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20 Questions for Ben Bernanke

Posted on Apr 26, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

A game of 20 questions with the Fed Chairman…

1. The rescue packages in 2008-2009 were all aimed at restoring CONFIDENCE to the financial system.  Yet from 2001 to 2011 the DXY is down 41.5 and gold is up 473%. Does this not equate to a loss of confidence in the US monetary system? If not how would you explain this phenomena?

2. In March of 2009 you said the ONLY reason you care about Wall Street is because of the affect it has on Main Street. You wanted to become Fed Chairmen to make things better “for the average person”. You have been Chairmen since 2006, do you believe you have accomplished your goal? And if so how?

3. In March of 2009 you stated that “many mistakes were made leading up to the crisis of 2008”, chief amongst them was “enormous amounts of savings has flowed into the United States, and some other industrial countries. That savings has come from China and East Asia. It’s come from oil producers. And it has– and hundreds of billions of dollars, it has come into our financial system....

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10 Economic Doomsday Trends Set to Destroy America

Posted on Apr 21, 2011 in Economic News, Featured Articles – Kevin Hayden

Source: Zero Hedge

Feeling like the daily dose of objective “truth” from Tim Geithner’s latest media circuit has got you down? Fear not: here is MarketWatch’s Paul Farrell summarizing the 10 ways in which the very system is destroying America, to lift your spirits up. To wit: “Doomsday Capitalism? Capitalism is killing America? Yes, that’s the message in my tenth book. “Doomsday Capitalism, 10 Self-Destructive Trends.” But you’ll never see it in print. No one, even book publishers want to read this truth: Capitalism is destroying America. Why? Super-Rich Capitalists get rich off these macro trends. They want happy talk. Back in 2007, Vanguard founder Jack Bogle called my warnings “prescient.” But that didn’t stop the meltdown. Next time financial historians warn of a bigger meltdown; a total collapse has been the destiny of every nation for eight centuries. This time, capitalism is the saboteur.” Cheerful stuff.

10 Doomsday trends America can’t survive

Capitalism has become a religion for the Super Rich, with many such “saviors.” Heresies must be denied, such as this one: Doomsday Capitalism is destroying America from within....

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The Dollar Will Collapse Within 3-4 Months

Posted on Mar 28, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

The US Dollar’s inflationary death spiral continues. We’ve now taken out the 2010 low leaving only two more lines of support before we’re in completely uncharted territory.
At its current rate of collapse, the US Dollar will do this within the next 3-4 months. This means the greenback will break into a new all-time lows by 2H11, which will precipitate the coming inflationary collapse.

Small wonder then that both Gold and Silver recently hit new highs for their current bull markets. With the greenback dropping like a rock, and rumors of QE 3 swirling around the financial community, what sane investor would bet against inflation?

On that note, now is the time to be shifting capital into inflation hedges. Those who buy Gold and Silver will likely do very well in the coming months (my personal view is Gold will clear $1,500 and Silver $40 this year).

We’re also going to be seeing an increased wave of buyouts in the natural resources sector as larger firms look to increase their resources via mergers and acquisitions rather than spending the money to find and develop new mines....

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Investment Legends – “Dollar Collapse Inevitable”

Posted on Mar 23, 2011 in Economic News

Source: Casey Research

via Zero Hedge

What will happen to the U.S. economy and the dollar in the near term? Will inflation increase dramatically? What is the outlook for gold, and where should you put your money? BIG GOLD asked a world-class panel of economists, authors, and investment advisors what they expect for the future. Caution: strong opinions ahead…

Jim Rogers is a self-made billionaire, author of the best-sellers Adventure Capitalist and  Investment Biker, and a sought-after financial commentator. He was a co-founder of the Quantum Fund, a successful hedge fund, and creator of the Rogers International Commodities Index (RICI).

Bill Bonner is the president and founder of Agora, Inc., a worldwide publisher of financial advice and opinions. He is also the author of the Internet-based Daily Reckoning and a regular columnist in MoneyWeek magazine.

