6-Aug-11 News-State Dept urges U.S. citizens to leave Syria

[John]

6-Aug-11 News -- U.S. State Dept. urges U.S. citizens to leave Syria immediately

Hizbollah’s dilemma on Syria uprising

** 6-Aug-11 News -- U.S. State Dept. urges U.S. citizens to leave Syria immediately
** http://www.generationaldynamics.com/cgi-bin/D.PL?xct=gd.e110806b#e110806b

** 6-Aug-11 World View -- S&P downgrades U.S. debt
** http://www.generationaldynamics.com/cgi-bin/D.PL?xct=gd.e110806#e110806



Jobs report contains some ugly truths



Contents:
"U.S. State Dept. urges U.S. citizens to leave Syria immediately"
"Russian president Medvedev says that Assad is 'in for a grim fate'"
"Hizbollah’s dilemma on Syria uprising"

### World View -- S&P downgrades U.S. debt
"Standard & Poors downgrades U.S. debt from AAA to AA+"
"S&P downgrade tops a chaotic day on the markets"
"Jobs report contains some ugly truths"
"Pouring water into a bucket with a hole in it"
"Turkey will not participate in US-Israel military drills"
"Lebanon and Israel disagree over offshore natural gas and oil rights"


Keys:
Generational Dynamics, Syria, travel warning, Bashar al-Assad,
Dmitry Medvedev, Hizbollah, Sayyed Hassan Nasrallah


Keys:
Generational Dynamics, Standard & Poors, debt rating,
jobs report, Luc Coene, ECB, Turkey, Israel, Lebanon

[vincecate]

I would warn my readers that the market is extremely dangerous right now, and that cash and Treasury bills are much safer than the stock market right now, despite the downgrade.

I agree that the stock market is extremely dangerous and that cash is safer, and also short term Treasuries.

However, long term treasuries have amazingly low interest rates, about the lowest since the dollar was partially unhooked from gold in 1933 and clearly the lowest since 1971 when it was all the way unhooked and money creation really got going. The low interest rates have been achieved by the Fed making lots of money and buying debt. This lots of money is sort of sloshing around in the system (companies, banks, etc) and making a really low velocity of money. But at some point interest rates will start going up and the velocity of money will start going up and prices will go up. The long term Treasuries will drop in value. Years from now people will say there was a government debt bubble that popped.

Ratings agencies downgrading US debt means it is probably soon. These guys don't usually act until it is too late.

My theory, for the last 2 years, is that when people stop rolling over treasuries, and just take their cash and go, that hyperinflation will start. The Fed will become the buyer of only resort. New money will be created for all the new debt and also for all the old debt coming due. So much of the debt is short term now that something like $7 trillion will come due in 12 months. So an out of control flood of money creation, which is hyperinflation. I think this still looks like what will happen.

http://pair.offshore.ai/38yearcycle/#hyperinflation