By Alan Zibel, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The largest U.S. financial firms could be required by early next year to provide regulators a road map for how they can be wound down in the event of another financial crisis, the chairman of the Federal Deposit Insurance Corp. said Thursday.
The FDIC is scheduled next week to consider a final rule requiring the firms to submit to resolution plans, also known as "living wills," with regular updates, to regulators. The resolution plans are intended to give regulators a plan to follow if one of the nation's most-complex financial firms runs into trouble.
"I'm pushing to get something done before I leave," the agency's chairman, Sheila Bair, told reporters after a Senate Banking Committee hearing. Bair steps down from the agency on July 8, at the end of her five-year term.
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Thursday, June 30, 2011
Analysis: Weak economy may force second bailout of Ireland
By Carmel Crimmins DUBLIN
(Reuters) - As Europe struggles to put together a second bailout of Greece, to supplement the rescue effort launched last year, the crisis may force a second bailout of another indebted country in the region: Ireland.
Dublin, which signed up to an 85 billion euro ($122 billion) bailout from the European Union and the International Monetary Fund last November, is hoping to generate enough economic growth over the next two years to decouple itself from Greece in the minds of investors.
This would permit Ireland to make a full return to funding itself in the debt markets in 2013, after testing the waters in the second half of 2012 with short-term issues.
More Here..
(Reuters) - As Europe struggles to put together a second bailout of Greece, to supplement the rescue effort launched last year, the crisis may force a second bailout of another indebted country in the region: Ireland.
Dublin, which signed up to an 85 billion euro ($122 billion) bailout from the European Union and the International Monetary Fund last November, is hoping to generate enough economic growth over the next two years to decouple itself from Greece in the minds of investors.
This would permit Ireland to make a full return to funding itself in the debt markets in 2013, after testing the waters in the second half of 2012 with short-term issues.
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Shell Game
The entire U.S. financial system has become a gigantic shell game. While it is still in motion, a shell game can be mesmerizing to watch. But when it ends the consequences can be painful. So exactly what is a shell game? According to Wikipedia, a shell game "is portrayed as a gambling game, but in reality, when a wager for money is made, it is a confidence trick used to perpetrate fraud." Sadly, that is exactly what is happening on the global stage today. The Federal Reserve is like a con artist that is desperately trying to stay one step ahead of everyone else. The folks at the Fed know that the debt that the U.S. government has accumulated is not sustainable and will eventually collapse. They also know that the U.S. dollar is eventually going to become essentially worthless. But for now the Federal Reserve is putting on a grand show and is trying to keep everyone believing that the game is fair and legitimate.
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Greece give second nod to austerity
Karen Kissane EUROPE CORRESPONDENT
THE Greek parliament has passed legislation enabling tax increases, spending cuts and privatisations to go ahead quickly, in a second show of support for savage austerity measures demanded by its neighbours.
Defying days of rioting by anti-austerity protesters in Athens, 155 deputies out of the 300-seat parliament voted early today to set up a privatisation agency and reform the tax system.
This was the same number who had voted for the original package 24 hours earlier.
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THE Greek parliament has passed legislation enabling tax increases, spending cuts and privatisations to go ahead quickly, in a second show of support for savage austerity measures demanded by its neighbours.
Defying days of rioting by anti-austerity protesters in Athens, 155 deputies out of the 300-seat parliament voted early today to set up a privatisation agency and reform the tax system.
This was the same number who had voted for the original package 24 hours earlier.
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US NPPs are able to withstand unpredictable weather conditions?
Raikhlina Sasha
day we will be talking to David Lochbaum, who is one of the nation’s top independent experts on nuclear power. He is also the Director of Nuclear Safety Project at the Union of Concerned Scientists. Our topic today is the flooding of the nuclear power stations in Nebraska.
What is the latest update from the Fort Calhoun power station?
Flood waters are close to the building, and the plant has been sandbagging and putting berms up to protect important facilities from damage from flood waters. It looks like, as the floor recedes, things will continue to improve.
It still came pretty close, because just looking at some of the numbers right here, I think the water rose up to 1,004 feet, while the facility is designed to withstand floodwater up to 1,014 feet, so that is just 10 feet of “safety buffer”.
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day we will be talking to David Lochbaum, who is one of the nation’s top independent experts on nuclear power. He is also the Director of Nuclear Safety Project at the Union of Concerned Scientists. Our topic today is the flooding of the nuclear power stations in Nebraska.
What is the latest update from the Fort Calhoun power station?
Flood waters are close to the building, and the plant has been sandbagging and putting berms up to protect important facilities from damage from flood waters. It looks like, as the floor recedes, things will continue to improve.
It still came pretty close, because just looking at some of the numbers right here, I think the water rose up to 1,004 feet, while the facility is designed to withstand floodwater up to 1,014 feet, so that is just 10 feet of “safety buffer”.
More Here..
Thousands Strike In Britain As EU Debt Crisis Festers
NPR Staff and Wires
Thousands of British teachers and civil servants walked off the job for a day Thursday in the latest in a series of protests sweeping Europe over the imposition of tough austerity measures aimed at controlling debt and spending.
The U.K. demonstrations unfolded as Greece passed a second and final austerity bill and debt-saddled Italy and Portugal announced austerity measures of their own. The financial straits have led to a crisis of confidence and gloomy debates over whether the European Union even has a long-term future.
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Thousands of British teachers and civil servants walked off the job for a day Thursday in the latest in a series of protests sweeping Europe over the imposition of tough austerity measures aimed at controlling debt and spending.
The U.K. demonstrations unfolded as Greece passed a second and final austerity bill and debt-saddled Italy and Portugal announced austerity measures of their own. The financial straits have led to a crisis of confidence and gloomy debates over whether the European Union even has a long-term future.
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Tracing America's "Too Big To Fail" Crisis: An Infographic
Most call it one of the biggest financial crises in living memory. Others call it one great big Ponzi scheme. Whatever you want to call it, a bunch of people lost a bunch of money and the world of high finance may never be the same. But don’t worry – that doesn’t mean that we’ve fixed all these problems or punished the people responsible. It just means that next time you can’t get a loan or a higher credit limit, the banks will have an excuse.
Our “most unwanted” list includes guys like Martin Feldstein. He was an economics professor at a little school called Harvard (maybe you’ve heard of it) and served as Ronald Reagan’s Chief Economic Advisor. He was a major architect in Reagan’s deregulation scheme (which is either the best thing ever in the world to some political views, or the worst thing in the world to others).
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Our “most unwanted” list includes guys like Martin Feldstein. He was an economics professor at a little school called Harvard (maybe you’ve heard of it) and served as Ronald Reagan’s Chief Economic Advisor. He was a major architect in Reagan’s deregulation scheme (which is either the best thing ever in the world to some political views, or the worst thing in the world to others).
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Greece still needs to address its solvency issue
Carl Astorri
Greek Prime Minister Papandreou has narrowly averted economic disaster as parliament agreed to the Greek austerity measures.
This will lead to a further bail-out of the country and fends off the risk of default. The austerity measures will see a €28 billion (£25 billion) package of tax increases but he now faces unrest in the country and like the mythological Greek king Sisyphus - condemned to roll a boulder up a hill only to have it roll back down again just before reaching the top - will have only survived one crisis in order to face the next.
Unless Greece can pull off the seemingly impossible and grow its way out of debt, which we doubt very much, the solvency issue will still have to be tackled.
However, delaying the inevitable is the best option.
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Greek Prime Minister Papandreou has narrowly averted economic disaster as parliament agreed to the Greek austerity measures.
This will lead to a further bail-out of the country and fends off the risk of default. The austerity measures will see a €28 billion (£25 billion) package of tax increases but he now faces unrest in the country and like the mythological Greek king Sisyphus - condemned to roll a boulder up a hill only to have it roll back down again just before reaching the top - will have only survived one crisis in order to face the next.
Unless Greece can pull off the seemingly impossible and grow its way out of debt, which we doubt very much, the solvency issue will still have to be tackled.
However, delaying the inevitable is the best option.
More Here..
Bachmann Says ‘Scare Tactics’ Are Being Used In The Debt Ceiling Debate
by Personal Liberty News Desk
Representative Michele Bachmann (R-Minn.) said those warning of economic disaster if the debt ceiling is not raised are using “scare tactics.”
The Congresswoman, who recently announced her intention to seek the Republican nomination for the Presidency, said that if the United States paid down the interest on its debt, it could avoid defaulting on its obligations. However, Treasury Secretary Timothy Geithner told the House Small Business Committee that such a solution is “unworkable.”
Some government officials say that if the debt ceiling is not raised beyond its current standing at $14.3 trillion by Aug. 2, the economic consequences of an American default could be profound.
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Representative Michele Bachmann (R-Minn.) said those warning of economic disaster if the debt ceiling is not raised are using “scare tactics.”
The Congresswoman, who recently announced her intention to seek the Republican nomination for the Presidency, said that if the United States paid down the interest on its debt, it could avoid defaulting on its obligations. However, Treasury Secretary Timothy Geithner told the House Small Business Committee that such a solution is “unworkable.”
Some government officials say that if the debt ceiling is not raised beyond its current standing at $14.3 trillion by Aug. 2, the economic consequences of an American default could be profound.
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Edmund Stoiber Calls for European Economic Integration
From theTrumpet.com
Prominent German speaks out about Europe’s debt crisis.
The financial crisis in Greece could have worse consequences on the global financial system than the collapse of Lehman Brothers, according to statements made by European Union anti-bureaucracy czar Edmund Stoiber on June 10. In an interview with Focus, Stoiber recounted how he warned against letting Greece in the eurozone in the first place.
“I wanted a smaller eurozone,” he reminisced (translation ours throughout).
In a speech made three weeks earlier, at the nrw Academy of Sciences, Stoiber presented his solution to the crisis. “We can only defend the euro together,” he said. “The next step is a common economic policy. Only then can a transfer union be prevented.” In other words, like European Central Bank head Jean-Claude Trichet and others, Edmund Stoiber sees the need for a pan-European financial authority.
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Prominent German speaks out about Europe’s debt crisis.
The financial crisis in Greece could have worse consequences on the global financial system than the collapse of Lehman Brothers, according to statements made by European Union anti-bureaucracy czar Edmund Stoiber on June 10. In an interview with Focus, Stoiber recounted how he warned against letting Greece in the eurozone in the first place.
“I wanted a smaller eurozone,” he reminisced (translation ours throughout).
In a speech made three weeks earlier, at the nrw Academy of Sciences, Stoiber presented his solution to the crisis. “We can only defend the euro together,” he said. “The next step is a common economic policy. Only then can a transfer union be prevented.” In other words, like European Central Bank head Jean-Claude Trichet and others, Edmund Stoiber sees the need for a pan-European financial authority.
More Here..
GUEST VIEWPOINT: Interest rates not the only way the Fed boosts economy
By Mark Thoma and Tim Duy
A June 23 guest viewpoint by Phillip Romero and Riaan Nel discussed the Federal Reserve’s large-scale asset purchase program — the second round of quantitative easing, popularly known as QE2. The commentary contained a number of misconceptions about monetary policy that might interfere with people’s ability to gauge the success of the Federal Reserve’s actions during the crisis.
The first potential misunderstanding is about how monetary policy affects the economy. Traditionally, the Federal Reserve eases monetary policy by lowering short-term interest rates. This reduces the cost of borrowing and stimulates economic activity.
But what if, as now, short-term interest rates are already near zero and cannot be lowered further? Does this mean there’s nothing the Fed can do to help the economy?
More Here..
A June 23 guest viewpoint by Phillip Romero and Riaan Nel discussed the Federal Reserve’s large-scale asset purchase program — the second round of quantitative easing, popularly known as QE2. The commentary contained a number of misconceptions about monetary policy that might interfere with people’s ability to gauge the success of the Federal Reserve’s actions during the crisis.
The first potential misunderstanding is about how monetary policy affects the economy. Traditionally, the Federal Reserve eases monetary policy by lowering short-term interest rates. This reduces the cost of borrowing and stimulates economic activity.
But what if, as now, short-term interest rates are already near zero and cannot be lowered further? Does this mean there’s nothing the Fed can do to help the economy?
More Here..
What To Use For Currency In Financial Collapse
by Back to the Basics--Hope for the best, Prepare for the Worst
Source of article: http://survivalpreparednessblog.com/what-to-use-for-currency-in-financial-collapse
If you’re like me, I’m sure you thought about this many times. You’ve run the scenario of a financial collapse or other National emergency through your mind. That’s what people who are preparing for an emergency do.
I’ve bet you’ve thought about these questions more than once; What would happen to our financial markets? How about our currency? Would it still be worth something…anything? What should you use as currency in case of a financial crisis? One where our money is worthless and is not being accepted for goods and supplies.
I don’t know the answers to these questions anymore than anyone else does. Oh, I can speculate with the best of them and that’s what I’m doing in this blog post. There are too many variables involved to say what would happen in the case of a Global or National financial meltdown.
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Source of article: http://survivalpreparednessblog.com/what-to-use-for-currency-in-financial-collapse
If you’re like me, I’m sure you thought about this many times. You’ve run the scenario of a financial collapse or other National emergency through your mind. That’s what people who are preparing for an emergency do.
I’ve bet you’ve thought about these questions more than once; What would happen to our financial markets? How about our currency? Would it still be worth something…anything? What should you use as currency in case of a financial crisis? One where our money is worthless and is not being accepted for goods and supplies.
