4 banks fail, 20 total in 2010 By Julianne Pepitone NEW YORK (CNNMoney.com) -- Regulators shuttered four banks Friday night, bringing the tally of institutions that have gone under so far this year to 20. Fridays closures cost the Federal Deposit Insurance Corporation almost $1.1 billion. Texas, Florida, Illinois and California each had one bank closed by regulators. The largest failure of the night was La Jolla Bank, FSB of La Jolla, California. It had approximately $3.6 billion in total assets and $2.8 billion in total deposits. OneWest Bank, FSB of Pasadena, California, assumed all of the Deposits of La Jolla Bank and agreed to purchase almost all of its assets.
Banks in Calif., Ill., Fla., Texas are shut down WASHINGTON (AP) — Regulators shut four banks from California to Florida on Friday, boosting to 20 the number of U.S. bank failures this year following the 140 closures last year in the worst financial climate in decades. The Federal Deposit Insurance Corp. took over La Jolla Bank, FSB, in La Jolla, Calif. The bank had 10 branches and about $3.6 billion in assets and $2.8 billion in deposits. Also seized was George Washington Savings Bank in Orland Park, Ill. It had four branches and about $412.8 million in assets and $397 million in deposits. The FDIC said OneWest Bank in Pasadena, Calif., agreed to assume all deposits and essentially all assets of La Jolla Bank. The takeover is expected to cost the deposit insurance fund an estimated $882.3 million.
Citi Warns of Withdrawal Gate by Ira Stoll - Future of Capitalism Seen on a recent Citibank statement: "Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change."
Citigroup Says Feds Ordered 7 Day Restriction On Bank Withdrawals Paul Joseph Watson - Prison Planet.com Announcement stokes fears of old fashioned bank runs if economy takes a turn for the worse A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse. Originally reported by John Carney over at the Business Insider website, Citigroup is sending the following information to customers along with their bank statements. “Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change.”
Governors' Gathering Hears That Worse Deficits Are Coming By DOUGLAS MCINTYRE - Daily Finance The nation's governors have seen the future of state finances, and that future looks poor. That was the word from Vermont Governor Jim Douglas (pictured) at this weekend's opening press conference of the winter meeting of the National Governors Association. "The situation is fairly poor for a lot of states around the country," Reuters quotes Douglas, the current chairman of the group, as saying. "In fact, most states." The governors reviewed a report based on preliminary findings by 45 state treasurers that showed states face widening budget gaps despite deep spending cuts.
Bad economies in states to worsen: governors WASHINGTON (Reuters) - The already gloomy conditions of states' economies are set to worsen, according to preliminary survey findings from the National Governors Association released on Saturday. "The situation is fairly poor for a lot of states around the country. In fact, most states," Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting. "What we're finding out from a fiscal standpoint is that the worst is yet to come," Douglas said.
Interest on U.S. government debt, a brewing time bomb MICHAEL POLLARO THE CONTRARIAN TAKE It’s not talked about much, at least by mainstream analysts, but make no mistake, it’s a time bomb, locked and loaded, and it’s set to blow the U.S. government’s budget sky high. That time bomb? The interest cost on the government’s debt. And what you ask will light the fuse? The end of the 30 year bull market in U.S. government debt, the end of record low interest rates. In my opinion, unless politicians decide to renege on the government’s obligations, it’s not a matter of if, it’s a matter of when. And in the end neither the U.S. government nor the Federal Reserve can do anything about it.
Gold extends gains as dollar dips SINGAPORE (Commodity Online) : Gold prices extended gains in Asian trade Monday mainly on dollar weakness over Greece bailout speculations. Spot gold was seen trading at $1126.58 an ounce at 11.30 a.m Singapore time while $1122.36 an ounce at the same time as the euro firmed against the dollar.
‘Inflation is a positive sign for gold market’ Interview with Lawrence Roulston - Commodity Online . . . . Certainly the situation remains very difficult, and it is not sustainable. But that doesn't necessarily imply that the U.S. economy will stop growing or revert back into a recession. There is effectively a mechanism in place that is taking the pressure off and that mechanism is the value of the U.S. dollar. The dollar has lost about half of its value relative to the Euro over the last five years. If your portfolio and assets are valued in dollar terms and are the same as they were five years ago, you've actually lost half the value because the dollar is worth half of what it was.
