Economic Collapse Occurring. Massive Muni Selloff, Dollar Tanking

The dominos are falling.

(Reuters) – U.S. municipal bond fund net outflows jumped to $1.472 billion in the week ended June 5 from net outflows of $156.86 million the week before, according to data released by Lipper on Thursday.

The four-week moving average turned negative, with net outflows in the week ended June 5 at $314.8 million, said Lipper, a unit of Thomson Reuters. The four-week average was positive a week earlier with net inflows of $58.7 million.

http://www.reuters.com/article/2013/06/06/lipper-muni-funds-idUSL1N0EI1ZC20130606

If cities and municipalities can’t borrow money, they will collapse. They are already borrowing to pay for what is already borrowed. Kind of like getting a credit card, to pay off the credit cards.

Pensions for retired govt employees is breaking the backs of cities, and the unions won’t budge.

The five Illinois pension systems are the worst-funded among U.S. states at about 43 percent, Bloomberg data show. The latest collapse of rescue efforts resulted from a standoff between House Speaker Michael Madigan and Senate President John Cullerton, Democrats who backed competing measures.

Madigan’s bill would have required retirees to accept diminished pension benefits, saving $187 billion over 30 years, he said. Cullerton called that approach unconstitutional and proposed a choice of pension or health-care reductions that would save an estimated $50 billion.

http://www.bloomberg.com/news/2013-06-04/illinois-losing-rally-as-state-fails-to-fix-pension-muni-credit.html

Even FDR, a Democrat and big government proponent, was staunchly against government unions.

Foreign investors are perfectly aware of the dilemna that the US is in, and are selling off their dollars, moving mostly into the Yen and Euros, most likely though offshore investing in what is called currency swaps using Eurodollars and Yendollars. These are called Financial Bets, and they are facilitated by the British crown owned Commonwealth offshore Islands (Caymans, Bahamas, Isle of Man, Cypress, etc.)

NEW YORK (MarketWatch) — The ICE dollar index DXY -0.01% , a measure of the U.S. currency against a basket of six major rivals, extended its drop Thursday as traders piled into the euro and Japanese yen

http://www.marketwatch.com/story/dollar-index-pummeled-as-euro-japanese-yen-jump-2013-06-06?link=MW_latest_news

SAN LUIS OBISPO, CA (MarketWatch) — New crash coming? When? Before year-end?

In “Stocks for the Long Run,” economist Jeremy Siegel researched all the “big market moves” between 1801 and 2001. Bottom line: 75% of the time, there is no rationale for “big moves.” No one can predict them. Maybe technicians and traders can pick short-term moves the next second. Maybe tomorrow. But the long-term “big market moves?” No way.

Getty Images

Traders work on the floor of the New York Stock Exchange on August 4, 2011 in New York. The Dow plunged 512.76 points.

So why predict an “87%” chance of another meltdown in 2013? Because in the real world of statistical probabilities, historical facts and expert opinions danger signals are flashing wild.

http://www.marketwatch.com/story/doomsday-poll-87-risk-of-stock-crash-by-year-end-2013-06-05?Link=obnetwork

 

So there you have it folks. Combine this with all of the scandals going on, recent spying revelations, and a govt bordering on fascism, and

we are in for some scary times ahead…