Is Economic Collapse going to happen this year?
by Iamallcool 10 Replies latest jw friends
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still thinking
dunno
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Mary
no....it happened two years ago.......
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WTWizard
It already started. The final collapse started in 2008, and now they are claiming a fake rebound. However, this is done by not counting people that gave up looking for work.
Already, since QE2 started, we saw prices going up. Gold is up from around $1100 per ounce to more than $1500, and only artificial suppression is stopping it from reaching $2000 quickly. Silver went up from around $20 per ounce to nearly $50, and had to be artifically dropped into the low and mid $30s. Oil is also up quite a bit, pushing gas prices up. All this while unemployment is officially around 9%, and actually closer to 20%.
There are factors about to kick into high gear. Already the EPA regulations on electricity, especially coal plants, are supposed to kick in this coming July. With the nuclear disaster in Japan as an excuse to decommission nuclear power, and environmental excuses to disallow natural gas extraction, we are in for a fake energy crisis. At minimum, it will drastically jack up your electricity bills. It is likely, even probably, going to result in widespread rolling blackouts when it gets severe enough. This is going to help kill off plenty of jobs, as well as shut down the free market on many products when vendors are without electricity and factories are prevented from producing.
Along the same time, all it takes is for China to decide to dump all their US Treasury holdings (preferably right at the start of a major Treasury auction), and you are going to see hyperinflation in the US like you have seen nothing of the kind. Worse than Germany. Worse than Hungary. Worse than Yugoslavia. Worse than Zimbabwe. The US dollar will become toilet paper abruptly, taking down most of the world that relies on it as the world reserve currency with it. The stock market will begin to crash. The Fed will step in to prevent it at all costs, printing (and typing) more toilet papers to buy this debt and the stocks so it will have the illusion of being stable. This will happen so fast (and typed toilet papers can be typed in quantities beyond what you can print) that your $4 gas will become $4 nonillion gas in a single day, and beyond. Only the limitations of computer chips (how many bits per number) will slow this down.
Also, remember those 2 bills that passed in 2010? The sick care bill became law last March, and contains more than 2000 pages. Buried within it are many provisions designed to kill jobs, most of which we don't even know about. One provision I know about is the section 9006, that contains provisions for mandatory 1099 forms to be filed if you spend at least $600 (which will not even buy a sheet of toilet paper) in any one location in any one calendar year. There is no telling to what extreme they will take that, but it could be that you need a 1099 form every time you go to the grocery store. At the very least, this is going to burden anyone wishing to start a business.
The other major bill is that S-510 bill, passed as an attachment to another bill at the last minute of 2010. Its companion S-3767 also got its essence passed the same way. This is another 2000 page monster that has many hidden provisions that we can only guess at. At the very least, it will make a paper trail for all your food. Raids on gardens and lemonade stands are possible as a direct consequence of this. You might also see small fund-raisers getting raided--because they don't have all the paperwork in place. Remember that bake sale? Even if you can afford the quintigillions and sesagillions of toilet papers for the food, baking and selling that cake for a school class trip could result in a nice little raid because there isn't the paperwork to trace it all the way back. And they could raid everything, since the average person has no idea of the full scope of this 2000 page monster--creating intimidation way beyond the bill itself.
I would say that this is enough to cause a collapse. And, knowing the Rothschilds, they are probably going to make sure it all happens at once. The hyperinflation will make sidestepping the blackouts impossible. Food laws contained within S-510/S-3767 could create famines--no more victory gardens (they get raided) just as hyperinflation renders groceries unaffordable. Mandatory sick care, along with business killing provisions in that same law, eat up valuable resources just when most people are unemployed. This creates riots that trigger martial law leading into Agenda 21+, or in shame and guilt as people beat themselves up for not buying precious metals or agricultural products followed by being easily led into compounds. And it will be worldwide--as the US Toilet Paper is still the world reserve currency, its becoming worthless will hurt everyone else.
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designs
Ah the Rothchild's..........just as I suspected and they still owe me back rent for that little Chateau I let them have last summer
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botchtowersociety
The collapse is ongoing. Things might get dicey this summer, but I think we will hit the big dip next year, but who knows? The timing is hard to do. Maybe it will be this year.
