Found this interesting article from the Wall Street Journal online. Interesting that now a warning is coming from one of the foremost financial reporting agencies...

The signs are popping up more and more...

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By Paul B. Farrell, MarketWatch
ARROYO GRANDE, Calif. (MarketWatch) -- Wake up investors. Are you prepared for the economic anarchy coming after a global-debt time bomb explodes? Are you thinking outside the box? Investing differently? Act now -- tomorrow will be too late.

Start by looking past the endless cable skirmishes between Rush, Glenn, Bill and Shawn versus Harry, Nancy, Ben and Barack. Look way past the insurgency bonding Sarah and her diehard Tea Party revolutionaries with Ron Paul's Neo-Reaganite ideologues, Fat-Cat Bankers and the Party of No, all planning a massive frontal assault on the 2010 elections, hell-bent on destroying the presidency. All that's the sideshow.

The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout. And as Bloomberg-BusinessWeek predicts: "The results won't be pretty for investors or elected officials."


http://www.marketwatch.c...-2010-02-09?pagenumber=1

US government owns the printing presses. So they won't run out of money to pay the debt. They will simply inflate their way out of debt over the next say 10-15 years. At that point (because of lots of money printing), everything will cost 10 times or more what it costs now. But pay (for those who have jobs) will be say 8 times as much so it won't seem all that different. And the debt will only be 1/10 what it is today (on a percentage basis). That's how I think this ends. How much social unrest this causes I'm not sure, but I doubt it amounts to anything like the "end of civilization" the author of that article seems to be pointing to.

BTW, the US is not unique in its debt. They rank towards the middle of all major world economies in terms of debt to GDP ratio. So don't think this situation is unique to the US.

elphologist

the federal reserve is a private corporation; they print the money (debt).

Have you been watching Zeitgeist per chance?

busted

I like the whole Zeitgeist movement thing, but I'd seriously take all that documentary with a large dab of salt. It seems a little too out there to be that sure of itself.

the federal reserve is private, not part of our government....its an international bank, not a bank of america.....need no Zeitgeist to tell me that. We pay interest for the money that is printed, or our government does...and its against the constitution....i read it myself. Congress is the only one whom is supose to print money, and gold and silver coins are supose to be the currency....not legal tender which is a fancy word for bill of credit...it really couldn't be anymore clear...look it up if you don't believe.



No doubt zeitgeist is bullshit....so are most conspiracy theories....but some of the stuff the say is close to the truth, and some is fact...only small parts..most of it is just lies.

I'm about as far from an economist as it gets, but after I watched the second zeitgeist I stumbled on this:

http://conspiracyscience...dendum/part-one/page/2/

it's actually the next page over that confuses me, but that page leads onto it.

I still don't understand that fully, but all I know is it's not so simple.

while i'm not financially saavy, i understand entropy and aftermath...

don't know if you guys paid attention, but when the market did crash in '08, US reserves began tactical training for 'homeland security' as a precaution for a mass panic. if something worse happens, watch the country become something more of a police state.

wow, i'll have to read more of that link latter...pretty good, yet still against the constitution. But i stumbled on to something weird there, they say that the federal reserve does not print the money, so how do they end up with the money to trade to our government for bonds.....the treasury just gives the federal reserve the bills they printed for free so they can then trade it to our government for bonds of dept? Sounds like a big skrew over nicely thought out, you know the federal reserve act was wrote by bankers in a private meeting in georgia. If the federal reserve dosen't print money, why do we need them, and why do they get handed bonds for doing absolutely nothing?

As far as I know the fed does print paper money, but most transactions today are electronic, no actualy cash needs to change hands. The US Govt only mints coins as part of the currency system. And as far as what the Fed does, it is a giant ponzi scheme, they make money off of making money. They create debt, through interest.

The fed is a private company, originially set up by large banking conglomerates in order to control the money supply, and thus just about everything else. Do some digging and research...we have all be economic slaves our whole lives, born into prison we couldn't even begin to see until recently.

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The point of the article is that it is no longer only "conspiracy theory" websites and people who are warning of an impending collapse/correction. You can now find the info clear as day in the Wall Street Journal, arguably the most prestigious financial reporting in the world.

It is becoming more obvious, so that those who are not already awake and aware of what is going on have a chance to snap out of it before its too late.

If you interested in the bullshit of money, I will post a 1 hour video of how money & our financial system has come to be - it's so backwards and ridiculous it's almost impossible to see that we don't blow the banks up.

Money is created as debt, if there was no debt in our country, if everyone was free of any type of debt, we wouldn't have any money.

There have been these kinds of problems before in other countries. It doesn't always lead to a civil war or anarchy.

