ALAN GREENSPAN: "THE FINANCIAL SYSTEM IS BROKE!" 8-2-2010

"STOP SPENDING" T-SHIRTS @ http://executees.net/mens.html

Greenspan, who now apparently is off the reservation concludes with this stunner: "There is no doubt that the federal funds rate can be fixed at what the Fed wants it to be but which the government has no control over is long-term interest rates and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing. At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working." In other words, we will be in deflation until the broke financial system becomes unbroke... and then we will have hyperinflation. Well, ladies and gentlemen, Q.E.D.

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[veniceit1]

THE FINANCIAL SYSTEM IS NOT WORKING? O. K. SO HOW MUCH LONGER DO WE HAVE BEFORE THERE IS A TOTAL FINANCIAL COLLAPSE/DEPRESSION. OBAMADANISM HAS SET AMERICA ON A COURSE THAT IS TAKING THE SHIP OF STATE/ECONOMY OVER THE WATERFALL. WHY ARE AMERICAN POLITICIANS DELIBERATELY SCUTTELING AMERICA AND DESTROYING AMERICAN FAMILIES AND WORKING PEOPLE. IS IT ALL JUST A SPECIAL INTEREST {MONEY} THING FUELED BY OFFICE HOLDERS/POLITICIANS LUST/GREED. THEY GET PAID WELL BY THE TAX PAYERS BUT THE SYSTEM IS BROKE

[traynickel]

@veniceit1 Throughout history all paper currencies have failed. It's just end game for the dollar and any currency attached to it. Peak Credit, Peak Oil, and Peak OTC Ponzi Derivative Printing Press Debt Obligations........

[ColKorn1965]

The system is broke and guess who helped to break it? The Evil Greenspan himself.

[graham640]

this man and his evil co hearts removed regulation from the banking system so capitilistic bastards can make money now the whole world is paying for this mans greed screw him screw capitilism

[spiglator]

This stupid SOB belongs in prison. The Fed should have lowered rates a half a point right after Hurricane Katrina when oil went through the roof. This asshole just kept raising the rates. He should just shut up already.

[tothemax01]

@drkevincampbell Cheers mate, nice one. Ill have at look into this stuff. What is your opinion on holding commodities instead of cash? Whilst houses may be going down in value, the dollar is simultaneously being expanded by the fed, which it appears is pushing up commodity prices. Also, how about holding yuan?

[drkevincampbell]

@tothemax01 Stash cash and short the market using inverse ETF's. I expect the stock market to crash at least 60%, perhaps by 80% within the next 6 months. Holding inverse ETF's like FAZ, SKF, DRV, ERY, DXD and others will pay you double and triple returns on a market collapse. and trust me, it's going to crash. Most important is to keep cash under your mattress. When this deflation cycle drives home prices down another 50%, you will be able to buy property on the cheap.

[tothemax01]

@drkevincampbell How do I profit from it?

[EMPIRE0FLIES]

This is going to be very bad.

[solvssod]

tresurery dept somewhat ? they dont have  power over shit ! its the feds stop paying all taxes

[yang2enator]

@drkevincampbell I absolutely agree with you. I have the exact same worries for a Japan style lost decade. When I look at the data, I think our overleveraging will have to self correct in 2-3 years. Just my guess. Our government has guaranteed too many loans, deposits and bonds. Japan had an enormous savings rate, so the gov can borrow that for bailouts. We have negative savings rate now, so our government can only print to pay off its guarantees. I think its likely they will print.

[drkevincampbell]

@yang2enator I think your time table is correct. I see hyperinflation cycle beginning in 2013 after the deflation cycle drives the markets and real estate into the ground.  The worry is, we could prolong the deflation cycle and create a lost decade as Japan did. So far, according to ecoonomist Richard Koo, we are following the exact path as Japan.