Reply To: Do you really want to know the truth about the economy?

Best Gore Forums Societally Relevant Politics Do you really want to know the truth about the economy? Reply To: Do you really want to know the truth about the economy?

#293560
GDPR Harvester
Keymaster

The economy is starting to crumble. The only thing to look at now is what the Fed will do in response to it all, like how much cash they’re going to pump into it and, more to the point, where will the cash go? The US shale oil industry is about to go bankrupt because yesterday I was looking to see what the break-even price for them was and it’s around $60 per barrel. Well right now it’s at $33.50. This unsustainable for the companies who are swimming in debt and lots of foreclosures on loans look very likely. However, a genuine question is this: Will the government bail them out or guarantee their debts? It wouldn’t surprise me if they did. That’s the taxpayers on the hook for it all…..once again!

One way or another, helicopter money is unavoidable as it’s the only ammunition the Fed has left in its gun. They will ramp up QE like it’s never been done before but this time there’s a difference. Before, the world was prepared to invest in US treasuries but the interest rates are right down and another 75 basis-points cut is already priced in. Rates will be almost zero nominally; take inflation into account and it’s negative rates. This time there will be no queue to buy treasuries which means the Fed will have to buy them. This will eventually tank the dollar, gold and silver will go “to da moon” and the global, fiat-money system will collapse. Bye bye pensions, bye bye 401k’s, bye bye anything valued in fiat money. Only those with REAL assets will come out of this smiling.

How do you stand?