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The controversy swirling around the new Weiss country ratings just keeps getting more intense …
Within minutes after Weiss Ratings announced that Uncle Sam’s credit rating is just two notches above junk, most in the media began howling that WE’RE BEING FAR TO HARD ON HIM … implying that we had lost our minds.
At the same time, our readers began telling us we AREN’T BEING TOUGH ENOUGH!
Meanwhile, this blog is buzzing with questions:
Frank and Mike want to know why we haven’t assigned credit ratings to India and Singapore.
Answer: Assigning these credit ratings is a very rigorous process that requires very important data points that are in some cases in dispute or unavailable. We are working diligently to acquire the missing data series on India and Singapore and as soon as we have them, we will issue their ratings.
Ganesh, Wasl and Bernard want to know why China — with less than total economic transparency and its state-run banks — could possibly top our list.
Answer: The numbers on China are readily available and are strong across the board, even if you factor in some exaggeration. If that changes, China will be downgraded accordingly. Moreover, our rating of China is in the tradition of Weiss Ratings: We never allow our own personal opinions or political bias to influence our ratings. We crunch the numbers and let the chips fall where they may.
Eric, William, Soren and many others ask how we could possibly have rated Canada “so low.” After all, our Northern neighbor has less debt and is a major world producer of gold, oil and other tangible assets.
Answer: Canada scored OK across the board. The U.S., on the other hand, scored low in three categories and very high in one: The dollar’s advantage as a world reserve currency and the U.S. capacity to borrow readily in global markets.
Here’s a metaphor that might help: Imagine a student who gets OK grades in four subjects; while another gets bad grades in some subjects but good grades in others. Their overall GPA could be the same, even though their strengths and weaknesses are very different.
Today’s Question of the Day:
“How would the bursting of the bond market bubble
impact the U.S. economy in 2011 and 2012?”
Yesterday, we asked you to tell us if you believe global investors will trash treasuries and crash the U.S. bond market THIS YEAR — and your responses are enlightening to say the least!
Some of our readers commented that the U.S. dollar is ALREADY crashing … but U.S. bonds are not. Their explanation: The Federal Reserve is buying up most of the new bonds being issued!
But many readers believe that the world’s central bankers and investors will get fed up with huge losses as the value of their dollar holdings continues to crater and begin stampeding out of the dollar AND out of treasuries within the next eight months.
So now, our question to you is: If the U.S. bond collapse scenario DOES unfold as they say, how will it impact the U.S. economy this year and next?
Just click this link and leave a comment to give us your thoughts. We’ll be standing by to answer any questions you may have about our new country ratings … what they mean to you and your family … and what you should be doing now to insulate your wealth.
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Dear Dr. Weiss,
Its apparent to me that the fact your firm invested in a foundation dealing with “cycles” going back to centuries – with graphs instead of just “guessing” proves to me that despite all of the professionals out there with their years of experience, the “proof of the pudding” must be in “black/white” Experts are fine but all experts guess sometimes right and sometimes wrong. and its obvious to me that you want to transcend experts, even your own!
So what is the bottom line when it comes to cycles? what are cycles and why are there cycles? What is the “core” of a cycle? I dont think this has been really addressed by most people involved with “cycles” Does predestination have a hand in it? In this case is there a historical bases connected with cycles other than just speculating in the financial world? Has it more meaning than the ups and downs dealing with money? What is the social,cultural, meaning behind cycles?
Thank you for addressing these questions/
Dr.Maurice Rothman
I subscribed to your options program back in the early 2000. I have followed you for years.
I will soon be moving back to Naples Fl. I would like to know the safest banks there. I was unable
to do so on the website you offered. Currently, I am with one of your safest banks in Texas…
Citizen’s 1st Bank in Tyler Texas…..are there any close to this quality in Naples?
Assuming the bursting of the bond bubble, there would be major consequences for the people of the US. First I lot of finally conservative people moved their funds to “safe” bonds to avoid the risky stock market. When bonds crash these people will be really hurt and have no idea why. They will say “But bonds were supposed to be safe”. So that will be a really bad situation.
While appreciate Australias natural resource proximity to the Asian boom, Canada has at least as much and clear, if more sea miles, access to them, and the bonuses of major timber and the US market at it’s doorstep. Both rising currencies hamper manufactured exports. Why does Australia rank so much higher than Canada on your list?
HELLO DR. WEISS,
IF BONDS CRASH WHAT HAPPENS TO TIPS IF INFLATION RISES. I HAVE MY ENTIRE RETIREMENT FUND IN A TIPS FUND. DO THEY STILL CRASH TO THE EXTENT OF THE DIFFERENCE BETWEEN INFLATION AND THE MARKET BEATDOWN ON BONDS? THANK YOU FOR ANY INSIGHT.
All I can add to the dicussion is the fact Grocery items I used to buy are now even a minimum of 35% higher now than just last month even at Wal-Mart! Sure, rising fuel prices do have some
impact on goods delivery, but 35%..I doubt it! Personally, firmly convinced that sooner of later
there will be a dollar devaluation, as has been common over the decades in Europe (Turn in 5
of the green for two of the Blue) I’m stashing silver coin as I consider gold worthless as a consumer medium of exchange even in an economic crash as coins are too expensive, and not recognizable by clerks or even managers in stores. Silver coins are negotiable even with a
Foreign employee of a convenience storesa hence I consider them real money but only those
minted before 1960 even though the clad junk didn’t appear until 1964! I’m just a consumer now
but as a mitigation do have an MBA and considerable business experience!
Dear Dr. Weiss:
We, at First Financial Resources, are also staunch students of historical perspective, analytics, economics, risk and market loss mitigation endeavors. We also attempt to undertake such studies for our most important of clients (i.e., American families and business owners).
The occasional black swan, pandemic, war or demographic wave (e.g., birth rates adjusted for inflation, etc.), CAN NEVER begin to tell the picture of man’s sordid history of boom and bust times.
Disadvantageous wealth distribution, inflation, taxes, social inequalities, or government and social spending or borrowing sprees MAY indeed HURT those less fortunate during an economic crisis, but we still must still each rely on the common sense –granted to the common man.
What does give insight to such matters, are current trends. The past and future are very temporal spaces. The here-and-now CAN BE relevant. Current climatic situations, just like an approaching weather pattern, are the economic classroom for the astute.
Thank you for being both a student (and a reliable teacher) in this current, global maelstrom of economic possibilities. It is a loud and boisterous class that you have undertaken to teach.
Cassandra was cursed with the gift of prophecy, and was misunderstood or denied her rightful power.
Those who rely on a righteous man’s wisdom, over and above the malevolent musings of holier-than-thou, half-gods at the Federal Reserve or White House, will be far better off listening to your common sense, expecially if or when the pillars of power fall because of straining egos, simple stupidity, gross miscalculations or the astounding averice of capatilist practices at their worst.
Godspeed and good luck to all Americans.
Thank you for your clarity.
DEAR DR WEISS WHY IS THE GOLD IN FORT KNOX NEVER MENTIONED? HOW MUCH IS THERE AND WHO OWNS AND CONTROLS IT? VAN
The crashing of the US dollar and the eventual crashing of US Treasuries will decentralize power and force regions, states and municipalities to become more self-governing – to me a good event! Washington DC politicians and all the centrist power players located there are losing power and control as the once mighty dollar breaks down to lower lows. After all, their power is based on taxation and as taxes bring in dollars of lesser and lesser value, their power erodes. On the international scene, the US is getting less relevant with each passing day and the ability to exercise an empirical strategy is continually eroded. Hillary Clinton’s whines are based on her perception that our State Department does not hold center sway as it once did. It is ironic that the money printers actions shall result in their own demise. BRING ON THE INFLATION, I SAY, YE HARBINGER OF LIBERTY FROM THE TYRANNY OF CENTRIST POWER!
Bad for borrowing and the economy but good for the stock market as people will be fleeing fixed income to add to equities.
However,, that isn’t going to happen this year or next because Bernanke and this administration won’t let it happen. We’ll have to wait till the next election cycle to see if we have enough elected congressmen and senators who know what we are dealing with and can and will put a long term plan in place to reverse the 5 decades of stupid economic policy decisions made by our too smart for there own britches government.
QE2 will end and they’ll find some other mechanism to prop up the market till this administration is out of office.
Tend to the faith and trust of the USA by direct debt reduction. Please read on!
In school, K-12, and at the 4th of July, most Americans have pledged allegiance to the flag of the USA, AND TO THE REPUBLIC FOR WHICH IT STANDS.
That Republic’s Owner’s Manual and Blue Print is The Constitution of the USA.
In adult life, many Americans, e.g. politicians and defense service folks, have taken the oath, TO PROTECT AND DEFEND THE CONSTITUTION OF THE USA … and, by implication, the Republic for which it is the Field Manual.
Thus, every American who has made such a pledge or taken such an oath, is sworn to be a soldier, in one form or another, in the defense of the USA. We are met on a great battle field of that war for our survival.”
I suggest that Congress is a group of politicians, dependent upon the government for salaries and pensions, who “Took the Oath” to protect and defend and have a duty to come through for the USA and its people; most of the people have a similar duty to live up to their oaths and pledges.
Oathers (sic) and Pledgers (sic) could relieve the burden of debt easily by making reasonable VOLUNTARY reductions in their Federal salaries and pensions.
DEAR CONGRESS: SET THE EXAMPLE and ENABLE THE VOLUNTEERS TO ACT where you have been slow and meek. Start the snowball rolling against the NATIONAL DEBT!!!
Next: RE WEALTH [241 words]
A Special Issue, October 19, 2009, FORBES’ “The 400″ listed the 400 richest Billionaire Americans. The numbers were interesting. They were not dollar values of coin and currency stacked in a room; they were estimates of the net worth of each American billionaire. [The list was not exhaustive; there are more than 400 billionaires.]
Net worth is the collection of stocks, bonds, real estate, intellectual properties, etc. which produce income for the owner thereof. Politicians drool when they think of all that “income” for just one person. Income is much less than net worth and, for some of these folks, even the income is too big to use wisely. The animal needs for food, fun and games and shelter are easily met with income. Any excess income goes to the government in taxes, excesses in personal spending, to relatives, lawyers, charities or to further investments (the latter two are worthiest).
The only way to get at the net worth of a citizen is to confiscate it. No one ever
wants that — not even the most rabid “liberal,” “Social” Democrat “Progressives.”
Confiscation is larceny.
Well … there is one way, Voluntary contributions to a ‘Departrment of Money.’ No such department exists in the executive branch, yet. It would include the functions of the dysfunctional Treasury and the mission to reduce and control debt and to accept contributions and process voluntarily offered cuts in Salaries and pensions.
[Mmm thinking] This would be like making the government a charity, which it is. It would require enabling legislation.
Treasuries will come crashing down when the fed raises interest rates. That is the nature of the beast. The markets may beat them to the punch. It would send the economy into a tail spin. There would be few remaining assets worth anything. The federal government in conjunction with the fed have sent us down this path. The to big to fail banks contributed to the downfall to come.
If the bond market does collapse, it will impact the stock market negatively, cause commodities to explode further, and cost Obama his re-election. The economy will land in the dumpster and unemployment will jump further. Fasten your seat belts…
Hi Martin, I would just like to respond to your video and US Bond Ratings of a C. Based on my fundamental, technical and cyclical fact based analysis of the world and US economy, I believe that the US (and possibly a good chunk of world) economy is mirroring the Great Depression or the Japanese economy OR a hybrid of the two. IF this is the case, then, I expect to see the stock & commodity markets correct, similar to 2008 as we come off this bear market “bull rally” from March 09. And, guess where i believe this capital will flow, just like in 2008, thats right, US Treasuries and US Cash. Why? because this is the “perceived flight to safety trade”. Why? because this is EXACTLY what happened during the Great Depression. Scientist and Financier Alfred Lee Loomis and his Brother-in-law Landon Thorne sold their equities in 1929 and invested in Long Term US Treasuries and did extremely well as the Bond Market returned an average of 6.03% during the 1930’s. You could also have done well with Gold (ie. Homestake Mining Going Up). IF we are mirroring the Japanese Market, you know that the Nikkei is down over 75% over 22 years. But, guess what, not if you invested in JGBs over this timeframe. And the story gets even better, by having the equity markets and commodity markets (ex. Gold and maybe Silver etc) get sacrificed either implicitly or explicitly, this will bring down the cost of food/energy and all great for the poor and middle class america and world. Also, it gets better, by having capital flow into the US Treasuries, this will keep interest rates low, also great for residential/commercial real estate and for businesses. Also, better even yet, it takes the pressure off of the Fed to raise interest rates and issue big QE3or 4 or 5…allowing time for the government to get right sized AND allow the private sector to grow us out of this “Great Recession” You see Martin, the EU and the EURO are problems right now. Also, Japan is now even worse off with the natural disaster, China has a big bubble in residential/commercial real estate and of course we have the middle east crisis. So, guess where the intermediate and long term place to invest will be? You got it, the USA, as we will be the first to recover. Remember, the bond market is 2-3x the size of the stock market, so a bond market crash would put the whole world into a depression within weeks, so I don’t see this happening and I dont think the Lord will want this either. To prove my point with FACTS, every time over the last several years the down plunges by over 150 points, the US Treasuries do the best. I see this time and time and time again. And if we get a big correction,(deflation trade) like we did in 2008, this is EXACTLY what I see will happen. This is the best way out of this great recession, unless the lord has a better plan. Thus, as I have said for 18 months now and counting, we will NOT have a bond market crash. However, I would strongly use caution to invest in City/Muni/County/State/Sovereign Bonds of other countries as they are going thru austerity right now and either dont have a printing press AND/Or are not the world’s reserve currency. Martin, I would like to hear your thoughts..Thanks!
guys,
What about the price of gas being just a fall out from our dollars? We’re paying in items (dollars) worth much less than say, two years ago, so why would anyone sell to us at a lower price? What am I missing?
