# Global banking collapse. What are the odds?



## PrepperRecon.com (Aug 1, 2012)

Do you think we could have a global banking collapse? Why or why not?

Here is why I think a *Global Banking Collapse* is possible.


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## Denton (Sep 18, 2012)

I don't think there is any way around the collapse. An economy based on debt can only go on for so long, and it is obvious they are about to the end of their rope. Weaker European governments are already failing (and their gold being stolen from them) and the rest of the West is seeing what will befall it as well.

America is even in deeper trouble, only it has two things that is propping it up. One is that its currency is used for oil trade - the petrodollar. The world is moving away from the dollar, however, and that is going to cause us a LOT of pain. The other thing is that it is still a superpower, but that is now only because it still has a lot of cool toys and the bomb. Again, the world is moving away from viewing the U.S. as a superpower it should consult for anything other than handouts that are to be put on its soon-to-be-worthless credit card.

That brings us to the last point. NAFTA gave the avenue of exit for all the mega-corporations, and exit, they did. The wealth is gone, the ability to create national wealth has been strangled yet TRILLIONS of dollars are on the national credit card and more is being piled on top. Why is such insanity being committed? Why would such an unpayable debt be made? They know this party is about to come to an end, anyway, and, heck, they are going to simply step off the continent and let the "people" take responsibility, anyway.

Sad thing is, we will never be able to find the real culprits and put their heads on pikes.


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## PrepperRecon.com (Aug 1, 2012)

Excellent point about the petrodollar. Not if, but when the world uses another currency to trade oil,the demand for dollars will fall fast. We will get to see what hyperinflation is all about.


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## Denton (Sep 18, 2012)

Here's an article by Ron Paul. Smart guy. Would have been a very good president:

How Long Will the Dollar Remain the World's Reserve Currency? 
We frequently hear the financial press refer to the U.S. dollar as the "world's reserve currency," implying that our dollar will always retain its value in an ever shifting world economy. But this is a dangerous and mistaken assumption.

Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold, the U.S. dollar has operated as a pure fiat currency. This means the dollar became an article of faith in the continued stability and might of the U.S. government.

In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it-- not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.

In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite radical Islamic movements among those who resented our influence in the region. The arrangement also gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as the dollar flourished.

In 2003, however, Iran began pricing its oil exports in Euro for Asian and European buyers. The Iranian government also opened an oil bourse in 2008 on the island of Kish in the Persian Gulf for the express purpose of trading oil in Euro and other currencies. In 2009 Iran completely ceased any oil transactions in U.S. dollars. These actions by the second largest OPEC oil producer pose a direct threat to the continued status of our dollar as the world's reserve currency, a threat which partially explains our ongoing hostility toward Tehran.

While the erosion of our petrodollar agreement with OPEC certainly threatens the dollar's status in the Middle East, an even larger threat resides in the Far East. Our greatest benefactors for the last twenty years-- Asian central banks-- have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency.

If we act now to replace the fiat system with a stable dollar backed by precious metals or commodities, the dollar can regain its status as the safest store of value among all government currencies. If not, the rest of the world will abandon the dollar as the global reserve currency.

Both Congress and American consumers will then find borrowing a dramatically more expensive proposition. Remember, our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending.

How Long Will the Dollar Remain the World's Reserve Currency?


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## Denton (Sep 18, 2012)

China and Mexico gonna go around the petrodollar:

China in closed door negotiations to purchase Mexican crude oil without using US - UK Indymedia

These people think it is intentional, too:

China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar


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## Lucky Jim (Sep 2, 2012)

PrepperRecon.com said:


> Do you think we could have a global banking collapse? Why or why not?...


I know zilch about economics. How would a collapse affect us? Would we find the price of everything (including food) has suddenly gone through the roof?
Will there be shortages of everything?
Will banks be locked down by the govt to prevent us getting at our money?


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## Denton (Sep 18, 2012)

Jim, here is an example of SHT economic F:

1989 riots in Argentina - Wikipedia, the free encyclopedia


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## Denton (Sep 18, 2012)

The up side of a currency problem, especially if it is global, is that it will be resolved in a matter of weeks. Those who have purchased silver and gold with the old currency before it spiraled out of control will have protected their wealth, as they will be able to trade it for the new currency, if they want to.