I don’t know the answers to these questions anymore than anyone else does. Oh, I can speculate with the best of them and that’s what I’m doing in this blog post. There are too many variables involved to say what would happen in the case of a Global or National financial meltdown.
More Here..
Young: Congress carries burden to ward off economic collapse
By DANIEL SUDDEATH
Republican House member remains critical of Obama’s policies
JEFFERSONVILLE — If lawmakers knew of a way to prevent the latest recession before its onset in 2007 and did not act it would have been “absolutely unforgivable,” Indiana’s 9th District U.S. Rep. Todd Young said Wednesday.
Similarly — knowing the level of the national debt coupled with forecasts for an economic plummet if spending isn’t balanced — Young said Congress and President Barack Obama will carry a burden of guilt if they do not soon approve measures to address the country’s economic future.
“We know it’s coming,” said Young, a Republican from Bloomington, of shortfalls predicted in entitlement programs such as Medicare and Social Security, as well as potential damage to the country’s bond ratings if the national deficit isn’t lowered over the next decade.
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Republican House member remains critical of Obama’s policies
JEFFERSONVILLE — If lawmakers knew of a way to prevent the latest recession before its onset in 2007 and did not act it would have been “absolutely unforgivable,” Indiana’s 9th District U.S. Rep. Todd Young said Wednesday.
Similarly — knowing the level of the national debt coupled with forecasts for an economic plummet if spending isn’t balanced — Young said Congress and President Barack Obama will carry a burden of guilt if they do not soon approve measures to address the country’s economic future.
“We know it’s coming,” said Young, a Republican from Bloomington, of shortfalls predicted in entitlement programs such as Medicare and Social Security, as well as potential damage to the country’s bond ratings if the national deficit isn’t lowered over the next decade.
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Wednesday, June 29, 2011
New Investment Strategy: Preparing for End Times
By AZAM AHMED
Investment professionals have a new pitch: The sky could soon be falling.
While Greece took a step back from the brink on Wednesday, the possibility of a default remains a fear. Europe’s debt crisis, as well as natural disasters and political uprisings, are prompting investors both big and small to seek out investments that promise to protect their portfolios in the event of economic Armageddon.
Worried that Greece could go belly up? So-called black swan funds — named for rare and unexpected events — offer a way to profit in the event of a market collapse. Think a slowdown in the United States or China could set off a global economic crisis? New exchange-traded funds are popping up to help pad investor confidence.
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Investment professionals have a new pitch: The sky could soon be falling.
While Greece took a step back from the brink on Wednesday, the possibility of a default remains a fear. Europe’s debt crisis, as well as natural disasters and political uprisings, are prompting investors both big and small to seek out investments that promise to protect their portfolios in the event of economic Armageddon.
Worried that Greece could go belly up? So-called black swan funds — named for rare and unexpected events — offer a way to profit in the event of a market collapse. Think a slowdown in the United States or China could set off a global economic crisis? New exchange-traded funds are popping up to help pad investor confidence.
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Trading Gold and Its Eurozone Crisis Premium
Recently gold challenged it’s all time highs, being propelled largely by renewed concerns over the Greek debt crisis and the possible ramifications a default could have on global financial markets. Whilst fears of a possible default in Greece are supportive of gold prices in the short term, it is important to understand that such pressures are largely temporary in nature and they do not significantly change the underlying market dynamics in the longer term. We feel the best way to describe this is by way of visualising that there is a premium built into the gold price that varies with regard to how prevalent fears over the Eurozone crisis are. Just to clarify, we are considering the effect that fluctuations in fears over the Greek situation have on the gold price, not the effect that an actual default would have on the price. When fears escalate, the gold price increases and when fears subside, then so does the gold price. It does not necessarily significantly alter the overall direction of gold prices over the longer term.
We think it is important to understand how changes in this “Eurozone debt crisis premium” impact the gold price. Distinguishing between price swings caused by fears over Greece and price swings that occur when a true fundamental or structural change has taken place in the market is imperative for valid and reliable market analysis.
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Greece pulls back from the brink
By Kerin Hope and Ralph Atkins in Athens
Greece has pulled back from the brink of default and averted a broader eurozone crisis after backing sweeping austerity measures in a knife-edge parliamentary vote.
George Papandreou, Greece’s socialist prime minister, won support on Wednesday for €28bn ($40.4bn) of tax increases and spending cuts, with just one of his party’s 155 parliamentary deputies voting against the package demanded by the European Union and International Monetary Fund.
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Greece has pulled back from the brink of default and averted a broader eurozone crisis after backing sweeping austerity measures in a knife-edge parliamentary vote.
George Papandreou, Greece’s socialist prime minister, won support on Wednesday for €28bn ($40.4bn) of tax increases and spending cuts, with just one of his party’s 155 parliamentary deputies voting against the package demanded by the European Union and International Monetary Fund.
More Here..
The Coming Chinese Depression
by Staff Report
Chinese Urbanization Putting Huge Strain On Cities ... A forest of buildings and cranes rises through thick fog above roads jammed with cars in a Chinese city the size of Austria and home to more than 32 million people. The southwestern megacity of Chongqing is bursting at the seams as authorities struggle to keep pace with its rapidly growing urban population – a situation seen repeatedly across the vast country of 1.3 billion people. – US Newstime
Dominant Social Theme: The Chinese Communist Party is running China according to enlightened Marxist principles. Therefore China will prosper indefinitely, thanks to Karl Marx. Communism cannot fail.
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Chinese Urbanization Putting Huge Strain On Cities ... A forest of buildings and cranes rises through thick fog above roads jammed with cars in a Chinese city the size of Austria and home to more than 32 million people. The southwestern megacity of Chongqing is bursting at the seams as authorities struggle to keep pace with its rapidly growing urban population – a situation seen repeatedly across the vast country of 1.3 billion people. – US Newstime
Dominant Social Theme: The Chinese Communist Party is running China according to enlightened Marxist principles. Therefore China will prosper indefinitely, thanks to Karl Marx. Communism cannot fail.
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U.S. enters next round of public pension fight
(Reuters) - The United States is entering the next round of a nationwide boxing match over public pensions, with states approving changes to the funds, a leading municipal union challenging claims of yawning shortfalls and a research group advocating moderation.
All this comes as the Governmental Accounting Standards Board meets this week to consider how to change and strengthen pension funds' financial reporting.
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All this comes as the Governmental Accounting Standards Board meets this week to consider how to change and strengthen pension funds' financial reporting.
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Financial euphoria, corruption and economic collapse
with DR RICHARD BERNAL
ONE of the common misconceptions which have been comprehensively dismissed by the recent global financial crisis is that developed countries manage their fiscal policy more scrupulously and more responsibly and hence are less prone to debt crises than developing countries.
Several developed countries in Europe have experienced debt crises, the origins of which were internal and were not due to external shocks. Poor economic management made these economies more vulnerable to the fallout emanating from the recession in the world economy. Three recent and still evolving cases, namely, Iceland, Ireland, Portugal and Greece have been the subject matter of books.
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ONE of the common misconceptions which have been comprehensively dismissed by the recent global financial crisis is that developed countries manage their fiscal policy more scrupulously and more responsibly and hence are less prone to debt crises than developing countries.
Several developed countries in Europe have experienced debt crises, the origins of which were internal and were not due to external shocks. Poor economic management made these economies more vulnerable to the fallout emanating from the recession in the world economy. Three recent and still evolving cases, namely, Iceland, Ireland, Portugal and Greece have been the subject matter of books.
More Here..
Russia cuts off power to Belarus
MINSK, Belarus (AP) — Russia cut off electricity supplies to struggling Belarus over unpaid bills on Wednesday, raising the heat on its economically struggling neighbor.
Imports of Russian electricity account for only about 10 percent of Belarus' needs, but Wednesday's cutoff will ratchet up pressure on Belarus, which is already suffering its worst financial crisis since the 1991 Soviet collapse. It has recently devalued the national currency, causing panic buying of goods and huge lines at currency exchange offices.
Lyudmila Zenkovich, a spokeswoman for the Belarusian Energy Ministry, said that it's not clear when Belarus will be able to pay off the debt as the country's currency reserves are running low
Russia has traditionally been Belarus' main sponsor and ally, but it phased out economic subsidies in recent years as it pushed for control of Belarus' industrial facilities. Last week Moscow provided Belarus with a $800 million emergency loan under the auspices of a Russia-dominated economic alliance of ex-Soviet nations, but it fell well short of Belarus' requirements.
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Imports of Russian electricity account for only about 10 percent of Belarus' needs, but Wednesday's cutoff will ratchet up pressure on Belarus, which is already suffering its worst financial crisis since the 1991 Soviet collapse. It has recently devalued the national currency, causing panic buying of goods and huge lines at currency exchange offices.
Lyudmila Zenkovich, a spokeswoman for the Belarusian Energy Ministry, said that it's not clear when Belarus will be able to pay off the debt as the country's currency reserves are running low
Russia has traditionally been Belarus' main sponsor and ally, but it phased out economic subsidies in recent years as it pushed for control of Belarus' industrial facilities. Last week Moscow provided Belarus with a $800 million emergency loan under the auspices of a Russia-dominated economic alliance of ex-Soviet nations, but it fell well short of Belarus' requirements.
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Bankrupt Greece Blackmails Europe, Bailout or Euro Zone Dies, Global Financial System Collapse
By: Nadeem_Walayat
The Greek population is in constant revolt with another 48 hour national strike underway against ever expanding announcements of economic austerity though to date little of which has actually been implemented and therefore risks at the very a least a delay of the latest tranche of Euro 12 billion in what has now become a permanent flow of funds from core Euro-zone to Greece and other peripheral eurozone countries, therefore tax payers of core Europe and to a lesser degree Britain are being taxed to pay for the unwillingness of the PIIGS to pay their bills.
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The Greek population is in constant revolt with another 48 hour national strike underway against ever expanding announcements of economic austerity though to date little of which has actually been implemented and therefore risks at the very a least a delay of the latest tranche of Euro 12 billion in what has now become a permanent flow of funds from core Euro-zone to Greece and other peripheral eurozone countries, therefore tax payers of core Europe and to a lesser degree Britain are being taxed to pay for the unwillingness of the PIIGS to pay their bills.
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Loss of liquidity could spark new financial crisis
CURRENCY MATTERS: John Kicklighter From: The Australian
WHAT was the real cause of the global financial crisis that climaxed in late 2008?
Many would point to losses on subprime mortgage-backed securities, but alone they wouldn't have led to such a big drop in capital markets and risk appetite. The real fuel to the fire was the withdrawal of liquidity and the forced liquidations that resulted. As the losses market participants were suffering through the downturn grew, lenders' confidence they would receive their capital back receded and those same banks needed the funds as well to cover their own losses. Eventually, without the money on hand to cover their immediate obligations, legacy companies such as Bear Stearns and Lehman Brothers would fail.
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WHAT was the real cause of the global financial crisis that climaxed in late 2008?
Many would point to losses on subprime mortgage-backed securities, but alone they wouldn't have led to such a big drop in capital markets and risk appetite. The real fuel to the fire was the withdrawal of liquidity and the forced liquidations that resulted. As the losses market participants were suffering through the downturn grew, lenders' confidence they would receive their capital back receded and those same banks needed the funds as well to cover their own losses. Eventually, without the money on hand to cover their immediate obligations, legacy companies such as Bear Stearns and Lehman Brothers would fail.
More Here..
The real causes of the economic crisis? They’re history.
By Phil Angelides
They say that winners get to write history. Three years after the meltdown of our financial markets, it’s clear who is winning and who is losing. Wall Street — arms outstretched in triumph — is racing toward the finish-line tape while millions of American families are struggling to stay on their feet. With victory seemingly in hand, the historical rewrite is in full swing.
The contrast in fortunes between those on top of the economic heap and those buried in the rubble couldn’t be starker. The 10 biggest banks now control more than three-quarters of the country’s banking assets. Profits have bounced back, while compensation at publicly traded Wall Street firms hit a record $135 billion in 2010.
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They say that winners get to write history. Three years after the meltdown of our financial markets, it’s clear who is winning and who is losing. Wall Street — arms outstretched in triumph — is racing toward the finish-line tape while millions of American families are struggling to stay on their feet. With victory seemingly in hand, the historical rewrite is in full swing.
The contrast in fortunes between those on top of the economic heap and those buried in the rubble couldn’t be starker. The 10 biggest banks now control more than three-quarters of the country’s banking assets. Profits have bounced back, while compensation at publicly traded Wall Street firms hit a record $135 billion in 2010.
More Here..
Tuesday, June 28, 2011
A Tale of Three Depressions
Posted by Rodney Graves
It was the best of times, it was the worst of times...
And the Progressives are making the same damn mistake that made them the worst of times.
The "Great Depression" was far from the first depression in the history of the United States. In point of fact, it was not even the first nor the sole depression of the 20th century. The less known one was the depression of 1920, and it was far sharper than the "Great Depression."
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It was the best of times, it was the worst of times...
And the Progressives are making the same damn mistake that made them the worst of times.
The "Great Depression" was far from the first depression in the history of the United States. In point of fact, it was not even the first nor the sole depression of the 20th century. The less known one was the depression of 1920, and it was far sharper than the "Great Depression."
More Here..
Are US wars, economic disaster well-intended mistakes? What we know from facts Continue reading on Examiner.com Are US wars, economic disaster well-intended mistakes? What we know from facts
Carl Herman Nonpartisan Examiner
The American public struggles with political rhetoric and US corporate media to discern fact from spin.
