1) Half of all workers made less than $26,364, the median wage in 2010. That means the typical wage is at its lowest level since 1999, after adjusting for inflation.
2) The number of millionaires increased by about 20 percent.
3) The size of the missing workforce is 10 million. The number of working people fell by 5.2 million since 2007. But that's not the entire job deficit, because, based on population growth estimates, 4.5 million more would have joined the workforce between 2007 and 2011. Add it up, and you get a 10-million-worker gap.
What you see in the graph above is that median pay took a nosedive after 2007, effectively wiping out all gains made in the previous eight years. The macro explanation is that the economy shrunk, and middle class jobs disappeared and were replaced with (or outlasted by) lower-paying positions that companies kept on. But the economy isn't one giant corporation. It's thousands of giant, medium-sized, and small companies in industries that lived through very different recessions. Here's a look at pay on an industry-by-industry level from our friends at PayScale.
The besieged housing market has even further to fall before home prices really hit rock bottom.
The misery index--the sum of the country's inflation and unemployment rates--rose last month to a 28-year high as Americans struggled with rising inflation and high unemployment.
The last time the misery index was at current levels was in 1983.
My food inflation is closer to 10%. It depends on what you eat. For example, from the report:
Meats, poultry and fish +6%
Fresh vegetables +5%
Cooking oils +7.5%
These items are all well above the average set by the USDA. The following kept the index low:
Processed vegetables +1.5%
A University of Zurich study 'proves' that a small group of companies - mainly banks - wields huge power over the global economy.
The study is the first to look at all 43,060 transnational corporations and the web of ownership between them - and created a 'map' of 1,318 companies at the heart of the global economy.
The study found that 147 companies formed a 'super entity' within this, controlling 40 per cent of its wealth. All own part or all of one another. Most are banks - the top 20 includes Barclays and Goldman Sachs. But the close connections mean that the network could be vulnerable to collapse.
BEVILACQUA BOMBSHELL - Massachusetts Supreme Court Rules That MOST Foreclosure Sales From Previous 5 Years Are NULL & VOID
This is HUGE news.
In essence, the ruling upheld that those who had purchased foreclosure properties that had been illegally foreclosed upon (which is virtually all foreclosure sales in the last five years), did not in fact have title to those properties. Given the fact that more than two-thirds of all real estate transactions in the last five years have also been foreclosed properties, this creates a small problem.
The Massachusetts SJC is one of the most respected high courts in the country, other supreme courts look to these decisions for guidance, and would find it difficult to rule any other way in their own states.
Massachusetts Sussex County Calling for HALT of ALL FORECLOSURES - Attorney General Coakley SUING BANKS for Wrongful Foreclosures in the State of Mass. Why are the other AG's in U.S. going to allow Lawlessness from Banks?!
John O'Brien the register of deeds in Sussex County in Massachusetts is calling for a HALT OF ALL FORECLOSURES due to the Mass Supreme Court ruling on the 18th of Oct.
He also states "PEOPLE SHOULD THINK TWICE ABOUT BUYING A FORECLOSURE!"
Attorney General Martha Coakley is SUING THE BANKS FOR FRAUDULENT FORECLOSURES IN THE STATE OF MASSACHUSETTS.
My question is.... if the AG of Mass can see the banks committed FRAUD how come all the other AGs in the U.S. are overlooking all the FRAUD?! How come the AGs of the U.S. are NOT STANDING BY THE LAW? How come the AG's of the U.S. who are suppose to UPHOLD the Law of the States are going to NOT STAND BY THE PEOPLE BUT STAND BY THE BANKS?!
banks, which are currently being protested worldwide, will have
their greedy fat fingers in every single transaction that takes
And second hand goods? Many people buy second hand goods because
they can't afford to buy them new, because they're poor. Many of us
are becoming poorer everyday, which is also why more and more of us
are SELLING our used goods.
It may become a new form of discrimination against people without
checking accounts, debit cards, or credit cards. Believe me, they
want every last one of us in that system, and they want it bad.
The U.S. M2 money supply has averaged a weekly increase of $50.45 billion over the past four weeks. The M2 money supply is now 2.23% higher than it was four weeks ago, for an annualized rate of growth of 29%. This proves our point that we don’t need to see an immediate QE3 in order for the money supply to grow. The Fed can simply take measures in order to force banks to lend their $1.6 trillion in excess reserves currently parked at the Fed, and that by itself could lead to a massive U.S. price inflation crisis.
With gold and silver blasting higher, along with the mining shares, as the Dow plunged over 200, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the tremendous action in both gold and silver, Hathaway replied, “Get used to it, we are going to see $50 and $100 days both ways. To me we have had our correction, shook out a lot of people and now there is sellers remorse. Now those people are not able to get back in except by paying a higher price, so this is classic bull market action.”
Goldman Sachs Group Inc lost $428 million during the third quarter, only its second quarterly loss as a public company, hurt by sharp declines in the value of investment securities and customer trading assets.
Je vais devoir répondre sur l'émission à ce commentaire, car je trouve
difficile de répondre par courriel à des conjonctures et des spéculations
enchevêtrés avec des éléments de la réalité. C'est trop long pour faire
les nuances et expliquer ce qui me dérange dans ce type d'analyse.
As the economy sours, food prices continue to rise, and more people find themselves out of work, it is becoming increasingly difficult to put food on the table. This is evidenced by the record numbers of Americans on food stamps with supplemental nutritional assistance program participation rates quickly approaching 50 million people.
Growing Income Gap May Leave U.S. More Vulnerable to Crisis
October 13, 2011, Bloomberg/Businessweek
A widening gap between rich and poor is reshaping the U.S. economy, leaving it more vulnerable to recurring financial crises and less likely to generate enduring expansions. Left unchecked, the decades-long trend toward increasing inequality may ... shake social stability, economists and financial-industry executives say. “Income inequality in this country is just getting worse and worse and worse,” James Chanos, president and founder of New York-based Kynikos Associates Ltd., told Bloomberg Radio this week. “And that is not a recipe for stable economic growth when the rich are getting richer and everybody else is being left behind.” Since 1980, about 5 percent of annual national income has shifted from the middle class to the nation’s richest households. That means the wealthiest 5,934 households last year enjoyed an additional $650 billion -- about $109 million apiece -- beyond what they would have had if the economic pie had been divided as it was in 1980, according to Census Bureau data. Disputes over what constitutes economic fairness are moving to center stage amid a near-stagnant U.S. economy saddled with 9.1 percent unemployment yet boasting record corporate profits.
Note: For key reports from major media sources on income inequality in the US and worldwide, click here.
BREAKING - France And Germany Reach Agreement On $2.8 Trillion European Bailout Fund, EU Diplomats SayUK Guardian
As large as the figure sounds, it might not be enough, and France can now officially kiss their AAA rating goodbye., according to one think tank who stated that almost $6 trillion will be needed.
German Chancellor Angela Merkel's spokesman dampened expectations today that a coming weekend EU meeting will solve the European debt crisis, warning it is only a step on a long road.
By Robert Reich
The fact no one seems to know Morgan Stanley's exposure to European banks or derivatives – or that of most other giant Wall Street banks – shows Dodd-Frank didn’t go nearly far enough. Regulators still don’t know what’s happening on the Street. They have no clear picture of the derivatives exposure of giant U.S. financial institutions.
Which is why Washington officials are terrified – and why Treasury Secretary Tim Geithner keeps begging European officials to bail out Greece and the other deeply-indebted European nations.
BofA reported earnings this morning. If you annualize the numbers, that's $25 billion in profit for 1 year.
> De : Stéphane POUTOIRE [mailto:firstname.lastname@example.org]
> Envoyé : vendredi 7 octobre 2011 12:03
> À : 'email@example.com'
> Objet : Le parlement Européen sur le modèle de la Tour de Babel
> Bonjour François,
> Je cherche depuis plusieurs semaines déjà à comprendre ce qui a pu pousser
> les bâtisseurs de l’Europe à construire le Parlement Européen sur le
> de la Tour de Babel de Bruegel, surtout lorsque l’on constate que vu de
> dessus cette tour de Babel est entourée par des bâtiments eux-mêmes en
> de pyramide avec œil d’Horus (voir pièces jointes pour te remettre en
> mémoire là ou l’on retrouve cette fameuse pyramide).
> Et avec la crise de la dette des pays Européens et la chute du système
> bancaire de la zone Euro, je pense pouvoir poser ma conclusion :
> L’Europe et l’Euro ont été mis en place uniquement pour que, lorsque le
> système économique américain (qui dès ses origines est un système amener à
> exploser) va s’effondrer définitivement, il puisse être dit que c’est de
> faute aux états Européens.
> 1) Création du système capitaliste voué à l’échec dès ses origines.
> 2) Création de l’Europe et de l’Euro avec pour seul but de mettre en
> place l’arnaque de la dette.
> 3) Effondrements planifié des banques Européennes
> 4) Effondrements du capitalisme US pour cause d’effondrement de
> 5) Les USA envahissent l’Europe pour récupérer ce que nous leur
> (soit disant) en mettant la main sur nos pays et nos économies.
> 6) Guerre mondiale par entrée de la Russie et de la Chine qui ne
> laisseront pas les USA prendre une place sur le continent Européen.
> Conclusion : L’Europe et l’Euro ont été mis en place uniquement pour
> justifier la future invasion du continent Européen par les USA.
> Ton avis ?
The proposal, put forward by Herman Van Rompuy, the European Council president, would be the clearest sign yet of a new “United States of Europe” — with Britain left on the sidelines.
The plan comes as European governments desperately trying to save the euro from collapse last night faced a new bombshell, with sources at the International Monetary Fund saying it would not pay for a second Greek bail-out.
The global financial system is on the edge of a new credit crunch as the cost of insuring the bonds of banks across the world hits new highs, analysts have said.
Which is why we need alternative money systems right now!
If Europe should fail this is what we can expect to happen – European banks will crash and burn and take down major US banks, which are already walking wounded basket cases anyway. We are likely to see a lengthy unscheduled "bank holiday" – banks will slam their doors and if your money is still inside their vaults then you are out of luck. Major disruptions in supply and distribution of food and fuel in particular will trigger general panic, and riots and mob violence will spread rapidly – what we have seen on TV happening in Greece will suddenly happen on the streets of the US and many other countries.
Make sure that you have additional storable food on hand; bleach with which to purify water; extra medications for yourself, your loved ones, and your pets, and a well-equipped first aid kit.
If the excrement hits the ventilation shaft, and you find yourself in an area where unrest is about happening (particularly if you live in high density urban areas), have a plan for how to reconnect with loved ones.
Have a "bug-out" kit in your car, to be able to get to a place of safety.
Make sure you have reliable communication with you, and a long-range, two-way radio may well be the way to go, if for some reason land-line and cell phone communication is disrupted.
Find a small group of people you can rely on and trust to work with, collaboratively, to work with through the immediate emergency.
Should some of these events happen, planning, not panic, will be what will ultimately pay off in terms of your survival.
Do you want to know the real reason banks aren't lending and the PIIGS have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller.
The four banks in question: JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and Goldman Sachs Group Inc. (NYSE: GS).
Most people have no idea that Wall Street has become a gigantic financial casino. The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end.
The word “derivatives” sounds complicated and technical, but understanding them is really not that hard. A derivative is essentially a fancy way of saying that a bet has been made.
Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever seen before. Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion.
Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That's Set to Explode
Do you want to know the real reason banks aren't lending and the PIIGS have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure; Is Morgan Stanley Sitting On An FX Derivative Time Bomb?
The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure.
And that's your definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high and up $5.3 trillion from Q1 as they have to risk ever more in the derivatives market to generate that incremental penny of return.
I don't think I could pay that much in taxes even if I worked 2 jobs and lived for 5,000 years.
This story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.
This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input. You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.
What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.
Is there any clearer indication that Obama does not support the 99%, but only the 1%?!? Ladies and gentlemen, this swindle cannot make it any more clear who and what Obama supports, and I guarantee you, it is NOT We the People.
Europe’s banks face a $7 trillion lending contraction to bring their balance sheets in line with the US and Japan, threatening to trap the region in a credit crunch and chronic depression for a decade.
Fortune 500 has issued a list of S&P 500 companies along with their 2010 financial details. Along with American billionaires and millionaires, the 500 companies are believed to form a main part of the “One Percent” rich in America. Recent anti-Wall Street protesters blame the One Percent for their desperate economic situation.
Who is the One Percent in America?
The following are the largest full-service global investment banks which usually provides both advisory and financing banking services, as well as the sales, market making, and research on a broad array of financial products including equities, credit, rates, currency, commodities, and their derivatives.
American workers are now three times more likely than Chinese workers to lack the means of feeding their families, according to a startling new report from the Gallup organization. The polling group found that 19 percent of Americans worried about being able to feed themselves or their families, compared to only 6 percent of Chinese.
Greece's two main unions, representing about half of the four million-strong workforce, have promised one of the biggest strikes, intensifying resistance to more austerity cuts.
That is what the Greek people are really angry about. The Greek government has decided to solve its own fiscal stupidity in signing onto the ECB by declaring all future generations of the Greek people to be slaves, who will be forced to redeem government debts with unpaid labor.
And if you still have not figured it out, this is also true of the United States where US Government-issued Treasuries are essentially promises to confiscate work product from future generations of Americans to give to the private central bankers.
"Land of the free?"
The United States is a nation of 330,000,000 slaves and their descendants, whose future forced slave labor is the only backing the Federal Reserve notes actually have.
This is why the Wall Street boys are so terrified of OccupyAMERICA, because as soon as the rest of the world's investors understand the message that We The People do not accept that indentured servitude and will not pay for Wall Street crimes, trillions in foreign investments will vanish from Wall Street in the blink of an eye.
Citigroup agreed to pay $285 million to settle a civil fraud complaint that it misled investors in a $1 billion derivatives deal tied to the United States housing market, then bet against the investors as the housing market began to show signs of distress, the Securities and Exchange Commission said Wednesday.
Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here
#1 George Soros: “Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation.”
#2 PIMCO CEO Mohammed El-Erian: “These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy.”
#3 Attila Szalay-Berzeviczy, global head of securities services at UniCredit SpA (Italy’s largest bank): “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits.”
#4 Stefan Homburg, the head of Germany’s Institute for Public Finance: “The euro is nearing its ugly end. A collapse of monetary union now appears unavoidable.”
#5 EU Parliament Member Nigel Farage: “I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine.”
#6 Carl Weinberg, the chief economist at High Frequency Economics: “At this point, our base case is that Greece will default within weeks.”
#7 Goldman Sachs strategist Alan Brazil: “Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?”
#8 International Labour Organization director general Juan Somavia recently stated that total unemployment could “increase by some 20m to a total of 40m in G20 countries” by the end of 2012.
#9 Deutsche Bank CEO Josef Ackerman: “It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels.”
#10 Alastair Newton, a strategist for Nomura Securities in London: “We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis”
#11 Ann Barnhardt, head of Barnhardt Capital Management, Inc.: “It’s over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken.”
#12 Lakshman Achuthan of ECRI: “When I call a recession…that means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but it’s not going to stop.”
The US Government is already looking for a scapegoat, which right now is Greece and all of Europe, for reasons I have already made clear. There is no 11th marble. And under a system of private central banks issuing all currency as interest-bearing loans, everything banks and governments do to "fix" the debt only creates more debt. That is why trying to fix the European crisis was hopeless to start with, basically trying to save a sinking boat with 11 holes and only ten corks. No matter how you move the corks from hole to hole, the water still pours in and floods the entire structure. Watertight bulkheads might have saved that boat, but the globalist money-junkies chopped out the bulkheads to make movement around the boat much easier. Now we see their terrible folly and the worst part is that the money-junkies still refuse to admit that their economic system was fatally flawed from the start, and desperately seek a scapegoat to blame it all on.
Which is why this "Anonymous" threat to DDOS the New York Stock Exchange on the 10th is highly suspect.
Final note: By now the money-junkies are already scheming on how to use the collapse of the current private banking system to force a new and larger and even more tyrannical private central bank on the entire world at once. Common sense has to tell you that this permanently institutionalizes slavery on a planetary scale. There will be nowhere to move to that is free of the private bankers. Debt cannot be solved with more debt. And given that globalism is what allowed Wall Streets mortgage-backed security fraud to poison the economies of most of the nations of the world, more globalism will not correct the problem.
It is time to tell the globalists to go to hell right alongside the private bankers. Buildings are protected by fireproof doors, and ships kept sinking by watertight bulkheads. The Earth needs national borders to keep humankind safe and protected from the greed and folly of national leaders.
Remember, the other side likes to play dirty!
UPDATE: This threat of a DDOS attack on the NYSE has been exposed as a hoax. Anonymous released a statement that the video is not from them. Anonymous (nor anyone else) can shut down the NYSE next Monday because next Monday is a holiday and the stock markets will be closed.
The jury is in and the data don't lie.
Banks hate inexpensive housing. If people can buy a home for the price of a car and then pay it off over five years, then the house is of no more use to the banks. The goal of the banks is to have people always have to work their entire working life to pay for their house, thirty years or more.
So banks work to keep home prices high, to keep you slaves to their mortgages. and now they are destroying perfectly good homes to create an artificial shortage to drive prices back up.
Economic Apocalypse Goes Mainstream: Meltdown In Two To Three Weeks; It Will Spread Everywhere; Most Serious Financial Crisis Ever; Worse Than Great Depressionhttp://www.dailymail.co.uk/news/article-2046471/Dozens-U-S-paratroopers-injured-mock-battle-Slovakians-goes-horrifically-wrong.html
Predictions of an economic apocalypse are no longer restricted to the realm of fringe doom and gloomers lurking in the dark corners of the internet.
As we’ve previously suggested uncertainty now pervades the social consciousness, not just in America, but the world over.
Every major media outlet in developed nations is now reporting on the headwinds facing the so-called recovery.
There is general agreement that European banks will need fresh capital well in excess of 100 billion euros ($133.8 billion) and it will likely come from a variety of sources, including the euro zone rescue fund, Ireland's finance minister said on Saturday.
Germany and France are split ahead of key talks on Sunday over how to strengthen shaky European banks. Paris is keen to tap the euro zone's 400 billion rescue fund, the EFSF, to recapitalize its own banks and Berlin is insisting the fund should be used as a last resort.
David Cameron has urged European leaders to take a “big bazooka” approach to resolving the eurozone crisis, warning they have just a matter of weeks to avert economic disaster.
Meanwhile, on Sunday, Angela Merkel, the German chancellor, and France’s President Nicolas Sarkozy spelt out their determination to defend the stability of the euro as they met for a bilateral summit in Berlin, though they refused to spell out details of their plans.
'We may need to print even MORE money', Bank of England economist warns just days after £75billion cashflow is sanctioned
The new eurozone bailout fund, the EFSF, may need to be as big as 4 trillion euros to assist banks, Daniel Gros, director of the Centre for European Policy Studies, has admitted – and senior officials are afraid to tell lawmakers, reports the FT.
Pardon while we chuckle, because $1 trillion, let alone $6 trillion, is never going to happen in Europe. Where do they plan to get the money, Euro Claus?
VIDEO - Mervyn King On Quantitative Easing 2.0 In The UK: "World Is Facing The Greatest Financial Crisis In History"
Very rare interview with the head of the Bank of England.
The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night.
BBC Does It Again: "In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks" - IMF Advisor
Bank of England injects £75bn into economy in bid to kick-start recovery as interest rates are held at record low again
The Bank of England injected a further £75billion into the economy today in a bid to jump-start the UK's flagging recovery.
Its Monetary Policy Committee (MPC) voted to boost its quantitative easing (QE) programme - effectively printing more cash - from £200billion to £275billion despite the risks it poses to the country's inflation rate.
