Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Thurs 04.30.2009
Congress OKs $3.6 trillion Obama budget Plan lacks Republican support Congress signed off on President Obama's $3.6 trillion budget largely along party lines Wednesday night, handing him a legislative victory that paves the way for a health care overhaul. The Senate cleared the plan by a vote of 53 to 43 after the House passed it 223 to 193. Not a single Republican in either chamber voted for the measure. Democratic defections included Sens. Evan Bayh of Indiana, Robert C. Byrd of West Virginia, Ben Nelson of Nebraska and Pennsylvania's former Republican Sen. Arlen Specter, all of whom joined 17 House Democrats in voting no.
Fed Is Said to Seek Capital for at Least Six Banks At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said. While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said. The Federal Reserve is now hearing appeals from banks, including Citigroup Inc. and Bank of America Corp., that regulators have determined need more of a cushion against losses, they added.
Beijing has 1,054 tonnes of gold now! Even when the world has been struggling to cope with the recession and its cascading effects, China has been secretly booking profits. If you have any doubt about the Communist nation’s ability to secretly convert adverse situations to its benefit, just check the data released by State Administration of Foreign Exchange (SAFE). In a recent announcement, SAFE said China has earned $82.5 billion from nearly $2 trillion in foreign exchange reserves last year, and is now the fifth largest holder of gold.
Special Alert - Stand Down In October 2007, just two days after the DJIA made its all-time high, I issued a newsletter entitled “Man Your Battle Stations.” Despite being known for having written two similar dire forecasts in August 1987 and January 2000, this one was clearly the most bearish. It literally said to sell everything except investments related to precious metals and to even short the stock market. I spoke of tremendous social, political (and geopolitical), economic and spiritual upheaval to come. This dire forecast led to BNN having me on to discuss this forecast.
2009 Silver Eagle Bullion Coins Scorching Hot Sales of 2009 Silver Eagle Bullion Coins are blistering hot, with an incredible record-breaking pace of 9.64 million sold through Monday, April 27, according to the latest US Mint sales stats. More silver eagles have been sold during February, March and even an unfinished April than any corresponding month since the American Eagle series was launched in 1986. What happened in January 2009? It was a great month for the eagles as well, coming in second place behind the record sales in January 2008.
How Government Guaranteed Bank Debt May CRUSH Public Borrowing It's no secret the the federal government's need to borrow has sky-rocketed. Thanks to the various bailouts and stimulus measures, expenditures by the feds have increased by one third and are likely to grow even higher. Meanwhile, the economic slowdown has decreased the amount the government collects in taxes. The only way to bridge the gap is more borrowing. While many are confident that the global appetite for the sovereign debt of the United States will remain robust, some of the government's own programs may start to diminish that appetite. The government's guarantees of various kinds of debt issued by financial institutions essentially makes some bonds issued by banks as "risk free" as Treasuries. But these bonds pay higher yields than government debt, which should make them more attractive for risk-adverse investors looking to maximize their returns on investment.
Dollar to Decline as 10-Year Yields Rise: Technical Analysis The dollar will probably decline should 10-year Treasury note yields rise “decisively” above 3.06 percent, Citigroup Inc. said in a report citing trading patterns. The greenback strengthened in 1993 against the currencies that went on to form the euro as U.S. 10-year notes rallied, technical analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote today in a note to clients. The U.S. currency erased most of its gains as yields climbed in 1994, they said. “If this were the correct picture then one would expect significant renewed dollar weakness,” the analysts wrote. Buying the dollar and Treasuries was “the trade of choice” toward the end of 2008 and “is now unraveling,” they said.
U.S. Economy: GDP Shrinks in Worst Slump in 50 Years he U.S. economy plunged again in the first quarter, making this the worst recession in at least half a century. Gross domestic product dropped at a 6.1 percent annual pace, weaker than forecast, after contracting at a 6.3 percent rate in the last three months of 2008, the Commerce Department said today in Washington. The report, which reflected a record slump in inventories and further declines in housing, came hours before Federal Reserve officials said the economy continued to contract at a “somewhat slower” pace.
