Could America be Pushed over the Economic Edge?

By Greg Hunter’s USAWatchdog.com

It’s official.  The U.S. transferred command of the Libyan no-fly-zone to NATO yesterday, but don’t think that ends U.S. involvement. Crienglish.com is reporting Secretary of State Hillary Clinton will be heading to London next week to discuss and coordinate military strategy.The story said, “Having eliminated Libyan air defenses, U.S. military officials said the campaign has entered a second phase that will focus on decimating Libyan leader Muammar Gaddafi’s ground forces. Coalition air strikes also increased over Tripoli, capital of Libya, with warplanes targeting fuel depots and local military installations.” (Click here for the complete crienglish.com story.)

So, it looks like America will still be on the hook both militarily and financially.  This appears to be a political move to give the appearance of less U.S. involvement in the Libyan war.  Nothing could be further from the truth because, the fact is, without the U.S. and its military might, the entire operation would fall apart.  It has been reported that some UK Ministers say this intervention in Libya could last “30 years.”  Yes, you read that right—30 years!  The Daily Mail reported this week, “Asked for an estimate, British Armed Forces Minister Nick Harvey said: ‘How long is a piece of string? We don’t know how long this is going to go on.  ‘We don’t know if this is going to result in a stalemate. We don’t know if his capabilities are going to be degraded quickly. Ask me again in a week.” (Click here for the complete Daily Mail story.)

Many are not happy about how Libya is going.  There are plenty of reports of infighting in NATO over how to proceed.  The Germans want nothing to do with the Libyan war and have pulled out.  Russian Prime Minister Vladimir Putin called the no-fly-zone over Libya a “crusade.” Online Journal reported Tuesday Putin said, “The Security Council resolution is deficient and flawed; it allows everything and is reminiscent of a medieval call for a crusade,” Putin told workers at a ballistic missile factory in the Urals region. “It effectively allows intervention in a sovereign state.”  (Click here to read the entire Online Journal post.)

If this bothers Mr. Putin so much, why didn’t he have his U.N. Ambassador simply veto the resolution?  Instead, Russia went along with the resolution by abstaining from the vote as did four other countries.  Is Russia giving the U.S. enough rope to hang itself?  The U.S. is already stuck in quagmires in Iraq and Afghanistan.  Consider the spike in fuel prices because of revolutions and unrest in the Middle East and North Africa that are far from over.  Could one more war push America over the financial edge into economic collapse?

Sound far-fetched?  Not if you listen to JR Nyquist.  He writes about the economy and politics and recently did a story highlighting a Pentagon report called “Economic Warfare.”  Nyquist writes, “The report suggests that unknown parties covertly exploited vulnerabilities in the U.S. financial system to help trigger a crash as part of a three-phase process which is yet underway. The report admits that contributing factors, such as high-risk mortgage lending and poor federal regulation, were at work. Nonetheless, the report says there is evidence that foreign agencies have also been at work, attempting to magnify U.S. economic difficulties. Supposedly, what the U.S. faced in 2008 was a “normal downturn” which should not have grown into a “near collapse” of the financial system.”  (Click here to read the entire JR Nyquist post.)

Maybe the U.S. will not need a push by the invisible hand of economic warfare as it could fall into an economic collapse and nightmare with a push from the calamity in Japan.  According to Jim Willie at Goldenjackass.com, the Japan disaster will cause many future economic problems.  One big one is Japan will be forced to sell Treasuries and other bonds to pay for reconstruction.  I touched on this recently, but Mr. Willie goes into great detail on how the Japan tsunami will cause an enormous financial tsunami.  The rest of the world will have to soak up the Treasury debt Japan unloads.  Mr. Willie wrote in his latest post, “QE will be global next.The central banker pact not only endorses the monetary hyper-inflation by the USFed, it extends it globally with a loud ring. . . .A vicious cycle has begun to take shape. Inflation will originate from the four corners of the earth, come in many forms, and have staggering effect on both the global recession and global price inflation. Assets and incomes will go into worse decline, while commodities including Gold & Silver rise powerful. Actually, Gold & Silver are money, the great anti-bubble. The USTreasury Bond will be under absolute siege for months until a climax conclusion . . .” (Click here to read the complete report from Mr. Willie.)

