The Finger in the Dike

Greece is unable to get its arms around its debt which is 195% of GDP, including government, public, and corporate. The government debt which is 115.1% of GDP has been downgraded to junk status, which adds impetus to the downward spiral. This country is part of a currency union and cannot print money like the U.S. can to inflate the currency. It can only default by not paying on its bonds, where the U.S. can default through inflation.

Portugal is now on the radar of public discussion with its debt 236% of GDP. Spain, Ireland, and Italy are behind them. As we look at these European countries, we can see that collectively they are in the same boat and the only way to stay afloat is for the creditors to accept a loss on their investments in these countries i.e. mainly the banks.

We saw what still continues from the aftermath of the housing bubble. Foreclosures are still healthy and prospering. Fannie and Freddie, the two government mortgage firms are now offering to help homeowners to do a 'short sale' or 'deed-in-lieu-of foreclosure.' In other words, by continuing to modify the mortgages and have these incur over a 50% default rate, the government has figured out that it's a waste of time and money to continue in this manner. Helping the homeowner in these other two ways saves money for the banks than going the foreclosure route.

Now being discussed, and I agree, the next bubble that is well underway is the 'government debt bubble.' We can see it easily by looking to Europe. Yet it is right under our nose here too. The ripple effect from Europe, once it gains momentum, will be a catalyst for us to act sooner rather than later in stopping our deficit spending. The longer we wait to act, the bigger the immediate impact on all of us.

The Banks. Where is the Justice?

My wondering has been laid to rest as to whether the federal government planned to act to hold the banks accountable, other than shutting some down weekly on Fridays; last Friday 8, bring the total to 50.

The timing of the Goldman Sachs suit does make me wonder. Bank reform is critical so I am behind the president on this. Yet in my opinion to go after this bank at this time was planned with the idea of using it to push through reform. There is something distasteful about this action because of the timing.

There is no doubt in my mind that what Goldman Sachs did, the other big ones have done the same. It does anger me to see how they put these mortgages in groups together, sold them to unsuspecting investors, and then bet the opposite of what they told the investors. There was a conscious knowing of intention to inflict harm. This goes way beyond 'greed.'

I recently read where JPM Chase has borrowed billions of dollars at a negative interest rate. via the Federal Reserve/Treasury and made around 4%. The federal government is not 'walking their talk.'

These banks are in a league of their own and what Thomas Jefferson warned us about hundreds of years ago, that I have sent via this blog a few times, is playing out in front of our eyes. I think the way to make a difference individually is to continue to give our representatives feedback, and trust that the justice system will prevail. I look forward to Goldman Sachs being challenged in court from all corners of the world where they intentionally defrauded the investors by using their trusted name. I look forward to other banks receiving the same treatment. If they are not, then the administration used Goldman Sachs for political purposes only. Without justice we do not have a government of the people. Don't ever give up. We do make a difference. I appreciate anyone who would like to comment.

Another World, Signposts to watch

Another world has been discovered 3.1 miles below the ocean in the Caribbean's Cayman Trough. The deepest volcanic vents were seen for the first time. Imagine mountain ranges like the Cascades, Sierra Nevada, Rockies, covered by the ocean depths. Volcanic activity line these ranges that surround the planet, like the Pacific 'ring of fire'. Our technology allows us to explore the depths to see what was unseen before.

The manmade Large Hadron Collider produced record-breaking high-energy particle collisions by smashing beams of protons together. Imagine this is at the sub-atomic level. The goal is to gain insights into how the universe was created.

In the last few months, we have heard about natural disasters that haven't occurred in '200 years'. Examples include the earthquakes in Haiti and Chile. We live during a time that the Earth has her own circular patterns, like we do on an individual and collective level. We call it disasters yet this is normal for her. Our life spans are too short to personally connect her previous cycles.

Iran appears to be the catalyst to start another world war given its pursuit of nuclear prominence.

These are a few of the signposts that I am noting to gain a bigger picture of what the message is for man who is locked into this 3 dimensional plane. Looking at the Earth, Mother Nature, and ourselves can provide clues that seem unrelated, yet are pieces of a gigantic puzzle coming together. All life follows the pattern of creating, preserving, and destroying. We are in the destroying phase at this time in the history of the Earth. She appears to be aligned with us in reflecting what we are well on the path of accomplishing...........

The Meaning of the Word Trillion

Trillion is a word that is mentioned more now in our lifetime than at any other time. I wonder if there is any one individual who can imagine the significance and value of that number that has twelve (12) zeroes. It stands separate from any reference point in its own league. I think that when a number becomes this large, it loses its significance and therefore can grow at will with a momentum of its own. Also, it will reach the 'law of diminishing returns', most likely before anyone realizes it.

Imagine that this country is incurring and is forecasting to keep incurring at least $1 Trillion in debt yearly. The projected timeframe is 10 years. I don't think a timeframe can be applied because of what I explained in the first paragraph. If grasping the meaning of $1 Trillion is challenging, understanding numbers larger than that is beyond cognizance.

How do you feel when you read numbers in the neighborhood of $50 Trillion that makes up Medicare and Social Security that are unfunded? Do you think we have reached the pivotal point yet or passed it? I'm referring to the pendulum of life that swings back and forth in cycles, like day and night. It occurs at the individual, societal, country, and world levels. Both sides are necessary in order to differentiate between the two. I'm wondering what that experience will be to quantify the word 'trillion.'

This is an exciting time to be present. Hold the world in your hands, not on your shoulders, to see a perspective that allows more of an open mind.