Émission de radio L'Autre Monde

Émission de radio L'Autre Monde

mercredi 18 mars 2009

L'Autre Monde 19 mars 2009: La bulle des produits dérivés de 700 000$ milliards éclate & Le Canada qui n'est pas un pays (2/2)


L'Autre Monde 19 mars 2009: La bulle des produits dérivés de 700 000$ milliards éclate & Le Canada qui n'est pas un pays (2/2)

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L'Autre Monde 19 mars 2009

60 min / Radio de l'UQAM, CHOQ FM

Diffusion en direct : Jeudi à 11:00h
Animation : François Marginean
Archives d'émission

Émission du 19 mars 2009:

-Dossier de l'économie: L'Autre Monde disséquer et analyser toutes les informations cruciales pour que les auditeurs puissent avoir une meilleure compréhension des véritables enjeux. Ce dossier occupe une partie prédominante de l'émission de cette semaine. Nous effectuons un tour de la situation en Amérique du sud et particulièrement au Mexique et en Bolivie en plus de parler de machine à voter électroniques, d'impôts, de gouvernements illégitimes et du Canada qui n'est pas un pays alors que les provinces le sont toutes individuellement.

Ne manquez pas aussi la semaine prochaine, notre émission spéciale de 1h30 avec notre invité Ghis (anciennement Ghilaine Lanctôt), auteur de la Mafia Médicale et de Madame Ghis, évasion en prison.

Soyez au rendez-vous les jeudis à 11h sur les ondes de CHOQ FM!

***Hyperliens vers les sources des informations discutées sur l'émission d'aujourd'hui:

L’assouplissement quantitatif

Une guerre mondiale au secours de l'Empire américain

par Jules Dufour

Mondialisation.ca, Le 3 mars 2009

The American Rome Is Burning - So Let's Attack Iran

Obama's sensible idea was greeted with the deepest dismay by ardent supporters of Israel and Rambo Republicans who want to see the US go to war with Iran, a nation of 70 million, and destroy its nuclear infrastructure.

Now, as the United States fights for its economic life, the Iran question and its alleged nuclear weapons program have again become an issue of major contention. Officials in the Obama administration and the media issued a blizzard of contradictory claims over Iran's alleged nuclear threat, leaving us wondering: who is really charge of U.S. foreign policy?

'Run on UK' sees foreign investors pull $1 trillion out of the City
March 7, 2009, The Independent (One of the U.K.'s leading newspapers)

A silent $1 trillion "Run on Britain" by foreign investors was revealed yesterday in the latest statistical releases from the Bank of England. The external liabilities of banks operating in the UK – that is monies held in the UK on behalf of foreign investors – fell by $1 trillion (£700bn) between the spring and the end of 2008, representing a huge loss of funds and of confidence in the City of London. Some $597.5bn was lost to the banks in the last quarter of last year alone, after a ... massive $682.5bn haemorrhaged in the second quarter of 2008 – a record. About 15 per cent of the monies held by foreigners in the UK were withdrawn over the period. This is by far the largest withdrawal of foreign funds from the UK in recent decades – about 10 times what might flow out during a "normal" quarter. The revelation will fuel fears that the UK's reputation as a safe place to hold funds is being fatally compromised by the acute crisis in the banking system and a general trend to financial protectionism internationally. The slide in sterling – it has shed a quarter of its value since mid-2007 – has been both cause and effect of the run on London, seemingly becoming a self-fulfilling phenomenon. The danger is that the heavy depreciation of the pound could become a rout if confidence completely evaporates. Paranoia that the UK could follow Iceland into effective national insolvency and jibes about "Reykjavik on Thames" will find an unwelcome substantiation in these statistics.

Note: For many deep revelations of the realities of the world financial crisis from reliable sources, click here.

Bair Says Insurance Fund Could Be Insolvent This Year
March 4, 2009, Bloomberg News

Federal Deposit Insurance Corp. Chairman Sheila Bair said the fund it uses to protect customer deposits at U.S. banks could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency. “Without these assessments, the deposit insurance fund could become insolvent this year,” Bair wrote in a March 2 letter to the industry. “A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions.” The fund, which lost $33.5 billion in 2008, was drained by 25 bank failures last year. Sixteen banks have failed so far this year, further straining the fund. Smaller banks are outraged over the one-time fee ... Camden Fine, president of the Independent Community Bankers of America, said yesterday. The agency, which has released the change for 30 days of public comment, could modify the assessment to shift the burden to the large banks “that caused this train wreck,” Fine said. “Community bankers are feeling like they are paying for the incompetence and greed of Wall Street,” he said. Consumers should watch this issue closely, said Edmund Mierzwinski, consumer program director at U.S. PIRG, a Boston- based consumer-watchdog group. “I wouldn’t take their money out of the bank yet,” Mierzwinski said. “If the FDIC is saying that there is this serious problem, then we should all be concerned. I think there is a chance the FDIC is going to have to ask taxpayers for money in the future.”

Note: For lots more on the financial crisis from reliable sources, click here.

The dangers of printing money: four lessons from history

The hope is that the money pumped into the economy will encourage banks to become more relaxed about lending to individuals and businesses.

1. Weimar Republic (1923)

The German Government resorted to printing money to pay its bills sparking a hyper inflation that destroyed the value of the currency and the savings of ordinary Germans as money lost all value. The rest, as they say, is history and an ugly one at that.

2. Zimbabwe (now)

As in Weimar Germany this has unleashed the horror of hyper-inflation - Zimbabwe has the highest inflation rate in the world, a terrifying 230 million per cent.

3. Revolutionary France (1789)

The massive printing sparked inflation immediately - not something that is expected in the UK since the economy is so stagnant. Seven years later the French economy was in ruins

4. Japan (2001)

Japan's attempt to flush itself out of recession by printing yen didn't lead to disaster - in fact, it didn't really lead to anything, which was its main problem. It did little to encourage Japanese banks to increase lending. Instead the banks, simply sat on the cash or lent it to overseas borrowers.



95% (2569 votes)


5% (149 votes)

Total votes: 2718

Brown says he hasn’t filed federal, state taxes in 2 years

Nearly 10 percent of Georgia state legislators are late filing or paying their state taxes, and state Sen. Robert Brown is apparently among them.

Brown, D-Macon, said Wednesday he’s not sure whether he actually owes the state or federal government any money because he hasn’t filed tax returns. He said he’s gotten extensions, but he declined to give more information or say for what years he received filing extensions.

What Cooked the World's Economy?

It wasn't your overdue mortgage.

Webmaster's Commentary:

The sub-prime mortgage debacle only lost $1.2 trillion. The US Government has already spent 5 times that without a sign of the economy coming out of free fall.

Sub-prime borrowers are getting the blame from the corporate media, but it was Wall Streets high-rollers that brought the casino down.

The $700 trillion elephant

Try as we might to salvage the residential real estate market, it's at best worth $23 trillion in the U.S. We're struggling to save the stock market, but that's valued at less than $15 trillion. And we hope to keep the entire U.S. economy from collapsing, yet gross domestic product stands at $14.2 trillion.
Compare any of these to the derivatives market and you can easily see that we are just closing the windows as a tsunami crashes to shore.

The total value of all the stock markets in the world amounts to less than $50 trillion, according to the World Federation of Exchanges.

The US Collapse Of 2009 - This Will Blow Your Mind......

