The Beginning Of The End
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Are We On The Verge Of A Massive Emerging Markets Currency Collapse?

Currency CollapseThis time, the Federal Reserve has created a truly global problem.  A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets.  But now that the Fed has decided to begin “the taper”, investors see it as a sign to pull the “hot money” out of emerging markets as rapidly as possible.  This is causing currencies to collapse and interest rates to soar all over the planet.  Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far.  In fact, last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008.  And all of this chaos in emerging markets is seriously spooking Wall Street as well.  The Dow has fallen nearly 500 points over the last two trading sessions alone.  If the Federal Reserve opts to taper even more in the coming days, this currency crisis could rapidly turn into a complete and total currency collapse.

A lot of Americans have always assumed that the U.S. dollar would be the first currency to collapse when the next great financial crisis happens.  But actually, right now just the opposite is happening and it is causing chaos all over the planet.

For instance, just check out what is happening in Turkey according to a recent report in the New York Times

Turkey’s currency fell to a record low against the dollar on Friday, a drop that will hit the purchasing power of everyone in the country.

On a street corner in Istanbul, Yilmaz Gok, 51, said, “I’m a retiree making ends meet on a small pension and all I care about is a possible increase in prices.”

“I will need to cut further,” he said. “Maybe I should use my natural gas heater less.”

As inflation escalates and interest rates soar in these countries, ordinary citizens are going to feel the squeeze.  Just having enough money to purchase the basics is going to become more difficult.

And this is not just limited to a few countries.  What we are watching right now is truly a global phenomenon

“You’ve had a massive selloff in these emerging-market currencies,” Nick Xanders, a London-based equity strategist at BTIG Ltd., said by telephone. “Ruble, rupee, real, rand: they’ve all fallen and the main cause has been tapering. A lot of companies that have benefited from emerging-markets growth are now seeing it go the other way.”

So why is this happening?  Well, there are a number of factors involved of course.  However, as with so many of our other problems, the actions of the Federal Reserve are at the very heart of this crisis.  A recent USA Today article described how the Fed helped create this massive bubble in the emerging markets…

Emerging markets are the future growth engine of the global economy and an important source of profits for U.S. companies. These developing economies were both recipients and beneficiaries of massive cash inflows the past few years as investors sought out bigger returns fostered by injections of cheap cash from the Federal Reserve and other central bankers.

But now that the Fed has started to dial back its stimulus, many investors are yanking their cash out of emerging markets and bringing the cash back to more stable markets and economies, such as the U.S., hurting the developing nations in the process, explains Russ Koesterich, chief investment strategist at BlackRock.

“Emerging markets need the hot money but capital is exiting now,” says Koesterich. “What you have is people saying, ‘I don’t want to own emerging markets.'”

What we are potentially facing is the bursting of a financial bubble on a global scale.  Just check out what Egon von Greyerz, the founder of Matterhorn Asset Management in Switzerland, recently had to say…

If you take the Turkish lira, that plunged to new lows this week, and the Russian ruble is at the lowest level in 5 years. In South Africa, the rand is at the weakest since 2008. The currencies are also weak in Brazil and Mexico. But there are many other countries whose situation is extremely dire, like India, Indonesia, Hungary, Poland, the Ukraine, and Venezuela.

I’m mentioning these countries individually just to stress that this situation is extremely serious. It is also on a massive scale. In virtually all of these countries currencies are plunging and so are bonds, which is leading to much higher interest rates. And the cost of credit-default swaps in these countries is surging due to the increased credit risks.

And many smaller nations are being deeply affected already as well.

For example, most Americans cannot even find Liberia on a map, but right now the actions of our Federal Reserve have pushed the currency of that small nation to the verge of collapse

Liberia’s finance minister warned against panic today after being summoned to parliament to explain a crash in the value of Liberia’s currency against the US dollar.

“Let’s be careful about what we say about the economy. Inflation, ladies and gentlemen, is not out of control,” Amara Konneh told lawmakers, while adding that the government was “concerned” about the trend.

Closer to home, the Mexican peso tumbled quite a bit last week and is now beginning to show significant weakness.  If Mexico experiences a currency collapse, that would be a huge blow to the U.S. economy.

Like I said, this is something that is happening on a global scale.

If this continues, we will eventually see looting, violence, blackouts, shortages of basic supplies, and runs on the banks in emerging markets all over the planet just like we are already witnessing in Argentina and Venezuela.

Hopefully something can be done to stop this from happening.  But once a bubble starts to burst, it is really difficult to try to hold it together.

Meanwhile, I find it to be very “interesting” that last week we witnessed the largest withdrawal from JPMorgan’s gold vault ever recorded.

