Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Monday 04.30.2012
Five Banks Fail in Friday Night Massacre
By Philip van Doorn - TheStreet.com
NEW YORK (TheStreet) -- State and federal regulators shuttered five banks Friday evening, bringing this year's total number of bank failures to 22.
All five failed banks were previously included inTheStreet's fourth-quarter Bank Watch List ofundercapitalized institutions, based on regulatory data provided by HighlineFI.
Plantation Federal Bank - Pawleys Island, S.C.
Inter Savings Bank, FSB - Maple Grove, Minn.
HarVest Bank of Maryland - Gaithersburg, MD
Bank of the Eastern Shore - Cambridge, MD
Palm Desert National Bank - Costa Mesa, Calif.
The unwitting move towards a global gold standard
Posted by Izabella Kaminska - FT.com
Professor Lew Spellman, from the McCombs School of Business at the University of Texas at Austin, has an interesting new post out on the changing role of gold in the global economy.
It relates to the notion that a shortage of safe assets may be driving an epic hunt for "safe collateral" — driving down yields on traditional fixed-income investments — because there are more debt liabilities/obligations than safe collateral in the system.
Gold posts biggest weekly rise since late February
By Frank Tang and Jan Harvey
(Reuters) - Gold rose for a fourth consecutive session on Friday and posted its biggest weekly gain since late February, as disappointing U.S. growth and European debt jitters boosted investment demand for the precious metal.
Bullion buying accelerated after a report showed U.S. economic growth cooled in the first quarter as businesses cut back on investment.
Some safe-haven demand also supported prices after a credit downgrade of Spain's sovereign debt by Standard & Poor's.
Gold Traders Get More Bullish as Central Banks Hoard More
By Nicholas Larkin - Bloomberg.com
Gold traders are more bullish after central banks expanded their bullion reserves and hedge funds increased bets on a rally for the first time in three weeks.
Fourteen of 28 analysts surveyed by Bloomberg expect prices to gain next week and nine were neutral, the highest proportion in two weeks. Mexico, Russia and Turkey added about 44.8 metric tons valued at $2.4 billion to reserves in March, International Monetary Fund data show. Fund managers raised their so-called net-long positions by 2.5 percent in the week ended April 17, according to the Commodity Futures Trading Commission.
Silver to hit $40/oz by late 2012-2013; decline to $25 in 2014
CommodityOnline.com
NEW YORK (Commodity Online): Silver to approach $40/oz by the end of 2012 or early2013 as stronger industrial and investment demand tightens up supply/demand conditions, said TD Securities in a commodity briefing.
But longer term, TDS looks for supply to outpace demand starting in the latter part of 2013, with silver perhaps sliding to $25 in 2014 and below $20 over the longer run, TDS added.
Topping Dollar: Good News for Commodities Now,
Bad News for Economy Later
BY CHRIS PUPLAVA - FinancialSense.com
The currency markets are the largest financial market in the world, and thus tracking currency movements and spotting inflection points can provide vital clues for how other asset classes will respond. Given the USD's reserve currency status and that the bulk of global transactions are denominated in dollars, it is crucial to always keep an eye on trends in the USD, particularly for US investors. The USD appears to be in the early stages of breaking down and an intermediate-term selloff would have widespread implications. Typically, weakness in the USD leads to immediate strength in commodities and foreign equities, while also sowing the seeds for future inflation as rising commodity prices and import prices bring about rising inflationary pressures that weaken the economy down the road.
Dollar Pain Is Commodities Gain
I believe the dollar is setting the stage for a decline based on the price action of the USD Index and the USD's strength versus other currencies. Shown below is the USD Index over the last six months and a clear triangle can be seen with it breaking to the downside recently and looking set to test both the 200 day simple moving average (200d SMA) and the February low ahead. My guess is that after the USD Index hits the 200d SMA it will get a small relief rally before eventually breaking down further.
Any US economic, dollar weakness
would revive Gold investment interest: Deutsche Bank
LONDON (Commodity Online): The private-sector investors have shunned gold in recent months but central-bank purchases accelerated, said German based Deutsche Bank in a weekly commodity briefing.
"We would expect the most likely trigger for more private-sector involvement in the gold market would be from a deterioration in the U.S. labor market alongside a weakening in the U.S. Dollar. Certainly the weakness in U.S. oil demand would indicate that strong job creation in the U.S. will remain challenging," Deutsche Bank added.
Currency Wars: The Making of the Next Global Crisis
By Doug French - Townhall.com
The talk is all about jobs, jobs, jobs in Washington and on the campaign trail as the unemployment rate continues to be elevated and long-term unemployment is higher than ever. Since getting government out of the way isn't an option, late last year congressional leaders decided to turn up the volume while crying that American workers are being damaged by China's undervalued currency — the renminbi (or yuan).
Bipartisan support was summoned to declare China a currency manipulator, triggering retaliatory tariffs on Chinese imports in hopes that China would allow the renminbi to rise against the dollar.
Father of Treasury Floaters Says Now Worst Time for Sales
By Liz Capo McCormick and Meera Louis - Bloomberg.com
Almost two decades after advising the U.S. to sell floating-rate notes to lower debt expenses, Campbell Harvey says starting to issue the securities now would be a costly mistake for American taxpayers.
"In an environment with historically low interest rates, the Treasury should avoid floating-rate debt as it introduces risk," Harvey, a finance professor at Duke University's Fuqua School of Business in Durham, North Carolina, said in a telephone interview April 17. "If interest rates go up, it puts the government at risk because they will need to come up with a lot of extra revenue to pay the interest bill."
The 2% Catastrophe:
How One Number Explains the Miserable Economy The Federal Reserve is crucifying the U.S. economy
on a cross of two-percent inflation.
By Matthew O'Brien - TheAtlantic.com
The Federal Reserve balance sheet contains roughly $2.5 trillion worth of Treasuries, Fannie Mae bonds and mortgage-backed securities. But there is one asset the Fed considers invaluable. Credibility.
Most people think the central bank's job is manipulating interest rates, but the Fed is really in the business of making and keeping promises about the economy. Lately the Fed is obsessed with a narrow construction of credibility that is holding back the entire country.
The Fed Will Come to the Rescue but Deliberately Late
BY SY HARDING - FinancialSense.com
There can be no doubt anymore that the global economic recovery is in trouble again.
In the U.S. we can see it in the reversals of previously positive economic reports; unexpected declines in durable goods orders, industrial production, new home sales, existing home sales, new home starts, construction spending, new jobs creation, personal income, consumer confidence, small business confidence, and so on.
The Chicago Federal Reserve's National Activity Index (CFNAI), designed to measure nationwide economic activity, was reported this week to have declined for the third straight month, dropping into negative territory in March.
Europeans will never accept a federal banking system Hope springs eternal when it comes to efforts to save the euro.
By Jeremy Warner - Telegraph.co.uk
The latest crackpot idea for shoring up Europe's monetary union, much discussed at last week's spring meeting of the International Monetary Fund and now widely promoted by eurocrats, is the establishment of a federal banking system, with a single framework for regulation, bailouts, deposit insurance, supervision and resolution.
There is, of course, nothing particularly new in the proposal; for many economists, it's long been seen as an essential precondition for successful monetary union, at least as important as the federalisation of fiscal and political systems. The one cannot work without the others.
As the Mutiny Spreads, It's Clear:
Europeans Have Had Enough!
by ALEXANDER COCKBURN - CounterPunch.org
Watch Europe tip left and right as voters rise in fury against the austerity menu that's been bringing them to utter ruin. In Holland, the right-wing Freedom Party leader Geert Wilders brought down the governing coalition on Monday bellowing his defiance for the "Diktats from Brussels", and asserting that "We must be master of our own house." Labour and Christian Democrats, Holland's major parties, are crumbling.
Almost certainly doomed is France's Nicolas Sarkozy, with François Hollande poised to win in the second round, but Marine Le Pen's fiery, anti-banker populism has reaped her deserved rewards. As Ambrose Evans'Pritchard writes in the Daily Telegraph:
In Spain, Protests By Tens Of Thousands
Against Health, Education Cuts
By HAROLD HECKLE - HuffingtonPost.com
MADRID -- Tens of thousands of people across Spain protested Sunday against education and health care spending cuts as the country slid into its second recession in three years.
Unemployment is at a eurozone high of 24.4 percent, more than half of Spaniards under 25 years old are jobless, and Prime Minister Mariano Rajoy's conservative government has introduced stinging austerity measures in its first five months in office.
Death of a Fairy Tale
By PAUL KRUGMAN - NYTimes.com
This was the month the confidence fairy died.
For the past two years most policy makers in Europe and many politicians and pundits in America have been in thrall to a destructive economic doctrine. According to this doctrine, governments should respond to a severely depressed economy not the way the textbooks say they should — by spending more to offset falling private demand — but with fiscal austerity, slashing spending in an effort to balance their budgets.
The Trap
BY PATER TENEBRARUM - FinancialSense.com
The complexity of global economics has gone beyond comprehension. It can no longer be explained by any of the mostly western based and now obscure mainstream economic theories. Central bankers are in denial, still egoistically believing that their PhD diplomas have given them something akin to divine knowledge. Until they realize that they do not have the answer, they will continue down the path of destruction, never pausing to look for better alternatives.
Hollande's 'Growth Bloc'
spells end of German hegemony in Europe For two years Germany has had its way in Europe,
treating historic nations
much as Bismarck treated Bavaria – sovereign only in name.
By Ambrose Evans-Pritchard - Telegraph.co.uk
The French-led counter-attack and rumblings of revolt through every branch of the EU institutions last week have brought this aberrant phase of the eurozone crisis to an abrupt end.
"It's not for Germany to decide for the rest of Europe," said François Hollande, soon to be French leader, unless he trips horribly next week. Strong words even for the hustings.
"If I am elected president, there will be a change in Europe's construction. We're not just any country: we can change the situation," he said.
A Berlin Consensus?
By Andrew Sheng - Project-Syndicate.org
HONG KONG – A recent trip to Berlin brought back memories of an earlier visit in the summer of 1967, when I was a poor student who marveled at the Wall that would divide and devastate an entire society for another two decades. Berlin today is vibrant and rejuvenated, rebuilt by the German peoples' hard work and sacrifice to unify the country, and an apt setting for the conference of the Institute for New Economic Thinking (INET), which I was there to attend.
The conference's theme was "Paradigm Lost," with more than 300 economists, political scientists, systems analysts, and ecologists gathering to rethink economic and political theory for the challenges and uncertainty posed by growing inequality, rising unemployment, global financial disarray, and climate change. Almost everyone agreed that the old paradigm of neoclassical economics was broken, but there was no agreement on what can replace it.
Brussels to relax 3pc fiscal targets as revolt spreads The European Commission is preparing a major shift in economic strategy, fearing that excessive fiscal tightening will inflict unnecessary damage on a string of eurozone countries.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Officials believe they have enough legal leeway to relax budget deficit targets for eurozone states without violating the Stability and Growth Pact, though the plans risk a serious showdown with Germany. "The Stability Pact is not stupid. There are elements of flexibility when growth is lower than expected," said a senior Commission strategist.
Current EU rules stipulate that every state must cut its deficit to 3pc of GDP by next year but this is not written in stone. "So long as a country is doing its homework and taking 'effective action', we can show some flexibility," the strategist said.
Glenn Beck, National Decline
And The Story Of The Roman Empire
By Jerry Bowyer - Forbes.com
In my last installment in this series I argued that talk show host Glenn Beck was raising legitimate concerns about the state of the nation, but that he had a history of predictions of imminent disasters which did not pan out. Why didn't they? After all, the left really does have a strong totalitarian bent. No nation is guaranteed eternal life, let alone eternal prosperity and hegemony. And the United States is, indeed, aggressively moving in the wrong direction.
So why didn't the dollar collapse? Why is it still the reserve currency of the world? Why don't we have hyperinflation? Why did gold stall and then fall last summer? Was there a food shortage? Nope. Widespread urban violence? Nope. Depression, stock market collapse, bond market collapse? Nope, nope and nope. Why not?
25 Horrible Statistics About The U.S. Economy
That Barack Obama Does Not Want You To Know
By Michael Snyder - EndOfTheAmericanDream.com
The human capacity for self-delusion truly is remarkable. Most people out there end up believing exactly what they want to believe even when the truth is staring them right in the face. Take the U.S. economy for example. Barack Obama wants to believe that his policies have worked and that the U.S. economy is improving. So that is what he is telling the American people. The mainstream media wants to believe that Barack Obama is a good president and that his policies make sense and so they are reporting that we are experiencing an economic recovery. A very large segment of the U.S. population still fully supports Barack Obama and they want to believe that the economy is getting better so they are buying the propaganda that the mainstream media is feeding them. But is the U.S. economy really improving? The truth is that it is not.
[UK] Double-dip recession to trigger house price fall Britain's official return to recession has raised the risk of a sharp fall in house prices, economists have warned.
By Emma Rowley - Telegraph.co.uk
Fears for a slide in property values emerged after new figures revealed last week that the UK has "double-dipped" into a fresh downturn.
The figures are expected to deal a blow to already weak consumer confidence, underscoring the likelihood of a market slump.
"It is not good news for the housing market, given it's already struggling," said Howard Archer, chief UK economist at IHS Global insight. "In the current environment it's quite a large step for people to commit to buying a house."
Pricey oil could put the brakes on US recovery The outlook for the American economy is improving. That was the message from the Federal Reserve last Wednesday, as the US central bank issued new forecasts showing faster GDP growth and lower unemployment.
By Liam Halligan - Telegraph.co.uk
But no, America's economic prospects are actually getting worse. That was the clear implication of disappointing official growth numbers published less than 48 hours later.
The US economy expanded 2.2pc during the first quarter, we learnt, well below market expectations and sharply down from the 3pc growth rate notched up during the final three months of 2011.
Jerome Corsi: Oil creation process
discovered by Nazi's kept hidden by US Govt
Kenneth Schortgen Jr - Examiner.com
On the April 23rd broadcast of Coast to Coast AM, award winning journalist and author Dr. Jerome Corsi provided new information and insights on the vast oil conspiracy, where processes created by Nazi scientists during World War II are being suppressed by the US government and oil corporations to keep the price of petroleum high to the world.
In his interview with Corsi, host George Norry explores the abiotic oil theory that most scientists reject due to their promotion of 'Peak Oil', and how German scientists not only stumbled upon a process of how to change coal into workable liquid fuels, but also in what they believe is the process the earth uses to create abundant oil from the mantle and core regions of the planet.
53% of Recent College Grads Are Jobless
or Underemployed—How? A college diploma isn't worth what it used to be. To get hired, grads today need hard skills.
By Jordan Weissmann - TheAtlantic.com
More than half of America's recent college graduates are either unemployed or working in a job that doesn't require a bachelor's degree, the Associated Press reported this weekend. The story would seem to be more evidence that, regardless of your education, the wake of the Great Recession has been a terrible time to be young and hunting for work.
But are we really becoming another Greece or Spain, a wasteland of opportunity for anybody under the age of 25? Not quite. What the new statistics really tell us about is the changing nature, and value, of higher education.
A quarter of middle-class Americans are now so pessimistic about their savings that they are planning to delay retirement until they are at least 80 years old -- two years longer than the average person is even expected to live.
It sounds depressing, but for many it's a necessity. On average, Americans have only saved a mere 7% of the retirement nest egg they were hoping to build, according to Wells Fargo's latest retirement survey that polled 1,500 middle-class Americans.
The Family Farm Is Being Systematically
Wiped Out Of Existence In America
By Michael Snyder - theEconomicCollapseBlog.com
An entire way of life is rapidly dying right in front of our eyes. The family farm is being systematically wiped out of existence in America, and big agribusiness and the federal government both have blood all over their hands. According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today. That doesn't mean that there is less farming going on. U.S. farms are producing more than ever. But what it does mean is that farming is increasingly becoming dominated by the big boys. The rules of the game have been tilted in favor of big agribusiness so dramatically that most small farmers find that they simply cannot compete anymore. Back in 1900, about 39 percent of the U.S. population worked on farms. At this point, only about 2 percent of all Americans now live on farms. Big agribusiness, the food processing conglomerates, and big seed companies such as Monsanto completely dominate the industry. Unless something dramatic is done, the family farm is going to continue to be wiped out of existence. Unfortunately, it does not look like things are going to turn around any time soon.
Student Loan Debt Slaves In Perpetuity -
A True Story Of "Bankruptcy Hell"
Submitted by Tyler Durden - ZeroHedge.com
The numeric implications as well as the magnitude of the student loan bubble have been discussed extensively before. Yet just like most people's eyes gloss over when they hear billions, trillions or quadrillions, so seeing theexponential chart of Federal Student debt merely brings up memories of a math lesson from high school, or at best, makes one think of statistics. And as we all know statistics are faceless, nameless and can never apply to anyone else. It is the individual case studies that have the most impact. Which is why we would like to introduce you to Devin and Sarah Stang - student loan debt slaves in perpetuity.
Senate Passes Plan to Save Postal Service
By Newser - TheStreet.com
A plan to save the U.S. Postal Service from financial collapse has passed the Senate with unusual speed. The Senate plan calls for a major overhaul of the service, which is losing $36 million a day.
The bill would allow the service to cut its pension and retiree benefit costs, and to cut Saturday service by 2014, the New York Times reports. It would also place restrictions on the closing down of post offices and on compensation for Postal Service execs.
Think Tanks and Liberty
Mises Daily: by Gary North
There is a fight going on inside the Cato Institute, which is a very well-funded libertarian think tank that deals with policy issues. That is what think tanks do. They are policy oriented.
Cato is a nonprofit organization that is literally as well as figuratively inside the Washington Beltway, close to the corridors of power. Ed Crane runs it. He is now in a fight for control with board member Charles Koch.
This has happened before. It was cofounded by Murray Rothbard, Ed Crane, and Charles Koch in 1974, butRothbard was removed in 1981 by the board. The board wanted to move Cato into political policy making. Rothbard thought it should be devoted to scholarship.
On Facebook, Your Privacy Is Your Friends' Privacy No man is an island. Especially online.
By Megan Garber - TheAtlantic.com
We tend to think about privacy in personal terms: my data, my personal information, my relationship with Facebook/Twitter/Instagram/Pinterest. As our social networks grow and normalize, though, it's increasingly more accurate to think about privacy as a communal affair, something heavily contextual and owned, collectively, by networks. Which means that privacy is something that all of us, as individuals and as a group, are responsible for.
U.S. Escalates Google Case by Hiring Noted Outside Lawyer
By DAVID STREITFELD and EDWARD WYATT - NYTimes.com
Federal regulators escalated their antitrust investigation of Google on Thursday by hiring a prominent litigator, sending a strong signal that they are prepared to take the Internet giant to court.
The Federal Trade Commission is examining Google's immensely powerful and lucrative search technology, which directs users to hundreds of millions of online and offline destinations every day. The case has the potential to be the biggest showdown between regulators and Silicon Valley since the government took on Microsoft 14 years ago.
Pentagon preps chopping block for next round of base closures
By Rowan Scarborough-The Washington Times
Defense Department officials are quick to say the formal process of selecting U.S. military bases for closure will not begin until Congress says so.
But people inside the Pentagon already are talking about candidates for the politically charged process that often triggers intense opposition from governors, mayors and local business leaders.
How Apple Sidesteps Billions in Taxes
By CHARLES DUHIGG and DAVID KOCIENIEWSKI - NYTimes.com
RENO, Nev. — Apple, the world's most profitable technology company, doesn't design iPhones here. It doesn't run AppleCare customer service from this city. And it doesn't manufacture MacBooks or iPads anywhere nearby.
Yet, with a handful of employees in a small office here in Reno, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states.
Cybersecurity bill passes, Obama threatens veto
By David Goldman - Money.CNN.com
NEW YORK (CNNMoney) -- The House of Representatives, as expected, approved a controversial cybersecurity bill late Thursday, staring down a veto threat. But the fight to protect the United States from a cataclysmic cyber attack is far from over.
The Cyber Intelligence Sharing and Protection Act, which has been revised several times over the past week, allows the government and private companies to share information with one another with the aim of warding off cyber threats.
House Passes Controversial Cybersecurity Bill With Surprise Vote
by Michael del Castillo - Portfolio.com
The House of Representatives today passed a cybersecurity bill that encourages corporations to share information with the government. And now it's up to the Senate to decide whether the benefits of such an arrangement outweigh the costs.
In a surprise vote this morning, the House of Representatives has passed the controversial Cyber Intelligence Sharing and Protection Act, designed to encourage corporations to share information with the government in the name of protecting U.S. national security.
Missiles stationed on residential roof for Olympics The Army is set to station soldiers and high velocity surface-to-air missiles on top of a block of residential flats to ward off any airborne terror threats during the Olympics.
Telegraph.co.uk
Residents in the private, gated flats in Bow, east London, have received a leaflet warning them that a team of 10 soldiers and police will be stationed at the building - home to 700 people - for the duration of the Games.
The Ministry of Defence (MoD) leaflet says the missiles will only be fired as a last resort, said resident Brian Whelan.
He said: ''They are going to have a test run next week, putting high velocity missiles on the roof just above our apartment and on the back of it they're stationing police and military in the tower of the building for two months.
US Deploys F-22 Stealth Jets In Southwest Asia
by: Ria Novosti - EurasiaReview.com
The U.S. Air Force has deployed its fifth-generation stealth fighters, F-22 Raptor, in Southwest Asia, the Washington Post newspaper said, citing an Air Force spokesman.
The paper quoted An Air Force spokesman, Capt. Phil Ventura, as saying that the deployment was "regularly scheduled" and was directed at improving "tactical interoperability."
The number of F-22s, as well as the location of their base, was not disclosed "to protect operational security," Washington Post said.
Bo Xilai Said To Have Spied On Chinese Top Official
By Elly Mui– OpEd - EurasiaReview.com
In another surprise twist in the ongoing case of former Chongqing Party chief Bo Xilai, he is accused of being responsible for wire-tapping the phones of President Hu Jintao and that the discovery of the surveillance may have led to his downfall.
Until now, the downfall of Mr. Bo has been cast largely as a tale of a populist who pursued his own agenda too aggressively for some top leaders in Beijing and was brought down by accusations that his wife had arranged the murder of Neil Heywood, a British consultant, after a business dispute. But the hidden wiretapping, previously alluded to only in internal Communist Party accounts of the scandal, appears to have provided another compelling reason for party leaders to turn on Mr. Bo.
Steel lies behind Pyongyang's war rhetoric
By Donald Kirk - Atimes.com
SEOUL - The job of a journalist for the North Korean propaganda machine surely must be one of the more fun-filled gigs in the media business. Imagine the laughs the writers up there must be having as they dream up fresh turns of phrase with which to pillory South Korea's President Lee Myung-bak.
"The mischief made by rat-like Lee Myung-bak reminds one of a rabid dog barking towards the sky," goes one of the lines churned out by Pyongyang's Korean Central News Agency (KCNA). Then, as if the "rabid dog" image were not compelling enough, the next sentence mangles the metaphor by calling Lee's utterances "no more than squeaks made by the rat before being killed by all people for its wrong doings".
What's Iran Up To? We Know, Says Netanyahu
By Ken Blackwell (Archive) - PatriotPost.us
Editor's Note: This column was co-authored Bob Morrison
It was just a short clip on CNN. Reporter Erin Burnett recited some statistics that suggest Iran's oil tankers are all tied up, that the Islamic Republic's oil revenues have been hard hit. Economic sanctions have been tightened on the Mullahs' tyrannical regime by the UN, the European Union, and the U.S.
"It appears the sanctions are working," said Burnett. She challenged Prime Minister Benjamin Netanyahu's assessment of Iran's headlong drive to build a nuclear weapon.
US caught between Iran and Israel
By Kaveh L Afrasiabi - ATimes.com
With less than a month to the much-anticipated meeting in Baghdad between Iran and the "P5+1" nations, indications are that the two sides are seriously contemplating successful talks that could yield a mutually acceptable breakthrough and pave the way to a gradual resolution of the Iran nuclear crisis.
The "P5+1", also known as the "Iran Six" - the permanent members of the United Nations Security Council (the United States, Britain, France, China and Russia) plus Germany - have been involved in negotiations with Iran for several years over its nuclear program, which in some quarters is said to be designed towards building nuclear weapons, something Tehran steadfastly denies.
Gold Daily and Silver Weekly Charts - Gold to $10,000 oz.?
JESSE'S CAFÉ AMÉRICAIN
In general I do not like to post flat out projections for anything at much higher than the current market price, but directionally I think we might be facing a market dislocation in the metals to the upside for some fairly well identified fundamental and technical reasons.
I do not think that a domestic US gold standard is inevitable at all. I think it is still rather unlikely.
But I do believe that gold and possibly silver will have an important role to play in international trade.
But first things first. Gold must break up and take out the small and then the larger symmetrical triangles and retest the previous high.
Is gold going to spike to $3,000 on a short squeeze
as China uses gold to buy oil from Iran?
By: Peter Cooper - GoldSeek.com
Legendary gold trade Jim Sinclair is seriously suggesting that gold could spike to $3,000 in a short squeeze because of the Chinese decision to pay for oil in gold bullion (listen here). Basically there will be a sudden demand for physical gold that cannot be met and short sellers will be forced to cover and buy gold at higher prices.
He told King World News: 'You have seen in the last month, a phenomena. If you have eyes in your head, you have to know when the gold banks enter into the gold market, offering more for sale than would be mined in the next five years, they are not in there to sell anything. They are in there to manipulate the price.
Comex Gold boosted by softer dollar, technical buying
NEW YORK (Commodity Online): Comex gold is stronger as the dollar index softens, and the yellow metal is also getting some support on the technical side, said Charlie Nedoss, senior market strategist with Olympus Futures.
The June dollar index tested support around the 200-day moving average. "If we close below the 200-day, it's pretty negative for the dollar, so that kind of got things going (in gold) and the weak jobless claims kept us up here," Nedoss added.
Gold bounces after FOMC,
stable ETF demand are favorable signs: HSBC
NEW YORK (Commodity Online): Gold's ability to hold up despite no indications of further Federal Reserve easing on the horizon, coupled with steady exchange-traded-fund holdings despite price declines in the last two months, are favorable signs for the metal, said HSBC in a commodity research note.
Gold initially fell after a Federal Open Market Committee statement Wednesday did not hint at further quantitative easing. "Although the Fed did not announce another round of easing, intentions to keep monetary policy at highly accommodative levels are a bullish case for gold prices, we believe," HSBC added.
Equities Will Catch Up to Higher Gold Price
GoldSeek.com
Ongoing inflation pressures and China's investments in the African gold supply chain point to a higher gold price according to Matt Badiali of Stansberry & Associates. In this exclusive Gold Report interview, Badiali says bullion in all its forms belongs in every portfolio and when it comes to equities, investors have their choice of business models—dividend payers, prospect generators and royalty companies.
The Gold Report: Matt, in the February 2012 edition of Stansberry'sInvestment Advisory, Porter Stansberry predicted gold would hit $9,600 an ounce (oz) someday. How should investors protect themselves from this coming crisis?
Matt Badiali: In general, I agree with Porter's thesis. Bullion—gold, silver coins or bars—should be part of everyone's portfolio. It is one of the best anchors against inflation. Gold and gold stocks also are important holdings because as the value of paper money falls, the value of gold rises.
Gold still 'significantly under owned': Sharps Pixley
NEW YORK (Commodity Online): Ross Norman, CEO of Sharps Pixley, describes gold as "under-owned" and sees potential for another wave of retail investment demand on the horizon, particularly amid worries about an economic collapse in Europe and the future of the euro.
He points out that "tsunamis" of physical gold buying occurred in Europe and 2008 and 2010 during previous financial crises.
"In the year that we commemorate the (100-yaer anniversary of the) loss of Titanic, it is worth reflecting the crucial role of lifeboats in a crisis," Norman said.
"History does not repeat itself, but it sure does rhyme." (Mark Twain)
Between 1970 and 1979, the silver price was increasing steadily from $1.50 to $6, before taking off in September 1979 from $10 to $50 within 5 months. During that bull cycle, demand for silver did not increase but actually declined (sharply in 1979). It was as late as 1983 when demand increased confidently from 12,000 to 27,000 tons per year until 2000 – yet the silver price was in a 20 year bear market during that time. In 2003, when silver started its new bull market, the demand actually dropped to 23,000 tons until 2005 – during which 2 years silver almost doubled from $4.50 to $8. Since 2005, demand is rising stronger than ever, having reached 33,000 tons in 2010, whereas the silver price is rising strongly as well.
The initial comparisons indicate one important phenomenon in the silver market, namely that (industrial) silver demand is "price inelastic": that is, changes in price have a relatively small effect on the quantity demanded. The demand for other commodities is known to be "price elastic": that is, changes in price have a relatively large effect on the quantity demanded (if tomato prices blow up, go bananas).
Derivatives: The Unregulated Global Casino for Banks
9 Biggest Banks' Derivative Exposure - $228.72 Trillion
Demonocracy.info
SHORT STORY: Pick something of value, make bets on the future value of "something", add contract & you have a derivative.
Banks make massive profits on derivatives, and when the bubble bursts chances are the tax payer will end up with the bill.
This visualizes the total coverage for derivatives (notional). Similar to insurance company's total coverage for all cars.
LONG STORY: A derivative is a legal bet (contract) that derives its value from another asset, such as the future or current value of oil, government bonds or anything else. Ex- A derivative buys you the option (but not obligation) to buy oil in 6 months for today's price/any agreed price, hoping that oil will cost more in future. (I'll bet you it'll cost more in 6 months). Derivative can also be used as insurance, betting that a loan will or won't default before a given date. So its a big betting system, like a Casino, but instead of betting on cards and roulette, you bet on future values and performance of practically anything that holds value. The system is not regulated what-so-ever, and you can buy a derivative on an existing derivative.
5 New Lies That The Federal Reserve
Is Telling The American People
By Michael Snyder - TheEconomicCollapseBlog.com
The Federal Reserve says that everything is going to be okay. The Fed says that unemployment is going to go down, inflation is going to remain low and economic growth is going to steadily increase. Do you believe them this time? As you will see later in this article, Federal Reserve Chairman Ben Bernanke has been dead wrong about the economy over and over again. But the mainstream media and many Americans still seem to have a lot of faith in the Federal Reserve. It doesn't seem to matter that Bernanke and other Fed officials have been telling the American people lies for years. As I always say, most people believe what they want to believe, and many people seem to want to have blind faith in the Federal Reserve even when logic and reason would dictate otherwise. The truth is that things are not going to be getting much better than they are right now. When the next wave of the financial crisis hits, the U.S. economy is going to fall back into recession, financial markets are going to crash and unemployment is going to absolutely skyrocket. But you will never hear any of that from the Federal Reserve.
Bernanke says bond purchases still an option
By Martin Crutsinger - AP - WashingtonTimes.com
WASHINGTON (AP) — Federal ReserveChairman Ben S. Bernanke said Wednesday that further bond purchases by the Fed remain "very much on the table" if the economy needs further support.
Mr. Bernanke said the central bank is prepared to take additional actions, referring to a possible third round of bond buying. Two now-expired programs of Fed bond purchases were intended to push down long-term interest rates to encourage borrowing and spending.
Jim Grant On The Monetary Priesthood's "Atlas Complex"
Submitted by Tyler Durden - ZeroHedge.com
The bow-tie-and-bespectacled Jim Grant once again takes the centrally-planned 'Office of Unintended Consequence' (aka The Fed) to task in a thoughtful exchange with Capital Account's Lauren Lyster. Reflecting on his recent opportunity to speak directly to various Fed officials, he found one particular question (on the perceived 'mass starvation' that occurred in the brutal earlier Depression beginning in 1920 which ended rapidly without the need for monetary stimulation) most disturbing in its summation of the central bank's 'Atlas Complex' - or how would we get up and go to work in the morning without them. The attitude of our Monetary Priesthood, he analogizes, is that unless they are active in their prayers and devotions, who knows what might happen? Grant goes on to discuss the hypocrisy of Bernanke (noting the importance of free market prices to his students and yet controlling interest rates overtly in the market-place) and highlights interest rates role as the traffic light signal in a market economy providing a critical input to our perception of value in stocks, bonds, real estate, Silicon Valley Startups, and so on andbecause these rates are manipulated we live and invest in a hall-of-mirrors leaving us with a distorted vision of the real-world.
The Road to Surfdom Storied Hatteras Island is threatened
with depopulation the modern way.
By SCOTT HOGENSON - The American Spectator.org
America's roads connect us with our lives. They carry us on mundane trips to work and school, adventurous treks to parts unknown, visits to friends and family. Roads are the arteries of the American Body, providing the lifeblood of commerce and recreation. But one road in particular has become the target of environmental tyranny, posing a grave threat to the people who rely on it for their livelihood and safety.
It is called Highway 12, a simple two-lane affair that serves as the lifeline for the villagers who live on Hatteras Island, situated among North Carolina's fabled Outer Banks. A narrow barrier island anchored many miles in the North Atlantic Ocean -- some refer to it as a giant sandbar -- Hatteras has but one main road which is the only way on or off the island other than boat or private aircraft. It is a necessity of life for the sturdy fishermen, shopkeepers, and tradesmen whose families have lived on Hatteras for generations
Spain Cut by S&P for 2nd Time This Year on Banks, Economy
By Cordell Eddings and Cheyenne Hopkins - Bloomberg.com
Concerns that Spain will have to provide further fiscal support to the banking sector as the economy contracts prompted Standard & Poor's to cut the nation's sovereign credit rating to BBB+ from A.
Spain's short-term rating was lowered to A-2 from A-1, while the outlook on the long-term rating is negative, New York- based S&P said in a statement yesterday.
The nation's 10-year borrowing costs have climbed about 70 basis points this year as Prime Minister Mariano Rajoy struggles to convince investors he can control public finances amid soaring unemployment and a contracting economy. Banks threaten to disrupt the premier's efforts as bad loans reach the highest levels in almost two decades.
Milwaukee Red Cross Told To Prep
For Chicago Evacuation During NATO Summit
By Mike Parker - CBSChicago
CHICAGO (CBS) – Is there a secret plan to evacuate some residents of Chicago in the event of major trouble during the NATO summit next month? CBS 2 has uncovered some evidence that there is. It comes from the Milwaukee area branch of the American Red Cross.
CBS 2 News has obtained a copy of a Red Cross e-mail sent to volunteers in the Milwaukee area.
It said the NATO summit "may create unrest or another national security incident. The American Red Cross in southeastern Wisconsin has been asked to place a number of shelters on standby in the event of evacuation of Chicago."
Bill Gross On Europe's Dysfunction And US Double-Dips
Submitted by Tyler Durden - ZeroHedge.com
PIMCO's Bill Gross spent a longer-than-soundbite period discussing QE3, the chance of a US double-dip, and Europe's ongoing dysfunction with Trish Regan on Bloomberg Television this afternoon. Given more than his typically limited-to-ten-second thoughts some other media outlets appear to prefer, the old-new-normal-bond-king believes theFed will resist another round of quantitative easing in the short-term but "if unemployment begins to rise for two-to-three months then QE3 is back on". Noting that investors should focus on nominal GDP growth tomorrow, he goes on to dismiss the idea that the US can decouple from a troubled Europe pointing the political dysfunction between the Germans and the rest as greater than the polarity between Democrats and Republicans here at home. Preferring to play a slightly levered long bet on low rates holding for a longer-period, he like MBS (as we have discussed in the past) but does not see the 10Y yield dropping precipitously from here though he does echo our thoughts entirely in his view of the 'flow' being more critical than the 'stock' when it comes to the Fed's balance sheet and hence the June end-of-Twist may be a volatile period for all asset classes.
Gross Cuts Treasuries, Raises Mortgages in Fed Buy Bet
By Susanne Walker and Trish Regan - Bloomberg.com
Pacific Investment Management Co.'s Bill Gross said that while more monetary stimulus isn't likely at the moment, additional quantitative easing remains an option for the Federal Reserve if employment growth is sluggish.
"The chairman has not ruled it out," Gross, who runs the world's biggest bond fund, said during a Bloomberg Television "Street Smart" interview with Trish Regan. "If we see some weak employment reports over the next few months, then QE3 is back on."
Keiser Report "Tainted Sinkholes Of Fraud"
Further informations about topics addressed are available in favourites, play lists on my channel and complementary video responses. RT "In this episode, Max Keiser and co-host, Stacy Herbert discuss the fact that the economy is naked with tainted sinkholes of fraud and ex-Citigroup board member, Richard Parsons, is blaming Glass Steagall. In the second half of the show Max talks to activist Reverend Billy about living in public, taking action and casting out Blythe's demons."
Bernanke Takes On Krugman's Criticism Ignoring Own Advice
By Jeff Kearns and Craig Torres - Bloomberg.com
Federal Reserve Chairman Ben S. Bernanke took on Nobel prize-winning economist Paul Krugman yesterday and called his advice to reduce unemployment by boosting inflation "reckless."
"The question is, does it make sense to actively seek a higher inflation rate in order to achieve" a slightly faster reduction in the unemployment rate, Bernanke said yesterday to reporters after a Federal Open Market Committee meeting. "The view of the committee is that that would be very reckless."
A Time for Choosing
By JAMES PIERESON - The American Spectator.org
Better that we become a nation of choosers rather than beggars. An introduction to our special symposium.
When the Soviet empire collapsed 25 years ago, many believed that the battle for liberty and limited government had been won. It was only a matter of time, they thought, until America's centrally planned welfare state would give way to a more rational system based upon competition and citizen choice in areas such as education, health care, and retirement planning. They were wrong. Government has continued to grow at all levels in the United States since the Iron Curtain and the Berlin Wall came down, consuming more resources, imposing ever more burdensome regulations on business, and running up unprecedented levels of debt. While our leaders cheered the collapse of socialism abroad, they still supported highly centralized government programs at home.
Child agricultural regulations withdrawn
Michael McGuire - US Senate Examiner
A controversial move to curb young people under 16 from working in agricultural settings was dropped Thursday by the U.S. Department of Labor.
"The decision to withdraw this rule – including provisions to define the 'parental exemption' – was made in response to thousands of comments expressing concerns about the effect of the proposed rules on small family-owned farms," theLabor Department said. "To be clear, this regulation will not be pursued for the duration of the Obama administration."
Student Loan Debt Slaves In Perpetuity -
A True Story Of "Bankruptcy Hell"
Submitted by Tyler Durden - ZeroHedge.com
The numeric implications as well as the magnitude of the student loan bubble have been discussed extensively before. Yet just like most people's eyes gloss over when they hear billions, trillions or quadrillions, so seeing theexponential chart of Federal Student debt merely brings up memories of a math lesson from high school, or at best, makes one think of statistics. And as we all know statistics are faceless, nameless and can never apply to anyone else. It is the individual case studies that have the most impact. Which is why we would like to introduce you to Devin and Sarah Stang - student loan debt slaves in perpetuity.
First, for those who are still unfamiliar with the brush strokes, here is the big picture, courtesy of AP:
The Federal Reserve Bank of New York estimates 37 million Americans have student loan debt, totaling $870 billion. The average balance is around $23,000 (though that partly reflects a relatively small number of very large balances; the median is $12,800). Only 39 percent are paying down balances. An estimated 5.4 million borrowers have at least one student loan account past due.
Student loan subsidies in a tangled budget web
By Stephen Dinan-The Washington Times
Student loans versus oil companies. Or student loans versus high-paid lawyers and consultants. Or student loans versus Democrats' health care law.
While Capitol Hill spars over how to pay for the $6 billion cost, Republicans and Democrats made one thing clear this week: College students will get a helping hand from the government in the form of continued subsidies for their student loans.
But along the way, each party is offering up one of its favorite political targets in an effort to frame the debate as a choice between young college students and others whom each side paints as less worthy.
Cooling Job Market Takes Toll on U.S. Confidence: Economy
By Timothy R. Homan and Shobhana Chandra - Bloomberg.com
More Americans than forecast filed applications for unemployment benefits last week andconsumer confidence declined by the most in a year, signaling that a cooling labor market may restrain household spending.
Jobless claims fell to 388,000 from a revised 389,000 the prior week that was the highest since early January, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index declined to minus 35.8 from minus 31.4 the previous week.
A farewell to U.S. factories Calls to address decline in manufacturing misguided
By Gary Becker
BEIJING ( Caixin Online ) — Manufacturing employment as a fraction of total employment has been declining for the past half century in the United States and the great majority of other developed countries. A 1968 book about developments in the American economy by Victor Fuchs was already entitled "The Service Economy."
Although the absolute number of jobs in American manufacturing was rather constant at about 17 million from 1969 to 2002, manufacturing's share of jobs continued to decline from about 28% in 1962 to only 9% in 2011.
Foreclosures rose in major metro areas
in first quarter; jobless claims data mixed
By Brady Dennis - WashingtonPost.com
The number of foreclosures rose during the first three months of the year in more than half of the nation's metropolitan areas, even as such activity dipped from the previous year in many of those cities, according to a report released Thursday by the research firm RealtyTrac.
The numbers show that foreclosures increased during the first quarter in 26 of the country's 50 largest metro areas, with the highest jumps in Pittsburgh, Indianapolis and Philadelphia. The most significant decreases came in Portland, Las Vegas and Providence, R.I.
Insurance rebates totalling $1.3 billion
could be on the way this summer, study says
By N.C. Aizenman - WashingtonPost.com
This summer millions of Americans could find a check in the mail from an unexpected source: their health-insurance company.
Consumers and businesses will receive about $1.3 billion by this August from insurance plans that failed to meet a new standard in the 2010 health-care law, according to estimates released Thursday by the independent Kaiser Family Foundation. (That's assuming the law, or at least the portion of it containing the rule, is upheld by the Supreme Court, which is expected to issue its decision in late June.)
The Bailout Of The US Postal Service Begins:
Cost To Taxpayers -
$110,000 Per Union Vote "Saved Or Gained"
Submitted by Tyler Durden - ZeroHedge.com
A week ago, when reading between the lines of what had heretofore been considered an inevitable USPS episode of austerity in which hundreds of thousands of labor union workers would lose their jobs but in the process would streamline a thoroughly outdated and inefficient US Postal Office bureaucracy, we asked if a US Postal Service bailout was imminent, focusing on the following: "Enter Ron Bloom, Lazard, and the very same crew that ended up getting a taxpayer funded bailout for GM. From the WSJ: "The Postal Service's proposal to close thousands of post offices and cut back on the number of days that mail is delivered "won't work" and would accelerate the agency's decline, according to the six-page report by Ron Bloom, President Barack Obama's former auto czar, and investment bank Lazard Ltd., LAZ who were hired by the union in October." That's right: after all the huffing and puffing about "sacrifice" and austerity, the labor union took one long look at the only option... and asked what other option is there." The other option, it turns out courtesy of news from AP, is the first of many incremental bail outs of the US Postal Office, better known in pre-election circles as hundreds of thousands of unionized votes up for the taking, and which could be bought for the low low price of $11 billion in taxpayer money, or $110,000 per vote! And so the latest bailout of yet another terminally inefficient and outdated government entity begins.
Senate OKs Postal Service overhaul bill:
What's at stake for small businesses?
By J.D. Harrison - WashingtonPost.com
The Senate has approved a plan to overhaul the government's efforts to rescue the United States Postal Service, but the cost of the measure may make it a tough sell in the House.
On Wednesday, Senators voted 62 to 37 to approve the bill, which would give the deeply indebted agency nearly $11 billion toward buyouts and early retirement incentives for thousands of workers, simplify the process for closing post offices and mail distribution centers, and establish several new service standards.
Ken Salazar's Fairy Tale Energy PolicyOil
InstituteForEnergyResearch.org
Interior Secretary Ken Salazar trumpeted the Obama Administration's "all-of-the-above" energy policies at the National Press Club yesterday –policies that exclude oil and natural gas drilling on many federal lands and that kill coal production and consumption. Instead of making federal lands and waters owned by America open to oil and gas drilling and removing onerous regulations on fossil fuel industries, particularly coal, Secretary Salazar lashed out at Congress tantrum-like and demanded they pass legislation he wants.
Salazar: 'No one knows' if US headed to $9/gal gas
byJoel Gehrke - WashingtonExaminer.com
Department of Interior Secretary Ken Salazar said that "no one knows" if gasoline prices in the United States will reach $9 per gallon, and acknowledged that the possibility is outside his control.
"I don't think anyone can speculate what will happen with respect to oil prices and gas prices because they are set on the global economy," Salazar told reporterswhen asked if gas prices could reach $9 per gallon, as they have been in Greece. "Where it will all end, no one knows.
Interior Secretary:
'Not Even Harry Potter' Can Bring Down Gas Prices
By Matt Cover - CNSNews.com
(CNSNews.com) – "Not even Harry Potter" can bring down rising gas prices and nobody knows when they will stop rising, Interior Secretary Ken Salazar said Tuesday.
"No one has the ability – not even Harry Potter – to simply wave a magic wand and say that we're going to have gas prices at $2 or $2.50 or $3. It just doesn't work that way," said Salazar, whose department controls oil and gas drilling on federal lands.
