Greece has a sovereign debt problem. The bonds of the Greek government have been downgraded by a major rating service. Their prices have fallen sharply in the market. This means that the risk is high that the government will default on its sovereign debt.
The interest rates that the Greek government must pay in order to borrow have risen sharply. This is worsening the government’s solvency and budget problems.
A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt. When that day arrives, the game will be over. Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries. The U.S. dollar has been the default reserve currency of the world for decades. All over the globe it was seen as a strong, stable currency that was desirable for international trade. ... (more)
May 26 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for the global economy, financial markets and Federal Reserve policy.¶ Faber spoke with Bloomberg's Carol Massar in New York on May 25.
After the 2008 financial collapse, many of us called on politicians to let the market correct itself. The government’s expansion of the housing sector and the Fed’s artificially low interest rates caused an unsustainable and thus ultimately destructive boom, which eventually leads to a bust. This explanation of the business cycle won F.A. Hayek the economics Nobel Prize in 1974.
Two years ago, we needed a recession, including falling prices and wages, to reallo... (more)
The federal government once again has reached the limit of its legal ability to borrow money, meaning it cannot issue new Treasury debt without action by Congress to increase the debt ceiling limit. As of this month, our “official” national debt – which doesn’t include the staggering future payments promised to Social Security and Medicare beneficiaries – stands at $14.2 trillion.
The debt ceiling law, passed in 1917, enables Congress t... (more)
Schiff Report Video Blog May 20th 2011
NIA touts penny stock Mega Precious Metals based solely on its "inferred" 1.2 million ounces of gold. However, NIA knows that "inferred" resources are practically meaningless. More important, they also know that their members, not being sophisticated gold investors, have no clue what "inferred" means and they exploit that i... (more)
I think this is my favorite part from their (non)response.
"There is a reason why NIA's membership base is growing by leaps and bounds and far exceeds this stock broker. NIA's President spends 12 hours per day studying the economy and researching stocks. His number one goal in life is not making money for himself, but is preparing Americans for hyperinflation and helping as many Americans as possible survive and prosper during the currency crisis that is ahead."
"It’s the person who would sell his soul for a nickel, who is loudest in proclaiming his hatred of money–and he has good reason to hate it. The lovers of money are willing to work for it. They know they are able to deserve it.
“Let me give you a tip on a clue to men’s characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it.
“Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter."
Capitol Police recently arrested 89 protesters from the disability rights group ADAPT for occupying the rotunda of the Cannon House Office Building. They were demonstrating against the proposed changes in Medicaid in the recently passed House budget resolution that would reduce the program’s funding and turn it into block grants to the states. “Block grants kill,” read some of the protest signs. ... (more)
Ma 18, 2011 - Euro Pacific Capital President Peter Schiff explains why U.S. membership to the IMF is wasting billions of taxpayer dollars and compromising our sovereignty.
According to the Tax Foundation, tax freedom day came on April 12th this year. This means that everything the typical American taxpayer earned from January 1 to April 11 went toward meeting his total federal, state, and local tax burden.
Of all the taxes Americans are saddled with, the federal income tax is the most objectionable. Like most, if not all of you, I grudgingly filed my 2010 income tax return before the April 15th deadline last month. And although most... (more)
Volatility is just part of the market, says Euro Pacific Capital President Peter Schiff. While speculation could smooth this out, however, that isn't the case right now. Irresponsibly money printing is damaging the dollar, and as currency is continued to be produced in America and elsewhere, commodity prices have nowhere to go but up. While the World Bank says the glob... (more)
Justin Lahart with the Wall Street Journal wrestles with the definition of ‘inflation’ in his article “Using a Dictionary to Define Inflation Can Spell Trouble.” Lahart writes that up until 2003, Webster’s defined inflation as printing money. Since the 2003 edition, Webster’s defines inflation as “a continuing rise in the general price level.”
Mainstream economists say that only those out-of-step define inflation as i... (more)
If you want to know more about the things in this documentary, I would recommend going to the source, Peter Schiff. For whatever reason, they fail to give him any credit. - Chris, InfoLib
Today the U.S. government officially borrowed beyond its $14.29 trillion statutory debt limit. And even though the Obama administration has assured us that accounting gimmickry will allow the government to borrow for another few months, the breach has given seeming urgency to Congressional negotiations to raise the debt ceiling. Republicans are making a great show of acting tough by linking their “yes” votes with promises for future budget cuts (that could even slow the rate of debt ... (more)
THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.
[...]“There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe
