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 by Michael This is the time of the year when Americans run out to their favorite retail stores and fill up their shopping carts with lots of cheap plastic crap made by workers in foreign countries where it is legal to pay slave labor wages. By doing this, the American people are actively participating in the destruction of the U.S. economy. You see, buying products that are made in America is not [...] Advocates of spending cuts frequently argue that in order to ensure long-term economic health, the US needs to “take some pain” right now and reap the benefits later on. Partly this is due to the idea that too much debt acts as a gigantic weight on the economy going forward. Part of this thinking is just due to a general moral view that suffering is a good thing that will [...] mybudget360.com The Global Market is being held together with the veneer of massive debt duct tape. The solution for much of the European Debt Crisiswas to simply add more debt to the current situation. Solve a debt problem with more debt in other words. All this does is delay the inevitable. The hope is that somehow GDP in these countries will grow fast enough to pay off existing debts but the Amount Of Debt Is [...] While the other candidates are playing games, Paul is fighting to Restore America Now Steve Watson For the past week the media, along with GOP presidential candidates Mitt Romney, Rick Santorum and Newt Gingrich, as well as the incumbent president, have fixated on a throw away remark about an ‘etch-a-sketch’ by a Romney communications advisor. That’s right, while the economy continues its seemingly never ending spiral into a black hole, while [...] “A 30-50 year virtuous cycle of credit expansion which has produced outsize paranormal returns for financial assets—-bonds, stocks, real estate and commodities alike—-is now deleveraging because of excessive risk and the price of money at the zero-bound. We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time.”
This quote from Bill Gross’s February comment for Pimco neatly summarizes in one sentence [...] by Comstock Partners Although a number of economic indicators have recently improved, the economy is now entering a period of high risk. In their now well-known book, “This Time It’s Different”, Rogoff and Reinhart showed that once a nation’s government debt-to-GDP ratio reached and exceeded 90%, the period ahead was marked by credit crises, exceedingly slow growth and frequent recessions. The latest example, among many, is the experience of Japan in the [...] Ron Hera Earlier this week I attended the Utah Monetary Summit in Salt Lake City, Utah. As you may know, the state of Utah passed a Legal Tender Act earlier this year authorizing the use of federally minted gold and silver coins as money in the state of Utah. Now, legislators in other states, many of whom attended the Monetary Summit, are evaluating similar legislation. Among other things, this means [...] Anyone aware of the US Government’s real financial situation knows that time is running out. The Government has $15.5 trillion in admitted debts but those debts, when calculated under Generally Accepted Accounting Principles (GAAP), or ‘honest accounting’, is over $70 trillion. $70 trillion divided by 300 million+ Americans works out to $233,000 per person in US Federal Government debt and obligations. Or nearly $1 million [...] This coming May 16, the U.S. Federal government debt ceiling will be breached; that is, the national credit card—currently topped at $14,294,000,000,000—will be maxed out. (Yeah, I know: It’s one thing to read “$14 trillion” and quite another to see the actual number, written out with all those zeroes.) Shortly thereafter, the Federal Reserve’s policy colloquially known as Quantitative Easing-2 (QE-2)—whereby the Fed created $600,000,000,000 of new money, and [...] Last week, the Federal Reserve Board (FRB) released its updated Flow of Funds data series, which tracks US debt. The current release of the Z.1 time series goes back to 1976 and provides quarterly figures since 2004. (see here) http://federalreserve.gov/releases/z1/Current/ The most recent financial crisis, fed by excessive debt accumulation, is now in the de-leveraging phase. The Federal Reserve is now the de-facto lender to many debt market segments, while other parts [...] Total Consumer Debt (including mortgages, car loans, and credit card debt and interest) Source Jim Quinn’s Burning Platform and I used it in my last [...] |
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