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Next, there's some information I need to share with you, fellow Brattleboro friends and associates:
First, consider this:
Last Friday, this low-key announcement was quietly placed on the Federal Reserve website:
"On March 23, 2006, the Board of Governors of the Federal Reserve
System will cease publication of the M3 monetary aggregate. The Board will
also cease publishing the following components: large-denomination time
deposits, repurchase agreements (RPs), and Eurodollars."
Holy smokes!!!!
This means that the Federal Reserve has decided that whatever amount of
monetary creation it shortly envisions, it would rather not report upon.
This statistic has been reported for decades and is used by foreign central
banks and economists for their own purposes and calculations.
The fact that it will be dropped is being viewed with great concern across
the pond. Over here, needless to say, it is relatively unreported.
Here's a good link if you wish to read more:
http://www.dailykos.com/story/2005/11/11/16272/574
Next, take a close look at the article below....then read my comments at the
end.
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A 'Fiscal Hurricane' on the Horizon
Economists Say Unchecked Spending Will Trigger Recessions and Worse
By Richard Wolf, USA TODAY
WASHINGTON (Nov. 15) - The comptroller general of the United States is
explaining over eggs how the nation's finances are going to hell. "We face a
demographic tsunami" that "will never recede," David Walker tells a group of
reporters. He runs through a long list of fiscal challenges, led by the
imminent retirement of the baby boomers, whose promised Medicare and Social
Security benefits will swamp the federal budget in coming decades.
The breakfast conversation remains somber for most of an hour. Then one
reporter smiles and asks, "Aren't you depressed in the morning?"
Sadly, it's no laughing matter. To hear Walker, the nation's top auditor,
tell it, the United States can be likened to Rome before the fall of the
empire. Its financial condition is "worse than advertised," he says. It has
a "broken business model." It faces deficits in its budget, its balance of
payments, its savings - and its leadership.
Walker's not the only one saying it. As Congress and the White House
struggle to trim up to $50 billion from the federal budget over five years -
just 3% of the $1.6 trillion in deficits projected for that period - budget
experts say the nation soon could face its worst fiscal crisis since at
least 1983, when Social Security bordered on bankruptcy.
Without major spending cuts, tax increases or both, the national debt will
grow more than $3 trillion through 2010, to $11.2 trillion - nearly $38,000
for every man, woman and child. The interest alone would cost $561 billion
in 2010, the same as the Pentagon.
>From the political left and right, budget watchdogs are warning of fiscal
trouble:
· Douglas Holtz-Eakin, director of the non-partisan Congressional Budget
Office, dispassionately arms 535 members of Congress with his agency's stark
projections. Barring action, he admits to being "terrified" about the budget
deficit in coming decades. That's when an aging population, health care
inflation and advanced medical technology will create a perfect storm of
spiraling costs.
· Maya MacGuineas, president of the bipartisan Committee for a Responsible
Federal Budget, sees a future of unfunded promises, trade imbalances, too
few workers and too many retirees. She envisions a stock market dive, lost
assets and a lower standard of living.
· Kent Conrad, a Democratic senator from North Dakota, points to the
nation's $7.9 trillion debt, rising by about $600 billion a year. That, he
notes, is before the baby boom retires. "We're not preparing for what we all
know is to come," he says. "We're all sleepwalking through this period."
· Stuart Butler of the conservative Heritage Foundation projects a period
from now until 2050 in which tax revenue stays stable as a share of the
economy but Medicare, Medicaid and Social Security spending soars. To avoid
big tax increases, he says the government has to "renegotiate" the social
contracts it made with its citizens.
· Alice Rivlin and Isabel Sawhill of the centrist Brookings Institution put
their pessimism into a book titled Restoring Fiscal Sanity. Rivlin, who
became the first director of the Congressional Budget Office in 1974, says
it will take an "economic scare" such as the 1987 stock market crash to spur
action. Sawhill likens the growing gulf between what the government spends
and takes in to a "Category 6 fiscal hurricane."
More at:
http://aolsvc.news.aol.com/business/article.adp?id=20051115072509990003&_ccc
=5&cid=403
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Taken together, all the signs are indicating that this spring the Federal
Reserve is anticipating some heavy-duty action that will require them to
literally "print up a mountain".
Should this happen, and the world revolts against this unwanted flood of US
dollars, things could easily get, um, interesting.
The key to it all will be to watch the interest rates.
They are the core of the US bubble 'reactor'.
Its looking like this gig is nearly up.
What can you do?! Plan ahead:
-- Food & Water: Community gardens in Brattleboro and the area. On your own land if you have it?
-- Think about how you will stay warm!
-- If you have the resources . . . consider buying gold and putting it away safely. The dollar is going to devalue. Also, those plastic cards will likely simply stop working.
-- Meet your neighbors. Nobody will survive in isolation, only communitys stand a chance. Violence breeds violence, lets not go there.
-- Change is normal in history, and while scary and result in better things on the other side. Lets ride the storm rather than let it ride us!
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happen until 2007 (springtime), and then there are those who say
there won't be a crash for even longer, and then there are those who
say the crash has already started. Stocking up on water and land
might not be enough to save you. Look what happened to the
Germans when the deutschmark crashed, in 1920. Home gardens
weren't enough. And I remember way back in 1999, when Y2K hit.
Boy was that ever a mess! Entire computer systems broke down,
nuclear warheads were fired, and many of us died. :)
A healthy dose of skepticism protects against rabid gullibility. If in
fact things do turn out for the worst, there's nothing wrong with
having examined all the options before rushing out to build that bomb
shelter in your backyard. And a diverse portfolio is ALWAYS a good
idea.