Skip to comments.The Great Collapse Has Officially Begun
Posted on 08/21/2011 2:43:16 PM PDT by Nachum
Ive been warning of this for well over two years. My primary warnings were:
1) That 2008 was just a warm-up 2) That the REAL Crisis had yet to unfold 3) That the REAL Crisis would make 2008 look like a picnic
Well, the period Ive been warning of is now here. Whats happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.
Instead, this is a collapse of the entire US monetary and political system and the mentality of spending ones way to wealth.
For 80+ years, the US has operated under a crony capitalist system in which politicians dole out political and economic favors to the chosen few whose bribes/donations funded their campaigns.
This system was aided and abetted by the US Federal Reserve, which dealt with any and all economic issues by printing more money. Whether it was the Asian Crisis, Long Term Capital Management, or the 2008 Crash, the Fed dealt with the issue by opening the floodgates and flooding the financial system with liquidity.
Aside from making moral hazard (the notion that those large firms who screwed up were never actually allowed to fail) the bedrock of the financial system, the Fed also blew a credit bubble which in turn funded bubbles in virtually every asset class: bonds, stocks, real estate, emerging markets, even some commodities.
(Excerpt) Read more at zerohedge.com ...
The entire Western world will need to wake up to this.
Remember...never accept the mark.
Another gold bug article, I’m sure, if you ‘click to receive the free 9 page investment report’.
People have been saying this since 2008 ... before that even.
So far both parties have been successful at:
__ sweeping things under the rug
__ kicking the can down the road
__ blaming each other
Bring it on already.
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I’m holding out for the Cadillac El Dorado. I think I can win that sales contest this month.
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I think that's true. Reagan's tax cuts, Clinton's capital gains tax cut, and Bush's tax cuts were all good, but the spectacular growth after each of them was probably due more to Fed money-printing. Don't get me wrong, the tax cuts were well-designed and necessary, but probably wouldn't have resulted in the growth figures we saw absent the funny money.
Actually, the report IS free and it does not hype gold at all.
Why are more people working for the government than in the private sector? I want to describe what I call the political money cycle. It is the Mother's Milk of Big Government.
It is getting frightening the extent the monster of Big Government has grown. I want to describe what I think is the workings of the government political money cycle. It describes the public union/representative symbiosis as well as the huge lobby industry. It applies to both Democrats and Republicans:
The peoples representative enables government contracts and grant money to go out to a body of recipients. These contracts and grant money, of course, represents your tax dollars. The recipients of this tax money, to insure continued receipt of contracts or grant money, send campaign contributions back to their political benefactors. It cannot be emphasized enough that such campaign contribution kickbacks are in actuality, your tax money being recycled back to the representative. What they represent are an incentive to the politician to increase the cost of government so that the flow of these kickbacks can grow. This money is called the politicians War Chest. Lets take a closer look at the War Chest.
The War Chest is that sum of money, from political kickbacks and donations from the electorate. This sum of money does not sit in some bank until it is spent on the cost of a campaign. No, this money is being invested in the money market. Usually, the politician has good advice from his friends on where to invest that money. You can be certain that these War Chests are much larger than the amount accounted by the Public Disclosure Reports. In fact, over the years a politician is in office, they can amass millions in market growth. This the true power of the incumbent. It makes the idea of being in office without term limits a very lucrative business. It cannot be emphasized enough that all of this wealth generation is from tax money and donations. All of that money is an encouragement to the politician to grow more government and increase the level of taxation for their own personal wealth. Personal wealth? Yes, all the politician has to account for is what is stated by the Public Disclosure Reports. The wealth generated by that money is between public official and the IRS. I emphasize that the publicly stated value of the War Chest is not the true value of the War Chest. I am not even certain if that money needs to be reported to the IRS. I can imagine these politicians have a law that makes them exempt. Some Freeper out there may know more about that.
The more I think about this political money cycle, the more concerned for this nation I become. I hope it provides something someone can chew on and think of a way to break this political money cycle that encourages runaway government spending.
Exactly! I tune out as soon as I hear the desperate and overused marketing word "REAL", especially in ALL CAPS. :-)
May be true but I wish for once, these folks that cry gloom and doom would do it for the good of others as opposed to making a buck. I would trust it more because you can be sure if I saw a tidal wave approaching, I would warn folks for free.
“Knows English, Spanish, Chinese”.