Japan will also need both hard and soft commodities to rebuild and feed its people.  This demand will put more upward pressure on prices for just about everything, and that includes interest rates.  America will be especially hard hit.  Folks should be heading for much higher ground, so as not to be swept away by waves of inflation.

Comments
  1. Sam

    Dear Greg,

    Darn good analysis.

    This country cannot afford yet another war, no matter what Obama calls it. (And a number in Congress are calling for impeachment, these being from his own party!)

    I knew about the same time you did that the Japan disaster would hit this country, but it is in more ways than one could imagine.

    First is the Treasuries, which I pretty much knew that Japan would sell since the IMF basically told Japan to take a hike. Of course, this country does not have the money, so like China, Japan will try to unload the Treasuries on other countries.

    Second is the “food crisis.” Apparently, this country imports a lot of seafood from Japan (thankfully, I hate the stuff!)

    There are those who say that the rebuilding will be great for this country, but not so fast there. Twenty years ago maybe, but ever since the majority of American businesses “off shored” during the Clinton administration, it will mean more business for those who produce the raw materials – these including South Korea (steel), Australia (foodstuffs). Perhaps some timber from this country, but we’ll see.

    What do you think?

    • Greg

      Spot on Sam. Thank you.
      Greg

      • Sam

        Dear Greg,

        Story on Drudge Report, from the Washington Times: increasing likelihood that Japan will sell U.S. debt for cash to rebuild.

        You called it!

        Congratulations!

        • Greg

          Thank you Sam.
          Greg

  2. markm

    Hello Greg,

    One term that usually happens in a situation like this is: Mission Creep.

    Special forces experts who happen to be former special forces officers, confirmed that we have troops in Libya “lasing” targets (Fox News).

    Why not Syria? Or Yemen? Or UAE? Or one of the many other civil wars going on around the globe.

    markm

    • Greg

      MarkM,
      Yes, “mission creep” all over North Africa and the Middle East. Thanks man.
      Greg

  3. Tom H

    “Although it is commonly believed that the war on terrorism is a noble effort to defend freedom, in reality,it has little to do with terrorism and even less to do with the defense of freedom. There are other agendas at work; agendas that are far less praise worthy; agendas that, in fact, are just the opposite of what we are told. The purpose of this presentation is to prove that, what is unfolding today is, NOT a war on terrorism to defend freedom, but a WAR ON FREEDOM THAT REQUIRES THE DEFENSE OF TERRORISM.” G. Edward Griffin

    Read full report here:

    http://www.freedomforceinternational.org/pdf/futurecalling1.pdf

    Oh yeah, and, you rock Greg! Had I told you that lately?

    • Greg

      Tom H,
      Thanks for the comment and link.
      Greg

  4. Hoppe

    Certainly, as Mr. Willie posits- “The central banker pact not only endorses the monetary hyper-inflation by the USFed, it extends it globally with a loud ring”,… is most likely the real reason behind this operation, as has been for other such military operations for generations. That is to put the sovereign deeper into hock with the Central bankers.Remember the war of 1812.

    Which is why, since it is global, why the US Dollar will not be replaced any time soon as the world reserve currency, as Noriel Roubini has described.

    Once you wade through Mr. Willie’s eccentric mix of similes and analogies, you see he is basically saying another financial crises is around the corner, but wait- Gold will not decline, as in 2008 (true gold bug). Yet, he says that the result of this gold protected hyper inflation, will be recession. Okay, explain that one.

    I believe precious metals will still increase in value against the major currencies, over time as will other precious commodities, such as farm land. However, another bout of financial crises will place downward pressure on those prices for some time- who knows how long.

