Good stuff, albeit understandably similar to Ryan’s speech last night, right down to the setting and studiously soft-spoken delivery. Even so, I want to promote it as a way of patting him on the back for floating his proposal for $500 billion in cuts this year. That plan is dead on arrival, needless to say, but passing it isn’t what Paul is after. What he’s trying to do with that eyepopping number is communicate the magnitude of the problem to the public in hopes of moving the Overton window on spending — because if this new Gallup poll is right, it’s going to need a lot of moving. And not just among Democrats, either:
Not a single point’s worth of difference between Republicans and Democrats on Social Security despite fiscal responsibility having rocketed to the top of the conservative policy agenda over the past two years. I don’t know how else to account for that except as a near-catastrophic failure by prominent Republicans to explain even to their own base that eliminating earmarks and cutting NPR’s funding and canceling a pie-in-the-sky defense project or two isn’t remotely equal to the task of guaranteeing sustainability. Case in point: Not only didn’t Ryan squarely address Social Security and Medicare last night (“the politics of evasion,” Ross Douthat calls it) but even a fearless deficit hawk like Paul, speaking only to an online audience, didn’t go after them here. Anyone who’s serious about balancing the budget long-term must support entitlement reform, no matter how unpleasant the prospect might be, but rarely does the public hear that point made by a prominent politician. And the entirely predictable tragedy of last night’s SOTU, as Tom Coburn argued in his op-ed this morning, is that only leadership from the most prominent politician of all is realistically capable of moving public opinion on this — yet that leadership was almost entirely absent last night. Writes Yuval Levin of the missed opportunity, “This speech was worse than bland and empty, it was a dereliction of duty.” And here’s Matt Welch:
[T]he president, though he is much more serious on this issue than a huge swath of his political party, is nonetheless not remotely serious about this issue. Vowing to cut $400 billion over 10 years (a plan that, judging by the two people clapping when he proposed it, will likely be cut to ribbons if it survives through Congress), at a moment when the deficit for this year is more than three times that, indicates that Democrats (and a helluva lot of Republicans as well) are hunkering down in our awful status quo–half-heartedly tinkering around the edges of spending, making incremental changes this way and that, then launching new moonshots and redoubling old impotent efforts. Politicians have put us on the precipice of financial ruin, and they show no indication of doing a damned thing about it.
And I think they know it. Look at the plaintive, semi-desperate, Stuart Smalleyesque mantra Obama kept repeating at the end: “We do big things.” By his insistence his anxiety shall be revealed. We don’t do big things, America, not in the moonshotty Marshall Plan way of speechwriters’ cliche box. Increasingly, we don’t do little things, either–like keeping libraries open five days a week in California. What we do is snarf up ever-larger portions of your grandkids’ money for purposes that are usually obscure and often criminal.
Read his whole post, including and especially the concluding line. Just as I’m writing this, and as a prelude to Paul’s video, the AP is across the wires with news from CBO that its projections for Social Security were wrong: They used to believe that the program wouldn’t start running permanent deficits until 2016, but it turns out the deficits will begin this year. (We’ll likely have a separate post on that later.) Like Paul says, the day of reckoning is at hand.
The world’s banking system (which is the western banking system) has the same problems that existed before the collapse in 2008, with two exceptions: 1) The problems are much larger; and 2) They have been shifted to the public. Since 2008, the Fed has loaded up on all sorts of “toxic debt”, including Fannie & Freddie (MBS), FHA, US Treasuries ($900B) and many more. Newly issued US debt ($2T annual deficit) is being purchased/monetized by the Fed and those holdings along with all the previously mentioned toxins are now backed by the US Treasury. As of October 20, 2010 the Fed’s balance sheet exceeded $2.3 trillion ($832b in Treasury debt). What’s the Fed’s plan to manage this liability in the event of a dollar collapse? Suffices to say, the US citizen is now the largest debtor in the history of the world.
Who’s Holding the Bag?
