The Beginning Of The End
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A Very Scary Christmas And An Incredibly Frightening New Year

Can you hear that?  It almost sounds like a little bit of peace and quiet.  This year, the holiday season has been fairly uneventful, and for that we should be very grateful.  But it isn't going to last long.  2012 is going to be a much more difficult year for the U.S. economy and the global financial system than 2011 has been.  So if things are going well for you right now, enjoy this little bubble of peace and tranquility while you can.  Because while things may look calm on the surface right now, the truth is that this is a very scary Christmas for financial professionals and world leaders.  Most of them know how fragile the global financial system is at the moment.  Most of them know that we are living in the greatest bubble of debt, leverage and financial risk that the world has ever seen.  As I wrote about the other day, world leaders would not be throwing huge bailouts around like crazy if everything was going to be just fine.  The truth is that we are rapidly approaching another financial crisis that may end up being even worse than the horrific crash of 2008.

Despite unprecedented efforts by the European Central Bank, the yield on 10 year Italian bonds is nearly up to 7 percent again.

Keep an eye on the yield on 10 year Italian bonds.  That is going to be one of the most important financial numbers in the world in the coming months.

But Italy is not the only problem.  The reality is that several European governments are teetering on the verge of default right now.  Meanwhile, confidence in the European financial system has been absolutely shattered and a devastating credit crunch has set in.  Nobody (other than the ECB) wants to loan money to the banks and the banks are massively cutting back on loans to businesses and consumers.  This is causing the money supply to fall.  The ECB is trying to hold things together with chicken wire and duct tape, but it isn't going to work.

In major financial centers such as the City of London, this is a very scary Christmas and the outlook for the new year looks very frightening.  Because financial activity has dried up so dramatically, a number of firms are already shutting down.  The following comes from a recent Bloomberg article....

London’s stockbrokers are shrinking as Europe’s sovereign debt crisis and competition from international firms squeezes revenue and fees.

“This isn’t just a blip, this is much worse,” said Tim Linacre, who is stepping down as chief executive officer of Panmure (PMR) Gordon & Co., a 135-year-old brokerage. “It’s a desert for activity, which is why you are seeing some firms throw in the towel.”

In the past month, Altium Capital closed its securities unit. Evolution Group Plc (EVG), Merchant Securities Group Plc, Arbuthnot Securities Ltd. and Collins Stewart Hawkpoint Plc have all accepted takeover offers from larger competitors.

“It feels worse than any other time,” said Lorna Tilbian, an executive director at Numis Corp. who began her career in 1984. “All I hear about is people putting up a white flag.”

Many out there are wondering if we are about to face another crisis like the one we saw back in 2008.

Unfortunately, none of the underlying problems that caused that crisis were ever really fixed.

We did not learn from history so now we are in for another round of pain.

In fact, Chris Martenson believes that this next crisis will be even worse than 2008....

There are clear signs of a liquidity crunch in the asset markets right now, and the question I keep hearing is, Is this 2008 all over again?

No, it’s worse. Much worse.

In 2008 there was a lot more faith and optimism upon which to draw. But both have been squandered to significant degrees by feckless regulators and authorities who failed to properly address any of the root causes of the first crisis even as they slathered layer after layer of thin-air money over many of the symptoms.

Anyone who has paid attention knows that those "magic potions" proved to be anything but. Not only are the root causes still with us (too much debt, vast regional financial imbalances, and high energy prices), but they have actually grown worse the entire time.

Frightening stuff.

A couple of months ago, I wrote about the coming derivatives crisis that could potentially wipe out the entire global financial system.

When the next great financial crisis strikes, there is going to be a lot of focus on derivatives once again.

Top global financial authorities such as Ben Bernanke continue to insist that derivatives are perfectly safe.

But there are other voices in the financial world that are warning that we are heading for financial armageddon.  For example,just check out what Mark Faber is saying....

"I am convinced the whole derivatives market will cease to exit. Will become zero. And when it happens I don't know: you can postpone the problems with monetary measures for a long time but you can't solve them... Greece should have defaulted - it would have sent a message that not all derivatives are equal because it depends on the counterparty."

That is very strong language.

Faber also believes that the stock market is going to get hit really, really hard during the coming crisis....

"I am ultra bearish. I think most people will be lucky if they still have 50% of their money in 5 years time. You have to have diversification - some real estate in the countryside, some gold and some equities because if you think it through, say Germany 1900 to today, we had WWI, we had hyperinflation, WWII, cash holders and bondholders they lost everything 3 times, but if you owned equities you'd be ok. In equities in general you will not lose it all, it may not be a good investment, unless you put it all in one company and it goes bankrupt."

Some of the top financial officials in the entire world have also used some very scary language in recent weeks.

The head of the International Monetary Fund, Christian Lagarde, recently stated that we could soon see conditions "reminiscent of the 1930s depression" and that no country on earth "will be immune to the crisis"....

"There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding but escalating"

But most people are so busy opening up the cheap plastic presents under their Christmas trees (that were mostly made overseas) that they aren't even paying attention to these warnings.

Look, when the money supply falls significantly it is almost impossible to avoid a recession.  Just look at the historical numbers.

Unfortunately, money supply numbers all over Europe are falling dramatically right now as an article in the Telegraph recently noted....

All key measures of the money supply in the eurozone contracted in October with drastic falls across parts of southern Europe, raising the risk of severe recession over coming months.

Confidence in the banking system in Europe has never been this low in the post-World War II era.  Sadly, most people simply do not understand how bad things have gotten for major European banks.  One Australian news source recently put it this way....

"If anyone thinks things are getting better, they simply don't understand how severe the problems are," a London executive at a global bank said. "A major bank could fail within weeks."

Others said many continental banks, including French, Italian and Spanish lenders, were close to running out of the acceptable forms of collateral, such as US Treasury bonds, that could be used to finance short-term loans.

Some have been forced to lend out their gold reserves to maintain access to US dollar funding.

The outlook is very ominous.

Financial professionals all over the globe are telling us what is coming if we are willing to listen.

The following comes from a report recently produced by Credit Suisse's Fixed Income Research unit....

"We seem to have entered the last days of the euro as we currently know it. That doesn’t make a break-up very likely, but it does mean some extraordinary things will almost certainly need to happen – probably by mid-January – to prevent the progressive closure of all the euro zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks."

The first six months of 2012 are going to be a very key time.  National governments and big European banks are scheduled to roll over huge mountains of debt.  But if they can't find any takers that could bring the global financial system to a moment of great crisis very quickly.

The following is how former hedge fund manager Bruce Krasting recently described the problem that Italy is facing....

At this point there is zero possibility that Italy can refinance any portion of its $300b of 2012 maturing debt. If there is anyone at the table who still thinks that Italy can pull off a miracle, they are wrong. I’m certain that the finance guys at the ECB and Italian CB understand this. I repeat, there is a zero chance for a market solution for Italy.

But even if we don't see a formal default by a major European nation such a Italy, that doesn't mean that major European banks are going to make it through the crippling recession that has now begun in Europe.

Charles Wyplosz, a professor of international economics at Geneva's Graduate Institute, is absolutely convinced that we are going to see some major European banks collapse....

"Banks will collapse, including possibly a number of French banks that are very exposed to Greece, Portugal, Italy and Spain."

Authorities in Europe are saying the "right things" publicly, but privately they are preparing for the worst.

As the Telegraph recently reported, the British government is now making plans based on the assumption that a collapse of the euro is only "just a matter of time"....

A senior minister has now revealed the extent of the Government’s concern, saying that Britain is now planning on the basis that a euro collapse is now just a matter of time.

Yes, we are heading for a huge financial collapse and massive economic trouble.

So enjoy the good times while we still have them.

They are not going to last too much longer.

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  • mondobeyondo

    Happy New Year….??

    *sigh* At least the champagne was good.

    • wilson

      Merry Christmas and Happy New Year to all that visit this site. I’m looking forward to more grand discussions in the coming year(s).

      Thanks Michael for a great site.

      • Michael

        Wilson:

        You are welcome, and hopefully this upcoming year will be an enjoyable one for all of us.

        Michael

  • Chris

    You know I may be barking up the wrong tree here but reading between the lines I’m just starting to get the impression that possibly you may think things aren’t looking quite so good……

    • Michael

      LOL

      Nice one Chris! :)

      Yes, it is true, I am not optimistic about the next few years.

      Michael

      • http://www.planorperish.com Gutter Economist

        How about the next few DECADES?

        Foreign corporations / investors now own most of the USA and about one third of the national debt.

        Most Americans living today will never see prosperity return to the USA.

        • Michael

          Yes you are right – once our prosperity is gone it is not going to come back.

          Sometimes I talk about short-term time frames and other times I talk about long-term time frames. In the short-term we are heading for recession and in the long-term we are heading for depression.

          Michael

  • Senator Ozmo

    The time grows short. Michael,

    Have you thought about writing some on how people can begin to prepare? I know I’ve been following for a short time and I’ve just recently “Woke up” and began to realize what is actually happening.

