So, what now ? Is there any other way to reduce the debt ? If it keeps increasing, isn't the Great America which everyone dreamt of coming to, well, over then ?
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Global Financial Crisis (3 Viewers)
- Thread starter Dostoevsky
- Start date
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The only way to reduce the debt is to cut spending and start saving, but the government doesn't want to do that. They think the best way to fight fires is to spray them with gasoline.
Once that line of credit is shut off from the rest of the world, the government will have to decrease in size immediately or else it will collapse. At this rate, we could very well collapse because they are doing nothing to guard against a possible default. They're creating a disaster of epic proportions.
Once that line of credit is shut off from the rest of the world, the government will have to decrease in size immediately or else it will collapse. At this rate, we could very well collapse because they are doing nothing to guard against a possible default. They're creating a disaster of epic proportions.
If something like that happens, ie the credit line shuts off and the bond market blows up, the government probably couldn't even fund martial law. The first area of the government that would be hit is probably the military since that needs cash flow on a daily basis. Depending on what happens, it could become chaos in the streets with massive civil unrest. That's what financial expert Marc Faber believes will happen within 10 years because the debt bubble will burst.
In that event, I'd assume that state governments would take control and be their own separate entity.
In that event, I'd assume that state governments would take control and be their own separate entity.
Interesting article, shortened a bit.
It's Going To Implode: Buy Physical Gold - NOW
Evidence seems to be mounting that we are headed towards some sort of implosion in the paper Gold market, and perhaps the currency/bond markets in general. Let’s take a look:
....
Wall Street and the US Dollar are being increasingly marginalized at the global level with China having instructed its companies to renege on Wall Street’s derivative contracts last year; Russia, Middle-East and China setting up their regional currency blocs; Germany calling for an end to the CDS casino and the recent exclusion of Wall Street banks from European Government bond market. For obvious reasons, none of this is getting much play in the lapdog US media.
Physical Gold in your personal possession is the only thing that will survive the coming financial Armageddon. What we are witnessing right now is nothing but the calm before the storm. Keen observers are hearing rumblings beneath the ground signaling an imminent volcanic eruption. Once it blows it will be too late to take action. Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal. The window of opportunity to convert your casino chips (fiat money) into real money, i.e. Gold, is getting smaller by the hour. He who panics first, panics best.
http://www.zerohedge.com/article/its-going-implode-buy-physical-gold-now
It's Going To Implode: Buy Physical Gold - NOW
Evidence seems to be mounting that we are headed towards some sort of implosion in the paper Gold market, and perhaps the currency/bond markets in general. Let’s take a look:
....
Wall Street and the US Dollar are being increasingly marginalized at the global level with China having instructed its companies to renege on Wall Street’s derivative contracts last year; Russia, Middle-East and China setting up their regional currency blocs; Germany calling for an end to the CDS casino and the recent exclusion of Wall Street banks from European Government bond market. For obvious reasons, none of this is getting much play in the lapdog US media.
Physical Gold in your personal possession is the only thing that will survive the coming financial Armageddon. What we are witnessing right now is nothing but the calm before the storm. Keen observers are hearing rumblings beneath the ground signaling an imminent volcanic eruption. Once it blows it will be too late to take action. Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal. The window of opportunity to convert your casino chips (fiat money) into real money, i.e. Gold, is getting smaller by the hour. He who panics first, panics best.
http://www.zerohedge.com/article/its-going-implode-buy-physical-gold-now
The media and politicians claim the recession is over and we are in the midst of a "jobless recovery". They generally think we are back on the path of economic prosperity. Wall Street also believes this is the case.
To the folks on Main Street, however, not much has changed and some are not as optimistic. There is still a ton of pain out there that will not be relieved any time soon.
But this is Keynesian economics. Throw aside facts and use hopes and wishes to spur on economic growth, holding the hand of the can-do-no-wrong government. Claim matters are better than they are to fool people into buying that the recovery is real and try to spur on growth that way. Sadly, though, it increases problems and makes matters worse, ie folks going into more debt because they think they can manage it under the supposed "improving economy." It's bullshit.
To the folks on Main Street, however, not much has changed and some are not as optimistic. There is still a ton of pain out there that will not be relieved any time soon.
But this is Keynesian economics. Throw aside facts and use hopes and wishes to spur on economic growth, holding the hand of the can-do-no-wrong government. Claim matters are better than they are to fool people into buying that the recovery is real and try to spur on growth that way. Sadly, though, it increases problems and makes matters worse, ie folks going into more debt because they think they can manage it under the supposed "improving economy." It's bullshit.
If the economy was really improving, you'd see a company like Caterpillar having year-over-year sales increases in several markets. But no, they are seeing retail sales of machines declining year-over-year, with a number of -20% y/y this past February. These are horrible numbers. There isn't a recovery.
Caterpillar Inc Reports 3 month dealer statistics;
Dec-Feb sales - filing
- Retail Sales of Machines:
Feb.10 Jan.10 Dec.09
Asia/Pacific DOWN 2% UP 1% DOWN 12%
EAME* DOWN 22% DOWN 35% DOWN 41%
Latin America DOWN 20% DOWN 15% DOWN 24%
ROW* DOWN 15% DOWN 19% DOWN 28%
North America DOWN 30% DOWN 40% DOWN 46%
World DOWN 20% DOWN 27% DOWN 35%
Sales of Reciporcating & Turbine Engines
to Retail Users & OEMS by Business Sector
Feb.10 Jan.10 Dec.09
Electric Power DOWN 26% DOWN 27% DOWN 27%
Industrial DOWN 15% DOWN 22% DOWN 44%
Marine DOWN 23% DOWN 18% DOWN 29%
Petroleum DOWN 47% DOWN 46% DOWN 46%
Total DOWN 33% DOWN 33% DOWN 36%
Caterpillar Inc Reports 3 month dealer statistics;
Dec-Feb sales - filing
- Retail Sales of Machines:
Feb.10 Jan.10 Dec.09
Asia/Pacific DOWN 2% UP 1% DOWN 12%
EAME* DOWN 22% DOWN 35% DOWN 41%
Latin America DOWN 20% DOWN 15% DOWN 24%
ROW* DOWN 15% DOWN 19% DOWN 28%
North America DOWN 30% DOWN 40% DOWN 46%
World DOWN 20% DOWN 27% DOWN 35%
Sales of Reciporcating & Turbine Engines
to Retail Users & OEMS by Business Sector
Feb.10 Jan.10 Dec.09
Electric Power DOWN 26% DOWN 27% DOWN 27%
Industrial DOWN 15% DOWN 22% DOWN 44%
Marine DOWN 23% DOWN 18% DOWN 29%
Petroleum DOWN 47% DOWN 46% DOWN 46%
Total DOWN 33% DOWN 33% DOWN 36%
What? Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and all sorts of other crap. They deal with massive machinery that not too many other companies produce, and it is quality stuff. It's not like it's an investment bank here...
You wouldn't see such a massive hit in their numbers if there was a recovery, especially in construction.
You wouldn't see such a massive hit in their numbers if there was a recovery, especially in construction.