Home Forums Hunting & Shooting Hunter's Campfire Bernanke warns of devastating economic collapse

Fed Chairman Ben Bernanke warned on Monday that there is a "real and growing" threat that skyrocketing U.S. debt will cause a catastrophic economic implosion if swift, bold action is not immediately taken to stop the fiscal insanity in Washington.

According to Bernanke, the moment is rapidly approaching at which something will have to give, one way or another. Our exploding deficits will have to be accounted for at some point.

Bernanke: "The only real question is whether these adjustments will take place through a careful and deliberative process... or whether [they] will be a rapid and painful response to a looming or actual fiscal crisis."

In other words, thanks to Democrats tripling and quadrupling the national debt in just two short years to illegally take over and destroy every industry they could get their hands on, we are now on a nearly irreversible collision course with national bankruptcy and utter financial ruin.

And the only solution is to do what the Tea Party movement has been advocating all along--make drastic, sweeping cuts in the size and scope of government--starting with the programs the Federal Government had no authority to create under the Constitution in the first place (like ObamaCare).

Bernanke also suggests simplifying our monstrosity of a tax code, which will also never happen as long as Democrats are still allowed anywhere near positions of power (because the tax code is how they illegally exert nearly all of their control).

http://www.examiner.com/conservative-in-national/bernanke-warns-of-devastating-economic-collapse

This from the same guy who's plan to force the markets up is to print more money.

But if he's gonna be an advocate of tax simplification, I'll cut him slack on that issue.

Tis always nice to have a couple days advance warning though.

there's been handwriting on the wall for some spell


inflation is in the pipeline, you're seeing prices start to move significantly based just on what comes out of the FOMC, dollar is taking it on the chin, cause they've indicated they're gonna clone dollars.


was gonna sell my gold, but isaac said it would be a good idea to sell so I held it, I ain't bucking those odds...grin

Ol' Ben's just figuring this chitt out eh?

Not a good time to change jobs then?

News Flash:

Bernanke Joins Tea Party!!

This information must be disseminated again and again, so that come the November elections, no voter ignores it.

Glen Becks charts show Ben Bernanke is telling the truth. If the Bush tax cuts are not passed 2011 will be a devastating year.

Doc

It's not an Obama thing, it's a Keynesian economics thing. John Maynard Keynes is the guy who said in the 1930s (along with other equally stupid stuff) that when you're in trouble because you're been spending too much, you can get out of trouble by spending even more. Hence, every politician since then (except Ron Paul, of course) of whatever party has been a Keynesian economist.

If McCain had won instead of Obama, he'd have done the same thing. Nixon, Ford, Reagan, Papa Bush, and Baby Bush have all been pushing the country down the Keynesian path toward ruin just like all the Democrats, because it gives them more power and influence to spend more money.

Whether the "Bush tax cuts" are extended or not is going to have no measurable effect. The numbers by now are so big that the conclusions are unavoidable--apparently even to some Keynesians: either the government is going to repudiate its debt (dump your Treasury bonds and bills while you still can!) or we're headed down the road to hyperinflation, perhaps of such magnitude that eventually the government will be able to "pay off" the entire national debt with a single ounce of gold.

From a real-world perspective, those two options are pretty much indistinguishable.

The only question is whether it'll happen on Obama's watch (in which case the Republicans will blame Obama and the Democrats will blame Baby Bush, and both will be right), or whether Obama will be able to ooze out of office and the Republican who follows him will be stuck with it (in which case the Republicans will blame Obama and the Democrats will blame the new guy, and both will be right).

A little late Ben?

Anyone get the impression that Bernanke is doing a whole lot of "oh, schit... " lately?

While at the UW-River Falls about 40 years ago, we had to take a couple senior courses called 'Great Ideas'.. One was the study of Keynes - and the flaming lib prof was practically foaming at the mouth in his praise of JMK..

I gave him what he wanted to pass the stupid-azzed course, then LMAO afterward... What a waste of time, money and credits.. Absolute liberal BS trash...

Ben is correct about a pending implosion, but the cause won't be from his BS.....

Remember I posted that tere was a behind the scenes reason for the rats jumping ship on Obama ??

Want to know the real driving force behind the recent big run in gold ? (only a warmup, BTW....)

Here ya go :

Norcini, Sinclair - Financial Hurricane To Collapse the System
King World News conducted an interview today that included comments from Jim Sinclair and Dan Norcini regarding incredibly important events that are unfolding in both the financial system and the gold and silver markets. This interview describes what may very well bring the financial system to its knees.

