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Economic Alert: If You’re Not Worried Yet…You Should Be

Tyler Durden's picture




 

Submitted by Brandon Smith from Alt-Market

Economic Alert: If You’re Not Worried Yet…You Should Be

 

For the past four years I have been covering the progression of the global economic crisis with an emphasis on the debilitating effects it has had on the American financial system.  Only once before have I ever issued an economic alert, and this was at the onset of the very first credit downgrade in U.S. history by S&P.  I do not take the word “alert” lightly.  Since 2008 we have seen a cycle of events that have severely weakened our country’s foundation, but each event has then been followed by a lull, sometimes 4 to 6 months at a stretch, which seems to disarm the public, drawing them back into apathy and complacency.  The calm moments before each passing storm give Americans a false sense of hope that our capsized fiscal vessel will somehow right itself if we just hold on a little longer...

I don’t have to tell most people within the Liberty Movement that this is not going to happen.  Unfortunately, there are many out there who do not share our awareness of the situation.   Debt implosions and currency devaluation NEVER simply “fade away”; they are always followed by extreme social and political strife that tends to sully the doorsteps of almost every individual and family.  The notion that we can coast through such a tempest unscathed is an insane idea, filled with a dangerous potential for sour regrets.

There are some people who also believe that the private Federal Reserve with the Treasury in tow has the ability to prolong the worst symptoms of the collapse indefinitely, or at least, until they have long since kicked the bucket and don’t have to worry about it anymore (the ‘pay-it forward to our grandkids’ crowd) .  I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year.  You can only stretch a sun-boiled rubber band so far before it snaps completely, and America’s financial elasticity has long been melted away.

A pummeling hailstorm of news items and international developments have made the first half of 2012 almost impossible to track and analyze.  The frequency at which negative information has surfaced is almost dizzying.  However, a pattern and a recognizable motion are beginning to take shape, and, I believe, a loose timeline is beginning to form. 

At the end of January, I covered the incredible nosedive of the Baltic Dry Index (a measure of global shipping rates that signals a fall in global demand) to historic lows.  I pointed out the tendency of stocks and the general economy to crash around 8 months (sometimes a little longer) after the BDI makes such a dramatic downturn.  Mainstream analysts, of course, attributed the fall to an “overproduction of ships”, which is the same exact excuse they used when the BDI collapsed back in 2008 just before the derivatives bubble burst.  It would seem that the cable TV talking heads were wrong yet again, as the international market facade quickly evaporates right in line with the BDI’s almost prophetic knack for calling an economic derailment in advance.

Here are some of the most important reasons why every American should be prepared for much harder days, especially before the end of 2012:

The European Union Is Officially Dead In The Water

Stick a fork in er’, the EU is done!  We are talking about full scale dismantlement, likely followed by a reformation of core nations and multiple collapse scenarios of peripheral countries.  The writing is all over the wall in the wake of the latest election results in Greece and France, where, as alternative researchers have been predicting for some time, the battle between the government spending crowd and proponents of austerity has reached a fever pitch. 

The Greeks and the French are royally pissed over draconian cuts in public programs and the destruction of pensions which have been a mainstay of their economies for quite some time.  They are also furious over being sold off like collateral to the IMF and World Bank.  Rightly so.  Like the American taxpayer, the taxpayers of floundering EU nations are wrongly being held responsible for the financial mismanagement and fraud of their governments and global banks which have remained untouched and unpunished for their trespasses.  The problem is, the voters of both countries are signing on to the socialist/quasi-communist bandwagon in response.  In Greece, the Left Coalition Party, a splinter group of the traditional communist party, has now taken a primary position of power:

http://www.reuters.com/article/2012/05/07/us-greece-idUSBRE8440DG20120507

In France, voters have elected socialist Francois Hollande (a Bilderberg attendee), whose latest promise is to spend France into recovery through his “pro-growth agenda”:

http://news.yahoo.com/blogs/ticket/french-president-elect-hollande-won-t-difficult-obama-195617064.html

I have no doubt that the elections of the EU are as manipulated by elitists as they are here in the U.S., and I’m sure false paradigms abound.  Have Europeans forgotten that it was overt government spending that set them on the path to calamity in the first place?  Or, are they like Americans; just desperate for any change in the ranks of leadership?  One would think that they would take note of the problems here in our country and realize that electing a socialist to replace another socialist is no way out of economic hardship.

Former officials like Nicolas Sarkozy may have claimed to be distanced from the socialist ideal, but, as with all globalist puppets, their actions did not match their rhetoric, and they have always supported policies of centralization and big government.  The French and the Greeks have essentially replaced closet collectivists with outspoken collectivists, and will see NO relief from the crisis in the Euro-zone as a result of the political reordering.  In fact, the stage has now been set for a volatile chain of dominos.  Germany, which is the only economy left holding the EU together, has been unyielding on austerity cuts.  A conflict between France and Germany is now inevitable.  Neither will compromise their position, and I can see no other eventual result than a reexamination and perhaps abandonment of the EU charter. 

How does this affect America?  Being that international banks and corporations have forced our countries into interdependency through the engineered chicanery of globalization, any collapse in Europe is going to strike hard around the world, but the worst will hit the U.S. and China.  Which is probably why China is disengaging trade away from the U.S. and the EU and focusing on other developing nations:

http://www.reuters.com/article/2012/05/08/us-china-economy-trade-idUSBRE84702N20120508

If you thought the Greek rollercoaster was a pain in the neck for investment markets, just wait until the whole of the EU is in a shambles! 

Spain is next in line, with a 25% official unemployment rate and a massive black market economy forming.  As I have been saying for years now, when governments disrupt the financial survival of the people, they WILL form their own alternatives, including black markets and barter markets.  It is about survival.  The Spanish government does not care much for these alternatives, though, and has now banned cash transaction over 2500 euros in a futile attempt to squeeze taxes out of the populace through digitally tracked payment methods:

http://thedailybell.com/3814/Spain-Bans-Cash

Another major concern for Americans is the fact that Europeans are inching towards an abandonment of the dollar.  Francois Hollande has openly called for an end to the dollar’s world reserve status, and with a majority backing of the French people, he could easily make this happen, at least where France is concerned.  All it takes is for a few key countries to publically and completely drop the Greenback and the dollar’s reputation as a safe haven investment will be quashed.  This could very well happen before 2012 is over.

