Coming Financial Crisis Worse Than ’29?

DixieDestroyer

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Hyperinflation & depression are quickly approaching. IMHO, dump the investments pegged to fiat currency and invest in precious metal (physical possession) coins. When the dollar bottom out & the Amero's implemented, (mandatory) biochips will soon follow. We'll need something (of intrisic value) to barter/buy wth on the black market.
 

Jimmy Chitwood

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Colonel_Reb said:
Kaptain, I had no idea about California going bankrupt. I'm glad I don't live there. Things are surely getting worse by the day. I have a sinking feeling about it all inside me.

Tom Iron and Colonel,

since it appears there is a lot of interest in this topic, i'll re-post an article i put up a couple of days ago that describes just how bad it is in California these days.

California has simply decided to stop paying its bills and start handing out IOU's instead.

California prepares to stop paying bills
Come Feb. 1, tax refunds, welfare checks replaced with IOUs
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Posted: January 26, 2009
9:47 pm Eastern
By Drew Zahn
© 2009 WorldNetDaily

The state of California has run out of money.

Facing a $42 billion budget deficit, State Controller John Chiang told the Sacramento Bee he has already borrowed $21.5 billion to try to cover the state's checks, but by Feb. 1, there will be no more options left but to simply stop paying some of the bills - including tax refunds, welfare checks, student grants and other payments owned to California citizens.

"It pains me to pull this trigger," Chiang said at a news conference held in his office. "But it is an action that is critically necessary."

Federal law requires that many school and healthcare programs - a total of about $6.6 billion in California - must be paid, the Los Angeles Times reports, so Chiang has announced an expected payment freeze on $3.7 billion worth of the state's bills, most of it refunds owed to taxpayers.

But even with the freeze beginning next week, the Times reports, California will still fall $346 million short for the month of February, forcing Chiang to consider something only done once since the Great Depression: issuing IOUs.

Formally called "registered warrants," the state's IOUs consist of little more than a piece of paper that says the state owes a payee money, plus interest, to be paid at some point in the future.

The last time California issued registered warrants was in 1992, during two-month budget battle between then-Gov. Pete Wilson and the state's legislators. But after the state issued almost $4 billion worth of IOUs, many banks stopped accepting them as deposits, claiming the five percent interest didn't pay for the hassle of processing them ...
 

Kaptain

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California will be the Bear Sterns of the States. It's not just California. Nearly every state is in trouble.

Does anyone live in a state that is not talking about freezing teachers, cops, and government employees wages? Or flat-out eliminating many government jobs?

The media will be pretty busy trying to convince the American worker to take massive pay cuts while we bail-out international banks and pay their executives millions of dollars. They'll try to get the common working folk to fight over the crumbs while the welfare and corporate welfare state is well protected. I'm getting to the point where I want to get fired and collect unemployment while I work for cash and fend for myself.
 

Don Wassall

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Nevada's state government is in deep trouble. A lot of Nevada's population growth has come from Whites fleeing from California. But most have brought over the same liberal, anti-white attitudes that led to Southern California's demise in the first place. They've learned absolutely nothing. White cognitive dissonance (maybe it's a collective racial death wish) is the number one reason why "Californication" is taking place all over the country.
 

Kaptain

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The main reason this crash will be worse than any other is because we are no longer a white nation. People make a country.

Also, in the old days the population was mostly living on farms or rural communities. They were more rugged self-sufficient people. They also weren't strapped with debt.

In Minnesota the Governor is talking about freezing teacher's wages and making union strikes illegal. State wide across the board wage freezes and cuts are coming. Major businesses like IBM have announced massive lay-offs.

In the meantime our local Government in Rochester held a secret meeting (which is illegal under MN law) with the Department of Justice to address bias crimes - we had a whole 8 apparently. Anyways, amidst this economic crisis the secret meeting folks decided that the governmental jobs and major employers of the area need to go through expensive racial efficacy training brought to you by the NAACP and the ADL. Of course minorities are committing crimes on whites in the area at never before seen pace and that gets completely ignored. All eight of the so-called "bias crimes" were white offenders and minority victims. Go figure.

