Fed Encourages Runaway Debt as “Minsky Moment” Approaches

By Clint Siegner – Re-Blogged From Gold Eagle

Federal Reserve officials like to pretend they can use interest rates like a motorcycle throttle on the U.S. economy. They can either rev things up by dropping interest rates or slow things down by moving rates higher.

The public has been led to believe the central planners can do whatever is needed with rates to keep things purring along.

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The Dollar – King Rat Of Failing Currencies

BY Alasdair Macleod – Re-Blogged From Gold Eagle

The explanation for the sudden halt in global economic growth is found in the coincidence of peak credit combining with trade protectionism. The history of economic downturns points to a rerun of the 1929-32 period, but with fiat currencies substituted for a gold standard. Government finances are in far worse shape today, and markets have yet to appreciate the consequences of just a moderate contraction in global trade. Between new issues and liquidation by foreigners, domestic buyers will need to absorb $2 trillion of US Treasuries in the coming year, so QE is bound to return with a vengeance, the last hurrah for fiat currencies. However, China and Russia have the means to escape this fate, assuming they have the gumption to do so.

Introduction

It may be too early to say the world is entering a significant economic downturn, but even ardent bulls must admit to it as an increasing possibility. Financial analysts, both bovine and ursine, face a complex matrix of factors when judging the future effect of any downturn on currencies, and of the prospects for the dollar in particular.

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US Government Debt Bomb Much Higher Than Americans Realize

By SRSrocco – Re-Blogged From Silver Phoenix

The U.S. Federal debt bomb continues to increase, even with the government shut down.  In just one day, the U.S. public debt increased $50 billion on Jan 15th.  While the total outstanding Federal debt has now reached nearly $22 trillion, it doesn’t include all U.S. government debt.

That’s correct… there’s a lot more debt than Americans realize sitting on the balance sheet of the U.S. Government.  For example, there are other obligations such as U.S Government Agency Debt that isn’t well-known.  According to the USGovernmentSpending.com website, U.S. Agency debt is the amount of outstanding debt issued by federal agencies (such as FHLB and GNMA) and government-sponsored enterprises (such as Fannie Mae and Freddie Mac).  The amount of U.S. Agency debt

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US Government To Fork Out A Half Trillion To Service Its Debt In 2018

By SRSrocco – Re-Blogged From Gold Eagle

The US Government is going to surpass another significant milestone this year.  According to the recently released data from the TreasuryDirect.gov, the government will fork out a stunning half trillion dollars just to service its debt in 2018.  Unfortunately, as U.S. interest rates rise, along with ever-expanding public debt, the cost to service the debt will continue to increase.

In just the first nine months of the year, the US interest expense has increased by an additional $40 billion.  Last year, the U.S. Government paid only $375 billion to service its debt from October to June, but this year it has jumped to $415 billion:

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Speculation On Hyperinflation

By Gary Christenso – Re-Blogged From http://www.Gold-Eagle.com

Hyperinflation Myths:

  1. Hyperinflation occurs in banana-republics and not modern western countries.
  2. Hyperinflation cannot occur in the United States because the U.S. issues dollars – the reserve currency.

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Which Has The Bigger Economy: Texas Or Russia?

By Frank Holmes – Re-Blogged From http://www.Silver-Phoenix500.com

You’ve no doubt heard that everything’s bigger in Texas. That’s more than just a trite expression, and I’m not just saying that because Texas is home to U.S. Global Investors.

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US Public Debt Surges By $175 Billion In One Day

By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com

After the U.S. Government passed the new budget and debt increase, with the President’s signature and blessing, happy days are here again.  Or are they?  As long as the U.S. Government can add debt, then the Global Financial and Economic Ponzi Scheme can continue a bit longer.  However, the days of adding one Dollar of debt to increase the GDP by two-three Dollars are gone forever.  Now, we are adding three-four Dollars of debt to create an additional Dollar in GDP.  This monetary hocus-pocus isn’t sustainable.

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