Will we be surprised?

http://www.kitco.com/ind/Bevan/jul182011.html

World Wide Bailout

The big talk these days is of the debt ceiling in the US having to be raised.  The US is lucky they can do this unlike other countries such as Spain, Portugal, Greece, Ireland and others who need to be bailed out or pass huge austerity measures.

Unfortunately the perpetually increasing debt of the US is what’s going to be their downfall.  It simply cannot last forever and the only way out now is a devaluation of the US dollar which has been and is occurring, but so far it’s been orderly.

It’s impossible to ever pay off the US debt.

If you do any shopping at all you know prices have been going higher and  in many cases at an accelerating rate.

Do not be fooled by the snails pace of the devaluation.  A cursory look through history will show you that this is always how the fall of a currency occurs.  Slowly at first, then it picks up some steam but is still manageable but when the big fall happens, it’s almost an over night phenomenon.

I can’t say whether this will come next week, next moth, next year or in ten years but it has to happen and you have to have protected your wealth beforehand.

History tells anyone who will listen what is coming up.  Do yourself a favour and spend half an hour researching monetary history on Wikipedia or inflationary or hyper-inflationary events.

You’ll quickly realize the horror show that is coming.

September 20, 2007, 11:26 PM

http://krugman.blogs.nytimes.com/2007/09/20/is-this-the-wile-e-coyote-moment/

Is This the Wile E. Coyote Moment?

Lots of buzz suddenly about the possibility of a sharp fall in the dollar. The Canadian dollar is back at parity with the greenback; there are rumors that the Saudis are planning to diversify into euros, and maybe even that the Chinese might break the dollar peg. A nice summary at Barry Ritholtz’s blog The Big Picture.

I could say that I saw this coming; the problem is that I’ve been seeing it coming for several years, and it keeps not arriving (and I don’t know if this is really it, even now.) The argument I and others have made is that the U.S. trade deficit is, fundamentally, not sustainable in the long run, which means that sooner or later the dollar has to decline a lot. But international investors have been buying U.S. bonds at real interest rates barely higher than those offered in euros or yen — in effect, they’ve been betting that the dollar won’t ever decline.

So, according to the story, one of these days there will be a Wile E. Coyote moment for the dollar: the moment when the cartoon character, who has run off a cliff, looks down and realizes that he’s standing on thin air – and plunges. In this case, investors suddenly realize that Stein’s Law applies — “If something cannot go on forever, it will stop” – and they realize they need to get out of dollars, causing the currency to plunge. Maybe the dollar’s Wile E. Coyote moment has arrived – although, again, I’ve been wrong about this so far.

Much more about all this in a thoroughly incomprehensible paper I recently published in the European journal Economic Policy. Don’t bother clicking if you hate funny diagrams and Greek letters.

Comment by Adamantine:

This article entitled the Wilie Coyote moment was written by Krugman before he received the Nobel prize in economics and before he became a lapdog economist for the political left. He says little about the Wilie Coyote moment any longer but he knows it is coming.

He wondered about it 4 years ago. Someday it will be history .It will surprise us. If we are on to anything concerning prophecy it may be sooner than others think.

I have commented on this before but feel it deserves repeat.

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3 thoughts on “Will we be surprised?

  1. no. (i would be surprised if this goes on for a few more years). in the light of all prophecy-that opens up new revelation almost daily in our day and time-i think it is still very much a sooner rather than later thing. but God is calling the shots so i keep waiting and watching and praying along with all you good folks. yes it deserves a repeat because we need to stay awake!!!

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  2. If you look at it from a pure monetary point of view then it looks like allot sooner rather than later. Probably this year, Moodys said even if the US raise their debt limit they probably still will have their rating downgraded.
    The new world reserve currency is just around the corner. Not sure if its called the Bancor or not but it will be called something.

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  3. I have never really liked the way the money system works no matter what. As Jesus said give unto Caesar what is Caesar which means to me all this money and tax system etc belongs to the world.

    Mat 22:17 Tell us therefore, What thinkest thou? Is it lawful to give tribute unto Caesar, or not?
    Mat 22:18 But Jesus perceived their wickedness, and said, Why tempt ye me, ye hypocrites?
    Mat 22:19 Shew me the tribute money. And they brought unto him a penny.
    Mat 22:20 And he saith unto them, Whose is this image and superscription?
    Mat 22:21 They say unto him, Caesar’s. Then saith he unto them, Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.

    Mar 12:13 And they send unto him certain of the Pharisees and of the Herodians, to catch him in his words.
    Mar 12:14 And when they were come, they say unto him, Master, we know that thou art true, and carest for no man: for thou regardest not the person of men, but teachest the way of God in truth: Is it lawful to give tribute to Caesar, or not?
    Mar 12:15 Shall we give, or shall we not give? But he, knowing their hypocrisy, said unto them, Why tempt ye me? bring me a penny, that I may see it.
    Mar 12:16 And they brought it. And he saith unto them, Whose is this image and superscription? And they said unto him, Caesar’s.
    Mar 12:17 And Jesus answering said unto them, Render to Caesar the things that are Caesar’s, and to God the things that are God’s. And they marvelled at him.

    Luk 20:21 And they asked him, saying, Master, we know that thou sayest and teachest rightly, neither acceptest thou the person of any, but teachest the way of God truly:
    Luk 20:22 Is it lawful for us to give tribute unto Caesar, or no?
    Luk 20:23 But he perceived their craftiness, and said unto them, Why tempt ye me?
    Luk 20:24 Shew me a penny. Whose image and superscription hath it? They answered and said, Caesar’s.
    Luk 20:25 And he said unto them, Render therefore unto Caesar the things which be Caesar’s, and unto God the things which be God’s.
    Luk 20:26 And they could not take hold of his words before the people: and they marvelled at his answer, and held their peace.

    As far as I have even seen, at least in the US, some man’s picture is always on the money.

    So trust not in money which is controlled by man.

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