US Treasuries No Longer Safe Haven

US Treasuries a few short years ago had the reputation of the world's safest investment. Now one of the world's leading investors is saying that stock investments in emerging markets (banana republics) are a safer bet. This is a change that we will feel in purchasing power, a weaker dollar, inflation, dollar devaluation...choose your term.
Mobius: US Dollar, Treasurys No Longer Safe Havens - CNBC: www.cnbc.com/id/43938134
http://chumly.com/n/ad397b

The Real News

While the press is in a blather over the debt ceiling negotiations some news even more ominous hasn't even qualified. When the Fed began hinting about a week ago that they were considering another round of QE, the press didn't even call it that. Since every round of QE is another technical default on our debt, that would make default number three. We are at the point where we are the sole significant lender to ourselves. Since the stated purpose of the programs is to drive down interest rates, it begs the question, at what rate would we find willing lenders(other than ourselves)? And as rates rise at what rate would we be able to afford only interest and little else in the budget? And since at higher rates it becomes obvious that we carry more debt than we can honestly pay, why would anyone ever loan us anything? No, don't worry. We will just keep lending to ourselves so we can keep all those wonderful programs running that keep us the land of the brave and the home of the free.
http://chumly.com/n/ac7679

Buckler Summarizes US/World Financial Condition

"The fuel to keep the global financial system functioning does not stop at the borders of the US. The"Dodd-Frank Wall Street Reform and Consumer Protection Act” has just produced the first ever"audit” of the US central bank. It reveals that in the period between December 2007 and July 2010, the Fed parceled out $US 16.1 TRILLION in emergency loans to financial entities all over the world. Almost half of this - a total of $US 7.75 TRILLION - was loaned to four US banks. They were Citigroup, Morgan Stanley, Merrill Lynch and the Bank of America. In July 2010 [the cut off date for this"audit”], total US stock market capitalisation was $US 15 TRILLION. The Fed provided about half of that.
"This inflationary explosion is unprecedented in any era. It represents the biggest ever effort to rescue a debt-based system from the ravages caused by its own debt issuing excesses. It has, at best, provided a"remission” for global paper markets. The cost has been devastating for REAL economies everywhere.
"A cancer patient who goes under the knife gets the malignant disease physically removed. If all traces of the malignancy are removed, the patient will recover. If all goes well, the recovery will be permanent with no"remissions”. A life-threatening malignancy is NOT fought or cured by doing everything possible to increase its power and potency. Yet that is what financial authorities in the US and everywhere else have been doing in regard to the life blood of their economies. As this stark fact becomes ever clearer, Washington DC and Wall Street stand helpless before the fact that they can only cure the economy at the cost of killing the financial system which is feeding on it. It’s THAT simple. - Bill Buckler...The Privateer...July 24, 2011
http://chumly.com/n/ac2d54

Marc Faber on Money

My question is, as the world's two leading fiat currencies skip together along the edge of the cliff, who will trust any script when they both succumb to gravity?
My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri...etary)_Reset_Will_Destroy_Cash.html
http://chumly.com/n/ac0afc

Mass Layoffs Crop Up

The private sector job market is the real economy, and it's had no real recovery for years and is headed down hill. Socialism matures into a government dominated economy which only works with ever increasing borrowing from outside its own borders, which explains why the dollar is scraping the bottom of its index (which mostly compares it with the Euro--which is itself being hit with the defibrillator).
Return of Mass Layoffs a Grim Sign for U.S. Workers | Daily Ticker - Yahoo! Finance: finance.yahoo.com/blogs/daily-ticker/return-mass-l....html
http://chumly.com/n/ac0afb

Gold and Silver Signal more Concerns on Dollar

"S&P said in a report that even if Congress raises the limit in time to avert a default, it might lower the U.S. sovereign credit rating to AA+ with a negative outlook if a deal isn’t accompanied by a"credible solution” on the debt burden."
Copper, Oil, Grains Drop as U.S. Debt Talks Falter; Gold Jumps to a Record - Bloomberg: www.bloomberg.com/news/2011-07-25/gold-climbs-to-r....html
http://chumly.com/n/abab9c

Super Congress?