“As I grow older, I pay less attention to what men say. I just watch what they do.” unsourced and attributed to Andrew Carnegie
What US “leadership” has done are the following:
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The American public struggles with political rhetoric and US corporate media to discern fact from spin.
“As I grow older, I pay less attention to what men say. I just watch what they do.” unsourced and attributed to Andrew Carnegie
What US “leadership” has done are the following:
More Here..
Obama Pushing US To Economic Disaster: Google Founder
The eccentric and frugal billionaire college professor who helped Sergey Brin and Larry Brin develop Google has warned that US President Barack Obama is pushing the U.S. towards a path of economic disaster.
Stanford University’s David Cheriton, who is worth almost $2-billion according to Fortune magazine, believes that innovative and creative American entrepreneurs are being driven out of the country by Obama’s fiscal policies.
Cheriton told BBC: “When you look at, say, Larry and Sergey of Google, they made billions of dollars, but they contributed many more billions of dollars to the US economy. And so we should be empowering these people; we should be cultivating more of the next generation of those types. And yet, I think there’s almost a hostile attitude towards people who have been successful in this country.”
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Stanford University’s David Cheriton, who is worth almost $2-billion according to Fortune magazine, believes that innovative and creative American entrepreneurs are being driven out of the country by Obama’s fiscal policies.
Cheriton told BBC: “When you look at, say, Larry and Sergey of Google, they made billions of dollars, but they contributed many more billions of dollars to the US economy. And so we should be empowering these people; we should be cultivating more of the next generation of those types. And yet, I think there’s almost a hostile attitude towards people who have been successful in this country.”
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George Soros Predicts Economic Collapse; But China Says Not So Fast!
Jim Trippon: Billionaire George Soros rattled a lot of teacups in Europe last weekend by predicting “economic collapse”.
The legendary investor declared, “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread. The financial system remains extremely vulnerable.”
Is it time to panic? There are a lot of reasons to say no. And, it looks like stock markets are listening.
China (NYSE:FXI) has been an important player, buttressing confidence in Europe and even China itself over the past week.
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The legendary investor declared, “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread. The financial system remains extremely vulnerable.”
Is it time to panic? There are a lot of reasons to say no. And, it looks like stock markets are listening.
China (NYSE:FXI) has been an important player, buttressing confidence in Europe and even China itself over the past week.
More Here..
Denmark lets another bank fail
Denmark's Fjordbank Mors bank became the latest financial institution to fail over the weekend.
Danish bank shares fell today on concerns about the health of the country's small lenders after Fjordbank Mors became the latest to fail over the weekend.
Fjordbank Mors is the nineth Danish bank to collapse following the 2008-2009 financial crisis and the second to trigger a state-managed closure in which senior bondholders as well as shareholders will bear part of the losses.
The failure of Amagerbanken in February set a precedent in the European Union by making unsecured senior creditors liable for bank losses, highlighting the Danish government's resolve to shield taxpayers from the costs.
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Population bomb: 9 billion march to WWIII
By Paul B. Farrell, MarketWatch
Commentary: Can anyone halt this economic explosive?
SAN LUIS OBISPO, Calif. (MarketWatch) — Sshh. Don’t tell anyone. But “while you are reading these words, four people will have died from starvation. Most of them children.” Seventeen words. Four deaths. That statistic is from a cover of Paul Ehrlich’s 1968 provocative “Population Bomb.”
By the time you finish this column, another five hundred will die. By starvation. Mostly kids. Dead.
But global population will just keep growing, growing, growing. Why? The math is simple: Today there are more than two births for every death worldwide. One death. Two new babies.
Bomb? Tick-tick-ticking? Or economic bubble? Population growth is a basic assumption hard-wired in traditional economic theory. Unquestioned. Yes, population is our core economic problem. Not a military problem. But the bigger this economic bubble grows, the more we all sink into denial, the closer the point of no return where bubble becomes bomb, where war is the only alternative.
More Here..
Commentary: Can anyone halt this economic explosive?
SAN LUIS OBISPO, Calif. (MarketWatch) — Sshh. Don’t tell anyone. But “while you are reading these words, four people will have died from starvation. Most of them children.” Seventeen words. Four deaths. That statistic is from a cover of Paul Ehrlich’s 1968 provocative “Population Bomb.”
By the time you finish this column, another five hundred will die. By starvation. Mostly kids. Dead.
But global population will just keep growing, growing, growing. Why? The math is simple: Today there are more than two births for every death worldwide. One death. Two new babies.
Bomb? Tick-tick-ticking? Or economic bubble? Population growth is a basic assumption hard-wired in traditional economic theory. Unquestioned. Yes, population is our core economic problem. Not a military problem. But the bigger this economic bubble grows, the more we all sink into denial, the closer the point of no return where bubble becomes bomb, where war is the only alternative.
More Here..
Google professor David Cheriton warns over US economy
27 June 2011 Last updated at 22:53 ET
The professor who helped Google's founders get the company off the ground has warned that President Obama is leading the United States on a "crash course" towards economic disaster.
David Cheriton, who taught Sergey Brin and Larry Page at Stanford University in California and became a billionaire as Google grew, said that America's innovators and investors were being driven overseas in search of opportunity.
The BBC's Matt Frei spoke with Prof Cheriton on the Stanford campus.
More Here..
The professor who helped Google's founders get the company off the ground has warned that President Obama is leading the United States on a "crash course" towards economic disaster.
David Cheriton, who taught Sergey Brin and Larry Page at Stanford University in California and became a billionaire as Google grew, said that America's innovators and investors were being driven overseas in search of opportunity.
The BBC's Matt Frei spoke with Prof Cheriton on the Stanford campus.
More Here..
Saxo Bank Quarterly Outlook Q3 2011: Maximum Uncertainty in the World
HELLERUP, Denmark, June 28, 2011 /PRNewswire
Uncertainty and erratic moves will be the norm rather than the exception reports Saxo Bank, the online trading and investment specialist, in its economic outlook for the third quarter of 2011. The second half of 2011 will be volatile and the uncertainty almost as great as during the financial crisis.
To view the Multimedia News Release, please click:
The most probable outlook for Q3 is that the world extends monetary stimulus across the global economies. This will bring marginal higher growth but also increase the burden on fiscal payments and a need for structural changes. Any long-term solution needs to be forward looking and involve an agenda for dragging Europe out of the low growth stalemate. A solution based on buying more time will only take us closer to the feared full blown Crisis 2.0.
With this in mind three major themes are identified:
* The EU and US debt issue: time is up and decisions are needed
* Asia/China growth slows down as they turn to fighting inflation in earnest
* Social tension needs addressing - otherwise not only do we lose the young generation but we also fail to provide a sense of unity, the very basis for sustainable growth, peace and prosperity.
More Here..
Uncertainty and erratic moves will be the norm rather than the exception reports Saxo Bank, the online trading and investment specialist, in its economic outlook for the third quarter of 2011. The second half of 2011 will be volatile and the uncertainty almost as great as during the financial crisis.
To view the Multimedia News Release, please click:
The most probable outlook for Q3 is that the world extends monetary stimulus across the global economies. This will bring marginal higher growth but also increase the burden on fiscal payments and a need for structural changes. Any long-term solution needs to be forward looking and involve an agenda for dragging Europe out of the low growth stalemate. A solution based on buying more time will only take us closer to the feared full blown Crisis 2.0.
With this in mind three major themes are identified:
* The EU and US debt issue: time is up and decisions are needed
* Asia/China growth slows down as they turn to fighting inflation in earnest
* Social tension needs addressing - otherwise not only do we lose the young generation but we also fail to provide a sense of unity, the very basis for sustainable growth, peace and prosperity.
More Here..
The Financial Crisis in Greece
(openPR) - Dominating the headlines, the financial crisis in Greece has resulted in split opinions and the effects it will have in Britain and across Europe.
There are now worries about Italy, as their banks stocks were suspended on Friday following a steep drop in their share prices. There are also concerns that Italian banks face possible ratings downgrades.
The Duetsche Bank said: “The recent weakness has put Italy's structural problem in focus. This situation is so unique that to say that Spain, Italy and even other seemingly 'safer' countries will avoid the sovereign crisis might just be hopeful given we've never been here before. No-one has a template for such an environment.”
More Here..
There are now worries about Italy, as their banks stocks were suspended on Friday following a steep drop in their share prices. There are also concerns that Italian banks face possible ratings downgrades.
The Duetsche Bank said: “The recent weakness has put Italy's structural problem in focus. This situation is so unique that to say that Spain, Italy and even other seemingly 'safer' countries will avoid the sovereign crisis might just be hopeful given we've never been here before. No-one has a template for such an environment.”
More Here..
The Greek crisis unravelled and its impact on gold
Author: David Levenstein
A look at some of the facts about the current debt crisis in Greece, the reasons behind some of the political reactions and, how Greek people are buying gold
After 15 consecutive years of economic growth, Greece entered a recession in 2009. Greece's GDP growth has also, as an average, since the early 1990s been higher than the EU average. However, the Greek economy faces significant problems, including rising unemployment levels, an inefficient government, tax evasion and political corruption. Unemployment skyrocketed, from 10.3% in 2009 to 16.2% on March 2011, an increase of 57.28% leaving more than 800,000 unemployed. In the last quarter of 2010, unemployment in the youth reached
More Here..
A look at some of the facts about the current debt crisis in Greece, the reasons behind some of the political reactions and, how Greek people are buying gold
After 15 consecutive years of economic growth, Greece entered a recession in 2009. Greece's GDP growth has also, as an average, since the early 1990s been higher than the EU average. However, the Greek economy faces significant problems, including rising unemployment levels, an inefficient government, tax evasion and political corruption. Unemployment skyrocketed, from 10.3% in 2009 to 16.2% on March 2011, an increase of 57.28% leaving more than 800,000 unemployed. In the last quarter of 2010, unemployment in the youth reached
More Here..
World On Verge Of Economic Collapse As European Leaders Prepare For Greek Default
Posted by Alexander Higgins
European leaders are now openly admitting they are preparing for an imminent default on Greek debt causing the bank ran media, who have been warning of “Armageddon Scenarios” and global financial meltdown Greek defaults, to suddenly develop schizophrenia throwing their propaganda machine in revers and run stories saying it is “no bid deal” if Greek defaults.
Truth be told, China is scared enough that they are stepped in to offer billions to suck up worthless European sovereign debt and billionaire hedge fund manager George Soros isn’t buying the Wall Street propaganda machine’s attempt to manipulate the market psychology either. He tells reporters that a Greek debt default will trigger a global economic collapse will begin with the Greek debt default and spread from there.
More Here..
European leaders are now openly admitting they are preparing for an imminent default on Greek debt causing the bank ran media, who have been warning of “Armageddon Scenarios” and global financial meltdown Greek defaults, to suddenly develop schizophrenia throwing their propaganda machine in revers and run stories saying it is “no bid deal” if Greek defaults.
Truth be told, China is scared enough that they are stepped in to offer billions to suck up worthless European sovereign debt and billionaire hedge fund manager George Soros isn’t buying the Wall Street propaganda machine’s attempt to manipulate the market psychology either. He tells reporters that a Greek debt default will trigger a global economic collapse will begin with the Greek debt default and spread from there.
More Here..
Monday, June 27, 2011
“Dream A Little Dream”: How Long Would It Take To Pay Off The U.S. Federal Government Debt?
Let’s dream: Let’s imagine that the American political leadership decides to get serious about U.S. Federal government debt reduction—crazy as it may sound.
Actually, that’s too crazy. The American political leadership will never “do the right thing” with regards the deficit. After all, last spring, the American political leadership couldn’t agree on a measly $50 billion worth of cuts—a mere 1.4% of the total Federal government budget.
Okay, so in order to give our daydream a veneer of verisimilitude, let’s pretend instead that the members of Congress and the president are the victims of a cunning biological terrorist attack—they are infected with truly massive doses of both the Responsibility Bug and the Austerity Virus.
More Here..
Actually, that’s too crazy. The American political leadership will never “do the right thing” with regards the deficit. After all, last spring, the American political leadership couldn’t agree on a measly $50 billion worth of cuts—a mere 1.4% of the total Federal government budget.
Okay, so in order to give our daydream a veneer of verisimilitude, let’s pretend instead that the members of Congress and the president are the victims of a cunning biological terrorist attack—they are infected with truly massive doses of both the Responsibility Bug and the Austerity Virus.
More Here..
UK should raise interest rates says BIS
Author: Jeff Taylor
The Bank for International Settlements, which is the central banks’ central bank, has argued that the UK may have to consider raising interest rates more quickly than planned to prevent another financial crisis. Even in the face of economic fragility.
In its 81st annual report issued yesterday, BIS said that central banks should consider increasing interest rates faster than in the past when tightening their policy in response to the increasing inflationary pressures.
More Here..
The Bank for International Settlements, which is the central banks’ central bank, has argued that the UK may have to consider raising interest rates more quickly than planned to prevent another financial crisis. Even in the face of economic fragility.
In its 81st annual report issued yesterday, BIS said that central banks should consider increasing interest rates faster than in the past when tightening their policy in response to the increasing inflationary pressures.
More Here..
Soros: “Financial system remains extremely vulnerable ... We are on the verge of an economic collapse”
Goldcore Bullion and Wealth Management Company
Gold is mixed today after last week’s 2.4% fall. The short term trend remains negative but medium and long fundamentals remain supportive as do the very challenging and risky macro, sovereign debt and currency environment. Physical buying remains strong at the $1500 level with premiums for gold bullion bars higher in Singapore and Hong Kong.
