Tweet
Originally posted by Danny B
View Post
-
This is the statement that caught my eye. To beat them at their game, you need to convert YOUR Federal Reserve Notes into tangible assets. Would you agree?There is a reason why science has been successful and technology is widespread. Don't be afraid to do the math and apply the laws of physics. -
Cash to tangibles
Wayne, that all depends on how wealthy you are. The VERY wealthy are locked into bonds. They can't go out and buy up $200---300 billion of stuff. There is now a SHORTAGE of assets to buy, INCLUDING BONDS. When CBs printed up an extra $ 100 trillion, there was no place for it to go. The wealthy gained the most from the printing. They will lose the most from the unwind.
Most credit instruments are going to crash. Paper money is a debt note but, not truly a credit instrument. That is why GOV wants to take them out of circulation. Credit can just evaporate but, paper is more durable.
As far as buying tangibles when you have a limited budget, that is a good idea because the system is going to lock up. Find a bulk grain supplier like Honeyville Grain. Buy whatever you can store and afford.
Honeyville | The Leader in Food Storage & Baking Ingredients
The second thing that I bought was diesel fuel. It stores better than gasoline. When credit locks up, the cities are going to go up in flames. Mobility is going to be a critical issue. i have a couple of old MBZ diesels that will run even if there is an EMP burst. Not happy with that, I am building a woodgas truck of the general design of Wayne Keith at Drive On Wood.
While you may be right to convert cash to tangibles, a supply of cash will be absolutely critical when the banks close.Comment
-
Physical gold in Texas. Contagion- Athens to Berlin
Investors are thoroughly disgusted with all the gold being stolen from GOV controlled depositories. They are very worried about what to do with gold in the event of a confiscation. The new Texas depository is drawing extraordinary interest from investors around the world because it promises to be 100% physical BUT, still do transfers electronically. it remains to be seen if they can actually get their gold back from New York.
Texas Gold Bill Sponsor Challenges Feds to 'Come and Take It'The Next Great European Financial Crisis Has Begun
The Greek crash will take down Deutches bank. They hold derivatives equal to 15 times the GDP of Germany. THAT will make a BIG splash in financial markets. Goldman Sachs insisted on raping Greece and forcing privatization. The Greeks resisted and this will blow German AND New York derivatives all to kingdom come.Comment
-
Greece 2017 – Sovereign Debt Cycle | Armstrong Economics
"I do not want to sound alarmist. However, it is critical to get the word out for when this turns down hard between 2015.75 and 2017.90, they will blame everyone but themselves. The two harbingers of economic totalitarianism, Rogoff and Buiter, are only looking at this from a purely academic perspective in a perfect world. They fail to grasp this road leads ONLY to totalitarianism, which is most likely not their intent. Nevertheless, this entire economic system is failing and all you need do is look at the collapse in liquidity in the bond markets. A trader is scared to death. Only an academic who has no such experience is oblivious to this crisis."
Ah yes,,, academics and lawyers. Pure poison.
Government Has Gone Insane – That’s What a Phase Transition Is All About | Armstrong Economics
Hugo Salinas Price;
"Total world debt has been calculated recently at $223 Trillion dollars. World debt has increased some 40% since the crisis of 2008-2009; as I recall, it was about $157 Trillion at that time. The $223 Trillion is actual debt, and does not include the potential debt lying in derivates of this debt, which is another humongous amount and would become debt should there be any default on the $223 Trillion world debt.
The $223 Trillion world debt is like a huge cloud up in the sky.
It is of vital importance for the world of finance, as it presently exists, that the $223 Trillion world debt continue up in the sky, and that it not be subject to liquidation.
Liquidation and payment are two different things.
Liquidation means that holders of debt seek to exchange the debt they hold, for cash.
The problem for the world's central bankers is to keep the debt cloud up in the sky and avoid at all costs a deluge of liquidation. That is to say, there must be no movement to get rid of bonds in exchange for cash."
"But if all the big investors are owners of bonds, who are they going to sell their bonds to when they wish to liquidate them and get into cash? These investors are going to suffer big losses, because the prices of bonds will have to collapse. This is going to take place the moment that the investors think that the trend in interest rates is no longer down, but up."
