What the HELL is going on?

Trouble with getting a Liberal education, no one ever tells you the truth about money.


Lucky circumstances, and my Family is in fairly good shape.


Many are not. Why?


CREDIT, DEBT, and Greenspan.


There is no way on God's green and verdant earth, can we escape the gathering Currency Crisis about to grip the World.


I post articles from some of the hundreds of people I interview, and also throw in my own stuff, just to take the 'layman's side'. 


Straight up - I hated economics, when I went to University - but I had a great 201 Educator named Edgar Efrat. 


Dr. Efrat was a pragmatist. 


He was still Keynsian, but he knew had an audience of bored morons like me and so he tried, valiantly, to make the "Dismal Science" interesting.


He did.


He looked across the sea of 230 of us Freshmen and said something to the effect that you are are in for a nasty surprise "There is NO FREE LUNCH."


Trouble is - for the last ten years - ridiculous interest rates, derivatives and sleazoids on Wall Street have SCREWED it up, big time.


I got into University when even middle class kids could go.
Not anymore.


I think University taught me how to become an alcoholic and little else. (*21 years sober).


I learned more from talking to John Rubino, Dr. Mark Faber and many others in my Radio career- (*thanks to the prescient Tom Allen at the excellent howestreet.com).


I will post and see if you are in agreement with me, that we are on the precipice of a very dangerous era.


I have made some dreadful mistakes - so take NOTHING at face value. 


Make your own decisions.
I will bring the info.


You bring the brains.


Ben Bernanke is a high functioning MORON, if he doesn't know what's going on.


Cheers.


The Uber Editor  (trying to make myself sound like a big shot)

Consumers borrowed more for 8th month in May

Americans took on more debt in May and used their credit cards more for only the second time in nearly three years. Consumers stepped up their borrowing just as the economy began to slump and hiring slowed.

The Federal Reserve said Friday that consumer borrowing rose $5.1 billion in May, the eighth straight monthly increase. It followed a revised gain of $5.7 billion in April. Borrowing in the category that covers credit cards increased, as did borrowing in the category for auto and student loans.

The overall increase pushed consumer borrowing to a seasonally adjusted annual level of $2.43 trillion in May. That was just 1.7 percent higher than the nearly four-year low of $2.39 trillion hit in September.

Borrowing is a sign of confidence in the economy. Consumers tend to take on more debt when they feel wealthier. That boosts consumer spending. Ultimately, it gives businesses more faith to expand and hire. But an increase in credit card debt can also be a sign of people falling on harder times.

The economy added just 18,000 jobs in June, the fewest in nine months, the Labor Department said Friday. It was the second straight month of feeble job growth. The unemployment rate rose to 9.2 percent, the highest rate of the year.

Economists have said that temporary factors, in part, have forced some employers to scale back hiring plans. High gas prices have cut into consumer spending, which fuels 70 percent of economic activity. And supply-chain disruptions stemming from the Japan crisis have slowed U.S. manufacturing production.

The increase in credit card borrowing marked only the second monthly gain since August 2008. Households began borrowing less and saving more when unemployment spiked during the Great Recession. Many have resisted pulling out their credit cards in the two years since the downturn ended. Even with the May increase in credit card debt, this category is down 4.4 percent over the past year and 18.5 percent from its peak in August 2008.

High unemployment, slow wage growth, and a weakening housing market have forced people to be more frugal. Analysts believe the rise in student loans reflects the slumping economy: more people who have lost jobs have returned to school to get training for new careers.

The Reality of the Mess we are in.

Over the past ten years, I have been hip deep in watching what is happening on the World Economic front.
I have been lucky enough to interview, meet and talk with some of the most brilliant thinkers on the Planet.
These folks have let me in on a secret.
Things are actually WORSE than you are told.

There, I said it and I show my economic stripes.

I am a self admitted BEAR and have been for about three years.

In the coming months, I will be pulling articles for you, that I believe just might help us servive this horrible DEPRESSION that we are in, and I have some bad news - this downturn is going to last a Generation.

The doomed, fat, sclerotic Boomers best have some cash - because the RE they have thrown their money into is about to be gone.

That aside - there is cause for hope.

Read Garth Turner, John Rubino, visit Howestreet.com and 321gold.com

Stay tuned - I will be posting everyday.

Cheers = and be ready.