Economy

REPOST – (Examiner) – CAFR: US agencies have billions, trillions in investments while crying budget deficits

Gerald Klatt and Walter Burien are unrecognized heroes. These individuals are national leaders who have communicated how government agencies conceal American taxpayers’ money in surplus accounts that collectively total trillions of our dollars. The data is found in government agencies’ Comprehensive Annual Financial Reports (CAFRs).

What CAFRs reveal is a communist-style policy whereby the US taxpayers surrender enormous assets to the state, who then “invest” these collective trillions that swell in these accounts. Concurrently, taxpayers are informed of budget deficits to either squeeze more taxes from them and/or cut public services. To add insult to injury, the state lies in omission by never reminding Americans of their hard-earned and withheld trillions as they eliminate jobs, reduce education, and attack the quality of our lives. Read More Here

(BusinessInsider) – Hugh Hendry’s Slams Economist Jeffrey Sachs: I Would Recommend You Stop Going Skiing And Panic

The European banking system is in crisis, says Hendry.
“I would recommend you panic.”
The hedge fund manager of Eclectica Management went on BBC Newsnight last night to play pessimist against Jeffrey Sachs, an economist from Columbia University. Read More Here

(Consumerist) – Your Household’s Share Of The September 2008 Economic Collapse: $104,350

A recent report from the Pew Charitable Trusts tallies up each US household’s share in the economic collapse. Your household’s share? $104,350. That includes lost income, government bailouts, and both reduced home values and reduced stock values. Read More Here

(MyBudget360) – Most over valued region in San Francisco gets a taste of the commercial real estate bust. $3 trillion in loans starting to implode at a faster rate. Why commercial real estate will plunge FDIC insured banks into closure. Bought for $415,000 per apartment unit – Read More Here

(RollCall) – House Democrats Lack Votes for Extender Package

The tax and unemployment benefits extension bill appeared on the brink of collapse Thursday afternoon, with House Democratic leaders short of the votes they need to pass it and fiscally conservative Blue Dog Democrats defecting. Read More Here

(CNBC) – Video: Gold at $36,000 Not as Ridiculous as It Sounds?

Gold has reached record highs in recent weeks, but it will continue to rise, Ben Davies, CEO of Hinde Capital told CNBC Wednesday. View More Here

(OpenCongress) – Stimulus II — Big Vote Today, Here’s What’s in It

The Democrats have prepared a second, smaller stimulus bill of about $127 billion in new short-term spending called the American Jobs and Closing Tax Loopholes Act of 2010, and they are planning to hold a vote on it in the House on today. Late on Wednesday night, the bill was revised. Here’s what’s in the final bill. Read More Here

(InterForecaster) – Bob Chapman: They Want A Collapse, Its Deliberate

Europe is rescuing its economy in the same way that the Federal Reserve has attempted to same America’s financial system and economy. They have used an unprecedented aid and stimulus package to offset massive fiscal deficits. In the US a deflationary depression was avoided at least temporarily and that is what is now being attempted in Europe with the guidance of the Federal Reserve. Read More Here

(QBit) – Toll privatization scheme in Michigan HB 4961 amounts to a tax paid directly to private corporations, without representation

Michigan House Bill 4961 [pdf] boils down to Taxation without Representation – turning the State’s right to levy taxes over to private international corporations, essentially ceding sovereignty over critial infrastructure. The corporations will be able to levy highway tolls without oversight or regulation on US citizens, should this bill pass. Read More Here

(LondonTelegraph) – Paper: Financial Crisis Worse Than 2008

This financial crisis is worse than the sub-prime crash of 2008 because the sums are so much bigger and it is governments that are in dire straits. Edmund Conway explains the dangers. Read More Here

(PaulWatson) – Ron Paul: Inside Sources Told Me Fed Is Panicking At Mass Awakening

Appearing on The Alex Jones Show yesterday, Congressman Ron Paul revealed that through his inside sources he had learned that the people who control the Federal Reserve are panicking about the fact that Americans are waking up to the fact that the U.S. is controlled by the central bank. Read More Here

(KurtNimmo) – Fiat Money Supply Contracting at Great Depression Level

The bankster operative who helped destroy Glass-Steagall is back.

Larry Summers, Obama’s top economic adviser, has told Congress to “grit its teeth” and approve a fresh fiscal boost of $200 billion to keep growth on track, reports the Daily Telegraph. “We are nearly 8m jobs short of normal employment. For millions of Americans the economic emergency grinds on,” he said. Read More Here

(May 26) – Video: Walter Burien Explains The Comprehensive Annual Financial Report on Alex Jones Tv – Part 1 HerePart 2Part 3Part 4Part 5Part 6

(EconomicPolicyJournal) – The Hire, Fire, Hire Census Game, Or Why the Unemployment Numbers Are Improving

You know the old saying: “Everyone loves a charade.” Well, it seems that the Census Bureau may be playing games.
Last week, one of the millions of workers hired by Census 2010 to parade around the country counting Americans blew the whistle on some statistical tricks. Read More Here

(EconomicCollapseBlog) – Are We About To Witness The Greatest Banking Consolidation In U.S. History?

