All Paper Money Will Go To Its Intrisic Value, Zero.
posted by Blogger at Marc Faber Blog - 6 hours ago
There’s no other way out but to print money. In the long run, all paper money will go exactly to its intrinsic value, which is zero. in a Seoul Forum, June 9 Related assets: Market Vectors Gold Miners ETF...


Watch this video,. Tomorrow the movie will be on cnbc Direct tv channel 355 at 3:00 pm
record it.






Fortunately, at least some members of Congress are waking up to the financial peril dead ahead. . . Recently, Republican Sen. Judd Gregg of New Hampshire stated his fears that the United States is on a course for economic disaster. The overwhelming debt and exploding deficits will lead to “the financial meltdown of our nation,” Gregg said.


Jim Rogers Blog - 6 hours ago
Gold has been, historically, a good way to preserve wealth, but so have other things as well. I own gold. Gold is making all-time highs. It certainly has been a way to preserve wealth in the last decade. W...


Think US Debt Is High Now? Wait Until 2015


In The News Today Posted: Jun 09 2010 By: Jim Sinclair Post Edited: June 9, 2010 at 9:01 pm
Filed under: In The News

Dear CIGAs,

The ratio spread is limited in time. The ratio spread of short gold shares and long gold futures will end when the spread and results thereof go negative.

Do you have any idea what $1200 means to gold producers at all levels? As the impact of gold at these levels filters through the production process, future earnings are truly golden.
$1200 means 1,000,000 mineable ounces is worth $1.2 billion less the cost of mining.
Even today the hedge fund sellers of future gold are finding it hard to cover the gold share shorts placed when paper gold was purchased.
What a way to chase your tail. Can you imagine if Egon is right and gold goes to $6000-7000?
Every 100,000 mineable ounces would have a value of $600,000,000 less the cost of production. To the earnings statement 1,000,000 ounces would be worth $6-7 billion.


This means major cuts to all social programs and unthinkable taxes......
There will be riots in the streets and crime will rise as people are forced to fight for survival...
If you are not prepared for what is coming, you will be part of it...
US Needs Austerity Too: Hedge Fund Strategist


Jim Sinclair’s Commentary

When a bankrupt begins to cannibalize, the end is near.

Arizona Sells Supreme Court Building in $300 Million Bond Deal By Allison Bennett and Brendan A. McGrail

June 8 (Bloomberg) —

Arizona, which sold state prisons and offices to raise cash six months ago, plans to borrow $300 million by marketing its Supreme Court building and about a dozen more properties through leaseback bonds starting today.

Investors will hold ownership of the court building in Phoenix, the fifth-largest U.S. city, and the Arizona Schools for the Deaf and the Blind in Tucson for as much as 20 years, with the securities maturing serially from 2012 through 2029, according to offering documents. Lease payments will back the debt, known as certificates of participation.

Arizona, whose foreclosure rate last year was ranked second-highest after Nevada by RealtyTrac Inc., will use the sale to pay for three months of school aid. The state raised $709 million for education payments when it sold and then leased back nine properties to investors in January.

“From an investor point of view, this is great,” state Treasurer Dean Martin, 35, said in an interview. “The state has to have buildings to operate and we’re the largest employer in Arizona.”

Arizona’s last such sale was Jan. 14. Five-year securities were priced to yield 3.07 percent, 32 basis points above a Bloomberg Fair Market Value index of comparable certificates at the time. The debt traded June 4 at an average yield of 2.79 percent, according to Municipal Securities Rulemaking Board data, 3 basis points above the index.

More…

Banking System Collapse:
Wake Up America Your Banks Are Dying

U.S. banks are being shut down by federal regulators at a staggering pace this year, and yet most Americans seem completely oblivious to it. In fact, federal officials have already shut down 81 U.S. banks this year, which is about double the number that were shut down at this time last year. So why aren't more people upset about this? Well, part of the reason is because the FDIC is doing it very, very quietly. The bank closings for each week are announced every Friday, which means that they pass through the news cycle over the weekend almost unnoticed. For example, banks in Nebraska, Mississippi and Illinois with total deposits of almost $2.3 billion were shut down by federal regulators on Friday. So did you hear about it before now? If not, why not? Shouldn't the fact that we are experiencing a banking system collapse be headline news? But most Americans are more than happy to remain blissfully ignorant of what is going on. In fact, most Americans seem far more interested in what is happening on American Idol or Dancing With The Stars. But when the American Dream starts dying for tens of millions of Americans as the economy collapses perhaps more people will start to care.

So just how bad is the banking system crisis?

Well, FDIC Chairman Sheila Bair says that 775 banks (approximately ten percent of all banks in the United States) are now on the Federal Deposit Insurance Corporation's list of "problem" banks.

So should we be alarmed by that?

Well, there were only 252 U.S. banks on the FDIC's problem list at the end of 2008.

There were 702 U.S. banks on the FDIC's problem list at the end of 2009.

Now there are 775.
Do you know if your bank is on the verge of failing?

You might want to check.

But even if all of our banks fail the FDIC has plenty of money to cover our federally-insured banking accounts, don't they?

Unfortunately, they do not.

The FDIC is backing nearly 8,000 U.S. banks that have a total of $13 trillion in assets with a deposit insurance fund that is pretty close to flat broke.

It was recently reported that the FDIC's deposit insurance fund now has negative 20.7 billion dollars in it, which actually represents a slight improvement from the end of 2009.

But the bank failures on Friday drained another $313.6 million from the FDIC’s deposit-insurance fund.

And the way things are trending, the banking crisis could get a whole lot worse?

Why?

Well, Americans are simply not doing a very good job of paying their bills.

During the first quarter of 2010, the total number of loans at U.S. banks that were at least three months past due increased for the 16th consecutive quarter.

16 quarters in a row.
Just let that sink in.

If that is not a trend, then what is?

Oh, but the U.S. government will never let the entire banking system fail, right?

Well, they won't let the "too big to fail" banks go under, we have seen that.

But the small and mid size banks?

They fall into the "not big enough to bail out" category.

And where in the world is the U.S. government going to get more money to bail anyone out?

The reality is that the U.S. government is now over 13 trillion dollars in debt.

To give you an idea of just how horrific that is, if you started spending a million dollars a day on the day that Christ was born, you still would not have spent a trillion dollars by now.

That is how big a trillion is.
But for this year alone it is being projected that the U.S. government will have a budget deficit of approximately 1.6 trillion dollars.


So, yes, pretty much wherever you turn we are facing a financial nightmare.
Senator: US Liquidity Crisis Coming in 2 Years—Unless…

All the perplexities, confusion and distress in America arise not from the defects in their constitution or confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation. - John Quincy Adams