Thursday, 19 February 2009

US markets heading down, down, down while debt levels increase

So here's a graph of the US stock market priced in gold since 1886.

People like Peter Schiff and Marc Faber predict that the market will drop again to be worth one ounce of gold.

It'd take a brave man to bet against that prediction.

Here's another scary chart showing US debt vs income levels since 1970.

Can someone please explain to me how the 'stimulus' plan addresses the underlying structural issues in the US economy?

Without fixing these issues how will any country be it the US, Australia or any in Europe get their economies back on track?

I suspect that once things have bottomed out, which will not happen for 12-18 months, many economies will resemble Japan's with slow, slow growth.

And if you seppos think that your stimulus package stinks then you might wonder why the Australian government, overseer of what has been described over recent years as the soundest economy in the world, is spending 6.5% of GDP on its stimulus package vs the US figure of 5.8%...

(Nothing Follows)


Kevo said...


Here is a link to one of the writers at the Lew Rockwell site.

The headline reads

"The Looming Collapse of European Banking"

'European Commission officials have estimated that impaired assets may amount to 44pc of EU bank balance sheets. The Commission estimates that so-called financial instruments in the trading book total £12.3 trillion (13.7 trillion euros), equivalent to about 33pc of EU bank balance sheets. '

I presume "so-called financial instruments" are largely OTC derivatives - with a view that these are about to go toxic if counterparty defaults trigger a cascade of worthless assets - I guess.

The writer hopes the source report is incorrect - I went home last night offering a silent prayer that it was incorrect too.

Mind you - it might explain why the former Japanese finance minister got absolutely spacko at the recent G-7 meeting......he knows something we don't ?

Jack Lacton said...


Thanks for the link.

If Gary North is even a little bit correct then things are going to turn turtle all over the world let alone if he's fully right.

Anonymous said...

Each individual alters as a result of model of that rectangular shape starting from tall in height... to help you great... to help you very nearly sq. fake hublot The value tag words alter frequently while in the Summer sub-styles at the same time. fake hublot Tankissime: Even while unmistakably relating to Tank's in general pattern and even figure, Tankissime is an important group their own individual. fake rolex sale You'll find it a powerful really chic sit back and watch aquiring a lustrous magical and golden wrist band that could be certainly more desirable labelled as an important band. hublot replica It beginner guitar rockband is commonly provided through precious stones so that it is probably Cartier's alot more wonderful and even high-quality wrist watches. rolex replica sale That Tankissime in general is known for a 5-figure cost you. Pasha: Pasha is without a doubt probably Cartier's son creases, though contains a good amount of versions (and even bills) readily allowed to fill today's is more enjoyable at the same time. It was subsequently traditionally built to be a cooling off sit back and watch which consists of lustrous, spherical model that could be inherently heavy duty and even water-resistant. Different from various versions that Pasha facial skin includes details, not even roman numbers.