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Posts Tagged ‘national debt’

Think gold is high? Wait till dollar bonds are dumped, Davies says

August 11, 2011 Comments off

gata.org

The West is close to the point where its paper currency system is insolvent, and as a result gold is heading to $5,000 an ounce, according to the manager of a gold fund.

“A paper currency system ultimately ends in insolvency,” said Ben Davies, the chief executive of Hinde Capital in an interview with CNBC.com on Tuesday. “We have arrived at this point in the West. So why own worthless paper?”

His belief that gold will hit $5,000 an ounce is not shared by many major players in the market. On Sunday, Goldman Sachs raised its 12-month price target for gold to $1,860 an ounce. In early trading Tuesday, spot gold hit a record $1,778 an ounce, before pulling back.

Goldman based its new target on Read more…

Categories: GOLD Tags: , , ,

Dow plunges 635 points as downgrade fuels market turmoil

August 9, 2011 Comments off

thehill.com

The Dow Jones Industrial Average closed down 635 points Monday, dropping below 11,000 as the impact of an unprecedented downgrade to the U.S. credit rating reverberated through financial markets.

The downturn came on the heels of a brutal week for the market, capped off when the Dow lost 512 points on Thursday. That gave the blue-chip stock index two of its 10 biggest point losses in the last three trading days.

The S&P 500 and NASDAQ stock indices were both down nearly 7 percent at the close of Monday’s trading.

The dramatic point drops followed the first-ever downgrade of United States debt by Standard & Poor’s late Friday evening. The credit rating agency, citing increasing concern over the nation’s political infighting and the relatively small amount of deficit reduction included in the deal to raise the debt limit, knocked America down from its top rating for the first time, moving it down one notch to AA+.

In an ironic twist, the financial product that was downgraded reaped the Read more…

China Boldly Goes (Again) Where Moody’s Has Never Gone Before, Downgrades US From A+ To A, Outlook Negative

August 3, 2011 Comments off

zerohedge.com

As was predicted last week, China’s rating agency Dagong, unlike its worthless western counterparts, has come through on its threat to downgrade the US in the event a subpar debt ceiling deal was hammered out. As Xinhua reports, ‘Dagong Global Credit Rating Co. said Wednesday it has cut the credit rating of the United States from A+ to A with a negative outlook after the U.S. federal government announced that the country’s debt limit would be increased.” Confirming that not being branded a NRSRO is the only thing that allows a rater to still think straight (and not in terms of lost client revenue if one goes ahead and tells the truth), Dagong’s decision was spot on: “The decision to lift the debt ceiling will not change the fact that the U.S. national debt growth has outpaced that of its overall economy and fiscal revenue, which will lead to a decline in its debt-paying ability, said Dagong Global in a statement.” So while Moody’s, which is now certified as the Read more…

What happens if the U.S. defaults?

July 28, 2011 Comments off

cbc

Blank U.S. Treasury cheques are run through a printer at the U.S. Treasury printing facility July 18 in Philadelphia.The first payments that stand to be affected if the U.S. government defaults on Aug. 2 would be some $23 billion US in Social Security benefit cheques. Blank U.S. Treasury cheques are run through a printer at the U.S. Treasury printing facility July 18 in Philadelphia.The first payments that stand to be affected if the U.S. government defaults on Aug. 2 would be some $23 billion US in Social Security benefit cheques. (William Thomas Cain/Getty)

How a default would unfold immediately appears relatively straightforward. It’s the reaction that no one can predict, because it’s never happened before.

The first move will be made by the U.S. Federal Reserve. The Fed is the Treasury Department’s bank, handling government cheques and lending to banks which borrow using U.S. Treasury debt as collateral.

One day — the U.S. government has estimated it will be Aug. 2 — the Fed will serve notice on the government that its account at the Fed will be in overdraft by the end of the day, in violation of the Federal Reserve Act.

On Aug. 3, some Read more…

ALEX JONES SHOW 22 JUNE 2011 LINDSEY WILLIAMS BOMBSHELL

June 23, 2011 Comments off

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Is our debt to China a national security risk?

May 10, 2011 Comments off

salon

AP/Jacquelyn Martin
Treasury Secretary Timothy Geithner meets with China’s Vice Premier Wang Qishan, center, during the US-China Strategic and Economic Dialogue meetings, Monday, May 9, 2011

China is the largest foreign holder of U.S. debt (with estimated holdings of $1.16 trillion) — and, according to a newly proposed U.S. military spending bill, this constitutes a national security concern for America.

The 2012 Defense Authorization Bill proposed Monday by Rep. Howard McKeon, the California Republican who chairs the House Armed Services Committee, includes a section on China. Why would China feature in a 2012 military budget? The answer is leverage. As the AFP noted, the question the bill poses is whether “Beijing could draw a military advantage from its status as a major U.S. creditor.”

There is some precedent for this concern. In early 2010, as Reuters reported, senior Chinese military officials urged that China sell some U.S. government bonds as a punishment of sorts for Washington having sold arms to Taiwan (although the threat was not Read more…

Even Donald Trump Is Warning That An Economic Collapse Is Coming

February 4, 2011 Comments off

In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America.  Using phrases such as “you’re going to pay $25 for a loaf of bread pretty soon” and “we could end up being another Egypt”, Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed.  Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business.  As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation.  In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012.  But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.

Trump says that the U.S. government is broke, that all of our jobs are being shipped overseas, that other nations are heavily taking advantage of us and that the value of the U.S. dollar is being destroyed.  The following interview with Trump was originally posted on Newsmax and it is really worth watching….

Now, you may or may not think much of Donald Trump as a politician, but when a businessman of his caliber starts using apocalyptic language to describe where the U.S. economy is headed perhaps we should all pay attention.

The following are 12 key quotes that were pulled out of Trump’s new interview along with some facts and statistics that show that what Trump is saying is really happening. Read more…