Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Tues 06.23.2009
International Bailout Brings Us Closer to Economic Collapse By: Dr. Ron Paul, U.S. Congressman Last week Congress passed the war supplemental appropriations bill. In an affront to all those who thought they voted for a peace candidate, the current president will be sending another $106 billion we don't have to continue the bloodshed in Afghanistan and Iraq, without a hint of a plan to bring our troops home. Many of my colleagues who voted with me as I opposed every war supplemental request under the previous administration seem to have changed their tune. I maintain that a vote to fund the war is a vote in favor of the war. Congress exercises its constitutional prerogatives through the power of the purse, and as long as Congress continues to enable these dangerous interventions abroad, there is no end in sight, that is until we face total economic collapse.
State of the Nation From 2005 to 2009, the U.S. debt has increased $14 trillion dollars, while GDP went up a bit less than $2 trillion. It now takes over $7 dollars of new debt to "create" $1 of GDP "growth". In 2006 the ratio was less than $5 dollars. Soon, it will be double that amount. This is not a good thing; nor is it sustainable. It is a path to bankruptcy, ruin, and utter despair. It is a national disgrace. A free people should not accept the unacceptable. The Declaration of Independence explains it very simply in straightforward language that covers ALL particulars. The government and Federal Reserve have committed about $12.8 trillion to restart the credit markets and end the longest economic slump since the 1930s. The bond market is responding accordingly - rates are rising and prices are falling. This is a thumbs down vote of no confidence to the Fed, as it should be.
The Verdict - Judge Napolitano on Obama's Plan Giving Unlimited power to the Federal Reserve
Buying Gold to Keep Up with Inflation . . . . For the time being, I am keen to accumulate gold. We may still be in a deflationary environment but the impending inflation from all the printed money is no laughing matter. As it is, we are damned if we store our cash under the mattress and damned if we don't. Think of inflation as a silent tax which eats away at our wealth which has been accumulated painstakingly from investments and savings. The same amount of money will purchase lesser goods in future. The Federal Reserve has lighted the fuse of hyperinflation with its intervention in the Treasury bonds market. While its Quantitative Easing through buying debt with printed money achieved a shock and awe effect in March, this weapon to control interest rates has become blunt after repeated use. Long term interest rates will find its own level according to supply and demand, not artificial intervention.
If uncertainty and fear continue, and chaos and rioting begin...
If stock markets languish or suffer another meltdown...
If the recovery spending of the world's governments proves futile...
If government interference in the economy continues to increase...
If the value of the U.S. dollar takes a major fall...
If world recovery from the current recession/depression takes years...
If you're still wondering whether you have enough "safe" money...
...would you feel you own enough gold?
GOLD THOUGHTS Perhaps we should establish an official day of mourning for the loss of independent thinking now so widespread among today's journalists. In the U.S., independent journalism has died. Most of the reporting media has now become the official apparatchik of the Obama Regime. With one national network moving into the White House for daily supervision, all pretense of independence has been lost. We can probably, given access to the internet, learn to survive the death of journalism as a profession. However, our wealth may not survive the loss of an independent central bank. Since Federal Reserve actions are somewhat greater than a butterfly in Africa flapping its wings, the rest of the world may need to worry about yet to come financial chaos.
Market Gold Action and Chinese Owned Treasuries It is long believed that the price of gold and silver has been manipulated, not only by the large bullion banks, but by some of the central banks with the full collusion of some governments. The number of articles concerning this very subject, complete with statistics, are too numerous to mention here. The one that stands out for me was the recent news out of Russia by their financial community complaining about the 'artificial' low price of gold, with more credence afforded GATA (Gold Anti Trust Action) by the Russians when they sent a high level official observer to a recent world wide GATA conference. Shortly after this event, Russia publicly issued a statement voicing their concerns about the ongoing manipulation of the price of gold.
Gold Falls as Inflation Concerns Wane on Deepening Global Slump Gold prices slid to a five-week low after the World Bank forecast a deeper contraction in the global economy this year, curbing the appeal of the metal as a hedge against inflation. Silver also dropped. The U.S. Dollar Index, a gauge of the greenback's value, against six currencies, rose as much as 0.8 percent after the Washington-based lender said the global recession will be deeper than it forecast in March, fanning demand for dollars as a refuge and curbing inflation worries. Crude oil slid for a second session. Some investors buy gold as an inflation hedge.
