Unsustainable Debt
Research for Online Investors

by John Dalt

6/29/09

According to the Congressional Budget Office, “The choice facing policymakers is not whether to address rising deficits and debt but when and how to do so. Debt is projected to soon grow to unsustainable levels...” You can read the Congressional Budget Office report here; it will put you to sleep. This report has been buried. You won’t see it discussed on the Sunday Morning Talk shows. Our government is seeking to destroy the value of the dollar. This is the only way out of all the new spending and existing entitlements. And you just thought the bad news this weekend was Michael Jackson and Farrah Fawcett leaving us alone to pay taxes. Keep buying TBT.

The FDIC closed five banks this weekend, with assets of $1.04 billion.  That makes 45 this year.  This weekend cost the FDIC $264 million.

Sometimes I think I am too suspicious of OH! Bama, then I read an article like “Obama creates a deadly power vacuum” in Asia Online.  A few gems from the article, “Obama doesn't want to betray the United States; he only wants to empower America's enemies…. In his heart of hearts, Obama sees America as a force for evil in the world, apologizing for past American actions that did more good than harm.”   The author explains how actions the U.S. has taken, that have been condemned by Oh! Bama and other travelers, have led to world stability.

Would the people of Iran been better off under communism rather than the Shah? What about Chili, or Nicaragua, of course we all saw how generous the Communists were with the citizens of South Vietnam. A great read from Asia Times.

The big news today was Bernie Madoff picked up 150 years in Federal custody.  Better than bank robbery, $50 billion divided by 150 equals $333 million per year.  And Bernie did not even have to wear a mask!

There was very little excitement in the market today short of crude oil.  China announced it was going to increase its oil reserve and Nigerian militants shut down an offshore oil platform.  Nigerian militants are not a group of sandal wearing hoodlums.  I read an estimate this weekend that the militants may steal up to 200,000 barrels of crude oil per day!  That produces enough income to create some real problems.

Across the board, volume was light. The unemployment report comes out Thursday morning. The markets will be closed on Friday for the holiday.

I went to the Liberty Dollar website this weekend.  I always enjoy reading someone that is willing to thumb the government in the eye. They coin gold and silver dollars for use in trade.  The Federal Government does not like the competition.  Uncle Sugar is concerned that gold or silver dollars may undermine the trust in Federal Reserve Notes.  Dah.  Here are some of the pretties…

Alan Greenspan said in 1966, "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process."

Funny how truths are forgotten, and time changes attitudes.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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