Keiser Report №77: Global Debt Collapse

This time, Max Keiser and co-host Stacy Herbert look at emails from viewers on their "Peak America" moments and then check out the scandals of the Irish choice of being "good Europeans" or "bad Europeans", as a result of bankers offering only "bad banks"; while Iceland refuses to settle at any price. In the second half of the show, Max goes Down Under to talk to economist Steve Keen about the global debt collapse.

Keiser Report 65 – Markets! Finance! Contango!

This time Max Keiser and co-host Stacy Herbert look at the latest scandals of box office manipulation in China, $9 billion missing in Iraq and contango in commodities. In the second half of the show, Max talks to Internet sensation George Hemminger about his experience with financial collapse in America.

An Excerpt From Bob Chapman's "The International Forecaster" Both In Europe and in the US the Markets will go down soon

http://theinternationalforecaster.com/International_Forecaster_Weekly/White_House_Pushes_for_a_Wall_Street_Overhaul
Both In Europe and in the US the Markets will go down soon says Bob Chapman The International Forecaster the rally in the dollar is over, they will take down the banks one after the other and then they will nationalize them explains Bob Chapman , The European countries will go back to their former national currencies ..the Euro will be History......excerpt from the international forecaster of 14 July 2010 : The U.S. trade deficit hit its widest level in a year and a half, as increased imports from China more than offset growth in exports, an imbalance that is weighing on the tepid economic recovery.


The U.S. trade deficit, the difference between exports and imports, increased 4.8% to $42.3 billion in May, the Commerce Department said Tuesday. That was the widest since November 2008. April's trade gap was revised upward from earlier estimates.
U.S. exports grew 2.4% to a 20-month high of $152.3 billion. Imports grew faster, expanding 2.9% to $194.5 billion."

Surviving Economic Collapse Tips Tactics & Gear

http://www.shtfplan.com/emergency-preparedness/surviving-economic-collapse-tips-tactics-and-gear_01302010

The Economic Collapse Part 1

With the exponential growth of debt and derivatives, a sovereign debt default could trigger economic shock waves that would make the previous 2008-09 economic collapse look like the pre-shocks of a much larger earthquake. This video presents one possible scenario on how a dollar collapse would affect one family.

World Economy Collapse explained in 3 minutes‏

Gerald Celente: Go for the gold! In The Global Financial Currency Crisis

As the economy continues to struggle, the dollar has become more of an issue with its unstable behavior. Gerald Celente says that the dollar is an unreliable international currency and should be replaced by a more stable system. He also adds that the only stable market is gold, as the economy worsens gold's value will continue to increase.

Please Read the entire thing this is important Struggling and Faltering to Manage Economic Recovery by Bob Chapman The International Forecaster June 3

Bob Chapman (click to read his bio)

http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Struggling_and_Faltering_to_Manage_Economic_Recovery
No Austerity, full steam ahead, Faltering markets, threats to social stability, Europe struggling with PIIGS, No end in California, economic disasters in the making, an oil soaked letter in Louisiana, consumer spending is uninspiring,

Last week the Dow fell 2.9%; S&P 3.6%; the Russell 2000 3.3% and the Nasdaq 100 fell 3.9%. These numbers should make for a lower opening on Monday. Banks fell 1.7%; broker/dealers 2.2%; cyclicals 3.5%; transports 4.3%; consumers 4.1%; utilities 4.3%; high tech 4.6%; semis 5.2%; Internets 4.2% and biotechs 1.7%. Gold was unchanged; the HUI fell 0.2% and the USDX fell 0.4% to 85.32.

Two-year T-bills fell 8 bps to 0.61%; the 10-year notes fell 11 bps 3.11% and the 10-year German bund fell 12 bps to 2.61%.

The Freddie Mac fixed rate 30-year mortgage fell 6 bps to 4.69%, the lowest rate since 1971. The 15’s fell 7 bps to 4.13%. The one-year ARMs fell 5 bps to 3.77% and the 30-year jumbos fell 6 bps to 5.52%.

Fed credit rose $6.3 billion, up $108 billion YTD, or 10.1% and 16.6% YOY. Fed foreign holdings of Treasuries and Agency debt rose $10.1 billion to a new record of $3.090 trillion. Custody holdings for foreign central banks increased $135 billion YTD, or 9.5% annualized and YOY $326 billion, or 11.8%.

M2, narrow, money supply fell $37.5 billion to $8.564 trillion. It increased $52 billion YTD and YOY 1.4%.

Total money market fund assets rose $12 billion to $2.818 trillion. YTD they have fallen $476 billion, a one-year decline of $891 billion, or 24%.