    • Greg

      Hoppe,
      Economist John Williams says essentially the same thing when he predicts a “hyperinflationary depression.” In the Great Depression the money retained value but few had much of it. In a hyperinflationary depression few people have money and it eventually becomes worthless. The Fed is currently printing $75 billion a month to buy Treasury debt. How much will the Fed and the rest of the world have to create when Japan starts selling to raise rebuilding cash? I hope this helps.
      Greg

      • Hoppe

        Greg,
        The term “hyperinflationary depression.” is an oxymoron. The value of a currency cannot become hyper inflated if there is so little in circulation.. all previous instances of hyperinflation of a currency, “Weimar Republic, Argentina, have shown us how it works.

        Mr. Williams is inventing economic rules as he goes to support his hypothesis about the value of gold. Not necessary, but detracts from his credibility.

        • Greg

          Hoppe,
          Mr. Williams has been correct since I’ve been following him and I would not bet against him.
          Greg

          • Art Barnes

            Stagflation is more likely; inflation with low growth and poor employment – poor middle class screwed again. When the middle class loses its wealth to inflation and becomes the working poor, all is lost to the elite. I believe the elite wants the current economy, wall street in bull run as the middle class becomes slaves. A perfect economic tusami for the elite, they couldn’t have planned it better; the middle class’s loss is their gain. God help us and may we sharpen our swords or, at least build some guillotines.

        • Tom H

          Hoppe, you are assuming ( as is Ben Bernanke who has been wrong on 100% of his prognostications) that there is a difference between outright printing money and adding the money electronically. The banksters tell us (with a straight face, sans the quivering lip) that this time will be different because they are inflating the money electronically rather than through the printing press. IMHO, Mr. Williams does not believe Bernanke like you do. Rather than take BB at quivering lip face value, he is looking at the facts. The price of food, fuel, and all things except housing it seems, are going through the roof. Why? Not because there is less oil or food, but because there are way more dollars chasing every barrell and bushell. The recipients of this electronic money do not want to hold it, because they know 2 things: 1) the beneficiaries of newly created money are the ones who get it first, before it has caused inflation throughout the economy (study velocity of money). (2) They had better buy something real with it because its value is going to decrease dramatically and they want to get as much as they can for it. So they speculate in commodities, driving the price of food sky high and causing riots in places like, I don’t know, Egypt, Tunisia, Yemen, Jordan, Libya, etc. because they can’t afford to eat anymore as the USA exports its inflation through the World’s reserve currency.

          What you say can’t happen is already happening. This detracts from your credibility. You are right that all previous instances of hyperinflation have shown us how it works. This is the reason that it is stunning that you think it will somehow be different this time. The government is the entity inventing economic rules, not Mr. Williams. Mr. Williams is the one Patriot trying to give us a clear picture using the real economic rules rather than some mystic bunch of bullshit to maintain an empire of debt. Get a glove and get in the game.

        • MarkG

          Hoppe,

          Hyperinflation is not the same as inflation. The former starts due to widespread loss of confidence in the currency. A positive feedback sets in (i.e. “snowball effect”) where rising prices leads to lower confidence, which leads to higher prices, and yet lower confidence…. money velocity increases. Nominal price increases can be suppressed by money supply limits. However, the incentives to rapidly expand the money supply is overwhelming under these conditions. You cannot fully understand Mr. Williams’ position without understanding these incentives.

          • Reader

            100% perfect – This is also Mr. Jim Sinclair’s definition.

  5. Norm Ezzie

    Your latest post should be on every front page in America- read on every cable/news outlet,and hand delivered to those “porn stars” who occupy our Congress! I could state much more, when it comes to our Middle Eastern foreign policy- I’ll leave that to those 2 professional-lap dancers,who always operate behind the “curtain” since 1970- besides,they both think of this planet as a giant game of Chess…..they forgot one thing,The “Written-Word” is going exactly as it was written! For those skeptics,listen to the song,sung by none other than Johnny Cash titled: “Goin by the Book” (which was recorded in 1990) then you tell me who’s really in Charge!