The Bernanke recently stated publically that: “Under a scenario in which short-term interest rates rise very significantly, it’s possible that there might come a period where we don’t remit anything to the Treasury for a couple of years. That would be I think a worst-case scenario.” You need to understand that all of the Treasuries purchased by the Fed will soon be ‘under-water’ which would result in the Fed being insolvent. This new twist allows the Fed to pass losses to the Treasury via interest payments (or lack of) on the US Treasury Bonds (i.e., paid by the US citizens). In simple terms, the US citizens are now the holders (back-stop) for the massive amounts of debt, debt that CANNOT be paid under any circumstance. That means the next insolvency crisis, which is a certainty, will be one of a sovereign nature. This fact changes significantly how the markets will react.
What Ignites the Next Blaze?
The potential list is long, so I’ll mention only a few. All of these things could happen in the next couple years, the first of which will start a fire the likes of which we’ve never witnessed. It could be US municipal defaults, policy shifts from the Chinese, a EU crisis, or an expanded war in the Middle East. I could go into detail about the crisis-solution agenda, but I’ll leave that for another day.
The US Market
QE2 is set to expire in June 2011 and The US Congress will need to address the debt ceiling by March. Expect the debt ceiling to be revised up in the near future and QE3 will probably be masked under a different name, but make no mistake, it’ll be money printing all the same. My understanding is that the banking system intends to continue increasing credit/debt throughout the world.
Through the next month or two (through Feb) we’ll likely see a continued rise in commodities and US equities. Picking a line in the sand is tricky business though, so making preparations now is prudent. As food and energy prices rise, nations will feel the sting of money printing (already happening). This will only increase the number of civil protests (RIOTS). Developing nations will feel the brunt of higher inflation, which will lead to various measures to control price increases (e.g., Russia’s recent announcement of food controls or COMEX margin hikes). The increased costs of commodities will be a drag on the world’s economy as well as the attempted policies to control the rise. As a result, I expect significant volatility throughout 2011. The global slowdown will lead to a drop in US markets by the middle of the year, giving the Fed impetus for more money printing. For anyone still expecting a return to ‘normal’, 2011 will be a wake-up call.
Beyond 2011
Similar to the “Choose-Your-Own-Ending” books (remember those?), the Fed has gone too far down the easing path to save the USD as it exists today. In the short-term, the USD is still being managed by the Fed, but this is only a temporary mirage. For the sake of this article, let’s assume they try (though highly unlikely) to restore confidence in the USD. The Fed could allow the bad debt to default (written off). As defaults rage the USD would skyrocket, due to massive liquidations and to a lesser extent, the safety trade. However, as a result of massive defaults, US banks would immediately be unable to honor deposits. Of course, the government could “back stop”/guarantee all the banks, but then we’re back into easing which puts the currency at risk. In addition to the banking collapse, The Fed and US Treasury (as the Fed’s back-stop) would default. Since this would be a sovereign default, and the USD is stock of that sovereign entity, the USD would collapse. There is one possibility in reviving the USD, albeit under a new/old system. That new system would require a huge revaluation in US gold holdings to be used as backing for the new USD. Jim Rickards has done some good work on the process and price of gold to make it a reality. Whether this happens or not remains to be seen.
As we work through this crisis, there will be a combination of defaults and austerity. Pensions will be slashed, state assets will be sold to the highest bidder (at massively undervalued prices), while new and existing taxes are imposed on the citizenry. Government services will be slashed and newly privatized assets will increase all types of expenses – things like water, energy and transportation. See the IMF blueprint for how this works, or ask an Argentine.
Civil unrest will increase dramatically, in places never before expected. Tensions between nations will rise and war will inevitably breakout throughout the globe. Sound gloomy? This too shall pass.
What to do?
If you have wealth to protect, a minimum of 30% should be held in gold, silver or productive land. I do not advocate 100% into PMs. Although the outcome of the USD is abundantly clear, current laws enforce the USD which should be held for expenses, emergencies, purchases and so forth. Rather, I suggest 30% be stored in physical gold and silver, 30% in cash and 30% in growth. Within the growth category you will have many paper options and should look to exceed the rate of inflation. As a further precaution, it’s advantageous to hold assets and citizenship outside of your primary residence.
The issues we face today are extremely complex and although the outcome appears certain, the specific events and timeline are impossible to predict. By maintaining a sound portfolio, you will afford yourself the most protection against a variety of financial outcomes.