Was someone anticipating something?

Once again, hopefully this crisis will be contained shortly.  But if the Fed announces that it has decided to taper some more, that is going to be a signal to investors that they should race for the exits and the crisis in the emerging markets will get a whole lot worse.

And if you listen carefully, global officials are telling us that is precisely what we should expect.  For example, consider the following statement from the finance minister of Mexico

“We expected this year to be a volatile year for EM as the Fed tapers,” Mexican Finance Minister Luis Videgaray said, adding that volatility “will happen throughout the year as tapering goes on”.

Yes indeed – it is looking like this is going to be a very volatile year.

I hope that you are ready for what is coming next.

Wheelbarrow of Money

  • Rodster

    Michael, China just halted all bank tranfers. S. Korea is holding an emergency meetin on Jan 26th regarding the volatility in the markets. Lloyds shutdown ATM withdrawls today, following HSBC bank run fears.

    • cpgone

      Michael, China just halted all bank tranfers.”
      Source? thanks

      • Tim

        Forbes has an article about it. Just Google “China halts bank cash transfers” and you’ll get plenty of links.

        • brian1248

          You do know that that was a standard holiday shutdown of cash transfers due to the Chinese New Year and not unexpected, right?

      • Rodster

        Yeah sorry, if I post the link you won’t see it until Michael approves. It goes to moderation.

    • Mondobeyondo

      Uh-oh. That’s not good. Not good at all.

    • Rodster

      The story was a hoax and Forbes pulled it.

      • Malcolm Reynolds

        That’s twice in just a few days of fake economic panic stories hitting the airwaves.
        CNN got hacked with “China dumping US Bonds” the other day, which, when true, will destroy the dollar.
        And now this…..
        Hmmmmmm.

        • Malcolm Reynolds

          Things to think about.

          1. China is using it’s wealth to buy massive amounts of gold.

          2. The Fed was recently told to return a very large amount of gold to it’s rightful owners. Which it could not do….

          2. Tapering is withdrawing liquidity (China’s wealth) from emerging markets (China).

          3. Several fake articles on china’s financial difficulties appear.

          So is not the Fed currently warring with China?

          So if the premise of Trade wars lead to currency wars lead to hot wars is correct….

          • Carol Sherman

            People tell me that Chinese individuals are buying homes in California…when the shtf they want someplace to go.

          • Malcolm Reynolds

            Yup. The Chinese have purchased mucho land in the US over the past few years.
            Goody, lets let capital C communists come here in droves too.

          • BLADAYADA

            Curious how many of u making these Chinese running to America comments have actually been to China, seriously know any Chinese ppl or r yr comments based merely on what American media shows u about China? From what i’ve been told about Chinese economy & Chinese frugality & very different take on investing, saving & business, by Americans living in China, it’s us who may need to get some land in China.

          • Malcolm Reynolds

            I’ve been to china. …several times. You wanna keep yammering now?

          • Avril111

            My Uncle Gabriel got a stunning blue Dodge Charger SRT8 from
            only workin part time on a home pc… hop over to here B­u­z­z­3­2­.­ℂ­o­m

  • MeMadMax

    This could be a catalyst for dollar inflation anyways. A collapse in demand/productivity/etc also means a collapse in demand for the dollar which means them dollars will start flying home…

  • Trailer Park Investor

    We were all looking for some major event to signal the start of the collapse. I think that signal has happened and you wont hear ANYTHING about it on CNN they do not what you to know.
    THINGS are about to get very rough, strange and weird here on out.
    Buckle up as this ride is about to get real rough.
    I pray you are right with GOD.
    IF NOT it may be a good time to have a board meeting with him.

  • Mondobeyondo

    Look out when the dollar tumbles.
    “The bigger they are, the harder they fall”

  • erheault

    The good times they are a starting, The ride will be spectular and the landing hard.

    • Mondobeyondo

      This will not be your ordinary carnival ride.

      • garand555

        I don’t know exactly what track this ride will take, but, if you’re not nimble, it might just rip your face off.

  • Mondobeyondo

    I have a pen pal (well, that’s how we started out in 1989…. we’re now email and Skype pals) who lives in Argentina. It’s bad there. She has two jobs to make ends meet. She’s lucky. At least she has a job.

    Yes, we still occasionally write letters to each other. But I don’t know for how much longer, seein the U.S. Postal Service has raised their stamp prices AGAIN!! Ugh.

    • Mondobeyondo

      49 cents a stamp beginning today (1/26/14).
      And that’s the domestic rate. So glad I stocked up on those “forever” stamps.

