U.S. government debt has almost doubled, soaring by at least $9.7 trillion in IOUs.
Another $3 trillion in debt may be issued in the next few months in additional bailout plans.
The U.S. banking system will effectively be nationalized.
Large swaths of the private residential real estate market in the U.S. will effectively be nationalized.
The price of gold has jumped from $737 to over $900 an ounce, a gain of more than 22%!
And what has the dollar done? The international value of the U.S. dollar remains a mere 16% above its recent record low.
In other words ...
With all the panic liquidation you're hearing about ...
With all the massive pay down of debt that is occurring ...
With all the movement of money into cash and the alleged safety of the U.S. dollar that you're hearing so much about ...
With foreign currencies like the pound and the euro plunging ...
I strongly suggest you listen to the markets and what they're telling you about the dollar: Its value is headed much, much lower.
The U.S. dollar has only been able to eke out a minuscule 16% rally off its record lows!
This action in the dollar is absolutely pathetic under these circumstances. I strongly suggest you listen to the markets and what they are telling you about the dollar.
The value of the dollar is headed much, much lower. Either the markets will depreciate the dollar naturally, or the G-20 will eventually replace the dollar as the world's reserve currency.
That is what the action in the dollar is telling you. That is also what the bursting bond bubble is telling you.
And it is also why you will soon see tremendous rallies in certain assets — namely blue-chip stocks and commodities.
Best wishes,
Larry
CHECK MY BLOG: http://whysilverandgold.blogspot.com/
CHECK TWITTER:
http://twitter.com/WhyLarryDeWein
http://twitter.com/WhyGold
http://twitter.com/WhySilver
Thursday, February 12, 2009
Monday, February 9, 2009
ARE WE FOLLOWING JAPAN?
Published in the New York Post on February 9, 2009
From Nouriel Roubini, the economist who most closely predicted the current mess, comes a warning couched in economic jargon that needs to be deciphered and publicized.In a column on Forbes.com, Roubini warns that the United States, in its response to the economic crisis, may be following in the disastrous footsteps of Japan - whose sluggish and overly lenient response to a financial crisis led to a decade of economic misery.In economic jargon, Roubini warns: The "market-friendly, case-by-case approach to the necessary debt reduction of insolvent private non-financial agents - corporate for Japan, households for the US - will be too slow." He calls for an "across-the-board debt reduction" - lest we be condemned to a "systemic debt overhang."
In English, this means that by helping people to stay in homes they can't afford, buy cars beyond their means, pay for college through loans - in short, to acquire goods and services on credit they can't sustain -we are doing them no favors. Instead, we're assuring that debt will "overhang" their lives like a vulture sitting on a branch, inhibiting their buying habits and inhabiting their nightmares.But if we force an "across-the-board debt reduction" that makes them move out of their overpriced homes, trade in their luxury cars, transfer to state colleges - and, if necessary, escape from under their credit-card debt via bankruptcy, we can eliminate the "overhang" and let them and our nation get on with their lives.
FOR ONE WAY OF PROTECTION, AND A MAJOR ONE AT THAT, PROTECT YOURSELF WITH SILVER AND GOLD HOLDINGS:
See http://whysilverandgold.blogspot.com/
FOR A WAY TO ACCUMULATE SILVER , GOLD AND PLATINUM COINS, SEE:
http://www.SilverTornado.com/?dewein
From Nouriel Roubini, the economist who most closely predicted the current mess, comes a warning couched in economic jargon that needs to be deciphered and publicized.In a column on Forbes.com, Roubini warns that the United States, in its response to the economic crisis, may be following in the disastrous footsteps of Japan - whose sluggish and overly lenient response to a financial crisis led to a decade of economic misery.In economic jargon, Roubini warns: The "market-friendly, case-by-case approach to the necessary debt reduction of insolvent private non-financial agents - corporate for Japan, households for the US - will be too slow." He calls for an "across-the-board debt reduction" - lest we be condemned to a "systemic debt overhang."
