Jump to content

Double Shot


Recommended Posts

Argentina is lower in the economic pecking order...as long as there is a bigger economy that will take advantage or buy the weakness it will not collapse...

 

The USA does not have a bigger economy to buy the weakness...The USA is the key to the world economic system...

 

When it goes down the world goes down...

 

Now what happens in the next 5-9 months?

 

Either the next debt deflationary shockwave which could be the finisher offer...Or the Machinehead hyperinflationary scenario...

 

He is playing commodities and his dreams would come true in the hyperinflationary scenario...reguardless commodities have pricing power in a debt deflationary environment, food and energy especially...it is the smart play...

 

Because the system as it is right now is the inflate or die system i just disagree with Machine on how much longer the present system can maintain the required amount of debt inflation...Unless non debt backed cash is printed and dumped on street corners (hyperinflation) then machine will be disapointed in the length of time left...

 

I just don't see how it can work economically...

 

Once you reach the point of the printing press the end is very close because once you turn them on you can't turn them off...

 

The FED has only threatened to do it... it is not doing it now...if it was we would already be seeing massive inflation not this kid stuff...At the very least the bond yeilds would be making new lows...or 1015 would have cracked a month ago...

 

Right now the only reason to print a dollar is if a consumer requests one from a bank...basically to prevent bank runs...

 

I'm watching though because I don't know what "they" ultimately have planned.

 

If you want the best advice then what you do is get the anals...and pay very close attention to what Doc actually says...Read the Anals a few times if you have to...It is worth it...

Link to comment
Share on other sites

  • Replies 397
  • Created
  • Last Reply

Joestool,

 

You still miss the point...if things are so dire in Argentina..how does the place function....can countries and economies fix themselves almost as quickly as they destroy themselves...things appear rough in Argentina but not as bad as they were 12 short months ago........thats why we are not doomed ala HT scenario...mankind is just too adaptable...doesnt mean we wont have recessions or even depressions....but life will go on,it always has....even with 15% unemployment 85% still have jobs......step back a little and look at things realistically...people like HT have been calling for TEOTWAWKI for ever....

Link to comment
Share on other sites

Argentina, frankly, is a sideshow on the world's economic stage. It's a.z) been eclipsed by its rival Chile, and b.) BOTH are dwarfed by the titan of S. America, Brazil, which, in the BIG px is a flea on the hide of the elephantine economy of the West.

 

The S American economies have, in one way or anUDDER, been pathetic examples of miscalculation and political skulduggery fur AGES.

 

They're a minor footnote in the GREAT SCHEME of things.

 

You're wasting time drawing analogies to same.

 

The problems confronting Argentina are only remotely ANALogous to ours, and so puny in scale ass to be laffable. If you don't think sew, send NOLAND and email and ASSk him. Hope he duzn't die of laffturr FURst.

 

To look at them and say "THEY managed, somehow, ergo, so, too, shall we" is bereft of any causal nexus/factual link.

 

We're SUI GENERIS, boyz 'n gurlz. No, that has nothing to do with Hollywood "actresses" who are of a bisexual persuasion.

or GAY. That's Latin FUR we're in a boat so unique, that no comparison can be drawn.

 

FURget Argentina. We've got to "reinvent" ourselves, independently of UDDERS, when our quite SINGULAR crisis hits, or, surely, it will consume us all.

Link to comment
Share on other sites

Bareister,

 

Forget Argentina...it can be any shithole country tittering on the brink of financial disaster...my point is as you say in the last paragragh...countries can and do re-invent themselves and if countries like Argentina with its history can manage to do it, so can your very own USA...i think the USA is by far one of the most successful countries in history....you seem to be riddled with guilt,blaming yourself for your generations excess'....i dont think like that at all...i live a decent responsible life,i dont feel responsible for any of it...life goes on.....dont let this get you down too much...things will be bleak for a period but we will adapt...especially we folk on Stoolsville who are prepared for whatever comes our way... B)

 

Unless of course as you have observed in the past that the citizens of the USA are really soft and totally unprepared for the harder times that are somewhere in our future...that would put a different spin on things....i suppose..hard to tell from here.

Link to comment
Share on other sites

Joestool,

 

You still miss the point...if things are so dire in Argentina..how does the place function....

 

True, Argentina hasn't been removed from the political atlas of S. America, nor has the whole

of its citizenry been dragged to the burning pits of diesel. There are survivors who will

do their best to rebuild. Just like there were survivors of the Nazi holocaust, bombing of

Dresden, Nagasaki and Hiroshima, et. al.

But, just because there will be survivors left behind to rebuild, doesn't make something an

acceptable consequent of the bottom of a "business cycle".

To complacently acquiese to a society's self-destructive behaviour, just because it's

gotten away with it so far....or when it no longer gets away with it, there's likely to be

a few survivors left to start again; is not a civic attitude with which I am comfortable

subscribing.

