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Saturday, December 31, 2011

Economic Crisis In Britain Taking Toll On Mental Health

Britain's economic crisis appears to be taking its toll on the mental health of the nation. According to the National Health Service, more and more people are resorting to anti-depressant drugs, possibly to help them get through periods of unemployment and the mounting economic insecurity.

But it's great for the profits of Big Pharma!

Tuesday, December 13, 2011

Overcounted Home Sales

Data on sales of previously owned U.S. homes from 2007 through October this year will be revised down next week because of double counting, indicating a much weaker housing market than previously thought.-Realtors: We Overcounted Home Sales for Five Years

Tuesday, November 29, 2011

Planning For The End Of The Euro

From the Financial Times:

Concerned that Europe’s political leaders are failing to control the spreading sovereign debt crisis, business executives say they feel compelled to protect their companies against a crash that can no longer be wished away.

Read the rest: Businesses plan for possible end of euro

Tuesday, November 22, 2011

Is There a Risk The Euro Will Collapse?

Wells Fargo Chief Economist John Silvia and Euro Pacific Capital Senior Market Strategist John Browne on the European debt crisis and its impact to the Euro and U.S. economy.

Saturday, October 1, 2011

Home Prices Unlikely to Recover Before 2020

Home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday.-No Rise in Home Prices Until 2020: Bankers

Economists Predict Another Recession in U.S

“We are going into a brand new recession. We had about a 2 year expansion and I’m sorry to say, there’s no way out of this, all we do is study recessions and recoveries and we do not make these calls lightly and we are not eager to make them, but when the objective evidence presents to us patterns that are recessionary, we have to call it like it is.”

Saturday, August 27, 2011

The Economic Situation Is Set To Get Much Worse

A new batch of economic figures released this week confirms a renewed economic downturn, amidst an intensified assault on jobs and living conditions internationally.

The Organization for Economic Cooperation and Development (OECD) said the gross domestic product of its member countries grew by only 0.2 percent in the second quarter of this year, dropping from 0.3 percent in the first quarter.
Growth has slowed for four consecutive quarters, hitting the lowest level in two years.

The OECD’s 34 members include the UK, Russia, Japan, Canada, the United States and most countries in the Eurozone. Most of the member nations separately announced their growth figures earlier this month. German economic growth all but collapsed, expanding only 0.1 percent in the second quarter, compared to 1.3 percent in the first.

The Japanese economy shrank 0.3 percent, after contracting .9 percent in the first quarter. The French economy stopped growing completely, after an expansion of 0.9 percent. The United Kingdom grew just 0.2 percent, after expanding 0.5 percent in the first quarter.

Three years after the financial crash of 2008, none of the problems that have plunged the world economy into a recession, resulting in the destruction of millions of jobs, have been resolved. The bailout of the financial system has transferred the bad assets of the banks onto government balance sheets, and the ruling class is responding through brutal austerity measures and intensified exploitation. - Economic growth stalls amidst debt crisis, austerity

Greek Bailout in Trouble

Multisource political news, world news, and entertainment news analysis by

Saturday, August 20, 2011

US streets full of formerly middle class

Fear Grips Global Markets

Global fears of another US Recession have sent stocks tumbling again on Wall Street. Europe's own issues with debt and dealing with it also weighed in on equity issues around the world.

Saturday, August 13, 2011

Bad Economy Rocks Hollywood!

Halting tentpole movies is certainly is happening with more regularity in Hollywood lately. Universal recently halted production on a version of At The Mountains Of Madness that Guillermo del Toro was going to direct with Tom Cruise starring, and it also halted an adaptation of King's The Dark Tower that Ron Howard, Brian Grazer, and Akiva Goldsman were ready to do, in a trilogy of movies and two limited run TV series. And just this week, DreamWorks halted Southpaw, a boxing drama that has Eminem set to star in his first role since 2002's 8 Mile with Antoine Fuqua directing. It's clear that studios are making their bets more shrewdly, particularly with the economic uncertainty that has rocked the stock prices of parent companies of film studios. Even if it means bruised feelings from stars, directors and producers accustomed to having it their way. -SHOCKER! Disney Halts 'The Lone Ranger' With Johnny Depp And Gore Verbinski

Friday, August 12, 2011

Nothing compared to what is coming

A lot of people like to blame the increasingly bizarre behavior of the American people on the economy, but the reality is that things are not nearly as bad as they are eventually going to be. Yes, the U.S. "Misery Index" recently hit a 28-year high. Tens of millions of American families are deeply suffering. Unemployment is rampant and unprecedented numbers of Americans have been getting kicked out of their homes.

But that is nothing compared to what is coming.

So what is America going to look like when true economic suffering comes along?

-20 Signs That The Fabric Of American Society Is Coming Apart At The Seams

Will the Federal Reserve Make a Move for QE3?

Many analysts believe - while the Fed didn't offer up QE3 in its statement Tuesday - there's a complicit wink and nod which says, it's on its way.

Multisource political news, world news, and entertainment news analysis by

"The US fiscal position is a disaster if we include the unfunded liabilities and some kind of default will occur," he [Marc Faber] predicted.

He went on to explain that there are two ways that can lead to default: 1) Not paying interest and restructuring debt or 2) repaying the debt and the interest in a depreciated currency. Faber argues that the US Dollar is losing more value in terms of purchasing power than other currencies.-'I Can Smell QE3, QE4 and Many More,' Says Marc Faber

Wednesday, August 10, 2011

Spreading Concerns

Concerns about European debt issues have rocked the markets for some time now, though the fears have mainly been limited to smaller, so-called peripheral economies, such as Greece and Portugal.

However, analysts said the emergence of new worries that the region's biggest economies may also be vulnerable has fanned fears further.

"As the economies get larger, the chances to bail them out are going to get slimmer," said Mr Robinson.

On Wednesday, France's Cac share index ended down 5.5% despite the French government's assurance that its credit rating was not under threat.

While ratings agencies Moody's, Standard & Poor's and Fitch reaffirmed France's AAA credit rating, analysts said investors remained skepitcal about the country's financial health and the stability of its banking sector.

Shares of French lender Societe Generale fell as much as 20% after it was forced to "categorically" deny it was under financial pressure. The shares ended 15% lower.

"I think there's concern about just how much Greek debt French banks really do hold and how much the European Central Bank is willing to backstop all this," said Bret Barker of TCW.-Asian stocks are mixed on growth and Europe debt fears

Tuesday, August 9, 2011

Paradise Lost

If you asked Joe Six Pack if our society continues to be based on freedom and liberty, he would probably recollect his 9th grade American History teacher and respond "Yes, of course." If you were to ask him if our society was now based on a Stalinesque model of central planning, a totalitarian system in which the Government claimed all power, and there were no freedoms that the government did not allow, he would probably say, "No way." Joe hasn't got a clue. Hey, believe me. I've been trying to get across to Mr. Six Pack for years. He has been issued blinders by the state. He hasn't got a clue.

