Commercial Mortgage Default Rate in U.S. More Than Doubles

http://www.bloomberg.com/apps/news?pid=20601103&sid=aj9Yttz_UYxg

Feb. 24

By Dan Levy and David Henry

The default rate for commercial property mortgages held by U.S. banks more than doubled in the fourth quarter and may reach a peak of 5.4 percent at the end of next year, according to Real Capital Analytics Inc. The default rate for loans on office, retail, hotel and industrial properties surged to 3.8 percent from 1.6 percent a year earlier, the New York-based real estate research firm said yesterday in a report. The default rate for loans on apartment buildings climbed to 4.4 percent from 1.8 percent.

US senator warns of ‘financial meltdown’ risk

http://www.ft.com/cms/s/0/d618a9a4-225b-11df-a93d-00144feab49a.html?nclick_check=1

February 25 2010
By Edward Luce

The US is heading for a debt-driven “financial meltdown” within five to seven years, according to Judd Gregg, the outgoing Republican senator for New Hampshire. In a robust and at times testy video interview for the Financial Times’s View from DC series, Mr Gregg also complimented China for showing rising alarm about the US’s mounting levels of public debt. “We have had China say that they are looking for other places to put their reserves and that is probably a smart decision on their part,” said Mr Gregg, who will not seek re-election in November. “So the warning signs are pretty clear and the path is unsustainable and, at this point, unless we take different actions, unavoidable.”

Lets talk taxes folks.

http://www.gcstation.net/liefreezone/


I first came across this story a couple of years ago, please take the time to gander over the information shared there.

His theory is correct as far as i can see, lets start with the 16th amendment.

this story is a good look at one part of it.


LISTEN TO THE BRILLIANCE OF ATTORNEY JEFFREY DICKSTEIN BEFORE THE 7TH CIRCUIT COURT OF APPEALS, IN U.S. v BENSON. PASS IT ON!30 minutes of fascinating audio, click here to listen.

http://www.thelawthatneverwas.com/new/7th_circuit.mp3




this is straight up awesome listening, great learning.

will post more later.

The Only Outcome

Alot of people ask me, do you really believe the dollar will collapse and civil unrest will run rampant? The answer of course is ABSOLUTELY the dollar will collapse!! This is the only outcome possible anymore, and here is a couple of reasons why....

1. In our economic system, money IS debt. Meaning the only way you can pay off your debt is if someone else takes on debt.

2. Fiat currency's have always collapsed, due to greed of the politician's and the printing press(or devaluing of the currency)

3. Our debt is so large the only way we could begin to try and pay it is if we inflate it away.


4. But the biggest reason is because there is not enough money in existence, be it paper FRN's or gold. The interest never gets printed, just the principal.


With our national debt at 12 trillion and our yearly debt to gdp at about 10% which is historically low, your thinking wtf right?

You would be wrong, total debt is anywhere between 50-70 trillion dollars.

US debt clock has it at 54 trillion right now, but i have heard estimates of up to 70 trillion, but we don't have hard figures on this as the fed does not allow outside audits of it's books.

http://www.usdebtclock.org/


Now when the boomers start to retire, how do you think we are going to pay for that? Social security is already running in the red.

http://www.pbs.org/nbr/site/onair/transcripts/social_security_100217/
GERSH: That's the
Heritage Foundation's David John. The administration's latest figures show
Social Security will pay out $34 billion more this year than it takes in from
tax revenues. John says that cash deficit is a warning Social Security is not
sustainable.

JOHN: This is just saying flatly, look, this is real. It's
happening. It's happening now.

The fed is buying up most of debt and worse yet, hiding it in the balance sheets as household buying.

Now get this, household bought 15 billion worth of us debt in 2008, but in 2009 household bought 700+ billion worth of debt.

Who believes this crap?

We must admit that we were surprised to discover that "Households" had bought so
many Treasuries in 2009.

They bought 35 times more government debt than
they did in 2008. Given the financial condition of the average household in
2009, this makes little sense to us.

With unemployment and foreclosures
skyrocketing, who could afford to increase treasury investments to such a large
degree?

For our more discerning readers, this enormous "Household"
investment was made outside of Money Market Funds, Mutual Funds, ETF's, Life Insurance
Companies, Pension and Retirement funds and Closed-EndFunds, which are all
separate reporting categories.

This leaves a very important question-
who makes up this Household Sector? Amazingly, we discovered that the Household
Sector is actually just a catch-all category.

It represents the buyers
left over who can't be slotted into the other group headings. Formost categories of
financial assets and liabilities, the values for the Household Sector are
calculated as residuals. That is, amounts held or owed by the other sectors are
subtracted from known totals, and the remainders are assumed to be the amounts
held or owed by the Household Sector.

