- Whether it is this year or 2011, I know it is close. I don’t think based on current trend, D-day is 5-10 years away. More like within the next 3 years.
- The chart above illustrates the problem America is in. No amount of debt stimulus plan will result in positive growth. Thus, what we see is an oxymoronic ’jobless growth’ recovery! The government can only manipulate economic statistics for so long. The chickens are coming home to roost. Whether the snakes like it or not, the economy need to go to a phase of debt liquidation: ie debt reduction. The current debt of over US$12T at 3% interest amounts to US$360B in interest annually. This is 16-18% of tax revenues. When we include unfunded liabilities, the debt is easily US$100T.
- With social security, Medicare and Medicaid funding in negative territory to the tune of US$29B (2010), things are definitely coming to a head! How long can this Ponzi scheme last? Not much longer! Maurizio d’Orlando opines:
In 2008, the size of the debt was such that it was quite clear that it was not sustainable. Now we have a timeframe to measure the likelihood of insolvency for the US public debt, and it is this year. The reason for that is described in an article whose title needs no explanation: “The bankruptcy of the United States is now certain”.The abyss of debtBy the end of 2010, the US Treasury will have to refinance US$ 2 trillion in short-term debt, plus additional deficit spending for this year, estimated to be around US$ 1.5 trillion (US$ 1.6 trillion today two months after the original article was published). Together, the US Treasury will need to borrow US$ 3.5 trillion (US$ 3.6 according to this writer) in just one year.In 1999, two well-known economists—Alan Greenspan and Pablo Guidotti—published a formula in an academic paper. Kept secret for a long time, it is designed to predict with precision when a country’s public debt will lead it to be insolvent. Called the Greenspan-Guidotti rule, it says that to avoid a default, countries should maintain hard currency reserves equal to at least 100 per cent of their short-term foreign debt maturities.According to the author, the United States holds 8,133.5 metric tonnes of gold (the world’s largest holder). At November 2009 dollar values, that is about U$ 300 billion. The US strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that is roughly US$ 58 billion worth of oil. According to the IMF, the US has US$ 136 billion in foreign currency reserves. Altogether, that is some US$ 500 billion in reserves (US$ 455.5 billion according to AsiaNews).Foreigners hold 44 per cent of US$ two trillion short-term US debt; that is US$ 880 billion. Total domestic savings in the United States are only around US$ 600 billion annually. If the United States needs to sell US$ 3.5 trillion (or US$ 3.6 trillion) in Treasury bills, and all domestic savings combined are put into US Treasury debt, the United States will still fall short by nearly US$ 3 trillion. Where is the rest of the money going to come from?China’s goldNot China, nor India or any other Asian countries. Last year, China has in fact proportionately reduced its holdings in US Treasury bills in relation to rest of its reserves.Recently, the International Monetary Fund (IMF) put up 191.3 tonnes of gold for sale. Some analysts had earlier suggested that China might be interested in buying it. Assets in dollars are estimated to represent over 70 per cent of China’s US$ 2.4 trillion foreign exchange reserves. As of April 2009, China held 1,054 tonnes of gold or 1.2 per cent of its GDP. That falls well below the world average. Indeed, gold represents less than 10 per cent of China’s total reserves.According to the China Daily, a semi-official mouthpiece for the Communist Party of China, China is not likely to buy IMF gold because it might upset the market. However, some Chinese commentators believe that Beijing should increase its gold reserves to 1,800. Sources told AsiaNews that China’s real goal is 4,000 tonnes.The same is true for other Asian countries. For instance, India, Mauritius and Sri Lanka have bought 212 tonnes sold by the IMF.As for Japan, it is likely to continue avoiding open confrontation with the United States; but the real intentions of its top financial circles might be inferred from a mysterious and unsolved incident that occurred last summer when two officials from Japan’s central bank were caught at the Italian-Swiss border town of Chiasso carrying US Treasury bills with a nominal value of US$ 134.5 billion.Since 1945, the US dollar has been the main international reserve currency. In theory, this gave the US Federal Reserve the power to issue debt securities at will, with the value of international trading assets. However, the Greenspan-Guidotti rule restricts this power.Whenever US insolvency becomes self-evident, no one dare say they did not know. The Greenspan who came up with the aforementioned formula is the same Alan Greenspan who chaired the Federal Reserve for 18 years and allowed speculative. i.e. “structured” finance to expand (based on poorly tested mathematical algorithms).This is the same Greenspan who in 1977 wrote a prophetic PhD dissertation (which was removed from his university at his request in 1987, when he became Fed chairman) on how financial bubbles develop in real estate and then burst. Not only was Greenspan aware of it, but so were US top financial circles. In other periods of history, this could lead to accusations of “treason”, but today our sense of personal and collective responsibility is more faded and faint than before. Alternatively, perhaps, there is a level of ultimate responsibility that is darker and runs deeper that the guilt of any one individual.