Our school District is now freezing teacher's wages and has spent 6 figures on racial efficacy training the past two years and plan to spend that every year. We aslo pay for black staff's college - no kidding. Is it any wonder we are headed for a depression?Edited by: Kaptain Poop
 

Jimmy Chitwood

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Kaptain Poop, i also am tremendously troubled by what we're seeing from our government in action. and i suspect that the problems we've seen thus far are nothing compared to what is coming.

primarily because of these points you described:
The main reason this crash will be worse than any other is because we are no longer a white nation. People make a country.

Also, in the old days the population was mostly living on farms or rural communities. They were more rugged self-sufficient people. They also weren't strapped with debt.
 

Jimmy Chitwood

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more news around the globe:

U.S. economy may keep sliding.
The U.S. economy is likely to keep deteriorating in early 2009 after shrinking last quarter by the most since 1982, as consumers and businesses retrench.

American taxpayers foot the $1 Billion bill for General Motors to invest in Brazil.
General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government ...

Dow and S&P suffer worst January in history.
The Dow and the S&P both had their worst January in history.

This month has been the worst January for the Dow since 1896, and for the S&P since 1928.

As both Bloomberg and Market Watch point out, the performance of the stock indices in January tends to forecast stock performance during the rest of the year.

Japanese economy hit by 'perfect storm' the link has video.

The outlook for the Japanese economy is bleaker than ever after employment, production and retail figures, all posted severe falls.

Japan's unemployment soared at the fastest rate in 44 years to 4.4 per cent in December, while industrial output fell a record 9.6 per cent in the same month and retail sales shrank 2.7 per cent, the fourth straight month of decline.

The American economy is not coming back: the Ugly Truth (commentary)
President Barack Obama and his economic team are being careful to couch all their talk about economic stimulus programs and bank bailout programs in warnings that the economic downturn is serious and that it will take considerable time to bounce back.

California pension funds close to bankruptcy.
The two largest pension funds in California, the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS), have lost billions of dollars in value. Hundreds of thousands of retiring state employees and teachers now face the stark choice of accepting much reduced pension checks or working past their retirement age.

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and now, to show just how stupid people are, no one seems to have noticed:

Treasury Secretary Geithner enlists Goldman Sachs lobbyist as top aide.

Newly installed Treasury Secretary Timothy Geithner issued new rules Tuesday restricting contacts with lobbyists - and then hired one to be his top aide.

Mark Patterson, a former advocate for Goldman Sachs, will serve as chief of staff to Geithner as the Treasury Department revamps the Wall Street bailout program that sent an infusion of cash to his former employer.

Patterson's appointment marks the second time in President Barack Obama's first week in office that the administration has had to explain how it's complying with its own ethics rules as it hires a bevy of Washington insiders for administration jobs.

Last week, the White House announced the president had waived the ethics rules to clear the way for the nomination of William Lynn, a former Raytheon lobbyist, to be deputy defense secretary.

"This is exactly the kind of thing that makes the American public suspicious of politicians. You say one thing and do another," said Melanie Sloan, founder of Citizens for Responsibility and Ethics in Washington.

and in other news, William Dudley, a former Goldman Sachs Chief Economist will replace Geithner at the New York Fed.
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Dudley, 56, has played a central role in the Fed's response to the financial crisis, helping to design, develop and implement the central bank's emergency lending programs.

yes, you read that right. the guy who can't even get his own income taxes right is now the Secretary of the Treasury has now hired a crook who just ran his company into bankruptcy and got rich off a government (taxayer-funded) bailout. and the crooked Fed in New York just promoted a guy who helped create the current depression.

great job, guys! keep up the good work.
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oh, and before i go. here's what happens when a big bank wants what belongs to you: World Bank demolished Albanian village.
A World Bank project meant to safeguard Albania's coastal zones was used to selectively demolish parts of a village in southern Albania and leave many families homeless, according to an internal report , which additionally notes allegations of corruption and efforts by World Bank officials to cover up the events ...

the investigators noted allegations of corruption and complaints that the demolition of the Jale settlements was part of a bigger scheme to develop the area as a tourist resort ... it concludes that the selective demolition carried out by construction police supports the intention to clear the area.

The investigative panel also accused World Bank management of misrepresenting facts during the probe and hampering the investigation by withholding access to data, while it notes the unusual lack of recollection of facts and crucial events by staff. Investigators say that several WB staff members both in headquarters and on the field were "coached" to provide unusually consistent but factually incorrect or misleading information.
 

