Why the US economy is fucked

Fear mongering maybe but a lot of good points and hopefully not an indication of things to come

 

 

 

It's definitely not a question of IF, but WHEN.

 

How long before the fall of Rome really gets revved up and moving.

 

Until China's bubble pops they're forced to be our cruch no matter how bad things get. They can't "let" us fail, not by a long shot, and currently they have the means to provide limited protection from reality.

 

But once they run into their own trouble...look out below, no one's left to bail us out!

hopefully not an indication of things to come

I fear it is. The monetary system is bound to fail at some point since there is way more debt than money, and I can't really see how this gap is ever gonna close. Individually the system can work, but as a whole there are major flaws.

 

The questions are as he says in the video; how long can we keep going, and how will the collapse happen.

What if we raised the taxes on any Chinese made goods and eliminated taxes on any American made goods. Wouldn't that give businesses an incentive to do business here? That would also drive people to buy American goods and help boost the economy........wouldn't it?

double post

What if we raised the taxes on any Chinese made goods and eliminated taxes on any American made goods. Wouldn't that give businesses an incentive to do business here? That would also drive people to buy American goods and help boost the economy........wouldn't it?

 

 

It'd make more sense to outlaw unions and lessen the power of the EPA.

I dont like how they make corporations look like they dont pay enough.

 

-They are paying *some* taxes

 

-They are paying wages, and what money is "kept" by the CEO or shareholder or whatever is being spent somewhere/somehow

 

-Corporations have to match *everyones* taxes. In other words, if my employees pay $10k in taxes each, I (the corp) have to also match this for each person AND THEN pay 15% on what is left.

How the financial systems work. Wait for it @ the end.

 

How the financial systems work. Wait for it @ the end.

 

lol

How the financial systems work. Wait for it @ the end.

 

 

 

I will admit, I am no economist or politician, but the simple logic of "lets borrow more than we can pay off any time soon" just doesn't make sense in my head.

What if we raised the taxes on any Chinese made goods and eliminated taxes on any American made goods. Wouldn't that give businesses an incentive to do business here? That would also drive people to buy American goods and help boost the economy........wouldn't it?

 

China and the USA are mutually parasitic, at least for the time being. In a way, it's the only thing keeping the train on the tracks right now. If you tax imports, what happens is that there is a very painful transition- one that the USA is simply ill equipped to manage. We've completely given up our industrial capacity in exchange for us to be able to print money, lend money and charge interest.

 

The gig is up, though. This really started when Lehman fell, and when the government started to pick and choose who was small enough to fail. The window is closing, I'm afraid.

 

I am still very bullish on United States. We have the brain power, the fire power, the natural resources and the DNA of our separatist forefathers. We are the first in line to help our neighbors, but we're sort of sick of the flack from the noisy jealous haters and the Banksters.

 

The transition looks like this. 1) The markets fail to provide a transparent place to conduct business. 2) Gov is going to come in and bail out the big 6 banks. 3) The people are on the hook for the inevitable default of the big bailout. 4) Politics breaks down. 5) States start demanding a constitutional convention, feds deny, states like Montana, Vermont, Texas, Wyoming, Alaska, Hawaii start seceding. 6) Nobody wants a war, so the agreement is a return to the original constitution with a gold standard for currency. 7) Breakdown of civil discourse starts to reverse. 8) Bond holders and China: Pound Sand. 9) Return to normal footing. #5 is where the war might be. We've been down this road before, albeit for very different reasons and arguably more honorable reasons than just "we're sick of paying someone else's bills" I think we're witnessing #1, #2, #4 sort of building concurrently right now.

 

Just MHO.

 

This is a 5-10 year transition, I think we've already begun and we're looking down the barrel of #2 here, real soon. That's when the problems start really showing up. When we have to bailout BofA.... Yowzers.

Just look out on the street to see what time it really is. The jig is up folks.

Its happened before and its going to happen again, and it will continue to happen. The question is who foots the bill. Everyone is worried about the US, and yeah there will be problems. But, the worse side of those problems will be felt by those countries already on the edge. If you think the US has it bad, just keep a close eye on China when "it" happens. Unlike the US, China is comprised of geographic regions of distinct ethnic groups that aren't very happy to be under a centralized Chinese rule. The US remains at the top of the pile, if things get really really horrific here, elsewhere will be a holocaust.

 

http://www.amazon.com/Causes-Economic-Cris.../dp/1933550031/

 

I make way more money than I should because other people borrow shitloads of money that will take them a good chunk of their life to pay off. When that ends, I'll make way more money than I should because of some other reason, and that money will go a lot further.

Signing on for interesting commentary. If the entire world economy went to shit. Where would you want your money...or what little is left?

Signing on for interesting commentary. If the entire world economy went to shit. Where would you want your money...or what little is left?

 

In gold.

 

If the trend we see is true, where you're money is wont matter if hyperinflation kicks in.

If the entire world economy went to shit. Where would you want your money...or what little is left?

Cases of MREs, H20, 9mm, 5.56, .308, and .50BMG.

Cases of MREs, H20, 9mm, 5.56, .308, and .50BMG.

 

THIS!

 

Gold is just as imaginary as money. If the shit really hits the fan you think people are going to care about a perty rock?

THIS!

 

Gold is just as imaginary as money. If the shit really hits the fan you think people are going to care about a perty rock?

