Economic update

[ashedfc]

US Deficit in one picture (the largest debtor nation in the history of the world), now its dragging the entire global economy into a ..................... not very good future.

[brunt]

For those who boggle at the US debt outlined above - it is actually far worse than that.

Something that is usually not counted as debt is the unfunded liabilities. This is just a fancy term for promises to pay for something in the future for which you have no money to pay at this time.

If you promised to pay your parents $1,000 one year from today, you would count it as part of your debts. You know that you have to pay it off. The US government is not like that, in that much like Wimpy in the old Popeye cartoons, they will gladly pay you Tuesday for a hamburger today.

If you add in the unfunded liabilities to the US debt, and divide by the number of taxpayers, the result is that each taxpayer's "share" is in excess of one million dollars. It is clear that this cannot possibly be paid off. In fact, if interest rates rise much at all, they will not be able to even pay the interest due on all of this.

It is really no surprise that the US had their debt rating lowered a couple of weeks ago. My only surprise is that it took this long.

[ashedfc]

For those who boggle at the US debt outlined above - it is actually far worse than that.

Something that is usually not counted as debt is the unfunded liabilities.

It is really no surprise that the US had their debt rating lowered a couple of weeks ago. My only surprise is that it took this long.

Absolutely True !! The unfunded liability will impoverish the future generation (& retirees) & it will bankrupt US. Its a future tax, for benefits already enjoyed in the past.

The only way out is Hyperinflation of the US Dollar, to inflate the debt away. Its already happening, one needs to look outside the GOVT. manipulated falsified GDP/CPI/Payroll/etc numbers & look at the real data.... (anyone visiting a grocery store has already felt - what inflation is)

We are heading into a deflation scare: the solution to this deflation scare, will be a Global massive QE (aka money printing globally) which will lead us all to hyperinflation.. (its inflation if its at a controlled level & it becomes hyperinflation when it gets beyond control).

everyone needs to prepare for this likely scenerio: which we all are gradually heading into.......... its a slow motion train wreck, spread over a couple of years into the future..

[ashedfc]

A steady rise of Gold price in the 100's is an indicative of problems in the general economy.

Tuesday, January 1, 2002 - Launch of euro notes and coins
Friday, February 8, 2002 - GOLD ABOVE $300
Monday, December 1, 2003 - GOLD ABOVE $400
Thursday December 1, 2005 - GOLD ABOVE $500
Monday, April 17, 2006 - GOLD ABOVE $600
Tuesday, May 9, 2006 - GOLD ABOVE $700
Friday, November 2, 2007 - GOLD ABOVE $800
Monday, January 14, 2008 - GOLD ABOVE $900
Monday, March 17, 2008 - GOLD ABOVE $1000
Monday, November 9, 2009 - GOLD ABOVE $1100
Tuesday, December 1, 2009 - GOLD ABOVE $1200
Tuesday, September 28, 2010 - GOLD ABOVE $1300
Wednesday, November 9, 2010 - GOLD ABOVE $1400
Wednesday, April 20, 2011 - GOLD ABOVE $1500
Monday, July 18, 2011 - GOLD ABOVE $1600
Monday, August 8, 2011 - GOLD ABOVE $1700
Wednesday, August 10, 2011 - GOLD hits $1800!!!!
Monday, August 22, 2011 - GOLD hits $1900 !!!!!!!!!!


Today is an excellent example: why Gold/Silver is a good investment, it can preserve wealth. One can even buy in their TFSA account, where all the gains are tax free..& let it stay/grow till this global financial train wreck is running its course....

The exponential rise of Gold recently is happening at a time when, other markets have tanked over 15%-20% recently, some are ready to rollover even more.....

[ashedfc]

& Here's Goldman Sachs, in serious trouble (something is wrong -very soon we all will know, what's wrong):

[ashedfc]

JP Morgan May Take Over Bank Of America within a week..

Or put it this way "Bank of America" is bankrupt & is unable to survive independently.. (its considered positive for the markets atleast temporarily)

Read more: JP Morgan May Take Over Bank Of America - 24/7 Wall St. http://247wallst.com/2011/08/23/jp-m...#ixzz1Vtta8rTH

[ashedfc]

A lower Gold price is a gift for those who missed (or haven't bought yet).... Don't chase a rally; rather buy the dips.
Enormous amount of money printing (debt monetization is coming in the near future across the globe), which will take Gold to unprecedented heights..

http://www.sirchartsalot.com/article.php?id=156

[ashedfc]

Allan Greenspan (former Federal reserve chairman) said that he did not think gold, which reached a record above $1,900 an ounce this week, was in a bubble.
“Gold, unlike all other commodities, is a currency,”

http://goldsilver.com/news/greenspan...t-in-a-bubble/

[ashedfc]

Has the Federal Reserve started Quantitative Easing: The Stealth QE (money printing) to infinity..
Please read this article: keeping interest rates at zero till mid 2013 is QE3, & on 20th Sept get ready for more, maybe QE4

For those not familiar with QE (it means printing money electronically & adding into the financial system by buying bonds/assets/mortgage/stocks/etc/.. thereby causing an increase in money supply). This increase in money supply, reduces the value of existing money in circulation, which is very inflationary. So the existing money in your pocket buys less & less everyday. This is exactly why you can see, the prices of almost everything is going up..
This kind of inflation is monetary inflation, & it has nothing to do with demand, as there is no increase in demand.
Its just more money chasing the same goods.



source: http://www.caseyresearch.com/editori...=FCB420NA0811B

[ashedfc]

Graphics Gallery: The Most Important Facts about the Global Debt Crisis
19 slides of valuable info: notice Canada on the first slide (as of now it looks manageable but risks arising out of Eurozone can shake the world financial system)

http://www.spiegel.de/fotostrecke/fo...cke-71636.html

[ashedfc]

How Canada Escaped the Global Recession



http://mises.org/daily/5583/How-Cana...obal-Recession

[ashedfc]

Fix The Banks (the root cause of the problem)
If there is one central theme to the ongoing financial crisis we face, it is an insolvent banking system. It is so bad that the accounting rules were changed (after the financial meltdown in 2008) to allow banks to value assets on their books at whatever they think they will fetch far into the future. So, the billions of dollars of underwater mortgage-backed securities and real estate sitting on the balance sheet is held at imaginary values to make many banks look solvent when, in fact, they are not. This is opposite of the way the IRS values assets. The price of something is based on what the asset is worth today. This is called mark to market accounting.
http://usawatchdog.com/fix-the-banks/

[ashedfc]

Hyperinflation in Belarus (currently happening): this is what happens when a country goes into hyperinflation: "Belarus’s supermarkets are running out of meat as Russians take advantage of a currency crisis that a devaluation and the world’s highest borrowing costs have failed to stem. “All meat has gone to Russia,” Interest rates were just hiked from 22% to 27% after devaluing the currency by 50%... its all very scary numbers (please pay attention: the risk of hyperinflation is very high & this can happen in any country) http://www.zerohedge.com/news/belaru...vorable-exchan

[oz&axl]

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Check out the website and them message me for more information if you would like a reliable source of residual income to ride the wave of economic turmoil.

[ashedfc]

Charting Two Centuries Of Business Booms And Depressions: From 1775 To 1944 (very interesting chart)

http://fraser.stlouisfed.org/publica..._busibooms.pdf