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And your comments on the GDP to debt ratio? Including unfunded liabilities the debt number is staggering.

Total-US-Debt-As-A-Percentage-Of-GDP.jpg


actaully I didn't comment on it. I know its ramifications. As a Canadian you should be worried cause as America goes, Canada goes. Sorry.

what I was actually commenting on, was your asinine comment:

'Unfortunately not much being produced in the US anymore'

a bit off, no?

:)
 

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actaully I didn't comment on it. I know its ramifications. As a Canadian you should be worried cause as America goes, Canada goes. Sorry.

what I was actually commenting on, was your asinine comment:

'Unfortunately not much being produced in the US anymore'

a bit off, no?

:)


ok how about the productivity of the US economy is not in good shape.

And commenting on how great the GDP is without mentioning the enormous debt (growing by the day) serves no great use. When it takes a few dollars of debt to create one dollar of GDP growth it doesn't say much for the high GDP number.

As for the Canada/US outlook you seem to be coming from some emotional bias. I think its logical to assume Canada would not suffer as greatly as the US if the US dollar tumbled. But if you think not that's fine. I'm trying to take precautions as well, I'm not here telling Americans your country is going to hell and I'm going to be in heaven here. Its going to be bad for everyone.
 

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ok how about the productivity of the US economy is not in good shape.

And commenting on how great the GDP is without mentioning the enormous debt (growing by the day) serves no great use. When it takes a few dollars of debt to create one dollar of GDP growth it doesn't say much for the high GDP number.

As for the Canada/US outlook you seem to be coming from some emotional bias. I think its logical to assume Canada would not suffer as greatly as the US if the US dollar tumbled. But if you think not that's fine. I'm trying to take precautions as well, I'm not here telling Americans your country is going to hell and I'm going to be in heaven here. Its going to be bad for everyone.

commenting how great the USA GDP is??

wtf are you talking about?? YOU are the one that stated USA doesn't 'produce much anymore'. I chimed in to expose how little you know.

that's it

now carry on with your great fear of armageddon


'Most dismiss the notion of this "extreme" idea but it might be wise to stock up on some survival basics. Supply of food/water at the minimum. '


may I recommend an acre of land in the North West Territories?....bring lots of food, some guns....and don't forget your gold and silver, hide it in the igloo
 

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Ricboff not sure why you are coming on so strong. I'm not an economic guru, if I say something stupid feel free to point it out. Better of course in a mature manner but hey whatever way its your choice.

But the main point of this thread is to give the heads up on what I perceive as a very real chance a currency crisis breaks out in the near future. Now if you have some comments to make on the situation I'd love to hear them. Of course not being well schooled in economics the purpose of this thread is simply to try to get others to educate themselves by listening/reading to those with good knowledge. ie Peter Schiff has been mentioned on this thread.

Its obvious by your comments you have no worries of an economic collapse and scoff at the notion. Now if you could back up your commentary with good information that would be great.
 

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Ricboff not sure why you are coming on so strong. I'm not an economic guru, if I say something stupid feel free to point it out. Better of course in a mature manner but hey whatever way its your choice.

But the main point of this thread is to give the heads up on what I perceive as a very real chance a currency crisis breaks out in the near future. Now if you have some comments to make on the situation I'd love to hear them. Of course not being well schooled in economics the purpose of this thread is simply to try to get others to educate themselves by listening/reading to those with good knowledge. ie Peter Schiff has been mentioned on this thread.

Its obvious by your comments you have no worries of an economic collapse and scoff at the notion. Now if you could back up your commentary with good information that would be great.

fair enough. Recomending hoarding food and water reeked of paranoia ---- you came across as an 'expert', in your tone, rubbed me the wrong way. You have conceded you are not.


not sure what you mean by a potential 'economic collapse'. But, hey, we all got to worry about something---for some, its 'will I survive this cancer I have?', for others its 'do I have enough gold?', and others 'will my kid make the 'AAA' hockey tean this yr?', and others, 'USA's debt is too big, can they pay it off?'

life is fun, ain't it
 

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Like the majority of others I was not alive to the current economic situation of the US and the world in general. The purpose of the post is simply to get others to do some research. It has become clear to me this will not blow over and everything won't be ok. But that is my opinion, everyone must form their own.