It appears to me that the markets are rigged. All games that can be rigged will be rigged, sooner or later. The Fed, working in league with the U.S. Government, rigs the U.S. markets. But don't think for a second that the Fed has some kind of monopoly on a situation where rapacity pervades honest reason. All markets are rigged. Central bankers, the world over, are primarily involved in fleecing the people. The fact that the Fed is the most powerful of the Central Bankers, and that they are primarily responsible for perfecting the insidious contrivance called inflation, has not kept the rest of Central Bankers of the world from entering into a game of "catch up". As far as they are concerned, there is only one motive, and that motive is economic world domination. Which Central Bankers will dominate will depend on which ones end up with the most. That's just the nature of absolute corruption. That is the reason that whole world is currently strapped with a fiat system. The ability to create money, out of thin air, provides for absolute economic power. Absolute power equals absolute corruption. It's as simple as that. By rigging the markets, through various forms of intervention, the central bankers have set up a scheme whereby the wealth of the world could be siphoned off at will.

The reason that this fiat system has become so all pervasive in the world is the lure of an uncapped, unending source of credit that is availed to all governments who are willing to play the Central Banker's game.

-Johnny Silver Bear: Paradise Lost

Sunday, August 7, 2011

Greenback’s status as the world’s reserve currency is set to wane

In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”-Dollar to Be 'Discarded' by World: China Rating Agency

America-by-the-Numbers: Jobs, Jobs, Jobs, Jobs, Jobs

How can the unemployment rate go down while the number of people working also goes down?

Collapse Crisis Escalates

Economy Terminally Ill

Amidst the continuing debate over the debt ceiling, with the deadline looming, CNNMoney reports the “worst week of 2011” for stocks, citing stagnant growth numbers for the second quarter.

Analysts at one bank, the Zurich, Switzerland-based Credit Suisse, have even predicted that, if the federal government defaults on its payments, U.S. stock prices “could tumble 30% over the following six months to a year.” Given the varied doomsday scenarios currently circulating in both the news cycle and the markets — accompanied as they are by a healthy dose of esoteric financial and economic jargon — it’s easy to feel confused and overwhelmed.

And while market anarchists don’t all agree on the niceties of economic doctrine, our internal controversies haven’t stopped us from citing plenty of evidence to demonstrate why the state ought to be removed from the markets altogether. Rather than promoting order, predictability and stability in the economic system, the state’s coercive palisades cause the kinds of market volatility we see today.

Prices in a genuine free market, one without the ruling class’s needless restrictions on consensual arrangements, would signal to investors and consumers where their labor and resources ought to be directed — to those activities that fulfill a substantive, economic need or demand.

Were the price of a particular good or service distended with the addition of rents, real competition would drive that price away from the exploitative levels only possible due to state-created conditions of monopoly. Without arbitrary legal commands to enforce what economist C. Ford Runge describes as the “right[] to exclude others from a stream of rents,” then, today’s privileged corporate giants would soon wither.

The labor hours currently tied up in feathering the nests of the power elite would be freed to propel the new economy. The societal wealth and resources that are today dissipated in the inefficiencies of the corporatist economy could be invested in the sorts of endeavors that free human beings really want.

Instead of a society wherein the masses serve as cogs in institutions that serve only the very few, the free market would necessarily breed more just and efficient social structures. Today, we live and work in an environment where Washington and Wall Street parasites connive together to limit our options for profit.

Through volumes of laws and regulations, the chances for free exchange and association are suffocated, rendering us a captive market for price gouging corporate giants. Just like the state itself, state-protected economic actors have no incentive but to squander resources and produce garbage products; they have no fear that true competition from below will impel them toward economical methods and thus no need to adopt them.

Resources under statism therefore gather in institutions that neither desire nor are able to serve the public at large — to be understood not as an organism in itself, but as the aggregate of individuals’ freely made choices. What we’re witnessing in the stock market is that, without the sensory and responsive functions of price in a freed market, the economy will always be terminally ill.

An economy based on mutual respect between sovereign individuals, on trade and cooperation, is the pathway to the solution and the solution itself. The state and the corporate economy profit from our ingrained attitudes; they win when we fail to dispute the myth that the financial elite supports the free market.

They don’t want to compete with the fluidity and logic of authentic social power, of an economic system that allocates resources not through the circumscriptions of privilege but through voluntary exchange.

-by David S. D'Amato The Terminally Ill Economy under Creative Commons

Saturday, August 6, 2011

Global Economy Shaking

The collapse in stock markets represents clouds piling up in the global economy’s sky. Firstly, the U.S. economy is stagnating and the huge cuts that are following the deal between the Democrats and Republicans in Congress to raise the debt ceiling threaten to strangle an already weak recovery.

"What was unthinkable six months ago, the U.S. running the risk of falling into recession in 2012, is a thought that more and more now consider. It is this insight that makes the entire ground shake," Businessweek wrote on 5 August.

Secondly, the debt crisis is deepening. The EU leaders had hoped that the crisis settlement in July - new loans to Greece, reduced interest rates on emergency loans and longer maturities, and some debt relief for Greece - would give some respite. But these measures have not calmed the financial markets.-US recovery strangled and European debt crisis deepening

Wednesday, July 27, 2011

Bachmann Says No

Bachmann met voters in the Des Moines suburb of Ankeny, Iowa, Tuesday to reiterate her position on the debt ceiling. The congresswoman has vehemently refused to vote in favor of raising it from $14.3 trillion to $16.7 trillion, and said she will continue to do so, amid talk of conditions under which the debt would be raised, as opposed to if it will actually happen or not.
“We need to change the premise here,” she said. “We need a fundamental restructuring of the economy."


Friday, July 22, 2011

Social Crisis!

The economic crisis manifests itself in virtually every facet of working class living conditions in the US. New state budgets include devastating cuts to basic social programs, even as the job and housing markets continue to worsen and need grows.

17,000 apply for 1,800 jobs in Louisville, Kentucky.

In the span of a few days, 16,837 people lined up at the Kentucky Office of Employment & Training last week to apply for 1,800 openings at Ford’s Louisville Assembly Plant. The company will select applications to review through a lottery process.

The positions, many nightshift line jobs assembling the Escape SUV beginning in the fall, will pay only $15.51 per hour—half that previously earned by autoworkers in the US. Benefits will not begin for new hires until after eight months on the job. Steven Stone, the United Auto Workers chairman at the Louisville plant, defended the wages. He commented to the Louisville Courier-Journal, “Those are good jobs even though they are ‘two tier.’ ” The Louisville plant is among the first in the country to implement the two-tier system.

The line-up is similar to a 2009 run on job openings at General Electric’s Louisville plant, when 10,000 applicants vied for 90 positions. Kentucky is attractive to corporations concentrated in the Midwest because of its “business friendly” tax structure and low wages. Louisville has higher than 10 percent unemployment and widespread poverty.

-Notes on the US social crisis

Thursday, July 21, 2011

Americans are using credit cards to pay for basic necessities

Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.

U.S. Consumers Relying on Credit for Basic Necessities

Wednesday, July 20, 2011

The United States of Greater Germany

Homebuyers and firms are facing higher lending costs thanks to the spiralling debt crisis across Europe.
In a dramatic warning, the Bank of England said the risks posed by turmoil in the eurozone pose a substantial threat to the UK.
The Bank said the funding costs faced by UK banks were being pushed up because of the risks of economic collapse on the Continent.

Euro meltdown: Debt crisis threatens interest rates, says Bank of England

China's Future

Very rapidly, China is beginning to encounter the same economic pressures as the U.S. Some are simply the natural outgrowth of China's supercharged development. Others are being brought about by policy errors – similar, in fact, to those made by the West before the 2008 financial crisis.

-Is China facing an American future?

Wednesday, July 13, 2011

More Stimulus, Please!

Federal Reserve Chairman Ben Bernanke told Congress Wednesday that a new stimulus program is in the works that will entail additional asset purchases, the clearest indication yet that the central bank is contemplating another round of monetary easing.-Bernanke: Fed May Launch New Round of Stimulus

Well, what a surprise! Of course, Bernanke doesn't have much else in his pathetic little bag of tricks. We knew this was coming. Get ready for more Fed induced inflation (higher prices on everything for you and me, in other words, an indirect tax on our incomes) and an even bigger collapse when it finally arrives.

Sunday, July 10, 2011

Debt Deflation

In this edition of On the Edge, Max Keiser interviews Steve Keen, economist and author of the book Debunking Economics.

He says that debts have spiraled out of control and the reason is shadow banking system. The program touches on the correlation between the US-EU debt crisis and the worsening Greek economy.

Monday, July 4, 2011

United States of Gloom

With the United States mired in three foreign wars, beaten down by an economy that shows few signs of emerging from deep recession and deeply disillusioned with President Barack Obama, his Republican challengers and Congress, the mood is dark.

The last comparable Fourth of July was probably in 1980, when there was a recession, skyrocketing petrol prices and an Iranian hostage crisis, with 53 Americans being held in Tehran.

Frank Luntz, perhaps America’s pre-eminent pollster, argues that his countrymen are much more downbeat now than in 1980. “The assumption with the Carter years was that it was a failure of the elites, not the system. We thought the people in charge screwed up. We didn’t blame ourselves.” Remarkably, many Americans think things will only get worse and the good times will never return.

Down on the Fourth of July: the United States of gloom

Bringing Home The Bacon At Six Dollars A Pound?

Bacon prices are expected to soar this summer — just in time for peak BLT (bacon lettuce and tomato sandwich) season.

The Crisis We Should Be Panicking About: Bacon Prices

Further obstacle to the second bail-out for Greece

....S&P on Monday became the first agency to warn that a plan, pushed by France and endorsed by Germany, for banks to roll over their holdings of Greek debt into new bonds would constitute a “selective default”.

ECB will continue to accept Greek debt

Sunday, July 3, 2011

Charts of the Coming Depression

You don’t have to be a conservative or a liberal, or anything at all, to understand that America is about to be flattened by a tidal wave of debt.

4 Little Charts Show the Coming Depression

Wednesday, June 29, 2011

Rich Dad Robert Kiyosaki: Prepare for the Coming Depression

Rich Dad "Robert Kiyosaki" and his entire adviser team discuss how they have prepared for the coming depression:

It certainly seems as though the entire financial culture in America is changing.

Once upon a time everyone wanted to know how to get rich.

Now everyone wants to know how to survive the collapse that is coming.

As I have written about previously, even people like Tony Robbins and Donald Trump are warning that an economic collapse is coming.

Economic pessimism is seemingly everywhere and almost every recent survey indicates that the American people are losing faith in the U.S. economy.

Rich Dad, Poor Dad, Prepper Dad? Even Robert Kiyosaki Is Warning That An Economic Collapse Is Coming

Greece Blackmails Europe

Core Euro-zone countries are effectively being black mailed by Greece to finance Greece's public budget deficit and the interest payments due on the ever expanding debt mountain, none of which that the Greece population are having to bare the consequences of, for were they then Greece would have gone bust Iceland style a year ago. The facts are that IF Greece were not being financed as a consequence of being within the Euro-zone then all of the middle class of Greece would have already been swiftly wiped out, as the value of earnings, savings and assets would have collapsed along with the Greek economy as a consequence of the markets immediate adjustment to the true level of debt and inability to ever repay.

Bankrupt Greece Blackmails Europe, Bailout or Euro Zone Dies, Global Financial System Collapse

Tuesday, June 28, 2011

Big Banks A Threat!

Thomas Hoenig, the head of the Federal Reserve’s Kansas City branch, has made a name for himself as an implacable foe of Too Big to Fail financial institutions.

He tried to turn up the heat on the giants on Monday, making the case that they threaten capitalism itself.

Biggest banks threaten 'future of capitalism,' Fed official says

Sunday, June 26, 2011

Economic Collapse a Mathematical Certainty

The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth,our work,our food,our government,even our relationships are affected by money.

No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to.

This collapse will be global and it will bring down not only the dollar but all other fiat currencies,as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide.

Food Prices Skyrocket! Why Are They Rising So fast?

...when Ben Bernanke tells us that inflation is very low, that really is a lie. On the stuff that people spend money on every day (like food and gas), prices have gone up dramatically.

Sadly, this is not just a phenomenon that is happening in the United States. The truth is that the entire planet is rapidly approaching a horrific global food crisis.

Over the past year, the global price of food has risen by 37 percent and this has pushed approximately 44 million more people around the world into poverty.

When food prices rise in the U.S. it may be painful for millions of American families, but around the world a rise in food prices can mean the difference between surviving and not surviving.

Why Are Food Prices Rising So Fast?

Thursday, June 23, 2011

Only Solution is Monetary Collapse

The current situation regarding the state of recovery in the US has turned from precarious to dismal and as we predicted a year ago May we will have to be treated to QE3 something no one really wants, but as we said before it is inevitable. The Fed and their controllers, the member bank owners of the Fed, know the present approach doesn’t work and it is only a matter of time, as a result of their policies, when more stimulus will be needed, which in turn leads to more inflation.

Due to the current state of affairs Fed Chairman Bernanke has been making one appearance on TV after another. He gets grilled over and over again and he doesn’t like the public reception at all. He shouldn’t, as more and more observers see that two quantitative easings haven’t worked. They cost at least $3.6 trillion in funds created out of thin air, and all they have done is prolong the agony. The flip side is the policy has caused higher inflation. What else can one expect when deficits astound and the Fed has to buy $1.6 trillion in Treasury bonds. A large percentage of this debt is used to wage perpetual war for perpetual peace. During this process the President has bypassed the Constitution and is deliberately repressing the freedoms of American citizens. There no longer is a separation of powers, but virtual dictatorship bought and paid for by Wall Street and banking.