As the number of bank failures in the United States continues to accelerate, many analysts are warning that we could soon see unprecedented changes in the U.S. banking industry. In fact, there are some economists that are warning that we could be about to witness the greatest banking consolidation in U.S. history. Read More Here

(WashingtonsBlog) – Top Bond Vigilante: Fiscal Austerity May Not Work

Gross says in his latest investment outlook that austerity may not work to lower sovereign debt: Read More Here

(TheMessThatGreenspanMade) – In a Word, the Problem is “Debt”

Recent developments in the euro zone that increasingly look like they will lead to the restructuring (if not the collapse) of one of the world’s major currencies and the potential for this “contagion” to move first north to the U.K. and then west to the U.S. have many people wondering what’s gone wrong with the global monetary system.

How could advanced Western economies have run into such trouble? Read More Here

(RussiaToday) – Video: Max Keiser – Big Banks Allocate Losing Trades to Clients, Keep Winning Trades for Themselves

Max Keiser – journalist, former Wall Street broker and options trader, and inventor of the software which is now being used for high frequency trading – claims that the big banks retroactively allocate losing trades to their clients, and keep the winning trades for their own proprietary trading desks: Continue reading

Something Is Rotten in the State of Iceland

(WikiLeaks) – Over the last few years, WikiLeaks has been the subject of hostile acts by security organizations. In the developing world, these range from the appalling assassination of two related human rights lawyers in Nairobi last March (an armed attack on my compound there in 2007 is still unattributed) to an unsuccessful mass attack by Chinese computers on our servers in Stockholm, after we published photos of murders in Tibet. In the West this has ranged from the overt, the head of Germany’s foreign intelligence service, the BND, threatening to prosecute us unless we removed a report on CIA activity in Kosovo, to the covert, to an ambush by a “James Bond” character in a Luxembourg car park, an event that ended with a mere “we think it would be in your interest to…”. Continue reading

Los Angeles Heading for Bankruptcy, Mayor Tries to Prevent Bond Market Panic

(MarketOracle) – When a politician says something is “not an option” that generally means it is (or soon will be). Sometimes it means it is all but certain. With that in mind, please consider Mayor Villaraigosa says no bankruptcy for the city. – Continue reading

MSM: Fed Discusses Limited Bond Sales to Withdraw Stimulus

(Bloomberg) – Federal Reserve officials are considering a proposal to schedule limited sales of bonds from the central bank’s $2.2 trillion balance sheet as part of a range of tools for withdrawing record monetary stimulus. Continue reading

Nelson offers war bonds bill

(OmahaWorldHerald) – In an attempt to help avoid sharp tax increases or increase foreign borrowing, Sen. Ben Nelson on Tuesday introduced the U.S. War Bonds Act of 2009. Continue reading

MSM: Marc Faber, Dollar Will Eventually Go to Value of Zero

(Bloomberg) – Marc Faber, publisher of the Gloom, Boom & Doom Report, appeared on Bloomberg today, expanding his view on the inflation/deflation, strong and weak US dollar debate. According to him, the losers will be cash and treasury bond and the winners will be foreign currency and commodities. Equities have some power to hedge inflation. Continue reading

MSM: Back-Door Taxes Hit U.S. With Financing in the Dark

Oct. 26 (Bloomberg) — Salvatore Calvanese, the treasurer of Springfield, Massachusetts, for four years, had a ready defense for why he risked $14 million of taxpayer money on collateralized-debt obligations laden with subprime mortgages in 2007. Continue reading

Twenty-Two Reasons Why this Recession is Different and Why it Will Endure

I find it surprising that I’m now getting inquiries from readers, asking if “we’ve reached bottom” in the current economic recession, and asking if the time has come to start buying stocks or residential real estate. It seems that the talking heads of mainstream media are using some sort of voodoo. How can anyone think that we’ve hit bottom, and an economic recovery is in progress? To dispel the myths from the CNBC Cheering Section, please consider the following. (And note that I’ve provided references for each assertion, just so you know that I’m not talking out of my camouflage hat.): Continue reading

MSM: Dollar Reaches Breaking Point as Banks Shift Reserves

(Bloomberg) – Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades. Continue reading