      • Tim

        I wish I had. :(

      • John Davidson

        stamps are going up 3 cents each tomorrow.

  • K

    Add to this rising food prices, and a high likelihood of further cuts to food stamps. I believe the correct phrase is, And so it begins.

    • Mondobeyondo

      2014. Not the beginning of the end, but the end of the beginning

    • K

      Have to agree with Kim 20% are taking some steps to get ready. Sadly 80% have no idea, or do not want to have any idea. Sorry Kim still am blocked from replying to you directly.

  • Bubba Johnson

    Keep your ammo dry and hand steady

  • Mondobeyondo

    One more time again…
    Here’s that Tsar Bomba* video link:

    http://www.youtube.com/watch?v=WwlNPhn64TA

    This is what happens to your economy (and everything else), when you print too much currency which is backed by nothing, which makes it worthless anyway.
    ————
    * – the most powerful explosive device created by mankind

    • MeMadMax

      I love that vid, thanks =D

    • none

      The good news Mondobeyondo?
      That is only the 50 mega ton bomb.
      The original one was support to be a 100MT
      The scientists where afraid that it might go all the way up to the ozone? And destroy it? So they only made the less powerful version.

      • Mondobeyondo

        You are correct. I heard the reason why they didn’t use the 100MT bomb, was that they were afraid the plane that would have dropped such a powerful bomb, wouldn’t have time to get out of the way before it would have been blown out of the sky.

      • Mondobeyondo

        Here’s the top 10 nuke explosions, if you or anyone else are curious:

        http://www.youtube.com/watch?v=4rElV_w_DPQ

        JFK signed the Nuclear Test Ban treaty in 1963. Let’s pray these weapons are never, ever used again. They were used twice (Hiroshima and Nagasaki)..

  • Mondobeyondo

    People — WAKE UP!!

    Most people are asleep.
    And the people who aren’t asleep, are (literally!) too drunk or too stoned, to even care.

    • http://www.olduvaiblog.wordpress.com/ Steve

      Could you repeat that, man, I went to get some more pizza.

    • Kim

      That’s not necessarily true. It’s not a lot but one out of five people I meet get what’s going on and are preparing.

      • Kim

        Hmmmm. This could get confusing.

  • http://www.olduvaiblog.wordpress.com/ Steve

    Let me add some Canadian content. The Canadian dollar has lost 10% in the past year and almost half of that in the last month relative to the US dollar. Not so bad in comparison to emerging markets but with 90% of our trade with floundering US and European markets, amongst the highest of household debt in the Western world (mostly in government-insured mortgages) and a mostly commodity-based economy, I’m thinking it might get far worse here in the Great White North before it gets better.

    • jonno

      Let me add some Australian content. Things are fantastic here, our dollar may have slipped slightly against the American banana peso but we don’t notice it at all. Life here gets better every day, home values are too high but I’m sure that will adjust in the coming months. Plenty of work at good wages and the best living conditions anywhere in the world. Clean air, water and food. It was Australia day yesterday where we could celebrate living in the greatest country on earth. Sure a few social problems such as drunk and drugged young people going off the edge but nothing like the Depressing States of America where crime and violence are a natural fact of everyday life. And you’re still all welcome to come here and share the good times.

      • MeMadMax

        So Tony Abbot was a good move huh? Glad you guys are doing better. =D

      • Malcolm Reynolds

        “where crime and violence are a natural fact of everyday life”
        Uhh, no.

        • jonno

          Ha Ha. Yes your right, I do get a bit carried away and the statement is of course incorrect. It’s just that I live in such a safe area of the world, when I see even one day’s news from America it seems as if violence is a regular occurrence. I sometimes forget the USA has a population of 320 mill and Australia just 22 mill. There would have to be more happening both good and bad.

      • Anonymous

        Have you seen the immigration forms/booklets for one to immigrate to Australia and New Zealand? I must pat Australia on the back for education though. Australia allows college students to study what the student loves. A Math major only takes Math classes to earn a Math degree in Australia. In the USA Art majors are required to take Math classes to earn an Art degree (makes no sense to me as it discourages some from ever going to college). Also, Australia’s degree cost is about 1/2 of what the USA charges (I have heard of Americans going to Australia just to go to college). Of course the Swiss have very nice education fees. I applaud Australia for not adopting the Prussian school system as the USA did. If immigration was as easy there as it is in the USA, there would probably be a lot of Americans there. Does Australia offer job training? What does Australia do with her homeless people? Do people live on the streets and get harassed for being poor like they do in the USA?

        • k

          College education is a huge business in the states…and in many countries. Thats why they make students take extra majors too, so that they can milk more money of them.