On US production here is a piece I found which details some problems.

http://theeconomiccollapseblog.com/

19 Facts About The Deindustrialization Of America That Will Blow Your Mind

The United States is rapidly becoming the very first "post-industrial" nation on the globe. All great economic empires eventually become fat and lazy and squander the great wealth that their forefathers have left them, but the pace at which America is accomplishing this is absolutely amazing. It was America that was at the forefront of the industrial revolution. It was America that showed the world how to mass produce everything from automobiles to televisions to airplanes. It was the great American manufacturing base that crushed Germany and Japan in World War II. But now we are witnessing the deindustrialization of America. Tens of thousands of factories have left the United States in the past decade alone. Millions upon millions of manufacturing jobs have been lost in the same time period. The United States has become a nation that consumes everything in sight and yet produces increasingly little. Do you know what our biggest export is today? Waste paper. Yes, trash is the number one thing that we ship out to the rest of the world as we voraciously blow our money on whatever the rest of the world wants to sell to us. The United States has become bloated and spoiled and our economy is now just a shadow of what it once was. Once upon a time America could literally outproduce the rest of the world combined. Today that is no longer true, but Americans sure do consume more than anyone else in the world. If the deindustrialization of America continues at this current pace, what possible kind of a future are we going to be leaving to our children?

Any great nation throughout history has been great at making things. So if the United States continues to allow its manufacturing base to erode at a staggering pace how in the world can the U.S. continue to consider itself to be a great nation? We have created the biggest debt bubble in the history of the world in an effort to maintain a very high standard of living, but the current state of affairs is not anywhere close to sustainable. Every single month America does into more debt and every single month America gets poorer.

So what happens when the debt bubble pops?

The deindustrialization of the United States should be a top concern for every man, woman and child in the country. But sadly, most Americans do not have any idea what is going on around them.

For people like that, take this article and print it out and hand it to them. Perhaps what they will read below will shock them badly enough to awaken them from their slumber.

The following are 19 facts about the deindustrialization of America that will blow your mind....

#1 The United States has lost approximately 42,400 factories since 2001. About 75 percent of those factories employed over 500 people when they were still in operation.

#2 Dell Inc., one of America’s largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.

#3 Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem, North Carolina in November. Approximately 900 jobs will be lost.

#4 In 2008, 1.2 billion cellphones were sold worldwide. So how many of them were manufactured inside the United States? Zero.

#5 According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.

#6 As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.

#7 The United States has lost a total of about 5.5 million manufacturing jobs since October 2000.

#8 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.

#9 In 1959, manufacturing represented 28 percent of U.S. economic output. In 2008, it represented 11.5 percent.

#10 Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul, Minnesota. Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford's new "global" manufacturing strategy.

#11 As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time less than 12 million Americans were employed in manufacturing was in 1941.

#12 In the United States today, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services.

#13 The United States has lost a whopping 32 percent of its manufacturing jobs since the year 2000.

#14 In 2001, the United States ranked fourth in the world in per capita broadband Internet use. Today it ranks 15th.

#15 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#16 Printed circuit boards are used in tens of thousands of different products. Asia now produces 84 percent of them worldwide.

#17 The United States spends approximately $3.90 on Chinese goods for every $1 that the Chinese spend on goods from the United States.

#18 One prominent economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#19 The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in the 51 years that records have been kept.

So how many tens of thousands more factories do we need to lose before we do something about it?

How many millions more Americans are going to become unemployed before we all admit that we have a very, very serious problem on our hands?

How many more trillions of dollars are going to leave the country before we realize that we are losing wealth at a pace that is killing our economy?

How many once great manufacturing cities are going to become rotting war zones like Detroit before we understand that we are committing national economic suicide?

The deindustrialization of America is a national crisis. It needs to be treated like one.

If you disagree with this article, I have a direct challenge for you. If anyone can explain how a deindustrialized America has any kind of viable economic future, please do so below in the comments section.

America is in deep, deep trouble folks. It is time to wake up.
 

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Our largest export to China is chicken feet.

I have tried them and they can have them.
 

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HPark1, are you still buying physical PM's at these levels? Already have a decent stack, but not opposed to getting more... These prices really suck, especially the premiums on silver...