"Banking systems are investors in bonds, and bonds make up an important part of their assets. In Europe, if the assets of the banking system fall by only 4%, then the whole European banking system is bankrupt. "
"they are trapped and wait in dread for the deluge of bond liquidation when the $223 Trillion debt cloud hanging over the world turns into a cloudburst."
Armstrong seems to agree in timeline with the news out the back door of the Pentagon. 2 years of total chaos. GOV is looking to implement martial law as a substitute for civil control. Martial law means command-and-control of the economy. No amount of martial law can compensate for a collapse of credit markets. His models are based on CONFIDENCE. GOV has all the laws on the books for confiscation. Will the farmers plant if fuel supplies are uncertain,,, if confiscation seems likely?
This will be Agenda 21 in reverse. Big concentrations of population make sense for a manufacturing economy. They don't make sense for an economy with diminishing agricultural output.Comment
-
nationalizing the banks
It doesn't appear that there is any way to save Greece,,, at least the Greek banks. They aren't expected to open on Monday. Outflows have hit as high as 1 billion Euros a day. Greece will nationalize the banks eventually. This prospect has terrified various leaders. They tried to play hardball with Yanis. THAT was stupid. There are emergency talks on monday but, the banks are too damaged to survive. Greek tax collections have crashed because people believe that the whole mess will crash down.
Greece faces banking crisis after eurozone meeting breaks down | World news | The GuardianComment
-
Aircraft carrier problems need expensive fixes
Not all GOV agencies are running out of money.
TWO CIA AGENTS ARRESTED BY MINUTEMEN WHILE CROSSING MEXICAN BORDER WITH 1300 POUNDS OF COCAINE | Political Vel Craft
The above link went bad. T
he story was changed.
Two CIA Agents Arrested by Minutemen while Crossing Mexican Border with 1300 Pounds of Cocaine World News Daily ReportComment
-
Ending Taxation - The Only Game in Town - 2011 - Walter Burien - CAFR1 at Conspiracy Forum, with video embedded, topic 2123580
"the department has plenty of cash, even though it has been soliciting hundreds of thousands of dollars in donations in what was thought to be a desperate scramble to keep parks open."
BREAKING NEWS: California State CAFR looked at; Fraud identified; Heads Roll
Oregon legislator reads CAFR, finds billions, ends budget deficit crisis; (Conspiracy Forum) 11/14/2013 2124291
"Since 1946 (legislated by a wiser Congress), 84,000 Government entities including States, Counties, Cities, School Districts, etc., have been required yearly to report the ACTUAL accumulated financial assets and income they each separately possess."
"Between local and Federal government, the total of liquid investment assets held Internationally is a conservative sixty (60) Trillion dollars."
"When Orange County lost a little over $1 billion in derivatives investments, they were crying "poverty" and threatening to shut down schools, police would have to be laid off etc. However someone dug into the Orange County CAFR and found out that the county had about $16 billion in profitable investments! The county, from their profitable liquid investment funds / cash position could have continued performing the same services, without collecting one dime in taxes, and could have done so for another 11.9 years from the existing funds prior to running out of money! "
"While he was a Mayor, Jesse Ventura's city council wanted to raise $360,000 in taxes to cover a short fall on their "city budget for schools." Ventura objected when he discovered the city owned $48,000,000 in idle investments funds from which the $360,000 could be drawn from without raising taxes!"
""GROSS" INCOME of government is now 1/3rd "TAX" income and 2/3rds NON-TAX income derived from: return on INVESTMENTS and money generated from government Enterprise projects."
OK, you get the idea. 48,000 GOV entities have stashed away $ 60 trillion. CAFRs: The BIGGEST Secret - $60 Trillion Invested By Fed, State, And Local Governments!
" liquid investment funds, bond financing accounts and corporate stock portfolios (32 Trillion) over 53% of America's stock market, and a large percentage of the international stock market, etc., are all revealed in their required filing of CAFRs (Comprehensive Annual Financial Reports) and noted reports therein."
It's not like they make a secret of this.
I can understand, "they" want to reduce population and make us poor so we can't afford to have kids. I can understand that "they" want to crash the system so that the phoenix of world socialism rises up out of the ashes.
State and local GOV buy bonds from the FEDs.
When the FED defaults, what will happen to this $ 60 trillion? If all levels of GOV collapse, there will be plenty of ashes but, NO phoenix rising up.
Those with the most money stand to lose the most. When the bail-ins come, will the cash part of these stashes by sucked up by the banks?Comment
-
Greek fallout
Things are quiet for the moment. The Grexit possibility has brought down the Swiss Franc. They thought it wouldn't affect markets. Greece isn't in all that bad of shape. There must be some stinky derivatives lurking in the background. Their problem is that they were cut off from credit markets. Russia is willing to step in and help out. Greece was supposed to be rogered real good just like Argentina. Russia is willing to spoil that plan. Yanis Varoufakis wrote 3 books about "game theory". What did Merkel write after her long indoctrination at Karl Marx university?
Goldman Sachs wants to rape and pillage Greece. The bankers do not want to see Greek banks collapse and be nationalized. America does NOT want to see NATO kicked out of Greece. Germany was invaded when it did not play by the banker's rules. It is doubtful that Greece can be invaded. Should Greece return to the Drachma, Greek holidays will be much cheaper. Greece can declare Force majeure and cancel it's debts. There will be little that the bankers can do to make things worse.
You don't need to actually visit Greece to get the Greek experience.
Ron Paul; "So we're all on the verge ‒ the country, the world is on the verge of looking more like Detroit and Greece than anything else."
Read more: Ron Paul: US Stock Market About to Collapse / Sputnik International
I've travelled around Greece and I like it very much.Comment
-
The Euro Does Not Have A Problem... It Is The Problem | Zero Hedge
The Greeks have pulled out many billions of Euros in cash. "As for all the Athenians who have recently tapped the ATMs, check your euros. If the serial number starts with a "Y" that means it was printed by the Bank of Greece"
Meanwhile, Greece Is Quietly Printing Billions Of Euros | Zero Hedge
Somebody has a smokin hot printing press.Greek Contagion Abyss Looms ? Wealth Preservation Strategies | Zero Hedge
This is making a LOT of people very nervous.
"In other words, 6, 7, or 8 standard deviation moves that in theory should only happen once every two or three billion years may now start to show up once every two to three months." Somebody's models seem to be faulty"Comment
-
The end of a paradigm
America had a very high consumption economy because it had a lock on the premier value-industry,,, manufacturing. We sold to the rest of the world. 50% of the cost of anything that you buy is for finance,,, average. 19% for trash collection,,, 78% for public housing. This made the banks very rich. GOV taxes us $ trillions that it doesn't need or use.
When the low-wage labor markets came on the scene, they knocked manufacturing out of the country. They also knocked out the part of the finance industry that was tied to manufacturing. The design of the financial system demands constant growth of the money supply. The FED had / has a mandate of 2% growth. America now has 1 billion sq. ft. of empty retail space.
The domestic production / consumption could not /did not generate the wealth necessary to support the credit / money growth. When productive enterprise could not supply the wealth, more money was printed.
China made big bucks producing for the West. BUT, the productivity that they absorbed impoverished their former clients / buyers. We slip towards a global mean wage. The former affluent buyer is now walking the streets looking for cardboard and aluminum cans.
50% of cost equals 100% markup to support the banks. Half of our money supports banks. We work every year until April 24 to pay our taxes. There isn't much left over.
Our new found poverty is reducing income for China. They can't survive when the West works for Chinese wages.
China's stock market is about to collapse
The world can't survive working for Chinese wages at anything above a survival level. The robots "live" just for survival so, they can always undercut our wages. It's a downward spiral of wages and consumption.
The lack of employment just keeps driving down the economy. 25% of the households in London have nobody employed. Still, everybody demands support.
"Governments cannot face the facts. There is NO WAY to maintain the current system. It is dead and trying to blow air into a dead-corpus is pointless. They will not bring this back to life. We need SERIOUS REFORM to save society"
What if the PTB don't want to save society?
Edit, the financial authorities claimed that they could banish the business cycle by supporting instruments when they threatened a downturn or correction. There would be no "down days". Stocks would always hold their value. This is especially true in China. Even with GOV support, investors are getting nervous. 18--1 is a good ratio for stocks. Price is 18 times earnings. The Chinese market recently hit 95--1. Even with the central bank backing up equities values, this extreme number was just too much. The Shanghai index fell 13.3 % in one week.
