Sum of all Fears

[cottonpicken]

http://www.theglobeandmail.com/report-on-
business/commentary/neil-reynolds/the-scary-
actual-us-government-debt/article1773879/print/


A new round of qe in the works,gold freaking
out,worlds reserve currency tanking.

[parsley]

Only those who follow the money, who read, will understand what is happening. The rest will find out on November 3, the day after the US Senate election, what bankrupt really means.

But the worst nightmare is that those citizens who want to destroy capitalism, and who hate the very capitalist country they live in, will use these hard times as an excuse to begin rioting, to begin destruction, to begin revolt. Pars

[ado089]

When are the markets going to reconcile the fact that these measly GDP growth numbers are infact negative in the real world with the QE and stimulous factored in?

[parsley]

Gold is rising. Up significantly today. There won't be panic before the election on Tues. But the ROP will gain seats, Obama will retire for comfort in some mosque, and the Democrats will scream nay during any subsequent voting.

The only option left, is to print money.

Hence gold.

Real things like grain will have worth. Paper promise will be worth a fold and wipe.

When I made my bet for high interest rates with Bill Duke for October, I thought the US elections were a bit earlier. I'll pay him tho. A bet is a bet. But I still have 2 days in October.

But interest rates, IMHO, are gonna screech up. Cott when do you think they will take off?

Pars

[cottonpicken]

THE Scenario i believe is going to happen is that
overnight the us dollar will be devalued by 75% at
some point in the future.

[parsley]

The US dollar is going to sink but not yet for awhile. UN salaries can't afford that to happen!

Interest rates in Canada for farmers is what I was thinking about.When do they start to spike?

A bad harvest two years running and operating loans gone wild are a bad combination.
Pars

[mbratrud]

Anyone care to bet on how many years before the price of a new combine with header reaches $1 million? I say 4 years.

[riders2010]

This coming from a nobody in the economic world, but in my opinion when is the amount of debt on the ordinary people that buy all those goods produced by the capitalist be recognized to represent the imbalance of wealth between the dissapearing middle class and the super wealthy. The banking crisis was not the cause it merely showed what is happenning.
Now some will say that those people are living beyond their means, and maybe so in this situation, but if all those people didn't buy the economy would be much less than what it is, so there really is a false economy occurring.

Capitalism is the greatest system but when it reaches the point where so few control the wealth and industries how far away are we from the communist system where the government controls everything, not very far!

[cottonpicken]

The bond market is what regulates the interest
rates,the banks are obliged to follow it.

Enter QE(quantitative easing).

The feds are printing money to purchase debt to
keep the system up.

Im actually glad they are doing this because if they
where not you would have 20% interest.

Think of the ramifications of that.

Most people flat broke
Tax base destroyed
Federal government broke
provincial government broke
busnesses over taxed and broke
local governments broke
pensions gone
medicare broke and gone
banks boke

And the whole populous walking around scratching
their heads wondering why the government isnt
giving them their handouts that most everyone has
come to expect and demand as their god given right
to have.

[furrowtickler]

So will grains/oilseeds going to follow the same path as '08 and lose 50% of their value if or when SHTF? Do we lock in our production now at profiatble levels and let fert price crash come spring? Just thinking on a basic farm level and how it will effect us or will it?

[parsley]

true.

But would even a loyal friend buy another bond if you knew the guy actually owned squat all? He lied about his assets? Lied about his debts?

Or am I being old fashioned again?

When loyalty is not valued, even the loyal cut their losses ... right? Pars

[furrowtickler]

To add to mine - use the profits to pay down debt ASAP?

[checking]

There is the contrary speculation to the one you suggest that indicates the US can stand another phase of QE, or QE2. It states that the fed. servicing the 2010 debt is less than doing the same in 2009, and servicing the 2009 debt was less than the 2008 debt.

Place a second wager with Bill on inflation. My guess is that he will double down in yet another October end.

[workboots]

banks are not lending. i wouldn’t worry about hyper inflation tomoro. Inflation occurs when economies are growing rapidly. If the U.S. dollar drops a little bit, sure exports will be stimulated, econ numbers will look rosy and dollar will recover from that. its like a nice balancing act. These grain prices are demand driven but there is mega speculation contributing, and commodity prices have always been cyclical.

Overproduction can still occur; globally we are still capable of this! let not get over excited, an unwinding is a real possibility in the next year.

Greed and over optimism can fog our thought process.

lots of doom sayer make a living preaching about the end of the U.S. dollar and economy. People are naturally attracted to listening to these guys, it’s a psychological thing.

Its over exaggeration..

SOMETHING BAD, OH NO EVERYONE LISTEN TO ME, and maybe buy my book or perhaps become a client, BUT QUICK BEFORE THE END OF EVERYTHING.

[parsley]

Trust me, the books I'm writing are not about numbers!

LOLOL

I listened to your same words in the 80's.

Pars