    The answer is not taking from anyone to fix anything so please do not post it. The only answer right now is being prepared for some really bad things to happen in the near future. Become more self reliant, learn how to plant a garden urban or rural, learn how to make your own energy, learn how to reuse things, learn how to go without, learn how to help your neighbor (you might need thier help later and its a good thing to do anyway), learn how to take ownership on your own choices, learn that no one can make you decided to do anything, educate yourself in everything, learn how to debone a chicken, learn how to raise a chicken, there is so much we as PEOPLE can do to end our reliance on business/big brother, but we don’t.

    I usually don’t post much, but I have to say thank you for the time you put into this. If the readers get nothing from this please get this idea. QUESTION EVERYTHING, BE NICE TO PEOPLE AND DON’T BE AFRAID TO WAKE UP AND TAKE CHARGE OF YOUR LIFE.

    Again Michael thank you for the time you put into this. I hope people wake up and while scary start becoming more self reliant.

    • dmitry

      I second to this Michael.
      Please write something on how we can prepare.

      thank you & happy holidays!

      • Michael

        Dmitry:

        I have done some articles on that in the past, but not for a while.

        I will start sloshing that idea around in my brain and see if I can come up with anything. :)

        Michael

    • luis

      thanks for waking me up bro

    • Rancher

      I concur as well. Around our home and operation no one is allowed to complain or speak ill of a situation unless they have at least TWO workable thought through optional solutions to offer to remedy said complaint or observations.

      This accomplishes two things real fast. Cuts down on endless conversations which go no where and two, it brings forth possible better thought through solutions which if acted on will then put to rest the concerns and let us get back to playing poker and having some real productive time spent.

      Keep repeating the same problems without solutions will just get old. Ask any married couple….

      • Pete McLaughlin

        Hi Rancher
        I like your solution. Here are my suggestions.
        1. get a piece of property and plant fruit trees, berry bushes, vegetables. There is a family in Pasadena raising 1600 pounds of food a year on a city lot.
        2. Reduce your family living expenses to as close to zero as possible. If you live where it is sunny put up solar panels, rainy collect rain water etc.
        3. Anyone in the family who is unemployed should be working full time on these projects.
        This Depression is for keeps. Saying it is to hard is not acceptable.

        Pete

      • SCyankee

        Thank you for your comment’s contribution to sanity on the internet!

        If we (we=people who read this and other sites like this) truly do believe the messages and outlook this site represents, how can we still be thinking that blogging (whining) and voting (wasting gas) are remotely adequate responses to the historically bad times we’ve been living in for over 3 years now.

        Doom is imminent, if not already here. Time to start solving instead of just ranting.

        But what can we do? How do we demand drastic change and enact it if we get it?

    • DownWithLibs

      Ozmo,

      Keep posting questions and people are usually happy to help you find a solution. Some will post what they are doing to prepare for a bumpy future.

  • Bill

    Sorry Michael, I disagree with the first part. I think we all should have a very humble Christmas by being very thankful for what we have now. I couldn’t agree more with the second part- the New Year will be very frightful. Enjoy every moment you can this Christmas because the stench from what will come from the fan in the coming New Year will be nasty.

    The more lies we hear from politicians, bankers, economists, pollsters, and statiticians etc, the more it will stink. EXAMPLE-this week we heard that claims for unemployment dropped. I’m not sure if this was true but if it was it sure led to irrational excuberance in the stock market. I don’t think the 99% were celebrating. Did a big bunch of people just find jobs?

    It would be so nice if those who have now left the beltway ring would loose their way and never return so America could have freedom again.

    • BenjiK

      Your example of unemployment numbers are spot-on. I just have to look at our circle of friends and family to see the truth in this. Out of 8 guys, who were all gainfully employed in 2006, only 1 still has their job, albeit without a raise since 2007(previously he was receiving a raise once a year). The other 7 did receive unemployment benefits until they ran out. Now 2 are down to a single income household, 2 are in federally-funded college programs, 2 are still working in their trade, but as “independent contractors” as their employer could no longer afford to keep them on the books full time and 1 has started his own business without much success. So have these 7 people contributed to the feds distorted numbers for drops in unemployment benefits? Of course, however, that sure doesn’t mean they have found gainful employment and their quality of life reflects such. So that is the lesson here, although the number of people applying for unemployment benefits is going “down”, the stark reality is the job market and the general economy continue to crumble, despite the federal governments attempt to paint a rosy picture with skewed statistics and overly-confident sound-bites.

      • Gary2

        good insight. All one has to do is look around them to see that the UE is worse than ever and I am not even including the huge underemployment issue.

        • BenjiK

          That’s the key word Gary, UNDEREMPLOYMENT. With a very few exceptions, everyone I know is now working for mid-1990′s wages, while the cost of commodities, housing and utilities has risen dramatically. Remember when $13/hr was an adequate wage to support a family? Now that same wage qualifies as “poverty level”. While we may disagree on the cause and solutions to our economic in-sovereignty, the truth is we are all in this together, for better or worse, and unfortunately there is not a foreseeable “light at the end of the tunnel”.

  • McKinley Morganfield

    The great contraction will occur, it is inevitable. The longer this slow motion train wreck is propped up a few weeks or months at a time with ‘magic’ money from Uncle Ben and the other central bankers, the deeper the eventual crash will be. If they had allowed the too big to fails to fail in 2008-9 and stopped deficit spending we would have experienced a 10-15% drop in GDP. If they had stopped after QE2 and cut spending to balance the budget we would have suffered a contraction of 20-30%. However, they continue to throw money into the abyss of debt so when it finally implodes we’ll see a GDP contraction of at least 50%.

    We’re trapped in a damned if you do and double damned if you don’t dilemma. Get ready as best as you are able.

    • Ben Dover

      Agree. NOBODY is too big to fail. If the TBTF crowd had been allowed to fold, we would be three years into a recovery. Hats off to Iceland for refusing IMF “help”.

    • Bill

      QE to infinity, hyperinflation, then devalue with new currency. Life goes on. 90% of population will not care because “bread and circus” will not stop. For those unfortunates who complain, the new defense bill will allow the govt to take you away to the new FEMA camps. Think I’m wrong. Google it yourself. SOPA will stop internet sites, like this, from spreading information around. We’re doomed.

  • http://apocalypseparadigm.blogspot.com/ A’Esquecida

    NO!! This is not appropriate!!

    Dear Brothers & Sisters in Christ,
    Let us pray that ALL the hearts of mankind will this Christmas Eve become the Cradle of the Infant Jesus.
    Let us never forget that NOTHING, no matter how terrifying the evil one makes it, NOTHING is Greater than God, Almighty.
    Therefore, gather your simple belongings, round up the flock of your family, & make your way to the manger. THERE IS ALREADY A COMET IN THE SKY NAMED LOVEJOY THAT COULD NOT BE DESTROYED & MARKS THE HEAVENS!!
    & to those who mock your faith, bring them the Joy of the birth of the Son of God, lying in a manger, in the company of the animals, Angels & the Holy family.

    MERRY CHRISTMAS.

    http://www.youtube.com/watch?v=ZDmFbWlVV0A&feature=results_main&playnext=1&list=PL144B32E40EA97D06

    http://www.youtube.com/watch?v=qbg_dhI4XCs

    I heard a loud voice from the throne saying, “Behold, God’s dwelling is with the human race.
    He will dwell w/them & they will be his people”
    & God himself will always be w/them.
    He will wipe every tear from their eyes,
    & there shall be no more death or mourning,
    wailing or pain,
    [for] the old order has passed away.
    The one who sat on the throne said,
    “Behold, I make all things new.”
    Revelation 21: 3-5

    Dear Brothers & Sisters in Christ,

    • Joel

      @ A’Esquecida

      First, This is out of the topics. But anyway… let’s look at it.

      Second, Make your homework, the Savior was never born on the 25th of december (it’s a pagan feast not a biblical feast – even if people enjoy it).

      Third, Revelation 21 is speaking about a time AFTER a millenial peacefull, happy and blessed reign of the Savior (I don’t think that kingdom has already been put in place – at least, I did not read anything about it in the newspapers, and nothing on CNN or FoxNews).

      Fourth, nothing in Revelation 21 have to do with our actual world (the last time I’ve check, this world looked more like a toilet sink than a peacefull place without death, mourning, sadness and pain. Michael make a whole blog showing the situation of this world which underline part of that point).

      Fifth, to have hope is a good thing. But hope is one thing, reality is another one. We live in reality with the hope that things will get better. The reality is : this world is nowadays a big piece of crap. The hope is : it will be a better place one day. But before this hope becomes reality, there are a lot of things which will happen… and not good ones.

      To be a believer is a really good thing also, but believers must realize that we are responsible for preparing ourselves and keep in touch with the news so we can escape those things (not my words, but those of the Savior Himself – Mark 13:33,35-37). In that sense, bloggers like Michael are usefull for everyone since they show us things we have no idea about.

      Anyway the last time I checked “God” did not live with the human race… who would like to live in a “toilet” room like this actual Earth?

  • RSteiner

    The most scary part is that all your statistics have been doctored to look better than they really are.

    In truth things are much worse than we all can even imagine.

    http://in-other-news.com/2011/Manipulation-of-the-market-basket-and-economic-growth-figures

  • Antonio Gonzalez

    No money supply, where go the money printed. The people don’t
    have any money. Then the money is going to the 1 percent.

