What Will Happen to You When the Dollar Collapses?

[ctiger2]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.

What if we move interest rates to say 6%. lol kaboom!

 

[The Gold Standard]

Interest rates will probably never be 6% again. As soon as they break 3-4% either the Fed will buy more of them to bring the rates down or they will quickly jump to 25% or more.

 

[helmuth_hubener]

Lose a lot of money in bonds.

Make a lot of money in gold.

Probably suffer some bad consequences as the US economy in general suffers in the extreme.

 

[fr33]

I would probably realize that 60 miles away from a city is not far enough away.

Then I would probably start butchering calves and trading meat for bullets and beer. Not that I have a shortage of bullets but there's no such thing as too many bullets.

 

[oyarde]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.

I imagine they will use it all too .

 

[oyarde]

I would probably realize that 60 miles away from a city is not far enough away.

Then I would probably start butchering calves and trading meat for bullets and beer. Not that I have a shortage of bullets but there's no such thing as too many bullets.

You could just eat the calves , trade the soup bones and some jerky for silver , use the silver to buy liquor.

 

[fr33]

You could just eat the calves , trade the soup bones and some jerky for silver , use the silver to buy liquor.

I've got thousands of calves. I'd like to get something out of them before the thieves start stealing them.

 

[fr33]

I've got thousands of calves. I'd like to get something out of them before the thieves start stealing them.

I reckon they won't care about vaccines and hormones in such a scenario.

 

[oyarde]

I've got thousands of calves. I'd like to get something out of them before the thieves start stealing them.

Well , have Danke swing down there and bring me about four on his way to pitch his tepee up the hill with my wild turkeys and deer.I'll give him some silver to pay with.LOL

 

[oyarde]

Pitching a tent in Oyarde's yard.

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

 

[Working Poor]

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

That's what I am talking about.

 

[luctor-et-emergo]

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

Time to shuffle things up.. The world could use some re-arranging. I'm not sure if it is going to be a lot of fun but where there is a collapse there are also major opportunities. Only for those that look towards the world with a gaze of enthusiasm and a spirit for entrepreneurship. For the rest of the people it's just going to be a crisis. Good opportunities though for those that find themselves cornered by how the world operates right now and more specific how the economic system is structured. Heck, I'm moderately optimistic about it.

 

[osan]

So... what you're saying is, if we are to spend all our money on hookers & coke, we should do it now?

Finally someone makes some sense.

 

[oyarde]

Pitching a tent in Oyarde's yard.

I had the Mrs clean up the fire pit for you .

 

[Tod]

If I recall correctly, Warren Pollock was recently saying that we are likely to slowly become poorer and poorer until we are indistinguishable from any third-world country, with a wealthy class, and oodles of poor people who are left with no means of digging ourselves out of our hole because we've been there so long we no longer know how.

 

[Peace&Freedom]

One Last Look At The Real Economy Before It Implodes - Part 3

In the previous installments of this series, we discussed the hidden and often unspoken crisis brewing within the employment market, as well as in personal debt. The primary consequence being a collapse in overall consumer demand, something which we are at this very moment witnessing in the macro-picture of the fiscal situation around the world. Lack of real production and lack of sustainable employment options result in a lack of savings, an over-dependency on debt and welfare, the destruction of grass-roots entrepreneurship, a conflated and disingenuous representation of gross domestic product, and ultimately an economic system devoid of structural integrity — a hollow shell of a system, vulnerable to even the slightest shocks.

This lack of structural integrity and stability is hidden from the general public quite deliberately by way of central bank money creation that enables government debt spending, which is counted toward GDP despite the fact that it is NOT true production (debt creation is a negation of true production and historically results in a degradation of the overall economy as well as monetary buying power, rather than progress). Government debt spending also disguises the real state of poverty within a system through welfare and entitlements. The U.S. poverty level is at record highs, hitting previous records set 50 years ago during Lyndon Johnson’s administration. The record-breaking rise in poverty has also occurred despite 50 years of the so called “war on poverty,” a shift toward American socialism that was a continuation of the policies launched by Franklin D. Roosevelt’s 'New Deal'....

http://alt-market.com/articles/2539-one-last-look-at-the-real-economy-before-it-implodes-part-3

 

[Zippyjuan]

If I recall correctly, Warren Pollock was recently saying that we are likely to slowly become poorer and poorer until we are indistinguishable from any third-world country, with a wealthy class, and oodles of poor people who are left with no means of digging ourselves out of our hole because we've been there so long we no longer know how.

