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The coming financial pandemic
National Post (Canada) ^ | March 4, 2008 | Nouriel Roubini

Posted on 03/04/2008 7:54:09 AM PST by Gritty

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To: TLI

Body need Foods water and Shelter. Oh and guns and plenty of ammo to protect them.

Might be hard to trade that gold for a sack of potatoes.

Were not there yet but it does not hurt to be prepared.


21 posted on 03/04/2008 8:42:44 AM PST by Bailee
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To: Gritty
>>
Can the U.S. financial crisis be contained within America’s borders? Nouriel Roubini says no—and explains how the contagion will spread...
<<

It is not so much “contained” or “contagion”, for the root issue is that every single central bank in the world issues money that is “borrowed into circulation”, that is fiat money that in the final analysis is simple government counterfeiting of private wealth.

This is exacerbated by fractional reserve banking that also creates money out of thin air in a different way, but one that has a many-fold leverage factor based on bank capital. When capital expands, lending can expand by a factor of 20x or even 30x. When capital contracts, which it did by a large factor when CDOs of sub-prime mortgages were written off in large measure, then lending must contract by a factor of 20x or even 30x.

Long ago, economist Ludwig von Mises understood that this is the cause of our "normal" boom-bust business cycle.

22 posted on 03/04/2008 8:44:29 AM PST by theBuckwheat
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To: Gritty
>>
President Bush’s fiscal stimulus package is too small to make a major difference today...
<<

All the proposed “stimulus” packages are all the same: borrow money and give it away. It would be far more productive and take a lot less time to accomplish if Bush would just insist that everyone go out and get a $1000 cash advance on their Visa Card.

When someone doesn’t understand the very nature of wealth and money, they are foolish to believe that such self-stimulus can be satisfying. Government is the largest single drag on the economy. It is amazing that we can prosper with more than a third of our income being dissipated in such foolish ways.

The best way for government to “stimulate” the economy is to cut spending and cut taxes by a $150 Billion. If $150 Billion is good $900 Billion would be better. Indeed, why stop there?

23 posted on 03/04/2008 8:52:17 AM PST by theBuckwheat
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To: Sherman Logan

I made a hunk of change from mid-70s to 80 investing in gold. For a time, this market makes me happy b’cause I’m doing the same thing now. I’ll be watching carefully for the exit, however, just as in ‘80.


24 posted on 03/04/2008 8:55:37 AM PST by cinives (On some planets what I do is considered normal.)
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To: Gritty

Slippery Slope there.


25 posted on 03/04/2008 8:56:53 AM PST by RightWhale (Clam down! avoid ataque de nervosa)
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To: Bailee
[Body need Foods water and Shelter. Oh and guns and plenty of ammo to protect them.]
 
The Church forms an extended family which lessens the need to defend the basics from covetous neighbors - and it provides structural organization for communities of neighbors to mount an organized defense against covetous outsiders.
 
This Strength is one of the reasons Marx sought to "Eliminate the Opiate".

26 posted on 03/04/2008 8:58:33 AM PST by Etoo (I regret that I have but one screen name to sacrifice for my country.)
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To: Gritty

Looks like my Y2K survival bunker will come in handy after all. The end is nigh!


27 posted on 03/04/2008 9:06:29 AM PST by stinkerpot65 (Global warming is a Marxist lie.)
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To: Petronski

This guy is a bear of epic proportions. He wrote the article posted on FR a couple weeks ago basically predicting a total meltdown in the financial system.

Unfortunately it seems the bears are consistently being proved correct of late.

As a wise person told me, though, its never as good as it seems during good times, and its never as bad as it seems during bad times. We’ll find out in the next 12 months how true that is.


28 posted on 03/04/2008 9:21:09 AM PST by VegasCowboy ("...he wore his gun outside his pants, for all the honest world to feel.")
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To: VegasCowboy
I don't know what to do with my 401k or my roths but I do know to start putting stuff away while I can....I never go into town unless I stop at a store and buy something that is on sale that can be stored for some time...the basics mostly....tomato sauce, salt, pepper, canned goods, paper goods, laudry soap.....

buy it when it is on sale only...that's the only way to get around inflation....

I also recommend having a few gallons of gasoline around...just in case you need some but it would be out of you way to go into town at that time....this applies moslty to people that live outside of town.

29 posted on 03/04/2008 9:46:49 AM PST by cherry
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To: alexander_busek
>>Can the U.S. financial crisis be contained within America’s borders?<< Well, for starters, we could build a BIG WALL.

That's the ticket! We aren't building a wall to keep out illegals, were building it to contain the recession!
30 posted on 03/04/2008 10:08:30 AM PST by jimmango
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To: TLI
I strongly suggest that folks invenst in hardware commodities.

I am reminded of the parable of the ant and the grasshopper. The one enjoys the summer, yet carefully provides for the winter (the ant). The grasshopper frolics and does not prepare. Not the best analogy but..... It does not hurt to be ready for any crunch. My experience of the average person is that only when things happen that are bad, do they wish different.

My own suggestion that will not be taken- of course (chuckles) is that people try to minimize any unnecessary debt. Sure a mortgage is a tough one and indeed an automobile, both mostly necessary.

Watch that credit card debt says I.

31 posted on 03/04/2008 10:26:17 AM PST by Peter Libra
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To: Peter Libra
Whoops! quoting you accurately

I strongly suggest that folks invest in hardware commodities.

32 posted on 03/04/2008 10:29:14 AM PST by Peter Libra
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To: Bailee
Might be hard to trade that gold for a sack of potatoes.

Yep. Much easer to swap a 20 round box of 308 or 223 for a bushel of tators and kid goat.

33 posted on 03/04/2008 11:06:16 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: Gritty
So we all suffer because the banks loaned money for over inflated homes to people who can't afford their mortgages?

Let's not forget Bank of America and Citibank loaning money to illegals who don't even have a social security number.

So we all pay for the Nation's big banks stupidity and greed. What's worse, is that those of us who have invested in these failing banks and hold stocks or 401 k's, end up being the victims who will end up losing our hard earned money.

sw

34 posted on 03/04/2008 12:04:46 PM PST by spectre (spectre's wife)
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To: spectre

Sadly, it appears so.


35 posted on 03/04/2008 12:46:25 PM PST by Gritty (Rule by the people is threatened if they're unable to gain a plausible grip on reality-Tony Blankley)
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To: cinives

Me too. This go-round I bought a bunch of it at $280/oz about 4 years ago. I wish I had bought a lot more.

My dad keeps trying to get me to sell some and “take some money off the table”. I told him last night “yeah, you told me that at $700/oz too”.

It has so far to fall before it wipes me out that I can afford to wait for a firm exit sign.

LQ


36 posted on 03/04/2008 12:57:40 PM PST by LizardQueen (The world is not out to get you, except in the sense that the world is out to get everyone.)
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To: LizardQueen

I bought higher, at around $483, so for my purposes when it gets down to 920 or so then I’ll probably exit.


37 posted on 03/04/2008 1:07:52 PM PST by cinives (On some planets what I do is considered normal.)
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To: TLI
> ammo

Ammo isn't hardware -- it's a consumable!

38 posted on 03/04/2008 3:27:20 PM PST by NewJerseyJoe (Rat mantra: "Facts are meaningless! You can use facts to prove anything that's even remotely true!")
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