Marc Faber warns that further sovereign defaults are ahead. Dubai was just a teaser.
Starting from 0:45 in the video:
Dubai was just the tip of the iceberg. The ultimate result of the financial crisis will be not just bankrupt banks, but more bankrupt governments.
Massive U.S. economic stimulus means that U.S. bonds will one day have to offer higher yield than corporate bonds due to default risk.
China has learned one thing from the U.S. -- how to massage and doctor economic statistics.
New $100 Billion Safety net for Jobless in Works
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When govt bonds offer higher yeild than corporate bonds you have the problem of the corporate bond market drying up. Even tho the risk of govt bonds will be higher at that time the money will pile into govt bonds attempting to return yeild over the rate of inflation, which will be high(er) at that time. In addition, the perception will be that if the govt does default, it will take the entire capatalist apparatus with it, so a govt default will necessarily mean that any corporate bonds under the umbrella of that govt will also default.
ReplyDeleteThe motion right now is to flush all capital from the system into government bonds. This 'flight to safety' US Dollar rally will happen soon. What this is is the directed herding of the wealth into the govt bond market , the money will flee all other account types including money market accounts (no longer gaurenteed by the govt) and stocks , bonds, and commodities.
The effect is to concentrate all the wealth of the nation (pension funds, retirement savings etc) into the govt bond market. This way, when the govt does default, ALL the wealth of the nation will have been re-allocated to proverbial thin air in one fell swoop.
Meanwhile, gold, silver and other commodities will go down during the 'Dollar Rally'.
However, when the govt does default, overnight gold, silver and other real commodities will become invaluable. This is the big squeeze out
of wealth from the common classes. Anyone that fails to accumulate solid wealth (gold, silver, etc) will become penniless overnight.
I buy cheap whiskey and vodka for barter, and I'm not kidding. It keeps forever and its an inelastic good.
ReplyDeleteAnd when things collapse and my neighbors want a snort, I'll be the guy to see.
ReplyDeleteThat is smart. It is just sad to see booze as a survival item though. Where do you buy it? Wholesale, or just your local liquor store?
ReplyDeleteToilet paper is a good one. Packed into a bucket with a seat, you can trade it for a lot of things. People assume running water is a given. It is not.
By far though the best value item to store is water. If you have the room for it nothing compares. Costs you next to nothing and will be of the highest value. Yes, even more so than gold and silver.
I hear a lot of people say that they are broke. They can't buy gold or a lot of food, etc. Then they should store water and treat it.
People will be trading you their solid valuables for water. Or a filter that will make water safe from microbes. Unfortunately, filters don't remove poisons so nothing beats stored water. Just the rumor of tainted/poisoned public water will clear the supermarket shelves in minutes.
Mark Faber is a little too tame. He talks about bad policy and mistakes. Max Keiser is better. He tells it like it is. Theft and robbery. The criminal gutting of America by economic terrorists. Not mistakes and bad policy.
ReplyDeleteAgree with all comments. I have posted before; I have 200, round .999 silver coins, some cash, food, guns, ammo. I have 8-5 gallon water jugs. Then 2x 55 gallon water barrels in my garage. 5x5 gallon cans of gasoline. 5 cases of Vodka (liquor store purchase, good vodka and it was cheap). I started this about 16 months ago, the guns/ammo was the most expensive. Even if you dont have that much money though, just some basic food supplies/toilet paper/soap/toothpaste, etc can go a long ways.
ReplyDeleteHere is the test, look inside your house and realistically think how long your family could survive without any new supplies. Most couldnt make it past 1-2 weeks. Also some basic medical supplies and vitamins.
I was in the Los Angeles riots and a local tornado, you have no idea how fast a supermarket will get wiped out of food. Its like roaches.
you can always use most of the supplies even if nothing happens. Good luck to all, any preparation is better than none.
Forgot one item, yes water.. most of my dried food needs it, and we obviously need it to live. I admittingly havent bought one yet. However, that is my next purchase, Berkey Lite is the best deal for the money. on Ebay, they are about $140 with extra filters.
ReplyDeleteI have a big bag of weed. I will barter this for bong water.
ReplyDeleteA water purifier like Katadyn or the Lifesaver Bottle or sthm equivalent is a must have for survival, alongside Military Ration packs and canned food
ReplyDeleteYes - the Katadyn is a modern marvel. I have three of them. Even the 24oz or 32oz bottles with filter built in are great items.
ReplyDeleteAmazing that they can make a filter in-line with a straw that will stop 99.99% of pathogens.
The single #1 investment one could make for the money however is a gallon of bleach. No extras in it, just plain bleech. With that bleach you can disinfect month's worth of drinking water.
Don't be afraid of bleach. You have been drinking it via your tap water your whole life.
The other is MMS water - chlorine dioxide. It will kill everything and then within a couple hours go completely inert. You can kill any pathogen or virus in your body with the stuff.
Good knowledge here.
2:48 - That was funny! Great comment!
ReplyDeleteLets assume that it's fair to say that 80 % of us still have a jobs and spend $$$. (see UPS and FED Ex delivering lots of packages as proof)
ReplyDelete20% of us do not spend $$$ or buy "stuff".... SO what?? As long as income for the 80 pro centers is coming in the bankster worldwide will be more than glad refinance OUR national and personal debt.
You want proof......watch FRENCH champagne sales going bonkers this year and many years to follow..........SO 20 pro centers your out! 80 pro centers you better produce more champagne money or else you shall be send to join the growing 20 pro centers.
Happy Holidays!!
6:53 get your head out of the sand. Here is proof to disprove your dumb misinformed statement:
ReplyDeleteHERE
Vodka--what a great idea. You can also use it as a preservative and a disinfectant.
ReplyDelete