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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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Sat, 07/21/2012 - 15:57 | 2639144 Scribbles
Scribbles's picture

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

Nice try, jokers.

Sat, 07/21/2012 - 16:17 | 2639170 tmosley
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.

Sat, 07/21/2012 - 16:36 | 2639202 ZeroPower
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.

Sat, 07/21/2012 - 16:53 | 2639224 AldousHuxley
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.

Sat, 07/21/2012 - 17:20 | 2639269 Precious
Precious's picture

The Organizer in Chief just ordered 100 copies.

Sat, 07/21/2012 - 17:33 | 2639281 Dr Benway
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

Sat, 07/21/2012 - 18:12 | 2639331 FEDbuster
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

Sat, 07/21/2012 - 18:28 | 2639348 casey13
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.

Sat, 07/21/2012 - 20:44 | 2639505 economics9698
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.

 

Sat, 07/21/2012 - 22:12 | 2639646 engineertheeconomy
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

Sat, 07/21/2012 - 22:43 | 2639682 mcguire
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.  

Sat, 07/21/2012 - 23:47 | 2639744 flacon
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. 

Sun, 07/22/2012 - 12:09 | 2640323 goldfish1
goldfish1's picture

Inflation means the dollar is losing value?

Sat, 07/21/2012 - 23:33 | 2639727 Muppet of the U...
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.

Sat, 07/21/2012 - 20:49 | 2639532 Chaffinch
Chaffinch's picture

Excellent YouTube link - thank you!

Sun, 07/22/2012 - 12:39 | 2640364 Errol
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. 

Sun, 07/22/2012 - 09:38 | 2640050 tu-ne-cede-malis
tu-ne-cede-malis's picture

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

Sat, 07/21/2012 - 20:58 | 2639544 slowimplosion
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.

Sat, 07/21/2012 - 23:05 | 2639651 FEDbuster
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?

Sat, 07/21/2012 - 19:03 | 2639403 I am on to you
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!

Sun, 07/22/2012 - 22:32 | 2641525 HardAssets
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.

Sat, 07/21/2012 - 18:15 | 2639298 engineertheeconomy
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

 

Sat, 07/21/2012 - 18:29 | 2639351 Vic Vinegar
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.  

Sat, 07/21/2012 - 20:28 | 2639494 Real Estate Geek
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.

Sat, 07/21/2012 - 20:42 | 2639516 Vic Vinegar
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.

Sat, 07/21/2012 - 22:18 | 2639649 engineertheeconomy
engineertheeconomy's picture

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

Sun, 07/22/2012 - 00:56 | 2639815 LowProfile
LowProfile's picture

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

Sat, 07/21/2012 - 21:56 | 2639623 Joe Sixpack
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"

Sun, 07/22/2012 - 00:00 | 2639726 Lore
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.

Sat, 07/21/2012 - 16:48 | 2639216 cristo
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 .

Sat, 07/21/2012 - 16:54 | 2639223 bigkahuna
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?

Sat, 07/21/2012 - 23:13 | 2639712 MARGINKARLANDTH...
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

Sat, 07/21/2012 - 23:33 | 2639729 Muppet of the U...
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!

Sat, 07/21/2012 - 19:50 | 2639227 Doña K
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.)

Sat, 07/21/2012 - 22:26 | 2639662 engineertheeconomy
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.

Sat, 07/21/2012 - 22:46 | 2639687 mcguire
mcguire's picture

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

Sun, 07/22/2012 - 10:57 | 2640187 DanDaley
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.

Sun, 07/22/2012 - 12:35 | 2640360 jwoop66
jwoop66's picture

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

Sat, 07/21/2012 - 16:57 | 2639228 CrazyCooter
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

 

Sat, 07/21/2012 - 17:02 | 2639238 Doña K
Doña K's picture

IMHO, only nickels

Sat, 07/21/2012 - 17:10 | 2639252 Temporalist
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.

Sat, 07/21/2012 - 17:24 | 2639272 TheSilverJournal
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.

Sat, 07/21/2012 - 19:40 | 2639439 francis_sawyer
francis_sawyer's picture

Nickles bitchez!

Sat, 07/21/2012 - 20:59 | 2639548 Marginal Call
Marginal Call's picture

Quarters are nickel clad copper.  So they have value. 

Sat, 07/21/2012 - 21:59 | 2639628 Joe Sixpack
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.

Sat, 07/21/2012 - 17:10 | 2639245 Temporalist
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.

 

 

Sat, 07/21/2012 - 17:45 | 2639293 A Lunatic
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...........

Sat, 07/21/2012 - 19:48 | 2639449 Doña K
Doña K's picture

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

Sat, 07/21/2012 - 20:25 | 2639493 Vic Vinegar
Vic Vinegar's picture

Huh?

Sat, 07/21/2012 - 21:01 | 2639552 Marginal Call
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. 

Sat, 07/21/2012 - 21:03 | 2639555 Vic Vinegar
Vic Vinegar's picture

Not to pile on, but come on now.

Everybody knows the silver content of a 1983 quarter..

Everybody knows chicks with three boobs...

Sun, 07/22/2012 - 13:01 | 2640397 Marginal Call
Marginal Call's picture

doh!  typo.  1963 quarter.