It should be firmly implanted in your mind that your masters in government and those controlling government brazenly and arrogantly believe that they know better what is good for you, than you do. That is why when they speak to you their answers are dripping with condescension - as if to say, how dare you question what we tell you. Fed Chairman, Mr. Bernanke, is a perfect example of this. He, others and his predecessors have created a false economy based upon perpetual debt and upon money and credit being created out of thin air. Today that is accompanied with zero interest rates, a combination that in time can only bring a falling dollar, inflation and a collapsing economy. Mr. Bernanke appears to believe that an increased supply of money has little or no effect on the comparison between money and the prices of goods. He has to be living in a fairy tale land. Thinking such as this can only end up making a bad economic situation worse.

World Debt is Unpayable, The Only Solution is Monetary Collapse

Wednesday, June 22, 2011

Another "Lehman Moment"

Almost three years ago crushing debt brought Lehman Brothers, a 158-year-old investment bank to its knees. It was a bankrupctcy bigger than any our world has ever seen. Lehman's failure was 10 times the size of Enron. If fact, its demise was bigger than the spectacular failures of General Motors, Chrysler, Worldcom, Delta Airlines and Enron. Combined!

A Thaw Before the Storm? How the Debt Ceiling Could Shock the U.S. Economy With Another "Lehman Moment"

Wednesday, June 15, 2011

Inflation Hurts The Poor More

Inflation Inequality...

The IFS said that the difference had been particularly strong since 2008.

The poorest 20% of households faced an average annual inflation rate of 4.3% between 2008 and 2010, while the richest 20% only had a rate of 2.7%.

People on lower incomes spend more of their money on gas, electricity and food, which have risen sharply.

At the same time, people with higher incomes have benefited more from lower mortgage rates.

Pensioners have experienced higher inflation than non-pensioners and pensioners relying on state benefits have been hit particularly hard
-Inflation 'is higher for the poor than for the rich'

Tuesday, June 14, 2011

Gold $1,600, Silver Near $50 by Year End?

Gold should trade to just over $1,600 an ounce by the end of 2011 and silver should be flirting with $50 an ounce as governments will need to maintain a loose monetary policy despite the phasing out of stimulus packages in the U.S., according to the director of a major research firm. - Interview: Gold Should Break $1,600, Silver Near $50 by Year End –GFMS’ Newman

Saturday, June 11, 2011

US Corporate Model Causing Depression

A recent poll revealed that almost half of the US thinks another great depression is on the horizon. Why are Americans expecting another economic disaster? Political columnist Harold Meyerson gives his take on how to keep America afloat.

Wednesday, June 8, 2011

The Collapsing Dollar

Last week the U.N. warned of a possible collapse of the US dollar –if its value against other currencies continues to decline. The U.N. mid-year review of the world economy did not get extensive coverage. Their economic division said that a crisis of confidence in the dollar, stemming from the falling value of foreign dollar holdings, would imperil the global financial system. This trend had recently been driven by interest rate differentials between the U.S. and other major economies and growing concern about the sustainability of the U.S. public debt, half of which is held by foreigners including the Chinese government. - Gold and the Collapsing Dollar

Friday, June 3, 2011

The Devaluation of Paper Money Can’t Be Stopped

We believe that the devaluation of paper money can’t be stopped and is ongoing, we are at the end of a cycle. First of all the middle class, which act as an important buffer against boom/bust cycles in the economy, needs to be wiped out before the financial imbalances can sort their effect. The problems in Europe won’t be reversed, we have passed the tipping point, politicians and monetary authorities try to rescue the situation purely for their own benefit: re-election! Next to that they are not really addressing the structural problems that have brought us in the situation we are in. In fact what the politicians are doing is exhausting the system for the inevitable break down. The same is happening in the US where the housing market keeps on deteriorating, a development we predicted several years ago. Don’t be surprised if the housing market in the US will fall by another 50%. The reason is, that as previously stated, mortgage owners don’t have any real responsibility for their mortgages and can thus walk away whenever it suits them. And the more the market deteriorates the more homeowners will walk away.

-Silver the new gold?

Why Gold Is Money


U.S. stocks were headed for a sharp sell-off at Friday's open, following a weak report from the government showing a disappointing slowdown in job growth.
Dow Jones industrial average, S&P 500 and Nasdaq futures were more than 1% lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Over the last few months, signs of a stalling recovery have been building, with stocks delivering their worst monthly performance in May since August 2010.-Stocks: Bracing For Brutal Open

Thursday, June 2, 2011

It's "Coming Collapse" Mania!

Forget Gerald Celente, now the Drudge Report headlines that we're heading into a great depression, and everyone else seems to be jumping on the bandwagon, too.

Are we about to see a repeat of 2008 (or something even worse)? Suddenly all kinds of people are coming out of the woodwork and warning that we could be on the verge of the next major financial collapse. Of course many economists and financial pundits just enjoy hearing themselves talk, and sometimes they will make outrageous claims just to get attention, but when so many ominous warnings come out all at once it does tend to make one sit up and take notice. The truth is that global financial markets are even more vulnerable today than they were in 2008, and all over the globe we are seeing trouble signs.

Read more: Suddenly Everyone Is Warning About The Next Financial Collapse

Wednesday, June 1, 2011

More Money Printing

Investors should prepare themselves for a third round of quantitative easing, Simon Maughn, co-head of European equities at MF Global, told CNBC Wednesday.-Prepare for More Money Printing

Monday, May 30, 2011

The Sputtering U.S. Recovery

Analysts worry that interest rates will rise after the Federal Reserve's massive bond buying program, aimed at spurring growth, comes to an end in June. There are concerns about further cutbacks from budget-strapped state and local governments. And last week's disappointing economic reports — unemployment claims rose and first-quarter consumer spending was softer than previously thought — prompted more forecasters to take out their erasers and lower their economic and job projections.-Positive signs in an anemic U.S. recovery

$5 a Gallon Gas By July!

Goldman Sachs' crystal ball is proclaiming that oil will soon soar to $135 a barrel, and likely have service stations jacking up fuel prices to $5 a gallon in New York just like the summer of 2008 that preceded the recession.

Indeed, analysts say Goldman and the other oil trading giant that also has the might to move prices, JPMorgan Chase, have already placed their energy bets for the summer. JPMorgan predicts oil hitting $130 a barrel in the coming weeks.

Comin' this summer... $5 gas

Saturday, May 28, 2011

Housing Meltdown

Home prices still declining....

The housing meltdown hasn’t ended yet, and it could ultimately spark another financial crisis, says renowned bond fund manager Jeffrey Gundlach, CEO of DoubleLine Capital.

“The housing market is dropping . . . and about to go to a new low," he tells CNBC. "I think we're looking at some type of echo in the credit crisis coming up here. That's what I'm afraid of."

He notes that the S&P/Case-Shiller Home Price Index is approaching a new trough. The index measuring prices in 20 major cities dropped 3.3 percent in February from a year earlier, the biggest decline since November 2009.

Read more: Bond Expert Gundlach: Housing Collapse to Spark Second Financial Meltdown

Friday, May 27, 2011

Rising Food Prices - Nearly One Billion Go to Bed Hungry

Every day nearly 1 billion people go to bed hungry. Rising and volatile food prices are causing pain and suffering for poor people around the world, driving 44 million people into extreme poverty in recent months.