Signs Of Financial Turmoil In Europe, China And The United States
The British are complaining about austerity. GOV is preparing to cut 12 billion pounds from welfare. Welfare cuts of £12bn to be announced in the next Budget - UK Politics - UK - The IndependentComment
-
Demographic changes
There is endless talk about creating jobs and boosting consumption. There are endless prescriptions for reviving the economy of Japan. The Japanese are getting old and dying off. Nobody seems to mention this or factor it in. Japan is ahead of America but, going down the same road.
"The 0-54 peak yr/old segment growth peaked in the early 90's at almost 3 million and has steadily declined since...now down to 300 thousand. This is a 90% drop from the '90's growth rate in new population...a 90% drop in new consumers, 90% drop in new homebuyers, etc. etc. "
90% sounds pretty important.
"2- Annual US population growth of 55+ year old segment. This is the segment nearing or in retirement. They generally are moving to fixed incomes and social safety net programs. They are asset heavy and cash light...and need buyers for all their assets they are mandated to liquidate in their old age."
Hambone's stuff: 0ne Simple Chart Explains the Great Financial Crisis and Why a Far Greater Crisis is Inevitable
GOV blew a bubble in the assets of this class so that they could sell out to the emerging purchasing class.
"Simultaneously, the 55+ year old population has grown early '90's 300 thousand to in excess of 2 million annually now. "
Comment
-
Crash Greece,,, burn the European taxpayer
Greece spent 50% of their modern history in default. The bankers thought that they could remove all chance of loss by writing derivatives (insurance) on Greek bonds. Of course this isn't realistic.
Any rescue of Greece is just a rescue of those derivatives. It has nothing to do with a rescue of the Greek economy. The Greek bonds are collateral for those derivatives. If the bonds enter into default, the derivatives must pay out a few $ trillion. The troika demands that Greece implement GOV austerity. It has been well proven that Austerity reduces economic activity and makes it even more difficult to repay creditors.
Should Greece agree to the demands of the creditors, it would temporarily uphold the value of the bonds / collateral / derivatives for a while longer. Greece would be poorer and less able to pay. The bonds can never be repaid with Greek money. It must come from the outside if it is to come at all.
Greece has NOTHING to gain by agreeing to a bailout.
Plan "A" is the usual. The bonds default,,, the taxpayer reimburses the private speculator. The profits are privatized,,, the losses are socialized.
Comment
-
2015U.S. Government Offers 100 Million Americans Generous Severance Deal To Leave Country - The Onion - America's Finest News Source
Funny that spell check does not recognize Barack Obama.
An interesting note from India;
"Gold Smuggling in India at All-Time High. Customs agencies seized over 3,500 kilograms of gold (112,527 ounces) in 2014-2015, the largest stash ever confiscated in Indian history. The report says gold smuggling has grown by 900% in just two years. It also estimates that seizures could be less than 10% of actual smuggling."
World Wide Financial Collapse Scheduled For Between September and the end of December 2015!
That's 35,000 kilos smuggled in to add to the reported holdings of 20,000 tons. Indians use the Rupee. They also use coins with big holes in them.
Comment
-
Capital may have triumphed over labor but, it can never survive without consumption.This is an extremely important consideration. We are supposed to continue down for 2 years. Then, we skid along the bottom. When all credit dies, what will revive job growth in sectors that are vulnerable to automation? A World Without Work - The Atlantic
The article goes on at length speculating what we will do with this new-found leisure time. If labor has lost the battle to both capital AND automation, our new-found leisure will be couple to a new-found poverty. Too much free time eventually brings great boredom for most people.Comment
-
Keeping up with the Jones's on borrowed money
America and much of the world have been in expansion for many, many years. We don't actually have any kind of "blueprint" for contraction. It just falls apart willy-nilly like a big, tall building hit by an airplane.
charles hugh smith-No Institutional Path to Contraction
Americans have been pushed and pushed to CONSUME and don't stop. GOV sends checks to half the people to encourage consumption. Don't WORRY, GOV will take care of you. Since GOV has promised to take such good care of me, I don't need to save anything.
Three in 10 Americans Have No Savings, Says Survey - NBC News
The total of these promises that are not funded has reached $ 212 trillion.
Get your name in early for Camp FEMA.Comment
Comment