IMF sale may not stop gold from hitting $1,200 by April 1 By Shashank Shekhar Emirates Business 24/7 (REUTERS) Some analysts believe gold could touch $1,500 an ounce by the end of this yea. A rising demand for gold from financial institutions looking forward to restructure their portfolio before March has offset a possible decline of the yellow metal's prices on the back of a recent International Monetary Fund (IMF) announcement that it plans to sell remaining 191.3 tonnes of gold. Analysts based in Dubai observed that financial institutions, which are looking for safer havens in the countries where the financial year comes to an end in March, are heavily buying into the yellow metal, gold.
Gold in upward phase of long-term bull market By Jeffrey Nichols - Commodity Online The snap-back in the U.S. dollar price of gold this past week to $1,100 an ounce may mark the beginning of a new upward phase in the metal’s long-term bull market. Importantly, gold found support near its early February 14-week low point of $1,045 after a two-month-long retreat. But until gold breaks above its December U.S. dollar-denominated all-time high of $1,227 many players in U.S. markets will remain skeptical of the bull market’s staying power. A break above that level could touch off another speculative buying surge and drive the price much higher. But, meanwhile, developments elsewhere promise to move gold higher – from recent levels, first to $1,150, then $1,200 and eventually to new heights.
Sumitomo's Takai Discusses Gold Price, U.S. Dollar
Gold shows great resilience in the face of adversity Author: Lawrence Williams - MineWeb The gold price has recovered very quickly in each case from two successive announcements which were seen by some as marking the end of the gold bull market. A couple of days ago, Mineweb published an article for which the headline noted that the adverse impact on the gold price of the IMF announcement that it would broaden the sale base for the remaining 191.3 tonnes of gold on offer would be a one or two day wonder. And so it proved - probably less than a day in fact for the initial recovery to kick in, but then the price was knocked again by the U.S Fed raising its discount rate and thus effectively providing the first sign of monetary tightening in the U.S. Gold plunged again for less than 24 hours before it recovered virtually to pre-IMF sale announcement levels once more. And what's more the yellow metal achieved all this in the face of dollar strength - usually a precursor of gold price weakness.
Why Rogers, Soros, Faber invest in commodities DUBAI (Commodity Online): Commodities are the hottest investment assets that are emerging in a world that is increasingly shaken by the collapse of several currencies, ranging from the US dollar to the Euro. So when stock markets are on fire and bank interests are falling, where do people find investment solace? Yes, you guessed it right. It is in commodities that globally renowned investors like Jim Rogers, Marc Faber and George Soros are putting their money in.
IMF gold sale plan poses tricky twist for market By Veronica Brown & Jan Harvey LONDON (Reuters) - The International Monetary Funds long-planned sale of its 403 tonnes of gold has taken on a new twist that may chip away at one of the fundamental drivers for higher gold prices. The IMFs strategy to capitalise on surging gold to raise new resources for lending was first announced in 2008 and had been comfortably received by the market, with expectations for enthusiastic takers amongst Asias central banks.
Will China miss IMF gold buying bus? By David Lew - Commodity Online Will China miss buying gold from the International Monetary Fund (IMF)? It looks that China will miss the bus in buying gold from IMF as the latter is going ahead to sell 191 tonnes of gold soon in the open bullion market. Ever since India bought 200 tonnes of gold from the IMF in November 2009, speculation has been rife in the bullion market that China that has ambitious plans to mop up gold reserves would jump into the fray and buy the remaining yellow metal stock from IMF.
Palladium Still Shines by Jennifer Barry - Financial Sense Palladium had the most tumultuous decade of all the precious metals. Although it's hard to imagine today, it started the century more expensive than platinum. While gold and silver were languishing in 2000, palladium was soaring. During the technology bubble, a perceived shortage of tantalum caused producers of cell phones and other electronic gadgets to switch to palladium which was then much cheaper. As the price zoomed, Ford feared that it would not get enough of the element from Russia. The corporation bought large quantities in panic, pushing the price over US$1000.
