Topic: FINANCIAL COLLAPSE FEAR MONGERING NEEDS TO STOP (Read 6241 times)

I'm old enough to remember the promo for a late-1980's book called "The Great Depression of 1990".
The author was wrong and the 90's produced the biggest Bull (stock) market in American history.
I tend to expect the collapse to be dramatic and obvious. Your view that it's here already* is really interesting.
*Of course the Gov is broke, but that is nothing new.

The interesting thing which shadow stats point out is that we are already, even now in a condition of collapse.  The condition of the current generation is inferior to the condition of two prior generations, the boomers having enjoyed the peak and squandered their patrimony.  Primarily hedonic adjustments offset this.  (They are a real thing, with real effects on quality of life, but they make the numbers incommensurate, and thus make historical reasoning corrupt.  Hedonic adjustment factors should be separate series', for econometric purposes.)  The collapse which is so widely feared is just an acceleration of existing trends.  Pain which increases gradually is less directly objectionable than pain with immediate onset, but the effect is no less debilitating.  And the acceleration is present, measurable.

It's not FEAR MONGERING if we really are on the brink of a FINANCIAL COLLAPSE.
The hardest part is the timing, since the "intense pain" has been delayed for so long.

This is complete bullshit because the real wages in Australia haven't kept up with inflation.

Use REAL wages data not fake gov data

Cost of living in Australia is beyond insane and wages haven't kept up

There's really nothing you can do outside of what you are already doing. Don't forget to buy books...

Gold isn't safe from confiscation, nothing of any significance we do in the financial system is anonymous anymore. There's really no good options on the table.

^I already invested in 5 55-gallon drums of potable water, 2 ARs, shitloads of ammo, 3 bigass bear traps, and a lovely Eternal Care^TM cemetery plot for me and the missus.

I see the first cracks of imminent economic collapse, our doom creeping closer with the cold clockwork precision of a ticking egg timer -- to snap our spindly necks like a sprung rat trap.

I'm scared, pungopete468!  What should I do?!

I would love to believe that this dream can continue onward to infinity. Unfortunately it won't... This system is buckling hard right now and there is no way to save it.

The charts in the OP aren't a good indication for the actual health of the system. The downfall of this system will be related to major international tensions. Natural enemies have the power to destroy each other. The incentive is measured by the amount of relative damage caused inverse to the damage sustained.

The USA doomed us all to this outcome when it violated the Bretton Woods Agreement.

There's no need to. They simply calculate (at least in this case) CPI based on how the government calculated inflation in 1990 and separately in 1980, after Federal Reserve Chairman Paul Volcker had the U.S. Bureau of Labor Statistics change the way the calculated the CPI.

I can't speak for their calculations on middle 20% unemployment figures though. If someone can legitimize or justify how they get there, I'd love to hear!  

This week Forbes did have the balls to come out this week and say that the real unemployment rate is DOUBLE the official rate from the U.S. Bureau of Labor Statistics, putting it over 14%!

They're already here for the well-connected.

I have some Bitcoin derivatives with my personal broker Mr. Zhou.  Thanks to high leverage these make up the bulk of my savings.  I've also got a lot of Martian real estate and some Mt.Gox shares.

Unfortunately, nobody can be stopped from giving out an option or other derivatives on BTC. If BTC is successful enough, the derivatives will come...

It's too bad Bitcoin can't get into the derivatives market. It Bitcoin market cap ever got to one quadrillion... *drool*

Yeah, that derivatives bubble is just incredible, I could hardly believe the numbers. It was actually the only time I had ever seen the word "quadrillion" in use...

The Fed is stuck.  If they take their printed money and put it into the economy, give it to the people. it will get spent, and the V will go up, creating a dangerous inflation.  So instead they just leave it with the banks until they can hopefully repair their balance sheets before everything goes bust again.  Unfortunately the banks are just blowing up the same bubble as last time.  The Stock market is higher, yet we are damn sure not better off.  And don't even get me started on the Derivatives WMD.

Please take a look at the housing price index in Australia... You will find it will make the graphs you see in the OP of a so-called "stable economy" seem not so stable.

Yeah, I have a bachelor's and a master's in this kind of stuff, and your OP is still pretty shit. It's not wrong, mind you. Inflation and deflation are two actual real options with real theories, math, and consequences behind them. It's just that the inflation school tends to omit the consequences when it teaches about it, and use rather misleading words, like "hoarding" to try to persuade (we typically call that "saving").