Niall Ferguson How bad the crisis could get Harvard historian Niall Ferguson in an interview about the severity of the global economic Crises. Will China save the United States or will they decide to concentrate on themselves? Protectionism could lead to a global meltdown
Geithner's Ridiculous Public-Private Crap Asset Partnership Plan Is Not Dead Yet Here's the official presser on the P-PIP: The Treasury Department today announced the receipt of more than 100 unique applications from potential fund managers interested in participating in the Legacy Securities portion of the Public Private Investment Program (PPIP). A variety of institutions applied, including traditional fixed income, real estate, and alternative asset managers. Successful applicants must demonstrate a capacity to raise private capital and manage funds in a manner consistent with Treasury's goal of protecting taxpayers. Treasury will also evaluate the applicant's depth of experience investing in eligible assets. Finally, the applicant must be headquartered in the United States.
Banks Urge Senate to Reject Mortgage Relief Bill A dozen financial groups, including the U.S. Chamber of Commerce and American Bankers Association, on Wednesday urged every member of the U.S. Senate to reject a key piece of President Barack Obama's plan to keep tens of thousands of Americans from losing their homes. The letter to senators was the latest push by an industry that has helped stall the proposal, which would have let debt-ridden homeowners reduce their payments in bankruptcy court. The Senate was expected to defeat the measure on Thursday. The plan faces nearly unanimous opposition by Republicans and even some Democrats who say they share industry's concerns that the forced easing, or "cram-down" of mortgage terms would ultimately drive up interest rates and further freeze credit lines.
Donald Luskin: Gold and the Upside-Down Bell Curve I regard gold as substitute money. So when you ask, "What's gold worth?" to me, what you're really asking is "What is the expected value of money?" If the financial crisis deepens and the world's demand to hold safe-haven balances increases sharply again back to the levels of panic that we saw last October, November, December, then the world will be plunged into a monetary deflation; deflation defined as extreme appetite for money as opposed to any asset or any thing - a desire for the complete safety of money. So when the demand for money completely outstrips the supply of money, you get deflation. In that kind of world, even gold isn't a safe haven; the only thing that would do is liquid money.
Do Treasury Bond Sales Influence Currency Markets? This week, the Treasury is auctioning 101B worth of 2, 5, and 7 year notes. They sold 40B 2 year notes Monday at a yield of .00949%. Yesterday they sold a record 35B 5 year notes and today they will offer 26B of 7 year notes. Next week they continue with an estimated 73B of 3,10 and 30 year bonds. The total amount borrowed during the quarter ending March 31st was 481B. During the current quarter ending June 30th, it is estimated they will borrow 515B dollars. Thus it can be implied from the massive current quarter’s needs that tax receipts have shrunk dramatically because of the recession. If total borrowing as estimated by some is at three trillion that means the 4th quarter borrowing by the Treasury will be huge. Where will all this money come from?
U.S. economy tumbles steeply in first quarter The U.S. economy shrank by a surprisingly steep 6.1 percent in the first quarter, hit by a record plunge in business inventories and sinking exports, but investors read signs of recovery in the report. The economy remained on track to emerge from recession in the second half of the year, analysts said, pointing to the run down in inventories that helped boost U.S. stock prices.
Perot Fund Turned Billions Into ‘Zero,’ Investor Says The family trust of billionaire and former presidential candidate H. Ross Perot was accused in a lawsuit of mismanaging a fund open to outsiders so that it went from $2.5 billion to “less than zero.” Southern Avenue Partners LP, which sued the Perot Family Trust and related entities, said Bermuda-based Parkcentral Global Hub Ltd. lost more than $3 billion while falsely claiming it was hedged against such losses. Southern Avenue wants to expand the suit to represent all the investors as a class.
Liar, Liar: Ken Lewis Changes His Story On Merrill Lynch Deal Remember the brouhaha last week over Ken Lewis's testimony to New York attorney general Andrew Cuomo about the government forcing his hand to close the acquisition of Merrill Lynch without disclosing losses to Bank of America's shareholders? It was the confession that launched a thousand inquiries into whether Hank Paulson or Ben Bernanke was behind the government's threat to remove Lewis if he backed away from the deal and whether Lewis should have resigned in protest rather than sacrifice shareholder interests to regulators demands.
Lewis out as Bank of America chairman, remains CEO Lewis loses post as Bank of America chairman after shareholder vote; remains CEO Ken Lewis was ousted as chairman of Bank of America Wednesday after shareholders angry about the company's acquisition of Merrill Lynch voted to separate the job from that of chief executive. Lewis will remain the CEO of the bank, but board member Walter E. Massey, president emeritus of Morehouse College in Atlanta, will become Bank of America Corp.'s chairman.