Europe's monetary union has become an instrument of deflation torture By Ambrose Evans-Pritchard - Telegraph -- If the purpose of the euro was to bind Europe's tribes together and serve as catalyst for political union, EU elites must have been chastened by the outpouring of anti-German feeling in the Greek parliament last week. The Left called for war damages for Axis occupation and accused German banks of playing a "wretched game of profiteering at the expense of the Greek people". Mainstream New Democracy was no nicer. "How does Germany have the cheek to attack us over our finances when it has still not paid compensation for Greece's war victims? There are still Greeks weeping for lost brothers," said ex-minister Margaritis Tzimas.
Are US Taxpayers Bailing Out Greece? by Ron Paul - Lew Rockwell Last week we were reminded that ours is not the only country suffering from severe economic turmoil. The Greek government is the latest to come close to default on their massive public debt. Greece has insufficient funds in their treasury to make even the minimum payments that are now coming due. Their debt level is about 120 percent of their gross domestic product and their public sector absorbs what amounts to 40 percent of GDP. Any talk of cutting costs and spending is met with violent protests from the many Greeks heavily dependent on government payments. Mounting fears of default have sent shockwaves through their creditors and all of the eurozone countries.
Investors Bet Greece Won't Spill By DAVE KANSAS - WSJ Despite worries that the fiscal problems in Greece and other European countries will grow and spread, some investors have reacted by buying up what appear to be risky assets and shunning more-conservative investments. The biggest beneficiaries of the shift have been central and eastern European markets, though the strategy extends to other emerging markets. The argument is that Greece will have little impact on global economic growth but it might force central bankers to keep interest rates low, making these investments attractive.
Debt Deals Haunt Europe By CHARLES FORELLE AND SUSANNE CRAIG - WSJ Investors Re-Examine Complex Financial Maneuvers Used to Hide Borrowings Concerns that Greece and other struggling European nations may not be able to repay their debts are focusing investor attention on another big worry: Economies across the Continent have used complex financial transactions—sometimes in secret—to hide the true size of their debts and deficits. Investors long turned a blind eye to European governments' aggressive bookkeeping, aimed at meeting the euro zone's fiscal ceilings. Countries using the euro currency have a rich history of exotic maneuvers aimed at meeting rules requiring members to cap debt levels at 60% of their gross domestic product and their annual budget deficits to no more than 3%. Despite criticism, European leaders deemed many of these moves acceptable as they sought the long-planned currency union.
Euro Worst to Come as Greece Hammerlocks ECB on Interest Rates By Liz Capo McCormick and Oliver Biggadike Feb. 22 (Bloomberg) -- Derivative traders are signaling that the euro’s slump to a nine-month low will continue even if European Union leaders bail out Greece. Short-term rates for borrowing in euros in the forwards market are the cheapest relative to loans in dollars since September. The 50 percent collapse in that spread this month signals investors are betting the European Central Bank will keep its benchmark at a record low, sacrificing euro strength to prevent deficit-cutting by debt-laden economies in the region from stymieing growth.
Greece's Painful Choice By Natascha Gewaltig - Forbes It can't devalue its currency. The rest of Europe isn't wild about a bailout. What can Greece do? Action Economics suggests taking a page out of Germany's early 1990s playbook The European Union failed to give Greece a bailout after policy meetings this week—and yields on Greek government debt are rising again as markets remain concerned about the sustainability of the nation's finances. Critics blame the European Monetary Union (EMU)—the foundation of the euro—as the main reason behind Greece's current problems. Simply put, Greece's membership in EMU leaves it unable to employ a classic "quick fix"—a unilateral currency devaluation.
