April 17, 2009

American Bankruptcy is approaching!

It is quite clear from recent authoritative sources that what the Czech president described as a "way to hell" is months away.
Before leaving his office he decided to speak out his mind on Obama's bail out plan which is increasing debts to a level never reached before, he described his bail out plan as way to hell, which could fundamentally cause again the same bubble that was at the origin of this mess.
The scary part though are the recent declarations of China, which is very worried for their massive investments in USA, of course since Fed started to print money like there is no tomorrow everyone should be worried of the sustainability of this plan.
The best description of the hell that will fall on American heads in some months and subsequently on the entire world cannot be better resumed than by Ambrose Evans:


One thing is clear: Beijing suspects that the US Federal Reserve is engineering a covert default on America's debt by printing money. Premier Wen Jiabao issued a blunt warning last month that China was tiring of US bonds. "We have lent a huge amount of money to the US, so of course we are concerned about the safety of our assets," he said.
ref: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/5160120/A-Copper-Standard-for-the-worlds-currency-system.html



Despite the reassurances of Obama and his Wall St. friends, the economy is rotting away day by day and reckon time is approaching!
No doubt massive default will occur, we still have to see how will it be managed and who will pay the stepeest price. FDR described the Great Depression as a great redistribution of wealth from the poor to the rich, I doubt this time it will be different, the robber barons of capitalism and their political cronies and puppets will suck away any wealth left. Destitution, violence and chaos will reach incredible levels.
Be ready for this summer, August and September are going to be extremely HOT!!
Post a Comment