Economic Collapse

Here’s an interesting TV-interview with Max Keiser on the latest developments in The demise of the dollar released by The Independent that I’ve written about here at Mellgren.com. As I wrote earlier I believe the collapse of the US dollar will happen a lot faster than 2018 as The Independent suggests, and Max Keiser agrees on that as well:

Here’s a short radio interview with GATAs Bill Murphy on the latest developments in The demise of the dollar released by The Independent that I’ve written about here at Mellgren.com. Listen to Bill in your web browser or download this MP3-file.

Dear readers. This might be the biggest financial news to hit the Internet since Bear Stearns and Lehman Brothers. I, and many other experts with far better understanding than I have, such as Catherine Austin Fitts and Krassimir Petrov, have been saying this for years: Oil will not be priced in US dollars for long. When the move away from the Petrodollar happens, the US Empire will fall. From The Independent:
Read the rest of this entry »

Here is a great interview with legendary Jim Sinclair of JSMineset.com on the inflation vs deflation debate:

• Download Mp3-file
• Listen in your browser.

From the kingworldnews.com website:

“Legendary Jim Sinclair known as Mr. Gold for his remarkably accurate timing regarding the gold bull market of the 70’s is the Founder of jsmineset.com and Chairman of Tanzanian Royalty Exploration. In this interview James discusses inflation, deflation, hyperinflation, the U.S. Dollar, gold, silver, social unrest, the Federal Reserve, commercial banks incorrectly positioned on the COT, fraudulent bank balance sheets, the equity market, future opportunity, gold and silver shares and much more. King World News thanks Jim for being so gracious with his time.”

G22, Special Drawing Rights, Future of the Dollar: Jim Rickards, director of market intelligence for scientific consulting firm Omnis, shares his outlook for the dollar.

Important quote:

“The problem is, when you own gold you’re fighting every central bank in the world. Central banks hate gold because it limits their ability to print money.”

Interesting take on the need for inflation for the US debt mountain and the risk for hyperinflation as well as the role of the IMF Special Drawing Rights discussed during the G22 meeting.

Big Inflation Coming 2, by Adam Hamilton
http://www.zealllc.com/2009/biginf2.htm

“The bottom line is the panic money-supply growth in the US has been very excessive, running at multiples of economic growth. And in the case of narrow M0 money, the doubling in 4 months is literally unprecedented. It scares me. With so much new money in the system, and the Fed totally unwilling to undo this terrible inflation over the 6 months since, rapidly rising prices are inevitable.

We’re on the verge of the first inflation scare of the modern era, a time when epic panic buying into hard assets and their producers is increasingly likely. Investors who ignore these dire tidings will probably get crushed by the inflation. But investors who prudently study the dangers and deploy their capital to thrive in them will make fortunes. Mark my words, the money-supply data shows big inflation is coming.”

Remark: Remaining fear-less is the best medicin against all crises.

A friend of mine just sent me this article. I’m glad he did. This is a very to-the-point no-bullshit kind of article of the Austrian School from Asia Times Online. My only wish is that journalism i Sweden and the rest of “the west” would be as up front as this…

Dollar’s fate written in history, by John Lee
http://www.atimes.com/atimes/Global_Economy/KF04Dj03.html

Debt-based monetary systems are inherently unstable. Money is created out of thin air by the banks and lent to government, consumers and businesses. In order to service and repay those debts, the borrowers take on more debts. Asset prices are inflated, and the vicious cycle continues until the debtors are unable to borrow or the banks are unwilling to lend.

At that point the system snaps, everything is sold off, and we have a financial crisis at hand. Here, we examine what happens to equity and currency markets in the aftermath of financial crisis and deduce what will be the likely outcome for the United States as it emerges from the present crisis.

by Ellen Brown

Global Research, May 19, 2009
http://www.globalresearch.ca/index.php?context=va&aid=13673

“It was horrible. Horrible! Like lightning it struck. No one was prepared. The shelves in the grocery stores were empty. You could buy nothing with your paper money.”
– Harvard University law professor Friedrich Kessler on the Weimar Republic hyperinflation (1993 interview)

Dear readers,

The End of the Dollar is really starting to hit world news. I think this will hit main stream soon and by autumn or early winter or so everyone will question the US dollar. However, this will put strain on ALL currencies, so if you have savings, NOW is the time buy some cheap gold while its still available.

Here are a few interesting headlines:

Chavez seeks Arab support for oil-backed currency
This is really important, since the “demand” for USD is often related to oil only traded in USD. I very much recommend this article by Austrian-school Krassimir Petrov:
The Proposed Iranian Oil Bourse

“The American Empire depends on the U.S. dollar. The proposed Iranian Oil Bourse
will accelerate the fall of the U.S. dollar and hence the fall of the American Empire.”

“When in 1971 foreigners demanded payment for their dollars in gold, The U.S. Government defaulted on its payments on August 15. The popular spin of this default was that “the link between the dollar and gold was severed”. The proper interpretation is that the U.S. Government went bankrupt, just like any commercial bank is declared bankrupt.

However, by doing so, the U.S. declared itself an Empire. It had extracted an enormous amount of economic goods from the rest of the world, with no intention or ability to return those goods. The world was effectively taxed and it could not do anything about it: it could not force the U.S. in bankruptcy proceedings and take possession of its gold and other assets for payment, nor could it take forcefully what it was owed by declaring war and winning it. Essentially, the U.S. imposed on the world an inflation tax and collected an imperial seigniorage!

From that point on, to sustain the American Empire and to continue to tax the rest of the world via inflation, the United States had to force the world to continue to accept ever depreciating dollars in exchange for economic goods and to have the world hold more and more of those dollars, while those dollars depreciated. It had to give the world an economic reason to hold dollars, and that reason was oil.”

Also note the efforts from China to push for a New World Currency:

• Dollar falls on Geithner’s openness to China’s currency proposal
• China expands currency swaps to avoid trading in dollars

And:

• Russia backs partial return to gold standard

Interesting times…

I’m not a Fox News fan, but this little video is really good. They hit the nail on the head: