We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Friday, July 29, 2011

The Budget Debate Fraud

Posted by: Econophile

Post date: 07/29/2011 - 14:42

Everything about the budget debate is a fraud. The drop dead date is a fraud. The "cuts" are a fraud. The threat of economic collapse is a fraud. Forget all the "can't we just get along" rhetoric. US...

Boehner Deficit Plan Passes: Here Is What Happens Next

As expected, the revised revised Boehner plan has passed the Congress garnering the required 216 votes to be successful (218-210 to be precise). And now that the ball is in the Senate's court, here is was happens over the next 3 days...

Moody's Releases Statement On Potential Outomes In US AAA Review

As to the longer-term outlook on the rating, the limited magnitude of current deficit reduction proposals suggest that even a timely increase in the debt ceiling will lead to the assignment of a negative outlook on the rating. The direction of the US government's debt rating will largely be determined over time by our projections of its deficits and stock of debt, but the focus of our current review for downgrade is the more narrow and more immediate "event risk" associated with a possible debt-ceiling-induced default and the precedent that such a default would carry. We will make an assessment of the government's efforts to stabilize the future path of its debt ratios when the review is concluded.

The Question On Everyone’s Mind

July 29, 2011, at 6:21 pm
by Jim Sinclair

My Dear Friends,

The question in all our minds is what will the final debt compromise effect be on the price of gold?
We have written here recently and published the articles of others that state a downgrade of US Treasuries has more serious long-term implications economically than a short term technical default.
I cannot recommend the hedges you hold by owning gold and gold related items be dropped even if gold was trading at $1650.
There is nothing going to happen that is going to offset the borrowing demands of the US Treasury in a significant way. Rating agencies who have not hesitated to downgrade everything Euro cannot hide from the sloppy process going on now in the Senate and House.
If US rating agencies fail to downgrade US Debt they show themselves to be Europhobic and without any credibility.
Stand strong and hold your gold hedges. What is likely to happen is a US debt downgrade after a compromise on the debt ceiling agreement which will be much to do about nothing.
Regards,
Jim

In The News Today

July 29, 2011, at 1:38 pm
by Jim Sinclair in the category In The News |

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Jim Sinclair’s Commentary

John Williams confirms the severity of the double dip.

- GDP Growth Slows Markedly

- Official Downturn Much Deeper In Revision

- Latest GDP No Longer Has Recovered Pre-Recession High

- 2009 Annual GDP Drop Now Worst Since 1932 — Outside of World War II Production Shutdown

www.ShadowStats.com

Jim Sinclair’s Commentary

Already the airwaves are hard at work saying a downgrade of US debt is no big deal.
Believe me, it is a big thing as it starts a walk down a very slippery slope.

Does the US Deserve a Credit Downgrade?
Published: Thursday, 28 Jul 2011 | 4:42 PM ET
Whether Democrat or Republican, most Americans are disappointed in Congress and the White House when it comes to the way the debt ceiling crisis has been handled.
Today, we want to know if you think the United States deserves a credit downgrade?
Share your opinion:
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Jim’s Mailbox

July 29, 2011, at 1:37 pm
by Jim Sinclair

Hi Jim,
Women and children are last this time
CIGA Jack

Fed readies debt-limit guidance for financial firms 6:53pm EDT
By Mark Felsenthal
WASHINGTON, July 28 (Reuters) – The Federal Reserve plans to provide guidance to banks soon on how to handle the potentially turbulent financial waters if the United States exhausts its borrowing authority.
"We have been engaged in operational planning with the Treasury," Fed spokeswoman Barbara Hagenbaugh said on Thursday. "We expect to be able to give additional guidance to financial institutions when there is greater clarity from the Congress and when Treasury outlines its specific operational plans."
The Treasury has said it will not be able to borrow more funds after Tuesday if Congress does not raise the nation’s $14.3 trillion debt ceiling by then, raising the prospect of a government default. Lawmakers on Thursday were still deadlocked over how to move forward. For more see [ID:nN1E76R004].
Officials say a debt default would damage the U.S. economy for years to come and likely provoke a severe financial crisis, but they have been hesitant to discuss contingency planning.
"No one in Washington wants to do anything to relieve the pressure on lawmakers to get this done by the deadline," said Chris Low, chief economist for FTN Financial in New York.
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How China Ate America's Lunch

Posted by: Luc Vallee

Post date: 07/29/2011 - 20:26

In 1978, the year China emerged onto the world stage with its four modernizations, China, a country with four times the population of the United States, had a paltry gross domestic product of $216...

The $1 Billion Armageddon Trade Placed Against The United States.