  • Paul

    Much of this cannot be explained by theories of co-incidence, incompetence, or bad fortune. The only explanation that makes any sense is one of planned destruction. We will know why when the “replacement” systems are fully proposed to save us all. When we see what they are we will know why these times have been allowed to be as they are. We’ve already seen calls for global banking and currency systems…..create problem to offer solution?

    • http://www.planorperish.com Gutter Economist

      Most problems in America today are straight out of the NWO planning guide.

      http://100777.com/nwo/barbarians

      • D

        Wow, interesting. I was mind-boggled when I realized the interview was 40 years ago, and everything the NWO man claimed then is happening at this very moment.

  • http://AllenClark.org Prepared Pastor

    Things are dire predictions, but we can only ultimately control ourselves. Use this delay to become as self-sufficient as possible in key areas such as water, food storage and production, security, etc. Move as much debt as you can from secured assets you want to keep to unsecured debts. I rolled my retirement over to a self-directed IRA and purchased rural real estate at distressed prices. At the very least borrow against your retirement (tax/penalty free) and buy precious metals that you keep in your possession.

    • McKinley Morganfield

      “.. we can only ultimately control ourselves. Use this delay to become as self-sufficient as possible in key areas such as water, food storage and production, security, etc.”

      Exactly!

    • r.bitting

      prepared pastor? Amazing! A pastor, with the calling from God to lead others to Jesus Christ is on an economic collapse blog advising others to buy precious metals and roll over IRA’s, without so much as a mention of the Lord Jesus Christ, who is the ONLY hope for these people. There are many on this site that have yet to accept Christ as Lord & Savior. Will their gold and their silver, or their beans, bullets, or bandaids be able to save them if the wrath of God abides on them ( and if they don’t know C

  • Ken

    I wish there was something to give me hope in the future, but if there is anything, I sure am not seeing it. The economy will crash if our leaders keep us on the same path, and that looks like what they intend to do. The only question is WHEN is all hell going to break out.

  • knightowl77

    What happens in Europe will most certainly affect our future, and yet we have no control over what happens there. All that you and I can do is prepare the best we can for the hard times that are even now approaching and may be even at the door…
    I do not know whether this will be a depression, the great depression or a Mad Max scenario, but time is running out…..

    Merry Christmas to Michael and everyone that writes here.

    • Michael

      I am the only writer here. :)

      Michael

    • knightowl77

      Ah yes, I should’ve said …”and everyone that comments here”…

  • http://EconomicCollapse Already Gone

    Reo Speedwagon – “Let The Good Times Roll”

    • Gary2

      their ONLY good song was “riden the storm out” They could have quit after that one song.

      That was a great song!

  • T

    Housing sales worst on record for this year. Things will only get worse in all areas. All the band aids governments have been putting on things are starting to peel off and they won’t stick anymore. Just think of the fed spending billions to keep things manageable for a week. Next time it will be a day and then they won’t be able to do anything. I remember reading this blog last year at this time, it said 2011 would suck and Michael was right. Now 2012 will be even worse. If you think about it too long it will get depressing but we are the 1% who are in the know and some of us are prepared best we can.

    • Michael

      T:

      Thanks for sticking with the blog for an entire year. :)

      Michael

  • gary2

    It would be less scary if we would simply tax the rich and spread the wealth. over 80+% of Americans-right/left/center agree the rich do not pay their fair share. They need to be taxed HARD.

    2012 will be the year of the left regaining power as the 2010 repube landslide win has made things worse not better. Everyone can plainly see that they only care about the rich (holding up payroll tax cut for middle/poor to protect millionaires from a small surtax).

    Here in WI we already have enough to recall Walker as of today 12/23/11. We sould be able to get almost a million signatures which is about 1 in 5 people signing or 20% of the population.

    The right is going down hard, very hard, hopefully for a generation. A new new deal, higher taxes on the rich and corporations, (maybe single payer by 2014?-I admit this is a strech goal).

    2012-the year of taxing the rich!

    • nowwthen

      Merry Christmas Gary, Michael and everyone who reads / comments on The Economic Collapse!

      Gary, I disagree with your philosophy but admire your tenacity. Most Americans realize there needs to be an increase in federal revenues to help stave off a national bankruptcy. They also realize that those revenues need to go toward reducing our debt/deficit.

      I don’t think of taxing the rich as a punishment. Taxing them at rates previously thought fair would provide a necessary source of revenue. This, combined with some reduction in spending, would help put our country back on track.

      Our president ordered Simpson Bowles to come up with a debt/ deficit reduction package stating “nothing’s off the table”. They did this and presented their plan on time a year ago. Neither the president nor the congress could agree to this rational, bilateral, plan that had everyone giving up a little so that nobody had to lose everything.

      I feel no allegiance to either major party. They are both full of grandstanding obstructionist self serving phonies concerned far more about the next election than the well being of America as a country.

      The only way we as a people can voice our objection to the way this country has been hijacked by these miserable whores is to vote out every incumbent to let them and the world know that the American people’s 11% approval rating of congress is serious and this is the way an American revolution is conducted in 2012.

      • Gary2

        Merry Christmas to you also.

        Maybe I can provide a counter weight to Michael s incessant right wing slant!

    • McKinley Morganfield

      Take every penny (100%) from the ‘rich’ (those with >200K in income) and it would barely cover one year of the $3.7 trillion federal budget; leaving nothing for state and local budgets, and leaving nothing to invest in the private sector because productive people will not work/create/develop wealth to have it all taken away. Obviously this would leave nothing to fund the next year’s federal, state, and local budgets. A perfect recipe for disaster as the federal government would go from borrowing 45% of its annual budget to borrowing 100% of its annual budget (and of course leaving nothing to fund state and local governments).

      One form of insanity is doing the same thing over and over and over again and expecting a different result.

      • Gary2

        your numbers are WAY off. The rich have so much money it would cover everything plus make tuition free for all at colleges.

        Fact check your info.

        I do apologize that I do not have link right now to post you can go to. The info is our there.

    • SpiderMonkey

      Gary2:

      I am truly sorry that you are having a rough patch right now, I have seen your posts for the past year or so. Many people I know are going through the same. However, I think attacking the rich will fail in the long run.

      These folks are adept at hiding their wealth from taxation and confiscation. They can purchase politicians that won’t give us the time of day. While we work and struggle to get ahead or stay afloat, they have the time and resources to protect what is their.

      I truly hope 2012 is a better year for you and yours (and anyone else that is hurting financially or otherwise).

      • Gary2

        Thanks-I really appreciate you saying this.

        I am more optimistic that maybe in 2016 we can have a real third party that will mitigate some of what you said regarding the rich buying politicians and hiding their wealth. We can have a real sea change if their is a will.

        • SpiderMonkey

          Well Mate, you are a more optimistic than I. I tend to think that it is too late to work within the system. I hope that I am wrong.

          We shall see.

  • http://www.muccings.blogspot.com Gerald Mucci

    I read so many opposite predictions: deflation vs. inflation. Deflation when, how deep, and how long. Inflation when, how high, and how long? Which comes first? Which sectors? How likely is it that the past 2 years experience will continue with housing prices countinuing to deflate and food and energy prices continuing to inflate? Buy commodities, gold and silver, we are advised. For what purpose? To barter after a total collapse, or as a hedge against a devalued dollar? Deflation adds value to the dollar, so in a deflation, gold and silver are bad investments. Experts are all over the map on what direction are economy is headed. Some even believe we will just remain in stagnant doldrums for an extended period without any major convulsion. What’s the likelihood that all the fiscal paranoia is for naught and the economy will maintain some moderate equilibrium for the forseeable decade or longer and all of these highlighted gyrations result from focusing on events that will in the end keep the economy from gyrating out of control?

    • Nexus789

      Neither the Austrian school of economics with their idiot austerity programs, or supporters of Keynes have an answer to avoiding the collapse of massive debt expansion. The result be a massive and very rapid collapse. Therefore, if a Republican, Democrat, or any politician anywhere in the world says they have a solution beware….there is is none using the current conventions and paradigm. They have let the bankers trash everything.

      The current system of debt supported consumerism is a zombie and the touched up figures of housing starts and increased speeding, etc, are to be viewed against the backdrop of a still collapsing financial system. Quantitative Easing by the Fed (a front for and owned by the banks) has merely kicked the can down the road a number of times but the economy is now analogous to drug addict that now requires a higher and higher dose (more money) to have even an a small impact. We have past this point.

      The European Central Bank recently loaned $600billion to the banks to help ease liquidity – has had no effect as the vast majority of the money was re-banked with the ECB. So the scum bag banks will not lend to each other and once this happens there is nothing Central Banks can do to increase lending so we have a liquidity crisis looming (they will lend but at extortionate rates). All QE does is enrich the bankers and make the situation worse – the bigger the debt the larger and faster the eventual collapse.

