$3 trillion corporate credit crunch looms

[DrHenley]

$3 trillion corporate credit crunch looms as debtors face day of reckoning, says IMF
http://www.telegraph.co.uk/finance/...h-looms-as-debtors-face-day-of-reckoning.html

Emerging market companies have "over-borrowed" by $3 trillion in the last decade, reflecting a quadrupling of private sector debt between 2004 and 2014, found the IMF's Global Financial Stability Report.

This dangerous over-leveraging now threatens to unleash a wave of defaults that will imperil an already weak global economy, said stark findings from the IMF's twice yearly report.

The Fund warned there was no margin for error for policymakers navigating these hazardous risks.

 

[Hippophibia]

Stock markets have recovered in the last 2 weeks as very bad US job data indicates that US interest rates are not likely to rise soon, but under the surface lots of issues are coming out of the woodwork, indicating imminent collapse.

Developing country borrowing including China is massive and their currencies have devalued almost doubling the debt in their local currency - Like Greece no way they are going to pay it back. The issues are discussed in a blog that I frequently read, link below.
http://theeconomiccollapseblog.com/...ing-that-an-economic-crisis-could-be-imminent
http://theeconomiccollapseblog.com/...at-the-great-derivatives-crisis-has-now-begun

Moderate CNN even had a red flag article today on the latest stock rise: every day the economic news is getting worse but greed prevails in the markets.
http://money.cnn.com/2015/10/09/investing/insiders-are-not-buying-stocks/index.html

 

[Brent S]

I remember a couple years ago a rumor that the US would confiscate the retirement accounts and use it in the general funds, while assuring the people that it would be there for them when they retire. I don't know if the story even had any real basis behind it or not, but it's a scary thought. Never forget that they did this with the social security fund and see how broke it is today. I don't consider myself to be paranoid, or a conspiracy theorist at all, but the country and the world are in a horrible mess financially. Anyone who lives on a budget and balances their own checkbook can see the U.S. Govt is in a mess they can never recover from. I think the only way to pay down the debt will be to print more money, which dilutes its value, making everything we buy more expensive, aka inflation. I saw an article on Venezuela, saying a burger cost the equivalent of 17 dollars. I'm afraid that we will see this here before long.
My point here isn't to discourage or scare anyone, but is the opposite. I want everyone to start thinking about what they can do to be prepared for it. Learning to grow your own food, and how to get safe water to drink if your tap dosent work one day, these are tangible things that are within reach of all of us. Trust me, learning to grow or raise food isn't as easy as you think. I've been learning for about five years, and am getting better, but still consider myself a novice.
I noticed my water bill went from 19 dollars a month to almost fifty now, over the last four years. I'm not using any more either. I've defiantly noticed that the dollar dosent get much at the grocery store now as well. I don't know if we will see a total collapse of the economy, but we are seeing it diminishing allready. I don't believe having trust in our leaders to,find solutions to,these problems is wise. Put your trust in yourself, and start working on things that will help you take care of the ones you love, providing the basics we all need to live.

 

[Hippophibia]

Yeah current gov management is to keep kicking the can down the road (more debt, printing and zero interest rates) - hoping for a miracle or pass the problem onto the next government and blame it on them.

October is historically the months where the big economic crashes occur - if world governments can keep the economy going for another year it will be most surprised. Personally I think Obama will be the last US president in the current form of government. When all bank accounts are frozen and welfare payments stop the rioting and civil war starts. If this years northern hemisphere winter is anything like last year and the economy tanks at the same time it is going to be rough.

The only thing you need to understand about the economy is that is you spend more than you earn then you go broke - I don't know of any countries that are not running up big debts - beyond their ability to pay and a day of reckoning comes, like Greece and Argentina. Brazil is on the way.

