There will be a new world currency soon and it will not be the USD. People are fed up of the US currency and the strong arm tactics the US has used in the past to force countries to trade in its currency. This time this new world currency will not be backed by a military but by something much more substantial – GOLD.
Expect this currency to originate in an Arab country and will be backed by gold, if not fully at least partially. Dubai is looking to become the gold trading capital of the world and it will be a win win situation for them.
The US will not like this, however, they are currently being placated by military arms contract to keep them happy. The entire world have been conned and coerced by the US but they will take it no longer. Why would anyone believe the country that ripped them off will now all of a sudden become honorable? Not gonna happen!
These same countries that got us into this mess are meeting to come up with another world currency to force down the throat of victimized countries. The currency they want to create still has no gold backing, do you believe that the countries who have been victims will accept this? No way!
They are just standing by to tell these countries thanks, but no thanks. Word is that Europe will be divided, one block of countries that will have a partial gold backing and the other half (crooks) with no backing. Also, the Gulf Dinar will be gold backed.
Yes the world is changing and the US will no longer be at the top, they will go through some very tough times and will never be the same. Expect the USD to tumble, it is making its last fight and then that’s it.
Diplomacy and brains will be better for this world than brawn and idiocy. Welcome to a better new world after it is all said and done.
Friday, October 24, 2008
Sunday, October 19, 2008
She will be loved.
This is my version of this song. I started out doing it like the original song, however, in the process I changed it up and came up with this version of it.
Monday, October 13, 2008
Darker clouds ahead
I generally take a dark view of the current global financial situation based on the facts at hand. However, after thinking about the financial crisis we are in, even I was not ready for the cold dark reality of what could possibly unfold before it is all said and done.
Many, who know me, say that I am too pessimistic and doom and gloom, some even thought I was nuts. Earlier this week a colleague of mine said:
“You know, when I met you one and a half year ago I thought you were nuts, but, now I know you were ahead of the crowd”.
What he was referring to was my view, since back then; that the financial system will collapse. As you can see my blog is filled with the essays I have written about the crisis even before it became one. Well last night, after looking at some additional data, the cold dark reality hit home for me even harder; things may get much worse than even I, “Mr Darkness”, thought possible.
I expect:
The financial system to almost totally collapse, this is already happening.
Many more banks to fail
Some industries to grind to a halt
Massive unemployment
Wide spread poverty
Food shortages
Governments to basically go bankrupt and services to be at a minimum at best
Utility companies will not be able to reliably deliver products and services
Blackouts and brown outs
Massive Riots
Martial law declared in many cities
This could all unfold within the next 5 to 7 years. Many of these problems will result from the global real estate bubble, estimated at $30 Trillion, collapsing. I thought that was the biggest problem however, the derivatives market is even bigger, estimated to be about $54 trillion, when this starts unraveling in a big way then the dark clouds will really descend upon us.
There is, however, one saving grace and that is the compassion of the wealthy and ruling class, if they are willing to give up 25% of their wealth for the benefit of the poor and working class then the impact will not be as bad. The ball is in their court; let us see if they are human after all.
Many, who know me, say that I am too pessimistic and doom and gloom, some even thought I was nuts. Earlier this week a colleague of mine said:
“You know, when I met you one and a half year ago I thought you were nuts, but, now I know you were ahead of the crowd”.
What he was referring to was my view, since back then; that the financial system will collapse. As you can see my blog is filled with the essays I have written about the crisis even before it became one. Well last night, after looking at some additional data, the cold dark reality hit home for me even harder; things may get much worse than even I, “Mr Darkness”, thought possible.
I expect:
The financial system to almost totally collapse, this is already happening.
Many more banks to fail
Some industries to grind to a halt
Massive unemployment
Wide spread poverty
Food shortages
Governments to basically go bankrupt and services to be at a minimum at best
Utility companies will not be able to reliably deliver products and services
Blackouts and brown outs
Massive Riots
Martial law declared in many cities
This could all unfold within the next 5 to 7 years. Many of these problems will result from the global real estate bubble, estimated at $30 Trillion, collapsing. I thought that was the biggest problem however, the derivatives market is even bigger, estimated to be about $54 trillion, when this starts unraveling in a big way then the dark clouds will really descend upon us.
There is, however, one saving grace and that is the compassion of the wealthy and ruling class, if they are willing to give up 25% of their wealth for the benefit of the poor and working class then the impact will not be as bad. The ball is in their court; let us see if they are human after all.
Monday, October 6, 2008
The Greater Depression
The huge bail out passed by the US government in an attempt to stave off disaster and a possible depression will not work; why would the same thing that brought us here now get us out of it? Not gonna happen
What brought us here is the easy money policy that the US has practiced for years, and as we all know too much supply with not enough demand leads to failure. There is just too much US currency (IOU) in the world and none of it has any fundamental backing. The US is headed for failure and life as we know it will never be the same in our lifetime.
In the great depression the government did not provide liquidity quick enough, according to the “experts”. Now they are acting very quick and injecting as much as is needed. However, IMO, the end result will be the same.
By not acting quickly enough, it is claimed that credit came to a halt and the financial markets and economy halted during the great depression. Now, the pundits say that we need to inject liquidity as quickly as possible to avoid the same thing happening. There is however one big problem with that:
0% liquidity – 0% inflation = 0 (great depression)
10% liquidity – 10% inflation = 0 (currently)
The bottom line is that no matter how the US Fed or government slice it or dice it; it amounts to the same thing.
For those who may not understand inflation I will express it as I see it:
Inflation is not the increase in price of goods, instead, that is a result of inflation. In fact, there is only one kind of inflation and that is monetary inflation. Any increase in the money supply without any backing amounts to the roughly the same amount of inflation.
Therefore, in the great depression people had little money but it was probably worth something because of deflation. However, now people will have money or access to it because of an increase in the M3 supply but it will probably not be worth as much as it did during the great depression because of monetary inflation, possibly leading to hyperinflation. We will then end up in the same place at best and the current crisis will come to be known as the greater depression.
What brought us here is the easy money policy that the US has practiced for years, and as we all know too much supply with not enough demand leads to failure. There is just too much US currency (IOU) in the world and none of it has any fundamental backing. The US is headed for failure and life as we know it will never be the same in our lifetime.
In the great depression the government did not provide liquidity quick enough, according to the “experts”. Now they are acting very quick and injecting as much as is needed. However, IMO, the end result will be the same.
By not acting quickly enough, it is claimed that credit came to a halt and the financial markets and economy halted during the great depression. Now, the pundits say that we need to inject liquidity as quickly as possible to avoid the same thing happening. There is however one big problem with that:
0% liquidity – 0% inflation = 0 (great depression)
10% liquidity – 10% inflation = 0 (currently)
The bottom line is that no matter how the US Fed or government slice it or dice it; it amounts to the same thing.
For those who may not understand inflation I will express it as I see it:
Inflation is not the increase in price of goods, instead, that is a result of inflation. In fact, there is only one kind of inflation and that is monetary inflation. Any increase in the money supply without any backing amounts to the roughly the same amount of inflation.
Therefore, in the great depression people had little money but it was probably worth something because of deflation. However, now people will have money or access to it because of an increase in the M3 supply but it will probably not be worth as much as it did during the great depression because of monetary inflation, possibly leading to hyperinflation. We will then end up in the same place at best and the current crisis will come to be known as the greater depression.
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