>>> BANKRUPT U.S.A <<<

Like Bush and Cheney and the all the rest didn't have clue,,you figured it out,,and they didn't.Your so smart and their so dumb,yea right...

CNN Your Money: John Williams from www.Shadowstats.com on the next Great Depression.

[link to www.youtube.com]

CNBC ARE SUCH CRETINS.

They Still Don’t Get It.
by Peter Schiff

[link to www.gold-eagle.com]

Foreclosures in America.

As America's mortgage mess worsens, radical solutions are gaining appeal.

[link to www.economist.com]

Global Elites Gone Bonkers
[link to www.americanchronicle.com]

[link to www.europac.net]
The Bubble is Bursting - Peter Schiff.

[link to www.ft.com]

IMF tells states to plan for the worst.
by Krishna Guha in Washington
March 12 2008

Governments might have to intervene with taxpayers’ money to shore up the financial system and prevent a “downward credit spiral” from taking hold, the International Monetary Fund said on Wednesday.

John Lipsky, the IMF’s first deputy managing director, said: “We must keep all options on the table, including the potential use of public funds to safeguard the financial system.”

The statement by the senior IMF official marks the second radical policy intervention from the IMF this year. It had previously called on governments to consider using fiscal policy to offset the impact of the credit crisis on growth.

Mr Lipsky said: “I fully recognise an appropriate role for public sector intervention after market solutions have been exhausted.”

He urged policymakers to “think the unthinkable” and prepare now for what they would do if the worst case scenarios materialised and “low probability but high impact events” threatened to jeopardise global financial stability.

He warned of the risk that a “global financial decelerator” could take hold, in which rising defaults and margin calls from lenders triggered forced asset sales, driving down the value of collateral and forcing further forced sales.

The IMF deputy managing director’s comments make it clear that the fund is open in principle to the possibility of taxpayer-funded intervention in the market for mortgage securities as well as intervention to save individual banks from bankruptcy.

Mr Lipsky warned: “The risks of further escalation of this crisis are rising and decisive policy action will be needed.”

He said this crisis was different from recent past crises because both the financial markets and the banking system “have faltered simultaneously”. The first priority had to be to reverse the “spreading strains” in global financial markets and restore the functioning of the financial system in advanced economies.

Mr Lipsky said there should be no let up in the pressure on financial institutions to disclose losses but said pressure to deleverage “needs to be kept orderly”.

He also urged banks to recapitalise to avoid shrinking their balance sheet.

Stressing that this was a global problem – not one confined to the US – he said it would have to be addressed in a “global ­context”.

Mr Lipsky said the “first line of defence” remained monetary policy and interest rates. But monetary policy was “hampered” by problems in the credit markets and “there is a risk of a broader and more intense tightening in credit conditions”.

This was why the IMF was making the case that “there is likely to be a role in some countries for stepped-up counter-cyclical macroeconomic policy measures to help support demand”. Fiscal policy was the “second line of defence”.

But Mr Lipsky said “macroeconomic policies may not be sufficient to cushion the blow if an extreme event occurs” – making it essential that policymakers prepared for the possible need to intervene.

-------------------------------------

[link to www.jsmineset.com]
March 13, 2008

Economic Forces Converge Like Never Before.
~Jim Sinclair

Dear Extended Family,

Never in economic history has there been a night like tonight. I am writing later than usual because of the enormity of all the converging forces. The euro reaches for $1.60, the Middle East oil producers are in shock, and the IMF tells the world to “plan for the worst.”

The reason this missive is late is because I am reverberating at the speed of the disintegration. These cursed OTC derivatives and their makers, who incidentally made the international banking community rich beyond your wildest dreams, are now unwinding at lightening speed.

Do you think any entity with any OTC derivative now has faith in the paper?

This paper is $550 trillion plus dollars in notional value. The horrible fact is that in bankruptcy notional value becomes real value with the capacity to destroy the world financial system.

The above is no wild assumption. It is hard, cold fact.

Expect currency intervention to slow down the rise of the euro.
Intervention has never worked. It will not now. In fact, it will backfire so fast that the effort will be abandoned, making things even worse.

Intervention in currency, the dollar, will only provide the capacity for other central banks, oil producers and holders of high risk long US treasury paper to diversify out in huge amounts of decaying dollars at singular prices.

