Posted on 04/04/2011 3:04:21 PM PDT by blam
His administration is certainly setting the US up for a major transformation. I had a conversation with a lawyer/investor who has been an adjunct prof at a state U business school. His take was any major crisis involving insolvency would lead to a much bigger role for the federal government in the economy. What would emerge would be a nationalized banking and credit system (probably disguised as one in which the feds were just ‘stake holders’). Major corporations would either come under GM type fed control if they faltered or be subject to federal ‘coordination’ to assure ‘the people's interests would be protected’. If the President was a really clever and media savvy type he could become another FDR which would greatly boost the prestige of the federal government in the eyes of a majority of the voters. Such a situation would create a great deal of economic turmoil globally but a clever president could turn foreign quarrels to his advantage by discovering some reason in them for intervention which would be described as ‘protecting democracy’ or some other attractive but meaningless phrase.
“Remember, Bill isn’t some wacko. He’s the “Bond King” “
He’s also a major backer of Keynesian economics, which helped get us in this pickle.
“Aren’t there some INVESTMENTS I can be making???”
There are plenty. Oil pipeline limited partnerships can be bought and sold like stocks, to name one idea.
I know a real estate expert who is buying Arizona homes and renting them out for a 12% return.
There are lots of ways to make money out there. Most fortunes are made during bad times.
The time to get worried is when things have been booming for a while.
I agree with you 100%. It won’t do it openly, either — but you can be damn sure that the implementation of a not-so-subtle euthanasia policy is surely in our future.
I am thinking of trading 10k US dollar for what ever it will buy in Australian dollar and the same in Canadian dollar. Preservation of capital, I do not trust gold at this point in time
Personally I think that Bill Gross has been given inside information that once QE2 is done there will not be another QE by the fed (at least for some period of time). If that happens then bonds are going to drop (interest increases on US treasuries) so Bill got rid of all his US treasury holdings now so that he can buy them back later at a much lower price. The more he talks up this kind of crap the more bonds drop the more he stands to make once he jumps back in. Also, this is the perfect back stop for the Fed as he now has $1.2 Trillion that can be used to fund the deficit which should be good for about 9 months or so.
Once he has tanked up on US treasuries the Fed will then step back in and start printing money again (QE3) pushing down interest rates and making Bill bunches of money. Rinse and repeat as often as needed to transfer all wealth to a handful of people in the US!
We are a banana republic, just without the bananas.
Buy gold and silver. When the government comes for it tell them you sold it in a garage sale.
I'm with you on gold ... I am with you on silver.
But what's with nickels ... does melt value exceed face? I don't think so, except for "war nickels" (WWII) that are 35% silver.
I was offered 7xface for my pile of buffalo nickels, but that's not based on metallic value.
Right now, the melt value on US nickels is over $0.07.
Not too shabby if you could gather up a few tons of them.
Hey blam, hope you are well. I was early on getting out of Treasuries, but at least now I’m in good company. Now I’ve just sold my integrated oil positions, probably early, but you can’t go broke taking profits.
Adding to my oil/gas pipeline companies. There seems to be plenty of oil around, but moving it from place to place has become an issue.
I’m with Gross, default is inevitable. I think his scenario of a slow dilution of the currency is the tightrope the FED is trying to walk. I wish them luck, they’re going to need it.
Bonds have been in a bull market for about 25 years. It’s time for that to change. As you know, inflation doesn’t scare me nearly as much as deflation. It’s just a work-around, and inflation is much more fun to work around than deflation. You get to buy cool things like art and collectibles and enjoy them while they appreciate.
....and ammo, food, water....
why don’t you trust gold at this point? Think it’s too high? There’s a lot of inflation on the horizon and even more chaos, turmoil, war, and another presidential election adding to the uncertainty. Metals are the only investment that I trust right now.
Someone already has. The SDR, Special Drawing Rights, issued by the IMF.
Which is what virtually every country did back in the 1970s.
I have plenty of guns and ammo. I’m doing a lot of food dehydrating right now. Hot peppers, onions, potatoes, onions, and mushrooms (right now as a matter of fact). I fermented up 15 gallons of applejack this winter too and have it bottled up now. I have water in abundance as well as a Katadyn filter. I’m looking into freeze dried chicken in #10 cans. It has a 25 year shelf life. Fuel may be a problem. If it comes, I’ll adapt. I was always nuts about survivalism and such even before I could drive a car but it is occurring to me more and more lately that maybe it wasn’t all that nuts. something wicked this way comes.
Metals, mines and the Canadian oilpatch. As long as the Chinese keep manufacturing, there will be a huge demand for natural resources.
But that does exactly what Bill was talking about, devalue the dollar. Whether they default on the debt or devalue the dollar, the real loser is the working man, who has debts to pay and mouths to feed.
What I am wondering is this:
What happens to other countries when we do this? Whether it be outright “We ain’t paying” default, or a printing press default, we won’t be borrowing any money from anyone, so we won’t be buying much of anything from anyone.
As bad as it will be in the US - the rest of the world - emerging markets, China, India, Brazil, Russia will be complete disasters, and what about Africa?
When we no longer are the market that everyone sells to, who else is going to buy stuff from the rest of the world?
Famine will kill hundreds of millions. War millions more, and that’s just for starters.
That’s the game our leaders are playing just because they don’t want to tell people they aren’t getting their checks.
I don't know about that.
I have been buying more lately, get all I want, and the price per 1000 rounds has gone down about $50 for all but one type, and I don't need much of that type, thank goodness.
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