posted
^ The value of the Dollar is going down. That means turn all your money into Euros, fast!!!
And get some bling (gold) while you're at it. Don't wear it on your teeth or neck though. It might get snatched and you don't want that.
Posts: 3423 | From: the jungle - when y'all stop playing games, call me. | Registered: Jul 2006
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posted
It is a whole lot of things coming together at one time.
One is the financial markets of the U.S. which is based around buying and selling of I.O.U.s, with the value of these items being based on some theoretical, highly complex nonsense about your likelihood of getting paid if you call in one of those I.O.U.s. Not only does this affect private finance and banking, but also the Government itself, as all American government funding is financed in this way. (In other words, if any of the large investors in U.S. bonds at the state, federal and local level called in their bonds, the government of the U.S. would go poof, because they don't have the money to pay. Similarly to how these banks and financial institutions are going belly up because they too didn't have the actual cash on hand to back up these paper products (derivatives) they were selling. ALL of this is directly a result of paper money not having any real value and the value being assigned by a network of international bankers who print the paper and "loan" it to the governments who issue it.
On top of that, there is the fact that the U.S. business model is fundamentally flawed. Much of it is based on exploitation or "slave" capital, where large multinationals find the cheapest workers they can find to make products that they sell at a profit. As long as labor stays cheap they are fine, but inevitably cheap labor gets less and less cheap and harder to find. So then what? Many corporations are already running on thin margins in the U.S. because they are competing with each other based on price. This means that they cannot really afford to raise prices too much or they will be undercut by the competition. Many industries are suffering because of this and the fact that their finances to stay in business are so high that they have to go in debt to stay afloat. So you have large multinationals with thin price margins with offices in many parts of the world who are treading water or just getting by who really cannot shoulder a significant drop in consumption of their products. When this happens, as a ripple of job cuts, inevitably these companies will shrink or go under.
But the thing is that these forces and these factors have been at play for a very long time. American companies have been folding since a peak in WWII. All across the spectrum of the American marketplace businesses have been closing for the last 100 years. There have been many bubbles, like the internet bubble that burst 10 years ago, to the Detroit car bubble that burst 50 years ago, to the American steel industry bubble, the Savings and Loan Bubble, the Airline bubble and so forth.
What has kept America going throughout all of this is the fact that they have been making commodities out of I.O.Us and it is precisely this system of I.O.Us that is coming to a halt. That is what makes the whole thing so dangerous why it has such a global reach, because SO MANY international players have bought into it. So what happens if the I.O.Us of the U.S. are deemed worthless? That is what is the issue here.
Posts: 8898 | Registered: May 2005
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posted
Tough times lay ahead for the American people.
The world will adjust and many of the poorer countries will barely notice it. It may even open up opportunities for enterprise in the developing countries that were not so feasible before this current meltdown.
Posts: 525 | From: Terra | Registered: Oct 2008
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posted
Unfortunately all the socialist policies our debauched policy makers are creating definitely have weakened our economy and making us like Europe's (no offense to all you Europeans).
Posts: 26307 | From: Atlanta, Georgia, USA | Registered: Feb 2005
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quote:Originally posted by HuggyBear: Tough times lay ahead for the American people.
The world will adjust and many of the poorer countries will barely notice it. It may even open up opportunities for enterprise in the developing countries that were not so feasible before this current meltdown.
What's happening in America is the exact same thing that happened in Russia. A few dozens highly placed thieves (families) are stealing everything in sight.
The whole world economic structure is built on a house of cards, the Jewish inspired; debt based economy. I don't know what country you're in, but where ever, you'll feel the effects as the cards come tumbling down. The estimate is the full downturn will peak in 2010 when 5,000,000 US homes will face foreclosure.
Posts: 3595 | From: Moved To Mars. Waiting with shotgun | Registered: Dec 2006
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posted
The effects will be felt only by those who depend on the system.
Those who understand the system and use that knowledge correctly actually benefit when things come tumbling down because they are in the optimal position to take advantage of the crisis opportunities.
In the case of developing countries, things won't change much for the locals who already can't depend on "paper money" for sustenance and have long found ways around it.
It is the pets of the nanny states, the middle class of the Western world that will bear the brunt of the pain.
Posts: 525 | From: Terra | Registered: Oct 2008
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