Gold has always carried value through the entire history of man. Even if the world was to go to shit in the worst possible way people still need a way to pay,buy and trade for things.

THIS!

 

Gold is just as imaginary as money. If the shit really hits the fan you think people are going to care about a perty rock?

 

I think an argument can be made for ammo, silver and gold. Ammo, small dispensaries can still be fabricated, though certainly at a much lower volume.

 

Gold and Silver, when the SHTF are going to explode relative to fiat currency but not their buying power. Perhaps we'll be buying 50 gallons of diesel fuel for two ounces of silver, you aren't going to pay for it in dollars. You'll be paying for it in precious metals, jewels, meat, labor, seeds etc. I don't see the end of gold as a bartering standard any time soon, even when the zombies or flash mobs come. It will be worth far less, relative to what it will currently buy. But still not a bad thing to have around.

 

I am convinced we're headed towards hyperinflation very soon. The Hyperinflation just crushes the impoverished and the fixed income people. Those of us who are not on fixed incomes will merely provide for our families that are on fixed. Right?

 

But I'm not convinced we're headed towards a SHTF scenario, either. What does it say that a bunch of guys who drive around $200K Lamborghinis are even talking about it? We need to get focused on rebuilding this once-great country, and pull the rest of the world out of their doldrums. We merely have lost sight of the human spirit that we all deep-down inside love and appreciate. Just my two cents. IF you're convinced that this place is headed towards Mad Max Roadwarrior whatever, go spend some down time over at godlikeproductions and you'll be cured of your temporary loss of confidence in your ability to be a functioning member of society. Those people are guano crazy, running around with their kool aid and their ammo and their silver and their guns. I just want to see people be successful and make this place better.

I am convinced we're headed towards hyperinflation very soon. The Hyperinflation just crushes the impoverished and the fixed income people. Those of us who are not on fixed incomes will merely provide for our families that are on fixed. Right?

 

That depends entirely on how bad the hyperinflation is.

 

 

But I'm not convinced we're headed towards a SHTF scenario, either. What does it say that a bunch of guys who drive around $200K Lamborghinis are even talking about it? We need to get focused on rebuilding this once-great country, and pull the rest of the world out of their doldrums. We merely have lost sight of the human spirit that we all deep-down inside love and appreciate. Just my two cents.

 

I believe a Mad Max scenario would only happen if our society was structurally destroyed (e.g. nuclear war, asteroid strike, oil runs out..etc).

 

However, a SHTF happening economically is certainly possible.

 

As for rebuilding this country, where do you start if the financial system has collapsed?, where one day you could buy a Gallardo, the next it would barely buy you a loaf of bread?

 

My 2Cents

So buying ETF's like SLV and GLD to hedge against inflation won't work either cause if their is a total collapse then unless your holding on to the actual silver or gold, your fucked !!!!!

So buying ETF's like SLV and GLD to hedge against inflation won't work either cause if their is a total collapse then unless your holding on to the actual silver or gold, your fucked !!!!!

 

Wall Street needs bubbles to survive, thus they will be inflating and deflating bubbles for years to come. Gold and Silver are definitely bubbles, like we talked about in the other thread, when the guy behind the 7-11 counter is telling you to "buy gold", or your shoe-shine guy is telling you to "buy gold", or you're seeing TV commercials for Cash-For-Gold on every major news network 24/7, then you know it's a bubble.

 

But regardless of when that particular bubble pops (probably well above $2,000/oz.), the reality for the "worst case scenario" in the US is that we could become a country very similar to Mexico today: Hyperinflation, 1/10th of 1% of the wealthy families controlling 25%+ of the country's entire economy (money), small percentage of true middle-class income families, high percentage of people living below the poverty line, high unemployment rate, high crime.

 

It's not Mad Max, but it will be tough for many.

 

The question though again, is when. The government is very good at putting lipstick on pigs and telling everyone that it's allllllllll OK when it's clearly not. Could be several decades away from today before we see the scenario above...who knows.

So buying ETF's like SLV and GLD to hedge against inflation won't work either cause if their is a total collapse then unless your holding on to the actual silver or gold, your fucked !!!!!

 

Sell gold-buy guns and ammo. They will be worth more if this really happens.

 

If it does, Romandad and my father will be Billionaires.

But regardless of when that particular bubble pops (probably well above $2,000/oz.), the reality for the "worst case scenario" in the US is that we could become a country very similar to Mexico today: Hyperinflation, 1/10th of 1% of the wealthy families controlling 25%+ of the country's entire economy (money), small percentage of true middle-class income families, high percentage of people living below the poverty line, high unemployment rate, high crime.

 

It's not Mad Max, but it will be tough for many.

 

Let me ask you this. Let's say that $100,000 today will buy you a gallardo, but tomorrow it will buy you a loaf of bread. 90% of the wealth in the middle class in this country is in real estate that has a mortgage on it. If I can walk down to the bank with 4 loaves of bread to pay off my mortgage, won't there be a stabilizing effect that hedges against the massive inflation? For truly massive inflation we need to be printing dollars day and night, weimar republic style. Granted we are printing more money and it's going to the mega banks where they toss it into a black hole. But it's not like they are printing million dollar bills and buying table dances with it. Hell that might be a better idea than giving it to BofA. At least there'd be some movement.