15 February 2011

Hyper Report - 110215


First...
France Wants New Global Finance System
Now France is joining the international choirs that wants a new global finance system that is based on several international currencies. Hitch America to 19 other currencies? What could go wrong? Oops, the euro part deuce.

Next...
Debt Now Equals Total U.S. Economy
Odrama projects that the gross federal debt will top $15 trillion this year, officially equaling the size of the entire economy. The 2011 budget will see the biggest one-year jump in debt in history. Now isn't that special.

Next...
White House Expects Deficit to Spike to $1.65 Trillion
The federal deficit will spike to 1.65 Trillion for this fiscal year and will equal about 10.9 percent of GDP. In addition, Odrama is proposing a $3.73 Trillion dollar budget for next fiscal year. How can we have a nearly $4 trillion budget while only collecting $2 trillion in taxes? The so-called 100 billion dollars in fiscal cuts being discussed is pretty much jettison a few deck chairs and claiming that the Titanic has been saved. As George Washington said..."The last official act of any government is to loot the treasury."

Next...
Geithner Tells Obama Debt Expense to Increase to Record
The days of low borrowing costs to service the national debt are all but over. Interest expense will rise to 3.1 percent of GDP by 2016. Demand for Treasuries remains close to record levels at government debt auctions, thanks to the Federal Reserve monetizing the debt. The Federal Reserve will not monetize the debt.

Next...
Surging Corn Set To Fuel Widespread Price Hikes
The rising price of corn, that is used in the vast majority of foods, is finding its increased price, of over $7 a bushel, into a multitude of products. The USDA reported that corn supplies are at their tightest level in 15 years; yet we still make ethanol.

Next...
Clothing Prices to Rise 10 Pct Starting in Spring
Cotton has more than doubled in price over the past year, hitting all-time highs. The price of other synthetic fabrics, some that use oil, have jumped roughly 50 percent. When reviewing the production costs in clothing, raw materials account for 25 to 50 percent and labor is from 20 to 40 percent; thus, leaving no doubt about increasing prices of clothing.

Next...
Inflation, Hyperinflation and Real Estate
Because of lack of buyers and interest rates being high during high inflation or hyperinflation, the pool of customers to buy houses shrinks; therefore, the prices of houses go down relative to other goods and services. As an example, in Chile during their 1973, hyperinflation, a house went from $650,000 to $90,000. You can buy a house cheap during a hyper-inflationary event; however, you will need to buy it in one shot using money.

Finally,
Please prepare now for the beginning of the economic and social unrest. Good Day

1 comment:

  1. Hun: Great idea. Both the YouTube videos and the blog. Love your sign-off. Keep up the good work. Thank you.

    ReplyDelete