The Golden Truth: Geithner Asking For $2 Trillion To Run The Government Thru FY 2012

Wednesday, May 4, 2011

Geithner Asking For $2 Trillion To Run The Government Thru FY 2012

That's just a complete joke. What happened to expense-cutting and prudent fiscal management? This will take the "on-balance-sheet" debt load to well over $16 Trillion. Who the hell is going to buy that paper, given that Asia is now cutting back on dollars? Anyone still want believe that the Fed is done printing? Here's the link: Geithner Is A Complete Joke What happens after that debt-ceiling is hit? Anyone who thinks that this is the last debt limit increase is a moron.

3 comments:

EdwardoWednesday, 04 May, 2011
It's been an interesting day so far in PMs, the dollar and the share markets as they are all falling together. In the meantime, FWIW, the controversial Marty Armstrong has a cycle turn date in early/mid June. My personal opinion of Mr. Armstrong varies, but there is little doubt in my mind that he is a formidable technical analyst, and I would rather, regardless of my long term view of gold, see it fall into that date than rise. Presently, it seems quite clear that we have made a meaningful "technical" top in PMs.
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JoeWednesday, 04 May, 2011
I would buy in to a transitory top in PM's for the time being. However, all one need understand is the USD is barely hanging on as the FED/USG is still spending wildly with no end in sight.

I would not be surprized to see the USD roll over within a few weeks and head toward 50. Then the PM's will blast off to the stars.

Joe M.
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AnonymousThursday, 05 May, 2011
Just in case anyone still thought the Gov't felt any sense of urgency to address the real issues in the US...

The White House and Republican leaders "are discussing a deal that would enact strict deficit targets and some spending cuts to win Republican votes for lifting the ceiling on how much the federal government can borrow," the Wall Street Journal reports.

"The deal would defer contentious decisions about Medicare, Medicaid and taxes until after the 2012 elections. If such an agreement were reached, it would allow both sides to assure financial markets and the public of their commitment to reducing the deficit and then use next year's campaign to lay out their competing visions for the future of major government programs."

WTF? are these people serious? After the 2012 elections, so 1.5-2 years? we're doomed.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.