Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Monday 02.28.2011
U.S. Regulators Close Illinois Bank
By JOAN E. SOLSMAN - WSJ.com
U.S. regulators said they seized a failed Illinois bank Friday, the second from that state this year.
The Federal Deposit Insurance Corp. said it received Valley Community Bank of St. Charles, Ill., and entered a purchase-and-assumption agreement with First State Bank of Mendota, Ill., to take over the failed bank.
The closure brings the total number of failures this year to 23. The number of banks that failed last year - 157 - was the highest since the savings-and-loan crisis ended in 1992, although the total assets at those fallen banks was much smaller than in 2009.
Coming Soon to a Statehouse Near You: Budget-Battle Showdowns!
Wisconsin. Ohio. Michigan. New Jersey. New York. Budget-battle showdowns are coming soon to a statehouse near you.
Thousands of angry school teachers, union members, and their sympathizers have descended on capitals to fight against reducing pay and benefits for public employees. The protesters are up against a new crop of governors who are hell-bent on spending cuts to deal with deficits that may rise to combined $125 billion in the next fiscal year.
Gov. Andrew Cuomo (D-N.Y.) is looking for public employees to pay $500 million towards benefits they're currently receiving for free.
Walker unswayed by budget-stance critics Wisconsin's executive forgoes national governors conference
By David Eldridge - The Washington Times
Gov. Scott Walker refused to back down Sunday in his budget showdown with Wisconsin's public-employee unions, saying the state is poised at a historic crossroads.
"We're broke," said the Republican governor, whose battle with unions in Wisconsin has landed him at the center of a national debate about government spending.
"I do believe that this is our moment in Wisconsin history," he told NBC's "Meet the Press."
AFL-CIO President Richard Trumka, speaking on the same program, said the governor wasn't interested in solving the state's fiscal crisis, accusing Mr. Walker instead of wanting to break the state's unions.
State Budget Battle Showdowns
Breaking Public Unions: Good!
By Kevin McCullough - Townhall.com
When the delinquent state democrats who had illegally abandoned their duties as representatives of the good people of Wisconsin finally showed up for work, Gov. Scott Walker will have won a decisive victory against the public sector unions in his state.
But in reality he was fighting for all of us, even those far beyond the cheese curd borders. What the unions were doing to the education of the state of Wisconsin was derelict but what they were doing against the taxpayers of the nation was criminal.
Wis. Assembly Passes Bill Taking Away Union Rights
By THE ASSOCIATED PRESS
MADISON, Wis. (AP) - Republicans in the Wisconsin Assembly took the first significant action on their plan to strip collective bargaining rights from most public workers, abruptly passing the measure early Friday morning before sleep-deprived Democrats realized what was happening.
The vote ended three straight days of punishing debate in the Assembly. But the political standoff over the bill - and the monumental protests at the state Capitol against it - appear far from over.
The Assembly's vote sent the bill on to the Senate, but minority Democrats in that house have fled to Illinois to prevent a vote and say they won't return unless Republican Gov. Scott Walker agrees to discuss a compromise. Republicans who control the Senate sent state troopers out looking for them at their homes on Thursday, but they turned up nothing.
Wisconsin Bill Advances, Then Stalls
By KATE ZERNIKE and SUSAN SAULNY - NYTimes.com
MADISON, Wis. - The State Assembly approved a bill early Friday to limit the collective bargaining rights for most public workers, but the measure stalled because Senate Democrats remained out of the state as part of an effort to derail the legislation.
After the vote, Democratic Assembly members shouted at their Republican counterparts, who were escorted from the chamber by the police.
The State Senate cannot vote on the legislation without a quorum of 20 members. There are only 19 Republicans in the Senate, and their Democratic counterparts remained in Illinois to prevent a vote. Wisconsin troopers do not have jurisdiction to order them back home.
Early Stages of Wisc Capitol Evacuation Peaceful
Why Wisconsin matters to global financial markets
By Martin Hutchinson - Reutgers.com
WASHINGTON - It's hard to see how a bucolic Midwestern lakeside college town can matter much to the global financial markets. Yet while Madison, Wisconsin is no Athens or Tripoli, it has become ground zero for a pitched battle between public sector unions and cash-strapped governments over collective bargaining. If the state's governor can end the practice he may set a precedent for fiscal reform that spreads nationally - and to Washington.
Employee pensions and healthcare are the major long-term fiscal problem for most states and the federal government. Trouble is the traditional negotiation between public sector unions and politicians is fraught with moral hazard: Politicians who are often buoyed to public office through the support of the unions are only too happy to make short-term promises to them that create huge fiscal difficulties in future years.
UN Security Council Approves Sanctions Against Libya, Qaddafi
By William Varner - BusinessWeek.com
Feb. 26 (Bloomberg) -- The United Nations Security Council voted 15 to 0 today to bar the travel and freeze the foreign assets of Libyan leader Muammar Qaddafi and four officials in an effort to halt his regime's attacks on protesters.
The resolution, which also imposes an arms embargo on Libya, calls for an immediate end to violence that it says "may amount to crimes against humanity." The text, while referring the allegations to the International Criminal Court in The Hague, cites as authorization for all the sanctions a provision of the UN Charter that precludes military intervention.
Is Barack Obama About To Order The U.S. Military To Invade Libya?
EndOfTheAmericanDream.com
As insane as it might sound, the United States may soon be getting involved in another war in the Middle East. According to White House spokesman Jay Carney, "no options" have been taken off the table when it comes to the situation in Libya. By saying that "all options" are being considered, that is basically a way for the Obama administration to threaten Gadhafi without actually coming right out and threatening him. In recent days, news reports have been appearing all over the mainstream media hyping the possibility that we may have to take military action in Libya. This would not be happening if the White House did not want it to happen. The truth is that Barack Obama is apparently seriously considering U.S. military action in Libya.
U.S. Military Attack On Libya May Be Only Solution
Libya Now, Iran Then: How Close Are We to 1979?
By Gonzalo Lira
Today, the UK's Telegraph is reporting that British government drones in Whitehall are figuring out the legal means to seize Muammar al-Gaddafi's assets in Britain, which are said to total some £20 billion.
Notice that's pounds sterling - the equivalent of US$32 billion: Enough cash to plug up California's and New York State's deficits, and still have enough left over for a very respectable weekend at The Palms in Las Vegas.
Clinton: U.S. ready to aid to Libyan opposition
By Bradley Klapper - Associated Press - WashintgonTimes.com
WASHINGTON (AP) - The Obama administration stands ready to offer "any type of assistance" to Libyans seeking to oust Moammar Gadhafi, Secretary of State Hillary Rodham Clinton said Sunday, adding a warning to other African nations not to let mercenaries go to the aid of the longtime dictator.
Mrs. Clinton made no mention of any U.S. military assistance in her remarks to reporters before flying to Geneva for talks with diplomats from Russia, the European Union and other powers eager to present a united anti-Gadhafi front.
White House caution in response to Gaddafi's actions was guided by fears for the safety of Americans in Libya
By Scott Wilson - Washington Post
As President Obama and his advisers measured their response to the mass killing in Libya over the past week, they were mindful of one particular scene unfolding thousands of miles away.
The U.S. Embassy and other diplomatic posts in Tripoli, reopened only five years ago, comprise a series of lightly protected compounds and trailers. The guards there were Libyan, not the U.S. Marines posted outside most embassies. And an armed and angry Libyan opposition was approaching the city from the east, as hundreds of Americans awaited evacuation across rough seas.
West to Isolate Gadhafi As Bloodshed Spreads, U.S. and European Allies Vow Sanctions, Arms Embargo
By JAY SOLOMON And CHARLES LEVINSON - WSJ.com
U.S. and European governments said Friday they would impose financial sanctions on Libya and implement an arms embargo, as witnesses said forces loyal to embattled Libyan leader Col. Moammar Gadhafi were gunning down antiregime demonstrators in neighborhoods across Tripoli.
Residents mounted their first mass demonstrations in days Friday. In at least three neighborhoods, pro-Gadhafi security forces opened fire with automatic arms on crowds of protesters, said witnesses, describing body-strewn streets.
Libya Rebels Take Control of City Near Tripoli
By MARGARET COKER
TRIPOLI - Rebel groups appear to have taken control of the area of Zawiya close to Tripoli, the Libyan capital, closing the circle on the regime of Moammar Gadhafi, a day after the United Nations Security Council unanimously imposed sanctions on the country.
The moves, which follow the government's violent efforts to stem rising protests, increase pressure on Mr. Gadhafi to resign. Despite the heavy-handed crackdown against demonstrators, opponents of the regime continue to hold key areas of the country, though the movements appear to be fragmented, with little central control.
Protests continue; regime may be unable to use chemical weapons;
Venezuela calls for dialogue
By Alana Semuels - LATimes.com
Residents chanted "Kadafi out" and "Free Libya" on the streets of Zawiya, 30 miles west of Tripoli, as anti-government forces deployed tanks and anti-aircraft weapons Sunday, according to the Associated Press.
The protests come as leaders in the eastern city of Benghazi said they had set up an interim council to represent the face of the revolution and leaders across Europe and the United States urged embattled Libyan leader Moammar Kadafi to step down.
Libyan Rebels Tighten Ring of Armed Control Near Tripoli
By DAVID D. KIRKPATRICK and SHARON OTTERMAN - NYTimes.com
ZAWIYA, Libya - In this city 30 miles west of Tripoli, hundreds of people rejoiced in a central square on Sunday, waving the red, black and green flag that has come to signify a free Libya and shouting the chants that foretold the downfall of governments in Tunisia and Egypt: "The people want to bring down the regime."
Rebels, in control of the city, had reinforced its boundaries with informal barricades, and military units that had defected stood guard with rifles, six tanks and anti-aircraft guns mounted on the backs of trucks. In the central square here, a mosque was riddled with enormous holes, evidence of the government's failed attempt to take back this city on Thursday. Nearby lay seven freshly dug graves belonging to protesters who had fallen in that siege, witnesses said.
Libya: Barack Obama calls on Col Gaddafi to step down Barack Obama has for the first time called on Col Muammar Gaddafi to step down, saying that the Libyan government must be held accountable for its brutal crackdown on dissenters.
By Alex Spillius, in Washington - Telegraph.co.uk
Late on Saturday night, the UN Security Council unanimously approved international sanctions against the Libyan regime and voted unanimously to refer evidence of atrocities in Libya to the International Criminal Court.
The US administration earlier announced new unilateral sanctions against the country.
The White House said that in a conversation with Angela Merkel, the German Chancellor, the president stated "that when a leader's only means of staying in power is to use mass violence against his own people, he has lost the legitimacy to rule and needs to do what is right for his country by leaving now".
U.N. names names, identifying inner members of Kadafi regime in travel ban -- By Alana Semuels - LATimes.com
The U.N. Security Council might have limited resources with which to intervene in the uprisings in Libya, but it named names -- and birthdays and passport numbers -- in its resolution Saturday imposing travel bans and freezing the assets of members of the Kadafi regime. The U.N. resolution, obtained by the Los Angeles Times, lists the names, dates and places of birth of dozens of Kadafi's closest associates and relatives, lending some insight into who is controlling the foundering regime.
Aside from condemning the violence in Libya and referring actions of the Kadafi regime to the International Criminal Court, the resolution "decides that all Member States shall take the necessary measures to prevent the entry into or transit through their territories of individuals listed in Annex I of this resolution."
Defiant Gaddafi confined to Tripoli
Libyan leader continues to blame foreigners and al-Qaeda for the unrest that is threatening his 41-year rule.
AlJazeera
As more cities fall into the hands of the pro-democracy protesters, Muammar Gaddafi, the Libyan leader, is hanging on to the capital where security forces loyal to him seem to have a firm hold, even amid reports of sporadic gunfire.
On Sunday, protesters had taken control of the city of Zawiyah, 50km from Tripoli, further shrinking the control of Gaddafi's government after the opposition took over most of the eastern part of the country.
On the Edge with Max Keiser-Global insurrection
02-25-2011-(Part1)
On the Edge with Max Keiser-Global insurrection
02-25-2011-(Part2)
On the Edge with Max Keiser-Global insurrection
02-25-2011-(Part3)
In the Cradle of Libya's Uprising, the Rebels Learn to Govern Themselves -- By KAREEM FAHIM - NYTimes.com
BENGHAZI, Libya - The rebels here said they caught a spy in the court building, the nerve center of the uprising, recording insurgent plans on a cellphone camera. The response was swift. Prosecutors interrogated the man on Thursday, and the rebels said they planned to detain him, for now.
"We want to know if he's alone," said Fathi Terbil, the lawyer whose detention set off Libya's rebellion and who is now one of its leaders.
In the city where the Libyan uprising began, lawyers, prosecutors, judges and average citizens who oppose the rule of Col. Muammar el-Qaddafi are adjusting to unfamiliar roles: they are keepers both of an evolving rebellion, as well as law and order in Libya's second largest city.
If the Saudis revolt, the world's in trouble The fate of the global recovery rests on events in Riyadh
By Jeremy Warner - Telegraph.co.uk
Be careful what you wish for. After an ambiguous start, Western leaders have broadly welcomed the wave of protest and revolutions sweeping North Africa and parts of the Middle East. But beneath the words of encouragement about people taking charge of their own destiny, there is a growing and vital concern - the security of our oil and gas supplies.
The West's complicity in supporting the autocratic regimes that characterise many of the big oil-exporting nations is in part explained by the fact that, whatever their sins, they did at least seem to provide stability in the energy markets. That stability, however, has been thrown up in the air by the wave of protest sweeping the region.
Tunisian prime minister resigns as protests continue Tunisia's prime minister Mohamed Ghannouchi resigned on Sunday after renewed violent protests calling for him to step down.
By Richard Spencer - Telegraph.co.uk
A technocrat who was originally seen as a safe public face of the government after President Zine al-Abedine Ben Ali fell, he was opposed by many protesters because of his long ties to the former leader
Mr Ghannouchi's announcement on state TV came after officials said at least four people had died in recent days in the capital during clashes between stone-throwing protesters and police.
Demonstrations Turn Violent in Iraq
By JACK HEALY and MICHAEL S. SCHMIDT - NYTimes.com
BAGHDAD - Demonstrations turned violent across Iraq on Friday, as protesters burned buildings and security forces fired on the crowds.
Thousands of Iraqis demanding better government services took to the streets in at least 10 cities, from Basra in the south to Mosul in the north, despite attempts by the government and by top Shiite leaders to head off the protests .
Prime Minister Nuri Kamal al-Maliki made a televised speech on Thursday urging Iraqis not to gather, warning that insurgents would use the opportunity to carry out attacks. Security officials in Baghdad banned all cars from the streets until further notice.
Ireland's Prelude To Revolution: Imf Bankster Party Tossed From Power In Crushing Defeat For Bank Bailouts - DailyBail.com
Ireland's Fine Gael party will take control of the government after winning in yesterday's elections. A few weeks ago, they were threatening to give haircuts to bank bondholders, but now most "serious" people in government and the media believe this will never actually happen. However, the wildcard in all of this is the Irish people themselves -- they're expecting real change, not half measures. And some of them are openly talking of a "revolution."
It remains to be seen whether the moment of truth has finally arrived for Ireland's bank bondholders. As predicted, Ireland's opposition party, Fine Gael (pronounced "feena gail"), did very well in yesterday's elections and will likely form a coalition government with Ireland's Labour party. As we reported earlier, Fine Gael played to voters' anger over the bailouts by engaging in a good deal of tough talk about unilaterally restructuring the debts of Ireland's bailed out banks.
Don't Compare the Current Oil Situation to $140 Oil in 2008
by Hidden Levers - OilPrice.com
There's been too much cacophony about the Libya unrest. Rather than be beholden to the sensationalist financial media and just fear monger over Oil prices, it's a better idea to have some proper guidance as to where we are, and how bad it could get.
First the facts - Libya is the 18th largest oil producer (1.8mm barrels) and the 10th largest exporter (1.4mm barrels). It has lost 20-30 percent of its production capacity for the moment, according to differing reports, but this blip pushed Oil prices up to $93.57 on Tuesday, 9% up, and the highest since October 2008.
Have You Noticed That "Big Government" Is Failing Everywhere?
By Austin Hill - Townhall.com
"Big government" is failing around the globe.
From Sacramento to Saudi Arabia , big, controlling, impersonal and coercive government is failing to fulfill the most basic human needs of the people it is purports to serve. And while scores of individuals around the world struggle to free themselves of "big government's" shackles - some in the Middle East even losing their lives in the process - many of my fellow Americans have been gathering publicly and chanting and banging drums and carrying banners and demanding more of it.
Obama says government shutdown imperils economy
By Darlene Superville - Associated Press - WashingtonTimes.com
WASHINGTON (AP) - President Obama says the economic recovery will stall if Congress can't agree on spending cuts and avoid a government shutdown.
The current budget expires next Friday. That means lawmakers must OK a new spending plan before the March 4 deadline to keep much of the government from running out of money and closing. The Republican-run House and Democratic-controlled Senate are bickering over how much to cut.
Marc Faber McAlvany Interview 23 February 2011
How to Rebuild U.S. Infrastructure From the Ground Up
By Robert Puentes - TheAtlantic.com
As the U.S. works to rebuild and re-orient its economy, infrastructure should be near the top of the "to-do" list. It appears that government and business leaders understand the paramount importance of infrastructure to maximizing economic growth and opportunity, so the question is how to proceed.
Unfortunately, with state and local budgets stretched to the bone, the focus is not on investments to boost the economy, but on fiscal retrenchment. States like Arizona and California are contending with massive cyclical and structural shortfalls that amount to 33 percent and 21 percent of annual stable expenditures, respectively. Yet these constraints should open up possibilities -- and argue the need -- for a mix of public and private financing models for infrastructure. Even as budget crises continue to roil in city halls and in state houses around the country, there is money available in capital markets, pension funds, and even through foreign financiers who are ready and willing to invest in the right kind of U.S. infrastructure.
Government, banks wrestle over how to settle case over botched foreclosure paperwork The amount of the settlement - from $5 billion to $20 billion - and how best to use the money are at the center of negotiations.
By Jim Puzzanghera and E. Scott Reckard, Los Angeles Times
Reporting from Washington and Los Angeles - Federal and state officials are analyzing proposals that could help people who lost their homes or missed mortgage payments as a key part in resolving a multibillion-dollar case over botched foreclosure paperwork.
Government negotiators are wrestling with banks and their mortgage servicing arms over the amount of the settlement - from $5 billion to $20 billion - and then must decide how best to use the money.
F.H.A. to Raise Insurance Premiums
By LYNNLEY BROWNING - NYTimes.com
FEDERAL Housing Administration mortgages, the government-insured loans that have surged in popularity in recent years, will be getting slightly more expensive this spring.
The F.H.A. announced this month that it was raising the annual mortgage insurance premium for borrowers by a quarter of a percentage point - to 1.1 or 1.15 percent of the loan amount for 30-year fixed-rate loans, and 0.25 or 0.50 for 15-year or shorter-term loans.
The higher premium applies to F.H.A. loans taken out on or after April 18.
Federal programs can help homeowners avoid foreclosure
By Lew Sichelman - LATimes.com
Reporting from Washington - Despite efforts to the contrary, there still is a major gap between homeowners in danger of losing their homes and the resources available to help them avoid foreclosure, according to a report released last month in Nevada.
The study found that more than half the Nevadans facing foreclosure didn't know about federal and state programs aimed at helping them. Furthermore, almost as many said their lenders were "not willing at all" to work with them.
California opens new doors to keep families in homes
By Steven Spears - The-Signal.com
With high unemployment and the California real estate values still in the doldrums, the state is taking a new step to prevent foreclosures and stabilize communities.
The new initiative, "Keep Your Home California," includes four new programs to assist homeowners struggling to make their mortgage payments and remain in their homes.
Each of these programs is funded by the U.S. Treasury Department as part of its "Hardest Hit Fund," specifically designed to assist states most affected by the foreclosure crisis. California received the largest allocation -- nearly $2 billion -- to help tens of thousands of eligible families.
Michigan Police Accused of Honor Killing Cover-Ups
DefnedChristians.org
In Dearborn, Michigan there is a large population of Muslims who have considerable political clout. The past two summers, Christians have been arrested for witnessing at the Dearborn Arab Festival.
The Christians were peacefully engaging in conversations when the Dearborn police falsely arrested them for disturbing the peace. In both cases, the charges were eventually dropped.
Now the Christians are suing the Dearborn Police Department for violating their civil rights. Contained in the lawsuit are explosive allegations from a Dearborn police officer that there have been Muslim honor killings that have been covered up by the police.
Jury Nullification Advocate Is Indicted
By BENJAMIN WEISER - NYTimes.com
Julian P. Heicklen sat silent and unresponsive as his bail hearing began last week in federal court in Manhattan; his eyes were closed, his head slumped forward.
"Mr. Heicklen?" the magistrate judge, Ronald L. Ellis, asked. "Mr. Heicklen? Is Mr. Heicklen awake?"
"I believe he is, your honor," a prosecutor, Rebecca Mermelstein, said. "I think he's choosing not to respond but is certainly capable of doing so."
There was, in fact, nothing wrong with Mr. Heicklen, 78, who eventually opened his eyes and told the judge, "I'm exercising my Fifth Amendment right to remain silent."
Will 'Chindia' rule the world in 2050, or America after all? With a small tweak in assumptions and the inexorable force of compound arithmetic, Citigroup and HSBC have come up with radically different pictures of what the world will look like in 2050.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Which of the two is closer to the mark will determine whether the West hangs on, or disappears as a relevant voice in global affairs.
For neo-Spenglerites, Citigroup's Willem Buiter offers some astonishing projections. The Muslim powerhouse of Indonesia will alone match the combined GDP of Germany, France, Italy, and Britain by mid-century.
The economies of China and India will together be four times as large as the United States, restoring the historic order of Asian dominance before Europe's navies burst on the scene in the 16th Century. Panta Rei, says Dr Buiter: all is in flux; nothing will remain the same.
Cambodia's deadly virus: 85% mortality rate
Ladies and Gentlemen, the next Black Death, a global pandemic of catastrophic proportions, has reared its ugly head in the Far East, home to many pandemic viruses. This time it is not a 30 per cent death rate, it is an 85 per cent death rate. It is called the Cambodian Avian Flu virus.
Avian Flu has been around for centuries. So have other pandemics. But an 85 per cent mortality rate?
Let us not invent, let us use the World Health Organization's communications: Avian influenza - situation in Cambodia
CFR is 'pleased' with Obama's "deft handling" of Middle East crisis. Transformation in the Middle East Comparing the Uprisings in Tunisia, Egypt, and Bahrain
Robert H. Pelletreau - CFR - ForeignAffairs.com
The Middle East is boiling. Unprecedented popular uprisings have rocked a number of countries, especially the three where I served as U.S. ambassador -- Tunisia, Egypt, and Bahrain. Demonstrators, taking to the streets to protest their dismal living conditions, refused to be beaten back, swelling until the autocratic presidents in Tunisia and Egypt were driven from power. As of this writing, the family-run government in Bahrain is fighting back, hoping its security forces and hold on power will be strong enough to outlast the protests. The uprisings in the three countries have had many similarities, but there have also been significant differences. All three face rising unemployment as a result of the global recession. They were experiencing growing gaps between rich and poor, stifled free speech, repression of the opposition, widespread corruption, and continuing autocratic control behind a veneer of democratic openings.
Middle East Chaos: What To Learn And What To Expect
By Giordano Bruno - Neithercorp Press
There are many different kinds of revolution; some more effective than others. Telling the difference between a successful revolution and a failed revolution can be tricky. Often, on the surface, they look exactly the same. The secret is to set aside what we would "like" to see, and be brutally honest about what was actually accomplished in the course of the dissenting action. Has power been fully rescinded by the offending government or regime to the people, or, to yet another corrupt bureaucracy with a slightly different face? Have the puppet strings of corporate globalists been severed from your country, or do they remain strong as ever? Has ANY corrupt official actually been punished for the crimes that led to the insurgency in the first place, or, did they fly off scot-free to their million dollar villas in Ecuador, drinking mojitos in wicker recliners and watching the disaster they created unfold on CNN? Who ultimately benefited from the event?
Saudi ruler offers $36bn to stave off uprising amid warning oil price could double The king of Saudi Arabia last night announced $36bn (£22bn) of extra benefits for his people in an attempt to stop the wave of Arab uprisings spreading to the world's biggest oil exporter, as experts warned Brent crude could hit $220 a barrel.
By Ambrose Evans-Pritchard - Telegraph.co.uk
King Abdullah's support package offers to give 18m lower and middle-income Saudi's inflation-busting pay rises, unemployment benefits and affordable housing.
The cash-rich Saudi government pledged to spend a total of $400bn by the end of 2014 to improve education, health care and the kingdom's infrastructure.
Charles Robertson, an analyst at Renaissance Capital, said investors are very concerned about what might happen in Saudi Arabia's oil rich Eastern Province, the home of the kingdom's restless Shi'ite minority. The Saudis produce 11.6pc of world output, but a much higher share of exports.
Saudi Arabia's move to keep oil flowing brings crude prices down Energy traders were calmed by news that Saudi Arabia was in talks with European refiners to fill the gap caused by the disruption in Libya. When it comes to shoring up oil markets, the Saudis have put political grievances aside.
By Neela Banerjee, Los Angeles Times
Reporting from Washington - Crude oil prices pulled back from highs not seen since 2008 as leaders from Saudi Arabia to the White House offered fresh assurances that the world wouldn't run short of oil despite violence in the Mideast and North Africa.
Oil futures hit $103 a barrel in New York trading Thursday but ended the day at $97.28, down 82 cents. In Europe, oil also fell in electronic trading after nearing $120 a barrel.
Petroleum prices had surged on fears that political unrest in Libya, Egypt and other countries could reduce global supplies - pushing fuel costs higher and throwing the fledgling global economic recovery into reverse.
Opposition forces close in around Libyan capital Another western town, Zawiya, about 30 miles from Tripoli, rises up against Moammar Kadafi, who gives a rambling interview blaming Al Qaeda for the popular uprising. Protesters plan a huge rally in Tripoli after Friday prayers.
By Borzou Daragahi, Los Angeles Times
Reporting from Ras Ajdir, Tunisia - Smoldering unrest drew tighter around Tripoli and areas of western Libya previously under government control Thursday, the day before a planned rally in the capital against Moammar Kadafi's rule.
Kadafi made another characteristically rambling address, acknowledging that the city of Zawiya 30 miles west of the capital had risen up against his 40-year-rule. Foreign residents fleeing the city emerged with grim tales of fighting in the streets.
Libya: Gaddafi's billions to be seized by Britain Ministers have identified billions of pounds that Col Muammar Gaddafi and the Libyan regime have deposited in London, The Daily Telegraph can disclose.
By Robert Winnett, and James Kirkup in Muscat - Telegraph.co.uk
The funds are expected to be seized within days. The Treasury is understood to have set up a unit to trace Col Gaddafi's assets in Britain, which are thought to include billions of dollars in bank accounts, commercial property and a £10 million mansion in London.
In total, the Libyan regime is said to have around £20 billion in liquid assets, mostly in London. These are expected to be frozen as part of an international effort to force the dictator from power. A Whitehall source said: "The first priority is to get British nationals out of Libya. But then we are ready to move in on Gaddafi's assets, the work is under way. This is definitely on the radar at the highest levels."
Libya's Role in World Oil Production, Past and Future
Written by The Oil Drum - OilPrice.com
Libya is a relatively new country, having declared independence in 1951. For the last 39 years, the country has been ruled by a single man, Colonel Muammar al-Gaddafi. Over the years, the identity of this leader and his exquisite sense of style have mingled with the identity of the country itself.
Libya joined OPEC right after its creation, and played a pivotal role in the 1973 oil crisis. For the next three decades, Libya endured tense (and sometimes belligerent) relations with western countries. In recent years, as international oil prices have been rising, Libya has been able to re-institute itself as a reliable partner to the West, taking full advantage of the wealth promised by its still considerable oil resources.
Qaddafi Strikes Back as Rebels Close In on Libyan Capital
By KAREEM FAHIM and DAVID D. KIRKPATRICK - NYTimes.com
BENGHAZI, Libya - Thousands of mercenary and other forces struck back at a tightening circle of rebellions around the capital, Tripoli, on Thursday, trying to fend off an uprising against the 40-year rule of Col. Muammar el-Qaddafi, who blamed the revolt on "hallucinogenic" drugs and Osama bin Laden.
The bloodiest fighting centered on Zawiya, a gateway city to the capital, just 30 miles west of Tripoli. Early Thursday, Colonel Qaddafi's forces arrived and unleashed an assault using automatic weapons and an anti-aircraft gun on a mosque occupied by rebels armed with hunting rifles, Libyans who had fled the country said.
In Jordan, King Abdullah II getting earful from tribal leaders At the heart of the discontent is Jordan's growing Palestinian population, which threatens to erode the tribes' hold on money and power. The king also faces pressure to end corruption and his grip on political power.
By Kim Murphy, Los Angeles Times
Reporting from Am Romana, Jordan - Faris Fayez grew up hearing about the day in 1970 when his father and other Jordanian tribal leaders summoned the late King Hussein to complain about entrenched Palestinian fighters who were virtually occupying the country.
"King Hussein was two hours late. When he finally arrived, my father stood up - and he used to call the king by his first name - 'Hussein,' he said, 'We feel now that for you we are the cover that the shepherd uses. When you get cold, you cover up with us. When you don't need us, you kick the cover with your feet.'"
Damascus - Iranian Warships Arrive in Syria, Witness Says
Vosizneias.com
Damascus - An eyewitness says two Iranian warships have arrived at Syria's Latakia seaport.
The ships arrived Thursday afternoon. The witness spoke on condition of anonymity because of the sensitivity of the issue.
The two Iranian vessels sailed through the Suez Canal and into the Mediterranean this week, the first such trip in at least three decades.
Saudi Arabia and Iran's Interest in Oil Rich Bahrain's Growing Unrest
by David Caploe PhD - OilPrice.com
At the heart of the Bahrain crisis is a Sunni / Shia Muslim split that is not limited to the small island off Saudi Arabia, but extends throughout the Persian Gulf region, home of most Arab oil wealth.
The Sunni al-Khalifa family has ruled Bahrain since 1782 despite a clear majority of the population being Shia.
There have always been tensions between the two communities, with the Shia accusing the royal family of packing the higher echelons of the security forces, government and business community with Sunnis.
The Iranian government is giving support to the Shia population while Saudi Arabia and Pakistan side with the Sunni al-Khalifas. Add to this that the US Navy's 5th Fleet is based in Bahrain, partly to counter Iranian influence in the Strait of Hormuz, and a small island's domestic political situation becomes of major regional geopolitical importance.
Once a Mad Dog
By Roger Kaplan - TheAmerican Spectator.org
Whether or not he survives the wrath of his own subjects, Muammar al-Gaddafi, the Libyan dictator, will be missed only by a grab bag of plug-uglies whose terrorism he encouraged for decades. But it would be a mistake to write off the latest chapter in the Arab revolt as a case of a bomb thrower hoisted by his own petard. Gaddafi, beyond the oddities of his personality, represents as well as anyone the shame and the awfulness of the first decades of post-colonialism. It might be well to consider that his durability is also a reproach to the Western powers that let appalling regimes take shape and endure -- he lasted more than four decades -- out of their own indifference.
Arab Autocracies and US Inflation
By Michael Pento, Senior Economist at Euro Pacific Capital
Civil revolt is currently spreading across the Arab world. What began in Tunisia has now metastasized into Bahrain, Egypt and Libya. Though two dictators have been ousted, the chances that these regimes will fundamentally transform from autocracy to a system of free markets and property rights are also up in the air. An important question is whether or not Saudi Arabia will eventually get into the mix; and, if so, whether the current struggle in Libya would morph into a proxy war between Saudi Arabia (Sunni Muslims) and Iran (Shiite Muslims). It remains to be seen whether the new regime in Egypt-whatever form it ends up to be - will allow Iran to use the Suez Canal to parade warships across the Mediterranean Sea and into Syria. If so, what would Israel's reaction to such a perceived provocation be?
What's Really Going On With Wisconsin's Budget
by Sergio Hernandez - ProPublica.org
A standoff is brewing in Madison, Wis., over Republican Gov. Scott Walker's proposal to cut union rights for state workers. Walker says the cuts are necessary to bridge the state's growing budget gap, while throngs of protesters have gathered to oppose the cuts and state legislators have fled to avoid a vote. Here's our quick breakdown of the basics. What Does Gov. Walker Want?
Two weeks ago, Walker introduced the controversial "budget repair bill" - an "emergency measure" he said was needed to bridge Wisconsin's $137 million deficit.
Walker claimed the bill, which would require state employees to increase their pension and health insurance contributions, will save the state about $30 million for the current fiscal year.
But the governor's proposal has drawn the ire of critics for two major reasons:
What Really Matters for State Budgets
By Derek Thompson - TheAtlantic.com
Wisconsin's showdown over public sector unions is the launching pad for a wider debate about whether unionized government workers are bad for state budgets. You'd think higher paid state employees means more state government spending, which in a recession correlates with higher state budget shortfalls. But political scientist John Sides plots the relationship between state budget shortfalls and public union density and finds the correlation is nil.
[see chart]
This is an interesting if insignificant finding, as Mike Konczal writes, because public unions are an insignificant gauge of budget health nationwide. There are many roads to moderate budget health. For example, conservative governors of low-income, right-to-work southern states (WV, AL, MS) tend to have low public sector workforce, low overall spending, unfrothy bubble-era economies, and moderate budget crises today. Yet higher-income, more heavily unionized northeastern states (NY, PA, MA, RI) have the same moderate budget crises because they have strong economies and resilient tax income.
Cities, Inequality, and Wages
By Richard Florida - TheAtlantic.com
Economic inequality has been mounting in the United States, hitting levels not seen since the Gilded Age. There are numerous explanations for this phenomenon, ranging from the decline of unions and high-paid manufacturing jobs to the rise of globalization, of new technology, and knowledge-based work (what economists call "skill-based technical change") and the bifurcation of the labor market into high-skill and low-skill jobs.
But do our cities and changing economic landscape play a role as well? There are good reasons to suspect that they do. For one, the past decade or so has seen a sorting of population by skill, occupation and human capital, (see my 2006 article "Where the Brains Are"). For another, it is well known that both highly skilled and talented people and productive firms and high-tech industries tend to cluster and agglomerate together to create powerful economic advantages.
Koched Out of Their Skulls
Matt Welch - Reason.com
The Kochtopus is back in the news today, after alt-journalism prankster Ian Murphy of the Buffalo Beast called controversial Wisconsin Gov. Scott Walker pretending to be David Koch, and got 20 minutes of the governor's time. You can listen to the audio, read a partial transcript, and hear from Murphy over at Mother Jones. Longer transcript at the Beast if the website works.
For me the main takeaways were that A) Walker clearly wasn't personally familiar with Koch, B) he let most of the outrageous stuff bounce off him, sticking largely instead to the same kind of boilerplate you've heard from him on TV, with the main exception of C) this troubling exchange in which Walker says he "thought about" planting troublemakers among the protesters:
Yes, America Still Needs Unions
By Joe Conason - Truthdig.com
"There was once a need for unions, but they've outlived their purpose," said a nice lady interviewed on the radio in Tennessee just the other day. Annoyed by the spectacle of tens of thousands of teachers, firefighters, cops and other public employees rallying to protect their rights in Wisconsin, she was saying what more than a few Americans think about the labor movement.
They ought to think again - unless they want their children and grandchildren to become the peons of a corporate oligarchy.
Behind the vague notion that unions are somehow obsolete is the suggestion that workers - and their families - are amply protected by the law's provisions prohibiting child labor and mandating minimum wages, safe working conditions, overtime pay and all the other standards that we now take for granted.
How Chris Christie Did His Homework
By MATT BAI - NYTimes.com
Like a stand-up comedian working out-of-the-way clubs, Chris Christie travels the townships and boroughs of New Jersey?, places like Hackettstown and Raritan and Scotch Plains, sharpening his riffs about the state's public employees, whom he largely blames for plunging New Jersey into a fiscal death spiral. In one well-worn routine, for instance, the governor reminds his audiences that, until he passed a recent law that changed the system, most teachers in the state didn't pay a dime for their health care coverage, the cost of which was borne by taxpayers.
Will Mideast Turmoil Hoist Gold to a New High?
By DAN BURROWS - DailyFinance.com
Gold bugs love bad news, and civil war in Libya, Africa's third-largest oil producer, couldn't have come at a better time. The pickup in the global economy and specter of central bank rate hikes helped knock the yellow metal off its lofty pedestal early in the year. Gold futures traded on the Comex division of the New York Mercantile Exchange (CME) lost more than a hundred bucks an ounce in January, and the precious metal looked like it was going into a full-blown correction.
As we said back when gold prices were on the way down, what a difference a month makes -- and now the same holds true on the way back up. Uprisings in Tunisia, Egypt and Libya -- and the potential for unrest in Bahrain, Algeria and (gulp) Saudi Arabia -- have pushed the price of gold back within striking distance of nominal all-time highs.
Long-term decline in Gold/Silver ratio to favor Silver
By Allen Sykora
(Kitco News) - The gold/silver ratio hit its lowest levels in 13 years this week, and as the bull market continues in precious metals, analysts look for it to fall further as silver outperforms due to the combination of investment and industrial demand.
Nevertheless, some look for the ratio to correct higher in the short to intermediate term. This is largely because of technically oriented factors and since safe-haven demand from large entities might favor gold as geopolitical turmoil continues in North Africa and the Middle East.
Gold, Silver set for further price appreciation
By Amrita Mashar
AHMEDABAD (Commodity Online): Since reaching new highs at the end of 2010 Gold and Silver have been sold off, and the selling has been particularly intense in beginning of the year 2011. The poor news on the economy is almost completely bullish for the precious metals.
From the price action in last month one might be falsely directed to believe that investment demand for the precious metals is waning. On the contrary the data analysis is quite reveals strong indications of growing shortages and furthermore that the Gold and Silver markets are approaching tipping points that will lead to a rushing of price appreciation in coming months.
Silver Market Hit Hard With Bear Raid The Infamous Dr. Evil Strategy
JESSE'S CAFÉ AMÉRICAIN
Yesterday I said:
"Today was the option expiration on the Comex, and those options which are 'in the money' and have not been settled for cash are now converted to March futures positions.
Depending on the size and distribution of those conversions we may see some 'action' in the front month because they are sometimes notoriously weak hands and will receive at least one 'gut check.'"
And a gut check to run the stops was very obviously delivered in the afternoon trading session at the Comex and across the monthly contracts.
This is remniscent of the 'Dr. Evil' strategy that got Citi warned and fined in Europe a few years ago. Memories of Citi's Eurobond Manipulation At the time one of the defenses offered by an ex-pat trader was 'in the US everybody does it.' Has JPM taken up the trading strategy that Citi once made infamous? And why would banks be trading for themselves in markets with players they help to finance, and with public money?
Huge COMEX Silver Supply Squeeze Developing
By Patrick A. Heller - Coin Update News
As the December 2010 COMEX silver contracts approached maturity, a higher than normal number of contracts were not closed out before the first day of notice for delivery. In theory, potentially all of these open contracts could have ended up being called for delivery. While a number of short sellers absorbed their losses by purchasing an offsetting long contract, the amount of silver that was needed for physical delivery did stress available COMEX inventories.
As a result, in November and December 2010 the price of silver jumped more than 30%.
This same pattern looks like it will repeat for the maturing March 2011 COMEX silver contracts. This time, however, the potential supply squeeze is much larger.
Silver Investing Hits "Irrational Exuberance" as Price Swings 5.4%
Adrian Ash - SilverBearCafe.com
Gold and Silver Investing prices whipped sharply in London trade Tuesday morning, as New Zealand's second-biggest city Christchurch was struck by an earthquake and Libyan dictator Colonel Gaddafi's defiant TV appearance was followed by accusations of "genocide" and "the government killing its people" by his own United Nations and Washington-based diplomats.
Silver dropped nearly $2 per ounce, erasing Monday's 5.4% gain, only to rally again as world stock markets and commodity prices also hit massive volatility.
Brent crude oil rose above $107 per barrel. US oil contracts were set to re-open New York trade after Presidents Day with a near 8% jump.
"Problems in the Middle East are leading to a rise in Silver Prices," reckons Suresh Hundia, president of the Bombay Bullion Association, speaking to the Hindustan Times.
The True Cost of High Oil
by Mad Hedge Fund Trader - OilPrice.com
Economists are furiously downsizing their economic growth forecasts for 2011 in the wake of the oil price spike, both for the US and for the world at large. Since last week, West Texas crude prices have soared $12 from $86 to $98. Each $1 increase in the price of oil jumps gasoline prices by 2.5 cents. Each one cent rise in the cost of gasoline takes $1 billion out of the pockets of consumers.
If oil stays at this price, it removes $30 billion from the pockets of consumers. At $110/barrel, it short changes them by $60 billion, or 4.1% of GDP. Subtract this out from even the most optimistic GDP forecasts for this year, and you end up with negative numbers. That, my friends, is what they call a recession. If you wonder why hedge fund managers have lurched into an aggressive "RISK OFF" mode, are throwing their babies out with the bathwater, and why the volatility index is spiking to three month highs, this is why.
The End of the US Dollar?
By By: David Chapman - GoldSeek.com
The turmoil across North Africa and the Middle East is threatening not only to overthrow aging dictatorships, autocracies and monarchies, but also to upset the geopolitical balance between the countries of that region and the Western powers that has existed since at least the 1950s. For the West, the issue has always been the security of oil. For the US there is a second issue, and that is the security of Israel. Now both are under threat.
Some 56 per cent of the world's oil reserves are in the Middle East, with another nine per cent in Africa. Therefore, unrest in the region could be the catalyst that sets off a global monetary-oil shock. The unrest in Libya has sparked a sharp rise in oil price. Libya holds the world's ninth-largest reserves and is the twelfth-largest exporter, providing about two per cent of the world's daily oil supply. Not large and it is possible that Saudi Arabia could pick up the slack but it sends out a wave of uncertainty and it is unknown where the next outburst might occur.
QE2: The Road to a Gold Standard
By: Jim Willie CB - GoldSeek.com
What an incredible few weeks with global uprisings! It is not all too surprising that social eruptions over food prices come from the Arab world, since they spend up to 75% to 80% of income on food for basic needs. What proof that the global economy is not a closed system! The QE and QE2 initiatives have spread like a powerful virus, leading to global commodity prices heading upward and quickly. Even cotton is up 170% in price. The USFed has suffered even more credibility blows, calling the global food price inflation unrelated to its QE2 policy. It is obviously connected. What we have is the Western Big Banks protected from fraud prosecution, redeemed for their broken toxic balance sheets at government expense, leading to a global price tag in the form of foodstuffs and commodities. Worse, the USGovt and USFed continue to be run by fraud kings, who continue to maintain a tight strangehold on the purse of the state and the Printing Pre$$ itself that produce deficit spending and fresh phony money. Ironically, the punishment for the US banking system is chronic unending insolvency. Despite the largesse to prop them up, fund their channels, redeem their toxic debt, enrich their executive packages, they remain the same Zombie banks from late 2008. Tragically, the USGovt will continue to fund their black holes instead of restructuring like Iceland, which is back on its feet. The battle cry of Too Big To Fail for the Big US Banks is a call to sustain the corruption and to ensure no recovery ever!!
Stagflation 2011: Why It Is Here And Why It Is Going To Be Very Painful
TheEconomicCollapseBlog.com
Are you ready for an economy that has high inflation and high unemployment at the same time? Well, welcome to "Stagflation 2011". Stagflation exists when inflation and unemployment are both at high levels at the same time. Of course we all know about the high unemployment situation already. Gallup's daily tracking poll says that the U.S. unemployment rate has been hovering around 10 percent all year so far. But now thanks to rapidly rising food prices and the exploding price of oil, rampant inflation is being added to the equation. Normally inflation is a sign of increased economic activity, but when the basic commodities that we depend on to run our economy (such as oil) go up in price it actually causes a slowdown in economy activity. When the price of oil goes up high enough, it fundamentally changes the behavior of individuals and businesses. Suddenly certain types of economic activities that were feasible when oil was very cheap are not profitable any longer. When the price of oil rises to a new level and it stays there, essentially what is happening is that more "blood" is being drained out of our economy. Our economy will continue to function when there are higher oil prices, it will just be a lot more sluggish.
Currency Wars, Then and Now How Policymakers Can Avoid the Perils of the 1930s
By Liaquat Ahamed CFR - ForeignAffairs.com
In June 1933, a thousand representatives from 66 countries gathered in London for the World Economic Conference -- the grandest collection of world leaders since the Paris Peace Conference of 1919. Among those attending were a king, eight prime ministers, 20 foreign ministers, and 80 other cabinet ministers and heads of central banks.
The global economy was still mired in a depression that had begun more than three years earlier. In the two countries hardest hit, Germany and the United States, unemployment was above 30 percent. The United Kingdom, the nations of the British Empire, and a handful of other European countries with close commercial ties to London had abandoned the gold standard in late 1931, leaving exchange-rate arrangements in complete disarray. Meanwhile, Germany, after a banking crisis in the summer of 1931, had suspended payments on most of its international debts and imposed severe currency and capital controls.
Troubled banks rise to highest level in 18 years
By MARCY GORDON - AP - DailyFinance.com
WASHINGTON -The number of banks at risk of failing made up nearly 12 percent of all federally insured banks in the final three months of 2010, the highest level in 18 years.
The Federal Deposit Insurance Corp said Wednesday that the number of banks on its confidential "problem" list rose to 884 in the October-December quarter, up from 860 in the previous quarter. Those are banks rated by examiners as having very low capital cushions against risk.
Twenty-two banks have failed so far this year. And more banks are at risk, even as the FDIC reported the industry's highest earnings as a group since the financial crisis hit three years ago.
5 Dollar Gas? Get Ready To Pay An Arm And A Leg For Gasoline
TheEconomicCollapseBlog.com
One of the quickest ways to bring down the U.S. economy would be to dramatically increase the price of oil. Oil is the lifeblood of our economic system. Without it, our entire economy would come to a grinding halt. Almost every type of economic activity in this country depends on oil, and even a small rise in the price of oil can have a dramatic impact on economic growth. That is why so many economists are incredibly alarmed about what is happening in the Middle East right now. The revolution in Libya caused the price of WTI crude to soar more than 7 dollars on Tuesday alone. It closed at $93.57 on Tuesday and Brent crude actually hit $108.57 a barrel before settling back to $105.78 at the end of the day. Some analysts are warning that we could even see 5 dollar gas in the United States by the end of the year if rioting spreads to other oil producing nations such as Saudi Arabia. With the Middle East in such a state of chaos right now it is hard to know exactly what is going to happen, but almost everyone agrees that if oil prices continue to rise at a rapid pace over the next several months it is going to have a devastating impact on economic growth all over the globe.
Public Debt is Like a Giant Ponzi Scheme
By Bob Chapman - TheInternationalForecaster.com
Public debt has become a problem worldwide. What is becoming more and more evident is that it is unsustainable and simply unpayable. It could be compared to a giant Ponzi scheme. We see no meaningful debt reductions thus, government will have to raise taxes, which will further suppress the economy, or people and companies will be forced to buy such bonds, or perhaps pension and retirement funds will be seized to continue the game for a while longer.
The whole concept of government debt in the US, whether it's federal, state, municipal, corporate or personal stands on very shaky ground. Debt is serviced with revenues and income and when both are falling it is difficult to service. We have begun to enter a period of slowly rising interest rates. In the US the Fed has managed interest rates to be as low as possible to both aid in a recovery and to keep the financial edifice from collapsing. Over the past six months the bench mark 10-year Treasury note yield has risen from a yield of 2.20% to 2.74% and presently stands at about 3.60%. That 1.4% rise in rates has been offset by GDP growth of 3%. The problem is that such GDP growth has been maintained by growth in debt. The two sources of debt are the Fed and government. The Fed has been buying the government debt by creating money out of thin air. That is called monetization and it causes inflation.
FCC, Net Neutrality and the Future Enrons of the Internet
By Derek Lazzaro
America's largest Internet service providers, which own most of the network backbone, have decided that Internet content providers such as YouTube are using too much bandwidth, and becoming too rich, and now the ISPs are demanding a bigger piece of the pie. Amid surprisingly little public debate, the ISPs have engaged in a focused campaign to lobby Congress and win court cases with the goal of stripping the government of any meaningful authority to regulate their price structures or data-routing policies.
The question that remains is whether the government will have the authority, or even the will, to regulate the ISPs and the future of the Internet. If Republicans in the House of Representatives have their way, the battle will be over before it ever really begins, with the ISPs emerging as undisputed victors.
After Spending on Dubious Technology, U.S. Invokes State Secrets to Keep Details Hushed
by Marian Wang - ProPublica.org
Despite having clear rules on when not to invoke the state secrets privilege, the Justice Department has been blocking disclosures about a dubious technology that could prove embarrassing for the U.S. government.
As the New York Times reported over the weekend, a computer programmer who claimed his technology could help the U.S. track terrorists received at least $20 million in government contracts for this software, which intelligence officials suspected to be fake even in 2003. While contractor fraud isn't new, what's unusual here is that the U.S. isn't trying to recover those funds or penalize the contractor, Dennis Montgomery.
Instead, it's fighting in court to keep information about the technology secret, arguing that the details could compromise national security. The Times notes that the clampdown in this case started under the Bush administration and continued under Obama's Justice Department:
Why I Was Wrong About 'Dow 36,000' The world has changed since 1999. U.S. economic standing is now declining, and we have to account for risks not only to commerce but to the global order.
By JAMES K. GLASSMAN - WSJ.com
In 1999, I co-authored a book called "Dow 36,000" that became, in some circles, a notorious symbol for bullishness about the stock market. While the book had a provocative title, its fundamental message was mainstream: Long-term investors should load up on U.S. stocks.
For most periods of 10 years or more, shares of U.S. companies produced far greater gains than bonds, at much the same risk. Yes, stocks bounced wildly up and down, but your job as an investor was to hang on and collect your reward for perseverance at the end of the ride. So, like most sensible financial advisers, I told readers to tilt their retirement portfolios strongly toward stocks-but with an extra large dollop of optimism because stocks at the time seemed undervalued.
I was wrong.
What the Looming Inflation Tsunami Means for the U.S. Housing Market and Commodities
BY KERRI SHANNON, Associate Editor, Money Morning
A few weeks ago, Money Morning Contributing Editor Martin Hutchinson warned readers about the looming inflation tsunami threatening the United States.
Easy money policies like those of the U.S. Federal Reserve and other central banks have helped raise prices in emerging markets, as well as the United States, and sent the commodities sector surging.
"[W]e can expect inflation to be with us for several years, too," said Hutchinson. "In fact, expect it to get worse for the next three to four years, while Ben S. Bernanke remains at the helm of the nation's central bank."
As inflation threatens to eat away at the value of stocks and bonds and cut into investors' returns, Hutchinson said one of the best investments to make ahead of rising prices actually is a house.
Many Americans Incorrectly Believe Health Law Has Been Repealed
By Jordan Rau - KHN Staff Writer
A poll released Thursday found extensive public confusion about the health care law, with 22 percent of Americans incorrectly believing it has been repealed and another 26 percent unsure or unwilling to say.
The results come after the Republican-controlled House of Representatives voted to repeal the law last month, and two federal judges ruled the law was unconstitutional. After extensive media coverage of these events, only 52 percent of Americans accurately said the health care law, which passed last year, remained intact, according to the poll from the Kaiser Family Foundation. (KHN is a program of the foundation.)
The poll found that unfavorable views of the law among the elderly have risen to 59 percent, up from 40 percent in December. Republican opposition has grown over recent months, to 84 percent, while 66 percent of Democrats remain supportive and independents are divided. Republicans are more passionate in their opposition than Democrats are enthusiastic about the law.
How I Passed My U.S. Citizenship Test: By Keeping the Right Answers to Myself
by Dafna Linzer - ProPublica.org
Last month, I became an American citizen, a tremendous honor and no easy accomplishment, even for a Canadian. After living here for 12 years, I thought I knew everything. Then I learned how we mint Americans.
After years of steep filing fees and paperwork (including one letter from Homeland Security claiming that my fingerprints had "expired"), it all came down to a test. I passed, and, my fellow Americans, you could, too -- if you don't mind providing answers that you know are wrong.
Democracy Versus Liberty
Walter E. Williams - SilverBearCafe.com
It is truly disgusting for me to hear politicians, national and international talking heads and pseudo-academics praising the Middle East stirrings as democracy movements. We also hear democracy as the description of our own political system. Like the founders of our nation, I find democracy and majority rule a contemptible form of government.
You say, "Whoa, Williams, you really have to explain yourself this time!"
I'll begin by quoting our founders on democracy. James Madison, in Federalist Paper No. 10, said that in a pure democracy, "there is nothing to check the inducement to sacrifice the weaker party or the obnoxious individual." At the 1787 Constitutional Convention, Virginia Gov. Edmund Randolph said, "... that in tracing these evils to their origin every man had found it in the turbulence and follies of democracy." John Adams said, "Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There was never a democracy yet that did not commit suicide." Alexander Hamilton said, "We are now forming a Republican form of government. Real Liberty is not found in the extremes of democracy, but in moderate governments. If we incline too much to democracy, we shall soon shoot into a monarchy, or some other form of dictatorship."
Changes Are Coming -
Things We'll Be Saying Goodbye To
From Clark McClelland 12-25-10 - Rense.com
This is long, but most frightening...
CHANGES ARE COMING
Whether these changes are good or bad depends in part on how we adapt to them. But, ready or not, here they come.
The Post Office.
The Check.
The Newspaper.
The Book.
The Land Line Telephone.
Music.
Television.
The "Things" That You Own.
Privacy.
19 Facts About The Deindustrialization Of America That Will Blow Your Mind -- The United States is rapidly becoming the very first "post-industrial" nation on the globe. All great economic empires eventually become fat and lazy and squander the great wealth that their forefathers have left them, but the pace at which America is accomplishing this is absolutely amazing. It was America that was at the forefront of the industrial revolution. It was America that showed the world how to mass produce everything from automobiles to televisions to airplanes. It was the great American manufacturing base that crushed Germany and Japan in World War II.
Boeing Wins Contract to Build Air Force Tankers
By CHRISTOPHER DREW - NYTimes.com
In a surprise twist in a long-running saga, the Air Force on Thursday awarded a $35 billion contract for aerial fueling tankers to Boeing rather than to a European company that builds Airbus planes, according to aides to lawmakers and industry executives who were briefed on the decision.
Boeing and its supporters in Congress had seemed in recent days to give up hope of winning the contest, and the decision could settle a titanic struggle between the world's largest plane builders.
Iran claims two new supercomputers After Stuxnet attacks damaged its computer systems, Iran tries for an IT comeback via supercomputing
By Patrick Thibodeau
Computerworld - WASHINGTON -- Iran's government is claiming that it has developed two new supercomputers powerful enough to earn rankings on the Top500 list of the world's most powerful systems.
The supercomputing announcement, made Wednesday, is being treated as a big deal in Iran and involves top Iranian government officials, including President Mahmoud Ahmadinejad.
If this announcement was made by any country other than Iran, it would get little attention. The larger of the two systems is far, far behind the current top-ranked system in China.
Lindsey Williams:
China Rising and The Way of Life Here in America Will End!!
Alex Jones Tv 1/4
Lindsey Williams:
China Rising and The Way of Life Here in America Will End!!
Alex Jones Tv 2/4
Lindsey Williams:
China Rising and The Way of Life Here in America Will End!!
Alex Jones Tv 3/4
Lindsey Williams:
China Rising and The Way of Life Here in America Will End!!
Alex Jones Tv 4/4
On prank call, Wis. governor discusses strategy
By RYAN J. FOLEY Associated Press - Houston Chronicle
MADISON, Wis. - On a prank call that quickly spread across the Internet, Wisconsin Gov. Scott Walker was duped into discussing his strategy to cripple public employee unions, promising never to give in and joking that he would use a baseball bat in his office to go after political opponents.
Walker believed the caller was a conservative billionaire named David Koch, but it was actually the editor of a liberal online newspaper. The two talked for at least 20 minutes - a conversation in which the governor described several potential ways to pressure Democrats to return to the Statehouse and revealed that his supporters had considered secretly planting people in pro-union protest crowds to stir up trouble.
Koch Whore: Wisconsin Gov. Scott Walker
The BEAST's Ian Murphy calls Walker, posing as archconservative moneybags David Koch, and they casually discuss crushing all public unions.
Koch Whore: Wisconsin Gov. Scott Walker, part 2
Troopers would 'absolutely' use force on Wisc. protesters if ordered, police union president tells Raw
By Stephen C. Webster - TheRawStory.com
But: 'That would not be something I recognize as the United States of America,' state patrol inspector adds
Amid the largest protests Madison, Wisconsin has seen in decades, newly elected Republican Gov. Scott Walker last week issued a stark message to public labor unions occupying the capitol building: we have options, and using the National Guard against protesters is among them.
Since then, a myrad of rumors have circulated through crowds gathered at the state capitol, united in protest of a bill that would strip public unions of their collective bargaining rights. One rumor, which had not yet come to pass, even suggested that like Egypt's former dictator did in Tahrir Square, Gov. Walker may call in police to forcibly clear out the capitol.
Union Protest 2/22/2011 Madison Wisconsin
Wisconsin Union Protest--
Boston, Mass. Solidarity Rally: Feb. 22, 2011
Gov. Christie Brags About State Layoffs: 'Unions Are Trying To Break The Middle Class'
By Pat Garofalo - Current.com
Gov. Scott Walker (R-WI) has been gaining lots of attention at the moment for his attempt to strip collective bargaining from many of his state's public employees, essentially busting their union legislatively. But he is far from alone among Republican governors in trying to take a pound of flesh from his state's working people.
USA Today recently said that New Jersey has shed by percentage more public sector jobs in the last year than any state in America. And the reason we've done this is because our government was bloated and too big at every level... In New Jersey, we're not trying to break the unions, the unions are trying to break the middle class in New Jersey, through the expenses. And they're close to doing it.
Christie: Unions Are Trying To Break The Middle Class
'Use live ammunition' against Wisconsin protesters,
Indiana official says
By David Edwards - TheRawStory.com
One official in Indiana suggested over the weekend that riot police should use deadly force on those protesting Wisconsin Republican Gov. Scott Walker's plan to strip unions of their rights.
A Saturday tweet from Mother Jones reported on the likelihood that police would soon be clearing the Wisconsin Capitol building of demonstrators.
"Use live ammunition," a Twitter user named JCCentCom replied.
When confronted, the Twitter user stood by his words, insisting that the protesters were "political enemies" and "thugs."
As Wisconsin's Scott Walker, unions do battle, what's at stake? Public employee unions are pitted against lawmakers in Wisconsin and other Midwest states. Here's a primer on a growing conflict that mixes economics and politics with labor and management rights
By Michael Muskal, Los Angeles Times
Wisconsin Gov. Scott Walker and unionized public employees have squared off in a battle that mixes economics and politics with labor and management rights. Similar battles have spread to Indiana and Ohio. Here is a primer to understanding the crisis sweeping parts of the Midwest.
What is happening in Wisconsin?
Wisconsin Gov. Scott Walker proposed charging public employees more for their health insurance and pension benefits, setting off a firestorm of demonstrations, now in their second week. It also prompted all Democratic senators to flee the state, in effect blocking any action on the proposals. As part of the package, Walker also called for eliminating the right of unionized government workers to bargain collectively. Ohio and several other states with new Republican governors and legislatures are considering similar measures as a way to solve budget woes.
Obama Sits Out State [vs. Union] Fights
By JONATHAN WEISMAN - WSJ.com
President Barack Obama, after initially lending his support to organized labor, has stepped back from the fights spreading in state capitals from Wisconsin to Tennessee, leaving union officials divided about his tactics.
Democratic officials said that with Mr. Obama heading into battles over the federal budget, a plunge into the fray over public-sector collective bargaining could weaken his position as a deal-maker in Washington.
Mr. Obama is eager to occupy the political center, Democratic officials said, to help him forge a bipartisan deal on the nation's long-term finances that could strengthen his position heading into the 2012 election. Mr. Obama has already tacked to the center on taxes, on trade and by working to forge stronger ties with business leaders.
Walker's War on Unions Has Nothing to Do With This Year's Deficit
By Derek Thompson - TheAtlaintic.com
Wisconsin Gov. Scott Walker's assault on collective bargaining has won him cheers on the right and jeers on the left. But no matter what you think of unions, you can't call this part of the plan "deficit reduction."
Not this year, anyway.
The state's entire $137 million budget shortfall for 2012 is basically covered by the governor's quiet proposal to restructure the state's debt to the save $165 million in the short term. In other words, unions have nothing to do with closing this year's budget shortfall. Stripping the collective-bargaining rights of the state's public-employees doesn't save Wisconsin anything today. National Journal's Tim Fernholz explains:
In January, the Wisconsin Legislative Fiscal Bureau reported that the state would face a $137 million shortfall before the end of the fiscal year on June 30. The governor's budget repair bill proposes a debt restructuring that would save the state $165 million in the near term, more than covering the shortfall.
Governor Calls Wisconsin 'Broke' in Arguing for Union Bill
By Mark Niquette
Feb. 23 (Bloomberg) -- Wisconsin Governor Scott Walker appealed to the public to support his bill that would restrict collective bargaining for government workers, saying that the state's future depended on it.
"We're broke in this state because time and time again, politicians of both political parties ran away from the tough decisions and punted them down the road for another day," Walker said in a 10-minute televised address yesterday. "We can no longer do that."
AWOL Democrats From Wisconsin, Indiana Flock to Illinois
By Mark Niquette and Stephanie Armour - BusinessWeek.com
Feb. 23 (Bloomberg) -- Illinois has become a haven for Midwestern Democratic lawmakers fleeing their states to stall votes on Republican-backed bills restricting union rights.
Fourteen senators left Wisconsin last week for the Chicago area to prevent the quorum needed to vote on a bill limiting collective bargaining for public employees. Most of Indiana's Democratic House members are in Urbana for the same reason.
The absent lawmakers have no plans to return today, B. Patrick Bauer, the Democratic House minority leader, said in a conference call today from the Comfort Suites in Urbana. The state party is paying for the lodgings of the 37 House members who left, he said.
"It's never been seen before in this state," Bauer said. "You've never seen this kind of class war."
Democrats, Republicans in Budget Standoff as Shutdown Looms
By Julie Hirschfeld Davis - BusinessWeek.com
Feb. 23 (Bloomberg) -- Congressional Republicans and Democrats are preparing dueling plans to avert a U.S. government shutdown early next month as both sides have refused so far to budge in their standoff over spending cuts.
Senate Majority Leader Harry Reid, a Nevada Democrat, said he will bring up a temporary spending measure next week to keep the government operating at current levels into early April and buy time for talks on a longer-term plan.
Democrats oppose the House Republicans' spending plan, passed Feb. 19, saying its $61 billion in cuts will harm the economy and the nation's security. The White House has said that President Barack Obama would veto the measure, which would fund the government through Sept. 30.
Egypt's 'Day of Rage' not inspired by Chicago rampage Egypt's 'Day of Rage' has a familiar ring in Chicago. But the phrase has Arab, not American, roots and the outcomes of the protests are worlds apart.
By Kim Murphy, Los Angeles Times
Reporting from Amman, Jordan - When the young Egyptian activists plotting President Hosni Mubarak's downfall summoned people to revolt on Jan. 25, they announced a Youm al Ghadad, a "Day of Rage," in which the masses would pour into the streets and tell authorities they'd had enough.
Half a world away, in Chicago, the call had a familiar ring to it.
In another era, for another struggle, a group of young men and women who called themselves the Weathermen had put out the call to bring the war in Vietnam home in all its ferocity to the moneyed streets of Chicago's Gold Coast and other neighborhoods. The four-day rampage became known as the "Days of Rage."
Gadhafi Flails as Libya Splinters
By ANGUS MCDOWALL in Dubai, MARGARET COKER in Cairo and CHARLES LEVINSON in Baida, Libya - WSJ.com
Forces loyal to strongman Col. Moammar Gadhafi imposed rough order in Libya's increasingly fearful capital Wednesday, witnesses said, that stood in sharp contrast to rebel gains in much of the oil-rich country.
Gunshots echoed through the night in Tripoli as Col. Gadhafi clung to power even as the international community discussed ways to isolate him with sanctions. More territory slipped from his control, and rebels began to set up rudimentary governments in outlying areas under their sway. "No-one should count him out, but momentum isn't going his way," a U.S. official said.
Gaddafi Threatens to Torch Libya's Oil
By Addison Wiggin - DailyReckoning.com
02/23/11 Baltimore, Maryland - Yikes... Oil is up again this morning. West Texas Intermediate has blasted up to $96.78. (Barely a week ago, it was $85.) Brent is up to $109.02.
According to Reuters, Libyan oil production is already down to three-quarters of normal. And that could soon plunge to zero... If it's true that a desperate Col. Gaddafi is looking to torch the pipelines leading from his country's oil fields to Mediterranean ports.
"Gaddafi has ordered security services to start sabotaging oil facilities," a source close to the regime tells Time intelligence columnist (and former CIA case officer) Robert Baer. "The sabotage, according to the insider, is meant to serve as a message to Libya's rebellious tribes: It's either me or chaos."
LIBYA: Moammar Kadafi may sabotage oil pipelines, report says
By Garrett Therolf - LATiimes.com
Worry spread Wednesday that Moammar Kadafi has ordered security forces to destroy his country's valuable oil pipelines after a report in Time magazine.
The report, from Time columnist Robert Baer, was repeated on television networks throughout the region and cited an anonymous source close to the Kadafi regime saying the strongman has ordered the security services to start sabotaging oil facilities, cutting off flow to the Mediterranean ports.
Libya: Defections leave Muammar Gaddafi isolated in Tripoli bolthole
By Ian Black, Middle East editor - guardian.co.uk
Muammar Gaddafi was looking increasingly isolated after damaging defections by senior regime figures and key military commanders and units as the uprising spread closer to Tripoli.
Malta denied a report that Gaddafi's daughter, Aisha, was on board a Libyan plane refused permission to land on the island on Wednesday. But Menas, a respected London Middle East consultancy, said the leader's wife, daughter, daughters-in-law and grandchildren had left Libya for an unknown destination.
Mass protests erupted in Misurata, a Mediterranean port and the country's third-largest city, and violence was reported in Sebrata and Zawiya, which are also in western Libya and closer to Tripoli.
Barack Obama tells Gaddafi: Libya violence must stop US president finally breaks silence on Libya to condemn ruling regime and make threat of sanctions
By Ewen MacAskill in Washington and agencies - The Guardian
Barack Obama has warned the Libyan leader Muammar Gaddafi that he faces the prospect of international sanctions over violence against demonstrators, and condemned Gaddafi's actions as outrageous and unacceptable.
Obama is sending secretary of state Hillary Clinton to Europe to discuss what actions can be taken to stop the violence, and to take part in a meeting of the Human Rights Council in Geneva.
The US president took care to maintain balance in his pronouncements over the uprisings in Egypt. By contrast, this statement was unequivocal in its criticism of Gaddafi's actions. Obama promised that the Libyan leader would be held accountable.
U.S. Fears Tripoli May Deploy Gas As Chaos Mounts
By JAY SOLOMON - WSJ.com
WASHINGTON - The government of Col. Moammar Gadhafi hasn't destroyed significant stockpiles of mustard gas and other chemical-weapons agents, raising fears in Washington about what could happen to them - and whether they may be used - as Libya slides further into chaos.
Tripoli also maintains control of aging Scud B missiles, U.S. officials said, as well as 1,000 metric tons of uranium yellowcake and vast amounts of conventional weapons that Col. Gadhafi has channeled in the past to militants operating in countries like Sudan and Chad.
Current and former U.S. officials said in interviews that Washington's counterproliferation operations against Libya over the past decade have scored gains, in particular the dismantling of Tripoli's nascent nuclear-weapons program and its Scud C missile stockpiles. But the level of instability in Libya, and Col. Gadhafi's history of brutality, continues to make the U.S. focus on the arms and chemical agents that remain, they said.
Sheikh Qaradawi Seeks Total War
By Jeffrey Goldberg - TheAtlantic.com
Mark Gardner and Dave Rich did yeoman's work not long ago, analyzing the Egyptian cleric Sheikh Yusuf Qaradawi's 2003 book, Fatawa Min Ajl Falastin, or Fatwas on Palestine, and came to the conclusion that this putatively moderate Islamic cleric argues clearly and consistently that hatred of Israel and Jews is Islamically sanctioned, and that the destruction of Israel is mandated by God:
Qaradawi underlines the need for Muslims all over the world to involve themselves in the Israel/Palestine conflict when he goes on to discuss the question of Jerusalem:
The Palestinians do not have the competence to decide on the fate of Jerusalem without resorting to the Muslims all over the world. This, consequently, makes it obligatory upon every Muslim wherever he is to defend Jerusalem, and al-Aqsa Mosque. This is an obligation upon all Muslims to participate in defending Jerusalem with their souls, money, and all that they possess, otherwise a punishment from Allah shall descend on the whole nation...
Bahrain King in Saudi Arabia to Discuss Unrest
By MICHAEL SLACKMAN and NADIM AUDI - NYTimes.com
MANAMA, Bahrain - A day after one of the largest pro-democracy demonstrations this tiny Persian Gulf nation had ever seen, its king was in Saudi Arabia, a close ally and neighbor, to discuss the unrest engulfing the region.
The visit of King Hamad bin Isa al-Khalifa on Wednesday, reported by The Associated Press, came just as the aging Saudi ruler, King Abdullah, returned to the country after three months of medical treatment in the United States and Morocco.
Even before King Abdullah landed in Riyadh, the capital, the Saudi government announced that it would pour billions of dollars into a fund to help its citizens marry, buy homes and start their own businesses, The Associated Press reported, citing state television. Reuters said the package was estimated at $35 billion.
More Tales of Revolution and Government Waste
By Joel Bowman - DailyReckoning.com
02/23/11 Baltimore, Maryland - Tunisia... Egypt... Libya... a half dozen others on the brink
While restless masses across the Middle East and North Africa region are struggling to realize democracy in their own lands, many here in the USA are just now waking up to some of the not-so-pleasant effects of it. The expression of discontent is more or less the same in each country. The results? Well, we'll have to wait and see...
In the beginning, democracy seems a virtuous and decent enough solution to autocratic tyranny. And it is... so long as the process is populated with virtuous and decent people. During the seeds of revolution, dictators are quickly overthrown and the people usually obtain a "voice" through the ballot box.
Everyone feels part of the progress, part of the plan. Love, hope and jasmine. All that good stuff.
Hundreds back Facebook call for Saudi protest
DUBAI, Feb 23 (Reuters Africa) - Hundreds of people have backed a Facebook campaign calling for a "day of rage" across Saudi Arabia next month to demand an elected ruler, greater freedom for women and release of political prisoners.
The page called for a "revolution of yearning" on March 11 in the kingdom, the world's biggest oil exporter and which is ruled by an absolute monarchy.
More than 460 people had endorsed the page by Wednesday morning, but it was impossible to verify how many of them were inside Saudi Arabia or whether any protest would materialise.
Gold Advances, Approaching Record, on Oil Gain, Mideast Tension
By Kim Kyoungwha
Feb. 24 (Bloomberg) -- Gold climbed for a second day, edging closer to an all-time high, as mounting geopolitical tension boosted oil prices and fanned inflation concerns, increasing investment demand for precious metals.
Bullion for immediate-delivery rose 0.2 percent to $1,414.40 an ounce at 8:56 a.m. in Singapore. Futures for April delivery also increased 0.2 percent, to $1,414.60 an ounce. Gold rose for a 10th year in 2010, touching a record $1,431.25 on Dec. 7, as investors sought to preserve their wealth against currency debasement and rising inflation.
"Escalating unrest in Libya and rising oil prices have encouraged gold safe-haven buying and fueled concerns over inflation, which also benefits gold," Mark Pervan, senior analyst with ANZ Banking Group Ltd., wrote in a note to clients.
Gold recovers as Arab world crisis escalates
SINGAPORE (Commodity Online): Gold prices recovered in Asian trade Wednesday after an overnight dip as escalating Arab world crisis continued to support the precious yellow metal.
Spot gold was seen trading at $1396.37 an ounce at 1.00 p.m Singapore time while Futures for April delivery was at $1,398.29 an ounce.
Analysts said the bullion is likely to rebound as apart from Middle East crisis, bargain buying by investors following recent dips might also support the yellow metal.
These situations are likely to offset falling equity markets and a drop in ETF holdings that may affect the bullion negatively, they said.
Oil Prices Surge to Two-Year High on Middle East Turmoil
BY DON MILLER, Associate Editor, Money Morning
Protests in the Middle East drove oil prices to a two-year high yesterday (Tuesday) as anti-government violence spread in Libya, threatening the nation's oil industry and raising the possibility the contagion could soon affect larger producers in the region.
Oil jumped more than $7 a barrel, breaching $98 for the April contract of West Texas Intermediate (WTI) crude on the New York Mercantile Exchange. Meanwhile, Brent crude climbed as much as 2.7% to $108.57 on the ICE Futures Europe Exchange.
Oil Price Spikes as Tensions in Libya Heat Up
By Addison Wiggin
02/22/11 Baltimore, Maryland - Tunisia? Nah, not so much. Egypt? Meh. Bahrain? Almost. It took Libya to really get a rise out of the markets.
Or a fall, depending on what asset class you're looking at today.
Only Libya ranks high enough on the list of the world's top oil exporters to register a reaction. The CIA Factbook ranks the desert nation No. 15 in exports: (see chart)
Bahrain, by contrast, ranks No. 49. But sitting, as it does, close to Iran, the island nation gets a few extra brownie points for strategic importance.
Shell, BP and Marathon are but a few of the international oil companies pulling their workers out of Libya and shutting down operations. ExxonMobil, ConocoPhillips and Occidental haven't said much more than "no comment."
Oil Rallies to $100, Stocks Retreat on Libya Revolt; Euro Gains
By Stephen Kirkland and Rita Nazareth - BusinessWeek.com
Feb. 23 (Bloomberg) -- Oil rallied, touching $100 a barrel in New York for the first time since October 2008, as Libya's uprising threatened to halt exports. Stocks fell amid concern higher energy costs will slow economic growth, while Treasuries dropped after a $35 billion auction.
Crude for April delivery settled at $98.10 after surging as much as 4.8 percent to $100. Gasoline and heating oil also jumped. The Standard & Poor's 500 Index slid 0.6 percent as of the 4 p.m. close in New York after tumbling 2.1 percent yesterday, the most in six months. Hewlett-Packard Co. led losses in equities after its forecasts trailed analysts' estimates. Sugar and cotton dropped more than 1.9 percent. The euro gained on prospects for higher interest rates.
World Economy Can Survive Oil Price Surge for Now, IMF Says
By Simon Kennedy and Lizzie O'Leary
Feb. 22 (Bloomberg) -- The world economy can withstand the surge in oil prices sparked by unrest in the Middle East and North Africa so long as the increase proves short-lived, said the International Monetary Fund's No. 2 official, echoing Deutsche Bank AG and Bank of America Merrill Lynch.
Futures for April delivery climbed to within $2 of $100 a barrel in New York today, and London-traded Brent rose to $108.57, close to the highest since September 2008, as escalating violence in Libya stoked concern supplies from the region will be disrupted. Oil in New York has gained almost 6 percent since Jan. 24, the day before the first anti-government protests erupted in Egypt.
Oil could hit $220 a barrel on Libya and Algeria fears, warns Nomura Libya's descent into civil war has led to drastic cuts in oil shipments and prompted warnings that an escalation of the crisis could see Brent crude prices double to $220 a barrel.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Nomura's commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.
