Saturday, January 24, 2009

Obama OK's murder of children and the economy

As expected,Obama has signed off on Government sponsored,and paid for,murder of unborn children.I know,if you're an abortion supporter,I certainly won't change your mind.I wouldn't expect to influence someone without morals or values.If you are undecided,you may think both sides are extremist in their views.I would just ask that you study up on the exact procedure involved in partial birth abortions,which Obama also favors.If you support that,you and I are so far apart it's not worth discussing.

Pay attention to what the Treasury is up to.They post some information on their website,not all the juicy details of course.Their balance sheet is reflecting the huge differential in 1 year that commercial paper is now backing their assets.This commercial paper is the same volatile,risky debt such as consumer credit cards and car loans that has brought down the biggies on Wall St. recently.This may not affect Joe Blow on the street right now,but your day is coming.If this trend continues,we are increasing reliant on China,Japan and Saudi Arabia to buy our debt and furnish the bailout and stimulus spending sprees.Keep in mind,they are currently doing this only receiving an average 2-3% yield on their Treasury securities.This is the Federal debt interest we pay.Should their own economies slow enough that financing our debt no longer looks attractive,they will stop spending.Normally,when their Treasury securities expire,they simply roll them over.If they stop buying and start cashing these in to claim the principal,this will trigger the endgame.Our Fed will have to make the Treasury print money to buy these securities and devalue the dollar worldwide.You may still have the same amount of greenbacks in your wallet and bank,but they will not be worth as much due to reduced buying power.This will start the snowball down the hill with no good solution to stop it.

Iceland became the first Government to fail due to the credit crunch.More are certain to follow.Think the Fed is too big to fail like we've heard so much lately on Wall St.?Better wake-up because you're not paying attention.More to come...

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