Gold higher, commodities in general rebounding ...

A lot of drama on the world theatre of economic and social happenings! China, in order to ensure economic growth and amid fears of slowing growth, is set to invest 1.7 trillion U.S. dollars in a stimulus program over the next 5 years. Europe is continuously experiencing more and more deficit problems among the different members of the Euro-Zone and Egypt's interim government offered to resign. The move called into question the ligitimacy of the country's military rulers, who for months have faced increasing demands that they step aside for a new democracy. 

The U.S. Economy grew more slowly (2% annually) over the summer (2nd. quarter) than the government had earlier estimated (2.5% annually), because of businesses cut back more sharply on restocking of shelves. The Commerce Department said Tuesday that the after-tax incomes fell by the largest amount in two years, reflecting high unemployment and lower pay raises.

Comex December gold futures prices are trading higher in early U.S. trading Tuesday morning. Precious metals are seeing a corrective upside bounce from the strong selling pressure seen on Monday that did produce fresh near-term technical damage for both gold and silver. A weaker U.S. dollar index, higher crude oil and other commodity market prices are bullish “outside market” forces for the metals Tuesday morning. December gold last traded up $15.30 at $1,693.90 an ounce. Spot gold last traded up $15.80 an ounce at $1,693.50. December Comex silver last traded up $0.664 at $31.78 an ounce.

The so-called super committee of U.S. congress members failed to agree on U.S. spending cuts, which was confirmed by congressional leaders Monday. Meantime, the EU debt crisis has stabilized just a wee bit Tuesday following a somewhat well-subscribed Italian bond auction. The market place was also relieved after key ratings agencies said they would not immediately downgrade the U.S. credit rating after the super committee failed to reach agreement on spending cuts. There are key EU economic reports out later this week, and with the U.S. Thanksgiving holiday on Thursday, many U.S. traders and investors are a bit worried that with U.S. markets closed on Thursday, the world market place may be able to get the jump on the U.S., regarding any fresh, major EU developments that could occur on Thursday.

The U.S. dollar index is seeing a corrective pullback on Tuesday after hitting a six-week high on Monday. The dollar index bulls still have some upside near-term technical momentum and that is still a bearish underlying factor for the precious metals markets. Crude oil prices are trading higher Tuesday morning but have backed well down from last week’s high as the crude bulls have faded to suggest a top is in place for that market.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs chain store sales index, the second-quarter GDP estimate, the weekly Johnson Redbook retail sales report and the Richmond Fed business activity survey.

The London A.M. gold fixing was $1,697.50 versus the previous P.M. fixing of $1,702.00.

Technically, December gold futures prices on Monday closed near the session low and were hammered to a fresh four-week low. Near-term technical damage has been inflicted recently, including more Monday. Bears have the slight near-term technical advantage. Bulls' next upside technical objective is to produce a close above technical resistance at Monday’s high of $1,727.40. Bears' next near-term downside price objective is closing prices below solid technical support at $1,604.70. First resistance is seen at the overnight high of $1,700.60 and then at 1,727.40. First support is seen at Monday’s low of $1,667.10 and then at $1,650.00.

December silver futures prices Monday and hit a fresh four-week low. Near-term technical damage has been inflicted in silver recently. Bulls next upside price breakout objective is closing prices above solid technical resistance at $34.00 an ounce. The next downside price breakout objective for the bears is closing prices below major psychological support at $30.00. First resistance is seen at the overnight high of $32.005 and then at Monday’s high of $32.415. Next support is seen at the overnight low of $31.16 and then at Monday’s low of $30.65.

As economies around the world are finding themselves pushed into realism - politicians can only calm their constituents for so long with only words and no deeds - we will see the overall commodity markets increase in their valuation due to the, possibly, immediate onset of a depression (one morning we'll wake up with "the news") and the thereto related hyper-inflation and enormously high, slowly growing, unemployment (potentially into the 20-30%). The real insight is not being provided to the general public and as such, once economies start imploding rapidly around the world, a panic will arise among the people. The same people that are being lied to daily to apeace them (for now!). Why is it so hard to inform the same people honestly so we can jointly work on resolving the problems at hand. It always appears that side-stepping is easier for the short-term with some incredibly large future issues, than considering going straight forward for the long-term with some smaller side issues.