On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.
"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank's oil strategist.
Oil May Surge to $220 If Libya, Algeria Halt, Nomura Says
By Grant Smith
Feb. 23 (Bloomberg) -- Oil prices may surge to $220 a barrel if political unrest in North Africa halts exports from Libya and Algeria, Nomura Holdings Inc. said.
Crude futures rose to almost $100 in New York today, the highest in more than two years, as violence in Libya threatened to disrupt exports from Africa's third-biggest supplier. Libyan leader Muammar Qaddafi vowed yesterday to fight a growing rebellion until his "last drop of blood." Protests in Algeria led to the ending of a 19-year state of emergency.
Saudis Said to Be Willing to Pump More Oil Without OPEC Meet
By Ayesha Daya
Feb. 23 (Bloomberg) -- Saudi Arabia and some other producers are willing to put more oil on the market if buyers demand it even if no emergency OPEC meeting is held, said a person with knowledge of producer-nation policy.
Exporters are under pressure to ensure adequate supplies to the market after violence in Libya, Africa's third-largest producer, sent New York crude futures to $100 a barrel today for the first time since October 2008.
Any extra supply would be conditional on requests for more crude from oil companies, said the person, on condition of anonymity.
Could revolt spread in Africa?
Reuters.com
So far there hasn't been much political fallout in the rest of Africa from the revolts in the northernmost states.
Of course there are lots of differences between sub-Saharan African countries themselves let alone when you compare them to those north of the desert.
But there are plenty of similarities too: the rest of Africa can point to those leaders entrenched for decades, to so-called democracies where ballots are no more than a waste of paper and to a lack of opportunities for youths even where official growth figures appear startlingly good.
Could the revolt against Libya's Muammar Gaddafi change that dynamic in some places?
After all, he is the man who was once crowned "King of Kings" of Africa by a group of friendly traditional leaders.
Obama's dangerous debt dodge
By James Pethokoukis - Reuters.com
Americans need to fully grasp just how scary dangerous the nation's debt problem really is. Washington sure won't deal it unless given a firm shove by voters. The tea party needs to get a lot bigger.
So President Barack Obama does them no favor by downplaying debt interest costs to make his budget look better. While his focus on the "primary deficit" - the budget shortfall not counting debt payments - can provide a helpful fiscal snapshot, it ultimately misleads as to the true scope of the challenge.
Geithner Says Financial System Stronger Than Before Crisis
By Rich Miller
Feb. 23 (Bloomberg) -- The U.S. financial system is in better shape than it was before the recession and is well placed to provide the funding needed for the economic expansion, Treasury Secretary Timothy F. Geithner said.
"The core of the American financial system is in a much stronger position than it was before the crisis," Geithner said today during a Bloomberg Breakfast with reporters in Washington.
U.S. banks had net income of $87.5 billion in 2010, the highest since 2007, the Federal Deposit Insurance Corp. said today. The Standard & Poor's 500 index has jumped 64 percent since March 2009, and corporate bond spreads have narrowed.
Treasuries Snap Decline as Investors Seek Safety, Fed to Buy
By Wes Goodman
Feb. 24 (Bloomberg) -- Treasuries snapped a decline from yesterday as violence in Libya bolstered demand for the safest assets and the Federal Reserve prepared to buy government securities today.
Sovereign bonds around the world trimmed losses from earlier in the month as loyalists of Libyan leader Muammar Qaddafi sought to crush dissent in the capital Tripoli. The Fed is scheduled to purchase $4 billion to $6 billion of Treasuries due from August 2012 to August 2013.
"People are looking at the Middle East and North Africa, and that caused a flight to safety," said Satoshi Okumoto, a general manager in Tokyo at Fukoku Mutual Life Insurance Co., which has the equivalent of $68 billion in assets.
*****
Kansas City Federal Reserve Bank President Thomas Hoenig calls for Wall Street banks to be broken up A member of the US Federal Reserve has called for Wall Street's financial giants to be broken up to avoid another another crisis.
By Andrew Trotman - Telegraph.co.uk
"I am convinced that the existence of too-big-to-fail financial institutions poses the greatest risk to the US economy," Kansas City Federal Reserve Bank President Thomas Hoenig said.
"They must be broken up. We must make sure that large financial organizations are not in position to hold the US economy hostage. We must not allow organisations operating under the safety net to pursue high-risk activities and we cannot let large organisations put our financial system at risk."
Mr Hoenig also argues that the most sweeping overhaul of US financial regulation since the Great Depression won't prevent the largest banks from taking excessive risks and increasing market share.
Arizona Bill Would Void Foreclosures Without Full Title History
By Prashant Gopal
Feb. 23 (Bloomberg) -- Arizona may become the first state to require lenders to prove they have the right to foreclose by providing a complete list of any previous owners of the mortgage, under a bill passed yesterday by its Senate.
The legislation, which is headed to the House after being approved 28-2 in the Republican-dominated Senate, would allow foreclosure sales to be voided if lenders that didn't originate the loan can't produce the full chain of title. Arizona permits nonjudicial foreclosures, meaning property can be seized from the homeowner without a court order.
Providence faces shortfall, teachers to get dismissal notices
By Linda Borg - Providence Journal
PROVIDENCE, R.I. -- The school district plans to send out dismissal notices to every one of its 1,926 teachers, an unprecedented move that has union leaders up in arms.
In a letter sent out to all teachers Tuesday, Supt. Tom Brady wrote that on Thursday the Providence School Board will vote on a resolution to dismiss every teacher, effective the last day of school.
In an e-mail sent to all teachers and School Department staff, Brady said, "We are forced to take this precautionary action by the March 1 deadline given the dire budget outline for the 2011-2012 school year in which we are projecting a near $40 million deficit for the district," Brady wrote. "Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff."
Food-Price Threat Worsened by Government Mistrust of Business Government Wariness of Business Blocks Food Solution, Olam Says -- By Yuriy Humber and Luzi Ann Javier
Feb. 24 (Bloomberg) -- Governments need to overcome their suspicion of food companies to tackle record prices that are fuelling global instability, Olam International Ltd. Chief Executive Officer Sunny Verghese said.
"They basically see us as people that are likely to take advantage of the situation," said Verghese, whose Singapore- listed company is one of the world's three biggest rice traders. "Serious participants in this industry are responsible players and they don't care for one-year or two-year time horizons. We want to build a long-term, sustainable business."
Hope of finding more survivors fades in Christchurch earthquake wreckage Death toll confirmed at 76, but numbers expected to rise as bodies uncovered, New Zealand PM warns
By Toby Manhire in Christchurch and Peter Walker - guardian.co.uk
Hope is fading that many more survivors will be recovered from the wreckage of central Christchurch, with fears for more than 300 people still missing after Tuesday's 6.3-magnitude earthquake.
The death toll was confirmed at 76, but the number is expected to rise significantly as more bodies are uncovered. Around 120 people have been rescued, but reports of fresh "live searches" on Thursday morning appeared unfounded by the afternoon.
Inflation Concerns Rise Around Asia Vietnam, Singapore Data, India Rally Underscore Challenges in Price Fight -- By PATRICK BARTA And GEETA ANAND - WSJ.com
Worries over inflation in Asia intensified as tens of thousands of people protested rising food prices in India and inflation rates jumped higher in Singapore and Vietnam.
Big street rallies aren't uncommon in India, where millions of people subsist on low incomes. Moreover, similar protests have occurred in past years ahead of the Indian government's annual presentation of its budget, which this year is scheduled for Monday.
*****
Countdown to Real ID National conference of State Legislatures
The REAL ID Act requires state-issued driver's licenses and identification cards to meet federal standards by a certain date in order to be accepted for federal purposes. What is that date? All 56 U.S. jurisdictions received an initial extension through Dec. 31, 2009, from the Secretary of the DHS. On Friday, Dec. 18 2009, the secretary issued a statement to waive that deadline. States must now be in full-compliance by May 2011.
While DHS estimated that the implementation of REAL ID will cost states $3.9 billion.
Excellent 5-part interview - Lindsey give history of oil, OPEC, dates, places and events leading up to oil situation today; but focus on China/Russia and the NWO destruction of the dollar and America:
Lindsey Williams Exclusive:
Nwo to Target Iran & Saudi Arabia Next
Oil to Hit $200 a Barrel 1/5
Lindsey Williams Exclusive:
Nwo to Target Iran & Saudi Arabia Next
Oil to Hit $200 a Barrel 2/5
Lindsey Williams Exclusive:
Nwo to Target Iran & Saudi Arabia Next
Oil to Hit $200 a Barrel 3/5
Lindsey Williams Exclusive:
Nwo to Target Iran & Saudi Arabia Next
Oil to Hit $200 a Barrel 4/5
Lindsey Williams Exclusive:
Nwo to Target Iran & Saudi Arabia Next
Oil to Hit $200 a Barrel 5/5
Police Would "Absolutely" Use Force On Wisconsin Protesters
Paul Joseph Watson - Infowars.com
Police would don riot gear and "absolutely" use force on protesters in Wisconsin, according to a state law enforcement representative, further stoking fears that the ongoing union demonstrations against a plan by Governor Scott Walker to eliminate collective bargaining rights for most public employees could end in violence.
Despite the fact that the Wisconsin Law Enforcement Association (WLEA) has vocally condemned Walker's move to raise the level of pension and health contributions public workers would be forced to pay, WLEA executive board president Tracy Fuller said that troopers would still obey orders, don riot gear and "absolutely" use force against protesters to crush dissent if they were told to do so.
Gov. Walker Rejects Compromise
as Wisconsin Union Protests Continue
Starving Wisconsin's Unions
By Eugene Robinson - Truthdig.com
Let's be clear: The high-stakes standoff in Wisconsin has nothing to do with balancing the state's budget.
It is about money, though - but only in the sense that money translates into political power. At this point, it's clear for all to see that Gov. Scott Walker's true aim is to bust the public employee unions, thus permanently reshaping the political landscape in the Republican Party's favor.
Democratic state senators who fled the state to forestall Walker's coup have no choice but to remain on the lam. Protesters who support union rights have no choice but to keep their vigil at the Capitol in Madison. This is a big deal.
Who Killed the Unions?
By Derek Thompson - TheAtlantic.com
The fight between Republicans and unions has spread from Wisconsin to Illinois and Ohio, but nationally it has bloomed into broader discussion about the place of unions in the U.S. Conservatives say the presence of unions contributes to state deficits. Liberals counter that the decline of unions contributes to middle class stagnation.
Kevin Drum blames Washington:
If politicians care almost exclusively about the concerns of the rich, it makes sense that over the past decades they've enacted policies that have ended up benefiting the rich. And if you're not rich yourself, this is a problem. First and foremost, it's an economic problem because it's siphoned vast sums of money from the pockets of most Americans into those of the ultrawealthy. At the same time, relentless concentration of wealth and power among the rich is deeply corrosive in a democracy, and this makes it a profoundly political problem as well.
Koch Brothers Behind WI Governor Walker's Union Busting
from a 'progressive' source... Koch Brothers and Wall Street buy governors,
as well as Supreme Court Justices
by Pamela Powers - TucsonProgressive.com
Billionaire Brothers' Money Plays Role in Wisconsin Dispute from the New York Times may belong in the "duh" category, but I think it worthwhile to note the connection between billionaire right-wing philanthropists Charles G. and David Koch, Wall Street, and the current union-busting activities in Wisconsin and other states.
According to the Times, Koch Industries was one of the largest contributors to union-busting Wisconsin Governor Scott Walker. The article excerpted below also says that Koch Brothers' political operatives have been working with state governments in Wisconsin, Ohio, Indiana, and Pennsylvania to bust public employee unions.
Wisconsin governor raises stakes in union fight with threat of job losses Republican Scott Walker warns Wisconsin state workers they could face redundancy if controversial bill does not pass
By Ewen MacAskill Washington - guardian.co.uk
The Republican governor of Wisconsin, Scott Walker, escalated his battle with teachers and other public service workers over union rights today when he threatened to send out redundancy notices next week.
Walker also made a direct appeal on television to the public with what was billed as a fireside chat tonight.
The dispute has provoked some of the biggest protests in the US since the Vietnam war in the 1960s and 1970s.
The governor and the unions are in a standoff over Republican moves to end collective bargaining and other measures aimed at neutering public sector trade unions, and Wisconsin has become the test-bed.
Unions and Medicaid
By Megan McArdl - TheAtlantic.com
Ezra Klein says that unions do fight for the public good against corporations all the time, in contrast to what I said earlier:
This is the exact sort of proposal that unions tend to fight. Why? It's hard to say. Relatively few of their members are on Medicaid. The whole point of being in a union, on some level, is that you don't have to be on Medicaid. But unions have this odd notion of "solidarity." So whenever Medicaid cuts end up on the agenda, you'll find the labor movement is the only well-funded, mass-membership lobby throwing its shoulders into the fight to save Medicaid.....
Clearly, Ezra and I look at the same situation and see two different things. In the most recent quarter for which the Census has data, corporate income taxes provided about $9.2 billion worth of revenue to all 50 states. This is less than 20% of New York State's Medicaid bill. It is also about 3% of the overall tax revenue collected by the states. This goes up to about 4.5% in the second quarter of the year, which includes April 15th, but overall, it is not a very significant source of revenue.
Political Fight Over Unions Escalates
By NEIL KING JR., THOMAS M. BURTON And KRIS MAHER - WSJ.com
The clash between Republicans and unions that caught fire in Wisconsin last week escalated Monday: Labor leaders planned to take their protests to dozens of other capitals and Democrats in a second state considered a walkout to stall bills that would limit union power.
The protests have ignited a wider national debate over the role of labor unions and who should shoulder sacrifices as states scramble to tackle yawning budget deficits. Governors in both political parties are looking for union concessions as they struggle to balance budgets. Some are pushing aggressively to curtail the power of unions to organize or collect dues.
What Gov. Walker Won't Tell You
By Stanley Kutler
There is a kernel of truth in Wisconsin Gov. Scott Walker's claim of a "budget shortfall" of $137 million. But Walker, a Republican, failed to tell the state that less than two weeks into his term as governor, he, with his swollen Republican majorities in the Wisconsin Legislature, pushed through $117 million in tax breaks for business allies of the GOP. There is your crisis.
The state Legislature's Legislative Fiscal Bureau - Wisconsin's equivalent of the Congressional Budget Office and a refuge for professional expertise and nonpartisanship - warned Walker and the Legislature that the measure would create a budget gap. There is your shortfall - and not one resulting from established public employee benefits. Before the tax giveaways, the fiscal agency predicted a surplus for the state.
Is the State Bond Market the Next Bubble to Pop?
BY ROBERT MORLEY - theTrumpet.com
The immutable law of the bond market is about to be broken.
The perfect storm is brewing, says Republican Congressman Patrick McHenry. States are lining up cap in hand before President Barack Obama, expecting a bailout just like everyone else. But "the era of the bailout is over," he says.
What this means is that for the first time in decades, states face a Hobson's choice to balance their budgets. No matter how they do it, it will be extremely painful.
Hurricane-force winds are tearing at state economies. Government revenues are falling. Tax increases are hugely unpopular. Unemployment is high and unemployment insurance payments are draining coffers. House prices continue to fall. Economic growth is near stall speed.
And most dangerous of all, pensions are underfunded by an estimated $3 trillion.
Why Wisconsin's economic protests will only spread
as health care costs bankrupt the states
NWOTruth.com
(NaturalNews) What we're really seeing today with the union worker protests in Madison, Wisconsin is the collision of money desires with fiscal reality. Everywhere across the country, union workers want to take home more money. Across the board, from teachers and firemen to law enforcement officers and government office workers, everybody wants a bigger paycheck. But the states are going broke. And the economic realities we're now facing are making everybody nervous.
The voters, you see, don't really want balanced budgets. Voters, as a rule, are rather short-sighted. They want the higher government wages, benefits and social programs today but they'd rather not think about the financial cost of it all tomorrow.
That works fine for a while until tomorrow actually arrives. And then suddenly your state (or your nation) is facing a debt burden crisis that forces it to make extremely difficult financial decisions.
That's when the protests begin. And before long, the protests lead to riots.
G.O.P. Senators in Wisconsin Say They Will Resume Work
By A. G. SULZBERGER and SABRINA TAVERNISE - NYTimes.com
MADISON, Wis. - With the Capitol braced for another week of protests and deadlock over a budget bill that would severely restrict public employees' unions here, the top Republican in the State Senate announced that the body would resume consideration of other matters.
The move seemed intended to increase the discomfort of the Democratic state senators who have fled the state as a way of preventing a vote on the union legislation. Starting Tuesday, those senators, who are in Illinois, will have to watch from afar as Republicans continue the work of governing without them, taking up matters from the mundane to the controversial.
Wisconsin Governor Warns of Layoff Notices
By Scott Bauer, Associated Press
Madison, Wis. (AP) - Wisconsin Gov. Scott Walker warned Tuesday that state employees could start receiving layoff notices as early as next week if a bill eliminating most collective bargaining rights isn't passed soon.
Walker said in a statement to The Associated Press that the layoffs wouldn't take effect immediately. He didn't say which workers would be targeted but he has repeatedly warned that up to 1,500 workers could lose their jobs by July if his proposal isn't passed.
"Hopefully we don't get to that point," Walker said.
The Real War in Wisconsin
Vy BY ROBERT MORLEY - theTrumpet.com
Are unions destroying the economy? Or is there a more plausible explanation?
Wisconsin is in turmoil. Democrat senators have fled the state. Teachers and public sector unions have illegally gone on strike. Seventy thousand protesters inundated downtown Madison. The dangerous game of chicken is intensifying as a multibillion-dollar deficit grows bigger by the day.
How the Wisconsin union standoff is resolved will have enormous implications for people in all 50 states. It is a giant wake-up call for a broke nation still trying to spend its way to prosperity.
Yet from all the nasty rhetoric and political grandstanding, it is obvious that people still haven't got it. Scott Walker has barely scratched the surface of the state's budget problems, but from the union outcry, you would have thought that Governor Walker was firing thousands of employees and forcing draconian wage cuts.
The Madison-Washington Connection
By Bill Boyarsky - Truthdig.com
The demonstrators in Madison, Wis., are fighting to preserve American hopes for opportunity and security that conservative Republicans are trying to destroy.
Republican efforts in Washington, D.C., and Madison go hand in hand. The union members in Madison are fighting an effort by the Republican governor and Legislature to take away public employee unions' collective bargaining rights. Elimination of such rights in public- and private-sector unions would leave workers without protection, leading to a widening of the gulf between the rich and the poor or those of moderate income. In Washington, right-wing Republicans in power in the House of Representatives are demanding cuts in education and other programs that help working people's chances of bridging that gap.
Clinton: We hold Libyan gov't responsible for violence
By ASSOCIATED PRESS AND JPOST.COM STAFF
Arab League suspends Libya; White House condemns 'appalling' violence in Libya; UNSC demands immediate end to violence.
"This violence is completely unacceptable," US Secretary of State Hillary Rodham Clinton said, speaking about bloody anti-government protests that continued to unfold in Libya on Tuesdsay.
"We believe that the government of Libya bears responsibility for what is occurring and must take actions to end the violence," Clinton told reporters at the State Department.
German Chancellor Angela Merkel said that Libyan leader Muammar Gaddafi's speech on Tuesday as "very, very frightening," adding that he had declared war on the Libyan people, Reuters reported.
Chaos Grows in Libya as Strife in Tripoli Intensifies
By DAVID D. KIRKPATRICK and SHARON OTTERMAN - NYTimes.com
TUNIS - Libya appeared to slip further into chaos on Tuesday, as clashes intensified between rebels and forces loyal to Col. Muammar el-Qaddafi in Tripoli and opposition forces moved to consolidate their hold in eastern Libya.
Witnesses described the streets of Tripoli, the capital, as a war zone. In several neighborhoods, including one called Fashloum, protesters tried to seal off the streets with makeshift barricades of scrap metal and other debris. Forces loyal to Colonel Qaddafi so far failed to surmount the barricades and young protesters appeared to be gathering rocks to defend against another attack.
Libyan warplanes bomb Tripoli
PressTV.ir
In a fresh wave of violent crackdown on protests which have rocked the North African nation for nearly a week, Libyan army warplanes have bombed the capital city of Tripoli.
Reports suggested that army warplanes bombed protesters in Tripoli early on Tuesday.
Residents reported gunfire in the capital city, and one activist said warplanes and helicopters are "indiscriminately bombing ... There are many, many dead."
Meanwhile, cracks have been reported between Libyan President Muammar Gaddafi's supporters as several army personnel and politicians take side with people protesters.
The Libyan embassies in Malaysia and India have condemned military crackdown on people that has led to the massacre of as many as 400 people in the North African state.
Libya's ambassador to India, who stepped down on Tuesday, called on the UN Security Council to take action against the brutal killing of civilians on the streets of the volatile country.
Gaddafi urges violent showdown and tells Libya 'I'll die a martyr'
By Ian Black, Middle East editor - guardian.co.uk
Muammar Gaddafi set the stage for a violent, final showdown to crush Libya's popular uprising by urging loyalists to take to the streets to fight "greasy rats" in the pay of enemies ranging from the US to al-Qaida.
In an angry, ranting and often incoherent speech, the beleaguered Libyan leader ignored evidence of repression and bloodshed, including new reports of death squads, to insist that he would die in his homeland rather than flee abroad.
"I am not going to leave this land," Gaddafi vowed in a live broadcast on state TV. "I will die as a martyr at the end I shall remain, defiant. Muammar is leader of the revolution until the end of time."
Libya: Col Gaddafi threatens to unleash mob rule Col Muammar Gaddafi threatened to unleash mob rule on his country on Tuesday night as he vowed to "cleanse Libya house by house" until he had crushed the insurrection seeking to sweep him from power.
By Adrian Blomfield, Cairo - Telegraph.co.uk
With hundreds dead and violence spreading across the country, including the capital Tripoli, European states scrambled to evacuate thousands of their citizens left stranded by the turmoil.
Britain announced it would provide an airlift for nationals and a Royal Navy frigate was ordered to Libyan waters for added protection.
William Hague, the Foreign Secretary, said a chartered plane would arrive in Tripoli within 48 hours.
"The safety of British nationals in Libya is of paramount concern to us," Mr Hague said. "In light of the fluid and dangerous situation, we are urgently reinforcing our team on the ground with specialist personnel to provide help and assistance to British nationals."
As Violence Engulfs Libya, Qaddafi Promises War
By Max Fisher - TheAtlantic.com
Toward the end of a rambling and apparently off-the-cuff speech late on Sunday, Saif al-Islam al-Qaddafi, whose father has ruled Libya for 42 years, took an abrupt departure from the script of blame-shifting and promise-making that the presidents of Egypt and Tunisia had followed days before their forced resignations. Rather than offering appeasement or excuses, he pledged, in language as apocalyptic as it was frighteningly believable, to go to war against the protesters.
"We will not lose one inch of this land," he warned. "We will flight to the last man and woman and bullet." His father, he said is "leading the battle" and will hold on to power "by any means necessary." He echoed the same vague, hollow promises made by Egypt's Mubarak and Tunisia's Ben Ali, adding, in the dramatic and menacing flair his father has honed for decades, a threat. "We will tomorrow create a new Libya. We can agree on a new national anthem, new flag, new Libya. Or be prepared for civil war."
'Libya air raids death toll hits 1,000'
PressTV.ir
Some 1,000 people have been killed by Libyan security forces in bomb attacks against pro-democracy demonstrators in the North African country, reports say.
A Rome-based group representing Arab expatriates revealed the mascara on Tuesday to become yet another aspect of the Tripoli's brutal crackdown on the country's popular revolution
"Hospitals have no electricity and no medicines," said Foad Aodi, who heads the Rome-based Arab World Communities in Italy (COMAI), dpa reported.
After the air raids,
Gaddafi's death squads keep blood on Tripoli's streets Residents too terrified of mercenaries to collect victims' bodies, but vigilante groups take over 'open cities' elsewhere
By Angelique Chrisafis and Ian Black - guardian.co.uk
On the eerily quiet streets of Tripoli, as the rain of Monday night gave way to sunshine on Tuesday morning, the macabre aftermath of Gaddafi's forces' air and ground attacks lay strewn on squares and curbsides for all to see.
Residents described bullet-ridden corpses slumped in streets of residential areas and the roads around Green Square. This was the remains of the "bloodbath", one said. Relatives of the missing wanted to retrieve the dead for burial but locals said they were afraid to venture out to pick up the bodies.
Libya Declares Force Majeure On Oil Exports Of 1.5 Million Barrels A Day -- Submitted by Tyler Durden - ZeroHedge.com
Reuters reports that Libya has just declared force majeure on its oil exports. As a reminder, Libya exports (under non-force majerue conditions) about 1.5 million barrels per day. That's a lot of barrels, especially for Italy which relies on 425,000 barrels a day from Libya to keep its economy going. From the EIA:
With domestic consumption of 280,000 bbl/d in 2009, Libya had estimated net exports (including all liquids) of 1.5 million bbl/d. According to 2009 official trade data as reported to the Global Trade Atlas, the vast majority of Libyan oil exports are sold to European countries like Italy (425,000 bbl/d), Germany (178,000 bbl/d), France (133,000 bbl/d), and Spain (115,000). With the lifting of sanctions against Libya in 2004, the United States has increased its imports of Libyan oil. According to EIA estimates, the United States imported an average of 80,000 bbl/d from Libya in 2009, up from 56,000 bbl/d in 2005 but, as a result of the U.S. economic downturn and subsequent decline in oil demand, 2009 levels were below 2007 highs of 117,000 bbl/d.
Conservatives versus Freedom
Mises Daily - by Llewellyn H. Rockwell Jr.
When the Egyptian protests first broke out, most Americans celebrated. Though Mubarak's military must still be circumvented or overthrown, the revolt has spread, like a cleansing fire, to Bahrain, Libya, Iraq, Iran, Yemen, Jordan, and beyond.
What is all this all about? Thanks to Western rule since WWI, this is a region of dictators and domination. Regardless of the spark, that is the issue. This might just be an old story and exactly what it appears to be: a struggle between the liberty of the people and the criminal power of the state.
Brotherhood: New Egypt to be bright
PressTV.ir
A Muslim Brotherhood representative says that the new Egypt is to be a bright one with political change after the Egyptian revolution ended Hosni Mubarak's 30-year rule.
"New Egypt will be a bright Egypt, because over the last three decades Egypt was out of history, out of any rule. Now it is time for Egypt to return and play a very important role in the region," Essam al-Arian from the Muslim Brotherhood said in an interview with Press TV.
Although al-Arian believes the Egyptian army is taking steps in the right path, he called on the members of the previous regime to leave their posts.
"We are against such a cabinet because it is a continuance of the last regime. We need total change," he added.
In Bahrain, Shiites Turn Out in Great Numbers to Protest
By MICHAEL SLACKMAN and J. DAVID GOODMAN - NYTimes.com
MANAMA, Bahrain - More than 100,000 protesters poured into the central Pearl Square here on Tuesday in an unbroken stream stretching back for miles along a central highway in the biggest antigovernment demonstration yet in this tiny Persian Gulf kingdom.
The protesters, mostly members of the Shiite majority, marched along the eastbound side of Sheikh Khalifa Bin Salman Highway in a wide, unbroken column of red and white, the country's colors. Men of all ages walked with women and children waving flags and calling for an end to the authoritarian government of King Hamad bin Isa al-Khalifa.
All eyes on Bahrain as Gulf tremors frighten oil markets Oil analysts are paying very close attention to fast-moving events in Bahrain, fearing that clashes between the island's Sunni elite and an aggrieved Shi'ite majority could embroil the two Gulf giants of Iran and Saudi Arabia.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"While events in Libya are undoubtedly of prime importance, they are a red herring for the oil market," said Helima Croft from Barclays Capital. "We believe the unrest in Bahrain may be of far greater importance to the strategic balance in the Middle East and to the oil market."
The risk group Exclusive Analysis said there is a "moderate risk of an extremely violent transition" in Bahrain, the linchpin of stability in the Gulf and host to the US 5th Fleet. "There is a significant probability that the present order is completely overthrown and replaced by a new order aligned with Iran," it said.
Four Americans Held on Hijacked Yacht Are Killed
By J. DAVID GOODMAN - NYTimes.com
Four Americans taken hostage after their yacht was hijacked by Somali pirates were killed early Tuesday after gunfire erupted during "ongoing" attempts by the United States Navy to negotiate with their captors, according to United States military.
Two pirates were also killed in the confrontation and 13 were taken into American military custody.
The Americans, Jean and Scott Adam, from Southern California, and Phyllis Mackay and Robert A. Riggle, from Seattle, were sailing for Djibouti to refuel when they were hijacked several hundred miles off the coast of Oman on Friday afternoon.
The Role of US Debt in the Current Revolution
By Bill Bonner - DailyReckoning.com
02/22/11 Paris, France - Cereal Wars... and Zombie War
Hey, how 'bout that Ben Bernanke... He's a freedom fighter! Look what he's done to North Africa!
Seems like every time we pick up the paper another dictator is toppling over. Where does it lead, we wonder? What would a world be like without dictators? Without them, who will the CIA and the State Department give our money to?
On the run this morning (but not quite given up) is Muammar Gaddafi of Libya.
Wait Is this guy a friend or an enemy? We can't remember. Wasn't he a bad guy a few years ago? But recently we've heard that he is a good guy. He's helped with the War on Terror. And he sells oil.
Friend or foe, we don't know but whatever he is, he's beginning to look past tense. As of this morning, reports say he's lost control of Libya's second largest city. His troops are firing on protesters in the capital, where he and his loyal guards are holed up in a few government buildings.
His son vows to fight back. He says there will be "rivers of blood" before he gives up.
Hold gold, silver if there is war: Marc Faber
BANGKOK (Commodity Online): It is wise to hold gold and silver and invest in precious metals during times of war and when geopolitical tensions and economic crisis hit countries around the world, says noted investment advisor Marc Faber.
Faber, who is famous for his prediction of the US stock market crash in 1987, said that commodities, especially gold and silver will be the wise investment options for people in the wake of rising inflation and troubled economies around the world.
Faber, who is the publisher and editor of Gloom, Boom & Doom Report, said that if there is a war, gold and silver would be desirable investments to hold.
Precious Metals volatile on Africa, Middle East crisis
By Jon Nadler - CommodityOnline.com
Proving once again that explosive geopolitical developments trump any and all bullish wagers made on anticipation of future inflation, or the future fate of the US dollar, gold prices soared on Monday as the "Jasmine Revolution" (or, will it eventually become known as the "Twitter Revolt?") spread and intensified. Any bearish thoughts among traders were placed on temporary 'hold' on Monday, amid such conditions as the missive of the day read: "Fear and Hoarding Worldwide." No need for gold "gurus" to trumpet the obvious and time-tested wisdom of a 'war insurance' position in gold all over the media at this juncture. They did it anyway however, just in case folks wereÉdistracted.
It's as if the G-20 had not even taken place this past weekend. Who was going to care about post- G-20 meeting briefings when Benghazi buckled and Tripoli teetered? In brief, when bullets fly, gold tends to do the same, and, that, it sure did yesterday, despite the closure of the pivotal New York market. The fallout of white-hot embers from the recent events in Tunisia and Egypt has now landed as far away as Morocco, Iran, and -over the weekend- even China, and they are sparking social unrest on a scale not seen for many decades.
Silver undervalued; invest in silver: Jim Rogers
LONDON (Commodity Online): Precious metals are the commodities that investors are piling their money into these days, as gold and silver have been leading the commodities super cycle boom. Noted commodities expert and investing legend Jim Rogers says that investing in silver is the best opportunity these days.
According Rogers, who founded the Rogers International Commodity Index, investing in gold and silver is going to lead to long-term rewards.
Recently, Rogers sat down with Judge Andrew Napolitano on Investment Postcards, discussing how to profit when reckless monetary policies are ruling the world, especially the United States.
Soros Plans New Bretton Woods Conference
EconomicPolicyJournal.com
A monetary conference sponsored by the Institute for New Economic Thinking - a nonprofit founded in 2009 with a $50 million pledge from oligarch George Soros - will be held April 8-11 at the Mount Washington Hotel in Bretton Woods.
Bretton Woods is, of course, the location of a monetary conference that was held following World War II. Lew Rockwell explained what went down at that conference:
At the end of World war II, the monetary condition of all nations was deplorable. The United States faced a massive debt overhang from the war and yet this country was still a creditor nation to the world. The United States also had huge stockpiles of gold. Most everyone else was flat-out bankrupt, as only a gargantuan government program can accomplish. The main currencies had been wrecked and the main economies along with them.
Inflation Seems Like a Safe Prediction, but It's Hardly So Simple
By VISHESH KUMAR - DailyFinance.com
Wall Street's penchant for overreaction aside, it's understandable why many investors might be bracing for scorching inflation ahead. Already posting a stronger rebound than many commentators had expected, the U.S. economy shows signs of picking up yet more steam. Some high-profile economists are expecting growth rates as high as 6% in the year ahead, and bellwether companies like Caterpillar continue to report strong global demand.
That by itself is often enough to result into inflationary pressure. But lately, fears of a conflagration in prices have been exacerbated by the vast easing measures the Fed continues to take in response to the financial crisis.
Keiser Report: Fed's Reign of Terror
A Financial Crisis First: Plaintiffs Challenge Takeover of Thrift
By Joe Adler - NationalMortgagueNews.com
After two and a half years of failures nearly every Friday, and a pile of about 350 collapsed banks, one former management team of a shuttered thrift has decided to fight back.
The former United Western Bank, a $2 billion-asset Denver thrift, along with its holding company and key principals, became the first plaintiffs during the current financial crisis to mount a court challenge to a failure. In a lawsuit filed late last week, they claim that the Office of Thrift Supervision and Federal Deposit Insurance Corp. undermined their recovery plan and locked their doors prematurely.
Though some other failed-bank managers have objected to their institution's collapse, arguing that it was unnecessary, United Western executives are suing in an attempt to force the thrift's reopening - an attempt that has not been made for more than a decade.
Geithner's Gamble
Simon Johnson - ProjectSyndicate.com
LOS ANGELES - In a recent interview, United States Treasury Secretary Tim Geithner laid out his view of the nature of world economic growth and the role of the US financial sector. It is a deeply disturbing vision, one that amounts to a huge, uninformed gamble with the future of the American economy - and that suggests that Geithner remains the senior public official worldwide who is most in thrall to the self-serving ideology of big banks.
Geithner argues that the world will now experience a major "financial deepening," owing to growing demand in emerging markets for financial products and services. He is thinking, of course, of "middle-income" countries like India, China, and Brazil. And he is right to emphasize that all have made terrific progress and now offer great opportunities for the rising middle class, which wants to accumulate savings, borrow more easily (for productive investment, home purchases, education, etc), and, more generally, smooth out consumption.
Replace the Federal Reserve Altogether A Good Idea
By Bob Chapman, TheInternationalForecaster.com
Rather than have designation to what the Fed is doing we believe to a great extent the term quantitative easing will fade from the major media and Fed announcements, probably to be replaced by a term such as accommodation. As time passes more and more professionals and investors will realize that this massive creation of money and credit is destroying the capital structure and the dollar. Other countries are emulating the Fed in various ways and degrees and that is why the USDX, the dollar index versus six major currencies has not plunged as it should have. It is lower, but it is not a true reflection of what is really in progress. Gold has spent the last 2-1/2 years directly competing with the dollar for supremacy as the world's reserve currency and hands down the dollar has lost in an accelerating flight to quality to gold and silver. Over the past ten years versus nine other major currencies the dollar's loss in value over each of those years has averaged 15-1/4% and versus silver 20-3/8%. If you widen the spectrum to 50 currencies, the currencies value versus gold and silver have had an even greater fall. The longer the Fed, and other central banks continue to work this charade, the worse the final outcome is going to be. Every step that has been taken since 2000 to extend the problems rather than solve the problems has been futile and makes the final deflationary depression more gruesome.
The Real Reason Germany Wants to Buy the NYSE
BY ROBERT MORLEY theTrumpet.com
The writing is on Wall Street.
It will be a day that will go down in infamy. The biggest symbol of America's economic might-the preeminent institution of Anglo-Saxon financial domination-is about to be sold.
And to a German rival.
What is happening to America? Has it really lost so much economic strength that a company from a nation once bombed to rubble is now purchasing the institution that helped raise the funds to make America's war effort possible? It should be the New York Stock Exchange doing the taking over, not being taken over.
When the bell chimes for the last time at American-owned 11 Wall Street, it will be an ominous, portent-filled day for the country. But probably not for the reason you think.
Rahm Emanuel elected mayor of Chicago Emanuel, the former aide to Barack Obama, needed to win the race by 50% or more to avoid a run-off election which he has done easily, overwhelming five rivals to take the helm of the third-largest US city
By Paul Harris in New York - guardian.co.uk
Rahm Emanuel, the notoriously combative former top aide to President Barack Obama, has become the new mayor of Chicago.
With 88% of precincts reporting in America's third largest city, Emanuel had a commanding leading of 55%; a long way ahead of his nearest rival, former Chicago schools president Gery Chico, on 24%.
Emanuel needed to win the race by 50% or more to avoid a run-off election and capture City Hall at his first try. He has now done that easily, despite the election for the mayor's office once being seen as the most open and competitive in a generation.
American Manufacturing Slowly Rotting Away: How Industries Die
By: Ian Fletcher - MarketOracle.co.uk
I wrote in a previous article about why America's manufacturing sector, despite record output, is actually in very deep trouble: record output doesn't prove the sector healthy when we are running a huge trade deficit in manufactured goods, i.e. consuming more goods than we produce and plugging the gap with asset sales and debt.
But this analysis of the problem only touches the quantitative surface of our ongoing industrial decline. Real industries are not abstract aggregates; they are complex ecosystems of suppliers and supply chains, skills and customer relationships, long-term investments and returns. Deindustrialization is thus a more complex process than is usually realized. It is not just layoffs and crumbling buildings; industries sicken and die in complicated ways.
Ron Paul's Texas Straight Talk 2/22/10: Government Stimulus, One Year Later
U.S. Home Prices in December
Probably Had Biggest 12-Month Drop in a Year
By Bob Willis - Bloomberg.com
Residential real-estate prices dropped in the 12 months to December by the most in a year, a sign the U.S. housing market is struggling even as the rest of the economy recovers, economists said before a report today.
The S&P/Case-Shiller index of home values in 20 cities fell 2.4 percent, the biggest year-over-year decrease since December 2009, according to the median forecast of 19 economists surveyed by Bloomberg News. Another report may show consumer confidence fell this month from the highest level in almost three years.
The curse of negative home equity Hundreds of thousands of South Floridians are underwater on their mortgages, which could have profound impact on the region's economic recovery, or lack of.
BY TOLUSE OLORUNNIPA - MIAMIHERALD.COM
Wesley Ulloa bought her first condo for $230,000 in 2007, and watched helplessly as it lost two-thirds of its value during South Florida's historic housing market tailspin.
The 24-year-old real estate agent has been selling units in her Coconut Grove building for $80,000, a figure that makes her shudder each month as she makes her mortgage payment.
She's one of hundreds of thousands of South Floridians coping with the reality of being underwater on their mortgages - one of the most widespread side effects of the real estate market collapse.
Home prices hit post-bust lows in most big cities
By DEREK KRAVITZ - AP - MSNBC.com
WASHINGTON - Home prices in a majority of major U.S. cities tracked by a private trade group have fallen to their lowest levels since the housing bubble burst, and analysts expect further declines this year.
The Standard & Poor's/Case-Shiller 20-city home price index fell 1 percent in December from November. Prices fell in all but one of the metropolitan markets tracked.
The only city to see a gain was Washington, where hiring by the federal government has helped boost the region's job market.
Eleven of the markets hit their lowest point since the housing bust, in 2006 and 2007: Atlanta, Charlotte, N.C., Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Ore., Seattle and Tampa, Fla.
More New Yorkers falling behind on home loans Mortgage delinquency rates rose in Brooklyn, the Bronx and Queens last year, possibly setting stage for rise in foreclosures this year; Manhattan bucks the worsening statewide trend.
By Amanda Fung - Crain's New York Business
The mortgage loan delinquency rate in Brooklyn, the Bronx and Queens in the final quarter of 2010 was up from year-earlier levels, according to a recent quarterly analysis. The uptick could well lead to a rise in foreclosure activity in coming months.
Brooklyn recorded the greatest increase in the percentage of borrowers 60 or more days past due with their mortgage payments with a 1.05 percentage point increase last year, according to data compiled by TransUnion, a Chicago-based credit and information management company. Borrowers in the Bronx fared better, with an increase of only 0.62 percentage points, while Queens showed the smallest increase with a 0.55 percentage point increase. Manhattan was the only borough to see a decline in delinquencies - with a slight drop of 0.04 percentage points in the period.
U.P.S. Finds a Substitute for Diesel
Natural Gas, at 260 Degrees Below Zero
By MATTHEW L. WALD - NYTimes.com
The final frontier for alternative motor fuels, powering big tractor-trailers, has been crossed.
The alternative is natural gas, but not in the now-familiar form of compressed gas. Instead, a growing number of the biggest trucks are running on liquefied natural gas. Burdened by diesel prices that topped out at over $5 a gallon in 2008 and mindful of the sustained collapse of natural gas prices, trucking companies are expressing new interest in liquefied natural gas for their thirstiest trucks, the over-the-road 18-wheelers.
"It's the only long term viable option to diesel," said Michael G. Britt Sr., director of maintenance and engineering at United Parcel Service, which is about to add 48 L.N.G. trucks and would like to deploy many more, if the fueling infrastructure is in place and if truck production volume rises enough to bring down costs. Many other companies are running test fleets.
***** Wake Up! *****
Canada, U.S. agree to use each other's troops in civil emergencies Canada and the U.S. have signed an agreement that paves the way for the militaries from either nation to send troops across each other's borders during an emergency, but some are questioning why the Harper government has kept silent on the deal.
BY OTTAWA CITIZEN
Canada and the U.S. have signed an agreement that paves the way for the militaries from either nation to send troops across each other's borders during an emergency, but some are questioning why the Harper government has kept silent on the deal.
Neither the Canadian government nor the Canadian Forces announced the new agreement, which was signed Feb. 14 in Texas.
The U.S. military's Northern Command, however, publicized the agreement with a statement outlining how its top officer, Gen. Gene Renuart, and Canadian Lt.-Gen. Marc Dumais, head of Canada Command, signed the plan, which allows the military from one nation to support the armed forces of the other nation during a civil emergency.
Political Fight Over Unions Escalates
By NEIL KING JR., THOMAS M. BURTON And KRIS MAHER
The clash between Republicans and unions that caught fire in Wisconsin last week escalated Monday: Labor leaders planned to take their protests to dozens of other capitals and Democrats in a second state considered a walkout to stall bills that would limit union power.
The protests have ignited a wider national debate over the role of labor unions and who should shoulder sacrifices as states scramble to tackle yawning budget deficits. Governors in both political parties are looking for union concessions as they struggle to balance budgets. Some are pushing aggressively to curtail the power of unions to organize or collect dues.
Wis. governor rejects compromise; thousands protest
By Michael Winter, USA TODAY
UW Health says it is investigating "a few" of its nearly 1,300 doctors for allegedly writing medical excuses from work for union protesters at the Capitol.
In a statement, the health provider said the University of Wisconsin School of Medicine and Public Health and the University of Wisconsin Medical Foundation, which employ the physicians, are looking into "whether their behavior constituted violations of medical ethics or University of Wisconsin and UW Health policies and work rules."
Max Keiser on Revolts:
Americans Joining Middle East Uprising
Moderate Wisconsin Republicans Offer Compromise
By DOUGLAS BELKIN and KRIS MAHER - WSJ.com
With Wisconsin Gov. Scott Walker maintaining a hard line on his budget bill and Democratic senators refusing to return to Madison to vote, attention is turning to a group of moderate Republican senators to negotiate a compromise to the stalemate that has drawn thousands of protesters to the state capital for a sixth straight day.
The proposal, written by Sen. Dale Schultz and first floated in the Republican caucus early last week, calls for most collective bargaining rights of public-employee unions to be eliminated - per Mr. Walker's bill - but then reinstated in 2013, said Mr. Schultz's chief of staff Todd Allbaugh.
"Dale is committed to find a way to preserve collective bargaining in the future," said Mr. Allbaugh in a telephone interview.
On Sunday, Mr. Walker reiterated his confidence that Republicans would pass their proposal intact.
Don't Let Wisconsin Divide Us ... Conservatives and Liberals AGREE About the Important ThingsAbout the Important Things
GeorgeWashington's Blog
Don't let Wisconsin divide us.
Conservatives and liberals actually agree about the most important things.
In fact, most Americans - conservatives and liberals - are fed up with both of the mainstream republican and democratic parties, because it has become obvious that both parties serve Wall Street and the military-industrial complex at the expense of most Americans.
In reality, all Americans - conservatives and liberals:
Want to break up the unholy alliance between big government and big banks
Want to break up the giant banks (and see this)
Agree that the Wall Street criminals who committed fraud should be thrown in jail
Agree that the Federal Reserve should be audited
Are against corporate socialism
Are against rampant inequality
Want to stand up to the ruling class
And are against unnecessary imperial wars
The powers-that-be try to divide us and demonize the "other side" so that we won't realize how much we all agree on.
Gerald Celente on CFRA radio with Michael Harris
Wisconsin Power Play
By PAUL KRUGMAN - NYTimes.com
Last week, in the face of protest demonstrations against Wisconsin's new union-busting governor, Scott Walker - demonstrations that continued through the weekend, with huge crowds on Saturday - Representative Paul Ryan made an unintentionally apt comparison: "ItÕs like Cairo has moved to Madison."
It wasn't the smartest thing for Mr. Ryan to say, since he probably didn't mean to compare Mr. Walker, a fellow Republican, to Hosni Mubarak. Or maybe he did - after all, quite a few prominent conservatives, including Glenn Beck, Rush Limbaugh and Rick Santorum, denounced the uprising in Egypt and insist that President Obama should have helped the Mubarak regime suppress it.
Libya: Government Bombs Civilians, Top Sunni Cleric Puts Out a Death Warrant on Gadhafi,
Son Warns of Foreign Occupation, Native Tribes Revolt
George Washington's blog
The news out of Libya is dramatic.
Dictator Moammar Gadhafi is bombing his own people with military jets.
Two senior officers in the Libyan air force have defected to Malta:
A top Sunni cleric says the army should kill Gadhafi.
Gadhafi's son is warning: "Stop the protest or face civil war & colonialism". He states that the U.S. and Europe will occupy Libya if the protests are not reined in.
Libya's own diplomat accuses Gadhafi of 'crimes against humanity' and 'crimes of war'. Military officials are reportedly calling for Gadhafi's removal. And diplomats and the justice minister have resigned.
Isn't It About Time That The United States
Got The Heck Out Of The Middle East?
EndOfTheAmericanDream.com
In Afghanistan right now, a one-legged Afghan Red Cross worker named Said Musa is sitting in a prison cell awaiting his execution. Musa, a father of six children, was arrested by the Afghan government as he attempted to seek asylum at the German embassy last year. He was sentenced to death by an Afghan court that was established by the new Afghan government that the United States worked so hard to set up. He has been tortured and sexually abused for months. An Afghan judge has told him that he will be hung within a matter of days. So what was his crime? He was a Muslim that has become a Christian. Under Sharia law, that is punishable by death. Is this is the "freedom" that we have sacrificed so many American lives to bring to Afghanistan? This Christian father of six will be hung by the Afghan "democracy" that the United States has been "nurturing" and that U.S. soldiers have been working so hard to defend.
*****
Fall of US Empire, End to Wars:
Johan Galtung Predictions
Warplanes and Troops Besiege Protesters in Libyan Capital
By DAVID D. KIRKPATRICK and MONA EL-NAGGAR - NYTimes.com
CAIRO - The faltering government of the Libyan strongman, Col. Muammar el-Qaddafi, struck back at mounting protests against his 40-year rule as security forces and militiamen backed by helicopters and warplanes besieged parts of the capital on Monday, according to witnesses and news reports from Tripoli.
By Monday night, witnesses said, the streets of Tripoli were thick with special forces loyal to Colonel Qaddafi as well as mercenaries. Roving the streets in trucks, they shot freely as planes dropped what witnesses described as "small bombs" and helicopters fired on protesters.
Libya defectors: Pilots told to bomb protesters flee to Malta As Muammar Gadaffi's ambassadors and most of Libya's UN mission resign, two air force pilots escape rather than obey orders
By John Hooper in Rome and Ian Black - guardian.co.uk
Two high-ranking Libyan air force pilots have who fled to Malta in their aircraft are reported to have told officials they escaped rather than carry out orders to bomb civilians.
The officers defected as Libyan diplomats in several countries and international organisations resigned in protest at the regime's violent response to the deepening crisis. They included Muammar Gaddafi's ambassadors to China, India, Indonesia and Poland, as well as Libya's representative to the Arab League and most, if not all, of its mission at the United Nations.
Oil shock fears as Libya erupts The spectre of full civil war in oil-rich Libya and reports of the creation of an Islamic emirate in country's "Barqa" region has moved the Mid-East crisis into a more dangerous phase, setting off an explosive rise in US crude prices.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"This is potentially worse for oil than the Iran crisis in 1979," said Paul Horsnell, head of oil research at Barclays Capital. "That was a revolution in one country, here there are so many countries at once. The world has only 4.5m barrels-per-day (bpd) of spare capacity, which is not comfortable."
US oil contracts jumped $6 a barrel on Monday to over $95, chasing Brent crude, which traded as high as $108, as the global oil system is drawn into the vortex. While Egypt is a minor oil player, Libya's Sirte Basin holds Africa's largest reserves and supplies 1.4m bpd in exports, mostly to Italy, Germany and Spain.
Why Do Protests Bring Down Regimes?
By Andrew Sullivan - The Atlantic.com
Joshua Tucker asked the question awhile back.
Graeme Robertson's answer:
The key to answer this question, I think, is to understand the basic nature of authoritarian rule. While the news media focus on "the dictator", almost all authoritarian regimes are really coalitions involving a range of players with different resources, including incumbent politicians but also other elites like businessmen, bureaucrats, leaders of mass organizations like labor unions and political parties, and, of course, specialists in coercion like the military or the security forces. These elites are pivotal in deciding the fate of the regime and as long as they continue to ally themselves with the incumbent leadership, the regime is likely to remain stable. By contrast, when these elites split and some defect and decide to throw in their lot with the opposition, then the incumbents are in danger.
Qaddafi Says He Hasn't Fled Libya as Regime Begins to Unravel
By Massoud A Derhally
Feb. 22 (Bloomberg) -- Libyan leader Muammar Qaddafi said he hadn't fled the country as diplomats resigned and soldiers deserted in protest over a crackdown on anti-government protesters that has left hundreds dead.
"I am here in Tripoli and not in Venezuela," the Libyan leader said in comments broadcast on state TV. "Don't believe the dog news agencies," he said, leaning out of his car to speak into a microphone, while holding a white umbrella over his head.
Qaddafi's remarks came after his son threatened "rivers of blood" amid an eruption of violence that the International Federation for Human Rights says has killed more than 300 people. As oil prices surged to the highest in more than two years, Libya's deputy ambassador to the United Nations accused his government of "genocide."
Gadhafi Battles to Hang On Libya Regime Fires on Protesters in Capital; Nation Split in Two; Diplomats Defect
By MARGARET COKER, CHARLES LEVINSON and TAHANI KARRAR-LEWSLEY - WSJ.com
Libya's Col. Moammar Gadhafi violently crushed protests raging across his country Monday - and his armed forces loosed mercenary soldiers upon the capital to shoot protesters, witnesses said - as military, police and diplomats abandoned government posts and swaths of the country's east fell under control of anti-regime forces.
Protests spilled into the capital, the western city of Tripoli, where Col. Gadhafi had long spread Libya's oil wealth generously and where he enjoyed his greatest support. Demonstrators who started their anti-regime protests last week in the country's east, a cradle of anti-Gadhafi activism, had taken control of the city of Benghazi there, witnesses said.
Kadafi's last refuge, fear, is collapsing Libyan leader Moammar Kadafi's vanity and reliance on repression led him to underestimate Libyans' anger against him.
By Jeffrey Fleishman, Los Angeles Times
Reporting from Cairo - Moammar Kadafi's many vanities led the Libyan leader and his intelligence network into miscalculating the breadth of outrage against him in his own land. Long one of the Arab world's most perplexing personalities, Kadafi has traveled the globe with a tent, warning against foreign intervention while polishing his image at home as the country's "Brotherly Leader."
But the unrest sweeping the tribal nation is a sign that after four decades in power, Kadafi has lost the support of key clans and loyalists, and has steadily relied on repression to stay in power. It is as if he failed to grasp the dynamic of change emanating from Tunisia to his west and Egypt to his east.
Gadhafi's hold on Libya weakens
By Maggie Michael - Associated Press
CAIRO - Deep cracks opened in Moammar Gadhafi's regime Monday, with Libyan government officials at home and abroad resigning, air force pilots defecting and a major government building ablaze after clashes in the capital of Tripoli. Protesters called for another night of defiance against the Arab world's longest-serving leader despite a crackdown.
At sunset, pro-Gadhafi militia drove around Tripoli with loudspeakers and told people not to leave their homes, witnesses said, as security forces sought to keep the unrest that swept eastern parts of the country - leaving the second-largest city of Benghazi in protesters' control - from overwhelming the capital of 2 million people.
Blame Bernanke for the Mideast Revolutions?
By Derek Thompson - The Atlantic.com
The protests across the Middle East and North Africa caused some commentators to claim that President George W. Bush's proactive and preemptive wars for democracy in the Arab Islamic world were finally paying off. Other analysts disagreed vehemently, pointing out that the protests had much more to do with decades of simmering discontent and stalled economic development that had nothing to do with the invasion of Iraq.
It's an ugly American custom to take credit, or assign blame, for every major event in the world. But if there's any American political figure who has played a significant role in the Mideast conflagrations, maybe it's not the ex-president but rather the man he appointed to the Federal Reserve: Ben Bernanke.
Why Arab Spring could be al Qaeda's fall
By Paul Cruickshank, CNN Terrorism Analyst
(CNN) -- When historians in future years grapple with the significance of the overthrow of the Mubarak regime in Egypt 10 days ago, coming as it did in the wake of the "Jasmine" January 14 Revolution in Tunisia, they may judge it not only as a seismic event, shattering and renewing the Arab political order, but also the key watershed moment in confronting the global al Qaeda threat.
The political, economic, and cultural stagnation that al Qaeda fed off for more than two decades has been replaced by the fastest moving change the region has ever witnessed, the most promising of Arab Springs.
Mubarak Toppled by CIA Because He Opposed US Plans for War with Iran;
US Eyes Seizure of Suez Canal
Was this the Threat that Forced Mubarak to Quit?
Webster G. Tarpley, Ph.D. - TARPLEY.net
There never was an "Egyptian revolution," but rather a behind-the-scenes military putsch by a junta of CIA puppet generals who evidently could not succeed in their goal of ousting Hosni Mubarak without the help of a heavy-duty ultimatum from Washington in the night between Thursday, February 10 and Friday, February 11, 2011. There is growing evidence that the threat in question involved the seizure or blocking of the Suez Canal, the Egyptian waterway which carries over 8% of all seaborne world trade, which the imperialists tried to grab back in 1956, and from which they would today like to exclude China, Iran, and Russia. As for Mubarak, there are strong indications that he was toppled by Washington and London because he opposed the current US-UK plan to organize a block of Sunni Arab states such as Egypt, Saudi Arabia, Jordan, and the Gulf states - under a US nuclear umbrella and shoulder to shoulder with Israel - for purposes of confrontation and war with Iran, Syria, Hezbollah, and their Shiite and radical allies.
This means that, with the fall of Mubarak, the Middle East has taken a big step on the road to general war. As for the junta, they have now dissolved parliament, shredded the constitution, and announced six months of martial law.
Alex Jones on RT America:
Protests Were Orchestrated by The NWO
Egypt freezes the Mubaraks' assets
By Maggie Michael and Salah Nasrawi - WashingtonTimes.com
CAIRO (AP) - Egypt's top prosecutor on Monday requested that the foreign assets of ousted President Hosni Mubarak and his family be frozen, state TV announced.
Security officials said the prosecutor general asked the Foreign Ministry to contact countries around the world so they can freeze his assets abroad. The president's domestic assets were frozen soon after he stepped down, they added.
The freeze applies to Mr. Mubarak, his wife, and his two sons and two daughters-in-law, said the officials, who spoke on condition of anonymity because they weren't authorized to talk to the press.
Gold Climbs for Seventh Day, Nearing Record, on Mideast Tension By Kim Kyoungwha
Feb. 22 (Bloomberg) -- Gold advanced for a seventh day, the longest winning streak since June, as violence in Libya intensified, prompting investors to seek precious metals as a haven. Silver advanced to a 31-year peak.
Bullion for immediate-delivery increased 0.3 percent to $1,410.75 an ounce, the highest level since Jan. 4, before trading at $1,410.40 an ounce at 8:50 a.m. in Singapore. Cash silver rose 1.1 percent to $34.2612 an ounce, the highest level since March 1980, and traded at $34.2062.
"Gold remains in high demand," Eugen Weinberg, Frankfurt- based head of commodity research with Commerzbank AG, wrote in a note to clients. "Investors are increasingly seeking a safe haven again amid the growing unrest in the Middle East and their demand for gold is therefore stronger."
Ongoing Overnight Short Squeeze Takes Silver To Fresh 31 Year High
ZeroHedge.com
Silver takes out $33.10, hitting a fresh 31 year high, as the relentless short squeeze leads to more body bags, and the only flight to safety currency is now the non-dilutable one (with gold on the verge of $1,400). Only $20 more to go until the all time Hunt Brother record is smashed - one/two more revolutions should do it; even better: hopefully the CME hikes margins next week: that would bring $40 silver 24 hours later. And on a more somber note, please join us for a moment of silence in remembrance of the great, the legendary, the soon to be departed Blythe Masters whose most recent zero margin, infinite PM short contraption has just sang its swan song.
Silver Bankers May Be Sitting on Big Derivatives Losses
and the Fed May Be Funding Them
JESSE'S CAFÉ AMÉRICAIN
My question is simple. What are bankers like J.P. Morgan and HSBC doing playing in such size in this market? What is the economic and productive benefit? Perhaps there is a good answer. The taxpaying public certainly deserves to know. The CFTC says they have looked into this, but the detailed results of their findings remain less than forthcoming.
IF this is legitimate hedging for producers then all well and good, but then there is no justification for secrecy. If these are trading positions held by the bank, or by the bank as agent for speculators, then there may be a greater reason for secrecy, but the magnitude of the shorts is far out of bounds in size. Ten years of production is not a short position, but the entire market and then some.
Peter Schiff and Tom Woods
February 2011 (1 of 2)
Peter Schiff and Tom Woods
February 2011 (2 of 2)
Oil prices jump as violence spreads in Libya Oil prices go up as unrest grows in Libya, the first major petroleum exporter to be shaken by the drive for democracy in the Arab world. Some fear the rise could indirectly hurt U.S. employment.
By Neela Banerjee and Ronald D. White - LATimes.com
Reporting from Washington and Los Angeles -
World oil prices are rising sharply as violence spreads through Libya, the first major petroleum exporter to be shaken by the drive for democracy in the Arab world.
As fears mounted that soaring energy costs could derail the global economic recovery, the benchmark price of crude in London on Monday surged $5.48, or more than 5%, to $108.20 a barrel, its highest level since September 2008. The rise knocked European stock markets sharply lower.
Oil groups prepare to close down in Libya
By Javier Blas in Dubai - FT.com
Oil production in Libya is set to drop dramatically as major international companies and sub-contractors evacuate their staff from the north African country, potentially sending oil prices much higher.
Crude oil prices shot up on Monday to a fresh 2-1/2-year high above $105 a barrel as traders braced for the impact of political unrest in Libya, the first major oil exporting country to be hit by turmoil in the Middle East. Brent rallied further in after-hours trading, up to $108.70 a barrel.
Wintershall, a subsidiary of Germany's BASF, was the only company to confirm publicly it was shutting down production in the country. But executives at other leading oil companies privately conceded they were implementing emergency plans to repatriate all their staff and shut down output. They added that sub-contractors, key to managing the complex oil fields, were already leaving, forcing them to follow suit.
Stark Says ECB Will Raise Rates If Needed to Contain Inflation
By Simone Meier
Feb. 22 (Bloomberg) -- European Central Bank Executive Board member Juergen Stark said the bank will raise interest rates if necessary to keep inflation in check.
"We're prepared to act decisively and immediately if needed,"Stark said at an event in Frankfurt last night. "The objective is pretty clear. In order not to risk un-anchoring inflation expectations, we have to change the monetary policy stance if need be."
"We Owe How Much?": Waiting for The Big Splatter
BybGonzaloLira
Last week, a bit of news came out that - weirdly - didn't garner the attention or the reaction one would have thought it would:
The U.S. Federal government deficit for fiscal year 2011 was revised to $1.645 trillion. That revision was up from the previous estimate of $1.4 trillion, which itself was a revision just a couple-three weeks ago by the Congressional Budget Office from the White House's earlier projection of $1.267 trillion in December.
The additional $378 billion in deficit spending comes from loss of tax revenue: Both from the fall in tax receipts due to the ongoing depression we're experiencing, as well as from the idiotic budget deal with the Republicans, whereby the Bush-era tax cuts were extended. These deficit numbers are huge. Huge. HUGE.
Debt, Debt, Debt 15 Facts About U.S. Government Finances
That Are Almost Too Crazy To Believe
EndOfTheAmericanDream.com
If your family started spending nearly twice as much as it brought in every single year, how long do you think it would be before your family was completely and totally broke? Well, that is essentially what the federal government is doing. The U.S. government is so deep in debt at this point that it is hard to even try to describe it. Where do you even begin? Trying to put the vastness of U.S. government debt into words is kind of like trying to describe a great work of art by Michelangelo to a blind person. This year the U.S. government is going to go 1.645 trillion more dollars into debt. How can one possibly accurately convey just how large that amount of money really is? If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars. Who can even comprehend such an amount? The U.S. government has mismanaged our finances so badly that it is hard to believe. We have sold our children and our grandchildren into perpetual debt slavery and not that many people really seem very upset about it. It is as if most of the nation is in a massive state of denial.
Sale of federal buildings could be difficult
By Jonathan O'Connell - Washington Post
President Obama could not have been more clear, when outlining his budget proposal in Baltimore last week.
"Now, some of the savings will come through less waste and more efficiency," he said. "To take just one example, by getting rid of 14,000 office buildings, lots and government-owned properties we no longer need, we can save taxpayers billions of dollars."
Implementing that vision, however, has not been easy. More than two years after the government tallied 14,000 vacant buildings under President George W. Bush and eight months after Obama issued a presidential memo asking that $3 billion in savings be found from shedding excess real estate, the public still knows little about the value, location, condition or size of those properties -- much less how they might be purchased or leased. Doubts are being raised by the Government Accountability Office and private sector analysts about whether the president can meet his savings goal by his stated deadline, the end of 2012.
Federal, state and local debt hits post-WWII levels
By Steven Mufson - Washington Post
The daunting tower of national, state and local debt in the United States will reach a level this year unmatched just after World War II and already exceeds the size of the entire economy, according to government estimates.
But any similarity between 1946 and now ends there. The U.S. debt levels tumbled in the years after World War II, but today they are still climbing and even deep cuts in spending won't completely change that for several years.
Readying my foreclosed home for new owners Unlike some of our neighbors, I have no desire to wreck the home we loved, and lost
BY MARILYN STEVENS - Salon.com
Our house is being auctioned on Friday. I want to leave it nice for whoever buys it.
A whole industry has grown up around the need to clean out foreclosed houses. Bitter former owners, resentful of the unfair treatment (real or perceived) they've received at the hands of mortgage brokers, banks, real estate agents, have often left their residences not only in a state of disarray, but have caused serious damage to their once "home sweet homes."
The list is endless: fixtures torn out of ceilings and walls; holes viciously punched in drywall; stoves, washers, dryers absconded with. They've moved out with garbage strewn throughout rooms and spray-painted curses on kitchen cabinets. Others, with nowhere to move to, have left the detritus of their lives behind -- furniture, clothing, dishes, toys. The saddest are the personal items: a once much-hugged teddy bear, family photos of happier times.
As The Obamas And The Ultra-Wealthy Live The High Lif
Most Americans Are Going Through Economic Hell
TheEconomicCollapseBlog.com
Barack Obama recently made the following statement to American families that are struggling to survive in this economy: "If you're a family trying to cut back, you might skip going out to dinner, or you might put off a vacation." A few days after making that statement Obama sent his wife and children off on yet another vacation, this time to a luxury ski hotel in Vail, Colorado. But the Obamas are not the only ones enjoying the high life. Wealthy corporate executives and greedy Wall Street fatcats insist that profit margins are too tight to hire more American workers, and yet sales of luxury cars, private jets and vacation homes are soaring. Meanwhile, most American families are going through economic hell right now. In 2010, more Americans than ever before were living below the poverty line. Over 4 million Americans have been unemployed for more than a year, and over 5 million Americans are at least two months behind on their mortgage payments. As the Obamas and wealthy corporate executives jet off to fancy ski resorts, half of all American workers are earning $505 or less per week and 55 percent of American families are living paycheck to paycheck. Something is very wrong with this picture.
Michigan orders DPS to make huge cuts Bobb told to consolidate services, close half of schools to end deficit -- By Jennifer Chambers / The Detroit News
Lansing - Swift and severe changes are coming to Detroit Public Schools.
State education officials have ordered Robert Bobb to immediately implement a financial restructuring plan that balances the district's books by closing half of its schools, swelling high school class sizes to 60 students and consolidating operations.
This week, Bobb, the district's emergency financial manager, said he is meeting with Detroit city officials and will set up a meeting with Wayne County Regional Educational Service Agency to discuss consolidation opportunities in areas such as finance, public safety, transportation and other areas.
Illinois slashes ALL state funding
for drug and alcohol abuse treatment in massive cuts programme Disability and child care services could be next
By DAILY MAIL REPORTER
Tens of thousands of Illinois residents are expected to be affected when drug and alcohol treatment and prevention centres across the state have their budgets cut from March 15.
The harsh budget cuts, proposed by Illinois governor Pat Quinn, who is a Democrat, will mean that from next month, all state funding will be cut.
After that date, only federal (national) Medicaid dollars will be available to fund the state's drug and alcohol treatment and prevention programmes, which means that some centres are facing closure.
Bill Clinton and George Bush Sr open US centre for political civility in Arizona National Institute for Civil Discourse launched after shooting of Gabrielle Giffords to encourage less vitriolic public discussion
Ewen MacAskill in Washington - guardian.co.uk
Former presidents George Bush Sr and Bill Clinton have joined forces to open a new centre in Arizona committed to encouraging civility in US politics, in the wake of the shooting of a Congresswoman Gabrielle Giffords.
The two are to serve as honorary chairmen of the centre, the National Institute for Civil Discourse, whose board will also include other prominent US political figures from both the Democratic and Republican parties.
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 1/6
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 2/6
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 3/6
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 4/6
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 5/6
The Alex Jones Show (Sunday Edition): Order Out of Chaos for Middle East
by Globalist Design 6/6
Citizens Bank of Effingham Becomes Sixth Banking Failure In Georgia
By Craig Stahl - ProblemBankList.com
Georgia may be one of the Nation's smaller states, but it has the dubious distinction of being number one in banking failures this year. The failure of Citizens Bank of Effingham, Springfield, Georgia, today marks the sixth banking failure in Georgia this year. With four more banking failures today, the total number of failed banks in 2010 has reached 22, with Georgia accounted for 27% of all bank failures.
US must be removed from Islamic world: Khamenei
AFP - TheNewAgeOnline.com
Iran's supreme leader Ayatollah Ali Khamenei on Sunday called on Muslims to "remove" the US from the Islamic world.
"The main problem in the Muslim world is the presence of the United States. It is the biggest problem. We need to address that," he told a gathering of Shiite and Sunni scholars in Tehran for an international conference on Islam.
"It is necessary to remove the US from the Islamic world," the all-powerful cleric and Islamic republic's commander-in-chief said, adding that the country's arch-foe was currently weak.
Khamenei urged Muslims worldwide to preserve the "people's movement in Egypt," saying it was the duty of both the people and dignitaries of Arab nations and the entire Islamic community.
Middle East domino effect reaches China An attempt to foment a Chinese "jasmine" revolution, following in the footsteps of Middle East protests, was quashed by authorities after a call to mount demonstrations against the government was posted on an internet forum.
By Peter Foster, Beijing and
Malcolm Moore in Shanghai - Telegraph.co.uk
Large numbers of plain-clothed and uniformed officers were deployed in Beijing, Shanghai and several other Chinese cities after anonymous dissidents issued a call on Saturday to any disaffected Chinese to gather and chant slogans for freedom and democracy.
In the event, the calls appeared not have penetrated far into the consciousness of ordinary Chinese as the authorities censored Chinese microblogs, made pre-emptive arrests of up to 100 known activists and mounted a deterrent show of police presence on the streets.
In Beijing's Wangfujing shopping district, close to Tiananmen Square which was the epicentre of protests in 1989, a few hundred people gathered in front of the McDonald's restaurant that had been appointed as the place of protest.
China detains activists after online call for protests
ByTania Branigan in Beijing and agencies - guardian.co.uk
Chinese security officials have questioned or detained scores of activists and warned others against staging protests after an online call was made for demonstrations in 13 cities, campaigners said.
The message - posted on an overseas website on Saturday - was titled "The jasmine revolution in China".
The swift crackdown underlined the anxiety of authorities in the wake of the Egypt uprising and protests across the Middle East.
It came as the Chinese president, Hu Jintao, urged top officials to "improve social management capabilities", sustain order and handle online information better "to guide public opinion".
China rounds up 100 activists to rapidly quash pro-democracy
'Jasmine Revolution' organised online
By DAILY MAIL REPORTER
Chinese authorities moved quickly and with force to quash a pro-democracy 'Jasmine Revolution', believed to have been inspired by the recent uprisings in the Middle East and North Africa.
More police than usual were scrambled to line the streets today, and there were a number of activists detained after online sites had organised staged protests in Beijing, Shanghai and 11 other major cities.
Citizens were urged to shout: 'We want food, we want work, we want housing, we want fairness' - a slogan that highlights common complaints among ordinary Chinese.
Rulers scramble to put lid on popular dissent
By Michael Peel in Abu Dhabi, Abigail Fielding-Smith in Beirut
and Tobias Buck in Jerusalem - FT.com
The wave of popular uprisings across the Middle East has triggered a fresh round of government handouts and offers of greater political participation, as rich and poor countries alike try to quell or pre-empt unrest.
The United Arab Emirates, seen as one of the most politically stable countries in the region, has unveiled limited electoral reforms, while administrations from Syria to Morocco have announced extra subsidies.
The action highlights how Middle Eastern regimes see a common need to assert their legitimacy as the spirit of the Tunisian and Egyptian revolutions spreads ever wider.
Anger on the streets:
unrest in Iran, Algeria, Yemen, Morocco and China Peaceful demonstrations staged in Morocco but violence breaks out elsewhere in the Middle East and Chinese police crackdown on planned unrest
By Nora Fakim in Rabat, Giles Tremlett, Saeed Kamali Dehghan,
Tania Branigan in Beijing and agencies - guardian.co.uk Morocco: Peaceful protests against prime minister Iran: Thousands dispersed with teargas and batons Algeria: Police separate crowds with clubs and shields Yemen: Unrest continues for ninth consecutive day China: Crackdown after call for 'jasmine revolution'
.... and then, there's Milwaukee, WI
Thousands protest Wisconsin plan to limit union power
By Hal Weitzman in Chicago and James Politi in Washington - FT.com
Protesters on Sunday converged on Wisconsin's state Capitol, Madison, for a sixth day of demonstrations over Governor Scott Walker's plan to limit the union rights of the state's public employees.
The issue has made Wisconsin a lightning rod for progressives and conservatives, transforming the state's normally sleepy capital into a national ideological battleground.
President Barack Obama last week called the Walker plan "an assault on unions", drawing an angry response from Republicans eager to highlight the fact that Mr Obama will need union support to win swing-state Wisconsin in next year's presidential election.
What's at Stake in Wisconsin's Budget Battle Who's in charge of our political system - voters or unions?
By JOHN FUND
This week President Obama was roundly criticized, even by many of his allies, for submitting a federal budget that actually increases our already crushing deficit. But that didn't stop him Thursday from jumping into Wisconsin's titanic budget battle. He accused the new Republican governor, Scott Walker, of launching an "assault" on unions with his emergency legislation aimed at cutting the state budget.
The real assault this week was led by Organizing for America, the successor to President's Obama's 2008 campaign organization. It helped fill buses of protesters who flooded the state capital of Madison and ran 15 phone banks urging people to call state legislators.
Mr. Walker's proposals are hardly revolutionary. Facing a $137 million budget deficit, he has decided to try to avoid laying off 5,500 state workers by proposing that they contribute 5.8% of their income towards their pensions and 12.6% towards health insurance. That's roughly the national average for public pension payments, and it is less than half the national average of what government workers contribute to health care. Mr. Walker also wants to limit the power of public-employee unions to negotiate contracts and work rules - something that 24 states.
Israel warns Iran is 'taking advantage' of Middle East unrest Benjamin Netanyahu, the Israeli prime minister, accused Iran of trying to exploit the Middle East unrest to increase its influence in the region as two Iranian warships prepared to cross the Suez Canal. -- By Dina Kraft in Tel Aviv - Telegraph.co.uk
The two Iranian ships, which are a frigate and a supply ship, are to deliver supplies to a port in Syria. They mark the first Iranian navy vessels to pass through the Suez Canal since the Iranian Revolution in 1979.
Egyptian officials at the canal denied reports by Iranian state television that the pair of ships had already passed through the strategic waterway connecting the Red Sea with the Mediterranean. But instead said the ships were expected to pass through around dawn today.
Palestinians plan 'day of rage' after US vetoes resolution on Israeli settlements US decision to use UN security council veto sparks furious reaction in West Bank and Gaza
By Harriet Sherwood in Jerusalem - guardian.co.uk
Palestinians are planning a "day of rage" on Friday in response to the US wielding its veto against a UN security council resolution condemning Israeli settlements.
The US decision to use its veto has sparked a furious reaction in the West Bank and Gaza.
Anti-US rallies took place in the West Bank towns of Bethlehem, Tulkarem and Jenin this weekend after the 14-1 vote on the resolution, in which the US stood alone against the rest of the security council, including Britain, Germany and France. It voted in contradiction of its own policy.
In Gaza, Hamas described the US position as outrageous and said Washington was "completely biased" towards Israel.
Ayatollahs of Iran watch Libya's Colonel Muammar Gaddafi practise the art of violent repression Few of the Arab regimes facing rebellion are as brutal as that of Colonel Muammar Gaddafi - and now he's shown just how Libya deals with protesters
By Con Coughlin - Telegraph.co.uk
So much for Tony Blair's efforts to persuade Muammar Gaddafi to mend his ways. As has so often been the case when the Libyan dictator's rule has come under threat he has responded with unbridled violence.
So it should come as no surprise that, for all Gaddafi's attempts to portray himself as a reformed character and friend of the West, he has launched by far the most uncompromising response of all the Arab leaders to the anti-government protests currently sweeping the Middle East.
In neighbouring Egypt and Tunisia the military proved extremely reluctant to open fire on their own citizens, a factor that made a significant contribution to the subsequent removal of the countries' leaders.
