Economy

A major portion of the U.S. dollar's valuation stems from its lock on the oil industry and if it loses its position as the global reserve currency the value of the dollar will decline and gold will rise. Iran's migration to a non-dollar based international trade system is the testing of the waters of a non-USD regime...transition to a world in which the U.S. Dollar suddenly finds itself irrelvant. [Let me explain.] Words: 1200

For the bulls yesterday's news of a much higher-than-anticipated jump in consumer borrowing is yet more proof that the recovery is on track. [For the bears it is outright confirmation that America's spending is setting it up for a major financial crash! Let me explain.] Words: 527

For the uniformed on Wall Street and in Washington, the growing tide of red ink is a signal that America is returning to normalcy. The only problem with that is our so called ‘normalcy’ is rapidly leading us into insolvency. The sad truth is that our desire to consume foreign made goods, with money that is borrowed, is evidence that our country is growing weaker by the day.

The primary obstacle to economic recovery is widespread insolvency among households and banks (meaning liabilities exceed assets). A consumer who is broke cannot spend, and a bank that is broke cannot lend. Devaluing the dollar would reduce the real value of the debt (increase the nominal value of the assets), rendering millions of households and most banks instantly solvent. [Let me explain.] Words: 590

The U.S. government is destroying its own currency and is now showing signs of desperation and fear regarding the gold market [going as far as] to label goldbugs as terrorists.

I believe our fiscal situation is much worse than most people realize. True, the situation might be resolvable with a hard-nosed turnaround specialist in charge [Romney?] but, even here, the emphasis is on “might”! In a political context, where citizens have been conditioned to believe they are entitled to live at the expense of government (i.e other citizens because, after all, government has nothing that it first does not take from someone else), the situation is beyond hopeless. Let me address the true economic situation of the U.S. by way of an email I received from a regular reader recently. Words: 615

What passes for journalism at CNBC and the rest of the mainstream print and TV media is beyond laughable. Their America is all about feelings. Are we confident? Are we bullish? Are we optimistic about the future? America has turned into a giant confidence game. The governing elite spend their time spinning stories about recovery and manipulating public opinion so people will feel good and spend money. Facts are inconvenient to their storyline. The truth is for suckers. They know what is best for us and will tell us what to do and when to do it. [Let me give you some examples.] Words: 1130

I am astonished to see how much money the central banks are printing and how their balance sheets are expanding. We have the absolute perfect recipe for hyperinflation and thus a massive increase in the price of gold and silver. So said Egon von Greyerz (www.goldswitzerland.com) in edited excerpts from an interview* with King World News.  Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com …

The recent super-dovish FOMC statement of an extended period of low interest rates and possibly a full blown QE 3 replacing the current “light” version...raises inflation risks and so pressures the USD....[That being said, I present below the GOOD, the BAD and the downright UGLY possibilities for the USD as 2012 unfolds.] Words: 1500

The U.S. government is spending more than a trillion dollars more than it takes in every year...[which] all gets into the pockets of ordinary Americans [who,] in turn,...use that money to pay the mortgage, buy food, shop at the mall, etc. - creating a "false prosperity" bubble that is not real. It may feel real to you right now, but it is unsustainable...We are living in the greatest debt bubble the world has ever seen and, as such, a devastating economic collapse is on the horizon no matter what we do [so] don't let this false prosperity and this "calm before the storm" fool you...There is going to be a massive amount of pain so you might want to get yourself and your family prepared for that. [Let me explain.] Words: 1211