Category: Food Prices

Great: The United States is now borrowing more than the GDP

Posted on2 Comments

This is unreal… 🙄

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.

Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country’s spending commitments reached a breaking point and it threatened to default on its debt.

The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.

Public debt subject to the official debt limit — a slightly tighter definition — was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.

Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country’s bloating deficit.

The official limit was hiked $400 billion on Tuesday and will be increased in stages over the next 18 months.

via US borrowing tops 100% of GDP: Treasury – Yahoo! News.

Chew on that one for a few seconds or longer. The USA is borrowing more money from China, that the United States makes as a whole. For the reading up on the GDP, click here. I also recommend that you read up on the Gross National Product and Gross Domestic Income. All of that above, factors into our economy; and believe me when I tell you — we are circling the drain my friends.

There is a bunch more on this subject; and for what it is worth, I do not claim to be an expert on this stuff at all — So, I recommend you read following related articles:

U.S. debt shoots up $239 billion -- in one day!
Gov't will borrow $72B next week...
Obama, Bernanke out of ammo to boost jobs, growth...
Scary Market Chart Pattern Suggests More Selling on Way...
Economy struggles to find footing...
Gold at $2,000 by year-end...

Speaking of Gold, this would be a good time to get into investing in Gold, It would also be good to stock up on  Guns and Ammo!

What I will tell you is; because I am an honest blogger and not some partisan shill for a particular party – is this here.  Many on the right wing Blogosphere will be quick to put this entire situation on President Obama.  I cannot and will not do that; the truth is folks, we did have and still do have two wars that we are fighting; and those cost money too.  We also did have the bailout of the banks and tarp bailouts, the trap loans to the big three, being a fraction of the total cost.

Truth is my friends; we are here because of foolishness of our elected leaders — Republican and Democratic Party.  Both sides have steered this Nation over a cliff.  President Obama tried and ultimately failed to bring an economic revival to the Country.  Now we have to pay the proverbial piper.  It is going to be a painful process; the tap is turned off and we are now going to have embrace austerity.

It is a horrible thing to endure, but it is something that we are going to have to endure — if we are going to continue as a Country, as we know it now.

Update: This is now a Memeorandum Thread: Others covering: Washington Times, Scared Monkeys, Conservatives4Palin, Pajamas Media, Weasel Zippers, Fausta’s Blog, Power Line and The Lonely Conservative

In case you thought I was kidding about buying Gold

Posted on

Here we go!

Remember when I said to buy Gold?

I was not kidding.

Check this out from the U.K. Telegraph:


As the twin pillars of international monetary system threaten to come tumbling down in unison, gold has reclaimed its ancient status as the anchor of stability. The spot price surged to an all-time high of $1,594 an ounce in London, lifting silver to $39 in its train.

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save – Spain and Italy – though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe’s currency union.

On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody’s to warn of a “very small but rising risk” that the world’s paramount power may default within two weeks. “The unthinkable is now thinkable,” said Ross Norman, director of thebulliondesk.com.

Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. “Deflationary risks might re-emerge, implying a need for additional policy support,” he said.

The bar to QE3 – yet more bond purchases – is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.

•snip•

“One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money.”

•snip•

Step by step, the world is edging towards a revived Gold Standard as it becomes clearer that Japan and the West have reached debt saturation. World Bank chief Robert Zoellick said it was time to “consider employing gold as an international reference point.” The Swiss parliament is to hold hearings on a parallel “Gold Franc”. Utah has recognised gold as legal tender for tax payments.

A new Gold Standard would probably be based on a variant of the ‘Bancor’ proposed by Keynes in the late 1940s. This was a basket of 30 commodities intended to be less deflationary than pure gold, which had compounded in the Great Depression. The idea was revived by China’s central bank chief Zhou Xiaochuan two years ago as a way of curbing the “credit-based” excess.

Mr Bernanke himself was grilled by Congress this week on the role of gold. Why do people by gold? “As protection against of what we call tail risks: really, really bad outcomes,” he replied.

Indeed.

 

My friends, if this is not the time to buy gold; I really do not know what is.

Click this link to find out how to get into gold today

A Reminder: Go Gold

Posted on1 Comment

Just a follow up to yesterday’s posting; it would seem that this would be a good time to invest in gold, even if you cannot afford the expensive stuff, a small investment in the cheaper stuff would be smart.

As you know I am an affiliate for GoldSilver.com  and they offer some great coins and bullion for those who wish to invest in that sort of the thing.

GoldSilver.com offers

You can also check out their Silver Products Here

Want more proof? Check out this video from Russian TV:

I think it is time to invest in Gold. I mean, when the fed chairman says he does not believe that Gold is money; something is horribly wrong.

Jobs report bleak, Democrats still clueless as ever

Posted on

Now I see why Rick Santelli is ranting and raving!

First of all, here is the lovely report via the NYT:

For the second month in a row, employers added a dismally small number of jobs, showing that the United States economy is barely creaking along despite being two years into the official recovery.

With all levels of government laying off workers, the Labor Department reported that employers eked out just 18,000 new nonfarm payroll jobs in June. The already low number of jobs created in May was also revised downward to just 25,000, less than half what was originally reported last month.

