The best article of the day was written by Greg Hunter on the Christmas credit card gift to Fannie and Freddie.
He details what is going to happen to mortgages in 2010-2011 and why they had to lift the debt limits to infinity!
Here is the article for you to read:
In conclusion, we will witness massive public spending driving up the Federal Debt.
Instead of March 15.10 being the supposed talks to raise its limit again, we will probably see the limit of 12.39 trillion hit in the first week of February. With GDP. still hugging aound 13 trillion dollars, the usa is rapidly approaching a debt to GDP of 100%.
This week, we saw conditions in Japan rapidly deteriorate. This nation which has the third largest economy on earth following the usa and china, has seen its total debt spiral as the ruling
parties desperately tried to climb out of deflation that hit them hard in 1989. This year their Debt to GLP level will rise to 227%.
It deficit to GDP will rise to 50%. The citizenry of Japan have taken note. The holders of Japanese debt which are its citizens to the tune of 96% of the total, are 'voting" as they exit the yen
denominated bonds and buy gold. They sense the writing on the wall. Up until this year, they have supported the bonds even with meagre returns as the government refused to hyperinflate.
Now the citizens realize that the government has no option.
Pay special attention to TOCOM figures. Gold and silver OI over there are rising in huge fashion for the first time in quite a while.
I am not sure that JPMorgan can withstand a huge demand for physical metals on both eastern fronts: China and Japan. I am sure that South Korea is watching attentively and they will follow their Asian brothers.
Have a great weekend
see you on Monday