Adjustable-Rate Nation

Tuesday, December 1, 2009, 12:57 PM

A new Martenson Report is ready for enrolled members.

LinkAdjustable-Rate Nation

  • US government borrowing has tilted heavily to short-term, adjustable-rate issues.
  • The very same people who missed the housing crisis have largely ignored or overlooked the current US predicament.
  • The US government lacks any sort of fiscal restraint.  And there's never a good time to cut back.
  • It has been operating like a subprime, cash-poor borrower, electing to borrow more and more.
  • The short-term debt used to finance the Treasury Department must be "rolled over" when it comes due, imposing whatever the new interest rate happens to be at that time. 
  • This will trigger a debt spiral, which will cause the US government to go from being insolvent (its current predicament) to bankruptcy (its future condition).
  • A bankrupt nation has few options, little hope, and a lot of regrets. 
  • To protect against the fallout, buy gold, silver, and productive assets that generate the things people need.

This is no way to run a nation.

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pinecarr's picture
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2266
Re: Adjustable-Rate Nation

Chris. have you thought at all about making this report available to the public, e.g., on  It is a strong, cut-to-the-heart-of-where-we're-at, based on facts, report, the kind that makes your material a must-read for me.  

The reason I bring this up is because I think you could get a lot of good PR from the report, and that it could attract new readers/subscribers to your site.  In addition, I think there a lot of people out there who would benefit from your clarity of insight into "what's really going on".  Just a thought.

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
Re: Adjustable-Rate Nation


That's a great idea, but I'll see that bet and raise you one better! Chris hasn't been interviewed on FinancialSense for quite a few months and a lot has happened since his last interview. I get the sense that Jim is just putting together his early 2010 guest lineup now.

I agree with you that Chris would be well served to post this MR on FinancialSense University as a free post for the sake of both helping the world and drawing more traffic to this site. But I think we should also organize a few loyalists to make strategic calls to the Q-line both talking up this report and asking for a repeat interview with Chris. Last time they got a few listener calls asking for an interview with Chris, the contacted him a couple weeks later and invited him onto the show...



machinehead's picture
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Adjustable-Rate Nation

Being dependent on short-term financing is a bad idea. But it's a particularly bad idea when you're insolvent to the tune of a hundred trillion or so.

The cockeyed captains at the helm of this listing ship assume that 'sovereign powers' will propel them by brute force through the rough seas ahead. But history is richly furnished with instances of sovereign defaults. In fact, they happen every few years.

And almost invariably, those defaults start with a short-term liquidity crisis. Since weekly T-bill auctions are conducted on Mondays, I can safely predict another 'Black Monday' in our future. If I were Timmy G., I'd adopt a 4-day, Tuesday-Friday work week. Then when the crack-up comes, Timmy can truthfully answer, 'I wasn't even there.'

This evasion will buy time for Timmy to hop on the helicopter with Benny Bubbles on the roof of the Eccles Building, for their exile to Paraguay. Ay yi yi yi ... yo soy el T-bill BANDITO!

pinecarr's picture
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2266
Re: Adjustable-Rate Nation

Hi Erik-

   I'm not familiar with FinancialSense's Q-line, but that sounds like a good idea; I'll check it out!


Kaputo1's picture
Status: Member (Offline)
Joined: Nov 17 2009
Posts: 1
Re: Adjustable-Rate Nation



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