In 2013 media reported there were ±3million peppers in the US latest figures I have seen are around 7 - 12 million; the sure number of pepper sites and videos is amazing and I am told that pepper merchandise is flying off the shelves - suppliers cant keep up. Gun sales in the US are at near record levels. I have seen a massive increase in pepper activity in Australia. Australians are usually "she will be right mate, no worries"

 

[DavyRocket]

US national debt = $18.5 trillion (rounding off)
Unfunded liabilities (rough numbers) some say $100 trillion, some say $200+ trillion (Food stamps, Medicare/Medicaid, Free housing, Free "phone service" AKA Obamaphone.
Total of Derivatives $1+ Quadrillion in debt

There is NOTHING no man or Government can do to pay off that amount of debt in a few years. The only way is to default, or let it crash. These are insane numbers. My dad told me yesterday I should sign up for medicare, I told him I would never, because I DO NOT want someone else paying for it which is why the Unfunded liability numbers are so high. All the central banks, and Government is doing is prolonging the inevitable with this QE (Quantitative Easing), or in simple terms printing or typing numbers out of thin air. "When all else fails, they take you to war" Gerald Celente. The top 1 percent, and bankers always comes out ahead from a crash, and wars. All wars are banker wars. Either way they win, so they will crash the economy when they are ready to, but this crash will be like no other man has ever seen or experienced before. There will be A LOT of blood on the streets. Not just here in USSA. Always remember to stay strong, stay vigilante, and stay alert at all times, and most importantly pray a lot (if you are a believer) because it could start tomorrow. Peace be with you all brothers, and sisters!

 

[Brent S]

US national debt = $18.5 trillion (rounding off)
Unfunded liabilities (rough numbers) some say $100 trillion, some say $200+ trillion (Food stamps, Medicare/Medicaid, Free housing, Free "phone service" AKA Obamaphone.
Total of Derivatives $1+ Quadrillion in debt

There is NOTHING no man or Government can do to pay off that amount of debt in a few years. The only way is to default, or let it crash. These are insane numbers. My dad told me yesterday I should sign up for medicare, I told him I would never, because I DO NOT want someone else paying for it which is why the Unfunded liability numbers are so high. All the central banks, and Government is doing is prolonging the inevitable with this QE (Quantitative Easing), or in simple terms printing or typing numbers out of thin air. "When all else fails, they take you to war" Gerald Celente. The top 1 percent, and bankers always comes out ahead from a crash, and wars. All wars are banker wars. Either way they win, so they will crash the economy when they are ready to, but this crash will be like no other man has ever seen or experienced before. There will be A LOT of blood on the streets. Not just here in USSA. Always remember to stay strong, stay vigilante, and stay alert at all times, and most importantly pray a lot (if you are a believer) because it could start tomorrow. Peace be with you all brothers, and sisters!

I'm not a doomsday prophesiser, nor a conspiracy theorist, but I agree, there is no way out of this gross mismanagement of our countries wealth. The amount of debt vs gross income is so off balance its almost a joke. Our leaders can't even slow the pace of the debt, much less begin to pay it down. I worry more for the next generation than I do for myself.

 

[Gazrok]

I remember a couple years ago a rumor that the US would confiscate the retirement accounts and use it in the general funds, while assuring the people that it would be there for them when they retire

Not thinking large enough.

This is a global problem. Simply put, it's basic economics, and we've been breaking the rules for decades, and it has caught up to us. It isn't a question of IF, it's a matter of WHEN. The powers that be have been desperately trying to fix it since the 70's, but every time they plug a hole in the boat, two more open up. Eventually, there will be too much water (debt) in the boat (our global economy), and it will sink like a stone.

When that happens, at first, cash will be king. Once faith in that is out (probably about a month or two after the crash), then only survival needs will be worth a damn.

Banks will close, nobody will be able to get cash, and it's going to get real nasty, real fast. Of course, not even the powers that be want this (if they did, they would have let it happen vs. fighting it)...because without money/credit, their real wealth doesn't mean jack. But, they are fighting a fight they can only postpone...and never win.

