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The Velocity Of Money In The U.S. Falls To An All-Time Record Low

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Velocity Of Money M2When an economy is healthy, there is lots of buying and selling and money tends to move around quite rapidly.  Unfortunately, the U.S. economy is the exact opposite of that right now.  In fact, as I will document below, the velocity of M2 has fallen to an all-time record low.  This is a very powerful indicator that we have entered a deflationary era, and the Federal Reserve has been attempting to combat this by absolutely flooding the financial system with more money.  This has created some absolutely massive financial bubbles, but it has not fixed what is fundamentally wrong with our economy.  On a very basic level, the amount of economic activity that we are witnessing is not anywhere near where it should be and the flow of money through our economy is very stagnant.  They can try to mask our problems with happy talk for as long as they want, but in the end it will be clearly evident that none of the long-term trends that are destroying our economy have been addressed.

Discussions about the money supply can get very complicated, and that can cause people to tune out, but it doesn’t have to be that way.

To put it very basically, when there is lots of economic activity, there is lots of money changing hands.

When there is not very much economic activity, the pace at which money circulates through our system slows down.

That is why what is happening in the U.S. right now is so troubling.

First, let’s look at M1, which is a fairly narrow definition of the money supply.  The following is how Investopedia defines M1…

A measure of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts and Negotiable Order of Withdrawal (NOW) accounts. M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency. It does not contain “near money” or “near, near money” as M2 and M3 do.

As you can see from the chart posted below, the velocity of M1 normally declines during a recession.  Just look at the shaded areas in the chart.  But a funny thing has happened since the end of the last recession.  The velocity of M1 has just kept falling and it is now at a nearly 20 year low…

Velocity Of Money M1

Next, let’s take a look at M2.  It includes more things in the money supply.  The following is how Investopedia defines M2…

A measure of money supply that includes cash and checking deposits (M1) as well as near money. “Near money” in M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange mediums but can be quickly converted into cash or checking deposits.

In the chart posted below, we can once again see that the velocity of M2 normally slows down during a recession.  And we can also see that the velocity of M2 has continued to slow down in the “post-recession era” and has now dropped to the lowest level ever recorded

Velocity Of Money M2

This is a highly deflationary chart.

It clearly indicates that economic activity in the U.S. has been steadily slowing down.

And if we are honest, we have to admit that we are seeing signs of this all around us.  Major retailers are closing down stores at the fastest pace since the collapse of Lehman Brothers, consumer confidence is down, trading revenues at the big Wall Street banks are way down, and the steady decline in home sales is more than just a little bit alarming.

In addition, the employment situation in this country is much less promising than we have been led to believe.  According to a report put out by the Republicans on the Senate Budget Committee, an all-time record one out of every eight men in their prime working years are not in the labor force

“There are currently 61.1 million American men in their prime working years, age 25–54. A staggering 1 in 8 such men are not in the labor force at all, meaning they are neither working nor looking for work. This is an all-time high dating back to when records were first kept in 1955. An additional 2.9 million men are in the labor force but not employed (i.e., they would work if they could find a job). A total of 10.2 million individuals in this cohort, therefore, are not holding jobs in the U.S. economy today. There are also nearly 3 million more men in this age group not working today than there were before the recession began.”

Never before has such a high percentage of men in their prime years been so idle.

But since they are not counted as part of “the labor force”, the government bureaucrats can keep the “unemployment rate” looking nice and pretty.

Of course if we were actually using honest numbers, the unemployment rate would be in the double digits, our economy would be considered to have been in a recession since about 2005, and everyone would be crying out for an end to “the depression”.

And now we are rapidly approaching another downturn.  In my recent articles entitled “Has The Next Recession Already Begun For America’s Middle Class?” and “27 Huge Red Flags For The U.S. Economy“, I detailed much of the evidence for why this is true.

And those that run the Federal Reserve know all of this.

That is one of the reasons for all of the “quantitative easing” that they have been doing.  The folks at the Fed know that the U.S. economy would probably drift into a deflationary depression if they just sat back and did nothing.  So they flooded the system with money in a desperate attempt to revive economic activity.  But instead, most of the new money just ended up in the pockets of the very wealthy and further increased the divide between those at the top and those at the bottom in this country.

And now Fed officials are slowly scaling back quantitative easing because they apparently believe that the economy is getting “back to normal”.

We shall see.

Many are not quite so optimistic.

For example, the chief market analyst at the Lindsey Group, Peter Boockvar, believes that the S&P 500 could plummet 15 to 20 percent when quantitative easing finally ends.

Others believe that it will be much worse than that.

Since 2008, the size of the Fed balance sheet has grown from less than a trillion dollars to more than four trillion dollars.  This unprecedented intervention was able to successfully delay the coming deflationary depression, but it has also made our long-term problems far worse.

So when the inevitable crash does arrive, it will be much, much worse than it could have been.

Sadly, most Americans do not understand these things.  Most Americans simply trust that our “leaders” know what they are doing.  And so in the end, most Americans will be completely blindsided by what is coming.

  • sdfjLIBSSUCK3ru2

    hey gary, break out the kyj

  • Rodster

    Well the Fed essentially paid Banks not to loan out money. Banks NOW have a higher requirement to lend out money so that is part of the problem which doesn’t circulate to the consumer.

    But don’t worry Federal Reserve because all those cashed out Treasuries from Russia and China are coming back to the US. Yikes, what a mess.

  • JailBanksters

    The US has been Pumped, now it’s time to be Dumped.
    Ouch Baby, very Ouch

  • Guest

    “Since 2008, the size of the Fed balance sheet has grown from less than a trillion dollars to more than four trillion dollars.”

    We hear the MSM talk about the Federal Reserve’s “Exit Plan” or its plans to “unwind” its balance sheet. That is utter nonsense. Who or what is going to buy all the Treasury bonds the Fed has monetized over the past 6 years, let alone the nearly worthless mortgage-back securities the Fed has bought? Maybe they’ll just print more dollars, give them to some foreign nation and have that foreign nation take those Treasuries off the Fed’s balance sheet? At this point nothing would surprise me.

    • Bob Porter

      Like Belgium?

  • quercus454

    Simply put you can’t have any kind of a healthy stable economy with massive unemployment. People need to work and be able to support themselves. If that happens everything else sorts itself out.

    • FDominicus

      Won’t happen. It’s way to fine for the bureaucrats to hinder someone going for work. Because it’s their job that would be in danger

  • tacoma

    Can a country of 330 million people, whose economy is 70% service-based, and 80% consumer-consumption based, create or sustain a first-world standard of living?

    No. Hell NO!

    • Mondobeyondo

      It won’t last.
      It’s a wonder it’s even happening to begin with.

    • Demonocracy

      My question would be, where the heck are all of these so-called service jobs? How did offshoring jobs create them? I don’t recall when NAFTA and other free trade treaties where being negotiated that it was mentioned at all by these planners, “Well since we’re taking this many jobs out of America, we have this plan ? to replace them with service jobs, so that way there is not a resultant shortage.”

      Does anyone recall such a plan implemented?

      • T C

        Ross Perot gave warnings and even had flip charts showing exactly what would happen. Of course, everyone laughed and thought he was crazy.

    • Semiore Butts

      Have you noticed our rotting,pot hole infested roadways in the US? The interstate was once a national treasure.

      • Houtex77

        I remember when I-10 opened in my old neck of the woods, Lake Charles, Louisiana. It was impressive. I have to give the highway department credit because much of it has been widened between Houston and L.C. recently. Bridges have even been repaired.

      • John

        Infrastructure and other domestic needs have been neglected, while trillions have been spent on wars and defending an empire that has become increasingly expensive to defend. The USA needs to re-focus on what it made it a world power in the first place.

        • Priszilla

          There’s more profit in selling ammo and bombs to the taxpayer.

