Global Economic Reset

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Global Economic Reset

Postby Pixel8r » Fri Feb 07, 2014 11:33 am » Safari 6.1.1 Safari 6.1.1  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200

We are building up to an almighty financial collapse and a global economic reset. Lets use this thread to discuss what it means and how we can not get caught in it. I am going to start the thread with some of my thoughts, please add some of your own.

Why has it got to happen?

The old western system is failing, putting it simply debt is expanding exponentially on all levels. Official government debt levels keep expanding rapidly and when you start to include their unfunded liabilities you start to see just how out of control things are. Consumers are maxed out with debt levels going to all time highs.

Debt can not carry on expanding exponentially, there comes a time when things breakdown. Banks only appear solvent as they are allowed to use dubious accounting to keep their real situation from their books and are being kept alive by free money handouts (QE).

The problem is the economy follows a S shaped curve, it moves in cycles, so there must come a point when no amount of debt expansion can combat the cycle of the economy turning down. They have not come up with a way to have a permanently expanding economy (even though Gordon Brown thought he had :lol: ).

What signs will show it is starting?

We are starting to see the effects currently in the emerging markets of this reset starting to happen, we are seeing capital controls springing up while failing countries desperately try to save their currencies against rising interest rates. So my guess is that this something we will see spread, we will find that we are restricted from moving money around and have rising interest rates.

What form will the reset take?

There is lots of talk about debt jubilees or debt repudiation, either way someone else suffers for the debt cancellation. I think this is just debtors fantasies on how they can escape living above their means, nether is a fair solution. In the past we would have had a straight forward depression with money becoming more valuable and failing businesses going into default & personal bankruptcies. Following the crisis in 2008 we saw most of the west (except Iceland) bailing out the banks and relaxing the accounting standards. This has created a zombie economy where the bankrupt are kept alive by drip feeds of new debt based money. Currently we are no closer to a solution and the debt keeps expanding exponentially while the zombie economy continues to contract, so we will reach breaking point very soon. The gap between a downward slopping S and a hockey stick debt expansion continues to grow.

We desperately need to move back from a debt based monetary system to one which can hold it's value. This will mean that the US dollar loses it's status as the world reserve currency and the world moves using other currencies to settle trade. Gold and silver will play a big part as they have intrinsic value and aren't anybody else's liability. I expect we will see the SDR playing a lot bigger role as well as other countries currencies being used more globally (Yuan, Rubel, Real, etc…). I expect to see gold and silver be used to backup currencies, not in a convertible way as in the past but more to show that they won't be printed to oblivion and show the trust in the issuing countries currency.

So what will we see?

  • Gold and Silver being valued higher in failing fiat currencies
  • Higher interest rates
  • Failing banks
  • Capital controls
  • Dollar losing massive amounts of purchasing power
  • Shift from financial assets to tangible assets
  • Lose of faith in certain currencies (hyperinflation?)

How can we protect ourselves?

  • Buying physical gold and silver
  • Buying gold in the ground (Miners)
  • Diversifying it's location globally
  • Paying down debt
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Global Economic Reset

Postby Laura » Fri Feb 07, 2014 3:33 pm » Google Chrome 32.0.170 Google Chrome 32.0.170  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Off topic response. Wrath expected.

How can we protect ourselves?


(I know you mean financially Pix, but wont there be other more pressing issues to deal with?
Tell me off for raising a familiar scenario but I don't see the point of discussing where we might sensibly go after a 'reset' until we know we have survived the aftermath.
Plus none of us will be allowed to make any decisions about a new improved, washes-whiter, brave new financial world).

How to protect ourselves:
By not living in an over crowded land where the peasantry have a ludicrously high default level of expectation.
Once that supermarket supply chain breaks down, & the filling station tanks run dry, you will need to be either:
1) At a place of plenty where the food falls off the trees: & the people are not too concerned with their minimal benefits system.
2) At Warpig's place with a two-year food supply & automatic weapons; & hopefully, house trained pets!
3) ?