Bonds, will fall; but not until the big players have covered themselves–if they can, since oil is big and they continue to lose as we destroy the ddollar.
Excellent job on the the US rating. It took guts.
My question and observation is the following on the $, Gold and the market.
Gold and the $ look almost the inverse of each other.
Also Gold is some 90% bullish, up against its long term trend line, and up clearly 5 waves.
Silver is far worse.
The dollar is 5.2% bulls, hated all over the world, you can not pick up a article that does not say sell.
Treasuries are stagnant but slightly up from 88 to 94. No clear trend.
The markets are losing momentum but all making new highs? QE? is having a serious impact on Market buying wihout a huge volumes. Mutual Funds have the lowest cash in years if not for all time (weird).
May is here and in my humble opinion it should mean a change in the middle of next week.
A huge spike in Nasdaq volume last week smells like a high to me. When was the last time Volume on Nasdaq Ratio to NYSE volume happen. As I recall 10 years.
S&P is nowhere near its upper trend line from last year. DJIA is approaching the top of that trend line.
Silver and gold are up against there long term trend lines. The $ is breaking or against the bottom lines.
So what does all of this mean?
It means I am going to Churchill Downs bet the ponies, follow the Beyer indexes, chart trends in Jockeys, and the heck with the market. . Have fun guys while I am having lunch in the TURF Club.
I bought TBT too soon. It’s time to feed the dollar bear. UDN or going long in foreign currency is probably the best play.
Seems to me that if bonds fail, hyperinflarion is a real possibility. Afterall, we would be forced to offer stratospheric interest to sell the bonds. That may work short term but when we began to default on the interest payments then bondholders would want assets for principal…unless it occurs with this administration which would promptly tell the bondholders to go pound sand and cheat them like they did GM and Chrysler bondholders.
They have no regard for established obligations or contracts.
What impact will a collapsing bond market have on assets like fixed annuities and life insurance, assets that are invested heavily in bonds, both in this country and the world.? I am an insurance broker and I think this is important for me to understand.
What about T Bills?
Martin thank you for this. Once again you have provided a very useful tool for analyzing markets and considering investments. Some of the ratings surprised me big time. Is there anywhere that you provide a commentary? Canada for example I have read repeatedly has one of the strongest banking systems that needed no bailout to remain in business. Australia was the first country to start raising interest rates after the crash as I recall and I’ve read that they do not allow some types of dangerous deritives to be traded so I assurmed their real debt situation was much stronger than the US. I’ve heard the same relative to banning dangerous derivatives about Germany and NZ. I’d really like to see you address this or read commentary about the rating of each country. Thanks.
I am from Spain so I dont know much about USA economy….but this crisis looks very similar
to the crisis of the seventies….High prices in gold and oil…..problems in developing countries,
at that time was the OPEP and now it looks more in relation with BRIC countries, also in the seventies the great dictators who appear after the 2nd WW all died at the same time (Mao, Franco, Tito, Salazar,Macias….)and democracies were begining to spread all around the world…..
Nowadays, it looks more related with technological changes like internet which is changing the whole concept of international relations and economic trades among countries, what is driving currencies mad.So…the economy of commodities….. Isnt it?
I can’t argue that major corporate bonds are at risk. I saw my GM bonds default and then watched as GM stockholders lost their equity and GM has reissued their stocks leaving their longterm stockholders holding the bag. That is pretty much the exception among the majors. I never held GM stock and now will never buy a GM vehicle. I find that your comments can only find wrong with the administration. So I fear you have a pollitical agenda and play to those of similar views. I am not one of them. The Fed policy has been between a rock and a hard place for some time. The republican policies always escape your criticism and yet as is usually the case their catastrophic policies are the cornerstone of today’s market conditions. I will not bet against America whether ruled by Ds or Rs. I maintain my optimism that current policy walks a tightrope but is lead by experts who have to understand all the alternatives as policy is adjusted. There is more to America than making the rich richer and increasing poverty among the general population. I am ready to short the precious medals and not ready to accept major bond defaulting or junk status for the American economy. If your pessimism proves correct, I choose to go down with the ship.
The fed needs to continue to finance the debt for the obvious reasons. The last time was just prior to the Great Depression and we know how well that worked.
As a retired (retarded) ex bond derivative trader, I saw the US GOVTchange banking laws. A bank did not have to hold 10% in reserve requirement on a risk free loan. The only risk free lending is a US GOVT bond. So basically, banks could borrow money from the fed and lend it back with a 2% difference to their advantage.TO SUM IT UP WE LEND BANKS MONEY AT 3% AND BORROW IT BACK AT 5%.
In the current scenario, when the bond market sours (and it will), many banks will implode again.
Except this time the govt will NOT be able to bail them out.
Feel free to call me anytime.
PIMCO has gotten out of ALL US Treasuries. China is trying to unload 2/3 of its dollar holdings. The Federal Reserve has been printing Benjamins out of this air thus diluting what is in my wallet. checking account, et c. Am I surprised that the price for gasoline, food, and other necessities is going up? Not at all. This is just the beginning. My wife and I have been buying silver coin (pre-1964) and gold coin (pre-1933) not only for the precious metal, but also for the numismatic value. A grade MS-65 coin keeps appreciating in price no matter what the metal does.
Australian media daily ply the Australian public with glowing data of the rising Australian Dollar, albeit against the U.S. Dollar. So, most of my Australian friends are convinced we are very successful economically, believe it or not. So complacency rules and the sly dogs are slinking unfettered. China is currently buying up our assetts, formerly it was investors from the U.K., USA, Europe & Japan. Our Manufacturing Industries migrated to Japan, then to elsewhere in Asia, now they contine to be lost to China, India & cheap labour countries. Our Labour Government is hell bent on being a world leader in Carbon Sales, our energy costs therefore are on a tragectory to the moon. AS WE CONTINUE TO DIG DEEPER FOR OUR RESOURCES, SO TOO WILL WE HAVE TO DIG DEEPER TO PAY FOR THEM. We live in a Fools Paradise.
Van, I believe there is just a bit less than a trillion bucks worth of gold in Ft Knox. Yesterday, I saw a headline that China wants to buy a trillion bucks worth of gold. Are the gold haters in DC preparing a deal that would cancel our indebtednes to China, and avoid Congress having to raise the debt limit? At least until next year? Anything is possible with that bunch of political toadies we call a government. Remember, we put them there. We will deserve the results.
Bernanke’s actions are just a prelude of Germany’s Weimar Republic 1923 moves, with the US dollar on the edge of free fall. This isn’t the first time the US dollar has been under attack. I remember back in 1980 when the world was awash in US dollars. Paul Volker did the unthinkable, he took interest rates to the high teens. Money flowed into the U.S Treasury from abroad. One significant difference. In 1980 the US. was not the massive debtor it is today. If interest rates rose to only 6%, do the math. How are you going to make the interest payments? If you think that monetizing the debt will do the job, you kidding yourselves. Rapidly its becoming time to pay the piper. Recently, we hear some States wanting to issue their own currency, basically refusing to accept their “share” of the national debt. How far will it go is the question. Who will be left holding useless U.S. dollars? With that in mind, expect higher commodity prices expressed already in higher energy prices, and food prices. Commodities are not going up in value. The U.S. dollar is devaluing and you are feelilng the impact. As Obama, Bernanke and the boys continue to tell the world that “a strong U.S. dollar” is their policy, no one believes them. I have one question. If this continues to another “not so great depression” will the U.S. as a single country remain, or will their be States that want to leave?
Dr. Weiss and Team,
Thank you for having the courage to do what is right, as well as it can be done, at this time.
Again thank you.
I see the entire scenario in America as a carefully planned take over and change in our government. This president has shown his true far left, muslim colors so many times. Also, one should read up on George Soros, the man who broke the bank of England and several other countries. He spent millions to get Obama elected and it seems that all that is happening leads to well planned total chaos and the rise of a new order. In Soro’s history of repeated country takeovers in search of an “open government”, a form of international socialism, a shadow government was in place to take over and finalize the agenda. Seems we have a lot of appointed “czars” around these days.
Shadow government? Could be.
The information is all about treasury bonds; what is your opinion
of muni-bonds and how they will be affected in the near future?
If Congress issues the Dollars (according to the constitution) we would not have to pay interest on the national debt. it would go a long way to help balance the budget.
While I agree that many are leaving the bond market for precious metals, real estate, and the stock market. The Fed continues to buy treasuries. The overall market will likely still see increasing interest rates. The bond market sets rates for bonds. As the Fed’s purchases inflate the money supply interest rates are likely to increase. This will actually attract some people into the bond market. Some people will be tempted to sell precious metals, believing it’s better to get the increased interest that bonds will be paying. They will be wrong to leave precious metals since that market will be responding to increased inflation with higher dollar valuations. For wealth protection one needs to own a business that supports needs, and/or some precious metals. I’m out of the bond market and probably going to stay out. The dollar is doomed.
I am a newbie to all this stuff.
In school you would grade me an A in math but a F in World Economics.
My interest never lied in the learning of the dollar, although I do rate myself about a B with interest of other countries, as in History. Okay, so now as I have been reading your emails coming in and watching the videos, I think, ” What in the world does an average Joe, I mean Sue, do with where she is at? Without going into panic mode. Is their a check off list, if you are here…do that, if you are doing this, do that, somewhere? As we all are in different financial positions across the board in America. I look forward to hearing from all of you. MnSue :)
I think investing in fixed index annuities with the largest, most stable life insurance companies is a good way to keep your dollars safe and steadily growing over the long term. I think the dollar will fall in value, but so will every other currency, world-wide; and the dollar will still be the preferred currency, as the world’s economies wither.
Martin ;
I am interested in your view
Nobody,I repeat, Nobody could be so stupid to acidently do to the American economy what Bernanke and Obama are doing. To think this is all happening because they do not know exactly what they are doing is ludicrous. These are very very smart men. It is obvious that they are destroying the American dollar and the American economic power. We all know what they are doing. The real question is why are they doing it.
The answer is to bring a new world order, aka, one world government. There have always been a groupe of people in the world working toward that end. The differenc is that it has always been done with military might in the past. This is something new. World domination is being atempted through the economic manipulation through the power of the computer. Hitler did a pretty good job keeping tabs on what everybody was doing with the Gestapo. Now a one world government can keep up with every dollar someone spends all over the world with the computer.
Our country still has not paid off the debts incurred from our misadventures in SE Asia 40 yrs. ago. Add to that all the Cold War spending, weapons programs, invasion of Grenada, The wars in Central America in the 80’s, invasion of Panama, Gulf War I, Bosnia/Serbia, plus all the billions that have been thrown down the black hole of special ops / CIA, and now our great debacles in the Middle East which has easily cost us taxpayers trillions and counting.
I would appreciate that the next time you talk about how all the entitlement programs are bankrupting our country, and we need to make painful cuts to social programs, you would have the courage to address the elephant in the room, namely our addiction to war.
America will not recover because our industries have left the country. It has become too difficult for corporations to make a profit here for 4 main reasons. 1. High corporate taxes. 2. The high cost of poviding health care. 3. No energy policy. 4. Frivolous law suits.
A few years ago Andrew Liverus, the CEO of Dow Chemical Co. gave these 4 reasons as to why Dow was no longer building any new plants in the US. He said back then they were closing many of their smaller plants and dincontinuing products that had a very marginal profit margin.
How sad. This is the company that envented plastic, the reverse osmosis membrane, magnesium from salt water, saran wrap, and thousands of other chemicals and products. We have a country that is hostle toward industry and then talks about creating jobs out the other side of their mouth.
Ridiculous!!!!
The Dollar is not being trashed. I can buy much more clothing and housing than I could with each dollar than I could a couple of years ago. Last week I bought three Chap Shirts for the price I would have paid for just one two years ago. And day before yesterday I bought a
ten gallon aquarium kit which included an overflow pump at Walmart’s for $29.99. It was
a “rollback” price. I couldn’t believe how Walmart could sell such a nice aquarium kit for such an incredibly low price. You can also buy boats, furniture and thousands of other items on sale now at incredibly low prices. Inflation of certain necessary things is now causing deflation of
non-essential things. Even food prices at restaurants seem to be moderating a slight bit as more and more restaurants offer coupons and special pricing to keep customers coming back even though it would seem that their costs must be rising and they must be experiencing quite a profit squeeze. And every little strip mall you see these days is starting to have vacancies as more and more small businesses close up shop.
If you are only seeing inflation, it is because you are letting your beliefs dictate what you see.
We are having both inflation and deflation at the same time.
I am surprised that anyone who believed that the US has an addiction to war is really a subscriber to the Weiss newsletters. Far from an addiction, the US allows far too many opportunistic countries and NGOs impart negative impacts to our National Interests on a daily basis. But I digress.
The question of the day, what would happen if the Bond and Dollar markets collapse this year and what effect they would have on this country? In short response – Catastrophic. Losing the the dollar as the global reserve currency while our bonds fall to junk and below would prevent us from any rational form recovery. I get pictures in my mind of soup kitchens and people huddling over a fire in a barrel to keep warm, people fighting over scarce food, and a general degradation of our national spirit. Weimar Germany comes to mind.
