This Time Next US Presidential Campaign: $24.1 Trillion In Debt, 138.9% Debt/GDP
While
Obama may or may not be on the way to winning his reelection, courtesy
of a GOP field that is, to say the least, limited, and where the only
worthy candidate is more ostracized by the right than even anyone on the left, the bottom line is that whoever wins the presidency, it will matter precisely didley squat.
As the US debt clock shows, fast forwarding 4 years, or to February
2016, when the next presidential race will be in its final stretch, America
will have $24.1 trillion in debt, about $9 trillion more than it does,
now on $17.4 trillion in GDP, for a gross debt to GDP ratio of 138.9% (and
Apple's $1 trillion market cap will account for 150% of the Nasdaq...
just as IBM is 125% of the DJIA). Needless to say, it will be long past
game over at that point confirming that the current presidential race,
with its exciting tangential detours into female fertility, moon
bases, LBO IRR maximization courtesy of cost-cutting, is completely and
utterly meaningless. Also, keep in mind, "at current rates" for an
endspiel that has now entered the exponential phase in virtually every
category, is to say the least, optimistic. Yes, interest rates may be
negative in 2016, but that means that the liquidity trap endgame has
not only begun, but is well on its way to ending, and mercifully
putting an end to this whole Keynesian "sustainability" charade.
Remember: Japan's debt-deflation lasted for 30 years only thanks to new
pockets of incremental global leverage and inflation: China and the
PIIGS. This time, absent the levering of the entire continent of
Africa, there is noone who can take the releverage baton and run. Which
means the only "buyers" will be the central banks. At least back in
the day, Weimar just one nation. This time, it will be the "Weimar
World."Europe: "The Flaw"
We have posted various extracts from this piece from Credit Suisse previously. We will post from it again, because, to loosely paraphrase Lewis Black, it bears reposting... especially in the context of the latest and greatest Greek "bailout" (of Europe's bankers), which incidentally, will achieve nothing and merely bring the country one step closer to a military coup and/or civil war.Ron Paul Interview after 36% Breakthrough Maine Finish
Registered Ounces of Silver in the Comex Warehouse
There is No Such Thing as Free Birth Control
from TFMetalsReport.com:
As
you know, I’m very excited about the prospects for the fiat-conversion
price of silver this year. It’s going to a big year, perhaps even
historic. That does not mean, however, that silver will move in a
straight line up. I still believe the The Evil Empire intends to
dramatically lessen, if not eliminate, their long-time manipulative
short position. However, a careful review of the situation at ground
level leads me to think that we’re not out of the woods yet.
As you know, silver has already had a big 2012. Silver closed on 12/30/11 at $27.92/ounce. It closed yesterday at $33.60. In just six weeks, this means silver is already UP over 20%. Spectacular! At this rate, silver would be $40 by April 1st, $57 by mid-summer, $83 by fall and $120 by year end. Now, of course, the prospect of $120 silver makes you and I very excited. Jamie, Blythe and Ruprecht…not so much.
Read More @ TFMetalsReport.com
As
you know, I’m very excited about the prospects for the fiat-conversion
price of silver this year. It’s going to a big year, perhaps even
historic. That does not mean, however, that silver will move in a
straight line up. I still believe the The Evil Empire intends to
dramatically lessen, if not eliminate, their long-time manipulative
short position. However, a careful review of the situation at ground
level leads me to think that we’re not out of the woods yet.As you know, silver has already had a big 2012. Silver closed on 12/30/11 at $27.92/ounce. It closed yesterday at $33.60. In just six weeks, this means silver is already UP over 20%. Spectacular! At this rate, silver would be $40 by April 1st, $57 by mid-summer, $83 by fall and $120 by year end. Now, of course, the prospect of $120 silver makes you and I very excited. Jamie, Blythe and Ruprecht…not so much.
Read More @ TFMetalsReport.com
from King World News:
Today
Michael Pento told King World News the large trade deficit and desire
to consume foreign goods is evidence that the United States is growing
weaker by the day. Pento, who founded Pento Portfolio Strategies, also
said foreigners may soon start to reject the idea of purchasing US
bonds. Pento had this to say about the situation: “The Main Stream
Media is extolling the virtues of our rising U.S. trade deficit as a
sure sign the economy is well on the road to a full and viable recovery.
It was reported this week that our level of trade imbalance jumped to a
six-month high in December to $48.8 billion (up 3.7%), from $47.1
billion in the prior month. For all of 2011, the shortfall grew 12% to
$558 billion, the most since 2008.”
Michael Pento continues: Read More @ KingWorldNews.com
Today
Michael Pento told King World News the large trade deficit and desire
to consume foreign goods is evidence that the United States is growing
weaker by the day. Pento, who founded Pento Portfolio Strategies, also
said foreigners may soon start to reject the idea of purchasing US
bonds. Pento had this to say about the situation: “The Main Stream
Media is extolling the virtues of our rising U.S. trade deficit as a
sure sign the economy is well on the road to a full and viable recovery.