The fights in supermarkets over the sugar & coffee shortages in the 70s*, & the riots of a few years ago ought to be a warning over how ugly Britain can become, & how fast.
OK, hardly anyone here was around for the 70s issue.
________________________________________
Today this crazy island is celebrating its 40th anniversary of so called independence.
Anyone with a brain will tell you it was one of the worst moves ever made, but any excuse to pass the ganja around & party non-stop for 36 hrs.
Sai Baba, when asked the question "What is the purpose of physical life?" responded: "To learn not to do it again."
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Re: Global Economic Reset

Postby Pixel8r » Fri Feb 07, 2014 4:19 pm » Safari 6.1.1 Safari 6.1.1  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200

Laura » Fri Feb 07, 2014 3:33 pm wrote:Off topic response. Wrath expected.

No thats not off topic, moving to a country which won't be so effected makes a lot of sense. The trouble is in identifying which countries won't be effected in this global crisis. :think:
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Global Economic Reset

Postby Laura » Sun Feb 09, 2014 2:31 pm » Google Chrome 32.0.170 Google Chrome 32.0.170  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Pixel8r » Fri Feb 07, 2014 4:19 pm wrote: The trouble is in identifying which countries won't be effected in this global crisis. :think:


Slow perpetual travelling does that. Spend long enough in a country to get under its skin, without becoming part of the system.
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Re: Global Economic Reset

Postby Pixel8r » Sun Feb 09, 2014 3:17 pm » Safari Mobile 7.0 Safari Mobile 7.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

Laura » Sun Feb 09, 2014 2:31 pm wrote:
Pixel8r » Fri Feb 07, 2014 4:19 pm wrote: The trouble is in identifying which countries won't be effected in this global crisis. :think:


Slow perpetual travelling does that. Spend long enough in a country to get under its skin, without becoming part of the system.

Yeah the problem with that is having my small boy & a business to take care of. I have been thinking about selling my studio, which would mean I no longer had an income but a load more cash to play with. Taking my time trying to make the correct decision before rushing into it...
"Money is Gold, and nothing else"
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Re: Global Economic Reset

Postby Laura » Sun Feb 09, 2014 3:31 pm » Google Chrome 32.0.170 Google Chrome 32.0.170  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

I was in post 'reset' mode Pix, so no business required. You (& son no longer in the system) are free to go/be wherever.
Though whether airline travel, as we know it would be available to us not-well-connected nouveau riche is debatable.
Thus being in the right place (i.e. elsewhere) when the UK masses go into panic mode will probably be vital.
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Re: Global Economic Reset

Postby Pixel8r » Sun Feb 09, 2014 3:41 pm » Safari 7.0.1 Safari 7.0.1  Mac OS X Mac OS X  Screen Resolution: 1680 x 1050 1680 x 1050

Laura » Sun Feb 09, 2014 3:31 pm wrote:I was in post 'reset' mode Pix, so no business required. You (& son no longer in the system) are free to go/be wherever.
Though whether airline travel, as we know it would be available to us not-well-connected nouveau riche is debatable.
Thus being in the right place (i.e. elsewhere) when the UK masses go into panic mode will probably be vital.

Post reset there will be a new economy developing and ideally I would like to be able to still use my skills in it. I'm kind of still stuck between wanting to hang on to my old life and finally letting go and embracing new possibilities I guess.

I still have a nagging doubt in my mind saying what if I'm wrong, I would be turning my back on over 25 years of experience/learning.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Global Economic Reset

Postby Laura » Sun Feb 09, 2014 3:59 pm » Google Chrome 32.0.170 Google Chrome 32.0.170  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Pixel8r » Sun Feb 09, 2014 3:41 pm wrote:Post reset there will be a new economy developing and ideally I would like to be able to still use my skills in it. I'm kind of still stuck between wanting to hang on to my old life and finally letting go and embracing new possibilities I guess.

I still have a nagging doubt in my mind saying what if I'm wrong, I would be turning my back on over 25 years of experience/learning.


