Economy has about 16-30 years before total melt down, any ideas?...

[createdtoworship]

Going on the gold standard will crash the economy sort of like going to bitcoin would crash the economy, due to restricting liquidity. But if they simply put like 1/1000 of 1$ worth of gold and pegged it to each dollar of fiat. That would get us in the door. Right now 1$ = 0.000635190 ounces of gold. So if we made like I said 1/1000 of that figure equal a dollar. Then we would need roughly 1.9 million ounces of gold to print 3 trillion dollars of money. According to the Bureau of the Fiscal Reserve, there are 147,341,858.382 ounces of gold in Fort Knox as of August 31, 2018. so 147 trillion ounces. So we have plenty of Gold to peg to money. So I don't see really a liquidity problem. If anything it may be hard initially to quantify the gold into denominations, 1,5,10,100 dollar increments. But build ten more US mints. Then it should be fine. That way when you go to the bank you can either get your cash or your gold. To me that is really the only way to do it.

other than getting rid of medicare and social security outright, and even then you are only buying yourself a few decades (at best).

 

[createdtoworship]

Not needed. More wealth has been created in the last 10 years than in all of history before that. Measure the income or standard of living of the worlds poor to see that it is increasing faster than it ever has in the past. If it was all factories then it might have been more evenly distributed, but its not.

Kind of irrelevant. Since the climate change warriors are saying we got less than 12 years until the climate does away with us all, what difference does it make.

I'm no market or economy expert so, what do you think would happen if the government just decided to regulate crypto-currency and switch over to that? Or would that even be possible?

all wealth is created by new debt so when the credit system of fiat collapses all the value is gone from the fiat money as seen in many countries that have experienced hyperinflation. so your 200K house you bought 10 years ago is now a million that means the guy buying it today borrowed 5 time more money than you did. Every sector that is up is the result of money creation going to inflate the bubbles.
I believe the powers behind the NWO are running the central banks of the world and will one day collapse the system. Dan 7
“And in the latter time of their kingdom,
When the transgressors have reached their fullness,
A king shall arise,
Having fierce features,
Who understands sinister schemes.
24 His power shall be mighty, but not by his own power;
He shall destroy fearfully,
And shall prosper and thrive;
He shall destroy the mighty, and also the holy people.
25 “Through his cunning
He shall cause deceit to prosper under his rule;[fn]
And he shall exalt himself in his heart.
He shall destroy many in their prosperity.
He shall even rise against the Prince of princes;
But he shall be broken without human means.[fn]
26 “And the vision of the evenings and mornings
Which was told is true;
Therefore seal up the vision,
For it refers to many days in the future.”

In Rev 6 we see global hyperinflation described when the seal judgments are opened.

Second Seal: Conflict on Earth
3 When He opened the second seal, I heard the second living creature saying, “Come and see.”[fn] 4 Another horse, fiery red, went out. And it was granted to the one who sat on it to take peace from the earth, and that people should kill one another; and there was given to him a great sword.

5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart[fn] of wheat for a denarius,[fn] and three quarts of barley for a denarius; and do not harm the oil and the wine.”

7 When He opened the fourth seal, I heard the voice of the fourth living creature saying, “Come and see.” 8 So I looked, and behold, a pale horse. And the name of him who sat on it was Death, and Hades followed with him. And power was given to them over a fourth of the earth, to kill with sword, with hunger, with death, and by the beasts of the earth.

The principal is clear the borrower is slave to the lender.

Somebody will quote the Book of Revelation in 3...2...1....

In 2016 Indian prime minister went on public TV and demonitized 80% of the indian currency. That is the exact problem with fiat money. Money is only valuable if the public agrees it's valuable as soon as someone with power, the FED says it's worthless, then it's worthless.

Why India wiped out 86% of its cash

gold, precious metals, palladium, silver, oil, commodities such as wheat, soy beans, realestate, crypto's all that stuff has inherent value "other than the dollar."

so I at least recommend diversifying out of being allocated in 100% FIAT products in your investments. I put together an article here for you if you want to know more about preparing for a recession:
Recession (converted).pdf

 

[createdtoworship]

instead of the government using it's credit cards, lets try cutting back and saving.

 

[createdtoworship]

"But the fruit of the Spirit is love, joy, peace, longsuffering, kindness, goodness, faithfulness, gentleness, self-control. Against such there is no law. And those who are Christ’s have crucified the flesh with its passions and desires." Galatians 5:22-24 nkjv

I want to focus on "self control."

see impulse spending is a problem every budgetter faces...

we all have to control our spending, some of us are better at it than others. My wife is WAY more frugal than myself for instance.

But we can't be using our government credit card to get out of a recession. We need to actually be doing the opposite, creating jobs, using the GDP to pay off credit, not creating more.

saving. If we have to do it as individuals to get out of debt, our country should also be cutting back as well. We can't pay for everyone to have free stuff, free college, 1000 for each person as one candidate running right now is pushing, we simply can't afford all this.

