George Bernard Shaw said: “A government that robs Peter to pay Paul can always count on Paul’s support.” According the American Enterprise Institute, federal spending accounts for 25% of GDP. State and local bring the government slice to nearly 50%. Ninety-seven percent (97%) of personal income taxes are paid by 50% of the population, and 70% is paid by only the top 10%. Based on these numbers, the constituency for more government spending and further income redistribution would seem to be well entrenched.

John Embry: Gold nears parabolic move up

In The News Today

Posted: Jul 30 2010 By: Jim Sinclair Post Edited: July 30, 2010 at 11:44 am

Filed under: In The News

U.S. Economy Grew 2.4% in Second Quarter, Below Forecast
By Timothy R. Homan – Jul 30, 2010 6:41 AM MST

Growth in the U.S. slowed to a 2.4 percent annual rate in the second quarter, less than forecast, reflecting a larger trade deficit and an easing in consumer spending.

The increase in gross domestic product compared with a median forecast of 2.6 percent of economists surveyed by Bloomberg News and follows an upwardly revised 3.7 percent pace in the first quarter that showed a jump in inventories, according to figures from the Commerce Department today in Washington. Business investment climbed at the fastest rate since 1997.

“The economy is muddling through,” Ethan Harris, head of North America economics at Bank of America-Merrill Lynch Global Research in New York, said in an interview after the report. “We’re probably not going to see a really strong number for a while. We need to see some pickup in job growth.”

A slower pace of growth means employers may be reluctant to hire workers and more likely to keep a lid on prices in order to boost sales. Federal Reserve Chairman Ben S. Bernanke last week said the central bank is prepared to take further policy actions if the world’s largest economy “doesn’t continue to improve.”

The Standard & Poor’s 500 Index dropped 1.1 percent to 1,089.97 at the 9:36 a.m. in New York. The yield on the 10-year Treasury note fell 6 basis points, or 0.06, to 2.92 percent.

Median Forecast

The projected gain in GDP was based on the median estimate of 81 economists surveyed. Forecasts ranged from gains of 1 percent to 4 percent.

The worst U.S. recession since the 1930s was even deeper than previously estimated, reflecting bigger slumps in consumer spending and housing, according to the Commerce Department’s annual revisions also issued today.

More…

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Fed's Bullard: US at Danger of Japan-Style Financial Crisis.


Dr. Housing Bubble: Banks cherry picking individual foreclosures that show up on the MLS.


SEC Provision Shocks Observers


"A modern day depression" Rosenberg sees "tough slogging" for the economy.


Rep. Bachmann: U.S. Faces 'Disaster' From Financial Reform Bill


AP survey: A bleaker outlook for economy into 2011


Tight budgets and fewer cops; time for citizens to 'arm up'


Gel that can help decayed teeth grow back could end fillings and pain

Today St. Louis Federal Reserve Bank President James Bullard warned that the U.S. is closer to succumbing to a Japanese-style deflation than any recent time, which he urged be countered with "quantitative easing."

Is he on drugs?

Quantitative easing is nothing more than Federal Reserve Ph.D. doublespeak for "printing money out of thin air."

You can put lipstick on a pig in an attempt to dress up the pig and make it beautiful, but in the end it's still an unattractive pig.

Likewise, you can dress up "printing money from thin air" with fancy Ph.D. language, but in the end it's still destructive currency debasement.

The Fed cannot print our way to prosperity. Period.

It's never been done in the history of the world.

Attempting to do so is like trying to drink yourself sober with a gallon of whiskey.

I have a stack of 100 $100 trillion dollar bills issued from the central bank of Zimbabwe on my desk to remind of the end result of "quantitative easing."

The Fed seems dead set to destroy the value of the U.S. Dollar. Printing money and handing it to their friends will only enrich their friends, while at the same time bringing about poverty for the average citizen.

The Fed is powerless to stop the economy from collapsing, and their announced plan to fight the natural course of the economy is only going to have very bad consequences.

We are still experiencing the effects
of the "great recession" and the economy is again sinking rapidly.

The alleged "recovery" was nothing more than a temporary mirage created with "stimulus" money and lots of media hype.

If you listen to the "happy talk" about "recovery," (remember, even the President himself is on tour hyping the recovery mirage in his not-so-cleverly-named "recovery summer") you'll be completely unprepared for the economic suffering that is heading straight for us.

while the majority will see their wealth devastated by the economic calamity, you need not be part of that group.

“A prudent man foresees the difficulties ahead and prepares for them;
the simpleton goes blindly on and suffers the consequences.” – Proverbs 22:3

To this I will add that you need to IMMEDIATELY get your money out of the bank system and sell your extra dollars for real money(Gold and Silver) as fast as you can...This will preserve your wealth.

If you haven't yet filled your pantry and freezer to full capacity... you are making a huge mistake and one you could pay dearly for as prices rise...Buy what you eat and eat what you buy, rotate rotate rotate...first in first out, try to get at least a 3-6 months supply... Make sure you have at least a months supply of water for each person.

By doing these simple things, you can protect yourself from the coming uncontrollable inflation headed your way... If and I don't think it's possible, that we avoid hyper-inflation you will have groceries that saved you money, and you will have an investment that will outpace inflation...

Better safe then sorry...

Jim’s Mailbox

Posted: Jul 30 2010 By: Jim Sinclair Post Edited: July 30, 2010 at 3:29 pm

Filed under: Jim's Mailbox

Time to Accumulate metals and mining stocks-UBS
CIGA Eric

Word continues to leak out, buried within the deep recesses of the Internet, despite the selling-induced fear created by the paper operation. As we have been saying for awhile, it will be today’s enemy of gold – bullion banks and agents rather than the gold community that will profit most from gold’s secular rise.

Positive View on Gold

"We believe that ongoing pressure on sovereign debt markets, combined with persistent concerns over private sector credit contraction will raise the spectre of debt monetization repeatedly over the next few years," the analysts advised. "We expect that this background will remain very supportive for gold prices over the period, and that informs our above consensus gold price outlook and our inclusion of two gold stocks in our top ten picks…"

Source: mineweb.co.za

More…

"Whoever looks upon them merely as an irregular mob will find himself much mistaken. They have men among them who know very well what they are about, having been employed as rangers against the Indians and Acadians; and this country being much covered with wood and hilly is very advantageous for their method of fighting." - Hugh Percy, 2nd Duke of Northumberland, from a letter written April 20, 1775