- The economic conditions in America is far dire than the Eurozone. Although, all the MSM is hyping on, is the sovereign debt default in the Eurozone, the US will face a far worse day of reckoning. As the USD is the world reserve currency, the entire world will be badly affected. A global monetary crisis is brewing. The question is: when the plug will be pulled by the PTB. The plan it seems is a repeat of 1929-1939 and the endgame is a world war! The Wall Street Journal reports:
NEW YORK — Something troubling has occurred in the market for default protection on the debt of the world’s biggest borrower. As the folks at Standard Poor’s Valuation and Risk Strategies division noted in a research note Monday, the difference between the spread on U.S. sovereign credit default swaps and an equivalent benchmark for AAA-rated euro-zone sovereigns flipped into positive territory March 12. As U.S. CDS spreads expanded to their widest levels in two years, that cross-region gap blew out to 5.7 basis points last Friday before narrowing to 4.7 Tuesday.
Wider CDS spreads indicate that sellers of insurance against a particular issuer’s default are charging more for it. In effect, the positive U.S.-versus-euro zone spread means investors think the risk of a U.S. default–however remote–is greater than that on euro-denominated sovereign debt.
So much for the view that low inflation and loose monetary policy make for a rosier debt outlook for Treasurys than for the debt of crisis-hit euro-zone sovereigns. “We’ve seen CDS on U.S. Treasurys break with euro CDS before, but never to the degree we have here,” said Michael Thompson, head of research for S&P’s
Valuation and Risk Strategies group. “If we sit on this precipice for a time, I think a lot of market participants would see this as a bit of a shot across the bow, a bit of a wakeup” for anyone who’s complacent about U.S. debt.
Wouldn’t it also challenge U.S. Treasurys’ status as the so-called “risk free” benchmark? S&P didn’t go there. But the report did say the trend “reflects increasing market anxiety surrounding the U.S.’s credit quality.” In other words, a fiscal deficit worth 10% of gross domestic product–in the absence of a clear plan to reduce it — matters.
Thompson’s team also noted that the deterioration in U.S. default swaps meant that S&P’s “market-derived signal” dropped to ‘aa+,’ its lowest level in two years. The historical series for that indicator is based on an established correlation with actual S&P ratings.
There’s no indication that S&P’s separate ratings division is about to downgrade the U.S. ‘s vital ‘AAA’ rating. But over time, ratings analysts cannot stay blind to market signals like this one. As its weighs the stimulus needs of a still-fragile U.S. economy against future risks to debt servicing costs, the U.S. government can’t ignore market signals either.
- See also:
Gerald Celente: Great 2010 Crash is Looming !
Bob Chapman: The Illuminist World Economic Collapse Bomb!
MEP: Euro Will Collapse, ‘Pig States’ To Bring EU Down !
ECB’s Nowotny Says Governments May Face Threat of ‘Debt Spiral’!
Moody’s Fears Social Unrest As AAA States Implement Austerity Plans!
Jim Rogers: Social Unrest, Debt Default & Government Corruption!
Marc Faber And Mish Shedlock: We’re Doomed and Washington Can’t Do Anything About It !
Collapse of the American Empire: Swift, Silent, Certain!
Bob Chapman: World Constitution, World Government and World Currency Run by Banksters! The Rise of The ‘Mystery Babylon Whore’ of Revelation 17!
Bob Chapman: Sovereign Debt Default, Dollar Devaluation, Economic Depression and War!
Europe’s Banks Brace For UK Debt Crisis!
Max Kaiser Details The Banking Cartels Financial Criminality in Pillaging Europe!
Riots in Athens as Thousands Protest Against Cutbacks!
Bill Fleckenstein: Greece And UK Are Suffering A Dire Funding Problem That Is Headed For US Shores!
Fitch Warns Britain and Questions Greek Rescue as Sovereign Risks Grow!