More Here..
Gold is mixed today after last week’s 2.4% fall. The short term trend remains negative but medium and long fundamentals remain supportive as do the very challenging and risky macro, sovereign debt and currency environment. Physical buying remains strong at the $1500 level with premiums for gold bullion bars higher in Singapore and Hong Kong.
More Here..
Threat of $100bn hit if US top rating lost
By Michael MacKenzie in New York
Investors in the US government bond market could face losses of up to $100bn if the largest economy loses its triple A rating, according to a research arm of McGraw-Hill, the parent of Standard & Poor’s.
A ratings downgrade that results in higher bond yields and lower prices could also mean the US Treasury paying $2.3bn-$3.75bn a year more in interest on financing a $1,000bn annual budget deficit.
“If Standard & Poor’s or any of the other major rating agencies downgrade the US, Treasuries would likely drop in value, possibly by as much as $100bn,” said analysts at S&P Valuation and Risk Strategies, a research team separate from the agency.
More Here..
Investors in the US government bond market could face losses of up to $100bn if the largest economy loses its triple A rating, according to a research arm of McGraw-Hill, the parent of Standard & Poor’s.
A ratings downgrade that results in higher bond yields and lower prices could also mean the US Treasury paying $2.3bn-$3.75bn a year more in interest on financing a $1,000bn annual budget deficit.
“If Standard & Poor’s or any of the other major rating agencies downgrade the US, Treasuries would likely drop in value, possibly by as much as $100bn,” said analysts at S&P Valuation and Risk Strategies, a research team separate from the agency.
More Here..
Enter the dragon 'to save the euro
By Malcolm Moore, in Shanghai, Peter Foster in Beijing and Andrew Cave in London
It is in the interest of cash-rich China to help resolve the eurozone debt crisis, but Chinese premier Wen Jiabao, who is visiting Britain and Continental Europe, will want a share of the West’s buying power in return .
As Wen Jiabao, the Chinese premier, stepped off his plane in Birmingham on Saturday, it was difficult to avoid the feeling that the UK, and Europe, have never looked weaker in Chinese eyes.
In private, senior Chinese diplomats are now openly scornful of Britain’s economic prospects and have even asked why Mr Wen should grace such a weak trading partner with three days of his time.
Indeed, it is telling that the first stop on Mr Wen’s tour is Longbridge, the old MG Rover car factory that passed into Chinese hands in 2005. Once a byword for poor productivity, wildcat strikes and trade union power in its British Leyland and Austin Rover days, the plant is now host to China’s biggest industrial presence in the UK. Owned by Shanghai Automobile Industry Corporation, the factory designs and assembles MG cars in the UK made from car parts manufactured in China.
More Here..
It is in the interest of cash-rich China to help resolve the eurozone debt crisis, but Chinese premier Wen Jiabao, who is visiting Britain and Continental Europe, will want a share of the West’s buying power in return .
As Wen Jiabao, the Chinese premier, stepped off his plane in Birmingham on Saturday, it was difficult to avoid the feeling that the UK, and Europe, have never looked weaker in Chinese eyes.
In private, senior Chinese diplomats are now openly scornful of Britain’s economic prospects and have even asked why Mr Wen should grace such a weak trading partner with three days of his time.
Indeed, it is telling that the first stop on Mr Wen’s tour is Longbridge, the old MG Rover car factory that passed into Chinese hands in 2005. Once a byword for poor productivity, wildcat strikes and trade union power in its British Leyland and Austin Rover days, the plant is now host to China’s biggest industrial presence in the UK. Owned by Shanghai Automobile Industry Corporation, the factory designs and assembles MG cars in the UK made from car parts manufactured in China.
More Here..
Greek mess may cause second GFC
By David and Libby Koch From: News Limited newspapers
HE dire situation in Greece has the potential to cause a second global financial crisis and we all need to factor in that possibility along with the impact of the fallout on our finances.
In recent months we've been keeping you up to date with the PIIGS (Portugal, Italy, Ireland, Greece and Spain). These are the economic cot cases of Europe that need bailing out of their financial woes.
Greece is the most at risk of failing and global financial markets are on tenterhooks at the risk of this triggering a domino-style collapse of the rest of the PIIGS.
We're being bombarded with questions about Greece, so here are the answers.
>> Why is Greece in such a bad way?
More Here..
HE dire situation in Greece has the potential to cause a second global financial crisis and we all need to factor in that possibility along with the impact of the fallout on our finances.
In recent months we've been keeping you up to date with the PIIGS (Portugal, Italy, Ireland, Greece and Spain). These are the economic cot cases of Europe that need bailing out of their financial woes.
Greece is the most at risk of failing and global financial markets are on tenterhooks at the risk of this triggering a domino-style collapse of the rest of the PIIGS.
We're being bombarded with questions about Greece, so here are the answers.
>> Why is Greece in such a bad way?
More Here..
Sunday, June 26, 2011
Rich Dad Advisors Discuss Food Storage for the coming 2012 Depression
Dad "Robert Kiyosaki" and his entire adviser team discuss how they have prepared for the coming depression:
- Year's supply of food
- Guns
- Gold & silver
- Cash on hand
They speak of the coming depression (inflationary or not it's going to happen), shutting down the credit card system, and higher taxes no matter what. Budget-cutting police forces promotes lawnessness.
What scares me now is these are not some local yocals on youtube speaking their wacky thoughts. Instead, these are calm, straight speaking, successful businessesmen in the know, telling us what they have done. We should take notice. They are prepared.
Please follow http://www.richdad.com http://www.goldsilver.com http://twitter.com/theRealKiyosaki
Original Source:
http://vimeo.com/17419706
- Year's supply of food
- Guns
- Gold & silver
- Cash on hand
They speak of the coming depression (inflationary or not it's going to happen), shutting down the credit card system, and higher taxes no matter what. Budget-cutting police forces promotes lawnessness.
What scares me now is these are not some local yocals on youtube speaking their wacky thoughts. Instead, these are calm, straight speaking, successful businessesmen in the know, telling us what they have done. We should take notice. They are prepared.
Please follow http://www.richdad.com http://www.goldsilver.com http://twitter.com/theRealKiyosaki
Original Source:
http://vimeo.com/17419706
American Distrust Of Banks Reaches Highest-Recorded Level: Gallup
The Huffington Post Maxwell Strachan
The recession might be officially over, but American views toward the institutions that brought the economic system close to collapse have never been worse.
According to a new poll by Gallup, 36 percent of Americans now say they have "very little" or "no" confidence in U.S. banks, the highest percentage on record since Gallup first started tracking that data. Those saying they have a "great deal" or "quite a lot" of confidence in banks has also stagnated, stuck at 23 percent for the second straight year, after falling to a low of 22 percent in 2009.
More Here..
The recession might be officially over, but American views toward the institutions that brought the economic system close to collapse have never been worse.
According to a new poll by Gallup, 36 percent of Americans now say they have "very little" or "no" confidence in U.S. banks, the highest percentage on record since Gallup first started tracking that data. Those saying they have a "great deal" or "quite a lot" of confidence in banks has also stagnated, stuck at 23 percent for the second straight year, after falling to a low of 22 percent in 2009.
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OVERDOSE – A Documentary on the Financial Crisis that is coming.
By: cmaukonen
This is a really good documentary on the financial collapse, why it happened, what was done after, what was not and why the next one will be even worse. The moves made by the government – here and elsewhere – and those not made have set the world up for another financial disaster. The premise they give here is after the bust of the Housing Bubble, the solution has been to inflate a large number of other bubbles all about to burst. It’s fairly log but worth watching. It has Spanish sub-titles and was done by a Swede.
More Here..
This is a really good documentary on the financial collapse, why it happened, what was done after, what was not and why the next one will be even worse. The moves made by the government – here and elsewhere – and those not made have set the world up for another financial disaster. The premise they give here is after the bust of the Housing Bubble, the solution has been to inflate a large number of other bubbles all about to burst. It’s fairly log but worth watching. It has Spanish sub-titles and was done by a Swede.
Sobredosis from Horatiux on Vimeo.
More Here..
America's role in this Greek tragedy
Mark Weisbrot guardian.co.uk
The European authorities are playing a dangerous game of "chicken" with Greece right now. It is overdue for US members of Congress to exercise some oversight as to what our government's role is in this process, and how we might be preparing for a Greek debt default. Depending on how it happens, this default could have serious repercussions for the international financial system, the US economy and, indeed, the world economy.
The US government has a direct and significant role in the Greek crisis because the US treasury department has the predominant voice in the International Monetary Fund (IMF). The IMF, together with the European Commission and the European Central Bank (ECB) – the three are commonly referred to as "the Troika" – are negotiating a new austerity package with the Greek government, in return for a new bailout deal. This package promises more suffering for the Greek people – that is acknowledged by all sides. But the Troika thinks it can ram the programme through the Greek parliament on Tuesday, with the threat that the IMF will not disburse the next $17bn instalment of Greece's current loan package – thus putting Greece in a situation of sudden default.
More Here..
The European authorities are playing a dangerous game of "chicken" with Greece right now. It is overdue for US members of Congress to exercise some oversight as to what our government's role is in this process, and how we might be preparing for a Greek debt default. Depending on how it happens, this default could have serious repercussions for the international financial system, the US economy and, indeed, the world economy.
The US government has a direct and significant role in the Greek crisis because the US treasury department has the predominant voice in the International Monetary Fund (IMF). The IMF, together with the European Commission and the European Central Bank (ECB) – the three are commonly referred to as "the Troika" – are negotiating a new austerity package with the Greek government, in return for a new bailout deal. This package promises more suffering for the Greek people – that is acknowledged by all sides. But the Troika thinks it can ram the programme through the Greek parliament on Tuesday, with the threat that the IMF will not disburse the next $17bn instalment of Greece's current loan package – thus putting Greece in a situation of sudden default.
More Here..
The Collapse of Global Financial System Has Become Inevitable
by Mehdi Rezaie
Dear friends and readers, I write this op-ed today primarily for those who are closely following the global economic, financial and political developments in the midst of an ongoing crisis of the world economy. We are standing at the crossroads of the deepest and the most far-reaching crisis that the human civilization has witnessed. In the developed countries of the west, the vast financial system that underpins the global economy is at the precipice of a worldwide systemic collapse that, upon unfolding, will take under the western economies and whatever left of a welfare state and middle class in the developed world. As many economists and experts warn, the standard of living of the people in the developed countries particularly the U.S. and other heavily indebted economies is set to sharply deteriorate over the next one decade.
More Here..
Dear friends and readers, I write this op-ed today primarily for those who are closely following the global economic, financial and political developments in the midst of an ongoing crisis of the world economy. We are standing at the crossroads of the deepest and the most far-reaching crisis that the human civilization has witnessed. In the developed countries of the west, the vast financial system that underpins the global economy is at the precipice of a worldwide systemic collapse that, upon unfolding, will take under the western economies and whatever left of a welfare state and middle class in the developed world. As many economists and experts warn, the standard of living of the people in the developed countries particularly the U.S. and other heavily indebted economies is set to sharply deteriorate over the next one decade.
More Here..
Postal Service crisis deepening
By DONALD BRADLEY The Kansas City Star
Postal workers will buzz across a frozen river in a hovercraft to get to a remote cabin north of the Arctic Circle.
If they pick up a letter there addressed to someone on the Havasupai Indian reservation, that’s where it will go. To the bottom of the Grand Canyon.
By pack mule.
And if the recipient has moved to Guam, the letter would then be forwarded to the middle of the Pacific.
All for the cost of a 44-cent stamp.
As business models go, this one seems suspect. A Las Vegas cab ride costs $3.30 for the first 1/13 of a mile.
But stamp by stamp, daily mail is an American ritual, in effect the country’s most popular entitlement.
It’s also in such a deep financial crisis — some say on the verge of collapse — that last week saw the U.S. Postal Service suspend payments to a retirement fund and make emphatic pleas to Congress for permission to end Saturday delivery.
More Here..
Postal workers will buzz across a frozen river in a hovercraft to get to a remote cabin north of the Arctic Circle.
If they pick up a letter there addressed to someone on the Havasupai Indian reservation, that’s where it will go. To the bottom of the Grand Canyon.
By pack mule.
And if the recipient has moved to Guam, the letter would then be forwarded to the middle of the Pacific.
All for the cost of a 44-cent stamp.
As business models go, this one seems suspect. A Las Vegas cab ride costs $3.30 for the first 1/13 of a mile.
But stamp by stamp, daily mail is an American ritual, in effect the country’s most popular entitlement.
It’s also in such a deep financial crisis — some say on the verge of collapse — that last week saw the U.S. Postal Service suspend payments to a retirement fund and make emphatic pleas to Congress for permission to end Saturday delivery.
More Here..
Nation with a past hopes for a future
Karen Kissane
More Here..
Greece is virtually bankrupt and Europe is threatened, writes Karen Kissane in Athens.
The tourists sit watching the view from a rooftop cafe in Athens. As evening sets in, there is a light on a distant hill. It spreads, and suddenly there is the Parthenon, high and proud on its huge flat rock. Not only is the graceful structure alight but so is the rock, both glowing as if alive, Greece's golden past blazing into the present.
The temple of Athena reminds the city named in her honor of its ancient glories; of a time when this small country played a part in human affairs that was out of all proportion to its size.