QE3 Is The End

Here is the bottom line; U.S. growth is a theater of shadows.  There has been no progress, no recovery, only the misrepresentation of statistics.  Millions of Americans have fallen off unemployment rolls because they have been jobless for too long, which lowers the unemployment rate, but does not change the fact that they are still without work.  Durable goods orders are dropping like an avalanche.  U.S. credit has been lowered yet again by rating agency Egan-Jones.  With China making bilateral trade deals in numerous countries on the condition that the dollar be dropped as the primary purchasing mechanism, and with the EU turning to economic mulch, the currency’s safety is nonexistent.  Traditional investors who cling to the idea that a falling Euro spells dollar strength will be sorely disappointed when the currency is suddenly being rejected in international currency markets.

The Federal Reserve has already stated that any signs of “relapse” into recession (the recession that we never left) will be met with all options on the table, including QE3:

http://www.reuters.com/article/2012/04/12/us-usa-fed-idUSBRE83B1KD20120412

I believe that QE3 will probably be announced this year (due in large part to trauma from Europe), and, that this will trigger a mass movement by foreign nations to drop the dollar as the world reserve.  QE3 will be the straw that broke the camel.  How exactly this will play out socially and politically, I do not know (I could take a good guess though).  But, the technical results are predictable.  The Fed will respond to the lack of treasury purchases by ramping up fiat printing in order to cover the ever increasing costs of the government machine.  The Greenback will immediately lose a large portion of its value, at least in terms of imported goods, causing inflation in prices.  Oil and energy prices will skyrocket if OPEC follows suit (which they will, though the Saudis may still honor dollars for a time).  Doing any traditional business will become nearly impossible, and price inflation will dominate the lives and the minds of average unprepared citizens.            

The amount of time that it will take for these difficulties to unfold is also not clear.  We are operating in uncharted territory, and dealing with a collapse scenario on a truly planetary scale.  My best advice is to assume that the avalanche will move fast.

While markets in our country have seen only mild disruptions so far this year, their solidity is predicated on a host of props and costume pieces, any one of which could pull the rug out from under America’s suspension of disbelief if it strays but a little from the illusion.  As long as the dollar holds, stocks can be infused with bailout juice through major banks.  So can major companies and even desperate state governments on the verge of bankruptcy.  The Dow will remain relatively friendly, and day traders and the public will remain happy.  As soon as the dollar comes into question, all bets are off…

Does This Mean Doom, Or Just Another Bad Day?

The real beginning of today’s collapse is tied to the events of 2008.  The pace of it has been deceptive, but also, in a way, it is a gift.  Over the past four years, I have personally seen the awakening of thousands of people that may have never had the chance if the system had gone into full spectrum breakdown right away.  The question now is, how much longer can the U.S. wobble along on one wheel?  In my view, and from the evidence I see in markets at the moment, not much longer. 

It is hard to set aside any expectations that the next leg down will be easy to digest for the populace.  The reality of our predicament is starting to hit home.  All the tax return checks have been spent.  The credit cards have been maxed.  The new cars have been sold off and traded in for ghetto-mobiles.  The good jobs have been replaced with Taco Bell slavery.  A trip to see The Avengers is now the family vacation.  And, the distractions of reality TV just aren’t buttering our bread anymore.  It’s the little things at first that really signal the financial mood of a society, as well as reveal the more vital and looming issues just over the horizon.

All indicators suggest that this year will be unlike any other before.  In 2008, we saw the first trigger events for the collapse.  In 2008/2009, we saw the creation of the bailout culture, setting the stage for inflation and dollar disintegration.  In 2010, we saw the first bilateral trade deal cutting out the dollar between China and Russia, which is now the template for trade deals all over the globe.  In 2011, we saw the first downgrade of the U.S. credit rating and the crisis in the EU become epidemic.  In 2012, I see not just another difficulty to add to the mountain, but a culmination of all these detriments to produce something entirely new; a vast and subversive realignment forcing many of us to take a more aggressive stance in the fight for an economically and socially free America.

Financial disasters have always been a convenient catalyst for a host of even more frightening obstacles, including civil unrest, and blatant totalitarianism.  This is the cusp.  It is one of those moments that people of later generations read about in awe, and sometimes horror.  The “doom” is not in the event, but in the response.  What we make of the days approaching determines the darkness that they cast upon the future.  It is a test.  It is not something to be dreaded.  It is something to be seized upon, and dealt with, as great men and women before us have done.  At the very least, we know that it is coming.  That, in itself, could well seal our success…

 

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Tue, 05/08/2012 - 12:57 | 2407116 akak
akak's picture

 

Then, according to legal docs, Travolta began rubbing the masseur's leg, touched his scrotum and the shaft of his penis. 

I wonder, does the masseur have a rubber scrotum?

Tue, 05/08/2012 - 20:49 | 2408657 fuu
fuu's picture

+1

Tue, 05/08/2012 - 09:46 | 2406229 Silveramada
Silveramada's picture

Ben AssShalom is trying so hard to avoid the winter cycle of the economy by burning trillions of federal reserve notes-ponzi-monopoli paper, but the same paper will only give you little fire and heat, and the clouds are now gathering around the US financial system... the great cold is coming

Tue, 05/08/2012 - 10:14 | 2406378 DosZap
DosZap's picture

There's the gold smash down everyone was waiting for. 1585 by lunch?

Bring it..............................been waiting for a good chance at some DCA.

Tue, 05/08/2012 - 10:25 | 2406435 toady
toady's picture

I have amassed a stack of paper to exchange at the coin shop. Now I just need to catch the falling knife.

Today or tomorrow?

Tue, 05/08/2012 - 11:27 | 2406750 RWR
RWR's picture

EVERY AMERICAN TAX PAYER NEEDS TO WATCH THIS!

 

http://www.wthr.com/video?clipId=7054149&autostart=true

Tue, 05/08/2012 - 12:49 | 2407068 Silver Bug
Silver Bug's picture

The part is just starting. Hold tight to your gold, silver and guns.

 

http://silverliberationarmy.blogspot.ca/

Tue, 05/08/2012 - 08:53 | 2406004 GetZeeGold
GetZeeGold's picture

 

 

 

What.....me worry?

 

Excuse me......I have to go buy some gold now.

 

Tue, 05/08/2012 - 09:14 | 2406084 azzhatter
azzhatter's picture

you must be......well..... uncivilized

Tue, 05/08/2012 - 09:15 | 2406090 GetZeeGold
GetZeeGold's picture

 

 

My momma was a Philistine......it runs in the family.

 

Tue, 05/08/2012 - 08:54 | 2406005 maxmad
maxmad's picture

Collapse BITCHEZ!

Tue, 05/08/2012 - 08:56 | 2406016 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

'...Francois Hollande (a Bilderberg attendee)'

 

Plus ça change, plus c'est la même chose

(The more things change, the more they stay the same)

Tue, 05/08/2012 - 08:57 | 2406017 ChrisDG74
ChrisDG74's picture

Don't worry. The Bernank has our back. Go long HPQ(for the ink).

