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No Exit Strategy
Fry sees three outcomes for the global economy and none of them makes very good reading.
“You can have lower rates and deflation, higher rates and higher inflation or the nightmare scenario of higher rates and deflating asset prices,” he said.
“If the nightmare scenario plays out as I suspect it may then the debt situation gets worse. There is currently no exit strategy and the reaction to the crisis of policy makers remains a big worry.”
As a result, Fry is telling investors to play it safe and buy physical assets like land.
“I don’t want to scare anyone but I am considering investing in barbed wire and guns, things are not looking good and rates are heading higher,” he said.
The comments mirror those of bearish Bob Janjuah from RBS, who told CNBC on Friday that we are facing big stock market losses and told investors to get into gold before G20 governments attempt to throw another $15 trillion in quantitative easing in a bid to jump start the economy.
“The policymakers' response to the crisis has been new debt and this is an old game” said Janjuah.
“Over the next 6 months we will see private sector deflation pushing 10-year yields down to 2 percent," he predicted.
"This will see the policy makers mistakenly attempt to kick start the economy and market with a global quantitative easing program worth between $10 and $15 trillion dollars.”
We have all partied to hard. Lived it up, so to speak. It's time for the party to end and reality to hit. And I think it's going to hit pretty hard. Nothing is free in this world, there is always a price to pay in the end. We've been living as if it were all free and now we are getting our comeuppance. It's time for some serious house cleaning. I just hope my one year supply of food will hold my family of six through it.
ReplyDeleteHee hee hee... We're coming for you Auric of Volt!
ReplyDelete:)
That thing is blowing more oil today than it was yesterday.
ReplyDeleteThere's a report going around Senator Nelson of Florida has confirmed that there are leaks coming from the seafloor around the BP and that the well casing below the BP is cracked and leaking.
They can't shut off the well because if they did it would just blow the BP off the well entirely. The pressure is too high.
9:00 pm : Why are you ugly and defensive?
ReplyDeleteWhat the world
ReplyDeleteNeeds now
Is wire
Barbed wire
9:08 where is that line from?
ReplyDeleteWhen I did a google of "auric of volt" the search was fascinating but not of accuracy of your line/quote. Just asking because I find truth in what you have said more so after trying to look it up.
Don't worry everyone, stay in the center and ignore risky behaviors, keep reserved and be helpful to those who become terrified when it happens.
ReplyDeleteThe best thing is for everything to crash, the larger foundation for the current world (4,000 B.C.E) has been wild and ugly; generally caused all things to be run upside down throughout. Men have ruled based on their family blood, who had the oldest age, who could look the most religious, the person who was the highest ranking officer, and of course he who controlled the most green paper squares.
All people who made real progress (teachings and technologies) have been obscured by such a backwards reality. After the destruction we will be able to establish the way of life in which he who has the most skill/brains, or she who is the wisest and most competent in judgement will allow those of a prosperous nature to give to mankind their inventions, thoughts, and work freely and without cost or penalty. We'll make the last 6,000 years and all good that was done in it seem miniscule.
Hey, just a serious question here: how many ounces of barbed wire do you recommend investing in, and is aged/rusted any better or worse than new? I imagine you get the best deals buying it by the rolls.
ReplyDeleteOk time for beddy bye. Ahh, Barb wire and guns. Sweet dreams.
ReplyDeleteI would say seriously that barb wire would be something to have on hand as well as 4x8' 3/4" sheets of plywood and many 3" deck screws.
I just love this "jump start the economy" nonsense. Tell me... how the hell do you jump start a car with a blown engine? That's my analogy.
ReplyDeleteWhere can i buy Barb wire from?
ReplyDeleteHow do you jump start a car with a blown engine?
ReplyDeleteSimple! You push start it from the top of a tall hill coming straight down the road at about 120 mph while giving the engine maximum gas.
And the bottom is the gulf of mexico.
That's my analogy.
The people who brought down the World Trade Center towers will soon bring down many U.S. cities with far more "demolition" equipment. This will be followed by complete breakdown of the chain of supply, resulting in widespread starvation, disease, death, mayhem and general lawlessness.
ReplyDeleteThe European-based, international bankers, who rule the U.S. secretly, do not like competition. Their NWO plans put Europe in the number one spot. For this to be so, they need to ensure that America never, ever rises from ashes again. An aerial attack on Iran will be the pretext.
The smart Americans have already left the U.S. for good.
He's right, there will be higher rates and lower asset prices, but there will also be high prices for every day items such as food, milk, diapers, etc. Your house will go down in value but the food and other items, including electricity and gas, will go up in price.
ReplyDeleteEveryone that is in a position to pass along costs/profit losses to the consumer - will. There is no way they are going to want to adjust to a lower standard of living, just because the rest of the world is in a depression. Reality won't come all at once, it will only come in stages. The unemployed are just beginning to accept it now as they lose hope.
BTW, this blog would make a profit if the owner put Adsense on it.