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Oct 21, 2009

Hyperinflation...Recovery is Temporary


The recovery that we are all witnessing is only temporary.
What will happen when interest rates come back up - if they come back up?

Oh me, oh my! We are going to watch a further erosion of real-estate prices on a massive scale as homeowners are forced to pay even more than they already can’t afford. If and when this happens, then real-estate prices will take a further hit as yet more foreclosured properties get pumped into the already saturated market with even less able-buyers available to pay for these low quality, exhorbinately overpriced, wasteful, energy in-efficient properties. If you thought that subprime was bad, I strongly suggest that you take a look at the Suisse bank chart on the impending re-sets. If interest rates stay low long enough for a few small businesses to get some loans (to expand and make products no one can afford) and more borrowing and more money gets created out of thin air then inflation will kick in sending commodity prices higher - and probably to the moon. The dollar is at 65 cents now....

And, in addition, General McCrystal of the US Army came out saying that the war effort in Afghanistan is probably un-winnable for the coalition forces under current conditions. Obama must already know this and frankly, there is little or nothing this puppet president can do to make a difference in the eventual outcome there either. This means that oil prices will likely rise. When oil prices get high again as they certainly will over time, the picture looks even grimmer. It basically guarantees that there will be more people opting to pay for gas and food instead of their outlandish real-estate prices (or health insurance). This equals lower real-estate prices. When the US is forced to concede in the middle east, then it is game over for America. Obama will be weak, we will lose the dollar.

It is a lose-lose scenario for the over-extended middle class. Starry-eyed and with hope, they’re looking off into the distance and can see a light that seems to be getting brighter and brighter. Don’t they know who they are? Credit junkies and they’re looking for another quick fix. Don’t they know where they are? They’re stranded on a train track. Unbeknownst to them, the light they see as their saviour is only that of an oncomming locomotive that is fast headed their way. It isn’t going to stop either. A lot of people are going to get wiped out by the upcoming collision. The homeowners are going to get wiped out. And the small businesses and banks are going to get wiped out too. There seem to be several options available to the masses, to those who are not faint of heart. The options are, wait it out and face the music and deal with the calamity as it evolves. Or, sell now, pay off debts and convert some cash into silver and gold and rent or buy somebody else’s devalued real-estate, cash down,(spend it while it still has some value) then store as much food as you can or leave the USA altogether.

When our friendly Chinese loaners dump their dollar, demand their money back, that will be the trigger. This is the reason to have part of your assets in gold and silver as today is basically the beginning of the end, the beginning of hyper-inflation and the end of the dollar and the end of ”the American dream”. We have run out of time. Who will pay most dearly? The middle class. They are the ones who are stuck, stuck on the tracks. They are the ones trying to pay down their debts so they can get some gold and silver....too late. Train wreck. They will be the ones who start rebelling and panic will set in as they see that their only way to survive will be to take matters into their own hands. A new nation will be born. And gold and silver will be the the only backing for ANY financial transaction. The US government cannot control this. The US government is theoretically bankrupt and now the FED’s days are numbered as well. The sinking of the FED will signal the end of the 25cent US dollar and the end of the US government and along with it the social system we pride ourselves for believing in. Our founding fathers warned us! The People of America who went into debt with Bush and who were too lazy to challenge Obama’s policies, forgot what a sweet deal our ancestors built for us. They forgot their history and they failed to learn their civics lessons. Wake up people, the barbarians/foreigners are at the gate.

Forget the stock market! This is a different kind of crash. There is a coming collapse based on an unexpected, for most, shocking event yet this year. Get ready for something you have never seen, and when it hits, shock and awe will stun even the strongest in America. It will lead to fear, chaos, collapse, and even a coming famine as the system breaks down. Get ready for what most do not want to think about. The strike is ready, and the clock is ticking.

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