Jimmy Chitwood

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Don,

i'd never heard of David Dees before you posted that pic. i went to his website, and his work is amazing! and saying it is "hard-hitting" doesn't do it justice. he attacks lies and cover-ups like Chuck Cecil attacked wide receivers coming across the middle.
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now, more bad news.

Bailed out Bank of America Sponsors Super Bowl Fun Fest (with video)
Morgan Stanley hosts Conference at 5-Star Resort in Palm Beach
Despite a near collapse that required $45 billion in federal taxpayer bailout funds, Bank of America sponsored a five day carnival-like affair just outside the Super Bowl stadium this past week as President Obama decried wasteful spending on Wall St.

...

Earlier last week, Morgan Stanley, the bank that laid off 5,000 employees last year and took $10 billion in taxpayer bailout money, held a three-day conference for clients at the Breakers, a five-star oceanfront resort in Palm Beach, FL.

Violent unrest hits Chinese as crisis hits
Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints an ominous picture for the world economy.

In the U.S., personal bankruptcies soar 33%
Personal bankruptcies surged to more than 1 million filings in the United States in 2008 -- the most since a rewrite of bankruptcy laws went into effect in 2005.

Secret Spending: Fed lends $2 Trillion without any oversight (with video)
So, you know about the Treasury's $700 billion bailout plan. But you probably don't know that the Federal Reserve has lent out about $2 trillion since September. Few do. And that is what's irritating bulldog Congressman Alan Grayson. Will he be able to shed a light on the Fed's secret spending?

U.S. dollar devaluation is on its way (commentary)
Greed, Canadian Politics, U.S. Politics, economy

California goes broke; halts $3.5 Billion in payments
California, the eighth largest economy in the world, is broke.
 

Kaptain

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Jimmy, I saw the Bank of America video. My morning coffee kicked in and I'm raging. I just read in the local paper here how Wells Fargo, who have received 25 billion tax-payer dollars, are having their annual big-wig party in Las Vegas for 12 days. They're staying at the high-priced Wynn resort. Previous trips have included professional entertainment like Jimmy Buffet, helicopter rides, and all things expensive in Vegas, etc.
 

Kaptain

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And just this morning I read that as a result of the exposure Wells Fargo is cancelling their party plans. Doesn't matter much to me. All these banks have shown that they intend to steal our money and party.
 

Don Wassall

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Jimmy Chitwood said:
Don,

i'd never heard of David Dees before you posted that pic. i went to his website, and his work is amazing! and saying it is "hard-hitting" doesn't do it justice. he attacks lies and cover-ups like Chuck Cecil attacked wide receivers coming across the middle.
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Dees' work is brilliant.
 

white is right

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This sounds like something FDR did or Obama is dreaming about.......Mystery man gives away cash in New York

1 day ago

NEW YORK (AFP) â€â€￾ He won't say his name, hides his face, and hands cash to anyone who asks in the middle of New York.

The mystery benefactor known only as Bailout Bill sat Wednesday behind a counter in the heart of Times Square giving money to hundreds of people waiting in temperatures well below freezing.

The well-built man protected by plainclothes guards wore wraparound black glasses and a wool hat pulled low over his head.

Some people waited for more than five hours to reach a makeshift window marked "Bailout Booth" where they received at least 50 dollars, sometimes much more.

Many of those queuing were victims of the severe US economic downturn. Tens of thousands have lost their jobs in New York alone.

"I'm very appreciative. I might give some to my mother," said Leon McNeil, 25, after being handed 50 dollars. He was laid off by troubled department store Macy's last December.

News of the giveaway spread fast by phone. McNeil said that at first he couldn't believe the story.

Then he thought, "it's New York and it's Times Square."

Bailout Bill's idea is partly a publicity stunt for a new website, www.bailoutbooth.com, where you can post videos advertising possessions, services, and personal messages.

But the idea is also to help ordinary people in the same way that the US government is bailing out banks and other corporations, a spokesman, Drew Tybus said.

About 500,000 dollars will be dished out in several US cities, he said.

"Rather than getting a TV commercial during the Superbowl, the idea was to give people a chance to make some money. We all know someone who's been affected."

All people had to do was tell their problems to an assistant standing in the street with a microphone and camera.

"My mother is dying in bed," said Mario, a frail man who wore cowboy boots and carried a walking stick.

"Let's see what Bailout Bill says," the assistant replied, hugging Mario.

Bailout Bill announced: "I'm going to give 150 dollars."

