Modern Money Operations

We discuss  modern monetary policy solutions most feared by the Plutocracy.

Books & National Money

Post Reply
Forum Home > General Discussion > Great Depression v.2 Ahead?

Posts: 1

Just read "The Economic Collapse" in the News tab.

A number of media pundits and economists say we've turned a corner and are on the road to recovery.

Wish I could believe it, but deep down, I don't feel it, nor do I see any concrete evidence. I think most of it, especially from "official" sources, is just wishful thinking, intended to make us feel better and gloss over the real horrid depth of it all - midterm elections are coming up, after all.

Nothing has really changed. Yeah, the SEC has charged Goldman Sachs with CIVIL fraud. Big friggin deal. It's all pretty much show. Wall Street, the Fed and Congress have got a great thing going - they're not about to f**k it up.

So, Big Money and Mega Corporations and Politicians just keep on doing what they do.

Until the bottom falls completely out.

A ticking time bomb.

So, Potomac, how do you suggest we prepare?

And when do you theorize this will all go down?

I keep hearing about the coming commercial real estate bust. What do you make of that?

April 20, 2010 at 1:34 AM Flag Quote & Reply

Potomac Oracle
Site Owner
Posts: 5



Stay out of debt, buy gold and silver and if y ou've got the heart check into stocks that are based on food products  The government will not let us starve to death.


Over the next 18 months there will be a confluence of the following which will wreak havoc with the economy; unemployment will soar, foreclosures, home and commercial will skyrocket, and housing prices will plummet to 50% to 65% of 2008 values.


This year 50% to 60% of the $2-$3 trillion in option arms reset. About 55% of those will default, leading eventually to foreclosure.


The same is true for about $1 trillion in small business commercial loans. ..about half of those will default. (Source The Hightower Report and Financial Times)


We are in for a very rough ride for about five to seven years.  Housing remains core to this economy.  With it going to the dogs, we'll need to try to avoid dog food. 


Like the old blues song said, " Lately, the end of the month comes every two weeks."

April 21, 2010 at 6:40 PM Flag Quote & Reply

Posts: 1

Great piece Potomac.  Keep it coming


Gotta go, Gotta go!:cool:

April 23, 2010 at 8:36 AM Flag Quote & Reply

Potomac Oracle
Site Owner
Posts: 5



No one counted on Bernanke actually living up to his nickname "Helicopter Ben." Yep, between '08 and'12/'10 he's dropped $12.3 trillion in all on the financial industry and select companies HE decided were 'too big to fail.' And oh yes, QE 1 $800 B was just a cover for the larger amount just cited. He must have overlooked the fact that some of us can read balance sheets and income statements. Not the Fed's but the recipient's of the Feds largesse/fraud/heist/boondoggle.


So here we are expecting the economy to tank because the banks aren't lending to Main Street, still have over $150 trillion in toxic assets to cover, the money supply contracting at record rates, the dollar worth about two spits, and major creditors pressing for replacement of the dollar with an international basket of currencies backed by the IMF and the Bank of International Settlements.


But wait, there's more! We expected the President's great economic minds would deliver for Main Street, since they work for him, the Community Organizer. Right? I don't think so. Geithner, and his puppet master in the White House for the past two years, Larry Summers, joined hands with Bernanke to make sure the Stimulus package was under funded since it was only for Main Street and not Wall Street. Now, we have no inflation except for food and fuel according to Geithner and Bernanke, the Labor Department, and the Congressional Budget office. But we know better don't we?


The next act from these guys, there's a new guy replacing Summers. Makes no difference they're all acolytes for Rubin, Fauld, and Jamie Dimon. So we'll get more of the same, since Geithner will not stand to be the Treas. Sec. who watched the big six banks go into Chapter 13.


With the Repubs controlling the House they will embarrass themselves with legislation which forces additional burdens onto anyone or family that earns less than $75K. There approach to governance is counter intuitive right now. With State and local governments going belly up the new party wants to reduce government. think about it. A smaller government without funds to contract out means vital services will be reduced. Then what? Well, they want entrepreneurs to buy the right to perform EMS, police, fire, road maintenance services, etc. Now most of these buyouts has resulted in higher user fees. So the Repubs aren't going to raise your taxes that money would go to the government. They're going to charge these user fees because that money goes to them.





The big picture from my perch looks like this for the next year.



Unemployment will really take its toll even if it continues to hover around 9% for the next 6 month. The absence of health benefits, and the eventual depletion of Federal and State unemployment funds, along with food and transportation costs leaves some 16 million Americans in a very deep hole. Civil unrest will not be uncommon, particularly, in the Rust Belt. Other affected areas will be inner cities, and recently graduated college kids looking for more than a job at Burger King.



While winter sales were higher than expected retailers are less than sanguine about the next 6 months because of their real shortfall in liquidity and, therefore, reluctant to put scarce capital into replenishing inventories. They can thank Helicopter Ben. He only flies and makes his drops over Wall St.


Bottom line is stagflation for the middle class, wealth generation for the rich, and the poor, well they’ll just get poorer. Ben will launch QEII and QE III and QE ad infinitum to make everyone think all is well. Then the oil exporters will rebel and so will the IMF and force its preferences on the U.S. as our debt soars through the statosphere, no matter what the Congress does.  If it doesn't raise the debt ceiling in March or April an actual government shut down along with lower subsidy payouts for dependent industrial and agricultural sectors will become vocal and unruly.


Potomac Oracle

In the Absence of Freedom there is no Creativity, and

in the Absence of Creativity there is no Progress

January 16, 2011 at 10:51 PM Flag Quote & Reply

You must login to post.