The Destruction of the US Dollar
POSTED BY: JaynezTown
UPDATED: Thursday, October 16, 2008 00:43
VIEWED: 21107
PAGE 15 of 17
Quote:
Originally posted by kaneman:
Doesn't matter if it implodes. The FED can just keep on printing the stuff like it grows on trees(oops it does).....I have a wheel-barrel
Is that anything like a wheelbarrow?
Mike
"I supported Bush in 2000 and 2004 and intellegence[sic] had very little to do with that decision." - Hero, Real World Event Discussions
I can't help the sinking feeling that my country is now being run by people who read "1984" not as a cautionary tale, but rather as an instruction manual. - Michael Mock
The Myrmidons were an ancient nation of very brave and skilled warriors as described in Homer's Iliad, and were commanded by Achilles. - Wikipedia
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Jeebus Cripes, O2TB - that's some chilling shit right there!
About all I can say at this point is, "I *HOPE* it's wrong."
Even as I fear it's probably not only right, but understated.
Signs read "Rough Road Ahead"...
Mike
"I supported Bush in 2000 and 2004 and intellegence[sic] had very little to do with that decision." - Hero, Real World Event Discussions
I can't help the sinking feeling that my country is now being run by people who read "1984" not as a cautionary tale, but rather as an instruction manual. - Michael Mock
The Myrmidons were an ancient nation of very brave and skilled warriors as described in Homer's Iliad, and were commanded by Achilles. - Wikipedia
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Quote:
Originally posted by Kwicko:
...About all I can say at this point is, "I *HOPE* it's wrong."
Even as I fear it's probably not only right, but understated.
Signs read "Rough Road Ahead"...
Mike
I get a lot of this sort of information , from a number of different sources , and it's really too much to keep up with...But , this is quite the fair summary of all the intel that I've been receiving from the various quarters...
Of course , we all should HOPE that it's all wrong...
...But , it's not .
Folk should oughta move quietly to protect their assets as best they can...
The *relative* rebound of the U.S. Federal Reserve Note against other currencies at the present time is only due to the fact that the foreign notes are doing even worse , comparatively speaking...
I hate to say it , but I've been following all the indicators and trends a long while now , and have to agree with
the above-linked analysis for the most part...
In Australia , folk are having their homes foreclosed for being as little as 1000 Au in arrears...
The credit crunch is global , and the contagion is accelerating as it spreads...
I do wish there was something very heartening to pass on , but at the moment , there's not much...
Rosy specs will have to suffice for folk who are not seeing things the same way...
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Like Mike said , a rough road ahead :
http://www.informationclearinghouse.info/article20458.htm
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Buser's memo to next U.S. Prez
http://ccwawebintern.livejournal.com/9908.html
Quote:
What Can US Policy Makers do to Prevent a Catastrophic Melt Down?
None of the following alternative policies will provide a painless solution to a serious economic problem. Nevertheless, as we are repeatedly reminded with natural disasters, such as hurricane Katrina, ignoring a problem only serves to magnify the ultimate damage. Hence I hope that you will at least consider the following alternatives.
Policy Alternative #1
The federal government must dramatically reduce the size of the federal deficit. Only then will it be possible to relieve pressures that have built up during the past decade. As tax payers, we all appreciate the reductions in federal income tax rates that were enacted early in this decade. However, when combined with two long and expensive wars, the result was a dramatic reversal of federal budget surpluses that had been established in the late 1990s. Federal budget deficits stimulate the demand for goods and services in general. When combined with a strong US dollar and increasingly liberal trade policies, the record setting US budget deficits of this decade have had an especially strong impact on US imports.
Unlike prior budget deficits, which were largely financed domestically, US budget deficits of the current decade have been largely financed by the rest of the world. Until recently, the external financing of US budget deficits effectively shielded US consumers from the financial costs of war. The traditional tradeoff of guns versus butter was seemingly replaced by a choice of more guns along with more butter. Unfortunately, as is the case with any public or private program that is funded by a rapidly increasing debt, the illusion of a free lunch is short lived. Eventually lenders seek repayment with interest. The US has entered the early stage of the repayment phase of its war-time borrowing program. If policy makers continue to ignore the inevitable, the economic consequences will be severe....
...
HOW TO CONCEAL MASSIVE ECONOMIC COLLAPSE
http://www.webofdebt.com/articles/wag_the_dog.php
Quote:
“[T]he banking problems in the United States continue to mount, while the federal government’s deficit continues to soar out of control. . . . So what happened to cause the dollar to rally over the past three weeks? In a word, intervention. Central banks have propped up the dollar, and here’s the proof.
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Quote:
Originally posted by JaynezTown:
HOW TO CONCEAL MASSIVE ECONOMIC COLLAPSE
http://www.webofdebt.com/articles/wag_the_dog.phpQuote:
“[T]he banking problems in the United States continue to mount, while the federal government’s deficit continues to soar out of control. . . . So what happened to cause the dollar to rally over the past three weeks? In a word, intervention. Central banks have propped up the dollar, and here’s the proof.
Thanks for this thread , Jayneztown , and for yet another great post in it !
The 'web-of-debt' website is very good , and I like that she has made some chapters available from her book...It's good reading , and more folk should look into it...
Again , thanks for everything , and particular thanks for including the great links...
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Quote:
Originally posted by Shinygoodguy:
This is creepy!
