Rudderless On A Sea Of Debt

Gold is up $4.30 and rising this evening, Sunday April 20, 8PM. The Asians thanking the dumb Americans and their Western pals for dumping it this past Friday.

"Gold is on sale." "The Dollar is up, sell now and cut your losses before it bellies up again," Asian traders were over heard cajoling with one another as they steal America's wealth.

The day is not that far off when Asia will own America. Conquering her without firing a single shot. American Dollars represent one thing and ONE THING ONLY...DEBT. It says so right on the money: This note is legal tender for all debts, public and private. For the past 37 years Americans have duped the rest of the world into believing that her Dollars represented wealth. When in fact they represent an unfathomable mountain of I.O.U.s. American debt equals 340% of her annual GDP. THREE HUNDRED AND FORTY PERCENT! What's gonna happen when the Asians call in their share that debt?

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
http://www.treas.gov/tic/mfh.txt

America is drowning in debt. US Government debt is in excess of $9 TRILLION...about $30,000 for each man, woman, and child in the country. The US debt is growing at light speed—$1.4 billion a day or $1 million a minute. Sadly our "leaders" and "would be leaders" [it's a stretch to even use the word "leader" and "politician" in the same sentence.] simply accept this overwhelming burden as a "fact of life". It is criminal what America's Government has done to her people. The burden we as a nation will be forced to bear for untold generations to come cannot yet be put into words. And yet few stand up and call these "leaders" out on the carpet, demanding to know why our nation's wealth has been irretrievably squandered.

But then that would be a bit like the pot calling the kettle black. American consumers possess a rather gargantuan mountain of debt themselves. $2.48 TRILLION of consumer credit debt. Credit card debt alone has hit a record $915 BILLION. There is $900 BILLION of sub prime debt blowing up right now. The $915 BILLION of credit card debt is not only jaw dropping, but it is held at interest rates 3-5 times higher than the sub prime debt. Imagine when this little debt bomb blows up... Who said the American bank's self made credit crisis has passed? LOL, this crisis has barely gotten out of the gate.

Not to worry, the US Government in it's never ending infinite wisdom, has arranged a special deal with the counterfeiters at the US Treasury that will surely fix EVERYTHING. In just a couple of weeks mailboxes across the nation will be opened to the wonders of wonders...FREE MONEY! Who ever said money doesn't grow on trees was absolutely right. It grows in mailboxes!

A $600 BILLION cash stimulus is being doled out to Americans that are $2.48 TRILLION in debt. The handout won't even cover 2/3 of the nation's credit card debt. And heaven forbid you use this free money to pay off debt. The money comes with explicit instructions as to your civic responsibility, and in the name of patriotism, to spend that money like a drunken sailor on shore leave. Spend it frivolously, and save your economy and way of life...even if the real effect of $600 BILLION on the American economy would be akin to pissing into the wind. Seriously, our great leaders have gone to great length to convince our nation of sheep that all of the country's financial ills can be cured with the grand sum of $600 BILLION.

$600 BILLION is less than 25% of $2.48 TRILLION. $600 BILLION is less than 7% of $9 TRILLION. $600 BILLION is chump change and it isn't going to fix a damn thing. My $600 cut of the $600 BILLION pie won't even cover my annual expense on beer. [Beer prices have gotten way out of hand.] Not only is the money chump change, it's not really even free. It's an advance on next year's tax rebate. Which leads one to wonder, "If you lose your job and don't make any money this year to earn a tax rebate next year, do you have to pay the advance back next year?"

Damn, great country innit?

Hey would somebody PLEASE explain to Barrak Bin Laden that imposing "windfall profit taxes" on the Oil Industry will not solve a damn thing. Explain to this Oprah Winfrey puppet, and leader wannabe, that the high price of gasoline is NOT because of EXXON gouging people at the gas pumps. The high price of Oil, and in turn gasoline, is the direct result of the US Federal Reserve and the US Treasury debasing the US Dollar. Tell Mr. I Don't Know Jack About The World Financial System that monetary inflation is driving the price of Oil and all commodities higher. Clue this clueless clown into the fact that inflation is a tax on ALL Americans, rich and poor. Barrak buddy, you wanna see some real high gasoline prices, and maybe some gas lines at the pumps? Slap a windfall profit tax on the Oil companies. You'll wish your momma never wished you grew up to be President. And please share this truth about Oil and Inflation with the others coveting the White House. None of you is worthy of the office...there is not a thread of leadership among the lot of you.

Please pardon my rant this evening, I just had to get some of this stuff out of my head.

This past Friday. Call it what you will, currency intervention, Gold Cartel take down, or just plain bullshit...it really was/is just noise. Inflation is only just now beginning to be noticed and squawked about by the financial media. Remember that the effects of Fed interest rate cuts are usually not felt until 6-9 months after the cut. The Fed began cutting interest rates in September 2007, a 1/2 point cut. Recent inflation data is thru March 2008...6 months down the road from that first rate cut. Bear in mind that when we are told about the "effects" of Fed rate cuts, the effect most often referred to is "growth in the economy". To date we have seen little in the way of growth, but a lot in the way of inflation. March 2008 is six months from the FIRST Fed rate cut....and Inflation is just now starting to get peoples attention and we only have the "effect" of a 1/2 point cut. The Fed's most recent rate cut was one month ago, 3/4 of a point. Since September 2007 the Fed has cumulatively cut rates by three points thru the cut in March 2008. Imagine now, what the potential for inflation will be by September 2008. Stop choking, and just think of how bad inflation may be six months from now. Oh, the pain... Inflation will dominate the headlines as the country goes to the polls in November. Sadly, none of the choices we'll be offered will have an answer for why inflation is so high. ALL will tell you it's because the price of Oil is too high and Exxon must be made to pay for our pain. We will know differently. And we will all be sitting fat in our Gold and Silver positions having weathered the noise of March and April, and all attempts to take our Precious Metals to come. It can't be emphasised enough. Investing in Gold is a marathon, not a sprint. Riches will find their way to those that are right, and sit tight. Focus on Inflation. As the Inflation numbers rise through the Spring and Summer, so too will the level of investment in Gold and Silver. The Rush to Gold is fast approaching.
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News you can use:

Goldman Sachs and Wells Fargo warn 'delusional' investors on stocks
David Kostin, the chief US investment guru for Goldman Sachs, expects the S&P 500 index of Wall Street equities to plummet a further 15pc over the "near term" as companies scramble to lower their outlook for this year.

Scott Anderson, chief economist at Wells Fargo, is equally pessimistic, describing the bullish views of some market players as "bordering on delusional".
http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/04/14/bcngold114.xml

Banks in line for £40bn bail-out - paid for by the taxpayer
Rescue: The Bank England has been asked to take mortgages off banks' books

Vince Cable, the LibDem Treasury spokesman, said: "We cannot have a situation where the banks are able to privatise their profits and nationalise their losses.


"The Government must now insist on a orderly programme for identifying the losses in the banking system to ensure the banks themselves cover those losses.

"This looks like rewards for failure and irresponsibility."
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=559973&in_page_id=1770

Citigroup May Need to Sell Assets to Bolster Capital
April 19 (Bloomberg) -- Citigroup Inc. shareholders, cheered by a $5.1 billion first-quarter loss that wasn't as big as some analysts forecast, face growing concern that the bank may have to sell assets, reduce the dividend and attract outside investment to bolster capital.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aElaUvS1sxzw&refer=us


Talking heads cheer Citicorp’s earnings because Citicorp lost less than predicted by the Street, declaring now that the OTC derivative problem is over. Talk about world class BS!
-jim sinclair