Every American owes $2,666 more now than on Friday
for The Q Wealth Report
The US Congress met in a rare weekend session to pass what The Daily Telegraph of London calls “the most far-reaching rescue package for America’s financial system since Franklin Roosevelt’s New Deal.”
The ceiling on the US national debt has been lifted by a further $800 billion, giving the Treasury almost unlimited resources to prop up the world’s two biggest financial institutions: Fannie Mae and Freddie Mac. That amounts to about $2,666 for every US citizen.
Now when the world’s two biggest financial institutions are in trouble, you know that does not bode well for the global financial system. Commentator Ambrose Evans-Pritchard in The Daily Telegraph article went as far as to say, “This raises implicit concerns about the credit worthiness of the United States itself.”
A statement from French banking giant BNP Paribas says: “The epicentre of the financial market sell-off will switch from the US into Europe and Oceania. Most of Euroland has entered a recession. A synchronised global downturn is on the agenda.”
Catherine Austin Fitts of Solari Inc, Former Assistant Secretary of Housing in the Bush I government, wrote a letter to the Wall Street Journal saying that “creating a private company free to use federal credit to buy Congress and drain communities, pension funds and global investors is a bad idea indeed. However, it is not as bad an idea as bailing it out after it has finished making such a mess.”
So, things don’t exactly look good. But there are always ways for smart investors to generate wealth in turbulent times. That’s what my articles in The Q Wealth Report will be focusing on for the duration of the global crisis. For example, gold will go up! If you are interested in learning more about investments that are not exposed to the global financial crisis, sign up today for The Q Wealth Report.
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