Obama vows great `vigilance' as swine flu spreads Obama vows `great vigilance' for swine flu as it takes first life in US, won't close border President Barack Obama pledged "great vigilance" in confronting the swine flu outbreak Wednesday night as it spread coast to coast across the U.S. The outbreak hit 11 states and closed schools amid confirmation of the first U.S. death -- a Mexican toddler who visited Texas with his family -- and the confinement of dozens of Marines after one came down with the disease in California. Some 100 schools were closed, and more might need to be shut down temporarily, Obama said, declaring, "This is obviously a very serious situation." The total confirmed cases in the U.S. rose to nearly 100, with many more suspected.
Chrysler Bankruptcy Looms as Deal on Debt Falters Last-minute efforts by the Treasury Department to win over recalcitrant Chrysler debtholders failed Wednesday night, setting up a near-certain bankruptcy filing by the American automaker, according to people briefed on the talks. Barring an agreement, which looked increasingly difficult, Chrysler was expected to seek Chapter 11 protection on Thursday, most likely in New York, these people said.
Will GM soon stand for ‘Government Motors?’ Restructuring plan calls for government to gain majority ownership If the government takes a majority stake in General Motors, will it end up taking the wheel, too? Under a restructuring plan put forth this week by GM, the ailing automaker would give majority ownership to the federal government to stave off bankruptcy. That handoff would amount to an extraordinary partial nationalization of the maker of Buicks, Cadillacs and Chevys that has been an independent company since 1908.
GM Bondholders Said to Plan Counteroffer to Take Majority Stake General Motors Corp.’s bondholders plan to present a counteroffer to President Barack Obama’s auto task force in Washington tomorrow that would give them control of the carmaker, according to a person familiar with the committee representing creditors. The bondholder committee plans to reject GM’s April 27 debt exchange offer that asked them to swap all their claims for a 10 percent stake in the reorganized automaker, said the person, who declined to be identified because the negotiations are private.
As Detroit Is Remade, the U.A.W. Stands to Gain In the devastating slump that has forced two of Detroit’s automakers to the brink of bankruptcy, the United Automobile Workers union stands to become one of the industry’s few winners. According to restructuring plans proposed this week, the union will have more than half the stock in Chrysler and a third of General Motors, meaning it will have tremendous influence, with the government, in determining the future of the companies. The United Automobile Workers union said Wednesday that its members ratified a cost-cutting deal with Chrysler by a 4-to-1 margin.
Boeing Presses Congress to Order More of Its Planes The Boeing Company, which was hit harder by the Obama administration’s spending cuts than any other defense contractor, is pushing Congress to increase its orders for planes and fighter jets by $3 billion, industry officials said Wednesday. Boeing is trying to get more orders for C-17 cargo planes and F/A-18 fighter jets added to a supplemental war-funding bill, officials said. They said Boeing’s lobbyists contend that building the extra planes would help preserve the military’s industrial base. Several analysts said they were likely to prevail because members of Congress are seeking to preserve thousands of jobs in their districts.
U.S. lawmaker sees credit card law in May President Barack Obama will sign wide-ranging, pro-consumer credit card reforms into law by late May, senior U.S. House Democrat Carolyn Maloney predicted on Wednesday. "President Obama seems very determined," Maloney, who met with Obama on Tuesday at the White House, told the Reuters Global Financial Regulation Summit in Washington. "He said, 'We're going to get that bill. We're going to enact it into law'."
Donors demand refund from Specter Political switch gets expensive as lawmaker's support shrinks Sen. Arlen Specter's switch to the Democratic Party is prompting his campaign donors large and small to demand their money back, including several Republican senators whose political action committees gave tens of thousands of dollars to the Pennsylvania lawmaker. Sen. Johnny Isakson didn't waste any time putting himself at the front of the refund line. The Georgia Republican asked Mr. Specter for a return of his leadership political action committee's $5,000 contribution Tuesday on the Senate floor - just hours after Mr. Specter announced he was changing his political stripes.