 

Everybody doe's indeed know the silver content of a 1983 quarter.  Zero!

Sun, 07/22/2012 - 13:01 | 2640398 Citxmech
Citxmech's picture

Hey now, I've got a dump truck load of 1982 quarters I'll sell for the low, low price of just $6.00 ea.  =]

Sat, 07/21/2012 - 21:02 | 2639553 Vic Vinegar
Vic Vinegar's picture

Fair point, junker.  Let's go on...

...in what universe does the pre-2012 nickel become a recognized medium of exchange?  I hoard nickels on general principle, but I don't live in a fantasy-land, thinking I'm going to get rich off of it.  And I sure as shit know that if Mad Max hits, I'm not going to be having someone look at the issue date of my nickel before they decide to trade their chicken for it.

But if you have a better answer, give one.  You have until either: a) the Total Recall movie comes out or b) a chick with three boobs gets with you.  I'll give you until then, but no longer.

http://filmdrunk.uproxx.com/2012/07/heres-the-three-boobed-lady-from-tot...

From the article:

One of the biggest controversies surrounding Len Wiseman’s Total Recall remake was whether it would include the three-boobed hooker like the original (yes, this is considered a controversy in the movie blog world. accept it and move on). Wiseman promised it would, which seemed specious considering the movie is rated PG-13, and bare breasts and violence cannot coexist in a PG-13 film, so sayeth the MPAA. Based on these pictures (of model Kaitlyn Leeb) from Comic-Con, it looks like they found a work around. Nipple-covering fabric. You’ll get a three-boobed hooker, just not her nipples (talk about a ripoff). The full picture is technically SFW, but I put it below, after the jump because there’s a lot of underboob, and even though they’re not even real boobs, but… well look, I’m not going to try to justify the retarded, puritanical policies of our bosses, but there you go.

You do realize that movie blog world controversies = money blog world controversies, right?  Caring about chicks with three boobs is akin to caring about the value today's nickel.   

Sat, 07/21/2012 - 22:31 | 2639669 engineertheeconomy
engineertheeconomy's picture

I would save the worthless quarters to use in a slingshot to kill rabbits if you get hungry and don't have any marbles.

 lol

Sat, 07/21/2012 - 18:12 | 2639329 tmosley
tmosley's picture

They will temporarily have value as will physical dollars, then they will be worth their scrap value according to their composition.

That is my OPINION, though I think it is backed up by history.  I don't have a source at the moment, but I do remember hearing about how coins would shift in value as new denominations of paper money were printed, so that they always functioned as change.  I think this was in Zimbabwe, but I would expect to see the same mechanism in place in any form of severe hyperinflation (that invloves issuance of higher denomination bills).

That said, I think it is asinine to stockpile change.  Just stick with junk silver for that purpose.  Again, my opinion.

Sun, 07/22/2012 - 00:30 | 2639782 WSMassiv
WSMassiv's picture

Coins all through history have been counter marked.  It has has MOST frequently with stamps... and even occasional paper currency has been countermarked...

Sun, 07/22/2012 - 04:22 | 2639894 CrazyCooter
CrazyCooter's picture

I totally get silver. I totally get melt value. I perhaps structured my post wrong and didn't stress what I was really head scratching about...

The angle that really makes me curious is that if the Federal Reserve folds, FRNs go with it. This is massively deflationary. Coins are issued by the Treasury (US Mint) and would only become worthless if the US Government folds. So, its about a position for the common red neck (i.e. myself) to buy a bit of cheap insurance that might pay dividends down the road. I see this as a "grocery money" kind of bet, not a get-rich-on-the-collapse kind of scheme.

And, I will have junk silver too, but lets assume some Gresham's law remains in effect, so I want to spend the cheap money when possible. That is to say, if things get bad, I max the card first, burn the cash second, use base metal coins first, THEN I am willing to cough up silver and gold to eat.

To clarify, I use the word "deflationary" to mean that the money supply would massively contract if FRNs leave circulation due do a Federal Reserve implosion. One only has to read back to the Great Depression to see that in action.

I see hording current change as a two fold benefit:

  1. It stays 1:1 with "cash" so can be converted into/out of with no cost. I dont see a scenario where this "changes to the downside".
  2. It makes my safe hard to steal (1 cubic foot of change is a lot of mass and fits easily in the bottom of my safe)

From another angle, I see it as a sort of Exters pyramid, in order (bottom up):

  • Eagles (gold and silver)
  • Junk silver
  • Modern coins
  • Fiat paper dollards (FRNs)
  • Electronic money (credit cards, etc)

When things start to implode, electronic money goes first, then fiat, then coins, then bullion. I think it is very curious to point out the "split" happens between modern coins and fiat paper and that most overlook the possibility that coins will still circulate after FRNs are gone. Coins take RESOURCES to make, fiat, particularlly electronic, does not, making them a store of value in a crisis.

I had to work tonight, so I was very late to this post. I will recycle this at some point in the future, to see if I can get some more input. I would love to see more faults with this idea, but I am having a hard time resisting due to the 1:1 coin:fiat ratio with no conversion fee.

