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Now Officially Federal Reserve is the largest holder of US Debt. Its nickels away from 1 Trillion. Fed has been printing money & buying their own bonds (effectively monetizing debts). This is what destroyed Wiemar Republic (Germany) in 1919-1923.
Unfortunately Fed is headed the same route.. http://www.zerohedge.com/sites/defau...gs%2012.20.jpg
Fed Treasury Holdings: $1,000,341,000,000
"It's time for the Fed "one trillion" hats- as of 2:00 pm Eastern, the Fed's Treasury holdings has surpassed $1 trillion. Add to this the well over $1 trillion in Mortgage backed securities and agency debt held by the Fed, and there is your perfectly quantified reason why the S&P has just hit a two year high, and why the Nasdaq bubble is alive (all the newly printed money is keeping the party going). Basically, with the Fed the de facto purchaser of all securities with a yield of under 4%, the entire definition of a risk-free rate has to be scrubbed. To be sure, risk-free will very quickly become risk-full when and if the Fed, in its attempts to succeed with central planning where so many have failed before, either finally loses control over rates, or far less probably, decides to remove some of these extra trillions in free liquidity. Until then, the banker party is on in full force. By the end of this month, the difference between the Fed and the second largest holder of US debt will have surpassed $100 billion... and continue climbing at a rate of about $30 billion per week. And it will not stop (till US probably becomes Wiemar). http://www.zerohedge.com/sites/defau...Holdings_1.jpg
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Anybody subscribe to NIA? They have some interesting videos..
http://inflation.us/videos.html
A Must watch video:
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Interview Snips
1. Canadian banks are not as "bulletproof" as everyone thinks.
2. When the housing bubble bursts there will be tremendous consequences to Canadian banking system.
3. We are in a massive bubble and there will be an enormous comeuppance.
4. Canada housing bubble currently peaking.
5. When you are in a bubble, the psychology is such that you cannot see it for what it is. Talking to Canadians about the housing bubble is like talking to Americans in 2006. There is a tremendous sense of denial.
6. People pay 50-70% of their income for mortgage costs in places like Vancouver, but it's not just Vancouver. Such things are absolutely characteristic of a bubble.
Canada will play catch-up to the downside in the fairly near future.
7. Ireland-like dynamics absolutely coming to Canada.
8. There is also a tremendous commercial real estate problem that will affect Canadian banks.
9. Canadian banks have also acted as reinsurers in the derivatives market for a number of extremely risky things. So in a number of cases "the bucks stops with the Canadian banks".
10. Real estate prices will fall about 90% (in relative terms) on average. Deflationary credit collapse coming.
Its reaching biblical proportion, US Govt. is heading for bankruptcy...(give couple of years.... its getting almost guaranteed)
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This is in store
http://2.bp.blogspot.com/_AWiif9A8Fo...nLongCycle.png
source: http://ashedfc.blogspot.com/2010/12/...mic-cycle.html
Here is something worth looking at:
If you are poor, if you have net negative worth, there is hope. Once you have the bare necessities covered, buy silver.
Don’t expect inflation to bail you out. When we get a new currency system, your debt will likely still be there. What is coming is a dollar devaluation, not a hyperinflation with wages being adjusted. Dollar debt will be wiped out, but primarily with respect to gold, not with respect to wages.
If you want to escape from debt slavery, you must end up with gold. Only then will your debts evaporate. Only then will you have real wealth.
This is a two step process. Where gold may be too expensive, you can afford silver, and silver is much more under valued than gold. Buy silver now with whatever money you can scrape together. It’s much more important to buy silver than to pay down your debts. If you buy silver, your debts will go away after the revaluation.
The plan that you should follow is discussed here: http://incitertrading.com/?page_id=169 If you follow this plan, whatever you spend on silver now, can be converted to gold later with a gain in purchasing power of at least 200 to 1. In other words, for every one dollar that you put into buying silver now, you can have 200 dollars worth of wealth later to pay down debts and enjoy. I believe that this 200 to 1 factor is conservative.
This plan does not rely on political action, luck or trading skill. All you need to do is understand what you are doing and why, stick with it, take action now, and take action when silver becomes over valued with respect to gold.
Source: http://news.silverseek.com/SilverSeek/1294506238.php
Australia's going through the worst flooding in its history. Impact on the agriculture, mining, etc will be drastic in the months ahead.
Food inflation is already causing riots in Algeria, Tunisia, Chile, etc.. this just magnifies the problem. Inflation is coming into Canada, its just a matter of time: food & energy will get expensive, & jobs will get scarce.