Point taken. Easier for me, I had retired, young(ish). Only thing I had to lose was my place in the property porn pecking stakes, & I was, & mostly still am, beyond caring about that! Age does unclutter the mind if one lets go.
You do not see Britain coming apart socially, at all?
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Re: Global Economic Reset

Postby Pixel8r » Sun Feb 09, 2014 4:50 pm » Safari 7.0.1 Safari 7.0.1  Mac OS X Mac OS X  Screen Resolution: 1680 x 1050 1680 x 1050

Laura » Sun Feb 09, 2014 3:59 pm wrote:Point taken. Easier for me, I had retired, young(ish). Only thing I had to lose was my place in the property porn pecking stakes, & I was, & mostly still am, beyond caring about that! Age does unclutter the mind if one lets go.
You do not see Britain coming apart socially, at all?

Yes I kind of think when the reset happens things are going to be very bad everywhere. The banks will be closed, people won't have access to their money (which will be rapidly losing value), shops will sell out quickly and won't be able to restock...

Things are going to be particularly bad in the UK initially but I think martial law will come into place and things will adjust to the new normal. The UK I think will take the approach to dealing with things that it had in the war, keep calm and carry on. It does worry me about being in another country being an outsider and not speaking the language.

Don't you worry about how things are going in Portugal already and how much worse they could get?
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Global Economic Reset

Postby Laura » Mon Feb 10, 2014 1:18 am » Google Chrome 32.0.170 Google Chrome 32.0.170  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Pixel8r » Sun Feb 09, 2014 4:50 pm wrote:
Don't you worry about how things are going in Portugal already and how much worse they could get?


We have always been aware that the country could revert to being repressive, which is why we have never become resident.
The property was very cheap & we are prepared to walk away.
Another back up country or two is the current (gentle) quest, but we never see permanence as a goal as we are only visiting the planet.
Financially & mentally locking oneself into a regime in any land seems Canute-like; especially in these times.
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Re: Global Economic Reset

Postby Laura » Thu Jun 05, 2014 8:00 am » Google Chrome 35.0.191 Google Chrome 35.0.191  Windows Seven Windows Seven  Screen Resolution: 1440 x 900 1440 x 900

"Hegelian Dialectic writ large" , (said one commenter).

http://www.zerohedge.com/news/2014-06-0 ... recovery-0

While the rise of the East is being painted in Western circles as a threat to U.S. and NATO dominance, the bigger picture is being hidden from view. Yes, indeed, the consolidation of the East is a considerable threat to the dollar and the U.S. economy — most importantly in the event that China refuses to accept dollars as payment on exports and debts. With the world’s largest exporter/importer refusing to take dollars as a reserve, most nations will inevitably follow their lead. The argument against this development is, of course, that there is no rational trigger for such a violent fiscal attack. I would remind skeptics that there was no rational trigger for the current strengthened relations between Russia and China until the Ukraine crisis. Is anyone really foolish enough to bet against another direct or indirect conflict between NATO and the East? And is anyone really ignorant enough to assume that said event would not be used as an excuse to cut the legs out from under the dollar completely?

The New World Order players have positioned the East and West for just such a scenario. Why? In my article Who Is The New Secret Buyer Of U.S. Debt?, I give evidence indicating that the Bank of International Settlements and the IMF are preparing the financial world for a new global monetary system, brought into existence by a second Bretton Woods conference. The debasement of the dollar and the rise of the East are NOT obstacles to this plan. Rather, they are required factors. There can be no truly global economic system without “harmonization”, the demise of the dollar's world reserve status, and the end of sovereign economic governance.

For those who doubt this scenario, read Paul Volcker’s latest statement, as reported by Zero Hedge.

Volcker, the same man who was directly involved in the destruction of the first Bretton Woods agreement and the final death rattle of the gold standard, is now promoting a NEW Bretton Woods-style agreement in which currencies are pegged to a controlled market system — in essence, a centralized international monetary system. Volcker also suggests that a single nation-based reserve currency like the dollar may be a danger to overall fiscal health.

Volcker is right. The dollar-dominated forex casino and fiat fraud is a danger to the world. Volcker helped make it that way! And what a surprise, the former Federal Reserve chairman has a solution on a silver platter for the American people — all we need is GLOBAL centralization and bureaucratic oversight.
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