I am astonished to see how much money the central banks are printing and how their balance sheets are expanding. We have the absolute perfect recipe for hyperinflation and thus a massive increase in the price of gold and silver.

So said Egon von Greyerz (www.goldswitzerland.com) in edited excerpts from an interview* with King World News.

 Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

von Greyerz went on to say, in part:

It’s not just the ECB balance sheet that’s gone up in the last six months or even the last three months by hundreds of billions of dollars. It’s the same with the Fed, Bank of Japan, The Bank of England and the Swiss National Bank. They are all exploding. This can lead to only one thing -  an explosion higher in gold and silver prices and the beginning of the massive inflation, which will lead to hyperinflation. Unfortunately, the market seems to be totally ignorant of this.

Regarding the Fed

The recent Fed action is totally consistent with what we’ve said for some time. The Fed knows they have to continue to print money and they will print unlimited amounts of money. On top of this, the U.S. is not taking any measures whatsoever to cut down on spending.

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Every year the Fed is printing between $1.5 trillion and $2 trillion. As you know, just during President Obama’s term the debt in the U.S. has gone up by about $4.5 trillion. This is about 30% of total borrowing in the U.S. It’s just incredible and it’s accelerating – but they are not the only central bank doing this. The ECB is in the same mess…

Regarding Gold

The move in gold, so far, looks extremely good. I’m always pleased that we don’t have a straight move up, although I do think we will have faster moves higher in the not too distant future. This is strong action with small corrections.

I think that within the next couple of months we will certainly be touching $1,900 and continuing higher from there. I don’t think $1,900 will be a stopping point for very long.

Regarding Silver

I really like the action of silver. Silver still hasn’t broken out like gold has, but I can see $37 being taken out within the next 30 days and then we will just start flying from there. It won’t take long to get up to $50 again.”…

Regarding Mining Shares

Regarding mining shares, I like them here. We’ve started buying them. We prefer physical bullion, but we’ve now started buying mining shares because they are massively undervalued and they will move a lot faster than the metals…

Conclusion

[As I said at the top of the article the actions of the central banks around the world] can lead to only one thing – an explosion higher in gold and silver prices and the beginning of the massive inflation, which will lead to hyperinflation.

*http://goldswitzerland.com/index.php/vongreyerz-gold-market-positioned-for-massive-upside-move/

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3.  Why More QE is Coming and What That Means for the Future Price of Gold

Most traders and some economists believe the Fed will step in with another round of Quantitative Easing (QE3) in the first half of 2012. This will pump up the stock market, particularly bank stocks, giving the impression that the US economy can’t be that bad, after all, [but in the process] debase the dollar and reduce purchasing power. [This, in turn, will result in higher]…inflation causing prudent investors to buy more gold. [Let me explain further what I see transpiring this quarter and why.] Words: 718

4. 2012: More Money-printing Leading to Accelerating Inflation, Rising Interest Rates & Then U.S. Debt Crisis! Got Gold?

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5. These Indicators Say Inflation to Go to 4% Soon – and 6% by 2014

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6. Will This Be The USA in 2012?

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8. News Flash! The Fed Has Declared That It MUST Create Inflation! Got Gold?

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9. The Fed MUST Inflate Away Debt or Default So MAJOR Inflation IS Coming!

If our assessment is correct, over the coming years, stocks, precious metals, commodities and real-estate will appreciate in value versus paper currencies. Furthermore, on a relative basis, we expect precious metals and commodities to outperform all other asset-classes. Conversely, we anticipate that cash and fixed income instruments will probably turn out to be the worst assets to own over the next decade. Words: 869

10. Major Changes in Inflation, Interest Rates, ‘Taxes’ and U.S. Dollar Coming

The economy is now so manipulated by politicians, big bankers, and special-interest groups that making sense of the markets has become an almost impossible feat. Which is to say, it must push even harder on the levers of its printing presses, further setting the stage for the massive period of inflation we continue to see as inevitable… and for a stunning rise in interest rates. Words: 968

11. Gold Price Keeps Going Higher As U.S. Debt Keeps Increasing – Got Gold?

Will our National Debt be trillions higher than today in a few years? If you think the answer is yes, than buying physical gold today is a good idea. It’s that simple. Just look at the chart. Words: 140

12. Here’s Proof: Global Central Bankers are Driving Up the Price of Gold!

Check out this chart (via Ed Yardeni) that shows the price of gold relative to U.S. Treasury and U.S. agency securities held by the Federal Reserve and other central banks – a VERY interesting correlation to say the least. Words: 260

In light of the unfolding global sovereign debt fiasco that has turned out to be less of a waterfall and more of an avalanche [than anticipated I present below a description of the 5 stages of collapse and discuss our preparedness. If you haven't read it yet, perhaps you should.] It has been read by 70,000+ people so far – and is still being read by an average of 1,500 people each month – on my site alone.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

and applied it quite successfully to various forms of catastrophic personal loss, such as death of a loved one, sudden end to one’s career, and so forth.

Applying the Kübler-Ross Model to Economic Collapse

Several thinkers, notably James Howard Kunstler and, more recently John Michael Greer, have pointed out that the Kübler-Ross model is also quite terrifyingly accurate in reflecting the process by which society as a whole (or at least the informed and thinking parts of it) is reconciling itself to the inevitability of a discontinuous future, with our institutions and life support systems undermined by a combination of:

• resource depletion,
• catastrophic climate change and
• political impotence.

So far, [however,] little has been said specifically about the finer structure of these discontinuities. Instead, there is to be found a continuum of subjective judgments, ranging from “a severe and prolonged recession” (the prediction we most often read in the financial press), to Kunstler’s “Long Emergency,” to the ever-popular “Collapse of Western Civilization,” painted with an ever-wider brush-stroke.

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For those of us who have already gone through all of the emotional stages of reconciling ourselves to the prospect of social and economic upheaval, it might be helpful to have a more precise terminology that goes beyond such emotionally charged phrases.

Defining a taxonomy of collapses might prove to be more than just an intellectual exercise: based on our abilities and circumstances, some of us may be able to specifically plan for a certain stage of collapse as a temporary, or even permanent, stopping point. Even if society at the current stage of socioeconomic complexity will no longer be possible, and even if, as Tainter points in his “Collapse of Complex Societies,” there are circumstances in which collapse happens to be the correct adaptive response, it need not automatically cause a population crash, with the survivors disbanding into solitary, feral humans dispersed in the wilderness and subsisting miserably. Collapse can be conceived of as an orderly, organized retreat rather than a rout.