Potentially our only recourse may be the use of our military to create an empire out of North America and take advantage of the natural resources to help build ourselves back up. We won’t be able to expand beyond that as Russia will have already have gobbled up Europe, China will have taken over Asia as well as New Zealand, Australia as well as all surrounding countries (Singapore, Thailand, etc). The Middle East will erupt into Nuclear Warfare that may or may not draw in the rest of the world. It would be difficult to not see North Korea use their Nukes on South Korea once the American Umbrella is folded up in tatters.
Our nuclear arsenal which Mr. Obama is working diligently to do away with, may in the end be our only saving grace. Lack of willingness to use them may be our utter downfall in the war (which will remain unabated from the other side) with the Islamic Terror Organizations.
God save us. We will mostly likely not have the will to do so ourselves.
help
T he Bible states that All mans assets will go to nil in an hour gold and silver will be tossed into the streets .One would have to say why would this happen ?To some the Earth is over populated and what better way to depopulate the planet by putting the human race at odds with each other.Wars and rumors of wars,This depression and all others have been designed by the world power elites. Food is another key factor we soon will see less of it due to the powers controlling even the seeds.The end result is starvation depopulation .The world is so corrupt that it boggles the mind wall street awash with drug money.Wars fought for this drug properties .If i had to tell some one to invest i would tell them to invest in there soul find God before God finds them! GOOD LUCK MAY 21 st 2011 maybe the day S . BAILEY
No one could have imagined,before the financial meltdown of 2008,the level of govt involvement in the economy.I don’t think there are any limits on what govt will do to keep the illusion of a prosperous American going.In fact,the worth of our Dollar and Dollar promises(bonds) depends on govt keeping an image of America being this great world power.I expect all kinds of govt actions in the future that will likely just postpone the inevitable.So,I expect the country to continue declining, and this decline will show itself as either rising prices,declining incomes or probably some mix of the two.Govt will do price controls,rationing,higher taxes on “evil” non-deserving rich,corporate taxes,etc.None of these actions will work,long term,but should keep the Titanic from totally sinking some years longer.
Between the Fed and Treasury the pig has lipstick on for now. Come July 2011 is when the fireworks will start. The poor investors who bought bonds and T-bills for security now hold toxic investments.
With well over half the states are looking to default on muni’s , slash budgets and layoff state employees through the end of 2011 and into 2012 which doesn’t bode well for the middleclass or public pension funds.
The true irony is that large cap equities will be on bull run into 2012 because of the emerging markets growth and US corporations funding and investing in those markets. Corporate earnings will continue to be spectacular and the older investors will not touch equities. 2008 is still on their minds.
Tell Mr. Weiss to keep it up between his national rating system and the tea party movement we could have roast pig 2012.
The retired and soon to be retired will be taking the bullet.
Bankruptcy and foreclosures will be the order of the day.
Your ratings are on the money at this point in time.
If our leaders do not address our deficit with both short term and long term plans the ratings will need to be lowered.
You have sent a strong message to the market and to Washington. Now all any of us can do is hope and pray Washington will have to courage to correct the problem.
Eventually an oil disruption in the Middle East may impact the market negatively. The world economies and markets will have to deal with that.
Rating sovereign debt is a superior concept and I thank you for your initiative. You cite the other rating agencies as “less than objective.” yet how can your subscribers evaluate your sovereign debt ratings as objective if you don’t reveal the factors or elements that contribute to the ratings? You need not reveal how you combine the elements to produce each rating, but to be fair and open we subscribers should know the factors you use. Otherwise, the ratings may be considered suspect, just as the other rating agencies grades are suspect by those who think for themselves.
how do i read the answers to the questions
Dear Dr. Weiss,
After sustaining significant losses during the tech crash years ago, I have become very conservative in my investment strategies. I follow your “Mr. Conservative” in your Safe Money newsletter and have much of my savings in short-term treasuries. What is the implication for these treasuries if the bond market collapes? Is there a safe route to consider now instead? Thank you.
After sustaining significant losses during the tech crash years ago, I have become very conservative in my investment strategies. I follow your “Mr. Conservative” in your Safe Money newsletter and have much of my savings in short-trerm treasuries. What is the implication for these treasuries if the bond market collapses? Is there a safer route to consider now instead? Thank you.
Dear Martin- I have never left a comment in a public domain such as this. I feel compelled to share my opinion.
In a discussion with my CPA a few weeks back, I asked him what he thought about the US economy and where it was headed. His answer: “It is not sustainable.”
I have always been an advocate of common sense. I have been observing a small percentage of our population greedily looting the middle class (what is left of it). I am watching our governments spending binges while we have the biggest deficit in history. The Fed is launching us into inflation orbit by printing more and more money as the dollar rapidly devalues. I am seeing the US involved in wars cropping up around the world that Congress had absolutely no say in. Our obsession with oil is killing the Gulf of Mexico along with inhabitants of bordering lands. It has lead to the unbelievable practice of fracking, which is contaminating ground water and the lives of too many Americans. As I look at all these events and too many more to mention here,
I can make no sense of them. Not good sense.
I appreciate your investment savy and have profited from your advice. You are being easy with your C rating. I, and I am sure a lot of others, are taking advantage of the positive aspects of the market right now. With the inevitable correction (if you could term it that) which will come, no one wants to be caught holding the bag.
I have my own strategies in place. But without getting opinions from learned people such as yourself, it would not be possible to develop successful long term planning.
With historic challenges facing us, historic opportunities will also become available. Unfortunately many of those opportunities will come at a high human cost.
Dr. Weiss: If your Canada rating is only removed one notch above your US rating, and the US is in dire (apocalyptic) straits, it is just as well that the Canadian conservative party (which has been boasting of its economic sagesse) is having a hard time in the pre-election period.
You guys have been calling for a bond market crash for a long time. I don’t think it’s going to happen. As a country with so much income we can take the hit for as long as it takes to bring finances back into line. I do think that more can be done to move this problem to the background and it is a problem. We, as a county are between a rock and a hard place but are, contrary to what you expect, to big to fail. I think Obama is the wrong guy for the job. We need to get it right next time. Obama is as good as gone. He now doesn’t have time to turn this thing around before the election. It can be turned around with the right president. You are right that a bond market crash would devistate our economy but I don’t see it happening unless we make another mistake in next years election. Incidently, your C grade would carry more weight if the rest of the world was in better shape. I think a C grade is probably about right but from C to F is a long way. If we are grading on the curve, a C grade would equal a grade B. It’s a tuff world economy right now and will probably remain so for at least the next few years. when the real estate bubble problem is solved we should return to some degree of normal.
I hope I am not wrong.
Dave B
Martin and Mike,
If the bond market crashes as you suggest, what will be the impact on my fixed indexed annuity (FIA) with an insurance company like American Equity based on Des Moines, Iowa (not American Equity of New York)? The annuity is guaranteed by the insurance company but the guaranteed payout is only as good as the financial stability of the insurance company. Before I put $100,000 into my annuity and another $100,000 into my wife’s FIA, I need to know that a company like American Equity will be able to make its guaranteed payouts to me 20-25 years from now. As you know, consumers are buying billions of dollars in annuities and they are fleeing from stocks to annuities because of the protection of principal and guaranteed lifetime income they offer. I’m sure you are also aware that American Equity is one of the top selling annuity companies in the U.S. Insurance companies take the money they receive on their annuity products and invest a significant amount of it in government bonds and other bonds, the bonds you predict will crash. There are millions of American Equity customers, and those of other annuity companies, who need your answer to this question, including my wife and I. We are depending on you for a quick response, and a thorough, dependable one, as is your pledge and your trademark. Thank you and God bless you!
A few tidbits from a Washington DC suburb
From my local farmer’s market:
The quiche I have buying for 10.50 for 3 years is now 12.50.
The strawberries that were 4.00 a quart last year are 4.00 a pint this year.
Most disturbing is not the price rises – which are every where but this-
Twice, after dark and in the same parking lot, I have had gasoline syphoned from my tank in a parking lot. This is a very safe area, and I have never heard of any crime in this small shopping area before.
So my gas is costing me even more than it does at the pump (over $4 a gallon) because I don’t always get to use it all.
Anne
A few tidbits from a Washington DC suburb
From my local farmer’s market:
The quiche I have buying for 10.50 for 3 years is now 12.50.
The strawberries that were 4.00 a quart last year are 4.00 a pint this year.
Most disturbing is not the price rises – which are every where but this-
Twice, after dark and in the same parking lot, I have had gasoline syphoned from my tank. This is a very safe area, and I have never heard of any crime in this small shopping area before.
So my gas is costing me even more than it does at the pump (over $4 a gallon) because I don’t always get to use it all.
Anne
So are we in the end of America or should we be at the end of democratic idiocy.
I mean it’s not a perfect system but when people can make big bucks on gambilling their billions to set up an economic growth for the little man to work , eat, buy and consume oh yes and don’t forget and to be taxed by his government because he can’t afford to fight his governmenton tax issues you have what is known as the republicans runnibg the show. Now you think I’m wrong ? How did china grow economically so quickly. They placed a call to all the super wealthy. No income tax for you just our workers. Twenty years later you have an economy that will take the #1 spot in the next 5 yrs. Oh for the years of Reagonomics. The first three yrs. were touch from 82-85 but after that it was all prosperity until the democrats started fooling around. Now we have this.
We ought to elect Trump and Clint Eastwood and really take over. Go tea party
My only concern is whether your rating could be the domino. It is a lot of responsibility, but I totally understand why it had to be done. Toni
Steve
I like you am one of those “RETARTED” guys. I have Charted the Stock Market and Treasuries during my career and use the Elliott Wave Counts. So I am very RETARTED and WARPED. As I see it the Bond market is in a short term correction and then will resume to the downside in a huge way. Even QE5 is not going to save it as I see it. I also a total fall of the BANKS in 2012 at the latest. But as a retired RIA I am extremely warped. I also see when Dood Frank goes into full effect and FINRA begins to oversee the RIAs many of those guys will fail. Their current COMPLIANCE rules are a joke compared to the Brokerage side.
Larry
Dale Blome,
I am going to make a leap here and assume that George,Thomas, Ben,Alexander, John
and their associates would cringe at us pledging loyalty to the bunch of rogues that are
holding office hiding behind the flag and would rather have us place our loyalty behind
common sense or uncommon wisdom if you will and do what we can to protect ourselves.
If producers for the most part have decided long ago to invest overseas in order to
compete and survive. It is axiomatic that the investor and consumer will follow. The U.S has
sunk its own ship and is submerging in an ocean of debt overburdensome taxation and interest. I believe it is only the captain who is called upon to go down with the ship !
Thanks for your rating which I believe should be our “WAKE UP” call to review the nature, essence and practice of the concept of a free maket economy. Rather than throw our hands in despair we should ask ourselves how we got here. America has become a consumer nation. I acknowledge the Enterpreneurial and creative spirit of an average American to design and invent new products and ideas but unfortunately these are shipped to China or Asia for production because of cheap labor. Products created from America are then exported back to America (result = negative trade balance china). Unfortunately, most of these products are country specific and hence have no resale values to other countries.
Why did the Auto Industries survive after the government bailout and the Electronic industries in America are collapsing? Both industries benefit from the creativity of the American Enterpreneurs, however the auto products are standardised and exportable to other countries from the US, electronics designed in the US but manufactured in Asia are imported with a country specific voltage of 110Volts and thereby limiting their exports out of America to other countries. Little wonder most electronic companies like Circuit city and others collapsed.
What I have highlighted above can be considered as insignificant but let us consider the multiplier impact of Job creation and taxation in Asia, Job losses and dependence on Social Security benefits and no taxation in America, depletion of the country’s reserve through negative balance of trade and payment across major industries. Walmart, manufactures most its products in Asia and imports them to America bcos it is cheaper to do so. The country is now a consumer nation. We must as a people and a nation do a thorough review of our practice of Capitalism and match this with our patriotism. Why must we go to war for Oil that we ultimately have to import when we are an oil rich nation. Our economy is collapsing and we are talking about maintaining strategic reserves when we should reduce importation (staunch depletion of our reserve) and produce from what we have for domestic consumption, export and stimulate employment. Why the reserve when the government is funding research in alternative sources of energy. The Auto industries are producing Hybrid and Electric cars.
We have the human and natural resources, we also have the capacity to ensure that Capitalism is not practiced to the detriment of the overall survival of our nation. It is our collective responsibilities as citizens of this country and not that of the policy makers alone. A PARASITE MUST ALWAYS ENSURE THE SURVIVAL OF ITS HOST.
There is no ifs, when the bond market colapses it will change our nation and the world as we know it.
The question I have is a little off base from the Weiss “country” ratings. I was wondering if you could tell me what the ratings are on the state of West Virginia? When Gov.Mansion now Sen. Mansion left the Statehouse we were all under the impression he left the state in good shape. But now I see you name West Virginia as one of the states in trouble and I was wondering what the problems are in our state? Thanks, Lee Dowdy
Martin and Mike, I would give it a little longer than 8 months. Yet, I believe the U.S. dollar will continue to tank. It is now at about 73.0, and has gone down recently almost in a straight line (or actually diagonal). I just don’t see any fundamentals supporting the dollar anymore. We are in a time where precious metals keep making advances. It is a strange time we live in. I wish I could comment specifically on a potential bond collapse, but, to be honest, I just don’t know enough about that subject and its interconnections. However, I have a few questions for you guys. If our foreign creditors jump ship because they just can’t take the dollar’s devaluation anymore, and our dollar tanks even more quickly, and maybe loses its reserve currency status, how would people survive? What would daily life in America look like? Would people barter, and exchange their skills and abilities? Would it be good to hold some Canadian dollars, and Mexican pesos? I wonder what other forms of exchange might be accepted and used? And if banks fail big-time, how would one access investments and utilize them, especially American company investments or ETFs that are loaded up with American companies? Please share your thoughts. You have been so helpful to us. Thank you so much.