    • Greg

      Thank you Norm and David Conrad!
      Greg

  6. David Conrad

    I am no fan of Obama but in this situation it appears that its damn if he does and damn if he doesn’t. I have a solution to the whole mess. By the end of this year, pull our troops back home …. From everywhere. Think that would save us some $$? Then just sit off the coast of these countries that hate us. Keep drones in the air 24/7. Then when some of these idiots start shouting and planning death to America, send in a not so friendly Tomahawk Missle to remind these folks that it is indeed time for death …just not America’s time. It is time to get out wonderful troops back home!

    • Sam

      David Conrad,

      Representative Ron Paul has suggested that already, but that’s okay. Paul believes that the overseas bases should close (how long does Germany and Japan have to be occupied, anyway?). Reduce the military to 100,000. They are there to DEFEND, not nation-build or act as an international Meals on Wheels.

      To this I add: get rid of all departments and bureaus not in the Constitution. Get rid of the 16th Amendment, and the IRS. Let’s go back to living off import duties (given what American retailers import, they’ll soon scream for “American made!”).

      Get rid of paper currency, it’s unconstitutional. Get rid of coins that are not at least 75% silver, or nickel, or copper. Have all coins redeemable in silver or gold (example: 100 copper pennies equals one silver dollar).

      Sorry to waffle on.

  7. B.

    I don’t care where you stand politically, please, call your public offical. Tell them we need to drill our own oil NOW. I dont know of a cheap fuel thats out there like oil folks. if there is, then bring it on..If not, get that oil pumping or we could be paying 10.00 for gas by next year….

    We can say whatever we want. America is in the middle east because of oil. Dictators are weathy in those countries because america,and the UK are buying their oil. We put up with it because we want their oil. We come down on them when their oil gets expensive.
    We have oil….Which country would you want to see drill for oil? We have laws,codes,EPA,OSHA. Most other nations have a guy making 3 bucks a day drilling for a substance they they will never use…
    This is such nonsence!!! Drill already!

    • Oldcoot

      Hi B.
      Remember old Al (Gore) wanted to raise gasoline prices to $5.50/gal by increasing the federal taxes. This is something the people won’t stand for. Despite his appearance of having a lack of grey matter, he’s preventing oil drilling, not only on our land, but also in the gulf. He, and his fellow waccos, will be getting the price up to the Gore number by not allowing drilling. Meanwhile, our trade imbalance will push us closer to the cliff’s edge. This must be their plan, for why else would they allow Brazil a drilling permit in the Gulf. Oldcoot

  8. Larry W. Bryant

    == What Price Liberty? ==

    Imagine: each of those U. S.-made cruise missiles with a price tag of $1M-plus! Couldn’t we have bought ‘em for no more than half that price from, say, China? — Larry W. Bryant (25 Mar 11)

  9. Tom H

    “The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title.”

    – Anonymous

    • Greg

      Thank you Tom H for the info and comments.
      Greg

  10. Tom H

    Friday, March 25, 2011
    The Comex Goes “Extend And Pretend” On JP Morgan’s Paper Silver Short
    http://truthingold.blogspot.com/2011/03/comex-goes-extend-and-pretend-on-jp.html

    “Our fund, however, stood for delivery of 3 contracts this month. We were given notice on one of them right after first notice day and that silver was made available by HSBC to be picked up by our carrier and delivered to our private depository within the appropriate timeframe. HSBC, however, changed the rules on the other 2 contracts. We were notified that the silver for the other two contracts was being delivered last week. Why they waited 3 weeks to notifiy us on the other two is open for conjecture. HOWEVER, this time HSBC informed my partner that in order for us to send a carrier to pick up the bars he had to fill out a bunch of paperwork and send a copy of his driver’s license and that it would take HSBC five days to process everything. Today being the 5th day, we called for a status update. They informed him that he had to send them a copy of his passport because his driver’s license had expired. I’m not sure how long it would have been before they notified us of that fact if we had not called.”

