John Rubino: The Global Economic System Is Set To Go Up In Flames

from The Daily Coin:

With interest rate at this level, at any other time in American history we would have had a raging homebuying mania right now…We’re [the Government] what we can to increase speculation out there and that would never be a good thing.  – John Rubino, Shadow of Truth

As Hemingway famously remarked in reference to how one goes bankrupt:  “Two ways, gradually and suddenly” (“The Sun Also Rises”).   The U.S. Government, absent the power of an unfettered money printing press, is technically insolvent.   Based on the latest TIC (Treasury International Capital) report, foreigners dumped $55 billion in U.S. Treasury holdings in January (there’s a two-month lag in the data).  It was the second largest monthly outflow of foreign capital from Treasuries since late 2008.

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