Financial Crisis

[jpinx]

Spain is well known to be riddled with corruptiuon. Russian mafia basically run the costas and while there have been several high-profile "hangings" of mayors (eg. marbella) to show that the government is "taking steps" it is way too little and far too late. What we see is the tip of the iceberg. Thailand's worst could learn some pretty tricks from the graspers in the political beaurocracy in Spain. Having lambasted Spain - now I am happy to say that Greece is actually worse !!

[midas]

concerned or unconcerned, what difference does any concern achieve?

for those who hold an " i am alright Jack " attitude........ nothing at all

do others get a kick out of it? i mean others besides you! that you get a kick out of it is a well known fact.

I'm not sure what you mean by “ getting a kick out of it “ but I do know that we we need to show concern pretty rapidly about the degree of criminality in the system.....or end up with nothing more than a whole lot of of Enrons, and WorldCom. Of course i could imagine " some people " not being bothered about that either.

Edited January 20, 2013 by midas

[midas]

Do You Want To Scare A Baby Boomer?

At this point, more than 10,000 Baby Boomers are reaching the age of 65 every single day, and this will continue to happen for almost the next 20 years. The number of senior citizens in America is projected to more than double during the first half of this century, and some absolutely enormous financial promises have been made to them.Medicare is facing a 38 trillion dollar shortfall over the next 75 years.

State and local governments are facing trillions in unfunded pension liabilities.

The Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. Meanwhile, nearly half of all American workers have less than $10,000 saved for retirement.

http://theeconomiccollapseblog.com/archives/do-you-want-to-scare-a-baby-boomer

[mccw]

Midas link raises important facts.

This crises is not about tweak this or fix that and we can return to proper "recovery" and happy day continue on like past decades of large growth followed by small contraction repaying itself on an upwards trajectory.

This Time is actually the end of the road of this western debt/ growth system. The "crises" is actually how to manage the decline of living standards and broken promises of pensions, welfare etc. money printing to meet the deficits has already been chosen as the solution (couple with only token efforts at cuts which actually only make more problem). We can expect 10-20 more years of this if its held together and value money and living standards dropping across the west. Asia will get sucked in too sooner or later. Inflation is of ever day essentials is already high, no matter what governments propaganda would like to have you believe.

[Naam]

Inflation is of ever day essentials is already high, no matter what governments propaganda would like to have you believe.

i am not aware of any government that foolishly denies that certain essentials (especially food stuff) show high inflation. what governments do is tweaking the official published inflation rate by continously changing the "basket", i.e. adding and/or removing items which provides the desired result to bullshit its citizens

[Naam]

concerned or unconcerned, what difference does any concern achieve?

for those who hold an " i am alright Jack " attitude........ nothing at all

do others get a kick out of it? i mean others besides you! that you get a kick out of it is a well known fact.

I'm not sure what you mean by “ getting a kick out of it “ but I do know that we we need to show concern pretty rapidly about the degree of criminality in the system.....or end up with nothing more than a whole lot of of Enrons, and WorldCom. Of course i could imagine " some people " not being bothered about that either.

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

[mccw]

Inflation is of ever day essentials is already high, no matter what governments propaganda would like to have you believe.

i am not aware of any government that foolishly denies that certain essentials (especially food stuff) show high inflation. what governments do is tweaking the official published inflation rate by continously changing the "basket", i.e. adding and/or removing items which provides the desired result to bullshit its citizens

I know; that's exactly the propaganda I'm talking about. Headline reads "inflation still under 3% so QE will continue and interest rates can remain low", while the actual inflation that matters to most of the population is easily in to double didgits.

[midas]

for those who hold an " i am alright Jack " attitude........ nothing at all

do others get a kick out of it? i mean others besides you! that you get a kick out of it is a well known fact.

I'm not sure what you mean by “ getting a kick out of it “ but I do know that we we need to show concern pretty rapidly about the degree of criminality in the system.....or end up with nothing more than a whole lot of of Enrons, and WorldCom. Of course i could imagine " some people " not being bothered about that either.

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

Jeez what a shockingly defeatist attitude!

So forget about just making more money for just one moment, (which I know you consider to be the most important thing on earth

) but have you ever wondered that in return for your continuing ability to participate in this farcical charade called “ markets “ (for now anyway)that you are simultaneously losing your freedom and liberty to these criminal forces in collusion with some criminal politicians?