The tourists sit watching the view from a rooftop cafe in Athens. As evening sets in, there is a light on a distant hill. It spreads, and suddenly there is the Parthenon, high and proud on its huge flat rock. Not only is the graceful structure alight but so is the rock, both glowing as if alive, Greece's golden past blazing into the present.
The temple of Athena reminds the city named in her honor of its ancient glories; of a time when this small country played a part in human affairs that was out of all proportion to its size.
More Here..
Saturday, June 25, 2011
Chance Didn’t Create The Current Economic Crisis
Bob Chapman
What the world is experiencing today did not happen by chance, it was planned that way.
Depression
What Congressman Louis McFadden said of the “Great Depression” is as true today as it was in the 1930s. As Chairman of the House Banking Committee he said, “It was no accident; it was a carefully contrived occurrence. The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all.”
What you are experiencing economically and financially today is nothing new. Just study history all the precedence is there. The bankers and their willing helpers do the same thing over and over again. As we have said often what these banks represent is corporatist fascism and monopoly. Through their great wealth they control most governments and their court systems. That is why your elected representatives do not listen to you. They have already been purchased by Wall Street and banking. These are the same people who have financed most wars on both sides for centuries. Through their banks, and the Bank for International Settlements, and the BIS, they control money laundering and the worldwide drug trade, which is the most lucrative of all enterprises. The centerpiece of all the financial powers of the Illuminists come from the control of the drug trade for centuries.
More Here..
What the world is experiencing today did not happen by chance, it was planned that way.
Depression
What Congressman Louis McFadden said of the “Great Depression” is as true today as it was in the 1930s. As Chairman of the House Banking Committee he said, “It was no accident; it was a carefully contrived occurrence. The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all.”
What you are experiencing economically and financially today is nothing new. Just study history all the precedence is there. The bankers and their willing helpers do the same thing over and over again. As we have said often what these banks represent is corporatist fascism and monopoly. Through their great wealth they control most governments and their court systems. That is why your elected representatives do not listen to you. They have already been purchased by Wall Street and banking. These are the same people who have financed most wars on both sides for centuries. Through their banks, and the Bank for International Settlements, and the BIS, they control money laundering and the worldwide drug trade, which is the most lucrative of all enterprises. The centerpiece of all the financial powers of the Illuminists come from the control of the drug trade for centuries.
More Here..
Ft Calhoun Spent Fuel In Ground Pools, Flooded Already?
By Tom Burnett Exclusive to Rense.com
Ft. Calhoun is the designated spent fuel storage facility for the entire state of Nebraska...and maybe for more than one state.*
Calhoun stores its spent fuel in ground-level pools which are underwater anyway - but they are open at the top. When the Missouri river pours in there, it's going to make Fukushima look like an x-ray. But that's not all. There are a LOT of nuclear plants on both the Missouri and Mississippi and they can all go to hell fast.
BTW, US plants hold about four times OVER capacity in their spent fuel pools PLUS all the new and recently removed fuel from Calhoun...the plant was officially being refueled.
Be aware that Ft Calhoun isn't a BWR like Fukushima - it's a PWR. But that doesn't matter, because the fuel is all sitting OUTSIDE the reactor waiting to wash away or explode - which will destroy about 15,000 square miles of what used to be the corn belt. That's all being washed away by the flood waters anyway.
More Here..
Ft. Calhoun is the designated spent fuel storage facility for the entire state of Nebraska...and maybe for more than one state.*
Calhoun stores its spent fuel in ground-level pools which are underwater anyway - but they are open at the top. When the Missouri river pours in there, it's going to make Fukushima look like an x-ray. But that's not all. There are a LOT of nuclear plants on both the Missouri and Mississippi and they can all go to hell fast.
BTW, US plants hold about four times OVER capacity in their spent fuel pools PLUS all the new and recently removed fuel from Calhoun...the plant was officially being refueled.
Be aware that Ft Calhoun isn't a BWR like Fukushima - it's a PWR. But that doesn't matter, because the fuel is all sitting OUTSIDE the reactor waiting to wash away or explode - which will destroy about 15,000 square miles of what used to be the corn belt. That's all being washed away by the flood waters anyway.
More Here..
Friday, June 24, 2011
Ignore the Noise, Pay Attention to 'Growthflation'
Jack Bouroudjian
Folks, we talked a little yesterday about Growthflation—this once-in-a-lifetime global growth story that’s coupled with inflationary pressure on the demand side—and I wanted to pick up on that more today. I believe that if we tune out the day-to-day noise—Greece, the Fed press conference, the pullback in oil this morning—and take a macro view of the world, this is the scenario that will drive the markets higher for years to come. Let’s look at some more evidence, shall we?
Growth. Here in the U.S., we tend to be a bit myopic. We think the world ends at our shores. But for proof of a global growth story, let’s look at the World Bank’s GDP numbers in China and Brazil over the last decade (2009 was the most recent data available).
More Here..
Folks, we talked a little yesterday about Growthflation—this once-in-a-lifetime global growth story that’s coupled with inflationary pressure on the demand side—and I wanted to pick up on that more today. I believe that if we tune out the day-to-day noise—Greece, the Fed press conference, the pullback in oil this morning—and take a macro view of the world, this is the scenario that will drive the markets higher for years to come. Let’s look at some more evidence, shall we?
Growth. Here in the U.S., we tend to be a bit myopic. We think the world ends at our shores. But for proof of a global growth story, let’s look at the World Bank’s GDP numbers in China and Brazil over the last decade (2009 was the most recent data available).
More Here..
9 Out Of 10 Americans Don't Expect Raises To Compensate For Rising Price Of Goods, Survey Says
The Huffington Post Lila Shapiro
As the economic gloom settles in, American workers seem to be coming around to the conclusion that they may be facing a permanent midnight.
A new survey from American Pulse, released in June, shows that 9 out of 10 American workers are not expecting salary increases next year to compensate for the rising cost of basic necessities like fuel and food.
More Here..
As the economic gloom settles in, American workers seem to be coming around to the conclusion that they may be facing a permanent midnight.
A new survey from American Pulse, released in June, shows that 9 out of 10 American workers are not expecting salary increases next year to compensate for the rising cost of basic necessities like fuel and food.
More Here..
Thursday, June 23, 2011
Here Are The 5 Worst Places To Be When The Dollar Collapses
By Silver Shield
The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money.
Our wealth, our work, our food, our government, even our relationships are affected by money. No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one.
All other currency crises have been regional and there were other currencies for people to grasp on to. This collapse will be global and it will bring down not only the dollar but all other fiat currencies, as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide. (Read the Silver Bullet and the Silver Shield to protect yourself from this collapse.)
More Here..
The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money.
Our wealth, our work, our food, our government, even our relationships are affected by money. No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one.
All other currency crises have been regional and there were other currencies for people to grasp on to. This collapse will be global and it will bring down not only the dollar but all other fiat currencies, as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide. (Read the Silver Bullet and the Silver Shield to protect yourself from this collapse.)
More Here..
WSJ: Bernanke's Darker Outlook Sparks Fear Of Currency Volatility
By Neil Shah
NEW YORK -(Dow Jones)- Investors are bracing for bigger currency swings after Federal Reserve officials signaled they won't do more to help the sluggish U.S. economy, judging from bets in the foreign-exchange derivatives market.
On Thursday, a gauge of expected volatility in the options market rose for many major and emerging-nation currencies. A widely-watched measure of bearish bets on the euro, called the "risk reversal," hit 2.75 from 2.55 a day earlier. That's near its 2.85 peak in late 2008 after Lehman Brothers Holdings Inc.'s collapse sparked a global economic crisis.
Federal Reserve Chairman Ben Bernanke's comments on Wednesday "spooked the market," says Ashwath Venkataraman, global head of emerging-market foreign- exchange options at HSBC Holdings PLC in London. Bernanke indicated Fed officials aren't planning new steps to pump money into the financial system even though the U.S. recovery remains weak.
More Here..
NEW YORK -(Dow Jones)- Investors are bracing for bigger currency swings after Federal Reserve officials signaled they won't do more to help the sluggish U.S. economy, judging from bets in the foreign-exchange derivatives market.
On Thursday, a gauge of expected volatility in the options market rose for many major and emerging-nation currencies. A widely-watched measure of bearish bets on the euro, called the "risk reversal," hit 2.75 from 2.55 a day earlier. That's near its 2.85 peak in late 2008 after Lehman Brothers Holdings Inc.'s collapse sparked a global economic crisis.
Federal Reserve Chairman Ben Bernanke's comments on Wednesday "spooked the market," says Ashwath Venkataraman, global head of emerging-market foreign- exchange options at HSBC Holdings PLC in London. Bernanke indicated Fed officials aren't planning new steps to pump money into the financial system even though the U.S. recovery remains weak.
More Here..
U.S. Horrific National Debt, Are You Prepared For The Coming Economic Collapse And The Next Great Depression?
By: Chris_Kitze
Michael Synder writes: It really is hard to find the words to describe the true horror of the national debt. The U.S. government has been on the greatest debt binge in all of human history, and a day of reckoning is coming that is going to be so painful that it is going to shock America to the core. We have lived so far above our means for so long that none of us really has any concept of what "normal" is like anymore. The United States has enjoyed the greatest party in the history of the world, but now this decades-old party is ending and the bills are coming due. It was Dick Cheney who famously said that "deficits don't matter". Well, try telling that to the nation of Greece right about now. The horror that Greece is just beginning to experience is a preview of what is going to happen to us as well. Only when it happens to us it is going to be so much worse, because when we go down we are going to bring the entire global financial system down with us.
More Here..
Michael Synder writes: It really is hard to find the words to describe the true horror of the national debt. The U.S. government has been on the greatest debt binge in all of human history, and a day of reckoning is coming that is going to be so painful that it is going to shock America to the core. We have lived so far above our means for so long that none of us really has any concept of what "normal" is like anymore. The United States has enjoyed the greatest party in the history of the world, but now this decades-old party is ending and the bills are coming due. It was Dick Cheney who famously said that "deficits don't matter". Well, try telling that to the nation of Greece right about now. The horror that Greece is just beginning to experience is a preview of what is going to happen to us as well. Only when it happens to us it is going to be so much worse, because when we go down we are going to bring the entire global financial system down with us.
More Here..
Bubble talk, Greece and gold's solid fundamentals - Adrian Ash
Interviewer: Geoff Candy
GEOFF CANDY: Welcome to this weeks edition of Mineweb.com's Gold Weekly podcast. Joining me on the line is the head of research at BullionVault.com, Adrian Ash. Gold has been rising consistently for more than 10 years and with each new high people are calling for a gold bubble and saying that it is going to come off now. You recently wrote a piece that looked to explode a few of the gold bubble myths if you like. Perhaps briefly to start off with why would you say that gold isn't in a bubble given its rise over the last 10 years?
ADRIAN ASH: You can understand why journalists and commentators who don't follow the gold market very closely look at it and see there's a bubble. We have just had the second highest weekly close ever in US dollar terms and the highest ever weekly close in both euro and sterling terms - but what a lot of people get confused, I think, is they look at the gold rise over the last 10 years and particularly over the last five years and they confuse longevity with speed.
More Here..
GEOFF CANDY: Welcome to this weeks edition of Mineweb.com's Gold Weekly podcast. Joining me on the line is the head of research at BullionVault.com, Adrian Ash. Gold has been rising consistently for more than 10 years and with each new high people are calling for a gold bubble and saying that it is going to come off now. You recently wrote a piece that looked to explode a few of the gold bubble myths if you like. Perhaps briefly to start off with why would you say that gold isn't in a bubble given its rise over the last 10 years?
ADRIAN ASH: You can understand why journalists and commentators who don't follow the gold market very closely look at it and see there's a bubble. We have just had the second highest weekly close ever in US dollar terms and the highest ever weekly close in both euro and sterling terms - but what a lot of people get confused, I think, is they look at the gold rise over the last 10 years and particularly over the last five years and they confuse longevity with speed.
More Here..
Mining Stocks, Gold and Silver Bullion May Be Ports in Upcoming Storm
By Jeb Handwerger
The Obama team is dedicated to Federal Reserve Chairman Ben Bernanke’s philosophy of avoiding depression through the printing press to proliferate cheap money. We are being set up for the acceptance of quantitative stimulus by whatever means and guises necessary.
Until now, everything was coming up roses. National recovery was in the air. Then, all of sudden these past few weeks, data turned on a dime? Economists were compelled to rethink hitherto positive figures. Are we being programmed to believe more quantitative easing is necessary?
More Here..
The Obama team is dedicated to Federal Reserve Chairman Ben Bernanke’s philosophy of avoiding depression through the printing press to proliferate cheap money. We are being set up for the acceptance of quantitative stimulus by whatever means and guises necessary.
Until now, everything was coming up roses. National recovery was in the air. Then, all of sudden these past few weeks, data turned on a dime? Economists were compelled to rethink hitherto positive figures. Are we being programmed to believe more quantitative easing is necessary?
More Here..
Riots & Mobs Coming to a Town Near You
Posted by The Dollar Vigilante
We’ve been quite clear about what we think is going to happen in the coming months and years. We expect either a US Government and Eurozone default, leading to serious repercussions in the western world as entitlements, pensions and banks all collapse leaving tens of millions destitute. Or, the US dollar to be hyperinflated to worthlessness, bringing down every other fiat currency in the world and causing massive problems such as starvation as modern systems of trade and transport break down.
In either case there will also be a deep, serious depression of a magnitude much worse than in the 1930s.
More Here..