          Just tell them there is a bogeyman, toothfairy, communist around the corner, and they will sell their last shirt to fill the pockets of the Industrial Military Complex..

      • Gay Veteran

        indeed, too bad we spent $TRILLIONS in Iraq

      • Hammerstrike

        At least it will make the governement control over a whole continent much more difficult.

        When all the roads, railways and bridges to Washington are shia, going to be hard for Homeland Security and the IRS to properly loot the populations.

        Oh yeah, Homeland Security SWAT teams have hugh, heavy armored vehicules that are able to withstand mines but are not at all that great at crossing a river or dealing with thousands and thousands of pot holes.

  • Mondobeyondo

    This…. this is Scary.

    • Hammerstrike

      This loss of velocity is happening in spite of all the billions being printed every single day by the federal reserve to its network of cronies.

  • Mondobeyondo

    Is deflation good?


    No. The overall answer, is no.
    Sure, prices for goods and services and stuff will be cheaper. What about the overall cost?
    Don’t forget, deflation affects all aspects of the economy. Which means that the price of pork bellies on the Chicago Mercantile Exchange (oh, my poor aching pork belly) will affect the price of bacon at your supermarket.

    • steve

      Yes I do have it. $15k in small bills on my property plus 6 mo. of food. Got to plan for deflation and inflation.

      • Rick Green

        After the SHTF don’t come to me with FRNs looking to buy anything. Plus, most modern change will be accepted at intrinsic value. You’d be better of with $15k in nickels.

  • death

    The thorn in the rose that is QE…Diminishing Returns. The Fed has set us up Weimar Republic style, preparing to either raise interest rates or go negative with them (in-your-face confiscation of your bank account). Why do you think they’re holding all these meetings? They have to accelerate plans on all fronts; people are waking up too quickly. Prepare for all that Michael warns of…only worse, sooner, and faster than we can imagine.

    • Hammerstrike

      The Weimar republic at least had people who were able to fix the financial system, even if only temporary, like Gustav Stressman.

      No Gustav or Hjalmar Schacht, only Janet Yellen.

  • Mondobeyondo

    In an irrational society, the statistics mentioned in the above article would be best described as “rational”.


    Best thing to do…. ummm…some V-8 juice?

  • Dawes

    I sometimes wonder how much economic activity goes on “under the table.” If workers are doing cash only jobs without tax withholding or reporting, then does that sort of thing get measured by these M1 and M2 reports?
    Whenever an economy is over-regulated then the activity tends to go underground. I think that we’ll see this happen more and more in the US as time goes by. It might actually be a good thing, except for the fact that it’s illegal…

    • K2

      Good point about the under the table economy.

      But even in lightly regulated countries, it happens a lot. For eg: Developing countries.

      • K2

        Infact it is even bigger in those countries.

  • JulietteofOhio

    My husband and I are expecting the economy to collapse, in the true meaning of the word “collapse”, and I just wish it would hurry up and get it over with. We’re getting older by the second and I’d rather deal with this while we still have jobs, some energy, fairly good health and aren’t so old that the government will try to kill us to get us out of the way. I don’t know how long social security or pensions will be available, so we can’t count on them. Yes, I do think the government will take everything left in bank accounts so I want to have the house paid for (then see what taxes do to us) and supplies stored. Old age is going to be a bitch, but so is every age. What a crying shame the U.S. has come to this end!

    • K2

      You’d deal with this, but waht about otehr people?

      • JulietteofOhio

        Well, first I’d learn to type. Nobody is going to take care of you which is the point. If you’re not married, find a good group of friends and lean on each other. We’re entering a hostile world and we have no guarantees. Neither will you. Do the best you can to prepare for collapse, work with other people and plan to make it through. Collapse doesn’t last forever, either, and if you come out on the other side alive and healthy, you’re going to be better off than most. It will be a different world, so you need to learn how to do some useful things. Think 1870s-80s pioneers and learn how to do what they did. That’s what I do and that’s how we prepare. You sound young and if you’re spending your days texting, listening to music and just hanging out with friends, your chances are very low. Take these friends out camping, without any technology, and see what you need to learn and what you need to get. Go from there. Good luck.

        • Mondobeyondo

          Learning to type is almost essential in today’s society. And I’m not saying that because I was a former typesetter (ahem).

          We are entering a brave, um, strange new world. A world addicted to technology of every kind. Nearly all of it runs on electricity. The only thing a terrorist has to do is attack and disable the electrical grid, and this country will be brought to its knees. I’m not saying something they don’t already know.

          • JulietteofOhio

            I agree. I read (somewhere) that if the U.S. suffered an EMP, that up to 90 million people would die which I found incredible at first. ??? How? Food poisoning? Heat stroke? Hypothermia? Teens offing themselves because they couldn’t text, or what? I’m sure that sitting under a shade tree in summer and reading a book could become tedious, but I doubt it would kill us. There are definite benefits to being born in the late 1940s.

          • TheRequimen

            Depends on the scale of the EMP. It really won’t matter if truck’s and trains make it. Anyway, no electricity means no refrigeration, no communication ( ham radios and satellite phones might work, but they won’t do anyone but the military and government much good) and no running water. 90 million dead is really conservative. Try 1 in 10 surviving a year, unless your in the farm belt. Our whole economy runs on last minute deliveries, so expect mass starvation, anarchy, and epidemics within the first month. How much food is in your pantry? How much is in your refrigerator? How long would Walmart shelves last your city? Think about how much would rot. How far is your nearest source of fresh water? Do you have the firewood to boil it? How much wood would it take for a city? Lots of interesting questions, and it only takes 5 nukes, and the missiles to carry them to wipe out us and all of our major allies… North Korea, Iran, and Pakistan don’t seem so insignificant anymore….

          • JulietteofOhio

            Have to admit I hadn’t factored in the nuke plants. Ohio’s plant in the northwest part of the state already glows in the dark. We live in the farm belt, have our own hand-pumped well and raise most of our own food. On purpose, but also because that’s the way we were raised. SE Okla-homa didn’t have electricity until I was ten and my spouse was fourteen and our families weren’t poor. It’s just the way it was. It wasn’t fun, it wasn’t pretty and it didn’t always smell good, but you can live through it, ASSUMING you aren’t besieged by morons or gangs or grifters or filth/disease, our dreadful government or nuclear waste. That’s why we prepare so steadily.

          • bob cratchette

            FORGOT to mention nuclear plants melting down

          • Priszilla

            Fertilizers are made in plants, controlled by electronics.

            Hospitals rely on electronics.

            All cars and trucks and harvesters now run on electronics.

        • K2

          You are a mean old ****** arent you?

          • K2

            Or a sarcastic old *****. Whichever makes sense. English isnt my first langauge.

        • K2

          You wish for a collapse and when somebody asks what about other people? you say that they should lean on friends and plan and prepare?

          Thats your response. What are you smoking? Or drinking?

          This is not a movie. This is the real world with seven billion people in it. A ‘collapse’ will be catastrophic for a lot of people in reality. Livelihoods will be lost, lives will be lost, people will be scarred for life. Families and generations of people will be affected. No amount of planning and preparing will be enough for a lot of people.

          So wishing for a collapse, just because you want to get it over with it, is absurd. You are old, but not wise.

          And..that was a typo. I hope you know what that means.

          • Hammerstrike

            You are the one being absurd and get it butt-backward (unless you want as few survivors as possible).

            What you forget is that every day the collapse is delayed is going to make that collapse worst when it does happen.

            Most people are not winning time for preparations, they are becoming more vulnerable and less able to prepare due to the growing lack of jobs and inflation. Prepping is going to become more and more difficult.
            Circa 10 000 reach age 65 in the US alone every single, so there is sort of a major health factor too.
            The *** are they going to do, dweeb?

            Sooner it gets over, the more people can hope to survive, especially as far as the +50 are concerned.

