If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Read the community guidelines before posting ✨
Options
The Federal Reserve's rescue has failed
Former Member
Posts: 1,876,323 The Mix Honorary Guru
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/03/ccview103.xml
Get yourself a wheelbarrow, folks.
"There probably will be some bank failures," said Ben Bernanke
"I never thought I would see anything like this in my life," said James Steele, an HSBC economist in New York.
No sane mortal needs to know what term-auction means, except that it too became a tool of the US credit alchemists. Banks briefly used the market as laboratory for conjuring long-term loans at Alan Greenspan's giveaway short-term rates. It has come unstuck. Next in line is the $45trillion derivatives market for credit default swaps (CDS).
"For the first time since this Greek tragedy began, I am now really frightened." Ambrose Evans-Pritchard, International Business Editor
Get yourself a wheelbarrow, folks.
0
Comments
There isn't even an industrial manufacturing base of any size that can be tinkered with ...on a global scale.
This is truly unchartered waters especialy so as finance and production is taking place on a gloal scale elswhere ...never before has this happened.
Chaos is just around the corner and yes ...i do believe rioting in the streets is just around the corner in the USA ...on a scale where law and order will totaly break down.
I will say it again ...i predict that the USA will invade the South American continent full scale. Western Europe will move closer to Russia and the UK ...will be seriously alone.
Bad harvests this year on a major scale in any one of these countries could tip some nations ...rich nations ...into rationing.
But ...i will be accused of being a doom merchant ...i'm prepared to a better degree than most of you though.
You are though. The U.S. is not going to invade South America, don't be daft.
Explain whats daft about it please.
The nation states of the US, the UK and several european countries are broke. Flat, stony broke.
The banking systems, which rely on fractional reserve or basle 2 are insolvent. As most people know, the banks don't have everyones money for everyone who has deposited with them at all times. Now, too many people have withdrawn their cash and are leaving it out of the banking system and so the banks are broke. The cycle of cash that allows them to operate has stopped.*
However, unlike when a normal business goes broke, these businesses can go to the government, who will fire up the printing presses, resulting in enormous amounts of inflation, and worse (as Moroocan Roll mentions) foreign investors stop taking dollars and pounds as payment because they are reducing in value every day.
Whereas before our relatively strong currencies could buy food and energy overseas and import it, or in the Yanks case, just print dollars and get oil more or less for free, now the rest of the world is turning away from the dollar, pound et al and is moving to gold, silver and other hard assets.
It's a spiral either way. One way, all bills are technically paid, but the currency is toilet paper, the other way no bills get paid and all industry ceases.
It's unbelievably serious.
*A bank lends you £10,000, you spend it in Dave's shop, Dave puts it back in the bank that night for safekeeping. The bank lends the same £10,000 to someone else, who gives it to Harry, who puts it back into the bank the following night. The bank is now owed £20,000 + high interest and owes £20,000 + low interest. It can do this with no problems over and over again until one night the person who gets the £10,000 doesn't return it to the banks, and then the fraud is up because they cannot pay Dave, or Harry or anyone else.
Maybe it's less of a depression, and more the coming of the end of the golden age of oil, where everything was incredibly cheap - you could fly around the world on a shoe string budget, throw away products made from oil to be buried under the ground. Consumerism at it's worst.
I don't know though. I'm still sceptical about the doomsayers. I guess there were people who thought WW1 could never happen though. And shimmer, I understand the idea of banks lending money they don't have, but I don't think we're at the point of complete collapse. A market correction has been due for a long time. Until we see it pan out we don't know exactly what will happen, or how significant the effects will be. It's all guesswork.
0
_____________________________________________0__________________________________________________________________________________ [/COLOR]][/SIZE]How many cart horses have we got and how many will it tke to supply London with its needs? Food supply is in a very dangerous position at the moment as is water ...in America!
Check out this link and a million others about food supply ...
http://www.guardian.co.uk/world/2007/dec/04/china.business
On top of this ...every commodity you can think of is now in short supply ...steel copper water food ...bio fuel has already caused riots in Mexico ...pasta protest marches in Italy ...a bazillion other people are now outbidding the west for everything we need.
This is NOT ...just another recesion or depression ...it is unique ...the world has never been here before.
No one has a clue how to rebuild the American economy under these new conditions.
sorry about the colour editing ...it all went wrong!
Lol np
Even if it is the beginning of the end MR, what else can I do?
Heck, that's why they have so much rice in China, because they never had enough meat. It was used for flavour, and the rice was bulk to try and get nutrition into them. So personally I feel like we've got it pretty good, and even if things get pretty shit...
http://www.youtube.com/watch?v=mqC--LNwaIU
I got life! :razz:
The North American Union. The president himself has talked about the new world order
We need to become a lot more self-sufficient in energy e.t.c. before that happens though.
The crisis in Cameroon might have generated few headlines abroad, but the violence shows how soaring oil and food prices on global markets are threatening the patronage systems propping up some of Africa’s longest-serving leaders.
http://www.ft.com/cms/s/0/fbe9870a-e975-11dc-8365-0000779fd2ac.html
:shocking:
http://en.wikipedia.org/wiki/Amero
it wouldn't have to invade every country on the continent ...maybe three.
The rest would then have no choice but obey..
If that is ...the comiung presidential elections aren't stopped due to a terror attack either on AMERICAN SOIL ...OR AGAINST ITS WARSHIPS IN THE GULF ...THEN WE HAVE A DIFFERENT SCENArio altogether.
A false flag terrorist event is a big possibility cos i cannot see this lot giving up power easily or willingly seeing as they have declared war for a generation or a hundrd years even, and are the architects of the pnac agenda and the new world order ...which would require some kind of continuity.
Sounds crazy ...i agree.
And you still havent given any decent reason as to why they would invade South America.
If they jhave to retreat from the global scene ...what other options do they have for wealth creation?
Closing down the PNAC website means nothing ...the people behind it all have put years and dollars into their dream.
Nobodies power lasts forever, even the Republican party is turning their back on them, McCain is not a PNAC member, which is one of the reasons why he wasnt picked when Bush was.
He's as loopy as a fruitcake...
They've already started.
Seriously though, according to the video Rolly posted, China have just signed a 25 year oil agreement with Venezuela. I can't see America taking them on any time soon, when they would no doubt be backed up by the new superpower.
I can't see America taking them on any time soon, but it's nothing to do with china (which is little more than a regional power and arguably less so than Japan) and more to do with Chavez being all mouth and no trousers and the US being committed to two medium size conflicts already
Absolutely no country can afford to piss off China these days, their economic power is now above what it first appears. If they cut off cheap imports we would have rampant inflation overnight.
Don't they pretty much own significant amounts of the US debt, if so what happens if they demand their money back?
It would be a bit like nuclear war - you may wreck the other guy, but you're not going to be in any better shape yourself.