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True state of the banking system
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John Burns
Posted 1/25/2010 20:10 (#1041129 - in reply to #1040971)
Subject: You can say that again.....



Pittsburg, Kansas

Oh, I guess you already did. LOL

I agree that things do not look good. The GOOD news I think we will work our way through this, just like we have in the past. There have been two separate events since the great depression where our currency devalued about a third and we survived both of those events. Even if it turns out as bad as what the Great Depression was, although painful, I don't recall of people actually starving. Times were tough but the country worked its way through it. We will again. We in the farming areas away from the big cities will not feel the pain as bad as the inner cities. Places like Chicago already are getting in dire straights where the unemployment is vastly worse.

I don't believe we will have a complete collapse of the dollar although I also do not rule it out completely. Surely someone will come to their senses before it gets to that. On the other hand, even Zimbabwe turned the corner almost instantly once the currency collapsed completely and external currencies became the defacto monetary instrument to conduct trade. With no local currency and no central bank to debase the currency inflation stopped in its tracks, goods prices started to stabilize,  and the economy started to recover. The point being, even in the most imaginable worst case senario, things eventually right themselves despite governments "help".

John

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