KIT

Washington's Dilemma: This Isn't a Recession, It's a Collapse

At ten cents on the dollar maybe Canada can buy California making it our 11th Province. We can offer socialized Medical and California can give us much needed winter warmth.

The UN, China Want to Ditch the Dollar

China does not buy treasuries to make 3% or 8% return. They buy treasuries to recycle dollars back to Americans so they can buy Chinas cheap labor. Employment in China is far more important than losses to devaluation of any currency or investment. Money is the paper representation of labor. Unemployed labor is the mob with torches outside the government offices ready to burn it down

Washington's Dilemma: This Isn't a Recession, It's a Collapse

Their own currency..... THE LOOPY


On Jul 14 09:31 AM Charles Eisenstein wrote:

> California's IOUs are the first step toward its own currency, which
> would of course have profound anti-federal implications. All that
> is missing is for them to be made legal tender (to pay CA taxes)
> and for the state to let them be fully transferrable. Of course,
> the federal government is loathe to let such a thing happen, having
> realized at least since Roosevelt's ban of "emergency currencies"
> in the 1930s its decentralizing effect. But the federal government
> might have little choice this time. Well, I guess it would: further
> centralization, expanding its financial involvement in state and
> local government to the further detriment of local autonomy, and
> forcibly binding all together on a sinking ship.

Washington's Dilemma: This Isn't a Recession, It's a Collapse

Any difference between bankrupt GM and California? Default would clear the state of debt. They would have trouble getting new bonds to float but would they need it. No one is going to reposess the bridges and hyways they ( bond holders ) will just eat the loss. Without debt service normal tax collection may be enough to make it work. Leason learned dont invest in States whos spending is out of control.

Hmmmm..... or countries?

Dollar's Days of Dominance Are Over

>this left only the submissive Japanese as the last major holder of U.S. dollars who strongly supports its continued status.

The BRIC nations do not hold 5% of world bonds most based in USD. Japan and the Arabs and pension funds the world over are not going to walk from the USD world currency and damage their holdings even further

As to the 53 trillion owed to future social programs a promise to deliver in the future is not the same as a real debt. You are going to kiss 1/2 of your social secuity entitlements goodbye. Just like California you may want a nice retirement but you forgot to put away the money for it...... you refuse to be taaxed to cover it so start getting ready for the fact its not there

Long Dollar, Short Oil, Hold Gold?

Gold does not have fundamentals ( no future earnings no dividends no growth ) It only has disire to own or disire to sell


On Jul 05 08:03 AM DONE_SONZ wrote:

> I wouldn't have much faith in the dollar either way.Debt issues will
> just get worse if the market doesn't improve.Oil can go either way
> near term.Gold's fundamentals are still intact.

As the Dollar Continues to Collapse, Where Will You Put Your Money?

I'm with you far too many rich are not about to become poor.

There is a game of chicken going on right now. Buy US bonds at a loss or we (US) will buy them and destroy your investments in USD and increase inflation in all other countries with high commodities prices. This will cause the powers to be in other countries to lose elections. In the end the others will buy bonds or they will exchange their currency for USD to save their economies


On May 25 09:50 AM cameroni wrote:

> Nice article,
>
> But lets not hit the panic button on the US Dollar too hard just
> yet. The whole globe is invested in it in a very big way. Worries
> that creditors will start pulling out the rug from under us and forcing
> a major sell-off of all things American and debt related are truly
> overblown. A true dollar failure would have extreme and devastating
> global implications. I do not think for a moment that the biggest
> creditors are all about to shoot themselves in the feet on this one.
> They may be dismayed by what they are seeing with QE but at the end
> of the day most Governments want stability in financial markets and
> they will cooperate with the dollar devaluation because it is actually
> in everyones best interest (the lesser evil).
>
> Every Government will take a loss on this one but it is better than
> the alternative of a total dollar failure. I follow the dire warnings
> being issued by Peter Schiff and others and while the message is
> convincing it is still a prediction and for him and others, a simple
> marketing tool to build business through fear. I listen, I take it
> with a grain of salt, and then I do my own thinking.
>
> Let's not lose all faith and write the US off so quickly. Caution
> is the byword of the day but "it ain't over till the fat lady sings".
>
>
> Cam

Gold: Who's Left to Buy?

I Billion people at $400 dollars per year gross income ... dont get in front of this stamped!


On Sep 21 04:42 PM Ad Orientem wrote:

> Q. "Gold: Who's Left to Buy?"
>
> A. 1 billion+ Chinese who are being actively encouraged to invest
> in precious metals by their government.

Did We Nationalize Banks, Or Did They Nationalize Us?

The whole group should have been Nationalized. The taxpayer once asked to fix the mess would now be benefiting from the profit. Once the bailout was recovered and new rules put in place the taxpayer could sell the working company to the private sector. This would elliminate the moral hazard of no down side for doing wrong.

Time to Reenter GE

> the explosive growth of GE Capital --
> Bill Gross (of PIMCO fame) complained that GE relied too heavily
> on commercial paper for its financing -- the classic borrow short
> term, lend long term maturity mismatch mistake that brought down
> the savings and loans in the 1980s. I have no idea whether Gross
> intended to say this or not, but implicitly he was saying that GE
> was a bank.

The govt offered TARP funds or $2.00 share may have been a reality. GE looks like a dinosaur trapped with some out of date divisions and good ones that are only good with cheap capital availability. I will not after more than a year of deceptive corp anouncements ( no div. cut ect ) invest in GE.

Restucture, clean out the whole board ( they agreed with current problems for years ) Revalue stock to real INDUSTRIAL earnings.
Leave finance of products to outside banks ( in house has obvious problems )

A Bull Market That Few Are Buying

On May 11 09:13 AM Missing_Link wrote:

> On May 10 11:51 AM InvestBaboo wrote:
Good luck getting the suckers to buy further into the suckers' rally. I believe this cash is ultra-conservative; if it weren't, it wouldn't be sitting in money market accounts.

Bang on I'm 53 too close to retirement to shift a lifetime of savings into a recession market. I have made 4 years worth of interest on USD CAD exchange rate so I dont care that the Money market account pays no interest. NOBODY is getting my money till I see clear REAL earnings recover. 13 34 week crossover and retest IS REQUIRED. I get on chance to do this right for the rest of my life. At this point in my life I have no time to wait out a mistake

Pullback on Monday?

The big boys don't feel, wish or hope for direction they place billions in play after studing the charts. These charts say down, soon.

Inventory Drop Supports Oil Rally

Last summer as prices rose to $140 we had monthly reports of decline in oil stock just like this one. Total mileage driven has not returned to normal, speculation has. Paper hedging of oil contracts that are cancelled at the last moment and moved forward. Paper shortage of oil is the result.

100+ million barrels are in tankers Airlines, Truckers and family driving are all down, DRYS normal ships are parked.

So who used the oil this month?

Time the govt forced the delivery of oil futures instead of allowing the public to be robbed once more....twice more .... three...

Oil Futures: It's Not Manipulation, It's Stupidity

Best to let MS run oil to 200 crushing the fragile recovery to their own benefit. Its a blatant attack on America and maybe some of the Patriot Acts power can be put to good use

Dollar's Days of Dominance Are Over

>It has engaged in currency-swaps with at least 6 major trading partners - supplying them with renminbi so they will be paying for all their Chinese goods with China's currency, not USD's.

And not floating the renmimbi it will fall with the USD