Hyperinflation Watch
http://www.fgmr.com/us-treasury-takes-another-step-on-the-road-to-hyperinflation.html


DOOMED SOVEREIGN ALCHEMY
A leading bank analyst believes that ultimately, sovereign alchemy will fail. Egon von Greyerz is manager of the Matterhorn Asset Mgmt fund. He said, "When we look at the world economy today, wherever we turn, we see a wall of risk. And sadly this is an insurmountable wall of risk with risks that are totally unprecedented in history. There has never before been a potentially catastrophic combination of so many virtually bankrupt major sovereign states (US, UK, Spain, Italy Greece, Japan, and many more) and a financial system which is bankrupt but is temporarily kept alive with phony valuations and unlimited money printing. But governments will soon realise that they are not alchemists who can turn printed paper into gold. The consequences of the global financial crisis are potentially catastrophic." He describes an era coming to a close. The era was identified by a grand illusion, that governments through their central bankers could create prosperity from virtually unlimited money creation, vast expansion of debt, and migration away from industry. It will end in disaster. The folly was an insult to Economic Mother Nature. See "Sovereign Alchemy Will Fail" on the Matterhorn website (CLICK HERE).

Over-Arching Sovereign Debt Crises


The various state budget crises are increasing in severity. Here is the news from California, and Illinois.


Greece leads Europe's winter of discontent


What, Me Worry? Credit Default Swaps on US Treasuries. Oh, don't miss his advice at the end of the article: "Although sovereign defaults are hardly unknown, things would have to get incredibly bad for the US to default on Treasuries. And if they got that bad, you'd probably have been better off investing in a survivalist camp than CDSs."


Quantitative Easing May Have to Restart. (They're talking about monetization, folks. Be ready for some serious inflation, in coming years.)


A Desperate FDIC Begs Americans to Open Savings Accounts During "America Saves" Week


Chart of the Day: Banks Continue to Pull the Rug Out From Under the Economy


The Expanding Economics of Austerity


A trend to watch? Spokane Tax Assessor Wants Low Altitude High Resolution Photos of Private Property.