Economy

(BusinessInsider) – Greek Communists Say IMF-Imposed Austerity Means “Dachau Conditions For Life”

Greek communists are cranking up the rhetoric against IMF-imposed austerity measures, now calling for war against the Athens government. Read More Here

(TheStreet) – Gold Prices Top Record, Break $1,260 – Read More Here

(Bloomberg) – Greenspan Says U.S. May Soon Reach Borrowing Limit

Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing. Read More Here

(Fool) – The Coming Financial Meltdown

The problem is getting worse. Notional amounts of derivatives held by federally insured banks have risen to more than $200 trillion. Read More Here

(MyNews4) – Video: Nevada’s unemployment rate to reach No. 1 in U.S. – View Video Here

(PaulWatson) – Obama Plans To Sneak Through Carbon Tax By Stealth

Job killing, economy wrecking, middle class destroying consumption tax to be added in lame duck session after November elections Read More Here

(WebOfDebt) – Hyperinflation or Deflation? Dramatic Fiscal Austerity Measures: “Deficit Terrorists” Strike in the UK — The USA is Next – Ellen Brown

Last week, England’s new government said it would abandon the previous government’s stimulus program and introduce the austerity measures required to pay down its estimated $1 trillion in debts. That means cutting public spending, laying off workers, reducing consumption, and increasing unemployment and bankruptcies. It also means shrinking the money supply, since virtually all “money” today originates as loans or debt. Reducing the outstanding debt will reduce the amount of money available to pay workers and buy goods, precipitating depression and further economic pain. Read More Here

(Reuters) – Philly Fed Factory Activity Index Plummets in June

Factory activity growth plummeted in the Mid-Atlantic region in June, a survey showed on Thursday, adding to worries that the short and tepid U.S. economic recovery is now fizzling. Read More Here

(StarTribune) – Video: In jail for being in debt

You committed no crime, but an officer is knocking on your door. More Minnesotans are surprised to find themselves being locked up over debts. Read More Here

(EconomicPolicyJournal) – Swiss Legislators Sell American Tax Evaders Down the River to Bailout Big Bank

The legislators have approved a law that clears the way for the government to hand over the names of thousands of alleged U.S. tax evaders to the Internal Revenue Service, dodging the risk that the U.S. would reopen a bruising tax case against Swiss bank UBS AG, according to WSJ. Read More Here

(RawStory) – US jobless claims in surprise rise

New claims for jobless insurance benefits in the United States rose unexpectedly for the second straight week, the government said Thursday on concerns unemployment may derail the economic recovery. Read More Here

(NBCSandiego) – New Wave of Cuts at Union-Tribune: Sources

The San Diego Union Tribune told employees Thursday the company is cutting close to 40 newsroom positions, according to sources. Read More Here

(Bloomberg) – Illinois Debt-Default Insurance Climbs to Record High (Update1)

“If the spread is the widest, it says the problem is bigger than it’s ever been before,” said Peter Hayes, who oversees $106 billion of municipal bonds for New York-based BlackRock Inc. “It’s a reaction to the inability to pass a budget. We’ve seen a greater unwillingness from Illinois and the market is reacting to that.” Read More Here

BREAKING – (SCMLA) – Video: Banks In Oaxaca, Mexico No Longer Accept American Dollars

SoCal Martial Law Alerts (SCMLA) interviewed Lee, an American who discovered while on a recent (Christian) mission trip to Oaxaca, Mexico, that Mexican banks will no longer exchange American dollars for Mexican pesos.

Lee said that, when he first arrived in Oaxaca two weeks ago, the banks would still exchange American dollars for Mexican pesos, but then when he accompanied a friend to a Mexican bank approximately one week ago, that’s when he discovered the policy change regarding dollar-to-peso currency exchanges. Continue reading

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. Continue reading

Economy

(InfoClearingHouse) – Finance 101: Blame the Poor (While Taking Their Money) – Read More Here

Video: Daniel Cohn-Bendit (english subtitles) about Greece’s financial woes

Euro deputy Daniel Cohn-Bendit (Greens/EFA) challenges the European Commission and Parliament about their stance on financial support for Greece. Read More Here

(BusinessInsider) – Why The UK Is The Next European Country To Experience A Massive Debt Crisis – Read More Here

(Bloomberg) – Video: Jim Rogers – Gold has HUGE potential! – Video Link Here

(DrHousingBubble) – Housing never really improved – 10 charts showing the United States housing market is entering the second wave of problems. 1 out of 4 people with no mortgage payment in the last year are still not in the foreclosure process – Read More Here