Majority Of U.S. States Join Sovereignty Movement, Assert 10th Amendment Rights

The banks want the economy to collapse so they can grab real assets and power. Their whole monetary system is a giant ponzi scheme designed to fail because money is based on the issuance of debt, and the interest owed is not put into the system except through more debt with more interest.

The stock market has dropped 50% in value since this started last year. This is a great depression.

Stock Decline Hits Depression Levels

Money invested 10 years ago in stocks have lost half their real value, matching the worst ten years of the Great Depression

Bailout The United States Treasury: The Last Remaining Asset Bubble Is Cracking

Prices of US Treasuries fell for a third consecutive day Thursday as excess supply swamped the market for government debt. Today's specific culprit was a huge 7-year note auction, though we are at last seeing an overall awakening by bond traders to the reality that a mountain of supply is coming and it will not be slowing down. The first cracks are finally beginning to show in the last remaining asset bubble. Delicate fiscal issues never discussed openly as recently as 12 months ago, are now standard fare. The economist wondered aloud if the US will be forced to default. Clusterstock has asked 'Default or Hyper-inflation? An academic paper is floating around questioning the solvency of the Fed.

The Fate of Paper Money

"Paper money eventually returns to its intrinsic value - zero."

(Voltaire, 1694-1778)

Britain Monetizes Its National Debt

The dollar and the pound are about to become the two worst performing asset classes on the planet.

The Two Documents Everyone Should Read to Better Understand the Crisis

The FBI has been warning of an "epidemic" of mortgage fraud since September 2004. It also reports that lenders initiated 80% of these frauds.

The widespread claim that nonprime loan originators that sold their loans caused the crisis because they "had no skin in the game" ignores the fundamental causes. The ultra sophisticated buyers knew the originators had no skin in the game. Neoclassical economics and finance predicts that because they know that the nonprime originators have perverse incentives to sell them toxic loans they will take particular care in their due diligence to detect and block any such sales. They assuredly would never buy assets that the trade openly labeled as fraudulent, after receiving FBI warnings of a fraud epidemic, without the taking exceptional due diligence precautions. The rating agencies' concerns for their reputations would make them even more cautious. Real markets, however, became perverse -- "due diligence" and "private market discipline" became oxymoronic. These two documents are enough to begin to understand:

  • the FBI accurately described mortgage fraud as "epidemic"
  • nonprime lenders are overwhelmingly responsible for the epidemic
  • the fraud was so endemic that it would have been easy to spot if anyone looked
  • the lenders, the banks that created nonprime derivatives, the rating agencies, and the buyers all operated on a "don't ask; don't tell" policy
  • willful blindness was essential to originate, sell, pool and resell the loans
  • willful blindness was the pretext for not posting loss reserves
  • both forms of blindness made high (fictional) profits certain when the bubble was expanding rapidly and massive (real) losses certain when it collapsed
  • the worse the nonprime loan quality the higher the fees and interest rates, and the faster the growth in nonprime lending and pooling the greater the immediate fictional profits and (eventual) real losses
  • the greater the destruction of wealth, the greater the (fictional) profits, bonuses, and stock appreciation
  • many of the big banks are deeply insolvent due to severe credit losses
  • those big banks and Treasury don't know how insolvent they are because they didn't even have the loan files
  • a "stress test" can't remedy the banks' problem -- they do not have the loan files

The government is in debt to private banks that pretend to have money

US Government as a perpetual debtor for a constant money supply. When loans are repaid, the principal amount of the money created is zeroed out. As Brown explains: “In order to keep money in the system, some major player has to incur substantial debt that never gets paid back; and this role is played by our federal government.” And Brown further notes: “The U.S. federal debt has not been paid off since the days of Andrew Jackson. Only the interest gets paid, while the principal portion continues to grow.” Calls to eliminate the Federal debt logically would need to be accompanied by a change in how money is created, or, rather, who creates the money.

'Run on UK' sees foreign investors pull $1 trillion out of the City

A silent $1 trillion "Run on Britain" by foreign investors was revealed yesterday in the latest statistical releases from the Bank of England. The external liabilities of banks operating in the UK – that is monies held in the UK on behalf of foreign investors – fell by $1 trillion (£700bn) between the spring and the end of 2008, representing a huge loss of funds and of confidence in the City of London.

Russian Stock Market Collapses; Trading Halted

The Russian stock market collapsed today, causing the RTS and the Micex stock exchanges to suspend trading for one hour at 4:05 p.m. Moscow time. The RTS stock index, which is denominated in US dollar, plunged 9.4%, while the ruble-denominated Micex stock index fell 9.6%.

Puerto Rico government bankrupt

MORE than 30,000 government employees - about 14 per cent of the public work force - could lose their jobs and new taxes will be introduced as Puerto Rico attempts to shore up its ailing economy, the governor of the US island territory announced on Wednesday.

Japan exports drop 46% in January

BBC Business News Feb 25, 2009

Japan's exports plunged 45.7% in January compared with a year ago to hit the lowest figure in 10 years, official figures have shown.

Imports exceeded exports by 952.6bn yen ($9.9bn; £6.8bn). It is the largest gap since records began in 1980.

"Japan is particularly vulnerable to this downturn because trade is so central to the economy," World Trade Organization head Pascal Lamy told reporters on a visit to Tokyo.

G7 calls for 'urgent reforms' of world finance

Delegates came from the G7 grouping of Britain, Canada, France, Germany, Italy, Japan and the United States plus Russia.Module body

ROME (AFP) - The world's richest nations called Saturday for urgent reform of global finance to save the world from the economic devastation that is dragging more and more countries into recession.

Italy's Finance Minister called for a "new world economic order" as he wrapped up the crisis meeting of finance leaders from the Group of Seven leading economies over which he presided here.

In a joint declaration, the G7 called for "urgent reforms" of the international financial system.

"A new world economic order might seem rhetorical," he told reporters. "But it is a true goal we should be aiming towards... today right here in Rome we've embarked on a very significant journey, both technical and ethical."

The US Economy - Designed To Fail

But neither President Obama, nor his Democratic supporters or Republican antagonists, should feel badly about what is happening. This is because the system they have been given to work with was designed to fail. The U.S. was saddled long ago with a debt-based monetary system, whereby the only way money can be introduced into circulation is through bank lending. It was the system that was instituted in 1913 when Congress gave away its constitutional power over money creation to the private banking industry by passing the Federal Reserve Act.

Deluge of Financial Calamities Looming by Mid-March

In an interview on www.commodityonline.com released Monday, Marc Gugeri, the Fund Manager and Advisor to both Gold 2000 Ltd and the Julius Baer Gold Equity Fund, was asked about the price of gold. He stated, "The majority of investors purchase Paper-(Gold)-Futures at the COMEX. The sellers or counterparties of those Gold-Futures are just a few dominant players. Some of them have an in-official close link to the U.S. government. So far most of the investors didn't exercise the gold futures and have accepted cash instead of physical settlement. This is about to change. I believe that the COMEX will default and the entire paper gold market will 'crash' and gold could rise very quickly to 2,000 [or] 3,000 U.S. dollars. When this happens it will be too late to exercise or to try purchasing physical gold."

It normally is rare to find such doom-and-gloom commentary appearing in general financial circles. It is even more uncommon for commentators to reveal that some of the dominant players in the gold market have a close link to the U.S. government or that the price of gold could soon double or triple. Lately, mainstream financial analysts have been much more willing to talk about gold, to recommend owning gold for having better appreciation prospects than other assets, and to specifically recommend purchasing physical gold rather than shares in gold exchange traded funds or gold "certificates."

