This Weeks Economic News(links) – River @ #deprogram

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Evening all,

I’m sure you heard that Freddie and Fannie have been bailed out with
our funds and they didn’t even wipe out the shareholders. Scum!! That
article is everywhere. Personally I prefer Bob Chapman’s suggestions
over at The International Forecaster:

We say, let’s have the fraudsters bail out the non-professional
investors, as was done with the auction rate municipal bonds,
along with some of the smaller regional banks who got sucked
into this Ponzi scheme, AND THE REST CAN FREAKING BURN!!! LET
ALL THE CRIMINAL SCUM BURRRRRRRRN!!! Take Mr. Hanky Panky
Paulson’s bailout bazooka, shove it down his throat, and pull
the trigger!!!
http://theinternationalforecaster.com/International_Forecaster_Weekly/Purge_The_System_of_its_Failures

That article definitely has a more sinister tone than most of his but
rightfully so considering our current mess.

The worst possible solution to this mess is for the US to start buying
everything to prop up the markets as Mr. PIMCO suggests here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aaVfH47UrqgA

As we can all see this is a global pandemic and the US is simply
patient zero. Although a few countries are spared, they are not many.
http://www.guardian.co.uk/money/2008/sep/02/houseprices.property?gusrc=rss&feed=networkfront

As a quick aside when talking about International businesses there may
be some new fronts opening in the intelligence wars of old. And cold.
http://www.marketoracle.co.uk/Article6100.html

Even the monolithic Bank of China seems to be having problems:

And these central banks seem to want to expand their gold reserves
http://www.marketoracle.co.uk/Article6136.html

Which is going to be a problem with the complete and total disconnect
between the paper metals trading on the COMEX and the physical metals.

Gold market manipulation conspiracy theorists should be having a
field day. The past few weeks have seen solid evidence that
physical gold demand from individuals is soaring. We have seen
the U.S. Mint having to suspend one ounce Gold Eagle coin sales
because of what it terms ‘unprecedented demand’, Indian gold
sales have picked up enormously in the past few weeks leading to
purchasers having to wait several days for deliveries as the
traditional sellers are short of gold, while yesterday we hear
that Abu Dhabi, a major trading centre for precious metals, has
seen gold sales rise by 300 percent in volume and 250 percent in
value in August compared with a year ago.
http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=61431&sn=Detail

I’m not sure when the manipulators are going to loose control or how
they are going to react (I wouldn’t put closing the COMEX above them)
but sooner or later the price of Ag/Au is going to turn parabolic! Avoid
the paper futures and buy physical! This is the last time (I think)
that they will put it on sale despite calls for central banks to sell.
The smart central banks are buying.

And the reason that the dollar is rising is that China has maneuvered
their commercial banks into buying dollars after raising the fraction in
reserve requirements 5 times this year.
http://seekingalpha.com/article/92883-people-s-bank-of-china-chinese-dollar-bulls

I’ve heard rumors that this was a prerequisite for a China-Iraq oil deal
but can not find confirmation of that.

And if you think that sovereign wealth funds will come riding to the
rescue again, let me point you to a good article that will dispel that
myth (lot of additional ‘how banks work’ talk in there too):

So, how did the investors who gave the various banks capital do
on their investment. Shilling shows us 9 deals done by sovereign
wealth funds. The best return was down a mere 26.6%. The worst
was Singapore in UBS for down 56% in less than nine months.
http://www.marketoracle.co.uk/Article6141.html

Here is a final collection of articles calling for the credit crunch to
last 18 more months, to get much worse, for new credit crunches (HELOC),
for things to go bad in general. This is what Faux Biddness, CNBC, etc
are not telling the people of this country. No wonder they think it is
going to come out all peaches and cream on the other end.

http://www.marketoracle.co.uk/Article6099.html
http://emac.blogs.foxbusiness.com/2008/09/04/the-banks-next-hot-zone-home-equity-delinquencies/

Hornby – whose bank owns the Halifax and Bank of Scotland – said
British banks would continue to suffer major problems in
offering loans until they could once again raise significant
sums on wholesale financial markets.

The HBOS chief said that US money-market investors would not
resume channelling of money to UK banks for mortgage-lending
until US house prices started to recover — a process he said was
set to last well into 2010.
http://business.timesonline.co.uk/tol/business/economics/article4690332.ece

And on another note, I feel so confident in Colorado’s election process
now, at least we know they really were in bed together:
http://www.bradblog.com/?p=6360
http://www.rockymountainnews.com/news/2008/sep/06/colorado-elections-director-resigns-amid-inquiry/?partner=RSS

and monitoring the situation may not be that good for your freedom:
http://www.kgun9.com/global/video/flash/popupplayer.asp?vt1=v&clipFormat=flv&clipId1=2885099&at1=News&h1=Election%20Official%20Arrested%20At%20Voting%20Center&rnd=84007090
and
http://www.bradblog.com/?p=6363

Lord help us, cause our politicians sure as hell aren’t!!
—
RiverRat a/k/a Tres Melton,
Believer in Freedom, Crusader for Liberty, Supporter of Dr. Ron Paul
System Administer of https://GreenDragonTavern.com
Channel Mod @ #deprogram efnet.org =)

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