Archive - Jan 15, 2010

Pray tell, how can anyone in their right mind trust the economic reporting of company that says it is running 13 cylinders of an 8 cylinder engine leading the world to economic recovery when they overtly, and without denial, censor free speech and publicly outlaw research and even Internet searches on government activities?

The grave unemployment situation not only undermines the economic health and recovery hopes, but is also acting as a major source of financial strain on the Fed's books. It is observed that the Fed has been taking in huge deficits on its books because of UI programs. The total UI withdrawals on Fed books in 2009 were $139 billion against deposits of just $31 billion received from states for unemployment. While the withdrawals in 2009 have increased by 320% when compared with withdrawals in 2007, the deposits have declined by 6.6%. The deficit has increased to nearly $107 billion from nearly no deficit, two years ago.

Are bond markets signaling the start of the Great Transition? Will inflationists or deflationists get the last laugh?