The Fed Chairman Ben Bernanke tells us the American recovery is struggling because of European austerity. Does he really expect us to believe that? There is no question austerity in Europe will lead to a deflationary depression. Unemployment will rise quickly, which means major cuts in government spending and lessened revenues. Beside the public those affected the most will be towns, cities and states, many of which are on the edge of insolvency surprisingly even in Germany. The PIIGS unbelievably say their instability and debt is the result of the deflationary economic policies of the richer euro zone members. Germans and others are saving, agreeing to low salaries, producing more and not increasing debt. On the other hand the PIIGS and others were headed in the other direction. This is why the euro is doomed. After destroying their economies with one interest rate fits all, they are quick to blame others. Then again the bankers should never made the loans they did either. The result is deflationary depression, which is just getting underway. It is proper for Europe to use austerity, but it is a big mistake to raise taxes. That leaves little for the populace to spend to keep the economy going.

The US is determined to take the opposite tack. No austerity and full steam ahead. This in spite of the fact that the economy is faltering, especially in real estate, both residential and commercial. It is so bad that they have obscure government agencies buying mortgages. These new buyers plus Fannie, Freddie, Ginnie and FHA have been buying 95% of mortgages. Without massive stimulus and or Fed monetary expansion we will definitely see negative GDP growth in the last quarter of 2010. The indicators are in place and the tell tail signs of retrenchment abound. Wall Street is about to give up the ghost and see a test of the March 2009 lows. We are sure there will be rallies as the Fed unleashes trillions more in money and credit that as well will produce much higher inflation. This could produce $5,000 or more gold and a 5,000-point Dow.

As you are now well aware Fannie and Freddie are going to punish people who have stopped paying their mortgages, who can pay them, and who are paying other bills instead. This leaves lenders with foreclosures and much more inventory than they ever imagined. This additional problem will bring on the double dip that Wall Street and Washington so fear. As a result of this and other failures we are about to experience the worst economic collapse since 1348. The stock market is topping out readying itself for its most disastrous fall in history. The fall will be followed by years of depression, all of which has been deliberately created to bring the world economically and financially to its knees in an attempt to bring about world government by Illuminists. Some market analysts understand where the market is headed, but most who do understand, write and talk about the mundane observable trappings and not what the situation is really all about. We have several analysts talking about a market collapse. They do not talk about the real forces behind our misfortune. We recently watched an interview of a man who wrote about the Bush family. His only admission was that they were players in the game controlled by other forces, which he refused to mention. He wouldn’t say what they were up to and who they were. This shows you how terrified writers are who are confronted by the power of the Illuminists.

There are always these lone voices in the wilderness, which at best – some 15% of the populace – listens too. You had better listen this time because it could well cost you not only your assets, but your life, especially when another war is being prepared for you to engage in. Nothing is really as it seems to be and there are no coincidences. You are about to enter a world of chaos from which few will survive unscathed. A world of no banks, no public facilities, no food and rampaging gangs of desperate people. Unemployment of 50% and little law and order. Violence will be rife. This is not a pretty picture, but we have spared you the details. The world had better wake up fast so they’ll be prepared to deal with what is to come. If you were not aware of it the dark side really exists. We also want to remind you that for more than 20 years we have been almost totally right, and we have made some stupendous calls.

We are now entering the next to last phase of our journey. The wanton creation of wealth, inflation and perhaps hyperinflation, which will rob you of your assets. A stealth attack on what you have left by the people who control your government. Such monetary creation is the only way these people can keep the game going. They know it won’t last, but they proceed anyway. For awhile they’ll keep the multitudes at bay with extended unemployment and food stamps, but that will fade in time for lack of financial control, as the system begins to break down.

You already see all fiat currencies under fire, as is sovereign debt. Can it get any worse? Of course it can, and it will. Implosion is the word everyone is going to discover and understand. An event that cannot be hidden by zero interest rates and endless supplies of money and credit. That word implosion will describe what will happen as a result in the machinations of the Federal Reserve.

Now that you have seen a glimpse of your future we will move on to the deteriorating world that we now live in.

CNBC and the mainline media tells us all is well irrespective of a failing recovery, climbing unemployment, which has just recently been assisted by trillions of dollars in stimulus. The question is what comes next? More of the same, of course. There is no other avenue to pursue even though Mr. Bernanke knows such stimulus is not going to get the desired results. These players behind the scenes know history. They know what we know. They depend on 98% of the people not discovering what they and we know, and that is where this is all headed. The important people in Wall Street, banking, insurance and in transnational corporations know, but they are not about to tell you. The market doesn’t like what it sees, but it knows it cannot do much about it.

