US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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Content By: The Coming Depression Editorial Staff (dates cited below)
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chinese worker holding guns

“The U.S. Department of Commerce said yesterday that it has set preliminary anti-dumping duties on refined Chinese and Mexican copper pipe worth hundreds of millions of U.S. dollars.”

You cannot create a country’s “middle-class” by “big” socialist government civil servants sustain by low wage earners heavily taxed using their beer wages to create middle-class civil servant’s “champagne dreams.”

The Western middle class has been decimated by political and business elites shipping jobs to China and as a result our government transitions the eroded mid class from a once booming manufacturing sector over to a big government bureaucrat. The little guy can’t keep funding these clowns paying heavy taxes to sustain this bottomless pit.

For years analysts have predicted that the U.S. would begin imposing trade barriers on imports from China now that China stopped buying Treasuries from the United States. There is no surprise about these recent indications because in recent auctions of U.S. Treasury, the Chinese were either absent or have bought very little of U.S. debt. It will still get much worse quickly and then inflation will follow. If you’re one of those critical of imports from China, then you will also whine when inflation begins.

The United States quickly will find they will not be able to intimidate the Chinese how they have Canada in terms of violating international trade agreements. The Chinese will not wait years for international tribunals to resolve this issue, they will simply retaliate. Given the state of the economy of the 2 countries, it is not a battle the United States can win.

May 7, 2010 (China Knowledge) – The U.S. Department of Commerce said yesterday that it has set preliminary anti-dumping duties on refined Chinese and Mexican copper pipe worth hundreds of millions of U.S. dollars.

According to the preliminary ruling, nine Chinese exporters will be charged an anti-dumping duty of between 10.26% and 34.48%, and all other Chinese exporters will be charged a preliminary anti-dumping duty of 60.50%.

china usd trade debt graph

The department will impose a preliminary anti-dumping duty of between 29.52% and 32.27% on Mexican exporters. The department said that it is scheduled to make a final ruling in September this year. In 2009, the U.S. imported US$233 million worth of copper pipe from China and US$130 million worth of copper pipe from Mexico.

Unless we wake up in the West to what has happened with China monopolizing the world manufacturing sector and supplying easy credit to keep buying their products, we’ll end up like Greece too. China is acting on emotion to sustain its country because if the people there are jobless, we stop buying their stuff – they will collapse into civil strife.

They try to ensure this doesn’t happen by supplying jobless North Americans with easy credit to keep their economy going. Sooner or later the in debt North American stops buying and communist China’s clock is ticking down.

China’s only try way to survival is to let its yuan rise so classes in its own country can develop and create a domestic economy that works in true tandem with the rest of the world fairly. If not our debt will become their nightmare too. Greece is an example of what will happen if we don’t soon deal with the China problem.

The U.S. dollar is a very flawed currency. The Federal Reserve has printed trillions of dollars in order to bailout the “Too big too fails.” At no time in history has any country been able to deal with its problems by printing money – which is by definition inflation (expansion of the money supply). Just look at Zimbabwe, Robert Mugabe’s policy of money printing has led to an annual inflation rate of over 100 million percent. Zimbabwe’s citizens have to pan for gold just to survive as their currency is worthless.

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Years of artificially low interest rates have decimated the U.S. economy. The U.S. used to be the world’s largest creditor, it is now the biggest debtor nation in world history. The U.S. is $13 trillion in debt, with another $120 trillion in unfunded liabilities such as Social Security, Medicare, Medicaid, veterans pensions, etc. Their only way to pay it off is to debase their currency through inflation – which will impoverish their citizens in the process and destroy what is left of their economy.

While all currencies are being debased through inflation (Canada included), the U.S. is expanding their money supply at a frightening pace. The only reason they’ve gotten away with it for so long is because the U.S. dollar is the world’s reserve currency. At the rate the U.S. is going, it will resemble Mexico economically in 10 years rather than a first world nation.

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