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September 21, 2008 – Comments (14) | RELATED TICKERS: GLD , SKF , UDN

I think we are entering a new era. Most Americans have no idea what is going on and how this will play out. I think it is extremely important that you take the time to prepare, for what is coming in the future. The cracks in the Empire are showing and you need to make a plans in that reguard. Englands loss of the reserve currency is the most likely similiarity to what are future holds. Commanding Heights from PBS, available on line for free to watch, has a good review of this film.

Videos worth your time: 

Bill Moyers sits down with former Nixon White House strategist and political and economic critic Kevin Phillips, whose latest book BAD MONEY: RECKLESS FINANCE, FAILED POLITICS, AND THE GLOBAL CRISIS OF AMERICAN CAPITALISM explores the role that the crumbling financial sector played in the now-fragile American economy. 

Quote from Kevin Philips on 19 Sep 08:

"Alan Greenspan has finally decided to admit, you know, this may be one of those once-a-century biggies. Well, what makes it fascinating is that I sometimes use the description "seven sharks." There are seven sharks in the tank with the economy.

"And the first is financialization because we're so dependent on this industry that's sort of half lost its marbles.

The second is that you have this huge buildup of debt, absolutely unprecedented anywhere in the world.

The third is you've now got home prices collapsing.

The fourth is you've got global commodity inflation building up.

The fifth is you've got flawed and deceptive government economics statistics.

The sixth is that you've got what they call peak oil where the world is, to some extent, running out of oil. So it's not just commodity inflation, it's a shortage of oil.

And then the last thing is the collapsing dollar. Now, whenever you get this sort of package in one decade, you got a big one. And when Greenspan says it's a once a century, I think it's another variation but on a par with the Thirties."

The video is here:

http://www.pbs.org/moyers/journal/09192008/watch2.html

Tehran News? Seriously, take a look at what they are watching. Do you think this is more candid and accurate then what the US corperate media is stating:

Hank Paulson Has Become Col. Kurtz

 

Ron Paul On the Banker Bailout

 

US heading for Depression?

 

Reshaping Wall Street - P5

 

Peter Schiff & Steven Keen on Dateline - Part 1/2

 

Peter Schiff & Steven Keen on Dateline - Part 2/2

 

14 Comments – Post Your Own

#1) On September 21, 2008 at 6:37 PM, abitare (78.91) wrote:

Abandoned homes and construction Projects

 

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#2) On September 21, 2008 at 7:19 PM, abitare (78.91) wrote:

Ron Paul on Glenn Beck 18 Sep 08

 

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#3) On September 21, 2008 at 8:21 PM, abitare (78.91) wrote:

FYI - Post from Vox Day:

For the benefit of banks Just in case you were wondering if the government was actually more concerned about American citizens or its banker friends around the world:

In a change from the original proposal sent to Capitol Hill, foreign-based banks with big U.S. operations could qualify for the Treasury Department’s mortgage bailout, according to the fine print of an administration statement Saturday night. The theory, according to a participant in the negotiations, is that if the goal is to solve a liquidity crisis, it makes no sense to exclude banks that do a lot of lending in the United States. Treasury Secretary Henry Paulson confirmed the change on ABC's "This Week," telling George Stephanopoulos, calling the coverage of foreign-based banks "a distinction without a difference to the American people."

The financial community didn't want to take its medicine back in 1999, so they put it off. Now they're facing amputation, so they're putting it off again. In the long run, they're dead, of course, the problem is that each purchase of time to benefit the financial elite costs the American people dearly.

None of this is actually necessary. It's only necessary in order to preserve the Federal Reserve's failing monopoly over US money. Back when there were hundreds of competing bank currencies, a bank failure meant that those who held its currency suffered. Now that there's a government-granted monopoly, a failure means that everyone will suffer. The fact that centralized money operates no better than centralized anything else should not surprise anyone capable of understanding the supply-demand curve.

UPDATE - Even the Washington Post recognizes that this preemptive bailout scheme is an insane idea likely to cause more problems than it solves:"With truly extraordinary speed, opinion has swung behind the radical idea that the government should commit hundreds of billions in taxpayer money to purchasing dud loans from banks that aren't actually insolvent. As recently as a week ago, no public official had even mentioned this option. Now the Treasury, the Fed and congressional leaders are promising its enactment within days. The scheme has gone from invisibility to inevitability in the blink of an eye. This is extremely dangerous."

UPDATE II - As you'd expect, Ron Paul is one of the few politicians who actually understands what's going on and what should be done:

What's your take on this huge financial bailout?

"It's more of the same. More debt and more inflation and more pressure on the dollar. Ultimately, although the markets are responding very favorably at the moment, I think it is going to be devastating to the dollar and to our financial situation in this country."

So instead of having taxpayers buy the bad debt, the market should take care of it by itself?

