I am forwarding this with caution since it originated with Hal Turner and if
everyone remembers it was Hal Turner that kept telling us about the Amero,
and we have yet to see the Amero.



But, I don't want to discount it either. My feelings are that this is going
to happen sooner or later, and I keep hoping its later. But maybe best to
get it over with and move on.





---------- Forwarded message ----------
From: Stephanie Sutton <ssutton@...>
Date: Mon, Jun 1, 2009 at 6:29 PM
Subject: Panic selling of U.S. Dollar
To: Patrick Flanagan <p@...>
Cc: Mohsen Sundaw <Phiometry@...>, Mary Rose <dustysummerrose@...>







Begin forwarded message:



From: "william golden" <wmgolden@...>

Date: June 1, 2009 7:10:53 PM GMT-06:00

To: "William Golden" <wmgolden@...>

Subject: Panic selling of U.S. Dollar



Dear Friends



Not to be a broken record, but in case you haven't gotten out of dollars
into tangibles, here's another warning.



Love,

William

Panic selling of U.S. Dollar
<http://turnerradionetwork.blogspot.com/2009/06/panic-selling-of-us-dollar.h
tml>
<http://turnerradionetwork.blogspot.com/2009/06/panic-selling-of-us-dollar.h
tml>
by Hal Turner
June 1st 2009
Panic selling of the U.S. Dollar has begun in overseas markets and massive
interest spikes are now hitting U.S. Treasury long-term bonds.

On Friday, the Federal Reserve has leaked information to several media
outlets saying they are "puzzled" by a sudden, sharp spike in long term
Treasury interest rates.

The Federal Reserve leaked to CNBC's Steve Liesman on Friday
<http://www.cnbc.com/id/30995478> <http://www.cnbc.com/id/30995478> that
they weren't targeting long rates. Why such a leak? Because the Fed did not
want to appear impotent in controlling the long rate. So they put out the
word through Liesman that they weren't targeting the long rate.

Can you imagine what would happen to the markets if it sensed long rates
were beyond the control of the Fed? That is exactly what is happening right
now. The Fed has, in fact, lost control of the long rates because no one
around the world trusts the US Government will actually pay back what they
are presently borrowing.

Look at the facts:

The U.S. Treasury must sell a record net $2 trillion in new debt in 2009 to
fund a $1.8 trillion projected fiscal deficit, resulting from falling tax
revenues, an economic stimulus package and sundry bank bailouts.

Investors worry this could erode the United States' cherished triple-A
sovereign credit rating when Standard and Poors's on May 21 revised its
outlook for Britain's triple-A status to negative from stable, blaming
higher government debt.

The International Monetary Fund estimates that gross U.S. debt will reach
97.5 percent of the country's GDP in 2010, which is mathematically,
"unserviceable." It simply cannot be paid back. There's no magic to this;
it's straight math.

Investors are worried about the deterioration in the U.S. fiscal outlook, or
the potential for a collapse in the U.S. dollar as the Fed floods the world
with newly minted currency as part of its quantitative easing program. As
such, they are bailing out of long term Treasuries.

In order to fund those long term Treasuries, the US Government must offer
investors much high interest rates. In fact, investors are demanding record
high interest rates.

It's the Chinese, and other Treasury bond buyers who follow the markets, who
have pulled away, to varying degrees from buying Treasury long securities.
No one wants to be the last one holding bonds, where the new debt about to
be issued is in the trillions.

China, the largest foreign holder of U.S. Treasury debt, has decided to
refocus its portfolio by leaning more heavily on shorter-term maturities.

The Fed does not want to spook the world into thinking that it can't push
long term rates down, so it says it is not trying. But as rates continue to
climb, a panic out of Treasury securities is developing and will strike with
an absolute vengeance this week.

The end of the current financial system, as we know it, is imminent. If you
would have asked me even two weeks ago if collapse was imminent, I would
have said it was highly unlikely, now I am saying it is not only possible,
it is taking place.

Fed Chairman Ben Bernanke may be able to patch things up short-term, if he
is lucky, but long term the U.S. financial structure is in serious trouble.
There is just too much Treasury debt that needs to be raised. An
international panic out of Treasury securities is taking place right now.
Overseas markets are proving this.

The Fed will be have to be the major buyer as people worldwide dump
Treasuries and the Dollar. This will ultimately mean record inflation.
Inflation the likes of Zimbabwe which saw 231 Million percent annual
inflation last July.

And keep this in mind, we have never seen a collapse of a currency like the
dollar. Even the Wiemar inflation can not serve as an example. Since the
dollar is the reserve currency of most of the world, a panic out of the
dollar means more dollars will return to the U.S, shores than any country
has ever experienced.

Other countries have had collapsed currencies, but never in the history of
world of finance has so much currency been held outside a country of issue
that could come flying back, almost on a moments notice.

Panic out of the dollar has begun. Even if Bernanke stops printing money
(unlikely), all the dollars flying back into the U.S. will cause a huge
price inflation all on its own.

Those holding long-term Treasury notes will find them worthless, probably by
the end of this summer. . . . . if the system lasts that long which is no
longer guaranteed.

It appears those who do not get out now will lose everything.

------ End of Forwarded Message






--
From the desk of
mary rose
dustysummerrose@...



[Non-text portions of this message have been removed]