Today the President announced that the official national debt will break $15 trillion in 2011. This equals the entire U.S. economy and is roughly a 200% increase in our national debt in the last 10 years. The white house is projecting a $15.476 trillion dollar deficit by the end of September 2011, which will make fiscal year 2011 the largest jump in our debt in history. After the election that was centered around out of control government spending, President Obama chose to completely ignore the will of the people and opt for bond suicide. If there was any doubt that this nation will face a bond crisis in the next 5 to 10 years, in our opinion this is confirmation that we will.

How long will bond holders and investors continue to throw money at the U.S. Federal Government and be satisfied with a low return while food, energy, and now clothing prices are surging? In our opinion, this was it. With the election and all the talk about cutting spending, many investors and bond holders thought that we would finally see a change in Washington D.C. Instead, they received measily insignificant cut proposals from house republicans and a budget proposal from the white house that takes deficit spending to new records. The white house is projecting that interest payments on our debt by fiscal year 2015 will be $554 billion, but remember, like all white house projections, these numbers are more than likely far from reality. Iraq was suppossed to be the $50 billion dollar war and the $800 billion dollar stimulis was going to cap unemployment at 8%. The white house believes that investors are going to continue to accept record low yields in order to fund what we believe is fiscal insanity. In our opinion, the soverign debt crisis is going to be just like the sub-prime crisis, everyone will deny it until it’s too late. Unlike the housing crisis though, the government can’t come to the rescue because it’s going to be the government that needs the bailout.

Market Update

Andover Ventures Inc.(TSX-V: AOX & OTC: AOVTF) profiled on February 6, 2011, by recently broke the $0.76 resitance price pointed out by, AOX closed at $0.79 up roughly 20% in just the last week. For more information about AOX, please take the time to review our complete profile.

NWM Mining Inc (TSX-V: NWM & OTC: NWMMF) profiled on January 17, 2011, by at roughly 10 cents per share closed today at $0.17, a 70% increase since our profile just 4 weeks ago. NWM recently announced that they have started an exploration program at the Campamento exploration area that is south of the proven and probable gold reserve currently defined at the La Jojoba property. The drilling is scheduled to begin this week and will extend over the next 2-3 months. For more information about NWM, please take the time to review our complete profile.