Yeah -- well -- yeah; if you think you constitution is up to some hard goes! Read the long article though, the teaser will just let you off too light! Please keep in mind this is about a month old now and things ARE moving right along!
My personal note is that everybody except Iran and China bought us some time, sort of like a fish on a stringer about to expire in a falling tide when suddenly a far off storm causes a surge that unexpectedly brings the water level back over the stringer! That's what the disintegration of the euro-economy/banking system has done for us! This rising tide will not lift all boats because it is nothing like universal! Keep your eye on Greece! ~Hal~ ----- Forwarded Message ---- From: "[email protected]" <[email protected]> To: [email protected] Sent: Sun, January 10, 2010 9:51:26 PM Subject: Highlights below from the following web site... Some facts that you may want to ponder that will eventually affect us all whether or not you care... Full Circle of Government Debt Default Jim Willie CB December 16, 2009 Read the entire article here: http://www.gold-eagle.com/editorials_08/willie121509.html The discredit and death of the central bank franchise system showed first clear evidence in September 2008 on Wall Street. The unique mysterious aspect of banking systems is how they cannot be rebuilt once they turn insolvent. They rot in place, a process accelerated by rotten ethical values, euphemistically called moral hazard. To be sure, much so-called money flows through the dead rotten parts, but nothing becomes resuscitated except balance sheets. And besides, those balance sheets only look better due to accounting rules changes that deviate from mark to market (reality). The distortions magnify and turn cancerous. See the outsized mortgage bonds with no value at all. See the foreclosed homes withheld from the market for sale in bloated bank inventory. See the big bank balance sheets with large entries of idle money sitting in the US Federal Reserve. Two major billboards must be written and read. 1) The USFed is insolvent. 2) The USFed is dangerously over-leveraged. According to its latest report, the US Federal Reserve owns over $1 trillion of mortgage backed securities, equal to 45.6% of the entire portfolio. One year ago mortgage backed securities were under 1% of its total assets. Actually the number was 0.6%, to make a 76-fold increase in toxic mortgage bond assets on the USFed balance sheet. The credit market actually believes the USFed stepped in and helped the system. But in doing so, they killed themselves. Just like other major banks such as the Wall Street firms, the USFed is very highly leveraged. The USFed carries $2157 billion of debt on $52.8 billion of capital, producing a leverage ratio of 40.8 to 1 ratio. Think over-leveraged, insolvent, and dead, but not yet declared dead. One might actually wonder if they might actually resign their commission contract to prevent further losses. That would cause a USTreasury Default!
