Esteemed Economist John Williams of ShadowStats.com Warns About Fed Policy Which Will Create HyperInflation

QE2 to Infinity & beyond - Helicopter Ben Bernanke

GoldSilver Link | Original Source Link
John Williams, Shadow Government Statistics: Times That Try Our Souls

08/06/2010

The government is effectively bankrupt. Using GAAP accounting principles, the annual deficit is running in the range of $4 trillion to $5 trillion. That's beyond containment. The government can't cover it with taxes. They'd still be in deficit if they took 100% of personal income and corporate profits. They'd also still be in deficit if they cut every penny of government spending except for Social Security and Medicare. Washington lacks the will to slash its social programs severely, to change its approach to ever bigger government. The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation.

Harvard Professor Neil Ferguson on CNBC on US Debt & the Mortgage Crisis

http://www.businessinsider.com/niall-ferguson-yuan-2010-6
White | Jun. 21, 2010, 1:16 PM | 3,232 | 25
Niall Ferguson of Harvard University spoke with CNBC this morning about the yuan revaluation, saying it was too small to matter for the U.S. trade balance. He also speculated on the difficult future facing the U.S. regarding its sovereign debt situation.
0:35 This is a subtle bit of politics ahead of the G20, China is creating a currency sideshow compared to what is happening with the euro
1:30 They would have to revalue the yuan by 25 or 30% to have a significant debt on the trade balance with the U.S.
1:50 Job losses in the U.S. are not the result of manufacturing competition with China, but with the decline in the housing market, which is a long term problem
2:25 The next step in this crisis is the sovereign debt - fiscal crisis scenario, as balance sheets across the west are out of shape
3:20 The U.S. is so vulnerable because servicing costs and yields are so low right now; when things move slightly, it will be dramatic crisis for the U.S. because of how much debt it has
4:20 There is going to be a crisis in the U.S. within 2 years, best case scenario 4 years

Martin A. Armstrong America's #1 Political Prisoner - Can The Euro Survive A Sovereign Debt Crisis?

http://www.martinarmstrong.org/files/Can-the-Euro-Survive-a-Sovereign-Debt-Crisis-6-14-10.pdf

This is an *unofficial site. Subscribe for updates at the official site ArmstrongEconomics.com. Martin Armstrong, America's #1 Political Prisoner, author of the Economic Confidence Model based on an 8.6 year business cycle theory inspired by the work of Nikolai Kondratieff.

Martin Armstrong is currently in prison. Indicted in 1999 on charges of defrauding Japanese investors. He was in jail for seven years for contempt of court before pleading guilty in 2007 to the fraud charge for which he received an additional five year prison term. Armstrong claims his legal problems started when he failed to play ball with "The Club". His imprisonment is one of the longest under a contempt of court order without a trial. Coincidentally, prior to his guilty plea, his final appeal for release (relating to indefinate imprisonment for contempt of court) was denied by (recently promoted) U.S. Supreme Court Justice Sonia Sotomayor.

On martinarmstrong.org there are economic essays (pdf format) written in prison covering global economic history; future trends and first hand accounts of market manipulation by the largest financial institutions ("The Club") "untouchable" by the U.S. Justice System. Also included are the most recent court filings in connection with Armstrong's continuing quest for due process denied him by that same U.S. Justice System

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.

Chossudovsky: "Major currencies can simply collapse"

RTAmerica — June 18, 2010 — Obama is urging China to review its currency policy despite Chinese officials made it clear that they are not going to tolerate any interference from abroad to this issue. Is this going to become a major topic of the G-20 meeting in Canada and what's the mood their on the eve of the summit? Michel Chossudovsky says that the financial crisis is not over as President Barack Obama has hinted at.

Gold reclaims currency status as global system unravels by Ambose Evans-Pritchard

By Ambrose Evans-Pritchard
The Telegraph, London
Sunday, June 20, 2010

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7841961/Gold-reclaims-its-currency-status-as-the-global-system-unravels.html
We already know that the eurozone money markets seized up violently in early May as incipient bank runs spread from Greece to Portugal and Spain, threatening the first big sovereign default of our era. Jean-ClaudeTrichet, the president of the European Central Bank (ECB), talked days later of "the most difficult situation since the Second World War, and perhaps the First."

The ECB's latest monthly bulletin gives us some startling details. It reveals that the bank's "systemic risk indicator" surged suddenly to an all-time high on May 7 as measured by EURIBOR derivatives and stress in the EONIA swaps market, exceeding the strains at the height of the Lehman Brothers crisis in September 2008. "The probability of a simultaneous default of two or more euro-area large and complex banking groups rose sharply," it said.

National Inflation Association (NIA) Update

Russia and China are now preparing for a post-dollar world. Are you? Check out this new must see video from NIA's VisionVictory:

Please continue to spread the word about NIA by telling your friends and family to subscribe for free at: http://inflation.us

COT Weekly Data Discloses Biggest Euro Short Covering Episode In History - ZeroHedge.com

COT Weekly Data Discloses Biggest Euro Short Covering Episode In History

http://www.zerohedge.com/article/cot-weekly-data-discloses-biggest-euro-short-covering-episode-history

The short squeeze will allow the Europeans one last chance to Buy Cheap Gold & Silver...

The World's #1 Trends Forecaster - Gerald Celente on Gold & Surviving in 2010 on the Lew Rockwell Show

Gerald Celente on the Lew Rockwell show 14 June 2010

Gerald Celente of the TrendsResearch the World's #1 Trends Forecaster Note - He has 80% of his assets in gold. http://www.trendsresearch.com/forecast.html

Gerald Celente says he has it down to 6 words "Princeton, Harvard, Yale, Bullets, Bombs & Banks"

"When people loose everything, they loose it"