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World Finiancal collapse |
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Johnray1 
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Joined: April 23 2006 Location: United States Status: Offline Points: 8159 |
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 Topic: World Finiancal collapsePosted: December 12 2014 at 11:34am |
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To All,I just heard on FOX NEWS that there was a possibly of an "Imminent" world wide Financial collapse.
Did any one else heard this. I just heard it one time.(that is bad) Does any one know what they are talking about?Johnray1 |
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jacksdad
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Joined: September 08 2007 Location: San Diego Status: Offline Points: 47251 |
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Posted: December 12 2014 at 12:10pm |
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I never know what Fox is talking about.
Sorry - couldn't resist... 
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"Buy it cheap. Stack it deep"
"Any community that fails to prepare, with the expectation that the federal government will come to the rescue, will be tragically wrong." Michael Leavitt, HHS Secretary. |
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ASB
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Joined: October 16 2014 Location: United States Status: Offline Points: 690 |
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Posted: December 12 2014 at 7:58pm |
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I didn't hear that report but I hope I can shed some light on it.
First of all what is being talked about is not a global catastrophe the likes of which has never been seen before despite words like collapse. Economies will continue to exist and currency will continue to exist. What is worrisome is that the global banking system is a house of cards and many countries central banks are dependent upon each other while at the same time working against each other. As each country fears deflation they work to fight it but in doing so they export inflation to other countries. The possibility exist that once deflation hits home in one country it will occur in all of them. Central banks fear deflation greatly because all these countries are in debt and when you are in debt with deflation it becomes impossible to pay the interest on the debt. If they can arrange to have modest inflation (which they claim is normal and they claim is the best thing for people) they they errode their debt while passing it on to the people who live in their countries. The second part of the problem is that as they each fight deflation they increase the risk of inflation while simultaneously passing it along to other countries. They think they can handle inflation but the possibility exist that it could get out of hand and skyrocket. If we knew whether inflation or deflation was in store for the future we could prepare. The three main possibilities are hard deflation which will hurt the government greatly but help the little guy, 2 to 3 percent inflation wich hurts us little guys slowly and which the gov wants, or rampant iinflation which hurts us greatly while allowing the gov to eliminate its debt unless its currency looses all value.
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Johnray1
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Joined: April 23 2006 Location: United States Status: Offline Points: 8159 |
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Posted: December 12 2014 at 9:12pm |
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ASB,you gave an excellent but brief description pf economics as related to country to country. But when you take into account that all countries are not equal in size or importance,you explanation means very little.
Another thing that you left out is that during any all economic problems between nations of any size,ALWAYS results in great suffering and death amoung the common people.As a matter of fact,at times like this is when new nations and new governments are formed like Communism and Nazi Germany. You can talk to your students like they are idiots and they simply do understand,but do not talk to me or other people on this board like we are idiots. We are not and you need to go back to the drawing board to form another condescending explanation.Johnray1 |
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jacksdad
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Joined: September 08 2007 Location: San Diego Status: Offline Points: 47251 |
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Posted: December 13 2014 at 1:23am |
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Am I missing something here? ASB's response honestly didn't seem at all condescending, JR.
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"Buy it cheap. Stack it deep"
"Any community that fails to prepare, with the expectation that the federal government will come to the rescue, will be tragically wrong." Michael Leavitt, HHS Secretary. |
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Jen147
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Joined: March 23 2013 Status: Offline Points: 17144 |
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Posted: December 13 2014 at 4:57pm |
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I'm not sure either. Maybe a miscommunication ???
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jacksdad
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Posted: December 13 2014 at 6:22pm |
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I feel like I should be taking flak for my post, not ASB.
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"Buy it cheap. Stack it deep"
"Any community that fails to prepare, with the expectation that the federal government will come to the rescue, will be tragically wrong." Michael Leavitt, HHS Secretary. |
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Jen147
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Posted: December 13 2014 at 6:59pm |
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{FLAK} → JD There you go.
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jacksdad
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Posted: December 13 2014 at 7:01pm |
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Now that's much better. Thanks Jen
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"Buy it cheap. Stack it deep"
"Any community that fails to prepare, with the expectation that the federal government will come to the rescue, will be tragically wrong." Michael Leavitt, HHS Secretary. |
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Kilt2
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Joined: December 17 2007 Status: Offline Points: 7414 |
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Posted: December 14 2014 at 4:03am |
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The Chinese Death Star
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And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with him.
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Dutch Josh
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Joined: May 01 2013 Location: Arnhem-Netherla Status: Offline Points: 95327 |
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Posted: December 14 2014 at 4:06am |
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Royal Dutch Shell, one of the largest companies in the world will loose 1,5 bilion (per year) €/$ for evere10€/$ drop of oilprices. With the way oilprices are dropping oilcompanies loose money because producing the oil and petrol cost more than the price they might get. A lot of smaller oilcompanies might not be able to pay their debts-it all will turn down on banks that might run into severe problems. Also a lot of currencies are linked to oil, Russia, the US, Nigeria, OPEC are getting into problems. China is buying oil at a bargain !