Warning: U.S. dollar could collapse

The United Nations warned on Wednesday of a possible crisis of confidence in, and even a “collapse” of, the U.S. dollar if its value against other currencies continued to decline.

In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.-U.S. dollar could 'collapse': UN

World Winter of Discontent

Spain, the UK and Italy are next in line to suffer the long-term consequences of the economic “Panic of ‘08” … that has been only temporarily assuaged by the trillions pumped in by the central banks to keep the financial system afloat.

Economic conditions will continue to deteriorate for most European nations. The worse they get, the louder and more heated the protests will become. Entrenched political parties, unwilling to make adequate concessions or yield power, will intensify their crackdown efforts.

The youth-inspired Spanish demonstrations, sit-ins and camp-outs will serve as a template for the equally disenfranchised youth of other countries. In the absence of an economic miracle, divine intervention … or a fulfilled Doomsday Prophesy (in which case all forecasts are off), expect protests to mount throughout the summer of 2011 and continue into 2012 and beyond.

Arab Spring + European Summer = World Winter of Discontent

Astronomically High Number of Home Sales Are Foreclosure Sales

Foreclosure sales, which include homes purchased after they received a notice of default or were repossessed by lenders, hit the highest share of overall sales in a year during the first quarter, foreclosure listing firm RealtyTrac Inc.-Foreclosure sales slow, but remain very high

Utah Legalizes Gold and Silver Currency

In order to provide its residents some much-needed security as the U.S. dollar continues to decline, the state of Utah has become the first to legalize gold and silver coins as currency. Sponsored by Republican state Rep. Brad Galvez, the same law exempts the sale of the coins from state capital gains taxes.

Utah Legalizes Gold and Silver Currency

Thursday, May 26, 2011

Spending cuts in exchange for Missouri tornado aid

Virginia U.S. Rep. Eric Cantor said Tuesday that any spending costs associated with federal disaster funding for Joplin, Missouri, tornado victims must be offset with spending cuts.

Read more:

Used Car Prices Rise

According to The Columbus Dispatch, “The lack of supply stems from the economic downturn. Automakers sold fewer new cars, which means that fewer recent models are out there to be traded in.”

The article fails to mention the Cash for Clunkers programs and its desired result of a reduced supply of used cars.

According to the chart (right) in the paper, used car prices rebounded before the program began. But some of the later rise has to be attributed to 650,000 less used cars on the market due to the 2009 program, regardless the paper’s silence on the matter.

-Used car prices up: who would have guessed?

Wednesday, May 25, 2011

Still Precious

We live in a literal financial house of cards. It is all paper. That house of cards has been in the process of collapsing since 2008. Astute market participants realize this and are buying bullion, one of the only financial assets with no counterparty risk, as a way to protect themselves from the coming storm.

Silver has more than doubled since Ben Bernanke began his high level terrorist attacks against the US dollar with “Quantitative Easing II,” announced in August of last year. Silver jumped from $18 to nearly $50.

Read more: Silver...Still Precious

The Social Security Ponzi Scheme

“The whole government is a Ponzi scheme.”-Bernie Madoff

If the Social Security is fundamentally flawed, the entire US Economy is fundamentally flawed. This financing mechanism the Fed provides creates NO REAL WEALTH, it merely creates cash out of thin air. Social Security then takes that cash and sets up a generational Ponzi Scheme to take from those that are working, to those that are not. Please don’t tell me that you paid in and that you are just taking out. The money that you put in years ago, got paid out almost immediately to those that were taking from the system back then. Those of you that are collecting money, are directly from workers who are working right now. What is worse, now we are paying people on money we have not even collected yet. With 80 million baby boomers coming to take from the Ponzi scheme this will end as badly as it did for Bernie Madoff’s victims.-Alan Greenspan Admits To Big Ponzi Scheme

Inflation Is Here: Coffee

“The J. M. Smucker Company…announced today that it increased the list price for the majority of its coffee products sold in the United States, primarily consisting of items sold under the Folgers®, Dunkin’ Donuts®, Millstone®, and Folgers® Gourmet Selections® brand names. Prices will increase an average of 11 percent on impacted items.”

J.M. Smucker increases prices an average 11% for its coffees

Tuesday, May 24, 2011

When Greece Defaults

It is when, not if. Financial markets merely aren’t sure whether it’ll be tomorrow, a month’s time, a year’s time, or two years’ time (it won’t be longer than that). Given that the ECB has played the “final card” it employed to force a bailout upon the Irish – threatening to bankrupt the country’s banking sector – presumably we will now see either another Greek bailout or default within days.
What happens when Greece defaults. Here are a few things:
- Every bank in Greece will instantly go insolvent.
- The Greek government will nationalise every bank in Greece.
- The Greek government will forbid withdrawals from Greek banks.
- To prevent Greek depositors from rioting on the streets, Argentina-2002-style (when the Argentinian president had to flee by helicopter from the roof of the presidential palace to evade a mob of such depositors), the Greek government will declare a curfew, perhaps even general martial law.

What happens when Greece defaults

What is Apple doing right in the PC market?

What is Apple doing right in the PC market? And what, exactly, did it do wrong in the first quarter of 2006?

Those are the two questions that occur in looking at some of the numbers pushed out by Charles Wolf, an analyst at Needham. He's posted an investment note on Apple which points out that Apple's Mac shipments have grown faster than the PC market for the past 20 quarters (that's five years in normal money).

He's also noted that in the first quarter of this year, when Mac shipments grew by 27.7% while the PC market shrank by 1.2% year-on-year (by IDC's numbers; Gartner's show a 0.94% fall) Mac shipment growth occurred in "every single regional market". In Europe, they grew 10% against a PC market down 17.5%; in Asia up 69.4% (v PC market up 8.8%); in Japan, up 21.1% (PCs down 16.1%). All figures are IDC data, and all year-on-year.

More: Apple computer sales grow faster than PC sales for five years - but why?

Sunday, May 22, 2011

Financial Consequences That Will “Dwarf Lehman Brothers”

Failure by the U.S. to get its fiscal house in order will trigger financial consequences that will “dwarf Lehman Brothers” and seriously diminish the nation’s role as a world economic leader, Jamie Dimon told a Denver audience Thursday night.

The CEO and chairman of JPMorgan Chase, whom The New York Times dubbed “the nation’s least hated Wall Street banker,” said political talk about not raising the U.S. debt ceiling could trigger a default on the nation’s financial obligations. He said that would constitute a “moral disaster” that will be nearly impossible for the U.S. to recover from.

JP Morgan’s Dimon Warns U.S. Government

The End of Keynesian Economics

I have been puzzled by the extent of the media coverage of some crank's prediction that the world would come to an end... People are always predicting the end of the world. So far they have always been wrong. Was there something about this particular prediction that was newsworthy? Did any significant number of people expect to wake up this morning and see graves opening and people ascending into Heaven? This morning, there were news stories to the effect that the world still exists. Really! Did reporters expect their readers to be surprised? Why, in short, was this silliness a major media event?

