Economy

(GoldScents) – STILL JUST A BABY BULL

It’s sad to say but I’m afraid 90/95% of all retail traders/investors are not going to successfully ride the gold bull. The reason of course is that they are deathly afraid of draw downs. It’s glaringly apparent every time gold pulls back or suffers the slightest correction. Immediately a slew of traders come on the blog and warn of impending doom. “Gold is going to $600” (think Elliot wave). Some are even brave (maybe I should say ‘foolish’) enough to short. Here is one we hear alot lately, “miners are going to get crushed if the stock market enters a new leg down in the secular bear market”.

Pure nonsense!

Let me show you what happened to gold and miners during the 2000-2003 bear market. Read More Here

(Alternet) – Why Banks Try to Make Borrowers Feel Like Sinners When They Can’t Pay off Their Mortgages

Crazy views about homeownership are helping the very bankers who screwed us in the first place. Read More Here

(TheComingDepression) – World economies on verge of currency revaluations to deal with debt

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford
Basically what the world central banks are doing is increasing their money by devaluing it (printing more than it’s worth) and giving it to banks so that they can lend it. Then, when things pick up, simply take the money back and destroy it. Read More Here

(Telegraph) – Euro ‘will be dead in five years’

The euro will have broken up before the end of this Parliamentary term, according to the bulk of economists taking part in a wide-ranging economic survey for The Sunday Telegraph. Read More Here

Galbraith: Economists Should Move into Background, and “Criminologists to the Forefront”

(WashingtonsBlog) – University of Texas economics professor James K. Galbraith previously said that fraud caused the financial crisis:

You had fraud in the origination of the mortgages, fraud in the underwriting, fraud in the ratings agencies.

Senator Kaufman said last month:

Video: 911 The Criminal Enterprise and Its Pattern

Unseen forensic economists expose the pattern of crime at the 5 murder sites, including WTC7 which was brought down in controlled demolition at 5:21PM in the afternoon of 9/11 apparently vaporizing the body of Master Special Officer Craig Miller(secret service – New York field office) on loan from Washington DC

2009 US economy: largest transfer of wealth to financial/political elite in global history

Political “leadership” of the two oligarchy parties spin their economic policy as being for the public benefit. Professional economists increasingly cast economic policy in unprecedented harsh criticism, even calling for public demonstrations against what they claim as gross violations of financial law. Let’s consider current facts of high importance:

The Biggest Bust Will Follow the Biggest Bubble

Our “Crash Alert” flag goes back up the pole…
October is almost half over. Will we get through the month without a major sell-off?

MSM: Jobless spike compounds foreclosure crisis

(MSNBC) – Economists estimate 1.8 million borrowers will lose their homes this year

Concentration of wealth in hands of rich greatest on record

(RawStory) – The wealthiest 10 percent of Americans now have a larger share of total income than they ever have in records going back nearly a century — an even larger amount than during the Roaring Twenties, the last time the US saw such similar disparities in wealth.

The Worst is Ahead of Us

The news that the jobless rate in this country has gone from 9.5 percent in June to 9.4 percent last month has led President Obama to declare that his policies have “saved the U.S. economy from catastrophe” and have led to another rally in the stock market.  While I wish I could agree with the President – I really do wish that – I cannot do so, and I must say, “Not so fast, Mr. Obama.”

The nation quickly descending into chaos

A very dangerous thing occurred last Thursday and Friday. The Federal Reserve monetized roughly 40% of the nation’s enormous debt. This means that the Fed printed money to flow into the economy in order to cover over 40% of the debt burden the U.S. now carries.

Breaking News: Federal Deficit Tops $1.27 Trillion, a New Record

The federal deficit climbed higher into record territory in July, hitting $1.27 trillion with two months remaining in the budget year.

World Prepares to Dump the Dollar

American economists think the world can’t afford to let go of the dollar’s reserve currency status. The world is about to teach them differently.

MSM: True unemployment rate already at 20%

(MSN) – Really, how hard is it to find a job? Was June’s horrid numbers, in which 467,000 people lost their jobs compared to 345,000 in May, a one-time fluke? Or does it mean that all those Wall Street economists who believe the economic recovery is starting are dead wrong?

MSM: Economists point to rising debt as next crisis

(MSNBC) – The Founding Fathers left one legacy not celebrated on Independence Day but which affects us all. It’s the national debt.

Hyperinflation

Inflation is a sustained increase in the aggregate price level. Hyperinflation is very high inflation. Although the threshold is arbitrary, economists generally reserve the term “hyperinflation” to describe episodes when the monthly inflation rate is greater than 50 percent. At a monthly rate of 50 percent, an item that cost $1 on January 1 would cost $130 on January 1 of the following year.

More Economists Say Crisis Is Worse Than Great Depression

More prominent economists have declared that the U.S. is facing a depression that may be even worse than that of the 1930s.

Noting that current efforts to rescue the mortgage industry are less successful than those used during the 30s, Edward J. Pinto, former chief credit officer at Fannie Mae has warned that the current crisis could be worse.

MSM: Futures Volatile After Durable Goods, Earnings

Stock futures were volatile Wednesday morning and now were pointing toward a flat open after investors got a better-than-expected report on durable goods.