(FinancialTimes) – Portugal to unveil ‘crisis tax’ to cut deficit

José Sócrates, Portugal’s prime minister, will announce tough new austerity measures on Thursday, including a “crisis tax” on companies and wages, to accelerate cuts in the country’s gaping budget deficit. Read More Here

(PaulWatson) – CEO Predicts Market Armageddon: Dow To 5,000

Cornerstone Wealth Management CEO David Hefty agrees with a growing number of other financial experts that a real estate collapse in China before the end of the year will send shockwaves through the global economy, leading to a stock market collapse which will send the Dow into free fall below the 5,000 level. Read More Here

(RussiaToday) – Video: Gerald Celente – “we are going to see more and more violence” Greek Crisis

Amid a financial bailout in Europe, it is the banks that are doing the robbing, says trend forecaster Gerald Celente. He believes the ensuing protests are well-deserved and will not stop. Video Link Here

(PeterSantilli) – You Are Being Lied To By The Entire Financial System

Almost every US Corporation will do and say anything to keep us spending money, regardless of what they know about the fragility of our entire financial system. Bankster’s are now using world governments as patsies to commit the largest heist in world history. Stealing a trillion dollars from US citizens proved to be too difficult, as they had to receive congressional approval to bail themselves out. They’re recent scam involves using central banks to bypass democracy & funnel money to offshore entities without oversight. Read More Here

(BusinessInsider) – Video: Raw Footage Of Violent Bailout Protests In Ireland

It’s not just Greece. Via The Daily Bail, here’s what the Irish street looks like, as protesters attempt to storm parliament in protest of bank bailouts. Video Link Here

(InternationalForecaster) – Europe and America Morally and Financially Bankrupt – Bob Chapman

Greece has its immediate financing. Now the question is can they follow the prescription? In all likelihood the answer is no. the bond markets are reflecting that via a lack of confidence. In fact, some bond markets are falling apart and there is no end in sight. We have bond rating firms lowering ratings, as the rating services themselves are under serious fire and we do not believe they will be around long. The big question is why did it take two years and 10 months to react? Read More Here

(ZeroHedge) – First Gold, Now Europe Running Out Of Silver – Tyler Durden

Earlier we noted that the Austrian mint was on its way to depleting its gold reserves following “panicked buying” from Europeans, who now openly fear the demise of their currency. Now, courtesy of Slim Beleggen, we understand that the situation in the silver market is just as bad and has also spilled over to Germany: the contagion is no longer one of sovereign debt, but of precious metal physical inventory. Read More Here

(PaulWatson) – Gold Could Explode To $3,000 As Confidence In Currencies Collapses

Financial analyst David Rosenberg says gold could explode to $3,000 an ounce as European investors dump the ailing euro in exchange for the precious metal while JP Morgan states that bullion could face unlimited demand as panic buying ensues on the back of crumbling confidence in fiat currencies. Read More Here

(FoxBusiness) – Video: Peter Schiff – Buy Gold – Video Link Here

(RussiaToday) – Video: Gerald Celente – Banks robbing the people – Video Link Here

(Bloomberg) – Video: Is Portugal the next Greece? – Video Link Here

(WashingtonsBlog) – California Is More Likely to Default than Iceland or Iraq

The Federal Reserve isn’t the only one who owns credit default swaps betting that California will default.

As Ed Harrison points out, credit default traders have now ranked California in the list of top 10 governments most likely to default, with a 20% default probability: Read More Here

(WSJ) – Gulf Oil Spill Is Spoiling Tourism

A survey conducted by the Knowland Group May 3 and 4 of 50 hotel properties along the Gulf Coast found that 35% of respondents say the oil spill has prompted potential guests to cancel their reservations. Read More Here

(BusinessInsider) – The U.S. Government Is About To Get Hit With ‘The Perfect Storm’ Of Debt – Read More Here

(Examiner) – Economist Tim Madden: The PIIGS Brief: understanding how oligarchs rig, loot our economies. 3 of 4

Tim Madden is an economist with expertise on credit and banking. Tim and I are colleagues in lobbying government for public banking, with concentration in the US for state-owned banks (and here). The good news is that structural solutions to our economic controlled demolition are obvious and simple; and explained beautifully by many of America’s brightest historical minds. The bad news is that we’re still mired in oligarchic looting of our economies. Read More Here

(IceNews) – Yet another day of Iceland banking arrests

Ingolfur Helgason, the former Director of Kaupthing Iceland, and Steingrimur Karason, former CEO of the bank’s risk management department, were both arrested today upon arriving back in Iceland. They went straight to interrogation with the Special Prosecutor and are being held in police cells. Read More Here