Sources: Kitco, Apmex, open internet sources, Yahoo, internal sources.

Euro up, dollar weaker as agencies back U.S. debt ...

The euro firmed, while the dollar weakened on Tuesday, after credit-rating agencies maintained their views on the sovereign debt of the U.S., encouraging investors to embrace risk.

Fitch Ratings late Monday was the latest agency to maintain its stance on U.S. debt, after a special U.S. debt-cutting committee said they had failed to reach a deal to reduce the federal budget deficit.

Earlier Monday, Standard & Poor’s and Moody’s had both held their ratings unchanged.

The affirmation of U.S. ratings “caused all-round relief” during Asian trading hours, said Sebastien Galy, currency strategist at Societe Generale. Concerns of failure by the U.S. debt committee had led stocks on Wall Street sharply lower on Monday, with the Dow Jones Industrial Average slumping 2% Monday, while investors sought refuge in both the dollar and the yen.

The rating agencies’ backing, however, caused a reversal of those trends. The dollar index (IFUS:DX-Y.NYB), which measures the U.S. unit against a basket of six major currencies, declined to 78.208 from 78.267 late Monday, according to FactSet Research. Against the yen, the dollar fell to ¥76.88 from ¥76.97 late Monday. The euro (ICAP.C:EURUSD) rose to $1.3529 from $1.3503, also benefiting from investors’ embrace of risk.

However, the sovereign-debt crisis in Europe is likely to remain at the forefront of concerns in the near term, said Kathy Lien of GFT Forex.

Moody’s on Monday warned that French debt could lose its triple-A rating given the increase in borrowing costs and slowing growth.

“A downgrade of France would cause far more carnage on the market than a downgrade of Spain or Italy even though it would all be extremely bad on the market,” Lien said in a note. “The resilience of the euro probably has more to do with short covering and position squaring ahead of an important holiday in the U.S.,” she said. Meanwhile, S&P on Tuesday said Spain’s double-AA minus credit rating wasn’t affected by the results of Sunday’s general election, which saw the opposition center-right Popular Pary win an absolute majority.

Meanwhile, the Indian rupee (ICAP.C:USDINR) firmed slightly, trading at 52.63 against the dollar. On Monday, it fell more than 1.6% to reach 52.21, its lowest level since March 2009 as investors dumped high-yielding currencies to seek the safe haven of the dollar. While interest rates in the U.S. are near zero, the Reserve Bank of India has been hiking rates since March 2010.

The rupee could remain under pressure, however, due to dollar demand by Indian oil importers near the end of November, according to Mumbai-based Angel Broking.


(Sources: Nick Godt / Markets / Market Watch / Independent sources)

The economy as we don't see it ... yet!

Angela Merkel (Germany) stated clearly over quite some time that the world needs to get used to Europe's adjustment to its "living beyond its means" as it needs to rethink its economic and social strategy. People feel they are entitled to a lifestyle without balance, a lifestyle of "take, but no give". As I grew up in Europe, I already noticed the luxury cars at the unemployment offices every Wednesday, where "unemployment pay" was handed out, the work hours going from weekly 40 to 32, more and more government interference and higher taxation with less and less representation. Greed started to take over as the impoverishment of World War II slowly faded away and "rights" became "claims without achievement". Societies have no longer a sense of pride, incentives to achieve individually are gone, rewards for accomplishments are barely existent and selfish and secular individual behavior is clearly on the rise. And not only in Europe, mind you!

If you look at Europe (17 member nations in the eurozone), it appears that real economic growth is the only way to come out of the economic chaos (which is only in its infant stages, but rapidly growing) in a healthy fashion. The problem is that in order to create this real economic growth, sacrifices will need to be made among which entitlements. Government workers will need to be reduced in numbers, the private industry will only thrive on incentives to achieve (keeping more of what you make so that risk-taking becomes interesting again), austerity and self-pride need to be promoted again among many other actions that need to be taken. The debt crisis in most European countries is not being contained and appears to lead toward the imploding of smaller and then larger banks, first in southern Europe, then all of a sudden overnight into northern Europe and the rest of the world.