Bob Chapman: The Albatross of Sovereign Debt!
Marc Faber: Forget US Stocks, Buy Gold Every Month ‘Forever’!
Bob Chapman: The World is Heading Towards Many Years of Economic Darkness!
Bill Gross: Markets Will Soon Discover How Sovereign Nations Can Go Bust Just Like Companies!
Greece Now, U.K. Next as Scots Ready for Pound Plunge !
Ron Paul: The US Government’s Debt Can Never Be Repaid!
Bob Chapman: Illuminati Banksters’ Final Moves To Bankrupt The World And Push For World Government!
Dennis Gartman: The Euro Is ‘Doomed’ !
Concerns Grow Over China’s Sale of US Bonds!
Doomsday Is Here For The State Of Illinois!
Ron Paul: Chaos in The Streets and Poverty Coming To the USA!
Charlie Munger: Basically, It’s Over! A Parable About How One Nation Came To Financial Ruin!
On the Brink of a Bond Market Apocalypse!
Ron Paul: We Are On The Brink Of A Financial Cataclysmic Event ! We Will Have A Currency Crisis!
GEAB N°42 : Towards a Global Systemic Crisis of the World Economy!
Britain At Risk Of Worse Deficit Crisis Than Greece!
Charles Ortel: Risks of U.S. Default Are Very Real !
Bill Gross: Avoid UK Debts … It is “Resting On A Bed Of Nitroglycerine”!
Europe’s Exposure To ‘PIGS’ Problem!
Niall Ferguson: A Greek Crisis Is Coming To America!
Think the PIGS Are in Trouble? These 7 U.S. States Could Be Heading for Something Worse!
Spanish Intelligence Probing Debt “Attacks”!
Fears Rise of Euro Government Default !
Greece ‘Dress Rehearsal’ For U.S.!
20 Reasons Global Debt Time Bomb Explodes Soon!
John Mauldin: Greeks Bearing Gifts!
Niall Ferguson: Others Will Follow Greek Debt Tragedy!
Funds Flee Greece as Germany Warns of “Fatal” Eurozone Crisis!
S&P Threatens Japan Downgrade!
Bill Gross: Avoid UK Debts … It is “Resting On A Bed Of Nitroglycerine”!
The Global Debt Bomb!
Godfrey Bloom: End of National Sovereignty & The Beginning of Global Servitude !
Greece Debt Default Could Take Eurozone Down With It !
More and More American States on Budget Brink!
Is The Euro Headed For A Breakup? ECB Prepares Legal Ground For Euro Rupture As Greek Crisis Escalates!
GEAB N°41: The Decade 2010 – 2020, Towards A Knockout Victory By Gold Over The Dollar!
GEAB N°40: Growing Sovereign Debt Default Risk Will Drive Central Banks Toward Gold!
Global Systemic Crisis: In pursuit of the Impossible Economic Recovery !
GEAB: China’s Great Escape from the Dollar Trap !
Eurozone Faces Meltdown Under Sovereign Debt Crisis 2010 !
Marc Faber: We Are Doomed!
Dollar Crisis Looms if US Doesn’t Curb Debt !
Marc Faber: The Next Thing You Need To Worry About Is The PIIGS! Eurozone Sovereign Debt Default Crisis!
A Global Fiasco Is Brewing In Japan!
- This is the same O same O games and propaganda the snakes play. Nothing will change. American politicians pretend to be concerned about the plight of the Palestinians and feign outrage at Israel. Zionist Israel pretend to be alarmed. All these are just a show for public consumption. Nothing has changed and Israel will continue with its numerous inhumane acts against the Palestinians it has done so for the past 60+ years.
- Behind all these machinations is the shadow government executing their New World Order plan. Keep in mind that the plot has always been a One World Government, One World Bank and One World Luciferian religion centred in Jerusalem. The Man of Sin, Anti-Christ, son of Satan will be enthroned in the temple of God as the ultimate insult to God! Stephen Maher writes:
The speeches at AIPAC, the pro-Israel lobby group, on Monday by Israeli Prime Minister Benjamin Netanyahu and US Secretary of State Hillary Clinton and Netanyahu’s subsequent meeting with US President Barack Obama are widely seen as drawing to a close what Israeli ambassador to the US Michael Oren called the “most severe crisis in US-Israel relations” in decades. This rapprochement comes on the heels of a series of seemingly angry statements top members of the Obama Administration released, after Israel announced construction of 1,600 new illegal housing units in occupied East Jerusalem while US Vice President Joe Biden was in the country.
