Sunday, January 23, 2011

Great Depression, Debt and Economic Decline: Ireland, Portugal, Greece, US, UK

We have two economic and financial Americas, one of poverty and advancing poverty and one of sumptuous wealth. The top 20% own 93% of financial assets, which could be the seeds of upheaval. The average family is one or two weeks away from starvation and debt collapse. How do you make up the difference working 34.3 hours a week as gasoline rises from $2.50 to $3.50 a gallon and the price of food advances 50%? If you do not own gold and silver related assets to offset these increases you are just plain screwed. If QE2 isn’t translating into recovery then QE3 is fast on the way. It will be kicked off later this year or in 2012. It won’t work either. Throwing money at a problem never has a positive desired result. Even though other nations have problems the dollar will remain under pressure. The gauge should not be the USDX. It should be every currency versus gold and silver, which are the only meaningful yardsticks. For two years gold and silver have been propelled by a flight to quality. A primary fight between gold and the dollar, which obviously gold has won hands down and will continue to do so. Inflation hasn’t even entered the equation yet, but it will this year and next. That will cause gold and silver to roar to the upside along with gold and silver shares. The elitists who control government are about to lose another battle and in the end the war against gold and silver.
Since 2000, when we began recommending gold and silver related assets after having exited the stock market in early April, the market is down about 80% versus gold. That means the only reliable guide to value is gold, not the dollar. The dollar has dropped from 13.80 Mexican pesos to 12.00 in a year. Mexico is considered a second world nation and its currency is appreciating versus the dollar. That is becoming typical and will continue to be so. The Mexican economy will grow 4% in 2011, and will have 4% inflation, far better results than in the US, and Mexico has not stimulated its economy. Not only do we have the dollar falling 20% versus gold annually, but also we have the dollar falling versus inferior currencies. That means creditors of US Treasuries are receiving a negative return of over 6%. What can they be thinking of? This is a form of default. Even with these conditions the stock market reflected by the Dow will probably trade between 10,000 and 13,500, while gold and silver again gain a real 20% plus, year after year, as long as budget deficits climb.
More Here..

Dallas Fed President Attacks Ron Paul 

American Arrested in Mexico for Carrying 150 Gold Coins; Coins Seized


  1. From the article: "The average family is one or two weeks away from starvation and debt collapse."
    That's a little extreme, isn't it? No doubt many families are in this situation, but "the AVERAGE family" one to two weeks from starvation? Hardly.
    Let's be a little more realistic, or everyone will have a good reason for saying we are exaggerating. We're not Argentina yet.

  2. 10:48 U WATCH TOO MUCH TV!

  3. Everything is wonderful in the US, nothing to see here. <- What the average sheeple thinks. Those in the know are prepared. The rest of the MTV watching, lady Gaga loving population has no idea of reality....

  4. 10:48 absolutely the average American family is one to two weeks away from starvation. It was articled on this blog, if you follow it, a few months ago.

  5. I guess it depends on your definition. If the Average person stopped eating completely today, then in 1 two 2 weeks, they would be near starvation. How likely is that? Is the Average citizen on food stamps?

  6. I would say that some people are close to the edge financially. I have seen many changes in the last 2 years. Just in the last years I have seen family and friends taking a hit. One got caught stealing a bottle of Vodka. She never drank until recently. Then two others were laid-off from their jobs. One friend is filing for bankruptcy because of medical bills (lyme disease ?? )... So YES, things are getting bad fast.

  7. Remember, the article say they are 1 to two weeks away from starvation. Not they "will be". It says they "are" as in, right now. I don't see that. I could buy 1 two two weeks form being broke, but not starvation. We do have safety nets in this country. Food stamps and shelters.

    Yes it's bad. That is why I come to this site. But saying that the average American will starve in 1 to two weeks is a little bit over the top.

