Economy

(RussiaToday) – Keiser Report № 46: Social Fury builds up! – Video Link Here

(GoldSeek) – Video: Gerald Celente on Goldseek Radio – Video Link Here

(SOTT) – Are Goldman Sachs and the Megabanks Able to Wipe out an Entire Economy with a Keystroke?

How artificial intelligence and robotrading pose a growing threat to the global marketplace. Read More Here

(BostonHerald) – Frills, not jobs, filling posh IRS digs

The $92 million renovations at the IRS compound in Andover will include a reflecting pool, an art gallery, indoor gardens, a 7,000-square-foot cafeteria and an amphitheater, but it remains unclear what new permanent jobs, if any, will come to the center. Read More Here

(MurrayDobbin) – The Canadian ‘good banks’ myth

The sorry spectacle of Conservative cabinet ministers flying around the world defending banks from a tax to cover their next, inevitable, meltdown is bad enough. What is perhaps worse is that it is being largely justified by the perpetuation of the myth that Canada did not have to bail out its banks.

Wrong. Read More Here

(VancouverSun) – G8, G20 summit security a waste of money, say Montreal anarchists – Read More Here

(AutomaticEarth) – Lent, spent and guaranteed

Ilargi: No, I’m by no means the only one who thinks this thing will not end well.

Let’s start with Gerald Celente of Trend Forecasters: Read More Here

REPOST – (SeekingAlpha) – Video: Hendry – ‘I Would Recommend You Panic’

In this widely watched BBC video, Hugh Hendry of hedge fund Eclectica Management recommends the world panic over the ongoing European debt crisis and then the group debates whether perpetual bailouts and a much longer slowdown are preferable to a real purging of the system and a much shorter recession that would also see major reforms. Video Link Here

(TimesOnline) – Greece urged to give up euro

THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy. Read More Here

(Express) – WORK UNTIL LUNCH JUST TO PAY TAX

Analysis relating the tax burden to the working day suggests that the average 9-5 worker takes until 1.21pm to cover their tax bill and then spends three hours 39 minutes working for themselves. Read More Here

(WSWS) – Austerity measures throughout Europe

Two weeks ago, European heads of state and the International Monetary Fund reached agreement on a €750 billion rescue package for the euro. Since then, not a day has gone by without the announcement of a new round of draconian austerity measures. Working people are now being ordered to pay the price for plugging the massive holes in public finances that are the result of various rescue measures for the banks and the euro. Read More Here

(ComingDepression) – Sell now warns LA real estate experts amid BP oil spill

“Carolyn Angelette said around 100 clients have canceled summer rentals in Grand Isle, LA. Other clients have postponed plans to buy a home until they see the full extent of oil damage. At this rate, she warns, her Century 21 office will go out of business.”
It is obvious BP will be in litigation for decades with multiple plaintiffs once it is discovered just how much damage this unprecedented disaster has unleashed. It would not surprise me if this catastrophe bankrupts the company. Read More Here

(LATimes) – Lessons of hard times in Vallejo

Since filing for Chapter 9 bankruptcy protection two years ago, this scrappy Bay Area bedroom community has come to symbolize the fiscal troubles — now faced by many cities — that helped push it to the brink: unrestrained spending, out-of-control pension costs and a burst housing bubble. Read More Here

(RussiaToday) – Video: Wall Street Operative Geithner Rebuffed in Berlin on Mission to Make World Safe for Derivatives

On the most important stop of last week’s desperate mission to make the world safe for derivatives, US Treasury Secretary Geithner has been dealt a decisive rebuff. Geithner’s obvious attempt to sabotage the recent prohibition enacted by the German government against naked credit default swaps (among the most toxic of derivatives) was rejected in Berlin on Thursday by German Finance Minister Wolfgang Schäuble.

At their joint press conference, Geithner and Schäuble could hardly hide the atmosphere of tension and hostility, even though both were determined to mask the clash for domestic political reasons. A Handelsblatt blog pointed to the language of mutual dislike, and this newspaper headlined that the transatlantic conflict was escalating. The Washington Post published a photograph on Friday, May 28, 2010 showing the German minister scowling at the feckless featherweight Geithner. Geithner assured the journalists that there was a “broad agreement on regulatory reform,” but in reality there was no such common ground.

