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Devaluation Coming.....Yes, Virginia, it can happen here.

Discussion in 'Economics, Business, and Taxes' started by Sgt Staples, Oct 8, 2012.

  1. Sgt Staples

    Sgt Staples Mayor

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    Prepared for the crisis, or do you think those who are sounding the warning bell are paranoid?

    Well, the history of the world is tyranny which results in uninformed people not preparing for the destruction done by their governments.

    Normally, gold and silver escalate higher with paper money depreciation. But the U.S. government cooperates with the big banks to suppress the normal and natural price of gold and silver. The government implies that it is legal to own gold and silver but it keeps the market price suppressed to discourage ownership and competition with its paper money. The suppression will end and gold and silver will skyrocket as confidence collapses further.

    The collapse of paper money is at this time the biggest event in our lives, but so few are aware.

    There are many police state controls ready to be formalized. Exchange controls with huge penalties will be installed.

    Governments devalue currency in two ways. They devalue all the time by printing money. On top of this, expect a big devaluation of 30 percent to 50 percent to come suddenly, unannounced, on a weekend.

    It will be a case of today you have a “dollar.” Tomorrow you have 50 cents. So everything requires double money all at once.

    Buy gold coins and silver coins, especially pre-1965 90 percent silver U.S. coins. Buy in bags of $1,000 face amount or, if you can’t do that, buy half bags or $500 face amount.

    Also, buy and store non-perishable food. Inflated U.S. dollars will bring very high food prices and famine in the land. And if you possibly can, grow and can your own vegetables.

    http://personalliberty.com/2012/10/08/devaluation-coming/
     
  2. Bo-4

    Bo-4 Senator

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    Lol, we know Sarge.. the sky is falling, the sky is falling AWWWK!! :D

    aimages.sodahead.com_polls_002719113_459868870_bush_chicken_little_xlarge.
     
  3. Woolleybugger

    Woolleybugger Mayor

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    There was so much gibberish in there that I have to shake my head and wonder at your sanity. One thing though is certain, if we devalue the dollar, it will make our products cheaper and we will export more to the world. At the same time, it will make imports more expensive and we will import less meaning that our own producers will have a larger market to operate in and hire more people. Maybe we should encourage a massive devaluation of the dollar...
     
  4. degsme

    degsme Council Member

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    Right.. its the same priviledged few who also know about Obama's Birth Certificate being fake...

    Riddle me this, what is the current long term Treasury Bond Rate? http://www.treasurydirect.gov/RI/OFBills Oh yes.. 52 week is 0.175%... and 30 year is 2.81% http://www.treasury.gov/resource-ce...interest-rates/Pages/TextView.aspx?data=yield

    Now tell me... How stupid are all these long term bond investors around the world. We all know the "gold bugs" are so much smarter


    BTW Deflation? Hint that's what happens with GOLD BACKED currencies...http://www.jstor.org/stable/10.2307/1928697

    Hint... Dollar collapsing is not DEFLATION bt INFLATION...


    You really dont seem to know what you are talking about... but I do urge you to buy gold as it is at an all time high... Well that's actually mean... since that would be hoping you experience a financial implosion
     
  5. degsme

    degsme Council Member

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    Well the really sad thing is that he doesn't seem to understand the difference between inflation and deflation
     
  6. EatTheRich

    EatTheRich President

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    The U.S. is trying to weaken the dollar (not in the paranoid fantasy sense of halving the value overnight but in the sense of a generally inflationary monetary policy) for just those reasons. But China, Japan, Germany (and the other eurozone members), etc., are caught up in the same worldwide depression and doing the same thing for the same reasons. It's these currency wars that run the risk of setting off hyperinflation through a race to outdo the rivals, or of escalating into shooting wars.
     