It was reported this week that our level of trade imbalance jumped to a
six-month high in December to $48.8 billion (up 3.7%), from $47.1
billion in the prior month. For all of 2011, the shortfall grew 12% to
$558 billion, the most since 2008.”Michael Pento continues: Read More @ KingWorldNews.com
Greece Just a New Place For an Old-School Financial Warfare and Occupation?
by BrotherJohnF:
As we watch the next stage of the Greek crisis unfold, one cannot ignore the sheer absurdity of the situation. First of all, we have “Greek Anarchists” lobbing Molotov cocktails at the police, in protest of “austerity measures”. To start off let’s make one thing perfectly clear; people who demand more money from the government are the farthest thing from anarchists one could imagine. Anarchists are people who want the government to leave them alone. These vermin are not lobbing fireballs at the police because they feel the state is stealing their hard earned money. They are rioting because they feel the state should be giving them more money. These are not anarchists, but rather violent unionists, socialists, and communists.
The fact that the press never sees fit to print the headline screeching “Leftist Violence Increases” is telling enough. But the absurdity of the situation becomes even more apparent when we take a closer look at the numbers. The latest figures for the bailout are 170 billion dollars . Let’s try to put that in perspective. Greece is a nation of 11 million people . 170 billion dollars divided by 11 million is 15,454 dollars per person. To get a grasp of that number let’s compare it to the United States. The U.S. has a population of 312 million people. A 15,454 dollars per person bailout of the U.S would equal roughly 5 trillion dollars.
Read More @ BrotherJohnF.com
Dear CIGAs,
Please click the link below to listen to this week’s metals wrap up from King World News, featuring our very own Trader Dan Norcini.
Click here to listen to the weekly metals wrap up…
Jim Sinclair’s Commentary
Securitized real estate debt is the national problem. Foreclosure of subprime and other loans is the fall out.
But hey, let’s re-write history.
Fed’s Pianalto : Foreclosures Have Become A National Crisis By Cynthia Lin
02/10/2012 | 01:16pm
NEW YORK -(Dow Jones)- Foreclosures in the housing market have become a national crisis, a regional Federal Reserve president said Friday, noting however that the drop in property value in her particular region is more deeply rooted.
Federal Reserve Bank of Cleveland President Sandra Pianalto spoke before a housing services audience in Cleveland, encouraging the community to work together in improving the appeal of living in older, more industrial cities.
These older cities have suffered housing foreclosures like the rest of the nation, but Pianalto says the high vacancy and abandonment rates are the more troubling issues.
"Our challenges with vacant and abandoned housing are immediate, but they are the result of forces that have been at work long before the recent financial crisis and recession," she said.
The official, who recently rotated into a voting slot on the Fed’s policy-making committee, made no mention of her outlook on the broader U.S. economy nor her position on the current monetary policy.
More…
Jim Sinclair’s Commentary
Two so far this weekend.
Bank Closing Information
February 10, 2012
These links contain useful information for the customers and vendors of these closed banks.
SCB Bank, Shelbyville, IN
Charter National Bank and Trust, Hoffman Estates, IL
http://www.fdic.gov
Jim Sinclair’s Commentary
The Grim Reaper that was part of the problem now accelerates the problem.
S&P downgrades 34 Italian banks MILAN | Sat Feb 11, 2012 1:31am IST
(Reuters) – Rating agency Standard & Poor’s downgraded 34 Italian banks on Friday, including heavyweights UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), citing a reduced ability to roll over their wholesale debt and expected weak profitability.
The move follows S&P’s downgrade of Italy’s sovereign rating last month to BBB+, part of a mass downgrade of nine euro zone countries.
In a statement, S&P said its so-called Banking Industry Country Risk Assessment had worsened to group 4 from group 3 — out of 10 groups — reflecting its more negative view on Italy’s banking system.
"Italy’s vulnerability to external financing risks has increased, given its high external public debt, resulting in Italian banks’ significantly diminished ability to roll over their wholesale debt," it said.
"We anticipate persistently weak profitability for Italian banks in the next few years, and a risk-adjusted return on core banking products that may not be sufficient for banks to meet their cost of capital.
More…
Jim Sinclair’s Commentary
Here is the latest from John Williams’ must have subscription site, www.ShadowStats.com
- Annual Trade Deficit Widened to $558 Billion in 2011, from $500 Billion in 2010, A Negative for Both the U.S. Dollar and the U.S. Economy
- Trade Could Pressure GDP Revision to Downside
- More Jobs Lost to NAFTA
No. 417: December 2011 and Annual Trade Deficit
http://www.shadowstats.com
Jim Sinclair’s Commentary
There is no practical fix to the mess of unfunded contractual obligations.
