Thread: Question: What Does a Dollar Collapse Look Like? Help....

Approximately 5 million homeowners in the United States are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

"Some of them right here on this site"

Originally Posted by stevetheroofer

Approximately 5 million homeowners in the United States are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

"Some of them right here on this site"

The bankers control our country and as Thomas Jefferson said...

Thomas Jefferson said in 1802: I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children
> wake-up homeless on the continent their fathers conquered.
>

That was then, now the bankers and corporations are trying to control our whole world it is not just one continent anymore people are being thrown out in the streets everywhere. It doesn't end there either. It is all about total world control and domination of every waking moment of our total existence.

Kathyet

Action needed in opposing Licenses for illegals in New Mexico. Please help!

http://www.alipac.us/ftopict-226748.html

Steve, it is so true, and sad that the banks are creating this mess. Of course the root issue has been the promotion of living the "American dream" and this was not the dream of freedom to pursue your aspirations, it was the dream the new generations felt was "having it all". Having it all meant credit beyond the income they had. The government pushed this on banks in the 90's, via Clintons push for "every American to be a homeowner".

As nice as that sounded, it was an impractical thing, not everyone who bought into the program had the income to be a homeowner. Then there was the group who felt they had the income and needed more. Boats, RV's, pools, ski gear, all manner of lessons for the kids....this was all through the use of credit cards. I remember a woman I worked with who used her credit card for all of her groceries. She was making so many credit card payments, nothing was left of her paycheck afterwards.

This is when I swore I'd live on cash. So far we are yet renters, but hope to have the chance to own, but only if we can work it out to be within the income we have.

Originally Posted by topsecret10

Originally Posted by SicNTiredInSoCal

TS, here's the scoop without getting too wordy (I hope).

We live on about 65K a year. We don't have a lot of bills except an $1140 a month house payment and a $350 a month car payment. I think at this time we only have about 10K in our retirement and about 8K for kids college. (They are 8 and 10) Used to have a bit more in 401K until the bust of 2008. We have not given hardly anything to it partly out of laziness and lack of motivation especially after seeing a good chunk of it go bye bye. We believe there will not be SS for us when it's time to retire so we are in the process of looking to buy another house and rent this one out at about an $800 a month profit. The profit will go towards the new house payment for now. The house we are in, we owe about $158K on. Our thinking is, A. Rents will be much higher in 10 or 20 years if we can stick it out. B. If we sell both houses for something smaller later in life, we might have a decent chunk to live off of.

What I really need to know is, what to do about the 401K. Can we roll it over into something else without being taxed to death on it or should we just pull out all together? Or, is it best to just leave it alone?

Here's something for you to look at while I do some more research. http://individual.troweprice.com/public ... 3BE699AFA5 If you have Income of 65,000.00 per year,you should consider a dividend re-Investment plan (DRIP) You can contribute on your own (picking the Investments that you like for the LONG TERM. If you have the credit to pick up real estate right now,and then use the properties that you buy for rentals,I would say that this Is a solid (no-brainer) for the LONG TERM. Interest rates are low,and you can get decent houses In DECENT NEIGHBORHOODS all across the country for a resonable price at the present time. One thing to keep In mind though Is that the big banks are still sitting on MILLIONS of foreclosures,and at some point they will have to put them on the market. When this happens,you could see home prices go even lower..... TS

Thanks TS! I will certainly look into the DRIP!

[quote][quote="topsecret10"]From one of my articles on The Motley Fool / Food Prices Paving Way for Social Unrest As world food prices continue to approach crisis levels, and global demand continues to increase, one international organization, The World Economic Forum, warns of possible “social and political instability.â€

Ok, I've been lurking around SHTF Plan's website and one of the posters there mentioned this blog called The Warning Signs. Maybe this will help others who feel like I do.

Ive been watching the chaos unfold in Egpyt and it looks like the end of the world over there.

