Gresham's Law Flexing its Muscle

Sorry, I couldn't resist. But Gresham's Law is once again exerting its force over fiat currencies, the Vietnamese government's response is just more overt than our own in its defense of its dieing currency.

Gold, Gresham's Law & the Dong - Buy Gold Online with the Bullion Vault - GoldSeek.com: news.goldseek.com/BullionVault/1304013068.php
http://chum.ly/n/87fe00

Dollar Hits Record Low

The following sentence says it all: "In our risk scenario, little progress on the fiscal front raises the probability of a fiscal crisis and the odds that the Fed becomes the buyer of the last resort,” said David Woo, currency strategist for Bank of America Merrill Lynch, in a note to clients today."This would accelerate the process of the USD’s demise as the global reserve currency and cause it to decline in a disorderly manner.” The "disorderly decline" business means serious and painful levels of price inflation, all thanks to our crime bosses in DC and at the Fed.

Adjusted For Inflation, Dollar Hits Fiat-Era Low - CNBC: www.cnbc.com/id/42809381
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A Foreign Perspective of the Fed

The author observes: "To the Chinese and others, it looks as if the Fed, by flooding the world's monetary system with cheap dollars, is trying to devalue and inflate its way out of trouble. The Fed's policies are both stoking inflation in China and debauching the value of that country's vast portfolio of dollar assets"

Why the power of the mighty Federal Reserve is finally on the wane - Telegraph: www.telegraph.co.uk/finance/comment/jeremy-warner/....html
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One More on Beranke's Doublespeak

This from the article: "The result is what Mr. Malpass called 'a disconnect between the rhetoric and the policy' because 'the dollar is neither strong nor stable and the U.S. hasn’t supported it.'”

The Dog That Didn’t Bark - April 27, 2011 - The New York Sun: www.nysun.com/editorials/the-dog-that-didnt-bark/8...87324
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Yield on 2 Yr Greek Debt Passes 25%

"European Central Bank officials have warned a restructure could prove more disastrous than the collapse of Lehman Brothers in 2008, which precipitated the financial crisis." Greece debt is getting what it deserves, but England is in no better financial shape. And what of the world's biggest debtor? How would it do if interest rates hit even 10% of its 14+ Trillion? And the Republicans think that we have 20+ years to balance the budget?

Markets shun debt of rescued nations - Telegraph: www.telegraph.co.uk/finance/economics/gilts/847824....html
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Bernanke and the Dollar

Bernanke spoke out of both sides of his mouth about inflation because 1) he is a liar, and 2) he had to. While the Fed should be raising interest rates like Volcker did in the '80s, it cannot, both because our economy is on fiscal life support, and we have more debt than we can handle once interest rates go up. The dollar index (measures the dollar against other currencies) is near all time lows, so as I've pointed out before, if those other currencies have inflation, we have it worse, regardless of the propaganda our government puts out. One other point: if the dollar is discredited, all fiat currencies are discredited. When you have been burned as badly as we have burned the world through our monetary policy, will people quickly put their faith in some other central bankers?

My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chum.ly/n/87950d

Moslem Refugees Flooding Europe

Is Western Civilization thinking about self preservation here? If civilization fractures along sectarian lines in the Middle East, can Europe itself avoid being pulled into the vortex?

France and Italy in call to close EU borders in wake of Arab protests | World news | The Guardian: www.guardian.co.uk/world/2011/apr/26/eu-borders-ar...tests
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Mainstream Press starts to Question Recovery

As this story states: "It remains unclear how much of the equity market rally has been 'genuine', rather than simply a 'mopping up' of that extraordinary injection of liquidity,". No doubt, there has been real earnings, by real companies, as this massive market manipulation occurred, but growth like that depends on the same distortion of the markets going forward as well. Think of America's housing boom.