        • jonno

          Dear Anon,
          People only live on the streets if they want to. There is so much help available from social security payments, payments for children, plenty of Goodwill type places that will give you a full house of furniture if your desperate. There are many free food outlets. And Aussies are very generous, that is except for the wealthy who are stingy to the extreme. If you are unemployed the job agencies will help you find a job and supply training and tools and workwear if you need it. Of course some people abuse the system and spend their time surfing or just being useless. There is so much opportunity here, if you want to work you will find a job. As I’ve said here before, waiters get $20 per hour + tips+ superanuation+ penalty rates. Nothings perfect but this places is better than everywhere else, maybe with the exception of Scandinavia who really look after their people. Oh, and free medical for all and dental for the kids at school.

  • Mondobeyondo

    “Negative Creep” is much more than just the title of a Nirvana song. It defines an entire nation.

    It’s affecting our entire society. Look at how many people are depressed out there. How many drunks, and people hopped up on drugs. It is sad.

  • davidmpark

    My daughter asked me why currencies are collapsing (she reads over my shoulder). I told her that they were artificially inflated in value by US dollar inflation. I explained how some folks are getting rich on money that doesn’t exist, and buying things with practically nothing. She then asked me something interesting: “Dad, if the money isn’t real and everything collapses; what makes these rich people think they’ll have anything? No one would accept their money as money.”

    THAT is very profound. The so-called 1% can’t own the world by that logic. If they “owned” raw materials, how would they hold onto it legally? No legitimate government to recognize it. They can’t keep it, outside of having a private military; and how can they have a private military without a private workforce much greater to support it? Keeping a military is not cheap – even if they had to resort to flintlocks and bayonets. Takes at least a year to make gunpowder from scratch. No way the wealthy can support a large military over 200 soldiers without the economy and support staff behind it. And who’s to say we’d accept their gold and silver? Where’s the industry that uses gold and silver to make it worth something?

    How wise the mind of a child is!

    • Mondobeyondo

      That’s awesome! Thanks for sharing!

      • davidmpark

        Thanks! My 11-year-old really said that. It’s really spectacular how wisdom manifests itself at such young ages.

        • k

          walnuts are considered one of the top brain foods.

        • none

          There is some good news that you can share with her.
          President Obama has returned from his Hawaiian vacation..
          Usually whenever anything goes to “heck”. The president goes somewhere, or just goes to bed.

    • Jodi

      Great post!

      • davidmpark

        Thanks!

    • Whiplash

      [quote]
      “”Dad, if the money isn’t real and everything collapses; what makes these
      rich people think they’ll have anything? No one would accept their
      money as money.”[unquote]

      The Great Depression still happened this way didn’t it?

      • davidmpark

        Close to that, yeah. The great depression still had manufacturing, farming, and mining, but it was in steady decline due to anti-production/pro-protection policies.

        One excellent example is the cotton and pigs fiasco: the FDR administration, with the USDA, ordered the destruction of millions of pounds of cotton and tens of thousands of pigs to artificially inflate prices via low supply. This practice is still in place today.

        • k

          Have you been feeding her walnuts? :)

          • davidmpark

            Hazels, actually.

      • Mondobeyondo

        We still did have “real” money in the Depression days. Yep, FDR confiscated the public gold supply in 1933 (turn in your gold to the bank, or face imprisonment), but we didn’t fully go off the gold standard until August 15, 1971. Since then, the dollar has been a fiat currency backed by nothing.

    • Drud

      The problem, still, is that she (and you) is separating the 1% from the government. This is simply not the case. The 1% owns and operates the government. Now, I still think this entity (the state, the fascist conglomerate that includes both government (elected officials) and corporate interests (un-elected overlords)) will collapse, simply because it produces nothing but waste and has only one trick to use against the people: fear. The key thing to understand is that the state needs us, we do not need the state. Governments derive their powers from the “consent of the governed…” Thomas Jefferson was not speaking of an ideal government or a perfect world, he was stating a FACT. No government (or state), anywhere, ever has existed or will ever exist without the consent of the masses. The people have the power, now as always, we need only to realize it en masse.

