Monday, April 04, 2016

No Economic Collapse Yet. Maybe Tomorrow?

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Dollar Collapse News! China Says "No Dollars" For the New Gold Backed Yuan!!  
Published on Apr 19, 2016
In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars. The new Yuan will be introduced on Tuesday, April 19.
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So, Where is the Collapse?
Published on Mar 31, 2016
Bill Holter from JS Mineset is back to discuss the current state of global economic affairs, and I have one simple question for him. Where is the collapse!?
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 Russian General Confirms That The Dollar Collapse In 28 May 2016
Published on Mar 31, 2016
Russian General Confirms That The Dollar Collapse In 28 May 2016
The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth, our work, our food, our government,even our relationships are affected by money. And sure The Dollar Collapse And The Economic Collapse Will Be In 28 May 2016 .
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No global economic crisis yet, but the ingredients are there
The days when one country’s economic woes could be insulated from the wider world have long gone. China’s problems could have a fearsome domino effect
Larry Elliott, Economics editor
Wednesday, 20 January 2016
Food vendors wait for customers at a Beijing market. China’s economy grew at its slowest rate in 25 years last year. Photograph: Kevin Frayer/Getty
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Another day, another financial spasm. In London, New York, Shanghai and Frankfurt the story was the same: shares dumped and the oil price crashing to its lowest level since 2003 on fears that China is heading into a recession that will drag the rest of the world economy down with it.
Despite the fresh sell-off in financial markets on Wednesday, this is far from a done deal. For the doomsday scenario to materialise, China would need to have a hard landing, rather than simply a bumpy one, the rest of the world would have to be ripe for its own crisis, and there would need to be a transmission mechanism for delivering a problem centred on east Asia to the rest of the global economy.
For the time being, the theory that the events of the past three weeks herald another 2008-style crisis is just that: a hypothesis. But make no mistake, if the conditions for a recession are right, it would move around the world like a pandemic.
That, after all, is the essence of globalisation. Economies are far more integrated than they were half a century ago, when capital controls, trade barriers and extensive public ownership shielded national economies. Today, changes in political philosophy and technology mean there are far fewer impediments to the free movement of goods – and virtually none at all to the free movement of money.
So, when one country runs into problems there is always the risk of contagion. That was true of Thailand in 1997, when the collapse of its currency, the baht, quickly had a domino effect across south-east Asia.
It was true also of what appeared to be a local difficulty in a much bigger economy. Ben Bernanke, then chairman of the US Federal Reserve, was dismissive in 2006 of the notion that problems with sub-prime mortgages posed a threat to the American, let alone the global, economy. How wrong he was.
Britain’s direct exposure to China is relatively modest. It is not in the top five overseas markets for UK companies, and only 4% of UK goods and services go there. If China’s economy hits the wall, some jobs would be at risk but it would not be nearly as serious as a recession in the United States or the eurozone. The US has more at stake, but even so exports to China account for only 1% of GDP.
Britain’s banks are, however, a different story. UK banks – HSBC and Standard Chartered in particular – have lent lots of money to China to the extent that they have more at risk than any other country, should the loans turn sour. China has a mountain of bad debts.
So how would the crisis manifest itself? One way, according to Nariman Behravesh, chief economist at analysts IHS, would be if China stopped trying to support its currency, the yuan. The result, he says, would be a devaluation of 15-20% that would make China’s exports cheaper but those of every other country more expensive.
This would be the opening salvo in a full-blown currency war. Other countries would retaliate and the US would impose trade sanctions on Chinese goods. Deflationary pressure would intensify as Asian countries dumped their excess production on the rest of the world.
The UK steel industry has already had a taste of this. China is producing more steel than it needs for its own economic growth and is selling it at cut-price rates. British producers have found it impossible to compete.
That, though, would only be the start of the mayhem. Many countries in the emerging world have borrowed heavily in dollars. China itself has $1tn of dollar-denominated debt. If the yuan and other emerging market currencies are devalued, then the value of these dollar debts will rise, putting severe strain on all the affected economies and unbearable strain on the most vulnerable.
Zhu Min, deputy managing director of the International Monetary Fund, sketched out in Davos on Wednesday what would happen next. Quite simply, every investor would stampede for the exit at the same time. Liquidity in the global economy would dry up, he said, noting: “That scares everybody.”
It certainly does. Around the concrete bunker hosting the World Economic Forum, the masters of the universe were quietly checking the latest from the financial markets on their smartphones and tablets. A few eyebrows were raised when the Dow’s fall reached 500 points.
Chief executives of multinational corporations should not, of course, need to be reminded of global interconnectedness. If they did, Nobel prize-winning scientists were on hand in Davos for a tutorial on chaos theory.
One of its ideas is that seemingly tiny events can have big impacts, so that a beating of a butterfly’s wing could lead to a hurricane on the other side of the world. China is a very big butterfly.
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Society's Five Stages of Economic Collapse
David Meyer
Society as we know it will break down and collapse in a five stage process outlined here. While it can be accelerated by certain events like war, a natural disaster, pandemic, terrorist attack, or even an impending asteroid impact, history has shown that economic collapse will essentially happen in this five stage process. To survive the collapse, it is important to read and interpret the signs and understand what assets are important to the current situation so you can be prepared for the worst thereby allowing you to survive intact and with as little damage as possible.
STAGE 1. The Decay Begins
