Global Economy Bursting?

[Tom Woolford]

Most Americans Say They're Worse Off Since Obama Took Office

http://www.bloomberg.com/news/2010-...they-re-worse-off-under-obama-poll-shows.html

I know I am, but all of us here know it got started in 2006.

 

[Riick]

Here we go. It's no longer a joke about the guns, ammo and beans. It was only partially a joke to begin with but it's full tilt reality now, isn't it? We are Germany in the '20s folks. But I think it's Chinese that we should be brushing up on now.

If you think we're looking at post-WW1 German hyperinflation,
what do you see as ways to hold on to what you have?
I remember from the 1970s that paper lost value, but things maintained/gained value.
You wanted silver / gold / etc., not paper money, and though during the inflation real estate did well only at the beginning,
(when the interest rates were truly negative?)
over the longer term, it was one of the great things to have invested in.

.

 

[Caterina Platt]

If you think we're looking at post-WW1 German hyperinflation,
what do you see as ways to hold on to what you have?
I remember from the 1970s that paper lost value, but things maintained/gained value.
You wanted silver / gold / etc., not paper money, and though during the inflation real estate did well only at the beginning,
(when the interest rates were truly negative?)
over the longer term, it was one of the great things to have invested in.

.

I was in junior high, but saw the effects on the real estate through my parents (bought a house in mid '75 and sold in early '77 at 12% profit) and through my grandmother's eyes who was a Realtor at the time. I remember her commenting about contracts where it wasn't uncommon for buyers to ask for as much as 3-7% buy downs. :Eyecrazy: Real estate values did stagnate in the early '80s here in NM largely due to the interest rates. Owner financing was king.

The thing about the 70's that was different however, is there was no shadow inventory nor were there declining real estate markets to start with. From what I understand, we're looking at anywhere between 3 an 5 years shadow inventory right now. Mind you, I don't think we've seen the worst of our meltdown. I look for real estate to do devastating drops coming up. I pray I'm wrong. Take a market where no one has a job, banks are failing, inflation is skyrocketing, and no one can afford a home to begin with. I really don't see a replay of the Carter years in terms of the good things that happened to property values. I'm afraid I can't wipe the scenes of chaos out of my eyes enough to see clearly, however.

Have any of you seen the youtube video called The Day the Dollar Died? I haven't seen it on youtube, but our local talk radio guy played a bit of it on his show Friday. Just listening to it, you had to remind yourself 'this is an Orson Wells moment. This is not real.' I was sitting at the computer and pulled up our IRA accounts and considered pulling the Sell All trigger. I didn't but boy does it get you to thinking. I do think I'll be going to cash before the year end.

Defense? I suppose we need to become versed on being commodities traders. Eeesh. That's always been so risky, I'd never even considered it a possibility. Now it's starting to look like a sure thing, isn't it? I'm beginning to learn the ropes on buying silver. Stocking up on food, building a chicken pen, we have a young dairy heifer we'll be breeding soon for milk and meat from the calf. I'm just trying to think of things we can become self sufficient on, and things we can barter with.

The next thing I need to tackle is how to construct red neck solar panels and fashion up some converters to send the harvested energy to battery storage, water heater and central forced air units. I know that sounds crazy, but the cost of the commercial units remains prohibitive for most of us and I really do see it coming to the need for such. Thank goodness the son in law is an electrician.

Sorry Riick. You were likely hoping for a Neil Cavuto/Toby Smith quality answer and what did you get? Granny Clampitt.

 

[Randolph Kinney]

China's Inflation Fight May Widen as Growth Withstands Tightening Measures

http://www.bloomberg.com/news/2010-...pressure-for-wen-to-raise-interest-rates.html

Industrial output gains accelerated to 13.3% withstanding government curbs and consumer prices rose 5.1%. The world’s fastest growing major economy is maintaining momentum after interest rate increases, curbs on energy consumption and a crackdown on real estate speculation. Broad money supply, or M2, rose last month by 19.5%. People’s Bank of China reported Dec. 10. M2 has surged 55% over the past 2 years and outstanding yuan denominated loans have climbed to 47.4 trillion yuan, 60% rise in 2 years.

