Monday, November 30, 2009

Sanders on Bernanke/Guide to Bernanke’s Preemptive

Sander's discussing Bernanke hopefully more will follow and vote against him. I also have an excellent piece below you will want to read in full. He has certainly failed to meet the mandate look how long the Feds say it will be for jobs to return for example. Will there be A Run On The Dollar Soon? By the way Hussman 80%chance of stock market crash HERE. Please tell your Senator to vote NO on Bernanke HERE.

Here is a snippet from A Reader’s Guide to Bernanke’s Preemptive Attack...

Odd that people would be upset, eh? Just because many of us have had our dreams of retirement destroyed and our very survival menaced by these monetary rulers of the universe. We need to take a more balanced view: even if you and I have been nearly wiped out, the kingpins at Goldman Sachs and Bank of America are doing very well.

People who bought credit default swaps from AIG got their money, didn’t they (actually our money, but that’s only a detail)? So all in all, the country is in pretty good shape, on the average.“The government’s actions to avoid financial collapse last fall — as distasteful and unfair as some undoubtedly were — were unfortunately necessary to prevent a global economic catastrophe that could have rivaled the Great Depression in length and severity, with profound consequences for our economy and society,” he wrote.

Yes, it is distasteful when we little folks have to take a financial beating so that the rich and well-connected can flourish; we do tend to get a bitter taste in our mouths. But, then, we certainly don’t want another Great Depression, do we? But wait a minute. How does Bernanke know that if, say, the governmentand the Fed had not taken the slew of outrageous measures they have taken in the past fifteen months, another Great Depression would have occurred? I have a Ph.D. in economics, same as Bernanke, and I’ve been a professional economic historian of the United States for more than forty years, and I don’t know this thing he claims to know. Does he have a pipeline to God? (A more reasonable hypothesis is that he is God’s agent on earth, put here to punish us for our sins.) This constant reference to an impending Great Depression makes for excellent politics of fear, but where’s the theoretical and historical meat? My best guess is that had the government refrained from all of its extraordinary interventions of the past year or so, the worst of the adjustments would already have been made, and a genuine recovery would now be in progress.

Instead, thanks to Bernanke and Co., we may never see a flourishing economy in this country again. Argentina and other countries have been ruined by a great deal less meddling.But the Fed chairman says that, while reforms are needed, “we should be seeking to preserve, not degrade, the institution’s ability to foster financial stability and to promote economic recovery without inflation.”Ditto my earlier comments on stability.Read the rest in full HERE.

Saturday, November 28, 2009

Thre Great Depression 1920 case for it today!

Zero Hedge has an article...

The Case for Depression: Dollar Collapse

You can read it in full HERE. Below is a speech from Thomas Woods and it will show you how everything Obama and the Fed are doing today will lead to the conclusion in The Case for Depression: Dollar Collapse. No wonder they do not want you to know about 1920!

U.S. Banking Surveillance Swift to move to Switzerland

By the way it is the Anniversary of George Orwell's 1984. The Swift Data server is being moved to Switzerland.I have my own concerns as an American for example will our government be able to spy on us more then limits allow without repercussion? I know they are already listening more then legally allowed. They can enter your home without a search warrant. They have a secret plan to harvest information of Twitter, You Tube, Face Book users and here is a warning about the Internet surveillance. Not to mention Obama wants the Computer Privacy Ruling overturned

Now comes this new information from Brussels Blogger where personal banking information can be transmitted outside of the United States begging the question if it is outside the U.S. is it outside of following the laws established for prosecution if they are found to be doing more like they are already i.e, listening to your phone conversations? How safe will your information be once this is in place? Note it may include other personal info.

Why is the SWIFT deal dangerous?

The move of SWIFT the data server to Switzerland would be an excellent opportunity to stop the nearly unlimited access of US authorities on EU bank transactions. But EU justice and interior minister are apparently keen agree a deal as soon as possible, on 30 November. Why 30 November?