In English, this means that by helping people to stay in homes they can't afford, buy cars beyond their means, pay for college through loans - in short, to acquire goods and services on credit they can't sustain -we are doing them no favors. Instead, we're assuring that debt will "overhang" their lives like a vulture sitting on a branch, inhibiting their buying habits and inhabiting their nightmares.But if we force an "across-the-board debt reduction" that makes them move out of their overpriced homes, trade in their luxury cars, transfer to state colleges - and, if necessary, escape from under their credit-card debt via bankruptcy, we can eliminate the "overhang" and let them and our nation get on with their lives.
FOR ONE WAY OF PROTECTION, AND A MAJOR ONE AT THAT, PROTECT YOURSELF WITH SILVER AND GOLD HOLDINGS:
See http://whysilverandgold.blogspot.com/
FOR A WAY TO ACCUMULATE SILVER , GOLD AND PLATINUM COINS, SEE:
http://www.SilverTornado.com/?dewein
HE IS TELLING THE TRUTH ABOUT THIS!
Every time we turn around, this guy is bad-mouthing the economy. Is that lifting our spirit or dumping on it in order to sell his tax cut?" liberal comentator Bill Press said on CNN. Newsweek's Jonathan Alter, in an article headlined "Thanks Ever So Much, President Poor-Mouth," said, "Even if Bush turns out to be right in his predictions of gloom, that doesn't mean he was right to make them." The New York Times lectured Mr. Bush, saying that presidents were supposed to be "cheerleaders for the nation's economy."
But Mr. Bush tried that, too. As the United States recovered from the economic devastation caused by the 9/11 attacks, the president constantly talked up the economy, asserting that the American work force could compete with any in the world, and he assured Americans that happy days were right around the corner. Even as the currrent recession took hold, he continued to portray the nation's future in optimistic tones.
For all his effort, he was portrayed as a Pollyannish rube whose naivete so clouded his vision that he could not see the stark reality of the economic situation. How else to explain his optimism in the face of $4-a-gallon gas or exploding unemployment, or presidential statements a year ago, such as "I don't think we're headed to a recession, but no question we're in a slowdown."
Mr. Obama has gone much further than that. Just Friday, Mr. Obama said a report that 600,000 jobs were lost in January meant "it's getting worse, not getting better. ... Although we had a terrible year with respect to jobs last year, the problem is accelerating, not decelerating." Last week he said, "A failure to act, and act now, will turn crisis into a catastrophe."
But he isn't the only Democrat ramping up the rhetoric while talking down the economy. House Speaker Nancy Pelosi of California said last month that our economy "is dark, darker, darkest." Rep. David R. Obey of Wisconsin said, "This economy is in mortal danger of absolute collapse." And Sen. Claire McCaskill of Missouri said of the economic-stimulus bill, "If we don't pass this thing, it's Armageddon."
Wow, Barak Obama is telling it like it is about the economy and the vast majority don't want to hear the truth. THE DOLLAR IS FAILING! It is fiat money, paper money like Monopoly money. ALL PAPER MONEY SYSTEMS HAVE FAILED!! To protect yourself, check out the following in order of 1 and 2:
http://Whysilverandgold.blogspot.com
http://www.SilverTornado.com/?dewein
But Mr. Bush tried that, too. As the United States recovered from the economic devastation caused by the 9/11 attacks, the president constantly talked up the economy, asserting that the American work force could compete with any in the world, and he assured Americans that happy days were right around the corner. Even as the currrent recession took hold, he continued to portray the nation's future in optimistic tones.
For all his effort, he was portrayed as a Pollyannish rube whose naivete so clouded his vision that he could not see the stark reality of the economic situation. How else to explain his optimism in the face of $4-a-gallon gas or exploding unemployment, or presidential statements a year ago, such as "I don't think we're headed to a recession, but no question we're in a slowdown."
Mr. Obama has gone much further than that. Just Friday, Mr. Obama said a report that 600,000 jobs were lost in January meant "it's getting worse, not getting better. ... Although we had a terrible year with respect to jobs last year, the problem is accelerating, not decelerating." Last week he said, "A failure to act, and act now, will turn crisis into a catastrophe."
