Those worried about economic collapse?

[Kid Stanislaus]

As you know from the news, consumer confidence is a big factor in consumer spending and housing which in turn have been important catalysts in the US for economic growth in the past. I am currently watching consumer spending. The longer consumers stay frugal, the longer we will be in this muck and the higher the probability that some catastrophic event will push us back into recession. If Europe erupts into chaos because their populations rebel against austerity measures, that will have a negative impact on our economy and drop consumer confidence even further. It becomes a self fulfilling prophecy. Even just a string of bank failures in Europe because of government defaults could be enough of a push without social upheaval. But that is just me.

I think you're pretty much right on with that assessment.

[Kid Stanislaus]

The bread line is now an EBT card, looks just like everyone else in the grocery store - swiping the card to pay. Likely most good indicators are being hidden from us as well.

Spot on, and the 10M+ drawing unemployment insurance must be considered.

[Kid Stanislaus]

Once people cant afford there internet bill and a Big Mac I will start to worry.

Well hell man, how many MILLIONS of people in that catagory does it take to make you worry?

[OHOD]

Well you are a problem child. Just sayin

But seriously....
It depends on how you say it....

If the economy and national debt continue on the same path it is on now, then we can expect a serious economic problem bordering on collapse. All one has to do is look at the value of precious metals as a safe haven investment.

Consider the bag of chips you eat for lunch. The volume has decreased while the cost has risen .
The true Bell Weather is the bag of chips. I say....if two chips cost $10, then it is safe to say we are in an economic collapse.

Let's look at the good old FRN (Federal Reserve Note). Quantitative Easing is causing more and more FRN's to enter circulation thereby creating a devaluation of the $. At what point will we all agree when the FRN has no value.
There is also the argument that Quantitative Easing is a plan to devalue the dollar and create a new world monetary unit.

[Kid Stanislaus]

I'm seriously thinking about pulling all my money out of my 401k.

DO IT NOW!!

[Kid Stanislaus]

Hmmm. When I posted about the economy I got threatened with ban and my post (2) were deleted. Just sayin

Maybe you were too optimistic?

[Kid Stanislaus]

INFLATION
The price of gold. This will continue to rise and then compared to the real goods (gas, eggs, bread, ammo, bottled water, canned goods, livestock) will drastically fall. Eventually an once of gold will buy 100-200 rnds of ammo, a couple dozen eggs, several chickens, a pig, a pair of new shoes, etc.

Tell me more about the crash in the price of gold. What will cause that?

[Kid Stanislaus]

It's already been slowly encroaching. Denninger predicts a violent deflationary collapse............

If that occurs cash will definitely be king.

[thenodnarb]

Tell me more about the crash in the price of gold. What will cause that?

IMO gold will only go down in the LONG run if the economy gets better. Temporary drops like the one seen in the last few days is usually people selling gold to buy T bills(which seems counter intuitive but still happens).

[problemchild]

http://market-ticker.org/akcs-www?post=192780

Here is whats happening. The short term market is rigged. There is no free market.

My theory on what will take place, and many PM investors think the same as me, is this. In the short term and before a complete crash the banks and JP Morgs will drive physical prices down so they can buy a ton of it. The market will then have a mini-collapse and PM prices will skyrocket. I cannot tell you when this day will come but I can tell you its coming. After the mini-collapse comes the big collapse. Everything goes down. There is no place to run and no place to hide. People can only buy so much beans, band-aids and bullets so the rest of their assets will go into gold or silver.

What caused this collapse in price? The Bernanke didn't print fiat currency and the market got nervous. NOTHING happens by accident in this government. They, the fed, wanted this to happen. Once the market crashes enough then the FED/Obama can come to the rescue with more fiat printing because "the people" demand it. Right now "the people" do not want more printing of fiat currency.

The "crack" (fiat currency) dried up and the market is responding. I expect to see a 4-6 week downturn in prices maybe to the end of Oct. then the Bernanke will flip the switches on the presses and BAM another Trillion of fiat will be printed.

Watch silver and gold closely and buy at the lowest point of this dip. We will see a big surge after this crash of slv/gld paper.

Bottom line is the world is bankrupt, the USA is bankrupt, China will follow the USA, Europe is bankrupt and not a soul is doing anything necessary to fix it.

I quote one PM buyer from another forum.........

Brian said...

"I will make my case simply. Is the world bankrupt? Are debts spiraling out of control? Has anyone solved the problem? No. The fundamentals for wealth storage in PM's have not changed one bit. Until they do, buy with confidence. This time it is different. The world fiat systems are completely broken. The Keynesian experiment is over. Banks will try to manipulate paper prices down so that they can buy the physical on the cheap. Get there ahead of them."

[sargenv]

All I know is this...

Wife Quit her crappy job (of 6 years) over a year ago.. put in for about 20 jobs at that time (July-Oct 2010) and got no call backs.. finally hooked up a 7 month contract with a well known company.. they ended the contract after 7 months citing a change in direction, this was June of this year... wife put in 4 or 5 applications and was hired within a month.. and is now working full time for a company that has been in business since 1986 and is hiring.. So I wonder how much of this is "hype" and how much is "bs". We usually ignore the press on a lot of fronts, why are we believing them about this?