Central banks pump £3 trillion into world economy - Telegraph: www.telegraph.co.uk/finance/economics/8472465/Cent....html
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End of the Age of America Proclaimed

The financial press is finally recognizing the obvious: "This is more than a statistical story. It is the end of the Age of America." Of course it makes sense for America to misread its decline. America once had moral, financial and social standards as old and constant as the bible, once it relieved itself of those old inhibitions it was free to "progress" without recognizing that the changes taking place were actually degeneration.

IMF bombshell: Age of America nears end Brett Arends' ROI - MarketWatch: www.marketwatch.com/story/imf-bombshell-age-of-ame..._news
http://chum.ly/n/871bc5

Syria, Part of the Sunni/Shia Mix

The ancient conflict continues to brew in the Middle East, showing no sign of abating.
Syria on the Edge of the Abyss: Assad's Regime Escalates Crackdown on Protesters - SPIEGEL ONLINE - News - International: www.spiegel.de/international/world/0,1518,758905,0....html
http://chum.ly/n/86c38b

Richard Russell on Gold/the Dollar

"When gold rises, as it has been doing, it hoists a red flag over Wall Street, the Fed, and the economy"

Russell endorses gold manipulation thesis Peter Brimelow - MarketWatch: www.marketwatch.com/story/russell-endorses-gold-ma...04-25
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Russia Chimes in on US Monetary Policy

"Look at their trade balance, their debt, and budget. They turn on the printing press and flood the entire dollar zone — in other words, the whole world — with government bonds."

Putin: U.S. Monetary Policy Is ‘Hooliganism’ - Real Time Economics - WSJ: blogs.wsj.com/economics/2011/04/20/putin-u-s-monet...anism
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The World tries to Protect itself from US Monetary Policy

Foreign countries are instituting capital controls on dollars coming into their countries in order to quell inflation. Just to point out the obvious once again: if countries the world over are experiencing significant inflation, and our currency is weakening compared to a basket of their currencies, we have inflation even worse than they do. This puts the lie to the official numbers put out by the propaganda generators who calculate CPI. Higher inflation means higher interest rates and interest payments on our debt, which becomes a set of heavy shackles around america's ankles as we try to tread financial water.

Review & Outlook: Fleeing the Dollar Flood - WSJ.com: online.wsj.com/article/SB1000142405274870378910457...ADTop
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The Big Financial Picture

Jim Sinclair does a great job of bringing all the big factors in the global financial crisis together in this interview. Derivatives, bank accounting rule changes, real estate, Quantitative Easing, inflation, all in easy to understand terminology. This one is a classic.

Interview: Jim Sinclair on Gold and the World Financial System: news.goldseek.com/GoldSeek/1303311900.php
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Debt Burden Greecing the Skids

It is clear the to-big-to-fail US government is not heeding the warnings that the PIIGS represent. What is interesting is that this article in the main stream press links the performance of gold to the debt load of Europe and the US. I'm always impressed when the main stream press acknowledges the obvious.

Greece forced to pay sky-high rates to borrow - Telegraph: www.telegraph.co.uk/finance/economics/gilts/846174....html
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The Way China Does Business

With Idaho's Project 60 promoting the idea of luring Chinese companies over here, we would do well to pay heed to how they do business, and not be naive country boys giving away our country and jobs to shrewd Chinese interests.

Commentary: Chinese takeaway - UPI.com: www.upi.com/Top_News/Analysis/de-Borchgrave/2011/0...07404
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Ron Paul Continues to point out Corruption at the Fed

One thing I disagree with is the assessment that we are beginning to discuss spending cuts in some more meaningful way. DC is discussing cuts in the same old meaningless way it always has. It is always a balanced budget only in projections, cuts are always given in comparison to some bloated budget rather than compared with last years spending, same old off budget spending... Corruption can't be address while politicians make up the rubber standards with which to measure it. Where is the belief in nature's God and Natural Law which gave us limited government, natural rights and the rule of law?

