I said a couple of weeks ago, following the abdication of their fiscal and economic responsibilities by our political 'leaders', that 'we are so screwed'. The evidence of that reality continues to mount, in the USA and in the rest of the world as well.
Casey Research sums it up succinctly, and very grimly.
... the only fundamental that counts is what the schizophrenic, sociopathic U.S. government decides to do when it rolls out of bed on any given day.
Who knows, maybe it will decide to sell all the gold in Ft. Knox to pay down its debt? (Provided there is any gold, that is.) Could happen.
Simply, the world we will live in and the markets we invest in are inexorably linked to the desperate straits the world’s governments have gotten themselves into.
Absent the sort of painful reform we all know is needed but which almost no politician will champion out of fear of losing their job, we are headed for a sovereign debt smash-up that will ultimately blow apart the current monetary system.
I may be wrong, but I don’t think this smash-up will take overly long to arrive.
There's more at the link.
The author also mentions one report claiming that the US M1 money supply (i.e. currency in circulation plus checking account balances) grew by 5% in the week ending August 1st. If that report is true, the financial Armageddon that's bearing down on us is closer than I'd dared to contemplate in my worst nightmares. For the M1 to increase that fast, over that short a time, can mean only one thing - that the Federal Reserve has been forced to print money like never before to cover a shortfall that the rest of the world cannot absorb. For the already-inflated US money supply to increase by a full one-twentieth in the space of a single week is catastrophic. It means severe inflation - possibly hyper-inflation - in the very short term, certainly months, possibly only weeks. If that report is correct, I predict a true inflation rate for the USA - not as measured by the authorities, who've been lying about it for years, but objectively measured by experts such as John Williams at Shadowstats - of a minimum of 10%, probably 15%, and possibly (in certain sectors of the economy) as high as 20% for 2011 alone. Next year will be worse.
If - I say again, if - that report is true . . . hunt for cover. The storm is almost upon us.