Tuesday, November 16, 2010

International Major Market Crash From QE2 May Come Soon

The U.S. owes over fourteen trillion dollars - that's over $90,000 owed by every U.S. taxpayer.

In August 2007, I predicted on our radio show that a major liquidity crisis was about to hit the U.S. and have a major impact on the market.  I am beginning to see data that suggests the possibility this condition may recur, and the Federal Reserve $600 billion quantitative easing (QE2) may trigger it.  It is hard to imagine how we have gotten ourselves into this position. While the USA has a population of 310,700,000, remember, less than half the population actually pays taxes. Taking this reality into consideration, every current taxpayer owes nearly $100k of future earnings towards the national debt. It is a truly scary situation that must get addressed before we face an international bond crisis of epic proportions. We may find ourselves unable to sell our treasury debt at reasonable rates, and we could even lose our cherished AAA credit rating. [more...]

Wednesday, November 10, 2010

Paul Krugman’s Crack Fix for the Economy

By Joseph Klein

More crack cocaine, anyone? A narcotic as potentially addictive as crack is essentially what the Federal Reserve is administering to our economy, with its recent decision to infuse $600 billion more of new printed money into our system. The Federal Reserve is monetizing the federal debt - printing more money with which to "cover" it.  Nevermind that this strategy has led to hyper-inflation and the devaluation of currency every time it has been tried in world history. Yet left-wing economists like Paul  Krugman don't think that the Fed went far enough to get the job done in stimulating our economy. [more...]