The Coming Depression 
Monday, Feb 9, 2009
Comments: Gold has risen 173% since 2001, while the dollar has dropped 32%. WATCH THIS 10 minute video on why the US dollar WILL COLLAPSE and be REPLACED. Over the past 36 years gold has gone UP 1900%! Includes charts and figures, this is NOT not a conspiracy site!
The prospect of the United States defaulting on its debt is not just likely. Its inevitable, and imminent.
US debt default to make dollar collapse.
The regulatory black holes into which sanity and reason disappear on a daily basis are soon to collapse under the mass of their sheer size. The circle jerk going on among G7 governments has to end – the steady advance of gold, even in the face of a managed price, exposes the real value of the U.S. dollar, as opposed to its apparent value expressed in the dollar index.
Is 2009 the year that the United States formally defaults? And with that, will the dollar collapse and be rolled back ten for one or more?
There are a lot of reasons to support that theory. To Wall Street economists, such an event is heresy and therefore unthinkable. Yet Wall Street is the very La-la-land that bred the idea of a perpetually indebted nation in the first place.
- A d v e r t i s e m e n t
Number one among the indicators favoring this scenario is what is happening in the U.S. Treasuries auction market.
(Article continues below)
Last Thursday, an $30 billion auction in five-year notes failed to stir the interest of traditional primary dealers. The auction itself was saved by an anonymous “indirect” bid.
Buyers are discouraged by the prospect of what is expected to amount to $2 trillion total issuance for the full year of 2009. The further out the maturities on notes, the more bearish the sentiment towards them. The only way to entice buyers is through the increase in yields.
But with yields at 1.82 per cent, five-year notes were met with a demand for 1.98 times the amount offered – the lowest bid-to-cover ratio since September. A sell-off in treasuries began in earnest upon the conclusion of that auction.
The increased demand for gold as an investment witnessed throughout the last two weeks that has pushed gold to a 4 month high is further evidence that investors across the board are gravitating more towards gold and away from U.S. debt.
Check out these MASSIVE losses!
Citigroup – $301B
Goldman Sachs – $98.5B
JP Morgan Chase – $20.1B
BNP Paribas – $10.4B
UBS – $225B
Commerzbank – $32.1B
Fifth Third Bancorp – $3.6B
Mizuho MFG – $5.5B
Mitsubishi Financial Group – $760M
US Bancorp – $3.0B
Merrill Lynch – >$115.4B
Wells Fargo – $138.6 B
Morgan Stanley -$107.3 B
CIBC – $10.7B
Bank of Montreal – $1.2B
Deutsche Bank – $155.1B
Societe Generale – $30.1B
HSBC Bank – $27.7B
Credit Suisse – $94.5 B
SunTrust – $2.0B