The comments came after a speech at the National Press Club in Washington, D.C., on energy issues.
Salazar: House Republicans live in "imagined energy world,"
says they are members of a "flat earth" society
By ALLISON SHERRY - The Denver Post
WASHINGTON — Interior Secretary Ken Salazar sharply rebuked House Republicans Tuesday, calling them "charter members of the flat earth society" and saying they are living in an "imagined energy world … of fairy tales" in striking a balance between energy development and preserving lands.
"It's an invention of campaign years and political rhetoric. It's a place where you hear cries of drill, drill, drill, not withstanding the fact that most of the outer continental shelf resources are open for business," Salazar said in a speech at the National Press Club. "It's a place where up is seen as down, where left is seen as right, where oil shale seems to be mistaken every day in the U.S. House of Representative for shale oil, where record profits justify billions of dollars in subsidies."
High Court Skeptical of Obama's Use of Power
as Campaign Starts
By Greg Stohr - Bloomberg.com
President Barack Obama faces the specter of twin setbacks at the U.S. Supreme Court in the middle of his re-election campaign with justices questioning his assertion of federal power on both health care and immigration.
U.S. Solicitor General Donald Verrilli, the president's top courtroom lawyer, met resistance across ideological lines yesterday as he called on the court to strike down Arizona's crackdown on illegal immigrants. Even Justice Sonia Sotomayor, the court's only Hispanic and an Obama appointee, told Verrilli his argument is "not selling very well."
Pentagon preps chopping block for next round of base closures
By Rowan Scarborough - The Washington Times
Defense Department officials are quick to say the formal process of selecting U.S. military bases for closure will not begin until Congress says so.
But people inside the Pentagon already are talking about candidates for the politically charged process that often triggers intense opposition from governors, mayors and local business leaders.
Defense sources say, for example, that the Air Force has too many pilot training centers and can consolidate some to save money. It has retired 500 aircraft since the last round of closings in 2005, yet maintains about the same base infrastructure.
A Spanish Company Known As Scytl
Will Be Reporting Election Results
For Hundreds Of U.S. Jurisdictions On Election Day
By Michael Snyder - EndOfTheAmericanDream.com
Do you know who is going to be counting the votes on Election Day 2012? Most Americans never even think about this. Most Americans just assume that their votes will count and that the government will ensure that the counting process is done honestly and fairly. But is this really the case? Sadly, the vast majority of people never take the time to "look behind the curtain" to see how things really work. If they did, they might find themselves extremely upset about what they would find. The integrity of our voting process is of the utmost importance. If we do not have the ballot box, then what avenues for changing our government do we have left? Unfortunately, the integrity of our elections has been called into question quite a few times in recent years, and now a Spanish company known as Scytl will be involved in reporting election results for hundreds of jurisdictions across the United States this upcoming election day. Will those election results be accurate?
Feds' Use of Fake Cell Tower: Did it Constitute a Search?
By Kim Zetter - Wired.com
Federal authorities used a fake Verizon cellphone tower to zero in on a suspect's wireless card, and say they were perfectly within their rights to do so, even without a warrant.
But the feds don't seem to want that legal logic challenged in court by the alleged identity thief they nabbed using the spoofing device, known generically as a stingray. So the government is telling a court for the first time that spoofing a legitimate wireless tower in order to conduct surveillance could be considered a search under the Fourth Amendment in this particular case, and that its use was legal, thanks to a court order and warrant that investigators used to get similar location data from Verizon's own towers.
9 Reasons Wired Readers Should Wear Tinfoil Hats
By David Kravets - Wired.com
Fake Cell Phone Towers
You make a call on your cellphone thinking the only thing standing between you and the recipient of your call is your carrier's cellphone tower. In fact, that tower your phone is connecting to just might be a boobytrap set up by law enforcement to ensnare your phone signals and maybe even the content of your calls.
So-called stingrays are one of the new high-tech tools that authorities are using to track and identify you. The devices, about the size of a suitcase, spoof a legitimate cellphone tower in order to trick nearby cellphones and other wireless communication devices into connecting to the tower, as they would to a real cellphone tower.
Hands Off the Internet!
By Ron Paul
Dear Colleagues:
Please join me in opposing the Cyber Intelligence Sharing and Protection Act (HR 3523), which will create a monstrous coalition of big business and big government to rob Americans of their protections under the 4th Amendment of the Constitution.
CISPA permits both the federal government and private companies to view your private online communications with no judicial oversight, provided they merely do so in the name of "cybersecurity." But America is a constitutional republic, not a surveillance state-- and the wildly overhyped need for security does not trump the Constitution we all swore to uphold.
Another Bait and Switch? Obama Opposes CISPA. Yeah, Right
Even as drones are deployed domestically to spy on American citizens, Barack Obama is posing as a champion of privacy and civil liberties by threatening to veto the CISPA web snooping bill, just as his administration pretended to be hostile to the National Defense Authorization Act before signing it anyway.
CISPA battlefield: Facts & Figures
RT.com
The House of Representatives has approved CISPA, a controversial bill that will give the government additional levers to monitor the Internet. But what are its chances of being passed into law, and what will it mean for Internet users?
In spite of protest from the Obama administration that CISPA encroaches on the civil liberties of Americans, the House of Representatives is marching ahead with the legislation. It met on Thursday to discuss the controversial act ahead of Friday's decision.
In addition, the House Rules Committee dismissed a list of changes to the legislation suggested by the Center for Democracy and Technology (CDT). The amendments would have potentially limited private companies from sharing cyberthreat data with US government bodies.
Cybersecurity Measure Heads to House Floor
Despite Privacy Fears
By David Kravets - Wired.com
The House is scheduled as early as Thursday to begin debating cybersecurity legislation that privacy groups warn is a threat to civil liberties.
The Cyber Intelligence Sharing and Protection Act, or CISPA, is sponsored by Reps. Mike Rogers (R-Michigan) and Dutch Ruppersberger (D-Maryland). Its stated goal is a more secure internet, but privacy groups fear the measure breaches Americans' privacy along the way. The White House weighed in on Wednesday, threatening a veto unless there were significant changes to increase consumer privacy.
The Koch Brothers – Exposed!
By Julian Brookes - RollingStone.com
If the Koch brothers didn't exist, the left would have to invent them. They're the plutocrats from central casting – oil-and-gas billionaires ready to buy any congressman, fund any lie, fight any law, bust any union, despoil any landscape, or shirk any (tax) burden to push their free-market religion and pump up their profits.
But no need to invent – Charles and David Koch are the real deal. Over the past 30-some years, they've poured more than 100 million dollars into a sprawling network of foundations, think tanks, front groups, advocacy organizations, lobbyists and GOP lawmakers, all to the glory of their hard-core libertarian agenda. They don't oppose big government so much as government – taxes, environmental protections, safety-net programs, public education: the whole bit. (By all accounts, the Kochs are true believers; they really buy that road-to-serfdom stuff about the the holiness of free markets. Still, you can't help but notice how neatly their philosophy lines up with their business interests.) They like to think of elected politicians as merely "actors playing out a script," and themselves as supplying "the themes and words for the scripts." Imagine Karl Rove's strategic cunning, crossed with Ron Paul's screw-the-poor ideology, and hooked up to Warren Buffett's checking account, and you're halfway there.
U.S. Drones Can Now Kill Joe Schmoe Militants in Yemen
By Noah Shachtman - Wired.com
In September, American-born militant Anwar al-Awlaki and his son were killed by a U.S. drone strike in Yemen. In the seven months since, the al-Qaida affiliate there has only grown in power, influence, and lethality. The American solution? Authorize more drone attacks — and not just against well-known extremists like Awlaki, but against faceless, nameless, low-level terrorists as well.
A relentless campaign of unmanned airstrikes has significantly weakened al-Qaida's central leadership in Pakistan, American policymakers say. There, militants were chosen for robotic elimination based solely on their intelligence "signatures" — their behavior, as captured by wiretaps, overhead surveillance and local informants. A similar approach might not work in this case, however. "Every Yemeni is armed," one unnamed U.S. official told the Wall Street Journal. "So how can they differentiate between suspected militants and armed Yemenis?"
Federal Govt Attempts
to Seize Control of Food Retail System
An InfoWars exclusive interview with Kristen Canty, the director and producer of the new hard hitting documentary Farmageddon: The Unseen War on American Family Farms. Includes theatrical trailer of the film and video footage of armed authorities raiding family farms and stores.
State Officials In Alabama Close Gulf Shrimping After Scientists Find Severe Deformities
Submitted by George Washington - ZeroHedge.com
After scientists and fishermen have found severe deformities in a substantial percentage of Gulf seafood, the State of Alabama have moved to shut down shrimping.
WERC-FM local news reports:
Some area waters along the Gulf Coast will close to shrimping starting today. The areas closed are all waters in the Mississippi Sound, Mobile Bay, areas of Bon Secour, Wolf Bay, and Little Lagoon. The closure comes after scientists found smaller than average population of shrimp and lesions. They say the plan to test the water and will continue to run samples until the waters are re-opened. There is no set time when the waters will be open for shrimping again.
* * * * *
Hawk and Steve Quayle - 26 April 2012 - mp3
NATO and foreign troops on US soil [openly in Colorado, first, because Denver is backup location for COG - continuance of government] Alert: Q-hunt for nuclear materials on East Coast. More up-to-date intel on drills, tests, Ardent Sentry 2012 with Canada, etc..
NORAD and USNORTHCOM Conduct ARDENT SENTRY 2012
TheIntelHub.com
USNORTHCOM
PETERSON AIR FORCE BASE, Colo. - The North American Aerospace Defense Command and U.S. Northern Command will conduct a major exercise, ARDENT SENTRY 2012, focused on Defense Support of Civil Authorities, May 2 – 9, 2012.
The exercise will be primarily a Command Post Exercise, but there will be field training events within the exercise. Those events will take place in North Dakota, Oregon, Texas, Alaska, Connecticut and Nova Scotia and involve United States and Canadian military units.
- North Dakota, the Air Force Global Strike Command will respond to a simulated Nuclear Weapons Incident (NUWAIX) on Minot Air Force Base.
Russian Troops To Target Terrorists in America
As Part of DrillJoint U.S.-Russian anti-terror exercise
stokes fears of martial law
Paul Joseph Watson - Infowars.com
Russian airborne troops are set to train how to target terrorists in America as part of a joint anti-terror drill with the United States which will take place in Fort Carson, Colorado at the end of next month.
"Airborne troops from Russia and the United States would hold joint anti-terror drills in the U.S. state of Colorado between May 24 and 31," reports the Xinhua news agency, citing Russian Defense Ministry Col. Alexander Kucherenko. The story was also reported by Russian news outletRIA Novosti.
The Middle East Quartet An institutionalized failure sustained by U.S. complicity.
By DANIEL MANDEL - The American Spectator.org
Strange as it might seem, U.S. policy defers to others -- sometimes, more than is good for it. Thus, for some time, there has been not been much of a U.S. policy towards Israel and the Palestinians. There has been a Middle East Quartet policy. And it has taken the U.S. into an expensive dead-end.
The Quartet is a decade-old, hastily conceived grouping of the European Union, the Russian Federation, the United Nations, and the United States. It includes entrenched pro-Arab bureaucracies. Unsurprisingly, it has adopted policies that prolong rather than mitigate the Palestinian/Arab war on Israel -- while America funds both the Israelis and the PA.
International military operation looms for Syria
The new ceasefire set for May 5 could prove a turning point in the Syrian conflict. If the truce fails, an international peacekeeping intervention might become a reality.
Growing frustration over ongoing violence in spite of a recent ceasefire agreement is pushing world powers to search for new means to influence the confrontation.
A new ceasefire date, May 5, has been set to give mediation a chance. The peace process has been "severely compromised" recently, said Alain Juppe, French Foreign Minister on Wednesday.
As the UN Security Council has authorized the deployment of 300 international observers to monitor the situation, Juppe believes the new ceasefire will become a "moment of truth" to define whether mediation can resolve the conflict.
Gantz: IDF and other armies ready
to strike Iran's nuclear capabilities
DEBKAfile.com
Israel Prime Minister Binyamin Netanyahu acted Thursday, April 26, to correct the damaging impression of divided and uncertain perceptions of the Iranian nuclear threat left by statements delivered in the last two days by himself and Defense Minster Ehud Barak.
Israel's chief of staff Gen. Benny Gantz rallied to the task with an unambiguous comment that "other countries have readied their armed forces for a potential strike against Iran's nuclear sites to keep Tehran from acquiring nuclear weapons. The military force is ready. Not only our forces but other forces as well," he said without elaborating.
"We all hope it will not be necessary to use this force, but we are absolutely sure of its existence."
DEBKAfile reports from Washington that Gen. Gantz's words were seen in US official circles as the strongest affirmation yet from Jerusalem that Israel has partners for a direct attack on Iran's nuclear sites.
'US not ready to wage war against Iran'
RT.com
Despite conflicting statements from top Israeli officials on Iran's nuclear program, the threat of war remains high. US Colonel Douglas McGregor told RT that after an Israeli strike, Tehran won't need to build nuclear bombs - it will be given them. Russia Today: President Obama has put forward an ultimatum for Iran: either make progress with negotiators or face consequences, meaning war. Some say a strike [on Iran] may happen within the next few months. In your opinion, how realistic is that? Should we expect a war in summer? Douglas McGregor: A topical question right now in Washington DC. I think the answer right at the moment is no. President Obama is not remotely interested in waging war against Iran, so let's be clear about that. No one at the top of the United States military establishment is interested in waging war against Iran, and the intelligence community has made it abundantly clear that Iran is nowhere near the development of a nuclear warhead or the capacity to deliver one. So when you add those things up, it's very, very obvious, at least in the places that count, the White House and the Department of Defense, there is no interest in waging a war on Iran.
Gold to hit $7000/oz: Bank of America
NEW YORK (Commodity Online): In one of the highest predictions yet made by an investment bank analyst, Bank of America's MacNeil Curry sees gold prices hitting $7000/oz before ending the uptrend.
According to MacNeil, commodity bull markets end with a massive speculative blow off and they don't end quietly. If gold was topping out, the daily ranges would have span around $200/oz and we have not seen anything like it.
US Dollar VS Gold: Epic Money Battle
By: Jim Willie CB - GoldSeek.com
The so-called Global Financial Crisis is a term so widely used that it has earned its own acronym of GFC. When first seen, it seemed like girl friend club or some such, since many friends use GF loosely to refer to sweethearts. The GFC is falsely named, since it is more accurately described as a global monetary war with the USGovt vigorously defending its franchise in the USDollar for crude oil and trade settlement, and for bank reserves management. Take either away, and the other departs quickly, leaving the United States vulnerable to a quick ticket to the Third World marred by price inflation and supply shortage, even isolation in ring fences. On its own devices, the US is in as bad shape as the worst of the PIGS nations. The USGovt debt is above 100% of GDP finally. The annual deficit of $1.5 trillion could not be financed in normal methods. So the USFed is the adopted buyer of last resort, purchasing over 80% of new and recycled US debt issuance.
James Cameron and Google founder
plan to mine Gold, Platinum from asteroids
NEW YORK (Commodity Online): It might sound like straight out of James Cameron's multi billion dollar Avatar movie but the acclaimed director is actually joining hands with Google founder Larry Page to bankroll a venture to mine precious metals like gold and platinum from asteroids.
The project has been initiated by Washington based Planetary Resources which plans to tap the thousands of asteroids around Earth to extract their raw materials. A 98 foot asteroid can hold $50 billion worth of platinum.
So Long, US Dollar
By Marin Katusa, Casey Research - GoldSeek.com
There's a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country's importance in the world: the demise of the US dollar as the world's reserve currency.
For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar's valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon.
Using U.S. Dollars,
Zimbabwe Finds a Problem: No Change
By LYDIA POLGREEN - NYTimes.com
HARARE, Zimbabwe — When Zimbabweans say they are waiting for change, they are usually talking about politics. After all, the country has had the same leader since 1980.
But these days, Robson Madzumbara spends a lot of time quite literally waiting around for change. Pocket change, that is. He waits for it at supermarkets, on the bus, at the vegetable stall he runs and just about anywhere he buys or sells anything.
"We never have enough change," he said, manning the vegetable stall he has run for the past two decades. "Change is a big problem in Zimbabwe."
Not Enough Inflation?
Mises Daily: by John P. Cochran
Paul Krugman, in his recent New York Times column "Not Enough Inflation" (April 5, 2012), argues that what is most needed now to increase employment is more inflation. The Federal Reserve's dual mandate, full employment and price stability, is relevant and important. Since we have "more or less price stability" but are "nowhere near full employment," the "Fed is doing too little, not too much."
Joseph Salerno, in a recent post on Circle Bastiat, included Professor Krugman in an "elite" group of economists, including the IMF's Olivier Blanchard, Ivy League Professors Ken Rogoff and Greg Mankiw, and Fed chairman Bernanke, who believe, a la a stable Phillips curve, that "an acceleration of the inflation rate is the panacea for the still ailing U.S. economy."
Maintaining America's Prosperity
Requires A Single Fed Mandate
By Tom Wilson - Forbes.com
In 2008 and 2009, the Federal Reserve joined with the Administration and Congress to take bold and pervasive steps, some might even argue outside their boundaries, to successfully stabilize a teetering global economy. Now that we are past that crisis the Fed needs to narrow its role in the economy. If the fire department helps you escape a burning house, you're exceptionally grateful, but you aren't going to have them rebuild your home.
For the sake of America's prosperity, the Federal Reserve should focus on a single mandate: promoting dollar price stability rather than simultaneously striving for full employment. The Fed should back away from a dual mandate that requires it to attempt to steer the U.S. economy.
Keiser Report: Beggars Without Borders (E279)
In this episode, Max Keiser and co-host, Stacy Herbert discuss debt piles and thin dimes. They also discuss Christine Lagarde begging for money outside Penn Station while insider trading bankers 'charitably' talk to beggars at Grand Central. In the second half of the show Max talks to economist Michael Hudson about the austerity, debt and fraudulent conveyance.
Ben Bernanke's Paper Dollar Embodies Systemic Risk
By Charles Kadlec - DailyReckoning.com
04/25/12 The paper dollar is now the single most important source of systemic risk to the financial system, the world economy, and the security of the American people.
That is the lesson of the past 100 years that Federal Reserve Chairman Ben Bernanke did not teach during his four lectures at George Washington University's Graduate School of Business. Instead, he celebrated the importance of the extraordinary powers he and his fellow governors have to manipulate interest rates and the value of the dollar in the name of economic growth and stability.
Bernanke's Race Against Time
Ben Bernanke's position as Chairman of the Board of Governors will end on January 31, 2014. He is now in a race against time.
(1) Will the American economy fall back into recession before then, thereby negating the tripling of the monetary base under his chairmanship? Will he get out before mass inflation rears its ugly head?
(2) Will he be able to pass on the Old Maid of price inflation, the way that Alan Greenspan passed on the Old Maid of the Great Recession to him?
He suffers from a major liability: he is an academic. In the history of the Federal Reserve, only three men who have held the position of Chairman of the Board of Governors have had a PhD in economics.
Fed rejects new action, sees mixed signals on economy
By Zachary A. Goldfarb, - WashingtonPost.com
Federal Reserve Chairman Ben S. Bernanke appeared skeptical that the nation's jobs outlook would improve any time soon, but he stood staunchly by the Fed's decision Wednesday to keep interest rates near zero and to avoid any new actions to boost the economic recovery.
During a press conference after the central bank's two-day policy meeting, the Fed chief said that officials are "entirely prepared to take" more steps to try to boost job creation, including "balance sheet action." But he repeatedly noted that the central bank has already taken extraordinary measures to stimulate growth — such as its interest rate policy and two rounds of bond-buying known as "quantitative easing" — and that "we see monetary policy being approximately in the right place at this point."
Geithner Says Economy Faces Risk From Europe Crisis, Iran
By Cheyenne Hopkins - Bloomberg.com
Treasury Secretary Timothy F. Geithner said the U.S. faces risks from the crisis in Europe while the confrontation with Iran has helped drive up oil prices.
"We still face some risks ahead," Geithner said to the Portland City Club today. "We still live in a dangerous and uncertain world, with Europe confronting a severe and protracted crisis. The world is engaged in a critical struggle with Iran, which has added to upward pressure on oil prices."
All the President's Central Bankers How Obama Shored Up His Legacy at the Federal Reserve
By Sylvester Eijffinger and Edin Mujagic - ForeignAffairs.com
Regardless of who wins the 2012 U.S. presidential election, President Barack Obama will end his first term having decisively shaped U.S. monetary policy for at least the next two decades. Thanks to a stroke of lucky timing -- the Federal Reserve Board happened to have an unusually high number of vacancies during the president's first term -- Obama will have either appointed or reappointed every single one of the seven members of the Federal Reserve's Board of Governors, including its chairman, Ben Bernanke, by the end of 2012. With the governors each set to serve a 14-year term, they will ensure Obama's long-term impact on the U.S. economy.
Banks are on a eurozone knife-edge
By Martin Wolf - FT.com
We want to get away from them. But "developments in the euro area remain the key risk to global financial stability. Recent important policy steps have brought some much-needed relief to financial markets, as sovereign spreads have eased, bank funding markets have reopened, and equity prices have rebounded. However, new setbacks could still occur. The path ahead has significant ... risks, and policies need to be further strengthened to secure and entrench financial stability." Thus did the International Monetary Fund's Global Financial Stability Report assess progress towards what it calls, optimistically, a "quest for lasting stability". Many would settle for something far less ambitious: a few years of stability would be an unexpected delight.
Spanish banks 'vulnerable' and may need public help, says IMF
By Howard Schneider - WashingtonPost.com
Spain, already struggling to contain its public debts, may need to pump more taxpayer money into its ailing banks to clear away tens of billions of dollars in bad real estate loans, the International Monetary Fund reported on Wednesday.
In an overview of the country's financial system, the IMF said that despite extensive restructuring, Spain's banking sector "remains vulnerable." It needs more capital and a strategy for quickly clearing away the legacy of a collapsing property bubble.
How Employment and Economic Growth
are Hindered by Politics
By Bill Bonner - DailyReckoning.com
04/25/12 Baltimore, Maryland – Nothing special in yesterday's financial news. So let's turn from farce to fraud…that is, to politics.
President Obama has to defend his policies, pretending that they have brought a real recovery. One of the pillars of his case, say the papers, is that unemployment has gone down.
The trouble with this as a re-election strategy is that the people who need to vote for Obama are the people who know it isn't true.
Brussels to relax 3pc fiscal targets as revolt spreads The European Commission is preparing a major shift in economic strategy, fearing that excessive fiscal tightening will inflict unnecessary damage on a string of eurozone countries.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Officials believe they have enough legal leeway to relax budget deficit targets for eurozone states without violating the Stability and Growth Pact, though the plans risk a serious showdown with Germany. "The Stability Pact is not stupid. There are elements of flexibility when growth is lower than expected," said a senior Commission strategist.
Current EU rules stipulate that every state must cut its deficit to 3pc of GDP by next year but this is not written in stone. "So long as a country is doing its homework and taking 'effective action', we can show some flexibility," the strategist said.
Brussels has tough time justifying bigger budget
BY HONOR MAHONY - EUObserver.cm
BRUSSELS - The European Commission on Wednesday (25 April) had an uphill struggle explaining why next year's EU budget needs to go up by 6.8 percent, even as it preaches austerity to member states.
The increase - to €138 billion from €129.1 billion for 2012 - is largely due to promised payments for various projects in member states that are now being called in.
The finer points of the EU's multi-annual budget system - which sees member states make payment promises only to baulk at actually footing the bill further down the line - are being lost on the EU public however, as Brussels becomes increasingly associated with hypocrisy on spending.
UK is back in recession Longest slump in peacetime as Britain slides into recession
Britain is suffering the longest peacetime slump in a century, economists said on Wednesday as figures confirmed a double-dip recession.
By James Kirkup - Telegraph.co.uk
The Office for National Statistics (ONS) surprised the City by announcing that the economy shrank by 0.2 per cent in the first quarter of 2012, the second consecutive fall.
The unexpected news meant that Britain has suffered a longer and deeper decline than almost every other advanced economy.
According to Michael Saunders, a Citigroup economist, Britain is now suffering "the worst recession recovery cycle of the last 100 years" with the exception of the period of the Second World War.
Cyprus gets set to umpire EU budget talks
BY ANDREW RETTMAN - EUObserver.com
BRUSSELS - The incoming Cypriot presidency is getting ready to tackle the biggest and ugliest dossier in the EU - the money - amid problems in its own backyard.
"It's the big bang in the EU because everything gets put on the table - own resources, administrative spending, external aid, cohesion, agriculture," a Cypriot source told EUobserver in Brussels on Wednesday (25 April), referring to future talks on the Union's next €1-trillion-plus seven-year budget.
Greek central bank chief warns of euro exit
BY VALENTINA POP - EUObserver.com
BRUSSELS - Greece's central bank governor said his country would have to leave the eurozone if politicians do not stick to the austerity programme after elections due to take place on 6 May.
"What is at stake is the choice between an orderly, albeit painstaking, effort to reconstruct the economy within the euro area, with the support of our partners, or a disorderly economic and social regression, taking the country several decades back, and eventually driving it out of the euro area and the European Union," George Provopoulos said in a speech on Tuesday (24 April).
Who Should Run the Global Economy?
by Michael S. Rozeff - LewRockwell.com
The correct answer is simple: NO ONE.
It is not right morally that anyone should run the global economy. Morally, no one has that right. No groups of people have that right. No government has that right. No groups of governments have that right. No companies have that right. No banks, no central banks, no manufacturers, no corporations, no nonprofit organizations, no organizations or persons of any kind have that right.
22 Red Flags That Indicate That Very Serious Doom
Is Coming For Global Financial Markets
By Michael Snyder - TheEconomicCollapseBlog.com
If you enjoy watching financial doom, then you are quite likely to really enjoy the rest of 2012. Right now, red flags are popping up all over the place. Corporate insiders are selling off stock like there is no tomorrow, major economies all over Europe continue to implode, the IMF is warning that the eurozone could actually break up and there are signs of trouble at major banks all over the planet. Unfortunately, it looks like the period of relative stability that global financial markets have been enjoying is about to come to an end. A whole host of problems that have been festering just below the surface are starting to manifest, and we are beginning to see the ingredients for a "perfect storm" start to come together. The greatest global debt bubble in human history is showing signs that it is getting ready to burst, and when that happens the consequences are going to be absolutely horrific. Hopefully we still have at least a little bit more time before the global financial system implodes, but at this point it doesn't look like anything is going to be able to stop the chaos that is on the horizon.
JIM ROGERS: Something Is Wrong In The Stock Market
And You Better Be Worried
By Sam Ro - BusinessInsider.com
Commodities guru Jim Rogers was on Fox Business News this afternoon predicting disaster for 2013.
"First of all, we have tax increases January 1," warned Rogers. "Secondly, we've had recession every four to six years... Next year, it's four to six years."
In addition to that awful economic back drop, Rogers is concerned about a contradiction in that markets.
"Now I've been investing for a long time and I have noticed when good news comes out and stocks go down, something's wrong. So you better be worried," warned Rogers. "I don't know what's wrong. But I know we've had a great first quarter. One of the best first quarters in history. And now good news is coming out and stocks are going down."
The Secret System that Blew Another Hole in the Euro
BY MARTIN HUTCHINSON, Global Investing Strategist, Money Morning
This may sound arcane and boring, but I promise you it's not.
What I've learned will blow yet another hole in the already shaky euro.
It begins with Bernd Schunemann, a law professor at the Ludwig-Maximilian University in Munich. He has sued the German Bundesbank over its participation in the Eurozone "Target-2" settlements system.
Now I'll be the first to admit that yes, my eyes do glaze over when thinking about settlements systems-and I used to be a merchant banker.
The Great American Social Security Lie
By Rick Ungar, Contributor - Forbes.com
The headline machine was in overdrive on Monday with the arrival of the latest Trustees' Report on Social Securityand Medicare. And while much of the media continues to herald the coming bankruptcy of Social Security, they do so at the risk of ignoring the real story—a story that is neither difficult to explain nor hard to understand.
Technically speaking, an entity is deemed bankrupt when its obligations exceed its revenues. Therefore, if the projections are accurate—and absent modifications to resolve the funding problems—Social Security will, indeed, be deemed bankrupt in 25 years.
However, that does not mean that the money will be all gone come 2035. Nor do the headlines explain why we have the projected shortfall.
Case-Shiller Index: Is This the Housing Market Bottom?
BY DON MILLER, Contributing Writer, Money Morning
Analysts, government officials and certainly homebuyers are spending hours trying to figure out if we have reached the housing market bottom.
Yesterday's (Tuesday's) data would seem to suggest the bottom is a bit bumpier than most people think.
According to the S&P/Case-Shiller home price index of 20 cities, home prices declined 3.5% from a year ago, while the 10-city composite slipped 3.6%. That meant fresh new post-bubble lows for home prices.
New-home sales in March also fell from their February level, the Commerce Department said. Together, they pointed to a more lackluster market.
Case Shiller: Housing Prices Down Again
By Greg Hunter's USAWatchdog.com
Housing prices are back to where they were in late 2002 according to the latest Case-Shiller report that tracks housing prices. February data shows 15 of 20 cities surveyed showed price declines. Overall, the prices sank 3.5% annually. Atlanta fared the worst with a 17.3% year over year fall in home prices. Phoenix was one of the few bright spots with a 3.3% increase. The report said,"Phoenix has posted two consecutive months of positive annual rates, with its latest being +3.3%, and five consecutive positive monthly returns." But don't start breaking out the party hats and champagne. The report also said, "Phoenix, which is one of the cities that fared the worst during the crisis, has now posted two consecutive months of positive annual returns and five consecutive positive monthly returns. However, it is still down 54.2% from its peak."
The United States Has Plenty Of Oil:
10 Facts About America's Energy Resources
That Will Blow Your Mind
By Michael Snyder - EndOfTheAmericanDream.com
The United States is not running out of oil. In fact, nobody on the entire globe has more energy resources than the United States does. The truth is that we are absolutely swimming in oil and natural gas and we have so much coal that we have no idea what to do with it all. At current consumption rates, America has enough energy resources to completely satisfy all of its needs well into the 22nd century. If we would just access those resources, we would not have to import a single drop of foreign oil. But most Americans don't realize that we have plenty of oil. In fact, our education system has brainwashed most Americans into believing that our energy resources are rapidly being depleted and that we will soon enter a great energy crisis. We are all constantly told that we must transition to "green energy" before it is too late. But the reality is that America is an energy rich nation and new discoveries of oil and natural gas deposits are being made all the time. Shouldn't someone tell the American people the truth about these things?
Another Way To Kill US Farmers:
Seize Their Bank Accounts on Phony Charges
By Rady Ananda - LewRockwell.com
Monsanto's Food and Drug Administration can't close down small dairies and private food clubs fast enough, bursting on the scene with guns drawn as if the criminalized right to contract for natural foods we've consumed for millennia deserves SWAT attention.
Now, Obama has the Dept. of Justice going after small farmers under the post-911 "Bank Secrecy Act" which makes it a crime to deposit less than $10,000 when you earned more than that.
US Labor Department Is NOT Banning Children
From Doing Farm Chores Or 4-H
by Brooks Bayne - TheGraph.com
....This Internet urban (or rural, in this case) myth is much ado about nothing. In the very US Labor Department proposal that the Daily Caller cited, the language is clear about this. From the 2nd paragraph of the US Labor Department proposal (my emphasis in bold):
The department is proposing updates based on the enforcement experiences of its Wage and Hour Division, recommendations made by the National Institute for Occupational Safety and Health, and a commitment to bring parity between the rules for young workers employed in agricultural jobs and the more stringent rules that apply to those employed in nonagricultural workplaces. The proposed regulations would not apply to children working on farms owned by their parents.
How Ron Paul's "Delegate Strategy" is Working
Brian Doherty - Reason.com
As five more states take to the polls to try selecting their choice for the Republican Party nomination today, various interesting things have been happening in the world of Ron Paul's march through the caucus states, whose straw poll results often don't bind delegate allocation meaningfully.
First, a look at Iowa, where the Des Moines Register notes how successful Paulites have been within the state GOP apparatus:
Six of the new Iowa GOP state central committee members elected at district conventions Saturday have publicly expressed support for Paul, a libertarian-leaning presidential candidate: Dave Cushman, John Kabitzke, Joel Kurtinitis, Marcus Fedler, Jeff Shipley and Kris Thiessen....
America's Hidden Government The Costs of a Submerged State
By Desmond King - ForeignAffairs.com
Over the course of the past century, the American state -- the sum of all government programs and policies -- has grown dramatically larger and more complex. From a massive standing army to an extensive social safety net to significant taxation, from mortgage guarantees to student loans to environmental protections, the range and scale of government activity taken for granted by American citizens today would have been inconceivable to their great-grandparents.
Executive Orders Unleashed:
Obama "Can't Wait" to Bypass Congress
COMMENT: Apologists here for Obama's use of executive orders point out the other recent presidents who've also overreached their use of executive orders. This makes the abuses more important, not less, as this has been an on-going deviation from the Constitutional limits of the president since at least FDR in the 30s. An executive branch run wild makes the abuses of kings and dictators almost inevitable. That is why it must be reined in; that's why the framers constructed limited powers in their document. On the otherhand, there's clear evidence that all of Obama & co.'s study of the Constitution must have been focuses on tactics to skirt its limitations.
FATCA: Big Brother Goes Global
BY MARK NESTMANN - FinancialSense.com
Sometimes people ask what I fear most. My answer isn't really what they expect.
It's not riots in central cities, a collapse of food supplies or other essential infrastructure, a terrorist attack, or even the growing U.S. police state.
All of these threats are real, but all of them can be dealt with successfully through intelligent planning. For instance, by keeping a substantial store of food on hand in your home and not residing in or near a big city, you can mitigate the first two threats. And by leaving the United States and setting up residence in a country that actually respects civil liberties, you can reduce your vulnerability to the long arm of Uncle Sam.
Facebook's Seasonal Slowdown: Explanation or Excuse?
By Jeff Bercovici, Forbes.com
Should Facebook investors (and would-be investors) be nervous that the social networking behemoth just posted its first quarter-to-quarter revenue decline in at least two years, just weeks in advance of its expected $100 billion IPO?
Facebook doesn't think so, of course. Their explanation for the drop-off is that the first quarter is pretty much never as conducive to ad spending and e-commerce as the holidays, and there's something to that. EMarketer estimates that total U.S. online ad spending fell 3.2% in the quarter, to $8.9 billion.
Spies, Hackers and Energy -
Preventing a Digital Pearl Harbor
By Jen Alic - OilPrice.com
As the Obama Administration attempts to push some heavy-handed cyber security bills through the House that would further chip away at privacy, officials are painting a very bleak picture of America's vulnerability to a "Digital Pearl Harbor".
Media reports note that "foreign spies and organized criminals are inside virtually every U.S. company's network", and that "our infrastructure is being colonized".
The logic of the bills, six of them in all, is to enforce cooperation from companies and private individuals, particularly those operating power plants, chemical facilities, and communications systems. The underlying theory is that the government must step in to protect the private sector in the name of national security.
Death to Those Who Sell Homes to Jews
By Arnold Ahlert - PatriotPost.us
Jewish leaders rally to save Palestinian from his own government and its medieval property laws.
Muhammad Abu Shahala is a former Palestinian intelligence officer who, after reportedly being tortured, admitted committing a capital offense. As a result he has been sentenced to death. His "crime"? He sold his home in Hebron on the West Bank to Jews. Under Palestinian law, all that awaits Shahala's rendezvous with destiny is the approval of the sentence by Palestinian Authority (PA) president Mahmoud Abbas. Who is trying to save him? Jewish officials, who are attempting to get the international community involved.
Israeli military chief: Iran will not build nuclear bomb
By Karin Brulliard and Joby Warrick - WashingtonPost.com
JERUSALEM — Israel's military chief said in an interview published Wednesday that he believes Iran will choose not to build a nuclear bomb, an assessment that contrasted with the gloomier statements of Prime Minister Benjamin Netanyahu and pointed to differences over the Iran issue at the top levels of Israeli leadership.
The comments by Lt. Gen Benny Gantz, who said international sanctions have begun to show results, could relieve pressure on the Obama administration and undercut efforts by Israeli political leaders to urge the United States to get as tough as possible on Iran.
Gold holds steady; eyes on Fed meeting
(Reuters) - Gold was steady around $1,642 an ounce on Wednesday, underpinned by stronger equities, but investors were also looking for hints of another round of quantitative easing when the U.S. Federal Reserve ends of its two-day meeting.
Is gold still cheap?
By: Steve Saville - GoldSeek.com
We addressed the above question last year and arrived at the answer: no, gold left bargain territory long ago. We remain bullish on gold not because we think gold is still cheap, but because we expect it to get a lot more expensive.
This isn't a "greater fool" game that we are playing, in that our belief that gold will become a lot more expensive over the years ahead isn't based on the expectation that people will be silly enough to pay a much higher valuation in the future for an asset that is already over-valued today. It is, instead, a position based on the observation that the world's most important central banks and governments remain committed to a course that ends in catastrophe for their economies and currencies. To put it another way, gold may well be expensive relative to the current economic backdrop, but it is cheap relative to what the economic backdrop will be 5 years from now if the current policy course is maintained. And at this stage there are no signs that the current policy course will not be maintained.
A Return to the Gold Standard,
or Gold Behind Currencies Part 5 Present Use of Gold in International Financial Dealings
BY JULIAN PHILLIPS - FinancialSense.com
B.I.S. Gold / Swaps
In 2011, according to the B.I.S.'s annual report, Central banks have pulled 635 tonnes of gold from the Bank for International Settlements in the past year, the largest withdrawal in more than a decade. The move, disclosed in the BIS annual report, marks a sharp reversal from last year when central banks added similar amounts to deposits of gold at the so-called "Bank for Central Banks". Why? First let's look at what Swaps are.
What are Swaps and who does them?
Swaps are financial instruments that allow for the exchange of one asset for another –in this case, gold for currency. They're not gold leasing, futures or options (which the 1999 and 2004 Central Bank Gold Agreement states would not be increased; the 2009 did not contain the statement). Swaps could be undertaken by the signatories of the CBGA as these were not included in any of the three Agreements.
Gold: 2012 is the year to accumulate Gold
CommodityOnline.com
NEW YORK: Many forces influence the gold markets today, sometimes producing confusing indicators of what may lie ahead. In this exclusive interview with The Gold Report, John LaForge, commodity strategist at Ned Davis Research Inc., talks about the numerous and sometimes not-so-obvious factors that he considers in his research and how they influence the gold markets and, ultimately, mining shares.
As long as there is no significant improvement in the world monetary situation and real interest rates don't rise dramatically, he believes the gold price trend remains positive and gold stocks should shine brighter.
The Hidden Role of Gold at the IMF
[see Rickards' interview videos on yesterday's archive]
By JAMES RICKARDS - USNews.com
The International Monetary Fund completed their spring meetings last weekend amid communiqués and good feelings about what had been accomplished. There was optimism about improvement in the global economy albeit tempered by warnings that risks remained. Christine Lagarde, the organization's managing director, was upbeat about new financing pledges to help build an IMF firewall to prevent contagion from countries in financial distress.
Yet, behind this facade of goodwill were stresses between the rising economic powers, notably Brazil, China, and India, and developed economies in Europe. In the middle of these stresses is the United States, which is the only country in the world with veto power over IMF decisions. To understand what is driving the International Monetary Fund today, it is necessary to look behind the jargon of the communiqués and examine the hardball politics actually playing out. These politics involve the U.S. response to the firewall, the relative voting rights of IMF members, and the hidden role of gold.
The UN Plan For Running The World:
Global Carbon Taxes, Global Safety Nets
And A One World Green Economy
By Michael Snyder - EndOfTheAmericanDream.com
Did you know that the UN has a plan for running the world and it is right out in the open? It is called "sustainable development", but it is far more comprehensive than it sounds. The truth is that the UN plan for running the world would dramatically alter nearly all forms of human activity. A 204 page report on "sustainable development" entitled "Working Towards a Balanced and Inclusive Green Economy, A United Nations System-Wide Perspective" has been published in advance of the upcoming Rio + 20 United Nations Conference on Sustainable Development in Rio de Janeiro. You can read the full report right here. It envisions a vast system of global carbon taxes, massive global safety nets and the implementation of a one world green economy. Many of those that are pushing "sustainable development" on a global level believe that they are doing it for the good of the planet.
The Pain in Spain, Debt Spiral and Housing Market Crash
By: John Mauldin - MarketOracle.co.uk
It really does seem to be All Spain All the Time, but there is a reason. Unlike Greece, Spain makes a difference to the eurozone. It may be both too big to allow to fail and too big to save. Last week I came across a very informative 50-page PowerPoint on the situation in Spain from Carmel Asset Management. It is too big to send, but I asked Jonathan Carmel to draft a smaller document with some of the key points. I find it compelling. You can access the entire PowerPoint on my website. If you are not registered with me, you will need to enter your email address and, if you would, your zip code or country. There is a lot if information and data in the report. It will certainly make you think.
Why the United States Isn't Europe Conservatives like to fret that the United States is turning a giant European-style welfare state. But our big government and banking rules are what keep us from becoming Europe.
By Matthew O'Brien - TheAtlantic.com
The last few years have been a tale of two currency unions.
On one side of the Atlantic, you have the euro zone. It features a dysfunctional group of state economies that don't necessarily make sense together. Bailouts, recession, and general doom have been the norm lately. On the other side of the Atlantic, you have the United States. It features a dysfunctional group of state economies that don't necessarily make sense together. Bailouts, recession, and ... no, wait. Growth has been disappointing since 2009, but the American economy has grown. Europe would be thrilled with our disappointing growth.
Earth to Ben Bernanke Chairman Bernanke Should Listen to Professor Bernanke
By PAUL KRUGMAN - NYTimes.com
When the financial crisis struck in 2008, many economists took comfort in at least one aspect of the situation: the best possible person, Ben Bernanke, was in place as chairman of the Federal Reserve.
Bernanke was and is a fine economist. More than that, before joining the Fed, he wrote extensively, in academic studies of both the Great Depression and modern Japan, about the exact problems he would confront at the end of 2008. He argued forcefully for an aggressive response, castigating the Bank of Japan, the Fed's counterpart, for its passivity. Presumably, the Fed under his leadership would be different.
Bernanke's goal: Keep out of the corner
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — The Federal Open Market Committee is expected to only tweak its economic forecasts at its two-day meeting this week, keeping all its options on the table given cross currents in recent economic data, analysts said.
Federal Reserve Chairman Ben Bernanke may use his press conference on Wednesday to clarify what conditions would warrant a change in policy, said Tim Porcelli, chief U.S. economist at RBC Capital Markets.
The FOMC starts its two-day meeting on Tuesday, and on Wednesday will announce its interest-rate decision at 12:30 p.m. Eastern.
The FOMC will then release its quarterly growth, unemployment and interest-rate forecast at 2 p.m., followed by a press conference with Bernanke at 2:15 p.m.
Fed Statement to Set Market's Tone
BY CHRIS CIOVACCO - FinancialSense.com
The markets advanced early Tuesday after a report on home sales exceeded forecasts. On the earnings front, AT&T (T) and 3M (MMM) came in above consensus. With an important Fed statement and a durable goods report coming on Wednesday, we will be monitoring our market models, support, and moving averages closely.
After the recent rise in Spanish and Italian bond yields, it is possible the market is expecting too much from Wednesday's Fed statement. From a bullish perspective, any hint of additional Fed asset purchases in the central bank's statement could give a tired market a bullish injection.
America's Alternate Economic Reality For those who increasingly see government as the engine of the economy, acceptance of the unthinkable has become routine.
By J.T. YOUNG - The American Spectator.org
Despite enormous federal spending, deficits, and debt, many Americans remain relatively unconcerned. With evidence of uncontrolled debt's consequences so clear in Europe, how can so many so easily ignore it at home? The answer is that competing economic realities divide America, obscuring our fast-approaching tipping point.
Under the President's own budget and estimates, the deficit this year will be $1.327 trillion. If correct, this will be the fourth consecutive budget deficit over $1 trillion and the highest deficit since 2009. Prior to this, America had never had one deficit over $1 trillion.
BOE's Miles Says April Vote for More Stimulus Vindicated
By Scott Hamilton and Svenja O'Donnell - Bloomberg.com
Bank of England policy maker David Miles said his vote for more so-called quantitative easing this month still looks vindicated as the economy is weak and data today might even show it contracted in the first quarter.
"The weakness of demand, given the amount of spare capacity in the economy, still made a strategy of having monetary policy even more expansionary the right one," Miles said in an interview in London yesterday. "On reflection that seems to me still the right strategy."