    • Anon

      You should be proud that your daughter is that perceptive but I would have tried to explain to her that the value of money is relative. When I graduated from high school in the early 70’s I landed a job making $5.57/hr and continued going to school part time. I thought I was rich. When I retired more than 30 years later I was making more than $24/hr, an increase of more than 400%. There was no discernible change in my lifestyle or what I could afford.. The only reason I was able to retire when many of my co workers couldn’t was because when overtime was available in my last few years I worked it and used it to pay of every debt I owed. I still by choice work a part time job just for extra money but now when I’m fishing in the morning I think a lot about the whole rat race.. There is an old economic adage that you wpn’t make more money by charging $5 for a candy bar because you won’t sell any. That’s why I believe any future hyperinflation will peter out quickly. With 100,000,000 Americans now not “participating” in the work force what difference does it make what a company charges. I believe we are going to see bare shelves. In the old Soviet Union it didn’t matter what the latest 5 year plan determined your pay should be when there was very little to buy. The elite hoarded all the best products while the ordinary person who scrimped and saved might eventually be able to buy a used car on the black market with a two cycle engine. People say ” if no one can afford to buy a product how will the companies survive?”. Do they really care? If you owned a car company would you care if you took in your 10 billion dollars in revenue by selling one million cars at $10,000 /car or by selling 10,000 cars for one million per car?. Do Rolls Royce or Maserati or Lear Jet care if you or I can afford their product? If your eating steak today with the same income tomorrow you may be eating ham hocks and there just won’t be any steak on the shelf for most of us since we can’t afford it anyway. My former co workers often thought with great anticipation how much money they will have when they’re 75 or 80 years old laying in a nursing home getting their diaper changed. I started thinking instead about how much money I would need. At 80 a fishing pole and a dozen worms don’t cost that much and I already have the pole. Taking my girlfriend out to dinner once or twice a week is affordable and we decided instead to enroll in a foreign language class at the local community college and are now conversant in Spanish, a useful skill. At the risk of sounding corny I would tell your daughter that knowledge weighs nothing and is more useful than gold..

      • Mondobeyondo

        It IS relative, and it’s because inflation has steady eroded the dollar’s value. Say you have a cup of coffee. You add water to it. Then add more water to it. Keep doing this, and soon you’ll want to just pour that cup of coffee down the drain. That’s what’s happening, in a sense, to the dollar.

        • Anon

          Have you checked the price of coffee lately I bet it’s up 80% in the last 3 years.. We may have no choice but to add more water. Just for the hell of it the other day I used only half a scoop over the used grounds from the previous pot. It worked!

          • Carol Sherman

            I thought about using vacuum packed coffee as currency in hyperinflation, but bummer it only keeps a year…coffee is valuable in inflation situations.

          • kil456

            Carol.. Check into unroasted green coffee beans sealed in mylar bags and oxygen eliminators. bob

        • davidmpark

          Nice metaphor!

      • davidmpark

        Good stuff, mate!

    • evader2014

      They’ve got the gold and they’ve got weapons. They’ll have to be rooted out of their bunkers and exterminated.

      • davidmpark

        Um… let’s not murder. That’s what they do – we’re better than that. And those weapons are only so good as the mechanics, gunsmiths, chemists, machinists, specialist soldiers, etc.

        Their gold will only go so far. What will happen when it runs low? And what happens when their gold is no longer good outside of those bunkers? What will all the support staff do to support themselves? They’ll abandon those rich folks when it’s no longer profitable. Just like King Midas, they’ll starve, surrounded by riches.

        And remember: bunker = mausoleum. They’ll go crazy being locked inside, hiding from the world their hands helped mold.

    • Priszilla

      That’s why they buy your unwanted gold at any price.

      And when the balloon grows they tell you to give them your money (buy shares), so they can use the money to inflate the gold prices further.

      Or housing. Real houses, with foundation, basement, bricks, the land it stands on.

      If you have enough gold, and a press, you can make your own gold coins. And use them to pay the military. You can also house the military and their families in your real estate.

      One way to survive is to get out of financial markets, reduce your debts, optimise your consumption to a sustainable level.

      If your demand shrinks, you become much less of a threat.

      • jim

        Get prepared!

    • Sandbagger

      My seven year old son has been schooled in the meaning of inflation using this site. He asks questions like your DD.
      Perhaps
      that’s an indication the children will be able to rise out of the ashes
      of the collapse and renew economies as they should be.

      • davidmpark

        That is our goal as parents. That’s why our preparedness plan includes technical books and tools. We will go through the collapse, but the children will have the ability to process what’s here to rebuild and improve themselves. Thanks, man!

    • Dude

      In the short run they plan to buy homes in New Zealand and take their assets over there. But in the long run, you’re right, if they’re not part of the Illuminati they’ll be devoured by the swarm.

    • Funtimesahead

      “Dad, if the money isn’t real and everything collapses; what makes these rich people think they’ll have anything? No one would accept their money as money.”