Regards,

Cooter

Sun, 07/22/2012 - 07:10 | 2639940 JoBob
JoBob's picture

Cogent word!

Sun, 07/22/2012 - 18:00 | 2641040 mccoyspace
mccoyspace's picture

I think you're right here. I'm dealing with change in a little different way.
I set aside/horde all nickels and pre 83 pennies. Everything else I throw into the change jar, along with a few small bills I have left over at the end of the week. After about a month or so I have about $60 and I use it to buy a gram of gold. It's a slow drip way to get some extra savings.
It's all just a grocery money game but why not?

Sat, 07/21/2012 - 18:42 | 2639368 greenEagles
greenEagles's picture

I think you are right. Just checked their website and pulled these gems off their site's disclaimer:

"We are publishers of publicly disseminated information on behalf of our clients, most of whom are issuers or non-affiliate third party shareholders of various issuers. We receive either monetary or securities compensation for our services and are required under Section 17(b) of the Securities Act of 1933, as amended (“Securities Act”), to specifically disclose our compensation..."

"1) We receive monetary or securities compensation from persons that claim they are a non-affiliate shareholder (“NAS”) or an issuer; however, we conduct no due diligence whatsoever to determine whether in fact they are a non-affiliate"

"5) We conduct little or no due diligence on the profiles we receive from the non-affiliate shareholders nor do we conduct due diligence on any other information we disseminate to the public"

etc etc etc.

Why is this on ZH?

Sat, 07/21/2012 - 19:19 | 2639412 TWSceptic
TWSceptic's picture

You are so wrong. The guy who produced this video is NOT part of NIA anymore he is independent now.

 

Also this guy does NOT approve of NIA actions like pump and dump. And he actually does agree with most of the stuff said by Schiff.

 

And the video does agree with inflation in the end if you'd watch it completely. So you're wrong on everything. Good job on spreading misinformation and having a bunch of morons agree with it to make it worse.

Sat, 07/21/2012 - 20:06 | 2639473 JPM Hater001
JPM Hater001's picture

"Future Money Trends is the latest incarnation of NIA"

Listen clowns.  VV left NIA long ago.  So judge the piece on the merits of the message...which I tend to think is spot on.

Sat, 07/21/2012 - 21:00 | 2639550 Rollerball
Rollerball's picture

Exactly!  The only thing deflating will be the value of fiat.

Sun, 07/22/2012 - 19:36 | 2641190 Anne Ominous
Anne Ominous's picture

Schiff was right - these guys are just milking the crash cow.

Sun, 07/22/2012 - 22:09 | 2641505 HardAssets
HardAssets's picture

Was always skeptical with NIA - - even with the sound off while watching their videos. I never listen to 20-something year olds with peach fuzz on their faces wearing suits from JC Penneys.

Sat, 07/21/2012 - 16:22 | 2639180 Marginal Call
Marginal Call's picture

It was terrible.  Gereration Y has given up?  People are curling up and waiting to die? 

 

It started out OK, but honestly the boomers aren't that important to the world economy anymore.  Of course, it's a giant appeal to their vanity that the world can't live without them!

Sat, 07/21/2012 - 17:26 | 2639274 WarriorClass
WarriorClass's picture

In the last 130 years of the NRA's existence, how many gun rights have you lost? How many rights has the NRA compromised away? Stop being fooled by this fake gun rights organization and join Gun Owners of America - they don't compromise!

Sat, 07/21/2012 - 17:49 | 2639304 A Lunatic
A Lunatic's picture

Yep, the NRA actually encouraged much of the language in the gun control act of '68. The best bet of course is to not rely upon anyone else to maintain your rights as an American citizen.............

Sat, 07/21/2012 - 19:44 | 2639443 francis_sawyer
francis_sawyer's picture

American citizen.... HAHAHAHAHA!

Sat, 07/21/2012 - 16:22 | 2639181 AldousHuxley
AldousHuxley's picture

economy won't collapse. US is full of fools who will spend their last dime at a dime store on some useless shit.

 

US had deflation last century. never again says the banksters.

deflation is bad for gold too. only shorts will make money.

 

I guess XYZ for dummies are really for dummies who can't think for themselves.

 

 

Sat, 07/21/2012 - 16:30 | 2639193 MsCreant
MsCreant's picture

Deflation as part of a cycle is plausible and even probable. We argue this stuff as if there is a static end destination when that is not the case. The question is the timing of the collapse: How long will the current system be able to keep distributing enough goods and services to us plebes to keep us in line? When it fails to do that, there will be social unrest.

Sat, 07/21/2012 - 16:57 | 2639231 AldousHuxley
AldousHuxley's picture

chinese creating next generation of consumers.

apple selling shit there.

 

chinese buying low utility luxury goods like good ole American consumers....pretty soon they will get a taste of credit card too.

Sat, 07/21/2012 - 17:14 | 2639260 Temporalist
Temporalist's picture

Perhaps but they also make no where near the salary of the "western world" and will take decades to approach that level.  Also it will take a generation of credit card users to accept credit as viable wealth, just as generations past did not use credit like they do now and many older people hate credit cards or pay their bills immediately.