Meanwhile, it maintained interest rates at 0.5 per cent.
The move - the first change to QE since November 2009 - offers the clearest signal yet that the Bank thinks Britain is on the brink of a double-dip recession.
So, the Bank of England has done more QE, implying that it thinks the banking sector may be about to collapse, inducing money stock contraction. The Chancellor has announced credit easing, implying that he thinks the banking sector may be about to collapse, meaning alternative lending routes would be useful. I guess we shall find out soon whether they are right.
"If they cannot address this [the sovereign debt crisis in Europe] in a credible way, I believe within perhaps two to three weeks, we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system.
We're not just talking about a relatively small Belgian bank, we're talking about the largest banks in the world. The largest banks in Germany, the largest banks in France that will spread to the UK in part through the sovereign debt problems in Ireland.
It will spread everywhere because the global financial system is so interconnected, all those banks are counterparties to every significant bank in the US and in Britain, and in Japan and around the world. This would be a crisis, in my view, more serious than the crisis in 2008."
"My view is that it is Germany that will have to pull out of the euro," Malmgren said at an investors' conference in London recently, according to the Citywire news website.
"The decision has already been made by the government that leaving the euro is a possibility. I think they have already got the printing machines going and are bringing out the old deutsche marks they have left over from when the euro was introduced."
I have read the rumors for a couple of weeks, now it is CONFIRMED!
Moneynews.com has confirmed - Germany is printing the Deutsche Mark very fast to be able to leave the Euro!
They see the writing on the wall. Once/if Germany leaves the Euro, it will drop like lead in value. Germany is the glue holding the currency together!
The return to real money is making swift gains as public distrust and uncertainty about the viability of fiat currencies continues to grow. And according to a recent report in Digital Journal, some countries, including China, are actually installing automated teller machines (ATM) that dispense gold bullion rather than paper currency.
The American dream of homeownership has felt its biggest drop since the Great Depression, according to new 2010 census figures released Thursday.
The analysis by the Census Bureau found the homeownership rate fell to 65.1 percent last year. While that level remains the second highest decennial rate, analysts say the U.S. may never return to its mid-decade housing boom peak in which nearly 70 percent of occupied households were owned by their residents.
As the grim toll of the financial crisis continues to mount around the world, many governments are looking for the true causes of the meltdown. In many cases, what they are discovering amounts to a crime.
That opened the floodgates for runaway financial speculation. Wall Street knew that if they made money they would be allowed to keep it, but if their investments lost money, the US Government would step in to transfer the losses to the American people, because that is what had been demonstrated during the S&L debacle of the 1980s.
Starting about in 2005, Wall Street started bundling mortgages together into investment bundles. The initial offerings were greeted with great success, and soon everybody wanted to get in this new "product." So great was the demand for Mortgage-backed Securities (MBS, also called Collateralized Debt Obligations) that Wall Street started running out of mortgages to front-load the system! This led to the creation of the "sub-prime" mortgage; granting mortgages to people who normally would not qualify. Congress, themselves invested in the Wall Street firms that were profiting from selling MBS, passed an $8000 first-time homebuyer tax credit (actually a loan repaid in future taxes) to lure more buyers in which helped front-load the process even faster. This sudden surge in new homebuyers increased demand and home prices skyrocketed! This made investors and homebuyers even more confident, demand for homes and MBS soared even higher and a genuine bubble was being formed.
Demand for MBS was so great that as the supply of available mortgages began to dwindle, brokers started taking 'shortcuts'. Bear Sterns was pledging the same mortgages into multiple investment bundles; a clear case of fraud. Other brokers were blending mortgages into the bundles that were already in foreclosure. As the returns from the MBS failed to materialize evidence surfaced that the earlier earnings had not been genuine, but were "ponzi" payoffs, using money collected from new investors to send dividends to older investors.
The whole scan started to unravel in 2008 and here is where things took a dark turn. Because Congress had their own fortunes invested in the companies at the heart of the fraud, Congress decided to prop up the scam with taxpayer money and block any efforts to investigate or prosecute. That is why TARP was passed by the Congress despite 90% popular opposition. Congress were saving themselves at the expense of the taxpayers. The phrase "toxic asset" was DC-speak for the fraudulent mortgages backed securities, which were being repurchased in order to avoid investors seeking to jail the Wall Street criminals, which would have brought all of Wall Street down. Despite claims that the US taxpayer would be refunded when the "Toxic Assets" were resold at some point in the future, the reality is that none of those assets will ever see a penny of repayment, because they are all the product of the biggest financial swindle in history. Bigger than Tulip mania. Bigger than the Great South Seas Company disaster.
Together with having to cover the credit default swaps sold with those mortgage backed securities, it is estimated that the swindle has cost the nation $27 trillion, at least $16 trillion admitted to by the Federal Reserve in "loans" and "bailouts" (actually buy-backs) from foreign investors such as Credit Suisse, Deutchebank, the Bank of Libya (boy, did THEY get hosed; 98% of their sovereign wealth fund destroyed by Goldman Sachs aka Gold In My Sacks!), etc. Globalism took a major crims n the US financial system and turned it into a global cataclysm from which we are all still reeling.
But while the "Too Big To Fail" banks were being bailed out by the US Government, smaller banks caught in the mess were struggling to stay solvent as cash poured out of their coffers to buy back all that bad paper they had sold to investors. Those monthly payments made by home-owners were not sufficient to cover the losses; the whole value of those homes needed to be returned to the banks' balance sheets to keep the banks technically solvent. So again, starting in 2008, Washington DC sent out a private message to banks and mortgage companies that DC would look the other way if foreclosures to home loans were "short-cutted." This kicked off the "Foreclosuregate" scandal in which phony foreclosure paper mills, bogus notaries, MERS were all used to facilitate a massive land grab from the American people. As Damon Slivers put it during Congress' hearings into the foreclosure mess, "We can have a realistic discussion of the foreclosure mess, or we can preserve the capital structure of the banks. We cannot do both. Which shall we do?"
In hindsight, it is obvious which choice the government made. We are seeing wealth confiscation, no different than when FDR confiscated the gold from the American people to save the banks, only this time, done in a covert way to trick Americans into thinking it was their own fault they lost their homes. But again, this was the result of official US policy which gave tax credits to corporations that actually encouraged offshoring of American jobs. In short, the US Government took their jobs to make it easer for the banks to take their homes, to save themselves from going to prison over the mortgage-backed securities fraud.
Iceland had the right solution. They tossed the crooked bankers in jail and fired the government that tried to loot the people to save those bankers and Iceland's economy is already on the rise. (Which is why you don't see much mention of them any more in the American media)
That is it in a nutshell!
Bloodied but defiant: 10,000 Greek strikers and police in running battles as debt-ridden country starts a 24-hour walkout
Video - Congressman Peter King (R-NY) with Laura Ingraham - Oct. 7, 2011
Runs 1 minute. The establishment protectors of corporate America and the Wall Street Kleptocracy are growing scared.
For Americans enduring rising unemployment and falling living standards, Capitol Hill seems out of touch. Thousands are joining demonstrations against poverty and corporate greed as the country struggles to deal with the ongoing economic crisis. The anti-Wall Street protests that have grown in New York over the past few weeks are spreading to other major cities, including the capital.
June, July and August 16.2%
However, Korea is getting crushed with the Kospi down 3.4%.
Australia's S&P/ASX 200 is down 2.1%.
GE Dumps Offshore Wind-Power Plans AFTER Collecting $125 Million In Stimulus From Taxpayers For Wind ProjectsThe details of this story are really, really, going to piss you off.
Best friends Obama and Immelt applaud as GE screws taxpayers once again.
Source - Gateway Pundit
GE was awarded 44 contracts totaling over $46,000,000 and 44 grants totaling more than$79,000,000 from the Obama-Pelosi $757 billion dollar stimulus package. Millions of dollars in stimulus funds were used by GE in green energy projects.
Today GE announced that it was going to gut its offshore wind-power plans.
Here comes Hugo Chavez demanding the return of 211 tons of Venezuelan gold from the criminal bankers of London and New York. Max Keiser said today that the Bank of England does not have the Venezuelan gold and will be forced to go into the markets and buy it at increasingly higher prices.
Hugo Chavez has sent the gold market into backwardation. That means that the price of physical bullion delivered today is worth more than a paper promise of a delivery at some future date.
-Bay Area foreclosure action heads back
-Filings in the Chicago area up 20pct
-Arizona had the third highest foreclosure rate in the nation
Fears of a deepening of Europe's debt crisis have prompted the world's leading central banks to pump US dollars into the financial system, in a co-ordinated action designed to boost market confidence.
The Bank of England joined the US Federal Reserve, the European Central Bank, the Swiss National Bank and the Bank of Japan on Thursday to announce that they would flood money markets with dollars over the coming months.
The debt markets have been warned.
A key rate setter-for China's central bank let slip – or was it a slip? – that Beijing aims to run down its portfolio of US debt as soon as safely possible.
"The incremental parts of our of our foreign reserve holdings should be invested in physical assets," said Li Daokui at the World Economic Forum in the very rainy city of Dalian – former Port Arthur from Russian colonial days.
"We would like to buy stakes in Boeing, Intel, and Apple, and maybe we should invest in these types of companies in a proactive way."
The Federal Reserve and the European Central Bank, in co-ordination with the Bank of England, Swiss National Bank and Bank of Japan announced a plan to offer three-month dollar loans to commercial banks in order to avoid a liquidity crisis in the euro zone banking system.
The problem is debt. Adding more debt will not solve that problem. Behind the debt is the real culprit; the 800 pound gorilla in the room nobody wants to talk about., which is that we are all enslaved to banking systems which by design produce more debt than money, making the debt trap impossible to escape and condemning the societies enslaved to those banks to ultimate collapse.
The only possible solution that will work is to dissolve the private central banks issuing the public currency at interest and to write off all that artificially created debt.
Anyone proposing any other solution is working for the bankers and needs a good thick coat of tar and feathers.
Meanwhile, these central banks pumping new dollars into Europe did not have those new dollars sitting around. They are simply created out of thin air, which means the value of the dollars already in your pockets declines as new dollars are poured into the system in Europe. Thus, inflation impoverishes you to please Europe's bankers.
"By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens." -- John Maynard Keynes
Payrolls fell in 30 U.S. states in August, led by New York and Georgia, while the jobless rate increased in 26, showing the slump in hiring is broad-based.
Will global financial markets reach a breaking point during the month of October? Right now there are all kinds of signs that the financial world is about to experience a nervous breakdown. Massive amounts of investor money is being pulled out of the stock market and mammoth bets are being made against the S&P 500 in October. The European debt crisis continues to grow even worse and weird financial moves are being made all over the globe. Does all of this unusual activity indicate that something big is about to happen? Let's hope not. But historically, the biggest stock market crashes have tended to happen in the fall. So are we on the verge of a "Black October"?
Numbers are from Bloomberg, and might surprise you.
Moody's Investor Service downgrades the credit ratings of Bank of America Corp, Wells Fargo & Co, and Citigroup Inc, amid worries over the lack of government support for major banks in case of crisis.
Identities of Silver Manipulators Exposed in Class Action Lawsuit Against JP Morgan Over Silver Price Manipulation
As discussed previously, all individual lawsuits against JP Morgan have been compiled into a single CLASS ACTION lawsuit filed in the US District Court of New York against JP Morgan for Silver price manipulation.
We have obtained a copy of the entire suit, which contains groundbreaking information publicly exposing JP Morgan's alleged manipulation of silver prices for all to clearly read for themselves.
Stocks rose sharply early Thursday after central banks in Europe and the U.S. announced a joint move to support European banks.
The European Central Bank, the U.S. Federal Reserve and three other central banks said Thursday they would provide European banks with dollars in three loan installments.
They print them up out of thin air!
So this "solution" that has Wall Street in such a tizzy is just a plan to further reduce the value of the dollars in your pocket to make the European bankers happy!
The bad news is we just moved one step closer to the day when nobody will even want dollars any longer!
Bangalore (Reuters) - Bank of America Corp officials have discussed slashing roughly 40,000 jobs during the first wave of a restructuring, the Wall Street Journal said, citing people familiar with the plans.
The number of job cuts are not final and could change. The restructuring aims to reduce the bank's workforce of 280,000 over a period of years, the Journal said.
BofA could not immediately be reached for comment by Reuters outside regular U.S. business hours.
Bank of America will cut about 30,000 jobs over the next few years in a bid to save $5 billion per year. The cost-cutting drive is part of a broader effort to reshape and shrink the nation's largest bank as it copes with fallout from the housing bust.
Bank of America Corp. is cutting 3,500 employees this quarter and working on restructuring plans that will ax several thousand more jobs, The Wall Street Journal and The New York Times reported citing people familiar with the situation.
This is the first lawsuit against BofA filed from Europe.
http://blogs.wsj.com/washwire/2011/09/0 ... tab/print/
The U.S. Senate, in an unusual procedure, cleared the way Thursday for the U.S. to lift its borrowing authority by $500 billion to $15.19 trillion, enough to keep the support federal government borrowing through late January or early February.
The action came under an unusual legislative procedure spelled out under the August agreement to raise the U.S. debt ceiling and avoid a U.S. credit default. In a 52-45 vote, the Senate blocked an attempt by Republicans to slow down the process that will result in the $500 billion debt-ceiling increase.
The Census Bureau’s annual report released Tuesday offers a snapshot of the economic well-being of U.S. households for 2010, when joblessness hovered above 9 percent for a second year. It comes at a politically sensitive time for President Barack Obama, who has acknowledged in the midst of a re-election fight that the unemployment rate could persist at high levels through next year….
Measured by total numbers, the 46 million now living in poverty is the largest on record dating back to when the census began tracking poverty in 1959. Based on percentages, it tied the poverty level in 1993 and was the highest since 1983.
In fact, the real unemployment figure is 22.8%, according to John Williams’ Shadow Stats. During the last Great Depression, the unemployment rate peaked at 25 percent in 1933.
The current boss of the Federal Reserve, Ben Bernanke, has admitted that the Federal Reserve engineered the Great Depression (and future Federal Reserve chairmans – if we don’t get rid of them – will probably admit the current Greatest Depression was created by the banksters).
Both unemployment and poverty are created by the fractional reserve system and its expansion of the money supply.
“Poverty can be caused by real economy, that is to say, by the lack of supply of real things,” writes economics professor Ahamed Kameel Mydin Meera.
It can also be caused by the monetary system. In a modern capitalist economy, the creation of abundance of money that accrues very unevenly in the hands of individuals can aggravate poverty. Milton Friedman, a well-known monetary economist, says that inflation is predominantly a monetary phenomenon. If this is the case, the worsening of the global poverty problem can be significantly pointed at the institutions that are responsible for the creation of fiat money.
In the United States, that institution – not federal, as claimed, but owned by a cartel of bankers – is the Federal Reserve.
Over the last decade, child poverty surged in 38 states and erased many of the gains in child well-being made in the last 20 years, according to a new report released Wednesday by the Annie E. Casey Foundation.
In most states, the federal government considers a family of four living on less than $22,350 a year "poor." According to the report, child poverty increased 18 percent between 2000 and 2009 and today shapes the lives of nearly 15 million children.
The findings are the latest in a series of studies that reveal the real impact of the recession on family-level finances in the country, including stagnating and declining wages during the 2000s. These sharp changes in individual financial security may ultimately influence the nation's future.
With diving stock markets likely to hit pension pots further and this week's £75bn QE extension announcement set to shrink annuity payouts, anyone planning to retire soon who hasn't got a final-salary pension faces a bleak financial future.
Peter McDonald, a partner in the pension practice at PwC, warned: "Compared to only three years ago, a money purchase pension is now worth perhaps 30 per cent less than it was."
Roughly 10.4 million mortgages, or one in five outstanding home loans in the U.S., will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman from Amherst Securities Group.
At the end of the second quarter, more than 2.7 million long-delinquent loans, others in foreclosure and REO properties sat in the shadow inventory, more than double what it was in the first quarter of 2010 (Click to expand the chart below). With the market averaging roughly 90,000 loan liquidations per month, it would take 32 months, nearly three years, to move through the overhang.
The days of the U.S. being top dog are about over! And we did it to ourselves.
With the internationalization of the RMB progressing on schedule, it is predicted that at least 40 percent of the trade volume of 2015, or about 100 million U.S. dollars, between China and Africa, which is equal to the total trade volume of 2010 between China and Africa, will be settled with RMB, according to the lasted research report issued in the beginning of September by the largest bank of Africa Standard Bank Group.
WASHINGTON (AFP) - The International Monetary Fund on Tuesday warned the US economy could remain weak for years to come, describing a recovery stalled amid unrelenting headwinds and in dire need of a push from government...
She is served by twenty-six attendants, including a hair dresser and make-up artist.
The annual cost to taxpayers for such unprecedented attention is approximately $1,750,000 without taking into account the expense of the lavish benefit packages afforded to every attendant.
Little did American voters realize the call for “change” would result in the establishment of an Obama oligarchy.
The discovery of the additional attendants was made by D’Angelo Gore of factcheck.org and by calls to Katie McCormick Lelyyeld, Michelle Obama’s press secretary.
Mr. Gore launched his investigation of the First Lady’s staff in the wake of an article that appeared on thelastcrusade.org and Canada Free Press on July 7.
The article, which became a chain letter viewed by millions of Americans, reported that Michelle Obama requires more than twenty attendants - - more than any First Lady in U.S. History. It provided the following list of White House staff members assigned to the First Lady:
As fires raged across central Texas for the past three days, local citizens sprang into action to protect their lives and property. Local churches opened their doors and began hosting refugees left homeless by the fires which have now destroyed more than 1,000 homes and 100,000 acres across the state in just the past week. Several branches of the YMCA also began hosting families with children, and a public school in Bastrop County opened its doors to serve as an emergency relief center.
See a YouTube video of a citizen's narrow escape around Highway 21 near Bastrop, Texas:
Federal agencies seize control on Tuesday
Under Gov. Rick Perry (R) this year, Texas slashed state funding for the volunteer fire departments that protect most of the state from wildfires like the ones that have recently destroyed more than 700 homes.
A coalition of socialist, labor and union organizations took to the streets of Rome Tuesday as part of a nationwide, general strike against proposed government austerity policies that organizers say hurt workers.
Money and Markets Is Greece going to default right now — THIS weekend?!The Greek finance ministry has given its officials instructions to deny, deny, deny!But Bloomberg reports that German Chancellor Angela Merkel is making contingency plans for possible 50% wipeout losses that could sink German banks if Greece defaults — even as soon as the next 72 hours.Whether it happens now or later is uncertain. But no matter when, the repercussions will undoubtedly be devastating — a global credit freeze that could dwarf the Lehman Brothers disaster of 2008.
"Here you can go a week without spending a single euro over here,” says a man who moved back to Crete two years ago to live in the village of his birth. “You get fresh food from your farm and if you need something extra, like olive oil for example, you can get it from a fellow farmer. You only need money to pay for your gas and bills,” he says...
U.S. stocks are plunging on fresh fears that Europe's debt crisis will tip the global economy back into recession.
The European Central Bank said Friday morning that a key official had resigned. The departure of the bank's top economist signaled that policymakers remain at odds over how to improve Europe's economy.
State prosecutors are offering big banks an expensive Get Out of Lawsuits Free card. Prosecutors have offered a variety of banks caught up in the “robosigning” scandal immunity from some litigation in exchange for a total of $10 billion to $25 billion in penalties, the Financial Times reports. Some officials think the immunity being offered is far too broad; as written, it could potentially free the banks from lawsuits related to their securitization practices, or at least impede cases related to it.
Motorists are STILL being ripped off at the pumps as filling stations fail to pass on falling petrol prices
Millions of motorists are being ripped off at the pumps as filling stations drag their feet over passing on falling petrol prices, a damning report reveals today.