          • K2

            Collapse is delayed because if a collapse happens it is not reversible (remember we are not talking about recessions like the 2008 one. Collapse means the 1930s great depression kind of event). And it will be even worse this time because the global economy has to support 7 billion as opposed to 1or 2 billion at that time. So if it happens there is no coming out of it, for the majority. Extra jobs wont magically appear after the collapse. But most of the existing jobs will disappear for ever.


          • Hammerstrike

            Oh it is reversible, once the root causes, which you are unaware of, of it has been removed.

            That part may look difficult now but certainly won´t be impossible after the collapse.
            When New York, Chicago and Los Angeles are like Detroit today, a police state will become unaffordable.

            It ain´t the collapse of the world, it is the collapse of what was once the west.

            No more FR dollar as an international trade currency.
            World economy won´t have to support the current living standards of the US and the european union anymore.

          • K2

            Why dont you enlighten me what the root causes are then?

          • Hammerstrike

            Have you ever asked yourself who benefits from inflation?

            youtube. co m /watch?v=tGk5ioEXlIM

          • K2

            Inflation is not the only thing that is causing the collapse.

    • Hammerstrike

      The Collapse have already started.

      Only way to stop another 2008 before 2016 is raising quantitative easing even further, which would increase an inflation rate in the 8-10% range.

      Prices of everything increase, pensions and social security does not keep up, fewer jobs available and % of jobs that are well-paying and full-time will

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    • Kent Harris

      Do not be surprise if the government knocks on your door and says we need collateral and we need to confiscate your home. That is next phase we will get if the economy goes south.

      • JulietteofOhio

        I’m afraid you’re right, and we worry about that more than anything else.

      • Justin

        What would the government do with all the confiscated homes? I cant’ think of a logical thing they could do with it. Tear it apart? Scrap the copper and raw materials?

      • Mondobeyondo

        They won’t knock. They’ll just come in and take it.

        “But isn’t that unconstitutional??”

        Heh heh. Heh. Hahahaha!!

      • Elaine Perkins

        There is a Plan for that already. It is in the “Agenda 21” UN PLan. Below is two Quotes from that Plan.

        “Current lifestyles and consumption patterns of the affluent middle class – involving high meat intake, use of fossil fuels, appliances, home and work air conditioning, and suburban housing are not sustainable.” Maurice Strong, Secretary General of the UN’s Earth Summit, 1992. –

        “We must make this place an insecure and inhospitable place
        for Capitalists and their projects – we must reclaim the roads and plowed lands, halt dam construction, tear down existing dams, free shackled rivers and
        return to wilderness millions of tens of millions of acres or presently settled land.” Dave Foreman, Earth First.

        Hide Agenda 21’s UN roots from the people
        “Participating in a UN advocated planning process would very likely bring out many of the conspiracy- fixated groups and individuals in our society… This segment of our society who fear ‘one-world government’ and a UN invasion of the United States through which our individual freedom would be stripped away would actively work
        to defeat any elected official who joined ‘the conspiracy’ by undertaking LA21.
        So we call our process something else, such as comprehensive planning, growth management or smart growth.” J. Gary Lawrence, advisor to President Clinton’s Council on Sustainable Development.

    • laura m.

      Agree Ohio, we are ten years into retirement in Ala. and know if executive orders are declared anything can happen to incl money stolen by gov. from banks. Here is what someone wrote on Dave Hodge’s site. If you have money in CD’s when they expire, move them into a money mkt checking and withdraw it over time, paying off debt if you have any and buy needed preps. Stocks and bonds bring income, so keep up with these and maybe cash out at the high’s. One lady bought her child a car and helped with a down payment on grandchild’s house, etc. Trade cars more often, etc. America has been derailed over a cliff into the abyss and the hammer could drop at any time. I have studied globalism and ag. 21 (called land use in the 70’s ) for almost forty yrs. We chose not to have kids knowing our gov was hijacked since appr. 1913. An older couple gave me books and tapes- full of info. yrs ago. I learned all 20th century wars were for corp. profit, the Fed Res. hoax, central banks, 501c3 agendas etc. We have a small group in my area but feel they’re few patriots to stand up when we go under martial law. We got rid of useless stuff and passed on all our books dvd’s to younger folks. No one cares or wants to learn. Only a handful of 30 to 50 yr olds are tuned in. Time is running out.

      • kbed

        I’m 25 and tuned in, have been ever since I learned about money creation when I was 19. There are exceptions to your rule. I would say about 5% of people in my age bracket are awake to the coming collapse.

        • Guest

          I’m glad to hear that, kbed.

        • laura m.

          If younger people know the basics they have computers to forward info out to friends, relatives. This is the best way to get out info. anyone can do further research online for free. The internet is spreading info, unlike before it was mail, giving out books, tapes and speakers mtgs. which produced very little results. You will get rejections from some who prefer to stay in denial, as any age group incl mine. If community leaders and church leaders took a stand en masse, decades ago, things would be different. Many are intimidated by the 501c3 IRS control freaks and only care about running churches as a business- social club. Business/community leaders are only interested in their image and making money and greed for gov. grants and higher taxes pushing ag. 21..

          • The Creator and Destroyer

            Lately I find almost every “shooting the breeze” conversation with friends and family can easily be directed to observable symptoms of the evolving collapse under way. I recommend finding opportunities to challenge their thoughts on a face-to-face is ALWAYS better than virtual.

            (BUT make sure to never go into a patriarchal or “sky is falling” diatribe”, rather just use socratic method of questioning in order to reason)

        • TAG

          Study Stefan Molynieux and the Non-Aggression Principle… Murray Rothbard’s good reading… Make your own reality I’ve got two your age and a Grandson. Life is for living while you make your way.

          • kbed

            Oh I’m deep down the rabbit hole my friend. Stefan is a good listen. Freedom talk radio, x-22 report, drudge, trends journal….I like to keep my options open but the more I’ve learned the more pessimistic I have become. Sometimes I just need to tune it all out and find a good looking girl to distract me for a while 😉 That or take the rod down to the fishing hole. Thanks guys.

          • xman

            please don’t associate the gifted Murray Rothbard with the hypocritical Molyneux

        • Kristen Marie Embler

          I’m almost 21 and I most certainly agree, kbed. Almost no one my age has a clue what’s going on other than knowing who got eliminated on “America’s Next Top Model.”

          • kbed

            I’m still a kid at heart. I don’t watch that kinda crap TV but I will occasionally go to the bar and drown my soul to watch my Red Sox lose. Most of my friends think I’m nuts but damn if I haven’t changed a few of their minds…and they most certainly have changed mine as well, to enjoy this paradigm while we have it because its not going to last forever.

          • Killervirus

            I’m 38 and many in my age group have no clue. It isn’t an age issue, it’s just most Americans walk around with their head stuck up where the sun don’t shine.

          • Skully69er

            Im 45 and no one my age group has a clue. Sometimes they ask me what I think of the economy and are in disbelief at the answers I provide…even after I explain the Austrian business cycle to them their eyes just glaze over. Austrian economics has become my passion ever since I first read Mises and am still amazed at how he, and other Austrians, have been so accurate about everything!

          • Carlos Casten

            Your post is hilarious…. Sheeple will get what they deserve, eventually.

        • ArkJean

          I’m 29 and also know we cant keep this false for much longer.

        • jsmith

          Good for you! I wish I had learned when I was in my thirties. Slowly but surely the public is first wondering why things are getting so bad for us peasants in the middle class, while the elite are getting richer. Just try to enlighten as many of your peers as possible. It’s a start!

        • Mondobeyondo

          Unfortunately, 95% of those people are in for a very rude awakening.

      • Fannie

        My son is 37. His friends, along with him, have no kids. In this economy, the struggle to care for them properly is difficult. I was surprised to see that all of them have no children. I do believe that they know what is coming.

        • Priszilla

          Usually families with kids have families with kids as friends.

