Forget the collapse of the dollar...The food and cannabis supply will be affected by the on going drought in California and it doesn't appear to let up any time soon.
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When the U.S. Dollar collapses how will MJ and food be affected?
- Thread starter Dreambig
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St. Phatty
Active member
Most of the US - the economy & the society - is in a state of mid-collapse.
The social contract between so many professions - doctors, police, bankers, and oh yes, politicians - and the general public, is shattered.
More specifically, the trust on which it is based is shattered.
Also more specifically, these professions are doing the opposites of what they are typically expected of doing. Police hurting people, doctors creating iatrogenic conditions right and left (AKA hurting people), banks robbing people instead of safeguarding their money, politicians working for the 1%, not the 99%.
There are areas of the country that have some economic vigor and other than desperation going on.
But most of the country is in a state of desperate and getting more desperate.
I collect data about incidents of predatory business practices, e.g. when a gym member can't pay health club dues and the gym becomes senior to their mortgage and car payments - causing the member to lose their mortgage and their car, and living with the father, who is slowly sharing the details of what happened with me.
I talked to a senior teller at the bank about that and she said that a LOT of people had been complaining about health clubs removing money from their bank accounts without their permission. Club One (in Silicon Valley and San Diego) did this to my own account.
As far as food, I think the Mormons and the Amish have the right idea. And the Hutterites.
As far as marijuana, almost everybody here grows. Or knows somebody who does. Thank God !
The social contract between so many professions - doctors, police, bankers, and oh yes, politicians - and the general public, is shattered.
More specifically, the trust on which it is based is shattered.
Also more specifically, these professions are doing the opposites of what they are typically expected of doing. Police hurting people, doctors creating iatrogenic conditions right and left (AKA hurting people), banks robbing people instead of safeguarding their money, politicians working for the 1%, not the 99%.
There are areas of the country that have some economic vigor and other than desperation going on.
But most of the country is in a state of desperate and getting more desperate.
I collect data about incidents of predatory business practices, e.g. when a gym member can't pay health club dues and the gym becomes senior to their mortgage and car payments - causing the member to lose their mortgage and their car, and living with the father, who is slowly sharing the details of what happened with me.
I talked to a senior teller at the bank about that and she said that a LOT of people had been complaining about health clubs removing money from their bank accounts without their permission. Club One (in Silicon Valley and San Diego) did this to my own account.
As far as food, I think the Mormons and the Amish have the right idea. And the Hutterites.
As far as marijuana, almost everybody here grows. Or knows somebody who does. Thank God !
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ALBINO COBRA on the loose in So Cal!
The illuminati are attacking us with snakes now!
Make sure your bunkers are stocked!
.
The illuminati are attacking us with snakes now!
Make sure your bunkers are stocked!
.
The debt of the government including unfunded liabilities is way over 14 trillion its more to the tune of 17 and growing. The other two are funded by cheap credit especially the stock market and as we seen in 08, the real estate market. There are no fundamentals to support the real estate market growing or the stock market. The government is robbing people with taxation, and the FED with inflation via money printing (cheap credit)(low interest).
Which does not leave much room for savings and investment if the price of everything is skyrocketing.
If you are trying to save money to afford and invest in increasingly higher priced goods do to money printing,it is your fault the economy isn't growing. Not the FEDs./sarc
Fed: US consumers have decided to 'hoard money'
Bentom, yes the published debt is almost $17.9 trillion--but you can not count the $4-5 trillion the US Government owns, that is simply a debtor owning it's own debt--nothing more. If that counts, then I think I will loan myself a million dollars today, interest free of course...poof, I am now a millionaire, right?
So common sense says, back out the money US Government owes itself, and you will see that my original $14 trillion number is much more reflective of what USA owes everyone (except itself).
BTW, if you want to discuss "unfunded liabilities"--then be sure to include in your discussion "unfunded assets", that way you have a complete picture.
Ahhh....smoke another fatty and things will be clearer.
So common sense says, back out the money US Government owes itself, and you will see that my original $14 trillion number is much more reflective of what USA owes everyone (except itself).
BTW, if you want to discuss "unfunded liabilities"--then be sure to include in your discussion "unfunded assets", that way you have a complete picture.
Ahhh....smoke another fatty and things will be clearer.
St. Phatty
Active member
unfunded liabilities are north of $100 Trillion.
I put it to a bank manager.
"Would you loan money to a customer who was borrowing money to pay the interest on their debt ?"
"Of course not", was the answer.
Then I asked them, "Why do you loan money to the US government ?"
Stunned silence. That particular manager was not a deep thinker but she slightly got the point.
The next question would be, "Would you loan money to a customer who was counterfeiting/printing money to pay the interest on their debt ?"