U.S. House passes "hate crime" bill that Bush opposed The Democratic-led U.S. House of Representatives Wednesday approved an expansion of federal "hate crime" laws -- an effort that former Republican President George W. Bush had opposed. On a vote of 249-175, the House passed and sent to the Senate a bill backed by the new Democratic White House to broaden such laws by classifying as "hate crimes" those attacks based on a victim's sexual orientation, gender identity or mental or physical disability.
American Express Cutting Clients Like Crazy American Express' risk-cutting poses its own risks What does AmEx want? That's a question American Express cardholders are asking more and more these days as the company turns the screws on long-standing customers and seems determined to show as many as possible the door. Similar moves by leading card issuers drew a scornful response from President Obama, who told industry leaders last week that "the days of any-time, any-reason rate hikes and late-fee traps have to end."
More than 100 U.S. schools closed because of swine flu At least 74 schools have closed across the country because of confirmed or probable cases of swine flu and 30 more have closed as a precautionary measure, the Department of Education said Wednesday. The elementary, junior high and high schools have closed because of the H1N1 virus, Department of Education spokesman Massie Ritsch said.
World Health Organization Raises Swine Flu Alert Level The global spread of swine flu, a pandemic, is highly likely, the World Health Organization said on Wednesday and raised its alert level to Phase 5, the next-to-highest level in the worldwide warning system. Phase 5 had never been declared since the warning system was introduced in 2005 in response to the avian influenza crisis. Phase 6 means a pandemic is under way.
Climate Talks for New Treaty Will Be Tough President Barack Obama’s chief climate negotiator said talks for a new treaty to combat global warming will be “extremely difficult” as nations grapple with how far emerging economies such as China should go to curb greenhouse-gas emissions. It’s “not going to be easy to reach an agreement,” Todd Stern, Obama’s special envoy for climate change, said yesterday at the conclusion of a two-day meeting in Washington of the world’s biggest emitters of carbon-dioxide pollution, a greenhouse gas blamed for rising temperatures and sea levels.
The Rise And Fall Of AIG's Financial Products Unit As we delve into the back-story behind the collapse of AIG, we thought it might be useful to lay out some key factual information about the firm's Financial Products unit, known as AIGFP, whose disastrous credit default swaps brought the company to its knees. How and when did AIG Financial Products get started? Who ran it, and from where? How did it get into credit default swaps, and what exactly are they, anyway? And how did this group of derivatives traders eventually wind up bringing down one of the most admired financial firms in the world?
AIG keeps key Paris employee, avoids possible default American International Group Inc said a key French employee will stay at the company, staving off the risk that his departure would leave the insurer in default on billions of dollars of insurance contracts. James Shephard has agreed to serve as chief executive of Banque AIG, with overall responsibility for the bank, AIG spokesman Mark Herr said. The Wall Street Journal reported that Shephard's departure could have triggered an AIG default on $234 billion of derivatives contracts.
American Statement of Grievance on Government & Judiciary (Part 2) Once the rights of the individual were treated as almost sovereign and respected above all else, as it was written into our Constitution. But now, after decades of individual liberty erosion, the rights of the collective are now considered superior, and are ceded a deference above those of any one person. This tendency, repeated many times over the years in controlling legal precedent, has slowly teased our society into a socialist mindset, spirit and practice. This quiescent tendency of belief is now normal and accepted, and it is the presumption and acceptance that all individual rights are only provisional, and are only granted solely at the discretion and benevolence of our governmental leaders. 3 We assert that without correction, this trend will lend itself to a slippery slope. As one set of injustices wrought becomes convention, it will become implicit foundation for the next set.
Obama Sows Seeds of Own Demise When the Obama administration crashes and burns, with approval ratings that fall through the floor, political scientists can trace its demise to its first hundred days. Although Americans are careful not to consign a presidency they desperately need to succeed to the dustbin of history, the fact is that this president has moved - on issue after issue - in precisely the opposite direction of what the people want him to do.
Europe's age crisis begins to bite The EU's working age population will peak next year before tipping into decline for half a century This will cause a relentless rise in pension and health costs that risk asphyxiating the region's economy. A new report by the European Commission said this financial crisis could turn into a "permanent shock to growth" from which Europe never fully recovers unless it moves fast to bring its public debts under control. The main danger is a "Lost Decade" akin to Japan's deflation slump, with economies contracting by 0.9pc into the middle of the next decade, but there is also a risk of a deeper downward spiral.