Sad, pessimistic? Maybe...but also just being a realist. Will it happen in my lifetime? I didn't use to think so, but now....? What do you think these government shutdowns are about, with talk of debt ceilings, etc.? You can keep raising the limit, but eventually, the bill becomes due. When that happens...we crash, and we'll crash hard this time. And sadly, I think it's not only going to be in my lifetime, but maybe even before the end of my 5 year plan. (I'm only through year 1 of it!)

 

[DrHenley]

I think it's not only going to be in my lifetime, but maybe even before the end of my 5 year plan. (I'm only through year 1 of it!)

Maybe even sooner.

 

[Gazrok]

Maybe even sooner.

Don't say that! If it can just hold out another 4 years, I should be right where I want to be then...self sufficiency wise.

 

[Brent S]

Don't say that! If it can just hold out another 4 years, I should be right where I want to be then...self sufficiency wise.

I think I'd reevaluate that timeline. I'm not selling doomsday fear here, but I still see our, and the worlds economy, on thin ice. I only know one thing for sure, that it is a lot easier to prep while the local hardware stores are open, fuel is readily available, and food is plentiful. I can't make any guarantees that any of the above will be around in two or three years.

 

[Hippophibia]

Yeah well we survived October 2015, stocks were going down big time but:

• China dropped rates for the 6th time this year
• ECB (European Central Bank) said they would increase the already $60B they print monthly and drop interest rates further into the negative
• Japan to print more money and stimulus in infrastructure spending
• US no rate increase
• The Australian banks raised rates independent of the reserve bank, said need more cash on hand in case there is another financial downturn
• One of the biggest banks in Europe are now in serous financial difficulty: Deutsche Bank to cut as many as 35,000 jobs in revamp, lost $6B last quarter

All this happened in October 2015, Remember it is always worse than what they say it is, the losses were likely more and problems much bigger than what they are reporting.
http://thenewsdoctors.com/obama-puts-us-boots-in-syria-where-is-congress/

GDP growth etc in all counties have tanked, Venezuela is the next country on verge of bankrupt - ran out of cash and selling gold - inflation above 100%

The other concern now is Obama is about to start WW3, which comes first. I think it all happens at once and what they call a bank holiday is implemented and all accounts frozen, and accounts are given a hair cut.
You guys in the US need to control that Obama???? http://thenewsdoctors.com/obama-puts-us-boots-in-syria-where-is-congress/

The chickens will come home to roost, and soon, I would say before next US election.

 

[Arcticdude]

Yeah well we survived October 2015, stocks were going down big time but:

• China dropped rates for the 6th time this year
• ECB (European Central Bank) said they would increase the already $60B they print monthly and drop interest rates further into the negative
• Japan to print more money and stimulus in infrastructure spending
• US no rate increase
• The Australian banks raised rates independent of the reserve bank, said need more cash on hand in case there is another financial downturn
• One of the biggest banks in Europe are now in serous financial difficulty: Deutsche Bank to cut as many as 35,000 jobs in revamp, lost $6B last quarter

All this happened in October 2015, Remember it is always worse than what they say it is, the losses were likely more and problems much bigger than what they are reporting.
http://thenewsdoctors.com/obama-puts-us-boots-in-syria-where-is-congress/

GDP growth etc in all counties have tanked, Venezuela is the next country on verge of bankrupt - ran out of cash and selling gold - inflation above 100%

The other concern now is Obama is about to start WW3, which comes first. I think it all happens at once and what they call a bank holiday is implemented and all accounts frozen, and accounts are given a hair cut.
You guys in the US need to control that Obama???? http://thenewsdoctors.com/obama-puts-us-boots-in-syria-where-is-congress/

The chickens will come home to roost, and soon, I would say before next US election.

