An informative update on what is going on with the US -- and wider -- economy can be found by listening to this week's McAlvany Weekly Commentary.

Topics covered in this half hour conversation range through the US housing market, how the US looks to be going into an inflationary depression, the fact that there is now $1.2 quadrillion tied up in derivatives (up from $681 trillion at the start of the year), Goldman Sachs' involvement with the US Treasury, National Australia Bank's recent decision to write-down 90% of its holdings of US mortgage debt (an admission that it AAA-rated securities were virtually worthless), the fact that around $5 trillion of US mortgage debt is considered "risky" and, last, but not least, that it is quite likely that US sovereign debt will be downgraded -- that is, even Treasury securities are no longer a safe hold.

These waves are only just starting to lap our shores. Forewarned is forearmed.


From the LPUK blog.