Shylmysten

2 days ago, there was a very breif interuption in the regular news programming for an alert. The alert was that 27 states were being DENIED new loans by the big banks the Taxpayers bailed out. In short, the states will go bankrupt within the next 3 months, they will simply run out of money for their programs, like medicare, medicaid, police, etc. The only way the states would be able to get more money was if the FED printed even more money for an even bigger "Stimulus/bailout" than the first one. Here is what my Investment Advisors said about Muni Bonds: All across the country, state and local governments have run up the same kind of enormous debts as the feds. According to a study from the Pew Center on the States, state and local governments will need at least another $1 trillion to meet their obligations over the next few years. Total outstanding state and local debt is currently $3 trillion. It's unlikely the states can borrow the money they need or raise it in new taxes. Widespread defaults are imminent. Why? The states can't print money. Their financial problems can't be "kicked down the street" or monetized. These debts will explode in a crisis this year. Yes, we know... Everything that can be done to prevent an outright default will be done. Numbers will be fudged. Insurance companies will begin to pay debt service rather than allow a muni bond to actually default. But eventually... some politician somewhere will say, "We're not going to pay." And they will default. What happens next? No one knows. If the default stands, the entire muni bond market will shut down. Investors have long assumed muni bonds would never default. They have an implied triple-A rating based on the assumption that state governments would always bail out any issuer who went into default. They would do so to avoid a statewide downgrade that would make borrowing more expensive for all of the municipalities in the state. If there's a big default (and we believe there will be dozens in 2011), states like California, New Jersey, Illinois, and New York may simply be unable to bailout the issue because of their own budget problems. Default may become the logical political choice.

