A Nightmare Before Christmas

A Nightmare Before Christmas

This is a commentary i found by Peter Schiff, an economist from Euro Pacific Capital, Inc. He's also a finanical advisor to Ron Paul as i'm sure MANY of you know. It was posted on the 15th. I did not see a topic for this so please forgive me or delete if needed.

Last weekend Barack Obama announced his intention to implement a New Deal-style stimulus and public works program. What he somehow forgot to mention is that the United States is wholly dependent on the willingness of foreign creditors to supply the funds. But a weakening dollar makes continued foreign purchase of U.S. Treasuries a much more difficult decision.

Once the dollar begins to collapse beneath the weight of all this new deficit spending, accumulation of contingency liabilities, and the socialization of our economy, commodity prices and interest rates will head skyward. In addition, once all the going out of business sales at U.S. retailers are over, and excess inventories have been reduced, watch for big price increases at the consumer level as well.

Link for full article: www.fxstreet.com...

I think we all know that everything is crumbling and falling apart. I honestly believe that there is really no easy way out of this mess and that people thinking that there is are dreaming.

When the first banks started to fail, i remember telling people that i know and work with that things were going to get tough. Most everyone told me i was just being paranoid or basically blew me off. They are starting to come around now though.

The system (government) is nothing short of corrupt and full of imbeciles. Unfortunately, it has yet to get bad enough for the people of this country to get angry enough to do something about it. They hope against hope that our so called government leaders can fix this mess when they can do nothing of the sort.

This is my first post and thread that i've done in awhile. Lately have tried to give myself, mainly my brain, a rest from all the madness. But i am back now and i look forward to discussing topics with you all once again.

[edit on 16-12-2008 by David9176]

another article i'd like to add:

Doomsayer still grim on future

CHICAGO - People aren't laughing any more at the way-out-there predictions of Peter Schiff, whose long-standing pessimism about the economy and stock market has been largely borne out.

I don't know if any sector will do well. But ultimately, whether it's going to be 2009 or whenever the turnaround is going to be, I think the only sectors of the U.S. economy that are going to improve are going to be those that are related to exports - manufacturing, mining, energy, agriculture, commodities-related businesses. I think the slowdown in the global economy will be short-lived. But I think the U.S. depression is going to be with us for a long time. How bad do you think things will get? Tens of millions of people unemployed, inflation spiraling out of control, the government instituting price controls that result in shortages and blackouts and long lines for things. I think things are going to get very bad.

Link: www.poughkeepsiejournal.com...

Hmm...he doesn't predict a good future for the good ol' US of A. Could we really expect to live so high on the hog forever?

Once you reach the top...the only direction you can go is down.

I just don't see how you can make people start buying things again so that companies and factories can start producing things again and keep and hire workers who in turn will have the money to buy product. It's just a cycle that isn't happening anymore. What could possibly stop this?

We are living in frightening time, no doubt about it.

What is the real timeline for the huge economic panic many of us feel is "just around the corner"? I have been hearing guesses that February 2009 will be when it really hits the fan. Obviously, no one knows for sure, but I would like to hear from ATS people who are in the financial world as professionals to let us know what the intelligent consensus is between you guys and your peers... what is the talk around the coffee pot among your peers, those in the know... what is the timeline? February 2009 after the inauguration honeymoon begins to die down?

What about the untold trillions in derivatives and swaps that are still out there... when will all of that go down and how fast will it collapse everything? Any ideas?

reply to post by David9176


Getting rid of the Federal Reserve would help to stop this.

Allowing Congress to print our currency debt free could help too...

But figuring that the Federal Reserve runs America, I don't see them going anywhere anytime soon.

reply to post by switching yard

What is the real timeline for the huge economic panic many of us feel is "just around the corner"? I have been hearing guesses that February 2009 will be when it really hits the fan.

My guess? We'll be fine till Jan 1, 2009. We'll make it through the holiday season, after that it could be any day. I truly believe this will be the last good Christmas many of us will have. It makes me worry...A LOT.

I have a little one on the way....due in July. What kind of world could i be bringing my child into? I hope it's a better one than what i see coming. What if I'm not working then? I swear i can almost see my hair falling out on some days.

reply to post by dalan.

Getting rid of the Federal Reserve would help to stop this.

But how can it be stopped? I hate to say it...but it seems we are on the economic version of the Titanic. We can throw things out of the boat to stay afloat...but the boat will still sink. We can jump out of the boat but that is a deadend as well. All that is left is to stay on the boat....that will sink..and take us all with it.

I sure as hell hope i can find a piece of wood to float on!

Lol.

Seriosuly, the way you worded that made me feel a lot less anxious.

reply to post by dalan.


Lol. Glad i could help.


I get anxious as well...and nervous...and downright angry....mainly because i know that there is really nothing i can do about any of it. Sometimes it just doesn't matter how loud you can scream if no one wants to hear you.

What is most important though is that I do hope everyone can come out of this disaster safe and sane.