Nightmare week for Angela Merkel as austerity bloc crumbles Europe's political centre is starting to crumble, replicating the pattern of the early 1930s as the crisis ground into its third year under a similar mix of fiscal and monetary contraction.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Elected governments have already been swept away - or replaced by EU technocrats without a vote, indeed to prevent a vote - in every eurozone state where unemployment has reached double-digits: Spain (23.6pc), Greece (21pc), Portugal (15pc), Ireland (14.7pc) and Slovakia (14pc).
The political carnage has been striking. Ireland's Fianna Foil, creator of the Irish free state, has lost every seat in Dublin. Greece's Panhellenic Socialist Movement (PASOK) - torch-bearers of Greek democracy since the Colonels - has fallen to 14pc in the polls and faces ruin next month.
Cost of Spain's Housing Bust Could Force a Bailout
By LANDON THOMAS Jr. and RAPHAEL MINDER - NYTimes.com
By any measure, the Spanish real estate boom was one of the headiest ever. Spurred by record-low interest rates, Spaniards piled into holiday villas along the Costa Brava, gaudy apartments in Madrid and millions of starter homes throughout the country.
But since the frenzy drove Spanish home prices to a peak in 2007, they have fallen by at least one-fourth, and the bottom seems nowhere in sight. AsSpain endures its second recession in three years and unemployment nears 25 percent, an increasing number of debt-heavy Spaniards can no longer meet monthly payments on the mortgages that their banks were all too eager to give.
Dutch Debt "On Edge of Downgrade",
Central Banks Add to Gold Reserves
By: Ben Traynor - MarketOracle.co.uk
SPOT MARKET gold prices climbed to $1643 an ounce Tuesday lunchtime in London – a 1.2% gain from yesterday's low, but still below Friday's close – as Eurozone concerns focused on the Netherlands after yesterday's government collapse.
Based on the PM London gold fix, gold prices remain 3% below their 200-day moving average.
Silver prices rallied back above $31 an ounce by Tuesday lunchtime – though they remained around 2% off where they began the week – while European stock markets edged higher following Monday's steep drop and commodities also made gains this morning.
The Euro meantime regained a bit of ground against the Dollar, though remained below last week's close, with the Federal Open Market Committee due to announce its latest monetary policy decisions tomorrow.
U.S. Lost AAA on Danger of Liquidity Crisis,
S&P's Kraemer Says
By Jennifer Ryan - Bloomberg.com
The U.S. lost its top credit grade in August because of the imminent danger of a "real liquidity crisis," and Standard & Poor's made no errors in its analysis, said Moritz Kraemer, managing director of sovereign ratings.
"Last summer, the U.S. government got extremely close to a real liquidity crisis because the Washington establishment could not agree on the way forward that would have been required to raise the debt ceiling," Kraemer told lawmakers on the U.K. Parliament's Treasury Committee today in London.
Housing downturn spurs a boom
in foreclosure-to-rental conversions
By Brady Dennis - WashingtonPost.com
Gene Richards is a lifelong Vermonter, but on a recent weekday afternoon he found himself back on Florida's west coast, scouting foreclosures to add to the collection of rental properties he has amassed in the wake of the housing crisis.
"I just started buying them and I haven't stopped. I have 15 right now, and I'd buy another 15," said Richards, 51, who runs a mortgage company and also owns rental properties back home in Burlington, Vt. "This to me is a no-brainer of an investment."
With home prices at historic lows and rental rates on the rise, Richards and a growing number of investors with cash to spare are seeking lucrative returns by gobbling up foreclosures in distressed markets across the country and turning them into rentals.
Case-Shiller home price report
paints pessimistic picture for Charlotte market
Charlotte Business Journal by Susan Stabley, Staff Writer
Standard & Poor's released its monthly Case-Shiller Home Price Index today, which includes previously missing sales data from Mecklenburg County.
The monthly index tracks 20 metro areas, but the Case-Shiller report released last month only gave home price statistics for 19 areas for the year ending in January.
But now that information is in, and the results reflect a declining residential real estate market for the Charlotte metro area.
Housing Market Rebound
Not Likely To Happen In Our Lifetimes: Shiller
HuffingtonPost.com
NEW YORK, April 24 (Reuters) - The U.S. housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.
Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.
"I worry that we might not see a really major turnaround in our lifetimes," Shiller said.
Millions More U.S. Homeowners to Rent, Pimco's Simon Says
By Jody Shenn and Tom Keene - Bloomberg.com
The U.S. homeownership rate may fall two percentage points to 64 percent, below historic norms, amid about six million additional foreclosures and tight lending standards, according to Pacific Investment Management Co.'s Scott Simon.
"You may be turning another 4 million homeowners into renters," Simon, the mortgage-bond head at Newport Beach, California-based Pimco, said in an interview on Bloomberg Television's "Surveillance Midday" with Tom Keene.
Real House Prices and Price-to-Rent Ratio at late '90s Levels
by CalculatedRisk
Another Update: Case-Shiller, CoreLogic and others report nominal house prices. It is also useful to look at house prices in real terms (adjusted for inflation) and as a price-to-rent ratio.
Below are three graphs showing nominal prices (as reported), real prices and a price-to-rent ratio. Real prices, and the price-to-rent ratio, are back to late 1998 and early 2000 levels depending on the index.
Three hidden costs of the foreclosure crisis The country's foreclosure problem is only halfway over: CRL
By Amy Hoak, MarketWatch
CHICAGO (MarketWatch) — Recent statistics show foreclosure activity is declining, but the nation's foreclosure problem is far from over. What's more, the drawn-out foreclosure crisis has lasting consequences for those who have lost their homes as well as the communities surrounding them.
Five million foreclosures have occurred since 2007, according to the Center for Responsible Lending, a nonprofit that works to protect homeownership by fighting predatory lending practices. And the crisis is only halfway over: There are 3 million to 5 million more foreclosures expected in the next couple of years, according to the center's best estimate.
HARP 3.0? California to Change Foreclosure Laws?
MGIC and SunTrust Results
BY ROB CHRISMAN - MortgageDailyNews.com
From the New York Times Science sections comes, "While baboons can't read, they can tell the difference between real English words and nonsensical ones, a new study reports. Baboons can master a basic element of reading, says a French team. "They are using information about letters and the relation between letters to perform the task without any kind of linguistic training," said one psychologist. He and his colleagues worked with six baboons that were given free access to touch-screen computers, which displayed four-letter sequences. If a baboon tapped the screen when the sequence was a real word, it received a treat. "The animal realizes what to do in order to get a reward," Dr. Grainger said. "And they remember the words; they didn't forget them." A similar study is being done on guys who send out daily mortgage commentaries...
Made in USA... once again? A New Trend "Sneaking up on People"
By Chris Mayer - DailyReckoning.com
04/23/12 China has lost its edge.
There was lots of skepticism about a piece in my March letter called "The Great Comeback No One Will Believe" about the revival of U.S. manufacturing as China loses its cost advantage. But I continue to find evidence that the piece was spot on.
I had a good talk with Scott Huff, a principal at Innovate International, which does product development work and contract manufacturing for several industries. Scott's story is worth passing on because the arc of his career in the last 10 years tells the story better than any set of statistics.
Kansas mass layoffs rise for first time this year
Kansas City Business Journal by Brenna Hawley, Web Reporter
Kansas mass layoffs increased in March for the first time this year, with 11 such events compared with five a year earlier, the U.S. Department of Labor reported Tuesday.
Mass layoff events are characterized as involving at least 50 workers from a single employer.
The number of people affected more than doubled. In March, 1,588 Kansans made initial claims for unemployment insurance, up from 727 a year prior, the report said.
1,165 Colorado workers cut in March 'mass layoffs'
Denver Business Journal by Mark Harden, New Media Editor
Colorado saw nine "mass layoffs" of 50 or more workers at a time in March, with a total of 1,165 workers let go, the U.S. Labor Department reported Tuesday.
That compares to six mass layoffs of 478 workers in February, and five mass layoffs of 557 workers in March 2011, the Labor Department's Bureau of Labor Statistics reported.
The layoff totals are based on initial filings of claims for unemployment benefits.
Return of Debtors' Prisons:
Breast Cancer Survivor Jailed for $280
Submitted by Michael Allen - OpposingViews.com
In Herrin, Illinois, Lisa Lindsay recently went to jail because she got a $280 medical bill by mistake and was told she didn't have to pay it.
The Associated Press reports that the bill was turned over to a collection agency, police later showed up at her home and took her to jail. Illinois is now considering a bill banning this modern day practice of debtors' prisons.
Even though the U.S. banned debtors' prisons in the 1830s, more than a third of U.S. states allow the police to arrest people in who don't pay debts, from health care services to credit card and auto loans; all at the behest of corporate America.
Under some state laws, debtors are arrested, not for the actual debt, but failing to respond to court hearings and pay legal bills that they may not even owe.
Families Study Plan B With Possible Stafford-Loan Rate Spike
By ANNAMARIA ANDRIOTIS - WSJ.com
The rates on popular federal student loans could shoot up before the next academic season, depending on the outcome of a political battle brewing in Washington.
A provision in a law that has kept rates down on subsidized Stafford loans is set to expire June 30. After that, rates will jump to 6.8%—double the current rate. President Barack Obama has asked Congress to extend for another year the lower rates, which are part of the College Cost Reduction and Access Act of 2007. Some Republicans, however, have said they are concerned about the cost of keeping the current rates, which the nonpartisan Congressional Budget Office has said will cost $6 billion for one year.
Hospital of Cards
Mises Daily: by Andrew Foy, MD
The US healthcare system is a huge bubble fueled by misguided policies that are sustained by the government's ability to borrow money at artificially low interest rates. When either the policies change or the flow of credit to the US government stops, the bubble will burst.
For some perspective on the magnitude of the healthcare bubble consider that from 1990 to 2007 the cost of all items, as measured by the Bureau of Labor Statistics (BLS), rose by 159 percent while housing rose 163 percent and medical care rose a staggering 216 percent. A recent study by the Kaiser Family Foundation found that between 1999 and 2011, health-insurance premiums increased 168 percent while workers' total earnings increased only 50 percent. Over that same time period, government spending on healthcare increased 240 percent while GDP increased 62 percent. The BLS reported that over the last 50 years, the percent of workers employed in private-sector healthcare has gone from 3 percent to over 11 percent and employment has continued to grow throughout the current recession. BLS further projects that "Healthcare will generate 3.2 million new wage and salary jobs between 2008 and 2018, more than any other industry," and that "The number of wage and salary jobs in pharmaceutical and medicine manufacturing is expected to increase by 6 percent over the 2008–18 period, compared with 11 percent projected for all industries combined."
Argentina: A Lesson for America? Argentina nationalizes YPF
as cracks in the global economy grow.
Is there a warning for the U.S.?
BY ROBERT MORLEY - theTrumpet.com
Argentina holds the dubious distinction of being the only First World nation to become Third World. If it is any consolation, it won't hold that title for long.
America holds a couple of dubious distinctions too. It is the richest nation in the world. Yet, it is also its most indebted. One in seven Americans is being actively pursued by debt collectors. America also has the world's largest military. But to pay for it, it has to beg money from one of its biggest rivals, China.
Americans are either ignorant or think they are immune to the lessons of history.
Argentina once thought it was immune to history too.
Shift on Executive Power Lets Obama Bypass Rivals
By CHARLIE SAVAGE - NYTimes.com
WASHINGTON — One Saturday last fall, President Obamainterrupted a White House strategy meeting to raise an issue not on the agenda. He declared, aides recalled, that the administration needed to more aggressively use executive power to govern in the face of Congressional obstructionism.
"We had been attempting to highlight the inability of Congress to do anything," recalled William M. Daley, who was the White House chief of staff at the time. "The president expressed frustration, saying we have got to scour everything and push the envelope in finding things we can do on our own."
Obama's Latest Plan to Snooker Seniors GAO outs $8 billion Medicare Advantage
"demonstration project" as an election year scam.
By DAVID CATRON - The American Spectator.org
For years, the President and his congressional accomplices have been telling us that the Medicare Advantage (MA) program is too costly. As Obama claimed during a 2009 interview with ABC's George Stephanopoulos: "We are spending a lot of money subsidizing the insurance companies around something called Medicare Advantage.… And if we eliminate that and other programs, we can potentially save $200 billion…" This canard was the pretext for the massive slashes in MA funding he authorized when he signed Obamacare into law. As the election year approached, however, the President's reelection team evidently noticed a potential problem -- the seniors most likely to be affected by these MA cuts were due to find out about them just a few weeks before the November election.
Ex-TSA Head: Stop Searching for Knives
By JIM AVILA and BEN FORER - ABCNews.com
The Transportation Security Administration has become a necessary inconvenience for most travelers as the list of prohibited items has increased and the lines for screenings continue to serpentine through many airport departure halls. But former TSA administrator Kip Hawley says the system is broken and it doesn't have to be this way.
Hawley, who ran the TSA from 2005 to 2009, insists that to do a better job of preventing terrorist attacks more TSA officers should roam the airport, asking questions and watching shady characters, instead of screening passengers at checkpoints. He says the frustrating security checkpoints that alienate passengers and do little to stop Al Qaeda need to be streamlined.
For first time since Depression,
more Mexicans leave U.S. than enter
By Tara Bahrampour, WashingtonPost.com
A four-decade tidal wave of Mexican immigration to the United States has receded, causing a historic shift in migration patterns as more Mexicans appear to be leaving the United States for Mexico than the other way around, according to a report from the Pew Hispanic Center.
It looks to be the first reversal in the trend since the Depression, and experts say that a declining Mexican birthrate and other factors may make it permanent.
"I think the massive boom in Mexican immigration is over and I don't think it will ever return to the numbers we saw in the 1990s and 2000s," said Douglas Massey, a professor of sociology and public affairs at Princeton University and co-director of the Mexican Migration Project, which has been gathering data on the subject for 30 years.
Hillary: Playing Roulette With the Russians
By Ken Blackwell - PatriotPost.us
Editor's Note: This column was co-authored by Bob Morrison
Secretary Hillary Clinton was at the Naval Academy recently. She went there to deliver a prestigious Forrestal Lecture. And she was well received by the 4,000 Midshipmen and hundreds of students attending the Naval Academy Foreign Affairs Conference.
One Midshipman asked Sec. Clinton about the killing of Osama bin Laden. Hillary responded with poised professionalism. She crisply outlined all the steps that were taken and the vast, complex operations that had to come together in time and space to bring success. She tells the story well. And, interestingly, she gives no hint of envy that it was Barack Obama who got to make that critical call, not Hillary herself.
Hitler Back in Print Bavaria Plans New Edition of 'Mein Kampf'
Spiegel.de
The southern German state of Bavaria, which holds the copyright to Adolf Hitler's polemic "Mein Kampf," hasn't allowed the book to be published in Germany since the end of World War II. But the copyright expires in 2015, and there are concerns that neo-Nazis might immediately begin disseminating the work once Bavaria can no longer prevent its publication.
But now Bavaria has announced it will take its own steps to limit the damage the book might cause. Bavarian science minister Wolfgang Heubisch announced on Monday that the state would publish an annotated version of the book. By including commentaries on the text debunking Hitler's arguments, the state government hopes that readers will not be seduced by the Nazi leader's propaganda.
Reinventing the Sino-American Relationship
By Michael Spence - Project-Syndicate.org
MILAN – China and the United States are in the grip of major structural changes that both dread will end the Halcyon era when China produced low-cost goods and the US bought them. In particular, many fear that if these changes lead to direct competition between the two countries, only one side can win.
That fear is understandable, but the premise is mistaken. Both sides can and should gain from forging a new relationship that reflects evolving structural realities: China's growth and size relative to the US; rapid technological change, which automates processes and displaces jobs; and the evolution of global supply chains, driven by developing countries' rising incomes. But first they must acknowledge that the old pattern of mutually beneficial interdependence really has run its course, and that a new model is needed.
US wades into China-Philippine standoff
By Al Labita - ATimes.com
MANILA - China has beefed up its naval might around the Scarborough Shoal in the South China Sea, threatening a clash as the United States and Philippines hold joint military exercises in the vicinity of the potentially energy rich disputed maritime territory.
In a show of force, a state-of-the-art Chinese vessel, the Yuzheng 310, is now on patrol near the Scarborough Shoal, raising the strategic ante as its maritime standoff with the Philippines heads into a second week. Certain news reports have suggested as many as five other Chinese patrol vessels are now in the area.
North Korea's nuclear test ready "soon"
By Benjamin Kang Lim
BEIJING - (Reuters) - North Korea has almost completed preparations for a third nuclear test, a senior source with close ties to Pyongyang and Beijing said, an act that would draw further international condemnation following a failed rocket launch.
The isolated and impoverished state sacrificed the chance of closer ties with the United States when it launched the long-range rocket on April 13 and was censured by the U.N. Security Council, which includes the North's sole major ally, China.
U.S. urges North Korea not to engage in provocation
(Reuters) - U.S. Defense Secretary Leon Panetta urged North Korea on Tuesday not to engage in any provocation that could increase instability, as speculation mounts about a possible third nuclear test.
"I do not have any specific information as to whether or not they will proceed or not with additional provocations at this time," Panetta said on a trip to Brasilia, when asked about the possibility of a nuclear test.
"But I again would strongly urge them not to engage in any kind of provocation - be it nuclear testing or any other act - that would provide greater instability in a dangerous part of the world."
Israel ready to strike Iran, Lebanon, Gaza,
says Israeli Armed Forces Chief of Staff
Lt Gen Binyamin Gantz spoke to Israeli daily Yedioth Ahronoth. This will be a crucial year. As Iran's nuclear threat must be stopped, Israel is preparing for a possible conflict.
AsiaNews.it
Tel Aviv (AsiaNews/Agencies) - Israel is ready, if necessary, to strike Iran, Lebanon and Gaza, Israeli Armed Forces Chief of Staff Lt Gen Benny Gantz said in an interview with top Israeli daily Yedioth Ahronoth. For him, the year 2012 will be critical to halt what Israel and much of the international community believe is an Iranian nuclear arms programme. "We think that a nuclear Iran is a very bad thing, which the world needs to stop and which Israel needs to stop-and we are planning accordingly," Gantz said on the eve of Israel's 64th anniversary as a state.
- - - - - cyber-security news - - - - -
Russian cybercriminals earned $4.5 billion in 2011 Russian mafia took control and professionalized online crime in 2011, researchers say
By Loek Essers - Computerworld.com
IDG News Service - Russian-speaking hackers earned an estimated $4.5 billion globally using various online criminal tactics and are thus responsible for 36% of the estimated total of $12.5 billion earned globally by cybercriminals in 2011, Russian security analyst firm Group-IB said in a report published on Tuesday.
In the report, Group-IB differentiates between cybercriminals living in Russia and Russian-speaking cybercriminals, who include citizens of the countries of the former Soviet Union and other countries. In the 28-page report the researchers estimate that the total share of the Russian cybercrime market alone doubled to $2.3 billion, while the whole Russian-speaking segment of the global cybercrime market also almost doubled, to $4.5 billion. The researchers noted that the Russian-speaking segment of the global cybercrime market traditionally encompasses twice the amount of the Russian segment.
Interview with SANS' Ed Skoudis:
America losing the cybersecurity war to hackers
By Darlene Storm - Conputerworld
As much as we don't like to hear about it, America is not winning the cyberwar. Malicious hackers are winning and China has penetrated "every major U.S. company." But there are elite cyber warriors who protect the world from cybercrime and the USA desperately needs more Cyber Guardians. In advance of the second annual Cyber Guardian information security training event in Baltimore next week, April 30 - May 7, 2012, I had an opportunity to interview Ed Skoudis about the SANS Cyber Guardian program.
Skoudis is a security expert on hacker attacks and defenses, a world-renowned author and senior security consultant with InGuardians. He's demonstrated hacker techniques against financial institutions for the U.S. Senate and frequently speaks at security conferences. He is also a SANS Faculty Fellow who teaches thousands of information security professionals how to improve their skills and better defend their networks.
Inventor of the WWW Trash-Talks CISPA
by Michael del Castillo - Portfolio.com
The inventor of the World Wide Web wants the Internet to be free and open, and he doesn't think the Cyber Intelligence Sharing and Protection Act is a good idea.
The act, known as H.R. 352, is widely presented by advocates as essential to national security by protecting part of the United States' infrastructure, though detractors are quick to point out it's implications for intellectual property and, therefore, free speech.
In an interview with the Guardian, Tim Berners-Lee, who in 1989 invented the World Wide Web, has come out in clear opposition of the act.
[It] is threatening the rights of people in America, and effectively rights everywhere, because what happens in America tends to affect people all over the world. Even though the SOPA and PIPA acts were stopped by huge public outcry, it's staggering how quickly the US government has come back with a new, different, threat to the rights of its citizens.
Macs more likely to carry Windows malware than Mac malware, Sophos says
75% of Mac OS X infections involve a Flashback variant, Sophos finds
By Lucian Constantin - Computerworld.com
IDG News Service - One in five Mac computers is likely to carry Windows malware, but only one in 36 is likely to be infected with malware specifically designed for the Mac OS X, according to study performed by antivirus firm Sophos.
Sophos collected malware detection statistics from 100,000 Mac computers that run its free antivirus product and found that 20% of them contained one or more types of Windows malware.
When stored on a Mac, Windows malware is inactive and can't do any harm, unless that computer has Windows installed as a secondary OS.
* * * * * IMPORTANT * * * * *
DNS Changer Malware is serious -
find out if you computer is infected.
Non-invasive link for USA check:http://www.dns-ok.us
if background is 'green' you're OK; if RED, not OK - seek antivirus software alternatives to restore system to normal.
Use this link to check if you live outside USA:
DNS Changer - Information & links for other countries
The FBI is seeking information from individuals, corporate entities and Internet Services Providers who believe that they have been victimized by malicious software ("malware") related to the defendants. This malware modifies a computer's Domain Name Service (DNS) settings, and thereby directs the computers to receive potentially improper results from rogue DNS servers hosted by the defendants.
Gold Outperforms As Stock Suffer
From Wal-Mart's 'Sinko-De-Abril'
Submitted by Tyler Durden - ZeroHedge.com
An ugly European market initially dragged stocks notably weaker overnight, with plenty of headline-makers from Apple's moves to WMT's 'Sinko-de-Abril' accounting for 20% of the Dow's loss, and Europe's macro data but after the first 30 minutes or so, S&P futures bounced off 4/10 day-session lows and leaked higher all day from there to end around last Monday's closing print. Volumes lagged as we rallied - as did average trade size - butin the last few minutes heavy volume and large average trade size stepped back in more biased to the downside. Stocks and volatility continue to follow very similar paths during this reflation phase as they did in 2010 and 2011 and while much was made of VIX's more-positive-than-expected performance today, we remind readers that we are at 8-month wides relative to realized vol - suggesting markets are anticipating a lot more anxiety ahead. FX markets leaked higher in the USD until shortly after the US day-session open and then drifted USD weaker from there as Treasury weakness coincided with EUR buying - smelling a lot like more repatriation flows.
Awash in money and piles of debt
By Stella Dawson
(Reuters) - The amount of money thrown at rescuing the world economy since the Great Recession began is truly staggering, probably more than $14 trillion, and the financial spigots are still open.
Industrialized and emerging nations pledged another $430 billion to boost the International Monetary Fund's lending power this weekend, doubling the size of its crisis-fighting war chest in case Europe's problems worsen and engulf more countries.
Three weeks earlier, European Union leaders set aside $1 trillion for Europe's bailout fund creating a firewall to prevent the euro zone's sovereign debt woes from spreading.
Duration Risk: How the Fed
is Creating the Next Financial Crisis
InstitutionalRiskAnalytics.com
Over the weekend, we got to go through a lot of accumulated reading, the majority of which only confirms our view that US markets and investors are living in the eye of the proverbial hurricane. White the equity and bond markets in the US still have the outward appearance of normalcy, in the EU and around the world financial markets are in disarray. The only question seems to be when Americans will get the wake-up call. As the character Leon said memorably to Harrison Ford in Bladerunner: "Wake up. Time to die."
One of the stranger sensations we get on a weekly basis is when we are asked how long US interest rates will remain low. The question is interesting because we all hope that the Fed keeps things as they are. An increase in interest rates pretty much implies the apocalypse, if you know what we mean, so asking about Ben Bernanke easing up on the gas pedal could be seen as a sign of economic naïveté. But leaving things as they are has a cost too.
Politics, Markets, and People: On a Collision Course
BY JOE DUARTE - FinancialSense.com
The world is clearly on a collision path, ideologically, economically, and philosophically. And the markets are starting to reflect this.
The story of the weekend is Wal-Mart's bribery scandal. But Europe is about to head on another down leg as Spain's economy is shrinking and the European Central Bank is not interested in another round of money printing or bond buying. As we reported last week, European banks are already running out of the money that was put in their pockets by the LTRO bond buying arrangement with the ECB. So Monday is a major potential disaster about to happen.
Aiming for Clarity, Fed Still Falls Short in Some Eyes
By BINYAMIN APPELBAUM - NYTimes.com
WASHINGTON — The Federal Reserve chairman, Ben S. Bernanke, has tried to speak more clearly and more frequently than his predecessors. He has lectured college students, met with members of the military and, since last April, held quarterly news conferences.
But as Mr. Bernanke prepares to meet the press for the fifth time Wednesday afternoon, after a scheduled meeting of the Fed's policy-making committee on Tuesday and Wednesday, there are reasons to doubt that the efforts are increasing public understanding of monetary policy.
Welch, Geitner and Bernanke push balanced budget
March 21, 2012 -- At an Oversight and Government Reform hearing, Rep. Peter Welch (D-Vt.) talked with Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner about ways to create a balanced budget for a secure economic future.
"The big banks are buying up what they call fixed income instruments (bonds and other debt backed paper) and at the same time offering CDS insurance on the same. Just like they bought and sold protection on mortgages..."
This is a fairly good description of why the policies of Bush and Obama have failed to effect an economic recovery.
The policy of 'saving the banks' first and foremost, and of stuffing them with cheap money in the hopes that they will stimulate the real economy with loans, is a cruel hoax.
Cheap money is hot money and it seeks high beta returns. It does not seek investment with returns over long periods of time. And in an environment of lax regulation and little deterrence for abusive financial practices, one sets up a scenario ripe for fraud and another, more chilling, financial collapse.
Superheroes of Central Banking
By Adrian Ash - GoldSeek.com
"Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the US economy," confessed US Fed chairman Ben Bernanke last October. "There's a limit to what monetary policy can hope to achieve," agreed the Bank of England's Mervyn King the following month. "Monetary policy cannot do everything," sighed the ECB's Mario Draghi, speaking to the Financial Times in December.
Okay, so these guys are a long way from that "group of remarkable people" brought together by Samuel L.Jackson's growl "to fight the battles we never could" in the new Marvel Avengers movie. But couldn't they at least wear their underpants outside their trousers?
Global Markets Veer Lower on Turbulence in Europe
By VICTORIA SHANNON - NYTimes.com
An abrupt change in the political and economic winds in Europe roiled stock markets there and helped depress shares on Wall Street on Monday.
Major indexes in Europe were down about 3 percent for the day on the collision of negative indicators, while American markets were more than 1 percent lower in afternoon trading.
On the political side, the leftist presidential candidate in France scored a narrow victory over the incumbent in the first round of voting on Sunday, and the government in the Netherlands resigned on Monday after failing to agree on budget cuts.
Ministers ponder creation of EU super-president
BY ANDREW RETTMAN - EUObserver.com
BRUSSELS - Ideas kicking around in a reflection group of select EU foreign ministers include merging the roles of the EU Council and European Commission presidents.
A senior EU source told this website following a meeting of the club in the Val Duchesse stately home in Brussels on Thursday (19 April) that the new supremo would have more power than either Herman Van Rompuy or Jose Manuel Barroso do today but also more "democratic legitimacy" because he or she would be elected by MEPs.
In other reforms, the new figure would "streamline" the European Commission into a two-tier structure.
Ten EU Nations and a New 'Super-President' In a move that will strike many followers of this website as dramatic, 10 European Union nations are considering creating a powerful new office to lead that European combine.
By Ron fraser - TheTrumpet.com
en European nations propose a new EU super-president. These two entities—10 nations and a singular all-powerful leader—seem to match perfectly with Bible prophecy for these times.
Yet do they really?
Let's take a closer look.
Last week a meeting attended by representatives of 10 European nations convened in a palatial mansion in Brussels to consider creating a powerful new presidential post to lead the greatest trading bloc in the world, the European Union.
Europe pressed for action to end debt crisis
By Gernot Heller and Glenn Somerville
(Reuters) - Global finance chiefs pressed Europe in weekend talks to quickly put in place the economic reforms needed to finally extinguish its debt crisis now that newly increased financial buffers have bought some precious time.
A day after advanced and emerging countries agreed to double the firepower of the International Monetary Fund to help contain the crisis, the IMF's governing panel said on Saturday that the 17-nation euro area must cut government debt burdens further, push bold economic reforms and stabilize financial systems.
Debt problems will resurface and growth will stumble unless these steps are taken, the head of the IMF's governing panel, Singapore's finance minister, Tharman Shanmugaratnam, warned.
Bob Chapman Thinks Things Are So Bad In Europe
They Have To Keep Gold Down
Bob Chapman joined FSN again for our biweekly check-in. He believes things are going so badly in Europe, and they are getting worse by the moment. This means the elites must do everything in their power to keep the price of gold and silver in the cellar, no matter what it takes. But, it can only go on for so long until the market rights itself, and the manipulators get swept away. The good news is we're getting closer to that point, it's just a matter of time! While it's certainly a good idea to have some cold hard cash on hand, Bob believes it will only take a matter of days for people to adjust to the new monetary paradigm, when gold and silver become real money again.
France attitudes shifting far right...
underestimated support for the vivacious big blond gal
shocked the socialists, who won. Marine Le Pen scores stunning result
in French presidential election With between 18% and 20% of the vote, the far-right candidate has beaten the previous record for Front National
By Kim Willsher in Paris - Guardian.co.uk
In the run up to Sunday's first round presidential vote, it was hard to find many people in France publicly admitting they intended to vote forMarine Le Pen. Nevertheless between 18% and 20% appear to have done so – a stunning result for the far right.
It was a record for France's Front National, beating the previous best in 2002 when Le Pen's father, Jean-Marie, won his way into the second-round run-off with 17% of votes.
EU politicians express concern over rise of far-right
BY HONOR MAHONY - EUObserver.com
BRUSSELS - EU leaders share responsibility for the rise in popularity of anti-European parties, the European Commission said Monday (23 April) but rejected the notion that austerity measures are contributing to the trend.
Speaking a day after Marine Le Pen's National Front party clocked up a record 17.9 percent of the vote in first round of French presidential elections in a campaign that focused on immigration, Brussels-bashing and single-currency-bashing, the commission said "more Europe" is needed.
"Faced with this crisis we need more Europe. We need member states to work together for the citizens. National solutions in a global village is not the way forward," said commission spokesperson Olivier Bailly.
Bundesbank's Weidmann Says
What No Politician Wants to Hear
By Jeff Black and Tony Czuczka - Bloomberg.com
Jens Weidmann is no longer his master's voice.
Almost a year into his new job as the head of Germany's Bundesbank, Weidmann, 44, has matured from Chancellor Angela Merkel's discreet right-hand man at global economic meetings into one of the few European policy makers warning that governments are failing to do what's needed to rescue the euro.
Weidmann's public criticism of measures such as the "fiscal compact" -- hailed by its architects as the first step to economic union -- has pitted him against Merkel and European Central Bank President Mario Draghi as they struggle to hold the 17-nation euro region together. With Europe in recession and rising Spanish bond yields threatening to reignite the debt crisis after a three-month lull, the Bundesbank's youngest-ever president says greater fiscal and monetary rectitude is the only way to win back investors' trust.
The Globalization of Hollow Politics
By Chris Hedges - Truthdig.com
I went to Lille in northern France a few days before the first round of the French presidential election to attend a rally held by the socialist candidate François Holland. It was a depressing experience. Thunderous music pulsated through the ugly and poorly heated Zenith convention hall a few blocks from the city center. The rhetoric was as empty and cliché-driven as an American campaign event. Words like "destiny," "progress" and "change" were thrown about by Holland, who looks like an accountant and made oratorical flourishes and frenetic arm gestures that seemed calculated to evoke the last socialist French president, François Mitterrand. There was the singing of "La Marseillaise" when it was over. There was a lot of red, white and blue, the colors of the French flag. There was the final shout of "Vive la France!" I could, with a few alterations, have been at a football rally in Amarillo, Texas. I had hoped for a little more gravitas. But as the French cultural critic Guy Debord astutely grasped, politics, even allegedly radical politics, has become a hollow spectacle. Quel dommage.
And now, for a little world history, which could be about ready to repeat itself...[not intended to promote any religious group's views or booklets - just look at the history] Europe Has Found Its Deadly "Christian Roots"
From the June/July 2008 Trumpet Print Edition Pope John Paul ii famously encouraged Europeans to "find your roots!" They have accepted the challenge.
BY GERALD FLURRY
The Habsburgs were the sword of the Holy Roman Empire throughout the Middle Ages. They did their killing while supporting artists like Bach, Mozart and Schubert. They were very sophisticated as they slaughtered people.
Adolf Hitler used to love to attend the opera. He idolized the composer Richard Wagner. He even said that one couldn't understand the Third Reich without understanding Wagner. That German composer was a sex pervert and an anti-Semite, yet Hitler was intoxicated by him.
In 1983, Pope John Paul ii was in Vienna—300 years after that city was attacked by the "barbarian Turks" and the Polish king rallied the European kings and drove them out. John Paul said at that time that Europe needed to return to its "Christian roots." The present pope delivers the same message. But does this world know what those Christian roots really are?
....The seventh Holy Roman Empire has almost been completely resurrected in Europe today. Pope Benedict xvi is the spiritual head of that empire. Many leaders in Europe are working feverishly to complete the Holy Roman Empire. Some say that to complete the process they only need a newCharlemagne—a strong leader after the image of the man who was crowned emperor of the Holy Roman Empire in a.d. 800. Then they will have found their Christian roots.
Here Is What The "Other" Financial Health Metrics Are Showing
Submitted by Tyler Durden - ZeroHedge.com
For all those starry-eyed readers of Floyd Norris' New York Times real-estate column this morning who have been out viewing new homes this afternoon and already scratching together the down-payment with the family's EBT cards, we have a little contextual reality checking. Norris points to the factual reality that a broad ratio of all financial obligations - both homeowners and renters - relative to disposable income stands at an impressive-sounding lowest level since 1984, and uses this wondrous statistic, in its sublime uniqueness, as an indication to suggest the consumer may be coming back as the household debt burden has been so reduced from a record 14% of disposable income to a 'mere' 10.9% now indicating just what good little deleveraging beings we Americans have been.
A Short History of Modern Taxation in 4 Acts The last 30 years are often taken as one great experiment in tax cuts and bulging income inequality. In fact, the real story is much more spiky.
By Derek Thompson - TheAtlantic.com
The common story about modern taxes and the rich begins in 1981, when President Ronald Reagan took a sledgehammer to the tax code, and ends in 2012, with Republicans insisting that any tax increase on any sliver of the population amounts to an unforgivable assault on job creators. But, despite these notable bookends, the last 30 years aren't devoid of tax hikes. Actually, they're full of 'em.
President Reagan signed nine different tax bills in the 1980s. Seven of them raised tax revenue, according to the Office of Tax Analysis. Between 1986 and 1993, effective tax rates for the richest one percent didn't go down. They went up under bills passed under Reagan, Bush, and Clinton. That's two Republicans and a Democrat.
More companies planning to hire: NABE survey
(Reuters) - Companies are modestly stepping up hiring plans and increasingly report that wages are rising, according to a survey on Monday that suggested the economic recovery is gaining some traction.
The National Association of Business Economics' industry survey found that 39 percent of respondents expect hiring will pick up in their companies and industries during the next six months, up from 27 percent in January.
Some 48 percent of respondents expect hiring will hold steady. While that is down from 64 percent in January, it still underscores the slow pace of recovery in the labor market following the 2007-2009 recession.
Welch fights to avert doubling of student loan interest rates
April 20, 2012 -- On MSNBC's Dylan Ratigan Show, Rep. Peter Welch (D-Vt.) urged his colleagues in Congress to find a way to avert the scheduled doubling of student loan interest rates set for July 1st.
Postal officials say they must close about 3,700 underused post offices (there are 32,000 nationally) while offering alternative services through local businesses. They also want to consolidate hundreds of regional processing centers and eliminate Saturday mail deliveries.
An aide to Sen. Bernie Sanders of Vermont was warning me about this last week. There are organic reasons for all of this: The U.S. Postal Service is staring down the same barrel trained at our magazine and newspaper businesses, i.e. its revenue model is being wiped out by the internet.
But politics also plays a huge part in this. In 2006, in what looks like an attempt to bust the Postal Workers' Union, George Bush signed into law the Postal Accountability and Enhancement Act of 2006. This law required the Postal Service to pre-fund 100 percent of its entire future obligations for 75 years of health benefits to its employees – and not only do it, but do it within ten years. No other organization, public or private, has to pre-fund 100 percent of its future health benefits.
Rain, Snow, Sleet and Congress
Editorial - NYTimes.com
How vital is the United States Postal Service? The Senate is attempting to answer that this week as it debates the service's obvious need to drastically reform its business model in the age of electronic communication. Postal officials say they must close about 3,700 underused post offices (there are 32,000 nationally) while offering alternative services through local businesses. They also want to consolidate hundreds of regional processing centers and eliminate Saturday mail deliveries.
Lawmakers in both houses, fearful of constituents' wrath, would prefer to procrastinate as usual. But the quasi-independent service — which receives no revenue from the federal government but is subject to tight oversight from Congress — has set a May 15 deadline to begin making cutbacks if it is to avoid bankruptcy.
Senate to vote on array of Postal Service overhaul proposals
By Ed O'Keefe - WashingtonPost.com
The U.S. Postal Service would like Congress to allow changes to the mail delivery schedule and other reforms to better control costs, but a set of proposals expected to come to a vote Tuesday could place even more restrictions on when, where and how Americans receive their mail.
The Senate plans to vote on dozens of amendments designed to overhaul the Postal Service, by providing nearly $11 billion to fund the buyouts of hundreds of thousands of employees and, eventually, ending six-day-a-week mail delivery.
Union Suing Indiana:
Claims Right to Work Laws Makes Slaves of Union Workers
by da Tagliare - GodFatherPolitics.com
Should not every person in the United States have the right to work without being forced to join a union and pay union dues?
Evidently not!
The International Union of Operating Engineers first filed a lawsuit against Indiana Governor Mitch Daniels, Indiana Attorney General Greg Zoeller and Indiana Labor Commissioner Lori A Torres to challenge the state's right-to-work law. In the lawsuit filed in February, the union claimed that the state's right-to-work law is unconstitutional based upon the Fourteenth Amendment which guarantees equal protection under the law.
...."Compulsory membership and coerced dues and fees are the hallmarks of the union movement, yet they claim that giving workers more choice is an act of enslavement."
Senate debates curb on NLRB GOP aims to kill union-vote change
By Tim Devaney-The Washington Times
The National Labor Relations Board as a political hot potato shows no signs of cooling off anytime soon.
Senate Republicans on Monday introduced a motion of disapproval that would overturn the labor agency's recent move to allow what critics call "ambush elections" that would make it easier to install unions at a workplace. The vote will be held Tuesday afternoon.
"This vote's an opportunity to tell the NLRB to reverse course," said Sen. Michael B. Enzi, Wyoming Republican, who introduced the measure. "This resolution will not disadvantage unions or roll back any rights. What it will do is prevent the small businesses across America from being ambushed and employees from being misled."
American argues against union contracts Bankrupt airline says it is saddled with costly labor
By David Koenig - AP - WashingtonTimes.com
NEW YORK — American Airlines argued before a federal bankruptcy judge Monday that its union contracts need to be changed to make the company financially stable.
The airline lost more than $10 billion in the decade leading up to its declaration of bankruptcy in November. During that same period, most of its major rivals used the bankruptcy process to cut wages and benefits, which American says has left it saddled with higher labor costs.
American wants to eliminate 13,000 union jobs - about 1 in every 4 union workers - freeze or terminate pension plans, curb health benefits, reduce time off, and impose many other cuts.
Social Security Fund to Run Out in 2035, Trustees Say
By Brian Faler - Bloomberg.com
The Social Security program will exhaust its trust fund in 2035 and have to start reducing benefits to senior citizens unless Congress intervenes, its trustees said.
That is three years sooner than projected in 2011 for the retirement benefits program, which serves 44 million people, the trustees said in an annual report today. Social Security's disability program, which aids 11 million Americans, will run through its trust fund in 2016, two years earlier than predicted. The report attributed the fiscal stress in part to the weak economy.
Trustees say Medicare, Social Security funds running out quickly
By Sam Baker - TheHill.com
Medicare and Social Security are on a fast track to deep fiscal problems, trustees for the two programs warned Monday.
The Medicare trust fund will be "exhausted" — meaning it won't have enough money on hand to cover the benefits it's supposed to provide — by 2024, the trustees said, the same time frame anticipated in a report last year. Social Security will reach that tipping point in 2033, three years earlier than predicted last year.
US Welfare State To Run Out Of Cash Sooner Than Hoped For
Submitted by Tyler Durden - ZeroHedge.com
Medicare trustees just released their annual report on the program's finances and it does not make for healthy reading. In fact the main headline takeaway is that the social security fund itself will now run dry three years sooner than was projected in 2011. While 2035, the new deadline, seems a long way off, the 5% rise in medicare costs in 2011 should be enough to worry most and perhaps more disturbing is the separate disability program is set to run dry in 2016 (two years earlier than expected) and Medicare is to be depleted by 2014. Headlines via Bloomberg:
• MEDICARE COSTS RISE 5 PERCENT TO $549 BILLION IN 2011 :UNH US
• LONG-TERM PROJECTIONS FOR MEDICARE WORSEN, TRUSTEES SAY :UNH US
• HOSPITALS TO FACE MEDICARE PAYMENT CUTS IN 2024, U.S. SAYS
• TRUSTEES SAY FUND TO RUN OUT THREE YEARS EARLIER THAN PREDICTED
Added Tim Geithner's ever-positive spin-fest...
GAO says Medicare bonuses are bogus
Republicans see pre-election ploy
By Paige Winfield Cunningham-The Washington Times
Federal investigators said Monday that the administration is wasting billions on extra bonuses for health plans and should cancel them right away, fueling Republican complaints that President Obama is trying to postpone his health care law's unpopular Medicare cuts until after the election.
The bonuses for high-quality MedicareAdvantage plans were designed to drive down the government's long-term costs by putting seniors in approved private plans that cut their out-of-pocket costs in exchange for limits on care and choice. But the Government Accountability Office report says the bonuses will cost the government $8.3 billion over the next decade, almost three times what was intended.
The Next Republican Party
By Richard Reeves - Truthdig.com
LOS ANGELES—Once upon a time there was a political tribe called "liberal Republicans," led by chieftains named Nelson Rockefeller, Jacob Javits, Mac Mathias and others. They were generally liberal on social issues and relatively conservative on fiscal issues.
They are extinct now. They were caught in a kind of pincer movement between conservative Republicans demanding ideological purity in their own party and more liberal Democrats, who were able to replace them by attacking them for not being liberal enough, particularly on issues like Vietnam and welfare. They were too liberal for their own party, but not quite liberal enough for the opposition. Some, in fact, like John Lindsay, just gave up and became Democrats. That never really worked, although conservative Democrats from the South, among them Strom Thurmond and Richard Shelby, were able to find Southern comfort in the Republican Party.
Dr. Paul Craig Roberts:
U.S. Police State Masquerades as A Democracy
Americans, the British, and Western Europeans are accustomed to thinking of themselves as the representatives of freedom, democracy, and morality in the world. The West passes judgment on the rest of the world as if the West is God and the rest of the world are barbarians in need of chastisement, invasion, and occupation. As readers know, from time to time I raise questions about the validity of the West's extreme hubris.
TSA installs undercover agents on Texas busses
RT.com
If you are one of the select few that actually enjoys riding the bus, you might have a change of heart after hearing what the TSA is doing in Houston, Texas.
Democratic Congresswoman Sheila Jackson Lee held a press conference last week to discuss the details of Houston's newest initiatives. It is being branded as a program called "BusSafe" and the press release describes it as a necessity for enhancing safety in the city's public transportation system. Just exactly how they are going about accomplishing that has already attracted its fair share of critics, though.
Under the program launched last week, passengers on busses run by the Houston METRO system will be subjected to random questioning and searches from "counter-terrorism experts" hired by the Transportation Security Administration. Yes, the very same TSA that has become notorious for invasive pat-downs at airports across the country are opening up a new front in their war on privacy, and it's on Houston's public busses.
Democrats plan to force vote
on Arizona immigration law if it's upheld by court
By Rosalind S. Helderman - WashingtonPost.com
Senate Democrats are making plans to force a floor vote on legislation that would invalidate Arizona's controversial immigration statute if the Supreme Court upholds the law this summer.
