U.S. Tenders China Eminent Domain? (02/23/11)There are plenty of good tidbits in this excerpt from Bob Chapman's weekly publication.
To summarize a couple: Were it not for QE1 and QE2, the financial system would have collapsed. There would have been no GDP growth. Unfortunately, there is no stopping the Quantitative Easing Train now - it will continue (however lenders will also demand increasing interest rates) - until no longer effective and the U.S. will be left facing burning inflation or hyperinflation. In 1980, the official inflation rate was 14 plus percent with bonds paying over 20 percent. Hyperinflation could see inflation of 30 percent - what would the bond yields look like then? Higher interest rates will cause problems for banks. Defaults will abound. Gold and silver will double in price and more. Here is a shocker of a rumor: the U.S. has given China a written agreement that grants China the option to exercise Eminent Domain within the U.S. as collateral for the continued purchasing of U.S. Treasury Notes. If the U.S. defaults, China can physically take U.S. land, buildings, factories, perhaps even entire cities. Here is a recent from Radio Liberty and Bob Chapman...worth a listen |
American Crier