WHAT ALMIGHTY BUCK?

The Treasury guys must be panicking. They just issued $81 billion in new U.S. Treasury securities. Also, they just piled a record $25 billion more in 10-year notes onto the auction block in early November.

That’s on top of the record $123 billion in Treasury notes they just issued on October 27th.

Now why are they issuing all these Treasuries?

In a word, DEBT.

Geithner and his debt squad are now on the hook to pay for the $1.42 TRILLON budget deficit recorded on September 30th.

They’re also responsible for the $9.1 TRILLION deficit expected over the next decade.

Of course, that’s on top of the $12 TRILLION in public debt that we already owe. And the $11.9 TRILLION in outstanding Treasury securities that Uncle Sam still has to pay back investors.

It’s enough to make you want to gag.

How do you think they’re going to pay investors back for all those Treasuries?

They’ll ask their buddies at the Fed to print more dollars.

Or they’ll ask the Fed to buy those Treasuries outright, if they don’t sell. (The Fed has been doing this for quite some time by the way.)

How does the Fed have money to do this? They print more dollars… devaluing every single dollar in your bank account while they’re at it.
Do You Have $344,000 to Pay Uncle Sam? Well You Should.

You see most people have no idea what the U.S. government owes on “unfunded obligations”. That’s government-ese for entitlement programs like Medicare, Social Security, etc.

Right now, the total unfunded obligations sits at $106 Trillion dollars! That’s 780% MORE than the “national debt.”

Now, let’s do a little math…

If you charged Americans for the national debt, each citizen would have to shell out $38,940. If you just charged taxpayers, that tab would climb to $104,000 per person.

Our nation’s Total Assets now stand at $74 Trillion dollars, or $240,000 per citizen.

Now add in the “unfunded obligations” at $106 Trillion, and every citizen would have to shell out $344,000 to keep us afloat.

In other words…as a country, we are flat-broke!

By the way, if you don't believe me, you can go to the National Debt Clock website and see for yourself. But I warn you don’t go there if you have a weak stomach.

Now, the Reserve Bank of India may be one of the few central banks to publicly dis the dollar this year. But the world’s leaders have been doing that more and more lately.

Here’s a quick recap of what’s been happening this year…

* In March, China's central bank head Zhou Xiaochuan posted an essay on the web that displayed his discontent with the world’s reserve currency. “An international reserve currency should not be tied to the interests and economic conditions of any one country.”

* In July, Russian President Dmitry Medvedev pulled out a sample coin for the new “united future world currency” from his pocket at the G-8 meeting, to show his support for a new reserve currency.

* In September, the UN wrote a report that called to replace the U.S. dollar with an artificial currency in global trading. They wrote, “Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability.”

* Just this week, World Bank President, Robert Zoellick said that with China’s growth trend, the Chinese yuan could develop as an alternative to the U.S. dollar as a global reserve currency in 15 years.

All these comments have helped push the dollar lower this year on various occasions.

Now it’s India’s turn to make a public announcement against the dollar.

Up until now, the India’s government has only been somewhat critical of the U.S. dollar. Then last week, India’s central bank decided to take this public step of announcing its purchase of gold for its reserve.

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