  • tappedops

    Hate to break the bad news… but the bankster cabal cat is just a tiny facet of the big picture. This little piece of limited hangout should be enough to spark some interest for the half-awake wanna-bees to do some real diggen into the truth about WHY anyone would want to implode the world economy… hmmmm

    Its ok Mr M… i know this is outside you pay scale…

  • http://buffaloholstercompany.blogspot.com/ Buffalo Holster Company

    Not much time left, Paul is right…I think, tic toc tic toc… Prepare, resist…

  • Highspeedloafer

    Why is everyone in such a tizzy? Everything is gonna be fine, got me some them Air Jordans 11 today. I only had to stomp on about 25 people to get to em. Its true M.J. is in the 1% but he is a good fella to the 99, lettin us get these wheels for only 180. It was a steal.

    Yes the Banks may have all the $$$$$, but I’m OK, thanks to MJ.

  • Gary2

    Ok low information right wingers-convince me that we do not need to heavily tax the rich? You of course will not be able to so lets put to rest the BS you right wingers spew out and agree that we need to TAX THE MOTHER ******* RICH HARD. THE FOLLOWING IS NOT ACCEPTABLE AND NOT TH3E AMERICA I LOVE. YES FOLKS THE RICH HAVE PLENTY TO TAX!

    Walton deemed a “billionaire bully” by Brave New Films, has an estimated net worth around $21 billion, JWJ reports. As a family, the Waltons control 49 percent of Wal-Mart and are, says JWJ, the richest family in the United States, with a combined net worth is $93 billion. The Walton Family has as much wealth as the bottom 30 percent of American families combined—more than 35 million families.

    The family’s dividends from their Wal-Mart stock alone are more than $2 billion a year. Just using their dividends, they could ensure that a million Wal-Mart employees make at least $12 an hour instead of the current average of $8.81 an hour.

    Just last month Wal-Mart, under Rob’s leadership, slashed health care coverage for hundreds of thousands of Wal-Mart employees and their families—right before the holidays. What a scrooge!

    • quick

      If you took all of the waltons wealth, not just tax them a percentage, but take it ALL – we would still have a 900 billion dollar deficit this year. Then take all of Buffets and Gates wealth and we would still have an 800 billion dollar deficit.

      The US CANNOT tax their way out of this mess.

      Government is spending WAY TOO MUCH money.

      Grow up and do a little math

      • Gary2

        but if we took all their wealth ( I am not advocating this just most 90% of it) The Wal mart workers could be paid more and not need to use the social programs like state health care for low income and food stamps.

        I disagree with your premise. Its not just taxing but also spreading the wealth. You must have not read my entire post.

    • McKinley Morganfield

      “The Walton Family has as much wealth as the bottom 30 percent of American families combined”

      You are so exasperating in your blatant and willful ignorance.

      I’ll explain this for you in simple terms that the average 3rd grader could readily understand:

      The bottom 30% have ZERO wealth. They have far more debts than the total value of whatever assets (cell phones, flat screen TV, a car, clothes, welfare checks, food stamps, etc.) they may possess. In fact they actually have negative wealth. (Less than ZERO.)

      So according to your blathering idiocy I possess more wealth than this 30% you reference simply because I have ‘wealth’ greater than ZERO or in other words my assets are greater than my debts (in fact I am debt free).

      Here’s a clue: Move to Cuba to find the utopia you imagine.

      • Gary2

        you are completely missing the point. I am comparing people in the top 1%. By your reasoning (and I use the term reasoning very lightly here) There is only one poor person as there will always be someone who has a bit more than they do.

        No one said anything about Cuba. I do not know why you right wingnuts keep bring that up. How about the Scandinavian countries who are beating the USA in every measure?

        I thing the right has to throw out Cuba and North Korea as they would have to admit socialism works if they talked about the Scandinavian countries.

      • Gary2

        BTW:You are so exasperating in your blatant and willful ignorance.

        That is how I feel about you. It is exasperating that you on the right keep repeating untruths that are so obviously wrong.

        Do you really think that if you say it a lot it will all of a sudden be true?

    • anon1011

      Gary,

      We would love nothing more than to tax the rich. That would solve a lot of our problems (though not all) and bring the wealth inequality down. But we have two problems:

      1. They’ve bought Congress already, so even if they somehow write a law raising taxes on them, it’ll never get enforced.

      2. If we tax the rich too much, they’ll just move their headquarters to the Cayman Islands or somewhere else where they don’t have to pay taxes. So instead of having little money come in from the rich, we’ll have no money from them. We’re trying not to make them mad with too many taxes.

      • BenjiK

        Well said. Yes, we all in one form or another believe the ultra-rich should be held to a higher tax code, but as you stated, they can and will move that money out of this country. We live in a very competitive world, and let us not think for a moment that if we impose stricter tax laws that another nation won’t welcome “big money” with open arms and much LOWER tax rates. They most surely will, and believe it or not, we will suffer greatly at the loss of those tax dollars.

        • gary2

          I would be willing to risk it as I do not really believe they will move anything. Where are they going to move it too? Eurpoe? The government can go after them regardless. They called out many scum bag rich who have money in Swiss accounts to cheat on their taxes.

  • ScoutMotto

    I agree with being prepared as much as possible. Let’s take advantage of the time they are buying for us with their kicking the can down the road. There is no point in delaying getting prepared when they give us more time to do so.

    Get some boxes of long-term storeable food. Get some six-gallon jugs and fill them with water and a teaspoon of bleach. Get every debt paid off that is possible to pay off. Get motion-sensing lights for the front and back of the house. Get whatever personal protection you can afford and remember to respect it.

  • Emily

    Merry Christmas to you and your family Michael. All has been said that needs to be said, it is time that we act. We now understand the problem and have a good idea of what is about to unfold,this will be the true test of the character of the American people. May God save us all.

  • luis

    ooooh no this is really bad news

  • luis

    senator ozmo thanks

  • claudio

    Rome created the civilized world; now Rome can dump it into misery and depression; Nerone knew it!!…it’s the same old story, dummy!!

  • William

    Instead of the US government trying to protect and prepare America for these hard times, the federal government is determined to start more unnecessary wars of choice for Israel, all fought with borrowed money. Americans are IDIOTS to support this sort of governance.

  • Colin

    I think we live in a fluidic dynamic environment where there are alternating moments of peace and panic, like a ship reeling in storm-tossed waters. The question for a ship, and for us, in those waters is if she can ride the wave, or will the wave roll the ship?

    Here is what I am thinking, and visualizing, of (from the movie “Perfect Storm”):

    http://www.youtube.com/watch?v=8lYTIYvKTNg

  • http://economicsurvivor.net Russell Cavanagh

    Fully agree with your assessment that Europe is teetering on the verge of collapse. Not sure if it is a good or bad thing that folk here in the UK are partying on regardless – http://economicsurvivor.net/2011/12/24/final-foray-festive-fork-out/ – but acquiring survival skills will be key in 2012.

  • joe

    I often see comments asking how to prepare. Here is what we have done. Pay off your mortgage-If you have to-sell and buy something smaller for cash. Move out of a city if you can. With your home secure, buy as much food as you can afford. A good source for food is the Mormon Church (No, I am not a church member and you do not need to be a member). They have food centers where you can buy #10 cans of food (dried beans, rice, flour etc)-a lot less expensive than other sources. Buy guns and ammo and be sure to take a NRA gun class-and practice practice practice. If bad times come, there won’t be enough police to help you. If we are wrong, well, you have a place to live and food to eat. Given the coming inflation, it will still be a good investment.

    • TX4Life

      Couldn’t agree more!

  • Nick

    Good article, but you shouldn’t be so focused on the money supply contracting. I think that may lead some to believe that the solution to the problems is to print, like the Federal Reserve is doing. Everything Bernanke has done has been to keep the money supply from contracting. You should look at the monetary base for a chart indication of the extraordinary measures undertaken since 2008.

    Bernanke has expanded the Federal Reserve’s balance sheet by more than $2.5 trillion to keep the money supply from contracting, that is reflected in the monetary base. How does the Fed expand its balance sheet or buy assets, though? Well, they simply print money to do that. [Keynesians will call this a liquidity trap, but it's really just propping up insolvent institutions with liquidity. They will point to Japan, but Japan is on the brink too and hasn't had to deal with $100/bbl oil during most of its ZIRP]

    The ECB could do the same as the Fed and they already do to some degree by jumping into secondary markets, and I think they ultimately will print basically infinite Euros because they will be scared to death when it’s obvious the Euro is staring into the abyss. Indeed, even Merkel will be so scared she’ll help Draghi re-fill the ink on the Euro printers, but that won’t solve the underlying problems.

    The truth is the world, especially the western world, has lived far beyond its means and consumed far more than it produced for at least 40 years. We were able to do that because of the world’s dollar-based monetary system and western dominance of the financial markets in NYC and London.

    The roots of the crisis lie in the over-expansion of credit, just like during the Great Depression. Artificial interest rates encouraged over-consumption and the mis-allocation of capital. This created the bubbles from the NASDAQ one to the housing to now the bond bubble and dollar bubble (the final bubble). Now, bubbles can be pretty great when you’re in the middle of them (see roaring twenties), but the bill always comes due.