The money supply of all of the world's major currencies is now increasing by 10-30 percent annually. With the gold supply increasing by less than 2 percent annually, it is a virtual certainty that all currencies will fall in value against gold.

RED ALERT: FX Dislocation In Process - Updated (11:47 PM)

Someone, apparently someone in Asia, wants dollars. A LOT of dollars. There is a forced-liquidation event underway that is massive, it is against all asset classes and it is spreading.

It originated at approximately 7:15 CT this evening and originated out of Asia somewhere. All of the primary currency crosses got hit at once - Euro, Pound, Yen - all weakened dramatically against the dollar and it is still going on. The Asian stock markets got walloped at the same time in coordinated waves of forced selling.



Home Prices Plunge 18.5%; Another New Low

The Standard & Poor’s/Case-Shiller home price index reports that the price of single family homes dropped 18.5% in December versus the same time the previous year.

Since the 2005 real estate peak, home prices have fallen almost 27% nationally. All 20 metro areas are reporting negative monthly and annual rates of change in average home prices. Minneapolis, Las Vegas and Phoenix all reported monthly declines in excess of 4.5% in December.

The seven worst performing cities in terms of year-over-year declines continue to be from the Sunbelt, reporting negative returns in excess of 20%. Phoenix was down 34.0%, Las Vegas reported -33.0% and San Francisco fell 31.2%. Denver, Dallas, Cleveland and Boston faired the best in terms of annual declines down 4.0%, 4.3%, 6.1% and 7.0%, respectively.

Nationalization: Code Word for Banker Takeover

“Simply put: Nationalizing ailing banks means the government would tell bank execs to take a hike, and then oversee taxpayer dollars as they course through the banking sector’s veins,” writes Kelley. “When all is well, perhaps after selling assets and operations to new private investors, the government then steps back and lets a newly regulated bank sector float on its way.”

Does Mr. Kelley really think the government will step back after “nationalizing” the banks? He seems to think the government is “of the people, by the people, for the people,” as Lincoln put it, when it fact it is of the banks, by the banks, and for the banks.

Nationalization, US gov't sponsored, private bank profiteering

Plan to nationalise American banks
Geoff Elliott, Washington correspondent
February 23, 2009

"The plan proposed in Washington would effectively force the troubled US banks into receivership and put them under government control, recapitalise them with taxpayers' funds and then sell them off to private investors, wiping out the existing shareholders' equity. The President said of the US banking system last week: "I think what you can say is I will not allow our financial system to collapse. And we are going to do whatever is required to get credit flowing again, so companies and consumers can do their business and we can get this economy back on track.""

Orwellian Doublethink "Nationalize the banks." "Free Markets."

How is it that Mr. Greenspan, free-market lobbyist for Wall Street, recently announced that he favored nationalization of America’s banks – and indeed, mainly the biggest and most powerful? Has he "gone left"? Or are we dealing with the most recent exercise in Orwellian doublethink?

The answer is that the rhetoric of "free markets," "nationalization" and even "socialism" (as in "socializing the losses") has been turned into the language of deception to help the financial sector mobilize government power to support its own special privileges. Having undermined the economy at large, Wall Street’s public relations think tanks are now dismantling the language itself.

The popular media should not let them get away with it.

Webmaster's Commentary:

We won't.

The crash of 1904 was exploited to bring about the Federal Reserve. The crash of 1929 was used to end the use of gold coins and force the use of Federal Reserve notes on everyone.

And now the crash of 2008 is being used to force the "Nationalization" of the banks which means that taxpayer bailouts, previously an occasional looting of the public, will now be permanent and ongoing.

Former FDIC Chief: Don't Nationalize Banks, It Won't Work

The guy with the most experience of nationalizing banks in the U.S. says it won't work and we shouldn't do it.

Barclays gags Guardian over tax

Barclays Bank obtained a court order early today banning the Guardian from publishing documents which showed how the bank set up companies to avoid hundreds of millions of pounds in tax.

Court Enforces FOIA Request to Release TARP Details

Advocates of an open Government and transparent allocation of taxpayer funds celebrated the news late Friday afternoon (2-20-09) that the U.S. District court has moved to enforce a Freedom of Information Act (FOIA) request to release more details about exactly how TARP bailout funds have been and are being used.

Webmaster's Commentary:

That there is even resistance on the part of the government to tell us where the money went is damning.

Brzezinski warns of US riots Due to Economic Crisis

"There’s going to be growing conflict between the classes and if people are unemployed and really hurting, hell, there could be even riots!” said Brzezinski, President Jimmy Carter’s national security advisor, in a recent interview with NBC.

' Worst economic collapse ever'

In 2009 were going to see the worst economic collapse ever, the Greatest Depression, says Gerald Celente, U.S. trend forecaster. He believes its going to be very violent in the U.S., including there being a tax revolt.

Webmaster's Commentary:

About @#%ing time, too!

U.S. Has Entered “The Greatest Depression”

“The global financial system, built on endless supplies of cheap money, rampant speculation, fraud, greed, and delusion is terminally ill and will not be coaxed into remission by stimulus packages nor restored to health by government buyouts and bailouts,” writes Celente.

Global downturn: In graphics

Webmaster's Commentary:

I hereby declare that the Crash of '29 shall henceforth be called the not-as-great-as-we-thought depression.

Next Wave of Banking Crisis to come from Eastern Europe

European banks face an entirely new wave of losses in coming months not yet calculated in any government bank rescue aid to date. Unlike the losses of US banks which derive initially from their exposures to low-quality sub-prime real estate and other securitized lending, the problems of western European banks, most especially in Austria, Sweden and perhaps Switzerland arise from the massive volumes of loans they made during the 2002-2007 period of extreme low international interest rates to clients in eastern European countries.

BOE Unanimously Asks For Authority to Create Money

Federal obligations exceed world GDP

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

Meltdown 101: Highlights of economic stimulus plan

Now that there's a tentative agreement on the economic stimulus plan that President Barack Obama and other supporters hope will provide a considerable jolt to the economy, how long will it take to get infrastructure and other projects moving? And do economists think the plan is big enough to create millions of jobs?

Webmaster's Commentary:

Here is the real problem. In looking through the various projects for the stimulus plan, virtually none are for permanent jobs. They are all temporary employment.

Here in Hawaii a large number of the proposed stimulus projects are for repairing roads. Most of that money will go to already established road-building companies, who will hire on additional help for those projects.

But once those projects are done the workers will be let go again.

So we will be 6 months down the road, deeper in debt, people will be out of work again, the roads will look good (if they are not already starting to crumble based on previous experience), and there will STILL be no manufacturing of products to export to bring new money into the system.

So, this $700 billion is at best a patch. The real core problem with the economy continues to be ignored.

Stimulus: How it may affect your wallet

The bill provides a $400 credit per worker and a $800 credit per dual-earner couple. The full credit would be paid to people making $75,000 or less ($150,000 per dual-earner couple). A partial credit would be paid to those making above those amounts but no more than $100,000 ($200,000 for couples).

The credit would also be refundable, which means that even very low-income families who don't make enough to owe income tax would be able to claim it.

For most working individuals, the credit will be paid over time at roughly $15 per period, assuming 26 pay periods in a year.

Webmaster's Commentary:

So, the US Government has just dropped $30,000 worth of debt onto your head, and all you get back for that is the cost of a pizza every two weeks.

And they actually think they can buy you off with this lame ass deal????????

