| nov 22 2008 | | G20 | Oh! All the world's leaders meet to discuss a problem that for over a year we have been told is a small sub-prime mortgage issue with no ramifications for the greater economy.
Can we now admit that there is a problem? The experts that predicted a soft landing and a Goldilocks economy have been well and truly discredited even though they are still on the media saying that each passing week is a bottom and an ideal time to buy.
Watch this clip.
http://www.youtube.com/watch?v=2I0QN-FYkpw
See how these assholes scoff, deride and scorn Peter Schiff. I have been reading his stuff and others like him who predicted this madness for years but never got their view expounded on the media because it upset the players who were making money even while they ruined the world economy.
So do we have any faith in the people that caused this mess coming up with a solution? A bit like handing out condoms to a rapist.
China and Russia are opening their markets even as the Evil Empire is turning to socialist solutions. Nationalising assets, bailing out everything in site, taking equity stakes in private companies. Can they take over everything? First their banking buddies, then insurance companies, now car companies. What next? Airlines, steel companies, retailers truckers, farmers. Who is allowed to fail and who must be saved? Depressions occur to remove malinvested capital. The bad businesses fold and new ones take their place. Propping them up just prolongs the pain and costs the public their tax dollars. Japan had their zombie companies for decades.
The world bankers have agreed to run huge deficits, print money recklessly, crush savers with near to zero interest rates and manipulate currency, stock markets, bond markets, bullion. I would not be surprised to see them revert to the tried and failed process of wages and price controls. In short, in stead of doing little and letting this play out, they want to be seen to be doing something, so will make this disaster much worse. We have been watching these clowns on the TV telling us how they are going to fix everything for a while now. Well you are going to be hearing a lot more from them.
My sources agree that we are headed for a period of deflation for up to two years with inflationary effects disguised by the balancing of liquidating assets. You print a ton of money as a ton of assets vanish from the derivatives losses into the black hole. However long this takes, at some stage when there are no more bad assets left the balancing scales plunges with all the fiat currency that has been created and hyperinflation will appear like a whirlwind. In weeks if not days currencies will become worthless. Let's hope the leaders have a plan for this event. Some how I don't think so.
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