This sounds like a great way to concentrate power even more and produce less accountability in DC. Talk of balance in DC...they have been doing nothing but growing government for decades, and now balance is merely slowing that growth. With total direct govt. spending at 44%, how much of GDP is private sector that is not dependent on govt. spending? Maybe 15 or 20%? Can we go farther down this road? If we want an economy left, govt. must shrink dramatically.
'Super Congress': Debt Ceiling Negotiators Aim To Create New Legislative Body: www.huffingtonpost.com/2011/07/23/super-congress-d....html
http://chumly.com/n/abaa84

Parallel Universe

‪In the world I live in I work my butt off in order to pay all my taxes, insurance, feed, shelter and cloth my family. If this video is even half true it is a glimpse into how our government can spend 1.6 Trillion more than it brings in per year. Its official spending exceeds revenues by about 69 percent each year lately. That is just the official numbers. With the official debt numbers up by about 4 Trillion in two years, it is actually worse than 1.6 Trillion per year. And that is just the official debt numbers. It doesn't include the debt from the bailout of Fanny and Freddy. Wake up America. Your government doesn't tell you the truth. Hell, it doesn't even believe Truth exists so why should it stick to it? Or maybe the problem is that it doesn't believe Hell exists, so is free to start "organizing" it here on earth.
ELABORATE WELFARE HOUSING PROJECT‬‏ - YouTube:


http://chumly.com/n/ab5391

The Upside-down World of Liberalism

Only in the upside-down world of Washington DC could the bottom of the debt hole we have dug be termed a "ceiling". It is a profound mistake to let the liberal press and the left frame this debate as being over a ceiling instead of a grave.
http://chumly.com/n/ab2edb

More on Eroding Euro

Just the possibility that the Euro is headed to the monetary graveyard should give us pause. If it dies, well, the dollar has not been stronger than it over the past year, so the dollar will probably suffer the same fate soon after or as part of the same event. If the world's two leading fiat currencies implode, it holds many implications for trade, economies, and what we call money.
How many more times can eurozone visit 'last chance saloon'? - Telegraph: www.telegraph.co.uk/finance/comment/damianreece/86....html
http://chumly.com/n/ab2ed9

Bank for International Settlements Accountable to Nobody

Typical of powers governments and institutions take for good cause, ultimately it seems to end up used for evil as in this case of the BIS.
Frits Bolkestein: BIS shelters money for dictators and deadbeats | Gold Anti-Trust Action Committee: www.gata.org/node/10165
http://chumly.com/n/ab2ed6

Ron Paul on the "Default"

Paul observes: "The government is insolvent, as there is no way that this massive sum of liabilities can ever be paid off." When individuals or businesses go into debt they call it going into the hole, when socialists in DC do it they call the bottom of that hole a ceiling. How would it change the conversation if they were debating deepening the hole instead of "raising the ceiling"?
Default Now, or Suffer a More Expensive Crisis Later: Ron Paul - Bloomberg: www.bloomberg.com/news/2011-07-22/default-now-or-s....html
http://chumly.com/n/ab2ebf

Consumers Turn to Credit Cards

This happened several years ago as we headed into the last recession. It actually produced rising GDP numbers as people spent more on credit. Maybe it will be counted as a "positive" and part of the recovery this time as well by Bernanke and our chorus of liberal economic liars.
Consumers in U.S. Relying on Credit as Inflation Erodes Incomes - Bloomberg: www.bloomberg.com/news/2011-07-21/consumers-in-u-s....html
http://chumly.com/n/aac8c5

Jim Sinclair on the Debt Ceiling

The idea that an increase in the debt ceiling is a solution to anything is nonsense. Calling an increase in the debt ceiling a solution to a debt problem, is too stupid to be stupid. - Jim Sinclair
Well said. It is only DC that would call the hole we are in a "ceiling", just more liberalism thinking we are moving up even as we sink.
http://chumly.com/n/aac8c4

Greece Suffering

Greece illustrates where economies dominated by their own government end up. Eventually the ability to borrow more dries up and the economy, which in the long run gets its vitality from the private sector, is just a hollowed out shell ruled by corrupt, incompetent weiners serving their own interests and that of their powerful allies. American is different than Greece in that it can deffer the hardship by printing money until that destroys the value of its currency, all the while avoiding the necessary shrinking of the public sector.
The People Behind the Numbers: Greece Threatened with Widespread, Long-Term Poverty - SPIEGEL ONLINE - News - International: www.spiegel.de/international/europe/0,1518,775301,....html
http://chumly.com/n/a9a52d

British Deputy Prime Minister Sees the Obvious

The multi-year financial crisis brought on by irresponsible public spending/borrowing is entering a new phase, and even the politicians will have to admit to it.
Nick Clegg: 'I fear we're on the brink of another financial crisis' - Telegraph: www.telegraph.co.uk/news/politics/nick-clegg/86442...email
http://chumly.com/n/a93fd6