Democratic Senator Predicts None of His Colleagues 'Will Have the Chance' to Read Final Stimulus Bill Before Vote

Sen. Frank Lautenberg (D-N.J.) predicted on Thursday that none of his Senate colleagues would "have the chance" to read the entire final version of the $790-billion stimulus bill before the bill comes up for a final vote in Congress.

Webmaster's Commentary:

Shades of the USAPATRIOT act!

Le saut périlleux de 787 milliards de dollars de Barack Obama

Congress didn't even read it!

Dear congress, don't you ever ever ever pass a bill without even reading it. This is the largest spending increase in 30 years with over 1,000 pages of potential pork and who knows what else and you (the congress) didn't even read it?! Anyone who voted yes for a bill they didn't get to read should be fired. You don't just casually spend hundreds of Billions of dollars. The public was also not given details (even though we were promised) and the bill is supposedly going on the internet to read, too bad that is AFTER it has been passed. Welcome to the USSA. Comrade Obama is spending over 700 billion now and more with the coming TARP bill which puts us well over a TRILLION in new money to be spent, plus he didn't cut any spending and still has his wars.

TheToo Big To SAVE?

We hear more and more talk about institutions being too big to fail, and so, the taxpayer is expected to bear any cost to save large financial companies. We think that the more relevant question to ask is whether these institutions are too big to save?

With the passage of the most recent bailout bill, the taxpayer is now on the hook for a total of $9.5 trillion, almost enough to pay off every mortgage in the county. To put it in perspective, $9.5 trillion is more than the COMBINED GDP of Italy, Spain, Canada, Brazil, Russia, India, and 167 more countries! It is bigger than world GDP minus the top five countries.

President of Special Interests

The Bush/Obama bailout/stimulus plans are not going to work. Both are schemes hatched by a clique of financial insiders. The schemes will redistribute income and wealth from American taxpayers to the shyster banksters, who have destroyed American jobs, ruined the retirement plans of tens of millions of Americans, and worsened the situation of millions of people worldwide who naively trusted American financial institutions. The ongoing theft has simply been recast. Instead of using fraudulent financial instruments, the banksters are using government policy.


The Obama stimulus plan is attempting to inflate the same credit bubble that just burst and it will fail because our whole economic system must be overhauled ~ starting with our insolvent banking system which still hasn't dealt with $175 Trillion in Derivative debt

The Oligarchy's Bailout Ball

"Like spoiled, petulant children," is how Washington Post columnist Steven Pearlstein described them. "These guys won't be happy until the government agrees to relieve them of every last one of their lousy loans and investments at inflated prices, recapitalize every major bank and brokerage and insurance company on sweetheart terms and restore them to the glory days, so they can once again earn inflated profits and obscene pay packages by screwing over their customers and their shareholders."

How Can the U.S. Economy Recover Without Manufacturing Capacity?

"The United States' lack of a manufacturing capacity makes it even less likely that anything resembling a lasting recovery can emerge from President Obama's approach to the economic crisis. The infrastructure projects that are supposed to be central to the recovery scheme are only valued at $150 billion - which is not much of a jolt, especially when much of what will have to be bought is only available in other countries, made by foreign workers. Barack Obama has put a huge emphasis on building a green economy. However, according to the New York Times , most of the sources of solar panels and wind turbines are located in Europe and Asia. There can be no green economy without a mass transit makeover of the United States, but the U.S. hasn't made subway and light rail cars in many years.

Ron Paul "The Federal Reserve Is the Culprit!

"We can't reinflate the bubble"

Here's Congressman Ron Paul (R-Texas) from yesterday's monetary policy testimony before the House Committee on Financial Services.

Ron Paul gives opening statement during HFSC hearing

Ron Paul essentially disagreed with all four facets of the Federal Reserve's program for the struggling economy. In his two-minute statement, he started by branding the financial system a failure, and then laid out the reasons why he didn't think Bernanke's plan was going to save the economy. “It is fundamental for us to understand...if we think we can patch up a system that has failed, it's not going to work,” he told the Reserve's chairman. “We have a total misunderstanding of what credit is, versus capital. Capital can't come from the thin-air creation by a Federal Reserve system, capital has to come from savings.

Webmaster's Commentary:

These House Financial Services Committee hearings will go on as though nothing has happened, and as though this statement was never made.

The bottom line is this: the US government really has no way to fix this.

Some in power think that the "quick fix" should be another war, which is how the US got out of its economic depressions in the past. Unfortunately, this time, that is not going to work for a number of reasons.

Financial meltdown blamed on risk models

The failure of banks to count, manage and hedge their risks over the past decade is responsible both for the fantastic growth before 2007 and the crash that followed, according to the Bank of England’s director for financial stability.

Webmaster's Commentary:

Ah yes, the rush is on to find someone to blame.

But the initiating event in this financial catastrophe is obvious. The US Government gave huge tax breaks to corporations to make it easier to send manufacturing to other countries.

UP UNTIL THAT FATEFUL DECISION, Americans WERE paying their mortgages.

UP UNTIL THAT FATEFUL DECISION, Americans WERE paying their credit.

UP UNTIL THAT FATEFUL DECISION, Americans WERE buying retail products.

Jim Rogers: Abolish The IMF & World Bank

In an interview with Sir David Frost on Al Jazeera television, veteran investor Jim Rogers pinned the blame for the economic crisis squarely at the feet of the Federal Reserve, and said that the World Bank and the IMF should be abolished, not given more power, if a recovery is to be made.

Webmaster's Commentary:

He is correct. As I have noted many times the critical flaw with the Federal Reserve is that the moment it went into operation, more money was owed than was actually in existence.

Bank of America Says Bonus Disclosure Will Harm It

Bank of America Corp. will suffer “grave and irreparable harm” if Merrill Lynch & Co. employees paid $3.6 billion in bonuses just before the firm’s acquisition by the bank are publicly identified, its lawyers said.

HSBC to raise $17.7B, cut 6,100 U.S. jobs as profits fall

HSBC PLC, Europe's largest bank by market value, on Monday reported a 70 per cent drop in 2008 net profit and said it would raise US$17.7 billion in new capital through a share issue while cutting 6,100 jobs in the U.S.

HSBC said it would scale back its consumer lending in the U.S. after being hit hard by the subprime mortgage crisis there, shrinking its consumer loan business there - although its HSBC USA branch banking business will remain.

HSBC faces years of pain for US deal that went wrong

HSBC conceded yesterday that its purchase of Household International, the US sub-prime lender, had been a $15 billion blunder and would continue to drain the bank's resources for another two years.

Webmaster's Commentary:

HSBC had no way of knowing that the US tax laws would be changed in such a way that the high paying jobs that paid all those sub-prime mortgages would be lost to other countries.

Don't let the media scapegoat the sub-prime borrowers. The initiating event in the crash of 2009 was the US Government pandering to corporate interests, and of course, the derivatives bubble.

JPMorgan Derivatives Group Earned $5 Billion in Wall Street's Worst Year - It's not honest work, but it pays well.

Bloomberg Matthew Leising and Elizabeth Hester

March 3 (Bloomberg) -- JPMorgan Chase & Co. managed to generate $5 billion in profit during the worst year in Wall Street history by trading over-the-counter fixed-income derivatives, two people with knowledge of the results said.

The unit was among the most profitable at the New York-based company, said the people, who declined to be identified because they weren’t authorized to divulge the figures. JPMorgan spokeswoman Kristin Lemkau declined to comment.

