[Luvianka]

Some time ago I recommended you Ellen Hodgson Brown's 'The Web of Debt'. An excellent book about how economy really works. Well, this article from her blog is just excellent, and tells volumes about all the shit we hear from economic 'experts' in MSM:
http://webofdebt.wordpress.com/2013/02/2...-it-hasnt/

[WestIndianArchie]

good read.

I recommend Naked Capitalism as well.

WIA

[johnwu]

Ben Bernanke, the current Chairman of the Federal Reserve, wrote his thesis paper on the Great Depression. It is a decent paper and gives you great insight into the Great Depression.
http://journals.cambridge.org/action/dis...&aid=79783
http://press.princeton.edu/chapters/s6817.html

There are three main arguments on what is going on with the Fed actions.

1. Their incompetency is a result of what happens when you have big government with this much control over the entire population. They don't really know what they are doing they are just doing things. Many economic professors have professed this view.

2. They know what is wrong with the system, but no one wants to be the one to tip the ship. (2008 was nothing compared to the coming global economic storm) Thus their only option is to print and pray.

3. They know what is wrong with the system, and we are in the middle of an intense global currency war.


If the US plays their cards right, we actually might end up relatively better compared to what will happen to everyone else.
The entire world is under unprecedented levels of public and private debt ever during peace time.
The only times we have anywhere close to these levels of debt is during war time.

Typically to the winner would go the spoils, and to the loser economic misery.
However we are not in engaged in any large official war, not yet.
The fact is that we are in a place that no one has a road map for, and while everyone has some idea of what should be done, the fact is that no one knows if anything which method will actually work, we've never been here before.

The whole situation is much more complex than you could ever imagine, no solution is black and white. Even most finance PhD's don't have a clue what is going on.

[Greek kamaki]

It is a war between Germanics and the Anglosaxon world.Both parts play their cards masterfully in a tit for tat while the Chinese observe carefully to enter the game.

[johnwu]

(03-04-2013 04:42 PM)Greek kamaki Wrote:  

It is a war between Germanics and the Anglosaxon world.Both parts play their cards masterfully in a tit for tat while the Chinese observe carefully to enter the game.

The USA looks to be the best positioned. We have recapped our banks. While our unemployment situation isn't good, we have the majority of all the gold in the world inside our boarders, we are currently the global reserve currency, we have been using up everyone else's resources when ours remain in variety and plentiful, and we have the most effective navy in the world. There are many problems with the USA, but we have played our cards quite masterfully.

The UK and Europe both have not recapped their banks. Unemployment rates continue to rise in Europe. There will be a separation in the EU, the question simply is will it be Germany who leaves, or force everyone else to leave. Germany is willing to foot the bill for now, but the time is coming where they will say nien. The average German person does not want to be supporting some Spaniard. This rising stress in the social fabric of Europe is also reflected in European bonds. The US is actually still giving swap lines and extending all sorts of financial assistance to the EU, for now.

As for the "observant" Chinese, they are knee deep in the game whether they like it or not, and don't have that many moves.
I do plan on doing significant business in China, but not anywhere in the near term, sometime after the coming hardship.
China has huge amounts of local debt in every city and every province, all of which is not transparent. No one knows what the debt levels are in China, but I wouldn't feel comfortable with owning assets in China right now. With rising food prices, and food prices will keep rising as everyone continues to print money, it is only a matter of time before we start hearing of the Chinese Spring.
The PBOC doesn't have the option to ease, they are busy combating the rising inflation that has been exported to them. Every well connected person I know from China has said their family is, or already has, transferred most of their wealth out of the country.

We live in interesting times.

[Greek kamaki]

I don't think the US is so much better positioned than the Germans.They have printed too many dollars.Although there is supposed to be an inflation trap some of the devaluation can be real.There is also too much bluff played on by both sides.The point is who will retreat at the end or whether we are going to see a compromise because the stakes are rather high.

Basically in this game the winner is the one who collapses last.