          And singles have singles as friends.

        • Hammerstrike

          It is simple, if there is ever to be a retirement system following the collapse and overthrow/collapse of the current system, it will only be for people who contribute to the post-collapse society with children…

          • farmerfloyd

            Dont rely on anybody taking care of you. Get your OWN nest egg and save and buy gold or silver. I have 13 house rentals , all paid for because my day taught me to do your own lively hood and don’t plan on ANY retirement ! Plus
            gold and silver and it will come to that with no records .

      • Hammerstrike

        What are the retired folks who never had children going to do when the gubbermint seizes everything?

        What will be the policies of a sustainable post-collapse society? Those who have children gets priority over those that does not, simple common sense.

    • TAG

      Stay strong! We feel the same way here in Tennessee but I’m going to be a personal example of mean old man!

      • JulietteofOhio

        Good for you! My post, four above this one, was meant as a response to your post, and I don’t know what happened that it appeared above. Any ideas you may have are welcome and most appreciated!

    • squashpants

      Juliette, you sound a lot like us (my wife and me). I retired a couple of years ago and we moved to a small college town in Minnesota. We now own our residence outright (no mortgage), our car, and have no debts. We have been prepping for over a year, storing food, household items, and toiletries. I have a short list of items yet to get to be ready (including a shotgun). Our income is a combination of pensions and social security, and we can live quite comfortably on that, and actually save money. However, we are planning for the loss of those things, and are working to become as self-sufficient as possible (accumulating and filtering our own water, growing vegetables in the garden, etc.), so that money is a low necessity. And specific to that need, we are buying physical gold and silver. The only thing that really concerns me regarding readying for a collapse is sanitary — when the electricity goes off globally, running water, and sewer service will fail. Think about your bathroom habits in such a situation. BIG challenge, folks, and something that pioneering preppers need to put their brains to and share with the rest of us non-engineering types.

      Bottom line: use the dwindling time, and prepare as hard and fast as you can. The rest of problems can be solved after the fall.

      • JulietteofOhio

        Thanks for your input. It’s nice to know we’re not alone. I’ve been studying everything I can find on elementary sanitation. We have ten acres, three of which are wooded, and there was an old out house about 200 feet away from our house and 400 feet away from the well. My husband and our youngest son are digging it out this summer and we’re putting up a new privacy building. Of course in winter or in case of looters, or the EPA, it won’t be safe and never pleasant to make that trip. I’ve been making our laundry soap out of borax, Fels Naptha bar soap, washing soda and well water. It does a good job on everything but a human. We have a five gallon cast iron pot and a winch to move it over a small fire so I’ll have hot water. We have a well to make this feasible and I bought a washing plunger from Lehman’s in Kidron, Ohio. I’ve practiced, and while my Maytag is superior, this does a passable job. The sun drying the clothes should make the laundry sweet and clean. Thus my desire that if it’s going to collapse (and I think it’s going to…) get it over while I can still do all of this high-energy work. I can do it at 62, but probably not at 82. Same with gardening, canning, animal husbandry, etc. For personal cleanliness, I bought fifty bars of hand-milled French soap (not as expensive as it sounds) and dried them in the sun. The bars shrink and become hard as a rock which makes them last a lot longer. We have about five years worth of toliet paper in the attic and twenty cases of “Baby Wipes”. I have no idea how long those will last, so let’s get it on!

    • Martin R.

      As long as the U.S. Dollar retains its world reserve currency status, and executive order 11615 remains unchanged (hint: “Nixon Shock”), they can literally print as many U.S. dollars as they want / need, including enough to cover all bank deposits. It’s irrelevant how many dollars people have in the bank, under their mattress, etc. since there is metaphorically nothing backing it.

    • SonyAD

      It’s not the government robbing you blind, simpleton.

      It’s who you’ve handed it over to. The capitalists.

  • DJohn1

    The trouble is the very foundations of our economic system are being trashed in front of our eyes. The money system has been systematically disabled over a long period of time.
    Mr. Clinton signed international trade agreements that betrayed the American Worker.
    Mr. Bush has destroyed the labor board by stuffing it with rich people over about ten years. There is no justice at the labor board. Why does anyone think that senior discrimination and layoffs will be punished by anyone in government?
    How it used to be . . . a savings account increased by getting interest on the money. No more.
    We have seen a vast migration of our jobs being sent to countries that do not pay income taxes here. So who pays the freight to run government? Inflation or counterfeit money pays the bills. It is only a matter of time before this change in systems will destroy the entire money system and I think the people in government are well aware of this.
    So arm all the lazy people against the workers. That is what arming bureaucrats is. They live well in these bureaucracies. There will come a time when that is all gone.
    Right now we are seeing the dismantling of the American FInancial Empire. It is only a matter of time.
    Nothing you or I can do will change any of this.
    But be warned. When America is not there then you will have to fight your own battles.
    When America is not there, the dictators will swoop down and get the rest of you.
    When Europe stands alone, they will die alone because the nations of Asia will have succeeded in bringing the entire circus down. Then in steps the Chinese and Russians to divide the spoils.
    Then we are looking at another kind of world where there is no hope of advancing yourself. Where politics dictate how you are treated for sickness. Where euphanising people is the norm, not the exception. Just don’t get sick.
    The alternative is to change things back to what actually worked. No entangling foreign affairs. Tariffs protecting our jobs from those people overseas. Encouraging christian values and marriage instead of illegitimate children in one parent homes. Clean up the mess that our court rooms have become and change the way we do things.
    About 99% of the congress are lawyers. What does that tell you about our leadership?
    It is impossible to get disability or workman’s comp in this country without a lawyer. They want a third of the first check which is usually a back payment.
    I think the first thing that needs to change is the thievery in our courts favoring lawyers over ordinary citizens. The second thing that needs to change is to put all the laws in plain English.
    I think the people in charge have a lot to answer for. But that too will come with time and change.

  • Jack Harper

    The single reason Americans have enjoyed the lifestyle over the past 40 years is they have been raking the pot at the poker table.
    Americans are the dealer at the table and get a cut of every purchase made and settled with U.S. funds.
    This is rapidly ending.
    Many non-NATO members are switching to a basket of currency’s in settling trade deals including oil purchases.


      The wily Putin is swapping his gas for Yuan, which will be backed by gold within ten years.

    • Mondobeyondo

      China and Russia are already discussing using their currencies in place of the U.S. dollar for international transactions. Many other countries are contemplating the same.

      They’re not stupid. They see our fiscal situation. What do you expect them to do? Folks, this is serious, and we are in serious trouble.

      “We love America! We will throw another $20 billion down the rat hole because we love your country”?? Nuh-un. Doesn’t work that way.

  • FirstGarden

    “Dear God, make me a bird. So I could fly far. Far far away from here.”

  • Mike

    I think there will be a collapse; I thought it would have already happened by now. We need to get it done so we can start all over again.

  • peace angel

    Micheal check this out.

    At Before It’s News “THE Theft of Your Retirement Accounts Will Accompany the Seizure of Bank Accounts”

    THIS is very telling.

  • Andy Sloan

    It is deflationary; but when the US$ collapses that is inflationary; when the debt default contagion takes hold, the money supply will shrink and with the productive capacity of the US economy greatly reduced and substantively held in the hands of giant corporations, you have a recipe for an inflationary depression.

  • Andy Sloan

    “I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic destroyed.”
    Abraham Lincoln, 16th President of the United States


      He should know.

      • Andy Sloan

        John 10:10

        The thief cometh not, but for to steal, and to kill, and to destroy. I am come that they may have life, and may have it more abundantly.


          Spot on, Andy.

        • Elaine Perkins

          This is the Last Days. All Prophecy is merging together getting the world ready for Jesus Christ to return. America is gone. The only “Hope” we have is in Jesus.
          Those who are denying Him are in for a sad time; seven years of pure Hell on Earth and then…ETERNITY and TOTAL Separation from GOD forever and forever. What’s FINAL is FINAL.