 

[Jermayn]

"But the fruit of the Spirit is love, joy, peace, longsuffering, kindness, goodness, faithfulness, gentleness, self-control. Against such there is no law. And those who are Christ’s have crucified the flesh with its passions and desires." Galatians 5:22-24 nkjv

I want to focus on "self control."

see impulse spending is a problem every budgetter faces...

we all have to control our spending, some of us are better at it than others. My wife is WAY more frugal than myself for instance.

But we can't be using our government credit card to get out of a recession. We need to actually be doing the opposite, creating jobs, using the GDP to pay off credit, not creating more.

saving. If we have to do it as individuals to get out of debt, our country should also be cutting back as well. We can't pay for everyone to have free stuff, free college, 1000 for each person as one candidate running right now is pushing, we simply can't afford all this.

Yang dropped out, so the 1000 a month thing is dead (for now). Now we just have to squash the socialism and 90 trillion dollar per decade for free stuff thing.

 

[createdtoworship]

Yang dropped out, so the 1000 a month thing is dead (for now). Now we just have to squash the socialism and 90 trillion dollar per decade for free stuff thing.

oh thats nice. Yeah entitlements are right now half of the federal budget, myself speaking i would love to see social security when I retire, but it's a system that has a lot of leaks. We would do well to remove the system and start over.

 

[createdtoworship]

Should our government print ourselves out of all financial woes?

Instead of using credit (proverbs 6:1-5), God says to work hard and save (Proverbs 6:6-8)

(Pro 6:6-8) The example of the ant.

Go to the ant, you sluggard!
Consider her ways and be wise,
Which, having no captain,
Overseer or ruler,
Provides her supplies in the summer,
And gathers her food in the harvest.

"While the ant is also an excellent example of hard work, the truly exceptional thing about the ant is its ability to store up food for the winter. God has given them the instinct to know that leaner times are on the horizon, so they cannot afford to eat everything in sight. They must store some provision for a time when food will be scarce.

Sadly, this instinct is missing in some people. They live from paycheck to paycheck as if nothing can ever go wrong. Then when something does—a leaky roof, an extra school expense, or that flat tire—they must go into debt to pay for what’s needed.

And thus begins a cycle of debt from which it’s terribly difficult to escape. As soon as one debt is paid off, another unexpected expense occurs, so more debt is taken on, and when that’s paid off, some new repair is needed, and so on . . ."

above quote from Crown Financial Ministries.

 

[Brian Mcnamee]

you may or may not know this but the banks don't have to have your money in case of a total US bank failure. Right now they are VERY GOOD. They have lots of new laws that keep them afloat after 2008. I think we are good for at least till the next recession for sure. Maybe up to 10 years. But the banks only have to carry 10% of the cash in your transaction accounts (your checking), your saving account they don't have to have any money. They use your money when deposited and invest it into high risk derivative bets on the market. They don't actually have your money after you deposit it. That is important to know. Most people don't liquidate their money once it's in there. But this video might be usefull for this discussion:

Also below are some new tools since 2008 to control hyper inflation during next recession:

"One popular method of controlling inflation is through contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates. This helps reduce spending because when there is less money to go around, those who have money want to keep it and save it, instead of spending it. It also means less available credit, which also reduces spending. Reducing spending is important during inflation because it helps halt economic growth and, in turn, the rate of inflation.


That is a good short video and people should look up the derivative bubble to see that they banks have so much invested in these speculative holdings that there is not enough money out there to sell them to anyone else or get out from under them. So on the books they have these listed as assets and count towards the company's collateral to borrow or lend more $. But in reality they can never sell them or the paper value will plummet as lots of supply and no demand will force the values to decline. so they keep buying more to keep the values on paper up there. This is a no way out situation.

The other part of Rev 6 speaks of peace taken from the earth that men should kill one another at this time of hyperinflation. This is the word ethnos and it seems that the civil unrest is divided among ethnic lines fighting for the resources in a martial law sort of way. It is interesting to the migrant crisis in Europe how these lines are being formed now and in the US we have fostered racial tension here as well. The other thing to know is the continuity of government laws in a crisis will give the government control over the food, water, energy supply and the beast system comes in with only 42 months to go.

There is still some economy running it would seem as when Babylon is destroyed the merchant will weep over their destruction as no one will be consuming or purchasing the luxury goods that have made them rich. If we are on the verge of these days it would seem either the US or NY is Babylon as all the large trade cities of the world have been built largely by trade imbalances with one nation, the US. Furthermore that which is called Babylon is charged with getting all the other nations to commit fornication with her and she is charged with the blood of martyrs and exporting all kinds of evil. The US is behind the UN and the capitalist have funded the socialist. The consolidation of power and control is what they want and in a collapse everything falls back to teh banks or the government.


