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22/03/2009
ALAN FRANKLIN writes: Here's a man who's even gloomier than me! Bill Federer in St Louis sent me this article, which I now share, with just a few comments edited out. It's written by a man who sells gold, so obviously he has an angle. However, I agree with the broad thrust of what he says. That's why we called our latest book: Goodbye America, Goodbye Britain. We too saw this coming.
| The Mother of All Depressions (MOAD)Bob Moriarty Mar 19, 2009 The US government lit the fuse to the $683 trillion dollar derivative's debt bomb on Wednesday March 18, 2009 with the announcement the Fed would purchase $300 billion dollars worth of US Treasury rubbish and an additional $750 billion dollars worth of mortgage backed rubbish. In total, the commitment to counterfeit over a trillion dollars leaves only $682 trillion dollars worth of derivatives to sort out. Economics is all about price discovery. No one knows what the real value is of the $683 trillion dollars in derivatives. No one knows who owns what. No one knows who owes what. If left to its own devices, the market would lower prices until all assets had a value to someone. The government in its infinite wisdom has just short-circuited this discovery mechanism. This is the end of the dollar. Everyone with any sense on earth will be unloading both their treasuries and mortgage-backed junk on the Fed. The Fed has just poured $1 trillion of counterfeit money into a $683 trillion dollar cesspit. It can't possibly fix the problem. When the world realizes the impact of the Fed monetizing all debt, there will be a total default. And then what happens? The Mother of All Depressions. The ability to publicly fund its debt has been what has kept the US government spending. Once that ability is dead, so is the government. The meeting of the G20 in London on April 2, 2009 will be the most important financial meeting in history. If the delegates do not adopt a new gold standard of honest money, the dollar will totally default within a few months. The fuse has been lit. There is nothing the government can do beyond what they have already done. Nothing has worked. Nothing can work. Bob Moriarty President: 321gold
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Not everyone who says to Me, 'Lord, Lord,' will enter the kingdom of heaven, but he who does the will of My Father, who is in heaven will enter. Many will say to Me on that day, 'Lord, Lord, did we not prophesy in Your name, and in Your name cast out demons, and in Your name perform many miracles?' And then I will declare to them, 'I never know you: depart from Me, you who practice lawlessness.'
Matthew 7:21-23
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