While the wholesale cost of petrol has fallen by 3p a litre in the past week, drivers have seen only a 1p drop, according to the latest research by the AA.
And some major supermarkets – once seen as key drivers of price cuts - are just as guilty as the oil giants at keeping pump prices high while wholesale fuel prices fall, it notes.
The "Elite" 12 Unconstitutional "Super Congress" have already been Bought and Sold have gotten 64.5 Million from Wall Street and Special Interest Groups -
In total, the twelve members appointed to the Joint Select Committee on Deficit Reduction got nearly $64.5 million from special interests groups over the past decade, with legal firms donating about $31.5 million and Wall Street firms donating about $11.2 million.
Of that $11.2 million, Goldman Sachs, Citigroup, Bank of America and JPMorgan Chase donated approximately $2 million combined.
The members appointed to the committee are Sens. Pat Toomey (R-PA), Jon Kyl (R-AZ), Rob Portman (R-OH), Patty Murray (D-WA), John Kerry (D-MA), and Max Baucus (D-MT) and Reps. Jeb Hensarling (R-TX), Fred Upton (R-MI), Dave Camp (R-MI), Chris Van Hollen (D-MD), Xavier Becerra (D-CA), and Jim Clyburn (D-SC).
It must be nice to do whatever you want without having to get the approval of anyone else. The Federal Reserve and other major central banks around the world decided that lending big European banks gigantic piles of dollars would be a good idea, so they are just doing it. No debate, no votes and no democracy - they just tell us how things are going to be and that is that.
The Congress cannot overrule this decision. Neither can Barack Obama. Because it has so much power, many refer to the Federal Reserve as "the fourth branch of government", but unlike the other three branches of government, there are basically no significant "checks and balances" on the Federal Reserve.
European officials are working on a grand plan to restore confidence in the single currency area that would involve a massive bank recapitalisation, giving the bail-out fund several trillion euros of firepower, and a possible Greek default
The European Bank Run Has Begun – This Is What a Collapsing Global (Ponzi) Banking System Looks Like
Next time you come across someone still deluded enough to think that things will turn around economically, send them here. Stick this in your economic recovery propaganda pipe and smoke it:
One domino after another.
(Reuters) - Standard & Poor's cut Italy's credit rating on Tuesday in a surprise move that increased strains on the debt-stressed euro zone, and the International Monetary Fund said Europe's leaders were failing to act decisively enough to resolve the crisis.
Greece has been paralysed by another strike to protest against the latest austerity measures aimed at avoiding financial collapse.
The new round of belt-tightening is designed to secure an eight-billion euro emergency loan so government wages and bills can be paid. Without it, Greece will run out of money in mid-October.
Tens of thousands of Greek public transport workers, teachers, civil servants and air traffic controllers walked out Thursday to protest the latest round of brutal austerity measures announced the day before by the PASOK government of George Papandreou. The massive cuts in jobs and pensions, on top of previous measures, will mean destitution for wide layers of the Greek population.
Kyle Bass With David Faber - 'Greece Will Default And It's Going To Be Ugly For Europe, Germany And The U.S.' (17 Bailouts For 17 Euro Nations)CNBC Video - Hedge Fund Manager Kyle Bass with David Faber - Sep. 14, 2011
"17 individual TARPs for 17 Euro countries..."
Restructuring is the only one way out of this debt mess, and "restructuring means default." Kyle Bass, managing partner of Hayman Capital, told CNBC Wednesday.
"Greece has to default," said Bass. "It's going to be a hard default, and then it's going to be difficult to contain this contagion."
Some sort of move by Moody's had been widely expected this week since the agency had put them and rival BNP Paribas on review for downgrade in mid-June.
While cutting its rating on Societe Generale's long-term debt rating by one notch to Aa3 and Credit Agricole's by the same amount to Aa1, Moody's warned that both could have their ratings downgraded by a further notch as it assesses "the implications of the persistent fragility in the bank financing markets." BNP's rating also remains under review.
(Reuters) - Global stocks fell to 14-month lows on Friday and the euro reversed gains as growing concern about the impact on the banking sector of a possible Greek default offset vows from G20 leading economies to shore up the financial system.
Kyle Bass With David Faber - 'Greece Will Default And It's Going To Be Ugly For Europe, Germany And The U.S.' - 17 BAILOUTS For 17 Euro NationsCNBC Video - Hedge Fund Manager Kyle Bass with David Faber - Sep. 14, 2011
Quotes and complete transcript inside.
The looming bailout of insolvent European nations, particularly Greece which is hopelessly bankrupt, will be the definitive signal that a return to sound finances has been utterly abandoned. Rather than allowing market forces to correct the systemic imbalances in the financial system, the problem will be papered over by more debt, more printed money and massive debasement of paper currencies.
Gold, the enemy of central banks, will soar as governments frantically print and borrow to "save" Europe.
The Corporate Bank Run Has Started: Siemens Pulls €500 Million From A French Bank, Redeposits Direct With ECB
In a shocking representation of just how bad things are in Europe, the FT reports that major European industrial concern Siemens, pulled €500 million form a large French bank, which is not BNP and leaves just [SocGen|Credit Agricole] and deposited the money straight to the ECB. The implications of this are quite stunning, as it means that even European companies now refuse to work directly with their own banks, and somehow the ECB has become a direct lender/cash holder of only resort to private non-financial institutions!
Jim Rogers With David Faber - "Ultimately Greece, Spain, Italy & Portugal Will Default And Leave The Euro"
Great clip from last week on CNBC Bubblevision.
Standard and Poor's downgraded its unsolicited ratings on Italy by one notch to A/A-1 and kept its outlook on negative, a major surprise that threatens to add to concerns of contagion in the debt-stressed euro zone.
This is not good news for the Eurozone.
Foreign ownership of U.S. government debt declined in July for the second straight month, according to Treasury Department data released Friday.
Overall, foreign holdings of U.S. debt dropped from an all-time high of $4.5115 trillion in May to 4.4956 trillion in June and then to $4.478 trillion in July.
Moody’s cuts the credit rating of 8 Greek banks to junk status citing a run on their deposits while putting long-term deposits and credit ratings on negative outlook.
Europe is a "train wreck" and on the "brink of a major financial crisis," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday.
Don't forget that Goldman Sachs sold Credit Default Swaps to those European banks, so when they go, WE go.
In one of the biggest banks in the centre of Athens a clerk is explaining how his savers have been thronging to pull out their cash.
The Guardian reports that while Western media has been silent on the issue Greece is in an absolute state of panic facing a Great Depression style run on the banks as people race to withdrawal their cash.
But there is an official default, and the deal gives sweeping new powers to the ECB.
The European Union, European Central Bank and International Monetary Fund, acting in behalf of the international banks, are demanding a new round of austerity measures against the Greek working class as the precondition for releasing the next installment of bailout funds, without which Greece will go bankrupt next month.
European finance ministers, meeting Friday and Saturday in Poland, refused to approve the disbursement of the 8 billion euro allotment because Greece, whose economy has collapsed as a result of the mass layoffs and social cuts already imposed, has failed to meet its deficit-reduction targets.
Greek Bonds Collapse As ECB’s Nowotny Announces Bank Will Compromise, Agree To “Temporary” Greek Default
Wonder why the Greek 2 Year bond just plunged, sending its yield to a laughable all time high 39.09% (a 312 bps move today alone)? Wonder no more. According to the ECB’s Ewald Novotny the central bank has folded to German demands, and will now allow a “temporary” Greek default. Of course, what happens next will be a complete freeze in capital markets (see the chart below which shows borrowings on the ECB’s Main Refinancing Operation while itis still available) but who cares: the central planners think they have it all under control.
Greece has entered into default under a new bailout and is now able to borrow at a 3.5% interest rate instead of the 40% bankers were forcing them to pay to prevent a default. The question that remains is will financial Armageddon follow as a consequence of the default?While the masses have been forced into believing that a default by Greece would lead to a global financial Armageddon the event of a Greece default has finally come.
In the surface the default appears to be a positive step forward. It comes as part of a new bailout package under which Greece will now be able to finance their debt over a much longer period of time lowering the payments that need to be made.
As I previously reported Greece was being forced to pay bankers a nearly 40% interest rate on a 2 year bond to prevent them from going into default.
Greece Bonds Collapse, Interest Rates Surge To Near 40% As ECB Announces They Will Allow “Temporary Default”
European bankers have announced they will allow a temporary default on Greece sovereign debt which in turn caused Greek bonds to crash.
Of course, this means that the fears of Euro debt contagion will not most likely be put to rest as the Greece and other nations will now have loan terms that they can actually afford to pay back.
The bailout does however have it’s cons and sets a dangerous precedent of allowing nations to default on their debt.
Reuters reports on the implications of the default and the new bailout package:
This is the ONLY bit of good news in the Greek bailout.
But their losses should have been greater.
Egypt's transitional government has accepted a 3-billion-dollar loan from the International Monetary Fund to help relaunch the country's economy. Barack Obama has also promised cash for Egypt, and France's Nicholas Sarkozy pledged aid to both Egypt and Tunisia. But Radio host and blogger Stephen Lendman thinks the money will effectively hand over the sovereignty of Egypt to western creditors
- The European debt crisis is really financial warfare by the banks
- Indeed, the banks are in warfare against the rest of society
In a separate interview, Hudson says:
- What's going on in Greece is exactly what's going to happen in America in a couple of weeks.
- The big banks are forcing their bad debts on government
- They are also forcing governments to sell off national assets so the banks can install a "neo-feudalism":
As I documented last month in a post entitled "America Is Being Raped ... Just Like Greece and Other Countries", America is in fact being subjected to the same type of plundering as Greece and Ireland.
Professor Hudson explained in 2008:
As the wholly non-partisan Australian economist Steve Keen notes:
- "This is the biggest transfer of wealth in history", as the giant banks have handed their toxic debts from fraudulent activities to the countries and their people
- The big banks blew bubbles - using fraud - because that's the only way they could make obscene profits (see this for for details)
Indeed, this isn't the "Great Recession", it's the Great Bank Robbery. The big banks have pillaged and looted the rest of the world.
And it is not only Greece which is losing its sovereignty ... the big banks have turned America into a banana republic as well. Remember, the trillions in bailouts went to banks, not Main Street ... and a large percentage of the bailouts went to foreign banks (and see this). And so did most of money from the second round of quantitative easing.
While Germany was locked in an embarrassing public spat with the European Central Bank last week over who should pay the price for a new Greek bailout, fresh evidence was emerging of the impact of the savage cuts Athens has already imposed on its increasingly restive citizens.
The number of people unemployed has shot up by 40% over the past 12 months; the jobless rate now stands above 16%. Among young people it's a devastating 42%, representing extraordinary human and social cost. Yet the government's latest plans envisage another four years of slash and burn, taking the deficit from 7.5% of GDP this year to 1% by 2015. It's extreme fiscal masochism, and it isn't going to work.
BOMBSHELL REPORT - European Central Bank Risks Being 'Bankrupted' By Bailouts: "If Assets Fall By Just 4.23%, Its Entire Capital Base Would Be Wiped Out"
Gone. Poof. Disappeared.
Leverage is a bitch when your assets are collateralized junk - More EURO printing dead ahead.
"The federal government has to explain how the measures are compatible with the Basic Law....
Greece is understood to have agreed to €6.4bn (£3.9bn) of fresh austerity measures, including tax increases and accelerated privatisations.
The only way out of the Eurozone end-game is massive debt forgiveness and a return to national currencies. The first will destroy the banks, the second will destabilize the German export economy. “Extend and pretend” is an endgame, not a fix.
The critical design flaw of all these private central banks issuing the public currency at interest is that debt is intended to always exceed money supply. Everything the banks or governments do increases the debt faster than the money supply. So the economy is essentially a boat with eleven holes in the bottom and only ten corks, and all this bailout nonsense really amounts to yanking a cork from one hole and pounding it into another while screaming "I am solving the problem" in full view of the media cameras.
But the water continues to rise, because in the end, that is the result the system is designed to produce.
Perhaps the Greeks have heard that the ECB is on its way to Athens to take over tax collection in Greece and collect the deed for the Acropolis and Parthenon.
Or maybe it was word that Moody's downgraded Greece today to near-junk status and put the odds of default at 50%.
'Either way, the Greeks are getting pissed...'
Protesters took over the Finance Ministry building in Athens on Friday, hanging a giant banner from the roof calling for a general strike, as Greece wrapped up tough negotiations with international officials and succeeded in being granted the next multi-billion-euro installment from its bailout package.
You cannot save your economy by going deeper into debt. The global economy under the IMF is like a small boat with ten holes in the bottom and only 9 corks. All a bailout does it yank a cork from one hole and pound it into another. But as long as all money is issued as debt, the number of holes will always exceed the number of corks. The boat must sink eventually, no matter how energetically the corks get swapped around.
In the end, "debt" is a myth, like "divine right" and "Chattel ownership of slaves." It creates a sense of obligation only so long as people believe it is real.
Greek Army Threatens Military Coup Sparking Fears of Military Uprisings And Civil Wars Breaking Out Across All Of Europe
Greek Army Threatens Military Coup Saying “We Will Not Be Sold To Foreign Powers” Ahead Of IMF Bailout Loan Vote Sparking Fears That Military Uprisings And Civil Wars Spread Across Europe. Military Officers And Police Forces Are Now Joining The Protests.
The U.S. Central Intelligence Agency warned in a report that the tough austerity measures and the dire situation could escalate and even lead to a military coup, according to a report by Germany’s popular daily Bild.
Greece's banks are being hammered by a run on their reserves, leaving the country's main lenders increasingly reliant on the European Central Bank for funding.
Simon Ward, chief economist at fund manager Henderson, likened the situation to Britain's Northern Rock, which was eventually nationalised to save it from collapse.
The euro has fallen by more than 1% against the dollar, following a report that Greece had raised the possibility of leaving the single currency.
Straw, the former Labour foreign secretary, warned that the euro “is going to collapse,” and said, “Is it not better that this happens quickly rather than a slow death?"
Straw's message came after the International Monetary Fund (IMF) said the world economy would be destroyed if IMF members did not aid the Greeks.
Speaking at the parliament, Straw said, “What the Government should do instead of sheltering behind the complacent language, weasel words that 'it is not appropriate, we should not speculate' is recognize that this eurozone cannot last...
Europe has promised to unblock existing bailout loans for Greece and draw up a second financial rescue as long as its parliament approves fierce new budget cuts and a raft of asset sales.
After seven hours of crunch talks aimed at averting Greek default and fears of a domino effect across their shared currency area, eurozone finance ministers said they and the IMF would release 12 billion euros ($A16.25 billion) of loans in "mid-July" once Greece's parliament passed the austerity measures.
They also agreed on a roadmap for a second, 100 billion euro ($A135.45 billion) bailout, which would involve taxpayers' money but also a "substantial" contribution via the "informal and voluntary rollovers of existing Greek debt at maturity" by private banks, pension funds and insurers.
Prime Minister George Papandreou, besieged by public protests and dissent in his own party, appealed to Greeks on Sunday to support deeply unpopular austerity reforms and avoid a catastrophic bankruptcy.
"You must make do with less, so the bankers can have more!"
"You must make do with less, so the bankers can have more!"
"You must make do with less, so the bankers can have more!"
CAIRO HIS ASS!
it is unclear if even the existing deterioration in the deposit base can ever be undone due to the banks unprecedented reliance on the ECB for day to day funding, now that the bulk of domestic Greek capital is stashed away, safely, somewhere in the Swiss Alps
(This is the classic description of a spreading Great Depression which will hit Portugal, Spain and Italy next and then the rest of Europe, the USA and the world.)
The euro has fallen on international markets as the European sovereign debt crisis is deepening and appears to be reaching a dangerous denouement. European stock markets are also weaker due to serious divisions in Greece and in the EU as to how to resolve the Eurozone debt crisis and prevent contagion.
There is no way to "resolve" a debt-crisis within an economic system based entirely on debt. All money in circulation is the proceeds of a loan from the private central bank, at interest. No matter what the government does, no matter what the bankers do, the debt always increases faster than the actual amount of money in existence. It is like having a boat with ten holes in the bottom and only nine corks. Everything the government does amounts to yanking a cork from one hole and pounding into another in full view of the press cameras, while shouting, "I am working to fix the problem!"
The only possible "resolution" to any debt crisis is to shut the private central banks down, as Andrew Jackson did, and return to a value-based currency issued by the government itself, as Lincoln and Kennedy did, and which is the system the United States was founded on. The United States fought a war to be free of private central banking (the Bank of England), which made the American people the richest in the world until the economy was sold by a corrupted congress and President back into perpetual debt-slavery to the privately owned Federal Reserve and now to its hideously mutated bastard offspring, the IMF. All the talk about "resolving" the debt crisis is a smoke screen while the bankers loot the public until the whole system comes crashing down.
The IMF is delighted to announce that it just approved a €3.2 billion disbursement of cash for Greece, its fifth, as part of the €12 billion in money that Greece needs in order to continue operating in the months f July and August. And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: €12 Billion In, €18.2 Billion Out the entire amount will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to €18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out.
It is when, not if. Financial markets merely aren’t sure whether it’ll be tomorrow, a month’s time, a year’s time, or two years’ time (it won’t be longer than that). Given that the ECB has played the “final card” it employed to force a bailout upon the Irish – threatening to bankrupt the country’s banking sector – presumably we will now see either another Greek bailout or default within days.
What happens when Greece defaults. Here are a few things
Wall Street Develops Schizophrenia Saying A Greek Default Will Be "No Big Deal" As European Leaders Prepare For Greek Default And Hedge Fund Manager George Soros Warns Wold Is On Verge of Global Economic Collapse.
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.
Memo to Alan Greenspan: neither the Greek nor the American people signed on to the horrific jobs their respective governments and central banks did in terms of managing the economy.
With the US, we didn't sign on to wars without end in Afghanistan, Iraq, Pakistan, Libya, and (potentially very soon) Syria.
We didn't sign on the the Fed printing money to the point where Americans' savings have lost an extraordinary amount of value.
We didn't sign on for the rescue of banks and financial institutions deemed "too big to fail".
We didn't sign on to jobs being outsourced in order for the homes on which we could legitimately afford a mortgage get repossessed in order for banks to pay back the illegal mortgage backed security frauds to other banks (including, thank you very much, the bank of Libya).
We did not create these problems: the US Government and the Federal Reserve created them for us; therefore, the US government and the Federal Reserve are going to have to find a way to fix them without expecting one cent of assistance from We the People.
You got into this mess without our permission; you can get out of it without our help.
Britain could be hit with losses of up to £366billion from the collapse of the Greek economy, it has emerged.
The potential devastation of banks and other City institutions would be equal to 24 per cent of our annual national output, or £14,640 for every family in the UK.
Ministers had claimed that British banks have 'only' £2.5billion of exposure to Greek government debt, while the Bank of England says the potential losses would be just £8billion.
But experts last night said that UK financial institutions are in far more danger than previously thought, because banks are tied up in complicated derivatives and insurance deals.
While the biggest U.S. money funds have minimal direct holdings of Greek government debt, they hold roughly $1 trillion of debt issued by big European banks such as BNP Paribas SA, Barclays PLC and Deutsche Bank AG, according to industry analysts. And those banks hold piles of Greek and other European government bonds, exposing them to large potential losses if the European sovereign-debt crisis takes a turn for the worse.
The worry is that a default in Greece or other trouble spots like Portugal or Spain could cascade into a broader crisis, weakening the banks and subjecting money funds that hold those banks' debt to potential losses.
The Greek Revolution Has Succeeded In Forcing The Government To Step Down In The Midst Of Massive Protests Calling For The Regime of Corrupt Government And Crooked Banks To Be Replaced With Real Democracy.
