Default would be dire, Greek leader says

ATHEN — Greece’s prime minister, George Papandreou, said yesterday that he will continue with policies to drastically cut the country’s debt because the alternative — a default — would be catastrophic.

“We have taken a decision that no Greeks should live through the consequences of a default — and to change the country radically so that it . . . can stand on its own feet,’’ Papandreou told a newspaper. Never “did I imagine that we would need to slash pensions in order for the state to continue to pay any pensions at all,’’ he added.

An austerity program running through 2015 is designed to save $41 billion. It’s seen as essential in securing the fifth installment, worth $17 billion, of a $159 billion bailout by the European Union and International Monetary Fund. Greece hopes to secure a second bailout this month

BERNANKE, OBAMA SPEAK OUT AGAINST RECESSION RUMORS

Both President Obama and Federal Reserve chairman Ben Bernanke addressed fears of a double dip recession today, in speeches that were not related. Mr. Obama held a press conference after meeting with German Chancellor Angela Merkel. “I’m not worried about a double-dip recession,” he said. He said he is worried about the slow pace of job creation in the country.

Speaking at a different conference, Mr. Bernanke echoed the sentiments of the president. “Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he said. After the Fed chairman made his remarks, both metals and stocks lost ground that was gained early in the day. This situation brings back to mind a buzzword from 2009: Stagflation, which The American Heritage Dictionary defines as “characterized by sluggish economic growth and high inflation.”

In a sign that the world may be starting to recognize the inevitable fall of the Ghaddafi regime, China and Russia have held talks with rebel leaders. Both countries formerly abstained from voting on the U.N. resolution authorizing use of force against Libya’s military. It’s hard to fathom that the former ruler could come back to full power after NATO forces have made clear that their end-in-mind goal is to see the entire ruling family ousted.

At 4:06 pm (CT) the APMEX precious metals spot prices were:

•Gold - $1,546.00 (down $1.70 on the day)
•Silver - $37.25 (up $0.38)
•Platinum - $1,836.90 (up $14.70)
•Palladium - $811.20 (up $10.50)

by Robert Davis June 7, 2011

Australia Silver - Investment news and information

Australia Silver - Investment news and information

Eventual Replacement of the Debt Pegged Economic System

Isn’t it time we reconsider the current monetary system where our paper money value can only really be considered to be backed by debt. As absurd as this may sound every time a bank loan or mortgage is given, that money is created as debt.

Bill Still and Ron Paul propose two new systems that could see this financial system re-evaluated, as more and more citizens become aware of the limitations of the current system and learn that there may be a viable and beneficial alternative.

Ron Paul, (Part of the Austrian school of economics along with the likes of Peter Schiff) is a firm believer in a gold-backed monetary system and believes that if the dollar is pegged to gold (and Silver) it will only be able to expand as more gold (and Silver) is mined and minted. This would restrict the new money released into the system severely reducing any inflation concerns; however the ability for the economy to grow would diminish to a sustainable if not stifling rate of development.

Bill Still, author of the film prodctions The Money Masters and The Secret of OZ calls for a plentiful money system and a change to the bank requirement from 1:10 to a 1:1 entirely backed system. Also that money is born into the system as wealth rather than debt whilst never getting in debt to an IMF (World Bank type monetary body.)

The current Reserve requirement system tends to benefit purely the banking institution lending the debt whereas a money as wealth system would see an expansion in the monetary system as wealth as instead of retiring debt, the completion of a loan would result in more generated wealth which is beneficial to economies at large. This would offset what many see as a potential issue in the Gold Backed System.

Find out all about these alternate systems:

Bil Still

Ron Paul

Peter Schiff

By Joseph Gale