Sovereign Debt

…In a debt crisis, Washington, Wall Street and European governments still seem to think that the only way to “restore investor confidence” is to pump in massive amounts of rescue capital, bail out the sinking ships, and plug the biggest leaks in the system…..

This 30-page update (in PDF form) looks at Precious Metals, Stocks, Commodities, Bonds, Currencies and China….

Ferguson notes how spiraling debt and deficits foster a loss of investor confidence…..

The fact that the U.S. dollar has managed to hold its own despite representing a country deeply in hock is only testament to the weakness of every other major developed-world government.

The president has proposed a freeze on some domestic spending, but the freeze will impact only a small portion of the budget, would not kick in until next year, and would include a mix of spending cuts and spending increases. It would have zero impact on the 2010 deficit and little impact on future deficits.

Remember that Japan is about 10 years ahead of the US, in terms of its economic crisis. The deflationary forces that have plagued Japan are now plaguing the US. Because of its domestic savings……

Coming Soon: The Bill for the Massive U.S. Debt Americans could be in for a rude awakening in coming months when they discover the true scope of the massive national debt racked up by the U.S. government. In fact, the $1.6 trillion deficit expected for 2010, which is above 10% of gross domestic product (GDP), … Continue reading

The price decline in 30-year Treasury-bond prices has been even more dramatic: An historic 27-point plunge from 142.62 on December 19, 2008, to 115.67 on June 18, 2009 … followed by a feeble recovery … and now, as with Treasury notes, a new, ominous price decline and surge in yields.

Yesterday I interviewed friend and colleague Dave Skarica, of addictedtoprofits.net. We discussed Treasuries, the Sovereign Debt bubble, the US Dollar, Gold and Gold Stocks.

Last week I interviewed Todd Harrison, founder and CEO of Minyanville. The main topic of our conversation was currencies and how action in the currency market (specifically the US$) could be a trigger for the next phase of this crisis, which has also morphed into a socioeconomic crisis. We talked about the chances of a … Continue reading