Americans are fighting back as millions have not made mortgage payments for a year and are living for free in their homes. As an antidote Washington is now considering charging them rent, something they should have done four years ago. If you add in the disaster that is commercial real estate, personal and corporate debt, and sovereign debt, you have an insolvable problem that can only end in great grief. The choice to expose Greece’s weaknesses from behind the scenes looks to be a fatal mistake. The elitists never envisioned the firestorm that the exposure has led too. Greece is about to explode, not because of the reduced socialist benefits, but because the people are finally realizing that they and others have been taken for a ride by the bankers and others behind the scenes and from within their own government. Discovery by the Greek people and others is not something the illuminists expected. They now are forced again to expedite their programs - when they have to do that they make mistakes, often-big mistakes, which gives us pursuers an advantage we could never hoped to have had. After their latest mistakes the bankers are scrambling to preserve the current system. It is not to be. There are far to many who now know what they are up too.

Europe is still struggling in an attempt to bailout the PIIGS, which if they take the loans they will live in financial bondage and depression for the next 30 years. We told the Greek people in a TV documentary last week to default, leave the euro, create the new drachma, lower taxes, make sure the rich pay their taxes, cut expenses in government by 30% and do not under any circumstances sell off any Greet assets, such as islands and utilities to foreign Illuminists for 20 cents on the dollar. The bankers created the money they lent out of thin air, so why should they be repaid. In addition they knew the risks and should have never made the loans in the fist place. The Illuminist-Bilderberg PM should be impeached for trying to destroy the country.

There is talk of a new northern euro to replace the current unit. Such a unit would need gold backing. Germany asked for the return of their gold from the US about a year ago. As far as we know they haven’t received it. The question then is, how do they back such a currency? France has sufficient gold, but they are in serious economic and financial trouble. We don’t think a northern euro is viable. Denmark is mentioned as a partner, a country that twice has rejected the euro. They also have serious problems. If the 5 PIIGS default how much bad debt will these nations be stuck with - $1 trillion or $2 trillion? That certainly is a salient factor in any new currency decision, and it is very possible default could become reality. Deficit reduction and austerity are not solutions without tax cuts. That is unless you want years and years of recession/depression. The public has to have money to spend to keep economies going. That isn’t a purge, but it is as close as you are going to get for the present.

Just headlines: "the audit board violates constitution, Supreme Court finds." As Reuters explains: "At stake in the case is how corporate America is audited and a key provision of the Sarbanes-Oxley corporate reform law adopted in 2002 in response to the Enron and WorldCom accounting scandals. If the Supreme Court strikes down the board, the ruling will put pressure on Congress to revisit the law, opening it up for potential changes in the reporting duties of companies." Then again, who even pretends we have remotely credible filings anymore? With FASB indefinitely locked in the basement and companies allowed to report their numbers on a mark-to-unicorn basis, it is all lies anyway.

Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or prevent another crisis, analysts said. A deal reached by members of a House and Senate conference early this morning diluted provisions from the tougher Senate bill, limiting rather than prohibiting the ability of federally insured banks to trade derivatives and invest in hedge funds or private equity funds. Banks ‘dodged a bullet,’ said Raj Date, executive director for Cambridge Winter Inc.’s center for financial institutions policy. The overhaul, which still requires approval from the full Congress, won’t shrink banks deemed ‘too big to fail,’ leaving largely intact a U.S. financial industry dominated by six companies with a combined $9.4 trillion of assets. The changes also do little to solve the danger posed by leveraged companies reliant on fickle markets for funding, which can evaporate in a panic like the one that spread in late 2008.

Fannie Mae will temporarily deny new loans to borrowers who deliberately default and walk away from their homes. Borrowers who have the means to make mortgage payments and don’t work with lenders to restructure loans will be banned from obtaining new mortgages backed by Fannie Mae for seven years from the date of foreclosure, the company said. Fannie Mae, along Freddie Mac, own or guarantee more than half of the $10.7 trillion U.S. mortgage market.

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end. Unemployment was 12.4% in May. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone. Even as the U.S. appears to be on the mend finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities. ‘States are going to have to cut back spending and raise taxes the same way Greece and Spain are,’ says Dean Baker, co- director of the Center for Economic and Policy Research.

May personal income rose 0.4%, the PCE price deflator rose 1.9% and April personal income was revised to 0.5% from 0.4%. Spending rose 0.2%, real disposable income rose 0.5% and savings rose to 4%.

