As We Await The Global Financial Apocalypse

14 Replies to “As We Await The Global Financial Apocalypse”

1. The stock market meltdown will be proven to be only a bear market on Big Government.
   Corporate numbers in the US are phenomenally solid right now.
   Can’t wait for the market to bottom out … another great buying opportunity is just around the corner!

2. syf – I’m pretty sure it doesn’t work that way. At least not in 1932 and this is pretty much the same scenario. The gov’t money has run out and now the real free fall begins.

3. The trouble started when it seemed Obama was overtaking Hillary in the primaries.
   It will turn around when it looks like Obama will be defeated – either by a repub prez candidate or by a democrate primary challenge.
   It is by no means all O’s fault but his inability to grasp fundamental issues is causing uncertainty and angst in the business community and around the kitchen table.
   I also think Alan Greenspan bears a lot of the blame. His dropping interest rates to near zero during the Clinton admin started the bubble machine.
   Am I wrong?

4. I personally know people who, because of the 1930s, became very wealthy because they were frugal, cautious, hype adverse and disciplined.

5. So why didn’t Obama’s Billion$ in “stimulus” not work?
   One reason, because it wasted money on the green bubble (windmills, solar panels) instead of reliable, affordable hydro, fossil fuel generation.

6. You’re not wrong at all, Ron. When he was interviewed yesterday, Greenspan claimed that the U.S. would never default on its debts because it could simply print whatever money was necessary to pay them. What he didn’t mention is that printing away your debts through inflation is the same as defaulting on them. America’s creditors believed that they would be paid back in money whose purchasing power remained the same over time. They’re about to find out that this is no longer the case. It’s hard to believe that a former student of Ayn Rand’s could believe such nonsense. Greenspan needs to be smacked over the head with a copy of Atlas Shrugged until he recants.

7. bear:
   We’ll see what happens next November once Obama and the Senate Democrats are fired by the American people.
   Canada was downgraded to AA+ in 1995 and Paul Martin, of all people, took the hatchet to spending levels.
   Today, Canada has a AAA rating.

8. ron in kelowna:
   Fundamental issues like – work
   Reminds me of Maynard G Krebs.
   He also seems not to be aging as fast as his predecessors did when they were president.
   His biggest accomplishment, as president, will be getting his PGA card so he join the Senior’s Tour.

9. RGB if you think Obama is an incompetent president you should see his golf game. There is a reason his score card is never posted. (hint: its the same reason his college transcripts are ‘ultra top secret’).

10. This is far from being over. Hardly anyone understands monetary theory because only Keynesian and Friedmanite versions of economic theory are taught in schools. Governments cannot discipline themselves to keep an honest currency. When the US started the Fed in 1913, everything was in place to devalue the dollar whenever government screwed up. Because printing money was so easy and reliable, it became the fall-back position whenever politicians had to cover-up or needed funding for things the people would not support with tax money.
    Once on the slippery slope, there was no turning back, as interest had to be paid on the debt produced in order to create money.
    The corrosive effect of fiat money is little understood, so few could mount a reasonable argument against it. A return to honest money would be painful for everyone. Politicians do not have the gonads to risk losing power and certain electoral defeat by advocating a return to real money. Instead, they keep printing, hoping the end will not occur on their watch.
    But end it will because the system is unsustainable. People do not understand what unsustainable means.
    Greenspan understands what is going on. He knows why gold is the only real money but realizes that there is no turning back. He knows exactly how this latest iteration or dalliance with fiat money will end and it will not be pretty. The great depression occurred at the beginning of this latest experiment. Now we are at the end and it will be much worse.

11. My financial addvisor calls this wishful thinking.
    I hope the best for people like this but our governments are at war with these Individuals.
    JMO

12. My dad explained what occurred last time.
    It wasn’t so much the inflation but that you couldn’t sell anything and nobody was buying….a lot of bartering going on….

13. So the best options right now are probably to invest in lead and brass. Only question is what is going to be the most valuable caliber to barter with? .308, .223, 30-06, or 9 mm. I like to shoot my M14 and M1 so will stock up on .308 on 30-06 and probably should look into reloading (I already save all my brass just in case I ever had to do this).

14. loki
    I’m stocking up on fertilizer:-)))))