Financial Meltdown 2011 Fast Approaching

Interest-Rates / Global Debt Crisis
Jan 17, 2011 - 09:47 AM

By: Midas_Letter

Despite the best efforts by the American mainstream financial media, the eager PR division of the United States Dollar Ponzi Scheme, to paint the rosiest of rosy pictures for blindly optimistic readers, the stubborn image of a debt-swollen jobless behemoth economy slowly toppling persists. No matter how much U.S. departmental data is primped, polished, and primed, no amount of lipstick is going to transform this fat pig into a princess.

This week’s top harbinger headline points to the fact that the United States is once again bumping its fat head on the ceiling of its spectacularly stratospheric debt ceiling of $14.3 TRILLION dollars. That means an act of congress is once again necessary to lift that limit. The alternative is either a) a revaluation of the U.S. Dollar to reflect the depreciation inherent in Quantitative Sleazing as part of a debt restructuring, or b) default.

Default? Could it be?

Never, according to bright-eyed Harvard educated economists and Forexperts.

"The likelihood of a restructuring of US sovereign debt is zero," says MF global currency and fixed income analyst Jessica Hoversen. "As for a downgrade, while it's theoretically possible, it is still extraordinarily unlikely."

Well that’s one opinion.

The U.S. is Smoking Crack

The rate at which U.S. debt is growing is well beyond what it could repay, even if the economy were to start growing at 10% per year. That’s because the rate of U.S. debt growth in the last 3 years is well over that figure, and since 2002, the debt has more than doubled.

This is the mathematical certainty that is assiduously kept out the press by accommodating editorial boards.

Lets try to sift through the contradictory headlines and see if we can’t discern something a little more reminiscent of reality.

First off, the United States Federal Reserve, apparently a private corporation whose self-declared mandate is to be “the central bank of the United States, that provides the nation with a safe, flexible, and stable monetary and financial systemâ€