There are three main ways to carry out a contractionary policy. The first is to increase interest rates through the Federal Reserve. The Federal Reserve rate is the rate at which banks borrow money from the government, but, in order to make money, they must lend it at higher rates. So, when the Federal Reserve increases its interest rate, banks have no choice but to increase their rates as well. When banks increase their rates, less people want to borrow money because it costs more to do so if that money accrues interest. So, spending drops, prices drop and inflation slows."

above quote from this link:

What Methods Do Governments Use to Fight Inflation?

but again I don't think that inflation will have a choice once our outflow to pay our bonds is more than our taxes. And in my new study on this, I will go to half our budget. I will add it here and also add it to OP if I can still: check out this image:

View attachment 271911

(click to enlarge)​

 

[Steve97]

Kind of irrelevant. Since the climate change warriors are saying we got less than 12 years until the climate does away with us all, what difference does it make.

Either way, we're toast. Haven't we read that somewhere, like, say, the Bible?

 

[createdtoworship]

Either way, we're toast. Haven't we read that somewhere, like, say, the Bible?

Well Jerusalem was destroyed two or three times in history, Just because God punishes us for sin doesn't ever resolve us of our responsibility right now to correct the error. Debt is one thing that people can get discouraged over, thinking they will never be free. Yet saving even 5 dollar a week in five years is several thousand dollars and can be an emergency fund.

 

[SkyWriting]

It's not wealth per say, we are not talking about corporate wealth or the wealth of the richest 1%.

I am talking about wealth being created world wide by increases in cooperation among strangers.

For a base example of what I mean:

Five shacks sit with families that spend much of their day finding food and water.
One family decides to dig a well and through cooperation they dig one and now all five have running water. One decides to dig a septic field, they all cooperate and now the five houses have running water and sewer.

Wealth has been created.

The internet has had a similar result world wide with people using their resources to help others. Uber for example. The next generation of internet is 100 times the volume of today. This will globally expand cooperation to the world population.

Wealth will be created worldwide. The standard of living for the poor is growing faster each day. Faster than ever in history.

 

[SkyWriting]

Unless more people get jobs and pay taxes, more people are born, or more taxation that simply won't go up.

Working lives will be extended and in about 25 years, there will be no need for retirement due to poor health.

 

[createdtoworship]

I am talking about wealth being created world wide by increases in cooperation among strangers.

For a base example of what I mean:

Five shacks sit with families that spend much of their day finding food and water.
One family decides to dig a well and through cooperation they dig one and now all five have running water. One decides to dig a septic field, they all cooperate and now the five houses have running water and sewer.

Wealth has been created.

The internet has had a similar result world wide with people using their resources to help others. Uber for example. The next generation of internet is 100 times the volume of today. This will globally expand cooperation to the world population.

Wealth will be created worldwide. The standard of living for the poor is growing faster each day. Faster than ever in history.

I see what you mean. I don't think that GDP if you will will be a problem. But with the markets and economy growing immune to cash injection in the trillions currently, we are headed for a lower base level. And as a result up to 50% of retirements, which are almost entirely in equity right now, will lose half. Secondly bond interest payments at the current projection max out in 16 years, I recalculated my previous post, and updated it, it's even worse that before....

 

[createdtoworship]

Working lives will be extended and in about 25 years, there will be no need for retirement due to poor health.

well I do agree that social security should be extended, but that won't fix the major leaks in the social security drain problem. Many are doing fraud, and some people are stealing identities and using dead peoples social security cards for money. That type of fraud. But yes, extending retirement age would be good. In fact in scriptures retirement was not a thing, in fact not until the 1930's was retirement an american thing. In scripture people worked till they died. God never mentions retireing. That does not mean we can't. But what I mean is that when we retire we should keep our businesses running, just have other people run them, and over see operations.

 

[SkyWriting]

I see what you mean. I don't think that GDP if you will will be a problem. But with the markets and economy growing immune to cash injection in the trillions currently, we are headed for a lower base level. And as a result up to 50% of retirements, which are almost entirely in equity right now, will lose half. Secondly bond interest payments at the current projection max out in 16 years, I recalculated my previous post, and updated it, it's even worse that before....

Cash is now flowing around the globe far easier than ever before. You may know of crowd-funding direct from consumers but there are similar intermediate sources where cash is flowing from investor sources direct to business startups. "Shark-Tank" is the most well known pop-culture example, but that volume is not even a tiny drop of the venture capital deals being created. Crowd-funding is growing by 30% per year. This does not involve the bond markets.

