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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (107388)	2/18/2010 7:35:57 PM
From: Skeeter Bug	3 Recommendations Read Replies (1) \| Respond to of 110194

>>The US government will run a $1.5 trillion dollar deficit.<< incorrect. they are planning to run that big of a deficit. they may or may not actually do it. that decision has yet to have been made. >>the States are insolvent.<< yes. >>Public pension plans are insolvent.<< yes >>The 'hold-your-nose-and your-your-breath' approach to forestalling a vicious mark-to-market cleansing of the housing market with its endless millions of bankrupt and underwater homeowners is unsustainable, and the consumer and lender of last resort -- China -- is starting to smell the green tea.<< i think china is a net seller, but i'm not sure who will foot the bill for the housing mess - i'm leaning toward the tax payer at this point. in case you didn't know, the banks don't care about our losses. well, other than the bigger our losses, the cheaper they get to buy up our assets in a depression. ?>>That leaves Washington with one of two choices<< wrong. washington doesn't control the money in this nation. bankers do. bankers often jobbed government when it was in their interest to do so. in fact, presidents that stood up and opposed banker control of the money supply were very often greeted with the business end of a fire arm. 1. andrew jackson survived an assassination attempt when two (redundancy - these banksters aren't stupid!) guns misfired as they were pressed against his gut. the attempted assassin walked due to an insanity defense. 2. james garfield wasn't so lucky. 3. abraham lincoln (green back - money not backed by debt nor controlled by bankers) didn't fair so well, either. so the question boils down to what is in the best interest of the banksters and what will they do with the nation's money supply. they have inflated up to this point in an effort to save themselves. everyone else is pretty much on their own. are they safe yet? they've been working feverishly for 1.5 years to dump the losses on the tax payer... is that process done? >>-- allow market forces to drive interest rates much higher and brace for the inevitable consequences of debt default that will wipe out the net worth of owners of loans gone bad<< that would most likely be the tax payers - and this would allow the cash heavy banks the perfect opportunity to buy real assets with dollars for literally pennies on the dollar. remember, bankers control the money, not government. >>and wipe out the asset values that to this day are being propped up by easy credit,<< owned primarily buy the sheeple at this point, given the banks have transferred trillions in loans to the government (tax payer). the banks have tons of cash. >>OR, print bogus bills in quantities so large that the dollar crashes.<< which, btw, would eventually cause a run on the banking system (everyone wants to escape collapsing dollar) and collapse the banking system - what every banker - you know, the guys who control the money supply - would reasonably avoid at almost all costs. >>This will be a primarily political decision<< i disagree. i think it will primarily be a business decision by the people who control the money supply in this nation - the uber bankers and their minions over at the private federal reserve. >>-- which one sounds more likely to happen?<< i'm leaning toward collapse as i see that as a BIG WIN for the banksters and i see hyperinflation as a BIG LOSS for the banksters - and the banksters will decide which way we go as they control the money supply. >>Exactly --<< not exactly. maybe (i don't completely discount it - my eyes are wide open looking for it), maybe not. >>and that is why gold is where money is heading even as the IMF announces its next big dump of its only marketable asset.<< it has nothing at all to do with the market being up and gold being further off its recent top than the market is off its top. -lol- i'm not anti-gold, i'm buying some up some decent bullion positions shortly, along with an equal, if not a bit larger, short position in S&P. i view gold as collapse insurance and insurance against moving to SDRs or similar as the world's new currency. if super inflation hits, it will also come in handy. maybe something happens where the banksters don't get their way and their hoards of cash get devalued. so much risk... not so much reward. i think it could go either way, and i want to be prepared instead of being locked into a paradigm that might end up being quite the punishment. PS - did you ever think the banksters might using the government to flash the inflation card so that the banksters can get into deflation plays on the cheap? maybe, maybe not, but don't arbitrarily ignored the possibility - these SOBs are as dirty as dirty gets.