Sat, 07/21/2012 - 22:03 | 2639636 Joe Sixpack
Joe Sixpack's picture

They make less, but there are 3x as many. So if there salaries approach 1/3 of our 1990s salaries, we have another US for a while.

Sat, 07/21/2012 - 21:07 | 2639562 slowimplosion
slowimplosion's picture

Yeah right.  The Chinese are not as stupid as our pols, they are not going to allow too much importing PERIOD.

Sat, 07/21/2012 - 21:09 | 2639563 Rollerball
Rollerball's picture

Do you really think the Chinese are going to empower a middle class?  You're dumber than you look.

Sat, 07/21/2012 - 16:57 | 2639232 TheSilverJournal
TheSilverJournal's picture

The economy can collapse at any moment, or it can continue until the amount of currency approaches infinite, and therefore becomes worthless. 5 years max. Tonight min.

Sat, 07/21/2012 - 17:02 | 2639239 bigkahuna
bigkahuna's picture

I agree with you. As to the social unrest, I have been trying to bring up this subject with family, neighbors, and friends. Trying to create a cooperative network in case there is any type of civil upheaval. I believe many of them now suspect I've ventured to the dark side of the moon.

I believe they think I'm some kind of Zimmermen neighborhood watch freak. It is difficult to get through though I find those with a military background have an understanding of what I am talking about. Regular old back yard burger flippers must be on a nice tranquil world somewhere that I in a way envy-though in another way these people will probably get offed or something - so I feel sorry for them.

Sat, 07/21/2012 - 17:56 | 2639313 Toronto Kid
Toronto Kid's picture

I am having the same luck as you. I can't even get my family to store a few extra cans of peas or get some sort of a pantry going in case the drought turns serious. I have a sister who is overweight and doing her level best to turn into a hoarder, but she won't start stocking a damn pantry.

My mother won't hear of it either. This is after both said I was right when last year I said food prices were going up. Pile up a few cans of corn? Migod, I must need valium or something. Next I'll be saying we'll be invaded by little green men from Mars.

Every time I tell them they need enough supplies to last them in case of a emergency or a disaster, Mom tells me she'll just grow vegetables in the back yard. So I ask her if she has any seed packets? Not a one, but she can always pick up a packet or two at Walmart. When I *headdesk* at her response, I get the 'teehee the Doomer is at it again' schtick from the pair of them.

Gah

Sat, 07/21/2012 - 19:46 | 2639447 francis_sawyer
francis_sawyer's picture

Cocaine is a hell of a drug...

~Rick James

Sat, 07/21/2012 - 20:40 | 2639521 Real Estate Geek
Real Estate Geek's picture

You won't be able to turn away your family when they show up.  So stockpile a bunch of salt, rice and pinto beans for them.  That's cheap & enough to subsist on.  The monotiny is their penalty for not listening to you.  You on the other hand can feast on the MRE's or MH or whatever.

Sat, 07/21/2012 - 20:49 | 2639531 francis_sawyer
francis_sawyer's picture

I'll offer them a jiggly bowl of the new government sponsored 'green jello'...

Sun, 07/22/2012 - 09:24 | 2640025 DanDaley
DanDaley's picture

Tell them to look up Quebec power outages (http://en.wikipedia.org/wiki/List_of_power_outages), but it probably won't make any difference.  Just squirrel away some basics somewhere that they don't know about it...like a friend's house.  Some people want to believe that the government -the big all-giving tittie- is always going to be there in times of trouble; that's just childish.

Sun, 07/22/2012 - 13:14 | 2640409 DosZap
DosZap's picture

bigkahuna

 Regular old back yard burger flippers must be on a nice tranquil world somewhere that I in a way envy-though in another way these people will probably get offed or something - so I feel sorry for them.

 

big,

they are living in DENIAL,and it ain't a river in Egypt.

They think given time, all this will pass, and think all things will go BACK to like they were.

They are Ostriches..

Sun, 07/22/2012 - 11:29 | 2640238 DosZap
DosZap's picture

When it fails to do that, there will be social unrest.

Well, they are fixing to make sure that most do not have the means to cuase major social unrest,as soon as Agenda 21 hits,it will either be accepted or start the major civil unrest.

