Are we in a deflationary collapse right now?

Bretton woods according to this chart has been collapsing since late 2007.

Attachment 4696

Thank goodness for positive Bitcoin drones.

Common sense says that cash is king. And paper cash is better than digital cash. But I don't think you should go 100% cash. There is always a risk of a currency devaluation or default - an entire issue is cancelled or devalued. While I don't think that is likely for the dollar, I still think that after providing for healthy cash flow and a minimum of 6-12 months expenses in cash you should diversify into the 4Gs, just in case TSHTF: guns, gold (& silver), grub and guns.

Uberkitty's chart says it all: we have hit maximum potential/rate of credit expansion and the Central Banks are printing furiously to prevent a free-fall collapse of credit. It seems inevitable that they will eventually fail and the bottom falls out (deflation). Alternatively, the Central Bankers could call an emergency meeting and announce a massive coordinated QE to double the monetary base a la Japan (inflation). The problem is that the latter is like monetary Chinese food - after a while you're hungry for more credit money. In the end, it looks like deflation is inescapable. Anyone disagree?

if there's only W in the Vault

we must Default.


W being the chemical symbol for Tungsten.


and when they do default, it will be called "Something Something Something Reform".

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Originally Posted by mamboni

Common sense says that cash is king. And paper cash is better than digital cash. But I don't think you should go 100% cash. There is always a risk of a currency devaluation or default - an entire issue is cancelled or devalued. While I don't think that is likely for the dollar, I still think that after providing for healthy cash flow and a minimum of 6-12 months expenses in cash you should diversify into the 4Gs, just in case TSHTF: guns, gold (& silver), grub and guns.

Uberkitty's chart says it all: we have hit maximum potential/rate of credit expansion and the Central Banks are printing furiously to prevent a free-fall collapse of credit. It seems inevitable that they will eventually fail and the bottom falls out (deflation). Alternatively, the Central Bankers could call an emergency meeting and announce a massive coordinated QE to double the monetary base a la Japan (inflation). The problem is that the latter is like monetary Chinese food - after a while you're hungry for more credit money. In the end, it looks like deflation is inescapable. Anyone disagree?

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No. And the end of a currency can be a haircut of up to 100% but no matter how much, there will be a haircut. If a new currency, new dollar comes in it's place any exchange new for old, will be in the bankers favour.

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Originally Posted by mamboni

I still think that after providing for healthy cash flow and a minimum of 6-12 months expenses in cash you should diversify into the 4Gs, just in case TSHTF: guns, gold (& silver), grub and guns...Anyone disagree?

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I never bought into the silver thingie, but I did buy my AGEs at $560. Today, my 4 would be grub, ammo, guns, then maybe more ammo.

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Originally Posted by Jewboo

I never bought into the silver thingie, but I did buy my AGEs at $560.

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Nobody would've expected anything more from a statist... :p

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Originally Posted by Glass

No. And the end of a currency can be a haircut of up to 100% but no matter how much, there will be a haircut. If a new currency, new dollar comes in it's place any exchange new for old, will be in the bankers favour.

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In a deflation, two groups are wiped out: superrich and debtors. Virtually all super rich (billionaires) operate on leverage and credit. If the music stops, they fall out of the economic stratosphere to hard reality. Debtors, the poor and the struggling middle class on rotating credit, get trapped in unpayable debt. At best, the debt is cancelled and they go to zero. Who wins: people with net positive worth in cash and hard assets, assuming the cash isn't siezed (bank holiday) or devalued/cancelled (currency collapse). In short, the frugal, hardworking, live-within-their-means productive middle class and a few old money goldbugs/landowners are the winners in a deflationary collapse. This has got to be a huge conundrum for the banksters because such an outcome is totally unacceptable. Yet deflation, like a black hole's pull, seems inescapable and inevitable.

What to do? What to do?

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Originally Posted by old steel

It could always be worse.

http://www.youtube.com/watch?v=hOiePQYFzLA

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That blast was a nice cap to those morons yelling incessantly allah akbar. All their videos have those idiots screaming it as if it will do them some good. Wait till they find out allah is Satan ramming a pitchfork up their asses.

ed= I just went frame by frame.... you could see the back guy get his face blown off!
...and there is a part 2 showing the poor sucker on his last beats. War is hell.


Deflation? Well... the only printing is to support government spending. Remember the "stimulus" checks Obongo experts sent out a few years ago? Where are they now? Instead, trillions of dollars were wasted by Oboingo and Bushee on building an army against America and sending supplies to our enemies around the world. Our manufacturing is gone. Our technology advantage is gone. Our superior firepower is gone. And all we have left is a halfrican nigger illegal alien set up as the puppet prince of Amerika, changing this once great nation into a communist deathkamp.

http://www.youtube.com/watch?v=1X2JP80Y0QY

Throw your thoughts back many years
To the time when there was life with every morning
Perhaps a day will come when the light will be as clear as on that morning