The Economic Collapse For Dummies

Tyler Durden's picture

If last week's 74-page all-encompassing thesis on "how 'everything' is interconnected and headed for 'complete systemic disintegration'" is a little too much, here is a 10 minute clip that ties together all the loose ends of the reality bubbling just beneath the veneer of hope that so many call our markets. A spectacular gathering of all things bearish that provides everything you wanted to know about the inevitability of a major economic collapse but were afraid to ask: a little too doom and gloomish perhaps, but sadly that does not make it improbable, especially in the current environment where the central planners keep doing the same over and over, hoping that just once "this time will be different." From demographic trends, over-leveraging, corporate profit extremes, deflationary impacts, and hyperinflationary reflexivity- there's a little here for everyone on a warm Saturday afternoon.

Beyond the epic first two minutes of Tice and Dent battling it out for doomiest of all, the thesis gets going...

(h/t Future Money Trends)

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Scribbles's picture

This video is terrible.  Consumer spending drives the economy?  Massive deflation?  Baby Boomers are not spending????

Nice try, jokers.

tmosley's picture

If I recall correctly, Future Money Trends is the latest incarnation of NIA, the pump and dump shop.  Those guys made videos just like this one, with the same narrator.

Also funny how they bashed "Euro and Pacific" currencies, which is clearly a dig at Peter Schiff, who pilloried NIA a while back, after which they swore they would get back at him.  Seems to me that their sudden switch to the deflationary position is part of that.

Fucking clownshoes.

ZeroPower's picture

Cute video. Some time back: HYPERINFLATION IS COMING

Now: DEFLATION IS COMING

Gold and silver will crash. But wait, only the ETFs. Actually, the mining stocks will do good! Except mining stocks are priced in "FIAT", aren't they?!

Doomsday music throughout was annoying as well. Oh well, lazy summer evening, otherwould wouldve downvoted vid without watching.

AldousHuxley's picture

http://www.youtube.com/watch?v=gCQIGiXf0JA

 

forget gold. make sure you have a glass coke bottle otherwise your family will perish.

Precious's picture

The Organizer in Chief just ordered 100 copies.

Dr Benway's picture

LOL I remember experiencing cognitive dissonance when, having liked their videos, I surfed their site and found penny stock recommendations.

 

Credibility is such a precious thing.

 

it is a shame they blew it like that

FEDbuster's picture

Ben Bernake, "there will not be a deflationary depression on my watch".  Jim Rogers, "The only thing Bernake knows how to do is print"

The "Big Print" will come before the big deflationary crash.  The result:

http://www.youtube.com/watch?v=rXH_12QWWg8

casey13's picture

Inflation/Deflation Face-Off: Harry Dent vs. James Rickards

http://www.youtube.com/watch?v=pSOGwthC_JQ&feature=player_embedded

Jim Rickards explains why no deflation.

economics9698's picture

 

The only ones who know are the central bankers, but history shows they will print as long as the regime supports them.  If the regime withdraws support, Jackson 1833, history shows assholes like Nicolas Bibble/Bernanke will collapse it as fast as they can.

And this is the problem with central banks, they control too fucking much.

When the reset comes ZH readers need to emphasize with whatever influence they have that banks need to issue their own currency backed by gold or silver with 100% fractional reserve banking.

 

engineertheeconomy's picture

You are wise. Problem is that the Military is bathing in Dollars and probably is not going to like it if their sector of the economy has the brakes applied. They could give a shit about civilians being stripped of everything and standing in soup lines. The printing will come in volume, but only the Military and Banker types will see it. You and I won't see a dime of it. When the reset finally does arrive, it will be martial law Zimbabwe style

mcguire's picture

agree, sort of.  first of all, if you are going to have a 'great reset', you have to presume that this is planned, and that there is a 'new regime', a 'new world order' if you will, that is waiting to emerge.  strategy says that the 'chaos' is necessary to achieve buy in for this NWO.  it is the same old hegelian trick that has been working for centuries, why would they change tactics now??  from this perspective, it is best to imagine the end before trying to figure out how we will get there.  in this case, after the 'reset', the globalists will have won major vicotries.  it will be a police state.  but banks will also still exist.  there is only of several routes that get us there, and they all involve violence.  its either terror (and not the underwear variety, im talking about 9/11 on steroids), or ww3, or both.  

flacon's picture

Read FOFOA, there is no effectual difference between hyper IN flation and hyper DE flation. Both are a loss of confidence in the currency and according to FOFOA we have already experienced hyper IN flation ($200T in derivative supply), all that is left for gold to become king is hyper DE flation. 

 

It is a matter of semantics. 

goldfish1's picture

Inflation means the dollar is losing value?

Muppet of the Universe's picture

The #1 problem with the world is monopolies.  & there is no greater monopoly than one that controls a nation's or group of nations' currency.

Chaffinch's picture

Excellent YouTube link - thank you!

Errol's picture

I'm not so impressed.

First, it is VERY US-centric.  There is more going on in the world than just the US demographic trend.  IMO, the world-wide decline in EROEI implies that debt the world over that is dependent on future growth to be paid back will not be paid back.