Asia Leads the Global End to Cheap Money By BETTINA WASSENER - NY Times HONG KONG — The U.S. Federal Reserve has just kick-started its cautious exit from unprecedented emergency lending measures — but the process has been going on for months in the Asia-Pacific region, underscoring the two-speed path of the global recovery. Countries from Australia to China have been leading the global march away from easy credit as their economies rebound strongly, while Europe and the United States are still trying to find a solid footing. “The historic shift in the center of economic gravity to the Asian region is continuing, and if anything it has been highlighted by the different performances during the crisis and initial recovery,” Glenn Stevens, the governor of Australia’s central bank, told legislators in Canberra on Friday.
The Chinese Are Selling Treasuries – So What Are They Buying? BY MARTIN HUTCHINSON, Contributing Editor, Money Morning -- In the monthly U.S. Treasury report this week, it was announced that China had sold $34.2 billion of Treasuries in December (or allowed short-term ones to run off), making Japan once again the largest holder of U.S. Treasuries. The battle between China and Japan for the title of largest holder of this dubious asset is not very interesting. What's more interesting is the question of where China is instead opting to invest. After all, $34.2 billion is a fair chunk of change, and China's overall reserves are growing - not shrinking - and now total $2.4 trillion.
Peter Schiff on CNBC 19 Feb 2010
Central Banks Are On the Defensive By: Gary North - GoldSeek All over the Western world, central banks are under pressure from their governments to inflate. Governments are not satisfied with short-term interest rates at historic lows, such as a federal funds rate of 0% to 0.25% in the United States. Politicians want rapid economic growth, and they are convinced that this is possible after a major recession only with more fiat money. In short, they have accurately understood the message of their college-level textbooks. This is what textbooks have been saying for over 50 years. This is the new, improved Keynesianism. Keynes focused on the need for large government deficits and increased government spending, not monetary inflation. The new Keynesianism wants large government deficits and lots of fiat money.
Fed's rate move is all symbol, no substance Jay Hancock - Baltimore Sun Markets are responding to yesterday's surprise move by the Federal Reserve to raise the "discount rate." The dollar is gaining strength; stocks are down overseas; journalists are saying this is the beginning of the end of the cheap money that the Fed has been mainlining since late 2008. I would put a contrarian spin on it. Hardly anybody uses the Fed's discount window, which is intended to provide emergency capital to member banks. The decision to raise the discount borrowing rate to 0.75 percent means absolutely nothing in the mechanics of finance. The Fed's main instrument is the overnight rate, which banks charge each other for overnight lending. Banks who need extra capital almost always get it from each other, not the discount window. And the Fed shows few signs of raising the overnight rate.
Corruption at Federal Reserve Bank Ignored by News Media By Jim Kouri, CPP - CHCH America’s banking industry is aiding and abetting lawbreakers and there appears to be no one in Washington, D.C. interested in conducting an investigation into this corruption. While the mainstream news media are hard at work covering the Democrats striving to achieve their dream of taking control of Americans’ health care, the Federal Reserve Bank continues working with the Mexican government to make it easier for illegal aliens to export US money to their homeland. The Fed is currently devising several programs that will extend banking services to illegal aliens, and most of this money transfer scheme was created under the radar with few—if any—political figures are discussing the subject.
Rate hike, Obama in Las Vegas
Bank of England, ECB to Maintain Exit Plan After Fed By Emma Ross-Thomas Feb. 19 (Bloomberg) -- The Federal Reserve’s decision to raise its discount rate shows that the global recovery is on track and other central banks can afford to keep withdrawing emergency measures, former policy makers and economists said. “It’s another minor step in a long march towards normalization,” said former Bank of England official Charles Goodhart in a telephone interview. “The Fed has already moved some way to reducing credit easing, as has the ECB, as has the Bank of England.”
Buying Belly-Up Banks With FDIC Backing By Ben Steverman - Forbes As the Federal Deposit Insurance Corporation helps healthy banks acquire failed banks, investors guess which is next. Competition raises risks In the banking industry these days, failure can be good news. Being taken over by the Federal Deposit Insurance Corporation, or FDIC, is never good for a failed bank. It can be excellent news for the bank chosen by the FDIC to acquire its prey. In November, East West Bancorp (EWBC) in Pasadena, Calif., won the bidding to take over failed San Francisco-based United Commercial Bank, its $9.9 billion in assets, and $6.5 billion in deposits. Over the next five days, East West's stock jumped 55.7%.