Peter Schiff is CEO of Euro Pacific Precious Metals ( and host of the daily radio show The Peter Schiff Show ( He is the author of the economic parable How an Economy Grows and Why It Crashes and the recent financial bestseller The Little Book of Bull Moves: Updated and Expanded....

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US Debt Jumps $72 Billion on Day that House Voted to Cut Spending $6 Billion to Avoid Shutdown

Posted on Mar 16, 2011 in Political Issues

Source: CNS News

The national debt jumped by $72 billion on Tuesday even as the U.S. House of Representatives passed a continuing resolution to fund the government for just three weeks that will cut $6 billion from government spending.

If Congress were to cut $6 billion every three weeks for the next 36 weeks, it would manage to save between now and late November as much money as the Treasury added to the nation’s net debt during just the business hours of Tuesday, March 15.

Hayden’s Note:

I tried to come up with a clever little editorial for this… but I’m at a loss.  It’s like staring at a group of lemmings in shock with their heads in the sand.  What can I really say? 

At the close of business on Monday, according to the Treasury Department’s Bureau of the Public Debt, the total national debt stood at $14.166 trillion ($14,166,030,787,779.80). At the close of business Tuesday, the debt stood at $14.237 trillion ($14,237,952,276,898.69), an increase of $71.9 billion ($71,921,489,118.89).

Since the beginning of fiscal year 2011–which began on Oct....

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Possibly the Last Time to Get Out of the Dollar

Posted on Mar 15, 2011 in Economic News

Source: Sovereign Man 

It’s no secret that the United States government owes a pretty penny to foreigners. Certainly, what America owes to foreigners pales in comparison to what it owes to Ben Bernanke… but still, $4.45 trillion is no small number, even in these crazy times when terms like “kajillion bajillion” are more appropriate to quantify debt and entitlements.
China is the largest foreign buyer of US Treasuries with around $1.15 trillion in holdings… Japan is the second largest at around $886 billion.  Curiously, the trend for China has been down– the Middle Kingdom has been steadily reducing its position since peaking in October 2010. 

Japan, on the other hand, has been steadily increasing its Treasury holdings over the same period. Its government does have a long pattern of currency intervention, and there has been much grumbling in Tokyo about the effects of the strong yen on their exports. 

Fast forward to this past weekend. Earthquake. Tsunami. Volcano. Nuclear radiation. Japan clearly has other things on its mind right now than to continue financing the ongoing largess in Washington DC....

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Why I’m Buying Silver at $30

Posted on Feb 23, 2011 in Economic News

Source: Zero Hedge

by Jeff Clark of Casey Research

Hayden’s Note:

This is not a recommendation to buy or sell.  Personally, I’m in the air about buying at $30.  I would certainly buy at ~$25 and might add a few more at this $30 range, but to each their own.  This author makes a very valid point and points it into perspective near the end.

The silver price has bounced 27% since January 28, a huge advance for a measly 16 trading days. It’s already soared past its 2010 high and was selling for less than $16 this time last year, a double in 12 months. So, is it pricy? Or should we ignore the run-up and keep buying?

I’ve read a few articles that say we should expect silver to drop to the $25 level, and one pinpointed $22. Others, of course, see bullish tea leaves for the near term and believe it’s headed higher. Of those that assert silver will decline, most believe it will be temporary, though one writer claims the bull market in precious metals is over (I think he’s a holdout from the gold-is-a-bubble camp)....

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18 Reasons Why the Middle Class is in Deep Trouble

Posted on Feb 22, 2011 in Economic News

Source: Economic Collapse Blog

Have you heard the news? The stock market is absolutely soaring and according to the U.S. government and the Federal Reserve we are in the beginning stages of a robust economic recovery. The S&P 500 is up 6.8 percent so far in 2011, and the stock market recently hit a two and a half year high. So shouldn’t we all be celebrating? Well, if stock market performance was an accurate measure of economic health, then Zimbabwe would have had one of the healthiest economies on the entire globe during the last decade. But just like Zimbabwe’s stock market was artificially pumped up with “funny money” that was rapidly being devalued, so is ours. All of the “quantitative easing” that the Federal Reserve has been doing is pumping plenty of money into the financial markets and is helping to inflate a false stock market bubble, but it is doing very little to alleviate the suffering of the U.S. middle class. In fact, when you take a closer look at the numbers you quickly find out that the suffering of the middle class is getting even worse....

