Economic update

[ashedfc]

True, Greece is a real example of what's coming in the future to other places..

Here's something very interesting..
19 Crazy Things That School Children Are Being Arrested For In America

http://endoftheamericandream.com/arc...for-in-america

[newb]

Some shocking stats....Canada don`t look so good now.
http://www.usdebtclock.org/world-debt-clock.html

[Cheapster1977]

2012 will be interesting I figure Greece and other euro countries will go bankrupt sending silver and gold to record highs

[ashedfc]

Hungary's needy given money to burn (Hungary previous hyperinflation has a hidden lesson everyone should learn from; "Money has become so worthless that burning it is a viable option).

http://www.youtube.com/watch?v=pAkrj...layer_embedded

[ashedfc]

deleted

[ashedfc]

Russia Dumps Treasurys For 14 Consecutive Months "Currency war has already begun"

so is China (gradual dumping of US treasuries)
http://www.zerohedge.com/sites/defau...ings%20Dec.jpg

[newb]

Ash..can you elaborate or give links for info to the bond bubble that you mentioned in the mortgage thread ? That tidbit reallt piqued my interest. ..thanks
thought I read somewhere that bonds busts lead to wars and inflation leads to poverty...not sure tho

[ashedfc]

Ash..can you elaborate or give links for info to the bond bubble that you mentioned in the mortgage thread ? That tidbit reallt piqued my interest. ..thanks
thought I read somewhere that bonds busts lead to wars and inflation leads to poverty...not sure tho

Bonds have a unique relation to interest rates.. When interest rates go down, Bond price goes up (which gives investors an increase in the value their investments in bonds). And inversely when interest rates goes up than Bond prices fall, & Bond investors loose money. Over the last couple decades interest rates have only gone down, which has benefited bond investors. And substantial capital is piled up in bonds. The interest rates have not only going down, so much so, that they have reached the ultimate bottom zero (yes 0% in US). Can it go below zero; NO; in other words it has only one way to go "that is UP"... so what happens when interest rates start going up. Bond investors loose money, creating more sales & more losses. This is exactly what happens in an inflationary environment.
This graph gives is the interest rate from 1790 till Nov 2011.. (watch the downward trend since 1981... & its probably hitting the bottom; what happens when it turns & start going upwards; 30 years of Bond bubble in the making starts to bursts). Inflation is already picking up & momentum & its clearly visible to anyone who visits grocery stores.
http://jugglingdynamite.com/wp-conte...since-1790.png

Caution is warranted to all bond investors.
Once inflation picks up steam, its very difficult to control it.
The only way it can be controlled is by raising interest rates..... which in itself is destructive when you have everyone (Govt./ public/ private/ corporate/ household) all loaded up on debt of all kind..
Regarding your quote on War & Inflation - in my opinion, inflation is clearly visible & War is probably unavoidable now.. several powers are determined to follow that route... though future will tell, 2012 is very crucial year. Found this post interesting (please read this) http://www.alt-market.com/articles/5...s-invades-iran

[ashedfc]

When Risk Is Disconnected From Consequence, the System Itself Is at Risk

http://www.oftwominds.com/blogfeb12/...uence2-12.html

[newb]

The last 2 links were eye openers... thanks ashedfc....seems like we`re walking into something no one really wants.
Read somewhere that every decision gov`ts makes...makes sense at the time it`s made but in reality it brings it all crashing downin the end. Was a comparism to the Roman empire and today.
I read alot but never remember where I read it.

[ashedfc]

Thanks nweb..
This one just came in & its one of my favorite "Please read this"
"Unintended Consequences"
http://www.sprott.com/media/108878/0...nsequences.pdf

[ashedfc]

& another interesting read..
"Why Rising Debt will lead to $10000 Gold"
http://www.bmgbullion.com/doc_bin/1....%20gold%20.pdf

[mnogt]

great

[ashedfc]

‘America’s Per Capita Government Debt Worse Than Greece,’ as well as Ireland, Italy, France, Portugal, and Spain:



& we are blaming Greece (rather Greece is made the scapegoat for this financial mess the entire Globe is in)..

[ashedfc]

Will the US Dollar (or the existing fiat monetary system) Hyperinflate.. http://blog.milesfranklin.com/fiat-failure