The collapse of the Soviet Union, for example, [did not deprive the population of] food, housing, medicine, or any of the other survival necessities. Many institutions, including the military, public utilities, and public transportation, continued to function throughout [the decline. Even though] there was much social dislocation and suffering, society as a whole did not collapse [and this] allowed the Soviet population to inadvertently achieve a greater level of collapse-preparedness than is currently possible in the United States…

Having given a lot of thought to both the differences and the similarities between the two superpowers – the one that has collapsed already, and the one that is collapsing as I write this – I feel ready to attempt a bold conjecture, and define five stages of collapse, to serve as mental milestones as we gauge our own collapse-preparedness and see what can be done to improve it.

Rather than tying each phase [of collapse] to a particular emotion, as in the Kübler-Ross model, the proposed taxonomy ties each of the five collapse stages to the breaching of a specific level of trust, or faith, in the status quo. Although each stage causes physical, observable changes in the environment, these can be gradual…

The 5 Stages of Collapse

Stage 1: Financial collapse. Faith in “business as usual” is lost. The future is no longer assumed [to] resemble the past in any way that allows risk to be assessed and financial assets to be guaranteed. Financial institutions become insolvent; savings are wiped out, and access to capital is lost.

Stage 2: Commercial collapse. Faith that “the market shall provide” is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail chains break down, and widespread shortages of survival necessities become the norm.

Stage 3: Political collapse. Faith that “the government will take care of you” is lost. As official attempts to mitigate widespread loss of access to commercial sources of survival necessities fail to make a difference, the political establishment loses legitimacy and relevance.

Stage 4: Social collapse. Faith that “your people will take care of you” is lost, as local social institutions, be they charities or other groups that rush in to fill the power vacuum run out of resources or fail through internal conflict.

Stage 5: Cultural collapse. Faith in the goodness of humanity is lost. People lose their capacity for “kindness, generosity, consideration, affection, honesty, hospitality, compassion, charity” (Turnbull, The Mountain People). Families disband and compete as individuals for scarce resources. The new motto becomes “May you die today so that I die tomorrow” (Solzhenitsyn, The Gulag Archipelago). There may even be some cannibalism.

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Although many people imagine collapse to be a sort of elevator that goes to the sub-basement (our Stage 5) no matter which button you push, no such automatic mechanism can be discerned. Rather, driving us all to Stage 5 will require that a concerted effort be made at each of the intervening stages. That all the players seem poised to make just such an effort may give this collapse the form a classical tragedy – a conscious but inexorable march to perdition…Let us sketch out this process.

Stage 1 (Financial) Collapse Scenarios

Stage 1 collapse, as we are are currently observing it, consists of two parts:

1. a part of the general population is forced to move, no longer able to afford the house they bought based on inflated assessments, forged income numbers, and foolish expectations of endless asset inflation. Since, technically, they should never have been allowed to buy these houses, and were only able to do so because of financial and political malfeasance, this is actually a healthy development.
2. men in expensive suits tossing bundles of suddenly worthless paper up in the air, ripping out their remaining hair, and (some of us might uncharitably hope) setting themselves on fire on the steps of the Federal Reserve. They, to express it in their own vernacular, “fucked up,” and so this is also just as it should be.

The government response to this could be to offer some helpful homilies about “the wages of sin” and to open a few soup kitchens and flop houses in a variety of locations including Wall Street. The message would be: “You former debt addicts and gamblers, as you say, ‘fucked up,’ and so this will really hurt for a long time. We will never let you anywhere near big money again. Get yourselves over to the soup kitchen, and bring your own bowl, because we don’t do dishes.” This would result in a stable Stage 1 collapse – the Second Great Depression.

However, this is unlikely, because in the U.S. the government happens to be debt addict and gambler number one. As individuals, we may have been as virtuous as we wished, but the government will have still run up exorbitant debts on our behalf. Every level of government, from local municipalities and authorities, which need the financial markets to finance their public works and public services, to the federal government, which relies on foreign investment to finance its endless wars, is addicted to public debt. They know they cannot stop borrowing, and so they will do anything they can to keep the game going for as long as possible.

About the only thing the government currently seems…fit to do is:

• extend further credit to those in trouble,
• set interest rates at far below inflation,
• accept worthless bits of paper as collateral and
• pump money into insolvent financial institutions.

This has the effect of diluting the dollar, further undermining its value, and will, in due course, lead to hyperinflation, which is bad enough in any economy, but is especially serious for one dominated by imports. As imports dry up and the associated parts of the economy shut down, we pass Stage 2: Commercial Collapse.

Stage 2 (Commercial) Collapse Scenarios

As businesses shut down, storefronts are boarded up and the population is left largely penniless and dependent on FEMA and charity for survival, the government may consider what to do next. It could, for example:

• repatriate all foreign troops and set them to work on public works projects designed to directly help the population.
• promote local economic self-sufficiency, by establishing community-supported agriculture programs, erecting renewable energy systems, and organizing and training local self-defence forces to maintain law and order.
• order the Army Corps of Engineers to bulldoze buildings erected on former farmland around city centers, return the land to cultivation, and to construct high-density solar-heated housing in urban centers to resettle those who are displaced.
• reduce homelessness by imposing a steep tax on vacant residential properties and funneling the proceeds into rent subsidies for the indigent.

With plenty of luck, such measures may be able to reverse the trend, eventually providing for a restoration of pre-Stage 2 conditions.

This may or may not be a good plan, but in any case it is rather unrealistic, because the United States, being so deeply in debt, will be forced to accede to the wishes of its foreign creditors, who own a lot of national assets (land, buildings, and businesses) and who would rather see a dependent American population slaving away working off their debt than a self-sufficient one, conveniently forgetting that they have mortgaged their children’s futures to pay for military fiascos, big houses, big cars, and flat-screen television sets. 

A much more likely scenario, however, is that the federal government (knowing who butters their bread) will remain subservient to foreign financial interests and:

• impose austerity conditions,
• maintain law and order through draconian means, and
• aide in the construction of foreign-owned factory towns and plantations.