  11. Lisa

    Mr. Hunter,

    I have been a fan since your TV days. I always felt you were a straight shooter and now that I found you on the internet, I see you are still that and more (all in a good way mind you).

    I do have a few points that I hope you will address for me.

    During any given administration, we are unfortunately never told the truth about what is really going on and in turn are always at risk of some sort of catastrophic disaster (i.e. war, terrorism, financial meltdown and more). I guess what I am getting at is that ignorance is at times bliss in order to keep ones sanity in a chaotic world.

    We are indeed going through some of the craziest times I can ever remember and although things are crazy, do you really believe we will all NOT get through this as a society?

    How can the entire country go under? There are too many businesses, people and groups that are indeed doing very well in this down economy and they would all lose a ton of money and probably most of these people do NOT have any gold or silver or very little.

    Then you have all of the people and businesses that aren’t doing well and are you saying they would be doing even worse? How much worse can it get for them? Some are broke, unemployed, homeless and without any financial means as it is.

    There have always been major concerns with the world governments, but do you really think that it is going to be Armageddon and that only gold and silver will protect us? If it gets that bad, how in the world will gold or silver protect us.

    It is already to costly to buy and could probably only afford silver at this point and I can’t believe it will actually go up much higher. How can it. It must go down again at some point. It can’t stay on an upward trend for the next year. What do you think Mr. Hunter?

    Best Regards,
    Lisa S

    • Greg

      Lisa,
      Here are a few facts for you to consider. The Fed is creating $75 billion a month to buy U.S. gov. debt to finance at least 70% of the ongoing U.S. budget. It is also holding mortgage interest rates artificially low (around 5%.) If the Fed was not doing this Mortgage rates would be 8% or 9 % according to some experts. 90% of all mortgages issued are coming from the Fannie, Freddie and FHA (please note government.) The stock market is being propped up by Fed money creation according to the Wall Street consulting firm Trim Tabs. We are now involved in 3 separate wars. I ask you ,what could go wrong? Let me tell you. $7 trillion dollars are held outside the country. What do think is going to happen when these dollar holders realise that the U.S is simply printing money to fight wars, pay bills, prop up the stock market, hand out mortgages and suppress interest rates? They will sell and that could cause a sudden devaluation of the U.S. dollar. Think rising gas and food prices on steroids. Even if there is not a sudden dollar sell off, the currency is being devalued and the inflation you are seeing now will only get worse–much worse. Yes Lisa, the U.S. is in deep (as in never happened before in human history on this scale) financial trouble. Investing in silver and gold is not a money making trade, it is insurance against a currency crisis we will surely experience. In a year this “insurance” will look very cheap. I do not know your financial position so I cannot and will not give specific recommendations. I will say people should get their financial house in order and rig for bad weather. Please go back and read the many posts that outline the problems we face in greater detail. I hope this helps you. Thank you for supporting this site.
      Greg

      • Art Barnes

        Food inflation is here, ask anyone who has a budget. Yesterday, the butcher for a large chain store, a friend of mind, told me that on every cut of meat the wholesale price has had a 10% increase overall in the just the last month. He said that people are buying less expensive cuts to try and dampen their food cost. Gas is up,
        clothing is rising, inflation on every front. Inflation is here, and if you can’t buy precious metals, at least start buying or obtaining something in which to trade with, food, ammo, propane fuel, wood, etc. – the “s..t is allready at the fan” so don’t get caught facing the other side.

        • Art Barnes

          Three of the 5 gas stations in my town went to $4.05 for regular unleaded on Saturday, I’m sure the other two will follow when their next tanker of fuel arrives. Inflation is alive and well in California no matter what MSM says. Of course, if you sit on million dollar plus jobs like the central bankers and the rest of the elite no problem.