Non-Financial
You should have water and food stocks along with necessary supplies, such as water filters, alternative heat sources, community networks and other essentials for surviving disasters. In all likelihood, systems will continue to function, but on a temporary basis, these items will keep you comfortable (relatively).
Learn who you are and what’s important to you. Find the meaning of your existence and strive to fulfill your purpose. Live in harmony with your surroundings and community. Love God and men. Don’t follow any institution and think for yourself. When making charitable donations, give them personally. I advise reading the bible (KJV), starting with the New Testament. Most importantly promote and vigorously protect freewill. If the Euro crashes, reduce USD positions!
~david freedom
david@thevictoryreport.org
benchcraft company portland or
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
benchcraft company scam
Good stuff, albeit understandably similar to Ryan’s speech last night, right down to the setting and studiously soft-spoken delivery. Even so, I want to promote it as a way of patting him on the back for floating his proposal for $500 billion in cuts this year. That plan is dead on arrival, needless to say, but passing it isn’t what Paul is after. What he’s trying to do with that eyepopping number is communicate the magnitude of the problem to the public in hopes of moving the Overton window on spending — because if this new Gallup poll is right, it’s going to need a lot of moving. And not just among Democrats, either:
Not a single point’s worth of difference between Republicans and Democrats on Social Security despite fiscal responsibility having rocketed to the top of the conservative policy agenda over the past two years. I don’t know how else to account for that except as a near-catastrophic failure by prominent Republicans to explain even to their own base that eliminating earmarks and cutting NPR’s funding and canceling a pie-in-the-sky defense project or two isn’t remotely equal to the task of guaranteeing sustainability. Case in point: Not only didn’t Ryan squarely address Social Security and Medicare last night (“the politics of evasion,” Ross Douthat calls it) but even a fearless deficit hawk like Paul, speaking only to an online audience, didn’t go after them here. Anyone who’s serious about balancing the budget long-term must support entitlement reform, no matter how unpleasant the prospect might be, but rarely does the public hear that point made by a prominent politician. And the entirely predictable tragedy of last night’s SOTU, as Tom Coburn argued in his op-ed this morning, is that only leadership from the most prominent politician of all is realistically capable of moving public opinion on this — yet that leadership was almost entirely absent last night. Writes Yuval Levin of the missed opportunity, “This speech was worse than bland and empty, it was a dereliction of duty.” And here’s Matt Welch:
[T]he president, though he is much more serious on this issue than a huge swath of his political party, is nonetheless not remotely serious about this issue. Vowing to cut $400 billion over 10 years (a plan that, judging by the two people clapping when he proposed it, will likely be cut to ribbons if it survives through Congress), at a moment when the deficit for this year is more than three times that, indicates that Democrats (and a helluva lot of Republicans as well) are hunkering down in our awful status quo–half-heartedly tinkering around the edges of spending, making incremental changes this way and that, then launching new moonshots and redoubling old impotent efforts. Politicians have put us on the precipice of financial ruin, and they show no indication of doing a damned thing about it.
And I think they know it. Look at the plaintive, semi-desperate, Stuart Smalleyesque mantra Obama kept repeating at the end: “We do big things.” By his insistence his anxiety shall be revealed. We don’t do big things, America, not in the moonshotty Marshall Plan way of speechwriters’ cliche box. Increasingly, we don’t do little things, either–like keeping libraries open five days a week in California. What we do is snarf up ever-larger portions of your grandkids’ money for purposes that are usually obscure and often criminal.
Read his whole post, including and especially the concluding line. Just as I’m writing this, and as a prelude to Paul’s video, the AP is across the wires with news from CBO that its projections for Social Security were wrong: They used to believe that the program wouldn’t start running permanent deficits until 2016, but it turns out the deficits will begin this year. (We’ll likely have a separate post on that later.) Like Paul says, the day of reckoning is at hand.