Thankfully there are some people in the world who will keep posing the right questions

!

Edited January 21, 2013 by midas

[yoshiwara]

I'm not sure what you mean by “ getting a kick out of it “ but I do know that we we need to show concern pretty rapidly about the degree of criminality in the system.....or end up with nothing more than a whole lot of of Enrons, and WorldCom. Of course i could imagine " some people " not being bothered about that either.

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

On one level you are completely right but the permanent ranting and raving about the iniquities of the financial system are an essential part of the package peddled by the gold bug websites and copied and pasted by their forum acolytes. The model is that it is easier to sell the gold cult if the end of the world is a coming. So for them it is not a waste of energy. It is central.

[midas]

I'm not sure what you mean by “ getting a kick out of it “ but I do know that we we need to show concern pretty rapidly about the degree of criminality in the system.....or end up with nothing more than a whole lot of of Enrons, and WorldCom. Of course i could imagine " some people " not being bothered about that either.

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

On one level you are completely right but the permanent ranting and raving about the iniquities of the financial system are an essential part of the package peddled by the gold bug websites and copied and pasted by their forum acolytes. The model is that it is easier to sell the gold cult if the end of the world is a coming. So for them it is not a waste of energy. It is central.

Have you run out of medication for your Aurophobia again?

[Naam]

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

Jeez what a shockingly defeatist attitude!

So forget about just making more money for just one moment, (which I know you consider to be the most important thing on earth

) but have you ever wondered that in return for your continuing ability to participate in this farcical charade called “ markets “ (for now anyway)that you are simultaneously losing your freedom and liberty to these criminal forces in collusion with some criminal politicians?

Thankfully there are some people in the world who will keep posing the right questions.

-i consider myself a realist, not a defeatist and i care a flying fart what other people think of my attitudes.

-good to know that somebody knows what is most important to me because i can't make up my mind.

-with every additional cent i am making above those cents i spend i gain more freedom and more liberty.

free advice for you: take a crash course in basic logic and rational thinking. you surely need it! wailing does not solve problems.

[midas]

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

Jeez what a shockingly defeatist attitude!

So forget about just making more money for just one moment, (which I know you consider to be the most important thing on earth

) but have you ever wondered that in return for your continuing ability to participate in this farcical charade called “ markets “ (for now anyway)that you are simultaneously losing your freedom and liberty to these criminal forces in collusion with some criminal politicians?

Thankfully there are some people in the world who will keep posing the right questions.

-i consider myself a realist, not a defeatist and i care a flying fart what other people think of my attitudes.

-good to know that somebody knows what is most important to me because i can't make up my mind.

-with every additional cent i am making above those cents i spend i gain more freedom and more liberty.

free advice for you: take a crash course in basic logic and rational thinking. you surely need it! wailing does not solve problems.

Where are you going to spend your money If there is a societal breakdown and the conditions everywhere are like they were during Katrina and hurricane Sandy?

[kblaze]

midas - what do you think of the show "doomsday preppers"? have you seen it?

[Naam]

"some people" consider it futile and a waste of energy to bother about things which they can't change no matter how hard they try.

Jeez what a shockingly defeatist attitude!

So forget about just making more money for just one moment, (which I know you consider to be the most important thing on earth

) but have you ever wondered that in return for your continuing ability to participate in this farcical charade called “ markets “ (for now anyway)that you are simultaneously losing your freedom and liberty to these criminal forces in collusion with some criminal politicians?

Thankfully there are some people in the world who will keep posing the right questions.

-i consider myself a realist, not a defeatist and i care a flying fart what other people think of my attitudes.

-good to know that somebody knows what is most important to me because i can't make up my mind.

-with every additional cent i am making above those cents i spend i gain more freedom and more liberty.

free advice for you: take a crash course in basic logic and rational thinking. you surely need it! wailing does not solve problems.

Where are you going to spend your money If there is a societal breakdown and the conditions everywhere are like they were during Katrina and hurricane Sandy?

can't tell you how grateful i am knowing that you are concerned how i will spend my money

[mccw]

midas - what do you think of the show "doomsday preppers"? have you seen it?

I'll answer that question as well if you don't mind.