Sat, 07/21/2012 - 16:58 | 2639234 disabledvet
disabledvet's picture

An exchange is a DATA AGGREGATOR. This is NOT some ABSTRACT CONSTRUCTION. There is MASSIVE technology built in "that basically runs itself" in the form of a "media company" and even more importantly "a telephone company." These "bits and bytes" are literally running computer programs "to determine outcomes through the most intensive and extensive retrieval and interpretation of data that can be created." this is an Arms Race that has already been won...and cannot be replicated (though perhaps self-replicated) anywhere else on the planet since it is done PUBLICLY and in the name of PRIVATE GAIN. You would be SHOCKED if you realized just how few "outcomes" actually exist once you get to the down and dirty of "figuring out how all this shit called life" shakes out. The Middle East is now discovering how little humans themselves are needed with this "thinking machine." You stand opposed to it in the form of short selling the equity space at your peril. It is a capital aggregator unlike anything ever seen in human history...with no signs of slowing down even if the entirety of the 50 states in the Union were to proceed to bankruptcy in the coming years if not months. It requires ONLY a "bottom" and after that "it's off the races." It can wake you up. It can put you to sleep. It can entertain you and make you laugh. It can endear you and make you cry. It can revolutionize you and make you revolt. it can distract you and create what appear to be accidents...but are anything but. What it can't do is "be turned off." Egypt tried..."take a look at that place." Just "not too close." It only asks for one thing...greenbacks...and it's getting them in such massive amounts one can see how Wall Street deluded themselves into thinking they could "turn water into wine" in the form of debt freedom for all via ever increasing home values. but this power (the power to steal your ideas) is a power still reserved for very few. so few in fact that unless and until this "new media" that is only beginning here...and hopefully only beginning...takes flight then "all opposed to reality" are to be sought out and eliminated. http://www.youtube.com/watch?v=Xs0K4ApWl4g
"there was outrage since it was presented in a news format thereby making people think it was real and causing a panic which resulted in people's death." On the good side "it assured Orson Welles' fame." Ah, "phucking with people's version of reality." Does America do it any other way?

Sat, 07/21/2012 - 17:00 | 2639235 MrTouchdown
MrTouchdown's picture

Well, there is a point at which inflation becomes deflationary as it chases people out of that particular currency's market. For example, in Zimbabwe nobody uses Zimbabwean dollars unless they absolutely have to. Thus, things are cheap - as defined by alternative currencies, particularly PMs.

Bernanke et al will either overinflate, pushing people out of dollars, or he will stop inflating and allow the deflation to happen. Either way - there ain't no stopping this train. Markets and goods are overpriced compared to what people are able and willing to pay. The markets will equilibrate no matter what bankers think they can do.

Sat, 07/21/2012 - 19:47 | 2639446 Fake Jim Quinn
Fake Jim Quinn's picture

Deflation is good for gold. As deflation mounts, central banks print money. Gold is the anti-print antidote and rises as debasement rises. Other hard assets less so because unlike gold, they are not money. They have industrial uses that drag them down as general levels of econimic trade fall.

You want to hold metals as follows

 

Gold: to keep your wealth constant

Iron: In your safe room/defense <I>, bar doors, etc.

Lead: To keep your safe <II> if all hell breaks loose and you're really in need of defense

 

Sat, 07/21/2012 - 18:05 | 2639320 DonGenaro
DonGenaro's picture

one thing that experience has taught me:
if the video has FN background music, then it will SUCK

Sat, 07/21/2012 - 18:50 | 2639383 I should be working
I should be working's picture

Yeah Harvey Dent, remember Dow 30000? Way to reinvent yourself, asshole. I guess if people watch he'll deliver. Panderer extraordinaire greed or fear take your pick.

Sat, 07/21/2012 - 20:28 | 2639499 cara leaf
cara leaf's picture

The next Ponzi is gold

 

Sat, 07/21/2012 - 22:40 | 2639679 engineertheeconomy
engineertheeconomy's picture

Give me head lice.

Sat, 07/21/2012 - 20:29 | 2639502 Chicago_cranium
Chicago_cranium's picture

The word Collapse should not be used. The author needs to learn more about Complex Systems, these hardly ever collapse abruptly. Everyone is waiting for the moment of collapse, this will not happen. Complex Systems reorganize, and readjust to a new state of stability, a new reality, it is happening now, it is a dynamic system. Imagine a complex system like a Pyramid made from Sand, it is stable, it is weak however like the paper economy we have. If you perturb this system, by moving a spec of sand, the system you think may collapse to the ground, but this does not happen. The system has some merit still, it has strong columns somewhere, it will look for support, perhaps 10% below the previous peak of the pyramid. Collapse is gradual, it is not an event where all factors will lead to complete destruction. This can only happen in Forced Systems, such as in the case of war, nuclear disaster, etc. even with war, many parts of the system will survive.

Sat, 07/21/2012 - 22:44 | 2639684 engineertheeconomy
engineertheeconomy's picture

T

R

O

L

L

Sat, 07/21/2012 - 22:57 | 2639700 i-dog
i-dog's picture

Wrong. When complex systems are distorted, they flip through a sudden "state change" into a new equilibrium (that cannot be predicted).

Sun, 07/22/2012 - 00:29 | 2639781 Lore
Lore's picture

Re: sand pyramids, I can tell you've never visited a beach.

Sat, 07/21/2012 - 20:32 | 2639506 cara leaf
cara leaf's picture

Next Ponzi is Gold

Keep your eye on the Exits

Sat, 07/21/2012 - 20:56 | 2639540 Real Estate Geek
Real Estate Geek's picture

Gold?  No.   

GLD?  Yes.

Sat, 07/21/2012 - 22:00 | 2639629 engineertheeconomy
engineertheeconomy's picture

Scribbles you are spot on. I don't get it about the down arrows. Only thing I can figure is that the Trolls login under several different names. Or there is only one really energetic troll and he is smoking meth.

Sat, 07/21/2012 - 16:36 | 2639152 Gringo Viejo
Gringo Viejo's picture

!

Sat, 07/21/2012 - 16:36 | 2639204 AldousHuxley
AldousHuxley's picture

preppers....part of 75% consumer crazies.....

