World Markets Continue their Slide

I really do not understand why the media is still very silent over this.

Why ignore an issue that could send America into a depression?

Originally posted by infinite
I really do not understand why the media is still very silent over this.

Why ignore an issue that could send America into a depression?

Very interesting analysis that goes into great depth here.
His final comments:

Here's my last news flash for you. If a fellow with no education, a poor diet, and inadequate medical treatment living at 3,500 meters above sea level can figure out that the US dollar is undesirable as a store of wealth, how much longer do you think it can last as the world's reserve currency? The short answer is that the party is over and all things dollar related will go up the stack with it. What we saw last week is the equivalent of the first drops in a storm destined to last more than forty days and forty nights.

Source

It went down hill for the Dollar when the Chinese decided to start investing in other currencies.

That kicked it off.

In other words that quote you posted is true..

the party is over for the dollar

Originally posted by infinite
It went down hill for the Dollar when the Chinese decided to start investing in other currencies.

That kicked it off.

In other words that quote you posted is true..

the party is over for the dollar

The article that accompanies that quote is good for the layman (me) who only have a basic grasp of what is going on. I urge people to read it.

Originally posted by infinite
I really do not understand why the media is still very silent over this.

Media hype over a failing economy would serve to accelerate the effects. It's a confidence game and they don't want to be "unpatriotic" now do they?
.

You do have to smile at bloomberg when it refers to this as a "blip"

good old media eh?

This brings the issue Gools of how vulnerable is the US, obviously militarily is not, but when it comes to foreign debt yes we are.

Our vulnerability was show very well when the markets did their thing after china problem. Our successful economy rest in the generosity of creditors from all over the world, including China.

What will happen if our creditors the ones that has supported our debt decided to stop financing our debt?

US financial standing is going down the hill, the only reason we have the ability to finance wars and any other world wide endeavors is due to foreign help.

What many fail to see is the power that foreign investors and markets like Europe and Asia now have on our Nations economy.

Right now the nations that hold our debt if they want to cause damage to us all they have to do is attack us no militarily but by means of our economy.

How has our nation become so vulnerable?

Originally posted by marg6043
How has our nation become so vulnerable?

very complicated matter,

i think it was to build the economy up quickly to be able to afford the military budget during the cold war. not sure.

Ah yes. The question Just how vulnerable are we, really? There are a number of domestic factors in lay that make the overseas potentials look truely frightening.

I think future historians will call this recession a self-inflicted wound. If we're fortunate, we can limit the damage to a recession. If we're not so bold in our decision making and policies, we'll suffer through a real depression.

Those who are following the financials will see that the credit market is melting here and aboard. Banks, mortgage providers, and insurance comapnies are all dependent on positive credit for their success. Trouble is, there are too many of these companies that have made risky or even bad investments.

As the rate of defaults and foreclosures go up, stockholders will sell and these firms will suffer from both ends. As their cash flow dries up, their companies will fail. There are several reasons why this will hurt more people than the 1929 crash ever did.

The most threatening thing faced by the average American is their credit card debt. As you may have seen over the last few weeks, the U.S. Congress has been questioning representatives from the credit industry about some of their policies and practices. too many card hodlers arebeing trapped in to debt that they can't pay, despite all of the good faith in the world.

Every credit card in America today has a provision in the fine print that means the lender can ask to be paid in full...now. A small percentage of card holders will have tiny balances that they can zero out quickly enough. Others will need to refinance their homes to tap equity that will be used to pay off the plastic. Everyone else is...toast.

It's not unreasonable to suggest that we could see a cascade effect that would destroy the U.S. economy. The money supply would simply fail because there wouldn't be any. Smal business closures would spike the unemployment rate. Corporate downsizing could happened faster than you could track it. These, among many, are the real worries.

Today the mortgage companies are coming out with more strict rules for borrowing, this will make things more difficult for them, because now they will only look at almost perfect credit scores for loans.

And because it will be less candidates to fight for a home on sale the prices on homes may decline not only because of that but because the loans will be less money than wanted and home owners will suffer.

This will make the situation with the mortgage companies and home owners and buyers worst.

Indeed we are heading a down slop on the house markets.

When it comes to the credit cards like Justin said people that have low charges can pay but people with big credit cards bills can not and what is going to happen if credicards ask for full payment?

They can come back and get hold of your property because the new laws that the present administration have in their favor.

People has forgotten about these new laws but I guess it was a reason why the present administration made then, perhaps they knew that this was coming alone the way.

But why tramp on the consumers, I wonder.

