Real ecomonists are now talking about the impending "S" to hit the fan

[TiminMishawaka]

And the "S" is stagflation. This is rising prices with falling wages. This is the first I've ever heard of real economists during my lifetime talk about this happening. My father and grandfather told me about it from Carter's days though.

This isn't a joke and takes a long time and a lot of pain to fix.

I'm not buying another gun until I have at least another year's supply of canned food in an undisclosed location. A year's supply of canned food, when bought right, can cost less than another high end gun.

Time to prioritize.

 

[6birds]

And the "S" is stagflation. This is rising prices with falling wages.

Time to prioritize.

w talking about the impending "S" to hit the fan

What are the fake Economists saying?

 

[longbow]

The big shots are saying Depression around my work areas

 

[TiminMishawaka]

Gotta dig for it. AP reported a jump in wholesale food and energy prices while the Bureau of Labor reported a jump in new unemployment claims. We're not talking about speculation. This is a historical pattern that has the same effect every time.

 

[evansvillethompsongunner]

A recession which lasts for more than two quarters is, officially, a depression.

The news outlets are just under a LOT of pressure from the Weiss Haus not to call it that.

Minimum of 10% unemployment, with true estimates ranging up to 18-19%?

I call that a Depression with a capital 'D'.

 

[6birds]

"We're not talking about speculation."

Actually, you are.

Energy prices go up in colder weather, check your calender.

 

[smokingman]

"We're not talking about speculation."

Actually, you are.

Energy prices go up in colder weather, check your calender.

You do not understand basic economics.[ame="http://www.youtube.com/watch?v=dlHBYQrCnIk"]YouTube - Fox News Hyperinflation M1 M2 M3 Money Supply Debt Soup Lines Glenn Beck Weimar Germany[/ame]

You can not more double the money supply and not have inflation.Watch the dollar index.When there is a short term flight to safety the dollar gains value,and stocks go down(same dollar has more buying power).The long term trend is much different.As the dollar loses value the same stock is worth MORE dollars,so the DOW goes up.Every single day the DOW goes up makes me worry.You can not have double digit unemployment,a huge increase in money supply,and commodities sky rocketing and expect something to not give.We are standing on the edge of a complete breakdown of our monetary system.There is only so long things can deteriorate at a slower rate and still be seen as good news.It cracks me up when I hear the media say things like "The good news is we only lost 200k jobs this month,an improvement over last month". The true unemployment rate is somewhere around 18-22%.And they rewrote the rules on how GDP is determined last year.If they had not we would have shown a loss.Housing prices fell 12% on average last year and are expected to fall another 8-10% this year.The main(not only)reason energy prices are up is the falling dollar(again watch the index...dollar gains one day,energy goes down...dollar falls and energy goes up).The Federal reserve bought more US 30 year bonds than the market at the last auction(it would be like your wife borrowing money to give you,but she borrowed it from you and then charged you interest twice).Something has to give shortly.One failed auction(that the fed does not bail out)or mass selling of US debt and the "game" is over.

On another note...the year supply of canned goods is a great idea.I would shoot for at least 2 though


Debt chart

Dollars in circulation.

 

[patton487]

wow, that video tells a story. Has anyone noticed how some of the big jewelery stores around have started advertising to " bring in all your gold, we will pay yo u top dollar" ?

I know there has always been the ones on TV. But I have not heard of the large local jewelers doing this, usually they only advertise their diamond rings and such. I think they understand that the price of gold is going to continue to go through the roof.

I buy silver rounds at my local coin shop. Normally they get in a couple of dozen 1 oz silver rounds a week. They have had nothing the last 2 weeks. No sellers, only buyers.

If our government doesn't change our spending policies soon I believe inflation could go crazy and our paper dollars won't be worth much.

 

[djl02]

I consider myself a real economist. if you didnt see this coming back when gas first started going up, you had to be blind. Its gonna be hard to get over this because the media wont let it die, if you know what I mean.

 

[jmiller676]

Imagine that. With all the bailouts we have passed how could you not have seen this coming. Just intereseted how that will affect the debt that our Fed Reserve holds of it's own debt...China and Japan shouldn't be out on the back burners either.

 

[Bisley Man]

And the "S" is stagflation. This is rising prices with falling wages. This is the first I've ever heard of real economists during my lifetime talk about this happening. My father and grandfather told me about it from Carter's days though.

This isn't a joke and takes a long time and a lot of pain to fix.

I'm not buying another gun until I have at least another year's supply of canned food in an undisclosed location. A year's supply of canned food, when bought right, can cost less than another high end gun.

Time to prioritize.

 

[rlspach]

Right now the prevailing trend is deflationary.

Yes, a ton of money has been pumped into the system, but it isn't being released into the economy because the banks are sitting on it. They're sitting on it, because they do not have sufficient reserves to cover the bad debts (RE,CRE) on their books. This is actually frustrating the crap out of the administration because they want that money released and they want the resulting inflation to combat the deflationary effects of everyone hunkering down and not spending. That's why all the whining about banks not lending. Of course they enabled the whole mess by letting those banks zombie by changing the FASB rules and allowing them to hide their non-performing assets.