Budget Cuts are Meaningless Without Fed Transparency: paul.house.gov/index.php?option=com_content&vi...=1851:budget-cuts-are-meaningless-without-fed-transparency&catid=62:texas-straight-talk&Itemid=1&Itemid=69
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Gold the Go To Currency

Dim view on the dollar, suppressed interest rates, growing inflation and more lead to Texas schools seeking to protect savings with gold. If the federal government would attempt to confiscate gold at some point, they would now have some serious problems from Texas itself.

Gold-Shortage Threat Drives Texas Schools Hoarding 664,000 Ounces at HSBC - Bloomberg: www.bloomberg.com/news/2011-04-15/texas-university....html
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Credit Rating Agency Warns on US Debt

The credit rating agencies, notoriously slow at recognizing danger and not wanting to lose business with the organizations they rate, seldom warn before it is obvious to all that a problem exists. Still this is a strategic development as this multi-year debt crisis works its way up toward U.S. debt. I think things get crazy when US rates hit 5%.

Standard & Poor’s Puts ‘Negative’ Outlook on U.S. AAA Rating - Bloomberg: www.bloomberg.com/news/2011-04-18/standard-poor-s-....html
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Jim Grant Interview

Here is another very smart, very reputable market analyst warning the world about what our liars/leaders are up to. In all this criticism of the Federal Reserve, I keep hearing the assertion that they are a private bank which seems a little misleading. While they remain largely unaccountable and may keep all the profits from their thefts, they operate under the authority of the Federal government and work closely with the administration. Congress controls their board of directors. Our federal government remains responsible for their existence and actions, including the massive market interventions/programs as well that occurred over the past several years.

My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chum.ly/n/8338fd

No way out for Greece?

There is a lesson here for us: "Greece is implementing spending cuts but concerns have mounted in recent days because tax revenues have disappointed as the austerity programme squeezes the economy." Government dependent economies crater when government is forced to cut spending. It's like choosing between the DTs or blood poisoning and most addicts choose to continue the binge until forced into rehab, like Greece was. Who or what will force the US into rehab, or will we binge ourselves into oblivion?

Fears grow over Greek debt default despite bail-out - Telegraph: www.telegraph.co.uk/finance/economics/gilts/845207....html
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My Opinion of the Ryan Plan

I personally find the Ryan plan disturbing because of what it says about the inability of even our conservative politicians to grasp the economic danger we are in. It should be obvious that we do not have decades to get our fiscal house in order. We may not have 20 months before our debt goes bad, let alone 20 years. Remember how long it took for CDOs to go from AAA to Junk? We are already financing current spending with the digital printing press. We can’t take any more debt. Debt service costs alone will probably soon take the lion’s share of the federal budget, given the inflation that is showing up in the markets and the implications it holds for interest rates. If any corporation were bleeding red the way our government is, they would not try to just slow the losses and tout that as success. They would dramatically cut to the bone, seeking positive cash flow and profits as the only outcome which would forestall insolvency. The bottom line is that we are in real danger of no longer being a going concern and must do what it takes to live within our means immediately, not in a decade or two. If this is the best we can dream of doing, it says loud and clear that DC will not contain itself unless forced by some major crisis.

Our total tax burden is beyond unsustainable, a reality that we haven’t had to face up to because we issue the world reserve currency and have the exclusive privilege of being able to expand the money supply worldwide without backing our dollars value with real wealth production. But some of the biggest economies in the world have taken steps toward doing trade without dollars. The BRIC countries (Brazil, Russia, India and China) are a case point, but are not the only countries trying to free themselves from the "stealth tax" that Quantitative Easing amounts to. Consistent with that is the unprecedented dollar weakness we are seeing currently when compared with other currencies. Commodities confirm the trend as well, and investors worldwide are looking for a more secure store of value as they turn to the traditional international currencies of gold and silver. Our debt chart looks like a classic blow-off phase of a financial bubble, and yet we try to correct just enough to keep the same scam going. The writing is all over the wall, yet we just keep pouring more drinks in a party-till-you-die mentality.