 

instead of buying just 1 box of cereal, buy 2 years of worth NOW....says walmart.

 

how about learn to just eat less for starters.

 

 

Sat, 07/21/2012 - 17:07 | 2639246 bigkahuna
bigkahuna's picture

You have a good point - learn how to eat less. If you have ever gone hungry, you might understand why some of these people are stocking up on food. 

Sat, 07/21/2012 - 18:28 | 2639347 Matt
Matt's picture

Yeah, even if you eat a lot  = say 3000 calories, it isn't like you can just cut down to 1000 calories and continue doing anything productive for an extended period. The difference between eating too much and a healthy amount is generally a few hundred calories here and there (and eliminating calories from drinks, as that messes up your metabolism). There seems to be a persistant misconception that people who eat too much are generally eating several times as much food as they need. 

Sun, 07/22/2012 - 10:01 | 2640082 northerngirl
northerngirl's picture

When you do not have a home to cook your food in learning to eat less will be no problem.

Sat, 07/21/2012 - 16:04 | 2639153 TheSilverJournal
TheSilverJournal's picture

The big deflation already happened in 2008. There's not much room for deflation from here without the entire system collapsing because if asset prices fall now, banks won't have the funds to pay depositors.

Sat, 07/21/2012 - 16:12 | 2639162 MsCreant
MsCreant's picture

They don't now because of the fractional reserve lending system and the fact that assets are not marked to market.

Sat, 07/21/2012 - 16:23 | 2639184 TheSilverJournal
TheSilverJournal's picture

Sure they do. No depositors get denied their money right now.

Sat, 07/21/2012 - 16:25 | 2639186 MsCreant
MsCreant's picture

Not all of them. Not even most of them. What is the going ratio for reserves at your bank? 30/1? 

Sat, 07/21/2012 - 16:27 | 2639188 TheSilverJournal
TheSilverJournal's picture

NOBODY is getting denied their deposits. But if asset prices are allowed to fall too much, then ATMs will be spitting out blanks.

Sat, 07/21/2012 - 16:31 | 2639195 MsCreant
MsCreant's picture

If we all show up tomorrow, they are fucked. If even 2/30 showed up for all our money tomorrow, they are fucked. Fucked now. They are insolvent now.

Sat, 07/21/2012 - 16:38 | 2639208 TheSilverJournal
TheSilverJournal's picture

Right now, they are still able to pay depositors and life will go on as usual for most as long as depositors are able to withdraw their money.

I know what you're saying and the same argument could have been made any time over the last hundred years. The fractional reserve problem is especially acute now now only because of the low 10% reserve requirement, but the many lies throughout the system that make the actual reserves even lower. And it's the falling of the asset prices that will hit the banks and depositors in the face when assets that are now marked to unicorns and rainbows take a tumble, and I don't think it will take all that big of a tumble before depositors cash simply isn't there to be withdrawn...even if there's not a bank run.

Sat, 07/21/2012 - 17:09 | 2639251 disabledvet
disabledvet's picture

we have seen it in the form of "MF Global" and "PFG Best." These "banks" have had their bank run. Capital formation is proceeding apace however...and at massive levels in the form of "a collapsed price of something extremely useful." that would be cloud computing, solar power, natural gas. hence "a plant is build which creates things"...in the case of say natural we call "a chemical complex" which creates various "product" that form the basic building blocks of an industrial economy. if produced "cheaply" enough it gains a competitive advantage for concerns that are so massively capital intensive "they can only be built in one place." hence "depositors" in the form of "workers who are paid" and "capital that is created that cannot be replicated anywhere else on the planet" are "banked" in the form of "billions of dollars." provided the "banker isn't an idiot and thinks he's worth billions in losses" of course. for the record "i, disasbledvet feel that i am creating original content that cannot replicated elsewhere as well." one day i hope to paid for it so that i may help..."the bank"...is it fail? succeed? how about "do whatever."

Sat, 07/21/2012 - 17:33 | 2639282 TheSilverJournal
TheSilverJournal's picture

I hope, for your sake, that you're on something.

Sat, 07/21/2012 - 19:55 | 2639455 Schmuck Raker
Schmuck Raker's picture

And,"...cannot replicated elsewhere as well."

Sat, 07/21/2012 - 23:15 | 2639714 Jason_1sandal
Jason_1sandal's picture

I agree to a point. Although let's say you have $100,000 on deposit at your bank. Can you withdraw all $100,000 in cash at once ? I bank at a community bank and I'm not sure if they have that much cash on hand.

Sun, 07/22/2012 - 13:26 | 2640448 Citxmech
Citxmech's picture

Last time I made a "big" cash withdrawl at our bank, they couldn't even come up with $2k. We actually had to hit multiple branches.

Needless to say, we only keep enough in there to pay for monthly expenses with a buffer. So many signs out there if you pay attention.

Sun, 07/22/2012 - 15:31 | 2640737 robertocarlos
robertocarlos's picture

Don't panic! However, if you are going to panic, panic first.

