100824 - U.S. Deficit Really $202 Trillion


Uploaded by HyperReport on 24.08.2010

Transcript:
Hello, this is Scott... And this is the Hyper Report for August 24th
of 2010.
Gold is currently trading at 1217.55 Siver is at 17.86
The Silver to Gold Ratio is 68.16 Oil is at 72.23
and the US Dollar is at 83.45
First... U.S. Deficit Really $202 Trillion
The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion
this year. As the deficit grows so does the national debt, which is currently more than
$13.3 trillion, according to official figures. According to this article, the “real”
deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid,
Social Security and the defense budget - is actually $202 trillion or 15 times the
“official" numbers. The U.S. will have a major inflation problem to rival that of Germany's
post World War I Weimar Republic. Considering the way inflation is calculated, I would not
be surprised; therefore, do do not buy into anything that can be printed... Speaking of
printing...
Next... Don’t Buy Anything That Can Be Created With
a Printing Press We’re already eight years into what is probably
a 20 year secular bull market for commodities. Copper at 85 cents a pound? Oil at $8 a barrel
is long past, but don't let the current prices scare you off because they are still going
up. The food commodities are probably among the cheapest resources around, with corn,
wheat, and soybeans coming off the back of bumper crops in 2009 at absolutely killed
prices. Through an unconventional commodity play, the impending shortage of water will
make the energy crisis look like a cake walk. Who will need new fresh water supplies the
most? China.
Next... Why Quantitative Easing is Likely to Trigger
a Collapse of the U.S. Dollar A week ago, the Federal Reserve initiated
a new program of "quantitative easing" (QE), with the Fed purchasing U.S. Treasury securities
and paying for those securities by creating billions of dollars in new monetary base.
Simply put, printing money out of no where and buying US debt. With the U.S. economy
predictably weakening, this second round of quantitative easing appears likely to continue.
The unintended side effect of this policy shift is likely to be an abrupt collapse in
the foreign exchange value of the U.S. dollar. So get ready for headlines that say something
to the affect "Experts Surprised at the Collapse of the US Dollar" and the minor headline "Martial
Law!"
Next...
Colorado Gov. says Pot Fees Helping Budget Deficit
Gov. Bill Ritter is using $9 million from medical marijuana registrations to help the
state meet a $60 million dollar fiscal emergency. The state anticipates ending the year with
150,000 applicants for medical marijuana cards, up from 41,000 in 2009. A marijuana card costs
$90 per year. Well, if he wants to boost the budget some more, why doesn't he just put
a pot cigarette machine in every high school? After all, doesn't joints make you smarter?
The budget and education - solving two problems at once. Isn't that special.
Finally, Please prepare now for the forthcoming economic,
and subsequent social, unrest that will hit the US.
Good Day