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## PrepperRecon.com (Aug 1, 2012)

Denton, you are right about Ron Paul. I voted for him in the primaries. Now it is about defeating Obama Care so we can hold our breath for another 4 years. Dr Paul is retiring but his ideas are still going. Maybe enough people will wake up that we can have some one like Rand Paul in 2016.


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## nadja (May 1, 2012)

In all likelyhood, we are going to see the economy go completely down sometime next year. The draught, was never figured into the already crumbling economy, and will add fuel to the fire, much like pouring gas on it. Even if Romny does get elected, I don't think it will be in time to do much that will matter. Getting rid of bummercare will be a good start. Opening up the coal mining and powerplants will help, and restarting offshore drilling, keystone pipeline, and Anwhar will all contribute to turning it around, but alas , I really think o;bummer has already done to much damage to us. He hates this country and it shows. If he loses the election, I see him as a little kid, stomping his feet and breaking things. In his case, anything he hasn't already broken, will be his target.


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## Denton (Sep 18, 2012)

Romney has no intention of saving the country, either. It isn't his job, as assigned by those who pull the political strings. He was a liberal before he began sounding like a conservative. Socially as well as economically, and with as little concern for the constitution, he is Obama, but without the racist agenda.
At this juncture, we'll need a constitutional president, a constitutional congress, and a fully prepared population to pull out of the nosedive. I don't see any of that happening.


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## nadja (May 1, 2012)

I think , like he promised, he will start to turn the enonomy, but don't think he will get to far. But I really think he will try. Hopefully, he will fool everyone and do more then we think. I think about all his grand-kids, and don't think he really wants to quash their future. I live in a mostly Morman area, and know some of them quite well. For the kids, grandkids, I honestly believe he will do all he can. Keep your fingers crossed


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## Denton (Sep 18, 2012)

I gave up hoping a politician will do the right thing. Even if he wants to, it is very bad for his health to go against those who pull the strings.

Look, I'm not paranoid, I've just read too much down through the years to not realize there's a man behind the curtain.


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## PrepperRecon.com (Aug 1, 2012)

I agree nadja, Adding energy options will help some.


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## MASQ (Sep 24, 2012)

I completely agree with Denton on this one. Even though i will vote for Romney, I do not believe that, in the grand scheme of things, it will work out. Now I am only 23 years old, but from the little I have seen of politics, and the biassed histories I have been taught through the public school system, it seems more unlikely that there isn't someone behind the scenes pulling strings.


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## shotlady (Aug 30, 2012)

yep thats why ron paul needs to get in there. nothing flashy by a constitutional dood. but hes blocked for not sucking up to every one.


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## PrepperRecon.com (Aug 1, 2012)

Spot on guys, Ron Paul is who we needed, but the sheeple don't know that yet, so we are stuck with a socialist or a communist. I'm with Masq on this one, I'll hold my nose and vote for Romney. If we don't chose between dumb and dumber, someone else will.


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## Denton (Sep 18, 2012)

Enjoy yourselves. I'm done voting for the lesser of two evils. either way is evil, and the notion of being "lesser" is only an appearance, so that we will not wake up and realize that the constitutional republic was destroyed and replaced with a democracy, a system that always degrades into a tyranny, a system used to manipulate the people into placing the chains on their own legs so that the puppeteers can always say to us, "Hey! You wanted this; you always took place in our creation by voting. Every single time you voted, you validated our process!"

I will never, ever again vote for those who are evil. I'll vote only for those who are clearly IAW the constitution, clearly against the Federal Reserve and clearly against the United Nations. Any other vote is for the same one, the puppeteer.


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## AquaHull (Jun 10, 2012)

Michigan goes Democraptic most years, more so this year. I'll vote for Gary Johnson and start turning this BS Ship around.Michigan has had it's fill of the Romneys already.


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## Denton (Sep 18, 2012)

Former ECB Chief Economist Says ECB Is In Panic, As Czech President Warns The End Of Democracy Is Imminent


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## nadja (May 1, 2012)

Denton, can you clarify this a little more ?


