America is next, mark my words.

Discussion in 'Economics' started by KINGOFSHORTS, Apr 27, 2010.

  1. Right now Treasuries are at a bubble state and the dollar is quite overvalued today. But we will end up getting slammed by Bond vigilantes soon and our 2 year Treasuries will end up with yields of 10+ %

    This stuff does not happen gradually, it will be a slam,bam! surprised just like every other bubble. Every pundit will mention how this was not visible in hindsight and that anyone can see bubbles after they have popped.

    We will be forced to print dollars attempt inflating ourselves out of debt which will bring about a Hyper inflationary equity bubble similar to what Zimbabwe experienced.

    I see this bubble bursting in about 3-5 years from now and mega inflation hitting. 7 dollar a gallon gasoline, Dow 30,000 etc..
  2. i agree, so make a few million in the next couple years and figure out a way to leverage yourself to the dollars demise.
  3. What happened in zimbabwe already started happening here a few years ago. Zimbabwe printed more and more money to pay their government employees more to keep them loyal at first. This is what has already started happening here.

    Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available."

    18 freaking months for 500% more people to start making over 150k per year???

    "When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000"

    What the freakin' Hell????

    Anyway...on a side note...I remember when the USSR collapsed and I saw all these people on TV waiting in line to buy a hunk of cheese that cost 1 months salary. I also remember seeing this doctor who was out on the streets selling kabobs. When asked why he was doing that and not working in the hospital, he said he made 3 times more money selling kabobs than he did at the hospital.

    All of you on this board have the luxury of time(well...a little bit of time anyway) to really research what happened with other countries that collapsed. The months & years before, the days before, during and after. Look at the eriee similarities to what is happening now. Go buy 10K or 20k worth of physical silver & gold now as an insurance policy. Worse case scenario, we have deflation and you lose about half the value of your metals(but no big deal because it still buys the same amount of crap it would when it was worth 10-20k. Best are sitting pretty to protect yourself, profit, trade for food, buy valuable items dirt cheap. Its practically a no lose situation. (unless you get robbed of course, but already are getting robbed, so no difference anyway.)
  4. charts


    Vote your opinion, then live with the outcome of the democratic elections ... or not ... :)
  5. S2007S


    The bubble is here however everyone will ignore it until well after the fact.

    And inflation is coming, don't believe the CPI numbers, they are alot higher than what they forecast them at.
  6. Lethn


    Anyone who is willing to listen will already know what is coming and has prepared for it, I honestly think the only thing keeping this scam alive is peoples' blind ignorance.
  7. Here is the primary risk of why frontloading the US Treasury with ultra-short holdings is just asking for a capital markets/liquidity/solvency/sovereign crisis. So far in April, the US Treasury has redeemed over $484 billion in Bills. That's nearly a half a trillion in mandatory cash outflows, interest payments aside. In April the cash out for interest expense will likely be one twentieth of this. What people don't realize is that the Treasury in April was down to just $9 billion in cash. Unless the UST can roll its debt not on a monthly but now weekly basis in greater and greater amounts, the interest rate doesn't matter. All it takes is one semi-failed auction and it's game over as hundreds of billions in bills become payable.

    ^^^^^ the above is courtesy of zerohedge and scary but true^^^^^
  8. Ben will pick up the slack.
  9. TGregg


    Next? Naw. Portugal, Spain, Italy, maybe some others first. I bet the US can hang `til 2011. We'll push some others out the door of the airplane before we bail.

    Kinda sucks to be in the generation just starting out. But since they are (as a group) big government types, it's hard to have any real sympathy for `em.
  10. clacy


    Yes, it's sort of ironic that the age demo that votes for Obama and the Dems in the highest percentages is the exact age demo that will be paying off all of this deficit spending for most of their working careers.

    If you're a 55 y/o boomer, you can handle a few years of higher taxes because for the most part you've already made your money and will soon be going into a lower tax bracket anyway.

    If you're 28 and you're primary earning years are ahead of you, I hope you're ok with paying 70% income taxes until you retire because that's what is headed your way. We're probably looking at 50+% income taxes for AVERAGE income earners ($45k+) in the next 5 or so years.
    #10     Apr 28, 2010