Economic Overviews

The debt crisis in the United States is unsustainable, and the debt crisis in Europe is unsustainable. As such, we are facing a global debt meltdown and are heading for an economic collapse. You aren't going to hear that truth from the media or from our politicians, however, because keeping people calm is much more of a priority to them than is telling the truth - and right now we are in the calm before the storm. Nobody knows exactly when the storm is going to strike (i.e. when the collapse is going to happen) - but it is definitely on the way -- and now even Goldman Sachs is admitting [that that is most likely the outcome of the present situation. Here is what they had to say recently in a "secret" document that has just now been made public.] Words: 1147

A good way to think about our country's economy is to think of the U.S. like a boxer. We were knocked flat on our back in 2008 and have since struggled to one knee but have never got back to our feet. [As such,] those conversations that imply we might be on the verge of falling down again are rather pointless...With this much slack in the economy, it’s unlikely that any economic downturn from here will be substantial. Does that mean I think the U.S. economy can’t contract from here? No, but I would be very surprised if we were to experience another blow similar to the 2008 recession where real GDP fell 5%. [Let me explain.] Words: 538

James Turk, Director of The GoldMoney Foundation, interviewed Jim Sinclair recently at the GATA conference in London about his successful gold price predictions, the U.S. debt problems, how to ride the second phase of the gold bull and the gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. Below is a heavily edited and paraphrased version of the interview to provide you with a fast and easy understanding of its contents. Words: 1318

Over the past two months stock markets have crashed around the world and gold prices have soared as global investors decided that the U.S. has lost its race against time. A new recession is upon us before we even half-closed the output gap left open from the last recession. It means even larger deficits and an even weaker dollar. The price of gold and Treasury bonds is telling us that a full-blown international bond and currency crisis is approaching. There is no international policy mechanism available to stop the panic short of re-opening the gold window that the U.S. closed unilaterally and “temporarily” in 1971. [Let me explain.] Words: 3025

Michael Spence, professor at New York University’s Stern School of Business and winner of the 2001 Nobel Prize in economics, believes there's "probably a 50%" chance of the global economy slipping into recession. Nouriel Roubini disagrees and says flatly that a recession is coming and that it is a mission impossible now to stop it. The Philadelphia Federal Reserve Bank places the odds at 85% of a recession. David Rosenberg, another very savvy economist, says that by 2012, the chance of a second recession is 99%. Peter Schiff, who with Roubini, correctly and accurately predicted the collapse on Wall Street and ensuing recession, thinks one is 100% certain. [Let's take a look at why they hold such views.] Words: 829

The Baltic Dry Index is often cited by economists as a bellwether of global economic activity. The index, which measures the price of transporting raw materials by sea, has now risen by more than 21% from its recent lows and is also up 16% in the last week alone ...calling into question the advent of a global recession. [Let us explain.] Words: 292

The Philly Fed number has never been this low without the economy being in recession having just recorded the 21st-worst reading in over 43 years! [While we are not in an officially sanctioned recession yet this new survey strongly suggests that that unwelcomed time has come.] Words: 260

The following 10 reasons give a foundation for why I believe we may be approaching another recession. Words: 903

You think the problems are bad now? You wait until we don't have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It's not going to be a pretty picture. There will be social unrest. [See below for the link to the interview.] Words: 477

Most Americans don't understand what is happening because neither the mainstream media nor our politicians are telling them the truth. We are being told that we just need to accept our lower standard of living and most Americans seem willing to accept that reality because they keep sending most of the exact same bozos back to Washington D.C....Why are the majority of Americans not screaming to their political "representatives" that they are as mad as hell and not willing to take it any more? Words: 1270