Paul: Faith in the Fed?
Bailout Anger Undermines Geithner By DEBORAH SOLOMON - WSJ WASHINGTON— Timothy Geithner's role in calming the financial crisis landed him the coveted job of Treasury secretary last year. That same résumé is now dogging him. In his next test, Mr. Geithner will find out this week how lawmakers are treating one of his main goals—revamping the nation's financial regulations—when Senate Banking Committee Chairman Chris Dodd unveils his new bill. In Washington, where perception can take on the status of fact, the political woes facing Mr. Geithner are diminishing his authority.
GM's chief gets $9 million By Annalyn Censky NEW YORK (CNNMoney.com) -- General Motors chairman and chief executive, Ed Whitacre, Jr. will receive a compensation package worth $9 million, the automaker said Friday. In a filing with the Securities and Exchange Commission, GM said Whitacre gets $1.7 million in cash, $5.3 million in stock payable over three years starting in 2012, and $2 million in restricted stock as part of the company's long-term incentive plan.
Civilization's Wrecking Crew by J. R. Nyquist Joseph Schumpeter once explained that many Marxists and Keynesians never read a line of Marx or Keynes. According to Thomas Sowell, "They have gotten their ideas second- or third-hand from the intelligentsia." One might say that Marxism and Keynesianism bear a resemblance to disease. If Bubonic plague is carried by flea-infested rats, Marxism and Keynesianism are carried by intellectuals. In the first instance, we are dealing with dangerous bacteria; in the second instance, we are dealing with dangerous ideas.
States short $1 trillion to fund retiree benefits By Tami Luhby NEW YORK (CNNMoney.com) -- Just as they are contending with massive gaps in their operating budgets, states and localities must also deal with a $1 trillion deficit in public employees' retirement benefits' funds, a new report found. The shortfall amounts to more than $8,800 for every household in the nation, according to the Pew Center on the States, which published its findings Thursday.
In D.C., more evidence that commercial real estate headed for foreclosure crisis By V. Dion Haynes - Washington Post -- A mortgage crisis like the one that has devastated homeowners is enveloping the nation's office and retail buildings, and few places are likely to be hit as hard as Washington. The foreclosure wave is likely to swamp many smaller community banks across the country, and many well-known properties, including Washington's Mayflower Hotel and the Boulevard at the Capital Centre in Largo, are at risk, industry analysts say.
Obama's $1.5 billion financing plan would help struggling homeowners in 5 states By Michael D. Shear and Renae Merle - Washington Post -- LAS VEGAS -- President Obama unveiled a $1.5 billion program to aid the states hardest hit by the foreclosure crisis, a small but targeted effort to address a housing problem that continues to resist government solutions. The program, which administration officials called an "innovation fund," is modest in size and reach and comes as the administration's chief foreclosure-prevention program faces criticism for not doing more to help borrowers.
Frustrated Owner Bulldozes Home Ahead Of Foreclosure Man Says Actions Intended To Send Message To Banks MOSCOW, Ohio -- Like many people, Terry Hoskins has had troubles with his bank. But his solution to foreclosure might be unique. Hoskins said he's been in a struggle with RiverHills Bank over his Clermont County home for nearly a decade, a struggle that was coming to an end as the bank began foreclosure proceedings on his $350,000 home. "When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it – no, I wasn't going to stand for that, so I took it down," Hoskins said.
Frustrated Home Owner Bulldozes Home ahead of Foreclosure
Late FHA loans spike 62% - but it's not as bad as it sounds By Les Christie NEW YORK (CNNMoney.com) -- The recent spike in the number of delinquent Federal Housing Administration-insured loans has some people worried that taxpayers will eventually have to bail the agency out. Seriously delinquent FHA loans, those 90 days or more late, jumped 62.1% in the past year to 558,944, or 9.4% of FHA loans, as of the end of January, according to agency statistics released on Friday.