Tue, 05/08/2012 - 09:02 | 2406035 GetZeeGold
GetZeeGold's picture

 

 

I hear the distinct sound of helicopter turbines winding up in the distance.

 

Romeo foxtrot......shall we dance.

http://www.youtube.com/watch?v=ZkH5Ak4wAnY

 

Tue, 05/08/2012 - 09:38 | 2406185 Boeing Boy
Boeing Boy's picture

+1 made I laugh..

Tue, 05/08/2012 - 08:59 | 2406023 1835jackson
1835jackson's picture

Prosperity....Peak.....Decline....Bottom.....Frustration.....War........Rinse and Repeat. Humanity has this very annoying tendency to NEVER learn. Fuck, I will eat my hat if we have peace at the end of this mess.

Tue, 05/08/2012 - 10:06 | 2406252 Ag Tex
Ag Tex's picture

Not so much humanity never learns, rather history is intentionally deleted, manipulated and skewed so humanity can't learn.

 

"History is a set of lies agreed upon."  - Napoleon

 

 

Tue, 05/08/2012 - 10:27 | 2406458 Jake88
Jake88's picture

"Humanity has the annoying tendency to never learn" Well Duh! Have you met any humans. Why would you expect them to learn.

Tue, 05/08/2012 - 09:00 | 2406027 the not so migh...
the not so mighty maximiza's picture

I like the positve attitude ending of the article.

Tue, 05/08/2012 - 09:03 | 2406039 Dr. No
Dr. No's picture

 It is a test.

Considering how Americans have been doing on tests recently, I am not sure how it will play out.  I do recognize some events are out of my control.  So that is a start.

Tue, 05/08/2012 - 09:25 | 2406128 francis_sawyer
francis_sawyer's picture

"We're #39!"... America... Fuck yea!

Tue, 05/08/2012 - 09:00 | 2406031 Fate
Fate's picture

Wonder how long it'll be before the "peripheral" nations start calving off the Eurozone like icebergs off a glacier?

Tue, 05/08/2012 - 09:01 | 2406034 youngman
youngman's picture

"Traditional investors who cling to the idea that a falling Euro spells dollar strength will be sorely disappointed when the currency is suddenly being rejected in international currency markets."

I agree with this statement...smaller up and comers will try to stay out of the dollar as they see what is going on...and they do not wan to lose the hard earned gains they are making....so gold and silver is one option...another is a new reserve currency or at least another option.....so all those run to stability of the US Bond market are going to get burned...the Fed will buy all that is being sold...until they can´t...

Tue, 05/08/2012 - 09:07 | 2406053 cowdiddly
cowdiddly's picture

Im going to do just the opposite of what that bagholder Buffets is talking. Im looking barbarious relics and a good cave to buy.

Tue, 05/08/2012 - 09:09 | 2406064 GetZeeGold
GetZeeGold's picture

 

 

Better hurry or you'll get stuck in line behind fat Chuck Munger....could take all day if that happens.

 

Tue, 05/08/2012 - 09:27 | 2406135 francis_sawyer
francis_sawyer's picture

Bank holiday in 5...4...3...2...

Tue, 05/08/2012 - 11:07 | 2406655 skipjack
skipjack's picture

It's all in the timing.  The Euro will get smashed first, then the BRICs plus Australia and India, then the USD will slide into oblivion.  For a time, the USD will be the least poxed whore in the brothel...then say nighty-night to the USD as well.  The USD will be the last to be rejected...but its turn will come.

Tue, 05/08/2012 - 09:04 | 2406040 JustObserving
JustObserving's picture

"I have no doubt that the elections of the EU are as manipulated by elitists as they are here in the U.S."

Not just elections - markets too.  Gold and silver should be rallying on the Greek news.  Gold down 1.6% and silver down 2.12%.



Tue, 05/08/2012 - 09:21 | 2406113 Roger Knights
Roger Knights's picture

Gold's decline during these crises in Europe is partly due, I suspect, to central banks "lending" their gold to national banks that are short of cash. These banks then dump it on the market (they're in a rush).

Tue, 05/08/2012 - 10:09 | 2406353 americanspirit
americanspirit's picture

And the Chinese buy every gram

 

Tue, 05/08/2012 - 09:03 | 2406041 manhunter
manhunter's picture

The EU is not 'done'. The French and Greeks will learn what Berlusconi learned; the ECB cannot be forced to fund government defecits. The link between the currency and the nation/state is severed. This is the strength of the euro; the ECB will maintain the banking system, not the profligate state.

Compare that to the US which prints its mistakes onto the back of the currency.

Euro is strong like bull. The USD is doomed. Euro FTW.

 

Tue, 05/08/2012 - 09:10 | 2406067 LawsofPhysics
LawsofPhysics's picture

LOL!!

So the Euro is strong because it will save banks and not the state?  What is it that banks actually produce of real value again, I mean aside from debt?  FAIL.

Tue, 05/08/2012 - 09:42 | 2406214 manhunter
manhunter's picture

Banking system comes in handy; try to live without one. If Greece wants to try that, they can leave the euro. Not likely.

Tue, 05/08/2012 - 10:34 | 2406488 LawsofPhysics
LawsofPhysics's picture

I think you better rethink your position and ask yourself what is more important, banks, or the rule of law.  Banks and the financial sector have had the chance to police themselves and prosecute the fucking fraud.  They chose not to, now everyone will pay the price.  Fuck the paper-pushers.

Not very familiar with Greeks are you.  Wake the fuck up and get outside you parents basement.  The Greeks were never really credit worthy and they knew it.  The greeks will be just fine. 

Tue, 05/08/2012 - 11:04 | 2406646 DaveyJones
DaveyJones's picture

banks and the finance sector have also ballooned way beyond their normal percentage of the economy. Much of it is unnecessary, counterproductive and criminal 

Tue, 05/08/2012 - 11:25 | 2406734 manhunter
manhunter's picture

Don't misunderstand; some banks can and will fail, but the system will be maintained. They need that for trade.

Tue, 05/08/2012 - 12:28 | 2407002 Dumpster Fire
Dumpster Fire's picture

Well that was much ado about nothing then.

Tue, 05/08/2012 - 10:21 | 2406289 taeonu
taeonu's picture

Centeral Banks get the athority to print money from the State so who exactly is going to issue the full faith and credit to back up the banks currency?  All the State has to do is rescind the authority of the banks to create fiat money and leverage it to infinity via fractional reserve banking and then nationalize the banks and it's game over for the banksters who by then will be sitting in State owned prisons.

