Autumn austerity surprise for U.S.?

Orignially posted April 20, 2011. Bumping for accurate call. Interesting forecast from GEAB. FOFOA has spoken highly of them in the past. Some social mood predictions (though not presented as such) in their latest summary.

GEAB N°54 is available! Global systemic crisis: Autumn 2011 – Budget/T-Bonds/Dollar, the three US crises which will cause the Very Serious Breakdown of the global economic, financial and monetary system

The context, therefore, is no longer mere paralysis but really an all-out confrontation between two visions of the country’s future. The closer the date of the next presidential election gets (November 2012), the more the confrontation between the two sides will intensify and take place regardless of any rule of good behaviour, including safeguarding the country’s common good: "Whom the gods would destroy they first make mad", says the ancient Greek proverb. The Washington political scene will increasingly resemble a psychiatric hospital (26) in the coming months, making "the bizarre decision" increasingly likely. If, in order to reassure themselves about the dollar and Treasury bonds, Western experts repeat in turn that the Chinese would be crazy to get rid of these assets which would thus only hasten their fall in value, it’s that they haven’t yet understood that it’s Washington and its political mistakes that can come to the decision that hastens this fall.

Emphasis mine. Also, here's tidbits from the latest (must be a subscriber to read it). GEAB N°57 - Contents

End 2012 – Neo-protectionism establishes itself as the new paradigm of world trade Because of the simultaneity of the global economy relapsing into recession and key political events affecting the world’s major economies, we anticipate a sharp rise in protectionism from the end of 2012. In its initial phase, it will mainly take the form of various non-tariff barriers, more discreet than traditional customs duties, but it will, de facto, cause the most important change in the terms of world trade since the signing of the GATT (General Agreement on Tariffs and Trade, the WTO’s predecessor) in 1947… (page 14) Subscribe Gold 2011- 2014: LEAP/E2020’s anticipations Of course, as after each significant increase in an asset’s price, the debates rage between, on the one hand, those who analyze this increase as the emergence of a bubble inevitably destined to burst in the more or less near future and, on the other hand, those who believe that it is only the beginning of a long rise culminating with the return of the gold standard at the heart of the international monetary system. Therefore, in this issue, LEAP/E2020 presents its anticipations on this subject for the period 2012-2014 to help investors make their gold arbitrage trades…

Also, please see: GEAB N°57 is available! Global systemic crisis - Fourth quarter 2011: Implosive fusion of global financial assets. It is a long counter argument to the euro breakup speculation.