Israeli anger as Iranian ships head for Suez Canal In a move set to ratchet up tension in the Middle East, Iran's plan to send two naval ships through the Suez Canal to the Mediterranean -- AFP - Telegraph.co.uk
Senior Suez Canal official said Iranian warships had yet to reach Egypt's waterway on Sunday to cross into the Mediterranean, in the first such passage since Iran's 1979 Islamic revolution.
Iranian media reported earlier that the ships were already in the Mediterranean and on their way to a Syrian port.
"No Iranian ships have passed. Not today, not yesterday, not the day before," the head of the canal's operations room, Ahmed al-Manakhly, told AFP.
Manakhly did not say when the Iranian ships were scheduled to arrive but canal officials have privately said they were expected early on Monday.
Iran says its warships completed Suez Canal crossing Iran's state broadcaster says vessels reach Mediterranean, despite recent reports that the controversial crossing, the first since 1979, would only take place later this week.
By Reuters and Haaretz Service
Two Iranian naval ships passed through the Suez Canal on Sunday, Iranian media reported, following conflicting reports and speculations on whether or not Egypt's ruling military would approve the move.
"Two Iranian warships have passed through the canal and are heading towards a Syrian port," Al Alam said. Israel has called their passage through the canal "provocative".
The report by Iran's state broadcaster Al Alam came after a Suez Canal official claimed that the Iranian vessels were to sail through the the Mediterranean on Monday, in what will be the first passage of Iranian naval ships through the canal since 1979.
Confusion over Suez ship crossing Iran media says two warships used the waterway to reach Mediterranean, a claim dismissed by an Egyptian official.
AlJazeera.net
Iranian media has reported that two Iranian warships were in the Mediterranean, in the first such passage since Iran's 1979 Islamic revolution and on their way to a Syrian port.
However, a senior Suez Canal official denied the report on Sunday, saying that the warships had yet to reach Egypt's waterway to cross into the Mediterranean.
"No Iranian ships have passed. Not today, not yesterday, not the day before," Ahmed al-Manakhly, the head of the canal's operations room, told AFP news agency.
Manakhly did not say when the Iranian ships were scheduled to arrive but canal officials have privately said they were expected early on Monday.
In the wake of president Hosni Mubarak's overthrow on February 11, Egypt gave permission on Friday for the warships to transit the canal into the Mediterranean, in what Israel has described as a "provocation".
Libya: 200 dead as Gaddafi's forces fire on protest mourners
Telegraph.co.uk
Libyan forces fired machine-guns at mourners in the eastern city of Benghazi Sunday, a day after commandos and foreign mercenaries pummeled demonstrators with assault rifles and other heavy weaponry.
Libyan security forces opened fire on mourners at a funeral for anti-government protesters in the eastern city of Benghazi again, a day after commandos and foreign mercenaries loyal to longtime leader Moammar Gaddafi attacked demonstrators with knives, assault rifles and other heavy weaponry.
A doctor at one city hospital said he counted 200 dead in his morgue alone since unrest began six days ago.
The crackdown in Libya is shaping up to be the most brutal repression of the anti-government protests that began with uprisings that toppled the regimes in Tunisia and Egypt. The protests then spread quickly around the region to Bahrain, Yemen, Libya, Algeria, Morocco and outside the Middle East to places including the East African nation of Djibouti and even China.
Kadafi's son says Libyan unrest threatens civil war Eyewitness reports trickling out of the isolated country where the Internet has been largely shut down and journalists cannot work freely suggested that protesters were fighting back more forcefully against the Middle East's longest-serving leader.
AP - LATimes.com
CAIRO - After anti-government unrest spread to the Libyan capital and protesters seized military bases and weapons Sunday, Muammar Kadafi's son went on state television to proclaim that his father remained in charge with the army's backing and would "fight until the last man, the last woman, the last bullet."
Seif al-Islam Kadafi, in the regime's first comments on the six days of demonstrations, warned the protesters that they risked igniting a civil war in which Libya's oil wealth "will be burned."
The speech followed a fierce crackdown by security forces who fired on thousands of demonstrators and funeral marchers in the eastern city of Benghazi in a bloody cycle of violence that killed 60 people on Sunday alone, according to a doctor in one city hospital. Since the six days of unrest began, more than 200 people have been killed, according to medical officials, human rights groups and exiled dissidents.
Egypt protests:
fears that the army will install a 'new Mubarak'
to keep its power and privilege Democracy protesters in Cairo fear the army will thwart their revolution by putting up a candidate as a "new Mubarak" in a presidential election later this year.
By Nick Meo, Cairo - Telegraph.co.uk
The generals who now run Egypt are strongly anti-reformist and determined to hang on to the lucrative privileges they have amassed during decades of authoritarian rule, raising the suspicions of protesters even though the army insists it will hand power to civilians as soon as possible.
Last week there were signs of growing friction between protesters and soldiers, after a brief honeymoon period in the days after Hosni Mubarak was forced out of the presidential palace. At a victory rally on Wednesday leaders of the revolution broke a long-standing taboo by openly criticising men in uniform.
Tunisian fundamentalists burn down brothels Islamic fundamentalists attempted a show of force in Tunis on Friday by burning down a street of brothels.
Telegraph.co.uk
Dozens of Islamists calling for Tunisia's brothels to be closed had rallied outside the interior ministry following Friday prayers before marching to Abdallah Guech Street.
At least three people were injured when security forces fired in the air to disperse the crowd.
The incident was the latest sign of Islamists organising in the North African state, the only Arab country with legal prostitution, after an uprising toppled President Zine al-Abidine Ben Ali last month.
Germany must choose EMU fusion or fission For the sake of peripheral nations, Mrs Merkel has to stop paying lip-service to monetary union.
By Ambrose Evans-Pritchard - Telegraph.co.uk
German Chancellor Angela Merkel is teasing Europe and deluding herself.
For all her fiery language in defence of the euro - as if a currency trading so high against the yuan, dollar, and sterling could be under meaningful external attack - Chancellor Angela Merkel has not yet agreed to pay one cent in help to crippled debtor states. Nor has she faced up to the elemental question hanging over monetary union.
Her own Bundesbank argued years ago that EMU is unworkable without fiscal union, and it has been vindicated by the events of the past two years. Either creditor states agree to an EU treasury, 'Transferunion' and debt pool, or EMU will be subject to unending stress and ultimately fracture or shrink to a viable core, or so goes the argument.
Fears remain for US federal shutdown
By James Politi in Washington - FT.com
Senators from both leading parties expressed hope on Sunday that a budget deal could be reached by early March, but any details were lacking and fears remained that the US could face a 1990s-style shutdown of the federal government.
On Saturday, the Republican-controlled House of Representatives voted to approve $61bn in spending cuts from a bill to fund the government for the rest of the fiscal year, which ends on September 30. But Democrats and Barack Obama's administration are opposing the measures, on the grounds that such fiscal retrenchment could damage the US recovery.
Gold: the ultimate inflation hedge Should investors put their trust in the world's oldest inflation hedge? -- By Emma Simon - Telegraph.co.uk
Is gold the ultimate hedge against inflation? Many investors clearly think so and with inflation now running at twice the Government's target it is not surprising that gold hasn't lost its lustre.
Recent research from the World Gold Council shows how gold has held its value over the long term when compared with other commodities. The relative price of gold and oil has remained almost constant over the past 50 years. So although the price of both (in either pounds or dollars) has risen during this period, if you were buying a barrel of oil with bullion you would hand over roughly the same weight of gold as you would have done in 1950.
G-20 Stung by Faster Inflation Amid Imbalance Dispute
By James G. Neuger and Mark Deen
Feb. 18 (Bloomberg) -- Group of 20 policy makers, at odds over smoothing over global economic imbalances, confront a new threat as higher inflation ripples from emerging markets to advanced economies.
A report of greater-than-expected U.S. inflation yesterday followed a jump in the European cost-of-living index to a two- year high and a pickup in Chinese prices, further fraying a tentative global consensus over how to sustain the recovery.
G-20 Overcomes China Opposition to Agree on Imbalance Yardsticks
By James G. Neuger and Theophilos Argitis
Feb. 21 (Bloomberg) -- Group of 20 finance chiefs overcame Chinese opposition to start crafting an early warning system to detect when economic fault lines are opening that may imperil global growth.
Seeking to smooth lopsided trade and investment flows which helped plunge the world into a credit crisis and recession, the G-20's finance ministers and central bankers concluded talks in Paris on Feb. 20 by listing the yardsticks they will monitor to see whether imbalances are forming. Among them: budget deficit levels, the external imbalance and private savings rates.
As G20 Leaders Set Deal, Geithner Criticizes China
By LIZ ALDERMAN - NYTimes.com
PARIS - Treasury Secretary Timothy F. Geithner took direct aim at China on Saturday at a meeting of the world's most powerful economies, saying that its currency was still "substantially undervalued" and that recent steps taken by Beijing to adjust its value were too small.
Meeting here over the weekend, financial leaders from the Group of 20 agreed on a set of guidelines to identify when economic and financial developments in some countries would create problems for the rest of the world.
The agreement was forged after France and Germany persuaded China to accept a compromise that includes measuring a country's currency exchange rate as a gauge of the potential problems.
Dollar on the Edge of the Abyss
By Toby Connor, GoldScents
The dollar is now poised on the edge of the abyss.
The current intermediate cycle has rolled over and is making lower lows and lower highs. The current daily cycle has formed a swing high and is in jeopardy of rolling over into a left translated cycle. If the dollar breaks below the November intermediate bottom of 75.63 it will be an incredibly bearish sign as not only will the current intermediate cycle have topped in only 4 weeks but the larger yearly cycle will also have topped in only 4 weeks.
If that happens there is little chance the dollar will be able to hold above the March`08 lows as the crash down into the three year cycle low begins in earnest.
Bernanke Defends U.S. Policies
By DAMIAN PALETTA,and BRIAN BLACKSTONE - WSJ.com
PARIS - Federal Reserve Chairman Ben Bernanke fired his most pointed rebuttal yet at foreign critics who say the U.S. central bank's easy money policies are breeding inflation and asset bubbles abroad.
The rest of the world has an interest in the U.S. recovery that his policies are spurring, Mr. Bernanke said Friday at a meeting here of finance leaders from the Group of 20 nations. Moreover, he suggested that surging growth in developing economies, driven in part by their own policies, was causing trouble for the U.S.
"Spillovers can go both ways," he said. "Resurgent demand in the emerging markets has contributed significantly to the sharp recent run-up in global commodity prices."
US economics: One big Ponzi scheme While Bernie Madoff languishes in jail, bankers continue to profit as the poor lose their homes and hope.
By Danny Schechter - AlJazeera
Thank you, Bernie, for breaking your silence - even if you are still clinging to that cover-up mode you adopted since you took the entirety of the blame for your crimes.
What is clear is that ripping off the rich is punished far more severely than ripping off the poor. The lengthy sentence you were given spared countless other greedsters and goniffs from facing the music - what music there is.
In an interview - with a reporter from The New York Times who is writing a book to cash in on a man who has already cashed out - we learn, in the vaguest terms, that Mr M believes the banks he did his crooked business with "should have known" his figures did not figure. Keeping with the deceit that has served him well over the years, he names no names.
A Full Frontal View of the World's Uneven Monetary Policy
By Michael S. Derby - WSJ.com
Just how raggedly uneven the outlook for the world's major central banks is was on full display Friday.
Financial markets saw China's central bank tighten margin requirements for the second time in this still-young year to cool its overheating economy, amid hawkish talk from some central bankers in Europe. Meanwhile, Federal Reserve chief Ben Bernanke went to Paris to tell the world's central banks not to blame the U.S. central bank if their economies are overheating.
Of course, the idea of a multispeed recovery and divergent policy outlook isn't new. But the issue lately has been burning more brightly as commodity prices have surged. They are rising because emerging markets such as China's and Brazil's are growing very robustly, and rising incomes are boosting demand for food and energy items. Officials in those nations argue that the Fed's cheap-money policies are creating too much liquidity and driving unsustainable amounts of capital into their nations. Put another way, U.S. monetary policy is the primary source of their woes.
6 Charts Which Prove That Central Banks All Over The Globe Are Recklessly Printing Money
TheEconomicCollapseBlog.com
If the U.S. dollar is being devalued so rapidly, then why does it sometimes increase in value against other global currencies? Well, it is because everybody is recklessly printing money now. The 6 charts which you are about to see below prove this. The truth is that it is not just the U.S. Federal Reserve which has been printing money like there is no tomorrow. Out of control money printing has also been happening in the UK, in the EU, in Japan, in China and in India. There are times when one particular global currency will fall faster than the others, but the reality is that they are all being rapidly devalued. Unfortunately, this is a recipe for a global economic nightmare.
China and Russia sell US Treasuries
By Michael Mackenzie in New York - FT.com
China has sold billions of dollars in US Treasury bills for the second month in a row, even as strong buying from other foreign investors countered Beijing's move to reduce its holdings.
A Treasury report on Tuesday showed net foreign demand for long-term US securities, including bonds and equities, was $41.8bn in December, versus $64.5bn in November. Monthly net Treasury International Capital flows rose to $48.2bn in December, up from $35.6bn in November and $17.2bn in October. The rise was driven by private investors, while official accounts, or foreign central banks, sold US assets for the second successive month.
Foreign private investor demand for US long-dated government debt remained solid in December and US Treasuries with maturities of more than a year recorded inflows of $55bn. But, short-term bills suffered a $37bn fall, after November's $32bn drop.
Are The Wild Teacher Protests In Wisconsin A Prelude To The Economic Riots That Are Coming To America?
TheEconomicCollapseBlog.com
Have you seen video of the teacher protests that are going on in Wisconsin? We haven't seen anything like this in America in quite some time. If you haven't seen video of the protests yet, some very good raw footage is posted below. On the one hand it is good to see Americans coming together and standing up for what they believe in, but on the other hand what these teachers are freaking out about shows just how much America has changed. These teachers are not protesting for liberty, freedom or to change the government. Rather, they are protesting because they want things to remain the same. They simply don't want anyone to mess with their pay. Well, the truth is that none of us ever wants to experience a pay cut. It is not a lot of fun. But sadly, states like Wisconsin are so broke that they have to find cuts somewhere. Someone is going to have to make a sacrifice. The teachers in Wisconsin just want to make sure that it is not them.
MORTGAGE MELTDOWN
Human nature and D.C.-backed loans
By Debra J. Saunders SanFrancisco Chronicle
In 2009, when CNBC's David Faber asked former Federal Reserve Chairman Alan Greenspan what lessons could be learned to prevent another great financial meltdown in the wake of the mortgage-financing collapse, Greenspan did not have a happy-face answer.
"Somewhere in the future we're going to have this conversation again," Greenspan replied. "It will not be for quite a period of time, but it will occur because the flaws in human nature are such that we cannot change that. It doesn't work."
The curse of negative home equity Hundreds of thousands of South Floridians are underwater on their mortgages, which could have profound impact on the region's economic recovery, or lack of.
BY TOLUSE OLORUNNIPA - MIAMIHERALD.COM
Wesley Ulloa bought her first condo for $230,000 in 2007, and watched helplessly as it lost two-thirds of its value during South Florida's historic housing market tailspin.
The 24-year-old real estate agent has been selling units in her Coconut Grove building for $80,000, a figure that makes her shudder each month as she makes her mortgage payment.
She's one of hundreds of thousands of South Floridians coping with the reality of being underwater on their mortgages - one of the most widespread side effects of the real estate market collapse.
The Collapse of America's Labor Force
By: Richard Benson - GoldSeek.com
America continues to face a true national tragedy as tens of millions of unemployed people have been literally discarded because of big business outsourcing to China, India, and elsewhere. Worse yet, the unemployment statistics are manipulated every month in a cruel hoax to make it look like the unemployment rate is far lower than it really is. A high unemployment rate is embarrassing and would depress workers and business psychology, so workers are surgically removed from the labor force and hidden from view.
While the financial press states that we need to create at least 150,000 jobs a month to keep up with a growing labor force, they have failed to report that the number of workers no longer employed jumped by two million last year to 85 million, from 83 million in 2009. Some of these workers hidden from view are in welfare programs, and millions more simply vanish from the workforce using the government's statistical magic.
Ryan's Charge Up Entitlement Hill The GOP's fiscal leader explains why House Republicans will vote to reform Medicare and why the public is ready to listen.
By PAUL A. GIGOT - WSJ.com
Washington - Paul Ryan doesn't look like the menacing sort. He's amiable in a familiar Midwestern way, his disposition varies between cheerfully earnest and wry, and he uses words like "gosh." Yet to hear Democrats tell it, the 41-year-old Republican congressman is the evil genius, the cruel and mad budget cutter who threatens grandma's health care, grandad's retirement, and the entitlement state as we know it.
Senate Democrats like Chuck Schumer issue almost daily press releases attacking Mr. Ryan, Paul Krugman is obsessed and demeaning, and even President Obama can't stop mentioning him. Only this week, the president justified his own failure to tackle entitlements in his dud of a 2012 budget by saying that "the chairman of the House Republican budgeteers didn't sign on" to the final report of Mr. Obama's deficit commission.
What are they all so afraid of?
Facebook & Google are CIA Fronts In the case of both Google and Facebook, three talented students in their 20's came out of obscurity to establish multi-billion dollar enterprises. Do you suppose they had some help?
BY SANDEEP PARWAGA - HENRYMAKOW.COM
There used to be a saying: ''No one makes a name for himself without giving something up''
As a youngster, I was awed by people who ''made it to the top'' by creating and innovating corporations, technologies, or simply establishing themselves through sports, music, entertainment, etc. thus becoming millionaires.
Now as I have grown older, I realize how illusory this paradigm really is. I came to the conclusion that if you want to reach the ''top',' you have to give up your soul.
Take Mark Zuckerberg for example. He is one of the most ''successful entrepreneurs'' in the last decade. Having made a fortune through his Facebook empire, he reaches more than 500 million people worldwide. It seems like a fairytale. A student creates a new interface to connect the people throughout the world. Well, it sounds great doesn't it? It would, if we were true.
The battle of the US-Mexico frontier The United States has built a huge fence to keep Mexican immigrants out. It has cost billions, split communities - but does it work?
By Chris McGreal - guardian.co.uk
Charlie Bruce was a Texas police chief of the old school. In more than four decades on the force he gave homegrown criminals good reason to steer clear of Del Rio, his small town on the United States's southern border, but held no grudge against the steady flow of Mexicans across the frontier in search of opportunity. He admired them for their hard work and the chances they took to better themselves. Besides, some of them built his house.
What happened on the other side of the border, in Mexico, was another matter. There, Bruce unashamedly admits that for years he used his authority as a Texan police officer to run a lucrative smuggling racket. Mostly he dealt in duty-free whisky and cigarettes shipped in to Mexico, bribing officials with tens of thousands of dollars a time to avoid taxes, and then promptly selling the contraband on to Americans who brought it back across the border.
Iron Dome missile defense system to become operational within weeks All test-runs of system prove successful, IAF believes that 13 Iron Dome systems will be required to protect Israeli civilians from short-range missiles.
By Anshel Pfeffer - Haaretz.com
The Iron Dome missile intercept system will be declared operational within a number of weeks, after the Israel Air Force - who will be responsible for operating the system - conducted successful test-runs for the first time on Tuesday and Wednesday.
The interception of target missiles in the test-runs proved successful, and this marked the final stage of tests of the new Israel Air Force unit.
The operation was conducted at a test site in southern Israel, practicing five different scenarios in which the system launched rockets at various ranges. The missiles launched by the Iron Dome successfully intercepted and destroyed the rockets in every scenario.
The operation was conducted by IAF officers and soldiers in cooperation with the Defense Ministry, who oversaw the development of the Iron Dome with Rafael Advanced Defense Systems.
Saudi prince Talal warns of uprising threat
AFP - The Australian
A SENIOR member of the Saudi royal family has warned that the oil-rich country could be harmed by the uprisings sweeping the Arab world unless it speeded up reforms.
Prince Talal bin Abdul-Aziz Al Saud told BBC Arabic that "anything could happen" if King Abdullah Bin Abdul Aziz did not proceed with a program of political transformation.
"King Abdullah ... is the only person who can carry out these reforms," the prince told the broadcaster.
"On his departure, may that be in many years to come, latent trouble will surface and I have warned of this on many occasions. We need to resolve the problems in his lifetime," the prince added.
Talal added that if Saudi authorities "don't give more concern to the demands of the people, anything could happen in this country".
Bahrain Turmoil Poses Fresh Test for White House
By MICHAEL SLACKMAN and MARK LANDLER - NYTimes.com
MANAMA, Bahrain - A brutal government crackdown on pro-democracy protesters here on Thursday not only killed at least five people but, once again, placed the Obama administration in the uncomfortable position of dealing with a strategic Arab ally locked in a showdown with its people.
As the army patrolled with tanks and heavily armed soldiers, the once-peaceful protesters were transformed into a mob of angry mourners chanting slogans like "death to the king," while the opposition withdrew from the Parliament and demanded that the government step down. At the main hospital following the violence, thousands gathered screaming, crying and collapsing in grief.
Obama calls Abbas in bid to prevent UN vote on settlements U.S. working to prevent vote from taking place at Security Council on Friday, but makes clear it will veto resolution should it come to vote; senior UN diplomat says U.S. not only Security Council member against the vote.
By Natasha Mozgovaya, Shlomo Shamir
and News Agencies - Haaretz.com
U.S. President Barack Obama called Palestinian President Mahmoud Abbas on Thursday in an attempt to prevent the impending vote on a United Nations resolution condemning Israeli settlements.
The Palestinian Authority and other Arab nations have pushed that the UN Security Council will vote on the resolution on Friday, and Washington has implored the PA to withdraw the proposal, but so far to no avail.
The U.S. has made it clear that it will veto the resolution should it come to a vote, and it would mark the first time the United States has used its veto power since Barack Obama assumed the presidency.
Iran Says It's Sending Two Ships to Suez; Egypt Says No Permission Granted
By Benjamin Harvey and Vivian Salama - Bloomberg.com
Iran is arranging with Egyptian officials to have two of its warships use the Suez Canal, Iranian state-run Press TV said. The Suez Canal Authority said after today's report that no Iranian naval vessels had been granted permission to sail through the waterway.
Israeli Foreign Minister Avigdor Lieberman said yesterday that Iran was planning later that day to send two gunboats through the canal to Syria, which would involve heading through the eastern Mediterranean, off Israel's coast. He called the move a "provocation."
Keiser Report: Shoe Throwing Index
Egypt's Missing Stoke Concerns About Military
By LIAM STACK - NYTimes.com
CAIRO - Ramadan Aboul Hassan left his house one night about three weeks ago to join a neighborhood watch group with two friends and did not return. The next time their relatives saw the three men they were emerging Wednesday night from a maximum security prison, 400 miles from home, run by Egypt's military. Some family members said they bore signs of torture, though others denied it.
While many here have cheered the military for taking over after last week's ouster of President Hosni Mubarak and for pledging to oversee a transition to democracy, human rights groups say that in the past three weeks the military has also played a documented role in dozens of disappearances and at least 12 cases of torture - trademark practices of the Mubarak government's notorious security police that most here hoped would end with his exit.
Egypt blocked Iran ships from entering Suez Canal Officials overseeing the strategic waterway that connects the Red Sea to the Mediterranean could not confirm the report, saying only that they have been told that plans by two Iranian naval vessels to cross through the canal had been canceled.
By Avi Issacharoff and Reuters - Haaretz.com
The Suez Canal has been told that plans by two Iranian naval ships to cross the waterway were canceled, an official said on Thursday.
It was not immediately clear which side was behind the cancellation, but the Al-Arabiya daily reported that Egyptian authorities had blocked the ships from crossing.
Any naval vessels passing through the canal, a strategic international shipping route that connects the Red Sea to the Mediterranean, must first have approval from Egypt's foreign and defense ministries, officials said.
Mideast Quartet: Israel-PA peace talks must advance quickly due to Egypt unrest
Middle East negotiators say further delay in resumption of negotiations is detrimental to the prospects for regional peace and security.
By Shlomo Shamir, Barak Ravid and News Agencies - Haaretz.com
The Quarter of Mideast negotiators urged Saturday that Israeli-Palestinian peace negotiations must advance quickly due to the recent turmoil in Egypt.
The announcement, which was made at the end of a Quartet meeting in Munich, came after Prime Minister Benjamin Netanyahu has tried to delay the Quarter meet in recent days, claiming the timing wasn't right in light of the political crisis in Egypt.
In a statement, the group said that in view of developments in the Middle East, the Quartet expresses its belief that further delay in the resumption of negotiations is detrimental to the prospects for regional peace and security.
In case you missed it yesterday - worth watching Egypt Destabilization-Op Hatched by Globalists, Not Communists
Libya's 'Day of Anger' Protests
Reported to Leave at Least 19 People Dead
By Caroline Alexander - Bloomberg.com
Libyan protesters challenged Muammar Qaddafi's four decade regime during "Day of Anger" demonstrations around the country in which at least 19 people were reported killed in clashes with pro-government forces.
An opposition website and an anti-Qaddafi activist said violence broke out during marches today in five Libyan cities -- Beyida, Benghazi, Zentan, Rijban and Darnah, according to the Associated Press. The 19 deaths were in Benghazi and Al-Bida, according to Al Arabiya television, which didn't say where it got the information.
There was little confirmed information due to Libya's tight press restrictions. The government-controlled Libyan media presented reports of people praising Qaddafi, who has ruled since 1969 while tolerating no dissent.
Bahrain Army Moves to End Protests as Unrest Spreads
By Glen Carey - Bloomberg.com
Bahrain's army deployed yesterday in the capital, Manama, firing teargas shells, buckshot and rubber bullets to quell an uprising by pro-democracy protesters as unrest spread across the Middle East.
At least five people have been killed since demonstrations against the Sunni ruling Al-Khalifa family began on Feb. 14. Bahrain's foreign minister said protesters were warned before police attacked a rally in the center of Manama, the capital.
"They started firing from the bridge without any warning, then they started firing from their cars," said Hussein Ali, 42, who was at a rally site at 3 a.m. yesterday when security forces arrived. "There were women and children in tents. I saw cars running over tents. It was terrifying, a nightmare. Small children and women were falling over."
Bahrain Leads Surge in Mideast Debt Risk as Unrest Escalates
By Abigail Moses - Bloomberg.com
Bahrain led an increase in the cost of insuring Middle Eastern sovereign debt on concern escalating unrest will destabilize the Persian Gulf, where most of the region's oil is produced.
Credit-default swaps on Bahrain jumped for a fourth day, rising 18.5 basis points to 286, the highest since July 2009, according to CMA prices at 3 p.m. in London. Swaps on Egypt rose to the highest in more than a week as protests continued after last week's resignation of President Hosni Mubarak.
Pro-democracy protesters in Bahrain, home to the U.S. Navy's Fifth Fleet, stepped up demands for the government to resign after a security crackdown left at least three people dead. Egypt's banks and stock market remain shut with no official date to reopen.
Shy U.S. Intellectual Created Playbook Used in a Revolution
By SHERYL GAY STOLBERG - NYTimes.com
BOSTON - Halfway around the world from Tahrir Square in Cairo, an aging American intellectual shuffles about his cluttered brick row house in a working-class neighborhood here. His name is Gene Sharp. Stoop-shouldered and white-haired at 83, he grows orchids, has yet to master the Internet and hardly seems like a dangerous man.
But for the world's despots, his ideas can be fatal.
Few Americans have heard of Mr. Sharp. But for decades, his practical writings on nonviolent revolution - most notably "From Dictatorship to Democracy," a 93-page guide to toppling autocrats, available for download in 24 languages - have inspired dissidents around the world, including in Burma, Bosnia, Estonia and Zimbabwe, and now Tunisia and Egypt.
'Israel closes missions in Turkey due to Hezbollah threat' Israeli embassy in Ankara and Israeli consulate in Istanbul temporarily shut down following threats by Hezbollah of plans to avenge the death of Imad Mughniyah.
By Barak Ravid - Haaretz.com
Israel has temporarily shut down four of its diplomatic missions abroad due to threats from Hezbollah, according to foreign media reports, and the Turkish newspaper Milliyet reported that Israel closed the Israeli embassy in Ankara and the Israeli consulate in Istanbul.
The Turkish newspaper reported that Israel temporarily closed the consulate in Istanbul and the embassy in Ankara due to security needs following threats by Hezbollah.
Israeli embassies around the world were on heightened alert after Hezbollah has threatened Israel that it will avenge the murder of Imad Mughniyah on the third anniversary of his death.
Arab Uprisings: What the February 20 Protests Tell Us About Morocco
Laila Lalami - TheNation.com
With the ouster of Zine el-Abidine Ben Ali and Hosni Mubarak, the Arab world has erupted in popular protests in favor of democracy and dignity. Morocco, long considered one of the most stable Arab countries, is not immune to this regional trend. Inspired by the cases of Tunisia and Egypt, a group of young activists are using social media to spread the word about a protest in Casablanca on February 20. A video they have made to promote the protests has already gone viral. It features thirteen young Moroccan men and women, speaking in their native Arabic or Berber. "I am Moroccan and I will take part in the protest on February 20," they all say, and then go on to explain their reasons for marching: freedom, equality, better living standards, education, labor rights, minority rights and so on.
Gerald Celente on Obama's Budget
Good Morning, Suckers
By Peter Ferrara - The American Spectator.org
President Obama's budget released on Monday proposes to spend $3.73 trillion for 2012. He can't say Bush made him do that. That proposed spending is an undeniable fact that reveals who he is, which he successfully hid from 53% of voters in 2008.
Campaigning in 2008 he promised voters that his plan involved a "net spending cut." That net spending cut translated into $836 billion in increased spending this year from 2008, according to President Obama's own budget documents. That is a federal spending increase of nearly 30% since 2008. Either President Obama does not know what "net spending cut" means in English, or he bamboozled a lot of people in 2008.
Raise the debt limit -- or cut $738 billion
By Jeanne Sahadi
NEW YORK (CNNMoney) -- Want to avoid raising the county's debt ceiling? It could be harder than anyone thinks.
The country would need to cut spending or raise taxes by as much as $738 billion over just 6 months, according to a report from the Congressional Research Service. That's how much it would otherwise need to borrow to pay all its bills for the rest of the year.
The Treasury now estimates that U.S. borrowing could hit its legal debt limit of $14.294 trillion between early April and the end of May.
What does raising $738 billion in 6 months really mean? The federal government could:
Time for a New Economy
Katrina vanden Heuvel - TheNation.com
Last week, as Republican House Oversight Committee Chairman Darrell Issa held a hearing on "job-killing" government regulations, and President Obama ventured over to the anti-worker US Chamber of Commerce, a very different kind of meeting between Labor Secretary Hilda Solis and the American Sustainable Business Council (ASBC) went unreported.
The ASBC - a network representing 65,000 businesses and more than 150,000 entrepreneurs, owners, executives, investors, business professionals and individuals from diverse regions and sectors-was in town for the 2011 Green Jobs Conference. Solis scheduled a 1-hour meeting with the ASBC to explore ideas benefiting workers, unemployed people, and the business community - t ran nearly two hours.
Solis heard from a good range of ASBC members - all business leaders dedicated to pursuing a "triple bottom line" that reflects social and environmental responsibility, as well as the profitability of their operations.
Gold Climbs, Silver Touches 30-Year High Amid Inflation Concern
By Pham-Duy Nguyen and Claudia Carpenter - Bloomberg.com
old rose to a one-month high as rising consumer prices boosted investor demand for an inflation hedge. Silver touched a 30-year high.
The cost of living in the U.S. climbed in January for a seventh month, the government said today. The U.K. consumer- price index rose to a 26-month high last month, a report this week showed. The precious metal has fallen 2.6 percent this year after rallying 30 percent in 2010 and touching a record in December.
"Gold is ready to resume its uptrend because of the worsening outlook for inflation," said James Turk, founder of GoldMoney.com, which held $1.4 billion of precious metals and currencies for investors at the end of January.
Gold futures for April delivery climbed $10, or 0.7 percent, to $1,375.10 an ounce at 1:42 p.m. on the Comex in New York. Earlier, the price touched $1,385.40, the highest since Jan. 13. The metal reached a record $1,432.50 on Dec. 7.
Comex Gold firm on risk aversion, bullish technicals
By Jim Wyckoff - CommodityOnline.com
(Kitco News) - Comex gold futures prices are trading modestly higher Thursday morning, on some safe-haven investment demand due to Middle East tensions and on an improved near-term bullish technical posture of the market. Comex April gold last traded up $4.20 at $1,379.30 an ounce. Spot gold last traded up $3.40 at $1,379.50.
Gold prices are receiving a bid Thursday morning from some safe-haven demand due to fresh Middle East tensions that include protesting in Bahrain and Libya. Also, Iran has reportedly sent two war ships to the Mediterranean Sea, much to the chagrin of Israel. In the background also are ongoing worries regarding the European Union's sovereign debt situation.
Gerald Celente on The Regular Guys Show
Global gold supply to rise: WGC
By Allen Sykora
(Kitco News) - Global gold supply rose 2% in 2010 to 4,108 metric tons, the World Gold Council reported Thursday. The WGC said total supply is likely to rise further as increased exploration-and-project spending from the last decade "starts to bear fruit." Nevertheless, total supply growth should be "modest at best" due to the lack of official-sector sales and stabilization of gold-recycling flows, the WGC said.
Furthermore, the data confirm constraints on supply since mining companies cannot quickly ramp up output to take advantage of a 26% rise in the average price last year, said Eily Ong, of investment research with the WGC. There is a lack of new large deposits and declining ore grades at some mines.
"They cannot just quickly turn the tap on to meet the increase in demand," she said.
Backwardation: What everyone is missing
By Dr Jeffrey Lewis
Prudent investors make wise markets: this should be the quote above every trading desk. The enemy of the hedged investor is not wild markets, nor bearish markets; it is their own emotions.
With silver prices reeling to highs we haven't seen since the 1980s, every piece of information has earned some urgency. Immediately, the world attempts to decipher new developments and information as if there is some sort of end of the world scenario looming below.
While we subscribe to the view that the silver market is being manipulated, backwardation cannot be immediately interpreted as a symptom of such manipulation. For that to be the case, we would have to reason that the majority of investors know about the excellent investment that is silver, as well as the market dynamics that make it so greatly undervalued. That simply isn't the case.
China Inflation: Getting worse and coming to a Wal-Mart near you
By Dian L. Chu - CommodityOnline.com
On Tuesday Feb. 15, China reported its consumer prices (CPI) rose 4.9% year-over-year (yoy) in January, which came in less than expected. Economists were expecting 5.4% inflation, based on a Bloomberg survey.
However, after digesting the data, Asian markets closed mixed on that news, with China's Shanghai Composite staying flat after a choppy trading session.
Well, the reason why markets reacted that way is because the lower figure is partly the beneficiary of a previously announced change--effective January 2011--in the weight of items included the CPI basket calculation.
China Flexes Muscles With US As Biggest Creditor: WikiLeaks
By: Reuters - CNBC.com
Confidential diplomatic cables from the U.S. embassies in Beijing and Hong Kong lay bare China's growing influence as America's largest creditor.
As the U.S. Federal Reserve grappled with the aftershocks of financial crisis, the Chinese, like many others, suffered huge losses from their investments in American financial firms - from Lehman Brothers to the Primary Reserve Fund, the money market fund that broke the buck.
The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S. Treasury Department.
In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.
Downgrades loom for US states
By Nicole Bullock in New York
Cash-strapped US states and cities face the prospect of downgrades after Fitch Ratings changed the way it analyses their burgeoning pension bills.
In a report published on Thursday, Fitch warns the new approach could lead to "limited negative rating action", particularly for local governments with big wage bills. The changes to the way it assesses pension liabilities come amid growing concern over the scale of municipal debt problems and the effect on state and city finances of generous, unfunded public sector pension schemes that will run for many years. Sharp falls in equities and other risky assets during the financial crisis reduced the funding levels of nearly all these pension plans, increasing the pressure on states and local governments when they have even less cash because of dwindling tax revenues to make up the shortfall. Revenues have tumbled while spending has been rising.
Union Fight Heats Up Absent Teachers March; Wisconsin Democrats Flee to Halt Vote
By KRIS MAHER And DOUGLAS BELKIN - WSJ.com
MADISON, Wis. - Democratic lawmakers fled the state in an effort to torpedo a closely watched vote on what would be the nation's first major overhaul of union laws in years, as government workers flooded the statehouse for a third day seeking to block passage of the bill.
Surrounded by thousands of tightly packed protesters, including teachers who had been encouraged by union leaders to show up in force, state senators gathered around 11 a.m. to vote on Republican Gov. Scott Walker's proposal to limit collective-bargaining rights for most state employees.
Collective bargaining protesters, supporters clash at Statehouse Vociferous throngs attend hearings on Senate Bill 5
BY JIM SIEGEL - The Columbus Dispatch
More than 3,000 enthusiastic supporters and opponents of the Senates proposed collective-bargaining overhaul enveloped the Statehouse this morning with cheers of kill the bill and yes on 5, prior to the latest hearing on Senate Bill 5.
The spacious Statehouse atrium was packed mostly with public union workers outraged at efforts to end collective bargaining for state workers and significantly weaken the ability for local workers to bargain for their pay, benefits and working conditions.
Unions made a strong showing for the bill's first two hearings, and they were joined today by more than 200 red-shirt clad tea party activists pushing for the bill's passage. The mix verbally clashed in the Statehouse rotunda, where each side did its best to drown out the other.
Wis. lawmakers flee state to block anti-union bill
By SCOTT BAUER The Associated Press - AJC.com
MADISON, Wis. - Faced with a near-certain Republican victory that would end a half-century of collective bargaining for public workers, Wisconsin Democrats retaliated with the only weapon they had left: They fled.
Fourteen Democratic lawmakers disappeared from the Capitol on Thursday, just as the Senate was about to begin debating the measure aimed at easing the state's budget crunch.
By refusing to show up for a vote, the group brought the debate to a swift halt and hoped to pressure Republicans to the negotiating table.
"The plan is to try and slow this down because it's an extreme piece of legislation that's tearing this state apart," Sen. Jon Erpenbach said.
Tens of Thousands Protest Move by Wisconsin's Governor
to Destroy Public Sector Unions
John Nichols - TheNation.com
More than 10,000 Wisconsinites marched on the state Capitol Tuesday, as crowds rallied in cities around the state, students walked out of high schools and public employees lined roadways holding aloft banners declaring their determination to battle an attempt by Republican Governor Scott Walker to strip state workers of their collective bargaining rights and pack state government positions with political patronage appointees.
Another huge crowd -- numbering perhaps 8,000 - surrounded the Capitol for a Tuesday night rally. Protests spread to the Milwaukee area, where hundreds of workers massed outside Walker's suburban home.
The crowds in Madison will swell Wednesday. The city's schools are closing, as teachers take sick days to join the protests and buses packed with public employees roll into the city.
Madison Schools, Other Districts Cancel Classes Thursday Teachers Union Asks People To Join Protests
WISC Madison- Channel3000.com
MADISON, Wis. -- Madison public schools are closed again Thursday because too many teachers are taking the day off to protest Gov. Scott Walker's proposal to limit union bargaining.
Several other school districts in the area have also canceled classes Thursday.
It's the second consecutive day the Madison Metropolitan School District has canceled classes "due to substantial concerns about staff absences."
The district said it has received reports Wednesday evening that there will again be significant staff absences in the district on Thursday in protest of the governor's proposed changes in labor law.
The district said the decision was made to cancel classes because administrators were concerned about a safe and secure school environment.
Thousands protest Wisconsin anti-union bill New GOP governor's plan to kill public employees' collective bargaining rights clears key hurdle
By SCOTT BAUER, TODD RICHMOND - AP - MSNBC.com
MADISON, Wis.- A bill eliminating most collective bargaining rights from nearly all Wisconsin public employees passed the Legislature's budget-writing committee late Wednesday night despite two days of mass public protests.
The bill went through with all Republicans backing it and no Democratic support.
The vote clears the way for the Senate to take up the bill Thursday.
Thousands of protesters packed the Capitol Rotunda to watch the hearing on television monitors, booing and screaming when supporters of the measure talked. Protesters packed the Capitol all day Tuesday during a 17-hour hearing, overnight and again all day Wednesday.
Gerald Celente:
"Meet The New Boss, Same as Old Boss"
Alex Jones Tv 1/2
Gerald Celente:
"Meet The New Boss, Same as Old Boss"
Alex Jones Tv 2/2
In Wisconsin, Teachers Take Students from Class to Protest
BY DANIEL HALPER - The Weekly Standard
Teachers and students in Wisconsin are protesting Governor Scott Walker's budget bill. But it's not a mark of democracy: instead, teachers have been taking kids out of school to march on the Capitol in Madison. It's being called a "sickout" -- and it's illegal.
"Teachers are joining protests planned today at the State Capitol," one witness to the protest said. "Yesterday, more than half of the student body of Madison East High School walked out with the support and assistance of their teachers."
Madison schools, others closed amid call for demonstrations
By MATTHEW DeFOUR - Wisconsin State Journal
The state's largest teachers union Wednesday night called on all 98,000 of its members to attend rallies in Madison on Thursday and Friday, which led school districts - including Madison - to cancel classes for Thursday.
"This is not about protecting our pay and our benefits," Wisconsin Education Association Council President Mary Bell said at a press conference on the Capitol Square. "It is about protecting our right to collectively bargain."
In an interview, Bell said her message stopped short of endorsing the kind of coordinated action that closed Madison schools Wednesday. She asked teachers who "could" come to the rally to come.
State Democrats absent for vote as Wisconsin budget protests swell
By Phil Gast, CNN
(CNN) -- Sixteen Wisconsin state senators -- 14 of them Democrats -- did not appear at the capitol Thursday for a scheduled vote on a bill that would strip teachers and other public employees of most of their collective bargaining rights and increase their contributions for benefits, lawmakers told CNN.
The bill cleared the Joint Finance Committee Wednesday night on a 12-4 vote and was intended move onto the state Senate Thursday for a vote, but the absence of so many senators left that vote schedule in question.
Senate Minority Leader Mark Miller said he and fellow Democrats left Madison because they were "trying to allow opportunity for democracy to work."
House Passes Amendment to Block Funds for Net Neutrality Order
By Juliana Gruenwald - NationalJournal.com
The House passed an amendment Thursday that would bar the Federal Communications Commission from using any funding to implement the network-neutrality order it approved in December.
The amendment, approved on a 244-181 vote, was offered by Energy and Commerce Communications and Technology Subcommittee Chairman Greg Walden, R-Ore., to legislation that would fund government agencies for the rest of fiscal year 2011.
Walden and other critics of the FCC's net-neutrality order argue it will stifle innovation and investment in broadband. The order aims to bar broadband providers from discriminating against Internet content, services, or applications.
More Than 100 Charged in Largest Medicare Crackdown
By Justin Blum - Bloomberg.com
Federal agents charged more than 100 suspects in nine cities with Medicare fraud -- the most ever in one day -- in the latest U.S. effort to crack down on schemes to bilk the health-care program for the elderly and disabled, according to the Justice Department.
At least 112 suspects, including doctors, nurses and company owners, were charged today in various cases, and searches and arrests are continuing, said Alisa Finelli, a department spokeswoman. The cases involve more than $225 million in alleged false billings.
"We are pleased to announce the largest federal health- care fraud takedown in our nation's history," Attorney General Eric Holder said at a news conference in Washington today.
Bankrupt grocer to shutter 32 supermarkets Three Pathmarks in or near NYC are among A&P's closures, the supermarket giant tells local workers. Moves are part of Chapter 11 proceedings to help ease a $3.2 billion debt burden.
By Daniel Massey - Crain's NY Business
Troubled supermarket giant A&P, which filed for bankruptcy protection late last year, will close 32 stores, including four in the New York City area, union officials have been told.
A&P officials informed United Food and Commercial Workers Local 1500 representatives Tuesday morning that the New York stores to close include a Pathmark supermarket on Nostrand Avenue in south Brooklyn, which employs 100 people; another in Commack, L.I., and one in Hartsdale, N.Y. One A&P in New Rochelle, N.Y., will also shutter.
A&P operates 395 stores in eight states and the District of Columbia under the names A&P, Waldbaum's, Pathmark, Best Cellars, The Food Emporium, Super Fresh and Food Basics.
CT hedgie hit with $1B in redemption requests Diamondback, one of the hedge funds raided by the FBI in connection with a widespread insider-trading investigation, received withdrawal requests for 17% of its funds under management.
By Christine Williamson, PIonline.com - Crains's NY Business
Diamondback Capital Management received withdrawal requests totaling $1 billion - 17% of the hedge fund manager's $5.8 billion under management - for March 31, the next redemption window, confirmed a source with knowledge of the situation who insisted on anonymity.
Stamford, Conn.-based Diamondback was among the hedge funds raided in November by the FBI in connection with a widespread Department of Justice insider-trading investigation. Neither Diamondback nor its employees have been charged with wrongdoing.
Monica Everett, a Diamondback Capital spokeswoman, declined to comment.
111 charged in Medicare scams worth $225M
By Kevin Johnson, USA TODAY
WASHINGTON - Federal prosecutors Thursday charged 111 people, including doctors, nurses and health care company officials, with bilking the Medicare system out of $225 million in the largest one-day health care fraud sweep in U.S. history.
U.S. Attorney General Eric Holder said the charges filed in nine U.S. cities are part of an ongoing national crackdown related to a range of false billing schemes by health providers from New York to Los Angeles.
Holder alleged the suspects submitted claims to Medicare for treatments or services, including home health care, medical equipment, physical therapy and prescription drugs, that were "medically unnecessary and often never provided."
Darpa's New Recruits: You, Your Grandpa and Your Dog
By Noah Shachtman - Wired.com
Perhaps you think you're too fat, too old or too busy to help fight America's wars. Perhaps you're not even a human being. The Pentagon's way-out research arm begs to differ. The military can use your talents - whether you stand or four legs or on two.
Right now, only 1 percent or so of America's population contributes to the country's defense (and offense). In its new budget, Darpa announces a $25 million effort to build tools that'll rope in the other 99 percent. (Doesn't exactly explain how. But think crowd-sourcing, plus a touch of machine learning to pair peeps up.) The program is called "Unconventional Warfighters," and the idea is to tap three pools of potential contributors.
Does the Air Force Already Have a Secret Stealth Bomber?
By David Axe - Wired.com
Officially, the $3.7 billion set aside for the "Long Range Strike" program in the Pentagon's 2012 budget is meant simply to draw up plans for a new, stealthy heavy bomber for the Air Force - a replacement for the Cold War era fleet of long range, strategic aircraft. "It is important that we begin this project now to ensure that a new bomber can be ready before the current aging fleet goes out of service," Secretary of Defense Robert Gates said.
What he didn't say is that the new bomber might already be flying, in prototype form, somewhere deep inside the Air Force's complex of secret test bases.
According to the Pentagon, the new bomber is still just a concept. "Right now we're in the technology-leveraging phase," said Maj. Gen. Alfred Flowers, a senior Air Force budget official. Over the next five years, the Air Force plans to spend $3.7 billion on the bomber, with the goal of equipping the first squadron in the early 2020s.
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 1
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 2
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 3
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 4
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 5
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 6
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 7
Webster Tarpley World Crisis Radio 02-12-2011 Pt. 8
Israel Official Says Iran Ship Is 'Provocation'
By RICHARD BOUDREAUX - WSJ.com
JERUSALEM - Israel's foreign minister on Wednesday accused Iran of staging a "provocation" by sending a warship on a course to sail through the Suez Canal and past Israel's Mediterranean coast to Syria.
Israel's defense minister and U.S. officials, however, played down the significance of the plans, which Iran announced weeks ago.
The Egyptian authority that runs the canal said no Iranian ship had traversed it or sought permission to do so. Israeli defense officials said the warship, sailing with a supply ship and reportedly taking cadets to a training exercise, posed no military threat.
Israeli officials watched with deep unease last week as a popular uprising overthrew Egyptian President Hosni Mubarak, depriving Israel of its only reliable ally in the Middle East. The prospect of an Iranian naval presence in the Mediterranean for the first time since Iran's Islamic Revolution of 1979 was viewed by some in Israel as a sign its adversaries, including Iran and Syria, had suddenly become emboldened.
Israel claims Iran warships to transit Suez Canal
By MARK LAVIE - The Associated Press - WashingtonPost.com
JERUSALEM -- Israel's foreign minister claimed Wednesday that Iran is about to send two warships through the Suez Canal for the first time in years, calling it a "provocation," but he offered no evidence. The Egyptian authority that runs the canal denied it.
Israeli Foreign Minister Avigdor Lieberman said the ships would cross later Wednesday, en route to Syria. He did not say how he knew it.
"This is a provocation that proves that Iranian audacity and insolence are increasing," he said in a statement.
Ahmed el-Manakhli, head of Egypt's canal operations room, denied the claim, saying warships must get permission 48 hours before crossing, and "so far, we have not been notified."
PM on Egypt: Israel must 'prepare for worst'
Netanyahu says leaders and policy-makers around the world must be alerted of possible dangers that may lie ahead.
By HERB KEINON - JerusalemPost.com
Israel shares the world's hopes that Egypt will succeed in its quest for genuine reform, but unlike other democracies it cannot just hope for the best, but must prepare for the worst, Prime Minister Binyamin Netanyahu said on Wednesday.
Speaking to the annual Jerusalem meeting of the Conference of Presidents of Major American Jewish Organizations, Netanyahu said that part of preparing for the worst was "to alert leaders and policy-makers around the world of possible dangers that may lie ahead, not because I want them to materialize - I don't - but because I have a responsibility to do whatever I can to increase the chances that they don't materialize."
Dear Glenn Beck,
Egypt Destabilization-Op Hatched by Globalists,
Not Communists
Soros-Hand in Middle East Strategy of Tension is Sign of New World Order's Offshore Corporate Cartel, Not Leftist Agitators
Aaron Dykes & Alex Jones - Infowars.com
Alex Jones breaks down the real factors behind Egypt's uprising in a special video report where he rebuffs the theories of Glenn Beck, who tries to link the Muslim Brotherhood to radical socialism in the United States. While George Soros has significant influence over these mid-east events, he alone is not the ringmaster in the global game of chess. He is, rather, among those in control of an offshore globalist corporate cartel that dominates the finance of all nations and seeks influence over their domestic affairs.
For Beck, current events in Egypt are occurring as a result of their connection to his pet-list of far-Left idealogues, like Van Jones, and a host of organizations and unions allegedly linked to Soros. While many of these connections are legitimate, Beck obscures altogether the long history of Pentagon intervention in foreign politics. The CIA and U.S. military have, for decades, sponsored and created radical Islamic factions, including the Muslim Brotherhood, the Taliban and more.
Gorbachev Warns of Egypt-Style Russian Revolt
By GREGORY L. WHITE - WSJ.com
MOSCOW - Former Soviet President Mikhail Gorbachev said he is "ashamed" with the way Russia is run today and warned the Kremlin could face an Egypt-style uprising.
Nearly two decades after his reforms led to the collapse of the Soviet Union, Mr. Gorbachev denounced Russia's "ruling class" as "rich and dissolute," in an interview published Wednesday in Novaya Gazeta, the opposition newspaper of which he is part-owner. "I'm ashamed for us and for the country," he said.
He lambasted the Kremlin for eroding the free media and elections that he introduced in the 1980s, and warned that its grip on power could be threatened.
"If things continue the way they are, I think the probability of the Egyptian scenario will grow," he said in a separate radio interview released Tuesday, referring to the popular rebellion that ousted longtime President Hosni Mubarak last week. "Here it could end even more staggeringly," he said.
Secret Report Ordered by Obama Identified Potential Uprisings
By MARK LANDLER - NYTimes.com
WASHINGTON - President Obama ordered his advisers last August to produce a secret report on unrest in the Arab world, which concluded that without sweeping political changes, countries from Bahrain to Yemen were ripe for popular revolt, administration officials said Wednesday.
Mr. Obama's order, known as a Presidential Study Directive, identified likely flashpoints, most notably Egypt, and solicited proposals for how the administration could push for political change in countries with autocratic rulers who are also valuable allies of the United States, these officials said.
The 18-page classified report, they said, grapples with a problem that has bedeviled the White House's approach toward Egypt and other countries in recent days: how to balance American strategic interests and the desire to avert broader instability against the democratic demands of the protesters.
US intelligence unsure over Muslim Brotherhood agenda CIA director tells senators Egyptian group not "monolithic" but that intelligence services were closely following the organization.
By JPOST.COM STAFF
Top US intelligence officials faced tough questions from lawmakers Wednesday over Egypt's Muslim Brotherhood, acknowledging the spy agencies lack certainty on the opposition group's views.
Top US intelligence on Wednesday struggled to answer questions about the agenda of Egypt's Muslim Brotherhood, amid accusations the spy services were caught off-guard by protests in Cairo that forced Hosni Mubarak to step down as president.
CIA Director Leon Panetta told senators the Muslim Brotherhood was not "monolithic" but that the intelligence services were closely following the organization, which he said included "extremist elements."
US National Intelligence Director James Clapper told senators at a hearing that he was unsure about the Muslim Brotherhood's stance on Iran, the Egypt-Israel peace treaty and weapons smuggling into Gaza.
The Takedown of Hosni Mubarak
365 killed in Egyptian uprising, government says
By Ernesto Londono - Washington Post
CAIRO - At least 365 people were killed and more than 5,500 were injured in the frenetic demonstrations that led to the ouster of President Hosni Mubarak, the Egyptian government said Wednesday.
Health Minister Sameh Farid said the toll could rise as authorities collect more information from hospitals, morgues and families that buried their loved ones soon after their deaths.
The numbers represent the first official toll following one of the deadliest periods in Egypt's recent history. They are roughly in line with estimates provided by Human Rights Watch in recent days.
Police Fire on Protesters in Iraq
By MICHAEL S. SCHMIDT and DURAID ADNAN - NYTimes.com
BAGHDAD - Security forces in the eastern Iraqi city of Kut on Wednesday fired on a group of protesters calling for the provincial governor to step down, killing at least three people, according to a local government official.
After the security forces opened fire, the protesters stormed the governor's headquarters and his home, burning both buildings, according to the official. At least 27 people were injured in the violence, including one security officer, the official said.
"They burned all the rooms in the buildings and all the generators. They also burned the cars of the employees," said the official, who was in Kut at the time the violence erupted. "We were able to take the deputy and the employees out the back door. Some of the employees were women, and they were choked by the fires."
Police Attack Bahrain Protesters, Killing at Least Two
By JOE PARKINSON
MANAMA, Bahrain - Riot police firing tear gas and rubber bullets stormed a landmark public square occupied by antigovernment protests early Thursday in Bahrain, driving out demonstrators and killing at least two people, witnesses and hospital officials said, in a drastic turn in the protests swelling across the Arabian Peninsula and the broader Middle East.
Security forces in Manama, the capital of the tiny island kingdom, sealed off every entrance to Pearl Square, then entered the camp from four directions at about 3 a.m., firing tear gas indiscriminately, trampling tents and ripping banners, witnesses said, adding that after police regained control of the square, they continued to chase protesters through side streets.
In Bahrain, authorities move against protesters seeking a repeat of Egypt and Tunisia
By Janine Zacharia - Washington Post
MANAMA, BAHRAIN - In one sense, the anti-government protests here are not new. Shiite Muslims are a majority of Bahrain's population, and they have rarely been shy about challenging the power and privilege vested in the Sunni minority under the ruling al-Khalifa family.
But this time, Bahrain's Shiite protesters are modeling their message on the back-to-back revolts that have toppled leaders in Egypt and Tunisia. As a substitute for Cairo's Tahrir Square, they have chosen as the epicenter of their movement Pearl Square, a traffic circle in the heart of Bahrain's financial district.
Bahrain protests: Demonstrators occupy Pearl Square
BBC.co.uk
Thousands of people have occupied the centre of the Bahraini capital on a third day of anti-government protests.
The numbers of those who have been camping out in Manama's Pearl Square were swelled by many who joined the protests throughout the day.
The protesters are calling for wide-ranging political reforms.
Early on Thursday, there were reports that the police had used tear gas to try to disperse the crowds in the square.
"Police are coming, they are shooting teargas at us," one protester told the Reuters news agency.
Clashes earlier in the week left two dead and dozens injured in the Gulf kingdom.
Bahrain is a key US ally, hosting the US Navy's Fifth Fleet. The US has expressed concern at the violence and called for restraint.
Unrest Spreads, Some Violently
By NEIL MacFARQUHAR - NYTimes.com
Protests convulsed half a dozen countries across the Middle East on Wednesday, with tens of thousands of people turning out in Bahrain to challenge the monarchy, a sixth day of running street battles in Yemen, continued strikes over long-suppressed grievances in Egypt and a demonstrator's funeral in Iran turning into a brief tug of war between the government and its opponents.
Even in heavily policed Libya, pockets of dissent emerged in the main square of Benghazi, with people calling for an end to the 41-year rule of Col. Muammar el-Qaddafi. Iraq, accustomed to sectarian conflict, got a dose of something new: a fiery protest in the eastern city of Kut over unemployment, sporadic electricity and government corruption.
Unrest Reported in Libyan City of Benghazi
By ALAN COWELL - NYTimes.com
PARIS - The protests sweeping the Middle East reached Libya on Wednesday, with demonstrations against its leader, Col. Muammar el-Qaddafi, reported in several cities.
In Benghazi, Libya's second-largest city, a crowd armed with gasoline bombs and rocks protested outside a government office to demand the release of a human rights advocate, Reuters and other news agencies reported. The demonstrators, estimated at several hundred to several thousand, marched to the city's central square, where they clashed with riot police officers.
Will Egypt End the "Obama Arms Bazaar?"
BY KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning
While many investors are focused on the roles that Google Inc. and Twitter played during Egypt's recent turmoil, I immediately zeroed in on all the American-made military hardware that exists in that region - and began to analyze the risk that investors face if the U.S. defense industry quite literally bet on the wrong horse.
Between 2006 and 2009, we sold more than $50 billion worth of weapons systems and related hardware to Middle East nations, according to the Congressional Research Service. The value of annual military contracts in the region has quadrupled since 2000, according to CNN.com.
And it doesn't look like things are slowing down - at least, not yet.
Deficit hysteria grips Washington Obsolete thinking no longer fits facts
By Darrell Delamaide
WASHINGTON (MarketWatch) - Deficit hysteria is rising to fever pitch in Washington as the political jockeying over the budget begins in earnest.
"Fiscal nightmare," "buried under a mountain of debt," "awash in red ink" - these are some of the colorful phrases being bandied about by politicians, pundits and even journalists ostensibly reporting facts. Most of them are winging it on a single undergraduate course in economics, if that, but they know they're right because everybody agrees.
Yet, if you look out the window, you don't see any red ink or mountains of debt. The only nightmare is unemployment continuing near 10% and ongoing waves of foreclosures - neither of which is attributable to the federal deficit and neither of which will be fixed by budget cuts.
US debt equals economy. Federal deficit on track for a record this fiscal year
Government debt to exceed U.S. economy
By Stephen Dinan - The Washington Times
President Obama's budget, released Monday, was conceived as a blueprint for future spending, but it also paints the bleakest picture yet of the current fiscal year, which is on track for a record federal deficit and will see the government's overall debt surpass the size of the total U.S. economy.
Mr. Obama's budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by Sept. 30, the end of the fiscal year. That would be 102.6 percent of GDP - the first time since World War II that dubious figure has been reached.
And the budget projects the government will run a deficit of $1.645 trillion this year, topping 2009's previous record by more than $230 billion. By contrast, 2007's deficit was just $160 billion altogether.
How To Fake An Economic Recovery
By Brandon Smith (aka Giordano Bruno) - Neithercorp Press
This may be a highly distasteful proposition, but just for a moment, I want you to sit back, and imagine that you are a member of the corporate banking elite. You are a walking talking disease ridden power mad pustule who naively believes himself intellectually superior to the vast majority of humanity and above the inherent laws of conscience, honor, and general good taste. You are a villain in the purest sense, in that you not only do great harm to the world, you actually SEEK to do great harm to the world, if only to benefit yourself and your exclusive circle of "friends"; a clan of degenerate blood thirsty sociopaths with delusions of omnipotence that stalk the night like Armani wearing Chupacabra exsanguinating the joy from poor unsuspecting cultures. You are capable of anything, and sadly, you take "pride" in this fact...
Americans Will Flock Into $5,000 Gold and $500 Silver
PARABOLIC INFLATION AND "DEFICIT HYSTERIA"
Submitted by John Rubino - FinancialSense.com
One of the disturbing things about trying to understand the US economy is the sense that official statistics don't match personal experience. They seem to be lying to us, in other words, and more blatantly all the time; hence the popularity of honest analysts like John Williams at ShadowStats.com.
Here's another interesting alternative source, courtesy of Phil's Stock World: theMIT Billion Price Project, which is an attempt to bring modern data mining to bear on consumer prices. As MIT explains its methodology:
Data collection: our data are collected every day from online retailers using a software that scans the underlying code in public webpages and stores the relevant price information in a database. The resulting dataset contains daily prices on the full array of products sold by these retailers. Our data include information on product descriptions, package sizes, brands, special characteristics (e.g. "organic"), and whether the item is on sale or price control.
Fed raises projection on economic growth to 3.9% in 2011
By Jia Lynn Yang - WashingtonPost.com
Federal Reserve policymakers expect the U.S. economy to grow as much as 3.9 percent this year, slightly higher than earlier projections, according to minutes of the central bank's last policy meeting.
The officials believe the recovery is on "firmer footing," the minutes say, but they remain concerned that the pace of growth isn't enough to put a serious dent in the country's nine percent jobless rate. They expect high unemployment to persist at least through the end of 2013.
The minutes of the Jan. 25 meeting, released Wednesday, also show that Federal Reserve members unanimously support continuing its ambitious program, launched in November, to boost the economy by purchasing $600 billion of Treasury bonds.
Gerald Celente on Freedom Watch Judge Napolitano
Geithner says U.S. must face budget, tax challenges
By Rebecca Christie and Richard Rubin
(c) 2011 Bloomberg News via WashingtonPost.com
Feb. 16 (Bloomberg) -- Treasury Secretary Timothy F. Geithner said the U.S. needs to face its fiscal challenges in a way "that's designed to support future growth" as he testified to the Senate Finance Committee.
Geithner said today that job creation isn't happening fast enough as the economy recovers from the recession. He called for tax incentives to encourage investment along with infrastructure and education improvements.
The Treasury chief repeated the administration's call for an overhaul of the corporate tax structure, possibly accompanied by an agreement to allow companies to repatriate overseas profits. Such an agreement won't be considered on its own, he said.
Goldman should give back $2.9 billion to taxpayers
By Greg Gordon | McClatchy Newspapers
WASHINGTON - Irked that Goldman Sachs appears to have reaped a $2.9 billion taxpayer-aided windfall on an investment of a mere $20 million, some experts and watchdogs say the Wall Street giant should return the money to the U.S. Treasury.
"It's a very simple call to make," said Sylvain Raynes, a frequent Goldman critic who's an expert in the kinds of deals in which the investment bank landed an apparent jackpot. "They should never have been given this money, and they should give it back."
The assessment by the Financial Crisis Inquiry Commission also exposed a potentially huge regulatory omission in the rescue of the insurance giant American International Group, which was the conduit for more than $90 billion in tax dollars to U.S. and European banks.
Borders Group files for bankruptcy reorganization
The bookseller, struggling with poor sales and heavy debt, will close about 200 stores - including 35 in California - and lay off about 6,000 workers.
By Stephen Ceasar, Los Angeles Times
Giant bookseller Borders Group Inc., battered by poor sales, continuing financial losses and heavy debt, filed for bankruptcy protection Wednesday and said it would close about 200 of its 642 stores and lay off about 6,000 of its 19,000 workers.
In California, 35 stores will be shuttered, including 21 in Southern California. Among those being closed are stores in Century City, Glendale, Valencia, Tustin, Orange, Oxnard, Long Beach and Pasadena. All the stores that will be closed are underperforming superstores, Borders said.
A complete list of Borders store closures nationwide can be found Here.
The Bellamy Brothers - Jalapenos
Owning a house no longer part of the American dream?
By Patrice Hill - The Washington Times
As Congress and the White House debate how to patch up the housing market after four years of crisis, one clear lesson has emerged: Political leaders for the first time in decades no longer see the American dream of homeownership as the all-consuming goal it once was.
Against a backdrop of burgeoning foreclosures leading to blighted neighborhoods and rising homelessness, the administration's blueprint for housing finance points out what may seem obvious but is difficult for most politicians to acknowledge: The debts and responsibilities associated with homeownership are not for everyone, and many families are better off renting.
Obama Proposes Fannie & Freddie Reforms
as Housing Market Continues to Languish
BY DON MILLER, Associate Editor, Money Morning
Three years after the housing market collapsed, efforts to clean up the financial mess created by Fannie Mae and Freddie Mac - the government agencies that largely inflated the bubble - remain stuck in limbo as Washington policymakers bicker over the details.
Meanwhile, the market continues to suffer through the aftermath.
The total value of U.S. single-family homes plummeted by roughly $798 billion in the final three months of 2010. For the year, values fell by more than $2 trillion to $22.3 trillion, according to Zillow.com.
More than 27% of all homeowners are now underwater and mortgage rates are swiftly starting to move up - threatening to kill any chance the market has to rebound from the worst disaster in its history.
HUD Secretary: Reforms will not substantially impact affordable housing
by KERRI PANCHUK - HousingWire.com
Raising the Federal Housing Administration's annual mortgage insurance premium 25 basis points will not have a dramatic impact on the affordability of homes in America, U.S. Department of Housing and Urban Development Secretary Shaun Donovan said Wednesday.
The FHA announced the coming insurance-premium hike on Monday.
While speaking to civil rights leaders during an affordable housing forum in Washington. D.C., Donovan said the FHA-insurance premium hike that takes effect on April 18 will raise prices on FHA-insured loans. However, he says it will not impact prices significantly enough to kill affordable homeownership opportunities, particularly when considering the counterbalance of today's low interest rates.
Obama suggests 'quiet' debate Private talks on entitlement reform likely
By Kara Rowland - The Washington Times
President Obama has come a long way from the heady campaign days of 2008, when he promised to televise negotiations over his health care reform live on C-SPAN. Now, the White House is conceding that parts of the accelerating debate with Congress over the future of programs such as Medicaid and Social Security should probably be done in private.
"The administration is committed to openness and transparency. We are also committed to getting things done," White House press secretary Jay Carney told reporters one day after Mr. Obama said revamping entitlement programs requires a "quiet" conversation between Democrats and Republicans.
The Leadership Vacuum
By Ruth Marcus - Truthdig.com
Failure of political leadership knows no party. The past few days have offered an unfortunate demonstration of this sad maxim: House Speaker John Boehner ducking his appropriate role in countering the belief that President Barack Obama is a Muslim, and the president himself, once again ducking a leadership role in dealing with the nation's fiscal crisis.
Boehner first. On NBC's "Meet the Press," David Gregory pressed the Ohio Republican about a recent focus group of Iowa Republicans in which 11 of 26 indicated that they think Obama is Muslim.
"As the speaker of the House, as a leader, do you not think it's your responsibility to stand up to that kind of ignorance?" Gregory asked. Good question.
"David, it's not my job to tell the American people what to think," Boehner replied. "Our job in Washington is to listen to the American people." Bad answer - and Gregory didn't let up. He made seven more attempts - an eternity in television time - to get Boehner to acknowledge some responsibility to lead his misguided troops.
US says Arizona has leeway on Medicaid cut
by Associated Press - KTAR.com
PHOENIX - Arizona has received initial clearance from the federal government to pursue Gov. Jan Brewer's plan to dramatically reduce its Medicaid rolls to help balance the state budget, state officials said Wednesday.
Brewer said she was encouraged by a letter in which Health and Human Services Secretary Kathleen Sebelius said the federal health care overhaul does not require the state to keep its Medicaid population as-is past the Sept. 30 expiration of the current five-year authorization of Arizona's Medicaid program.
No Dice, No Money, No Cheating. Are You Sure This Is Monopoly?
By STEPHANIE CLIFFORD - NYTimes.com
You can still collect $200 when you pass "Go," but not in piles of play money.
In the new version of Monopoly, the game's classic pastel-colored bills and the designated Banker have been banished, along with other old-fashioned elements, in favor of a computer that runs the game.
Hasbro showed a preview of the new version, called Monopoly Live, at this week's Toy Fair in New York. It is the classic Monopoly board on the outside, with the familiar railroads like the B.& O. and the development of property. But in the center, instead of dice and Chance and Community Chest cards, an infrared tower with a speaker issues instructions, keeps track of money and makes sure players adhere to the rules. The all-knowing tower even watches over advancing the proper number of spaces.
Keiser Report: Fiat Food
Outlook for Food Prices: High Corn to Cotton, Farmers Have Bevy of Planting Choices;
Stockpiles Remain Thin
By Liam Pleven - WSJ.com
The seeds of a sustained increase in food prices are about to be sown in Mississippi, Nebraska and other farm-belt states across the U.S.
As American farmers prepare to plant their next crops, they must decide how much, and what, to plant.
With prices for everything from corn to cotton and soybeans soaring, the overall mix of production is likely to be similar to last year, instead of a major turn toward one hot crop, a move that would likely drive down the price of that crop.
In past years there have been some big acreage swings, but analysts expect mostly minor changes when the U.S. Department of Agriculture releases a closely watched survey of farmers' intentions next month. Only a limited amount of idle land can be brought into production, further capping supply.
Rising global food prices an 'extreme poverty' crisis
By Josh Brown - The Washington Times
Skyrocketing global food prices have pulled more than 40 million people into "extreme poverty" and have almost reached the levels of June 2008, when the world was rocked by food riots.
"The Bank's Food Price Index shows food prices are now 29 percent higher than they were a year ago and only three percent below the peak of the last food crisis in June 2008," World Bank Group President Robert Zoellick stated Tuesday. "Clearly, this is serious cause for concern."
According to the newest Food Price Watch, the foods with the sharpest price spikes since June of last year include such staples as wheat, maize (corn), sugar and edible oils, with wheat prices increasing the most in past months.
Is Your Job an Endangered Species? Technology is eating jobs - and not just obvious ones like toll takers and phone operators. Lawyers and doctors are at risk as well.
By ANDY KESSLER - WSJ.com
So where the heck are all the jobs? Eight-hundred billion in stimulus and $2 trillion in dollar-printing and all we got were a lousy 36,000 jobs last month. That's not even enough to absorb population growth.
You can't blame the fact that 26 million Americans are unemployed or underemployed on lost housing jobs or globalization - those excuses are played out. To understand what's going on, you have to look behind the headlines. That 36,000 is a net number. The Bureau of Labor Statistics shows that in December some 4,184,000 workers (seasonally adjusted) were hired, and 4,162,000 were "separated" (i.e., laid off or quit). This turnover tells the story of our economy - especially if you focus on jobs lost as a clue to future job growth.
With a heavy regulatory burden, payroll taxes and health-care costs, employing people is very expensive. In January, the Golden Gate Bridge announced that it will have zero toll takers next year: They've been replaced by wireless FastTrak payments and license-plate snapshots.
Technology is eating jobs - and not just toll takers.
Rise of the super rich How the middle class became the underclass
By Annalyn Censky
NEW YORK (CNNMoney) -- Are you better off than your parents?
Probably not if you're in the middle class.
Incomes for 90% of Americans have been stuck in neutral, and it's not just because of the Great Recession. Middle-class incomes have been stagnant for at least a generation, while the wealthiest tier has surged ahead at lighting speed.
In 1988, the income of an average American taxpayer was $33,400, adjusted for inflation. Fast forward 20 years, and not much had changed: The average income was still just $33,000 in 2008, according to IRS data.
Meanwhile, the richest 1% of Americans -- those making $380,000 or more -- have seen their incomes grow 33% over the last 20 years, leaving average Americans in the dust.
Thousands in Wisconsin protest anti-union bill
By Scott Bauer - Associated Press - WashingtonPost.com
MADISON, Wis. (AP) - Thousands of people descended on the Wisconsin state Capitol again Wednesday to protest a bill that would strip most public employees of their collective bargaining rights, but Gov. Scott Walker insisted he has the votes to pass the measure.
On the second consecutive day of demonstrations, Mr. Walker said he was open to making changes in the legislation, the boldest anti-union proposal in the nation. But he said he would not "fundamentally undermine the principles" of the bill, which he says is needed to help balance a projected $3.6 billion budget shortfall and avoid widespread layoffs.
"We're at a point of crisis," Mr. Walker said.
The full Legislature could begin voting on the proposal as early as Thursday.
Illinois governor proposes borrowing $8.7 billion
By Tami Luhby
NEW YORK (CNNMoney) -- A month after Illinois lawmakers approved a massive tax hike, Gov. Pat Quinn unveiled Wednesday a $35.4 billion budget that depends on state lawmakers approving $8.75 billion in borrowing largely to clear a towering stack of unpaid bills.
The budget, which increases spending by $1.7 billion from the previous year and closes a $13 billion gap, slashes programs for the elderly, the poor and the disabled, but leaves education funding largely untouched. No layoffs of state workers are suggested.
Quinn emphasized in his budget address the importance of paying off the bills through what he called a "debt restructuring." The state is six to eight months late with its reimbursements, and vendors are charging higher prices as a result. This costs the state up to $1 billion more a year.
Scott rejects federal rail funds for Florida
By: CNN's Rebecca Stewart
Washington (CNN) - Republican Florida Gov. Rick Scott rejected $432 million in highly-touted funding from the Obama administration for an Orlando to Tampa high-speed rail Wednesday. Slamming government for becoming "addicted to spending," Scott listed three reasons why accepting the federal funds would amount to a "recipe for disaster."
In a statement, Scott said "I was elected to get Floridians back to work and to change the way government does business in our state."
He becomes the third Republican governor to reject the White House initiative for high speed rail, joining Wisconsin's Gov. Scott Walker and Ohio's Gov. John Kasich.
College Graduates in Shock,
Regarding Sudden Disappearance of Good Jobs
Middle East effect helps push gasoline cost to 28-month high
By Sandy Shore, AP - USAToday.com
Gasoline pump prices reached a 28-month high Wednesday even though oil and gas supplies in the U.S. continue to grow and demand for gas is weak.
The national average for regular gasoline rose to $3.133 a gallon. That's about $1.20 more than the price at the pump two years ago, according to AAA, Wright Express and the Oil Price Information Service.
Just eight states have average prices less than $3 a gallon. The cheapest is $2.94 a gallon is in Missouri. Hawaii has the highest average of $3.746 a gallon.
Tom Kloza, OPIS chief oil analyst, predicted gas prices will range from $3.50 to $3.75 a gallon this spring and then drift lower, to between $3 and $3.40 a gallon.
China Blocks U.S. Push on Web Freedom
By LORETTA CHAO
BEIJING - A day after U.S. Secretary of State Hillary Clinton's pledge to promote Internet freedom world-wide, Chinese censors tried to snuff out efforts by U.S. diplomats to generate debate on the issue on Twitter-like microblogs in the country with the world's most Internet users - and its most sophisticated censorship system.
The virtual tussle on Wednesday highlighted the growing importance of such microblogs in China as a new frontier for lively discussion and information sharing that is so fast-paced that censors often have difficulty keeping up. It also pointed out the growing efforts of the U.S. Embassy in Beijing in trying to interact with Chinese citizens.
The State Department initiated the use of Twitter to spread messages on U.S. policy last year, but the recent Middle East turmoil has catapulted such initiatives to the forefront. Mrs. Clinton specifically ordered up the use of Arab-language and Farsi-language tweets as democratic protests gathered force across the Middle East in recent weeks.
Technology piercing N. Korea's news veil
Technology opens door to information
By Andrew Salmon - The Washington Times
SEOUL | North Korea's vicelike grip on the flow of information into and out of its secretive society is weakening, thanks to technology, the porous border with China and the North's crumbling economy, defectors and activists say.
