Depression and Inflation on Horizon

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
CNN: Signs of Coming Depression

CNN speaks to John Williams (www.shadowstats.com) about the economy and what to do with your money. Investing in gold to hedge against inflation is his advice. There is some discussion about a possible depression + inflation in the coming years. Bank failures and government bailouts aren't finished yet.

Jim Rogers on CNBC: ABOLISH THE FEDERAL RESERVE and Bernanke

CNBC Business recently had Jim Rogers on who blasts Bernanke and the FED. He points out that the FED "printing money" (figure of speech), is only making it worse. He also agrees that letting these investment banks to go under is better than bailing them out.

He says invest in agriculture because those commodities themselves (not the stocks) will increase in value.

If the FED and Bernanke keep this up, they will make Ron Paul look like a modern day prophet. But alas, no one listened :(

Go to this site and check the years 2000-2008 and you will see

Gold has tripled in the last 8yrs

and

Silver has nearly quadrupled

Here you see Oil has tripled as well in the same time period 2000-2008

All because of inflation or the politically correct term "weak dollar".

We are going to see worse before it gets better folks :(


Radical action needed to curb US economic downturn

Some points of interest

STEVE KEEN: There simply has to be a ceiling at some point where the debt burden, no matter no low you drive interest rates, is so strong that people will not consider borrowing again. And when that downturn occurs, there's no engine for the Federal Reserve to re-staff.

ELEANOR HALL: So, where does that leave Ben Bernanke, the federal chairman? I mean, he's put in place the most severe series of cuts in decades, three per cent since September, what options does he now have?

STEVE KEEN: Well, I think he's going to put some of his academic experience and academic learning into action now because he's got his reputation to some extent by modelling what happened during the Great Depression and talking about potential causes.

ELEANOR HALL: You see a real parallel here with the Great Depression?

STEVE KEEN: I see a strong parallel in terms of the level of debt. The reason being that back in ... debt was really what drove the Great Depression and we're now talking about a level of debt that is 60 per cent above the worst the debt got to be during the Great Depression itself.
What? You mean there is a correlation to the Great Depression? I wonder where I've heard that before?



 

senseamp

Lifer
Feb 5, 2006
35,139
5,211
126
I am short US real estate and long gold and foreign currencies in my investments.
I am down big today, but using it as a major opportunity to add on to my positions.
Not buying this sucker rally for a second. The Fed can cause inflation, but it can't solve this crisis, the pain will come and the longer we delay the inevitable, the worse it will be.
 

miketheidiot

Lifer
Sep 3, 2004
11,062
1
0
inflation isn't really a concern when you are having a tough time getting people to consume or invest.

What inflation there is going in is mostly coming from the supply side of the economy.
 

ericlp

Diamond Member
Dec 24, 2000
6,088
190
106
Originally posted by: Dissipate
I am keeping an eye on the bank failures in real time at Bank Imploder
When I first saw the site I laughed and said that's classic...

Now when I see it... I think that pretty sad and it is...


What are you gonna do?

You could ignore it like bush does I suppose and make some more tin foil hats for yourself and your dog and hope it goes away.

Reality check people... I do think a correction is going to come in some form ... Hopefully it won't be too ugly... One can hope...

 

StageLeft

No Lifer
Sep 29, 2000
70,150
2
0
Calm down. Market rallied yesterday, it's all fine now. We're good, recovery on its way. Nothing to see here!
 

bamx2

Senior member
Oct 25, 2004
483
1
81
Polically driven election year short term fixes make news a lot better and the market goes up . Deficits ( domestic and international ), inflation , and our reliance on foreign oil are fundamental problems which which never seem to get addressed .


Originally posted by: Skoorb
Calm down. Market rallied yesterday, it's all fine now. We're good, recovery on its way. Nothing to see here!
 

sothsegger

Member
Jul 6, 2004
105
0
76
Originally posted by: Skoorb
Calm down. Market rallied yesterday, it's all fine now. We're good, recovery on its way. Nothing to see here!
this latest rally may prove to be short term as were the last couple
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
It's all cyclical.

