Obama’s radical proposal for Puerto Rico’s debt (Here it comes, how California, other big government states will get bailed out by US taxpayers)

That’s not Uncle Sam’s money he’s giving away. He actually doesn’t have any money. That’s YOUR money.

Watch this. Many states with large union presences, with exorbitant pension obligations for state employees, don’t really see a way out of their situation without cutting pension payouts. No one will say it officially but the promises made many of these people by politicians (who were funded by state employee unions by the way) won’t be honored because they were BS from the very beginning.

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2008 Was a Crisis… It Was Not THE Crisis

Think of 2008 as a primer. A very difficult and disruptive primer. Nothing’s “fixed.” Markets never really cleared.

Additionally, as is explained below, the now 0% interest rates are almost locked there as the cost of serving US debt by the US government would explode upward with increased (and very likely closer to real market level) rates. That’s a sticky place to be to say the least.

But people will continue blissfully along, until they can’t.

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Dow 5,000? Yes, it could happen

Here’s a good dose of gloom for you. The author is not saying it will happen, but he is arguing that Dow 5000 is not completely crazy. Frankly I’d be for it. If we could carve out all of the central bank fluff created post-2008 and returned to a real live market such a crash would be worth it. (It might not be so great for all those baby boomers who have ridden the Fed induced rally right before retirement however.)

I wouldn’t say that a crash on this scale or a re-institution of real,

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(Watch out below!!!) Good Luck Finding a Place to Hide as Global Markets Crumble

We are beginning to see the Great Experiment, the post 2008 Crash experiment, disintegrate. A crack here. A crack there. A hairline fracture. A fissure. The underpinnings of printed money have always been unsound, but now the edifice appears to be unstable. Will a hard Greek gale bring the thing down, or will winds from somewhere else finally do this fiat superstructure in?

Guess we’ll find out soon enough.

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Ron Paul: Stock market ‘day of reckoning’ is near (VIDEO)

Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.

And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.

The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.

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Negative interest rates put world on course for biggest mass default in history

Call it the new abnormal.

Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.

Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.

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Multibillion Hedge Fund Manager: “Ultimately QE Will Fail; US And China Might Enter Recession At The Same Time”

They say “don’t fight the Fed.”

This has been especially true from an equities investment perspective since the Crash.

The question now though is how much fight is left in the Fed.

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Citi Economist: Abolish Cash (People should have to pay banks to use money)

The central banks don’t like that cash makes it hard to cut rates to below zero. 0% is pretty much as far as they can go (though there are exceptions such as in Denmark.) Boomberg reports;

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