While North Koreans celebrated the birthday of their "Dear Leader" in Pyongyang on Wednesday, a group of activists and defectors showed reporters how outside influences and inside sources are circumventing the totalitarian state's media. The event was sponsored by Paris-based press freedom foundation Reporters Without Borders.
Raymond Kim, a Seoul representative of Reporters Without Borders, held up a cell phone that played a discussion between a husband and wife in Hyesanjin, a North Korean city on the border with China.
Rebellion Seethes in Gulf
Protester Killed in Bahrain; Skirmishes in Yemen; Call for Rebel Executions in Iran
By JOE PARKINSON, ADAM ENTOUS and JULIAN BARNES - WSJ.com
MANAMA, Bahrain - The Middle East's wave of popular revolts helped spur the largest street rebellion in years in a Persian Gulf monarchy, and the first to pit a Shiite Muslim majority against Sunni rulers - heightening the dilemma for the U.S. as it struggles to pursue its interests in the region.
The funeral of a demonstrator here Tuesday swelled into growing clashes with security forces amid the gleaming new skyscrapers of this financial capital, which hosts the headquarters for the U.S. Navy's Fifth Fleet patrolling the Gulf.
The developments came as security forces in Yemen, an important ally in U.S. antiterrorism efforts, fought back protesters for a fifth day. In Iran, the government threatened leaders of Monday's protests there with execution and made a fresh wave of arrests.
The Suez Canal Workers Stage Sit-in as U.S. Warships Dispatched
Kurt Nimmo - Infowars.com
Board members of Egypt's Suez Canal Trade Union and a group of workers staged a sit-in at the canal's authority headquarter in Ismailia on Tuesday, Xinhua reports.
The state-run MENA agency reported that the protesting workers will continue a sit-in demonstration until the Suez Canal Authority chairman responds to their demands. The workers are demanding an increase in wages.
The protesters promised that their sit-in will not affect the navigation process of the strategic waterway, MENA explained.
In the wake of the fall of the dictator Hosni Mubarak's regime, Egypt as been hit by a number of labor strikes. The military now in control of the government has vowed to not allow labor strikes to paralyze the world's most populous Arab nation.
What is the Real Meaning of Egypt's Revolution?
By Barry Rubin GLORIA Center
"The People Toppled the Government," is al-Ahram's headline, and the general interpretation of the Egyptian revolution around the world. That's true but only partly true. Mubarak's pedestal was shaken by the people but he was pushed off it by the army and the establishment.
Let's remember something that nobody wants to hear right now. The revolution in Egypt succeeded because the army didn't want President Husni Mubarak any more. When people say things like: The army wouldn't shoot down its own people. Why? It has done so before.
In normal times the army would have been content to let Mubarak rule until he died, despite being very unhappy with his behavior. He had been declining as a leader due to his age; had refused to name a vice-president, step down, or prepare seriously for succession; and he was trying to foist his son, Gamal, on them who was not a military man and was inadequate for the job.
Egypt: Muslim Brotherhood plans political party
By ASSOCIATED PRESS - JerusalemPost.com
Long-banned Islamic group intends to run in upcoming elections; Armed Forces Supreme Council hopes to have elections within six months.
CAIRO - Egypt's long banned Muslim Brotherhood said Tuesday it intends to form a political party once democracy is established, as the country's new military rulers launched a panel of experts to amend the country's constitution enough to allow democratic elections later this year.
The military is trying to push ahead quickly with a transition after Mubarak resigned Friday in the face of 18 days of unprecedented popular protests that massed hundreds of thousands. The panel is to draw up changes at a breakneck pace - within 10 days - to end the monopoly that ousted President Hosni Mubarak's ruling party once held, which it ensured through widespread election rigging.
Lessons From Egypt For The American People
By Charles Kadlec- dailyreckoning.com
02/15/11 "Cairo, US Blindsided by Revolt" was The Wall Street Journal's headline on its analysis of what led up to the Egyptian crisis.
"We were caught by surprise." Israeli Finance Minister Yval Steinitz told the same newspaper in a separate interview.
As I reflected on the demonstrations in Egypt and followed the news of the events that followed, it occurred to me there were two vital lessons for the American people that have been overlooked.
The first is that the entire notion the United States can pursue an independent monetary policy is a dangerous and erroneous conceit.
The surge in food prices that has contributed directly to the uprisings in Tunisia, Egypt and other countries throughout the Middle East can be traced directly to the Fed's parochial effort to stimulate the domestic economy with an inflationary monetary policy.
U.S. Had Year of Warnings Over Egypt
As Critics Pointed to Signs of Unrest, White House Gave a Muted Rebu
By JAY SOLOMON - WSJ.com
WASHINGTON - Early last year, a group of U.S.-based human-rights activists, neoconservative policy makers and Mideast experts told Secretary of State Hillary Clinton that what passed for calm in Egypt was an illusion.
"If the opportunity to reform is missed, prospects for stability and prosperity in Egypt will be in doubt," read their April 2010 letter.
The correspondence was part of a string of warnings passed to the Obama administration arguing that Egypt, heading toward crisis, required a vigorous U.S. response. Hosni Mubarak, Egypt's 82-year-old dictator, was moving to rig a string of elections, they said. Egypt's young population was growing more agitated.
From Concord to Cairo: Freedom
By Richard Reeves - Truthdig.com
BOSTON - As I remember my American history, our revolution began on April 19, 1775, when 700 British regulars, the Redcoats, left here to march west to the small villages of Lexington and Concord to destroy weapons caches they knew were hidden there by American rebels. The British column encountered 80 or so members of the local militia on Lexington Green and routed them, killing eight locals.
The Redcoats reached Concord and found some buried cannon and balls, but most of the rebel weaponry had been hidden again farther away. They marched through the village to the Old North Bridge where they saw perhaps 400 militiamen on a small ridge overlooking the Concord River. The Americans up there began marching down to face the greatest army in the world. I have stood there more than once trying to imagine what those American farmers and merchants, some without guns, were thinking.
Egypt Leaders Found 'Off' Switch for Internet
By JAMES GLANZ and JOHN MARKOFF - NYTimes.com
Epitaphs for the Mubarak government all note that the mobilizing power of the Internet was one of the Egyptian opposition's most potent weapons. But quickly lost in the swirl of revolution was the government's ferocious counterattack, a dark achievement that many had thought impossible in the age of global connectedness. In a span of minutes just after midnight on Jan. 28, a technologically advanced, densely wired country with more than 20 million people online was essentially severed from the global Internet.
Iran's Leadership Cracks Down In Aftermath of Protests, State Makes More Arrests, as White House Sharpens Support of the Opposition
By FARNAZ FASSIHI - WSJ.com
The Iranian government threatened opposition leaders with execution and made a fresh wave of arrests, a day after the largest protests in a year prompted clashes in which at least two people were killed and dozens injured.
Tehran and other Iranian cities quieted down on Tuesday as the opposition regrouped and assessed the impact of the rallies that brought tens of thousands of people into the streets across the country.
The protesters, buoyed by activism across the Middle East, were confronted forcefully by police and antiriot forces, which used guns, tear gas and electric prods to disperse them. The demonstrators had called for Supreme Leader Ayatollah Ali Khamenei to step down.
Iranian lawmakers condemn protests; call for execution of leaders
By the CNN Wire Staff
Tehran, Iran (CNN) -- Iranian lawmakers denounced Monday's protests in Tehran and called for the execution of two opposition leaders for inciting the demonstrations, Iran's state-run Press TV reported Tuesday.
Members of the Iranian parliament issued fiery chants against opposition leaders and former presidential candidates Mehdi Karrubi and Mir Hossein Moussavi.
Press TV aired video Tuesday of lawmakers chanting "Moussavi, Karrubi ... execute them."
Lawmakers also named former President Mohammad Khatami in some of the death chants.
Iran Protests: Hundreds Of Thousands March, Tear Gas Fired
AP/The Huffington Post
TEHRAN, Iran - Clashes between Iranian police and hundreds of thousands of protesters wracked central Tehran on Monday as security forces beat and fired tear gas at opposition supporters hoping to evoke Egypt's recent popular uprising.
The opposition called for a demonstration Monday in solidarity with Egypt's popular revolt that a few days earlier forced the president there to resign after nearly 30 years in office. The rally is the first major show of strength for Iran's cowed opposition in more than a year.
Tehran Beats Back New Protests In Year's Biggest Rally, Iranians Seek Spiritual Head's Ouster
By FARNAZ FASSIHI - WSJ.com
Iranian police used tear gas and electric prods to crack down on the country's biggest antigovernment protests in at least a year, as demonstrators buoyed by activism across the Middle East returned to the country's streets by the tens of thousands Monday.
The day of planned antigovernment rallies began largely peacefully, according to witnesses, with protesters marching silently or sitting and chanting. But as demonstrators' ranks swelled, police and antiriot forces lined the streets, ordered shops to shut down and responded at times with force, according to witnesses and opposition websites, in a repeat of the official crackdown that helped snuff out months of spirited opposition rallies a year ago.
From Tunis to Cairo to Riyadh? The Saudi royal family is corrupt, infirm, increasingly criticized in social media-and about to face a delicate, perhaps divisive succession process.
By KAREN ELLIOTT HOUSE - WSJ.com ($$)
Riyadh, Saudi Arabia
In any authoritarian regime, instability seems unthinkable up to the moment of upheaval, and that is true now for Saudi Arabia. But even as American influence recedes across the Middle East, the U.S. soon may face the staggering consequences of instability here, in its most important remaining Arab ally. While a radical regime in Egypt would threaten Israel directly but not America, a radical anti-Western regime in Saudi Arabia - which produces one of every four barrels of oil world-wide - clearly would endanger America as leader of the world economy.
Thirty years of visiting Saudi Arabia, including intensive reporting over the past four years, convinces me that unless the regime rapidly and radically reforms itself - or is pushed to do so by the U.S. - it will remain vulnerable to upheaval. Despite the conventional wisdom that Saudi Arabia is unique, and that billions in oil revenue and an omnipresent intelligence system allow the regime to maintain power by buying loyalty or intimidating its passive populace, it can happen here.
Understanding the Muslim Brotherhood
In 1979, Western thinkers were quick to call the Ayatollah Khomeini 'moderate' and 'progressive.'
By Bret Stephens - WSJ.com ($$)
It's what the good people on West 40th Street like to call a "Times Classic." On Feb. 16, 1979, the New York Times ran a lengthy op-ed by Richard Falk, a professor of international law at Princeton, under the headline "Trusting Khomeini."
"The depiction of [Khomeini] as fanatical, reactionary and the bearer of crude prejudices seems certainly and happily false," wrote Mr. Falk. "What is also encouraging is that his entourage of close advisers is uniformly composed of moderate, progressive individuals."
After carrying on in this vein for a few paragraphs, the professor concluded: "Having created a new model of popular revolution based, for the most part, on nonviolent tactics, Iran may yet provide us with a desperately needed model of humane governance for a third-world country."
Whoops.
Soros and Paulson Remain Goldbugs
247WallStreet.com
Everyone loves to see Warren Buffett's portfolio changes, but in some cases it is more important what other gurus are doing with their assets under management. George Soros and John Paulson are two of these gurus and they are sticking with their gold bets. Soros increased his SPDR Gold Trust by about a half-percent and Paulson kept his holding static.
Soros Fund Management counted 4,721,808 SPDR Gold Trust shares with a date of December 31, 2010. That is up from 4,697,008 shares in the quarter before. Some may have been from call options as those were listed in the third quarter but not this quarter. NovaGold Resources Inc. was another large Soros holding worth for 11,213,000 shares.
Comex Gold gains on UK inflation data, weaker US Dollar
By Jim Wyckoff
(Kitco News) - Comex gold futures prices are trading higher and hit a fresh four-week high Tuesday morning, on a surprise rise in U.K. consumer prices. A weaker U.S. dollar index and an improving technical posture are also supporting fresh investor buying interest in gold. Comex April gold last traded up $8.10 at $1,373.20 an ounce. Spot gold last traded up $10.40 at $1,373.00.
The rise in U.K. consumer price inflation was double the Bank of England's target rate, reports said. While gold reacted bullishly to the U.K. inflation data, the more highly anticipated Chinese inflation data, issued overnight, actually came in lower than expected. Still, with the Continuous Commodity Index at a record high level and with world economies growing more rapidly coming out of recessions, the specter of problematic consumer price inflation worldwide is very real, and many believe very likely, in the coming months. That is gold-market-bullish.
Gold buying in emerging markets turning physical
By Shyamal Mehta
MUMBAI (Commodity Online): Gold prices rose on Tuesday despite negative inflation data from China where it rose by 4.9% year on year for the month of January 2011 from 4.6% a year earlier.
Gold in international markets last traded strong at 1371 USD an ounce. Silver also traded strong at $30.67 per ounce. Gold may find supports at 1350, 1328 and 1308. While, resistance levels are 1395 and 1425.
Gold prices could rise further if it remains strong above 1370 and gives strong closing above the same level. Gold also did not react negatively to strong dollar as USD became strong against major currencies.
Will Silver Do Better Than Gold?
BY STEVE SAVILLE
Many analysts are convinced that silver is going to outperform gold this year and for years to come. Are they right?
We don't know. What we do know is that: a) most of the recent silver-related commentary has focused on silver's upside potential and has not mentioned, or has glossed over, silver's downside risk, and b) silver bulls are generally ignoring the relationship between the silver/gold ratio and the economic growth theme. These two points go together in that silver's downside risk is linked to the potential for the 'growth trade' to collapse.
Silver price at 30-year high
By Debbie Carlson - MarketOracle.co.uk
(Kitco News) - Silver prices are within striking distance of re-testing the 30 year highs set on Jan. 3 at $31.275 an ounce as silver benefits from industrial metal strength and tight physical supplies.
The March silver contract on the Comex division of the New York Mercantile Exchange is currently trading around $30.805, about 47 cents from the January high. Conversely, gold prices remain well-below their all-time high of $1,431.10 an ounce made on Dec. 7, trading around $1,373.
Silver's dual-purpose as an industrial metal and a precious metal is giving it a boost as it follows the rally in copper to its all-time highs, said Mike Daly, precious metals specialist at PFGBEST.
Inflation Warning: Should the Fed Raise Interest Rates?
By PETER COHAN - DailyFinance.com
It's no surprise that prices are rising -- the question is whether the Fed will do something about it. As I pointed out in a Daily Finance article in October, prices of commodities -- including corn, wheat, and cotton -- have recently hit record levels. Demand from emerging markets is strong and increasing as China's 10% annual growth brings more of its 1.3 billion people from the countryside to the cities. And after a bad harvest, the volume of cotton to meet that demand is weak.
Now clothing prices are expected to rise in the U.S. by 10% thanks to those record cotton prices. Winter gasoline prices are higher than they've been in years, and they could rise as the summer driving season approaches. China has started hiking interest rates and forcing banks to raise capital in an effort to rein in inflation there. But the U.S. inflation rate was a mere 0.5% in December according to the Bureau of Labor Statistics.
Fed's Lacker Says Inflation May Rise Later in 2011
By Steve Matthews and Tom Keene
Feb. 15 (Bloomberg) -- Federal Reserve Bank of Richmond President Jeffrey Lacker said U.S. inflation may accelerate in the second half of 2011 as firms seek to recoup higher commodities and health-care costs.
"Firms are looking to the second half to make up for some of the margin squeeze," Lacker said today in a Bloomberg Television interview on "Surveillance Midday" with Tom Keene. "It is not a done deal that inflation will accelerate. But it is this time in the recovery where the potential for inflation accelerating is highest."
Lacker, who is among Fed officials who have said the central bank shouldn't ease more than planned, said any effort by the central bank to push unemployment down at a faster rate in the short run could spark inflation. Last week he said policy makers need to take "quite seriously" their commitment to review the planned purchase of $600 billion in Treasury securities through June, a program aimed at reducing 9 percent unemployment and keeping inflation from slowing.
U.S. to press China on currency
By Charles Riley
NEW YORK (CNNMoney) -- U.S. officials will continue to press China over the manipulation of its currency at this week's G-20 summit, a senior Treasury Department official said Tuesday.
The two-day summit of central bank governors and finance ministers, held in Paris, will take place against the background of a recovering world economy.
But the U.S. remains concerned over the impact of Chinese currency policy on other recovering economies, and officials will make the case that China should allow its currency to appreciate at an accelerated rate, the official said.
So Much Stimulus. So Little to Show for It.
By Bill Bonner - DailyReckoning.com
02/15/11 Baltimore, Maryland - First, let's step back and look at the big picture.
In 2007, after 60 years of stretching credit, the US economy snapped.
Savings rates went up from near zero up to 7%. Houses went into foreclosure. People tossed away their credit cards. Wall Street wobbled... and almost fell.
The feds rushed in, trying to stop the correction.
They threw everything they had into the fight against the big D - deflation, de-leveraging, default, and depression.
Fiscal stimulus, monetary stimulus, unorthodox stimulus - trillions of dollars' worth. The biggest stimulus program of all time - with budget deficits of 10% of GDP... special stimulus spending on "shovel ready" programs for $800 billion... zero interest rates and a total of $1.7 trillion in Fed purchases of mortgage backed securities and US Treasury debt.
What happened?
Pimco's Gross slashes U.S. debt holdings
by Ken Sweet
NEW YORK (CNNMoney) -- PIMCO's Total Return Fund, the world's largest fixed-income mutual fund run by well-known fund manager Bill Gross, slashed its ownership of U.S. government bonds last month to its lowest level since 2009.
The move by Gross reflects the comments made by the fund manager a couple weeks ago when he expressed public displeasure with the low interest rate monetary policies of the Federal Reserve, saying it was "robbing" savers and long-term asset holders.
U.S. government-related securities now make up 12% of the Total Return Fund as of last month, down from 22% in December, according to PIMCO's website.
IRS budget would allow for thousands of new hires
By Charles S. Clark - GovExec.com
President Obama's fiscal 2012 budget includes $1.1 billion in new funds for the Internal Revenue Service, about a 9 percent increase from 2010 levels that would translate to 5,112 new hires, or a 5 percent expansion of enforcement operations. "The new enforcement personnel," says an IRS fact sheet, "will generate more than $1.3 billion in additional annual enforcement revenue once the new hires reach full potential in FY 2014."
The service is focusing its expansion of enforcement on "noncompliance among corporate and high-wealth taxpayers" and on enforcing return preparer compliance," it said, adding, "increased resources for the IRS compliance programs yield direct, measurable results through high return on investment activities" -- a return of 4.5 to 1 that, the service noted, can be used toward deficit reduction.
Healthcare Reform Law Requires New IRS Army Of 1,054
By PAUL BEDARD - USNews.com
The Internal Revenue Service says it will need an battalion of 1,054 new auditors and staffers and new facilities at a cost to taxpayers of more than $359 million in fiscal 2012 just to watch over the initial implementation of President Obama's healthcare reforms. Among the new corps will be 81 workers assigned to make sure tanning salons pay a new 10 percent excise tax. Their cost: $11.5 million.
"The ACA [Affordable Care Act] will require additional resources to build new IT systems; modify existing tax processing systems; provide taxpayer outreach and assistance services; make enhancements to notices, collections, and case management systems to address and resolve taxpayer issues timely and accurately; and conduct focused examinations to encourage compliance," said the newly released IRS budget.
Bernanke's Undying Love of QE2
By Eric Fry - DailyReckoning.com
02/14/11 Laguna Beach, California - Three months ago, Ben Bernanke promised lower mortgage rates and lower corporate bond rates.
He promised.
Quantitative Easing - i.e. the Fed's scheme to print money and buy bonds - would deliver these benefits, Bernanke promised in a November 4, 2010, op-ed piece for The Washington Post. "Easier financial conditions will promote economic growth," the Chairman declared. "For example, lower mortgage rates will make housing more affordable, and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence..."
But the Chairman was wrong. Three months after issuing his promise, interest rates are rising steeply, which is causing mortgage rates to rise as well. Quantitative Easing is not magic. It is a shell game that is producing predictably inflationary results.
A 5-YEAR SCENARIO: 2011-2016
by Charles Hugh Smith - FinancialSense.com
In this scenario, the wheels fall off the debt-fueled global "recovery" and assets bottom in 2014.
Here is one possible scenario for the next five years. Why do I consider this somewhat more likely than other possible scenarios? Here some undercurrents which may be generally under-appreciated:
There is a difference between speculative and organic demand. The two are of course related, as industrial consumers of resources must hedge against rising prices using the same instruments as speculators--futures contracts, etc.
Follow the credit, not just the money. It's not just the U.S. economy which is dependent on cheap, abundant credit--the same can be said of China and the European Union to some degree.
Just because Chinese buyers put 50% down on their fourth flat doesn't mean they don't need credit for the other 50%. Chinese developers are heavily dependent on credit issued or backed by the Central Governments banks and proxies.
Deutsche Boerse $9.53 Billion NYSE Buy May Spur Deals
By Whitney Kisling, Nandini Sukumar and Elizabeth Stanton
Feb. 15 (Bloomberg) -- Deutsche Boerse AG's $9.53 billion all-stock purchase of New York Stock Exchange parent NYSE Euronext creates the world's largest owner of equities and derivatives markets, and may spur additional mergers.
The deal, which gives Deutsche Boerse 60 percent of the combined entity, forms an organization with market share in futures that's similar to Chicago-based CME Group Inc. It would also top CBOE Holdings Inc. of Chicago in U.S. options. Deutsche Boerse's plan follows Singapore Exchange Ltd.'s October bid for ASX Ltd., which runs the Australian stock market, and London Stock Exchange Group Plc's agreement last week to buy Canada's TMX Group Inc.
CRISIS HIGH 2011
Submitted by Clif Droke - FinancialSense.com
After two years of issuing "sell" ratings on equities and making bearish pronouncements on the year-ahead economic outlook, Wall Street has finally turned bullish again. Recent analyst polls reveal the consensus outlook for 2011 is for another year of double-digit stock market gains. Even stalwart bears are starting to sound a more optimistic note on the prospects for continued economic recovery in 2011 and beyond.
One analyst who doesn't share this newfound optimism is far from the conventional Wall Street type. He correctly predicted the 2008 credit crash and also turned bullish in March 2009 following the crisis low. He has made a career of going against the consensus and he's once again staking his reputation against the Wall Street establishment. He believes that far from being the dawn of a bullish economy, 2011 will witness the end of the post-credit crisis economic recovery. He also believes 2011 will witness a "crisis high" in the stock market and most likely a turning point within the context of the long-term cycles.
PART 2: ECONOMY FLIGHT 666 OUR ONE-WAY TICKET TO ZIMBABWE
by Davos Sherman Okst - FinancialSense.com Our biggest deficit
In the fine book "I.O.U.S.A." former Comptroller General David Walker said, "[The] fourth and most serious of all is a leadership deficit." The material I reviewed underscores Walker's observation.
I'm a huge Paul Ryan fan. I'm impressed with his handle on our budget. I give him a tremendous amount of credit for addressing our dismal fiscal situation head on. I commend him for making it the center of his work. This is something most politicians refuse to even mention, let alone address in public.
Congressman Ryan is working to solve it. As much as I like, admire and respect Representative Ryan - I have to sate: He epitomizes Walker's illustration of our biggest deficit. He does not have the economic vision to see the picture and he is therefore stunted from forming a dynamic and cohesive plan that will solve our problems
Clothing Prices to Rise 10% Starting in Spring
By: AP - CNBC.com
The era of falling clothing prices is ending. Clothing prices have dropped for a decade as tame inflation and cheap overseas labor helped hold down costs.
Retailers and clothing makers cut frills and experimented with fabric blends to cut prices during the recession. But as the world economy recovers and demand for goods rises, a surge in labor and raw materials costs is squeezing retailers and manufacturers who have run out of ways to pare costs.
Cotton has more than doubled in price over the past year, hitting all-time highs. The price of other synthetic fabrics has jumped roughly 50 percent as demand for alternatives and blends has risen.
Cotton Hits All-Time High
By LESLIE JOSEPHS - WSJ.com
NEW YORK - Cotton prices hit an all-time high, edging toward $2 a pound and raising the question of whether the fiber's soaring cost will cool demand.
Cotton for March delivery touched $1.9445 a pound in InterContinental Exchange trading on ongoing concerns that demand will outpace supplies. Prices settled up 1.3%, or 2.39 cents, at $1.8997 a pound as some speculators locked in profits.
Strong demand, particularly from China, and tight supplies have pushed cotton prices up 31% this year. The price has more than doubled over the past 12 months.
U.S. Bankruptcy Judge Questions Legal Claims of MERS
By Nick Timiraos - WSJ (free)
A federal bankruptcy court judge issued an opinion on Thursday offering a scathing critique of the Mortgage Electronic Registration Systems, or MERS, the electronic-lien registry system built by the housing-finance industry to facilitate the bundling and selling of pools of mortgages.
The decision by U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, N.Y., didn't change the outcome of the borrower's foreclosure proceeding. The foreclosure had been approved earlier by a state court, and the judge ruled that he didn't have the authority to stop it.
But that didn't stop Mr. Grossman from offering an opinion that he said would have a "significant impact" on the industry by calling into question the rules and procedures that MERS uses to transfer mortgages and handle foreclosures on behalf of the largest U.S. banks.
Securitization Audits-Questioning Securitization of Mortgages Securitization Audits, Forensic Mortgage Audits, Mers and Illegal Foreclosures -- By Jeff Greenberg - ArticlesBase.com
I just watched the latest Michael Moore movie, "Capitalism, a Love Story". This was my second look. I know a lot of people don't think much of Michael Moore. I have a great deal of respect for him. I think some of his tactics are shamelessly gimmicky like pretending to make citizens arrests of executives on Wall Street or standing in front of the Citibank building with a money bag and a Brinks truck and demanding the taxpayers money back, but his point is always well made. In this case his point is that Banks have infiltrated and control the highest levels of US government to the detriment of the entire country. He underscores the slick manipulated congressional robbery of the national treasury by $800 billion with absolutely no judicial oversight after Congress first turned the package down as a result of the millions of calls coming in from the people of each congressional district. No one in government can tell you where this money went. No one from the corporate elite will tell you.
When I think of how these banks and lending institutions are foreclosing on homes using illegal foreclosure Mills I can't help but wonder if Moore isn't entirely correct. This just might be the strongest tell tale sign of the beginning of the end for Capitalism. It seems to be crashing in on itself. Any farmer that kills off his own herd in an orgy of selfish personal gluttony while watching his neighbors starve is not long for the farming business, it would seem to me.
Judge Finds MERS Has No Right To Transfer Mortgages, Finds Entire MERS Process Illegal
Submitted by Tyler Durden - ZeroHedge.com
There was a time when news, especially very bad news, moved stocks. The last time that occurred was in the middle of 2009, before most robots had any idea just how massive the chairsatan's schizoid break with reality was. Now, that the appropriate sociopathology is fully priced in, bad news tends to have an even more profound upside impact on stocks than good news, as it guarantees that the Zimbabwe stock market will be upon us far sooner than if the economy were to have to go through another inter-QE episode. Which is why the just released news out of US Bankruptcy Judge Robert Grossman of Central Islip, New York, that MERS lacks rights to transfer mortgages will likely send the entire S&P circuit breaker up.
From Bloomberg:
"Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said... U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a "significant impact," wrote that the membership rules of the company's Mortgage Electronic Registration Systems, or MERS, don't make it an agent of the banks that own the mortgages..."
How the mortgage clearinghouse MERS became a villain in the foreclosure mess
By Ariana Eunjung Cha and Steven Mufson
Washington Post Staff Writers
Thursday, December 30, 2010; 3:16 PM
In the early 1990s, the biggest names in the mortgage industry hatched a plan for a new electronic clearinghouse that would transform the home loan business - and unlock billions of dollars of new investments and profits.
At the time, mortgage documents were moved almost exclusively by hand and mail, a throwback to an era in which people kept stock certificates, too. That made it hard for banks to bundle home loans and sell them to investors. By contrast, a central electronic clearinghouse would allow the companies to transfer thousands of mortgages instantaneously, greasing the wheels of a system in which loans could be bought and sold repeatedly and quickly.
Housing Crash Bites Deeper; Economic Reality Trumps "It's Different Here";
Unprecedented Double-Dip
Mike Shedlock
The popular housing notions "It's different this time" as well as the highly regarded corollary "It's different here" continue to bite the big one.
While housing in some cities will always carry a premium, fundamentals, especially price-to-rent ratios, property taxes, and wage growth will eventually matter.
Those fundamentals caught up to cities thought to be immune to a housing slump.
Please consider Housing Crash Is Hitting Cities Once Thought to Be Stable
SEATTLE - Few believed the housing market here would ever collapse. Now they wonder if it will ever stop slumping.
The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune - economically diversified cities where the boom was relatively restrained.
Casinos lead Colorado tourism
Denver Business Journal - by Ed Sealover
Colorado casinos are the top producers of economic output in the state's tourism sector, according to a new study commissioned by the Colorado Gaming Association.
Fred Crowley, an economist at the University of Colorado-Colorado Springs, estimated in his study, "The Economic Impact of Colorado's Commercial Casinos," that the state's 40 casinos produce more than $2 billion in annual gross domestic product.
Those businesses create 27,300 jobs at an average income of $44,500 and pay 23 percent of their gross proceeds in taxes and fees, Crowley wrote.
The biggest surprise that the study found was the magnitude of the direct and indirect effects that the casino industry has on the larger economy.
Senate extends the Patriot Act for three months in 86-12 vote
By Josiah Ryan - TheHill.com
The Senate on Tuesday voted 86-12 Tuesday to extend the Patriot Act for three months.
The vote came one day after the House passed legislation extending the Patriot Act until Dec. 2011.
Due to an amendment tacked on to the House bill by Senate leaders Harry Reid (D-Nev.) and Mitch McConnell (R-Ky.) earlier Tuesday the Senate version of the bill only extends the Patriot Act until May 27, 2011.
The bill is H.R. 514, which would let the government access business records, conduct roving wiretaps, and monitor individual terrorists until Dec. 8 of this year.
Hackers Go After the Smartphone
By SONIA KOLESNIKOV-JESSOP - NYTimes.com
SINGAPORE - In September, a virus began infecting more than a million mobile phones in China. Masquerading as an anti-virus application, "zombie" let hackers access the phone's SIM card and automatically send spam text messages to people listed on the phone's address book.
As global sales of smartphones rise quickly, experts are predicting a rise in malware, or malicious software, and other security threats that are spread through mobile devices.
"So far, malware on mobile phones has not been a major issue," said Arun Chandrasekaran, a research manager at Frost & Sullivan, a global business consultant, in Sydney. "But mobile security has the potential to be exploited quite easily by hackers, and it's only a matter of time before it starts happening."
OBAMA THE ARMS DEALER
Truthdig.com
With the U.S. already maxing out the credit card with roughly a trillion dollars a year on defense spending, America's weapons industry has been forced to look elsewhere for buyers. Luckily for the military-industrial complex, there's an eager salesman in the White House.
Fortune:
As defense giants like Boeing, Raytheon (RTN, Fortune 500), and Lockheed Martin (LMT, Fortune 500) increasingly seek to peddle their wares to well-financed (sometimes by the U.S.) international customers, they have a surprising ally: the President. "Obama is much more favorably disposed to arms exports than any of the previous Democratic administrations," says Loren Thompson, a veteran defense consultant. Or, as Jeff Abramson, deputy director of the Arms Control Association, puts it: "There's an Obama arms bazaar going on."
Activist Judges Strike Again
By Stanley Kutler - Truthdig.com
Wisconsin Attorney General J.B. Van Hollen may have created a new gold standard for constitutional ignorance. The recent decision by a Florida federal judge to strike down the whole of the new federal health care law, a decision at odds with two other rulings, prompted Van Hollen to declare that "effectively, Wisconsin was relieved of any obligations or duties that were created" under terms of the law. Even the judge stayed his ruling pending appeal.
Van Hollen's statement takes one's breath away, and puts him in the ashcan with South Carolina and other states that have ventured various forms of interposition. That civil war ended nearly 150 years ago - or so we thought. Van Hollen quickly retreated, saying he had not advised the governor to halt implementation in Wisconsin. (After recently assuming office, the governor rejected millions of federal dollars for a proposed Midwest high-speed rail system. He wanted the money instead for road builders, who lavishly supported him. The Obama administration rejected his demand, wisely, as he had good reason to know it would.)
France wants new global finance system France will help the transition to a global financial system based on 'several international currencies', the French Economy Minister said today.
RTÉ News
France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today.
Lagarde, speaking ahead of a G20 finance ministers meeting in Paris on Friday and Saturday, said the world had to move on from the 'non-monetary system' it now has to one 'based on several international currencies'.
Accordingly, France wants to see less need for countries, especially the emerging economies, to accumulate huge foreign reserves, she said.
Tunisia's 'Biblical exodus' pits Rome against Brussels
By VALENTINA POP
EUOBSERVER / BRUSSELS -Italy refused EU help in dealing with Tunisian migrants and its criticism of Brussels is "very surprising", EU home affairs commissioner Cecilia Malmstrom said Monday (14 February). Meanwhile, Tunis deemed "unacceptable" a suggestion that Italian troops be sent to stop people from crossing the Mediterranean.
Ms Malmstrom was "very surprised" by the recent press statements of Italian officials, her spokesman, Michele Cercone said during a press conference in Brussels.
Contrary to what Italian interior minister Roberto Maroni had suggested, that the EU commission is too slow and bureaucratic in helping out with the thousands of migrants arriving on the tiny Italian island of Lampedusa, Ms Malmstrom contacted Italian authorities on Saturday and asked if they needed help, said the official.
EU Parliament chief condemns Algeria crackdown
By LEIGH PHILLIPS
EUOBSERVER / BRUSSELS - European Parliament President and one-time Polish democracy activist Jerzy Buzek has called on Algeria's pro-Western government, ostensibly an elected constitutional republic but whose military retains a veto over decision-making, to release democracy activists that have been arrested.
Over the weekend, the government cracked down on pro-democracy demonstrations that had sprung up in the wake of the fall of Egypt's Hosni Mubarak. The interior ministry claims that 14 people were arrested, but human rights groups say that around 300 individuals have been detained.
Anti-government protests spread to Iran
By Thomas Erdbrink - Washington Post
TEHRAN - Crowds of demonstrators battled security forces armed with tear gas and batons during a surprisingly large anti-government protest in the Iranian capital Monday that drew inspiration from the recent popular uprisings in Egypt and Tunisia.
Dodging clouds of tear gas fired by police and pro-government militiamen, the protesters marched down a central boulevard and shouted slogans such as "Death to the dictator," "We are all together" and "Down with Taliban, in Cairo and Tehran."
Iran protests see reinvigorated activists take to the streets in thousands Riot police and basiji militia use teargas on protesters, with reports that one demonstrator was killed in clashes
By Saeed Kamali Dehghan - guardian.co.uk
Thousands of defiant protesters in Iran's capital have clashed with security officials as they marched in a banned rally. One person was reported killed, with dozens injured and many more arrested.
Supporters of the Green movement appeared in scattered groups in various locations in central Tehran and other big cities in what was seen as the Iranian opposition's first attempt in more than a year to hold street protests against the government.
The riot police and government-sponsored plainclothes basiji militia used teargas, wielded batons and opened fire to disperse protesters who chanted "death to the dictator", a reference to both Iran's supreme leader, Ali Khamenei, and the president, Mahmoud Ahmadinejad.
Tehran streets mostly empty after protesters clash with police
By the CNN Wire Staff
Tehran, Iran (CNN) -- Tens of thousands of demonstrators who marched in Tehran in defiance of the Iranian government were largely cleared from the city's streets by nightfall.
Patrolling security forces had battled protesters with batons and tear gas for much of the day.
The wave of people who marched along Revolution Avenue on Monday had remained largely silent as they walked toward the capital's Azadi Square, though at times they clashed with Iranian security forces who tried to disperse the marchers and divert them from the square.
By day's end, dozens of demonstrators had been detained while internet videos showed others had been chased and beaten.
Arrests and deaths as Egypt protest spreads across Middle East Iranians defy government ban to join rally in Tehran, with demonstrations and street clashes in Bahrain and Yemen
By Ian Black, Middle East editor - guardian.co.uk
Egypt's uprising has sent powerful shockwaves across the Middle East , with two deaths reported in street clashes in Iran and Bahrain and violent demonstrations in Yemen, as further protests and strikes erupted across Egypt.
Thousands of Iranians defied a government ban and volleys of teargas to join a rally in Azadi Square in the centre of Tehran. The protests were the biggest since those that erupted after the disputed 2009 presidential elections.
Mir Hossein Mousavi, leader of the Iranian Green movement, was placed under house arrest, as was Mehdi Karroubi, another prominent opposition figure. Protest rallies were also held in Isfahan and Shiraz.
Dawn of Egypt's democratic experiment
By Salman Shaikh, Special to CNN
(CNN) -- As people of all generations and backgrounds celebrate across Egypt this weekend, we are seeing history unfold. "Umm al-Duniya," the "mother of the world," has reawakened. So will the rest of its children around the region. Egyptians have changed the face of the region forever.
For too long, Egyptians have been in slumber, their lives marred by a sense of loss and by life's everyday indignities. Held back by the "big brother regime," which knew best for its people, the citizens lived under a collective sense of inferiority.
As Egypt uprising inspires Middle East,
Iran sees biggest protests in a year
By Thomas Erdbrink and Liz Sly - Washington Post
TEHRAN - Violent protests erupted in Iran, Yemen and Bahrain on Monday as the revolutionary fervor unleashed by the toppling of Egyptian President Hosni Mubarak rippled across the Middle East, propelling people onto the streets to demand change from a spectrum of autocratic regimes.
In the tiny island kingdom of Bahrain, home to the U.S. Navy's 5th Fleet, thousands of demonstrators marched to call for reforms to their hereditary monarchy, clashing with police who fired tear gas and rubber bullets. In Yemen, a key U.S. counterterrorism ally, government supporters armed with sticks and knives attacked pro-democracy protesters calling for the ouster of Yemen's dictatorial president, in the fourth straight day of protests in that troubled Arab nation.
Egypt, The Distance Between Enthusiasm and Reality
By: STRATFOR - MarketOracle.co.uk
On Feb. 11, Egyptian President Hosni Mubarak resigned. A military council was named to govern in his place. On Feb. 11-12, the crowds that had gathered in Tahrir Square celebrated Mubarak's fall and the triumph of democracy in Egypt. On Feb. 13, the military council abolished the constitution and dissolved parliament, promising a new constitution to be ratified by a referendum and stating that the military would rule for six months, or until the military decides it's ready to hold parliamentary and presidential elections.
What we see is that while Mubarak is gone, the military regime in which he served has dramatically increased its power. This isn't incompatible with democratic reform. Organizing elections, political parties and candidates is not something that can be done quickly. If the military is sincere in its intentions, it will have to do these things. The problem is that if the military is insincere it will do exactly the same things. Six months is a long time, passions can subside and promises can be forgotten.
Stupidity, Intelligence, and Egypt
By Jed Babbin - The American spectator.org
If you want to understand why our power to influence world events is a shambles, you need only to listen to what came out of the White House, the CIA and the Director of National Intelligence this week in response to the crisis in Egypt.
Start with a point so basic that even liberals should agree with it: if you lack timely, accurate and expertly-analyzed intelligence on other peoples and nations, the making of foreign policy is reduced to mere guesswork. American policymakers have -- roughly since Jimmy Carter and his CIA director, Stansfield Turner, decided that we really don't need spies -- been reduced to guessing what the world is doing.
Ron Paul: Making Mubarak a puppet dictator our mistake
Egypt-Inspired Protests Erupt in Bahrain, Iran, Yemen
By Glen Carey and Terry Atlas
Feb. 15 (Bloomberg) -- Demonstrators clashed with security forces in Bahrain, Yemen and Iran yesterday, emboldened to challenge ruling regimes by the success of Egypt's populist uprising against President Hosni Mubarak.
Bahraini riot police fired tear gas to break up protests across the island nation, and one man reportedly was shot dead by police, as demonstrators demanded more political freedom and jobs. Yemeni protesters announced plans for a fifth day of demonstrations after thousands gathered yesterday at Yemen's Sanaa University to demand President Ali Abdullah Saleh step down, clashing with police and pro-government demonstrators who hurled stones and wielded clubs.
In Yemen, female activist strives for an Egypt-like revolution
By Sudarsan Raghavan - Washington Post
SANAA, YEMEN - Tawakkol Karman sat in front of her laptop, her Facebook page open, planning the next youth demonstration. Nearby were framed photos of her idols: Dr. Martin Luther King Jr., Mahatma Gandhi and Nelson Mandela. These days, though, Karman is most inspired by her peers. "Look at Egypt," she said with pride. "We will win."
In a nation where women are considered second-class citizens, Karman is determined to replicate a nonviolent Egypt-style revolution in impoverished Yemen, where young people are grappling with many of the same frustrations felt across the region.
As the nation's most vocal and well-known activist, the 32-year-old mother of three is helping to shatter perceptions of women in this conservative society, while emboldening a new generation of Yemenis to demand an end to President Ali Abdullah Saleh's three-decade-long grip on this country.
Clashes in Bahrain before planned protest rally
By BRIAN MURPHY - The Associated Press
DUBAI, United Arab Emirates -- Bahrain's security forces fired tear gas and rubber bullets Monday at thousands of anti-government protesters heeding calls to unite in a major rally and bring the Arab reform wave to the Gulf for the first time.
The punishing tactics by authorities appeared to foil plans for a mass gathering in Bahrain's capital Manama, but it underscored the sharply rising tensions in the tiny island kingdom - a strategic Western ally and home to the U.S. Navy's 5th Fleet.
At least 25 people were treated for injuries, and one man died after being found on the street with severe head trauma, according to family members.
Egypt Plans Stimulus to Revive 'Sudden Stop' Economy
By Alaa Shahine and Maram Mazen
Feb. 14 (Bloomberg) -- Ashraf Abdel-Wanis had plenty of reasons to join tens of thousands of fellow Egyptians in their successful push to oust President Hosni Mubarak. At 39, he last worked five years ago in a sugar factory and now gets by mainly on his wife's $50 monthly salary and his mother's pension.
"The Egyptian family's nutrition consists of beans, lentils and beans," he said in an interview in Cairo's Tahrir Square, the plaza at the heart of almost three weeks of protests. "If they're lucky, they cook vegetables once a week."
Middle East political uncertainty to support gold
By Allen Sykora - CommodityOnline.com
(Kitco News) - Egyptian President Hosni Mubarak may have resigned, but the potential for further political unrest in the Middle East remains a supportive factor for gold futures, particularly if a new crisis emerges.
"Despite the calmer times in Egypt, there is still the thought there will be more unrest or social upheaval in the Mideast in general," said Frank Lesh, broker and futures analyst with FuturePath Trading. "We're seeing some of that today with Algeria. The flight to safety is still there."
Shortly before the close of pit trading, most-active April gold was $4.70, or 0.3%, higher at $1,365.10 an ounce on the Comex division of the New York Mercantile Exchange.
Analysing the pro-gold fundamentals
By Jeff Nichols - CommodityOnline.com
Clients and readers of NicholsOnGold.com should not be surprised by gold's recent rebound.
In late January, as gold was testing recent lows near $1,310 an ounce, we said "the fundamentals suggest much higher prices ahead" with "market activity strengthening the case for a surprisingly sharp snapback and new all-time highs later this year."
Indeed, we anticipate gold will retake its all-time high near $1,432 an ounce in the months ahead . . . and reach $1,700 later this year . . . on its way to $2,000 an ounce in 2012 . . . and still higher prices in the next few years.
Gold companies criticised for treatment of customers Three companies that buy gold from consumers by post have been criticized for the treatment of their customers.
By Myra Butterworth - Telegraph.co.uk
CashMyGold, Cash4Gold and Postal Gold agreed to make changes following an investigation by the Office of Fair Trading. Two other companies - CashYourGoldNow and Money4Gold - have ceased trading.
Companies that swap people's gold for cash have soared in popularity in recent years as households struggle for income amid the economic downturn and the rising cost of living.
Consumers send in their gold by post to be assessed, then received payment back in the post.
COMEX Default Or Hunt Brothers Redux? COMEX Silver Inventories Drop To 4 Year Low
by Tyler Durden - ZeroHedge.com
From GoldCore -- Silver Bullion COMEX Stocks at 4-Year Low as Backwardation Deepens
Gold and silver are higher after last week's 1% and 3.5% gains in dollars. Silver is particularly strong again this morning and the euro has come under pressure as bonds in Ireland, Spain, Portugal and Greece continue to rise. While Asian equity markets were higher, European indices have given up early gains.
Silver's backwardation has deepened with spot silver at $30.16/oz, March 2011 contract at $30.13/oz and April's at $30.00/oz. While spot silver has risen nearly 1% so far today, the July 2012 futures contract was down 0.187% to $29.81/oz.
The American Dream:
It's the Bank versus the Republic
Silver Shortage Blamed on "Miner Hedging" as Price Rises with Gold, Global Inflation Data Eyed
By: Adrian Ash - MarketOracle.co.uk
THE PRICE OF gold and silver rose back to last week's highs early in London on Monday, hitting $1364 and $30 per ounce respectively even as the US Dollar rose to 1-month highs on the currency market.
European stock markets slipped but government bonds and commodity prices were little changed after China reported a further rise in its imports, led by a 5.7% rise in copper demand.
"Physical market is still absent," said one Hong Kong gold dealer in a note, citing a "lukewarm" premium and low trading volumes in Asia's bullion markets despite the return of Chinese traders after the Lunar New Year.
"There is plenty of data out this week," says Standard Bank today, "but of particular importance to precious metals will be the inflation numbers" due from China, the US and the UK.
Why Commodities are Being Driven by Inflation and Supply Worries
Written by Jordan Roy-Byrne -OilPrice.com
The mainstream press loves to talk about emerging market demand as a cause of inflation, rising prices and the bull market in commodities.
Did emerging markets suddenly begin demanding food, energy and metals in 2001? What about five and ten years earlier? Its a rhetorical question. The conventional wisdom is wrong.
Inflation is driven by low interest rates and lax credit conditions. Severe inflation is driven by the inability to finance or grow out of debt.
Commodity bull markets are primarily driven by monetary factors. Secondarily, a lack of production eventually leads to much higher prices. Commodity industries are cyclical in the long-term. They go from periods of oversupply to periods of underproduction which then creates a lack of supply and a need for higher prices to stimulate new production.
Geithner Tells Obama Debt Expense to Rise to Record
By Daniel Kruger and Liz Capo McCormick
Feb. 14 (Bloomberg) -- Barack Obama may lose the advantage of low borrowing costs as the U.S. Treasury Department says what it pays to service the national debt is poised to triple amid record budget deficits.
Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative deficits of more than $4 trillion through the end of 2015, according to page 23 of a 24-page presentation made to a 13-member committee of bond dealers and investors that meet quarterly with Treasury officials.
U.S. Banks Say Fed Should Scrap Proposed Debit Caps
By Justin Doom
Feb. 14 (Bloomberg) -- The Federal Reserve Board's proposed caps on debit-card transaction fees have drawn "broad and deep opposition" from U.S. banks and payment networks and should be withdrawn, according to an industry panel.
The Fed's approach "misinterprets and misapplies the Durbin amendment," said a summary of a meeting between the Board of Governors and the Federal Advisory Council dated Feb. 4 and released today by the central bank. "The results would be extremely damaging to consumers, the U.S. payment systems and financial institutions of all sizes."
Trade and Monetary Issues Top Agenda at G-20 Meeting
By LIZ ALDERMAN - NYTimes.com
PARIS - Developed economies still recovering from the financial crisis are looking for ways to regain momentum as the global economy shifts in favor of China and other emerging markets.
That task will be high on the agenda when finance ministers of the Group of 20 leading economies meet here this week, three months after President Obama and other G-20 leaders sparred at a tension-filled gathering in Seoul over how to resolve the trade, currency and monetary imbalances that are widening a divide in the world economy.
Signs of trouble that had worried officials before the global financial crisis - volatile capital flows, exchange rate pressures and rapidly growing foreign-exchange reserves - have been gathering new momentum in emerging markets. Dominique Strauss-Kahn, managing director of the International Monetary Fund, warned in a recent speech that these issues could cause the next crisis if left unresolved.
Obama tests bond markets with mega-deficits
US President Barack Obama faces a stiff battle with Republican foes in Congress after unveiling plans for $7.2 trillion (£4.5 trillion) of deficit spending over the next decade, and making little attempt to control the spiralling costs of social security and medical entitlements.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Mr Obama proposed a budget that will push the this year's deficit to a fresh record of $1.65 trillion or 11pc of GDP, partly due to payroll tax cuts agreed with Congress last Autumn. It is unprecedented to run deficits on this scale two years into recovery.
While he called it a budget of "hard choices and sacrifices" needed to return the US to a sustainable debt trajectory, the deficit is significantly above the $1.5 trillion recommended by the Congressional Budget Office (CBO).
Paul Ryan, Republican chair of the House Budget Committee, accused Mr Obama of a "total abdication" of leadership. "I expected more taxes, but I also expected more spending controls or reforms, but we're not getting any of it."
Treasuries Rise on Attractive Yields, Obama Deficit-Cut Plans
By Cordell Eddings
Feb. 14 (Bloomberg) -- Treasury 30-year bonds gained for a second day as yields at almost the highest level in 10 months bolstered demand and the Obama administration submitted a budget plan that included $1.1 trillion in deficit cuts during 10 years.
Bonds strengthened as the Federal Reserve completed its first of four rounds of U.S. securities purchases this week. Yields rose earlier before government reports this week forecast to show U.S. retail sales and industrial production gained in January, boosting demand for assets linked to growth.
SchiffRadio.com Exclusive!
Peter Wallison of FCIC says investigation was COOKED! [Part 1]
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Peter Wallison of FCIC says investigation was COOKED! [Part 2]
What the budget says about America
By Ezra Klein - Washington Post
American politics is one long argument about what government should or shouldn't be doing, and how it should or shouldn't be doing it. It's rare that we step back, take in the larger picture and ask what it is doing. The release of the president's proposed 2012 budget is a good time to do that. If you want to know what the federal government is really doing, just look where it's spending our money.
Two of every five dollars goes to Social Security, Medicare or Medicaid, all of which provide some form of insurance. A bit more than a buck goes to the military. Then there's a $1.50 or so for assorted other spending - education, infrastructure, environmental protection, farm subsidies, etc. Some of that, such as unemployment checks and food stamps, is also best understood as forms of insurance. And then there's another 40 cents of debt repayment. Calvin Coolidge once said the business of America is business. Well, the business of the American government is insurance. Literally. If you look at how the federal government spends our money, it's an insurance conglomerate protected by a large standing army.
Obama's 2012 Budget: Why Federal Spending Needs to Be Raised, Not Cut
By JONATHAN BERR - DailyFinance.com
The battle cry in Washington today is to cut federal spending now and ask questions later. So, President Obama's proposed $3.7 trillion spending plan for 2012 seeks to slash $1.1 trillion from the deficit over the next decade. But cutting too fast, too deeply may undermine the fragile U.S. economic recovery.
Among the cuts being eyed are $100 billion over 10 years from Pell Grants, which help 9 million students get an education, along with funding for airports and waste-water treatment plants and a five-year freeze on non-security domestic spending. Some taxes would increase for couples earning $250,000 or more. The plan would also ax $78 billion from the Defense budget over the next five years. But it includes increased investments in infrastructure programs such as high-speed rail and education.
Time to Get Serious About the Deficit
By Megan McArdle - TheAtlantic.com
I don't need to tell you what I think of the budget: it's disastrous. The minimum projected budget deficit for the next 10 years is 2.9% of GDP in 2018. Now, 2.9% of GDP is--just barely--sustainable; it's about the maximum deficit that we can run and not drive the government's fiscal ship onto the rocks. But when that's the best you can do--when you're only getting that low at the tip-top of the business/tax cycle--you're in deep trouble. What happens when there's another slowdown?
Conservatives will be very unhappy that the budget permanently ratchets spending up to 23% of GDP. But liberals shouldn't be too happy either--the president still hasn't found a way to get tax revenues above 20% of GDP. And us deficit hawks--well, I'll be out back with a fifth of Ardbeg if anyone needs me.
Keiser Report: United States and the Deathly Deficit
Obama defends $3.7T budget; deep cuts needed 'to walk the walk'
By Sam Youngman and Erik Wasson - TheHill.com
Steep cuts are necessary to rein in the deficit, President Obama said Monday in defending his 2012 budget.
The president also defended new spending proposed by his budget in infrastructure, education and broadband access as critical to helping U.S. businesses and workers compete in the global economy.
Cuts in the $3.7 trillion budget are a "down payment" on even deeper cuts Obama said he would work with both parties in Congress to make.
He said the cuts to education, housing and home heating assistance to the poor include reductions to programs "I care about deeply."
Not good enough: Tea Party freshmen sink Republican spending plan
By Erik Wasson
Chastened GOP leaders promised Thursday to find a full $100 billion in spending cuts after freshmen lawmakers torpedoed a proposal that they said betrayed the party's "Pledge to America."
In a stinging rebuke to party leadership, Republicans on the Appropriations Committee abandoned plans to seek only $74 billion in cuts just hours before their continuing resolution was set to be unveiled.
The abrupt reversal set off a mad scramble among Republican staffers to scrape together the extra cuts in time to unveil the final spending resolution by Friday.
Bernanke Defends Lehman Action to 'Deathbed' at FCIC
By Scott Lanman
Feb. 14 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said he would defend to his "deathbed" his actions prior to the bankruptcy of Lehman Brothers Holdings Inc., in an interview with the commission probing the causes of the financial crisis.
"I will maintain to my deathbed, that we made every effort to save Lehman, but we were just unable to do so because of a lack of legal authority," Bernanke said, referring to the 2008 failure that intensified a crisis that Bernanke said was the worst in history, according to an 89-page transcript of the interview published today by the Financial Crisis Inquiry Commission.
Without Fannie and Freddie, Mortgage Securitization Must Return
By Daniel Indiviglio - TheAtlantic.com
Although bond investors might not be thrilled about the government's decision to withdraw a significant amount of its mortgage market support and slowly wind down Fannie Mae and Freddie Mac, Wall Street should see it as an opportunity. This means that now it must be more involved in the mortgage funding process more than ever before. A more privatized mortgage market should signal the return of mortgage securitization and a new covered bond market, unless regulation gets in the way.
Perpetual Liabilities An endless note on your house you can never pay off
By Mike Shedlock
Imagine the perpetual loan, a loan that no matter what you do, you can never pay off. To help conceptualize the idea, think of it as a perpetual interest-only loan in which you are forbidden to completely pay off principal.
As preposterous as that deal may sound, it is highly likely you are in one.
If you own a house, you are in exactly that deal, except it conveniently not called interest. Instead it's called a property tax.
This is a post I have been meaning to write for years. However, I was finally inspired by a reader "Russell" who writes ...
Seattle's Foreseeable Housing Bust
By DAVID LEONHARDT - NYTimes.com
David Streitfeld reports from Seattle, where house prices are falling:
At the peak, a downturn in real estate in Seattle was nearly unthinkable. In September 2006, after prices started falling in many parts of the country but were still increasing here, The Seattle Times noted that the last time prices in the city dropped on a quarterly basis was during the severe recession of 1982.
Two local economists were quoted all but guaranteeing that Seattle was immune "if history is any indication." A market-risk index from PMI Mortgage Insurance gave the odds of Seattle prices dropping at a negligible 11 percent.
Grapes Of Wrath 2011
By: James Quinn - MarketOracle.co.uk "And the great owners, who must lose their land in an upheaval, the great owners with access to history, with eyes to read history and to know the great fact: when property accumulates in too few hands it is taken away. And that companion fact: when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed."- John Steinbeck - Grapes of Wrath
John Steinbeck wrote his masterpiece The Grapes of Wrath at the age of 37 in 1939, at the tail end of the Great Depression. Steinbeck won the Nobel Prize and Pulitzer Prize for literature. John Ford then made a classic film adaption in 1941, starring Henry Fonda. It is considered one of the top 25 films in American history. The book was also one of the most banned in US history. Steinbeck was ridiculed as a communist and anti-capitalist by showing support for the working poor. Some things never change, as the moneyed interests that control the media message have attempted to deflect the blame for our current Depression away from their fraudulent deeds. The novel stands as a chronicle of the Great Depression and as a commentary on the economic and social system that gave rise to it. Steinbeck's opus to the working poor reverberates across the decades. He wrote the novel in the midst of the last Fourth Turning Crisis. His themes of man's inhumanity to man, the dignity and rage of the working class, and the selfishness and greed of the moneyed class ring true today.
Gerald Celente on The Ray Appleton show
The Two Roads Out of Recession
By: Shamus Cooke - MarketOracle.co.uk
Recent events in Washington, D.C. should provoke fear and outrage in the average American worker. As the jobs recession staggers on, politicians and labor leaders alike seem bizarrely distanced from reality, unable to advance any ideas that remotely correspond to the basic demands of those tens of millions of unemployed, under-employed, or poorly paid workers.
Instead, what we get is President Obama's recent groveling to the corporate-dominated Chamber of Commerce, pleading with them to hire workers. The President's recent speech to the Chamber implied many dangers, which neither labor federation-- AFL-CIO and Change to Win -- bothered to point out. In fact, the AFL-CIO applauded sections of the speech, rather than condemning its sinister motives. If labor unions align themselves with the President's and the Chamber's pro-corporate path out of the recession, a workers' road to recovery will be bypassed.
ObamaCare and the Medicaid Mess States need relief from the program's inflexible rules and escalating costs.
By PETER SUDERMAN - WSJ.com
Facing growing resistance to Medicaid costs, the Obama administration's Health and Human Services secretary, Kathleen Sebelius, sent a letter to states last week noting the "urgency of your State budget concerns" and suggesting some minor program changes to save money. They aren't enough.
At roughly 21% of total state spending, Medicaid is already the single largest item in state budgets, according to the National Association of State Budget Officers. Between 2008 and 2009 (the latest year for which figures are available), annual spending growth on the program nearly doubled, growing to 9% from 4.9%.
Medicaid currently covers 53 million people at an overall cost of $373.9 billion (states are responsible for about half). But starting in 2014, ObamaCare rules will add about 20 million more, according to Richard Foster, the program's chief actuary.
GM to pay more than $400 million in worker bonuses
APNews - TownHall.com
Less than two years after entering bankruptcy, General Motors will extend millions of dollars in bonuses to most of its 48,000 hourly workers as a reward for the company's rapid turnaround after it was rescued by the government.
The payments, disclosed Monday in company documents, are similar to bonuses announced last week for white-collar employees. The bonuses to 76,000 American workers will probably total more than $400 million - an amount that suggests executives have increasing confidence in the automaker's comeback.
In the four years leading up to its 2009 bankruptcy, GM piled up more than $80 billion in losses and was burdened by enormous debt and costly labor contracts.
Companies Say Higher Prices Loom
By STEPHANIE CLIFFORD, MOTOKO RICH and WILLIAM NEUMAN - NYTimes.com
A package of Oscar Mayer cold cuts. A pair of Nine West boots. A Whirlpool washing machine.
By the fall, people will most likely be paying more for each of them, as rising prices hit most consumer goods, say retailers, food companies and manufacturers of consumer products.
Cotton prices are near their highest level in more than a decade, after adjusting for inflation, and leather and polyester costs are jumping as well. Copper recently hit its highest level in about 40 years, and iron ore, used for steel, is fetching extremely high prices. Prices for corn, sugar, wheat, beef, pork and coffee are soaring. Labor overseas is becoming more expensive, meanwhile, and so are the utility bills to keep a factory running.
Produce prices skyrocket with freeze in Mexico, Southwest
by Wayne Havrelly, KGW Staff
PORTLAND -- Get ready to pay double or even triple the price for fresh produce in the coming weeks after the worst freeze in 60 years damaged and wiped out entire crops in northern Mexico and the southwestern U.S.
The problem started less than a week ago, when our nation was focusing on the Superbowl and sheets of ice falling from Texas Stadium.
Farmers throughout northern Mexico and the Southwest experienced unprecedented crop losses. Now devastation that seemed so far away, is hitting us in the pocketbooks.
Worst Freeze In 60 Years Wipes Out Entire Crops Across The Southwestern U.S. And Northern Mexico
EndOfTheAmericanDream.com
Get ready to pay a lot more for produce at the supermarket. In early February the worst freeze in 60 years wiped out entire crops all across the southwestern U.S. and northern Mexico. Already, it has been reported that some U.S. supermarkets have doubled or even tripled prices for certain produce items. Yes, you read that correctly. The price of certain vegetables is actually doubling or even tripling in many U.S. supermarkets. The really bizarre weather that we have been seeing all over the globe this winter is really playing havoc with food prices. The global price of food hit an all-time record during the month of January, and most observers expect food prices to continue to soar. Even before this recent horrible freeze in the southwestern U.S. and northern Mexico, global food prices were pushed higher by unprecedented flooding in Australia and Brazil, and key agricultural areas of China are now experiencing their worst drought in 200 years. Things are getting really crazy out there. Produce prices in the U.S. are eventually expected to return back to normal levels, but this just shows how dramatically food prices can change when a major disaster happens.
Keiser Report: Monsanto and the Seeds of Evil
Cold damages Pee Dee cabbage, collard crops
By CONAN GASQUE - SCNow.com
SCRANTON, SC --
Old man winter hasn't been so friendly to some farmers this year, as record-low temperatures have made it difficult for many crops to survive.
Stan McKenzie, owner of McKenzie Farms in Scranton, said the cold weather took all of his cabbage and half of his collards.
"It's depressing sometimes when you lose a crop like this," McKenzie said. "But when you're fighting Mother Nature, you''re going to lose a few battles and you're going to get scarred along the way, so it happens."
The loss in product has also translated into a loss of income for McKenzie, who calls winter vegetables his "mainstay."
"It cuts into my income pretty good because we usually depend on these winter vegetables to kind of help pay the light bills and phone bills and things like that," he said.
U.S. Policy to Address Internet Freedom
By MARK LANDLER - NYTimes.com
WASHINGTON - Days after Facebook and Twitter added fuel to a revolt in Egypt, the Obama administration plans to announce a new policy on Internet freedom, designed to help people get around barriers in cyberspace while making it harder for autocratic governments to use the same technology to repress dissent.
The State Department's policy, a year in the making, has been bogged down by fierce debates over which projects it should support, and even more basically, whether to view the Internet primarily as a weapon to topple repressive regimes or as a tool that autocrats can use to root out and crush dissent.
The House approves Patriot Act extension, sends bill to Senate
By Pete Kasperowicz - TheHill.com
The House approved legislation Monday night that extends the authority of the U.S. government to conduct three specific surveillance activities, which would otherwise expire at the end of this month.
The bill was approved in a 275-144 vote with the support of more than 60 Democrats, and with more than two dozen Republicans in opposition.
House approval of the Patriot Act extensions was all but assured, as most Republicans and some Democrats supported the bill. But this was the second vote on surveillance, as the bill failed to get the necessary two-thirds majority last week when it tried to pass it under a suspension of House rules.
House passes extension of Patriot Act Measure fell short in vote less than a week ago
By Sean Lengell - The Washington Times
The House on Monday passed another extension of the almost decade-old USA Patriot Act - six days after an initial attempt to pass the anti-terrorism law failed in the Republican-controlled chamber to the surprise of GOP leaders.
The bill, which needed a simple majority, easily passed 275-144. The measure was supported by 210 Republicans and 65 Democrats. Twenty-seven Republicans joined 117 Democrats and voted against it.
The overall tally was similar in the 277-148 vote count taken Thursday, when the new Republican majority tried to fast-track it through the House. But the prior attempt - which needed a two-thirds majority - came up seven votes shy of the support required to pass it.
Larry Pratt on Freedom Watch with Judge Napolitano
Argentina accuses US of trying to smuggle weapons into country Diplomatic row over cargo US claims was intended for training programme further sours already poor relationship
By Ewen MacAskill in Washington - guardian.co.uk
Relations between the US and Argentina have deteriorated after Buenos Aires lodged a formal complaint over a US military plane that landed late last week carrying guns, drugs and satellite phones.
The Argentinian government claimed the US was trying to sneak the weapons into the country, though it didn't offer an explanation of why Washington might want to do this.
The US state department said the consignment was intended for a police training programme in Argentina.
Officials from Argentina and the state department have been in talks aimed at resolving the row.
Talking About the Real China
By George H. Wittman The American Spectator.org
In a recent column Yang Yao, the esteemed director of the China Center for Economic Research at Peking University, explained China's economic reasoning as "moving in a statist direction." It was as if the past sixty years had not existed. Were we to believe that the PRC has not been a nation of political, economic and social totalitarianism all this while?
It was a beautiful argument built on statistical discovery and contemporary academic obfuscation. The need for not allowing the renminbi to float freely in the international market is all justified as necessary government actions based on Beijing's commitment to "ensure strong employment and social stability." Ah, yes, and the non-convertibility of the ruble during Stalin's time in the USSR was to protect against Western exploitation. That explanation was as specious then as the contemporary Beijing version is now.
U.S. closes four small banks
Banks closed on Friday have total of 19 branches (Adds two more bank failures)
Feb 11 (Reuters) - U.S. banking authorities closed small banks in California, Florida, Michigan and Wisconsin on Friday, bringing the total number of bank failures in 2011 to 18.
The Federal Deposit Insurance Corporation (FDIC) announced the following closures on Friday:
Peoples State Bank, based in Hamtramck, Michigan, with 10 branches...
Canyon National Bank in Palm Springs, California, was closed. Canyon National Bank's three branches ...
Sunshine State Community Bank of Port Orange, Florida, which has five branches...
Badger State Bank of Cassville, Wisconsin...
Mideast Unrest Spreads Protests Target Iran, Bahrain, Libya;
Egypt Dissolves Parliament, Sets Elections
By MARGARET COKER, MATT BRADLEY and
TAMER EL-GHOBASHY - WSJ.com
CAIRO - As Egypt's new military leadership suspended the constitution, dissolved parliament and promised fresh elections, demands for similar political reform swept across the Arab world - from Libya to Iran - following the resignation of President Hosni Mubarak.
Egypt's dramatic moves incorporate many demands issued during the mass demonstrations by doing away with the institutional framework that buttressed Mr. Mubarak's three-decade rule. But the military's new road map for governing Egypt in the short term came down by fiat, without input from the political opposition, raising questions about how deeply the military understands the democratic process and the demands of modern politics.
Middle East nations scramble to contain unrest Governments step up political concessions, dole out benefits or prepare the riot police in attempts to keep order after the uprisings in Tunisia and Egypt, which showed people that strongmen may not be needed to protect against sectarian violence or Islamic extremism.
By Kim Murphy, Los Angeles Times
Reporting from Amman, Jordan - To track the growing political movements gaining strength from the uprisings in Egypt and Tunisia across North Africa and the Middle East, one would be well advised to get a planner.
There were Saturday's clashes between demonstrators and police in Algeria, now referred to as #feb12 on Twitter, much as Egypt's uprising shall forever be known as #jan25. New popular protests are scheduled Monday in Bahrain (#feb14) and Iran (#25Bahman). Libya comes next on #feb17, followed by Algeria again on #feb19, Morocco #feb20, Cameroon #feb23 and Kuwait #mar8.
On Sunday, hundreds of protesters in Yemen - a country whose frustrated population has spent too much time in the streets since the Tunisian uprising to be tied down to a single date - marched toward the presidential palace before being halted by police. More demonstrators took to the streets in the southern city of Taizz.
Gaddafi tells Palestinians: revolt against Israel
By Ali Shuaib and Salah Sarrar
TRIPOLI, Feb 13 (Reuters) - Palestinian refugees should capitalise on the wave of popular revolts in the Middle East by massing peacefully on the borders of Israel until it gives in to their demands, Libyan leader Muammar Gaddafi said on Sunday.
Gaddafi is respected in many parts of the Arab world for his uncompromising criticism of Israel and Arab leaders who have dealings with the Jewish state, though some people in the region dismiss his initiatives as unrealistic.
He was giving his first major speech since a popular uprising in neighbouring Egypt forced President Hosni Mubarak to resign, an event which electrified the Arab world and prompted speculation that other Arab governments could also be toppled.
Iran's green opposition calls rally despite government ban Committee gathers support and asserts constitutional right to protest -- By Saeed Kamali Dehghan - guardian.co.uk
Activists in Iran will go ahead with a banned rally in central Tehran on Monday in defiance of warnings by the regime and a heavy security presence, a figure in the green movement has told the Guardian.
Ardeshir Amir-Arjomand, a spokesman for the former presidential candidates Mir Hossein Mousavi and Mehdi Karroubi, accused the government of hypocrisy in voicing support for protest in Egypt and Tunisia while refusing to allow a peaceful demonstration at home.
Egyptian military imposes martial law Egyptian military dissolves parliament and suspends constitution, but says it will only keep power until elections can be held
By Craig Whitlock and Samuel Sockol - Washington Post Foreign Service
CAIRO - Egypt's military chiefs seized near-complete control of the country Sunday by dissolving the parliament and suspending the constitution. The leaders of the armed forces, however, said they would only keep power for six months, or until new elections can be held.
In the meantime, the Supreme Military Council said it would exercise self-asserted authority to decree new laws and maintain stability, according to a communiqué read on state television. The generals also said they would appoint a committee to overhaul the constitution and put the proposed changes to a popular vote in a referendum.
Egypt shutters banks after new protests from employees, police
By the CNN Wire Staff
Cairo, Egypt (CNN) -- Egypt's new government on Sunday ordered banks closed for the next two days after protests by National Bank workers apparently drove out the head of the institution.
The chairman of the National Bank of Egypt, Tarek Amer, told employees via e-mail that he submitted his resignation on Sunday, according to a person who received the message.
"I was saddened because I could not enter the bank's building today due to hundreds of protesting employees," the e-mail said, according to a bank employee, who was not authorized to speak to the media and asked not to be named.
Egypt's military rejects swift transfer of power
and suspends constitution Ruling military council intends to retain power for six months or longer while elections are scheduled and will rule by decree
By Chris McGreal in Cairo - guardian.co.uk
The Egyptian military has rejected the demands of pro-democracy protesters for a swift transfer of power to a civilian administration, saying it intends to rule by martial law until elections are held.
The army's announcement, which included the suspending of the constitution, was a further rebuff to some pro-democracy activists after troops were sent to clear demonstrators from Cairo's Tahrir Square, the centre of the protests that brought down Hosni Mubarak. "We do not want any protesters to sit in the square after today," said the head of the military police, Mohamed Ibrahim Moustafa Ali. Many agreed to leave but a hardcore refused, saying they would remain until the army took a series of steps toward democratic reform including installing a civilian-led government and abolishing the repressive state of emergency.
Middle East markets recover on Egypt's optimism Share prices have recovered across the Middle East after Egpyt returned to work and the country's military council pledged to uphold international treaties inherited from the Mubarak regime.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Investors brushed aside concerns that violent protests in the gas-rich state of Algeria and further demonstrations in Yemen could destabilise the region, or in any way threaten oil supplies.
Egypt's bourse remains shut and will reopen this week with curbs, but companies with large Egyptian interests rallied on other exchanges. Au Dhabi Dana Gas jumped 4.5pc, while Air Arabia and the telecom group Etisalat both rose 0.9pc. Egypt's EGX 100 index fell 27pc over two weeks before the exchange was closed on January 30 but appears poised for a rebound.
Arabs seize the 'permission to narrate'
by DAN SISKEN - Mondowweiss.com
The Egyptian revolution is bringing with it countless stories about how it happened and what it means for Egypt and the Middle East. Having spent a good number of hours the past two weeks watching and marveling at Al Jazeera's coverage, I sense that one of the stories taking shape amounts to a meta narrative about a shifting balance of media influence between the region and the United States. Just as the Egyptian revolution has liberated the Egyptian people from the grasp of a US-backed authoritarian leader and seems likely to wrench Egypt out of its nearly total reliance on US support and largesse, the Egyptian people--as covered by AlJazeera--may be bringing about a new international media order.
Egypt After Mubarak The best chance since 9/11 for Arabs to join the modern world.
WSJ.com
Hosni Mubarak left Cairo and nearly three decades in power last night, and Egypt erupted with cheers, fireworks and dancing. A better immediate outcome to Egypt's three-week crisis is hard to imagine. Now comes the morning after, and the beginning of another drama for the Arab world's leading nation.
The collapse of the Mubarak regime, wholly unexpected a month ago, offers an overdue opportunity to let Egypt and fellow Arab states catch the global democracy wave that began in 1989. The way to a truly liberal democracy is long and filled with many potential wrong turns. But Egypt starts on it with an enthusiastic mandate for reform, and advantages as well as handicaps.
Vibrant exports will save Spain, and perhaps the euro Nestled in the lush hills of the Basque Country - literally amid birdsong and Pyrennean lambs - a very young company called Industria de Turbo Propulsores (ITP) makes low-pressure turbine engines for half the world's big passenger jets.
By Ambrose Evans-Pritchard, in Bilbao - Telegraph.co.uk
You would never know the plant was there, just as you might never know that the 2m people of the Basque Country are the world's seventh biggest producers of machine tools, or that their astonishing restaurants (mostly fish) boast as many Michelin stars as London.
ITP is one of those Iberian surprises, the sort of company that explains why Spain has seen its global export share (1.8pc) hold steady over the last decade in the face of China's onslaught and the strong euro, while France, Italy, the UK, the US, and Japan have slipped down the league. Spain has almost kept pace with Germany, and not by selling oranges and olives.
Unpredictables could send gold price skyrocketing While the gold price on fundamentals alone should achieve new highs again this year, unpredictables could see the price soaring.
Author: Jeffrey Nichols - MineWeb.com
NEW YORK - Readers of these articles should not be surprised by gold's recent rebound. In late January, as gold was testing recent lows near $1,310 an ounce, we said "the fundamentals suggest much higher prices ahead" with "market activity strengthening the case for a surprisingly sharp snapback and new all-time highs later this year."
Indeed, we anticipate gold will retake its all-time high near $1,432 an ounce in the months ahead . . . and reach $1,700 later this year . . . on its way to $2,000 an ounce in 2012 . . . and still higher prices in the next few years.
Gold Bull Market Parabola
By: Lorimer Wilson - MarketOracle.co.uk
Gold is in an historic Bull Market because most nations are printing their paper currencies like they are going out of style (and maybe they are) as each nation tries to battle off the massive deflationary backdrop of debt that has permeated most of the world. This surge of debt monetization - this devaluing of the U.S. Dollar for one - has set the scene for a parabolic rise in $Gold to $1860, or higher, over the coming months before an intermediate-term correction takes place. Let me explain.
Just today, I read that the Fed has announced that they will buy back $97 Billion of Treasury debt next month which will be an increase in U.S. Dollar (Dollar) inflation next month akin to 25% of the $397 Billion the Fed has already done over the last 7 months since August. This is what the Fed calls QE II, pure debt monetization where new Dollars are printed up and used to buy back our Nation's debt. This is pure Dollar inflation that devalues the Dollar by aggressively increasing the Dollar supply.
Watch the Gold/Silver Ratio
By James Turk
February 12, 2011 - In precious metal bull markets, silver outperforms. Its price climbs at a faster rate than gold's price. The reverse happens in bear markets. Silver's price drops at a faster rate than gold's price. The following chart of the gold/silver ratio illustrates this phenomenon.
At the peak of the last precious metal bull market in January 1980, it took 17.4 ounces of silver to buy one ounce of gold. Thereafter, the ratio turned and started climbing higher.Ê By February 1991, 101.8 ounces of silver were needed to exchange for one ounce of gold. Silver was trading at only $3.50 per ounce, down 93% from its previous bull market peak.
