Why The Saudis Hold the Cards Right Now

(OilandGasInvestmentBulletin) – Current OPEC spare capacity would suggest a lower world oil price, but the distribution of this spare capacity could be one reason why oil prices are higher than many experts think it should be.

Usually the more spare capacity (supply) in a market there is the lower the price – simple economics. But the reality is that Saudi Arabia is the only country in the world with significant spare capacity to produce more oil in the world and influence prices. And they currently favour a $70-$80 barrel oil price.

In 2003, OPEC had 2 million barrels a day LESS spare capacity it has now, and oil was under $40/barrel – but spare capacity was more evenly spread out among the 11 member states.

If everybody has spare capacity, the potential for cheating on production quotas is greatly increased and that carries a higher downside risk for prices. Should the world economy grow more quickly, only the Saudis have the ability to increase production enough to meet demand and influence prices. Read entire article

Economy

(SteveWatson) – Gold Prices Heading For Record Highs

Gold futures surged toward record highs Thursday as the stock market and the U.S. economy continued to flounder, leaving investors seeking a safe haven in hard assets. Read More Here

(BusinessInsider) – CHART OF THE DAY: Food Prices Are About To Explode – Read More Here

(Leap2020) – Global systemic crisis / Second half of 2010: The global system’s four single points of failure

Each day the news confirm the extent to which the global systemic crisis has now entered into the phase of global geopolitical dislocation, even if the media only timidly begin to interpret the historic upheavals which unfold before our own eyes. For LEAP/E2020, the second half of 2010 will thus correspond to a new step in the global geopolitical dislocation, characterized by an acceleration in the process of strategic, financial, economic and social convulsions centered on four single points of failure Read More Here

(MSNBC) – Home builders won’t lift the economy this time

Homebuilders are sending a message: They won’t be able to contribute much to the economic recovery now that government home-buying incentives have vanished. Read More Here

(InterForecaster) – Federal Reserve Purchases U.S. Sovereign Debt – Bob Chapman

We believe an inflationary depression began in February of 2009, and little has changed. Since then factory output has increased, as have inventories and other outward signs, such as retail sales. We believe that one-year spurt is ending, unless a new stimulus program is put in place. Read More Here

(ZeroHedge) – 100 Italian Economists Say Austerity Will Destroy Europe

The Telegraph’s Ambrose Evans-Pritchard points to a letter signed by 100 Italian economists (technically Keynesianites, but in the great Ponzi, the two have become synonymous) in which they note that “the austerity strategy imposed by Brussels/Frankfurt risks tipping Europe into a self-feeding downward spiral. Read More Here

(TheStreet) – Gold Prices Reach for $1,254

Gold prices were gunning to break their record high Thursday as an uncertain stock market fueled demand for gold as a safe haven asset. Read More Here

(CNNMoney) – Out-of-work job applicants told unemployed need not apply

The last thing someone who is unemployed needs to be told is that they shouldn’t even apply for the limited number of job openings that are available. But some companies and recruiters are doing just that. Read More Here

(Reuters) – More Than 90 Banks Miss TARP Payments – Read More Here

(June 16) – Video: Alex Newman Reveals Fed Manipulations & ‘Bernanke’s Trillions’ on Alex Jones Tv

New American journalist Alex Newman talks with Alex about his latest article, Fed Manipulations in the Crosshairs. “It turns out that under the guise of “stabilizing” the economy, the Federal Reserve banking cartel had set in motion a series of actions that would eventually transfer trillions to the bankers at taxpayers’ expense, all while decimating the investments of countless average Americans,” writes Newman. Alex also covers the news and takes your calls. Continue reading

Economy

(GoldPrices) – Gold, Silver and Mining Companies Shaping Up

We will kick off with a review of the charts for gold, silver and the gold bugs index, the HUI, in an attempt to see where we are now and just where we might go from here. However, to put the charts into context we need to take into consideration the surrounding political, economic and investment landscape. These are volatile times with the financial markets in turmoil as what were perceived to be sound and secure governments now toil under the strain of their own excesses. The borrow and spend philosophies are coming back like a bad penny, to haunt not just those who caused this mess, but also for the rest of us, who are expected to clear it up. Read More Here

(InternationalForecaster) – Towards Another Stock Market Meltdown? – Bob Chapman

This past week the Dow fell 4%, S&P 4.2%, the Russell 2000 fell 6.4% and the Nasdaq 100 fell 4.4%. Banks fell 5.4%; broker/dealers 4%; cyclicals fell 5.6%; transports 5.5%; consumers 3.4%; utilities 4.3%; high tech fell 3.7%; semis 1.3%; Internets fell 4.2% and biotechs 4.2%. Gold bullion fell $56.00, the HUI gold index fell 11.4% and the USDX, dollar index, fell 0.8% to 85.38. Read More Here

(BusinessInsider) – Video: Marc Faber – “The Banks Are Gone” – (Part 1 Video Below)

Marc Faber spoke with Bloomberg Television about his bearish views on markets yesterday, and they remain as bearish as always.