 

[createdtoworship]

Cash is now flowing around the globe far easier than ever before. You may know of crowd-funding direct from consumers but there are similar intermediate sources where cash is flowing from investor sources direct to business startups. "Shark-Tank" is the most well known pop-culture example, but that volume is not even a tiny drop of the venture capital deals being created. Crowd-funding is growing by 30% per year. This does not involve the bond markets.

well we are talking volume here. A selloff of the stockmarket can start from millions of dollars of outflow on a daily setting. Resulting in panic selloffs of trillions of capital. The capital in stocks right now is about 30 trillion, and bonds 40 trillion. Crowd funding is not even on the chart as far as market capitalization. The most popular crowd funding company kickstarter only pushed a few billion in 2018 I think. Microsoft for example has a 1.4 Trillion dollar market cap. So the best crowdfunding compared to the largest stocks, does not really compare as far as weight. Some day, maybe in ten years crowdfunding will be good, but I think it's risky investing too much in crowdfunding at the top of the market. For instance if they primarily are invested in startups, well startups are risky. So they essentially are like investing in penny stocks which are the most risky stock you can invest in other than short term options. So at the end of the next recession I wouldn't bet if 80% of crowd source or 90% of crowd source clients go bankrupt. But I could be wrong. Some of the companies have good financial base. But startups in general don't do well in a recession. I am not saying a recession is here, but it could be. The market is that high right now, it's sort of parabolic. Which is a great time to keep funds long. But it can tank any day up at these levels. Most companies that are high right now, will be rock bottom cheap to invest in at the bottom of the market. That would be the time to be on board with crowd funding. But you are right it's growing. But I think that is just because the economy is strong. The bond market which is 60% of the total capital in investment in america, if that bond market tanks, no stock will be able to endure a loss of 60% of the market. So that will result in a selloff of stocks too, and thus we have the next recession.

 

[createdtoworship]

General Motors promotes 930 temporary workers to full-time seniority

will see how long this lasts...

 

[SkyWriting]

Some day, maybe in ten years crowdfunding will be good, but I think it's risky investing too much in crowdfunding at the top of the market.

You don't invest in crowd funding. You use it as your method for obtaining financing.
It bypasses the entire system you are voicing concerns about. It is not affected by stock swings except that it replaces other finance systems that fail.

And it's dramatic growth is in the future you are worried about. Microsoft corporation is being replaced by the open source android platform. There is likely more computing power through Android than Windows.

Any melted system can be replaced by open policy funding.

 

[createdtoworship]

You don't invest in crowd funding. You use it as your method for obtaining financing.
It bypasses the entire system you are voicing concerns about. It is not affected by stock swings except that it replaces other finance systems that fail.

And it's dramatic growth is in the future you are worried about. Microsoft corporation is being replaced by the open source android platform. There is likely more computing power through Android than Windows.

Any melted system can be replaced by open policy funding.

well this is all very optimistic. I get that you love your business, I like my job too. But I know it's limitations as well. And I don't think any financer platform is isolated from market swings. For example if you have no funders to match with startups, what do you do? I think many forget how many trillions were lost in 2008. Trillions of capital was lost. That does not mean stay out of the market, it just means be careful. I have stable funds low volitility funds at the top of the market and higher volitility at the bottom of the market for higher risk. But saying open source, linux or other based platforms will replace microsoft. That may be true, but it will take ten or twenty years. Linux has been out five years, and I would venture to say it has about 1 percent of market share. I don't disagree with open source, but unfortunately most don't want to learn how to make open source software work with software they use every day such as microsoft office.

 

[Richard T]

I think you have some good intuitions and while you are right on the cost of government debt, the days of normalized interest rates are over. If you pay attention to some of the past and current Federal Reserve members, they have been talking more about negative interest rates. That is the government's way out of paying such large interest payments, along with their balance sheet expansion where the Federal Reserve buys debt by increasing the money supply. It seems likely to me that rates will go to zero before they might implode. At some point, I think that everyone will dump the major currencies and the reaction will be to form a new world currency in; pushed under the guise of greater stability.

It is a mystery to me but there are currently, trillions in mostly Euro nations, where people are paying the government to loan them money. Amount of global debt with negative yields balloons to $15 trillion

As of last year, I have been buying US corporate bonds and some of the longer-term ones have done quite well, some up 15% in a year. I would dump them at the hint of more inflation or if interest rates go down another percent. I figure the stock market will implode first. For instance over coronavirus fears, bond funds had a record inflow of money last week pushing yields to very low levels.

Because of the sheer supply of money, it seems unlikely that the USA would ever go back to the gold standard. Even when it worked, private holding of gold was prohibited and I doubt the government can ever make that illegal again.

I too am a bearish on the economy, with this reasoning. If the end times are coming and God wants to get everyone's attention, what would work faster than some event that would also lead to the biggest stock market collapse in history? I also guess that this would be the most dramatic when stocks are at an all-time high. I figured this would have already happened by now though some say the USA postponed it by the election of Trump. (I missed some great stock gains with this poor timing.)