[NevadaGhosts]

I have been keeping close watch of the financial section of the mainstream news for a while. The numbers are alarming. The company layoffs, the collapse of the airline industry, etc. Then I came across an article in the New York Time today talking about the 2005 Davos debate that was recently held in Davos, Switzerland. Economists, politicians, and business executives atend this meetinf every year to debate financial stuff. Cheny and Powell attended last years' Davos meeting. Not this year. Rep. Barney Frank was there to speak for the US. The center of the meeting focused on the falling US dollar.

A statement made at the meeting by Stephen S. Roach, who is chief economist of Morgan Stanley:

"There's nobody home on economic policy in America right now. The twin burdens of household and public debt in the US are unsustainable."

He also described American consumers as an 'accident waitng to happen'.

Laura Tyson stated "The Bush administration doesn't listen to anyone. There's no hope for changing US fiscal policy." She was an economic advisor for president Clinton.

Rep. Barney Frank (ranking Democrat on the House Financial Services Commitee) said that 'he worried that the US wasn't paying enough attention to the risks of it's growing indebtedness. He also stated that ' the reprocussions of a weak dollar had barely registered with the White House.'

I don't know about the rest of you, be I feel we are really close to total US economic meltdown. Seriously. I would say that now is the time to stock up on anything you need to purchase in preparation of peak oil, while you can still afford it or even get it.

[jato]

$this->bbcode_second_pass_quote('', 'I') don't know about the rest of you, be I feel we are really close to total US economic meltdown. Seriously. I would say that now is the time to stock up on anything you need to purchase in preparation of peak oil, while you can still afford it or even get it.

[maverickdoc]

NevadaGhosts is right on the money no pun intended

" Asian central banks like China's have become America's bankers, financing its excesses through good times and bad. It's now up to Asia to decide whether to extend the U.S.'s line of credit. The U.S. should be warned that the odds are moving less and less in its favor."


"http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=aEBBmwvtNuxA

2006 is way too optimistic

[NevadaGhosts]

Thanks Jato. Good to be back after a restful break from the whole peak oil thing.

It still totally amazes me that the warning signs are everywhere now of a soon-to-come total economic meltdown here in the US, but most people live life as normal, totally and completely clueless to what is about to happen. The mainstream news stories are even starting to talk about the falling dollar and economic collapse. I am glad we still havea little bit of time to prepare, but how long...

[NevadaGhosts]

After reading Matt Savinar's 'The Oil Age is Over' book and Richard Heinberg's 'Powerdown' book, I am totally convinced that things are beginning to fall into place just as these 2 authors predicted in their books. We don't have much time. Perhaps a year... 2 at best before an economic collapse. I feel sorry for all those people that hae their life savings and retirement invested in the stock market.

[Guest]

Well that may be...but I'll tell U this now....China, EU, India, will not even contemplate pulling the rug out from under America's feet. They need shopping mall America for their Guandzhongs, Bangalores and EU trade zones. If the States go, they go...the whole house of cards.

I suspect that the salaried members of society will be squeezed to reduce the national debt - this will coincide with a gradual fall in profits as they are whittled away by rising fuel and raw material prices - the downward spiral will be gradual, cushioned by falling wages.

Indebtedness will rise in personal borrowings as ordinary folks use debt to fund expenditure. Likewise with small businesses. However, the corporates will juggle the figures to keep equity funding rolling in - figures will be used to mask the precarious of affairs unfolding.

Eventually, a combination of peaking oil pressures and spiralling debt will lead to personal bankruptcies and insolvencies though - and with that an unravelling of the global economy. Then the fun starts.