Prime Minister George Papandreou vowed Thursday to stay on and fight to pull his country out of a crippling debt crisis, facing down a revolt from within his governing Socialists over widely unpopular new austerity measures.
Last night Papandreou was talking about resigning after firing his Cabinet. Today he says he refuses to leave.
That was Mubarak's big mistake.
Harry Papachristou and Barry Moody
Greece's embattled government on Wednesday survived a confidence vote crucial to avoiding a sovereign default, as thousands of protesters chanted insults outside parliament...
Just concluded 3 minutes ago - Papandreou survives vote of confidence which clears the way for austerity passage likely next month.
The international banking elite wins again.
Maria Damanaki ex-KKE but PASOK for the last two decades and a Euro Commissioner stated in the EU today that 'either the Greeks adopt the 2nd round of cuts and privatisations' with a unity across the two major parties, or Greece will return to the Drachma.
Taking into account her current postion as an EU Fisheries Minister, she cant be saying things without high level agreement with Papandreou. It is being used to threaten and cajole the Opposition Parties (var the KKE) to allow PASOK to get through its legislative programme of more cuts by forcing the 180 votes required in Parliament this time (2/3 of total) otherwise the government will fall. New Demccracy traidtionally the pro-American party may be seeking a Euro exit for Greece.
"Austerity" is gov-speak for taking more money from you, and instead of using it to improve your life by building schools and hospitals, repairing roads and bridges, and generally improving the infrastructure, giving it to Wall Street to buy back those fraudulent mortgage-backed securities so that the Wall Street crooks who became fabulously wealthy with history's greatest financial scam don't have to use their own money to stay out of jail!
This is, of course, the hallmark of a fascist economic state. Profits are kept private, but losses are socialized across the general population.
As long as you sit there and go along with it, the future will be a continuation of the looting of the American people for the benefit of Wall Street (and Israel).
The irony here is that you accepting a lower standard of living will not actually save the economy or for that matter reduce the debt. The entire monetary system imposed on the nation by the privately-owned Federal Reserve is based on debt. All currency in circulation is the result of a loan from that private central bank as as Americans work to reduce their debt the government must increase its borrowing (on your behalf, without your permission, and with the demand that you eventually pay it back in taxes) in order to keep currency in circulation. So all this "austerity" and "sacrifice" will not actually solve the economic problems of this nation, but will instead simple shift the pain of the disaster from those who caused crash onto those who had nothing whatsoever to do with it.
As long as you go along with it.
But the people of Iceland did not go along with it. They tossed their crooked bankers in prison and fired the government that helped those bankers loot the people. More recently they rebuffed yet another effort by the bankers to trick them into paying the costs of the scam, and threatened to exclude Iceland from the EU if they did not. The people of Iceland, well aware that globalism is why the Wall Street scam ruined the Icelandic banks, do not want to be in the EU anyway and told the banks to go jump in Eyjafjallajökull!
Down in Egypt, the constant pressure for "austerity" and "sacrifice" demanded of the Egyptian people by Mubarak as he sold Egypt's natural gas to Israel at below market prices was a key factor in their revolution (as it was in Cuba's revolution against US puppet Batista). Although now hijacked by US and Israel interests, the revolutions in Yemen, Morocco, and Libya, etc. sprang out of a refusal by the people to continue to make do with less so that the rich could have more. "Austerity" demands led to riots in many nations such as Greece.
The question is, when will it happen in the US? When will Americans regain their right to say "no?" When will Americans remember they are supposed to be a free people, not merely the serfs of the banking class? When will Americans realize that although they are told they are civilized, they are in fact merely domesticated?
When will Americans realize that the rest of the world is laughing at us for hallucinating we are the land of the free and the home of the brave even as our children's futures are sold for Wall Street's bling?
ATHENS, June 5 (Reuters) - Tens of thousands Greeks rallied in central Athens on Sunday to denounce politicians, bankers and tax dodgers, as the government prepared to inflict another bout of austerity demanded by its international lenders.
"Thieves - hustlers - bankers," read one banner as more than 50,000 people packed the main Syntagma square outside parliament to vent their frustration over rising joblessness as austerity bites, blaming the crisis on political corruption...
ATHENS (Reuters) - Taxi drivers blocked major roads across Greece Monday, stepping up protests against EU/IMF-inspired reforms to their trade and disrupting tourism at the height of the summer season.
The protesters, who have been on strike for two weeks, oppose government plans to issue new taxi licenses, as part of the cash-strapped country's efforts to revive its ailing economy by liberalizing restricted business sectors.
The European Parliament is refusing to release a secret report detailing widespread abuse of MEPs expenses despite an EU court ruling that there is "overriding public interest in disclosure".
"Austerity is for the peasants! God intended us to have wealth and privilege and none of it is any business of the plebeians!" -- Eeeewwwww.
The Italian cabinet on Thursday passed a series of austerity measures aimed at balancing the budget by 2014 and stopping the eurozone crisis spreading.
... by raising taxes on the Italian people while cutting services. It is the same mantra across the globe; "You must make do with less, so the bankers can have more. You must make do with less, so the bankers can have more. You must make do with less, so the bankers can have more."
Spaniards protesting the handling of their country's economic crisis have vowed to keep their tents in central city squares this week.
Attention Spaniards. The French had a great way of dealing with crooked bankers and politicians who helped them loot the public.
And it is environmentally friendly (as long as you compost the remains)!
Remind you of Egypt last February?
The revolution has started in Spain as tens of thousands take to the streets in protest of high unemployment and draconian austerity measures.
Thousands of Spanish protesters have camped out in Madrid and several other cities to demand jobs as well as political change ahead of weekend local elections.
Outraged by Spain’s economic crisis and soaring jobless rate, demonstrators defied a ban by authorities and poured onto Madrid’s central Puerta del Sol square and in several cities, including Granada, Seville, Barcelona, Valencia, Zaragoza and Palma de Majorca, AFP reported on Wednesday.
Things had been pretty calm in Plaza Catalunya, epicenter of the Barcelona 15-M camp, since the incidents a couple of weeks ago when the riot cops failed to take the square. The popular assemblies continued their protest and their discussions, and finally voted to lift camp last Sunday and transfer the movement to the neighborhood committees. But first there was one last step to take, one last show of strength before moving on: to peacefully protest at the gates of the Catalan parliament yesterday, the day the politicos gathered to approve the austerity measures to be applied to the native slave stock.
See the rest of the photos - 25 pics - all black & white...
Make sure to see #12 and #13...
Hundreds of thousands of public sector workers have begun to strike across the country, closing or disrupting schools, colleges, courts, Government offices and job centres.
Port and airports are being affected, causing travel chaos for holidaymakers trying to head abroad. Anyone arriving in the UK today is likely to be among those facing long queues.
The impact of the strike began to be felt as early as last night as border control staff refused to turn up for work.
Early indications this morning were that the estimate of 750,000 strikers could prove to be accurate and some union officials said they expected "the best supported strike we have ever seen".
Hundreds of thousands of public employees set to strike, with co-ordinated day of action on 30 June.
Iceland, Egypt, Greece, and now Spain and Great Britain. In their lust to create a global fascist dictatorship, the money-junkies may have set the stage for a truly global revolution.
Big Swiss banks have very little direct exposure to Greece but Switzerland may be affected if a Greek default destabilizes the whole financial system, the Swiss National Bank's vice chairman told a newspaper on Sunday.
Here we see the stupidity of the globalists (aka the New World Idiots). Taking down the barriers to global finance makes as much sense as locking open the fire doors in a building or welding open the watertight doors in the bulkheads of a ship. Yews, people and materials can move around more quickly, and as long as everything is okay it seems like an improvement. But at the first fire or first leak, the building or ship is lost. That is what is happening now as the Greek people decide that they will not be forced to sacrifice the lives they have built for themselves to save the Greek bankers from their reckless stupidity in investing in Wall Street's Mortgage Backed Security Fraud. (Good) Because Greece's economy is globalized; forced into a cross dependency with the rest of the European Union and through Credit Default Swaps with the rest of the world, Greece's default will drag down the rest of the world with it because the borders were dropped, just as an office fire will destroy the whole building because the fire doors are locked open, just as the entire ship will sink because the watertight doors are welded open.
I won;t say I told you so, but I did! I have been sounding the alarm globalism for years, but the money junkies love it, because globalism makes their profits higher and discourages independent action, which might threaten the oligarchy.
We know that while there is a government issued currency that the interest charged by banks using bank customer savings can work without harming society. But this recent experiment in private banks issuing all public currency as interest-bearing debt, while making the bankers insanely rich,. has been a disaster for every nation where it has been tried.
The problem is that under a system of private banks such as the Fed, the ECB, and the IMF, issuing all public currency as interest-bearing debt, debt by design always exceeds the total available money supply. The instant that first bank note goes into circulation, more money is owed to the bank than actually exists. That accumulating interest debt is a fiction because that money does not and cannot exist. Yes, you can take out more loans to create new money to pay the interest on the old money, but the debt still exceeds the available money supply. These are pyramid schemes, and all pyramids must collapse.
To blend a banking system that makes the bankers rich even as it heads towards self-destruction is an act of sociopaths who want their riches now and care not for the suffering they cause on the world. And as the system collapses we see, not a sharing of wealth but a shifting of debt, like a giant and deadly game of musical chairs, to see which people will get stuck with the debt. The warning sign is clear; as nation after nation repudiates this artificially manufactured debt obligation; Iceland, Egypt, Greece, Spain, etc. we see the government of the United States still volunteering the American people as the piggy-bank of last resort.
The only solution to this global banking scam is a global revolution against the money-junkies and their debt-based currency system. Iceland has led the way. Do we have the courage to follow?
Italy undergoing a slow motion crash, with bank after bank getting halted, first Intesa, then Monte Paschi, and most recently, main bank Unicredit.
The euro sank to a record low against the Swiss franc as a halt in the trading of some Italian bank shares fed fears that Europe's debt crisis might be spreading.
The single currency fell as low as 1.1844 Swiss franc over fears the Greek sovereign-debt troubles were gaining a larger foothold outside its borders and in the region's banking system.
The crisis enveloping Greece, Ireland and Portugal appeared to deepen after figures showed EU banks were refusing to support business deals in the EU's hardest-hit economies.
Figures from the Bank of International Settlements (BIS) show French, German and UK banks have embarked on a mass exodus from Greece, Portugal, Spain and Ireland, in what analysts see as an effort to bolster their balance sheets and conform to new rules designed to protect financial institutions from going bust.
The government has declined a loan from the World Bank because it found the terms of the loan incompatible with the national interest, Egyptian Minister of Planning and International Cooperation Fayza Abul Naga said on Monday.
The minister added that the government would not accept conditions dictated by the World Bank or the International Monetary Fund, especially since the 18-day uprising that toppled former President Hosni Mubarak.
China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury...
A report about Swedish interest-free bank JAK, shot in Germany and Sweden, August 2007. Read and download Margrit Kennedy's book, "Interest and Inflation Free Money," here.
The economic aid package that Mr. Obama will talk about on Thursday is meant to show democracy protesters, and Arab governments, that the United States stands behind the democracy movement and will reward governments that make reforms.
Translation: Obama will borrow a ton of cash, on your chit, to bribe the new post-revolution governments to go back to doing what Israel demands.
No government can serve two masters.
Thousands of protesters, gathered on Freedom Square as part of the campaign by opposition People's Assembly movement to force President Saakashvili to resign, start marching towards the Georgian Public Broadcaster (GPB).
Nino Burjanadze, ex-parliamentary speaker and leader of Democratic Movement-United Georgia party, who is a key figure behind the movement, said further plans of the rally would be announced about the GPB headquarters, which is located on Kostava Street about three kilometers away from the Freedom Square.
Meanwhile in Batumi, main town of Adjara Autonomous Republic on the Black Sea, a simultaneous rally is held, where few thousand of protesters are gathered.
PROTEST SET FOR WASHINGTON DC MARCH 19 and 20 and beyond.
Thousands clashing with police in Croatia, dozens injured
Libya uprising: Anti-Gaddafi forces control Zawiya
Protesters refuse to leave Wisconsin Capitol even after police close building
Ireland's Prelude to Revolution: IMF Bankster Party Tossed From Power In Crushing Defeat For Bank Bailouts
115, Including Civilians, Killed in Latest Somali Govt Offensive
Hundreds protest Lebanon's 'sectarian' government
“The biggest story in the market is the currency crash right now occuring in the US, I think a lot of people are debating whether it is in fact a currency crash,” Keith McCullough, CEO of Hedgeye Risk Management told CNBC.
Goldman Sachs, Deutsche Bank and JP Morgan Chase, which bundled and sold billions of dollars of mortgage loans, now want to help investors bet on people's deaths. Pension funds sitting on more than US$23 trillion of assets are buying insurance against the risk their members live longer than expected.
Investment banks see this as an opportunity to package that risk into bonds and other securities and create a new market for those willing to bet on life-expectancy rates. If pensioners die sooner than expected, investors profit. If they live longer, investors must compensate the pension fund for the additional costs it faces.
Unflipping believable; and that they may be allowed to do this by the US government, after the financial debacle created by illegally bundled mortgage-backed securities, is even more unbelievable.
If you haven't been paying attention, Goldman Sachs shares have been in freefall.
They lost over 3% Friday amid a slew of headlines about imminent subpoenas related to Blankfein, the firm's activities during the crisis, and just generally for being the much-reviled Goldman Sachs.
The stock has lost over 10% in just the last week since Matt Taibbi wrote his latest takedown, costing the firm over $8 billion in market cap.
From its 52-week high made earlier this year, the stock is off 24%.
The Biggest Bank in France Has Suddenly Cut ATM Card Access to Cash in Half and People are Freaking Out!
Solid analysis from hedge fund manager Douglass Short.
Moody's Investors Service has today downgraded Portugal's long-term government bond ratings to Ba2 from Baa1 and assigned a negative outlook. Concurrently, Moody's has also downgraded the government's short-term debt rating to (P) Not-Prime from (P) Prime-2. Today's rating action concludes the review of Portugal's ratings initiated on 5 April 2011.
The following drivers prompted Moody's decision to downgrade and assign a negative outlook:
1. The growing risk that Portugal will require a second round of official financing before it can return to the private market, and the increasing possibility that private sector creditor participation will be required as a pre-condition.
This warning today after they cut Portugal 4 notches to junk status yesterday.
The euro plunged deeper into crisis last night as Greece’s credit rating was slashed to ‘junk’ status – just one notch above default – by another major agency.
David Cameron told European leaders to act immediately to prop up the ailing country amid fears that the crisis stalking the single currency will drag down Britain.
Moody’s Investors Service raised the pressure on U.S. lawmakers to increase the government’s $14.3 trillion debt limit by placing the nation’s credit rating under review for a downgrade.
The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt threshold will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said in a statement yesterday. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.
Bond Vigilantes Strike; Crisis in Italy Escalates; Portugal 2-Year Debt Hits 18.36%, Greece 31.34%, Ireland 17.83%; New Record High Spreads
The “Bond Vigilantes” are out in force in the European Sovereign Debt markets. What is at risk here is not Italy, rather it is the Euro itself...
The assumption was that these banks did not have to have reserves against sovereign debt as there was no default risk. As the real problem of default was recognized, these banks bought Credit Default Swap insurance but the “insurers” cannot pay off.
Italian parliament adopts draconian austerity budget - approved the 48-billion-euro ($68 billion) package
Italian Prime Minister Silvio Berlusconi kept out of the spotlight as parliament in Rome approved the 48-billion-euro ($68 billion) austerity package aimed at averting a full-blown financial crisis.
"Bend over and spead 'em!"
Egan-Jones Ratings Agency - who called the 2008 financial collapse and lead Moody’s and S&P in putting the U.S on Credit watch - Cut U.S Debt Rating From AAA status over the weekend.
As Zero Hedge notes, Egan-Jones has just downgraded U.S. credit, for reasons other than the debt ceiling debate.
"But rest assured your rating will be restored to the top level as soon as we see you flogging the American people into surrendering more of their money to us!"
Max Keiser about the rating institutes.
The U.S. got a sovereign credit rating of C on Thursday, in line with ratings for such smaller economies as Mexico, Estonia and Colombia.
Weiss Ratings, based in Jupiter, Fla., has rated the creditworthiness of financial institutions for several years, but the firm launched sovereign- debt ratings of 47 countries on Thursday. The U.S. rating of C (Fair) ranks it 33rd, Weiss noted in a statement.
Although the United States narrowly avoided an unprecedented default following congressional approval of a last-minute compromise plan to raise the debt ceiling, China's leading credit rating agency Wednesday downgraded U.S. sovereign debt after putting it on negative watch last month.
The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A, indicating heightened doubts over Washington's long-term ability to repay its debts.
This means that the interest rates on the debt China holds have just increased. Technically, the US Government has just gone into default. We may well see a "bird on a wire" effect as the other global credit ratings agencies, rather than look like Obama stooges, also start to downgrade the credit rating of the US Government.
Of course, if the US can come up with a quick reason to demonize China and possibly declare war, then they can stiff China for all the money they are owed.
Reports this week marked the dollar’s continued slide – it reached a 16-month low against the euro and slid to a historic low against the Swiss franc on Tuesday – while at the same time predicting something we’ve been telling you for years now, namely that the dollar is on its way out as the world’s reserve currency.
Confirming once again that Wall Street economist (and sell side in general) is the most useless profession in the world (though gladly accepting a 7 figures compensation), is the latest data out of Japan which is yet another stunner to most, as nobody, nobody, could have possible predicted that the Japanese economy would literally fall off a cliff in Q1, plunging at a 3.7% rate (down from -3% previously), which is double the consensus print of -1.9%. DOUBLE. And in nominal terms the collapse was simply epic: -5.2%!
This, coupled with the Fukujima disaster, means that Japan will literally be unable to purchase any more US debt at all.
The German government says it has earmarked some euro135 million ($191 million) in next year's budget to subsidize the sale of another Dolphin-type submarine to Israel.
The German Defense Ministry told The Associated Press on Monday that the funds will reduce the price Israel will pay for the German-built submarine by one third.
Germany's economy is in struggle for its life, and still their government hands gifts to Israel.
Import prices rose 2.2 percent in April following a 2.6 percent advance in March, the first time import prices increased by more than two percent in consecutive months since June 2008, according to the Bureau of Labor Statistics. The price index for overall imports recorded an increase each month since October and rose 11.1 percent over the past year.
While energy prices were the main driver of higher prices (Import fuel prices advanced 6.7 percent in April), increases were reported in many other sectors. Foods, feeds, and beverages prices advanced 1.8 percent in April after a 4.2 percent rise in March. The April increase was driven by a 22.8 percent jump in coffee prices....The price index for nonfuel industrial supplies and materials rose 1.7 percent in April following a 2.0 percent rise the previous month. Both increases were led by higher chemical and unfinished metals prices, which increased 2.4 percent and 1.7 percent, respectively, in April. The rise in chemical prices was driven by a 6.6 percent advance in plastics prices, and the largest contributors to the rise in unfinished metals prices were prices for gold and other precious metals.
Prices for import fuel rose 34.8 percent for the year ended in April.
Translation: Dollar Worth Over Last 12 Months Plunged at Double Digit Rate
Shoppers paid 4% more for a basket of 16 food items at the supermarket in May compared to February, the American Farm Bureau Federation said Thursday in its latest informal survey.
Fears of poor sugar harvest drive UN food price index to within 1.6% of February record
Hard-pressed consumers face higher grocery bills after new figures showed that food prices jump
Households on a dual fuel tariff paying monthly by direct debit will see their bills increase by an average of £175 a year.
The company last put its prices up in November, when gas prices rose 2% and electricity bills by 8.9%.