Even as the government’s survey of employers showed that they were adding an anemic number of jobs, a survey of households showed that more people were out of work, causing the unemployment rate to rise to 9.2 percent.

Economists were stunned since they had been expecting June to show stronger job creation as oil prices eased and supply disruptions receded in the aftermath of the Japanese tsunami and earthquake. Instead, the government’s monthly snapshot of the labor market showed that several sectors, including construction, finance and temporary services, actually shed workers. At the same time, leading indicators like wages and the length of the average workweek, which tend to grow before employers begin adding more jobs, actually contracted.

“Even the wild-eyed optimists out there have nothing to grasp onto in this report except to say, ‘Ah, this too shall pass,’ ” said Joshua Shapiro, chief United States economist at MFR Inc.

Meanwhile the stupidity continues on the left. A perfect example is found over at The Hill:

President Obama’s senior political adviser David Plouffe said Wednesday that people won’t vote in 2012 based on the unemployment rate.

Plouffe should probably hope that’s the case, since dismal job figures aren’t expected to get any better for Obama and the economy on Friday.

Most economists expect a report from the Bureau of Labor Statistics to show that the nation added about 100,000 jobs in June. That’s not enough to keep up with population growth, let alone lower the unemployment rate or make a dent in the 9 million jobs lost during the so called Great Recession.

[UPDATED: The jobs report released on Friday showed the economy added only 18,000 jobs, much less than anticipated. The unemployment rate creeped up to 9.2 percent.]

It’s looking more and more like Obama will have to do something no president has done since Franklin Roosevelt: Win reelection with unemployment around 8 percent.

I have a sinking feeling that Plouffe is making a seriously stupid miscalculation ; and one that the Republican Party is going to take full advantage of, come November 2012.

The stupidity continues over at the NYT, again with the stupidest Economist ever to be allowed to write for a paper:

Ugh. That was a seriously ugly jobs report. Almost no job creation, with slow private-sector growth offset by falling public-sector employment; a falling employment-population ratio; and (I don’t know how many people have picked this up), an actual decline in wages, albeit a small one.

Let me emphasize that last point. My bottom line on the inflation-deflation issue has always been to look at wages; you can’t have a wage-price spiral if wages ain’t spiraling. And they aren’t, to say the least.

It’s important to realize, by the way, that stagnant wages are NOT good for recovery; all they do is ensure that the burden of debt relative to income remains high, keeping demand and employment down.

The situation cries out for aggressively expansionary monetary and fiscal policy. Instead, however, all the political push is in the opposite direction.

The underlined part and the part above it; is where the stupidity really kicks in here. That stupidity above, is why this damned Nation is in the place that it is now. Because of stupid people like Krugman. These idiots, in a sane World, would be tossed out of this Country for causing one of the most horrible economic collapses in this Nation, since the great depression, which caused many Americans; Conservative and Liberal, to lose money that they rightly earned or invested in and profited from.

This is not to say that the Republican was not to blame; they too stood by and did nothing and for that they paid a price during the 2006 and 2008 election cycles. However, America was not fooled the Democrats proceeded to make some of, if not more, of the same mistakes that the Republican Party made, while in power. For this, they paid in 2010 and will pay again in 2012.

Further more, it was the DEMOCRATS, not the Republicans, who sought to game the housing market, with the Community Reinvestment act of 1973. Of which the Democrats added the sub-prime cause, which caused the Housing Market to become unstable; which essentially caused the markets to collapse. Yes, regulation was ripped out; but it was the adding of the sub-prime clause that caused the major problems that set the housing market up for a horrible downfall. I know, I watched it all happen here, in real-time, while blogging it all.

In fairness, I will say this; because I am not an overly partisan blogger. It also was the Neo-Conservatives, with their one war, that was totally unjustified in their idiotic visions of a Democratic middle east and the quagmire that it created, not to mention the millions spent and the lives lost; that also created this mess as well. If we would have fought the Afghanistan properly and not like we did Iraq; the war would have been much shorter and would have cost us much less money.

Others: The Atlantic Online, Hot Air, Washington Monthly, Firedoglake, The Huffington Post, Washington Post, The Nation, Calculated Risk, New Deal 2.0, Booman Tribune, Freakonomics, Economix, Free exchange, Speaker, AmSpecBlog, JustOneMinute, Oliver Willis, Gothamist, Hugh Hewitt’s TownHall Blog, Economist’s View, Shakesville, Lynn Sweet, ThinkProgress, Daily Kos, Truthdig, Emptywheel, AMERICAblog News, Lawyers, Guns & Money, FrumForum, The Huffington Post, The Note, The Hill, And So it Goes in Shreveport, AMERICAblog News, Hot Air, Taylor Marsh, Pajamas Media, Scared Monkeys, Outside the Beltway, NetRight Daily, The Western Experience, GOP 12, Le·gal In·sur·rec· tion, National Review, The Lonely Conservative, americanthinker.com, msnbc.com and FrumForum and more via Memeorandum

David Morgan and Chris Vermeulen talk about Metals Trading

Posted on

I do these posts here to help with the financial situation around here, or in my case; a lack of it. As it does say, up in that top left hand corner box on here; I have no had a “real job” since 2005.  So, if you would please click on the links and sign up for the newsletters. I get a nice referral fee, if you do. This is for those who do not like or do not trust Paypal. Every little bit helps! So, if you want to help a unemployed “right of center” type of guy, who has a blog, this is the time to do it. Thanks so much!

