by Russell D. Longcore
(Editor’s Note: Yesterday an earthquake of 8.9 on the Richter scale rocked Japan, with a 6.5 aftershock and tsunami waves following that scoured the coastlines. Japan is the third largest economy in the world, and their public debt is three times the size of their annual economic output. Japan’s economy has been in a recession for 20 years! Japan’s government holds $877 billion in US Treasuries, second only to China. And consider what effect this catastrophe will have on worldwide insurance companies as earthquake claims are paid. Insurance companies hold US debt too. I guarantee that some insurance companies will go bankrupt because of this earthquake. And companies that default are forced to sell off their assets.
Could this earthquake…the worst to hit Japan in 140 years, collapse the Japanese economy? And, if Japan’s economy falters, will Japan sell off portions or all of its US debt? It certainly could happen. Stay tuned.)
Anybody out there remember reading any of my articles in which I predicted that the worldwide rejection of US Treasury securities could trigger the collapse of the dollar?
Well, this news story from Thursday is a MAJOR step toward seeing that prediction come true. PIMCO is the world’s largest bond fund. They have just divested themselves of ALL United States Treasury debt instruments. Bill Gross, who runs the fund, urged investors to get out of US debt and get into the debt securities of emerging nations.
Friends…How are you doing on your survival supplies and your efforts to change US dollars into gold and silver coins? You may need them sooner than you think.
Secession is the Hope For Mankind. Who will be first?
DumpDC. Six Letters That Can Change History.
© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.