BiggerPockets

We have all talked about it on here since last year. I know many of us expect it with our countries balance sheet so out of wack, the fed would rather see a massive inflationary period because they can deal with it better then massive deflation. It looks like we are starting to make the turn this spring with commodities beginning to come off their bottoms.

Anyhow...I thought this was a great read...some of it above my understanding but it makes a bunch of great points.

http://www.hussmanfunds.com/wmc/wmc090518.htm

As Nobel economist Joseph Stiglitz recently noted, the bureaucrats that designed this bailout are "either in the pocket of the banks or they're incompetent. It's a real redistribution and a tax on all American savers. This is a strategy trying to recreate the bubble. That's not likely to provide a long-run solution. It's a solution that says let's kick the can down the road a little bit. They haven't thought enough about the determinants of the flow of credit and lending."

It just seems as though they keep pushing things off. The peak keeps getting higher and higher and the collapse will eventually just get bigger and bigger.

If we didn't get propped up by the govt in 2001 we might have already hit our bottom and started back to recovery. Again we are just pushing it off to another day. Eventually it will all compound when our massive debt meets massive inflation meets the failure of SS meets the failure of healthcare. Both of those systems are expected to be insolvent by 2015-2030. Those dates seem a lot further away then they actually are.

IMHO
2001 thru 2005 was the result of hyper inflation

look at the growth of M2 and M3. That was the net result of the Dot.com bust.

When AG dropped rates the way he did, he started the ball rolling. Plus for some reason the Fed was pumping cash in the economy prior to 12/31/1999

Trying to determine a cause for this crisis by looking at policies put into place during the Clinton/AG years completely misses the point, the Banks lent money to those who couldn't possible afford it, sold unregulated securities to people who didn't understand them rated triple A by the corrupt rating agencies, the SEC lifted the limits on leverage the financial institutions could use on the balance sheets and slept through their roles a system guardians, ALL of this occurring in the last 8 years under Republican leadership and allowing the financial community to almost destroy our economy, while
being touted by the past administration as years of positive growth, unbelievable!

Listening to Republicans and republican policy supporters moan just reinforces my belief that they have learned nothing and deserve no support whatsoever until they acknowledge their part and apologize for this mess and their destructive policies.

Hyper-inflation is definitely one of many possible outcomes of trying to save people from collapse in their lives, but what you do differently besides the hands-off, let the financial system work things out themselves attitudes the got us here.

Hi Mike,

Well saying that the Bush admin was a miserable failure is like saying the Challenger disaster was a minor technical problem.

Spent 6 Trillion Dollars more then he took in and left the world near financial collapse, it was his watch, the dollar was burnt there, and nothing to show for it. Just gone! The first person to say we are safer gets thrown up on!

Reminds one of Pogo, "I have seen the enemy and it is us!".

Hopefully, congress will pass a law requiring sterilization of the whole family,
OK, thats getting nasty but ..

I agree Obama definitely has socialistic tendencies and some of them, quite upsetting. I am watching in sadness at the car companies and the mis-handling of the bankruptcies.

My husband and I own some unsecured GM bond paper and it is pretty clear now that we willed be wiped off in favor of supporting the UAW which burns us quite a bit.

It is true, we will recover from the bite, but for the UAW ?, Smacks of "Atlas Shrugged" doesn't it? Completely undeserving of any support, but so many jobs in supporting industries.
Not sure which way is right.

But hopefully, there will be some some good to come out of the other infrastructure, health care, education initiatives.

I do not feel it is correct though to say his spending is the cause of our collapse, likely to happen as you mention or at least a lot of dollars to be printed to pay off foreign debt, , but he inherited 11 trillion in debt and basically a depression economy with no chance of achieving anything without massive spending.

Saw his picture in a paper this morning and noticed, he has aged a lot in this job already, don't know how many people would like to have it at the moment or would know how to do it better.

Cheers

As a Reagan Conservative, what should I do to prepare for the collapse of the USA?

Survival gear, guns, ammo, bomb shelter, escape plans??

I like silver. Gold too. Both are scary and manipulated: Slammed by heavy shorting on Comex. The central bankers, and other powers that be, do not want to see $2000.00 gold. They will do whatever they can to stop that from happening. So precious metals are risky even when they seem like a no brainer. But I like them. I like silver more because it can still do well if the economy rebounds for real. It doesn't require a doom and gloom scenario to bust out like gold does.

That and of course, end the fed. Ron Paul's Federal Reserve Transparency Act - HR1207 seems to be getting some momentum:

http://www.youtube.com/watch?v=7PC9fkLMZmo

I still cannot believe that cartel (The Federal Reserve) can cut deals with international bankers, control our money supply, and yet the U.S congress is restricted (by law) from looking at the books.

It really started back with LBJ and the great society.

Mr Voelker really left a mark

Then Alan Greenspan left his legacy.

People want to blame the politicians, they really do not control as much of the economy as you think.

I like watching the Obama supporters blame bush for the spending. Well that would really be congresses fault. They have control of the purse strings not the president.