A reader passed this along to me, and I am still waiting for the link to where it came from (if he did not write it himself; it was all that was in the email), but I found it to be pretty interesting and wanted to post it here. Seems someone that probably knows more than I do put together a list of indicators that our economic system is about to collapse and what we should be looking for. What do you guys think? I especially want to hear from those of you who know more about economics than I do (which, as little as it is, is still more than S. Palin knows. 😉 )
A sharp spike in the Federal Funds Rate
News of a failed Treasury auction, or news that Treasury rates have spiked
Overt talk of a US default by Asian or European bankers
Multiple (8+) simultaneous US bank failures on one Friday
Any large Northern Rock style bank runs in the US (with customers lined up on the streets)
A stock market drop of more than 1,200 points in one day
A large and sudden spike in inflation
Any suspension of US stock trading
Draconian new stock trading limits (for example any new “circuit breaker” rules, followed by news that the trading was halted because of the limits)
New restrictions on either precious metals purchasing reporting requirements
New limits on moving funds outside the US
Any large derivatives trading collapses.(Because of disappearing counterparties or illiquidity.)
News that hundreds of hedge funds are suspending redemptions
News that many Money Market funds are dropping below $1.00 Net Asset Value (NAV)
The US Dollar Index (USDI) dropping below 68 for more than one full week of trading.
Any sudden large interest rate moves by the FOMC. (Up or down.)
Rioting in several metropolitan centers simultaneously. Gold spiking past $1,500 per ounce
News that any major western power is no longer accepting US Dollars in payment for key commodities
News that any major trading partners are no longer rolling over the majority of their US Treasury paper
A closed session of the full congress that lasts a full day or longer.
The Treasury starts to extensively monetize debt. The resignation of either the Treasury Secretary or the Federal Reserve Chairman.
So, what do you think of this list?