nine, twenty to thirty times more than it once was?
The US Treasury must like those great big numbers or something. Dumbest monetary system on the planet when at one time, it was the finest money could buy. Now it's all a big pile of steaming bullshit.
Anyhow, a good read is F. Tupper Saussy's Miracle on Main Street.
People not having a stake in physical precious metals by now is kind of like a Greek depositor leaving his cash in the bank. The writing is on the wall. If you haven't figured it out by now, you are practically begging to become impoverished.
I think we have to accept that in the future you get ahead by abusing a corrupt Socialist system, much like today, but worse. Don't hate the player. Hate the game. Or, just run for office and begin setting up your empire. The guys with the guns hate the free economy.
.... more of the same crap - these preDICKtions remind me of financial priapism. Where is the climax? Where is the financial release and satisfaction? It is still being predicted, that's where. Stockman should be respected because of his experience but he cannot have any knowledge beyond his own experience.
Isn't this the same Stockman that paid several million $hekels to avoid prosecution for financial crimes? Just thought I'd shake out that dirty shirt a bit. Glad he's finally found another niche in dirt populism.
The Federal Reserve keeps QEing. Stuck doing QEs indefinitely or until a currency crisis.
When food distribution hubs break down Stockman will have to use his bullion for cans of beans where he can find it. Of course, we all know he will be mugged for his bullion and will not get the security he suspects he will get with it. As soon as the criminal gangs find out he has gold they will be at his front door kicking it down. They will find Stockman hiding in his safe room counting his physical gold bullion and wishing he had a 'BLC & T' to go.
I am curious. When you decide you have had enough of the post USD/Euro/Yen/Yuan stagnation, and or Mad Max era in the USA, are you going to load your 7 tons of beans and bullets on a truck and drive to another country with it? Or are you just going to fly out with something small and valuable that works the same as cash?
I have already decided that I have had enough of American Hegemony, but I live in CANADA, and am seventh generation Canadian, so there will be no bullets, or beans, to load into my 19 year old car when I BUG out. Moreover, if you knew what I know about the upcoming crash you would not hang around any cities when she finally blows both head gaskets, 8 pistons, 8 rods, and the crankshaft, cam, and timing chain, eh. Jade Helm 15 is the Gubberment answer to overt chaos. My answer is to just split, man. Like Honestann, I'm getting the fuck out of here and heading to a lake in CANADA's north for some yummy fish n' Moose burgers my Aboriginal Metis buddy makes.
Gonna take a lot of wood chopping to keep your ass warm up there.. don't forget to stabilize your chain saw gas, that will get you one year into the crisis.
I have the best chainsaw money can possibly buy and I always run it completely dry of fuel before I put it back in storage. Moreover, I use hightest/high-octane gas and never use a stabilizer, ever!!! And I'm quite used to cutting trees down and making firewood. I can cut enough wood for two years of heating in less than three days of work. The only thing that worries me are the bugs, cougars, moose, bear, lynx, bobcats, wolves, and porcupines.