John Williams (shadowstats.com) describes the present crisis as a Monetary Inflation that can only get worse, leading to a Great Depression.
To get hold of the big picture, think that last week the U.S. House of Representatives cleared H.R. 6312, the Credit Union, Bank and Thrift Regulatory Relief Act of 2008, INCREASING LIMITS on commercial real estate loans, from 400% (of the Federal savings association's capital) to 500%.
Got ,000?, spend 0,000 (400%). No, wait, spend 0,000 (500%).
Q. Why would sane congressmen want to throw more fuel on the fire (ie: increasing the aggregate amount of loans)?
A. Because they are working for the Federal racket: Democrats and Republicans.
10-year treasuries yield only a little over 4%, yet the Federal Reserve is lending money at 2% (the interest rate that banks charge each other) to cover a 10% return; the interest rate needed for real estate loans to make it in 40 years.
There's a walloping 8% gap, who's paying for the party?...you guessed right, "is US Inflation at 8%?", it sure is!
The U.S. economy continues to grow, but 70% of that growth is fueled by consumer spending, Americans are leveraging their houses as Inflation eats up all wages and we enter stage two of the American mortgage collapse.
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