Monday, August 16, 2010

No Double Dip. It Will Be A Lot Worse

No, there will be no double dip. It will be a lot worse. The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. Nevertheless, governments will continue to print since this is the only remedy they know. Therefore, we are soon likely to enter a phase of money printing of a magnitude that the world has never experienced.  But this will not save the Western World which is likely to go in to a decline lasting at least 20 years but most probably a lot longer.

The End of an Era

The hyperinflationary depression that many western countries, including the US and the UK, will experience is likely to mark the end of an era that has lasted over 200 years since the industrial revolution.  A major part of the growth in the last 100 years and especially in the last 40 years has been built on an unsustainable build-up of debt levels. These debt levels will continue to swell for another few years until the coming hyperinflation in the West leads to a destruction of real asset values and a debt implosion.
In the last 100 years the Western world has experienced a historically unprecedented growth in production, in inventions and technical developments leading to a major increase in the standard of living. During the same period government debt, as well as private debt have grown exponentially leading to a major increase in inflation compared to previous centuries.
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  1. Eh. I enjoyed the article until I got to the bottom. Looks like they are just trying to scare us into buying gold. Their motives, of course, have no bearing on the truth behind the article. It just rubs me the wrong way.

  2. 12:23 I know it's tough to escape fiat money. You would rather have fake paper as opposed to money that has been used for thousands of years. Motive is for you to get rid of the media/government induced coma you have been in, your ENTIRE LIFE.

  3. Sounds like the author read "Aftershock". Many of the same points, but they see it as a good thing. Aftershock economists believe it's an evolution of currencies. Starting with rocks/shells, then bartering, then silver/gold, then paper and finally...electronic money. They will be happy for the final stage figuring it will save fraud and theft. Hardly. It's about CONTROL. Controlling YOU.

  4. Oh bullshit! On any given day doing your usual downtown stuff- groceries, gas, cigs. bla bla you know, the usual sheeple stuff-I would rather have a cash bankroll of $1200 in my wallet than a 1 ounce wafer of gold. In my little depressed BC town of 90,000 I would be hard pressed to find anybody-anybody that would take it. Banks won`t buy it, jewellers won`t buy it-how do you convert it if you need quick cash? You will find exactly NOBODY on the street that`s got $12 cash on em let alone $1200! You can sell it alright, but you have to send it down to the coast (Vancouver, say) to some fly by night hole in the wall assayer that would take $400 off the top for assay fees, reg. with the fed. yadda yadda, and whose to say you will even see a cheque? C`mon guys, let`s get off this highroller gold pipe dream and get real! I would much rather have a fistful of pics of the Queenie anytime-cash is still (for now) your friend!

  5. ha ha ha 157
    good luck

  6. 1:57, the answer is the buy STUFF. Buy anything you want while your money still has value.

  7. All these governments have bills coming due at the same time, and they'll print money. Which will lead to a financial collapse. It's happened before and it's happening now.

  8. gold is for adults
    paper is for kids
    good luck kids

    october is alomst here.

  9. I meant "to buy stuff". Food, guns, bullets, anything at Wal-Mart that is cheap NOW that won't be in the future- stuff you'll need, stuff you want. The problem with gold is it's already to high. 1200?? Come on. It should be at $700- the price of a nice tailored suit. The gold ship has sailed. Where were these guys 8 years ago when I could have done something about it?

  10. 1:57 you live in a delusional world created by the corporate elite. Of course you would rather have paper play money. It makes you fell good. I sold a property in 2000 and put it all into GOLD. Guess what? I still have the "money" I guarantee you have nothing from 2000. EXCEPT DEBT.

  11. hahahahahhaha
    700 dollars an ounce
    why not go back to 1980s
    sorry 1200 an ounce is cheap try 2200
    when the market slides gold will fly
    and inflation will rule
    buy silver why its cheap youve been warned
    now stop whineing
    time is short

  12. 2:15 I read the same stupid posts when GOLD was $600. Gold is TOO HIGH. Dumb posters by the dozens here. When its $2000 the dummies will be saying the same thing as they clutch their useless fiat paper close to their hearts.

  13. 9 out of 10 americans dont own gold.
    i talk to them thanks still buying cheap.
    the beeches are broke whiney and screwed and tatooed.
    and one day will lose it. they laugh at me.
    but i will laugh last.
    we attack iran oil will triple
    inflation will come quickly everything
    aug 21st
    the wheel spins

  14. Here's something for all you to ponder: Food shortage. Let's say one guy uses 1200 to buy a Golden Eagle and the other guy uses his 1200 to buy a Glock at $550, 10 boxes of ammo at $20 each, a water purifier, solar battery charger at & batteries $75, a shortwave radio and 10 25lb bags of rice at $8 each, and spends the balance on whisky & rum.