Silver back then was "dirt cheap", but it would not get any cheaper. Silver turned the corner as value oriented buyers recognized a bargain. Since then the price of silver has been generally rising, and has been doing so faster than the spectacular rise in the price of gold. The result is a long-term downtrend in gold/silver ratio. In other words, since 1991, silver has outperformed gold.
Silver in Backwardation and the Emperor, Once Again, Nearly Naked
JESSE'S CAFÉ AMÉRICAIN
Growing panic in Paperville. The central banks have no silver, and the Comex is being depleted. Interesting that the SLV ETF inventories are experiencing large outflows. The patriotic miners are being called upon to hedge their deep storage inventories, that is, unrefined metal in the ground, to provide more paper.
This manipulation of silver and gold could be a John Law class debacle when it is exposed and collapses, depending on how high the leverage in paper has gone. And of course how deeply down the rabbit hole the people are willing to go in the discovery of real value and the truth. Given what has recently transpired, I suspect not too far.
Is Deflation Really A Risk Today?
Graham Summers - SilverBearCafe.com
I've been getting a ton of emails asking me the following question: does deflation pose a REAL risk today?
My response is absolutely. Remember, the entire financial system is broken in the US. Until we take our medicine and deal with the hundreds of trillions of bad debts sitting on the banks' balance sheets, there is ALWAYS the risk of another 2008-type event.
The Federal Reserve has attempted to paper over these issues by offering Wall Street an endless stream of Dollars. But this hasn't addressed the underlying issues in any way. The banks are still insolvent and the derivatives market is still the primary concern for anyone who works in finance whether they know it or not.
So yes, deflation is and always will be a potential threat that can erupt at any time. However, should deflation even take hold of the markets again, the Fed and other central banks' responses will GUARANTEE that it is short-lived and that inflation, then hyper-inflation takes over in a short period of time.
Inflation data may fuel concerns
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) - At the moment, cooler heads are not prevailing in financial markets about inflation, and data in the coming week may add fuel to the fire.
There is a cacophony of experts arguing that the Federal Reserve's easy monetary policy is bound to set off a severe destabilizing bout of higher prices.
Bruce McCain, chief investment strategist, Key Private Bank, said inflation is already higher than government statistics suggest and is inhibiting growth.
One reason the unemployment rate has been stuck above 9% is that small business profits are already under pressure from higher input prices and they are reluctant to expand, McCain said.
Federal Reserve Chairman Ben Bernanke's effort to point out that underlying inflation remains tame despite some "highly visible" gains in gasoline and other commodity prices have so far fallen on deaf ears.
Inflation: how scared should we be? The anxious wait for Tuesday's CPI figures.
By Philip Aldrick, and Emma Rowley - Telegraph.co.uk
In a quiet corner of a Newport office, a group of 10 statisticians worked late into the night on Friday to put the finishing touches to January's inflation update. Theirs looks like any other open-plan office, except that the Office for National Statistics prices team works alone and keeps its market-moving documents hidden in safes over the weekend.
Having already double- and triple-checked the newly updated weightings, tweaked annually, for the basket of goods and services that are used to calculate consumer price inflation (CPI), their final tasks were to identify the likely talking points in the data and pre-empt the likely questions their team leader, Darren Morgan, will face.
Inflation, Hyperinflation and Real Estate
By Gonzalo Lira
Most people in the advanced economies - including most economists - really don't have any idea what inflation and hyperinflation is. They don't have a clue because they haven't lived through it, or were children when it happened in the States and in Europe during the Seventies.
They think it's nothing more complicated than a rise in prices that ripples through the economy - like a spectator in a football stadium who stands up, obliging the people sitting behind him to also stand up, so that they too can see the action on the pitch, which in turn forces the people behind them to stand up too, until finally, the whole stadium is up on its feet.
That's what these people seem to think: Inflation - and the more severe hyperinflation - affects all goods and services and asset classes equally, in a rippling effect. Sort of like a rising tide.
Because of this very foolish fallacy, many economists and interested observers think that real assets - commodities, land, buildings, factories & machinery - all rise in price equally during an inflationary spell, whereas financial assets - bonds, stocks - uniformly fall.
The Inflation Tipping Point (Part Four of Four)
By John Butler - dailyreckoning.com
The Fed, already deep into a dilemma largely of its own making, is about to find itself facing an even more unpalatable choice before long: Accommodate the surge in demand for real goods with a continuing easy money policy or, alternatively, slam on the brakes sufficiently to force an end to the incipient behavioral changes behind the growing stagflation, thereby running the risk of causing another acute round in the ongoing financial crisis.
So what is the Fed going to do? Take responsibility? Well that would be rather out of character given that the Fed so far has steadfastly denied any blame whatsoever for the credit (or asset) bubble that it created with a prolonged period of excessively easy monetary conditions in 2003-07. More likely, the Fed will simply hope that somehow inflation will rise moderately to a level which helps to reduce the real debt burden on the economy and then stabilize. But if an inflation tipping point is soon reached and consumer price inflation ratchets sharply higher this year, no doubt the Fed will deny that such inflation is in any way a monetary phenomenon, notwithstanding the analysis above and Milton Friedman's famous dictum to the contrary.
Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World Reserve Currency And SDRs "Could Constitute An Embryo Of Global Currency"
TheEconomicCollapseBlog.com
The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again. In a new report entitled "Enhancing International Monetary Stability - A Role for the SDR", the IMF details the "problems" with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights). But the IMF certainly does not view SDRs as the "final solution" to global currency problems. Rather, the IMF considers SDRs to be a transitional phase between what we have now and a new world currency. In this newly published report, the IMF makes this point very clearly: "In the even longer run, if there were political willingness to do so, these securities could constitute an embryo of global currency." Yes, you read that correctly. The SDR is supposed to be "an embryo" from which a global currency will one day develop. So what about the U.S. dollar and other national currencies? Well, they would just end up fading away.
The March Towards Capital Controls is Quickening
Simon Black - SilverBearCafe.com
In the late 1920s, the economy of the Weimar Republic was beset by numerous fiscal troubles. The global depression spread quickly to Germany, undermining the government's ability to make its reparation payments from the Great War.
Fearing a return to hyperinflation, many Germans who had spent the last decade building up a small fortune during the Weimar Republic's own 'Roaring 20s' decided to pack up and leave; they remembered the days when banknotes were used as wallpaper and had no desire to repeat the experience.
In 1931, Chancellor Heinrich Bruning imposed a 'flight tax', which levied a 25% tax on the value of all property and capital for Germans leaving the country.
Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks
Graham Summers - SilverBearCafe.com
We've been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I'd rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks.
I've written this analysis before. But given the enormity of what it entails, it's worth repeating. The following paragraphs are the REAL reason Bernanke does what he does no matter what any other media outlet, book, investment expert, or guru tell you.
Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only. That reason is: DERIVATIVES.
Bernanke Bubblenomics Succeeds in Inflating Another Bubble, Get Those Wheelbarrows Ready
By: Mike Whitney - MarketOracle.co.uk
The game is on. Two years of zero rates, limitless guarantees, and a $2 trillion drip-feed from the Fed, has lifted Wall Street from the canvas and put the speculators back in the thick-of-things. It's a miracle. Who would have thought that Bernanke could engineer another bubble this fast. But he has. Mergers and Acquisitions (M&A) are increasing, LBO's (Leveraged buyouts) are on the rise, revolving credit ("plastic") is expanding, and investors are scarfing up low-yield junk bonds wherever they can find them.
Still can't believe it? Then, take a look at this from Businessweek:
"Home loans that inflated the U.S. housing bubble...are fueling the fastest gains in the mortgage-bond market... Prices for senior bonds tied to option adjustable-rate mortgages, called "toxic" by a government commission, typically jumped 6 cents to 64 cents on the dollar in the past month, according to Barclays Capital.
The Alternative Market Project: A Sneak Preview
Brandon Smith (aka Giordano Bruno) Neithercorp Press - 2/10/2011
If you want something done right, you might well have to do it yourself. We've heard the old adage before, but rarely do we ever seem to apply it to our economic environment. Instead, we have seen fit to allow "smarter" men to take the reigns, and take control, of our financial well being, all on misplaced faith in the supposed good intentions of government and corporate bodies. This cultural attitude of non-involvement in the economic decision making process has cost millions of Americans their jobs and now threatens the stability of our currency, our nation, not to mention our very future. Many of us have become entirely dependent on only a handful of men for our own livelihoods. It is time to take greater stock in ourselves, our ingenuity, and our ability to create and adapt. It is time to take responsibility for our own commerce, and breathe life back into local communities once again. It is time for an alternative...
Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?
Michael Snyder - SilverBearCafe.com
Did you see Ben Bernanke's testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true. Bernanke insists that the economy is getting much better, that quantitative easing will lower long-term interest rates, that all of this money printing by the Federal Reserve is not causing inflation and that the Fed knows exactly what needs to be done to dramatically reduce unemployment inside the United States. So is anyone out there still actually buying what Bernanke is selling? Sure, a handful of people in the mainstream media still have complete faith in Bernanke. But for the rest of us, it is becoming increasingly clear that there is something really "off" about Bernanke. So just what is going on with him? Is he lying to all of us on purpose? Could he be insane? Is he just completely and totally incompetent?
Goldman Sachs Former Chief Whitehead Says NYSE Deal 'An Insult'
By Max Abelson
Feb. 11 (Bloomberg) -- John C. Whitehead isn't celebrating the 219-year-old New York Stock Exchange's plan to be acquired by Germany's 18-year-old Deutsche Boerse AG.
"I think it's a terrible idea and I hope it can be stopped," Whitehead, the 88-year-old former co-chairman of Goldman Sachs Group Inc., said in an interview yesterday. "It would be an insult to New York City, and New York State, and indeed to all America."
The erstwhile U.S. deputy secretary of state, NYSE director and Lower Manhattan Development Corp. chairman said his experience gives him the credibility to speak out against the potential takeover.
Congress warned over states' bankruptcies
Stephen Foley -SilverBearCafe.com
US lawmakers were warned yesterday that allowing states to declare bankruptcy would upend the $2.8 trillion (£1.7 trillion) municipal bond market, making it much harder and more expensive to fund local government, and potentially destablising the economic recovery.
A House of Representatives committee was examining the extent of the financial distress in state and local governments, which has become a major topic of concern on Wall Street and among individual investors, and examining ways to prevent the need for a federal bailout of any of the lower rungs of government.
"The perfect storm is brewing; already state and municipal governments are coming to Washington, hat-in-hand, expecting a federal bailout like everybody else," Republican Congressman Patrick McHenry said. "But the era of the bailout is over."
Hill brawl awaits Obama's '12 budget
Lawmakers bent on cutting costs
By Seth McLaughlin - The Washington Times
When President Obama rolls out his 2012 budget Monday, it will sound the starting gun on a three-month sprint that will determine just how serious Washington is about translating its cost-cutting rhetoric into serious action to reduce staggering deficits.
Mr. Obama's budget marks the beginning of the 2012 budget fight, but it also sets the tone for how Congress tackles the debt ceiling, likely in April. With the federal government still operating on stopgap spending, Congress and the White House still have to hash out the 2011 spending bills that are more than four months overdue.
At stake is nothing less than the fiscal health of the country.
How the Tea Party is brewing up trouble for the world's currencies When, decades in the future, historians write the definitive account of the great economic crisis of the early 21st century, the chances are they won't waste too much ink on the G20 summit that just concluded in Seoul. Or will they?
By Edmund Conway - Telegraph.co.uk
.... We are in the midst of a shift in international monetary structures, such as happened in Bretton Woods in the 1940s, or in the move to floating exchange rates in the 1970s. The probability is that at least some of the characteristics of globalisation we currently take for granted - free movement of capital, the push to cut trade barriers, independent central banks and free-floating currencies - will not survive many years longer.
Epochal shifts like this happen only once every half-century or so, and usually imply a period of economic volatility, international tension and a general sense of unease over the future. Moreover, there are no silver bullets and there is rarely a clear road-map. Bretton Woods was the exception rather than the rule.
Barack Obama to unveil $1.1tn cuts in US budget over next decade President announces pay freeze for government workers and slashes projects designed to help the poor and the environment
By Dominic Rushe - guardian.co.uk,
Barack Obama is poised to announce $1.1tn (£687bn) in budget cuts tomorrow in a 10-year deficit reduction plan to avert a budget crisis and silence the conservative opposition.
In his third annual budget, Obama is expected to introduce a five-year freeze on discretionary spending and a pay freeze for government workers. Severe cuts are expected to many programmes that have previously had the president's support. Home energy assistance for low-income families would be halved, and an initiative to restore the environmental health of the Great Lakes would be reduced by a quarter. The community development block grant, which goes to state governments to develop low-income areas, and funding for the Forest Service, stewards of the forests, are also likely to be cut.
21 Signs That The Once Great U.S. Economy Is Being Gutted, Neutered, Defanged, Declawed And Deindustrialized
TheEconomicCollapseBlog.com
Once upon a time, the United States was the greatest industrial powerhouse that the world has ever seen. Our immense economic machinery was the envy of the rest of the globe and it provided the foundation for the largest and most vibrant middle class in the history of the world. But now the once great U.S. economic machine is being dismantled piece by piece. The U.S. economy is being gutted, neutered, defanged, declawed and deindustrialized and very few of our leaders even seem to care. It was the United States that once showed the rest of the world how to mass produce televisions and automobiles and airplanes and computers, but now our industrial base is being ripped to shreds. Tens of thousands of our factories and millions of our jobs have been shipped overseas. Many of our proudest manufacturing cities have been transformed into "post-industrial" hellholes that nobody wants to live in anymore.
Why Fannie and Freddie are sticking around
By James Pethokoukis - Reuters.com
The Obama White House finally has a kinda-sorta housing plan. But here is the thing: Fannie Mae and Freddie Mac, seized by the U.S. government back in 2008, don't possess the political clout they used to. But the two mortgage finance giants still have a network with shared interests. That lingering influence is a big reason why they - or possibly similar-looking replacements - will be around for a while longer.
The White House and congressional Republicans agree that housing finance, a big contributor to the recent financial crisis, needs a sweeping overhaul. That includes dramatically reducing or eliminating the role of Fannie and Freddie, which have soaked up more than $150 billion in taxpayer aid since the federal takeover. But it looks like President Barack Obama's team can't decide on a single plan and will instead offer a menu of options for reducing government-s role in housing. And while the GOP is adamant it wants to wind down Fannie and Freddie as soon as possible, it doesn't seem ready to start quite yet.
Chapter 11 for Borders, New Chapter for Books
By MIKE SPECTOR And JEFFREY A. TRACHTENBERG - WSJ.com
Borders Group Inc. is in the final stages of preparing a bankruptcy filing, clinching a long fall for a company with humble beginnings that helped change the way Americans buy books but failed to keep pace with the digital transformation rocking every corner of the media landscape.
The troubled Ann Arbor, Mich., bookseller could file for Chapter 11 bankruptcy-protection as soon as Monday or Tuesday, paving the way for hundreds of store closings and thousands of job losses, said people familiar with the matter.
How Capitalists Help Build Socialism
Mises Daily: by Frank Chodorov
In the century since Marx propounded the theories on which he based the inevitability of the coming of socialism, every one of these theories has been proven fallacious, until now when even the avowed socialists avoid mentioning them. And yet, socialism is with us. It has come not by way of Marx but by methods of which he took no note.
Here it might be well to attempt a definition of socialism. The task would be hopeless if it involved the inclusion of every doctrine extant among the multitudinous sects or individuals who lay claim to the name. At one time there was agreement among all of them as to the means for bringing about the "good society" of which they spoke (but not on the ingredients of that "good society"); it was simply public ownership and operation of the means of production and exchange. In other words, the nationalization of industry.
Neo-Nazis fill German village
Far-right extremists believed to be behind 40 attacks in region
By David Rising - Associated Press
JAMEL, Germany | This is a town taken over by neo-Nazis. Wooden signposts by the main road point to Vienna, Paris and Braunau am Inn - the Austrian birthplace of Adolf Hitler. From home, a far-right leader runs his demolition company, its logo featuring a man smashing a Star of David with a sledgehammer.
Every few months, townsfolk host outdoor parties where guests sing "Hitler is my Fuehrer" and chant "Heil" around a massive bonfire.
Jamel is the most extreme manifestation of a chilling phenomenon in the former communist East Germany: a creeping encroachment of neo-Nazism that makes Mecklenburg-Western Pomerania one of only two states where Germany's biggest far-right party, the National Democratic Party (NPD), sits in parliament.
Japan economy shrinks in Oct-Dec quarter Data for 2010 officially shows China's economy bigger
By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) - The Japanese economy contracted in the latest quarter as exports and domestic demand slumped, government data showed Monday, and data for 2010 officially showed China's economy has surpassed that of its Asian neighbor.
As expected, the yearly data showed that Japan has fallen in ranking to become the third-largest national economy in the world, ceding its No. 2 position to China, with the U.S. still in the lead. China's economy had already surpassed Japan's on a quarterly basis.
JapanÕs nominal gross domestic product for 2010 was 479.223 trillion yen ($5.474 trillion), below the $5.879 trillion that China reported last month. But Japan's real GDP expanded 3.9% for the year, despite the fourth-quarter contraction.
U.S.-Pakistan Row Intensifies Washington Scraps Talks, Citing 'Political Changes' Amid American's Detention
By ZAHID HUSSAIN - WSJ.com
ISLAMABAD, Pakistan - The U.S. canceled talks in Washington involving Pakistan due to an escalating diplomatic row over the detention last month of an American employed by the U.S. government who shot dead two armed men.
A U.S. State Department statement Sunday said the high-level meeting involving Pakistan, Afghanistan and the U.S. was called off "in light of the political changes in Pakistan." Pakistan's government Friday announced cabinet changes that removed Shah Mahmood Qureshi, the country's former foreign minister, from his post.
Hosni Mubarak resigns: Mahmoud Ahmadinejad hails 'a new Middle East'
Iran's president Mahmoud Ahmadinejad on Friday claimed the uprising in Egypt and removal of Hosni Mubarak heralded a new Middle East without the "satanic" influence of the West and that will doom Israel.
By Barney Henderson - Telegraph.co.uk
Despite suppressing its own opposition movement, Mr Ahmadinejad drew parallels between the protests in Egypt and the 1979 Islamic Revolution in Iran.
"In spite of all the (West's) complicated and satanic designs ... a new Middle East is emerging without the Zionist regime and US interference, a place where the arrogant powers will have no place," he told a rally in Tehran's Azadi Square to make the anniversary of the Revolution.
Tens of thousands of Iranians chanted support for Egypt's protesters and burned effigies of Hosni Mubarak.
Iran's Feb. 11 surprise Ahmadinejad has ominously promised that Iran will deliver a blow against the West on 2/11. Should we be worried?
TheWeek.com
Iranian president Mahmoud Amadinejad has issued a mysterious threat against the West, promising to strike a "telling blow" on February 11, the 31st anniversary of the country's Islamic Revolution. Iran's supreme leader and commander-in-chief Ayatollah Ali Khamenei reiterated the threat on Monday, declaring that Iran will "punch" Western powers on that day "in a way that will leave them stunned." The murky declarations come amid reports that Iranian dissidents are planning to protest during Thursday's official anniversary celebrations. Are Iran's leaders just posturing, or do they have something dangerous planned.
Ahmadinejad: Egyptian protests herald new Mideast
By ALI AKBAR DAREINI
TEHRAN, Iran (AP) - Iran's president said Friday that Egypt's popular uprising shows a new Islamic Middle East is emerging, one that Mahmoud Ahmadinejad claims will have no signs of Israel and U.S. "interference."
The Iranian leader spoke as the country marked the 32nd anniversary of its 1979 Islamic Revolution that toppled the pro-U.S. shah Mohammad Reza Pahlavi and brought hardline clerics to power.
Ahmadinejad's remarks came hours after Egyptian President Hosni Mubarak announced he is transferring authority to his deputy but refused to step down, angering hundreds of thousands of Egyptians who have been demanding he relinquish his three-decade grip on power
Hosni Mubarak resigns, hands powers to the army
DEBKAfile.com
Vice President Omar Suleiman announced Friday, Feb. 11, that Hosni Mubarak had decided to step down as president of Egypt and hand his powers to the Higher Council of the Armed Forcesá The announcement over state TV was greeted with ecstatic cheers by the protesters assembled in Cairo's Tahrir Square and other city centers on the 18th day of their demonstrations for his ouster.
By a single sentence Suleiman marked the end of Mubarak's 32-year rule of Egypt. Earlier, he was flown by a military craft out of Cairo to his Sinai residence at Sharm el-Sheikh.
DEBKAfile reports that in fact a military coup d'etatÊtook place and the high army command is in charge of administering the nation. Any civilian stepping into the presidential office would have to cooperate with the army.
Democracy protests bring down Egypt's Mubarak
By PAUL SCHEMM and MAGGIE MICHAEL, Associated Press
CAIRO - Egypt exploded with joy, tears, and relief after pro-democracy protesters brought down President Hosni Mubarak with a momentous march on his palaces and state TV. Mubarak, who until the end seemed unable to grasp the depth of resentment over his three decades of authoritarian rule, finally resigned Friday and handed power to the military.
"The people ousted the regime," rang out chants from crowds of hundreds of thousands massed in Cairo's central Tahrir Square and outside Mubarak's main palace several miles away in a northern district of the capital.
Transition Is a Test for Suleiman
By CHARLES LEVINSON, KEITH JOHNSON and MARGARET COKER
Egyptian Vice President Omar Suleiman, a man intimately tied to the 30-year rule of Hosni Mubarak, appeared to be charged Thursday night with overseeing the transition from the very same regime.
How Mr. Suleiman manages the crisis now, and whether he has the credibility to lead negotiations, will go a long way to determining how Egypt emerges from its turmoil. The plan was undermined from the outset, however, by the widespread confusion that remained Thursday night about the extent of Mr. Mubarak's transfer of power.
Hosni Mubarak resigns as president Egyptian president stands down and hands over power to the Supreme Council for the Armed Forces.
ALJazeera.net
Hosni Mubarak, the Egyptian president, has resigned from his post, handing over power to the armed forces.
Omar Suleiman, the vice-president, announced in a televised address that the president was "waiving" his office, and had handed over authority to the Supreme Council of the armed forces.
Suleiman's short statement was received with a roar of approval and by celebratory chanting and flag-waving from a crowd of hundreds of thousands in Cairo's Tahrir Square, as well by pro-democracy campaigners who attended protests across the country on Friday.
The crowd in Tahrir chanted "We have brought down the regime",Ê while many were seen crying, cheering and embracing one another.
Mohamed ElBaradei, an opposition leader, hailed the moment as being the "greatest day of my life", in comments to the Associated Press news agency.
"The country has been liberated after decades of repression,'' he said.
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Fury in Egypt as Mubarak refuses to leave Massive protest expected after president hands over some powers to vice-president Suleiman - but remains in office
By Chris McGreal in Cairo - The Guardian
President Hosni Mubarak dashed the hopes of hundreds of thousands of Egyptians waiting for what they thought would be his resignation speech last night by defiantly announcing that he would not bow to domestic or foreign pressure to quit.
In a televised address that has set the stage for further confrontation on the streets Ð as well as heightened tensions with the US Ð Mubarak said he would hand powers to his deputy, Omar Suleiman, but would stay on as president, with his regime controlling the transition to free elections.
Although he appeared to have surrendered much of his power, Mubarak said he will stay in office until an orderly transition to an elected government, planned for September. He repeated a pledge not to seek re-election and said there was no going back on a commitment to long-term political reform, after the two weeks of protests demanding his resignation.
Mubarak transfers power to vice president
By Maggie Michael - Associated Press - WashingtonTimes.com
CAIRO - Egyptian President HosniMubarak announced he is handing his powers over to his vice president, Omar Suleiman, and ordered constitutional amendments Thursday. But the move means he retains his title of president and ensures regime control over the reform process, falling short of protester demands.
Protesters in Cairo's central Tahrir Square, hoping he would announce his resignation outright, reacted in fury and disbelief.
Many watched in stunned silence to his speech, slapping their hands to their foreheads in anger and shock, some crying or waving their shoes in the air in a sign of contempt. After he finished, they resumed their chants of "Leave! Leave! Leave!" The crowd in the square had swelled to several hundred thousand in anticipation of the nighttime address.
Hope and euphoria turn to anger and defiance
By Andrew England and Roula Khalaf in Cairo - FT.com
A hush went around Tahrir Square when Hosni Mubarak appeared on a large screen to deliver another round of concessions to Egypt's young revolutionaries, this time effectively ending his political career by handing over his powers to his vice president.
Many held cameras and phones above the crowds to capture what they anticipated to be a historic moment. But as the speech dragged on, more and more disgruntled murmurs rose from the masses packed tightly together.
Some began holding their shoes towards the screen in a statement of contempt; others turned their thumbs towards the ground as Mr Mubarak went on. Chants of "Go,go," suddenly erupted as the speech neared its end, drowning out the embattled president's words.
Mubarak spurns opposition demands to leave power immediately
By Craig Whitlock - Washington Post
CAIRO - Egyptian President Hosni Mubarak ceded some authority to his vice president Thursday but he refused to quit, insisting he would stay in office to oversee a drawn-out transfer of power. His defiance stunned and angered hundreds of thousands of protesters in the capital who responded with chants of "revolution, revolution."
Enormous crowds, which had gathered in anticipation that Mubarak would announce his resignation in a televised address, expressed their disappointment and fury as the message sunk in that the president had no intention of leaving. Some masses moved tentatively toward the heavily guarded state television tower, while others vowed to march on Mubarak's presidential palace.
"Oh Mubarak, be patient! The people will dig your grave," shouted protesters in Tahrir Square late into the night.
NEWS ON EGYPT-EMBASSIES EVACUATED-COUP THREATENED
MUBARAK PUBLICLY DENIES RESIGNATION
GUNFIRE ERUPTS AROUND PALACE, PARAMILITARY FORCES ENGAGED
By Gordon Duff Senior Editor - VeteranToday.com
Latest reports from Egypt in light of the deteriorating security situation after the shocking revelations from President Mubarak:
Coup against Mubarak and Suleiman eminent
US Embassy in Cairo to be targeted
El Baradei calls out to army for support save Egypt
Crowds are moving on the Presidential Palace. Gunfire has erupted. Among the crowds are members of organized paramilitary units. Something is going on, something more than a public response.
President Obama has expressed shock to his close advisors, in the belief that Mubaraks attempts to retain power will result in large scale violence.
Embassies, particularly those of Egypt's neighbors, are evacuating.
The power struggle between Vice President Suleiman and Defense Minister Tantawi, with Suleiman backed by Israel, is likely to turn bloody.
Egyptian Intifada: The ultimate conspiracy theory and the uses of fear
by Adam Morrow - VeteransToday.com
CAIRO, Feb 11, 2011 (Veterans Today) - If you thought the idea that 19 Arabs with box-cutters could bring down the World Trade Center (both towers!) was a stretch, you'll love this one: In an effort to turn the Egyptian public against the ongoing uprising, the embattled Mubarak regime has promoted the ultimate conspiracy theory, involving elements from Hamas, Hezbollah, Iran, Qatar, the US, and - wait for it - Israel.
"The news that was broadcast on Egyptian state media in the first days of the uprising wasn't news, it was madness," Gamal Fahmi, political analyst and managing editor of opposition weekly Al-Arabi Al-Nassiri, told Veterans Today. "Madness that reflected the regimeÕs desperation."
Obama questions transition in Egypt
By Mimi Hall and Kevin Johnson, USA TODAY
WASHINGTON - The Obama administration scrambled to respond Thursday to an increasingly uncertain situation in Egypt after President Hosni Mubarak said he would transfer power to his vice president but would not relinquish his title.
"The Egyptian people have been told that there was a transition of authority, but it is not yet clear that this transition is immediate, meaningful or sufficient," President Obama said. "Too many Egyptians remain unconvinced that the government is serious about a genuine transition to democracy, and it is the responsibility of the government to speak clearly to the Egyptian people and the world."
Obama's statement came at the close of one of the most tumultuous and unpredictable days since protests began last month.
Beyond Tahrir: Two faces of Egypt On the one hand there is vice-president Omar Suleiman, and on the other young activist Wael Ghonim
Editorial - The Guardian
You only have to hear and see the two men for a few minutes to understand what is at stake in Egypt. On the one hand there is vice-president Omar Suleiman, with his clipped moustache and beautifully cut suits. Clearly intelligent, but also inherently slippery, his words are intended to be reassuring, but every now and then there is a hint of menace. He may well be less wily and less in control than he likes to appear, as our story today on the state of negotiations suggests, but this is still the face of a survivor, a fixer, and a believer in the authority over others of old foxes like himself which his own body language so obviously conveys.
Look at the other face, that of Wael Ghonim, the young activist who has some claim to have triggered the Egyptian uprising with his Facebook postings. It is almost bashful, even shy. There is no guile there. His insistence on the diverse nature of the protest movement and his refusal to grab at a leadership role show a pleasing modesty. His honesty in admitting that his own hopes had not initially included the removal of President Mubarak, his care to underline the fact that he was not ill-treated while in detention, and the emotion he displayed when shown pictures of some of those who died in Tahrir Square - all these speak of an open heart and an open mind.
Mubarak Deepens Crisis Egypt in Chaos as Leader Refuses to Go; He Has Ceded Power, Ambassador Says
By MARGARET COKER, CHARLES LEVINSON and TAMER EL-GHOBASHY - WSJ.com
CAIRO - Egyptian President Hosni Mubarak handed power to his vice president but retained his title, a half-measure that confused observers, angered opposition leaders and provoked an uproar from hundreds of thousands of protesters massed in the center of the country's capital.
The move sets up another conflict with the opposition movement, which has called on supporters to gather for a huge protest Friday. Expectations that the president would resign had built through the day, and the immediate reaction to the speech was anger, with protesters chanting "Leave, leave."
An Army officer using a loudspeaker tried to calm protesters. "Let's save our energy for tomorrow," a man screamed to the crowd. "Go home and sleep, because tomorrow will be the day of judgment."
The defiant tone taken by Mr. Mubarak - and widespread confusion about the meaning of his speech - left the Obama administration scrambling to devise its next steps in a crisis that appears out of its control.
ElBaradei warns 'Egypt will explode'
By Molly Hennessy-Fiske - LATimes.com
Mohamed ElBaradei, who has emerged as a leader of the opposition movement against President Hosni Mubarak, posted comments online within the last hour warning that the country has become volatile.
"Egypt will explode," ElBaradei, a Nobel Peace Prize winner and retired diplomat, posted on Twitter. "Army must save the country now."
In statements posted earlier in the day, ElBaradei vowed continued protests and complained of violence by Mubarak's government.
NEW ATTACKS IN GAZA, CENSORED FROM WESTERN PRESS
SECRET ISRAELI/US BOMBING PROGRAM EXPOSED
By Ken O'Keefe and Gordon Duff for Veterans Today "We're in the building here, what do we have here? Medical supplies Jesus Christ." Ken O'Keefe
February 9, 2011 (VT) Gaza: Last night, Israeli planes bombed a medical supply center in Gaza. The bombing attack lasted only 20 minutes or so, short when compared to the "London blitz" during World War II but similar in other way. Israeli planes were still overhead while film crews were on the scene.
Israel has yet to release a statement taking credit for the attack.
The systematic destruction of necessary support services, health care, water, sewage, electric, schools continue. Were our film team not to have been on the scene, media would likely have reported this as a poison gas plant or a rocket factory.
Tehran clamps down on protests Opposition leader detained
By Ali Akbar Dareini - Associated Press - WashingtonTimes.com
TEHRAN | Authorities placed one of Iran's opposition leaders under house arrest Thursday, posting security officers at his door and detaining one of his aides, in response to his calls for a rally in support of anti-government demonstrations in Egypt, his website said.
Iran's hard-line rulers - who also have tried to capitalize on the uprising against their regional rivals in Egypt's U.S.-allied regime - are seeking to deprive their own opponents at home of any chance to reinvigorate a movement swept from the streets in a heavy military crackdown.
What it means when protesters wave shoes
By Molly Hennessy-Fiske - LATimes.com
When protesters in Cairo's Tahrir Square heard President Hosni Mubarak's natioanl address, in which he refused to step down, many took off their shoes and waved them in the air.
"The message of the shoes is clear," British blogger k2p wrote.
But was it?
The moment was captured in photographs, including one on k2p's blog and another snapped by a prostester and uploaded to Twitpic, titled "The anticlimax."
Everything You Need To Know About The $2 Billion That Americans Give To Egypt Each Year But Were Afraid to Ask How much does the U.S. spend on Egypt?
VeteransToday.com
The protests in Egypt have prompted renewed questions about the U.S.'s aid to the country - an issue that the U.S. government has also pledged to reconsider. We've taken a step back and tried to answer some basic questions, such as how as much the U.S. has given, who has benefitted, and who gets to decide how its all spent.
Egypt gets the most U.S. foreign aid of any country except for Israel. (This doesn't includeÊthe money spent on the Iraq and Afghanistan wars.) The amount varies each year and there are many different funding streams, but U.S. foreign assistance to Egypt has averaged just over $2 billion every year since 1979, when Egypt struck a peace treaty with Israel following the Camp David Peace Accords, according to a Congressional Research Service report from 2009.
The Secret Rally That Sparked an Uprising Cairo Protest Organizers Describe Ruses Used to Gain Foothold Against Police; the Candy-Store Meet That Wasn't on Facebook
By CHARLES LEVINSON And MARGARET COKER - WSJ.com
CAIRO - The Egyptian opposition's takeover of the area around the parliament this week began with a trick - the latest example of how, for more than two weeks, young activists have outwitted Egypt's feared security forces to spur an uprising many here had long thought impossible.
On Tuesday, young opposition organizers called for a march on the state television building a few blocks north of their encampment in central Tahrir Square. Then, while the army deployed to that sensitive communications hub, protesters expanded southward into the lightly defended area around Egypt's parliament building.
U.S. Sanctions Lebanese Bank
By EVAN PEREZ - WSJ.com
WASHINGTON - U.S. authorities ordered sanctions against a Lebanese bank that the U.S. says helped drug traffickers launder money and finance the Lebanese group Hezbollah.
The U.S. Treasury Department on Thursday designated Lebanese Canadian Bank SAL as a "primary money laundering concern" under Patriot Act provisions aimed at curbing terrorism finance.
Treasury and U.S. Drug Enforcement Administration officials alleged that hundreds of millions of dollars in drug proceeds were laundered through accounts at the lender.
In a statement, the bank denied "knowledge of any involvement in any manner whatsoever in illicit transactions or wrongdoing." The bank said it was "committed to fully cooperate and coordinate with the relevant regulatory authorities in an effort to demonstrate the integrity and transparency of its operations."
G-20 Set to Agree on Need to Oversee Capital Flows
By NATHALIE BOSCHAT, SEBASTIAN MOFFETT And IAN TALLEY - WSJ.com
The world's economic leaders are expected to agree next week on the need for a new system to oversee international capital flows - but a decision on what the guidelines should be and how to enforce them could prove a thornier issue.
Finance officials from the Group of 20 leading economies and representatives of international financial institutions are due to gather Feb. 18 and 19 for the first high-level meeting under France's yearlong G-20 presidency. Against the backdrop of a wobbly global economy, officials plan to tackle the euro-zone debt crisis, currency policy, financial regulation and a raft of other economic problems ailing rich and developing countries alike. They also may discuss how to better represent non-G-20 countries at future meetings.
Prominent Chinese Economist Advises Country To Sell Its $500 Billion In GSE Holdings Before QE2 Ends
by Tyler Durden - ZeroHedge.com
Add one more pill to the daily Oxycodone consumption by the Chair Central Planner. In what is about to become the latest headache for Bernanke, popular Chinese economist Lu Zhengwei, a senior economist at China's Industrial Bank Co., has advised that China should promptly sell its GSE holdings on concerns that continued "blank check" writing by Congress to the GSEs will be "almost impossible" as well as fears that as soon as QE2 ends, the entire US bond complex will see a major sell off. In other words welcome to the world of game theory defection: he who sells first, loses the least.
From Dow Jones:
A popular Chinese economist on Thursday said China should be aware of risks in its holdings of debt issued by U.S. government-controlled mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC), and suggested that China sell the securities soon.
The report by Lu Zhengwei, a senior economist at China's Industrial Bank Co., doesn't represent the views of China's leadership, but it does highlight persistent concerns about the security of Fannie Mae and Freddie Mac securities among Chinese civilians and some influential thinkers.
Inflation Worries Spread China Raises Rates Amid Hit to Wheat Crop;
Treasury Yields at 9-Month High
By BOB DAVIS And AARON BACK - WSJ.com
Inflation jitters spread through emerging markets on Tuesday, prompting China's central bank to raise interest rates for the third time in four months amid worries that a drought threatening the country's wheat crop will put further pressure on global food prices.
With fireworks still echoing from China's Lunar New Year holiday, its central bank said it is raising rates by one-quarter percentage point. It was just the latest move by an emerging-market government - several of which are deploying a panoply of policies to battle inflation fueled by rising food and commodity prices and growth that is threatening to outstrip their productive capacity.
In Brazil, Latin America's largest economy, the government reported Tuesday that inflation is accelerating, leading markets to expect its central bank to increase its overnight rate, already at 11.25%.
IMF calls for dollar alternative
By Ben Rooney
NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
International Monetary Fund director Dominique Strauss-Kahn calls for new world currency Dominique Strauss-Kahn, managing director of the International Monetary Fund, has called for a new world currency that would challenge the dominance of the dollar and protect against future financial instability.
By Andrew Trotman - Telegraph.co.uk
"Global imbalances are back, with issues that worried us before the crisis - large and volatile capital flows, exchange rate pressures, rapidly growing excess reserves - on the front burner once again," Strauss-Kahn said. "Left unresolved, these problems could even sow the seeds of the next crisis."
"When we worry about the deficiencies of the international monetary system, we are mostly worrying about volatility," he added. There is "a sense that money sometimes flows around the globe in too-volatile a fashion and that countries need a more stable, more predictable external environment in order to prosper", he said.
Could IMF currency take pressure off the dollar?
Howard Schneider - WashingtonPost.com
At the IMF and in some economic policy circles, there is talk about whether the fund's peculiar currency, called could play a greater role in the world economy.
Bank of England Maintains Aid as Inflation Accelerates
By Jennifer Ryan
Feb. 10 (Bloomberg) -- The Bank of England kept up emergency stimulus as officials tolerated the prospect of inflation accelerating to a two-year high to nurture Britain's economic recovery.
The Monetary Policy Committee, led by Governor Mervyn King, left the benchmark interest rate at a record low of 0.5 percent, as forecast by all 62 economists in a Bloomberg News survey. They also left their bond program at 200 billion pounds ($321 billion), as predicted by all 38 economists in a separate poll.
The bank may hold fire until later this year, when it will have official data showing the extent of the economy's rebound from a fourth-quarter contraction. Former policy makers DeAnne Julius and Kate Barker said the bank's stance has damaged its credibility and investors have increased bets that officials will raise the rate by June to stem inflation.
Trump: U.S. is a 'laughing stock'
By Annalyn Censky
NEW YORK (CNNMoney) -- Real estate mogul Donald Trump told hundreds of conservative activists Thursday, that if he was president, he would take in "hundreds of billions from countries that are screwing us."
The comment repeated past statements from "The Apprentice" star, who has said he wants to put a 25% tariff on all Chinese imports, to level trade imbalances in the global economy.
Speaking in D.C. at the annual Conservative Political Action Conference Thursday, Trump said the United States has become a "laughing stock" and "whipping post" for the rest of the world.
Among a laundry list of unrelated grievances, Trump was referring partially to a trade imbalance with China -- a topic he has previously ranted on publicly many times.
Debt-ceiling debate stirs up speculation Fiscal disaster or political theater?
By Patrice Hill - The Washington Times
The White House is warning of financial Armageddon this spring if Congress fails to raise the Treasury's $14.3 trillion debt ceiling, but many on Wall Street are skeptical that the looming spending clash will produce anything but riveting political theater.
Wall Street ratings agencies are not particularly worried that the U.S. Treasury will be forced into default, and some traders and investors say they are less concerned about the market impact of an extended partisan spending war than its potentially adverse effect on the economy and the nation's social fabric.
Fed Governor to resign Kevin Warsh to leave Federal Reserve board
By Neil Irwin - Washington Post
Kevin Warsh, a Federal Reserve governor and key lieutenant to Chairman Ben S. Bernanke during the financial crisis, is leaving the central bank at the end of March, giving President Obama a chance to continue reshaping the Fed.
Warsh's departure will leave the governing board of the powerful central bank almost entirely in the hands of Obama appointees. Obama will have named six of seven governors once the Senate confirms nominee Peter Diamond to a vacant slot and Warsh is replaced.
Warsh has been a skeptic of Bernanke's policy to try to boost the economy by buying hundreds of billions of dollars' worth of Treasury bonds, and Fed watchers think it likely that a new Obama appointee would be more supportive of the strategy. But given the sluggishness of the Senate confirmation process, analysts were not anticipating any sea change in Fed monetary policy.
Fed Governor Warsh will leave by late March
By Jeannine Aversa, AP Economics Writer - USAToday.com
WASHINGTON - Federal Reserve board member Kevin Warsh, who helped engineer the central bank's strategy during the financial crisis, says he will step down in March.
"Kevin rendered the Federal Reserve and the nation exemplary service during his time at the Board," Chairman Ben Bernanke said. "In particular, his intimate knowledge of financial markets and institutions proved invaluable during the recent crisis .... I deeply appreciate his insights and wise counsel and, most especially, his fortitude and friendship during the difficult days, nights, and weekends of the crisis."
Measures Needed To Avoid Greater Government Failure
Bob Chapman - TheInternationalForecaster.com
he administration and those who control it, the House and Senate, want us to believe that debt can be paid out of revenues now and forever. As inflation and perhaps hyperinflation set in we could easily see 10% interest rates. If that happened debt service would consume more than 40% of tax revenues. The projection that tax receipts over the next four years would grow by 1/3rd is ludicrous. That is more than 12% a year. Further increased taxation would send more companies and jobs offshore. The bottom line is that further will impede GDP growth and further stagnate the economy. Do not forget 70% of GDP is via consumption. There is no conceivable way with free trade, globalization, offshoring and outsourcing preceding a pace and with the manufacturing base in a shambles, that production and exports can pull the economy from its doldrums. How can revenues be increased under such circumstances? At the same time consumers are reducing debt and saving about 4% of income. This kind of environment is not inductive for consumption to rise from 70% of GDP to 74%, which is needed to bring about those revenues.
Treasury yields rise again after 30-year bond sale
By Tom Petruno - LATimes.com
After a one-day respite, Treasury bond yields rebounded Thursday as many investors remained wary of locking in current interest rates in an improving economy.
That won't be welcome news in the housing market, where the surge in Treasury yields since October has pushed average mortgage rates above 5% for the first time since April.
The Treasury, borrowing to finance the federal deficit, wrapped up this week's sale of $72 billion in bonds with an offering of $16 billion in 30-year securities Thursday, and investor demand was tepid.
The new 30-year bonds were sold at a yield of 4.75%. That was up from the 4.71% market yield on previously issued 30-year bonds (charted at left) on Wednesday, and close to the 10-month high of 4.77% reached Tuesday.
D Börse and NYSE in advanced talks
By Jeremy Grant and Philip Stafford in London, James Wilson in Frankfurt and Telis Demos in New York - FT.com
The world's bourses are being swept up in an accelerating wave of consolidation after Deutsche Börse revealed that it was in advanced talks with NYSE Euronext to create the world's largest exchanges operator by revenues and profits.
The proposed all-stock deal trumped the tie-up unveiled just hours earlier by the London Stock Exchange and Canada's TMX Group and would create the world's largest stock exchange by market value after Hong Kong Exchanges & Clearing. Deutsche Bšrse has a market value of $15.3bn while NYSE Euronext has a market value of $8.7bn.
Shares in Deutsche Börse, which were suspended on Wednesday, jumped 6.6 per cent on Thursday morning in Frankfurt to €61.20. NYSE shares closed up 14 per cent in New York on Wednesday at $38.10.
Germans in Talks to Buy Big Board NYSE, Deutsche Börse Near $25 Billion Tie-Up;
Deal Would Symbolize a Diminished Role for New York in Finance
By E.S. BROWNING, JACOB BUNGE and AARON LUCCHETTI - WSJ.com
After 219 years as the citadel of American capitalism, the New York Stock Exchange was near an agreement to be acquired by Deutsche Börse AG in a deal that would create the world's largest financial exchange.
If a deal is reached and regulators approve, the combined company would trade more stocks and futures than any rival in the world and more options than any U.S. exchange. The takeover would culminate a decade of tie-ups by exchanges around the world eager to find new sources of growth and catch up with smaller rivals that have been quicker to embrace new and lucrative kinds of trading.
NYSE considers merger with Deutsche Börse
By Matt Krantz, USA TODAY
Potentially ending U.S. control of a symbol of American capitalism, stock market operator NYSE Euronext (NYX) said Wednesday it is in "advanced discussions" about a combination with Germany's Deutsche Börse.
Details are scarce, but the deal currently being considered would put upwards of 60% of the ownership of the combined company in the hands of Deutsche Börse shareholders and the rest with NYSE shareholders. The NYSE declined to comment beyond the press release.
The Long and Frustrating Arm of Government Intervention
By Addison Wiggin - DailyReckoning.com
02/10/11 Baltimore, Maryland - "I want to encourage you to get in the game," the president told CEOs assembled at the US Chamber of Commerce across the street from the White House earlier this week. "Today, American companies have nearly $2 trillion sitting on their balance sheets.... My message is now is the time to invest in America."
Ah, if only it were so simple. We find ourselves in a pickle this morning. Somehow, we've veered off the track of providing you with incisive investment recommendations into the quagmire of presidential puffery we apologize.
In an effort to extricate ourselves, we've contrived an experiment with the hopes that we can be done with this debate and get back to opportunity ASAP.
China Begins to Worry About Fannie and Freddie Bonds
By Daniel Indiviglio - The Atlantic.com
In a House Financial Services committee hearing yesterday, some witnesses recommended that the U.S. force future losses from Fannie Mae and Freddie Mac's mortgage portfolio on bondholders, instead of taxpayers. One clear political problem with this proposal, however, is China. They hold about a half trillion dollars of this debt, so the Chinese might not be pleased if the U.S. forces them to take losses after assuring them that they would back up the mortgage companies' commitments. According to Dow Jones Newswires, senior China's Industrial Bank economist Lu Zhengwei has issued a warning about this political risk:
The Obama administration has committed unlimited amounts of aid to ensure that the firms meet their obligations to holders of their debt, as well as investors in asset-backed securities issued by the two companies. The commitment has cost U.S. taxpayers $134 billion so far.
Nonetheless, Lu said in his note that this commitment amounts to an "empty check" without the support of the U.S. Congress.
"However, looking at the current political situation in the U.S., for the U.S. congress to give a clear guarantee on this issue is almost impossible," Lu said.
Avoiding foreclosures: More states give help to homeowners
By Julie Schmit, USA TODAY
A $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds.
The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners.
Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments.
Next month, all of the states plus the District of Columbia are expected to have launched partial, full or pilot programs, says Treasury Department spokeswoman Andrea Risotto.
A 3.8% tax to fund healthcare? Yes and no An anonymous e-mail saying anyone selling a home after 2012 'will pay a 3.8% sales tax on it' is flawed. It's a capital-gains tax, not a sales tax. And up to $500,000 is exempt, so relatively few sellers will be affected.
By David Lazarus - LATimes.com
There's an e-mail going around warning that anyone who sells their home after 2012 "will pay a 3.8% sales tax on it" to help fund President Obama's healthcare reform law.
"Oh, you weren't aware this was in the Obamacare bill?" says the e-mail, which is being forwarded by many people but the origins of which remain a mystery. "Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either."
The e-mail was called to my attention by Chino resident Ken Burton, who wanted to know whether it was legit.
The answer is yes. And not exactly.
President Obama pitches $18 billion wireless broadband plan
By Cecilia Kang
MARQUETTE, Mich.- In this remote snow-swept college town rejuvenated in parts by Internet commerce, President Obama on Thursday outlined a plan to create similar economic stories through the expansion of super-fast wireless Internet connections.
Speaking at Northern Michigan University, Obama unveiled an ambitious blueprint to use $18 billion in federal funds to get 98 percent of the nation connected to the Internet on smartphones and tablet computers in five years.
To get there, the federal government will try to bring more radiowaves into the hands of wireless carriers to bolster the nation's networks and prevent a jam of Internet traffic. He said he hoped to auction airwaves currently in the hands of television stations and government agencies to raise about $27.8 billion.
Obama Wants to Use WiFi to Cut the U.S. Budget Deficit
By DANNY KING - DailyFinance.com
U.S. President Barack Obama on Thursday proposed that the government auction off its portion of the wireless spectrum to private companies. He says the move would boost access to high-speed Internet and cut the federal budget deficit at the same time.
Speaking at Northern Michigan University, Obama said in his prepared remarks that the government could gain as much as $28 billion from the sales.
The proposal calls for the government to invest $5 billion into a so-called "Universal Service Fund" designed to ensure public broadband access, $10.7 billion to set up a wireless network for public safety, $3 billion for research and development of wireless technologies and $9.6 billion to pay down the deficit.
Illegal Immigrants Move from America's Edges to the Center
By DANNY KING - DailyFinance.com
Unauthorized immigrants have long been relegated to the fringes of the U.S. labor market. But according to a recent Pew Research Center study, that contingent is moving toward the center -- at least in the geographic sense.
Illegal immigrants are moving away from New York, Florida and the Mountain West states like Arizona, Utah and Nevada, and moving toward states such as Texas, Oklahoma and Louisiana, the Pew Hispanic Center said in a report released last week.
Between 2007 and 2010, Florida's illegal immigrant population fell by 2.3% to 825,000, marking the largest percentage drop for a single state, while the number of undocumented immigrants in New York fell 2% to 625,000. Arizona, Utah and Nevada's collective illegal immigrant population fell 1.6% to 700,000.
Officials Warn of Domestic Terrorism Threat
By KEITH JOHNSON - WSJ.com
WASHINGTON - The proliferation of radicalized followers of al Qaeda within the U.S. has put the nation at a heightened risk of terrorist attacks, though on a smaller scale than the Sept. 11, 2001, strikes, security officials told Congress Wednesday.
"The terrorist threat facing our country has evolved significantly in the last 10 years - and continues to evolve," Homeland Security Secretary Janet Napolitano told a House committee exploring the threat from homegrown radicals.
The U.S. government's response to 9/11 limited the threat of a major terrorist attack launched by al Qaeda from overseas, Ms. Napolitano said. But lone-wolf extremists with little or no formal connection to al Qaeda have proliferated and are potentially plotting small-scale attacks in the U.S, officials said.
Janet Napolitano: US terror threat highest since 9/11
BBC.co.uk
The threat of terrorism against the US homeland is in some aspects "at its most heightened state" since the 9/11 attacks, US Homeland Security Secretary Janet Napolitano has said.
"The terrorist threat facing our country has evolved significantly," she told members of Congress.
The US faced new threats by groups already inside the country, inspired by al-Qaeda, she said.
Ms Napolitano warned that attacks could be carried out with little warning.
Al-Qaeda and Taliban-linked individuals have attempted a number of recent attacks against the US, including a Nigerian who tried to blow up an aircraft with explosives hidden in his underwear, and a man who plotted to attack the New York subway.
'No guarantee'
The Long Preparation of the Ikhwan, and Their Links to Iran, Are Now Paying Dividends in the Egyptian Turmoil; and Suez, Energy Links are Unquestionably Targeted
Global Intelligence Report - AllAmericangold.com
Analysis. By Yossef Bodansky, Senior Editor, GIS/Defense & Foreign Affairs. The path of the Ikhwan al-Muslimin (Muslim Brothers) to dominating the populist riots in Tahrir Square, Cairo, started in June 2007.
Toward the end of that month, the Ikhwani leadership contrasted two major events: the abuse which the Ikhwan suffered in the parliamentary elections in Egypt (two rounds on June 11 and 18, 2007, respectively) and the concurrent (June 10-14, 2007) clear victory of the HAMAS in its military coup in the Gaza Strip.
Earlier, in Spring 2007, the Ikhwan's supreme leadership decided to participate in the forthcoming parliamentary elections in order that the organization would not be seen as an anti-democratic obstructionist force. Moreover, pre-elections polls suggested that the Ikhwan enjoyed the support of about two-thirds of the would-be voters. Hence, cognizant that Egyptian Intelligence would never permit any other party to gain majority over Mubarak's NDP (National Democratic Party: Hizb al Dimuqratiyah al Wataniyah), the leadership nevertheless expected to secure a sizable presence in the new parliament. Elections, therefore, were considered an instrument of expediency for furthering the Brothers' quest for establishing an Islamic Republic in Egypt.
Could al Qaeda Hijack Egypt's Revolution?
By John Frisby - LuxLibertas.com Terrorists in Pakistan and mullahs in Tehran want to see chaos in Cairo. A splintered army and premature elections would help their cause. -- By KENNETH M. POLLACK - WSJ.com
It is the nature of revolutions to be entirely unpredictable. Most fail, and even those that succeed often follow paths that no one foresaw - not their targets, not their protagonists, not the partisans on any side. The Frenchmen who stormed the Bastille never foresaw the Terror. The Russians who stormed the Winter Palace never imagined Stalin's purges, the Gulag or the Great Famine. Most Iranians never meant to build a theocracy.
The uprising in Egypt is far from over, and neither is America's necessary role. We must work to guard against the worst outcomes, which may seem remote but are all too likely in the unpredictable maelstrom of revolution:
¥ The disintegration of the Egyptian army. Though hardly a paragon of democratic virtue, the army is the most important institution in Egypt, and it is vital to a peaceful transition to a moderate form of government. If the army fractures, Egypt will descend into chaos.
Mummies and Dummies: The Crisis In Egypt Is Not Over Yet Leave Or Stay, The Egyptian Crisis Will Only Get Deeper With No Quick Fix Likely
By Danny Schechter - OpEdNews.com
The African journalist Nathanial Manheru chose a quote from French icon Andre Malraux's Anti-Memoirs to understand current events in Egypt, "it is in Egypt that we are reminded that (man) invented the tomb."
The tomb may be the appropriate metaphor not only for wannabe President for forever Hosni Mubarak but also for the 30 plus year neo-colonial economic system that he has presided over. Not surprisingly Frank Wisner Jr, the former U.S. Ambassador and son of a CIA dirty trickster, wants the President to stick around "in the country's interest, of course.
Rallies Fan Out as Regime Closes Ranks
By CHARLES LEVINSON And SAM DAGHER
CAIRO - Egypt's opposition movement extended its protest to the street outside parliament and tapped allies in the labor unions to begin strikes of their own, pursuing a strategy of gradually ratcheting up pressure on a regime that is digging in behind President Hosni Mubarak.
Vice President Omar Suleiman warned protesters that the government wouldn't allow chaos and reiterated that Mr. Mubarak won't step down.
The move on the parliament building - a few blocks from central Cairo's Tahrir Square, the epicenter of protests - came as protest leaders work to maintain momentum ahead of another mass protest called for Friday, and keep up the pressure on the regime, which they say is using incremental concessions to stall for time and avoid real reform.
Labour unions boost Egypt protests Thousands of factory workers stay away from work as pro-democracy protesters continue to rally seeking Mubarak's ouster
AlJazeera.net
Egyptian labour unions have gone on a nationwide strike, adding momentum to pro-democracy demonstrations in Cairo and other cities.
Al Jazeera correspondents, reporting from Egypt, said around 20,000 factory workers stayed away from work on Wednesday.
Al Jazeera's Shirine Tadros, reporting from Cairo, said that some workers "didn't have a political demand".
"They were saying that they want better salaries, they want an end to the disparity in the pay, and they want the 15 per cent increase in pay that was promised to them by the state."
However, Tadros also said that some workers were calling for Hosni Mubarak, the Egyptian president, to step down.
The strike action came as public rallies calling for Mubarak to immediately hand over power entered their 16th day.
Egyptian talks near collapse as unions back protests
Government refuses transition plan as demonstrations are joined by strikes - and vice-president's coup ultimatum raises tensions
By Jack Shenker and Chris McGreal Cairo - guardian.co.uk
Talks between the Egyptian government and opposition have all but collapsed after the regime balked at surrendering power to a transitional administration in the hope that mass protests would die down.
Instead, the unrest is spreading as some of the largest demonstrations yet against President Hosni Mubarak were joined by labour strikes across the country, including on the Suez canal, in the city of Alexandria and by public transport workers in Cairo.
A prominent member of a key opposition group, the Council of Wise Men, said negotiations had "essentially come to an end". A western diplomat said Washington was alarmed by the lack of progress and the vice-president Omar Suleiman's warning of a coup if the opposition refused to accept the government's terms.
Saudis Ordered Obama "Not to Humiliate Mubarak"...
Saudi Arabia has threatened to prop up President Mubarak if the White House tries to force a swift change of regime in Egypt.
Hence the reason Obama hasn't been able to keep his story straight regarding Mubarak coming or going.
In a testy personal telephone call on January 29, King Abdullah told President Obama not to humiliate Mr Mubarak and warned that he would step in to bankroll Egypt if the US withdrew its aid programme, worth $1.5 billion annually.
America's closest ally in the Gulf made clear that the Egyptian President must be allowed to stay on to oversee the transition towards peaceful democracy and then leave with dignity.
"Mubarak and King Abdullah are not just allies, they are close friends, and the King is not about to see his friend cast aside and humiliated," a senior source in the Saudi capital told The Times.
Egypt's army 'involved in detentions and torture' Military accused by human rights campaigners of targeting hundreds of anti-government protesters
By Chris McGreal in Cairo - guardian.co.uk
The Egyptian military has secretly detained hundreds and possibly thousands of suspected government opponents since mass protests against President Hosni Mubarak began, and at least some of these detainees have been tortured, according to testimony gathered by the Guardian.
The military has claimed to be neutral, merely keeping anti-Mubarak protesters and loyalists apart. But human rights campaigners say this is clearly no longer the case, accusing the army of involvement in both disappearances and torture - abuses Egyptians have for years associated with the notorious state security intelligence (SSI) but not the army.
Cairo's Protests Reverberate in Tehran In Iran, both the regime and the opposition are working to co-opt Egypt's popular uprising
By Reza Aslan -The Atlantic.com
A wide range of observers, from Israeli Prime Minister Benjamin Netanyahu to Fox News' Glenn Beck, are warning that the downfall of the U.S.-backed dictator in Egypt could lead to another Iranian style theocracy in the Middle East. Others, such as New York Times columnist Roger Cohen, are drawing parallels between the Egyptian protests and Iran's Green Movement uprising of 2009. This debate is raging nowhere more fiercely than in Iran itself, where many Iranians -- on both the right and the left -- are clamoring to claim the Egyptian revolution for themselves.
IRAN: Government says only regime supporters can march for Egypt
By Meris Lutz in Beirut - LATimes.com
Iranian authorities and the opposition continue to battle over the legacy of Tahrir Square, with both sides claiming an affinity with the popular protest movements in Egypt and around the region.
The Iranian judiciary on Wednesday rejected a request by opposition leaders Mir Hossein Mousavi and Mehdi Karubi to hold a rally Monday in support of the antigovernment uprisings in Tunisia and Egypt, the Iranian Labor News Agency reported.
"If an individual truly shares the brave Egyptians and Tunisians motivation, then he will participate in the rally to be held on [Friday], the anniversary of the Islamic Revolution's victory, along with the government and the nation," said Iranian Judiciary Spokesman Gholamhoseyn Ezhe'i.
New allies for Israel? (see video) As the uprising in Egypt threatens to disrupt political alliances, we look at the implications for the peace process.
By Riz Khan - AlJazeera.net
As Israel watches Hosni Mubarak, the Egyptian president, cling to power, its leaders have begun to weigh the consequences of a reality without Egypt as an ally.
Concern is growing within the Israeli government that the 30-year long peace agreement between the two nations may be jeopardised with the formation of a new government.
Will Israel become even further isolated? Can Israel establish new allies in the region? How will this affect the peace process?
On Tuesday, we discuss these issues with Gil Hoffman, the chief political correspondent and analyst for The Jerusalem Post; Rami Khouri, the editor-at-large of Beirut's The Daily Star; and Meir Javedanfar, an Iranian-Israeli Middle East analyst.
Army Chief Ashkenazi: Prepare for all-out war In his final days on the job, Chief of Staff Ashkenazi warns about growing radicalization in region; given recent changes across Middle East, Israel must prepare for a battle in several theaters, he says -- Boaz Fyler - YNetNews.com
Given recent changes in the Middle East, Israel must prepare for a battle in several theaters, outgoing IDF Chief of Staff Gabi Ashkenazi said Monday at the Herzliya Conference.
"The connection between the different players requires us to contend with more than one theater," he said.
The radical camp in the Middle East is gaining strength, Ashkenazi warned, adding that "the moderate camp among the traditional Arab leadership is weakening." He also made note of what he characterized as the "fascinating phenomenon" whereby power is shifting to the people of the region thanks to online social networks.
Egypt protests: US steps up pressure on Cairo
By Jon Leyne - BBC.co.uk
The US administration has stepped up its criticism of Egypt's leadership after a 16th consecutive day of protests against the rule of President Hosni Mubarak.
Spokesman Robert Gibbs said they had yet to take the "necessary steps" the country's people needed to see.
Wednesday saw protests in the capital Cairo spread to the parliament.
There are reports of widespread industrial action, and of protests outside Cairo turning violent.
The Egyptian government has announced plans for a peaceful transition which see President Mubarak staying in office until elections in September, but opposition groups fear the government is stalling for time and will fail to enact meaningful changes.
Secret China war plan: trillions in U.S. debt Today an economic battle; later, combat
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch) - Yes, Americans love war. Yes, wars cost money. And pile on debt, new taxes. Still, we love war. Why else let the military budget burn 48% of your tax dollars? But why is it "off the table" when the GOP talks "deficit cuts"?
Why? We love war. We'd rather attack with a macho battle cry like "damn the torpedoes, full speed ahead!" than listen to a warning from historian Kevin Phillips: "Most great nations, at the peak of their economic power, become arrogant, wage great world wars at great cost, wasting vast resources, taking on huge debt, ultimately burning themselves out."
U.S. Debt, Fifty Ways to Leave Your Lender
By: Terry Coxon - GoldSeek.com
It was Otto von Bismarck who explained that "politics is the art of the possible." We can thank him for that much, but he didn't tell the whole story. I'll give you the rest of it. Politics is the art of the possible fictions you can get away with.
Politics is mostly dissembling, and the dissembling is mostly about dodging personal responsibility for the messes governments make. It works out that way because making messes is most of what governments do. So when we ponder how the U.S. government will go about defaulting on its debts, a good way to approach the question is to consider how a default might be presented.
JPMorgan Apologizes For Overcharging, Foreclosing on Soldiers House Panel Says Sorry Is Not Enough in Case of 4,500 Service Members Overcharged, 18 Foreclosed
BY ARLETTE SAENZ AND TOM SHINE - ABCNews.com
Members of the House Veterans' Affairs Committee tore into an apologetic JPMorgan Chase executive today after the bank admitted violating a law that guarantees protections to servicemembers serving in harm's way.
The giant financial institution failed to comply with the Servicemembers Civil Relief Act, which provides active duty soldiers, who purchased a home prior to the start of their active duty, a 6 percent cap on their mortgage interest rate and any other fees while they are on active duty and for a year after they are discharged.
Stephanie Mudick, head of Consumer Practices at JPMorgan Chase & Co., admitted Chase failed to comply with all aspects of the law and apologized to soldiers for violating the guarantees set forth by the Servicemembers Civil Relief Act.
Why Another Financial Crash is Certain
By: Mike Whitney - MarketOracle.co.uk
"If you have to pick a day for the Minsky Moment, it was August 9. And, actually, it didn't happen here in the United States. It happened in France, when Paribas Bank (BNP) said that it could not value the toxic mortgage assets in three of its off-balance sheet vehicles, and that, therefore, the liability holders, who thought they could get out at any time, were frozen. I remember the day like my son's birthday. And that happens every year. Because the unraveling started on that day. In fact, it was later that month that I actually coined the term "Shadow Banking System" at the Fed's annual symposium in Jackson Hole.
"It was only my second year there. And I was in awe, and mainly listened for most of the three days. At the end... I stood up and (paraphrasing) said, 'What's going on is really simple. We're having a run on the Shadow Banking System and the only question is how intensely it will self-feed as its assets and liabilities are put back onto the balance sheet of the conventional banking system.'"
Ron Paul: The Kudlow Report, 02/08/11
Bernanke Tries to Soothe GOP Fed Chief Says Inflation Won't Be Allowed to Take Hold but Shows No Sign of Tightening Policy
By JON HILSENRATH And LUCA DI LEO - WSJ.com
WASHINGTON - Federal Reserve Chairman Ben Bernanke sought to reassure wary Republicans that he won't allow inflation to take root, though he gave no indication that he is ready to reverse his easy-money policies.
"We do not now have a problem," Mr. Bernanke said amid repeated questions about inflation from lawmakers during an appearance before the House Budget Committee on Wednesday.
Ben Bernanke and The Confidence Men
By: Jeff Berwick - MARKETORACLE.CO.UK
Barack Obama, Ben Bernanke and other government officials always talk about the importance of "confidence" to the economy. But that is because they are confidence men (aka. conmen) playing a confidence game (congame).
Economies based on a free market financial system don't rely on confidence, but rather on mutual interests. A free market economy, with a free market money (gold, most likely), would not need confidence to run effectively. All it would need is for the government to bud out, and you would never see another recession for as long as you lived. Governments and their central banks create the recessions and depressions that they say they exist to circumvent. No one would ever lose confidence in the value of gold if his government waffled or waged war. The President of the US would never extort the President of China to devalue his gold because it is hurting the US economy to have Chinese gold worth so much.
Congress Questions Bernanke on Inflation
By SEWELL CHAN - NYTimes.com
WASHINGTON - The Federal Reserve chairman, Ben S. Bernanke, faced harsh questions Wednesday about the central bank's efforts to stimulate the economy, in his first hearing before the new Republican majority in the House.
"My concern is that the costs of the Fed's current monetary policy - the money creation and massive balance sheet expansion - will come to outweigh the perceived short-term benefits," Representative Paul D. Ryan of Wisconsin, the new chairman of the House Budget Committee, said in his opening remarks.
Mr. Ryan expressed alarm about "a sharp rise in a variety of key global commodity and basic material prices," as well as the recent rise in yields in longer-term Treasury securities.
NY Fed Official: Bond Buying Hasn't Compromised Treasury Market
By Michael S. Derby - WSJ.com
The Treasury market continues to function normally despite significantly sized bond buying by the Federal Reserve, a key central bank staffer said Wednesday.
"Our purchases do not appear to be causing significant strains on the liquidity or functioning of the Treasury market," Federal Reserve Bank of New York executive vice president Brian Sack said. The official heads the regional Fed's Markets Group and is responsible for implementing the monetary policy directives of the central bank.
Sack was addressing the impact on the government bond market of the Fed's program to buy $600 billion in longer-dated Treasurys by mid-year, which is joined with a large sized operation to invest the proceeds of Fed-owned mortgage securities into the government bond market as well.
G7 Banana Republics ON the Money Printing Inflation Road to ZIMBABWE! -- By: Ty Andros - MarketOracle.co.uk
The global financial cataclysm is mushrooming with every stroke of the keyboard at a central bank, with the issuance of new debt to cover old debt, and with the illusion of creating money out of thin air. It is all debt, nothing else, with no final settlement. EVER. You exchange the money you work for and save and buy a government bond; they print the money to pay you back and PRETEND you have been paid. The situation is just as Von Mises outlined: "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved"-Ludwig Von Mises
The LEADERS of the developed world have chosen the latter route. This is a currency and financial-system extinction event, make no mistake. Only the zigs and zags on the path to that destination are UNKNOWN. We're seeing the most powerful forces on the planet aligned against each other: King Kong (Mother Nature and Darwin) versus Godzilla (public servants, banksters, elites and crony capitalists).
Obama Plans to Rescue States With Debt Burdens
By MICHAEL COOPER and SHERYL GAY STOLBERG - NYTimes.com
President Obama is proposing to ride to the rescue of states that have borrowed billions of dollars from the federal government to continue paying unemployment benefits during the economic downturn. His plan would give the states a two-year breather before automatic tax increases would hit employers, and before states would have to start paying interest on the loans.
The proposal, which administration officials said would be included in the 2012 budget that the president is scheduled to unveil next week, was greeted coolly by Republicans on Capitol Hill, who warned that the plan would ultimately force many states to raise their unemployment taxes in the years to come.
But the White House is calculating that the proposal will ultimately appeal to Republicans because it involves a tax moratorium right now for hard-hit states during a still-fragile economic recovery.
More states launch program to help distressed homeowners
By Julie Schmit, USA TODAY
A $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds.
The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners.
Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments.
Home Value Drop Leaves 27% of U.S. Mortgages Underwater
By Daniel Indiviglio - The Atlantic.com
It's no secret that U.S. home values have begun broadly declining again since last summer. Online real estate marketplace Zillow provides some information today on how severe the effect has been. Home values fell 2.6% in the third quarter -- the most since the first quarter of 2009, when the home buyer credit was put into place. Since it expired last spring, prices began to dip again. Declining home values are also putting more borrowers underwater.
How bad is it? According to Zillow:
Negative equity rose to 27 percent of all single-family homes with mortgages, from 23.2 percent in Q3. Accelerated home value declines and a temporary slowdown in foreclosures both caused negative equity rates to jump.
Postal Service warns of default as losses mount
By Ben Rooney
NEW YORK (CNNMoney) -- The U.S. Postal Service warned Wednesday that it may default on some of its financial obligations later this year after reporting yet another quarterly loss.
The USPS, a self-supporting government agency that receives no tax dollars, said it suffered a loss of $329 million in the first quarter of federal fiscal year 2011. That compared with a loss of $297 million a year earlier.
The agency has been suffering from an ongoing decline in mail volume, which has undercut revenues, while retiree health care costs have been straining its reserves.
Excluding costs related to retiree benefits and adjustments to workers' compensation liability, the Postal Service said it had net income was $226 million in the first quarter, which ended Dec. 31.
With Job Openings Falling, Trouble Could Be Coming
By MICHAEL PANZNER - DailyFinance.com
The Bureau of Labor Statistics released data this week on its latest Job Openings and Labor Turnover Survey, which revealed that job openings fell in December for the second straight month.
As the saying goes, one swallow doesn't make a summer -- and such a small sample doesn't necessarily tell us much about the longer outlook for the labor market. But that doesn't mean the latest data are irrelevant. On the contrary, a comparison of the technical relationship between JOLT's job-openings rate (JOR) and the total number of employees on nonfarm payrolls (TNP) indicates that a divergence between the two measures may well serve as a leading indicator for the labor market as a whole.
US unemployment to remain high for years, says Bernanke
BBC.co.uk
The US unemployment rate will not return to pre-financial crisis levels for "several years", Federal Reserve chairman Ben Bernanke has said.
Until the economy sees sustained and strong job creation, "we cannot consider the recovery to be truly established", he added.
Mr Bernanke also said the US government budget deficit, which rose sharply during the crisis, was "unsustainable".
The long-term challenges of reducing the deficit were "daunting", he added.
This was because the underlying reasons for the deficit were not additional government expenditure during the crisis, but "the ageing of the population and rapidly rising healthcare costs", he told the Congressional Committee on the Budget.
What's the Real Unemployment Number?
By CHARLES HUGH SMITH - DailyFinance.com
Last week's surprisingly sharp decline in the unemployment rate from 9.4% to 9% and equally surprising anemic job growth -- 36,000 new jobs -- left a lot of investors scratching their heads. How could the unemployment rate plummet so significantly while a such a trivial number of new jobs were created?
If we simply extrapolate those numbers, we get some nonsensical results. If adding 36,000 jobs to the 139 million jobs in the U.S. economy lowers the unemployment rate by 0.4 percentage points, then adding just 720,000 jobs should lower the unemployment rate by 8 points -- from 9% to only 1%.
When the Unemployed Lose Faith in the System
By Bill Bonner - dailyreckoning.com
02/09/11 Baltimore, Maryland - Dow plus 71 yesterday. Gold plus $15.
Everything seems okay, doesn't it? Good, then let's look deeperÉat the story behind the story...
As we've been saying, elites look out for themselves. But why not? Everyone looks out for Numero Uno. No? Isn't that what you'd expect?
Every organization has some people in control of it. Government is no exception. Often, the people with real control are not those who appear to have the reigns of power. Sometimes, the real power is hidden behind the scenes...
Some of the most remarkable and successful societies have been ruled by slaves. No kidding. The Mamluks in Egypt and the Janissaries in the Ottoman Empire. They were captured or bought in Europe. The boys - usually Christian - were taken to special training camps. There, they were converted to Islam and learned the arts of war and administration. They became soldiers. Or bureaucrats. Generals. Governors. They ran things on a day-to-day basis... for the elite powers behind them.
WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40%
By John Vidal, environment editor - guardian.co.uk
The US fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show.
The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels - nearly 40%.
The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.
Clinton Ambassador Meeting: Unprecedented Mass Meeting Of Top Envoys
AP - Jan 31, 2011 - HuffingtonPost.com
WASHINGTON - Secretary of State Hillary Rodham Clinton is convening an unprecedented mass meeting of U.S. ambassadors.
The top envoys from nearly all of America's 260 embassies, consulates and other posts in more than 180 countries will be gathering at the State Department beginning on Monday. Officials say it's the first such global conference.
The gathering comes at a time of crisis in Egypt that could reshape dynamics in the Middle East, fallout from leaked diplomatic documents and congressional calls for sweeping cuts in foreign aid.
China prepares for 'severe' drought
By Cara Anna, Associated Press - USAToday.com
BEIJING - Chinese officials said Wednesday they are preparing for a severe, long-lasting drought in several parched provinces, causing wheat prices to spike on the prospect of the world's largest consumer putting pressure on a global supply that's already squeezed.
Premier Wen Jiabao led a State Council meeting Wednesday on increasing grain production in the country that's both the world's largest wheat grower and largely self-sufficient in supply.
The U.N.'s food agency has warned that the monthslong drought is driving up the country's wheat prices, and now the focus is on whether China will buy more from the global market, where prices have already risen about 35% since mid-November.
Haiti braces for return of Jean-Bertrand Aristide Island issues new passport for former president forced out in 2004 and living in exile in South Africa
By Isabeau Doucet in Port-au-Prince - guardian.co.uk
Haiti has issued a diplomatic passport to former president Jean-Bertrand Aristide, in effect ending his seven-year exile in South Africa.
His lawyer, Ira Kurzban, said he had collected Aristide's new passport in Port-au-Prince. "He's going to try to return as soon as he can," Kurzban said.
Aristide has asked the government to provide him with the security constitutionally promised to a former president.
Asked last month whether he was ready to return, Aristide said he would come back "today, tomorrow, at any time".
Speculation that he would try to get back to Haiti increased after the return of former dictator Jean-Claude "Baby Doc" Duvalier, who now faces charges of embezzlement and crimes against humanity
Egypt nears military coup. USS warships in Suez Canal
DEBKAfile.com
A fresh surge of popular anti-Mubarak protest ripping across Egypt Tuesday, Feb. 8 has brought the country closer to a military coup to stem the anarchy than at any time since the street caught fire on Jan. 25.
Vice President Omar Suleiman warned a group of Egyptian news editors that the only choice is between a descent into further lawlessness and a military takeover in Cairo. The distinguished political pundit of the 1960s and 1970s Hasnin Heikal saw no other way out of the crisis but a government ruling by the army's bayonets.