Kudos on your foresight, no one knows how this is gonna end up... Not terribly difficult to guess where the dollar goes, eventually...
 

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HPark1, are you still buying physical PM's at these levels? Already have a decent stack, but not opposed to getting more... These prices really suck, especially the premiums on silver...

Kudos on your foresight, no one knows how this is gonna end up... Not terribly difficult to guess where the dollar goes, eventually...


If, well hopefully when, I get more funds I would not hesitate adding gold/silver at the current prices. imo the bull run is still in its infancy stages. Besides the weakening us dollar (and really all fiat currencies) which will almost ensure the price keeps moving up for pm's the massive manipulation of the paper gold/silver ETF's still hasn't come to light publicly. Once that huge scandal breaks there could be no telling where the prices surge for gold/silver.

I'm really particular to Silver, I'm fascinated with its potential scarcity down the line.
 

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Canadian dollar and Aussie dollar about to overtake the US dollar. Swiss franc all time high against the US dollar.


Weak U.S. dollar pushes loonie toward parity

The Canadian dollar is trading just below parity with the U.S. dollar. (Adrian Wyld / THE CANADIAN PRESS)

By: CTV.ca News Staff

Date: Wednesday Oct. 13, 2010 2:48 PM PT

The Canadian dollar is once again inching closer to parity with its American counterpart, a development that experts say is linked to a continuing weakness in the U.S. dollar.

It finished the day at 99.52 cents US -- up 0.57 of a cent. In earlier trading, it had reached a high of 99.89 cents.

But experts say it is a case of the U.S. dollar getting weaker, not the Canadian dollar getting stronger.

Camilla Sutton, the chief currency strategist at Scotia Capital, said the loonie has been rising at the expense of the U.S. greenback for several months.

"The strength in the Canadian dollar we've seen over the last few months has really been much more based on the weakness in the U.S. dollar than it has in strength in the Canadian fundamentals," Sutton said Wednesday.

"We've seen equities move higher, major currencies move higher as well as commodities and that has helped the Canadian dollar."

Dollar could stay at parity

Sutton also said that the loonie could stay at this level for some time.

"The U.S. dollar is extraordinarily weak," she said, "which implies we'll hover very close to parity for quite awhile."

RBC analyst Patricia Croft recently predicted that the Canadian dollar will continue to rise for the near future and could even reach US$1.15 in the next year.

But that doesn't mean the Canadian dollar is doing well, as many other currencies have gained much more ground on the greenback than the loonie in recent months.

Falling well behind the gains of the euro, the Japanese yen and the Australian dollar, the Canadian dollar "is one of the worst performing currencies in the world, except for the U.S.," said RBC currency strategist David Watt.

Watt says the loonie is actually being dragged down by the U.S. dollar, because the perception is that the export-dependent Canadian economy will eventually suffer from the problems south of the border.

BNN's Michael Kane said the U.S. dollar has also been falling amid recent signals that the U.S. Federal Reserve is likely to "throw more money at the U.S. economy."

Kane said that "when a country does that, when a central bank does that, it has a tendency to weaken the currency."

A higher dollar, as always, has advantages and disadvantages for Canadians.

It makes it harder to sell Canadian exports to the U.S. market. The flip-side is that it will be cheaper to import American-made goods.

For snowbirds, it will be easier to take a trip south of the border this winter.

-------------------------------------------------------------------------------------

Swiss franc sets new all-time high vs dollar

ZURICH: The Swiss franc hit a fresh all-time high against the dollar on Wednesday after minutes from the U.S. Federal Reserve's latest meeting, released Tuesday, hinted at further monetary easing, weakening the greenback. The franc traded down 0.2 percent against the dollar at 0.9553 francs per dollar at 0641 GMT after setting a fresh all-time high of 0.9540 earlier in the session.

"The Fed meeting points to a second round of quantitative easing as early as November, putting pressure on the dollar," said Sarasin currency strategist Ursina Kubli. "However, a lot of this news has already been factored in so the impact is likely to be short-lived." The franc was largely unchanged against the euro following solid gains in the previous session, with traders awaiting Swiss producer and import price data, due at 0715 GMT, for confirmation the Swiss economic recovery remains robust.