If the "unfunded liabilities" are north of $100 trillion....then what is the value of all "unfunded assets"?
I know this may sounds like an accounting class discussion, but Assets = Liabilities + Equity/Ownership. So if the US Government owes $100 trillion that is "off the books", then that liability has an offset (asset and/or equity) of an equal amount that is also "off the books". Government accounting uses "double entry" method of accounting, not what sole proprietors use: a "single entry" method, so there must be an offset--as in "debits" equal "credits".
Hint: Anyone know the value of all the land the US Government owns? We are not just talking about what GSA controls (commercial buildings), but lots of land...pure land--not $1 of it's true value is "on the books". Start here and go from there....lots of "unfunded assets" out there. Now as to the "unfunded liabilities" of municipalities, counties and some states--they have very little "unfunded assets"; they are in deep shit as their offset is "equity" which equates to "bankruptcy" (ala Vallejo, Detroit, etc). But we are not talking about their silly/past fiscal mistakes.
BTW to answer your question as to why loan US Government money? Cuz others perceive it is a "safe haven"; never a default in its history. Look at all the foreign countries and money managers (Wall Street) that own government securities and ask yourself, "what do they know I don't?". Acceptable Risk vs Reward, and immediate liquidity will be their response.
I know this may sounds like an accounting class discussion, but Assets = Liabilities + Equity/Ownership. So if the US Government owes $100 trillion that is "off the books", then that liability has an offset (asset and/or equity) of an equal amount that is also "off the books". Government accounting uses "double entry" method of accounting, not what sole proprietors use: a "single entry" method, so there must be an offset--as in "debits" equal "credits".
Hint: Anyone know the value of all the land the US Government owns? We are not just talking about what GSA controls (commercial buildings), but lots of land...pure land--not $1 of it's true value is "on the books". Start here and go from there....lots of "unfunded assets" out there. Now as to the "unfunded liabilities" of municipalities, counties and some states--they have very little "unfunded assets"; they are in deep shit as their offset is "equity" which equates to "bankruptcy" (ala Vallejo, Detroit, etc). But we are not talking about their silly/past fiscal mistakes.
BTW to answer your question as to why loan US Government money? Cuz others perceive it is a "safe haven"; never a default in its history. Look at all the foreign countries and money managers (Wall Street) that own government securities and ask yourself, "what do they know I don't?". Acceptable Risk vs Reward, and immediate liquidity will be their response.
You pointed out the problem. Since all dollars that are in circulation have a debt to back it, I think you can count all of it as debt we owe somebody.
We are loaning ourselves money we cant even pay the interest on making us insolvent debtors. Every year congress meets to discuss the credit problem which is about the interest on the national debt. So they cant raise the interest rate from zero.
So how do you pay a debt with a debt ? You do need actual money or a asset to pay them back otherwise your only option is to incur a new debt.
So that makes every new FRN printed a default, and an additional loss of purchasing power in the previous FRNs printed.
The Crash Course - Chapter 8 - Money Creation - The Fed
[YOUTUBEIF]J7sBehblZk8[/YOUTUBEIF]
Alan Greenspan: WE CAN ALWAYS PRINT MORE MONEY
[YOUTUBEIF]q6vi528gseA[/YOUTUBEIF]
Ben Bernanke Gets Schooled About Andrew Jackson, Currencies and Federal Debt
[YOUTUBEIF]axu4nLE0zFU[/YOUTUBEIF]
Ben my friend, count the number of "ifs" that must occur before your scenario becomes a "reality". Each "if" is a data point that probably contains hundreds more "ifs" that must align perfectly. In otherwords, "if ___________ happens, and if _________ happens, then __________ will probably happen, which means _____________ is inevitable."
IMHO, way too many "ifs" in your game plan, besides aren't you discounting the ingenuity of others to avoid your potential "ifs". Simple example, if China becomes both our economic and military enemy, do you think USA will pay them on the debt they hold?
BTW, given the option of reading the "facts" or listening to others "pontificate", I usually choose to read the unabridged version. So instead of linking to what others say, say what you mean.
IMHO, way too many "ifs" in your game plan, besides aren't you discounting the ingenuity of others to avoid your potential "ifs". Simple example, if China becomes both our economic and military enemy, do you think USA will pay them on the debt they hold?
BTW, given the option of reading the "facts" or listening to others "pontificate", I usually choose to read the unabridged version. So instead of linking to what others say, say what you mean.
They wont get paid ,but if your a mobster and people don't pay their debt, they get made examples of. I don't think they are opposed to ending the petro dollar instead of direct warfare.
Given the amounts of money printing of the FED and it being its only option , no I don't have much faith in them doing anything else. It failed in the past, there was no recovery, they decide to follow the same policy of low interest rates and cheap credit, its just going to happen again except bigger.