As people start to think that having a government may not be such a good idea, conditions become ripe for Stage 3.

Stage 3 (Political) Collapse Scenarios

After a significant amount of bloodletting, much of the country becomes a no-go zone for the remaining authorities. Foreign creditors decide that their debts might not be repaid after all, cut their losses and depart in haste. The rest of the world decides to act as if there is no such place as The United States – because “nobody goes there any more”…

Stage 3 collapse can sometimes be avoided by the timely introduction of international peacekeepers and through the efforts of international humanitarian NGOs. In the aftermath of a Stage 2 collapse, domestic authorities are highly unlikely to have either the resources or the legitimacy, or even the will, to arrest the collapse dynamic and reconstitute themselves in a way that the population would accept.

As stage 3 collapse runs its course, the power vacuum left by the now defunct federal, state and local government is filled by a variety of new power structures. Remnants of former law enforcement and military, urban gangs, ethnic mafias, religious cults and wealthy property owners all attempt to build their little empires on the ruins of the big one, fighting each other over territory and access to resources. This is the age of Big Men: charismatic leaders, rabble-rousers, ruthless Macchiavelian princes and war lords. In the luckier places, they find it to their common advantage to pool their resources and amalgamate into some sort of legitimate local government, while in the rest their jostling for power leads to a spiral of conflict and open war.

Stage 4 (Social) Collapse Scenarios

Stage 4 collapse occurs when society becomes so disordered and impoverished that it can no longer support the Big Men, who become smaller and smaller, and eventually fade from view. Society fragments into extended families and small tribes of a dozen or so families, who find it advantageous to band together for mutual support and defense. This is the form of society that has existed over some 98.5% of humanity’s existence as a biological species, and can be said to be the bedrock of human existence. Humans can exist at this level of organization for thousands, perhaps millions of years. Most mammalian species go extinct after just a few million years, but, for all we know, Homo Sapiens still have a million or two left.

Stage 5 (Cultural) Collapse Scenarios

If pre-collapse society is too atomized, alienated and individualistic to form cohesive extended families and tribes, or if its physical environment becomes so disordered and impoverished that hunger and starvation become widespread, then Stage 5 collapse becomes likely. At this stage, a simpler biological imperative takes over, to preserve the life of the breeding couples. Families disband, the old are abandoned to their own devices, and children are only cared for up to age 3. All social unity is destroyed, and even the couples may disband for a time, preferring to forage on their own and refusing to share food. This is the state of society described by the anthropologist Colin Turnbull in his book The Mountain People. If society prior to Stage 5 collapse can be said to be the historical norm for humans, Stage 5 collapse brings humanity to the verge of physical extinction.

Conclusion

As we can easily imagine, the default is cascaded failure: each stage of collapse can easily lead to the next, perhaps even overlapping it. In Russia, the process was arrested just past Stage 3: there was considerable trouble with ethnic mafias and even some warlordism, but government authority won out in the end. In my other writings, I go into a lot of detail in describing the exact conditions that inadvertently made Russian society relatively collapse-proof. Here, I will simply say that these ingredients are not currently present in the United States.

(In light of the unfolding global sovereign debt fiasco, I have issued an update [which I urge you to read. In it I come to the conclusion that, after] almost four lost years of both government and finance betting on a future that cannot exist, doubling down every time they lose again, the Five Stages of Collapse was nothing but a nice theory.

The [actual] effect, I think, will be to compress financial and political collapse into a single chaotic episode. Commercial collapse will not be far behind, because global commerce is dependent on global finance, and once international credit locks up the tankers and the container ships won’t sail. Shortly thereafter it will be lights out.)

*http://cluborlov.blogspot.com/2008/02/five-stages-of-collapse.html

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The recent super-dovish FOMC statement of an extended period of low interest rates and possibly a full blown QE 3 replacing the current “light” version…raises inflation risks and so pressures the USD….[That being said, I p

So says Cliff Wachtel (www.globalmarkets.anyoption.com) edited excerpts from his original article*.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Wachtel goes on to say, in part:

GOOD Factors Affecting the USD

1. The Dovish Fed Policy

[The above mentioned] dovish Fed policy may actually aid the USD’s prospects especially if the economy performs relatively well and so reduces the liklihood of new stimilus coming. Indeed, the White House will be doing all it can to help the U.S. economy over the coming year. Moreover, as we note below, most other major central banks are also in easing mode so the USD may not look any worse than its fellow majors from this perspective.

Also, dovish Fed policy may not be as damaging to USD prices as it has been in prior years, because in 2012 the Fed is no longer alone among the major banks in attempting to expand the monetary supply. The ECB, PBOC, BoE, RBA and BoC among others have all followed the Fed towards more dovish policies.

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In other words, the continued dovishness of the Fed may not harm the USD’s relative position vs. the other major currencies at all.

2. Global Stagnation in Growth

If, as predicted by many, US growth is relatively good (though lower than previously hoped) compared to that of the rest of the developed world, then the coming year could be bullish for the USD.

Economic downturns favor safe haven currencies like the USD. This downturn may be particularly favorable for the greenback because the central banks behind the other two traditional safety currencies, the JPY and CHF, have become more aggressive in devaluing their currencies. This is especially true for the CHF, which over the past year went from being the most stable safe haven to being the most heavily managed one. The SNB remains committed to keeping the CHF down relative to the EUR.

Carry trading is when you sell of low yielding currencies to fund purchases of higher yielding currencies, and profit on the difference. For example, you buy the AUD/JPY, you buy the AUD which yields 4.5%/year, and sell or borrow the JPY pay out its 0.10% rate, profit on the rate differential as long as you hold the position. This works well as long as the JPY or other funding currency doesn’t gain value vs. the AUD or other currency that you bought. If it does, your interest rates gains can be wiped out fast.

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Carry trades work best in times of rising growth and interest rates that favor the higher yielding risk currencies, not during times of recession when safe haven currencies like the JPY or USD tend to appreciate and thus make carry trades unprofitable. In other words, times of stagnation mean reduced carry trade, and that’s another reason for increased demand for safety currencies like the USD.

3. The U.S. Election Year

President Obama’s approval ratings at the end of 2011 are well below what’s needed to win re-election and, as such, the quality of both the US economy’s performance and his opponent’s campaign will determine whether he can overcome his current standing.

