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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unity currency

According to Harry Schultz and many other economic analysts, there will be a collapse of the US currency and embassies should purchase local currency to last at least a year. This led to rumors of holidays and runs on banks and other rumors.

As you may know the Fed has had a huge program of currency swaps which corresponded with the weakness of the USD, which is conducted rapidly and may lead to new lows in USD. This could lead to new lows in USD and possibly trigger a currency crisis and, as it has been said repeatedly, the Fed is not willing to defend the dollar. However, it is unlikely that it will even cause a complete collapse of the currency. It will probably cause foreign buyers of US debt to sit on a few auctions, we call these Treasury auctions ‘failure’ auctions, with a new floor in the U.S. to trigger a collapse of our currency.

After all, it has happened in the case of the Argentine currency collapse of 2002 when their currency was defaulted and replaced with a new one because they could not pay their external debts. The Argentine economic crisis was a financial situation that affected Argentina’s economy during the late 1990s and early 2000s. Macro economically speaking, the critical period started with the decrease of real GDP in 1999 and ended in 2002 with the return to GDP growth, but the origins of the collapse of Argentina’s economy, and their effects on the population, can be found in action before. As of 2005, arguably the crisis was over, though many challenges remain for the country.

So, this is not as what you would call a “conspiracy theory” as it has happened before, but if it happens to the US dollar, the entire world economy would collapse.

October ‘Crash’ Still on the Way: CEO
By CNBC

Back in July, Enzio von Pfeil, chief executive officer of EconomicClock.com, predicted a stock market crash in October. On Wednesday, von Pfeil reiterated his forecast, saying: “It doesn’t have to be a calamitous crash. But I do think we’re heading towards something. One sees that the market’s become a lot more ‘toppy’. It’s stopped going up and up and up.”

This Earnings Season Won’t Be as Dazzling

The worst of the earnings results will come out of labor-intensive and consumer-led industries, according to von Pfeil.

“The key earnings surprises will be in those industries which cannot keep on cutting workers,” he said. “In other words, the basic materials and the very labor-intensive industries, like the car industry that very much have already gone through their cost-cutting exercises.”

The U.S. will have the worst earnings results, closely followed by Europe as problems in the housing sector and consumer sector remain. But von Pfeil warned that Asia will also be affected by the earnings news from the West.

China Won’t Save Us

Another reason for von Pfeil’s bearish prediction is that he has a “feeling that there may be some kind of a knee-jerk policy response in China. Given China’s global role, could very well lead to some very severe downward market surprises.”

“I do think that the Chinese growth story is a little bit of a tin drum that is understandably made to look very good,” he said, adding that he doesn’t believe so much in the positive growth numbers and outlook for China as he sees labor costs rising.

“I don’t believe that China, with a per capita income that is a fraction of America’s, is actually going to pull the world out of recession,” he said.

You can view the full article at CNBC

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