The situation of the USA is not that much different than that of most other industrialized nations. The USA scores a little below average i would say, but there are always things the figure's don't show. The debt of japan is much bigger for instance, but 90% of the debt is purely domestic,(the government owes japanese people and banks money so to speak) so the type of debt is less serious.

After the second world war, britain has been in a financial situation that is comparable with the current U.S. situation. And as far as i know it didn't lead to a state of anarchy.

Argentina has been in the same situation pretty recently and it did lead to some anarchy for a while, but everything is more or less back on track now and the degree of anarchy was limited to some luting here and there. The death toll was very, very low and most people are doing fine now.

The only problem in the USA is that it has become a country impossible to govern because of the 60% majority you need to get anything passed in the senate, meaning that basically anything that is even a bit debatable won't pass.

Looking at it that way, it actually a GOOD thing if the fed is not controlled by the government. Any administration would want to get as popular as possible by printing as much money as possible and making good policy would be virtually impossible.

Do all these places with debt have central banking? China is not in dept... i don't think?


I think its ridiculas to say if we don't have dept we don't have money, its the oppisite, if our whole country is in debt we don't have money....example, if whoever calls for us to pay up our dept in gold and silver...the world wide curenncy and other things of value, then the paper we have is nothing more than paper backed by nothing(As now its supose to be backed by gold and silver). Paper has no value....thats like the whole point of the little spot in the constitution in article 1, so bankers can't rob you and leave you with nothing to hold on to but a worthless peice of paper...legal tender. The founding fathers where aware of this, thats why they added it to the constitution, that the ONLY currency shall be gold and silver.

Argentina had a central bank and the bank of england is older than 65 years.
The debts of china are an interesting point. I have never read anything about it, but i think they must be in great debt now or soon, given the ridiculous amounts of money they spent on keeping their economy afloat.

I think that basically, it is good that we have central banks and also that paper has value.

The whole thing went wrong because of the ideology of greed: when the rich get richer and the poor get poorer, we call it the work of the invisible hand of the free market, when billionairs lose money, than suddenly their bank is too big to fail, their automobile industry is too important, and then the poor start paying taxes to fund the rich. And when we all start paying the richman's bill's, we don't even set preconditions so they can just keep making debts at our expense.

Did you know that merryl lynch and goldman sachs bankers contacted the government to ask if they could be the first people to get free swine-flu vacinations?

Those people realy do believe that they are god's. They realy don't have any moral sense at all and worse.... They're proud of it.

Nevertheless, i think that the whole thing will blow over at some point. The only thing is that the west will no longer be the dominant civilization, wich on itself is no disaster. I hope we will see a world then with a more even distribution of power.

LOL...China is not in debt, they are sitting on trillions of dollars in reserve, actual money in the bank. Who do you think we owe our debt to? China, Japan, and other countries are the ones who have been buying the majority of our treasury bonds...not you and I.

China manipulates their currency artificially, they wont let it float on the open market. The only way China will find themselves in debt is if the US defaults on all the money we owe them. Our two economies are so inextricabally linked...

I know these things.

But china is also spending an awfull lot of money.
Before the financial crisis, china was already producing to much stuff with it's partially state-owned factories, for it's internal market AND the west combined, to consume. Since the export dropped dramatically, the government started to compensate the loss of revenues with more spending on public works.

They for instance have build a city that could hold a million people, with everything on it: roads going to it, sewage, waterpipes, houses, schools, etc.
But no-one lives there. They build a ghost town that could house a million people.

They build roads that lead nowhere, with bridges and tunnels, etc.

So in what state the chinese economy realy is....i think they don't even know themselves.

I'm sorry, but i disagree based on facts. Paper has the value of paper, the only reason our paper money seems to have value is because we say it is backed by what really holds the value, gold and silver. Other things have value also....but gold and silver is the world wide curenncy in which all paper(Bills of credit) is backed by, without the gold and such to back up the paper...the paper is nothing but paper, it holds the value of paper, which is not much value. Digital money is the same....digital credits backed by a physical item of value. Without the physical item of value the credits mean nothing at all.

The paper and digital money is simply an (I Owe You) for the real item of value.

Yeah, that's the problem with people latching onto whatever convenience conspiracy theory presents itself. It's ten times harder to get at the truth when the masses are screaming about Codex Alimentarius or Obama being a Stealth Muslim from Sub-Kenya (the vast kingdom of mole people under the African continent).

US Dollars haven't represented gold or silver for quite a long time. This is a good thing, because otherwise a country like Russia could get pissed and dump their gold reserves into the market, catastrophically de-valuing our currency over night. Also, there isn't enough gold to back all of our money, since part of the value of our currency lies in real estate, services, and other less immediately tangible areas.

Currency now is basically like stock. A dollar is good for one share of the USA, and unfortunately it is coming to pass that the shareholders (rich people) are making policy instead of the citizenry.