Good Times
Published by Human Head on Wednesday, June 06, 2007 at 10:51 AM.Atlantic Free Press--
"At present, the “don’t worry, be happy” crowd still thinks the good
times will roll on forever. They don’t see that the US consumer is
running out of gas and won’t be able to sustain his gluttonous spending
spree much longer. He’s already stopped siphoning the equity out of his
home ($600 billion last year) and now he’s has started to max-out his
credit cards. (Credit card debt increased 9.2% last month alone!) Now,
US consumers are facing a blizzard of bad economic news — rising prices
at the gas pump, a 6.7% increase in food prices, and a sickly dollar
that keeps losing ground on the currency exchange. (Kuwait is the
latest country to announce they will be dumping the dollar for a basket
of currencies)
Currently, the US gobbles up two-thirds of the world’s credit each year
with no conceivable way of paying it back. That won’t last much longer.
Central banks around the world are increasingly hesitant to accept are
our flaccid greenbacks and the Chinese are the only ones who are still
buying our Treasuries. That’s mainly because it gives them power over
political decision-making in Washington. The truth is the Chinese are
planning to send the US into receivership and take over as the world’s
bank. With dollar-backed reserves of $1.3 trillion, their plan appears
to be going “full-steam ahead”.
The bottom line is that we are buried beneath a $9 trillion mountain of
debt and there’s no way to dig out. If there’s a break in the
liquidity-flows to our stock market — stocks will crash, unemployment
will soar, and we’ll be pulled into a deflationary downspin."
"At present, the “don’t worry, be happy” crowd still thinks the good
times will roll on forever. They don’t see that the US consumer is
running out of gas and won’t be able to sustain his gluttonous spending
spree much longer. He’s already stopped siphoning the equity out of his
home ($600 billion last year) and now he’s has started to max-out his
credit cards. (Credit card debt increased 9.2% last month alone!) Now,
US consumers are facing a blizzard of bad economic news — rising prices
at the gas pump, a 6.7% increase in food prices, and a sickly dollar
that keeps losing ground on the currency exchange. (Kuwait is the
latest country to announce they will be dumping the dollar for a basket
of currencies)
Currently, the US gobbles up two-thirds of the world’s credit each year
with no conceivable way of paying it back. That won’t last much longer.
Central banks around the world are increasingly hesitant to accept are
our flaccid greenbacks and the Chinese are the only ones who are still
buying our Treasuries. That’s mainly because it gives them power over
political decision-making in Washington. The truth is the Chinese are
planning to send the US into receivership and take over as the world’s
bank. With dollar-backed reserves of $1.3 trillion, their plan appears
to be going “full-steam ahead”.
The bottom line is that we are buried beneath a $9 trillion mountain of
debt and there’s no way to dig out. If there’s a break in the
liquidity-flows to our stock market — stocks will crash, unemployment
will soar, and we’ll be pulled into a deflationary downspin."
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