Lots Of Layoffs As The Depression Worsens

Ciena Corporation – 140 International Jobs
Jordan School District Utah – 190
Apria Healthcare – 29
City of Garfield NJ – Considering 20 Job Cuts
The city of Lewiston Maine – 22 Positions
Takeda Pharmaceutical Chicago – 500
Diageo Plc, – Job Cuts Coming Soon
Auburn University AL – 12 Custodian Workers
Update: Charlotte-Mecklenburg Schools – 500 Layoff Notices
Long Beach School District – 243
Oceanside Unified School District – Finalize 61 Layoffs
The Mt. Diablo school CA – 200
Peterborough Regional Health ( International ) – 20 Management
Ranch Market – 200
NY Health and Hospitals Corporation – 500
Viz Media – 60
Los Angeles CA – 1,700 Layoffs Needed to Close Budget Gap
Milford Hospital Connecticut – Layoffs are planned
AM General Mishawaka plant – 50
The City of Xenia Ohio – 9
Chevron Corporation – 925
Barnegat Township Schools NJ – 25 More
General Dynamics/NASSCO – 900 San Diego Layoffs Possible
Madison Heights MI – up to 48 Possible
Rocklin Unified School District CA – 50
The El Segundo schools CA – 20

(FoxBusiness) – Video: Ron Paul – Stop the Bailout of Foreign Banks! – Continue reading

Video: Peter Schiff – Greece Should Have Been Allowed To Default

Economist Peter Schiff explains why Greece should have been allowed to default and not been bailed out, which will merely result in its debt being socialized and the people of Europe suffering while the underlying problem remains unchanged. Continue reading

Banks Bailed Out By American Taxpayers

(WashingtonsBlog) – Americans bailed out the giant banks. So how do the too big to fails re-pay the American taxpayers?

By betting that American states and cities will fail.

As the Wall Street Journal notes:

As U.S. cities and towns wrestle with financial problems, investors are finding a new way to profit on their misery: by buying derivatives that essentially bet municipalities will default.

These so-called credit default swaps are basically insurance contracts that have long been available to protect holders of corporate bonds against default. They became available a few years ago for municipal debt, allowing investors to short sell—or bet against—countless cities, towns and bridges, and more than a dozen states, including California, Michigan and New York.

The derivatives are still thinly traded, but their existence has the potential to make investors skittish

Continue reading

Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade

(WashingtonsBlog) – As I have previously shown, speculative derivatives (especially credit default swaps or “CDS”) are a primary cause of the economic crisis. They were largely responsible for bringing down Bear Stearns, AIG (and see this), WaMu and other mammoth corporations.

According to top experts, risky derivatives were not only largely responsible for bringing down the American (and world) economy, but they still pose a substantial systemic risk: Continue reading

Economy

(CNN) – Jobless claims up 12% in past 2 weeks

The number of Americans filing for initial unemployment insurance surged to just below the 500,000 level last week, and have climbed more than 12% over the past two weeks, the government said Thursday. Read More Here

(HuffingtonPost) – The IMF Destroys Iceland and Latvia

The International Monetary Fund operates primarily as a banker bailout machine. They cajole and tempt and confuse and threaten the leaders of governments worldwide to pay off the failed bets of the big bankers using the taxpayer funds of their countries. This has been going on a long time, at least since the early 1980s. Read More Here

(Fox) – New Jobless Claims Jumped to 496,000 as Heavy Snow Caused Rise in Layoffs

In addition, many state agencies in the mid-Atlantic and New England regions that process the claims were closed due to the storms and are now clearing out backlogs, a Labor Department analyst said. Read More Here

(SeekingAlpha) – Something Very Strange Is Happening With Treasuries

There are times in life when one witnesses something so outside the scope of normal experience, that at first you don’t see it. Read More Here

(SydneyMorningHerald) – British lender RBS plans huge bonuses despite losses

Losses at Royal Bank of Scotland narrowed sharply last year, the state-rescued lender said Thursday as it prepared to dish out bonuses reportedly totalling 1.6 billion pounds (1.8 billion euros, 2.4 billion US dollars). Read More Here

(Reuters) – EMU could collapse if one member defaults -Germany

A debt default by one euro zone member could end the single currency union but this is unlikely, the head of the German debt management agency said on Thursday. Read More Here

(Reuters) – Tax officials caught over unpaid fines

There were some embarrassed faces at Bulgaria’s tax office on Thursday after an investigation found more than 400 tax inspectors had failed to pay their traffic fines. Read More Here

