General Category > Economy/Business

Sign of a financial Armageddon?

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Lipstick on a Hillary:

--- Quote from: mountaineer on February 08, 2013, 02:00:35 pm ---I always wonder what the heck Joe Six-Pack is supposed to do about it. Cash out the retirement fund and stuff paper money under the mattress? Sell all our stocks and get socked by capital gains tax?  Or just  :0001:?

--- End quote ---

Or gold bars?

massadvj:

--- Quote from: Lipstick on a Hillary on February 08, 2013, 02:27:57 pm ---Or gold bars?

--- End quote ---

Precious metals may or may not help.  It depends on how they deal with it.  If they attempt to fix the problem by continuing to print money, then certainly gold and silver will go up in value.  But if they decide to bite the bullet like Volker did in the 1970's then interest rates go way up and everything -- stocks, bonds, real estate, gold, silver -- goes down (at least for a while) as the value of the dollar goes up.

The smart move is to diversify.  Own a little of everything: real estate, stocks, bonds, precious metals, some savings in a safe foreign bank, and even art and antiques.  That way you will be immune from the effects of central decision-making.

If you don't own any assets and you think they may just decide to bite the bullet, then it might be smart to borrow as much money as you can at these artificially low rates and then invest in a basket of investments similar to those I enumerated above.  But that is highly speculative.  Bernanke has shown no inclination to reel back the money supply, and every inclination to just continue printing.

alicewonders:

--- Quote from: Lipstick on a Hillary on February 08, 2013, 02:27:10 pm ---There is another article from Canada Free Press featured at lucianne.com this morning.  A "DHS Insider" interview pretty much predicting a coming apocalypse that's been planned since the 1990's, courtesy of Obama/Jarrett.

I have to wonder if Obama and Co. aren't putting this wacky stuff out there to stir up the masses so they can quietly continue working under the radar in a much quieter manner.

--- End quote ---

Well, as we saw during the last election - all kinds of misinformation is being constantly foisted on us.  We truly can't believe ANYTHING anymore.  We've come to a point in history where we have to rely on our guts, because we know that what is being fed to us is mostly likely a lie.

240B:
My understanding is that the stock markets have been artificially propped up by simulus cash for the last four years. What this has done is it has taken away the natural ebb and flow of the markets. Markets tend to self-correct. When this economic correction cycle is stymied by printing money and throwing it at the markets, it creates a dam-like situation. When econmics and math is replaced by politics, the markets become unpredictable because suddenly the normal rules no longer apply, and nobody knows what the new government 'investing' rules are or what they are going to do from one day to the next. Government interference and manipulation doesn't 'fix' the downturns, it postpones and interferes with them and causes uncertainty.

Government does not have the same outlook and priorities as investors. And, since government money is either taken or printed, they do not worry about profit and loss. After all, its not their money. It is not money that they worked for and made, in the traditional sense. Government money is a kind of artificial money. It is like it is not even a real thing to them. So, they are willing to do anything with it. They give it away to their friends and all over the world. They spend it on wild lavish parties and luxurious vactions. They give themselves 'crazy' salaries and benefits. And they invest in industries which have no economic viability, while tearing down through regulation traditional companies which have been profitable for over a hundred years. A wildcard element like this in the markets really mucks everything up. In the effort to create 'stability', the government has actually undermined the markets by injecting an artificial, unpredictable, factor into the equation.

Furthermore, obviously, printing money devalues the dollar. So, you may have a screaming market topping 14,000 but it does not matter because the market is being valued in worthless newly printed Obama-bucks. And, the increases in capital gains taxes, skew the investment profitability calculation. A screaming market is worthless if the government is just going to confiscate the profits. You have to ask yourself, is this investment worth the risk, or should I just spend the money now?

So, you have a market which is volitile and manipulated by the government, which is being valued in a currency which is volitile and manipulated by the government, and more is printed every day. All market forces and economic theory is then out of the markets, and everyone is left to wonder what the crazy government is going to do next. Ergo, you have dependency on and linkage to the government for stock evaluations which used to be a purely market driven calculation. So now, when the government goes south, everything goes south, since the government has inserted itself into every crack and crevice of all the functioning markets.

And that's how it goes. Leftists just cannot leave anything alone. They saw a functioning equities market and they had to control it, for no reason, just because it is there. They saw functioning coporate and energy industries and they had to contorl it. They saw a thriving small business market and they had to control it. They saw private ownership of land, property, and estates, and they had to control it. The only way the government increases their relevance and authority is through regulation and control. At this point, they are totally out of control. They see a thriving functioning society and they must control it. Now, they want to control what you eat, what you drink, what you say, and what you think. However, in their attempts to control, they ultimately wind up destroying the very thing they covet.

And Lennie continues to pet the dead mouse.

mountaineer:

--- Quote from: alicewonders on February 08, 2013, 02:06:25 pm ---Joe Six-Pack has already been screwed, he just doesn't know it yet.  Right now, I'm investing in stocking up food, water, ammo and making myself more self-sufficient. ...Just get ready the best you can.

--- End quote ---
Yeah, I'm trying to do that, too. Several hundred rounds for each of our guns, canned goods, toilet paper, bottled water. Good grief. You'd never know this was America, would you?

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