"Sure, prices need to go down. Bad debt needs to be eliminated. The taxpayer ought to be protected. Taxes ought to be lowered...We are following the same routine that we did in the Depression, and that is artificially try to keep prices up. People were starving in the Depression and the only thing they did was try to keep wages artificially high and keep food prices high. We are doing the same thing now—we are trying to keep housing prices high. Low prices for houses mean poor people could buy a house. This is the most important part of a free market economy and that is free market pricing. Without free market pricing, the market can't work. And this is in a way a major effort to price fix."

They can fight economic gravity as hard as they want. But in the end, the plane is eventually going to run out of fuel and the landing will be a lot harder as a result. I don't have much sympathy for a country who rejected the chance to have Ron Paul at the helm and favored the likes of McCain and Obama.

 

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#4) On September 21, 2008 at 9:53 PM, lquadland10 (< 20) wrote:

Yep Arer, You are right. It is a brilliant plan. The ones who are telling us how this will happen are the very ones who set this all up. It is brilliant. Take The Rogers line. In one of his statements he said that in the 1800's? they went to England then in the start of the 1900 they came here to the usa. then in the 2000 he went to china and his girls will grow up in china he loves china. The family line lives on. IT is the plan that worked. The finacial art of war in my thoughts. Quite brillant.

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#5) On September 21, 2008 at 11:26 PM, Lordrobot (91.13) wrote:

A lot of people don't know this except for Ron Paul and maybe Obama but when BigFoot's body was found a couple of months ago by the Georgia hunters, clutched in Big's right hand were his Washington Mutual Stock Certificates. So I think BigFoot saw this coming and just chomped down on some poison berries. My only hope is that the Lock ness monster didn't own any HBOS or that backstroke may be a belly up.

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#6) On September 21, 2008 at 11:26 PM, Lordrobot (91.13) wrote:

A lot of people don't know this except for Ron Paul and maybe Obama but when BigFoot's body was found a couple of months ago by the Georgia hunters, clutched in Big's right hand were his Washington Mutual Stock Certificates. So I think BigFoot saw this coming and just chomped down on some poison berries. My only hope is that the Lock ness monster didn't own any HBOS or that backstroke may be a belly up.

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#7) On September 21, 2008 at 11:32 PM, abitare (78.91) wrote:

9/21/2008 Ron Paul on the Late Edition with Wolf Blitzer

 

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#8) On September 21, 2008 at 11:45 PM, abitare (78.91) wrote:

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#9) On September 22, 2008 at 9:50 AM, XMFSinchiruna (27.03) wrote:

Excellent post Ares... thank you!  This kind of collating of the enormous barrage of information in circulation right now is an incredible tool for the average investor trying to keep up with the pace of developments. Great stuff. Ron Paul, Peter Schiff, etc. are so spot-on!

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#10) On September 22, 2008 at 7:22 PM, pjani06 (29.21) wrote:

Hah, Ares as always enjoy your posts.

Thanks for posing the questions & updating us on where we may be going forward.  I've enjoyed following you and today, I was brought out of apathy to post my first blog post - hitting on the financial system crisis.  check it, think about it, & discuss/circulate the ideas.

Here's the link:

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=89802&t=01005302674505139157

Thanks. 

 

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#11) On September 22, 2008 at 8:13 PM, Tastylunch (29.30) wrote:

Dang dude nice day today. Bad for the world good for us who know what's going on I guess (somehow it feels hollow to me to be right about this)

on a side note what is it with people named "lord" on this site? Maybe I should create a a "LordTasty" account where I can pontificate crazy thoughts. :-)

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#12) On September 22, 2008 at 10:36 PM, Harold71 (22.12) wrote:

I for one take great comfort in the fact that it was real people selling financial stocks today.

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#13) On September 23, 2008 at 12:49 AM, FleaBagger (28.28) wrote:

Because Tehran is completely objective and has no reason to lie or exaggerate, right? Don't get me wrong, I recognize that our government's policies are about as wrong as they come, but getting a lesson on how bad it is to live in America from an Iranian news program is kind of reminiscent of those Soviet propaganda videos about American poverty.

Disclosure: I haven't watched the whole thing yet, because it's loading at about 1 second per minute.

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#14) On September 24, 2008 at 12:12 AM, TheGarcipian (35.58) wrote:

Ares, I saw the Kevin Phillips interview. Since it was a late viewing after a long day's work, I was starting to nod off in that "drugged sleep" sort of way, when suddenly his words not only woke me up, but caused me to completely pay attention at full alert. It was a good interview. I highly encourage others to watch it. As you'd pointed out above, the video is here.

My educated guess is that the DJIA will fall to 8500-9200. Don't know much about gold, except that I don't own enough of it.

Cheers,
--Gar

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