We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson : U.S. Greater Depression Accelerates

While the myopic U.S. propaganda machine and the “experts” who shill for it will use the word “surprise” to describe yet another dismal U.S. jobs report, the only people who could have been surprised by today’s news are those who have had their eyes closed for the past several months (years?).

The U.S. government has just completed its most massive fiscal “stimulus” in history – by several multiples. It continues the loosest, most-reckless monetary policy in the history of the world. And yet the data is clear. This unprecedented effort to attempt to breathe life into the dying U.S. economy has produced nothing more than a feeble, temporary “dead-cat bounce”.

On the employment front, as usual the real data has been sugar-coated with more fraud by the Bureau of Labor Statistics. While the BLS is pretending there was a paltry 18,000 (net) jobs created in the U.S. in June, that number has no basis in reality. Merely subtract the phantom jobs from the absurd “birth/death model” and the U.S. economy lost more than 100,000 jobs last month – and that is before we factor in any more of the BLS’s statistical perversions.

Naturally these heavily-doctored monthly jobs reports don’t begin to tell the story on U.S. (un)employment. To do that we need to look at more meaningful statistics, laid-out in long-term charts.

Read more: U.S. Greater Depression Accelerates

On the Road to Government Default
By: Gary North, Mises on Money
A great default is behind us. The public is unaware of this. If you read this report, you will no longer be unaware of it.
The ease with which this default took place should serve as a warning: there will be additional, much larger defaults. Again, the public does not understand this. The main one will be Social Security. The program is now in the red: more money going out than comiomng in. But most people still cannot believe that the program really will go belly-up. That's why I produced a video on this.

International Forecaster July 2011 (#3) - Gold, Silver, Economy + More
By: Bob Chapman, The International Forecaster

You have Never seen an Elephant Fly
By: Professor Antal E. Fekete

Presenting The Plunge In Foreign Interest For US Treasurys

Submitted by Tyler Durden on 07/09/2011 18:49 -0400

There has been much speculation recently about whether or not China is or isn't dumping its holdings of US Treasurys. Spoiler alert: it isn't. At least not outright. After all, it still is not a self-sustaining economy and as such relies on what's left of the US middle class to purchase its production. In fact, according to the latest TIC data, after 5 months of declines, Chinese UST holdings increased in April 2011. The problem with TIC is that it is woefully late. It is also terribly unpredictable and subject to annual adjustments which see hundreds of billions adds or subtracted from estimated holdings. Furthermore much has happened in the period between April and the first week of July. Namely the end of QE2. Furthermore many will note that there has been little if any change in market sentiment to Treasury paper now that QE2 is over (which is actually very much untrue after last week we saw the biggest percentage blow out in the 5 Year in history). But for the best indication of what non-US based buyers of Uncle Sam's paper think about the desirability of said paper, we went to the source, and compiled all Auction issuance data since the June 2009 bidder reclassification rules. The result is quite striking. Over the past 2 years, foreign demand, expressed by the final take down as a percentage of total auction size across the entire curve (2,3,5,7,10, and 30 Year) has plummeted from 55% to just below 35% as of the last auction.

In Response To "Shock" NFP Numbers, Democrats Demand Another Payroll Tax Extension As Republicans Say $4 Trillion Deficit Reduction Plan "No Go"

Submitted by Tyler Durden on 07/09/2011 20:18 -0400
Proving once again that i) there is no idea on the Hill that is so stupid that it can't be recycled again... and again, and that ii) the last thing politicos care about is deficit reduction (yes $4 trillion cut over the next century works... too bad by then the deficit will be measured in quintillions) is the news from Bloomberg that following the "stunning" news from the BLS that "nobody", and certainly not Joe LaVorgna could predict (odd, we do recall saying on Thursday night that anything out of the ADP is and always has been complete garbage, and that the only definite pink slips should be those handed out to its employees) democrats are now demanding more of the same (failed medicine) that did nothing at all to boost Q1 GDP, namely an extension to the payroll-tax cut, which humiliated none other than Goldman's Jan Hatzius into believing it would do something to boost the economy (first see: Goldman Jumps Shark from December 1, 2010 then Goldman Apologizes For Its Horrendous December "US Economic Renaissance" Call, Begins QE3 Discussion). Hint: it won't. It will merely cost another $100 billion in incremental debt that will never be repaid, and a few dollars boost to Apple's EPS, but aside from the few non-edible iPads being bought, that will be about it. Yet that won't stop the screeching parrots from repeating the only word they know: more, more, more: "Senator Charles Schumer of New York, the chamber’s third- ranking Democrat, called for an “immediate jolt” to the economy by extending and enlarging a one-year payroll-tax cut that’s set to expire Dec. 31. He asked for action “as quickly as possible by including it in the final debt-limit agreement.” Jared Bernstein, until recently Vice President Joe Biden’s chief economic adviser, predicted the White House would step up efforts to include in the debt deal additional infrastructure spending or a new temporary payroll tax reduction." Yeah, good luck with that.