The Chicago Fed Activity Index was 0.21, down from April’s 0.25 and way down from 0.32 expert estimates.

The June Dollar Fed Manufacturing Index was minus 4%, down from May’s 2.9% and a 3.2%expert estimate.

The Friday Night FDIC Follies made a repeat when three more banks closed to total 86 YTD. We could get close to 100 by the end of the year.

Fannie Mae and Freddie Mac, the housing-finance companies supported by U.S. taxpayers, should take advantage of demand for government-backed mortgage debt and sell their holdings, according to Pacific Investment Management Co.

“Since the government’s going to want to unwind them at some point anyway, why not do it at the best levels ever?” Scott Simon, the mortgage-bond head at Newport Beach, California-based Pimco, manager of the world’s biggest fixed- income fund, said in a telephone interview. “It’s good for taxpayers, good for stakeholders, good for everybody.”

The average price of the $5.2 trillion of so-called agency mortgage bonds guaranteed by Fannie Mae and Freddie Mac or federal agency Ginnie Mae rose last week to an all-time high of 106.3 cents on the dollar, according to Bank of America Merrill Lynch’s Mortgage Master Index. The Federal Reserve said today it would replace its contracts to take delivery of certain bonds with other debt, reflecting a lack of supply in the market.

Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or prevent another crisis, analysts said.

A deal reached by members of a House and Senate conference early this morning diluted provisions from the tougher Senate bill, limiting rather than prohibiting the ability of federally insured banks to trade derivatives and invest in hedge funds or private equity funds.

Banks “dodged a bullet,” said Raj Date, executive director for Cambridge Winter Inc.’s center for financial institutions policy and a former Deutsche Bank AG executive. “This has to be a net positive.”

Hashed out almost two years after the worst financial crisis since the Great Depression, the legislation shepherded by Senate Banking Committee Chairman Christopher Dodd and House Financial Services Chairman Barney Frank places limits on potentially risky activities such as proprietary trading or over-the-counter derivatives and gives regulators new powers to seize and wind down large, complex institutions if needed.

For the last several months, Princeton professor Paul Krugman has become increasingly agitated about what he feels is a disastrous mistake in the making -- a sudden global obsession with "austerity" that will lead to spending cuts in many nations in Europe and, possibly, the United States.

Krugman believes that this is exactly the same mistake we made in 1937, when the country was beginning to emerge from the Great Depression. A sudden focus on austerity in 1937, it is widely believed, halted four years of strong growth and plunged the country back into recession, sending the unemployment rate soaring again.

In Krugman's view, the world should keep spending now, to offset the pain of the recession and high unemployment--and then start cutting back as soon as the economy is robustly healthy again.

Those concerned about the world's massive debt and deficits, however, have seized control of the public debate, and are scaring the world's governments into cutting back.

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.

Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.

Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone.

Even as the U.S. appears to be on the mend gross domestic product has climbed three straight quarters -- finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

Louisiana Economic Development Secretary Stephen Moret sent a letter to SBA Administrator Karen Mills complaining that the SBA is using its normal loan approval processes even though the circumstances are extraordinary, and that the agency is turning down far too many Louisiana businesses because of "credit concerns" or because they can't prove they'll be able to repay quickly.

Moret wrote that hundreds of the 21,000 claims filed with BP for losses due to the oil spill come from struggling small businesses, and most of them need the SBA loans to carry them through until they receive payment from BP.

But, he noted in the letter, SBA has informed him that 70 percent of those applicants have been denied.

Moret wrote that his office has been trying to work with SBA officials and was told that the federal agency could change its usual policy to soften underwriting guidelines and to consider the promise of future BP payments "in lieu of SBA's normal process for assessing credit history and repayment ability."

But that apparently hasn't happened. Moret noted that a similar process was used by SBA to help businesses after the Exxon Valdez tanker spill in Alaska in 1989.

SBA Assistant Secretary Jonathan Swain told The Times-Picayune that his agency typically approves more disaster loans as it goes along, and with a 30 percent approval rate now, SBA is already approaching its five-year average of 35 percent.

Uninspiring consumer income and spending data have pushed US stock futures ever so slightly into the red, as uneasiness over the US economic recovery lingers in the minds of investors. With less than 30 minutes before opening bell on Wall Street, all leading indices are nearly flat with the DOW off 0.06%.