To quote directly from the Flow of
Funds Guide, "For example, the amounts of Treasury securities held by all other
sectors, obtained from asset data reported by the companies or institutions
themselves, are subtracted from total Treasury securities outstanding, obtained
from the Monthly Treasury Statement of Receipts and Outlays of the United States
Government and the balance is assigned to the household sector." (Emphasis ours)

So to answer the question - who is the Household Sector? They are a
PHANTOM. They don't exist. They merely serve to balance the ledger in the
Federal Reserve's
Flow of Funds report.


http://www.docudharma.com/diary/18162/imploding-households-rescue-treasury-debt

Listen right now folks, you need to do everything you can now to get out of the dollar. Trade them for long term storable food, seeds,weapons,ammo,generators,water filters,etc.

whenshtf.com is a great source to help you get started, also i will be posting stuff i like on here for you readers.

Do not wait, China is not only buying less debt, but is selling some of the stuff it already holds.

China sold $34bn (£21.5bn) worth of US government bonds in December, raising
fears that ­Beijing is using its financial ­muscle to signal that it has
lost confidence in American economic policy.

http://www.guardian.co.uk/business/2010/feb/17/china-sells-us-treasury-bonds

Get out of the dollar now, while you can. If you have alot of money to protect and your already set up with everything you need for your family to survive for 6 months to a year at least, then i would suggest gold and silver coins.

Please do not wait till this happens and it will be to late for you and your family. This is going to happen, if you believe it or not does not matter. So prepare and survive, or dont and more then likely die.

But remember if you have failed to prepare, do not look to people that have prepared and expect them to take care of you, only hard times lead down that path friends.

If i'm wrong, you get to laugh at me. If your wrong, your dead.

You see with your own eyes what i'm saying is true, override the sheep switch put into your brain by the msm and the government propaganda.

Be ready brothers and sisters, the time is not far out.

Tracy Residents Now Have To Pay For 911 Calls

TRACY, Calif. (CBS13) ―Tracy residents will now have to pay every time they call 9-1-1 for a medical emergency.But there are a couple of options. Residents can pay a $48 voluntary fee for the year which allows them to call 9-1-1 as many times as necessary.

Or, there's the option of not signing up for the annual fee. Instead, they will be charged $300 if they make a call for help."A $300 fee and you don't even want to be thinking about that when somebody is in need of assistance," said Tracy resident Greg Bidlack.Residents will soon receive the form in the mail where they'll be able to make their selection. No date has been set for when the charges will go into effect.

http://cbs13.com/local/tracy.911.calls.2.1502690.html

Citigroup Warns Customers It May Refuse To Allow Withdrawals

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change," Citigroup said on statements received by customers all over the country.


http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2


update: it's being said that this only applys to texas customers, i guess we will see right?

SOVEREIGN ALCHEMY WILL FAIL

As the Austrian economist von Mises said: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency involved.”


http://matterhornassetmanagement.com/2010/02/11/sovereign-alchemy-will-fail/


The problem is not just the current debt levels of these nations, because the deficits in all the countries are rising. Tax revenues are collapsing and with rapidly rising unemployment, the governments’ expenses for social charges are soaring.

In the US for example the federal deficit in 2009 was $1.5 trillion (10.7% of GDP) and is forecast to stay around that level for many years. The plight of the US states is just as bad. Out of 50 states only 4 are expected to have a balanced budget in 2010. Up to 40 states, including California, New York, Florida, Illinois, Michigan, Ohio, North Carolina and New Jersey, are virtually bankrupt.

It took almost 200 years for US Federal debt to reach $ 1 trillion which it did in 1981. In 2009 the debt increased by $ 1.9 trillion in just that year to $ 12.4 trillion. In the next ten years the US debt is forecast to reach $ 25 trillion. And this doubling of the debt does not include any funds to prop up a bankrupt financial system or the spending of tens or maybe hundreds of trillions of dollars on worthless OTC derivatives.

The forecast also assumes growth in GDP which is extremely unlikely especially for the next 2-5 years. Currently US Federal debt is six times what it collects in tax revenue every year. With debt exploding and tax revenues collapsing, there is no chance that the debt can ever be repaid with normal money. Also, with debt out of control interest rates will rise substantially to 10-20% per annum. Applying a 15% interest rate to a $ 25 trillion debt would give an annual interest bill of $ 3.75 trillion which would be substantially more than tax revenues.

The chart below shows the US Federal Debt per person. In the last ten years it has gone from $ 20,000 to $ 40,000. Total US debt, including private and corporate debt as well as unfunded liabilities, comes to $430,000 per individual. It is an absolute certainty that every man, woman and child in the US cannot pay off almost half a million dollars with normal money. Only massive money printing will take care of that.