    After the big crash, who is better off? The guy with all that stuff, or the guy holding the coin? Sure, the guy holding the coin will be able to sell the coin once everything settles down in a few years/ decades.
    But, when the SHTF and people are starving and rioting, what do you think the going rate will be for essentials? If you ask me, a gold coin for 50lbs of rice sounds fair. For a Glock? maybe 5 of your coins will be enough. Ammo will cost you extra.

    Not all of us have enough cash to "just buy it all" Decisions have to be made. Choose wisely.

  15. 2:15 is right! Doesn`t it strike you goldheads out there that the price has risen a little TOO quickly? Did not the same treadmill start on it`s wobbly path with REAL ESTATE? Talk to some of those poor folks in Detroit that had high aspirations-hardworking honest folks that years ago sank every cent they had into a nice place that now you can`t give away! I think even 700 bucks is too much, myself, and I think you dreamers are being taken in by the fast talking smoothies out there. Those assholes would sell their grannies silver set for a buck. You`ll be waiting till the last cowpie in the barnyard turns to dust before your ship comes in, I`m afraid.

  16. 2:37 GOLD has always held up during crashes. Look at the latest Zimbabwe crash. They were panning for GOLD to buy food. Burning cash to start a fire. Does that show you what's coming?

    Amazing how people are memorized by their GOVERNMENT!

  17. Uh, make that 2:53 as well- he`s right bang on too! Good job, guys!

  18. 2:53 GOLD has been rising for approx. 10 years. The dollar has been COLLAPSING for almost 90 years. Does that tell you anything? DOLLAR is down almost 90%.

  19. ...and 2:37 too! lol

  20. Yeah, when the SHTF, you come to me with a gold coin wanting to buy a loaf of bread and I would say, you can eat your gold. What good is gold when you can't buy food with it because there is no food on the shelves? Prepare your homes now. 1 year supply at the minimum.

  21. 2:59..again go back to ZIMBABWE or ARGENTINA! GOLD for FOOD all day and everyday. They have been Trading it for 1000's of years.. don't you DUMMIES GET IT? Are people that stunned out there?

    I'll Answer that: YUP.

  22. Soon enough you will learn. 8.25.10

  23. The difference between Zimbabwe and this time around is that this is global and no country will have paper currency when the dollar dies.

    Zimbabwe also has normal people living there. The United States is now filled with psychotic, television obsessed people who are going to become incredibly violent when their spoiled little lives of collecting worthless crap comes to an abrupt end.

    If you guys with gold can find a private jet and a pilot who can fly you out of here then maybe your gold is worth something. If not then stay inside and don't come out telling people about your great investment, unless you want to get shot.

  24. 4:00 if the collapse happens overnight, perhaps. But do you notice the slow fall from grace? As the article states it's a 20 year downfall. Within that time GOLD will take over slowly, as it's doing in MANY COUNTRIES!

  25. Gold has Peaked in value. Now, I didn't say it has peaked in "dollars" just in VALUE. From here on out, any big increase you see in the price of gold just reflects the decreased value of the crashing dollar.

    Example. Today, you can buy 1 ounce of gold for $1200 and say, 1 nice Rifle at $1200. When inflation hits, sure, you will be able to sell your gold for $2400, but now $2400 will still only buy you 1 nice rifle, not 2 because inflation has taken the dollar value of the rifle up with it.

    You fiat bashers can't have it both ways, saying that fiat will be worthless, but your gold will be worth xxx of hyperinflated dollars. Gold is gold and it will be worth the same after the big crash... in my humble opinion.

  26. Stop it with the August 25th crap. As I've asked in the past post, explain it or it's a sham to me.

  27. That's why land is always worth the most. Land will always have value. Hence why the government is trying to take as much of it as possible now.

    You want land, food, guns and ammo right now. You'll want as much stuff as possible to be self sufficient. One person won't be enough either, so the smartest thing to do, if at all possible, is to get a bunch of land out in the middle of nowhere that you can farm/ranch, move your family and a bunch of other close ones there, get guns, ammo, a generator, etc.

    If you truly believe that there will be a real, big crash, then this is what you have to do. But nobody will do it, because people don't really believe it's going to happen.

    How many people on here even have a gun? How many people here have a generator? If everything goes to shit how do you expect power, phone and all of that to still be functioning?

