Economically – That Ain’t The Way To Have Fun, Son…

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Cross-Posted at Right Wing News

davidbuckner
TheBlaze TV – David Buckner

 

Oh, how I can relate… Can you say Wiemar Republic?

Tripping through economic news this morning, I came upon a Financial Times piece entitled: Global economy in ‘epic scale’ change, says IMF’s Lagarde. Basically, it states that the whole global landscape is in upheaval, but not to worry… Since the US has decided not to taper the printing of its money, everything will be just fine. If you believe that, then we are done for:

The global economy is experiencing “transitions on an epic scale”, the International Monetary Fund managing director said on Thursday, warning that turbulence in emerging markets could knock 0.5 to 1 percentage point off their growth.

Christine Lagarde’s remarks show the damage done to emerging markets by a recent round of “taper talk”, over the possibility of the US Federal Reserve slowing the pace of its asset purchases and their vulnerability to future changes in the pattern of global capital flows.

“The immediate priority is to ride out the turbulence as smoothly as possible,” said Ms Lagarde. “Currencies should be allowed to depreciate. Liquidity provision can help deal with dysfunctional market behaviour. Looser monetary policy can also help.”

But she warned that countries with inflationary pressures – such as Brazil, India, Indonesia and Russia – have less scope to use monetary policy and that high debt and deficits mean many developing countries have little space for fiscal stimulus either.

“Overall, the global outlook remains subdued,” said Ms Lagarde, in her traditional speech ahead of the annual World Bank and IMF meetings in Washington next week. “In many of the advanced economies, however, we are finally seeing signs of hope. Growth is looking up, financial stability is returning, and fiscal accounts are looking healthier.”

The impact of a slowdown on US Federal Reserve asset purchases had been expected to dominate this year’s annual meetings but the Fed’s decision to hold off on tapering has removed that focus.

Instead, Legarde says we should fear the US government shutdown. She says that raising the debt ceiling is “mission critical” for the world economy. Really? Don’t you mean for the global elitists? What a bunch of crooks, liars and fools on a Progressive scale. If the US doesn’t stop the printing presses, we are toast. In fact, it may already be too late.

David Buckner, the founder and CEO of Bottom Line Training and Consulting, an adjunct professor at Columbia University, and the author of “Permission to Think,” explained on TheBlaze TV that hyperinflation may be right around the corner, within a year:

Buckner said that in discussing hyperinflation, people often refer to the Weimar Republic, Zimbabwe, and Bolivia, but say “it could never happen here” because a “certain kind of layering has to occur” that America hasn’t seen.

That layering, he said, or the “recipe” for hyperinflation, is:

1) Economic Implosion

2) Collapse in tax revenues

3) Raise taxes

4) Lenders unwilling

5) Austerity or print

In truth, all of these have already occurred. Some may squabble on the finer points, but if they faced the truth, we are there. If you haven’t read the excellent article at TheBlaze, I suggest you go there right now and read it.

“And everybody says, well you’re not seeing hyperinflation,” Buckner said, but that’s because, “the interest rates are so low, nobody’s putting that cash back into investments in the United States. But they are putting it into desperate countries in Europe. They’re putting it into other investments. And the money’s going out there, so the second Bernanke raises the interest rates, all of the sudden the money sucks back into the United States and we have hyperinflation.”

Beck asked Buckner if we need an “event” of some sort to trigger such a meltdown.

“We’ve had an event, but…we’ve become comfortably numb,” Buckner said. “So there’s been a lot of hidden stuff that’s going on. The treasuries continue to go out, and Bernanke continues to buy debt. [But] anytime he starts to back off the markets freak out, because they know. The markets know. But we don’t, the people don’t. People who are retired, pensioners, elderly, people who are holding money are going to be devastated.”

When Beck asked for a timeline, Buckner said that by January of 2015, if not by October in 2014, we are likely to see “an increase in interest rates which will start the domino.”

“When Bernanke announced that there would be a tapering, the markets just dropped because they knew that even if the interest rates changed one infinitesimal amount, it was the beginning of the domino,” he said.

“How fast do the dominoes go down?” Beck asked.

“Three months,” Buckner replied without hesitation. “You listen to many of the economists — within three months. And it’s going to be perception more than real price. You’re going to see hoarding, you’re going to see fear. It’s not the actuality. So if they can put a glaze over everybody…it’s may slow it down. That”s the problem, is we’re dealing with an illusion. It’s an illusion of what is real. We don’t have the money. So the interest rates go up, you’re going to see a domino.”

Indeed, the dominoes are falling and fast. Buckle up, folks. You’ve been warned. Ecomonically, that ain’t the way to have fun son. Wiemar, here we come. We can’t afford to be innocent and naive any more. We better cowboy up and face the enemies within and clean house. Progressives want nothing less than a total collapse to reshape America into their ideal Marxist state. America is calling the Tea Party and Constitutional Conservatives to the front lines – we better hold the line. Gut the Progressive GOP.

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Comments

  1. we are in the fifth ring of hell…food,gold,something to protect your self with…put it on your shopping list…

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