Massive Wealth Destruction - Huge recession looming?

Discussion in 'Silver' started by pdkbffwleo, Jul 3, 2013.

  1. RT

    RT New Member

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    That IS the big crash!

    When you exchange your $100Usd or $180Aud for $3.80 world dollars. Pretty sure that will be seen as a huge crash.

    If a new currency comes in, it has to reset all the old debt and to do that we all loose our wealth and value of our assets and services.

    It can not be a straight $ to $ swap.
     
  2. willrocks

    willrocks Well-Known Member Silver Stacker

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    Yes understand. But I don't think the currency swap will lead to anarchy. Anyone who's has most of their assets outside of currency won't really lose that much. Anyone holding a lot of currency (e.g. retirees) will get crushed.
     
  3. RT

    RT New Member

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    The AMERO!!
    Its be talked about quietly for some time. Borders are being talked of opening between US and mexico, USD crashes, suddenly bringing a united Americian currency about wont be so hard as the value between the USD and Mexican Peso wont be to far apart (it may be the Mexicans who complain their currency is getting watered down if the US really crashes)

    Then bring in South America and its the new Euro experiment all over again.
     
  4. RT

    RT New Member

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    What about goods and services, home prices destroyed, debt, loss of working capital and the unemployment that would come with it and the list goes on. The only ones who would come out of it ok are those that own out right assets with no outstanding debt and would then be able to have capital to back themselves to move foward.
    Maybe not full blown anarchy, but I could imagine some extreamly pissed off people who wouldnt have anything left to loose that can bring about some very polarizing changes and bad movements rising within societies.
     
  5. chrissilver

    chrissilver Member Silver Stacker

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    We are still a long way from a world currency, not even every geographical European county has joined the euro yet.

    If the dollar is replaced by a new currency linked to gold or silver then that would be awesome for us Stackers. Hopefully that happens one day.
     
  6. Grimnar

    Grimnar New Member

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    The funny thing about debt to GDP...

    When your country is in recession, the debt stays the same but the GDP falls. In that way your debt to GDP ratio will increase.

    Similarly in a recovery or boom the reverse occurs, though typically more debt is added in here to sustain growth.

    Kind of changes the way I look at debt to GDP ratios as a gauge of economic health.
     
  7. Matthew 26:14

    Matthew 26:14 New Member

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    There will be a huge recession (isnt this actually a depression?) someday. But will it be in 2020, 2040 or 2090? Doomsday prophets will be right once as time will end but how many million times are they wrong to get it right once? As they say even a broken clock is right twice a day. I see no impending financial disaster but they often emerge rather quickly and 9 times out of 10 they are headed off before becoming cataclysmic.
     
  8. gazzahere

    gazzahere Member Silver Stacker

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    Why are some people thinking about a world currency?

    Is it not crystal clear that Europe can't even get a single currency to work on the one continent?


    If it can't work in Europe because of policy and cultural difference between eg. Italy and Germany - how the hell can anyone even think it would have a snowballs chance in hell to work globally.

    Do people not notice the policy and cultural differences between say China, Columbia and Saudi Arabia? Let alone the poms and yanks?


    What am I missing here? :)


    Gazza
     
  9. systematic

    systematic Well-Known Member

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    [​IMG]

    They may as well use this as a world currency. Its well known and worth just as much.
     
  10. pdkbffwleo

    pdkbffwleo New Member

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    This will NEVER happen. I guess you have to be an actual American to understand this. Google only provides so much information.
     
  11. pdkbffwleo

    pdkbffwleo New Member

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    Actual "net" government debt is more important. But, America has just started recovering from its worst recession in 80 years, compounded with losing an estimated 50% of it's worth in property values. The unemployment rate was over 10%. These compound everything. I think with the drawdowns in two wars, and a recovering economy, the GDP ratio only gets better...as more wealth is obtained due to increase values on stocks/housing...and less government programs for those that are unemployed. a 5% difference in unemployment equates to BILLIONS in generated tax revenue, and a BILLIONS of welfare/food stamps/hand-outs being paid off.
     
  12. pdkbffwleo

    pdkbffwleo New Member

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    Agreed.
     
  13. Axolotl_

    Axolotl_ New Member

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    Excellent point, that ratio could be optimistic. I would hazard that a new currency will have no built in advantage for the US.
     
  14. penna123

    penna123 New Member

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    Its happening according to some sources. Nesara.
    Central banks have done what they can.
     
  15. donpaulo

    donpaulo New Member

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    My source has the 6 year business cycle touching bottom at or around 8-12-2013

    Anyone who spends some time studying cycles will tell you that there are an unknown number of cycles all at work influencing things on earth and each other.

    But a series of waves are all due to seek bottoms between now and 2015 which is a 76 year cycle bottom

    So between now and then I see more down than up

    Wealth Destruction ? its part of the cycle so there is no point in fighting it. Simply prepare as best you can. I know I have.



    For you lot in AUS, the property market has to be like sitting in front of a freight train. best of luck to you all
     
  16. Potato

    Potato Member

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    A global currency is definitely a while away, simply because we don't have a global power to enforce a single currency onto the world. Countries would just start their own currency again and there wouldn't be anyone to stop them.
     
  17. The property market in Aus is certainly hazardous, which is why I have reduced my exposure to a bare minimum, however, the Aus market was never inflated to the extent of the US property market and will likely correct down mildly and then stagnate rather than crash sharply as the US market did.
     
  18. A new currency is plausible although doubtful on a global scale I think.
    It has been done before in the face of crippling inflation and debt very successfully.
    The most recent example that comes to mind is the German Third Reich.
    The hopelessly inflated currency of the debt ridden, corrupt Weimar Republic was thrown out and a completely new currency was created which was debt free.
    Regardless of what one thinks of the policies of the Third Reich most admit this was an economic miracle which took Germany from a bankrupt nation to a major world power in just a few short years.
    I am certain there are those who would look at this example and consider it for themselves, as a completely original, brilliant new idea of course.
    As the French are fond of saying. The more things change, the more they remain the same.
     
  19. penna123

    penna123 New Member

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    If its not on tv or in newspapers....
    But there are some things going on. Look into Nesara.
     
  20. Stark

    Stark Active Member Silver Stacker

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    Maybe there will new currency in BRICS countries.

    Global currency is possible when more countries will start leaving toilet paper, I mean dollars. :)

    The Euro is more political project that economical. Our country passed all Maastricht criteria. Some others didn't.
    The Greece didn't. The Greece case is good described in book Fall of Euro.
    Even Germany didn't always pass all Maastricht criteria.

    There are many countries who don't want have Euro too strong/survive.
    It's all sort of "game of thrones". ;)

    Every "union" (Austro Hungarian ,Yugoslavia, etc.) in which our country was fall apart so chances EU surviving are quite low. ;)
     

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