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Message: Government at a crossroad

Government at a crossroad

posted on Mar 25, 2010 04:40PM


First Nate's debt saturation chart showing pumping more money into the system is now having a negative effect on the economy.http://economicedge.blogspot.com/2010/03/most-important-chart-of-century.html

Second, Jordan's article regarding hyperinflation being due to a failure in the bond market. http://thedailygold.com/chartstechnicals/watch-the-bond-market-not-bank-lending-or-velocity/?p=2664/

Third, zerohedge had a graph showing the interest expense payment tsunami. http://www.zerohedge.com/article/fed-runs-out-low-rate-options-ust-must-be-considering-wholesale-shift-out-risky-assets-bills

And fourthly, the terrible treasury auctions we had yesterday and today.

I believe we are at a cross roads, Ben's money printing and stealth treasury QE actions are starting to NOT have the desired effect. So we have two options:

The US government goes bankrupt, ala greenspan-guidotti rule.

Or Banana Ben needs more zeros on his QE spreadsheet.

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