A man named Curtis told Bailout Bill he was an Iraq war veteran who owed 500 dollars in rent and was unable to pay for stress medication. Both his parents were recently hospitalized, he said.

He walked off with two 50 dollar bills.

Homeless man Juan Vasquez, 45, said he was grateful for his 100 dollars.

"That should last me three days for washing my clothes, food, cigarettes. To a person who's got nothing, that's a lot," he said.

Tuesday was the "Bailout Booth's" second and last day in New York. Next it goes to Washington, Boston and Philadelphia, Tybus said.

Just who is this mystery man with the deep pockets? "Bailout Bill can't tell you his real name," Tybus said.

"We assume there's too much of a risk. Everyone knows he's got money, so, well, something could happen."

But for anyone thinking of taking the money-for-nothing concept a bit further and robbing that cash-filled booth, Tybus had a warning.

"Those guys standing around here and also in the booth -- they're off-duty cops. And they're armed."
 
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Nothing seems to be going right in this economy. Since the economy is in the dumper, people are careful with their money. As a result they pay their bills on time. Because of this, A local bank claims that they are losing money from all the late fees they no longer are getting.
I wonder if they need a bailout.
 

DixieDestroyer

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Don Wassall said:
Jimmy Chitwood said:
Don, i'd never heard of David Dees before you posted that pic. i went to his website, and his work is amazing! and saying it is "hard-hitting" doesn't do it justice. he attacks lies and cover-ups like Chuck Cecil attacked wide receivers coming across the middle.
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Dees' work is brilliant. 

Dees does a masterful job of illustrating the Globalist Elite, their agenda & puppets!

David Dees A True Master Artist!
 

Jimmy Chitwood

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and the good news just keeps coming (as my sarcasm meter explodes!) i hope you guys are reading these news items... it boggles the mind that most folks are completely oblivious to what our elected "leaders" and the non-elected Fed are doing with our money.

Taxpayers risk $9.7 Trillion on bailouts as Senate votes.
The stimulus package the U.S. Congress is completing would raise the government's commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation's home mortgages.

Revolt brews in California counties.
Counties in California say they've had enough - and they aren't going to take it anymore.

U.S. Treasury to pump billions into banks.
TIMOTHY GEITHNER, the US Treasury secretary, will tomorrow set out the American government's plan to inject billions of dollars into the country's troubled banks and ringfence their toxic assets.

The announcement is seen in the markets as key to steering the global economy out of its deepest postwar recession, along with President Barack Obama's $820 billion (£555 billion) fiscal-stimulus plan.

WTO chief joins others in warning of Crash-Induced Unrest
The global economic crisis could trigger political unrest equal to that seen during the 1930s, the head of the World Trade Organization (WTO) said in a German newspaper interview Saturday.

"The crisis today is spreading even faster (than the Great Depression) and affects more countries at the same time," Pascal Lamy told the Die Welt newspaper.***

"This crisis weighs heavily on politics and puts peace in danger," he said.

Regulators close failed banks in GA, CA.
Regulators close 2 failed banks in Calif., 1 in Georgia; 9 US bank failures this year

in the latest example of trying to polish a turd, Inhofe condemns Stimulus Bill as 93% spending and only 7% stimulus.


finally someone other than Ron Paul calls a spade a spade. SC Governor: 'We're moving close to a savior-based economy. (link has video)
As many state and local officials clamor for their share of the billions of dollars in federal aid in the stimulus bill under consideration in Washington, South Carolina's Republican governor is sounding a note of dissent about federal efforts to help the economy.
 

Colonel_Reb

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Great links JC. I was especially glad to read the ones about the California revolt and the SC governor.
 

Jimmy Chitwood

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Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run on the Banks" (video on link)
It gets pretty good at about two minutes in. By pretty good, I mean, you might want to be wearing a diaper as you watch this.

I wonder where Henry Paulson has slithered off to now...

F. William Engdahl: Two Years of Recession, or Ten Years of Hell? (link is the first part of a series on YouTube)

A Proposal to Shore Up Banks Using Pension Funds
Financial institutions in the United States probably need hundreds of billions of dollars in additional assistance, and one congressman wants to harness state and local pension funds to help them.

i mean, seriously. WTF?!?!?
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Jimmy Chitwood

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'Toxic' EU bank assets total 16.3 Trillion pounds
It is not surprising that European Union finance ministers looked ashen faced in Brussels on Tuesday.

