DEBTS DRACONIAN EFFECTS

Discussion in 'Financial Cents' started by overbore, Aug 5, 2011.


  1. overbore

    overbore Monkey++

    Now that the down grade by S&P is known, let us look at what the unknowns are and we have the writings, circa 1773, of Edward Gibbon to illuminate our path. Former Governor Mark Sanford said tonight on Hannity that Gibbon did a 900 year look back at the economic effects of excessive sovereign debt that reached 100% of GDP including ancient Athens, Rome and other nations. His conclusion was that the nations that reached that economic point always, repeat ALWAYS had a failed currency resulting in massive revaluations of wealth. Got your attention now???

    The numbers stated by Sanford were that if you had 100,000,000 dollars of wealth before devaluation, you would wind up with 20,000 dollars of purchasing power. More to our level, it works out that if we have $100,000 before devaluation we will only have 20 dollars of purchasing power left after devaluation.

    He went on to state that the Wiemar Republic and Argentina are but two more recent examples of the validity of Gibbon's study and the truth thereto. I experienced this in Argentina myself where the currency paper had three zeros attached but it bought less and less. Zimbabwe of today also comes to mind---.

    I suggest serious considerations be given to alternate stores of value starting with Faith being our #1 store of lasting value.

    Laus Deo
    overbore
     
  2. chelloveck

    chelloveck Diabolus Causidicus

    Oh ye of little faith

    I went to the bank the other day, and asked the bank teller to cash in my #1 store of value, Faith...and she looked at me like I was some kind of crazy man, which indeed I perhaps was....I mean to say...an atheist and skeptic doesn't hold much by the way of stocks of faith anyway. They did offer to extend my credit limit though...which suggests that the stocks of the bank's faith in me are almost inexhaustible... : O
     
    BTPost likes this.
  3. IceNiner

    IceNiner Monkey+

    I'm expecting at least a burst of panic buying on Monday now that the S&P have downgraded the US and a lot of the Wall Street sheeple traders will go haywire. Its probably a good idea for everyone to fill up on gas and grab some other supplies before trading starts up on Monday the 8th.
     
  4. Falcon15

    Falcon15 Falco Peregrinus

    My prediction of the next week:
    Monday - Will be a "Black Monday"
    Tuesday - The dollar will begin it's final spiral downwards
    Wednesday - Market closed for an "emergency holiday" because European markets are crashing
    Thursday - Foreign markets (mostly Asia) pummel the snot out of US Dollar - European markets tank. Bernake's response? The Fed buys a boat load more Treasury Bonds and inject more and more liquidity into the already dying market - the first stages of Hyperinflation...
    Friday - all out crash of the Dow, S&P, & NASDAQ. The BRICs - Brazil, Russia, India, & China all sit back and decide how to divvy the economic power base they inherit.

    Just an opinion, I am probably off somewhere. I am just saying the way things are shaking out, and based on historical market behaviors...this will NOT pan out well.
    As with anything YMMV.
    Got preps?
     
  5. CraftyMofo

    CraftyMofo Monkey+++

    Should be interesting to see what will happen with the Euro...I'll have some popcorn ready.
     
  6. Falcon15

    Falcon15 Falco Peregrinus

    After Germany told Italy to go pound sand...Euro probably will not last a week, especially considering that the Asians are saying to the Europeans: If your own central banks are not buying your bonds, why should we? I too have mucho popage and will be taking the weekend to finalize some preps and dependent on Monday's action, possibly take my wife and kids out for one last wicked good meal.
     
  7. Cephus

    Cephus Monkey+++ Founding Member


    The wife and I did that today.
    Don't think you're far wrong at all.
    Also picked up a few more things along the way.[shtf]
     
    overbore likes this.
  8. chelloveck

    chelloveck Diabolus Causidicus

    Don't eat it!!!

    The popcorn will be worth more than the currency that you bought it with! : O
     
  9. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Went to the bank today. Pulled out FRNS that weren't already spoken for bought fuel and ammo.

    I 'liked' Falc's post but i wish there was a 'Man I hope your wrong' option for the proposed schedule for the week.
     
  10. Falcon15

    Falcon15 Falco Peregrinus

    Visu, I pray I am wrong. However, I am not basing this off of my own conjecture, it is a compilation of information from some of the finest, most reliable, NON Main Stream Media sources. Heck, even Peter Schiff was on Lou Dobbs show on Fox trying to warn folks.
     
    BAT1, Cephus and overbore like this.
  11. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Yeah, I'm not shooting the messenger. I'm seeing the same things. Local media though is all 'look at this murder, this good deed, traffic, happy happy, blood, blood' nary a word about what is comin'
     
  12. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    We have quite enough of "journalists" reporting on incorrect, inaccurate (and useless) info. Even better will be if they don't start trying to forecast anything more than tomorrow's weather. If they will report the tea leaves accurately, we can read them for ourselves.

    That said, this is a real mess.
     
  13. overbore

    overbore Monkey++

    HOLD TO YOUR CONCEPTS---

    UNTIL YOU DIE AS DIE YOU MUST
    BUT THEN YOU ARE GOING TO BE JUDGED.

    I CARE NOT WHAT YOU BELIEVE OR DON'T; DON'T BELIEVE IN THE LAW OF GRAVITY?? WHY NOT JUMP OFF A BUILDING AND LOOSE YOUR LIFE??? GRAVITY IS ONLY A THEORY, ISN'T IT? IF IT IS A UNIVERSAL LAW, SO IS CREATION AND THE CREATOR; BEWARE.

    IF NO ONE EVER TOLD YOU, YOU ARE A SPIRIT THAT LIVES IN A BODY WHO HAS A SOUL. THAT SPIRIT RETURNS TO ITS CREATOR WHEN THE BODY DIES-- BELIEVE IT OR NOT. IT IS HIS LAW.

    Laus Deo
    overbore
     
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