Stagflation fears jump

[Bob]

I know many people don't like to hear these things. I don't enjoy prepping for the possibility but I am ready.And the possibility of economic collapse doesn't bother me. It's an inevitability as long as fiat currency exists which works until it suddenly doesn't. Governments don't pay debts, you do. And debts this large NEVER get paid. They are debased or defaulted. That's it. Raising rates will cause our interest payments to bankrupt us within weeks if not days. Monetizing/printing debt to pay for debt makes US debt holders and savers angry. But who cares about them? What truly worries me is the 98% of our population which isn't ready.

I'd like to recommend a new site which used to be just a blog, TFmetalsreport.com. It has been a growing community of concerned people from around the globe about the fate of Keynesian economics and the destruction of all fiat currencies. Yes, we are gold/silver bugs. Be careful, truth is contagious and you will be storing your purchasing power in gold if you read too much.

We don't hope for chaos, we merely prepare for it. We do hope by telling friends and neighbors about options to protect themselves, the fall will be cushioned. Stay out of political debate traps and wedge issues. None of that Kabuki theater matters. Take care of yourself, family and neighbors.


This long paper has everything you need to know.

http://www.shadowstats.com/article/hyperinflation-special-report-2011

Great Collapse Nears

"The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment. Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press in March 2011, but moving into a full blown hyperinflation could take months to a year, beyond the onset, depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve.

Prerequisites to the crisis unfolding include: the Federal Reserve moving to monetize U.S. Treasury debt; the U.S. dollar losing its traditional safe-haven status; the U.S. dollar losing its reserve status; the federal budget deficit and Treasury funding needs spiraling out of control. The Fed moved to monetize Treasury debt in November 2010. A much-diminished U.S. dollar safe-haven status has become evident in early March 2011, along with serious calls for a new global reserve currency. The economy is not in recovery and should display significant new weakness in the months ahead, with severely expansive implications for the federal deficit, Treasury funding needs and requisite Fed monetization of debt.


As the advance squalls from this great financial tempest come ashore, the government could be expected to launch a variety of efforts at forestalling the hyperinflation’s landfall, but such efforts will buy little time and ultimately will fail in preventing the dollar’s collapse. The timing of the onset of full blown hyperinflation likely will be coincident with a broad global rejection/repudiation of the U.S. dollar.
With no viable or politically-practical way of balancing U.S. fiscal conditions and avoiding this financial economic Armageddon, the best that individuals can do at this point is to protect themselves, both as to meeting short-range survival needs as well as to preserving current wealth and assets over the longer term. Efforts there, respectively, would encompass building a store of key consumables, such as food and water, and moving assets into physical precious metals and outside of the U.S. dollar."

so, if you lived in Bolivia, you would have killed yourself already? are you old enough to remember fallout shelters? did that come to pass?

 

[Andy A]

After a major run up over the last year, which might just have something to do with the economic recovery floundering.. which would cause commodities to fall in value. Geo I don't know if you follow commodity markets but I can assure you prices are not low compared to past values. ANYONE who has purchased a 12 oz steak, a pound of seafood, or a 1/2 gallon of milk knows this.

Exactly!!!

 

[beachFool]

Speculation in energy futures contracts plays an important part in rising fuel costs and those costs end up on grocery shelves.

Your team, amigo, has consistently opposed common-sense regulations which would force speculators to disclose positions and have larger margin requirement than end-users.

http://www.upi.com/Business_News/En...rgy-prices-on-speculation/UPI-26871305210520/

It's your money if you like giving it away knock yourself out.

 

[Andy A]

It is my strong feeling, Buz, that there is enough blame as far as speculators, hedge funds and the amount of regulation to go around on both sides. Our team may have been responsible for originally putting us in this mess but your team has damn well kept us there. Farmer and other subsidies should be done away with and the market allowed to function as it was designed. I'm no financial guru but I know what makes common sense and what doesn't and this administration doesn't seem to have any.

 

[TNJed]

so, if you lived in Bolivia, you would have killed yourself already? are you old enough to remember fallout shelters? did that come to pass?

Fallout shelters weren't needed thankfully but were certainly prudent given the time. Does that mean math, debt, and unemployment don't count today? I don't see the comparison unless you think preparation for any worst case scenario is a waste of time. Given an economic and dollar collapse is a very real possibility should be the only reason one needs to protect themselves with currency insurance. Hopefully you won't need gold overnight but over time it will preserve purchasing power.

Let me ask you, do you have homeowners insurance? Would you have it if it weren't required by the mortgage holder? Would you have auto insurance if it weren't required? Would you cancel your fire insurance in the wet season?

Nobody looks at gold as currency insurance for good reason, we've had 3-4 generations who've only known king dollar. It is a paradigm shift in logic to consider what you thought was safe no matter what isn't. There is a reason why bank-run ends in a run.

Graphs like these, of fiat currency, always end the same. They end in their intrinsic value of 0 once confidence is lost. That's just a failed auction, rate-cap, QE3, or defaulted country away. I don't predict MadMax, but I do predict panic, worry and a lot of finger pointing at all the wrong things. A new currency or gold pegged dollar will come out of it as history has proved over and over. Gold is merely a ferry of your wealth to last the transition.

 

[Bob]

What happened to the gas bag?

 

[TNJed]

I'll give you an 8 for the barb, but a 0 for content or thought.

You are now returned to your regularly scheduled programming.

xoxo