Falling revenues, debt ratings, banks subjected to unserviced debt from other nations (e.g. Greece), and governments unable to access capital markets only enlarge the problems. Excessive public spending leading to rapidly contracting economies, first locally, then internationally and then inter-continentally, will ultimately bring the entire economic world to its knees and into a depression, not a recession, mind you, of which the likes we have not seen yet in economic world history with hyper-inflation (25%-35%), unemployment numbers (25%-30%) combined with starvation and civil war leading up to wars among nations (see also previous blog). This scenario will be energized and thus worsened by the actions taken by Middle-Eastern countries, specifically Iran, Syria, Egypt and surrounding nations.

When looking at a few eurozone nations, observe how Belgium is nationalizing banks (Dexia), has a stalling economy (being 6th in the euro region) when looking at its third quarter, in which growth of its gross domestic product was the same as for its second quarter, 0.4%. Cyprus is completely falling apart with a demand for austerity by the IMF after an 11-day visit. Its real estate & construction sector alone is down 40%! Portugal's contraction is up from 1.8% to 2.2% and its overall economic condition is downright poor, but nothing compared to Spain where the unemployment has risen from 20.9% during the last quarter to 21.5% this quarter or close to 5 million unemployed! This percentage is the highest since 1996.

And France is only becoming very aware of the new economic environment it finds itself in. In a recent television program, France's President Sarkozy shared with his constituents that hard times are coming and that instead of budget cuts of 8.5 billion, they will now need to be 11.3 billion U.S. dollars. France's public debt is already more than 70 billion U.S. dollars per year and increasing rapidly as such.

And then there is Germany, the healthiest of all and the backbone of the European economy, appearing to stall in its economic growth as of next year. The last quarter it only grew by 0.4%.

A visit to China by European leaders was very disappointing as little to no results were obtained. It appears now that the European markets will continue to contract rapidly and once this accepted by its leaders, Europe will go into a free-fall overnight taking the rest of the world economy with it in its crash.

When this happens, not "if" in my opinion, and due to today's technological communication systems worldwide, we will see that a depression will be entered from one day to the next and serious problems will arise in economic, socio-demographic and possibly military terms.

My prediction is famine, world-unrest, wars before we see a - possibly not - return of peace and quietness and a rebuilding of trust and world economies. I will discuss more details in blogs to come. The stock markets are extremely overvalued, gold/silver and other commodities are undervalued, including oil. Corrections of tremendous proportions will take place. "When", you are asking ... within 6-9 months the start will be quite obvious at the very latest, I believe. Hopefully, I am wrong!

Hopefully, leaders of all kinds, worldwide, will take constructive and corrective action to make people believe in themselves again, to correct the economic wrongs of the past and to bring economic discipline where it is needed and social flexibility where it is demanded. It is clear that hard and decisive actions have to be taken for this world economy to have any change of survival in the form as we know it.

What in the world is going on?

Here we are, November 7, 2011, and people, all different people tend to act surprised when certain events happen. Or ... they tend to act as if what has been said or done, was the most normal statement/action in the world. What am I talking about? Take President Bush for instance, when he stated, I believe sometime in 2002, that when he looked Mr. Putin of Russia in his eyes, Pres. Bush could tell that he was a man, who is to be trusted. At that time, as it is today, anyone with some international expertise/experience knows, that France, China, Iraq, Iran, some other countries and, oh yes, the former U.S.S.R., today's Russia (after deducting some former nations) have always been in bed together and could never be trusted regarding their decision making policies on international level. Their interests have always been opposite to the interests of the U.S.A. Therefore, Mr. Putin could not be trusted and proof is in the pudding again if we watch today's current events.