Don’t Know Much About Capitalism After eight years of watching conservatives blow trillions of dollars and comport themselves like anti-intellectual, jingoistic blockheads, I found myself ashamed to admit that the Left seemed to have all the genuine intellectuals - people who seemed to possess real curiosity, who refused to accept whatever official line the government was shelling out, and who sought genuine understanding instead of name-calling and pointless vitriol. With the Left now in power, though, they’ve by and large reverted to form. The very same people who just a year ago prided themselves on evaluating every Pentagon press release with an air of suspicion and hostility now accept without cavil whatever the Federal Reserve chairman or the Treasury secretary tell them. They’ll believe whatever economic superstition, no matter how transparently ludicrous, that happens to be in fashion. Whatever happened to “Question Authority”?
Blueprint (or blue plate special) for 'change'? Fabian Socialism & world government
Barack Obama: The Mendacity of Hope, Pt. I President Barack Obama's Brain Trust appears to be composed of recycled Washington insiders from previous administrations. Obama's Cabinet: Change? Obama voters wanted change. During the election, Obama supporters made it clear that "change" not only meant a different party occupying the White House and a different direction for American foreign and domestic policy, but—by choosing Obama over Clinton in the primaries—they expressed their desire for a Washington outsider. It might be instructive to take a look at the people with whom Obama has surrounded himself:
Barack Obama: The Mendacity of Hope, Pt. II Barack Obama's foreign policy posture is reminiscent of a previous president: George W. Bush In 2008, then-Senator Obama was pushed to the forefront of the passel of potential Democratic nominees due in no small part to his apparent status as the peace candidate. During the presidential campaign, Obama constantly reminded supporters of his 16 month plan for withdrawal from Iraq—except when he claimed to have an eleven and a half month plan. I clearly recall warning my liberal friends and family members that they were very likely going to be sorely disappointed with Obama.
UN Agenda 21 Sustainable Development
****** Important ! ******* Barack Obama, Fabian Socialist Who needs Molotov when we've got Alinski? Barack Obama is a Fabian socialist. I should know; I was raised by one. My Grandfather worked as a union machinist for Ingersoll Rand during the day. In the evenings he tended bar and read books. After his funeral, I went back home and started working my way through his library, starting with T.W. Arnold's The Folklore of Capitalism. This was my introduction to the Fabian socialists. Fabians believed in gradual nationalization of the economy through manipulation of the democratic process. Breaking away from the violent revolutionary socialists of their day, they thought that the only real way to effect "fundamental change" and "social justice" was through a mass movement of the working classes presided over by intellectual and cultural elites.
Obama on Track For Agenda 21
A Fabian Socialist Dream Come True The gradual revolution of the Fabian Socialists is quickly becoming a reality in America. The Fabian Society began in England in 1887 by a very small group of elitist socialist that sought to reform society gradually into one of socialism instead of through violent revolution. At first their purpose was to be an alternative in Britain for the more dominate Marxist Social-Democratic Federation, but their true goal was to accomplish socialism through a very gradual process using the voting booth and representative democracy as their instrument of change. In fact, one of their symbols is a Turtle with the motto: "When I Strike, I Strike Hard". Another symbol is the Wolf in Sheep's Clothing and the Globe on an Anvil being hammered into the Fabian model.
The World Rearms - Except for America The day is coming when Washington will have more military challenges to handle than just Afghanistan. Often, it takes an economic crisis to reveal where a country’s national priorities really lie. With this in mind, it is sobering to note that all of the world’s major power blocs are using this time of financial hardship to increase their military spending - except for the United States.
North Korea threatens nuclear and missile tests Isolated country raises stakes in worsening standoff over atomic program North Korea threatened Wednesday to conduct nuclear and missile tests and start an uranium-enrichment program in addition to its existing plutonium-based one, unless the U.N. apologizes for criticizing its recent rocket launch, dramatically raising its stake in the worsening standoff over its atomic programs. Pyongyang's Foreign Ministry said in a statement the country "will be compelled to take additional self-defensive measures" unless the U.N. Security Council apologizes immediately. "The measures will include nuclear tests and test-firings of intercontinental ballistic missiles."
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (1/6)
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (2/6)
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (3/6)
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (4/6)
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (5/6)
Freedom Watch 4/29/2009 Guests Ron Paul, Peter Schiff, Daniel Hannan, Lew Rockwell (6/6)
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