Best time to start investing? Oh geez good luck to ya
But, the world is now more sophisticated and prepared to march toward a world government. The super-national sovereignty of an intellectual elite
and world bankers is surely preferable to the national auto-determination practiced in past centuries."
- david rockefeller
what problem would result in a "solution" stated above, where people would react and demand something be done?
the only thing i can think about that would bring the truama necessary for a "NWO" to come about would be a World Economic Financial Collapse.
Finance is the backbone of nearly every economy. HELLO?
The bankers organized a crash in 1929, to consolidate power, will the world's elite benefit from doing it again? honestly i don't know
We are talking about the Solvency of banks, they may go bankrupt. You want to take the chance investing in something that may go belly up a few weeks
down the road?
They are Panic selling to cover losses. So yes alot of the "money" does disappear because it was never there to begin with except in the "minds of
those who guessed what it's value" was based on the confidence investors had in these investments. "Money "supply is over 90% credit (loans
punched in on a computer screen) w/ the remaining 10% be thru the printing press. Now that people are losing confidence and defaulting and unable to
pay when "bets" go bad, "money" or credit should i say does indeed disapear.
And As Ambac and MBIA are insolvent and are the one's who are supposed to provide insurance for bonds that go under, no one knows where to run.
Credit is created literally from thin air, a few punches on a computer screen. It is fractional banking i.e you deposit 10,000 dollars and the bank
can lend out 9 times the money you deposited.
So when bank capital experiences a loss. i.e panic selling where people ar only willing to pay 25 cents on the dollar, indeed 75 of the credit (i.e
"money") did indeed evaporate. and then banks have to cut back lending by a factor of 9 for every 1 in capital they lose.
This is called credit deflation. For every loser there is not another winner, (unless you consider a winner the person who sold first and got 40
cents on the dollar instead of 20)
The world wide effects of this are rebalancing global currency's w/ the euro falling, and in turn bumping the dollar up a lil bit.
The bankers *may be foreclosing* on people's debt. The american consumer can take on NO MORE debt, the game may be up.
Or the gov't could step in and provide a giant Bail out to AMBAC and MBIA and in which case the economy would stabalize although the dollar and
other currency's would continue to fall.
other wise the conditions met for a police state will probably materialize and mass unemployment could result.
[edit on 21-1-2008 by cpdaman]