http://SafestHaven.com/index.htmlEconomic Armageddon: A Survival GuideenSafestHaven.comCopyright 2011 SafestHaven.com2012-03-16T11:08:19-04:00 hourly 1 2000-01-01T12:00+00:00 Fri, 16 Mar 2012 11:28:50 -0400SafestHaven.comEconomyInflationBanks2012-03-16T11:08:19-04:00http://SafestHaven.com/blog/files/eaf65ccfc0baa7a76f09c5cb39f19229-1.html#unique-entry-id-1http://SafestHaven.com/blog/files/eaf65ccfc0baa7a76f09c5cb39f19229-1.html#unique-entry-id-1
However, the criteria with which the Fed stress-tested the banks is not even close to what the worst-case scenario could be.

The Fed listed the criteria used as “a severe recession in the United States, including a peak unemployment rate of 13 percent, a 50 percent drop in equity prices, and a 21 percent decline in housing prices. “

After TRIPLING the money supply in the past 2 years, the expectation is for inflation to increase dramatically. Although the Fed, and Ben Bernanke in particular, is in denial about inflation (see Bernanke In Denial About Inflation) the cause and effect relationship between tripling the money supply and inflation is inescapable.

The government reports unemployment currently at 8.3%, but even a cursory examination of how they arrive at the number belies the truth. Real unemployment is already over 17%. Even if you don’t include those that have given up working, or are underemployed, the only way to come to 8.3% unemployment is to fudge the numbers, as they’ve done.

But let’s take the Fed’s ‘worst-case scenario’ criteria as what could be reality for sake of argument.

Based on that criteria, 4 of the U.S. major banks FAILED the stress test, including Citibank!


]]>SafestHaven.comInvesting | Economy | Inflation | Stock Market2011-11-15T14:54:04-05:00http://SafestHaven.com/blog/files/economic_armageddon_survival_guide.html#unique-entry-id-0http://SafestHaven.com/blog/files/economic_armageddon_survival_guide.html#unique-entry-id-0Economic Armageddon: A Survival Guide”
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