I wish reporters would pay as much attention to a more important failed prediction: the Obama administration's assurance that its policies, including the "stimulus," would foster job creation and prevent unemployment from reaching 8 percent.

Repent! The End of Keynesian Economics Is At Hand!

Hunger In Egypt

Egypt is running out of food, and, more gradually, running out of money with which to buy it. The most populous country in the Arab world shows all the symptoms of national bankruptcy - the kind that produced hyperinflation in several Latin American countries during the 1970s and 1980s - with a deadly difference: Egypt imports half its wheat, and the collapse of its external credit means starvation.

The hunger to come in Egypt

Thursday, May 19, 2011

LinkedIn Stock Surges After Going Public

The initial public offering was at roughly 45 dollars per share. That nearly doubled in mid-day trading. Is it valued dangerously high?


Multisource political news, world news, and entertainment news analysis by

But is LinkedIn worth -- 100 dollars a share? The Daily Beast’s Gary Rivlin says, hype can be a dangerous thing. He talks with investment analyst David Menlow about those jumping and buying in too high.

“‘I’d put those people on suicide watch.’ … He anticipates those buyers will wind up paying ‘tree-top tall prices—and then finding the limb they’re out on breaking."

LinkedIn's Big Ripoff

Thinking of buying shares of LinkedIn, the social networking company scheduled to make its stock market debut on Thursday? You might want to reconsider after listening to David Menlow and other investment pros who spend their days monitoring the market for initial public offerings.

Sure, buying shares in LinkedIn makes sense if you’re a favored client of Morgan Stanley, JPMorgan Chase, Bank of America, or any of the other big banks putting together the LinkedIn deal and have access to the inside price, says Menlow, president of, an independent research company. But for those purchasing shares once LinkedIn starts trading on the New York Stock Exchange and the price soars?-With Facebook and Twitter still privately held, investors are hot for the next best thing with the networking site's public offering. But once the banks and insiders get their fill, Gary Rivlin asks, will mom and pop investors get burned?

US Dollar Doomed As Commodities Skyrocket

Economic ministers are meeting in Argentina this week to discuss the volatile nature of the commodity market. As prices continue to skyrocket, the World Bank says the global economy will find a light at the end of the tunnel of today's financial crisis. At the same time, however, the World Bank says the US dollar's dominance will be done by 2025. Harper's Magazine Contributing Editor Frederic Kaufman says new players in the money game need to stop treating the commodity market like the stock market if they want the volatility to cease.

Wednesday, May 18, 2011

Walk Away?

A strategic default may not be explainable now, but how about in a few years. If enough people walk away and mortgage lenders start lending again, a strategic default may not be looked at in the same light it is today. The key point Ms. Gaskin makes is that “credit remains tight across the board.” That means lenders are looking for reasons to turn down borrowers. When that wind changes, so will the view of a strategic default on a person’s credit report.

Hoak then throws out the canard that landlords won’t want to rent to someone who has strategically defaulted, with Gaskin saying this, “Landlords that make inquiry into credit history may be disinclined to rent to a strategic defaulter or may offer less favorable terms than to a consumer with a strong credit history.”

So we’re supposed to believe that a landlord would turn down a renter because the landlord notices that previously the potential renter made the savvy financial decision to walk away from an underwater mortgage?

Gaskin goes on and on. Your insurance rates will go up and you’ll even have to pay more for your cell phone if you walk away. People don’t walk away unless the numbers are very compelling. So, even if you had to pay another $10 a month for phone and a little more for insurance the thousands saved each month not feeding an underwater mortgage is still worth it.

FICO Says Don’t Walk Away

Future of the IMF

Dominique Strauss-Kahn, the putative “public servant” overseeing the IMF, has been conducting himself in the classic tradition of lecherous, narcissistic, self-indulgent 18th century monarchs. And in the grand tradition of serfdom, we American taxpayers, along with working stiffs from 186 other “member countries,” transport the fruits of our labors inside the castle walls of the IMF. We are the ones who provide the capital that puts the “fund” in International Monetary Fund.

For what reason? So that the IMF can give some of our capital back to us if we get into financial difficulty. At least that’s the stated rationale for this large-scale larceny.

Officially, the IMF functions to:

* Promote international monetary cooperation.
* Facilitate the expansion and balanced growth of international trade.
* Promote exchange rate stability.
* Assist in maintaining a multilateral system of payments.
* Provide resources to members experiencing balance of payments difficulties.

Unofficially, the IMF operates to fund the debauchery of lechers, while also bailing out profligate nations who may or may not repay the bailouts. Under the IMF’s existing quota, the US is the largest member, representing 17.75% of the pie. In exchange for this membership, the US has provided the IMF with about $58 billion. Furthermore, this allocation will nearly double, thanks to the IMF’s “Fourteenth General Quota Review.”

Read more: Dominique Strauss-Kahn and the Future of the IMF

Will Our Psychopathic Elite Blame China for the Collapse of the Dollar?

The Elite will never take responsibility for their actions, like true Psychopaths. They will instead blame everyone else in the world for their/our problems. Ultimately, I believe that they will blame China for the collapse of the American Dollar. They could pull a economic false flag and blame China for a crash in the bond market. They could pull a military false flag by sinking an Aircraft carrier in the Pacific. Some way, some how, the Elite are going to make a move to turn the tides for global power back to the West.

China has been very wise not to directly confront the West. China has a very bad history of nations raping China for all of their wealth like the Opium Wars and the Rape of Nanking. China has instead chose to move slowly and surely to ensure victory without firing a single shot. This is the land of Sun Tzu after all. They have accumulated massive dollar reserves, copied our technology and manufacturing. With the opening of the new Hong Kong Mercantile Exchange they are taking the next major step of cutting into the heart of the Anglo American Empire, the dollar stranglehold on the world’s commodities. This will not sit well with the Western Elite and will not go unchallenged.-Read More: China The Video Game Enemy Now…

Rising Prices and Stagnant Incomes

The trouble with inflation today is that it is the worst kind of inflation. It makes prices go up…but not incomes, at least not in the US. Incomes are rising in Asia. So, people can buy more cars and more meat – and push up prices. Then, Americans pay higher prices…while their incomes don’t rise.

Why don’t their incomes rise too? Because the US is in a Great Correction. It spent too much and borrowed too much in the boom/bubble years. Now, it’s paying the price. That’s why so few houses are being built; we built today’s houses yesterday. And it’s why so little money is being borrowed and spent today; we already spent it.

The Land of Rising Prices and Stagnant Incomes

After QE2

We've been wondering who would step in to buy Timmy the Tax Cheat's $1.6 trillion annual debt issuance when the Fed stops printing money out of thin air to monetize it.

Who will buy America's debt when the Fed stops QE2?

