From Bank of America’s head of global technical strategy warning that the U.S. dollar is in serious trouble, to Capitol One’s unprecedented policy change where they will now show up at Credit Card users homes to collect on debts, it seems even the big banks are going into panic mode.
In spite of all the government media propaganda, the warning signs are getting harder and harder to ignore. The fact is, our economy has teetered on the edge of the financial abyss for quite some time; and with the government now racking up over $1 trillion dollars a year in debt, it’s only a matter of time before the house of cards comes crashing down.
U.S. about to hit the Debt Ceiling Yet Again…
We are now only a couple of weeks away from another possible government default, as Treasury Secretary Jack Lew warns the government will run out of money to pay the nation’s bills, unless congress yet again raises the federal debt limit.
As part of the so-called budget deal that reopened the government last October, Congress suspended the $16.7-trillion debt limit through Feb. 7, 2014. With that deadline now passed, we’re now only weeks away from another possible default, causing some to wonder how much more this economy can take. In fact, former Harvard Economist Terry Burnham is so worried that he pulled all of his money out of Bank of America, and started warning everyone that they might want to consider doing the same.
Bank of America Warning the U.S. Dollar is in Trouble
Earlier this week, MacNeil Curry, Bank of America’s head of global technical strategy warned the U.S. Dollar was in serious trouble. Curry says, global financial and commodity markets are warning that the US Dollar is in for a bout of trouble.
Curry points out that Gold was the first to make its low against the US Dollar, doing so back on Dec-15. The second market to turn against the US Dollar was US Treasuries, with Ten year note futures turning bullish back on Dec-26.
Capitol One says they have Right to Show up at Credit Card Users Homes
If you have a Capitol One Credit card you might want to take a look at your contract, because recent changes in the company’s policy mean they can literally drop by your home anytime they want.
According to the LA Times, Capitol One has updated their contracts so they can contact its customers “in any manner we choose,” including via phone, text, email, fax or even a “personal visit.” The really creepy part of the policy change is these visits can be “at your home and at your place of employment.”
In my opinion, these types of policies are a direct response to the very real trouble our economy is in. These banks know they’re in trouble, and I think they are operating in crisis mode.
I believe we are very close to reaching a level of deficit spending and debt at which the rest of the world starts to lose faith in the dollar, and starts to pull their investments. At a certain point, the $1 trillion dollars a year in debt our government is racking up is going to cause that loss of confidence, and when that happens it’s pretty much game over.