Things That Make You Go Hmmm - The Past, Present And Future Of The Dollar

Submitted by Tyler Durden on 07/09/2011 16:36 -0400

With each passing day bringing us closer to the end of the world's reserve currency, and everyone coming up with their soapbox theories about what happens tomorrow and the day after, perhaps the best way to analyze the future is by looking at the past, which is what Grant Williams has done in his latest TTMYGH letter. It begins: "What exactly IS ‘The Dollar’? There are currently 47 countries or territories that use the ‘dollar’ as their currency, from the obvious names such as the United States, Australia and Canada to the more esoteric such as Suriname, Tuvalu and Guyana, but where did the word ‘dollar’ come from?" Williams proceeds to analyze the full history of the greenback, and its primary function, to provide an alternative to gold, as the defacto world currency. The truth is that every time the dollar appeared like it was on the verge of irrelevance, a gold standard of some form was reestablished, however briefly. We are now at one such crossroads. Yet only fools know for a fact what will happen hours from now, let alone years. Which is why as Williams concludes, " Whatever happens from here, there are a few of things of which we can be quite certain" :

To paraphrase Winston Churchill’s quote about America: Governments will always do the right thing - after they’ve run out of every possible way to avoid doing so
The can will be kicked down the road until we run out of road - and into a brick wall
The ultimate judge of the success (or otherwise) of every political decision made since Lehman Brothers went to the wall is shiny, yellow and costs about $1,500/oz

"So what exactly IS the dollar?" Read on form some answers.

Chinese Inflation Explodes: Hits 3 Year High 6.4% In June

Submitted by Tyler Durden on 07/09/2011 12:24 -0400

It had been widely expected that Chinese CPI would come in smoldering in June, with some predicting a print of 6% or just over. Few, however, expected 6.4%, a blistering spike compared to May's 5.5%, which is the highest inflation recorded in China in 3 years, and depending on how one looks at GDP (and the government's way is certainly modestly flawed to say the least), China may well be approaching the revolutionary point where real interest rates turn negative, and purchasing gold becomes a costless opportunity, which in turn would send the price of gold well north of $2,000. China Daily, the government's official mouthpiece comes with the usual Douglas Adams advice: "We don't have to panic about the June CPI figure," said Zhang Liqun, a macroeconomic analyst with the State Council Development Research Center, China's top government think-tank....Of the 6.4-percent CPI growth in June, 3.7 percentage points were contributed by the carryover effect of price increases last year, the NBS said in a statement on its website. "A CPI growth above 6 percent doesn't mean the inflation situation is worsening in China, because 3.7 percentage points of the increase were contributed by the carryover effect," Zhang said." See: inflation is transitory. First in the US now everywhere. Elsewhere, expect more RRR hikes to follow in the coming weeks in the aftermath of the just announced general interest rate hike as the PBoC, contrary to its own advice, starts panicking.

Iran Test Fires Two Long-Range Missiles Into Mouth Of Indian Ocean Where Two US Aircraft Carriers Are Situated

Today for the first time, Iran's IRNA news agency reported that the country had fired two missiles with a range of 1,900 km, coupled with TV coverage, into the mouth of the Indian Ocean. As PressTV reports, "Commander of the Aerospace Division of Iran's Islamic Revolution Guards Corps (IRGC) Brigadier General Ali Hajizadeh said that the long-range missiles were fired in the Iranian calendar month of Bahman (January 21 to February 20). He said that the missiles, fired from central Iran towards the Indian Ocean, successfully hit its designated targets, IRNA reported Saturday. Hajizadeh said that Iran's missiles have a range of up to 2,000 kilometers, adding that “Iran has the ability to produce longer-ranged ones (missiles) but presently there is no need to produce them." The purpose of the test firing was all too clear: "Our desired targets and the country's threatening us are located well within the reach [of our missiles]," he said. In other words: any US-based invasion of Iran will most certainly see prompt retaliation against US national-interests in the region. This is especially concerning since the US currently has two aircraft carriers, amusingly the Bush and the Reagan, both sitting side by side at the straits of Hormuz, with LHD 4 boxer backing up the rear in a zone that is now quite explosive. Had these test firings been perceived by a provocation, and lately it appears that the US is actively seeking one, it may have been quite a mess.