      • Andy Sloan

        “The purpose of this financial crisis is to take down the U.S. dollar as
        the stable datum of planetary finance and, in the midst of the
        resulting confusion, put in its place a Global Monetary Authority [GMA –
        run directly by international bankers freed of any government control]
        -a planetary financial control organization”- Bruce Wiseman


          Hard, bitter times ahead.

  • Andy Sloan

    The sorry truth is everyone, that the coming collapse is the terminal phase of a long-term plan to destroy the US economy, so it may be merged into the New World Order


    The posts here clearly show that people here understand what is going on. I would only add this. QE is the greatest bank robbery of all time. The wealthy are reaping huge but the lower orders are going to be stuck with the inflationary bill. If gas costs 15$/gallon the well to do would be very happy to see less traffic congestion. The rest of us will sleep in our cars at work. You already see it in the grocery store as one witnesses the incredibly shrinking containers of favorite foods. An oz here and oz there… The Obama Administration has declared war on coal! The price of electricity will soar. Someone told me that 70% of all electric power is devoted to moving one item, water. Our traditional way of life will rapidly become even more unaffordable than it is now. Can you hear the Bell Tolling?

  • Johnny Palestine

    Sir, your website is always worth reading and memorizing.

    The ” federal reserve”; not federal nor a reserve of anything but ink, toilet paper, fleet of printing press and steel plates. the FR is printing rough toilet paper with numbers and masonic images.

  • brimp

    I’m out of debt, no mortgage, have some gold and silver, have a gun with ammo, have 2 months of food that I cycle through, but still have significant funds in US banks. I’m not sure where to put those funds. Are the bank “safe”? Is the dollar safe? Putting all of it into metal seems risky. Speculating in real estate seems risky. The stock market looks risky. Any suggestions?

    • John Doe

      40% gold 40% silver 10% cash 10% bitcoin

    • Guest

      The way I see it is that gold and silver are money, have intrinsic value and will always be worth something. Don’t look at precious metals as an investment. I know, I know, most people who buy gold and silver want them to go up in fiat terms. I certainly do. But I have tried to stop looking at them that way and instead consider them a hedge against inflation and insurance in the event of a collapse of the dollar. Will the dollar eventually become worthless? I don’t know. It’s certainly possible. I don’t know of any fiat currency in history that didn’t eventually fail. But, as you know, the advantage that the dollar has over other fiat currencies is that the dollar is the world reserve currency. The foreign demand for the dollar is what is keeping this game going. But foreign nations are moving away from using the dollar for trade purposes. How long will it be before that starts to affect the value of the dollar? Again, I don’t know. For me, the hardest part about all of this is the uncertainty.

    • MstrJames

      maybe not a complete solution. But I might suggest stocks in wholesale foods companies. Their system is fairly genius. No matter what food cost, they just add some profit and deliver it to convenience stores etc. For instance SYSCO foods once had profits for over 30 quarters straight. Literally profited through two or more recessions. During deflation they still profit. Inflation they just profit a bit more. No matter what the economy does everyone will still eat. They just buy whatever food beer cigarettes that is available and distribute it. For a hefty profit.
      Also Obama, Pelosi and every repub and dem. are buying natural gas royalties. America will always need some energy and the liberal dems are pretty much outlawing energy sources that compete with their Nat. gas. With royalties you don’t have to own the land and are not responsible for any expenses. You just get a percent of actual sales for owning the rights. Its how Obama makes 72,000k per month without any headaches or expense. Its why Pelosi is hell bent on taking out coal and limiting other energy sources. This no expense. profit system has been around for about 100 years.

  • NoFoolHere

    Excellent article of what has been happening for the past 14 years. Meanwhile your fiat doolar buys less and your taxes and regulations are higher and your standard of living is shrinking all under survellance with the police state. All working perfectly according to plan. Keep it up NWO guys the sheepeople are toatlly hoodwinked. Bigger bonuses are ontheir way. Congrats!!!

  • docbooks1

    has never been a “free lunch” since the dawn of man thousands of
    years ago until the United States came along and created the most
    wealth ever know to man through FREE ENTERPRISE conducted by FREE
    MEN. Then came along the bleeding hearts and so began the “War on
    Poverty”. That war not only has been lost, the
    subsidizes and
    encourages poverty
    and failure. We get more of whatever the government subsidizes. The
    plan is working.
    has ensured that
    generations of ever expanding “poor” can no longer care for
    themselves but MUST be supported by the Government so that they can
    have a “Free Lunch”, all the while draining the accumulated
    wealth from the prior 200 years.
    is no “Free Lunch” and all things eventually return to the mean.
    are headed toward an economic singularity. Be prepared or be
    to fail. Break free from the normalcy bias; the event horizon

  • DJohn1

    I can see these articles going into history books in the future.
    Explaining all the things that led up to the disaster. The disaster being an economic collapse of the dollar and its implications world wide.

    Make no mistake, it will happen. The only thing lacking is when and where it will happen. Given people that are surf riders on any collapse. People that take advantage of the falling stock prices to make money.
    These sharks are quietly waiting in the wings. They are betting on a U.S. Failure and stand to lose a lot of money if it does not occur. The question most important is WHEN.
    For Instance, someone knows when 2007-2008 would occur.
    I have always thought of this as insider trading and that it might be illegal. I stay away from the markets for that reason.
    How do you win with a combination of hard research, PSI ability(premonition), figuring trends, without getting into trouble. I know at least one rich person that got that way by listening to what his stomach had to say about a stock. If his stomach got upset, he sold.
    With all that in mind, I come up with a day in November, right after the mid-term elections in November of 2014.
    Probably somewhere around November 5th.
    I don’t plan to be anywhere near the stock market on that date. Neither am I invested directly in the market and I intend not to be.
    I think the government will stall things that long.

  • yisrael

    It’s good that many people are seeing the handwriting
    On the wall. I knew all of this since the late 1980
    because I worked for an investment advisory for
    25 years and has been privy to certain information
    That the public don’t see. To watch this country
    Unravel in the manner that is unraveling is mind
    Boggling… Think 1971, the US gov. Pull out the
    Nation’s credit card. We experience recessions
    in 1981, 1991, 2001 and then thereafter the fed
    the blew bigger bubbles. 2007 booooom!!! We’ve
    Been a slow motion deflationary depressions
    Every since: rising unemployment, unsustainable
    Debt at gov, corp. and private , huge student loan
    Debt ,declining wages enormous inequality, peak
    Oil the list is long folks. We now reached a dangerous
    phase of the depressions whereas everything seizes up.
    Well I’ll say this we’re all going to be wearing the same
    Masks with no clothes on! The rich, poor and everybody
    In between ! No one will spared how sad.

  • TAG

    Get your shovels ready; there’s going to be a lot of digging to be done!

  • Shays’ Rebellion

    Notice the federal government re-revised the ISM number today. It was initially showing weakness then, surprise!, they revised the numbers quickly to show strength. I’m sure they will show GDP growth in Q2 in order to avoid the appearance of a recession (back-to-back negative GDP growth is the definition of a recession). Remember when only the Soviet Union lied about the strength of its economy?

  • jakartaman

    tick tock – yawn

  • Trailer Park Investor


  • FirstGarden

    Retribution may be slow in coming, but it’s coming.

  • Jeff

    Most of the time, most of the people pay taxes, including companies and yes the very rich pay taxes; the IRS is now chasing people to ever crack of the world in search to pay the national debt. If this amount was added into the system, it would not even affect an extreme low percentage of the debt problem. The real cause to the National debt is greedy politicians trying to build their own gov pyramids and they take their marching orders from the private Federal Reserve Bank profit origination and have forgotten to serve the people who elected them, with the exception of passing to the debt and making them slaves to the debt.