We’ve been quite clear about what we think is going to happen in the coming months and years. We expect either a US Government and Eurozone default, leading to serious repercussions in the western world as entitlements, pensions and banks all collapse leaving tens of millions destitute. Or, the US dollar to be hyperinflated to worthlessness, bringing down every other fiat currency in the world and causing massive problems such as starvation as modern systems of trade and transport break down.
In either case there will also be a deep, serious depression of a magnitude much worse than in the 1930s.
More Here..
Surge in gold and silver ownership worldwide as doomsday nears
Author: Lawrence Williams
The doomsday scenario resulting from multiple national defaults is horrific to contemplate and more and more people are at last beginning to climb into gold and silver as protection .
LONDON - As the implications of the global financial crisis are at long last beginning to filter through to the general public, the move to dump cash and other savings forms in favour of gold and silver - notably in the easily accessible and sellable coin form is now really beginning to gather momentum and is becoming a major driver of the precious metals markets.
We have long known that the rising, and rapidly expanding, middle classes in Asia have an almost inbuilt propensity to keep a significant proportion of their savings in gold while the less costly silver is now beginning to come into the equation. This has been emphasised recently with the news that the people's Bank of China has already had to virtually more than double its minting of its gold and silver Panda series of coins, despite the previous quota for this year itself already being double last year's with the populace buying gold and silver as a hedge against the onset of inflation there.
More Here..
The doomsday scenario resulting from multiple national defaults is horrific to contemplate and more and more people are at last beginning to climb into gold and silver as protection .
LONDON - As the implications of the global financial crisis are at long last beginning to filter through to the general public, the move to dump cash and other savings forms in favour of gold and silver - notably in the easily accessible and sellable coin form is now really beginning to gather momentum and is becoming a major driver of the precious metals markets.
We have long known that the rising, and rapidly expanding, middle classes in Asia have an almost inbuilt propensity to keep a significant proportion of their savings in gold while the less costly silver is now beginning to come into the equation. This has been emphasised recently with the news that the people's Bank of China has already had to virtually more than double its minting of its gold and silver Panda series of coins, despite the previous quota for this year itself already being double last year's with the populace buying gold and silver as a hedge against the onset of inflation there.
More Here..
Financial Crisis – Evolution Of The Financial Bubble That Led To The Global Crisis Discussed
Posted by Blake Hartman
Financial analyst sorts out fantasy from reality regarding America’s financial meltdown
The collapse of the U.S. stock and housing markets and the subsequent credit crisis have left many Americans asking how it could have happened. However, to understand how the collapse happened, says financial analyst and author Emily Eisenlohr, one must first understand how the huge systemic bubble that led to the collapse was built. Fairy Tale Capitalism: Fact and Fiction Behind Too Big To Fail (published by AuthorHouse) outlines the evolution of the financial bubble and brings simple perspective to a seemingly daunting question.
Fairy Tale Capitalism presents a brief history of how the biggest banks became ‘Too Big to Fail’. The book peels away the fictions and presents the facts. Although reforming the financial sector may be complex, understanding how systemic risk grew is rather simple. Fairy Tale Capitalism puts the puzzle together one piece at a time.
More Here..
Financial analyst sorts out fantasy from reality regarding America’s financial meltdown
The collapse of the U.S. stock and housing markets and the subsequent credit crisis have left many Americans asking how it could have happened. However, to understand how the collapse happened, says financial analyst and author Emily Eisenlohr, one must first understand how the huge systemic bubble that led to the collapse was built. Fairy Tale Capitalism: Fact and Fiction Behind Too Big To Fail (published by AuthorHouse) outlines the evolution of the financial bubble and brings simple perspective to a seemingly daunting question.
Fairy Tale Capitalism presents a brief history of how the biggest banks became ‘Too Big to Fail’. The book peels away the fictions and presents the facts. Although reforming the financial sector may be complex, understanding how systemic risk grew is rather simple. Fairy Tale Capitalism puts the puzzle together one piece at a time.
More Here..
Trichet Says Risk Signals Are Flashing Red as Debt Crisis Threatens Banks
By Jeff Black and Gabi Thesing
European Central Bank President Jean-Claude Trichet said risk signals for financial stability in the euro area are flashing “red” as the debt crisis threatens to infect banks.
“On a personal basis I would say ‘yes, it is red’,” Trichet said late yesterday in Frankfurt after a meeting of the European Systemic Risk Board, referring to the group’s planned “dashboard” to monitor risks. “The message of the board is that” the link between debt problems and banks “is the most serious threat to financial stability in the European Union.”
More Here..
European Central Bank President Jean-Claude Trichet said risk signals for financial stability in the euro area are flashing “red” as the debt crisis threatens to infect banks.
“On a personal basis I would say ‘yes, it is red’,” Trichet said late yesterday in Frankfurt after a meeting of the European Systemic Risk Board, referring to the group’s planned “dashboard” to monitor risks. “The message of the board is that” the link between debt problems and banks “is the most serious threat to financial stability in the European Union.”
More Here..
Wednesday, June 22, 2011
The Great Financial Crisis: Scot-Free Culprits Expose Class Solidarity
By Farooque Chowdhury
Sacrosanct capitalism searches causes behind the Great Financial Crisis among individuals instead of in the system it owns and operates, and fails to nab the culprits, the individuals involved with the crisis. The act and the failure reiterate the fact mentioned many years ago: the entire capitalist system safeguards capital, and governing machines – finance regulatory, law enforcement or whatever it is – are not class-neutral. The failure to nab culprits, the system’s in-built friend-foe-within, signifies class solidarity of capital’s ruling machine.
Reports by the US governing system, and from media, an ideal sample for study, tell reality of class solidarity. Based on (and liberally quoted from) these reports the old pattern of failure and collaboration is reiterated: as class-tool, state’s first job is to defend dominating interests.
More Here..
Sacrosanct capitalism searches causes behind the Great Financial Crisis among individuals instead of in the system it owns and operates, and fails to nab the culprits, the individuals involved with the crisis. The act and the failure reiterate the fact mentioned many years ago: the entire capitalist system safeguards capital, and governing machines – finance regulatory, law enforcement or whatever it is – are not class-neutral. The failure to nab culprits, the system’s in-built friend-foe-within, signifies class solidarity of capital’s ruling machine.
Reports by the US governing system, and from media, an ideal sample for study, tell reality of class solidarity. Based on (and liberally quoted from) these reports the old pattern of failure and collaboration is reiterated: as class-tool, state’s first job is to defend dominating interests.
More Here..
The Truth About Bank Capital
Robert Teitelman
Joe Nocera in the New York Times has decided he's in favor of more bank capital. In his column, he makes this seem like his personal endorsement is necessary to push across the line what he calls "the most important reform moment since the financial crisis broke out three years ago. More important even than the wrangling over Dodd-Frank." Well, this falls within the pundit's right to hyperbole, as the headline on the column, "Banking's Moment of Truth," falls within the bounds of the headline writer's exaggeration exemption -- though the more I look at it, the more that "truth" bothers me. Personally, turning to the most important person in the world -- moi -- I would, if forced to take a stand, vote for higher capital standards for the big banks, though the question is not nearly as clear and straightforward as Nocera makes out. There's not a lot of "truth," or a lot of empirical economic evidence arrayed against any of this. There's intuition, gut feel, a sense that something must be done and lots of credentialed and noncredentialed opinions. Both Dodd-Frank and the bank capital standards are classic economically driven arguments that will be judged by future performance and consequences that, unfortunately, we have no way to predict. It's like voting for a president.
More Here..
Joe Nocera in the New York Times has decided he's in favor of more bank capital. In his column, he makes this seem like his personal endorsement is necessary to push across the line what he calls "the most important reform moment since the financial crisis broke out three years ago. More important even than the wrangling over Dodd-Frank." Well, this falls within the pundit's right to hyperbole, as the headline on the column, "Banking's Moment of Truth," falls within the bounds of the headline writer's exaggeration exemption -- though the more I look at it, the more that "truth" bothers me. Personally, turning to the most important person in the world -- moi -- I would, if forced to take a stand, vote for higher capital standards for the big banks, though the question is not nearly as clear and straightforward as Nocera makes out. There's not a lot of "truth," or a lot of empirical economic evidence arrayed against any of this. There's intuition, gut feel, a sense that something must be done and lots of credentialed and noncredentialed opinions. Both Dodd-Frank and the bank capital standards are classic economically driven arguments that will be judged by future performance and consequences that, unfortunately, we have no way to predict. It's like voting for a president.
More Here..
Taking the rap
Goldman Sachs has chosen Fabrice Tourre as its scapegoat for a catastrophic CDO deal, writes William Cohan.
Those hoping for a measure of justice for the Wall Street executives who brought us the financial crisis won't be finding it any time soon in the downtown Manhattan federal courtroom of Judge Barbara Jones.
What you'll find there instead is the continuation of the Securities and Exchange Commission's (SEC) ridiculous civil lawsuit against Fabrice Tourre, the Goldman Sachs executive director who, at age 28, shepherded to market in April 2007 Goldman's infamous synthetic collateralised debt obligation, Abacus 2007-AC1. The deal was done at the behest of the hedge fund manager John Paulson (who made a bundle) and a pair of foolish European banks (who lost one).
More Here..
Those hoping for a measure of justice for the Wall Street executives who brought us the financial crisis won't be finding it any time soon in the downtown Manhattan federal courtroom of Judge Barbara Jones.
What you'll find there instead is the continuation of the Securities and Exchange Commission's (SEC) ridiculous civil lawsuit against Fabrice Tourre, the Goldman Sachs executive director who, at age 28, shepherded to market in April 2007 Goldman's infamous synthetic collateralised debt obligation, Abacus 2007-AC1. The deal was done at the behest of the hedge fund manager John Paulson (who made a bundle) and a pair of foolish European banks (who lost one).
More Here..
Zakaria: What Greece teaches the US
Editor's Note: The following is a transcript of a Q&A with Fareed Zakaria.
Amar C. Bakshi: What lessons do you draw from Greece's economic crisis?
The situation in Greece highlights for me how different America’s economic crisis is from Europe’s economic crisis.
America’s economic crisis is one that is actually economically soluble but politically very difficult to solve.
If we were to repeal the Bush tax cuts, we'd get $4 trillion of revenue over the next 10 years. If we were to enact Simpson-Bowles, we’d get $1.5 trillion by closing various tax loopholes. With a few simple economic decisions, we can solve America’s budgetary problem.
Now, of course, you have long-term healthcare costs to deal with. That’s a huge problem and I don’t pretend it isn't. But in every other respect you can bring down America’s budget deficit to what would be among the lowest levels of any Western country.
More Here..
Amar C. Bakshi: What lessons do you draw from Greece's economic crisis?
The situation in Greece highlights for me how different America’s economic crisis is from Europe’s economic crisis.
America’s economic crisis is one that is actually economically soluble but politically very difficult to solve.
If we were to repeal the Bush tax cuts, we'd get $4 trillion of revenue over the next 10 years. If we were to enact Simpson-Bowles, we’d get $1.5 trillion by closing various tax loopholes. With a few simple economic decisions, we can solve America’s budgetary problem.
Now, of course, you have long-term healthcare costs to deal with. That’s a huge problem and I don’t pretend it isn't. But in every other respect you can bring down America’s budget deficit to what would be among the lowest levels of any Western country.
More Here..
Bill Clinton's Legacy of Denial
Robert Scheer
Does Bill Clinton still not grasp that the current economic crisis is in large measure his legacy? Obviously that's the case, or he wouldn't have had the temerity to write a 14-point memo for Newsweek on how to fix the economy that never once refers to the home mortgage collapse and other manifestations of Wall Street greed that he enabled as president.
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Does Bill Clinton still not grasp that the current economic crisis is in large measure his legacy? Obviously that's the case, or he wouldn't have had the temerity to write a 14-point memo for Newsweek on how to fix the economy that never once refers to the home mortgage collapse and other manifestations of Wall Street greed that he enabled as president.
More Here..
Tuesday, June 21, 2011
ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
Garth Turner
But how can this be when the world is disintegrating, and nutbar sites like The Coming Depression keep soiling themselves in terrified anticipation?
Two days ago a friend emailed me in anguish. “Do you think the stock market is going to crash again? I’m getting that feeling. How can we be protected if it does?” Turns out he was sneaking into doomer web sites, where gold and silver pumpers scared the crap out of him.
In fairness, you don’t need slimy sites like The Economic Collapse to render you impotent and slobbery. The TV news or a daily paper is more than enough. Greece. US debt. Wars. Disasters, Riots. Falling markets. It’s all there waiting for the dots to be connected.
More Here..
But how can this be when the world is disintegrating, and nutbar sites like The Coming Depression keep soiling themselves in terrified anticipation?
Two days ago a friend emailed me in anguish. “Do you think the stock market is going to crash again? I’m getting that feeling. How can we be protected if it does?” Turns out he was sneaking into doomer web sites, where gold and silver pumpers scared the crap out of him.
In fairness, you don’t need slimy sites like The Economic Collapse to render you impotent and slobbery. The TV news or a daily paper is more than enough. Greece. US debt. Wars. Disasters, Riots. Falling markets. It’s all there waiting for the dots to be connected.
More Here..
Don't Get the Greek Financial Crisis? Read This
by Nicola Kean
The Greek financial crisis has been the most important economic story of the year—but what it actually means can be lost in breathless talk of defaults and loan tranches.