Sen. Charles E. Schumer (D-N.Y.) will announce the fallback legislation at a hearing on the Arizona law Tuesday, a day before the Supreme Court hears oral arguments in a suit to determine whether Arizona had the authority to enact the 2010 state crackdown.
Ex-FBI Agent Reveals What to Do
If The Police Get in Your Face
Mike Adams talks Dale Carson, a trial lawyer, former FBI agent, police officer, detective, SWAT team member, undercover operative and private investigator who now defends clients against unfair charges. He is the author of Arrest-Proof Yourself, which is required reading for anyone wanting to avoid unnecessary interactions with the law.
Are the Limits of American Power Closer Than We Think? It's getting tougher for the U.S. to impose its will, but we can still lead the world -- the trick is convincing the world to follow.
By Max Fisher - TheAtlantic.com
Here are a few of the big, global problems that the U.S. has recently tried and failed to resolve:
• North Korea's recent test-launch of a long-range missile, which U.S. diplomacy and threats couldn't deter.
• A new war between the Sudans, breaking a short-lived peace that the U.S. spent years building.
• Syria's continuing massacre of civilians, for which neither American diplomats nor American generals can find an acceptable solution.
• Egypt's tightening military rule, which has gotten so bad that the U.S. spent weeks just to extricate some detained American NGO workers.
• Israel's settlement growth in Palestinian territory, which the U.S. opposes as a barrier to Middle East peace.
• The Yemeni president's refusal to abdicate power, despite a U.S.-brokered pledge that he would step down.
• Afghanistan's unceasing war with itself, to which ten years of American-led war have not brought peace.
• Iran's nuclear development, which looks to be continuing despite U.S. sanctions and recent U.S.-led disarmament talks.
Pentagon Plans New Spy Service... Defense Department Plans New Intelligence Gathering Service
By ERIC SCHMITT - NYTimes.com
WASHINGTON — The Pentagon is revamping its spy operations to focus on high-priority targets like Iran and China in a reorganization that reflects a shift away from the war zones of Iraq and Afghanistanthat have dominated America's security landscape for the past decade.
Under the plan approved last week by Defense Secretary Leon E. Panetta, case officers from the new Defense Clandestine Service would work more closely with counterparts from theCentral Intelligence Agency at a time when the military and spy agency are increasingly focused on similar threats.
Drones to soar over US and Canada sooner than thought?
RT.com
Non-military agencies have been gearing up to get unmanned drones in the sky across America, and now it looks like those controversial aircraft will soon be heading north, as well.
http://rt.com/news/iran-usa-drone-decode-755/Not only are surveillance drones expected to soar in droves across American airspace in the not-so-distant future, but now it has been confirmed that authorities in Canada have successfully followed through with test flights of the unmanned aircraft for their own use.
A spokesperson for CAE, Inc., which is located in Montreal, Quebec, Canada, has confirmed that a series of test flights have occurred in recent weeks as the country looks towards purchasing drones for domestic use. According to CAE's vice president, Pietro D'Ulisse, the capabilities of the craft will be a great asset for law enforcement across Canada.
* * * * * IMPORTANT * * * * *
DNS Changer Malware is serious -
find out if you computer is infected.
Non-invasive quick link for US check - http://www.dns-ok.us
if background is 'green' you're OK; if RED, not OK - seek antivirus software alternatives to restore system to normal.
DNS Changer - Information & links for other countries
The FBI is seeking information from individuals, corporate entities and Internet Services Providers who believe that they have been victimized by malicious software ("malware") related to the defendants. This malware modifies a computer's Domain Name Service (DNS) settings, and thereby directs the computers to receive potentially improper results from rogue DNS servers hosted by the defendants.
Tech groups pushing for cyberthreat info-sharing bill CDT and other civil liberties groups
continue to raise privacy concerns about CISPA
By Grant Gross - Computerworld.com
IDG News Service - Several technology trade groups are pushing the U.S. Congress to pass a controversial cyberthreat information-sharing bill, despite ongoing privacy concerns voiced by digital rights and civil liberties groups.
The U.S. House of Representatives could vote on the Cyber Intelligence Sharing and Protection Act, or CISPA, next week, and several tech trade groups have called for Congress to pass the legislation.
CISPA is a "measured approach that will better protect people and the systems we rely on from cyber threats," wrote Dean Garfield, president and CEO of the Information Technology Industry Council, and Bruce Mehlman, executive director of Technology CEO Council, in a Friday column for The Hill newspaper. "It will protect the fundamental relationship between Internet users and the companies that provide them online access and services. User experience and history, transactions, and personal information will be better safeguarded, providing more personal security online -- not jeopardizing it."
Facebook's Growth Slows as IPO Nears
By GEOFFREY A. FOWLER And SHIRA OVIDE - WSJ.com
As Facebook Inc. enters the final weeks before its landmark initial public offering, not all of the arrows are pointing up.
In what is likely to be the last snapshot of its financial condition before the expected May IPO, Facebook disclosed Monday that its first-quarter profit and revenue declined from the final quarter of 2011.
The social network's expenses are mounting, as it builds data centers and hires engineers to run a network for its more than 900 million users around the globe. The company also agreed to spend $550 million on a deal with Microsoft Corp. to shore up its patent arsenal amid escalating tensions in a legal dispute with Yahoo Inc.
Facebook pays Microsoft $550 million for AOL patents
By Alexei Oreskovic
(Reuters) - Facebook will pay Microsoft Corp (MSFT.O) $550 million in cash for hundreds of patents recently sold by AOL, the social networking company's latest move to bulk up its intellectual property in the wake of a lawsuit filed by Yahoo.
The deal will give Facebook 650 patents and patent applications, as well as a license to another 275 patents and applications owned by Microsoft.
Microsoft trumped Amazon, eBay and other tech giants earlier this month with its more than $1 billion purchase of most of AOL Inc. (AOL.N) patent trove.
Ladies Beware – New Mobile Phone
Allows Perverts to See Through Your Clothes
by Giacomo - GodFatherPolitics.com
I remember when I was a kid and watched Superman on televsion and wondered what it would be like to have his X-ray vision and see through walls. Then there were the cartoons where someone had x-ray glasses that could see someone's skeleton. I remember the other boys in the neighborhood saying they wanted a set of x-ray glasses to see through the girls' dresses.
Well, those perverted wishes are about to become a reality thanks to a new high technology computer chip being developed by researchers at the University of Texas in Dallas. Dr Kenneth O, director of Texas Analog Center of Excellence and chaired professor of electrical engineering at UT Dallas announced that his team has developed a chip that utilizes a range of the electromagnetic spectrum that has never been used before and that it falls between infrared and microwave.
Meteor Produces Sound and Fury
By ROBERT LEE HOTZ - WSJ.com
A fiery meteor created a thundering explosion and traced a rare daylight fireball seen for about 600 miles across Nevada and California on Sunday, before apparently breaking up harmlessly at high altitude, astronomers said.
NASA researchers at the Jet Propulsion Laboratory said the midair explosion, centered over California's Central Valley east of the San Francisco Bay area, was the equivalent of the detonation of about 3.8 kilotons of TNT—about one quarter the energy released by the atomic bomb dropped on Hiroshima, Japan, in 1945.
60 Minutes on the Plight of Palestinian Christians
By Robert Wright - TheAtlantic.com
Last night's 60 Minutes segment about the plight of Christians in the West Bank has gotten a lot of attention, in part because of the attempt by Israeli ambassador Michael Oren to intervene with CBS brass while the segment was being put together. (See the 11-minute point in the video below, where CBS correspondent Bob Simon confronts Oren with this fact.)
You can see why Oren might rather the piece hadn't aired. Things that Palestinian Muslims routinely say about the Israeli occupation may get more traction in America when Palestinian Christians say them. Such as this, from a Christian clergyman: "The West Bank is becoming more and more like a piece of Swiss cheese, where Israel gets the cheese--that is, the land the water resources, the archaeological sites, and the Palestinians are pushed in the holes."
Japan Nuclear Watch, April 23: Can You Rebuild a Cooling System Inside a No-Go Zone?
By: Scarecrow blog
The good news is that over the last two weeks or so at the Fukushima Daiichi Nuclear plant, there have been no further spectacular explosions, no new massive breaches of containment or as far as we know, massive releases of radiation, though there continue to be dangerous levels inside the reactors, in nearby water and in surrounding areas.
The bad news is the Japanese authorities have been unable to make substantial progress against the massive quantities of contaminated water still leaking from the damaged units. In the last three days, for example, they attempted to pump contaminated water out of the flooded trench outside Unit 2′s turbine building, but managed to lower the water level by only a few centimeters. In previous weeks, they would pump some out one day, but then find the water rising back the next with varying degrees of radiation, because water injected into the reactors leaked and found its way out and downhill.
China-Philippines Standoff Intensifies China's belligerency is on display on the world stage once again.
TheTrumpet.com
Beijing intensified a 10-day standoff between the Philippines and China on Friday by sending a third ship to a shoal in the South China Sea where both sides claim sovereignty.
The confrontation at the Scarborough Shoal began on April 10 when a Philippine warship accused eight Chinese fishermen of illegal entry and poaching in Philippine waters, and attempted to arrest them. Philippine officials said the vessels held endangered marine resources such as giant clams and live sharks, which it is illegal to catch. The Philippine officials attempted to arrest the fishermen, but were stopped by the arrival of two Chinese government vessels, which ordered the Philippine warship to leave Scarborough, saying it was Chinese territory. The Philippine ship refused to back down, saying that the territory lies well within Philippine waters. The UN Convention on the Law of the Sea designates a country's exclusive economic zone as 230 miles from its coastline, and the shoal in question is only 140 miles from the Philippine coast. China's closest territory to the shoal, Hainan province, is 542 miles away from the Scarborough Shoal.
North Korea threatens South with 'special attack'
By Shaun Waterman-The Washington Times
North Korea threatened Monday to reduce "to ashes" South Korean targets — including news organizations — with an unspecified "special attack," the latest round of aggressive rhetoric that many expect will culminate with Pyongyang's third nuclear test.
The North Korean military's "special operation action group" delivered the threat in a statement that was read during a special bulletin on state-run television. The action group directed the statement at the Seoul government, South Korean news organizations and other "rat-like elements" in the South it said were "destroying fair-minded public opinion."
FDIC closes bank in New Jersey,
makes 17 US bank failures so far in 2012
AP - WashingtonPost.com
WASHINGTON — Federal regulators have shuttered a bank in New Jersey, bringing to 17 the number of banks that have failed so far this year.
The Federal Deposit Insurance Corp. said Friday that it closed Fort Lee Federal Savings Bank, FSB, in Fort Lee, N.J. The bank, with has a single branch, had about $51.9 million in assets and $50.7 million in deposits as of Dec. 31.
Many Signs Point to Gold Higher Prices
By: Przemyslaw Radomski - MarketOracle.co.uk
The Reserve Bank of India on Tuesday surprised investors with a bigger-than-expected half-percentage-point cut to its key lending rate, sending it to 8%, saying the state of India's economy is "a matter of growing concern." Assuming a normal monsoon season, continuing improvement in industrial production and in the global outlook, the RBI said it expects growth for the current year at 7.3%. Inflation in India slowed less than expected in March. Indians, who love gold in any case, could turn to it as an inflation hedge. Meanwhile, the Indian Post office system is offering a 6% rebate on gold coins of various denominations for the forthcoming Akshaya Tritiya festival, which is one of the biggest gold buying festivals in the country.
Missouri Gold And Silver Money Bill Moves Forward
By Mike Lear - Implode-explode.com
The House has approved a plan its sponsor says would give Missourians a more efficient way to back purchases with gold and silver, and hedge against inflation in the process.
Representative Paul Curtman (R-Pacific) says his proposal is based on a new kind of business that has developed in Utah, that he describes as a sort of "clearing house" for goldand silver
MSNBC's Dylan Ratigan talks about Ron Paul Gold Standard
MSNBC's Dylan Ratigan and the show's mega panel to talk about the Ron Paul-supported push to bring the U.S. back to the gold standard. Could the gold standard stimulate the economy?
A Return to the Gold Standard,
or Gold Behind Currencies Part 4
BY JULIAN PHILLIPS - FinancialSense.com
"Dirty Float"
Today we have a set of circumstances that are totally different to those times. All currencies are in a "dirty float" that sees exchange rates moving relatively freely, being the subject of market forces, including manipulation by their own governments. The days of revaluation and devaluation are things of the past. So no amount of systemic change will see the re-imposition of fixed exchange rates. Any new monetary system or adjustment to the present system will have to accept this reality.
Currency Wars: Gambling With Other Peoples' Money
By: Axel Merk - MarketOracle.co.uk
If running out of your own money wasn't bad enough, policy makers are increasingly spending other peoples' money to bail their country out. At the upcoming G-20 meeting, finance ministers from around the world will contemplate an increase to the resources of the International Monetary Fund (IMF). At stake for politicians is whether they can continue to do what they know best – to play politics. In contrast, at stake for investors may be whether currencies will retain their function as a store of value.
Unofficial Problem Bank list declines to 939 Institutions
by CalculatedRisk.com
As expected, the OCC released its enforcement action activity through mid-March this week, which contributed to many changes to the Unofficial Problem Bank List. In all, there were 12 removals and seven additions that result in the list having 939 institutions with assets of $365.6 billion. A year ago, the list held 976 institutions with assets of $422.2 billion.
One Nation Under Debt With Endless Debt Slavery For All
By Michael Snyder - EndOfTheAmericanDream.com
Debt is a "soft" form of slavery. In America today, it is not legal to bind people up with chains and force them to work for you, but that doesn't mean that there are not millions upon millions of slaves in this country. When you borrow money, you willingly become a servant to the lender. Sadly, there are millions of Americans that will spend the rest of their lives working to pay off their debts but they will never escape the endless debt slavery that they have gotten themselves into. When you add up all forms of debt in the United States at this point, it comes to more than 54 trillion dollars. That is more than $178,000 for every man, woman and child in America. We truly are one nation under debt, and we have created the biggest debt bubble in the history of the planet. Unfortunately, all debt bubbles eventually burst, and when this one bursts the consequences are going to be unlike anything ever seen before.
Keiser Report: Corpse of Economy (E278)
In this episode, Max Keiser and co-host, Stacy Herbert discuss Dr Bernanke's hologram and his real tsunami of money. In the second half of the show Max talks to Alec Empire of Atari Teenage Riot about copyright, Anonymous and free speech and the armed government goons sent to shakedown grannies.
No Way Back
By Frederick Sheehan - DailyReckoning.com
04/19/12 Gold and silver will both rise far above their current levels. "When" is unknowable. "Why" is due to the unremitting and insolent amorality of central bankers and their practices. If not Simple Ben at the Fed, his compatriots across the globe are a daily source of confusion, contradiction, and stupidity.
The stupidity may be real or it may have evolved from an unwillingness to think, as George Orwell wrote of Stanley Baldwin's and Neville Chamberlain's abdication of responsibility in the 1930s: "What is to be expected of them is not treachery or physical cowardice, but stupidity, unconscious sabotage, an infallible instinct for doing the wrong thing… Only when their money and power are gone will the younger among them begin to grasp what century they are living in."
FOMC Meeting Preview
by CalculatedRisk
There will be a two day meeting of the Federal Open Market Committee (FOMC) this coming Tuesday and Wednesday. I expect no changes to the Fed Funds rate, or to the program to "extend the average maturity of its holdings of securities" (scheduled to end in June), or to the program to "reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities". I don't expect further accommodation (aka "QE3") to be announced at this meeting.
Did Bernanke Prevent Another Depression?
Mises Daily: by Frank Shostak
In a lecture given at George Washington University on March 27, 2012, the chairman of the Fed said that the US central bank's aggressive response to the 2007–2009 financial crisis and recession helped prevent a worldwide catastrophe. Various economic indicators were showing ominous signs at the time. After closing at 3.1 percent in September 2007, the yearly rate of growth of industrial production fell to minus 14.8 percent by June 2009. The yearly rate of growth of housing starts fell from 20.5 percent in January 2005 to minus 54.8 percent in January 2009.
Bernanke's Plan for the Middle Class
by MIKE WHITNEY
Do you want to understand what the Fed is doing, but don't have time to wade through volumes of tedious economics writing?
Well, now the pros at dshort.com have made all that possible. They've reduced 4 years of monetary policy into one chart that illustrates exactly what the Fed is up-to and who benefits from the policy.
Here's the link.
The chart shows how the Fed's lending facilities, zero interest rates and $700 billion bank bailout (TARP) helped to put a bottom under a market that had fallen off a cliff. Then came the first round of Quantitative Easing (QE1) during which the Fed purchased $1.25 trillion in mortgage-backed securities (MBS), $200 billion in US Treasuries and $150 billion in agency debt (Fannie and Freddie) This massive infusion of liquidity triggered a sharp rebound in equities starting on March 9, 2009. It also transformed the Central Bank's balance sheet into the largest waste treatment facility on planet earth.
Results of this Weekend's G-20 Meeting
Could be Huge for the Market
BY BRUCE KRASTING - FinancialSense.com
There will be some drama, and few splashy headlines out of the G-20 meeting in D.C. this weekend. Europe is cracking up (again), and the IMF and big guns of the G-20 will spout about "expanded firewalls" and "global co-ordination" in the final communique Sunday evening. If we don't get a big dose of "happy talk" then the markets will crap out.
A big agenda item for the weekend is the $400b capital raise for the IMF. There will be plenty of corridor conversations and side deals regarding which country puts up what, and what deals it gets for the money.
There are two sideshows of interest in the IMF's new money raise. The first is the USA; the second is Switzerland.
Geithner Says Europe Must Be Creative, Aggressive in Crisis
By Ian Katz - Bloomberg.com
U.S. Treasury Secretary Timothy F. Geithner said the global economic recovery is fragile and Europe's effort to prevent the spread of its debt crisis depends on the willingness and ability of the region's leaders to act aggressively and creatively.
"The recovery remains fragile, with continued risks from the euro area and higher oil prices," Geithner said in a statement today in Washington to the International Monetary Fund's policy steering committee. The U.S. economy "continues to gather strength," he said.
Correction Likely to Continue on Weak Rebound;
Spain Is Key
BY CHRIS PUPLAVA - FinancialSense.com
Since peaking earlier in the month the S&P 500 sold off less than 5% into last week's lows while the markets have consolidated over that time. After last week's correction we reached technical levels often associated with decent rallies and yet the weak rebound in the markets tends to suggest less enthusiasm from the bulls and likely indicates the correction isn't over. There are a few potential catalysts out there that could move the markets in either direction so watching these key points of data may provide clues as to the market's likely direction.
France's Sarkozy, Hollande head for runoff Far-right's Le Pen seen in third in French first round
By William L. Watts, MarketWatch.com
FRANKFURT (MarketWatch)—French President Nicolas Sarkozy faces an uphill battle to avoid becoming the latest European leader to be ousted in the wake of the global financial crisis after being projected to come in second to Socialist challenger François Hollande in Sunday's first-round presidential election.
In an unexpected twist, far-right National Front leader Marine Le Pen was set for a third-place finish in the 10 candidate field, while far-left firebrand Jean-Luc Melenchon appeared set to underperform pollsters' expectations with a fourth-place finish.
Hollande edges Sarkozy in French vote, Le Pen surges
By Paul Taylor and Vicky Buffery
(Reuters) - Far-rightist Marine Le Pen threwFrance's presidential race wide open on Sunday by polling nearly 19 percent in the first round - votes that may tip a runoff between Socialist favourite Francois Hollande and conservative President Nicolas Sarkozy.
Hollande led Sarkozy by 28.2 percent to 27.0 percent with more than four fifths of votes counted, the Interior Ministry said, meaning the two will meet head-to-head in a decider on May 6 that may be closer than pundits had been expected.
An Eye On France, Italy And The Speculators
by Doug Noland - PrudentBear.com
I wanted to dive a little deeper into John Taylor's March 29, 2012, Wall Street Journal op-ed, "The Dangers of an Interventionist Fed - A century of experience shows that rules lead to prosperity and discretion leads to trouble." The monetary policy "rules vs. discretion" debate is near and dear to my analytical heart, and I again tip my hat to Dr. Taylor for adeptly raising this critical issue. For this Bulletin, I'll shift the focus somewhat.
Spain Bans Cash Dominant Social Theme: This cash has gotta go. It's evil.
TheDailyBell via LewRockwell.com
Free-Market Analysis: They are not even making a pretense anymore that the West is run via market economies. As we have long predicted, the phony "sovereign debt" crisis in Europe is being used to justify all sorts of authoritarian measures.
It is government pols that gladly borrowed what European banks threw at them. And somehow the upshot earlier this week is that Spanish citizens now lose the right to conduct many transactions in cash.
IMF encourages Europe's economic suicide China, Japan, America, the oil powers, and the rising economies of Latin America had a chance to pull Europe back from suicide through IMF pressure, but the world dropped the ball.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Another vast pledge to save the euro, another chance lost to break the hold of Europe's austerity mystics and force a shift in strategic direction.
"We're north of a trillion dollars," said Christine Lagarde, the International Monetary Fund's queen bee. Kudos to her for netting such sums in her Louis Vuitton handbag but what exactly does this achieve, given that Europe remains bent on committing "economic suicide" -- in the words of Nobel laureate Paul Krugman?
IMF allows eurozone to stay in its fantasy world Under Christine Lagarde's stewardship the IMF is continuing to indulge the eurozone's banks while the fund's donor countries seethe.
By Liam Halligan - Telegraph.co.uk
For some time, International Monetary Fund supremo Christine Lagarde has argued that a stronger "global firewall" is needed, to contain "any future financial crises". Well, at this weekend's IMF-World Bank meetings in Washington, she announced there are now "firm commitments" from member states to boost the IMF's lending power.
European Union is coming apart As France Goes, So Goes Europe?
by Patrick J. Buchanan - LewRockwell.com
When survival is at stake, one may hear from a politician not what he believes – but what he thinks the people deciding his fate wish to hear.
By that standard, what do the people of France, in the final weeks of their presidential election, wish to hear from their candidates?
President Nicolas Sarkozy seems to believe his countrymen are in a deeply nationalistic frame of mind.
European Splintering Escalates:
Dutch Government Falls;
Slovakia Government Collapsed in March;
Czech Government Collapse Coming Right Up
By Mike Shedlock - GlobalEconomicAnalysis.com
The Netherlands government has officially collapsed in a dispute over austerity measures. Elections likely in September. Meanwhile, the Czech government is also on the verge of collapse, for the same reason: austerity measures.
The Financial Times reports Dutch government falls over budget talks
The Dutch governing coalition collapsed on Saturday when far-right politician Geert Wilders pulled out of budget cut talks, saying it was not in the Netherlands' interest to meet the deficit limit of three per cent imposed by the new European fiscal pact.
Talking Gangster Banks with Max Keiser
Matt Taibbi - RollingStone.com
I originally was going to post this video and just direct readers to my appearance on the always-excellent Max Keiser report at the 12:30 mark – Max, who usually lives in Paris, is in the States, and I got to come on his show for a quick interview. We talked about organized crime, the slavish media, and other topics. I've liked Max ever since his seminal "They're scum!" YouTube classic TV spot about Goldman, Sachs, so it was cool to finally meet him in person. I would be remiss in not also suggesting that readers take a quick look at Max's inspired Jamie Dimon impersonation at the 8:40 mark.
Keiser Report: Vicious Circle of Bankster Huddles
In this episode, Max Keiser and co-host, Stacy Herbert discuss huddles and cuddles with the Goombahs of Wall Street and the technical violations that cannot be called by name. In the second half of the show Max talks to Rolling Stone journalist, Matt Taibbi, about the Wall Street mafia, their small and big time rackets and the process of writing these crime stories for a wide audience.
In Economists We Trust We are a society built on market-based solutions—
but should everything have a price?
By JONATHAN V. LAST - WSJ.com
Economists don't really like presents. They think they are irrational. No gift giver can know what another person wants most, and any present is just a wasteful approximation. The only gift anyone should ever give is cash. It is optimally efficient.
Michael J. Sandel, the Harvard political philosopher, takes a different tack in "What Money Can't Buy: The Moral Limits of Markets." He argues that while giving a present may not make much economic sense, it is perfectly sensible in terms of our cultural values. There are social ethics that have long marked the practice, maximizing sympathy, generosity, thoughtfulness and attentiveness. The optimal value, despite what the economists tell us, isn't always the most efficient one.
The Fallacy of "Too Big To Fail"–
Why the Big Banks Will Eventually Break Up
Why politicians let MF Global investors get taken
James J Puplava CFP interview with Chris Whalen
In a riveting interview on the banking industry, Christopher Whalen of Tangent Capital Partners in New York joins Jim on Financial Sense Newshour to discuss the fallacy of "too big to fail," conflicts of interest in the derivatives markets, problems with the 2005 bankruptcy laws, and why politicians let MF Global investors get taken.
Beijing takes mini-step to free-float currency
By Richard Colapinto - ATimes.com
NEW YORK - The People's Bank of China (PBOC) recently announced that it would widen the daily trading limit of its currency, the yuan, against the US dollar from 0.5% to 1.0%. This would allow the yuan to fluctuate in a wider range around a central parity rate set each day by the government.
As the new policy somewhat relaxes the controls over the currency by the government, it comes at a time when the economy is showing signs of slowing amidst the most significant political turmoil occurring inside the Communist Party since the Tiananmen Square protests of 1989.
China: Triumph & Turmoil - Episode I Emperors
Niall Ferguson shows how the vast apparatus of the Chinese state has always been called on to subjugate individual freedom to the higher goal of unity. Ferguson also examines how, on the other hand, centralised control produces tensions that threaten to destroy the country.
1 in 2 new graduates are jobless or underemployed
CNBC.com
WASHINGTON - The college class of 2012 is in for a rude welcome to the world of work.
A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don't fully use their skills and knowledge.
Young adults with bachelor's degrees are increasingly scraping by in lower-wage jobs — waiter or waitress, bartender, retail clerk or receptionist, for example — and that's confounding their hopes a degree would pay off despite higher tuition and mounting student loans.
Obama officials push Congress
to block doubling of student loan interest rate
By Daniel de Vise - WashingtonPost.com
The Obama administration on Friday urged Congress to step in to prevent a doubling of the interest rate on a massive federal student loan program this summer, affecting an estimated seven million borrowers.
Congress halved the interest rate on federally subsidized Stafford loans to 3.4 percent in 2007. If the legislation isn't extended, the rate reverts to 6.8 percent in July.
In a news conference Friday, Education Secretary Arne Duncan said the higher rate would add $1,000 a year to the repayment cost of the average loan.
Not all foreclosures are equal
By Michelle Singletary - WashingtonPost.com
We know from numerous reports that the housing crisis hit minority families pretty hard. Minority homebuyers by the tens of thousands were trapped in predatory mortgage loans and, as a result, their communities disproportionately felt the impact of foreclosures.
Now fair-housing organizations have filed complaints with the U.S. Department of Housing and Urban Development, alleging discrimination in the marketing and maintenance of foreclosed properties in minority neighborhoods in nine major cities. The banks targeted by the National Fair Housing Alliance and four of its member organizations are U.S. Bank and its parent company, U.S. Bancorp, along with Wells Fargo.
US Republicans eye health plan
should court overturn reform
WASHINGTON (Reuters) - Republicans in Congress are getting ready to answer an election-year question that has dogged the party's campaign for months: How would it replace President Barack Obama's healthcare law if the measure is overturned or repealed?
House Republicans are working to create a legislative blueprint they can sell to voters after the Supreme Court rules on Obama's Patient Protection and Affordable Care Act, the nation's most sweeping healthcare legislation since Medicare and Medicaid in the 1960s.
Kathleen, I've got a feeling you're still in Kansas Republicans embrace big-government health care
Sebelius left behind
By Dr. Milton R. Wolf-The Washington Times
Liberals are a curious breed. They actually believe the government can mandate you into prosperity. They wave a magic wand, and the universe bends to their whim. At the end of each day, they rest their weary heads blissfully - willfully - unaware of the damage they cause.
Witness Health and Human Services (HHS) Secretary Kathleen Sebelius. Before she was wielding the iron fist of power granted to her by Obamacare, she was the Kansas' governor and, before that, the Kansas insurance commissioner. Health insurance mandates were her stock in trade, and with each new government dictate, Kansans saw their premiums increase. No matter how well-intentioned, the very nature of a mandate is that it forces consumers to buy something they don't want, or why the need for a mandate? It's unavoidable, then, that Kansas families' costs increased and many simply could no longer afford insurance.
How to Care for Your Aging Loved Ones
While Still Taking Care of Yourself San Francisco researchers Alexander Smith and Jennifer King share expert advice on how to look after the elderly without losing sight of your own well-being.
Hans Villarica - TheAtlantic.com
New research shows that most disabled seniors are relatively happy with their lives.
"These folks are not doing badly," says senior investigator Alexander Smith. "Their quality of life, as they rate it, is definitely higher than some might assume it would be for older people with disabilities."
Smith and co-author Jennifer King conducted a series of in-depth interviews with an ethnically diverse group of 62 disabled elders for their Journal of the American Geriatrics Society study. Eight-five percent of them responded "fair to very good" when asked about their well-being.
Stung by the Keystone XL Debacle,
Canada Looks Eastwards
By John Daly - OilPrice.com
Given that the Keystone XL pipeline is apparently dead in the water at least until after the next presidential election, Canada is seeking new export markets in Asia for its booming oil and natural gas production.
Few Americans realize it, but according to the U.S. Energy Administration, the United States total crude oil imports now average 9.033 million barrels per day (mbpd), with Canada sending 2.666 mbpd southwards to the U.S., making it America's top source of oil imports. In 1988, Canada and the United States signed a free trade agreement that was supposed to ensure Canada would never prevent the U.S. from having first access to its huge oil reserves and bilateral trade is now worth $750 billion annually, with annual Canadian imports of U.S. goods now worth yearly than those taken by the BRICS (Brazil, Russia, India, and China) South Africa, Germany, and Great Britain combined.
The Aftermath of Deepwater Horizon
by JORDAN FLAHERTY - Counterpunch.org
On April 20, 2010, a reckless attitude towards the safety of the Gulf Coast by BP, as well as Transocean and Halliburton, caused a well to blow out 5,000 feet below the surface of the Gulf of Mexico. As the world watched in horror, underwater cameras showed a seemingly endless flow of oil – hundreds of millions of gallons – and a series of failed efforts to stop it, over a period of nearly three months. Two years later, that horror has not ended for many on the Gulf.
"People should be aware that the oil is still there," says Wilma Subra, a chemist who travels widely across the Gulf meeting with fishers and testing seafood and sediment samples for contamination.
Bank of America leads the way in short sales
Sacramento Business Journal by Adam O'Daniel
Blame Bank of America for its fair share of foreclosure problems all you want. But the Charlotte-based lender also is getting some credit for alternatives to the foreclosure process.
RealtyTrac this week says BofA outpaces all other large lenders in approving short sales, according to a Bloomberg report. The bank approved more than 5,000 short sales in January, nearly twice the number of Wells Fargo.
Bank of America is the Sacramento region's second largest bank in terms of local deposits. Wells Fargo is the largest bank.
Joel Kotkin: The Great California Exodus A leading U.S. demographer and 'Truman Democrat' talks about what is driving the middle class out of the Golden State.
By ALLYSIA FINLEY - WSJ.com
'California is God's best moment," says Joel Kotkin. "It's the best place in the world to live." Or at least it used to be.
Mr. Kotkin, one of the nation's premier demographers, left his native New York City in 1971 to enroll at the University of California, Berkeley. The state was a far-out paradise for hipsters who had grown up listening to the Mamas & the Papas' iconic "California Dreamin'" and the Beach Boys' "California Girls." But it also attracted young, ambitious people "who had a lot of dreams, wanted to build big companies." Think Intel, Apple and Hewlett-Packard.
California City Hit With $2 Million 'Parking Ticket'
By Rich Smith, The Motley Fool - DailyFinance.com
Faced with the prospect of becoming the biggest municipal bankruptcy in U.S. history, in February, the city of Stockton, Calif., decided on a novel gambit. To avoid going "bankrupt," they'd simply stop paying some of their bills, leaving more money to pay their other bills.
Specifically, Stockton's City Council decided to skip a $779,935 payment to Wells Fargo (WFC), owed as an installment on $32.8 million worth of bonds issued to finance the construction of two downtown parking garages. So problem solved, right? No?
Would you buy a $60 energy-efficient light bulb?
By Rene Lynch - LATimes.com
Earth Day 2012 arrives with sticker shock: Brace yourself for the $60 light bulb.
Light bulb manufacturer Philips is flipping the switch Sunday on its new super-duper energy-efficient LED light bulb; that's when the bulb will go on sale at various outlets, including Home Depot. The full retail price is $60, but consumers will be able to find online deals, rebates and subsidies that will cut the price by $10 or more, according to the Associated Press.
Walmart's Massive Bribery Scandal: What Happens Now? Revelations that the company may have hushed up evidence of kickbacks to Mexican officials could drag down past and present executives.
By Ben Heineman Jr. - TheAtlantic.com
Senior Walmart executives stopped a far-ranging investigation into pervasive bribery in Mexico, which the company engaged in so it could build stores quickly and obtain market dominance.
So alleges a lengthy, carefully reported New York Times story that is likely to set off an explosion affecting America's eighth largest company and its top leaders, including present and past CEOs. Although facts have to be established by the authorities, this piece is a must read because it presents a detailed case that something was rotten in both Mexico City and Bentonville (Walmart's Arkansas headquarters).
Judge Napolitano Reacts to GSA
Admin. Jeff Neely Pleading the 5th
As we all know, the GSA is in more than a little hot water for a conference they held in Las Vegas ... that was paid for by America's dime. Monday, GSA Administrator Jeff Neely took the stand in the House Oversight Committee's hearings on Capitol Hill. He pleaded the Fifth Amendment for every answer asked by Committee Chairman Rep. Darrell Issa.
Network Science of the Game of Go
By Samuel Arbesman - Wired.com
You can make networks from pretty much anything. Connect people based on friendships or phone calls, proteins based on interaction, words based on sound or meaning, and lots more.
It is high time to start using networks to understand games. And this is already beginning to happen.Aaron Clauset and Winter Mason have used a massive dataset from the videogame Halo to understand teams and how they operate.
But what of the structure of games themselves? In a paper that was recently published in Europhysics Letters, two French scientists decided to apply network science to the game of Go.
Earth Unprepared for Super Solar Storm
by Mike Wall, SPACE.com
Humanity needs to be much better prepared for massive solar storms, which can wreak havoc on our technology-dependent society, a prominent researcher warns.
Powerful blasts from the sun have triggered intense geomagnetic storms on Earth before, and they'll do so again. But at the moment our ability to predict these events and guard against their worst consequences — which can include interruptions of power grids and satellite navigation systems — is lacking, says Mike Hapgood of the British research and technology agency RAL Space.
Feral Drones…and Other Invasive Species
By Eric Fry - DailyReckoning.com
04/20/12 Laguna Beach, California – "There's a bull market in targeted killings," quips Lauren Lyster, the witty and insightful anchor of RT's Capital Account.
Admittedly, this bull market is in its early stages. (Only a couple of American citizens, so far, have met their demise at the losing end of a killer-drone strike). But Lyster is formulating her view of the future by drawing trend-lines from the present — just like any forward-looking investor would do.
Embraer warns on US Air Force contract
By Joe Leahy and Arash Massoudi in New York
Brazil's Embraer has threatened to pull out of the retendering of a politically charged light attack aircraft contract with the US Air Force if the product requirements are changed significantly.
The Brazilian aircraft maker and its US partner Sierra Nevada won the contract last year but it was abruptly cancelled in February after the US Air Force said its staff had botched the documentation for the deal.
* * * * *
Why Is It Necessary For The Federal Government
To Turn The United States Into A Prison Camp?
By Michael Snyder - TheEconomicCollapseBlog.com
There has been no society in the history of the world that has ever been 100% safe. No matter how much money the federal government spends on "homeland security", the truth is that bad things will still happen. Our world is a very dangerous place and it is becoming increasingly unstable. The federal government could turn the entire country into one giant prison camp, but that would still not keep us safe. It is inevitable that bad stuff will happen in life. But we have a choice. We can choose to live in fear or we can choose to live as free men and women. Our forefathers intended to establish a nation where liberty and freedom would be maximized. But today we are told that we have to give up our liberties and our freedoms and our privacy for increased security. But is such a trade really worth it? Just think of the various totalitarian societies that we have seen down throughout history. Have any of them ever really thrived? Have their people been happy? Unfortunately, the U.S. federal government has decided that the entire country needs to be put on lock down. Nearly everything that we do today is watched and tracked, and personal privacy is rapidly becoming a thing of the past. Many of the things that George Orwell wrote about in 1984 are becoming a reality, and that is a very frightening thing. The United States is supposed to be the land of the free and the home of the brave. Sadly, we are rapidly becoming the exact opposite of that.
Judge Andrew Napolitano says the NSA has gone to far.
Intercepting e-mails, secretly turning cell phones on to listen to conversations, gathering finger prints and DNA, etc... If you think I'm talking terrorists you're wrong, this is how our government treats American citizens and "The Judge" Andrew Napolitano says things have gone to far.
Obama is named gun 'salesman of the year' Industry cites uncertainty over policy
By Tim Devaney-The Washington Times
The Obama years have proved to be a boon to the nation's gun industry, which has posted strong gains in jobs, sales, economic impact and taxes paid in the teeth of an economic downturn.
The economic impact of the firearms and ammunition industry - a figure that includes jobs, taxes and sales - hit $31 billion in 2011, up from $19 billion in 2008, according to a survey released Thursday by the National Shooting Sports Foundation (NSSF). Background check requests for firearms purchases set records in 2010 and 2011, according to FBI data.
Gen. Dempsey: US in for 'wild ride' in the Middle East
over the next decade
By Carlo Munoz - TheHill.com
America is heading into an increasingly tumultuous decade in the Middle East, punctuated by repeated popular uprisings that will continue to dismantle long-standing power structures in the region, according to the Pentagon's top uniformed officer.
Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, said he believes the fallout from the ongoing Arab Spring movement will eventually lead to a more democratic Middle East.
Turkey: The odd man in
By Peter Lee - ATimes.com
With a high-profile visit to China, Turkey's Prime Minister Recep Tayyip Erdogan continued his campaign to increase the geopolitical clout of his country.
Turkey has great hopes of emerging (or re-emerging, if one recalls the heyday of the Ottoman Empire) as more than the geographic and economic linchpin of Eurasia. Erdogan hopes to leverage that central position by establishing Turkey as a regional power, a country that can set the agenda for events across the continents.
Afghanistan and US agree
on strategic partnership document A spokesman for the Afghan president, Hamid Karzai, has said a deal has been reached, subject to final consultation
By Emma Graham-Harrison in Kabul - Guardian.co.uk
Afghanistan and the United States have agreed the contents of a long-awaited deal to define their relationship after most foreign troops leave at the end of 2014, although the document sidesteps some of the thorniest questions about the US military presence.
Negotiations on the strategic partnership deal have dragged on for over a year, initially held up by two demands from the Afghan president,Hamid Karzai, that he said were critical to restoring national sovereignty: Afghan control of jails and an end to night raids on Afghan homes.
Why the West is Supporting an Anti-Western Solution in Syria By Yossef Bodansky - OilPrice.com
A Jihadist, Anti-Western Agenda is Being Forced on Syria
The international community has been blindly following a jihadist-driven agenda for Syria; a solution the majority of Syrians reject, but which Turkey and Qatar have been driving. It begs the question: why are analysts in Washington — or Paris or London — not digging more deeply into what is really happening, given that the solution they have endorsed is so profoundly anti-Western?
The key test of the Annan plan and ceasefire to help end the widespread violence in Syria came on Friday, April 13, 2012, in the aftermath of the Friday Sermons across Syria, when agitated and incited masses came out of the mosques, ready to challenge anew the legitimacy of a non-Sunni-Islamist Government in Damascus.
China steps back from supporting Assad,
parts ways with Russia
DEBKAfile.com
Beijing has decided to distance itself from the Assad regime of Syria. Notice of this policy shift came about in a secret exchange of messages with the Obama administration, revealed here exclusively byDEBKAfile's Washington sources. The latest message received in the latter half of last week said: China will no longer be a problem for America in dealing with Assad. That leaves only Russia.
This change of face surfaced at the UN Security Council on Saturday, April 21, when after voting for another 300 observers for Syria, the Chinese delegate Li Baodong made an unusual speech:
"We also call upon the international community to continue its firm support for Mr. Annan's good offices' efforts and consolidate the results achieved, and we strongly oppose any word and act aimed at creating difficulties for Mr. Annan's good offices."
Will Netanyahu Tempt Fate? Will Iran War be Another October Surprise?
by ANDREW LEVINE - Counterpunch.org
Will Mitt Romney and Benjamin Netanyahu concoct a war with Iran? Not if they have a tenth of the sense they were born with. But that's not much consolation when we're dealing, on the one hand, with a vulture capitalist and one time Mormon bishop whose flip flopping gives opportunism a bad name and, on the other, with a fascistically inclined ethnocratic zealot on a mission from God.
Each of them is nefarious enough to tempt fate. To make matters worse, it turns out that the two of them are friends.
Barak to Panetta:
What is your bottom line for Iran?
DEBKAfile.com
Notwithstanding the hugs and personal friendship, Israel's Defense Minister Ehud Barak arrived in Washington Thursday April 19 to tax his host, US Defense Secretary Leon Panetta, with tough questions about the administration's dialogue with Iran. They followed the lines of, "What's going on? Is there a deal? Don't tell me what you have settled with the Iranians, just your minimal demands, your bottom line."
The questions reflected Israel's concern at being kept in the dark about US-Iranian back-track negotiations and American concessions, including President Barak Obama's willingness to yield on full transparency and international nuclear watchdog inspections at Iran's nuclear sites. DEBKAfile reports: The Israeli minister had come to ask for the truth from Panetta's own lips on the urgent instructions of Prime Minister Binyamin Netanyahu, who himself had just received worried phone calls from French President Nicolas Sarkozy and British Prime Minister David Cameron. They wanted to find out how far Washington had gone in concessions to Iran. You Israelis have more clout in Washington than us, they said. You have to try and stop the downhill decline. Concern was also registered from Berlin.
Iran says it recovered data from captured US drone
By ALI AKBAR DAREINI, Associated Press – Google.com
TEHRAN, Iran (AP) — Iran claimed Sunday that it had recovered data from an American spy drone that went down in Iran last year, including information that the aircraft was used to spy on Osama bin Laden weeks before he was killed. Iran also said it was building a copy of the drone.
Similar unmanned surveillance planes have been used in Afghanistan for years and kept watch on bin Laden's compound in Pakistan. But U.S. officials have said little about the history of the particular aircraft now in Iran's possession.
Iran 'building copy of captured US drone' RQ-170 Sentinel
BBC.co.uk
Iran has begun building a copy of the US surveillance drone it captured last year, after breaking its encryption codes, Iranian officials say.
"The Americans should be aware to what extent we have infiltrated the plane," General Amir Ali Hajizadeh, military aerospace chief said.
The RQ-170 Sentinel was shown on Iranian state television last December.
Tehran says it was brought down using electronic warfare; Washington says it malfunctioned.
There Is Not Going To Be A Solution
To Our Economic Problems On The National Level
By Michael Snyder - TheEconomicCollapseBlog.com
For those waiting for our economic problems to be solved, you can quit holding your breath. There is simply not going to be a solution to our economic problems on the national level. So why is that the case? Well, it is because the economic policies of both major political parties are very, very similar when you take a close look at them. Yes, that statement may sound downright bizarre to many Americans, but it is true. Both major political parties supported the Wall Street bailouts, both of them fully support the job-killing "free trade" globalization agenda, both of them have dramatically increased the national debt when in power, both of them fully support the currency-killing policies of the Federal Reserve, and neither major political party would get rid of the income tax and the IRS. And that is just for starters. Yes, there are some minor differences when it comes to taxing and spending between the two parties, but the truth is that they are a lot more similar on economic issues than they are different. What we desperately need on the national level is a fundamental change in direction when it comes to economic policy, but we simply are not going to get that from either the Democrats or the Republicans. That means that there is no hope that the economic storm that is coming will be averted.
Gold/Platinum Ratio
Suggests Much Higher Gold Prices Are Coming Soon
By: Hubert Moolman - MarketOracle.co.uk
There is an interesting pattern developing on the Gold/Platinum Ratio. This pattern is similar to a previous pattern on the silver chart. Below, is a graphic which features the Gold/Platinum Ratio chart (top) as well as the silver chart (bottom) (charts courtesy of stockcharts.com): [se charts]
The graphic is self-explanatory, and indicates that the Gold/Platinum Ratio is in a position similar to where silver was at the end of January 2011. If the ratio was to continue to follow the silver pattern, then we could have gold being 1.7 times the value of platinum in this year. This is consistent with my expectation of a significantly higher "real' gold price (relative to stocks and most commodities).