A Monetary Stalingrad" is on its way to Europe"

Europe's loans to Eastern Europe's states within and outside the EU is going to cause the next world economic storm - and that is still while the US and UKs' banks are bankrupt and their debts are bankrupting their countries. Latvia's economy along with most UK and US banks is "clinically dead" and the Bank Austria and its Italian owner is facing "a monetary Stalingrad". Depending which figures one wants to accept Germany's gross domestic product shrank between 8 to 9 per cent in the last quarter! Ireland and several other EU countries are effectively bankrupt! The storm could hit within days or weeks. Major political upheaval and change will ensue.

UK "could experience a crash similar to Iceland"

Currently, the US debt to GDP ratio is approximately 100 per cent with the bulk of its external debt mostly in dollars.

The Netherlands currently has a ratio of approximately 328 per cent, while Ireland has built a debt to GDP ratio of 900 per cent.

However, the two countries that appear most susceptible to an economic collapse are the UK and Switzerland. The UK's debt to GDP ratio is currently 456 per cent while Switzerland's is 433 per cent.

Translating "Fed-Speak"

Yesterday the Fed released the minutes of its latest meeting. I love these types of reports because they show us what the Federal Reserve is seeing. Therefore, it gives us an idea for what they are thinking.

"The Federal Government Is Bankrupt ... If The Federal Government Were A Corporation … The President And Senior Treasury Officers Would Be In Federal Penitentiary."

"Truthfully," Williams pointed out, "there is no Social Security 'lock-box.' There are no funds held in reserve today for Social Security and Medicare obligations that are earned each year. It's only a matter of time until the public realizes that the government is truly bankrupt and no taxes are being held in reserve to pay in the future the Social Security and Medicare benefits taxpayers are earning today."

Webmaster's Commentary:

Now, where have I heard that before?

When Will We March Against Obama?

"Give Obama a chance." some of his less critical supporters say. "Do you think you're smarter than Obama?", some of the less polite ones ask. But those are not the real questions. The real question is how long it will be before the left wakes up and finds its own voice. Shut out of Obama's policymaking circles, there are few choices but to speak up. How long before more of us seek to unambiguously hold the new president and his record accountable? How long before protesters hit the street?

Webmaster's Commentary:

Within four months., and yes, as a matter of fact I do think I am smarter than Obama, at least in understanding that you don't fix an economy by taking money from the working class to give to the banks to loan back to the working class (at interest).

I am smart enough to know that you cannot prosper a nation doing each others' laundry for a fee, and that wealth does not grow by shaking money back and forth with great vigor in that giant open-air casino called Wall Street.

I am smart enough to know that the propaganda games that worked at the height of the cold war are failing miserably in the age of the internet.

I am smart enough to know that Obama is not doing anything consistent with the long term improvement of the economy. He is patching things, going with the politically expedient quick fix, and that 6 months from now when the bailout is spent and the potholes in the roads are filled in those workers will be out of work again, still unable to pay their mortgages, still unable to pay their credit cards, and like the rest of of, some $30,000 deeper in debt each to the Federal Reserve for all these bailouts.

I am smart enough to know that the fatal flaw in the debt-based Federal Reserve System is that the moment it went into operation more money is owed than is actually in existence. I am smart enough to know that when the Federal Reserve cannot find more and more people to pledge themselves to a loan in order to create new money that the pyramid will collapse as it collapsing now. I am smart enough to realize that each new bailout thus creates more interest debt, meaning that We The People owe the federal Reserve even more money that does not actually exist.

I am smart enough to understand that the fastest way to fix the economy is to cut taxes so that we can pay our mortgages, ending the mortgage crisis, pay our credit cards, which ends the credit crisis, and shop for those goodies the retailers are screaming we are not buying enough of. I am smart enough to realize that we can afford massive tax cuts if we just lose our addiction to running around Planet Earth killing brown people, or handing billions of dollars in weapons to Israel so that they can kill brown people.

I am smart enough to see all this.

Why isn't Obama?

Obama’s Stimulus Not Enough to Avert Biggest GDP Drop Since 1946

President Barack Obama’s stimulus plan will be insufficient to avert the biggest U.S. economic decline since 1946 as consumer spending posts its longest slide on record, according to a monthly Bloomberg News survey.

Ron Paul: Stimulus "Waste of Money"

A 'fraud' bigger than Madoff

In what could turn out to be the greatest fraud in US history, American authorities have started to investigate the alleged role of senior military officers in the misuse of $125bn (£88bn) in a US -directed effort to reconstruct Iraq after the fall of Saddam Hussein. The exact sum missing may never be clear, but a report by the US Special Inspector General for Iraq Reconstruction (SIGIR) suggests it may exceed $50bn, making it an even bigger theft than Bernard Madoff's notorious Ponzi scheme.

It’s Getting Ugly: Economist Says Hoard Gold & Scotch

Respected economist John Williams, editor of ShadowStats.com, a popular website that tracks real inflation figures, is advising that people hoard physical gold as well as food items in bulk so that they have some means with which to barter as the economic crisis turns ugly.

"Worst Is Yet to Come:" Americans' Standard of Living Permanently Changed

An Interview with Howard Davidowitz

But "the worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of:

* An $8 trillion negative wealth effect from declining home values.
* A $10 trillion negative wealth effect from weakened capital markets.
* A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies."

The end of rampant consumerism is ultimately a good thing, he says, but the unraveling of an economy built on debt-fueled spending will be painful for years to come.

Mortgage woes break records again in 4Q

A stunning 48 percent of the nation's homeowners who have a subprime, adjustable-rate mortgage are behind on their payments or in foreclosure, and that's not the worst of it, new data Thursday showed.

UPDATE 1-One in 8 US households late paying or in foreclosure

Reuters Thu Mar 5, 2009 Lynn Adler

A record 11.18 percent of loans on one-to-four unit residences were at least one payment past due or in the foreclosure process in 2008.

"In a recession like this, housing is never just about housing," said Jed Kolko [...]

The New Depression

The business and political elite are flying blind. This is the mother of all economic crises. It has barely started and remains completely out of control.

The Coming Crisis: White Collar Homelessness

Last month, unemployment rates surged to 7.6 percent. As the jobless population becomes older and more educated, many are ending up with no car, no job prospects, no health insurance, and - before long - no home. Will the dramatic increase of unemployment change the face of homelessness in America?

Webmaster's Commentary:

If the US Government took the same money they are pouring onto the bankers and gave it back to the people (whose money it is anyway) each and every one of us would get about $30,000.

We could pay our mortgages. That would end the mortgage crisis.

We could pay our credit cards. That would end the credit crisis.

We could start new businesses. That would create jobs. That would end the unemployment crisis.

Those new businesses could make products for export. That would end the trade imbalance.

Why on Earth are they not doing this? Or at least slashing taxes by 50% which would produce the same result?

Instead the government has taken $8 trillion from the people to give to the banks so the banks can loan it back to us at interest!

This is like seeing a house burning and deciding that the best way to put out the fire is to rip wood from all the other houses to try to smother the flames!!!!!

Are the wealthy in this nation so greedy that they would not surrender their hold on our throats just long enough for us to stand back up again?

Bank got help, still sending workers to resort

Wisconsin's second-largest bank is sending about 100 employees to a Puerto Rican resort next week, nearly three months after its parent company accepted more than half a billion dollars in taxpayer bailout money.

Bailout Bank Blows Millions Partying in L.A.

