Markets Tumbling All Around The World — Economy Set To Slow — Debt Ceiling Crisis Grows!!! DOW -145!!!

US debt bomb being defused a little bit before D-Day.

It depends on the message they want to send us as to whether it rallies at the end of the day or NOT

Morning Luisport, thanks for staying on top of the financial and economic news!!

Just checked PM's and they took a good pop in the last few minutes. Silver up 54-cents and gold up $12. This is the way PM' should be acting in the face of today's problems.....

And this is only the beginning wait until we default, then things will be so bad it will leave people in total shock. Oh wait though some of us have been saying this day was coming, and lucky us we prepared for it.

The bankers will print whatever it takes to keep the markets from crashing. The entire paradigm is in jeopardy if they don't.

So continue...

VIX up 10% Weeeeeeeeeeeeeee

lol

They call it the fear index for a reason

I think my zim dollars will be worth loads after we default yipee, I will be rich. I wonder if the stores will take a few trillion zims for food.

This is just the repositioning part of the fall...wait till it really gets going.

They'll have this back up in no time at all.

Umm OK, so lets follow your analogy. You cant just stop buying food or paying rent just to cover your credit card interest without some other consequences. The govt has been living like an irresponsible college dropout for years now and they will ultimately go bankrupt. Mommy and Daddy are going to cut them off for good eventually.

SD, is this the beginning of what you wrote about?

Hi Luis,

October is usually a volatile month for the markets. I expect this October to be no different and possibly terrible in terms of losses. What we are seeing world wide is deflation of asset values on a massive scale. It will continue for a while unabated.

Ultimately precious metals may be somewhat safe.

Cheers,

Tesla

Rumors flying in banking circles that if there isn't a debt ceiling deal this week the S&P is prepared to downgrade U.S. Debt...

I hear what you're saying ... There's a strong narrative to support it ... certainly there will eventually be some kind of big financial re shuffling ... question is will it be this year, next year, 10 years or 50 years away? Real estate and gold can be very, very volatile as well. Our current financial system is set up to rapidly provide capital for projects and companies and clearly, there's a lot of clipping of profits as those digits move through the system. Don't forget, there are literally thousands and thousands of very alert traders that watch the markets like a a hawk. It's not as easy to manipulate as you may think. Many bankers are absolute scum, but not all of them. IF there's a global conspiracy, then a tiny fraction of the bankers know about it and the rest are trying to make the system work. It's nostalgic to wish for a system of gold backed currency but there are some real problems with that too and on some level, gold is much, much easier to manipulate and for the wealthiest to control than the system we have now. There are so many competing interests and checks and balances in our current system that it's not that easy to get away with a huge conspiracy. Not impossible, mind you and we certainly need reforms, but gold backed monetary systems can really put the brakes on growth make capital for the small guy very difficult to get and can be a real poverty generator.

pretty DOOMY article from a well known German magazine about what could happen if the US defaults and the implications for Germany

[link to translate.google.de]

They have just found reserves of gold in China greater than all the gold man has had since history began if their estimates are for real the US dollar within a few years will be history

LMFAO!!! Thumbed that up!!

Personally, I don't find owning gold to be a very interesting thing at all. It's a shiny rock. Owning shares of companies and investing in products, ideas and global trends, to me at least, is infinitely more interesting than buying pieces of metal and putting them in a vault. There's a place for that, to be sure, but if we want a dynamic world where new ideas can find funding and entrepreneurs can thrive, I certainly don't want the growth of capital at the global level to depend on whether or not the wealthiest on the plan want to pull more shiny metal out of the ground or not. Gold, as a stand alone asset, does almost nothing at all to advance the state of the world and serve mankind. It is simply an arbitrary system of concentrating value that has a lot more benefits for the wealthy than everyone else. Having said that, we need a lot more serious thought on how to enable currency and debt to truly serve everyone, not just those at the top of the pyramid.

We also tend to place a ton of blame on the monetary system for things that should really be blamed on the simple collusion between business and government that should be rooted out and destroyed. Lots and lots of reasons for this collusion, but, in general, if more energy was placed on creating a 100% transparent relationship between the money that goes into politics and the deals that get made and force all politicians, lobbyists and business titans to fully disclose all deals they make, I think the monetary systems would work much, much better.

zerohedge ‏@zerohedge 1 min
G-20 DRAFT SAYS QE WITHDRAWAL VOLATILITY POSES `IMPORTANT RISK' as most rehab clinics know

THe US will not default. We are nowhere near that level of dysfunction. Not raising the debt ceiling is NOT defaulting on our debt.

Downgrading US treasuries would have a devastating effect on both the government/services and the domestic economy. I think the price of oil would skyrocket and that would be the final nail in the US economic coffin.

Doom and more doom!

Tesla

zerohedge ‏@zerohedge 2 min
OBAMA: WILL NEGOTIATE AFTER GOVT OPENS, DEBT CEILING RAISED. that word... it does not mean what you think it means.