I’m glad I’m as old as I am. My sympathies lie with the young folks who must face the consequences of the last hundred or more years of empire building by a relatively small number of super rich families. We’re watching what is possibly the final hand of the push for one world government; the attempt to do by economical coercion what has never been accomplished by military might. The bond market may or may not crash, depending on rather or not a crash is deemed necessary. (unless they lose control of this monstrsity they’re attempting) Either way this thing plays out, millions of people are going to be badly hurt, and our civilization will likely be set back hundreds or even thousands of years. What we are facing are the empowered effects of basic human nature in it’s vilest form. Greed, avarice and an insatiable lust for power. Since a guess is all any of us is capable of, I will venture to guess that their efforts will fail, but sadly, to the detriment of all mankind. There is always hope that enough people will wake up to the danger the world is facing and demand that we return to a world of just and reasonable government controlled by just and reasonable laws. We already have the blueprint, it is called the U.S. constitution.
I agree with those who say the “C” rating is too kind. America is deliberately being dismantled piece by piece. Bridges & highways — paid for by citizens’ taxes — sold off to the highest foreign bidders; erosion of Constitutional rights; lack of accountability at the highest levels (a Nation of Laws, my arse!); a congressional body that rubber stamps anti-human legislation; an FDA that’s become a criminal organization; the destruction of the middle class; and it follows, the dollar being removed as oil’s reserve currency.
Along with these deaths by a thousand cuts, the demise of the dollar is key to the plan for One World Government. How else to destroy the one country that is (or used to be) a unique democratic republic and could prove to be a roadblock to the globalist crowd? Thus, they can usher in a new currency. On every level, our country’s in pitiful shape. Those of us old enough to remember and compare times & attitudes can testify to this. I use shadowstats.com to see the real & true statistics of what’s going on economically. You seriously don’t believe the government, do you? Bernanke & Summers and Geithner?! Good puppets. Following their scripts.
The U.S. gets a D- from me with the F not far behind.
To: jrj90620
Your words have no meaning unless you identify yourself!
Coward.
Hi Martin & Mike:
I enjoy your articles tremendously. They are very insightful, with a thorough explanation of economic principles. Yet, I would like a better understanding of the machinations of the bond market in order to surmise on how the collapse of the US Bond Market would impact all of us. Could this all be a ploy by the United States and other governments, clandestinely allowing the US dollar to drop in value to finally force China to revalue its Yuan? What would happen to the world’s economy if China were to properly value its currency? How would the rest of the worlds economy be impacted.
There is a lot of the bond market that I do not understand. How are interest rates determined, cover ratios, and exactly the chain of the money. How is that money imployed into the broader economy when an entity issues bonds? It would be nice if you both would give some sort of expose on this subject, I know that I would love to see it.
Accelerating interest rates would wipe out many small businesses and independent banks, ruin all who have variable rate mortgages, and trigger hyper-inflation. It was difficult for Germany to live through hyper-inflation. There is a danger it would stop commercial activity in the U.S., causing food shortgages and starvation, potential collapse of utilities and consequent destruction of civil society. The danger of advanced civilization is that it becomes only a stone’s throw away from the stone age, through interruption of the food supply chain and the heat and electricity that is at the core of economies. Marshall law ensues.
Mike: Thank you and Weiss Research for the boldness to speak the truth. The Mental Midgets we have in Washington,just horrify me with what they are doing with our lives. Keep speaking out for us little people. Thanks again.
The international elite, owing allegiance to no one nation, always act in their own self interests. Currently there is a massive shift in wealth from West to East. As the West continues its decline (cyclical some say) the East grows in power. As the rats have gnawed away quietly and unseen for decades, devouring (absorbing) the wealth of America, the middle class has eroded, and a huge underclass has arisen, fully dependent on government handouts for survival.
The average person is clueless as to what is happening–having been brainwashed from infancy to “buy into” certain beliefs and mind-sets that were put into place to protect the hidden overlords and their nefarious actions. It’s as if the common man walks around in a stupor, blinded to “reality” as sugar, caffeine, alcohol, and narcotics keep him in a mental haze.
The never-ending glittering media stream we call entertainment and news also dulls his mental faculties as it subtly feeds him subconscious messages to serve the purpose of the elites, unbeknownst to the clueless mind-numbed and passive participant.
Has anyone ever considered that all the investment services are NOT excluded from the media stream that bombards the mind with subtle or overt impressions, thus influencing your thinking in whichever ways they so choose? And, by influencing your thinking,they influence your actions. Those actions, if followed by a large enough contingent, inevitably have broad consequences.
In Rome it was the “bread and the games” which pacified the masses. But, that can only go on so long before the government creaks and collapses under the burden, as revenues sharply decline concomitantly.
The internationalist will continue to find ways to wring any remaining wealth out of America–their goal is to suck it dry. Somehow, someway they will steal the value of all you have or transfer it to themselves as you stand helplessly by.
Once the nation is sucked totally dry, the rats will then jump from the sinking ship (as they always have historically) and physically relocate to the abode of their next “victim” (country or region). Internationalists can easily do this. What passes today for “American” corporations are often international conglomerates with little or no concern for America or its people, but only for their own profits and power.
When all paper instruments become worthless as toilet tissue, you will awaken to what happened–but only after the fact. By that time the internationalists will have robbed you blind, totally bankrupted the nation, and jumped ship with the loot in tow. They will then use the stolen loot to build up whichever country or region they have chosen for their next commercial empire.
Why is this so? Mankind, from the beginning, or the “masses” we should say, have served their overlords. It is only in recent times that a so-called middle class has enjoyed some privileges formerly reserved only for the masters. This is an anomaly when looked at from the broad view of all of human history. That anomaly will now be erased, as the “natural order” (as dictated by the powers that be) is restored, and the “masses” (like so much cattle) once again become the servants they were created to be.
Dave B:
IT DOES NOT MATTER WHAT PERSON IS PRESIDENT OR WHAT PARTY HOLDS THAT OFFICE. IT DOES NOT MATTER! Democrats & Republicans alike will continue the policies you see right now. This is why nothing changes! The Fed will deliberately continue to print gobs of fiat money — and hyperinflation will be the result. “They” seem to be using the Nazi model… the same things are in place as during the Weimar Republic in the lead-up to WWII. Think this through. Try to set aside pre-conceived noti0ns of what it’s supposed to be like and instead, use your imagine.
People seem to think that all the financial gurus of Greece, Iceland, Ireland, Spain, etc., etc., were (are) incompetent. No, that’s not the case. How could so many financial professionals make so many devastating decisions? Answer: they know exactly what they are doing. THIS IS DELIBERATE. Conditions are purposely being created to bring the global financial world to its knees. There’s an agenda… it’s is a plan. Can you see it unfolding yet? Try to see all world events through the lens of One World Government. Whether there’s a terrorist event on the Red Sea or another genetic food espoused by Monsanto, see it as part of the bigger picture. When you experience that epiphany, everything becomes clearer. Collectivist government. Control in the hands of a few. Our food supplies in the hands of Cargill, Monsanto. View today’s events with this end scenario in mind.
Sorry to ring in the death knell, but very few would listen when this terrifying future scenario was laid at their feet. I’m making my money now and buying necessities as quickly as I can. I suggest you start storing food. By 2016 or so? It’ll be a done deal. It’s got too much impetus now to be stopped. This is what the demise of the dollar is about. Get a new view of history.
All this worry about the dollar as the world’s currency reserve… it’s already a fait accompli. Start preparing defenses for yourself and your family. American politicians rant about oil and its accompanying problems… they lament that we can’t get off oil dependency. But an unknown fact to most Americans is that the U.S. sits on the largest oil field in its history: the Bakken Oil Field under the Dakotas, Minnesota & Montana. Do we work it? Do we set up drilling? Hell, no, we’d rather watch BP cause a catastrophic oil spill in the Caribbean. This makes no sense. We don’t need to drill offshore when we have a Bakken oil field. But we continue to do so anyway. What’s this about?! Why aren’t the politicians talking about this? Oh, I know… they’re almost all getting “contributions from oil PACs.
The dollar’s downfall isn’t going to change. It’s going to gain momentum. “They” need America out of the picture. Like the biblical Samson, we’ve got to be emasculated by having our hair cut. Nothing’s going to change back to what it once was.
All US citizens, the very rich, and especially, those making over fifty thousand ayear should
pay income tax. Millionaires, and multi- millionaires and billion aires who claim nothing or
practically nothing because of using the money they need from the company, etc. expenses
they own, partying, etc. They pay little since they can hire accountants who know!!! Yes, know
how to play the use of using dollars to write off their huge salaries. Yes, some deserve their high
salaries, but with that should come paying higher taxes!!
I think when the crash comes the dollar will go up and be a safe haven for those smart enough to have American CASH which will be KING.
Wow. Very astute, if not scarily ominous, observation of what, realistically, is going to be our future. And without political or religious orientation, which is a nice change of pace-thank you!
I am a bit concerned. afew years ago ai bought 30k worth of silver from between 12 and 16 aqn ounce, a little more at 30 and now have about 170k in cash. I am a little scared to buy more silver, and have bought and sold recently a couple of houses.
Is it smarter to buy more real estate, the rental variety, in an area that is not hard pressed like Oklahoma or go another direction.? I just dont want to get screwed when this financial catastrope breaks wide open.
If the US bond market collapses, the world will be in the worst economic mess ever. This government has brought this on themselves by attacking wealth formation. A nation without wealthy people is simply poor and we are well on our way to bankruptcy
Dr. Weiss:
I positively believe that should the bond market crash, that it will badly hurt this country, investors, pension funds, banks and private individuals. Huge investments, like this, that go belly up hurts the economy, causes monetary distress and will end up hurting the national debt.
The feds are killing this country and our monetary system with the interest rates way too low. The feds interest rate should be between 7 1/2 to 8 percent, which would help build up the retirement pensions, individuals savings, help strengthen the dollar and will put more spending money into individuals pockets who save, thereby, improving the economy.
I believe that we a huge national debt of at least 15 trillion dollars, and a declining dollar because the Federal Reserve Bank keeps print billion of dollars continually to pay off debts which
cannot be covered by fiat currency, plus the fact that our Congress refuses to even audit the
Fed and will not consider bringing it under control or abolisihing it, our economy will within a
very few years be destroyed and banckrupt. I believe that Dr. Martin Weiss gave the USA gave
our nation a very fair economic rateing. If our government does not adress this problem
promptyly we will only have a great depression and the colspse of the dollar. I only wish that
Dr. Martin Weiss could replace Ben Bernikie, or be named Secretary of the Treasuery.
This is frightening! What should I do to protect my family wealth?
ABE — April 30, 2011
Excellent comments! You must educate yourself by reading some of the same stuff that I do. Only wish I could communicate the urgency to others, but people don’t always want to listen. In fact, only a small percentage do. It requires using a crowbar to one’s brain and a new way of interpreting the world. I feel that we’re powerless to stop this huge machine of powerful, wealthy collectivists. My eyes were opened too late.
Abe, the nation is already sucked totally dry, and the rats (China, Japan, st. al., have already begun jumping the ship by refusing to buy any more of our wonderful T=Bills. The illusion of health is maintained only so long as the Fed buys back the bonds, once they stop we will surely see a RAPID decline in everything we hold dear and sacred.
Stock Food, Water, and Ammunition as Gold and Silver may be hard to spend, and, will attract the worst of us who will look to take it from you. Unless you have a LOT of it like George Soros does. A few ounces here or there will be useless.
Food, Water, Ammunition – not necessarily in that order.
It is already to late to avoid the pain. Only question is whether or not the Fed will begin QE3 fast enough before the country collapses at the end of QE2
What I can’t stop thinking is, how did the Inca’s foresee this so many years ago?! Spooky if you ask me.
As the US currency crisis unfolds, we will perhaps be faced with the same choice that Germany had between the world wars. This choice is: either starve to death and let our children go without even basic necessities – or – start a war to revive the economy and take the resources of others.
We will all say that the second choice is unthinkable, but it will be the obvious choice when the terrible reality sets in. This will be America’s way back to greatness, but the times will not be easy.
Get ready for a future that will shock even us Weiss readers!
If the U. S. dollar loses its status as world reserve currency who will become the replacement.
If this does occur the dollar becomes worthless and cause a terrible debacle. Tell me what to do.
Thanks, Al Russo
I have a lot of corporate bonds maturing in 5 – 10 years (a )rating or above—how will this dollar plunge affect them. Should i have 25% of portfolio in gold? Silver looks due for correction.
Martin, Having lived a long time (79) as you have, but having no particular expertise, I am of the opinion that you may not be tough enough on rating Uncle Sam; however, we do have a large economy and IF we stop shooting ourselves in the feet and we (Congress and the Executive Branch) get serious about doing what needs to be done, our economy could rebound relatively quickly. One of the problems, as I see it, is that the greedy people in finance, industry and the government need to be given a lesson in humility.
There has to be selected judicial and prosecutorial authority to put some of the obvious offenders in jail with serious fines. That is the reason a dedicated US Attorney (like Elliot Spitzer)is no longer the Governor of New York. Many people realized that they might be one of his next victims.
I remember my Grandmother telling me that the Federal Reserve System was a mistake when it was created.
Sorry to ramble on, but it is very depressing to what this country is becoming. You and your staff are one of the few breaths of fresh air.