"We are expecting a stronger Swiss franc, as risk aversion could rise again," Kubli said "The Kof barometer (which forecasts economic growth) has developed very well and also the euro business climate, but business sentiment in Switzerland could deteriorate as it follows the global downtrend on the back of weak U.S sentiment," Kubli said. The franc was largely stable against the euro compared to the New York close, trading at 1.334 per euro.
 

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IMHO

What choice does the US have but to inflate out of massive debt and deficit?
Deflation would make revenues slow and debt increase. Not an option.
Low US buck will allow American exports to lessen the trade deficit and make imports less attractive.

Unfortunately the USA is destined for a much lower status in economic clout.
Reserve currency will once again be precious metals.
 

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Love these guys



America's Currency Crisis is Now Underway

According to minutes that were just released this week from the Federal Reserve's meeting on September 21st, the Federal Reserve is now trying to figure out ways to boost inflation expectations. The mainstream media is reporting that the Federal Reserve wants to publicly declare their intention to seek a higher inflation rate so that Americans are encouraged to spend more before their money is worth less. Unfortunately, what the mainstream media fails to realize is, not only will their money soon be worth less but it will literally become worthless.

If the Federal Reserve doesn't immediately raise interest rates dramatically, there is serious risk of the current "meltup" turning into hyperinflation before the end of 2012. The Federal Reserve's words can no longer control the present situation. They are saying they want inflation so that when massive inflation does arrive, it appears as though they still have control. With gold up 19% and silver up 38% since NIA's July 28th article "Gold and Silver Capitulation is Near" in which we said, "the big move to the upside (for gold and silver) is right around the corner", it is obvious that the Federal Reserve has completely lost control of inflation and a major currency crisis is already underway.

The world is flooded with excess liquidity of U.S. dollars. Up until now, Americans have been blessed by the fact that the world has been hoarding these dollars, believing they are a safe haven during these uncertain economic times. The world's confidence in the U.S. dollar and strong demand for U.S. treasuries despite the need for the Federal Reserve to monetize our $13.6 trillion national debt will one day be looked back at as the most mysterious paradox of our generation.

The average American today is pouring money into U.S. treasuries. They got crushed when the dot-com bubble collapsed, they got decimated when the Real Estate bubble burst, and now they are loading into dollar-denominated assets. Simultaneously, the Federal Reserve is trying to destroy the purchasing power of the U.S. dollar. The only thing the Federal Reserve should be focused on today is preventing hyperinflation, because hyperinflation always leads to complete societal collapses.

Almost all American investment advisors tell their clients today that government bonds are the "safest investments there are" because they "are backed by the full faith and credit of the government". It is very common for investment advisors to recommend to their clients that they put 25% or more of their assets into U.S. government bonds and keep another 25% of their assets in U.S. dollar cash. Yet, there are almost no investment advisors in existence who recommend to their clients that they put more than 5% of their assets into gold.

Investors who only put 5% of their assets into gold might find that they only retain 5% of their purchasing power in the future. Neither NIA nor its co-founders are investment advisors, but our commentary has consistently highlighted our beliefs that there is no such thing as owning too much gold. NIA believes that individual investors' portfolios should be 100% in assets that will retain or increase in purchasing power during hyperinflation. The only question today that smart investors should be asking themselves is what percentages do I put into physical gold, physical silver, mining stocks, agricultural commodities, etc.

Obama continues to state he will not raise taxes for those earning less than $200,000, yet he is doing absolutely nothing to reduce government spending. With China and Japan getting ready to pull the plug on the U.S. dollar, future U.S. deficit spending will have to be paid for by outright money printing. The price inflation that is ahead as a result of monetary inflation is the absolute worst thing that can happen to middle class Americans. Obama's inflation won't hurt the wealthy as much because the wealthy, if they become educated and act quick enough, can still preserve the purchasing power of their wealth by buying gold and silver.

Obama's plan to reduce our budget deficit from $1.6 trillion today down to $752 billion in 2015 is contingent on 5.58% annual GDP growth and interest rates on our public debt of only 4.1%. The only way we will see 5.58% annual GDP growth is with massive inflation and when inflation spirals out of control, so will interest rates. There is no doubt that our nation's budget deficit come 2015 will be substantially higher than it is today, if our nation survives until then
 

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