Sun, 07/22/2012 - 01:55 | 2639855 Tom Servo
Tom Servo's picture

Had to log in to respond to this.  If you have a savings account or even a checking account with over a 10,000 balance, I challenge you to go into your local bank and step up to the teller with a 10k check made out to "cash", ask for it in all 100's with a smile.  You will likely be refused, or questioned, and have a suspicious activity report filed on your ass.  Get too many of them, and the po po's will show up at your house and will likely confiscate it (but i'm getting off track...).

 

With a majority of the banking being done in 1's and 0's form, it's easy to keep minimum of cash on hand and get away with it.  If there is a shock, ALL banks will be cashless in hours.  Then the fun begins....  I had to call in an order for 15k in 100's to take to an auto auction and was treated like i was stealing the money.  Then it dawned on me, the FRN's i have, really don't belong to me... then it made sense!

 

Sun, 07/22/2012 - 12:42 | 2640370 TheSilverJournal
TheSilverJournal's picture

I won't accept that challenge. Not that I don't think most banks have $10K on hand, but because why would I want to alert authorities any more than necessary. I could talk about land of the free...but I think ZH is way past that.

Mon, 07/23/2012 - 08:57 | 2642094 XitSam
XitSam's picture

Yes, a ZH reader that has $10,000 in a bank? Well, MDB_ maybe.

Sat, 07/21/2012 - 17:18 | 2639267 Doña K
Doña K's picture

The big money of institutions local governments and high worth individuals are with the TBTF banks and they will not ask for cash. So their exposure to withdrawls will be from middle class individuals only and it will take very many savers to brake those banks.

Sat, 07/21/2012 - 22:23 | 2639660 old naughty
old naughty's picture

...plus they still have the coppers loyal to them to control the "savers".

Sat, 07/21/2012 - 23:16 | 2639716 I should be working
I should be working's picture

What money, nobody I know has any money.

Sun, 07/22/2012 - 11:38 | 2640259 DosZap
DosZap's picture

If we all show up tomorrow, they are fucked. If even 2/30 showed up for all our money tomorrow, they are fucked. Fucked now. They are insolvent now.

Not if they release those multiple billions/trillions sitting in Fed backed banks  taking in a 0.25 basis point in interest,for Free.

Of course then that would cause hyperinflation.

Sat, 07/21/2012 - 16:39 | 2639209 GMadScientist
GMadScientist's picture

You have a surprisingly stupid view of the modern financial universe.

ATMs will never spit blanks; what comes out of them may have diminished purchasing power, but the tokens themselves will never be the problem.

Did Rome run out of coins?!

Sat, 07/21/2012 - 16:46 | 2639215 TheSilverJournal
TheSilverJournal's picture

Thanks for making my point.

The spitting out blanks was a figure of speech. If the banks want to be able to pay depositors, then they are going to have to pump a load of money into the system very soon, which is inflationary, not deflationary.

Sat, 07/21/2012 - 18:38 | 2639364 GMadScientist
GMadScientist's picture

An erroneous statement is not a point and there's plenty of debasement headroom left....the frogs don't even know it's a pot.

Sun, 07/22/2012 - 11:43 | 2640271 TheSilverJournal
TheSilverJournal's picture

I'm not going go into some lame converstation about erroneous statments and points. But you did make my point. Thank you.

"There's plenty of debasement headroom left."

What does that even mean? What is debasement headroom? And there's plenty left in order to do what?

"The frogs don't even know it's a pot."

Again, how is that a model of the economy? It doesn't matter what the "frogs" know, what matters is if the banks have enough cash to pay out when depositors want to withdraw their money. And not because of a bank run, but because of falling asset prices (certainly a bank run won't help either).

You might get "up" votes by making short snarky comments that put people down, but it's certainly not helping to progress any debate.

Sun, 07/22/2012 - 13:37 | 2640473 Citxmech
Citxmech's picture

Printing enough fiat paper to redeem existing electronic currency may actually be inflationary IF it means that enough of that QE I-II "money" is finally being pumped into the consumer economy and the velocity of exchange is increasing.  One of the only reasons we don't have even more inflation than we're seeing right now is that most QE is locked into corporate/banking balance sheets.

Having said that, bank runs are still possible on the local level because there isn't close to enough paper fiat to back even consumer deposits.

Sat, 07/21/2012 - 18:45 | 2639373 Matt
Matt's picture

Not neccessarily. If the Fed takes garbage assets in exchange for stacks of paper money, they should be able to provide enough paper without actually increasing the total $ amount of all assets in circulation.

Right now, there is no way the ATM machines plus the tellers have anywhere near enough pieces of paper to cover the digital numbers they owe people.

Sun, 07/22/2012 - 10:47 | 2640169 agent default
agent default's picture

They just wire the digital numbers to the FED and the FED send them paper cash.  A bank run does not crash a bank because it runs out of stacks of paper money.  A bank run, and in fact the most vicious type of bank run is done by withdrawing electronic money, because it can be done at a very high rate.

Sun, 07/22/2012 - 12:24 | 2640340 TheSilverJournal
TheSilverJournal's picture

The goal of the Fed is to increase asset prices and the total amount of assets. Falling asset prices is what the Fed doesn't want.