      Smart girl. And that’s why this will happen. No one really learns from past mistakes until they are forced to be humble. The only way to teach a rich person — and really everyone — humility is by remove their sense of security by removing their wealth.

  • Mondobeyondo

    Q and A with Mondo!
    ——————————-
    Q, Hey Mondo, are you depressed?
    A. Yes, I am.

    Q. Is there any way out of this predicament?
    A. Short term, no. Long term, no.

    Q. You sound so negative! Why don’t you tell us the truth?
    A. I am telling you the truth. Why do you think I’m so depressed?!?

    • K

      Mondo my friend, make sure you never have that conversation for real. In some areas mention you are depressed, they come for your firearms.

  • Mondobeyondo

    The most awful thing is to be caught in an economic death spiral.

    “But we can break out of it” you say..
    No you can’t.

    When you’re caught in a death spiral, you’re pretty much doomed.
    Is America in a death spiral?
    Not yet. But we’re getting there, and fast.

  • Bernard Ho

    It is all twisted rumors. I am in China now and the PBOC hasn’t halted any transfers of funds. Jan 31-Feb 6 are official public holidays and commercial banks do take the opportunity to do maintenance services; after-all the domestic funds transfers will also be very low.

  • John

    Forbes: There will be a 3 day suspension of domestic renminbi transfers. There is also a suspension, spanning 9 calendar days, of conversions of renminbi to foreign currency. Running on empty?
    Peso tumbles, more small “d” voters who have “earned” citizenship, according to the new NSA guy. No amnesty, please, just another “crises” that “O” can’t manage well with our republic in mind.
    Monday and Tuesday the stock market will once again take a hit and on Tuesday, the leader of …well, whatever he’s the leader of will, talk about whatever he talks about. This is not going to end well for our children and grandchildren.
    My wife won’t let me watch the State of Confusion speech, it is what is best for a happy home. Besides, I spend 1.5 hrs. in the a.m. reading making my own decisions on issues. Michael, you are always on my reading list.

  • George Ferenzi

    The collapse in emerging markets is beyond anything the Fed
    can do to stop it.

    • Malcolm Reynolds

      Read the story again. The collapse in emerging markets is being caused by the Fed.

  • Nicnak

    Time for you to invest in Swiss or Norway banks and Relinquish your USA citizenship and become a true Swiss or Norwegian . Get rid of irs mafia…

    Fatca coming in July 2014 to kick your butt.

    • Anonymous

      Some other countries have very strict immigration laws that they actually adhere to. I have seen some immigration forms from other countries that ask for a complete medical history, and the “form” looks like a booklet. Some Americans might be disqualified from immigrating if they are older or have health issues. Others may value privacy and not want to disclose every private matter to a government. Besides, this is the New WORLD Order plan, so it will be worldwide.

  • chilller

    Whenever things look as they do now…the Fred steps up and injects more drug money. They will soon come out with some excuse to stop their withdrawal symptoms and inject even MORE drug money than ever into the worlds collapsing veins…

  • SMASH THE CONTROL MACHINE

    STARTING TO SEE INFLATION HERE IN KANSAS !!!PROPANE WENT FROM 1.84 TO 4.25 A GALLON!!HAMBURGER WENT FROM 2.14 A POUND TO 3.33!!ALL IN ONE WEEK!!!!

    • 68Impala

      $4.89lb for chopped meat here on Long island. Costco still under $4 at 3.99.

  • T

    This is a classic swindle. Flood their economies with our currency, withdraw the hot money fast. watch inflation soar, and wait for them to ask for more hot money to slow inflationary rise thereby solidifying your reserve status

    • k

      Good to know.

  • pavan

    I expect deflation for most goods in the US over the next few years. Inflation will follow. Deflation happens when there are too many goods and not enough buyers. Why are JC Penney, Sears, Target and others closing so many stores? Because not enough people are buying. They will have to lower prices.

  • Nicnak

    I regret to inform you that you can not even leave the USA anymore. You are now bonded to the irs and federal bank for the rest of your life. Even your kids won’t be able to escape anymore.

    You will all sink with the boat….

    Whatever you do, if you were born in the usa, u need to report your tax file to the irs, even dead….

    • Colin

      The reason that many people can’t leave a country is that other countries have strict requirements for who immigrants. And, unlike a hundred years, where the lives of indivudals weren’t as recorded and tracked ,as today, they were able to move elsewhere. If you got into trouble where you lived or found conditions intolerable, you could uproot yourself and your family and move elsewhere. Anonymity was more widespread. You can’t do that today.

      • Anonymous

        Excellent points.

    • Wally

      100% Agree. In addition you will not be able to withdraw your own money except in small amounts. Get ready for some very scary times. Agenda 21 is coming to a city near you.