  7. degsme

    degsme Council Member

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    it is a risk,,, but so far the USAs doing ok
     
  8. EatTheRich

    EatTheRich President

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    We should have automatic COLAs for wages, pensions,and entitlements--tied to the price of something like corn meal, not the easily manipulated CPI. It'll help poor people keep up with inflation. The bourgeoisie will yell that these COLAs will cause a spiral of further inflation ... I would suggest that the price of labor power eventually reaches parity with other commodities through the laws of supply and demand, leaving only the political question of how fast it catches up and how badly workers are exploited in the interim to be resolved by class struggle. I would add that provisions like the proposed, doubling the minimum wage, rent and tuition controls, etc., eliminate most of the negative consequences of inflation for many of us, and would also likely force the capitalists to raise taxes as a counter-inflation measure and yo get the debt crisis under control. This'll occasion a sharp debate in the ruling class, and the same union-led movement we'd have to build to put the program into motion would be able to take advantage of these divisions to push for a larger redistribution of wealth and ultimately an end to the entire wages system and the capitalist marketplace at the root of the economic crisis.
     
  9. Days

    Days Governor

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    The NY mfg. just hit the skids. IMF is warning of global recession.

    the sky isn't falling but dark clouds are rolling in.
     
  10. Woolleybugger

    Woolleybugger Mayor

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    This is what happens when you allow for global financial interests to run the real economy which is hidden from policy makers. I remember Milton F once saying that one day a massive computer could run the world...I actually think we need to rethink everything about free trade and finance or face a collapse so gigantic that it will make the Depression look like a picnic. The most obvious truth is that the planet will not sustain 8 billion people living in a consumption based economy that has the standard of living of the West and parts of Asia. When you throw in runaway population growth anyone can see that there has to be a sustainable model that keeps some form of equilibrium intact between the planet and people. Since people are extremely short sighted, it won't happen until a giant disaster happens forcing our hand. My bet is in the next 100 years, there will be blood. Lots of blood. I feel bad for our kids and their kids because they will be the generation that starts to face the stark truth of limitations, scarcity and distribution. I ask everyone the same question: If you think 300 million people in America is bad, why do you think 500 million will be better?
     
  11. Days

    Days Governor

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    During the financial meltdown, I remember posting something to diogene... I said, "dio, everyone thinks the banks are failing, but in reality, it is the money in the banks that is failing". The banks constantly produce more money from thin air; that's the creation that has to keep producing because it is being destroyed just as rapidly. What nobody sees is that it keeps happening faster and faster and faster; and it keeps changing form, there is no one size fits all for derivatives, its all these new parameters that make the money susceptible to collapse. If today's electronic money is internet money, that needs to be online to exist, then a crash in the internet takes away the money. There are all these pragmatic ways for the system to fail and each one of them represents a collapse in the currency. All along, I kept posting that the mortgages that were failing in the bundles were failing due to fraud, not foreclosure. No one believed that. The headlines all said they were bad risks, that the guidelines were too lax, liar loans, et all, but again, during the crisis, I wrote dio, "think about this; if these are just bad loans, then they would stay on the books, and even the foreclosures retain the value of the property on the books, and since the banks refuse to write those values to market, even the loans that utterly fail are not showing up as losses on their ledger... and yet Citibank is booking $10 billion in losses per quarter (at the time) ... mortgages can't produce that, unlike these other securities, a mortgage has the property in reserve... so what are these astronomical write-offs? They are fraud. They are bundling these mortgages and selling to market and when the nation of Iceland opens their bundles half of the loans don't exist; the Borrower doesn't exist, the property doesn't exist (or they exist but this loan was faked; identity theft) and the Title exists in name only because they have closed shop and left town (Title insures the loan) - so the investor has nothing, it is a total loss, the entire loan has to be written off; that's what's happening, the mafia is setting up legal brokers and title, writing half a billion in jumbo loans, processing it all in 6-8 weeks through MERS with 50 different Lenders, closing it in house, taking the money and run, and then do it again. It is massive fraud." I knew about it because I was in the industry. And I knew the banks were keeping it hush-hush. Now the state of New York is suing the secondary market (starting with JPMorgan) for damn well knowing those bundles contained fraudulent loans when they sold them on open market. But the disconnect remains in everyone's minds. Neither could anyone understand what I meant when I said this was the way the currency was collapsing. But all those new loans was money creation, and all that fraud was collapsing the new money. Now take three steps back and look at the whole machine; the mortgage industry was feeding bad fuel to the economic engine, so it sputtered and conked... and the whole market collapsed.