Gresham Bouma
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Even the Huffington thinks Goldman is Guilty

"while Goldman salesmen were peddling investments linked to bonds backed by subprime mortgages, its traders were betting that those securities -- and others like it -- would fail, and that the two teams were in contact." You have to wonder, will the best politically connected financial institution in the world ever pay for its crimes?

Goldman Sachs Chief Blankfein Could Face Criminal Prosecution For Role In Financial Crisis: www.huffingtonpost.com/2011/04/14/goldman-financia...Daily Brief
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Americans Seeing Through "Recovery" Hype

The press and governments ability to fool the people has topped out at 41%, and is plunging. The ability to buy growing GDP numbers with government splurging is going away as well, as DC begins to mouth fiscally conservative rhetoric.

U.S. Economic Optimism Plummets in March: www.gallup.com/poll/147056/Economic-Optimism-Plumm....aspx
http://chum.ly/n/8267ce

"United States and Japan faced (with) particularly dangerous debt dynamics"

Even the IMF is biting the hand that created it. With more and more of our US debt in short maturities, our government faces the same wall of maturing debt.

Banks facing $3.6 trillion 'wall of maturing debt', IMF Global Financial Stability Report says - Telegraph: www.telegraph.co.uk/finance/economics/8448169/Bank....html
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Mainstream Press Starting to Admit to Price Inflation

The games the government plays with statistics are being exposed a little. Given the close relationship between CNBC (through parent GE) and the government, I am surprised.

US Inflation Rate: Inflation Using Volcker-Era Methodology Nearing 10% - CNBC: www.cnbc.com/id/42551209
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Here is your Recovery

When governments spend more it inflates meaningless statistics like GDP, which is a broad measure of economic activity. GDP goes up when government spends more, caring not where the money came from or what the financial activity is. It goes up when America goes into debt to buy more expensive fuel. But when it goes up the liars tell us we have a recovery and posture government as the savior, but in the long run it supplants the honest, wealth creating economy with one that consumes the wealth producing segment.

AFP: US deficit up 15.7% in first half of fiscal 2011: www.google.com/hostednews/afp/article/ALeqM5il-7CO...e.921
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Fed's Hoenig on Bank Bailout

While many of the large banks that received bail-out $ have repaid it, it remains largely unreported as to how they are making all the profits without making substantial loans. One likely explanation is that they receive loans at well below market rates of less than 1% and turn around and buy govt. bonds with the $, turning a risk free profit entirely sponsored by the fed. This conveniently understates the true size of the QE (money creation) program. Another huge issue with all the banks is the impossibility to asses their solvency since an important accounting rule called "mark to market" was suspended in order to keep bank financials from looking too grim. Suspending the rule allows banks to carry loan portfolios as original value instead or what they are worth at market prices. With a huge portion of real estate loans underwater, the value of those portfolios is seriously reduced, possibly permanently, but the banks do not reflect it on their books. Below market interest rate loans to banks act as direct subsidies sponsored by anyone who holds US denominated debt or cash. It is no wonder that the large, well connected banks (like Goldman Sachs) show huge profits while main street spirals into poverty.

Big banks are government-backed: Fed's Hoenig - Yahoo! News: ca.news.yahoo.com/big-banks-government-backed-feds....html
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Richard Russell Comments on Gold

While smarter men than I call this a "historic bull market" in the twin metals, I see it as the pair simply beginning to reclaim some of their historic positions as currency. This is all about the demise of fiat currencies, the meltdown of the current corrupt system, with individuals the world over losing faith in their political and financial masters and looking for an exit. I hope the honest money wins this battle, but don't expect it to be pretty.

My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chum.ly/n/816cd3

Soro's Conference Concludes with Call for new World Reserve Currency

Isn't it interesting that the prime mover and organizer behind this conference, Soros himself, is not even mentioned in this article calling for a new world reserve currency. All the policies Soros promotes through his prominent leftist political organizations exacerbate the financial imbalances that this article cites as reasons to abandon the dollar as world reserve currency. It is the assailant stepping in as savior. Now that government has proven untrustworthy, we just need to trust the international bankers? The magnitude of the crimes taking place in the open boggles the mind. The mainstream press is clearly with the enemy on this, or Soros would be exposed a million times over. This open attempt by new world order proponents, taking place on the site where the current international monetary agreement was reached, speaks of there brazen confidence in achieving their wicked objectives.