Citigroup (Citibank) was on the verge of failure: Citigroup, the nation's third-largest bank by assets, was on the verge of being closed by regulators the week of Nov. 24, 2008 as depositors rapidly withdrew money and the bank's counterparties declined to provide it credit, according to a government report released Thursday. (Full 77page report, attached at the bottom of the link)
http://www.huffingtonpost.com/2011/0..._n_808721.html
I was looking for freebies and coupons in this site, have been for years..but today this thread caught my eye...
I'm not here to spam this forum,I love it here,but I run 2 forums on preparing for the economic down turn..its not about investing or anything like that, its a group of people that post the financial news and others reply..we tell them how we are prepping...
the one forum is called preparing for the future
and my other one is canadians prepping
If you google eighter one you will find the forums..I am kelee877 in them..its just to know I am not the only Canadian out there that is worried about the economy...
I am single mom with 3 kids, right now no job there are none in northern Ontario and its tough..I want to be prepared should we head into hyper-inflation...
If this was wrong to post please accept my apologies,but the more people that are awake to the fact that our economy is going to head down, the more who can be prepared and be part of the solution and not the problem..
“The following chart shows the current unemployment rates for 36 countries. You might think that most countries around the world have unemployment rates as high as ours here in the US at 9.4%. But the reality is that the US ranks pretty poorly compared to the rest of the world. The Eurozone is at similar levels to the US, but when most of the countries that have a higher unemployment rate than the US are collectively referred to as PIGS, it's not very encouraging.”
http://www.bmgbullion.com/library_images/x_550/1019.jpg
source: http://www.bespokeinvest.com/thinkbi...ent-rates.html
12 Economic Collapse Scenarios That We Could Potentially See In 2011
What could cause an economic collapse in 2011? Well, unfortunately there are quite a few "nightmare scenarios" that could plunge the entire globe into another massive financial crisis. The United States, Japan and most of the nations in Europe are absolutely drowning in debt. The Federal Reserve continues to play reckless games with the U.S. dollar. The price of oil is skyrocketing and the global price of food just hit a new record high. Food riots are already breaking out all over the world. Meanwhile, the rampant fraud and corruption going on in world financial markets is starting to be exposed and the whole house of cards could come crashing down at any time. Most Americans have no idea that a horrific economic collapse could happen at literally any time. There is no way that all of this debt and all of this financial corruption is sustainable. At some point we are going to reach a moment of "total system failure".
So will it be soon? Let's hope not. Let's certainly hope that it does not happen in 2011. Many of us need more time to prepare. Most of our families and friends need more time to prepare. Once this thing implodes there isn't going to be an opportunity to have a "do over". We simply will not be able to put the toothpaste back into the tube again.
So we had all better be getting prepared for hard times. The following are 12 economic collapse scenarios that we could potentially see in 2011....
Source: http://theeconomiccollapseblog.com/a...ly-see-in-2011
The downsizing of America – Oil production off 1980s peak and manufactures learn creative methods of repackaging inflation. (must read)
There is a slow burn going on and it is happening in your wallet and also in the gas tank of your car. The US Treasury and Federal Reserve have made it their mission to slowly cut the value of each one of those green dollars you have. Since many Americans are struggling to make the monthly bills, many producers realize that they cannot up the price on regularly bought consumption products. Places like Target have long learned to add a large section of produce and perishables in their stores since people have shifted from buying wants (HDTVs) to needs (bread and butter). What is interesting though is how the big jump in commodity prices was hidden for consumer goods. You may have noticed this merely by your own observation but creative packaging has hidden a large part of this inflation.
http://www.mybudget360.com/downsizin...chasing-power/
Four Reasons Why The Government Is Destroying The Dollar
The United States government has four interrelated motivations for destroying the value of the dollar:
1. Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.
2. It is the weapon of choice being used to wage currency war and reboot US economic growth.
3. It is the most effective way to meet not just current crushing debt levels, but to deal with the rapidly approaching massive generational crisis of paying for Boomer retirement promises.
4. Political survival and enhanced power for incumbent politicians.
A holistic approach to how individual short term, medium and long term pressures all come together to leave the government with effectively no choice but to create a high rate of inflation. If you have savings, if you rely on a pension, if you are a retiree or Boomer with retirement accounts - any one of these four fundamental motivations is individually a grave peril to your future standard of living. However, it is only when we put all four together and see how the motivations reinforce each other, that we can understand what the government has been and will be doing, and then begin the search for personal solutions.
http://danielamerman.com/articles/Four.htm
Finally, some good new to happy about...
"Strength in Canadian equities have helped Canadian pension plans surge ahead of their pre-financial crisis levels of 2008"
http://pensionpulse.blogspot.com/201...rge-ahead.html