Share on Google Plus Share on Twitter 1 Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 4 (5 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   No comments

OpEdNews Op Eds

POP QUIZ: Why did gun sales in the US surge during the Christmas season?

By       Message Mike Whitney     Permalink
      (Page 1 of 3 pages)
Related Topic(s): ; ; , Add Tags Add to My Group(s)

Must Read 3   Supported 3   Well Said 2  
View Ratings | Rate It

opednews.com Headlined to H2 1/31/12

Author 33
Become a Fan
  (44 fans)
- Advertisement -

Okay, here's your economics quiz for the day:

1--Why did gun sales in the US surge during the Christmas season?

2--Why is the 10-year Treasury still stuck below 2 percent three years into the so-called "recovery"?

3--Why did the Fed announce that it will keep interest rates at zero for another three years when 4th Quarter GDP clocked in at a respectable 2.8 percent?

4--Why are retail investors taking their money out of stocks and bonds and dumping it into checking and savings accounts at a record pace?

All of the above questions can be answered with one word. Can you guess what that word is?

Here's a clue from an article that popped up in the Telegraph titled "Americans buy record numbers of guns for Christmas":

"Americans bought record numbers of guns last month amid an apparent surge in popularity for weapons as Christmas presents.

"According to the FBI, over 1.5 million background checks on customers were requested by gun dealers to the National Instant Criminal Background Check System in December. Nearly 500,000 of those were in the six days before Christmas.

- Advertisement -

"It was the highest number ever in a single month, surpassing the previous record set in November.

"On Dec 23 alone there were 102,222 background checks, making it the second busiest single day for buying guns in history. The actual number of guns bought may have been even higher if individual customers took home more than one each." (The Telegraph)"

So, what's this all about? Why the sudden surge in gun sales?

Here's another clue. Take a look at the 10-year Treasury which -- as of Friday -- was still stuck below 2 percent at 1.89 percent. And the 5-year is even worse. The yield on the 5-year dropped to a record 0.75 just last Wednesday.

What does it mean? It means investors are so scared that they're willing to make next-to-nothing on their money just to avoid any risk. It also means that no one's borrowing money, (because there's nothing to invest in) and that all the blabber about a "recovery" is just hogwash.

- Advertisement -

Next question: Why did the Fed announce that it will keep interest rates at zero for another three years when 4th Quarter GDP showed a dramatic improvement to 2.8 percent?

Same answer, really. It's because the economy is still in the tank. No one's borrowing and no one's lending. Consumers are still slashing their spending, while businesses are sitting on $1.9 trillion in savings with no productive outlets for investment. And -- oh by-the-way -- the banks are also sitting on $1.6 trillion in reserves with no credit-worthy borrowers to lend to. The economy is dead in the water, so Mr. Bernanke -- being the genius that he is -- has settled on a policy that will kickstart consumer spending and lead to the next credit expansion.

Guess what the policy is?

Next Page  1  |  2  |  3

 

- Advertisement -

Must Read 3   Supported 3   Well Said 2  
View Ratings | Rate It

Mike is a freelance writer living in Washington state.


Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon


Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): ; ; , Add Tags
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Class Warfare Scoreboard -- Guess Who's Winning?

Newt's Victory: Was it a "Surge" of popularity or faulty voting machines?

Is Fukushima's Doomsday Machine About to Blow?

Troublemaking Washington: Pushing Ukraine to the Brink

Dominique Strauss-Kahn was trying to torpedo the dollar

Unraveling the Welfare Safety Net - Europe Moves Closer to Banktatorship