Greece was unable to form a coalition which has actually prompted an election in June. Problems in Athens has sent shock waves through the 17-nation Euro zone. The Euro has slipped below $1.28 against the dollar showing some serious signs of weakness in the union and artificial demand for the U.S. dollar.
Obama’s Budget Gets Shut Down By Senate
The Obama budget has been completely rejected by the Senate. 99 votes were against the budget with ABSOLUTELY 0 for… The Democratic-controlled Senate has not produced a budget since April 2009. Since then, the nation has spent $10.6 trillion and added $4.5 trillion in new gross debt. So essentially, there is major gridlock in the Senate and passing something that will be anything close to a drastic cut to our spending will be highly unlikely.
With issues like the government wanting to pass budgets that oppress the entrepreneurs and successful individuals in America, it’s no wonder why Chris Martenson believes that we are headed for another 2008 moment in our not too distant future. Thirty of the most systemic important financial institutions are seeing risks climbing to 3-month highs. His analysis is comparing the troubles that were in the banking industries in 2008 to the current euro zone crisis, which can act similarly in spurring another big hit in the global economy. The prediction that he makes and that we are noting is that he believes Greece will be off and out of the euro by 2013. It’s definitely hard to make an exact prediction like that, but practically it makes sense for a country like Germany to unload the burden of the dead weight in the union that they inevitably are lugging around. To actually think that having 17 individual nations that are independent from one another attempt to come together as a pool with each one having a different amount of productivity and performance, is literally madness.
Inflation In India
India is seeing some pretty steep price inflation in their country at the moment. They were expecting an already relatively high rate of 6.7%, but actually reported an official 7.2%. When seeing the kind of main street occurrences that are actually going on in other countries, it makes sense why they are the ones actually buying gold and storing it as money while America continues to call it a speculative commodity. Americans have grown accustomed to an inflated illusive lifestyle that has distorted and jaded the sensitivity for life the way the rest of the world experiences it.
Silver Might Be Priced Better Now Than It Will Ever Be Again
The metals have definitely come off of their highs. Silver, however, is sitting in a range that may never be seen again. Seeing the way that this metal has come down into the 27-28 dollar range, don’t be surprised if we see a sharp reversal and it bounces back 10-20% over the next week or two. Politically, it would be very unpopular for Bernanke to inject the economy with more QE even though he is probably exploding inside of himself to do it. The nation has spent $10.6 trillion and added $4.5 trillion in new gross debt. Several Federal Open Market Committee members said the central bank might need to take action if the U.S. economy falters or “downside risks to the forecast became great enough,” according to minutes of the panel’s April meeting. Increased focus on economic threats gives central bankers more scope to ease monetary policy, said Michael Hanson, a Bank of America Senior Economist. All these things are reasons why we will see silver climb back up. The balance between the market crash and the monetization of debt will inevitably result in a sharp increase in the price of metals in the market.
Feel Good Story
The FBI added to the pressure on JPMorgan Chase by opening an inquiry into the bank’s trading loss. Shareholders have filed two lawsuits against JPMorgan Chase and CEO Jamie Dimon in the aftermath of its trading loss of $2 billion. When it comes to fraud, JPM seriously is at the top of the list. The tie between them, the Federal Reserve, money creation, and gold suppression, this company is definitely making a name for itself. The fact that they are getting some main stream critique is hope that the deeper behind the scenes frauds will be brought to light and exposed for the masses to see.
Until next time…
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