In fact, the basis for the Obama Administration’s criticisms of the settlement announcement — as well as the significance of the crisis itself — has been widely misconstrued by both supporters and critics of Israel. AIPAC and the Anti-Defamation League (ADL) were “shocked and stunned” that Biden and Clinton called the Israeli announcement “insulting.” AIPAC urged the administration to “take immediate steps to defuse the tension with the Jewish state” and “move away from public demands and unilateral deadlines directed at Israel.” Meanwhile, the ADL mused, “One can only wonder how far the US is prepared go in distancing itself from Israel.”
Contrary to both of these positions, the Obama Administration merely reacted to a diplomatic affront it was dealt by the Israeli government. Israel’s announcement came on the same day that Biden had arrived in the country to proudly confirm the US’ “absolute, total and unvarnished” commitment to its ally, and commence indirect talks with the Palestinians.
Clinton said the timing of the announcement was “insulting,” while top aide David Axelrod called it an “affront” that “seemed calculated” to undermine the peace talks. The Obama Administration hopes that this PR display will allow the US to fortify its farcical claim to be an “honest broker” in the peace process, provide Abbas the political cover to re-enter negotiations, and send a message to the Israeli government that American leaders are to be treated with respect. As CNN reported, Netanyahu has now set up a team to investigate why the settlement construction announcement was made during Biden’s visit.
Netanyahu may well have been telling the truth when he claimed to be “surprised” by the public criticisms by the US government. The day before, one day after US envoy George Mitchell arrived to broker newly-announced “proximity talks,” the State Department explicitly approved Israel’s construction of 112 new apartments in an illegal settlement outside Bethlehem. The assent came despite Netanyahu’s declaration of a “moratorium” on settlement building, which he has insisted cannot include such illegal construction in Israeli-occupied East Jerusalem, a position the US has accepted.
Yet even when the administration was at its most critical of Israel, following Obama’s speech in Cairo last year, Israel was reassured that the actions taken by the US would be “largely symbolic.” Indeed, Obama unconditionally re-authorized the loan guarantees program and massive US aid — conservatively estimated at $7 million per day — has continued without threat of reduction.Obviously, the Obama Administration is hardly concerned about Israeli violations of international law, previous agreements it has signed, or the human rights of the Palestinians. The implication throughout is that had the announcement come a week before Biden visited (or even a day before, as the Bethlehem announcement did) there would have been no problem. Indeed, just one week later, after the Israeli government announced construction on an additional 426 East Jerusalem settlement homes, Clinton “bolstered her support for the Jewish state,” according to The Washington Post. The Israeli army then opened fire on peaceful protestors in Gaza twice in two days, and carried out air strikes on targets in Gaza, while Clinton issued another statement saying that the steps offered by the Israeli government to resolve the dispute were “useful and productive.”
The escalating repression continued Sunday, when the Israeli army shot and killed four Palestinian youths in 24 hours in the West Bank, two aged 18 and two 16. Simultaneously, Netanyahu issued a statement proclaiming that Israel would never cease building illegally in East Jerusalem as Ban Ki-moon arrived in Israel. Clearly, recent condemnations of these projects as “illegal” by Ban and the European Union did not stop Obama from welcoming Netanyahu to Washington on Monday with a private meeting, nor Clinton from proudly sharing the stage with him at the AIPAC conference to reaffirm the US commitment to support Israel’s rejection of the international consensus for resolving the conflict. Though she did say the settlements “undermine mutual trust,” she did not acknowledge their illegality and mostly stressed the threat that US support for them poses to its “credibility” as an “honest broker,” thus urging Israel to refrain from such flagrantly provocative behavior while reinforcing that the US-Israel relationship is “rock solid.”
The US hopes that this pretended outrage will lend its role as “honest broker” enough credibility to keep the “peace process” moving, itself merely a PR facade that shields Israeli crimes from public scrutiny. If it does not, the US will undoubtedly pay little mind to the harsh words spoken this week and do as it has done before: blame the Palestinians for its failure and support Israeli repression.
Stephen Maher is an MA candidate at American University School of International Service who has lived in the West Bank, and is currently writing his masters’ thesis, “The New Nakba: Oslo and the End of Palestine,” on the Israel-Palestine conflict. His work has been appeared in Extra!, ZNet and other publications. His blog is www.rationalmanifesto.blogspot.com.
