Tag Archives: debt
Right now, there is a very heated contest occurring in the precious metals community – a war between the banksters, Wall Street elite, and mainstream news financial pundits over who can make hard money advocates most afraid of owning gold, silver, and mining stocks. These bad boys are working triple overtime to scare precious metals investors that the US dollar will somehow continue to gain in stature and value against other competing investment classes, hard commodities (e.g. precious metals), and foreign currencies.
Those investors whose trading accounts and positions in physical metals have been underwater recently are especially susceptible to the siren song sung by the world’s ruling elite. After all, it is their job to keep the masses heavily invested in their counterfeit, fiat paper currencies while they reap a fortune of trillions from sovereign debt based interest while converting it to physical assets.
With the euro currency in turmoil as a reaction to the European sovereign debt crisis and the attendant threat that it poses for European bank lenders and US investment bank credit default swap issuers who are on the hook to guarantee counter party risk, the US dollar has once again become the temporary life boat darling sent to rescue all the passengers jumping overboard on the euro currency Titanic.
But, how really safe is that US dollar lifeboat? After all, a national currency is only as valid and secure as are its nation’s finances, debt, and banking system. And folks, I’m here to tell you that all of these are in hideous condition here in the good old USA. The Obama Administration is preparing to ask Congress to raise the US borrowing limit by another $1.2 trillion. White House press secretary Jay Carney reported on Tuesday, “I’m confident it will be executed in a matter of days, not weeks.”
Congress will undoubtedly kowtow and comply. With that merciless genuflection, the US national debt will be instantaneously increased by nearly eight percent, from $15.2 to $16.4 trillion. However, it is highly unlikely that this will be enough to pay for the profligate spending of our fearless leaders for the remainder of fiscal 2012. Another trillion or so will undoubtedly be needed by summer (we’ll bet you a bottle of good champagne on this).
Of course, the total debt obligations of the United States, if we take into account the unfunded liability of Social Security, Medicaid, Medicare, and a litany of other government pensions and entitlements, is actually far in excess of $100 trillion, an amount that can NEVER be repaid. Add to this the terrifying reality that the major “too big to fail investment banks” are carrying derivatives trading risk in the hundreds of trillions of dollars that dwarf their capital reserves by many thousands of times. Bank stocks have felt this and are cratering accordingly. The world’s largest bank, Bank of America, has seen its stock plummet in the last five years from over $50 per share to its current price of $6.87.
Please also include a non-reported but raging inflation of commodities in the US. For example, US grocers have reported that the average cost of a Thanksgiving dinner in 2011 increased by over twenty-three percent from last year. Add this to a country that sees over fifty million people having to use food stamps to survive and you have a recipe for a financial Armageddon.
And you are still worried about the viability of gold and silver? You still think the US dollar junkies are going win this end game?
We at Kristos Trading love competition. So, we have decided to enter the gold/silver versus dollar contest. We are going to carry into this great battle just ONE weapon, what we lovingly call the “Ultimate Fear Chart.” Please take a moment to study this chart carefully.
This is the gold chart for the last fourteen years. It reflects the continued waning confidence in paper currencies, especially the US dollar, and the accumulative trust in precious metals as the ultimate safe haven of wealth. There is always a risk in any investment but does this fourteen year chart make you think that gold is going to fall off the graph against the dollar? We don’t think so either.
Life is always a gamble of some sort. Life always entails some risk. There is a war being fought right now between the Bernie Madoff/Jon Corzine type world criminal class against the common people – the wage earners, the small business owners, the savers, and the lovers of freedom and liberty. Recognize that this IS a war and if you are going to have a chance to win this war, you need to get tougher and stronger. Stop worrying and start fighting. In the gold war against the fiat currency Nazis, you have got to be a soldier. Republican candidate Ron Paul has fought this criminal crew for over thirty years and at last, his message is starting to gain traction. The voices for liberty and freedom, with which precious metals resonate so perfectly, are on the rise. The tide against evil and usurpation is beginning to turn.
The fundamentals for gold and silver have never been stronger. They are the only legitimate money recognized by the US Constitution. Now is NOT the time to fear your investments but, rather, it is the time to jump on board the gold and silver express freedom train. Let’s drive the bankster and paper currencies mercenaries out of our sovereign land. Let’s send the paper dollar bugs home in disgrace where they belong. This is not a time to sell your precious metals, it is the time to buy!
To learn more about the rewards of precious metals investing, including how to fund your existing retirement account with gold and silver, call Kristos Trading seven days a week at 888.385.1116. To learn about the very best referral program in the precious metals industry, please visit the Kristos Trading Referral Program.
We will take all the time that you need to go over the specifics with you.