I agree a lot with WTWizard, except for the last paragraph. However, a currency can take a lot of abuse before hyperinflation can set in. The US$ has been insulated a great deal by being the global reserve currency.
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jaguarbass
It depends on your perspective, for me it happened with 911 and George Bush the dumber.
The stock market is pretty much where Clinton left it.
An investment in the stockmarket Van Guard sp 500 index fund from 1999 is pretty much the same place it was in 1999.
No growth in the US. At least in the broad markets.
From Reagan to Clinton, the Dow averaged 15% a year.
I work for the state which used to be a secure job.
No raise or cost of living adjustment in the past 6 years.
The souless, ghoulish, criminal govenor is hell bent on privatizing as many jobs as he can.
Buildings and homes are boarded up and empty every where I look.
I think I'll go buy some more silver today.
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diamondiiz
If there is no QE3 markets will melt as it was the Fed who supported the market rebound. Also, since the Fed was supporting the treasuries and with QE2 ending the markets are moving lower as the bankers pull their profits and move into the treasuries and cash which both support the dollar temporarily. This may be a good time to offload dollars by the Chinese and anyone sitting on too much of the green bucks and move into physical gold, or assets other than US dollar.
How long will Obama let the markets fall without QE3 is hard to tell, but I doubt it will be too long as he wan't re-election and those 401k accounts may continue to shrink thus causing unhappy voters. This may lead to more protests and violance which I don't think he will want at this time. We wrote about civil war which I still don't think will happen this soon as I fully expect QE3 in some form and a prolong recession which will move into higher inflation and maybe a hyperinflation which is when I could see real unrest.
First wave was the masses lost their assets in housing, the next will be those saving dollars in the banks. Once debt bubble bursts I can see hyperinflation and a possible civil war but that's still years away IMO.
One more thing, while I like silver bullion too, silver can get hit hard at first since it is semi-precious and it's not on the same level as gold. While it may be used for barter down the road, it won't be held by banks as a reserve unlike gold. So while it's good to have some physical silver, I prefer to have physical gold as in case of emergancy, it;s easier to move 100oz of gold than 3000 oz of silver.
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botchtowersociety
If there is no QE3 markets will melt as it was the Fed who supported the market rebound.
Yup. The markets are manipulated.
Also, since the Fed was supporting the treasuries and with QE2 ending the markets are moving lower as the bankers pull their profits and move into the treasuries and cash which both support the dollar temporarily.
I suspect the Fed will be doing a back door QE3 soon by putting a cap on Treasury yields in the short end of the curve. It won't be called QE3, it will be an "Operation Twist" redux.
http://twitter.com/#!/PIMCO/status/80276536510521344
First wave was the masses lost their assets in housing, the next will be those saving dollars in the banks. Once debt bubble bursts I can see hyperinflation and a possible civil war but that's still years away IMO.
Hard to predict. Things can move faster than we think, or this thing could still have enough life support to run for a while...and don't discount black swan events like what happened in Japan.
One more thing, while I like silver bullion too, silver can get hit hard at first since it is semi-precious and it's not on the same level as gold.
Silver took a dump at the end of April when they, ahem, raised margin requirements. More manipulation. It's rigged. However, the Gold/Silver ratio is way below its historic levels. If a reversion to the historic ratio happens, silver would go up to $90 at the current price of gold.
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diamondiiz
Botchtowersociety:
The 16:1 silver:gold ratio has been long gone. Silver lost it's precious metal status a long time ago. The momentary rise to 16:1 ratio of 1980 was caused by the Hunt brothers and silver collapsed as quickly as it rose. In history silver and gold were used as coinage, not so today but gold is still viewed as precious and is held by central banks as such, while silver is not. What occurred in April of this year with silver is similar with spring of 2008 and 2004 or 2005 if I remember correctly. Parabolic rises, get hit and correct and a drop of 30% for silver is not unusual, while gold usually drops around 9% on good corrections it hasn't done so last this past May - unfortunately :( Margins were raised partly because there was too much speculation happening but I don't doubt that a bank or two were getting squeezed due to their short position and needed help. That said, even if silver went further up, it's final fall would have been more dramatic as it would not have held to it's historic ratio with gold.
Hard to predict. Things can move faster than we think
They can also move much slower than we anticipated.