Because one day later, on 1 December 2009, the EU’s Lisbon Treaty will be in force and would allow the European Parliament to play a major role in the negotiations of the deal with the USA. A deal one day before will be a slap in the face of democracy in the EU.

SWIFT handles 15 mio bank transactions daily for more than 9000 banks worldwide. Nearly every transnational bank transaction within the EU is recorded in the SWIFT data centers, including amount, sender, recipient, and transaction comments. The agreement will even allow to transmit “other personal data”.

This will allow US authorities to establish a huge data mining database, allowing to query every substantial business link within the EU. No question that the United States will never admit that openly. But data protection agreements should not be based on hope but on principles. The current draft is based on hope.

Is there no opposition to the deal?

When German media reported about the deal about 2 weeks ago some opposition to the deal was raised. Germany, France and Austria seem to had important data protection concerns. Finally it was reported that Germany would even block the deal. Two weeks later all the opposition apparently has disappeared and Germany will now abstain from the vote on Monday, paving the way for the agreement coming into force.
MEPs in the European Parliament have raised concerns as well, but if the deal is agreed before 1st December, there will be no way for them to have a say.

No reciprocity

The most suprising fact related to the EU negotiations with the US is the missing demand of reciprocity. In other words: while the US will be able to access EU banking data no access to US banking data by EU auhtoirties is being foreseen.

Open questions

It is unclear to me what exact legal form the agreement with the United States will have. To my knowledge it will probably not require any ratification by national parliaments. It needs to be seen whether procedures against the deal will be able to be launched at the European Court of Justice. They could potentially be based on the EU’s current, rather strict data protection legislation.


Related articles


Friday, November 27, 2009

Howard Dean admits Obamacare is trillion dollar, no reform, harmful bailout

This is from the Bill Press show.  In it he admits to the real cost and even says he agrees with the Republicans but the cost is ok with him as long as they include a public option.

DEAN: There is something worse than passing no bill. This bill isn’t very strong. In fact, the only piece of reform left in it is the public option. The insurance reform is gone, essentially, because what they did is they have guaranteed issue — they have to, er, the insurance company has to ensure you — the problem is they don’t have community rating any more. They, they, they, the Senate bill, I think, charges three or four times as much for sick people as they do for healthy people, and the House bill is twice as much. …

DEAN: You know, we did this ten or fifteen years ago in Vermont, and you can charge 20% more for your most expensive clients as you can for your cheapest clients, and that’s it. Now if you can afford to buy health insurance if it’s 20% above the bottom price, but you can’t afford to buy health insurance if it’s twice as much or three times as much, so guaranteed issue doesn’t do you any good unless you have real community rating. Real community rating doesn’t exist in either the House or the Senate bill, so the old argument, which I used to make, was that we ought to pass this thing just to get the insurance reform. There isn’t any insurance reform left in this bill to speak of. …

DEAN: You know, what this is is a giant bail-out. This is a bail-out that makes AIG look cheap. Sixty billion dollars a year go to the insurance companies under this bill. Now if we can get a public option, I think that’s OK, but if you don’t have a public option, why would you want to stick the taxpayers with yet another bail-out? They bailed out the banks, they bailed out AIG. This is a trillion-dollar bailout. …

DEAN: I would vote with Bernie Sanders. I would vote to kill this bill if it does not have a public option, because that is doing harm to the nation. It’s not just, “Well, there’s some of this” 

PRESS: Yeah.

DEAN: This is a harmful bill to the nation without a public option, because it’s going to take trillions of dollars, billions, well, trillions over several decades from our kids. The Republicans are right about the rhetoric of the bill. But if you get reform, you can fix it. If you don’t get reform, you got the system that we have today, you are gradually going to start uninsuring people, because we are not going to be able to maintain this system. This system does nothing to control costs.