The world’s banking system (which is the western banking system) has the same problems that existed before the collapse in 2008, with two exceptions: 1) The problems are much larger; and 2) They have been shifted to the public. Since 2008, the Fed has loaded up on all sorts of “toxic debt”, including Fannie & Freddie (MBS), FHA, US Treasuries ($900B) and many more. Newly issued US debt ($2T annual deficit) is being purchased/monetized by the Fed and those holdings along with all the previously mentioned toxins are now backed by the US Treasury. As of October 20, 2010 the Fed’s balance sheet exceeded $2.3 trillion ($832b in Treasury debt). What’s the Fed’s plan to manage this liability in the event of a dollar collapse? Suffices to say, the US citizen is now the largest debtor in the history of the world.
Who’s Holding the Bag?
The Bernanke recently stated publically that: “Under a scenario in which short-term interest rates rise very significantly, it’s possible that there might come a period where we don’t remit anything to the Treasury for a couple of years. That would be I think a worst-case scenario.” You need to understand that all of the Treasuries purchased by the Fed will soon be ‘under-water’ which would result in the Fed being insolvent. This new twist allows the Fed to pass losses to the Treasury via interest payments (or lack of) on the US Treasury Bonds (i.e., paid by the US citizens). In simple terms, the US citizens are now the holders (back-stop) for the massive amounts of debt, debt that CANNOT be paid under any circumstance. That means the next insolvency crisis, which is a certainty, will be one of a sovereign nature. This fact changes significantly how the markets will react.
What Ignites the Next Blaze?
The potential list is long, so I’ll mention only a few. All of these things could happen in the next couple years, the first of which will start a fire the likes of which we’ve never witnessed. It could be US municipal defaults, policy shifts from the Chinese, a EU crisis, or an expanded war in the Middle East. I could go into detail about the crisis-solution agenda, but I’ll leave that for another day.
The US Market
QE2 is set to expire in June 2011 and The US Congress will need to address the debt ceiling by March. Expect the debt ceiling to be revised up in the near future and QE3 will probably be masked under a different name, but make no mistake, it’ll be money printing all the same. My understanding is that the banking system intends to continue increasing credit/debt throughout the world.
Through the next month or two (through Feb) we’ll likely see a continued rise in commodities and US equities. Picking a line in the sand is tricky business though, so making preparations now is prudent. As food and energy prices rise, nations will feel the sting of money printing (already happening). This will only increase the number of civil protests (RIOTS). Developing nations will feel the brunt of higher inflation, which will lead to various measures to control price increases (e.g., Russia’s recent announcement of food controls or COMEX margin hikes). The increased costs of commodities will be a drag on the world’s economy as well as the attempted policies to control the rise. As a result, I expect significant volatility throughout 2011. The global slowdown will lead to a drop in US markets by the middle of the year, giving the Fed impetus for more money printing. For anyone still expecting a return to ‘normal’, 2011 will be a wake-up call.
Beyond 2011
Similar to the “Choose-Your-Own-Ending” books (remember those?), the Fed has gone too far down the easing path to save the USD as it exists today. In the short-term, the USD is still being managed by the Fed, but this is only a temporary mirage. For the sake of this article, let’s assume they try (though highly unlikely) to restore confidence in the USD. The Fed could allow the bad debt to default (written off). As defaults rage the USD would skyrocket, due to massive liquidations and to a lesser extent, the safety trade. However, as a result of massive defaults, US banks would immediately be unable to honor deposits. Of course, the government could “back stop”/guarantee all the banks, but then we’re back into easing which puts the currency at risk. In addition to the banking collapse, The Fed and US Treasury (as the Fed’s back-stop) would default. Since this would be a sovereign default, and the USD is stock of that sovereign entity, the USD would collapse. There is one possibility in reviving the USD, albeit under a new/old system. That new system would require a huge revaluation in US gold holdings to be used as backing for the new USD. Jim Rickards has done some good work on the process and price of gold to make it a reality. Whether this happens or not remains to be seen.
As we work through this crisis, there will be a combination of defaults and austerity. Pensions will be slashed, state assets will be sold to the highest bidder (at massively undervalued prices), while new and existing taxes are imposed on the citizenry. Government services will be slashed and newly privatized assets will increase all types of expenses – things like water, energy and transportation. See the IMF blueprint for how this works, or ask an Argentine.
Civil unrest will increase dramatically, in places never before expected. Tensions between nations will rise and war will inevitably breakout throughout the globe. Sound gloomy? This too shall pass.
