August 13, 2014 at 11:19 am #21835
I stole the comment below from another site.
“the money isn’t “there” anymore. It was used to purchase piles of IOU’s that are now in the hands of China and the Fed (and some Europeans, Middle Easterners, etc). The IOU says the American taxpayer owes you such and such money. If the American taxpayer were to actually pay off those IOUs, that would end the American economy. So we are not going to do that. The Fed will double down and keep printing. The politicians will keep getting that money and keep spending it.
Thanks to American political stupidity, sooner or later there will be a breakdown of worldwide law and order. We will technically default to some extent which will tank the stock markets which are structured around the treasury bubble. We will monetize to some exxtent which really will be printed money sent abroad where it will be “hot” and create asset inflation worldwide followed by a bust (2008 all over again except worse this time).”
The alternatives to those two catastrophes are laughable: 1) we grow our economy enough to pay off the debt (Obama says no way). 2) we roll the debt forever (sell new paper to pay off the old). But nothing lasts forever.
The consequences of federal default will be enormous. Fannie and Freddie will default, many states will default, public pension funds will default. The economic legal system will get tossed under the bus, bondholders worldwide will get stiffed causing worldwide depression. We may join that depression or hyperinflate then join. I have a feeling the politicians will ask the Fed for hyperinflation but the Fed won’t completely oblige and the politicians will print themselves, probably confiscate all the food and hand it out, etc. We may get to civil war even before that happens. There will be a reset, then we may have a luxury of starting over or we may not.August 13, 2014 at 11:27 am #21836
That’s a big mess waiting to happen. Make sure you’ve got your boots tied up tight, guys, this might get ugly.
Canadian Patriot. Becoming self-sufficient.August 13, 2014 at 11:55 am #21838
This will take a while to develop.August 13, 2014 at 12:37 pm #21841
74, I think the government knows this is going to happen and there are ways to add the numbers up to know when it will happen. They will not tell us the date because before that date they will plan a false flag event so big that the world will be looking at that event and not the collapse. Then the government will declare marshal law to get an upper hand on the people to control us and try to stop a civil war.
So all of this may happen years ahead of a collapse. I don’t think they will wait till the collapse.
That is my views.August 13, 2014 at 12:56 pm #21843
When you read the article you find that China doesn’t want a strong Yuan. The Dollar is cheap now and they want a strong Dollar.
I had posted before that China knows that a collapse of the U. S. may collapse them and they will not have anyone to buy there products. By there Yuan going way up it would make there products so expensive that no one would buy there products which could end there economy and create civil unrest, even civil war in China.
We are seeing a plan event. I remember when everyone was saying that Japan was taking over the world, remember that? Japan was buying up American properties left and right. Now what happen?
I think the Chinese know this history and do not want it to happen to them. The bad thing about a strong dollar is it makes everything made in the U. S. more expensive to buy for other countries. We do not want that.August 13, 2014 at 1:01 pm #21844
I don’t think anyone in government is smart enough to figure out the date of a collapse.August 13, 2014 at 1:27 pm #21846
Maybe you are right but I think that they will have a tipping point where they think the economy will collapse if they do not do something about it. They will not let it get there without trying something else to keep everyone’s eyes away from the collapse.
But I do believe that if the U. S. collapses so will China collapse just like the articles says. China needs us and Europe since we are there biggest customers. They can’t eat gold!August 13, 2014 at 3:21 pm #21868
Could this be a situation where events will move faster than the politicians will be able to react? How many times have we seen the unintended consequences of their actions?
From what I’ve read these things often happen quickly. While the underlying structure that causes it takes years to develop, when we reach a tipping point things go down hill very fast.
I agree with Mr. Red it’s not only time to tighten your boots, but also your purse strings.August 13, 2014 at 3:38 pm #21870
The Chinese already have a totalitarian system set up and a completely unarmed, pacified population. The last time anyone crabbed and agitated, they got machinegunned and ran over with tanks.