Thursday, November 26, 2009

Propaganda Push Fed Goes to The Movies

Propaganda - In the UK they have re-introduced an old war time slogan Keep Calm and Carry On.

.In America the Fed will be showing up at the movies!  Not to ease your angst over job losses the rise in your credit card rates or the inflation they claim we don't have but to sway public opinion. If they can sway you they can continue to keep their dealings secret and ease the pressure on Obama who wants to give them greater power.  Note one wonders if this press release was sent out by the Fed as you will see it claims the Obama administration is trying to place restrictions on them and nothing could be further from the truth.

Coming soon to a theater near you -- credit-card advice from the Federal Reserve.
Not exactly five-star material, but the Fed will run 45-second advertisements in 12 movie theaters in major metropolitan areas starting Friday through Dec. 3.
The AMC Studio 30 complex in Olathe is among the theaters scheduled to run the spots, said Tim Todd, a spokesman for the Federal Reserve Bank of Kansas City.
Todd said Wednesday the Fed will likely add other area locations in December.
This is not the Fed's first foray into theater ads. Earlier this year, the Fed sponsored ads that provided tips and information for avoiding mortgage foreclosures.
The new spots will encourage consumers to “use their credit cards wisely” during the holiday shopping season.
“The ads provide tips for getting the most from credit cards, including paying on time, staying below the card’s credit limit, avoiding unnecessary fees, paying more than the minimum payment and watching for changes in account terms,” the Fed said in a statement.
The Fed is trying to step up its consumer protection role after the Obama administration and some lawmakers proposed legislation that would strip the central bank of that responsibility and give it to a newly created Consumer Financial Protection Agency.

Will Friday be Black for U.S. Stock Market? (Dubai Fallout)

Stocks went into shock all around the world today except here because most of the markets were closed for Thanksgiving. I am just wondering how bad it will be here tomorrow. Dubai was a horror story that those who invested in it and promoted it overlooked.  They over looked the slave labor they over looked basic principles when investing in it.  Karma?

You have to wonder who knew in advance? With gold suppression being a public policy and the Fed no doubt having a bit of anxiety over China's concern about the losses they are taking by holding so much of our debt seems odd this news was not released until late Wednesday.

" China’s foreign-exchange reserves face a “triple whammy” as inflation, oversupply and the “inevitable” decline of the dollar threaten to erode the value of its holdings of U.S. Treasuries, said Yu Yongding, a former adviser to the Chinese central bank."

Late Thursday, the dollar had rebounded after suffering steep losses in Asia as concerns about a debt crisis in Dubai sent investors flocking to the greenback as a safe haven. When it did start to slide Thailand, Singapore and South Korea all appeared to sell their currencies Thursday according to the WSJ

It also prompted concerns in Japan. Fujii, 77, said yesterday that the dollar’s weakness is spurring the yen’s advance. Today he said “a strong U.S. dollar is in their national interest. There is no change in our support for that.”

“There’s no doubt the market has moved too far in one direction,” Mr. Fujii said. “Moves right now are extreme, and it would be possible to take appropriate measures.”

Although he did not explicitly say that the government might intervene in the foreign exchange markets — by buying dollars for yen — such comments are often interpreted as “verbal intervention,” in which comments from top policy makers can swing market expectations and thus influence currency levels.

By mid-morning in Tokyo, the dollar gained somewhat, to 85.90 yen

China wants out but not by taking a huge hit still they are buying Gold. Investor's Buy Gold they know the Central Banks are on course to crash the World's Economy. Now we will have to see how it all plays out tomorrow.

Wednesday, November 25, 2009

Parody Office Depot Day Laborers

It would be hilarious if it were not true!

Porter Standsberry - The bankruptcy of the United States is now certain

According to 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?

How did we end up with so much short-term debt? Like most entities that have far too much debt - whether subprime borrowers, GM, Fannie, or GE - the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss." What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt… at ever shorter durations… at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.