A bank that received $1.6 billion in bailout money just spent a fortune last week in L.A. hosting a series of lavish parties and concerts with famous singers ... and TMZ cameras caught it all.

Taking on the banking cabal

Engdahl: Obama should re-regulate the financial system and reinstate the Glass-Steigel Act Pt 1


It's Time to Break up the Big Banks

Timothy Geithner is putting the finishing touches on a plan that will dump $1 trillion of toxic assets onto the US taxpayer. The plan, which goes by the opaque moniker the "Public-Private Investment Fund" (PPIF), is designed to provide lavish incentives to hedge funds and private equity firms to purchase bad assets from failing banks. It is a sweetheart deal that provides government financing and guarantees for illiquid mortgage-backed junk for which there is currently no active market. What's got Geithner worried, is the fear that the public will see through this latest boondoggle and set off a political firestorm. If that happens, the markets will go into a swan-dive and Geithner's career at Treasury will come to an abrubt end.

16 US banks collapse in just two months

With the financial meltdown continuing unabated, US has already seen the collapse of 16 banks in the last two months -- which is more than one-fourth the total number of failures in the last nine years.

HSBC to Pullout of US Lending; Trading Suspended in Hong Kong

HSBC requested that trading of its shares be suspended in Hong Kong ahead of an “announcement of a corporate action.” The company is expected to announce the divestment of its US consumer lending business. Shares are expected to begin trading again on Tuesday.

China's imploding US ally

AIG, the world's sixth-largest company by assets and biggest insurer, according to the Forbes Global 2000 list for 2007, is one of the few US institutions to be founded in China, its roots dating from 1919 when Cornelius Vander Starr, a veteran of World War I, founded a small insurance company in Shanghai called American Asiatic Underwriters, later to become AIG.

Webmaster's Commentary:

This might explain one reason the US Government is spending so much of YOUR money propping up AIG, because the Chinese will view AIG's collapse as a signal they need to stop buying any more US debt.

Video - Engdahl: President Obama has left intact a brain dead banking system that is out of control

Speaking about President Obama's stimulus package and newly announced budget, William Engdahl says the fundamental causes of the economic crisis were missed. Until [President] Obama reinstates Glass-Steigel restraints on banking which were repealed by the Clinton administration in 1999 and begins to re-regulate the financial system, there will not be a flow of healthy credit into the healthy economy.


Obama Sells US To China Inc

With Hillary Clinton having signaled to the Chinese dictators that we will beg for their money and ignore unfair trade practices and even human rights violations, it will be left up to President Obama to seal the deal.

The truth is starting to seep out. Because of the need for more money to finance the latest bailout-the Obama economic stimulus plan-America is going further in debt to the Chinese Communists. Our country is officially being sold to the highest bidder. And we have striking confirmation of this fact from Secretary of State Hillary Clinton.

Bank slashes rates AGAIN to just 0.5% as it prepares to print ?75billion in new money

The Bank of England took the drastic step of 'printing more money' today in a bid to ease the crippling recession as it slashed rates to a new historic low.

In a fresh blow to savers, interest rates were cut for the sixth consecutive month from 1 per cent to 0.5 per cent, the lowest ever in its 314-year history.

But in an admission this is no longer enough to stave off economic disaster, the Bank confirmed it will now effectively print an extra ?75billion to combat the slump.


TOP secret contingency plans have been drawn up to counter the threat posed by a “summer of discontent” in Britain.

Brits start to fight back

In a day of speeches and discussions, academics, politicians, lawyers, writers, journalists and pop stars joined civil liberty campaigners to issue a call to arms for Britons to defend their democratic rights. More than 1,500 people attended the Convention on Modern Liberty in Bloomsbury, central London, which was linked by video to parallel events in Glasgow, Birmingham, Belfast, Bristol, Manchester, Cardiff and Cambridge

In her speech, human rights lawyer, Helena Kennedy said she felt that fear was being used as a weapon to break down civil liberties. “There is a general feeling that in creating a climate of fear people have been writing a blank cheque to government. People feel the fear of terrorism is being used to take away a lot of rights…”

Webmaster's Commentary:

Don't be afraid. Be angry. Be very angry. Be very pissed off.
Think Charles I.

Angela Merkel Rejects Bailout Plan For Eastern EU Nations

The worst business loss in UK history

Royal Bank of Scotland came a step closer to full-scale nationalisation today as the bank unveiled a record £24.1 billion loss and plans to raise up to £25.5 billion from the taxpayer.

U.S. Injecting Billions Into Foreign Central Banks

For more than a year, the U.S. Federal Reserve System has been increasingly acting as the world's central bank, injecting hundreds of billions of dollars into foreign government treasuries in an effort to increase liquidity in those countries.

The foreign central banks have used the U.S. currency to bail out financial institutions within their borders. The Fed program links its balance sheet directly to the fates of foreign central banks at a time when they're on the ropes.

Factory downturn 'accelerating'

Homeless families face strict new rules

Webmaster's Commentary:

The criminalization of homeless proceeds apace, and it appears that that, due to bad state governmental policies, the people who are most fragile in a battered state economy are made to pay the most harsh penalties.

Struggling owners use new tactic to stall foreclosure

Housing Price Decline Accelerates

The data in the December Case-Shiller 20-City index indicate that the rate of housing price decline is continuing to accelerate. The data show that house prices in the 20 cities fell at a rate of 2.0 percent in the month of December and were falling at a 21.3 percent annual rate in the last quarter of 2008.

Webmaster's Commentary:

Which means Obama's plan to recalculate mortgages based on the current value of the homes will not work, because 6 months from now most home owners will be back n negative equity situations, which means there will be no ability to borrow against the home to buy flat panel TV sets.

Obama is missing the mark. Everything the lawyers and accountants in charge of the government are doing is "restructuring", while ignoring the real issue. WE THE PEOPLE WANT OUR JOBS BACK. We are not asking for handouts, we are not asking for charity. What we want is what we had before.

Morgan Stanley predicts economic collapse worse than depression

Morgan Stanley’s UK equity strategist Graham Secker painted a bleak economic picture for the United Kingdom. In his morning forecast, Mr. Secker warned that UK profits could fall by 60% in the current downturn - a worse performance than the great depression of the 1930s.

You certainly can not accuse Mr. Secker of being early as UK stocks have already dropped 65% from their peak.

Arnie Schwarzenegger joins the ranks of the girlie men

So this is what things have come to here in America's most financially powerful state - a state whose $1.8 trillion economy is theoretically the eighth-largest economy in the world (just behind the United Kingdom, France, and Italy). If you thought that the collapse of Iceland made things tricky, confidence-wise, just wait until this sucker goes down. Which it is expected to do this week or next, as it technically becomes insolvent, unable to pay tax refunds, repair roads and bridges, keep schools open, or indeed provide a wage for anyone unfortunate enough to find themselves on its payroll.

Broader Unemployment/Underemployment (U-6) is 13.9% ....

Narrow unemployment is now at 7.6%, while the broader measure of underemployment is a whopping 13.9%. and still rising....U-6 is the true measure of employment ...the one trotted out by the media is crap.

Calif. Counties Threaten Tax Revolt Against State

Several counties are considering some form of tax revolt -- either filing lawsuits or delaying tax payments to the state -- because the governor has proposed withholding payments to them for as long as seven months in a move to preserve cash.

Webmaster's Commentary:

Sounds like an idea whose time has come.