October 6, 2010

Dan Norcini:

�Where we are at on the charts with regards to the precious metals is that they are blowing through resistance levels like they are not even there. If we can clear $23 on silver, there isn�t much resistance until $25 and if silver plows through $25, then you have a realistic possibility of it running up to $35.�

Because we are at new highs in nominal terms on gold, we can�t go back and reference charts so we are projecting levels. The next technical resistance is at $1,380 with light selling possible at $1,350.

The primary drivers in gold and silver today had to do with concerns over currency devaluation as well as securitized debt problems and the implications associated with it. Here is what Jim Sinclair had to say:

Jim Sinclair: �Each time that happens an item of collateral on the securitized debt publicly dies. That is why this is dynamite that people will realize very soon. This is one reason gold is up hard today.�

Norcini continues:

�That collateralized debt obligation is now effectively worthless because the collateral behind the debt can no longer be collected. The banks cannot go and get it.

Let�s say you have 10 mortgages at $1 million a piece, the sum total of those mortgages are $10 million. So, the banks took the 10 mortgages and bundled them together into a collateralized debt obligation or CDO with a face value of $10 million.

They then sold that new entity that they created to an investment group of some sort, a pension fund, hedge fund, etc. promising them a yield of let�s say 7%. The sales pitch would emphasize the fact that this CDO was backed by real collateral. In the event of loan defaults by the borrowers, the banks would tell the buyer of the CDO that the collateral behind the loan could be sold to recapture any potential losses on the part of the purchaser.

Everything seemed to work fine until the defaults began and the foreclosure process kicked into high gear. The foreclosure process has exposed fatal flaws in the system and the flaw is that the banks cannot prove clear ownership of the mortgage.

Consequently, they are then barred from foreclosing on the property. Because they can no longer foreclose on the properties, the CDO is now effectively worthless.

The hedge funds and the pension funds cannot now sell these CDO�s on the open market, so how are they going to recover their original investment? Perhaps you may say that won�t be a problem because these instruments were insured. The problem is now the credit default swap or the insurance policy that was purchased to protect against default assumes that the insurer has the financial wherewithal or resources to make good on the claim.

If there were only a small number of these problem CDO�s this would not be an issue. But as the number of the foreclosures continue to skyrocket, and more and more banks are prohibited from seizing the collateral behind the property, the sheer magnitude of the number of claims presented to the insurer will overwhelm their balance sheet.

In effect what you have is an insurance company which doesn�t have enough money to pay off the claims. Compounding the problem is the fact that the CDO�s and credit default swaps related to these claims form a mass network of interdependence. This then ripples through the entire system and creates a domino effect which can cause the failure of entities creating the next financial crisis.

Ultimately the Federal Reserve will be asked to step in and buy up the now worthless CDO�s and put those on its balance sheet. In order to do this the Federal Reserve will have to engage in massive quantitative easing, taking onto its balance sheet the worthless CDO�s in exchange for newly issued treasuries.

This of course will have a horrific effect on the US Dollar which is why gold and silver are heading much higher.

This interview with Dan Norcini turned out to be an incredibly concise explanation of a financial hurricane that threatens the entire system. Make sure you are insured by owning physical gold and silver.
---------------------------------------------------------------

Fellas, like I've said many times...I would not touch any bank stock with a ten foot pole, as they are ALL esentially bankrupt. My guess is that BAC is going to be the first public victim.

The can can't be kicked down the road any further, it ends with Obama at the helm, and all of the rats with him have already jumped ship.

Tony

Say what does that guy know Obambio says it's all getting better and the sheeple are dancing to that song.

2011 may be the worst year that the US has ever seen. With severe financial woes comes more violent crimes.

Unless the FED steps in, the finacial system will totally collapse. That is a fact.

They will step in by printing money like noone has ever seen. They have to, if you have a pension, you can bet that the pension fund manager has some of this worthless junk as a holding.

The reality is even if the FED bails it all out, it is still worthless.....

Heaven help us all.

Tony

I totally agree, but tell that to the boomers when it means cuts in Social Security and Medicare and see how it goes over. Nobody wants to touch that issue with a ten foot pole.

If you listen to MSM, Hussein & Co., and the (D) party loyalists, everything is getting better and we'll have nothing to worry about, unless the (R) party takes Congress this winter, in which case we're screwed.

If you listen to FauxNEWS, Boehner, DeMint, and (R) party loyalists, everything will be fine as soon as the (R) party takes Congress this winter, but we're screwed if they don't.

Now, even Bernanke is starting to sound like some "doomsayers" out there that say we're screwed regardless.

The fact is, no one knows.

If the system collapses, no one can predict what will happen or what it will look like; and most are far too afraid to even contemplate it.

If she does go down, it won't matter, because even if you knew what to do, you still wouldn't know what to do.