The significant problems of our time cannot be solved by the same level of thinking that created them - Albert EinsteinClearly Einstein did not consider the element of Governmental and banking system fraud and corruption in implying that significant problems can actually be solved.
Someone sent me a news link which reported that the Greek deputy foreign minister resigned in protest over the "tough" austerity measures being demanded before Germany and the IMF will sign off on bailing Greece out with German and U.S. taxpayer money. This is hilarious. What the hell do these politicians want?
With Greece you have a big portion of the population living off of Government handouts and the labor force getting subsidized pay. Those transfer payments have to be paid for in some way. Unless Greece can figure out how to suddenly generate a massive amount of economic growth, then either the Government handouts have to be cut back drastically, forcing people either to work or become more impoverished, OR they can print money. What's it gonna be, Greece? Italy, Portugal and Spain are barrelling toward the same brick wall and the scope of the same problem in each of those countries is even bigger.
Funny thing is, the dilemma as I just described it in Greece is identical to the same dilemma facing the United States. Only the problem here is bigger than the entire EU combined. The only difference between Greece et al, individually, and the United States is that none of those EU Governments can unilaterally crank up the printing press and monetize their debt.
Ironically, Obama just announced that the budget deficit forecast will be even bigger in 2013 than for 2012, which is bigger than 2011. Obama is thus telling us that the debt limit ceiling will have to raised several more times during his next term. At some point the rest of the world is going to stop recycling their U.S. dollars back into Treasury bonds and that's when the real fun begins in this country. At that point in time, the Government can cut back drastically on welfare/entitlements and defense spending - and thereby throwing a massive number of people into destitution - or print trillions. I would be on the latter and you can do that by moving as much of your fiat paper dollars into physical gold and silver - not GLD, SLV, CEF or GTU.
And now for the ultimate Friday comedy: Bernanke gave a speech LINK to the National Association of Home Builders today and made this statement:
HOUSING MAY NO LONGER BE VIEWED AS SECURE INVESTMENTHmmmm...Bernanke is a real Einstein there with that statement. I wonder if Bernanke thinks of himself as having figured out something there along the same lines as figuring out how split the atom...Enjoy your weekend.