This economic meltdown is no accident folks

[utilitarian]

IMHO:

The "collapse" is an orchestrated event to sell the idea of the new Amero which will be 1 Amero to 2 old dollars. This is also the reason that US$ and CA$ are hovering around unity.

Only the top of the pyramid benefits in a pyramid scheme.

Why do people keep talking about a collapse.  There is no collapse.  We had a stock market and housing market corrections, and some banks made some bad bets and are now going under.  Thee are plenty of banks still around.  There will be no depression and no collapse.  There may be a recession, but it won't be like after 1929.  These are not the same times, and to compare them is gross oversimplification.

[Yucca]

Why do people keep talking about a collapse.  There is no collapse.  We had a stock market and housing market corrections, and some banks made some bad bets and are now going under.  Thee are plenty of banks still around.  There will be no depression and no collapse.  There may be a recession, but it won't be like after 1929.  These are not the same times, and to compare them is gross oversimplification.

I fear that you are grossly oversimplifying the situation.

There are indeed many differences between the current debacle and what transpired in 1929. For one the US$ is now purely fiat, absolutely zero asset backing. Also as obligations are defaulted, there is currently no firewalls or safety measures in place, no stop losses whatsoever due to zero assets. You must bear in mind that current day derivatives markets are VERY highly leveraged and finely tuned, one default HAS to and WILL cascade to cause other defaults and so on, that's just the maths pure and simple. Printing ones way out is just inflation dressed up to look otherwise.

The only solutions I can see to the current problem is to allow collapse and "free" market to sort winners from losers (unlikely as even the final "winner" will have net losses) or complete nationalism/communism i.e. one state bank, the books for which will not be disclosed. Either way it doesn't look good for the dollar, wheras changeover to Amero will give the illusion of a new beginning and it will allow the game to proceed again as it already has for a few more years, but it will strip every citizen of half their wealth unless they have the foresight to hoard commodities and keep them safe.

I'm intersted to hear some substance to your argument, I really am. And don't get me wrong, I am not hoping for economic meltdown, but at this point it looks inevitable and it also looks perfectly orchestrated. The pyramid on the dollar bill with the eye of horus at the top is not just a coincidence.

I suggest you do a little reading about the history of money, then you will see how systems that seperate themselves from assets will ALWAYS fail, they always have throughout history. Just because the dollar has been given the sheen of Hollywood does not make it impervious to this inevitable rot. When the large holders accelerate diversification out of the dollar then we will really start to see the "collapse" and that is already happening. Chinese central banks are talking alot about diversification out of (dumping) the US dollar. The more dollars get printed the harder the final fall.

[Carbide_Tipped]

The REAL REASON For The Bailout.

http://www.youtube.com/watch?v=GqIFoBXGizc

[z.monkey]

Howdy Carbide_Tipped,

Good information.  $700B, that's a lot of greenbacks.  I would hate to have that go into foreign, potential enemies hands...

Blessed Be...

[utilitarian]

I fear that you are grossly oversimplifying the situation.

There are indeed many differences between the current debacle and what transpired in 1929. For one the US$ is now purely fiat, absolutely zero asset backing. Also as obligations are defaulted, there is currently no firewalls or safety measures in place, no stop losses whatsoever due to zero assets. You must bear in mind that current day derivatives markets are VERY highly leveraged and finely tuned, one default HAS to and WILL cascade to cause other defaults and so on, that's just the maths pure and simple. Printing ones way out is just inflation dressed up to look otherwise.

The only solutions I can see to the current problem is to allow collapse and "free" market to sort winners from losers (unlikely as even the final "winner" will have net losses) or complete nationalism/communism i.e. one state bank, the books for which will not be disclosed. Either way it doesn't look good for the dollar, wheras changeover to Amero will give the illusion of a new beginning and it will allow the game to proceed again as it already has for a few more years, but it will strip every citizen of half their wealth unless they have the foresight to hoard commodities and keep them safe.

I'm intersted to hear some substance to your argument, I really am. And don't get me wrong, I am not hoping for economic meltdown, but at this point it looks inevitable and it also looks perfectly orchestrated. The pyramid on the dollar bill with the eye of horus at the top is not just a coincidence.

I suggest you do a little reading about the history of money, then you will see how systems that seperate themselves from assets will ALWAYS fail, they always have throughout history. Just because the dollar has been given the sheen of Hollywood does not make it impervious to this inevitable rot. When the large holders accelerate diversification out of the dollar then we will really start to see the "collapse" and that is already happening. Chinese central banks are talking alot about diversification out of (dumping) the US dollar. The more dollars get printed the harder the final fall.

I understand about derivative plays, and I am sure there has been alot of that, and this is what is causing a good bit of the problems.  I just do not think the effect will be as disastrous as to constitute a collapse.

You bring in a criticism of the non gold-backed dollar.  I would not mind a return to the gold-backed currency and have no quarrel with that.  But you are combining a couple of things here.  There is no indication that the U.S. government intends to simply print currency to get us out of this jam (in essence creating a back-door tax).  Absent evidence of this, I do not see how this is relevant.

In sum, my prediction is that there will be enough banks left standing to provide credit to most of those who need it - though perhaps not to all those who want it.  And I am sure mortgage and other lending practices will be tightened up and this will cause some problems for people, but we will all get through it.  The stock market will suffer, but people are generally not leveraged 10 to 1, like many were during the late 1920s, so there should not be as many people falling out of windows.  Most people should be able to hang on to their jobs, and while there will be some belt tightening, as a whole, we should survive this just fine.