Health official warns of double-digit spike in health insurance premiums By Ricardo Alonso-Zaldivar, Associated Press -- WASHINGTON — Consumers are facing budget-busting increases in medical insurance premiums, Health and Human Services Secretary Kathleen Sebelius said Thursday, releasing a report the Obama administration hopes will tap public outrage and help revive its stalled health care overhaul. People buying their own insurance in at least six states have been facing pressure from insurers to raise rates by as much 56%, the report said. Officials said the problem is likely to be more widespread, but data from individual insurers in different states is difficult to obtain. "We think it shines a light on the urgency for health reform," Sebelius told reporters.
Obama to propose limits on insurance rates By RICARDO ALONSO-ZALDIVAR - Forbes WASHINGTON AP -- President Barack Obama will propose giving federal authorities the power to limit rate hikes by health insurance companies - part of a new health care overhaul plan he will unveil Monday in a last-ditch bid to salvage his signature issue. The proposal would give the federal Health and Human Services Department - in conjunction with state authorities - the power to deny egregious premium increases, roll them back, or demand rebates for consumers, said a White House official, speaking on condition of anonymity because details have not yet been officially released.
Medicaid enrollment rises nationwide, analysis finds By Amy Goldstein - Washington Post The recession has fueled the greatest influx of Americans onto Medicaid since the earliest days of the public insurance program for the poor, according to new findings that show caseloads have surged in every state. More than 3 million people joined Medicaid in the year that ended in June, the data released Thursday show. That pushed enrollment to a record 46.8 million, exacerbating the financial strains on already burdened states and complicating the federal politics of health care. The analysis by the Kaiser Family Foundation, a health policy and research organization, found that in three-fifths of the jurisdictions, including Maryland and the District, people rushed into the safety net for health coverage at more than twice the rate as the year before.
No country for old women Sadhbh Walshe - guardian.co.uk Older women are one of the most vulnerable demographic groups in the US, and the recession is not helping their plight I had lunch a while ago with some elderly ladies at a senior centre in Manhattan. Their lively conversation and bawdy personalities made it feel like an episode of the Golden Girls. But as I listened to them bemoan the cost of the meal ($2 a piece) and watched as they stood in line for the take home goody bag, which contained little more than bread and milk, it became apparent that the reality of the golden years for these women is vastly different than their fictional counterparts.
Paul Volcker Says Mortgage Market Will 'Have To Be Reconstructed' Shahien Nasiripour - HuffPost -- Former Federal Reserve Chairman Paul Volcker said the nation's home mortgage market is in trouble and will have to be "reconstructed." "It's totally dependent, heavily dependent on government participation," Volcker said Friday in an interview with Bloomberg Television. "It shouldn't be that way. That's going to have to be reconstructed." The federal government was responsible for up to 95 percent of all new home mortgages in the fourth quarter of 2009, said Guy Cecala, publisher of Inside Mortgage Finance, a leading industry publication.
Volcker Favors Increasing Retirement Age `Gradually'
Fairfax faces choice: Raise taxes to fund teacher pensions, or tame local spending By: Mark Tapscott - Washington Examiner -- Fairfax County officials are about to run head-on into the same public sector pension funding crisis that is spreading across the entire country, as detailed by the Pew Center on the States' recent report about the "trillion-dollar funding gap." The issue is being drawn with razor-sharpness in Fairfax in the choice now facing local school board officials: They can either ask the Fairfax County Board of Supervisors to raise taxes to fund lavish teacher pensions and other retirement benefits properly, or they can reduce current teacher and administrator salaries by eight percent and use the money saved instead.
Watch out for new credit card traps By David Elli NEW YORK (CNNMoney.com) -- If you haven't heard, big changes are soon coming for the credit card business. The CARD Act, which was signed into law last May, will finally go into effect Monday, meaning big changes for the millions of card-carrying Americans across the country. Among other things, it will eliminate some of the more egregious practices of the past like so-called "double-cycle billing", arbitrary rate increases and hefty fees for exceeding your credit limit.