Gold Still Taking Direction from Currency Markets Gold: Gold steadied on Friday as the dollar index reversed earlier losses but it is still taking its direction from the currency markets. The dollar remains in a very tight range ahead of a Federal Reserve meeting next week. Furthermore, the lack of any sell-off in gold in the wake of the latest IMF gold sale would indicate that the effect of these sales is already factored into the price. The IMF also declared that it "should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies." Gold is currently trading at $931.
David Morgan explains why silver remains the 'people's metal' and why it may be a better investment than gold . . . . Throughout history, about 10 times as much silver has been mined than gold. In the 12th century to about the 17th century, silver was worth about one-tenth to one-twelfth the price of gold. During the time of Sir Isaac Newton, who put England back on a gold standard to recover from a horrible financial crisis, he was asked to determine the "correct" ratio of silver to gold and set it at 15.5 to 1. This I call the classic or monetary ratio, and that stood while most of the world was on the silver standard. Remember, the pound sterling was a defined weight of silver.
No Gold, No Bullets: Now It's Personal Facts have a different feel when they're personal. And speaking personally, evidence that Americans are seriously spooked is starting to pile up. In the past few months:
My father-in-law decided he wanted some gold, so I called a local coin store and asked Kevin, the shop's owner, to find us some Krugerrands. He predicted a few weeks for delivery, which seemed reasonable given the chatter about tight supplies, so I placed an order and wrote a big check. That was three months ago, and the coins still aren't in. I called Kevin the other day and found him both busy and frustrated. "I could make a million dollars this year if I could only get inventory," he said. "This would be a career year." He apologized for the long wait and said there were now only a few people ahead of us on the list.
30-Years of Inflation Coming, But "Deflation Scare" Not Over Yet, Cycle Maven Says Everyone is right to fret about inflation but the "deflation scare" isn't over yet, says Charles Nenner, founder of the Charles Nenner Research Center. Renowned for his cycle work, Nenner sees deflation remaining dominant until year-end and inflation not picking up for another 18 months. But that will be the start of a 30-year (yes, year) upcycle for inflation says Nenner, who spent 12 years as a market-timing consultant for Goldman Sachs. The investing implications of this scenario are clear:
Nenner is bullish on gold for the long-term and even more bullish on gold mining stocks, which he says are currently cheap relative to bullion.
After a secular decline, Treasury yields are set to rise, with Nenner predicting the 10-year yield will reach 5.50% by Spring 2013, a 45% rise from Friday's close of 3.78%.
The Deflating Bubble There is an epidemic of bankruptcies: Circuit City, Sharper Image, Goody's, Gottschalk's, Comp USA, Levitz Furniture, Chrysler, GM. Not to mention all the local businesses that don't make the news when they close up shop. And the rash of corporate bustouts is far from over according to consulting firm Bain & Company, who predicts nearly 100 large ($100 million or more in assets) corporate bankruptcies by next year. We're in a period of severe losses - a cluster of errors, as Murray Rothbard described it - with thirty-seven banks having failed already this year, and many more to come. But as gruesome as the economic news sounds, Rothbard explained that this is the recovery.
Dollapocalypticism Is the Greenback Toast? Dollar obituaries are nothing new. The currency has been presumed dead more times than Shane Macgowan. But like the lead singer of The Pogues, the greenback has somehow withstood repeated knocks and scrapes over the years and lived on, battered, bruised and a couple of teeth the lighter, to fight another day. In the 1970s and 1980s there were plenty predicting its demise, although at that point the main challenger was the Japanese yen. And in the years preceding this crisis, economists and investors including Peter Schiff and George Soros were lining up to declare the dollar's demise as the world's reserve currency. In the late 1990s, the creation of the euro gave dollar sceptics another stick to beat the currency with, and no doubt the European currency has claimed some of the prominence in its first decade.
Bernanke Must Reassure Market About Rate Strategy Chairman Ben S. Bernanke has to convince investors the Federal Reserve can take back more than $1 trillion it pumped into the U.S. banking system to pull the economy out of the longest decline in more than six decades. Bernanke and his colleagues, who meet June 23 and 24 to map monetary strategy, have said they need to continue buying assets and keep interest rates low for a long time to help revive growth. Rising Treasury bond yields show Wall Street is concerned their policy may lead to an inflationary bubble: Ten- year notes reached an eight-month high of 3.95 percent June 10.