It blamed the most recent price rise on a prolonged rise in wholesale energy costs, which has pushed the average price of wholesale energy up 30% since November.
Recently there have been huge rises in wholesale energy prices following the turmoil in the Middle East and the shutdown of Japan’s nuclear power plants. Yet prices on the wholesale market are still below the peak reached in 2008 when customers’ bills were 20 per cent lower.
Rising environmental costs have put further pressure on suppliers’ margins but this comes after a period of bumper profits for many.
British Gas, for example, announced record profits of £742million for last year.
Last week uSwitch warned there was a real danger of a repeat of the 2008 crisis which saw energy bills soar by £334 or 41 per cent.
Takes 2 seconds - Worth a look.
World food prices that rose 37 percent in a year, driving 44 million more people into poverty, are a “plague” that need action from world leaders now, French President Nicolas Sarkozy said.
LONDON — Food prices could double in the next 20 years and demand in 2050 will be 70 percent higher than now, U.K. charity Oxfam said on Tuesday, warning of worsening hunger as the global food economy stumbles close to breakdown.
"The food system is pretty well bust in the world," Oxfam Chief Executive Barbara Stocking told reporters, announcing the launch of the Grow campaign as 925 million people go hungry every day.
"All the signs are that the number of people going hungry is going up," Stocking said.
Hunger was increasing due to rising food price inflation and oil price hikes, scrambles for land and water, and creeping climate change.
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A massive international land grab is now underway as investors and national governments buy up millions of acres of farmlands in Africa, Asia and Latin America. It amounts to an unprecedented and novel set of enclosures of worldwide land, much of it customary land that rural communities use and manage collectively. Hundreds of millions of rural poor people rely upon the land for their families' food, water and material -- but they don't have formal property rights in the land. Those rights typically belong to the government, which is authorizing the sale of “unowned” lands or "wastelands" to investors, who will then use the land for market-based farming or biofuels production.
A world enslaved by a sense of obligations created with nothing more than paper and ink. No wonder so many people wonder if there is intelligent life out there because there sure as hell isn't any down here or we would realize that ownership of land is as much a fiction as ownership of people.
A full scale attack by EPA and the Army Corps of Engineers to take control of all water from any source whatsoever is under way. What these agencies are attempting is an end run around water and land rights. These agencies are constructing regulations and fictional jurisdictional control. We cannot depend on our courts or the federal government to reign in and control these agencies as they are both privately owned corporations that masquerade as public service agencies. While congress may express their concerns about the police state actions being constructed, they have no authority or power to dictate what these agencies do under private contract law.
EPA and Corps Clean Water Act Regulations Guidance Comments For The Record
A few hours ago, the Food and Drug Administration declared it no longer needs credible evidence to seize food that may be contaminated. Ignoring the Fourth Amendment entirely, the FDA claims that based on mere suspicion that a food product has been contaminated or mislabeled, and that serious illness or death will result, it can hold the food for 30 days while it then looks for evidence. It claims this power under the Food Safety Modernization Act, which President Monsanto, I mean, Obama, signed in January...
You think food prices are high now?
LAS CRUCES - Hay prices are spiking in Do a Ana County and throughout the state - part of a larger-scale disruption that's stretching across the West, experts said.
Not only is the price soaring, but the crop is becoming increasingly scarce. The situation is impacting the pocketbooks of horse owners and dairy farmers across the area.
Dean Horton, owner of Las Uvas Dairy southwest of Hatch, said he's paying as much as 30 percent to 50 percent more for forage crops, which include alfalfa, than a year ago. Even locating hay has been a challenge, he said.
When farmers Danielle and Matt Boerson realised they could no longer afford to run their tractors, they took the bull by the horns - and ditched them for oxen.
Soaring petrol prices had become so high that the couple, who run an 80-acre farm near Madison, Wisconsin, were forced to get rid of their two tractors, hay baler, plough and rotavator.
So they took a course at the agricultural institute in traditional farming techniques.
Although this is being glamorized as "eco-friendly"
, this is just another very clear sign that the US is rapidly descending to third-world status.
Welcome to "Ameristan", courtesy of the last several administrations.
Data for February, the most recent month available, show that 14.3 per cent of the population - 44.2 million people - received food stamps.
The number of Americans receiving the benefits had risen over the recession, although it has levelled off over the past few months, and remained stable through February, according to the data.
Still, enrollment in food stamps remains relatively high, and 11.6 per cent more people claimed them versus February of last year.
The government considers a family of four to be impoverished if they take in less than $22,000 a year. Based on that standard, and government projections of unemployment, it is estimated the poverty rate for kids in the U.S. will soon hit 25 percent, the report said. Those children would be the largest American generation to be raised in hard times since the Great Depression.
In Seminole County, near Orlando, Fla., so many kids have lost their homes that school buses now stop at dozens of cheap motels where families crowd into rooms, living week to week.
American families have been falling out of the middle class in record numbers. The combination of lost jobs and millions of foreclosures means a lot of folks are homeless and hungry for the first time in their lives.
These numbers should shock any American with a conscience.
But what is every more shocking, is that this has been done deliberately to destroy the US's middle class.
Soon we will hear officially that the 2nd recession (did the first one ever really end?) began in April of 2011.
Unemployment rose in more than 90 percent of U.S. cities in June, mirroring a national slowdown in hiring.
The Labor Department says the unemployment rate rose in 345 large metro areas. It dropped in 20 cities and was unchanged in seven. That's worse than May, when the rate rose in only 210 cities and a sharp reversal from April, when unemployment actually fell in nearly all metro areas.
A sudden and unexpected burst in private-sector downsizing pushed the number of announced job cuts to a 16-month high of 66,414 in July, according the latest report on downsizing activity released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
The 66,414 job cuts last month were up 60 percent from the previous month, when employers announced plans to shed 41,432 workers. The July figure was 59 percent higher than the 41,676 layoffs recorded in July 2010. It was the largest monthly total since March 2010, when 67,611 job cuts were announced by the nation’s employers.
Cisco Systems Inc. (CSCO), the largest networking-equipment company, may cut as many as 10,000 jobs, or about 14 percent of its workforce, to revive profit growth, according to two people familiar with the plans.
Facing deep funding cuts, the Milwaukee public school district announced this week that it will lay off 519 employees, including 354 teachers.
The announcement comes after Wisconsin Gov. Scott Walker signed a two-year budget into law on Sunday that sharply curtailed funding across the state and rolled back about $84 million in aid to Milwaukee schools.
"Look, it's simple. If we pay for education, then the Wall Street CEOs have to go to prison for the mortgage-backed securities fraud and we just CAN'T let THAT happen; I need their campaign donations for next election! Besides, if your rug rats really want an education; they should join the Army and go kill Muslims like real patriotic Isralis, I mean, real patriotic AMERICANS are supposed to do!" -- The Guvnuh
DTE Energy Company has already repossessed 1,400 street lights in Highland Park
Just back from a food distribution in our neighborhood. About 200 people were expected. Over 600 turned up. Black, white, young, old, thin, fat, surly, gracious, families, very alone. Despite the truckloads of food, we ran out; in the end, people stood in line mournfully eyeing the last canned dregs and dented cereal boxes, trying to decide if it was worth it. Maine is poor, but our county isn't. Yet there are 49 food pantries and soup kitchens here. The head of Viacom should go help at one.
J.P. Morgan's Food Stamp Monopoly: The More Americans That Fall Into Poverty The More Money Jamie Dimon Makes
I have been telling you the economy is not in any kind of real recovery for more than a year. Sources I have been quoting have been proven right, and all the economic cheerleaders dead wrong. Reuters reported yesterday, “Data showing a double-dip in home prices, pessimistic consumers and a slowdown in regional manufacturing raised concerns on Tuesday that the economy’s soft patch could become protracted.”
“Could become protracted?” It is protracted, and now the data is suggesting the economy is getting ready for another cliff dive..
45.8 million people (obviously an all time record) living on foodstamps
Which begs the question: will Obama be the first president under whose rule total foodstamp usage hit 100 million? Surely, by then there will be a Nobel prize for destroying one's middle class
It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
Can we go Cairo on them now? Can we? Huh? Can we?
As the U.S. economy falls apart and millions of Americans descend into despair we are seeing some really shocking things start to happen all over America. The mainstream media keeps telling us that crime is under control, but they are also the ones that keep telling us that we are in the midst of an “economic recovery”.
Unfortunately, the truth is that the economy is slowly dying. Today, an all-time record 44 million Americans are on food stamps. That number is 18 million higher than it was just four years ago. When people can’t get jobs and when people feel deprived they get desperate.
One thing you can do as a member is study pending legislation and regulatory changes, call up your broker and instruct him to trade on that nonpublic information. Do this as often as you want; you will suffer no penalty. There is no limit to how much money you can earn on insider trading in the House or Senate. Lawmakers and their staffers are specifically exempted.
As you might expect, those who work in the hallowed halls are not shy about availing themselves of the opportunity. A Wall Street Journal analysis published more than six months ago that has thus far provoked no particular sense of shame on Capitol Hill found that at least 72 Congressional aides in both parties had recently traded shares of companies that their bosses helped regulate.
Unflipping believable, but in light of the fact that members of Congress have their consciences surgically removed before taking office, this hardly surprises me.
The US House of Representatives has voted to shave more than a billion dollars from next year's Department of Homeland Security budget as part of its deficit reduction plan.
So expect a staged "terror" (nudge nudge wink wink) attack so the DHS can scream., "See? See? You NEED us! That's what happens when you take our money away!!!"
Linda Green is exposed as the most famous robo-signer in history.
Plus a few more outrageous stories of foreclosure fraud.
You can't even call this a slap on the wrist versus the billions in fraud committed.
The author of a study claiming the U.S. housing collapse is now worse than during the Great Depression warned Wednesday that the market likely will continue to fall for the rest of the year before going stagnant.
Paul Dales, senior U.S. economist for Capital Economics, predicted home prices would fall another 3 percent over the rest of 2011 before potentially hitting bottom.
The destruction of the middle class will not be televised – 56 percent of American workers have less than $25,000 saved. Even worse 60 percent of retirees have less than $50,000 saved. 45 million on food stamps and the consequences of peak debt.
The disappearance of the middle class will not be televised. Don’t expect your favorite talking head to relay this information to you. At the core of our economy we have become a consumption nation. This necessarily isn’t negative if we were to balance out the opposite side of the equation with adequate savings. It would be one thing if the working and middle class were consuming with money that they had earned. Instead for over a decade many Americans have used massive amounts of debt in mortgages, credit cards, and student loans to finance things they simply could not afford.
The brittle financial American middle class – 50 percent of Americans would be in financial trouble if $2,000 of expenses came up in 30 days.
The city of Central Falls, Rhode Island says they are so broke they had to give their retirees a dreaded ultimatum -- give up 50% of your pension or risk losing it all.
CENTRAL FALLS, R.I. (AP) -- The state-appointed receiver overseeing Rhode Island's cash-strapped Central Falls on Monday filed for bankruptcy on the city's behalf in an effort to solve its fiscal crisis.
Video - Candles, lanterns and 10-gallon water jugs.
The author claims that 25% of the people in his area are squatting in their own property.
President Ronald Reagan once famously said that a stack of $1,000 bills equivalent to the U.S. government's debt would be about 67 miles high.
That was 1981. Since then, the national debt has climbed to $14.3 trillion. In $1,000 bills, it would now be more than 900 miles tall.
And all of it an illusion built with just paper and ink, to enslave you and your children to the private central bank.
The financial tipping point of peak debt – Total credit market debt owed increased from $28 trillion in 2001 to over $52 trillion in 2011. Household debt contracting while Fed juices up the banking sector with more debt.
At the dark heart of our financial dilemma is debt. Too much debt was used to bolster households during the real estate bubble and now too much debt is being used by the government to bail out the financial sector.
Quotes transcribed for anyone who can't watch videos. Dr. Levitin is a Georgetown Law professor and expert on banks and foreclosure.
A key congressional committee wants to increase the funding for US-Israeli missile defense programs to a historic high in the coming year.
The US House defense appropriations subcommittee on Wednesday approved increasing missile defense funds to $235.7 million in 2012, up from $217.7 million in 2011.
LONDON, June 5 (Reuters) - The world's top 14 derivatives dealers may need extra cash to handle a surge in transaction clearing, especially in choppy markets, the Bank for International Settlements (BIS) said.
The Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive.
President Barack Obama threw the talks on the debt ceiling crisis into turmoil on Monday afternoon by proposing a $600 billion tax hike before even meeting with Republican Senate leader Mitch McConnell.
Obama is taking America the same direction as Greece. Tax the people into total poverty and then strip mine the hard assets taxpayers paid to build, and sell them off at fire-sale prices to the guys running the money printing presses that created this mess.
We The People must stop this, because Obama's solution is no solution.
Obama's simplistic thinking is to simply take more money from the American people, but we have no money left. Looting the population to keep the Wall Street Mortgage-backed securities fraudsters out of prison has cost the American people an estimated $27 trillion (Dylan Ratigan's figures). There is little out here left to take!
The reality Obama is pretending does not exist is that the Federal Reserve System was and is a debt-trap from which escape is designed to be impossible, so long as the people are brainwashed into unquestioned believing in the rules the bankers created to make themselves rich. The system is PLANNED to keep people slaves to debt. The only way new money comes into being under this private central banking system is through more loans; loans to business start-ups, loans to employers, and loans to consumers, but if that money is grabbed by the government to pay their bills, the total aggregate debt still exceeds the available money supply and the total debt continues to climb.
There is one and only one way to end this debt problem. The private central bank debt-based currency experiment has failed the nation. It is time for the Federal Reserve to go. All the government can do is decide which side of that debate they wish to be on, and to live (or die) with the consequences of that choice. You are either with the bankers, or with the people. There is no middle road, even in an election year.
The Obama administration says President Obama would veto the so called "cut, cap and balance" amendment supported by House Republican freshmen and members of the Tea Party if it came to him for signature.
The bill includes a constitutional amendment that requires a balanced budget and allows the government to borrow $2.4 trillion more - but only in conjunction with large spending cuts.
Why is the US Government borrowing money at interest from a private bank that simply prints it up out of thin air when Article1 Section 8 of the US Constitution allows the US Government to create their own money interest free?
Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”
I think I speak for the vast majority of Americans who would rather have lower taxes and a government that shrinks, starting with the TSA, the IRS and the Department of let's-go-kill-the-brown-people-Israel-hates.
Following in the footsteps of a rather ignominious list of nations like Argentina and Hungary, the government of lreland is set to take its 'fair share' of private retirement funds.
Drowning in debt and faced with unpopular, unrealistic, ridiculously unpopular austerity measures, the government has announced that it will now tax private pension savings in order to raise 470 million euros (roughly $675 million) per year... a lot of money in a country of only 4.4 million people.
Somehow, the government expects to be able to create 100,000 jobs to bring down an unemployment rate at 14.7%. Perhaps they plan on hiring 100,000 new workers to go around the country and collect the tax.
Tax his cow, tax his goat,
Tax his pants, tax his coat,
Tax his crops, tax his work,
Tax his ties, tax his shirt.
Tax his tractor, tax his mule,
Teach him taxes are a rule,
Tax his oil, tax his gas,
Tax his notes, tax his cash;
Tax him good and let him know,
After his taxes he has no dough.
If he hollers, tax him more;
Tax him ’til he’s good and sore.
Tax his coffin, tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb:
“Taxes drove me to my doom.”
And after he’s gone, he can’t relax;
They’ll soon be after his Inheritance Tax!
Short of finalizing details and assuring enough bipartisan support, it's a done deal to slash Social Security, Medicare, Medicaid, and other social spending while leaving outsized military budgets and generous handouts to corporate favorites in place.
It’s not enough to frighten Americans with personal financial disaster if the massive debt scam is not perpetuated. In order to send the message, the government has decided to stoke up the al-Qaeda threat.
Those choices, however, ignore the proverbial one ton elephant perched on the piano in the White House: Defense and war spending.
Cuts in funding to Israel is also off the table.
Ron Paul: "Every Time the Federal Reserve Engages In More Quantitative Easing and Devalues the Dollar, It Is Defaulting on the American People by Eroding their Purchasing Power and Inflating their Savings Away.
Politicians need to understand that without real change default is inevitable. In fact, default happens every day through monetary policy tricks. Every time the Federal Reserve engages in more quantitative easing and devalues the dollar, it is defaulting on the American people by eroding their purchasing power and inflating their savings away. The dollar has lost nearly 50% of its value against gold since 2008.
Folks… you just can’t make this stuff up.
On July 6th, just two days ago, at least a dozen busybody Congressmen sponsored the introduction of HR 2411, the “Reduce America’s Debt Now Act of 2011.” They always come up with fantastic names for these pieces of legislation… and rest assured, the better/more patriotic the name, the more ominous the bill. This one follows the pattern.
HR 2411 states that every worker in America should be able to voluntarily have a portion of his/her wages automatically withheld and sent directly to the Treasury Department for the purposes of paying down the federal debt.
Giving this government more money is like giving a bottle of scotch and the keys to the family car to a bunch of teenage boys!
The next inevitable step will be to mandate just how much we all "volunteer" to send.
This fiscal crisis is about many things, but one of them is our inability to face death — our willingness to spend our nation into bankruptcy to extend life for a few more sickly months.
The NY Times has stopped further commenting or I would inform Mr. Brooks that medical care for the people is not the cause of this fiscal crisis, but the selling of this nation into the control of a private central bank issuing all public currency at interest, a system which by design produces more debt than capital. The fiscal crisis is the end result of nearly 100 years of living under the very same system of finance this nation fought a revolution to be free of.
I would remind Mr, Brooks that the cleaning up of Wall Street's Mortgage Backed Securities Fraud has cost the nation an estimated $27 trillion (by Dylan Ratigan's figures) which far exceeds the social security and medical costs. I would also remind Mr, Brooks that the money for Social Security and medicare was already paid TO the government via payroll deductions, but is unavailable now only because the government then mis-spent the funds elsewhere, as can be seen by reading the transcript from the 1998 Senate Budget Committee session, specifically the comments made by Senatyor Hollings.
HOLLINGS: "Well, the truth is...ah, shoot, well, we all know there's Washington's math problem. Alan Sloan in this past week's Newsweek says he spends 150%. What we've been doing, Mr. Chairman, in all reality, is taken a hundred billion out of the Social Security Trust Fund, transferring it over to the spending column, and spending it. Our friends to the left here are getting their tax cuts, we getting our spending increases, and hollering surplus, surplus, and balanced budget, and balanced budget plans when we continue to spend a hundred billion more than we take in."
The US Government took the money of the American people on the pretense of proving care for them in later years, then spent that money on wars of conquest, Wall Street Bailouts, and endless tithes to Israel. And now that the government is broke and unable to keep their promises to the American taxpayer who paid for all this comes this absurd article from the New York Times suggesting that really patriotic Americans just kill themselves to get out of the government's way. Wjat is needed is a government that says, "WE're sorry we embezzled your money and we resign" but what we get from Mr, Brooks is "You can solve the problem by killing yourselvesd!"
I suggest that if Mr. Brooks truly believes that death is the best solution to the nations fiscal policy that he lead by personal example.
PLEASE take a moment to send a very angry email to the editors of the New York Times expressing your utter disgust that the NY Times thinks old people should kill themselves to get the government that stole their Social Security off of the hook.
This op-ed made me so angry I can barely type!
FEDERAL "BORROWING" FROM SOCIAL SECURITY.
With a tanking economy and average Americans struggling to pay the bills, our so-called President is under the impression that 80% of the people of the United States seek even more taxes.
If Obama was only referring to taxing the extraordinarily wealthy, I would not have an issue with his proposal and indeed I think many Americans would agree with him.