Everything is good and the economy is thriving. A high standard of living has been achieved. This is the way things should be. Goods are cheap and readily available. Everything seems to be in abundance. Stores are filled with retail items ready to be purchased. Life in general is good. The nation’s working infrastructure is solidly intact and working well. However, the idea that everyone is entitled to have what others have earned now permeates society. Redistribution of Wealth Policies are implemented and quietly woven into the fabric of society. Unchecked and under the guise of fairness and equality, these policies slowly decrease productivity and increase dependency on government entitlement and welfare programs.
Primary Assets:
1.Career
2.Home Value
3.Savings
4.Investments - Stocks and bonds
5.Health Insurance
6.Lifestyle Image
7.Good Credit Rating for Debt Accumulation
STAGE 2. The Slippery Slope
The economy goes into a slow but steadily increasing decline. Unemployment is on the rise. Ever increasing numbers of people receive government assistance in one form or another. People are paid not to work. Government spending has increased dramatically. The price of gold, silver, and other precious metals rise to prices unheard of just a few years earlier. Inflation reaches the double digit levels.
Primary Assets:
1.Cash
2.Precious Metals, Gold and Silver coins
3.Job Stability
4.Elimination of debt
5.Health Insurance
6.Home Equity
7.Automobile with good MPG
8.Acquiring secluded land more than 40 miles from densely populated areas
STAGE 3. It is Going to Get Worse
The total collapse of the economy begins after a significant and prolonged decline. The government implements price controls. Shortages on essential goods become widespread. Foreclosed houses sit vacant and deteriorating by the tens of thousands. Middle class neighborhoods begin to look like slums. The government begins to print currency to pay its bills and support the tens of millions on public assistance. Inflation increases even more and unemployment exceeds 25%. Banks and businesses fail at ever increasing rates. Nobody seems to have any money. Many are now homeless. Labor unions instigate strikes, civil unrest, and large scale riots. Government services are interrupted and unreliable. Local and national infrastructure is in decay. Violent gangs begin to appear and assert themselves. The government begins confiscation of firearms from law abiding citizens. Violence is everywhere. Cities and urban areas become very dangerous places to live.
At this stage, the country seems pretty much beyond the point of no return. However, things can still be reversed even at this stage if the right person at the top really believes in the basic fundamental concepts of Freedom, Independence, Liberty, and Individual Rights and is not afraid to do what is necessary to reverse the current trend. He will be vilified and hated because of his attitude toward personal responsibility, cutting entitlements, and ending welfare programs. Of course, if the right person were in power and did what needed to be done, none of this would have happened in the first place.
Primary Assets:
1.Gold and Silver coins
2.Cash
3.Job
4.Automobile
5.Home
6.Short term food supplies
7.Short term fuel stores
8.Firearms and ammo
9.Plans to relocate to a secluded rural hideaway
10.Small livestock - chicken, rabbit, fish...
11.A close network of like minded people
12.Survival knowledge and skills
STAGE 4. The Grab for Power
The collapse can transition to this stage at any time after Stage 3. Most of the middle class have lost everything. What used to be well manicured middle class neighborhoods are filled with the carcasses of empty houses damaged and destroyed by vandals. The nation’s infrastructure has been seriously neglected and is in need of a major overhaul. The power grid becomes unreliable. Rolling blackouts are a daily occurrence. You can no longer buy or sell gold or own foreign currency. Inflation is out of control. Now the economy collapses. There is a rush for everything and the shelves go empty in a matter of hours. Society falls into chaos. The control of urban areas shifts when violent gangs takeover control of the streets and urban neighborhoods. The government issues restrictive measures in an attempt to control the economy. Everything is in short supply and heavily rationed. Food and gasoline is very expensive and there are very long lines to get them when they are available. Affordable quality health care is non-existent and your job is a distant memory. You will do without what you are unable to provide for yourself. You will discover what it is to live in a third world country.
Primary Assets:
1.Relocation to the rural hideaway
2.Firearms and ammo
3.Long term food supplies (1 year minimum)
4.Adequate fuel stores
5.Security plan to protect the group and assets
6.Trained dog for security
7.A working knowledge of survival gardening
8.Survival knowledge and skills
Once all of the above has come to pass, the realization of the current circumstances at this moment must be all too obvious. It is too late to prepare at this point. What you did not acquire earlier, you are not going to possess now. Anything of value necessary for your survival has already been claimed. The situation gets worse… much worse.
Stage 5 is next… and it is not pretty.
STAGE 5. Freedom, Liberty, and Independence are Lost
The government implements martial law. Fighting between civilians and government forces break out nationwide. Maintaining more than a 30 day supply of food is considered hoarding food and is illegal. Severe poverty and starvation become a common sight. The government offers marginally acceptable food, water and shelter in exchange for your Freedom, Liberty, and Independence. Democracy ends and a Socialist form of government takes over under the guise of fixing society’s problems with the false promise that peace and prosperity will return better than it was just a few years ago. A Totalitarian regime assumes power and the individual freedoms and liberties once enjoyed by the people are completely eliminated.
Primary Assets:
1.Rural Hideaway
2.Security plan to protect the group and assets
3.Living below the radar in a community of like minded people
4.Firearms and the ability to use them
5.Guard dog for security
6.Survival knowledge and skills
7.A working and producing garden capable of feeding 150% of the group
8.A stable supply of clean water
9.Vegetable seeds for long term food production and barter
10.The will to live and survive in a harsh political climate
As you can see, priorities change as the world changes. Your most prized assets of today – your good credit, luxury automobile, and career are no longer important after the economy collapses.
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Also See:
The Coming Global Collapse in 2015!
 (Part 1)
14 October 2015
and
(Part 2)
02 November 2015
and
The Coming Global Collapse in 2016!
(Part 1)
07 January 2016
and
Food Shortage, Then Anarchy!
(Part 2)
03 September 2014
and
Economic Collapse! How Did We Get Here?
(Part 2)
28 September 2013
and
Are We Facing a Global Financial Crisis?
31 May 2011
http://arcticcompass.blogspot.ca/2011/05/are-we-facing-global-financial-crisis.html
and
Financial Crunch! Economic Collapse!