But he isn't the only Democrat ramping up the rhetoric while talking down the economy. House Speaker Nancy Pelosi of California said last month that our economy "is dark, darker, darkest." Rep. David R. Obey of Wisconsin said, "This economy is in mortal danger of absolute collapse." And Sen. Claire McCaskill of Missouri said of the economic-stimulus bill, "If we don't pass this thing, it's Armageddon."
Wow, Barak Obama is telling it like it is about the economy and the vast majority don't want to hear the truth. THE DOLLAR IS FAILING! It is fiat money, paper money like Monopoly money. ALL PAPER MONEY SYSTEMS HAVE FAILED!! To protect yourself, check out the following in order of 1 and 2:
http://Whysilverandgold.blogspot.com
http://www.SilverTornado.com/?dewein
Tuesday, February 3, 2009
ECONOMIC PAIN!
How Much More Economic
Pain Is Yet to Come?
The answer: A whole lot more!
In fact, the usually upbeat International Monetary Fund expects things to get much worse.
The IMF dropped its forecast for global economic growth to a measly 0.5% for 2009 — the weakest pace since World War II. What's more, that's a drastic reduction from the 2.2% growth the IMF had predicted as recently as November.
An IMF spokesperson said:
"Unless stronger financial strains and uncertainties are forcefully addressed, the pernicious feedback loop between real activity and financial markets will intensify, leading to even more toxic effects on global growth."
Even China, the economic juggernaut, is rapidly slowing down. Fourth quarter growth fell to 6.8%, barely half the 13% growth the Chinese economy enjoyed in 2007.
See http://Whysilverandgold.blogspot.com
http://twitter.com/WhySilver
http://twitter.com/WhyGold
Pain Is Yet to Come?
The answer: A whole lot more!
In fact, the usually upbeat International Monetary Fund expects things to get much worse.
The IMF dropped its forecast for global economic growth to a measly 0.5% for 2009 — the weakest pace since World War II. What's more, that's a drastic reduction from the 2.2% growth the IMF had predicted as recently as November.
An IMF spokesperson said:
"Unless stronger financial strains and uncertainties are forcefully addressed, the pernicious feedback loop between real activity and financial markets will intensify, leading to even more toxic effects on global growth."
Even China, the economic juggernaut, is rapidly slowing down. Fourth quarter growth fell to 6.8%, barely half the 13% growth the Chinese economy enjoyed in 2007.
See http://Whysilverandgold.blogspot.com
http://twitter.com/WhySilver
http://twitter.com/WhyGold
Monday, February 2, 2009
BE HAPPY!
BE HAPPY!
I'M HAPPY WITH WHO I AM AND WITH WHAT I DO Please try to remember to repeat this sentence to yourself ALL DAY today, here and there ...
In every odd moment you can ...
That's your goal with each sentence Every Day. Repeat it, repeat it, repeat it.
Breathe it in, and breathe it out.
OK, So what does this particular affirmation really mean?
What does it mean to be Really Happy with Who You Are? And with what You Do?
For me, sometimes I find it to be a challenge.Sometimes those negative voices inside me just want to "have their way" with me.
This affirmation helps me to get grounded. To get solid. What about you?
What might be possible for you if you REALLY FELT This Affirmation Strongly? REALLY BELIEVED IT? You don't "have to" believe it yet ... At least not all the time!But it could be a nice place to begin, Couldn't it?
So, Try telling yourself this affirmative statementall day long today, and whenever you can in the future.
I'M HAPPY WITH WHO I AM AND WITH WHAT I DO
I'm looking forward to talking with you again soon! "YOU ARE A Miracle!"
I'M HAPPY WITH WHO I AM AND WITH WHAT I DO Please try to remember to repeat this sentence to yourself ALL DAY today, here and there ...
In every odd moment you can ...
That's your goal with each sentence Every Day. Repeat it, repeat it, repeat it.