Critics concered "stimulus" package promotes rationed health care.
Critics of the new economic stimulus bill Congress is considering are concerned that, buried in it, is a new plan for rationed health care. Betsy McCaughey, the former Lt. Governor of New York, has written a widely circulated editorial with the analysis.

Major Powers 'Pressure IMF to Distort Data'
An official in the British government claims that reports made by the International Monetary Fund are being distorted due to pressure tactics by the world's big powers. Adair Turner, chairman of England's Financial Services Authority, told the Financial Times newspaper that one of the problems with the IMF is that the world's big powers have used their diplomatic clout to tone down the fund's reports focusing on their economies.

and in related news, FBI investigating over 500 Cases as Corporate Fraud Runs Amok
WASHINGTON â€â€￾ The FBI is conducting more than 500 investigations of corporate fraud amid the financial meltdown, FBI Deputy Director John Pistole told the Senate Judiciary Committee on Wednesday, and there is an even bigger mountain of mortgage fraud cases in which hundreds of millions of dollars may have been swindled from the system.

Pistole says there are 530 active corporate fraud investigations, and 38 of them involve corporate fraud and financial institution matters directly related to the economic crisis.

Additionally, the FBI has more than 1,800 mortgage fraud investigations, more than double the number of such cases just two years ago.

edited to add: i just stumbled across this article that once again shows a huge part of the tipping point that pushed the economy over the edge: the affirmative action loans and their result.

1990s FHA Mortgage Default Rates by EthnicityEdited by: Jimmy Chitwood
 

Jimmy Chitwood

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Jobs losses to persist as economy spirals out of control
Already the New Year has gotten off to a rough start, and more bad news is expected this week when the government releases data on weekly jobless claims and December unemployment.

Just days into 2009, data storage company EMC Corp., managed care provider Cigna Corp., aluminum producer Alcoa Inc. and computer products designer Logitech International were among those announcing big layoffs as companies scramble to cut costs even deeper ...

A barometer on layoffs due out Thursday is expected to show that the number of newly laid off people signing up for state unemployment insurance last week rose to 540,000, up from 492,000 in the previous week, according to economists' projections.

The number of people continuing to draw jobless benefit is projected to stay near 4.5 million, demonstrating the troubles the unemployed are having in finding new jobs.

Electronic unemployment filing systems have crashed in at least three states in recent days amid a crush of newly jobless Americans seeking benefits.

... "amid the weaker outlook for economic activity over the next year, the unemployment rate was likely to rise significantly into 2010," the Fed warned.

yep, it looks like all that "stimulus" money really worked. nice job, a-holes.
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Kaptain

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I understand that a major part of Obama's plan revealded today is to have the tax-payers pay banks so that irresponsible people who have "troubled" mortgages can stay in their homes. I saw this coming via a radio interview of Peter Schiffs round about last summer. He actually advised not paying your mortgage (particularily if its upsidedown) and living rent-free as long as possible - usually about a year. All the while buying up precious metals with the money saved. The responsible mortgage paying tax-payers will flip the bill and that appears to be exactly what is happening.

I also got a feeling that minorities will qualify much more easily for this special mortgage help and whites will be left holding the bag.
 

white is right

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Kaptain Poop said:
I understand that a major part of Obama's plan revealded today is to have the tax-payers pay banks so that irresponsible people who have "troubled" mortgages can stay in their homes. I saw this coming via a radio interview of Peter Schiffs round about last summer. He actually advised not paying your mortgage (particularily if its upsidedown) and living rent-free as long as possible - usually about a year. All the while buying up precious metals with the money saved. The responsible mortgage paying tax-payers will flip the bill and that appears to be exactly what is happening.

I also got a feeling that minorities will qualify much more easily for this special mortgage help and whites will be left holding the bag.
Yes this really troubles me. How can you reward someone for willfully buying something that they in their hearts know they can't afford. I remember seeing one example of a Mexican-American looking family buying a decent sized house in California who had huge payments due sub prime loans. The family were cleaners? Unless they owned a company there is no way they could afford anything more than a shack in a ghetto. This house was your stereotypical cookie cutter house in the burbs.
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Bart

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Kaptain Poop said:
.

I also got a feeling that minorities will qualify much more easily for this special mortgage help and whites will be left holding the bag.


That goes without saying! And wasn't that one of the major reasons for the financial meltdowns in the first place?
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