Video: Real list of countries on verge of bankruptcy

(TheComingDepression) – Let’s talk a bit about these supposedly broke governments that have been reaching insolvency, and in cases like Iceland in 2006 and Argentina in 2001, have declared bankruptcy. It seems to most, as it would to anyone not ideologically retarded, that for all the public “brokeness” going on, there is always enough money for a bailout for some big bosses. Indeed, there’s never a shortage of money (or credit; whatever you want to call it) when it comes to buying up some big boss’ bad debt, or fleecing the public purse to provide him (them) with a fat tax cut so they can “create jobs” (see: off shore, low wage). Continue reading

Video: Ferguson and Faber – Sovereign Debt Crisis Will Spread World-Wide, U.S. Debt Is Unsafe

(WashingtonsBlog) – In a must-read essay, Niall Ferguson slams the prevailing Keynesian consensus, and says that the sovereign debt crisis in Greece will spread to America:

What we in the western world are about to learn is that there is no such thing as a Keynesian free lunch…

US government debt is a safe haven the way pearl harbor was a safe haven in 1941.

And in a must-watch interview, Marc Faber says that the US, Europe and the entire developed world will default on their debt:
Watch Video at Source

See Also:

Both long and short U.S. bond auctions are starting to fail. See this, this, this and this.

Tyler Durden concludes:

China is finally coming through on its Bond boycott promises.

For background, see this.

Video: More Spending Is Always the Answer – Ron Paul

(C4L) – Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend. It is not likely to be very long before this new ceiling is met and the government is back on the brink between default and borrowing us further into oblivion. Congressional leaders and the administration acknowledge that the debt limit will need to be increased again next year. They are crossing their fingers that the forecasts are correct and they will not need another increase sooner, even before the 2010 midterm elections. Continue reading

What Do Rising Sovereign Credit Default Swaps Mean?

(WashingtonsBlog) – Rolfe Winkler argues that – in the short-run – the PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) will slash their budgets and get bailed out by the EU. Continue reading

The “Other Reason” Why the U.S. is Not Regulating Wall Street

(WashingtonsBlog) – Sure, American politicians have been bought and paid for by the Wall Street giants. See this, this and this.
And everyone knows that the White House and Congress – while talking about cracking down on Wall Street with strict regulation – have actually watered down some of the most important protections that were in place. Continue reading

The Bankruptcy of the United States is Now Certain – Porter Stansberry

It’s one of those numbers that’s so unbelievable you have to actually think about it for a while… Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that’s not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That’s an amount equal to nearly 30% of our entire GDP. And we’re the world’s biggest economy. Where will the money come from? Continue reading

The second wave of mortgage defaults and foreclosures will hit the economy this year – Bob Chapman

As we have been forecasting for the last two years, the second wave of mortgage defaults and foreclosures will hit the economy this year. Not only will we have failure in prime loans and option-arm loans, but we are faced with a new crop of subprime and ALT-A loans put into motion by Fannie Mae, Freddie Mac, Ginnie Mae and FHA. In addition, we find it of great interest that the FHA is changing the rules to purchase homes. That, of course, means less homes will be purchased. Continue reading

MSM: Global sell-off shudders markets as euro plunges to 8-month low amid fears of debt default

(DailyMail) – London’s top stocks lost another one per cent today as worries over US and European economic health sparked a sell-off for the second session in a row. Continue reading

MSM: Democrats propose $1.9T increase in debt limit

(AP) – Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $1.9 trillion to pay its bills, a record increase that would permit the national debt to reach $14.3 trillion. Continue reading

Is a U.S. Default Inevitable? – Patrick Buchanan

We were blindsided. We never saw it coming.
So said Goldman Sachs CEO Lloyd Blankfein of the financial crisis of 2008. He likened its probability to four hurricanes hitting the East Coast in a single season. Continue reading

Video: Marc Faber – The Next Crisis, Sovereign Debt

(Yahoo) – After every financial crisis there’s a sovereign debt crisis, Marc Faber says. Countries that borrowed too much during the boom times start struggling to pay their competitors back, and eventually some of them default. Continue reading

Princeton Economist and Computer Scientists Show that Derivatives Are Inherently Vulnerable to Fraud

(WashingtonsBlog) – As I have previously noted, credit default swaps are destabilizing for the economy. See this. And the models used to evaluate financial instruments – such as the Gaussian copula formula for CDOs – are inherently flawed. Continue reading