    Can that happen again? Not from mortgages, at least, not while they have the market shut down. But there's easier ways for the new fuel to fail. Like I said, would if the internet were to fail? The guy who wrote the top post doesn't understand his own post. He thinks the money could suddenly devalue. That's not going to happen. But it could fail. It could collapse when it fails to function. That's what Warren Buffet was talking about when he called the derivative market "weapons of mass financial destruction"... we could get a batch of bad fuel from the derivative market; and instead of happening to the tune of billions, it could happen to the tune of trillions... that would be catastrophic.

    meanwhile, everyday policy blunders along ... with all its disconnects and failures.
     
  12. gabriel

    gabriel Governor

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    fake loans and mortgages?? lol.
     
  13. Woolleybugger

    Woolleybugger Mayor

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    I agree. The securitization of debt and all the assorted instruments associated with this casino style betting is extremely dangerous. Regardless of where you come down on macro econ, the truth is that we are in uncharted waters here. Humanity has never seen money being used for betting on this scale before and no one can predict for certain if it will work. The Quants thought they had it all figured out, they were wrong. I do believe that they will ruin the worlds financial system before long and then we will have to make a new system that forbids this type of activity once and for all. I remember reading that opium was purged from China very quickly. They executed anyone dealing in it, using it, importing it or even coming close to it. Perhaps we need to do something similar to CEOs and risk managers at the big banks. Life sentences would be a great start.
     
  14. degsme

    degsme Council Member

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    BECAUSE OF GOVERNMENT AUSTERITY programs!!!
     
  15. Woolleybugger

    Woolleybugger Mayor

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    Gabe, he meant that the loans and mortgages were fake because they were based upon asset speculation, unsound banking practices and loan qualification procedures and were immediately sold off by the originators leaving them with no responsibility for the loan at all. This in essence is what the collapse was about because once you got here, all you needed to do then was to bundle them into huge products, get the ratings agencies to approve them and find suckers like us to buy them. In my world, that means the whole thing was nothing but a scam.
     
  16. EatTheRich

    EatTheRich President

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    The answer "too many poor people" has been proven wrong in practice for hundreds of years by the revolutionizing of productive techniques. The real problem is the chaotic capitalist marketplace thtat puts those techniques at the service of individual gain without regard for the welfare of humanity or the planet.
     
  17. gabriel

    gabriel Governor

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    if youre gonna stick up for the guy, perhaps ypu should read his posts first!!

    he said:
    Iceland opens their bundles half of the loans don't exist; the Borrower doesn't exist, the property doesn't exist (or they exist but this loan was faked; identity theft) and the Title exists in name only because they have closed shop and left town (Title insures the loan) - so the investor has nothing, it is a total loss, the entire loan has to be written off; that's "
    "
     
  18. Woolleybugger

    Woolleybugger Mayor

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    did not see that, thanks for the clarification. But does it really matter how the fraud happens? While that example is pretty obvious, the same thing happened here on the up and up and the net result was the same. That is my point.
     
  19. Days

    Days Governor

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    both were happening, but the huge write-offs in 2007-2008 would not have happened without the identity theft taking advantage of MERS (electronic online processing introduced to the industry in 2001 and universal by 2005.

    gabriel is stalking again, he's mad because he blames me for his last banning. I didn't get the guy banned, that happened between him and the moderators.
     
  20. Days

    Days Governor

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    both were happening, but the huge write-offs in 2007-2008 would not have happened without the identity theft taking advantage of MERS (electronic online processing) introduced to the industry in 2001 and universal by 2005.

    gabriel is stalking again, he's mad because he blames me for his last banning. I didn't get the guy banned, that happened between him and the moderators.
     

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