Not too long ago I saw this documentary that predicted this very scenario. Ooooh, it gives me the chills.
Shiny! Let's be bad guys!
and the bad news just keeps coming
US High-Grade Bond Market Lower On Financial Co Woes, Weak Data
http://money.cnn.com/news/newsfeeds/articles/djf500/200808191215DOWJON
ESDJONLINE000331_FORTUNE5.htm
Dollar slides on higher US inflation, oil gain
http://www.forbes.com/feeds/ap/2008/08/19/ap5338276.html
Freddie Mac draws demand for debt at higher yield
http://www.guardian.co.uk/business/feedarticle/7737143
Crude Oil Advances on Weaker Dollar, Gasoline Supply Forecast
http://www.bloomberg.com/apps/news?pid=20601081&sid=a3J1Kh9WmPG8&refer
=australia
The US economy is in a funk
http://www.atimes.com/atimes/Global_Economy/JH19Dj08.html
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All good folk oughta check this out...
It's a new documentary film that got significant notice at Sundance this year :
http://www.iousathemovie.com/about
" It's An Inconvenient Truth for the Economy . " --Reuters
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The next credit crunchQuote:
So much for the myth of the robust economy under Bush...
Fortune Magazine -- We made it through the bursting of the Internet bubble and now the bursting of the real estate bubble. Next we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble.
That conclusion comes from the latest data on credit card debt. It's growing fast, but the problem is bigger than that - and to understand what it means, we have to take a few steps back.
For the past several years, the average inflation-adjusted total pay of American workers hasn't been increasing.
Quote:Yep, the economy's on fire alright.
... Even with stagnant real incomes, we can always live a little better every year through borrowing and pretending that our living standard is still rising, just as it was for decades. So the Great Bull Market made us feel rich, and we felt justified in saving less and borrowing - and spending - more.
After stocks collapsed, home prices took off, making us feel rich all over again. So we continued saving less and spending more, creating the illusion that our living standard was still rising. In 2005 our personal savings rate went negative, but even that didn't slow us down, because our homes were still appreciating - and rising home values meant that household net worths weren't declining. (Don't be fooled by that saving-rate spike in this year's second quarter; it was probably a one-time event resulting from the federal stimulus payments.)
Of course, we don't hear those assurances anymore. Stocks are back where they were eight years ago, and home prices are where they were five years ago.
Quote:http://money.cnn.com/2008/08/18/news/economy/Colvin_next_credit_crunch
... That's where the credit card reports come in. Last year, just as the subprime crisis happened, credit card debt took off. The home-equity ATM had been shut down, so people turned to the last source of easy money they had left, the most expensive debt on the menu, credit card borrowing. Since credit card debt has been growing much faster than the economy - more than 8% in last year's third and fourth quarters and over 7% in May (the most recent month reported)- people are apparently using it as a substitute for income. Thus, for the past year or so we have still maintained the standard-of-living illusion. But a big crunch is coming - and here's why. Credit card debt, like mortgage debt, gets bundled, securitized, and sold off by banks. Citigroup (C, Fortune 500), one of America's largest credit card lenders, just reported that it lost $176 million in the second quarter through securitizing such debt. That happens when the buyers of those securities observe rising delinquency rates and rising interest rates, and decide the debt is worth less than Citi thought. More generally, the amount of credit card debt that is securitized nationwide has plunged by more than half in the past five months because it's getting riskier. That means credit card issuers will be charging customers higher interest rates, and since the banks can't offload as much of the debt as before, they'll have less money to lend to cardholders.
.fortune/index.htm?
And this is what happens when you don't recycle cash down to the worker-bees: You have to maintain "the economy" through debt and inflation. And that is the problem with profit: it concentrates capital to the point where it chokes the economy.
Where is Fletch2 when you want to say "I told you so"?
---------------------------------
Any idea, no matter how much you may agree with it, can be radicalized and employed as an excuse for violence. There is no such thing as a righteous or untouchable philosophy, and when you start thinking that there is, you have become an extremist.- Finn Mac Cumhal
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Quote:
Originally posted by SignyM:
The next credit crunchQuote:
Fortune Magazine -- We made it through the bursting of the Internet bubble and now the bursting of the real estate bubble. Next we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble.
That conclusion comes from the latest data on credit card debt. It's growing fast, but the problem is bigger than that - and to understand what it means, we have to take a few steps back.
For the past several years, the average inflation-adjusted total pay of American workers hasn't been increasing.
So much for the myth of the robust economy under Bush...
After stocks collapsed, home prices took off, making us feel rich all over again. So we continued saving less and spending more, creating the illusion that our living standard was still rising. In 2005 our personal savings rate went negative, but even that didn't slow us down, because our homes were still appreciating - and rising home values meant that household net worths weren't declining. (Don't be fooled by that saving-rate spike in this year's second quarter; it was probably a one-time event resulting from the federal stimulus payments.)...
...And this is what happens when you don't recycle cash down to the worker-bees: You have to maintain "the economy" through debt and inflation. And that is the problem with profit: it concentrates capital to the point where it chokes the economy .
More to the point , this is what happens when ordinary folk don't hold a currency of intrinsic value...And , when the mission of the Central Bank (Federal Reserve) is to create a chronic debt cycle , chronic inflation , and facilitate the extraction of wealth from the people...
The mission of its evil twin , the IRS , is to facilitate the interest payments on the debt that the Federal Reserve enables...
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