Analysis of Indian news dated 30-Jun-2012
June 30, 2012
What is wrong with global economy?
Answer) Too much debt.
Here, the blue line is “% change in GDP over last year”. The red line is “% change in TCMDO (Total credit market debt owed) / GDP”. So the gap between red line and blue line is creation of debt in excess of income on an annual basis. For many years, global debt has been growing faster than income. This is possible only because interest rates were artificially kept low.
The only solution is to reduce debt by increasing interest rates to near inflation rate, but USA, Europe and UK are increasing debt by keeping interest rates near zero. This will lead to hyper-inflation and destruction of currency. Only wealth in hard assets will survive this hyper-inflation.
Nationalized Bank NPAs (bad loans or non-performing assets) are rising; while private bank NPAs are falling. This means tax payer is losing wealth.
(NB – Nationalized banks, NPB – New private sector banks, OPB – Old private sector banks, NIM – interest margin)
Politicians and Bureaucrats are robbing state-run banks for their own benefit.
Obama is more concerned about “Who leaked government’s killer-drone strategy?” rather than drone attacks against Iran are illegal acts of war. The president is not allowed to performed war acts, without the approval of Congress. Obama like Bush disrespects the USA constitution.
In Syria, rebel gunmen stormed a pro-government TV station, killing 3 employees, after Assad announced that the country was at war with Western interests, not merely fighting scattered rebel forces. Western nations don’t like to hear truth from middle-east leaders.
Obama-care was marketed by Obama as “Not a tax”. The supreme court ratifies it because “It is a tax”. So what is it? Well, heads Obama wins, tails citizens lose. Take it either way.
Gerald Celente issues a revolutionary call for USA Nov Presidential elections, “Stay Home, Don’t Vote.” People have been conned into believing that if you don’t vote you’ve lost the right to complain. That’s political baloney.
The true case is exactly the opposite. This is a two-headed, one party system. Republican or Democrat, considering their track records, it’s clear nothing can be expected from either Presidential candidate other than the perpetuation of the destructive and criminal policies that have brought America to its current state of perpetual crisis and socioeconomic decline. Ditto for Congress.
What self-respecting person would cast a vote for a lesser of two evils? Not only is it immoral and undignified, it’s destructive. Lesser or greater, evil is evil. By supporting one evil or the other, the voter becomes an accessory to the crime. Only a true intellectual/moral revolution can restore dignity, trust, decency and compassion.
Anything else is just more of the same. Stay Home, Don’t Vote! If less than 40 percent of the nation’s eligible voters go to the polls, the election should be considered invalid. It would prove, in stark terms, that ‘none of the above’ was more popular than either Obama or Romney. And the people will be in a position to demand a fresh slate of candidates that more closely represent their needs and interests.
We can change course, restore our country and regain our independence. United, the American people have the power to prevail and create ‘a more perfect Union.’
Euro-zone agrees to an EU bailout of $126 billion. Also agreed upon is the creation of a new, centralized financial authority that will control the monetary policy of EU countries. The bailout money will be created out of nothing by the EU central bank and, therefore, will come from taxpayers in the form of inflation in countries that use the Euro. It’s the same old trick: Turn every crisis into an opportunity to expand government and to plunder the common people.
Buy physical gold and silver to protect yourself. If you cannot touch it, you don’t own it. Exit all paper investments including ETFs, stocks, PF, PPF, NSC, etc.
goldsilvereconomy 