When governments go bankrupt it's called "a default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists - Alan Greenspan and Pablo Guidotti - published the secret formula in a 1999 academic paper. That's why the formula is called the Greenspan-Guidotti rule. The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."

The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.

So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default. The U.S. holds gold, oil, and foreign currency in reserve. The U.S. has 8,133.5 metric tonnes of gold (it is the world's largest holder). That's 16,267,000 pounds. At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that's around $500 billion of reserves. Our short-term foreign debts are far bigger.

According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months - an amount far larger than our reserves.

Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.

So… where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40% of GDP. Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or the Russian central bank, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.

So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.

One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea, and Chile. These are the three largest central banks that own the least amount of gold. None own even 1% of their total reserves in gold.

Thanks to the Obama Administration and the Federal Reserve I might add!

Bloomberg Study Shows Mans Hands In Making H1N1 VIRUS!

Very Interesting more follows this Bloomberg article.
Nov. 24 (Bloomberg) -- Adrian Gibbs, the virologist who said in May that swine flu may have escaped from a laboratory, published his findings today, renewing discussion about the origins of the pandemic virus.
The new H1N1 strain, which was discovered in Mexico and the U.S. in April, may be the product of three strains from three continents that swapped genes in a lab or a vaccine-making plant, Gibbs, and fellow Australian scientists wrote in Virology Journal. The authors analyzed the genetic makeup of the virus and found its origin could be more simply explained by human involvement than a coincidence of nature.
Their study, published in a free, online journal reviewed by other scientists, follows debate among researchers six months ago, when Gibbs asked the World Health Organization to consider the hypothesis. After reviewing Gibbs’ initial three-page paper, WHO and other organizations concluded the pandemic strain was a naturally occurring virus and not laboratory-derived.
“It is important that the source of the new virus be found if we wish to avoid future pandemics rather than just trying to minimize the consequences after they have emerged,” Gibbs and colleagues John Armstrong and Jean Downie said in today’s eight- page study.
Gibbs and Armstrong are on the emeritus faculty at the Australian National University in Canberra and Downie is affiliated with the Centre for Infectious Diseases and Microbiology Laboratory Services at Sydney’s Westmead Hospital, according to the study.
While the exact source of the new H1N1 strain is a mystery, their research has “raised many new questions,” they said. The authors compared the genetic blueprints of flu strains stored in the free database Genbank and found the pandemic virus’s nearest ancestors circulate in pigs.
‘Simplest Explanation’
While migratory birds may have acted as conduit for their convergence, human involvement in bringing them together is “by far the simplest explanation,” Gibbs said in a telephone interview today.
Gibbs wrote or coauthored more than 250 scientific publications on viruses, mostly pertaining to the plant world, during his 39-year career at the Australian National University, according to biographical information on the university’s Web site.
“Knowing Adrian Gibbs, he will have thought through it pretty logically and come to that conclusion,” Lance Jennings, a clinical virologist with Canterbury Health Laboratories in Christchurch, New Zealand, said in a telephone interview. “It’s up to someone else to try and prove it or disprove it.” End of Bloomberg article.

I do know that biological materials were missing from an Army lab and who knows how much is really missing? I do know that a certain firm Chugai (page six) predicted over a 531% increase from the sale of Tamiflu last year before the flu hit. I would also point out that Liberal Elites met a short while back to discuss Depopulation. According to (I have not verified this ) another blogger...and here

" Obama has a long-term relationship with Baxter, and he has previously traded favors with them. Obama owns shares in Baxter a key company that has been approached by the WHO to make a vaccine for swine flu. Baxter, based in Chicago, also contributed significantly to Obama's election campaign."

Baxter is manufacturing the new drug and coincidentally Baxter "accidentally sent " the bird flu Virus to Europe by mistake. A journalist has filed murder charges against the WHO and BO's buddies at the UN and think about the following article maybe it already has!

Bioweapons could catch U.S. cities off guard,0,7526407.story