You Can Stiff Some Of The People Some Of The Time
by Captain Hook
August 11, 2008
http://www.safehaven.com/article-10968.htm
But, you can't stiff all the people all of the time. To what do we refer? Answer: The likelihood that once the Beijing Olympics are over, because increasing defaults of US corporate paper / agency debt leave a worsening bad taste on foreigner's palates, demand for domestic sovereign debt is expected to wane at an accelerating rate, which would send bond yields (market rates) higher - possibly much higher. Up until this point, Wall Street bankers think they can flog trillions of worthless CDO's and other toxic junk around the world with no ramifications. They think the world will just adsorb trillions in losses on fraudulent junk paper and keep coming back for more. But I can assure you this is not the case. The seeds of destruction of the Western banking model (globalization) have now been planted, and it's just a matter of time before this next card falls in the destruction of our fraudulent and corrupt monetary system.
Naturally then, this would mean that US borrowers (along with everybody else) are likely to face steadily increasing costs with an accelerating reduction of flows into domestic debt securities, especially with skyrocketing defaults reducing foreigner's appetites for all forms of American debt securities. The most recent TIC data shows no problem today the US's large trading partners, with steadily increasing flows into Treasuries - Japan being the exception. But again, once the need to 'save face' for the Chinese is passed with the Olympics this summer, one does need wonder if they will join Japan and cut back on Treasury purchases, especially if the economy continues to weaken, meaning they simply have fewer dollars to buy anything. In this regard you should know the economy is expected to continue weakening, with slower trade being the result.
Internet Censorship Alert
Internet Censorship Alert: Alex Jones exposes agenda to 'blacklist' dissenting sites (March 14, 2010)
As I predicted, the Obama Administration is trying to shut down the Internet - at least the parts he doesn't like. Barack Obamas regulatory czar, Cass Sunstein has stated that he wants to ban conspiracy theories from the internet. Think about what this means - Every video, every website, every blog, every email, that exposes or just criticizes the government for any reason whatsoever could be labeled a "conspiracy" and taken down. Your home could be raided in the middle of the night, and you could be carted of to jail for criticizing the government. All they have to do is call it a "conspiracy theory".
http://www.youtube.com/watch?v=aqAWmBLFodE
Thursday, August 14, 2008
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