Also, currently the banks own the State so why would they cut off their ability to unload their debts onto the public?

Tue, 05/08/2012 - 11:26 | 2406740 manhunter
manhunter's picture

You obviously have never looked at the ECB structure. If you did, you wouldn't write this.

Tue, 05/08/2012 - 12:35 | 2407026 LawsofPhysics
LawsofPhysics's picture

Contradict yourself much?

Tue, 05/08/2012 - 09:04 | 2406043 orangegeek
orangegeek's picture

If gold is supposed to be going up, why are gold stocks way down?

 

http://bullandbearmash.com/chart/spot-gold-daily-7-2012/

Tue, 05/08/2012 - 09:11 | 2406072 RoadKill
RoadKill's picture

Arghhhhh....

Debt defaults and deflation are BAD for PMs (hehehe PMS).

You need printing. How many times do I have to say it.

Eather gold and spx are both going to 1000 or they a.re both going to 2000

Tue, 05/08/2012 - 09:17 | 2406097 GetZeeGold
GetZeeGold's picture

 

 

If gold is supposed to be going up, why are gold stocks way down?

 

Because they're getting shorted with hot QE cash.

 

Any other questions?

 

Tue, 05/08/2012 - 09:31 | 2406157 MrRadiologist
MrRadiologist's picture

Your IQ is too damned high. [/sarcasm]

Tue, 05/08/2012 - 09:04 | 2406044 monopoly
monopoly's picture

Agree, I am making my ususal phone call to a fine company where I purchase my freedom. What a discount this is. The Madness of the Crowds. Beyond words.

Tue, 05/08/2012 - 09:20 | 2406105 GetZeeGold
GetZeeGold's picture

 

 

When everyone else is losing their heads....make sure you keep yours.

 

Tue, 05/08/2012 - 12:38 | 2407043 crouton
crouton's picture

When the going gets weird, the weird turn pro

Tue, 05/08/2012 - 09:04 | 2406045 Jason T
Tue, 05/08/2012 - 09:42 | 2406211 bnbdnb
bnbdnb's picture

The head and shoulders of God.

Tue, 05/08/2012 - 09:04 | 2406046 bdc63
bdc63's picture

"The doom is not in the event, but in the response"

Hit the nail on the head with that one, and it scares the freakin shit outta me ...

Tue, 05/08/2012 - 09:07 | 2406052 Benjamin Glutton
Benjamin Glutton's picture

Love the picture. That's what my whole life looks like.

 

Long FISH.

Tue, 05/08/2012 - 09:07 | 2406054 sessinpo
sessinpo's picture

"Stick a fork in er’, the EU is done!"

"he Federal Reserve has already stated that any signs of “relapse” into recession (the recession that we never left) will be met with all options on the table, including QE3:

http://www.reuters.com/article/2012/04/12/us-usa-fed-idUSBRE83B1KD20120412

I believe that QE3 will probably be announced this year"

 

Comment:

Nothing new here. Basically a repeat of what I said yesterday, but I explained why. 2403545

"Currency wars. It's no coincidence that the ISDA was reviewing certain policies (at some point certain EU members were going to be forced into default to damage the euro). How to maintain US dollar easing while not allowing the US dollar to plunge. Sack a competing currency, the Euro. the EU monetary experiment is finished. The bet is that the EU will print massively, strengthening the US dollar. The miscalculation is that EU will not print given the rising nationalism and fight against austerity. Massive spike in euro to cover debts. Anyway, rally on. Much more to look forward to in the last part of May and June. Meanwhile, we have JP Morgan still surpressing the PMs. Its an offensive on many battle lines and those are just a few."

 

Tue, 05/08/2012 - 09:07 | 2406057 RoadKill
RoadKill's picture

You have been following the market for 4 years. Holy hell. Your knowlege must be epic!!!!!

Seriously, you are a rookie. You just made the rookie mistake of making a big bet too soon.

Ive been doing this for 15+ years and im still a newbie.

Paitence young Padawan.

Tue, 05/08/2012 - 09:14 | 2406085 mayhem_korner
mayhem_korner's picture

 

 

By your admission, you're a newbie and therefore haven't got it figured out yet...so how do you know he's making a mistake? 

Sorta "backhanded humility"...

Tue, 05/08/2012 - 11:05 | 2406649 Joe Sixpack
Joe Sixpack's picture

It's like doctors- many have worked for 30-40 years, yet they tell you they are still practicing.

Tue, 05/08/2012 - 09:41 | 2406206 pyrat
pyrat's picture

We all know it's coming... the timeline can always be manipulated, look around.

Tue, 05/08/2012 - 10:25 | 2406433 trembo slice
trembo slice's picture

Brandon Smith is a very talented writer.  I'm not sure of his credentials when it comes to finance, but he said he has been covering the financial crisis for four years -- this is not the same as following the market for four years.  Vocabulary it's important!

I love that you have been at it for 15+ years and still consider yourself a newbie though :).  It's the right attitude!

Tue, 05/08/2012 - 09:07 | 2406059 Ljoot
Ljoot's picture

Central Planning taking silver to 28 and change.

 

Tue, 05/08/2012 - 09:08 | 2406061 poopman
poopman's picture

git yo guns gold and god in line, its the only way youll survive the imminent collapse!!!!

Tue, 05/08/2012 - 09:13 | 2406074 LawsofPhysics
LawsofPhysics's picture

Unit, Corp, God, and Country and in that order.  Nothing else will matter shortly.

Tue, 05/08/2012 - 09:19 | 2406109 poopman
poopman's picture

Well atleast we get to usher in the Messiahs return if it collapses.

Tue, 05/08/2012 - 09:53 | 2406272 roadhazard
roadhazard's picture

I'll skip the "god" part, thank you. I have enough problems already.

Tue, 05/08/2012 - 09:55 | 2406280 VelvetHog
VelvetHog's picture

A mouthful.  Thanks.

Tue, 05/08/2012 - 10:38 | 2406519 kridkrid
kridkrid's picture

Are you the VelvetHog who gets his picks in for each of the majors?  Have you seen eddie around?

Tue, 05/08/2012 - 09:08 | 2406062 midgetrannyporn
midgetrannyporn's picture

Bring it.

Tue, 05/08/2012 - 09:08 | 2406065 Henry Chinaski
Henry Chinaski's picture

In the fresh produce section of a grocery store yesterday...  Almost nothing under $3.99, including carrots and celery. Most things were to $4.99 and up from there.  This store also happens to have a large proportion of EBT shoppers.  Food stamps and gas prices are pushing food prices through the roof. 

