Denner's Take on Fannie & Freddie

I have followed Robert Denner's comments on and off for a couple of years. He is readable and well-informed, with a fresh viewpoint you won't find in your local paper. His slant is contrarian/bearish and he is very knowledgeable about Peak Oil ~ rare indeed. His writing is like cod liver oil ~ goes down nasty but is very good for you.

Be sure and click over and read his whole post.

From Daily Economic Update

QUOTE This doesn’t necessarily mean that the government will have to dole out 4 trillion dollars but it does mean that they will now backstop the rest of this collapse ON YOUR DIME and the first payment due is going to be about 200 billion dollars. How does our “free market” friends on Wall Street and all the other markets in the world react TO THIS SOCIALIST INTERVENTION IN THE MARKETS?? Why you guessed it, they are up on average about 3 to 5% this morning and the US markets which open in 45 minutes are up a stagering 260 points in premarket trading which will probably equate to a 300 to 500 point gain on the day.
You see watching charts can be a good thing for you .. The markets crossed over a very important mark on Thursday and that signalled to me that something had to give. As usual I BET ON THEM DOING THE RIGHT THING FOR ONCE and as usual I was proven wrong. Instead of just letting reality finally rule on the markets and to let the blood flow, they once again deferred the pain and they bailed out the Chinese and Japanese and all the other 60 some odd National Banks. NOW DO YOU SEE why the dollar went up and why I called it manipulation. This was a tit for tat move that has been in the works for weeks now evidently.
YOU MUST UNDERSTAND NOW THAT YOUR MONEY IS NOTHING TO THEM!!!!!!! The money sitting in the markets right now is nothing more than pure unadulterated GAMBLING and cannot be considered any thing close to an investment. Investments are good things that help to pave the way to the future. They are conservative uses of money and are meant to build a future that is bright and optimistic. If you have money in the markets(and that includes your 401k money) you must understand that it is nothing but a gamble at this point. If they, with the wave of a pen, can do what they have done this weekend, what do you think they can do to your “investments”. UNQUOTE
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The Royal Bank of Scotland Doom & Gloom Siren

Real money

From The Telegraph

The Royal Bank of Scotland has sounded a loud and shrill alarm this week, saying that they advise:

QUOTE ...clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks. "A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist. A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets. UNQUOTE

Related story: Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

As a working-class American nearing retirement, I watch in dismay as the Fed pumps hundreds of billions of dollars of "liquidity" into the banking system, accepting as collateral mortgage-backed securities of absolutely NO value. The American economy is rigged with bogus statistics and unemployment and inflation are about twice as high as the official figures. Every Fiat Monetary System fails. Fiat Systems have zero sustainability due to the fact that every single "dollar" or fiat monetary unit must be "borrowed" into existence. Since the entire circulation of the currency is totally dependent upon debt for its creation and expansion there comes a time when the economy can no longer sustain the debt-servicing requirements that burdens the productivity of the economy. That's where we are now. It has happened in a similar manner time and time again yet, these facts are all but ignored by the blind Central Bankers, Media and Government Economic Wonks of the world.

Just look at how Ron Paul, Mike Gravel and Dennis Kucinich were treated by media during his compaign. Often when it was their turn to speak, TV shows would interrupt for comments, go to commercial etc. In the end we'll see gold and silver, platinum and sustainable agriculture regain their status as having permanent value.