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).

Some have suggested (and data seems to support it) that our booming middle class following WW2 was a historical anomaly. Historically there hasn't been much middle class anywhere in the world.

 

[Zippyjuan]

To offer another theory, others suggest that it isn't necessarily that the middle class is doing poorly, it is that the other classes are doing better relative to them- they have been improving at a faster rate. Poor today is not as bad as poor was a century ago.

 

[Acala]

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).

True too an extent, except that it is not a zero-sum game. Eliminating barriers to the free movement of resources doesn't simply equalize existing levels of prosperity, it raises EVERYONE'S prosperity. All of the millions of transactions that were blocked by trade restrictions, but are free to occur with those restrictions removed, add to the aggregate wealth of the world. More efficient distribution of resources increases prosperity for everyone. And since trade restrictions tend to favor those who are already in a position to buy protection for THEIR interests, the new wealth that is produced by the elimination of those restrictions is likely to benefit a wider range of economic classes than current international trade.

 

[osan]

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).

This presupposes conditions that would not necessarily prevail. Much, most, or possibly all of the decision to be made in such regards would be based on NPV analysis. Wage costs would certainly be factored into a net present value calculation, but would not necessarily be the overriding element of consideration. Other factors might include the overall corporate strategy which might favor other choices than those suggested by NPV.

WRT wages and all else equal, the gap between the higher- and lower-wage areas would be critical in deciding whether to move. If wages are 20% lower in China than the USA, it would likely not be profitable to incur all the fixed costs of moving and establishing a new facility in a foreign land, especially when considering the costs of possibly shipping raw materials to China and the finished products, say, back to the USA. That is all terribly resource inefficient. I find it interesting to note how all these ingorant, whining sissy-men who go on about issues such as global warming and all that rot, say nothing about the relative material inefficiencies of shipping stuff all over the world and back to America for the sake of saving labor costs. But that's another discussion.

Large business decisions such as this are never as simple as your words would suggest. I've done work like this for clients and I can tell you that it is a really big deal in terms of the complexities. Labor cost alone is not a simple matter of how much you pay your people per hour. There are all manner of political considerations including taxation and many others. Then there are the questions of quality of the labor. It profits me nothing to send my work to China if the Chinese laborer turns out shit for which I much then refund customer cash or otherwise make them whole when my dog-pile products fail.

But for a while, assuming freedom in all markets and no slave-labor nations like China to be tolerated, there would be gross disparities between labor markets in terms of cost. Those gaps would close in time, assuming a leveling of global standards of living.... which is a really big assumption. But if is be the case, then there is the further issue of rising global demand for a given product or class thereof. Then you get into questions that make the marxists happy - those relating to the carrying capacity of the planet. Were tomorrow everyone endowed with the economic legs of the average American or European, we might see prices of everything surge through the roof, at least for a sizable period as all those "other people" began the drive to acquire like boss-Americans.

We've never had this sort of circumstance before - not in the way we now have it. Nobody really knows what would happen.

Some have suggested (and data seems to support it) that our booming middle class following WW2 was a historical anomaly. Historically there hasn't been much middle class anywhere in the world.

"Anomaly" - what a wishy-washy, say nothing, utter bullshit term. It may never have happened before because the tyrants of yore would never have allowed it. To have a so-called "middle class" would have diminished Theire power and that would not be tolerated. So to say that there has not been a middle class is a big whoopdee-doo moment just as when she sees me in "the suit" and says "Oh my GOD... is that thing REAL??" Yes, and the sky is blue, water is wet, the sun is hot... blabity blah.

But to call it an "anomaly" is true shyte. Rather than "anomaly", perhaps it was rather the result of the market freedoms available to us in those days, long long past.

And who are these "some", anyway? Put them before me and I will put the smack of truth across their faces so that as they one day find themselves upon their deathbeds, watching satans little wingèd things circling above in wait, rather than dreading what is short to come, they will be hearkening back to that day I did my do in response to this utter and viciously befouling nonsense about the relative merits of freedom v. constriction. Whoever they are, may God strike them sterile that their stoopid-genes not be passed to yet another generation.

This shit ain't rocket surgery. If an idiot like myself can see what is clearly apparent, so should anyone else. They don't because they refuse it.