And that is just the official policy – leaving out any hidden agenda that people like me think that Comrade Barack (and his Legion of allies) have.

Therefore (all the above being taken into account) anyone who risks their money on a real (as opposed to Federal Reserve generated) American recovery has only an insanity defence.

I am serious – lawyers may already be thinking of what cases can be brought against banks, investment advisers (and so on) that advised their customers to put their money in things like American Treasury Bonds. And State and local bonds.

After all the evidence is out in the open. At best there is going to be a de facto default (via inflation).

As for the stock market – it is no secret that it a Federal Reserve bubble.

The important words there are “no secret” – i.e. the evidence is out the open. So people who have advised their clients to invest in the American stock market or have done so with clients money (as funds do) are laying themselves open to furture legal action when the market crashes (which it will – sooner or later, and not much later).

For the record I REJECT this form of legal reasoning – I beleive you are still free to reject investment advice (pull your money out of fund, or whatever) and should not go screaming to a lawyer when things go wrong.

However, that is not how many American (and more and more nonAmerican) lawyers see things.

I think Tim Geithner is actually sanguinary about the USA’s credit rating. Geither seems to think he can get blood from a turnip.

There NEVER WAS a trust fund.

Perhaps I should have written “Alleged SSTF” or “Claimed SSTF”. I agree it does not actually exist, but the fraud is on the books.

And the thing is, the rating agencies are often a lagging indicator — they usually act only after the smart guys in the market have already moved their money. I can make an argument that default, in a sense, has already occurred. What else is QE? It’s the Fed printing money so it can “buy” Treasuries that were otherwise unsellable at a rate that the Treasury could afford. If those $500M of Treasuries has been auctioned on the open market, the cost of that borrowing would have gone way up, and done even further damage to the budget. (Instead, the Fed is playing a game of chicken with the bond market. They’re trying to see how much existing liability they can inflate away without the inflation-adjusted yield on existing bonds going negative. One miscalculation, one little flinch, and it’s going to look like Webber at Valencia.

There are hard times ahead in the United States. I read this article last night from “The New Individualist”. Quite frankly, it paints a very gloomy picture.

PLEASE STOP using that ‘term’ in any fashion.

There IS NO trust fund.

There NEVER WAS a trust fund.

That damn systems was ‘pay as you go’ FROM THE BEGINNING and once the income exceeded the liabilities ( starting on DAY ONE ) the crooked bastards COULD NOT keep their hands out of the money pot
and have used it to buy votes ever since.
In addition, the bastards who passed this abomination, FDR et al, KNEW ( like many politicians know today ) that they would be long gone ( out of office if not
dead ) before ‘the bill came due’.

Today, the ignoramuses in this country ( of which we have an over abundance of ) who have gotten their ‘economic education’ from television REALLY think that the gov’t has warehouses full of money ( trust fund etc. ) and it’s all freeeeeeeeeeeeeeeeeeeee !