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sammy the sage
01-06-2009, 09:54 PM
of course am a FEW month's early..BUT..am 100% correct...

read/weep/prepare

BERNANKE, Ben:
“Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or today, it’s electronic equivalent), that allows it to produce as many U.S. dollars as it wishes, at essentially no cost.
We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. (Nov 21, 2002 AD).

GREENSPAN,
Allan: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”


KESSLER,
Friedrich (Law professor at Harvard), commenting in 1993 on the German Hyper-inflation of 1921 – 1923), “It was horrible! It struck like lightning. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money.”

KEYNES,
John M.,: “There is no subtler, no surer means of overturning the existing basis of society, than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

KOTLIKOFF,
Professor Laurence: “The United States has experienced high rates of inflation in the past, and appears to be running the same type of fiscal policies that engendered hyperinflations in 20 countries during the past century. (From ‘Is the USA bankrupt’ – Federal Reserve Bank Review St. Louis, June/August 2006)

LIPPS,
Ferdinand. (Veteran Swiss banker). “The same central banks that sold gold at bargain prices, will at some point try to replace their gold reserves. They will use the printing press to accomplish this goal.”

MACHIAVELLI,
Nicolo: “Government consists in nothing else but so controlling its subjects that they shall neither be able to, nor have cause to do it harm.” (1469 – 1527).

“Rome remained free four hundred years, and Sparta eight hundred, while their citizens were armed all that time; but many other states that have been disarmed have lost all their liberties in less than forty years.”

ROTHSCHILD,
Mayer Amschel: “Let me issue and control a nation’s money supply and I care not who makes its laws.”

VOLTAIRE:
“Paper money eventually returns to its intrinsic value – zero.” (1729).

VON MISES,
Ludwig: “The planned economy is the most rigid system of enslavement history has ever known.”

“In all countries where price inflation has been rapid, it has been observed that the decrease in the value of the money has increased faster than the increase in its quantity.”

“Historically, bonds have always turned out to be ‘certificates of guaranteed confiscation’.”

“But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The Crack- Up-Boom appears. Everybody is anxious to swap their money against "real" goods, whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.”

“There is no means of avoiding the final collapse of a boom brought about by credit expansion.”

“Governments will destroy free markets long before they ever understand how they work.”

WARBURG,
James Paul: “We shall have world government whether we like it or not. The only question is whether world government will be achieved by conquest or consent.” Speaking before the US Senate Feb 17/1950. (The Warburg family co-founded the US Federal Reserve in 1913).

COPERNICUS,
Nicolaus: “Nations are not ruined by one act of violence, but gradually and in an almost imperceptible manner, by the depreciation of their circulating currency, through excessive quantity. (Uttered in 1525).

LottaKash
01-06-2009, 10:35 PM
of course am a FEW month's early..BUT..am 100% correct... ,...Nicolaus: “Nations are not ruined by one act of violence, but gradually and in an almost imperceptible manner, by the depreciation of their circulating currency, through excessive quantity. (Uttered in 1525).

That is it, piece by piece, and inch by inch......:eek:

I am going to learn to be a Farmer very soon......:rolleyes:

best,

lamboguy
01-07-2009, 12:13 AM
i think you guys are right, but i don't think it will happen that fast. the gold market is acting better than any other market i have ever seen in my life right now. it keeps going up then coming right back down and keeps its upward bias.

every one wants to get rich in 2 minutes, i can wait 2 years!

robert99
01-07-2009, 04:34 PM
From Bill Bonner:

"By 1945, the Anglo-American empire had only one challenger still standing – the Union of Soviet Socialist Republics. Militarily, the USSR was a real menace. But commercially, it was no more than a comic footnote in economic history. At first, the weakness in the Soviet's system was not obvious, especially not to economists. The figures – put out by the USSR – showed rapid growth. But nobody flew to Moscow to buy the latest fashions nor bragged about Soviet autos. Nor did people hasten to open accounts in Russian banks or seek heart transplants in Soviet hospitals. The Soviets had managed to create a rare thing – a value-subtracting economy. They took valuable raw materials out of the ground and turned them into worthless finished products. Given a choice, no one would buy Soviet-made goods. The longer this went on, the poorer the Russians got. Finally, the whole system caved in – in 1989 – leaving the Anglo-Americans masters of earth, sky and the seven seas.

