A key trend has been has been rising government debt and today's news that the government's debt is now forecast to be $414 billion more than the August forecast certainly keeps that trend intact. Less than half a year and the forecast is light by nearly half a trillion dollars. After briefly presenting the numbers, the article turns to the usual tiresome political arguments as if there were some way out of this mess if the Republicrats could just get along with one another. Sadly, there isn't.
Financial chicanery is another theme that remains in place as yesterday's news that the FASB bowed to pressure by the banks. As noted by Zerohedge, the banks get to report loans on their books at inflated prices rather than market prices keeping the lipstick on a pig so to speak. How can one judge the safety of a bank when they are permitted to use fairy tale accounting? There were 157 bank failures in 2010 whereas prior to 2008 the number was typically a half dozen or so. We won't be buying bank stocks anytime soon.
But here's something you can take to the bank-- the fiat Federal Reserve Note is back to slowly sinking.
A weekly chart of UUP is even more telling. Tonight the phrase "Commodity Prices Still Falling Despite Weakening Dollar" is all over the internet. The agricultural commodities and precious metals were up today so the writer is focusing on oil.
Faced with unimaginable debt, government and financial systems controlled by powerful self-interests, and a weakening currency, emphasizing hard asset investments still seems prudent. Put it this way, if you a had to chose whether to hoard a $10,000 bill or $10,000 of gold for 10 years starting today, which would you chose?
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