I've seen them all yes. Entertaining and interesting. It's funny the way at the end of each episode they have a little disclaimer type sound bit "but most economists agree a currency collapse is unlikely", but on the flue pandemic one they say "the World Health Organisation says its enevitable" but then later episode on same scenario the modify this to "it's enevitable but experts say its impossible to know its exact timing or severity", like that's making the prospect better.

Basically I was preparing for potential economic collapse before I heard about "preppers". I thought I was reasonably well prepared until I saw the series and was like, dam_n I'm not well prepared at all. Now we're about to change country and life to be as well prepared and self sufficient as possible.

My thinking has changed from seeing through a month or two of chaos to now a prosperity plan for a post peak resource world of indefinate high inflation.

[Naam]

lest we forget...

[mccw]

Not the end, the beggining of a new era of post peak fossil and mineral resources

I mean energy gained to energy spent extracting the fossils and there for the cost of every thing else.

There are other peak issues aswell like the peat and potash shortages; the unsustainability of modern farming practices. Fisheries depletion. Aquifer depletion.

Population growth,

Extreme weather impacting crops, yields.

Fragility of supply chains.

The list goes on and on.

Not end but adaption.

Getting preppared and ahead of the curve is better than getting swept along at the mercy of events outside of our control.

Edited January 21, 2013 by mccw

[Naam]

Not the end, the beggining of a new era of post peak fossil and mineral resources

I mean energy gained to energy spent extracting the fossils and there for the cost of every thing else.

There are other peak issues aswell like the peat and potash shortages; the unsustainability of modern farming practices. Fisheries depletion. Aquifer depletion.

Population growth,

Extreme weather impacting crops, yields.

Fragility of supply chains.

The list goes on and on.

Not end but adaption.

Getting preppared and ahead of the curve is better than getting swept along at the mercy of events outside of our control.

there won't be an adaption. if you don't believe me ask Midas!

[yoshiwara]

midas - what do you think of the show "doomsday preppers"? have you seen it?

I'll answer that question as well if you don't mind.

I've seen them all yes. Entertaining and interesting. It's funny the way at the end of each episode they have a little disclaimer type sound bit "but most economists agree a currency collapse is unlikely", but on the flue pandemic one they say "the World Health Organisation says its enevitable" but then later episode on same scenario the modify this to "it's enevitable but experts say its impossible to know its exact timing or severity", like that's making the prospect better.

Basically I was preparing for potential economic collapse before I heard about "preppers". I thought I was reasonably well prepared until I saw the series and was like, dam_n I'm not well prepared at all. Now we're about to change country and life to be as well prepared and self sufficient as possible.

My thinking has changed from seeing through a month or two of chaos to now a prosperity plan for a post peak resource world of indefinate high inflation.

Oh yes.....got to be prepared....

[mccw]

That we are past peak oil and other resources is fact. The effects of this fact are open to debate.

Mad max is more like a post nuclear or viral apocalypse accompanied by the total and permanent break down of government. A currency crash would be more like a month or 2 law and order issue with state asserting control taking measure to help, like rationing, new policy for new system etc. But the long term implications of resource depletion are what's really worth considering- what ever currency or system is in place. What does it mean for your investment, living standards etc etc 20 or 40-more years from now? Maybe Yoshi won't live that long so just don't give a dam_n, rather head in the sand and hope for the best, but by current probabilities I will and I have children to think about as well.

Edited January 21, 2013 by mccw

[mccw]

""""Powerful firms like Goldman Sachs have made hundreds of millions of dollars in food future trades. Critics accuse them of profiting off starvation and market manipulation, while traders claim their profits are due to increasing consumption in China.

World food prices tracked by the UN Food and Agriculture Organization (FAO) have more than doubled in the past 10 years. The FAOs Food Price Index, which baskets prices for five prime food commodities, peaked in 2008 and 2011, each time rising more than 50 percent from the previous year. The latest price spike was one of the key factors that triggered the series of uprisings in the Arab world resulting in the fall of several governments.

The year 2013 may see another price hike, following the worst draught in the US in 50 years and poor harvests in Russia and Ukraine. The UN has warned that the world may be approaching a major hunger crisis.