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Virginia Offers HR 577 and Alternative Currency to Protect Itself from “Likely” Federal Reserve Meltdown

Posted on Jan 12, 2011 in Featured Articles, Federal Reserve & Bankers

Source: Virginia Legislative Information System

Hayden’s Summary:

Virginia has started a process in which it will try and shield itself and it’s citizens from the likely fallout resulting from the implosion of the Federal Reserve’s banking system (and our way of life as we know it).  Several other states have been offering bills that tackle the same subject but in different ways.  Idaho State Representative Phil Hart authored the Idaho State Silver Gem Act earlier this year which allows for the Idaho State Treasurer to issue silver medallions and make them available to the public; people may use them for any purpose they want and will have the option of paying their State taxes with the silver.  Sadly, it was defeated 51-14, but Hart said he will try again in the next legislative session if he is re-elected.

America’s monetary system is based on fiat money, it has no intrinsic value and it is not asset-backed.   Federal Reserve notes have value because of government regulations (the Legal Tender laws) that mandate their use under the threat of fine or imprisonment. ...

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Ron Paul: “The U.S. Government Must Admit it is Bankrupt”

Posted on Jan 06, 2011 in Economic News

Source: Zero Hedge

Any time you bring the two Pauls together in an interview, and start discussing items such as the debt ceiling, government spending, and monetary policy you know the results will be good. Sure enough, in this rare ABC interview with father and son, the sparks fly, and among the topic touched is the most popular story on Zero from yesterday, namely President Obama fabulous hypocrisy, who after bashing the debt ceiling as a senator 4 years ago, has bet the outcome of his entire economic policy on maxing out every single credit card available to him. Paul’s response: “…we have to face the fact that we are bankrupt and we can’t pay our bills.”  Not exactly the kind of thing one wants to hear if one’s name is Hu Jintao. That said you know the Paul-led interrogation of Bernanke will be something else, even if it is ultimately totally fruitless.

Hayden’s Note:

I am a huge Ron Paul supporter and have been so for many, many years.  His son Rand Paul, however, has some very troubling Neocon Warhawk issues that simply don’t jive with the senior Paul’s ideology or my own. ...

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George Soros: The United States Must Stop Resisting the Orderly Decline of the Dollar, the Coming Global Currency and the New World Order

Posted on Jan 03, 2011 in Political Issues

Source: The Economic Collapse

In the video you are about to see, George Soros talks about “the creation of a New World Order”, he discusses the need for a “managed decline” of the U.S. dollar and he talks at length of the global need for a true world currency. So just who is George Soros? Well, he is a billionaire “philanthropist” who came to be known as “the Man Who Broke the Bank of England” when he raked in a staggering one billion dollars during the 1992 “Black Wednesday” currency crisis. These days Soros is most famous for being perhaps the most “politically active” (at least openly) billionaire in the world. His Open Society Institute is in more than 60 countries and it spends approximately $600 million a year promoting the ideals that Soros wants promoted. Soros and his pet organizations have played a key role in quite a few “revolutions” around the globe over the last several decades, but these days the main goal of George Soros is to bring political change to the United States.

So exactly what is it that George Soros is trying to accomplish?...

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Shadowstats’ John Williams Expects Hyperinflation Within Months

Posted on Dec 17, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden

via SilverBear Cafe

There are those predicting inflation, those predicting deflation, those in between… and then there’s the ultra-hardcore hyperinflationists. It’s easy to see where John Williams, founder of, fits in. He’s forecasting a hyperinflationary future which he anticipates coming home to roost within months.

To say the least, it’s an aggressive prediction. Still, it’s compelling to get his forecast given his diligence in crunching US government statistics in the feds’ own original and now old-fashioned way, long before the numbers were quite so massaged – almost like a TSA pat down – prior to being released on an unsuspecting public.