But creating money to buy assets is exactly what the Fed will end up doing if it wants to try to keep this paper ponzi going as long as possible. It's already bought a bunch of "garbage assets" like Treasuries and MBSs, and it will have to continue to do so. The Fed's then  going to have to move on to muni bonds in order to keep those yields from rising, and even get into the corporate bond market and who knows from there. It has a printing press so it can literally print any amount of money to buy anything that it wants.

 

Sun, 07/22/2012 - 12:17 | 2640331 Raging Debate
Raging Debate's picture

Recapitalization happened the last four years. As Geithner stated "we saved the banking system but lost the American people." More stagflation for several more years will be the outcome. $3.50 gas is now the floor.

It won't be collapse but it sure is painful and mindless toiling, little opportunity. And nobody going to jail for massive crimes, no pols brought to court of public opinion even for malfeasance. What a jip.

Sun, 07/22/2012 - 12:30 | 2640350 TheSilverJournal
TheSilverJournal's picture

I doubt the US can stagflate for several more years. The US is beyond broke and the world is loaning to a broke country at negative real interest rates. Once yields rise, it's all over.

Sat, 07/21/2012 - 17:00 | 2639233 LMAOLORI
LMAOLORI's picture

 

If there was a bank run they wouldn't this is from last year so it's probably improved a bit since the Fed has been recapitalizing the banks via printing but I still doubt they have near enough to cover if a ran began and as for the govt. full faith & credit well see the second article.

 

Collective financial insanity – FDIC backing $5.4 trillion in total deposits on pure faith – US banking operating with negative deposit insurance fund and massive debt leverage. The greatest Ponzi scheme known in the financial world.

 

How Safe is My FDIC-Insured Bank Account?


We have deflation now in goods we don't need, i.e., flat screens, toasters, etc. but we also have INFLATION on the things we really need to live like food, heating fuel, etc. and that is rising even more.

 

Sat, 07/21/2012 - 17:13 | 2639262 disabledvet
disabledvet's picture

not food. not fuel. you could have actual SHORTAGES however. "once the evil doers of Wall Street are eliminated" of course. "Profit inflation" appears to have slowed however. On the other hand https://www.google.com/finance?client=ob&q=NASDAQ:AMZN

Sat, 07/21/2012 - 22:13 | 2639645 Joe Sixpack
Joe Sixpack's picture

I somewhat question inflation in fuel. Sure in fiat dollars. But in silver, I think fuel is actually a little cheaper than in the past. A gallon of gas cost about one quarter at some point in the 1960s (pre 1954). One quarter is 5.625 g silver. (5.625/31.103)*29 =  $5.24 for one silver quarter worth of silver. Gas ias about $3.75 in California, and less in other parts of the US. 3.75/5.64 = 71.6%.

Sun, 07/22/2012 - 12:00 | 2640306 DosZap
DosZap's picture

Accounts at different banks are insured separately. One person could keep $100,000 in accounts at two separate banks and be insured for a total of $200,000. Also, accounts in different ownerships (such as beneficial ownership, trusts, and joint accounts) can be considered separately for the $100,000 insurance limit. The Federal Deposit Insurance Reform Act raised the amount of insurance for an Individual Retirement Account to $250,000. 

If I am not mistaken this was changed in '08, each account is insured to 200k,and joint accounts are also doubled.Or did I read the sticker incorrectly?.

 

Sun, 07/22/2012 - 00:32 | 2639786 WSMassiv
WSMassiv's picture

Try cashing a couple thousand in checks, you need to get the managers approval!... lol... they don't have the physical bills for sure...

Sat, 07/21/2012 - 16:17 | 2639169 ATM
ATM's picture

Until the Fed gives them pallets of fresh, crisp Benjamins for free. That's the point.

Sat, 07/21/2012 - 16:21 | 2639179 TheSilverJournal
TheSilverJournal's picture

Well, there's not a whole lot of deflation that can occur until then.

Sat, 07/21/2012 - 16:05 | 2639155 rsnoble
rsnoble's picture

Oh cool. So we're fucked from here on out. Time for a beer.

Sun, 07/22/2012 - 02:05 | 2639861 DeltaDawn
DeltaDawn's picture

If only we could all sit around and drink together! Kindred spirits, away from all those ostrich friends and family!

Sat, 07/21/2012 - 16:07 | 2639156 DoChenRollingBearing
DoChenRollingBearing's picture

Awesome video.

+ $400...  or will that then be + $55,000?

Sat, 07/21/2012 - 16:07 | 2639157 Raymond Reason
Raymond Reason's picture

Deflationary collapse followed by currency crisis.  Sounds plausible. 

Sat, 07/21/2012 - 16:18 | 2639173 tmosley
tmosley's picture

Funny because they claim that hyperinflation won't happen, but that is exactly what hyperinflation is.

Sat, 07/21/2012 - 16:20 | 2639175 MsCreant
MsCreant's picture

I heard that too.

Sat, 07/21/2012 - 16:34 | 2639200 worbsid
worbsid's picture

This was/is the position of The Automatic Earth IIRC. 

Sat, 07/21/2012 - 17:09 | 2639253 Dr. Engali
Dr. Engali's picture

That's the way I see it playing out. Kind of like a dying star. It collapses on itself then explodes.

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