Archive for June, 2011

Is This 1937 or 2011 Deja Vou Part II

Tuesday, June 14th, 2011

Is This 1937 or 2011 Deja Vu Part II

Thursday, June 9th, 2011

With QE2 ending at the end of June, the Treasury Department will be forced to go back to global markets in order to sell Treasury Bonds.

Interest rates are sure to rise, dealing a severe blow to the already fragile recovery.

Federal Reserve Chairman, Ben Bernanke’s Qualitative Easing plan has failed to stimulate economic growth, but has done a masterful job of encouraging inflation and a weakening dollar.

Armed with a printing press, and some  obsolete economic theories, he  is fated to  become a Quixotic figure  in World history.

A printing press should be used for printing books, instruction manuals and even Bibles, but not to stimulate free enterprise economic growth and investments.

The insidious  inflation is having the result of disrupting economic growth, rather than encouraging it.

How can an entreprenure invest in a new enterprise when inflation makes price stability questionable.

This coupled with increasingly stringent government regulations and the onset of Obamacare have done a masterful job of strangling the economy.

According to a recently released report, the combined public and private sectors of our economy spend upwards of a $2 billion just on interest on all our debt.

The borrowed money which this interest services, has been spent on consumption rather than capital investment.

This is leaving nothing available for real growth or new creations.

QE2 has done nothing but service our debt and given a momentary artifical bounce in an otherwise floundering economy.

The current and proposed future taxes which are being piled upon the “wealthy” (ie the entreprenure) is making the  economic recovery  increasingly reminiscent of a black hole.

More Later

Is This 1937 or 2011 Deja Vu all over Again

Thursday, June 9th, 2011

Well dear friends, QE2 is comming to an end,

What does that really mean, and what has all the fuss been about?

We put cute names and labels of earth shaking actions to make them pallatable to the average person, but the real intention is to hide the reality of what is happening.

QE2 or Quantitative Easing is another way of saying that the United States Federal Reserve has printed $ 600 Billion out of thin air and used this freshly inked paper to purchase 85 % of the Treasury Securities issued in the past 6 + months.

This giant Ponzi scheme has allowed the Fed to keep interest rates artifically low while flooding the market with inflationary paper, which has been used to pay the interest on our national DEBT.

What? We are printing money out of thin air, and using this to buy our own bonds?!!

As of June 30th, this program will end.

Now what!

How will we be able to continue selling $Trillions of new Treasury securities and record low rates of interest?

The answer is we won’t.

After this program ends, we will have to look to foreign buyers.

China, Saudi Arabis, possibly France and other Euro nations, as well as some hostile people with huge petro dollars such as Iran, Venezuela, et al.

Will these foreign nations be willing to lend us money at depressed interest rates.

HELL NO!!!

The days of cheap money are destined to come to a swift end.

5%, 6%,and higher are in our immediate future, and the drag on a very fragile economy will drag us to the precpice of a precipitous drop.

More later,