- The MSM is the propaganda arm of the Illuminati ruling elite. Don’t be deceived. Their method is always: subtlety and deception. See also:
Alex Jones: Speech On Architects and Engineers for 9/11 Truth Seminar at DoubleTree Hotel, Austin Texas.
Dr. Alan Sabrosky, Ex-Director of Studies At The US Army War College: The US Military Knows MOSSAD and Traitorous Elements in US Government did 9/11 !
9/11 Commission Was Ordered to Scale Down Investigation!
Architect Ron Avery Discusses Evidence of 9/11 Being an Inside Job!
Texas Architects & Engineers call for a Real Investigation of the Destruction of the World Trade Center on 9/11 !
Fabled Enemies: 9/11 False Flag Operation and State Sponsored Terrorism!
9/11 Truthers Attend Treason in America!
Eye Witness Reports on Bombs/Explosions Bringing Down The WTC!
Bush Caught Lying About September 11th!
Professors Phillips & Huff: State Crimes Against Democracy!
Twelve New England Towns Demand 9/11 Reinvestigation
Fire Fighters for 9/11 Truth !
Architects For 9/11 Inquiry: Fire Couldn’t Demolish WTC In 11 Seconds !
9/11: Analysis of North Tower Demolition!
9/11 Truth Search: Planes Didn’t Take Twin Towers Down !
1,000 Architects & Engineers Call for New 9/11 Investigation!
Professor Chossudovsky: War and Globalization – The Truth Behind September 11 !
9/11 The Road to Tyranny
Former FBI Chief Says 9/11 Was An Inside Job!
Outfoxing the 9/11 Coverup
Controlled Demolitions Caused the Collapse of the World Trade Center (WTC) buildings on September 11, 2001
The 9/11 Commission Rejects own Report as Based on Government Lies!
Bigard’s 9/11 Series
9/11 Truth Revolution
9/11 and Hitler’s Reichstag Fire!
Bee Gees: 9/11 is a Lie!
Stop the 9/11 Cover-Up! 9/11 Commission Members Doubt Official Story !
9/11 Loose Change Documentary
Seven CIA Veterans Challenge 9/11 Commission Report!
Actor Charlie Sheen: America Was Behind the 9/11 Atrocities!
Aaron Russo: Rockefeller Knew about 9/11 Well In Advance?
Jesse Ventura on 9/11 Inside Job
Turning 9/11 Realities Upside Down: When the “Big Lie” becomes the “Truth”
9/11 In 7 Minutes! 9/11 Myths – Think About It!
Japanese Politician Yukihisa Fujita: Bush’s 9/11 Lie !
Councilor Fujita Questions 9/11 in the Japanese Diet (Parliament)!
The 9/11 Chronicles: Part One, Truth Rising!
Richard Gage: Was 9/11 an Inside Job?
Justice for 9/11
9/11 Coincidences – 1
9/11 Coincidences – 2
9/11 Coincidences – 3
9/11 Coincidences – 4
9/11 Coincidences – 5
9/11 Video Clips Dan Rather Would Rather Not Show You
Osama Bin Laden Worked for US until 9/11
Experts Want New 9/11 investigation
Jesse Ventura: They Spent $100M Investigating Clinton But Only $4M On 9/11!
Professor Harrit: WTC Buildings Were Brought Down By Controlled Demolition
Official 7/7 London Bombing Account is a Complex and Contradictory Series of Lies!
New 7/7 Bombing Photo Contradicts Official Story
9/11 FLIR Infrared Camera proves NIST and 9/11 Commission Lies
Major General (Ret) Albert N. Stubblebine: Official Version of 9/11 is a Fraud!
29 Structural & Civil Engineers Cite Evidence for Controlled Explosive Demolition in Collapses of All 3 WTC High-Rises on 9/11
Major 9/11 Truth Breakthrough KBDI Denver Airs 9/11 Press for Truth
9/11 Blueprint for Truth
Ex-Italian President: 9/11 Was CIA/Mossad Operation
Danish Scientist Niels Harrit: Nano Thermite (Explosives) in the WTC Dust !
Active Thermitic Material Discovered in Dust from the 9/11 World Trade Center Catastrophe
Medical Professionals for 9/11 Truth
Political Leaders for 9/11 Truth