I’ve run out of track. There aren’t that many philosophical issues to explore right now. I’m bearing an urge to make my heart ready for some big changes.
We’re just waiting to see what happens next. It’s not exactly news, but a really fine analysis of the impending FDIC quarterly report indicates things are worse than I had thought. Here’s my executive summary. The FDIC is insolvent, and can only remain active by tapping it’s line of credit from the Treasury. But the Treasury is also deep in the hole. The previous FDIC report of 300 weak banks was optimistic; try some 2000 (out of 8400 member banks). Precious few banks are even showing a profit so far this year. Most of those showing a profit are the beneficiary of TARP funds, and many others are simply lying. Some are showing a profit from gambling in the stock market, something which offers zero protection should the investment fail.
We may very well see the regime finesse this and nobody will panic. At least not from that. There are plenty of other things which could bring martial law down on the nation. I still believe the regime is doing all they can to provoke an armed response, seeking any plausible excuse to impose martial law. Until then, lots of other bad things can still happen. In the background the currency is being inflated so fast, we can hardly track it. I can’t remember where I saw it, but someone said the government is spending $1.85 for every $1.00 that comes into the Treasury.
It could take weeks yet before things get ugly. But I’d still keep a wary eye on August 26. The next pivotal date after that would be end of September or first of October. If anything interesting gets reported, we can talk about it, but it appears we are in a quiet spot for now.