Market sentiment remains fragile despite the weekend pledge by G20 leaders to reduce national deficits and debt. While waning off stimulus spending is looked upon highly by the investors, the fragility of the economic recovery is in the front of everyone’s mind with fresh austerity measures possible interfering with positive growth prospects. And as lackluster data continues to pour in from the US, investors are now questions the durability and pace of the recovery in the world’s largest economy with whispers of a double dip recession being heard more and more often.

Eight individuals were arrested Sunday for allegedly carrying out long-term, "deep-cover" assignments in the United States on behalf of the Russia, the Justice Department announced today. Two additional defendants were also arrested Sunday for allegedly participating in the same Russian intelligence program within the United States. Some of the Russians adopted Irish names in their spy work, including using the names Murphy and Foley.

Information they were seeking was pretty broad based but it included at least one report about gold. Moscow relayed back to the spies that the gold report was "very valuable" and reported that it was passed on to Russia's finance minister.
Also, according to the complaint, one spy, "Cynthia Murphy," was developing a relationship with a prominent New York financier. The financier is apparently a big political money raiser and has a close friend in the Cabinet.

The most interesting question is, of course, what kind of information could the spies have turned over about gold that Moscow deemed as "very valuable"? And let the guessing game begin as to who the "prominent New York financier" is.

It should also be noted that this decade long investigation was publicly revealed just days after Obama and Russian President Medvedev shared hamburgers together.

Central Banking in Crisis: Some Twenty Countries on the Verge of Insolvency Market Volatility as the Debt Implosion Continues by Bob Chapman

Central Banking in Crisis: Some Twenty Countries on the Verge of Insolvency
Market Volatility as the Debt Implosion Continues

by Bob Chapman The International Forecaster

Cycles were created for the accumulation of wealth. A boom occurs and you get wealthy from investments on the way up and even wealthier on the way down, because the elitists are controlling the supply of money and credit and interest rates. That is the real underlying mission of the Fed, which is owned by banking and Wall Street. All the power to control markets and create inflation and deflation lies with the Federal Reserve. Politicians do not create monetary policy, the Fed does. The politicians do as they are told. They know from time to time there will be economic pain, but the payoffs are so good they learn to live with it.

This time the damage is so bad that the Fed has been forced to monetize trillions of dollars of debt. The disease this time has spread to Europe with the ECB, using, quantitative easing by simply creating money out of thin air. That is something they said they would never do. The only real liquidity in Europe is emanating from the ECB and the Fed. We believe that eventually countries will fail, as Iceland has. You know all the possible victims. There are presently 20 of them including the US and UK . Three-card Monte games do not last forever. If liquidity is that scarce then where is the money coming from? The only place it could be coming from is the Fed. Not only is a $2 trillion bailout in process, but also as banks and thrift institutions fail stress tests some will be bailed out by being absorbed by other supposedly solvent institutions. When that option is gone then governments must bail them out. When the monetization hits the entire system collapses. After 50 or more years in this business we believe the system is definitely going to fold.

All the central banks involved are broke or virtually broke. If they are not broke why is their condition a big secret? The Bundesbank told Spain last week that we do not want stress test results made public. The reason obviously was because of the sad condition German banks are in and their penchant again to keep everything secret. These are the same people who want a one-world currency in the form of an SDR, which is worthless, because it has no backing. It is just another fiat currency. They all are in such bad shape they cannot even sterilize their interventions. The new trillions we see in the system in Europe and the US cannot be sterilized.

In England we see the Bank of England financing and monetizing the UK budget deficit. The alternative is financial collapse. The UK is in such terrible shape that they refused to partake in the almost $1 trillion bailout of the euro zone PIIGS. Recently the Fed bought $1.25 trillion in toxic waste and $800 billion in Treasury paper for over $2 trillion dollars. Adding to the incompetence and desperation, the ECB is buying the toxic debt of euro zone that are on the verge of bankruptcy. All entities are extending their debt buying programs with money they do not have and for people that can never pay the debt back. The central banks do not care as they save the financial institutions. The citizens are an afterthought. Not one of them wants to give up their power base. They don’t want to declare insolvency – they want the public to pay their debts. Weimar wasn’t much different, except it wasn’t caused by German greed, but by the vengeance of its enemies to bring about a war worse than the war to end all wars. This time it is propelled by greed and a quest for world government.

