Thoughts on Markets

Friday, March 26, 2010

The U.S. is Bankrupt! The Enemy is Us!

Covered, below, are political items of more interest than precious metals. Be sure and check them out completely. Times are getting threateningly close to home in America.

Precious metals are under pressure. However, with virtually every downward move, buying picks up. Is the buying demand from foreign banks and individuals? It seems strong with every drop whether capped intentionally or market activity. Thus, the demand will continue to stop any significant drop in price.

Meanwhile the metals are locked in a trading range for the present. There are buying opportunities, but one must be very cautious. I sold a portion of BYD Company as my emails indicated, but the company has a great future, as I see it and am looking for opportunity to buy back some of the shares at a lower price -- hopefully soon.

From The "Yesterday the Treasury Department held an auction for $32 billion of seven year notes, and the turnout was disappointing. Earlier in the week the Treasury auctioned 5yr and 2yr notes, and the demand was equally tepid. The government has been auctioning a steady stream of bonds for months to fund its economic stimulus efforts, and the buyers seem to be starting to push away from the table. The bid to cover ratio, which is a measure of demand, came in at the lowest level this year and has been steadily dropping. The lower demand has started to push yields higher and prices lower. Chuck has warned readers that the Treasury market was the next bubble to pop, and the lack of demand certainly looks bad for future issues of US debt."

This is the big problem facing our bankrupt nation. We are dependent upon foreign and domestic buyers of our debt to finance the vast spending of our governments. Without buyers of our debt, we are left with only one choice since the White House and Congress has no intention of cutting spending. That is continue to crank dollars out of nothing with the printing presses and computer. That, folks, is true inflation which has been and will continue to have the effect of rising prices. With the true unemployment above 20%, regardless of the government manipulated statistics, we are facing stagflation. Stagflation is a period of rising prices and higher unemployment which means that we are moving to a lower standard of living. Those who face this fact and begin preparing for it by reducing spending and debt will survive while others will not be able to cope. Of course, there is the possibility of a war to hide the reality. They have done it before, and they can do it again. Pray that they do not.

From Don Stott on the cancer of socialization of America:

"The cancer has metastasized into the whole body of America. The few of us who have been warning of upcoming death, have not been listened to or heeded. The cancer has given us a virtually worthless currency, unpayable debts, upcoming runaway inflation, and a huge, worthless, underclass. We are now bogged down in two pointless, expensive wars, which seem to be un-winnable, and we are about to lose our credit rating. America needs huge infusions of cancer hiding loans to keep alive, and the purveyors of those loans have about decided we are a bad risk.

Now what? Reform the Republicans with Tea Party threats? Throw the bums out in November, and take over the Congress? Even if that happened, and I hope it does, the debts are unpayable, and welfare recipients cannot be denied, because if they were, America would be in ruins pretty quickly from the riots and arson...which may happen anyway. Best thing, to me, is to get out of big cities and protect yourself with historic, beautiful, real, money, not government issued scrip."

He is right on! We, as Americans, have become dependent upon a false god: The welfare state of America. Our nation is not the nation founded by our fore fathers. It has become a nation dependent upon the world for our high standard of living. This is collapsing from within. We have turned from the God of our fathers, who so abundantly presented us with providential blessing through which we gained our liberty, independence, and a Constitution which we have failed to protect and enforce. We are reaping what we have sowed, and until we turn back to the Sovereign God of all, we will stay under His judgment. King Jesus is the only answer.

From The

Social Security to See Payout Exceed Pay-In This Year

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

Read it HERE.

More fuel for the continuing bankruptcy of America.


Half of U.S. Home Loan Modifications Default Again

March 25 (Bloomberg) -- More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months. Read it HERE.


Department of Education arms with combat shotguns. Read it HERE.

Remember, a good government is dedicated to the protection of the life, liberty, and property of its citizenry.

A quote for today from ""If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one." --James Madison"

Miners from

Currencies from

Some current prices: BYDDF 9.90; FVITF 2.63 (Wow, is this a performer or what?); TBT 49.38; DOW up 80 to 10901; Gold up 14.20 to 1105.20; and Silver up 0.31 ro 16.89.

The political situation is worsening rapidly. Of course, it has been doing this for about 150 years, but has escalated in the last several decades. We are, as citizens, facing a situation our forefathers never thought would happen again. Of course, throughout history aggressive empires have always failed from inward deterioration and decay of moral standards as they turned from the true God to the false god of the state. Think about it!

Best to each, Doug


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