The arrival of US naval, marine and air forces in the Suez Canal's Greater Bitter Lake indicated that the crisis was quickly swerving out of control.
DEBKAfile's military sources report that the American force consists of the USS Kearsarge Expeditionary Strike Group of six warships. Helicopters on some of their decks are there to carry and drop the 2,200 marines of the 26th Marine Expeditionary Unit which has been bolstered by two special operations battalions.
The flotilla has a rapid strike stealth submarine, the USS Scranton, which is designed to support special forces' operations.
Egypt's VP warns protests 'must end soon'
By Michael Winter, USA TODAY
In an ominous warning after more than two weeks of turmoil, Egyptian Vice President Omar Suleiman says that "we can't put up with" continued protests in Cairo's central Tahrir Square for a long time and that the crisis must end soon, the state-run MENA news agency is reporting.
Suleiman also said during a meeting with newspaper executives that there will be "no ending of the regime" and no immediate departure for President Hosni Mubarak, The Associated Press writes.
He said the regime wants "dialogue" to resolve calls for democratic reforms, according to AP. "We don't want to deal with Egyptian society with police tools," he said.
Lawlessness spreads in N. Sinai as Hamas transfers al Qaeda cells
DEBKAfile.com
Intelligence updates reaching Israel reveal that Hamas plans to follow up its attack on the Egyptian-Israel-Jordanian gas pipeline Saturday, Feb. 5, with more large-scale operations against Israel, using Egyptian Sinai as its launching-pad.
Since the uprising began in Egypt two weeks ago, more than 1,000 Hamas gunmen have infiltrated North Sinai from the Gaza Strip and seized control of the region. They were followed by Al-Qaeda cells which redeployed from Iraq in the Gaza Strip. Hamas has established a command center in North Sinai for coordinating its operations with the Muslim Brotherhood in Cairo.
Israeli officers serving in this border sector told DEBKAfile's military sources that the situation there was getting dangerously out of control: Hamas was giving free rein to lawless elements Ð not only Bedouin smugglers but other international networks, some working hand in glove with Somali pirates to smuggle into Israel armed criminal gangs posing as asylum and job seekers, prostitutes and vast quantities of drugs.
Those sources believe that Hamas and al Qaeda terrorists are sneaking into Israel from Sinai under cover of the swelling illegal traffic.
Gerald Celente on Jan Mickelson - WHO Radio Iowa
How Would Democracy in Egypt Change the Muslim Brotherhood? Operating within an authoritarian regime has moderated the group, but that could reverse
By Daniel Brumberg - The Atlantic.com
At this stage in the revolution unfolding in Cairo's Tahrir Square and beyond, it is hard to imagine how Mubarak's regime can last much longer. If Egypt establishes a post-Mubarak democracy, how big of a role can we expect the Muslim Brotherhood to play? The answer may have less to do with the group's Islamist ideology than its, and Egypt's, political organization.
Politics is about organization. Islamists are such a critical force not because they represent a majority; on the contrary, they are influential because they represent an organized plurality, one that faces an organized state and a disorganized civil society (labor, women's groups, students, businessmen). Opposition to autocracy may be a strong mobilizing force in ousting a regime, but it is not sufficient to transform today's diverse masses of protesters into a political force with the organization and staying power to compete politically with Islamists.
Get Ready to Compete With the Muslim Brotherhood: Egypt Could Chart a 'Third Way'
By Ayaan Hirsi Ali - The Huffington Post
WASHINGTON -- In 1985 as a teenager in Kenya, I was an adamant member of the Muslim Brotherhood. Seventeen years later, in 2002, I took part in a political campaign to win votes for the conservative party in the Netherlands. Those two experiences gave me some insights that I think are relevant to the current crisis in Egypt. They lead me to believe it is highly likely but not inevitable that the Muslim Brotherhood will win the elections to be held in Egypt this coming September.
As a participant in an election campaign, I learned a few basic lessons.
EGYPT: True or false? Concerns about the Muslim Brotherhood
By Alexandra Zavis - LATimes.com
Neil Hicks, international policy advisor for Human Rights First, has provided an assessment of some commonly expressed concerns about the banned Muslim Brotherhood.
Hicks, who has followed Egyptian politics for more than two decades, agrees that the Muslim Brotherhood is the largest and most organized opposition group in Egypt and that it would do well if free elections were held for a new parliament in a few months.
But he takes issue with the suggestion that any government in which the Muslim Brotherhood plays a substantial role would inevitably be a threat to U.S. interests and would seek to abolish Egypt's peace treaty with Israel.
Obama Administration Won't Endorse Calls For Immediate Resignation Of President Mubarak
AP/The Huffington Post
WASHINGTON -- The Obama administration is urging Egyptian leaders to include more people in a national dialogue on reform but won't endorse demands from protesters for the immediate resignation of embattled President Hosni Mubarak.
As the U.S. anxiously awaits political developments in its staunchest Arab ally, administration officials warned Monday that a precipitous exit by Mubarak could set back the country's democratic transition.
After several days of mixed messages, the administration coalesced around a position that cautiously welcomes nascent reform efforts begun by newly appointed Vice President Omar Suleiman that may or may not result in Mubarak's resignation before September, when elections are to be held. Mubarak has said he will not run.
Islamic Militants Are Attacking Egyptian Security Forces In Sinai
By Grace Wyler - BusinessInsider.com
Militant groups in the Sinai Peninsula are taking advantage of the political breakdown in Cairo to push the desert peninsula further into lawlessness.
Members of the radical Islamic group Takfir wal-Hijra clashed with Egyptian security forces in a two-hour battle on the Gaza border Monday, according to the Ma'an News Agency. The attack comes just days after Bedouin tribesmen set off an explosion at a Sinai natural gas plant, temporarily disrupting the flow of gas to Israel and Jordan.
Which Currency Will Crash First?
By Rosanne Lim - GoldSeek.com
2010 was an exciting year for currencies. The dollar, euro, the yen, and the yuan all went under the spotlight. Except for the yuan, each experienced drastic swings wrought about by internal or external factors. But overall, these events underwhelmed confidence in paper money. The main reason is because of the sovereign debt crisis that swept the world.
Most of the developed nations including the United States, Japan, and a number of European countries have unsustainable debt. The US and Japan, for example, are heading towards insolvency. Meanwhile, the only reason why several countries in the EU haven't defaulted is the bail-out by stronger EU members.
MIDDLE EAST: Governments clamp down on Egypt-inspired protests, rights group says
By Alexandra Zavis -LATimes.com
Human Rights Watch says governments in the Arab world are clamping down on protests inspired by the uprisings in Egypt and Tunisia.
"Images of the uprisings in Tunisia and Egypt have mesmerized the Arab public but have terrified their rulers," Sarah Leah Whitson, the group's Middle East and North Africa director, said in a statement Tuesday. "They have responded with their usual mix of repression and intimidation to nip the buds of any wider democratic blossoming."
Among the incidents cited by Human Rights Watch:
Police and military forces in Yemen used live ammunition and rubber bullets to disperse protesters on Thursday.
Gold Game Changer: J.P. Morgan Accepts Bullion as Money
By Janet Tavakoli - HuffingtonPost.com
J.P. Morgan Chase & Co. announced on February 7, 2011 that it will accept physical gold as collateral for investors that want to make short-term borrowings of cash or securities.
Presenting gold to satisfy demands for performance bond collateral has been allowed on the London CME in a limited way since October 2009. As of November 22, 2010, the Intercontinental Exchange Inc. (ICE) has accepted gold bullion as collateral on all credit default swaps and energy transactions.
I don't recall the G-20 declaring gold a new currency. Yet JPMorgan Chase and a couple of financial market exchanges have effectively declared that gold is an alternative currency.
In other words, gold is money.
J.P. Morgan Will Accept Gold as Type of Collateral
By CAROLYN CUI And RHIANNON HOYLE - WSJ.com $$
Gold hasn't reinvented itself as a currency yet. But it is getting closer.
J.P. Morgan Chase & Co. said it will allow clients to use the metal as collateral in some transactions. For example, a hedge fund wanting to borrow money for a short period can put up gold as collateral and use the borrowings to invest elsewhere, betting on making a better return. Typically, banks accept only Treasury bonds and stocks in such agreements.
By making the announcement, J.P. Morgan is effectively saying gold is as rock solid an investment as triple-A-rated Treasurys, adding to a movement that places gold at the top tier of asset classes. It also is trying to capitalize on all the gold now owned by hedge funds and private investors that is sitting idle in warehouses.
Attention, J.P. Morgan customers: 'Got gold?'
By AARON ELSTEIN - Crain's New York Business
In a sign of how hot gold has become, J.P. Morgan announced Monday that it will start accepting the precious metal as collateral for certain transactions instead of cash.
"Many clients are holding gold on their balance sheets as an inflation hedge and are looking to make these assets work for them as collateral," said John Rivett, a collateral management executive at J.P. Morgan's securities services division, in a prepared statement.
The bank said customers could post gold as collateral to borrow securities or for ultra-short-term loans known as repurchase obligations.
Before you start pawing through your jewelry drawer, be aware that J.P. Morgan's announcement is targeted at institutional investors, some of which have become ravenous buyers of gold since the financial crisis struck.
Bull market in gold, silver to last for years
By Ahmad Hassam - CommodityOnline.com
Do you love to wear precious metals like gold, platinum or palladium? Women for sure love wearing precious metals like gold and platinum. The best gift of love is to give a gold ring or necklace. Since, the dawn of human history, metals like gold, silver and platinum have been considered to be highly precious and used for trading and storing wealth.
Gold and silver have withstood the test of time and are still considered to be a store of value and as a medium of exchange. For a long time, the world had used the gold standard to back the global financial system. As an investor, you might ask what is in it for you by investing in precious metals like gold, silver, platinum or palladium.
What's old is new again in gold
CommodityOnline.com The Gold Report: Gold dipped from about $140 per ounce in the bull market of January 1976 to below $105/oz. in September of that year. Ultimately, it proved only a pullback on the way to gold's peak of $850/oz. in 1980. Are we seeing a similar pattern now, or is this correction simply much ado about nothing? Doug Groh: It's hard to say if this is a similar pattern. The market conditions are different than they were 35 years ago. However, cycles can be somewhat repetitive. I think the more important questions are: What does this correction mean and how long will it take?
Looking back at 2010, the gold market did very well with a nearly 30% rise in price. It's normal to have some type of correction after such an upward surge. Whether the market will experience a 25% correction like back in the late 1970s is hard to tell. But it is not out of the realm of possibility that gold could consolidate at levels seen during 2010 to what was the year's annual average of about $1,225/oz. before it marches to a higher level.
A correction is a healthy thing because it can shake out the weak players, traders and undedicated investors. It solidifies a base.
Americans Will Flock Into $5,000 Gold and $500 Silver
Gold Futures Rise as Inflation Concerns Mount; Silver Tops $30
By Pham-Duy Nguyen
Feb. 8 (Bloomberg) -- Gold futures climbed to a two-week high on demand for a hedge against rising consumer prices, after China increased borrowing costs to slow inflation. Silver advanced to a one-month high, topping $30 an ounce.
China joined India, Indonesia, Thailand and South Korea in boosting interest rates this year as Asian policy makers seek to cool the economies leading a global rebound. A report in China is forecast to show inflation in the country expanded at the fastest pace in 30 months. World food prices rose to a record in January and probably will remain elevated, the United Nations said last week.
Rising Prices, the Cost of Living, and Inflation
By Dennis P. Lockhart
President and Chief Executive Officer Federal Reserve Bank of Atlanta
I think of Anniston as Main Street America. Main Street is justifiably concerned today about the sustainability of the modest recovery that's been under way now for six quarters, the persistence of high unemployment, and the specter of inflation. These concerns, in combination with appropriate worry over the fiscal track the country is on, make for a heavy weight of apprehension holding back business investment, hiring, consumption, to some extent, and - taken together - the growth rate of the economy.
Today I want to give you my assessment of our current economic circumstances with some recent historical context. I will comment briefly on three principal indicators of economic health: growth, employment, and inflation. And because movements of commodity and other "headline" prices seem to be creating the impression in the popular consciousness of a growing inflation problem, I would like to give particular attention today to inflation.
Inflation Is A Deliberate Policy Everywhere
By: Steve Saville, The Speculative Investor - GoldSeek.com
While an economy-wide inflation-fueled investment bubble is in full swing, policy-makers will look smart. At least, they will look smart to the economically illiterate. But when the bubble bursts, the policy-makers that looked ingenious will quickly begin to look decidedly less so. In fact, if they try to short-circuit the corrective process that must follow the bursting of an inflation-fueled bubble -- by ramping up government spending, for example -- there's a very good chance that they will end up being widely perceived as incompetents. Which, of course, is appropriate. In Japan, the process via which policy-makers go from being widely perceived as ingenious to being widely perceived as incompetent has run its full course, whereas the process is probably about half complete in the US and is yet to begin in China.
There's no doubt that the aforementioned process will eventually occur in China, because China's central planners have made similar mistakes to their counterparts in Japan and the US. In particular, they've fomented a massive investment bubble and have attempted to use inflation to cover-over the problems caused by earlier inflation.
China: The new Alan Greenspan Yuan rising. But not by enough?
By Paul R. La Monica
NEW YORK (CNNMoney) -- China's central bank raised interest rates Tuesday morning. And the market responded with a collective yawn. At first, stocks barely budged. Ditto for bond yields, oil and the dollar.
As the day progressed, stocks actually marched even higher.
So much for fears of global inflation running amok and worries about how emerging markets would be forced to tighten monetary policy.
Yes, I'm being a bit glib. Investors would be unwise to ignore what's going on in China. The fact that the People's Bank of China raised rates by a quarter of a percentage point to just over 6% is of course interesting.
Munis Swung 'Too Far Into Default Panic,' Pimco Says
By Matt Robinson
Feb. 8 (Bloomberg) -- State and local bonds offer some of the most compelling value in credit markets because the U.S. municipal debt market has "swung too far into default panic," according to Pacific Investment Management Co.
"The real level of defaults that the muni market will experience will be well below what the market currently implies, not to mention some of the more extreme predictions of hundreds of billions of dollars worth of muni defaults," Pimco, the world's biggest manager of bond funds, wrote in a report today.
Meredith Whitney, the banking analyst and chief executive officer of Meredith Whitney Advisory Group, speaking Dec. 19 on CBS Corp.'s "60 Minutes," predicted that states' fiscal stress would spark a "spate" of defaults among municipalities amounting to "hundreds of billions of dollars."
Meredith Whitney & Municipal defaults
from Jan 12, 2011
Treasuries Drop on Reduced Foreign Central Bank Bid at Auction
By Cordell Eddings and Susanne Walker
Feb. 8 (Bloomberg) -- Treasuries fell after the sale of $32 billion of three-year debt, the first of three U.S. securities sales, drew the lowest demand in the category of bidders that includes foreign central banks since May 2007.
Ten-year note yields rose to the most since April before Treasury sells $24 billion in 10-year notes tomorrow and $16 billion in 30-year bonds the following day. An unexpected drop in U.S. unemployment Feb. 4 and measure of small business confidence rose, adding to evidence the economy is accelerating. Federal Reserve Chairman Ben S. Bernanke testifies tomorrow before the House Budget Committee amid speculation about how the central bank will pull back from its debt-buying to bolster the U.S. economy.
The Road to Perdition
The Bernankean WorldView - As Misguided As Ever
By Pater Tenebrarum - acting-man.com
We actually said last week we would not comment on Bernanke's truly cringe-worthy speech delivered last Thursday. Our reasoning was that he didn't say anything unexpected or anything we have not heard a thousand times before. This is certainly true, but we now feel compelled to comment anyway, if only to shine a light on what a horrible steward of the monetary system he is - while acknowledging that he certainly didn't design said system and is in equal measure its prisoner as much as its director.
Following his speech he was subjected to a soft-balling exercise (Q&A) at the National Press Club in Washington, as Randall W. Forsyth put it in Barron's. Below we'll quote the synopsis of the important parts of the Q&A as related in the Barron's article.
The whole thing was as good an example of Bernanke's Princeton-bred sophistry as you will ever find. Princeton of course is the major hotbed of the semi-totalitarian Keynesian economic philosophy and the associated attempt to make economics more 'scientific' by subjecting it to econometric methods - measuring what can not be measured and deriving 'models' and 'theories' from these nonsensical efforts at imitating the natural sciences - the same methods that guide the Federal Reserve in its decision making process.
Where Have All The Workers Gone?
By: Michael Ashton - SafeHaven.com
Protests in Egypt have temporarily receded somewhat. This was inevitable when the President ignored the protestors' "Day of Departure," calling the protestors' bluff in a bet that they wouldn't be able to back up the implied threat. As it happened, Mubarak was right about that.
However, as one of the more skilled politicians in the Middle East - and, dictator or not, he certainly is a skilled politician - he is likely to be aware that his alternatives now are to dial up the brutality so as to crush his opposition and retain control, to return to business-as-usual and risk a bloody coup, or to look for a graceful way to exit. Reports circulated today that the man was considering the latter in the form of possibly taking an "extended medical leave in Germany." German officials denied that any such visit had been requested, but it is an interesting and elegant segue from the current unstable equilibrium to a perhaps more-stable one.
Report Urges G-20 Overhaul
By NATHALIE BOSCHAT - WSJ.com
PARIS - An updated report commissioned by French President Nicolas Sarkozy will recommend that the Group of 20 economies undergo a major structural overhaul while also expanding the powers of the International Monetary Fund to deal with financial crises, according to one of the report's authors.
France, which holds the G-20's rotating presidency this year, has made reforming the international monetary system, damping the volatility of commodities prices and improving global governance its top priorities.
The report's authors include former IMF managing directors Michel Camdessus and Horst Kšhler as well as former U.S. Federal Reserve Chairman Paul Volcker. They will present their proposals to French Finance Minister Christine Lagarde in advance of the Feb. 18-19 meeting of finance ministers from the G-20 industrialized and developing nations.
Most borrowers default on revolving accounts before mortgage
TheTruthAboutMortgage.com
A new study from credit bureau Equifax claims most borrowers default on a revolving account, such as a credit card or HELOC, before defaulting on their mortgage.
The company analyzed consumer credit trends using a new metric called "default distance," which is the number of months between the revolving debt default and the first occurrence of foreclosure.
Analysis by Equifax found that revolving account defaults continue to occur before first mortgage loan defaults, with the timespan between the two decreasing over time.
The most substantial decrease in default distance was on high loan-to-value ratio mortgages, like option arms, meaning strategic default is coming into play.
And default distance is shortest in hard-hit states like Florida, California and Michigan, while longest in healthy states such as Texas and South Dakota.
Foreclosures raise US economic stress
By: Martin Crutsinger - AP - WashingtonExaminer.com
The nation's economic stress inched up in December because higher foreclosures outweighed lower unemployment, according to The Associated Press' monthly analysis.
Bankruptcy levels remained largely unchanged from November. But the depressed housing market took a toll. Foreclosure rates rose in 33 states, most sharply in Utah, New Jersey, Nevada and Arizona.
Most analysts expect the economy to gain momentum this year, in part because of a tax-cut package that lowers workers' Social Security taxes and puts more money in their paychecks. But two straight months of higher stress to end 2010 marked a setback after the nation's economic pain had eased since the start of last year, the AP Economic Stress Index showed.
Is Mortgage Quality Deteriorating Again? Already?
By Daniel Indiviglio - The Atlantic.com
This sounds like pretty grim news. Just yesterday, we wrote that the commercial mortgage industry is beginning to come back to life, thanks in large part to commercial mortgage-backed securities market finding its footing. It seems that the return of mortgage securitization is also bringing back poor underwriting practices, however. This is either very bad or completely irrelevant.
First, here's the claim, via Jody Shenn at Bloomberg:
"There's some crap getting done," David Jacob, an executive managing director at credit-rating company S&P, said today during a panel discussion at the American Securitization Forum trade group's annual meeting in Orlando, Florida. "It's surprising to me this early in the cycle that some of that could be happening."
2.1 million mortgages 90+ days late but not in foreclosure
TheTruthAboutMortgage.com
It's quite evident that the foreclosure backlog is growing, as 2.1 million mortgages are at least 90 days late, but not yet in foreclosure, according to the December Mortgage Monitor report from Lending Processing Services.
The company noted that while loans in this category have declined, the number of loans moving to seriously delinquent status beyond 90 days is still far outpacing the number of foreclosure starts.
Additionally, the average borrower in foreclosure hasn't made a mortgage payment for 507 days, which is up from 319 days back in January 2009.
The average days delinquent for a mortgage characterized as 90+ days late is 334 days that's more than times what it should be.
Amazing Satellite Images Of The Ghost Cities Of China
By Chandni Rathod and Gus Lubin - BusinessInsider.com
The hottest market in the hottest economy in the world is Chinese real estate. The big question is how vulnerable is this market to a crash.
One red flag is the vast number of vacant homes spread through China, by some estimates up to 64 million vacant homes.
We've tracked down satellite photos of these unnerving places, based on a report from Forensic Asia Limited. They call it a clear sign of a bubble: "There's city after city full of empty streets and vast government buildings, some in the most inhospitable locations. It is the modern equivalent of building pyramids. With 20 new cities being built every year, we hope to be able to expand our list going forward."
Fire and Ice in China's Explosive Housing Market
By Derek Thompson - The Atlantic.com
China's real estate market is on fire. Housing prices in Beijing and Shenzhen are up about 140% in the last five years. Residential housing investment as a share of China's GDP has tripled from 2% in 2000 to 6% in 2011. Why is that a key figure? Because at the height of our housing bubble, U.S. residential housing accounting for ... that's right, 6% of GDP.
In the short term, a fiery housing market is giving off a cozy glow for China's rapidly emerging middle class. But China's leaders, having read one or several newspapers in the last few years, know that real estate conflagrations have a tendency to destroy your economy. That's why we're seeing market-cooling measures trickling out of Beijing, the Economist reports:
These included [property taxes in large cities and] higher downpayments for buyers of second homes. Owners of two or more homes were banned from buying more. The party also plans a big increase in the construction of government-subsidised housing.
Deutsche Bank Sees U.S. Rents Doubling Inflation
By Carlos Torres
Feb. 8 (Bloomberg) -- A plunge in rental vacancies will drive up monthly housing payments in 2011, propelling U.S. consumer costs excluding food and fuel to increase at more than twice last year's pace, according to economists at Deutsche Bank Securities Inc.
The CHART OF THE DAY graphs year-over-year changes in so- called core consumer prices from the Labor Department and the inverted quarterly vacancy rate of rental properties from the Census Bureau. Rents, which dropped as unoccupied properties reached a record 11.1 percent of the rental market in the third quarter of 2009, may be about to pick up as vacancies decrease, the Deutsche economists said.
An unstable tower of breaking promises
By NICOLE FOSS, a.k.a. "STONELEIGH" at The Automatic Earth
.... Just How Ugly Is The Truth Of America's Unemployment
The data from the Household survey are truly insane. The labour force has plunged an epic 764k in the past two months. The level of unemployment has collapsed 1.2 million, which has never happened before. People not counted in the labour force soared 753k in the past two months.
These numbers are simply off the charts and likely reflect the throngs of unemployed people starting to lose their extended benefits and no longer continuing their job search (for the two-thirds of them not finding a new job). These folks either go on welfare or they rely on their spouse or other family members or friends for support. Stoneleigh: The middle class is forced to run on a treadmill that is increasing in speed, so that they have to run faster and faster just to keep up. More and more people are failing to do so and being flung off the back all the time, but so far their plight goes largely unnoticed. For now there are sufficient bread and circuses to distract the rest of the masses, and enough opportunities for short-term profit for those at the top of the pyramid to focus their attention away from reality as well. In the meantime the pressure builds quietly closer to criticality, and as we've seen recently in Egypt, a social pressure cooker can suddenly erupt. Prevailing social mood can turn on a dime.
Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels
By David Dietz
Feb. 8 (Bloomberg) -- The landmark Blackstone Hotel in downtown Chicago, which has hosted 12 U.S. presidents, opened in 2008 after a two-year, $116 million renovation. Inside the Beaux Arts structure, built in 1910, buffed marble staircases greet guests spending up to $699 a night for rooms with views of Lake Michigan.
What's surprising isn't the opulent makeover: It's how the project was financed. The work was subsidized by a federal development program intended to help poor communities.
The biggest beneficiary of taxpayer help for the Blackstone revamp was Prudential Financial Inc., the second-largest U.S. life insurer. The company got $15.6 million in tax credits from the U.S. Department of the Treasury for helping to fund the project, according to Chicago city records, Bloomberg Markets magazine reports in its March issue.
Zero Job Growth: Low Rates and High Deficits Aren't Helping U.S. Workers
BY MARTIN HUTCHINSON, Contributing Editor, Money Morning
When the government released its latest jobs report last week, economists were initially cheered because it showed that the nation's unemployment level had dropped much more sharply than anyone expected.
But that cheer immediately turned into concern when the report also revealed that the U.S. economy created only 36,000 new jobs in January. That's so far below the norm for this stage of an economic recovery that it would take us 10 years to put back to work all the folks who have lost their jobs since 2007.
In short, it's going to take a decade - and probably more - for normalized job growth to return to the U.S. economy.
Something has gone very wrong with the U.S. job-creation machine. Economists have been trying to solve this puzzle for more than 30 years.
And we found the answer. Doomed If You Do, Doomed If You Don't
Obama to Seek Debt Relief for State Jobless Programs
By Nicholas Johnston
Feb. 8 (Bloomberg) -- President Barack Obama will seek aid for state unemployment-insurance programs burdened by debt because of high jobless rates, White House Budget Director Jack Lew said.
As part of the 2012 fiscal budget, Obama will seek a delay of state tax increases and a suspension of interest payments owed to the federal government, along with a future increase to the minimum income level subject to unemployment insurance taxes, Lew said.
"It's a very important policy," Lew said in an interview at Bloomberg News's Washington bureau. "It reduces the exposure of the federal budget in the future."
States, led by California, Michigan and Pennsylvania, have borrowed $42 billion from the federal government as of Feb. 4 because their unemployment trust funds have run out of money, according to the Labor Department. From 2009 until this year, the loans had been interest-free under a provision of the economic-stimulus program.
Raise taxes or cut cops? Camden, N.J., to decide
By Aaron Smith
NEW YORK (CNNMoney) -- The city council of crime-ridden Camden, N.J., is scheduled to vote Tuesday on whether to increase property taxes to rehire dozens of laid-off police officers and firefighters.
Last month, Camden laid off 160 police officers, nearly half the force, as well as 60 of its 215 firefighters. The proposed tax increase would be used to fund the rehiring of 47 of those police officers and 13 firefighters.
To pay for the rehires, councilors will consider a 21% tax levy increase proposed by Mayor Dana Redd. If approved, the taxes for property owners would increase by an average of $160 per year, according to mayoral spokesman Robert Corrales.
House rejects extensions of Patriot Act provisions
USAToday.com
WASHINGTON (AP) - The House on Tuesday failed to extend the life of three surveillance tools that are key to the nation's post-Sept. 11 anti-terror law, a slipup for the new Republican leadership that miscalculated the level of opposition.
The House voted 277-148 to keep the three provisions of the USA Patriot Act on the books until Dec. 8. But Republicans brought up the bill under a special expedited procedure requiring a two-thirds majority, and the vote was seven short of reaching that level.
The Republicans, who took over the House last month, lost 26 of their own members, adding to the 122 Democrats who voted against it. Supporters say the three measures are vital to preventing another terrorist attack, but critics say they infringe on civil liberties. They appealed to the antipathy that newer and more conservative Republicans hold for big government invasions of individual privacy.
Long-Term Care: New Fixes Insurers Are Rolling Out Alternatives to Pricey Coverage; Weighing Pros, Cons
By M.P. MCQUEEN - WSJ.com
As long-term-care insurance grows increasingly expensive and harder to get, insurers are stepping into the breach with new life policies and annuities that pay out long-term-care benefits during one's lifetime. But the new products may be an imperfect substitute.
Hartford Financial Services Group Inc., Prudential Financial Inc., MetLife Inc., Genworth Financial Inc. and others have either introduced or expanded offerings of "combo" products-permanent life-insurance policies or annuities with "accelerated" death benefits or "living benefit" riders-which allow owners to draw down cash during their lifetime if they become terminally or chronically ill. The features were first introduced by some insurers in the early 1990s.
Permanent life insurance includes both a death benefit and a savings or investment component, while annuities are contracts that pay a lump sum or a stream of income over a period of time. Long-term-care insurance pays for nursing-home care and other expenses uncovered by Medicare or health insurance if the policyholder can't live independently.
S.D. GOP's gun bill takes aim at 'Obamacare'
Ploy would require arms ownership
By Valerie Richardson - The Washington Times
Unlike conservatives who reflexively rail against the mandate in President Obama's health care initiative that all American buy insurance, South Dakota Republicans say they are looking at the big picture.
If the government can require Americans to buy health insurance, the reasoning goes, then why can't the same government require them to purchase something a bit higher on the conservative wish list? That is why five GOP state legislators have introduced a bill that would require every South Dakotan age 21 or older to purchase a gun.
Venezuela: $200 Oil
By Douglas A. McIntyre - 24/7 Wall Street
The oil minister of Venezuela, Rafael Ramirez, said a shutdown of the Suez Canal could push oil prices above $200. "There is sufficient oil (in the market) and there have been no interruptions, but if they close Suez, that could take the oil price to $200," Ramirez told reporters, according to Reuters.
Comments like Ramirez's tend to bring speculators into the market as do any statements from large oil producing nations that point to demand problems.
U.N. Food Agency Issues Warning on China Drought
By KEITH BRADSHER - NYTimes.com
HONG KONG - The United Nations' food agency issued an alert on Tuesday warning that a severe drought was threatening the wheat crop in China, the world's largest wheat producer, and resulting in shortages of drinking water for people and livestock.
China has been essentially self-sufficient in grain for decades, for national security reasons. Any move by China to import large quantities of food in response to the drought could drive international prices even higher than the record levels recently reached.
"China's grain situation is critical to the rest of the world - if they are forced to go out on the market to procure adequate supplies for their population, it could send huge shock waves through the world's grain markets," said Robert S. Zeigler, the director general of the International Rice Research Institute in Los Baños, in the Philippines.
In Cairo, protesters restless as they hope for U.S. support
By Will Englund - Washington Post
CAIRO - With the barrels of American-designed tanks pointing at them, American-backed air power circling overhead and a long-time American client still sitting in the presidential palace, the protesters in Tahrir Square were starting to get restless.
"No Kentucky! No Kentucky! No Kentucky!" went their chant, using the local slang for KFC food as a call to arms, one that seemed mostly a call for the United States to take a clearer stand in favor of their struggle for an Egyptian democracy.
EGYPT: Authorities create new obstacles for journalists, media watchdog says
By Alexandra Zavis - LATIMES.COM
The Committee to Protect Journalists says Egyptian authorities are creating new obstacles for media workers, despite assurances that they are free to cover protests that have gripped the country for two weeks.
A number of journalists told the New York-based media watchdog that the military is obstructing their work and refusing many of them entry to Tahrir Square, the center of anti-government demonstrations. They say their press cards were confiscated and they were told to obtain new credentials from the Information Ministry, CPJ said in a statement Monday.
In Backing Vice President, U.S. Plays Tricky Hand in Egypt
By HELENE COOPER and DAVID E. SANGER - NYTimes.com
WASHINGTON - Vice President Omar Suleiman of Egypt says he does not think it is time to lift the 30-year-old emergency law that has been used to suppress and imprison opposition leaders. He does not think President Hosni Mubarak needs to resign before his term ends in September. And he does not think his country is yet ready for democracy.
But, concluding that it lacks better options, the United States is backing him for a pivotal role in a still uncertain transition process in Egypt. In doing so, it is relying on the existing government to make changes it has steadfastly resisted for years, and even now does not seem impatient to carry out.
Lessons From Our Egypt Moment
By E.J. Dionne, Jr. - Truthdig.com
In light of the history-shaking events on the streets of Cairo, it's not surprising that a truly remarkable development slipped through the news cycle with barely a nod.
On a unanimous voice vote Thursday, the Senate passed a resolution co-sponsored by John Kerry and John McCain urging Egyptian President Hosni Mubarak to hand power over to a caretaker government as part of a peaceful transition to democracy.
It's easy to be cynical about this as mere feel-good politics. The president, not the Senate, executes foreign policy, and declaring a goal is far easier than bringing it about. Yet this should not distract from how American responses to events in Egypt have been as different as one can imagine from our responses to almost every other issue.
The Egyptian Tinderbox... How Banks and Investors are Starving The Third World
Ellen Brown - SilverBearCafe.com
"What for a poor man is a crust, for a rich man is a securitized asset class." - Futures trader Ann Berg, quoted in the UK Guardian
Underlying the sudden, volatile uprising in Egypt and Tunisia is a growing global crisis sparked by soaring food prices and unemployment. The Associated Press reports that roughly 40 percent of Egyptians struggle along at the World Bank-set poverty level of under $2 per day. Analysts estimate that food price inflation in Egypt is currently at an unsustainable 17 percent yearly. In poorer countries, as much as 60 to 80 percent of people's incomes go for food, compared to just 10 to 20 percent in industrial countries. An increase of a dollar or so in the cost of a gallon of milk or a loaf of bread for Americans can mean starvation for people in Egypt and other poor countries.
You Are Invited
Come to the first Ron Paul monetary hearing
by Llewellyn H. Rockwell, Jr.
The historic first hearing of Chairman Ron Paul's monetary policy committee, to expose the Fed as the prime creator of unemployment and so much human suffering, will take place at: 10:00AM on Wednesday, February 9, 2011, in Room 2128 of the Rayburn House Office Building, the main hearing room of the Financial Services Committee. Rayburn is across the street from the US Capitol at Independence Ave. and South Capitol St., Washington, DC 20003. The witnesses include the eloquent Austro-free-market stars Thomas DiLorenzo of Loyola College and Richard Vedder of Ohio University. This great event is open to the public.
America is not a republic The Constitution Is on Life-Support
by Gary North - LewRockwell.com
"This is a republic, not a democracy. Let's keep it that way!"
When I was a teenager, that was a popular saying in conservative circles. Conservative circles in 1958 were very few and very far between. The movement lacked slogans. Every fringe movement needs a few slogans. Slogans are like secret handshakes in a club. They identify one's true colors to those in the know.
That slogan was misleading then, and it is misleading today.
America is an oligarchy of lawyers and the businessmen who hire them.
In no other nation do five lawyers determine what is lawful and what is not. This supreme authority of five people is both a symbol and the legal foundation of the political system that rules 310 million Americans. Yet we are so used to it that we give it no thought. We assume that this is normative: "the way things are 'sposed to be." Yet it is neither normative nor Constitutional. It is merely traditional.
Gold trades lower on US jobs data, but bull run intact
By Shyamal Mehta
MUMBAI (Commodity Online): After positive release of US jobs data on Friday, Gold prices fell slightly on profit booking. US economy added 36000 jobs in the previous month January which is less than analysts' forecasts of an increase of 135000.
Investors are parking their funds in developed markets on increased economic optimism which is also a cause of recent correction in gold prices.
US jobs data gave a mix report on job market on Friday. It is not providing clear direction for gold prices.
Gold prices are likely to take cues from Egypt issue in the coming few days. Crisis in Egypt is running from last few days. Gold has already discounted the Egypt crisis.
Prepare for the next gold wave towards $1500
Commodity Online
Investors should be prepared for the next gold wave towards the $1500 level, according to Thomas Rosen, PMBG Market Analyst amidst speculators and analysts taking a bearish view on gold in the past two months.
"We have been dead right," says PMBG Market Analyst Thomas Rosen. "As gold prices tried to push up a third time out of its congestion area and failed, creating a triple top, with the third top slightly lower than the other two, the gold market presented a nice opportunity to make some short-term profits on the sell side for once, and we over-hedged accordingly!"
Investors Have $102 Billion Bet on Gold, Silver Gains
By Nicholas Larkin and Pham-Duy Nguyen
Feb. 7 (Bloomberg) -- After the worst January for precious metals in two decades, investors still have a $102 billion bet on higher prices, hoarding more gold than all but four central banks and more silver than the U.S. can mine in almost 12 years.
The five analysts ranked by Bloomberg as the most accurate over two years expect silver to rise as much as 23 percent before the end of 2011 and gold 20 percent, the median of their estimates show. UBS AG predicts the strongest industrial demand for silver since at least 1990 and the second-highest sales of exchange-traded gold products on record.
Whitney Whips Up Wall Street as Bear in Heels
Commentary by Alice Schroeder
Feb. 7 (Bloomberg) -- Meredith Whitney has done it again, turning Wall Street against her with a contrarian call, this time on municipal bonds.
The analyst's prediction for "50 to 100 sizable defaults" of U.S. municipal bonds totaling "hundreds of billions of dollars" could become her Big Wrong Call. If so, it will knock Whitney from a pedestal, to the satisfaction of her many critics.
She has staked her credibility on this forecast, broadcast Dec. 20 in an interview on CBS's "60 Minutes." Her summary of a 600-page report to clients prompted a National League of Cities analyst to say she possessed a "stunning lack of understanding." Other critics called her prediction "ludicrous," "irresponsible," "damaging," and "overreaching."
A Seer on Banks Raises a Furor on Bonds
By NELSON D. SCHWARTZ - NYTimes.com
If one stock-picker emerged intact from the wreckage of the financial crisis, it was Meredith Whitney. With a prescient warning about bank stocks in 2007 - as well as a gift for the perfect sound bite - she became a media darling, celebrated in a Fortune cover article and in frequent television appearances as a market seer.
Until now, that is. These days, Ms. Whitney, 41, finds herself pilloried in the news media and by colleagues for predicting a calamity in municipal bonds. Critics say the call is overstated, but it has alarmed investors in that usually sleepy market.
Treasury 2- to 30-Year Spread Narrows Before Fed Debt Buyback
By Cordell Eddings
Feb. 7 (Bloomberg) -- The difference in yield between 2- and 30-year Treasuries shrank by the most in four days as the Federal Reserve prepares to buy longer-term debt tomorrow, the second of three bond purchases by the central bank this week.
The Treasury 30-year bond yield declined for first time in six days as the Fed prepared to purchase up to $2.5 billion in Treasuries maturing between August 2028 and November 2040 as part of its plan to bolster the economy. The yield on 10-year securities earlier reached a nine-month high following the Feb. 4 report that showed U.S. unemployment fell to 9 percent in January. Treasury plans to sell $72 billion in notes and bonds during the next three days.
Fed Spends 40% on Benchmarks as Newest Prove Cheapest
By Cordell Eddings and Daniel Kruger
Feb. 7 (Bloomberg) -- The Federal Reserve's Treasury purchases already have succeeded in driving investors to junk bonds and stocks. Now, policy makers are focusing on benchmark government securities, helping contain rising yields that set rates on everything from corporate debt to mortgages.
More than 40 percent of the government bonds the Fed bought in January for its so-called quantitative easing were auctioned in the previous 90 days, up from 20 percent in December and 15 percent in November, according to Bank of America Merrill Lynch. The central bank is concentrating on newer securities as its $600 billion program depletes primary dealers' holdings of Treasuries to the lowest since November 2009.
Bernanke Bets Commodities Won't Fan Inflation Concern
By Scott Lanman and Simon Kennedy
Feb. 7 (Bloomberg) -- Investors are betting with Ben S. Bernanke that surging food and energy prices won't accelerate U.S. inflation, allowing him to maintain easy money.
Their forecast shows in gauges of long-term price expectations, including the difference between 10-year nominal and inflation-indexed Treasury bonds, which fell to 2.36 percentage points Feb. 4 from 2.41 points Jan. 5. While pressure from commodity costs may cause a spike this year to what Pacific Investment Management Co.'s Anthony Crescenzi considers a warning threshold of 2.75 points, the spread won't persist there or higher without strong job growth, Crescenzi said.
Are Toxic Assets Still a Threat to Financial Stability?
By Daniel Indiviglio - The Atlantic.com
Remember those toxic assets that President Bush explained during a special evening address had posed a threat to the entire U.S. economy back in the fall of 2008? The bailout was originally designed to relieve banks of those assets, with the government planning to buy a $700 billion chunk of them. Once Treasury Secretary Henry Paulson realized how difficult that would be, however, he decided it would just be easier to give banks lots of money instead. The big banks have now mostly recovered, but many of those toxic assets remain on their balance sheets. Do they still pose a threat?
A Wall Street Journal Article today by Michael Rapoport examines the toxic assets still outstanding. First, there are some unrealized losses banks have already associated with such assets:
In part due to those bad assets, the top 10 U.S.-owned banks had $13.8 billion in "unrealized losses" that have lasted at least a year in their investment portfolios as of Sept. 30, according to a Wall Street Journal analysis. Such losses are baked into banks' book value, but don't get counted against earnings as long as the banks believe the investments will later rebound. If those losses were assessed against earnings, it would have reduced the banks' pretax income for the first nine months of 2010 by 21%, according to the Journal analysis.
4 Ways Barack Obama And The Federal Reserve Are Destroying Our Long-Term Economic Future For Their Short-Term Gain
EndOfTheAmericanDream.com
Many people have been stumped as they have attempted to find a coherent theme in Barack Obama's economic policies. But the truth is that what the Obama administration is trying to do is not that difficult to figure out. Just like so many other previous administrations, the Obama administration is motivated by self-preservation. All of Barack Obama's economic policies are designed to produce a short-term economic burst that will help him win the next election in 2012, and the Federal Reserve has been cooperating every step of the way. Perhaps the Federal Reserve is motivated by self-preservation as well. The American people are becoming extremely disenfranchised with the Federal Reserve, and so those inside the Fed likely realize that they better get the economy on track or face even more scrutiny. In any event, Obama and the Fed are working together to do whatever they can to improve the short-term economic situation. Unfortunately, everything that they are doing is making our long-term economic problems even worse. But Barack Obama and the Federal Reserve are not really concerned with what is going to happen down the road. What the Obama administration and the Federal Reserve are concerned about is protecting their rear ends in the here and now.
ECB Will Act Strongly Against Second-Round Effects, Mersch Says
By Stephanie Bodoni and Gabi Thesing
Feb. 8 (Bloomberg) -- The European Central Bank will raise rates if the increase in inflation is not temporary and fuels second-round effects, Governing Council member Yves Mersch said.
"At the beginning of March you'll have our first forecast for 2013 and if it's true that what we see at the moment is only a temporary increase with a retreat at the end of the year below 2 percent, there's no danger," Mersch said in Luxembourg late yesterday. "However, there would have to be a rigorous intervention by the monetary authorities if across the second- round effects there's the risk that this increase transforms into a plateau."
Governors from both parties plan painful cuts amid budget crises across the U.S.
By Michael A. Fletcher - Washington Post
Faced with the most severe budget crisis since the Great Depression, governors across the ideological spectrum are embracing the politics of austerity in a desperate effort to balance the books.
Democratic and Republican governors alike are sounding similar themes, as they slash once sacrosanct programs such as those covering education, health care for the poor and aid to hard-pressed local governments. Cutbacks on the state and local levels are expected to be a major drag on the economic recovery.
An ObamaCare Appeal From the States Twenty-one governors representing more than 115 million Americans have written to Kathleen Sebelius asking for more flexibility on health-care reform.
By MITCH DANIELS - WSJ.com
Unless you're in favor of a fully nationalized health-care system, the president's health-care reform law is a massive mistake. It will amplify all the big drivers of overconsumption and excessive pricing: "Why not, it's free?" reimbursement; "The more I do, the more I get" provider payment; and all the defensive medicine the trial bar's ingenuity can generate.
All claims made for it were false. It will add trillions to the federal deficit. It will lead to a de facto government takeover of health care faster than most people realize, and as millions of Americans are added to the Medicaid rolls and millions more employees (including, watch for this, workers of bankrupt state governments) are dumped into the new exchanges.
Many of us governors are hoping for either a judicial or legislative rescue from this impending disaster, and recent court decisions suggest there's a chance of that. But we can't count on a miracle - that's only permitted in Washington policy making. We have no choice but to prepare for the very real possibility that the law takes effect in 2014.
Rising Rents Could Be the Spark That Reignites Inflation
By CHARLES WALLACE - DailyFinance.com
Vacancy rates have been declining at apartment buildings across the U.S., sending rents sharply higher. And those higher rents could translate into a doubling of the inflation rate this year.
According to the U.S. Census Bureau, vacancy rates at residential buildings fell to 9.4% in the fourth quarter of 2010, down from 10.3% in the third quarter. "That was basically one of the largest quarterly declines ever," says Joseph LaVorgna, chief U.S. economist for Deutsche Bank.
For the full year, the decline amounted to 1.3%, the second-largest on record. "In the grand scheme of things, 9.4% is still relatively high, but you have to go back to 2003 to find where we were lower," LaVorgna says.
White House Worried About Possible Explosion in FHA Business?
NationalMortgageNews.com
The confluence of GSE reforms and risk retention rules is forcing the Obama administration to consider ways to clamp down on the Federal Housing Administration program to prevent an explosion in its insurance market share.
Next Monday, the White House is slated to release its budget for fiscal year 2012 along with its plan for restructuring Fannie Mae and Freddie Mac and reducing the government's role in the mortgage market.
The budget document is expected to include proposals to restrict the FHA single-family program, possibly through higher insurance premiums, larger downpayments, and maybe even lower loan limits, according to sources.
Slowdown in loan mods means foreclosures unavoidable
TheTruthAboutMortgage.com
A slowdown in loan modifications means loan servicers will actually have to begin foreclosing on the many borrowers unable to keep up with their mortgage payments, instead of kicking the can down the road, according to a new report released today by Fitch Ratings.
Last month, just 36,500 loan modifications were completed, well below the peak of 86,500 back in April 2009.
And while efforts by both Hope Now and HAMP resulted in about 1.75 million modifications in 2010, foreclosure sales exceeded the one million mark.
On the surface it sounds pretty good, but you have to take into the account the many loans hundreds of days behind on payments, but not yet foreclosed.
Homeowners face 'new normal' in housing bust
By Julie Schmit, USA TODAY
MERCED, Calif. - Life has changed in ways big and small in this central California county, which is still trapped in the wreckage of a housing boom that went bust five years ago.
The median home price, $116,000, is down 68% from its peak in 2006. Three of five homeowners with a mortgage here owe more on their loans than their houses are worth, compared with about one in five nationally.
Socked by a sharp loss of property and sales tax revenue, Merced County and its cities have slashed budgets, workers and services. The grass is being mowed less often in city parks. A senior center is open fewer hours.
Find A Job? Good Luck In This Economy 10 Reasons Why The Latest Unemployment Numbers
Are No Reason To Cheer
TheEconomicCollapseBlog.com
The U.S. government is telling us that the unemployment rate fell all the way down to 9.0% in January. Should we all cheer? Is it now going to be a lot easier to find a job? Has the economy finally turned around? Are happy days here again? Well, it is a good thing to have a positive attitude, but the truth is that there is just not much to cheer about when you take a closer look at the recent unemployment numbers. First of all, the U.S. economy only added 36,000 jobs in January. Economists had been expecting an increase of about 145,000 jobs, and an increase of 150,000 jobs per month is necessary just to keep up with population growth. So why did the unemployment rate go down? Well, the government says that over half a million Americans suddenly dropped out of the labor force in January. That doesn't make a lot of sense, but this is how the government calculates their numbers. So what happened to those 500,000 Americans? Did they all win the lottery? Have they all become independently wealthy? Did they all die? No, the vast majority of them are still around and the vast majority of them still desperately need jobs. It is just that the government does not count them as "looking for work" anymore.
Ron Paul to Ask Fed Why After Trillions in Free Money
Unemployment Is Still Sky High
by Tyler Durden ZeroHedge via LewRockwell.com
While everyone is relishing the Fed's third and only mandate these days, namely to send the Russell 2000 to 36,000 and cotton limit up to infinity and beyond, while everyone else is terrified to short stock in advance of what increasingly appears like near certain additional quantitative easing, congressman Ron Paul has announced that the first Monetary Policy subcommittee meeting will focus on one of those two now forgotten Fed mandates, that of creating jobs.
Of course, the answer to all of these problems is simple: no debt ceiling raise. If the Fed can't monetize any more debt and make the Primary Dealers ever richer (now that the PD ranks have just been expanded from 18 to 20 to include SocGen and derivative (!) trader MF Global, and its CEO Jon Corzine) from commissions on indirect debt monetization, its power is gone. But that will mean doing something far less theatrical than a few hearings, and far more responsible: such as preventing rampaging inflation across America.
Ashley's Tragic Story: A Heartbreaking Example Of How The Economic Collapse Of America Is Destroying Lives
TheEconomicCollapseBlog.com
What you are about to read is perhaps the most heartbreaking story that I have ever come across. It is so tragic that I am not even quite sure how to introduce it. Some time ago, a reader named Ashley sent me an email that described the nightmare that she has been living through over the past year. Ashley's email was very different from the vast majority of emails I usually receive, and I wrote her back right away and asked her some questions. One of the most important questions I asked was whether or not she really wanted me to share her story with the public. Privacy is such a precious thing, and I wanted her to understand that if I shared her story that thousands upon thousands of people would end up seeing it. After considering what I had to say, Ashley said that she was 100% sure that I should share her story because she felt that it could really help some people.
California is putting disability benefits on debit cards instead of checks
By Marc Lifsher - LATimes.com
Checks are no longer in the mail for about 10,000 Californians a day who are getting new state-issued Visa debit cards to access disability benefits.
The California Employment Development Department expects to have the cards in the hands of 400,000 people by March. The cards will give recipients faster, more secure access to their cash at Bank of America network ATMs.
The switch enables recipients to have their benefits directly deposited into bank accounts and to avoid check-cashing fees. There also are no fees charged for using network ATMs and for making up to two transactions weekly with out-of-network machines.
Consumer Credit in U.S. Increases for Third Month
By Vincent Del Giudice and Shobhana Chandra
Feb. 7 (Bloomberg) -- U.S. consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved.
Credit rose by $6.1 billion to $2.41 trillion after increasing a revised $2.02 billion in November, according to Federal Reserve data issued today in Washington. Economists projected a $2.4 billion increase, according to the median forecast in a Bloomberg News survey. Borrowing remains below the peak of $2.58 trillion in July 2008. For all of 2010, credit contracted.
My credit card had a 79.9% APR
By Blake Ellis
NEW YORK (CNNMoney) -- Toni Riss had a credit card with a 79.9% interest rate.
The 58-year-old woman from Texas thought she struck gold when she found the First Premier card, which is aimed specifically at consumers with poor credit.
"I had an accident on a motorcycle, went through bankruptcy to pay for medical expenses and my credit went to hell in a hand basket, so I was looking for credit cards for people with bad credit" Riss said.
They granted her a card with a $300 limit -- typical for new customers -- and a starting rate of 29.9%, which Riss said she considered decent given her credit score.
Patriot Act extension runs into conservative opposition 'Tea party' adherents in the House, like civil libertarians, chafe at parts of the anti-terrorism law that reach into people's privacy.
By Lisa Mascaro, Washington Bureau - LATimes.com
Reporting from Washington - A House GOP push to permanently extend expiring provisions of the Patriot Act is running into opposition from conservative and "tea party"-inspired lawmakers wary of the law's reach into private affairs.
Enacted after the Sept. 11, 2001, terrorist attacks, the law makes it easier for federal authorities to conduct surveillance on terrorism suspects. Civil libertarians have long fought the measure, often drawing support from Democratic allies in Congress.
But as the Republican-led House prepares to vote Tuesday for a short-term extension of provisions expiring at the end of this month, some rank-and-file Republicans are signaling they will resist efforts later this year to make the law permanent.
FCC: Presidential emergency alerts to be tested
By Suzanne Kubota - FederalNewsRadio.com
Everybody has heard the national Emergency Alert System (EAS). Those familiar "duck calls" that reassure listeners "THIS is a test...this is ONLY a test..."
The FCC is planning an upgrade to the tests by including presidential announcements in the system.
Lisa Fowlkes, deputy chief of the Public Safety and Homeland Security Bureau of the FCC, explained to the Federal Drive the Presidential Alert isn't new.
"The primary goal is to provide the President with a mechanism to communicate with the American public during times of national emergency," said Fowlkes. The change, she said, is that prior to last week's order there was no rule in place to call for or allow a test from top to bottom.
DHS Seizes Websites for Merely LINKING to Copyrighted Material
Eric Blair - Activist Post
Apparently the Department of Homeland Security is now authorized to rewrite and enforce copyright infringement laws. In a stunning precedent, the recent round of domain seizures to shut down websites that allowed illegal streaming of the Super Bowl also included a few other websites that were seized simply for linking to infringing content.
Mike Masnick of TechDirt, who received and published a DHS seizure affidavit, had this to say in a must-read article:
.... the affidavit itself is chock full of legal and technical errors, compounded by assertions-as-facts that seem to have little basis in reality. This is immensely troubling, especially given that the specific legal issues here are hardly settled law, and Homeland Security seems to be acting as if these cases are no brainers, allowing them to flat out seize domains, even when those websites have been declared perfectly legal in their home countries.
Pole Shift Threatens To Cause Weather Chaos Will paying billions of dollars in carbon taxes to Al Gore and his cronies solve the problem?
Paul Joseph Watson - Prison Planet.com
According to some experts, the world's weather is about to get even more chaotic as a result of natural climate change that we can do absolutely nothing to prevent - and even though global warming alarmists may exploit the consequences to advance their own political agenda, paying a carbon tax to Al Gore will not lessen the impact of a potentially catastrophic magnetic polar shift.
In layman's terms, the most apocalyptic outcome of a polar shift would come as a result of the the poles flipping, with the south pole becoming the north pole and vice versa. The good news is that on average this only happens every half a million years, but the bad news is that it hasn't happened in roughly 780,000 years, with some experts warning that the planet is overdue. Pole flips have been known to happen only 50,00 years apart.
Online Courses, Still Lacking That Third Dimension
By RANDALL STROSS - NYTimes.com
WHEN colleges and universities finally decide to make full use of the Internet, most professors will lose their jobs.
That includes me. I'm not worried, though, at least for the moment. Amid acute budget crises, state universities like mine can't afford to take that very big step - adopting the technology that renders human instructors obsolete.
I began teaching classes online 10 years ago, but the term "online" is misleading. What I really mean is that I teach a hybrid course: part software, part hovering human. A genuine online course would be nothing but the software and would handle all the grading, too. No living, breathing instructor would be needed for oversight.
"We should focus on having at least one great course online for each subject rather than lots of mediocre courses," Bill Gates suggested in his 2010 annual letter for the Bill & Melinda Gates Foundation.
AOL Makes an Expensive Bet With Huffington Post Deal
By EMILY STEEL And RUSSELL ADAMS - WSJ.com
AOL Inc.'s acquisition of the Huffington Post is the latest step in its uphill quest to eke profits from free content on the Internet and to make the company relevant to users and advertisers again.
AOL is paying $315 million to buy the nearly six-year-old Huffington Post, a rich price to hitch itself to a news and opinion website and its outspoken celebrity co-founder and editor-in-chief, Arianna Huffington. While the site was launched as a counterweight to conservative sites like the Drudge Report, in recent years it has expanded into topics like sports, entertainment, sex and self-help.
The deal installs the 60-year-old Ms. Huffington as president and editor-in-chief of a new group inside AOL, overseeing the roughly 700 editorial employees across both the Huffington Post and AOL, including AOL's tech blogs Engadget and TechCrunch.
Ex-Dow Scientist Is Convicted of Selling Secrets in China
By CHRISTOPHER DREW - NYTimes.com
A jury in Baton Rouge, La., on Monday found a former Dow Chemical scientist guilty of conspiring to steal company secrets and sell them to firms in China, the Justice Department said.
Evidence at the three-week trial showed that the scientist, Liu Wen, 74, also paid a $50,000 bribe to a Dow employee to supply materials about how the company made a polymer used in automotive hoses, jackets for electrical cables and vinyl siding.
The conviction illustrates what federal authorities have described as a growing threat in the competition with China for an economic edge. As nations like China broaden efforts to obtain technology, they have increasingly been able to buy secrets from current and former insiders at big American companies.
Sudan under pressure after south secedes
By Ashish Kumar Sen - The Washington Times
A decision by an overwhelming majority of southerners to secede from Sudan likely will put new pressure on President Omar al-Bashir's fragile regime in a region rocked by anti-government protests.
The Obama administration, worried about the stability of the regime, is closely monitoring Khartoum's reaction to the outcome of the secession vote, anti-government protests and fighting in the western province of Darfur.
A senior U.S. official, who spoke on the condition of anonymity because of the sensitive nature of the matter, said the Obama administration has been very candid with Lt. Gen. al-Bashir's government about the need to act with restraint.
Regulators Shut 3 Small Banks; 14 Failures in 2011
Regulators shut 3 small banks in Ga., Ill.; makes 14 bank failures this year nationwide
BY MARCY GORDON AP BUSINESS WRITER - ABCNews.com
Regulators on Friday shut down three small banks in Georgia and Illinois, bringing to 14 the number of bank failures in 2011 following last year's tally of 157 amid the sagging economy and mounting bad loans.
The Federal Deposit Insurance Corp. seized American Trust Bank, based in Roswell, Ga., with $238.2 million in assets and $222.2 million in deposits; North Georgia Bank of Watkinsville, Ga., with $153.2 million in assets and $139.7 million in deposits; and Chicago-based Community First Bank, with $51.1 million in assets and $49.5 million in deposits.
Egypt: Preview of America in 2015
NationalInflationAssociation.com
The rioting and looting currently taking place in Egypt is primarily a result of massive food inflation and shows what all major cities in the United States will likely look like come year 2015 due to the Federal Reserve's zero percent interest rates and quantitative easing to infinity. On December 16th, 2009, NIA named Time Magazine's 2009 'Person of the Year' Ben Bernanke our 'Villain of the Year', saying he created "unprecedented amounts of inflation in unprecedented ways" and "When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke."
What started out a few weeks ago as protests in Algeria with citizens chanting "Bring Us Sugar!" and five citizens being killed, quickly spread to civil unrest in Tunisia which saw 14 more civilian deaths, and has now spread to riots in Egypt where 300 Egyptian citizens have been killed. Food inflation in Egypt has reached 20% and citizens in the nation already spend about 40% of their monthly expenditures on food. Americans for decades have been blessed with cheap food, spending only 13% of their expenditures on food, but this is about to change.
Gerald Celente - Civil Unrest coming to AMERICA!!!!!
Albright disputes Egypt 'chaos scenario'
By Joseph Weber - The Washington Times
Madeleine K. Albright, a former secretary of state and U.N. ambassador, on Sunday disagreed with the so-called "chaos scenario" in which the street-level, political revolution in Egypt would only get worse if President Hosni Mubarak resigns.
"There are a variety of other structures in place," Mrs. Albright, a Clinton administration appointee, said on CNN's "State of the Union."
She said longtime leaders such as Mr. Mubarak have a hard time realizing "your time is up."
Egyptian residents have held sometimes peaceful and sometimes violent protests in the street of Cario for 13 days, calling for a more democratic government and better economic opportunities.
Future in Arab region up for grabs
By David Gardner, in London - FT.com
After the US-backed jihad against the Soviet Union in Afghanistan during the last decade of the cold war, thousands of Arab volunteers, recruited under indulgent western eyes, returned home fired with belief that if they could triumph against a superpower they could surely puncture the inflated autocrats dictating life in their own countries. It turned out these zealots could not.
Their insurgencies in Algeria, Saudi Arabia and Egypt all failed. Ayman al-Zawahiri, leader of Egypt's Islamic Jihad, the group that assassinated Anwar Sadat, Hosni Mubarak's predecessor, went off to join Osama bin Laden and al-Qaeda.
Pentagon moving warships, preparing for possible evacuations
Staff - LATimes.com
The Pentagon is moving U.S. warships and other military assets to make sure it is prepared in case evacuation of U.S. citizens from Egypt becomes necessary, officials said Friday.
The Kearsarge, an amphibious assault ship carrying 700 to 800 troops from the 26th Marine Expeditionary Unit, and the Ponce have arrived in the Red Sea, putting them off Egypt's shores in case the situation worsens.
Pentagon officials emphasized that military intervention in Egypt was not being contemplated and that the warships were being moved only for contingency purposes in case evacuations became necessary.
Muslim Brotherhood joins political mainstream in Egypt
ATUL ANEJA - TheHindu.com
After being shunned for decades, the Muslim Brotherhood appears set to acquire official legitimacy in Egypt with its representatives on Sunday holding talks with the government on defining the ground rules for a political transition, which has become necessary in the wake of a pro-democracy revolt.
Ahead of talks with Vice-President Omar Suleiman, who has emerged as the face of the Mubarak government in its interaction with the opposition, the Muslim Brotherhood signalled that Sunday's talks could be exploratory. "We decided to take part in a round of negotiations in order to test the officials' seriousness about people's demands and their readiness to respond," the group's Supreme Guide, Mohamed Badie, said in a statement.
Mohamed ElBaradei says he won't negotiate until president steps down
Staff Writers - LATimes.com
Nobel Peace laureate Mohamed ElBaradei said Sunday that he will not negotiate with the Egyptian government until President Hosni Mubarak steps down.
"The whole idea was to move that regime to a new regime," ElBaradei said on CNN's "Fareed Zakaria GPS." "Mubarak continues to be a symbol of that old regime, and I will not give any legitimacy to that existing regime."
ElBaradei's comments came as Egyptian Vice President Omar Suleiman met in Cairo with some opposition figures, including members of the banned Muslim Brotherhood and a representative of ElBaradei's National Assn. for Change. Mubarak has said that he plans to remain in office until elections in September but that he will not run again.
ElBaradei, the former director of the International Atomic Energy Agency who has emerged as a figurehead for the country's fractured opposition, said the transition process should not be managed solely by the outgoing regime.
Egypt's regime offers new concessions to opposition
By Maggie Michael and Sarah El Deeb - Associated Press - WashingtonTimes.com
CAIRO (AP) - Egypt's vice president met a broad representation of major opposition groups for the first time Sunday and offered new concessions including freedom of the press, release of those detained since anti-government protests began nearly two weeks ago and the eventual lifting of the country's hated emergency laws.
Two of the groups that attended the meeting said this was only a first step in a dialogue that has yet to meet their central demand - the immediate ouster of longtime President Hosni Mubarak.
"People still want the president to step down," said Mostafa al-Naggar, a protest organizer and supporter of Mohamed ElBaradei, a Nobel Peace laureate and one of the country's leading democracy advocates.
Muslim Brotherhood cagey on government shift
Backs ElBaradi now, but mum about future
By Ashish Kumar Sen - The Washington Times
The Muslim Brotherhood is seeking to make the most of its position as Egypt's largest and best-organized opposition group after initially declining to participate in the pro-democracy protests that have swept the nation.
The shadowy group of Arab intellectuals and professionals - which officially is banned by Egypt's secular government - has backed Nobel laureate Mohamed ElBaradei as an interim national leader in transition talks with the government.
In a phone interview from Cairo with The Washington Times last week, Essam el-Erian, a senior Muslim Brotherhood leader, said there has been no shift in his group's support for Mr. ElBaradei. However, he declined to say whether it would support Mr. ElBaradei in a presidentia election.
Clinton cautiously welcomes Brotherhood talks
AFP - Breitbart.com
US Secretary of State Hillary Clinton cautiously welcomed Sunday the Muslim Brotherhood's involvement in political dialogue in Egypt, saying Washington would "wait and see" how talks develop.
"Today we learned the Muslim Brotherhood decided to participate, which suggests they at least are now involved in the dialogue that we have encouraged," Clinton told National Public Radio (NPR) from Germany.
"We're going to wait and see how this develops, but we've been very clear about what we expect."
Vice President Omar Suleiman met on Sunday with opposition groups including the Muslim Brotherhood, a well-organised Islamist movement that has long been officially banned from Egyptian politics, the official MENA news agency said.
What if Mubarak Holds On? Threatened and isolated, Egypt could become a dangerous pariah
By Max Fisher - TheAtlantic.com
Egyptian President Hosni Mubarak, whose overthrow the U.S. began actively seeking exactly one week after deploying Vice President Joe Biden to publicly defend him, is not the first national leader to lose U.S. patronage. Philippines strongman Ferdinand Marcos alienated Jimmy Carter and then Ronald Reagan with years of brutal rule. Indonesia's Suharto, Zaire's Mobutu Seko, and others found that the Americans stopped returning their calls once there was no more Soviet Union against which they could act as bulwarks. Perhaps most famously, South Vietnam's Ngo Dinh Diem ended up in the back of a military personnel carrier where he and his brother were shot, stabbed, and photographed as part of a sudden and U.S.-approved military coup. In all of these cases, the client leaders fell without their patron. But Mubarak, of whose rule U.S. support has been a pillar for 29 years, could yet cling to power. If he does, it's impossible to know how he will behave, but the rapidly changing internal and external pressures are likely to transform his foreign and domestic policies, and probably not for the better.
Egyptians Line Up for Cash as Banks Open, Pound Falls
By Ahmed A Namatalla and Alaa Shahine - BusinessWeek.com
Feb. 6 (Bloomberg) -- Hundreds of Egyptians queued outside banks to withdraw funds as lenders opened for the first time in more than a week amid protests demanding the ouster of President Hosni Mubarak. The pound dropped to the lowest level since 2005.
At a Cairo-based branch of Commercial International Bank Egypt SAE, the nation's biggest publicly-traded lender, one man stood at the main door taking names of customers. "Banks need to open more branches," Mahmoud Eliwa, a 68-year-old retiree who wanted to withdraw 5,000 pounds, said in an interview outside the bank. Eliwa left after learning he needed to wait for about 100 people before him.
Is The Egyptian "Revolution Of Attrition" Ending?
by Tyler Durden - ZeroHedge.com
As we noted yesterday, during what we called Cairo's D-Day demonstrations, Friday may well have been the last chance for Egypt to push through with a resolute attempt to finally overthrow Mubarak. Because now the doubts set in... and the desire to get back to a normal life. Sky News reports, "As anti-Mubarak demonstrators continue their protests in Cairo's Tahrir Square, away from the area there are signs of growing divisions among their ranks." In this revolution of attrition, Mobarak may have been well aware of the time value of liberation enthusiasm. And now, two weeks after the start, people have realized they also have to eat (even if wheat has gone up well over 20% in the meantime).
Mubarak's net worth estimated at USD 40 to 70 billion
PTI - TheHindu.com
Egypt's embattled President Hosni Mubarak's and his family's net worth is estimated to be between U.S. dollars 40 and 70 billion, a media report said.
The wealth of the Egypt's first family was built largely from military contracts during his days as an air force officer; Mr. Mubarak eventually diversified his investments through his family when he became President in 1981, the ABC News quoted experts as saying.
The family's net worth now ranges from U.S. dollars 40 to 70 billion, by some estimates, the report said.
Amaney Jamal, a political science professor at Princeton, said those estimates are comparable with the vast wealth of leaders in other Gulf countries.
China gold buying "stuns" precious metals traders - demand unbelievable The volume of Chinese citizens' purchasing of gold running up to the start of the Chinese New Year has completely stunned traders leading to big price premiums in Shanghai.
Author: Lawrence Williams - MineWeb.com
LONDON -Consider the following paragraph from London's highly respected Financial Times - a publication not usually prone to hyperbole: Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the past month. "The demand is unbelievable. The size of the orders is enormous," said one senior banker, who estimated that China had imported about 200 tonnes in three months.
Now China has already reported a five-fold increase in gold imports over the first 10 months of 2010 and if the estimate quoted above is correct the country may well be seen to have imported upwards of 320 tonnes in the full year which brings the total to within a hairsbreadth of Indian imports - and India has for many years been the world's largest importer of gold by a considerable margin. If Chinese gold purchasing momentum continues at anywhere near close to current levels it will soar past India as the world's largest importer of the yellow metal this year.
Jim Rogers Tells CNBC To Change Its Name To CommoditesNBC Sees Oil At $150, Is Short Nasdaq ETFs,
Expects More Governments To Collapse
by Tyler Durden - ZeroHedge.com
Jim Rogers, in his latest interview, cuts right to the chase: "I don't own many equities, because I don't know what is going to happen in the world economy. I expect more currency turmoil, more social unrest, more governments collapsing. So I am investing in currencies and commodities rather than stocks." Pretty much like everyone else, as we have been suggesting for quite a while. Rogers snaps at the trademark CNBC question of what he would be investing in: "I have been explaining to everybody on CNBC for a year and half or two now that food prices are going to go through the roof, they're going to explode. We have serious shortage of everything developing, including shortages of farmers... The average age of farmers in one major agricultural state is 58 years old. In 10 years it will be 68 years old. In parts of Japan they have no farmers... It takes 7 years for a coffee tree to mature. Orange trees, palm trees: you don't just suddenly snap your fingers and suddenly get some more palm oil. All of this takes time." So all those who believe that the surge in people rushing to fill the ag arbitrage holes will produce immediate results, may need to wait 3-7 years, dependant on access to manure.
The Great Global Debt Prison
By Giordano Bruno - Neithercorp Press
Tense and terrible times inevitably summon an odd coupling of two very different and difficult human conditions; honesty, and brutality. Certain painful truths are revealed, and often, a palpable fury erupts. Being that times today are particularly tense, and on the verge of being spectacularly terrible, perhaps we should embrace both conditions in a constructive manner, and become brutally honest with ourselves. This begins by admitting to that which most ails us. It begins by admitting how far we have fallen...
Our economy, our culture, our entire world, is built upon debt. No one ever asked us if thatÕs how we wanted it, it is simply how the system was designed when we came into it. Many of us have lived our entire lives under the assumption that debt is a necessary function of daily commerce and a valuable driver of successful society. Most households in America operate at a steep loss, trapped in constantly building cycles of liability and interest. There are even widely held schools of economic thought that are centered completely on the production and utilization of nothing but debt. Only recently have many people begun to ask themselves what the tangible benefits are (if any) in being dependent on debt based finance.
Bank of England chief Mervyn King: standard of living to plunge at fastest rate since 1920s Households face the most dramatic squeeze in living standards since the 1920s, the Governor of the Bank of England warned, as he reacted to the shock disclosure that the economy was shrinking again.
By Robert Winnett - Telegraph.co.uk
Families will see their disposable income eaten up as they "pay the inevitable price" for the financial crisis, Mervyn King warned.
With wages failing to keep pace with rising inflation, workers' take- home pay will end the year worth the same as in 2005 - the most prolonged fall in living standards for more than 80 years, he claimed.
Mr King issued the warning in a speech in Newcastle upon Tyne after official figures showed that gross domestic product fell by 0.5 per cent during the final three months last year. The Government blamed the unexpected reduction - the first since the third quarter of 2009 - on the freezing weather that paralysed much of the country last month.
Middle class bears the brunt of rise in inflation The typical middle-class family is bearing the brunt of painful rises in the official inflation rate, according to new analysis which underlines the pressure on Britain's so-called "squeezed middle".
By Emma Rowley - Telegraph.co.uk
The Government's measure of inflation, the Consumer Prices Index (CPI), hit an eight-month high of 3.7pc in December and is expected to pass 4pc in the next set of figures.
However, the "real" rate of CPI inflation for an average middle-class household is already significantly higher at 4.5pc, according to a study for The Sunday Telegraph by Capital Economics. More than double the Bank of England's 2pc target, the figure represents the fastest pace of price rises faced by many of the households analysed in the research.
Bernanke's Response To Commodity Price Inflation Accusation
by David Beckworth - OilPrice.com
Bernanke responds today to the accusation that the commodity price boom is being caused by U.S. monetary policy:
Supply and demand abroad for commodities, not U.S. monetary policy, are causing higher food and energy prices rattling much of the world, Federal Reserve Chairman Ben Bernanke said Thursday. "The most important development globally is that the world is growing more quickly, particularly in emerging markets," Bernanke said in response to a question after his speech at the National Press Club... "I think it's entirely unfair to attribute excess demand in emerging markets to U.S. monetary policy," Bernanke said. Those nations can use their own monetary policy and adjust exchange rates to deal with their inflation problems, he said. "It''s really up to emerging markets to find appropriate tools to balance their own growth."
Max Keiser at The Sound Money Conference Jan 27, 2011
Cheviot's Sound Money Conference (video of entire conference)
Thursday the 27th January 2011
London's historic Guildhall.
Hosted by: Dominic Frisby Panellists: Max Keiser, Ben Davies, James Turk, David Morgan, Richard Cragg, Sandeep Jaitly
Taleb Advises 'First' Avoid Treasuries, Then Dollar
By Paul Abelsky and Emma O'Brien
Feb. 3 (Bloomberg) -- Nassim Taleb, author of "The Black Swan," said the "first thing" investors should avoid is U.S. Treasuries and the second is the dollar.
Taleb, a principal at Universa Investments LP whose 2007 bestselling book argued that history is littered with rare events that can't be predicted by trends, also said he would rather hold euros than dollars, even as the regio's sovereign- debt crisis persists. "Euros have Germany, the dollar has nothing," he said at a conference in Moscow.
Smashing Myths and Restoring Sound Money
Thomas E. Woods, Jr. - December 7, 2009
Inflation 'Round the World
By Joel Bowman - The DailyReckoning.com
02/04/11 Buenos Aires, Argentina - Faithful and unfaithful readers alike will have noticed a recurring theme in our recent reckonings. We refer, of course, to inflation; that insidious, noxious tax which appears to be gushing out of every economic orifice in the land, but that, somehow, fails to register as even a drip on the governmentÕs official inflation-o-meter. Curious, no?
Regular reckoner, Chris Mayer, identified inflation as the "wrecking ball" of 2011 in his column "Inflation's First Phase". Eric Fry addressed it in both "When Stock Market Rallies Validate Effective Monetary Policy" and "Tracing the Fed's Vital Role in the Decline of the US Dollar". And our Reckon-in-Chief, Bill Bonner, touches on it in some fashion, on most days.
In fact, most people in possession of at least one of the five basic human senses seems to see, feel, hear, taste or smell inflation's foul presence. Which means that those trained specifically to keep an eye (ear, nose, etc.) out for it - and who so adamantly deny its existence Ð are either blessed with a sixth "masking" sense to which the rest of us are not privy... or that they are simply senseless morons, blinded by the light of their own academic brilliance.
Facing budget cuts, SEC chief says agency is already underfunded New mandates by the financial reform law will only increase the strain, Mary Schapiro warns.
By Jim Puzzanghera, Los Angeles Times
Reporting from Washington - Securities and Exchange Commission Chairwoman Mary Schapiro warned that her agency doesn't have enough money to police Wall Street adequately, let alone draft dozens of new regulations required under the financial reform law.
And that's before congressional Republicans look to cut the SEC's budget further.
"It is a strain that is already having an impact on our core mission - separate and apart from the new responsibilities that Congress gave us to regulate derivatives, hedge fund advisors and credit-rating agencies," Schapiro said at a conference Friday in Washington.
Long Bonds Break To The Downside
By: Dan Norcini- JSMineSet.com
The big development in today's market session was the breakdown in the long bond. As you can see from the chart below bonds have been carving out a 5 week old sideways trading pattern bounded by approximately 122 on the topside and 119 on the downside. All sharp sell offs down to the latter level had met with buying that brought them back up to the top of the range where sellers once again surfaced. This impasse continued for more than a month with buyers looking to the Fed's entrance into the market during its timed purchases of longer dated Treasuries in association with its QE2 program. Sellers were looking at surging commodity prices and other signs of upticks in manufacturing activity and retails sales numbers which suggested that the constant pump priming was producing some impact on the overall sluggish economy.
China not currency manipulator, U.S. says
AP - LATimes.com
Washington - The Obama administration declined Friday to cite China for manipulating its currency to gain trade advantages against the United States.
