"The bank said the damage caused by the financial excesses of the last quarter
century was forcing the world's authorities to take steps that had never been
This gamble was likely to end in one of two extreme ways: with
either a resurgence of inflation; or a downward spiral into depression, civil
disorder, and possibly wars. Both outcomes will cause a rush for gold.
are throwing the kitchen sink at this," said Tom Fitzpatrick, the bank's chief
"The world is not going back to normal after the
magnitude of what they have done. When the dust settles this will either work,
and the money they have pushed into the system will feed though into an
"Or it will not work because too much damage has already
been done, and we will see continued financial deterioration, causing further
economic deterioration, with the risk of a feedback loop. We don't think this is
the more likely outcome, but as each week and month passes, there is a growing
danger of vicious circle as confidence erodes," he said.
"This will lead to
political instability. We are already seeing countries on the periphery of
Europe under severe stress. Some leaders are now at record levels of
unpopularity. There is a risk of domestic unrest, starting with strikes because
people are feeling disenfranchised."
"What happens if there is a meltdown in
a country like Pakistan, which is a nuclear power. People react when they have
their backs to the wall. We're already seeing doubts emerge about the sovereign
debts of developed AAA-rated countries, which is not something you can ignore,"
While I have been laughed at over this by some people, my statements that we are headed towards possibly both a world war and a civil war, are becoming less unrealistic all the time. One topic I have not written about before here but have been following with interest, is the building up of troops domestically. The official line is that it's in case of a terrorist attack, but, it does not take a leap of logic to think that perhaps the government fears civil war, rebellion, etc.:
"The U.S. military expects to have 20,000 uniformed troops inside
the United States by 2011 trained to help state and local officials respond to a
nuclear terrorist attack or other domestic catastrophe, according to Pentagon
And, on that note, I found it fascinating that South Carolina declared a tax-free holiday on guns, in support of the Second Amendment in light of the elections:
"The tax break applies to handguns, rifles and shotguns, but not to ammunition
or antique or collectible handguns. Though Gov. Mark Sanford vetoed the bill
creating the tax holiday, his veto was overwhelmingly overturned in both
legislative chambers. Former Sen. Catherine Ceips of Beaufort and Reps. Bill
Herbkersman of Bluffton, Richard Chalk of Hilton Head Island and Shannon
Erickson of Beaufort all voted for the holiday. Sanford spokesman Joel Sawyer
said the governor would “rather have tax relief applied in a broad-based fashion
over the entire year than a particular holiday for a particular item.” Though
the legislature defended it as an expression of support for gun rights, the
holiday comes as the state is facing steep revenue declines. Florida and
Maryland have scaled back sales tax holidays due to sharp drops in revenues. The
state Board of Economic Advisors estimates the upcoming sales tax holiday will
result in about $15,000 in consumer savings and lost revenue. Herbkersman said
$15,000 in lost revenue is well worth helping out gun buyers."
South Carolina encouraging citizens to buy guns...it has an uncanny resemblance to the South arming itself in the 1850's.