I'm glad to have a vegetable garden and am going to give it a lot more attention this year.   

Tue, 05/08/2012 - 09:19 | 2406101 azzhatter
azzhatter's picture

I shop at a local grocery store in a rather unsavory neighborhood. I can say realistically 90% of all shoppers are using the EBT card. They buy a lot of shit too. Chips, bacon, ice cream appear to be big movers. Austerity will be epic for these fuckers.

Tue, 05/08/2012 - 09:30 | 2406151 francis_sawyer
francis_sawyer's picture

Just got the 2nd crop in the ground yesterday...

Tue, 05/08/2012 - 09:50 | 2406250 Gully Foyle
Gully Foyle's picture

azzhatter

How many days do you need to stand there stalking shoppers until you see 90% of them? What is it months? Years?

Do the small children report you to the cops, or are you merely homeless posting from a library account.


Tue, 05/08/2012 - 10:08 | 2406348 riphowardkatz
riphowardkatz's picture

If you click the B in the comment tool bar you can turn off your bold

Tue, 05/08/2012 - 12:08 | 2406919 krispkritter
krispkritter's picture

Shhhh...the bold makes it easier to know when it's him commenting and skip over them...

Tue, 05/08/2012 - 10:42 | 2406542 kridkrid
kridkrid's picture

Austerity is collapse.  It will be epic for everyone.

Tue, 05/08/2012 - 09:47 | 2406243 Gully Foyle
Gully Foyle's picture

Henry Chinaski

You all need to stay away from the Organic scam. Cost twice as much for equal or lesser taste and nutritional value.


Tue, 05/08/2012 - 09:53 | 2406262 VelvetHog
VelvetHog's picture

All the nutrition and quadruple the unpronounceable, carcinogenic chemicals.  You have missed the point.

Tue, 05/08/2012 - 09:58 | 2406295 Gully Foyle
Gully Foyle's picture

VelvetHog

I'm not quite sure where you went with that.


Tue, 05/08/2012 - 09:10 | 2406068 Bleeding Fart
Bleeding Fart's picture

Chicken Little: The Sky is Falling, The Sky is Falling!

I'll go out on a limb here and say that American declinism is much too in vogue these days and that the EU will take the dancefloor again in a glorious number between its two beautiful partners, Frankreich and Allemagne.

Tue, 05/08/2012 - 09:54 | 2406270 Gully Foyle
Gully Foyle's picture

Bleeding Fart

NWO needs to bring all nations to roughly the same state of political and economic equilibrium.

It's the only way it works.

No one will ever see a break up of the US. Big reset, but so what.

Russia came through it rather well.

So have other nations.

Most of the posters here just beat off to a mad max fantasy, where their great white family fights off hordes of raiders after their gold.

The reality is closer to Married with Children.

Tue, 05/08/2012 - 10:47 | 2406571 Lednbrass
Lednbrass's picture

Russia did, but quite a few of their "republics" went their own way.

Tue, 05/08/2012 - 11:08 | 2406660 Joe Sixpack
Joe Sixpack's picture

He did say "Russia did well" not "The Soviet Union" did well.

Tue, 05/08/2012 - 09:09 | 2406069 apberusdisvet
apberusdisvet's picture

Excellent piece that should be a wake-up call to the delusional.  Martial law is definitely in the cards, and so is the beginning of the end of the planet with Fukushima radiation.  The key question is :  do we go down fighting or meekly board the cattle cars?

Tue, 05/08/2012 - 10:23 | 2406419 my puppy for prez
my puppy for prez's picture

5 words and 1 number:

450 million rounds hollow-point 40 cbr

Tue, 05/08/2012 - 09:11 | 2406071 Loco Vida
Loco Vida's picture

I am offically scared

Tue, 05/08/2012 - 09:10 | 2406073 mayhem_korner
mayhem_korner's picture

 

 

Bravo for masterful use of the language:

"capsized fiscal vessel"..."closet collectivists"..."engineered chicanery"..."sun-boiled rubber band"..."theater of shadows"

 

Tue, 05/08/2012 - 09:11 | 2406075 Son of Loki
Son of Loki's picture
Bank of America Starts Mortgage Reduction Effort

 

Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.

 

http://finance.yahoo.com/news/bank-america-starts-mortgage-reduction-100...

 

BAC is so generous....pays to be a Deadbeat looks like. Why pay any bill anymore?

Tue, 05/08/2012 - 09:17 | 2406098 mayhem_korner
mayhem_korner's picture

 

 

BAC's only interest in mortgages is to maintain a "performing" tag on those dead-and-buried mortgages festering on their balance sheet.

Tue, 05/08/2012 - 09:21 | 2406115 azzhatter
azzhatter's picture

Fucking beautiful. I took a $150K loss on the sale of my home vs what I paid for it. I ate it myself. It was paid for and nobody with any sugar for me?

Tue, 05/08/2012 - 09:27 | 2406132 midgetrannyporn
midgetrannyporn's picture

They won't pay that either.

My final offer is this: nothing. [/corleone]

You'll get nothing and like it. [/smails]

Tue, 05/08/2012 - 09:29 | 2406144 pods
pods's picture

No worries, the make up will be from a federal program.

Oh, and they are just doing this so they can have standing when they foreclose.

pods

Tue, 05/08/2012 - 09:49 | 2406244 VelvetHog
VelvetHog's picture

BAC forgives some of your principle and then Uncle Spam through the IRS immediately demands taxes on the amount of loan that was forgiven calling it "income".  The ass fuckings will continue even if the morale doesn't improve. 

Give the house back to BAC instead.  FUGM.

Tue, 05/08/2012 - 12:07 | 2406732 Arnold Ziffel
Arnold Ziffel's picture

This entire attitude/system is a massive cultural/ethical problem of enormous proportions imo.

Rome fell not because their military was weak, etc...more likely their core values became rotten --corruption, fraud, greed, and so on--- starting at the top and trickling down to the "little guy" who felt, "hey, if they can do it, why not me?"

“Civilization: The West and the Rest,” by Niall Ferguson basically states the Western "civilization" is on the same downward spiral.

 

http://www.washingtonpost.com/entertainment/books/civilization-the-west-...

Tue, 05/08/2012 - 12:50 | 2407072 FreeNewEnergy
FreeNewEnergy's picture

I am 34 months delinquent on a BAC (via Cuntrywide) mortgage I inherited AND the bank has also paid the back property taxes. Thank you, genius banksters.

While I seriously doubt I will get a letter offering principal reduction, I'd love to see what they have to offer, since, AFAIK, they sold the loan to Fannie Mae. I wonder just how many times they expect to get paid on the same loan.

