Global Financial Crisis (8 Viewers)
- Thread starter Dostoevsky
- Start date
OP
Ho ho ho.
After Serbia declined like 3 times that they aren't in any crisis and how we're doing what they now say that we're actually one step from deep Economic crisis.
Our loan is so huge that it's actually 78% of our GNP. In other words, hitting 80% debt of your GNP means that your country is declaring it's bankrupt. Like I said, I expect crisis to hit us in 2012 very hard...so hard that people don't know it's going to be that bad.
After Serbia declined like 3 times that they aren't in any crisis and how we're doing what they now say that we're actually one step from deep Economic crisis.
Our loan is so huge that it's actually 78% of our GNP. In other words, hitting 80% debt of your GNP means that your country is declaring it's bankrupt. Like I said, I expect crisis to hit us in 2012 very hard...so hard that people don't know it's going to be that bad.
Central bankers just don't get it, do ya. The Japs cut rates and started another round of quantitive easing, and it worked for about two hours until their currency started to appreciate again. Usually this ploy works for about two days, but they couldn't even muster a single day of a positive USD/JPY. 
I am becoming far more bearish on the US economy than I was just a year ago. Back then, I was relatively bearish. Now I have absolutely zero hope that this nation can avoid an all-out depression worse than that of the 30's.
We not only face devastating fundamentals in the economy such as the unwillingness to clear bad debts from the system and create a sustainable productive capacity, but we also face in-your-face corruption in all levels of the government and the economy. From large banks foreclosing on properties they had no legal authority to foreclose upon, to the derivatives mess where financial institutions sold short their own mortgage products on the open market AND THEN were bailed out by the federal government, there is seriously no end to this mess. All of these shenanigans are unlawful, under acts like RICO and the like. But the law is not upheld. And as such, just like all criminal activity, it will eventually face death by its own doing.
If the fundamentals of the US economy are not enough to create the Greatest Depression, then surely the massive fraud between Wall Street and Washington will destroy the country. The world economy is nothing more than one major Ponzi scheme consisting of several minor Ponzi schemes that are large enough to blow up national economies. A few consist of:
-Zero Interest Rate Policy by the Federal Reserve where major financial institutions can borrow at near zero rates from the FED, turn around and buy US Treasuries with the capital, and net the spread between the two while debasing the currency. This policy ONLY benefits the banks while destroying saving and capital formation, or in other words, shit that allows an economy to GROW.
-Fraudulent accounting where bad assets are placed OFF the balance sheet, sponsored by the federal government, in the hopes of protecting the "Too Big too Fail" clan. Large banks like Bank of America hide all the toxic mortgage crap so that their books are not exposed. This isn't really legal, but they get away with it because the Obama administration allows them to.
-Creating a carry trade between the US Dollar and US Equities so that both have a correlation of negative one, creating a scenario where the appreciation of stocks like Bank of America, Wells Fargo, Citi Group, et cetera, depends solely on the depreciation of the US Dollar. But this is true for all asset classes, especially the commodity producers. Dollar down, crude, crops, steel, and other stuff up. All this means is that the middle class suffer while the CEO's of corporations gain a little support to their operations.
All of this stuff is government sponsored, Keynesian approved, and demanded at the behest of the major banksters on Wall Street. Hank Paulson, Timmy Geithner, that asshat Larry Summers, and the rest of the pigmen.
Even all that is enough to wreck an economy. But instead, we still have near-zero productive capacity, we continue to increase the debt-to-GDP ratio, we still blow ALL of the government's tax revenue on ENTITLEMENTS alone, and we've yet to address the 90+% of the debasement of our currency since 1913. If we are blowing our entire tax revenue on programs like unemployment benefits and social security, how on Earth can we keep borrowing to sustain other programs like national defense?
Easy answer: WE CAN'T, or else we default. WHY? Because the only way for the government to spend more is to "Quantitive Ease", meaning debasing the currency further, which means causing a capital flight from the United States in which interest rates rise and creditors finally realize there is no chance to repay our debts.
IT IS INEVITABLE if this continues, simply because of MATHS.
The fact that nobody, and I mean NOBODY in public office and the general public wants to address these issues is why we are screwed. Everybody wants a free lunch or to take part in a Ponzi scheme. But as we all know, neither can exist in a sustainable economy.
We not only face devastating fundamentals in the economy such as the unwillingness to clear bad debts from the system and create a sustainable productive capacity, but we also face in-your-face corruption in all levels of the government and the economy. From large banks foreclosing on properties they had no legal authority to foreclose upon, to the derivatives mess where financial institutions sold short their own mortgage products on the open market AND THEN were bailed out by the federal government, there is seriously no end to this mess. All of these shenanigans are unlawful, under acts like RICO and the like. But the law is not upheld. And as such, just like all criminal activity, it will eventually face death by its own doing.
