At a conference in Moscow, Marc Faber laid out the crisis that he sees coming in the next 10 years: Interest on U.S. debt will crush other spending, then inflation and depression will take hold and eventually lead to war.
“Maximum, within 10 years time more than 35 percent of tax revenues will have to be used to pay the interest on the government’s debt, and then you’re in trouble, because then there is not enough money out of the budget to pay for other stuff,” Faber said.
“I am convinced that the U.S. government will go bankrupt, but not tomorrow, and before they go bankrupt they’ll print money, and then you get very high inflation rate, then you get depression with high inflation and eventually they’ll go to war.” (more)
Wednesday, February 10, 2010
Australia close to defaulting on debts: Joyce
Opposition finance spokesman Barnaby Joyce is courting controversy again, warning that Australia is getting to the point where it will not be able to repay its overseas debt.
Senator Joyce says the Federal Government is borrowing billions of dollars from overseas to fund stimulus spending and programs like the National Broadband Network.
And he has questioned whether the Government is in a position to repay those loans.
"We're going into hock to our eyeballs to people overseas," he said. (more)
The Transfer of Risk from Wall Street to Main Street – How the Bailouts Shifted 3 Gigantic Risks from Wall Street in Housing, Banks, and Jobs to Avera
There is a false security in our current economy. The belief that the current banking industry is now healthy simply because the government supports it is misguided in valuing the real risk inherent in back stopping Wall Street. Or the idea that deposits are safe up to $250,000 in commercial banks because the FDIC seal is on the door. Keep in mind the FDIC insurance fund is now insolvent. Or the notion that jobs are no longer needed for a recovery. This of course is all false. What has occurred under the veneer of stabilizing the banking sector is that the ultimate risk has now been transferred to the American taxpayer. It has already been made clear to Americans that no too big to fail bank will fail. Yet does this somehow fix the trillions in toxic assets that still remain? It doesn’t but what it does do is shifts the risk to the average American. (more)
Canadian Prime Minister Delivers Global Governance Plan
During the January 2010 World Economic Summit in Davos Switzerland Prime Minister Stephen Harper, the current Chairman of the G-20, presented the upcoming agenda for the G-20 and G-8 meetings to be held in Ontario in June. Many were shocked to hear this Conservative leader declare that “we also know markets need governance. For the new global economy, the G-20 is what we have.” Harper went on to speak as an avowed Keynesian committed to a one world global economy, creating a world “we have been trying to build since 1945”.
He went on to warn the world that national self interest sovereignty must be opposed to stave off a greater crisis than the current recession. For the next several months leading up to and including the G-20 meetings, Stephen Harper will be attempting to convince the world to find global unity of purpose and adopt what he calls “Enlightened Sovereignty”. (more)
Goldman Sachs Wants You to Pay-by-the-Mile to Drive on U.S. Roadways
According to an independent British newspaper editor, in the not-so-distant future, English drivers will be charged based upon the number of miles they drive, as is being done step-by-step in America.
On January 12, AFP interviewed Mike Robinson, the editor of the UK Column, a liberty-minded newspaper not unlike AMERICAN FREE PRESS.
“Road charging,” as it is called in England, is widespread, he told AFP, as fiber optic cable has been laid along most English roads to help track vehicle travel by the mile so drivers can be charged. (more)
On January 12, AFP interviewed Mike Robinson, the editor of the UK Column, a liberty-minded newspaper not unlike AMERICAN FREE PRESS.
“Road charging,” as it is called in England, is widespread, he told AFP, as fiber optic cable has been laid along most English roads to help track vehicle travel by the mile so drivers can be charged. (more)
The Bankrupt PIGS of Europe
They are called the PIGS—Portugal, Ireland, Greece, Spain. What they have in common is that all are facing deficits and debts that could bring on national defaults and break up the European Union.
What brought the PIGS to the edge of the abyss?
All are neo-socialist states that provide welfare for poor people, generous unemployment, universal health care, early retirement and comfortable pensions. Most consume 40 percent to 50 percent of their gross domestic product annually, a crushing burden on the private sector. (more)
What brought the PIGS to the edge of the abyss?
All are neo-socialist states that provide welfare for poor people, generous unemployment, universal health care, early retirement and comfortable pensions. Most consume 40 percent to 50 percent of their gross domestic product annually, a crushing burden on the private sector. (more)
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