The result of all this is that some 20 major countries are on the edge of insolvency, not to mention scores of other countries. We see one funding crisis after another. Even major countries can’t sell their bonds even with higher than normal yields. Interest rates are close to zero. We suppose they could go into minus territory, where they would pay you to borrow money. Don’t laugh, it has happened more than once. It was also not uncommon to see negative lease rates, as countries engaged in the suppression of gold prices. Governments do anything they want. This same state of mind exists in increases in money and credit. Presently almost all governments are in trouble. If they haven’t made a dog’s breakfast out of their own economies they have bought bonds from those who have and stand to take stiff losses. Look at the euro zone’s almost $1 trillion bailout of the PIIGS. Do you really think those bonds will ever be paid off – we don’t. It is this concept of interconnectivity that as the players are finding out it is a disaster. How can solvent European countries even contemplate a $2 trillion bailout for nations that really do not care if the debt is ever paid off? That is how today’s world turns.

We fall back on a very important underlying concept and that is if you do not understand what is really going on behind the scenes you can never get the right answers and conclusions. People talk about cycles and super cycles as if they occurred out of nowhere. They all happen by design. As an example, the economy has improved, but that is because of $800 billion in stimulus and Fed spending. The growth that evolved was tepid at best. Now that the economy is trailing off, the stimulus having expended itself, and the question is what comes next? The only way to stave off recession/depression is to have another stimulus plan. That, of course, doesn’t affect the root causes - it just gains time.

In this debt parade we find it interesting that but for one source, we see no mention in the media of America ’s contribution, via the IMF, of some $60 billion. The frauds and criminality continue unabated. Nowhere do they tell you that among the biggest speculators were the banks that you are being forced to bailout.

Over this past year we have seen a stampede into corporate and Treasury bonds, at miniscule yields, due to the perception that bonds are safer. These investors are in for a big surprise as banks and other professionals start to factor in the risks involved, which throw off such poor returns. As the world economy runs out of stimulus and liquidity that has been chocked off by central banks, the realization will be that the prospects of countries and corporations have been severely diminished. GDP is falling and could in many countries, led by the US , should be negative for the last two quarters of the year and beyond. There is no safety in bonds, particularly municipals. Bonds are in a bubble, as many will soon discover. If income falls the ability to service bonds gets more difficult, both by government and corporations. While these myriad problems exist our Congress grovels before the political masters of Wall Street, banking, insurance, big Parma and transnational conglomerates. Pricing of risk is now impossible, which means risk rises exponentially. Eventually this reality will make credit harder to access as we move into the future.

What is important more than anything else are jobs and those who create them cannot easily borrow money. At the same time free trade, globalization, offshoring and outsourcing kill our jobs and fill the coffers of transnational conglomerates that keep their profits tax-free offshore. You cannot do that. While this transpires your Congress stuffs their pockets with cash from elitists who own them.

The troubles we see in Europe are but a reflection of what is going on worldwide. This leads us to the conclusion that Americans and others are being systematically betrayed by their legislators. – A problem that can be remedied in November by removing almost all of them.

The European rescue attempt will not work nor will phony, temporary stimulus, or increased issuance of money and credit. Do not forget as well that a great deal of that European debt is being held by US institutions. Expending volatility is on the way, as the debt implosion continues. Is it any wonder, as we predicted, gold and the shares are hitting new highs.

Stock and bond markets have no way to go but down. If you are not out of both, with the exception of gold and silver shares, you had better be. The big money, the professionals, are in a state of panic and that money has to go somewhere. Yes, you guessed it, and that is very bullish for gold and silver related assets. As an added incentive the dollar is in the process of completing a head and shoulders, which means the rally is over and the dollar is headed down. Even though the dollar decoupled from gold over a year ago, as we predicted, and probably only affects gold by some 20%, it is still gold bullish and not neutral or negative. Adding further fuel to the fire we predicted four years ago not only real estate would collapse and that foreclosures would wipe out trillions in real estate values, but that millions would walk away from their underwater homes. Homes where mortgages were greater than the home value. The first wave began two years ago, but we now see affected those with good to excellent credit who are defaulting because one or even two breadwinners have lost their jobs. Now we have those underwater that won’t sit with a wasting asset. Besides they realize this could now go on for years, perhaps two more years to the bottom of the market and many more before any semblance of normality is seen. They have now become about 13% of all defaults, up from 4% three years ago. Mortgage holders also see this as payback for the banks that caused the debacle and screwed the homeowner in the first place. Banks aided and abetted all kinds of fraud and no one has ever been charged, never mind sent to jail. The Fed and government also bailed out the banks and not the public and that has further incensed homeowners and others. It pays to be a crook. The banks are losing about $100 billion a year and that is funneled into the economy via other channels – another stimulus plan, that is because many no longer pay a mortgage or rent. In the next two years homes in negative equinity will rise from 25% to 50% to 60%. Lots of lenders are going under and that is the way it should be. It, of course, will be devastating for the economy.