Economist Roubini sees double dip recession There is a risk that advanced economies will suffer a double dip recession, leading economist Nouriel Roubini said on Monday. Roubini, who rose to prominence for predicting the global credit crisis, said he saw more signs of "yellow weeds" than the green shoots of economic recovery. "I see there is a risk of a relapse, or of a double dip recession," Roubini, who heads economics research firm RGE Global Monitor, told a conference on long-term investment.
The U.S. and the U.K. Will Both Default on Their Debt by the End of Summer As anticipated by LEAP/E2020 as early as October 2008, on the eve of summer 2009, the question of the US and UK capacity to finance their unbridled public deficits has become the central question of international debates, thus paving the way for these two countries to default on their debt by the end of this summer.
World Bank warns of social unrest The head of the World Bank has warned that the global economic crisis could lead to serious social upheaval. "If we do no take measures, there is a risk of a serious human and social crisis with very serious political implications," Robert Zoellick said. He pointed to Eastern Europe, which faces the "tricky situation" of fast-shrinking economies and protests. Mr Zoellick suggested governments should start preparing for high levels of unemployment.
World Bank sees deeper and longer slump World Bank urges continued government stimulus as private sector investment famine cripples recovery in developing countries The global recession will be deeper and longer than expected said the World Bank today which is forecasting a harsher downturn this year as the famine in private sector investment cripples recovery among developing countries. The world economy will shrink more aggressively this year, predicts the bank, contracting by 2.9 per cent, a much steeper decline than it predicted in March when the institution forecast a 1.7 per cent contraction. The recovery in 2010 will be weaker, an expansion of 2 per cent compared with its previous prediction of 2.3 per cent.
Some Common Fallacies About Inflation and Deflation: the Weimar Nightmare in Review There are several fallacies making the rounds of the economic community, often put forward by pundits on the infomercials for corporate America, and also on the internet among well-meaning but badly informed bloggers. The first of these monetary fallacies is that 'the output gap will prevent inflation.' The second is that a lack of net bank lending or other 'debt destruction' will require a deflationary outcome. Let's deal with the output gap theory first. Output gap is the economic measure of the difference between the actual output of an economy and the output it could achieve when it is most efficient, or at full capacity.
When Money Dies: The Nightmare of the Weimar Collapse WHEN a nation's money is no longer a source of security, and when inflation has become the concern of an entire people, it is natural to turn for information and guidance to the history of other societies who have already undergone this most tragic and upsetting of human experiences. Yet to survey the great array of literature of all kinds — economic, military, social, historic, political, and biographical — which deals with the fortunes of the defeated Central Powers after the First World War is to discover one particular shortage. Either the economic analyses of the times (for reasons best known to economists who sometimes tend to think that inflations are deliberate acts of fiscal policy) have ignored the human element, to say nothing in the case of the Weimar Republic and of post-revolutionary Austria of the military and political elements; or the historical accounts, though of impressive erudition and insight, have overlooked — or at least much underestimated — inflation as one of the most powerful engines of the upheavals which they narrate.
Part 1: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Sorry America, We Still Have No Clue What To Do About 'Too Big To Fail' More than a year after the Federal Reserve and the Treasury Department stepped in to prevent the bankruptcy of Bear Stearns, there's still no official policy to solving the too big to fail problem. Even worse, there don't seem to be very many serious proposals to restoring market processes, reducing moral hazard The Obama administration rolled out another description last week: "Tier 1 Financial Holding Companies." and ending the implied taxpayer guarantee of large, complex, systemically important financial firms. Barack Obama and Tim Geithner's regulatory overhaul last week falls short of doing anything serious. So far short, actually, that it's probably fair to say it falls short of doing anything at all about the problem.
Big Banks in Trouble: Huge Mortgage Write-Downs Seem Inevitable Are The Banks Paying Back TARP Money Too Soon? Since the beginning of the year, major banks have raised over $200 billion in capital, far in excess of the $75 billion of new capital that the government stress tests had called for. The market prices of major bank stocks have recovered dramatically since March, indicating that Wall Street investors see a recovery in the banking industry. In addition, the banking industry is enjoying one of the largest net interest margins in history due to a very low cost of funds. Wells Fargo (WFC), for example, in the fourth quarter saw its average cost of funds decline to 1.5% while its net interest margin exceeded 4%. With banks able to access cheap funding thanks to the super low rate money policy of the Federal Reserve, banks almost have a license to print money.