    There will be a currency crisis of unprecedented proportions because sometime probably within the next year or two…

    Ludwig Von Mises sums it up nicely:

    “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

    • Nexus789

      It is all planned as the ‘bubbles’ are the way the elites skim off wealth/value they have not earned or created – the more volatile the bubbles the more commissions and transactions. A large percentage of commodities (oil for instance) price volatility is speculative rather than the physical balancing of supply and demand.

      I agree with your observations as I also commented above and added that there is no answer from within the current economic paradigm from either the right or left – the can has been kicked down the road and we are now approaching a Von Mises moment – for instance it is likely consequence that the pile of $700Trillion and meaningless derivatives could cease to exist overnight and be reset to ZERO and all the financial institutions become bankrupt simultaneously. This will obviously have serious impacts on our normal day-to-day existence.

  • mondobeyondo

    Said the little lamb to the shepherd boy
    Do you hear what I hear?
    Ringing through the sky, shepherd boy,
    Do you hear what I hear?
    A mall, a mall
    Filled with shoppers all,
    Screaming and breaking glass doors to grab Air Jordans, iPads, Playstations and 70% off jewelry….
    Screaming and breaking glass doors to grab Air Jordans, iPads, Playstations and 70% off jewelry.

  • Laura Sweeney

    Would it matter whether a person is in Europe or America at this point? What is going to happen to the health care systems in both the EU and the USA? I follow your site every day! You predicted a lot of these economic troubles and downturns before anyone else.

    • Michael

      Laura:

      I am so thankful for you and for everyone else that checks out this site every day. May this upcoming year be the most blessed that you have ever had.

      I think during the upcoming downturn there are going to be plenty of products and services available – I just don’t think that there will be much money floating around to pay for them.

      A lot of people are going to lose their jobs and a lot of people are going to be really hurting.

      Now is the time to be developing alternate streams of income.

      Michael

  • Pingback: A Very Scary Christmas And An Incredibly Frightening New Year « AMERICAN WATCHMAN

  • Kw

    Michael,
    God Bless you and Merry Christmas!
    Thank you for your websites. Reading them is a part of my dauiy routine.

  • RevBryan

    Merry Christmas, Michael and thanks for the articles on both your sites.
    I am in agreement with you that we are headed for even more difficulties if we do not get our financial house in order; but that does not seem likely with the folks who are currently managing our national government.
    God bless.

  • http://thenorthernsurvivalist.com TheNorthernSurvivalist

    I’m brewing up some hooch for new years eve, it should aged 11 days. :)

    You can use your food stamps or your devalued dollar to buy sugar, yeast, and Welches pure grape juice. Consult youtube or the videos on my web site.

    Truth is, Christmas? Be glad to see it go, and hopefully the sheeple go back to intelligent thinking, or at least common sense.

  • Rancher

    Good advise could be like … if the market is going to crash this year then get out. Take your penalty hit. So What? It comes due a year later and perhaps you could have gotten back in then to avoid it? Or not, but at least you will have more than worthless paper. A small hit now on more funds is better than a smaller hit later on almost no funds after the crash.

    If it crashes 3-4 thousand points think of the leverage you would then have with the cash you had from before…. Now I call that advise. I call reading about doom and gloom and doing nothing is a good way to prime the pump so later on you can more easily say… “I knew I should have done something…I knew it” Now I am broke and ruined and in a fema camp on a cot……

  • Bob

    When the Frank-Dodd regulations go into effect in April 2012, the Derivative Market will stop overnight. Being as the Derivative Market is a Ponzi and Check Float scheme all in one, it will be the financial meltdown point for the US and the world markets. When $1.6 quad-trillion dollars vanish overnight it will rock the world.

    • McKinley Morganfield

      “When the Frank-Dodd regulations go into effect in April 2012…”

      Bob,

      You might want to examine all the fine print as the Frank-Dodd regulations were in fact written by lobbyists from the financial giants such as Goldman-Sachs and AIG.

      http://www.youtube.com/watch?v=NIHJ9RMAVGI&feature=related

      • Bob

        All you have to do to break a ponzi/check float scheme is slow it down. I read an IMF report that stated the Frank-Dodd bill will have a $5 trillion impact on Manufacturing and Food production in the US. If the GTP of the US is $15 Trillion, what will will a $5T hit on food and what little Manufacturing we have left, do to it? We already have the OWS people set to blame Bank of America, AIG and Goldman Sachs. All you need is to slow down the Derivative market and make it implode and you have the financial collapse that everyone is afraid of. Frank and Dodd both left town and Obama will say it was done for our protection as he impliments marshall law to protect us. It might be the Ceasar moment for the United States when the republic is replaced with something else.

  • http://cherylkicksass.blogspot.com Cheryl

    We’ve been living with extremely evil people at the helm in gov’ts a very long time. This is likely the flushing out of them that they are projecting their evil onto the masses. This is their evil deeds and acts coming upon us, always remember that and you’ll be fine. Pray, and honor other good people, know that this is all due to extreme evil on our planet that is going to be flushed out eventually.

  • Rancher

    I read this awhile back…

    The average retail space per worldwide consumer is about 6-8 square feet. However, in this consumer based nation our average retail space per person is about 65 square feet. I see something very very wrong with that.

    • Nexus789

      You are slaves to the god of consumerism and debt serfdom.

  • Jerry O

    2012 is going to look pretty gloomy
    for the US.

    We continue to spend and spend thinking
    that there is no tomorrow.

    We are slowly digging ourselves deeper
    and deeper in debt until there will be
    no way out.

    Civilizations have gone through this
    many times in the past and we refuse
    to learn from history.

    http://theelevationgroup.net/yearinreview/index.php?a_aid=160667&a_bid=418a665e&chan=y

    There is still time to take advantage
    of this crisis.

    Learn from the past and make preparations
    as the wealth of the world prepares to be
    transferred to those in the know.

  • Snuffy

    How about fighting fire with fire?

    ETF’s like SRTY short the Russel 2000 with 300% leverage, using derivatives. There are others that go long / short on other major indeces, with leverage.

    Just make sure you sell when you see profits, because as it flounders around, you lose money in the up and down fluctuations.

  • Old Man

    For the first time, IMF reports Canadians richer than Americans per capita:

    http://www.huffingtonpost.ca/2011/12/24/canada-us-gdp-canadians-richer-americans_n_1168769.html?ref=canada

    For decades, Wall Streeters and conservative politicians have brushed off Canada as a ‘socialist, liberal’ country not worthy of attention. For sure Canada has more social programs, and more liberal in its politics. It’s simply a country that care more about people than the balance sheet bottom line.

    It was the hubris of the US ‘masters of the universe’ who blew up the economy. After things blew up, existing social services can no longer be funded, which is now under the gun to be cut as well. The two feed on each other until who knows when.

    What’s the secret of Canada success? Balance. Rationality. Clean politics. Sound management. No corruption. Canada steadfastly refused to participate in any of the Wall Street-directed con games – because they knew they were con from day one.

    That does not mean our northern neighbor is home free. Challenges are all over. But given Canada fine performance the past few years, they should be able to handle what’s coming even better.

    • Dave M

      The “secret” of Canada’s success is the reserve ratio banks are allowed to keep.

      Canada was contemplating allowing the banks to get into the insurance industry just prior to the 2008 downturn and it was only luck that allowed them to escape.

      CMHC, Canadas version of Freddie and Fannie, is in even worse shape than its American counterparts.

      Of the 10 provinces only 2 have a balanced budget.

      There are some bright spots however, Canada is getting rid of gun control, it produces far more oil than it consumes and the Federal government has an understanding of debt.

      The provinces and municipalities still think running deficit budget are the way to go.

      • No Hockey Guy

        Dave M:
        You sound like a classic neocon. And a classic imperialist who can’t stand some foreign country making it because they are smarter. Read WSJ and those elitist big money mag and you see their daily dumping on the EU money problem, wishing them blow up faster and bigger just for the satisfaction of it. You fit that crowd well.

        Let me point out some uncomfortable facts for you:
        a) Cdn banks are not only allowed to run insurance, every one of the big banks have been running insurance business for a decade. They did not blow up – in fact making money and adding strength. Why? Because they run the combined bank/insurance business smart and free from American style corruption. Luck? You are delusional.

        b) What’s the reserve ratios of Cdn banks. It’s 12%, max 15% in special cases. Go check out this fact. What’s the reserve ratio of US banks? Do I need to expose their freaking insane numbers?

        c) CHMC is NOT a mortgage company like FF & FM. Only Cdn banks are allowed to issue mortgages. CMHC is an insurance company – but only insure the commercial banks on qualified mortgages. (Qualification is tough – at least 20% down for example.) They don’t insure individuals. CMHC get paid by the banks to insure their own mortgages, and has more than sufficient capital to cover any loss, which averages less than 1%. You don’t know anything about the Cdn banking or mortgage situation.

        c)Cdn provinces are completely different than US states. US state are prohibited from running budget deficits. Cdn provinces have not give up that power and can issue bonds and run deficits. They have operated this way for over a century. But their debts must back up by the highest quality assets and collateral. Canada has its own rating agency to rate provincial debts and all are in fine shape.

        d) Canada DID NOT give up on gun control, which is still tough. But it cancelled a registration program that is far too complicated and cost too much money. Try to bring an innocent little hand gun into Canada you will taste instant arrest and put in the slammer. There is no constitutional rights to own firearms in Canada.

        e) The federal debt/GDP ratio of Canada in around 35%. That’s a hell better than 100% in the US. To achieve this status take far more than ‘understanding’. It takes people who are responsible and smart.

