If you're the type to wait around for universal consensus before you think or act, brother, the time is nigh upon us. More and more articles, more teevee shows, hell even the celebutante-obsessed media whores here in LA have done feature stories on "what could happen if..." or "..some experts say that if such and such continues to decline, there may be further global economic collapse."
Things that were once considered impossible, like the US Treasury getting involved in buying banks, the same government trying to buy out or nationalize the auto industry, and on and on you'd say "No way!"
Well, Yes Way! I'm not writing this stuff to convince anyone that I'm right and they are wrong. If you aren't concerned about what's going on around you then it's probably already too late for you anyways and nothing I can say or do will probably fix that. You simply aren't paying attention to the obvious signs that Something Big This Way Comes. Whatever "something" is can be debated, however, just take your pick. Here are three of literally hundreds of articles that portend doom and not in 20 or 30 years but in the next 12 to 18 months. Serious hurt coming down the path to be certain. As I've said before, these people are not in the habit (or business) of losing anything, least of which their hard earned capital. Take this for instance:
The Bank of England today slashed interest rates to their lowest level since it was founded in 1694, but millions of homeowners will not save a penny from the cut.
In other words, we've gotten Ours, thankssomuch, now Piss Off! These folks have been around since the 17th Century (think about that) and if they are losing money, son, the shit has already hit the fan. Oh, and why should we here safe and snug in these united States care what a bunch of pasty-faced Brits have to say about anything? Try because they own a shitload of our debt, and when Oh!Bama tries to borrow to cover his promises on his stimulus package, which will have to be financed through huge deficits, maybe the dollar will be so devalued that countries will seek safer harbors for their cash and not buy into worthless US paper debt anymore. Oops!
The warning comes despite the dollar having strengthened significantly against other major currencies, including sterling and the euro, after hitting historic lows last year. It will reignite fears about the currency's prospects, as well as sparking fears about the sustainability of President-Elect Barack Obama's mooted plans for a Keynesian-style increase in public spending to pull the US out of recession.
The long-term prospects? Not so good, either. When people are telling you to get out of US T-bills, once considered the pinnacle of financial safety and security, and especially the longer term notes, well, it doesn't really matter whether you accept this reality or not.
It's already here.
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