Fearful, Anti-Social Cash Hoarding How much longer will companies
be allowed to run themselves for cash...?
By Adrian Ash - MarketOracle.co.uk
HOARDING stuff until your home is a health hazard and your family and neighbors hate you isn't only a TV "reality". Perhaps 1 million US citizens are prey to the hoarding compulsion on one estimate, fighting the urge to let everything just keep piling up.
"Hoarding and anxiety," according to one fighting sufferer, "go hand-in-hand. Fear keeps us from letting go of objects we don't need." Overcoming that fear is a tough job, however. "Clean-up usually provokes intense anxiety," says another report, noting that hoarding stems variously from dementia, depression, and obsessive compulsive disorder amongst other deep-seated troubles.
Federal Reserve Money Printing
Inflation Pushed U.S. Economy to the Wall
By Terry Coxon - MarketOracle.co.uk
With few exceptions, all of the noble souls who chose a career in "public service" and who've advanced to be voting members of Congress are committed to chronic deficits, though they deny it. For political purposes, deficits work. The people whose wishes come true through the spending side of the deficit are happy and vote to reelect. The people on the borrowing side of the deficit aren't complaining, since they willingly buy the Treasury bonds and Treasury bills that fund the deficit. And taxpayers generally tolerate deficits as a lesser evil than a tax hike.
Get Ready for 'Hot' Inflation
BY GREGOR MACDONALD - FinancialSense.com
Ideological deflationists and inflationists alike find themselves both facing the same problem. The former still carry the torch for a vicious deflationary juggernaut sure to overpower the actions of the mightiest central banks on the planet. The latter keep expecting not merely a strong inflation but a breakout of hyperinflation.
Neither has occurred, and the question is, why not?
The answer is a 'cold' inflation, marked by a steady loss of purchasing power that has progressed through Western economies, not merely over the past few years but over the past decade. Moreover, perhaps it's also the case that complacency in the face of empirical data (heavily-manipulated, many would argue), support has grown up around ongoing "benign" inflation.
Why Bankruptcy Is the New Black
BY JOHN BUTLER - FinancialSense.com
OK, OK, I'm not exactly one to write about fashion, but fashion is about trends, and investment analysis is frequently about identifying trends early, if possible even before they properly begin, to assume the vanguard position prior to a dramatic outperformance of a given asset, or investment style. And so, in exercise of my modest accumulated wisdom and experience, I am predicting a surge in US corporate restructurings and bankruptcies, if not already in 2012, then in 2013. There is just too much corporate capital being wasted and consumed on bloated, inefficient balance sheets. Investors, normally fearful of bankruptcy, will soon learn that it is, in fact, their best friend. Once a corporation is on the edge, the sooner you push it over, the better. Free up that capital, re-deploy it, run it lean and mean and, when the time is right, leverage it up and score the big returns. How best to invest for a world in which bankruptcy makes the front page of Vogue? Read on.
Keiser Report: Vicious Circle of Bankster Huddles (E277)
In this episode, Max Keiser and co-host, Stacy Herbert discuss huddles and cuddles with the Goombahs of Wall Street and the technical violations that cannot be called by name. In the second half of the show Max talks to Rolling Stone journalist, Matt Taibbi, about the Wall Street mafia, their small and big time rackets and the process of writing these crime stories for a wide audience.
German tempers boil over back-door euro rescues Controversy is raging in Germany over soaring "payments" by the Bundesbank to shore up Europe's monetary system and cope with a tidal wave of capital flight from southern Europe.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Professor Hans-Werner Sinn, head of Germany's IFO Institute, said German taxpayers are facing a dangerous rise in credit risk from a plethora of bail-out schemes. "The euro-system is near explosion," he told Austria's Economics Academy on Thursday.
Dr Sinn said Germany is on the hook for much of the €2.1 trillion (£1.72 trillion) in rescue measures for EMU debtors - often by the back-door - that will saddle Germans with ruinous losses one day.
IMF chief Christine Lagarde in last-ditch struggle to raise funds Fresh fears emerge that eruption of financial crisis will leave International Monetary Fund short of emergency cash
By Larry Elliott in Washington - Guardian.co.uk
Christine Lagarde is involved in a struggle to raise funds for the International Monetary Fund amid fears that a fresh eruption of the global financial crisis will leave the organisation short of emergency cash.
The fund's managing director was lobbying hard for Britain and other developed nations that have yet to pledge money to build a bigger firewall to provide more than $400bn (£250bn) in fresh resources.
China hints at new monetary easing
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — China could be readying changes to pump up bank lending, with a state-media report late Wednesday indicating a possible cut to banks' required reserves, and with some analysts noting a downturn in money-supply growth.
Beijing wants to ease banks' required reserve ratios in an effort to boost liquidity, the Xinhua news agency cited an unnamed official with the People's Bank of China (PBOC) as saying.
Temper Your Optimism, Says the IMF
By Clive Crook - TheAtlantic.com
Where I am, not many people need that advice.
I traveled to Madrid yesterday, partly to help run a seminar that the Aspen Institute has put together this weekend on the future of capitalism. I don't know whether the timing for the event is good or bad. Spain has 23% unemployment (the youth unemployment rate is 50%) and its output is still contracting. It's also the new focus of Europe's debt-crisis anxieties. It's the fourth-biggest economy in the euro area, so if it's allowed to go the way of Greece it will overwhelm the EU's inadequate financial defenses. In one way our subject couldn't be more topical--but it's hard to look very far ahead when the ceiling's falling in.
Economists: Sluggish recovery here to stay
By Annalyn Censky - Money.CNN.com
NEW YORK (CNNMoney) -- The recovery is still chugging along at a sluggish pace, and unfortunately, it looks like it may stay that way for a while.
Economists surveyed by CNNMoney predict the unemployment rate will slip to 8% by the end of the year, not much of an improvement from thecurrent 8.2% rate.
It's like "running in place," said Lynn Reaser, chief economist at Point Loma Nazarene University. The unemployment rate, which only counts people who have looked for jobs in the last four weeks, recently fell as people dropped out of the labor force.
Program for rural homebuyers is nearly broke Agriculture Dept. loans aim to keep buyers
from moving to bigger cities
By Steve Karnowski - AP - MSNBC.com
MINNEAPOLIS — A federal loan program that has helped hundreds of thousands of Americans buy homes in rural areas is about to run out of money, potentially crippling the real estate market in many small communities.
Since last fall, the loans from the Department of Agriculture have fueled much of the real estate business in some parts of the country. Real estate agents are pleading with Congress to find a way to keep the money flowing until more funding becomes available later in the year.
Obama unveils new help for unemployed
By Tami Luhby - Money.CNN.com
Some states could soon be allowed to use unemployment funds to subsidize on-the-job training and other re-employment programs.
The Obama administration Thursday launched the effort, which will permit up to 10 states to use administrative funds or their trust funds to implement pilot programs that expedite the return of the unemployed to work.
The initiative is a key part of the president's effort to overhaul the unemployment system. It is part of a series of changes Congress approved as part of the payroll tax agreement in February.
CEO pay is 380 times average worker's - AFL-CIO
WASHINGTON (CNNMoney) -- Chief executives at some of the nation's largest companies earned an average of $12.9 million in total pay last year -- 380 times more than a typical American worker, according to the AFL-CIO.
Average CEO pay rose 14% compared to 2010, when they earned $11.4 million on average, according to the union group.
The AFL-CIO each year highlights the pay disparity between workers and chief executives from companies that are part of Standard & Poor's 500 stock index.
The Death Spiral of America's Big Law Firms How some of America's top law firms devoured profits before the Great Recession, got too fat, and are now suffering the consequences
By Jordan Weissmann - TheAtlantic.com
This month, the legal industry has been fixated on the gathering storm clouds around Dewey & LeBoeuf, a high-end international law firm based out of New York. The issue is not so much whether Dewey is in trouble -- that much is obvious -- but whether the firm is in the midst of an accelerating death spiral. About 20 percent of its partners have defected to other firms this year. More may be jumping ship. Former partners are speculating about whether the firm will merely shrink, or be "busted up into a bunch of little pieces."
Sprint hit with $300 million tax fraud lawsuit
By Julianne Pepitone - Money.CNN.com
NEW YORK (CNNMoney) -- New York's attorney general filed a tax fraud lawsuit against Sprint Nextel on Thursday, accusing the wireless carrier of intentionally underpaying sales tax in the state for seven years.
Starting in 2005, Sprint stopped collecting and paying New York sales tax on around 25% of the revenue from its fixed-price monthly cell phone plans, according to New York Attorney General Eric Schneiderman.
Got bad credit? Card issuers want you again
By Blake Ellis - Money.CNN.com
NEW YORK (CNNMoney) -- Credit card issuers are ramping up lending to consumers with poor credit. But borrowers beware: The terms aren't always going to be good.
Lending to subprime consumers -- typically those with a FICO credit score of below 660 -- climbed 41% last year, with banks issuing 1.1 million new credit cards to riskier consumers, a four-year high, according to a recent report from credit reporting agency Equifax.
Credit limits on new subprime credit cards also grew, climbing 55% from 2010 to 2011.
Government of waste and lawlessness Washington repudiates the Constitution every day
By Andrew P. Napolitano - WashingtonTimes.com
What can we learn from allegations against a half-dozen supervisors in the General Services Administration (GSA) about wasting - and perhaps stealing - taxpayer dollars on foolishness in Las Vegas and against a dozen Secret Service agents about dangerously procuring prostitutes in Cartagena, Colombia, while there to prepare for a visit by the president?
If the allegations are true - and they seem to be - the behavior of those federal workers reflects a view hardly consistent with the ideas of limited government and public trust. The United States is the only nation in history founded on the principle that people voluntarily give up some personal freedom in order to form a central government of limited powers and for limited purposes. Those purposes, according to the Constitution, consist primarily of the maintenance of personal freedom, natural rights and property rights, civil liberties and commercial liberties.
States asked to apply for unemployment test plan
By JIM KUHNHENN - AP - Yahoo News
WASHINGTON (AP) — The Obama administration is looking for states that will experiment withunemployment insurance programs by letting people test a job while still receiving benefits.
The plan is a key feature of a payroll tax cut package that President Barack Obama negotiated withcongressional Republicans in February.
The Labor Department will open the application process Thursday for 10 model projects across the country. Any state can apply for the "Bridge to Work" program.
The Sea Change:
Obama's Confirmed Forgeries Are Not Going Away
By Monte Kuligowski - AmericanThinker.com
For several years, an Orwellian-type fear of being "marginalized" held reporters and pundits back from questioning Barack Obama's eligibility to hold the office of the presidency. To raise an eyebrow at the bizarre secrecy of Obama was off-limits. To question whether the historic definition of "natural born citizen" applied to Obama was taboo.
The era of fear, however, is happily winding down. It will take some time for this realization to fully take hold. But make no mistake: the tables have turned.
Like it or not, the ground has shifted, and it cannot shift back. The evidence of Obama's forgeries is not going away.
NUGENT REVEALS DATE OF HIS SECRET SERVICE
INTERVIEW IN EPIC GLENN BECK INTERVIEW:
'WE'RE GOING TO HAVE A LITTLE BBQ
Congressman Tom Tancredo
Rock star and gun enthusiast Ted Nugent appeared on Glenn Beck's radio show this morning. The outspoken musician discussed the heat he's been taking over controversial comments he made at the NRA convention this past weekend. Additionally, he talked about his impending meeting with the Secret Service as a result of his words and commented on the "sub-human punk" label he gave DNC Chair Debbie Wasserman Schultz.
"It's a world gone berzerko," Nugent said when summing up the days' recent events." If it wasn't for the federal government my life would be perfect. Perfect. I'm not kidding…"
Nugent says had "solid" meeting with Secret Service
By Steve Olafson
(Reuters) - Musician and gun-rights advocate Ted Nugent said on Thursday he had a positive meeting with U.S. Secret Service agents investigating his recent criticism of President Barack Obama, and the agency confirmed the issue had been resolved.
Nugent, who told NRA supporters in St. Louis last week that he would be "dead or in jail" next year if Obama was reelected, said in a statement that he had "met with two fine, professional Secret Service agents" in Oklahoma.
Ted Nugent = Hilary Rosen
By Jennifer Harper - WashingtonTimes.com
That's the equation, say progressive bloggers who are annoyed that the news media has yet to turn its full frenzied attention to recent remarks made by rock icon and firearms aficionado Ted Nugent at the National Rifle Association's annual convention.
Among other things, Mr. Nugent — who has officially endorsed Republican hopeful Mitt Romney — characterized Obama administration officials as "vile, evil and America-hating" and "criminals," later predicting that he'd be "dead or in jail by this time next year," should President Obama win re-election.
CNN Journalist Calls for Throwing Ted Nugent in Prison
By Kurt Nimmo - Infowars.com
LZ Granderson, a regular CNN contributor, has called for locking up Ted Nugent following his public criticism of Obama.
"Not because he doesn't like Barack Obama but because he got up in front of a group of people and insinuated he would attempt to assassinate Obama if he's re-elected. Or let's put it this way: A man with a truckload of guns has threatened the life of our president while the country's at war," he writes.
"I believe there are more instances of abridgment of the freedom of the people by gradual and silent encroachments than violent and sudden usurpations." — James Madison at the Virginia Ratification debates.
When one analyzes Madison's logic, it seems prophetic, especially if one applies it to executive orders.
History of the Executive Order
In a February 21, 2001 article, The Use and Abuse of Executive Orders and Other Presidential Directives, Todd Gaziano, Director, Center for Legal & Judicial Studies at the Heritage Foundation, illustrated the courses of action leading to the executive order and the legal ramifications.
Gun industry's economic impact skyrockets during Obama years
By Tim Devaney-The Washington Times
The economic impact of the firearms industry is up 66 percent since the beginning of the Great Recession, providing an unexpected shot in the arm for the economy, according to a new study.
The National Shooting Sports Foundation claims that the economic impact of firearm sales — a figure that includes jobs. taxes and sales — hit $31 billion in 2011, up from $19 billion in 2008.
Jobs in the firearms business jumped 30 percent from 2008 to 2011, when the industry employed 98,750.
Obama's Secretive Keystone XL Decision
By Ken Blackwell - patriotPost.us
The oppressive monster known as the Environmental Protection Agency (EPA) is not just killing jobs these days -- it is intentionally avoiding transparency that may shed light on the political motivations behind the agency's actions.
Started in 1970 by President Richard Nixon, the EPA was a small agency that combined several anti-pollution and clean water agencies into one agency with 4,084 employees and a $1 billion budget. Today, it has 17,000 employees and has evolved from its narrow focus into an unconstitutional, blunt instrument with vast powers that the Obama Administration wields to promote a radical political agenda that is destroying prosperity and ruining lives.
Firm submits revised route for Keystone XL Altered pipeline plan would avoid Sandhills region
By Grant Schulte - AP - WashingtonTimes.com
LINCOLN, NEB. — Officials unveiled a new preferred route Thursday for the Nebraska portion of the stalled Keystone XL oil pipeline that avoids the state's groundwater-rich Sandhills region and ratchets up the political pressure on President Obama over the project's future.
The proposed route would veer east around the Sandhills before looping back to the original route. Developer TransCanada has said the reroute adds about 100 miles to the original 1,700-mile project that would carry oil fromCanada to the Gulf Coast.
White House raises concerns over CISPA bill Information sharing without privacy safeguards
is a problem, National Security Council spokeswoman says
By Jaikumar Vijayan - Computerworld.com
Computerworld - The White House joined the growing chorus of voices expressing concern over the proposed Cyber Intelligence Sharing and Protection Act (CISPA) legislation that is scheduled for a vote in the U.S. House of Representatives next week.
The bill would allow Internet service providers and Internet companies such as Google and Facebook to collect and share a wide range of user data with the government. Privacy and civil rights groups have blasted the bill, saying it would dismantle privacy protections and enable unprecedented surveillance of online activities under the pretext of cybersecurity.
MIT and others launch a tech education revolution Four programs deliver traditional --
and nontraditional -- education options for techies
By Patrick Thibodeau - Computerworld.com
Computerworld - MIT's free online course, 6.002x: Circuits and Electronics, is a hit. The course, which began in March and ends on June 8, prompted 120,000 registrations.
This online course is no different than the circuits and electronics course taught to undergrads on campus, said Anant Agarwal, director of MIT's Computer Science and Artificial Intelligence Laboratory, who leads 6.002x. The class is part of an open education program called MITx. Discussing the curriculum of MITx, Agarwal said, "It's not watered down; it's the same thing -- it's as hard" as the classes all MIT students take.
The Jig Is Up: Time to Get Past Facebook
and Invent a New Future After five years pursuing the social-local-mobile dream,
we need a fresh paradigm for technology startups.
By Alexis Madrigal - TheAtlantic.com
We're there. The future that visionaries imagined in the late 1990s of phones in our pockets and high-speed Internet in the air: Well, we're living in it.
"The third generation of data and voice communications -- the convergence of mobile phones and the Internet, high-speed wireless data access, intelligent networks, and pervasive computing -- will shape how we work, shop, pay bills, flirt, keep appointments, conduct wars, keep up with our children, and write poetry in the next century."
Android malware writers exploit Instagram craze
to distribute SMS Trojan horse Fake Instagram websites distribute Android Trojan horse that sends SMS messages to premium-rate numbers
By Lucian Constantin - Computerworld.com
IDG News Service - In an attempt to take advantage of the popularity of free photo-sharing app Instagram among smartphone users, malware writers have created fake Instagram websites to distribute Android Trojan horses, according to security researchers from antivirus firms Sophos and Trend Micro.
Originally developed for Apple's iOS devices, Instagram allows smartphone users to take photos, apply various digital filters to them and share the resulting images on social networking websites. There are over 30 million registered Instagram accounts as of April 2012, according to its creators.
Ice age coming soon... ? "Coldest May in 100 years", forecasters predict Britain could be facing the coldest May for 100 years, with snow, bitter winds and freezing temperatures putting summer on hold.
Telegraph.co.uk
The winter weather follows a wet start to April, with the threat of floods and storms to come over the next few days.
The Met Office has issued weather warnings for the South West, London, South East, Wales and the West of England due to flooding on roads and 60mph winds.
Hail storms are expected across the country and it is feared windows could be broken by giant hail, up to 1cm thick. In the north and Scotland temperatures could fall to -2C.
RFID Micro-Chip Confirmed
Brian Williams, Ron Paul, Paul Begley
Mark of the Beast? How Close? March 23, 2013 or 2017? NBC Brian Williams, Fox News Megan Kelly, Presidential Candidate Ron Paul, Evangelist Perry Stone, and Pastor Paul Begley, Hal Linsey, and many others have confirmed the technology for the mark of the beast is here. Where is the Beast?
Mandatory 'Big Brother' Black Boxes
In All New Cars From 2015 Provision is part of controversial MAP-21 bill
expected to pass House
By Paul Joseph Watson - Infowars.com
A bill already passed by the Senate and set to be rubber stamped by the House would make it mandatory for all new cars in the United States to be fitted with black box data recorders from 2015 onwards.
Section 31406 of Senate Bill 1813 (known as MAP-21), calls for "Mandatory Event Data Recorders" to be installed in all new automobiles and legislates for civil penalties to be imposed against individuals for failing to do so.
SOCIALIST PARTY OF AMERICA RELEASES THE NAMES
OF 70 DEMOCRAT MEMBERS OF CONGRESS
WHO ARE MEMBERS OF THEIR CAUCUS
Congressman Tom Tancredo - December, 2011
"This should come as a surprise to absolutely no one. The radical Marxist-progressives (communists) took control of the democrat party some time ago. They've only become more emboldened with the election of Barack Obama, who was raised as a communist from birth.
With their new found leader, Barack Obama, the Socialist Party of America felt secure enough to announce the names of 70 democrats in Congress that belong to their caucus."
The real scandals of Obama's Latin America summit The secret service prostitution imbroglio obscures the Obama administration backing of broken policies like the 'war on drugs'
By Amy Goodman - Guardian.co.uk
President Barack Obama's re-election campaign launched its first Spanish-language ads this week, just after returning from the Summit of the Americas. He spent three days in Colombia, longer than any president in US history. The trip was marred, however, by a prostitution scandal involving the US military and secret service. General Martin Dempsey, chair of the US joint chiefs of staff, said: "We let the boss down, because nobody's talking about what went on in Colombia other than this incident."
Dempsey is right. It also served as a metaphor for the US government's ongoing treatment of Latin America.
Not So Secret Service
By Cal Thomas - PatriotPost.us
In the 1962 Howard Lindsay-Russel Crouse-Irving Berlin Broadway musical, "Mr. President," one of the songs in the production is titled "The Secret Service," which begins, "the Secret Service makes me nervous..."
If allegations are true that at least 11 Secret Service agents and several members of the U.S. military consorted with prostitutes prior to President Obama's arrival in Cartagena, Colombia, it should make a lot of people nervous. Rep. Darrell Issa (R-CA), chairman of the House Oversight and Government Reform Committee, has pledged that lawmakers will be "looking over the shoulder" of the inspector general as the Department of Homeland Security office investigates the allegations. The accused have been placed on administrative leave and their security clearances have been revoked.
Judging, the Cosmic Way
By George Will - PatriotPost.us
WASHINGTON -- Judge J. Harvie Wilkinson III, a Reagan appointee to the 4th U.S. Circuit Court of Appeals, is a courtly Virginian who combines a manner as soft as a Shenandoah breeze with a keen intellect. His disapproval of much current thinking about how the Constitution should be construed is explained in his spirited new book -- slender and sharp as a stiletto -- "Cosmic Constitutional Theory: Why Americans Are Losing Their Inalienable Right to Self-Governance" (Oxford).
A "cosmic theory," Wilkinson says, is any theory purporting to do for constitutional questions what Freud and Einstein tried to do concerning human behavior and the universe, respectively -- provide comprehensive and final answers. The three jurisprudential theories Wilkinson criticizes are the "living Constitution," "originalism" and "constitutional pragmatism." Each, he says, abets judicial hubris, leading to judicial "activism."
Is North Korea Losing China?
By Christopher Hill - Project-Syndicate.org
DENVER – For most countries, the spectacular failure of a rocket launch would mean a return to the drawing board, or at least some introspection aimed at figuring out what went wrong. But that does not appear to be the case in North Korea, where the flubbed launch of its long-range Unha-3 rocket has merely set the stage for a new level of defiance: the detonation of yet another nuclear device, perhaps bigger than in the past.
The world, it seems, must be shown that North Korean scientists, despite their dearth of success in producing food, have mastered how to produce a weapon of mass destruction. And such a demonstration might well be needed to confer legitimacy on the newly installed third-generation leader, Kim Jong-un, a boy-dictator whose only accomplishment to date has been to prove on television that he can ride a horse, and that he appears to know how to read.
Syria: Turkey threatens to invoke Nato's self-defence article Turkey has resurrected the prospect of western military intervention in the Syrian crisis, threatening to invoke NATO'S self-defence mechanisms over violations of its territory by Assad regime troops.
By Richard Spencer - Telegraph.co.uk
Recep Tayyip Erdogan, the Turkish prime minister, repeated calls for United Nations action against Syria, and went on to refer to Article 5 of the Nato treaty. That calls an attack on one Nato member like Turkey an attack on all members.
Invoking the treaty would allow Nato members to take military action against Syria legally without a UN security council resolution. Article 5 has only been invoked on one previous occasion – in the action taken against Afghanistan after the September 11 attacks.
Iran army ready for action on disputed Gulf island
By NASSER KARIMI - AP - Yahoo News
TEHRAN, Iran (AP) — Iran's ground forces commander warned that should diplomacy fail, the military is ready for action over a disputed Gulf island controlled by Iran but also claimed by theUnited Arab Emirates, state TV reported Thursday.
Gen. Ahmad Reza Pourdastan said Iranian forces are capable of confronting any offender against Iran's sovereignty over the strategic Abu Musa island in the Persian Gulf
* * * * *
Iran's Last Chance?
By Javier Solana - Project-Syndicate.org
MADRID – The latest round of negotiations on Iran's nuclear program between Iran and the so-called "5+1" group (the United Nations Security Council's five permanent members – the United States, the United Kingdom, Russia, France, and China – plus Germany) has now begun. Following more than a year of deadlock, after negotiations in January 2011 led nowhere, this dialogue is for many the last chance to find a peaceful solution to a nearly decade-long conflict (in which I participated closely from 2006 to 2009 as the West's main negotiator with Iran).
The objective of the talks, chaired by the European Union's foreign-policy chief, Catherine Ashton, and Iran's chief negotiator, Saeed Jalili, is still to persuade Iran to halt uranium enrichment and to comply with Security Council resolutions and its obligations under the Nuclear Non-Proliferation Treaty. But several factors heighten the current negotiations' strategic importance.
* * * * * Video Exposing NWO Agenda * * * * *
From a decidedly New Age viewpoint, this video explains plan of dominance and control by a New World Order, exposing the major players and what they have already done, are doing, and plan to do on all social, cultural, economic, and political fronts together with their global depopulation agenda.
It's informative even if you hold a Biblical or Islamic point of view. What we ALL need most is reliable information, knowledge, understanding, and the wisdom to know what to do with it.
Unfortunately, Christians, Jews, and Muslims are ALL more likely to fall in lock-step with a one-world religion designed to deceive and betray people, and many will ultimately support a New World Order through religious deception.
The new agers will NOT support a one-world religion or follow a religious leader so they are on to something that would serve to defeat or delay the agenda. On the other hand, keep in mind that the new agers are naive when it comes to understanding that the ultimate source and origin of the global agenda is supernatural evil in higher places manifesting on the earth in our political and governmental institutions.
Consider the practical solutions offered in the video... without prejudice. Some of the proposed solutions may help preserve individual freedoms, but beware of the empty 'spirituality' being promoted, devoid of God, beyond and above one's self.
* * * * * * * * * *
THRIVE: What On Earth Will It Take?
THRIVE is an unconventional documentary that lifts the veil on what's REALLY going on in our world by following the money upstream -- uncovering the global consolidation of power in nearly every aspect of our lives. Weaving together breakthroughs in science, consciousness and activism, THRIVE offers real solutions, empowering us with unprecedented and bold strategies for reclaiming our lives and our future.
Details Of The $291 Trillion In Derivatives
To Which American Taxpayers Are Exposed
By Avery Goodman - SeekingAlpha.com
The entire US GDP is less than $15 trillion each year. The gross notional amount of derivatives issued in the USA is more than $291 trillion. Does that sound like a lot? Apologists for derivatives dealers don't like it when we talk about derivatives in terms of the notional totals. Large numbers, like these, discussed publicly, frighten too many people. According to the apologists, gross "notional" is misleading, because it does not include "hedges," offsets and the limits on interest rate risk.
In fact, the total amount of derivatives cannot be accurately presented in any other form but gross notional obligations. The risk to society cannot be judged in any other way. That's why the FDIC, US Comptroller of the Currency and the Bank for International Settlement (BIS) all use gross notional.
How Long Before America Hits the Wall?
BY TERRY COXON - FinancialSense.com
Decades of manipulation by the Federal Reserve (through its creation of paper money) and by Congress (through its taxing and spending) have pushed the US economy into a circumstance that can't be sustained but from which there is no graceful exit.
With few exceptions, all of the noble souls who chose a career in "public service" and who've advanced to be voting members of Congress are committed to chronic deficits, though they deny it. For political purposes, deficits work. The people whose wishes come true through the spending side of the deficit are happy and vote to reelect. The people on the borrowing side of the deficit aren't complaining, since they willingly buy the Treasury bonds and Treasury bills that fund the deficit. And taxpayers generally tolerate deficits as a lesser evil than a tax hike.
New Suits Over Do-It-Yourself IRAs
By KELLY GREENE - WSJ.com
A wave of blowups in do-it-yourself individual retirement accounts has prompted some investors to go after firms that handle the paperwork.
Two custodians of self-directed IRAs were sued in U.S. District Court in Los Angeles on Monday by three investors who allege that the companies knew the investors' money had been stolen by scam artists yet sent them reports showing their nest eggs to be intact.
U.S. dollar gains on most rival currencies Sterling up; Japanese yen slides
after comments from Bank of Japan
By Myra P. Saefong and William L. Watts, MarketWatch
SAN FRANCISCO (MarketWatch) — The U.S. dollar mostly gained ground Wednesday, but it declined against the British pound after the Bank of England's staunchest quantitative-easing advocate dropped a call to expand the central bank's bond-buying program.
The ICE dollar index, which tracks the greenback's performance against a basket of six currencies, rose to 79.589 from 79.561 late Tuesday.
Ditching the Dollar
Marin Katusa - SilverBearCafe.com
There's a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country's importance in the world: the demise of the US dollar as the world's reserve currency.
For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar's valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon.
China allows banks to short sell dollars
(Reuters) - Chinese banks will be allowed to short sell dollars from April 16 onwards, the State Administration of Foreign Exchange (SAFE) said on Monday.
The change comes into effect to coincide with the widening of the yuan's daily trading band to 1 percent, a landmark reform in the process to allow market forces a greater role in setting the value of the tightly-controlled Chinese currency that was announced on Saturday.
Central Banks Favor Gold In Response to IMF Warning
BY MARK O'BYRNE - FinancialSense.com
Gold fell $1.50 or 0.09% in New York and closed relatively unchanged at $1,650.20/oz yesterday. Gold traded sideways prior to gradually creeping up in late Asian trading. It then gave up those gains in European trading and is nearly unchanged from yesterday's close in New York.
Gold remained relatively unchanged from yesterday as Spain's debt auction eased some worries about the eurozone debt crisis. Although this is another temporary respite as the euro may remain under pressure ahead of Madrid's long term debt sale later this week.
U.S. Editor Of The Economist:
'Paper Dollar' And 'Paper Euro' Will 'Debase' In A 'Big Way'
SeekingAlpha.com
In volatile trade in New York yesterday, gold rose sharply prior to falling and ended $4.40 lower or 0.27% and closed at $1,651.70/oz. Gold initially took a dip in Asia and then recovered losses by the time European trading opened and has ticked higher.
Gold's safe haven appeal is gradually rekindling as concerns deepen about Spain and the other periphery eurozone economies and a realisation that the eurozone debt crisis is far from over.
U.S. bows to Wall Street on derivatives CFTC, SEC votes on capital requirements for swaps firms
By Ronald D. Orol, MarketWatch
WASHINGTON (MarketWatch) — Under pressure from Wall Street, energy companies and lawmakers on Capitol Hill, the nation's commodity futures and securities regulators Wednesday approved rules that would require a smaller group of derivatives traders to set aside capital than they had originally considered.
At issue are rules the Commodity Futures Trading Commission and the Securities and Exchange Commission on identifying what traders will be designated as "swap dealers" and required to set aside more capital. The rules is required by the Dodd-Frank Act, written in response to the financial crisis of 2008.
The Trouble with Money
Chris Martenson, PhD - SilverBearCafe.com
A Broken Narrative
Recently I was asked by a high school teacher if I had any ideas about why students today seem so apathetic when it comes to engaging with the world around them. I waggishly responded, "Probably because they're smart."
In my opinion, we're asking our young adults to step into a story that doesn't make any sense.
Sure, we can grow the earth's population to 9 billion (and probably will), and sure, we can extract our natural gas and oil resources as fast as possible, and sure, we can continue to pile on official debts at a staggering pace — but why are we doing all this? Even more troubling, what do we say to our youth when they ask what role they should play in this story — a story with a plot line they didn't get to write?
Austerity is not the problem in the eurozone – the euro is
By Andrew Lilico - Telegraph.co.uk
There is what seems to me to be a false debate about austerity in certain parts of Europe at the moment. Commentators ask: "If growth is very slow, is austerity self-defeating?" The thought is that by cutting back on spending and deficits, governments in Spain, Ireland, Portugal and elsewhere might be causing their economies to shrink, with the result that debt to GDP ratios rise – not because deficits are large but because GDP falls.
Spain, the G20 Economy that Resembles an Emerging Market
By Javier E. David - WSJ.com
In theory, higher yields are supposed to lure investors with the prospect of meaty returns. Yet in Spain's case, Andrew Balls, head of European investment at bond giant PIMCO sees the opposite effect in play.
"Spain is like an emerging market economy borrowing in a foreign currency; its high yields drive people out rather than drawing them in," Balls says.
Because of high unemployment, sluggish growth and a large debt overhang, Balls says the problem facing euro zone's fourth largest economy is less about interest rate risk than credit risk – which is sending investors stampeding to the exits. "If [investors] want credit risk, there are better alternatives than Spain or Italy."
Mario Draghi, The Rain In Spain,
And The Future Of European Banking
By Martin Lowry - SeekingAlpha.com
Now it is "all Spain, all the time," just as it was all Greece, then all Italy, then all Greece again.
As a consequence of "all Spain, all the time," my recommendation of a basket of French and German banks -- Credit Agricole (CRARY.PK), Societe Generale (SCGLY.PK) and Deutsche Bank (DB) -- a few weeks ago that looked quite promising are now getting pummeled by the markets.
Should I get out of that bet and advise readers to do so as well? Or is there reason to think that what is happening in Spain likely will not bring down major French and German banks?
EU gets behind Spain on Argentina oil grab
BY NIKOLAJ NIELSEN - EUObserver.com
BRUSSELS - The European Commission has sharply criticised Argentina's plan to nationalise Spanish energy firm Repsol YPF, with EU foreign ministers to discuss the issue next week.
"I am seriously disappointed about yesterday's announcement. We expect Argentina's authorities to uphold their international commitments and obligations in particular with those resulting in bilateral agreements on protection of investments with Spain," EU commission President Barroso told reporters on Tuesday(17 April) in Brussels.
Argentine President Cristina Fernandez de Kirchner on Monday announced the takeover of the Spanish-owned firm, one of the largest in South America.
Spain won't need a bailout - Eurogroup's Juncker
(Reuters) - Spain will not need financial aid from the euro zone because its fiscal consolidation is impressive and its structural reforms are on track, the chairman of euro zone finance ministers Jean-Claude Juncker said on Tuesday.
Spanish 10-year borrowing costs on Tuesday dipped back below the 6 percent level hit on the secondary market on investor concern that a recession in the Spanish economy would reduce the country's ability to service its debt.
Political changes underway in Europe... Juncker confirms he to quit as Eurogroup chief
(Reuters) - Luxembourg Prime Minister Jean-Claude Juncker has reaffirmed his plan to stand down as head of the Eurogroup assembly of euro zonefinance ministers in mid-2012, according to the pre-release of an interview by German weekly Die Zeit.
Asked if he would give up the job, Juncker was quoted by Die Zeit as saying: "Yes, this is still the state of affairs".
Citing a heavy workload and health issues, Juncker has already said he does not want to remain in a post he has held for more than seven years, but there has been talk he may be asked to stay on while the sovereign debt crisis persists.
Spain banks' bad loans highest since Oct '94
(Reuters) - Spanish banks' bad loans rose to their highest level since October 1994 in February, to 8.2 percent of their credit portfolios, Bank of Spain data showed on Wednesday, as the sector continues to battle sliding house prices and a looming recession.
Banks are facing a new wave of loan defaults as an economic crisis deepens and analysts say some may not survive as the government implements sweeping budget cuts that will only add to Spanish households' problems with repaying debt.
"Not if, but when" for Spanish bailout, experts believe
By Luke Baker
(Reuters) - Economic experts watching Spain don't know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multi-billion euro bailout for its banks, and perhaps even for the state itself.
Prime Minister Mariano Rajoy has repeatedly said Spain doesn't need or want an international bailout, and the European Union, which along with the IMF has already rescued Greece, Ireland and Portugal, also dismisses such talk.
Spain has few ways to pressure Argentina over YPF
By Fiona Ortiz
(Reuters) - Spain has threatened to retaliate againstArgentina for nationalizing a Spanish energy firm, but Madrid will find it hard to put real pressure on a maverick nation that has been shut out of world debt markets and has ignored international fines in previous disputes.
Argentine President Cristina Fernandez said this week she would fulfill a life-long dream and solve her country's energy shortage by seizing control of its biggest oil company, YPF, a subsidiary of Spain's Repsol.
Was Argentina racing Sinopec for YPF control? Sinopec had planned to buy YPF, report says
By Chris Oliver
HONG KONG (MarketWatch) -- China Petroleum & Chemical Corp., better known as Sinopec, was in talks to purchase a controlling stake in Argentine oil company YPF SA from Spanish group Repsol YPF SA before Argentina moved ahead with plans to nationalize the company, according to a report Wednesday in the Financial Times. Talks that would have seen the Chinese state-owned energy group pay in excess of $10 billion to acquire Repsol's 57% stake in YPF broke down after Buenos Aires announced its intent to take the company back into state control, according to the report, which cited two people familiar with what it described as secret talks.
Spain wants EU complaint with WTO on Argentina
(Reuters) - Spain will ask the European Union to file a complaint with the World Trade Organization against Argentina for seizing control of energy company YPF, which is majority owned by Repsol, a high-ranking government source said on Wednesday.
The source did not wish to be named and gave no further details.
Madrid has threatened economic and diplomatic "consequences" for Argentine President Cristina Fernandez's decision to nationalize 51 percent of YPF owned by Spanish oil major Repsol.
Why a visit to the eurozone doctor
won't relieve the pain in Spain So much for the idea that the euro crisis is over! Last week it resurfaced again – with Spain now first in the firing line. How serious is the Spanish problem?
By Roger Bootle - Telegraph.co.uk
Although they share some things in common, each vulnerable euro member's plight is slightly different. The Spanish economy did not get where it is today through a great splurge in public spending and borrowing, as happened in Greece. Indeed, in 2007, the Spanish government's budget was in surplus.
Admittedly, last year it was in deficit to the tune of 8pc of GDP. But this was a response to the collapse of the economy, not the cause of it.
What did for Spain was the mother and father of a boom in private spending and borrowing, much of it connected with a bubble in the property market. In this sense, the country that Spain most resembles is Ireland.
Fitch doubts Dutch AAA as property slump reaches 'coma' Fitch Ratings has issued the clearest warning to date that Holland faces losing its AAA rating if it fails to deliver austerity cuts or lets political conflict intrude on economic management.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"The Dutch are on the edge of a negative rating action," said Chris Pryce, Fitch's expert on the Netherlands. The first move is likely to be a switch from stable to negative outlook rather than a full downgrade.
"We will hold a rating committee meeting in June. They run risks if they keep letting debt rise: a cautious approach would be advisable," he told the Telegraph.
Chinese are buying US companies on our nickel
$7 million was FEDERAL GRANT MONEY
Top bid on Peoria [AZ] solar power plant is $250,000
by Ryan Randazzo - The Republic
A Chinese company placed the winning bid of $250,000 for the bankrupt solar power plant in Peoria during an online auction Tuesday, getting a steep discount to its building cost.
The power plant received a $7 million federal grant in 2010, according to Energy Department records. Solar projects were eligible for grants of as much as 30 percent of their capital cost, which implies the plant cost as much as $23 million.
Chris Whalen: "The Fed let the real economy go to hell"
[Dec 5, 2010]
Financial analyst Chris Whalen, who monitors risk in the U.S. financial system, was on MSNBC's Dylan Ratigan show yesterday, commenting on the Federal Reserve's release of where they spent the trillions of dollars to save the financial system. Much of the money went to financial institutions who give no thanks to the U.S. taxpayer now.
Federal Reserve Officials
Leave For Wall Street With Privileged Info
By Ryan Grim and Ariel Edwards-Levy - HuffingtonPost.com
WASHINGTON -- The Federal Reserve may be making an effort to open up some of its famously opaque decision making, but the newfound interest in transparency doesn't extend to sharing records of meetings that happened years ago.
The Huffington Post and MSNBC's "Dylan Ratigan Show" filed Freedom of Information Act requests in January to obtain the minutes of Federal Open Market Committee meetings from 2007 to 2010. That month, the Fed had released the 2006 minutes of the confidential committee, which essentially sets national monetary policy.
Jim Rickards on the Goals of Federal Reserve Policy:
Inflation and Financial Repression Reward savers and retirees−Don't penalize them [audio]
from transcript of interview:
Well, the Fed has had this zero interest rate policy in place since 2009. It took them a while to get there; they started cutting rates in 2007 and actually got down to zero by December 2008; so using 2009 as a starting point, 2009, 2010, 2011, now into 2012, so it's over three years. And the Fed is telling us they intend to keep it in place for three more years: 2012, 2013, into 2014. So if they stick to that, that's going to be six years of zero interest rates. That's completely unprecedented. We've never seen anything like that before in the history of monetary policy in the United States, and it's not working. I mean unemployment is still high, the output gap is still large, growth is not back to trend, employment — that is, just the total number of people who have jobs, leaving aside percentages — is about where it was in 2000. We haven't really added any jobs net since 2000, over 12 years.
Obama tightens oil and gas drilling regulations
By Steve Hargreaves - Money.CNN.com
NEW YORK (CNNMoney) -- The Obama administration tightened regulations on the oil and gas industry Wednesday, requiring drillers to capture emissions of certain air pollutants from new wells.
But in a nod to industry concerns that the rules were being enacted too quickly, the Environmental Protection Agency said companies can burn the pollutants at the well head until the start of 2015, when enough equipment is expected to be available to capture the pollution.
U.S. factory decline suggests economy losing steam
By Jason Lange
(Reuters) - Output at U.S. factories slipped in March and builders started construction on fewer homes, offering cautionary signals for an economy that appeared to be gaining traction.
Manufacturing output slipped for the first time in four months, dropping 0.2 percent, the U.S. Federal Reserve said on Tuesday.
The decline dragged on overall industrial production which was unchanged and fell short of analysts' expectations.
Homebuilder Outlook Plunges, Reversing Spring Rebound
By: Diana Olick - CNBC.com
In a stark reversal during the heart of the spring housing market, confidence among the nation's homebuilders dropped in April to levels not seen since January.
An association index measuring sentiment fell three points, changing course after seven straight months of gains.
It now stands at twenty-five; fifty is the line between positive and negative sentiment.
Bottom-Bouncing Economy
By Greg Hunter - USAWatchdog.com
"Bottom-bouncing" is the term John Williams ofShadowstats.com uses consistently to describe the true state of the economy. The mainstream media would like you to believe that with every slight uptick in the economy, we have hit bottom and are in a so-called "recovery." The upticks are reported with wild enthusiasm, while the downticks are brushed over. The latest bad news for the economy came from the housing sector. CNBC reported Monday, "In a stark reversal during the heart of the spring housing market, confidence among the nation's homebuilders dropped in April to levels not seen since January. An association index measuring sentiment fell three points, changing course after seven straight months of gains. It now stands at twenty-five; fifty is the line between positive and negative sentiment. 'What we're seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September,' said National Association of Home Builders Chief Economist David Crowe in a release."
Fisker on ropes? Delaware plant 'absolutely empty'
By Jonathan Starkey/Wilmington (Del.) News Journal - USAToday.com
Fisker Automotive has laid off another dozen workers at the former General Motors plant in Delaware that it has been refitting with federal and state money to build a new sedan.
The layoffs, which occurred quietly Friday, come as California-based Fisker continues talks with the U.S. Energy Department to unfreeze loan money that could determine whether it ever builds a car at the plant. Meanwhile, the state continues to pay utility bills for the factory in hopes Fisker will still provide jobs there.
Pilot 'competition' effort saved Medicare $200 million
by Ricardo Alonso-Zaldivar - AP - AZCentral.com
WASHINGTON -- A yearlong experiment with competitive bidding for power wheelchairs, diabetic supplies and other personal medical equipment produced $200 million in savings for Medicare, and government officials said Wednesday they are expanding the pilot program in search of even greater dividends.
The nine-city crackdown targeting waste and fraud has drawn a strong protest from the medical supply industry, which is warning of shortages for people receiving Medicare benefits and economic hardship for small suppliers. But the shift to competitive bidding has led to few complaints from those in Medicare, according to a new government report.
America Won't Get Rich by Relying on the Permanent Poor
By Ben Shapiro - PatriotPost.us
America is a land of class mobility. That's what makes America a magnet destination for people all over the world: Come to America and make something of yourself. If you want great welfare benefits, try to bust into Europe; if you want to work for a living and get rich, come to the United States.
But for some Americans, there is no class mobility. There is a permanent economic underclass, and those who inhabit it have no ability to rise above their fiscal fate.
There is a reason for that: They make bad decisions.
Fake Conservatives As Dangerous To Freedom As Obama
By Brandon Smith - Alt-Market.com
If Americans are looking for anything in the dark clouds of political dust and powdered ash that choke our air and leave us feeling naked against the elements, it is but a simple moment of sincerity. It sounds like an easily attainable thing, and yet, we continue to gasp and clamor. The visible surface of our nation is so devoid of honest connection with our social voice that we have turned to a cynical form of loneliness. We have embraced a life without clarity, and been made wretchedly bitter, desperate for even the faintest taste of truth.