That is what you get with bank lending; a money multiplier effect that drives inflation and output. The U.S. is just waiting for our banks to kick in the lending. Meanwhile the FED continues to buy debt, printing the money.

 

[Randolph Kinney]

Bankruptcy For City Pensions

http://newsblogs.chicagotribune.com...dermen-ask-quinn-to-veto-pension-measure.html

Mayor Richard Daley needs a fix for city pensions or he will be forced to declare them bankrupt as a way to restructure.

Chicago City Council sent a letter to Gov. Pat Quinn urging him not to sign a pension reform bill that would lead to the biggest property tax increase in Chicago history. The bill requires municipalities move toward funding police and fire pensions up to 90% of obligations by 2040, and allows the state to withhold sales tax and income tax revenue from cities that don't do so.

Quinn campaigned on a pledge to raise the state income tax thereby buying the vote of every public union worker in the state.

The solution to the pension problem is to tax your way out of them. Or bankruptcy.

 

[EDWARD BERRY]

Platt,

This Is So Interesting.

I Am About In The Same Mode.

But About Twice A Day I Say"really?"

Our Area And Culture In Nw Ark Is Similar To Yours.

Are We Nuts--or What.

Getting To Do The Silver Thing But Have No Idea How To Start.

Coins?

Arkie Ed

 

[Caterina Platt]

Arkie Ed!!

Hola, my Arkansas friend. Back in my early FHA REO days, you helped immensely. Glad to see you still hanging tough here.

Yes, I am constantly asking myself, "Am I nuts?? Will I be the fool left with all this stuff when we're on a happy road to recovery next summer?" I can only hope. I pray I can be the butt of modern day Noah jokes and such. My husband would never let me live it down if we have some hokey crappy panels fashioned out of shiny aluminum trays and recycled auto headlights up on the roof and have to pull them off. (getting a hilarious visual there??) We'd all be far better off, and I could stand losing my credibility over it.

Somehow however, I'm just not comforted with the idea of not being prepared. Austin, Randolph, Restrain, Mentor, etc., are all doing a fine job of harvesting news and analyzing the facts here, and the writing is not only plain on the wall, it's screaming at us. Even when I put my blinders on and try to ignore the Worldnetdaily nutkooks and tell myself Glenn Beck is merely an entertainer.....I'm just putting off the inevitable. It's real, it's ugly and we have minimal time left to gather necessities IMHO.

So, silver you asked. I'm barely into the learning phase. From what I gather, bullion is pretty and shiny, but the coins are probably better investments. Not the funky collectibles, but the truly minted coins. Where to shop for them, spot pricing, markup, etc. I'm very much in the newbie stages so I'm hoping an experienced person will pipe in and discuss it.

 

[EDWARD BERRY]

C.p,

Yep, That Me.
76 And Only Doing VA's And Relos.
Katrinna (sic) Took Out My Repos.

I Got A House, I Got A Car. I Got Heirloom Seeds, A Roto Tiller, Some Fuel, Tons Of Compost, A Well, A Christian,
So Let Er Rip.
Cant Be Worse That 1940's.

 

[Big ole Boy]

.

So, silver you asked. I'm barely into the learning phase. From what I gather, bullion is pretty and shiny, but the coins are probably better investments. Not the funky collectibles, but the truly minted coins. Where to shop for them, spot pricing, markup, etc. I'm very much in the newbie stages so I'm hoping an experienced person will pipe in and discuss it.

you could not be more wrong .....

.... buy "junk silver" ..... that is buy silver dimes that are not very pretty but they contain 90% silver ....... stay away from "pretty" newly minted coins ........ buying metal is not like buying fancy clothes ......

...buy the metal....... in the coin that was produced years ago that has a known content of silver in it .....

... this way by buying the small increment of a widely held coinage .... value is more easily transferred in small increments ..

...right now ...the last time I checked an old silver dime with no nuismatic value is worth about $2.00 ...

...... my wife just bought a buch of metal ...... she paid too much ..... women for some reason have limited reasoning powers when it comes to buying metals ....

....

 

[Randolph Kinney]

Bond Yields Surging Again