  • Kim

    The FED: bunch of f’idiots. They get what they deserve. As for the rest of us, we’ve known for a long time this was coming. Stay safe everyone. Keep a sound mind and get ready. It’s coming.

  • Wally

    What are you paying for items today:

    Ground Beef – I used to get for $1.99 a pound just a couple years ago. I Bought a pound yesterday for $5.49 that is more than a 100% increase.

    TP – If I looked around I could get 12 Double Rolls for $5 or $6 on sale yesterday the cheapest I could find was $8.99.

    Nuts – Mixed Nuts in bulk. No fancy packaging like Planters just a bag. I used to get for $3.99-4.99 a Pound. Yesterday $7.99 a pound. I skipped on buying.

    Fish, Fruit, etc. Have all gone up locally where I am at.

    I have a feeling things are going to get a lot worse. Three items at the store yesterday and I paid $19.87. Ground Beef, TP and Large can of Tuna Fish. This I believe is just the tip of the tip of the iceberg.

    • 68Impala

      All prices are rising notice how many items say “NEW LOOK – SAME QUALITY” which is just saying your tuna is in smaller cans as are soup/vegtables etc. . OJ is no longer 64 oz but 58oz. cookies come in 12 or 13 oz bags instead of 16 oz. etc etc. Home heating fuel here on long island is up over $4.20 a gallon. Yes its the tip of the iceberg I feel we are all on the Titanic.

  • FirstGarden

    As independent economist Raveendra Nath “Ravi” Batra pointed out long ago, there was great disparity of wealth during the years leading up to the Great depression. Hmmm…

  • Mohsen Samii

    What a turn around, the US FED is warning all those “emerging markets ” that the guy with a central bank can do what ever it takes Evan ruin others when ever it is threatened . You see the Americans have two main scared policies, one is to have a safe distance in ALL spheres of influence between them and the rest of the world and when this position is threatened and the gap closes, then they have no choice but to push the rest down hence maintaining their safe distance. For how long this game will go on is anyone’s guess though as we see a political solution will not change the status quot but war might.

  • Drud

    The odd thing is that this may temporarily strengthen the dollar. As smaller currencies lose value, more and more money will flow into the “safe haven” that is the dollar. Of course, the dollar is at least as fundamentally unsound as any currency, it could spell a temporary boon for the dollar and a “win” for the current administration and for the Fed. That makes me want to throw up in my mouth a little.

    • Bill

      Exactly, the cabal is not stupid. They are masters of destruction by design. The only hope is for the surfs to do something about it. It’s a few million surfs against a few thousand cabal. Until the surfs grow a pair nothing will change. There is no rage. It has been bought off by government handouts.

      • Bill

        Confirmation just discovered at the common sense show for Jan 25. If you don’t believe me perhaps you will believe their article on why America can’t be saved.

  • David Hammond

    When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine” (Revelation 6:5-6).

    It cannot be escaped nor avoided, no matter what type of schemes the central banks create, eventually the house of cards will fall. Right now, we are like a cancerous patient, and the chemo and radiation treatments are futile, but yet the treatments continue on because in the minds of the family, there is a hope…a false hope…even those doing the administation know death is imminent.

    • Carol Sherman

      Revelation comes off as the writing of someone on some heavy meds. Why can’t God write things more clearly?

      • Alasha

        I used to think the same thing… From what I gathering from my study of the scriptures
        .. Everyone will not get understanding .. We need this spirit and help. We have to put forth effort “seek for it like gold”. Pray Carol. Jehovah will help you. He promises to.

  • tuna fish

    gary, gary, gary

  • Bill

    Miss you tonight Mondo

  • wraith67

    But it’s so slow. I can’t even warn friends and family because of how long this is taking. The indicators are what they are, and the signs are what they are…but it turns into the ‘boy who cried wolf’…

  • Thingsthatmakeyagohm

    I don’t see them tapering again for quite some time to come. I believe they will kick the taper can down the road

  • JahRW

    “There’s a storm coming, Mr. Wayne. You and your friends better batten down the hatches, because when it hits, you’re all gonna wonder how you ever thought you could live so large and leave so little for the rest of us.”

    Selina Kyle, The Dark Knight Rises

    • Alasha

      loved that movie..lol

  • Rogoraeck

    You stupid peones! You have to do with much, much less, so that the Chosen by Satan can have more & more!

  • Priszilla

    Need to check your savings, your consumption and investment.
    Note: participating in the financial market is not investrment, but gambling (consumption).

    Investment is to spend some money today to save consumption costs in the future.