TRANSFER OF WEALTH There can be no doubt that the global economy is undergoing a massive transformation and we have now entered an era of 'Big Government'. After decades of excess credit and over-consumption, the developed world is finally being forced to deal with private-sector deleveraging. However, the governments seem to have other plans and they've decided to fight these deflationary forces tooth and nail. Their solution - even more credit and even more consumption! Rather than accept a painful adjustment period, policymakers are desperately trying to revive the party. And in the process, they are making the situation much worse. All over the world, governments are spending trillions of dollars in order to clean up the mess. Unfortunately, the stark reality is that these governments have no money. So, in most instances, these glorious state-sponsored spending programs are being financed by borrowing and money-printing.
Ronald Reagan on Socialism & Liberalism
Sonia Sotomayor's Mortgage Policy Wrecked America Sonia Sotomayor, Barack Obama's nominee for a seat on the Supreme Court, served on the board of a New York State agency charged with providing discounted mortgages to middle and low income homebuyers from 1987 to 1992. During the time, she was a consistent advocate of pushing the agency to provide more mortgages to low-income home buyers. In short, she advocated the kind of aggressive lending practices that helped create the mortgage meltdown. Sotomayor's tenure on the State of New York Mortgage Agency preceded the current mortgage crisis by close to two decades, so she can't be held directly responsible for our current problems. But in many ways, her approach to home ownership mirrored--or perhaps foreshadowed--the policies that led to the housing boom and bust.
Obama's banking end around The government wants to make it harder for retailers, industrial firms and other non-banks to own banks. But six months ago, it made a big exception for GMAC. One road to regulatory reform runs through Detroit and Utah -- and there are signs the ride could get bumpy. The Obama administration's financial oversight reform program would force industrial loan companies, or ILCs -- banks owned by the likes of retailer Target (TGT, Fortune 500) and carmaker Toyota (TM) -- to submit to Federal Reserve rules and regulations.
Goldman Prepares To Pay Biggest Bonuses Ever (GS) Remember the days when the age of excess on Wall Street were over? We were told the new normal would mean smaller bonuses, reduced egos, no more bottle service and a New York City devastated by the loss of income trickling down from investment bankers to the rest of us. Well, Goldman may have received that memo but it didn't care much for it. Because the big bonus is back at 85 Broad, baby.
The Fed Plots The Next Disastrous GSE The Federal Reserve is planning to create a government sponsored entity to act as a central clearing house and guarantor of the overnight lending market used by investment banks to fund operations, the Financial Times reports. The idea is that the government would create some kind of overnight repurchase market 'utility' that would act as the go-between for lenders such as money market funds and borrowers such as investment banks. That's a role currently played by private banks, principally JP Morgan Chase and Bank of New York Mellon.
Here come the real estate vultures REITs are raising cash to take advantage of bargain prices on distressed commercial properties and mortgages. These are tempting times for real estate bargain hunters. Whether it's the tony house down the street with an asking price that keeps dropping or office space at a deep discount, if you have the means, there are deals to be had. Individual investors snapping up foreclosed houses have helped boost home-sale figures sharply in recent months (although prices have remained depressed). And now some real estate investment trusts are raising money to fund acquisitions of distressed commercial properties.
An Outrageous Prediction The Great Reflation . . . . It's no secret the governments and central banks of the world have opened up the monetary floodgates to reinflate the global economy. The United States has been leading the way. The Federal Reserve alone has committed more than a trillion dollars to monetizing the ballooning U.S. government deficit. Also, it has extended loans and guaranteed debt to the tune of $13 trillion. Most other countries have followed suit. . . . . . . . The governments want to go back in time to a few years ago when all was "well." They want to reinflate the housing bubble. They want to take everything back to where consumers borrowed and spent too much, factories produced too much, and people were happy. They're hoping to kick the can down the road far enough past the next election and they're not going to let any natural economic forces stop them.
Economist Phelps Says U.S. Wealth May Take 15 Years to Rebound U.S. households may take as long as 15 years to rebuild wealth lost in the recession, said Columbia University professor Edmund Phelps, winner of the Nobel Prize in economics in 2006. "The only way we're going to get a healthy, full recovery is over a long period of time, involving households rebuilding their balance sheets and companies in trouble rebalancing their balance sheets," Phelps said in an interview today with Bloomberg Television. "There's no silver bullet that's going to get us into good shape quickly."