          • Greg

            Thanks for the reporting Art. What state do you live in?
            Greg

  12. slingshot

    I can tell you this is a bell ringer and as the worlds policeman and
    great exporter of inflation, by the world reserve currency, it may come down as to whether the world would do such an act. That is push us into the abyss! This is no more than an overt operation. There are many covert ops that never reach the light of day.
    As more of these Days of Rage rise up, the United States and Western Nations are going to have to deal with a rising Islamic State.
    We can give them all the money and all the weapons for suppression of the human Masses,still the numbers are staggering.
    The West has failed to realise that these people have been throwing stones at each other for thousands of years and that a few glimmering lights of democracy in these countries does not make it a Democratic Government. Add in Jihad and a few thousand dead does not matter, for they all go to heaven in their belief.
    I always wondered when we sent female, Sec. of State to countries, where women were of lower statis, what was going through the mind of the foreign dignitary when they shake hands. Is it an insult or are we forcing an issue? Could you entertain the notion that the west have
    been living off the riches, supplied by these countries and they are so destitute that a chance of knocking the WEST down a few levels would be so enticing?
    I am impressed in the way it has all started by one man on the internet which gave hope to millions in that area of the world. Maybe not our kind of hope, but hope none the less. If they can do it, we can do it. The West doesn’t have much of a plan but to use force to drive out a dictator they have embraced.
    One side of the world they can use oil as a weapon. DEMAND Payment in gold/ Dinar. On the other, Japan to sell US bonds to raise money to rebuild.
    China, slowly selling off USBonds as we buy them back, monetising more debt, and China buys world resources with FRN’s that creates more inflation.
    We Americans/West, have made fun of the Indians, Arabic, Chinese and Latino Nations ( They are next).

    I just have to ask,
    How’s the $4.50 a gallon of gas doing for ya?
    Who is stupid now?

    • Greg

      Thanks Sling.
      Greg

  13. Lisa

    Thank you Mr. Hunter. I appreciate your time and advice. I guess I am maybe just in shock at the though that everything can go to pot in an instant. Too many people would be devastated and no one is ready for this. I still don’t think silver can go up indefinitely over the next year or as high as some experts thing, over $100 an ounce. What do you think?

    • Greg

      Lisa,
      Silver and gold are insurance not speculation. Please take the time to read the site. All the best.
      Greg

    • Tom H

      Lisa, Greg is too nice. What you suffer from is normalcy syndrome. Know your history or you are condemned to repeat it. Go to Google and do a search on hyperinflationary events and fiat currency collapses. Most notably, the Weimar Republic. While I realize you just can’t imagine your government doing this to so many people, they’ve already done it. What you are experiencing right now was put in motion in 1913. Our government and elected officials don’t run the country anymore. We live in an oligarchy and your God given rights have been stolen by a bunch of evil bankers perpetrating a scam that has been going on since Jesus through the money changers out of the temple. If you want to save your family from tyranny, do some research and take action to save yourself. If you want to become one of the countless millions killed by the warped policy of bankers throughout history, keep sitting on your couch thinking there is no way your government would ever do this to you. If you can’t afford silver and gold, store some food and potable water. And always remember, money is an illusion that only has value because you place value upon it. Human relationships are the most valuable commodity in your life. Make good with the people you love, you are going to need them! Good luck Lisa!

    • Sam

      Dear Lisa,

      Silver and gold are MONEY. They are HARD money, as opposed to paper currency, which is nothing more than an I.O.U. for hard money (thank you Coin Collecting merit badge).

      At one time, you could exchange paper currency for a like amount in gold or silver. Currency which had a blue seal was a silver certificate, whilst one with a red seal could be exchanged for gold (I’ve got samples of both in my collection). Moving away from gold and silver as money, as well as making it “illegal” to exchange paper currency hard money, is unconstitutional (please read U.S. Constitution, as well as the Federalist Papers, the official footnotes of the Constitution).