Are the Rich Getting Richer? The Data Say Yes By CHARLES HUGH SMITH - Daily Finance As DailyFinance recently reported, a new study found that the recession's blows have fallen most heavily on lower-wage households. The study's subtitle says it all: "A Truly Great Depression Among the Nation's Low Income Workers Amidst Full Employment Among the Most Affluent." On the opposite end of the spectrum, a new analysis of Internal Revenue Service data shows that over the last two decades, the wealthiest households in America experienced exploding income even as their tax burdens fell dramatically. And the recession has barely touched these lucky few.
Boeing to lay off 1,020 Portland Business Journal Boeing issued 60-day layoff notices Friday to 1,020 employees. Most of the affected employees work in information technology as part of Boeing’s Engineering, Operations & Technology unit in Washington state and California, a Boeing official said. Their last day of work will be in April, with about half the layoffs occurring in Washington.
THE NEW POOR By PETER S. GOODMAN - NY Times Millions of Unemployed Face Years Without Jobs BUENA PARK, Calif. — Even as the American economy shows tentative signs of a rebound, the human toll of the recession continues to mount, with millions of Americans remaining out of work, out of savings and nearing the end of their unemployment benefits. Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed. Call them the new poor: people long accustomed to the comforts of middle-class life who are now relying on public assistance for the first time in their lives — potentially for years to come.
Fast-food breakfast sales decline as fewer head to work By Ylan Q. Mui - Washington Post The nation's high unemployment rate has thrown millions of people out of work, scared shoppers away from stores and threatened the economic recovery. Now it's taking a bite out of breakfast. Breakfast sales had grown at a ravenous pace during the boom years as busy workers scarfed down sausage biscuits on the way to the office, fueling a $57 billion business and accounting for as much as a quarter of sales at some fast-food chains. Chains opened earlier and expanded their morning menus to accommodate the traffic as lunch and dinner sales flatlined.
Governors brace for more budget chaos By Liz Sidoti - Washington Times WASHINGTON (AP) -- On the recession's front lines, governors are struggling to chart the road ahead for states staggered by unrelenting joblessness and cut-to-the-bone budgets even as Washington reports signs of economic growth. "The worst probably is yet to come," warned Gov. Jim Douglas, R-Vt., chairman of the National Governors Association, at the group's meeting Saturday. He called the situation "fairly poor" in most states, adding that it "doesn't look too good."
The next Ron Paul?
To jeers and cheers, Ron Paul wins straw poll at CPAC By Ralph Z. Hallow - Washington Times WASHINGTON -- Texas Rep. Ron Paul won the 2012 presidential straw poll of conservative activists at the Saturday windup of the 37th annual Conservative Political Action Conference in Washington. The announcement of Mr. Paul's win was greeted with a mixture of loud jeers and equally loud cheers, illustrating the fragility -- despite the conference's three days of emphasized unity -- of the coalition of economic, foreign policy and traditional values conservatives on which the Republican party relies for electoral success.
Larry Kudlow: Tea Party Power to Solve the Debt Problem By: Larry Kudlow - Washington Examiner The New York Times ran a front-page story this week called "Party Gridlock in Washington Feeds New Fear of a Debt Crisis." As usual, they got it wrong. Instead, the headline should have read, "After Scott Brown's Astonishing Senate Win in Massachusetts, New Political Gridlock in Washington Could Spell the End of the Liberal Crack-Up We Have Witnessed over the Past Year." In fact, gridlock in Washington is good, since it will stop the assault of big government until the end of the year, when Congress could be overturned by independents, Tea Partiers, Republicans and probably some Democrats, as well. Just take a look at the high spirits at the CPAC convention, where Tea Partiers are reinvigorating conservatives and Republicans.
Ron Paul CPAC 2010 (1/3): Stop the Wars, End the Fed, Regain our Liberties!
Ron Paul CPAC 2010 (2/3): Stop the Wars, End the Fed, Regain our Liberties!
Ron Paul CPAC 2010 (3/3): Stop the Wars, End the Fed, Regain our Liberties!
Glenn Beck to Republican Party: Repent LA Times Reporting from Washington - Talk show host Glenn Beck poked and prodded the Republican hierarchy Saturday night in a raucous address to conservatives, comparing the party to an alcoholic who hasn't hit bottom and to golfer Tiger Woods before his public repentance. Calling himself a recovering alcoholic, Beck said he believes in the concept of redemption but that he doesn't think the GOP has taken the first step to achieving it.