European Banks Looking Shaky

Europe's banks may not be any more solvent than our own, but maybe there disclosure is better. We changed the accounting rules for our banks so that they would be solvent on paper, but ultimately your sins do find you out and the smooth tongued financial wizards get exposed.
European stress tests: banks set for 'chaos Monday' after nine fail - Telegraph: www.telegraph.co.uk/finance/newsbysector/banksandf....html
http://chumly.com/n/a83e4c

Fannie and Freddie Debt Rating at Risk

From an accounting/disclosure standpoint Fannie and Freddie debt should be considered part of our total federal debt. Everyone knows it is only good to the extent the federal govt. backs it. The reason it is not added to the federal total is that the truth of the size of our debt is just too grim to admit to. As the article notes: "S&P said government-controlled Fannie and Freddie, along with certain Federal Home Loan Banks and Farm Credit System Banks, could also default on their debts, given each institution's "direct reliance on the U.S. government.""
S&P warns it may downgrade Fannie, Freddie credit - www.usatoday.com: www.usatoday.com/money/economy/2011-07-15-fannie-m...n.htm
http://chumly.com/n/a83afa

It IS Going to be Different This Time

The interviewee in this article points out the obvious trend toward a statist or totalitarian end game to this crisis. The governments that caused it all will assume all power in the name of containing the crisis, of course. With even our once freedom loving society dominated by Marxist assumptions at is hard to ignore the obvious trend. Of the crisis we are in Felix observes: "...we have never seen, me in my lifetime I have never seen anything like this, and I think not even in the last 100 years has anything like this happened."
My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chumly.com/n/a7bce7

Euro Crisis Continues

I doubt if anyone can be sure that the Euro will survive for long, but here in the States we are not much better. The Dollar Index does a litter more than compare the Dollar and the Euro, but not much, and the dollar remains week in spite of all the turmoil.
Debt Quicksand: Europe Fights the Growing Currency Crisis - SPIEGEL ONLINE - News - International: www.spiegel.de/international/europe/0,1518,774483,....html
http://chumly.com/n/a7bb49

Helicopter Ben Denies Status of Gold

As non-western central banks scramble to diversify out of the Dollar and Euro and accumulate gold by the ton, our desperate leaders continue to exploit their management position, extracting value from all those who hold dollar denominated assets.
Bernanke: Gold Isn’t Money - July 13, 2011 - The New York Sun: www.nysun.com/editorials/when-gold-isnt-money/8742...87421
http://chumly.com/n/a72285

Why Central Planning Can’t Work

One of the mantras of the left is that as the economy in our country has grown more complex and inter-related, only a fool would assume it could work without government management. In other words, the free market was great for the founding fathers, but things are just too complex now to work on there own, and government oversight is necessary. While it might sound reasonable at first, the statement is as illogical as the rest of leftist thinking (sorry for the oxymoron). When has the government been able to run a lemonade stand well, let alone something as complex as an economy? And the more complex the economy gets, the more information it would take for central planning to work. In fact to compete with the free market which responds to the information and needs of all its participants in its own decentralized manner, central planning would have to collect almost infinite amounts of information, correctly analyze it, and get all the correct information to all the correct places in a timely manner so that resources would be efficiently allocated and human needs met. In other words, God would have to take up full time residence in DC, because central planning requires omniscience for it to work well. I don’t think He is interested. In fact, I don’t think He approves of the fraud, deceit, theft, lies and so forth, which characterize our current government. The government, whose job it is to protect our lives, our liberty, and our property, has instead become the biggest threat to all three of the fundamental God given rights.

Speaking of the government assuming god-like attributes, it sounds like the Fed is hinting at another round of Quantitative Easing, to"stimulate” the economy. This unofficial part of our government whose job it is to manage the public currency for private gain all behind smoke, curtains and mirrors seems to believe it can create wealth out of nothing, just like the Creator. For the humanist it must work because we are smarter, wiser and better in every way than all those who came before, and therefor"it’s going to be different this time”. Nothing can stop the upward trend of history in the liberal humanist’s world; it doesn’t matter how many times the same thing has failed in the past, or how many mutually exclusive"truths” they have to simultaneously believe. While it only takes a mustard seed’s worth of faith to please the God of the Bible, to believe in our government’s competence and virtue would take something more than 14 Trillion dollar’s worth of faith. Maybe I just need to apply for food stamps, sign up for unemployment, write a government grant and enroll my land with the Dept. of Ag and I will finally understand.
http://chumly.com/n/a6ee5a