      Silver and gold are only “going up” because of the decline of the dollar. The more the dollar is inflated, the higher gold and silver go up. I don’t know if silver will be $100 an ounce, but it’s going back up to its 1982 price of $50/ounce, FAST!

  14. Kevin

    Greg, I hope this helps people understand? On my computer desk is a small leather pouch and it contains $14.00 of U.S. pre 1965 90% silver coins. This is 10 oz of silver according to Wikipedia. If I took this to a bank, they would give me $14.00 of paper, and no more.

    If I took this to a coin dealer today, 10 oz of silver @ $37.32 an oz, he would give me about $370.00 for it. Divide $370.00 by $14.00 and you get 26.428. This is how much our money has been degraded. Our money is now worth less than 26 times it was I 1964.

    This is the way I understand it, I hope I didn’t miss anything? Did I?

    Kevin

  15. Greg

    Lisa,
    If you read this site it is full of my personal thoughts. Do your home work.
    Greg

  16. Lisa

    This will be my last comment I ever leave on your blog. You were rude enough to say “do your homework”, but not honest enough to publish my comment. Here is what I mean by honest, you like to hear yourself preach and that is it. When someone as myself who truly doesn’t understand these things asks a question, I get the runaround, censored or absolutely rude answers. I can most definitely spend the next few weeks reading your blog to sift through what you mean. But if you don’t want comments. Turn that option off. If you don’t want people that will ask you questions as I did, get off of the internet cause we are quite abundant. You of course won’t be publishing this comment either as you enjoy running your blog as a dictator that controls the flow of content and loves censorship (quite ironic based on what you preach), but that is ok as I have a screenshot of the comment I left that said awaiting moderation and also took a screenshot of your answer to my question. All I can say is this, have you ever heard the saying that when someone likes something they share it with a few people and when they get burned they share it with everyone. Well I plan on letting everyone I know how rude you were to me and how you censored me cause you don’t want your readers to see what I wrote. I may need help with my financial planning but you definitely need help with customer care and learning how to be a people person.

    • Greg

      Lisa,
      I did not post your comment because I already answered your question. The answer to your question was the longest to anyone on this post. I’m sorry you didn’t like my answer. I did not mean to be rude when I told you to do “do you homework.” That is what I say to anyone investing their hard earned money. I do not have customers. I have readers and this is a free site. Please don’t waste your time being angry, spent it putting your financial house in order. I wish you only the best in life and I hope you continue to read this site.
      Greg

  17. Mark

    Greg,
    Clearly you support gold and silver as a hedge against the dollar’s fall. It is prudent to have some precious metals set aside as insurance; however most people have tens and hundreds of thousands of dollars tied up in retirement funds primarily invested in stocks. Would you please consider doing an analysis on what happens to a stock market during devaluation? What happens to stock prices and dividends? Are multinational companies protected in some way? We need to have a grasp of this; it’s so abstract that we can’t get our minds around it to prepare properly.
    Best regards,
    Mark

    • Greg

      Mark,
      For awhile even in Wiemar Germany (in the early 20’s) the stock market their took off, but when the German currency collapsed so did the stock market. Here’s a link to what money manager Howard Davidowitz said Friday: http://yhoo.it/fJ4mIg In short, he says, “The U.S. dollar has never been at greater risk.” I am not a market expert, but the Wall Street market research firm Trim Tabs says the stock market is being propped up by Fed money printing. (It’s called QE2 and it amounts to $75 billion a month .) Any market being propped up by the governmant is not a market I would feel comfortable being heavily invested in. The Trim Tabs quote comes from CNBC. Here is a link to the story I wrote here on USAWatchdog.com that contains the video that quote came from: http://usawatchdog.com/state-of-denial/ I hope this helps you.
      Greg

  18. Bob

    oil control is what we base the dollar on. That’s why the Fed buys off companies and overseas banks for the right to control the oil currency. The inflation is cause by to many needed people who need thing but cant afford them. So the people who buy the over price food are being soaked. Just like my over price healthcare, I pay more then my share for the ones who pay nothing can get help. IF your on food stamps and walking to work, were you make 8 bucks an hr. Your more then likely are getting rent help. Inflation is the only way to tax the poor,but it hurts the middle folks the hardest.