Over the past several days, quite a few readers have been asking us why we are so confident that QE3 (in some format: it does not and likely will not be in the form of the Large Scale Asset Purchases that defined QE1 and 2 - the Fed could easily disclose that it will henceforth sell Treasury puts, a topic discussed previously, or engage any of the other proposals from Vince Reinhart disclosed in June of 2003, or worse yet, do what the BOJ does and buy ETFs, REITs and other outright equities) will eventually be implemented by the Fed. Luckily, instead of engaging in a lengthy explanation of the logical, Nomura's Richard Koo comes to our rescue with his latest research piece. While we disagree with Koo on various interpretations of his about monetary theory (namely that the Fed is not in effect "printing" money and thus creating inflation - this is semantics and leads to a paradoxical binary outcome, whereby if there Fed was successful in boosting the economy, the economy would indeed be flooded with the nearly $2 trillion in excess reserves held with reserve banks. And good luck trying to contain this surge by changing the IOER - if the Fed indeed pushed the IOER to the required 5%+ level it would immediately destroy money markets, leading to the same liquidity freeze that marked the post-Lehman days, confirming the "Catch 22" nature of Quantitative Easing that we have observed since its beginning) we do agree with his analysis of what would happen to the economy if either stocks or commodities are in a bubble (and judging by the violent opinions out there, most investors believe that either one or the other has indeed reached bubble territory), should QE2 end cold turkey: "Viewed objectively, the central banks are trying to push up asset prices using quantitative easing and the portfolio rebalancing effect. The resultant rise in asset prices based on this effect represented a potential bubble—or at least a liquidity-driven event—from the start. The question is whether the real economy can keep pace with asset prices formed in those liquidity-driven markets. If it cannot, higher asset prices will be considered a bubble and will collapse at some point. The resulting situation could be much more severe than if quantitative easing had never been implemented to begin with." Bingo.-Richard Koo Explains Why An Unwind Of QE2, With Nothing To Replace It, Could Lead To The Biggest Depression Yet

Gold $6500, Silver $600?

Get ready. We are now entering the final stages in the collapse of the U.S. dollar...

And it's not going to be pretty.

The massive increases in money supplies will tank the value of the dollar and erode the very fabric of America's economic security.

As a result, gold and silver prices are will no doubt skyrocket, despite the short-term major volatility we've recently seen.

Many investors have been rushing to me asking if it's too late to buy precious metals with gold in the $1,500/oz range and recently spiking to nearly $50/oz. I keep telling them the same thing...

Despite whatever the price of gold or silver is today, both metals will be worth more than twice as much within 12 months.

That means $3,000 gold this time next year! After that, I think gold could break $6,500 an ounce.

And as you know, silver's gains will be much greater. When the bull market is all said and done, there's no doubt we could be looking at silver prices exceeding $600 an ounce.

And we can all thank the crooks in D.C. for it...

Gold Aimed at $6,500/oz, Silver... $600/oz

Tuesday, May 17, 2011

Walmart's Shrinking Sales

You know the economy is in real trouble when even discount retail giant Walmart is struggling to maintain sales. I just recently got a Sam's Club memebership, but don't personally shop there much, however, Sam's Club sales, which make up 12% of Walmart's total, are helping the company as they the warehouse division improves its sales and goes more upscale to compete better with their rival warehouse store, while flagship Walmart is losing same store sales.

...U.S. Wal-Marts are expected to post another quarter of shrinking sales at stores open at least a year, the eighth such decline in a row.- Sam's Club Buoys Retail Giant

Wal-Mart Leans on Overseas Business

U.S. Housing Starts Unexpectedly Fall to 523,000 Pace

Housing Starts Unexpectedly Fall

Monday, May 16, 2011

Jim Rogers: 'US the largest debtor nation in history'

While US and China are holding talks in Washington DC the question arises - who has the upper hand in this negotiation? Co-founder of the Quantum Fund Jim Rogers says he would always like to be a creditor, not a debtor.

Thursday, May 12, 2011

Government Thieves Want Your Pension

In the US, public pensions have been raided for years, Congress routinely ‘borrows’ from Social Security to make up budget shortfalls. This is what talking heads mean when they play down concerns of a $14 trillion debt “because we owe it to ourselves–” $4.6 trillion of the debt is owed to intragovernmental agencies like Social Security.

Chances of this money being repaid to Social Security in full? Slim. The trend is more debt, not paying off existing debt. In fact, I’m convinced that politicians have their eyes firmly fixed on the trillions of dollars in private, individual retirement accounts (IRAs) in the United States to fund new spending.

Here’s how it will go down:

First, there will be some event… some sort of financial cataclysm, similar to the market meltdown we saw in 2008 after Lehman.

Read more: How the US government will seize your retirement account

Wednesday, May 11, 2011

Fewer fill-ups

Demand for gasoline in the U.S. fell by the largest amount in seven weeks, the Energy Information Administration said, a signal that consumers are conserving money as gas prices near a national average of $4 a gallon. Gas futures fell almost 8 percent. Crude oil fell back below $100 a barrel, a loss of more than 4 percent.

Fewer fill-ups may be an early sign of a broader drop in consumer and business spending as customers forgo trips to malls and restaurants and companies ship fewer products. That, in turn, could lead to lower corporate earnings and halt a stock rally that has sent the stock market up 7 percent this year.

Read more:

Flooding Driving Up Gas Prices

Flooding along the Mississippi River is driving up gas prices over fears that refineries could become inundated in coming weeks, especially as the deluge heads downriver for Louisiana.

"When we've had flood waters in this part of Louisiana before, it has closed up to 12 refineries," said Peter Beutel, analyst with energy risk management firm Cameron Hanover, referring to the impact of Hurricane Katrina in 2005. "The fear here is that we could see refineries close again."

The nationwide average price for unleaded gasoline climbed 1.1 cents to $3.962 per gallon on Wednesday, according to motorist group AAA, reversing the downward trend of the previous five days.

Floods drives up gas prices

Ahmadinejad on the U.S. Dollar

Iran's President Mahmoud Ahmadinejad strongly criticizes US economic policies, saying that the paper currency created by the American government is taking a heavy toll on the global economy.

The Iranian president also pointed that the US foreign debt now approaching over USD 14.6 trillion, while the Gross Domestic Product (GDP) in the United States stands at around USD 14 trillion.

President Ahmadinejad stated that such figures clearly explain the plunder of national wealth in many countries, and the upsurge in poverty and underdevelopment across the globe.-'Paper dollar destroying world economy'

Monday, May 9, 2011

"When people lose everything and have nothing left to lose - they lose it."

Gerald Celente is known to love to make the following statement: "When people lose everything and have nothing left to lose - they lose it." Sadly, Celente is exactly right about this. As the U.S. economy continues to collapse, Americans are going to becoming increasingly frustrated, and this frustration will inevitably boil over into rioting and violence. Could we be starting to see the start of this already? The number of Americans that have "gone wild" seems to be escalating. Years ago, losing a job was not that big of a deal. Now a job loss is enough to cause some Americans to snap and go over the edge. We are seeing restaurant brawls and open violence in the streets that would have been unthinkable 50 years ago. All over the nation people are losing it and are literally going crazy. The news stories and the videos posted below of "Americans gone wild" are very graphic and very shocking. - Americans Gone Wild

Sunday, May 8, 2011

The Government Orchestrated Silver Sell-Off

Real Estate Depression Coming Soon?

