Injin Posted May 24, 2009 Share Posted May 24, 2009 http://jessescrossroadscafe.blogspot.com/2...t-of-money.html Obama openly says what anyone with common sense has known for quite some time: the US is broke, and will not be able to honor its financial and fiduciary obligations.The question remains how the US restructures that debt and how big a haircut the debt holders will take. 20%? 30%? More like upwards of 50% at least in real terms. And who are these debt holders? Anyone who hold Treasury debt obligations and financial assets, from the Long Bond to the US Dollar, and assets guaranteed by the Federal Reserve and the Treasury. Technically the debt will be serviced and the interest paid according to the terms of the agreements, with devalued US dollars. The process will continue until the debt is restructured and the dollar is replaced with a new dollar. This may take some years. But we are now in the endgame. Didn't you just know they would spill it over a long holiday weekend? Don't be too concerned, there will be more spin and denials after this trial balloon has been floated, and life will go on. "Oh, that's not what Obama meant. He means we have a problem but there are the means and the time to address and repair it before it becomes too great." People have an enormous capacity for delusion bordering on selective amnesia. Go back and read the posts on this blog starting in September 2008. Then reflect on what has been said recently on Wall Street and you will see what we mean. We are now in the endgame of an historic credit bubble that will result in a currency crisis of epic proportions. http://www.drudgereport.com/flashocs.htm In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: "We are out of money."C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president. SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money? OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we've made on health care so far. This is a consequence of the crisis that we've seen and in fact our failure to make some good decisions on health care over the last several decades. Here we go... Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted May 24, 2009 Share Posted May 24, 2009 do you have a link to the C-SPAN interview? Quote Link to comment Share on other sites More sharing options...
Errol Posted May 24, 2009 Share Posted May 24, 2009 The admission had to be made. Perhaps now we can see some progress. Dollar to plummet next week. Quote Link to comment Share on other sites More sharing options...
Injin Posted May 24, 2009 Author Share Posted May 24, 2009 (edited) do you have a link to the C-SPAN interview? http://patdollard.com/2009/05/sobering-int...ith-video-link/ 30 seconds in. Edited May 24, 2009 by Injin Quote Link to comment Share on other sites More sharing options...
sunonmars Posted May 24, 2009 Share Posted May 24, 2009 The admission had to be made. Perhaps now we can see some progress.Dollar to plummet next week. theres one thing to know it but another to scare the sheet out of the sheeple by saying it, Obama is making a huge mistake in saying it. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted May 24, 2009 Share Posted May 24, 2009 Well, that is interesting. We are not seeing political doublespeak or spin doctored apocryphal press releases here. I wonder what the markets are going to do on Monday... Quote Link to comment Share on other sites More sharing options...
sunonmars Posted May 24, 2009 Share Posted May 24, 2009 Well, that is interesting.We are not seeing political doublespeak or spin doctored apocryphal press releases here. I wonder what the markets are going to do on Monday... I'd say drop like a bloody stone, is Obama dumb or what. Quote Link to comment Share on other sites More sharing options...
Krackersdave Posted May 24, 2009 Share Posted May 24, 2009 US and UK markets closed on Monday ain't they. Asia might be interesting though. Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted May 24, 2009 Share Posted May 24, 2009 http://patdollard.com/2009/05/sobering-int...ith-video-link/30 seconds in. ta. PS is it me or is Obama wearing eye-shadow in that intervew Quote Link to comment Share on other sites More sharing options...
Pindar Posted May 24, 2009 Share Posted May 24, 2009 I like his choice of words "we've had to spend money to salvage our financial system". In my book, salvage generally involves rescuing something that's worth rescuing. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted May 24, 2009 Share Posted May 24, 2009 Obimbo, GDP (general dumb public) baboon purple - tut tut Quote Link to comment Share on other sites More sharing options...
Injin Posted May 24, 2009 Author Share Posted May 24, 2009 ta.PS is it me or is Obama wearing eye-shadow in that intervew He always reminds me of Pob, tbh. Quote Link to comment Share on other sites More sharing options...
IDN Posted May 24, 2009 Share Posted May 24, 2009 US and UK markets closed on Monday ain't they. Asia might be interesting though. aye Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 24, 2009 Share Posted May 24, 2009 Markets, hear no evil see no evil....but when evil is spoke............ Quote Link to comment Share on other sites More sharing options...
IDN Posted May 24, 2009 Share Posted May 24, 2009 isnt a holiday about the best time to deliver bad news? americans will be out and about scoffing their fat faces with hot dogs and hamburgers watching pop idol or whatever and wont watch/comprehend this latest news. Quote Link to comment Share on other sites More sharing options...
Injin Posted May 24, 2009 Author Share Posted May 24, 2009 isnt a holiday about the best time to deliver bad news? americans will be out and about scoffing their fat faces with hot dogs and hamburgers watching pop idol or whatever and wont watch/comprehend this latest news. Yup. If it all goes seriously Pete Tong in asia they can always extend the bank holiday to a week or a fortnight as well. Quote Link to comment Share on other sites More sharing options...
