Two years after August 2011, US debt reached its limit - a new law has to be passed.

Treasury's Lew: Congress Needs to Pass Debt Limit

Two years ago in July 2011, this was the hot topic of US professors (many of them Fil Ams) regarding the debt limit.  A new law has to be passed to allow the US treasury to borrow more to pay:  wages of Fed employees, social welfare checks,  the food stamps, and interest on T Notes and other borrowings.  Without the new authority to borrow, US would default and the US debt would be downgraded and borrowing costs would shoot up sending the US/Treasury into a vicious upward spiral of spiking costs.

The stalemate and the last minute passage of the law was completed just in time when US had no money its treasury  (Apple had 80 billion dollars at that time and some were suggesting to borrow from Apple).  It cost US a downgrade.

Of course, China and the rest of the world finances the US deficit.

What is interesting in the world trade is the flow of capital.   US would continue to attract more capital inflows to finance its debt because the world continues to see US as safe haven for investment and as center for entrepreneurship -  of innovation and new products.  No country comes close.  That is why even with predictions of coming hyper inflation due to large dollars in the financial market, the forthcoming dumping of US dollars in world trade, US dollar is still the currency of choice in world trade and as reserve of Central Banks. Would Euro be the better currency?

How about the undervalued Chinese yuan?  (There are fears that China may bring hyperinflation and/or deflation to the world.   Right now, the Chinese economy is sputtering and may come to a halt

What is the alternative currency?

But many Chinese I talked to believe, despite their country's huge exposure in US T notes/currency,  believe US cant rise from its current sinkhole.

Can US or cant it?  What do you think?

Fwd: Jim Rogers: ‘Terribly Flawed’ Dollar Isn't a Safe Haven

                  


 Jim Rogers holds on to the Dollar despite its Flaws

Jim Rogers, the Chairman of Rogers Holding, says he is still holding on to the dollar for a year or two, simply because everybody is running to it (despite its very bad condition  -  its value has gone done, the US debt is insurmountable, huge US deficit, China is dumping US dollar).  The Euro last week was dragged down to its lowest rate of $l.236 due to the Greece concern ( and even  Spain)

As with regards to Eurozone:

 



Spain, Italy, Belgium, Portugal and even France problems

He thinks the politicians in Europe are in denial.

He believes it is best for Europe to go bankrupt and start all over again.  Then they will understand austerity and belt tightening rather than imposing that from the lender side.

On bail outs?  That will be temporary.  At some point in time, the credit will be declined.

Fwd: How Low Can Facebook - and the Euro - Go?

     

                          







                  

This is a Wall St Daily feed. Louis Basenese just says two things:

l.  Its all bad news for the week end.

2.  The Euro is being beaten at $1.263@, its lowest.  It is supposed to replace US dollar as intl trading currency. What happened here?   The FB stock price is going lower.  He thrashed FB before its IPO and suggested other IPO which were more promising. More  "I told you so...."

Do you agree with his remark that from a business standpoint, FB is just a large advertising agency?

---------- Forwarded message ----------
From: Wall Street Daily <wallstreetdaily@wallstreetdaily.com>
Date: Fri, Jun 1, 2012 at 6:06 PM
Subject: How Low Can Facebook - and the Euro - Go