  • Chris

    I’d say we’re screwed. The FED has tried to delay the inevitable as well as save their chums but it hasn’t worked out well overall and so when the collapse happens it will be devastating, probably the end of the financial system. They will then have the excuse to say ‘well look we tried, you know, but i think now we’re gonna have to move to another system (the full on NWO system)’ . People will not like it and they will riot, hence the prepping for the police state tactics.

  • MichaelfromTheEconomicCollapse

    I expect unemployment to get worse – especially in 2015. In fact, I think that this is about as good as employment in America is going to get from here on out.


    • GSOB

      The Affordable Care Act will ensure that.

  • Mondobeyondo

    English translation: People are buying only the necessities.

    If I were an investor in the stock market, I’d buy stocks in Charmin, Pampers, any utilities (especially water, electricity and gas companies)…, hmmm… what else? Doesn’t matter much to me right now, because I’m broke.

    Walmart and other retailers? Nope. You can’t spend what you don’t have.

  • Jcg

    Buy silver buy gold. JESUS SAVES!!

  • Mondobeyondo

    One more time, class….

    We are in a depression.
    It is a deflationary depression.
    The Great Depression of the 1930s was also deflationary.
    Some things will obviously become cheaper to buy.
    But it won’t matter, because you won’t have the money to buy them.
    How long it will last is anyone’s guess.
    Insofar as what President Obama, Congress, the Labor Department, etc. are concerned – they really don’t care. As long as they have THEIR jobs, they’re happy as clams. And they want your vote, too.

  • old fart

    but but we all now have free medical, What more could we want.

  • Bob Fearn

    Most people here seem to agree that the US is in trouble however not many mention that having trillion dollar wars against countries that never threatened or attacked America is a big part of the problem???

    • Malcolm Reynolds

      Well, that certainly seems to be the left wing take on things. But then back in reality…

      • Gay Veteran

        how many $TRILLIONS has our war of aggression against Iraq cost us (now in the future with veterans’ medical benefits)?

        • Malcolm Reynolds

          lol. I guess you thought needed to post it twice because you perhaps judged me by your own inadequacies.

          Why is it THAT money is the only money you left wingers seem to ever whine about spending?

          • Gay Veteran

            hey Einstein, I opposed the war because I recognized it for the monstrous war crime it was.

            and you don’t know shi t about what spending I support

          • Malcolm Reynolds

            And I’m sure I’d find all those objections your disqus log, but I’m betting nahhhhh, so I’ll just stick with that.

          • Gay Veteran

            “…Too bad no one on the left thought so when they were voting for the war….”

            gee, you just now figuring our that “the left” in Congress is just as imperialistic as “the right”?

            “…and certainly Saddam shoulda recognized that screwing with the UN inspections and firing on the US every day would eventually cause repercussions….”

            oh yeah, because that justified spending $TRILLIONS, costing the lives of 1000s of Americans over a million Iraqis. MORON

            “…And since you’ve changed the subject from ‘no threat’ I’ll take it as capitulation that you were bloviating just to hear yourself…..”

            was it a threat to America? NO

            “…And I’m sure I’d find all those objections to left wing spending in your disqus log….”

            you’re the one who brought it up for the first time

          • Malcolm Reynolds

            Run along now skippy. I think I just heard your boyfriend’s zipper drop. You must be hungry by now after all that wasted flapping of your gums.

          • Gay Veteran

            typical reply of the intellectually challenged.
            come back when you can actually make a coherent argument

          • Gay Veteran

            seems you’re fixated with zippers, p enis breath.

          • Malcolm Reynolds

            Ahh, you’d be wrong about that too. You’re still the only gay one here.

          • Gay Veteran

            how would you know, dumbas s

          • Keith Liberty

            Hey Malcolm, the FEDS just announced that terror boogeymen are in your closet. You better go get them because the GUBMINT said so….

            Simon says….Govt says….and Malcom does it….


          • Malcolm Reynolds

            Why don’t you fill me in on WTF you’re babbling about so we both know. Dolt.

            Try just making your point because when you try with all that arrogance and condescention, you just sound like a twit.

          • Keith Liberty

            You must be either a govt employee or on welfare……Which one?

          • Malcolm Reynolds

            No Luke, I’m your father.
            Good grief your mother is cheap.

            Wait! I hear Alex Jones screaming about false flags. The sun must’ve come up in the east and he can’t handle it
            Run along and grace someone else with your presence now because the habitually progtarded like you screaming nonsense and projecting your mental illnesses at me is boring.

          • Keith Liberty

            Aren’t you Hitler’s nephew?

          • Malcolm Reynolds

            So, you’re not known for your intelligence. As they say, I guess you removed all doubt.
            Lol. dolt.

          • Keith Liberty

            Hey there’s a Taliban hiding in your closet…..LMAO

          • Malcolm Reynolds

            Hmmmm. I make fun of the gay dolt and now I cant get you to stop humping my leg while you laugh like a loon. You’re the pole smokers nutter boyfriend aren’t you?

          • Keith Liberty

            Or were you Stalin’s masterbaitor?

          • Keith Liberty

            I mean surely it’s believable that nomads could get away w 9/11 while training for 5 years openly while 20+ intelligence agencies and military didn’t see or hear a thing to stop it….

            Yeah, Malcolm, you’re by far the only idiot on this comment section.

            Clearly, you have be on the govt dole to believe what you do….pure ignorance….

          • Keith Liberty

            I bet if you were living in the 40s, you’d have been chasing the Jews as well…

            Malcolm keep chasing your govt – propagated boogeymen……they thrive on people like you who believe in them LOL

      • Gay Veteran

        Iraq war costs U.S. more than $2 trillion: study

        Mar 14, 2013

        (Reuters) – The U.S. war in Iraq has cost $1.7 trillion with an additional $490 billion in benefits owed to war veterans, expenses that could grow to more than $6 trillion over the next four decades counting interest, a study released on Thursday said….

        • Malcolm Reynolds

          Of course wars are expensive. Here, I’ll spell out the part that doesn’t comport with reality because you don’t seem to catch on too quick.

          ” against countries that never threatened or attacked America is a big part of the problem”

          Bilge as you like to say…

          • Gay Veteran

            oh yeah, Iraq was such a HUGE threat. pure BS, but I expect that from a pants wetting coward.
            and chickenshi t chickenhawks don’t want to pay taxes for our imperial wars, thus the national debt continues to balloon.
            and who cares about the over 1 MILLION Iraqis who have died because of our war of aggression

          • Malcolm Reynolds

            Meh, if firing on our planes almost every day isn’t a threat I guess you don’t know what one is. But then, that’s to be expected with your kind.

          • Gay Veteran

            oh yes, that was such a HUGE threat that it required spending $TRILLIONS to wage a war of aggression against Iraq.


          • Malcolm Reynolds

            LMAO! Thanks for disagreeing with yourself after all the BS hot air you blew all over my back side. Idiot.

          • Gay Veteran

            hit a nerve?
            yeah, chickenshi t chickenhawks like YOU are destroying America

          • Gay Veteran

            “… I didn’t realize we put exact dollar values on threats…..”

            people like you don’t, and that is why we are in debt yet more $TRILLIONS. but that’s ok, that is how empires collapse

          • Keith Liberty

            Any nation has a RIGHT to fire on military planes flying over its SOVEREIGN airspace…..duh

          • Malcolm Reynolds

            Yea, especially under conditions of a cease fire it signed as a result of acts of aggression it committed.
            go back to sleep. Being awake is taxing your mental faculties.

          • Keith Liberty

            Now what business was it of the USA to even be entangled in those foreign engagements that DID NOT ATTACK the USA homeland?

            Please mercenary speak up….are you a war criminal as well (kill people that do not directly attack your homeland)?

          • Keith Liberty

            Clearly with respect to us attacking nations that DO NOT DIRECTLY attack the USA homeland….