Luckily for those of us who aren’t keeping a close eye on the bond market or the price of the Euro, Reuters has put together a quick guide to the Greek crisis. The takeaway: Greece is on the verge of a Lehman Brothers-sized collapse.
So, why does it matter to the rest of the world? In short, if Greece defaults on its loans, a lot of European banks that hold the debt would suffe. The credit market would freeze—meaning banks may stop lending to each other. Not a positive thing for a global economy still in recovery.
More Here..
The Greek financial crisis has been the most important economic story of the year—but what it actually means can be lost in breathless talk of defaults and loan tranches.
Luckily for those of us who aren’t keeping a close eye on the bond market or the price of the Euro, Reuters has put together a quick guide to the Greek crisis. The takeaway: Greece is on the verge of a Lehman Brothers-sized collapse.
So, why does it matter to the rest of the world? In short, if Greece defaults on its loans, a lot of European banks that hold the debt would suffe. The credit market would freeze—meaning banks may stop lending to each other. Not a positive thing for a global economy still in recovery.
More Here..
A Thaw Before the Storm? How the Debt Ceiling Could Shock the U.S. Economy With Another "Lehman Moment"
Lawrence G. McDonald
Almost three years ago crushing debt brought Lehman Brothers, a 158-year-old investment bank to its knees. It was a bankrupctcy bigger than any our world has ever seen. Lehman's failure was 10 times the size of Enron. If fact, its demise was bigger than the spectacular failures of General Motors, Chrysler, Worldcom, Delta Airlines and Enron. Combined!
The event caused one of the most severe, heart stopping shocks to our global economy. The pain is still being felt (just ask the people of Greece) and will be for years to come. Within 4 months of Lehman's collapse the US economy lost more than 3 million jobs and the Dow Jones Industrial Average shedded more than 4,000 points. 401k's became 201k's, the wealth destruction was profound. Anyone reading these words felt it.
More Here..
Almost three years ago crushing debt brought Lehman Brothers, a 158-year-old investment bank to its knees. It was a bankrupctcy bigger than any our world has ever seen. Lehman's failure was 10 times the size of Enron. If fact, its demise was bigger than the spectacular failures of General Motors, Chrysler, Worldcom, Delta Airlines and Enron. Combined!
The event caused one of the most severe, heart stopping shocks to our global economy. The pain is still being felt (just ask the people of Greece) and will be for years to come. Within 4 months of Lehman's collapse the US economy lost more than 3 million jobs and the Dow Jones Industrial Average shedded more than 4,000 points. 401k's became 201k's, the wealth destruction was profound. Anyone reading these words felt it.
More Here..
The Financial Collapse Of Greece: The Canary In The Coal Mine For The Global Economy?
By Michael Snyder The Economic Collapse
The rest of the world needs to sit up and take notice of what is going on in Greece right now. This is what can happen when you allow government debt to spiral out of control. Once it becomes clear that you can't pay your debts, a financial collapse can happen very suddenly and you start losing your sovereignty to those that you must turn to for financial help. So is the financial collapse of Greece the "canary in the coal mine" for the global economy? EU finance ministers have given the Greek government two weeks from Monday to approve another round of brutal austerity measures. If the austerity measures are not approved, Greece will not receive the next bailout installment of 12 billion euros. If that happens, the whole globe better buckle up because it is going to get crazy.
July 3rd is the deadline. Basically the EU has put a gun to the head of the Greek government. Without this bailout money, Greece will default and economic hell will break loose all across the country.
More Here..
The rest of the world needs to sit up and take notice of what is going on in Greece right now. This is what can happen when you allow government debt to spiral out of control. Once it becomes clear that you can't pay your debts, a financial collapse can happen very suddenly and you start losing your sovereignty to those that you must turn to for financial help. So is the financial collapse of Greece the "canary in the coal mine" for the global economy? EU finance ministers have given the Greek government two weeks from Monday to approve another round of brutal austerity measures. If the austerity measures are not approved, Greece will not receive the next bailout installment of 12 billion euros. If that happens, the whole globe better buckle up because it is going to get crazy.
July 3rd is the deadline. Basically the EU has put a gun to the head of the Greek government. Without this bailout money, Greece will default and economic hell will break loose all across the country.
More Here..
Taibbi: U.S. Finances 'Similar' to Russian Politics
Ksenia Galouchko
Matt Taibbi, contributing editor at Rolling Stone, is known in the United States for his coverage of the financial crisis — he once memorably described Goldman Sachs as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money" — but in Russia, he is remembered for his time as editor of the satirical newspaper The eXile and by some at this paper for his brief period as a journalist at The Moscow Times.
The Moscow Times sat down with Taibbi in New York recently to chat about Russia's political future, his coverage of the financial crisis and being a reporter in Russia and the United States.
More Here..
Matt Taibbi, contributing editor at Rolling Stone, is known in the United States for his coverage of the financial crisis — he once memorably described Goldman Sachs as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money" — but in Russia, he is remembered for his time as editor of the satirical newspaper The eXile and by some at this paper for his brief period as a journalist at The Moscow Times.
The Moscow Times sat down with Taibbi in New York recently to chat about Russia's political future, his coverage of the financial crisis and being a reporter in Russia and the United States.
More Here..
What does the financial crisis have to do with Three Mile Island?
A lot, if one believes the Financial Times columnist and book author Tim Harford. For his book Adapt, he researched the parallels between security in engineering and security in financial markets. Harford singles out three main issues which put the stability of the financial markets in danger: complex structures of financial institutions, interconnectedness of financial institutions and a lack of control through regulators.
he more complex a financial institution, the more likely it is that risks will not be recognized until it is to late. Harford compares the meltdown of Lehman Brothers with the failing reactor at Three Mile Island in the United States. The reactor, he says, started overheating at 4 a.m. when knowledgeable personnel was absent, the control room was difficult to understand due to its impractical design and security systems reinforced the catastrophe rather than attenuating it.
More Here..
he more complex a financial institution, the more likely it is that risks will not be recognized until it is to late. Harford compares the meltdown of Lehman Brothers with the failing reactor at Three Mile Island in the United States. The reactor, he says, started overheating at 4 a.m. when knowledgeable personnel was absent, the control room was difficult to understand due to its impractical design and security systems reinforced the catastrophe rather than attenuating it.
More Here..
News Iceland's President Warns Alaska On Economic Collapse
Michelle Theriault Boots ANCHORAGE, Alaska
When towering financial institutions fail, an economy that can fall back on fish, energy, clean water and the human need for wild places will survive.
That’s what Iceland learned in the wake of its dramatic 2008 economic collapse, the country’s President Olafur Ragnar Grimsson told leaders in Anchorage on Monday.
Alaska should take note, he said.
“Future prosperity will not be based or sustained…by building big financial sectors,” he said. “It is an economy based on real resources: On energy, ocean, natural resources, as well as the capabilities of people.”
Grimsson addressed the Alaska World Affairs Council in Anchorage as part of a trip to talk about the future of the Arctic at the Arctic Imperative Summit.
A silver-haired, bespectacled scholar and politician, Grimsson hails from the remote western fjords region of Iceland – a land of mountains, ocean and tough winters, and the part of the country “most similar to Alaska,” he said.
More Here..
When towering financial institutions fail, an economy that can fall back on fish, energy, clean water and the human need for wild places will survive.
That’s what Iceland learned in the wake of its dramatic 2008 economic collapse, the country’s President Olafur Ragnar Grimsson told leaders in Anchorage on Monday.
Alaska should take note, he said.
“Future prosperity will not be based or sustained…by building big financial sectors,” he said. “It is an economy based on real resources: On energy, ocean, natural resources, as well as the capabilities of people.”
Grimsson addressed the Alaska World Affairs Council in Anchorage as part of a trip to talk about the future of the Arctic at the Arctic Imperative Summit.
A silver-haired, bespectacled scholar and politician, Grimsson hails from the remote western fjords region of Iceland – a land of mountains, ocean and tough winters, and the part of the country “most similar to Alaska,” he said.
More Here..
Monday, June 20, 2011
Last Breath. Why the Merkel/Sarkozy “Solution” to the European Debt Crisis Will Fail … Miserably
Jeffrey Sica
On June 3rd, 2009 German Chancellor, Angela Merkel, while addressing a crowd in Berlin, rebuked the European Central bank and counterparts in Britain for having gone too far in fighting the financial crisis, which may be laying the ground work for another major financial meltdown. Merkel said, “We must return together to an independent central bank policy and to a policy of reason, otherwise we will be in the same situation 10 years from now.” In other words, it was not the policy of the European Central bank or counterparts to “bail out” failing financial institutions or governments which acted recklessly with lending or borrowing money without justifiable means to repay. It was statements like these that earned Angela Merkel the title of the “Worlds Most Powerful Woman” by FORBES from 2006-2009.
More Here..
On June 3rd, 2009 German Chancellor, Angela Merkel, while addressing a crowd in Berlin, rebuked the European Central bank and counterparts in Britain for having gone too far in fighting the financial crisis, which may be laying the ground work for another major financial meltdown. Merkel said, “We must return together to an independent central bank policy and to a policy of reason, otherwise we will be in the same situation 10 years from now.” In other words, it was not the policy of the European Central bank or counterparts to “bail out” failing financial institutions or governments which acted recklessly with lending or borrowing money without justifiable means to repay. It was statements like these that earned Angela Merkel the title of the “Worlds Most Powerful Woman” by FORBES from 2006-2009.
More Here..
What makes the IMF think it's right about Greece?
The same economists who failed to predict the 2007 financial crash are still in the driving seat – and just as clueless in a crisis
When did the IMF learn about the economy?
That's what people around the world should be asking as the IMF presents its latest assessment of the fiscal and economic prospects for nations around the world last week. Much of the world remains mired in the worst downturn since the Great Depression; a downturn that the IMF totally failed to predict, as noted by the IMF's own Independent Evaluation Office.
This was not a minor mistake; this was a horrendous failing. It's comparable to the surgeon amputating the wrong leg or leaving his operating tools inside the patient. This is the sort of incredible mess-up that most people lose their jobs over and likely never find work again in the same field.
More Here..
When did the IMF learn about the economy?
That's what people around the world should be asking as the IMF presents its latest assessment of the fiscal and economic prospects for nations around the world last week. Much of the world remains mired in the worst downturn since the Great Depression; a downturn that the IMF totally failed to predict, as noted by the IMF's own Independent Evaluation Office.
This was not a minor mistake; this was a horrendous failing. It's comparable to the surgeon amputating the wrong leg or leaving his operating tools inside the patient. This is the sort of incredible mess-up that most people lose their jobs over and likely never find work again in the same field.
More Here..
Conquerors, Debt, Joblessness, and "The Crisis of the Third Century"
Lydia Fisher
Front page photos of the riots in Greece -- heartbreaking.
Everything traces back to human action. Positive constructive action leads to a good outcome. Likewise, the opposite is true.
If the financial crisis tells us anything, it's this. We moved away from person-to-person reciprocity and community orientation. We deconstructed boundaries for expedient profit. We see this in the making of the "Too Big to Fails" (the outcome of Glass-Steagall repeal which separated commercial banking from speculative investment banking) all the way down to the discarding of lending standards. No surprise, then, the devastating result.
I recently came across an article that made me think -- not much has changed.
More Here..
Front page photos of the riots in Greece -- heartbreaking.
Everything traces back to human action. Positive constructive action leads to a good outcome. Likewise, the opposite is true.
If the financial crisis tells us anything, it's this. We moved away from person-to-person reciprocity and community orientation. We deconstructed boundaries for expedient profit. We see this in the making of the "Too Big to Fails" (the outcome of Glass-Steagall repeal which separated commercial banking from speculative investment banking) all the way down to the discarding of lending standards. No surprise, then, the devastating result.
I recently came across an article that made me think -- not much has changed.
More Here..
The Nature of Money and our Monetary System
Johnny Silver Bear
(Editors Note: One of the perks of editing "the Bear" allows me to post my own rants. I originally published The Nature of Money in August, 2004.)
As the editor of the Silver Bear Cafe, I try to focus on the ramifications of world events. I try to understand how what's going on now will affect your pocketbook next week, next month, next year. It is my sole intent to help you consider the possibilities which will, in turn, help you prepare for your financial future.
One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"?
What is money? The whole point of money is suppose to be the provision of a convenient and liquid medium that can be exchanged for less liquid value. It is a go between. One strives to accumulate money so it can be exchanged for something else.
More Here..
(Editors Note: One of the perks of editing "the Bear" allows me to post my own rants. I originally published The Nature of Money in August, 2004.)
As the editor of the Silver Bear Cafe, I try to focus on the ramifications of world events. I try to understand how what's going on now will affect your pocketbook next week, next month, next year. It is my sole intent to help you consider the possibilities which will, in turn, help you prepare for your financial future.
One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"?
What is money? The whole point of money is suppose to be the provision of a convenient and liquid medium that can be exchanged for less liquid value. It is a go between. One strives to accumulate money so it can be exchanged for something else.
More Here..
Common Ground On Climate
Submitted by George Washington
Preface: I studied global warming in the 1980s at a top university. My environmental credentials are solid by any measure. I have no dog in the climate debate, other than to do what is best for the people and the planet.
The American people are deeply divided on climate change.
An April Rasmussen poll found:
When it comes to global warming, 47% of voters say climate change is primarily caused by long-term planetary trends. Thirty-six percent (36%) disagree and believe human activity is more to blame. Ten percent (10%) are undecided. While more voters have blamed planetary trends since January 2009, this is the widest gap between the two since July of last year.