We expect President Obama will, like any politician up for re-election, attempt as much stimulus as possible in order to have the voters feeling as optimistic as possible as they go to vote in November 2012. For this reason, stocks and other risk assets usually perform well in election years: 2008 was different because of the financial crisis, but over the past five decades, stocks have declined in only four out of the past 17 election years. Using the deutschmark as a rough proxy for the EUR, we have data on the EUR/USD from the 1970s to now, which covers nine election years. The currency pair weakened eight out of the nine years by an average of 6%. In other words, the dollar tends to perform well in election years. That alone is important for traders to keep in 2012.

 4. The Bleak Outlook for the EU

The ongoing crisis in the EU continues to keep markets nervous and thus ready to flee into the relative safety of the USD. It has better long term economic fundamentals than those of the JPY, and the CHF is now linked to the EUR. Together these factors make the USD the most attractive safe haven currency. Moreover, the EU crisis threatens to drive the EUR down further. As I’ve often noted in prior articles, because the USD and EUR are the most widely held currencies, they tend to push each other in opposite directions so further declines in the EUR are bullish for the USD.

BAD Factors Affecting the USD

Here are the factors that could pull the USD lower.

1. EU Crisis Stabilizes or Improves

Nothing in the past years suggests that it will be solved, but the EU leadership may yet again manage do muddle through. As noted above, a rising EUR virtually insures a falling USD. We don’t think this scenario is likely but it’s certainly possible.

2. US Politics Remains Unchanged

Even without the pressure to hand out goodies to voters that comes in an election year, Congress was been unable to make serious progress in reducing its deficit during 2011. Thus we risk further credit downgrades on the Federal, as well as state and local levels.

3. Fed Goes All In for QE 3

If the Fed really opens up the money taps relative to its fellow central banks, then that would be a double negative for the USD:

• It would drive down USD demand from the added future inflation risk.
• In addition, QE programs are considered good for risk assets like stocks and risk currencies, and bearish for safe haven currencies like the USD.

UGLY Factors Affecting the USD

The most likely ugly scenario is a wave of defaults in the EU. While many claim that a Greek default is priced in, we don’t buy that, as we apply the “no such thing as one cockroach” theory. By itself a Greek default isn’t a disaster. The problem is that it will drive borrowing costs for the other GIIPS out of range risks starting an avalanche of sovereign and/or bank defaults from the banks holding those bonds.

In that kind of panic scenario, the USD should do very well, at least in the short term. Beyond that there are too many factors to make a useful prediction. On one hand the USD is a safe haven asset that should benefit in crisis conditions. On the other hand that same crisis is likely to reach the US directly or indirectly and ultimately undermine the US economy and with It the USD.

A less likely but still quite possible black swan event is an escalation in tensions with Iran that could send energy prices soaring. In all but the scariest scenarios that’s likely to be bearish for the USD as energy prices spike. However that’s a separate topic for another article.

 Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Snyder goes on to say, in part:

If the government suddenly started spending only the money that it actually brought in every year, our economy would be doomed and all of this “false prosperity” would rapidly disappear… [but conversely,] if the U.S. government continues to rack up debt at this pace we are doomed. In fact, every dollar that gets borrowed makes our eventual collapse ever worse. We are heading down the exact same road that Greece has gone. Eventually the rest of the world is not going to lend us gigantic mountains of super cheap money anymore. When the flow of cheap money stops, it [will] be extremely painful…If we had addressed these problems as a nation a decade or two ago, perhaps we could have found a solution but now there is no way out under our current financial system and a devastating economic collapse is on the horizon no matter what we do.

Look at Greece. They were forced by the EU and the IMF to dramatically reduce government spending…[and] John Mauldin described the nightmarish effect that this had on the country…

As Greece began to shake and bake its way to “austerity,” the very act of cutting deficits pushed the country into recession, which lowered tax revenues and increased expenses, putting the elusive goal of a balanced budget even further off…Spain’s “draconian” cuts have [had much the same effects]…

For country after country, this is the Endgame. It is the end of the Debt Supercycle. Debt has grown to the size that it cannot be sustained. The market will not lend any more money on terms that can be afforded, and any efforts to cut spending and raise taxes will result in an even worse economy, in various degrees of recession, with falling revenues and rising costs.

The above is what happens when a country that has been spending far beyond its means is forced to dramatically cut back.

Those that are convinced that balancing the federal budget in the United States will be relatively painless should take a close look at what is happening in Greece. The Greek economy has been plunged into a 21st century “Great Depression”:

• 20% of all retail stores have already shut down,
• the unemployment rate for those under the age of 24 is 39% and
• 33% of the entire nation is living in poverty.

This is only just the beginning for Greece. Things are going to get even worse.

Unfortunately, many believe that the United States is destined to experience far worse pain than Greece is currently experiencing. Peter Schiff, for example, insists that the United States is in even worse financial shape than Europe at this point. Just check out this video….

Anyone that attempts to downplay the U.S. debt problem is making a serious mistake. Yes, we are still able to borrow trillions of dollars for next to nothing, but that is going to come to an end.

Who in the world is currently reading this article along with you? Click here

Remember all of those “suckers” that signed up for mortgages at “teaser rates” that later got jacked up dramatically? Well, when the rates went up many of them ended up losing everything [and] we have gotten ourselves into the exact same kind of a position. All of this cheap money has enabled us to live very nicely for now, but when the cheap money ends the nightmare will begin.

Right now, our debt is growing much, much faster than our economy is. Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that period… but it is not just the federal government that has been living a fantasy.

The chart posted below shows the growth of total debt in America over the past several decades. Consumers, businesses and government officials have been on a debt binge that is absolutely unprecedented [but] the scary thing is that even with all of this borrowed money, our economy is still in the dumps so what in the world is it going to look like when the debt bubble totally bursts?

Even with all of this “borrowed prosperity”, anger at the government is rapidly growing. A recent Gallup poll found that “satisfaction with government” in the United States is now at an all-time record low of 29% so how angry will the American people be when all of this “borrowed prosperity” disappears?