This is mope at a spiritual level.
EU Agrees Rules for $700 Trillion Derivatives Market Published: Friday, 10 Feb 2012 | 4:41 AM ET
European Union diplomats and the European Parliament agreed on Thursday to overhaul regulation of the roughly $700 trillion derivatives market, a move that will make it easier to control one of the most opaque areas of finance.
The new regime, which could be largely in place by the end of 2012, will overhaul a market that boomed in the decade before the economic crash and was blamed for amplifying the crisis by hiding risks from regulators.
Under new EU laws, banks, hedge funds and other buyers and sellers of derivatives will be encouraged to move away from the unregulated ‘over-the-counter’ market, which accounts for almost 95 percent of all trades.
"The era of opacity and shady deals is over," said Michel Barnier, the European commissioner in charge of writing these and other new rules to reform finance.
"It is a key step in our effort to establish a safer and sounder regulatory framework for European financial markets." In the past, it has been common for multi-million-euro contracts to be recorded by no more than a fax, with only the parties involved aware of the details.
This will change under the new law, which would standardize most trading so it happens on open exchanges. Settlement of such deals will be cleared centrally, making them easier to monitor.
More…
Jim Sinclair’s Commentary
That is not entirely correct. The choice is up to the ISDA who is run by the banks, and international investment firms.
As we watch the next stage of the Greek crisis unfold, one cannot ignore the sheer absurdity of the situation. First of all, we have “Greek Anarchists” lobbing Molotov cocktails at the police, in protest of “austerity measures”. To start off let’s make one thing perfectly clear; people who demand more money from the government are the farthest thing from anarchists one could imagine. Anarchists are people who want the government to leave them alone. These vermin are not lobbing fireballs at the police because they feel the state is stealing their hard earned money. They are rioting because they feel the state should be giving them more money. These are not anarchists, but rather violent unionists, socialists, and communists.
The fact that the press never sees fit to print the headline screeching “Leftist Violence Increases” is telling enough. But the absurdity of the situation becomes even more apparent when we take a closer look at the numbers. The latest figures for the bailout are 170 billion dollars . Let’s try to put that in perspective. Greece is a nation of 11 million people . 170 billion dollars divided by 11 million is 15,454 dollars per person. To get a grasp of that number let’s compare it to the United States. The U.S. has a population of 312 million people. A 15,454 dollars per person bailout of the U.S would equal roughly 5 trillion dollars.
Read More @ BrotherJohnF.com
by Eric McWhinnie, SilverSeek.com:
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”-Warren Buffett
In a recent Fortune article, Warren Buffett provided a glimpse into his upcoming annual shareholder letter. Buffett used this opportunity to once again remind everyone how much he dislikes gold. He cites gold’s limited industrial demand and places the precious metal in a category of assets that “will remain lifeless forever.” However, there are two precious metals that are considered to be monetary safe-havens. Sometimes referred to as gold’s little brother, silver has also acted as a hedge against uncertainty and fiat currencies. Furthermore, its industrial use is far from being lifeless.
Buffett paints another analogy of the world’s gold stock as a useless cube that would fit within a baseball infield. At $1,750 per ounce, this pile of gold would be worth $9.6 trillion. He then visualizes another pile where as an equal amount, you could buy all U.S. cropland, 16 Exxon Mobils and still have $1 trillion left over for “walking-around money.” He wonders what investor with $9.6 trillion would select the gold pile over the latter. While Buffett’s thinking about gold is somewhat understandable, he continues to omit silver from the conversation. Maybe Buffett is still sour from his past venture into the most conductive metal known to man?
Read More @ SilverSeek.com
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”-Warren Buffett
In a recent Fortune article, Warren Buffett provided a glimpse into his upcoming annual shareholder letter. Buffett used this opportunity to once again remind everyone how much he dislikes gold. He cites gold’s limited industrial demand and places the precious metal in a category of assets that “will remain lifeless forever.” However, there are two precious metals that are considered to be monetary safe-havens. Sometimes referred to as gold’s little brother, silver has also acted as a hedge against uncertainty and fiat currencies. Furthermore, its industrial use is far from being lifeless.
Buffett paints another analogy of the world’s gold stock as a useless cube that would fit within a baseball infield. At $1,750 per ounce, this pile of gold would be worth $9.6 trillion. He then visualizes another pile where as an equal amount, you could buy all U.S. cropland, 16 Exxon Mobils and still have $1 trillion left over for “walking-around money.” He wonders what investor with $9.6 trillion would select the gold pile over the latter. While Buffett’s thinking about gold is somewhat understandable, he continues to omit silver from the conversation. Maybe Buffett is still sour from his past venture into the most conductive metal known to man?