Part 2: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Insiders Selling Heavily: What's Up? Bloomberg files this report on the recent rise of insider selling, company executives dumping the most shares since mid-2007, shortly before the broad stock market's peak. . . . . . . . . Surely this can't be a good development for retail investors , many of whom have just recently convinced themselves that it's OK to put some money back into stocks again.
Pessimistic executives cash out of shares Markets tumble as ‘green shoots’ wither Growing pessimism about the prospects for a global economic recovery sent stock and commodity prices tumbling on Monday while new data showed that leading US corporate executives were cashing out of their share holdings at a rapid pace. US government bond yields followed equity prices lower, confounding analysts who had expected that Treasury rates would rise this week as the federal government auctioned off a record $104bn of debt.
Insiders Exit Shares at the Fastest Pace in Two Years Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. Insiders of Standard & Poor's 500 Index companies were net sellers for 14 straight weeks as the gauge rose 36 percent, data compiled by InsiderScore.com show. Amgen Inc. Chairman and Chief Executive Officer Kevin Sharer and five other officials sold $8.2 million of stock. Christopher Donahue, the CEO of Federated Investors Inc., and his brother, Chief Financial Officer Thomas Donahue, offered the most in three years.
Financial Market is like a Soap Opera The financial markets are beginning to resemble a soap opera rather than the economic landscape. The daily drama of early losses, wiped out by the end of the day or the breathless rise in oil prices or even the on again, off again love affair with the dollar or gold (you pick!). But too, like a soap opera, you can walk away for a couple of weeks and pick up right where you left off, never feeling as though you missed much. The S&P 500 is merely two points better than three weeks ago and commodity prices have changed little over the past six weeks. So, dear viewer, what cliffhanger will be on tap this week? There will be housing news that has yet to rally and remains on life-support (could yet another government bailout save the day?!). The consumer is out of intensive care, but may relapse depending upon spending numbers on Friday. All of this excitement is in advance of earnings season that will kick off in two weeks - for heaven's sake, don't touch that dial!!
Stocks tumble on bleak world outlook A surprisingly bleak forecast for the world economy sent stocks tumbling to their lowest level this month. Major stock indexes dropped by more than 2 percent Monday, sending the Dow Jones industrial average down 201 points, after the World Bank estimated the global economy will shrink 2.9 percent in 2009. It previously predicted a 1.7 percent contraction. Investors began buying up stocks in March on hopes that the economy was poised to begin recovering. The grim assessment from the World Bank runs counter to hopes that have been building for months that a gradual recovery was beginning.
Which Country Will Drive the Global Economy Out of Its Recession? This morning the World Bank reminded us that the recession is a world-wide affair, and that the U.S. is probably gaining share of the world's economy despite our economic problems. In other words, while it might be bad here, lots of places have it far worse. Overall, the world's economy is expected to contract by 2.9% -- a sharply lower forecast than the 1.7% drop it was looking for in March. The OECD high-income countries are expected to see a 4.2% decline. The primary cause of the world-wide slump is a 9.7% decline in world trade.
Deflation more likely "Hyperinflation" in the USA is a concept which has been freely bandied about in recent weeks, and a friend - who lives in Switzerland - recently queried this analyst's view that deflation is the more likely eventual outcome for the world economy as a whole. In the conversation which ensued, what finally emerged was that communication on the subject is fraught with definitional issues. For example, my friend pointed to the comment by Marc Farber that "I am 100 percent sure that the US will go into hyperinflation", as quoted on Bloomberg May 27, 2009 The response of this analyst was: "Well, let's think it through on a step by step basis".
Part 3: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Clinton to skip G8, OSCE meetings in Europe U.S. Secretary of State Hillary Clinton will not attend international meetings in Italy and Greece this week because of an injury to her arm, the U.S. State Department said on Monday. The top U.S. diplomat had surgery on Friday to repair her right elbow, which she broke on Wednesday when she tripped and fell in the State Department's basement.
White House sees 10 percent unemployment within months The U.S. unemployment rate is likely rise from already high levels to 10 percent in the next couple of months, a White House spokesman said on Monday. "I think the president has said this, and I would certainly say this, I think you're likely to see unemployment at 10 percent within the next couple of months," White House spokesman Robert Gibbs told reporters.
A High Unemployment Rate Correlates to a High Rate of Inflation It absolutely amazes me how sanguine the Fed, Treasury and Administration are about the prospects for subdued inflation. What they and many economists like to point to as the source of their optimism is the high rate of unemployment, which is currently 9.4%. But the truth is that inflation actually causes higher rates of unemployment, while it is false to believe that inflation can be prevented by a labor slack in the economy.