Not even an hour after we asked the question, The Hill gives us the answer: “The Obama administration will be asking Congress to raise the debt limit in the coming days, White House press secretary Jay Carney said on Tuesday. “I’m confident it will be executed in a matter of days, not weeks,” he told reporters. The notification by the administration — which had been scheduled for last month — was delayed because Congress has been holding only pro forma sessions. The White House will be asking Congress to raise the U.S. borrowing limit by $1.2 trillion.
Now that US Congress provides “solutions” on a month to month basis with outcomes delayed until the 11th hour and 59th minute, the Treasury funds itself paycheck to paycheck, hedge fund LPs only allow a daily lock up and demand liquidity statistics (as in how much of the entire book can be sold on an hour’s notice), and all that matters is what happens in the next few hours, it is JPM’s turn to raise Q1 GDP… at the expense of future growth. Because nobody really cares about the future anymore: after all following yesterday’s lowering of Q3 GDP, US debt/GDP is now 100.04%. But nobody wants to talk about that because, once again, it’s about the future. And we are having enough issues with the present as is. Here is JPM’s Michael Feroli just hiking his short-term forecast, knowing too well he will eventually have to lower future growth. But that is tomorrow’s, and thus, someone else’s problem. In the meantime, #40dollars sure goes a long way. ………….
As most Polish citizens can hardly fail to notice, Europe is experiencing a time of growing economic turmoil. So much so, that leaders of Euro zone countries are now desperately searching for ways to prop up their tottering national economies as well as to maintain commitments to what is termed ‘moneytary union’ – the euro zone holy grail.
Countries outside the euro zone also find themselves caught up by the effects of the gathering financial storm and are attempting to pitch their camps as appropriately as possible to deal with it.
But one thing that countries both inside and outside the euro zone share is a common problem of ‘debt’. Levels of national borrowing (sovereign debt) have, over the past decade, exceeded the ability of many countries to pay back the ensuing interest and capital within permitted time zones, thus catalysing the ‘restructuring’ of these loans by the lenders and the setting of new terms for repayment. The ‘lenders’ are thus put in a position of great power: they can pull the strings and set the agenda – so long as the countries which are borrowing wish to maintain their particular moneytary policies and ambitions for ‘economic growth’.
Poland, however, finds herself in a position of reasonable resilience to the euro zone storm. With a an economy that is largely internally stimulated and not overtly reliant on exports, the Country looks in fair shape to resist at least the worst consequences of the black hole which the euro zone is rapidly turning into.
All the more bizar then, is the determination of prime minister Tusk to throw his Country right into the centre of the black hole and to thereby surrender Poland’s hard won independence to a bunch of unelected technocrats who are the puppet masters of the European Commission and its various agencies. …
Even though most Americans have become very frustrated with this economy, the reality is that the vast majority of them still have no idea just how bad our economic decline has been or how much trouble we are going to be in if we don’t make dramatic changes immediately. If we do not educate the American people about how deathly ill the U.S. economy has become, then they will just keep falling for the same old lies that our politicians keep telling them. Just “tweaking” things here and there is not going to fix this economy. We truly do need a fundamental change in direction. America is consuming far more wealth than it is producing and our debt is absolutely exploding. If we stay on this current path, an economic collapse is inevitable. Hopefully the crazy economic numbers from 2011 that I have included in this article will be shocking enough to wake some people up.
At this time of the year, a lot of families get together, and in most homes the conversation usually gets around to politics at some point. Hopefully many of you will use the list below as a tool to help you share the reality of the U.S. economic crisis with your family and friends. If we all work together, hopefully we can get millions of people to wake up and realize that “business as usual” will result in a national economic apocalypse.
The following are 50 economic numbers from 2011 that are almost too crazy to believe….
#1 A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.
#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.
#3 If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
#7 Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.
#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
Government spending drives taxes, deficits, debt and inflation, so it’s at the core of our economic problems. What to do about runaway spending? The tendency is to imagine that it might be controlled by electing the right politicians, enacting a law like a balanced budget amendment, passing a spending limitation ballot initiative, establishing a super committee or coming up with some kind of “grand bargain.”
These and other well-intended strategies have failed, primarily because they were attempts to have politicians act against their self-interest. Politicians generally want more power which means more money, more laws, regulations and bureaucrats. Historical experience suggests that rulers – whether kings, dictators or elected politicians — have a visceral urge to spend money they don’t have. They can’t control themselves. They’ll weasel their way around any efforts to put a lid on the cookie jar. This is why rich nations like Japan, Saudi Arabia and the United States are spending money they don’t have and incurring chronic budget deficits.
All of this has been has been going on for a very long time, a reminder that we’re dealing with one of the most potent forces in politics. Runaway spending repeatedly has contributed to the downfall of the high and mighty.
For example, spending problems began to be evident in the early years of the Roman Empire, and they became huge in the third century C.E. Perhaps as early as the third century B.C.E., Rome began minting a gold coin that came to be known as the aureus. Originally the face value of the coin equaled the market value of gold in it. ……