  8. To 10:48 and others...

    Regarding the starvation comment…yes, it’s true…the average family only has enough food for 3-5 days and if you rationed you could easily make 2-weeks. This assumption was based on immediate cessation of money/markets for example:

    If an EMP took out the internet all electronic purchasing would come to an abrupt halt. Most Americans rely on “plastic” with most having less than $50 in their wallet or purse. I am reminded of a woman in a Donut shop that paid for here $2.95 order with a card because she didn’t have cash…not even $5 bucks in here purse. We are so used to buying “what we need, when we need it”! Having spare provisions to most people is having an extra gallon of milk…not 2-3 months worth of food. Take a look in your kitchen or pantry shelves and ask…how long could I live on this? Chances are your shelves are loaded with chips, peanut butter and spaghetti sauce with an occasional cream of mushroom soup can here & there. We really are prepared for a long term disruption in services and we should be…

  9. To the article above I meant to say:

    We really "aren't" prepared for a long term disruption in services and we should be…

  10. Most Americans rely on “plastic” with most having less than $50 in their wallet or purse.

    Ever since the '08 meltdown, I keep over $500 in my wallet and $10,000 in the house.

    Eric deCarbonnel on food:
    Conclusion: With food prices still spiralling higher, there is nothing that can save the dollar from the imminent mass liquidation of foreign exchange reserves.

    Conclusion: Faced with the threat of food riots and violent revolution, central banks around the world will soon start dumping the foreign reserves to appreciate their currencies and bring down domestic food prices. This will collapse the US treasury market and the dollar. All hell will break lose…

  11. Remember a few years back when the power grid of nearly the entire country collapsed?

    I was living in the Palm Springs California area. It was summer time in the desert. The daytime temp was 115 degrees. It was hot!

    We were all sure the power would be back on in no time. No time, stretched into hours. My neighbors and I were hot and bothered. One suggested we go to the market and buy some drinks... till we realized the market had no power too.

    - No power to keep the food and drinks cold
    - Melting ice creme
    - Everything else slowly warming up
    - The cash registers were not working
    - The store had no lights

    Then the sun went down.

    "Lets go buy some batteries for the flashlights". "I'll need to buy some gas too, my car is running on fumes".

    Without power, the pumps at the gas station did not work.

    Without power, debit and credit card sales were not possible. We had little cash between all of us.

    We all sat outside, in the dark, waiting for the power to come back on. It was NOT fun.

    I'd like to say I'm prepared for anything.

    - My neighbor has a gas powered generator, but it has not been fired up in many months. I have about half a gallon of gas in a can that could be spoiled. We are not prepared.

    - I have enough food and water stored for at least 3 months, six if I'm really careful, but I still have no way to cook it if the natural gas supply is interrupted. I am not prepared.

    I keep a close eye on food prices and yes, they are rising. Last week a 50 pound bag of sugar was $28.00 at Sam's Club. That same bag is now $30.00, a two dollar increase in ONE WEEK!

    I have water in 5 gal containers and in bottles for drinking and cooking. You'll still need water for bathing and other needs, so I clean and fill any plastic or glass container I have with tap water and shelve it. Juice bottles, soda bottles, liquid soap containers, they all work for "other" water.

    Get started now.

  12. prep and do some practice living without luxuries like electric, nat gas and piped water, learn by trial and error in all seasons. people been living without today's luxuries forever, we'll have to relearn. if in practice you find your area is sparse for such living then consider moving. it isn't so bad, maybe find doing honest work with your hands has it's own fulfillment :))

  13. Most people I know have enough food in their home to last the family 1 maybe 2 weeks at the most. I know some who literally have no food in the house. If tomorrow a disaster disrupted everything the stores would run out of food in 24 hours and a lot of people would be in deep trouble.

    Also I took the meaning of "starvation" to not mean within seconds of dying but to mean have not eaten, have no food and no way to get food. This would be the beginning of starvation if it goes on for 5-8 weeks you will die.


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