Posted on 01/15/2010 6:51:54 AM PST by blam
Financial Markets And Economic Crisis Outlook 2010, When Hope Turns to Fear!
Economics / Financial Markets 2010
Jan 15, 2010 - 01:41 AM
By: Ty_Andros
I wish to send you my very best wishes for a Happy New Year.
WE WILL BEGIN THIS MULTI-PART OUTLOOK WITH A GENERAL OVERVIEW, THEN OVER THE FOLLOWING WEEKS TOUCH ON A VARIETY OF CONVENTIONAL AND UNCONVENTIONAL ANALYSES, SPANNING THE MARKETS IN GENERAL, SUCH AS STOCKS, COMMODITIES, CURRENCIES, INTEREST RATES, BOMB....ER, BOND MARKETS AND TAKE FUNDAMENTAL LOOKS AT THE DIFFERENT REGIONS, BANKING SYSTEMS ETC.
IF YOU HAVE NOT READ THE LAST TWO TEDBITS YOU NEED TO AS THEY COVER THE UNFOLDING HUMAN BEHAVIOR AND SOCIAL TRENDS DRIVING THE DEVELOPED AND EMERGING WORLDS IN OPPOSITE DIRECTIONS AND WILL BE REFERRED TO MANY TIMES OVER THE NEXT SEVERAL WEEKS, THEY ARE CRITICAL COMPONENTS OF UNDERSTANDING THE UNFOLDING CRISIS (find them in our archives: www.traderview.com/tedbits_newsletter.cfm
Hope is not an investment strategy and it certainly is not a good guide to selecting LEADERS.
To the something-for-nothing personality, hope is like the high from dope, fed by main stream media to the functionally literate (those who can read and write) and the practically illiterate (those who are told what to think rather than taught how to think.)
The world is falling into what ultimately will be an inflationary depression. This will cause the death or near death of the world's principle reserve currencies: US Dollar, UK Pounds, Euros, Swiss Francs and Yen, and it is unfolding. Insolvency, both moral and fiscal is unfolding: debt spirals on many levels of the developed world will be resolved ultimately with the printing press, this year, next year and until the rest of the world abandons the current FIAT paper and the ultimate Crack-Up Booms unfold. Opportunities abound for the prepared investor, and in fact they are BIGGER than EVER.
When the broad masses who have bought the hope realize it is a lie, and their hope turns to fear, this QE-induced high will turn into a blind panic as the G7's safety nets FAIL; many markets will crash and others will soar and the most helpless will turn into angry mobs as they have no skills and their economies no longer produce blue collar jobs that create the middle classes - those jobs have been driven offshore by public serpents, crony capitalists, trade unions and banksters.
There are three quotes from some of the greatest economists in history which summarize the G7 global economy, currency and financial systems and the societies in which they reside. Two by Ludwig Von Mises and one by John Maynard Keynes and they are:
1. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. --Ludwig von Mises
[snip]
Lemmie guess - buy gold from us.
No way, will the world ever abandon fiat paper, except for maybe a fiat electronic system.
So called hard currency was never really hard, once the first loan was initiated. The minute that loan was initiated you had more money on the books than existed in real life, and the potential for a credit crunch.
Adopting a hard currency can not and will not eliminate the possibility of credit crunches. Only banning credit will do that. Can you say “third world economy”? People are going to want returns on their savings, they are not going to do away with credit.
They are not going to put up with the bouts of deflation that are associated with hard currency.
way more comprehensive....I just perused the site and it is chock full of examples, quotes, etc...
They talk about commodities, currencies, the effect of Bretton Woods on the $ (80% loss value)
Good site and lots of info...
“...bouts of deflation....”
How about stealth inflation?
80% loss of value of the dollar in my adult lifetime. Since 1971.
Return on savings? How about “RETURN OF YOUR SAVINGS?”
HOW ABOUT THIS FOR HIS LATEST SCHEME?
Administration Considers Forcing Investors Into Treasury Debt
http://www.wnd.com/index.php?fa=PAGE.view&pageId=121891
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