Kicking Spain Out?
While it was absolutely necessary to fall over backwards to help Greece, the same cannot be said for Spain, and soon Italy. Mario Draghi’s promise to do “whatever it takes” to save the euro may mean more urgent measures when it comes to Spain. If being kicked out of the euro-zone is Spain’s only option, hopefully, they will follow Iceland’s example and remain free.
Chinese City On Verge of Bankruptcy
While everyone has been expecting the muni collapse to take place in the US, it now turns out that Dongguan, once one of the richest cities in China with nearly 10 million people, is now on the brink of bankruptcy. The city’s desolate factories and huge deficits could foreshadow a wider fiscal crisis as China’s economy cools.
Signs World Economy Is Getting Weaker
Here are a few signs…
1. The Shanghai Composite index fell to its lowest point in over 3 years earlier this week.
2. The Bank of Japan has resorted to yet another round of money printing.
3. The unemployment rate in France has risen for 16 months in a row.
4. GM is on a path that will lead to bankruptcy again.
QE4? Banks Complaining QE3 Not Enough
Surprise folks, the $40 billion a month is not enough to satisfy the crack heads on Wall Street. For example, Adam Parker, of Morgan Stanly says that “QE3 will likely be insufficient to significantly boost equity markets…” So what is the Fed going to do when the stock market crashes and the credit market freezes up like in 2008? Announce QE4 and then very shortly after, these crackheads will start calling for QE5.
Silver is Hot
Tom Cloud, of the FTM Daily radio show and who has been in the precious metals business for three decades, says that the gold/silver ratio got out of kilter because central banks are buying a lot of gold in anticipation of Basel III making it a Tier One asset. He says that he is seeing a lot of new buyers and those increasing their portfolio in precious metals percentage wise. So, after preparing, keep stacking physical.
U.S. Consumer Spending Increases
The good news is that consumer spending increased 0.5 percent in August. The bad news is that 70 percent of the increase was due to gas increasing by 28.2 cents per gallon. Remember that energy price increases are not counted in the official inflation calculations. Translation: stagflation.
America Turns to Mobile News
According to a Pew Research Center survey, more people are turning to social network sites, online news and websites like Drudge Report to get their news. Those getting their news from TV is down to 55 percent and only 23 percent read a newspaper. Fully 29 percent of Americans under 25 said they didn’t pay attention to news. A possible reason is that more and more people are sick and tired of being lied to being lied and intellectually insulted by these corporate has-beens.
Finally, please prepare now for the escalating economic and social unrest. Good Day!
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