(Part 1)
31 July 2008
http://arcticcompass.blogspot.ca/2008/07/financial-crunch-economic-collapse.html
and
(Part 2)
20 November 2008
http://arcticcompass.blogspot.ca/2008/11/financial-crunch-economic-collapse-part.html
and
(Part 3) 

25 January 2009
http://arcticcompass.blogspot.ca/2009/01/financial-crunch-economic-collapse-part.html
and

(Part 4)
17 April 2009
http://arcticcompass.blogspot.ca/2009/04/financial-crunch-economic-collapse-part.html
and

(Part 5)
23 June 2009
http://arcticcompass.blogspot.ca/2009/06/financial-crunch-economic-collapse-part.html
and

(Part 6)
23 August 2009
http://arcticcompass.blogspot.ca/2009/08/financial-crunch-economic-collapse-part.html
and

(Part 7)
30 November 2009
http://arcticcompass.blogspot.ca/2009/11/xxxx.html
and
(Part 8)
23 February 2010
http://arcticcompass.blogspot.ca/2010/02/debt-dynamite-dominoes-coming-financial.html
and
(Part 9)
28 August 2010
http://arcticcompass.blogspot.ca/2010/08/financial-crunch-economic-collapse-part.html
and
(Part 10)
13 January 2011
http://arcticcompass.blogspot.ca/2011/01/financial-crunch-economic-collapse-part.html
and
(Part 11)
29 April 2011
http://arcticcompass.blogspot.ca/2011/04/financial-crunch-economic-collapse-part.html
and
(Part 12)
28 July 2011
http://arcticcompass.blogspot.ca/2011/07/financial-crunch-economic-collapse-part.html
and
(Part 13)
04 April 2012
(Part 15)
02 November 2012
and
(Part 16)
23 April 2015
and
Recession? ... Depression? ... What is Going On?
(Part 1)
06 October 2008
(Part 2)
02 February 2009
and
(Part 3)
19 April 2009
and
(Part 4)
02 August 2009
and
(Part 5)
17 September 2010
and
(Part 6)
17 September 2010
and
(Part 7)
23 July 2014
and
Jobs, Jobs, Where are the Jobs?
(Part 1)
20 April 2010
and
The Poor - Prosperity Creates Poverty! 
(Part 1) 
and
(Part 2)
13 November 2013
and
How Do We Eradicate Poverty?
27 November 2012
and
Financial Crisis! The Culprit? Volatility in the Bond Markets!
14 May 2015
http://arcticcompass.blogspot.ca/2015/05/financial-crisis-culprit-volatility-in.html
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