UBS Issues Hyperinflation Warning For US And UK, Calls It Purely "A Fiscal Phenomenon"

From UBS: "We think that a creditor nation is less at risk of hyperinflation than a debtor nation, as a debtor nation relies not only on the confidence of domestic creditors, but also of foreign creditors. We therefore think that the hyperinflation risk to global investors is largest in the US and the UK. The more the fiscal situation deteriorates and the more central banks debase their currencies, the higher the risk of a loss of confidence in the future purchasing power of money. Indicators to watch in order to determine the risk of hyperinflation therefore pertain to the fiscal situation and monetary policy stance in high-deficit countries. Note that current government deficits and the current size of central bank balance sheets are not sufficient to indicate the sustainability of the fiscal or monetary policy stance and thus, the risk of hyperinflation. The fiscal situation can worsen without affecting the current fiscal deficit, for example when governments assume contingent liabilities of the banking system or when the economic outlook worsens unexpectedly. Similarly, the monetary policy stance can expand without affecting the size of the central bank balance sheet. This happens for example when central banks lower collateral requirements or monetary policy rates, in particular the interest rate paid on reserves deposited with the central bank. A significant deterioration of the fiscal situation or a significant expansion of the monetary policy stance in the large-deficit countries could lead us to increase the probability we assign to the risk of hyperinflation."

Beige Book Not Nearly Red Enough For Imminent QE

The Fed's Beige Book was just released and for those looking for cliff-dropping and panic-driven views of the plunge in the economy, we are sorry. The Beige Book was, well, beige. Some headlines, via Bloomberg:

• *FED SAW WEAKER U.S. MANUFACTURING, RETAIL SPENDING LAST MONTH
• *FED SAYS LOAN DEMAND `GREW MODESTLY' IN MOST DISTRICTS
• *FED SAYS MANUFACTURING EXPANDED `SLOWLY' IN MOST DISTRICTS
• *FED: HOUSING MARKET REPORTS `LARGELY POSITIVE'
• *FED SAYS DISTRICTS' BUSINESS CONTACTS `CAUTIOUSLY OPTIMISTIC'

The word-cloud highlights the 'continued activity' though does note 'demand pressures', 'slowed markets' and 'sales conditions'. Maybe we will just muddle through with our lower earnings and weaker outlooks but never quite bad enough to get Ben off the bench.

 

Santelli Slams "It's Not My Job" Bernanke And Screams "Enough Is Enough"

CNBC's Rick Santelli is goaded into responding to the easing-based hope that is driving stock prices and levitating every risk asset class. "Enough is enough", he notes, quoting Volcker's recent comments, "as we have to let the economy sink or swim on its own at this point." Liesman's responds by stepping away a little from his comments as he leaves Bernanke alone believing that QE will do some good at the margin (while the economic reporter remains less sure). Implicit in his downgrade of the economy is an increase in the probability of additional QE and retail sales sank the ship. A little later in this brief clip, Rick goes full-Santelli - feeling the need to add a third pillar to the Fed's mandate "if we see something wrong in the market, it's our job to do something about it" with Bernanke's response being "it's not my job". Critically, Rick notes, "if anybody listening or watching right now ever thinks that more regulators will ever stop anything, you have to watch Ben Bernanke - appears to be an honest guy and straightforward though I don't always agree with him - saying 'it's not my job. I don't regulate that.' unbelievable!" The CYA, not-my-problem, someone-else-did-it, keep-my-job mentality when it's front-and-center in the most powerful financial entity in the world is deplorable.

How Can Anyone Possibly Take The Bernank Seriously?

By Dan Denning, Daily Reckoning.com.au:

Yes. Today’s Daily Reckoning will have to digest the drivel and bunkum dished out by US Federal Reserve Chairman Ben Bernanke. The Fed head spoke in front of the Senate Banking Committee in Washington DC. Mesmerised zombies everywhere hung on his every word for clues about when the next round of free money will be injected into the rotting corpse of the financial markets. Aussie share markets will react to this.
How can anyone possibly take Ben Bernanke seriously? He told the Senate Banking Committee that the Fed’s unconventional policies have been, ‘effective in easing financial conditions and promoting strength in the economy,’ and that, ‘Large-scale asset purchases have also contributed to economic growth.’ He added that the Fed is ‘prepared to take further action as appropriate to promote a stronger economic recovery.’
Bernanke still subscribes to the view that if you make credit cheaper, you’ll boost economic growth. As far as we could tell, he provided absolutely no proof that the Fed’s purchase of US Treasury bonds and mortgage bonds in QE1 and QE2 did anything to promote growth in the real economy. All he’s done is boost stock prices and make it easier for the US government to finance its deficits.
Read More @ DailyReckoning.com.au

