Waiting for the other shoe to drop

Discussion in 'Economy' started by editec, Apr 7, 2011.

  1. editec
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    editec Mr. Forgot-it-All

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    I think it's about to (or is already dropping and at an increasing velocity)

    The first shoe dropped in 2008.

    That did much to wipe out the economic solvency of the middle and upper middle classs. And they CAN NOT pull us out of this economy because they are BROKE.

    In order to keep the banking system from melting down our government (and others too) took on enormous debts which has given us something like a hiatus from disaster for the last couple years. That I think we can all agree on, right?

    But consider what's happening right now...

    The prices of commodities are spiking like crazy (Silver nearly $40? It was $7 five years ago and the last $20 increase or so was in the last few months).

    The price of oil is directly effecting the quality of life (hence the economy, too) of most Americans. This is happening very quickly, much like it did preceding the 2008 meltdown

    There appears to be a movement from other nations to migrate off the USD as the international currency of exchange. They're not openly saying that, but their governments seem to be investing heavily in non USD specie including metals. I think something's afoot there, folks, I really do.

    IF the USD falls, the governments ability to stabilize the economy and placate the people by borrowing from abroad to help us purchase imports is nuetralized.

    So what is the government likely to do? Certainly they'll cut back on spending for domestic issues.

    People, something like 43 million Americans are already on food stamps, and they depend on those to eat. Plus millions of families need heating assistance, too. Obviously they will be the first people affected, but what happens when one out of every 7 Americans is hungry and cold? Contrary to what most of you hope not all of them will go gently into the night.

    And what happens to American industry and farming (that borrows as normal part of doing business ) has to pay huge interest rates because the USD is not longer a safe currency? How will THAT effect the economies of those still working? (We're already seeing effects from the Japan diasters. Now imagine the same kinds of slowdowns in every industry)

    I think we're about to see that other economic shoe drop, folks. In fact I think its dropping but hasn't hit the floor (or the consciousness of most Americans...yet).

    Unless something is happening behind the scenes that I am not aware of, I cannot see how USD going to get out what I suspect is becoming an inflationary spiral.

    I think we've hit some kind of economic tipping point, folks.

    Expect stagflation on a scale we have never seen.

    Prices will rise, but salaries (for enough Americans who still have jobs) won't come anywhere near enough for those debtors to take advantage of it.

    Hey, I hope I am being an alarmist, I truly do.

    But I do not think I am over reacting, folks.
     
  2. RetiredGySgt
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    RetiredGySgt Platinum Member

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    And meanwhile the Democrats refuse to cut spending. Go figure.
     
  3. ekrem
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    ekrem VIP Member

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    It will be like in other countries which witness similar problems.
    Increased social frictions, 'me' vs 'other' feelings and a lot of violence from people who passed the point where they have nothing to loose anymore.

    Alliebaba would bomb the next mosque, what holds her back is her commitments within a functional life and a working economy which pays paychecks every month.
     
  4. editec
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    editec Mr. Forgot-it-All

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    Won't matter, RGS.

    All that so calle cutting is just so much rearraging of the deck chairs on the Titanic.

    The real causes of the problems harken back to 40 years of stupid trade and tax policies AND spending, too.

    You cannot fix this problem MERELY by cutting spending.
     
  5. sparky
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    sparky VIP Member

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    yeah we're seng the exact scenario played out, we're just not smart enough to realize what comes around goes around.

    every country you see protesting on CNN is doing so because of economic implications, allbeit the carnard of democracy is often misused and misrepresented as their goal.

    and if that isn't convincing enough, all one needs do is ring up the IMF history of having to step into all these 3rd world sh*tholeistans that are in debt, and top heavy. The dynamics of economics don't change with any given mode of governance folks

    one could easily copy/ paste the economic trajectory to America's economic situation, or reduce it to the simplicity of loan sharks shutting you down because you've blown your load gambling

    simpler yet, the problem is not left or right, it's up & down

    and guess what? if the USD tanks, the 'ups' who have no allegiance to it , will be riding off into a valuation sunset they've sucked outta all the 'downs' pockets


    but hey, all you believers in casino capitalism can vote in Trump & prove me wrong....
     
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  6. editec
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    editec Mr. Forgot-it-All

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    Not sure how it will play out. Depends, I suppose on how the crash happens..how quickly it truly effects people.

    Anarchy might occur in some places (hell there's some places in thye USA that have basically been in a state of anarchy for decades now) and fascism in others.

    The thing about periods of real social anarchy is like they're like a raging fire that burns itself out.

    And what typically follows that fairly brief period of anarchy isn't exactly the American Dream, either.
     
    Last edited: Apr 7, 2011
  7. Article 15
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    Article 15 Dr. House slayer

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    What a shock, RGS injecting his partisan politics :rolleyes:
     
  8. sparky
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    sparky VIP Member

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    i would interject plays out vs. or being played Editec>

    (enlarged and emboldened for the benifit of the economic challenged)

    Local is Global: "Shrink, Shift and Shaft"
    We have observed a growing trend in modern "free" market systems that aims to institutionalize the financial interests of a wealthy minority at the expense of the needs of the impoverished majority. Nationally, this is accomplished through a strategy we call "shrink, shift and shaft":

    •shrink public sector services and the power of democratic institutions and organized labor;

    •shift the tax burden from the wealthy (owners and investors) to the worker;

    •shaft those left behind by eliminating good paying jobs and eroding the social safety net.
    The "shrink, shift and shaft" strategy relies on our government's ability to gain and maintain access to cheap labor markets and natural resources. Such tactics not only pit US workers and communities against each other and against those of other countries in a brutal race to the bottom; they also repress resistance against economic and ecological exploitation.


    This economic model, often called neoliberalism, has yielded injustice, suffering, unemployment and a state of constant insecurity for the vast majority of the world's population
    .


    Global Economic Justice | United for a Fair Economy
     
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  9. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Ya cause I am wrong, RIGHT? We need to cut the budget in half and the Dems won't even agree to 60 billion. By the way... who DID NOT bother to pass a budget LAST year as required by law?
     
  10. Article 15
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    Article 15 Dr. House slayer

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    Correct, your claim that the Democrats refuse to cut spending is wrong but I was talking about how you always find a way to whine about the Democrats.

    Face it, dude, you are more of a partisan than the liberals you cry about all day.
     
    Last edited: Apr 7, 2011

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