TH*NK*NG (RECOVERIES) I've been thinking about recoveries. Actually I've been thinking about my post-operative return to normal, my recovery goals, the status of the US recovery, and the US recovery goals. My open heart surgery will be a scant three weeks in the past on Wednesday. My recovery is progressing exceptionally well. To all who have thought of me and prayed for me, a most heartfelt THANK YOU! I am now back home, I have progressed from sponge baths to hand held (sit down) showers, I can comfortably walk up and down 14 steps, and I can now walk around my entire block unassisted (with only one brief pause at the half way point and with the company of a neighbor - just in case ). Monday, I retrieved my Scottie, Mac II, from the kennel. I wish I could say that things are going as well for the US and the economy.
Waiting to Exhale As we pen this brief, equity markets deliberate near term direction as they levitate from a hyper-thrust of massive (save our monopolies) intervention in tandem with a crumbling currency. Share prices are attempting to recover from what is without doubt, an outright failure of long-term fundamentals and stewardship by every practical measure. Stock markets cling to coveted reactionary gains from the very precipice, deciding fatefully, whether the blind masses harbor enough denial or hubris to print yet another series of fresh highs in June. Perhaps they will, and perhaps they will not.
The Real Crisis Is Food: Beginning of the Bull for Agriculture The real crisis is coming… and it's coming fast. Indeed, it started last year, almost entirely off the radar of the American public. While all eyes were glued to the carnage in the stock market and brokerage account balances, a far more serious crisis began to unfold rocking 30 countries around the globe. I'm talking about food shortages. Aside from a few rice shortages that were induced by export restrictions in Asia, food received little or no coverage from the financial media in 2008. Yet, food shortages started riots in over 30 countries worldwide. In Egypt people were actually stabbing each other while standing in line for bread.
Part 4: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Echo boomers a lifeline for embattled U.S. housing The children of baby boomers will eventually resuscitate the pummeled U.S. housing market, Harvard University said on Monday, but in the meantime, limits on income and credit are sustaining the three-year bust. The highest unemployment in almost 26 years, record foreclosures and rigid lending threaten to overcome emerging home sales progress despite unprecedented efforts by the Obama administration, Harvard's State of the Nation's Housing 2009 report said.
Recovery's Missing Ingredient: New Jobs Experts Warn of A Long Dry Spell Despite signs that the recession gripping the nation's economy may be easing, the unemployment rate is projected to continue rising for another year before topping out in double digits, a prospect that threatens to slow growth, increase poverty and further complicate the Obama administration's message of optimism about the economic outlook. The likelihood of severe unemployment extending into the 2010 midterm elections and beyond poses a significant political hurdle to President Obama and congressional Democrats, who are already under fire for what critics label profligate spending. Continuing high unemployment rates would undercut the fundamental argument behind much of that spending: the promise that it will create new jobs and improve the prospects of working Americans, which Obama has called the ultimate measure of a healthy economy.
Rhyming And Reason Will history repeat in terms of the widely followed stock market comparisons that many now put against present conditions. As you may know, often, when a system that is used to forecast financial markets becomes too popular, changes in outcomes occur despite previously tight correlations. And it could be argued we are at such a juncture now, as new services are cropping up everywhere in this regard. Still however, this does not preclude similarities being maintained, as despite speculator-induced differences that may be present today, these exercises are measurements in human behavioral extremes, which history has taught us generally tend to be bounded by similar measures.
Part 5: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Dealer cuts may hurt domestic car sales Local retailers outnumbered Chrysler's dealer closings and planned cuts by General Motors will cause domestic automakers to lose sales to foreign rivals, affected dealers say. After the closings there will be 80 fewer domestic dealers than import dealers in Maryland, according to figures by R.L. Polk & Co. provided by Jack Fitzgerald, co-chairman of the newly formed Committee to Restore Dealer Rights. There will be 45 foreign-car sale-and-service outlets on the Rockville Pike corridor from the D.C. line to Gaithersburg, compared with seven domestic counterparts, he said. "It's like surrender. Are they waving the white flag?" said Mr. Fitzgerald, 73.