There is a huge and perhaps unbridgeable gap between global warming activists and skeptics (using the terms the various groups themselves use). Each side continues to make arguments about how the other is uninformed, corrupt or plain stupid (just look at the comments to this article). Counter-productive measures are being contemplated, but we are too busy arguing to notice ... or to take effective action to demand something smarter.
Unless we agree on common ground and demand that our politicians take constructive actions, no positive policy changes will be made and - instead - ineffective or even harmful policies will be enacted.
A Window of Opportunity
A few weeks ago, one of the largest coronal mass ejections ever observed reinforced dire predictions by NASA and other government agencies that heightened solar activity in the next couple of years could knock out power grids throughout many parts of the world and lead to numerous nuclear meltdowns.
Many scientists were also worried that increased solar output could warm the Earth. As I wrote 5 years ago, after explaining in detail the affect of carbon dioxide on climate:
Scientists have also found that cosmic rays linked to global warming are increasing. The sun is simply getting hotter. Indeed, solar output has been increasing steadily ever since scientists have been able to measure it.
Not impressed yet? How about this: there is evidence of global warming on Pluto, on Mars, on Neptune's moon, and on Jupiter.
And guess what? The next "solar maximum" -- the 12-year peak of solar activity -- might be a really big one (see also this article).
However, just this week, scientists from the US Solar Observatory and the US Air Force Research Laboratory have discovered - to their great surprise - that the sun's activity is declining, and that we might experience the lowest solar output we've seen since 1645-1715. The Register describes it in dramatic tones:
What may be the science story of the century is breaking this evening.
More Here..
Preface: I studied global warming in the 1980s at a top university. My environmental credentials are solid by any measure. I have no dog in the climate debate, other than to do what is best for the people and the planet.
The American people are deeply divided on climate change.
An April Rasmussen poll found:
When it comes to global warming, 47% of voters say climate change is primarily caused by long-term planetary trends. Thirty-six percent (36%) disagree and believe human activity is more to blame. Ten percent (10%) are undecided. While more voters have blamed planetary trends since January 2009, this is the widest gap between the two since July of last year.
There is a huge and perhaps unbridgeable gap between global warming activists and skeptics (using the terms the various groups themselves use). Each side continues to make arguments about how the other is uninformed, corrupt or plain stupid (just look at the comments to this article). Counter-productive measures are being contemplated, but we are too busy arguing to notice ... or to take effective action to demand something smarter.
Unless we agree on common ground and demand that our politicians take constructive actions, no positive policy changes will be made and - instead - ineffective or even harmful policies will be enacted.
A Window of Opportunity
A few weeks ago, one of the largest coronal mass ejections ever observed reinforced dire predictions by NASA and other government agencies that heightened solar activity in the next couple of years could knock out power grids throughout many parts of the world and lead to numerous nuclear meltdowns.
Many scientists were also worried that increased solar output could warm the Earth. As I wrote 5 years ago, after explaining in detail the affect of carbon dioxide on climate:
Scientists have also found that cosmic rays linked to global warming are increasing. The sun is simply getting hotter. Indeed, solar output has been increasing steadily ever since scientists have been able to measure it.
Not impressed yet? How about this: there is evidence of global warming on Pluto, on Mars, on Neptune's moon, and on Jupiter.
And guess what? The next "solar maximum" -- the 12-year peak of solar activity -- might be a really big one (see also this article).
However, just this week, scientists from the US Solar Observatory and the US Air Force Research Laboratory have discovered - to their great surprise - that the sun's activity is declining, and that we might experience the lowest solar output we've seen since 1645-1715. The Register describes it in dramatic tones:
What may be the science story of the century is breaking this evening.
More Here..
Athens protests: Syntagma Square on frontline of European austerity protests
Aditya Chakrabortty in Athens guardian.co.uk
The area in the centre of the Greek capital is playing host to thousands of angry demonstrators.
Syntagma Square in Athens has become the central point for Greek protests against austerity measures. Photograph: Yannis Behrakis/Reuters
Athenians used to stop off at Syntagma Square for the shopping, the shiny rows of upmarket boutiques. Now they arrive in their tens of thousands to protest. Swarming out of the metro station, they emerge into a village of tents, pamphleteers and a booming public address system.
Since 25 May, when demonstrators first converged here, this has become an open-air concert – only one where bands have been supplanted by speakers and music swapped for an angry politics. On this square just below the Greek parliament and ringed by flashy hotels, thousands sit through speech after speech. Old-time socialists, American economists just passing through, members of the crowd: they each get three minutes with the mic, and most of them use the time alternatively to slag off the politicians and to egg on their fellow protesters.
More Here..
The area in the centre of the Greek capital is playing host to thousands of angry demonstrators.
Syntagma Square in Athens has become the central point for Greek protests against austerity measures. Photograph: Yannis Behrakis/Reuters
Athenians used to stop off at Syntagma Square for the shopping, the shiny rows of upmarket boutiques. Now they arrive in their tens of thousands to protest. Swarming out of the metro station, they emerge into a village of tents, pamphleteers and a booming public address system.
Since 25 May, when demonstrators first converged here, this has become an open-air concert – only one where bands have been supplanted by speakers and music swapped for an angry politics. On this square just below the Greek parliament and ringed by flashy hotels, thousands sit through speech after speech. Old-time socialists, American economists just passing through, members of the crowd: they each get three minutes with the mic, and most of them use the time alternatively to slag off the politicians and to egg on their fellow protesters.
More Here..
America flirts with a fate like Japan’s
By Clive Crook
The stalling of the US recovery raises big, scary questions. After a recession, this economy usually gets people back to work quickly. Not this time. Progress is so slow, the issue is not so much when America will return to full employment but what “full employment” will mean by the time it does.
The administration thinks the pace of recovery will pick up soon. Last week President Barack Obama called the pause a “bump in the road”. Others think the slowdown will persist and might get worse, fears that cannot be dismissed. One alarming possibility is that the traits the US has relied on to drive growth in the past – labour market flexibility, rapid productivity growth – might have become toxic. If the US is unlucky, traits seen as distinctive strengths are now weaknesses, and a “lost decade” of stagnation, like Japan’s in the 1990s, might lie ahead.
More Here..
The stalling of the US recovery raises big, scary questions. After a recession, this economy usually gets people back to work quickly. Not this time. Progress is so slow, the issue is not so much when America will return to full employment but what “full employment” will mean by the time it does.
The administration thinks the pace of recovery will pick up soon. Last week President Barack Obama called the pause a “bump in the road”. Others think the slowdown will persist and might get worse, fears that cannot be dismissed. One alarming possibility is that the traits the US has relied on to drive growth in the past – labour market flexibility, rapid productivity growth – might have become toxic. If the US is unlucky, traits seen as distinctive strengths are now weaknesses, and a “lost decade” of stagnation, like Japan’s in the 1990s, might lie ahead.
More Here..
Sunday, June 19, 2011
Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15
Submitted by Tyler Durden
One small step toward Executive Order 6102 part 2, and one giant leap for corruptcongressmankind.
From: FOREX.com
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx
Important Account Notice Re: Metals Trading
We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.
In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.
We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.
We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.
Sincerely,
The Team at FOREX.com
So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.
It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."
More Here..
One small step toward Executive Order 6102 part 2, and one giant leap for corruptcongressmankind.
From: FOREX.com
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx
Important Account Notice Re: Metals Trading
We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.
In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.
We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.
We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.
Sincerely,
The Team at FOREX.com
So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.
It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."
More Here..
UK banks abandon eurozone over Greek default fears
By Harry Wilson
UK banks have pulled billions of pounds of funding from the eurozone as fears grow about the impact of a “Lehman-style” event connected to a Greek default.
Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.
Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.
http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-abandon-eurozone-over-Greek-default-fears.html
More Here..
UK banks have pulled billions of pounds of funding from the eurozone as fears grow about the impact of a “Lehman-style” event connected to a Greek default.
Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.
Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.
http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-abandon-eurozone-over-Greek-default-fears.html
More Here..
48 Percent Of Americans Believe Another Great Depression Is Likely In The Next 12 Months – 19 Reasons Why They Are Not Completely Crazy
Do you believe that the U.S. economy is steamrolling toward a depression? If so, you are not alone. According to a recent CNN poll, 48 percent of Americans believe that "another Great Depression" is likely within the next 12 months. Americans have been waiting for almost three years for a "recovery" to materialize, but instead there are all kinds of signs that the economy is about to get worse yet again. Inflation is rising but wages are not. There are millions of Americans that would do just about anything to get a decent job. The "misery index" is the highest it has been in almost 30 years. All of the recent polls show that the American people are more pessimistic about the economy than at any other time in recent memory. World financial markets are incredibly unstable right now and many analysts are expecting a repeat of 2008 (or worse). Meanwhile, our state and local governments are drowning in debt, the federal government is drowning in debt and governments all over Europe are drowning in debt. No, it is not crazy for 48 percent of Americans to believe that we are about to go into another Great Depression.
More Here..
Saturday, June 18, 2011
The Federal Debt Elevator: Going Up
by Gary North
If you think the Federal debt ceiling is anything but an elevator, I've got news for you.
Maybe you saw the story about the Air Force airlift of $12 billion in unmarked bills that landed in Iraq sometime between 2003 and 2004 – no one seems sure just when. The story was written by a Los Angeles Times reporter and published on January 13.
Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $2.4 billion in shrink-wrapped bricks of $100 bills. They sent an initial full planeload of cash, followed by 20 other flights to Iraq by May 2004 in a $12-billion haul that U.S. officials believe to be the biggest international cash airlift of all time.
There was a slight glitch in the execution of the plan. Some $6.6 billion of this – three fully loaded planes full – has gone missing.
The story was picked up by the Web, but got little play in the mainstream media. The Huffington Post and Fox News reported it, but not the other major media. The fact that several plane loads of shrink-wrapped $100 bills are unaccounted for is not big news in the minds of America's mainstream editors. A search on Google reveals how little mainstream media interest there was.
More Here..
If you think the Federal debt ceiling is anything but an elevator, I've got news for you.
Maybe you saw the story about the Air Force airlift of $12 billion in unmarked bills that landed in Iraq sometime between 2003 and 2004 – no one seems sure just when. The story was written by a Los Angeles Times reporter and published on January 13.
Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $2.4 billion in shrink-wrapped bricks of $100 bills. They sent an initial full planeload of cash, followed by 20 other flights to Iraq by May 2004 in a $12-billion haul that U.S. officials believe to be the biggest international cash airlift of all time.
There was a slight glitch in the execution of the plan. Some $6.6 billion of this – three fully loaded planes full – has gone missing.
The story was picked up by the Web, but got little play in the mainstream media. The Huffington Post and Fox News reported it, but not the other major media. The fact that several plane loads of shrink-wrapped $100 bills are unaccounted for is not big news in the minds of America's mainstream editors. A search on Google reveals how little mainstream media interest there was.
More Here..
Greenspan: The 'almost certain' Greece default could cause US double-dip
by Nyree Stewart Magazine: Investment Adviser Published Friday , June 17, 2011
A default by Greece could drive the US back into recession, according to the former Federal Reserve chairman Alan Greenspan.
In an interview with Bloomberg Mr Greenspan said the "chances of Greece not defaulting are very small".
His comments came as Greece’s prime minister George Papandreou's failed to win support for more austerity measures to help address its debt problems.
Mr Greenspan told Bloomberg the chances of Greece defaulting are now "so high that you almost have to say there’s no way out," which could put pressure on some US banks.
He argued Greece's debt crisis had the potential to push the US into another recession, as without it the probability of a recession "is quite low".
More Here..
A default by Greece could drive the US back into recession, according to the former Federal Reserve chairman Alan Greenspan.
In an interview with Bloomberg Mr Greenspan said the "chances of Greece not defaulting are very small".
His comments came as Greece’s prime minister George Papandreou's failed to win support for more austerity measures to help address its debt problems.
Mr Greenspan told Bloomberg the chances of Greece defaulting are now "so high that you almost have to say there’s no way out," which could put pressure on some US banks.
He argued Greece's debt crisis had the potential to push the US into another recession, as without it the probability of a recession "is quite low".
More Here..
THE REVOLUTION HAS BEGUN!!Dramatic ground shots of Athens riots, mass scuffles in Greece
Crazy Greek riots not shown on mainstream news in the UK
Changing Tides: Research Center Under Fire for 'Adjusted' Sea-Level Data
Published June 17, 2011 By Maxim Lott
Is climate change raising sea levels, as Al Gore has argued -- or are climate scientists doctoring the data?
The University of Colorado’s Sea Level Research Group decided in May to add 0.3 millimeters -- or about the thickness of a fingernail -- every year to its actual measurements of sea levels, sparking criticism from experts who called it an attempt to exaggerate the effects of global warming.
"Gatekeepers of our sea level data are manufacturing a fictitious sea level rise that is not occurring," said James M. Taylor, a lawyer who focuses on environmental issues for the Heartland Institute.
More Here..
Is climate change raising sea levels, as Al Gore has argued -- or are climate scientists doctoring the data?
The University of Colorado’s Sea Level Research Group decided in May to add 0.3 millimeters -- or about the thickness of a fingernail -- every year to its actual measurements of sea levels, sparking criticism from experts who called it an attempt to exaggerate the effects of global warming.
"Gatekeepers of our sea level data are manufacturing a fictitious sea level rise that is not occurring," said James M. Taylor, a lawyer who focuses on environmental issues for the Heartland Institute.
More Here..
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