Welcome the last days of 2010

The possibility is high right now for a massive deflation on the US dollar (in relation to other international currencies). A deflation will mean a contraction of their currency supply, perhaps 10% or more. Even the creation of further currency (from the Federal Reserve) with its hyperinflation may be last throws of the economic collapse. Bear in mind - 85 % of the credit creation in the US is created by fraction reserve lending - as the economy collapses the liquidity levels will wind down. It will be a mess!

But that’s the US, separate from us hey and our dollars great against the US dollar right?

Wrong; oh the parity looks good, but what happens in the US will have an immense effect on the Australian economy.

Why? As the US market collapses (as it will) the world markets will react accordingly - our immediate concern is that the Chinese economy will contract- as it currently is in the process of doing (moving their focus into Gold and Silver) and increasing their interest rates. This will causing a massive flow on effect to South East Asian Region. Be concerned, be very concerned if the US expedites a private sale of its gold reserves to China - this will accelerate the demise of the dollar

Australia will be the recipient of a tremendous negative flow on effect due to our Governments poor economy policy

But that’s okay because we have massive infrastructure programs that will provide alternative work to the onrushing unemployed - oh sorry this is Australia- we didn’t invest in that; well anyway we can rely on our high tech programs and use these as drivers as impetus to new levels of production and power generation, this will provide work and greater productively for our economy- whew - talk about just in time - oh sorry your right this is Australia- we didn’t invest in that either. Well at least we have our banking system totally insulated and firewalled from the coming collapse- we will survive - we did fire wall the banking system didn’t we? We are exposed to our many trillions of dollars of derivatives!!!!!!!!!!!!!!!!!!!!!!!

I guess at least we can laugh at ourselves, but the onrushing destruction will not be anything to laugh at! I would suggest you learn about physical economic principles. Demand your political party explain to you how they will solve Australia’s economic woes; then work through their answers. Find alternative parties such as the Australian Voters Party (in the process of forming) or the Citizens Electoral Council of Australia. Their economic and banking policy may give Australia a fighting chance.

Make no mistake this will be an economic collapse; however, if all else fails the best way to firewall ones self; first  get out of debt and perhaps establish a trust fund for any superannuation fund that you have left; and self manage that investment in industrial productive and agriculture enterprises (in Australia). One could, if they had the means, invest in gold or silver (not gold or silver shares) and alternative energy supply (solar panels appear as the only alternative) to manage the massive power hikes that we will see in the immediate future. However all these steps, this will have a minimal effect compared to a positive influence of a functional national economy, directed under correct principles with a vision of development into the future.

want to contribute and assist in our education program contact us on info@amsd.com.au

This entry was posted on Sunday, December 26th, 2010 at 5:54 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. If you like this article, please Digg It, add it to your bookmarks with del.icio.us and/or submit it to Sumbleupon.

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