The Bernank Discusses "Theoritcal Limit" To QE, Says Too Much "Would Hurt The Market"

Some rather unexpected rational insight out of Bernanke responding to Patrick McHenry's question on whether and how much more QE the Fed can do:

• "I assume there is a theoretical limit on QE as the Fed can only buy TSYs and Agencies"
• "If the Fed owned too much TSYs and Agencies it would hurt the market"

But in closing:

• "We still have some capacity at this point."

Perhaps the market was expecting that the Fed would admit it can buy ETFs and REITs like the BOJ, or that it can sell vol into the single digits, as its New York Fed trading desk is rumored to be doing, but this is hardly the stamp of endorsement to buy any stock come hell or high water that the algos now expect out of the Fed.

Spot The Odd Market Out

Presented without commentary...

 

Down The Line We Will Have Massive Wealth Destruction

Admin at Marc Faber Blog - 1 hour ago

Somewhere down the line we will have a massive wealth destruction. That usually happens either through very high inflation or through social unrest or through war or credit-market collapse. -*in CBS Market Watch* *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.* 

 

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Bad Economic Signs 2012

There is a strange delayed reaction between the initial exposure of weakness in the financial system and the public’s realization of the truth, sort of like Wile E. Coyote dashing off a cliff in the cartoons only to continue running in mid-air above the abyss below.  It is a testament to the fact that beyond the math, there is an undeniable power of psychology in our economy.  The investment world naively believes it can fly, even with the weight of endless debt around its ankles, and for a very short time, that pure delirious oblivious belief sustains the markets.  Eventually, though, gravity always triumphs over fantasy…

 

Gasoline Prices back on the Rise

Trader Dan at Trader Dan's Market Views - 2 hours ago

Call it a "stealth rally" as it has not been garnering any headlines, but unleaded gasoline futures have quietly been on the rise for the last three weeks after bouncing off of the $2.50 level and are now pushing back towards the important 50% Fibonacci retracement level of the entire decline from the late March peak . Coming at the same time that we are seeing the grains soaring higher (see my recent article on this), it is soon going to be packing a one-two punch to consumers between food and energy costs. Prices at the pump had been coming down giving some relief to drivers and t... more » 


 

Yet Another Sign of Accumulation In Equities

Eric De Groot at Eric De Groot - 4 hours ago

Intel results tell you nothing about the broad market trend. While the body of evidence still favors the risk-off trade over the short-term, it does not negate a growing signs of accumulation this summer. Yet another sign of accumulation is a positive divergence between stock prices and ADN(E), a measure of market participation or breadth. ADN(E)'s new all-time... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Goldman Enters The "Corn Trade"

All throughout the epic surge in corn prices, the big Kahoona, Goldman Sachs, where buy means sell, and sell means Goldman's traders are buying everything its clients have to dump, was quiet. That is no longer the case: "we recommend a short May-13 CBOT wheat position vs. a long May-13 CBOT corn position." In other words, Goldman will now be selling May 13 corn. We all know how these recommendations end.




False Flag?...

Two Buses With 40 Israeli Tourists Blown Up At Bulgarian Airport

Update 2: Blame it on Iran: ISRAELI PRIME MINISTER SAYS SIGNS THAT IRAN BEHIND BURGAS BOMBING -RTRS
Update: According to BurgasInfo.com not one but two buses were blown up. Unclear if the second one was also carrying Israeli tourists.
According to Bulgarian press Sega.bg, and confirmed by other wire sources, a bus with 40 Israeli tourists was "blown up" at 5:30 pm local time at the local airport of the seaside town of Bourgas. Sega says that according to BTV "it is an assassination attempt." The bomb was located in the trunk of a white bus with Israel tourists from Israel who were en route to the seaside town of Sunny Beach according to an airport source. The mayor of the city, Dimitar Nikolov confirmed the news according to Sega. Furthermore, according to the airport's website, an Air Via flight from Tel Aviv landed at 4:50 pm local time. The shock wave was so large it also exploded two neighboringing buses located in the arrival area of the airport. The number of casualties is currently unknown, but at least three people are dead according to the local police, with dozens wounded. Sega adds "the flames are huge with three firetrucks on the scene and seven ambulances driving out charred people."