Duh!... Obama signals for 2012: It's all about the economy
By Nancy Benac - AP - WashingtonTimes.com
WASHINGTON (AP) — In an election season when the economy is king, the central debate between President Obama and GOP challenger Mitt Romney comes down to what is enough. Enough growth in the economy. Enough job creation. Enough help for those still struggling to get back on their feet.
Obama travels to two Midwest states at the epicenter of that debate, hard-hit Ohio and Michigan, on Wednesday to highlight his economic policies and place them in pointed contrast to the sharp budget-cutting proposals of House Republicans — and by extension Romney.
Bill Moyers Essay: It Pays to Be Rich
With help from the government, the tax code, and their own money, there's no limit to how rich the super-rich aim to be -- disconnecting themselves further and further from the American people as a result. Bill Moyers examines the gap.
Is there no end to 'Elite Entitlements'? ... welfare for the rich and politically connected; license to steal
Panetta defends $860,000 for weekly trips home Defense secretary says taxpayer-paid military
flights keep his 'mind straight'
By Susan Crabtree and Kristina Wong - WashingtonTimes.com
Defense Secretary Leon E. Panetta on Monday defended the more than $800,000 that taxpayers have paid so far for weekend flights aboard military aircraft to and from his California home, arguing the commute helps relieve stress and keeps his "mind straight."
The defense secretary last week admitted that he has paid about $17,000 of $860,000 in travel costs — about 2 percent — for the trips to California, where he served as a congressman for 16 years.
GSA official's wife accompanied him on trips
at taxpayer expense
By Lisa Rein - WashingtonPost.com
The senior government executive who organized the lavish Las Vegas conference at the center of a General Services Administration spending scandal took dozens of trips for the agency. The boss's wife accompanied him on some of them — and taxpayers picked up the tab.
Deborah Neely wasn't always just sharing husband Jeffrey E. Neely's hotel rooms at resorts from Las Vegas to the Pacific islands. She handled party arrangements, directed event planners to spend government money and arranged lodging for relatives on the GSA trip to Las Vegas in 2010, an unusual role revealed in transcripts of interviews that the agency's inspector general's office conducted with Jeffrey Neely, as well as in congressional hearings.
Blame Congress for the GSA Scandal
By Michael Reagan - PatriotPost.us
Who should we tar and feather for the scandalous spending spree at that General Services Administration "conference" in Nevada two years ago?
Whose fault is it that a bunch of GSA bureaucrats wasted money on $44 breakfasts, a clown and a $75,000 bicycle-building exercise?
Not the GSA's bosses. Not the Obama administration. I pin the blame on Watergate and Congress.
This week Congressional hearings all over Washington have been grilling past and current GSA officials about a $850,000 conference that blew thousands of dollars on things like a mind-reader and "yearbooks" and commemorative coins for the 300 participants.
Lavish spending double standard Democrats' wives lionized
while GOP wives face character assassination
By Grady Means - WashingtonTimes.com
Is anyone else besides me getting a little annoyed at the liberal media double standard in this campaign year? For example, there is the media feeding frenzy over the General Services Administration (GSA) scandal. Certainly, a Las Vegas boondoggle is a huge waste of taxpayer money. But what annoys me is that the several hundred thousand dollars wasted by the GSA is a small fraction of the bill Michelle Obama has slapped on the American taxpayer for her endless vacations and regal lifestyle. It seems as if every other week, Mrs. Obama is firing up Air Force One, Two or Three, loading up the kids and heading off to Spain, Africa, New England, Hawaii or, yes, Las Vegas, for yet another party (er, sorry, I mean "educational exchange," "fact-finding trip," "goodwill tour" or other lame cover story). Mrs. Obama's publicly funded personal travel would appear to be running into the tens of millions of dollars - money that should be given to the poor, devoted to job creation or refunded to taxpayers who thought they were electing a public servant and his wife. They've found out that instead they anointed the "Road Trip Queen." There's the 99 percent, the 1 percent and the Obamas.
Robert Reich Predicts Hillary Clinton
Will Replace Biden as VP on 2012 Obama Reelection Ticket
ScaredMonkeys.com (December 29, 2011)
Obama's political shell game …
Robert Reich predicts Hillary Clinton will be in and Joe Biden out as VP on Obama's 2012 Presidential reelection ticket. This is certainly not something that we have not heard rumored or speculated before. However, according to Reich he has no inside-baseball information to come to this conclusion, only a hunch. Reich states that Obama needs to stir the passions and enthusiasms of a disillusioned Democratic base and an increasing poor economy.
Vatican, breakaway traditionalists near agreement
By Nicole Winfield - AP - WashingtonTimes.com
VATICAN CITY — The Vatican and a breakaway group of traditionalist Catholics appear to be nearing an agreement that could bring the group back into Rome's fold and end a quarter-century of schism.
The Vatican spokesman, the Rev. Federico Lombardi said Wednesday the Society of St. Pius X had delivered an "encouraging" response to the Vatican's demands that it accept some core church teachings. The Vatican had rejected as "insufficient" the group's initial response last month, but Lombardi said the revised position marked "a step forward."
State laws let telephone companies end land-line services
By Adam Sylvain, USA TODAY
First it was street-corner phone booths and home delivery of telephone books. Now, land lines are on their way to becoming part of American telecommunications history.
As consumers continue to move to wireless, states are passing or considering laws to end the requirement that phone companies provide everyone land-line service.
Indiana and Wisconsin are the two most recent states to end the requirement, while many others, including Alabama, Ohio and Kentucky, are considering it.
Google Goes After TV Dollars by Pretending It's TV
By Peter Kafka - AllThingsDigital.com
Google sells a lot of advertising — about $38 billion a year. But the TV guys sell even more — more than $190 billion a year.
Hence Google's new pitch to advertisers: Think of us like TV! Buy us like TV!
Which means Google is going to start using an old-media metric called gross rating points, or GRPs, to sell display ads and video ads.
Cispa will give US unprecedented access,
internet privacy advocates warn With echoes of Sopa, critics charge that bill will overturn US privacy protections in government attempts to track hackers
By Dominic Rushe in New York - Guardian.co.uk
Washington looks set to wave through new cybersecurity legislation next week that opponents fear will wipe out decades of privacy protections at a stroke.
The Cyber Intelligence Sharing and Protection Act (Cispa) will be discussed in the House of Representatives next week and already has the support of 100 House members.
It will be the first such bill to go to a vote since the collapse of the Stop Online Piracy Act (Sopa) in January after global protests and a concerted campaign by internet giants such as Google, Wikipedia and Twitter.
USDA to Let Industry Self-Inspect Chicken
By Jim Avila - ABCNews.com
Chicken is the top-selling meat in the United States. The average American eats 84 pounds a year - more chicken than beef or pork. Sorry red meat, chicken is what's for dinner.
Now, the USDA is proposing a fundamental change in the way that poultry makes it to the American dinner table.
As early as next week, the government will end debate on a cost-cutting, modernization proposal it hopes to fully implement by the end of the year – a plan that is setting off alarm bells among food science watchdogs because it turns over most of the chicken inspection duties to the companies that produce the birds for sale.
Fracking-Induced Earthquakes? Not Quite
ARK - Truthdig.com
The number of significant earthquakes in the Midwest has increased almost fivefold in the last four years. Researchers with the United States Geological Survey set out to discover why.
Though fracking causes tiny tremors, USGS scientists were unable to link those interruptions in the earth's crust directly to large, recurring temblors. But they did notice the new quakes typically occurred around wells used to dispose of tremendous amounts of wastewater produced by fracking—cavities that go deeper than gas drilling wells to levels where faults and stresses are more common. And flooding those levels with high pressure fluid can make earthquakes more likely.
Obama ready to yield on Iran's nuclear transparency.
Israel: Tehran will cheat
DEBKAfile.com
Ayatollah Ali Khamenei: A nuclear weapon is a sin...
In the direct, secret exchanges between the US and Iran which led up to the Istanbul talks with the six powers, of Saturday, April 14, President Barack Obama quietly backed off from his demand that Iran "come clean" on its nuclear activities and open up to international inspection, DEBKAfile reports.
This concession paved the way for Tehran's consent to discuss his framework proposal to stop enriching uranium to 20 percent, halt work at its underground facility for higher enrichment near Qom, and export its stockpile of highly enriched uranium for final processing to 20 percent for use in medical isotopes. This would be presented as a deal for settling the nuclear controversy.
The Big Rally in Gold is Getting Closer and Closer
By P. Radomski - GoldSeek.com
The Hindu festival of Akshaya Tritivai is coming up this month and this is of interest for gold investors. The holiday, which falls on April 24th, is a day when Indians go on a major gold buying binge. It is one of the most auspicious occasions to buy gold, the ultimate symbol of wealth and prosperity. The timing couldn't be better for the ending last week of the 20-day strike by India's jewelers and gold importers who protested new government taxes on bullion. Moreover, the wedding season has already started in some parts of India and gold is an integral part of most Indian weddings. It is expected that in April and May imports will be around a 100 metric tons to India, the world's largest consumer of gold. The nationwide strike is estimated to have cost the industry at least $3.91 billion.
A Return to the Gold Standard,
or Gold Behind Currencies Part 3 Return of Gold to an Active Role in the New,
Global Monetary System
BY JULIAN PHILLIPS - FinancialSense.com
The questions gold investors have to ask themselves is, "if the days of the dollar are numbered, how will gold be used in the monetary system that follows? Will there be a global monetary system that all nations subscribe to or will the monetary world fragment?" For one thing, we will continue to live in a global world with nations trading amongst each other. To gold investors, such an eventuality –let alone its potential reality—would cause a return to the use of gold as a foundation for any monetary system, but not as a means of exchange, ever again. That journey has already started. Whether in a cooperative or uncooperative world, gold will have to provide international liquidity and facilitate trade between nations in place of the dollar. This will include the U.S. too. The world is headed irrevocably to a multi-currency system with the dollar as one of the world's leading currencies, but not the sole one. Gold, as always, will have to inspire the trust it once did. It will have to fill the gap left by the world of currencies that occurred when the developed world removed itself from gold and at the same time removed currencies from supplying adequate measures of value.
The Trouble with Money
BY CHRIS MARTENSON PHD - FinancialSense.com
A Broken Narrative
Recently I was asked by a high school teacher if I had any ideas about why students today seem so apathetic when it comes to engaging with the world around them. I waggishly responded, "Probably because they're smart."
In my opinion, we're asking our young adults to step into a story that doesn't make any sense.
Sure, we can grow the earth's population to 9 billion (and probably will), and sure, we canextract our natural gas and oil resources as fast as possible, and sure, we can continue to pile on official debts at a staggering pace — but why are we doing all this? Even more troubling, what do we say to our youth when they ask what role they should play in this story — a story with a plot line they didn't get to write?
Yuan vs. Dollar: A battle in the making
By Thomas H. Kee Jr. - MarketWatch.com
One of my major concerns coming into the year was China. In fact, I was, and still am, very concerned that China's economy and policies could dramatically impair the U.S. economy. At the end of last year, I was hearing from personal friends who develop in China that people were just walking away from multi-million dollar deals, and the sentiment on the street there was distrust and concern.
I do not know if that has changed yet -- my contacts have not communicated that to me thus far -- but at the same time I am too far removed to know exactly what the ground floor looks like in China anyway.
Are the U.S. and China trading places? Competing narratives obscure facts on GDP gap
By Barry Eichengreen
BEIJING ( Caixin Online ) — By now, everyone has grown accustomed, if not physically weary, of articles extolling China's economic dynamism and rehearsing America's economic decline. While the United States is only now beginning to recover from the most serious recession in nearly 80 years, China skated through the global financial crisis essentially unscathed.
Even if the growth of the Chinese economy now slows to 7.5%, that will still be triple the rate of expansion of the United States, where growth in the wake of the crisis remains subdued. It will not be many years before China overtakes the U.S. in sheer economic size. And with this reversal of economic fortune will come a reversal of political fortune, as China assumes the leading role on the global geopolitical stage.
Spanish Flu May Send EU to Bed
By: John Browne - GoldSeek.com
Recently, the world's economic leaders, including economists at the European Central Bank, the European Union, the International Monetary Fund, and the U.S. Federal Reserve, supported by most of the mainstream financial media, assured the world that the debt agreement worked out between Greece and its creditors would help put an end to the European-wide debt crisis. In reality, the crisis has merely been papered over. Despite the broad rally in stock and bond markets over the past few weeks, I firmly believe that Greece will likely require another bailout within a year.
IMF Raises Global Forecast for First Time Since Early 2011
By Ian Katz - Bloomberg.com
The International Monetary Fund raised its global growth forecast for the first time in more than a year, with the U.S. boosting the outlook while recent improvements remain "very fragile."
The world economy will expand 3.5 percent this year, compared with a January projection of 3.3 percent, the Washington-based IMF said today in its World Economic Outlook. It sees growth of 4.1 percent in 2013, up from 4.0 percent. It raised its forecasts for the U.S. to gains of 2.1 percent this year and 2.4 percent in 2013.
IMF still won't admit truth about the euro It is often said that travel broadens the mind. Not so for finance ministers gathering in Washington DC this week for the spring meeting of the International Monetary Fund and G20. For them, the agenda will seem wearily familiar.
By Jeremy Warner - Telegraph.co.uk
Like a bad penny, the eurozone debt crisis keeps returning, seemingly deliberately to coincide with these international summits. Spain's rapidly deteriorating economic and financial position provides the flash point du jour.
With yields on Spanish government debt again above 6pc, and a couple of crucial bond auctions looming, matters are once more coming to a head. Crushed by repeated austerity programmes, the big southern European economies are sinking back into recession, raising new doubts about their ability to meet fiscal targets.
Investors bet ECB will bring Spain back from brink
By William James
LONDON, April 17 (Reuters) - Some investors are betting the rise in Spanish borrowing costs will force the European Central Bank to dust off its bond-buying programme to shore up the euro zone's fourth largest economy and head off a more acute phase in the debt crisis.
Prime Minister Mariano Rajoy spooked markets last month by loosening his country's budget deficit targets. Since then, bond yields have climbed at an accelerating pace as international long-term investors pull money out of the country.
Oil Trades Near Two-Week High on Spanish Debt, IMF Forecast
By Ben Sharples - Bloomberg.com
Oil traded near the highest close in two weeks after Spain raised more debt than planned at an auction and the International Monetary Fund boosted its global growth outlook, easing concern a slowing economy will curb demand for crude.
Futures were little changed after gaining for a second day yesterday. Spain sold 3.2 billion euros ($4.2 billion) of bills, compared with a maximum target of 3 billion. The IMF raised its growth forecast for 2012 to 3.5 percent from 3.3 percent and increased its 2013 estimate. U.S.crude stockpiles rose for a fourth week, data from the American Petroleum Institute showed.
How the U.S. Could Protect Itself
Against Volatile Oil and Gas Prices
By Gary Hunt - OilPrice.com
Global oil prices are driven by a 'rule of thumb' that suggests prices will go up when the spare capacity of oil available on any given day is less than 5% of expected global demand. In today's high priced oil market that swing in spare capacity is about 2%.
This a big deal because traders worry about risk such as events in the Middle East, or with Iran or any other places that supplies oil. Spare capacity or swing productive capacity is the volume of oil than can be delivered as a percentage of expected global demand in a thirty day period. Like any other commodity market, the tighter the supply the higher and more volatile the price.
Obama proposes steps to boost oversight of oil markets
By Steven Mufson - WashingtonPost.com
President Obama proposed measures Tuesday to step up oversight of energy markets and boost by tenfold the penalties for market manipulation, in an effort to blunt political pressure over the 20 percent increase in gasoline prices since the beginning of the year.
The new measures would, with congressional approval, provide an additional $52 million to the Commodity Futures Trading Commission, boost civil and criminal penalties from $1 million per violation to $10 million a day for violations and give the CFTC greater power to set margin requirements that would force traders to provide more cash and reduce leverage when buying contracts.
Obama wants $52 million to crack down on oil speculation
By Susan Crabtree - The Washington Times
Feeling election-year heat from consumer pain at the pump, President Obama on Tuesday called for a new regulatory crackdown on oil speculators, including stiffer penalties for market manipulation and more resources and tools for enforcement.
The White House proposal is designed to act as a deterrent to illegal manipulation of the energy market, which Mr. Obama and other Democrats repeatedly have said is at least partially responsible for high gas prices.
Mr. Obama urged Congress to act quickly to fund the $52 million proposal Tuesday.
Obama Wants to Target Oil Market Manipulation
President Barack Obama is asking Congress for help in policing oil markets to be on the lookout for price manipulation by speculators. Obama says the country can't have some speculators reap millions while consumers suffer from high gas prices.
Keystone XL Likely Dead
By Daniel J. Graeber - OilPrice.com
Critics of U.S. domestic energy policy are trying to maneuver the Keystone XL oil pipeline past the Oval Office, trumpeting the project as the 21st century version of the New Deal. The project has come to represent growing divisions in domestic energy policy during the presidential campaign cycle in the United States. In the long shadow of the project, however, are a series of domestic oil pipelines that could make Keystone XL redundant by the time it goes into service in 2015.
Republican lawmakers may try to force the administrations hands once again on the Keystone XL pipeline, a project meant to transfer crude oil from tar sand deposits in Alberta, Canada, to refineries along the southern U.S. coast. Presumptive Republican presidential nominee Mitt Romney mourned, before an audience of supporters in Nevada, that the U.S. government was able to put its manufacturing muscle on display by building the interstate highway system and the Hoover Dam. Now, the U.S. government "can't even build a pipeline," he said in a reference to Keystone XL.
The big day for Swiss cheese, or the tax code
By Wesley Pruden - The Washington Times
Life is unfair, as John F. Kennedy famously observed. That might not have been the most memorable thing he ever said, but it's probably the most quoted, and when better to repeat it than on the last day for Americans to file their federal income tax returns.
Jimmy Carter, who has mercifully all but disappeared down the memory hole, called the U.S. tax code "a disgrace to the human race."Hitler, cancer and the designated hitter follow closely, but we take Mr. Jimmy's point. How the government confiscates our money, like a root canal without anything to kill the pain, is not very nice. But like a village dentist armed with only a pair of greasy pliers, the government gets the job done.
U.S. consumers adjust to $4 gasoline $4 gas reinforces trend toward lower U.S. fuel consumption
By Steven Mufson - WashingtonPost.com
Are American motorists finally changing their gas-guzzling ways?
As prices have neared and in some cases topped $4 a gallon, drivers have cut their consumption of gasoline to its lowest levels in a decade, driving less and buying cars that are more fuel-efficient.
The adjustment has slowed the climb in gasoline prices, which until last week had risen for 10 consecutive weeks, and could preserve some money for Americans to spend on other items as the economy struggles to recover more convincingly.
The Too Big To Fail Banks
Are Now Much Bigger
And Much More Powerful Than Ever
By Michael Snyder - TheEconomicCollapseBlog.com
The Democrats, the Republicans and especially Barack Obama promised that something would be done about the too big to fail banks so that they would never again be a threat to destroy our financial system. Well, those promises have not been kept and the too big to fail banks are now muchbigger and much more powerful than ever. The assets of the five biggest U.S. banks were equivalent to about 43 percent of U.S. GDP before the financial crisis. Today, the assets of the five biggest U.S. banks are equivalent to about 56 percent of U.S. GDP. So if those banks were "too big to fail" before, then what are they now? They continue to gobble up smaller banks at a brisk pace, and they continue to pile up debt and risky investments as if a day of reckoning will never come. But of course a day of reckoning is coming, and when it arrives they will be expecting more bailouts just like they got the last time.
Keiser Report: Meets Schiff Report 4.0 (E276)
In this episode, Max Keiser and co-host, Stacy Herbert discuss the Fukushima of Central Bank quantitative easing policies and the blowfish that is more deadly than a Goldman Sachs CDO. In the second half of the show Max talks to investor, author and radio show host, Peter Schiff about gold, the dollar and Japanese monetary policy.
Housing Data Disappoint ... Again
By Matthew Philips - BusinessWeek.com
So the latest housing number is kind of bad: 654,000 new units were started in March, 5.8 percent below the revised February numbers. Economists surveyed by Bloomberg were expecting something considerably higher. The median estimate of the 82 who ventured a guess was 705,000. Even the lowball forecast, 670,000, was too high. It's the rare economic survey where the biggest bear isn't bearish enough. Clearly we've been fooled by housing again: Just when it looked like he was getting out of bed, the perpetual sick man of the recovery rolls over with some phlegmy numbers.
Homes Cost More to Build Than They're Worth
By AnnaMaria Andriotis - SmartMoney.com
U.S. home building fell for the second straight month down to its lowest level since October, Commerce Department data released Tuesday shows. Builders increasingly blame home appraisals, which often value properties less than expected – and sometimes come in even lower than the cost of constructing the house in the first place.
One out of three builders say they lost signed sales contracts during the last half of 2011 because appraisals on their homes were less than the sales price the buyer agreed to, according to the latest data from the National Association of Home Builders. The association says the situation hasn't improved since. And roughly a third of builders say the appraisal amount was less than the cost of building the home.
Housing: New Bubble or More Trouble?
BY JOHN RUBINO - FinancialSense.com
The in-laws own a gas station in Miami that they've wanted to sell for years. But they dithered when the market was hot and ended up being stuck with it when interest evaporated in 2009.
Lately, though, the phone has begun to ring again. It's not exactly a feeding frenzy but real offers are coming from legitimate buyers for the first time in three years.
That's actually a pretty good description of real estate in general, where low interest rates have convinced a growing number of people that it's time to buy. See this upbeat story on the home builders:
Big Banks Slack on Maintaining Foreclosed Homes
in Minority Areas, Complaint Charges
by Cora Currier - ProPublica.org
Wells Fargo and U.S. Bank have let foreclosed homes in black and Latino neighborhoods lapse into disrepair, while bank-owned homes in mainly white neighborhoods are better cared-for, according to housing advocates.
The National Fair Housing Alliance, a non-profit group, brought a formal complaint to the Department of Housing and Urban Development last week alleging that Wells Fargo violated the Fair Housing Act by failing to keep up homes in minority neighborhoods. Today, the group announced they are also filing a second complaint, against U.S. Bank.
Is HUD on the chopping block? HUD targeted as budget pressures grow
By Zachary A. Goldfarb and Brady Dennis - WashingtonPost.com
Republican frontrunner Mitt Romney was overheard earlier this week saying he might eliminate the Housing and Urban Development Department.
President Obama's advisers say he is trying to preserve HUD's support for housing aid, but advocates for the poor say his budget plans would raise rents on very-low-income Americans and could cause some families to lose assistance.
Health Care in an Age of American Decline
by RAVI KATARI - Counterpunch.org
"A heart that's full up like a landfill. A job that slowly kills you. Bruises that won't heal. You look so tired, unhappy. Bring down the government, they don't speak for us. I'll take a quiet life, a handshake of carbon monoxide."
The existential sorrow in Thom Yorke's voice has never sounded as poignant as it does today in "No Surprises", a track of lonely capitulation on Radiohead's monolithic OK Computer. The song evokes images of helplessness and retreat in the face of globalization and corporate capitalism. The accompanying music video features Yorke's head in a bubble helmet that slowly fills up with water (1). The symbolism in both the lyrics and the video has become increasingly relevant since the record's release fifteen years ago.
Fed parses job numbers for clues on economy
By Jonathan Spicer and Debbie Hummel
(Reuters) - Two top Federal Reserve officials pointed on Monday to last month's surprisingly weak jobs report as all the more reason to take a wait-and-see approach to a U.S. economy that, in general, is improving.
Although the unemployment rate slipped to a still high 8.2 percent in March, jobs growth slowed sharply, raising fears the labor market could start to sputter as it did a year ago. Nonfarm payroll employment rose by only 120,000 last month, roughly half the gains in each of the previous two months.
Mixing and Matching
By Thomas Sowell - PatriotPost.us
Apparently the soaring national debt and the threat of a nuclear Iran are not enough to occupy the government's time, because the Obama administration is pushing to force Westchester County, N.Y., to create more low-income housing, in order to mix and match classes and races to fit the government's preconceptions.
Behind all this busy work for bureaucrats and ideologues is the idea that there is something wrong if a community does not have an even or random distribution of various kinds of people. This arbitrary assumption is that the absence of evenness or randomness -- whether in employment, housing or innumerable other situations -- shows a "problem" that has to be "corrected."
Simultaneous Jobs Data Release Jeopardized
By Meera Louis - BusinessWeek.com
The U.S. Department of Labor said it can't assure news organizations they will be able to transmit market-sensitive economic data at exactly the same moment under changes resulting from the first review of procedures in a decade.
The agency ordered journalists to remove computer hardware, software and communications lines they currently have installed at the department to transmit news on data such as the jobless rate and consumer prices. Instead, reporters will have to use equipment, software and Internet connections provided by the government.
Henry Kissinger Coming Home to Harvard Kissinger returns to Harvard—and America turns a corner.
By Niall Ferguson - TheDailyBeast.com
A successful college graduate is, as a general rule, loved by his alma mater. The more prominent he becomes, the more phone calls he receives. If he really makes the big time, there are invitations to host grand dinners, receive honorary degrees, give commencement addresses ... and of course, bestow his name on this or that chair or building (as well as on a very large check).
Marc Faber-Go East Young Man/Woman--13.Apr.2012
The renowned Dr. Doom also known as Dr. Marc Faber joined FSN today to discuss his latest commentary that it might just be time to start looking at real estate investments in severely distressed markets such as Florida and Arizona. Dr. Faber explained his outlook for the Western Economies, his forecasts for Gold and Silver, and his take on "printing press" economics.
A Death Bounty and an Attorney General
By Arnold Ahlert - PatriotPost.us
Why Eric Holder ignores the New Black Panther Party's price for George Zimmerman's head.
One can be forgiven for wondering what level of New Black Panther Party (NBPP) thuggery is sufficient to warrant the attention of Florida law enforcement officials or, seemingly, the most myopic U.S. attorney general to ever head the Department of Justice. On March 24th, New Black Panther Party leader Mikhail Muhammad offered a $10,000 bounty for the "capture" of Zimmerman and publicly stated that Zimmerman "should be fearful for his life." Fellow Panthers distributed wanted posters calling Zimmerman a "child killer" and offering that bounty "dead or alive." And in a mind-boggling rant during a conference call, Michelle Williams, Chief of Staff for the Tampa, FL branch of the NBPP, told Party members to get ready for a "race war."
Washington Leads World Into Lawlessness
By Paul Craig Roberts - PaulCraigRoberts.org
The US government pretends to live under the rule of law, to respect human rights, and to provide freedom and democracy to citizens. Washington's pretense and the stark reality are diametrically opposed.
US government officials routinely criticize other governments for being undemocratic and for violating human rights. Yet, no other country except Israel sends bombs, missiles, and drones into sovereign countries to murder civilian populations. The torture prisons of Abu Gahraib, Guantanamo, and CIA secret rendition sites are the contributions of the Bush/Obama regimes to human rights.
10 Disgusting Examples Of Very Young School Children
Being Arrested, Handcuffed And Brutalized By Police
By Michael Snyder - EndOfTheAmericanDream.com
When did we decide that it was okay to treat very young school children as if they were terror suspects? When I was growing up, I don't remember a single time that the police ever came to my school and arrested anyone. But now police are being called out to public schools at the drop of a hat. All over America, very young school children are being arrested and marched out of their schools in handcuffs in front of all their friends. For example, down in Georgia the other day police were called out because a 6-year-old girl was throwing a tantrum. The police subdued her, slapped handcuffs on her and hauled her off to the police station. Instead of apologizing for this outrageous incident, the policeare defending the actions of the officer involved. But this is not an isolated incident. All over the country young kids are being handcuffed and mistreated by police.
U.S. factory decline suggests economy losing steam
By Jason Lange
(Reuters) - Output at U.S. factories slipped in March and builders started construction on fewer homes, offering cautionary signals for an economy that appeared to be gaining traction.
Manufacturing output slipped for the first time in four months, dropping 0.2 percent, the U.S. Federal Reserve said on Tuesday.
The decline dragged on overall industrial production which was unchanged and fell short of analysts' expectations.
IRS Insanity: Small Business Owner Takes IRS to Court
You think the federal government is bad for taxpayers, you should hear what the IRS is doing to tax preparers. New Internal Revenue Service rules are putting regulatory burdens on tax preparation services. Critics say that the new rules are unconstitutional and only benefit big tax preparers. Hear more as Alexis Garcia interviews Chicago small business woman Sabina Loving about the burdens the federal government is putting on her tax preparation service, and what Loving is doing to fight back.
Court says Arizona can demand voter identification
By Tim Gaynor
(Reuters) - A U.S. appeals court on Tuesday ruled Arizona may require voters to show identification at the polls, a ruling likely to add fuel to the fiery debate about voting rights in a presidential election year.
But the court also ruled the state cannot demand that they show proof of U.S. citizenship to register to vote in federal elections, a decision the state's attorney general said he would appeal.
Life AFTER Hillary... Washington Whispers About Who
Will Be Next Secretary of State Handicapping the race for secretary of state.
TheDailyBeast.com
Next to guessing whom Mitt Romney will pick as his running mate, there's no more delicious fruit on Washington's tree of gossip than the identity of the next secretary of state. It remains a position of transcendent importance, especially in a new world where everyone seems to live and throw garbage in everyone else's backyard. The prospects generally lack the public presence and star power of most Foggy Bottom occupants—Henry Kissinger, Colin Powell, and Condi Rice, for example. And they certainly don't rival Hillary Clinton, who is determined both to stay until January and not be a lame duck. Doubt not that she has the will, standing abroad, and popularity at home to walk from office with head high.
Is Hillary running?... For VP or POTUS? Bill Clinton enters 2012 race — to back his wife's supporters
By Josh Lederman - TheHill.com
The congressional candidates former President Clinton is supporting in 2012 have something in common: They all backed his wife's presidential bid four years ago.
Sources close to Clinton said he wants to help those who put themselves on the line to support the former first lady's campaign for the White House. But with Hillary Clinton serving in the Obama administration and Chelsea Clinton working for NBC News, Bill Clinton is the only member of the family in a position to hit the campaign trail.
Could Hilary Rosen's slip
put Hillary Clinton on Obama's ticket?
By Michael Goodwin - FOXNews.com
It was a serious mistake, the result of a class-warfare strategy followed to a fault by a zealous Democrat. But inadvertently, one Hilary's blunder could open the door to the other Hillary's rise.
We speak of the attack on Ann Romney by Hilary (one L) Rosen. The fallout raises the odds that Hillary (two L's) Clinton will end up as Barack Obama's running mate.
Rosen went way over the line carrying out the White House message that Mitt Romney is waging a "war on women." Rosen's accusation that Ann Romney "never worked a day in her life" is the biggest unforced error by Team Obama so far.
GOP chairman:
Google 'supportive' of controversial cybersecurity bill CISPA
By Brendan Sasso - TheHill.com
Google has been working behind the scenes with lawmakers in the House on a controversial cybersecurity bill, Rep. Mike Rogers (R-Mich.) told The Hill.
Rogers, the chairman of the House Intelligence Committee, said Google has been "supportive" of his Cyber Intelligence Sharing and Protection Act (CISPA), which has angered some of the same Internet activists who joined with Google to defeat the Stop Online Piracy Act (SOPA).
Why the FCC Fined Google Just 68 Seconds in Profits
by Justin Elliott - ProPublica.org
The Federal Communications Commissionannounced Friday it is slapping a fine on Google for deliberately impeding an investigation of the collection of sensitive wireless network data as part of the search giant's Street View mapping project. The amount of the fine: $25,000.
That figure is, of course, barely a rounding error for the company. Google made $2.89 billion last quarter, or $25,000 in profits every 68 seconds.
The Coming Book Wars:
Apple vs. Amazon vs. Google vs. the U.S. Unresolved conflicts among publishers, sellers, libraries,
and the U.S. Justice Department cloud the future
of the publishing industry.
By Peter Osnos - TheAtlantic.com
Unless you are embedded somewhere in the publishing industry spectrum as an author, editor, bookseller, or librarian, the odds are that you will find it very hard to keep up with the pace of sweeping changes underway connected to the impact of the enormous expansion of digital reading. The latest authoritative survey came from Pew Research, reporting that 21 percent of American adults say they have read an eBook in the past year, with the average number of books at 24, compared to 15 for those who said they purchased only printed books -- confirmation that digital readers represent, generally speaking, very good news for literacy.
Central Kan. officials criticize storm chasers
KSN.com
SALINA, Kansas (AP) — Some central Kansas safety officials say storm chasers created traffic jams and put others in danger while following severe weather that hit the state during the weekend.
But professional storm chasers are defending the practice, saying they provide valuable information to public officials during stormy weather.
Palestinian PM to set out grounds for negotiation with Israel Salam Fayyad to deliver Binyamin Netanyahu letter describing conditions under which Palestinians will resume talks
By Harriet Sherwood in Jerusalem - Guardian.co.uk
The Palestinian prime minister, Salam Fayyad, is to deliver a letter to his Israeli counterpart in the pair's first ever meeting, setting out the grounds on which the Palestinians are prepared to resume negotiations and warning that the status quo cannot continue.
The letter, from Palestinian president Mahmoud Abbas, will say the Palestinian Authority (PA), set up under the 1993 Oslo accords, has "lost its raison d'être", according to local media accounts. However, Abbas will not threaten its dissolution, a move advocated by some who say Israelmust take full responsibility for the territory it occupies and that the PA provides it with a fig leaf.
Weak Selling Leaves Gold Open to Bigger Bounce
By Rod David - Minyanville.com
The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.
Today's Highlight: Gold started the week feigning further reaction down from last week's bounce high. Any delay in confirming it Tuesday would be very bullish to resume the bounce.
Tony Robbins, Ron Paul And Ben Bernanke All Agree:
The National Debt Crisis Could Destroy America
By Michael Snyder - TheEconomicCollapseBlog.com
Is there one thing that Tony Robbins, Ron Paul and Ben Bernanke can all agree on? Yes, there actually is. Recently they have all come forward with warnings that the national debt crisis could destroy America if something is not done. Unfortunately, our politicians continue to spend us into oblivion as if there will never be any consequences. When Barack Obama took office, the U.S. national debt was 10.6 trillion dollars. Today, it is 15.6 trillion dollars and it is rising at the rate of about 150 million dollars an hour. During the Obama administration so far, the U.S. government has accumulated more debt than it did from 1776 to 1995. The United States now has a debt to GDP ratio of over 100 percent, and another credit rating agencydowngraded U.S. debt earlier this month.
Waiting for the Next Shoe to Drop
BY JOE DUARTE - FinancialSense.com
The financial markets move into a new week on pins and needles as some major technical gauges continue to flash cautionary signals. And when you add the nuances caused by high frequency computer, algorithm based trading, fueled by extra real time quotes, you've got a recipe for disaster.
What makes this week most interesting is that the news is just as likely from the earnings front than from anywhere else as there are too many stories that are on their way to their next step, but not that many new stories developing.
China Adds Treasuries for Second Month on Reserve Growth
By Daniel Kruger and Monami Yui - Bloomberg.com
China remained the largest foreign U.S. creditor in February amid a rebound in the country's foreign-currency reserves as Japan's purchases of Treasuries picked up.
China's holdings rose for a second straight month, increasing by 1.1 percent to $1.18 trillion, U.S. Treasury Department data released yesterday show. Those of Japan, America's second-largest lender, climbed 1.2 percent to $1.096 trillion as the Asian nation continued to intervene in the currency market to stem yen's appreciation. Net foreign purchases of Treasuries rose $41.2 billion, or 0.8 percent, to a record $5.1 trillion, the data show.
The Next Global Crash:
Why You Should Fear the Commodities Bubble Investors have gone crazy for commodities, pouring money into everything from oil to copper. Just like the world's mania for tech stocks in the 1990s, this boom is headed for a bust.
By Ruchir Sharma - TheAtlantic.com
As playwright Arthur Miller once observed, "An era can be said to end when its basic illusions are exhausted." Most of the illusions that defined the last decade -- the notion that global growth had moved to a permanently higher plane, the hope that the Fed (or any central bank) could iron out the highs and lows of the business cycle -- are indeed spent. Yet one idea still has the power to capture the imagination of the markets: that the inexorable rise of China and other big developing economies will continue to drive a "commodity supercycle," a prolonged upward rise in the prices of commodities ranging from oil to copper and silver, to textiles, to corn and soybeans. This conviction is the main reason for the optimism about the prospects of the many countries that live off commodity exports, from Brazil to Argentina, and Australia to Canada.
Keiser Report: Too Broke To Go Broke (E275)
In this episode, Max Keiser and co-host, Stacy Herbert discuss the hot topic of currency wars in China and Americans being too broke to go broke while hoping to outrun the global flash crash. In the second half of the show Max talks to Rick Ackerman of Rick's Picks newsletter. They discuss flash crashes, market making, options trading, manipulating markets and more.
Europe's Short Vacation
By Nouriel Roubini - Project-Syndicate.org
NEW YORK – Since last November, the European Central Bank, under its new president, Mario Draghi, has reduced its policy rates and undertaken two injections of more than €1 trillion of liquidity into the eurozone banking system. This led to a temporary reduction in the financial strains confronting the debt endangered countries on the eurozone's periphery (Greece, Spain, Portugal, Italy, and Ireland), sharply lowered the risk of a liquidity run in the eurozone banking system, and cut financing costs for Italy and Spain from their unsustainable levels of last fall.
Euro Weakens Ahead of Spanish Debt Sales; Oil Climbs
By Lynn Thomasson and Kristine Aquino - Bloomberg.com
The euro weakened against most of its 16 major counterparts before Spanish bill sales, while Australian stocks rose and oil in New York climbed.
The euro fell 0.2 percent to $1.3118 as of 9:22 a.m. in Tokyo. Australia's S&P/ASX 200 Index added 0.2 percent. The MSCI Asia Pacific Index and Standard & Poor's 500 Index futures were little changed. Oil in New York advanced for a second day, gaining 0.2 percent to $103.10 a barrel.
All Eyes on Spain
BY DOUGLAS NOLAND - FinancialSense.com
"To talk about a bailout for Spain at the moment makes no sense. Spain is not going to be rescued. It's not possible to rescue Spain. There's no intention to, it's not necessary and therefore it's not going to be rescued." Spanish Prime Minister Marino Rajoy, April 12, 2012
The respite from the European debt crisis has run its course, and with the return of market stress comes a ratcheting up of vitriol directed at the Germans. I find it all worrying. For a moment today I tried to take comfort from a UK Telegraph headline that scrolled by on the Bloomberg screen: "Worrying Is Good for You and Reflects Higher IQ." I'm adding this to my list of notions that sound appealing and I only wish were true.
Spain: Too Big to Fail and Too Big to Save Spain, while attempting to comply with new European austerity rules, still fears that the situation has created "a vicious circle that strangles Spain."
By John Mauldin - Minyanville.com
I fully intended to ignore Spain this week. Really, truly I did. I had my letter all planned, but then a few notes drew my attention, and the more I reflected on them, the more I realized that the inflection point that I thought the European Central Bank had pushed down the road for at least a year with their recent €1 trillion LTRO is now rushing toward us much faster than ECB President Mario Draghi had in mind when he launched his massive funding operation.
The War for Spain
BY JOHN MAULDIN - FinancialSense.com
I fully intended to ignore Spain this week. Really, truly I did. I had my letter all planned, but then a few notes drew my attention, and the more I reflected on them, the more I realized that the inflection point that I thought the ECB had pushed down the road for at least a year with their recent €1 trillion LTRO is now rushing toward us much faster than ECB President Draghi had in mind when he launched his massive funding operation.So, we simply must pay attention to what Spain has done this week – which, to my surprise, seems to have escaped the attention of the major media. What we will find may be considered a tipping point when the crisis is analyzed by some future historian. And then we'll get back to some additional details on the US employment situation, starting with a few rather shocking data points. What we'll see is that for most people in the US the employment level has not risen, even as overall employment is up by 2 million jobs since the end of the recession in 2009. And there are a few other interesting items. Are we really going to see 2 billion jobs disappear in the next 30 years?
Spain Government May Take Over Some Regions' Finances;
Spanish 10-Year Yield His 6.15%,
CDS at Record High; Mission Impossible Madrid Threatens Intervention as Regional Debt Worries Mount
By Mike Shedlock
Madrid has threatened to seize budgetary control of wayward Spanish regions as early as May if they flout deficit limits, officials said – as investors took fright at the fragility of some eurozone economies.
Concerns about overspending by Spain's 17 autonomous regions and fears that its banks will need to be recapitalised with emergency European Union funds undermined confidence in the country's sovereign bonds, forcing down prices and pushing yields up above 6 per cent on Monday – towards levels considered unsustainable.
Spain has accepted mission impossible
By Wolfgang Münchau - FT.com
the markets panicking because Spain may fail to hit its deficit targets, or are they panicking at the thought that Spain may succeed? That, to me at least, is the key question facing eurozone policy makers. The ultimate outcome of the eurozone crisis will depend to a large extent on how that question is answered.
News coverage seems to suggest that the markets are panicking about the deficits themselves. I think this is wrong. The investors I know are worried that austerity may destroy the Spanish economy, and that it will drive Spain either out of the euro or into the arms of the European Stability Mechanism.
Euro Area Seeks Bigger IMF War Chest on Spanish Concerns
By Patrick Donahue and Simon Kennedy - Bloomberg.com
European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain's government battles to quell renewed market turmoil over its finances.
Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain's position have ratcheted the nation's borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund's spring meeting in Washington from April 20-22.
thanks, JQ...
Iceland did not forgive mortgage debt wholesale.
Prosecutions Summing up at former Iceland PM negligence trial
Yesterday and today are the final days of the Landsdómur trial against former Icelandic PM Geir H. Haarde. The prosecution summed up yesterday and the defence is doing so today.
Mortgage Debt Relief Icelandic government outlines household debt relief plans
The Icelandic government today signed a declaration of intent with the country's pension funds and loan providers aimed at tackling the problems of indebted householders.
The declaration allows for the worst positioned householders to reduce their debt by up to 70 percent of the value of their property. A government press release estimates that some 60,000 households could benefit from the new deal.
Credit Card Legislation Legislation on foreign-denominated loans enacted in Iceland
Legislation regarding unlawfully foreign-denominated loans to Icelandic households has come into force following its enactment by parliament. Financial institutions now have 90 days to convert foreign-denominated automobile loans in accordance with the interest rates published by the Central Bank of Iceland. Furthermore, households with housing mortgages will have the option of converting the loans into inflation-linked loans or non-indexed loans.
However, they did:
• Default on their debt..
• Prosecuted a Prime Minister..
• Adjusted Credit Cards debt that had been pegged to other currencies. Serious blessing to the Icelandic consumer.
• Allowed seriously underwater mortgages to get written down and gave the occupants interest free un-indexed loans. Imagine that! Consumer debt relief and loan value write downs. Hasn't happened in the US to my knowledge.
• And is having an economic recovery.. They followed something akin to capitalism by letting the banks fail.
OptionsXpress Accused by SEC of Naked Short-Sale Violations
By Joshua Gallu - Bloomberg.com
OptionsXpress Inc. (OXPS), the Chicago brokerage acquired by Charles Schwab Corp. (SCHW) last year, was accused by U.S. regulators of using sham "reset" transactions as part of an abusive naked short-selling scheme.
The company and four executives violated Securities and Exchange Commission rules in conducting trades from at least October 2008 to March 2010 designed to give the illusion of compliance with rules governing short sales, the SEC said in a statement today. An OptionsXpress customer was also accused by the SEC of participating in the alleged violations.
Banks Seen Dangerous
Defying Obama's Too-Big-to-Fail Move
By David J. Lynch - Bloomberg.com
Two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming "too big to fail," the nation's largest banks are bigger than they were before the nation's credit markets seized up and required unprecedented bailouts by the government.
Five banks -- JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc.,Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. -- held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to central bankers at the Federal Reserve.
Keiser Report: Somali Style! (E274)
In this episode, Max Keiser and co-host, Stacy Herbert debt fondue and Central Banks. They also talk about Somalia's stable shilling and the lesson it holds for Europe. In the second half of the show Max talks to professor and economist, Constantin Gurdgiev about the new book of essays he's edited - What if Ireland defaults? They discuss the good cop, bad cop routine by the Troika in Ireland and what lessons can be drawn from the Russian default of the late 90's.
Romney's Lead Economist Urges Policies
that will Cause the Next Financial Crisis
BY WILLIAM K BLACK PHD - FinancialSense.com
Presidential nominees of either U.S. party can secure economic advice from any economistin the world. This makes it all the more amazing and sad that they choose economists with track records of disastrous policy advice. Bill Clinton chose Robert Rubin, George W. Bush chose Gregory Mankiw, Obama chose Lawrence Summers, and Mitt Romney chose Mankiw. Rubin and Summers led the Clinton administration's efforts to gut financial regulation. Mankiw led the efforts under Bush. Collectively, these efforts created the criminogenic environment that produced endemic financial fraud ("green slime").