Ship of Fools

The unemployment rate reported in the US media is a fabrication. Williams reports that

"during the Clinton Administration, ‘discouraged workers’ those who had given up looking for a job because there were no jobs to be had--were redefined so as to be counted only if they had been ‘discouraged’ for less than a year. This time qualification defined away the bulk of the discouraged workers. Adding them back into the total unemployed, actual unemployment, [according to the unemployment rate methodology used in 1980] rose to 18% in January, from 17.5% in December."

In other words, without all the manipulations of the data from a government that lies to us every time it opens its mouth, the US unemployment rate is already at depression levels.

Feds Seize Two More Banks

Federal regulators shut down a bank in Southern California and another in the Atlanta area today, bringing the number of U.S. failures this year to eight in almost as many weeks. This is the 33rd collapse since the depression began.

Federal Deposit Insurance Corp. announced that Ga.-based FirstBank Financial Services and Calif.-based Alliance Bank have been seized.

Yes we are raging - against a Government that spies on its citizens while ignoring the crimes of greedy bankers

Today one of Britain's most senior police officers with responsibility for public order raises the spectre of a 'summer of rage', with victims of the increasingly bitter recession taking to the streets in possibly violent protest.

US bank stocks fall to 17-year low

US banking shares hit their lowest level since 1992 on Thursday as fears mounted that the government would be forced to nationalise a key institution.

Further heavy selling of key names – Bank of America and Citigroup were once again among the worst performing, down 14 per cent to $3.93 and 13.8 per cent to $2.51, respectively – helped push the Dow Jones Industrial Average to its lowest level in six years.

Shortage of Critical Commodities Seen Already

Maybe you thought that less trade with China would mean fewer choices of lawn gnomes at Walmart this summer. And since you've recently sworn off, who cares anyway. Turns out China is also a leading provider of the raw materials used to make critical pharmaceutical drugs. We'll have fewer of those too and, in some cases, none at all.

Ohio: School Gets 700 Applications for One Janitorial Job

Evidence of the slumping economy is stacking up at an Ohio school which has nearly 700 applications for one open janitorial job.

Goodyear posts loss, plans 5,000 job cuts

Goodyear Tire & Rubber Co plans to cut 5,000 jobs worldwide in 2009, or 6.7 percent of its staff, after a prolonged downturn in vehicle demand led to a deeper-than-expected loss in the fourth quarter.

Tech Layoffs Jump 75% in 2008

Layoffs in the US technology sector rose 74.2% in 2008 as compared with the previous year. The industry was battered by an unrelenting wave of layoffs.

186,955 jobs in the telecommunications, computer, and electronics sectors were slashed in 2008

Iconic Canadian department store slashes 300 jobs

TORONTO (Reuters) - Sears Canada said on Friday that it cut about 300 workers across the country as the large retailer struggles with falling consumer confidence and braces for weaker sales.

The 300 jobs represent less than 1 percent of the company's total workforce of 35,000 people.

Earlier this month, privately held department store chain Hudson's Bay Co. cut 1,000 jobs as it looked to slash costs amid the economic downturn.

Great real estate drop of 2009

TORONTO (Reuters) - New home construction in Canada is expected to drop by 24 percent this year as part of the fallout from a slowing economy, but rebound in 2010, the Canada Mortgage and Housing Corp forecast on Thursday.

All 10 provinces are expected to show declines in new home construction this year, it said, led by the Western provinces, each with more than 30-percent drops expected for the year.

Last week, data showed sales of previously owned Canadian homes plunged 41 percent in January from a year earlier while prices dropped 11 percent.

Irish economy 'worst hit in eurozone'

For 15 years, Ireland's economy boomed, but today it is the country most severely hit by recession in the Eurozone. Every five minutes, a job is lost. When the property bubble burst, Irish banks had to pay the price. In Limerick, computer giant Dell is shedding 1900 jobs, closing its plant and moving to Poland.

Britain’s bankers plumb new depths

From The Times

Jon Moulton, the private equity chief, warned a City lunch this week that he feared serious civil unrest. There was, he said, a 25 per cent chance of one of the 15 member countries of the eurozone pulling out of the currency club. That, he said, would be a catastrophic shock leading to a “far greater financial crisis” than the current one.

The mind boggles at a financial crisis far worse than the current one. Is such a thing possible? Even with this one, it may already be too late to prevent social unrest, especially in Britain, which is tipped to be one of the worst-hit countries economically.

The spectacle of bankers continuing to award themselves bonuses while taking taxpayer support is feeding an extraordinary public rage and a fierce sense of injustice. With 40,000 people losing their jobs each month, it is a recipe for trouble, come the traditional rioting months of the summer.

Record numbers are declared bankrupt as recession bites

The number of people being made bankrupt hit an all-time high during the last three months of 2008, as the country's worst recession in three decades left thousands of individuals unable to pay their debts.

The number of companies being forced into administration also more than tripled during the quarter, as businesses struggled to refinance loans and raise necessary new capital.

The statistics reaffirmed the bleak state of Britain's economy, with economists and politicians predicting that the numbers were likely to rise even further over the coming year.

The increase in the number of people declaring themselves insolvent was particularly high in Scotland and Northern Ireland – jumping 75 and 39 per cent respectively in the final quarter of 2008, compared to the same period a year ago. In England and Wales, there was an 18.5 per cent jump in personal insolvencies. In total, 35,694 people declared themselves insolvent across the UK during the quarter.

Recession will be worst since 1930s: Greenspan

Former U.S. Federal Reserve Chairman Alan Greenspan said on Tuesday the current global recession will "surely be the longest and deepest" since the 1930s and more government rescue funds are needed to stabilize the U.S. financial system.

Geithner Plans to Bring in Private Investment for Toxic Assets

Aspects of the plan that have been settled include a new round of injections of taxpayer funds into banks, targeted at those identified by regulators as most in need of new capital, people briefed on the matter said.

“We have to reach a point where investors and consumers have greater confidence in our financial system,” Philadelphia Federal Reserve Bank President Charles Plosser said in an interview. “Without that, these institutions will not be able to attract new capital or be able to fully resume their important role in providing credit.”

Bank to issue grimmest warning yet on economy

Mervyn King will this week present the Bank of England's most pessimistic assessment yet of the outlook for Britain's economy, after a slew of official figures confirming that activity has "fallen off a cliff" since the autumn.

Geithner Says U.S. Financial System Remains 'Badly Damanged'

Treasury Secretary Timothy Geithner warned U.S. House Democrats on Saturday that the U.S. financial system remains "badly damaged," but that the Obama administration planned to act both quickly and aggressively to deal with the crisis, according to one lawmaker present.

Webmaster's Commentary:

This is the usual placation statement from a politician.

The fact is that the US financial system is fundamentally flawed in that the moment the Federal Reserve started issuing debt-based notes, more money is owed to the bank than is actually in existence. The system works only so long as new borrowers can be found to allow creation of new paper money which is used to pay the older interest debts. When people stop borrowing, as they did when the US Government handed tax credits top corporations to send US jobs to other countries, then the whole pyramid scheme starts to collapse, which is what is happening now.

What the bailouts amount to is the government borrowing ON Y0UR BEHALF (AND WITHOUT YOUR PERMISSION), to create the new money to cover the current outstanding debts by the banks.

But it is not a permanent solution. In fact, it will make the eventual crash far worse, because there is interest owed on the money 'Obushma' has borrowed for the bailouts, and the money to cover that interest doesn't exist!

About all the bailouts are doing is clearing up the books at the financial institutions by dumping that toxic debt on YOU!