        • Dave M

          I think I understand Canadian finance better than you, I am a fourth generation Canadian.

          Have a nice day!

  • http://www.TotalCollapse.com TotalCollapse.com

    Looks like 2012 will be the worst year of most peoples lives…

    (and they have no idea its coming)

    TotalCollapse.com

  • Sgt shut up

    Ya cant eat precious metals. IF the ******** did hit the fan gold is worthless. Why the hell would I trade my food or ammo for something that I cannot eatand cannot use to heat my home. Gold people crack me up. Really think about it and then tell me. ******* atleased if I had a dollar bill I could wipe my ass with it.

    • Rancher

      May I have your gold/silver? It is what God showed Adam… remember ;-0 Been around since time began as well. Good enough for me… Besides I hear that line from people who can nor afford it every week. Go Figure.

    • Lennie Pike

      Gold is money. Money is necessary to make the exchange of goods possible. Money will always be in use.

      How will gold be worthless, especially when the shtf?

    • Lennie Pike

      Gold and silver is what all of us who will not accept the nwo’s world currency will be using for money until the world soldiers round us all up – so at least allow us our last meals.

    • Lennie Pike

      Then you’re correct actually – gold will be worthless to some – but not to others.

    • Barn Cat

      You buy gold and silver for use during hyperinflation. It’s what you should have your savings in. When a loaf of bread costs $10,000 you can trade your silver to buy food. Sometime after the collapse the government will get order restored. There will be a new currency backed by gold and silver. You can trade your PMs for the new money.

      • Lennie Pike

        If you throw in your soul with them.

    • mondobeyondo

      No, you can’t eat precious metals. But if you have enough of them, you can exchange them for food, water, electricity, etc.

  • r.bitting

    America will fall, and the world with it. God’s kingdom will then be established in righteousness. Trust in Christ or you will die in your sins.

  • Matty

    Can’t wait for the college loan inflated tuition bubble to burst. What a bunch of false hope. Get a degree-take out loans- no worries you can pay it back with a great job. This is one bubble I want to see bust.

    • BenjiK

      Agreed, and it will make the housing bubble seem like peanuts……..

  • http://liankhawla liankhawla

    “And in those days shall men seek death, and shall not find it: and shall desire to die, and death shall flee from them.”Rev. 9:6

  • SamColt

    Merry CHRISTmas Michael.

  • Bret Simpson

    You yak like old ladies….it’s over..so get over it.So,what is the debate?393 Co2 plus methane..all your crap won’t matter when you can’t breathe.

  • Harvey Wallbanger

    To the tax the rich guy:

    Your solution has been proven to be a mathematical non starter. The fact of the matter is, it is ALL our fault. The scapegoating and blame laid on others is more of that hippie generation nonsense.

    Welfare, credit cards, social spending, debt, that is what has caused this problem. Everyone wants something for free. Look at North Korea and see how well that is working out for them.

    Take personal responsibility, stop demanding that someone else take care of you. Really? You want the government to pay for your health care? So that means that the government will decide if and what health care you get. The end result will be that you have surrendered your own basic life decisions to a faceless bureaucrat for the promise that someone else will pay for it.

    The same goes for food, education, and shelter. There is no promise that you will get a good job, have nice things, or never be hungry. The fact of the matter is, if you believe that you are entitled to these things paid for by the mythical “someone else” than you are part of the problem.

    This is why I emigrated out of the US and to a country that has very little social programs. I got sick of the entitlement, and regulation mentality. I make it myself, and I can afford to be poor. I can also afford to be rich and live the nice middle class American existence at less than $1000 US a month because I have no debt and pay very little tax. I own my own home, and property tax is less than $200 a year. I pay for my roads, parks, and police thru the home owners association @ $30US a month, my kids go to private schools at $1500 a year and they get a good solid education.

    Tell me this Mr Someonelsepayforallmystuff: why isn’t that Washington DC has the highest school drop,out rate and the highest amount spend per student? Spending 22 thousand dollars per year per student is insanity. Your solution is more of this?

    • denny

      Yeah, right. Glad you emigrated. Stay gone. Not many references to the ‘entitlements’ of the rich boys. CATO study 2002: Social welfare $53 billion. Corporate welfare $93 billion and guess what? The numbers are even more disparaging now. You guys work hard, all right – to convince the rest of us that you’re not living on the dole. Take your He-Man, self made crap, leave and go exploit someone else. Look around you, rich boy. EVERYTHING you see was not only made by us, but created by us. Sounds to me like you’re the one currently living on the public dole. So relieved that you finally found the ultimate ‘live cheaply’ locale. Have a lot of peasants there, do ya? They’re the ones paying for your kids’ private school. Like I said – stay gone. It’ll be cheaper for us in the long run.

      • Nexus789

        Nice comments…good repost to the I’m alright jack and self righteous drivel.

    • Paul

      Which second or third world country have you gone to to be rich Harvey? How many are even poorer in this country so you can live rich on your “middle-class” wage?

    • Gary2

      You want the government to pay for your health care?

      Yes! better that any insurance company who needs to turn a profit. They are the real death panels.

      • http://www.mat-rodina.blogspot.com Stanislav Mishin

        The problem is not in a single payer insurance, the problem is in government run medicine, which you also advocate. I grew up under that sterling system, where my teeth were drilled without pain killers, where minor surgery, such as tonsils were taken out without pain killers and I was but 5 years old then. Tell me Gary2, ever know how surgical steel tastes? Well more then thirty years later I can still taste it. You know zip but the Marxist rubbish you’re fed on, while living a lot better then any Marxist state ever did or could.

        Try living in a roach infested 2 room apartment (and we were lucky, we had our own apartment, as opposed to communal apartments, not that I’d expect you to have a clue as to what that is), where my father an engineer made less money then a street sweeper but did a hell of a lot more for the economy. Where you had to bribe the butcher just to see the real cuts of meat in the back instead of the bone and fat that was put out for display and for which you had to wait in line.

        What the hell do you really know? Nothing and a lot less then nothing.

        • gary2

          no one ever said communisim. That is a ploy the dolts on the right use to scare low information voters.

          Us thinking people know that the Scandavian countries and beating the USA in almost every catagory and they are way more socialist. Maybe they know something we here in the USA don’t?

        • gary2

          Ha Ha pain klillers were not invented when you were little. I think it was the 1800′s before morphine was discovered.

    • Gary2

      I can certainly admit that the entitlement mentality is a problem like:

      corporations feeling entitled to the benefits of being in the USA while outsourcing jobs overseas and having our military protect them

      Like the rich and corporations not even coming close to paying their fair share of taxes hedge fund 15% cap gains.

      Like all the corporate welfare companies like wal-mart feel entitlement to such as state welfare for their poorly paid employees.

      How about big RX companies feeling entitled to ripping off the tax payers who got a law making the gov not able to negotiate drug prices.

      Or wall street socializing their losses and privatizing their gains? expecting taxpayers to bail them out?

      So yes I would have to agree that the entitlement mentality is an issue.

      Like many right wingers you focus on the actual people and the poor using entitlements but fail to focus on the real problem-corporate entitlements which are by far and away the biggest issue.

      Corporate welfare and welfare for the rich are millions of times bigger than ANY welfare for the poor and that’s the welfare those on the right keep cutting welfare for the poor.

      Please Please try critical thinking-you would not even post what you did if you stopped and thought about what you are saying.

    • Gary2

      Everyone wants something for free. Look at North Korea and see how well that is working out for them.

      Why do you low information right wing nuts keep bringing up North Korea? You must not be in reality. No one on the left is advocating we be like North Korea. More like the Scandinavian countries who are, and you can check for yourself, beating the pants off the USA in just about EVERY category.

      You really need to grow a brain cell.

    • jd

      Where do you live? Would love to know.

      • gary2

        south east wi

    • tonybinca

      Fractional reserve banking is the culprit, perpetrated by the same greedy bankers for centuries. It is not all our fault(s). It is those who create money out of thin air and the governments that collude with them who saddle the world with debt. End of discussion.

      • David G.

        To be clear, fractional reserve banking DOES NOT CREATE MONEY out of thin air. They create it out of debt. You borrow a million dollars from a bank on Friday for a business venture. On Monday you open an account at that bank (or any other, since they settle between banks every night) for 1 million dollars on which you plan to draw. Now that bank has a million dollar loan “asset” plus a deposit of 1 million dollars which is also an asset and they are now authorized to LOAN 90 percent of that deposit. So borrower #2 comes in on the next Friday and borrows 90 percent of that 1 million dollars. The bank now has three assets (the million dollar loan, the million dollar deposit, and the 900,000 loan). Now borrower #2 comes in on Monday and deposits his $900,000 in the bank and the banks has four assets–all of it steaming from the initial loan of 1 million dollars. That revolving door keeps going round and round and until the 1 million dollar initial loan is shaved off ten percent each time a new loan is made until its been loaned out and deposited about ten time. Money is created out of DEBT, not out of thin air. And if everyone would just stop opening accounts in the banks and hoard their money under their mattress you could get rid of a lot of bankers.

