Sunday, October 16, 2011

America's Financial Doomsday

America's Financial Doomsday
Strait from the best Economic minds
 "You can’t save a nation that’s drowning in debt by throwing more debt at it any more than you could save a drowning man by throwing more water on him."
 What is the historic, life-changing, world-changing event that is also about to vaporize massive amounts of wealth and potentially threaten our liberties right here in the United States of America? It’s when the government can no longer borrow and simply runs out of money.
 Think about that: What would happen right now if our federal government was no longer able to find more willing lenders, no longer able to borrow money?
Before you answer though, remember this: Washington has to borrow nearly half of every dollar it spends today.
 What will happen when global investors deny our application for yet another loan? When the Chinese and other foreign lenders say No more! to losing their shirts as Washington guts the value of the dollars they earn?
 America's Financial Doomsday 
Sorry but America’s line of credit is cancelled. Washington’s loan application is denied
This is not far off. The warning signs are already here
Put simply, that fateful day when Washington is no longer able to borrow the money it desperately needs is speeding toward us like a runaway freight train.
This is why Congressman Ron Paul recently issued this somber warning:
“At the present time the Chinese have backed off from what they’re loaning us, interest rates are starting to go up, inflation factors are coming up.
“Believe me, that next step is a currency crisis because there will be a rejection of the dollar. The rejection of the dollar is a big, big event.”
Congressman Paul is correct. The worst-case scenario...
When Washington can no longer borrow money, it will have no choice but to immediately slash spending.
And since nearly half of every dollar it spends is borrowed, our leaders will have no choice but to radically reduce, delay or even cancel payments to seniors, veterans, the poor, the disabled and to pensioners. Millions who count on government checks will suddenly find themselves on the ropes, struggling to survive.
Therefore, with government programs slashed or cancelled ...With consumers paralyzed in fear. With the U.S. economy in intensive care, with tax revenues plunging, and
With global investors refusing to lend more money to Uncle Sam
Here is the worst-case scenario, the scenario we fear the most. Hunger and homelessness explode to pandemic levels from coast to coast. The victims take to the streets. Rallies turn into demonstrations, then into protests, and finally into riots.
With law enforcement severely crippled by the spending cuts, crime skyrockets,
And fire departments running at austerity levels, cities will be left to burn.
With emergency services and hospitals out of money, people will die.
As we saw in Brazil and Russia, Washington will have no choice but to restore order by taking away your personal liberties.
 And never forget this final, devastating fact
The last phase of this great debt crisis ended because Washington bailed out the largest failing companies. This time around, there are two reasons why there can be no giant bailouts.
 Conservatives in Congress are sworn to oppose bailouts, and second because, no bank, or government, or group of nations, is rich enough to save America.
 Safe Money Report is our flagship publication here at Weiss Research. It has the distinction of having warned investors of every major financial threat of the past 35 years.
As the publisher, I work closely with Mike Larson, its editor, to bring you everything you need to protect and grow your wealth in these troubling times.
You’ve probably seen Mike on CNBC with Maria Bartiromo, or on Fox Business News with Brian Sullivan, or on one of the many other financial programs where he regularly appears. You’ve probably also seen him in the Huffington Post, New York Times, Wall Street
Journal, Dow Jones Newswires- AP, Reuters- Many other news outlets
 We understand the anger behind the protests. We just worry about whom the protesters are blaming...and about some of the usual solutions that are floating through their heads. As Tim Staermose of The Sovereign Man writes:
"The anger is understandable. But it's infuriating to so many of these protesters railing on YouTube against the free market, moaning how capitalism has pillaged the poor for the benefit of the rich.
"Nothing could be further from the truth. There hasn't been a free market in money and banking for a century. The central bank/fractional reserve system is the biggest cartel in the history of economics. It's nothing but big government price rigging.
"How can anyone argue we have free markets when the price of money is set by decree? An unelected board of governors at the Federal Reserve simply decides the price of money, and that's that.
"Nearly EVERYTHING in our credit economy is driven from this number -- mortgages, business purchases, trade finance, government spending...and it affects almost everyone on the planet. This is not a free market, it's an economic dictatorship."