Biden seeks end to all U.S. nukes By Bill Gertz - Washington Times Sees strong defense with new capabilities The Obama administration will move ahead with Senate ratification of a treaty banning nuclear tests that was voted down by Republicans more than a decade ago, Vice President Joseph R. Biden, Jr. said Thursday. In a speech setting out the administration's arms-control agenda, Mr. Biden also said the United States will continue to pursue President Obama's call for the elimination of all U.S. nuclear arms, but defended spending $7 billion in the coming year to repair an aging arsenal.
Dalai Lama Issue: Jim Rogers on China-US collision course The Dalai Lama is in Washington DC ahead of a meeting with U.S. president Barack Obama. China has already warned the talks will affect relations with America. Recently tension's escalated between the two countries following trade rows and a fallout over proposed U.S. arms sales to Taiwan. For more insight on the issue, RT talks to author and financial commentator Jim Rogers.
NATO neglect lets Taliban build 35% more strength By Rowan Scarborough - Washington Times Troops face resilient foe in Afghan south The Taliban has reaped a recruiting bonanza the past two years, capitalizing on NATO's stagnant posture in southern Afghanistan by increasing fighter ranks by 35 percent, U.S. officials say. The increase is one reason NATO forces, in an ongoing offensive, are meeting strong resistance as they fight town by town to gain control of the Taliban stronghold in the city of Kandahar and in Marjah in neighboring Helmand province.
Impending Explosion: U.S. Intensifies Threats To Russia And Iran BY RICK ROZOFF - Australia.to Washington and its NATO allies launched two of the three major wars in the world over the past eleven years in March - against Yugoslavia in 1999 and against Iraq in 2003. The war drums are being pounded anew and the world may be headed for a catastrophe far worse than those in Yugoslavia, Afghanistan and Iraq. The United States, separately and through the military bloc it controls, the North Atlantic Treaty Organization, is accelerating military deployments and provocations throughout Eurasia and the Middle East. Embroiled with fellow NATO members in the largest-scale military offensive of the joint war in Afghanistan launched eight years ago last October and well on the way to both extending and replicating the Afghan aggression in the Horn of Africa and the Arabian Peninsula [1], Washington and its allies are also taunting and threatening Russia as well as surrounding Iran with military forces and hardware preparatory to a potential attack on that nation.
China buys some time in Pyongyang By Donald Kirk - Asia Times SEOUL - North Korea seems to be playing the China card for all it's worth - in multi-billions in aid and investment - to overcome United Nations sanctions and pressure for Pyongyang to get rid of its nuclear program. A report in South Korea about China investing US$10 billion in North Korea's dilapidated economy has analysts worrying that such a deal could negate the impact of promises of that much money in energy aid as a reward for North Korea giving up its nukes.
General Petraeus Says U.S. Losses in Afghanistan to Be ‘Tough’ By Alison Vekshin Feb. 21 (Bloomberg) -- General David Petraeus, the top U.S. commander in the Middle East and Central Asia, said U.S. losses in Afghanistan will be “tough” and the U.S. presence there is necessary to prevent terrorist attacks. These types of military offensives “are hard, and they’re hard all the time,” Petraeus, 57, said today in an interview on NBC’s “Meet the Press” program.
Iran launches guided-missile destroyer Jamaran From the deck of the new ship, Supreme Leader Ayatollah Ali Khamenei criticizes the United States' military presence in the Gulf. TEHRAN - AP, Iran - From the deck of Iran's new guided-missile destroyer, Supreme Leader Ayatollah Ali Khamenei criticized the United States' military presence in the Gulf Friday and said Washington was trying to frighten Iran's Arab neighbors so it could sell them weapons. Khamenei made the comments after being given a tour of the destroyer Jamaran, which was launched at a Gulf port Friday. State television, which broadcast the event, said the warship was the country's first domestically built destroyer and a major technological leap for Iran's naval industries.
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