  • Dave M

    I like your posts. One thing about all the gloom and doom….there is a real economy that exists other than the financial market.

    Main stream media likes to create the impression that the world revolves around the derivitatives market, CDO’s, MBS’s ect.

    The people penning their stories may well believe it also, but the truth is all the hype they expound is used to justify criminal bailouts of an industry that is actually on the fringe of the economy.

    Look at the crap the Eurotrash are foisting on the public. Prime ministers being replaced with unelected bankers.

    Iceland set the lead for what should be done. Let the crooks go bankrupt. Iceland’s economy is growing faster than any in Europe now.

    • Otown Right Guy

      This is a good and often overlooked point. The financial “industry” aka the money changers, produce nothing. If they all went away tomorrow we would be better off. Economies would go back to being local. It would be impossible to become or maintain “ultra-rich” status, and the wealth would be spread around naturally, and not by the force of government.

    • Patriot47

      Spot on, Dave. We are definitely hanging over a cliff. All we need to do is let the banksters go bankrupt. Iceland is proof we have nothing to be afraid of. Some initial pain, but a quick recovery.

    • Ghulam

      Yes, the people in Iceland even had sufficient confidence in their own brains not only to let the bankers go bankrupt, but they even had the strength to go their own way in foreign police, recognizing Palestine. You do not think that these issues are related?

      • Pabz57

        How did Palestine get dragged into this?

    • http://www.mat-rodina.blogspot.com Stanislav Mishin

      Eurotrash? Well, guess that’s why they call you guys Amerotrash in return.

  • http://n/a sean

    Universal debt forgiveness. This will come when the banks have eaten their fill and there is no fat left. Once there is a point where consolidation can happen on a large enough scale(global maybe)we will get one global bank, one global control center, one currency.
    Then and only then the delete key will be punched as we will all be on the same team, so to speak. No road warrior, no global destruction, just a slow errosion, to the point that the controllers can sell their plan. We are not there yet. We are not to the point where the torture and the screams are extreme enough. As sure as this was all orchestrated, the author(s) has an ending.
    Things will get rough, people will and are dieing. However controllers need something to control and if the entire system collapses there is nothing to rule. The big have yet to fall far enough though and when it does they will sell everything to make it go away. The puppets(politicians) will risk their necks for the puppetmasters(bankers)some may even die but in the end it will be one big happy family.
    Cake will once again be served.

  • Shiznoz222

    forgiving debt is pointless unless you affect fundamental change in the economic constructs that perpetuate the creation of such. You cannot simply “forgive” debt either. The ********* rolls downhill and “forgiving” all debt without abolishing the monetary systems that create the debt results in an insurmountable degree of economic disparity. Seriously, you should educate yourself on such matters before you open you mouth just to be separatist or counter-culture. You are not contributing anything of use by doing so.

  • Strangewalk

    To those who ridicule the gloom and doom: Not only can it happen, it will happen because recent history has established such a strong pattern of disaster. In the East: The collapse of the Qing Dynasty in China, the era of warlordism, followed by civil war, the brutal Japanese invasion, more civil war, the Great Leap Forward, the Cultural Revolution, now a fake economy with hundreds of millions suffocating in deathly pollution. In the West: WW I, the Bolshevik Revolution, Stalinist purges, the Great Depression, WW II, the atomic bomb, the Cold War, countless regional wars, the recent financial collapse, the AIDS epidemic, epic famines in Africa. The Spanish flu of 1918-1920 killed by some estimates up to 100 million people worldwide, and there has been an absolutely explosive increase in drug abuse, crime and family breakdown. The 20th century saw the Jewish holocaust, the Serbian holocaust, the Aremenian holocaust, the Ukranian holocaust, the Cambodian holocaust, the Rwandan holocaust and other holocausts in Africa, and holocausts that were not called holocausts but were disguised as wars. This is just the outline, the details are much, much worse. Historians call the 20th century the ‘century of Satan’–and that it was. This one will be much worse, and we will soon revert to a downward spiral that will make what came before it seem mild.

    • Reality

      You sir hit a home run!

    • Sigh9d

      When I talk to most people, the level of denial about the impending catastrophe never ceases to amaze. Part of this stems from wholesale American exceptionalism. The other part has to do with astonishing ignorance about modern history. Your comment rings loudly true–well said!

      • DB200

        This denial is not confined to the USA. This “normalcy bias” is everywhere. Most people just can’t believe that there is a severe depression looming.

  • callmecordelia1

    Hey Michael, I thought of you today while I was in church for our Christmas services. We were singing “I Heard the Bells on Christmas Day”, and I was touched by two of the verses.

    And in despair I bowed my head:
    “There is no peace on earth,” I said,
    “For hate is strong and mocks the song
    Of peace on earth, good will to men.”

    Then pealed the bells more loud and deep:
    “God is not dead, nor doth he sleep;
    The wrong shall fail, the right prevail,
    With peace on earth, good will to men.”

    Good will prevail. God will prevail. Thanks to people like you, we will be more prepared to handle the trials that will definitely come in the meantime, but we know who wins. Thank you for all you do. Merry Christmas!

    • Michael

      Thank you for the encouragement. I am so thankful for everyone out there that is preparing so hard for the times that are coming. A lot of lives will be saved because of it.

      Michael

  • Mart

    Read Lau Tse. The best Chinese export product ever. Read the Bible. These best selling Jewish writers didn’t intend to win the Booker-prize.
    Learn that spiritual insight is the only useful value. God bless you.

  • Patriot Alice

    Europe is going to follow the USA with devaluation of their currency with print, borrow and spend/bailouts, until Globalization has brought us down to the rest of the world’s poverty level…It’s too late to reverse this trend, we are all being impoverished with the divaluations through QE3-4-5-6 etc…Globalization has been backed up by every politician for the last 35 years, and I don’t see anybody who’s willing to reverse it, except maybe Ron Paul, but you know that promises are almost always broken after the win the Presidency…

  • Hope my neighbor doesn’t read this ;)

    Virginia State Trooper at a local Diner: “You have no idea how close you are to Marshal Law.”

    A neighbor shared the above statement with my wife a few days ago, and I admit she got it third hand. I have no idea when the state trooper said it, so take it however you want, but I thought it was interesting enough to share here.

    Equally interesting was another comment that was made to my wife during that conversation: “at least I know if I get into trouble I can count on my neighbors to help”. Did you catch that? My neighbor’s strategic plan is to count on their neighbors to help them. I wonder if they know the strategic plan of most of their neighbors is also to count on their neighbors to help them (of course that actually assumes most of my neighbors even know what is about to happen so they can make the ‘mental preparations’ to depend on their neighbor’s to help them). And then people wonder what is wrong with our country….

    Don’t misunderstand me, my wife and I are not cold and heartless. Our garden, greenhouse, and orchard have been designed to grow extra large crops of food so we can help others when the time comes, but really- isn’t it just a better plan for people to trash their dependency mentality and actually use their God given abilities to provide for themselves and their families?

    God’s blessings in 2012 to the author and readers of this blog.

  • Gary2

    A Real Eye Opener
    WHY is the USA BANKRUPT?

    Informative, and mind
    boggling!

    You think the war in Iraq was costing
    us too much? Read this:

    1.
    $11 Billion to $22 billion is spent on welfare
    to illegal aliens each year by state governments.

    Verify
    at: http://www.fairus.org/site/PageServer?pagename=iic_immigrationissuecenters7fd8 >

    2.
    $22 Billion dollars a year is spent on food
    assistance programs such as food stamps,
    WIC, and free school lunches for illegal aliens.

    Verify
    at: http://www.cis.org/articles/2004/fiscalexec.HTML

    3.
    $2.5 Billion dollars a year is spent on
    Medicaid for illegal aliens.

    Verify at:
    http://www.cis.org/articles/2004/fiscalexec.HTML

    4.
    $12 Billion dollars a year is spent on
    primary and secondary school education
    for children here illegally and they
    cannot speak a word of English!

    Verify
    at: http://transcripts.cnn.com/TRANscriptS/0604/01/ldt…0.HTML

    5.
    $17 Billion dollars a year is spent for
    education for the American-born
    children of illegal aliens, known as
    anchor babies.

    Verify
    at http://transcripts.cnn.com/TRANscriptS/0604/01/ldt.01.HTML

    6.
    $3 Million Dollars a DAY is spent to
    incarcerate illegal aliens.

    Verify at:
    http://transcripts.cnn.com/%20TRANscriptS/0604/01/ldt.01.HTML

    7.
    30% percent of all Federal Prison
    inmates are illegal aliens.

    Verify at: http://transcripts.CNN..com/TRANscriptS/0604/01/ldt..01.HTML

    8.
    $90 Billion Dollars a year is spent on
    illegal aliens for Welfare & social
    services by the American taxpayers.

    Verify
    at: http://premium.cnn.com/TRANSCIPTS/0610/29/ldt.01.HTML

    9.
    $200 Billion dollars a year in suppressed
    American wages are caused by the illegal
    aliens.