Why am I bringing this up. Last week, during the "Open Mic"-controversy conversation at the G20 Summit in Cannes, France, between President Obama and French President Nicolas Sarkozy, Sarkozy called Israeli Prime Minister Benjamin Netanyahu "a liar" while stating "I cannot bear Netanyahu, he's a liar" upon which our President replied "You're fed up with him, but I have to deal with him even more often than you!". For your information, this event was kept purposely from the public by AP, the Agence France, Reuter, among others. They sat on the story for about a week as they believed the story to be "too sensitive".

We hear and see how the United States, mainly since 2009, has held to an anti-Israeli policy while at the White House level this is publicly denied. However, the White House-talk is not being walked! The only friends Israel has had for at least the last 20 years are the United States. Don't we realize that if we go along with the Palestine Statehood via the U.N.-vote, that Israel is being put in a position to defend itself verbally and militarily and thus leading to terrible world events?

Under the same reactive behavior from the U.S., the U.N. as well as Europe (all member states/countries), we have been witnessing the dual build-up of nuclear weapons by Iran as its leader, Ahmandinejad, continuous to openly state to want to annihilate the State of Israel as soon as Iran is in the position to do so. Meanwhile, Iran has been receiving the assistance/knowledge from Russia and North-Korea over the past few years to build long-distance rockets capable of carrying nuclear warheads.

Since its inception, the Iranian nuclear / missile programs received assistance from foreign nations, companies and individual scientists on a technological, educational and material level. The governments that come to mind are the one's of China, Pakistan, North Korea and Russia. Iran appears now to be ready for nuclear action at its moment of choice. And, this action will not necessarily only be undertaken against Israel, but possibly at the same time against Europe. Maybe the reader needs to be reminded that all flight testing of Iranian missiles were to assure that the distance from Iran to Europe could be overcome and it has.

Bringing the aforementioned topics hand-in-hand, we witness the ignorance, the naiveté and/or the purposeful behavior of world leaders regarding Iran's clear goals and action as Iran continuous to push forward with its nuclear and missiles program to a definite level of success. The result?

Not only will Israel and Europe be part of Iran's game plan, the entire world will be. Nobody talks about the reasoning for all the aggressiveness that Iran has shown over the years, which is "the 12th. imam" and the Mahdi as understood by Ahmadinejad and the Muslim Brotherhood (it is at this time outside the realm of this discussion to go deeper into this topic, but I would encourage the reader to educate him/herself on this issue as it will become crucial within world events before too long!).

The reasoning by Iran and others in positions of power, is going to lead the world into chaos and ultimately into Armageddon and it is to be emphasized more and more so people increasingly feel the need to educate themselves. As a popular TV-host stated so often, "don't take anything at face value. Do your own homework. Make your own decision. This is information you need to know". And, it is information you need to know. Many books have been written about this topic and therefore I will exclude the topic for now from this discussion while encouraging you, the reader, to become an educated reader.

My point in this blog is simply this, as the world economy is about to fall apart (see next blog), the timing is perfect to create chaos through war from outside as well as from within and the United States leadership is not helping to prevent all of this from happening. Either due to purposely allowing future events to take place or due to naiveté, either is equally horrific taking into account the ultimate consequences.

And again, if I am wrong, great! But, if what I think and believe to know, is right, then we are all in for a big, big, let's just say "problem", not surprise!

 

Below an article by Maseh Zarif I believe to have some relevance to the topic at hand.

Undeterred Iran Nears Nuclear Weapons Capability

By Maseh Zarif

November 7, 2011

Bilateral meeting between Mr. Fereydoun Abbasi Davani, head of the Atomic Energy Organization of Iran, and IAEA Director General Yukiya Amano at the IAEA 55th General Conference, September 19, 2011. (IAEA)

Iran is rapidly approaching the acquisition of a nuclear weapons capability as U.S. and international efforts to prevent or deter it from crossing that threshold have failed. Sanctions imposed by the U.S., UN, European Union, and other Western allies in 2010 and 2011 have not had a significant impact on Iran’s ability to develop a weapons capability or on the regime’s nuclear policy. During this period Iran has overcome the most difficult technical obstacle to acquiring a nuclear weapons capability: the enrichment of uranium from 3.5% to 20%. Enrichment at 20% is near bomb-grade purity given the relative ease of enriching from 20% to weapons-grade levels (near 90%). There are increased indications that the regime has simultaneously worked on acquiring two other elements of a nuclear weapons capability—nuclear payload and delivery vehicle systems—that are far less technically challenging than the production of bomb fuel. The clock is fast ticking down to a nuclear Iran.