We put together a few of the key facts. We are interested in hearing from you if you have any contravening information. We always want to understand the other side of the argument... but so far, we haven't learned anything that sways our opinion. We would urge you to share these facts with anyone you care about. Here are the top seven factors we believe MUST lead to the end of the global U.S. dollar standard. The price of gold has gone up for 10 years in a row. We can't think of another market that's ever risen for 10 consecutive years. This is a historical anomaly, and it means something has gone badly wrong with the world's reserve currency (the U.S. dollar). Markets, if left to find their own equilibrium, will naturally fluctuate. Gold isn't fluctuating. Its steady move up proves something strange is happening to our money. Our government's deficits are out of control. The government's annual deficits now routinely surpass $1 trillion. The first $1 trillion deficit came in 2008 – and the government explained it away as the consequence of the financial crisis. But we racked up another $1 trillion deficit in 2009 and yet another in 2010. We'll have another in 2011 and so on. Our national debt has doubled since 2005. We've borrowed more money in the last five years than we had in the entire history of our government until then. This isn't sustainable. The government cannot increase tax revenues enough to cover our spending or repay our debts – ever. Our annual deficits have become completely unlinked to taxes. Total federal income taxes and corporate taxes generate $1.1 trillion a year in revenue, and we still ran a $1.3 trillion federal deficit last year. So even if we increased tax revenues by 100%, we would still have fallen $200 million short. This is totally unsustainable. Special-interest groups – particularly government unions – are looting our Treasury. Self-serving special interest groups have completely hijacked government spending. We now spend $200 billion a year on federal pensions. We're spending another $450 billion on welfare. This spending, combined with our defense spending ($700 billion), exceeds total federal tax revenue and leaves nothing to pay the $200 billion in interest on our debt, nothing to pay for actual government services (like roads), and nothing to pay towards the inevitable Social Security/Medicare shortfall. Remember… most voters do not pay taxes. It's politically impossible to reform this interest group-based spending. These people are robbing the Treasury. They will cause our currency and eventually our government itself to collapse. We're printing money just like the banana republics we used to mock. To support the government's runaway spending, the Federal Reserve is now continuously buying government debt. This process was commonly called "monetizing the debt" or, more simply, "printing money." The Fed creates new money to buy government bonds. This kind of Ponzi financing destroyed every previous experiment with paper money. If printing money were truly good for an economy, Zimbabwe would be the world's wealthiest country. Perhaps even more worrisome than the practice itself is the leadership of the Fed, which has alternately defended this practice and then denied using it. If the Fed continues this practice, it will eventually cause a global run on the dollar that will destroy the value of our currency overnight. We can't repay our debts. Total debt outstanding in the U.S. currently exceeds $55 trillion. That's $681,165 in debt per U.S. family. There is simply no way to repay (or even maintain) debt of this magnitude using the income of the average American family, which is slightly less than $50,000 per family. Interest alone on these debts (based on a 5% rate) would total $34,000 per family every year. Total debt in the U.S. economy is unsustainable and can't be financed without printing vast new sums of money. Shockingly, new debt issuance in the U.S. is soaring, with the lowest-quality debtors borrowing record amounts. Despite all the evidence that the U.S. economy carries far too much debt, both public and private debt issuance soared to new record levels in 2010. Overall, more than $3 trillion in new corporate debt was issued last year – the second record year in a row. And junk-bond issuance set a new, vastly higher record. In 2010, 509 speculative-grade corporate borrowers sold $287 billion worth of new debt. That compares to the previous record (2009) of $167 billion. Our economy has become so warped by its debt load, it cannot function without ever-larger amounts of debt. Anyone looking at these numbers must realize this is not safe and will not last long. Why No One Else Is Issuing These Warnings You may read these facts and ask, "Where are the ratings agencies? Why does a small newsletter based in Baltimore, Maryland seem to have the jump on everyone in Washington and most of the people in New York? Why aren't these facts in the newspaper? On the news at night? In magazines?" The answer: Government spending now makes up more than 40% of our economy. No big business can afford to offend its best customer. And most also depend on the government for protection from competition, in the form of licenses or permits. Take the ratings agencies. The SEC licenses them, and their business model depends on SEC regulations that require all new debt issues to be rated. The ratings agencies can't say anything bad about the government's finances because a single act of Congress could put them out of business immediately. Listen to what Standard & Poor's said recently about the federal government's deficits and the risk the U.S. faces of losing its world reserve currency status: The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar... But that may change. We can't rule out changing the outlook... No triple-A rating is forever. It's clearly a warning. But it's not specific. And it was issued from an S&P employee in France. Believe me, all of the debt analysts know how much trouble America is really in... but they're not going to say anything. It's a game of "see no evil; hear no evil; speak no evil." Why? What's the point of everyone keeping his mouth shut? The government believes the average American won't understand what's happening as the dollar collapses. When prices begin to explode higher (as they are already doing) the government will pin the blame on commodity producers, like oil companies or the big food conglomerates. No one will notice or care that prices for these commodities are set on global markets and none of these companies has anything close to monopoly pricing power. But the crowd will not care. The crowd will believe anything on the nightly news. NBC, CBS, ABC, and Fox will all go along with the government's line – their broadcast licenses depend on it. And so, the game will continue. The middle class will be wiped out. The poor will get vastly poorer. And the rich – the folks who own plenty of assets to protect themselves from inflation – will get vastly richer. What could go wrong? Well, what about our creditors? Sooner or later our creditors will notice what's really happening. They won't care what Brian Williams or Katie Couric says. And eventually one of our major creditors – China or Japan – will demand some kind of compensation for the decline in the value of the dollar. Or else. If you're not out of the dollar by then, it will be difficult for you to maintain your wealth. The dollar will collapse almost overnight. This will happen. Today, no one believes it could. But our government and private debtors have no other way out. There's simply far too much debt to be financed. It must be inflated away. We know most of you simply can't believe this forecast. You can't imagine America could suffer the fate of a banana republic. You will look at our numbers. Then look again. You'll re-read our list four or five times. You might even double-check our numbers. (They're right.) But still... you'll tell yourself, something will change. In a few years, these numbers won't look so bad. Or perhaps you'll simply think, "These numbers are so bad and they foretell of such bad times that I simply don't want to think about them." People often struggle to imagine their lives changing in a profound way. So as a prelude to what's going to happen to the country as a whole... to help you prepare emotionally for what's going to happen... we give you the municipal financial crisis. And it goes on about 27 states going bankrupt in 2011 and Municipal bondholders being basically screwed and left with worthless paper.