The years 1989-2007 were remarkably pleasing to almost everyone. Even former enemies rushed to stock the empire's shelves and lend it money. Overstretched, over-indebted and over-there, it had military bases all over the world. No swallow could fall anywhere in the world without it being captured and interrogated by the Pentagon or its proxies. Back in the homeland, the imperial race went a little mad. They spent too much money, distracted themselves with bread and circuses and flattered themselves with delusions of mediocrity. It seemed perfectly normal to them that they consumed while the foreigners produced and spent what the foreigners saved. The imperial youth studied gender sensitivity at school; rivals studied engineering. And as for the foreigners themselves, like gigolos complimenting an ageing heiress, they barely suppressed a snicker: "Your hair is beautiful," they remarked. "Have another sherry." And while the poor woman admired herself in the mirror, they rewrote her will.

Soon, competitors had more modern factories, more savings, better-trained workers and lower costs. Then the empire turned to a colossal conceit; that it could pay its way by financing things, rather than making them. Gradually, the Anglo-Americans developed a value-subtracting society too – financing, derivatising, borrowing, flipping, consuming – all at the expense of real production. Russians would recognise the symptoms. In both Britain and America, the leadership was largely delusional, industrial capacity was largely archaic and dysfunctional, and the working class was broke. Central banks encouraged the plebs to consume; the more they consumed, the poorer they got.

The old Bolsheviks would recognize the rot too. What the Romans called consuetude fraudium became business as usual. By 2006, practically every transaction was tainted with swindle. Banks sold packages of scammy debt composed of mortgage contracts on houses sold to people who couldn't afford them. These were fraudulently rated Triple A by the rating agencies based on quack formulae invented by Nobel-prizing-winning economists. This took place in a party atmosphere created by central bankers, who had put something in the water; they spiked the entire economy by under-pricing credit and then urged consumers to drink up, by buying SUVs (Fed governor Tier, 2002) and using sub-prime loans (Fed chairman Greenspan, 2005).

The Russians would recognise the next stage too. After the collapse, the ruins are liquidated, picked over, and parcelled out to the politically well-connected. But the Russkies had an advantage; their system had already accustomed them to poverty."

BombsAway Bob
01-07-2009, 05:27 PM
John Crudele of the NY Post has been on top of many financial meltdowns the past few years. His next likely problem..the bond market
John Crudele (http://www.nypost.com/business/columnists/crudele.htm)
WHY YOU SHOULD KEEP A WARY EYE ON US TREASURIES

(http://www.nypost.com/seven/01062009/business/why_you_should_keep_a_wary_eye_on_us_tre_147345.ht m)THIS year you should worry about bonds. You say you don't own any. Well, that doesn't really matter because... by John Crudele,NY POST, 1/06/09

http://www.nypost.com/seven/01062009/business/why_you_should_keep_a_wary_eye_on_us_tre_147345.ht m (http://www.nypost.com/seven/01062009/business/why_you_should_keep_a_wary_eye_on_us_tre_147345.ht m)

PaceAdvantage
01-07-2009, 07:37 PM
How long do we have to wait for this "Financial Tsunami" before we get to label your prediction incorrect? Just asking...

LottaKash
01-07-2009, 07:49 PM
From Bill Bonner: The Russians would recognise the next stage too. After the collapse, the ruins are liquidated, picked over, and parcelled out to the politically well-connected. But the Russkies had an advantage; their system had already accustomed them to poverty."

Yikes, ain't we livin' it as I write this.........:( ....stop it Robert, it's now..

best,

BlueShoe
01-07-2009, 08:40 PM
The talk about the threat of deflation is utter rubbish.The Socialists that have taken control of the nation believe that they can acheive prosperity by printing huge amounts of currency in the form of bailouts and new govenment programs.Inflation is just around the corner.Buy Tips and precious metals.