First...
Hard-Nosed Fed Sends Global Markets Reeling
The global bond markets and the twin havens of the yen and Swiss franc have been flashing warning signs for weeks, tracking leading indicators as they topple like dominoes. They always sniff trouble first. What has emerged since the caustic and rancorous Fed meeting on August 10 is that Benji Bernanke was unable to marshal a consensus behind fresh Quantitative Easing. In the US, the 27 percent collapse in existing homes sales in July leaves no doubt that America's property market cannot stand on its own feet without the prop of home buyer tax credits. In other words, the FED and our government are slowly discovering that it cannot do anything to get the US economy going... Time for more of that Obama Money.
Next...
Morgan Stanley Says Government Defaults Inevitable
Investors face defaults on government bonds given the burden of aging populations and the difficulty of increasing tax revenue, according to a Morgan Stanley executive director. Now get this.... This article states that the U.S. government’s debt is 53 percent of GDP, one of the lowest ratios among developed nations... Let's see, the official national debt is over 13 Trillion and the United States Gross Domestic Product is 14.26 Trillion. 53% of 14.26 is 13? Wow! This is some serious new kind of math? Who is the teacher? Timmy Geithner?
Next...
Ron Paul Calls for Audit of US Gold Reserves
Well, it has been over 50 years since there has been a physical audit of the gold at Fort Knox. Now, U.S. Rep Ron Paul plans to introduce a new bill next year, which most likely will unfortunately go down in flames, that will allow for an audit of the US gold reserves. Does anyone, after the failed Audit the Fed bill believe anyone is seriously going to vote for something that would expose the fraud of our gold? Seriously, even if trusted auditors do get in, they will most likely find gold painted lead at this point. There is probably more gold around Mr. T's neck than in Fort Knox.
Next...
Home Prices May Drop Another 25%
This is a pretty fascinating picture. Using the year 1890 as a benchmark, one can easily see just how incredibly absurd the housing boom that hit its peak in July 2006 was.Most of the time, housing prices hung around the 110 percent; however, one can see the bubble forming starting in the late 90's. Now, we are seeing prices take a nose dive back down to where they are supposed to be, or perhaps, as seen during the Great Depression, a value that will be significantly lower than the 1890 benchmark.
Finally,
Please prepare now for the forthcoming economic, and subsequent social, unrest that will hit the US.
Good Day
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