Bob Chapman discusses the G-20 Summit & The Financial Meltdown on The Alex Jones Show June 25, 2010

Widening US Deficit To Collapse the Dollar - Eric King of King World News Blog

Looking at the year 2010 on the chart you can see a huge chasm between spending and revenue. Keep in mind that like most countries the US has two sets of books, so the situation is much more dire than the illustration. Let’s go with what the graph states for now and look past 2010 where we see the fantasy of increased revenue. Revenues will not increase, and when the economy has its next leg down there is a high likelihood of further decreases in revenue.

June 25, 2010
The above chart is a graphic image of the problem with the government forecasts. Spending increases dramatically and there is the underlying assumption that revenues will increase as well. This projection does not take into account the fact that we are in a depressionary cycle which is ready to have another leg down.

An already weak economy will become even weaker. This means less tax revenue, which flies in the face of government forecasts which call for an increase in revenue. As the chasm increases in size between spending and revenue, faith in the US dollar will evaporate. This will lead to a significant devaluation of the dollar, or an outright collapse.

Many developed countries face similar problems today and this is one of the major pillars of this secular bull market in gold. Make sure you have gold as your insurance policy. This means owning physical bullion, not paper promises.

Eric King

KingWorldNews.com

Gold Bubble? What Gold Bubble? by Toby Conor of Gold Scents

http://www.zerohedge.com/article/guest-post-gold-bubble-what-bubble

Guest Post: Gold Bubble? What Bubble?
Submitted by Tyler Durden on 06/20/2010 20:38 -0500

Submitted by Toby Connor of Gold Scents
We continue to hear pundits describe gold as a bubble. Certainly it will turn into a bubble before this is all over but we are hardly in the bubble stage yet. In order for a bubble to form you need the public to come into an asset class. The public is pretty dim and it can take 15-20 years before they "catch on". It took 18 before they noticed the tech bubble.

Once they do start to "get it" we will have about a year to a year and a half as gold enters the parabolic stage before the bubble pops. See the Nasdaq chart below from late 98 to March of 2000.


At gold's top, half of your neighbors will be buying gold (not selling like they are doing now).

At the top there will be lines outside the the local coin dealer waiting for the next shipment of gold to come in.

At the top 7 of 10 billboards you see driving down the highway will have something to do with precious metals.

At the top the guy standing next to you in the grocery store will tell you how many thousands of dollars he made last month off his gold coins.

At the top everyone will have become convinced the dollar is toilet paper and will only continue to decline until it has become worthless.

CLICK HERE to continue reading this article.

A Golden Response To Economic Declines - Bob Chapman "The International Forecaster" A MUST READ!

http://theinternationalforecaster.com/International_Forecaster_Weekly/A_Golden_Response_to_Economic_Declines

A plan for the euro, a response to declines is made with gold, pension benefits exposed, BP will default, Baltic Dry Index gets drier, oil deluge to flow for years, Fannie and Freddie to delist from exchanges, banks missing TARP payments.

Note how gold explodes whenever the euro takes a dive. Those of you who think that the euro is going much lower in the near future had better think again. The explosion of gold whenever the euro goes down will alone give the Illuminati powerful reasons to support the euro, as will the potential for a devastating trade imbalance that will aggravate the US debt problem from a balance of payments perspective. Gold is now rising with the dollar because it is now competing with the dollar for safe-haven money, even when the stock markets are tanking. Gold will win this battle eventually once it is clear that the US economy is going to go under, and that event is not far off. Silver may catch up with gold based on the ridiculous gold to silver ratio alone, but could suffer if the stock market starts to tank, since the combined attack from J P Morgan Chase and the ensuing downward expectation for commodities demand could take their toll. Gold will continue strong in the current environment no matter what due to the unsolvable sovereign debt crises that have become evident around the world.

Remember what J P Morgan himself said: "Gold is money, period." And soon it will be the only money that has any value, period. Gold, silver and their related shares are the only place to be. Stay clear of paper gold and silver and buy physical only and take possession. These paper gold and silver Ponzi schemes, like GLD, SLV, OTC derivatives and mint certificates are going to be exposed soon. The Sprott Gold Bullion Fund is a viable possibility if you want to buy some paper gold, otherwise go physical only. Very shortly, JP Morgan will be sued in class actions by big players that have been criminally screwed in the silver markets, and this could be the catalyst that finally blows the whole precious metals fraud wide open. So load up! Don’t forget as well, for those who want inherent leverage, do not forget the gold and silver shares that is where the most money is made with moderate risk.

