Courtesy of Greg Hunter’s USAWatchdog.com
Some people see the Internet as an electronic world of wires and computers run at speeds measured in nanoseconds. I tend to see the Internet as an electronic extension of human biology. Sample enough of the Internet in the right places and you can get a snapshot of what people are generally feeling. One of my own readers, Alyce, commented recently, “It’s easy for people to become lulled into a false sense of security. The term normalcy bias keeps popping up in articles I read lately. It is when people interpret warnings in the most optimistic way possible. Happens all the time…human nature to believe that since a disaster has never occurred in one’s lifetime, that it just never will. Trust your instincts.” Bravo Alyce! What are some of the headlines flashing warning signs? Let’s start with one concerning the ongoing enormous problems with the banks. The Phoenix Business Journal reports “Arizona, Nevada Sue Bank of America over home loans, modifications.” The story goes on to say, “Attorney General Catherine Cortez Masto filed in the Eighth Judicial District of Nevada . . . The Nevada complaint alleges the bank told consumers they would not be foreclosed on while requests for loan modifications were under way, not acting on the modifications within a specific time, making false promises to consumers and potentially selling their homes while they were waiting for decisions. “We are holding Bank of America accountable for misleading and deceiving consumers,” said Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.” (Click here to read the complete story.) There have been dozens of lawsuits against banks alleging fraud and wrongdoing. This marks a new twist in that, now, lawsuits are coming from state AG’s.
The FDIC shut down another 6 banks last week. 157 small banks have gone under this year alone. Instead of sounding the alarm, this news is met with a yawn by the mainstream media. This is a record for the new millennium and proof positive things are NOT getting better. On the big bank front, many say they are hiding the fact they are insolvent! The Market-ticker.org headline says it all “System Was Insolvent In 2008 (And Still Is)”. (Click here to read the complete story.) We are clearly facing a systemic solvency problem, but few people realize just how bad the economy really is.
Economist John Williams has been warning of an economic collapse for a few years. In his latest Shadowstats.com report, he says, “. . . the U.S. remains the proverbial elephant in the bathtub in terms of pending effective sovereign bankruptcies.” Williams thinks it will all hit the fan within 6 months and is predicting a dollar catastrophe. Europe is a sideshow to the coming main event. Williams says, “The various European crises remain an intermittent foil for the U.S. dollar, pulling market attention away from the unfolding solvency crisis in the United States and a likely move to massive selling against the U.S. currency. Accordingly, high risk of the early stages of a hyperinflation (see Hyperinflation Special Report) beginning to unfold by mid-2011 continues.”