Wednesday, June 22, 2005
For a lot of folks, the comming crash will begin in October, 2005.
Can you make your payments when your monthly minimum credit card payments double?
Take heed of the situation that is unfolding, and act accordingly.As stated above, new banking rules are slated to increase monthly minimum payments.
The cost of healthcare and other services that cannot be imported from China are only going up.
With a revaluation of the Chinese Yuan (devaluation of the dollar) that the Bush Administration so badly wants, the price of imported goods will be going up.
Oil prices continue to hit new highs. Some are predicting that the price of oil will reach over $100. This means gas prices are going up. How well are you prepared to deal with $4/gallon gas?
There are problems with private pensions and social security. Should these collapse, are you able to fund your own retirement?
Interest rates are rising. This will push up all borrowing costs, including house payments on ARMs. Is there enough leeway in your budget to compensate for this?
Real wages are falling.
Bankruptsy - Just do it!
Dollar - Devaluation...
Wessel replied that Japan held 552 billion in US government bonds, China 189 billion, Taiwan 65 billion, United Kingdom 45 billion, South Korea 43 and Germany 42 billion. "In all, foreigners held about $1.9 trillion in US government debt," observed Wessel. But he also noted, "US businesses, governments and banks had borrowed a whopping $8.36 trillion from foreigners." Call me a naive old hippie, but that seems like a whole lot of bread.
"In October 2000, Iraq persuaded the United Nations to allow Iraqi oil to be sold for euros instead of dollars, with effect from November 6," wrote Putland. With this impudent act, Hussein ensured his hasty removal.
Imagine if Hussein had succeeded--and convinced other troublesome OPEC nations to adopt the euro conversion plan? If that had happened, the US dollar would have crashed years ago, predictably plunged in value, probably in the months just before September 11, 2001.
Economists warn of slowdown in the economy by year's end
By the end of the year, America's bubbling housing prices will likely flatten or pop, causing an economic slowdown, economists warned in a flurry of reports yesterday and today.
Other signs of economic trouble also loomed yesterday. The price of oil surged to a 20-year high of almost $60 a barrel and the nation's leading economic indicators fell twice as much as had been projected. [Union Tribune]
U.S. Bullies China - Dollar Crisis Looming
In analyzing the precarious predicament that has $1.94 trillion U.S. Treasury debt owned by foreign banks, most notably China, the overloaded U. S. debt burden is already teetering on a fine line. Any hint of a problem in maintaining support of U.S. bonds would create an instantaneous meltdown of the greenback with a simultaneous surge in the price of gold.
It isn't looking good.