Debt & Deficits

Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012...followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates...[Let me show you the evidence.] Words: 660

Question: What do you get when you mix negative real interest rates with stimulative money supply efforts by global central banks? Answer: An exceptionally potent formula for higher gold prices that could send gold to the unimaginable level of $10,000 an ounce. [Let me explain further.] Words: 1049

With most of the world’s major economies as well as the financial system bankrupt...most people will rely on governments and central banks to save us but how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve the problem they created in the first place... The main objective of governments is to stay in power and thus to buy votes, therefore they are incapable of taking the right decisions and the opposition, aspiring to power, is even less suitable since they will lie through their teeth and promise the earth in order to be elected. So what is the solution? Read on! Words: 2391

In 1956 Hubbert predicted that US oil peak [production] would be sometime between 1969 and 1971 for [which] he was ridiculed...[but it did precisely that - ] in 1970... Then, in 1974, he predicted [that] the world ] production of crude] oil [would] peak [around] 1998 [qualifying that projection by saying] that if OPEC were to restrict the supply, then the peak would be delayed by 10-15 years which would put it at 2008-2013, or exactly right. OK, now is anyone willing to make a bet that Hubbert's THIRD prophecy about the cultural crisis he expected is wrong? Didn't think so. Here it is [- and I include in the article several suggestions on how Hubbert's 3rd forecast might actually be averted were the powers to be agree to take drastic action, which is unlikely]. Words: 1369

[Unfortunately,] for the U.S....its budget deficit is growing in spite of the fact revenues into the treasury continue to grow...Given the low level of interest rates on the Treasury's debt it would not take much of an interest rate spike in the U.S. to negatively impact the government's budget. [So, in reply to the unspoken question on everyone's mind, "Yes, the debit crisis could most definitely spread to the U.S." Let me explain further.] Words: 633

Countering Krugman’s argument that today’s low interest rates show that no one is worried about lending money to us and, therefore, that we should borrow and spend our way to prosperity, Ferguson argues that today’s interest rates are irrelevant. When countries get into trouble, he says, they get into trouble quickly – the way Greece and other European countries have. Taking …

Wars and depressions largely characterize the periods of time where there have been significant run-ups in the level of the U.S. National Debt Burden per Capita [i.e. the U.S. National Debt Burden per Capita-to-income Index], with the debt taken on to support the costs of the U.S. Civil War and World War II being the most significant. Today... it is perhaps most comparable to the Great Depression. [Take a look.] Words: 326

I have a great deal of respect for Paul Krugman as an economist. He has a unique talent among economists for being able to make complex economic issues both understandable and interesting for the average person. [That being said,]...I am far less impressed with his abilities as a public policy commentator. [Let me explain.] Words: 567

The global financial system is highly interconnected so problems in one part of the world can reverberate almost everywhere else - risking a default, contagion, contracting credit and collapsing economic activity... [Take a look at the amazing graphic in this article to get] a visual guide of the intertwined complexities of the crisis.

The clock is ticking. Every second, it seems, someone in the world takes on more debt. The idea of a debt clock for an individual nation... [is old hat - see links below to many such debt clocks - but] our clock (here) shows the global figure for all (or almost all) government debts in dollar terms. Words: 300