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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Real reason for electricity blackouts hitting southern US

Real reason for electricity blackouts hitting southern US

“Large oil companies have for a decade artificially shorted the gasoline market to drive up prices,” said FTCR president Jamie Court. “Oil companies know they can make more money by making less gasoline.” The following article was written by Paul Joseph Watson. He is t

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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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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

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Canadian government admits recovery never happened

Canadian government admits recovery never happened

“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. "Most of us were shaking our heads in disbelief early last year w

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How Western society is brainwashed and crumbling

How Western society is brainwashed and crumbling

"The cultural embrace of illusion, and the celebrity culture that has risen up around it, have accompanied a growing system of casino capitalism, with its complicated and unregulated deals of turning debt into magical assets, to create fictional wealth for us, and vast wealth f

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Will we see double digit interest rates from the 1980s?

Will we see double digit interest rates from the 1980s?

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." -- Thomas Jefferson Spending is

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Greenspan: credit crunch “by far the greatest financial crisis”

Greenspan: credit crunch by far the greatest financial crisis

Greenspan said that while the economy was in worse shape in the Great Depression, the recent financial crisis was potentially more harmful than that in the 1930s because “never had short-term credit literally withdrawn.” Greenspan just said that the current credit crunch

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bernanke cookie monster strangles taxpayer

“Investors should be preparing for a financial “cliff-edge” as the Eurozone and the US prepare for “monster” money printing exercises, according to RBS.” –MM

In a note to investors last week, RBS head of European rates strategy Andrew Roberts tells investors to move to government bonds and gold in preparation for a second global dip.

He says: “Be maximum long duration of nominal government bonds in safe haven markets. This means US, UK, Germany, in that order, and perhaps others. Be long gold. Think the unthinkable.”

Roberts says another banking collapse in Europe coupled with deflation in the US will lead to “dramatic turn downs in valuations”.

He says: “This may finally destroy the world’s worst cult: the cult of the equity, which has no basis in fact, or history, but yet seems universally accepted. This all sounds somewhat doomsdayish, so we should update how the real economy/banking is panning out for us. It is saying: the end-game approaches.”

Roberts also warns that the US Federal Reserve may be considering a “monster” quantitative easing programme in an attempt to keep bond yields at around 2 per cent.

He says: “We have been wrong before, but we think the risks associated with us being wrong are low but the risks associated with us being right are more than 10 per cent returns in 10-year US government bonds at the same time that equities/commodities will collapse far beyond what even some equity bears anticipate.”

US Dollar: the next Great Bubble?

The next great bubble is the US dollar hands down. There in no disputing this. When you see an economic stimulus plan that is over 50% of GDP it should make you cring at what inflation will bring in five years. The US has a 14 trillion GDP that is shrinking and in 07-08 a 1 trillion loss then Obama is expecting a 2.2 trillion loss for 08-09 and 09 -10 a 3.79 trillion loss. That is very creepy to a bond trader.

Now the rest of the world can see the big big problem of the US dollar being the world currency because all commodity are traded on the US dollar. When oil was at $147 per barrel it was because the US dollar had failed. In Euros oil was still only $75 per barrel. Grain like wheat was the highest Canada has ever seen with fall of the US dollar in August 08.

The entire world recession is because of the US Dollar. What happens when the US dollar is worthless and oil is $2000 per barrel? The world needs another world currency.

If you own a business that had a income of just the taxes generated on 14 trillion and had a debt of 16 trillion. Way way more debt than income how long would a bank keep your company’s debt on the books when you could just cover the interest with all your income?

It was projected by top economists of the world that the US debt to GDP would be equal by the year 2011 and now with the economic problems it is going to be this summer.

All in all if there is not a new world currency expect to pay much much more for every thing traded in US currency. $147 per barrel for oil will be nothing to what will cost. At $147 the volume traded was the same as it is now. Do the math.

Related posts:

  1. Central banks start to abandon the U.S. dollar“.. just last week, the United Nations released a report concluding that the dollar should no longer be the world’s reserve currency because it is not stable enough. The dollar...
  2. US economy on life support, money printing is wrong: Author“The Monetary Theory of the Great Depression is incorrect, however. Consequently, the Fed’s Quantitative Easing policy is more likely to exacerbate than resolve the global crisis,” Duncan argued in an...
  3. Central banks begin dumping dollars; Bank runs beginTo sum the entire stories at the bottom: TAKE ALL YOUR MONEY OUT NOW and invest it in silver bullion, or keep it under the mattress. The press and financial...
  4. Sen. Bernard answers if the US Federal Reserve is the world’s central bank“Senator Bernie Sanders asked the question, “Has the Federal Reserve of the United States become the central bank of the world?” on discovering that the Fed, after receiving billions of...
  5. Federal reserve touted as “central bank of world”“We’re talking about huge sums of money going to bail out large foreign banks,” said Senator Bernard Sanders, the Vermont independent who wrote the provision in the Dodd-Frank Act that...
  6. We’re in a bond market bubble“Depending on the size of the asset purchasing program during the November 3rd, 2010 FOMC meeting, a large QE2 could push bond yields higher and push prices lower over the...

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