Here is the latest:


Egypt: Preview of America in 2015

http://inflation.us
February 3, 2011


The rioting and looting currently taking place in Egypt is primarily a result of massive food inflation and shows what all major cities in the United States will likely look like come year 2015 due to the Federal Reserve's zero percent interest rates and quantitative easing to infinity.
On December 16th, 2009, NIA named Time Magazine's 2009 'Person of the Year' Ben Bernanke our 'Villain of the Year', saying he created "unprecedented amounts of inflation in unprecedented ways" and "When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke."
What started out a few weeks ago as protests in Algeria with citizens chanting "Bring Us Sugar!" and five citizens being killed, quickly spread to civil unrest in Tunisia which saw 14 more civilian deaths, and has now spread to riots in Egypt where 300 Egyptian citizens have been killed. Food inflation in Egypt has reached 20% and citizens in the nation already spend about 40% of their monthly expenditures on food. Americans for decades have been blessed with cheap food, spending only 13% of their expenditures on food, but this is about to change.
NIA was the first to predict the recent explosion in agricultural commodity prices in our October 30th, 2009, article entitled, "U.S. Inflation to Appear Next in Food and Agriculture", which said we have a "perfect storm for an explosion in agriculture prices". A couple of months later in 'NIA's Top 10 Predictions for 2010' we predicted "Major Food Shortages" and said, "Inventories of agricultural products are the lowest they have been in decades yet the prices of many agricultural commodities are down 70% to 80% from their all time highs adjusted for real inflation". Over the past year, agricultural commodities as a whole have outperformed almost every other type of asset, with silver being one of only a few other assets keeping pace with agriculture. (On December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce and it has so far risen 64% to its current price of $28.39 per ounce).
The world is at the beginning stages of an all out inflationary panic. Wheat, which NIA previously called on 'NIAnswers' its favorite investment besides gold and silver, is now up to a new 30-month high of $8.63 per bushel and has doubled in price since June of last year. Algeria bought 800,000 tonnes of wheat this past week, bringing their total purchases for the month of January up to 1.8 million tonnes, which was quadruple expectations. Saudi Arabia is also beginning to stockpile their inventories of wheat. Rice futures have gained 8% during the past few days with Bangladesh and Indonesia placing extraordinary large orders. Indonesia's latest rice order was quadruple its normal allotment and Bangladesh plans to double rice purchases this year. Meanwhile, the U.S., which is the world's third largest exporter of rice, is expected to cut production by 25% in 2011.
NIA considers rice to be one of the world's most undervalued agricultural commodities at its current price of $15.96 per 100 pounds and forecasts a move back to its 2008 high of $24 per 100 pounds as soon as the end of 2011. NIA believes cotton, at its current price of $1.80 per pound, may have gotten a bit ahead of itself in the short-term. In NIA's first ever article about agriculture on February 17th, 2009, we said that cotton's "upside potential is astronomical" at its then price of $0.44 per pound. NIA pointed to increasing sales to textile companies in China and the fact that cotton was down 70% from its all time high as reasons to be very bullish on cotton at $0.44 per pound. Early NIA members could have made 309% on cotton, but today we see much bigger potential in rice. The recent spike in cotton reminds us of the 2008 spike in oil. Although we believe cotton will ultimately rise above $3 per pound later this decade, we could possibly see a dip to below $1.40 per pound first.
Many people in the mainstream media have been criticizing NIA's recent food inflation report, claiming that agricultural commodity prices have very little to do with prices of food in the supermarket. CNBC's Steve Liesman, in particular, claims that "rising commodity prices won't cause inflation". Liesman has it backwards. NIA has never claimed that rising commodity prices cause inflation. Soaring budget deficits that the U.S. government can't possibly pay for through taxation causes inflation when the Fed is forced to monetize the debt by printing money.
Rising commodity prices are only a symptom of inflation. The reason NIA was so bullish on agricultural commodities going back two years ago when we produced our first documentary 'Hyperinflation Nation', is because while gold is the best gauge of inflation and is often the best tool for predicting future money printing, agriculture is where the majority of the monetary inflation ends up going after the Fed's newly printed money trickles down to the middle-class and poor. With gold prices already surging two years ago when we produced 'Hyperinflation Nation', NIA said in the documentary "food prices have the potential to surge most during hyperinflation".
One thing NIA is almost 100% sure of is that come year 2015, middle-class Americans will be spending at least 30% to 40% of their income on food, similar to Egyptians today. As NIA warned in its latest documentary 'End of Liberty', if you don't have enough money to accumulate physical gold and silver, it is important to begin establishing your own food storage, and store enough food to feed you and your family for at least six months during hyperinflation. Many store shelves in Egypt are now empty after recent panic buying, with shortages of nearly all major staple items throughout the country.