Netanyahu Accuses Iran Of Being Behind Bulgarian Bus Explosion

The number of casualties in the Bulgarian bus explosion (reported earlier) is not even known yet, but Israel already knows just who is behind it:

• ISRAELI PRIME MINISTER SAYS SIGNS THAT IRAN BEHIND BURGAS BOMBING -RTRS
• NETANYAHU SAYS ISRAEL WILL RESPOND 'WITH FORCE'

Elsewhere:

• CARNEY SAYS OBAMA BRIEFED ON BULGARIA BLAST THAT HIT ISRAELIS
• CARNEY SAYS US NOT IN POSITION TO SAY WHO IS RESPONSIBLE FOR THE BUS ATTACK

And here we were wondering why crude spiked above $90 for the first time in months earlier today.

Words of War

by Bruce Krasting, Bruce Krasting Blog:
I had an interesting conversation with a fellow who lives in Europe and has been connected to the spook world in the past. (See this for prior discussions with him.) It went like this:
Paris: Have you been watching the events in Syria?
BK: Not really. I’m not sure what, if any, are the implications of this is.
Paris: You should. Things are moving faster and faster. For example, have you seen the level of fighting in the streets of Damascus the past few days?
BK: No. It seems there is fighting every day.
Paris: There is now heavy fighting in the capital of Damascus. Clearly, the opposition has grown substantially for this to happen. It also means that the fighters are being armed. They would not take on a battle in the capital unless they were well armed.
BK: Interesting. Where are they getting these arms?
Paris: The same place that the Libyans got theirs, the Qataris and the Saudis.
BK: Ah! How do the Saudis and Qataris get arms into Syria?
Paris: Through Turkey, of course. You don’t think those Turkish jets got shot down by accident do you? This was the excuse for Erdogon (Turkish President) to get involved. Now he is.
BK: Why would Erdogon want to get involved in the Syrian mess?
Read More @ BruceKrasting.blogspot.com
 

Hero Shoots Would-Be Robbers [Note to UN: Freedom Loving Americans Will NEVER Allow Themselves To Be Disarmed]

from Live Leak:

Two men who attempted to hold up an Internet cafe were shot and injured by a patron of the business Friday night, according to the Marion County Sheriff’s Office. Sheriff’s officials said they got a call at 9:54 p.m. about an armed robbery at Palms Internet Cafe, 8444 SW State Road 200. When deputies arrived at the scene, patrons outside the business told them that two men in masks — one armed with a baseball bat and the other with a handgun — had barged into the business. The robbers told the approximately 30 patrons to get on the floor, and they demanded money. Officials said one of the patrons, Samuel Williams, drew his own handgun and shot at the robbers.
Read More @ Live Leak

Metals, Grains & Crude. Oh, My!

from TF Metals Report:
A very interesting day in all three. What will Wednesday bring?
First, the metals. As has been the case for all of 2012, The Bernank spoke today and down went gold and silver. After nearly reaching $1600 in early London trading, gold was pummeled well in advance of The Bernank and fell to as low as $1572 shortly after The Great Douchebag spoke. However, contrary to pattern from earlier this year, the metals subsequently reversed and traded higher, reaching $1592 just two hours later. Both metals have since been beaten back but the action today was encouraging, nonetheless. As you can plainly see on the charts below, both metals are rapidly moving toward a conclusion of their multi-month corrections. When they break…which will be soon…they will both break sharply and decisively higher.
Read More @ TF Metals Report.com

Derivatives Should Be Banned From Financial Markets

by James Rickards, USNews.com
The idea that the financial products known as derivatives pose a danger to the financial system is nothing new. Commentators have been pointing this out for years. Most famously, Warren Buffett referred to derivatives as “time bombs” and financial “weapons of mass destruction.” Recently a complex derivatives trade caused over $5 billion in losses at J.P. Morgan.
Derivatives are bets between two parties that are made today with a payoff in the future based on the value of some stock, bond, or index. One party will profit if the reference security or index goes up in value and the other party will profit if it goes down. These bets usually settle up every three months based on value at that time, and then a new calculation period begins. There are many variations on this basic pattern, but almost all derivatives involve some form of a bet in which gains and losses are calculated and settled-up periodically.
If derivatives are as dangerous as the commentators suggest, why are they permitted? If they are such a threat to the financial system, why does the size of derivatives bets continue to grow? The answers have to do with several myths the big bank derivatives players have created. These myths are false and distract interested parties from doing what needs to be done to ban derivatives. It’s time to demolish these myths once and for all.
Read More @ USNews.com