Stiglitz Calls for New Global Reserve Currency to Prevent Trade Imbalances - Bloomberg: www.bloomberg.com/news/2011-04-10/stiglitz-calls-f....html
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More Evidence of Faked Recovery

Retail is still struggling in spite of massive government cash infusions directly into the economy through unemployment programs and food stamps, as well as multiple other complex interventions. The jobs market "recovery" is in all likelihood a doctored stat as well. All these interventions are the equivalent of inter-venous feeding and leave the economy more dependent on government borrowing and spending than ever before just as the ability to borrow more has reached its limits world-wide. Will we reward governments with more power as a result of the disaster they bringing on us?

Malls Face Surge in Vacancies - WSJ.com: online.wsj.com/article/SB1000142405274870410160457....html
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Dollar Showing Unprecedented Weakness

The dollar chart is showing weakness despite all the turmoil in the world. The dollar chart compares the dollar to other fiat currencies. All currencies are losing to commodities. They are all in a race to the bottom, but the dollar is winning as individuals worldwide lose faith in government managed script.

My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
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Gold and Silver's Explosion

whether gold and silver are a proxy for fiat currency or not, many see them that way and history validates the idea. For this reason the ascent in the price of both is stunning commentary on the dollar especially, since it is the world's fiat currency. If the dollar fails, are you going to trust some other currency managed by some other group of corrupt officials?

Gold: 'This is the perfect storm' - Apr. 8, 2011: money.cnn.com/2011/04/08/markets/gold/index.htm
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Portugal's Bailout Grows

This is just one of many surprises for these bankrupt states. Just as here, "The country's hard left is already getting ready to battle further cuts". The increased funding will go to keeping public-private enterprises going, keeping the statist problems alive and well to drain the economic life until the next crisis hits. In a free market, inefficiency dies, is statism it grows as the solution is always more funding for institutions that can't balance their fiscal loads.

Hidden state debts may push Portugal bailout to €90bn | World news | The Guardian: www.guardian.co.uk/world/2011/apr/07/portugal-hidd...ilout
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Post from greshambouma at CHUMLY

Even an economist at CNBC, owned by GE, bailout object of the federal government is breaking ranks and warning of the obvious. But just as is making the news on Portugal today, the debt is much larger than advertised due to a lack of full disclosure about sub entities of the state. The news is always biased to minimize the debt or deficit spending. For instance deficit spending is always expressed as a percent of GDP instead of compared to total tax receipts. Our deficit spending might be around 10% of GDP, but more importantly, last year we spent about 67% more than we brought in as receipts. It is entirely meaningless to compare a private companies expenses to gross sales instead of income, yet that is the quality of government financial reporting, always biased to obscure the problem.

US Deficit Spending: US Going Same Route as Greece, Portugal: Economist - CNBC: www.cnbc.com/id/42452207
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Mark Faber Bernanke Murdering the Middle Class

Like a junkie, America must expand its money supply to keep the game going, but in doing so it cannibalizes itself financially since the feds program of money expansion is the largest theft in world history. Stability and wealth in society come from individuals being able to create wealth and further build on what they have created. When individuals thrive, society thrives. To do that requires a sound, stable monetary system, something you don't get when the elites control and manipulate the supply.

My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chum.ly/n/7f8b74

Soros "we need a global sheriff."

This man funds 1,200 politically active organizations and wants to centralize power worldwide. He organizes a conference to reform the global financial system with many of the media elites involved and the media treats it like a non-event? His own organizations are silent? Can this man who helped destabilize countries a number of times have our good in mind?