Since 2009, Iran has increased its stockpile of low enriched uranium hexafluoride from 1,010 kilograms to 4,543 kilograms.[1] This current stockpile, once enriched further to bomb-grade levels, would fuel roughly four nuclear weapons.[2] Perhaps most significantly, the expansion and increased enrichment levels of the stockpiles have dramatically reduced the time required to produce bomb-grade fuel.[3] Nuclear proliferation expert Gregory Jones assesses in a technical analysis using publicly available data that Iran could now produce enough fuel for a nuclear weapon using its current stockpiles of enriched uranium in roughly two months.[4] In 2008, it would have taken Iran 2-4 years to achieve the same result, according to Jones. An increase in production of uranium enriched to 20% will further reduce the time required for “break-out.”

Recent statements by Iranian officials indicate that the regime intends to transfer the advanced enrichment program to a more fortified facility, moreover. The head of the Atomic Energy Organization of Iran, Fereidoun Abbasi Davani, who has previously been linked to the covert weaponization element of Iran’s nuclear program, has announced that enrichment up to 20% will be transferred from the Natanz facility to the Fordo facility near Qom.[5] The latter facility, given its smaller size and the initially covert nature of its construction, was likely built to produce nuclear weapons fuel clandestinely.[6] Fordo is built inside a mountain complex within an Islamic Revolutionary Guard Corps base. The likelihood of a successful targeted aerial strike against Iran’s enrichment program will decrease, possibly significantly, if the most advanced enrichment activities are transferred into this facility.

This week the International Atomic Energy Agency (IAEA) will publish a quarterly report that will further detail the agency’s growing body of evidence related to Iran’s weaponization activities that the IAEA has warned about over the last year.[7]  In its last report in September, the agency indicated that it is corroborating the information it has on Iran’s work in this area, initially published in February 2011, and that Iran has stymied inspectors’ efforts to investigate further:

…the Agency is increasingly concerned about the possible existence in Iran of past or current undisclosed nuclear activities involving military related organizations , including activities related to the development of a nuclear payload for a missile, about which the Agency continues to receive new information…The information available to the Agency in connection with these outstanding issues is extensive and comprehensive and has been acquired both from many Member States and through its own efforts. It is also broadly consistent and credible in terms of technical detail, the time frame in which the activities were conducted and the people and organizations involved.[8]

The agency’s release of additional details may also discuss Iran’s related work in the area of delivery vehicle development. A key concern noted in the May 2011 report was Iran’s “design work and modeling studies involving the removal of the conventional high explosive payload from the warhead of the Shahab-3 missile and replacing it with a spherical nuclear payload.”[9] The Shahab-3 is capable of delivering nuclear, as well as biological and chemical, warheads. Several recent military exercises publicized by the regime have showcased Iran’s ballistic missile arsenal. Iran has, in parallel, covertly developed and tested ballistic missiles, including the Shahab. British Foreign Secretary William Hague revealed in June 2011 that Iran has conducted covert ballistic missiles “capable of delivering a nuclear payload.”[10] A 2011 UN report confirmed that Iran carried out unannounced tests of the nuclear-capable Shahab-3 and Sejil-2 missiles in October 2010 and February 2011.[11] Both of these missiles have ranges exceeding 1,200 miles.[12] The latter is also Iran’s first medium-range ballistic missile using solid fuel propellant; solid-fuelled missiles can be launched more rapidly than liquid-fuelled missiles. That Iran has conducted such testing covertly suggests that any outside assessment of Iranian capabilities may be at risk of underestimating Iran’s progress in acquiring a nuclear delivery vehicle system.