For instance, if the top 25 highest-earning hedge fund managers paid taxes like every other working American, the deficit would instantly be reduced by roughly $44 billion.
Is this the tax increase that Obama is proposing? Is he planning on ending the billions in corporate welfare and off-shoring tax incentives?
Think they will ever voluntarily stop?
MUST READ OUTRAGE - Man Rots In Jail For Five Days, Loses Job & Car - All For Cashing A JPMorgan Chase Check At Chase Bank, Bank Admits Error One Year Later ONLY After Story Hits The Media
This is an unbelievable story befitting the U.S. Kleptocracy. Meanwhile Jamie Dimon gets a trillion or so of your money thru stealth bailouts, and the media gushes and celebrates.
It's been a year since the incident, and Chase didn't apologize until the story hit the local Seattle media, after the wrongly-imprisoned man lost his job and his car as a direct result of JPMorgan's error.
You are not going to believe these details.
Read this list, then you will understand why DC is trying to solve all their problems by mass murdering the rest of the globe.
According to the CIA World Factbook's ranking of trade account balances, Israel's economy is in the top 15% at
$6,269,000,000 while the United States is at the very bottom of the list with an account balance of
$-561,000,000,000. Yet despite Israel's obvious economic health compared to the United States, Congress continues to pour your money onto Israel. Here is what your money is being spent on.
Wow, you live in a ghetto, and think it's a middle class ghetto. Has all critical thinking stopped in the US ? (WRH are exempt from this of course).
So if you lived in a tent, would it be a middle class tent?
Are the homeless middle class too? Oh come on.
The average wage taken home by 11 million British workers will remain 'roughly the same' until at least 2015, experts have warned.
Think-tank Resolution Foundation said low and middle-income earners were not likely to benefit from the expected economic recovery.
It predicted that workers' pay in four years time would be the same as a decade ago, in 2001.
And it warned that government cuts to tax credits could make the situation even worse.
Unemployment rates rose in more than half of U.S. states in June, evidence that slower hiring is affecting many parts of the country.
Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.
Translation: They still do not know what they are doing.
According to the unemployment data released this morning, the economy added only 54,000 jobs, pushing the unemployment rate up to 9.1 percent. However, this report from MarketWatch suggests the data is much worse than that:
If Morgan Stanley is correct, about half of last month's job growth came from the venerable fast-food chain. That is hardly the sign of a healthy economy.
Don't look to state and local governments to prop up the job market.
To the contrary, this cash-strapped sector is set to go on a record-breaking layoff binge when the new fiscal year starts on July 1.
Borders Group will liquidate its remaining assets after efforts to find a buyer fell through, the bookstore chain announced Monday.
The nation's second largest book seller, which filed for bankruptcy protection earlier this year, currently operates 399 stores and employs approximately 10,700 workers.
Panasonic, the biggest Japanese maker of consumer electronics, announced a major reorganization Thursday under which it will cut thousands of jobs as it adapts its business to a changing global environment and absorbs recent acquisitions.
The Philadelphia Orchestra has decided to file for Chapter 11 reorganization. It is believed to be the first major U.S. orchestra to seek bankruptcy protection.
This is almost too hard to believe, but we have proof from the Cook County Auditor.
Alabama's largest county is laying the groundwork for filing what would be the largest municipal bankruptcy in U.S. history, over a more than $3 billion debt for its sewer system.
36 Statistics Which Prove That The American Dream Is Turning Into An Absolute Nightmare For The Middle Class
The U.S. middle class is being shredded, ripped apart and systematically wiped out. If you doubt this, just check out the statistics below. The American Dream is being transformed into an absolute nightmare. Once upon a time, the rest of the world knew that most Americans were able to live a middle class lifestyle. Most American families had nice homes, most American families had a car or two, most American families had nice clothes, most American families had an overabundance of food and most American families could even look forward to sending their children to college if that is what the kids wanted to do. There was an implicit promise that this was the way that it was always going to be.
WASHINGTON — U.S. manufacturing activity expanded in May at the slowest pace in 20 months, the latest sign that a sharp rise in energy prices is hampering economic growth.
The Institute for Supply Management, a trade group of purchasing executives, said Wednesday that its index of manufacturing activity fell to 53.5 percent in May from 60.4 in April. While that marked the 22nd straight month of growth, the decline was the biggest since 1984. Any reading above 50 indicates growth.
Rasmussen Reports - As members of Congress and the president haggle over ways to reduce the federal budget deficit, ratings for the bicameral legislature have fallen to the lowest level since late 2008.
The latest Rasmussen Reports national telephone survey of Likely Voters shows that nine percent (9%) now say Congress is doing a good or excellent job. Positive grades for the legislators are down from 13% last month.
Housing Prices Have Already Fallen More than During the Great Depression ... How Much Lower Will They Go?The Wall Street Journal noted Tuesday:
The folks at Capital Economics write in with this gloomy tidbit: “The further fall in house prices in the first quarter means that, on the Case-Shiller index, prices have now fallen by more than they did during the Great Depression.”
By their calculations, prices are now down 33% from their 2006 peak, compared with the 31% decline during the Depression.
It is official, this is the greatest depression in US history. Thanks a whole heap, government stooges, for selling us all into the slavery of a private banking system designed to plunge the world into enforced poverty.
New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.
Housing Apocalypse Tomorrow – 675,000 homes in foreclosure have made no payment in over two years. The never ending pipeline of troubled real estate.
There will be no sustainable housing recovery until the shadow inventory is cleared out. As of April with the latest data close to 6.4 million loans are delinquent or in foreclosure. This is a massive number of homes. What is downright disturbing of the 2.2 million homes in foreclosure you have 675,000 homes (31 percent of the pool) that have not made a payment in over two years. That is right, two full years.
One cannot use the phrase "economic recovery" with a straight face, looking at numbers like this.
When will we reach bottom in the housing market? With lenders filing foreclosures more slowly and an excess inventory of homes, housing prices could fall another 20 percent next year, says one economist. Gary Shilling, one of the economists who predicted the subprime mortgage crisis, says the "depressing effect" of two to 2.5 million homes in excess inventory will push prices down.
The US Government took your jobs so the banks could take your homes, to buy their way out of prison for the mortgage-backed security fraud.
You wanted concrete proof of widespread forged mortgage documentation?
State attorneys general are negotiating to give major banks wide immunity over irregularities in handling foreclosures, even as evidence has emerged that banks are continuing to file questionable documents.
KABOOM | NY Appellate Division | Bank of NY v Silverberg - MERS Does NOT Have The Right to Foreclose on a Mortgage in Default or Assign That Right to Anyone Else
The ubiquitous Mortgage Electronic Registration Systems, nominal holder of millions of mortgages, does not have the right to foreclose on a mortgage in default or assign that right to anyone else if it does not hold the underlying promissory note, the Appellate Division, Second Department, ruled Friday.
The treasurer of what was the nation's largest private mortgage lender has been sentenced to six years in prison for her role in a $3 billion fraud that contributed to the sixth-largest bank collapse in U.S. history.
Bank of America and its Countrywide unit will pay $8.5 billion to settle claims that the lenders sold poor-quality mortgage-backed securities that went sour when the housing market collapsed.
Which is a tiny fraction of the profits they made form the scam, the crooks never saw the inside of a jail cell, and the $8.5 billion will get sucked out of the customers.
Banks Offer JUST $5 Billion To Resolve Foreclosures, BofA CEO Sucks Billions At Predicting Housing Prices
Thieving bastards. The initial reports called for a settlement of $20 billion.
Story broke earlier this afternoon. A slap on the wrist for JP Morgan.
HA! HA! HA! - Tucson Mayoral Candidate Takes Ownership Of Hundreds Of Foreclosed Homes, Changes Locks, Kicks Out Real-Estate Agents And Posts "Do Not Trespass" Signs - And It's LEGAL
This is a bizarre, feel-good story of the banks, and Fannie and Freddie, getting a taste of their own medicine. Wait until you read these details. Foreclosure anarchy has now officially arrived.
Goldman Sachs is going to fire employees in the U.S. and some other countries so that it can hire 1,000 in Singapore, where it's cheaper.
Not much loyalty among the money-junkies, is there? And all those Goldman Sachs employees, who helped loot America? Think anyone in this country is going to feel like giving them a job?
This investigation has the potential to be a Mother of All Nightmares situation for the banks for a couple of reasons. For one thing, the decision to go after the securitization process is a total prosecutorial bullseye. This is the ugly heart of the wide-scale fraud scheme of the bubble era. Again, the business model during this time was a giant bait-and-switch scam. Sleazy lenders like Countrywide and New Century first created huge masses of bad loans, committing every conceivable kind of fraud to get people into loans (from doctoring income statements with white-out to phonying FICO scores to engineering fake appraisals).
Matt has, as usual, hit the bulls-eye on this article. The reason for the economic crash is that Wall Street got caught trying to pull the biggest financial swindle in history, and together with the US Government, looted the American people to cover the losses. But, while I respect Matt for his courage and accuracy, he is incredibly naive if he thinks this government will do anything more than pretend to have an investigation followed by an official declaration that the failure is spread among too many parties, and that therefore prosecutions of individuals will serve no real purpose. We will the be encouraged to "share the burden" to make things right with the investors stupid enough to trust Wall Street, and in true fascist economic fashion, the profits will be kept private and the losses socialized across all of America.
Losses so far $27 trillion (Per Dylan Ratigan), which means the average (non-rich) American has lost 23% of their net worth due to this looting. And, of course, said looting will continue as long as the American people sit still for the shearers.
A typical FTSE 100 executive enjoys a pay package of £3.75million – 145 times more than their workers receive, a report reveals today.
The High Pay Commission goes on to criticise fat-cat bosses for their ‘out of control’ pay.
The commission’s initial findings warn that income inequality has returned to levels not seen since Victorian England.
As a result, a tiny number of people are enjoying gold-plated pay packages while the majority of the country struggle to make ends meet.
New inflation figures were released by the government last week, and the news was not good. The headline inflation number was 3.2% in the 12 months that ended in April. That is more than a percent above the Federal Reserve’s “target” rate of 2% and the first time it has been more than 3% in over than 2 ½ years. Of course, the accounting gimmicks used by the Bureau of Labor Statistics (BLS) understate true inflation, so things look better than reality. Nonetheless, in the latest report from economist John Williams of Shadowstats.com, even the government’s own “official” numbers will likely show double digit inflation in the next three months or so...
Housing Crash Is Getting Worse, Home Values See Biggest Drop Since 2008, Fannie Mae Wants $9 Billion MORE
Day of reckoning for commercial real estate in 2012 – largest amount of loans maturing next year as $150 billion in CRE debt comes due. Federal Reserve running out of options in hiding financially disastrous real estate loans.
The Federal Reserve has tried its best to hide the secrets of past banking blunders deep in its balance sheet. Commercial real estate (CRE) loans made in haste during the real estate bubble are part of this national disgrace in banking folly. As the Federal Reserve and U.S. Treasury digitally print the dollar into oblivion the bad CRE loans still linger in the Fed balance sheet. As it turns out the Fed has become the dumping ground for all things real estate and has traded toxic loans for quality liquidity to fuel the banks back up. CRE debt in the form of empty shopping malls, failed hotels, and tumbleweed occupied strip malls is only a flavor of what the Fed is taking on. Yet many of these loans are still occupying the balance sheet of many banks.
Neglect and inadequate spending on roads, bridges, water lines and other vital infrastructure is "causing our nation to fall apart," according to Tim Galarnyk, host of "Inspector America" on the History Channel.
Mr. Galarnyk visited Pittsburgh today to sound the alarm about the nation's decaying infrastructure, waste in government and the need to boost the economy with spending on construction.
Standing with 10 construction workers at North Shore Riverfront Park, Mr. Galarnyk said "the United States of America is the best country in the entire world but our infrastructure is falling to the condition of third-world nations."
Going back to the land has always been thought of as a thing for hippies, eco-nuts, and doomsday survivalist, but now hedge fund managers are jumping on the bandwagon too.
The New York Observer recently spoke to such a hedge fund manager working on a fund that ranks as approximately the 15th largest farmer in America.
The media first picked up on the land investment pattern in 2008 in the February Times of London piece, “The Hedge Fund Manager Who Bought a Farm,” which detailed a British hedge fund manager’s attempt to play off the rising prices of grains in order to get a hold of local farmland. It was followed shortly by coverage by the Financial Times that said hedge funds and investment banks were “swapping their Gucci for gumboots”.
WASHINGTON (AFP) - The US House of Representatives passed a $690 billion Pentagon budget Thursday that bars American ground forces in Libya and limits the Obama administration's powers on handling Guantanamo detainees.
Lawmakers voted 322-96 in favor of the budget plan which met the Defense Department's request for $119 billion to fund the wars in Iraq and Afghanistan.
It also placed restrictions on President Barack Obama's authority to reduce the US nuclear weapons stockpile under the new START treaty with Russia, prompting a White House veto threat earlier this week...
WASHINGTON (AFP) - Defense Secretary Robert Gates on Sunday called for maintaining a powerful US military and warned against slashing its budget as a response to the country's fiscal troubles.
In one of his last scheduled speeches before he steps down at the end of June, Gates told students at the University of Notre Dame that the country could not afford to shirk its global responsibilities or to scale back its armed forces.
Max Keiser covers Warren Buffets'money laundering bank Wachovia.
Economic Collapse by Summer 2011 as a Result of Japan Crisis
The current arguments – much in the news – about cutting spending in the US are not exactly what they seem. They are likely aimed at imposing an IMF-style austerity on the US of the sort that developing nations throughout the world have found both onerous and ineffective.
This may well be what Obama was hoping you would not notice while he dangled a dead "Bin Laden" front of you all. "Austerity" is gov-speak for taking more money from you, and instead of using it to improve your life by building schools and hospitals, repairing roads and bridges, and generally improving the infrastructure, giving it to Wall Street to buy back those fraudulent mortgage-backed securities so that the Wall Street crooks who became fabulously wealthy with history's greatest financial scam don't have to use their own money to stay out of jail!
The worst is yet to come
Bangkok, Thailand May 1, 2011 - In a one hour April 26, 2011 talk before the Council on Foreign Relations (CFR), Secretary of the Treasury (and CFR member) Timothy Geithner laid out a frightening picture of America's economic future. Despite a myriad of metrics used to assure the audience that economic disaster had been averted before Geithner took to the podium, Geithner himself would stress the need for Democrats to cut back on programs while Republicans would need to rethink tax cuts as part of the long journey to real recovery.
While the devastating effects of America's bankrupted Ponzi-economy have yet to be fully realized, Geithner himself is saying that it will be over a decade before the full range of austerity measures are "locked in." Even if this was mathematically, financially, or politically possible, it would require such efforts to be made within an economic environment free of further abuse. As we will see however, Geithner has no intention of creating such an environment.
The Obama administration and leading Democrats and Republicans in the US Congress are preparing the next round of austerity measures directed at slashing public services, jobs and incomes for working people, to pay for the deepening crisis of American and world capitalism.
Treasury Secretary Timothy Geithner signaled the direction of administration policy in a speech Thursday to the Economic Club of Detroit, where he hailed the auto makers’ return to profitability—through drastic cuts in wages and intensified exploitation of labor—and reiterated Obama’s determination to make drastic spending cuts. “Reducing the deficit is a war of necessity,” he declared. “There is no alternative.”
This may well be what Obama was hoping you would not notice while he dangled yet another birth certificate on front of you all. "Austerity" is gov-speak for taking more money from you, and instead of using it to improve your life by building schools and hospitals, repairing roads and bridges, and generally improving the infrastructure, giving it to Wall Street to buy back those fraudulent mortgage-backed securities so that the Wall Street crooks who became fabulously wealthy with history's greatest financial scam don't have to use their own money to stay out of jail!
In a statement that is shocking many pundits, House Minority Leader Nancy Pelosi (D-CA) warned the country, “It is clear we must enter an era of austerity; to reduce the deficit through shared sacrifice.”
Meaning, you the people will sacrifice.
This is a repeat of Boehner's message from yesterday; the same message being echoed across the land by the servile media. "You must make do with less, so that we may have more." "You must make do with less, so that we may have more." "You must make do with less, so that we may have more."
Frankly, we are getting pretty damned tired of a Congress full of millionaires lecturing Americans working three jobs about "Austerity" and "Sacrifice!"
Why the focus on making YOU do the sacrifice?
Simple. The largest single chunk of US Government debt is not held by China, or the Saudis, or by the bankers, but by the American people. Social Security is NOT an "entitlement", nor is it "unfunded." You have all been paying into Social Security all of your working lives. There is a little box on that pay stub for the separate withholding put into that trust fund. The Social Security trust fund "invests" your money by purchasing US Government debt. You, the American people, through Social Security, hold more US Government debt than anyone else. About 20% of the total. Now that the US Government has bankrupted itself saving Wall Street from the consequences of the mortgage-backed securities fraud, they don't have enough money to cover all of their obligations.
That is right, the US Government is already in default, and they are looking for just who they can screw that won;t be able to fight back.
If the US Government fails to send the bankers the 11th marble, the US Government's credit rating will plunge and drive up the cost of all the current loans.
If the US Government fails to send payments to China, or the Saudis, or any other country, trust in the dollar will evaporate and the dollar will collapse.
So, the US Government has decided to screw the American people; to embezzle their retirements to save the bankers, because they are convinced you can't or won't do anything about it.
Pelosi is not going to call it "default" or "embezzlement." She calls it "Austerity", to make you think you are doing something noble by bending over and spreading your ass cheeks while the US Government simply keeps the cash they borrowed from your Social Security payments.
When you choose to live simply, that is austerity, but when the government forces you to live simply, that is poverty!
I have a message for Ms. Pelosi.
Back when TARP was passed, We The People of the United States opposed using our tax money to save the bankers from going to prison for the mortgage-backed security fraud. In fact, 90% of Americans opposed TARP and every other bailout (actually buy-backs) passed by the Congress. But Congress defied the will of the people and spent the taxpayer money buying back the fraudulent mortgage backed securities (aka the Toxic Assets) because Congress' own investment portfolios were tied up with those Wall Street corporations that perpetrated the fraud! And We The People all remember just how happy your congresscritters were, laughing and smiling, when you screwed the American people to save your own investments!
That is you on the left, isn't it Ms. Pelosi, happy as a pig wallowing in the people's slop?
I don't think so.
The new approach is "going to require some of you to make some sacrifices," he added, according to a person familiar with his remarks.
Meaning, you the people.
You see, the largest single chunk of US Government debt is not held by China, or the Saudis, or by the bankers, but by the American people. Social Security is NOT an "entitlement", nor is it "unfunded." You have all been paying into Social Security your entire working lives. There is a little box on that pay stub for the separate withholding put into that trust fund. The Social Security trust fund "invests" your money by purchasing US Government debt. You, the American people, through Social Security, hold more US Government debt than anyone else. And now that the US Government has bankrupted itself saving Wall Street from the consequences of the mortgage-backed securities fraud, they don't have enough money to cover their obligations.
That is right, the US Government is already in default, and they are looking for just who gets to eat the losses. If the US Government fails to send the bankers the 11th marble, the US Government's credit rating will plunge. If the US Government fails to send payments to China, or the Saudis, or any other country, the dollar will collapse.
So, the US Government has decided to screw the American people; to embezzle their retirements to save the bankers.
Boehner is not going to call it "default" or "embezzlement." He calls it sacrifice, to make you think you are doing something noble by bending over and spreading your ass cheeks while the US Government simply keeps the cash they borrowed from your Social Security payments.
Well, I have a message for Mr. Boehner.