What to do?
If you have wealth to protect, a minimum of 30% should be held in gold, silver or productive land. I do not advocate 100% into PMs. Although the outcome of the USD is abundantly clear, current laws enforce the USD which should be held for expenses, emergencies, purchases and so forth. Rather, I suggest 30% be stored in physical gold and silver, 30% in cash and 30% in growth. Within the growth category you will have many paper options and should look to exceed the rate of inflation. As a further precaution, it’s advantageous to hold assets and citizenship outside of your primary residence.
The issues we face today are extremely complex and although the outcome appears certain, the specific events and timeline are impossible to predict. By maintaining a sound portfolio, you will afford yourself the most protection against a variety of financial outcomes.
Non-Financial
You should have water and food stocks along with necessary supplies, such as water filters, alternative heat sources, community networks and other essentials for surviving disasters. In all likelihood, systems will continue to function, but on a temporary basis, these items will keep you comfortable (relatively).
Learn who you are and what’s important to you. Find the meaning of your existence and strive to fulfill your purpose. Live in harmony with your surroundings and community. Love God and men. Don’t follow any institution and think for yourself. When making charitable donations, give them personally. I advise reading the bible (KJV), starting with the New Testament. Most importantly promote and vigorously protect freewill. If the Euro crashes, reduce USD positions!
~david freedom
david@thevictoryreport.org
bench craft company reviews
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
bench craft company reviews
[reefeed]
benchcraft company portland or
benchcraft company portland or
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
benchcraft company portland or
Good stuff, albeit understandably similar to Ryan’s speech last night, right down to the setting and studiously soft-spoken delivery. Even so, I want to promote it as a way of patting him on the back for floating his proposal for $500 billion in cuts this year. That plan is dead on arrival, needless to say, but passing it isn’t what Paul is after. What he’s trying to do with that eyepopping number is communicate the magnitude of the problem to the public in hopes of moving the Overton window on spending — because if this new Gallup poll is right, it’s going to need a lot of moving. And not just among Democrats, either:
Not a single point’s worth of difference between Republicans and Democrats on Social Security despite fiscal responsibility having rocketed to the top of the conservative policy agenda over the past two years. I don’t know how else to account for that except as a near-catastrophic failure by prominent Republicans to explain even to their own base that eliminating earmarks and cutting NPR’s funding and canceling a pie-in-the-sky defense project or two isn’t remotely equal to the task of guaranteeing sustainability. Case in point: Not only didn’t Ryan squarely address Social Security and Medicare last night (“the politics of evasion,” Ross Douthat calls it) but even a fearless deficit hawk like Paul, speaking only to an online audience, didn’t go after them here. Anyone who’s serious about balancing the budget long-term must support entitlement reform, no matter how unpleasant the prospect might be, but rarely does the public hear that point made by a prominent politician. And the entirely predictable tragedy of last night’s SOTU, as Tom Coburn argued in his op-ed this morning, is that only leadership from the most prominent politician of all is realistically capable of moving public opinion on this — yet that leadership was almost entirely absent last night. Writes Yuval Levin of the missed opportunity, “This speech was worse than bland and empty, it was a dereliction of duty.” And here’s Matt Welch:
[T]he president, though he is much more serious on this issue than a huge swath of his political party, is nonetheless not remotely serious about this issue. Vowing to cut $400 billion over 10 years (a plan that, judging by the two people clapping when he proposed it, will likely be cut to ribbons if it survives through Congress), at a moment when the deficit for this year is more than three times that, indicates that Democrats (and a helluva lot of Republicans as well) are hunkering down in our awful status quo–half-heartedly tinkering around the edges of spending, making incremental changes this way and that, then launching new moonshots and redoubling old impotent efforts. Politicians have put us on the precipice of financial ruin, and they show no indication of doing a damned thing about it.
And I think they know it. Look at the plaintive, semi-desperate, Stuart Smalleyesque mantra Obama kept repeating at the end: “We do big things.” By his insistence his anxiety shall be revealed. We don’t do big things, America, not in the moonshotty Marshall Plan way of speechwriters’ cliche box. Increasingly, we don’t do little things, either–like keeping libraries open five days a week in California. What we do is snarf up ever-larger portions of your grandkids’ money for purposes that are usually obscure and often criminal.
