Tuesday, February 24, 2009

Not excellent news, but an excellent interview (very insightful/'inciteful') ...

'There will be blood'
Harvard economic historian Niall Ferguson predicts prolonged financial hardship, even civil war, before the ‘Great Recession' ends






Thanks to Legal Sodium for his link in the comments of my last post. Actually, "no thanks" to Legal Sodium for that link because it's nothing but bad news - lol. Truth of the matter is: America and countries doing business with America are going broke in this recession/depression. People in the US Administration know how dire the situation is, but obviously can't level with voters on how bad because that would lead to a run on already crippled banks.

Let me put it this way, I put a little bit of money into a reverse ETF which basically makes money when the stock market slides. Right now, that's the only investment I own that is generating cash almost as fast as the US Treasury is printing it.

However, if you've been reading this blog long enough, hopefully y'all know what my best investment is, right? That investment isn't on this earth because this earth is crumbling away.

Here's the disconcerting link. Again, 'no thanks' to Legal Sodium :)

China's calling her loans

The comments at the above link have since been deleted, but thanks to LS, here they are:

and now for something potentially really scary:

http://market-ticker.denninger.net/archives/824-AIG-Inquiring-Minds-Want-To-Know.html

from the comments section:

1)So let me see if I have this right.

In September the Chinese threatened economic warfare on the US if we didn't make them whole on some of their US investments.

Bernake and Paulson met with top leaders in Congress to tell them that they had until Monday to give them the money to be funneled to the Chinese or else the Chinese would trigger the collapse of our economy.

So the TARP was a way to get this money to the Chinese without anyone really knowing about it. That's why we can't be told where exactly all the money has gone.
2)You know, the MSM has successfully avoided discovering where the TARP money went. Now that AIG has lost $60 billion in one quarter (I wonder how long that record will last? Dozens of years, or closer to dozens of days?), and AIG got so much money, it almost can't be avoided. Either it is found out and the phone lines to Congress melt, with accompanying street protests, or it remains covered up and confidence (what little is left) evaporates. We know what happens then. Hope you're all short.

This is surely a major league, class-of-its-own, multi-megaton-sized WTF event. If it turns out that we caved to Chinese blackmail, the markets will crash and historians might date the 2nd American Revolution to today.



Flashback: The day the economy almost died...and nobody bothered to tell you


During the last election campaign, it was said...

"It will not be six months before the world tests Barack Obama... [We're] gonna have an international crisis, a generated crisis, to test the mettle of this guy..."

-Joseph Biden, US Vice President

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