Use access key #2 to skip to page content.

alstry (35.03)

The worst EVER !!!!!!!!!

Recs

12

September 13, 2008 – Comments (3)

Up to 30 more airlines will go bankrupt before Christmas, the chief executive of British Airways warned yesterday, as the biggest rescue of stranded passengers in travel industry history began.

"We are in the worst trading environment the industry has ever seen", said Mr Walsh. "We have already seen 30 or so airlines go bust this year and it would be fair to expect a similar number of casualties worldwide over the next three to four months."

The head of British Airways calling for the Bankruptcy of 30 MORE airlines in just 3 or 4 months.  HOW BAD IS IT OUT THERE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Emergency banker meetings weekend after weekend.  Think about this for a second....how many TRILLIONS of dollars of private equity loans, condo loans, shopping center loans, land development loans, office loans, auto loans, credit card loans, residential mortgage loans, ect.......are now in default or going bad.

THIS IS NOT SIMPLY A SUBPRIME CRISIS...IT IS A SYSTEMATIC DEBT DEFAULT CRISIS

Our entire finanical system is breaking down and not a single candidate is addressing the issue.

DEBT is the assets of our banks and our banks are running out of assets backing our deposits.   The problem is that the deterioration doesn't rest with one class of assets....it is all classes of assets breaking down.  Do you think those 30 ADDITIONAL airlines about to go bankrupt owe the banks money????

I know, things will turn around next quarter.....the only problem is there might be no money left to turn things around.  Guess where all the money is folks....that's right the banks......and now the banks are running out of assets as they write off billions and billions each quarter.

By the way...if there is no money....what is an ounce of gold worth????

 

 

 

3 Comments – Post Your Own

#1) On September 13, 2008 at 9:59 PM, milpo (84.21) wrote:

Dear Alstry:

The  only solution is for a government to print its own money. Ron Paul is correct. The federal reserve must be sidelined. The central banks must be marginalized. The last sitting U.S. president to attempt this was Abraham Lincoln.  He actually pulled it off.  It was called the "greenback." Regretably, he was shot dead by a man called John Wilkes Booth shortly into his second term.  President John Kennedy once made the mistake of suggesting abolition of the Federal Reserve. Look what happen to him.  By the way, Zsar Nicholas of Russia was having a similar problem with his currency at about the same time as Abraham Lincoln.  Look what happen to him.

It all started with the establishment of the privately owned Bank of  England in 1694. A group of private lenders from Central Europe lent the government 1,200,000 pounds at 8% on the condition that they could issue "notes" to the full extent of this capital. By 1696, the "Bank of England" got a little carried away and was circulating 1,750,000 pounds in notes and backing them with 36,000 pounds of cash reserve.  That is what I call leverage or shoud I say "Moral Hazard."  There has been nothing moral about currency since that year.  Oh by the way, the Federal Reserve is the "Bank of England's" stepchild. Think about it, with a backing of about 2% of notes issued, the Bank was allowed to collect interest.  Historically, the best debtors have been governments, since they have multitudes of overworked tax paying citizens to help service the debt.

Finally, central banks can issue more notes at any time which can be freely circulated  into the economy increasing the strength of their creditor status while simultaneously diluting the value of existing notes as a percentage of the economy.  The recovery Alstry from this impending disaster which is going to make us beg for the  bread lines of the Great Depression is going to begin in local enclaves.  Immagine if the citizens of Minneapolis got so frustrated that they issued their own regional currency and charged no interest to distribute it.  Imagine this happening all of the coutry and subsequently small mergers forming to create regional currencies.  Help me out Alstry. Is this radical concept even legal?

 

Report this comment
#2) On September 13, 2008 at 11:18 PM, jester112358 (29.01) wrote:

But don't institutions have around 41 trillion in CDSs to "cover" these defaults?  (Just kidding) 

What's a $ worth with no fiat currency?  Probably the historical ratio of oil/gold or right now about:  .14 oz ($700/oz) buys a barrel of light sweet crude ($100/barrel).  (You have to refine it yourself).  Or you could trade it for any other finite resource like corn, soy beans, cattle etc.  The essence of the barter system.

Report this comment
#3) On September 14, 2008 at 12:50 AM, milpo (84.21) wrote:

Dear Jester:

You hit the nail on the head with your last  sentence,  The exchange of goods for services, goods  for goods, or services for services will be the only solution to the impending problem Unfortunately, you have to be a bit of an extrovert to barter and traditionally bartering has occured with people whose goods and services you are familiar with.  Is there any reason why a dentist cannot exchange his service of a dental extraction with a master carpenter for a set of custom shelves? I  think not.

In fact Jester, the only necessary currency will be an interest and usery free system in which bartering dollars will be  made available  in case a direct exchange is not possible.  The bartering dollars can then be used to satisfy a future need for goods or services. Maybe we can call them Milponotes of Milpodollars.

Milpo

Report this comment

Featured Broker Partners


Advertisement