Sybil13 Posted May 24, 2009 Share Posted May 24, 2009 (edited) If EVERYBODY already knows it what difference does it make saying it? Its this whole elephant in the middle of the room thing , THERE'S A BL**DY ELEPHANT IN THE MIDDLE OF THE ROOM FOR GOD SAKE, so why is everyone looking out of the window going "nice day isn't it, haven't seen an elephant for ages"!! I just don't get this. Investors surely know the US is out of money just as the UK is out of money end of the road finished. So what are we saying, investors think US & UK have something up their sleeves? Surely not, I would have thought investors as a tribe were a pretty shrewd bunch. OK you can say how shrewd were they to buy RMBS ? BUT .... I am a bear of little brain and I can see that the UK cannot print enough / borrow enough to bail out more banks and the building societies AND given them money to lend ....and for what purpose would they do that? What happens next year and the year after , where will the money keep coming from? Nobody can't plug the £200bn shortfall due to the RMBS market crashing. So what difference does it make if someone says "OK WE ARE BROKE" ....it can't make a country any more or less broke than it was before the denial can it? Surely investors KNOW don't they that the US and UK are bankrupt? Perhaps they don't. Perhaps its like most of the UK thinking that 2007 property prices are just an election away!! Failing it would seem to comprehend that the UK went broke trying to support a hugely inflated property bubble, but eventually someone has to say don't they THERE IS AN ELEPHANT IN THE MIDDLE OF THE ROOM TELLING ME MY PROPERTY SOON WILL BE VALUED AT 50% LESS. The government already know it , they stress tested the RBS and Lloyds for 50% falls + 2 years more of recession . Moody's know it they stress tested for 60% falls. Previous figures seem to confirm that if property goes up 47% (last crash) it will fall 37% , this time it went up 147% surely if a bear with little brain can see what is going to happen next investors SURE AS HELL CAN!!! Edited May 24, 2009 by Sybil13 Quote Link to comment Share on other sites More sharing options...
sunonmars Posted May 24, 2009 Share Posted May 24, 2009 because its one thing people thinking it but they hide their head and plug their ears going la la la la la. When they hear it, they turn rabid and start chucking mentals. Obama is not the brightest of creatures. However though Govt's have to keep up some confidence, this doesnt instill confidence. Quote Link to comment Share on other sites More sharing options...
Injin Posted May 24, 2009 Author Share Posted May 24, 2009 If EVERYBODY already knows it what difference does it make saying it? Its this whole elephant in the middle of the room thing , THERE'S A BL**DY ELEPHANT IN THE MIDDLE OF THE ROOM FOR GOD SAKE, so why is everyone looking out of the window going "nice day isn't it, haven't seen an elephant for ages"!! I just don't get this. Investors surely know the US is out of money just as the UK is out of money end of the road finished. So what are we saying, investors think US & UK have something up their sleeves? Surely not, I would have thought investors as a tribe were a pretty shrewd bunch. OK you can say how shrewd were they to buy RMBS ? BUT .... I am a bear of little brain and I can see that the UK cannot print enough / borrow enough to bail out more banks and the building societies AND given them money to lend ....and for what purpose would they do that? What happens next year and the year after , where will the money keep coming from? Nobody can't plug the £200bn shortfall due to the RMBS market crashing. So what difference does it make if someone says "OK WE ARE BROKE" ....it can't make a country any more or less broke than it was before the denial can it? Surely investors KNOW don't they that the US and UK are bankrupt? Perhaps they don't. Perhaps its like most of the UK thinking that 2007 property prices are just an election away!! Failing it would seem to comprehend that the UK went broke trying to support a hugely inflated property bubble, but eventually someone has to say don't they THERE IS AN ELEPHANT IN THE MIDDLE OF THE ROOM TELLING ME MY PROPERTY SOON WILL BE VALUED AT 50% LESS. The government already know it , they stress tested the RBS and Lloyds for 50% falls + 2 years more of recession . Moody's know it they stress tested for 60% falls. Previous figures seem to confirm that if property goes up 47% (last crash) it will fall 37% , this time it went up 147% surely if a bear with little brain can see what is going to happen next investors SURE AS HELL CAN!!! While the elephant owner (that serious looking guy with the big gun) is pretending there is no elephant, the elephant isn't going to be dealt with. When he exclaims "****** me! An elephant, we'd better move it" somebody is about to be trampled to death.... Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 24, 2009 Share Posted May 24, 2009 because its one thing people thinking it but they hide their head and plug their ears going la la la la la. When they hear it, they turn rabid and start chucking mentals. Obama is not the brightest of creatures. However though Govt's have to keep up some confidence, this doesnt instill confidence. and the stock markets are very very short term....if they think no-one has noticed what theyve seen, they think they can play the game to their advantage as they will be quickest out as they KNOW the truth. sadly, I think, Everyone KNOWS the truth, so we can expect everyone to pull out when they all think everyone else has noticed. a crash could be very sudden indeed. Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted May 24, 2009 Share Posted May 24, 2009 Huge news. We are out of money. It can't get any clearer than that. Quote Link to comment Share on other sites More sharing options...
crispindry Posted May 24, 2009 Share Posted May 24, 2009 Well at least the man admitted they had a problem... Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 24, 2009 Share Posted May 24, 2009 Well at least the man admitted they had a problem... indeed, he is a debtaholic and admission is the road to recovery.....shame a fresh bottle of debt is being poured over his face. Quote Link to comment Share on other sites More sharing options...
crispindry Posted May 24, 2009 Share Posted May 24, 2009 Thing is the markets already know whats going on don't they? So acknowledgement of a problem could mean the first signs of recovery. Quote Link to comment Share on other sites More sharing options...
Alan B'Stard MP Posted May 24, 2009 Share Posted May 24, 2009 Huge news.We are out of money. Nah. You'll have forgotten about it by next week. Quote Link to comment Share on other sites More sharing options...
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