The following from our long-time reader, Bonnie D.:
“The cuts should be their ‘throats,’ the day they are out of office.”
Salary of retired US Presidents ………….$450,000 FOR LIFE
Salary of House/Senate members ………$174,000 FOR LIFE
Salary of Speaker of the House ………….$223,500 FOR LIFE
Salary of Majority/Minority Leaders ……$193,400 FOR LIFE
Average salary of a soldier DEPLOYED IN AFGHANISTAN – $38,000
Average income for seniors on SOCIAL SECURITY – $12,000
I think we found where the cuts should be made! If you agree…
|The Gold & Silver Con, Hyperinflation & The Euro Collapse|
Also, check out Gerald Celente on YouTube – (Prepare for a bank holiday)
|Celente, Corzine The Great U.S. Bank Holiday|
BACKWOODS JACK IS BACK –
On Thursday, I sent Backwoods several articles and graphs hoping to finally get him to see how ominous things are. I quoted several people that I knew would have credibility with him, including Bill Gross, head of Pimco.
Backwoods, being Backwoods replied:
Bill Gross is a Titan on Wall Street, no doubt. We differ in that I do not see him as a defeatist. Much of the money he manages is in TBills so he must have some faith in the US dollar. I was wrong if I implied he was a wing nut.
Here is my reply to Backwoods Jack (a dear friend):
PIMCO DIVESTED ITS PORTFOLIO OF US TREASURIES MANY MONTHS AGO. GROSS AND HIS NUMBER TWO MAN, EL ERIAN WROTE MANY ARTICLES ABOUT THIER LOSS OF FAITH IN THE DOLLAR AND THE US TREASURY MARKET. THAT IS TELLING BECAUSE THEY WERE THE LARGEST HOLDER OF TREASURY DEBT IN THE US. THIS IS NOT ABOUT BEING A DEFEATEST. HE IS BEING A REALIST. I AM NOT A DEFEATEST – I TRY MY BEST TO BE A REALIST. YOU ON THE OTHER HAND WILL ONLY ACCEPT A ROSEY OUTLOOK, EVEN IF ALL THE INFORMATION POINTS IN ANOTHER DIRECTION. YOU ARE, FOR LACK OF A BETTER PHRASE, A COCKEYED OPTIMIST. THAT’S NOT A BAD THING, BUT IF IT WEREN’T FOR MY OPENING YOUR EYES TO PRECIOUS METALS, YOU WOULD GO TO THE POOR HOUSE WITH A SMILE ON YOUR FACE.
YOU SEE, YOU DO NOT RELY ON FACTS, ONLY ON MISINFORMATION TO DEBUNK WHAT I TELL YOU. CHECK OUT THIS UTUBE LINK ON GROSS DUMPING TREASURIES:
|PIMCO Dumps US Treasuries|
WORSE YET, GROSS SAYS “Unless entitlements are substantially reformed, I am confident that this country will default on its debt.”
NOW YOU HAVE BOXED YOURSELF INTO A CORNER – YOU ADMIT THAT GROSS IS CREDIBLE SO WHAT DO YOU SAY NOW WHEN YOU SEE YOU WERE DEAD WRONG ABOUT GROSS AND THAT IN FACT HE HAS LITTLE FAITH IN THE US AND EVEN WARNS WE COULD (PROBABLY WILL, THROUGH INFLATION) DEFAULT ON OUR DEBT LIKE ALL THE OTHER BANNANA REPUBLICS.
IT’S ABOUT TIME THAT YOU BIT THE BULLET AND ACKNOWLEDGE THAT THINGS ARE VERY BLEAK AND THERE IS LITTLE HOPE THAT THEY WILL IMPROVE. AS FOR A STRONG ECONOMY NEXT YEAR, FORGET ABOUT IT! THE RICH WILL GET RICHER AND THE OTHER 90% WILL GET POORER. THAT, MY DEAR FRIEND, LEADS TO SOCIAL UNREST, THE KIND YOU ARE SEEING IN N. AFRICA AND S. EUROPE. THE GENIE HAS BEEN LET OUT OF THE BOTTLE. IT IS NOW JUST BEGINNING WITH THE WALL STREET PROTECTS ACROSS THE COUNTRY. PEOPLE ARE MAD BECAUSE THERE ARE FEW GOOD JOBS AVAILABLE AND BASIC NECESSITIES ARE COSTING MORE AND MORE. SOON, THEIR FRUSTRATION WILL BE DIRECTED AT ANYONE WITH WEALTH, LIKE YOU AND ME, AND NOT JUST THE WALL STREET BANKERS. YOU MAY LAUGH, BUT NOT FOR LONG. (BY “WEALTH,” I MEAN ANYONE WHO HAS MORE THAN THEY DO!)
World’s largest bond investor Pimco dumps US Treasuries (www.guardian.co.uk)
Bill Gross, who runs Pacific Investment Management’s $236bn bond fund believes that US may be in danger of default.
Bill Gross of Pimco, the world’s largest asset manager, has bet on a fall in the value of long-term US government debt.
The world’s largest bond investor has given the United States government a massive vote of no confidence, likening Congress to a skunk and betting $7bn (£4.3bn) against US Treasuries.
Bill Gross, who runs Pacific Investment Management’s (Pimco) $236bn bond fund, predicted that America’s growing budget deficit and rising debts put the world’s largest economy in danger of default. As a result the government will need to pay higher interest rates on its Treasuries to compensate for the growing risk of owning them, he said.
A rise in interest rates would push down the price of US government bonds because they are a fixed-income product, leaving investors sitting on a loss.
Last month, Gross bet on a fall in the value of long-term US government debt, including Treasuries, by “shorting” it. Pimco sold $7bn worth of borrowed US government debt in the hope of buying it back later at a lower price. These short trades came a month after Pimco sold its $28bn of US government debt.
Gross is particularly concerned that the US has had a fiscal deficit – the difference between government spending and revenues – of more than $1 trillion in each of the past two years and believes expensive “entitlements” such as Medicare, Medicaid and social security have spiraled out of the control.
As a result, he expects Treasury prices will suffer badly when the Federal Reserve stops its program of buying them. The Fed plans to have bought a total of $800bn of US government debt by the end of June.
Referring to Pepe Le Pew, the cartoon skunk, Gross said, in his April newsletter: “I think of Congress that way,” before adding “You ain’t smelled nothin’ yet … We are smelling $1 trillion deficit as far as the nose can sniff.”
Gross continued by pretending he was giving testimony before Congress into America’s current debt crisis.
“Unless entitlements are substantially reformed, I am confident that this country will default on its debt … You must attack entitlements and make ‘debt’ a four-letter word.”
Nick Parsons, Head of markets strategy, Europe, at National Australia Bank, added: “Comments from Bill Gross are very important because for many years he has had an enviable track record as a bond investor. Any trade recommendations they make will have a very large effect on the market.”
He said: “We agree with their call.”
Here are some interesting charts that say a lot about the way things are headed. This is the kind of information that Backwoods Jack refuses to acknowledge.