Dear Dr. Weiss, and Mr. Larson:
Just read some of the comments made about the “upcoming implossion” of Bonds and Treasuries and the possiblity that investors that hold them, wills suddenly swamp the market with them…
Wish to make an Analogy: if I am wrong, please tell me.
In my old country, the owners of the huge Sugar Mills used to have a saying: If you owe the bank 25 /30% of your Assets, you owe serious money to the bank. But, if you owe them, much more than that, then the Bank is you Partner…
Therefore, if all investors get rid of all their Bonds and Treasuries, they will shoot themselves in the foot because the will quickly become “worthless”! What do you folks think?
With my utmost admiration for your work,
VT
The U.S. government to much to smart to trash the currency , they will come up with a plan that will show a stable currency that will be acceptable to most of the population but all they will be doing is buying time till they dump the problem on others !
The first move should be to get the current ass hole out of the White House, one way or another, ASAP.
It’s obviousa that he doesn’t know anything about about managing the affairs of a free government, and is constantly embarrassing us, to the world.
How the hell did he get there?
Second move would be to put a consevative, hopefully a Republican in his place., to, bring some cool thinking and preserve whatever support we have with our current and former friendly nations.
Although there is a need for us to act gentlemanly, we do have to stand tough, against those who try to push us back.
We have to remember what this nation represented in the world of many nations, and get that position back.
wally househr as so much right. But what is necessary to save Capitalism from the internal contradiction Marx described is the whole of Keynes Theory. Deficit spending to get out of a Depression has to be enabled by higher Taxes when things are going well. They didn’t make those Taxes but continued Deficit Spending to prevent a Market Correction in late 1980s, Monetarist Cowards fled the field of battle when the big guns on their own side opened up. Inflation is now built into into the system and will destroy the lifeblood of Capitalism with hyperinflation,
The problem can easily be put right by a progressive tax on wealth sufficient to clear the National Debts. Those who have speculated to drive up prices have made the rod for their own backs. Their gains will have to be taken from them or Capitalism will collapse with Hyperinflation. The stupid Rich have bought stupid Politicians so that is unlikely to happen.
Al Russo asks what to do. That is pretty easy too, Co-operate with your neighbours to grow enough food to feed your community, see to it that no one starves or freezes, and that everyone has the education they merit.
The interest on the federal debt forces the Feds to keep the bond rates low, by whatever means. Thus the resulting dumping of the US bond holdings and cash reserves (of foreign banks) will continue to drive inflation up and dollar down. Gradually the resulting runaway inflation in the US will wipe out the dismal savings and force us to sell the remaining real assets to foreign investors to raise real money. Furthermore, as long as the consumer favors imports the current account deficits will continue feeding into the problem of the capital accounts surpluses by selling the rest of what we hold dear to others. One could see this as selling away our independence. As long as we keep on spending more than we make we keep on sinking deeper regardless of what the Feds do. We’ll end up like GB, Italy, Spain, Portugal, etc. in the 1970’s. Back then they all had weak currencies and not surprisingly the same countries have this public spending problem = public debt problem.
No need to sugarcoat this for any longer: as long as the manufacturing sector has been outsourced to elsewhere due to whatever reason we have increasingly become an exporter of raw materials. And this has been going on for at least 40 years. Combined with the desperate maneuvers of the Feds (financing long term debt with short term debt) there is no way out. The government is too big and can not bail us out any more. Unless, we do the following…
1. We start buying domestic products & services and we introduce tariffs that favors this
2. We and the Feds alike balance out whatever budgets we have
3. The members of Congress are required to have a background in economics and business. This country should be run like a business organization.
4. All our kids are told/shown that math and the hard sciences are cool to study.
5. We wake up and realize that we all can turn dreams into reality.
6. We give up on expecting the government to bail us out and immediately cap the size of the government to a percentage of GDP (to prevent a government takeover of the economy).
7. We flatten the tax code immediately. Get rid of the loopholes and introduce a flat tax.
8. The health care “problem” will go away by mandating physical exercise for us all.
Only after we do all this, can we start making real money and allure businesses back here.
After reading the above commentaries, I’m convinced that none of the authors have a handle on how to deal with the current crisis. I’m in the same boat; but at least I can offer a few suggestions.
First, limit the amount you invest in any of the markets to the point where you can walk away without being forced to alter your life-style.
Second, once you do carefully choose your investments, be prepared for a rocky ride. Unless there is a material change in the structure of your holdings, hold tight. What was good at 50 is even better at 45. Look at the last two major collapses: 1987, when the recovery was just as sharp as the fall, then went on to new heights: and 2008, when the same thing occured. I got caught in ‘87 because I was a novice with a nervous broker who scared the hell out of me; but the experience was not a complete loss. The lesson I learned stood me in good stead in ‘08: I didn’t lose a farthing. I guess I have ice in my blood by now.
Marty,
I recently came across a comparative graph of how fast the US economy had revovered from recessions of the 1970’s, 1981, 1990, 2000 and 2008. Each time it has taken a little bit longer. This time it has taken more than three years and has not recovered to the same economic activity levels we had prior to the recession. In fact, the economy has now settled to a lower gear just like it did in 1930’s! The same graph had the federal debt, current account deficits (as a percentage of GDP) and the domestic manufacturing activity all in one graph. What a revelation!
This time there is no way out unless we’ll do something real. We should start buying domestic and live within our own means.
I agree with you Mike, the US still has the best economic system in the world because underlying it are a free people who are creative, innovative, experimental and not as hindered by social rigidity. I am born American and have lived a portion of my life abroad, 16 years in Europe, 8 years in Japan 40 years in the US mainly in the San Francisco Bay Area, a long time in Silicon Valley. In Europe from 1970 to 75, the headlines were: “Gold rising”, “Us dollar declining severely by 40%” and all of the European socialist papers heralding the end of the “Great Imperialist Capitalist Yankee Empire”. Ha, ha, ha in retrospect, the majority there really believed this at the time. Then in Japan from 1978 to 1986, the headlines on the front page were: “Japan As Number One?” Notice that Japan’s most conservative Party is the LDP, the Liberal Democratic Party close to 50% followed by the Socialist Party 25%, various other religious parties and other right wing parties 20% and then the Communist Party 5%. Yet they are Capitalists and it works because they are united to assist each other, are very thrifty, efficient, honest and free citizens. They are 200% of their GDP in debt while we the USA are 100% of GDP in debt. Japan’s credit is high though their rating has been questioned as ours has been lately, but their credibility is high because they always manage to be on time with their payments and.. the Yen keeps valuing upwards no matter how much they print because their government invests well in a very diversified portfolio to subsidize Social Security, Education, National Health Insurance, etc.. But “Number One Never Happened” as we know in retrospect!
“China as Number One?” The Chinese are efficient, thrifty, proud, nationalistic, hungry, poor, repressed, prone to riots (50,000 per year) , 10% in the Middle class, 5% or 60 million communist party members, 95% or 130,000,000,000 0r 1.3 billion are not allowed any affiliation. Freedom is the elephant and government is the dragon in the room. Their money is arbitrarily pegged a value, they arbitrarily have devalued the yuan 400% over the last 30 years, it does not float on foreign exchanges, the Chinese government has been known to renege on foreign loans or to reschedule the terms to their favor so no one wants to be paid in Australia, Brazil, Europe, America in Chinese Yuan.
How about Government Bonds, well the world’s banks loves buying US bonds to stabilize their own. And sometimes they reluctantly have to sell them because their creditors want to be paid in US dollars and increasingly in Canadian, Australian, European currencies.
Here in the Bay Area, things are picking up, we are even seeing manufacturing coming back because locally we can produce very advanced products at greater quality and deliver on time with a competitive price that beats the prices within the Chinese market. We still have the edge in innovation and freedom. We need to get the whole USA moving in this direction an I believe we will. I am a little amused at some of these apocalyptic economic visions, all this is playing with people’s perception and yes you can deceive them and take them for a ride for a while, gold gets dug up, goes sky high, ends up in expensive vaults, back in the ground, crashes eventually. Now I would not say the same about tungsten, vanadium, rhenium, molybdenum, copper, cobalt, uranium.
Value points to the USA.
Martin,
I think you have not been tough enough on Uncle Sam. It’s time to name names and get out the pitchforks and torches. A crash in the bond market would be catastrophic for the US economy. The result would inevitably be a total default sending the dollar to $0. What the $%(^%#$% is going on with Obama, Geitner and Bernanke??? Thes guys are smart enough to know what the end game is. Are they that bitter at the this country that they will wreck it to get their way?
Scott Badtke: You might find it intersting to hear what happened Ca. 1980/1. Long term bond funds crashed as Volker pushed interest rates up to quash inflation. Some very smart people kept in cash as interst rates rose. (Not I; I didn’t have anything to invest then.) Then, when they thought interest rates had peaked, they got into long term bond funds. At that point they bought in at a huge discount (very low share prices) that locked in the high rate of interest, relative to what they paid. Not only did they get effectively a high rate of interest, but as interest rates dropped, the price of the funds recovered much of what they lost. So, in addition, they got a large capital gain on their share prices. Needless to say, these situations do not present themselves very often.
If the US Treasury bond markets collapse, then the Fed would be forced to raise interest rates to entice buyers back. This would mark the beginning of increasing credit tightening and the start of the double-dip recession that our politicians dread. Actually, it would be a scenario similar to the Stagflation of the late 70’s, when we experienced high inflation and high interest rates. What will be worse this time is that higher interest rates will not mitigate the current inflation caused by our sinking US Dollar.
If Greek defaults that will raise the alarm on many EU bonds issued by marginal countries like Portugal, Ireland, Spain and Italy. This will raise the suspicion on French and Japanese bonds and then finally US Treasuries – especially long-dated ones as inflation ratchets up in the US. Then the US will experience higher borrowing costs and lower bond prices. Also, as the news or rumours spread that treasury auctions are dominated by Fed purchases the yields will rise fast as people get the smell that there is no other choice for the Fed but to monetize debt.
It is vicious spiral down the hyperinflation lane for the US, and for that matter other developed nations that have promised retirements across the State and Local governments. As more and more money is printed at ever faster rate in these countries to fund the government budget gaps and retire precious bonds, money from the market will come out and flow into precious metals. Thus the hyperbolic move in precious metals that we have been experiencing lately. Eventually all this mess will be washed away with another Great War (perhaps bigger than WW II) and when countries are exhausted they will be summoned/invited to agree on new terms and conditions for a global currency and a global central bank, and all the other institutions that are needed to support the house of money (such as global government, global police/army, etc), which have already been operating in Afghanistan and Iraq since 9/11. In 6 or 7 years US Dollar will lose the status of reserve currency, and relegated to the poor man of North America, just as Britain was given that status after the 2nd World War after being forced to fight on many fronts. Real sad state of international intrigue where the rich make the law for the rest of society to their our benefit. Ultimately, paper money will not survive and we will have electronic credit coming from IMF or BIS and given to people who obey the laws made by the super elite. Then the global masses will question the meaning of FREEDOM in all spheres of life, and the so-called shadowy freedom that they (masses) enjoyed for the past 60-70 years will come into question.
As Late Prof. Emeritus Alexander Tyler (Univ. of Edinbourgh) wrote in 1850 in his book titled “History of Mankind from Creation to Early 18th Century” that throughout history mankind have gone from FREEDOM to BONDAGE (Slavery) in 8 stages. In the last two stages mankind goes from Apathy to Dependence (handouts and bailouts), and then finally, from Dependence to Bondage. Then mankind recovers from bondage via courage that comes from spirituality knowing that God Almighty had created them as free being worshiping their creator and not worship any human being or group of select humans who deceitfully gains control over the masses. God Bless us to find that courage to free ourselves.
An uncoupling of the bond market spells economic catastrophe for the U.S.. What it would reveal is that investors have lost confidence in the ability of the U.S. Treasury to make good on its promises, at least in the foreseeable future. Bond prices will tank and rates would rise forcing an incredible interest payment burden on the American taxpayer as we now owe 14+ trillion just in principle to the holders of our debt. Who in their right mind would be long on U.S. gov’t debt at a time like this? I feel sorry for all the unwitting investors who have followed the advice of “bonds are safe for your retirement nest egg”. Inflation, beginning nearly 100 years ago, is the root of all this boom and bust mayhem, thanks to the Fed and its complicent politicians. Might I suggest a bit of Austrian Economics anyone?
I have read a lot of the blogs and I have not seen one obvious fact mentioned (forgive me, should I repeat the obvious): in case of a government bond or treasury note crisis we shall be hit with a double whammy.
1) If the bond prices drop the government must buy mor bonds to finance x amount of debt ;
2) Lower bond prices increase the bond interest rates.
The government has to buy more bonds for the given debt and pay higher interest on the larger number of bonds.
Am I ignorant in this matter (therefore mistaken) or do I see the problem correctly?
How does one obtain detailed info on your assessment of cycles?
Don
Dear Scott: I am concerned that you would have your entire retirement money in only one type of investment. It might be wise to diversify a little.
A rate change in 10 year notes yields taking them from 3.5% to 5% is a 43% ‘pop’ (as in bubble) to that market. Are bond holders going to sit out this little joke without reacting?
Are stock holders going to sleep at the switch while their favorite corporations eat a 43% increase in the cost of money? My guess: B$800 will vaporize when that happens.
This economic bust really is planned isn’t it.
Are they in full control of their plan though?
We really are headed for a one world government ruled by a one world bank.
The dollar will be printed into oblivion.
There’s a very rough and scary ride ahead.
