Jim,
Unique and Dangerous Nature of the Current Crisis
By CIGA Eric 12/03/09
The Treasury recently released the Federal Debt Held by Foreign & International Investors (FDHBFIN). The magnitude of this number is unbelievable. When compared against GDP, it reveals the unique and dangerous nature of the current crisis. FDHBFIN is nearly 25% nominal GDP. Compare this percentage to key dates in the 1970s, 1990′s and early 2000’s. Notice the acceleration and the increase in the size of the problem since the 70’s. If the market were to balance the books today, the price of gold would soar well beyond consensus expectations. The public remains largely unaware, but rest assured the markets "see" what is happening. As the number of strange occurrences increase in frequency, it raises only one question – How long can this be ignored?
Source: http://research.stlouisfed.org/fred2/series/FDHBFIN
Jim,
Are those tools found at Sears? Who’s he kidding with this statement?
Bernanke claims tools, will to reel in stimulus
Bernanke pledges tough financial oversight, says he has tools and will to wind down stimulus
By Jeannine Aversa, AP Economics Writer
On 10:42 am EST, Thursday December 3, 2009
WASHINGTON (AP) — Making a case for a second term as head of the Federal Reserve, Ben Bernanke said Thursday that he has the tools and the political backbone necessary to reel in massive economic support once the recovery is firmly rooted.
While widely crediting with helping keep the Great Recession from becoming a second Great Depression, Bernanke faces enormous anger from both Congress and the public for bailing out Wall Street, while ordinary Americans are struggling under the crush of high unemployment, stagnant incomes and rising foreclosures.
If confirmed to a second, four-year term, Bernanke vowed to work with Congress to overhaul the nation’s financial regulatory structure and to bring about stronger and more effective supervision, he told the Senate Banking Committee.
Dear Eric,
There is no PRACTICAL tool, way, or means to drain the trillions of dollar of liquidity injected into the world monetary system by the Fed and Treasury as well as similar bodies in other Western economies.
He is kidding much of the public that wants badly to be kidded.
The dopey traders on the floor demonstrated their desire to be fooled in the direction of their long equity positions according to the NYSE afternoon report.
“According to the Labor Department, Initial Jobless Claims fell by 5,000 to 457,000 in the week ended November 28th. This represents the lowest figure for claims since September 6, 2008, and it is the second consecutive week that claims have remained below the 500,000 mark… (traders cheered this news)”
People can be fooled who wish to be fooled.
Regards,
Jim
