Busted: Bankers and The Global Economy

May 3, 2009

Inflation and Devaluation Looms on Horizon

warren_buffettMany of you haven’t been willing to believe me. Inflation despite the current troubled economy is still a very real concern. Why? Continually pumping dollars into the failed financial system is spreading the dollar very thin indeed. The bailout is likely to have “unintended consequences”. So says the blue boy of the financial market and Berkshire Hathaway chief Warren Buffett.

Buffett says that officials should be judged leniently since the economy was facing “as close to a total meltdown as you can imagine.” If you read this blog, you know what the meltdown was caused by: unchecked banking innovation and greed.

In the eyes of Buffet, the runaway debt spending must be paid for sooner or later (no force majeure?). Political leaders show little inclination to raise taxes, at least in an upfront way. Buffett indicates that one sure way to pay for excess spending is to “inflate the value” of the currency. The biggest losers in a surge of inflation, he added, would include holders of bonds and other fixed-income assets. “I haven’t had my taxes raised. My guess is the ultimate price will be paid by a shrinkage of the value of the dollar.” Duh. ~ E. Manning

November 14, 2008

Hal Turner: Dollar About to Crash (Video)

Filed under: banking, money, politics — Tags: , , , , , — digitaleconomy @ 11:27 pm

Force Majeure (French for “superior force”) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as war, strike, riot, crime, act of God (e.g., flooding, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract. However, force majeure is not intended to excuse negligence or other malfeasance of a party, as where non-performance is caused by the usual and natural consequences of external forces (e.g., predicted rain stops an outdoor event), or where the intervening circumstances are specifically contemplated.

Naturally, there is the line about gold being a hedge against collapse which is debatable since determining valuation is an issue, at least for the average Joe. Further, having gold sitting around during a national crisis with riots is of debatable safety. Hal Turner’s suggestion that you exchange your currency overseas is a viable option and would work in this scenario as well as could be expected.  Hal Turner’s statement is generally in line with what is on this website. Is this currency collapse a fabrication?  Considering the behind-the-scenes activities of central bankers or the International Society of Bankers, I think not.  I am quite familiar with that. The national economy has just been fleeced for $3 trillion dollars with the bailout. Think hard and take whatever steps you deem appropriate. ~ E. Manning

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