From le Met

Double dip debate?

To all, the great debate currently is whether or not the dreaded “double dip” is coming. I’m sorry but why is there even a discussion much less a debate about this? It has already become obvious that the recovery was not “V” shaped and in fact was quite anemic especially considering how much stimulus ammo has already been spent. The reality of today suggests to me that the only things debatable are how much QE are we in for and how long before the currency crisis/U.S. Treasury collapse arrives. I am very serious about this, all the other periphery debate about retail sales, housing, employment etc. are nothing more than noise, the real debate now should be and WILL be regarding the remaining life span of the reserve currency, the Dollar.

Actually, the coming “debate” shouldn’t be about “if”, only “when”. I say this because mathematically governments worldwide have already killed themselves and are merely walking zombies. How paradoxical is it that the crisis came about because there weren’t enough Yen, Pound, Euros and especially Dollars to pay debt service yet governments have created these very same “scarce” currencies on a massive scale? In other words [and I will use Dollars] Dollars are hard to obtain [as evidenced by poverty, bankruptcies, foreclosures etc.] yet they can be and are being created for free on a massive scale! Do you see the irony here? People need Dollars to survive and can’t get them yet the government needs them to hold value and can only and must create more of them!

While writing this piece I overheard someone refuting that today resembles Sept. 2008 by saying that everything was “frozen” back then and credit is flowing freely today so everything must be well. I haven’t figured out how to work my webcam yet but I’m pretty sure I was quite the humorous site yelling at the television screaming “you idiot! don’t you see the difference between 2008 and now?”. This in a nutshell is what people have missed so far, another bout like 2008 will not and can not be fixed by “government edict” and more “free money”! This next chapter of the financial crisis is going to suck governments into the vortex of bankruptcy along with all the rest. It didn’t have to be this way but sovereign governments far and wide [especially the U.S.] refused to allow Mother Mature to cleanse the system and thus put their own financial survivals at stake.

There will be no “White Knight” this time around and the worst fears of 2008 will be far surpassed because nothing was ever fixed. The only thing that was accomplished was to blow the bubble bigger and one that now includes sovereign governments and their currencies. I say “White Knight” because that would entail saving the fiat system which is now no longer possible. However there is a tiny Golden island out there that will act as refuge to those who are wise enough now to understand that their governments will not feed, clothe, nor house them! This you will need to do for yourselves because your government is flat broke!. Regards, Bill H.

My comment: You can’t have a double dip with out a recovery in between!

No recovery —> no double dip!