Second, they are very arrogant to assume that they know the exact order events will play out.  There are way too many moving parts and players in this system to know with certainty how it will play out.  The only thing we know for certain: the standard of living of the vast majority of people in the developed world IS NOT SUSTAINABLE, and therefore will not be sustained.  If you pay attention to events and stay nimble, the best you can reasonable expect to do is have your standard of living decline less than the average decline. 

tu-ne-cede-malis's picture

Okay why the hell was this not posted on ZH...This was awesome. Thanks

slowimplosion's picture

How does printing help if you can't get the money into the economy?  I guess BB could send everyone a check for $10K.

FEDbuster's picture

If you are on the low end, you get the Obama Bucks in the form of welfare, food stamps, disability, etc...  On the high end you get to borrow at zero and lend at ???, keeping the spread.  

It's all in how the defaults are handled, and there will be a bunch of defaults.   Banks are tossing their bad bets into the blackholes at the FED and ECB hoping to never be hurt by them again.  The FED and ECB take the shit at face value, then toss them on to their balance sheet (which doesn't really have limits or seem to matter).   How long this can go on is the big question?  Can central banks absorb and endless stream of shit or will the toilet clog and overflow?

I am on to you's picture

Credibility is such a precious thing,oh yes,so imagine if credibility or honesty, was a hard asset,like i said some time ago:

This world would change in a split second,if this was the case!

Sadly,even us(i for one)who dont, have, the big insight in economy for Dumpsters,can se this with the brain turned of,and getting Liborred!

Just a side remark!

HardAssets's picture

Well, of course, telling you what you probably already knew - - and agreed with - - was all about getting your email address so they could try to sell you something.

engineertheeconomy's picture

It's supposed to be against military law to use psych ops against civilians, but the entire United States Government and Banking System are one big huge Military Psych Ops Operation

Am I going too fast for some of you?

We are under martial law. That cop on the corner has several million dollars of miltary technology in his car, including accesss to your computer and your high tech analyzed personal files (that are kept up to date up to the minute) that include every thing that you have ever said or done your entire life (in 3D)

Public schools brainwash our children and train them to become soldiers but never teaches them the truth or teaches them how to think for themselves

Same for our universities

The False Media is everywhere including TV, Google, Radio, Newspapers, Theatres, on DVD's, billboards, magazines, etc, etc

Our economy, that's a joke. There are 2 seperate economies, the one that is mostly hidden in the form of zero's and one's inside the elites computers, and then the visible one that we all see for the working slave class.  They act like there are "unknowns" in the system when in actuality they have theft down to an extremely well engineered science

 They're doing this intentionally

 They make it look like it's all the bankers fault, like they're the bad guys or villians

 The Bankers just do what they're told to do or they get a nuclear bomb poked in their eyeball

 

Vic Vinegar's picture

That cop on the corner has several million dollars of miltary technology in his car, including accesss to your computer and your high tech analyzed personal files (that are kept up to date up to the minute) that include every thing that you have ever said or done your entire life (in 3D)

Hopefully that cop is savvy enough to see past all the dumb things I've done in life and realize the one of the smartest things I ever did was buy physical pm's.  

Real Estate Geek's picture

Wouldn't you rather he didn't know about your PM's at all?  That way you won't have to trot out the old boating accident yarn.

Vic Vinegar's picture

Good question.  But my answer is no.  I don't have a lot of $ to convert to pm's to begin with - so I'm not as worried about boating accidents as some here - and also I wish for everyone to look at metals as a store of value.  I'm not looking to get rich, just looking to help others.

engineertheeconomy's picture

Good advice Vic, junk Silver most likely the best place to start for 99% of the folks out there.

LowProfile's picture

As long as you hold it 1:10 gold:silver.

Joe Sixpack's picture

"

Cute video. Some time back: HYPERINFLATION IS COMING

Now: DEFLATION IS COMING"

 

Sounds like

 

Some time back: GLOBAL COOLING IS COMING

Now: GLOBAL WARMING IS COMING

 

The naswer: "Climate Change" (Obama campaigned on half of it).

 

For FMT: the next video will be "Financial Change"

Lore's picture

My comparison as well.

The video is entertaining, but the "deflationist" message seems conflicted to this viewer. Deflation is a fall in money supply, yet they spend most of their time talking about currency debasement and moneyprinting and loss of confidence and retreat to PMs as safe haven. They even refer specifically to the Austrians!  (What is "Quantitative Easing," if not an Orwellian epithet for inflation?!)

I humbly submit that a smart person disregards talk and focuses on walk. Eastern buyers aren't adding ~ 5,000T without good reason. The tungsten scandal wasn't foisted for no purpose. The ETFs aren't a reputed scam for nothing. Heck, if they follow GATA then they know what's going on. The metals aren't being manipulated by not-for-profit participants in order to prop them UP.

(Wasn't Prechtor the guy who said gold would never go past $175, or something like that?)

