Bob Chapman The cost of carrying this debt becomes more unpayable and onerous

Bob Chapman on Discount Gold and Silver Trading Jan 28 2011

Bob Chapman : ....the state of anarchy in Egypt could go on for a while , if the circulation is disrupted in the Suez Canal the prices of oil and other commodities will shoot to the roof ....Jordan Yemen and even Saudi Arabia could be next in rioting against their respective dictators.....we could be looking at a $100 oil may be even $150....



Bob Chapman wrote in the International Forecaster of the January 29th, 2011 :"...The cost of carrying this debt becomes more unpayable and onerous daily and there is little attempt to stop it. The Fed may control the short end of the Treasury bond market, but it has minor influence on the 10-year notes and 30-year bonds. As a result yields have risen and the spread in yields between short and long-term paper has grown to 32-year highs. Needless to say, holders of long-term notes and bonds want to be better compensated because they see more risk, as US debt grows uncontrollably higher. Short-term yields have stayed about the same because the Fed controls them. The demand for capital in small and medium companies has been muted by lenders reluctance to lend for the past two years. Zero interest rates have not helped these potential borrowers that create 70% of the jobs. Funds though are readily available to the major transnational conglomerates. Government and the Fed won’t talk about it, but they are manipulating all markets, and that is a long-term negative factor because everything they do is for their own benefit – not for the people. The state of political affairs could be worse but they certainly are not good. We liken the US economy to a rudderless ship being pulled and jerked by one special interest group or another from side to side never gaining equilibrium. As long as this situation persists no headway will be made in solving budget deficits, nor in neutralizing the welfare state...."