Please CLICK HERE to Continue reading this article at Bob Chapman's The International Forecaster..

Gerald Celente The Stimulus only Stimulated The Banks - The Entire System is Collapsing - RT 6-18, 2010

June 18, 2010 — The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed. Gerald Celente says that there is no way governments can just keep pumping money into the economy and it will only get worse, with an eventual crash.

Gerald Celente is the #1 Trends Forecaster I highly recommend his TrendsResearch Journal at http://www.trendsresearch.com

Following are Gerald Celente's Forecasts for 2010: · The Crash of 2010: The Bailout Bubble is about to burst. Be prepared for the onset of the Greatest Depression. · Depression Uplift: The pursuit of elegance and affordable sophistication will raise spirits and profits. · Terrorism 2010: Years of war in Afghanistan and Iraq ­ and now Pakistan ­ have intensified anti-American sentiment. 2010 will be the year of the lone-wolf, self-radicalized gunman. · Neo-Survivalism: A new breed of survivalist is devising ingenious stratagems to beat the crumbling system. And, they're not all heading for the hills with AK-47's and pork & beans. · Not Welcome Here: Fueled by fear and resentment, a global anti-immigration trend will gather force and serve as a major plank in building a new political party in the US. · TB or Not TB: With two-thirds of Americans Too Big (TB) for their own good (and everyone else's), 2010 will mark the outbreak of a "War on Fat," providing a ton of business opportunities. · Mothers of Invention: Taking off with the speed of the Internet revolution, "Technology for the Poor" will be a major trend in 2010, providing products and services for newly downscaled Western consumers and impoverished consumers everywhere. · Not Made In China: A "Buy Local," "My Country First" protectionist backlash will deliver a big "No" to unrestrained globalism and open solid niches for local and domestic manufacturers. · The Next Big Thing: Just as the traditional print media (newspapers/magazines) were scooped by Internet competition, so too will new communication technologies herald the end of the TV networks as we know them.

Melt Up - A Must Watch Documentary by the National Inflation Association (NIA)

This is a must watch documentary released on May 13, 2010 about our current economic situation and where it is headed. Everyone should watch this & pass this on to their friends.

NIA believes Meltup is the most important economic documentary ever produced in world history. The Second American Revolution has begun! Please share this documentary with all of your friends and family members immediately!

Check out a recent update to this documentary released from the NIA on June 14th, 2010 here
Check out other videos from the NIA at http://inflation.us/videos.html

Mike Malloney Talks About The Currency Crisis & The Gold Standard

Mirror, Mirror on the Wall, When is the Next AIG to Fall? - Marc Faber

misesmedia — May 28, 2010 — Presented by Marc Faber at "Austrian Economics and the Financial Markets," the Mises Circle in Manhattan on 22 May 2010 in New York, New York. Includes an introduction by Mises Institute president Douglas E. French.

Marc Faber: "I Buy Gold, I Don't Know What Else To Buy" on CNBC June 17, 2010

http://www.zerohedge.com/article/marc-faber-i-buy-gold-i-dont-know-what-else-buy
Marc Faber: "I Buy Gold, I Don't Know What Else To Buy"
Submitted by Tyler Durden on 06/17/2010 08:24 -0500

Another fantastic interview and some typically outspoken observations from everyone's favorite Doom and Gloomer:"I think that governments have become like a cancer, they have expanded in the financial system...The biggest problem is too much intervention. Whatever the government touches is usually done worse than in the private sector. I think any government intervention has unintended consequences and is negative. Eventually the market will break the intervention and things will blow out...People who tell me about the big deflation in Japan, why don't they spend a day in Tokyo? It's still the most expensive city in the world. At this level I'm not particularly interested in buying anything. I buy gold, I don't know what else to buy." Faber expects another worse crisis to happen in five to ten years, "when the whole financial system collapses" - the reason: the debt problem has been kicked down the road without actually being sold. "I think US Fed, ECB and other central banks have no other option, they will continue to monetize and buy bad paper, period. The central bankers are precisely the ones that don't know that excessive money creation and excessive debt creation leads to a crisis down the road. The ECB will talk hawkishly, but act dovish, like the Fed in the US." Must watch 20 minutes.


Part 1

Ron Paul - Prepare for the Worst

Presented by Congressman Ron Paul at "The Failure of the Keynesian State," the Mises Circle in Houston, sponsored by Jeremy S. Davis. Recorded Saturday, 23 January 2010. Includes introductory remarks by Mises Institute president Douglas E. French, and by Institute founder and chairman Llewellyn H. Rockwell, Jr..