    So, plant a tree today and harvest apples in 5 years.

  • Hammerstrike

    The chaos in the emerging marklets have been caused ptl by the inflation of the international trade currency, the federal reserve caused that.

  • Carol Sherman

    Except that so many Russians love living here.

  • Bill

    Market up 70 this morning due to increase in consumer confidence says cnbc. What a bunch of bull. Does anyone believe this propaganda?

    • Kochvilledi

      At our house, nope!

  • Nicnak

    Time to sell the white house on eBay?

  • DJohn1

    I am sitting here in my house and outside we are experiencing about -10 degrees. Lord only knows how high the heat bill will be this year.
    We are retired and survive on our Social Security Checks and pensions.
    Years ago I was in South Korea about 4 years after the currency collapsed in service to the US Air Force as an enlisted man.
    My first action was to learn as much of the language as I could in a short period of time. I was not entirely successful. But I was able to become friends with a lot of people that survived and prospered during the currency collapse. They were all very wise people working in jobs for the U.S. Air Force. That was where the real money at the time was. These gentlemen were smart. Very smart, often with fluency in 5 or more foreign languages. Some had masters degrees in school.
    They often looked like simply old people doing low qualified jobs.
    What South Korea had to do was cut their currency to 10 cents on the dollar. That meant that a dollar in their currency became 10 cents. The lowest value of a cent became worthless. I use our currency as an example so you can realise what that meant.
    Ours is a valid metal currency and it costs a lot more to make a cent than what it is worth on the open market. Theirs was paper.
    What happened? The wise gentlemennbought and held warehouses full of goods and waited it out. Their goods often experienced inflation of more than 1000 per cent after the currency actually collapsed. All of these men were wealthy by our standards. They worked for me through the Air Force.
    I never bought warehouses. If I had I would be wealthy beyond my wildest dreams between Nixon taking us off the gold standard and today.
    I was never taught to run a business. I wish I had been. That is a profession well worth knowing.
    This year the government decided I needed a raise. They gave me $6 a week. What a joke!
    One of the reasons that the U.S. Government is engineering a depression is that they have not given the pensioners a raise in about 6 years. So gradually all the old people are going broke on their pensions.
    We produce nothing. We are the victims of a Ponzi scheme. It really is our own fault for not planning our own old age better.
    This is all planned. It is planned and the government is stockpiling and arming their bureaucrats. Because when the S**T Hits the Fan they know where it will go from there.
    The real rich people have isolated islands in reasonable locations like islands off Hawaii. They are easily defended. They have food, clothing, housing, and people to maintain these places. I suggest boats and cars are also readily available to them.
    They even have small hospitals available with a crew of medical people if needed.
    These people like my Korean friends have prepared for the winter financial situation we are just seeing the beginning of. When the true winter season of finance begins, these people will go to their little islands and live comfortably while the world rides it out.
    Most of these people have these little sanctuaries far from the beaten path of war. They are not like us. They have prepared and have the wealth to do so.
    My own employer was such a family. Most lived in around Atlanta, GA. But one sister had a ranch somewhere in the vicinity of Hawaii.
    Age is the great equalizer. All of these people reproduce the same we do. And my employers must be over 100 if they are still alive. They were really small potatoes compared with the Rockefellers, Morgans, Carnegies, Gates, and others. My employer had about 13 billion dollars. Might be closer to 20 by now. They had a cousin running things the last time I checked.
    They always treated us well. I liked the family. The family always treated us right.
    They never had stock available in their company. I would have bought every stock I could with my wages if they had. They really did know how to run a business. It would have made me wealthy.
    They owned close to 50 communication related businesses and an Auto Auction place.
    I was low in their scheme of things. But as a composing room printer I was treated well over the years and had a reasonably decent income.
    If they would have me, I would have worked for them any time, any where.
    If it is possible, I recommend that if you can become one of their servants, your life will be good. That is one of the lessons the South Korean gentlemen taught me.

    • Optimistic pessimist

      Thank you so much for sharing – extremely valuable lessons that are of great use – learning how to generate your own income will be how the smart people get through the next few years.

  • ian

    is this talk of collapse only going to stop once we elect a reupblican? for the love of god!! let’s elect a republican so everything will be rosy again and this incessant propaganda will end.

  • el guapo

    Excuse me, but don’t we want the Fed to taper? Haven’t we all been practically screaming for it? Imagine what would be happening if Ron Paul- who most of us (including me) wanted to vote for- had gotten in. This is just gonna happen, no way around it.

    • Perplexed

      Of course we want the fed to taper. Heck we didn’t want them to monetize our debt in the first place.

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