I am not paying them squat. Their foreclosure effort is 2+ years old and stagnating under the weight of their phony assignments and the rigors of NY civil procedure.

Fuck BAC. I will dance in the street when they are broken up and/or bankrupted.

Global financial collapse? Bring it. I am better prepared than 90% of people and have lived by my wits most of my life. A strong mind and willingness to survive and prosper beats any and all fiat currencies, bogus jobs and BS laws all day long.

Per aspera ad astra. Smoke 'em.

Tue, 05/08/2012 - 09:28 | 2406077 Incubus
Incubus's picture

There are no universal non-mathematical laws in any human systems; we're victims of solipsism. 

 

The game must continue because many of us want it to continue.  The system will continue and we will continue to ignore the fact that the table is tilted and a very few are acquiring massive wealth and power at our own expense; but we will continue to play because we love the pittance that is given to us to keep us content.   This is a game of "just enough."  It may take a little finesse--but if you allow these consumerist dogs "just enough,"  they will give you their lives and everything therein. 

As long as you do not force too many of them to extreme measures, you can continue the game and the "just enough" crowd will allow you to continue the game by ignoring any less-than-legal/moral actions that must be taken to preserve the game. 

 

It is no longer about morality, or justice, or fairness.  It is about keeping the chips on the table because we've been conditioned to love what we're told to love. 

 

I don't know about you, but I've got a job.  I'm not saying that I'm part of the "just enough" crowd, but I'd rather live peacably than having to fend off consumerist, feral, and federal trash on the streets once TSHTF.

 

An "End" implies that there is some governing force that will adjust the operations of corrupt systems when needed.  If those systems are managed artfully, there is no 'end.'

 

It will continue and all of you will pray for an end that will never come.  Your "end" will be theatrical war where you go off to kill other poor idiots from other countries.  And all of you will love your slavery.  So, enough of this bullshit fantasizing of some great justice.  All of you want theatre: fantasy--fiction.  None of you want reality, and trust me, reality isn't nice. 

The reason why we can't have honest and fair systems is because none of us want it.  Truth is hard to deal with; genuine justice has a great price.  The system is manifest of our own desires to be governed and told what to do with the fictions of higher values as some backset which we look to assure ourselves that simulation of truth and justice and fairness is just as good as the real thing. 

 

All you fools just want theatre and you're too damned stupid to know it. 

 

Tue, 05/08/2012 - 10:47 | 2406566 GCT
GCT's picture

Spot on incubus.  Most do not want reality of the true SHTF scenario, some of us have actually seen this having work in some coutries where the real shit did hit the fan.   The whole system from top to bottom is based on greed and will continue down this road.   The best one can hope for once they realize the system is here to stay or if they create a new system it will end up being just like the last one is to do their best to play the system and try to stay ahead of the game.

 Guns, bullets and canned food will not save you.  This will only prolong the agony.  Now being prepared for a disaster is smart, but will only sustain you for a certain amount of time.  Gold will not save you and I like my physical.  No matter how it plays out in the end you will need a community of like minded people to keep people going.  Guess what you will have a mini form of government.   Lately the doom and gloom is over the top.  Maybe because Rauh talks about some articles on ZH to back up his rhetoric.

Junk me all you like all financial systems of the past have collapsed.  This one will collapse as well but no one here can predict it.  I suggest you learn a skill using your hands if your worried about total collapse. 

Tue, 05/08/2012 - 10:49 | 2406575 kridkrid
kridkrid's picture

Is that you, Lloyd?  I don't want to sell anything, buy anything, or process anything as a career. I don't want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed. You know, as a career, I don't want to do that. 

Tue, 05/08/2012 - 13:01 | 2407130 FreeNewEnergy
FreeNewEnergy's picture

Well, incubus, you're almost right and your prose is exceptional. A+

However, there are some who actually will survive a holocaust or "end" to the ponzi and absence of the rule of law. I am one of them and I'm fast closing in on 60, so I actually remember when a handshake was a contract, judges weren't bought and sold on the cheap, banks paid 5% interest and most people actually had what was then known as "disposable income."

Since 9/11 and more intensely since 2008, our government and media have failed badly and sorely need replacing. I, for one, would love to go back to an era when prices didn't fluctuate wildly over days and weeks, when putting gas in your car didn't bust your budget and when a decent job paid for more than just bare necessities.

A reset or an end would be catastrophic for many, but a period for those with an eye for value and the future a chance to prosper. Not everybody is fooled, though I get the feeling that you fear change more than nearly anyone else around here.

Tue, 05/08/2012 - 09:13 | 2406078 Buzzworthy
Buzzworthy's picture

I'm long canned food, PMs, and ammunition.  Wouldn't want to be living in a big city when the SHTF that's for sure.

Tue, 05/08/2012 - 09:47 | 2406242 mayhem_korner
mayhem_korner's picture

 

 

U prolly already got 'em, but make sure you're long manual can openers.  ;)

Tue, 05/08/2012 - 11:28 | 2406753 chunga
chunga's picture

If you have a "totin' chip" old Cub Scout knives are good.

Modern can-openers fall apart after a few cans of beans.

Tue, 05/08/2012 - 09:13 | 2406079 yogibear
yogibear's picture

Greece, Italy and Spain, want to get back at the other EU members? Just start printing Euros by force. Flood the other members with the Euro!

You have piles of free money, just print it and pay back the other members that tried to screw you. The other countries that will be forced to take QEing.

 

 

 

Tue, 05/08/2012 - 09:16 | 2406086 francis_sawyer
francis_sawyer's picture

The foto in the article was of me & all my damn gold & silver was with me on that kayak trip...

Tue, 05/08/2012 - 09:16 | 2406095 Zen Bernanke
Zen Bernanke's picture

who is this guy, Nouriel Roubini's twin brother?  geez. 

Tue, 05/08/2012 - 09:24 | 2406107 Bloodgroove
Bloodgroove's picture

Go long U.S. Citizenism!

SERENITY NOW!

Tue, 05/08/2012 - 09:19 | 2406110 The Reich
The Reich's picture

Tyler, BDI's still a miracle to you, innit?

Tue, 05/08/2012 - 09:21 | 2406111 10mm
10mm's picture

I remember not so long ago in a interview with Soros he was asked about riots in America.He "Gleefully"stated Yes Yes.Im thinking it's in the cards for sure.

Tue, 05/08/2012 - 09:48 | 2406240 Sauk Leader
Sauk Leader's picture

He is funding it.