How Low Can Facebook - and the Euro - Go? By Louis Basenese, Chief Investment Strategist For most people, Friday's just the day before the weekend. But in the Wall Street Daily Nation, it's the day we ditch the longwinded analysis and let some graphics talk for us. After all, a picture is supposed to be worth a thousand words, right? This week, we're serving up a Limbo edition, profiling the increasing ability of both the euro and Facebook's (Nasdaq: FB) newborn stock to keep heading lower and lower. I'm also sharing (gasp) disappointing real estate data. Is it time for me to eat crow for predicting the real estate market hit rock bottom? Hardly. Read on to find out why... How Low Can the Euro Go? The eurozone's falling apart. And the value of the euro keeps slip, slip, sliding away. Push Your Broker's "Hot Button" With Just $50 We're revealing a secret that's going to drive your broker nuts. It'll even miff your broker's boss. It's an unusual opportunity that the Wall Street elite don't want to share. Well, it's too late now to cry now, fellas... We've come up with a way for you to exploit profits to the max. If you have just $50, you may be able to turn it into windfall profits. Imagine making a string of tiny investments and watching it grow into extraordinary wealth. After today, you may not need to imagine it any longer. On Thursday, the beleaguered currency hit a fresh two-year low versus the U.S. dollar at $1.2368. Yes, folks, this is the currency that's supposed to replace the U.S. dollar as the reserve currency of the world. Or not! What's the next stop for the euro? Nobody knows for sure. But I'll bet you its lower. Only a few more pennies and we take out the lows hit in 2010. Bottom line: Currencies are a relative game. And right now the U.S. dollar is looking mighty again, even if it's not on its own merits. But I'll take it. How Low Can Facebook Go? Before it was popular, I was trashing Facebook's IPO. And guess what? The sweet taste of vindication keeps getting sweeter with every tick lower for the social networking giant. Of course, the blame game is in full effect on Wall Street and Main Street. Forget about wasting time pointing fingers, though. Let's instead put a finger on what the Wall Street Daily Nation thinks is the Facebook's next resting point. $20... $15... $10? Send us an email with your bold predictions to feedback@wallstreetdaily.com. Bottom line: Facebook is nothing more than an advertising company. And a bad one at that, based on General Motors' (NYSE: GM) recent decision to stop paying for Facebook ads. Prepare for even lower prices still. Eat Crow? Never! Unlike many stubborn analysts, I have no problem admitting when I'm wrong. A boatload of readers wants me to do just that when it comes to my February prediction that the real estate market hit rock bottom. Especially after Wednesday's pending home sales report. The National Association of Realtors revealed its Pending Homes Sales Index (PHSI) dropped 5.5% on a seasonally adjusted basis in April. So clearly the market can't be recovering, according to the diehard real estate bears. Silly rabbits! Trix are for kids. And recoveries are always uneven. So let's not mistake a little lumpiness in the data as a full-blown reversal. Fact is, the PHSI is up 14.4% year-over-year. And other real estate stats are improving year-over-year, as well. Like foreclosures. On Wednesday, CoreLogic reported that there were 66,000 completed foreclosures in April, a 15.3% drop from April 2011. Bottom line: As I said last week - and the chart above reveals - the real estate data keeps "moving from bad to less bad, which is a clear sign of a market bottom." So there will be no eating crow here, thank you very much. That's it for today. Before you sign off, do us a favor. Let us know what you think about this weekly column - or any of our recent work at Wall Street Daily - by sending an email to feedback@wallstreetdaily.com, leaving a comment on our website, or catching us on Facebook or Google+. Ahead of the tape, Louis Basenese $1,050 is Up for Grabs Right Now... For more than three years now, former market trader, Lee Lowell, has been showing our readers opportunities to collect money from the market - instantly - by punching in certain codes he finds. It's money you can spend as you please because you never have to give it back. Right now, in fact, Lee's latest codes are paying out in the neighborhood of $1,050 - on top of the more than $37,000 our readers could have already collected using this little-known technique.

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German Finance Minister is Confident that Eurozone will Stabilize in 2012

An Ateneo Graduate School of Business Advantage

German minister is confident Eurozone will stabilize in 2012!

These are words of hope in the season of Joy of Christmas.  Is is spoken out optimism probably knowing that the Euro and the debt instruments  and capital markets of the Europe and the world have been battered by:   ballooning debts and deficit, and unstable pronouncements from politicians.  Couple that with the lack of probable white knight in case of disaster;   who will help from Europe?   Germany, France, UK.  Look at the staggering debt of Italy alone:  $2+ trillion?  What about Greece and other shaky economies.Their bail out funds would hardly reach half trillion.  It is indeed worrisome

Will China help?

Will Japan and USA help?

Who will help Europe?

But we Christians are imbued with Hope.  We hope for a better 2012 in Europe

Here is the link to the Hopeful article:

german-minister-will-stabilize-eurozone-in-2012/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+cbsnews%2Ffeed+%28CBSNews.com%29