  28. 4:20 that's because you don't have a clue how GOLD works. As Jim Sinclair or Alf Fields or Armstrong in prison to wake your senses up.

  29. Good points 4:00 and 4:20- The wise man was right: a pig with lipstick on is still a pig.

  30. I guess that's why 99% of the American public don't have GOLD by the dumb statements above

  31. This is 2:37 here...

    The GOLD information I've read states that GOLD (why do you guys capitalize it all the time, anyway) has, throughout the centuries, held its value. The SAME VALUE. They say for example that hundreds of years ago, an ounce was worth the equivalent of a tailored suit, just like it is today ($1200 is an EXPENSIVE suit, if you ask me. That's why I think it is currently overvalued.) So, how is it "dumb" to say that 1200 is it's peak "value" and that any other increase is just perceived because it is actually the crashing dollar that is making it seem more valuable?

    So what if gold reaches $10,000 in inflated fiat in 1 year? That same $10,000 in fiat will buy in a year what $1200 buys today. It's a WASH.

    Look, if we go into a depression that has an ending in the near future, there is nothing wrong with having gold. Lots of gold. You'll probably come out ahead, especially if the dollar crashes and you can exchange it for "new dollars" or whatever they plan on calling them.

    But what if the S really HTF? We have food sky high gas prices, food shortages, hyperinflation that makes working at a power plant or supplying it with fuel pointless? What if joe water-treatment-plant worker decides to stop going to work because they pay him in useless dollars? Hungry people rioting in the streets. I'm talking systemic failure. Maybe of-and-on, maybe constant. Then what good is your gold then? What if this lasts for years? Decades?

    My point is (as I made at 2:37) use your 1200 to buy something useful like extra food and other supplies. You will be AMAZED at how valueless your gold coin will be to someone who has a limited supply of food to barter. He has to think- "Do I risk selling some of my stock and bank on this hell ending soon, or do I hang onto everything I have because I don't know if it will continue or get even worse?" He may also think- if this hungry goldbug will give me a gold coin for 50 pounds of rice today, then maybe someone else will give me 2?

    Back to current reality. Most of us have a limited amount of extra money. Spending it on a few gold coins is a big gamble. You are banking a depression, and not a SHTF scenario as described above. Is it worth the risk? Maybe to you, but it doesn't make other people "dumb" for spending their money on more useful things.

    Also, what if gold goes DOWN. Gold bugs don't mention that very often. Could this happen? Of COURSE it could. Right now, physical gold is tied to paper gold. If the stock market crashes, it may very well take paper gold down with it... for a short time anyway. THAT would be the time to buy physical gold in my humble opinion.

  32. Seeing a lot of comments on Gold, but none relating to the US$ as the world's reserve currency. If the US$ hegemony is lost, and oil is priced in other currencies, you will see shocking things happen to the price of Gold in the US$ WITHOUT inflation. Consider a possibility of gold breaking free and being repriced. Everything is a possibility. That being said, I have plenty of gold, but I just picked up 300 more rounds of ammo. hehehe

  33. Why gold? It's portable. It may save your life getting you & yours out of the country as payment. When the US dollar is worthless, you can exchange your gold for other currencies - OR - for that one world currency that is planned for everyone. But is it the most important thing? NO. Food is. Guns, if you can hang on to them for they will be taken and you will be a criminal if you don't hand them over. Even your land may be taken through taxes you won't be able to pay. As for the decline, it will not take 20 years - it will LAST 20 years, a MEGA-Depression.
    Understand, this is not about gold being better or equal too anything else. It's about what you will need to get through the coming years as laws and individual liberties are changed. The powers behind fiat currencies see the collapse of the US dollar as EVOLUTION to a better electronic system of controlling how you spend your money. Stop the bickering toward gold-bugs/non-gold-bugs and get your house in order. You will be lucky if you can hang on to it. Gold is the backup when you have to leave. 1:52

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  35. The twelve million Americans in manufacturing jobs today generate 1.7 trillion dollars of value and that accounts for 18% of world manufacturing value.

    America is far and away the world's largest manufacturer and has by far the world's largest economy.

    In other words, a little over two percent of the people in the world, assuming American efficiency (Which hasn't happened yet) are producing all the manufactured goods in the world.

    The rest of us can sit, draw unemployment, start a garden, watch tv, learn a real skill and get a real job cuz the $75 an hour lug-nut tightening positions are all off shore, sleep, take a walk, or just about anything they want but make a living and own a house or car.

    I feel like dancing.


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