When this whole thing comes tumbling down, a lot of people are going to blame our problems on “capitalism”. In fact, it is already happening. Just check out what the founder of the World Economic Forum, Klaus Schwab, is saying:

• We have a general morality gap.
• We are over-leveraged,
• we have neglected to invest in the future,
• we have undermined social coherence, and
• we are in danger of completely losing the confidence of future generations.
• We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual.
• Capitalism in its current form, has no place in the world around us.

Capitalism is not the problem, however. Capitalism has produced the greatest eras of prosperity that the world has ever seen. No, the real problem is our debt-based financial system that is managed and run by the central banks of the world.

Debt-based central banking is not capitalism but, unfortunately, way too many people equate the two. [The truth of the matter is that,] theoretically, you could have capitalism without any debt whatsoever but what we have today is a financial system that has debt as the very foundation and such a system is inevitably going to fail someday.

As I have written about so many times before, the Federal Reserve is at the very heart of our economic problems here in the United States [because it] was designed to be a perpetual debt machine – and it has performed that task very well. The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created.

Even though things [may] seem somewhat “stable” for the moment, there are all kinds of reasons to be concerned about the viability of our economy and our financial system in the years ahead… [In fact,] I believe a massive economic storm is coming [so] don’t let this false prosperity and this “calm before the storm” fool you.

We are living in the greatest debt bubble the world has ever seen, and no matter how it plays out there is going to be a massive amount of pain. You might want to get yourself and your family prepared for that.

*http://theeconomiccollapseblog.com/archives/if-the-u-s-government-keeps-spending-money-like-this-we-are-doomed-and-if-the-u-s-government-stops-spending-money-like-this-we-are-doomed

Why spend time surfing the internet looking for informative and well-written articles on the health of the economies of the U.S., Canada and Europe; the development and implications of the world’s financial crisis and the various investment opportunities that present themselves related to commodities (gold and silver in particular) and the stock market when we do it for you. We assess hundreds of articles every day, identify the best and then post edited excerpts of them to provide you with a fast and easy read.

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Related Articles:

1. Economic System a Legal Ponzi Scheme on the Verge of Collapse!

Countries around the world, particularly in the West, are hopelessly in the red, with debt rising every day. Even worse, politicians seem paralyzed, unable — or unwilling — to do anything about it. It is a global disaster that threatens the immediate future… [Let me explain.] Words: 1132

2. 2012: More Money-printing Leading to Accelerating Inflation, Rising Interest Rates & Then U.S. Debt Crisis! Got Gold?

Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012…followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates…[Let me show you the evidence.] Words: 660

3. Alf Field’s 7 “D’s” of the Developing Disaster Revisited

When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival…[Let me explain this further by reviewing the 7 major problems facing the U.S. (and thus the world) and how they all will lead to problem #7 - devolution.] Words: 1520

4. Alf Field: America’s Current Account Deficit Causing World’s Financial Crisis! Here’s Why

The onset of the world’s worst financial crisis in many decades is one of the most important factors (if not the most important factor) currently influencing investment decisions. The crisis has created chaos and confusion. Not many people understand how the world has arrived at this unfortunate situation. This report endeavours to identify the underlying causes of the crisis and explains why the USA current account deficit has been the main destabilising force in world finance. Words: 3806

5. Niall Ferguson: U.S. Playing “Russian Roulette” Assuming Interest Rates Will Remain Low

Countering Krugman’s argument that today’s low interest rates show that no one is worried about lending money to us and, therefore, that we should borrow and spend our way to prosperity, Ferguson argues that today’s interest rates are irrelevant. When countries get into trouble, he says, they get into trouble quickly – the way Greece and …

6. National Debt Burden per Capita-to-Income Index at 50 Year High – and Growing!

Wars and depressions largely characterize the periods of time where there have been significant run-ups in the level of the U.S. National Debt Burden per Capita [i.e. the U.S. National Debt Burden per Capita-to-income Index], with the debt taken on to support the costs of the U.S. Civil War and World War II being the most significant. Today… it is perhaps most comparable to the Great Depression. [Take a look.] Words: 326

7. These 10 Charts Illustrate America’s Disastrous Fiscal Condition – Take a Look (and Weep)!

By now nobody should have any doubts as to just how disturbing America’s fiscal debacle is. For those naive and innocent few who still think there is a Hollywood ending with a pot of gold awaiting everyone at the end of the rainbow, we present the following “10 essential fiscal charts” from the Pew Policy Institute.

8. Brace for Impact: U.S. About to Go Off a Financial Cliff!

The kind of impact [our economy is] going to have will not be like flying into the side of a mountain. It will be the kind of crash that skids over land, clipping trees and buildings until the plane ends up wingless in a smoldering heap. I just hope the fuel tanks don’t ignite when the long rough ride is over. [Let me explain.] Words: 832

9. Another Economic Collapse and Great Depression are Coming! Here’s Why

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

The Fed is completely convinced that without an inexorably rising rate of inflation there won’t be enough money made available to finance our rapidly increasing national debt. [As such, they have just] disclosed that they now have an inflation goal of at least two percent . As a result, we are stuck with a perpetually decreasing standard of living, a middle class that is on the endangered species list and provided the holders of U.S. dollars a target rate for its destruction…[Indeed,] Bernanke’s actions are so destructive to savers that I’m sure if he were a broker, he would be telling his clients to buy more gold.

So says Michael Pento (www.pentoport.com/commentary.php) in edited excerpts from an interview he had recently with King World News entitled “Gold Spikes as the Fed Provides Target for Dollar Destruction” where it can be read in its entirety.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) edited ([ ]) and abridged (…) the opening paragraph for the sake of clarity and brevity. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Related Postings:

1. Why More QE is Coming and What That Means for the Future Price of Gold

Most traders and some economists believe the Fed will step in with another round of Quantitative Easing (QE3) in the first half of 2012. This will pump up the stock market, particularly bank stocks, giving the impression that the US economy can’t be that bad, after all, [but in the process] debase the dollar and reduce purchasing power. [This, in turn, will result in higher]…inflation causing prudent investors to buy more gold. [Let me explain further what I see transpiring this quarter and why.] Words: 718

2. 2012: More Money-printing Leading to Accelerating Inflation, Rising Interest Rates & Then U.S. Debt Crisis! Got Gold?

Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012…followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates…[Let me show you the evidence.] Words: 660

3. These Indicators Say Inflation to Go to 4% Soon – and 6% by 2014

In response to the financial crisis of 2008, the Fed injected unprecedented levels of liquidity into the banking system. While inflation has been modest to date, an analysis of similar periods in history shows that it typically takes more than two years for the impact on consumer prices to be seen. Consequently, we are now at a pivotal point in the current cycle as Fed stimulus began more than two years ago. [Let me explain further.] Words: 2755

4. Will This Be The USA in 2012?

The economic condition of the country continues to decline toward its rendezvous with an, as yet, unknowable catastrophe. Here is… a look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight. Words: 1550

5. Coming Inflation to Make U.S. Dollar Not Only Worth Less – But Worthless!

The Federal Reserve is now trying to figure out ways to boost inflation expectations… so that Americans are encouraged to spend more before their money is worth less. Unfortunately, not only will their money soon be worth less, it will literally become worthless! Words: 904

6. News Flash! The Fed Has Declared That It MUST Create Inflation! Got Gold?

In… September’s Federal Open Market Committee minutes, the Fed officially announced that … “Unless … underlying inflation moved back toward a level consistent with the Committee’s mandate, they would consider it appropriate to take action soon” and take “… possible steps to affect inflation expectations.” That’s Fed-speak for a MANDATE TO CREATE INFLATION! Words: 694

7. The Fed MUST Inflate Away Debt or Default So MAJOR Inflation IS Coming!

If our assessment is correct, over the coming years, stocks, precious metals, commodities and real-estate will appreciate in value versus paper currencies. Furthermore, on a relative basis, we expect precious metals and commodities to outperform all other asset-classes. Conversely, we anticipate that cash and fixed income instruments will probably turn out to be the worst assets to own over the next decade. Words: 869

8. Major Changes in Inflation, Interest Rates, ‘Taxes’ and U.S. Dollar Coming

The economy is now so manipulated by politicians, big bankers, and special-interest groups that making sense of the markets has become an almost impossible feat. Which is to say, it must push even harder on the levers of its printing presses, further setting the stage for the massive period of inflation we continue to see as inevitable… and for a stunning rise in interest rates. Words: 968

9. Gold Price Keeps Going Higher As U.S. Debt Keeps Increasing – Got Gold?

Will our National Debt be trillions higher than today in a few years? If you think the answer is yes, than buying physical gold today is a good idea. It’s that simple. Just look at the chart. Words: 140

10. Here’s Proof: Global Central Bankers are Driving Up the Price of Gold!

Check out this chart (via Ed Yardeni) that shows the price of gold relative to U.S. Treasury and U.S. agency securities held by the Federal Reserve and other central banks – a VERY interesting correlation to say the least. Words: 260

11. Why are Central Banks Buying Gold?

Central banks have pulled 635 tonnes of gold – the largest withdrawal in more than a decade – from the Bank for International Settlements in the past year and, as such, begs the question: If central banks [supposedly] believe in the value of paper money and their ability to create wealth by printing it then why are they loading up on Gold? The answer is simple: they see the writing on the wall [and that begs an even more important question: Shouldn't you?]…Words: 600

12. The Future Price of Gold and the 2% Factor

It is my contention that the price of gold rallies whenever the U.S. dollar’s real short-term interest rate is below 2%, falls whenever the real short rate is above 2%, and holds steady at the equilibrium rate of 2%. Furthermore, for every one percentage point real rates differ from 2%, gold moves by eight times that amount per year. So if the real rates are at 1%, gold will move up at an 8% annualized rate. If real rates are at 0%, then gold will move up at a 16% rate (that’s been about the story for the past decade). Conversely, if the real rate jumps to 3%, then gold will drop at an 8% rate. [Let me explain.] Words: 982

Why spend time surfing the internet looking for informative and well-written articles on the health of the economies of the U.S., Canada and Europe; the development and implications of the world’s financial crisis and the various investment opportunities that present themselves related to commodities (gold and silver in particular) and the stock market when we do it for you. We assess hundreds of articles every day, identify the best and then post edited excerpts of them to provide you with a fast and easy read.

Sign-up for Automatic Receipt of Articles in your Inbox or via FACEBOOK | and/or TWITTER so as not to miss any of the best financial articles on the internet edited for clarity and brevity to ensure you a fast an easy read.

Lorimer Wilson is editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). The views and conclusions of the email below are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

The U.S. economic and systemic-solvency crises of the last five years continue to deteriorate yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression. The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment.

So says John Williams (www.shadowstats.com) in a recent interview: Read More @ KingWorldNews.com and in his previous articles:

• “A Hyperinflationary Great Depression Is Coming to America by 2014! Here’s Why“
• “Williams: U.S. Can Not Avoid Coming Financial Armageddon” and
• “Williams: Expect Hyperinflation Within the Next 5 Years“
• as posted on www.munKNEE.com.

Related Articles:

1. A Hyperinflationary Great Depression Is Coming to America by 2014! Here’s Why

The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Outside timing on the hyperinflation remains 2014, but there is strong risk of a currency catastrophe beginning to unfold in the months ahead…moving into a full blown hyperinflation [in a few] months to a year… depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve. [Let me go into more detail.] Words: 2726

2. Williams: U.S. Can Not Avoid Coming Financial Armageddon

The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression… [at which time] a $100 bill in the United States will become worth more as functional toilet paper/tissue than as currency. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, and gross mismanagement. The article is long but well worth the read. Words: 3565

3. Williams: Expect Hyperinflation Within the Next 5 Years

Pushing the big problems into the future appears to have been the working strategy for both the Fed and recent Administrations, yet the U.S. dollar and the budget deficit do matter, and the future is at hand. The day of ultimate financial reckoning has arrived, and it is playing out. Words: 1096

4. Hyperinflation to Occur in U.S. as Early as 2013! Here’s Why

In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation in America is between the years 2013 and 2015 [based on 12 warning signs that are on the horizon.] Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately. Words: 2065

5. New Boom-bust Cycle Risks Hyperinflationary Depression and Much Higher Gold Price – Here’s Why

It is my view that the world has entered a new boom-bust cycle driven by oil prices. Oscillating oil prices – as opposed to credit cycles – will repeatedly stimulate and crash the highly levered global economy. Governments have not recognized this new cycle, and as part of a fruitless effort to retain control over deteriorating real growth and rising unemployment central banks will print more and more money, risking a hyperinflationary depression (stagflation at best). [As such,] the only respite for many investors is gold. [Let me explain.] Words: 925

6. 2012: More Money-printing Leading to Accelerating Inflation, Rising Interest Rates & Then U.S. Debt Crisis! Got Gold?

Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012…followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates…[Let me show you the evidence.] Words: 660

7. True Money Supply Is Already Hyperinflationary! What’s Next?

Economists are telling central banks to accelerate monetary growth even faster…to avoid a bank balance sheet implosion with all the deflationary consequences that implies. [As such,] the prospects for 2012, and thereafter, are for Total Money Supply to continue its hyperbolic trend – and when such a trend becomes established it becomes almost impossible to stop because the whole debt-based economy and the banking system would collapse. [Let me explain further.] Words: 550

8. How Likely Will Hyperinflation Occur in the U.S.?

There is a difference between inflation and hyperinflation…and there is no gradual path from one to the other. To wind up with true hyperinflation, some very bad things have to happen. The government has to completely lose control… the populace has to completely lose faith in the system… or both at the same time. [Are we there yet? Let's take a look.] Words: 1188

9. 21 Countries Have Experienced Hyperinflation In Last 25 Years – Is the U.S. Next!

[Hyperinflation is not an unusual phenomenon. 32 countries have experienced hyperinflation over the last 100 years of which no less than 21 have experienced it in the past 25 years and 4 in the past 10 years. The United States is one of the few countries to have experienced two currency collapses during its history (1812-1814 and 1861-1865). Is it about to happen again?] Words: 1450

10. The Great American Apocalypse 2011-2012: The Video

Unlike the credit crisis that triggered the last major stock market collapse … the “Fiscal Armageddon” that could “dwarf 2008″ will be intensely personal. Millions of Americans will face the specter of lost incomes … lost savings … lost buying power … lost homes … lost liberty. View the video for all the details.

11. Will This Be The USA in 2012?

The economic condition of the country continues to decline toward its rendezvous with an, as yet, unknowable catastrophe. Here is… a look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight. Words: 1550

12. Coming Inflation to Make U.S. Dollar Not Only Worth Less – But Worthless!

The Federal Reserve is now trying to figure out ways to boost inflation expectations… so that Americans are encouraged to spend more before their money is worth less. Unfortunately, not only will their money soon be worth less, it will literally become worthless! Words: 904

13. Washington Politicians Will Cause Rampant Inflation With Their In-Action and Mis-Action!

The National Inflation Association (NIA) believes it is very unlikely that our representatives in Washington will have the political backbone and courage to implement any of the National Commission on Fiscal Responsibility and Reform’s proposed cuts in domestic and defense expenditures and increases in tax revenues. [Instead, as the NIA sees it,] the U.S. is on a path towards exploding budget deficits in the years ahead that could cause an outbreak of hyperinflation by the end of calendar year 2015. Words: 887

14. Remedies to Fiscal Gap Guarantee Hyperinflation!

Boston University economist, Prof. Kotlikoff, maintains that the U.S. cannot end its fiscal crisis by doubling taxes, as the International Monetary Fund suggests, or further stimulus spending [as Bernanke is doing] because it will simply increase the debt. [Instead he has some radical proposals of his own.] Words: 704

15. The Fed MUST Inflate Away Debt or Default So MAJOR Inflation IS Coming!

If our assessment is correct, over the coming years, stocks, precious metals, commodities and real-estate will appreciate in value versus paper currencies. Furthermore, on a relative basis, we expect precious metals and commodities to outperform all other asset-classes. Conversely, we anticipate that cash and fixed income instruments will probably turn out to be the worst assets to own over the next decade. Words: 869

16. Investors Should Prepare Now for Coming Inflationary Depression – Got Gold?

It is an old saying that the “road to hell is paved with good intentions”. Well, in recent years, that road has been changed to a super-highway! America was put on that super-highway a few years ago and right now we are traveling at break-neck speed toward the financial abyss. Words: 1132

17. What’s Coming: A Hyperinflationary or A Deflationary Depression?

While I believe that the US is heading towards a Weimar style hyperinflationary depression there are several developments that point to the possibility of another deflationary depression, similar to the 1930’s. Words: 858

18. Finally: A Clear Understanding of Hyperinflation, Money Demand & the “Crack-Up Boom”

Some people consider a rise in overall prices of 10 percent per month (which implies an annual rate of price increases of around 214 percent) as hyperinflation; others indentify hyperinflation as a monthly price rise of at least 20 percent (which implies an annual increase in prices of nearly 792 percent). Words: 1353

19. Coming Inflationary Depression Means Future Commodities Super-boom

Mladjenovic explains his contention that we are in for a inflationary depression and, as such, investors should put their money in those things that will benefit from both inflation and strong demand and supply and stay away from where there is a deflationary impact, such as real estate. Words: 825

Lots of iconic brands have filed for bankruptcy recently. Some blamed weak consumer demand, others pointed to rising commodity costs and pension demands. In any case, you can count on many more companies to follow suit. Here is a list of the 17 largest companies with the greatest probability of financial distress.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

They go on to say, in part:

1. Caesars Entertainment - the world’s largest casino entertainment company

 

Financial distress probability: 7.28% (calculation by GovernanceMetrics International); Total assets: $28.9 billion

2. Clearwire (CLWR) – a wireless internet service provider

 

Financial distress probability: 9.54%; Total assets: $8.8 billion

3. McClatchy (MNI) - the third-largest newspaper company in the U.S.

 

Financial distress probability: 10.16%; Total assets: $3.0 billion

4. AK Steel Holding (AKS:US) – formerly Armco

 

Financial distress probability: 10.98%; Total assets: $4.58 billion

5. Republic Airway Holdings (RJET) -  an Indiana company that owns Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America

 

Financial distress probability: 11.12%; Total assets: $4.2 billion

6. Tennessee Valley Authority – electricity provider to nine million people in the southeast

 

Financial distress probability: 11.82%; Total assets: $46.39 billion

7. Office Depot (ODP) – a global supplier of office products and services

 

Financial distress probability: 11.90%; Total assets: $4.2 billion

 

8. Barnes & Noble (BKS) – book retailer

 