Oh well. Thanks for sharing in any event. The vid is well composed and thought provoking. The point about investing in future production as a proxy is solid. As a corollary, it should also be pointed out that public holding of shares is also the key to participation by hungry governments. If they want to skim tax off the top of electorate capital gains, they had better support the local mining sector.

cristo's picture

X2 and NIA stands for national IFLATION association now they're calling deflation . I caLL BULLSHIT TO THOSE PUMP AND DUMP FOOLS .

bigkahuna's picture

I liked NIA and G4T until they started spamming me with stock suggestions. That was it. Their message was fine, but now it has shifted from inflation to deflation followed by inflation. Then they will put me on another spam list?

MARGINKARLANDTHEBROKEBITCHEZ's picture

SERIOUSLY THEY SEND 3 EACH DAY ABOUT SOME GARBAGE BS STOCK THAT I WANT TO SHORT THEY SHOULD QUIT THEIR JOBS AND JOIN THE CIRCUS CAUSE THEY ARE NOTHING MORE THAN A BUNCH OF DAMN CLOWNS

Muppet of the Universe's picture

I think P&D are a wonderful thing.  & ffs, the very first thing I ever traded was BVSN.  & You know what?  I didn't get wiped out b/c I studied the NIA history of recommended stocks very carefully. In my honest opinion NIA provides market liquidity and the chance for providing new sectors of the market with additional finance.

Now right now NIA's latest recommended stock, SYNC, has hit multiweek low of 11-12 dollars!  This stock is looking extremely ripe for growth noting that their Q2 report is due within the week and SYNC is projected to have outstanding profits- especially noting they are the sole provider of the olympic games tv coverage online!  This is a once in a lifetime opportunity! 

Sync will not stay at these artificially low prices!

Doña K's picture

There will be pain of al kinds. Everyone agrees. But, the roads taken by TPTB are unpredictabe as the unintended consequences will pop up everywhere and there are not enough band-aids to stop them.

Bottom line: No one knows which way it will collapse and whether O'Bummer will pull a Chavez during the first signs of the collapse.

Stay with Agri-land hoping that it does not get taxed to extinction or get nationalized for the good of the "country" otherwise called shared sacrifice.

Stay with PM's and hide them well and precious and semi-precious commodities of any kind which do not attract attention.

If anyone has ideas of what other types of precious commodities are suitable, please enlighten us. (No diamonds please as the prices are also manipulated and controlled by De Beers.)

engineertheeconomy's picture

Palladium coins are starting to look like a good investment right now, I'm not exactly fond of Platinum or Rhodium but others are.

mcguire's picture

the most precious things to invest in now are relationships.  know your neighbors.

DanDaley's picture

I think that precious commodities is a term relative to circumstances. In future, some items will be considered precious that are very much taken for granted now, among them:

salt

yeast

toothpaste/toothbrushes/floss

aspirin/I-b-prophen

vitamins (especially C and the Bs -water soluable)

James Wesley, Rawles TEOTWAKI book is a good place to start.

Also, search the internet for 100 essential things (from the Bosnian war) to see what people who have been through a collapse think important.

jwoop66's picture

Good point.  In the Balkans, gold and silver weren't that important; toilet paper, cigarettes and liquor were.

CrazyCooter's picture

Tmosley,

You seem to have reasonably informed opinions about a range of subjects, so wanted to ask you a question. When the Federal Reserve goes tits up, the dollar goes with it ... yet, coins are issued by the Treasury and thus do not have the same counter party risk. So, not all dollars are equal so to speak.

I was curious if coinage (not the old PM coins - the junk tokens we have now) would decouple in value from FRNs (paper or electronic) and maintain some semblance of purchasing power as a function of the different counter party actually issuing the money.

Got an opinion or source on this subject?

Thanks!

Cooter

 

Temporalist's picture

Soon nickels will be devoid of nickel though so the question still stands.  If by 2014 they mint non-nickel nickels what is the answer?  Technically those "old" nickels will be "junk" as well.  I love those terms though...junk silver lol.

TheSilverJournal's picture

Pennies are next up. 1981 and prior are worth over 2 cents in metal content and 1982 and after have a metal value of over 1/2 cent.

Marginal Call's picture

Quarters are nickel clad copper.  So they have value. 

Joe Sixpack's picture

Yes, but quarters cost you $0.25 in todays fiat for a five cents in value. Nickels cost you $0.05 for around $0.05 cents in value. Use the resources yuo have now to position yourself optimally for the future.

Temporalist's picture

If you don't mind my butting in I think the paper and coinage will decouple at first from digital money/credit because it will be a symbol of stability.  Then people will start to recognize all the "junk" coinage for its real value for the metal content and the paper and "junk" will decouple next.

 

 

A Lunatic's picture

So really all you have to do to make a living is collect a dump truck full of nickels, find a refinery that will melt them down, and collect a check representative of the difference between the monetary value and the melt value, minus the transportation and refining costs of course. I guess it's slightly better than beating used paint chips into powder and reconstituting it...........

Doña K's picture

You would not have to melt them. they will be good as an exchange medium as it's so recornizable

Marginal Call's picture

Everybody knows the silver content of a 1983 quarter and it's easily recognizable.  So it's traded at it's metal content value.  A melted down version would have to be tested with acid to prove it's silver and thus not as easy to trade.

 

No need to melt it down.