“The banks are gone,” according to Marc Faber, and are only being kept alive by European Central Bank and government aid programs. Part 2 Here

(HuffingtonPost) – $1 Trillion for Wars Makes No Sense By Any Measure

This May 30 at 10:06 a.m., we will reach another dubious milestone in our almost nine years of war. At that precise moment, we will have spent $1 trillion in operational costs for the wars in Iraq and Afghanistan, tracked by the National Priorities Project’s cost of war counter. Read More Here

(SteveWatson) – Secret Clause Reveals Europe Bailout Designed To Destroy Global Economy

A secret exit clause written into the trillion dollar European bailout agreement will ensure the creation of more debt in Europe, worsening the global economy, decimating nation states and allowing power to be consolidated into fewer super-elite hands.

As the Financial Times reports today, the major German newspaper Bild says it has obtained a copy of the bailout agreement and has set about “exposing” a series of secret clauses. Read More Here

(GoldScents) – How Do You Answer The Question

Let me start off by pointing out that we did indeed break below the yearly cycle low yesterday. Read More Here

(AP) – Falling home prices stir fears of new bottom

Tax credits and historically low mortgage rates have failed to lift home prices so far this year. Prices fell 0.5 percent in March from February, according to the Standard & Poor’s/Case-Shiller 20-city index released Tuesday.

That marks six straight months of declines — a sign that the housing market is going in reverse. Read More Here

(BigGovernment) – Faber: Nations Will Print Money, Go Bust, Go to War…We Are Doomed

Today the leading Austrian economic think tank, the Ludwig von Mises Institute held a conference at the University Club in Manhattan in which Marc Faber, famed contrarian investor and publisher of the “Gloom, Boom and Doom Report” gave his perspective on the financial crisis and his outlook for the future. Read More Here

(CNBC) – Libor Spike Is Rekindling Fears Of Another Financial Crisis

A recent spike in the rate banks charge each other for short-term borrowing is reviving investor fears that the market is returning to the abyss of the credit crisis. Read More Here

(OilPrice) – The Hard Truth About Residential Real Estate

Anyone who believes that housing is on the rebound, and that now is the time to buy, should take a very hard look at the numbers I dredged up for my spring lecture and luncheon tour.

There are 140 million personal residences in the US. Today, there are 26 million homes either directly or indirectly for sale. Read More Here

(Cryptogon) – Plummeting Marijuana Prices Create A Panic In California

Understand the purpose of the drug war with just one story. Hint: Law enforcement is used to keep supplies down and prices high.

So what changed?

California is broke and the state government wants a cut of the action. Read More Here

(RevoltofthePlebs) – Fear and Loathing (and Lost Wages)

Last week, Barrack Obama brought his stage show to a manufacturing plant in Youngstown Ohio and took credit for 290,000 new jobs added to US payrolls in April. “The fact is, our economy is growing again,” he boasted “Any fair-minded person would say that if we hadn’t acted … more people across America would be out of work today.” He’s speaking of course of the $787 billion Recovery Act that pumped even more counterfeit cash into the economy and is now redeemable (at interest) by the Federal Reserve from your American tax dollar. Read More Here

(BusinessWeek) – Christie Says N.J. ‘Careening Toward Becoming Greece’

New Jersey Governor Chris Christie said the state is “careening our way toward becoming Greece” and can’t afford the cost of benefits and pensions for current workers. Read More Here

(Bloomberg) – Moody’s Reiterates U.S. Spending Risks Credit Rating

The U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce projected record budget deficits, according to Moody’s Investors Service Inc. Read More Here

(FoxNews) – Despite Soaring National Debt, Congress Goes on Spending Spree

As the national debt clock ticked past the ignominious $13 trillion mark overnight, Congress pressed to pass a host of supplemental spending bills to, among other things, fund the continuing wars in Afghanistan and Iraq, ramp up security on the U.S.-Mexico border and prevent teacher layoffs. Read More Here

(PaulWatson)  – Video: Rothschilds Engineer Fire Sale Of UK Infrastructure To Offshore Corporations

The Rothschild banking family is pushing for the privatization of the UK’s motorway network that would force Brits, who already pay road tax, to enrich the coffers of private corporations intimately tied in with the Rothschilds by means of road tolls and pay-by-mile schemes enforced with spy cameras.

