"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Saturday, February 23, 2013

Wall Street Setting Up Financial Armageddon

"Paper money eventually returns to its intrinsic value -- zero."

A new Financial Armageddon is coming
  • Fully attached to the bottomless Big Government credit card, banks and Wall Street are pouring billions into more speculative investments and low to no down payment government backed home loans.
  • The special interests are too big to fail and they know the government will print whatever amount of money needed to prevent failure of any politically well connected business.

By Gary;

The boom and bust cycle is starting all over again.  Hold on tight and enjoy the ride. 

A crucial change in the way financial derivatives are packaged and sold on Wall Street is enabling traders to bypass new regulations aimed at limiting reckless speculation, enhancing the prospect of another derivatives crisis, warn some market participants.

The Dodd-Frank financial reform law came into effect in 2007 in response to the financial crisis- it required safeguards for investors to cover losses on their derivatives trades. But what if investors found another, risky, way around that? That's what's happening now. Is it time to start the financial armageddon clock?

A Must View Video  
Wall Street is Setting up Financial Armageddon
Yes, we are totally fucked.

Peter Schiff: It's Going To Hit The Fan During Obama's Second Term
Euro Pacific Capital's Peter Schiff on the stagnation in the precious metals market and central bank inflation policy on Fox Business' Varney & Co.

"The gold standard did not collapse. Governments abolished it
in order to pave the way for inflation."
Ludwig von Mises

The U.S. cannot avoid a Financial Armageddon
  • The orgy of money printing and spending cannot end.  The politicians of both parties have built a trap for themselves.  They must print and spend money they do not have in order to buy the voters needed to keep themselves in power.
  • In fact, Leftists have no problem deliberately burning down the current system in order to build a Marxist Worker's Paradise.

The U.S. economic and systemic economic crises is just precursors to a Great Collapse: a hyperinflationary great depression.  Congress has no will power to stop the spending and money printing.  The fact is Congress must print and spend to keep the politicians in power though vote buying.

With no changes in policy, in time there will be a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment.

Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money.

With the creation of massive amounts of new fiat dollars (not backed by gold or silver) will come the eventual destruction of the value of the U.S. dollar and related dollar-denominated paper assets.

Endless money printing in Zimbabwe brought hyper-inflation.
Pay another 100 Billion and you get two strips of bacon.

What lies ahead will be extremely difficult, painful and unhappy times for many in the United States. The functioning and adaptation of the U.S. economy and financial markets to a hyperinflation likely would be particularly disruptive.

Trouble could range from turmoil in the food distribution chain to electronic cash and credit systems unable to handle rapidly changing circumstances. The situation quickly would devolve from a deepening depression, to an intensifying hyperinflationary great depression.

Hyperinflation in Zimbabwe, the former Rhodesia, was a quadrillion times worse than it was in Weimar Germany. Zimbabwe went through a number of years of high inflation, with an accelerating hyperinflation from 2006 to 2009, when the currency was abandoned. Through three devaluations, excess zeros repeatedly were lopped off notes as high as 100 trillion Zimbabwe dollars.

The cumulative devaluation of the Zimbabwe dollar was such that a stack of 100,000,000,000,000,000,000,000,000 (26 zeros) two dollar bills (if they were printed) in the peak hyperinflation would have be needed to equal in value what a single original Zimbabwe two-dollar bill of 1978 had been worth. Such a pile of bills literally would be light years high, stretching from the Earth to the Andromeda Galaxy.

Leftists want to burn down the system
To implode the Capitalist system from within through debt, taxes and inflation is the goal of all Leftists and Marxists.  Once Capitalism is destroyed the Left can build their fantasy Worker's Paradise.

"Some men just want to watch the world burn."

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