Tue, 05/08/2012 - 09:22 | 2406118 Sauk Leader
Sauk Leader's picture

CALLING MILLION DOLLAR BONUS... MDB WAKE UP. PLEASE TELL ME ITS OK

Tue, 05/08/2012 - 09:22 | 2406119 Titan Uranus
Titan Uranus's picture

Hmmm...  Whatcha got planned for December 21?

Tue, 05/08/2012 - 09:25 | 2406123 djsmps
djsmps's picture

"At the very least, we know that it is coming."  The vast majority of Americans either don't know or don't care.

Tue, 05/08/2012 - 10:52 | 2406585 hardcleareye
hardcleareye's picture

You can thank our education system and laissez-faire parenting for that...  most of our population is not capable of understanding what is happening in the financial systems and the implications.....

Tue, 05/08/2012 - 09:25 | 2406124 TooBearish
TooBearish's picture

USD will NOT collapse as long as the US MILITARY is predominate force in the world - SO SORRY DOOMSAYER!

Tue, 05/08/2012 - 09:29 | 2406148 realtick
realtick's picture

Exactly, thank you, see comment above.

Tue, 05/08/2012 - 09:47 | 2406231 francis_sawyer
francis_sawyer's picture

Yeah ~ Good thing for us we can print all the oil we need to keep that force projection running at 100% [sarc]

Tue, 05/08/2012 - 10:49 | 2406572 hardcleareye
hardcleareye's picture

I think the us produces enough crude to fuel it's military, they also have signification storage (of course it depends what kind of conflict we are talking about.....) .  And of course the military will be on the top of the oil food chain, just like during WWII, remember rationing cards... 

http://www.donaldsofpanolacounty.com/Pictures/WWII%20Mileage%20Ration%20...

 

