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Preparing For the Coming US Debt Default Pt 2

Phoenix Capital Research's picture




 

This is a continuation of my first article: Preparing For the Coming US Debt Default Pt 1. As a brief recap, that article focused on the fact that the debt issue plaguing Greece and Europe have arrived at the US’s shores.

 

Once lenders figure out that there’s an increased risk of them not getting their money back, they:

 

1)   Lend for a much shorter time period (hopefully insuring that you get your money back before the inevitable bust).

2)   Demand a far greater yield (higher interest rates).

3)   Stop lending.

 

Well, we’ve already got #1 in the US.

 

The Debt Spiral Has Begun

 

The US has entered a debt spiral: a situation in which more and more debt needs to be issued at the same time that lenders are unwilling to lend to the US for any lengthy period of time (greater than three years).

 

On top of this, the US must to roll over trillions in old debt at the same time that it needs to issue an additional $150 billion in debt per month to finance its current deficit.

 

Indeed, in the next 5 years alone the US will have 73 days in which it needs to roll over $20+ billion in debt and 46 days in which it needs to roll over $30+ billion.

 

Again, we are in a debt spiral. Investors are piling into short-term Treasuries hoping to have some kind of security based on stock market volatility. But eventually the long-end of the Treasury market will collapse due to lack of demand: the world will figure out that the US is unable to repay its debts and will not be willing to invest for 30 years anymore.

 

On that note, if you’ve yet to take steps to prepare for the US debt default, you can download my FREE report devoted to showing in painstaking detail how to protect yourself and your portfolio from the coming ROUND TWO of the Financial Crisis (round one wiped out $11 TRILLION in wealth).

 

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own, which to avoid, and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

 

Again, this is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.

 

Good Investing!

 

Graham Summers

 

PS. We also offer a FREE Special Report on the inflation situation in the US. This other FREE Special Report, The Inflationary Disaster explains not only why inflation is here now, why the Fed is powerless to stop it, and three investments that absolutely EXPLODE as a result of this.

 

All in all its 14 pages contain a literal treasure trove of information on how to take steps to prepare AND profit from what’s to come. And it’s all 100% FREE.

 

To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.

 

 

 

 

 

 

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Fri, 07/29/2011 - 02:34 | 1503589 bullet357
bullet357's picture

Burn baby Burn ...down down down

Fri, 07/29/2011 - 01:47 | 1503538 Whalley World
Whalley World's picture

Off topic but, Iwant to send a shout out to Bill Bonner of Daily Reckoning fame.  When do you hear about Bill on the MM media?  For F sakes, Oprah should have had him on.  Financail Reckoning Day (|shout out to Addison Wiggin) called it all way in advance.  Just had to say, need to send out props to Bill Bonner and crew,

Fri, 07/29/2011 - 01:48 | 1503537 Whalley World
Whalley World's picture

Off topic but, I want to send a shout out to Bill Bonner of Daily Reckoning fame.  When do you hear about Bill on the MM media?  For F sakes, Oprah should have had him on.  Financail Reckoning Day (|shout out to Addison Wiggin) called it all way in advance.  Just had to say, need to send out props to Bill Bonner and crew,

Fri, 07/29/2011 - 00:32 | 1503398 PulauHantu29
PulauHantu29's picture

"Home prices are now back to the early 2000s.  I think that certain markets in California still have a way to go before hitting a nominal bottom.  Some harder hit areas like the Inland Empire may be closer to bottoms based on income to price ratios but many areas eerily resemble micro-bubbles.  A lot of this drive is psychological in nature but psychology is not going to make your paycheck increase.  The Secret is not going to magically wash away our government debt.  It might make you feel better, which is good, but math has little sympathy for reckless spending."

http://www.doctorhousingbubble.com/wp-content/uploads/2011/07/case-shill...

 

http://www.doctorhousingbubble.com/this-time-is-different-real-estate-lo...

The Doctor speaks with Silver tongue.

Fri, 07/29/2011 - 00:22 | 1503365 Sunshine n Lollipops
Sunshine n Lollipops's picture

"the world will figure out that the US is unable to repay its debts and will not be willing to invest for 30 years anymore."

How 'bout a week? I swear we'll get it back to you--plus the vig--by next Tuesday. Wednesday at the very latest. C'mon, we're good for it. You got nothin' to lose--like I said, if for some crazy fukin reason we can't come up with it, Yellowstone is yours. Or the Yankees. Take your pick.

Fri, 07/29/2011 - 00:44 | 1503423 Blotsky
Blotsky's picture

Yeah (Uncle) Sam... But we've already bought 60 sq. miles in Idaho. Just give us the state and we'll take off the interest for a month. Sound like a deal?

Fri, 07/29/2011 - 00:13 | 1503344 RockyRacoon
RockyRacoon's picture

Debt spiral, Bitchez!

I hardly ever get to fully express myself.   Sorry.

Fri, 07/29/2011 - 00:58 | 1503459 Hacked Economy
Hacked Economy's picture

Wow...Rocky...I never knew you had it in you.  :)

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