USA was 3 hrs away from Economic, Political Collapse... last Sept.

POSTED BY: pizmobeach
UPDATED: Tuesday, August 4, 2026 11:44
VIEWED: 42658
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PIZMOBEACH

Wednesday, February 11, 2009 8:43 PM

Not to go all PirateNews on people... but I believe this to be completely true. It also helps inform the actions of our most recent Billion Dollar spending presidents - that look in Obama's eyes isn't "I'm the Man now" it's, "holy sh*t, I'm the man now." As he mentioned in his press conference, he didn't come into office hoping he could find ways to spend $800 billion.

http://www.dailykos.com/storyonly/2009/2/9/234340/6189/142/695504

"According to Rep. Paul Kanjorski (D) (PA-11), in mid-September of 2008, the United States of America came just three hours away from the collapse of the entire economy. In a span of 2 hours, $550 billion was drawn out of money market accounts in an electronic run on the banks.

Rep. Kanjorski: "It would have been the end of our economic system and our political system as we know it."

I was there when the secretary and the chairman of the Federal Reserve came those days and talked to members of Congress about what was going on... Here's the facts. We don't even talk about these things.

On Thursday, at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two.

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic and there. And that's what actually happened.

If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it."

A related comment:

"Representative Sherman later revealed that members were warned that Martial Law would result if the $700 bailout plan was not passed"

SIGNYM

Wednesday, February 11, 2009 8:59 PM

Yes, the monetary system was in panic mode. And I don't mean that fluttery-feeling-in-your-tummy-before-your-first-prom kind kind of panic. I mean the "run on the bank" kind of panic, when traders (or their software) start crowding the teller windows to get-their-money-out-first.

I don't think people realized how very close we were to "the end of the world as we know it". And I don't think that people realize NOW how very close we are to an economic death spiral (as opposed to a financial one). Economists who predicted this fiasco- Roubini, Krugman- are pointing and gibbering at what they see coming down the pike. Meanwhile, Republicans fiddle that same old tune Money for the Rich while Rome burns.

If I believed in hell I would wish for them to rot in it.

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It's the end of the world as we know it, and I feel fine.

RUE

Wednesday, February 11, 2009 9:04 PM

I knew about it. In my small way, I was part of it - taking my money out of the banks. I was going to get mine first, before others caught on - just in case.

And yes, we're still on the tracks, and the train is still coming.

***************************************************************

Silence is consent.

PIZMOBEACH

Wednesday, February 11, 2009 9:15 PM

Quote:
Originally posted by rue:
I knew about it. In my small way, I was part of it - taking my money out of the banks. I was going to get mine first, before others caught on - just in case.

Well thx for that... that was probably the last 50 bucks that tipped the scales.

And now that you're flush and it's in your hands and not the bank's, you may want to consider spending some on a way to protect it... like a lightweight, auto load shotgun. I'm sure there are plenty on the boards that could help you pick one out.

Fwiw - and this is more of a question for O2TB and others of his ilk, but I don't think paper would be worth much in the event of the scenario mentioned above.

JAYNEZTOWN

Wednesday, February 11, 2009 9:18 PM

Quote:
Originally posted by pizmobeach:

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide.

The Fed is a disaster, not only have they blown 700 Billion, campaigned to get Obama's 800 Billion stimulus. they now admit to blowing another $105 Billion which basically had no effect on the system whatsoever

I laugh at your economic apocalypse
http://lolfed.com/

RUE

Wednesday, February 11, 2009 9:24 PM

"... I don't think paper would be worth much in the event of the scenario mentioned above... "

SignyM posted a very long discussion on which way an economic collapse can go - and it's either inflationary or deflationary. For various reasons that made a lot of sense to me, she predicted a deflationary scenario. In that case, you'd really want to have cash, b/c cash will be far more valuable than goods - even gold. The downside to having goods in a deflationary scenario is that you'd really like to have that cash you spent to buy those goods, rather than those goods.

As for the money I pulled out of the bank - it's in a ahem SAFE place not at home.

***************************************************************

Silence is consent.

SIGNYM

Wednesday, February 11, 2009 9:29 PM

Quote:
The Fed is a disaster, not only have they blown 700 Billion, campaigned to get Obama's 800 Billion stimulus. they now admit to blowing another $105 Billion which basically had no effect on the system whatsoever

It kept the system from collpasing. It's not the Fed or the gummint which is the disaster, it's the system. The Fed and the gummint are just trying to keep it alive. The system, BTW, is capitalism.

Personally, I think we should just let it go down the toilet since it's obviously not self-sustaining.

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It's the end of the world as we know it, and I feel fine.

WULFENSTAR

Wednesday, February 11, 2009 9:32 PM

And replacce it with what, sweetheart?

SIGNYM

Wednesday, February 11, 2009 9:33 PM

Whatever develops.

There are peeps here who think that gummint is the root of all evil. So if capitalism blows itself up every several decades and the gummint isn't the answer either then who the frak cares what comes next?

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It's the end of the world as we know it, and I feel fine.

RUE

Wednesday, February 11, 2009 9:36 PM

Many 'socialist' economies seem to be doing relatively well, even considering the global economy has been pulled down by US-generated chaos.

***************************************************************

Silence is consent.

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