[Deepdiver]

(03-04-2013 05:19 PM)Greek kamaki Wrote:  

I don't think the US is so much better positioned than the Germans.They have printed too many dollars.Although there is supposed to be an inflation trap some of the devaluation can be real.There is also too much bluff played on by both sides.The point is who will retreat at the end or whether we are going to see a compromise because the stakes are rather high.

Basically in this game the winner is the one who collapses last.

The USA is Monetarily Sovereign the EU is not... The Fed knows this, Obama knows this and yet the EU is chasing windmills with horrendous bouts of austerity that just destroy EU economies and nations - rather than address their core issues which is the EU needs to become truly Monetarily Sovereign.

http://neweconomicperspectives.org/2011/...oland.html

The USA and EU have entered talks to create an EUNAFTA fully integrated trading block. Unlike NAFTA where the US opened with two much smaller economies Canada and Mexico where they gained much more than the USA the EU27 exceeds 500 Million Souls and the USA is ontrack to be 500 Million by 2050 - an integration of two like size equals that combines the most advanced hueristics R&D learning systems in the history of the Planet - a true technology driven powerhouse of 1 Billion + Tech Savvy consumers would emerge that could create World Standards that would achive even greater economies of scale and tremendous opportunties to lead the rest of the world in advanced medical devices, biomedical advances and technology breakthroughs. The USA would have to become more Human friendly (No More Walmart heirs accumulating $25B plus net worth each while refusing to pay minimium livable wages to the people who stock their shelves which is why their shelves are empty - oh yeah they fired all of their full time 40 hours a week workers with benefits to rehire 30 hour part timers withOUT benefits so they can increase their shareholdings to $50 Billion each. Incredible greed and hate for their workers/customers who create their wealth and time for WalMart to face real Euro union organizing as their Plantation Slave Economic outsourced Chinese slave labor factories business model would never be tolerated in Europe.

http://mythfighter.com/2013/03/19/wed-be...ke-greece/

It is said in Europe that Governments are afraid of the People (Evidence the mini Guillotines souvenirs to remind the political elites every Bastille day) and in the USA the People are afraid of our swatted up Federal State and Local governments with an IRS and DHS/TSA run amok society where IRS identity theft runs rampant with $5 Billion a year in fraudulent Tax returns paid out and they do NOTHING effective to enforce identity verification - a proven technology used by every credit card issuer.

So likely the USA and EU become a diversified Silicon Valley and MassBiotech rally across the USA and EU - and - the EU will have to adopt Modern Monetarily Sovereign Currency systems vis a vis USA Canada and even Mexico.

North America will have to adopt programs far less slanted to the top 0.001% Forbes 400 - now all Billionaires+ - at the expense of 1 Billion Tech Savvy Democratic People. Really the only solution to being overwhelmed by the BRICS Cheap Labor with Russia and South Africa surplus resources power bloc emerging as the G8 Alternative.

Plus when the EU and NAFTA (Not to mention NATOFTA combined Military Industrial Strength) Standardize on a Monetarily Sovereign World Reserve Currency (AMEROs) it will be hard for the BRICS bloc to knock it out of its reserve status.

Why - it will be the reserve currency of their largest export Markets!!!

And instead of focusing in on continued absurd ECB IMF World Bank 3rd world style austerity the NATOFTA countries can focus back on mass innovation and prosperity once again.

See New Amero coins will likely read Union of Europe and North America:

[iknowexactly]

I can't believe people are talking about economy without doom saying.

Say you were alive in 1500, there would have been a ton of doom-sayers then, there always are.

Tell them that there will be hot water for every apartment and home, refrigerators, and carts without horses that go 100 miles an hour, and carts that fly and go 600 miles an hour, and even laborers in Europe could afford all of those with owning a car or flying being the only one with seriously limited use.

That would be a huge improvement in life.

[WestCoast]

At the end of the day the whole "dollars euros yen" whatever is meaningless.

Geopolitical wars are always about power.

If there is hyper inflation, stick your cash in food/shelter securities.

With that said, if you're another one of these economists/prophets/doomsaysers... Well the only thing that's going to end is your life in the future so if you want to spend you're time spinning your wheels about the "global economy" have at it.

[Vitriol]

Here's a picture of the author:



Would you guys hit it?