Systemic Failure Approaches

In fact, my forecast is for systemic failure. Its primary elements will be a failed US banking system (as in seizure) and a USTreasury Bond default (as in coerced restructure). Again, martial law and declaration of economic emergency will be the final solution. The prison camps will become debtor prisons and warehouses for illegals, maybe a processing plant for those who refuse virus vaccination. Continue reading

The Misery Index: A Reality Check

(C4L) – In the wake of the panic of 2008, finger pointing has become fashionable. According to some left-wing elements in the chattering classes, the free-market, entrepreneurial capitalist system caused the economic crisis. Continue reading

The Spend-And-Borrow Economy – Nouriel Roubini

In the last few months the world economy has been saved from a near-depression. That feat has been achieved by a range of extraordinary government stimulus measures: In the U.S. and in China, and to a lesser extent in Europe, Japan and other countries, governments have pumped liquidity, slashed policy rates, cut taxes, primed demand and ring-fenced and back-stopped the financial system. All of this has worked, but at a cost. Governments have been spending and borrowing like never before. The question now is: how do they stop? Continue reading

Elections Are A Scam

As in every election we’re now being bombarded with propaganda about how “your vote makes a difference” and associated nonsense. According to the official version ordinary citizens control the state by voting for candidates in elections. The President and other politicians are supposedly servants of “the people” and the government an instrument of the general populace. This version is a myth. Continue reading

MSM: Fiscal ruin of the Western world beckons

(Telegraph) – For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state. Continue reading

Many Predict US Financial Collapse in September

Let us contemplate the day in the near future when the consequences of financial chicanery finally outpace the ability of the governments, central banks and big media to cover up and obfuscate the truth. Many respected voices have now gone on record that September 30 or thereabouts will be that day. Continue reading

The U.S. and the U.K. Will Both Default on Their Debt by the End of Summer

As anticipated by LEAP/E2020 as early as October 2008, on the eve of summer 2009, the question of the US and UK capacity to finance their unbridled public deficits has become the central question of international debates, thus paving the way for these two countries to default on their debt by the end of this summer. Continue reading

Russia Makes the First Call for the Monetization of Gold

Russia is proposing the inclusion of the ruble, yuan and gold as a part of a revised basket of currencies to form the valuation of the IMF’s special drawing rights seen as the coming new alternative global reserve currency, reported AP. Continue reading

Illiteracy in High Places – Forgetting What We Learned

(Paul Craig Roberts) – If a person lives long enough, he can watch everyone forget everything they learned. Everyone includes Federal Reserve Chairmen, economists, Bank of America “strategists,” and even Bloomberg.com. Continue reading

Bond Market Blowout – Michael Whitney

Last week’s ructions in the bond market, leave little doubt that the financial crisis has entered a new and more lethal phase. Of particular concern is the spike in long-term Treasuries which are used to set interest rates on mortgages and other loans. Continue reading

The Big Collapse Could Be Very Near

The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday. Continue reading

UN report issues dire forecast for world economy

The United Nations’ Department of Economic and Social Affairs (DESA) updated its “World Economic Situation and Prospects” report last Thursday, forecasting world growth this year of negative 2.6 percent. World trade is expected to decline by 11.1 percent—the sharpest annual contraction since the 1930s. Continue reading

MSM: Rising U.S. bond yields may spark Credit Crisis II

(Reuters) – The global financial crisis may morph into a second, equally virulent phase where borrowing costs rise again, hobbling an embryonic economic recovery, debilitating cash-strapped banks, and punishing investors all over again. Continue reading

Governments Will Need to Issue $15-33 Trillion in Bonds

Niels C. Jensen, a partner with Absolute Return Partners LLP, has written an interesting essay on the need of governments around the world to issue bonds to pay for their respective bailouts.

As summarized by Nouriel Roubini, Jensen shows: Continue reading

MSM: China fears bond crisis as it slams quantitative easing

China has given its clearest warning to date that emergency monetary stimulus by Western governments risks setting off worldwide inflation and undermining global bond markets. Continue reading

Gold Disconnects from USDollar

The gold price has finally disconnected from its nemesis, the USDollar. This news should be read as the coming of spring after months of wintry torment, or as the sighting of land after 30 days adrift at sea in a derelict vessel. From 2002 to very early 2008, the gold price had risen from the massive speculative fervor that swept the United States and Europe, whose economies had been supplied largely by Asian factories. The mines from Latin America to South Africa to Australia greatly aided the process. The very paradoxical event of the USDollar rising this past autumn amidst truly horrendous news, one disaster after another, one major bank failure after another, one nationalization of a large financial institution after another, makes the disconnect all the sweeter for gold investors. That set the stage for a powerful gold price move. Imagine a notable rise in the buck, based upon broad negative news in August and October! Continue reading