Read his whole post, including and especially the concluding line. Just as I’m writing this, and as a prelude to Paul’s video, the AP is across the wires with news from CBO that its projections for Social Security were wrong: They used to believe that the program wouldn’t start running permanent deficits until 2016, but it turns out the deficits will begin this year. (We’ll likely have a separate post on that later.) Like Paul says, the day of reckoning is at hand.
The world’s banking system (which is the western banking system) has the same problems that existed before the collapse in 2008, with two exceptions: 1) The problems are much larger; and 2) They have been shifted to the public. Since 2008, the Fed has loaded up on all sorts of “toxic debt”, including Fannie & Freddie (MBS), FHA, US Treasuries ($900B) and many more. Newly issued US debt ($2T annual deficit) is being purchased/monetized by the Fed and those holdings along with all the previously mentioned toxins are now backed by the US Treasury. As of October 20, 2010 the Fed’s balance sheet exceeded $2.3 trillion ($832b in Treasury debt). What’s the Fed’s plan to manage this liability in the event of a dollar collapse? Suffices to say, the US citizen is now the largest debtor in the history of the world.
Who’s Holding the Bag?
The Bernanke recently stated publically that: “Under a scenario in which short-term interest rates rise very significantly, it’s possible that there might come a period where we don’t remit anything to the Treasury for a couple of years. That would be I think a worst-case scenario.” You need to understand that all of the Treasuries purchased by the Fed will soon be ‘under-water’ which would result in the Fed being insolvent. This new twist allows the Fed to pass losses to the Treasury via interest payments (or lack of) on the US Treasury Bonds (i.e., paid by the US citizens). In simple terms, the US citizens are now the holders (back-stop) for the massive amounts of debt, debt that CANNOT be paid under any circumstance. That means the next insolvency crisis, which is a certainty, will be one of a sovereign nature. This fact changes significantly how the markets will react.
What Ignites the Next Blaze?
The potential list is long, so I’ll mention only a few. All of these things could happen in the next couple years, the first of which will start a fire the likes of which we’ve never witnessed. It could be US municipal defaults, policy shifts from the Chinese, a EU crisis, or an expanded war in the Middle East. I could go into detail about the crisis-solution agenda, but I’ll leave that for another day.
The US Market
QE2 is set to expire in June 2011 and The US Congress will need to address the debt ceiling by March. Expect the debt ceiling to be revised up in the near future and QE3 will probably be masked under a different name, but make no mistake, it’ll be money printing all the same. My understanding is that the banking system intends to continue increasing credit/debt throughout the world.
Through the next month or two (through Feb) we’ll likely see a continued rise in commodities and US equities. Picking a line in the sand is tricky business though, so making preparations now is prudent. As food and energy prices rise, nations will feel the sting of money printing (already happening). This will only increase the number of civil protests (RIOTS). Developing nations will feel the brunt of higher inflation, which will lead to various measures to control price increases (e.g., Russia’s recent announcement of food controls or COMEX margin hikes). The increased costs of commodities will be a drag on the world’s economy as well as the attempted policies to control the rise. As a result, I expect significant volatility throughout 2011. The global slowdown will lead to a drop in US markets by the middle of the year, giving the Fed impetus for more money printing. For anyone still expecting a return to ‘normal’, 2011 will be a wake-up call.
Beyond 2011
Similar to the “Choose-Your-Own-Ending” books (remember those?), the Fed has gone too far down the easing path to save the USD as it exists today. In the short-term, the USD is still being managed by the Fed, but this is only a temporary mirage. For the sake of this article, let’s assume they try (though highly unlikely) to restore confidence in the USD. The Fed could allow the bad debt to default (written off). As defaults rage the USD would skyrocket, due to massive liquidations and to a lesser extent, the safety trade. However, as a result of massive defaults, US banks would immediately be unable to honor deposits. Of course, the government could “back stop”/guarantee all the banks, but then we’re back into easing which puts the currency at risk. In addition to the banking collapse, The Fed and US Treasury (as the Fed’s back-stop) would default. Since this would be a sovereign default, and the USD is stock of that sovereign entity, the USD would collapse. There is one possibility in reviving the USD, albeit under a new/old system. That new system would require a huge revaluation in US gold holdings to be used as backing for the new USD. Jim Rickards has done some good work on the process and price of gold to make it a reality. Whether this happens or not remains to be seen.