Yes October was a bad month. Since then my investments have recovered more than 80% of what I lost. That's much better than I expected, but I don't trust the economy, and trust the bankers and politicians even less. Remember it was just a few years ago, 2008 or 2009 I think, that some Democrat politicians were talking about "nationalizing" our 401k's, IRA's and savings accounts. They said the government would "guaranty" a set return. I think they were talking about 3% or something. I believe there will be a major crash soon. When? I have no idea but I see it coming within the next year or two. The timing will have a lot to do with who gets elected next November. If we elect another socialist/communist like obama, then I feel that all is lost. If we get in to another un-winnable war, then all is lost. If we continue taking muzlim "refugees" and continue to allow unlimited illegal aliens in to our country, then we're lost. Over the last couple of years I've been converting many of my investments to more "tangible" assets. May even take the loss and cash out my 401k's and IRA's too. Better to take the loss now than have the government steal it all later.

 

[jimLE]

i havent been keeping up with the debt and econemy and all,as much as others here..but yet.im still surprised that the econimy still aint gone belly up yet.i figured earlyer this year,that it'd go belly up by the end of this year,if not the first half of next year..then here comes obama.< need i say more?im no where close to where i need to be,when it comes to being prepared.but yet,im still doing what i can,and when i can.while hoping for the best..

 

[Hippophibia]

The so called recovery is very fragile - as it is based on gov promised stimulus and US not raising rates. Today the markets so far are a sea of red.
http://money.cnn.com/data/world_markets/asia/

Japan -2% China -1.7% and all of Europe negative on opening at time of posting, US futures down, more bad economic news from China.
I think there are less/fewer number of investors on the world Stocks markets and a lot of the money invested is borrowed money so if stock start to tank badly there is a sudden crash, as automatic sells are implemented to prevent loss on borrowed money.

 

[Gazrok]

I think I'd reevaluate that timeline.

Wish I could, but based on what I can budget for, in both time and money. I mean, some of the basics are first anyhow...renewable water, renewable food, defense. Additional years are then to improve upon the basics, and increase comfort level post SHTF. Most of the basics are covered, at least somewhat.

 

[Brent S]

We all do as we can afford. Even if it's just a little, try to do something each day. I did just go out and buy 10 packs of toilet paper. When it's on sale I get as much as I can at the time. I got 24 count packs of Angel soft for 7.35 each. I wish I could have gotten ten more!

 

[Hippophibia]

The idea is to not survive but thrive, "The man with one eye is king in the land of the blind"..
Prepping is a big black hole that can never be filled, there is always something more to get and skills to be learnt. After Christmas and New Year there is usually lots of ham and other meat that goes 1/3 price sale - good to stock up and bottle, dehydrate etc.. January is a busy prepper time for me.

Having a prepper group might be the solution to skills and physical items. For example if you have a group of 5 in one location - only need one fire, one lantern, community cooking is more food efficient and economical, and it has big plus for security. I have large veg garden my one friend has large chicken coop gets like a dozen eggs a day.

It is something I am currently very seriously considering.

Ok back on topic if you read the last few article on the economic collapse blog things are progressing downhill fast - I agree with most of what he posts. http://theeconomiccollapseblog.com/

 

[Gazrok]

I have large veg garden my one friend has large chicken coop gets like a dozen eggs a day.

During peak times of year, with 7 chickens, I typically get about a dozen eggs a day now. Of course, when they molt though, that dips.

I go through about a bag of feed a month, at about $15 a bag. It's a pretty good return on investment

 

[Arcticdude]

During peak times of year, with 7 chickens, I typically get about a dozen eggs a day now. Of course, when they molt though, that dips.

I go through about a bag of feed a month, at about $15 a bag. It's a pretty good return on investment

Since we're moving I had to give our chickens away. Even had to start buying eggs from the store now! Big difference between farm fresh eggs and old store bought eggs.

 

[Gazrok]

Ok back on topic if you read the last few article on the economic collapse blog things are progressing downhill fast - I agree with most of what he posts. http://theeconomiccollapseblog.com/

Yep, those articles are pretty right on the money (to me)...