Timmy Tax Cheat Geithner “Aided and Abetted” LIBOR Crimes: Jim Rickards

by Aaron Task, Finance.Yahoo.com:

The Story of When I Spilled My Drink, Got Kidnapped & Tortured

“How to stay out of jail? Simply submit. Do not mention that you know your rights. Knowing your rights is a punishable offense in-and-of itself in the New America.”
from Silver Vigilante:

When I spilled half of my drink at a Las Vegas nightclub, I was asked to leave. When I asked for my money back, the real crime commenced, as I was kidnapped by thugs and thrown in a cage.
The laws on the books in the United States and beyond detail a vast and complex web on bureaucratese which, in the end, leads to nothing more than ensuring innocent people end up in jail. And, when these individuals end up in jail, they are forced – with weapons – to endure psychological torture and inhumane conditions until they get released. Among the laws which can get a peaceful individual kidnapped and tortured in Las Vegas are the following:

• Sec. 8.12.015. Sitting or lying down on public sidewalks in the downtown redevelopment district prohibited. Read More @ Silver Vigilante
  

Two Sides of the Same Flag: How Israel’s Natural Gas Will Change the World

by Marin Katusa, Casey Research:
Relations amongst the countries of the Middle East revolve around religion and historic allegiances. The region’s Muslim countries are divided into Sunni and Shiite camps while Jews and Christians are in a constant battle for representation. The historic Camp David peace accord between Egypt and Israel has provided a cornerstone for regional relations for years (though it is showing signs of strain in the post-Mubarak era), and the United States has long supported these two nations alongside Saudi Arabia and its allies while Russia shored up Iran, Syria, and those in the opposing group. Grievances often go back decades, if not longer, and there are so many interested parties that it is nigh impossible to move without stepping on someone’s toes.

But there is one force that is more powerful in the pulsing Middle East than even religion: energy.

Oil and gas mean money and power, two great enablers that make anything possible. Why else would one of the world’s most conservative Muslim countries – Saudi Arabia – align itself so closely with the United States, a showcase of liberal thought and personal freedom?

Read More @ CaseyResearch.com

How close are we to a new Great Depression?

by Bil Holter, MilesFranklin.com:
How close are we to a new Great Depression?“  This was a question and article put out by none other than CNBC Monday.  Going back to the piece that I wrote yesterday, had we not run a deficit equal to 10% per year of GDP, the 2008-09 “recession” would have seen a decline of OVER 10% (a 10% or greater decline of GDP  IS the definition of a “depression”) and we would never have had a positive quarter since then.  In short, the answer to CNBC’s question is that we ALREADY are and HAVE BEEN in a depression since late 2007, early 2008.

Look at housing for example, I can remember back in the mid to late 1980′s where 1.5 million new homes were built per year in the U.S.  Fast forward to the current “recovery”, we have only built 1.5 million homes in the last 4 YEARS,…total!  This by the way is a drop of 75% or so.  Inventories are still very high and the foreclosures just keep on coming.  Banks have been withholding foreclosed homes from the market and not dumping them so as to not shoot themselves in the foot and smash prices further.  Ask yourself, are the banks on more solid footing today than they were back in 2008?  Look at the auto industry, back in the heyday, 16-17 million units were sold per year.  Now, after dropping to slightly less than 10 million units, 13 million is all we can hope for and still 20% lower than “the good old days”.

Read more @ MilesFranklin.com

Another ‘Flash ROB’ : This Time at an Albertsons Grocery Store

[Ed. Note: As we reported on Tuesday, the Madness of our lost society and the collapse of the social fabric is being documented. Curiously, this trend, as noted in some of the comments on Tuesday is being (mis)interpreted merely as "the spontaneous exuberance of over-excited and somewhat out-of-control shoppers". We're guessing they may feel differently when it happens to their place of business.]
from KGW.com:

Video | News | Weather | Sports

A group of teens targeted a Troutdale store last weekend** in a ‘flash rob’ and investigators are trying to identify the suspects [Ed. Note: **The video stamp indicates June 18th]. Investigators said as many as 40 kids entered the Albertsons store at 25691 SE Stark Street at the same time late Saturday night and started stealing things.
Security officers chased the thieves out, but no one was captured. They also left employees pretty shaken up, including one woman who was in tears after getting terrorized by the robbers. Investigators have not said exactly how many items were taken.
“Basically it looks like they went in, just to cause chaos, which they accomplished,” said Sgt. Steve Bevens with the Troutdale Police Department. Investigators believe the suspects ranged in age from 13 to 15. They could be seen on surveillance video, roaming from aisle to aisle.
Customers said the store employees were overwhelmed and outnumbered. “They [thieves] were bragging and laughing about how much stuff they stole and what they did in the store,” one witness told KGW.
Read More @ KGW.com