UK top "bankers" had no formal Banking qualifications

four ex-chiefs of Royal Bank of Scotland (RBS) and HBOS admitted to having no formal banking qualifications between them in today's dramatic grilling by MPs.

Sir Fred denied he lacked experience, saying he had a degree in law and was a qualified chartered accountant, while also having worked as chief executive of the Clydesdale Bank and Yorkshire Bank before joining RBS.

Sir Tom McKillop, previously chairman of now part-nationalised RBS, said he was "certainly numerate", although he conceded he had not studied banking specifically.

Andy Hornby, who had headed HBOS until its rescue takeover by Lloyds TSB, said he had gained an MBA at Harvard Business School, while his ex-colleague Lord Stevenson said he had a history as an entrepreneurial businessman.

Corporate CEOs Caught Scheming on Tape

The Day After: Stocks Struggle to Overcome Geithner's Stumble, RIM's Warning

Webmaster's Commentary:

Stock's aren't supposed to "overcome."

Stocks are supposed to be shares in a company, paying dividends based on that company's earnings. The price of the stock is ideally supposed to be directly proportional to the earnings of the company, usually 13 to 16 years worth of the dividends payouts.

But when speculation takes over the market, as it has done over the last 12 years, the dividends cease being a factor, and the stock prices are driven by supply and demand, and more often the hopes and fears of the speculators who purchase stocks solely to sell them a short time down the road at a profit.

Wall street has been turned into a gigantic open-air casino, with one advantage over Las Vegas. When you lose, the taxpayers are forced to cover your losses, but you still get to pocket your winnings.

Final Economic Stimulus Bill Permits Americans' Personal Health Information to Be Sold for Research and Public Health Purposes WITHOUT Patients' Consent

The final economic stimulus bill permits Americans' personal health information to be exchanged and sold -- without patients' consent -- for research and public-health purposes, warns the Institute for Health Freedom (Washington, DC) and Citizens' Council on Health Care (Saint Paul, MN).

Obama's Opening Salvo

In an interview following his announcement, Geithner stated that government should replace the demand lost by the private sector. However, those with even a marginal grasp of economics know that demand is unlimited. It is the ability to spend that is not. While Americans still want all the things they wanted years ago, they have made the rational choice that they can no longer afford to buy at the same levels they once did. Using a printing press to replace this lost ‘demand’ will simply cause consumer prices to rise. Printed money does not create new purchasing power, but merely redistributes it from savers to borrowers. And since the plan will severely undermine the real productive capacity of our economy, there will not be much purchasing power left to redistribute!

With US infrastructure in tatters, stimulus plan offers paltry sum

The ASCE estimates that it would take an investment of $2.2 trillion over the next five years to update the nation's infrastructure. By the most generous calculations, the funds allocated in the final version of the Obama stimulus package would provide less than 5 percent of what is required.

Great Depression Quotes 1929 vs 2008: Have We Learned Anything?

A few select quotes during the depression years of 1929 to 1931.

Notice the "Expert" opinions which convey optimism, the bank bailouts, government assurances, the Hoover (Paulson) plan, and the deliberate attempt by the main stream media to manufacture consent for bailing out Wall St. Has anything changed?

Hedge Funds Pulling Most of Their Money Out of Market at the End of Each Day

Explains why the market performs like a schizophrenic day trader, as investors try to game the greater fool in unison, running the market up and down especially in market leading sectors such as financials. As long as a fund is not the last man in, the first 50% in any wave are set to make profits. While this has long been the modus operandi for ... notable algo trading outfits ..., the fact that it is spreading to most hedgies is shocking ....

Webmaster's Commentary:

Is all of Wall Street one solid scam-o-rama?????????

Arsonists Torch Berlin Porsches, BMWs on Economic Woe

At least 29 vehicles were destroyed in arson attacks this year, most of them luxury cars, according to police. The number is already about 30 percent of the total for 2008. The latest to go up in flames was a Porsche, on Feb. 14, two days after a Mercedes was set alight in a public car park.

While youths in Athens protest by throwing Molotov cocktails, in Paris by toppling barricades, and in Budapest by hurling eggs at politicians, protesters in Berlin rage at their economic plight by targeting the most expensive cars -- symbols of German wealth and power.

U.S. gov't takeover of mortgage giants good for Israeli banks

"The banks that today hold bonds of Freddie Mac and Fannies Mae are Israel Discount Bank, Bank Leumi and First International Bank. As far as they are concerned, the nationalization is a positive step because now the bonds are those of the U.S. government - and their price can only go up," Glazer said.

Webmaster's Commentary:

I am so happy for Israel's #$^ing banks.

On the other hand, the above sounds like famous last words.

This Is What A Collapse Looks Like

Some of you may not realize that Argentina, a country rich in natural resources with a generally well-educated population, has undergone an economic collapse since 2001.

The primary reasons for this collapse are corrupt politicians, and fraudulent banking institutions that colluded to put the country into massive DEBT!

It is true that Argentina is much smaller than the United States, so I am not trying to say this is a perfect parallel to our current situation. What I am saying is that the root cause of our troubles appear to be similar to Argentina’s.

How much of AIG’s bailout/handout is financing Israeli mortgages in Jerusalem & the West Bank?

On March 3, 2009, this exchange took place in the august and hallowed halls of what used to be known as the Congress of a Constitutional Republic:

With One Word, Bernanke Reveals Who Actually Runs the Country:

Senator Sanders: “Will you tell the American people to whom you lent $2.2 trillion of their dollars?”

Ben Bernanke: “No.”

One can only surmise Bernanke’s reasoning. He claims he doesn’t want to spook the banks and the markets or some such claptrap. I have another possible reason: Bernanke, being an Orthodox Jew, doesn’t want the American public to get any inkling of Israel’s share of the various bailouts.

283 US firms at high risk of default: Moody's

A total of 283 publicly traded US companies including many high-profile firms are at high risk of defaulting on their debt payments, Moody's Investors Service said Tuesday.

Moody's newly created "Bottom Rung" includes companies known to be in distress including automakers General Motors and Chrysler, but also corporate icons such as Eastman Kodak and American Airlines parent AMR Corp.

Riding out the tsunami in paradise

I think the best action for the United States and the rest of the world would be a massive act of peaceful civil disobedience. Stop paying mortgages. Stop paying credit card bills and student loans. It's over. The money you spend now will be money that you wish you had saved (or converted into land, gold, or something of value) Stop paying taxes. And don't give back your keys. Take your homes back and stop funding the government. Take care of yourselves. Do what you have to do to survive because this is your right as a human being. You are not responsible for Wall Street. You are not responsible for any of this. It's collapsing. Don't let them control the outcome. Don't give away your power. Don't give away what few resources you have left to those who created this.

Britain will be only nation still in recession next year

The British economy is heading for its worst year since the Great Depression, according to the latest predictions from the International Monetary Fund (IMF).

The fund shocked analysts during a briefing in which it was revealed that the UK will see its economy shrink by 3.8 per cent in 2009, and a further 0.2 per cent in 2010 – the only large economy predicted to still be in decline next year as well as this.

Some believe that the scale of the downturn signals the UK moving from recession to depression.

Russia wants to start debate on new reserve currency at G20

Russia is proposing that discussions into the possibility of creating a new world reserve currency are initiated at the upcoming G20 summit in London, a government source said on Wednesday.

"We fully agree that this is not the issue, which would enable us to get out of the crisis and cut costs. The main idea is to initiate discussions on this issue," the government source said.

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