THE COMING ECONOMIC CRISIS GET READY!

Looking forward to see how the stock markets react today, I bought a whole heap of shares at 4:15 PM on the ASX. At 4:15 allot of the shares where down 2.15% to 3.00% to previous trade day.

Will provide feed back in a few hours

Jp, I know nothing about shares so could you explain this to me, what is the difference between the shares you purchased yesterday and going to the casino and putting it on black? Isn’t what you done another form of gambling?

Only for games of chance. Skill based gambling can be very lucrative. Added bonus is your winnings are not taxable. Had a client who was pro gambler. Started when he was 18. By the time he was 28 he was buying million dollars houses for cash.  Blackjack (he card counts and reckons it's easy) poker (luvs the tournaments) and sports betting (NRL & AFL mainly) are his primary areas. He was telling me their ROI is around 20%. Can't argue with that.

His worst year he only made $80k (tax free). He averages around $150-200k/yr and his best year was $600k

CB's can suppress interest rates, govt's can borrow till the cows come home and banks can push the credit bubble ever bigger but at some point we will have to pay the piper.

This graphic of global GDP is an eye opener if you look at all the economies that will tank when the US, Japan, EU go tits up.

US + Japan + China + India + France + UK + Spain + Italy + Netherland + Portugal + Ireland + Brazil + Argentina + Greece =>60% of global GDP

All of these countries have high debt that is still growing faster than growth or are already in substantial trouble. This only ends one way. Economies and financial systems are now so intertwined that the collapse of one will drag the others down just like mountain climbers roped together in an avalanche.

This graphic illustrates just how precarious things are becoming. Debt (red) is now growing exponentially faster than growth (blue) and has been since the mid 80's

"At the current rate of debt increase the U.S. will pushing 130% of debt to real GDP by 2018.  This is, of course, not including the funding needs that will ultimately be required to support the increased costs of the entitlement programs of Social Security, Medicare and now the Affordable Care Act (ACA).  The reality is that debt needs will substantially increase as entitlement programs continue to consume ever larger chunks of the current budget.  By 2020 the current welfare programs alone are expected to require 75% of all federal revenues and this does not include the impact of the ACA(Obamacare).  This, of course, is unsustainable."

I will be utterly surprised if we manage to get through the next 5 years without this thing going totally off the wall.

Some days I wonder if things will last 5 weeks let alone 5 years. God help you if you have all your eggs tucked up in the US market

This says it all:

The Carlyle Group’s Latest Investment… Trailer Parks

• Because the cost of relocating a home is expensive, residents are less likely to move away. “Our customers have no alternative shot at homeownership, nor do they [normally] even have the credit scores and quality to seek anything better,” Mr. Rolfe said. “They never leave the park they are in, and the revenues are unbelievably stable as a result.”

Yep. Captured by big money. The small time PI doesn't realise they have the tiger by the tail.

Something that is rarely discussed in a direct sense but none the less should be considered in the scheme of things. While GFC08 was widely considered to be a 'Financial System Gone Wrong' kind of thing it is quite likely something more complex and sinister than simply a few greedy banksters and a corrupted system. Corrupt systems and banksters may simply be an opportunity waiting to be captured by others intend on shifting the balance of power.

Economic Warfare: Risks and Responses

• Serious risks to the global economic system were exposed by the crisis of 2008,

  raising legitimate questions regarding the cause of the turmoil. An estimated $50

  trillion of global wealth evaporated in the crisis with more than a quarter of that

  loss suffered by the United States and her citizens.

• A number of potential causative factors exist, including sub-prime real estate loans, a

  housing bubble, excessive leverage, and a failed regulatory system. Beyond these,

  however, the risks of financial terrorism and/or economic warfare also must be

  considered. The stakes are simply too high for these potential triggers to be ignored.

Phase 1/3

• The first phase was a speculative run-up in oil prices that generated as much

  as $2 trillion of excess wealth for oil-producing nations, filling the coffers of

  Sovereign Wealth Funds, especially those that follow Shariah Compliant

  Finance. This phase appears to have begun in 2007 and lasted through June 2008.

Phase 2/3

• The second phase appears to have begun in 2008 with a series of bear raids

  targeting U.S. financial services firms that appeared to be systemically

  significant.

Phase 3/3 (yet to come or is it already underway?)

• The risk of a Phase Three has quickly emerged, suggesting a potential direct

  economic attack on the U.S. Treasury and U.S. dollar.

But, we remain left with the critical unanswered questions of who and how?

The recent seizure of $134 billion face value in supposedly counterfeit U.S. Federal

Reserve bonds underscores the reality of the economic threat.

• "According to economic analysis the severe financial crisis ravaging the US and

    hitting the international community on all continents has its economic roots in

    two major realms: One was the overbearing political pressure put on Wall Street

    to release loans into unprepared sectors of society and two, was the

    miscalculation – some say the drunkenness- of Wall Street in accepting these

    immense risks. But according to Political Economy assessment, there may have

    been a third player in the crisis: OPEC, or more precisely, radical circles within

    oil Producing regimes in the Peninsula. The thesis argue that combined Salafist

    Wahabi and Muslim Brotherhood circles in the Gulf -with consent from the

    Iranian side on this particular issue, used the escalating pricing of Oil over the

    past year to push the financial crisis in the US over the cliff. The high point‘ in

    his analysis is the timing between the skyrocketing of the prices at the pumps and

    the widening of the real estate crisis. In short the ―Oil-push put the market out

    of balance hitting back at Wall Street. Basically, there was certainly a crisis in

    mismanagement domestically (with its two above mentioned roots), but the possible

    OPEC economic offensive‘ crumbled the defenses of US economy in few months."