The TurboTax Crime Wave Taxpayers deserve the same defense
from IRS penalties as Tim Geithner
By RODNEY P. MOCK And NANCY E. SHURTZ - WSJ.com
This year more than three-fourths of all individual tax returns will be filed electronically, and a growing number will come from people who used tax-preparation software. As modern and efficient as this is, the law has not caught up. Taxpayers who employ an accountant or other preparer have some protection from daunting penalties if the IRS finds mistakes. Software users who prepare their returns without help have little or no protection.
Tax time also means tax cheating
By Claudia Buck - The Sacramento Bee
An anonymous letter arrived at The Bee recently from a worried spouse. The woman said she was "terrified" that her husband's tax cheating would land them both in federal prison. Her husband, she said, didn't report all their rental property income because "everyone does it."
What, she asked, happens to "tax cheaters like my husband" and what are my options?
Taxes—Who Really Is Paying Up
By ANDREA COOMBES - WSJ.com
Do you pay your fair share in taxes?
Even as President Barack Obama pitches the "Buffett rule" to ensure that millionaires pay at least a 30% tax rate, some commentators are decrying the fact that about half of U.S. taxpayers don't pay any federal income tax.
But our tax system is more complex than any sound bite or simplistic headline can illustrate.
Tax time pushes some Americans to take a hike
By Atossa Araxia Abrahamian
(Reuters) - A year ago, in Action Comics, Superman declared plans to renounce his U.S. citizenship.
"'Truth, justice, and the American way' - it's not enough anymore," the comic book superhero said, after both the Iranian and American governments criticized him for joining a peaceful anti-government protest in Tehran.
Taxes and Economic Breakdown
BY JR NYQUIST - FinancialSense.com
If a nation wishes to become prosperous, it must be free. America is the prime example of a free country becoming the richest country in the world. Toward the beginning of the modern era the Netherlands freed itself from Spain, and became prosperous. But as Spain languished under the Inquisition, all the plundered gold of the Americas could not save her from decline. In ancient times the Roman Empire suffered economic decline because freedom was curtailed under the later emperors. We see examples in history, again and again: if freedom is compromised, prosperity will also be compromised.
But how do we understand the term freedom?
There's nothing more uncertain than taxes Tax rates on track to soar, unless politicians can agree
By Jack Nutter
WASHINGTON (MarketWatch) — For most American taxpayers, the U.S. income tax filing deadline is coming and then will be gone. The dreaded 1040, W-2, 1098 and 1099 forms and more will be a distant memory until next year.
Many taxpayers spent hours gathering information and then filled out the appropriate forms on a computer program, by hand or paid a professional service for the privilege of contributing to this great Republic. Some taxpayers will get a refund but many others will have to write a check to the U.S. Treasury. Almost everyone will be grumbling when it is all over for one reason or another.
You Are Free To Travel—If The IRS Lets You
By Gonzalo Lira
A bill that nobody is paying any attention to is sailing through Congress: Senate Bill 1813. It passed the Senate by 74 to 22, and is expected to sail through the House as well. It's an act "[t]o reauthorize Federal-aid highway and highway safety construction programs, and for other purposes."
It's the "and for other purposes" part of the title that has me worried — specifically Section 40304: "Revocation or denial of passport in case of certain unpaid taxes."
This section would give the IRS the power to keep a U.S. citizen from traveling — and it's another example of Executive Power run amok. It's another example of how the United States is turning into a police-state.
Romney Specifies Deductions He'd Cut
By SARA MURRAY - WSJ.com
PALM BEACH, Fla.—Mitt Romney, speaking at a private fundraising event on Sunday, offered the first details of deductions he would eliminate or limit in order to offset the income tax cut he has proposed for all taxpayers.
Mr. Romney, the presumptive Republican nominee for president, said he would eliminate or limit for high-earners the mortgage interest deduction for second homes, and likely would do the same for the state income tax deduction and state property tax deduction.
Pothole Nation Infrastructure vs. the Cherished Priorities of the Rich
by SAM PIZZIGATI - Counterpunch.org
Investing in infrastructure used to be a political no-brainer. Politicians of nearly every ideological stripe supported government spending on everything from school buildings to bridges.
The more conservative pols would typically favor highways, the more liberal preferred mass transit. But nearly all elected officials considered quality infrastructure essential. Businesses simply couldn't thrive, even conservatives understood, without it.
25 Signs That Middle Class Families
Have Been Targeted For Extinction
By Michael Snyder - TheEconomicCollapseBlog.com
The middle class in America is being systematically wiped out, and most people don't even realize what is happening. Every single year, millions more Americans fall out of the middle class and become dependent on the government. The United States once had the largest and most vibrant middle class in the history of the world, but now the middle class is rapidly shrinking and government dependence is at an all-time high. So why is this happening? Well, America is becoming a poorer nation at the same time that wealth is becoming extremely concentrated at the very top. At this point, our economic system is designed to funnel as much money and power to the federal government and to the big corporations as possible. Individuals and small businesses have a really hard time thriving in this environment. To most big corporations these days, workers are viewed as financial liabilities. Most corporations want to reduce their payrolls as much as possible. You see, the truth is that most corporations want to be just like Apple. If you can believe it, Apple makes $400,000 in profit per employee. Big corporations don't care that you need to pay the mortgage and provide for your family. Their goal is to make as much money as possible. And most of the control freaks that run our bloated federal government don't care much about middle class families either. To many politicians and federal bureaucrats, middle class families are "useless eaters" that are constantly damaging the environment with their "excessive" lifestyles. In this day and age, neither the federal government nor the big corporations really have much use for middle class Americans, and that is really, really bad news for the the future of the middle class family in America.
Michigan government unleashes armed raids
on small pig farmers, forces farmer to shoot all his own pigs
by Mike Adams, the Health Ranger - NaturalNews.com
(NaturalNews) NaturalNews can now confirm that the Michigan Department of Natural Resources has, in total violation of the Fourth Amendment, conducted two armed raids on pig farmers in that state, one in Kalkaska County at Fife Lake and another in Cheboygan County. Staging raids involving six vehicles and ten armed men, DNA conducted unconstitutional, illegal and arguablycriminalarmed raids on these two farms with the intent of shooting all the farmers' pigs under a bizarre new "Invasive Species Order" (ISO) that has suddenly declared traditional livestock to be an invasive species.
Insane Michigan government announces plan
to destroy ranch livestock based on hair color
and arrest hundreds of ranchers as felons
by Mike Adams, NaturalNews.com - (March 27, 2012)
(NaturalNews) The state of Michigan is only days away from engaging in what can only be called true "animal genocide" -- the mass murder of ranch animals based on the color of their hair. It's all part of a shocking new "Invasive Species Order" (ISO) put in place by Michigan'sDepartment of Natural Resources(DNR). This Invasive Species Order suddenly and shockingly defines virtually all open-range pigs raised by small family farms to be illegal "invasive species," and possession of just one of these animals is now a felony crime in Michigan, punishable by up to four years in prison.
The Return of Judge Roy Moore
by CHRISTOPHER BRAUCHLI - CounterPunch.org
It's hard to keep Alabama out of the news. Two of its recent newsworthy events deserve attention. The first is its attempt to improve on the Beason-Hammon Alabama Taxpayer and Citizen Protection Act, a 76-page statutory creation as remarkable for its length as for its content that was designed to rid the state of illegal immigrants.
As drafted, the Act prohibits anyone from giving an illegal immigrant a ride to church (or any other place for that matter). In addition, illegal aliens may "not be permitted to enroll in or attend any public postsecondary education institution." Both of those provisions, among some others, were blocked by a federal court whose decision is being appealed. The proposed revisions slightly soften some of the harsher provisions. Among those softened is the protocol to be followed when a law enforcement officer stops someone. Whereas the original legislation required a law enforcement officer to determine the immigration status of anyone stopped by the law enforcement officer for any reason, the determination is now only required if a person is "lawfully arrested or is issued a traffic citation. . . ." Mysteriously, the amendment adds a provision that says when an arrest or citation is issued to the driver, the officer may also inquire as to the citizenship of everyone else in the car even though none of them has been issued a citation or been arrested. Someone smarter than I can explain the logic of that.
The Simple Idea That Is Transforming Health Care A focus on quality of life helps medical providers see the big picture—and makes for healthier, happier patients
By LAURA LANDRO - WSJ.com
A very simple question is changing the delivery of medical care:
How is your health affecting your quality of life?
For decades, numbers drove the treatment of diseases like asthma, heart disease, diabetes, and arthritis. Public-health officials focused on reducing mortality rates and hitting targets like blood-sugar levels for people with diabetes or cholesterol levels for those with heart disease.
Ouch! Decade of Obamacare Will Cost $1,160 billion
By Michael Barone PatriotPost.us
How much will Obamacare -- call it the Patient Protection and Affordable Care Act if you like -- cost over the next 10 years?
More than you've been led to believe, reports Charles Blahous of George Mason University's Mercatus Center. To be specific, he projects it will add $1,160 billion to net federal spending over the next 10 years and at least $340 billion to federal budget deficits in that time.
Secret Service Sex Scandal Upsets Obama Colombia Trip
By Eric Martin and Kate Andersen Brower - Bloomberg.com
President Barack Obama came to Colombia seeking to erase an image of the U.S. in Latin America as over-assertive Yankees who exploit the region at will. He left with the stereotype reinforced.
The sixth Summit of the Americas that concluded yesterday in the Caribbean city of Cartagena was supposed to focus on trade in the Western Hemisphere. Instead, 11 U.S. Secret Service agents became the center of attention after they were sent home for allegations of misconduct involving a prostitute.
'Buffett Rule' fails Senate test vote Democrats vow election-year push
for 30% tax on millionaires
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) — A White House-backed proposal to force millionaires to pay at least 30% of their income in taxes before charity failed a test vote in the Senate on Monday, but Democrats vowed to keep pressing it this election year.
The so-called "Buffett Rule," named after billionaire investor Warren Buffett, needed 60 votes to advance. It got 51.
Banks Hold Down Mortgage Casualties
By MortgageDaily.com - The Sacramento Bee
DALLAS, April 16, 2012 -- /PRNewswire/ -- Thanks to fewer bank failures, mortgage-related casualties fell. If the trend continues, this year's count could land under a hundred for the first time since 2006.
From Jan. 1 through March 31, Mortgage Dailytracked 27 mortgage-related business closings. Among the total were 16 FDIC-insured banks -- including some that weathered the Great Depression. During the same period in 2011, there were 37 mortgage-related casualties. The improvement can be attributed to a decline in bank failures.
Housing policy is holding back America's recovery
By Edward Luce - FT.com
In the coming weeks, Washington will discover whether Edward DeMarco, acting regulator of the Federal Housing Finance Agency, is susceptible to political pressure. Most Americans have not heard of Mr DeMarco. But millions of homeowners will be affected by what he decides. One way or another, that will also apply to his nominal boss, President Barack Obama.
More than four years after the bubble burst, the moribund US housing market has shown signs of life. Much like the welcome but still modest falls in US unemployment, it would be premature to celebrate the housing market's recent stirrings. Just as the US labour market is conditioned by the millions who have dropped out of it, so house prices are anchored by the 11m or so Americans whose homes remain "underwater" (ie houses that are worth less than their mortgages).
U.S. Homebuilder Confidence Fell in April to Three-Month Low
By Alex Kowalski - Bloomberg.com
Confidence among U.S. homebuilders fell in April to a three-month low, a sign the industry is still trying to gain its footing.
The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 25 this month from 28 in March, the Washington-based group said today. Economists projected no change in the index, according to the median forecast in a Bloomberg News survey. Readings below 50 mean more respondents said conditions were poor.
So far High Gasoline Prices are not Affecting Inflation
By Ed Dolan - OilPrice.com
Recently many commentators have worried that rising gasoline prices will derail the fragile recovery of the U.S. economy. The latest inflation report from the Bureau of Labor Statistics shows little sign that any such thing is happening yet.
The headline all-items CPI for urban consumers rose at a 3.54 percent annual rate in March, down from 5.03 percent in February. (I base these rates on the unrounded CPI data supplied by the Cleveland Fed and state monthly data as annual rates.)
Apple Shares Lose Shine
By STEVEN RUSSOLILLO and JONATHAN CHENG - WSJ.com
The meteoric stock-price rise that has propelled Apple Inc. to become the world's most-valuable company is showing signs of faltering, threatening to drag much of the market down with it.
Apple's shares plunged 4.1% on Monday, extending their slide to a fifth consecutive day and sparking worries about whether the maker of iPads and iPhones may be headed for a bigger descent. Apple is now down 9.9% from its intraday peak of $644 hit on April 10, just shy of the 10% level that market watchers call a "correction." On Monday, Apple fell $25.10, to $580.13, in 4 p.m. Nasdaq Stock Market composite trading.
Soros, Trichet and the Asians
By David Marsh, MarketWatch
LONDON (MarketWatch) — Just as financier and philanthropist George Soros was in Berlin last week to warn the Germans of impending doom in economic and monetary union (EMU), Jean-Claude Trichet, former president of the European Central Bank, was swinging through London to tell the English that (with any luck) all will be well.
The remarks of these two luminaries (of which more later) are undoubtedly significant. However, as Europe's innate contradictions over the euro tie it into ever more intractable knots, the field on which the single currency's future will be played out is shifting slowly, but perceptibly, away from European capitals to Asia.
Ron Paul Interviewed by Judge Napolitano
Dr. Ron Paul is a longstanding defender of the constitution. Virtually unbreakable due to his squeaky clean record. The mainstream media and politicians are forced to make up lies to discredit him.
U.S. Midwest hit by storms and tornadoes; 5 dead
By MarketWatch
Tel Aviv (MarketWatch) — Thunderstorms and dozens of tornadoes ran across parts of Iowa, Kansas, Nebraska and Oklahoma on Saturday into Sunday, weekend media reports say.
Five people, including two children, were killed early Sunday after a tornado hit the northwest Oklahoma city of Woodward, CNN reported, citing a spokeswoman for the state Medical Examiner's Office.
A town of about 250 people, Thurman, in southwest Iowa, was about 75% destroyed due to the severe weather, reports said. In Creston, Iowa, southwest of Des Moines, a hospital was hit by winds or a tornado and was damaged, but no patients or staff were hurt, reports say.
Repsol's Cuban Progress an Open Door for U.S.
By Daniel J. Graeber - OilPrice.com
Spanish energy company Repsol said its exploration campaign off the Cuban coast was moving pretty slowly. Started in February despite a backlash from U.S. lawmakers, the Cuban government said the drilling campaign could break its reliance on Venezuelan reserves. After a false start in 2004, Repsol said geological conditions were impeding Cuban developments. Perhaps the slow pace for Repsol provides time for a strategic reset for Washington if it's savvy enough.
India Overtakes China
as Largest Importer of Iranian Crude
By Joao Peixe - OilPrice.com
India has finally overtaken China as the largest importer of Iranian oil during the first quarter of this year. They achieved this due to a surge in buying ahead of the EU sanctions, due to take effect in July, which could severely reduce supply, and the fact that China has reduced its own purchases in a conflict over new contract negotiations.
During the first quarter of 2012 Indian imports were up by 23 percent from 2011 levels of 351,00 barrels per day (bpd) to 433,000 bpd, and more than China's 256,000 bpd. In fact whilst India's imports have increased by 23 percent, China's have fallen by 40.3 percent over the same period.
North Korea's Kim Says His Regime Can't Be Blackmailed
By Sangwon Yoon - Bloomberg.com
North Korea won't be bullied by its nuclear-armed enemies, third-generation dictator Kim Jong Un said in his first public address at a military parade as South Korea warned that his regime may conduct an atomic test.
Dressed in a dark Mao suit and standing on a podium high above Kim Il Sung Square in Pyongyang yesterday, the new leader said, "the days of enemies threatening and blackmailing us with nuclear weapons are forever over." Goose-stepping soldiers, mobile rocket launchers and tanks rumbled through the streets below in a celebration broadcast on state television.
Obama, Rice Condemn North Korea's Failed Missile Launch
After North Korea's much-hyped long-range missile broke apart early Friday, President Obama joined world leaders in denouncing the launch, saying the international community would take further steps to isolate the country. Angus Walker of Independent Television News reports.
Too Early To Talk Success or Failure in Iran Nuclear Talks
By Jen Alic - OilPrice.com
Here is an interesting notion: The Iran nuclear talks in Istanbul were not a "failure", but globally crippling sanctions could be.
Trigger happy Israelis and a US election campaign season that requires the illusion of immediate action effectively hijacked the talks, which opened on Saturday and concluded with a deal to meet again on 23 May in Baghdad.
Sorry for Monday's delay in posting the news. Local ISP out due to 120+ tornados ripping through the midwest over the weekend. EF3 tornado (165mph winds moving NE at 74 mph) touched down (confirmed) at a major intersection, blocks away to my SW, but skipped over my place before ripping off roofs a block away to the NE - couldn't hear the tornado sirens for the loud wind and very heavy rain and hail. Approximately $280M in damage reported so far. 7,300 home still without electricity. I was very fortunate to only have tree and roof damage, thank God. Could have been a lot worse, but things are getting back to normal. ~WebBabe, from the land of OZ.
Gold price action suggests $1600/oz floor,
$1800/oz resistance
NEW YORK (Commodity Online): Gold ended last week under pressure amid profit-taking and dollar strength but prices had gained traction as jewellers on strike in India reopened stores after 20 days and the weaker-than-expected non-farm payrolls data raised the possibility of further quantitative easing.
Recent upticks in gold suggest that a base is in place above our support zone near $1600. A decisive break (couple of closes) above range highs at 1271 (for gold priced in EUR) and 1535 (for gold priced in CHF would provide further evidence that Gold is stabilising. In terms of the USD, breaking above $1700 would encourage a bullish view toward the $1717/$1727 area and, ultimately, the range highs near $1805 which is expected to find selling interest.
Does Gold Ever Pay? Is it fair to characterize gold bullion as an investment...?
By: Adrian Ash - GoldSeek.com
WHY BOTHER investing? Five years into the financial crisis – and more than a decade after the US market hit its big top in real terms – you might well ask. Especially now that cash, bonds, Treasuries and stocks pay between zero and sweet nothing in yield, just like gold bullion.
The aim if not the outcome of investment is simple, however. "Investing [is] the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power – after taxes have been paid on nominal gains – in the future," as Warren Buffett wrote earlier this year to his Berkshire Hathaway shareholders.
Gold pares loss as stocks rise,
dollar trims gains; Silver higher
NEW YORK (Commodity Online): Comex gold has pared its earlier losses as equities turn higher after strong U.S. retail sales data and the U.S. dollar gives up some of its gains, said Dave Meger, director of metals trading at Vision Financial Markets.
As of 9:52 a.m. EDT, the euro had climbed back to $1.3044 from an overnight low of $1.2995, although it remains below $1.3075 from late Friday. June gold was down $6.80 to $1,653.40 an ounce but up from the overnight low of $1,642.
Dollar gains pressure precious metals;
Gold/Platinum spread widens
NEW YORK (Commodity Online): Precious metals collectively are on the defensive as the dollar rises, with the spread favoring gold over platinum widening again, said Commerzbank in a commodity briefing.
According to the bank, some risk aversion in European trade earlier in the day, saying a stronger greenback is weighing on metals prices.
"Some of the other precious metals have fallen more sharply than gold, such as platinum, which has dropped to its lowest price since the end of January," Commerzbank added.
A Trillion Euros Didn't Buy Much Time
By: Rick Ackerman - GoldSeek.com
Europe's bankers will need to think really big the next time they try to construct a proper "mother of all firewalls." A nearly trillion-euro package that was on the table a few weeks ago would combine €440 billion of uncommitted funds from an existing credit "facility" with €500 billion pledged toward a new one. Those may sound like big numbers, but they evidently were not big enough to prevent market forces from roiling Europe's stage-managed bond markets last week. The result was a surge in yields on Spanish debt that spooked U.S. stocks, among others, into their worst weekly decline of 2012.
Time to put the doomed euro out of its misery Europe can't accept that the economics of the single currency condemn it to failure.
By Jeremy Warner - Telegraph.co.uk
There is no mess quite so bad that official intervention won't make it even worse. Nowhere is this old saw more applicable than in the eurozone, where only a month or so back, leaders were warmly congratulating themselves on having seen off the worst of the debt crisis. As is apparent from the events of the past week, these hopes were not just premature, but naive. The crisis is once again intensifying, with the focus of attention switching from Greece to Spain.
Eurozone crisis roars back to savage Spain 'Today the problem is solved," declared French President Nicolas Sarkozy just five weeks ago. "How happy I am a solution to the Greek crisis, which has weighed on the economic and financial situation in Europe and the world for months, has been found."
By Liam Halligan - Telegraph.co.uk
Just when you hoped it really was "solved", the eurozone crisis has roared back on to the global agenda.
Like a lingering bad smell, the fundamental contradictions at the heart of monetary union can be blanked out for a while but refuse to go away. The busted banks, the grotesque indebtedness, the inherent contradictions – in recent days they've all burst back into view.
The War for Spain
By: John Mauldin - GoldSeek.com
I fully intended to ignore Spain this week. Really, truly I did. I had my letter all planned, but then a few notes drew my attention, and the more I reflected on them, the more I realized that the inflection point that I thought the ECB had pushed down the road for at least a year with their recent €1 trillion LTRO is now rushing toward us much faster than ECB President Draghi had in mind when he launched his massive funding operation.So, we simply must pay attention to what Spain has done this week – which, to my surprise, seems to have escaped the attention of the major media. What we will find may be considered a tipping point when the crisis is analyzed by some future historian. And then we'll get back to some additional details on the US employment situation, starting with a few rather shocking data points. What we'll see is that for most people in the US the employment level has not risen, even as overall employment is up by 2 million jobs since the end of the recession in 2009. And there are a few other interesting items. Are we really going to see 2 billion jobs disappear in the next 30 years?
"Euro Crisis Back" as Spanish Yields
Spark "Renewed Market Panic"
while "Less Gold Fever" Seen in China than Last Year
By: Ben Traynor - GoldSeek.com
WHOLESALE gold bullion prices traded just below $1650 an ounce for most of Monday morning's London session – well within the past month's range – as European stock markets edged higher while commodities fell.
The Euro meantime sank to a two-month low against the Dollar, as investors turned their attention to rising Spanish government borrowing costs.
On China's Shanghai Gold Exchange, contracts equivalent to around 7.3 tonnes of gold bullion changed hands in Monday's trading.
Why a visit to the eurozone doctor
won't relieve the pain in Spain So much for the idea that the euro crisis is over! Last week it resurfaced again – with Spain now first in the firing line. How serious is the Spanish problem?
By Roger Bootle - Telegraph.co.uk
Although they share some things in common, each vulnerable euro member's plight is slightly different. The Spanish economy did not get where it is today through a great splurge in public spending and borrowing, as happened in Greece. Indeed, in 2007, the Spanish government's budget was in surplus.
Admittedly, last year it was in deficit to the tune of 8pc of GDP. But this was a response to the collapse of the economy, not the cause of it.
Nicolas Sarkozy lambasts ECB's rigid policies French president Nicolas Sarkozy has lashed out at the hard money policies of the European Central Bank and launched a veiled attack on Germany's austerity drive, hoping to bolster his flagging re-election campaign.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"On the question of the ECB's role in supporting growth, we French are going to open the debate," he told a mass gathering in Paris. "Europe must absolutely return to growth if it is not going to lose its footing in the world economy."
Mr Sarkozy criticised the "fixed rules in the Maastricht treaty", alluding to the ECB's price stability mandate. The US Federal Reserve has a dual mandate linked to both inflation and jobs.
Bank of New York Case
Tests IRS Power to Halt Foreign Tax Abuses
By Megan Murphy and Vanessa Houlder, Financial Times,
and Jeff Gerth - ProPublica.com
In November 2001, Bank of New York, a mid-tier U.S. bank, transferred nearly $8 billion of its own assets to a trust in the small, business-friendly state of Delaware through several layers of newly created companies.
A mixture of home mortgages, shares and other securities, the transferred assets made up almost 10 percent of the bank's total assets at the time. Yet, the transaction was not discussed with BNY's regulators; nor was it noted in the bank's financial statements or annual report. It had little practical effect on the lender's day-to-day operations—the assets continued to be managed and serviced by the same employees in New York.
Is Another Banking Crisis Staring America in the Face?
By John Grgurich, The Motley Fool - DailyFinance.com
Federal Reserve Gov. Daniel Tarullo said something earlier this week that should cause the ears of every adult in the country to prick up: While America's big banks are in better overall shape than they were just before the start of the 2008 financial crisis, there's still "room for improvement at virtually every firm."
Considering how quickly the big banks started to circle the drain after Lehman Brothers filed for bankruptcy in September 2008, saying the banks are in better shape today than they were then isn't saying much at all.
Jim Yong Kim secures World Bank job
amid criticism of US domination of role Seoul-born Kim beats Nigerian finance minister Ngozi Okonjo-Iweala, who said the decision was not made on merit
By Dominic Rushe - Guardian.co.uk
The World Bank named Korean-born doctor Jim Yong Kim as its new president today amid criticism that the role had once more gone to a US-nominated candidate.
The 52-year-old president of Ivy League college Dartmouth beat Nigerian finance minister Ngozi Okonjo-Iweala to the post, the first time in the World Bank's history that the US candidate has faced a serious challenge.
Can the Innovator Class Save Healthcare? TEDMED brought a relentless optimism about healthcare reform to a city of tired ideas. More is needed, however, to make a difference in Washington, DC.
By David Ewing Duncan - TheAtlantic.com
WASHINGTON, DC - Perched on the banks of the Potomac River, the TEDMED gathering weighed in last week on what it considered the greatest challenges facing healthcare.
A meeting closely associated with the high tech-optimism of Silicon Valley and other outposts of America's innovator class, TEDMED came east this year from it's previous home in San Diego. The idea was to bring the gathering's ethos and its troupe of entrepreneurs, thinkers, futurists, doers, and artists to our nation's political capital.
25 Signs That America
Is A Seething Cesspool Of Filth And Corruption
By Michael Snyder - EndOfTheAmericanDream.com
Do you believe that America is a seething cesspool of filth and corruption? If not, you might change your mind after reading this article. Sadly, the truth is that the United States is absolutely corrupt to the core. This is true from the very top of our society all the way to the very bottom. The current occupant of the White House will likely go down in history as the most corrupt president in history, and that is really saying something. Almost every single day he adds something new to his list of corrupt deeds. He is a con man that deserves to be impeached for a whole host of reasons, but that will never happen because we have a Congress that is also deeply corrupt. But it is not just our politicians that are corrupt. Even the men that are supposed to be in charge of protecting the president are corrupt. A whole bunch of them were recently discovered sleeping with prostitutes in Colombia. We also find very deep and very pervasive corruption in our financial institutions, in our judicial system, in our police departments and in our religious institutions. It is almost as if nearly the entire nation is saturated with filth and depravity. It is becoming harder and harder to find men and women of integrity, and our young people have very few positive role models to look up to. How long is our society going to be able to continue to function normally if all of this corruption gets even worse?
House members demand answers
over taxpayer-funded parties
By Paige Winfield Cunningham-The Washington Times
Extracting shaken apologies from officials involved in a recent scandal where federal workers partied in Las Vegas on taxpayer dollars, House lawmakers grilled them Monday on why they let the misspending go on for months while awarding a hefty bonus to the rendezvous' organizer.
"I personally apologize to the American people — as the head of the agency I am responsible," saidMartha Johnson, former head of the General Services Administration who resigned when the agency's spending spree surfaced nearly two weeks ago. "I will mourn for the rest of my life the loss of my appointment."
US and China engage in cyber war games Exclusive: US and Chinese officials take part in war games in bid to prevent military escalation from cyber attacks
By Nick Hopkins - Guardian.co.uk
The US and China have been discreetly engaging in "war games" amid rising anger in Washington over the scale and audacity of Beijing-co-ordinated cyber attacks on western governments and big business, the Guardian has learned.
State department and Pentagon officials, along with their Chinese counterparts, were involved in two war games last year that were designed to help prevent a sudden military escalation between the sides if either felt they were being targeted. Another session is planned for May.
Beware the Closed Internet, Google Founder Says
Truthdig.com
In launching a seven-day special investigation into the battle among states, corporations and public advocates for control over the Internet, The Guardian interviewed Google co-founder Sergey Brin, who warned of the isolating effect of online "walled gardens" put up by companies such as Facebook and Apple. —ARK
The Guardian:
He said he was most concerned by the efforts of countries such as China, Saudi Arabia and Iran to censor and restrict use of the internet, but warned that the rise of Facebook and Apple, which have their own proprietary platforms and control access to their users, risked stifling innovation and balkanising the web.
And You Thought It Was Just 'Pink' Slime
by Lena Groeger - ProPublica.com
"Lean finely textured beef," aka "pink slime," sparked an uproar when the USDA bought 7 million pounds of the stuff for school lunches. The agency maintains it's safe and healthy; critics say it's not fit to eat. But the burger filler isn't new, nor is it the only way that meat packers maximize production. Here's how it stacks up against two other mechanical processes.
Sixth person dies in Oklahoma town
after tornadoes tear through midwest Authorities say warning sounds may in Woodward have been disabled in lightning strike, giving residents no notice of twister
Associated Press - Guardian.co.uk
A state emergency official says a sixth person has died after a tornado ripped through the northwest Oklahoma town of Woodward.
The Oklahoma department of emergency management spokeswoman Keli Cain could not provide details about the victim's gender or age Monday.
Two men and three children were also killed in the tornado that hit the town in the early hours of Sunday, part of a storm system that stretched from Texas to Minnesota and spawned more than 120 twisters.
First They Come for the Muslims
By Chris Hedges - Truthdig.com
Tarek Mehanna, a U.S. citizen, was sentenced Thursday in Worcester, Mass., to 17½ years in prison. It was another of the tawdry show trials held against Muslim activists since 9/11 as a result of the government's criminalization of what people say and believe. These trials, where secrecy rules permit federal lawyers to prosecute people on "evidence" the defendants are not allowed to examine, are the harbinger of a corporate totalitarian state in which any form of dissent can be declared illegal. What the government did to Mehanna, and what it has done to hundreds of other innocent Muslims in this country over the last decade, it will eventually do to the rest of us.
Why Washington's Iran Policy Could Lead to Global Disaster
By Juan Cole, TomDispatch - Truthdig.com
It's a policy fierce enough to cause great suffering among Iranians—and possibly in the long run among Americans, too. It might, in the end, even deeply harm the global economy and yet, history tells us, it will fail on its own. Economic war led by Washington (and encouraged by Israel) will not take down the Iranian government or bring it to the bargaining table on its knees ready to surrender its nuclear program. It might, however, lead to actual armed conflict with incalculable consequences.
Egyptians Rally Against Suleiman
Truthdig.com
Of all the people to step in and take the still-revolutionizing nation of Egypt to another level in its post-Arab Spring era, former President Hosni Mubarak's intelligence chief Omar Suleiman probably isn't the man for the job. And many Egyptians, thousands of whom gathered in Tahrir Square for a protest Friday, are registering their displeasure about Suleiman's bid to become Egypt's next president.
BBC:
The protest in Tahrir Square, in central Cairo, was called by the Muslim Brotherhood and other Islamist groups.
They want Egypt's military rulers to approve a law banning former top Mubarak-era officials from standing.
Bernanke's Warning:
We Stand on the Precipice of Economic Destruction
By Kurt Nimmo - Infowars.com
Earlier this week, Federal Reserve boss Ben Bernankeagain warned that out of control borrowing and spending will eventually destroy the country.
Said Ben to the the Budget Committee:
Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on U.S. output, incomes, and standards of living. Moreover, diminishing investor confidence that deficits will be brought under control would ultimately lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil. In a vicious circle, high and rising interest rates would cause debt-service payments on the federal debt to grow even faster, resulting in further increases in the debt-to-GDP ratio and making fiscal adjustment all the more difficult.
But here is something Bernanke didn't mention – a large chunk of that debt is owed to the Federal Reserve. In February, the corporate media fessed up to this undeniable fact. From CNBC:
IMF: Gold Is Scarce "Safe Asset"
and "Growing Shortage of Safe Assets"
BY MARK O'BYRNE - FionancialSense.com
Gold fell $0.90 or 0.05% in New York yesterday and closed at $1,658.10/oz. Gold has been trading sideways in Asian trading and remains in a tight range in Europe this morning near $1,656.07/oz.
Gold remains supported this morning as the ECB signalled that it would intervene in the debt markets on worries about Spain and the risk of contagion in the Eurozone. ECB board member Benoit Coeure said "the European Central Bank still has its bond-buying programme as an option".
Contra Bernanke on the Gold Standard
Mises Daily: by Frank Shostak
In his lecture at George Washington University on March 20, 2012, Federal Reserve chairman Ben Bernanke said that under a gold standard the authorities' ability to address economic conditions is significantly curtailed. The Fed chairman holds that the gold standard prevents the central bank from engaging in policies aimed at stabilizing the economy after sudden shocks. This in turn, holds the Fed chairman, could lead to severe economic upheavals. According to Bernanke,
Since the gold standard determines the money supply, there's not much scope for the central bank to use monetary policy to stabilize the economy.… Because you had a gold standard which tied the money supply to gold, there was no flexibility for the central bank to lower interest rates in recession or raise interest rates in an inflation.
Gold rallies on hopes for more easing
By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rose on Thursday, getting a boost from a weaker dollar and rising U.S. stocks and as talks surfaced of another round of economic stimulus in the U.S. and elsewhere.
Gold for June delivery rallied $20.30, or 1.2%, to settle at $1,680.60 an ounce on the Comex division of the New York Mercantile Exchange
Other precious and base metals also benefitted, with silver leading gains.
Support was underpinned by a weaker dollar and rising U.S. stocks, analysts said.
China buying gold? India has not recovered — so why the rebound?
By Peter Brimelow, MarketWatch
NEW YORK (MarketWatch) — Gold's rebound puzzles the bugs — but they'll take it anyway.
It helps to have luck — or something! Michael Gayed's brave column yesterday, "Was that the bottom in gold?, published just after gold closed with an impressive $16.80 rise in the CME June gold contract, was not followed by an immediate reversal. June gold closed today down only 40 cents, so the gains were held. See April 10 column.
In contrast, my own recent cheerful chat about gold was followed by a horrible $57.90 drop in gold the next day.
Gold, Inflation, Other Factors!
by Ian R. Campbell - StockResearchPortalBlog.com
Why Read This: Because it is a balanced article on physical gold that those who now own it, or are considering owing it, ought to read.
Featured Article: An April 11 article questions whether physical gold indeed is "the ultimate inflation hedge". In essence, the article says:
• one reason investors purchase gold is because it is considered a hedge against inflation;
• in its 2012 Investment Returns Yearbook, Credit Suisse Global says gold "can fail" and there's history to prove it;
• finding assets that protect purchasing power is the primary reason for investors to attempt to hedge;
Keiser Report: Return of the Silver Liberation Army (E273)
In this episode, Max Keiser and co-host, Stacy Herbert, discuss the return of the Silver Liberation Army as JP Morgan's Blythe Masters claims the bank does not manipulate silver prices. They also discuss JP Morgan's 'London whale' breaking the credit default swap (CDS) index market with massive prop position. In the second half of the show Max talks to author, Pierre Jovanovic, about Blythe Masters role at JP Morgan and the similarities between the world today and France of the 18th century on the eve of revolution.
The War at the End of the Dollar
BY RON HERA - FinancialSense.com
The history of the U.S. dollar is closely linked to U.S. involvement in a series of wars. The Bretton Woods Accord and the resulting world reserve currency status of the U.S. dollar were both byproducts of World War II (1939-1945). The Korean War (1950-1953) was followed six years later by the Vietnam War (1959-1975) which led to the end of the Bretton Woods system. Unfettered by the constraint of gold backing after 1971, the U.S. dollar became a weapon in the Cold War (1945–1991) between the U.S. and the former Union of Soviet Socialist Republics (U.S.S.R.). Each war corresponded with an increase in the U.S. money supply. The Gulf War (1990-1991) was followed by wars in Afghanistan, beginning in 2001, and in Iraq, beginning in 2003, and, simultaneously, by the U.S.-led War on Terror that began in 2001. Like the wars that came before them, the recent staccato of U.S. wars is correlated with increases in the U.S. money supply. The Iraq war, for example, is estimated to have cost as much as $4 trillion.
Dollar falls after Fed comments, Italian auction Italy's bond sale comes as 'hardly a ringing endorsement'
By Deborah Levine and William L. Watts, MarketWatch
NEW YORK (MarketWatch) — The U.S. dollar declined Thursday after a second Federal Reserve official highlighted risks to U.S. economic growth, remaining lower against the euro after Italy managed to sell benchmark three-year bonds and other debt in a closely watched auction.
The Australian dollar was one of the best performers of the day after stronger-than-expected Australian jobs data.
Time to put the doomed euro out of its misery Europe can't accept that the economics
of the single currency condemn it to failure.
By Jeremy Warner - Telegraph.co.uk
There is no mess quite so bad that official intervention won't make it even worse. Nowhere is this old saw more applicable than in the eurozone, where only a month or so back, leaders were warmly congratulating themselves on having seen off the worst of the debt crisis. As is apparent from the events of the past week, these hopes were not just premature, but naive. The crisis is once again intensifying, with the focus of attention switching from Greece to Spain.
The European Central Bank's flooding of the banking system with cheap money didn't solve the problem, or provide more than short-term relief for its symptoms. After a brief period of remission, they are returning. At best, the ECB bought a little time. This has not been used well. Instead, the eurozone has just ploughed on with the same old set of failed policies.
IMF may need less money to rebuild warchest: Lagarde
(Reuters) - The International Monetary Fund is considering scaling back how much money it needs to rebuild its war chest for handling financial crises, and it may not strike a deal with members next week, the IMF head said on Thursday.
"We need to cautiously reassess, and yes we are reassessing to a lower number in terms of risk, which will bring me to probably reassess a lower number of additional resources needed. I am not fixated on any particular number yet," IMF managing director Christine Lagarde said.
Euro crisis enters a more lethal phase Europe's future is not up to the Bundesbank
By George Soros - FT.com
Far from abating, the euro crisis has recently taken a turn for the worse. The European Central Bank relieved an incipient credit crunch through its longer-term refinancing operations. The resulting rally in financial markets hid an underlying deterioration; but that is unlikely to last much longer.
The fundamental problems have not been resolved; indeed, the gap between creditor and debtor countries continues to widen. The crisis has entered what may be a less volatile but more lethal phase.
At the onset of the crisis, the eurozone's break-up was inconceivable: assets and liabilities denominated in the common currency were so intermingled that it would have caused an uncontrollable meltdown. But, as the crisis has progressed, the eurozone has been reoriented along national lines.
Will There Be A "Corralito" In Spain? How Spain could exit the eurozone—a practical guide.
By Gonzalo Lira - Blogspot.com
In late 2001, while everyone was in shock over 9/11, the Argentines were going through a little shock of their own: The "Corralito".
Argentina was bankrupt, a product of a stagnant economy, rampant crony-corruption, and—most important of all—of having its currency fixed to the dollar. This currency peg had created a huge credit bubble, and of course massive capital outflows as a result, eventually leading to the depletion of foreign reserves by the government and an inability to raise more funds on the open markets.
In other words, sovereign bankruptcy.
24 Outrageous Facts About Taxes
In The United States That Will Blow Your Mind
By Michael Snyder - TheEconomicCollapseBlog.com
The U.S. tax code is a complete and utter abomination and it needs to be thrown out entirely. Nobody in their right mind would ever read the whole thing - it is over 3 million words long. Each year, Americans spend billions of hours and hundreds of billions of dollars trying to comply with federal tax requirements. Sadly, it is the honest, hard working Americans in the middle class that always get hit the hardest. The tax code is absolutely riddled with loopholes that big corporations and the ultra-wealthy use to minimize their tax burdens as much as possible. Many poor people do not pay any income taxes at all. The dishonest are rewarded for cheating on their taxes (if they can get away with it) and the ultra-wealthy have moved trillions of dollars to offshore tax havens where they can avoid U.S. taxation altogether. Our system is incredibly unfair to the millions of hard working people in the middle class and upper middle class that drag themselves out of bed and go to work each day and try to do the right thing. In addition, the current U.S. tax system is incredibly inefficient, it diverts a tremendous amount of resources away from more valuable economic activities, and it has chased thousands of businesses and trillions of dollars out of the United States. The U.S. tax code is such a complete and utter mess at this point that it can never be "fixed". The only rational thing to do is to abolish it completely, and any politician that tells you otherwise is lying to you.
Keiser Report: Somali Style! (E274)
In this episode, Max Keiser and co-host, Stacy Herbert debt fondue and Central Banks. They also talk about Somalia's stable shilling and the lesson it holds for Europe. In the second half of the show Max talks to professor and economist, Constantin Gurdgiev about the new book of essays he's edited - What if Ireland defaults? They discuss the good cop, bad cop routine by the Troika in Ireland and what lessons can be drawn from the Russian default of the late 90's.
"There are many good reasons to believe that the 5.5 million foreclosures we have seen are barely halfway through their full course. The United States may end up with a total of 8-10 million foreclosures before we are finished." – Barry Ritholtz, The Big Picture
It all gets down to supply and demand. The banks have been keeping millions of homes off the market until a settlement was reached in the $25 billion robosigning scandal. Now that the 49-state deal has been finalized, the banks are preparing to put more of their of distressed homes up for sale. That will lead to lower prices and the next leg down in the 6-year long housing crisis.
According to Reuters, new foreclosures "begun by Deutsche Bank were up 47 percent from 2011. Those of Wells Fargo's rose 68 percent and Bank of America's, including BAC Home Loans Servicing, jumped nearly seven-fold — 251 starts versus 37 in the same period in 2011."
Could the Housing Bubble Reinflate?
By Karl Smith - TheAtlantic.com
My baseline scenario for the U.S. included a rapid increase in the number of multifamily housing units and a general return to renting.
However, a few factors are combining to make me think that an alternate scenario, one in which the single-family housing bubble returns, is increasingly likely.
First, multifamily starts simply aren't increasing as fast I thought they would. This means that rent pressure will be even more severe, and quite plainly there simply won't be enough apartments to absorb all of the newly forming families.
IMF chief Lagarde calls for U.S. mortgage relief
By Howard Schneider - WashingtonPost.com
International Monetary Fund chief Christine Lagarde called on the U.S. government to reduce the mortgage debt owed by homeowners as a way help to revive the nation's economy and stimulate growth in the wider industrialized world.
Speaking Thursday at the Brookings Institution, Lagarde urged that this relief be extended to loans held by mortgage giants Fannie Mae and Freddie Mac. The issue of whether to reduce mortgages held by Fannie Mae and Freddie Mac, representing more than half of U.S. home loans, has become contentious in Washington in recent months.
Homeless Americans on the rise
By Lisa Karpova - Pravda.ru
Millions of Americans may lose homes for debt
Millions of Americans are at risk of losing their homes due to mortgage debt. The finding is by a group of experts from the International Monetary Fund, haning prepared an analytical report on the prospects of the global economy.
"About 2.5 million owners of apartments and homes in the U.S. have lost their homes. Other 1,500,000 have systematically gotten behind on payments . So they, too, are in danger of their losing homes," the report says.
Southern California rental market getting more expensive The average L.A. County rent is predicted to soar nearly 10% by the end of 2013. Rising rents could help usher in a housing market recovery if enough renters take the plunge into buying.
By Alejandro Lazo, Los Angeles Times
The average Los Angeles County rent is predicted to soar nearly 10% over the next two years, leading a resurgence of the costly Southland apartment lifestyle.
Southern California's economic recovery may be halting and tepid, but young workers gaining new employment, a demand for apartment living and scarce construction of units are creating a rental squeeze in the region, according to a report released Wednesday by USC's Lusk Center for Real Estate.
Obama Hammered for 'Jetting Around,'
Taking Vacations While Americans Suffer
BY DANIEL HALPER - WeeklyStandard.com
President Obama, during an interview with St. Louis's KMOV, was hammered for "jetting around, [taking] different vacations and so forth, sometimes ... under the color of state business." The interviewer, Larry Conners, suggested even that folks "get frustrated, even angered" seeing the president take these trips, and told Obama that these Americans think he's "out of touch, that [Obama doesn't] really know what they're experiencing right now."
Obama healthcare could worsen U.S. debt: Republican study
By John Crawley
(Reuters) - Instead of curbing government spending, President Barack Obama's healthcare law could add up to $530 billion to the federal debt over ten years, a Republican expert on U.S. government benefit programs said on Tuesday.
A study by Charles Blahous, a George Mason University research fellow and the Republican trustee for the Medicare and Social Security entitlement programs for the elderly, challenged the administration's contention that the 2010 law would reduce healthcare costs.
What's next? Step One after Obamacare Even before Election Day,
block grants are cleaning up Democrats' mistake
By Grace-Marie Turner - WashingtonTimes.com
Obamacare is on the rocks, and the heart of the law - the individual mandate - or the whole thing could be struck down by the Supreme Court. Whatever the court does, the voters could finish the job in November.