"No one is picketing Michael Moore, or Tom Hanks or Al Gore, because these people didn't manipulate the global financial system to the detriment of the taxpaying public and then mortgage our grandkids' futures to pay for it. And no, I'm not going to argue Al Gore with you either.
"The 99% and the Tea Baggers are on the same financial (if not ideological) page. Wall Street manipulates D.C. D.C. manipulates the media. The media are owned by Wall Street. Take it out one concentric circle to include London, Geneva, Beijing, et al., and you begin to see where this is going. Or perhaps you do not? Don't feel bad: Marie Antoinette didn't get it either.
"The fact that something is happening here and you don't know what it is does not imply that those of us who are out on the streets doing your dirty work for you (and yes, you are a serf and always will be, no matter how your gurus string you along) do not.
"Divide and conquer, Gary, me boy. It's the oldest play in the book."
Dear patron, we do get it. Just last week in Agora Financials 5 Min. Forecast, our executive publisher, Addison Wiggin, wrote:
"We're struck -- and we know we're going to make people uncomfortable saying this -- by the parallels between Occupy Wall Street and the Tea Party.
"Both movements are born in part from outrage over the 2008-09 bank bailouts. Both feel the 'American dream,' however they define it, is out of their reach. Both feel left out by a ruling class.
"The Tea Party drove one longtime Republican operative to quit after 30 years as a Capitol Hill staffer. But Mike Lofgren recognized where their grievances came from.
"'Historical circumstances,' he wrote last month, 'produced the raw material: the deindustrialization and financialization of America since about 1970 [about the time Nixon severed the dollar's tie to gold and made it a true fiat currency -- Ed.] has spawned an increasingly downscale white middle class -- without job security (or even without jobs), with pensions and health benefits evaporating and with their principal asset deflating in the collapse of the housing bubble. Their fears are not imaginary; their standard of living is shrinking.'
"How different is that, really, from the motives impelling the OWS protesters to the streets? For all we know, the OWS protesters are the college grads with no jobs stuck living in their Tea Party parents' basement.
"Heck, even some of the Tea Partiers might support the OWS protesters notions of 'tax the rich.'"
A Whiskey Bar regular sends this...
"Occupy Wall Street. Yeah, makes me pine for the protests of the '60s and '70s. These skinbags are the useless generation. Not Gen X, not Gen Y. Just Gen U for Useless. They are so ignorant they couldn't pour piss out of a boot if the instructions were printed on the heel.
College debt
 There's a hoot, A BS degree in Gay, Lesbian and Transgender Studies. $250,000 in debt: 100%. Job prospect: 0%.
 "A quick FYI., I spent five years getting a BS degree in Finance. I supported myself as a Teamster (Local 542), driving a truck for a living, taking 18 units a semester and getting about four hours of sleep a night for five years. I graduated with zero debt from a good, not great, university and got a first-rate job and Dun & Bradstreet in 1975. In an economy with 10% unemployment, I beat out an MBA and Ph.D. competing for the same job.
"I have absolutely no sympathy for the OWS crowd or overeducated idiots with $250,000 in college debt. Tough toe nails. Get a job and work for 40 years. Things will probably work out, or not. It's not my problem, nor will I make it my problem.
All my best to you great folks at Agora
  You have a real bead on things and don't pull punches. Don't relent
"Craig F." Today, we've harped on the central banks, but next time, we'll turn the spotlight on the "useful idiots" who fail to understand the source of the problem...and do their best to destroy their only means of salvation.
Please do send us your thoughts in time to be featured in that issue. Write to
We're not done with the central banks, though. Not by a long shot. And we have a little plan to show them we're sick of their crap.
It doesn't involve marching around or waving signs. Oh no, good patrons. What we have in mind is a bit more tangible, and not only will it show the Fed that we mean business. It's also bound to protect you, even greatly enrich you, when their little experiment with monopolizing fiat money comes to a crashing end. Stay tuned for more
 And what exactly is causing our economic problems? In short: inflation. Both the creation of new money unbacked by productive activity literally, conjured up from nothing at the whim of a central banker and the artificially low cost of borrowing to expand the amount of debt again, thanks to central bankers buying government debt with the money they create in order to shove interest rates down.

Read more on Our Economic Troubles

1 comment:

Anonymous said...

It still amazes me that The Federal Reserve has no restrictions, they can just print money
out of thin air, and no one knows where that money went and how it' being used.