But the Treasury Department noted that China said in June that it would begin allowing its currency to rise against the dollar. The department said the pace of revaluation has been too slow since and more rapid appreciation is needed.
The department's finding came in a report it must submit to Congress every six months on whether other countries are manipulating their currencies. American manufacturers have been pushing for China to be cited. That could result in penalty tariffs being imposed on Chinese imports.
Do American Drivers Get a 'Dictator Discount' on Gasoline?
By Lisa Margonelli - TheAtlantic.com
Today, as Anti-Mubarak protests in Egypt wear on, Brent crude oil prices are continuing their week long rise above $100 to levels not seen since 2008. While US drivers are fretting about the effect even higher gas prices will have on their commutes and the economy, we should also be asking ourselves the opposite question: Have dictatorships in the Middle East been giving us discounted gasoline? With our notorious dependence on cheap gas, have we been the beneficiaries of an authoritarian markdown at the pump?
Is California the new Japan? 5 charts showing nonfarm payrolls at 1998 levels
underemployment of 23 percent
685,000 homes at least 90 days delinquent
a massive zombie real estate sector
and a decreasing homeownership rate.
DoctorHousingBubble.com
California is facing a long and painfully drawn out foreclosure and budget crisis. From talking with average people it is apparent that psychologically, people have a hard time imaging a decade where things move horizontally. In terms of housing prices California is inching closer to a lost decade. We've already reached it if we include inflation adjustments but we are getting closer to seeing a nominal realignment. Thinking about it on a longer term basis shows us that California is likely to experience a Japan like economy for the next decade. There are few caveats but in terms of zombie banks, careful attempts trying to manage distressed inventory, and long-term underemployment it seems like the last few years have shown this is our future. Some seem to think there is no shadow inventory but there is a large amount on the balance sheet of banks. This isn't some economic fairytale. We also have a large number of foreclosures out in the open for the taking. When we connect all the dots it is hard to envision home price growth even looking deep into the future. Some states did not have massive home price inflation so it is likely that their level to correction is much lower. Let us look at a few charts and see where things are going.
New debts could affect your mortgage terms Freddie Mac and Fannie Mae are requiring lenders to scrutinize borrowers' credit behavior before and after they apply for a loan.
By By Kenneth R. Harney - LATimes.com
New credit transparency standards imposed on lenders by mortgage giants Freddie Mac and Fannie Mae could affect your mortgage deal. As of Feb. 1, Freddie Mac began requiring lenders to dig back 120 days into your credit bureau files to detect any inquiries - signs of your applying for credit anywhere else - and then to check out whether any applications were approved. If they resulted in significant new debts, your lender might have to revise the terms or the rate you're being offered.
Meanwhile, Fannie Mae is requiring lenders to track or review your credit behavior after you've been approved for a mortgage but haven't yet gone to closing. That period often extends for 60 days or more. If inquiries pop up on your files during this time, lenders must check them out to determine whether any new debt might require a re-underwriting of the originally quoted terms.
The Real Estate Industrial Complex
TheAutomaticEarth Blog
Ilargi: Barbara J. Thompson, executive director of the National Council of State Housing Agencies, a non-profit organization that purports to keep homes in the US affordable, is either deeply misguided or a shrewd manipulator working on behalf of the business segment of what Business Week's Lorraine Woellert calls "The Real-Estate-Industrial Complex".
The present US housing finance system, in which the government - through Fannie Mae, Freddie Mac, Ginnie Mae, the FHA and others-, guarantees all losses from mortgage loans for the lenders, but none for the borrowers, is the prime perpetrator in, if not the outright cause of, the financial -and political- crisis the US finds itself in. It's those government -read: taxpayer- guarantees that made it possible for lenders to throw all caution to the wind, lend to anyone who could fog a mirror, and use the proceeds to engage in ultra-high-stakes poker games in the international finance markets.
The Real Estate Lobby Is Ready to Rumble Financiers, homebuilders, and real estate agents are uniting to save mortgage subsidies
By Lorraine Woellert - BusinessWeek.com
Barbara J. Thompson plans to put a human face on the high-stakes debate over whether to preserve cherished U.S. government subsidies for home loans. Hundreds of faces, in fact. Next month, she'll lead a legion of "everyday people" to Capitol Hill to affirm the virtues of homeownership and urge Congress not to abandon federal support for low-cost mortgages. "These are your neighbors, they're the people who teach your kids at school, they're your firefighters," says Thompson, executive director of the National Council of State Housing Agencies, whose members help provide loans to first-time home buyers. "The middle working class is the bedrock of our country."
The Mortgage Morass
By JOSHUA GREEN - TheAtlantic.com
Few questions provoke a heated partisan response as reliably as what to do about Fannie Mae and Freddie Mac. It's not hard to understand why. During the economic collapse, the government had to bail out the failing mortgage giants at enormous cost to taxpayers-- at last count, more than $150 billion. Yet two years later, they dominate the troubled mortgage market, while private lending shows few signs of returning.
At heart, the dispute is an ideological one, about the proper role of government. Republicans downplay Wall Street's excesses and blame Fannie and Freddie for causing the crisis by succumbing to political pressure to make loans to poor people who were not creditworthy. They consider removing government from the mortgage business an urgent priority, and many new Republicans were elected by vowing to make that happen.
Obama Administration to States: Don't Cut Medicaid. Instead, Do More With Less.
Peter Suderman | Reason.com
State budgets across the nation are in crisis, and a big part of the reason why is that they can't afford their Medicaid programs. Arizona has already proposed dropping roughly 280,000 individuals from its Medicaid rolls, and is looking to the federal government for permission. Other states may soon follow. In response to the , the Obama administration's Health and Human Services department has provided some guidance. By judging by this write up in The New York Times, I'm not sure it's all that helpful:
An administration official, discussing the letter on condition of anonymity, said: "Cuts can hurt people. We certainly see that."
The official said that, instead of taking an ax to Medicaid, states should find ways to save money and improve care at the same time.
This is the sort of wisdom that only the federal government's auteurs of bureaucracy could come up with: Instead of making cuts to services, states should find ways to save money that also make care better. After all, doing more with less is usually so easy. And clearly no one has thought of this idea before. If they're still short, presumably HHS will encourage them to find those pots of free gold that are constantly getting left near the ends of rainbows.
Congressman Paul Broun discusses Healthcare
with Judge Napolitano
Einstein was right - honey bee collapse threatens global food security The bee crisis has been treated as a niche concern until now, but as the UN's index of food prices hits an all time-high, it is becoming urgent to know whether the plight of the honey bee risks further exhausting our food security.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Almost a third of global farm output depends on animal pollination, largely by honey bees.
These foods provide 35pc of our calories, most of our minerals, vitamins, and anti-oxidants, and the foundations of gastronomy. Yet the bees are dying - or being killed - at a disturbing pace.
The story of "colony collapse disorder" (CCD) is already well-known to readers of The Daily Telegraph.
Some keep hives at home and have experienced this mystery plague, and doubtless have strong views on whether it is caused by parasites, or a virus, or use of pesticides that play havoc with the nervous system of young bees, or a synergy of destructive forces coming together.
Jobs drought continues with little relief in sight
By PETER MORICI, UPI
COLLEGE PARK, Md., Feb. 3 (UPI) -- Friday, economists expect the U.S. Labor Department to report the economy added 150,000 jobs in January, barely enough to hold unemployment steady at about 9.4 percent and far less than should be expected 19 months into an economic recovery.
Additional tax cuts effective in January are giving the economy some lift but being temporary, their effect is limited. And, tax cuts, no matter how popular, don't address structural problems holding back jobs creation -- principal among those are the huge trade deficit, rising healthcare costs and persistent shortages of venture capital and bank lending for small businesses.
Government Uses Magic to Fudge Unemployment Data
By Jon C. Ogg - 247WallStreet.com
The Labor Department is out with its unemployment rate and the change in non-farm payrolls. If you like to challenge the government's math or accuse the government of fudging numbers, today's data will add more fuel to your fire. Personally, I come from the camp that the government cannot adequately organize a parade rather than fall under the spell that the government secretly controls everything under the sun. Today's jobs data challenges this belief above and beyond reproach.
Somehow, some way, the unemployment rate for January magically and mysteriously dropped to 9.0% from 9.4% reported in December. Here is the great mystery: the non-farm payrolls grew by a tiny figure of only 36,000.
FCC Net Neutrality is a Regulatory '‘Trojan Horse,'
EFF Says
By David Kravets - Wired.com
The Federal Communications Commission's net-neutrality decision opens the FCC to "boundless authority to regulate the internet for whatever it sees fit," the Electronic Frontier Foundation is warning.The civil rights group says the FCC’s action in December, which was based on shaky legal authority, creates a paradox of epic proportions. The EFF favors net neutrality but worries whether the means justify the ends.
"We're wholly in favor of net neutrality in practice, but a finding of ancillary jurisdiction here would give the FCC pretty much boundless authority to regulate the internet for whatever it sees fit. And that kind of unrestrained authority makes us nervous about follow-on initiatives like broadcast flags and indecency campaigns," Abigail Phillips, an EFF staff attorney, wrote on the group's blog Thursday.
And the paradox grows.
Governments Struggle to Stand Still
By Bill Bonner - DailyReckoning.com
02/04/11 Los Perros, Nicaragua - Facebook didn't even exist until 2004. Maybe it's just a fad. But it is a fad that the financial markets value at $50 billion. Mark Zuckerberg is now one of the richest men in the world. If he stole the idea, he is one of the most successful thieves in history. Google is another parvenu. It was created in 1998. Now it is worth $197 billion. Yahoo!, founded in the middle of the Clinton years, is worth $20 billion. eBay, which set up shop about the same time, has a market value of $40 billion.
Capitalism is a process of "creative destruction," said Joseph Schumpeter. New wealth is created. Old wealth is destroyed. Unless the feds can make time stop, these great successes of today will be the great failures of tomorrow.
The "crisis in capitalism" is now in its 5th year. But where's the crisis? Capitalism responds to demands that haven't even been invented yet. We didn't know we needed a Facebook, for example, and there it is. Whole new industries are growing up, worth trillions of dollars, with hundreds of thousands of well-paid employees, high margins and rapid growth rates. Capitalists are taking trillions of dollars from old businesses and re-allocating it to new ones. Emerging markets have grown 85% in the last 5 years, while mature markets have been flat. According to a McKinsey study, global investment is expected to jump from $11 trillion this year to $24 trillion in 2030 - with most of the money going to market economies that didn't even exist 30 years ago.
Don't Cry for Argentina
By Joel Bowman - The DailyReckoning.com
02/05/11 Buenos Aires, Argentina - To be immortal is commonplace; except for man, all creatures are immortal, for they are ignorant of death; what is divine, terrible, incomprehensible, is to know that one is immortal. ~ Jorge Luis Borges
Everything is illuminated against its opposite; truth against fallacy; light against darkness; life against death. And who would have it any other way, even if they could? What would life, for instance, be without the eternity of its terminally mysterious counterpoint?
If there exists a perfect setting for these and associated meditations, it must surely be the magnificent Recoleta Cemetery, located right here in Buenos Aires. On any given weekend, this sacred resting place for thousands of the city's most famous - and infamous - people is found to be one of the liveliest places in town. Notable internments include a who's who list of Argentine writers, painters, poets, musicians, scientists and luminaries from other noble fields of interest. And, because nothing, including death, is beyond the law of equilibrium, a handful of politicians also rot underfoot.
Egypt Journalists Roundup Continues As Violence Escalates
Video From Tahrir Square Goes Dark.. Journalists Detained, Beaten.. Swedish Reporter Stabbed.. ABC Producer Threatened With Beheading
AP/The Huffington Post
CAIRO - Protesters and government supporters fought in a second day of rock-throwing battles at a central Cairo square while more lawlessness spread around the city. New looting and arson erupted, and gangs of thugs supporting President Hosni Mubarak attacked reporters, foreigners and rights workers while the army rounded up foreign journalists.
The New York Times reported that there is no longer any live video feed coming from Tahrir Square.
As bruised and bandaged protesters danced in victory after forcing back Mubarak loyalists attacking the square, the government increasingly spread an image that foreigners were fueling the turmoil and supporting the unprecedented wave of demonstrations demanding the ouster of Mubarak, the country's ruler for nearly three decades.
Capital Leaving Middle East Looking For Safe Havens In Hard Assets and Oil - by Jeb Handwerger - OilPrice.com
Last week I warned of a flare-up in Egypt and a reversal in oil and gold. The media are transmitting pictures of street scenes in Egypt that for the most part appear benign. However, riptides of anti-Americanism are squirreling ominously beneath the surface. There are reports that El Baredei is to form a unity government with the Muslim Brotherhood. Business leaders, Westerners, and major shipping companies have rerouted their ships away from Egypt. Egypt has been an ally of the United States for more than 30 years but the new leadership may move the country more extreme. President Hosni Mubarek has been "America's Man" at the cost of over a billion dollars a year. During Mubarek's rule Egypt has been at peace with Israel and the US, yet there is now growing anti-Western sentiment. It is a complex situation loaded with large "Black Swans."
Will Democracy Become Islam's Best Friend?
A Commentary by Jakob Augstein - Spiegel.de
Millions of people in the Middle East want freedom, just as Eastern Europeans once did. Twenty years ago, the West was a role model, but it betrays its own values. In doing so, it is also strengthening its enemy: militant Islamism.
"Sixty years of Western nations excusing and accommodating the lack of freedom in the Middle East did nothing to make us safe -- because, in the long run, stability cannot be purchased at the expense of liberty."
George Bush the Younger said that. And one can see: The West wasn't lacking nice words or intelligent insights. What was missing, though, were the right policies -- and, much worse, a belief in our own values.
Cash-starved Egyptians turn on one another
By Tarek El-Tablawy - Associated Press - WashingtonTimes.com
CAIRO (AP) - For more than a week, Zaki Abdel-Aziz had been out of work and nearly out of money, joining millions of Egyptians living more on hope than cash as the capital plunged into chaos and the economy ground to a virtual halt.
His wife and three children were hungry, tired and tense. There was just over 100 Egyptian pounds ($17) in their apartment, and no way to borrow more. Then a chilling call came Tuesday night.
"The guy asked me: 'Zaki, you haven't worked for a week, right? You don't have money?'" Mr. Abdel-Aziz, 45, recalled. "He said: "Come out tomorrow, and you'll get 100 pounds and a bag of food. All you have to do is join us against those traitors in Tahrir."
Red Alert: Hamas and the Muslim Brotherhood
January 29, 2011 | Stratfor
The following is a report from a STRATFOR source in Hamas. Hamas, which formed in Gaza as an outgrowth of the Egyptian Muslim Brotherhood (MB), has an interest in exaggerating its role and coordination with the MB in this crisis. The following information has not been confirmed. Nonetheless, there is a great deal of concern building in Israel and the United States in particular over the role of the MB in the demonstrations and whether a political opening will be made for the Islamist organization in Egypt.
The Egyptian police are no longer patrolling the Rafah border crossing into Gaza. Hamas armed men are entering into Egypt and are closely collaborating with the MB. The MB has fully engaged itself in the demonstrations, and they are unsatisfied with the dismissal of the Cabinet. They are insisting on a new Cabinet that does not include members of the ruling National Democratic Party.
Mubarak rejects stepping down immediately; bloody clashes continue
By Will Englund , Griff Witte and William Branigin - Washington Post
CAIRO - As bloody attacks on anti-government demonstrators in central Cairo continued for a second day Thursday, embattled President Hosni Mubarak rejected opposition demands that he leave power immediately, saying such a move would throw the country into chaos.
In an interview with ABC News, Mubarak, 82, said he was tired of being president after nearly 30 years in office and would like to leave now, but he could not for fear of what would result. He said he told President Obama recently, "You don't understand the Egyptian culture and what would happen if I step down now." But he insisted that he is serious about not running for reelection and pledged that his son Gamal would not succeed him.
President Hosni Mubarak says chaos, fundamentalist threat would follow his departure - LATimes.com
Egyptian President Hosni Mubarak said in an interview with ABC News Thursday that if he were to give in to demands for his resignation the country would descend into chaos and be at risk of Islamic radicals' seizing control.
"I am fed up. After 62 years in public service, I have had enough. I want to go," Mubarak told ABC News' Christiane Amanpour in an interview at the presidential palace in Cairo. But he said that if he were to leave now, "there would be chaos."
White House, Egypt Discusses Plan for Mubarak's Exit
By HELENE COOPER and MARK LANDLER - NYTimes.com
WASHINGTON - The Obama administration is discussing with Egyptian officials a proposal for President Hosni Mubarak to resign immediately, turning over power to a transitional government headed by Vice President Omar Suleiman with the support of the Egyptian military, administration officials and Arab diplomats said Thursday.
Even though Mr. Mubarak has balked, so far, at leaving now, officials from both governments are continuing talks about a plan in which, Mr. Suleiman, backed by Sami Enan, chief of the Egyptian armed forces, and Field Marshal Mohamed Tantawi, the Defense Minister, would immediately begin a process of constitutional reform.
Egypt now fears Obama a 'Manchurian President' 'They are trying to understand why he is acting against U.S. interests' -- WND.com
Top members of the Egyptian government say they feel betrayed by President Obama, charging that he is acting against American interests.
"Mubarak's regime feels Obama is pushing the advancement of the Muslim Brotherhood against U.S. interests," said WND's Jerusalem bureau chief and senior reporter Aaron Klein. "They are genuinely trying to understand why Obama is seemingly championing the anti-regime protests."
Klein said that a top Egyptian diplomat with whom he has developed a rapport over the last few years asked him earlier this week to explain Obama's motivation to support the opposition to Mubarak.
Obama's "Stealth" Egyptian Dilemma
Bill Siegel - FamilySecurityMatters.org
Much has already been written about the Obama administration's difficulties in responding to the current protests in Egypt. Serious unenviable ramifications lie in wait for any strategy adopted by the administration. Like every serious Middle East turn of events, where stability is so threatened and vital, a delicate balance of well considered and well informed thought is of paramount necessity.
Nonetheless, true leadership requires the administration, at the appropriate time, to clearly articulate U.S. interests and, more importantly, identify our allies and enemies. It is apparent that the administration desires to continue America's cooperative relationship with the Egyptian military, part and parcel of years and billions in military aid. In the name of stability the military is of prime importance.
Lindsey Williams - Egypt, Middle East, US, and the next 6 months, with Dr. Stan Montieth
As violence spreads in Cairo, Mubarak says he fears chaos if he quits now -- Mobs attack foreign journalists
By Maggie Michael - Associated Press - WashingtonTimes.com
CAIRO (AP) - President Hosni Mubarak has said in an interview with ABC News that he wants to leave office now, but cannot for fear the country will sink deeper into chaos.
ABC‘s Christiane Amanpour says Mr. Mubarak told her Thursday that he is troubled by deadly violence between anti- and pro-government groups in Cairo’s Tahrir Square and that the government is not responsible for it.
In the interview at the presidential palace, Mr. Mubarak blamed the outlawed Muslim Brotherhood for the violence.
Mr. Mubarak has said he will not run for office again after his term ends this year, but protesters want him to leave now. According to the ABC website, the president also said he did not intend for his son, Gamal, to assume the presidency after him.
Sudden Split Recasts U.S. Foreign Policy
By HELENE COOPER, MARK LANDLER and MARK MAZZETTI - NYTimes.com
WASHINGTON - After days of delicate public and private diplomacy, the United States openly broke with its most stalwart ally in the Arab world on Wednesday, as the Obama administration strongly condemned violence by allies of President Hosni Mubarak of Egypt against protesters and called on him to speed up his exit from power.
Egypt's government hit back swiftly. The Foreign Ministry released a defiant statement saying the calls from "foreign parties" had been "rejected and aimed to incite the internal situation in Egypt." And Egyptian officials reached out to reporters to make clear how angry they were at their onetime friend.
Street Battle Over the Arab Future
By ANTHONY SHADID - NYTimes.com
CAIRO - The future of the Arab world, perched between revolt and the contempt of a crumbling order, was fought for in the streets of downtown Cairo on Wednesday.
Tens of thousands of protesters who have reimagined the very notion of citizenship in a tumultuous week of defiance proclaimed with sticks, home-made bombs and a shower of rocks that they would not surrender their revolution to the full brunt of an authoritarian government that answered their calls for change with violence.
The Arab world watched a moment that suggested it would never be the same again - and waited to see whether protest or crackdown would win the day. Words like "uprising" and "revolution" only hint at the scale of events in Egypt, which have already reverberated across Yemen, Jordan, Syria and even Saudi Arabia, offering a new template for change in a region that long reeled from its own sense of stagnation. "Every Egyptian understands now," said Magdi al-Sayyid, one of the protesters.
Turmoil Heartens U.S. Foes
By JAY SOLOMON - WSJ.com
DAMASCUS - The so-called resistance bloc of nations and Islamist movements, led by Iran and Syria, believes it is increasingly on the ascent as unrest seethes in the Middle East.
United in its opposition to the U.S. and Israel, this coalition is seeing many of its chief regional adversaries weakened - particularly Egyptian President Hosni Mubarak and Jordan's King Abdullah II.
Tehran and Damascus have also been buoyed by last month's toppling of Beirut's pro-Western government at the hands of Hezbollah, the Lebanese political party and militia the two countries fund and arm.
"[The unrest] proved that the global arrogance's era of domination and control of the region has come to an end," Iranian Foreign Minister Ali Akbar Salehi said on Tehran's state television this week, using Iran's catch-phrase for the U.S.
Hackers Shut Down Government Sites
By RAVI SOMAIYA - NYTimes.com
The online group Anonymous said Wednesday that it had paralyzed the Egyptian government's Web sites in support of the antigovernment protests.
Anonymous, a loosely defined group of hackers from all over the world, gathered about 500 supporters in online forums and used software tools to bring down the sites of the Ministry of Information and President Hosni Mubarak's National Democratic Party, said Gregg Housh, a member of the group who disavows any illegal activity himself. The sites were unavailable Wednesday afternoon.
Internet, social media make their mark in Egypt's crisis
By Elizabeth Wong - The Washington Times
The political unrest exploding across the Middle East is just the latest illustration that social media is no longer just for teenagers to tweet about their lives, play Farmville, and post pictures from last weekend's party. Today, it has the potential to shake regimes and drive leaders from power.
Access to and control of the Internet, Facebook, Twitter and other social media sites have been critical battlegrounds in the war between governments such as Egypt, the press and the crowds thronging the streets demanding change.
In Advance Of The Egyptian Bank Run...
by Tyler Durden - ZeroHedge.com
According to Al Jazeera, the Egyptian Central Bank has just imposed a withdrawal limit of $10,000 on all banks in order to prevent a systemic bank run that will promptly wipe out what is left of the financial system. Look for this number to be cut to $100 in the first several minutes after banks reopen (whenever that actually happens). As for all that central bank currency "gold backing", somehow we have a feeling that Egypt's 75.6 tonnes in gold is about to be drastically adjusted. Also, it is not too late to reevaluate that long EGPT thesis.
Government opponents, supporters rally in Yemen
By: Ahmed Al-Haj - WashingtonExaminer.com
SANAA, Yemen (AP) - Tens of thousands of opponents and supporters of Yemen's president staged dueling demonstrations on Thursday, underscoring deep divisions in a nation seen by the Obama administration as a key ally in its fight against Islamic militants.
Scuffles and stone-throwing erupted briefly between the two sides, but police intervened to keep the sides apart and there were no reported casualties. The relative calm contrasted with Egypt on Wednesday, where supporters of President Hosni Mubarak and anti-government protesters battled in Cairo's central square.
Busted: Pro-Mubarak Thugs Are Police Officers
George Washington's Blog It should surprise no one that some if not all of the violent pro-Mubarak forces are plain clothes police officers.
The Guardian notes:
Sharif Kouddous, a prolific Egyptian tweeter and blogger in Cairo, describes "a brutal and coordinated campaign of violence" by the Mubarak regime, in an article posted on Democracy Now's website:
"Suddenly, rocks started falling out of the sky," said Ismail Naguib, a witness at the scene. "Rocks were flying everywhere. Everywhere." Many people were hit. Some were badly cut, others had arms and legs broken. The mob then charged in; some rode on horseback and camels, trampling and beating people. Groups of them gathered on rooftops around Tahrir and continued to pelt people with rocks.
"It's a massacre," said Selma al-Tarzi as the attack was ongoing. "They have knives, they are throwing molotov bombs, they are burning the trees, they are throwing stones at us ... this is not a demonstration anymore, this is war."
Beijing censors Egypt protests
AsiaNews.it Video and pictures of street protests and tanks in the streets are banned. News stories are relegated to the back pages of newspapers. Words like Egypt and Tunisia are blocked online. Experts believe the Chinese government is concerned that events in Egypt will not only awake memories of Tiananmen Square in 1989 but also raise ideas about the current situation.
Beijing (AsiaNews/Agencies) - China's state-run media has largely avoided commenting on the turmoil sweeping Egypt. Unlike the rest of the world, the strife has been reported as a secondary story. For experts, the situation in Egypt is too similar to that of China, and events in Cairo are too close for comfort to the protest and slaughter of June 1989 in Tiananmen Square.
Chinese media have hardly shown any images of the mass protests or tanks in Egyptian streets, which are too much of a reminder of anti-government protests in Beijing in 1989 (pictured, an Egyptian demonstrator opposing a tank).
Gold buying spree grips Chinese households
By David Lew
BEIJING (Commodity Online): An unprecedented investor interest in gold is turning Chinese households as store houses of wealth these days as people are on a gold buying spree across the rural and urban areas of the dragon country.
Bundles of news stories are these days written on the gold buying spree by the Chinese households. If not an overstatement, it is now a fact that people's houses in China have soared in value thanks to the rising prices of gold in the last two years.
"People in China are buying gold like never before. They believe that gold is the best form of investment. So they are buying gold coins, bars and jewellery items and stocking up safely in their homes," says Beijing-based bullion dealer J Kim Lee.
Gold Daily and Silver Weekly Charts - Hyperinflation vs. Deflation Debate
JESSE'S CAFÉ AMÉRICAIN
Just another day with the money makers.
I wanted to bring your attention to the Deflation vs. Hyperinflation debate coming up between Stoneleigh and Lira. I respect both of the participants so I am sure it will be interesting.
I ought to note that, alas, I disagree with both of them I think. As you know my forecast has, for quite some time, been for stagflation. I consider both deflation and hyperinflation to be on the tails of probability and less likely excepting policy error in a purely fiat currency. With a fiat currency the outcome is most likely to be the result of a policy decision, tying in both the fiscal and monetary authorities. By pure I mean not encumbered by external forces such as the gold standard or a dollar peg.
Why the Dollar Is Tanking as Cairo Burns
By CHARLES WALLACE - DailyFinance.com
When a world crisis erupts, such as the current fighting in Egypt, investors usually flee to safety. Historically, that has meant piling into the U.S. dollar. But a funny thing happened when protesters took to the streets of Cairo: The dollar tanked.
The dollar has fallen 5.5% since its recent peaked on Jan. 10, though it regained a little bit of ground Wednesday. What's causing the retreat?
Turns out, the answer is more likely found in Europe than in the Middle East.
Kathy Lien, author of The Little Book of Currency Trading, says investors are looking at inflation expectations in Europe, which are much higher than in the U.S., and they believe "central banks may raise interest rates this year."
More Investors Position for Possibility of U.S. Default
By KATY BURNE - WSJ.com - $$
The net notional amount of derivatives used to hedge or speculate against a default on U.S. government debt rose 12% in late January, according to Depository Trust & Clearing Corp. figures.
The increase suggests investors are becoming more nervous about the quality of U.S. debt. It also threatens to cast a pall over the notion that Treasurys are risk-free assets investors should run to for haven from other instruments.
The net notional of credit default swaps bought and sold on U.S. debt rose from $2.67 billion to just over $3 billion between Jan. 14 and Jan. 21, according to DTCC data updated Tuesday. The gross notional rose from $16.1 billion to $17.2 billion, or 6.8%.
Bernanke dismisses inflation concerns, says unemployment turnaround will take years
By Neil Irwin - Washington Post
The economy is poised to grow more rapidly this year, Federal Reserve Chairman Ben S. Bernanke said Thursday, dismissing fears that rising fuel prices will trigger broad-based inflation. But he emphasized that it will still take several years before the unemployment rate comes down to normal levels.
Speaking at the National Press Club and, in a rare step, taking questions from journalists, Bernanke gave a mixed assessment of the nation's economic prospects but left little doubt that he views getting the job market on track as the top priority for the Fed.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," Bernanke said.
Marc Faber Calls Bernanke A Liar, Thinks US Inflation Is Running Up To 8%, Believes Pakistan Will Fall Next
by Tyler Durden - ZeroHedge.com
Marc Faber is on a roll these days. The Gloom, Doom and Boom report author, who recently made headlines after calling Obama a whore minutes ahead of the president's SOTU address, proceeds to go on a truthiness rampage, and with his now traditional grin, proceeds to call Satan Bernanke a "liar" to the entire CNBC Europe audience. In addition to making his thoughts clear on the topic of inflation (5-8%), he also observes where the Egyptian riots will strike next: "You may not have a problem in Saudi Arabia and in the Emirates, in Kuwait and Qatar, because there the governments can heavily subsidize food if they want to. But I am worried that what has happened in Egypt will happen in Pakistan... I think Egypt is a reminder to people that politics, and social events, and geopolitics have a meaningful effect on asset markets.
Even Donald Trump Is Warning That An Economic Collapse Is Coming
TheEconomicCollapseBlog.com
In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America. Using phrases such as "you're going to pay $25 for a loaf of bread pretty soon" and "we could end up being another Egypt", Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business. As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation. In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012. But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.
Bernanke: More jobs needed for real recovery
By Jeannine Aversa - washingtonTimes.com
WASHINGTON (AP) - The United States can't recover fully from the worst recession in decades until hiring improves, Federal Reserve Chairman Ben S. Bernanke said Thursday.
The economy is strengthening and likely will grow at a faster pace this year as more-confident consumers and companies spend more, Mr. Bernanke said in prepared remarks to the National Press Club. But he warned that the growth won't be strong enough to quickly drive down high unemployment, and it could take several years before it returns to more normal levels.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he said.
Debt ceiling battle could turn into trench warfare
By James Pethokoukis - Reuters.com
Republicans aren't scared to toy with the U.S. debt limit. Both parties now seem to agree that failing to raise the country's borrowing cap would be a disaster. But brinkmanship looks likely as Republicans hold out for cuts far deeper than Democrats will easily accept. Pushed far enough, the tactic could still rattle Treasury markets.
Leaders inside the GOP certainly know their recent political history. And they have no intention of allowing their party to suffer a repeat of what happened in 1995. When Republicans took control of Congress that year, they squandered public confidence by being seen as responsible for shutting down the government in a budget dispute with President Bill Clinton.
Bernanke Says Debt Limit Not a 'Bargaining Chip'
By SEWELL CHAN - NYTimes.com
WASHINGTON - The Federal Reserve chairman, Ben S. Bernanke, warned Congressional Republicans on Thursday not to "play around with" an upcoming vote to raise the government's legal borrowing limit or use it as a bargaining chip for spending cuts.
In remarks that followed a luncheon speech here, Mr. Bernanke sided with the Obama administration in the fight over the debt ceiling, which the government is on course to hit in April or May, saying it should be raised without conditions. Some Republicans have insisted on immediate spending cuts in exchange for raising the limit.
Fed passes China in Treasury holdings
By Michael Mackenzie in New York - FT.com
The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.
Based on weekly data released on Thursday, the New York Fed's holdings of Treasuries in its System Open Market Account, known as Soma, total $1,108bn, made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips.
According to the most recent US Treasury data on foreign holders of US government paper, China holds $896bn and Japan owns $877bn.
"By June [the Fed] will have accumulated some $1,600bn of Treasury securities, likely to be in the vicinity of China and Japan's combined holdings," said Richard Gilhooly, a strategist at TD Securities. "The New York Fed surpassed China in the past month as the largest holder of US Treasury securities," he noted.
Congress Wants to Hear from Meredith Whitney on Muni Call
By Charlie Gasparino - FOXBusiness.com
A congressional subcommittee investigating the recent implosion of the $3 trillion municipal bond market wants analyst Meredith Whitney to come clean and explain her doomsday prediction of hundreds of billions of dollars in muni defaults over the next year.
The subcommittee, headed by Congressman Patrick McHenry, R-NC, has launched a broad investigation into the struggling market for debt issued by states and cities to determine, among other matters, whether states should be able to declare bankruptcy amid widespread fiscal woes, particularly in the Northeast, and exactly what has caused a sharp decline in prices in recent months.
Blinder Understates the Cost of a Carbon Tax
Mises Daily: by Robert P. Murphy
In a recent article in the Wall Street Journal, Alan Blinder listed numerous alleged benefits of a phased-in carbon tax. Out of his entire column, he devoted a single sentence to the possible downside of his plan when he wrote, "No one likes to pay higher taxes." A more balanced assessment shows that a carbon tax presents very real dangers, even if we rely on the same economic analysis that so enthralled Blinder.
Spurring Innovation through Higher Taxes?
Here's Blinder explaining the economic benefits of a carbon tax that starts out low, but will eventually become quite steep:
Once America's entrepreneurs and corporate executives see lucrative opportunities from carbon-saving devices and technologies, they will start investing right away - and in ways that make the most economic sense. I don't know whether all this innovation will lead to 80% of our electricity being generated by clean energy sources in 2035, which is the president's goal. But I can hardly wait to witness the outpouring of ideas it would unleash. The next Steve Jobs, Bill Gates and Mark Zuckerberg are waiting in the wings to make themselves rich by helping the environment.
Fed's Duke says current easing likely sufficient
By Ned Barnett
(Reuters) - A top Federal Reserve official said on Wednesday she does not think the U.S. central bank will have to extend its $600 billion bond-buying program beyond midyear, but economic weakness could force the Fed's hand.
"If the economy does, as I expect it to, and continues to, grow at a moderate pace, then I think things will begin to come together," Fed Governor Elizabeth Duke said in response to a question about extending the bond-buying program after a speech at the University of North Carolina's Kenan-Flagler business school.
"If we see further weakness in the economy, then we'll have to decide what seems to be the appropriate action to take at that time," Duke said.
Bernanke's Poverty Effect: Foodstamp Recipients Jump by 400K In November, Hit New Record Of 43.6 Million
by Tyler Durden - ZeroHedge.com
Much has been said about Bernanke's wealth effect and how it impacts a whopping 1% of the US population (traditionally, those very same bail out recipients who would be insolvent had Gen Ben not rescued the entire financial system at the expense of the DXY, which at last check was below 77 again). Unfortunately, a little less time has been spent discussing the equal and opposite effect: that of the poverty effect. Luckily, every month we get an update on this just as useful metric. And as of November, the SNAP program had 43.6 million participants, an increase of 400k from October, and a 14% increase, or 5.3 million from a year prior. We are confident that this 15% of the US population will be delighted to know that their rapidly diminishing dollars will end up acquiring increasingly less and less stuff.
Foreclosed Homeowners Go to Court on Their Own
By DAVID STREITFELD - NYTimes.com
ALBUQUERQUE - Saving your home from foreclosure is increasingly a do-it-yourself project.
Lawyers are scarce and free legal assistance is overwhelmed in New Mexico, so a community center here is offering an hour long class in how to download the correct forms, decipher the lingo and mount a defense, however tentative and primitive, against a multibillion-dollar bank.
"I don't see success for someone like me who doesn't understand the law," said Skylar Perea, a senior care aide who fell behind on her payments during the eight months she was out of a job. "But it's better than nothing."
For Tucson Survivors, Health Care Cost Is Concern
By MARC LACEY and SAM DOLNICK - NYTimes.com
TUCSON - Seconds after gunfire erupted outside a supermarket here last month, Randy Gardner, one of those struck during the barrage, said another looming crisis immediately entered his mind.
"I wondered, 'How much is this going to cost me?'" he said. "It was a thought that went through my head right away."
Tucson's medical system quickly swung into action after the shootings, with ambulances and medical helicopters rushing victims to hospitals where trauma specialists awaited them. The life-saving treatment the victims received over the ensuing days carried a heavy cost though, and the bills - the costliest of which may be in the hundreds of thousands of dollars for Representative Gabrielle Giffords - are still being tallied.
ObamaCare's Repeal Has Begun This week's Senate vote to scrap an IRS reporting requirement is the start of a piece by piece approach.
By KIMBERLEY A. STRASSEL - WSJ.com
Mark this date: On Feb. 2, 2011, a Democratic Senate killed the first piece of the health-care law it passed less than a year ago. Bowing (finally) to reality, 34 Democrats rushed to be among the 81 senators who axed the bill's odious 1099 tax reporting requirement.
Let the ObamaCare dismantling begin.
The White House and Democrats have worked hard in recent weeks to suggest that this first casualty of their signature legislative achievement was no big deal. President Obama went so far as to make the idea his own in his State of the Union address, offering up the end of 1099 as an example of his willingness to "improve" his health legislation. And the death of 1099 was indeed overshadowed by this week's headlines that the Senate GOP had failed to repeal the larger bill.
Senate rejects bid to repeal healthcare law
By Donna Smith and Thomas Ferraro
(Reuters) - President Barack Obama's fellow Democrats in the Senate blocked a Republican bid on Wednesday to repeal his healthcare overhaul, a year-old law whose ultimate fate likely rests with the U.S. Supreme Court.
On a party-line vote of 51-47, the Senate rejected a Republican measure to rescind the law that aims to provide more than 30 million uninsured Americans with medical coverage while requiring nearly all to be insured or pay a fine. Sixty votes were needed to clear a procedural hurdle against repeal.
Senate Majority Leader Harry Reid scoffed at Republican efforts, saying: "They want to replace patients' rights with insurance companies' power. They want to replace health with sickness. They want to replace the promise of tomorrow with the pain of yesterday."
With Obamacare ruled unconstitutional; states embrace limits on federal power -- by Mike Adams, the Health Ranger
(NaturalNews) Federal Judge Roger Vinson ruled this week that the "individual mandate" portion of Obama's health care reform was unconstitutional, dealing a significant blow to the Obama administration's desire to force government-run health insurance on the entire U.S. population. Department of Justice spokespeople reacted with a sense of twisted desperation, calling Judge Vinson's decision "judicial activism" as if he were inventing new law. In reality, of course, Judge Vinson merely ruled to protect existing law as written in the United States Constitution.
Three years ago, even President Obama would have agreed with Judge Vinson's decision. In arguing against the idea of an individual mandate in government-run health insurance, President Obama said in 2008, "If a mandate was the solution, we can try to solve homelessness by mandating everybody to buy a house."
The Legal Future of Obamacare
By Peter Ferrara - The American Spectator.org
As of this moment Obamacare is officially not the law of the land. As Federal Judge Roger Vinson ruled on Monday in Florida, "[T]here is a long standing presumption that officials of the Executive Branch will adhere to the law as declared by the court. As a result, the declaratory judgment is the functional equivalent of an injunction." That law as declared by the Federal District Court in Florida is now that Obamacare is unconstitutional.
This, of course, is the second federal court ruling that Obamacare is unconstitutional, following the ruling of Judge Henry Hudson in the Northern District of Virginia on December 13. I predicted in this space at the time that Judge Vinson would rule the same. Now he has. I filed amicus curiae briefs in both cases on behalf of the American Civil Rights Union arguing for these results. Those briefs drew on my work in The Obamacare Disaster: An Appraisal of the Patient Protection and Affordable Care Act, published by the Heartland Institute.
Conservatives, Liberals, and Obamacare
By R. Emmett Tyrrell, Jr. - The American Spectator.org
WASHINGTON -- My guess is that Judge Roger Vinson of the Federal District Court in Pensacola, Florida, is an amateur zoologist. Judge Vinson is the federal judge who ruled Monday that those who confected Obamacare cannot compel the citizenry to buy health insurance. Moreover, he found that because of the way the 2,600-page bill is created without any "severability clause" that makes the entire law unconstitutional. The authors of Obamacare declared that without mandatory insurance the whole bill was unworkable. Mandatory insurance was not severable from the law. Hence Judge Vinson, because of the way the bill was constructed, threw the whole law out. Now it is up to the Supreme Court to breathe life into this legislation or to bury it. I say RIP.
Smoking In The Park Banned, Ticketed For Cussing In Class And 14 Other Examples Of How Big Brother Is Systematically Ripping Our Liberties And Freedoms Away
EndOfTheAmericanDream.com
When our founding fathers established this nation, they did so with the intention that government would be very limited and that there would be a tremendous amount of liberty and freedom. But today that is such a distant memory that we don't even remember what "the land of the free and the home of the brave" actually means anymore. Our lives are constrained by literally millions of laws, rules and regulations and it gets worse every single day. The federal government, state governments, local governments and even homeowners associations have become absolutely tyrannical. There is a "law" or a "rule" for almost everything now, and many of them are absolutely ridiculous. Big Brother is ripping our liberties and freedoms away from us at a blistering pace. Just about any activity that you can think of other than sitting completely still in utter silence in your own home is tightly regulated by government. This is not what our founding fathers intended.
U.S. shuts down 10 streaming websites The sites are accused of illegally showing live sports events. The government action occurs just days before the Super Bowl.
By Tiffany Hsu, Los Angeles Times
Just days before the Super Bowl, government authorities in New York shut down 10 streaming websites accused of illegally showing live and pay-per-view sports events.
Content on popular websites such as Rojadirecta.org, Channelsurfing.net and ATDHE.net was replaced by a note saying that the domain names were seized by Immigration and Customs Enforcement officials through warrants obtained by the U.S. attorney's office for the Southern District of New York.
The other sites shut down Monday were HQ-Streams.com, HQ-Streams.net, Firstrow.net, Ilemi.com, Iilemi.com, Iilemii.com and Rojadirecta.com.
WikiLeaks: tension in the Middle East and Asia has 'direct potential' to lead to nuclear war Tension in the Middle East and Asia has given rise to an escalating atomic arms and missiles race which has "the direct potential to lead to nuclear war," leaked diplomatic documents disclose.
By Heidi Blake - Telegraph.co.uk
Rogue states are also increasing their efforts to secure chemical and biological weapons, and the means to deploy them, leaving billions in the world's most densely populated area at risk of a devastating strike, the documents show.
• The WikiLeaks cables in full
States such as North Korea, Syria and Iran are developing long-range missiles capable of hitting targets outside the region, records of top-level security briefings obtained by WikiLeaks show.
Long-running hostilities between India and Pakistan - which both have nuclear weapons capabilities - are at the root of fears of a nuclear conflict in the region. A classified Pentagon study estimated in 2002 that a nuclear war between the two countries could result in 12 million deaths.
Iran, China Block Outside Sites to Muzzle Mideast News
By Adam Rawnsley - Wired.com
The authoritarian regimes in Iran and China are playing a double game, when it comes to the unrest in the Middle East. Tehran and Beijing are doing their best to spin the protests in their favor, when they talk to the world. But at home, they're pursuing a different strategy: trying to muzzle anything but the official line on the upheaval.
Commentators have been keen to liken the revolutions in Egypt and Tunisia both to the 1979 revolution that brought the Iranian regime to power and the electoral protests of the Green Movement which tried to unseat it. Not surprisingly, the Iranian government has preferred to use the latter comparison.
Will the Muslim Brotherhood Close the Suez Canal?
By JOEL HILLIKER theTrumpet.com
Oil prices have spiked at just the possibility. Europe is keeping close watch.
Almost immediately after angry Egyptians took to the streets last week, oil jumped to over $100 a barrel. It was the first time oil hit triple digits since the record spike to $147 two years ago. Clearly, investors were spooked at even the thought of a disruption in energy production and shipping.
On Monday, we got a glimpse at one important reason why. A leading Muslim Brotherhood member said the Suez Canal should be immediately shut down.
Muhammad Ghannem made the provocative statement to an Arabic-language Iranian news network. He also said Egyptians should "be prepared for war against Israel."
Israeli PM says Iran wants 'another Gaza' in Egypt Netanyahu believes Iran has ambitions for an Islamist government in Egypt, open to peace talks with Palestinians
AP - Salon.com
Israel's prime minister says the Iranian leadership wants to take advantage of the chaos in Egypt to create "another Gaza" there, run by Islamic fundamentalists.
Benjamin Netanyahu also told the Israeli parliament Wednesday that he expects any new government to emerge in Egypt to honor Cairo's three-decade-long peace agreement with Israel.
He warned that Islamic groups took over by democratic means in Iran, Lebanon and Gaza.
He asked: "Is there freedom in Iran? Is there democracy in Gaza? Does Hezbollah promote human rights?" Netanyahu said such groups are not interested in an open and free Egypt, but an Egypt "that goes back to the Middle Ages."
ElBaradei's Role Cast in Doubt
By CHARLES LEVINSON - WSJ.com
CAIRO - To the outside world, the leader of Egypt's anti-Mubarak revolt is a scholarly former United Nations official named Mohamed ElBaradei.
But to the seasoned opposition leaders inside Egypt who have been at the center of the country's mass demonstrations, Mr. ElBaradei may be little more than a transitional figurehead.
In the weeks leading up to the extraordinary uprising, a spectrum of opposition figures banded together to plan an alternative vision to the regime of President Hosni Mubarak. Even before last month's popular ouster of Tunisia's president electrified protesters in Egypt and across the Middle East, these people held dozens of meetings lasting more than 100 hours. They created a 100-member "shadow legislature" of union leaders, judges and representatives from youth parties and the country's banned but influential Muslim Brotherhood, say people in attendance.
IMF Warns That Likelihood of Civil Wars is Increasing
By Rocky Vega - DailyReckoning.com
02/02/11 Stockholm, Sweden - The International Monetary FundÕs managing director, Dominique Strauss-Kahn, has pointed out that the global is economy is built upon a destabilizing and dangerous combination: emerging economies, where brisk growth has created two-tiered societies with rich and poor on hugely unequal footings, and developed nations, that are still wracked with high unemployment and have little relief in sight.
He suggests these imbalances are igniting the breed of deep-seated animosity that can lead to civil wars, especially in those countries with the largest wealth disparities and highest unemployment. According to the Telegraph:
"'It is not the recovery we wanted. It is a recovery beset by tensions and strain, which could even sow the seeds of the next crisis,' he [Dominique Strauss-Kahn] said.
"'Global unemployment remains at record highs, with widening income inequality adding to social strains,' he said, citing turmoil in North Africa as a prelude to what may happen as 400m youths join the workforce over the next decade. 'We could see rising social and political instability within nations - even war,' he said.
Mubarak's Supporters Strike Back U.S. Pushes for Speedier Regime Change as Rival Camps Clash in Egypt's Streets
By CHARLES LEVINSON and SUMMER SAID in Cairo and ADAM ENTOUS and JONATHAN WEISMAN in Washington - WSJ.com
Violence erupted in Egypt's capital when supporters of President Hosni Mubarak clashed for the first time with protesters, as the regime dug in against demands, from within the country and from Washington, that a transfer of power begin immediately.
The clashes began hours after Mr. Mubarak announced in a speech late Tuesday that he wouldn't run in elections slated for later this year. They gained intensity during the day in central Cairo's Tahrir Square, with the two sides rushing at each other, wielding clubs and throwing Molotov cocktails. Some Mubarak supporters charged protesters on horseback and camelback, a tactic the regime has employed against past demonstrations. Clutches of soldiers looked on, doing little to intervene.
Egypt's revolution turns ugly as Mubarak fights back
By Peter Beaumont, Jack Shenker in Cairo, Harriet Sherwood in Alexandria, Simon Tisdall - guardian.co.uk
Egypt's pro-democracy revolution descended into violence and bloodshed as President Hosni Mubarak's regime launched a co-ordinated bid to wrest back control of city streets, crush the popular uprising, and reassert its authority.
There were extraordinary scenes in the centre of Cairo as anti-government demonstrators fought running battles with organised cohorts of Mubarak supporters, exchanging blows with iron bars, sticks and rocks.
At one point pro-Mubarak forces rode camels and horses into central Tahrir Square, scattering opponents. At least three people were killed and up to 1,500 injured according to medical sources.
Rebuffed U.S. turns to Egypt military in the crisis 'Our sense is that the military, on balance, is still serving as a buffer between both sides and they likely still hold the key to a peaceful transition,' says one senior U.S. Defense official.
By Peter Nicholas, Paul Richter and David S. Cloud, Los Angeles Times
Faced with a bloody rejection of its call for a rapid, orderly transition of power in Egypt, the Obama administration finds itself with diminished leverage over President Hosni Mubarak, and has stepped up its contacts with the Egyptian military to try to exert influence over events rocking a key ally.
A frustrated administration Wednesday repeated its demand that Mubarak begin handing over power immediately. U.S. officials also sharply condemned the violence in Cairo that followed Mubarak's flat rejection of White House overtures to quit.
Media Become a Target as Egypt Protests Turn Violent Pro- and Anti-Mubarak Crowds Collide in the Worst Clashes Since Friday -- BY CHRISTIANE AMANPOUR - ABCNews.com
The worst clashes in a week erupted today in Cairo with pro-Mubarak mobs rushing Tahrir (Liberation) Square in an effort to wrest the area from the anti-government demonstrators.
After five days of peaceful protests, the square suddenly was engulfed in all-out battle.
It did not look to be a spontaneous eruption. It appeared to be deliberately orchestrated political theater, a planned and organized bid by supporters of President Hosni Mubarak to send a message. The stage for the violence, Tahrir Square, was in full view of the world audience.
Anti-government demonstrators have occupied the square for more than a week.
WHCA Complains: Press Shut Out at White House
By Matt Dornic MediaBistro.com
After being shut out of the President's Cabinet meeting on Tuesday, the White House Correspondents Association (WHCA) is appealing to the White House to give the press corps access to an event that's been called one of the President's most important foreign policy priorities for almost a year - the signing of the START Treaty. In a letter to Press Sec. Robert Gibbs, the WHCA Board complained about their lack of access to the President throughout the crisis in Egypt and outlined their request to open today's treaty signing to the White House pool. Letter from Julia Whiston of the WHCA below:
Cairo clashes: How chants turned to violence between pro and anti-Mubarak factions 'Scores of people were getting hit' says witness injured in Egyptian demonstration
By Mustafa Khalili - guardian.co.uk
I was watching a pro-Mubarak demo half a mile from Tahrir Square: about 300 to 400 people, who grew to thousands as they made their way to the square.
It was a mixed crowd, with women and children chanting peacefully in support of their president and many carrying photos of him. The problems started as this crowd got to the square and ran into the demonstrators calling for Mubarak to stand down.
Both sides chanted at each other; one lot pro, the other anti. Suddenly the pro-Mubarak protesters charged. A few of them shouted "Forward! Forward!" then hundreds charged towards the demonstrators. And then some of them started picking up rocks to throw.
Egypt unrest rattles oil markets
By Kathy Chu, USA TODAY
Oil prices soared past a key threshold of $100 a barrel Monday amid fears that violence in Egypt could disrupt the flow of oil or infect other parts of the Middle East.
Brent crude - the benchmark for oil prices in Asia and Europe - closed up 1.6%, to $101.01 a barrel Monday in London, passing the $100 mark for the first time in two years. Meanwhile, the U.S. benchmark crude, West Texas intermediate, settled at $92.19 a barrel, up 3.2%, on the New York Mercantile Exchange.
While Egypt is not a major oil producer, its proximity to other oil-producing countries is rattling the market.
Egypt protesters react angrily to Mubarak's televised address 'How dare he talk to us like children?' say demonstrators. 'If he's here until September then so are we'
By Jack Shenker and Peter Beaumont in Cairo, and Harriet Sherwood in Alexandria - The Guardian
The crowd had rigged up a huge screen to show al-Jazeera. Mubarak's speech was broadcast live. As he announced that he would not be standing for another term, the rally exploded in anger.
The screen was pelted with bottles and the cry "Irhal, irhal" went up repeatedly: "Leave, leave". It was taken up by the hundred thousand people who thronged Tahrir Square. At one point demonstrators held up their shoes to the screen - an insulting gesture in Arab culture.
None of them were appeased by Mubarak's announcement. If anything, they were emboldened to step up their protests and to push their demands further. Many were saying that not only must Mubarak leave immediately but that the whole of his National Democratic party regime had to go and should be put on trial.
Clashes rage in Tahrir Square At least one dead and hundreds injured as pro-Mubarak supporters attack protesters seeking President Mubarak's ouster.
AlJazera.net
Clashes have broken out between pro- and anti-government demonstrators in the Egyptian capital Cairo.
Protesters from both sides threw stones at each other in Tahrir Square, the epicentre of ongoing opposition demonstrations against President Hosni Mubarak for the past nine days
The health ministry said at least one person had been killed and another 400 injured in Wednesday's violence.
Al Jazeera correspondents, reporting from the scene, said clashes were still raging and that petrol bombs were being hurled.
Earlier, witnesses said the military allowed thousands of pro-Mubarak supporters, armed with sticks and knives, to enter the square. Opposition groups said Mubarak had sent in thugs to suppress anti-government protests.
Mubarak supporters stage brutal bid to crush Cairo uprising Egyptian president's regime orchestrates bloody battles in Tahrir Square against protesters seeking his removal from power
By Peter Beaumont, Jack Shenker and Mustafa Khalili in Cairo - guardian.co.uk
Supporters of Hosni Mubarak moved today to brutally crush the popular uprising against him as they stormed Cairo's Tahrir Square, for days the epicentre of the movement to remove the Egyptian president.
Using clubs, bats, knives and even homemade spears, pro-Mubarak demonstrators charged the square at just before 2pm. They had been gathering for several hours 800 metres from the square on the Nile Corniche, outside the state television station.
The violence was immediately condemned by David Cameron, who called it "deplorable", by the UN secretary general, Ban Ki-moon and by President Barak Obama, suggesting Mubarak's resistance may be in danger of badly backfiring.
Jewish prayers for Egypt's uprising Many Jews from around the world support Egyptian self-determination because of Judaism's own historic past with Egypt.
By Michael Lerner - AlJazera.net
Ever since the victory over the dictator of Tunisia and the subsequent uprising in Egypt, my email has been flooded with messages from Jews around the world hoping and praying for the victory of the Egyptian people over their cruel Mubarak regime.
Though a small segment of Jews have responded to right-wing voices from Israel that lament the change and fear that a democratic government would bring to power fundamentalist extremists who wish to destroy Israel and who would abrogate the hard-earned treaty that has kept the peace between Egypt and Israel for the last 30 years, the majority of Jews are more excited and hopeful than worried.
Of course, the worriers have a point. Israel has allied itself with repressive regimes in Egypt and used that alliance to ensure that the borders with Gaza would remain closed while Israel attempted to economically deprive the Hamas regime there by denying needed food supplies and equipment to rebuild after Israel's devastating attack in December 2008 and January 2009. If the Egyptian people take over, they are far more likely to side with Hamas than with the Israeli blockade of Gaza.
Cairo clashes fuel Egypt turmoil At least one dead and hundreds injured as pro-Mubarak supporters attack protesters seeking President Mubarak's ouster.
AlJazera.net
Clashes have broken out between pro- and anti-government demonstrators in the Egyptian capital Cairo.
Protesters from both sides threw stones at each other in Tahrir Square, the epicentre of ongoing opposition demonstrations against President Hosni Mubarak for the past nine days.
Al Jazeera correspondents, reporting from the scene, said that more than 500 people had been injured in Wednesday's clashes that are still continuing.
Earlier, witnesses said the military allowed thousands of pro-Mubarak supporters, armed with sticks and knives, to enter the square. Opposition groups said Mubarak had sent in thugs to suppress anti-government protests.
US begins evacuation of non-essential staff in Egypt as foreigners scramble to leave
TheGuardian.pe.ca
CAIRO - The evacuation of nonessential U.S. government personnel and their families began Wednesday while crowds kept piling up at Cairo's airport as thousands of other foreigners played the odds in hopes of securing a seat aboard a commercial airline that would lift them far above the chaos in Egypt.
More than 8,000 passengers were at the airport early Wednesday, with more expected to arrive in the early afternoon before the start of a curfew that Egyptian state television said had been pushed back to 5 p.m.
Airport officials said more than 18,000 passengers had been massed in about three departure terminals on Tuesday, over half of them boarding special flights sent in by their governments.
In Egypt, an uprising FED by inflation
By SAM DEALEY, UPI Outside View Commentator
WASHINGTON, Feb. 1 (UPI) -- Last Wednesday, the Federal Reserve of the United States released a mixed-bag statement of the Federal Open Market Committee's assessment of the domestic economy.
Among the happier moments was that household and business spending is on the rise -- and yet, the FOMC noted, "longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward." In fact, the statement continued, "measures of underlying inflation are somewhat low, relative to levels that the committee judges to be consistent, over the long run with its dual mandate."
Obama Should Be Careful What He Wishes for in Egypt
By Terence P. Jeffrey
(Commentary) - An American in Cairo in the mid-1980s could not have failed to notice the ubiquitous young men in black uniforms, holding rifles and standing as generally inattentive and slump-shouldered sentries in front of major embassies and public buildings. The reassuring rumor was that their rifles were not loaded.
These young men were conscripts of the Central Security Police -- the lowest of the low in Egypt's national security forces.
All young men in Egypt were compelled to serve in some security force. College graduates served as officers and in elite units. Those with lesser educations filled out the ranks. Illiterates pulled from the very bottom of Egypt's socio-economic pyramid were consigned to the security police.
U.S. walks the line on Egypt The wonder isn't that it took Obama so long to put himself on the side of the demonstrators but that he was able to pivot as fast as he did. -- By Doyle McManu -LATimes.com
A little more than two months ago, when Hosni Mubarak's government rigged Egypt's most recent parliamentary elections, the Obama administration issued a notably mild statement expressing "dismay." That reaction wasn't nearly strong enough for Mohammed ElBaradei, Egypt's leading opposition figure and the man who may lead the country's next government. "I was dismayed," he wrote, "that all [the administration] could say is that it was dismayed."
But the U.S. has attempted a difficult balancing act for decades where Egypt is concerned. And though it's easy to criticize President Obama for not condemning undemocratic elections or rushing to embrace the demonstrators in Tahrir Square, his hesitation in both instances was understandable, even if it wasn't admirable.
Obama's Too Conservative Re: Egypt
By John R. Guardiano - The American Spectator.org
To a significant extent, President Obama's innate caution and temperamentally conservative nature have served him well. It's why he has reneged on his campaign pledge to close Guantanamo Bay. And it is why (after much dithering and indecision, admittedly) he finally and belatedly committed the United States to a prolonged strategy of counterinsurgency in Afghanistan.
But Obama's strength has also been his profound weakness vis-ˆ-vis Egypt. He has been cautious to a fault. Consequently, he and his administration have consistently been behind the curve, surprised by events, and caught flatfooted by the trajectory of history.
Thus his Secretary of State, Hillary Clinton, last week declared that the Mubarak regime was stable just before it dissolved.
Will Jordan Fall to Radical Islam?
From theTrumpet.com
Will the same forces that are wreaking havoc in Egypt bring down the Jordanian government?
Jordanian King Abdullah ii fired his government on February 1 after three weeks of protests. Nearly half of Jordan's population are of Palestinian origin. Just as in Egypt, the Muslim Brotherhood is a powerful political force.
The political wing of Jordan's Muslim Brotherhood, the Islamic Action Front, demanded the resignation of the government, the reform of Jordan's election law and the formation of a new unity government with a prime minister not chosen by the king, which is customary, but by the people.
Last Friday, several thousand Islamists and trade union members gathered in the capital, as well as six other cities, to protest. This is the third consecutive Friday that has seen such protests.
In response, King Abduallah sacked the government and asked Prime Minister Marouf Bakhit to form a new one.
Radical Muslim sect again stalks northern Nigeria
A group known as the 'Nigerian Taliban' is waging war against the government
By JON GAMBRELL - AP via MSNBC.com
MAIDUGURI, Nigeria- In the dusty streets of northeastern Nigeria, far from the battlegrounds of Afghanistan, a group known as the Nigerian Taliban is waging war against a government it refuses to recognize.
The radical Muslim sect called Boko Haram was thought to be vanquished in 2009, when Nigeria's military crushed its mosque into concrete shards, and its leader was arrested and died in police custody. But now, a year later, Maiduguri and surrounding villages again live in fear of the group, whose members have assassinated police and local leaders and engineered a massive prison break, officials say.
Yemeni president vows to step down when term ends in 2013 Ali Abdullah Saleh says he will not extend his presidency in a move that would end 30-year rule
Reuters in Sana'a - guardian.co.uk
The Yemen president, Ali Abdullah Saleh, said today he will not seek to extend his presidency when his term expires in 2013 - a move that would end his three-decade rule.
Eyeing protests that brought down Tunisia's leader and threaten to topple Egypt's president, Saleh also vowed not to pass on the reins of government to his son, but asked the opposition to postpone planned protests.
"I present these concessions in the interests of the country. The interests of the country come before our personal interests," Saleh said.
"No extension, no inheritance, no resetting the clock," he added, making reference to ruling party proposals to institute term limits that had been seen as allowing him to run again.
Poland warns Belarus leader: Change or risk coup
By MONIKA SCISLOWSKA - AP via Forbes.com
WARSAW, Poland -- Poland's foreign minister warned Belarus' autocratic president on Wednesday that he risks being overthrown by his own people if they decide to follow the example of protesters in Tunisia and Egypt.
"Soon a jet plane will have to be kept on standby in Minsk," Radek Sikorski said, referring to the capital of Belarus. "You are losing ... sooner or later you will have to flee your own country, your own people."
Sikorski spoke at international donors' conference in Warsaw where governments pledged millions in aid for the democratic opposition in Belarus, which faces censorship and the constant threat of arrest under President Alexander Lukashenko.
Irish bank flight quickens despite EU rescue Deposit flight from Irish banks accelerated sharply at the end of last year on fears of political turmoil, suggesting that the EU-IMF rescue package for Ireland failed to restore confidence.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Irish central bank data showed losses of €40bn (£34bn) in deposits from the key banks in December, compared with Û27bn a month earlier. Over the past year Irish lenders have hemorrhaged €110bn, equal to 60pc of gross national product. "Would I want to leave money in an institution where I don't know who is making the rules?" said Gary Jenkins from Evolution Securities.
On Wednesday, Standard & Poor's cut Ireland's sovereign rating one notch to A-, citing a "weaker economic outlook, reduced prospects for bank earnings and funding difficulties of domestic banks". It also downgraded Bank of Ireland, Allied Irish, Anglo Irish and Irish Life, questioning "both the ability and willingness of the Irish government" to keep propping up lenders. The quartet remain "highly reliant on central bank funding" and have been unable to raise market funds despite state guarantees.
Nothing Is Stable Anymore
TheEconomicCollapseBlog.com
The world is becoming a very unstable place, and the pace at which things are changing all around us has become absolutely mind-numbing. In fact, change has become one of the only constants in today's world. Once upon a time, people in the United States could actually make 20 or 30 year plans and feel confident about achieving them. But now, nothing is stable anymore. The financial crisis showed us that some of the biggest corporations on the globe can collapse in a single day. The events of the past few weeks have shown us that entire governments can be brought down in a single week. We live in a world where there are now very few "guarantees" that you can count on. One of the only things that is guaranteed is that technology and information will continue to grow at exponential speeds. This year, the total amount of information produced on electronic devices around the globe is projected to be more than a zettabyte. A zettabyte is equivalent to one sextillion bytes. In other words, imagine a one with more than 21 zeroes following it.
Former Treasury Secretary is A-Scared; Should You Be?
Brian Doherty - Reason.com
At the Davos World Economic Forum, the insider's insider's insider's secret backdoor path to power, Robert Rubin, talks crazy scary talk that nutcase goldbugs have been warning for years, but never mind them, mind him. Quoted from the Economic Policy Watch blog, liberated from behind Financial Times's paywall. (All the bolding is thanks to Econ Policy Watch):
The risks of our fiscal position are serious and multiple. And while these risks become more severe over time as our debt position worsens, all of these either have begun to materialise or could do so in the near term....
To be specific about the risks, deficits could crowd out private investment, which could choke off a private investment recovery. Moreover, the capacity for public investment is already diminishing, and could be exacerbated by growing entitlement costs and mounting interest payments... Most dangerously, there is a risk of disruption to our bond and currency markets from the fear of much higher interest rates due to future imbalances or from fear of inflation because of efforts to monetise our debt. The result could be significant deficit premiums on bond market interest rates, seriously impeding private investment and growth or, worse, acute bond market declines that cause an economic crisis. This could also start in the currency markets.
Trump: Things in US Could Get Worse, Buy Gold
By Greg Brown and Kathleen Walter - MoneyNews.com
Billionaire developer and potential presidential candidate Donald Trump predicts the price of gold will continue to climb because Americans have no confidence in President Barack Obama. In an exclusive interview with Newsmax.TV, he also warned that trouble looms for the U.S. economy.
"If oil prices are allowed to inflate and keep inflating, if the dollar keeps going down in value, I think there's a very distinct possibility that things could get worse."
But Trump said that he sees one bright spot in the still-struggling U.S. housing market - this is a great time for Americans to buy a house.
Jim Cramer: Buy Gold Before Price Spikes Amid Mining-Stock Rally
By Dan Weil - MoneyNews.com
Star CNBC commentator Jim Cramer says gold is headed higher. Why? Because gold-mining stocks have begun rebounding, he says.
"Gold stocks peaked 30 days before gold peaked," Cramer said on CNBC, referring to gold's record high of $1,432.50 an ounce Dec. 7.
"Now look at gold stocks going up, even though gold (itself) is doing nothing," he says. Gold currently trades around $1,339.
"These stocks have always been a leading indicator of the actual physical metal," Cramer says. "I want to buy the GLD off the move." He was referring to the SPDR Gold Shares exchange-traded fund, which is made up of physical gold.
Silver Eagle Sales Hit Their Second-Highest Ever
By Addison Wiggin - DailyReckoning.com
02/02/11 Baltimore, Maryland - We knew it would be a recordÉ But the question remained: by how much?
The US Mint sold 6,422,000 Silver Eagles in January 2011 - half as many as were sold in the previous record-setting month of November 2010.
There are a few nattering nabobs who say the figures are skewed because the Mint credited some December sales to January. So what? If you add up December and January sales and average them, you still get the second-highest monthly total everÉright behind November 2010.
Fact is demand is intense.
They Missed the Money
By Frederick Sheehan - DailyReckoning.com
02/02/11 North Weymouth, Massachusetts - The Federal Crisis Inquiry Commission (FCIC) had as much chance of satisfying the public as the Warren Commission did of closing the debate on the Kennedy assassination. The FCIC published its report on January 27, 2011. This was the "Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States." The FCIC itself could not come to a conclusion. The Democrats wrote for the majority, the Republicans for the minority, and a think-tank fellow motored off on a tangent of his own.
By the way, these conclusions, cleaved by the politics of the season, demonstrate the immaturity of Washington. The members could not forsake their hobbyhorses to address the time bomb that, unaddressed, will explode. A half-century's accumulation of bad debt tumbled over in 2008 and a much larger mountain of waste and ruin lies ahead.
State of the Union Address Sparks Debate Over Government Role in America
BY KERRI SHANNON, Associate Editor, Money Morning
U.S. President Barack Obama spoke to the country on Jan. 25 in the annual State of the Union address, an assessment of the nation's biggest issues.
Before the speech, many analysts were afraid President Obama would make broad optimistic statements - while offering no concrete plans for improvement.
White House Senior Adviser Valerie Jarrett said last week that one of President Obama's main messages would be to highlight the new "bipartisan spirit" in Washington.
Money has become the economic and political wedge for profound changes in American society.
Perhaps the most deceptive policy tool to lessen debt loads is the "negative" or exceedingly low real interest rate that central banks impose on savers and debt holders.
Old-fashioned gilts and Treasury bonds may need to be "exorcised" from model portfolios and replaced with more attractive alternatives both from a risk and a reward standpoint.
There are lots of ways to describe money: moolah, lean green, dinero É I memorized one definition of "money" from an economic textbook way back in 1966: "A medium of exchange and a store of value," it said. Well, yes, I suppose, although it failed miserably in the latter capacity in subsequent years. My primer also neglected to mention the increasingly dominant function that money was to assume in a finance-oriented, capitalistic system: Money can be used to make money. Not that interest rates and biblical usury aren't millenniums old. I remember a story from Sidney Homer's history of finance that described how a BC-era borrower would be forced to turn over his wife as collateral upon default - wondering at the time whether that might be an incentive for a future Mesopotamian debt bubble! Still, my textbook was nowhere near contemplating the half century of financial "innovation" that was ahead and how money and its levering was to be the foundation for much of America's prosperity.
Tracing the Fed's Vital Role in the Decline of the US Dollar
By Eric Fry - dailyreckoning.com
02/02/11 Laguna Beach, California Ð In 2013, we Americans will commemorate a century of wealth destruction in the United States Ð the Federal Reserve will be 100 years old.
In 1913, the Federal Reserve Act became law Ð granting sole authority to the Federal Reserve to "issue legal tender." Armed with its new power and its good intentions, the Fed embarked on a 98-year process of currency debasement. That's not what the Fed set out to do; it's just what it did do.
In the early days of the Federal Reserve, this monetary authority enjoyed the support of a gold standard. Few Americans doubted that the Fed's new greenbacks would be as good as gold. As such, gold coinage and paper dollars intermingled effortlessly in the US economy for most of the Fed's first two decades.
*****
Senate repeals part of health care law
By JENNIFER HABERKORN - Politico.com
The Senate voted Wednesday for the first time to repeal a piece of President Barack Obama's health care overhaul, rolling back a new tax reporting requirement that's been universally panned by business owners. The amendment to repeal the 1099 reporting requirement passed 81-17 with broad bipartisan support.
The provision was one that Obama identified in his State of the Union speech as something that Democrats were willing to change.
The Senate voted several times last year on repealing the requirement, but all the attempts failed amid partisan bickering over how to pay for it. Republicans made an attempt to repeal the provision by taking money from the health reform law's prevention and wellness fund. Democrats tried to repeal it without paying for it.
Lawmakers press Supreme Court for verdict on healthcare law
By Alexander Bolton - TheHill.com
Democratic and Republican lawmakers believe the Supreme Court will ultimately decide the fate of President Obama's healthcare law, and some of them are already exerting pressure on the justices.
The high-stakes lobbying comes as the Senate is scheduled to vote on a healthcare repeal bill Wednesday. That effort is expected to fall short, and the spotlight of the intense debate is expected to pivot back to the judicial branch.
Sen. Orrin Hatch (Utah), who served as senior Republican on the Senate Judiciary Committee during the confirmations of Justices Ruth Bader Ginsburg and Stephen Breyer, said, "I would hope the four so-called liberals on the court would recognize that personal liberty is involved here."
Senate moves closer to deal repealing 1099 provision in healthcare law
By Pete Kasperowicz - TheHill.com
The Senate this week seems closer than ever to approving a repeal of the widely opposed 1099 language in last year's healthcare law, with Democrats and Republicans prepared to support nearly identical repeal language.
Sen. Mike Johanns (R-Neb.) re-introduced repeal language this week as an amendment to the Federal Aviation Administration (FAA) authorization bill. His amendment would repeal the 1099 requirement to file tax forms for transactions worth $600 or more each year with a company, and ask the Office of Management and Budget to rescind $39 billion in discretionary funds in order to offset the cost of repeal.
Internet runs out of IP addresses as devices grow Internet addresses run low as Asia and smart phones hit the Web. Authorities plan strategy to open up space
BY PETER SVENSSON, ASSOCIATED PRESS - Salon.com
The spread of Internet use in Asia and the proliferation of Internet-connected phones worldwide are causing the Internet to run out of numerical addresses, which act as "phone numbers" to ensure that surfers reach websites and e-mails find their destination.
The top-level authority that governs such addresses will distribute the last batches on Thursday, two people with knowledge of the situation told The Associated Press. They spoke on condition of anonymity because a formal announcement wasn't planned until Thursday.
The Daily launch - live coverage
Rupert Murdoch's 'iPad newspaper' is unveiled in New York
By Josh Halliday - guardian.co.uk
A short rundown of The Daily, News Corp's just-launched iPad newspaper:
Subscription costs $0.14 a day, $0.99 cents a week or $39.99 a year
The Daily will publish up to 100 pages a day on six areas - news, sport, gossip and celebrity, opinion, arts and life, and apps and games.
Most of the articles can be shared online, through Twitter, Facebook and the like. And articles will link out to other sites on the web....
"In short," Murdoch says, "we believe The Daily will be the model for how stories are told and consumed in this digital age."
'The Daily' will be first iPad-only newspaper
By Athima Chansanchai - MSNBC.com
Don't say an old dog can't learn new tricks.
Rupert Murdoch, head honcho of the News Corp. and Fox News, is investing $30 million and a staff of about 100 to create and run The Daily, the first newspaper available only on the iPad and other tablet devices, scheduled to roll out early next year.
The Daily will still retain some of the more archaic aspects of a print newspaper in that it will be produced into the evening and "printed" in the morning. Updates will come, but not like we're used to with news websites now.
Even more bizarre: "The Daily will have no inbound links from other sites, and nothing outbound either."
For the most part, it will produce original content, although Fox Sports will provide some video. Murdoch is bringing some heavy hitters into the new project: The New Yorker music criticÊSasha Frere-Jones, ABC News TV producer Steve Alperin and Page Six's Richard Johnson.
While millions of readers were lost when News Corp. moved The Times of London and The Sunday Times behind a pay wall in July, the Daily can start with a clean slate having never been free. It will have an "easy payment" format.
The Daily Is a Dinosaur
Jesse Walker - Reason.com Mark Potts slams Rupert Murdoch's heavily hyped new iPadpaper, The Daily: There are virtually no links in The Daily. Its interaction with social tools like Twitter and Facebook is perfunctory, at best. There are symbols hinting at Facebook, Twitter or e-mail sharing, but when you tap them a warning pops up that says, "This article is only available in The Daily app." Gee, helpful. Comments seem to be attached to pages, not individual stories. The interface is pleasant, but a little clunky and stiff. And don't even think about aggregating content from The Daily. It's largely verboten....
Maybe most incredibly, The Daily truly is... daily. It gets published in the morning, and that's basically it. While the world is riveted today by the violence in Cairo, the premier issue of The Daily leads with an outdated story about yesterday's peaceful million-man march in Tahrir Square. This is intentional, apparently. While The Daily's app supports more frequent updates, PaidContent quotes The Daily's editor, Jesse Angelo, as saying, "I don't want another site that's constantly updating." (Okaaay. Good luck with that.)
WikiLeaks: US and China in military standoff over space missiles The United States threatened to take military action against China during a secret "star wars" arms race within the past few years, according to leaked documents obtained by The Daily Telegraph.
By Tim Ross, Holly Watt and Christopher Hope - Telegraph.co.uk
The two nuclear superpowers both shot down their own satellites using sophisticated missiles in separate show of strength, the files suggest.
The American Government was so incensed by Chinese actions in space that it privately warned Beijing it would face military action if it did not desist.
The Chinese carried out further tests as recently as last year, however, leading to further protests from Hillary Clinton, the US Secretary of State, secret documents show.
Beijing justified its actions by accusing the Americans of developing an 'offensive' laser weapon system that would have the capability of destroying missiles before they left enemy territory.
'Al-Qaida on brink of using nuclear bomb'
By Heidi Blake and Christopher Hope, The Daily Telegraph - vancouversun.com
Al-Qaida is on the verge of producing radioactive weapons after sourcing nuclear material and recruiting rogue scientists to build "dirty" bombs, according to leaked diplomatic documents.
A leading atomic regulator has privately warned that the world stands on the brink of a "nuclear 9/11".
Security briefings suggest that jihadi groups are also close to producing "workable and efficient" biological and chemical weapons that could kill thousands if unleashed in attacks on the West.
Thousands of classified American cables obtained by the WikiLeaks website and passed to The Daily Telegraph detail the international struggle to stop the spread of weapons-grade nuclear, chemical and biological material around the globe.