Trade Minister Green ‘has serious questions to answer’ over HSBC Drug & Terrorist Money Laundering

[Ed. Note: So, you want to wake up your family and friends? Teach them about the crimes of HSBC. It's the perfect example of how fascist corporations facilitate the drug trade and fund real terrorists. Meanwhile, the police state apparatus is rolled out in both the UK and the US under the pretense of preventing the drug trade and terrorism.]
UK Trade Minister Lord Green “has serious questions to answer” over his time running HSBC after the bank was forced to apologize before the US Senate for failing to stop a multi-billion-dollar laundering operation for drug gangs and terrorists.
from The Telegraph:
Lord Green was chief executive of London-based HSBC from 2003 to 2006 before becoming its chairman until 2010. He was appointed to the House of Lords when Prime Minister David Cameron made him Trade Minister last year.

In November last year he was given the role of supporting Chancellor George Osborne on Treasury matters, “in particular financial services and banking issues. He is already a member of the Cabinet Committee for Banking Reform,” the Treasury website states.

He is also an ordained priest in the Church of England and author of Good Value: Reflections on Money, Morality and an Uncertain World.

Today, a Treasury spokesman for the Labour Party challenged Lord Green to reveal if he knows anything about the scandal, which has led to the resignation of the bank’s head of compliance.

“The US Senate sub-committee’s report, which suggests that HSBC allowed money laundering by drug cartels and possibly even terrorists, is so serious that the bank’s head of compliance has already resigned,” Chris Leslie said. He added that Lord Green “now has serious questions to answer about what he knew and when”.

Read More @ Telegraph.co.uk

 

JP Morgan Spews “Cashless Society” Propaganda in TV Ad

by Michael Krieger, Liberty Blitzkreig

Look how cutesy JP Morgan is in their ad talking up the benefits of a cashless society, which is one of the key goals of TPTB.  Why is the war on cash a key goal?  Well if all your wealth is digital and they don’t like you…sorry we don’t know how your account got deleted sir.  Perhaps you shouldn’t have spoken out against the government.  Meanwhile, let’s not forget JP Morgan was right there in the middle of the MF Global missing funds and now seems to be there with PFG Best as well.  It’s true yet no one wants to talk about it.  See this Huffington Post piece.  Two words: Gold & Silver.

 

Hathaway: Gold Manipulation – Banks Are Agents Of The State

from KingWorldNews:
Today four-decade veteran John Hathaway told King World News, “People have talked about gold manipulation … There is tremendous corruption in the banking system, and I think the banks are now essentially agents of the state, more than they ever have been.” The prolific manager of the Tocqueville Gold Fund also warned, “… people are concerned that their liquid assets are not safe,” and “… there is enough in the system, right now, to justify gold trading well above $2,500.”

Here is what Hathaway had to say: “All of us look at the fundamentals and say, ‘How can gold not be $2,500?’ I remember back in 2008, and I asked myself, how can gold not be at a much higher number? What I learned then is the causes for gold to be trading higher are there, but you don’t get instant gratification in this game.”

“Let’s not forget we are fighting the powers that be, and they don’t want to see gold going to $2,500. So they are trying to paint the tape. People have talked about gold manipulation, and now we know that banks have manipulated LIBOR. There is tremendous corruption in the banking system, and I think the banks are now essentially agents of the state, more than they ever have been.

John Hathaway continues @ KingWorldNews.com

IT’S A FAKE: Obama Birth Record ‘Definitely Fraudulent’ – Sheriff Arpaio

[Ed. Note: A fake birth record is PROOF the Obama election was a soft coup. So now what? With no genuine mainstream media willing to report this (with the exception of AP, here), and a population so dumbed-down that 'Jersey Shore' is somehow a successful franchise, it's still likely that no justice will be done.]
from AP, via Yahoo:
Investigators for an Arizona sheriff’s volunteer posse have declared that President Barack Obama‘s birth certificate is definitely fraudulent.