 

The same reasoning behind viewing USA as too big to fall, must also consider this could

just as well make the USA too big to pick back up if it ever did fall. The same

debates took place in Nero's Rome. It was too big to fall too, until moral decay and

currency debasement grew even bigger than The Empire and they became too big to continue

to ignore.

 

Among the links in the chain of Argentina's downfall was the same one common to the majority

of banking crises found in emerging economies. Once the system became instable due to

taking on too great a debt load and too large a number of non performing loans, foreign

and international monetery institutions pulled the rug out by withdrawal of funds and

witholding of loans.

 

In DEC 2001, Argentinians were denied access to their own funds at the same time the IMF

witheld previously promised money from a stand by loan agreement.

This "reconstruction" you see in Argentina now is the same international banking interests

buying up interest in the country for pennies on the dollar on their own terms

after the IMF witholding of funds reduced prices to whatever people could get from selling

their wedding rings to buy food to feed their families.

 

Three step textbook process: inflate debt, deflate debt, own it all.

I think Hypertiger's posts outline something very similar to that.

 

The difference with USA, is there is no IMF to even buy for pennies on the dollar if

our debt inflates to whatever point it is deemed no longer tenable. Who knows what that

point is...it's already well past no longer re-payable.

 

IMI's like World Bank and IMF all operate primarily from US$ funded reserve currency.

How are you going to bail out the USA defaulting on it's US$ based debt and hyper-inflating

of it's US$ currency by giving it IMI loans of even more US$'s even if it were possible?????

See the big cosmic joke here?

 

Scty Treasurer John Snow assures us that even though the USA carries such interminable

debt levels, there is still no lack of confidence in the US$ because it's such a pretty

green color and hard to counterfeit. But still I ask....WHAT IF after all this

unpayable debt has been piled up, all those foreign US$ holders decide to pull out anyway?

 

 

Indulge Temperate!

Link to comment
Share on other sites

HEAD AND BAG HOLDERS

 

SINA SOHU AND EBABE CLEARLY MAKING HEAD AND SHOULDER PATTERNS

 

Bully about to dump these babes.

 

PS there is a stock quoted on the Australian Stock Echange called M2M quoted at 1 cent.

 

If windy ever wants to go public??

 

I kid you not.

Link to comment
Share on other sites

In DEC 2001, Argentinians were denied access to their own funds at the same time the IMF witheld previously promised money from a stand by loan agreement.

 

This "reconstruction" you see in Argentina now is the same international banking interests buying up interest in the country for pennies on the dollar on their own terms after the IMF witholding of funds reduced prices to whatever people could get from selling their wedding rings to buy food to feed their families.

 

Three step textbook process: inflate debt, deflate debt, own it all.

'Zackly, joestool.

 

Argentina devalued its peso by 65% -- from 1:1 to the USD to almost 3:1. Argentina is now experiencing the boom that follows any massive devaluation. Its grain and beef are cheap. Its manufactures are cheap. It is a low-cost (and well-developed) tourist destination, with low-cost real estate for sale.

 

But the current boom was bought at a tremendous cost. People lost bank accounts, properties, businesses, even lives in the turmoil.

 

And what lesson was learned? President Nestor Kirchner spoke of a gold-backed peso during his campaign, but we don't hear much about it now. Devaluation booms are usually followed soon enough by inflation, as the economic overheating induced by a weak currency starts to balloon domestic prices.

 

And worst of all, Argentina is back at the table doing another deal with the IMF. I maintain that Argentina's best strategy is to just keep refinancing the IMF debt, ensuring that the cash is always flowing in its direction -- and wait for the OECD countries themselves to crash and burn in the twenty-teens. Argentina, with its extensive natural resources, is well-situated to just unplug from a collapsing world economy. They can sip wine and eat steaks as they watch the flames burn on the northern horizon.

Link to comment
Share on other sites

Guest yobob1

We're not Argentina. If the Argentine Peso had been the world's reserve currency and the same tactics had been employed there would now be global financial chaos. But then it isn't. Ours is. This is why the dollar can't simply be devalued and continues to beg the question devalued against what? Other fiat currencies who are also trying to be the cheapest currency for trade purposes or economic rescues? All fiat will be devalued against gold ultimately.

 

Still waiting for the new business cycle to begin and wondering just what in the heck will propel it. It won't be easy money, autos, housing, or capital investment. Oh now I see it, everyone on the planet is going to buy a new PC with 2048 mb of DRAM.

 

Energy can only remain cheap as long as the energy required to produce it is less than what is produced. Oil on a global basis is very near the cross-over point at which it will take more energy to produce than can be reaped. The matrix is powerless to stop this trend or replace the cheap energy. All other forms of energy production currently known have higher inputs than outputs. (see thermodynamics - law 2) Western civiliaztion's achilles heel - total dependence on cheap and easily obtained fuel.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...