It was the announcement today that 27 of the 50 U.S. States are nearly out of money to run their government programs with ( i.e. dept. of education, prisons, Medicare) and the refusal of the large banks we all bailed out to give them loans. 27 states have been denied any further credit. Moody's again reiterated its intentions to remove the U.S.'s triple A credit rating. I expect a big selloff on Tuesday when Asian markets open. When the states are broke and the fed is talking about printing more money to bail them out because the big banks have denied them any further credit, we are looking at America's Weimar moment. If you don't know what the Weimar moment was...do a search for it on Google, then PRAY TO GOD THIS DOES NOT HAPPEN MONDAY. It was the announcement today that 27 of the 50 U.S. States are nearly out of money to run their government programs with ( i.e. dept. of education, prisons, Medicare) and the refusal of the large banks we all bailed out to give them loans. 27 states have been denied any further credit. Moody's again reiterated its intentions to remove the U.S.'s triple A credit rating. I expect a big selloff on Tuesday when Asian markets open. When the states are broke and the fed is talking about printing more money to bail them out because the big banks have denied them any further credit, we are looking at America's Weimar moment. If you don't know what the Weimar moment was...do a search for it on Google, then PRAY TO GOD THIS DOES NOT HAPPEN MONDAY. It was the announcement today that 27 of the 50 U.S. States are nearly out of money to run their government programs with ( i.e. dept. of education, prisons, Medicare) and the refusal of the large banks we all bailed out to give them loans. 27 states have been denied any further credit. Moody's again reiterated its intentions to remove the U.S.'s triple A credit rating. I expect a big selloff on Tuesday when Asian markets open. When the states are broke and the fed is talking about printing more money to bail them out because the big banks have denied them any further credit, we are looking at America's Weimar moment. If you don't know what the Weimar moment was...do a search for it on Google, then PRAY TO GOD THIS DOES NOT HAPPEN MONDAY. It was the announcement today that 27 of the 50 U.S. States are nearly out of money to run their government programs with ( i.e. dept. of education, prisons, Medicare) and the refusal of the large banks we all bailed out to give them loans. 27 states have been denied any further credit. Moody's again reiterated its intentions to remove the U.S.'s triple A credit rating. I expect a big selloff on Tuesday when Asian markets open. When the states are broke and the fed is talking about printing more money to bail them out because the big banks have denied them any further credit, we are looking at America's Weimar moment. If you don't know what the Weimar moment was...do a search for it on Google, then PRAY TO GOD THIS DOES NOT HAPPEN MONDAY.

Thats what I've been saying all along!! If they could they would have forced China to do it a long time ago as they have been undervalueing their currency to gain an unfair trade advantage and have been under international pressure, especially from the US to do so. They just recently gave it a bump, but again, it was on their own terms.

Thanks Hammy, but I think I'm getting all the negatives because bumper (Staff) added the link into the original post. I am at a -9 now. Ah well, such is the price of scrutiny at DV...

Rep. Clyburn: Palin ‘Attractive’ but ‘Intellectually’ Incapable of Understanding Arizona Shootings http://blip.tv/play/hJNRgpupTQI%2Em4v Rhode Island Governor Bars State Employees From Talk Radio http://clipsyndicate.com/video/playlist/8178/2102410?wpid=9528 ‘You’re Simpletons’: PA Gov. Rendell ‘Loses His Cool’ During ‘60 Minutes’ Interview http://clipsyndicate.com/video/playlist/8178/2099713?wpid=9528 And if we have memory like swiss cheese, well let me fill in the holes: The Hypocracy in the rhetoric by the left The progressive “climate of hate:” An illustrated primer, 2000-2010 http://michellemalkin.com/2011/01/10/the-progressive-climate-of-hate-an-illustrated-primer-2000-2010/

It has nothing to do with money or hate. It has everything to do with taking away the voice of opposition. If it had to do with hate then there are some democrats that really should seriously be questioned as to exactly what their intentions are: here Here Let me try to summarize the last five days: Day 1: Crazy person murders people in Tucson. Day 1 + 1 minute: Some in the media begin to blame Sarah Palin and demand that she responds. Day 2: It begins to look like the shooter had nothing to do with Palin. Media still demands Palin respond. Day 3: Shooter looking to be more insane than ideological. Media still can’t believe that Palin hasn’t responded to something she has nothing to do with. Day 4: Shooter could care less about politics. Where is Palin? Why won’t she respond? Day 5: Palin responds via video. Story on NBC Nightly News trots out her “target map” and ties it to Gifford, then shifts to focus on two words of her eight minute video by interviewing people who say she’s anti-Semitic and wondering what this will do for her chances in 2012. It‘s really hard to believe that anyone could take the mainstream media seriously anymore.

Thank you!!!

Wow, there are some real hardcore a$$holes here...aren't there? I get -5 for asking for a link the same as the guy below me did...hmmm, kinda makes you think some people hold childish grudges and hide in the shadow taking pot-shots at those they have some beef with...how imature, how cowardly, how liberal!!

Sorry to rain on your parade, but the news speaks for itself on the subject of "the Campaign to kill free speach": Doing a simple google search on the topics of will show you the err of your logic: fcc talk radio About 458,000 results fcc net neutrality About 4,340,000 results I'm sorry, but it's apparent that someone on Captiol Hill doesn't like the free exchange of ideas...especially ideas of opposition...

That's really good, but I got a better one - and it's kind of prophetic....

Beck issued a formal appology on his show for calling Obama a racist. He also said he was wrong.

