Saturday, October 10, 2009

The Great Depression, Part Deux Deux

http://finance.yahoo.com/loans/article/107936/US-mortgage-backer-may-need-bailout?mod=loans-home

Now, FHA is about to auger in. Let's just send them an extra half tril we don't have.

In the upcoming depression, the only thing that will have value is gold and silver and other actual tangible commodities. Real things, like guns.

I have been telling friends for six months now, to put at least 20% of their savings in precious metals. I am not a big advocate of actually taking possession or storing precious metals but that is not unreasonable.

Why?

This is a one way street. It is truly getting close to game over as the bankers steal your tangible possessions with worthless paper.

Imagine a country 60 trillion in debt. You simply cannot earn or spend your way out of that type of fiscal mess with interest. And we aren't even the worst. Japan's debt load is 200% of it's GDP. So when does the dollar or the yen collapse? Apparently not yet. Hell if we use Japan as a measuring stick, we still have all kinds of credit left on our card.

http://seekingalpha.com/article/125072-debt-loads-of-g20-nations-japan-u-s-deep-in-the-hole


It would be like your daughter applying for a platinum visa, getting it, and ringing up a 100,000 dollar debt with 12% interest. She has no job capable of meeting the monthly payments so she simply sends the bill to you.

That metaphor is precisely what the government is doing to you. But unlike your daughter-they will threaten you with prison for not paying their bill.

Sound crazy? It shouldn't. That is precisely what Frankenstein government is all about. As soon as you are born, like it or not, you currently owe the government 39,000 dollars. That's on our current 11 trillion dollar debt. Factor in the 50 trillion dollar obligation of social security and medicare and now you see why something has got to give. We simply can't pay the freight.

Freedom? Not by a long shot. Not until you kill Frankenstein.

Social security and medicare are about to fold up like cheap suits. And runaway inflation? It's a given. In fact, if I were a merchant selling tangible goods, I'd simply refuse to take US currency. That's a fact and in all reality, precisely what is going to happen.

The dollar slide? Not over yet, not by a long shot. Gold now trading at 1050 and about to break higher.

Us old guys? We were the ones watching this shit happen. Young folks? We not only spent your inheritance but we left you in a very deep hole.

The best part about all of this is that we could change it by abolishing the Federal Reserve entirely and getting back on a gold standard. Establish our own currency, use interest payments to fund government debt instead of taxes. In essence, we would be wiping the middle man, bankers, right out of the food chain and eliminating those thieves. Or not. You can always just ignore this, perhaps watch tv, and hope it all goes away.

http://www.usdebtclock.org/

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