As we work through this crisis, there will be a combination of defaults and austerity. Pensions will be slashed, state assets will be sold to the highest bidder (at massively undervalued prices), while new and existing taxes are imposed on the citizenry. Government services will be slashed and newly privatized assets will increase all types of expenses – things like water, energy and transportation. See the IMF blueprint for how this works, or ask an Argentine.
Civil unrest will increase dramatically, in places never before expected. Tensions between nations will rise and war will inevitably breakout throughout the globe. Sound gloomy? This too shall pass.
What to do?
If you have wealth to protect, a minimum of 30% should be held in gold, silver or productive land. I do not advocate 100% into PMs. Although the outcome of the USD is abundantly clear, current laws enforce the USD which should be held for expenses, emergencies, purchases and so forth. Rather, I suggest 30% be stored in physical gold and silver, 30% in cash and 30% in growth. Within the growth category you will have many paper options and should look to exceed the rate of inflation. As a further precaution, it’s advantageous to hold assets and citizenship outside of your primary residence.
The issues we face today are extremely complex and although the outcome appears certain, the specific events and timeline are impossible to predict. By maintaining a sound portfolio, you will afford yourself the most protection against a variety of financial outcomes.
Non-Financial
You should have water and food stocks along with necessary supplies, such as water filters, alternative heat sources, community networks and other essentials for surviving disasters. In all likelihood, systems will continue to function, but on a temporary basis, these items will keep you comfortable (relatively).
Learn who you are and what’s important to you. Find the meaning of your existence and strive to fulfill your purpose. Live in harmony with your surroundings and community. Love God and men. Don’t follow any institution and think for yourself. When making charitable donations, give them personally. I advise reading the bible (KJV), starting with the New Testament. Most importantly promote and vigorously protect freewill. If the Euro crashes, reduce USD positions!
~david freedom
david@thevictoryreport.org
bench craft company reviews
bench craft company reviews
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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benchcraft company portland or
benchcraft company portland or
benchcraft company portland or
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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Avoid Impulse Buys
Marketing professionals are fully aware that you have to stand in line at the store, and therefore find yourself looking around for goodies to check out. The magazines are usually there, as well as candy, lint brushes, light up keychains, etc. These are things you don't really need. Look, but don't touch. Avoid talking yourself into buying something that's been put there specifically to catch you at a weak moment. Just don't do it.
Do It Yourself
With so much information on the internet now, and many, many sites that offer How-To info (like eHow), there are a number of things for which you may have needed a professional in the past, that you can now do yourself. Don't take on any dangerous projects, or do things that are well beyond your capabilities, but for little jobs, or quick repairs, consult the internet for instructions. You might learn a thing or two, and then you can start charging your friends for your newly discovered talents!
Don't Speed
Cut the need for speed; for obvious reasons. Speeding tickets are expensive, and sticking to the speed limit, and maintaing speed are better for your gas mileage. Also, avoiding speeding makes you less likely to get into a fender bender, or worse. Don't forget, too, if you do get a speeding ticket, your insurance rates go up. Avoiding a speeding ticket for that reason alone will save you a bundle. Do some quick math with me... say the speed limit is 40 and you need to drive a distance of 10 miles. You should arrive, barring any traffic jams, in 15 minutes. Let's say you decide you're late and so you put the pedal to the metal. You're driving 60 in a 40mph zone. Do you realize you've only cut your arrival time by a mere 5 minutes? You 'could' justify that, but if you really think about it, it's not quite worth all the risk involved.
Consider travel alternatives
Airline prices keep getting higher, and sometimes even when you plan ahead, the price to fly is is out of reach. Fortunately, Amtrak and Greyhound offer much cheaper alternatives. You can also shop comparison rates for all the major rental car companies, and hotels in the area where you're headed. You may even be able to save money by driving a rental car to your vacation destination.