The U.S. Treasury is getting ready to sell $72 billion in new long-term bonds next week, as the U.S. rapidly approaches its $14.29 trillion debt limit. The debt limit is now expected to be reached by April 5th and Treasury Secretary Geithner warned the U.S. will see "catastrophic damage" if it isn't raised. With the Federal Reserve now surpassing China and Japan as the largest holder of U.S. treasuries, the real "catastrophic damage" ahead will be hyperinflation as a result of the U.S. government doing absolutely nothing to dramatically reduce spending. It is an absolute joke that Obama during his State of the Union address announced $400 billion in spending cuts over the next 10 years, but then the very next day, the Congressional Budget Office increased its 2011 budget deficit projection by $400 billion to $1.48 trillion.
Not raising the debt limit would be a good thing, as it would force Washington to live within its means. Sure, the stock market would collapse and the U.S. economy would enter into its next Great Depression, but at least it would save the U.S. dollar from losing all of its purchasing power. In fact, the standard of living for middle class Americans might actually improve if the government allowed the free market to put our economy into a depression, because goods and services would get cheaper.
The U.S. economy has become a drug addict that is dependent on cheap and easy money from the Federal Reserve. While Wall Street bankers took home a record $135 billion in total compensation in 2010, up 5.7% from $128 billion in 2009, this money was stolen from middle-class and poor Americans through inflation. The more monetary inflation (heroin) the Federal Reserve creates in order to satisfy the (in the words of Gerald Celente) "money junkies" on Wall Street, the more middle-class and poor Americans become dependent on unemployment checks and food stamps just to survive. Millions of American students are graduating college with hundreds of thousands of dollars in debt but no jobs. Luckily for them (but not holders of U.S. dollars), NIA is hearing reports from both unemployed and underemployed college graduates with student loans that the government is reducing their required monthly payments by sometimes 90% or more based on their current incomes.
China and Japan recently saw their credit ratings downgraded, while the U.S. credit rating remains at "AAA". NIA believes it would make far more sense for the world's largest debtor nation to be downgraded instead of the world's two largest creditor nations. The Federal Reserve's second round of quantitative easing has yet to even reach the halfway point and the Fed already holds about $1.11 trillion in U.S. treasuries. By the time QE2 is over at the end of June, the Fed will own $1.6 trillion in U.S. treasuries, about what China and Japan own combined. Shockingly, Kansas City Fed President Thomas Hoenig is already dropping hints about QE3. According to Hoenig, the Fed may consider extending treasury purchases beyond June 30th, 2010, (the scheduled completion date for QE2) if U.S. economic data looks disappointing.
With the Fed taking over as the largest holder of U.S. treasuries, China is beginning to rapidly move away from the U.S. dollar and into gold. In just the first 10 months of 2010, China imported 209 metric tons of gold compared to 45 metric tons in all of 2009, a stunning five-fold increase. While the western world is downplaying the threat of inflation as much as possible, Asian countries understand that hyperinflation is the most devastating thing that can possibly happen to any economy. The demand for gold in Asia right now is the most intense it has ever been, as they look to tackle rising inflation before it becomes hyperinflation.
The Chinese are so smart that families are now giving each other gold bullion as gifts instead of traditional red envelopes filled with cash. China is now on track to soon surpass India as the world's largest consumer of gold. The China Securities Regulatory Commission recently gave Beijing-based Lion Fund Management Co. approval to create a fund that will invest into foreign gold ETFs.
U.S. stock mutual funds saw $6.7 billion in net inflows during the past two weeks, the most in any two week period since May of 2009. The rioting, looting, and civil unrest in Egypt is now making the U.S. look like the safe haven of the world, even though it should be considered the riskiest place to invest. From the Dow's low in August until now, about $38 billion was actually removed from U.S. stock mutual funds, despite the stock market rising 20%. The Dow Jones has been rising from September until now solely due to the Federal Reserve printing around $350 billion out of thin air. When central banks print money, stock markets often act as a relief valve due to there being too much inflation going into the hands of financial institutions.
The U.S. M2 money supply surged by $46.6 billion during the week ending January 17th to a record $8.8623 trillion, following a rise during the previous week of $7.6 billion. The rise in the M2 money supply over the past two weeks of $54.2 billion equals an annualized increase of 16%. The M2 multiplier now stands at 4.218 compared to a long-term average of 10. When QE2 is complete, the Fed's monetary base will likely stand at $2.59 trillion. A return to the long-term average M2 multiplier of 10 means we are due to see a 192% increase in the M2 money supply and that is not even including a possible QE3 and QE4.

