Home » July 31st, 2011
July 2011
It really is hard to find the words to describe the true horror of the national debt of the U.S. The U.S. government has been on the greatest debt binge in all of human history, and a day of reckoning is coming that is going to be so painful that it is going to shock America to the core. We have lived so far above our means for so long that none of us really has any concept of what “normal” is like anymore. The United States has enjoyed the greatest party in the history of the world, but now this decades-old party is ending and the bills are coming due. Our current system is headed for an inevitable collapse. There is no way of getting around it – a horrific economic collapse is coming [and] it is going to change the world. You better get ready. [Let me explain further.] Words: 1771
July 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
The new [debt ceiling deal] legislation will add $2.4 trillion to the $14.3 trillion national debt in a little over a year – and we don’t even start saving money until after the debt reaches $16.7 trillion! This bill doesn’t even cut the deficit. It just slows the growth of government spending to around 8% a year! So, even if Congress cuts $2.1 trillion out of the budget over the next 10 years, we will still be running annual deficits of more than $1 trillion…[That means that in addition to a deficit that will continue to grow we can look forward to a shrinking economy, an imploding U.S. dollar and exploding inflation. Some future! Let me explain.] Words: 827
July 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
Even though the U.S. has managed to avert a debt crisis and perhaps a ratings downgrade, there remains a stain on our reputation, a scarlet “A” for budgetary “Abuse,” that will not disappear. The whole world was watching, and what they saw was a dysfunctional government taking its country to the financial precipice and backing off at the very last moment. [That being said, what options does the U.S. government have to reduce/eliminate its current $10 trillion of outstanding Treasury debt and an unfathomable $66 trillion of future liabilities? I have identified 4 likely courses of action all of which will lower the standard of living of every American.] Words: 1374
July 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
Silver has more than doubled [in price] from its 2008 multi-year high…primarily due to demand among the industries of the developing world…and among those industries where silver is virtually irreplaceable… If silver goes too high, however, it could provoke government interference in the name of ensuring national security. Let me explain. Words: 606
July 31st, 2011 | Posted in Gold/Silver,Investing | Read More »
The plunge in global markets this week qualifies as a genuine panic according to the VIX index of implied equity volatility divided by the yield on 10-year Treasuries which measures how pessimistic the market is, and how much actual deterioration in the fundamentals there has been… [So,] are we finally on the cusp of “the end of the world as we know it”? Words: 437
July 31st, 2011 | Posted in Investing,Stock Indices | Read More »
Credit rating agency Standard & Poor’s has downgraded the U.S. debt rating for the first time since the country won the top ranking in 1917. The rating was dropped from AAA to AA+ because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation and S&P’s was “pessimistic about the capacity of Congress and the administration to leverage their agreement this week into a broader [deficit cutting] plan that stabilizes the government’s debt dynamics any time soon.” S&P also issued a negative outlook, meaning that there was a chance it will lower the rating further within the next two years, and warned that a downgrade to AA would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period. Words: 733
July 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
Buy-and-hold gold and silver and [the stocks and long-term warrants of quality] precious metals miners – and sleep well at night. [Let me explain why that is the case.] Words: 731
July 31st, 2011 | Posted in Gold/Silver,Investing | Read More »
It was suggested 1.5 years ago that the next stock market crash might be one orchestrated by the Fed to create interest from historic buyers of US debt. The scenario went like this: you let the stock market collapse (i.e. no interference by the infamous “Plunge Protection Team”) to generate a “flight to safety” environment which would push billions, if not hundreds of billions, of dollars into U.S. Treasuries, soaking up its increasing debt issuance and roll-over with little difficulty thereby flooding the bond market with much needed demand. Were the recent dramatic declines in the U.S. stock markets so engineered by the Fed? Words: 852
July 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
The following 10 reasons give a foundation for why I believe we may be approaching another recession. Words: 903
July 31st, 2011 | Posted in Economic Overview,Economy | Read More »
The idea that an increase in the debt ceiling is a solution to anything is nonsense. The event would be simply a can kick forward for a very short period of time. Increasing debt is not a solution to a debt problem. It actually makes the problem worse. It is an act of extending your Federal credit card borrowing line so you can use it to pay your mortgage. Words: 590
July 31st, 2011 | Posted in Gold/Silver,Investing | Read More »
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