Members of Maricopa County Sheriff Joe Arpaio‘s posse said in March that there was probable cause that Obama’s long-form birth certificate released by the White House in April 2011 was a computer-generated forgery.

Now, Arpaio says investigators are positive it’s fraudulent.

Mike Zullo, the posse’s chief investigator, said numeric codes on certain parts of the birth certificate indicate that those parts weren’t filled out, yet those sections asking for the race of Obama’s father and his field of work or study were completed.

Zullo said investigators previously didn’t know the meaning of codes but they were explained by a 95-year-old former state worker who signed the president’s birth certificate. Zullo said a writer who published a book about Obama’s birth certificate and was aiding investigators let them listen in on an interview he conducted of the former state worker.

Read More @ Yahoo.com

THE PUBLIC FOCUS: ZITS ON AN ELEPHANTS ARSE

from SRSrocco, Silver Doctors:
The title of this post was inspired by the frustrating conversations I have had with friends and acquaintances on the subjects of politics, energy and the economy. Normally, I keep my BIG TRAP SHUT. As one gets older (and supposedly wiser), you realize that people don’t change. Conservatives will more than likely die as conservatives. The majority of Liberals will also take their liberal philosophy to the grave. Furthermore, those who practice one of the organized flavors of religion will probably be buried by that same variety of church they were lifetime members.
People have been slowly programmed over their lifetime to believe and behave a certain way. Trying to convince someone their ideology is invalid is trying to input software that is not recognized by their own programming. Basically… it spits out the data and does not allow it to compute. A few paragraphs or a page of information is not going to change millions of pages of programming in a person’s mind.
That being said: every once in a great while, even I can’t help myself from following my own wisdom. The majority of conversations I have with friends and local acquaintances are based upon SUPERFICIAL SMALL TALK. Lately though, the conversations have moved to subjects of politics and the economy. I gather the overall situation in the country and the world is become so GRIM, that the public is starting to catch wind.
Read More @ SilverDoctors.com

The biggest misconception in gold and other factors driving the metal – Ronald Stoeferle

by Geoff Candy, MineWeb.com
Welcome to this week’s edition of Mineweb.com’s Gold Weekly podcast. Joining me on the line is Ronald Stöferle – he is an Analyst with Erste Group Bank AG in Vienna, Austria. Ronald you’ve just released a comprehensive report entitled “In Gold We Trust” – it’s an annual report that you put out for the Erste Group and it’s definitely one of the things that I think I wait for and a lot of people in the gold sector wait for these days, to get a good sense of what’s been going on, and this one, no different. There’s a lot happening, but in particular you talk about a number of the reasons why you think the foundations for a new all-time high in the hold price are being put in place. How do you see things panning out from here?
RONALD STÖFERLE: Yeah and once again thanks for having me again, always a pleasure. I think in general the foundations for new all-time highs is in place because we’re seeing more or less all over the world, negative real interest rates – not only in the US and in the eurozone, but especially in China and in India and I’m expecting this to continue and there’s also a big chapter about financial repression in the report, and I think it is kind of the solution for the over-indebtedness problems that we’re facing at the moment. I don’t say that it’s the right solution, but I think it’s the political will at the moment, so negative real interest rates mean a perfect environment for gold.
CLICK HERE TO LISTEN TO AUDIO

Very Real Danger of Collapse: “Could Be So Severe I Don’t Think Our Civilization Could Survive It”

by Mac Slavo, SHTFPlan:

The single most important factor responsible for fueling the last several decades of economic growth has been credit expansion. Whether it’s central banks lending money to large financial institutions, or private banks dispersing funds to businesses and individuals, our lifestyles simply would not have been made possible without it – builders couldn’t build homes, manufacturers couldn’t acquire raw materials, and consumers wouldn’t be able to consume. Living in a country whose currency happens to be the reserve trade instrument for the entire globe has had its benefits. We’ve built huge homes, enjoyed healthy diets, taken luxurious vacations; we’ve even exported menial jobs that no civilized members of society would ever engage in to third world labor camps.
In the process we’ve expanded our national debt to unprecedented levels, with some estimates suggesting that our total liabilities and commitments are approaching nearly $200 trillion in the next twenty five years.
By all accounts, we live in a system built on nothing more than a promise to repay what we’ve borrowed. This reverse trickle-down economics has left everyone bloated with debt, including the government as a whole, as well as the individual American who has bought his house, car, furnishings and overall lifestyle by taking on insurmountable levels of debt.
Read More @ SHTFPlan.com
 

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