The US financial collapse fear mongering was started by a select few in order to run up gold and silver prices (specifically). We saw the gold/silver bubble burst. Now we are seeing a second wave of this fear mongering because of bitcoin/alt-coins in order to run up their prices. Is the same thing going to happen to crypto?

Ultimately I think there will be a global financial meltdown but it's only starting to brew.

Disclaimer: I own crypto, gold, silver, copper, land, ammo, fiat, stocks.

You're not just keeping it up with the times.
It's not longer the time when people cared about what the material contain not the title , it's time for materials that scream "DISASTER" "COLLAPSE" "pANICC" "Run for your livesss" with fake evidence behind it.
People want to see disasters want to see collapse in every damn numbers.
Those people have said that the us will fail in 2000, 2001, 2002 and they can't understand why is 2014 the us is still there , so it's the EU and the euro.

I sometimes think if it's not turning into a diseases , this unstoppable desire for disasters.

Your graph shows an inflation rate of 3.4% per year for Rentals over a 24 year span, and appears to have no correction for the changing size of houses which have more then doubled since the 50's, we would expect rentals to have grown proportionally and thus we can easily explain a full percentage point or more that way leaving us again with the 2.5% official number passing the sanity check.

Bitch about the inflation rate that ACTUALLY exists, and the failure of wages to KEEP UP WITH INFLATION if you want, but don't throw out BS numbers and conspiracy accusations that serve more as a measure of your gullibility and anger then the economy.  Your making yourselves look like clowns who don't know the first thing about math or economics and this discredits all your predictions and proscriptions for the economy.

Are you trolling OP? Unfortunately some have not learned from our past mistakes. The banks have gotten more clever this time around and instead of selling Mortgage Backed Securities to pensions and hedge funds, they're selling it directly to the Federal Reserve. 85 Billion dollars per month, or a little over a trillion a year at 0% interest rates.

When you borrow from the FED for nothing, and charge your cardholder 20%, anyone can make money.
 
Even if you are only charging 9%, you are stealing them blind with profits relative to cost.

What's a bank with billions of dollars to do? They buy a bunch of useless shit. Drink beer, soda, or energy drinks? JP Morgan and Goldman Sachs have skimmed millions out of the Aluminum market.

http://www.nytimes.com/2013/07/27/opinion/goldman-sachss-aluminum-pile.html?_r=0

If natural laws of economics were in place, banking would be extremely competitive and it would not be very profitable.

But inflation is low, some say. Yes, the official CPI numbers are low, but they are rigged. The price of housing and rent has gone up. The price of petrol, electricity, even the price of printing a dollar is up. Banks can just selectively buy assets and point to the CPI "But look! the CPI is low and inflation isn't hitting it's target"

Ever wonder why rent is sky high while you're unemployed or underemployed and barely able to make payments? Banks are buying up a shitload of houses and rent them out for record profits.

http://business.financialpost.com/2013/04/23/us-rentals/




The median asking rent for US vacant housing units just hit an all time high of $735 per month.




There's no way out. Had the US gov't let the banks fail and endured a fast, hard, deep recession starting in 2008, while there's no guarantee because things were already pretty fucked, there was at least a chance to recover. There is no chance now.

So the system will fail, and do so spectacularly, with more and more insane financial inputs until it just suddenly collapses. In the end, banks will try to suck every last dollar out of anything that moves and we're all along for the ride. Short of a global revolution where we go back to sound economic policies such as abolishing central banking, putting a stop to deficit spending with 0% interest rates, and replace the current system with a resource based economy with Bitcoin as a part of it, shit will only get progressively worse. Actually shit will get worse anyway, but thanks to the help of Satoshi, at least we can at least throw off the shackles of .gov and the banksters.

Utter chaos or controlled crash, I keep coming to the same conclusion over and over.  The only difference is the timeframe. The more chaotic the events, the faster we reach the inevitable conclusion.  Thus, the most chaotic of outcomes might be 2 years or so. The more controlled may be 20. Reality will likely be somewhere in between.



TL;DR I'm not buying OP's perspective on inflation. Shit will only get progressively worse. SOMETHING will happen at some point to trigger a quick escalation of our already collapsing global economy. The question we're all asking is when, and constantly seeking clues... At least I am.

Yet people persist in defending the power of the central banks to wantonly destroy and cruelly seize wealth from the population to enrich a very few amoral sub-human oligarchs.