There were other "depressions and recessions", but the only one that most of us know is the one that happened in the 1920's - 1930's. There were a lot more boom and bust cycles than just that.. there was the Post Vietnam recession, then there was the post Gulf war recession (in modern times) and of course the technology bust of the early 2000's (when the internet bubble burst) but there were also several that happened since the founding of the US.. they go in cycles and always recover in some way or another.. sometimes within a couple of years, some lasting over a decade.. somehow the US has managed to stay together (well there was that time 1861-1865 where it tried to split up)..

[problemchild]

1 job does not make a growing economy. Maybe your wife has a skill that people need and not many others have. Most companies get 5,000 application for one janitors job.

I had over 100 customers before the economy crashed, I have much less then that now. Out of the customers that are left not a single one is making money. Most are just barely hanging on. My biggest customer is down 60%. About 30% of my old customers are out of business, another 30 are walking dead and the last 30 are clinging to life. The "hype" is being downplayed because a democrat is in office and the media is pro-democrat. Wait till an R is the president and then you will hear "The rest of the story".

In fact I think the R's are being setup. If the economy completely crashes while an R is president who do you think will get the blame and who do you think will come to the rescue?

If the R's were smart they would sit this election out and let NObama finish the crash of the economy and then come to the rescue. The D's would forever be destroyed and people would remember who destroyed the greatest country in the world.

My guess is that an R will be elected, things wont change, the economy will collapse and guess who will get the blame.

One last thing. At no point in time was the USA ever at 103% GDP/debt ratio and 100% of the banks holding 40% toxic assets along with 320 trillion in unfunded liabilities. This time is not like the last time. WW2 brought the USA out of a 13 year recession when we ramped up to 90% manufacturing. Today we are at 11% manufacturing and falling. There is nothing to "snap" us out of the depression this time.

Here is whats coming........

http://market-ticker.org/akcs-www?post=192780

All I know is this...

Wife Quit her crappy job (of 6 years) over a year ago.. put in for about 20 jobs at that time (July-Oct 2010) and got no call backs.. finally hooked up a 7 month contract with a well known company.. they ended the contract after 7 months citing a change in direction, this was June of this year... wife put in 4 or 5 applications and was hired within a month.. and is now working full time for a company that has been in business since 1986 and is hiring.. So I wonder how much of this is "hype" and how much is "bs". We usually ignore the press on a lot of fronts, why are we believing them about this?

There were other "depressions and recessions", but the only one that most of us know is the one that happened in the 1920's - 1930's. There were a lot more boom and bust cycles than just that.. there was the Post Vietnam recession, then there was the post Gulf war recession (in modern times) and of course the technology bust of the early 2000's (when the internet bubble burst) but there were also several that happened since the founding of the US.. they go in cycles and always recover in some way or another.. sometimes within a couple of years, some lasting over a decade.. somehow the US has managed to stay together (well there was that time 1861-1865 where it tried to split up)..

[Joewy]

1 job does not make a growing economy. Maybe your wife has a skill that people need and not many others have. Most companies get 5,000 application for one janitors job.

I had over 100 customers before the economy crashed, I have much less then that now. Out of the customers that are left not a single one is making money. Most are just barely hanging on. My biggest customer is down 60%. About 30% of my old customers are out of business, another 30 are walking dead and the last 30 are clinging to life. The "hype" is being downplayed because a democrat is in office and the media is pro-democrat. Wait till an R is the president and then you will hear "The rest of the story".

In fact I think the R's are being setup. If the economy completely crashes while an R is president who do you think will get the blame and who do you think will come to the rescue?


If the R's were smart they would sit this election out and let NObama finish the crash of the economy and then come to the rescue. The D's would forever be destroyed and people would remember who destroyed the greatest country in the world.

My guess is that an R will be elected, things wont change, the economy will collapse and guess who will get the blame.

One last thing. At no point in time was the USA ever at 103% GDP/debt ratio and 100% of the banks holding 40% toxic assets along with 320 trillion in unfunded liabilities. This time is not like the last time. WW2 brought the USA out of a 13 year recession when we ramped up to 90% manufacturing. Today we are at 11% manufacturing and falling. There is nothing to "snap" us out of the depression this time.

Here is whats coming........
http://market-ticker.org/akcs-www?post=192780

I completly agree. The same thing happened with my customers. They just evaporated one by one. Many of them were 50 year old companies. Its gonna get really interesting in the next year or so.

[Ripon83]

Very glad to have "retired" a year plus ago, but I thought about going back to work and seeing if there was something "Fun" to do. Tried to get hired at a gun shop but no one was hiring. Its not a priority for me. Before selling I had to close a non performing store that really "aged" out. 11 good people some of them college kids but 3 solid 7 and 8 year employees. I stay in touch with them by facebook; they've been unemployed a year now. They have experience, they are more then good at what they do, and simply are not getting jobs in a simple industry. Sad

[MudCamper]

Europe is bankrupt and not a soul is doing anything necessary to fix it.

Perhaps, but I think that at the last second, the Germans will bail out the spoiled lazy Mediterranean counties. I don't think they should, and it will only drag out the inevitable, but I think they may do it.

In fact I think the R's are being setup. If the economy completely crashes while an R is president who do you think will get the blame and who do you think will come to the rescue?

That's funny. It was Bush who started this train down the track to destruction. Any president, R or D, who inherited this current economy was doomed. To blame this on Obama is nonsense. He's more of a moderate conservative than Bush financially. If there were an R in office, do you think he'd cut the military, medicare, and social security? He wouldn't. And that's what needs to be done. No president, R or D, will do it.