Back when TARP was passed, We The People of the United States opposed using our tax money to save the bankers from going to prison for the mortgage-backed security fraud. In fact, 90% of Americans opposed TARP and every other bailout (actually buy-backs) passed by the Congress. But Congress defied the will of the people and spent the taxpayer money buying back the fraudulent mortgage backed securities (aka the Toxic Assets) because Congress' own investment portfolios were tied up with those Wall Street corporations that perpetrated the fraud! We The People warned you this course of action would lead to disaster, but you did it anyway. And now that you have spent some $27 trillion of the public's money to save Wall Street from going to prison and your own retirement from going bust, you dare presume to ask We The People to "sacrifice" our retirement to fix the mess we warned you not to get into?
Fuck you, Mr. Boehner.
Fuck the US Congress that voted to use the people's wealth to save the private bankers and now expect the American people to swallow the losses.
Fuck you, US Government.
The city of Central Falls, Rhode Island says they are so broke they had to give their retirees a dreaded ultimatum — give up 50% of your pension or risk losing it all.
As the size of government across the nation continues to spiral out of control countries and states across the nation are finding it increasingly difficult to pay their builds Central Falls, Rhode Island has been forced into giving their retirees a dreaded ultimatum.
But just think of all those Wall Street crooks you have kept out of prison with your "sacrifice."
The 400 richest Americans used to pay 30% of their income on the average to Uncle Sam. Today, they pay 18% on the average, according to Steve Rattner, a Wall Street financier, who just presented these figures on Mornings With Joe,MSNBC.
Personally, I think we are ALL taxed way too much and I prefer not to be tricked into fighting each other over who pays more or less by a government unable to control it's spending addiction and hoping you won't start hanging the bastards from the bridges when the next round of tax increases and social services cuts are announced.
The fact is that the government bankrupted this nation by spending $27 trillion to save Wall Street from having to go to prison for the mortgage-backed securities fraud. Then there is the Department of "Let's-murder-brown-people" which absorbs more than half of the nation's productivity to pay for insanely expensive weapons systems that usually do not work very well.
Add to that interest payments in yet more trillions to a private central bank issuing the public currency at interest, a system never intended by the nation's founders, and the flood of money poured all over Israel (four times the entire cost of the Apollo Moon Program so far) which funnels back through AIPAC to reward members of Congress for their generosity with your money (essentially a kickback scheme), and what you realize is that we could have a good life with 1/4 the taxes paid now if we only hung the greedy money-junky bastards who pray to a god they believe intends them to have all of life's blessings by default.
All taxes are too high.
All people pay too much in taxes. The fine details do not matter and we are fools if we let ourselves get tricked into arguing with each other while the real culprits settle down amidst what used to be our treasures and count themselves clever to have stolen it all and gotten away with it.
The wealth gaps between whites and minorities have grown to their widest levels in a quarter-century. The recession and uneven recovery have erased decades of minority gains, leaving whites on average with 20 times the net worth of blacks and 18 times that of Hispanics, according to an analysis of new Census data.
This is another blatant effort to make racism an issue for the 2012 election, as well as a "divide and conquer" tactic to get the population arguing among themselves rather than to deal with the true culprits that ruined the economy.
There are a very few white people who have indeed become insanely rich gaming the financial system, and their explosive wealth skews the census averages. The reality is that 99% of the white population have suffered from the economic decline as much as anyone else. The money junkies want blacks and whites to fight each other, so that you don't tar and feather the money junkies. It is an old trick. We have seen it before with the infamous Black Panther Coloring Book (created by the FBI to provoke racial discord among opponents of the Vietnam war) , and I think we are all sophisticated enough not to fall for it yet again.
Nobel Prize winner argues austerity measures limit growth; message aimed for Brussels or Washington?
Nobel Prize-winning economist Joseph Stiglitz said that countries adopting an austerity-based economic policy were sure to fail. Speaking in Copenhagen on Friday, he accused European leaders of what he called “deficit fetishism,” arguing that budget cutting in lean times retards rather than encourages economic growth.
Bloomberg News quotes the Stiglitz, a Columbia University professor, paraphrasing the famous Einstein quote about insanity. Said Stiglitz: “Austerity is an experiment that has been tried before with the same results.”
Regulators on Friday shut down banks in Florida, Georgia and Michigan, a total of five closures that lifted the number of U.S. bank failures this year to 39.
The operative word in the above sentence should be "so far".
And perhaps the "pace of closures has slowed...", but if there is any further downturn of an already depressed economy, we could well see that pace accelerate.
Starting June 25 of this year, Bank of America will start charging more and more of their credit card customers an APR of almost 30%. According to a letter that came in the mail today, that new rate would apply "indefinitely."
My readers are familiar with my forecast that the US dollar is in terminal decline. America is tragically bankrupt, unable to pay its lenders without printing the dollars to do so, and enmeshed in an economic depression. The clock is ticking until the dollar faces a crisis of confidence like every other bubble before it. The key difference between this collapse and, say, the bursting of the housing bubble is that the US dollar is the backbone of the global economy. Its conflagration will leave a vacuum that needs to be filled.
THE TEN COMMANDMENTS FOR THE NEW NATION.
RULE #1: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #2: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #3: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #4: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #5: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #6: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #7: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #8: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #9: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
RULE #10: NO PRIVATE CENTRAL BANKS ISSUING DEBT-BASED CURRENCY!
In the first case, Brussels is to investigate 16 financial institutions including Deutsche Bank, Credit Agricole, Barclays, Goldman Sachs and Citigroup suspected of collusion and monopolistic behavior.
This is to threat the fed that they better get the debt ceiling up and secure a QE #3
This is the warning for all the financial institutions involved in the Mortgage-backed security fraud that they better stop dragging their heels and all that bad paper, no matter how many Americans are made homeless by it.
US Ambassador to India Timothy Roemer announced yesterday he was quitting, hours after it became apparent that Boeing and Lockheed Martin had been dropped from a US$10billion order for warplanes for which President Barack Obama had personally lobbied New Delhi.
Don't you love how they treat this like it is a personal insult? Maybe the US just doesn't build really good aircraft at a good price any more. And maybe India is looking at how those American-designed reactors did in Japan and the fact that after Endeavor, the US will have lost its capability for manned spaceflight, suggesting a decline in technological prowess.
On the final stop of a five-day visit to Europe, the Prime Minister of China Wen Jiabao has signed a huge multi-billion euro trading agreement with Germany.
The slew of deals, estimated to be valued at about $15-bilion include the purchase of 88 Airbus A320 aircraft by China; and a pact for Germany to manufacture electric cars in China.
The "New American Century" has lasted a mere 11 years. America has given away its productivity in exchange for a drug called "get rich quick on Wall Street" and is in decline as a world power.
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 .
Brilliant move on China's part! They are taking that stack of spending cash Bernanke printed up to buy back some of that US debt, and now China will use it to save Europe, thereby undermining America's (and the IMF's) influence over that part of the world! Shah Maht (Checkmate); the game is over.
Our Politicians Are Selling Off Pieces Of America To Foreign Investors – And Goldman Sachs Is Helping Them Do It
All over the United States, politicians are selling off key pieces of infrastructure to foreign investors and big Wall Street banks like Goldman Sachs are helping them do it. State and local governments across the country that are drowning in debt and that are desperate for cash are increasingly turning to the “privatization” of public assets as the solution to their problems.
Pieces of infrastructure that taxpayers have already paid for such as highways, water treatment plants, libraries, parking meters, airports and power plants are being auctioned off to the highest bidder.
Eurocrats are about to demand an ‘outrageous’ budget increase of up to 12 per cent – three times the rate of inflation.
This means Britain’s contribution to running the EU – already £15.3billion a year – will rise by another £2billion.
The budget, being finalised by the European Commission, is a clear rebuff to David Cameron’s calls for belt-tightening in Brussels.
It will leave every family here handing over a total of nearly £700 a year to Europe just as they face an income squeeze.
Bust was yesterday. Too bad they don't charge Robert Rubin and other top execs for stealing from the American people.
With gold a stone’s throw away from $2,000 and already up 27% on the year, the objective investor might begin wondering how much higher both it and silver can climb. After all, gold is nearing its inflation-adjusted 1980 high – and that peak was a spike that lasted only one day.
First, let’s measure what today’s inflation-adjusted price would be if each metal matched their respective 1980 highs, along with the return needed to reach those levels:
Percent Climb to
Match 1980 High
Based on the CPI-U (the government’s broadest measure of inflation), gold is a couple of jumps away from matching its 1980 high of $850. Silver, meanwhile, has much further to climb and would return over three times our money if it reached its former peak.
But the CPI is a poor measure of real inflation. Let’s use John Williams’ Shadow Government Statistics calculations. His data are much closer to the real world, and the statistics are calculated the way they were during the Carter administration, stripped of later manipulations.
Check out how high gold and silver would soar if they adjust to this level of inflation:
Price to Match
Percent Climb to
Let’s look at one more measure. I think another valid gauge would be to apply the same percentage gain that occurred in the 1970s. From their 1971 lows to January 1980 highs, gold rose 2,333%, while silver advanced an incredible 3,646%. The following table applies those gains to our 2001 lows and shows the prospective returns from current prices:
Price to Match
1970s Total % Return
Percent Climb to
Match '70s Return
On Tuesday, Switzerland abdicated the crown as the safe haven currency and pegged itself to the Euro - 1.2 Swiss Francs to the Euro. This left a void. Who would step in as the safe haven currency? Everyone thought it would be gold and silver. Last night as we slept the Central Bank sold of about a billion dollars in gold to force the price of gold down. This caused the dollar to rise and sent money running to the stock market. This is blatant manipulation of the precious metals market because the Central Bank does not want the middle class having any safe harbor. They want them tied to the fiat paper currencies. In the end it won't work because China will stabilize the PM market but it worked yesterday as the Dow rose 275 and the S&P rose 33.38 points.
On Tuesday, Switzerland's National Bank sent shock waves through the market sending a clear and deliberate message to the world that it doesn't want to be the de facto safe haven currency.
For months and months, traders have been running to the Swiss franc amid the worldwide turmoil. With the Swiss stepping down as the world's safe haven currency, gold is now the de facto safe haven currency.
Lest there be any confusion there is now one king – gold. So I say “Long Live the King.”
There has always been a strong correlation between the price of gold and the price of silver. There has also always been a concept that silver, like gold was currency. Indeed, when I was a child growing up silver was currency. I never knew until I went to college that silver had a strong base in industrial usage and industrial use was responsible for a large demand for the supply of silver. Be that as it may, any negative news regarding the industrial use of silver has always been eclipsed by its role as a precious metal.
As gold prices rise, whether in the paper market or the physical market, silver surely benefits. This is because silver offers a greater exposure to the rising demand for a safe haven asset and does so at a cheaper price. Sadly, it has had to wear the thorny crown of being called “poor man’s gold.” I feel while this is a catchy phrase that allows gold to wear the crown of the king it, like most clichés, is untrue. Silver is the perfect currency for bartering. I can’t imagine using a gold double eagle as a medium of barter unless I was trading for a house.
Silver does have a high degree of volatility due to the health of the industrial sector. There a minute traces of silver in almost every electronic device that is made. Computers, IPads, IPods’, are a few examples of devices that use silver and when they are worn out or broken they end up in the landfill. At this time it is too labor intensive to make recycling the silver profitable but the day will come when that is not so.
Investing in silver brings many risks but in spite of these risks many investors still find silver a profitable investment. Indeed many investors say the return on investment (ROI) can far surpass gold exponentially as movements in the price over the last tear has shown. Over the next few years I expect gold to continue to rise in price and continue to reach new highs. I also expect silver to continue to outperform gold on a percentage basis. As gold has enjoyed a parabolic run in the last several months, when I look at the ratio of gold to silver I expect silver to continue to outperform gold and expect silver to be priced at about $80.00 by the middle of next year. Silver is the perfect alternative to gold.
According to the World Silver Survey 2011 world investment in silver rose 40% in 2010 to a new record of 279.3 million ounces. What I found fascinating was that the major demand came from the silver backed ETFs SLV, PSLV, SIVR, SIL, DBS and AGQ.. Physical markets also contributed to the demand.
Strong demand from Asian Markets was a large factor in the growth of import levels reaching record highs. I believe that it is purely human as silver’s allure is especially attractive to the growing middle class of China and India as silver is seen as a cheaper alternative to the safe haven of gold.
In conclusion, demand for silver in China grew by 67% between 2008 and 2010, according to the Hong Kong Mercantile Exchange, which recently began trading silver future contracts due to the amazing growth in the demand for silver. Growth in China and India in the physical markets alone is expected to grow another 30% this year. Physical bar and coin hoarding will continue to gain popularity amongst the Chinese investors as they prefer physical rather than future contracts. Silver demand from India is also expected to do well as the healthy monsoon seasons are increasing the purchasing power of rural Indian farmers who account for 60% 0f India’s total silver demand.
“The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the Renminbi [Yuan]."
Gold Surges To A New Record All-Time High Trading Above $1,645 Per Ounce As Markets Extend Their Longest Losing Streak Since The 2008 Financial Crisis
Gold futures topped $1,660 an ounce, extending a rally to a record, as escalating concern that the global economy is losing momentum spurred demand for the precious metal as an investment haven.
U.S. equities headed for the longest slump since 2008 after a report showed that consumer spending unexpectedly dropped in June for the first time in almost two years.
South Korea spent more than US$1 billion in its first gold purchase in more than a decade, as uncertainty about global growth and sovereign debt push central banks around the world to diversify foreign reserves.
For those of you who did not watch yesterday’s monetary policy hearing in the house of representatives, you most likely missed this bombshell exchange between Federal Reserve lawyer Scott Alvarez and committee chairman Dr. Ron Paul. My jaw literally dropped when I heard the Fed’s general counsel declare that the Federal Reserve owns no gold. After 1934, Alvarez explains that the Fed handed its gold over to the Treasury in exchange for gold certificates. When pressed further, Alvarez noted that the gold certificates do not represent any interest whatsoever in the gold itself. He explained the gold certificate listings on the Fed balance sheet, not as a claim to gold, but at most a claim to dollars from the Treasury.
So where did all the gold belonging to the people of the United States go, and is there nothing but tungsten fakes still in Fort Knox?
The Treasury document says it would cost about $15 million to conduct an audit. The process would take about 30 minutes to verify the gold content of each bar, or 350,000 man hours; to do that would would take 400 people working for six months, according to the document.
$15 million??? Are you kidding me??? ...
The giant middle class populations in Asia, especially China and India are buying physical gold bullion in volume due to concerns about global growth, in order to protect themselves from stubbornly high inflation and concerns about the declining value of their respective paper currencies.
Gold demand in China alone is expected to rise about 20% to near 700 tonnes this year from 570 tonnes in 2010.
Official figures show inflation at 6.4% but real inflation is likely higher and the authorities are struggling to tame annual inflation.
Some coverage of gold’s record nominal highs in recent days suggested that gold’s rise in value was due to investors “piling into” gold due to fears about the EU and U.S. debt crisis. The phrase “piling in” suggests that rising gold prices are due to speculative “hot money” and that therefore prices would fall as quick when the speculative money decides to sell.
However, Asian and central bank demand for physical gold bullion is not speculative rather it is smart money which is passively diversifying and buying and holding for the long term.
(Wall Street Journal) -- Gold Push Unlikely to Be Scrapped
(Bloomberg) -- Gold Advances as China Slowdown Reignites Global Economic Growth Concerns
(Reuters) -- PRECIOUS-Gold hovers around $1600/oz; euro zone summit eyed
(The Sun) -- £3 Billion Golden Yacht is World's Most Expensive
(Wall Street Journal) -- Family Loses Coins (Double Eagles) Worth Millions in Dispute With U.S.
(Reuters Africa) -- Hong Kong Mercantile Exchange to launch silver futures on July 22
(BBC) -- Is Now the Time to Sell Your Gold?
(ZeroHedge) -- Fed Preparing For US Default Says Plosser
(Got Gold Report) -- Gene Arensberg: Comex commercials pile on shorts in gold
(Forbes) -- Gold Is Truth, Unchained CPI Leads To A Dog-Food Diet
After the Western banking cabal engineered the "crash" of the global gold market in 1980, Western central banks spent more than a quarter-century perpetrating the lie that gold was a "barbarous relic" -- which was supposedly "inferior" to the worthless, un-backed paper they were cranking out (in record amounts) on their privately-owned printing presses.
Recent statistics released by the World Gold Council allow us to go even further. Over the past two years, the world's central banks have demonstrated a 100% unanimous preference for gold over their own banker-paper (i.e., all those un-backed "fiat currencies"). During that span of time, only three nations have been modest "net sellers" of gold -- and all three instances were related to "long term sales agreements" (i.e. old obligations). During the past two years, not one single central bank on the face of the Earth has chosen to be a net seller of gold over that time.
Swiss bank UBS said that gold, which cracked the $1,600 a troy ounce mark on Monday, will be the only precious metal with a supply deficit this year, as demand outstrips inventory for the first time since 2008.
With gold and silver strong this summer, today King World News interviewed James Turk
Gold climbed to a record in New York on concern that Europe’s debt crisis will spread. Silver prices surged the most since March 2009.
Ireland joined Portugal and Greece yesterday as the third euro-area nation to have its credit rating cut to below investment grade.
The dollar fell against a six-currency basket on signs that the Federal Reserve will continue to use monetary stimulus to revive the U.S. economy. Investors have boosted holdings of exchange-traded products backed by precious metals to more than $125 billion.
8 states quietly move to drop out of the Federal Reserve System.
Bernanke Fights Ron Paul In Congress: ‘Gold Isn’t Money’
"Only our paper and ink is money! Only DEBT is money! Huge piles of massive debt. Do you hear me? DEBT! YOUR CHILDREN SHALL BE OUR SLAVES FOREVER! BWAH HAA HAA HAA HAA... Let me go. I'm all right. I've calmed down."
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
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.
If I read this correctly, this only affects precious metals contracts on margin/leverage for future delivery (i.e. "Paper" gold/silver) but not coin dealers whose transactions are cash and carry.
I suspect this will drive down the immediate price for gold and silver in order to keep people in the equities market and Federal Reserve Note.
The problem with trying to make market calls about a highly volatile commodity like silver is that you get it right about as many times as you get it wrong.
With gold back above $1,550 and silver firming, today King World News interviewed Peter Schiff, President of Europacific Capital. When asked about the mining shares Schiff stated, “Well I think they are throwing these stocks away. I mean gold is less than $20 from a record high, yet if you look at the HUI (Gold Bugs Index) a 16% rally is what it would need just for the index to get back to where it was when gold was less than $20 higher than its current price. You look at some of the big gold mining companies, Barrick Gold is trading at 10 times forward earnings, 10 times earnings!
With gold stabilizing at $1,500 and silver near the $34 level, today King World News interviewed one of the top strategists in the world, 40 year veteran Robin Griffiths of Cazenove. When asked about the action in gold Griffiths had this to say, “I think the long-term trend for gold is absolutely in place and the final high is so far higher than we’ve been that there’s nothing to worry about. However, in the short-term it became overbought and it’s very likely to fall back to its 200 day moving average which is in broad numbers $1,400.
COMEX Registered Silver Bullion Inventories Fall Sharp 38.5% in Two Weeks – Risk of COMEX Silver Default Remains
Spot gold and silver prices rose slightly again this morning after hitting a one-month high yesterday as equity markets internationally came under selling pressure. The Moody's downgrade of Greece and worryingly poor US economic data again pushed investors to seek the safe haven of bullion. Gold reached new record nominal highs in sterling yesterday (£945.62/oz) as the pound fell on concerns about the UK economy.
With continued volatility in gold and silver and the US dollar falling back to the 75 level on the index, today King World News interviewed James Turk. When asked about the action in gold and silver Turk stated, “What we are seeing right now is a double-bottom in silver with gold staying strong near $1,500. With options expiration on both exchanges now behind us, we can expect a bounce from here.”
