Many of the best mortgages in the US are due to default (even these people with good credit are losing their jobs) along with the commercial mortgages. The FDIC is almost broke, almost out of bank rescue funds. The rate at which banks in the US are going bust is increasing. Citi and AIG are still in trouble, probably JP Morgan, too. US bonds are looking to break their long term up trend line (since about 1982). Then yields / interest rates will climb. The US federal government is up against its debit limit again when it has not been even one year since the last time they had to raise the debt limit. The fact that they have a limit is a sham. What is the point?
The BIS's (Bank for International Settlement) total for derivatives was about $1.4 quadrillion. There is not enough wealth in the world to settle this amount. It is a crazy scene that built up fast over a few years.
Pressure (Countdown) Toward Breakdown
My best sources of information report that some unexpected deep shocks are coming from USGovt creditor nations. They are simply fed up, frustrated, and astonished at the manner of lost control, spiraling debts, and blatant monetization amidst lies in denial of that same monetization. The USTreasury auctions now have domestic hidden elements, and global hidden monetization elements. The USFed is purchasing through Permanent Open Market Operations the bonds grabbed by the primary dealers. Some of the auctions are actually underbid, and fortunately for the statistics, the bid/cover ratio includes obligated dealer bids. The USFed liberally uses its USDollar Swap Facility to enable strong bids by foreign central banks, except that they are highly likely coming from USFed accounts on foreign soil, or else from money lent by the USFed itself. Warning after warning have come not to monetize, not to debauch the USDollar currency, not to permit skyrocketing deficits. Yet they continue, and worse, little if any reform or actual stimulus has occurred. Mainly what we witness is more channeled funds to the big banks, more coverage of credit derivative fires, and more announcements of bond support. See the $1.25 trillion support for Fannie Mae bonds, aka USAgency Mortgage Bonds. The Green Shoots have now been dismissed as a marketing ploy. The Stress Tests have now been dismissed as a marketing ploy. The Stimulus Plan has now been dismissed as a marketing ploy. The only USEconomic recovery will be a statistical recovery. A Jobless Recovery is a recovery for stocks and a redemption for the bankers. Main Street continues to be discarded....
China's Silver Bulls Are on the Loose
Monday, August 10, 2009
Official Chinese TV announced last week that silver bullion is now available for the investing public. China, once on a silver standard where nobody knows today what happened to the hoard, now offers 500 gram, 1-, 2- and 5 kilo bars. The news lady alluded that silver is comparatively cheap to gold, citing the current gold-silver ratio of 1:70.
China encourages Silver Bullion for investment
It is going to get ugly. Real actual money ( gold / silver ) and other atoms are going to make a huge difference for those who had forsight and took action to protect themselves as best they could. In economics and markets, the crowd is wrong. This is the first time in the history of the world that virtually everybody uses a government fiat token that is not tied somehow to gold or silver, let alone reserved by these metals, to make payments. There is no escape to a currency tied to or reserved in gold or silver, like there was prior to 1971. There is only money itself and other atoms as an escape, safe store of value.