Friday, June 11, 2010

US Liquidity Crisis Coming in 2 Years – Unless…

Thank You to Muskegon Pundit for bringing this article about Mad Money Cramer to my attention.

Cramer’s been known to rail against elected officials. As a matter of fact, this whole week has been dedicated to helping viewers sidestep the damage caused by meddlesome governments. But every once in a while he’s forms a Vulcan mind meld of sorts with a politician over an issue that’s important to both of them.

On Thursday, it happened again. Cramer desperately wants the US government to sell $2 trillion worth of 30-year Treasurys to help this country avert a liquidity crisis. And Senator Tom Coburn, R-Okla., agrees with him.

Put this together with what Mike Larson and Martin D. Weiss have been writing about and predicting for the past year.

Debt Facade Cracking in U.K. as Sovereign Contagion Spreads
by Mike Larson 06-11-10

When Greece’s markets first started cracking wide open, a lot of claptrap spewed forth from Wall Street. The general consensus:

• The problems in Athens would stay bottled up in Athens.

• They would remain “contained.”

• They didn’t mean anything for larger economies, including the rest of Europe, the U.K., or the U.S.

Me? I told you the exact opposite …

I said the implosion in Greece’s stock and interest rate markets — stemming from concerns about that country’s massive debt and deficit problems — were a huge red flag. They foretold a collapse in other sovereign debt markets, with collateral damage in currencies and equities.

Lo and behold, markets are now weakening worldwide. And this week, the contagion spread to the U.K. The British pound got hammered, while the FTSE 100 Index rolled over, amid concern the U.K. would be the next domino to fall!

What It Means to You …

The U.S. has still not suffered the consequences of its profligacy. Our bond market is hanging in there, while our interest rates haven’t surged … yet. But I still believe it’s only a matter of time.

Meanwhile, while our bond market is temporarily ignoring these problems, the stock market sure isn’t. The Dow plunged more than 320 points last Friday and another 115 points on Monday before experiencing a minor dead cat bounce.

My big picture view?

It looks like the easy money, “bought and paid for” rally is coming to an end. Investors are waking up to the fact that governments can’t keep borrowing and spending forever without torpedoing their own balance sheets. FULL STORY

I always like to try and connect the dots by using all points of view and putting these articles together so that you the reader can see the whole picture before making important decisions in your life.

For the past two years, I have been following Gerald Celente's Trends Journal. Celente has been so accurate in his predictions, I believe that anyone who doesn't at least make an effort to listen to his interviews and take head to what Celente has to say, deserves whatever unfortunate downfall they may encounter.

Gerald Celente has a solid track record. He has predicted everything from the 1987 stock market crash and the demise of the Soviet Union to green marketing and corporate downsizing. — The Detroit News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about. — CNBC

When CNN wants to know about the Top Trends, we ask Gerald Celente. — CNN Headline News

Gerald Celente on Financial Sense Newshour with Jim Puplava June 05 2010

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