I’ll bet she does, I’ll bet she does, know what I mean, know what I mean, I’ll bet she does, bet she does!
I’ll see your “Ill bet she does, know what I mean” and raise you a “nudge, nudge, say no more” ...
Look, are you insinuating something?
What problem?? If we need more money, we’ll just print it. We’ve got plenty of paper and ink.
Someone needs to develop a computer program that let’s us print our money as we need it. You know, like the stamps.com web site that prints the stamps on your computer printer. We could just log into the U.S. Bureau of Engraving and Printing web site [moneyfactory.gov] and print what we need on our own printers.
Oh, no no no no ... yes.
That's only if you measure by GDP. If you correct for the "deflationary" effect of technology -- which allows you to do exponentially more for exponentially less -- there's a lot of real growth out there. But not enough, of course, to pay for all the government Ponzi schemes.
Yet, I do see a ray of hope: the rise of the Tea Party movement. Building on the spirit of the people who got tired of an intransigent government before the American Revolution (in that case King George III and his cronies in Parliament), the Tea Party movement has finally forced many Americans to realize that there needs to be MANY changes in government if we are to continue to advance. There is--in my humble opinion!--only one potential Presidential candidate that clearly has a stand akin to the Tea Party movement: Sarah Palin.
I expect Palin to announce her candidacy for the Republican nomination for President on September 3, 2011, and it will be the start of perhaps the greatest grass-roots political movement in many, many years, one that will sweep the nation with surprising speed. It will indeed be the ultimate revolution by ballot box, in my estimation.
Its clear as a bell that at the very least a Double Dip is coming up and I aint talkn roller coaster or Baskin Robbins!
I think that we are in for something like the collapse of Argentina ( http://www.youtube.com/watch?v=7yerKMQc7-w&feature=grec_index)but from the look of things it may even be on a global scale. Additionally I think we will see a much more violent version. As recent events show (Flash Mobs, UK riots, etc)we have a larger entitlement minded population and a the US has a much more violent and armed population than Argentina. I see many many small business wiped out by flash mob looting, and see rape, robbery and murder for murder sake. Many of these yutes will think no more about killing you than most people think about stepping on a roach. That will be the test of many. Most preppers I know are Christian people and they will hesitate to do what they might have to do to stop the yutes. On the other hand the yutes wont think twice nor lose a minute of sleep, in fact they will smile and laugh about it.
Think of this quote which is one of my favorites:
Star Trek: Deep Space Nine: The Siege of AR-558 (#7.8) (1998)
Quark: Let me tell you something about Hew-mons, Nephew. Theyre a wonderful, friendly people, as long as their bellies are full and their holosuites are working. But take away their creature comforts, deprive them of food, sleep, sonic showers, put their lives in jeopardy over an extended period of time and those same friendly, intelligent, wonderful people... will become as nasty and as violent as the most bloodthirsty Klingon. You dont believe me? Look at those faces. Look in their eyes.
Now go look at some of the videos of the riots in the UK and of some of the flash mobs here in the US and look into there eyes.
For those who are just starting or are old hands at prepping you may find my Preparedness Manual helpfull. You can download it at:
For those of you who havent started already its time to prepare almost past time maybe. You needed to be stocking up on food guns, ammo, basic household supplies like soap, papergoods, cleaning supplies, good sturdy clothes including extra socks, underwear and extra shoes and boots, a extra couple changes of oil and filters for your car, tools, things you buy everyday start buying two and put one up.
As the LDS say When the emergency is upon us the time for preparedness has past.
Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3
Lastly this for the doubters and the scoffers.
There is no greater disaster than to underestimate danger.
Underestimation can be fatal.
I learned something very similar to your line of thinking at a TeaParty educational seminar.
The thought process that was explained to us was quite simple - that our representative government no longer represents us. That instead, it represents various industries and their lobby’s, because once a group makes their initial contribution to a candidate/representative, that they never have to make it again with THEIR money. This is because the representative repays his/her “debt” to these contributors with tax breaks, kickbacks, and the like, (using money acquired from our taxes of course).
So, with their one time expenditure/investment, the contributors have primed the pump, and they never have to dip into their own capitol again.
Further, the “representative” becomes much more interested in representing these contributors in order to continue receiving ever increasing amounts of monetary support from said contributors, than from representing us.
*Cue the Ned Beatty clip from, “Network”.
Pretty bleak stuff indeed, FRiend.
May God give us strength, and guide our course.
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