-Pat

—-

The Audio:

[podcast]http://www.netcastdaily.com/broadcast/fsn2011-0520-1.mp3[/podcast]

More info Here

You can also see Chris Vermeulen’s last forecast, where he nailed the prediction on what Silver would do in the markets.

 

Video: GUEST VOICE: Jack Hunter Asks “Have We Forgotten 9/11?”

Posted on2 Comments

Transcript at Jack Hunter’s HQ

Two very interesting articles

Posted on

Two Authors that I happen to enjoy, have put two articles out, that I thought my readers would enjoy reading…

They are:

Chuck Baldwin – THE AMERICAN REDOUBT

James Wesley – Move to the Mountain States–The American Redoubt

Yes, I am fully aware, that there are some people who happen to believe, that these two people are on the “Third Rail,” when it comes to American Conservative Politics. That might be so; but I would rather read them and be informed, than to read mainstream sources and be totally unprepared for what might happen.

Some people say that Chuck Baldwin and James Wesley peddle paranoia.  I like to think that they both of them promote Preparedness and Christian values. Which is more than I can say for some blog out there, that promote big Government Conservatism.

Enjoy the Articles.

 

Could the DOW Could Fall 6,000 Points??!?!

Posted on

Someone thinks so… (H/T GoldSilver.com)

Video:

The Story via Business Insider:

There’s a distinct possibility the U.S. stock market could plunge as much as 6,000 points if the U.S. continues to rack up record amounts of debt, causing the dollar to lose its reserve currency status, says Daily Ticker favorite Howard Davidowitz. (See video below)

“The dollar has never been at greater risk,” he tells Henry in the accompanying clip. Davidowitz is confident that if Washington doesn’t cool its spending habits, interest rates will spike and inflation will soar. Look at the value of the dollar, and the crisis is already brewing, with foreigners and sovereign nations diversifying away from dollar-denominated assets, he says.

What’s an investor to do in this scenario?

Buy hard assets, he suggests. Davidowitz says investors should own physical gold, silver and diamonds. He also thinks land is a winning bet, even suggesting young adults buy and work farmland. “I think investment in farmland with water on it is a great investment. Finance will be less important,” in the future, he says.

Sounds like a good time to buy gold to me!

It all goes back to the Federal Reserve

Posted on

I thought I would share this one with you all.

It seems that food prices are going up. I spotted this blog posting over at HotAir.com; which is, a Neo-Conservative Blog. Anyhow, Ed Morrissey points out that food prices are going up. Ed points to this story by the AP:

WASHINGTON (AP) — Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.

Separately, the Commerce Department said home construction plunged to a seasonally adjusted 479,000 homes last month, down 22.5 percent from the previous month. It was lowest level since April 2009, and the second-lowest on records dating back more than a half-century.

The building pace is far below the 1.2 million units a year that economists consider healthy.

There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months.

Still consumers are paying more for the basic necessities.

Why is it that prices are going up? Well, I can tell you why…. It’s called inflation. Something this guy here has been talking about for years:

Of course, Ed Morrissey, tries to credit the shrieking harpy and two bit phony Sarah Palin for this; but we thinking Americans know better. Sarah Palin most likely cannot even program her own VCR, much less understand the workings of the Federal Reserve. Ron Paul was saying this sort of stuff, when Sarah Palin was still playing with dolls and dreaming of being someone in politics as a child.

Scott Johnson over at Powerline, smartly and very accurately points to the federal reserve bank for this rise in food costs, he also points to a Wall Street Journal Op-Ed that warned of this sort of a thing happening. Yes, I know, Powerline Blog is decidedly Neo-Conservative; but when it comes to this sort of stuff, those guys are in the right frame of mind. I just wish I could convince them that imperialism is a sad mistake —- As are unconstitutionally declared wars.

It also turns out, that the Federal Reserve Bank is not the only part of the Federal Government that is a danger to it’s citizens. There is also other things that we should be, as citizens, worried about; like the ill-conceived and improperly named “Patriot Act.” As this video shows, that act is being used against citizens in a very bad way: (H/T RTR.Org)

The part about the raid on Walter Reddy, the founder of the modern Committees of Safety is in this video. I do encourage you all to watch it. If this man’s story is true. If someone does not like you; they can go to your local police department and makes up actual lies about you and cause the police to conduct a raid on your home. That my friends, is insanity.

As you might expect, I post this video with a disclaimer; Just because I post this, does not mean that endorse the products being sold or the overall conspiratorial tone of the video. I simply post this for informational purposes only.

Update: Mark this on your calendars; this one of the rare times, when I actually agree with Lew Rockwell.