Friday, August 24, 2007

The days of Noach are just about over.

The lead article on www.lifeaftertheoilcrash.net is this:

Financial bankruptcy, the US dollar and the real economy
By Rodrigue Tremblay Online Journal Guest Writer Aug 24, 2007, 00:56

The editor of Lifeafter... had this to say:

Things are getting worse, because central banks are lending new cash for months on end against illiquid and partly unsolvable, artificial derivative debts. Who knows where this could lead? . . . if central banks continue to shore up the artificial financial houses of cards to prevent them from going
bankrupt, they may end up monetizing mountains of worthless debts with the potential of creating monstrous inflation. A dollar panic may be just around the corner.


The article itself is long and scary, but this paragraph pretty well sums it up:

This should have been a warning sign to regulators of financial markets. But hedge funds and other financial operators' greed -- and political corruption -- were too strong, and no one stopped the march to disaster. Now, things are getting worse, because central banks, led by the Fed, are following the assignats route and have been aggressively "monetizing" the unfunded derivative debts, lending new cash not for a day or two, and not against T-bills, but for months on end against illiquid and partly unsolvable and artificial derivative debts. Who knows where this could lead? One possibility is the complete collapse of the U.S. dollar and an uncontrollable burst of inflation in the years ahead if the salvage operation were to increase money supply on a permanent basis. Indeed, if central banks continue to shore up the artificial financial houses of cards to prevent them from going bankrupt, they may end up monetizing mountains of worthless debts with the potential of creating monstrous inflation. A dollar panic may be just around the corner. Thus, the cure for fighting a credit crisis could be a tremendous push of inflation in a few years, if the Fed cannot withdraw the new cash fast enough from the system...

The cheredi communities in particular and Judaism in general is totally, completely, 100% unprepared to deal with these facts. Most cheredi families are heavily in debt, and a monetary crisis of any kind would be a disaster. Since Kosher products are in even shorter supply than regular supermarket products, any disruption in production or delivery of food due to monetary difficulties will throw tens of thousands of cheredi families into a life-or-death decision mode: to eat non-kosher or not to eat at all. This is the reality that is going to play out either way - an inflationary spiral would put the already burdensome prices of kosher food off the chart, conversely, a dollar panic resulting in "bank runs" and other un-fun but ALREADY OCCURRING phenomenon may make cash so scarce that no one can get any.

THE MORTGAGE MELTDOWN - A rush to pull out cash
By E. Scott Reckard and Annette Haddad
August 17, 2007

Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches. In Laguna Niguel, Bill Ashmore drove his Porsche Cayenne to the bank's office and waited half an hour to cash out $500,000. "It's got my wife totally freaked out," he said. Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank...

This is not from 1929, this is from last week. And it's only going to get worse, class, as peak oil collides in an ugly wreck with the total cessation of availability of credit to individuals needing to buy homes, cars, and household goods.

It's a shame that we didn't become self-sufficient when we had the chance. It's a shame none of our young men learned any trades or skills or crafts that would provide us with the items we need to weather this storm. They were too busy sitting on their sublime posteriors "learning" nothing that would provide them any means of producing an income for their families in any economy, much less a sinking one.

We are in big trouble, class. And, like in the days of Noach, most of the people in our communities will refuse to see it until it is too late to do anything about it. We have had a several-years long opportunity to make our communities self-sufficient, and instead we are more dependent than we ever were on loans, credit, scams, welfare, insurance fraud, and outside providers of just about everything we need.

What blind fools our leaders have been. What blind idiots we have been to follow them.

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