As Detroit Crumbles, China Emerges as Auto Epicenter America's auto titans are dismantling their global empires. But across the Pacific, it's as if the global economic forces that have pummeled Detroit never struck. Chinese auto sales are up, and this year China is projected to displace Japan as the world's largest car producer. Now, the auto world is buzzing that China's auto industry may try to pick up the pieces of Detroit -- at a bargain. Chinese companies have tried to dampen speculation, issuing regulatory filings that deny bids to buy Ford's Volvo or General Motor's Saab. But there's little doubt among analysts that Chinese automakers are interested in the United States and that Detroit's automakers are interested in them.
Obama, citing his smoking woes, signs tobacco law Obama signs anti-smoking bill, citing his own difficulty in breaking the cigarette habit Lamenting his first teenage cigarette, President Barack Obama ruefully admitted on Monday that he's spent his adult life fighting the habit. Then he signed the nation's toughest anti-smoking law, aiming to keep thousands of other teens from getting hooked. Obama praised the historic legislation, which gives the Food and Drug Administration unprecedented authority to regulate what goes into tobacco products, to make public the ingredients and to prohibit marketing campaigns geared toward children. But he didn't say how his own struggle was coming since he moved into the White House. And aides were no more forthcoming.
Panel Might Revise Health-Care Bill Senator Charles E. Grassley of Iowa, the top Republican on the Senate Finance Committee, said on Sunday that the panel would consider revisiting its version of health-care legislation to gain more support. An overhaul of the nation’s health-care system was part of President Obama’s campaign pledge to expand coverage to those who do not have health insurance while lowering costs in general. But an initial price tag for the Senate Finance Committee’s proposal came to $1.6 trillion, according to the Congressional Budget Office. That figure caused enough consternation that the chairman, Senator Max Baucus of Montana, postponed a drafting session that was to have begun this week.
Obama's Senior Moment If you have any sense that you may be getting sick in the years ahead, I suggest you get sick immediately. If you will be in need of surgery or any other medical procedure, do it now! If not immediately, be certain that you hand yourself over to the healthcare professionals before October 15 of this year. That is the date on which President Barack Obama hopes to sign his healthcare bill once it has gone through the congressional baloney grinder. . . . . . . . . Also at the heart of President Obama's plan is the restriction of services for older people, people 65 and older who by virtue of modern medicine may actually be ten and fifteen years younger in terms of good health than they would have been a generation ago. Alas, they still have higher health risks and costs than younger people. Thus they are going to bear the brunt of the Obama Administration's cost cuts, for 27-30% of Medicaid spending is spent for caring for people at the end of their lives.
Obama May Lack Votes for Health-Care, Feinstein Says President Barack Obama may not have enough votes in the U.S. Senate to pass his effort to overhaul the nation's health-care system, California Democrat Dianne Feinstein said. "I don't know that he has the votes right now," Feinstein said today on CNN's "State of the Union" program. "I think there's a lot of concern in the Democratic caucus." Controlling costs of the new system is a "difficult subject." Republican Senator Richard Lugar of Indiana said on the same program that the overhaul should be done slowly, and not this year, to ensure it doesn't "threaten the basic structure of the economy."
More credit card rules could hurt Visa, MasterCard Visa Inc and MasterCard Inc, the world's largest payment networks, could face lower revenue and pressure on their stock prices amid a push for increased U.S. regulation of credit cards. Specifically, Congress is mulling regulations on interchange rates -- fees retailers and merchants have to pay to banks that issue credit cards. Most immediately, that would affect the banks that collect those fees. But some investors and analysts are concerned the banks -- already battered by credit losses and toxic assets -- could try to share the haircut with Visa and MasterCard.
Part 6: 6/17/09 Freedom Watch 19 w/ Ron Paul, Peter Schiff, Tom Woods, Lew Rockwell, more
Mystery solved: South Carolina governor taking a hike A mystery surrounding the whereabouts of South Carolina Gov. Mark Sanford was apparently solved late Monday when a Sanford spokesman said he was hiking along the Appalachian Trail. "I apologize for taking so long to send this update, and was waiting to see if (we had) a more definitive idea of what part of the trail he was on before we did so," Joel Sawyer said in an e-mail to reporters.
People on terrorist watch list allowed to buy guns When people on the government's terrorist watch list have tried to buy guns or explosives in recent years, the government has let them the vast majority of the time. That's the finding of a new report by the Government Accountability Office, sent to lawmakers last month and released publicly Monday. From February 2004 to February 2009, 963 background checks using the FBI's National Instant Criminal Background Check System "resulted in valid matches with terrorist watch list records; of these matches, approximately 90 percent were allowed to proceed because the checks revealed no prohibiting information," the GAO report says. About 10 percent were denied.
