US, UK, Europe, House of Cards on a Windy Day
October 7, 2011, Submitted by: Ken Tweet
How much longer can it keep going? The politicians are stuck. On one side is violent internal upheaval or devastating war, on the other is the collapse of their one-world dreams in an economic morass that will take decades to clear up.
The western world is finding out what happens when its collective credit limit is exceeded. Debt is really nothing more than spending tomorrow’s earnings today. How much longer can money creation keep this sinking ship afloat? Quantitative easing or asset purchase programs are just euphemisms for debasing the currency.
The Bank of England governor Sir Mervyn King said yesterday “This is the most serious financial crisis we’ve seen, at least since the 1930′s, if not ever.”
It’s all a house of cards. If one of the players folds his hand then the whole of world finance risks descending into the abyss.
The ponzi scheme…
The dot com bubble burst, so to keep ‘it’ going at all costs, they dropped interest rates and created more money which then created the real estate bubble. When that collapsed, they changed the rules so that the banks rubbish assets on the ‘books’ aren’t held to market value. Then, print more money and push all that rubbish onto the governments. Except, now the governments are in trouble since they’ve bought too much rubbish.
So, let’s print more money… Counterfeiting has become the norm and the oncoming hyperinflation will wake up even the most cynical Keynesian. The derivative banking and fractional reserve banking has gone too far and is about to cause world collapse.
Here’s an idea… the sooner people break free of the “left vs right,” divide and conquer con game the sooner something constructive can actually be done. Avoid the distractions that are thrown in front of us. Keep your eye on the ball… or should I say, the bankster…
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don’t forget the “student loan bubble” that will burst very soon. The kids have been sold a bill of goods for thousands of dollars and now they can not pay back the loans, not because of book smarts but no one has taught them common sense. I drop out of college because the jobs out there i would not pay enough to pay back the loans i had. I left college and started my own business but now because of government interference i might have to give up the business too …… but then again i wasn’t raised that way…. i was rasied to fight for what’s mine, and even fight for what’s yours as long as you earned it
Today I saw some total imbecile saying that these people that keep exaggerating the state of the economy know nothing, especially these survivalists type people. Not only was this dullard totally blind to everything going around, but belligerent to those that actually have any sense to attempt to try to make through what is yet to come. Just because the stock market went up this week and the jobs report was a tiny bit better than expected, MR. ROSY GLASSES simpleton says we are all out of the recesssion and happy times are on the way. I try to become too upset with some half wit like this because they have been mind washed by the media and whomever else that is unwilling to look at the actual figures. Just atypical of the general public that is totally reluctant to even glance at some of the very extremely disturbing numbers behind the economy of the WORLD, not just the U.S.
I tell you Ken, it is the same horse manure that I saw about 2 months ago that anyone into survival of any type actually looks forward to disasters and the bigger the better. This is so they can use what they have had stored for a long time and because they can sort of say to everyone else, see I told you so. They also said that survivalists get a cheap thrill out of the largest possible disaster. I don’t know what it is why these news groups that like to target anyone that prepares, but I feel it is because those that do prepare are free thinkers with minds, and they don’t like that for people to think on their own.
This is what worries me the most about gun rights, that the news media retards would automatically go after people that are survivalists as the ONLY ones that want guns after some mass gun related deaths. The news media has already pictured survivalists as nothing but Timothy Mcveighs wanting to attack federal buildings and go around shooting anything that moves. All the while the economy goes deeper into the cess pool. This type of media stench is irritating when I see it.
There are many European politicians who see the writing on the wall. They know that a momentous downfall is going to happen sooner or later and are trying to avoid kicking the can down the road.
Many Europeans have witnessed devastation and know what it is like to survive very hard times.
An ex Australian prime Minister coined the phrase ” It’s the recession we had to have” of the early nineties economic difficulties.
There are many Euro politicians realising that shortly there will be “A Depression we have to have”. Although dreadful to contemplate leaving it to fester will only make the situation worse.
As that now notorious “BBC Trader” interview of last week made the point : The economic situation is now a spreading cancer – it will not go away trying to ignore it.