The threat of a nuclear weapons-capable Iran is now a fast approaching prospect. An increasingly hostile Iranian regime that just attempted to launch an attack on American soil, and that is now poised to exploit the American withdrawal from Iraq, has not been deterred from pursuing its nuclear ambitions.

---

[1] The current figure is as of August 13, 2011. See the full report athttp://www.iaea.org/Publications/Documents/Board/2011/gov2011-54.pdf.

[2] “Iran’s Nuclear Timetable,” Wisconsin Project on Nuclear Arms Control, May 25, 2011,http://www.iranwatch.org/ourpubs/articles/iranucleartimetable.html.

[3] Gregory S. Jones, “An In-Depth Examination of Iran’s Centrifuge Enrichment Program and Its Efforts to Acquire Nuclear Weapons,” Nonproliferation Policy Education Center, August 9, 2011, http://npolicy.org/article.php?aid=1092&rid=4.

[4] Analysts at the Institute for Science and International Security have contended that it would take Iran six months to produce a bomb’s worth of weapon-grade uranium. See http://isis-online.org/isis-reports/detail/critique-of-gregory-joness-breakout-estimates-at-the-natanz-fuel-enrichment/. 

[5] Najmeh Bozorgmehr and James Blitz, “Iran to boost uranium enrichment,” Financial Times, June 8, 2011,http://www.ft.com/intl/cms/s/0/b86411f4-91ff-11e0-b8c1-00144feab49a.html#axzz1cf5PMWm1. For a profile of Abbasi Davani and his role in Iran’s nuclear program, see David Albright, Paul Brannan, and Andrea Stricker, “Will Fereydoun Abbasi-Davani lead Iran to nuclear weapons?” Institute for Science and International Security, June 24, 2011, http://isis-online.org/isis-reports/detail/will-fereydoun-abbasi-davani-lead-iran-to-nuclear-weapons/.

[6] For more on the Qom facility, see http://www.irantracker.org/nuclear-program/uranium-enrichment-facility-near-qom-brief-background.

[7] During the IAEA’s board meeting on September 12, IAEA director Yukiya Amano suggested, in a sign of increased frustration, that he would release this information in further detail to member states.

[8] See the full report at http://www.iaea.org/Publications/Documents/Board/2011/gov2011-54.pdf.

[9] See the full report at http://iaea.org/Publications/Documents/Board/2011/gov2011-29.pdf

[10] Statement to the UK House of Commons, June 29, 2011, http://www.fco.gov.uk/en/news/latest-news/?view=PressS&id=623229182.

[11] The UN Panel of Experts report has been not been officially released by the UN because Russian diplomats have blocked its publication. “Envoys: Russia blocks UN report on Iran arms sales,” Reuters, May 12, 2011,http://www.msnbc.msn.com/id/42995447/ns/world_news-mideast_n_africa/t/envoys-russia-blocks-un-report-iran-arms/. A copy of the report, however, is available at http://www.innercitypress.com/1929r051711.pdf.

[12] “Unclassified Report on Military Power of Iran,” Department of Defense, April 2010.

Problem resolve ...

Albert Einstein once said:

"The significant problems we face cannot be solved at the same level of thinking we were at when we created them!"

PETA has at it again!

Here is a little side-note for you.

PETA, under the 13th. Amendment, is "representing" 5 - I assume Orka - wales at SeaWorld. PETA claims that they are held against their will in captivity and as slaves.

No further comments.

Overall view of U.S. Current Events ...

When the Community Reinvestment Act ("CRA") is a federal law created to be an incentive to the banking and savings institutions to help meet the need of borrowers from all socio-demographic segments in the United States and within their  their respective communities, low- and middle-income neighborhoods. Federal Regulatory Agencies would enforce the statute by checking compliance of the CRA and by taking the results of their review into account when approving the applications of these institutions for new branches, mergers or acquisitions. In plain English, the government forced the banks to extend loans to pretty much anyone, financially able and capable to take on a loan or not, extending as much as 125%  loan-to-value. If the aforementioned institutions could not show that they had a high enough ratio of such loans extended over each predetermined period (e.g. a calendar quarter), then they would be punished by not having their applications for mergers, acquisitions or new branches approved by the Agencies. In my opinion, pure extortion!

