Yes people, I know this is ebaums, but trying to get this information out to anyone who will listen.

Wall Street and the government is crying that the worst is over - going to be rough but it is smooth sailing from here.  Well, I am going to tell you we are close to going over an economic abyss.

A little background (a VERY short summary):

The US is the cog to the global economy, without it, we all go down (which is why this Canadian is always interested in what they are doing)  Well, there are multiple problems with the States economy, but one of the largest ones is the Federal Reserve and this fractional reserve law and the creation of money. 

The US government doesn't own any money, it is all the Federal Reserve - they are loaning the US government the cash (at interest.)  Also, everytime the bank takes out a loan, they use your intial deposit and create commercial bank money, in which they use (but there is no backing to this) 

Also, banks used this money to invest in derivatives (basicly a bet) to the tune of trillions and trillions of dollars (some estimates show this figure to be greater then the GDP of the entire world).

Now we get to the start of this mess, the mortgage crisis.  The banks, the government and the idiots who took the easy cash are to blame.  The government got rid of regulations that prevented banks from loaning cash to people who could not pay for their loans (and furthermore, those banks took these crap loans and sold them around the world).  So, we have billions in mortgage loans that likely won't get paid, unless the government decides to pay them off - which it can't - will get into that later in this blog.

The government, Bush and his buddies and lets not forget Obama decided we had to bailout these banks to buy some of these worthless assets, at the tune of 800 billion (and the few trillion that the FED refuses to disclose where they sent it).  I have yet seen any information providing the fact that any of these toxic assets have been bought.

Now, we still have billions of toxic assets/derivatives - the US government is throwing caution to the wind and is spending like mad.  The states is at least 2 trillion in debt this year alone (they get the money from selling US Treasuries, an IOU from the US government) 

The problem is this, the US government expects other countries to buy their debt (especially China and Japan) but the more dollars they create, the less those dollars are worth.  So, they are saying buy our debt, but expect a loss in taking that debt.  Fucking nice of other countries to take a loss for the bankers and the idiots in government.

Well, as the dollar keeps on sinking, the faith that the US has the ability to pay off that debt is going lower day by day - and this is how the Dollar is backed up, by the faith of people that they will pay that debt.  Do you also see the FED decision to keep interest rates at 0% - news flash - the Japanese already tried this, and it still hasn't worked for them (the US dollar is becoming the next carry trade)

So we come to the end of it - I have been reading reports around the net that those Chinese are becoming extremely worried about this US debt, and perhaps they are going to pull out and take their losses....(that is not to honor any derivates)  The Chinese have started urging their public to buy gold and silver to protest their wealth...hmm, I wonder why?

The house of cards is about to break apart people.  I recommend that you start buying gold and silver, protect the little bit of wealth you have left.

(if you want to know more, this brief blog should give you enough information to get a head start on researching how much shit we are in)