FINANCIAL COLLAPSE FEAR MONGERING NEEDS TO STOP

[Rassah]

Don't be afraid of studying a bit of basic economics no matter how much some fear mongerer wants you to think otherwise, the more you are educated the better you can spot people trying to push you in directions for their own benefit.

Yeah, I have a bachelor's and a master's in this kind of stuff, and your OP is still pretty shit. It's not wrong, mind you. Inflation and deflation are two actual real options with real theories, math, and consequences behind them. It's just that the inflation school tends to omit the consequences when it teaches about it, and use rather misleading words, like "hoarding" to try to persuade (we typically call that "saving").

[MindGrenade]

Please take a look at the housing price index in Australia... You will find it will make the graphs you see in the OP of a so-called "stable economy" seem not so stable.

[asfbhero]

The Fed is stuck.  If they take their printed money and put it into the economy, give it to the people. it will get spent, and the V will go up, creating a dangerous inflation.  So instead they just leave it with the banks until they can hopefully repair their balance sheets before everything goes bust again.  Unfortunately the banks are just blowing up the same bubble as last time.  The Stock market is higher, yet we are damn sure not better off.  And don't even get me started on the Derivatives WMD.

[Dr Bloggood]

The Fed is stuck.  If they take their printed money and put it into the economy, give it to the people. it will get spent, and the V will go up, creating a dangerous inflation.  So instead they just leave it with the banks until they can hopefully repair their balance sheets before everything goes bust again.  Unfortunately the banks are just blowing up the same bubble as last time.  The Stock market is higher, yet we are damn sure not better off.  And don't even get me started on the Derivatives WMD.

Yeah, that derivatives bubble is just incredible, I could hardly believe the numbers. It was actually the only time I had ever seen the word "quadrillion" in use...

[Rassah]

Yeah, that derivatives bubble is just incredible, I could hardly believe the numbers. It was actually the only time I had ever seen the word "quadrillion" in use...

It's too bad Bitcoin can't get into the derivatives market. It Bitcoin market cap ever got to one quadrillion... *drool*

[Dr Bloggood]

Yeah, that derivatives bubble is just incredible, I could hardly believe the numbers. It was actually the only time I had ever seen the word "quadrillion" in use...

It's too bad Bitcoin can't get into the derivatives market. It Bitcoin market cap ever got to one quadrillion... *drool*

Unfortunately, nobody can be stopped from giving out an option or other derivatives on BTC. If BTC is successful enough, the derivatives will come...

[teukon]

Yeah, that derivatives bubble is just incredible, I could hardly believe the numbers. It was actually the only time I had ever seen the word "quadrillion" in use...

It's too bad Bitcoin can't get into the derivatives market. It Bitcoin market cap ever got to one quadrillion... *drool*

Unfortunately, nobody can be stopped from giving out an option or other derivatives on BTC. If BTC is successful enough, the derivatives will come...

They're already here for the well-connected.

I have some Bitcoin derivatives with my personal broker Mr. Zhou.  Thanks to high leverage these make up the bulk of my savings.  I've also got a lot of Martian real estate and some Mt.Gox shares.

[wittonline]

Can you comment on the validity of the shadowstats?

There's no need to. They simply calculate (at least in this case) CPI based on how the government calculated inflation in 1990 and separately in 1980, after Federal Reserve Chairman Paul Volcker had the U.S. Bureau of Labor Statistics change the way the calculated the CPI.

I can't speak for their calculations on middle 20% unemployment figures though. If someone can legitimize or justify how they get there, I'd love to hear!  

This week Forbes did have the balls to come out this week and say that the real unemployment rate is DOUBLE the official rate from the U.S. Bureau of Labor Statistics, putting it over 14%!

[pungopete468]

I would love to believe that this dream can continue onward to infinity. Unfortunately it won't... This system is buckling hard right now and there is no way to save it.

The charts in the OP aren't a good indication for the actual health of the system. The downfall of this system will be related to major international tensions. Natural enemies have the power to destroy each other. The incentive is measured by the amount of relative damage caused inverse to the damage sustained.

The USA doomed us all to this outcome when it violated the Bretton Woods Agreement.

[sporket]

^I already invested in 5 55-gallon drums of potable water, 2 ARs, shitloads of ammo, 3 bigass bear traps, and a lovely Eternal Care^TM cemetery plot for me and the missus.

I see the first cracks of imminent economic collapse, our doom creeping closer with the cold clockwork precision of a ticking egg timer -- to snap our spindly necks like a sprung rat trap.

I'm scared, pungopete468!  What should I do?!

[pungopete468]

^I already invested in 5 55-gallon drums of potable water, 2 ARs, shitloads of ammo, 3 bigass bear traps, and a lovely Eternal Care^TM cemetery plot for me and the missus.

I see the first cracks of imminent economic collapse, our doom creeping closer with the cold clockwork precision of a ticking egg timer -- to snap our spindly necks like a sprung rat trap.

I'm scared, pungopete468!  What should I do?!

There's really nothing you can do outside of what you are already doing. Don't forget to buy books...

Gold isn't safe from confiscation, nothing of any significance we do in the financial system is anonymous anymore. There's really no good options on the table.

[GigaCoin]

This is complete bullshit because the real wages in Australia haven't kept up with inflation.

Use REAL wages data not fake gov data

Cost of living in Australia is beyond insane and wages haven't kept up

[Bit_Happy]

It's not FEAR MONGERING if we really are on the brink of a FINANCIAL COLLAPSE.
The hardest part is the timing, since the "intense pain" has been delayed for so long.

[aminorex]

It's not FEAR MONGERING if we really are on the brink of a FINANCIAL COLLAPSE.
The hardest part is the timing, since the "intense pain" has been delayed for so long.

The interesting thing which shadow stats point out is that we are already, even now in a condition of collapse.  The condition of the current generation is inferior to the condition of two prior generations, the boomers having enjoyed the peak and squandered their patrimony.  Primarily hedonic adjustments offset this.  (They are a real thing, with real effects on quality of life, but they make the numbers incommensurate, and thus make historical reasoning corrupt.  Hedonic adjustment factors should be separate series', for econometric purposes.)  The collapse which is so widely feared is just an acceleration of existing trends.  Pain which increases gradually is less directly objectionable than pain with immediate onset, but the effect is no less debilitating.  And the acceleration is present, measurable.

[Bit_Happy]

It's not FEAR MONGERING if we really are on the brink of a FINANCIAL COLLAPSE.
The hardest part is the timing, since the "intense pain" has been delayed for so long.

The interesting thing which shadow stats point out is that we are already, even now in a condition of collapse.  The condition of the current generation is inferior to the condition of two prior generations, the boomers having enjoyed the peak and squandered their patrimony.  Primarily hedonic adjustments offset this.  (They are a real thing, with real effects on quality of life, but they make the numbers incommensurate, and thus make historical reasoning corrupt.  Hedonic adjustment factors should be separate series', for econometric purposes.)  The collapse which is so widely feared is just an acceleration of existing trends.  Pain which increases gradually is less directly objectionable than pain with immediate onset, but the effect is no less debilitating.  And the acceleration is present, measurable.

I'm old enough to remember the promo for a late-1980's book called "The Great Depression of 1990".
The author was wrong and the 90's produced the biggest Bull (stock) market in American history.
I tend to expect the collapse to be dramatic and obvious. Your view that it's here already* is really interesting.
*Of course the Gov is broke, but that is nothing new.