The Real News is What is Not Said

Markets rallied on the news that the Fed would stimulate the economy? First of all the Fed can ultimately only liquidate the economy, not stimulate it. Sure it is stimulative when you rob value from foreign holders of your debt by printing more money, but in the long run it destroys your own currency. Why not just say the Fed is considering QE III? And is this a market rally, or are investors just looking for ways to ride out higher inflation? Is that why Gold and Silver broke out of their trading ranges as well today? Will our Criminal-in-Chief be held responsible for all this? I think we should liquidate the Fed before they liquidate us.
Gold Prices Flirt with $1,600 on Hint of QE3 - TheStreet: www.thestreet.com/story/11183258/1/gold-prices-hit....html
http://chumly.com/n/a6e59c

Post from greshambouma at CHUMLY

Government spending is a horrible way to stimulate an economy because it stimulates the growth of a public spending dependent private sector. When the public spending shrinks, the private sector related to it loses its life support. With direct public spending at around 45% how much of a truly private sector do we have left? We have, by the way, been growing our economy by public borrowing and spending for decades. Ever since the phrase "Its the economy stupid".
http://chumly.com/n/a6a597

PIIGS Still Bleeding

While "austerity" is necessary, their government borrowing and spending dependent economies will crater without rescue, but any rescue is money forever gone, and subsidizes all that is wrong with their economies. They are just like us in that they are a socialistic system that has matured to the point of bankruptcy. We used to rescue countries like these, now we need rescue, and no one is big enough to do it even if they wanted to.
German 'Nein' leaves Italy and Spain in turmoil - Telegraph: www.telegraph.co.uk/finance/8631219/German-Nein-le....html
http://chumly.com/n/a67c3c

Central Banks Continue to Remonetize Gold

Foreign Central Banks have become buyers of gold in the last several years as the sun setts once again on the liberal fiat currency scam. It promises a battle to the death, but the trend is clear at this point.
India to import 350 tons of gold, 1200 tons of silver | www.commodityonline.com | 3: www.commodityonline.com/news/India-to-import-350-t....html
http://chumly.com/n/a47372

Europe Continues to Illumine our Future

When you carry mountains of debt, a small increase in the rate of interest you pay can overwhelm your budget, which is why our Fed plays the dangerous game of interest manipulation it does. Ultimately these bailouts are all about the banks, as the following quote says: "We are exploring several possibilities. If we continue down the current road, all private debt in Greece will be converted into sovereign debt and we will have bailed out the banks,"...
ECB tightens noose on Southern Europe - Telegraph: www.telegraph.co.uk/finance/economics/8624143/ECB-....html
http://chumly.com/n/a47270

Quick Look at Obama's Legacy

This is a short and well done little video. We tried to solve the problems created by the creeping socialism of Bush by electing someone who is imposing a galloping socialism. Maybe we should elect someone who is loyal to the principles espoused in our founding documents. YouTube - The Obama Legacy: www.youtube.com/watch_popup?v=gQD9IaGoLWk
http://chumly.com/n/a28207

Australia's Reserve Bank director Warwick McKibbin Warns of Financial Wreck

If you are wondering why there are steady international efforts underway to move away from the dollar as international reserve/trade currency, consider the following quote: "As the US created more dollars to inflate away its debt repayment obligations, countries that are linked to the dollar, including China, India and parts of Latin America, would suffer 1970s-style inflation."
Global 'train wreck' coming - world - business | Stuff.co.nz: www.stuff.co.nz/business/world/5218159/Global-trai...oming
http://chumly.com/n/a1b98c

Rick Perry and Islam

Politically correct thinking promotes a universalistic attitude toward different cultures and religions, failing to recognize that each culture/religion has inevitable political/civil implications. Show me a country dominated by Islam that does not have a totalitarian government. Show me a humanist/secular state that is not socialist (then show me a socialist state that is not bankrupt in every sense). If we want what America once was, especially in regards to freedom, we must not abandon the fundamental assumptions that gave it to us in the first place.
Office of the Governor Rick Perry - [Press Release] Perry Attends Groundbreaking for Ismaili Jamatkhana and Center: governor.state.tx.us/news/press-release/3666
http://chumly.com/n/a13abc