    • Tom H

      Bob, inflation is not the only way to tax the poor. There is also the cigarette tax, alcohol tax, powerball, lottery tickets, tax on your telephone, cable TV, and gasoline. I’m just sayin’……… Inflation is just the most insidious.

  19. nm

    Greg said the following”

    “What do you think is going to happen when these dollar holders realize that the U.S is simply printing money to fight wars, pay bills”, etc, etc.

    1) Do they not realize this is taking place now? Surely, they are not fools?

    2) If and when they realize what’s happening, who will they sell the dollars to? (assuming no one will want worthless currency).

    • Greg

      NM,
      I am sure some do. Look at the price of gold and silver. There is $7 trillion held outside of the U.S. and countries like China and others want to vent this off slowly as to not cause a sudden drop in value of the dollar. This does not rule out a dollar panic if every country heads for the exit at the same time. This is the wild card of wild cards. Lots of people still take dollars now, but who knows what will happen in the future?
      Greg

  20. Eric

    Its not inflation, its the desinged destruction of the US dollar, and the timeline has been advanced to this spring! One day you drive to work in the morning thinking about what supplies to buy at the grocerie stores, when work is through you find an odd traffic jam on surface streets centered around your neighborhood super market. You feel the tensness in the air as you pass through the market door, folks pulling two baskets each piled high with goods. The shelves of goods melt before your eyes. Stockers are busily switching out pricing cards on the shelves for the remaining goods. Sinking feeling for sure! Accompanying that feeling is remembering the curious statement of Treasury Sec Geithner last year-that he would support the US Dollar no longer being the reserve currency! It was curious and dumbfounding than, you see the reality before you on this afternoon shopping errand spring of 2011!
    It can hit anytime-like an earthquake! We are seeing the warning signs but we’ll still be caught off guard in the imidiacy of it all!

  21. Eric

    @$%^^$#! This is scarry stuff! Never before have I been so aware to the reality of it all! Never before have I been so scared for my nation- more than 9/11 or October 2008! The edge of the cliff is in sight for the majority of the nation’s middle class!

  22. Robot Trader

    Once again, retail stocks, REITs, consumer discretionary stocks are leading the tape. The economy is getting better, not worse.

    And Mr. Sinclair’s gold stock (TRE) and a plethora of other like AEM are mired near 52-week lows, unable to get any traction.

    I’m wondering why so many of the perma-gloomers don’t comment on this price action, as it appears that the market is discounting a substantial recovery in consumer spending and jobs, and the gold mining stocks are discounting a weaker gold price and an abatement in inflation trends.

    Another factor to consider is that all the gold bugs who are cheering on an economic collapse are at the same time cheering their own demise, since any financial accident that triggers deleveraging is likely to crush commodities, including gold, and especially gold mining stocks.

    Just to set the record straight with Mr. Sinclair, who has repeatedly avoided several requests to address these issues.

    • Greg

      Robot Trader,
      So, you are just going to ignore the money printing by the Fed ($75 billion s month) and 90% of the mortgage loans that are given out by the government? Also, the government sanction accounting fraud at the banks. that now carries the nick name “mark to fantasy” instead of true “mark to market?” Oh, here’s a new one for you! Nearly (39%) of the home sales last month were foreclosures. Let’s not forget that retail sales increases are in reality inflation yet they are reported as net increases. I have documented this a few times in articles with sources in the recent past. The economy is getting better only if you ignore the facts, and believe the government’s phony unemployment, GDP and inflation numbers. Thank you for your comment though.
      Greg

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