U.S. Fiscal Meltdown in Spitting Distance: Laurence Kotlikoff

So let me get this straight...I shouldn't expect the 3% yeld on my 401k?

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Originally Posted by flan7211

Only plus to inflation is the ability to more easily pay off debt. That was the whole "green back" fight in the 1870's and 80's. Where agrarians argued that a more devalued dollar could help eliminate the debts they owed banks. While the hard currency types argued that it would destabilize the entire system. So if it hit that hard you wouldn't have an ounce of debt, but the following day banks couldn't loan money and business would collapse. So yes let's act on this before it's too late.

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This is true to a point with certain types of debt. The debt that is the most valuable when these situations arise is fixed interest debt such as a mortgage. However the truth of matter is that the lending restrictions have gotten to the point that it's hard for most to qualify for additional fixed interest debt.

The banks knew that this was coming and it's part of the reason that they tightened up lending restrictions. The people who are going to make out on bandits are people who have been able to buy property while the market has been down with fixed interest debt. They will get the benefit of inflation and the benefit of buying cheap property. It's going to be the biggest wealth transfer that has ever taken place in the history of the world. Just my .02

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Originally Posted by Elhuero

the U.S. has weathered tough times before, and we'll make it thru this as well.

but I do think it's going to get worse before it gets better.

like I told a classmate today. they'd get the budget fixed in a jiffy if there were half a million angry people with rifles on the national mall demanding results.

I am predicting that civil war will start on a small scale in wisconsin when democrats don't win in the next elections like all the union types are claiming. (that's possible trigger A, possible trigger B is obama losing the election)

riots will spread in the inner cities.

and when inner city welfare types and union mercenaries hit the streets they are going to get totally clobbered by american gun owner types defending their homes.

then cops, national guard and finally the military will be unleashed to impose marshal law, and they're gonna get clobbered too.

then I'll get that belt fed I've always wanted.

start building your food storage now.

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I don't think that you are to far off. I tell you what, let them stop sending welfare checks and you will the LA Riots in every major inner city across the country.

I'm only 31 with a young family, and I really tried avoiding thinking that it's going to be ok, cause its not. We don't have a capitalistic society any longer. 47% of Americans don't pay any income tax, and who knows what part of that number depends on public assistance.

We have seen the warning signs for a while now. Gold and silver (and JP Morgan fraudulently depressing silver) were a couple of the first signs. Google the term wealth cycles and read up on Michael Maloney. He nails the whole thing, and I think he is pretty spot on. There are 7 cycles of a currency, and the 7 cycle is when the currency is no longer of any value and the economy collapses. It's believed that we are in the 7th cycle now, and with Japan and oil prices, food inflations.... well the wheels are about to fall off. No longer a question of if, but when.

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Originally Posted by CO Retriever

IGoogle the term wealth cycles and read up on Michael Maloney. He nails the whole thing, and I think he is pretty spot on. There are 7 cycles of a currency, and the 7 cycle is when the currency is no longer of any value and the economy collapses. It's believed that we are in the 7th cycle now, and with Japan and oil prices, food inflations.... well the wheels are about to fall off. No longer a question of if, but when.

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Exactly I been saying it but alot laugh it off.
You need to be prepared. for those in urban areas it is going to be alot worse. The paper $$$ ain't worth shit and NO one is gonna want it.
Stock up on supplies, my Dad is 83 and he tells me all the things we need to do cause the Shit is gonna hit the fan sooner than most think.

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Originally Posted by Mtn.man

Exactly I been saying it but alot laugh it off.
You need to be prepared. for those in urban areas it is going to be alot worse. The paper $$$ ain't worth shit and NO one is gonna want it.
Stock up on supplies, my Dad is 83 and he tells me all the things we need to do cause the Shit is gonna hit the fan sooner than most think.

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Its because most are sheeple, and they sure as heck will be sheared.