At the same time, the industry is bringing millions in profits to those who rushed to invest in food. Goldman Sachs made an estimated $400 million in 2012 from investing its clients' money in a range of "soft commodities," from wheat and maize to coffee and sugar, according to an analysis by the World Development Movement (WDM)."While nearly a billion people go hungry, Goldman Sachs bankers are feeding their own bonuses by betting on the price of food. Financial speculation is fueling food price spikes and Goldman Sachs is the No, 1 culprit," Christine Haigh of the WDM told the British newspaper The Independent.

The London-based organization along with similar NGOs like Foodwatch, Oxfam, or Weed (World Economy, Ecology and Development) have for years blamed financiers for inflating food prices, or for at least making the market dangerously volatile.

They argue that the amount of speculative money is too big in proportion to the physical inventories of the commodities. Deregulation in the late 1990s allowed financial institutions to bet on food prices, resulting in some $200 billion being poured into the market.

For example, hedge fund Armajaro virtually single-handedly sent the global price of cocoa to a 33-year high in July 2010 by buying around 15 percent of global cocoa stocks.

The overall effect of speculation on food prices is an issue of dispute. Influential analysts, such as US economist Paul Krugman, have argued that speculation is a marginal factor compared to rising demand from developing countries, as well as the expanding production of corn and maize for biofuels at the expense of foodstuffs.

Diagram from "The Food Crisis: Predictive validation of a quantitative model of food prics including speculators and ethanol conversion" By Marco Lagi, Yavni Bar-Yam, Karla Z. Bertrand and Yaneer Bar-Yam

A study by the New England Complex Systems Institute last year showed that the Food Price Index should only change if ethanol production had an impact. The study estimated that a 2008 ethanol price hike was largely due to speculation, while a 2011 spike was significantly fueled by investors.

Many financiers dismiss the accusations, and say they will continue bidding against food prices. On Saturday, Deutsche Bank Co-Chief Executive Juergen Fitsche told the Global Forum for Food and Agriculture that Germanys biggest lender will continue to offer financial instruments linked to agricultural products."Agricultural futures markets bring numerous advantages to farmers and the food industry," he said.

Others seem to be yielding to pressure. Last year, several German banks, including the second-largest Commerzbank, ceased to speculate on basic food prices for moral reasons.""""

-RT

It's annoying some stories are only on the app but not web

[mccw]

Lloyds and RBS face around £30bn capital shortfall according to BoE.

http://rt.com/business/news/bank-lloyds-capital-uk-119/

At least old Merv is telling them to restructure or sort them selves out this time. It's interesting and mostly unreported as a link but Halifax (several weeks total disruption) RBS (serval days) and lloyds (a few days), have has "IT problems" meaning accounts couldn't be accessed, standing orders not made and charges and DDs take multiple times in error. My suspicion is they actually had funding issues and in each case had to seek secret emergency funding from the BoE and "IT" is a cover story. Now Mervin in his final days is telling them to get a grip; but who knows what the new guy will bring. Maybe his "out of the box" banker "thinking will equate to printing a load of money and strait up giving it to the banks to recap them, again; wouldn't surprise me at all.

[midas]

Spain's bankers to strike as job cuts loom

As well as losing their jobs, workers at the likes of Bankia are being asked to take 40 to 50 percent pay cuts and many will see pension contributions halted for several years

Alarmed at the scale of cuts, employees from across the industry will demonstrate on January 23, while workers from Bankia, Banco de Valencia and NovaGalicia Banco will strike on February 6 and hold partial strikes before then.

http://www.reuters.c...E90K0N920130121

Edited January 22, 2013 by midas

[kblaze]

I think there is nothing wrong with some "preparing" for whatever you think could come around the riverbend.

I think the problem is summed up by the question "what is adequate preparation?".

Its a slippery slope. First you stock up some extra canned foods. Then you think about water; you stock up a couple months supply. Then you think no thats a pitiful amount, I need stocks that would last years; so you then find a way to get more water and food. Then you realize my house isn't enough, I need an alternative shelter/space/hideaway. So you spend however long it takes getting that ready. Then you think what about defense? You seek out guns/weapons/training. Then your friend from infowars.com tells you that you forgot to prepare _______. You take care of ________ but then you have to upgrade your ________ (garden/shelter/storage).

