16 votes

How close are we to economic collapse?

We have everything today that any keynesian could ask for to achieve their dreams of steady inflation and continuous full employment. All hard currency has been phased out and replaced by an elastic world reserve currency whose value is universally accepted, and all nations are required to use it in transactions by threat of force. In any other scenario, interest rates could only be held down for so long, a money supply could only be inflated so much and reserve lending ratios held so low before a crash would cleanse the system of the insolvent banks and businesses. The more frugal banks and businesses would survive to bring about a healthy economic revival. Currently, banks have what modern economic theory would conceive to be a system by which money supplies could be increased indefinitely without being confined by competition from hard currencies and sound business practice.

The problem is that instead of a steady rise in prices accompanied by robust economic growth and high levels of employment, we have a stagnant economy, with an unemployment rate unable to drop below seven percent and a worker participation rate lower than any seen in thirty years. And this is all that keynsianism will ever give us. Even under a system in which there is no competition amongst banks to force interest rates up and encourage a contraction of the money supply, the money manipulators can still not produce economic prosperity or anything better than the most modest growth. They over look the damage that has been done to the capital structure and have no conceptual understanding of the malinvestment created out of their low interest rate policies. The paradigm guiding our wise masters has brought us to a point that we can now observe as the farthest travel of a price structure from equilibrium that has been achieved in all of economic history; meaning that the subsequent crash will most likely be as violent as an economic shift can possibly be.

Any person unable to foresee the coming catastrophe must be blind or blissfully ignorant at this point. The focus of investment markets is on nothing but the activity of the Federal Reserve and its Quantitative Easing program. It is remarkable that we even get to watch something so absurd as the downward movement of the market on days in which positive economic statistics are unveiled and upward movement when the statistical economic outlook is negative. Investors are afraid that if the economic forecast is good then the Fed will start to scale back its bond buying program, sending rates up and the bond market down in a tail spin. Interest rates have already begun to rise even though the Fed continues to purchase $85 billion a month. With today's announcement that the Fed is committed to slowing their bond buying program some time this month, which should be taken with a grain of salt because it is highly unlikely, the question must be asked; How prepared are you for an economic collapse?



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

this cliff has been here since 2000 when we peaked in growth

This cliff has been here since 2000 when we peaked in growth and we have been falling since then. Sometime in the next 2 years the FED will taper(not by choice) and we fall off the cliff in the coming months.

In any case... the FED will own 100% of all outstanding treasuries by 2018, at which point all liquidity ends.

Tools of war are not always obvious. The worst weapon is an idea planted in the mind of man. Prejudices can kill, suspicion can destroy, and a thoughtless, frightened search for a scapegoat has an everlasting fallout all of its own.

It might not be a sudden overnight collapse

It may be more like the 1970s, inflation coupled with a stagnant economy, stagflation causing a lost decade, or two. The mid 1970s brought on wage and price controls and rampant inflation, that failed but that doesn't mean they wont try again. Fed chair Volker cranked interest rates to unprecedented levels trying to wrench inflation out of the economy. Gerald Ford did a fairly job of vetoing many spending bills but the economy really didn't come back until the Reagan administration.

I don't believe an over the

I don't believe an over the cliff type collapse is in store. A slower confiscation of wealth leaves the public with much less ability to fight back.

If the dollar was worth zero in the morning people would be in great shape to rise. On the other hand slowly drain the wealth and we will have a much harder time rising. That said when people are weak enough a collapse will take down the last few holding any wealth.

Any time now!

Any significant interruption of the distribution (food) system ie: Truckers strike, fuel/power interruptions, war etc. and chaos (death and destruction) will take its full course.

Very fragile threads we are hanging on by.

All of this could be avoided with a widespread commitment to honestly addressing the cause.

Within five years we could have peace, harmony and prosperity for all.

The creation, production and fair exchange of values is the business of evolving consciousness, love and life.--Craig Johnson

Forward and up

We are just coming to a crash bottom now. That's 5 years total from 2008 peak, with a bounce in the middle (2010-2011).

Expect 4 years of up, then what I expect will be a serious crash (spike) as we saw occur 2008-9.

Any time within the next 7 months before we start to climb again and can say the bottom is behind us.

(If you are a trader, you will be seeing something similar)

I would have to disagree

I don't think that we can make market predictions right now based on some temporal cycle. I believe that the flow of capital is so severely hindered by economic policy that there is no way to get spending on a correct enough coarse to pull us away from stagnation.

Just as was seen in the early eighties, Paul Volcker was able to bring rates up high enough to stop the inflation and get the system cleansed to a point. The difference being that today we could not bring interest rates up high enough to do what needs to be done without bringing about a federal default. That is why we are looking at a deep cleanse before we can even start to talk about real, healthy economic growth.

I fear that it will be a slow

I fear that it will be a slow boil, rather than a sudden collapse. That seems to be what is happening today.

I agree, to a point

It won't happen all at once, but it will happen Overnight.

It took me a while to understand that, but once it's understood it's all a confidence game, the house of cards comes down. Thankfully we have many that respect the truth and have prepared accordingly.

Keep working for truth as you know it.

The collapse will come when

The false national debts get so high that they are refered to as a national joke.

When enough people recognize and are unwilling to trade in counterfiet Rothschild false debt notes the collapse will be complete.

or when

The Rothschild family decide to inflate or deflate the worlds false debt curencies they can cause the intentional collapse.

This will occur when they think they can start a major war imho.

sovereign

ConstitutionHugger's picture

Considering all the FRNs I've been spending on prepper stuff

some kind of decent sized catastrophe better come soon, or my hubby will be mad.

Meh - Impossible to tell

It could be tomorrow (well, not literally tomorrow, but maybe a few weeks to a few months), or it could be another 50 years. Who knows what those banksters have up their sleeves?

Picking the exact top is a very low probability event, and a fools game.

I didn't try to pick the top in gold. That was nearly 2 years ago. But after observing this thing for the past two years, I'm pretty sure the top is in.

The Diamond Dog is a real cool cat. | Reporting on the world from an altitude of 420.

I would say that we know exactly what the banks have up their..

... sleeves. We've seen it a million times. All they can do is suppress interest rates in an attempt to spur consumer spending. They can't mend the capital structure or institute proper pricing because they are not God. Unfortunately there is just not much that they can do to prevent what sound economics tells us is bound to come. It may not be for a couple of years, but I would guarantee that it is not that far away.

Bump

How close to collapse is a good question.

Gold, Silver, Petroleum and their paper ambassadors

http://www.dailypaul.com/299538/the-beauty-of-petrodollars.

No American President did stupid (or selfish) like the Railroad Lawyer, Abraham Lincoln. He started the third central bank of the Unites States. A pox on central bankers and their supporters.

Free includes debt-free!