Financial distress probability: 12.05%; Total assets: $4.1 billion

9. Standard Pacific (SPF) – a builder of single-family homes

 

Financial distress probability: 13.35%; Total assets: $2.2 billion

10. Dynegy (DYN) – a producer/retailer of electric energy, capacity and ancillary services

 

Financial distress probability: 13.93%; Total assets: $11.1 billion

11. Talbots (TLB) – womens clothing and accessories retailer

 

Financial distress probability: 14.86%; Total assets: $0.7 billion

12. KB Home (KBH) – America’s fifth-largest homebuilder 

 

Financial distress probability: 15.52%; Total assets: $2.7 billion

13. United States Postal Service – mail/package delivery 

 

Financial distress probability: 17.30%; Total assets: $23.4 billion

14. Thomas Cook Group (TCG:LN) – travel agency

 

Financial distress probability: 17.94%; Total assets: $10.43 billion

15. Air France (AF:FP) - France’s national airline

 

Financial distress probability: 18.99%; Total assets: $37.1 billion

16. Imperial Sugar (IPSU) – processor and marketer of refined sugar

 

Financial distress probability: 20.37%; Total assets: $0.5 billion

17. Dendreon (DNDN) – a biotechnology company and developer/producer/distributor of prostate cancer vaccine Provenge

 

Financial distress probability: 30.62%; Market cap: $0.9 billion

*http://www.businessinsider.com/the-next-17-big-companies-that-are-at-risk-of-bankruptcy-2012-1?op=1#ixzz1klgbz1iz

Why spend time surfing the internet looking for informative and well-written articles on the health of the economies of the U.S., Canada and Europe; the development and implications of the world’s financial crisis and the various investment opportunities that present themselves related to commodities (gold and silver in particular) and the stock market when we do it for you. We assess hundreds of articles every day, identify the best and then post edited excerpts of them to provide you with a fast and easy read.

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The Baltic Dry Index is generally viewed as a leading indicator of global economic activity as dry bulk primarily consists of commodities such as building materials, coal, metallic ores and grain. My research, however, indicates that global manufacturing demand has very little to do with it but, rather, Chinese manufacturing demand – but not the actual level of manufacturing as measured by the CFLP Manufacturing PMI.

So says Prieur du Plessis (www.investmentpostcards.com) in edited excerpts from his original article* which is of such a nature that, as editor editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) I present a live hyperlink directly to the article rather than providing an edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

*http://www.investmentpostcards.com/2012/01/23/baltic-dry-index-%e2%80%93-sell-off-overdone/

Related Articles:

1. Abandon Ship! Baltic Dry Index on the Rocks of a European Recession

There has been an alarming development for the obscure, yet instructive Baltic Dry Index…[which] tracks the cost of shipping major raw materials (iron ore, coal, grain, cement, copper, sand and gravel, fertilizer and even plastic granules)…It is down 48.4% in the last month…[and] down 54.4% in the last three months. [Let me explain why and how to invest accordingly.] Words: 200

2. The Baltic Dry Index: Why You Should Use It and How to Do So

The Baltic Dry Index is, in my opinion, the best leading economic indicator to follow when the media is telling us the economy is looking great one week and then predicting a double dip recession the next. Let me explain. Words: 933

George Soros…is more concerned with surviving than staying rich…He doesn’t just mean it’s time to protect your assets. He means it’s time to stave off disaster. As he sees it, the world faces one of the most dangerous periods of modern history—a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether. [Perhaps] we should be, too, [but as] we have often explained, [such comments ar nothing more than] the fear-based promotions of the power elite to frighten the middle classes into giving up power and wealth to globalist institutions. Let us explain. 

So says an article* posted at www.TheDailybell.com that I encourage you to read.

*http://www.thedailybell.com/3535/Soros-Threatens-Blood-on-the-Streets

Related Articles:

1. Economic/Currency Collapse Could Bring Martial Law and Confiscation of Your High-priced Gold! Got Silver?

Do we really honest-to-God no-fingers-crossed cherry-on-top believe that the powers-that-be will simply allow us to mosey up to the cashiers cage and redeem or convert our Gold for whatever monetary unit reigns supreme or is created [should our current financial system and currencies collapse? As such,] IF there comes a time when the best move forward is to sell most of our Gold and switch to another asset class, one more likely to survive the transition intact, will we be able to see this as obvious and a no brainer? [Let me explain what could well happen and the effect such a development would have on all things Gold.] Words: 3037

2. 2012: Is This How U.S. Financial Crisis Will Unfold Later This Year?

As economic and political matters become more desperate in the U.S., so will what the government considers acceptable. If a debt default cannot be engineered via continuous inflation as the Fed’s current money-printing is attempting to do, it will occur via a direct repudiation of obligations or a quasi-surreptitious one such the hypothetical one I present in this article. Here is… a look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight[ - and your financial well-being too]. Words: 1365

3. Get Ready for Financial Crisis 2.0 in 2012 – It’s Inevitable! Here’s Why

This analyst sees the perfect storm of converging criteria almost perfectly timed and aligned with the 2012 election cycle. When the moment arrives, the financial earthquake will rapidly demolish the existing highly precarious financial system. Government will stand by helpless, unable to shield itself, much less its vulnerable citizens or private financial institutions from the tsunami of debt and currency destruction. 2012 is shaping up to be the blockbuster main event of the ongoing financial crisis. Massive amounts of new debt, vast quantities of additional digital dollars and the spark of higher interest rates will set off version 2.0 of the credit-driven financial implosion. Let me explain. Words: 1443

4. Warning Signs Suggest U.S. Headed for a Complete Societal Collapse!

There are now countless warning signs all around us on a daily basis that the U.S. is headed for a complete societal collapse. Words: 573

5. The Great American Apocalypse 2011-2012: The Video

The handwriting is on the wall: This great dollar disaster is only just beginning. Obama and Bernanke have no choice. Either they dramatically devalue the dollar over the next three years, or they go down in history as the first administration to default — to welch on the government’s debt obligations. Words: 1781

7. Alf Field’s 7 “D’s” of the Developing Disaster Revisited

9. Hyperinflation to Occur in U.S. as Early as 2013! Here’s Why

 

 

In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation in America is between the years 2013 and 2015 [based on 12 warning signs that are on the horizon.] Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately. Words: 2065