    Verify
    at: http://transcripts.cnn.com/TRANSCRI

    13.
    In 2006, illegal aliens sent home
    $45 BILLION in remittances to their
    countries of origin.

    Verify
    at: http://www/.rense.com/general75/niht.htm

    14.
    The Dark Side of Illegal Immigration:
    Nearly One million sex crimes committed
    by Illegal Immigrants In The United States …

    Verify
    at: http: // http://www.drdsk.com/articleshtml

    The total cost is a whopping
    $ 338.3 BILLION DOLLARS
    A YEAR AND IF YOU’RE LIKE ME,
    HAVING TROUBLE UNDERSTANDING
    THIS AMOUNT OF MONEY; IT IS
    $338,300,000,000.00 WHICH
    WOULD BE ENOUGH TO STIMULATE
    THE ECONOMY FOR THE CITIZENS OF
    THIS COUNTRY.

    Are we THAT Stupid?

    YES, FOR LETTING THOSE
    IN THE U.S. CONGRESS
    GET AWAY WITH LETTING
    THIS HAPPEN YEAR AFTER
    YEAR!!!!!

    As a progressive I am proud to say-SEND THE ILLEGAL ALIENS HOME NOW 100% OF THEM AND THEIR ANCHOR BABIES WITH THEM.

    This is not a left right issue but a common sense issue. we do not need more unskilled people in this country we already have enough, dare I say too many Americans fit the unskilled bill.

    I am a left as you can go progressive and I and many others who are also progressives say-send them home now! Corporate death penalty for those who hire illegals.

    • DownWithLibs

      You are actually starting to make sense. Wait, don’t tell me….hell just froze over right? Am I right?

      • gary2

        Just because I am a liberal does not make me one of the crazy let everyone come ti the USA and give amnesty. There are about 20-25% of progressives who feel like I do about sending the illegals home and strengthening the border like it is between north and south Korea. We have a web site explaining progressives against illegal immigration. We have wacko’s on the left as does the right have wacko’s. The difference is that I and others will call out the left wacko’s. I am glad we can agree on something! Merry Christmas and Happy New Year.

  • Tony N

    The Loss of Liberty in America is staggering .
    I would Argue with the Republican establishment about their Worry that NEWT wanting to bring a greater Balance to the Judiciary. This Executive Power is not to be used for more than 2 years yet the Power has been enacted and rolled over for 10 years plus now and this kind of Power abuse is perpetuating on its self and The executive Branch as well as Congress would only stand to Benefit from a destabilizing effect on economic and tactical systems of societies and so we could ask is all that could be done to Bring back Stabilized growth to the Economy of the Free market system when President Obama comes out and says that the Free markets system is a failed system always was and always will be ???? Thats pretty destabilizing in itself is it not ???

    Plus they are doing all kinds of things to destabilize or bring the threat of destabilization to our economy and we need to ask why ? Like this , http://www.cnsnews.com/node/75388 , and when you read this you can make the case that this was the plan all along , Obama’s agenda: Over whelm the system , http://www.snopes.com/politics/soapbox/overwhelm.asp , this story talks about how illegal Immigration if allowed to continue can help collapse and destabilize the USA economic system thats a Threat that can keep in place the National Emergency Act that President Obama and Congress is Hiding behind so they do not have to follow the US Constitution while the system continues to collapse due to a lack of following the rules that up hold the Liberty and Integrity of this USA , http://www.lvrj.com/opinion/obama-s-agenda–overwhelm-the-system-95716764.html

    S&P PLAN to Destroy the US Dollar , BILDERBERG FINANCIERS AT TEL AVIV MONETARY MEETING
    http://tinyurl.com/3nk9uu8
    http://webofdebt.wordpress.com/2011/08/18/sp-and-the-bilderbergers-all-part-of-the-plan/
    WHERE is the OUTRAGE ?

    And enabling Operations in the Middle east like the Muslim brotherhood thats a Well known hater of the Western nations like the USA and Europe to topple the nations and destabilize the region even more than when the War on terror broke out in 2001 , this seems like more ways to keep in place reasons why the Executive Privilege of National emergency act is continuing and allowing even more lose of Liberty to evolve like with the latest enacting of the National Detention Authorization Act , an even more destabilizing effect on the nations ability to build trust between Government and the private sector economy . I mean these things are over reaches that NEWT wanted to debate about ways to Slow down and reverse the Loss of Liberty and so the Republican establishment and anyone who denounced your thinking really needs to Take a Long hard look at what is Going on NOW !!!

    I would Ask them why they are so dang worried about what you wanted to debate when it looks like they did nothing about what President Bush did to GUT the rights of US Citizens under what Was the US Constitution that also allowed President Obama to enjoy a inherited executive privilege of Power to avoid accountability in every way of US Constitutional authority ??
    http://www.whitehouse.gov/the-press-office/2011/09/09/message-president-regarding-continuation-national-emergency-respect-cert
    And he just keeps extending it over and over ,
    Obama Extends Bush’s 9/11 State of Emergency
    http://news.antiwar.com/2010/09/10/obama-announces-state-of-emergency-extension/
    I found this article had a Paragraph that asked a question about Why maybe President Obama was able to skate around the eligibility clause , and how the NDAA bill was able to End Posse Comitias law and overrule the right to the 4th and 5th amendments of the US Constitution . This Might be why they are Not Enforcing the Immigration Law ?? Is this how they are implementing sustainable development taking away rights of private property owners ??? No Need for a balance Budget amendment because with this suspension we can just keep extending it and kicking the can down the road until a full destabilization of the trust and integrity of the trust in liberty to uphold a individuals rights has Broken down to the point of civil outrage and disobedience right ?

    http://www.renewamerica.com/columns/symon/081107 , This paragraph is about half way down in the article .
    ” The US Constitution is clear on the matter of Presidential requirements, but what if the US Constitution has quietly been under suspension since September 2001, through the use of “The National Emergencies Act (50 U.S.C.1601-1651)” which, incidentally, prohibits any President from declaring and prolonging a State of National Emergency for more than a two year period. Yet this “Emergency” nonetheless has lasted continuously since September 11, 2001. Are COG rules in force? and if so why have House Homeland Security Committee Chairman Bennie Thompson and Oversight Subcommittee Chairman Christopher Carney’s request to scrutinize those rules been refused ? ”

    These laws that are being enacted are being done because the US Constitution is suspended otherwise these Laws like this NDAA would not be able to get past under the US Constitution , and Listen to Senator Graham like his Power to Detain …. like a German Shepard …. http://www.youtube.com/watch?v=9ni-nPc6gT4
    And Now we the people Live in Fear if we even Speak out against these oppressive acts against of our Liberty of the right to due process we use to have , even if we are missing fingers , storing food and ammo ,

    ATTENTION PREPPERS – Having More Than 7 Days Of Food Makes You A Suspected Terrorist
    http://www.youtube.com/watch?v=iD1T61oTrR8&feature=player_embedded

    S.B. (SENATE BILL) S.1867 SENATOR RAND PAUL RESPONDS
    http://www.youtube.com/watch?v=dYbZG1guB_g&feature=related

  • Steve Smith

    Gary2-As a native Arizonan, I know what you say is true. In 2004, Illegals cost Arizona $163 million dollars. Arizona recently sold their CAPITAL BUILDING to make up a $100 million deficit! The math speaks for itself. Arizona has a reputation for being racist because of the legal stand they have taken against Illegals. It is not a case of anti- ethnicity or racism, it is a case of NATIONALITY!

    We owe the citizens of Mexico, especially those who come here illegally, nothing!

    By the way, my daughter-in-law and three of my dear grandchildren are Hispanic, and we have all moved to New England.

    • gary2

      The only thing we owe the illegals is a one way ticket back to wherever they came from and a swift kick in the ass for coming here.

  • http://isadepressioncoming.com Is a Depression Coming?

    Great post. It really does seem like most Americans still have no clue as to what is happening and what could potentially happen to them, their friends and family and their savings.

    • bert

      coming?? it’s here and has been for a couple of years.

  • Timo44

    Just remember the reason that we hear and see all these big numbers are mostly to blame on the central banks because our currency continue to devalue and soon it wont matter what programs the government have because all this cheap money will be worthless. I blame the govenment for most of this stuff because they never should have started programs we can’t afford and making these big companies richer off this cheap money. Just remember JP Morgan makes the food stamps for the government and they are making big moeny off all those poor people. Its the buddy buddy system and they don’t care about the working man or poor man or anybody but their friends. Like the banks and big corparations. If it wasn’t for this cheap money thats being made out of thin air GM, GE and other big corpations would be out of business. The Fed loan out 16 trilloin dollars to banks with out the American people even knowing about it. One thing I really hate is poor people blaming poor people put the blame were is should be the govenement and central banks. Its time to make some serious changes.

  • Tatiana Covington

    Suppose that when you try to take the rich guy’s money, he takes your life?

    Then what?

    • tonybinca

      It is going to be the rich guys whose lives are taken, en mass.

    • gary2

      suppose that his life is taken before his money is taken? I do not get the point of your question?

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