The U.S. economic ponzi scheme could unravel very quickly in the years ahead, with the velocity of money increasing much faster than anybody expects. As more Americans learn about NIA and become educated to the truth about the U.S. economy and inflation, a complete loss of confidence in the U.S. dollar could occur very suddenly. It is important for all Americans to prepare as if hyperinflation will be here tomorrow. At least in Egypt, their currency still has purchasing power and their citizens are trying to implement a regime change before it is too late. By 2015 in America, it will already be too late and the civil unrest here has the potential to be many times worse.

http://thewarningsigns.blogspot.com/201 ... .html#more

Neat thread.

Glenn Beck has been asking the question, "Can men govern themselves?" And answering it in the affirmative.

Economics is a most important part of that question, as sound economics is an essential element of governance, as bad economic policies will lead to bad governance.

There are two elements to a economic market, fear and greed.

Greed is the upside of the bubble. Fear is the side of the bubble that has burst.

If one can visualize, (as my puter skills are limited, otherwise I would draw a bubble in graph form) a graph form economic bubble and the time span representing 10 yrs (this could vary but would be at least 8 yrs. or so long, as time is essential in forming bubbles, and they must not be seen by the masses in order to work properly(?) Stealth bubbles work for those who understand economics and monetary policies, as central planning is not a matter of luck but a matter of understanding psychology and the political climates.)

The left side of the bubble (formation) is the "greed" side of the bubble. The apex or top is the saturation of credit, and the right side of the bubble is the aftermath, or the "fear" side of the bubble. (This should be seen as a macro bubble, in a macro economic sense, as the micro points would fit at various points along the formation of the bubble)

If one chooses to draw such a bubble graph and look at the time span spent forming and popping such a bubble (a complete lifespan of a bubble) then insert where (which side of the bubble) certain economic decisions were made (example: Loose credit, or stimulus, or inflationary, or deflationary monetary policy) or political decisions could be placed at various times in the life cycle of the bubble, would this centrally planned economy of ours start to make more sense?

What would happen if more people, the general public could understand and see the bubble forming? How would that effect our political and monetary decisions?

What side of the bubble is "trickle down" economics on? Or trickle up? Higher taxes? Inflationary periods? Deflationary periods? Loose credit? Commodity cycles? Growth and value stock cycles? Social policies on the elitists wish list? The left, right paradigm makes sense on the bubble formation graph.

Everything has a place and a time?

JMOs, and no, I do not smoke that stuff!

Does this make any sense to anyone?

Here is something worth reading. I posted it in "other topics" last night and no one commented on it yet. I thought it was pretty scary myself!
Worth the read....


http://www.alipac.us/ftopict-226963.html