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Old 12-13-2012, 03:12 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
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All that money and no wealth

In 2008, the bank of international settlements warned of a coming collapse.
They were one of the very few who spoke up.
Now they are warning of a collapse in the bond market.
Swiss-based BIS warns of another 2008-style credit bubble about to burst « ArabianMoney

The world economy is about $ 50 trillion a year.
The current total estimated notional value of all the derivatives is $1.5 quadrillion. There is an estimated 10 quadrillion worth of contracts denominated just in dollars.
The money supply in America rose at 6 times the rate that the GDP rose.
We see an enormous amount of currency and money-substitutes being created without underlying wealth.

The world is awash in paper instruments. These instruments have no intrinsic value. They can only be "vitiated" by wealth skimmed off in taxes and profit from the production-consumption cycle.
The various banks have had to extend credit farther and farther out to make up for the lost purchasing power in the West. We promised tomorrow's wages for today's luxuries.

The credit super-cycle is coming to an end. Consumers are using credit for survival. Wealth is moving from the West to the East.
The standard of living is dropping.
Too many people failed to save.
"#7 One recent survey discovered that 40 percent of all Americans have $500 or less in savings.

#8 A different recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies."
15 Signs That The Economy Is Rapidly Getting Worse As We Head Into 2013

Manufacturing is the primary value-added industry. It moved East. Our standard of living will drop quite a bit.
GOV promoted itself as the ultimate security-blanket. That promise is soon to be proved a fraud and a lie. When the bond market blows, it will take EVERYTHING with it. It's hard to say whether the bond market or the derivatives market will blow first.
The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System

Robert Wiedemer accurately predicted the crash. He is predicting the next crash. This is what he is predicting;
"In a recent interview for his newest book Aftershock, Wiedemer says, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”
Faber: ‘Massive Wealth Destruction’ Coming, Well-to-Do ‘May Lose 50%’ | The Total Collapse

While it is more-or-less safe to predict economic events, it is very risky to set a timeline. Wiedemer is off by a bit.
A collapse in the bond market would make almost all paper assets worthless. There is a very good chance that U.S. dollars would still have good value. Keep cash at home.

This is an article on the current financial operating system.
Guest Post: The Economic Death Spiral Has Been Triggered | ZeroHedge
This is an excellent vid on the longer term forecast;
Bucky's Vision of the Coming Better World, Dollars and Sense Show 27 - YouTube

Keep in mind that a bond market collapse will cause a bank holiday.
During a bank holiday, NO credit transactions can be posted. That means no EBT cards, no credit.
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