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To: ChanceIs who wrote (143592)	1/10/2011 9:52:50 PM
From: ChanceIs	1 Recommendation Read Replies (1) \| Respond to of 206093

Virginia Creates Subcommittee To Study Monetary Alternatives In Case Of Terminal Fed "Breakdown", Considers Gold As Option >>>Holy chit Batman. Armageddon closer than I thought!?!? I will trade you a gallon of diesel for that loaf of bread and if you walk my dog every working day at noon. I mean the Virginia legislature is discussing this because they are bored, right???<<< Submitted by Tyler Durden on 01/10/2011 19:29 -0500 In what may one day be heralded as the formal proposal that proverbially started it all, the Commonwealth of Virginia introduced House Resolution No. 557 to establish a joint subcommittee to "to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System." In other words, Virginia will study the fallback plan of a "timely adoption of an alternative sound currency that the Commonwealth's government and citizens may employ without delay in the event of the destruction of the Federal Reserve System's currency" and avoid or "at least mitigate many of the economic, social, and political shocks to be expected to arise from hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System." Most importantly as pertain to the currency in question, "Americans may employ whatever currency they choose to stipulate as the medium for payment of their private debts, including gold or silver, or both, to the exclusion of a currency not redeemable in gold or silver that Congress may have designated 'legal tender'." Whether this resolution will ever get off the ground, and actually find that the world is at great risk should gold not be instituted as a backstop currency, is irrelevant. The mere fact that it is out there, should provide sufficient impetus to other states to consider the ultimate Plan B. We urge all legislators to carefully read this resolution. zerohedge.com

To: ChanceIs who wrote (143592)	1/11/2011 10:12:00 AM
From: Dennis Roth	1 Recommendation Read Replies (1) \| Respond to of 206093

OT: The Debt of Nations 7 January 2011 - 84 pages citigroupgeo.com More Fodder to feed your fears. excerpts: ... in our view, the consolidated Irish sovereign and Irish domestic financial system is insolvent — the Irish banks are ‘too big to save’ for the Irish sovereign. The Irish sovereign cannot ‘bail out’ the banks from its own resources and make its own creditors — the owners of Irish sovereign debt — whole. In addition, a bail-out (permanent fiscal transfer) from EA/EU partners or the ECB on a scale sufficient to fill the solvency gap is most unlikely. Therefore, either the unsecured and non-sovereign-guaranteed creditors of the banks, or the creditors of the sovereign (including holders of sovereign-guaranteed bank debt), or both, will likely eventually have to accept sovereign debt restructuring with a net present discounted value (NPV) of debt service haircut, even if this is not a condition for accessing the EFSM or EFSF at present... ...Greece’s sovereign is manifestly insolvent, in our view, all the more so after the recent public debt and deficit revisions. As long as Greece remains sufficiently compliant with the conditionality of its EA/IMF support programme, sovereign debt restructuring is likely to be postponed until mid-2013, when its EA/IMF programme expires. At that point, it is likely to be transferred to the EFSF or its successor, the ESM, and its debt may be restructured, including NPV haircuts... ...Outside the euro area, the US and Japan likely cannot continue to ignore issues of fiscal sustainability... ...Instead, the Congress and the White House agreed to pass a short-term fiscal stimulus without any associated credible commitment to reverse, through medium-term fiscal tightening, the impact of the stimulus on the federal budget deficit... ...In Japan, no serious discussion of fiscal consolidation is taking place as yet, and there is no evidence of actual consolidation. It too, is piling Pelion on Ossa by recently passing another small fiscal stimulus . Relatively high debt levels and funding requirements — by emerging economy standards — in Hungary imply that the Fidesz government needs to shift its attention from confrontational rhetoric and one-off populist revenue measures towards effective measures to rein in public spending. Argentina-style raids by the state on private pension funds are unlikely to provide a stable source of sovereign funding...