In the clip below, Williams presents his perspective and offers some advice for hyperinflationary times. Here’s a highlight from the interview:

“In the US we don’t have a backup system. Zimbabwe had the worst hyperinflation anyone’s ever seen. But they survived, they had an ongoing economy. That was because of the black market in US dollars… we don’t have a black market in the US. There’s no backup to our system.”

For additional perspective you can also read a rebuttal to Williams’ argument....

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Warning: Muni Bond Chaos Imminent, Get into Tangibles

Posted on Dec 14, 2010 in Economic News

Source: Money and Markets

Whenever folks from Washington or Wall Street try to persuade you that the Great Debt Crisis is now “over,” I suggest you shake their hands politely, usher them to the door, and tell them to never come back.

They didn’t see the crisis coming. And they have no idea when or how it might end.

The reality: We now have not one — but FOUR — sweeping debt crises striking at the same time …

1. The mortgage debt crisis, said to be “mostly behind us,” has continued to deepen, fester, and spread — a shocking 13.78 percent of U.S. mortgage loans now delinquent or in foreclosure, despite trillions spent or lent by Washington on housing market bailouts. (For our early warnings, see Housing Bust Spreading published here in 2005 and for our latest commentary, see Mortgage Mayhem Spreading.)

2. The sovereign debt crisis, thought to be “history” after Europe bailed out Greece earlier this year, is now back with a vengeance, smashing the economies of Greece and Ireland … hammering the euro … spreading to Portugal and Spain … engulfing Belgium … and even threatening to bust apart the entire European Union, the world’s LARGEST economy....

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Derivatives: The Quadrillion Dollar Financial Casino Owned By The International Banks

Posted on Dec 13, 2010 in Economic News, Federal Reserve & Bankers

Source: BlackListed News

If you took an opinion poll and asked Americans what they considered the biggest threat to the world economy to be, how many of them do you think would give “derivatives” as an answer?  But the truth is that derivatives were at the heart of the financial crisis of 2007 and 2008, and whenever the next financial crisis happens derivatives will undoubtedly play a huge role once again.  So exactly what are “derivatives”?  Well, derivatives are basically financial instruments whose value depends upon or is derived from the price of something else.  A derivative has no underlying value of its own.  It is essentially a side bet.  Today, the world financial system has been turned into a giant casino where bets are made on just about anything you can possibly imagine, and the major Wall Street banks make a ton of money from it.  The system is largely unregulated (the new “Wall Street reform” law will only change this slightly) and it is totally dominated by the big international banks.

Nobody knows for certain how large the worldwide derivatives market is, but most estimates usually put the notional value of the worldwide derivatives market somewhere over a quadrillion dollars. ...

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US Military Prepares for Economic Collapse

Posted on Dec 10, 2010 in Police, Military, & War

Source: New American

Skeptics who continue to assert that the economic plight of the United States has been overstated need not look further than the Pentagon to find out just how wrong they are. CNBC has learned that the Pentagon is currently playing out “war games” pertinent to an American economic meltdown.

According to CNBC, “The Pentagon is planning for real economic threats to America.”

CNBC’s Business News analyst Eamon Javers explains:

Ever since the crash of 2008, the Defense Intelligence establishment has really been paying a lot of attention to global markets and how they could serve as a threat to U.S. National security interests. At one upcoming seminar that we’re going to see here next month, they’re going to be taking a look at a lot of the issues … [including] the use of sovereign wealth funds to manipulate markets, currencies; nation state economic collapse, sovereign default, nation state instability; U.S. Allies’ budgets, deficits, national security infrastructures.

Similarly, the Army has launched an operation called “Unified Quest 2011” in which it studies the “implications of ‘large scale economic breakdown’ inside the United States that would force the Army to keep ‘domestic order amid civil unrest.’” The Quest also trains the Army in how to “deal with fragmented global power and drastically lower budgets.”

In October, the United States Marine Corps visited J.P....

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