            You need an education on what NATIONAL DEFENCE is….

          • Malcolm Reynolds

            And you apparently need a history lesson.

          • Keith Liberty

            Screw the Corporatist Cartel called the UN whose goal it is to violate every nation’s sovereignty. Millions of Americans will never support Military action against any nation that does not attack our homeland directly.

            Screw the Globalist Cartel full of lawless nations called the UN.

          • Keith Liberty

            Saddam told Bush he was going into Kuwait and Bush didn’t stop him…..then after he did Bush declared war….

            People like you are suckers and believe every govt excuse to go to war…..

            Why don’t you go over there and fight since you’re a big pro-war supporter. We could use you on the front lines so us more intelligent folk can improve the country.

        • K2

          Wasnt the iraqi oil supposed to pay for it? Atleast most of it?

          • K2

            I dont know for sure myself, what do you think?

          • Gay Veteran

            that’s what DC told us

            they lied, as usual

      • Keith Liberty

        This is a comment I saved from another article. I didn’t keep the writer’s name so I can’t give credit.

        “Let’s put a few things into perspective with the Muslim batting line-up – Sunni vs Shi-ite:
        Indonesia = Sunni country. This is where Obama spent several youthful formative years. Obama’s father was supposedly a Sunni Muslim.

        Muslim Brotherhood = a Sunni terrorist organization

        Al-Qaeda = a Sunni terrorist organization

        Saudi Arabia = Sunni country

        Iraq = Mixed Sunni and Shi-ite, although a large Sunni population. Shi-ite rulers/government. The terrorists currently killing Iraqis are Sunni terrorists aligned with Al-Qaeda. Baghdad is Shi-ite ….this is the terrorists’ “golden” target.

        Iran = Shi-ite country

        Syria = Sunni country with minority Alawite rulers/government (Bashar al-Assad is an Alawite).

        Hamas = Sunni

        Hezbollah = Shi-ite

        WHEN YOU KNOW WHO IS WHO and that the Sunni absolutely HATE the Shi-ites…it potentially explains a lot of things such as why Saudia Arabia is sending arms to Al-Qaeda against Syria’s government, why Iran backs the Syrian government, why Obama hates the Syrian leader Bashar al-Assad and why Obama’s regime is, through backdoor channels such as Libya (which may explain the Ambassador Stevens death, don’t you think?), arming Al-Qaeda rebels, why Obama backed the Muslim Brotherhood leader that was put in place by Egypt (before the Muslim Brotherhood president was ousted by the military), and also why Obama let those 5 Sunni Taliban let go for basically nothing, etc., etc.

        So let’s see how our Sunni-flavored President Obama helps the Iraqi Shi-Ite government and it’s Shi-ite people who are currently being beheaded and murdered by the Sunni terrorists.”

    • K2

      Not all wars are bad or evil or unnecessary or whatever you think they are. The afghan war was absolutely necessary.

      • Keith Liberty

        14 years of war in Afghanistan for a 1 day event were necessary…really?

        The hijackers were from Saudi Arabia…why didn’t we attack them instead especially since they financed them and ALL….?

        • K2

          1)Even though they were saudis, the base of alaeda to which they belonged was in afghanistan.

          2) And they was no other way to root out alqaeda and taliban than to stay there for years. Which became 14 yrs because in wars things do go according to plan.

          • K2


          • Keith Liberty

            Sorry…..that dog don’t hunt….

            The SAUDIS continue to finance them to this day and no one is invading THEM

            Sounds like you’re oblivious to this major conspiracy

          • K2

            I know that saudis are continuing to finance them. But which saudis? The ruling saudi family? or just some people in their family?or some saudi business men? or average citizens?

          • Keith Liberty

            The Royal Family…..the same one that courts the Clinton’s, bushes, Obama’s

          • K2

            Osama bin laden’s family was a construction based billions of dollars worth corporate empire. And his family dint get along well with the royals. He was one of top financial contributors to alqaeda. The taliban in afghanistan gave hims and his org alqaeda shelter.

          • Keith Liberty

            And the Controlling Royal Family just allowed it to happen……yep….

            And we all kn ow that the C1A funded and trained the mujahadeen and to this day ship weapons to them in Libya/Syria and God knows where else…

            Sorry, but you’ve fallen in a hole and there is no way out without admitting the truth that is staring you in the face…

          • K2

            The royals could have been coaxed/forced/cajoled or bought off to get good deals on saudi oil in return for US support of their rule. Or they themselves got in bed with the US, to get their help to gain and retain their grip on power in their country, in exchange for good oil deals. But these both parties are on one side while osama and AQ/TALIBAN are on the other.

            The mujahideen whom cia trained to fight against soviets were not taliban at that time. They later joined the taliban after US left when the soviets were booted.

            Not all mujahideen are AQ/TB. Mujahideen can be anyone, even those who fight against AQ.

          • Keith Liberty

            This is a comment I saved from another article. I didn’t keep the writer’s name so I can’t give credit.

            “Let’s put a few things into perspective with the Muslim batting line-up – Sunni vs Shi-ite:
            Indonesia = Sunni country. This is where Obama spent several youthful formative years. Obama’s father was supposedly a Sunni Muslim.

            Muslim Brotherhood = a Sunni terrorist organization

            Al-Qaeda = a Sunni terrorist organization

            Saudi Arabia = Sunni country

            Iraq = Mixed Sunni and Shi-ite, although a large Sunni population. Shi-ite rulers/government. The terrorists currently killing Iraqis are Sunni terrorists aligned with Al-Qaeda. Baghdad is Shi-ite ….this is the terrorists’ “golden” target.

            Iran = Shi-ite country

            Syria = Sunni country with minority Alawite rulers/government (Bashar al-Assad is an Alawite).

            Hamas = Sunni

            Hezbollah = Shi-ite

            WHEN YOU KNOW WHO IS WHO and that the Sunni absolutely HATE the Shi-ites…it potentially explains a lot of things such as why Saudia Arabia is sending arms to Al-Qaeda against Syria’s government, why Iran backs the Syrian government, why Obama hates the Syrian leader Bashar al-Assad and why Obama’s regime is, through backdoor channels such as Libya (which may explain the Ambassador Stevens death, don’t you think?), arming Al-Qaeda rebels, why Obama backed the Muslim Brotherhood leader that was put in place by Egypt (before the Muslim Brotherhood president was ousted by the military), and also why Obama let those 5 Sunni Taliban let go for basically nothing, etc., etc.

            So let’s see how our Sunni-flavored President Obama helps the Iraqi Shi-Ite government and it’s Shi-ite people who are currently being beheaded and murdered by the Sunni terrorists.”…..

          • K2

            All sunnis groups in most countries are painted as alqaeda or as aligned with alqaeda.But nobody knows for sure. And saudi royals could be funding them, yes, be we dont know whether those groups are affiliated to AQ/taliban. Usually not all sunni terror groups are alqaeda or depend in alqaeda.

            I though obama’s dad was shia. He being soft on iran, and not entering syria..but not blinking about bombing pak through drones or entering libya means was dad is more likely shia and he was soft on them. Is indonesia completely sunni? Or are there any shia parts too in that country like in many other muslim countries?

            Sunni and shia terror organisations hate each other and fight against each otehr in many countries, i too know that.

            But when there are no shia terror groups with in their locality, to fight, sunni’s fight amongst themselves too. Maybe not two sunni terror groups with each other so far, but sunni terror group vs sunnis in govt/army. Thats what going on in pak.

          • Keith Liberty

            No, his father was SUNNI

          • Keith Liberty

            All the more reason to stay out….BUT….that’s AL-Q purpose….use them to attack Americans as needed to justify military intervention…

            Sounds bad….but obviously true to me

          • K2

            Nope. Not if they attack you on home soil…9/11.

          • Keith Liberty

            14 of 16 were Saudis and we have yet to attack Saudi Arabia……why?