Read More @ SilverSeek.com
February 11, 2012, at 1:53 pm
by Dan Norcini in the category King World News, Trader Dan Norcini |
Print This Post | 
Email This Post
by Dan Norcini in the category King World News, Trader Dan Norcini |
Print This Post | Email This PostDear CIGAs,
Please click the link below to listen to this week’s metals wrap up from King World News, featuring our very own Trader Dan Norcini.
Click here to listen to the weekly metals wrap up…
Jim Sinclair’s Commentary
Securitized real estate debt is the national problem. Foreclosure of subprime and other loans is the fall out.
But hey, let’s re-write history.
Fed’s Pianalto : Foreclosures Have Become A National Crisis By Cynthia Lin
02/10/2012 | 01:16pm
NEW YORK -(Dow Jones)- Foreclosures in the housing market have become a national crisis, a regional Federal Reserve president said Friday, noting however that the drop in property value in her particular region is more deeply rooted.
Federal Reserve Bank of Cleveland President Sandra Pianalto spoke before a housing services audience in Cleveland, encouraging the community to work together in improving the appeal of living in older, more industrial cities.
These older cities have suffered housing foreclosures like the rest of the nation, but Pianalto says the high vacancy and abandonment rates are the more troubling issues.
"Our challenges with vacant and abandoned housing are immediate, but they are the result of forces that have been at work long before the recent financial crisis and recession," she said.
The official, who recently rotated into a voting slot on the Fed’s policy-making committee, made no mention of her outlook on the broader U.S. economy nor her position on the current monetary policy.
More…
Jim Sinclair’s Commentary
Two so far this weekend.
Bank Closing Information
February 10, 2012
These links contain useful information for the customers and vendors of these closed banks.
SCB Bank, Shelbyville, IN
Charter National Bank and Trust, Hoffman Estates, IL
http://www.fdic.gov
Jim Sinclair’s Commentary
The Grim Reaper that was part of the problem now accelerates the problem.
S&P downgrades 34 Italian banks MILAN | Sat Feb 11, 2012 1:31am IST
(Reuters) – Rating agency Standard & Poor’s downgraded 34 Italian banks on Friday, including heavyweights UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), citing a reduced ability to roll over their wholesale debt and expected weak profitability.
The move follows S&P’s downgrade of Italy’s sovereign rating last month to BBB+, part of a mass downgrade of nine euro zone countries.
In a statement, S&P said its so-called Banking Industry Country Risk Assessment had worsened to group 4 from group 3 — out of 10 groups — reflecting its more negative view on Italy’s banking system.
"Italy’s vulnerability to external financing risks has increased, given its high external public debt, resulting in Italian banks’ significantly diminished ability to roll over their wholesale debt," it said.
"We anticipate persistently weak profitability for Italian banks in the next few years, and a risk-adjusted return on core banking products that may not be sufficient for banks to meet their cost of capital.
More…
Jim Sinclair’s Commentary
Here is the latest from John Williams’ must have subscription site, www.ShadowStats.com
- Annual Trade Deficit Widened to $558 Billion in 2011, from $500 Billion in 2010, A Negative for Both the U.S. Dollar and the U.S. Economy
- Trade Could Pressure GDP Revision to Downside
- More Jobs Lost to NAFTA
No. 417: December 2011 and Annual Trade Deficit
http://www.shadowstats.com
Jim Sinclair’s Commentary
There is no practical fix to the mess of unfunded contractual obligations.
This is mope at a spiritual level.
EU Agrees Rules for $700 Trillion Derivatives Market Published: Friday, 10 Feb 2012 | 4:41 AM ET
European Union diplomats and the European Parliament agreed on Thursday to overhaul regulation of the roughly $700 trillion derivatives market, a move that will make it easier to control one of the most opaque areas of finance.
The new regime, which could be largely in place by the end of 2012, will overhaul a market that boomed in the decade before the economic crash and was blamed for amplifying the crisis by hiding risks from regulators.
Under new EU laws, banks, hedge funds and other buyers and sellers of derivatives will be encouraged to move away from the unregulated ‘over-the-counter’ market, which accounts for almost 95 percent of all trades.
"The era of opacity and shady deals is over," said Michel Barnier, the European commissioner in charge of writing these and other new rules to reform finance.
"It is a key step in our effort to establish a safer and sounder regulatory framework for European financial markets." In the past, it has been common for multi-million-euro contracts to be recorded by no more than a fax, with only the parties involved aware of the details.
This will change under the new law, which would standardize most trading so it happens on open exchanges. Settlement of such deals will be cleared centrally, making them easier to monitor.
More…
Jim Sinclair’s Commentary
That is not entirely correct. The choice is up to the ISDA who is run by the banks, and international investment firms.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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