First...
Moody's Warns it May Downgrade Spain's Debt
Looks like Moody's is playing catch up. Moody's, which lowered Spain's rating from Aaa to Aa1 in September, warned it may downgrade Spain's debt because the government is vulnerable to a borrowing crunch next year. Spain's bond yields have risen to high levels in recent weeks amid the Europe-zone market turmoil; which only adds more bond competition to U.S. Treasuries.
Next...
The Dire Collapse Taking Place
According to Jim Sinclar, 40 now identified U.S. states are using the same risky bookkeeping that camouflaged Greece’s financial weakness. The municipal bond market is in a second free fall as entities are failing in paying their obligations to suppliers and services. In watching the decline of the euro, we are witnessing the best precursor for the terminal attack on the U.S. dollar very soon.
Next...
U.S. Called Vulnerable to Rare Earth Shortages
Products ranging from electric cars to wind turbines are made with rare earth minerals; unfortunately, 96 percent of which are produced by China and Beijing has wielded various export controls on them. Just imagine what would happen if China just stops all shipments to the U.S. We have the minerals, but have not taken advantage of our own natural resources.
Next...
Best Buy's Results Are the Canary in the Coal Mine
While the number of Best Buy stores went from 873 in 2007 to 1,297 in 2010, the third quarter figures are very telling. Same-store sales have dropped by 5%, while total sales fell by 3% to $8.7 billion. Best Buy's domestic sales have dropped by 11% while entertainment software sales, making up 15% of the total, slid 14%. Looks like consumers need more of that Obama Money.
Next...
Justice Department Sues BP for Gulf Oil Spill
The Justice Department is suing BP, and eight other companies, over the monetary damages from the Gulf Oil Spill. They are asking that the companies be held liable without limitation and also seeks civil penalties under the Clean Water Act. The Clean Water Act specifies that companies can be fined between $1000 and $4300 for each barrel of oil spilled. If successfully fined and using very conservative estimates for the number of barrels spilled, we would get a figure of nearly 4.7 Trillion dollars.
- 1 barrel of oil = 42 gallons
- 10,000 barrel/day * 109 days = 1,090,000 barrels
- 1,090,000 barrels * $4,300/barrel = $4,687,000,000
Next...
Chinese Rush To Gold
Because of the inflation in China, the higher than normal imports of gold has turned into a rush. This, despite China being the world's leading gold producer. So, you better have your hands on physical gold and silver and not soon-to-be worthless paper.
Finally,
Please prepare now for the forthcoming economic, and subsequent social, unrest that will hit the US.
Good Day
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