Tue, 05/08/2012 - 11:32 | 2406766 francis_sawyer
francis_sawyer's picture

Oh yeah... "Shock & Awe", right?... We'll be in and out of there in no time flat... No need to 'occupy' either right?... Like goin' into Wisconsin... You zip in, you zip out...

~~~

& the best part is... drumroll... the oil revenues pay for the operation!... What could possibly go wrong?

Tue, 05/08/2012 - 10:00 | 2406313 riphowardkatz
riphowardkatz's picture

How does that work? They have had a tough time defeating an enemy that uses toyota 4 runners and home made bombs but they are going to enforce the use of dollars across the world? What?

Tue, 05/08/2012 - 10:37 | 2406521 hardcleareye
hardcleareye's picture

Yeah, they are just fuckin around, like they did in Vietam.  This isn't a "real war" like WW 2. 

If and when our people start getting killed, (not 911 with a few thousand souls and our pride damaged) but more  like London with the German fire bombing raids and you are going to see a whole different stlye of fighting emerge... <sarc>

http://www.youtube.com/watch?v=RLPnnPHkIuc&feature=related

Tue, 05/08/2012 - 11:35 | 2406776 GMadScientist
GMadScientist's picture

How does irradiating the resources you're trying to snatch help exactly?

Tue, 05/08/2012 - 10:20 | 2406413 hardcleareye
hardcleareye's picture

IMO the USD will not collapse right away (if at all...), it will go Euro, Japan, hard landing in China and during these events the USD will be the "least ugly" of the currencies.  But after these events look out......  btw, if history is any indicator, there is a very strong probability that there will be some sort of global conflict with this kind of global financial turmoil....

So yeah the US Military will help steer the outcome but it is by no means a guarantee that the USD will not collapse nor can you say that it will survive (to many variables), however the economy is going to tank (like nothing this generation has seen) and there will be much human suffering....  it is going to be "very interesting" to watch...  get your popcorn and a comfy seat <sarc>

Tue, 05/08/2012 - 09:24 | 2406125 El Oregonian
El Oregonian's picture

Commodities, foodstuffs, tradeables, weapons, with lots and lots of ammo (if DHS can hoard, so can I). "The tree of Liberty must, from time to time, be watered with the blood of both tyrants and patriots" -Thomas Jefferson 

Bring it on Bitchez/Banksters!!! 'cause you haven't left us many options...

Tue, 05/08/2012 - 09:26 | 2406130 williambanzai7
williambanzai7's picture

KICK IT FORWARD: OBAMA CAMPAIGN SLOGAN

Tue, 05/08/2012 - 09:37 | 2406179 GetZeeGold
GetZeeGold's picture

 

 

Hit the brakes!!!!

 

Tue, 05/08/2012 - 11:36 | 2406780 GMadScientist
GMadScientist's picture

Can't. Inflation 14-wheeler in the rearview!

Tue, 05/08/2012 - 12:29 | 2407000 francis_sawyer
francis_sawyer's picture

What Krugman sees as he eyes that foto is an alien spacecraft on the horizon preparing for the invasion... Bullish!

Tue, 05/08/2012 - 09:44 | 2406216 junkyardjack
junkyardjack's picture

Damn it I thought we kicked it further than that, Hold on!...

Tue, 05/08/2012 - 09:43 | 2406218 VelvetHog
VelvetHog's picture

Bonzeye, this is your Moana Leesa!  My hat is off.

Tue, 05/08/2012 - 10:35 | 2406499 I_Rowboat
I_Rowboat's picture

"Kicking" the can ain't dreaming big.  We need an enormous, green-powered, sustainably-built eTrebuchet to hurl that fucker into orbit. 

   And really, what is an orbit, anyways, but falling downwards and sideways simultaneously, so that impact is continually avoided.  Maybe that's what the Profession of Economics has been shooting for all along -- Financial Low-Earth Orbit.

Give them their due.

Tue, 05/08/2012 - 11:29 | 2406757 RWR
Tue, 05/08/2012 - 09:29 | 2406141 Everybodys All ...
Everybodys All American's picture

The best piece I've seen written on this subject in a while.

Tue, 05/08/2012 - 09:28 | 2406143 realtick
realtick's picture

Great article, but the author is wrong in predicting QE3. There is no QE3 on the seas, and there will not be one on land.

How is it that so few see that the dollar is vital to National Security, and that deflation is as much a part of the plan as inflation?

"If the American people ever allow private banks to control the issue of their currency, first by inflation, THEN BY DEFLATION, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."

Tue, 05/08/2012 - 09:37 | 2406180 jmcadg
jmcadg's picture

Gold will only initially fall before the muppets realise there is nothing else. BTFD.

Tue, 05/08/2012 - 09:56 | 2406288 Seasmoke
Seasmoke's picture

serious question......how many ounces is a good goal to reach......5, 10, 20, 50 ??????

Tue, 05/08/2012 - 10:04 | 2406330 GetZeeGold
GetZeeGold's picture

 

 

 

When you have no more paper in the bank account.....you're done.

 

Tue, 05/08/2012 - 10:44 | 2406534 DosZap
DosZap's picture

serious question......how many ounces is a good goal to reach......5, 10, 20, 50 ??????

Depends on how much your portfolio is worth.

And how much you want to retain after and if this is over.

Say your total hands on net worth is 500k, you need to have a min IMHO of 25% , ( Marc Fabers opinion),Gerald Celente is almost 100% in,the big dogs are going 40-90% in.

Tue, 05/08/2012 - 11:39 | 2406799 GMadScientist
GMadScientist's picture

How heavy are they? ;)

Tue, 05/08/2012 - 09:38 | 2406194 Shleprock
Shleprock's picture

Sell in May !!!

Tue, 05/08/2012 - 09:41 | 2406198 RoadKill
RoadKill's picture

If you get to make doom & gloom predictions after 4 whole years of following the market then I will put my 15 years on the line and say...

The US will come out of this STRONGER THEN EVER!!!

Romney will be elected in November.  He will put Paul Ryan in charge of reforming Medicare and SS.  He will cut the deficit to 3% of GDP by the end of term 1.  IT WILL BE PAINFUL.  WE WILL HAVE A RECESSION.  But we will take our medicine the way we always have.

MEANWHILE the EUR will go below parity before desolving.  At least 6 countries will go bankrupt.  The Arab Spring will come to the Med.  Riots will be EVERYWHERE.  France will become Eastern Germany.  and only Germany and the UK will remain world powers.  Poland, Austria and Beenelux will join Germany in a monetary union.

China will have below 5% growth.  They will find out hundreds of billions IF NOT A TRILLION dollars of their "reserves" are missing.  Their will be riots that result in China splitting into 3-4 countries.

Japan will declare bankrupcy before the end of the decade and Fuki may turn out to mean the island looses more then half of its population (to emmigration not death).

Russia and OPEC will be crushed by $65 oil.

South America will reveal a Chavez / Castro alliance that engulfs nearly the entire continent.  Venezuela, Cuba, Argentina, Ecuador, Uraguay etc... will form a Commie alliance.  Columbia, Peru, Brazil and LatAm will allign more closely with America for Protection.

Anything I missed?

Tue, 05/08/2012 - 09:54 | 2406278 mayhem_korner
mayhem_korner's picture

 

 

You haven't missed anything, Mr. McMurphy.  You're room is in the east wing, down the hall.  Nurse Ratched will be with you shortly to get you oriented...

Tue, 05/08/2012 - 09:58 | 2406294 VelvetHog
VelvetHog's picture

And Uncle Benji will get the rubber room he so rightly deserves. 

Tue, 05/08/2012 - 10:22 | 2406423 RoadKill
RoadKill's picture

If you junked me can you please post...

A. If you just hatr America

Or

B. You think the US will underperform Europe, Jaoan and China.

Tue, 05/08/2012 - 11:44 | 2406823 mayhem_korner
mayhem_korner's picture

 

 

One thing about either/or questions is that usually neither option is relevant.

The only difference between the US and other exponentially-overindebted states is the time left until the collapse.  The comparisons have no value over any extended time period.

Tue, 05/08/2012 - 10:25 | 2406442 SIOP
SIOP's picture

RoadKill,  that would be a dream come true.

Tue, 05/08/2012 - 10:38 | 2406530 RoadKill
RoadKill's picture

-8 +1

But no comments refuting my claim.

Dont get me wrong I AM TRIPLE LEVERED SHORT THE MARKETS. Im jist saying.Europe, China and Japan are WORSE then US.

Tue, 05/08/2012 - 11:02 | 2406628 _underscore
_underscore's picture

I think you're wrong because the USA has greater debts (pro rata popn. & in absolute terms) & a declining productive base. You must also consider the level of consumption the average American takes for granted as an absolute minimum - several times that of the average Chinese/Indian/S.American/African etc. If up until now, with everything in your favour (reserve currency, cheap oil, vast natural resources, overhang form WW2 where everyone owed you money etc etc etc.), how do you think the USA can overcome the huge debt & then even get more productive? In fact that more productive, that you can out-compete all the BRICS & still honour the trillions in U$Ts you owe? It's a ludicrous thought.

Haven't you realised that the BRICS (and others) are only 'playing the game' with the reserve USD so that they can extract (some) value from the declining value of the USDs they hold? If you believe that military might can win the day, you obviously haven't been paying attention during the Afghan, Iraq & Vietnam wars. There's no reason to think the US & (most of) the EU won't just wither away like the former 'mighty' Soviet Union, British Empire, spanish empire, Roman, Assyrian etc (well, make your own list) In their day they exercised world (or as much of it was known then) hegemony - had the best weapons, agriculture, production etc. - it didn't stop the inevitable collapse though.

 

Tue, 05/08/2012 - 11:19 | 2406707 blunderdog
blunderdog's picture

You may be getting junked because your predictions are just complete whacko shit.  Sounds like a decent comic-book movie, tho.

Euro won't go below dollar parity anytime within the next year.  Oil won't fall below $80 in the next 5 years.  Romney won't win the election, but even if he does, he won't put Ryan in charge of entitlement spending. 

FWIW, I wouldn't junk ya.  I like seeing you young folks talk big.  Gives me hope.

Tue, 05/08/2012 - 11:39 | 2406788 mayhem_korner
mayhem_korner's picture

 

 

Your premise that the US will come out stronger than ever is based on disreality.  The mathematics of the unrepayable debt simply foreclose that outcome as a possibility.  Yes, there have been economic cycles in the past, but none have required ZIRP to perpetuate - and THAT is the flashing red light that this time IS different, and that escape velocity will not be reached.

I figured the rest of your word-salad was just a 20 oz can of Rock Star flushing itself through your synaptic pathways.

Tue, 05/08/2012 - 12:46 | 2407059 Money 4 Nothing
Money 4 Nothing's picture

If you haven't noticed in your "Empirical knowledge" of 15 years, it's a systematic global shut down to re-boot into a cashless society.

Tue, 05/08/2012 - 13:12 | 2407175 FreeNewEnergy
FreeNewEnergy's picture

I negged you and stopped reading at "Romney will be elected in November."

All  I see in that man is a greedy version of Nazi. You have two choices in November. Romney: Police State; Oblahblah: Welfare State.

Personally, while I loathe both, I'll take the latter. Easier to take money from fools who don't work for it than defend yourself against an armed and dangerous government.

Tue, 05/08/2012 - 09:43 | 2406210 youngman
youngman's picture

Doesn´t Greece hace a Bond sale today....it should be way over subscribed for sure....lots of demand....LOL

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