Breathe it in, and breathe it out.
OK, So what does this particular affirmation really mean?
What does it mean to be Really Happy with Who You Are? And with what You Do?
For me, sometimes I find it to be a challenge.Sometimes those negative voices inside me just want to "have their way" with me.
This affirmation helps me to get grounded. To get solid. What about you?
What might be possible for you if you REALLY FELT This Affirmation Strongly? REALLY BELIEVED IT? You don't "have to" believe it yet ... At least not all the time!But it could be a nice place to begin, Couldn't it?
So, Try telling yourself this affirmative statementall day long today, and whenever you can in the future.
I'M HAPPY WITH WHO I AM AND WITH WHAT I DO
I'm looking forward to talking with you again soon! "YOU ARE A Miracle!"
Wednesday, January 28, 2009
BIGGER OR BIGGEST REAL ESTATE BUST
"The Next Real Estate Crisis"
"By April 2009, hundreds of thousands of option ARM mortgages will begin resetting, bringing on a fresh wave of foreclosures."
- Business Week, June 5, 2008
Here's what will happen:
Beginning in April 2009, hundreds of thousands of U.S. homeowners who took out "option adjustable-rate mortgages" (ARMs) will start to see their monthly payments skyrocket as those interest rates begin to reset.
You see - at this very moment, there are roughly $500 billion worth of option ARM loans outstanding in the U.S. These loans were especially popular during the height of the real estate boom, as they allowed buyers to enjoy low initial payments that would then "adjust" after several years.
But, hey, at the height of the real estate bubble, everyone assumed that home values would continue climbing, so there was nothing to worry about, right?
Wrong.
The real estate boom hit its peak in April 2004... and the majority of option ARM loans are due to begin resetting after five years. In other words... in April 2009.
In December 2008, investment fund manager Whitney Tilson told the 60 Minutes television program that he expected as many as 70% of these loans to default.
He also predicted that over the next four years, more than 8 million Americans will lose their homes to foreclosure.
And he estimated that the total damage from the collapse of the sub-prime lending market is already approaching $1 trillion... but the coming collapse of the Option ARMs and Alt-A loans (which were made to borrowers with low credit scores) could mean another $1.5 trillion in damage.
Let me put that another way...
We're already $1 trillion in the hole... and we're still not even halfway through this disaster
And it all begins to unravel in April 2009 - just a few weeks from now - when those Option ARM loans begin resetting.
Because here's what will happen:
* As we've seen consistently over the last year... the U.S. Government will step in and attempt to "bail out" the U.S. homeowner and prevent the onslaught of massive foreclosures...
* In order to do this, the government will be forced to throw even more money into the system... in what could end up being the most costly bailout to date...
* Once this begins, the stock market will take a nosedive - with the Dow heading to 6,500 or lower...
* Finally - and most incredibly - this latest huge increase in the U.S. money supply will put the United States in danger of having its own credit rating slashed!
"Here's how I did with your last two trades: AXPMQ, bought 11/12 for $2.50, sold 11/13 for $4.20 for a 68% one day gain. XJZMM, bought 11/11 for $1.56, sold 11/13 for $2.43 for a 56% gain in two days… Take care, Ryan..." In fact, Moody's warned in January 2008 that "the U.S. is at risk of losing its top-notch triple-A credit rating."
And in August, The Kiplinger Letter reported, "The idea of the U.S. losing its AAA debt rating isn't far-fetched anymore. Standard & Poor's credit rating agency says the U.S. is taking on a huge risk."
A downgrade of the U.S. credit rating would spell immediate financial disaster - instantly crippling the new administration's ability to revive the economy...
And not to mention - the overall financial chaos created will help send investors fleeing from stocks once again and back into "safe havens" such as U.S. Treasuries.
"By April 2009, hundreds of thousands of option ARM mortgages will begin resetting, bringing on a fresh wave of foreclosures."