First of all, this has NOTHING to do with Glenn Beck and everything to do with what America IS. I took an oath to protect and defend the Constitiution when I entered into the military and I took my oath seriously and sincerely. Our oaths are all we are worth... Secondly, whats the difference between rumors and lies? Every rumor has aspects of both truth and lies, its all in the perception of the information. And last but not least...to all you who gave me negatives for defending someones right to Free Speach, you know where you can stick it...right?!!! Or are we not adult enough to figure that out and I need to give you a crip sheet to figure it out, just as the person who began this post tried to give us a crip sheet on who and what to believe and who and what not to... The arrogance of liberals is F#@%ing astounding!!!

No I'm defending their constitutional rights to FREE SPEACH. There's a HUGE difference. It's plain and simple what I am defending. No need to misconstrue my intentions, or take my words out of context to demonize my values.

This newbie must be a liberal because he thinks we're all too damn dumb to figure this out for ourselves. Sorry, we're all adults here, and everyone can make up their own minds on who and what they want to believe, there is no need for censorship - this IS America after all, and regardless of whether you agree, regardless of whether the speach is hateful, regardless of whether the speach is all lies, - and I may vehemently disagree with it - it is a right protected under the first amendment of the constitution and I will fight to the death to protect it. You have the right to voice your opposition - and for know - that right is also protected under the constitution, but it seems there are members of congress trying to silence any voice of opposition as well.

I do, unfortunately, anyone who mentions God, is also on my son's hitlist. He's not an athiest, but he tries to intellectuallize religion and spirituality. He thinks that the bible is a story book, but I've shown him the archeological evidence. Doesn't matter...God his patient, and he will wait for my son to come to him...I just hope its sooner than later

link please!!!

This is Dead on!! My son is a sophmore in HIGH SCHOOL, with a 4.0 GPA and because he was taught by his philosophy teacher that Marxism is so "Ideal" for any government, he now believe that the constitutional ideas presented by our founders are "outdated" and the document itself is nothing more than an "antiquated relic" of our history. The funny thing is, when I asked my son, if he knew how many people Joseph Stalin, and Mussolini slaughtered, he didn't have a clue. And when Marxism is taught to our children in this light, it makes it MUCH MORE appealing to them. History is being revised, and taught to our children like a propoganda arm of the Government. The Dept. of Education needs to be defunded, dismantled and thrown in the dustbowl of history. Since its inception, our kids have consistently slipped in their grades, test scores, and what was once thought to be "common knowledge". I have tried so many times to help my son understand exactly how OUR Constitution changed the entire world. It was a 5000 year leap in society and human rights. It was what INNOVATED the world, thus changing it forever. I truly believe we are headed for a meltdown in this country. The progressives want a full on, out in the street revolution, to bring the government down on top of the people. Every crisis has been exploited to bring more government control and regulations, that bleed us of our God given rights, our freedoms, and our liberties.

Sorry, but someone with this status and elevation in any Government would not be so UTTERLY Ignorant to risk EVERYTHING by LEAKING information that comes out of State Dept. Meeting to make us little peons feel better about our investment. My BS METER is BURIED right now. Once again, the IMF CANNOT force ANY country to revalue their currency. It is an internal policy and procedure. If this was true, they would have forced CHINA to revalue their currency as the world knows they've been grossly UNDERVALUEING their currency to gain UNFAIR Trade advantages. Once again my BS METER is BURIED.

First of all, you are not the one in violation, the Seller is the one in trouble. They could have their license pulled.

How could anyone in Iraq CONFIRM banks in KUWAIT buying dinars at .35? What banks? Where's the list of these banks from the boots on the ground that confirmed this? We all know about so called "reliable" sources. In the end, most of them are about as reliable as the weather. I have read several articles that could lead someone to believe that .86 is exactly what the exchange rate is to be set at, AFTER the removal of 000's. But this is just the "speculator" in me and an opinion, and we all know what opinions are like...

I know you are supposed to have a link, but they just broke in on Fox News and said that the Government of Lebenon has Collapsed. http://www.foxnews.com/world/2011/01/11/lebanese-leader-says-deal-lebanon/ There is a big red banner on fox news confirming it Breaking News: Lebanon's Government Collapses After Resignation of Hezbollah Bloc

Anyone have a link to what SmokinAce is talking about? NVM I found it Damn I was all excited too!!

I just checked this Jordan Islamic Bank, it is listing the IQD:US Rate as 1 IQD = $3.2258 US 1 USD = 0.3100 IQD http://www.jordanislamicbank.com/en/ Look at the currency converter to the right of the page to see this for yourself.

This also concerns me very much...if supply was truly short, their buyback price would also rise accordingly, just like the price to sell gold or silver has kept up with the buyback rate. This seems to me more like someone making a profit from rumor and high market speculation because his buyback has barely moved which means he understands there is a line where he will no longer make profit...or an absolute exchange rate that he cannot exceed because he would then be buying back Dinars and putting his business into a deficit. Looks like greed feeding on greed.