What frustrates me is this problem like most problems can be fixed. The U.S. or Europe could bring back their economy and reduce the debts and improve the lives of their citizens. Human nature generally fights the obvious. I do it you do it and politicians do it. I am sitting in my comfortable lounge chair in front of a toasty warm wood stove when I have work to do outside. I intend to sit here wasting time on the Internet until lunch time. It’s human nature to do what is easy and returns the most immediate comfort/pleasure. Politicians want to be liked but they want to be elected even more, so they will do what the lazy citizens want; That is they will tax, borrow and print money to put off the inevitable bad times and continue to hire more union workers into unnecessary government jobs and extend unemployment benefits to three years so that the unemployed don’t have to take a job that is beneath them. Everyone knows this will make the collapse worse and hurt everyone more, but no one cares because today life is still “relatively” easy. We could have been on the road to recovery today if the politicians had the courage in 2008 to take the steps that would fix the problems in our economy. We could be on the road to recovery tomorrow if the politicians would do what they should today. Eventually we must do those things or face the fate of many other countries in history which failed to adapt to new realities.
We need hard common sense leaders. There are none running for office today, our system discourages it. I am hoping there is someone out there who will step up and lead us out of this self created disaster but I’m not seeing anyone. Time will tell…
By the way I have a BS and MBA and I never got student loans and when I wrote the last check for my last class I was debt free. I wasn’t 20 years old I was 40 and in my lifetime I was out of work exactly one week before I retired. I worked for a college in my long carear and I saw students taking the maximum student loans so they could buy a nice car and live in an apartment and not at home. rarely did I see a student take ONLY as much money as was necessary for tuition and books. Who did you think was going to pay back this “free lunch”???
@GWTW; How right you are. I am afraid we are at the mercy of “the mob”, like Rome and then the French during their many revolutions. If we raised taxes (yeah I know but it wont be easy) for 5 years, closed all tax loopholes and deductions now (none), cut the budget 5% per year for 7 years, cut fed employees the same, made a flat income tax (after the 5 years), had a FIXED UNCHANGEABLE sales tax for consumption, turned medicare into free market insurance, and put anyone under 46 in some free market retirement accounts that they have to maintain, then we’d be done! If you could cast this in concrete so they couldn’t change it, it would fix it. BAM! Problem solved. Let’s go get a beer. How long did that take???
@All; This was the one scenario, that I expressed to Ken and others on another post, that worries me more than any other. Even China is in trouble and when you think about the U.S., Europe and other “premium” economies faltering, there’s no way South America, India and SEA can keep the rest of the world solvent and Africa has always been a lost cause. The pols will do what GWTW said and kick the can down the road as things get worse and worse. Every year, every quarter will be the “worst we’ve ever seen” and on and on, ad nauseum. The reason this worries me is that there is no one to fight back against. As we have seen the past two weeks the marches on Wall St., regardless what you think, this is the mob getting a start. The faceless and relentless mob. If the economy was severely depressed, where would be the law and order when no one can pay taxes, firemen, hospital ERs, etc. How would the average businesses stay open, be secure and so on. The same for the suburbs and other homeowners. A slow death spiral across the world would last a decade or even decades. How bad would crime, gangs, police and military thuggery be? Who would really be in charge? There would be plenty of people, intact infrastructure (such as it is) and nothing to constrain them. It would be like…. uuhmmn ….. Mexico. A true Zombie horde. I think I would rather be in a near extinction level event than to be in this. Even rural areas would be bad, although not as bad as the cities. If you have a squeamish stomach and want to save the world….oh well. Enjoy.
@All; What if the current “protests” on Wall ST are just a Sunday walk in the park compared to what comes next. Let’s say that after the false “surge” in spending for Christmas (as anemic as it will be) that early in the spring the downward economic spiral starts in earnest, causing REAL protests as Europe begins to collapse, and the U.S. economy turns south (more than it is now), oil goes way up and food prices skyrocket world wide. Furthermore, as summer heats up and the protests begin to become full on riots in the cities, the economy is in a full nosedive as the election season progresses to the point that in mid to late October martial law is declared (a national emergency, don’t you know), just until things settle down. A desperate, little, liberal fop of a president, a potential “one termer”, worse than Jimmy Carter, sees the political opportunity in the social ruckus and now has the “justification” to shut down the “unfair” political process and “restore order so that a proper vote can be taken at a later time”. That would create complete chaos. That would cause the collapse of American society as the public, whatever their political bent, would come unglued and coupled with the economic mayhem would make the perfect storm for social upheaval. Any takers????????