Skip to comments.Game of Thrones: Gold, Germany, France, Taxes and the Debt Ceiling
Posted on 01/15/2013 8:53:48 AM PST by whitedog57
With Washington DC alight with the buzz of the approaching debt ceiling, Germany wants its gold back from the NY Fed and other central banks. Here is a country-by-country list of country gold reserves. (I hope the Germans find more gold in the New York Fed than we would find in Ft. Knox!)
Of course, Germany looks at the USA and wonders how we can borrow SO much money and generate SO little economic growth. 113% increase in Federal Debt held by public since Q2 2008 and a measly 2.57% growth in real GDP.
This comes at a time when expected real GDP in the US is expected to print at 1.5% in Q1 2013.
And Wages and Salaries as a percentage of GDP continue to decline.
And you can see why. The Empire State Manufacturing Survey General Business Conditions (SA) for January declined to -7.78 indicating contraction.
The USAs trading partners, Germany, France and Spain, are all showing real GDP slowdown or contraction.
Do I detect a trend? Even worse, France and the USA are on a tax the rich crusade that ignores the out of control spending and debt that is the actual source of the problem. Better known as fiscal drag.
World bond markets are showing declining yields (central banks riding to the rescue).
Global commodities are showing a pop in precious metals (gold, silver, platinum). But aluminum and copper are down rather dramatically.
All in, this is less than welcome news. Particularly since governments and the central banks seem to be engaged in a Game of Thrones.
And the Federal debt keeps roaring upwards! And dont look at the M2 Money Supply or Federal Reserve Monetary base. You may go blind!
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