Japan May End $1.5 Billion Venezuela Loan Plans After Seizures Japan may cancel a planned $1.5 billion loan for Venezuela's El Palito and Puerto La Cruz oil refineries after the South American nation seized Japanese company assets, said a person familiar with the situation. The Japan Bank for International Cooperation, or JBIC, is reviewing loans for the upgrades after Venezuela took over Japanese iron and chemicals assets and fell behind on payments to oil-service contractors, according to the person, who declined to be identified because the review isn't public. The refineries have a combined 327,000 barrels-a-day of capacity.
China wants Ahmadinejad election recognized China's communist government, showing concern that mounting protests in Iran could spark another "color" revolution in a close economic ally, has called for the disputed election results to be recognized and cautioned the United States and other Western powers not to meddle in Iran's affairs. The messages, relayed through China's vast and tightly controlled state media, have glossed over reports of mass demonstrations and the deaths of protesters at the hands of Iranian security forces. Such news and images, coming only weeks after the 20th anniversary of China's violent crackdown on students in Tiananmen Square, could reopen delicate questions about political developments here and undermine Chinese relations with a key oil supplier and customer for Chinese goods.
Stopping the bomb is what counts Raw numbers don't mean very much in the Middle East, where running into the streets to demonstrate, usually but not always against the Great Satan, is the national sport. It's more fun than evening prayers at the mosque. What is impressive is the simple fact of the outpouring of popular sentiment in Tehran. Lifting even a finger to mock the indifference and arrogance of the Supreme Leader Ayatollah Ali Khamenei (Impertinence Be Upon Him), or even President Mahmoud Ahmadinejad (Palaver Be Upon Him), is asking for a hard thump on the head, or worse. Usually much worse.
Fighting tears, shah's son calls crisis a 'moment of truth' The son of the former shah of Iran called Monday for solidarity against Iran's Islamic regime, warning that the democratic movement born out of the election crisis might not succeed without international support. "The moment of truth has arrived," Reza Shah Pahlavi said at Washington's National Press Club. "The people of Iran need to know who stands with them."
Iranian Leaders Try to Divert Attention by Pointing at West, Israel, 'Terrorists' Amid a weekend of deadly violence in Tehran, Iran's leaders launched a concerted drive to deflect blame for the unprecedented post-election turmoil away from the state and towards its customary enemies - the West and Israel. Iran's president, foreign minister and influential parliamentary speaker all lashed out at key European countries and the United States, taking their cue from the supreme leader, Ayatollah Ali Khamenei, who in a sermon on Friday described Western governments as "hungry wolves in ambush."
Neda And Iran's YouTube Revolution More than Twitter, it is the ubiquity of digital cameras and the democratization of video publishing that makes this revolution so different. If it were up to CNN and the old school broadcast networks, you would have never heard of Neda, the 26-year-old Iranian girl. She was shot in the heart by Iranian Security Forces as the cell phone cameras rolled and her father stood by. More than some sophisticated Internet filtering program, these guardians of the TV screen were the real censors. They controlled the visual information pipeline. No longer.
Obama: U.S. ready for possible N.Korea missile launch The United States military is prepared for the possibility that North Korea may attempt to launch a missile toward Hawaii, President Barack Obama said in remarks released on Sunday. "This administration -- and our military -- is fully prepared for any contingencies," Obama said in an interview with CBS television when asked about reported North Korean intentions to fire a missile toward Hawaii on or about July 4. Pressed on whether his comments were a warning of a military response, Obama said no.
Iranian Guards Issue Warning as Vote Errors Are Admitted TEHRAN — Threatening to crush dissent, the powerful Revolutionary Guards warned protesters Monday that they would face a “revolutionary confrontation” if they returned to the streets in their challenge to the presidential election results and their defiance of the country’s leadership. The warning, on the Guards’ Web site, was issued despite an admission by Iran’s most senior panel of election monitors that the number of votes cast in 50 cities exceeded the actual number of voters, according to a state television report two days after the country’s supreme leader pronounced the ballot to be fair.
Dalian 2009 World Economic Forum - Sir Martin Sorrell
East Asia 2009 - World Economic Forum Highlights 19.06.2009 Highlights from the World Economic Forum on East Asia 2009. Some 400 business, government and civil society leaders met in Seoul, Republic of Korea, from 18-19 June to discuss the implications of the economic crisis on the region.
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