The wars for a generation are happening as Bush stated.
Meaning there is no democracy.
The pentagon will fight it’s wars for a generation regardless of the peoples vote.
Goodbye America we loved you in the good times.
Yes I might be crazy but I think you have to be to stay sane in these mad times.
http://www.youtube.com/watch?v=QeRv4IHoP70
I just found this website. But I don’t see a tab to hypertext over to the actual latest currency ratings. Can or can’t it be done from here? And, if it can, how do I do it?
If you like to keep score, the gold bugs are beating the dollar bugs handily so far.
As gold has risen, at each step the dollar bugs have said the price was too high, and gold will fall.
Also at each step, the gold bugs have pointed out that the annual budget deficits,and the resulting rise in the national debt, which they claim are the primary causes of the rise in the gold price,- have not yet been reduced by our politicians.
There is one point that both sides tend to agree on: if the politicians can figure out a way to solve the debt problem, the price of gold will fall and not bounce back, but stay down permanently.
So, when meaningful deficit and debt reduction takes place, that would be a clear sell signal for both gold and silver.
I don’t think the world wide gold markets will count any promises or agreements, to make future reductions in our debt, as meaningful debt reduction. I believe we are past that point. They want to see the actual numbers fall dramatically.
I try to view gold and silver not as investments, but rather just as savings accounts in another form of currency, which will most probably retain their purchasing power better than the dollar, at least until we see the light at the other end of the tunnel.
Historically speaking, they both have a good track record of doing just that. By not expecting more than that, there is less chance of being disappointed.
I think the U.S. will lose its Reserve Currency status. If this happens, the standard of living in the U.S. good drop by as much as 25%. A question for Dr. Weiss. If this happens, how do you protect what wealth you have?
While we are talking about or ignoring the elephant in the room: our addiction to war, let’s also talk about the underpinning of that addiction, and a cornerstone of our foreign policy: the production, maintenance and threatened use of nuclear weapons, of which we have a huge and deteriorating (I.E. LEAKING) store house.
I agree with Mr Fuller.
The only people who will be able to preserve their wealth will be extremely wealthy people.
The plebs have had it and freedom too.
Serfdom and imprisonment of huge numbers of people is inevitable.
But no one really wants to hear that do you.
This isn’t just about the safety of gated communities this about total chaos of Biblical proportions.
Money events appear to be on the verge of becoming unglued!
if the politicians can figure out a way to solve the debt problem, ….
I honestly believe that is not just impossible but no one has any intention of doing any such thing.
I have come to believe the conspiracy theorists are correct, well some of them.
We are headed for total economic collapse by design to reduce America to nothing.
The same people who create the chaos will come riding to the rescue with a plan to solve the problems of mankind.
A one world government.
I think people are blinded or naive or to fearful to admit that this is what it is looking like more and more each day to more and more people.
Dig a big hole and hunker down folks.
I keep reading things like lets get rid of this president at the next election and get a Republican in there , a very conservative one.
It was a Republican who started the wars and the printing press for dollars.
It was a Republican who gave you socialism for the corporations and banks and capitalism for the customers.
How can anyone still believe that the answer to all our troubles is an election.?
Heres a light hearted look at why that won’t solve anything but it does contain some bad language.
George Carlin Doesn’t votehttp://www.youtube.com/watch?v=xIraCchPDhk
http://www.youtube.com/watch?v=xIraCchPDhk
at some point China and Japan will want to cut their losses. Putin tried to get China already once to dump US treasuries. I believe China is just waiting until they think they can survive on internal consumption and have a strong enough navy to defend their sea lanes. I have friends in China that tell me China is launching 2 new nuclear submarines a month. You don’t build nuclear submarines for coastal defense. I believe we are very vulnerable to a cyber attack coupled with China dumping US treasuries and at the same time allowing the Yuan to float on the market. The Yuan would skyrocket as the dollar collapsed allowing China to corner the commodities market or purchase enough gold to go on the gold/precious metal standard and become the most powerful currency the world has ever seen. Our economy would be crushed. We would be unable to purchase any commodities to produce anything and we would be looking at anarchy/social unrest on a massive scale. The US govt. would then have to decide whether or not to attack now before the military collapsed. Not a pretty picture.
I wish someone with brains and honesty would tell me if I should just get out of the market alltogether. One idiot says buy-buy-buy and the next blabbermouth says we are all doomed. One thing I do know is-if we don’t get those chicago thugs out of the WH this country is gone. Those lame brained sen. and congressman should
be in prison for not doing their job. Am I pissed??? Guess!!!!
Agree with the colapse scenario. Fed is hiding the weakness. Some politicians get it, maybe all, they are smart people afterall. But why can not they get it right.
I see hyper inflation on the horizon.i believe we are seeing the beginnings of it right now.I’m unsure what the collapse of the bond market will entail.with hyper inflation it would wipe out bonds anyway so I guess even if bonds don’t collapse they will be wiped out by inflation.real assets are probibly the best bet(gold,silver oil ect.)the collapse in bonds if it happens will drag the stock market down with it & probibly every other asset class with it,but at least with a hard asset you will have something when the smoke clears.Everthing else will be toast.
A lot of Americans have some investments in Israel. Do you have any ratings for it? If not, do you expect to. Thanks.
After reading the “The Great American Apocalypse of 2011-2012″ and several other publications by Weiss we have changed our investment strategy dramatically. We have purchased gold bullion and invested in inverse ETF’s. My question is when the dollar falls and the value of the inverse ETF investments increase how do you ever get out of your position in the inverse ETFs? If you hold your position then you risk a rebound of the dollar, albeit a very slow one, that would decrease the value of the inverse ETFs. If you cash out near the top then you get dollars that are worth a fraction of their previous value.
What am I missing? I’m looking for an exit strategy for my investments in gold and inverse ETFs years down the road.
Why not be in just gold, silver, platinum, palladium….all world currencies are fiat; inflation will hit all countries; a bond collapse will bring a market collapse. Diversification can bring many opportunities to lose money, under a apocalypse scenario, which Weiss Research has embraced. What good are dividends in hyperinflation?
Gentlemen/ Ladies
The Capitalist Genie is now out of the bottle it aint going back!!
Smoke and mirrors, is now the new World order of making money, Invisibles that do not exist and never has. Sorry guys no such thing as experts might as well be mystic Meg, than a financial adviser. Finally I am a capitalist but seriously beleive a new order/system has to be implemented, a system that rewards succsess and penalise’s failure, sorry to harp on, but the Banks were only one of the ingredients that caused this situation, the other major factor is the incredibly greedy and stupid Muti-Nationals manufacturing products in 3rd World countries for extensively for the last 30 years
I have a very diversified portfolio with Aneriprise, Stifel-Nichokas, Sunamerica, totaling
over $1 million plus a $400,000 house paid for and good life insurance , all for 82 yr. old wife, and self.
Not one of my investment advisors has suggested that I switch any holdings to cash or gold.
I agree with your rating of the US economy and pray that those idiot politicians will get together
and drastically reduce spending (Medicare, Defense etc.), and even eliminate tax reduction
on the rich (who don’t need it and have extensive tax shelters). What do I do ?
Andrew R. Carr
I liked this comment from Michael. It would mean lost confidence. You can print all the bonds you want too but what you can’t print are the people willing to buy them. It’s about faith and this is about the Federal Government destroying our faith. This is about Austrian Economics. I have 100% faith, the Federal Government regardless who’s in office will do the wrong thing. The Nation is about 14.3 Trillion in debt and we Americans have about 15 trillion in 401ks and IRA’s. When the Fed stops buying our bonds, the government will try their best to steer all of us sheep into Government Bonds by changing the rules and tax laws concerning 401ks and IRA’s. I think it is very smart for those who can to open up a bank account with EverBank. It is FDIC and you should invest some of your money in CD’s of foreign currencies. If you are afraid of Bonds and the Dollars (which you should be) just sell some of your investments and open up an account with EverBank in a different currency,
If US Bonds crash what are you projections for the price of Gold and Silver?
WHAT?!
Have you looked at the prices of gold and silver lately? There are already many who have abandoned the dollar.
As for switching currencies to protect ourselves: Won’t work. When the drunken giant that is the USA stops teetering and falls like a pole-axed Tyrannosaur, it will take the entire world’s economy with it. Those countries like China, who have amassed large stores of gold and silver, will have less trouble surviving the aftermath.
Those who support the US bond market are following the oldest script in the financial world – PUMP and DUMP! When they finally sell (and they will), the end will come. Think the year 2000, when the techno-bubble burst. Think 2008, when the real estate bubble burst. Think 2010, when it became obvious that nothing was working anymore. “STAGFLATION” seems to occur under such conditions.
I hear that Paraguay is nice.
Silve and Gold should be rocketing up! But it looks like the Feds are calling in bailout favors on JP Morgan to dump when silver hits 49 (three times now). As this being likely how can the logic of protecting your wealth with silver and gold work with the Feds continuing their lie to the American people dumping silver keeping from hitting 50? (via JP Morgan)
Here read for yourself and make the same conclusion:
http://www.resourceinvestor.com/News/2011/4/Pages/Could-Secret-Silver-Buying–Lead-to-Comex-Default-.aspx
Oh, yeah. And if you feel maxed-out on silver coins at home, SIVR and ETF on silver matches silver very well (Weiss Watchdog). Of course, you can’t barter with them, but if the short squeeze is allowed by the Feds you’ll get a triple hitter according to the article about the articles in Financial Times (FT)…. http://www.resourceinvestor.com/News/2011/4/Pages/Could-Secret-Silver-Buying–Lead-to-Comex-Default-.aspx
Weiss is worth joining for such a small fee, compared to typical commissions.
China are unloading dollars by the truck load, buying up oil silver gold copper etc etc etc etc etc.
Someone is going to be left with those truck loads of worthless paper.
Don’t be one of them is my advice.
Is there anyone who seriously thinks a change in the white house and a few tweaks to policy will sort this out in some kind of comfortable way?
All back to normal, kids growing up getting married getting a mortgage having a decent job and future?
If so please explain how to this simple man cos I can’t see it for the life of me.
Sorry Mr Weiss but any investment that results in you owning a piece of paper has to be a no no right now surely?
How much faith do you have and what is it based on?:
Also, what value does Mister Protector have as the dollar being the worlld reserve currency? That dollar inflated paid to keep countries around the world safe. They want China or Russia protecting them now?
Perhaps its time to get these countries to give some value to their protective services. Look at NATO they’re a joke of a defense, expecting hyper-inflated American workers and knowledge (paper money) to come to their rescue.
The America’s defended ? Only by the hard working paper boys!
Dr. Martin, Thank you ! You diplay the true american generous spirit, with all of your free insite! Now , to add 2 cents about what will happen to the US if the buble bursts! Well! I believe a select few ¨Elite¨ families historically end up with control of a very large share of the worlds wealth. and that is why I believe that in the comming years great impot will placed on royal lineage. what was thought to be extinct . I believe kings and queens will once again be , and as for the regular people everything all the way down to surfdom and debtors prisons . Thats why the traitors of our country have been pushing for criminal prosecution of debtors but can´t move until the bankers get out of that catagory . Who knows what european will lay claim to Us and our country. That brings me to my second thought ! their might be a small revolution or war . thirdly , the people will inturn be utterly frustrated and you will see and even bigger push for legalization of drugs to mask the coming fear and stress, fourth, ther will be a loss of the value of human life as never before as wealth redistributes to a few and our money becomes totally worthless , It will be as never before in the history of this world . as was quoted ¨if you give the bank power to print money you and or your children will wake up as slaves on the continent they once conquered. To get out of this mess we must institute jubelee . and be saved by zero!
Dr. Martin, Thank you ! You display the true american generous spirit, with all of your free insite! Now , to add 2 cents about what will happen to the US if the buble bursts! Well! I believe a select few ¨Elite¨ families historically end up with control of a very large share of the worlds wealth. and that is why I believe that in the comming years great impot will placed on royal lineage. what was thought to be extinct . I believe kings and queens will once again be , and as for the regular people everything all the way down to surfdom and debtors prisons . Thats why the traitors of our country have been pushing for criminal prosecution of debtors but can´t move until the bankers get out of that catagory . Who knows what european will lay claim to Us and our country. That brings me to my second thought ! their might be a small revolution or war . thirdly , the people will inturn be utterly frustrated and you will see and even bigger push for legalization of drugs to mask the coming fear and stress, fourth, ther will be a loss of the value of human life as never before as wealth redistributes to a few and our money becomes totally worthless , It will be as never before in the history of this world . as was quoted ¨if you give the bank power to print money you and or your children will wake up as slaves on the continent they once conquered. To get out of this mess we must institute jubelee . and be saved by zero!
You have to remember that Americans have only been able to have the standard of living they have had by borrowing off the rest of the world.
The American dream was on credit.
That amount of lending to America has limited the opportunities and prospects of the rest of the world.
The American dream was never actually paid for was it?
nohomehere ,
could that be king Rothschild or King Rockefeller maybe?
I suspect the problem has still has some “yet to become apparent” aspects that will soon enough raise understanding of and visibility to the games being played by the Fed. Significant amounts of “money” was loaned to central banks throughout Europe and probably other developed “friendly” nations. Whether the action was of a loan or a bond purchase, the effect is essentially the same; we expect a return in our investment. Our monetary manipulations will result in being repaid with devalued dollars, whose nominal value may appear profitable, but in reality represents a loss for our economy. Let’s see just how supportive these countries remain after each sheds the yoke of our investments into their economies. Who would ever invest in a guaranteed loser? Only Ben!