- Business Week, June 5, 2008
Here's what will happen:
Beginning in April 2009, hundreds of thousands of U.S. homeowners who took out "option adjustable-rate mortgages" (ARMs) will start to see their monthly payments skyrocket as those interest rates begin to reset.
You see - at this very moment, there are roughly $500 billion worth of option ARM loans outstanding in the U.S. These loans were especially popular during the height of the real estate boom, as they allowed buyers to enjoy low initial payments that would then "adjust" after several years.
But, hey, at the height of the real estate bubble, everyone assumed that home values would continue climbing, so there was nothing to worry about, right?
Wrong.
The real estate boom hit its peak in April 2004... and the majority of option ARM loans are due to begin resetting after five years. In other words... in April 2009.
In December 2008, investment fund manager Whitney Tilson told the 60 Minutes television program that he expected as many as 70% of these loans to default.
He also predicted that over the next four years, more than 8 million Americans will lose their homes to foreclosure.
And he estimated that the total damage from the collapse of the sub-prime lending market is already approaching $1 trillion... but the coming collapse of the Option ARMs and Alt-A loans (which were made to borrowers with low credit scores) could mean another $1.5 trillion in damage.
Let me put that another way...
We're already $1 trillion in the hole... and we're still not even halfway through this disaster
And it all begins to unravel in April 2009 - just a few weeks from now - when those Option ARM loans begin resetting.
Because here's what will happen:
* As we've seen consistently over the last year... the U.S. Government will step in and attempt to "bail out" the U.S. homeowner and prevent the onslaught of massive foreclosures...
* In order to do this, the government will be forced to throw even more money into the system... in what could end up being the most costly bailout to date...
* Once this begins, the stock market will take a nosedive - with the Dow heading to 6,500 or lower...
* Finally - and most incredibly - this latest huge increase in the U.S. money supply will put the United States in danger of having its own credit rating slashed!
"Here's how I did with your last two trades: AXPMQ, bought 11/12 for $2.50, sold 11/13 for $4.20 for a 68% one day gain. XJZMM, bought 11/11 for $1.56, sold 11/13 for $2.43 for a 56% gain in two days… Take care, Ryan..." In fact, Moody's warned in January 2008 that "the U.S. is at risk of losing its top-notch triple-A credit rating."
And in August, The Kiplinger Letter reported, "The idea of the U.S. losing its AAA debt rating isn't far-fetched anymore. Standard & Poor's credit rating agency says the U.S. is taking on a huge risk."
A downgrade of the U.S. credit rating would spell immediate financial disaster - instantly crippling the new administration's ability to revive the economy...
And not to mention - the overall financial chaos created will help send investors fleeing from stocks once again and back into "safe havens" such as U.S. Treasuries.
Tuesday, January 27, 2009
LOSING JOBS FAST!
In just the past 24 hours alone, Corning, Caterpillar, Home Depot, Pfizer, Texas Instruments, Sprint, GM, ING, Phillips Electronics and other large companies have announced more than 75,000 layoffs worldwide.
WORSE: So far in January, 52 large U.S. companies have announced 210,000 layoffs!
WORST OF ALL: This is just the beginning! And now, even the most optimistic of observers finally admit it. They now see the impact it will have on millions of Americans. But they don’t yet see how it could trample your investm
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WORSE: So far in January, 52 large U.S. companies have announced 210,000 layoffs!
WORST OF ALL: This is just the beginning! And now, even the most optimistic of observers finally admit it. They now see the impact it will have on millions of Americans. But they don’t yet see how it could trample your investm
NEED HELP SPONSORING OR BUILDING A BUSINESS:
http://Easystreet.MagneticSponsoringOnline.com
http://Easystreet.buildingabudget.com
http://Easystreet.blackbeltrecruiting.com
GET PAID TO DRIVE YOUR CAR, wear T-shirts, and more. Earn money effortlessly while you go about your day! It's fun, easy and no experience is necessary"!
http://www.moreinfo247.com/10479052/EE
Sell your stuff online for cash. Beats Ebay!! Try it Free with this offer!
http://www.tripleclicks.com/10479052/go
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