“A plan to privatize the UK’s motorway network, giving toll firms access to large swaths of road, would take place under the guise of paying down the government’s debt, British media reported Tuesday, citing a number of key officials who support the scheme, proposed to all major political parties by NM Rothschild, one of the world’s oldest, most influential and little discussed investment banks, founded by the Rothschild family,” reports Raw Story.Continue reading

Economy

(Vlog) – Video: Peter Schiff – Income Tax vs Consumption Tax – Video Link Here

(RevolutionaryPolitics) – Why Are Silver Sales Soaring?

The U.S. Mint just reported another record, but this time it wasn’t for gold. The Mint sold more Silver Eagles in March and in the first quarter of the year than ever before. A total of 9,023,500 American Silver Eagles were purchased in Q110, the highest amount since the coin debuted in 1986. Read More Here

(MarketWatch) – Paulson & Co. not charged in SEC suit against Goldman

Paulson & Co. became enmeshed in a Securities and Exchange Commission civil lawsuit filed Friday against Goldman Sachs Group Inc. But the hedge-fund giant wasn’t charged. Read More Here

(Breitbart) – California jobless rate swells to 12.6 percent

California’s unemployment rate hit a modern record of 12.6 percent in March, though it rose only a fraction over the previous month, the state Employment Development Department reported Friday. Read More Here

(GlobalResearch) – The Economic Crisis in the UK: Inflation and Debt Default Bankruptcy – Read More Here

(RealNews) – Video: Can US Dollar Remain World’s Currency? – Video Link Here

(InfoClearingHouse) – Housing Crash Update: There’s A World of Pain Ahead – Mike Whitney

The brief period of stabilization in housing appears to be over and the next leg-down has begun. Mortgage rates are edging higher, foreclosures are on the rise, and the government programs that supported the sector, are being phased out. Read More Here

(Bloomberg) – Goldman Sachs Sued by SEC for Fraud on Mortgage-Backed CDOs

Goldman Sachs Group Inc. was sued by U.S. regulators for fraud tied to packaging and selling collateralized debt obligations that contributed to the worst financial crisis since the Great Depression. Read More Here

(WRH) – Vote Fraud and the Bankruptcy of the United States

Note: This article first appeared as a post written by myself(Michael Rivero) at Free Republic in late 2000. I was surprised to learn that it was copied re-posted at dozens of sites around the world. So, it seems only fitting that the article should re-appear here on my own web site. Read More Here

(MyBudget360) – The Great American Bank Heist – On the Day we Reach a Monthly Foreclosure Filing Record Banks Announce Record Profits and the Stock Market is up 80 Percent – Read More Here

(WashingtonsBlog) – Yet Another Reason To Break Up The Big Banks – Read More Here

(RawStory) – Wamu bankers sang ‘I like big bucks and I cannot lie’ before bank failed – Read More Here

Video: Ron Paul vs. Ben Bernanke at JEC Hearing April 14, 2010 – View Video Here

(Reuters) – Markets could be derailed again, warns Soros

Railway porter-turned-billionaire financier George Soros delivered a stark warning last night that the financial world is on the wrong track and that we may be hurtling towards an even bigger boom and bust than in the credit crisis. Read More Here

(CommodityOnline) – Silver prices to zoom if manipulation is proved

As the CTFC begins to investigate claims by a whistle blower that the precious metals markets have been manipulated by several large US banks, investors are left to ponder: “What will happen to silver if manipulation is found?” Can you say, payday? Read More Here

(ZeroHedge) – March Foreclosures Surge To Absolute Record, At 369,491, 19% Jump from February

RealtyTrac reports the next catalyst that will surely take the Dow to 12,000 by 9:31 am tomorrow. “Foreclosure filings were reported on 367,056 properties in March, an increase of nearly 19 percent from the previous month, an increase of nearly 8 percent from March 2009 and the highest monthly total since RealtyTrac began issuing its report in January 2005.” And people were wondering where consumers get all their money from. Read More Here

(USDepartmentofLabor) – Unemployment Insurance Weekly Claims Report

In the week ending April 10, the advance figure for seasonally adjusted initial claims was 484,000, an increase of 24,000 from the previous week’s unrevised figure of 460,000. The 4-week moving average was 457,750, an increase of 7,500 from the previous week’s unrevised average of 450,250. Read More Here

(ZeroHedge) – Morgan Stanley Warns Germany May Decide To Secede From EMU

A fantastic overview of all the game theory aspects embedded in the European crisis, from Joachim Fels, head of Euro research at Morgan Stanley.