ASB had a good story on in/de-flation. Banks are running into problems in many ways(most old problems were not even solved, only pushed forward) but governments are running out of tricks to "help". And of course conflicts in Ukraine, Middle East etc might explode.
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We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein |
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onefluover
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Posted: December 14 2014 at 11:09am |
I know, huh. It would make more sense if they sent Bob, Juan & Geraldo over to CNN. Greta can stay. She was a spy but been there so long I think she flipped.
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"And then there were none."
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Jen147
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Posted: December 14 2014 at 1:26pm |
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Send Shepard Smith somewhere also, I don't care where. I turn it if I see he's on. I like Greta but I was appalled how she did the interview with Andrew Tahmooressi. That was the most painful interview I've ever watched. He was not ready & she just kept pushing. I'm sure every psychiatrist in the country was fuming. She should never have talked to him so soon... & just for ratings is disgusting! That man is obviously troubled & my heart broke for him, she was taking advantage of the fact that she helped get him released. He was vulnerable & impressionable. Someone in his family should have stepped in & refused an interview so early.
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Dutch Josh
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Joined: May 01 2013 Location: Arnhem-Netherla Status: Offline Points: 95327 |
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Posted: December 15 2014 at 4:09am |
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http://www.zerohedge.com/news/2014-12-14/oils-crash-canary-coal-mine-9-trillion-crisis
ust about everything will be hit as well. Most of the “recovery” of the last five years been fueled by cheap borrowed Dollars. Now that the US Dollar has broken out of a multi-year range, you’re going to see more and more “risk assets” (read: projects or investments fueled by borrowed Dollars) blow up. Oil is just the beginning, not a standalone story.
If things really pick up steam, there’s over $9 TRILLION worth of potential explosions waiting in the wings. Imagine if the entire economies of both Germany and Japan exploded and you’ve got a decent idea of the size of the potential impact on the financial system
And that’s assuming NO increased leverage from derivative usage. |
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We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein |
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Dutch Josh
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Joined: May 01 2013 Location: Arnhem-Netherla Status: Offline Points: 95327 |
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Posted: December 15 2014 at 4:14am |
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Some reactions are worth reading; the recovery of the economy is based on currencies made out of nothing. the last five years been fueled by
"Borrowed dollars" are made out of nothing as debts, as ENFORCED FRAUDS, which are controllingEVERYTHING that our current civilization is doing! |
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We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein |
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CRS, DrPH
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Joined: January 20 2014 Location: Arizona Status: Offline Points: 26660 |
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Posted: December 15 2014 at 6:42am |
Thanks, Dutch Josh, great post as always. I actually began my career in the throes of the oil price collapse in the USA back in the mid 1980s, when Texas, Oklahoma and other oil-producing states saw the price of oil plunge, as with today. This is a great article on the phenomenon of recurring oil boom & bust cycles: Generally, what is bad for the oil producing regions (KSA, Iran, Russia, ISIS etc.) tends to be good for the USA, Europe, Japan etc. Lower oil prices will hurt our employment in oil & refining, but much of this has been pared back due to declining revenues and in-plant automation. Otherwise, this will be a windfall for consumers and oil-intensive industries. New vehicle manufacturers will have a field day, particularly in the USA, where older, less fuel-efficient models crowd the streets. A few will splurge on large, inefficient pickup trucks & SUVs, but even these are much more efficient than they were 20 years ago. Collapse of derivatives remain a constant threat, and the new US budget only adds more uncertainty by protecting the big banks who are heavily exposed. Entities are playing poker with our savings, and there isn't much we can do about it, except prepare for the worst. Be safe, Chuck
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CRS, DrPH
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Satori
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Posted: December 15 2014 at 4:08pm |
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PIGMEN WIN AGAIN |
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KiwiMum
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Posted: December 15 2014 at 8:19pm |
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I studied economics in the late 80's and early 90's, and ever since I have had no faith in pension schemes no matter who they are run by or what they choose to invest in. All governments and business in the developed economies have based their business and investment decisions on exponential growth, which as we are all aware now, is a fallacy.
For years companies and governments have been using money put into pension schemes as collateral on borrowings assuming that they could pay it back when the need arose. As growth has slowed to a virtual halt, that money is gone forever. There will come a tipping point when those people retire and the funds that they currently believe are coming to them, fail to materialise. Then we really will have problems.
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Those who got it wrong, for whatever reason, may feel defensive and retrench into a position that doesn’t accord with the facts.
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Dutch Josh
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Joined: May 01 2013 Location: Arnhem-Netherla Status: Offline Points: 95327 |
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Posted: December 16 2014 at 1:11am |
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Thanks CRS,DrPH, a good article putting the effect of oil/energy-prices in perspective. Low energy costs means more room for most consumers to spent their money in another way. Another "oil-thing" Russia is claiming, oil is paid for in US$-with both the oil-price and the Russian currency sinking Russia ends up with tha same amount of rubles for oil.
Robert Reich's Inequality for all (https://www.youtube.com/watch?v=ImXjgdIVsWE) underlines the need for consumers demand for economic growth. One of many things going wrong is that wealth is accumulating with a very small proportion of the people while most others are getting poor.
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We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein |
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jacksdad wrote: