ThomasL2 wrote:
Inventor wrote:
The grim future has little to do with the clown show.
The question is, will the economy collapse before or after the election?
By several measures we are still in extended Recession. All of the QEs and Zero Interest have been used, and another recession is due.
With all of our recession fighting tools used up, and there was never any regulation of derivatives, we have no defense.
Banks have never returned to Mark to Market on the value of their assets, so they are all bankrupt.
The P/E Ratio on stocks is twice the historic norm. The Dow should be 9,000.
The next downturn has no bottom.
Excellent analysis. I suspected as much. What do you recommend people do? What are you doing to prepare for this?
The vast damage, just like the last one will not hit me. It hits Pension Funds which own the market, and Banks who own the debt.
The Free Market, look it up in history, marked down Stocks, debts, and companies that were not solvent were sold off in parts. Most players got something, only Common Stock could lose everything.
Obama changed things, his GM deal was a crime against Bond Holders that traded Common Stock for votes.
We used to have Laws, they are still on the books, about how an insolvent business is resolved.
I like Trump because he knows how Corporations are Governed. It is a Private Government, Bond Holders, Common Stock Holders, Management, Employees, all have defined roles. Both State and National Government have Laws about Fraud, Worker Rights. It is a working power, that can be dissolved.
We need more power, a Business Police that can stop the likes of Obama when he uses his Community Organizer skills to restructure Detroit Auto Production. Also his giving Trillions of Loans to Banks and Brokers, because they were not solvent, not loan worthy. Also, the Fed purchased Trillions in bad Paper, at full face value.
Ford was not much different from GM or Chrysler, but they refused money, and became profitable.
Most of our 8,000 Banks were not writing mortgages on sub prime, and reselling them as Bonds. Most of our banks took no money, and rode out the housing bubble.
Never before has the government stepped in and funded parts of industries. In the market that would be called Moral Hazard, bailing out one company that was badly run, all companies will be badly run.
In the Free Market, badly run has it's corpse chopped up and sold on the Court House steps.
Under the Barry System, only invest in companies that hold Government Pensions, and give a billion a year to Congress, Goldman Sachs. Government picking the winner in Solar Power, Moral Hazard, crashed that company because they did not have a place in the market, a plan, other than take government money.
Other people who did understand the market sector could not gain traction, because of government investment.
We got to our system because Corporations started as Royal Monopolies. Even then, some of the biggest bubbles ever, lost most of the real wealth of England. Obama governs like a Royal Monopoly.
So do not invest in Stock till the Free Market returns.
My own choice and advice, own a backpack, with tent, sleeping bag, ground pad, cooking gear, several good pair of boots, knife, hatchet, first aid kit, outdoor clothing, hat, rain gear.
This was my post Katrina plan. When I had to leave for Katrina I had a couple of changes of clothing, and thought it would last days, It lasted six weeks. Now I have a good pack, with most things I need to live in a forest for months.
A pump type water filter, some dried food, toilet paper, tooth brush and paste, Advil, Jack Daniel's. Snare wire, a fishing kit, a handful that can feed you for months when other things run out.
Just a basic ability to survive on your own for days to months. For several hundred dollars I have Bugout Bag. If I never use it, it is worth it for peace of mind.
Next, the ATMs quit working for a week. My cooking gear is Sterling, I also have some coin, old half dollars, 90% silver. Three halves contain one ounce of silver. I used to get money as I spent it, now I keep a cash stash.
In the house it does not cost much to store canned meats, noodles, Gatoraid, enough that if the world stopped I could eat and drink for a few weeks. Backpacking food is more expensive, but I have a Motorcycle that will pack me and several hundred pounds.
My game plan is to vanish into a National Forest for a few months. I have seen it fall apart.
My plan is finding bottom, back country camping is free, I can live cheap,
Katrina was a miss, it crossed the mouth of the river heading North East. If it hit the mouth of the river heading North West, it would have topped all the levees, and everything within thirty miles North would have been open water. There would have been nothing to return to.
There are other things that can happen over a much larger area. North Korea launches a nuke that goes off a hundred miles up, the EMP destroys all electronics. An asteroid is making a near pass, 11,000 miles, inside the Clarke Belt. Congress is in session. Bank Depositors have been redefined as Investors. The Banks bought Oil at $100 with Trillions of borrowed money, oil was recently under $30.
The best investment I see is one Troy ounce, 31.1 grams, 99.9% Silver rounds. They sell for very little above the Spot Silver price, now $15.50, $40 not long ago. Silver dropped on a fake recovery, another Recession should double it. For small investors who have ebay for a broker, it has the lowest cost and least records. Half dollars are three for a contained Ounce, and about $7-$8. Dollars sell for twice silver value. Coin can be harder to sell, rounds sell for spot price.
I am defensive, but my silver has returned more than the market. Knowing I have a chance to get out of the city and hide out in the trees for months brings peace of mind. Sometimes I do practice runs, fleeing before a UFO attack.
My next plan is rural crop land with water, and soil improvement. Having a couple of acres ready to plant, is long term survival. I am working on becoming a hick.
Trump could point this country in a better direction, but even if it worked it would take decades to show results.
Our disaster potential is still growing, and will affect us for decades.
Choosing your own future seems possible.
02 Mar 2016, 2:37 pm
