The U.S. Is Really On The Hook for $35 TRILLION Dollars, or the Case of the $16 Trl Hole at the Fed
The big event of the weekend was the European Union outlook being changed to negative from stable by Moody’s.
This week will be interesting due to non farm payrolls data on Friday.
The following week should be a barn burner with an FOMC meeting, G20 gathering and German Constitutional court ruling on tap.
The gold pattern has been bullish, although again I remind that the upper push is reliant on QE returning/weaker dollar scenario remaining intact. So the news is not completely bad for gold investors since the Central Banks are being backed into a corner (reference the first line of this little note) to create ever more banking reserves, better known as “printing”. I am for the first time in a long while excited by what I see happening with both gold and silver prices. But let this be a warning: Fed bashing of gold is not going away anytime soon. The sense of investors shall have to prevail. The march for $2,000 is on, but whether it is a straight line up remains to be seen.
The U.S. is poorer than you realize thanks to Ben Bernanke, the Central Banker chosen by Bush and allowed to continue by Obama. It only further proves that both mainstream parities are in on the fix: Spending the country to death.
The national federal debt this week shall cross the $16 trillion mark this week. That’s not a partisan shot since I would have been equally amused if it had crossed $16 trillion last week. Both partyies are BIG GOVERNMENT profligate, elitist (do as I say not as I do) spenders. One party likes to spend on the war machine, the other likes to spend on programs that keep people dependent on the government dole; each rely on corpratism for their core funding — all shabby in my book.
The Fed balance sheet (the place where the Fed stores assets it bought at par but are wortheless, or a sort of land of very expensive misfit toys) is nearly an officially reported $3 tril. But let’s be really honest: a recent audit of the Fed has uncovered a missing $16 trillion (Page 131 in GAO pdf below and yes I read through all of it) that was lent by the Fed to the banking system, most notably to European banks (11 of them) at the height of the financial crisis over 3 years ago.
We are really a nation with $35 trl that will someday need to be paid and squared up (not counting easily over $75 trillion in liabilities the next 20 years from social security and other health care spending).
Fpr further reference: 1st Audit Results of The Fed’s 100 Year History Posted Today,They’re Startling!–We Know the Secrets of the Fed http://www.weknowthesecretsofthefederalreserve.com/first-audit-results-in-the-federal-reserves-nearly-100-year-history-were-posted-today-they-are-startling/
The financial system is piled high and deep – a reflection of its corruption. If anyone tells you otherwise, walk, no, run away from them. Shame on the MSM for not covering this.
All the more reason to be buying gold and silver.
Rekated: ZeroHedge | On a long enough timeline the survival rate for everyone drops to zero http://www.zerohedge.com/news/june-foodstamp-recipients-hit-all-time-high-three-times-many-americans-enter-poverty-find-jobs
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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