I could go through a tome on how intervention works, but accept that any rise in short rates will break the bank immediately. Intervention in the euro/dollar is another practical impossibility except as a bluff.

There is no practical solution to today’s TERMINAL problems and that means you are up to your eyeballs in alligators.

You must protect yourselves.

Gold is going to $1650. In all probability my major error will be in forecasting a price that is much too low for gold.

This is it.

Your concerned friend,
Jim

==============================================

And so it REALLY begins ...

David M. Walker was the recent the Comptroller General of the United States.

He has just retired, and he's now going around the US warning that the citizens and Washington must do something about the unfunded liabilities of the US.


How the U.S. Can Avoid a Fiscal Wreck.
-------------------------------------
by David M. Walker

A growing number of people believe that we could be heading for a recession, if we are not already in one. In response, Congress has passed an economic stimulus plan, the Federal Reserve has cut the discount rate and the Bush administration has moved to try to steady the housing market.

Yet America faces much greater, and largely unaddressed, economic challenges that threaten to erode our economic strength and future standard of living. Key among them are our incredibly expensive and badly broken health care system and the upcoming retirement of the baby boomers. Both will require enormous government outlays in the years ahead.

Difficult and even unpopular choices are needed to turn things around.

In my view, we have a 5 to 10 year window of opportunity to act. If policymakers don't, it is only a matter of time before interest rates begin to skyrocket and the U.S. debt is reduced to "junk bond" status. Higher interest rates will have an adverse effect on the federal budget, on the economy, on the finances of American households and potentially on the relative standard of living for most Americans.

The U.S. government's total liabilities and unfunded commitments for future Social Security and Medicare benefits and other items are estimated at $53 trillion, up from about $20 trillion at the start of this decade, and are rising at a rate of $2 trillion to $3 trillion a year.

This fiscal gap translates into an IOU of about $455,000 for every American household. In other words, our government has made a whole lot of promises that it will be hard-pressed to keep without increasing taxes to levels far beyond what the American people have tolerated historically.

By refusing to make tough choices and by charging up the nation's credit card, we are mortgaging the future of our children and grandchildren.

Watching the Dollar Die.

[link to www.informationclearinghouse.info]

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.

A major crash could affect gold and silver as well.

There's a lot of hot money in them atm and if they need to liquidate in a hurry ...

It's an Election year!

THIS:

"Don't be so F'in ' fooled by the MASS MEDIA again. This moment is being stolen again by the elite who control the market. DON'T BELIEVE THE HYPE! When they say sell, for fuck sakes, YOU BUY! How many times are they going to rip you off before you get it? Do the opposite! Don't follow, LEAD! Stop fuckin' doing what they they tell you to do. Snap out of it already! The Amorican economy is about to begin another BULL RALLY! I cannot tell you how long it will last, but when they begin to tell you, again, to BUY MORE, that should be your que to SELL. GOT IT? NO... Then ,read this my post again, and again..."


PLUS

Movements of EURO's into the US now:

EQUALS:

a BULL RALLY!

When they say BUY...SELL...try it , you'll like it!


HT1

The international debt alone that the U.S. owes is about 75 trill (give or take a trill). They will NEVER be able to pay even the interest on that principle.

In geometry fundamental assumptions are made; these assumptions are called "axioms."

If an axiom is written that is in any way - even minor - flawed, then all successive conclusions are false.

The errors in economics are of the axiomatic variety.

The Kondratieff cycle is all about the periodic failure and regrouping of economics. When the breakdown and repair portion of the cycle happens we have an opportunity to completely redesign the system.

For clues on how to rethink economics, read this thread including the links: Thread: Get rid of the money system, then get rid of goverrments

Levi Philos

Why yes, we certainly will if we don't stop bailing out the failing economies of the EU!

The US is still far and away the biggest contributor to the IMF which just bailed out Greece and cost us a cool billion we could and should have used ourselves.

Soon to be followed by Portugal, Spain and Italy. If we do the same thing in each of those countries, we could well go bankrupt through no fault of our own other than bailing our loser economies of the EU!

Remember, it's mutually assured destruction.

Last Edited by Bluebird on 06/01/2010 12:59 AM