Schäuble has now emerged as the strongman in the German cabinet, due precisely to his willingness to take the point in the fight against derivatives. “Ban Bolsters Schäuble’s Sway,” headlined the Wall Street Journal. German officials are reported to be increasingly dismissive of the carping criticism coming from other countries which have failed to act against the world derivatives plague. The Germans know exactly what they are doing, Schäuble stressed: “We have done our national homework,” he added.

It is abundantly clear that Germany is determined to act unilaterally against speculation, especially in the form of derivatives. This means maintaining the current ban on naked credit default swaps, and supplementing this with a ban on naked short sales of German stocks, euro-denominated government bonds, and of the euro itself.

Geithner, as always, is operating behind a mask of duplicity. During the press conference, he did not directly address the German ban on naked credit default swaps which has caused such consternation in the City of London, Wall Street, the US Treasury, and the Federal Reserve, where derivatives are regarded as sacrosanct. Geithner also failed to address the question of a Tobin tax or securities sales tax on speculative financial turnover, which the German government is attempting to push through the ponderous elephantine Brussels bureaucracy of the European Union. Geithner also did not talk about the regulations largely targeting the Anglo-American hedge fund wolfpack which are also being developed in the Byzantine corridors of the eurogarchy.

These are matters of extremely serious strategic conflict. As the Washington Post noted on May 28, “… differences have emerged on the host of issues between the United States and Europe… some European officials – including Schäuble – want to tax all financial transactions for a fund that might be dedicated to crisis resolution or that might go into each government’s general account.” Given the increasing pressure on national budgets, it is of course imperative that the revenue generated by a Tobin tax be kept in-country to prevent the savage dismantling of the social safety net which is increasingly demanded by the financiers and their agents and dupes. Under no circumstances should these funds be kept in a fund which will inevitably be used for further bailouts of bankrupt zombie banks. As the Washington Post further commented: “Europe wants to more strictly clamp down on what it views as speculation, while … US officials speak more frequently about the risk of stifling innovation if regulations become too rigid.” Modern societies need innovation in the area of scientific discoveries that can lead to new technologies, and do not require any more variations of the available brands of derivatives cyanide, arsenic, and strychnine. The world has had enough of toxic derivatives to last us until the end of the century and beyond.

Geithner’s true intentions can be read from his systematic sabotage and gutting of the financial reform bill recently passed by the U.S. Senate. The most important feature of this bill was the ban on derivatives speculation by commercial banks proposed by Senator Blanche Lincoln of Arkansas. This would have partially restored the blanket ban on most types of derivatives which was in force under the New Deal from 1936 through 1982 thank to the Commodities Exchange Act signed by President Franklin D. Roosevelt. Geithner has attacked this provision, and is teaming up with Obama handler Rahm Emanuel to remove it during the upcoming House-Senate reconciliation process.

Geithner was also an active participant in the efforts to torpedo the McCain-Cantwell amendment, which would have restored the New Deal era Glass-Steagall law, which rigorously prevented commercial banks from engaging in stock jobbing and related forms of investment banking, including derivatives.

Geithner has also talked about stress tests for European banks. It should be recalled that the stress tests for US banks carried on last year under Geithner’s supervision were worse than useless, since they systematically excluded from consideration the main cause for bank insolvency in the current era – off-balance-sheet toxic derivatives. This blatant mockery should not be repeated in Europe.

As for the hedge fund hyenas, they are adamant about their intention to bring the crisis currently impacting the southern tier of the euro back home to the United States. In his New York Times article “Easy Money, Hard Truths,” David Einhorn, a leading hedge fund operator involved in the infamous February 8, 2010 Manhattan planning session for the current assault on Europe, is categorical in his forecast that the European crisis will happen here as well. To spare the American people endless and useless misery, it is imperative that we mobilize every legal and regulatory tool in the New Deal armory to put the hedge fund predators out of business while banning or taxing derivatives. The goal must be to prevent a needless national bankruptcy of this country and preserve the present constitutional system of representative government from the chaos and anarchy the speculators are eager to visit upon us.

Source: Rense

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