Thursday, April 14, 2011

IMF Notices the US Wall of Debt

I love it when the powers that be not only agree with our point, but even go so far as to use the same nomenclature. Enter the International Monetary Fund -
The world's banks face a $3.6 trillion "wall of maturing debt" in the next two years and must compete with debt-laden governments to secure financing, the IMF warned on Wednesday.

Many European banks need bigger capital cushions to restore market confidence and assure they can borrow, and some weak players will need to be closed, the International Monetary Fund said in its Global Financial Stability Report.
The Real Effect
From September 22, 2010 -
The brick wall has been found as everywhere bad news pours in -
Our dollar is diving and it is becoming conceivable that the once-great US just might not be able to float this much national debt. When this becomes obvious to all, there will be an enormous capitol flight OUT OF the dollar (bonds) and into something else, presumably precious metals. This will leave the government in the position of being unable to fund their debt at choice rates.

It as at this point that great cuts to services will be done (think healthcare/food) in order to "balance the budget." and "Restore fiscal sanity". Needless to say, many of the bureaucrats will keep their cake.
 Now my focus in that article was the Federal debt, but elsewhere (I'm looking for it), I went on to explain that this is not merely a Federal issue, but rather an global systemic debt issue. Namely, we've bled the system dry.

At least some of us don't have to be so alone now that the IMF has proved us right.

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