Even as I write these words, the world's largest economy — the E.U. — is coming unglued at the seams, the world's second largest — the U.S. — is careening headlong toward a fiscal cliff that promises to gut its GDP, nearly all of Asia — including Japan, China and India — is slowing...and yet most investors still don't get the message. [Let me go on to explain just what that message is.] Words: 1357

LOOK! Everyone needs to see this. United States owes a lot of money. As of 2012, US debt is larger than the size of the economy. The debt ceiling is currently set at $16.394 Trillion, estimated to be hit around Sep 14, 2012. In the infographic below that enormous amount is illustrated in $100 bills. It's frightening! Words: 605

PARIS (Reuters) - There are signs that the economies of two of the world's leading emerging powerhouses, India and China, are starting to falter, while Europe continues to be handicapped by its debt woes according to a recent report by the Organisation for Economic Co-operation and Development (OECD). [Here are some of the pertinent data.] Words: 250

Over the years foreigners have been buying more and more U.S. debt and now amounts to 33% of the total which is up from "just" 27% at this time 4 years ago and less than 15% only 20 years ago. However, given the dire state of U.S. finances it makes one wonder how much longer this trend will continue and what the consequences will be when the U.S. nolonger has a ready buyers to subsidize their excessive ways. Let's take a look at which countries and entities hold the U.S. debt and the extent to which it has changed over the years. Words: 480

Is this the time to acquire gold? Or is this the time to run away from it? Either answer could be correct, depending upon what course government chooses. Government is at a decision point, one that will determine how our economic malaise next turns. [Let's review their choices.] Words: 922

The Markit PMI data from Europe shows still more deterioration led by France, Italy, and Spain. Let's take a look at a few countries.

[The European Union] will collapse before the end of the year and very likely before the end of the summer. When this crisis hits it will be worse than 2008 and the world Central Banks will not be able to control the damage. What makes this time different are several items: [Let me explain]. Words: 1400

The spectacular rally in the gold price over recent years [has] many observers asking if the precious metal has not moved ahead of its fundamentals...[and if it] has not entered speculative bubble territory. [To address that concern] I have calculated the purchasing-power-protection price of gold for the 43 years from 1970 to 2012 and compared it to the average market price for gold in every year [along with some background of events unfolding over each decade during that time period which should prove] useful as a framework for how to think about the [current] dollar-price of gold. [I think you will find it most enlightening. Take a look.] Words: 3973

Why are both debtors and creditors willing to build a status quo of massive unprecedented debt? [After all, the delusions of] creditors that debt is wealth and should never be liquidated, and of debtors that debt is an easy or free lunch have been smashed by the juggernaut of history many times before...[and] I think they will soon be smashed again. [Let me explain.] Words: 1150

Damnit, how long do we have put up with this crap? Will we ever have an honest conversation on the facts of the matter related to what's going on in the banking system -- and has been since 2007 and indeed for the last 30 years? ...That's [unlikely] because there has been no recognition of the truth, not in Greece, not in Portugal, not in Ireland and not in the United States and here's truth: Government cannot spend more than it taxes. Period! There is no "if", there is no "and", and there is no "but." All the games played over the last 30 years, were, [and still] are, in fact, scams. Let me explain why. Words: 1700