Opt for used over new
Many items are virtually 'as good as new' even if they have been slightly used. You may not want to go that far with cars and clothes (though I certainly would consider it) but, for things such as books, cds, and gift items, used may be the perfect choice. Whenever there's something that you fancy, take a moment to wonder if you could find the same item used.
Brew your own coffee
Good heavens, you do know how expensive Starbucks coffee is, right? Even spending money on coffee at the local convenience store, or cafe is quite a markup from the cost of brewing your own. Get a coffee maker with a timer and set it to begin brewing before your alarm clock goes off. Get yourself a travel mug, if you're short on time, and fill up at home.
Visit your local library
How often do you purchase a book that you actually read and re-read? Don't you usually just read a book once? Why spend a ton of money on a bestselling hardcover when you could borrow it for FREE from the library? Unless you're a collector, you could get loads of books for free from your local library, as long as you return them. :) Most libraries even have a periodical section complete with comfy chairs. Take a break, pull up a chair, and get caught up on the latest news and gossip from newspapers and magazines. No need to buy them.
Comparison shop your local grocery stores
When you need food, that's pretty much it. There's no time to run around and see who's got the best price. So, if you have more than one grocery store in your area, including the grocery section inside a Super Walmart, pick about three items, like milk, your favorite brand of cereal, and that half gallon of ice cream you buy once in a while. Notate the price of those three items and next time you go grocery shopping, pick a different store and see how the prices add up. Take into consideration any shopper's discount card and notice if the prices are comparable. Walmart prices are different everywhere, but I've noticed a considerable difference on may items. Even when compared with our local 'discount' grocery store, Walmart's prices are much lower. I get a substantial savings when doing the shopping for a 2-3 week period.
Look for money
Always be on the lookout for money on the ground. Pennies add up too, and lots of people overlook them, or drop them on purpose. What?? Don't worry about people wondering what you're doing. If you don't care, they won't either. Anytime you see change, or especially a bill, on the ground, just bend over and pick it up. (You could even invest in a metal detector and make it a hobby.) Put your 'found' change and bills in a special jar. This is a fun thing to do for 1 year. Mark the date you begin on the jar, and after one year open it up to see just how much money you've found.
Find student or intern programs
Oftentimes local beauty schools, trade or vocational schools, or colleges of dentistry will offer deeply discounted programs to the public. If you need a haircut, auto body work, or some work done on your teeth, you may be able to find a deal. Check with local colleges or training schools to see what they offer.
Check local free event listings
Your local area likely has free events, free parks, and free activities; some of which you may not even be aware. Check at your library, in the newspaper, or on the internet for local listings. You might walk or bike in a park, find a public swimming pool, join a free club, or partake in free sporting events. This is also a great way to meet people with similar interests.
Give a little
Giving is a wonderful thing. The act of giving actually opens up a passageway in your energy field. It creates a two-way street for gifts to flow in and out of your life. I'm not necessarily suggesting that you tithe 20% of your paycheck, or even donate a set amount to charity. If those things work for you, by all means, it's a great thing. But if all that feels overwhelming to you, start small; very small. Give a bit to a child, to someone in need, or to a worthy cause. If you can't possibly spare a few dollars, give some time. Give of yourself using the gifts you have readily available. Even just a simple smile or 'Hello' to a stranger will begin to change your life.
Click here for a more in-depth list of ways to save money
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Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
big seminar 14
Breaking <b>news</b>: Bar Rafaeli enters Big Brother house in Israel
Big Brother Israel, now airing it's third season, saw a special guest enter the house - world renowned Victoria's Secret model and Leo's main squeeze, Bar.
Social Media Goes Viral on Capitol Hill : Roll Call
When Speaker Nancy Pelosi (D-Calif.) decided to run for Minority Leader after Democrats lost the House in November, she wanted to get the news out fast and cast a wide net. So she tweeted it.
And now for some good <b>news</b> « Legal Planet: Environmental Law and <b>...</b>
The San Jose Mercury News reports that fish and birds are responding well to restoration of former salt ponds on the edges of San Francisco Bay to more natural tidal marsh. Continued operation of the salt ponds by Cargill Salt, ...
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