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Federal Reserve Admits U.S. Government Is Bankrupt
- Thread starter jjf
- Start date
Quote from Joab:
The problem with America is NOT the system.
The problem with America is the current political regime is not spreading the greed money wide enough.
Since BUSH has come into office the only benefactors of his office are Oil companies.
It's no coincidence that Exxon mobile is what it is today.
Throw the bum out and spread the wealth with other greedy US companies.
It's that simple.
If you realized how stupid your ideas were you wouldn't post them.
John
Hyperinflation is inevitable
As Kotlikoff explains:
"Given the reluctance of our politicians to raise taxes, cut benefits, or even limit the growth in benefits, the most likely scenario is that the government will start printing money to pay its bills. This could arise in the context of the Federal Reserve Уbeing forcedФ to buy Treasury bills and bonds to reduce interest rates. Specifically, once the financial markets begin to understand the depth and extent of the countryТs financial insolvency, they will start worrying about inflation and about being paid back in watered-down dollars. This concern will lead them to start dumping their holdings of U.S. Treasuries. In so doing, theyТll drive up interest rates, which will lead the Fed to print money to buy up those bonds. The consequence will be more money creationЧexactly what the bond traders will have come to fear. This could lead to spiraling expectations of higher inflation, with the process eventuating in hyperinflation."
i don't have any financial degree or even basic knowledge, but, imo-
if hyperinflation will strike US, all those people, who bought/refinance houses today,at very low fixed rate will be in very good position and actually will benefit from it. they have hard asset and they paying @5-7% rate, while current inflation let say 20-100% a year..
if hyperinflation strike,one can pay to the bank for house within a year or couple monthly salaries.
banks, the ones, who will be fu**d.
but on other hand-i don't think, they let this happend..i'm wrong?
Thank you!
Quote from Bob111:
i don't have any financial degree or even basic knowledge, but, imo-
if hyperinflation will strike US, all those people, who bought/refinance houses today,at very low fixed rate will be in very good position and actually will benefit from it. they have hard asset and they paying @5-7% rate, while current inflation let say 20-100% a year..
if hyperinflation strike,one can pay to the bank for house within a year or couple monthly salaries.
banks, the ones, who will be fu**d.
but on other hand-i don't think, they let this happend..i'm wrong?
Thank you!
Well, for one thing, the bank can call your loan. If they still own it, that is. Most probably your mortgage was sold to gov "sponsored" companies like Fannie Mae.
I agree BOB.
Those who did not buy home during the last 4 years of the mad rush, will be ok.
Many are starting to look now, with better home prices and lower interest rates.
Interest rates will be cut close to Greenmans. days.
Hyper inflation will not hit the US like it did in Weimer Germany.
There is still plenty of Cash liquid individuals in the country.
The people who are going to get killed are those who are extended beyond their means, period. No if and or buts about it.
Between now and 2020, the US will have one of the biggest Transfers of Wealth, so to speak.
If your middle class, extended beyond your means......your finished. Only a matter of time.
This summer is going to see the biggest round of layoffs since the 70s.
Those who did not buy home during the last 4 years of the mad rush, will be ok.
Many are starting to look now, with better home prices and lower interest rates.
Interest rates will be cut close to Greenmans. days.
Hyper inflation will not hit the US like it did in Weimer Germany.
There is still plenty of Cash liquid individuals in the country.
The people who are going to get killed are those who are extended beyond their means, period. No if and or buts about it.
Between now and 2020, the US will have one of the biggest Transfers of Wealth, so to speak.
If your middle class, extended beyond your means......your finished. Only a matter of time.
This summer is going to see the biggest round of layoffs since the 70s.
Quote from telozo:
Well, for one thing, the bank can call your loan. If they still own it, that is. Most probably your mortgage was sold to gov "sponsored" companies like Fannie Mae.
i see..i never apply to any loan or mortgage, so I'm not familiar with their terms\procedures.
all of them can be called by the bank? i'm talking about 15-30 years fixed mortgage.
Thank you!
no they cant be called. in a hyperinflation it is true that if you have real estate you will see an increase in value but interest rates will rise to a point where they compensate for the risk.Quote from Bob111:
i see..i never apply to any loan or mortgage, so I'm not familiar with their terms\procedures.
all of them can be called by the bank? i'm talking about 15-30 years fixed mortgage.
Thank you!
So some knowledgeable person elaborate on how one hedges their wealth for this doomsday scenario other than having no debt !
How do you keep your cash nestegg from loosing its value>>>do you get short the US dollar when you belive this is all about to go down? Do you buy and physically hold other currency like EUROS or the chineese currency?? In the financial meltdown will contracts in the market actually be honored if one was on the right side of the trade?? (short the dollar)??
How do you keep your cash nestegg from loosing its value>>>do you get short the US dollar when you belive this is all about to go down? Do you buy and physically hold other currency like EUROS or the chineese currency?? In the financial meltdown will contracts in the market actually be honored if one was on the right side of the trade?? (short the dollar)??
Quote from vhehn:
no they cant be called. in a hyperinflation it is true that if you have real estate you will see an increase in value but interest rates will rise to a point where they compensate for the risk.
Yes, a mortgage, like any other loan, can be called, but it is very unlikely:
http://www.mortgageporter.com/reportingfromseattle/2007/08/question-of-the.html