Signs of change are shown in every aspect of the economy. The recent panic on the floors of the stock exchange, as the Dow Jones Industrial Average plummeted into the most powerful nosedive marked an inability to launch new programs to buttress the world economy. Last year, to prevent a double-dip recession the Fed had opted the QE2 to save the stock market. Now with the downgrade that was not only a significant blow to the US economy and reputation, it has increased the borrowing costs making bonds more risky. Should the Fed have to turn on the printing machine to avoid a hard economic recession, is the question awaiting answer today. Consensus is that the US government has no choice. Will it happen? Do children like Christmas? However, it will have a worse affect than the previous QE’s. With a poorer economy today, the country will have a higher inflation, higher unemployment, and higher borrowing costs for average Americans. Not to mention that a QE3 will be a potential and final death to the stock market and the US dollar! But as choices are limited where the US can reach for help, US finances have gone from sustainable to unsustainable mess with the dollar further slumping. Read More→

It was a global bomb Monday night. Wall Street dropped the largest points as the stock market declined 634 points, the worst decline in 112 years. The total value in paper lost millions. And, if that’s not enough! While riots in London continue, and more than 300,000 Israelites are protesting the government and demanding social justice, the Eurozone resumed its decline. Fear has pushed Spanish and Italian bonds higher for those countries in need of bailouts while Germany want both debt starved countries to sell of their gold to stem ECB bond buying. Italy’s gold reserves are the fourth-largest in the world, “They should fix their own budgets, something they can accomplish through privatizations and selling their gold reserves,” argued CDU spokesman Michael Fuchs. Thus, as economic and political world pressures keeps crumbling, fear of recession has pushed top money people to liquidate what stocks they have and go for gold. After starting the year at $1,421.40, gold jumped a record high early Tuesday as it rose $21.50 per ounce to $1,737.70. Read More→

Faced with far more depressed economy then imagined, the downgrade rating decision by S&P is the first ever in US history. This is just the latest consequence of an out-of-control economy. It’s humbling, but perhaps a wake up call, regardless whether it was a correct decision not by the S&P or not. The fact is, it set the fire of panic in an already undisciplined government with varied political aspirations, while passing the blame on one another. Washington is quiet as the downgrade marks the undeniable debt and inability to solve it. Read More→

All the markets around the world are linked to one another. From America to Europe, Asia and to the Arab world, the happenings in the economic markets are so mind boggling, that even with attempted corrections, their consequences seem irretrievable. When one in every 111 American home are being foreclosed throughout the US, it shows the government is not the only the culprit adding to the problem, but banks. Yet banks are pretty much run by the government, so the blame goes right back into the leaders controlling the banks. If something goes wrong well the government will be there to save them. In the case of the US, it’s the big banks running the country with the Fed at its helm. Read More→

When one is prevented reaching by governments, it brings about an enforced situation where aberration flourishes in all societies and nations. While the world has been watching Capitol Hill unfolding on its responsibilities, trying to catch up and handle the debt ceiling deficit signed into a law yesterday by President Obama to avert a default, it further added to the crises Americans are facing. “I want to be crystal clear. Nobody has talked about increasing taxes now. Nobody has talked about increasing taxes next year. We’re talking 2013 and the out years”, President Obama stated. Read More→

Is it over? Capitol Hill’s red white and blue fireworks left many Americans in fear of residuals dropping into their laps.

The House has reached the required majority to pass the debt limit increase. There remains the continued concern over Eurozone and possible loss of US AAA credit rating. At 6:08 p.m., Eastern Standard Time, the following statement came from the White House: “The bill would increase the debt ceiling to a level that will be sufficient for the Nation to meet its obligations through the beginning of 2013”. In layman term it means, that the debt ceiling is layered and controlled in the future. In other words, raising the debt ceiling at first will allow the US Treasury through 2012 to put caps on spending, thereby reducing the deficit by $917 billion over the years. Secondly, an automatic cut with another round of $1.3 trillion cuts to come into effect to further boost the economy and then the by partisan joint Committee called the Supper Congress, will come up with another deal in September with more tax increases that could bring back SS, Medicare etc., into the deal. Read More→

Economy is a sleeping giant or a ripening cadaver. With more than $9 trillion of publicly traded Treasury debt held world wide, gold has become the only safe security with somewhat momentary Swiss Franc to anchor investors in the global markets. Read More→

The US Congress is unable to agree on spending cuts and revenue increases, while more cholera epidemic holds Tahiti in a death grip. Adding to an already existing global economic mess, the disease is ravaging the country, undermining the Third World Development. Killing 6,000 people with another 14,000 affected by the infirmity spreading throughout all regions already mired in historic debt and in danger of complete economic collapse. Haiti is much worse than any other country in the Americas and as bad as anywhere on Earth. Some are blaming the United Nations while others the Americans for remaining hopelessly in debt. Read More→

To understand the aberration in any system, one simply needs to look at the present economic actions being structured throughout world governments. The fact that there are forces building toward a massive global economic meltdown has left little trust in governments. The positive aspect to this present economic crisis is, that its time for a good housecleaning if you will. Leaving the doors wide open to reexamine an out of control mechanics in the presently aberrated policies. Such no less evident in the latest crisis yesterday as 50% of Spain’s youth out of jobs were protesting the Spanish government. While millions of Italian are smoldering on a brink of default Greece is going to need a third bailout along with a slew of 19 more European countries heading for default. Each risk sparks a deeper economic crisis for a new global transformation that proves to be imminent. Collectively, world wide debt is much too high and it compounds daily. Bailouts of any kind further dig the debt hole while addressing the political and economical situation as well in the US. Those still in the la-la-Ameriland expecting economic growth by listening to politicians’ own agenda’s, are unable to fathom, the US is in an economical decline. Read More→

Once again, the national fiscal house is far from being in order. Somebody is going to have to pull a rabbit out of the hat not to prolong this stalemate. Watching the President giving an essay type of political speech last night there was no actual written proposal as he insisted on raising the debt ceiling to simply pay what we owe. And why not? President Regan did it 18 times Bush 7 times and so on…so it’s no big deal, except for the fact, the American people will be the collateral. Read More→