Consequences of Country’s Debt Complacency Could be Catastrophic
August 12, 2010 by Editor · Leave a Comment
Our leaders will eventually face an Armageddon unlike any since the Civil War unless they must either muster the courage — and the support of the people — to accept the pain and make the sacrifices of a lifetime … or face the downfall of America. Words: 1086
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Private Debt: the Major Problem – Deflation: the Painful Solution
July 3, 2010 by Editor · Leave a Comment
When velocity is low the nation essentially winds up in a “liquidity trap” which is a situation where monetary policy is unable to stimulate the economy either through lowering interest rates or increasing the money supply. This was the condition that Japan found itself enveloped in from 1989 to present. We expect the same problem in this country and hope (really hope) to be wrong. Words: 955
Will Sovereign Debt Tsunami Drown All the PIIIGS and Then the US and UK?
April 11, 2010 by Editor · Leave a Comment
With all the attention being focused on whether or not there will be a sustainable recovery in 2010, the potential for a wave of sovereign-debt crises following the wake of the global recession has just recently started to appear on people’s radar screens – and such a wave should not be surprising. Words: 2541
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Here’s the Best Way to Protect Against both Inflation AND Deflation
April 9, 2010 by Editor · Leave a Comment
There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142
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Massive Debt = Dollar Collapse = High Inflation = Likely Depression
A weaker dollar poses tremendous complications for Americans. For one, it makes imports more expensive, which is effectively inflation. Ultimately, this means a standard of living lower than what we have come to expect. If confidence in the dollar totally erodes, then things will really get ugly. Words: 1011
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Bond Market on Brink of Collapse
February 21, 2010 by Editor · Leave a Comment
Secretly, the Fed is in a panic to ward off a bond market collapse! They know that, sooner or later, they MUST send the message that they’re serious about cutting back on their mad money printing. The danger of course, is that foreign investors will get an entirely different message: that Washington’s efforts to fight the most severe recession since the Great Depression are waning. If that happens, you could see turmoil — not just in the bond market, but in every asset class imaginable. Words: 770
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