Chinese Think Tank: US May Be On Way To Default, Accuses America Of Falsifying Accounting

Joe Biden came to China, saw, and failed to conquer the locals' ridicule. Punctuating just how "effective" Biden's visit to China was in order to "reassure that the US is solvent" (no seriously, that;s the name of the article) is a just released article in the Securities Times by Wang Tialong, member of Chinese think tank Center for International Economic Exchanges in which he went on to blatantly say that "The U.S. may be on its way to default on its debt despite the U.S. government's ability to print more money, a Chinese think tank researcher said Monday." Now this is nothing new in the escalating war of words between the two countries, although increasingly China appears to be attacking the primary loophole that defenders of the unsustainable US debt use, namely the fall back to the USD as a reserve currency. Wang went on further to implicitly accuse the US of fabricating economic data: "There is also no way to punish the issuer country if it falsifies its accounting and there is no way to restructure the issuer either, Wang said." Well, when China accuses the US of "falsifying accounting" you know you have hit rock bottom.

Guest Post: Print It And They Will Come

Why is printing money the best solution? Why isn't trying to pick up the pieces after some defaults, a better solution than printing. With stock futures down again already, and Jackson Hole coming up, you know we will hear Wall Street (and anyone caught long) clamoring for the Fed and ECB to PRINT more money. It seems to be the only "solution" to the debt burden too many countries are facing. I agree that it is the only way to avoid some defaults and some pain....So, we will get money printing. That to me, is dangerous, since we don't know what printing so much more money will do. It doesn't in any way, shape, or form address the root cause of the problem. It is hard to hedge (buy more gold?) and it potentially unleashes problems we haven't even contemplated. Hyper-inflation causes riots in countries where China bought land to produce food and gives them an excuse to enforce their rights by sending in troops? Maybe that is crazy, but in my defense, I am wearing my IG200 hat, not a tin foil hat. I am not sure what can or can't happen in a world where we decide that printing money is the best way out of our problems. So many bizarre things have come out of our alternative solutions, and few of them good, that we should spend more time thinking about accepting the default of the weak, and seeing what we can do with that.

 

It's Not A Free Market, It's Not A Controlled Market, It's A Gong Show Market

A free market is one in which government intervention and regulation is limited to tax collection, and the enforcement of private ownership and contracts. A controlled market is one in which governments directly regulate how goods, services and labour are priced and sold – the dynamics of economic supply and demand are ignored. Then there is the gong show market. Until recently, this type of market has only been available to 1970s TV game shows. Yet today, this exceptional form of dark comedy has been adopted by our global leaders as an acceptable approach to dealing with the World’s debt crisis. Unfortunately for every human being that fully grasps the enormity of the financial problems facing the World today, the reason for their dissatisfaction with the response from our global leaders is simply due to them not knowing the rules of the Gong Show. For your convenience, we provide them as follows...

 

 

Guest Post: Weekly Kumo Break Suggests Long Term Structure Changing

For those of you who are familiar with the Ichimoku Kinko Hyo (One Glance Balanced Cloud Chart), one of its strengths is in communicating when major long term trends are beginning and ending.  This can either be done through the TKx signal (Tenkan-Kijun Cross) or a Kumo Break (cloud break).  Based on our Ichimoku analysis, we suspect the SPX is headed for much lower ground as an event that has happened only twice in the last 8 years has just occurred, a weekly Kumo Break.





Photos: Oil At BP's Deepwater Horizon Gulf Spill Site

Posted by : George Washington

Post date: 08/21/2011 - 19:11

BP would NEVER lie to us ... 

Trouble in Paradise Strength of Swiss Franc Roils Saint-Tropez and Other Cities Across Europe




Getting ready for a wave of coal-plant shutdowns.

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