          • K2

            They were harboured sheltered, trained and launched by AQ/TB in afghanistan. And there is a possibility they specifically chose saudis so that if US decides to strike back….it directs its response at saudi arabia, rather than afghanistan.

          • Keith Liberty

            Oh…..and I’m sure you’re happy that we have been guarding OUR opium fields since the 1970s as well….

            I’m sure there are great lies for that criminal act as well…..

            Crickets chirping

          • K2

            Sorry for the late response. I have been busy with otehr things, i couldnt visit this site.

            And no i am not happy with that opium thing. But taliban was indeed sheltering alqaeda.

          • K2

            The saudi royals contribute to other extremist organisations but not alqaeda and its shelter the taliban. One of alqaeda agendas was to boot out US presence in saudi (the presence courtesy of saudi royals)

    • Keith Liberty

      This is a comment I saved from another article. I didn’t keep the writer’s name so I can’t give credit.

      “Let’s put a few things into perspective with the Muslim batting line-up – Sunni vs Shi-ite:
      Indonesia = Sunni country. This is where Obama spent several youthful formative years. Obama’s father was supposedly a Sunni Muslim.

      Muslim Brotherhood = a Sunni terrorist organization

      Al-Qaeda = a Sunni terrorist organization

      Saudi Arabia = Sunni country

      Iraq = Mixed Sunni and Shi-ite, although a large Sunni population. Shi-ite rulers/government. The terrorists currently killing Iraqis are Sunni terrorists aligned with Al-Qaeda. Baghdad is Shi-ite ….this is the terrorists’ “golden” target.

      Iran = Shi-ite country

      Syria = Sunni country with minority Alawite rulers/government (Bashar al-Assad is an Alawite).

      Hamas = Sunni

      Hezbollah = Shi-ite

      WHEN YOU KNOW WHO IS WHO and that the Sunni absolutely HATE the Shi-ites…it potentially explains a lot of things such as why Saudia Arabia is sending arms to Al-Qaeda against Syria’s government, why Iran backs the Syrian government, why Obama hates the Syrian leader Bashar al-Assad and why Obama’s regime is, through backdoor channels such as Libya (which may explain the Ambassador Stevens death, don’t you think?), arming Al-Qaeda rebels, why Obama backed the Muslim Brotherhood leader that was put in place by Egypt (before the Muslim Brotherhood president was ousted by the military), and also why Obama let those 5 Sunni Taliban let go for basically nothing, etc., etc.

      So let’s see how our Sunni-flavored President Obama helps the Iraqi Shi-Ite government and it’s Shi-ite people who are currently being beheaded and murdered by the Sunni terrorists.”


  • bob klinck

    If people animate the economy by the rapidity with which they shuffle money around, then the conclusion that must be drawn is that the population as a whole is responsible for busts and booms. This is nonsense, as it would make it impossible for the banks effectively to govern overall economic activity through their policies on credit issuance, which they openly state they are doing.

  • Jacob

    Dude, what you are seeing IS QE. Its an increase in money supply that is not entering the economy, hence seemingly lower total velocity.

  • Mondobeyondo

    If you would just take time enough not to watch that “Gangham Style” video, you MIGHT get something accomplished.
    Yes, I’ve watched the vid, numerous times.
    No, I will not post the link on this site.
    It’s got 2 billion hits on YouTube.
    If you can’t find it by now.. well……..

  • Mondobeyondo

    First of all…. RELAX.
    You are scared. We all are.
    Fear is Satan’s greatest weapon.
    Worry is fear’s cousin.
    No need to fear EITHER of them!
    Faith conquers fear, my friends.
    Proverbs 3:5-6

  • Rob W

    Should have taken care of the people, not the banks, ala Iceland.

    • DavidisDawei

      Amen Rob,
      but they were following orders and took care of the people they really work for.

  • Are any of you folks buying precious metals? I would strongly advise it. Some people think I’m trying to be a shill for gold. With China buying 100 tons per month and India close behind, it doesn’t affect the price if you go out and buy 100 ounces of gold. It is artificially cheap right now because it’s being surpressed by the US govt. GET SOME

  • Priszilla

    Oh, yes, Sustainable development is BAD.

    A society where you can’t sustain your life style for ever and ever is so much better.


  • alan

    I just read Seattle is doing their part to speed things up. They approved minimum wage to $15!

    • GSOB

      That’s terrible…

  • Mondobeyondo

    Thank you, Watermill Express.

    For 25 cents a gallon, you have allowed me to gain enough water to bathe,drink, etc.
    Not enough to swim, but you are lifesavers 🙂

    You guys are awesome!!
    When the city turns your water off, I know where to turn to.
    I WILL get out out of this bind.
    I WILL NOT forget you.

  • JSB

    I pray for our leaders and my country. The Lord Jesus Christ will do anything to get our attention. He loves us all dearly and wants our hearts. Turn to Him now and He will comfort you. Never stop praying.

  • Stay healthy because it is shaping up to be one heck of a fight. One part of me hopes they can kick the frigging can down the road longer, so we have more time to prepare and for my young son to have a semblance of a normal childhood. The other part says oh just get it over with so we can start afresh.

  • Kristen Marie Embler

    They especially view veterans as parasites. Absolutely disgusting seeing as they were the ones who defended these evil scumbags.

    • Kent Harris

      I grew up in Chesapeake, VA which is right next to Norfolk. The navy is big there and I spent time in the navy too. I would say most people who are past military are rather humble. I guess when you give up so much to serve others and this country you have to be humble. Actually, even now living in the suburbs of Atlanta the military at our church is rather the backbone in serving. Keep the faith Kristen.

  • rado

    Reason to attack Russia, China, Mars and all other planets.

  • John

    Go read, “How hedge funds get away with siphoning off Americas wealth”, and for those of you with some intelligence will recognize what you are in for. And will be mentally prepared for the inevitable.

  • Reality Bites

    Velocity is simply a ratio of GDP divided by money supply. If money supply goes up faster than GDP, velocity will decrease. It’s pretty much a meaningless ratio. Hyperinflation will only occur when businesses feel confident that they can raise prices and still keep their customers. But customers aren’t spending like they used to; most of the money being “printed” is going into stocks, bonds, real estate, and savings accounts. If the U.S. consumer starts feeling confident enough in the economy to start spending again, we’re in for huge price increases (hyperinflation). If they don’t, we’re headed for a debt-induced mega-depression. It’s like we’re drunk and standing in the middle of a see-saw – one slight movement to the left or right and the chain reaction begins. Good luck, everyone.

  • damienflint

    Replaying Germany’s war economics of the late thirties and the drive to expansionary wars of desperation to distract and stave off the inevitable implosion of the numerological papering over the cracking disconnect between speculative financial juggling and the actual resource-base real economy

    But the rats have nuclear lugers in their bunkers

  • Raul Miller

    Look, none of what you gloom and doomers are predicting will happen…NONE OF IT. So in five years when you realize this please smack yourselves in the forehead and say “Wow, I could have lived a more stress free life if I weren’t so paranoid.” Please just once learn a lesson. You all help to create this cold gray world, so own your mistakes and try to do better in the future. Thanks.

  • citizen nada nada

    The chart doesn’t consider that for too long the US has a net importer…..Low money velocity is not a bad sign in itself, the US must export to survive, requires infrastructure to do that…high velocity is economic activity but puts us in danger of making a lot of bad transactions with ruthless banks, high interest….The banks need quality customers and exporting creates that dynamic…too often bad policy sparks high money velocity, that’s what we seen in the run up to 2008. Post 1990 we seen velocity spike but the policy was too sweet. If you’re the shark then of course you want high money velocity….I want to see it grow very gradually, steadily but I am OK with it moving downward a tad more…. The US must work, sell, export something, anything!

  • AssHat900

    For most people the collapse started in the 70s

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