Muslim Brotherhood: 'Prepare Egyptians for war with Israel'
By YAAKOV LAPPIN - JPost.com
A leading member of the Muslim Brotherhood in Egypt told the Arabic-language Iranian news network Al-Alam on Monday that he would like to see the Egyptian people prepare for war against Israel, according to the Hebrew-language business newspaper Calcalist.
Muhammad Ghannem reportedly told Al- Alam that the Suez Canal should be closed immediately, and that the flow of gas from Egypt to Israel should cease "in order to bring about the downfall of the Mubarak regime." He added that "the people should be prepared for war against Israel," saying the world should understand that "the Egyptian people are prepared for anything to get rid of this regime."
Egypt's Islamist Riddle Muslim Brotherhood Says It Seeks Limited Role, but Its Radical Roots Spur Questions -- By KEITH JOHNSON in Washington and MARC CHAMPION in Alexandria, Egypt
The decision by Egyptian President Hosni Mubarak to not stand for re-election forces the U.S. to confront a thorny dilemma - how to deal with Egypt's Muslim Brotherhood.
The 83-year-old Islamic movement, Egypt's biggest opposition bloc, played a subdued role in the uprising. But its past performance in parliamentary elections and its dedicated following mean it will be a force to be reckoned with as Egypt moves toward open elections.
Newly minted Vice President Omar Suleiman has indicated to U.S. diplomats that he wants any talks with the opposition to include the Brotherhood, U.S. officials say. That would mark a fundamental shift for Egypt's government, which outlawed the group in 1954 and says the Brotherhood is a threat to the country's stability.
ISRAEL: Egypt backlash, the view from next door
Batsheva Sobelman in Jerusalem - LATimes.com
Leaders, media, academics and arm-chair politicians (basically most Israelis) continue to monitor the upheaval rocking its big neighbor, just one door down. If there's a theme de jour, it seems to be "careful what you wish for."
Monday, during a news conference with visiting German Chancellor Angela Merkel, Prime Minister Benjamin Netanyahu noted that while the main cause of unrest doesn't stem from radical Islam, such forces could take over a country in turmoil. The next day he said -- in a closed-door diplomatic-security consultation -- that Israel supports advancing free and democratic values in the Middle East, but warned that neither would be achieved if radical forces are allowed to exploit the processes and take power.
IMF raises spectre of civil wars as global inequalities worsen The International Monetary Fund (IMF) has warned that "dangerous" imbalances have emerged that threaten to derail global recovery and stoke tensions that may ultimately set off civil wars in deeply unequal countries.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Dominique Strauss-Kahn, the IMF's chief, said the economic rebound across the world is built on unstable foundations, with many rich nations still strapped in job slumps while the rising powers of China, India and Brazil already facing the threat of overheating. "It is not the recovery we wanted. It is a recovery beset by tensions and strain, which could even sow the seeds of the next crisis," he said.
"Global unemployment remains at record highs, with widening income inequality adding to social strains," he said, citing turmoil in North Africa as a prelude to what may happen as 400m youths join the workforce over the next decade. "We could see rising social and political instability within nations - even war," he said.
Obama: Egypt's transition to democracy 'must begin now'
By ASSOCIATED PRESS - JPosy.com
After Mubarak announces he won't seek re-election, Obama speaks to Egyptian leader, says: "He recognizes that the status quo is not sustainable and that change must take place."
WASHINGTON - US President Barack Obama said Tuesday that a transition to democracy in Egypt "must begin now" and should lead to opposition participation in free and fair elections.
Speaking after Egyptian President Hosni Mubarak's announcement Tuesday that he will not seek reelection in September, Obama said he had called Mubarak after the speech to discuss the situation in Egypt.
"He recognizes that the status quo is not sustainable and that change must take place," Obama said at the White House. He said he told Mubarak of "my belief that an orderly transition must be meaningful, it must be peaceful, and it must begin now."
EGYPT: ElBaradei says Mubarak needs to leave now
hand power to caretakers
By Carol J. Williams - LATimes.com
Egyptian diplomat and emerging opposition leader Mohamed ElBaradei told news networks Tuesday that President Hosni Mubarak didn't go far enough to appease demonstrators with his promise not to seek reelection in the fall.
Protesters have been demanding an end to Mubarak's 30-year rule and met his vow to fulfill his current term in office with shouts of "Leave, leave!" Tens of thousands remained in Cairo's central Tahrir Square to listen to the president's address after more than 200,000 marched in demand of his ouster earlier in the day.
How Cairo, U.S. Were Blindsided by Revolution
By CHARLES LEVINSON, MARGARET COKER And JAY SOLOMON - WSJ.com
Two months before Egypt exploded in popular rage, Secretary of State Hillary Clinton met Ahmed Aboul Gheit, Egypt's foreign minister, in her seventh-floor offices in Washington.
U.S. officials were miffed that Cairo was ignoring their pleas to make coming legislative elections more credible by allowing international ballot monitors.
But after the meeting, neither Mrs. Clinton nor Mr. Aboul Gheit mentioned that disagreement when they spoke publicly. Mrs. Clinton praised the longstanding partnership between the U.S. and Egypt as the "cornerstone of stability and security in the Middle East and beyond."
IMF Lays Out the Challenges Ahead for Global Economic Recovery
By JOSEPH LAZZARO - DailyFinance.com
The performance of national leaders so far in combating the global financial crisis, as analyzed by the International Monetary Fund in its latest World Economic Outlook, can be roughly equated to a "good first half" from a football team. However, as this year's Super Bowl participants, the Green Bay Packer and the Pittsburgh Steelers, would certainly attest, it takes more than a strong half to win a football game, and the IMF is likewise reminding policymakers that they have to follow through and finish the job.
According to the IMF, the economic recovery in both developed and emerging markets is accelerating, with the stronger GDP growth decreasing or eliminating the output gap (unused production capacity) in emerging markets. That's the first half of the game.
How could you support a revolution in Egypt that you know will end with the Muslim Brotherhood in power, the Israel-Egypt peace treaty dead, and the further empowering of Hamas in Gaza and even in the West Bank?
Well, I don't know that all these things are inevitable. The Muslim Brotherhood might not end up in power; just as in Pakistan, the Islamists in Egypt represent only a minority of citizens. Which is not to say that the Brotherhood couldn't wind up in power, but it's too early to call the rise of the Brotherhood inevitable. If the Brothers do end up in power, then the Israeli-Egyptian peace treaty, which is responsible for 30 years of stability in the eastern Mediterranean, would be in mortal danger, but even if Egypt were to break relations with Israel, this does not mean that war would necessarily follow. And what is more likely is that the Egyptian Army continues to play an important and stabilizing role, and the Egyptian Army, of course, depends on the United States for much of its budget, and it does not want to lose access to American-made weapons systems, which is what might happen if Egypt were to abrogate the peace treaty.
Egyptians promote general mobilisation to overthrow Mubarak
Agencies/Patria Latina - Pravda.ru
The duel between Egyptian President Hosni Mubarak and the population that demands his resignation since last week on Tuesday faces a litmus test, with the convening of protests that aim to gather one million people. Thousands of protesters arrived at dawn in the center of Cairo, where many of them spent the night despite the curfew. "Out Mubarak," they shouted in Tahrir Square (Liberation Square), the epicenter of the revolt against the regime.
At the site, Egyptians of all ages were concentrated, from seniors to children who accompany their parents. All bring banners and placards with slogans such as "The people dismissed the president." Between the protesters, seven men dressed in white and also with white bands on their heads - as "jihadists" - shouting in Arabic and English: "I am ready to die for my Egypt." Many people displayed posters with the picture of Mubarak hanging and the phrase: "His head will roll."
American-Israeli Policy Tested by Arab Uprisings
By William Pfaff - Truthdig.com
The events in the Arab world during the past three weeks have ended the era of American-Israeli domination/intimidation of the region. This is all but universally acknowledged outside the United States, although many in Washington refuse to admit it - as does, with considerable concern, the Israeli government in Jerusalem.
The spectacle of confused and confusing administration and State Department responses to the popular uprisings in Tunisia and Yemen, and to the huge mass movement in Egypt, protected by the Egyptian army, as well as prudent prime ministerial change in Jordan, suggests that, until now, no one in an American government office has considered - or been allowed to consider, more likely - that this day would inevitably come.
Egypt Crisis and Oil
By Herman Cain - The American Spectator.org
Egypt is in the midst of what can only be described as a political and social meltdown. While elected officials and diplomatic leaders from the U.S. determine our appropriate course of action, we are reminded that the stability enjoyed by Americans is simply not the norm in other parts of the world.
While our thoughts and hearts go out to the Egyptian people, we as a nation must examine how their affairs deeply affect the vital components of our economy and our way of life. One of the most apparent consequences of such turmoil is the impact on our energy supply and consumption.
Ron Paul: Cut Off All Foreign Aid to Egypt, Saudi Arabia,
And All the Rest!
Mubarak says he won't seek reelection but will stay in office 'for the next few months' Egyptian President Hosni Mubarak, in a late night address, says he did not intend to remain in office. It is not clear whether he plans to stay in power until September elections. His announcement is unlikely to end calls for him to step down immediately.
By Jeffrey Fleishman and Ned Parker, Los Angeles Times
Reporting from Cairo - Egyptian President Hosni Mubarak, unable to calm a week of unrest and unprecedented protest against his government, announced Tuesday night that he would not seek reelection, but indicated he would remain in power "for the next few months."
"I tell you in all sincerity that I did not intend to seek reelection," Mubarak said in a national address on state television. "But I am keen to end my presidency in a manner that will enable whoever succeeds me to take over the country in a stable climate."
Mubarak was not clear if he would stay in power until the September presidential election.
One million Egyptians clamour for Mubarak to go
By Edmund Blair - Reuters Africa
CAIRO (Reuters) - At least one million people rallied across Egypt on Tuesday clamouring for President Hosni Mubarak to give up power, piling pressure on a leader who has towered over Middle East politics for 30 years to make way for a new era of democracy in the Arab nation.
Cairo's Tahrir (Liberation) Square was jammed with people ranging from lawyers and doctors to students and jobless poor, the crowd spilling into surrounding streets.
Crowds also demonstrated in Alexandria, Suez and in the Nile Delta in the eighth and biggest day of protests against Mubarak by people fed up with years of repression, corruption and economic hardship.
40 Percent Of Egyptians Live On 2 Dollars A Day Or Less And The Global Elite Like It That Way
EndOfTheAmericanDream.com
After thousands of years of "progress" and "societal evolution", how is it possible that most of the world is still living in soul crushing poverty? In recent days, it has been reported all over the media that 40 percent of Egyptians live on 2 dollars a day or less. Sadly, there are lots of other countries where even larger percentages of the population live in abject poverty. So how in the world did this happen? We can send men into space, we can send electronic communications to the other side of the globe in an instant and we can destroy entire cities with a single bomb and yet we can't figure out how to set up an economic system that will provide jobs, food and housing for everyone on the planet? That doesn't seem right. That doesn't seem right at all.
Egypt Protests:
Will the Real Mohammed ElBaradei Please Stand Up?
By Anne Bayefsky - FoxNews.com
In the name of democratic reform, Mohammed ElBaradei is doing his best to appear as the annointed one to succeed Egyptian President Hosni Mubarek, should the government fall. In reality, ElBaradei has more in common with Iranian demagogue Mahmoud Ahmadinejad than anything remotely resembling democracy. He is the former Director-General of the International Atomic Energy Agency (IAEA), where his primary legacy was running interference for Iran and ensuring that Iran is now on the verge of acquiring nuclear weapons.
Year-after-year for a decade, ElBaradei used his position at the IAEA to stall for time on behalf of Iran. In September 2005 ElBaradei helped push the issue off the Security Council table and bragged: "I am encouraged that the issue has not been referred to the Security Council, precisely to give time for diplomacy and negotiation." Typical of his foot-dragging was his February 2006 report: "Although the Agency has not seen any diversion of nuclear material to nuclear weapons or other nuclear explosive devices, the Agency is not at this point in time in a position to conclude that there are no undeclared nuclear materials or activities in Iran. The process of drawing such a conclusion ... is a time consuming process."
Huge sums leaving Egypt?
email to Max Keiser...
Hi Max, Stacy,
I used to work with Greg Palast he can vouch for me.
I've been given this information with a view to getting it out on the internet so that people can use it as the basis for further research. The source of the information is based in Egypt and understandably they want to remain anonymous. Mainstream media outlets have been approached but cannot take up the story because the source insists on remaining anonymous and refuses an interview in which their voice/image is distorted or hidden. I'm approaching you because you are not constrained in the same way as the mainstream media.
My contact details are at the end of this email.
Information is as follows:
$10 billion of the Mubarak's money has been transferred to Switzerland and France.
Walid Shash and Omar Tantawy are chief handlers of Mubaraks' loot for transfer to Switzerland and France.
The transfers have been taking place for the last 7 years and have intensified during the last 3....
Gerald Celente on Goldsek Radio Jan. 28, 2011
Egypt unrest leads to re-routing of container ships
BBC.co.uk
The unrest in Egypt has led to some container ships being re-routed as vessels look to bypass Egyptian ports and stop at other countries to refuel.
South Korea's Hanjin Shipping said it was re-routing some of its ships as its operations at Port Said and Alexandria were affected by a lack of staff.
On Monday, DP World and Danish shipping firm AP Moller-Maersk both suspended their Egyptian port terminal operations because of the unrest.
The Suez Canal remains open.
Geopolitical Unrest and World Oil Markets
by James Hamilton - OilPrice.com
I begin with a timeline, if not to connect the dots, at least to collect the dots in a single list.
Sudan, Jan 9-15: Country holds a referendum whose apparent outcome will be a split of South Sudan into its own a separate country.
Lebanon, Jan 12: Key cabinet ministers resign in protest against impending indictments from a U.N.-backed investigation into the 2005 assassination of former prime minister Rafiq al-Hariri, toppling the governing coalition. U.S. Secretary of State Hillary Clinton offered this assessment:
We view what happened today as a transparent effort by those forces inside Lebanon, as well as interests outside Lebanon, to subvert justice and undermine Lebanon's stability and progress.
Tunisia, Jan 14: President Ben Ali flees the country in response to widespread protests.
Iraq, Jan 17-27: Over 200 people killed in a spate of recent bombings, a sharp and tragic increase from the recent norm.
Egypt, Jan 29: Cairo appears to be near anarchy as a result of an uprising against President Mubarak.
Yemen, Jan 29: Demonstrations and rallies have resulted in clashes with police, with unclear implications at this point for the stability of the regime.
An optimist might see the common thread in many of these developments to be the realization across parts of the Arab world of the power of popular will to overthrow dictators, the first step toward democracy and a better life for the people. A pessimist might see in at least some of these situations deliberately orchestrated chaos for purposes of seizing power by a new group of would-be ruthless leaders. A realist might acknowledge the possibility of both factors in play at once, and worry that ideologically motivated uprisings have often turned out to be usurped by groups with their own highly anti-democratic agenda. In the event that some of the transitions of power prove to be more chaotic than peaceful, let me comment on their potential to disrupt world oil markets.
Jordan's king dismisses government, appoints new PM
By the CNN Wire Staff
(CNN) -- The king of Jordan dismissed his government Tuesday and appointed a new prime minister with orders to implement political reform.
The dismissal follows several protests calling for change in Jordan -- protests that echo demonstrations that have swept across North Africa and the Middle East in the last few weeks.
King Abdullah II asked Marouf Al Bakhit to form a government in Jordan that will implement "genuine political reform," the Royal Court said in a statement.
The government will "take practical steps, quick and concrete, to launch a process of genuine political reform" and "comprehensive development," according to a letter from the king to Al Bakhit. It also will act to strengthen democracy, the letter said.
The Food Bomb
By Barry Lando
On the face of it, the protests currently sweeping across the Arab world have been driven by overwhelmingly leaderless, frustrated, impoverished, unemployed youths battling geriatric dictatorial regimes that are supported by pampered militaries - and the United States. Fueling all these protests, from Egypt to Yemen to Jordan to Tunisia to Algeria, is another common factor, one that also fueled the French Revolution: rocketing food prices.
A perfect storm of natural disasters around the globe, rising oil prices and rapacious speculators have produced the current dramatic rise in food prices, but even had these events not occurred, food prices would be spiraling upward, and roiling the planet, no matter who was governing.
Mubarak's Grip on Power Is Shaken
By DAVID D. KIRKPATRICK and ALAN COWELL - NYTimes.com
CAIRO - In a test of wills that seemed to be approaching a critical juncture, hundreds of thousands of people crammed into Cairo's vast Tahrir Square on Tuesday, seeking to muster a million protesters demanding the ouster of President Hosni Mubarak.
Their mood was jubilant, as though they had achieved their goals, even though Mr. Mubarak remained in power a day after the Egyptian military emboldened the protesters by saying they would not use force against them and the president's most trusted adviser offered to negotiate with his adversaries.
Push Has Now Come to Shove
By Eugene Robinson
The Obama administration has done a creditable job of gently edging Egyptian President Hosni Mubarak toward some sort of gilded exile. Now it's time to push. Hard.
Cherished ideals of democracy and cold exigencies of realpolitik both demand that U.S. officials do whatever is in their power - which, frankly, may not be much - to hasten Mubarak's departure. Help him fuel the presidential jet and load the gold bullion, if necessary. Send him a postcard from the French Riviera saying "Wish you were here."
The Importance of Demographics in a Cultural Revolution
By Joel Bowman - DailyReckoning.com
02/01/11 Buenos Aires, Argentina - "A kingdom founded on injustice never lasts" - Lucius Annaeus Seneca (tutor and later advisor to emperor Nero) Tunisia... Algeria... Yemen... Egypt... Jordan... the road to $200 oil... And that's just for starters!
Tempers are flaring and kingdoms are toppling across the Arab world this week as millions of discontented youths take to the streets to demand the overthrow of their respective leaders.
First it was Tunisia's dictator of 23 years, Zine El Abidine Ben Ali, who found his head squarely on the political chopping block. Following a spate of insuppressible food riots across the country, the tiny nation's second president has (after being denied entry to France) since fled to Saudi Arabia, where he is currently residing... although not before his wife, Leila Trabelsi, casually rocked up to Tunisia's central bank to collect 1.5 metric tons of the country's gold - roughly $66 million worth.
Gold ends firmer amid weaker US Dollar
By Jim Wyckoff - CommodityOnline.com
(Kitco News) - Comex gold futures prices ended modestly higher Monday on short covering following recent selling pressure and on a lower U.S. dollar index. Traders perceive there has not been escalation in the Egypt civil unrest, and that also limited fresh safe-haven buying interest in the yellow metal. Comex April gold last traded up $3.70 at $1,338.20 an ounce. Spot gold last traded up $4.40 at $1,338.00.
The U.S. dollar index traded solidly lower Tuesday and hit a fresh nearly three-month low. Ideas the European Union central bank will raise interest rates in the near term weighed on the greenback. The technically weakened U.S. dollar index is in a strongly bearish near-term technical posture, which is an underlying bullish factor for the precious metals. However, gold bulls have been disappointed recently that the yellow metal has not seen more upside support from the weaker dollar index. If the dollar index continues to weaken, look for losses in the gold market to at least be limited.
Egypt's Revolution and Inflation
BY STEVE SAVILLE
Unless you've been unconscious for the past few days you are probably aware that the situation in Egypt is becoming increasingly precarious. Increasingly precarious, that is, for Egypt's government (the dictatorship of Hosni Mubarak). Inspired by the fall of Tunisia's dictatorship two weeks ago, Egyptians have taken to the streets en masse in an effort to bring Mubarak's thirty-year rule to an end. Predictably, the Egyptian government's response to the protests has been draconian. For example, police have assaulted protestors with tear gas, water cannons and rubber bullets, the military has been deployed to assist the police and to help enforce a curfew, and the internet has effectively been shut down.
UK economy's shock GDP fall reignites fears of double-dip
Almost a year to the day since Britain pulled out of the longest and deepest recession since the Second World War, the Office for National Statistics revealed the economy had swung back into contraction.
By Emma Rowley - Telegraph.co.uk
The biggest forecasting miss in memory - the consensus was for the economy to grow by 0.5pc, instead of which it shrank by that amount - caused waves of alarm in the markets and raised a huge question mark over what is happening in the UK.
"Double-dip!" was the cry from some observers, "Don't panic!" the call from other quarters, including, to no one's surprise, the Government.
The question is, does the GDP figure merely show that the coldest December in 100 years took a deep, but temporary toll, or signal something more serious - that the UK risks sliding back into recession?
Peter Schiff: FCIC is a sham!
Swiss Banks in for a Pounding Over Banking Secrecy -
Why you Should Go Long Gold
by Bruce Krasting - OilPrice.com
The blow up in Egypt is going to create ripples all over the globe. It will certainly be disruptive for equities and the dollar. It will influence global bond yields and the PM markets. The oil market could be in for a short-term shock. It could have a significant affect on European GDP prospects. So there is a lot of uncertainty. I will make only one forecast of the lasting impacts of what is unfolding. Swiss banks and the Swiss government are in for another pounding over the issue of banking secrecy.
I'm sure that you have heard about the Tunisian leader who looted the vault for $60mm worth of gold as he headed (quickly) out the door. (ZH report) That story made a big stink. This story today from NZZ is going to smell worse:
US Dollar Index Is At Key Support
JESSE'S CAFÉ AMÉRICAIN
This index is particularly odd, if you take a look at the weighting of it as shown by the graphic on the chart.
It is difficult to imagine the euro continuing to strengthen against the dollar without howls from the German exporting companies. And the same can be said of the Yen.
FX trends often notoriously overshoot targets, since trading in forex, like so many other financial asset markets, a matter of the biggest boys sloshing the water around in the tub.
However, a break of this support could trigger another leg down. It will be interesting to watch the existing negative correlation between the dollar and US equities.
Ron Paul: Inflation is Theft!
Housing Armageddon: 12 Facts Which Show That We Are In The Midst Of The Worst Housing Collapse In U.S. History
TheEconomicCollapseBlog.com
We are officially in the middle of the worst housing collapse in U.S. history - and unfortunately it is going to get even worse. Already, U.S. housing prices have fallen further during this economic downturn (26 percent), then they did during the Great Depression (25.9 percent). Approximately 11 percent of all homes in the United States are currently standing empty. In fact, there are many new housing developments across the U.S. that resemble little more than ghost towns because foreclosures have wiped them out. Mortgage delinquencies and foreclosures reached new highs in 2010, and it is being projected that banks and financial institutions will repossess at least a million more U.S. homes during 2011. Meanwhile, unemployment is absolutely rampant and wage levels are going down at a time when mortgage lending standards have been significantly tightened. That means that there are very few qualified buyers running around out there and that is going to continue to be the case for quite some time to come. When you add all of those factors up, it leads to one inescapable conclusion. The "housing Armageddon" that we have been experiencing since 2007 is going to get even worse in 2011.
Sen. Merkley's Proposal Seeks to Bring Back First Time Homebuyer Tax Credits, Simplify Loan Mods and Provide BK Judges With Cram-Down Power -- NationalMortgageProfessional.com
Oregon Sen. Jeff Merkley has written a letter to President Barack Obama urging a greater focus on helping families stay in their homes and avoid foreclosure. In the letter, Merkley stressed that a strong housing market is essential to future job creation. Sen. Merkley noted the shortcomings of the Administration's Home Affordable Modification Program (HAMP) program in securing mortgage modifications for families facing foreclosure and called for a renewed focus on repairing the battered housing market. More than 300,000 foreclosures have been filed against American families each month for the past 20 months.
"It is a tragedy to see families forced from their homes, but fixing the housing crisis is about more than preventing foreclosures," wrote Sen. Merkley in the letter. "It is about providing stability for working families, creating jobs, and making our economy work for middle class families once again."
Nearly 11 Percent of US Houses Empty
By: Diana Olick - CNBC.com
I usually find the quarterly homeowner vacancy and homeownership report from Census pretty lackluster, but the latest one released this morning was anything but.
America's home ownership rate, after holding steady for a while, took a pretty big plunge in Q4, from 66.9 percent to 66.5 percent. That's down from the 2004 peak of 69.2 percent and the lowest level since 1998.
Homeownership is falling at an alarming pace, despite the fact that home prices have fallen, affordability is much improved and inventories of new and existing homes are still running quite high.
Bargains abound, but few are interested or eligible to take advantage.
Homeowners vs. The Banks
The Dylan Ratigan Show
More empty homes seen as homeownership falls
TheTruthAboutMortgage.com
More homes throughout the United States stood vacant as the homeownership rate continued its downward march, according to statistics released today by the Census Bureau.
The homeowner vacancy rate increased to 2.7 percent in the fourth quarter, up from 2.5 percent a quarter earlier, but steady compared to a year ago.
Meanwhile, the rental vacancy rate fell to 9.4 percent from 10.3 percent, signaling a move from home to apartment for many Americans hard-hit by the ongoing crisis.
The homeownership rate slipped to 66.5 percent in the fourth quarter, down from 66.9 percent a quarter earlier and 67.2 percent last year.
Health Insurance and the Constitution
By Clive Crook - The Atlantic.com
Judge Roger Vinson's ruling that the individual health insurance mandate is unconstitutional seems to have surprised a lot of commentators. I'm surprised they're surprised. The ruling may be wrong--ie, it may in due course be overturned by the Supreme Court--but it is perfectly intelligible, and oral argument had already suggested he was leaning this way. The only unexpected part of the ruling was his finding that the whole law is void, on the grounds that the mandate cannot be removed from the legislation without making the entire thing unworkable. But, as the ruling says, the legal non-severability of the mandate is something that the White House and Congress had previously insisted on, so you could say it was they who demanded the ruling's all-or-nothing character.
The Nuts and Bolts of the ObamaCare Ruling According to the government's theory, wrote Judge Vinson, 'the more harm the statute does, the more power Congress could assume for itself under the Necessary and Proper Clause.'
By RANDY E. BARNETT AND ELIZABETH PRICE FOLEY - WSJ.com
For months, progressives smugly labeled the legal challenges to ObamaCare as "silly" or even "frivolous." Today their confidence must be severely shaken.
Late Monday afternoon in Pensacola, Fla., U.S. District Court Judge Roger Vinson delivered the second major judgment that the centerpiece of the Patient Protection and Affordable Care Act - the "individual mandate" that forces Americans to buy health insurance whether or not they want it - is unconstitutional.
Obamacare's Final Chapter
By Robert M. Goldberg - The American Spectator.org
Judge Roger Vinson's summary judgment declaring the Patient Protection and Affordable Care Act unconstitutional goes beyond providing legal basis for overturning the requirement to buy healthcare. He demonstrates that the individual mandate is merely a means to solve a political problem created by the faulty drafting of Obamacare. In doing so, he forces the administration and the Supreme Court to overturn his decision by expanding the power of Congress in capricious ways neither the Founders intended or voters will be happy with.
Senate to vote on health care law repeal
By the CNN Wire Staff
Washington (CNN) -- Senate leaders from both political parties have agreed to hold a vote on legislation repealing President Obama's health care overhaul -- a top priority of GOP congressional leaders.
The vote probably will come either Tuesday or Wednesday.
The Republican-controlled House of Representatives has already passed a bill repealing the health care overhaul. Such a measure, however, has virtually no chance of winning approval in the Democratic-controlled Senate.
Senate Majority Leader Harry Reid, D-Nevada, said he wanted to get the repeal effort "out of the system" so the Senate could move ahead with other business. While all 47 Senate Republicans are expected to back a full repeal, the plan will not receive enough votes to clear the measure.
18 Ridiculous Statistics About Medical Bills Medical Debt And The Health Care Industry That Will Make You So Mad You Will Want To Tear Your Hair Out
EndOfTheAmericanDream.com
Do not read this article if you do not want to get angry. The health care industry in the United States has become one gigantic money making scam, and tens of millions of American families now live in great fear of illness and disease. Why are they so afraid? It is not because they fear the illnesses and diseases. Rather, the prospect of racking up tens of thousands (if not hundreds of thousands) of dollars in medical debt is enough to deeply frighten just about anyone. Today, virtually every single American is one really bad day from financial ruin. Did you know that medical bills are the number one reason for bankruptcy in the United States? Did you know that the vast majority of people that go bankrupt due to medical bills actually have health insurance? Meanwhile, there are a significant number of people that are becoming fabulously wealthy off of this system. Our "health care industry" has turned large numbers of doctors, lawyers, health insurance company executives and pharmaceutical company executives into multi-millionaires. The health care industry in the United States has been so corrupt and so greedy for so long that we don't even remember what a legitimate medical system even looks like anymore.
Obama Administration Says Health Care Law Is All Or Nothing. Judge Gives Them Nothing.
By Peter Suderman - Reason.com
When Judge Henry Hudson struck down the individual mandateÊlast year in response to Virginia's constitutional challenge to the health care overhaul, he left the rest of the law intact. In ruling on a separate multi-state challenge to the law today, Roger Vinson, a federal judge in Pensacola, Florida, went significantly further by striking down the entire law. Why the difference?
Because the law contained no severability clause, a contingency provision that would have protected the bulk of the law should one part be ruled unconstitutional, Vinson had to decide whether in striking the mandate he should also strike some or all of the rest of the law. Supreme Court guidance on laws lacking severability clauses suggests that judges should generally seek to excise as little of the law as possible, but also to ensure that if there is a remainder, it still serves the law's overall intended objective.
Obama Backs Down From Gun Control Showdown
By Bill Boyarsky
Eighteen years ago, the late Betty Friedan called her friend Ann Reiss Lane, a prominent Los Angeles civic activist. She was angry about the gun industry's latest outrage - high-fashion ads marketing guns with grips made for a woman's hand. Lane and Friedan brought together a few women and founded Women Against Gun Violence.
The group grew and has been instrumental in the passage of strong gun control laws in California and the city of Los Angeles. Last week, Lane watched President Barack Obama deliver his State of the Union address, waiting for him to say something about guns. "I waited through the entire speech, hoping," she told me. "I had expected he would move forward about the violence in the country, not only violent speech but violent action. I was totally disappointed, and I was a big Obama supporter."
"PRESIDENT OF THE WORLD: THE BILL CLINTON PHENOMENON"
By CHRIS MATTHEWS - MSNBC.com
NEW YORK - January 31, 2011 - There's not a single political figure today with the global reach and influence of Bill Clinton - a former U.S. President turned humanitarian and diplomat extraordinaire. No one else in today's political arena has the ability to command the attention of world leaders and organizations everywhere quite like he does. This Presidents' Day, MSNBC's Chris Matthews will take viewers behind the scenes of Clinton's life in the one-hour documentary "President of the World: The Bill Clinton Phenomenon." The special will air Monday, February 21, at 10 pm ET/PT.
Since President Clinton left office in January 2001, he's taken on a new and very successful role as an international humanitarian - his Clinton Global Initiative, Clinton Health Access Initiative, the William J. Clinton Foundation and countless other worthy efforts have made him a hero to peoples across the globe. Clinton's innate talent for diplomacy gained him international recognition in 2009 when he aided in the release of two imprisoned American journalists from North Korea. In the last year alone, he's provided invaluable political support to President Obama, hitting the campaign trail for countless Democratic candidates leading up to the November 2010 midterm elections.
The Internet Kill Switch - One Of The Favorite New Tools Of Tyrannical Governments All Over The Globe
TheEconomicCollapseBlog.com
This past week was a perfect example of how the "Internet kill switch" is rapidly becoming one of the favorite new tools of tyrannical governments all over the globe. Once upon a time, the Internet was a bastion of liberty and freedom, but now nation after nation is cracking down on it. In fact, legislation has been introduced once again in Congress that would give the president of the United States an "Internet kill switch" that he would be able to use in the event of war or emergency. Of course there would be a whole lot of wiggle room in determining what actually constitutes a true "emergency". The members of Congress that are pushing this "Internet kill switch" bill want the U.S. to become more like China in this regard. In China, the Internet is highly controlled, highly regulated and highly censored. In fact, China has shut down the Internet in entire regions when they have felt it necessary. So what Egypt did in shutting down the Internet this past week is not unprecedented - but it was quite shocking.
Underground world hints at China's coming crisis To understand how far ordinary Chinese have been priced out of their country's property market, you need to look not upwards at the Beijing's shimmering high-rise skyline, but down, far below the bustling streets where nearly 20m people live and work.
By Peter Foster and Zhang Wei in Beijing - Telegraph.co.uk
There, in the city's vast network of unused air defence bunkers, as many as a million people live in small, windowless rooms that rent for £30 to £50 a month, which is as much as many of the city's army of migrant labourers can afford.
In a Beijing suburb, beneath one of the thousands of faceless residential tower blocks that have carpeted the city's peripheries in a decade-long building frenzy, one of Beijing's "bomb shelter hoteliers", as they are known, agrees to show us his wares.
Passing under a green sign proclaiming "Air Defence Basement", Mr Zhao leads us down two flights of stairs to the network of corridors and rooms that were designed to offer sanctuary in the event of war or disaster.
Max Keiser: The Coming Global Currency & Goldman Sachs Latest Facebook Scheme 1/5
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Egypt Braces for 'Million-Man March' as Army Pledges Restraint
VoANews.com
Egypt's military says it recognizes the "legitimate demands" of the Egyptian people, and has pledged not to fire on protesters who are expected to fill central Cairo Tuesday for a "million-man march" on President Hosni Mubarak's palace.
A general strike also is called for Tuesday, and a second massive protest is planned in the northern port city of Alexandria.
National train services were cancelled Monday, in what some consider an attempt by authorities to prevent rural residents from joining the urban protests. An unprecedented Internet cutoff remained in place for a fifth day Tuesday.
US Dismissive of New Egyptian Government
VoANews.com
As world leaders closely watch the turmoil in Egypt, the United States has dismissed embattled President Hosni Mubarak's move to name a new government, saying the situation in the volatile Arab nation calls for action, not appointments.
White House spokesman Robert Gibbs said Monday the U.S. is calling for "a change in the way the country works." But he did not say Mr. Mubarak should step down.
Gibbs said Washington wants "meaningful negotiations" among all groups in Egypt. He repeated the Obama administration's call for free and fair elections there. He added that the United States will not determine or dictate when or how change happens in Egypt.
Mid-East contagion fears for Saudi oil fields Risk analysts and intelligence agencies fear that Egypt's uprising may set off escalating protests in the tense Shia region of Saudi Arabia, home to the world's richest oilfields.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"Yemen, Sudan, Jordan and Syria all look vulnerable. However, the greatest risk in terms of both probability and severity is in Saudi Arabia," said a report by risk consultants Exclusive Analysis.
While markets have focused on possible disruption to the Suez Canal, conduit for 8pc of global shipping, it is unlikely that Egyptian leaders of any stripe would cut off an income stream worth $5bn (£3.1bn) a year to the Egyptian state.
"I don't think the Egyptians will ever dare to touch it," said Opec chief Abdalla El-Badri, adding that the separate Suez oil pipeline is "very well protected". The canal was blockaded after the Six Days War in 1967.
The last trick up Mubarak's sleeve
By Victor Kotsev - ATimes.com
TEL AVIV - "Jimmy Carter will go down in American history as 'the president who lost Iran'," Israeli analyst Aluf Benn wrote on Sunday. "Barack Obama will be remembered as the president who 'lost' Turkey, Lebanon and Egypt, and during whose tenure America's alliances in the Middle East crumbled."
Comparing Obama and Carter is a common theme among Israeli analysts. While Benn qualifies his own comparison by pointing out that "unlike Carter, who preached human rights even when it hurt allies, Obama sat on the fence and exercised caution", there is a widespread perception in Israel that Obama is overly idealistic, doesn't understand the Middle East well, and his policies will bring about a disaster, both for the United States and for the Jewish state.
Iran warns foreign warships in PG
PressTV.ir
A top Iranian military official warns extra-regional forces that their movement in the Persian Gulf is closely monitored by the country's naval forces.
Chairman of the Joint Chiefs of Staff of Iran's Armed Forces Major General Hassan Firouzabadi said Monday that the Iranian Navy is stationed in the region and controls the passage of warships.
"The arrival of American, British, French and Russian warships to the Persian Gulf has for years been a routine [matter] and shows their greed for our oil resources," he was quoted as saying by Fars News Agency.
Reminding that the Persian Gulf is considered Iran's southern coast, Firouzabadi said that Iran probes every ship, which intends to sail in these waters, and only allows them passage after documenting their details.
Iran wins, Israel loses in turmoil
By M K Bhadrakumar - ATimes.com
The two regional powers most affected by the turmoil in the Middle East are going to be Iran and Israel. Life sometimes offers strange parallels. There is much in common between the two intractable adversaries.
These two non-Arab countries appear curiously "stable" in a region caught in a maelstrom. No one points an accusing finger at either as the "hidden hand" behind the turmoil in their neighborhood - not even their worst detractors. In fact, both seem taken by surprise by the torrential flow of events and are figuring out how to assimilate the as-yet unfathomable meaning of what is unfolding.
Both are astute enough to know that small things ignite volcanic eruptions - a sealed train running from Germany to Russia, a sermon given by an old imam in exile under an apple tree on the outskirts of Paris or a conscientious police officer refusing an order to fire on agitators on a Tirana street. And neither can quite divine what secrets the heaving streets of Cairo are still to yield.
Dominoes falling in the Arab world
By Hamid Golpira - PressTV.ir
The dominoes are beginning to fall in the Arab world, and it all began in Tunisia.
A series of street protests in December 2010 and January 2011 led to the ouster of Tunisia's former president, Zine El Abidine Ben Ali, who fled to Saudi Arabia on January 14.
The events in Tunisia have set off a chain reaction across the entire Arab world as citizens of Arab countries have been inspired by the Tunisians' people power movement.
Major demonstrations have been held in Yemen, Egypt, Algeria, and Jordan, and there have been smaller demonstrations and minor incidents in Saudi Arabia, Mauritania, Oman, Sudan, and Libya.
The Middle East at a Strategic Crossroads: Threat to US Hegemony?
by Nicola Nasser - GlobalResearch.ca
The Arab world is the beating heart of the overwhelmingly Muslim Middle East, and the Arab masses are angrily moving for a change in the status quo, practically dictated by the military, economic or political hegemony of the United States, which in turn is whipped by the regional power of the Israeli U.S. strategic ally. But any change in the regional status quo would place the Middle East at a strategic crossroads that is not expected to be viewed tolerantly by the U.S. - Israeli alliance, a fact which expectedly would warn of a fierce struggle to come. Despite the U.S. rhetorical defense of the "universal rights" in the region, it is still premature to conclude that this hegemonic alliance will allow the Arab move for change to run its course, judging by the historic experiences of the last century as well as by the containment tactics the United States is now adopting to defuse whatever strategic changes might be created by the revolting Arab masses.
The Middle East's "Black Swan"
By David Keyes - Reuters.com
Who would have believed that the immolation of a single fruit vendor would spark nation-wide protests and lead to the precipitous downfall of the Tunisian dictator who ruled for 23 years? Who could have imagined that these protests would spread almost immediately to Yemen, Jordan and Egypt? This has been the ultimate Black Swan,Êa term made famous by economist Nassim Taleb, meaning a cataclysmic event that was entirely unpredicted.
The past two weeks in the Arab world are unprecedented in recent history. Hundreds of thousands of people have taken to the streets protesting corruption and dictatorship. When Ben Ali was forced from power, Arabs throughout the region looked at each other and said collectively "Why not our dictator too?"
What Is Globalization?
EndOfTheAmericanDream.com
What is globalization? Well, if you ask 100 different Americans you will probably get 100 different answers. Many people view globalization as harmless or even as a good thing. Other Americans believe that the United States will never be integrated into a global economic and political system. Still others view it as a future threat that has not arrived yet. Those that consider it to be a future threat are concerned that at some point American sovereignty will end and at that point economic and political power will be handed over to a "world government". Well, the truth is that all of those points of view are missing the point. Globalization has been happening for decades and it is already very, very far advanced. The U.S. government has already surrendered massive amounts of political and economic power to global organizations such as the UN, the WTO, the IMF and the World Bank. In particular, our economy has been almost entirely merged into the emerging one world economy. Just because we still have a government in Washington D.C. and just because we are still using U.S. dollars does not mean that we still possess our economic independence. The truth is that global bureaucrats have a stunning amount of control over our economy right now, and even as you read this most of the consumer products sold in our stores are made on the other side of the world.
Obama Has Failed to Fulfill His Mideast Promise
A Commentary by David J. Kramer - Spiegel.de
In recent months, the Obama administration has shifted its focus awayÊfrom the Middle East. This approach might be justified if the situation were getting better there, but things are getting worse. Of the people living in the region, 88 percent live in countries that lack honest elections, a free press and rule of law.
A few months into his presidency, Barack Obama delivered what still ranks as the most ambitious foreign policy address of his administration. Presented at Cairo University, the speech set forth the outlines of a "new beginning" between the United States and the Muslim world.
While many of the president's words focused on contentious issues like Iraq and Iran's nuclear program, he also spoke eloquently about the centrality of democracy to the Muslim world's future. He said the United States would support "elected, peaceful governments" and endorsed democratic values like free expression, honest government and "freedom to live as you choose." He spoke of a "single standard for all who would hold power."
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Secularism, globalization and poverty feed crisis in Arab States
by Simone Cantarini - AsiaNews.it
Egypt, the most important of the Arab states in danger of collapsing under the weight of social unrest. Other Arab countries like Jordan, Syria and Yemen face the same fate. Francesco Zannini, an expert on Islam in PISAI explains to AsiaNews the reasons for the riots, inherent in the formation of Arab States and the juxtaposition of the western model of democracy and Islam. For the scholar, the secular nature of the riots is an opportunity for change and also a good opportunity for Egyptian Christians to integrate into society. However, "the absence of alternative to the regimes and spontaneous nature of the protests, could divert tensions from real change and the result of the protests will be seen only in the long term."
Rome (AsiaNews) - The wave of social unrest that started mid-January in Tunisia, has spread to Egypt, Jordan, Syria and Yemen. Since January 25, in Cairo, Alexandria and other Egyptian cities hundreds of thousands of people continue to patrol streets and squares, demanding the resignation of President Hosni Mubarak. The Rais, thirty years in power, shows no sign of giving up and in recent days has promised reforms and a new government, but meanwhile has cut off all internet communications and deployed the army. Since the beginning of the protests around 150 have people died in the clashes. Currently in Amman, Sana'a and other Arab cities, the situation remains under control and there have been no serious clashes.
The Economics of Egypt's Revolt
By DEREK THOMPSON - The Atlantic.com
It would be overstating things to call the Cairo uprising an economic revolution. But it would be understating things to say that economics has nothing to do with Egypt's revolt. Slow economic development helped build the Egyptian tinderbox that has been set ablaze in the last week.
While most countries with Egypt's access to trading routes and history of merchant power are emerging in the global economy, Egypt's marketplace remains very much hidden. Forget competing with China and Brazil. Egypt's real (inflation-adjusted) household income over the next 12 months is expected to shrink considerably faster than Saudi Arabia and Russia.
Crowds welcome back Tunisian Islamist
By Eileen Byrne in Tunis - FT.com
Thousands turned out at Tunis airport to welcome the Islamist leader Rachid Ghannouchi back from exile, marking another move towards democracy in the country that sparked the current Middle East popular protests.
The return of Mr Ghannouchi on Sunday came two weeks after Tunisia's president Zein al-Abidine Ben Ali fled the country amid widespread protests over unemployment, lack of political freedoms and the involvement of the president's relatives in the business sector.
Discontent had been exacerbated by the shootings of demonstrators by police.
Globalist Stooge ElBaradei Prepares To Hijack Egyptian Revolution
By Paul Joseph Watson - Infowars.com
Speaking with fellow CFR member Christiane Amanpour, Brzezinski told ABC News' This Week that Mubarak must be convinced by "outside advice" that "It is in his interest as well as in Egypt's interest that he goes and that he sets in motion a process which facilitates that."
Although Brzezinski warned of a "global political awakening" during a CFR meeting last year that threatened to topple the existing international order, it is unsurprising that Brzezinski is calling for the ousting of Mubarak despite the fact that he has been a dutiful servant to the new world order elite.
It became known in Brzezinski's globalist circles at least three years ago that Egypt was teetering on the edge of revolt and that another political entity would fill the inevitable vacuum of power if the elite didn't get ahead of the game.
Egyptian Uprising Must Address U.S Interference and the Role of Israel in the Region
by Ghada Chehade - GlobalResearch.ca
As an analyst and observer of the recent rebellions in the Middle East, specifically Egypt, I want to make three developing observations. First, the Egyptian people cannot confront local despots and "regime change" without addressing the patron of Mubarak's regime -- The United States. Second, because of the U.S' influence and because Egypt is so strategically important to the U.S-Israel agenda for the Middle East, the U.S will attempt to control their investments and their interests by regaining control and maintaining patronage. In other words it will attempt (or may have already attempted) to co-opt the public uprising and manage it at some level and continue to do so. Last, in order to adequately address foreign meddlers within the context of the local region and its politics, one must also eventually address the role of Israel. Local Revolution must Condemn Western Influence:
The images coming from the streets of Egypt bring a glimmer of hope to all in the Middle East as well as to anyone around the world who is serious about justice. Yet as I watch these images (as a Palestinian-Egyptian from the west) there is one thing that is alarmingly and frustratingly absent - cries of popular condemnation of and rebellion against the U.S' influence and role in Egypt. There are denunciations of the puppet - Mubarak - but not of those who pull his strings. Any uprising against Mubarak that does not also confront foreign meddling is ultimately flawed and shortsighted. Revolutions against Arab despots must also address these dictators' western over-lords and the latter's ongoing colonial/imperial agenda for the region.
Democracy, Islamism, and the 21st Century
By John Tabin - The American Spectator.org
The striking thing about the passage Jim quoted earlier this morning, from Jeanne Kirkpatrick's influential 1979 essay "Dictatorships and Double Standards," is that the factual assertion upon which it's premised -- "most governments in the world are, as they always have been, autocracies of one kind or another" -- is no longer true. In 1979 Freedom House ranked 35% of countries in the world Not Free and only 32% Free. In Freedom House's latest report, 45% of countries are ranked Free and only 24% of countries are ranked Not Free. All of the Free countries are liberal democracies, and another 14% (a bit shy of half the countries in the "Partly Free" catagory) are not-so-liberal electoral democracies, making a total of 59% of countries in the world at least somewhat democratic.
Mideast Powder Keg
By Ron Fraser - theTrumpet.com
From Tunisia to Yemen, the whole balance of power in North Africa and the Middle East is changing. What does this portend for the future in this volatile region?
.... This great arc of unrest must be viewed in the light of Iran's continuing efforts to take advantage of these situations in its concentrated and unwavering effort to pressure the United States and its allies to pack up and leave the region ripe for Iranian takeover.
Viewed in this light, the whole current North African/Middle East turmoil presents a scenario deeply worrying to those nations economically dependent on the continuing, uninterrupted supply of North African and Middle Eastern oil and gas, especially the European Union.
Tracing The Path Of Egypt's Disruption Sending Contagion To The Stronger Countries Of Europe
by Reggie Middleton - ZeroHedge.com
What could the ruler of Egypt's turmoils possible have to do with the need to takeover even more banks in western Europe and the potential default of several members of the PIIGS group? Read on, my dear friend
.... Instability stems from a government that loses control of its people Henry Kissenger commissioned the CIA to create a model that attempted to predict the potential for disruption and the liklihood of a government and/or regime being toppled. The request originated from his alleged tiring of being behind the curve of such events and felt the US was best served if it was at the forefront of regime change. In more direct, and less politically correct words, in order for the US to more efficiently maintain control of other countries it had to know what was going on before the fact. I have incorporated many aspects of this model into my own financial analysis for very much the same reasons.
Part 1 Nile Insurgency Creates Uncertain Future for Egypt In the wake of the Jasmine Revolution in Tunisia, the Egyptians are now revolting against the regime of President Hosni Mubarak. The country feels as if it were waking up from a bad dream, but the West stands to lose a reliable partner -- and Israel one of its few Arab friends.
By SPIEGEL Staff - Spiegel.de
The Pharaoh was silent. He was sitting, as he often does now in his old age, in his vacation home in Sharm al-Sheikh on the southern tip of the Sinai Peninsula, gazing out at Tiran Island in the eternally glistening Red Sea. This is where the Egyptian president receives world leaders, where he has sat stiffly next to Israeli prime ministers, and where he has introduced alternating US presidents to alternating Arab rulers. Hosni Mubarak, 82, feels at home in the majestic calm of Sharm el-Sheikh, but not in noisy, dirty, crowded Cairo. Sharm el-Sheikh is where the Egyptian ruler holds court and where, for now at least, he was remaining silent.
Part 2 A Difficult Conundrum for Europe and the United States
By SPIEGEL Staff - Spiegel.de
For the people of the Arab world, the radical change that began in Tunisia more than a month ago and now continues in Egypt is already an epochal event. Many of the 360 million Arabs are so young that they have only experienced rulers who have become ossified into icons during the course of their rule. Egyptians today must be well over 30 and Libyans well over 40 to even remember being ruled by someone other than Hosni Mubarak or Moammar Gadhafi. But the Tunisians have proven that aura is ultimately irrelevant, and that even icons are replaceable. It is a realization akin to the shock the people of Eastern Europe experienced after the fall of their communist regimes, or even that of the subjects of Europe's monarchs after the French Revolution.
Part 3 Forty Percent of Population Live on Less than Two Dollars a Day
By SPIEGEL Staff - Spiegel.de
Mubarak survived an attack by the Islamist terrorist group Jihad Islami, which killed his predecessor Anwar al-Sadat during a military parade on Oct. 6, 1981. Since then, stopping Islamist terror has been a central tenet of his policies. Many Egyptians shared Mubarak's sentiments and even supported the regime when, in the 1990s, it searched for the terrorists responsible for attacks on tourists.
Even today, Mubarak is not nearly as hated as former Iraqi dictator Saddam Hussein or his Tunisian counterpart Ben Ali were when they were in power. A former air force general who distinguished himself in the 1973 Yom Kippur war, Mubarak has earned high marks for his personal integrity. Nevertheless, there has been persistent speculation over the affluent lifestyle of his wife and sons. Gamal, whose greatest political patron is said to be his mother Suzanne Mubarak, owns an investment firm and an apartment in London's upscale Knightsbridge neighborhood. Nevertheless, the assets of the Mubaraks are likely modest in comparison with those of the Tunisian Ben Ali clan.
Part 4 Three Scenarios for Egypt's Future
By SPIEGEL Staff - Spiegel.de
Three possible scenarios loom for Egypt: a Burmese, a Turkish or an Iranian model. Whatever direction the country takes, Egypt's future will be critical for the region.
Whether the military assumes power in Cairo, as has been the case in Rangoon for decades, is unclear. Sami Annan, the army's chief of staff, and Defense Minister Mohammed Hussein Tantawi traveled to Washington at the beginning of the week. The military leadership is undoubtedly coordinating its next steps with the Pentagon, despite the fact that Washington threatened to freeze military aid to Cairo on Friday evening. Modern-day Egypt has a tradition of having presidents with military backgrounds. Gamel Abdal Nasser, Sadat and Mubarak, Egypt's three leaders since 1954, all had army backgrounds. And Defense Minister Tantawi, 75, is significantly more popular than intelligence chief Omar Suleiman, also frequently mentioned as a possible successor to Mubarak.
Protests Persist in Egypt as New Cabinet Is Seated
By ANTHONY SHADID, DAVID D. KIRKPATRICK AND KAREEM FAHIM - NYTimes.com -- CAIRO - As tens of thousands of protesters gathered in Tahrir Square to shout for his ouster, President Hosni Mubarak of Egypt reshuffled his government on Monday, a gesture that the opposition has already dismissed as inadequate. Since the demonstrations began last Tuesday, the president has stayed mostly out of sight, apparently intent on waiting for the protesters' passions to cool. But opposition organizers called for the largest demonstrations yet - a "march of millions" - on Tuesday, and the Egyptian economy showed more signs of shutting down.
Torturers, Jailers, Spies Lead Egypt's 'New' Government
By Spencer Ackerman - Wired.com
Dissidents demanding the end of Egyptian President Hosni Mubarak's regime had better hope they don't end up under arrest. The first members of Mubarak's new cabinet - a face-lift so he can stay in power - are heavily involved in the apparatus of state repression, including a spymaster who worked with the U.S. to torture terrorist suspects.
New prime minister Ahmed Shafik is a long-time deputy of Mubarak with a reputation for toughness. The new interior minister was the top jailer. And the new vice president is the Middle East's most powerful intelligence chief. That looks less like the kind of government demanded by the protesters and more like a government designed to crack down on them.
Hoenlein: ElBaradei a 'stooge' for Iran
By RON KAMPEAS | JTA - JerusalemPost - JPost.com
Conference of Presidents chief says Egyptian opposition leader "distorted reports" from Iran during his tenure as IAEA director.
WASHINGTON - The director of the US Jewish foreign policy umbrella called Mohammed ElBaradei, the opposition leader emerging from the Egyptian ferment, a "stooge of Iran."
Malcolm Hoenlein, the executive vice-president of the Conference of Presidents of Major American Jewish Organizations, accused ElBaradei of covering up Iran's true nuclear weaponization capacities while he directed the International Atomic Energy Agency, the UN nuclear watchdog.
Mubarak gives army shoot-to-kill order
PressTV.ir
Embattled Egyptian President Hosni Mubarak has reportedly given his armed forces the authority to shoot-to-kill as anti-government protests gain momentum.
Reports say the army has been ordered to shoot when it sees fit. Military helicopters and jet fighters fly over major locations as the numbers of protesters multiply there.
Tens of thousands of people have practically taken over the Tahrir Square in the city center despite heavy military presence, a Press TV correspondent reported.
Clashes between demonstrators and police have left at least 150 people dead and thousands more wounded since anti-Mubarak rallies began in Cairo, Suez and Alexandria on Tuesday.
Your Weapons Are On Cairo's Streets
By Spencer Ackerman - Wired.com
On the streets of Cairo and around the world, everyone's waiting to see if the Egyptian Army is going to crack down on the demonstrators demanding the ouster of President Hosni Mubarak. Whatever Egypt's military does next, chances are they'll do it with American weapons.
Al-Jazeera showed M1A1 Abrams tanks carrying Egyptian soldiers through Cairo in what its correspondents called "a show of force." Those iconic American tanks have been co-produced in Egypt since 1988; the Egyptians have about 1000 of them. As was endlessly re-tweeted, canisters containing tear gas that the police used on protesters - before the hated police melted away over the weekend - had "Made in America" stamped on them.
Egypt's police return; foreigners try to evacuate In the seventh day of protests against President Hosni Mubarak, organizers call for a 'million-man march' and continue noisy demonstrations in Cairo's Tahrir Square. Police are redeployed but avoid the square. Meanwhile, foreigners wait at the airport to evacuate.
By Laura King and Edmund Sanders, Los Angeles Times
Reporting from Cairo - Police began returning to their posts in the Egyptian capital on Monday, seeking to restore order after days of looting, but they stayed away from the protester-thronged square that has become the epicenter of the movement to oust President Hosni Mubarak.
As the dramatic standoff entered its seventh day, protest organizers called for the biggest demonstrations yet, urging that 1 million people flood the streets Tuesday.
U.S. Begins Evacuation Flights From Cairo
By LIAM STACK and J. DAVID GOODMAN - NYTimes.com
CAIRO - The State Department began a voluntary evacuation of American citizens from Egypt on specially chartered flights to "safe havens" on Monday as unrest continued to roil the country.
Cairo International Airport on Monday was a chaotic scene, overflowing with tourists and Egyptians desperate to get on an outbound commercial flight. Outside Terminal 1 more than 1,000 people - mostly Egyptians - sat on sidewalks and in the airport parking lot, surrounded by luggage.
Tempers boiled over at times as travelers struggled to get seats on the limited number of commercial flights still operating. At one point the airport stopped posting flight times on its departure board, The Associated Press reported, in an attempt to ease tensions. But the move served only to stoke anger over delays and cancellations.
What Corruption and Force Have Wrought in Egypt
By Chris Hedges - Truthdig.com
The uprising in Egypt, although united around the nearly universal desire to rid the country of the military dictator Hosni Mubarak, also presages the inevitable shift within the Arab world away from secular regimes toward an embrace of Islamic rule. Don't be fooled by the glib sloganeering about democracy or the facile reporting by Western reporters - few of whom speak Arabic or have experience in the region. Egyptians are not Americans. They have their own culture, their own sets of grievances and their own history. And it is not ours. They want, as we do, to have a say in their own governance, but that say will include widespread support - especially among Egypt's poor, who make up more than half the country and live on about two dollars a day - for the Muslim Brotherhood and Islamic parties. Any real opening of the political system in the Arab world's most populated nation will see an empowering of these Islamic movements. And any attempt to close the system further - say a replacement of Mubarak with another military dictator - will ensure a deeper radicalization in Egypt and the wider Arab world.
EGYPT, Don't Be Gyped: The Economic Crisis Behind The Protests
BY DANNY SCHECHTER - OpEdNews.com
This is an upstairs/downstairs story that takes us from the peak of a Western mountaintop for the wealthy to spreading mass despair in the valleys of the Third World poor.
It is about how the solutions for the world financial crisis that the Ceos and Big pols are massaging in a posh conference center in snowy Davos Switzerland have turned into a global economic catastrophe in the streets of Cairo, the current ground zero of a certain to spread wave of international unrest.
Microsoft shifts some work out of Egypt It is among some 120 companies located in Cairo's Smart Village IT office park
By Patrick Thibodeau - Computerworld.com
WASHINGTON -- Egypt has been aggressively attracting tech companies to its wired office parks to help create jobs for its young, educated and often English-speaking workforce. But by cutting off Internet access last week in the wake of civil unrest, Egypt's government demonstrated just how quickly it can unwind its hi-tech goals.
Microsoft is among the 120 companies located in Cairo's Smart Villages, an office park created in 2003 to be Egypt's "prime" information technology park. It includes a health club, swimming pool, video conferencing services, a conference center and a pyramid-shaped restaurant called the "Think Tank Café."
Assad Says Syria Is Immune to the Unrest in Egypt
By Zeina Karam, Associated Press - CNSNews.com
Beirut (AP) - Syria's president, who has resisted calls for political freedoms and jailed critics of his regime, said in an interview published Monday that his nation is immune from the kind of unrest roiling Tunisia and Egypt.
In a rare interview, Bashar Assad was quoted in the Wall Street Journal as acknowledging that the toppling of Tunisia's longtime ruler and the protesters that have left Hosni Mubarak's government teetering in Egypt signaled a "new era" in the Middle East.
But he said Syria, which has gradually shed its socialist past in favor of the free market in recent years, was insulated from the upheaval because he understood his people's needs and has united them in common cause against Israel.
AIB condemns closure of Al Jazeera Cairo bureau; laments lack of media freedom -- by Andy Sennitt. - Radio Netherlands Worldwide
The Association for International Broadcasting, the industry association for international TV, radio, mobile and online broadcasting, strongly condemns the closure of the Cairo bureau of Al Jazeera Network and the withdrawal of accreditation to Al Jazeera correspondents in Egypt.
The moves by the Egyptian Ministry of Information, announced on Egyptian TV and by MENA, the official news agency in Egypt, come at a time when the focus of a majority of the world's media is on the continuing unrest in the North African country. The announcement on MENA said: "The information minister [Anas al-Fikki] ordered suspension of operations of Al Jazeera, cancelling of its licences and withdrawing accreditation to all its staff as of today."
World Revolution Made in America. The Biggest Battlefield yet to come will be in the USA
by Finian Cunningham - GlobalResearch.ca
Overnight, the death toll among Egypt's masses protesting for the overthrow of US-backed dictator Hosni Mubarak has risen to over 150 and thousands injured. With telecommunication services blacked out by the authorities (and willingly obliged by the telecoms corporations), it is hard to verify the exact casualty figures. But it is undeniable that a massacre is occurring. And it is a massacre made in the US.
The US public needs to be very clear about this. The armed forces of the Mubarak regime are now killing and maiming civilians with weapons that are made in the US and supplied by the US at the rate of $1.5 billion a year - for the last 30 years.
Mubarak's regime could not carry out its violent repression without the material and political support of Washington. For 30 years, the Mubarak regime could not have impoverished its mass of people, subjected them to terror, illegal incarceration, torture and killing without the material and political support of Washington (and other Western governments).
Protests Spread To Saudi Arabia
by Tyler Durden - ZeroHedge.com
While the biggest threat to the Middle East region is the possibility that the population of Saudi Arabia may try to imitate what has been happening in the area, thereby bringing total chaos to the established regional geopolitical and more importantly, energy, structure, the first protests in the Saudi Arabia city of Jeddah are already in the books. The clip below shows the peaceful demonstrations that have taken place recently, which as Fedupmontrealer explains are "taking place in front of the Municipality in protest of the severe lack of infrastructure, and corruption, that led the city to be inundated this week causing billions of dollars of damages for the second time in two years." That this is even occurring in a state where the average wealth is orders of magnitude greater than in Egypt is remarkable. On the other hand, we expect more news such as those from yesterday that Kuwait is paying its citizens $3,500 plus free food for a year to keep calm. Oddly, visions of money dropping helicopters, infinitely extendable unemployment insurance and tax breaks keep dancing in our head. Those who wish to follows the latest developments out of Jedda which appears could be the lightning rod for Saudi riots can do so by tracking #JeddahProtests on Twitter.
Albania braces for fresh protests
TheAustralian.com
THE mood of revolt has spread beyond the Arab world to the Balkans.
The Albanian opposition gearing up for another anti-government protest today and the police warning of a high risk of violence.
The opposition Socialist Party said the rally was aimed at honouring the three victims of violent clashes in last week's anti-government demonstration. Protesters have been calling on the government to resign, claiming corruption and electoral fraud.
"I want to assure you it will be peaceful and quiet, there will be flowers and candles," Socialist leader Edi Rama said yesterday.
"Everything will be normal, not provoking anyone and not being provoked by anyone."
Police said the demonstration was a danger to national security, and warned that they could not guarantee the rally's safety.
Fed Keeps Pedal to the Metal As Egypt Unrest Weighs on Markets
BY JON D. MARKMAN, Contributing Writer, Money Morning
Stocks swaggered through the first four days of the past week with their usual devil-may-care attitude, then tripped into the final three hours on Friday amid scenes of civil unrest in Egypt. At the final count, the Dow Jones Industrials closed down Friday by 1.4%, the S&P 500 fell 1.8%, the Nasdaq fell 2.5% and the Russell 2000 small-caps sank 2.5%.
For the week, the Dow was only down 0.4%, though, while the S&P was off 0.5%, the Nasdaq was flat and the Russell 2000 small-caps were actually up 0.3%.
Now investors will have a couple of days to think about what the street protests in Egypt mean for that beautiful and historic country, the freedom impulse of citizens living under totalitarianism in Northern Africa, the flow of oil and gas from the Persian Gulf through the Suez Canal, and the strength of U.S. allies in the region.
Moral Relativism
EndOfTheAmericanDream.com
John Adams, the second president of the United States, once made the following statement: "We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other." As we promote a return to constitutional principles, perhaps we should also be asking ourselves if the American people are moral enough to uphold and defend our Constitution anymore. Will a political shift in Washington D.C. solve all of our problems, or should we be looking into our own hearts as well? As controversial as it may be to question the morality of the American people, the truth is that after all of the shocking things that have transpired in this nation over the last 50 years someone certainly should be willing to ask the hard questions. It would be hard to deny that moral relativism and moral decay are absolutely rampant in the United States today, and that our moral problems are very much at the heart of many of our problems.
Hedge Funds Get No Love In Davos
By Halah Touryalai - Forbes.com
There's some hedge fund hating going on at the World Economic Forum in Davos this week.
The latest comes from Deutsche Bank CEO Josef Ackermann who told Bloomberg that private entities like hedge funds pose a systemic risk to the economy if lax oversight persists.
"You have an unregulated area which becomes - as a consequence of all the regulatory changesÐmore and more important. You may one day wake up and realize that the systemic challenges are so big that you will have to bail out or at least help support the unregulated sector," Ackermann said.
His comments come on the heels of Goldman Sachs president and COO Gary Cohn's concerns about the unregulated world of hedge funds.
Loneliest Man in Davos Foresees 2015 Bank Crisis While Global Elites Party -- By Christine Harper - Bloomberg.com
As politicians, executives and financiers networked at parties and panels last week in Davos, Switzerland, Barrie Wilkinson was in a nearby hotel, warning that a 2015 financial catastrophe may be looming.
"The fundamentals haven't been addressed at all," Wilkinson, a London-based partner at consulting firm Oliver Wyman, said in an interview at the Hotel Morosani Schweizerhof. "The things that caused the previous crisis -- loose monetary policy and trade imbalances -- they're actually bigger now than they were then."
Merkel's Plan Could Transform the European Union
By SPIEGEL Staff - Spiegel.de
German Chancellor Angela Merkel wants to stabilize the euro through a "pact for competitiveness" that would force EU members to coordinate their national policies on issues like tax, wages and retirement ages. The plan would transform the EU if it becomes reality, but resistance will be fierce -- including from within Merkel's own governing coalition. By SPIEGEL Staff
It was intended to be a pleasant evening. At their meeting in the German government's guesthouse in Meseberg near Berlin last Tuesday, German Chancellor Angela Merkel and European Commission President José Manuel Barroso had set aside plenty of time to resolve their dispute on how to save the euro. The comfortable fireplace room had been prepared, with sparkling wine and beer ready to be served. Only their closest advisers were allowed to attend.
Tunisia Internet Chief Gives Inside Look at Cyber Uprising
By Mike Elkin - Wired.com
TUNIS, Tunisia - When Zine El Abidine Ben Ali's dictatorship began unraveling here last month amid violent street protests, Tunisia's internet administrators saw a massive spike in the number of sites placed on government block lists. But, in contrast to the embattled Egyptian government, the Ben Ali regime never ordered internet and cellphone communications shut off or slowed down, the head of the Tunisian Internet Agency says.
"I think Ben Ali did not realize where the situation was going or that he could be taken down," Tunisian Internet Agency (French initials: ATI) director Kamel Saadaoui tells Wired.com. "Maybe if he had known that, he would have cut the internet. But the number of blocked sites did grow drastically when the revolution started. They were trying desperately to block any site that spoke about Sidi Bouzid. In a few weeks the number doubled."
Internet 'Kill Switch' Legislation Back in Play
By David Kravets - Wired.com
Legislation granting the president internet-killing powers is to be re-introduced soon to a Senate committee, the proposal's chief sponsor told Wired.com on Friday.
The resurgence of the so-called "kill switch" legislation came the same day Egyptians faced an internet blackout designed to counter massive demonstrations in that country.
The bill, which has bipartisan support, is being floated by Sen. Susan Collins, the Republican ranking member on the Homeland Security and Governmental Affairs Committee. The proposed legislation, which Collins said would not give the president the same power Egypt's Hosni Mubarak is exercising to quell dissent, sailed through the Homeland Security Committee in December but expired with the new Congress weeks later.
Does Obama's 'Net Freedom Agenda' Hurt The U.S.?
By Spencer Ackerman - Wired.com
On Thursday, President Obama declared access to social networks to be a "universal" value, right alongside freedom of speech. But when those networks helped weaken Egypt's Hosni Mubarak, one of the U.S.' strongest allies in the Middle East, the Obama team demanded Mubarak turn the Egyptian Internet back on - but didn't abandon support for him, either. Maybe this "Internet Freedom Agenda" wasn't so well thought out?
For more than a year, the White House has been pushing the idea that online connections are a good thing - no matter what's said using those tools. It's a way of signaling to wired people, not just governments, that the U.S. is on their side. The Obama administration called for Twitter to stay online during 2009 protests in Iran, and U.S. cash for new social networks like Pakistan's Humari Awaz and SMS relief webs for Haitian earthquake victims. "The very existence of social networks," State Department tech adviser Alec Ross said, "is a net good."
Kill Switch: Obama Administration Fears Egypt-Style Revolt In U.S. Obama decries Internet shut-down in Egypt while his own administration prepares to enact same draconian powers to crush dissent during times of political upheaval in America
By Paul Joseph Watson Infowars.com
The Obama administration is busy attempting to pass legislation that would give the President a kill switch for the Internet in the United States while at the same time decrying Egyptian authorities for shutting down the Internet in a bid to deflate the unfolding revolution against Hosni Mubarak. The reason is simple - the government fears an Egypt-style revolt occurring in the U.S. and wants to block access to the world wide web if and when it happens.
Chicago radio host and occasional Alex Jones Show guest Mancow Muller called it right during an appearance on Mike Huckabee's show this weekend.
"It's in all the newspapers, 'Ohblahblah', we've got to free up Twitter, we've got to free up the Internet and Facebook for these poor Egyptians - this is the President that let Wikileaks and all of this stuff happen," said Mancow.
Communicate if Your Government Shuts Off Your Internet
Wired How-To Wiki
Scenario: Your government is displeased with the communication going on in your location and pulls the plug on your internet access, most likely by telling the major ISPs to turn off service.
This is what happened in Egypt January 25 prompted by citizen protests, with sources estimating that the Egyptian government has cut off approximately 88 percent of the country's internet access. What do you do without Internet? Step 1: Stop crying in the corner. Then start taking steps to reconnect with your network. Here's a list of things you can do to keep the communication flowing.
Greenpeace protests at Koch brothers' rally Billionaire industrialists Charles and David Koch accused of distorting US democracy
By Ed Pilkington, in New York - guardian.co.uk,
Prominent figures on both the right and left of the US political spectrum gathered in the luxury enclave of Rancho Mirage in the Californian desert today amid increasingly heated debate about the influence of the secrecy-loving billionaires Charles and David Koch on the political process.
About 200 key figures in business, energy, the media and law were expected to assemble at a five-star hotel at the invitation of the Koch brothers for the latest of their twice-yearly discussion groups on how to forward their libertarian causes. The talks began at 1pm with sessions that focused on how to fight the Obama administration, which the Kochs see as a threat to the free market and unfettered wealth.
EU: WTO finds Boeing got illegal subsidies
The European Union said Monday that the World Trade Organization found U.S. aid to Boeing Co. violated international rules -- claiming to have won the latest round in the long-running subsidy battle between the Chicago-based plane maker and European rival Airbus.
The EU said the WTO report confirmed a preliminary ruling on the case made in September. That ruling came months after the Geneva-based trade body faulted European governments for illegally supporting local aircraft maker Airbus.
"This solid report sheds further light on the negative consequences for the EU industry of these US subsidies and provides a timely element of balance in this long-running dispute," EU trade spokesman John Clancy said in a statement.
Home Prices Sink Further Declines Reported in All 28 Major Metropolitan Areas; Unsold Inventory Piles Up
By NICK TIMIRAOS - WSJ.com
Home values are falling at an accelerating rate in many cities across the U.S.
The Wall Street Journal's latest quarterly survey of housing-market conditions found that prices declined in all of the 28 major metropolitan areas tracked during the fourth quarter when compared to a year earlier.
The size of the year-to-year price declines was greater than the previous quarter's in all but three of the markets, the latest indication that the housing market faces considerable challenges.
Inventory levels, meanwhile, are rising in many markets as the number of unsold homes piles up.
Home values dropped the most in cities that have already been hard-hit by the housing bust, including Miami, Orlando, Atlanta, and Chicago, according to data from real-estate website Zillow.com. But price declines also intensified in several markets that so far have escaped the brunt of the downturn, including Seattle and Portland, Ore.
Phoenix-area real-estate market may face new reality More renters, foreclosures, blight to mark next phase
by J. Craig Anderson - The Arizona Republic
As the Phoenix-area housing market's shift from boom to bust approaches its fifth anniversary, a number of real-estate analysts have replaced optimistic terms such as "recovery" with sobering talk of a new market reality.
The landscape of tomorrow's housing market, as depicted in recent research papers and forecast meetings, is only a rough sketch, but three notable features have taken shape.
Foremost among them is a much higher ratio of renters to homeowners than the Phoenix area has seen in recent decades.
Social Security Is Now Officially Insolvent
BY ROBERT MORLEY - theTrumpet.com
The Congressional Budget Office said it was wrong on Wednesday. It now projects that Social Security will run deficits every year for the rest of the fund's life. In essence, the cbo admits that Social Security is officially insolvent.
Previously, the cbo reassured retirees that although the fund had gone into the red for the last two years, it would shortly return to surplus. The fund wouldn't permanently start paying out more than it collected until at least 2016, it said.
The cbo apparently underestimated the length and depth of the current economic downturn. And it obviously underestimated the incompetence of Washington politicians. Last December, the Obama administration approved a reduction in Social Security contributions-lowering the Social Security tax from 6.2 to 4.2 percent.
Judge strikes down healthcare reform law
By Tom Brown - Reuters.com
(Reuters) - A federal judge in Florida struck down President Barack Obama's landmark healthcare overhaul as unconstitutional on Monday in the biggest legal challenge yet to federal authority to enact the law.
U.S. District Judge Roger Vinson ruled that the reform law's so-called individual mandate went too far in requiring that Americans start buying health insurance in 2014 or pay a penalty.
"Because the individual mandate is unconstitutional and not severable, the entire act must be declared void," he wrote, "This has been a difficult decision to reach and I am aware that it will have indeterminable implications."
Democrats Push Aviation Bill As a Jobs Program
By Joan Lowy, Associated Press - CNSNews.com
Washington (AP) - Democratic leaders say they will bring an aviation bill that includes $8 billion for airport construction to the Senate floor this week, pitching it as a jobs measure.
The bill -- introduced by Sen. Jay Rockefeller, D-W.Va., last week -- is identical to a bill that passed the Senate last spring on a 93 to 0 vote. That bill later stalled when Congress couldn't reach agreement on several side issues, including distribution of landing slots at Reagan National Airport near Washington, the fee airline passengers pay to support airport improvements and a labor dispute between delivery giants FedEx and United Parcel Service.
China Ambassador Jon Huntsman May Quit to Run Against Obama in 2012 -- PoliticsDaily.com
When President Obama appointed Utah's popular Republican governor, Jon Huntsman, to be his ambassador to China in May 2009, it looked like a smart move to show Obama's willingness to reach across party lines and, to the more cynical, a way to sideline a possible opponent in 2012.
But that second calculation, if it was in Obama's mind, may be proved wrong. Several news organizations, including Politico and ABCNews.com, are reporting that Huntsman may quit the China job this spring to prepare for a presidential run and that he will make his decision by summer.
Chinese Take a Cotton to Hoarding
By CAROLYN CUI - WSJ.com
Yu Lianmin, a cotton farmer in Huji, China, harvested 6,600 pounds of cotton this year. Despite record cotton prices, he didn't sell any of it.
Instead, mounds of cotton are piled up in two empty rooms of Mr. Yu's home, and the homes of many of the farmers in his small township of Yujia, which is part of the bigger township of Huji in northern Shandong province, 220 miles southeast of Beijing. The farmers are holding out for higher prices, aiming to help overcome higher costs of labor and fertilizer, which are up about 20% in the past year.
"I think there's still hope for prices to go higher," he said.
Brzezinski calls for better US-China co-operation
By Daniel Dombey in Washington - FT.com
Published: January 19 2011 19:17
One of the chief architects of the US's diplomatic relations with China said the two sides once again face a common adversary in the shape of an increasingly ungovernable world.
Zbigniew Brzezinski argued in a video interview with the Financial Times that Washington and Beijing need to use this week's state visit by Chinese president Hu Jintao to work towards a common agenda encompassing issues such North Korea, the Middle East and the international financial system.
Three decades ago, Mr Brzezinski, then national security adviser under US president Jimmy Carter, hosted the late Deng Xiaoping for dinner at his house at the start of the Chinese leader's historic visit to the US.
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