The foreclosure problem is getting worse. Seventy-five percent of the top 200 markets in the nation saw their foreclosure activity go up at the end of 2010 year-over-year. And, the foreclosure trouble is not just in the four most troubled states either namely – California, Nevada, Arizona, and Florida. It’s spreading across the nation.

Real Estate Depression Coming Soon

Gold and Silver to Explode Again After Consolidation

With fierce action in the gold and silver markets...King World News interviewed John Hathaway of the Tocqueville Gold Fund. When asked about the smash in the metals Hathaway stated, “I think people go crazy over these price changes and I understand that. I understand how it affects the psyche and all that, but the idea is you have physical (metal), it’s an asset. Whatever it’s valued at one day to another in paper money is irrelevant, you don’t price your house every day.”

Hathaway - Gold & Silver to Explode Again After Consolidation

Price, Truth and Myth

The first thing that most people associate with competition and marketing is price. That’s because they think that price is the most important factor for customers in a buying decision. Well the truth is just the opposite.

“PRICE is most important factor for customers in a buying decision” – Truth or Myth

Ban On Scientific Collaboration with China

A two-sentence clause included in the U.S. spending bill approved by Congress a few weeks ago threatens to reverse more than three decades of constructive U.S. engagement with the People’s Republic of China.

The clause prohibits the White House Office of Science and Technology Policy (OSTP) and the National Aeronautics and Space Administration (NASA) from coordinating any joint scientific activity with China.

Congress Bans Scientific Collaboration with China, Cites High Espionage Risks

US Economy In Peril!

The US economy is facing one of its most devastating downturns in its history. Even though some believe that the crisis may be over, but there are also those who believe the turn is downwards.

In this edition of News Analysis, financial journalist Max Keiser, prof. at California University Paul Sheldon Foote and political expert Eugene Sensenig-Dabbous debate on the US economy.

The Banking Vortex

The American banking system is based on pure faith. Usually when the topic comes up in conversation I will ask someone if they know what backs the green cash in their wallet. One of the common responses is “there is gold in Fort Knox” or another typical response is that it is backed by U.S. assets. Unfortunately both of these answers are incorrect. In fact all of our money deposited in the banking system is backed by the pure faith in our U.S. government. Now for decades this implicit belief was fine because we actually were a creditor and exporter nation. We also had a higher savings rate. Today we have a system where we continually spend more than we produce and expect this dynamic to somehow function long term as if we found an endless well of Kool-Aid. The Federal Deposit Insurance Corporation (FDIC) insures each individual account up to $250,000. Given that one in three Americans has zero dollars to their name and most others have a sum nowhere close to this amount, many go forward with an unstated faith in the system. However the FDIC Deposit Insurance Fund is largely running on fumes. This shouldn’t be such a big issue aside from the fact that the American banking system has over $7 trillion in deposits.

Banking in darkness – FDIC system insures over $7 trillion in deposits with a dwindling insurance fund. Americans are offered close to zero percent interest rates to stuff their money into this banking vortex.

Oil Prices Drop

Though notice the headline touts the "Second Biggest Drop in History" of oil prices, they are still much higher after the drop than they were a year ago ($75 a barrel in May of 2010, $97 a barrel now).


Multisource political news, world news, and entertainment news analysis by

Friday, May 6, 2011

At the Heart of the Matter is What Is Money? and How Does Money Maintain its Value? We've Run to the End of this Long Keynesian Experiment

Larry Lepard, is a 54 year old investment manager, Harvard Business School M.B.A., and Ron Paul supporter - Ron Paul supporter in that he's shelled out quite a few bucks to run ads and support RP campaigning.

Alex Jones Reminds Everyone: "You Are The Resistance!!"

Goldman Sachs and the Food Crisis

In a shocking report by Frederick Kaufman that has been featured on the Foreign Policy website, the role of Goldman Sachs and its Wall Street cohort in creating the food crisis has been revealed.

Frederick uncovers the 1991 scheme where Goldman bankers lead by Gary Cohn created a derivative that tracked 24 raw minerals; including coffee, cocoa, cattle, corn, hogs, soy and wheat and how that scheme was then manipulated to raise food commodity prices.-Did Goldman Sachs Help to Create the Current Food Crisis?

Final Fight of Physical and Paper Silver

The Elite have literally thrown everything they have at the silver markets to try to make silver investors weak in the knees and cry uncle. Like a bully trying to take your lunch money by twisting your arm. This can only end one of two ways; you give up and the banksters laugh or you stand up and say enough! These tactics may work on some paper traders who are literally forced by margin calls. For those who have listened to me, and bought only physical, this recent manipulation is only a subsidized discount to buy more, for less.


The Real Silver high is close to $450, not the nominal high of $50. I even made the historical case for $960 silver. Gold has almost doubled it’s 1980 nominal high and silver barely touched it, and now it is 30% below that in 4 days. Seriously, are people really worried about $36 silver?! I will be sleeping like a baby tonight. We are only back to when we roaring about the silver bull 5 weeks ago…

The very fact that the CME has not raise the requirements on commodities like oil, corn, or gold should show how important it is for the banksters to keep silver under control. After this knock down, we will reach a point where any weak hands will be gone for good. At that point the debt ceiling will be raised and the Fed will continue to print the money necessary to fund the nearly $4 trillion of debt that needs to be rolled over the next 2 years. Once this raid is done, the all clear will be signaled and the physical market will recover just as quickly as the paper market got smacked down.
-The Final Fight

Climate Change To Blame For Higher Food Prices?

Farms across the planet produced 3.8 percent less corn and 5.5 percent less wheat than they could have between 1980 and 2008 thanks to rising temperatures, a new analysis estimates. These wilting yields may have contributed to the current sky-high price of food, a team of U.S. researchers reports online May 5 in Science. Climate-induced losses could have driven up prices of corn by 6.4 percent and wheat by 18.9 percent since 1980. Read more: Climate Change Wilts Farming Yields

Corporate Tax Cut In Year Of Record Profits

As nationwide budget protests continue this week, Treasury Secretary Timothy Geithner is prepared to unveil the Obama administration’s plan to lower the top corporate tax rate from the current 35 percent to less than 30 percent, and as low as 26 percent.


In order to pay for the cuts, the proposal calls for closing loopholes and slashing exemptions. Politico reports that Geithner has already begun meeting privately with CEOs, academics, labor unions, and liberal and conservative think tanks, and his aides say he is “encouraged by the response.”

Part of that optimism stems from the fact that Democrats and Republicans are both allies of the business world.-Read more: Obama Administration Plans Corporate Tax Cut In Year Of Record Profits

Well, the two parties are two peas in a pod. Yes, cut taxes, but while we're at it, cut all crony capitalism and corporate welfare as well. Ah, but that won't ever happen, not with the corporation controlled US Congress!

Silver Forecast