I am afraid that this country will descend into total anarchy and lawlessness due to the actions& inactions of our elected officials, who let their master plunder the country. Remember, we were lied into a war in Iraq. The war was privatized. Billions, yes billions of our taxpayer money was flown in on pallets, weighted, not even counted. This money can’t be accounted for, but a lot of private contractors got rich at our expense. At the same time, an insane tax cut practically ensured that country would be bankrupt in short order. Wall Street fraud is rampant, but nobody gets prosecuted. Tax $ we don’t have get spent bailing out the banksters who still gets bonuses! ” Change We Can Believe In” should have been: “Entrenchment You Can Trust”. Nothing changed, because Obama has the same masters as his predecessor.
Americans can get together and work out the problems as well as survive the hardships if they see a fair and level playing field.
To my mind, the following needs to be done:
Prosecute the people who got is into Iraq, for treason, and punish the guilty to the full extent of the law.
Prosecute all involved with the real estate financial scams, derivatives scams, CDS scam, CDO scams, straight up and down the ladder.
Since most bankers bonuses are the result of criminal activity,(the above mentioned scams!) confiscate them.
Re-instate Glass-Steagel ASAP.
Change the tax structure, so that everybody pays their share to the best of their ability! Remember we are in perhaps the greatest crisis in our nations history, tax high earners 50%! The idea that would cost jobs is utter nonsense!
Change the campaign laws so that we can get real representation in Congress & Senate instead of the special interest Trojan Horses we have now.
Cut military spending by 75% and get out of Iraq, Afghanistan and our foreign bases.
Socialize health care. As a country, that would SAVE us billions! The so called “system” we have now is by far the worst and most costly. (Don’t believe the horror stories about other countries health care systems, I have lived in several of them and they are FAR, FAR better than ours (Sweden, GB, Switzerland)! They Don’t even compare, and the citizens of those countries think our system is nuts! Guess what? they are right!)
Change our foreign policies to a neutral one, that benefits the USA instead of foreign countries with strong lobbies!
Will any of this happen? In all likelihood not, and that is why I’m looking for a place abroad, lamenting that the country that I love, and left everything to immigrate to some 30 years ago, has been wrecked and ruined.
The crashing of the bond market will, of course, mean higher long term interest rates and
tighten the source of credit for Companies who use this method of financing operations. Banks that use bonds as collateral for loans will scramble to change collateral. The stock
market will take a plunge that will last for a short duration. This means U.S. and Canadian stocks will fall.
I believe some Banks will fail because of this crash. No one ever said bankers were the smartest group of executives.
In the long run, I believe this will help the senior group because they will be able to get
better rates on their investments.
OPEN A FOREIGN BANK ACCOUNT AND MOVE SOME MONEY OVERSEAS AS A LIFEBOAT, WHILE IT IS STILL LEGAL FOR YOU TO DO SO.
GET GOLD!
Please include Hong Kong and Singapore in the Country ratings.
Do you expect that the USA will soon impose currency controls so that USA citizens cannot as easily take their USA savings overseas?
I think it is in everyones interest to keep the game going, how will chinas credit rating be if we default and they are holding trilions of our debt. We will default or more likely print money to devalue our debts. Europe is already a basket case and who can replace the dollar at this point? I think we have time to cut spending but the debt will only grow…im for a default…start over
if US dollar loses its world reserve currency status in 2011, will canadaian dollar, banks and economy follow US trends as canada have 80% or so trade with US. Will both countries fall together?
After reading the comment by Mike Larson that different countries receive different ratings in differnt categories it seems to me that some detail should be provided to properly assess the ratings.
Uncle Sam has a bloated reality problem. Our nation has been so busy spending that its forgotten to check the bank…easy come and easy go!
I congratulate Weiss ratings .The truth canbe very disturbing.
Mises was right, Socialist Central Planning (Federal Reserve) and Socialist programs (Social Security and Medicaid) cannot survive. We are observing the last days of Another Empire. I hope that after the collapse we can destroy the institutions (CFR and the traitors) and its foreign agents (UN, Trilateral Commission) that work for the City of London. They try to destroy the American Spirit but their Utopia of a World Government will never prevail. The Bills of Right and the Real Free Market (Mises, Hayek) will prevail after a short period of dark age (This generation of Americans will have their chance to put America in the altar of Freedom) “”The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.” –
— Thomas Jefferson
Of the $35 trillion of world market capitalization, the US is 40% or about 14 trillion. China is 860 billion or 2%. Won’t it take more than 5 years for them to be bigger than the US?
George
Great post … America has been looted by criminals.
Criminals in the white house. Wall St, The Fed the Pentagon the media.
This is not an economic glitch or mistake.
This is the looting of a once great country.
I’m in England by the way.
Mervyn King the Bank of England boss has made a number of speeches asking why the public aren’t up in arms.
Why aren’t they protesting rioting in the streets?
He says the situation isn’t because of the government or social security or pensions or any other thing other than bankers.
The people are now losing everything to give the bankers more and more.
I trust what the head of the Bank of England is saying.
I don’t trust his motives.
It’s as if he wants us to riot.
Someone please explain to me how you can continue to have faith in pieces of paper.
You part with your hard earned and invest in pieces of paper.
I’ve asked on here and I’ve asked elsewhere.
No one can explain their faith to me.
What this faith is based on?
Blind faith maybe?
Hi it will probably get things going faster towards a full fledged depression wouldn’t it……… or will it be that bad.i think if the phony in the white house is thrown out, it might change things but i do not no if that could stop things from going down hill or not if that happened. It might be a good idea to have lots of ammo on hand i hear. Here is a link if you want to help in that department…. http://www.nraila.org/Legislation/Read.aspx?ID=6711 they will be in court next week trying on a strong begining of the first steps in disarming Americans..if they do it will not be long before its a one way trip to the “FEMA DEATH CAMPS ” go to youtube and type that in and see what you get. That makes the stock market look like a lamb compared what they have in store for us. That scares me more than all of it . If you look check out several clips, There is some that tells it like it is. Maybe I’m missing something but 1 thing for sure we will have a hard road to travel what ever happens. anybody here watch Alex Jones ? Type him in at you tube as well and you will have a whole new outlook of how things might go for Americans. I no another thing ,if the people pulling the strings that are controling our elected officials, we can expect thing to get as bad as they want it, this has got away from what the question was ,but has a impact on it all to destroy the dollar. Im not sure if wealth will help or not if they get there way in the end …..the mess they did intentioinal to America,,,I like what George said he put it as plain as it gets..words well said and true…… along with so many others here in this blog. When things get to the bottom and martial law happens….like Gorge said get use to the thought of kings and queens with slavery. Like I said go to youtube and type in FEMA DEATH CAMPS. When i first saw them …there was just a few ….now there all over the US, empty and built of something big to happen. they all have gas chambers and ovens for the next step after the gas chambers…some have miles of coffins stacked out side the fences of these places…..not sure if you can still find it but there was 1 with rail cars in them with double rows of benches with shakles…1 way trip they all have rails going into them just like hitler had built. The bonds are a tease to what things are looking like all of this might be going on to take the eyes away from what is about to happen that no one is seeing !!! Things are just going to get crazy soon and dose not look good either way. Good luck to all what ever happens.
I think what is happening is the questioning of the validity of your rating and who you are. I would like to hear some of the major rating companies discuss your capabilities and reliablilities. I question them too.
duane harvey
Thank you for your post.
I have looked into quite a lot of this stuff of late and if you mention it your a conspiracy nut and thats the end of that!
The speed with which such information is dismissed by people who haven’t really looked into it makes it even more interesting.
What’s this about the Federal reserve being a criminal take over in 1913 of Americas money supply?
Is it really as I’m told on the internet?
A handful of private bankers making money out of thin air which the tax payer pays interest on forever to a few families or corporations, surely that can’t be a sensible way to run a nations economics?
I had a man that had excellent rank tell me,if Iraq plus Vietnam would pay us back for debt of war,just 2 wars,we America would be out of debt.My question was,how do we know they did;nt already? Our goverment would not tell us,we the people? China working hard to be no.1 power! I think the greed is big in White House.Very corrupt. There all as mad men! I do not trust thier ratings at all.Canada is good i believe.They are trying hard to destroy America.To much propoganda and lies,lies.Do they think they can take money with them? WRONG WRONG! If they destroy us,they also will be destroyed.Who fooling Who here? Big surprize for them all. No one wins!!!!! Pure evilness! They will answer! God help us all.
If other nations dump our bonds, which are funding the operations of our government (having other people pay our services), it’s really simple what will happen. Either the services will stop or our Federal Reserve Printing Presses will start cranking and the services will be paid for out of money created out of thin air. We will become a nation of self sufficiency, as much of self sufficiency as be expected with having factories exported out of the USA which were once here helping to maintain our previous state of self sufficiency. Some products will disappear because they aren’t being manufactured here. (Here’s a thought, maybe the factories will be rebuilt with money out of thin air to bring back self sufficiency?). Will inflation occur, obviously, but the consumer will ultimately decide if he want’s to pay for something he thought he really must have. Some or many will learn to do without these things because it’s too costly. Life will return to an existence of simpler means. Only the essentials will be bought, if not made or produced by the consumer themselves. But life will go on, it always has, just in different styles!
George Luniv
I don’t doubt life will go on but the days of family farms john boy and Christian morals have long gone and the people, have actually been taught it’s every man for himself.
Every man for himself in citys of shortage will be extremely mean and dangerous don’t you think, Especially in cities with no schools no jobs no cops.
We’re talking millions of angry people here.
Just a shortage of affordable oil knocks out agriculture almost completely.
The western world is looking quite scary.
Maybe I should be moving to China?
You want ANOTHER quizzical “topic” to stir things up?
“Americans for the most part believe their monetary system is in terminal condition. They know American Government Bonds are never going to be redeemed with the same purchasing power. The question of the week is, “Why isn’t ANY Republican in Congress standing up and sharing this truth? Why is D. Trump the only person standing with his finger in the Dyke saying what ALL Americans already know to be true??” “The end of the American economy may be months away and nobody is sounding the alarm in Congressional leadership!”
Where is the rest of the WORLD? Why aren’t they BEGGING Congress to do something. If American goes down in flames the World goes with it!! Maybe in the absence of these two entities Weiss is totally WRONG!!
I have totally cleaned this e-mail from all other names, sending it to you in hopes you will keep it going and keep it clean. This is something I will fight for and I hope
you all read it all the way through. You will be glad you did.
The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified!
Why? Simple! The people demanded it. That was in1971
…before computers, before e-mail, before cellphones, etc.
Of the 27 amendments to the Constitution, seven(7) took 1 year or less to become the law of the land…
all because of public pressure.
I’m asking each addressee to forward this email to a minimum of twenty people on their address list; in turn ask each
of those to do likewise.
In three days, most people in The United States of America will have the message. This is one idea that really
should be passed around.
Congressional Reform Act of 2011
1. Term Limits.
12 years only, one of the possible options below..
A. Two Six-year Senate terms
B. Six Two-year House terms
C. One Six-year Senate term and three Two-Year House terms
2. No Tenure / No Pension.
A Congressman collects a salary while in office and receives no pay when they are out of office.
3. Congress (past, present & future) participates in Social Security. All funds in the Congressional retirement fund move to the Social Security system immediately.
All future funds flow into the Social Security system,
and Congress participates with the American people.
4. Congress can purchase their own retirement plan, just as all Americans do.
5. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.
6. Congress loses their current health care system and participates in the same health care system as the American people.
7. Congress must equally abide by all laws they impose onthe American people.
8. All contracts with past and present Congressmen are void effective 1/1/11.
The American people did not make this contract with Congressmen.
Congressmen made all these contracts for themselves. Serving in Congress is an honor, not a career.
The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.
If each person contacts a minimum of twenty people then it will only take three days for most people (in the U.S. )
to receive the message. Maybe it is time.
THIS IS HOW YOU FIX CONGRESS!!!!!
I’ve just been reading terrible things about D Trump …I’ll go and get the link.
People like him scare the crap out of us Europeans.
Donald Trump.
Scary stuff if it’s true.http://www.informationclearinghouse.info/article27993.htm
http://www.informationclearinghouse.info/article27993.htm
Osama is dead.
So they can bring the troops home and stop bombing Pakistan and our investments will be secure!
I’m betting most people will believe this crock too.
consider australia. given a ‘c +’ rating… just above new zealand, who rated c. fair enough so far. but does the us deserve to be rated higher or lower? in my view…. lower. much, much lower. heres why: consider the size of the population: in australia its 22 million. in nz its 4 million. A-NZ is 26 mill all up. in the us, its about 330 million people all up. the national net debt equals around $1500 per man woman and child in aust and nz. in the us its more… much, much, much more. in fact its a hell of a lot more. and with quantitative easing… ie massive global fraud… the debt will take that much longer to service and repay… if anybody can be found to fund that debt. the aus and nz currency is backed by trustworthiness, by massive resources and strong trade, and strong domestic demand. the us currency seems backed by little more than that same massive debt and a determination that the rest of the world is going to pay for that debt. oh… and guns. lots and lots and lots and lots of guns. does it occur to anybody that perhaps the rest of the world has finally woken up to the fact that they have been subsidising the american way of life at the expense of their own wellbeing? why would i deny myself roads schools hospitals and fresh water just to help pay for your latest luxury suv trip to the (airconditioned) mall for more cheesewiz in a can?