BB has done a lot of research on the GD. There were many contributors, but a massive cause was the US worrying about its currency more than its people and their ability to stay liquid and get credit when needed.
 

Deeko

Lifer
Jun 16, 2000
30,215
11
81
"THE WORLD IS ENDING TOMORROW! SELL EVERYTHING YOU OWN FOR GOLD!"~Ron Paul
 

Jaskalas

Lifer
Jun 23, 2004
30,501
3,985
126
Originally posted by: miketheidiot
inflation isn't really a concern when you are having a tough time getting people to consume or invest.
Tell that to people buying anything in a store. That the rise in prices isn't really a concern.
 

SSSnail

Lifer
Nov 29, 2006
17,461
80
86
Originally posted by: Deeko
"THE WORLD IS ENDING TOMORROW! SELL EVERYTHING YOU OWN FOR GOLD!"~Ron Paul
Had you done that when he said it, you'd make a fortune. You still can by the way.
 

Slew Foot

Lifer
Sep 22, 2005
12,381
94
86
Stock market rallies recently havent been because of any good news in the economy, its only been on news of Fed bailouts/rate cuts/liquidity injections. This makes me think that these are the proverbial dead cat bounces, and were poised to go lower soon as soon as some shorts are squeezed out.

 

blackangst1

Lifer
Feb 23, 2005
21,277
913
126
Why cant we keep all these "the economy is depressed and crashing" posts in the same threads?

Just curious.
 

Deeko

Lifer
Jun 16, 2000
30,215
11
81
Originally posted by: SSSnail
Originally posted by: Deeko
"THE WORLD IS ENDING TOMORROW! SELL EVERYTHING YOU OWN FOR GOLD!"~Ron Paul
Had you done that when he said it, you'd make a fortune. You still can by the way.
That's lovely. I also would have made a fortune if I'd invested in Google when they first went public. It doesn't mean the world is going to end, or I'm going to be homeless in a week if I don't do it now.
 

Deeko

Lifer
Jun 16, 2000
30,215
11
81
Originally posted by: blackangst1
Why cant we keep all these "the economy is depressed and crashing" posts in the same threads?

Just curious.
duh, that wouldn't convey a strong enough message that our lives are ending because we didn't vote for the savior.
 

KB

Diamond Member
Nov 8, 1999
5,224
254
126
Invest in guns. Guns can get you gold. :)

Although we will have inflation I don't see this huge worry for depression. There are too many outside influences to allow another 1929.
 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
Originally posted by: LegendKiller
It's all cyclical.

BB has done a lot of research on the GD. There were many contributors, but a massive cause was the US worrying about its currency more than its people and their ability to stay liquid and get credit when needed.
Yes economic downturns are cyclical but you must admit this one is different. The inflation of the past 8 years, most of Americas wealth in jeopardy (housing), fiscal mismanagement, constant over spending, banks failing etc.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: PC Surgeon
Originally posted by: LegendKiller
It's all cyclical.

BB has done a lot of research on the GD. There were many contributors, but a massive cause was the US worrying about its currency more than its people and their ability to stay liquid and get credit when needed.
Yes economic downturns are cyclical but you must admit this one is different. The inflation of the past 8 years, most of Americas wealth in jeopardy (housing), fiscal mismanagement, constant over spending, banks failing etc.
No two economic cycles are the same, if they were, we'd be able to counter them quite easily.

Inflation wasn't horrible the past 8 years.
Most of America's wealth isn't even close, considering the base of the problem is close to 0% equity in housing, and there is little/no recourse to other "wealth", then the only "wealth" at risk is that of the owners of bonds, which you guys claim are all "rich people" so who cares, right?

Fiscal mis-management and overspending, by whom?

As far as banks failing, the weak will fail, the strong will survive. It's pretty simple. Lehman Brothers has about 100bn in liquidity lines that are untapped. They probably won't fail like BSC because of that.

 

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