* Somewhat paradoxically, the show of solidarity for Greece by other euro area members and the ECB raises the risk that the euro will break apart eventually.
* Seceding from the euro area to devalue is very costly and risky. But seceding to revalue and introduce a harder currency is easier. Germany might opt to do so one day.
* The road to such a break-up scenario leads through even more fiscal profligacy and divergence in the euro area, a politicisation of monetary policy, and a weaker currency. Recent events suggest that the trip down this road has started.
Read More Here

(CNBC) – Video: Eric Sprott on the Economy, the Markets, and the PHYS Gold Trust Continue reading

BOMBSHELL – Whistle Blower Comes Forward With Solid Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial Institutions

For a long time many of us have had very serious suspicions that the prices of gold and silver were being highly manipulated. But now, thanks to the mind blowing testimony of one very brave whistle blower, the blatant manipulation of the world gold and silver markets is being blown wide open. What you are about to read below is absolutely staggering. Once the American people learn how incredibly corrupt the world financial system is, it is going to change everything. The government that we are all trusting to guard the integrity of the financial system is failing to do that job. It turns out that the Commodities Futures Trading Commission has been sitting on solid evidence that the elite banking powers have been openly and blatantly manipulating the price of gold and silver. Even though they were basically handed a “smoking gun”, they have done absolutely nothing with it. But now the information has gone public and the CFTC is red-faced. Continue reading

Very Good Reason to Believe Home Prices Will Collapse – Peter Schiff

The latest housing initiative announced today by the Obama Administration draws the U.S. government and, by proxy, all taxpaying Americans, further into the inescapable quagmire of a devastated real estate market. Continue reading

Video: Gold May Reach $5,000 an Ounce By 2012

(Bloomberg) – Robert McEwen, chairman and chief executive officer of U.S. Gold Corp., talks with Bloomberg’s Erik Schatzker and Deirdre Bolton about the outlook for gold prices. McEwen expects gold prices to increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt depreciates the value of the dollar. Continue reading

MSM: Dollar falls, sending gold to record high

(AFP) – The dollar fell on Monday as China accused the United States of increasing protectionism and following unexpectedly strong Japanese economic growth figures, pushing gold prices to a record high point. Continue reading

Video: Greg Gordon on Alex Jones Tv – Goldman Sachs’s Little Secret!!

Greg Gordon, a reporter for McClatchy Newspapers, talks with Alex about Goldman Sachs Group peddling more than $40 billion in securities backed by at least 200,000 risky home mortgages and never telling the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting. Continue reading

MSM: Developed countries face threat of soaring prices and food shortages

(GuardianUK) – Goldman Sachs analyst warns of crisis as nations gather in London to discuss food security Continue reading

How Goldman secretly bet on the U.S. housing crash

In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting. 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

The Biggest Bust Will Follow the Biggest Bubble

Our “Crash Alert” flag goes back up the pole…
October is almost half over. Will we get through the month without a major sell-off? Continue reading

The Ongoing Cover Up of the Truth Behind the Financial Crisis May Lead to Another Crash

William K. Black – professor of economics and law, and the senior regulator during the S & L crisis – says that that the government’s entire strategy now – as during the S&L crisis – is to cover up how bad things are (“the entire strategy is to keep people from getting the facts”). Continue reading

Rich Uncle Pays Your Mortgage – Lew Rockwell

The economic meltdown has put the country on the fast track to socialism, but through a series of tiny steps. One need only to examine the supposed victories in the war on depression to see how this is happening. The latest is the claim that the Obama administration has successfully renegotiated many mortgage obligations in a way that allows people to keep their homes. Continue reading

MSM: The stock market rally is just another bubble – and it’s set to pop

(MoneyWeek) – Stock markets continue to expect the best of all worlds.
There will be a V-shaped recovery. Everything is headed back to normal. At least, that’s what you’d believe if you just look at the way stocks have surged. Continue reading

Iraqi Oil Minister Accused of Mother of All Sell-Outs

(Truthout) – To public fury, the country is handing over control of its oilfields to foreign companies. Continue reading

The hunt is on for more ammunition in Nevada, U.S.