Reduce Leverage, Maintain Positions, Buy More Gold on Minor Weakness
Should you consider selling into any period of strength during the typical summer weakness? No, there are a number of reasons to continue holding gold during this time period. [Let me detail them one by one.]
Gold is already the true reserve currency and silver will join it, ERIC SPROTT tells BNN the markets already are recognizing gold as the true world reserve currency and that silver likely will join gold in that respect. He also reviewed the world economic situation generally. The interview is 16 minutes long in two parts and you can watch it at the BNN Internet site here:
CMC Markets, a broker out of Australia which offers Contracts For Difference (CFDs), has just formally joined the increasingly larger group headed by Forex.com (discussed on Saturday) which is now advising customers that gold and silver trading will be prohibited in a month. Specifically, CMC has said that beginning July 29, it will no longer offer nor roll any of its existing gold and silver CFDs.
Looks like the naked shorts got to be a major embarrassment. So Congress gave them an escape hatch.
When precious metals commentators (including myself) talk about the pathological fear/hatred which bankers exhibit toward gold and silver, we typically focus on their aversion to higher bullion prices – as being the “canary in the coal mine” which warns us that banker money-printing has spun out of control.
There is, however, an even more fundamental antagonism which the paper-pushing “elites” feel toward precious metals: the simple act of holding bullion is effectively an involuntary “de-leveraging” of the endless $trillions in bankster Ponzi-schemes which have totally contaminated nearly all Western economies.
And therein lies a great motive for Congress to shut down over-the-counter trading in precious metals!
Fiat currencies the world over are being manipulated by central banks, which is distorting asset and commodity prices. Successful investing requires that investors have a good idea of what things cost and what they are really worth – and using the world’s oldest and most stable form of money, gold, to compare prices is one way to get that insight.
To that end, below is a sampling of current prices measured in grams or milligrams of gold. Price comparisons are against prices as of June 10.
Price in Gold
Price in Gold
1-3 Year (SHY)
20+ Year (TLT)
Price in Gold
Price in Gold
South Carolina lawmakers are proposing a bill that would give the state another form of legal tender.
Sen. David Thomas, a Republican from Greenville, wants to make gold and silver coins another option in the Palmetto State. Lawmakers are calling it the Sound Money Legislation.
"I'm no financial expert but am I smart enough to know that you can't keep printing money when it has no backing," says SC Republican Representative Mac Toole.
Watch other states with some degree of intelligent leadership follow South Carolina's lead on this; the US dollar is in real peril of falling, and fast.
However, Bloomberg reported this week that central banks around the world, who were net sellers of gold a decade ago when it was a bargain, are now net buyers of gold, indicating that gold may be poised to reach $2000 an ounce:
Francisco Blanch, the head of commodities research at Bank of America Merrill Lynch, said "Central banks in emerging markets may aim to hold 2 percent to 8 percent of their foreign-currency reserves in gold." China currently keeps only 1.6% of its reserves in gold, but is reportedly planning to invest at least another trillion dollars in gold.
Given that there are no indications that the Federal Reserve is planning to change its monetary policy in the near term, experts expect that gold will continue to climb to new record highs because of a weakened dollar and increased demand for a stable store of wealth.
The European Gold Confiscation Scheme Unfolds: European Parliament Approves Use Of Gold As Collateral
Wonder why Europe is pressing so hard for Greece (and soon the other PIIGS) to collateralize its pre-petition loans on a Debtor in Possession basis? Here is your answer: "Yesterday’s unanimous agreement by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) to allow central counterparties to accept gold as collateral, under the European Market Infrastructure Regulation (EMIR), is further recognition of gold’s growing relevance as a high quality liquid asset. This vote reinforces market demand for a greater choice of assets that can be used as collateral to meet margin liabilities." Luckily for Greece, it has 111.5 tons of gold in storage (somewhere at the New York Fed most likely).
This is why I urge caution about a new gold standard. While a value-based state-issued currency is essential to freedom, using a gold standard simply re-enslaves us to thew bankers because most of the gold already is or soon will be in the hands of the very people who destroyed the global economy with their ink and paper fraud.
In an otherwise quiet article on central banks today, Bloomberg quoted an analyst who says China may use a third of their $3 trillion in foreign reserves to purchase gold.
China has been moving away from the dollar, and into alternative stores of wealth for years now.
But $1 trillion in gold? If it happens, such a large move would be a sharp rebuke to the dollar's status as reserve currency, to say the least.
China, which has just 1.6 percent of its reserves in gold, may invest more than $1 trillion in bullion, [Michael Pento of Euro Pacific Capital] said. “China wants to be an international player, and they need to own more gold than they currently have.”
...China, with more than $3 trillion in foreign-currency reserves, plans to set up new funds to invest in precious metals, Century Weekly reported this week. Russia purchased 8 tons of gold in the first quarter.
Then the uptrend will continue, intact. And they'll say, "bubble! bubble bubble bubble bubble bubble!", again.
And gold bugs will be laughing all the way to the vault.
Geithner can continue to scream about preserving a "strong, sound dollar" as the Fed's fiscal policy, but it is crystal clear that the Fed is behaving in ways to bring about the absolute opposite outcome from that.
China's asset managers, who have been approved to raise $70 billion for allocation overseas, are seeking additional funds to invest in gold and precious metals as soaring inflation spurs interest in alternative assets as a way to protect wealth.
SALT LAKE CITY — Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being "as good as gold."
To make that point, they've turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes.
Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow.
The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings.
"We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!" So aside from this first public confirmation that one of the biggest wholesale retailers of precious metals is now inventoryless [sic], we can certainly see why Asia has decided to take silver down in the afterhours electronic session.
BIG NEWS!!! Apmex Starts Reverse Inquiry: Seeks To Buy "Any Quantity" Of Silver From Clients At $3 Over Spot
The Federal Reserve is Responsible for the last 2 Decades of Economic Turmoil
1. Beginning with the Savings & Loan crisis in 1990, each engineered crisis is growing in intensity and carnage. First, there was the Internet bubble crash then the Real Estate bubble meltdown and now we are at the footsteps of an unprecedented acceleration of price increases in food and energy.
In 2007, commodity prices soared when there was actually a slowdown in the global economy. There was no reason for commodity prices to go ballistic at that time, except for federal reserve intervention. The price of oil went from $78 to $147. High gas prices actually burdened the average US consumer with an additional "tax" of five hundred billion dollars.
Gold futures rose to a record $1,530.30 an ounce on speculation that the Federal Reserve will be slow to raise U.S. borrowing costs, weakening the dollar and boosting the appeal of the metal as an alternative asset.
Namely that during the last major precious metals bull market in the 1970s, only about 10% of the world could own gold – either due to legal restrictions or a lack of liquid capital.
Today, few countries prohibit gold ownership, and a far higher percentage of the world’s population has transitioned out of poverty.
China provides the most germane example, having legalized gold and silver ownership for private citizens in 2004, and through the explosive growth in national GDP that has caused Chinese gold purchases to skyrocket.
How The Comex Lost 20% Of Its "Registered" Silver In One Week, Or Where There's Smoke Of A Run, There's Probably A Run
Thursday and Friday marked the first gathering of the members of the Giving Challenge—a philanthropic mission started by Bill Gates and Warren Buffett that calls for the world’s richest people to pledge to give away at least half of their wealth.
I was getting reports of a strange gathering of very expensive jets in Arizona, and this is the cover story for what went on.
Now, maybe these guys really do plan to give away half their money (Bill? Warren? See the donations button top of this page) but frankly this comes into the "too good to be true" category, and sounds a lot like the NESARA and CAFR hoaxes we have heard before.
Bill Gates is very much into saving the planet from us icky-poo human beings. So is Warren Buffet. Both men have been buddy-buddy on this issue for a while.
That one of the ultra-expensive corporate jets seen at the Airport alongside those of the other attendees is registered to a major pharmaceutical corporation should ring the alarm bells, given Bill Gates open declaration that vaccines should be used to reduce world population, and the cases where the Vaccines such as Gardasil cause sterility.
Between the oil in the Gulf of Mexico, and radiation pouring into the Pacific, there simply is not enough uncontaminated food to feed all the humans on Earth. Fukushima may have been the initiating event for this gathering of the ultra-rich, to plan for depopulation If the stupid Christians and stupid Muslims cannot be tricked to murdering each other in the millions, some other means to drastically reduce the human population must be found, of the ultra rich will be eaten by the ultra-poor.
Because if you believe money-junkies are about to just give away half of their wealth, I have some of Saddam's 'nookular bombs' to sell you.
From Foundations, Depopulation & the Taxpayer
The director of the Trade Promotion Organization of Iran in a meeting with the Chinese ambassador in Tehran said that Iran and China can boost mutual trade by establishing a joint bank and using national currencies for their transactions.
IRNA news agency quoted the TPOI director, Hamid Safdel, as saying that the two sides could create a joint trade committee at the ministerial level, and pointed out that the countries would be better off if they signed an MOU on trade and customs cooperation.
He added that the two countries’ joint economic committee would help expand bank relations and ease opening letters of credit as well as establishing commercial firms.
The US Congress (the finest congress money can buy) sneers at Iran on behalf of Israel ... and drives Iran into China's sphere of influence!
Well done, idiots.
Geithner Sends Doomsday Letter To Congress Predicting Double-Dip Recession If Debt Ceiling Not Raised
The global Ponzi must go on! Taking his cue from fellow terrorist Hank Paulson, Tim Geithner threatens Congress with all manner of disaster and destruction if they refuse to raise the debt ceiling.
We have a copy of Geithner's letter to Senator Michael Bennet of Colorado.
TONY Blair received £400,000 from a fund for disadvantaged children to set up an office in a five-star hotel.
Prime Minister David Cameron revealed the money came from the Department for International Development (DfID) and is meant to fund humanitarian work in developing countries.
But it was spent on rooms at the exclusive American Colony Hotel in Jerusalem, where Mr Blair spends one week a month in his role as peace envoy to the Middle East. The 19th century hotel near the old city of Jerusalem is one of the most exclusive in Israel. A suite costs £550 a night.
Officially announced about an hour ago.
Strauss-Kahn has shown the world the sort of moral degenerates in charge of the global economy. I mean, here is a guy with more than enough money (looted from you) to hire the services of the world's most beautiful call girls, and he still decides to force himself on the hotel maid. Apparently this is not the first time Strauss-Kahn has been in trouble, and from the IMF's prior record of looking the the way (and finding the involved female another job at another financial institution) , such behavior by IMF top management is apparently considered acceptable by the IMF top management.
So, are you willing to let the Congress plunge you into debt-slavery to people who have the manners and morals of Medieval warlords?
Why was Stauss-Kahn in New York ? He went there instead of flying direct from Washington to Berlin, first stop on a European tour and first meeting set with chancellor Merkel of Germany. To reassure Merkel that the next bailout of Greece would cost little to German finances, that the euro would stay strong and credible because the US dollar was now close to terminal meltdown - and was receiving special treatment from the IMF.
Stauss-Kahn is the mastermind of the IMF plan to impose a global Federal Reserve system on the nations of the world (and wage war on those that, like Libya, refuse). In that context, the absence of morality required to orally rape and sodomize a hotel maid (not necessarily in that order) seems like a foregone conclusion!
Yesterday, a New York police spokesman said the IMF chief did not have the right to diplomatic immunity.
FOX News is reporting that Dominique Strauss-Kahn was escorted from the courtroom where he was to be arraigned without any explanation given.
UPDATE: Dominique Strauss-Kahn has been returned to the courtroom where he is to be arraigned. Again, no explanation given for the strange absence, but in all likelihood a deal has already been made to keep the head of the IMF out of jail. After all, the debt-enslavement of the world cannot be delayed in the slightest by such a silly thing as the oral rape and sodomy of a mere servant!
BREAKING: Lawmaker Alleges IMF Chief Strauss-Kahn 'Victimized Several Maids During Past Stays At Same Hotel'
It just keeps getting worse for DSK...
Here's a nugget from another story. Our question is 'tax-free' where?
In France or the U.S.?
New figures released by the OECD predict 2.2 percent economic growth for Iceland this year and 2.9 percent next year.
Apparently throwing out the Government and jailing the banksters works!!!!
The Army, in a year-long war games series called Unified Quest 2011, is looking at a variety of possibilities and how to deal with them, including:
* how to maintain “domestic order amid civil unrest”
* and ways to deal with fragmented global power and drastically lower budgets
Wall Street Executive Air: "In The Unlikely Event Of A Loss In Profits, Bailout Funds Will Drop From The Panel Above Your Head"
Stop - Watch This One - Runs less than 2 minutes
It's quite a brilliant bit of satire...
The heads of the UK’s biggest firms saw their pay soar by nearly a third during 2010 – but the value of their companies rose by only 9%, research indicated.
The chief executives of FTSE 100 groups received remuneration packages averaging £3.5 million last year, 32% more than they were paid in 2009, according to consultancy firm MM&K and electronic voting agency Manifest.
But the FTSE 100 increased in value by just 9% during the same period, suggesting a weakening in the link between chief executives’ pay and their performance.
Via: Federal Business Opportunities:
The Federal Emergency Management Agency (FEMA) procures and stores pre-packaged commercial meals to support readiness capability for immediate distribution to disaster survivors routinely. The purpose of this Request for Information is to identify sources of supply for meals in support of disaster relief efforts based on a catastrophic disaster event within the New Madrid Fault System for a survivor population of 7M to be utilized for the sustainment of life during a 10-day period of operations. FEMA is considering the following specifications (14M meals per day):
http://RTR.org | http://FreedomsPhoenix.com |
"A ‘91-style meltdown is almost inevitable." So says Alexei Moiseev, chief economist at VTB Capital, the investment-banking arm of Russia’s second-largest lender, discussing the imminent economic catastrophe that is sure to engulf Belarus following the surprise devaluation of the country's currency by over 50%, which we announced on Monday. "Unless Belarus heeds Russia’s call for mass privatization of state assets, it is headed for “hyperinflation, massive un- and under-employment, and a shutdown of production" Moiseev concludes....
J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank- by far the most powerful Fed branch- by just eight families, four of which reside in the US. They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.
CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed.  The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.
Citizens United v Federal Election Commission (FEC) (08-205), a landmark decision of the US Supreme Court, was reported to have accorded corporations First Amendment rights.
The ruling was a “decision holding that corporations and unions can spend unlimited amounts of money in election campaigns… a stunning example of judicial activism…” as Human Rights Alert head, Dr. Joseph Zernik highlighted today.
As of yesterday, however, Dr. Zernik has evidence that the Corporation Corporate Rights ruling "cannot possibly be a valid court record" he said. Dr. Zernik lists the following four reasons:
It is a record dated January 21, 2010, whereas the online docket noted the issuance of a Judgment on February 22, 2010.
A few months ago we looked at Irish CurrencyFair, a peer-to-peer site that effectively removes banks and other middlemen from currency exchange. Pushing the peer-to-peer concept even further into the world of finance, Bitcoin is a collectively managed and open-source digital currency that's completely independent of any central authority.
China laid out plans for its future in space yesterday, unveiling details of an ambitious new space station to be built in orbit within a decade.
The project, which one Nasa adviser describes as a "potent political symbol", is the latest phase in China's rapidly developing space programme. It is less than a decade since China put a human into orbit for the first time, and three years since its first spacewalk.
The space station will weigh around 60 tonnes and consist of a core module with two laboratory units for experiments, according to the state news agency, Xinhua.
The American secret service, the CIA, could be responsible for manufacturing the nearly-perfect counterfeit 50 and 100-dollar-notes that Washington pins on the terror regime of North Korea. The charge comes after an extensive investigation in Europe and Asia by the Sunday edition of the Frankfurter Allgemeinen Sonntagszeitung of Frankfurt, and after interviews with counterfeit money experts and leading representatives of the high-security publishing industry.
Two senators are pressing federal authorities to crack down on an online black market and "untraceable" digital currency known as Bitcoins after reports that they are used to buy illegal drugs anonymously.
Cash is also untraceable and used to buy drugs, so that is clearly not the issue here. and indeed any alternative currency system, is a direct threat to the enslavement of the American people by the privately-owned Federal Reserve Bank. The Ponzi-scheme bankers know full well that a popularly adopted alternative currency system will draw people and resources away from the central bank, which is already on the verge of collapse and cannot survive a run on deposits.
So these Senators are not really interested in the drug issue but in preserving the financial status-quo.
I really wasn't paying attention to the bitcoin issue, but now that these Senators have come out against it, the "Banned in Boston" effect has kicked in and I will be paying more more attention!
The Bitcoin digital currency also works a lot like cash in that it's anonymous. When you go to a flea market and pay cash for an old Commodore 64, there's no record of the transaction. You don't have to know the seller's name, and the seller doesn't need to know yours. Digital currencies by contrast rely on accounts, and have to collect at least some information about you. Because Bitcoin employs no such accounts and instead relies on public key cryptography, there's no way to know, just looking at the database of transfers, who sent money to whom.
The BitCoin concept itself looks like a great way to operate free of private central banking and I am not surprised to see so many old-style central bankers and their pet congresscritters angry and upset that We The People might actually break free of the bankers' enslavement. Nor, given the abuses by the aforesaid central bankers and their pet congresscritters, am I surprised to see how quickly BitCoin has become popular.
After being shown a BitCoin mining server by the folks at PC Gamerz, I am puzzled. As I joked with them, they are tying up $5000 worth of computer for $10 worth of (a piece of) a BitCoin. I am not sure that even covers the increase in the electric bill here in Hawaii, and with the short life-span of computer equipment sold here in the USA, the attrition on those GPU cards must be factored in.
Here is my problem.
The BitCoin mining software uses a LOT of computer power for what we are told is a simple peer-to-peer cash system. Peer-to-peer file sharing does not require that kind of raw compute power. Neither does the level of digital signing the peer-to-peer cash system claims to use. There is a huge amount of computer power being expended on other unknown tasks. Some articles on just how BitCoins are awarded speak of "solving blocks", and therein lies my concern. As a part of the mining for BitCoins, a huge amount of computer power is being spent on cryptographic processing of these blocks, and nobody really knows for certain what is inside those blocks.
I am concerned that the BitCoin miner, along with passing BitCoins hither and yon, is actually a vast distributed code key-breaker, as I cannot think of anything else requiring that kind of computer power (as NSA's rumored expenditure on exaflop computers suggests). With enough raw computer power chained together in a few million BitCoin users, brute-force breaking the keys of asymmetric encryption becomes achievable, even convenient. Great if the perps are reading Iran's government communications or congressional text messages, but not so great if the target is banks, SSH transactions, https, utilities, and secured emails.
Modern computer crime has become very sophisticated, and cyber-criminals (and the NSA) would not hesitate to exploit a popular new peer-to-peer cash system to create a vast distributed key-breaking system.
New grassroots cyber currency, the Bitcoin, may provide the perfect vehicle to operate outside the establishment economy and snub the all-powerful banking cartels -- it's decentralized, quasi-anonymous, and its supply is regulated by an algorithm to actually create deflation over time.
The masses are beginning to understand that the greatest threat to human freedom is the international banking cartel and their debt-based monetary system. Together with governments, they squash any manifestation of a free marketplace and personal freedom. Between runaway money printing, corporate cartel control, subsidies and taxes, and regulations and fees; the free market is nothing more than an ideology -- for now...
First, you ignore the charges, hoping the information will not be given widespread distribution. If the information starts reaching too many people, you ridicule the information and the person or persons giving the information. If that doesn't work, your next step is character assassination. If the author or speaker hasn't been involved in sufficient scandal, you are adept at fabricating scandal against the person or persons. If none of these are effective, you are known to resort to physical attacks. But, NEVER do you try to prove the information wrong.