Headlines & Observations

By Michael Pennington © Copyright 2010 Pennco Coins

Bank of America takes a $2.2 billion loss – The charge was to settle some of the home loan claims. Since their money is a gift from the US Taxpayer, it really doesn’t matter to them. After all, it’s only fiat money and they have plenty of it courtesy of Ben Bernanke.

White House Economist: Failure to Lift Debt Ceiling Will Be ‘Catastrophic’ – Austan Goolsbee, chairman of the U.S. Council of Economic Advisers, said if Congress fails to raise the debt ceiling, the “impact on the economy would be catastrophic.”

“I don’t see why anybody’s playing chicken with the debt ceiling,” Goolsbee said on ABC’s “This Week” program. “If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity.”

The government is slated to hit the legal limit on borrowing, currently set at $14.3 trillion, sometime in the spring, and some lawmakers have they said will demand tough budget cuts in exchange for their votes to raise the cap. Congress must agree to raise that ceiling or it could be forced to default on its obligations.

The U.S. has a $1.3 trillion federal budget deficit. President Barack Obama’s debt-reduction panel failed last month to agree on its chairmen’s recommendations for ways to reduce the annual deficit to about $400 billion in 2015.

Interesting that the government’s own economist is talking about “default” while the administration talks about how the economy is back growing???

Where has all the money gone? – As the year ended and the Stock Market continued partying, the US Govt spent $146B, or, over 10B per day….this bodes some real problems for 2011, as the debt ceiling will be breached much sooner than expected. But it begs the question: what happened to all that TARP money that was “repaid” and all that profit from GM stock, and from Citibank? This insanity will accelerate until there is hyperinflation and absolutely no way back. I suspect most of it was directed towards the Euro-Bankster bailouts….

Silver Eagle Sales Continue to Set Records – The US Mint just reported a total of 34,662,500 one-ounce American Eagle silver bullion coins were sold in 2010, up from 28,766,500 one-ounce silver bullion coins sold in 2009.

Even more astonishing, the Mint reported an incredible 1,696,000 silver bullion coins sold on the first day of American Eagle sales on Jan. 3, 2011.

Personal Bankruptcies set all-time record – The number of Americans filing for personal bankruptcy topped 1.5 million last year, as high long-term jobless rates and depressed home prices drove more households to seek court protection.


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