The annual 2009 US Government Deficit is reported to be 1.42 Trillion Dollars.

What is $1.42 trillion? It’s more than the total national debt for the first 200 years of the Republic, more than the entire economy of India, almost as much as Canada’s, and more than $4,700 for every man, woman and child in the United States.

It’s the federal budget deficit for 2009, more than three times the most red ink ever amassed in a single year. (more…)

In a stunning turn of events, the Canadian dollar is almost the same value as the US greenback.  The Canadian currency, nicknamed the loonie for the aquatic bird on the C$1 coin, has enjoyed a continuing rally  and has a high likelyhood of surpassing the value of the US dollar in the coming months. (more…)

Gold has reached a new high today, trading at 1069.70, surpassing the previous high of 162.  When the gold futures markets closed, gold was up $7.50 at a near all time high of $1065 per ounce.

The gold rally is now gaining momentum, as realizations sink in that the dollar has become seriously devalued, and is no longer able to hold the distinction as the “reserve currency” for the entire world.

Of course the flames of the dollars decline have been fanned by the recent crash of the United States financial markets, and government policies that are having a negative effect upon the business climate.

As the strength of the dollar erodes, the value of alternative “safe” investment currencies and assets will increase, chief among them is Gold.

The questions now are how quickly and completely will the market for the dollar decline?  And what to do about the collateral damage that this will cause ?  It is unlikely that economic conditions will change for the better any time soon.

by Bill Bonner
London, England

We have spent the last few days holding back tears…

Michael Jackson! Robert MacNamara!

And now our heart goes out to Nantucket Island. Word came this morning that
the rich are not living it up like they used to. The New York Times reports
that it’s the slowest summer on Nantucket locals have ever seen. There are
over 600 properties for sale – and none of them are selling. Even at discounts
of up to a third off! Restaurants and bars are offering discounts too – anything
to lure in the customers. (more…)

LOS ANGELES, June 16, 2009 – In its second quarterly report of 2009, the UCLA Anderson Forecast indicates that there is no quick fix for what is ailing the US economy and that it is still “very sick.”

“Tepid” Economic Growth for 2009

UCLA Anderson Forecast senior economist David Shulman notes that the US Economy will experience “the weakest economic recovery of the postwar era”.   The Forecast sees the “tepid” growth of gross domestic product improving from negative growth in the second quarter of this year to nearly perceptible growth in the final quarter. (more…)