Meredith Whitney was featured on the State Fiscal train wreck we all knew was coming. Another $500B to $1T series of bailout packages are almost guaranteed in 2011.
Why? Even Christie just admitted the deep cuts he's initiated won't come close to closing the pension funding gap. The Illinois Comptroller admitted they're 'deadbeats' and owe everybody that does business with the state for months.
Slowly but surely, the impossible math of the situation is creeping into public view. Unfortunately a few years too late to do anything about it.
$50 silver is a shoe in prediction for 2011.
Interisting interview on inflation...
where do you think it might go...??
Yea, I saw the story on 60 minutes. If people don't understand that we are going to enter a big inflationary spiral, they are just fooling themselves. The extension of the tax rates is inflationary alone. Now we have a cut in the medicare tax along with a lesser payroll tax. The govt. is screaming at us that they are in trouble . Folks, if this doesn't stimulate the economy, they will just print beyond comprehension until we inflate and monetize the debt. Actually, the big problem is coming soon. The Federal govt will tell the states that there is no more money. The states will be forced to cut programs and projects which will result in more unemployment and less sevices. You will see a cut in teachers, state workers and a rise of fees on drivers license and plates, homeowners insurance, maybe a half point or more in state sales tax. Those states that don't tax food will be forced to include taxes on those items. The budget deficit will be running at 1.3 to 1.7 trillion dollars a year for at least the next 4 years. We are now having trouble funding our auctions and rates will rise. Here is the problem. We won't be able to rally the dollar as rates rise because of our high unemployment. We will be left with higher interest rates, a falling dollar and increasing deficits due to the interest payments on the national debt. Remember, each one percentage rise in rates mean another 150 billion dollars in interest payments. You can all see the dangers we face as the national debt goes to 20 trillion dollars in the next 5 years. So, if you haven't bought into the precious metals argument about future inflation, you better start thinking. We are just at the early stages of this bull run. Precious metal bull runs end in a parabolic rise and we haven't even started that phase. Buy all dips and you will be rewarded. In 5 years we will look at the prices of today as the biggest wealth maker in our lifetime
You nailed it bud. There will be an attempt at the Fed buying state munis. There have already been whispers. The states bailout will be stimulus 2.0 no doubt about it. I'm shocked this was even allowed to be on 60 Minutes to be honest with you. I'm not sure of the time frame of when all this will go down but there is not doubt that it is coming.
My family thinks I am nuts when I talk about this stuff. Maybe now that it is on 60 Minutes they will listen.
Thanks to who posted the link and the Rickards one too!
the problem is that if hyperinflation does hit everything will be a train wreck. Even those who smugly think that gold and silver will save them from the travails of hyperinflation. Hyperinflation will hurt everyone. Including those loaded with gold and silver....
I believe it will not be a wealth maker, "the precious metals", but a wealth holder...I am half a millionair, but how much is that really worth in comparison, to say, the 60's...I would guess somewhere in the 10,000 range....
thank you for listening to my thoughts...have fun....sno
You may as well throw in California's fiscal crisis along with that of Illinois. Actually, there are probably about 20 other states that are now in serious trouble. And how many cities and towns could we add to the list? Many municiple bonds are now worth a fraction of their face value. And how many state and municiple pension funds have been depleted and will soon be unable to meet their obligations? We can rest assured that silver will not only hold it's value, but will continue to grow in value as time passes. SS