Deflation Ahead

Just watching things degrade... employment, business sales, prices of commodities, money velocity.

I am thinking the financial system is swirling around the toilet. It has been bad a few years, but we haven't seen anything yet. Government has been papering over the harsh realities.

So, what's coming next? I think we will see drastic amputation of non-performing assets. Layoffs, company closings, department closings, restructuring, cut backs. Store shelves will begin to get bare as the cost of stock becomes burdensome. Debt holders will aggressively repossess non-performing loan collateral in hopes of flipping it. Real estate will drop. Precious metals will drop.

Get out of debt- or have enough cash on hand to cover any debt, and try to put away an emergency fund. Think about critical items you might need and that could become scarce.

or borrow to the max, convert to physical, file bk with the masses? they will need 'help' and/or forgiveness

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Originally Posted by cheka.

or borrow to the max, convert to physical, file bk with the masses? they will need 'help' and/or forgiveness

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that is how you end up in a work camp. Get detached from the system. They will not let people just file for "forgiveness". The devil system is not into forgiveness.

No room for gasoline to raise?

@ Spectri.... correct you are, the Credit/Repo markets are front running the next recession in both overnight & long/short lending.... w/o credit facilities lending liberally, recession is a guaranteed event....

1936 was a peculiar year, for it was the first time in recorded history that a recession occured within a depression.... it was the credit/repo markets that terminated private short term lending when the Fed/Treasury removed stimulus that began 1933...

I am not going to argue that the "great recession" is actually a depression, for it is not a depression, YET... as the "liquidations" required for the term "depression" have been arrested (for now anyway). However, the neither the Fed, Treasury or private Credit Markets have been capableof producing credit inflation greater than previous credit creation.... thus we are trapped in a liqidity trap that was marketed as "THE" great recession, which for all the misinfo & propaghanda remains ongoing...

2015-16 will likely prove to be quite unique & peculiar akin to 1936.... For the very first time in financial/economic engineering, TPTB will have engineered a recession within a recession.... This is of course the best they can do to avoid a depression.... which is a seemingly "instant" liquidation of obsolete economic activities and businesses.... It appears to this observer that a series of recessions may be engineered to slowly & carefully liquidate the nonviable biz models thru the credit cycle....

Slowly engineering liquidations saves both the banking & body politic from major scrutiny & criticisms, meaning that a major liquidation (depression) and the unemployment that would follow would engender much public dissent over the so called "SYSTEM." However TPTB can avoid the dissent, criticisms, mistrust, etc. thru a series of drawn out liquidations rather than all at once.

Make no mistake, there will be liquidations, this is already well underway, as the credit/repo markets are NOW only lending to the very top tier capitalized viable borrowers... all others need not apply. This is the source of DEFLATION in our system.... JMO

^Yes.

Depressions lead to forced labour. It is better to avoid the "forced" "incentivized" work camps if at all possible. The Giver-ment often massages FACTs to indicate a more appropriate and acceptable scenario to the public.

A forced labour camp under some kind of New Deal might not be politically pallatable but being tough on crime could be. If the prison has an element of forced labour so be it. During times of economic depression, pressure can be relieved by being tough on crime. Of course wars also provide pressure relief amidst righteousness. This is always politically Double Plus Good.