Unreported Soros Event Aims to Remake Entire Global Economy - WSJ.com: online.wsj.com/article/SB1000142405274870447190457...soros
http://chum.ly/n/7f87ec

The most predictable economic crisis in history

This short article is spot on. The debt we have accumulated is not just a problem for our grandchildren, we are in the middle of a debt crisis brought on by unsustainable levels of debt and fighting it with more debt. Debt level charts show that we are in a classic blow off phase. Since debt is a proxy for currency, the money supply, broadly measured has gone ballistic. This is all an inevitable result of fractional reserve banking and fiat currencies--the complete lack of discipline that they foster.

March Madness: U.S. Gov't Spent More Than Eight Times Its Monthly Revenue | CNSnews.com: cnsnews.com/news/article/march-madness-feds-spent-...-time
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Forbes article explains roll of fiat currencies

Fiat currencies allow governments to simulate creation "ex nihilo", but its not creation, its theft.

To Lower The Debt Ceiling, Fix The Monetary System - Rich Danker - Next Economy - Forbes: blogs.forbes.com/richdanker/2011/03/30/to-lower-th...ystem
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Emergency fed loans went to Foreign Banks

The real question is how did we get this information from the secretive institution?

Libya-Owned Bank Got 73 Loans From Fed Discount Window After Lehman Fell - Bloomberg: www.bloomberg.com/news/2011-03-31/libya-owned-arab....html
http://chum.ly/n/7dfd80

Obama Admin strikes deal with House of Saud

If we can't trust our federal government to manage our own border, why do we trust them to manage multiple other governments/countries around the world?

Asia Times Online :: Middle East News, Iraq, Iran current affairs: www.atimes.com/atimes/Middle_East/MD02Ak01.html
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A Diss-honest Defense of the Dollar

Even the Wall Street Journal has noticed this case.

Seth Lipsky: When private money becomes a felony offense | Gold Anti-Trust Action Committee: www.gata.org/node/9765
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Once a Nation of Makers, now a Nation of Takers

America established its world dominance post WWII by leading in wealth creation. We exported things that worked to the world, trading honest goods. Since the 70's we have been, instead, riding our reputation down, harvesting the worlds resources through our exclusive position as the issuer of the world reserve currency. How would we do now, if we had to give as much as we take in trade? And what if Hellicopter Ben & Co. interrupt commerce by causing a dollar rout? Could we survive long without imported oil?

Stephen Moore: We've Become a Nation of Takers, Not Makers - WSJ.com: online.wsj.com/article/SB1000142405274870405020457....html
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France is really one of the PIIGS

While the PIIGS do all the squealing in the blood splashed headlines, much bigger countries are in real trouble. Our own budget deficit matches Spain's. With our public sector spending around 44% of GDP any cuts to it will shrink GDP, necessitating more cuts, creating a downward slide in GDP. The willingness of our trading partners to finance all of this foolishness is disappearing, and our politicians show no tendency to make the dramatic cuts necessary, so the only option left is to ride our currency into the ground through Quantitative Easing (digital money printing).

France’s Finances Are ‘No Better’ Than Spain’s, O'Neill Says - Bloomberg: www.bloomberg.com/news/2011-03-31/france-s-finance....html
http://chum.ly/n/7d9c82

Price inflation shows up

It looks like we will see price inflation in life's necessities, even as wages stagnate and unemployment remains high. One of the implications of higher official inflation numbers is higher interest rates. One of the implications of higher interest rates in overwhelming interest costs for the US government, leading to officially recognized insolvency.

Wal-Mart CEO Bill Simon expects inflation - www.usatoday.com: www.usatoday.com/money/industries/retail/2011-03-3...N.htm
http://chum.ly/n/7d9c5f

Out Greeking the Greeks

Bill Gross, steward of the world's largest bond fund tells the truth on US debt.

Gross Echoes Buffett Saying Treasuries Have ‘Little Value’ on Debt, Dollar - Bloomberg: www.bloomberg.com/news/2011-03-31/gross-echoes-buf....html
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