EU/IMF Revolt: Greece, Iceland, Latvia May Lead The Way

Europe’s small, debt-strapped countries could follow the lead of Argentina and simply walk away from their debts. That would shift the burden to the creditor countries, which could solve the problem merely by a change in accounting rules.
Total financial collapse, once a problem only for developing countries, has now come to Europe. The International Monetary Fund is imposing its “austerity measures” on the outer circle of the European Union, with Greece, Iceland and Latvia the hardest hit. But these are not your ordinary third world debtor supplicants. Historically, the Vikings of Iceland repeatedly repulsed British invaders; Latvian tribes repulsed even the Vikings; and the Greeks conquered the whole Persian empire. If anyone can stand up to the IMF, these stalwart European warriors can. Continue reading

Financial Reform Is Being Gutted … And Congress Might Not Even Realize It

(WashingtonsBlog) – As I have repeatedly pointed out, proposed derivatives legislation will not make things better:
A leading credit default swap expert (Satyajit Das) says that the new credit default swap regulations not only won’t help stabilize the economy, they might actually help to destabilize it. Continue reading

Joyce warns of US ‘Armageddon’

(BrisbaneTimes) – THE OPPOSITION finance spokesman, Barnaby Joyce, believes the United States government could default on its debt, triggering an ”economic Armageddon” which will make the recent global financial crisis pale into insignificance. Continue reading

Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade

(WashingtonsBlog) – As I have previously shown, speculative derivatives (especially credit default swaps or “CDS”) are a primary cause of the economic crisis. They were largely responsible for bringing down Bear Stearns, AIG (and see this), WaMu and other mammoth corporations. Continue reading

MSM: Dubai Crisis May End in ‘Major’ Default, BofA Says

(Bloomberg) – Dubai’s debt woes may worsen to become a “major sovereign default” that roils developing nations and cuts off capital flows to emerging markets, Bank of America Corp. said. Continue reading

Dubai Debt Sends Panic: A Dangerous New Phase In The Global Economic Crisis

(PakAlert) – Fears of a dangerous new phase in the economic crisis swept around the globe yesterday as traders responded to the shock announcement that a debt-laden Dubai state corporation was unable to meet its interest bill. Continue reading

Our Chief Industry: War

(AntiWar) – We often hear the complaint that America doesn’t make anything anymore: that is, our economy seems driven not by producing actual things, but utterly intangible creations such as credit default swaps and securitized sub-prime mortgages. Continue reading

Video: Hosts and Parasites – The Consequences of Default

Michael Hudson on Max Keiser – What happens when a country goes broke? Continue reading

Obama and the fiscal crisis of the states

The class character of the Obama administration is clearly indicated by one statistic: President Obama has made available more than $12 trillion in cash infusions, loans and guarantees to the financial industry, but for state governments that are facing massive budget deficits, Obama has thus far provided only one quarter of 1 percent of that amount in federal stimulus funds—about $30 billion. Continue reading

Wall Street Titans Use Aliases to Foreclose on Families While Partnering With a Federal Agency

A federal agency tasked with expanding the American dream of home ownership and affordable housing free from discrimination to people of modest means has been quietly moving a chunk of that role to Wall Street since 2002. Continue reading

China Has Already Walked Away from Derivatives Contracts

You’ve probably heard that China has threatened to walk away from certain commodity derivatives contracts.
As Reuters reported in August: 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

Derivatives Collapse and the China Gold and Silver Markets

(BobChapman) – In 2009, China opened up various exchanges for investment in both gold and silver to the Chinese public, which previously was not allowed to invest in gold and silver. The opening of silver exchanges to the Chinese public is the most recent development and was accompanied by a ban on silver exports. The Chinese government is actively touting both gold and silver as an investment to the Chinese public, and with good reason. Continue reading

Senate must raise debt ceiling above $12T

The Senate must move legislation to raise the federal debt limit beyond $12.1 trillion by mid-October, a move viewed as necessary despite protests about the record levels of red ink. Continue reading

Video: Webster Tarpley – Say Hello to Jingle Mail

Webster describes what the meaning of Jingle Mail as the retail – commercial and real estate market is on the verge of collapse.. Continue reading

Audio: Guns And Butter – Dress Rehearsal For Debt Peonage

“Dress Rehearsal For Debt Peonage” with economist Dr. Michael Hudson on why the banks are returning the bailout money; bank fees and penalties; banks prefer default to foreclosure; debt as wealth; Obama’s Financial Regulatory Reform Proposal and its six major flaws; the deregulation-by centralization ploy; failure to reform the economy will lead to debt peonage. Continue reading

Memo to Bernanke: “No Wage Growth; No Recovery”

A recent poll shows that most economists now believe that the recession, which began in December 2007, will end in the third quarter of 2009. There’s been an uptick in manufacturing and consumer confidence, and the decline in housing prices appears to be flattening out. Unfortunately, the return to positive GDP will likely be short-lived. Continue reading