Do we need to worry about hyperinflation? Well, only if the economy takes off and we're unable to pull that money back out fast enough. That's not today. There's about a dozen triggers that could destabilize the system again and continue our plunge into depression. Frankly, absent stimulus effects, there would be no GDP growth even now (assuming you even believe those numbers).

Hyperinflation could be a worry but not for a few years yet. The current political pressure is for the government to stop spending/printing is more likely to put a lid on that scenario. That said, there's a lot of folks who don't believe the Fed has the capability to pull that money back out fast enough if by some chance the economy does take off.

Stagflation is probably the best possible scenario given the mess we've gotten ourselves into. My guess though is something will get triggered like an Iran event or major crash in Europe, Japan or China and send us back on the path to depression first.

 

[miguel]

wow, that video tells a story. Has anyone noticed how some of the big jewelery stores around have started advertising to " bring in all your gold, we will pay yo u top dollar" ?

I know there has always been the ones on TV. But I have not heard of the large local jewelers doing this, usually they only advertise their diamond rings and such. I think they understand that the price of gold is going to continue to go through the roof.

I buy silver rounds at my local coin shop. Normally they get in a couple of dozen 1 oz silver rounds a week. They have had nothing the last 2 weeks. No sellers, only buyers.

If our government doesn't change our spending policies soon I believe inflation could go crazy and our paper dollars won't be worth much.

Just this afternoon, there was a dude with a "sandwich board" sign on that said, "We pay 30% more for gold and jewelry!" -- not sure if it was Smith's on the square or what, but I've never seen that in town before.

 

[jmiller676]

I invest in precious metals; Brass, Copper, Lead.

 

[Cpt Caveman]

Ballistic Wampum! Good to have on hand.
The economy is sliding. My wife has noticed that $230 a week doesn't get the same amount of groceries as a couple months ago. Even my 8 year old son noticed there was less to carry in from the car when she got back from the store.
Don't let this keep you up tonight folks, just a little light reading...

IS OBAMA PLANNING TO SEIZE PRIVATE PENSION PLANS TO FINANCE DEFICIT? THE MILLSTONE DIARIES


Of course the whole thing could be a ruse to get folks to cash out their 401Ks so the gubment can get the 35-40% in tax you take on cashing out early.
I think if I had a 401 K I'd be getting what cash I could outta there. I don't think they are gonna settle for the 35%,they want it all. They need it all. Get it into some kind of a hard durable item. I don't care if its gold, silver, rifles,or farmland. Or pay off any high interest loans you have to make the coming economic hard times easier to deal with. Having a truck load of ball canning jars and lids is gonna be a whole lot better than a non existent IRA or worse yet one that the US gov't " guarantees ". You know what they did with the money in the ( in my best al gore-lee-oney voice)"lock box" for medicare right?
In case you didn't know...OUR GOVERNMENT IS COMPLETELY AND TOTALLY INSOLVENT!! If our government were a publicly traded company on the stock exchange they would have been banned some time ago. We cannot handle the interest payments on the debt we have now , even if we took ALL of the GDP and applied it to the interest we wouldnt't even put a dent in it. If you folks can't see our government is floundering and trying to use us a life preserver you are blind or at least severely distracted.They aren't gonna give up, they are gonna try and make it work as long as they can and when they see its done for they are gonna run out the back door with cash spilling from their pockets giggling like mad men because they got paid to steal from us.....
Has anyone seen anything the govt has done thats trying to address the deficit?
Wake the heck up.

12 Dr. Dooms shred 2010 investing optimism Paul B. Farrell - MarketWatch

[ame=http://www.youtube.com/watch?v=WuEfx6ZGRp4]YouTube - US Economic Collapse - Gerald Celente on Banking Regulations[/ame]

Don't be worried, be prepared.

 

[Fixer]

Stocking up on canned goods sounds like a good idea to me. when it does come crashing down and money is worthless. you better have a trade or goods worth bartering for. No one will want gold or silver either as payment if they can't do anything with it. If you can't eat it or produce energy with it, it probably wont be worth much.

 

[Andre46996]

All the canned food in the world is worthless without improving your skillset.

Can you successfully grow a garden large enough to feed your family and put back for winter?

Can you hunt?

Can you fish?

Animal Husbandry? (Not the type JClark likes I mean raising animals)

Do you have a means to heat your home if there is a disruption of services?

Become more self sufficient now and it won't hurt as much later.

Raise chickens... Meat and eggs
Grow a garden...
Get a REAL wood stove...
Have a couple years worth of firewood on hand(green wood is very inefficient)
Pastas store well and have a high calorie count.
Spices to flavor you LTS

It is not anything new, Go back to the way your grandparents lived. Have a stocked pantry, if you have to run to the corner to make dinner your screwed.

 

[6birds]

You do not understand basic economics.

And from you cute video, and the cool chart, you don't either.

 

[jclark]

Animal Husbandry? (Not the type JClark likes I mean raising animals)

Just because a fella likes Beavers.......

He's right, though.......doesn't matter how prepared you are. If you can't be self sufficient you're screwed.

 

[smokingman]

And from you cute video, and the cool chart, you don't either.

I may not understand everything.I will even admit that.Basics I do understand though.If I am wrong all my(and my families) preps,wealth preservation,and basic needs are still meet.If you are wrong can you say the same?