Archive
The United States Only Has $54 Billion Of Cash Left In The Bank
Um, John, we’re about to go broke. What say we call off the circus act and finally do something about it?
Image: AP Photo/Harry Hamburg
Maybe this news will wake up those irresponsible idiots in Washington.The United States only has $54 billion of cash left in the bank.
That’s down from $100+ billion only eight days ago.
In the middle of last week came the shocking news that Apple, Inc., had more cash than the United States. Now, Apple has a lot more cash than the United States.
By early next week, if Congress can’t get its act together, the United States will have less cash than Google. Then Salesforce.com. Then, eventually, Pets.com.
Maybe, instead of preening in front of TV cameras, Congress folks should just hit the streets of Washington with hats in hand this weekend. If all 535 members spend all weekend out on the Mall, we might scrape together enough cash to last a few more hours. And these efforts will certainly Read more…
What happens if the U.S. defaults?
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…
Beijing warned on dollar holdings
China is running a major risk in holding so many dollars because the US may deliberately devalue its currency, a senior Chinese official has warned.
The comments by Guan Tao, head of the international payments department in the State Administration of Foreign Exchange, knocked the dollar on Tuesday, adding to fears about the struggling US economy. The dollar fell to a one-month low against a basket of six leading currencies.
Pressure on the dollar has intensified amid heightened concerns that the soft patch in the US economy will ensure that the Federal Reserve sticks to its ultra-loose monetary policy in the near future.
Despite Mr Guan’s concerns, which are often voiced in Beijing, analysts said that China had little choice but to recycle its vast foreign currency reserves into dollar-denominated assets. “The United States has adopted expansionary fiscal and monetary policy to stimulate economic growth,” Mr Guan said in an article that was published on the website of China Finance 40 Forum, a Beijing economic think tank.
“The United States may find it hard to Read more…
12 Warning Signs of U.S. Hyperinflation
One of the most frequently asked questions we receive at the National Inflation Association (NIA) is what warning signs will there be when hyperinflation is imminent. In our opinion, the majority of the warning signs that hyperinflation is imminent are already here today, but most Americans are failing to properly recognize them. NIA believes that there is a serious risk of hyperinflation breaking out as soon as the second half of this calendar year and that hyperinflation is almost guaranteed to occur by the end of this decade.
In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015. Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately.
Here are NIA’s top 12 warning signs that hyperinflation is about to occur: Read more…
Cables show China used debt holdings to press US
 |
| © AFP/File |
WASHINGTON (AFP) – Leaked diplomatic cables vividly show China’s willingness to translate its massive holdings of US debt into political influence on issues ranging from Taiwan’s sovereignty to Washington’s financial policy.
China’s clout — gleaned from its nearly $900 billion stack of US debt — has been widely commented on in the United States, but sensitive cables show just how much influence Beijing has and how keen Washington is to address its rival’s concerns.
An October 2008 cable, released by WikiLeaks, showed a senior Chinese official linking questions about much-needed Chinese investment to sensitive Read more…
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
crisisboom
CRISISBOOM 
You must be logged in to post a comment.