Now, moving forward to 2008, and not forgetting all Acts and rulings enforced by the U.S. Government in the meantime and before 1977, "all of a sudden" the derivatives created by selling these mortgage loans in packages to the "open market", are so polluted, that a fair market value could no longer be established and basically the value of the housing/real estate markets (nationwide and worldwide) fell apart. As such, financial institutions, heavily invested into these holdings, fell apart (e.g. Lehman Brothers) and the overall equity market became very shaky as trust was and is completely gone (the Dow Jones Industrial Index went from approximately 11,400 to around 6,500 in 2008.

Housing values dropped - in some cases 50-60% - and still today, no-one knows what the real values of the real estate markets are. This undermines our complete financial system. We have a real estate market that is about to fall apart, we have an equity market that - see later blogs - is build on very shaky pillars and thirdly, the commodity market has become very unstable (what will happen when the entire oil market falls apart, energy prices tumble, supplies become uncertain, etc...). When all three markets tumble uncontrollably (equity, real estate and commodity markets), the economic environment can be defined as a depression. High inflation rates (hyper-inflation), high employment rates (15% - 35%), low productions ratios, low consumption rates, higher savings rates, the undermining of the national currencies and sort-alike ratios, will lead to complete chaos and in my humble opinion to a depression (sociological and economic) of which the likes we have never seen. Ask yourself a simple question, "what is one to do if you don't have income, your currency has devalued tremendously to the point where it has become worthless, you have no savings and your kids need fed? What is one going to undertake in real action to feed his/her children and self? Do we start by demonstrating, then hunger sets in and we steal, then it becomes really desperate and we undertake what action next? What will society local, state, national and international turn into when that happens? At this time, just a question to make you think about it!

We are now spending more than we are taking in. We are seeing that the government (U.S.) is spending more and more in relation to its own GDP (Gross Domestic Production or total of all national products & services produced). And we are reaching a deficit ratio that is about to surpass 100%  in relation to the GDP. Once that happens, I believe we are entering - as a nation - bankruptcy. We cannot have a nation where the government believes that the solution to resolve the financial crisis is to employ more and more people with itself as someone (the taxpayer) has to pay for it. Once you surpass the economic limitations (the laws of finances - you cannot spend more than you take in over the long-term), it becomes nearly impossible to recuperate and to govern responsibly.

At this time, we see Greece and many other nations implode. Citizens feel they are entitled to all their so-called "rights" and will not allow their governments to make the necessary changes. As such, we are now seeing demonstrations and the beginning of anarchy. Not to forget the nations no-one mentions yet: Ireland, France, Spain, Portugal, Italy (southern Europe) and then following the richer northern European nations: Belgium, The Netherlands, Germany, Switserland, Austria, Scandinavian countries, etc. Little banks are already imploding, larger banks to follow. Germany will not continue to "feed the hungry nations" and cannot continue to forgive large debts of foreign nations (40 Billion U.S. Dollars to the Greek banks alone!). Eventually, if immediate action is not taken, all will implode (large/small banks, governments, complete hierarchies of power and structure and complete populations will feel left in the dark upon which it would not be unreasonable to assume that war among nations will be purposely created! Once the European markets/countries fall apart, the rest of the world is only to follow (Japan, the U.S., Canada, etc.).

The aforementioned is merely an introduction to the individual segments to follow on this "blog". However, it is intended to make the reader think about the unforeseeable and yet foreseeable consequences of what is taking place on the world theater. Not even mentioning the Middle-East yet, Russia and many other "fronts". Let this just be an introduction of more to come.

Obviously, it is a subjective take on events that take place and are about to take place as well as sometimes a historic view on past events. Therefore, if the reader, with his/her subjective viewpoint, sometimes backed by objective facts as is the case with me, would like to provide feedback in a constructive and respectable format, I would welcome such action anytime. The more people think about the issues and concerns at hand, the more ultimate solutions might be brought to the table. And, ... we never know who's table it might be!