[edit on 14-3-2007 by marg6043]

Why trample on consumers? Unfortunately, the people and organizations now involved in the push for greater power for themselves see people like you and me as obstacle. We're in their way. Or, we are to be exploited. There's nothing new in this, those who have the gold have traditionally made the rules. As bad as all ofthis is, I remain hopeful that once the pot boils over, there will be a new move on to make reforms.

We are in trouble, when Bush got the bill on bankcruptcy laws we the consumers were given in a silver platter to credit card and other loan companies.

If things keep getting as bad as it seems we are going to be eaten and digested by every single company looking for a cash out to save their butts.

Executives on the credit card and financing industries will have control over us in a failing economy.

We are at their mercy.

they've got us at their mercy...for the moment. It's true that there will always be a segment of our society that just isn't good with money, but we do have some good to look forward to.

I've made my case for what I think is coming in our near future. I was even bold enough to put my thoughts in to print. Having said that, let me take a moment to look at some of the good things that will eventually be coming our way.

This credit collapse is going to be an unholy mess. No two ways about it. I had a radio host ask me the other day if I thought we might fight a new revolution or civil war in this country. The answer would be "yes." The old school power brokers who will take things too far are going to get their shiny bald heads handed to them.

As we get past that, in to a period of what you might call reconstruction, we can expect a lot of common sense reforms to take shape. In the short run, before that prediction comes to pass, we can expect to see some reforms to the credit systems after this thing hurts enough people. That may not sound very 'positive,' but there you have it.

That's why conversations like this one are so necessary. You'll never know it, but somebody could be coming to this issue for the very first time. As they find discussions like this, they might learn something they don't know. Who can say? YOU might be the one they most identify with. That's just one more good thing.

Originally posted by marg6043
We are in trouble, when Bush got the bill on bankcruptcy laws we the consumers were given in a silver platter to credit card and other loan companies.

That's because consumers were racking up credit card debt and defaulting. I know, because I unfortunately have a relative on my wife's side who has done that twice. The new BK laws are good in that aspect. It helps control people who obviously cannot control their spending by themselves.

Admittedly, the new BK laws do hurt innocent people who may have lost their job or have high medical bills. But, a chapter 11 BK allows you to repay a reduced amount of debt at a reduced rate. I think that is totally fair, after all it is your debt.

If you cannot repay it don't spend it. Our parents didn't have this problem, it's our generation because we all have to have that 50" plasma TV. I have a real problem when people who collect financial assistance from the government have bigger televisions than I do. Yet their kids are in dirty and worn clothing when they wait for the bus each morning.

European markets are down by 2%...

The fear is still there in the market, but America still maintains a deny front on a potential depression. This is not "blip". Many European markets are expected to loose atleast a more "few hundred points".

The US housing market has opened up a HUGE problem.

You know what the funny thing is that is actually no funny but a wake up call to the American hard working tax payer, that everything happen when China had their littler constipation problem.

That's why the call it Globalization. If one of the markets gets a cold, all the rest have the sniffles by the end of the week. If any of the overseas credit markets fail, we could see plenty of bad stuff happening here. Sobering stuff, to be sure.

OUt of interest, what is the following:

www.advfn.com...



I may be stupid, but isnt an %80 loss pretty sevre?

I suppose its time for a new question for the panel.

Knowing that the dollar is underattack by foriegn interests and speculators, should we assume that they are taking advantage of our
self-inflicted weakness?

It's worth remembering that the dollar is traded against other currencies. In as much as the European Union is made up of our allies, they would be happy to see the Euro achiee dominance over the dollar. The Chinese, who have bought so much of our debt and are holding large amounts of t-bills, could also benefit from any sort of American economic collapse.

What are your thoughts?

If the US gets bankrupt, we will have what it calls wealth transfer. The wealthy investors including, US walthy families, China, EU and Asian markets will be able to get our nation assets for pennies on the dollar, bailout deals, something that actually is whats happening right now with our debt been owned by foreign markets.

Scary picture.

We the regular hard working tax payer will be losing at the end while foreign investor will own us and the few very wealthy families in the US.

As with transfer of wealth the divisions between the very wealthy and the regular American will become more marked.

A small group wealthy investors will become trillionairs and they will hold our nations future and regular Americans future.

Scary picture still.

If our government goes own sale US will have only enough money after the sell out to pay the interest and will have still more debt and nothing of assets to borrow anymore.

Scary picture again.

We the American people that are the hart of this nation have no control whatsoever of the corrupted and shady deals of our governments when we are suppoused to be the governemnt.

They are robbing us blind. Our government is a group of wealthy families that are going to bankrupt our nation so they can become more wealthy during the big sell out after the crash.

What is the future to look like? We the American people will become a nation of servants to the superrich. the NWO.