If the fundamentals of the US economy are not enough to create the Greatest Depression, then surely the massive fraud between Wall Street and Washington will destroy the country. The world economy is nothing more than one major Ponzi scheme consisting of several minor Ponzi schemes that are large enough to blow up national economies. A few consist of:
-Zero Interest Rate Policy by the Federal Reserve where major financial institutions can borrow at near zero rates from the FED, turn around and buy US Treasuries with the capital, and net the spread between the two while debasing the currency. This policy ONLY benefits the banks while destroying saving and capital formation, or in other words, shit that allows an economy to GROW.
-Fraudulent accounting where bad assets are placed OFF the balance sheet, sponsored by the federal government, in the hopes of protecting the "Too Big too Fail" clan. Large banks like Bank of America hide all the toxic mortgage crap so that their books are not exposed. This isn't really legal, but they get away with it because the Obama administration allows them to.
-Creating a carry trade between the US Dollar and US Equities so that both have a correlation of negative one, creating a scenario where the appreciation of stocks like Bank of America, Wells Fargo, Citi Group, et cetera, depends solely on the depreciation of the US Dollar. But this is true for all asset classes, especially the commodity producers. Dollar down, crude, crops, steel, and other stuff up. All this means is that the middle class suffer while the CEO's of corporations gain a little support to their operations.
All of this stuff is government sponsored, Keynesian approved, and demanded at the behest of the major banksters on Wall Street. Hank Paulson, Timmy Geithner, that asshat Larry Summers, and the rest of the pigmen.
Even all that is enough to wreck an economy. But instead, we still have near-zero productive capacity, we continue to increase the debt-to-GDP ratio, we still blow ALL of the government's tax revenue on ENTITLEMENTS alone, and we've yet to address the 90+% of the debasement of our currency since 1913. If we are blowing our entire tax revenue on programs like unemployment benefits and social security, how on Earth can we keep borrowing to sustain other programs like national defense?
Easy answer: WE CAN'T, or else we default. WHY? Because the only way for the government to spend more is to "Quantitive Ease", meaning debasing the currency further, which means causing a capital flight from the United States in which interest rates rise and creditors finally realize there is no chance to repay our debts.
IT IS INEVITABLE if this continues, simply because of MATHS.
The fact that nobody, and I mean NOBODY in public office and the general public wants to address these issues is why we are screwed. Everybody wants a free lunch or to take part in a Ponzi scheme. But as we all know, neither can exist in a sustainable economy.
Just some anecdotal from a finance forum filled with big players and wannabes.
This could very well be true. If it is, we aren't in the greatest depression, but rather the end of an empire. It sort of goes along with what Max Keiser has been claiming... international investors are fed up with the fraud stemming from Wall Street and the Fed.
This could very well be true. If it is, we aren't in the greatest depression, but rather the end of an empire. It sort of goes along with what Max Keiser has been claiming... international investors are fed up with the fraud stemming from Wall Street and the Fed.
Ireland Credit Default Swaps at Record as Allied Signals 63% Chance of Default
http://www.bloomberg.com/news/2010-...llied-irish-signals-60-chance-of-default.html
Uhh, yeah, this is getting nasty. The Euro isn't getting pounded because Ben Bernanke is about to announce his nonsense quantitive easing program in one hour. Should be a hectic week after all this.
http://www.bloomberg.com/news/2010-...llied-irish-signals-60-chance-of-default.html
Uhh, yeah, this is getting nasty. The Euro isn't getting pounded because Ben Bernanke is about to announce his nonsense quantitive easing program in one hour. Should be a hectic week after all this.
If the economy is improving, why are 17% more families using food stamps THIS YEAR than LAST YEAR?
Simple answer: it's NOT IMPROVING.
http://blogs.wsj.com/economics/2010/11/04/some-14-of-us-uses-food-stamps/
And what will happen when Ben Bernanke's dollar debasement sends food and oil prices soaring? MORE people will need food stamps. Combine this with the fact we are heading into another period of negative GDP (recession) and an already maxed out government entitlement program?
One word. Depression.
Simple answer: it's NOT IMPROVING.
http://blogs.wsj.com/economics/2010/11/04/some-14-of-us-uses-food-stamps/
And what will happen when Ben Bernanke's dollar debasement sends food and oil prices soaring? MORE people will need food stamps. Combine this with the fact we are heading into another period of negative GDP (recession) and an already maxed out government entitlement program?
One word. Depression.
MUST READ articles to understand the current macroeconomic situation. Both for Americans AND citizens of other nations. Ben Bernanke is systematically destroying the entire world economy with his decisions at the Federal Reserve.
http://market-ticker.org/cgi-ticker/akcs-www?post=171242
http://market-ticker.org/cgi-ticker/akcs-www?post=171263
I am sending these articles to everyone I know, along with calling my state and local officials. This information on the FED and rampant fraud throughout the entire economy needs to be acknowledged by everyone.
http://market-ticker.org/cgi-ticker/akcs-www?post=171242
http://market-ticker.org/cgi-ticker/akcs-www?post=171263
I am sending these articles to everyone I know, along with calling my state and local officials. This information on the FED and rampant fraud throughout the entire economy needs to be acknowledged by everyone.