I think there are levels of survival the Chinese are willing to accept. They would rather rule in Hell than serve in Heaven. Which means I think they’d be more than happy to dump our worthless bonds in order to send us down in flames. With us gone, they’d be king of the hill…
The wicked flee when none pursueth..." - Proverbs 28:1August 13, 2014 at 3:41 pm #21871
Did you intend to describe exactly the last ten years and put us at D day?August 13, 2014 at 3:41 pm #21872
If China dumps the U. S. Treasury bonds to fast it may take China down too. China wants to make the U. S. Dollar more valuable so it can sell more product to us. It will not be good for us to have a strong dollar right now. It would make U. S. product more expensive to buy and we may lose more jobs.
For China they will get more time to become a supper power and will take the U. S. down slowly to a collapse.
I still think China wants to become the world power but needs to do it right. They know that when the U. S. goes into a collapse the collapse may take them with it so they are planning for it. They have a way to make the U. S. Dollar stronger for a time, after the sell there U. S. Treasury Bonds then they do not have the any way to pull the dollar up anymore.August 13, 2014 at 4:03 pm #21878
I think you underestimate the Chinese.
I was told the following by an old NCO back in the day when I was still a young pup and there was no Internet. I have no reason to doubt it’s accuracy, but then again, I cannot prove it actually happened because everything has been scrubbed down the Memory Hole and everyone denies it took place…. but for me, governments issuing denials is almost as good as admitting it happened.
Back in the 60’s or 70’s, I don’t remember when it was (likely the 60’s), but China and Russia had a border dispute. Russia said they owned this scrap of land. China said they owned it. Back and forth it went. Tensions escalated.
Finally, Russia moved a tremendous number of troops onto this scrap of land – multiple divisions, if memory serves – and basically said “If you want it, come get it.”
Because the scrap of land was in dispute, China decided to perform a “nuke test” over this piece of ground. Multiple divisions of Russian soldiers were vaporized and killed.
We know that a “nuke test” was conducted because the seismograph guys said it registered on their equipment. We also know bits and pieces from the Russian side – mostly thousands of civilians who got letters in the mail saying something to the effect of “We regret to inform you that your son was killed in a training accident while…”
Edit: All these Russian parents got the letters at the same time. If you added up the numbers, it was a tremendous number of troops that “died in a training accident”, yet, no “training accident” large enough to kill them all was ever announced or admitted…
I truly believe that the Chinese nuked that crappy scrap of land and wiped out thousands of Russian troops, more to demonstrate their resolve than to fight over some useless scrap of land that has almost no value.
Do not underestimate the Chinese.
The wicked flee when none pursueth..." - Proverbs 28:1August 13, 2014 at 4:54 pm #21882
The Chinese could lose population equal to the entire US population, and TPTB would likely see it as an improvement given the serious resource shortages they have. I don’t think there is much they wouldn’t sacrifice in order to achieve their goals. They have a goal that they are marching towards.August 13, 2014 at 4:56 pm #21883
Malgus, I agree to a point, the Chinese work on slow planning not like us, we want everything done yesterday. I believe they love to see us die slowly and for them to milk us for everything they can get before taking us down. So on the dumping of the U. S. Bonds they own what I think they will do is slowly sell them to make the dollar go up so they can sell more goods make more money to prepare them self” s as best as they can for our collapse.
I think they will buy time to up there military to the point that we will not be able to go to battle against them. They are getting close with there military.
I am not underestimating the Chinese I just think they plan in years and not like us in days.
But that is only what I think, I maybe wrong on this.August 14, 2014 at 12:07 am #21905
Not sure D day. Using a clock I’d say were at 11:50. Timing is a hard thing to predict, but it sure feels close. The Russians acting up, China making deals all over the world, and our weak leaders have us very close.
Freedom makes a good point. The Chinese long view is generational. They make us crash and burn, it will slow down their economy, but they will have no competition when things start to be rebuilt.
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