Just these things would take months/years to get in order if you are just starting prepping. How is your quality of life during that time? I can't imagine great as you are spending whatever extra money you have and probably harming some aspect of your social life, let alone that of your kids. You eventually become locked in an endless cycle of finding new things that you aren't prepared for or ways/situations in which your existing preparations are not adequate and need to be updated/refilled/upgraded.

Being totally prepared would really mean looking at every possible way you could be harmed. This is an impossibility because everyday people develop new ways to harm/destroy.

I think what I'm trying to say is that prepping can easily become a self-destructive obsession where you can "reason-out" the sacrifices you are making to your "real life" (i.e. "well if I don't build a collapsible bunker then I will die in a nuclear attack - is spending that money on a vacation to Thailand with my family worth being dead? no way - im gonna build the bunker").

I take a multi-vitamin everyday - I guess in a way its a "prepping" measure for my body. Maybe I don't need it, I don't know. But I know that the only sacrifice to my "normal life" that I have to make 30 bucks for the year and 15 seconds every morning to pour a glass of water and open a bottle.

Of course not all preppers sacrifice their normal lives - I'm just saying you have to be careful because it could start with puttin away a few extra bean cans and end up being selling your worldly possessions for an isolated mountain bunker in Montana where you subsist on lentils and river water.

[yoshiwara]

an isolated mountain bunker in Montana where you subsist on lentils and river water.

I think he's already there.

[Naam]

That we are past peak oil and other resources is fact

says who? the "World Oil Council" and the "World Other Resources Council"?

[mccw]

That we are past peak oil and other resources is fact

says who? the "World Oil Council" and the "World Other Resources Council"?

Your eyes if you open them.

Look at the energy cost it takes to extract the new sources of oil from tar sands, deep water drilling etc. You know that with the cost of oil everything rises.

gold- stil at record prices but the the miners shares are super cheap; why? Because the extraction costs don't leave large profits. We saw here many reports of restructuring and sales of mining assets by western companies to china.

Just one piece of many on potash and food-

http://www.forbes.com/sites/greatspeculations/2011/03/24/feeding-frenzy-for-ag-stocks-as-food-shortages-begin-to-bite/

Rare eaths- I believe we discussed here previously also. It's well know China controls much of the supply and shortages for western use are already being felt. Here's an article about the US trying to find ways around the problem through technology-

http://m.networkworld.com/community/blog/us-spots-120m-lab-tackle-rare-earth-shortages#mobify-bookmark

There maybe some rescourses like coal and iron ore that haven't peaked just yet but its a finite world and they will eventually. They're cost will increase though aswell from the oil effect.

[mccw]

K blaze.

I see what your saying, these are concerns and priorities everyone must make on thier own risk assessment.

For me the English prepping broke down like this:

Food - £2000

Water storage and havest system - £600

Defense- £3400

Fuel and heat- £1000

Other- £300

That's enough to see us through a prolonged period of chaos. For a bare minimum of a couple months back up food supply and £50 on a gas camping stove, easily £1000 would do it for food and water; just a bit extra on your shopping each week. No biggy. If you find the whole thing daunting so don't start and something does happen I making how terrible you'd feel knowing you could of/ should of done something about it.

I drew the line at back up elltricity supply. Would of been £10k up and not worth it. If you think about what you actually need and why its not nessarcary to get every item on ever prepper web site; nuclear bunkers and faraday cages etc etc

For us the choice was between bigger gold or silver stack or money in the bank. No life style sacrifice.

If some ones risk assessment leads to sacrifice that's an issue for the individual. Although we live relatively frugal lives with an eye to the future anyway. What's the quote? "Adversity maketh the man, .........

Moving back to Thailand is partly a lifestyle choice, investment and a prep. I am greatly looking forward to it.

Hoping the £ won't dive any more before I need to start transferring money.

Edited January 22, 2013 by mccw

[Naam]

That we are past peak oil and other resources is fact

says who? the "World Oil Council" and the "World Other Resources Council"?

Your eyes if you open them.

hmmm... right... indeed... there's the peak behind us

[midas]

If they can do it to the gunowners in America they can do it to the banksters in UK

good on Judge Julian Flaux .

I am sure the hundred staff members will have many sleepless nights worrying about their personal safety

Barclays staff linked to Libor-rigging to be named

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9816766/Barclays-staff-linked-to-Libor-rigging-to-be-named.html