Daniel’s
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(group member since Aug 16, 2007)
Daniel’s
comments
from the Is this a world wide monetary collapse? group.
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Will CREDIT CARD DEBT be the NEXT straw that breaks the Camel's back?This report seems to think so:
(click link below)
http://www.marketwatch.com/news/story...
See: (Click link below)http://www.nysun.com/opinion/receding...
Warren Buffett and George Soros BOTH have said this is a period of deleveraging.
This means That the money lent by lending institutions -- velocity money (m1 and m2) -- will now decrease by 2 to 4 times the rate that the real money supply shrinks.
This means layoffs will increase and people -- mostly here in the U.S. -- will spend far less than they are spending now.
The U.S. has only one sixth of the world's population but uses almost half the world's oil.
So you know that the oil price will peak and then drop.
But as this government uses more trillions -- it's used almost one trillion already -- to shore up the failing banking system, the Asians will quit accepting our paper for their investments.
They might not even want it anymore in exchange for their goods either.
Let's paint the picture so you can clearly see it:
At first: the money supply decreases as velocity money vanishes.
Then it increases as the government spends to keep the banks solvent.
The money supply decreasing now, is the "dead cat bounce" of the dollar that George Soros is talking about.
So you still have time to get out of dollars and dollar denominated investments -- stocks, bonds, etc..
How much time?
I don't know.
Fitz
Are we in for something WORSE than 1929?
http://business.timesonline.co.uk/tol...
and read
http://www.bbc.co.uk/blogs/thereporte...
The equivalent to Black Thursday in 1929 would be the Dow falling about 5,000 points in one day which would mean the loss of about 5 trillion dollars and which would be impossible for any and all governments to cope with.
What if Soros is right?
Fitz
Mar 14, 2008 10:37AM