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## Lucky Jim (Sep 2, 2012)

Denton said:


> ..I will never, ever again vote for those who are evil..


Good for you mate, Obi Wan Kenobi summed it up perfectly- "Which is the greater fool, the fool or the fool who follows him?"
I often go many years without voting for our Brit clowns because hell will freeze before I vote for a fool.
Only on those very rare occasions when a politician comes along who's worthy of my precious vote will I give it to him..
At the moment I kinda like UKIP (United Kingdom Independence Party).


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## Denton (Sep 18, 2012)

nadja said:


> Denton, can you clarify this a little more ?


Be more than happy to. Where's the part requring elaboration?


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## socom8721 (Sep 20, 2012)

it is like the kid and the dike story... plug one hole and many others start springing up... That is what has been happening with the Global Economy for years. You saw what happened in Bosnia and Albania... this will start happening in Southeast Asia and Asia soon as well... The economies were and are riddled with and dominated by Ponzi or Pyramid Schemes. These will collapse and millions will loose billions... Then the unrest will fall along ethnic and religious lines and so on and so on... What has happened (happening) in Greece will soon happen in Spain and Italy and most of Europe and Eastern Europe soon as well.

China is positioning itself but that soon will not matter either.

So, then what will happen, one world government attempts?


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## MASQ (Sep 24, 2012)

I do not see humans, as we exist in our current evolutionary stage, as ever being able to coexist in a one world government. This planet would burn before some people would suck up their pride, put their differences aside and see one another as just another person trying to survive.


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## David Davidson (Jul 20, 2012)

To be honest I can't see the this ending without us defaulting. The gap between Federal income and expenditures is just to great to close. I think once the world feels reasonably comfortable trading Oil in yuan China will stop buying U.S bonds and the S will HTF.


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## Lucky Jim (Sep 2, 2012)

I know zilch about economics, I've been watching youtube tutorials explaining it but I'm still in the dark because they're not dumbed down enough for me to understand.
Basically i'm trying to visualise how an economic collapse would hit us, namely-

1- Would we have advance warning and see it coming?
2- Would we find the price of everything (including food) has suddenly gone through the roof?
3- Will there be shortages of everything including food? Will people actually begin to starve?
4- Will banks be locked down by the govt to prevent us getting at our money?
5- How long will the crisis go on for, weeks, months?


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## Denton (Sep 18, 2012)

Lucky Jim said:


> I know zilch about economics, I've been watching youtube tutorials explaining it but I'm still in the dark because they're not dumbed down enough for me to understand.
> Basically i'm trying to visualise how an economic collapse would hit us, namely-
> 
> 1- Would we have advance warning and see it coming?
> ...


1- You are seeing it happen, now. At least, that is what I think. The Fed is printing like an out of control idiot. The only reason our debt to GDP ratio hasn't already capsized us is because of the "petrodollar" status.
The weakest European nations are already struggling hard. A recent article explained how Spaniards are already dumpster-diving in order to survive.
While our TV-Heads are ignoring it, the world is seeing an economic slowdown. People have no money, so they buy a lot less, and they are forced to buy on credit. Less buying means less need in manufacturing. See the loop? Now, central banks interfere by printing money. That makes the money worth less, which causes inflation. This further hurts those who are already hurting.

Also, remember how all the banks are tied together. This bank loans to that bank, which buys the debt of that nation....
...remember the debt lock-up of 2008? They are suspecting the next one to make that one look like a walk in the park. People are fearing that, and are taking their money out of the banks. This helps quicken the next lock-up.

Weeeeeeee!!!!!!!!!!


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## Lucky Jim (Sep 2, 2012)

Denton said:


> ..People have no money, so they buy a lot less, and they are forced to buy on credit..


Forced to buy exactly WHAT on credit? I've never bought anything on credit in my life, and have never had or wanted a credit card. My bank gave me one last year but I didn't bother activating it and I cut it up. See how banks try to control and brainwash peope into thinking they need cred cards? I don't dance to anybody's tune except my own..
_Jesus said-"The world wants you to dance to its tune" (Matt 11:16/17)_


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