Supply can’t keep up with demand, a trend that began after election Continue reading

“We don’t want your tired, poor, huddled masses yearning to trash the planet” The Federal Reserve, 2009 – Robert Singer

(Robert Singer) – Having trouble understanding the events since the October 2008 financial crisis?
Any of this sound familiar:
* · Banks hoarding their TARP funds
* · Gas prices going up when they should be going down
* · Automobile dealerships closed without regard to profitability
* · Health Care reform: The Kevorkian is out of jail early Continue reading

Video: Lindsey Williams on Alex Jones Tv – The Coming Food Crisis of 2009!!

(FLASHBACK – March 2009) – Alex welcomes back to the show Alaskan-pastor Lindsay Williams, who accurately predicted the fall of oil prices based on insider information. Continue reading

MSM: Climate plan calls for forest expansion

(USAToday) – New forests would spread across the American landscape, replacing both pasture and farm fields, under a congressional plan to confront climate change, an Environmental Protection Agency analysis shows. Continue reading

2008 Financial Collapse: An Inside Job – Robert Singer

(Dprogram Exclusive) – Maybe it’s the smoke from Mt. Vesuvius that keeps Arianna Huffington and the financial community from seeing that the economic collapse has nothing to do with the Fed “missing” the warning signs leading up to the October meltdown. Continue reading

Will endless wars save the dollar?

“Since 1945, the US dollar has been the world reserve currency. As its value depreciates, countries holding huge dollar reserves begin to worry. China in particular has expressed grave concerns since it holds nearly $2 trillion in US currency reserves, mostly in the form of US treasury bonds. According to some reports, it is drawing down its dollar reserves by purchasing gold and stocks of raw materials and energy.” Continue reading

Study Finds Illness, Medical Bills Cause Majority of U.S. Bankruptcies

(NaturalNews) – Unemployment is high and retirement accounts have virtually disappeared for many folks in the wake of the current recession. Housing prices have plummeted, too. So it comes as no surprise that data just released by the Administrative Office of the U.S. Courts shows the total number of U.S. bankruptcies filed during the first three months of 2009 increased 34.5 percent over the same period in 2008. Continue reading

The Death of the Dollar?

First, let me start with a few basic economic terms to get everyone on the same page:

inflation: a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency Continue reading

Hyperinflation

Inflation is a sustained increase in the aggregate price level. Hyperinflation is very high inflation. Although the threshold is arbitrary, economists generally reserve the term “hyperinflation” to describe episodes when the monthly inflation rate is greater than 50 percent. At a monthly rate of 50 percent, an item that cost $1 on January 1 would cost $130 on January 1 of the following year. Continue reading

MSM: Stiglitz Says White House Ties to Wall Street Doom Bank Rescue

(Bloomberg) – The Obama administration’s bank- rescue efforts will probably fail because the programs have been designed to help Wall Street rather than create a viable financial system, Nobel Prize-winning economist Joseph Stiglitz said. Continue reading

MSM: US economy goes back to 1955 as deflation returns

The notion that inflation will pick up in the near-term is completely out of the picture,’ said one analyst Continue reading

Video: Lindsey Williams on ‘The InfoWarrior’ with Jason Bermas

Jason welcomes Lindsey Williams, the economic analyst who accurately predicted both the recent rise and fall in oil prices. – “Super Hyper Inflation Coming Soon” – April 10, 2009 Continue reading

MSM: Home Prices in 20 U.S. Cities Fell by a Record 19% (Update2)

(Bloomberg) – Home prices in 20 U.S. cities fell 19 percent in January from a year earlier, the fastest drop on record, as demand plummeted and foreclosures rose. Continue reading

MSM: Chavez sends army to rice plants

“I have ordered the immediate intervention in all those sectors of agro-industry, intervention by the revolutionary government,” he said.

“This government is here to protect the people, not the bourgeoisie or the rich.” Continue reading

MSM: Iran threatened with economic meltdown

The sharp downward spiral of oil prices has prompted economists to predict that Tehran is facing severe financial hardship within the space of a few months. Continue reading

Big Pharma Quietly Hikes Drug Prices 100 Percent or More

Without any fanfare, pharmaceutical companies have been raising the prices of many of their drugs by 100 percent or more, according to a study conducted by researchers from the University of Minnesota. Continue reading

MSM: Inflation – Brace yourself for higher food prices

The Telegraph’s measure of “real” inflation, the Real Cost of Living Index, is at minus 3.4pc. But the era of cheap food could be over within a decade. Continue reading