"Nothing justified these [TARP big bank] bailouts. It was nothing more than corrupt politicians stealing our money to pay off the bad luck and skill of their gambling friends." -- Paul Volcker (former USFed Chairman)
"If something cannot go on forever, it will stop." -- The Stein Rule (named after Herbert Stein, Chairman of the Council of Economic in the Nixon Admin)
"The global economy is currently taking the Botox Cure. A flood of money from central banks and governments, the financial botox, has temporarily covered up unresolved and deep-seated problems. The surface is glossy and smooth, the interior decayed and rotten." -- Satyajit Das (global credit derivative superstar analyst)
"Apparently heroin addicts can become so drug dependent that their bodies cannot withstand the shock of withdrawal, and failure to continue taking the drug triggers multiple organ failures. I just wonder how apt that analogy is to our government debt dependency today." -- Dylan Grice (Societe Generale bank analyst)
[Editor Note: the entire global financial system, in particular the United States, has entered a crisis mode, with every conceivable element and plank broken, corrupted, or artificially propped by government supports. Therefore, no Macro Economic Report is given.]
CRITICAL TIDBITS
◄$$$ THE SUBPRIME DEBT ISSUE OF 2007 BLOSSOMED INTO A GLOBAL CREDIT CRISIS. THE DUBAI SOVEREIGN DEBT ISSUE WILL BLOSSOM INTO A GLOBAL SOVEREIGN DEBT CRISIS IN SIMILAR PATHOGENESIS. THE START & END POINTS ARE LOCATED IN THE UNITED STATES AND UNITED KINGDOM. WITH THE GLOBAL CLIMAX COME DISRUPTION, RESTRUCTURE, AND CHAOS. $$$
The subprime mortgage problem was grossly under-estimated. The Hat Trick Letter called it the beginning of an absolute bond contagion, a global credit market collapse correctly forecasted. The Dubai debt collapse represents the start of a global rotation of government debt collapse. Dubai has more then $385 billion in debt that has not been disclosed yet, so claims an informed source. Furthermore, Kuwait is among other Persian Gulf nations with major debt problems, soon to become clear. The sovereign debt eruption in Greece will be followed by Italy, Spain, Portugal, and even France. The German wellspring will not rescue Greece, despite all spun political niceties. Recall my great vicious circle of debt shown two months ago, whose crises begin in the US & UK. The debt ripples will end in the AngloSphere also, with a US$-centric global monetary crisis and their own sovereign debt defaults. Monetization of USGovt debt will soon be isolated, in full view, and serve as the focal point for a global monetary crisis. The Dollar Death Dance began in autumn 2008 with the US$ exchange rate rising. The US$ rallied because it died. The Dollar Death Dance part II began in December 2009. It rallies again because fiat currencies are all dying. As monetary crisis comes full circle, pushed by gargantuan government deficits on a global basis, the US$ will again resume its powerful decline. The Enronization of US financial structures is gradually being exposed, replete with false accounting, diverse hidden tentacles, and prolific slush funds. The credit climax will be a global shock wave, a grand restructure of financial structures, tremendous disorder & chaos, dislocations of important supply chains, and enormous challenge. Prepare! Gold, silver, and platinum will be survivors left standing!!