Reginald Perrin is correct when he said “We’re talking millions of angry people here.” It is true that all fiat currencies are like pimples and warts but some are better than others and it depends on what you measure them against. Of course a dollar and bond collapse will hurt the global economy but it will truly hurt us Americans more. What seems to be happening is that the bonds China is selling and or no longer buying are long bonds 20, 30 years maturity and the bonds they are buying are the 2 year maturity or less. It means they are moving closer and closer to the escape exit. Because of this, there seems to be hundred of billions of short term debt that the U.S. will have to roll over in the next 2 to 3 years. According to Dr. Stephen Leeb, both China and Russia are opening currency swap lines in which countries can sidestep the U.S. Dollar completely. China now has agreements with Malaysia, Indonesia, South Korea, Hong Kong, Brazil, Argentina and Belarus. I would guess that this list of countries will continue to grow. Russia is setting up it own commodity exchange not based on the dollar and will become a challenge to the CBOT, NYBOT, and NYMEX. Through The Gulf Monetary Union, Kuwait, Saudi Arabia, Qatar and Bahrain will create their own central bank and an Arab petro-currency. Their combined GDP will be as large as China. This is my biggest fear. The day the world no long prices oil in dollars. Even if OPEC creates a basket of currencies and the dollar is a small part of this basket, gasoline prices at the pump will go up here in the USA like a roman candle. Here’s where the millions of very angry people are born, at the gas pump. The global population is growing by 70 million per year but the global car and light truck production is growing by 75 million per year. China has now replaced America as the largest car producer. It no longer matters how many miles per gallon a car gets…..what matters now is the total global number of cars and light trucks in the world. It’s growing like a cancer. A dollar/Bond market collapse will cause the price of oil for Americans to go parabolic. Yes, there is demand destruction and I gave up trying to forecast oil prices years out…..but I do know the global population growth in the 3rd world and oil field depletion rates. A dollar collapse will hurt the global economy but the Swiss franc and Singapore Dollar and other countries and currencies will not lay down and die because we Americans have destroyed our currency. Seems like for me it’s a measurement problem. Everything I own is measured and valued in dollars. House, Cars, Stocks, Coins, IRA……it’s all measured in dollars. It is the dollar that’s sick and dying and it can’t be fixed. It’s smart to pay down personal debt. I personally dislike the Euro and wouldn’t invest in it, but I don’t believe because the dollar is dying that this means ALL fiat currencies are dying at the same time. I like the Canadian Dollar, Singapore Dollar (yes they have huge U.S. Dollar reserves), Swiss franc, maybe Norway? I like them not because they are wonderful currencies. I like them because I can measure a small part of my wealth in something other than dollars. I don’t fear China or Russia. I fear the Federal Government when they get in a panic. When China, Japan and other nations and the Fed stops buying our debt…..what will the Federal Government do? The only honey pot left untouched is the 15 trillion Americans hold in 401ks and IRAs. This is what happened in Argentina in the 1990’s. The Argentinian government went after people’s 401’sk and IRAs. I’ve come to believe a sad truth for me, there might not be anyway to completely protect oneself. We will someday live in a nation of millions and millions and millions of very angry people and have a Federal government that’s in a complete desperate panic. Reading the comments people post here are left by people who are aware and informed and know something’s up. But the vast majority of Americans are clueless. It’s the clueless that will be the millions of very angry people. Even if we are able to protect our assets we will be a target for them and the Federal Government. We might be labeled greedy speculators and hoarders. The best investment (if you had a place to put it), might be 200 cases of Jonnie Walker. After the collapse, what will one bottle cost five years from now? I am sure everyone will want a drink by then. Even my preacher. For all of you who left comments on this post, God Bless all of you and your families. Keith Renick, Project Materials Specialist, Project Management Team, Central & Western Projects Department, Saudi Aramco Oil, Retired
As an investor from Ireland, I find it hard to agree with the previous viewpoint expressed vis a via his view that he finds it hard to invest in the Euro. Indeed, had he transferred his dollar holdings last June, he would have yielded over 16% in the interim. America is carrying such debt that it is somewhat inevitable that the dollar will have to be deflated (by design) in order to re-float the country. Most Europeans consider that a new gold-standard currency, as during the great American depression, is neccessary to salvage same. We in Ireland are taking the life-buoys thrown to us, as a small rib found at sea by a larger vessel, however, America is a supertanker with several large leakage factors (jobs, growth, indebtedness and huge military spending). It is becoming more apparent daily that it is too large to save and, whilst todays news is welcome, in light of the growing lack of governmental unison neccessary to delay (or deal with) the burgeoning problems facing the country, as a whole, one has to wonder why it is so timely. Perhaps we should keep our eye on the (base-)ball and not be distracted by some of the other announcements on the big screen. We are all playing, after all, the biggest game of our lives, with the gravest potential outcomes.
John, you are missing the point. “Confiscation is larceny”. Is it larceny to confiscate the proceeds from a criminal enterprise? Such as drug dealing, or robbery? I propose to you that a lot (by no means all) of the fortunes in the US are a result of criminal activity. When the Fed doubles the money supply, and lend it out to whomever it chooses, at .25%, it is in effect stealing the wealth of the population. Much of this “stolen” money end up in other countries or is getting loaned to the Government (us) at 3%! Money was being lent from the Fed to various organizations and individuals with instructions to buy troubled assets, at no risk, if the assets went down the Fed would take them, and the borrower would be held harmless, if the assets apreciated, the borrower could keep the gains! Forget this talk about socialism and the rest of the nonsense, we are being robbed, and people are so entrenched in their ideology that they refuse to see it! Every civilized country has a “common wealth”, and in the US this is being stolen and put in the hands of a few, through wars as well as the schemes of the Fed and Wall Street. If you see the politicians as anything but agents for the plunder, you are blind.
Sorry for the typos, I’m not a native english speaker.
Quote: “The western world is looking quite scary”
Especially the US where everybody has guns!
Hi Van: Perhaps I can answer your question to Dr Weiss. The total amount of Gold held in Fort Knox by the US Treasury is 261.5 million ounces with a current value of about $400 billion. This Gold is pledged as collateral on $11.2 billion in Gold Certificates issued by the Treasury and held by the Federal Reserve.
The Great American Apocalypse, NO! If you study the Bible and read His Story (History) you will know that the Apocalypse will not happen in our lifetime because other events must happen first. BUT, if our country continues not to acknowledge our Creator and who He is and the people continue to live life there way; the Creator and the God of Israel will NOT protect our country. Our Great Country was founded by God fearing people and Blessed. Our culture today has removed ourselves from a relationship with Him. God has His hand always stretched out to help us, but if we continue to be selfish, prideful, arrogant, greedy, etc; His hand will come down on us and could wipe us out. Think about the days of Moses and how they moan and groaned when God was with them. Well, it took 40 years to travel on a two week trip! Think about the Prophet Isaiah and how God was angry at the Israelites and wipe them out and then the remnants were left behind. THEN they paid attention to the Creator. So what makes you think that our Great Country will continue to be protected? Our culture today is not acknowledging God that He is not going to protect us from anything!!! The Bible is our human manual of how to live a righteous life.
There has been an e-mail going around for all people to pray 1 minute at 9:00pm EST, that God will turn our Great Country back to a Godly Nation. And if you are a non believer; well I would not want to be you on Judgment day. Yes, ALL will be Judged. It doesn’t matter what you think about God, because it doesn’t change who He is! Have a great day, week, month and year!
The Great American Apocalypse, NO! If you study the Bible and read His Story (History) you will know that the Apocalypse will not happen in our lifetime because other events must happen first. BUT, if our country continues not to acknowledge our Creator and who He is and the people continue to live life their way; the Creator and the God of Israel will NOT protect our country. Our Great Country was founded by God fearing people and Blessed. Our culture today has removed ourselves from a relationship with Him. God has His hand always stretched out to help us, but if we continue to be selfish, prideful, arrogant, greedy, etc; His hand will come down on us and could wipe us out. Think about the days of Moses and how they moan and groaned when God was with them. Well, it took 40 years to travel on a two week trip! Think about the Prophet Isaiah and how God was angry at the Israelites and wipe them out and then the remnants were left behind. THEN they paid attention to the Creator. So what makes you think that our Great Country will continue to be protected? Our culture today is not acknowledging God that He is not going to protect us from anything!!! The Bible is our human manual of how to live a righteous life.
There has been an e-mail going around for all people to pray 1 minute at 9:00pm EST, that God will turn our Great Country back to a Godly Nation. And if you are a non believer; well I would not want to be you on Judgment day. Yes, ALL will be Judged. It doesn’t matter what you think about God, because it doesn’t change who He is! Have a great day, week, month and year!
All of this is somewhat beyond my total understanding of who is doing what behind the scenes. Can the Fed buy back every single dollar of our debt when our debtors want their money back?
It was called The Great American Apocalypse … meaning it isn’t the global one talked about in the Bible.
Now I understand why a lot of Americans support Zionism having read that post!
You do realize that Zionism is against the teachings of the Torah and thefore against God?
http://www.google.co.uk/search?hl=en&q=jews%20against%20Israel&um=1&ie=UTF-8&tbm=isch&source=og&sa=N&tab=wi
Great Credit Information in States and countys
The destruction of our currency would eliminate the purchase of foreign products of every type. We could possibly get along with strictly domestically produced products in an eveer -increasing number of items. International trade would, for us, come to a halt, save possibly for some sophisticated type of barter.
Gordon Reigle
egr1930@att.net
But Gordon,
how would you buy oil and certain other resources after you lost reserve currency status?
The answer is you wouldn’t be able to.
You wouldn’t be able to feed America.
I think Americas best option is to pull all troops out of all foreign bases and invade South America.
You would have everything you needed and more for a hundred years.
It’s getting really really sick now.
Osama bin Laden, slayer of dragons. destroyer of empires!
Take a look at this article by Ezra Klein in the Washington Post.
Osama bin Laden responsible for the economic situation.
I can’t believe the bullshit that is fed into our minds day after day!
After reading this you’ll realize how innocent your government is, Wall St too.
The bankers and the Fed all off the hook.
Everyones off the hook and it was all Bin Ladens fault!
We should have known all along.
How many minds is this rubbish now contaminating?
http://www.washingtonpost.com/blogs/ezra-klein/post/bin-ladens-war-against-the-us-economy/2011/04/27/AFDOPjfF_blog.html
Dr. Lyn did not like my comments about the EURO. Let me clear this up. I personally don’t like the Euro. I am not an expert on the Euro. I am not an expert on the US Dollar, Singapore Dollar, Canadian Dollar or any other currency. My thinking is too simple to be an expert on any currency. Here’s my more simple reasons. Europe, The United States and Japan are all the same in many ways. (1) All of them have negative birth rates. Europe will even lose millions in population. Everyone says the United States has a positive birth rate but this is misleading. Both the White and Black birth rate in the United States went negative in the early 1970’s. The United States only has a positive replacement birth rate of 2.1 if you factor in both legal and illegal immigration. Japan has no legal immigration at all. (2) Europe, The United States and Japan all have rapid aging populations and (3) all of them are social welfare states with huge debt burdens of pensions and health care that are not affordable going forward. (4) all of them are inflating their money supply. (5) all of them are fiat money system based on expanding debt. Europe and the United States have tried to fix a negative birth rates with illegal and legal immigration with (often) less educated and less skilled 3rd world nationals. Nations that have a negative birth rate and rapid population aging have huge economic problems going forward. As people age, they scale down and are net sellers of assets. This is the reason I don’t like the Euro, the U.S. Dollar or the Japanese Yen. But again, I am not an expert on any currency. It’s just personal. I don’t think there is much of a future in countries in which people don’t care enough to reproduce themselves and have children who will be future citizens, future voters, future business people and future investors. Demographics, population aging go hand-in-hand with the mountains of debt and fiat currencies being created around the world. This is as old as history itself. The Romans debased their coins, stopped reproducing themselves and had a negative birth rate and had massive legal and illegal immigration to make up for the short fall. It didn’t work out well for them. Comparing one crappy currency with another crappy currency is just not enough. There is a huge demographic and aging component to all of this. God Bless, Keith Renick, Saudi Aramco Oil Company, Retired
I have Tresury I & EE Bonds. What is your recommendation for these.? Keep or sell? Thank You , John
Given the global fundamentals and the current fiscal and monetary policies of the US, we are convinced that hyperinflation is coming at us like a run-away frieght train. As such, we are preparing as follows:
My wife and I liquidated a 401k that she had inherited from a deceased relative. Since there was no 10% penalty, we took the cash and paid the 20% prepaid tax. We then paid cash for a tractor for our ranch and will a take a 179 deduction, which will offset some of the tax burden. We had been accumulating some physical silver and gold, but with this move we now have 2,000 ounces of silver and have begun accumlating gold.
Our next step is to build out the interior of a tractor barn for climate controlled storage where we plan to store can goods, toiletires and other non-perishable items. We have stockpiled a 5-year supply of bottled water and are prepping a garden area and plan to can and store as many fresh vegatables as possible this fall. We a planning to feed out a calf and stockpile the beef in commerical freezers. We are looking at alternative engery sources like wind, solar, and methane co-genaration to become self-sustaining if we ever need to go off the grid.
We are not survivalist, right wing nuts, or anthing of the sort, but we are preparing for the worst and praying for the best. God bless you and yours in these turbulant economic times.
I think one major problem is that we must pass the legislation introduced by Rep. Walter Jones R.
N. C. in the House and Sen. Jeff Sessions R AL in the Senate. A President must be impeached if he
attackes another country without a vote by the Congress. He has committed a high crime and
misdemeaner and must be impeached. We cannot afford these foreign wars. They are a big part
of the deficit and are unnecessary. We must get back to the Constiotution in this matter.