In anticipation, a great deal of work is being done behind the scenes on Capitol Hill, in the states and in the think-tank community to talk about what's next.
Medicaid reform is at the top of the list. Medicaidis the worst health care program in the country - a dismal program that finances care for low-income Americans but condemns them to long waits in emergency rooms to get even routine care. The program pays doctors so little and requires so much paperwork that few can afford to see more than a few Medicaid patients.
Profiling the Supremes
by ELAINE CASSEL - CounterPunch.org
As a lawyer and teacher of psychology, I have more than a passing interest in the intersection of behavior and the law. Three days of Supreme Court hearings on the Affordable Care Act (ACA) were an intellectual feast for me. The first time I listened to the audio tapes, the day of their release, I was riveted by the legal arguments, which ran the gamut from profound and compelling, to specious and ridiculous. On second listening, more leisurely and over the weekend via C-Span Radio, I was struck by how personality traits were conveyed in the justices' comments and questioning.
This was particularly apparent in the arguments in the afternoon of Day 3, when the state of Florida argued that the required Medicaid expansion was so coercive that it had to be stricken (unless, of course, the court threw out the entire law, in which case the argument is moot). Little attention has been paid to this afternoon of argument, perhaps because the issue was not as sexy as the individual mandate and severability. In short, the law requires the states to significantly expand access to Medicaid. The federal government will pay 90% of the cost. If the states don't expand access, the Secretary of Health and Human Services, who administers Medicaid, may withdraw funds from the states for services not included in the ACA.
The Kochs Don't Appreciate Being a Liberal Caricature The conservative industrialists continue to play a totemic role in leftist demonology, but they don't have to like it.
By Molly Ball - TheAtlantic.com
At this point, the status of the Koch brothers as figures of cartoonish conservative evil in the liberal imagination is well cemented. They've become shorthand, to those on the left, for the craven, heartless greed of the unfettered capitalistic impulse -- stock figures in Democratic efforts to rile up the base. But this is not how the Kochs see themselves, it turns out. And so Charles and David Koch continue to wage a battle, probably fruitless, to fight what they see as their unfair demonization.
DAMNED LIARS AND SOCIAL SECURITY
by Dale Coberly - AngryBearBlog.com
There are liars, damned liars, and "non partisan experts." The non partisan experts are expert liars, "non partisan" because that's the best lie of all. A damned liar need not be an expert, but he is usually pretty clever at mixing "true" facts, or at least "facts you can't prove are not true," with false implications that lead the people he wants to deceive into hurting themselves with false conclusions. Those false conclusions are ideally tied to other ideas that the mark really, really wants to believe, so he is never really able to let go of the lie he has been taught.
The 10 Fastest Dying Industries in America
By DailyFinance Staff
The rise of cheap imports, technological advancements and the financial crisis have collectively delivered a harsh blow to some U.S. industries.
IBISWorld is out with a list of 10 American industries that have seen sharp revenue declines, a fall in industry participants and a declining life cycle stage between 2002 and 2012.
Some of the worst hit industries include newspaper publishing, women's and girls apparel manufacturing and appliance repair industries.
Jobless claims cast cloud on labor market
By Lucia Mutikani
(Reuters) - The number of Americans filing for jobless aid hit a two-month high last week and more applications were received in the prior week than initially reported, suggesting a cooling in the labor market recovery.
Initial claims for state unemployment benefits increased 13,000 last week to a seasonally adjusted 380,000, the Labor Department said on Thursday, defying economists' expectations of a drop to 355,000. The prior week's count was revised to show 10,000 more applications than previously reported.
US adds 13,000 to unemployment rolls
in latest disappointing claims report Some economists had expected jobless benefits claims to fall, but increase is instead the largest in nearly a year
By Dominic Rushe in New York - Guardian.co.uk
The number of new claims for unemployment benefits rose unexpectedly last week in another sign of the fragility of the recovery in the US jobs market.
Initial claims for state unemployment benefits rose 13,000 to 380,000 in the week ending 7 April, the largest rise in nearly a year, the labor department said. Economist polled by Reuters had been expecting claims to fall to 355,000.
Sony to cut 10,000 jobs, turn around TV business
By Malcolm Foster - WashingtonTimes.com
TOKYO (AP) — Faced with mounting losses,Sony Corp. said Thursday it will slash 10,000 jobs, or about 6 percent of its global workforce, and try to turn around its money-losing TV business over the next two years.
New CEO and President Kazuo Hirai outlined his business strategy at a big press conference where he pledged to revive the electronics and entertainment company. Sony earlier this week more than doubled its annual net loss projection for the fiscal year through this past March to 520 billion, or $6.4 billion. That would be its fourth straight year of red ink and worst loss ever.
Tom Woods Hosts the Peter Schiff Show, April 10, 2012
Tom Woods interviews authors Jeffrey Tucker and Bill Kauffman; they talk Ron Paul, the miraculous but despised free market, decentralism, Steve Jobs, and more
Catholic bishops issue 'call to action' on religious freedom
By Julian Pecquet - TheHill.com
All Americans should be "on guard" as the Obama administration threatens religious liberty, the U.S. Conference of Catholic Bishops declared Thursday.
The call to action is spelled out in a document, "Our First, Most Cherished Liberty," developed by the conference's Ad Hoc Committee on Religious Liberty. It urges laity to work to protect the First Amendment and calls on dioceses across the country to schedule a "religious liberty fortnight" June 21 to July 4 to focus "all the energies the Catholic community can muster" for religious liberty.
Can Online Education Be Both Successful and Good for Us?
By Kanyi Maqubela - TheAtlantic.com
We're witnessing the beginning of a much-needed revolution in education.
What would it take to create wildly profitable, culturally effective online education system? How could the system reflect the marketplace demands of an era of technology, and provide tangible resources for students to find and create opportunity? What would that look like?
Chances are it would not look quite like either the online education kingpin, University of Phoenix, or the many startups in the space. But there are elements from each that might make their way into a truly effective online educational system.
Are schools Facebook's next conquest? Facebook, the Dark Horse in the Education Revolution
Its return to the past could reveal the network's future.
By Megan Garber - TheAtlantic.com
Facebook, famously, started as a service for college students -- a phenomenon of, by, and for the particular social setting of the American university. Back in the early days of TheFacebook, a dot-edu email address was a ticket to a web platform that promised its members a new kind of public intimacy: There was sharing, yes, but it was sharing that was confined to a select group of classmates and friends. In the early days of the service, you could post a photo of a night out without fear of your Aunt Millie seeing and/or commenting on said photo.
Is Facebook Making Us Lonely? Social media—from Facebook to Twitter—have made us more densely networked than ever. Yet for all this connectivity, new research suggests that we have never been lonelier (or more narcissistic)—and that this loneliness is making us mentally and physically ill. A report on what the epidemic of loneliness is doing to our souls and our society.
By STEPHEN MARCHE - TheAtlantic.com
YVETTE VICKERS, A FORMER Playboy playmate and B-movie star, best known for her role in Attack of the 50 Foot Woman, would have been 83 last August, but nobody knows exactly how old she was when she died. According to the Los Angeles coroner's report, she lay dead for the better part of a year before a neighbor and fellow actress, a woman named Susan Savage, noticed cobwebs and yellowing letters in her mailbox, reached through a broken window to unlock the door, and pushed her way through the piles of junk mail and mounds of clothing that barricaded the house. Upstairs, she found Vickers's body, mummified, near a heater that was still running. Her computer was on too, its glow permeating the empty space.
Argentina poised to seize Repsol assets,
endangering shale dream Argentina was poised on Thursday night to launch the forced takeover of assets from the Spanish energy group Repsol, risking a diplomatic showdown with Spain and scaring investors needed to unlock the country's vast shale gas reserves.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Spain's industry minister Manuel Soria said Madrid would not stand idly by if Spanish companies are attacked. "If there are hostile moves towards those interests anywhere in the world, the government will interpret them as hostile moves against Spain. These acts of hostility will have consequences."
The clash came as Argentina's leader Cristina Fernandez prepared a TV address to announce the fate of YPF, the Argentine oil group controlled by Repsol. Argentina's press said President Fernandez plans to seize YPF on "public interest" grounds, invoking the country's hydro-carbon law to gain majority control. She has been tightening the noose on Repsol over recent months by withdrawing operating licences, accusing Repsol of failure to invest adequately in its Argentine operations. The company denies the claim.
Beijing's power struggle is bigger than America's The backdrop to the events surrounding Bo Xilai is provided by a huge debate about the country's future
By Martin Jacques - Independent.co.uk
The news that Bo Xilai has been stripped of his positions on the Communist Party Politburo and Central Committee and that his wife, Gu Kailai, is being held on suspicion of murdering a British businessman has added a dramatic new twist to a story that first began to break in February. The dismissal of Bo, the former Chongqing party chief, surely marks the end of his political career. It also suggests that the path to the crucial Communist Party Congress in the autumn, when, in effect, a new President and Premier will be elected and seven of the nine-member standing committee that runs China will be replaced, could run somewhat smoother.
Iran nuclear program talks
reveal internal divisions between diplomats World powers at odds on key issues
ahead of nuclear talks with Iran
By Joby Warrick and Thomas Erdbrink - WashingtonPost.com
ISTANBUL — The six world powers gathering here for nuclear talks beginning Friday are finding themselves divided over how best to curb Iran's ambitions while defusing the possibility of a new military confrontation in the volatile Middle East.
Officials from the six countries that will bargain with Iran have acknowledged in recent days significant differences over what a nuclear accord should look like and under what conditions Iran could be granted partial relief from international sanctions that have put an unprecedented squeeze on the economy there.
Clinton Warns North Korea
of Consequences of Missile Launch
By Nicole Gaouette and Sangwon Yoon - BusinessWeek.com
U.S. Secretary of State Hillary Clinton urged North Korea to "refrain from provocation" and warned of consequences if it doesn't, as the first day of North Korea's timetable to fire a long-range rocket passed.
"We urge the North Korean leadership to honor its agreements and refrain from pursuing a cycle of provocation," Clinton said yesterday after a meeting in Washington of foreign ministers from the Group of Eight -- Russia, Italy, the U.K., France, Canada, Japan, Germany and the U.S.
North Korea Rocket Launch Countdown — Day One Over
By WSJ Staff - WSJ.com
Japan has been holding its collective breath Thursday morning, waiting for news that North Korea had launched — over some of its southernmost islands — what North Korea says is a satellite and Japan, the U.S. and South Korea say is a missile.
The news at high noon on day one of the April 12-16 launch window: "No movement," as one Japanese TV network reported. North Korea has said it will confine the launch to a time frame between 7 a.m. and noon, local time.
This one fizzled... North Korea launches long-range rocket US and South Korean officials report that the launch from a base in the north-west of the country has failed
Staff and agencies - Guardian.co.uk
North Korea has launched a long-range rocket, according to US and South Korean officials. In Washington, officials said the launch from a base in the north-west of the country has crashed into the sea.
UN security council will meet to discuss the rocket launch and a possible response, according to reports.
There was no word from Pyongyang about the launch of what they describe as an observation satellite.
The Ring Of Fire Is Roaring To Life
And There Will Be Earthquakes Of Historic Importance
On The West Coast Of The United States
By Michael Snyder - EndOfTheAmericanDream.com
Does it seem to you like there has been an unusual amount of seismic activity around the world lately? Well, it isn't just your imagination. The Ring of Fire is roaring to life and that is really bad news for the west coast of the United States. Approximately 90 percent of all earthquakes and approximately 75 percent of all volcanic eruptions occur along the Ring of Fire. Considering the fact that the entire west coast of the United States lies along the Ring of Fire, we should be very concerned that the Ring of Fire is becoming more active. On Wednesday, the most powerful strike-slip earthquake ever recorded happened along the Ring of Fire. If that earthquake had happened in a major U.S. city along the west coast, the city would have been entirely destroyed. Scientists tell us that there is nearly a 100% certainty that the "Big One" will hit California at some point. In recent years we have seen Japan, Chile, Indonesia and New Zealand all get hit by historic earthquakes. It is inevitable that there will be earthquakes of historic importance on the west coast of the United States as well. So far we have been very fortunate, but that good fortune will not last indefinitely.
Why Gold Prices Should Thrive
BY FRANK HOLMES - MoneyMorning.com
Last week was a challenging one for gold investors. Gold prices have been on the downside.
Although the yellow metal has been on a spectacular 11-year bull run, recent strength in the economy has some thinking gold's heyday is over.
As I often say, investing, like life, is about managing expectations-even throughout gold's decade-long rise, price action over the short term can go both ways.
It helps to look at what happens after short-term drops.
For example, looking at the past decade of one-day 5% declines in gold, you can see that this event is pretty rare.
In 2006, gold dropped more than 5% in a day only two times. In 2008, there were three such events.
US Mint Gold and Silver coins sales bounces back in March
NEW YORK (Commodity Online): United States Mint reported that the sales of gold and silver coins bounced back in March this year from February but remained well below January's levels. The US Mint has sold 10,459,000 ounces of silver and 214,500 ounces of gold till March.
The Sales of gold American Eagle coins at the U.S. Mint nearly tripled to 62,500 troy ounces in March, from 21,000 troy ounces in February. Sales of silver Eagle coins rose 70% to 2,542,000 troy ounces in March, from 1,490,000 in February.
Weak Dollar, Strong Dollar The U.S. strong dollar policy is not strong enough.
By EMIL W. HENRY, JR. - The American Spectator.org
The Obama administration says it supports a strong dollar, but its major fiscal initiatives suggest otherwise. As our currency erodes, the U.S. strong dollar policy needs to be enhanced so those who claim its mantle are held accountable to achieve it.
The current strong dollar policy originated with Treasury Secretary Bob Rubin in 1995. There was logic for the policy at that time amidst a declining U.S. currency. Afterward, in the latter 1990s, a strengthening dollar coincided with a period of growth and prosperity.
As U.S. Debt Soars, Dollar May Lose Reserve Status
By SCOTT S. POWELL - Investors.com
European debt problems have received a lot of media attention, but it is the debt problem in the U.S. that is far more likely to precipitate a global crisis.
Former U.S. Treasury official Lawrence Goodman sounded the alarm recently when he noted that investors are shunning low-yielding U.S. Treasuries, forcing the Fed to buy "a stunning ... 61% of the total net issuance of U.S. government debt."
His view that ballooning deficits and excessive debt put the U.S. economy and markets at risk for a sharp correction also explains why recovery is so weak and why trillions of dollars remain sidelined.
The other dimension to the story that may trigger the next financial crisis is the loss of the reserve currency status of the U.S. dollar.
Prosperity That Feels Like Austerity
By Steven Malanga - RealClearMarkets.com
The city of San Jose is faring much better these days than it has in recent years. Gallup's latest Job Creation Index, which measures residents' reports of hiring in the 50 largest metro areas, found people in San Jose describing among the most bullish employment scenarios in the nation. No aging industrial city, San Jose already boasts a median annual household income at nearly $77,000 that is well above the national average, and the city is positioned in Silicon Valley to be a part of any robust new economy that emerges.
Fed's Yellen makes case for keeping rates low More asset purchases only if economy worsens, official says
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — The Federal Reserve's number-two ranking official on Wednesday made the case for keeping interest rates low for some time, arguing the economy will continue to grow only gradually and that the unemployment rate will remain high for years.
Janet Yellen, the Fed's vice chair, didn't argue for a new round of asset purchases. A current program of shifting $400 billion of short-term securities into longer-dated ones is due to end in June, and the Fed's balance sheet has swelled to nearly $3 trillion.
Europe's banks beached as ECB stimulus runs dry The European Central Bank's €1 trillion (£824bn) lending spree over the winter has stored up a host of fresh problems, leaving parts of the banking system more vulnerable than before as the short-term "sugar rush" nears exhaustion.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Credit experts say the Spanish and Italian banks are trapped with large losses on sovereign bonds bought with ECB funds under the three-year lending programme, or Long-Term Refinancing Operation (LTRO).
Andrew Roberts, credit chief at RBS, said Spanish banks used ECB funds to purchase five-year Spanish bonds at yields near 3.5pc in February and 4.5pc in December. The same bonds were trading at 4.77pc on Wednesday, implying a large loss on the capital value of the bonds.
The Last Bubble
By Robert Morley - TheTrumpet.com
....The Fed is worried that if it stops printing money, the treasury market will melt down. If America can't find enough lenders, interest rates will skyrocket. And the economy will seize up. If rates just return to the 5 percent range (as they were in 2007), almost half of all the money the government collects in taxes would go to paying just interest on the debt. Nobody even contemplates what will happen if rates return to the levels seen during the 1980s—because total financial meltdown would occur before they even got there. But interest rates have been there before—so what is stopping them from returning again?
This is what Schiff and Faber are worried about: The explosion of the biggest bubble in the history of the world—the U.S. government debt bubble.
And the resulting end of the financial system as we know it.
The Obama Rule He says taxation is about fairness, not growth or revenue.
Opinion - WSJ.com
Forget Warren Buffett, or whatever other political prop the White House wants to use for its tax agenda. This week the Administration officially endorsed what in essence is the Obama Rule: Taxes must be high simply to spread the wealth, never mind the impact on the economy or government revenue. It's all about "fairness," baby.
This was long apparent to those fated to closely watch the 2008 campaign, but some voters might have missed the point amid the gauzy rhetoric about hope and change. Now we know without any doubt. White House aides made it official Tuesday in their on-the-record briefing on the new federal minimum tax that travels under the political alias known as the "Buffett rule."
What Is ObamaCare?
By: Paul Craig Roberts
Growing up in the post-war era (after the Second World War), I never expected to live in the strange Kafkaesque world that exists today. The US government can assassinate any US citizen that the executive branch thinks could possibly be a "threat" to the US government, or throw the hapless citizen into a dungeon for the rest of his or her life without presenting any evidence to a court or obtaining a conviction of any crime, or send the "threat" to a puppet foreign state to be tortured until the "threat" confesses to a crime that never occurred or dies at the hands of "freedom and democracy" while professing innocence.
It has never been revealed how a single citizen, or any number thereof, could possibly comprise a threat to a government that has a trillion plus dollars to spend each year on security and weapons, the world's largest navy and air force, 700 plus military bases across the world, large numbers of nuclear weapons, 16 intelligence agencies plus the intelligence agencies of its NATO puppet states and the intelligence service of Israel.
Americans not feeling so good over Obamacare
By ANDREW MALCOLM - Investors.com
When Obamacare passed through Congress by the hair on its chinny-chin-chin, the optimistic Pelosi prognosis was: Be patient and call back in two years. The people will love it the more they learn about it.
Well, it's been two years. They've learned more about it, including its dishonest cost estimates and politically-tinged bureaucratic exceptions.
And as the Supreme Court decides about euthanizing the entire legislation on obvious constitutional grounds, Americans have already decided: They don't like it.
Best and Worst Jobs of 2012
WSJ.com
CareerCast.com ranked 200 jobs from best to worst based on five criteria: physical demands, work environment, income, stress and hiring outlook. To compile its list, the firm primarily used data from the Bureau of Labor Statistics and other government agencies. From a software engineer to a lumberjack, see the complete list, and search for your job.
Mid-income earners suffer the most Mid-Incomers Suffer in Polarized U.S. Job Market: Economy
By Alex Kowalski - Bloomberg.com
Americans at the top and bottom of the income scale are benefiting most from the jobs recovery while those in the middle are getting left behind.
Employees making above-average wages, like doctors and energy-industry workers, and those at the other extreme, including home-health aides and restaurant staff, have seen outsized gains in hiring since the jobs recovery began in February 2010, say economists at Wells Fargo & Co. and JPMorgan Chase & Co. Professions in the middle, such as financial services and specialty construction, aren't faring as well.
Chinese Applicants Flood U.S. Graduate Schools
By MELISSA KORN - WSJ.com
More than ever, Chinese students have their sights set on U.S. graduate schools.
Application volume from that country rose 18% for U.S. master's and doctoral programs starting this fall, according to a new report from the Council of Graduate Schools that provides a preliminary measure of application trends. Specific programs of interest include engineering, business and earth sciences.
That is on top of a 21% jump last year and a 20% rise in 2010—and is the seventh consecutive year of double-digit gains from China, according to the graduate-school industry group. Applications from China now comprise nearly half of all international applications to U.S. graduate programs.
The Hard Working American vs. The Government Parasite
By Michael Snyder - TheEconomicCollapseBlog.com
Which lifestyle choice produces better results - being a hard working American or being a government parasite? Actually, when you look at the cold, hard numbers they may just surprise you. In America today, we deeply penalize hard work and we greatly reward government dependence. If you live in a very liberal area of the country and you know how to game the system, it is entirely possible to live a comfortable existence without ever working too much at all. In fact, there are some Americans that have been living off of "government benefits" for decades. Many of these people actually plan their lives around doing exactly what they need to do to qualify for as many benefits as possible. America is rapidly turning into a European-style socialist welfare state and it is destroying our nation socially and financially. Ever since the "war on poverty" began our debt has absolutely exploded and yet now there are more poor people in this country than ever before. Obviously something is not working.
Recovery for the 1% An economic recovery that leaves workers further behind
By Harold Meyerson - WashingtonPost.com
Why is this recovery different from all other recoveries?
Many of the reasons are widely known: Rebounding from a financial crisis takes an excruciatingly long time; the huge decline in housing values has reduced Americans' purchasing power; large corporations are making do with fewer employees — at least, in this country.
But what really sets the current recovery apart from all its predecessors is this: Almost three years after economic growth resumed, the real value of Americans' paychecks is stubbornly still shrinking. According to Friday's Bloomberg Economics Brief, "the pace of income gains is well below that of the past two jobless recoveries and real average hourly earnings continue to decline."
IMF warns of £750bn pensions time bomb Britain's ageing population is threatening a pensions time bomb that could cost as much as £750billion, the International Monetary Fund has warned.
By Philip Aldrick, and James Kirkup - Telegraph.co.uk
The IMF said yesterday that even a slightly faster than expected increase in life expectancy could impose a huge new financial burden on Western economies such as Britain. "The time to act is now," it said.
Governments and the financial sector have consistently underestimated how quickly average lifespans will rise, IMF researchers found.
They believe it has been routinely understated by about three years, which could render public finances unsustainable, they warned.
Corporate Tax Kickbacks: Busting Our Budgets, State By State
By Jeremy Bowman, The Motley Fool - DailyFinance.com
Alabama and Louisiana, two of the poorest states in the nation, recently battled to host a new ThyssenKrupp steel mill. Alabama "won," but getting the mill cost the state $734 million in tax breaks -- or $272,000 for each of the 2,700 jobs the steelmaker will create.
Federal tax giveaways to industries ranging from energy to agriculture have received much criticism, but the relocation incentives offered by states for corporations to move their facilities from one to another may be the most counterproductive of all corporate subsidies.
19 Things That The Talking Heads On Television
Are Being Strangely Silent About
By Michael Snyder - EndOfTheAmericanDream.com
If the talking heads on television don't tell us about something that happens, does it make that event any less real? Of course the answer to that question is quite obvious, but unfortunately way too many Americans allow their realities to be defined by what they hear from the mainstream media. Way too many people use phrases such as "if that was true I would have heard about it on television" to deflect conversations that are starting to become uncomfortable. Critical thinking is a skill that is in short supply in America today, and most Americans seem content to let their televisions do their thinking for them. Sadly, the pretty people on television do not spend a lot of time talking about the things that are truly important. Instead, they love to talk about the latest celebrity scandal and they love to divide people into groups and get them fighting with one another. In this day and age, it is absolutely critical that we all learn to think for ourselves. The talking heads on television are concerned with keeping their bosses happy and with keeping the ratings up. Most of them are not really concerned about what happens to you. They just want you to keep watching them so that they can continue to earn their inflated salaries.
Lew Rockwell: "Ron Paul already won the election"
This year is an election year and an important topic to many Americans is the economy. On Tuesday, Maryland, Washington DC and Wisconsin will hold their primaries where voters will head to the polls to cast ballots for their GOP nominee. Although a Ron Paul nomination is unlikely, the Texas congressman still hasn't bowed out of the race. Young voters continue to show support for the candidate despite the odds and Lew Rockwell, chairman for the Ludwig Von Mises Institute, joins us to discuss what's next for Paul's campaign.
CISPA: New Internet Bill
Could Practically Shred the First Amendment
By Brent Daggett - TheIntelHub.com
If ACTA, SOPA and PIPA were not enough to squelch Internet freedom, a new cyber bill could basically delete any remains of our first amendment.On November 30, 2011 representatives Michael "Mike" Rogers (R-MI) and C.A. Ruppersberger (D-MD) introduced H.R. 3523: Cyber Intelligence Sharing and Protection Act of 2011, which has 106 co-sponsors.
[Editor's note: for other cybersecurity proposals, see McCain's legislation which would give even more control to the military and National Security Agency, as well as the alternative proposal which would hand overbroad control to the Department of Homeland Security.
Also consider the scheme to be voluntarily implemented by Internet Service Providers wherein they will conduct massive surveillance on all Americans in the name of stopping piracy.]
SOPA changes name to CISPA
The latest attempt by Congress to try to regulate and control the Internet is no longer known as SOPA but CISPA: the Cyber Intelligence Sharing and Protection Act. The SOPA-like bill would give companies the power to collect information on their subscribers and hand it over to the government and all they have to do is request it. Kendall Burman, senior national security fellow for the Center for Democracy and Technology, joins Liz Wahl to talk about what this means for online freedoms.
The Keystone Pipeline Fallout:
Canada Makes Over a Billion New Friends
By James Baldwin, Contributing Writer, Money Morning
"If you do not change direction, you may end up where you are heading." Lao Tzu
You can forget about energy independence for now.
Without Canadian oil it is nothing but the latest American pipe dream.
In the wake of the Keystone Pipeline decision, Canada has decided to play ball with China instead.
According to Canadian Prime Minister Stephen Harper, the U.S. reluctance to build the Keystone Pipeline has caused his nation to increase the flow of oil headed west.
Instead of flowing south into the U.S., the same oil is now going to be headed to China.
New Credit Rules Delayed for FHA Mortgages
ml-implode.com
While FHA mortgages are popular for being consumer friendly while offering flexible credit guidelines, the recently changed collections anddefault rules that were effective April 1st were a step backwards for the Federal Housing Administration. After one week in place, the new credit rules for FHA mortgages have been delayed until July, 2012. In the meantime, FHAhas stepped back and will be accepting outside feedback on these new rules.
Homes for Rent, $208 a Month:
A Plan to Save Fannie Big Money
By Rich Smith, The Motley Fool - DailyFinance.com
A recent Federal Housing Finance Agency report on Fannie Mae and Freddie Mac confirms that the two government-sponsored enterprises now own some 200,000 single-family homes.
Originally designed to be facilitators of the national mortgage market, these companies came by their massive real estate portfolio by foreclosing on properties whose owners had fallen behind on their mortgages.
But they're not thrilled about it, and you shouldn't be, either.
PRINCIPAL REDUCTIONS AND LOAN MODIFICATION
WITHOUT HARDSHIP REQUIREMENTS
By Michael Nazarinia - ML-Explode.com
Mr. DeMarco, who is the head of the FHFA and is a Republican, sees such a large moral danger in people cheating by going late on their mortgage to get a principal reduction and applying for a loan mod while lying about their hardship to get a principal reduction that he does not favor principal reductions, even though nearly a million homeowners with Fannie or Freddie as the investor, with current real hardshipswill be helped by it.
The NPV is higher on each and every loan disposition analysis we see at the REST Report Matters by doing this under the HAMP PRA Home Affordable Modification Program Principal Reduction Alternative – a program that Fannie and Freddie are not participating in but they should – despite the higher NPVs for these types of mods.
South Greensburg Puts Limits On Yard Sales
Pittsburgh.CBSLocal.com
SOUTH GREENSBURG (KDKA) — The blooming of spring will soon give way to the sprouting of summer garage sales.
The yards and driveways of South Greensburg will play their part in America's weekend tradition.
But when the friendly weekend garage sale threatens to become an everyday business, that's when neighbors are likely to say "There ought to be a law!"
That wish may soon come true.
American Decline: Debated, Contested, Obvious
By William Pfaff - Truthdig.com
Is the United States in decline? You would certainly think so from the publishers' lists, although some of the new books, written by determined neoconservatives resisting indictment for complicity in causing the decline, such as Robert Kagan, are arguing that it's only a very little decline, and temporary, and will end in November when the teapot boils. Certainly President Barack Obama forswears declinism. Anyone who says that America is in decline, "or that our influence has waned, doesn't know what they are talking about," he said in his State of the Union address.
Well, actually, the only people who can really say that are those who haven't been to Europe or the major Asian states recently, where everything works beautifully, even if Europe's debts are not paid off. The 200 mph trains that crisscross Europe not only run on time but give you money back if they are late. The hotels in Singapore, Tokyo and the Arabian Gulf surpass all rivals. Their national airlines provide unparalleled service, and even room enough to sit comfortably in economy.
Leaked Video Shows US Contractors
Randomly Killing Civilians
Employees of the US military contracting group Academi (formerly Xe, Blackwater USA and Blackwater Worldwide) are seen in new leaked video shooting their machine guns at random while driving through the streets of Baghdad, crashing into other cars and even running over a pedestrian without hesitation. Academi received a $250 million contract by the Obama administration to provide military services in Afghanistan.
America 2012: The Supreme Court
Has Made It Legal For The Police
To Strip Search You Any Time They Want
By Michael Snyder - EndOfTheAmericanDream.com
Last week the U.S. Supreme Court ruled that police in the United States can strip search anyone that they arrest. It doesn't matter how minor the crime is and it doesn't matter if they suspect that you have contraband on you or not. The Supreme Court even said that you can be strip searched if you have been arrested for a traffic violation. Any type of arrest will do. Once you are arrested, if the police want to strip off your clothes and see you naked there is not a thing you can do about it. You can read the entire Supreme Court decisionright here. Considering the fact that 13 million Americans are put in jail at some point each year, this is a very frightening thing. The notion that we are all "innocent until proven guilty" is rapidly becoming a thing of the past. Thanks to the Supreme Court, it is now legal for the police to strip search you any time they want. All they have to do is find some excuse to arrest you. And considering the fact that almost everything is illegal in America, that is not hard to do. America continues to become a very dark place in 2012, and very few people are speaking up in defense of liberty and freedom.
Defense Department to Further Militarize
U.S. Law Enforcement With Hundreds of Military Robots
By Madison Ruppert - TheIntelHub.com
Last year I reported on the Pentagon's 1033 Program, wherein local law enforcement agencies can obtain surplus military hardware through a website, only having to pay to pick up the equipment.
Now, according to the Defense Logistics Agency (DLA), law enforcement will be even further militarized through the use of hundreds of military robots acquired by the Department of Defense over the past decade.
According to the head of the eastern team of DLA's disposition services office, Dan Arnold, the older and more heavily used items will likely be robots for explosive ordnance disposal and surveillance, although some of the hardware is nearly brand new and never been deployed overseas.
Rense & David Paulides -
100s Of Missing People In US National Parks Eastern US
David Paulides has just released his new book Missing-411;
Missing-411 is the first comprehensive book about people who have disappeared in the wilds of North America. It's understood that people routinely get lost, some want to disappear but this story is about the unusual. Nobody has ever studied the archives for similarities, traits and geographical clusters of missing people, until now.
Nazi Engineers, Secret U.S. Military Bases,
and Elevators To The Subterranean
and Submarine Depths (Part 1)
By Dr. Richard Sauder - TheIntelHub.com
With Commentary By Shepard Ambellas & Alex Thomas
In the preliminary stages of my research in the early 1990s, I had no informed idea of how deep below the surface underground bases could reach. By chance I had gone to hear a public talk by a man I did not know, on a topic that had nothing whatsoever to do with underground bases.
However, during the talk he unexpectedly made an offhand comment that caused me to think that he knew something about secret underground facilities. A few days later, I telephoned him and asked if I could come by his office to speak with him.
He consented to give me a little of his time, so I went by and asked him some questions, including about a specific location where I believed there was a secret underground base. He verified that there was a base there and told me that it was one mile deep.
The Underground -
A Hidden Reality and The True Story of Phil Schneider
Phil Schneider died in 1996. Previous to his death he had been on tour across the United States speaking out about various subjects including his involvement with building a secret underground base in Dulce, New Mexico for the military. During this time, he said to have had an encounter with a violent E.T race in the late 1970's which would change his whole world reality immediately after. This documentary explores some of the information Phil Schneider spoke about to the public in the 1990's by examining each claim in detail with expert opinions from Richard Dolan, Richard Sauder, Neil Gould and Cynthia Drayer (Phil's Ex-Wife).
Apple to Build Giant Hydrogen Fuel Cell
to Provide Electricity for the Grid
By James Burgess - OilPrice.com
Hydrogen fuel cells offer a scalable, clean, renewable energy source. They are currently used in some automobiles, but due to the ease of scalability can be used to create large power plants to supply the grid.
However, according to a recent report by the US Energy Information Administration (EIA), hydrogen fuel cells are one of the most expensive forms of producing electricity in the world; around $6.7 million per megawatt.
Keystone XL Takes Center Stage in Maine(?)
By Daniel J. Graeber - OilPrice.com
Maine lawmakers last month quietly passed a non-binding resolution backing the controversial Keystone XL oil pipeline. The pipeline has become political fodder during the U.S. presidential campaign season and the Maine Senate, along partisan lines, said it was time to lend its voice to the contentious debate. Left out of the Senate debate, however, were controversial plans for a similar pipeline planned to deliver oil to ports in their very own state. And it's an election year.
For critics of U.S. President Barack Obama, the Keystone XL has come to represent the panacea for perceived problems with domestic energy policy. The current political debate over the project, proposed in 2008, has taken on mythological proportions with backers claiming it would resolve many of the economic and foreign policy problems in the United States. Behind the political furor, the company behind the pipeline, TransCanada, said it was moving forward with the domestic leg of the project, which would ease the bottleneck at the Cushing, Okla., storage hub, the main point for U.S. crude oil traded on the futures market.
Crazy Like a Fox The North Korean leadership
knows exactly what it's doing -- who it's doing it to.
By GEORGE H. WITTMAN - The American Spectator.org
There has been a tendency to view North Korea's leadership as bordering on irrationality, if not outright psychosis. There has evolved the alternate view, however, that Pyongyang's ruling clique of the Kim family and its coterie of elderly generals use seeming instability as a tool of their negotiating technique.
There can be no question that the Democratic People's Republic of Korea (DPRK) has played upon the theme of its starving population to generate sympathy in Washington administrations of both parties that produce agreements to ship food, fuel and other basic commodities. Threats by the United States periodically to cease such humanitarian actions do not produce the expected cooperative result, yet eventually Washington succumbs and resumes shipments. This is not exactly an effective "carrot and stick" leverage.
Philippine warship in tense standoff with Chinese vessels
By Jason Gutierrez, Agence France-Presse - VancouverSun.com
MANILA - The Philippines' biggest warship was locked in a standoff on Wednesday with two Chinese vessels in the South China Sea, reigniting tensions in a decades-long dispute over the resource-rich waters.
The Philippine government said the Chinese ships were blocking efforts by its navy flagship vessel to arrest Chinese fishermen that were found on the weekend to have illegally entered its territory.
In a dramatic day of diplomacy, the Philippines summoned the Chinese ambassador in Manila and lodged a formal protest, but China insisted it had sovereign rights over the area and ordered the Philippine warship to leave.
Philippine President Benigno Aquino said he was looking to end the standoff through diplomatic means.
"No one will benefit if we have violence," he told reporters.
North Korea seen playing up a crisis Analyst sees nation using rocket launch
to wring more concessions
By Shaun Waterman - The Washington Times
North Korea appears determined to launch a rocket this week, despite the prospect of losing nearly 250,000 tons of U.S. food aid, receiving new U.N. sanctions and embarrassing its only major ally, China.
With so much at stake, the secretive communist nation's actions beg the question: What do North Korean leaders hope to gain by going through with the launch?
"They decided to drive tensions higher and manufacture a crisis," says Andrei Lankov, aNorth Korea scholar at Kookmin University in Seoul.
Clinton Says Asia Needs U.S. Leadership
By Nicole Gaouette - Bloomberg.com
Secretary of State Hillary Clinton said there is no alternative to U.S. leadership in the Asia- Pacific region, recognizing concerns that the U.S. is moving to deny rising Asian nations "their fair share of influence."
"When it comes to ensuring stability and security in the Asia-Pacific and beyond, there simply is no substitute for American power," Clinton, the top U.S. diplomat, said in a speech last night at the U.S. Naval Academy in Annapolis, Maryland.
Rense & Rifat -
A Fukushima Fallout Will Dwarf the US Arsenal
Fukushima is not safe or stable and with more than 10,000 tons of enriched nuclear material, that is enough to make 10s of thousands of nuclear bombs. And it would spread throughout the Northern Hemisphere.
What's goin' on at the Turkish-Syrian border?
By Pepe Escobar - ATimes.com
There is a video [1] that could be loosely translated as "Terrorist Turkish border opening fire on the Syrian side" that pretty accurately sums up what's going on at the ultra-volatile geopolitical hotspot of the moment.
The voice over says, "This is the Syria-Turkey border, and this is an operation of the Free Syrian Army [FSA] ... The Gate [that would be the Syrian side of the border, housing the Gate checkpoint] is going to be seized."
Israel's Egypt Conundrum Does the 1979 peace treaty still have a future?
By P. DAVID HORNIK - The American Spectator.org
It's now Passover week in Israel, and it's natural for Egypt to be in the air. The holiday celebrates the Israelites' liberation from serfdom to Pharaoh over three thousand years ago, which launched the trouble-fraught but ultimately successful forty-year trek to freedom in the Promised Land.
But Egypt keeps being intertwined with Israel's current affairs, too; and, just like back then, in ways that are generally difficult. As in the rocket fired last Thursday morning from Egyptian Sinai at Eilat, Israel's port and tourist center on the Red Sea. As in the explosionthat hit Egypt's gas pipeline to Israel and Jordan on Monday -- the fourteenth to do so, all of them sabotage, in about a year. The pipeline, too, is in Sinai, and has been closed since a previous explosion on February 5.
Iran-fueled oil price spike biggest threat to economy
By Steve Hargreaves @CNNMoney
NEW YORK (CNNMoney) -- An oil price spike caused by a confrontation with Iran is now seen as the biggest threat to the U.S. economy.
That's according to nine out of 18 economists surveyed recently by CNNMoney. They say rising oil prices now outweigh the risks posed by the European debt crisis, ongoing gridlock over the budget in Washington and fears of a slowdown in China.
"An Iranian disruption of oil supplies could send oil prices to $200 a barrel," said Lynn Reaser, chief economist at the Fermanian Business & Economic Institute.
Surrender now or we'll bomb you later
By Pepe Escobar - ATimes.com
Former United States president George W Bush issued an ultimatum to Saddam Hussein before bombing and invading Iraq.
Nine years later, US President Barack Obama has issued an ultimatum to the leadership in Tehran before ... setting optimal conditions for an "all options on the table" exercise.
Obama has made an offer to Tehran to "negotiate" its nuclear program - ahead of long-delayed talks between the "Iran Six" (P5+1 - the five permanent members of the UN Security Council - the US, the United Kingdom, China, Russia and France - plus Germany) and Iran scheduled for Istanbul on Saturday.
USS Enterprise heads to Persian Gulf
CNN.com
The carrier group is heading to the Gulf and our CNN national security experts note that this is a typical Navy maneuver that happens as carrier groups rotate to new positions around the globe.
This is the final deployment for the Enterprise, which will be inactivated and eventually decommissioned, according to a Navy press release.
This does come at a time that relations with Iran are fraying. We called the Navy today to ask if there is any connection. They did not get back to us right away. If they do, we will update this.
Iran Escalates Again, Cuts Oil to Spain
TheTrumpet.com
Iran's dispute with Europe appears to be escalating. Iran's semi-official Mehrs news agency reports that Tehran has cut oil deliveries to Spain.
The move seems designed to inflict maximum damage on Europe at a time when many European economies are struggling under the weight of recession and debt repayment. Press tv reports: "Tehran has cut oil supply to Spain after stopping crude export to Greece as part of its countersanctions, unnamed sources confirmed on Tuesday. Tehran also mulls cutting oil supply to Germany and Italy."
Real-time Earthquake Map - USGS
(April 11 -12, 2012 - quakes in Alaska, Oregon, California, Mexico, Argentina, and locations in SE Asia ring of fire)
Magnitude 5.9 quake hits off coast of Oregon: USGS
WASHINGTON | Wed Apr 11, 2012 7:14pm EDT
(Reuters) - A magnitude 5.9 earthquake struck off the coast of Oregon on Wednesday and was followed a minute later by a smaller quake off the coast of central California, the U.S. Geological Survey said.
Strong quake shakes Mexico, no major damage
By Cyntia Barrera
MEXICO CITY | Wed Apr 11, 2012 8:39pm EDT
(Reuters) - A strong earthquake hit western Mexico on Wednesday, shaking buildings as far away as the capital and sending people rushing out of offices onto the streets, though there were no reports of major damage.
Mexico City Mayor Marcelo Ebrard said on his Twitter account there were no initial signs of serious damage and that key services in the capital, including its subway system and the international airport, were operating normally.
Despite the Common Gloom, Gold is Still Shining
By P. Radomski - GoldSeek.com
We often get fearful queries from short-term traders who are concerned about short-term movements in the precious metals market. Now we're even getting worried e-mails and questions from investors who are holding long-term positions. This is an indication that sentiment is scraping the bottom and that is usually seen at major bottoms.
It is certainly possible that the Fed is really lulled by recent improvements in some economic indicators into thinking that the economic picture is getting rosy, or it could be the case that they just want people to believe that they think so. Anyway, we don't see it that way. Economic slowdown in Europe, China, India, Latin America and virtually everywhere else is sure to cut demand for American exports. Petroleum and gasoline prices are putting pressure on consumers and cutting into purchases of other goods and services. Saber rattling in the Middle East could make the prices of oil go through the roof. In addition, let's not forget the eurozone problems that seem to be off the radar, the depressed housing sector, the heavy debt burden that should be keeping government economists awake at night. The Fed would be thrilled to see a weaker dollar and a higher inflation rate that would reduce the real value of the U.S. debt mountain.
Surging central bank gold demand
adds new dimension to bull market
By Michael J. Kosares
The longer-term trends in gold's supply-demand fundamentals point to a potentially explosive market situation in the years ahead. In short, the supply trend is static to shrinking while global demand trends, particularly from investors and central banks, appear to be in a period of rapid expansion. What's more the political, financial and economic dynamics driving these trends are not likely to undergo any significant reversal anytime soon for reasons explored below. Up until now, gold's secular bull market has been driven by a combination of private and institutional investor demand. Though those two components in the demand picture remain well-defined, it is the arrival of deep-pocket central banks in emerging countries like China, Russia, Saudi Arabia, India, Mexico, Brazil, as well as players yet to be named, that have added a whole new dimension to gold's secular bull market.
Managing Expectations: Why Gold Should Thrive
By Frank Holmes - GoldSeek.com
It was a challenging week for gold investors. Although the yellow metal has been on a spectacular 11-year bull run, recent strength in the economy has some thinking gold's heyday is over.
As I often say, investing, like life, is about managing expectations — even throughout gold's decade-long rise, price action over the short term can go both ways. It helps to look at what happens after short-term drops. For example, looking at the past decade of one-day 5 percent declines in gold, you can see that this event is pretty rare. In 2006, gold dropped more than 5 percent in a day only two times. In 2008, there were three such events. Another one occurred at the end of this February.
Russia Today's 'Capital Account'
examines gold and silver manipulation
By: Chris Powell, Secretary/Treasurer, GATA - GoldSeek.com
Last Friday the "Capital Account" program of the Russia Today television network, hosted by Lauren Lyster, focused on gold and silver market manipulation, interviewing Mike Maloney of GoldSilver.com and citing GATA, silver market analyst Ted Butler, last week's comments on silver market manipulation by JPMorganChase's Blythe Masters, the London Gold Pool's market rigging of the 1960s, Federal Reserve Chairman Alan Greenspan's admission to Congress that the purpose of gold leasing is price suppression, CPM Group executive Jeff Christian's admission to the U.S. Commodity Futures Trading Commission in March 2010 that paper trading of the monetary metals dwarfs the actual metal available, the price-suppressive influence of the New York gold market, the report from the South Carolina state treasurer's office confirming gold and silver price suppression, and more -- all stuff that GATA has been calling to the world's attention.
A Return to the Gold Standard,
or Gold Behind Currencies Part 1 This is the first part of a five part series on how gold will return to the monetary system globally but not in the form of the defunct Gold Standard.
BY JULIAN PHILLIPS - FinancialSense.com
The Gold Standard
Mr. Bernanke is entirely right about the return of the Gold Standard, as it was implemented then could not work now. In its day, it was appropriate and worked well for many years, but the circumstances it worked in changed. The system did not change with those changes. Bear in mind that the world was at a stage where it believed in gold as the only money that one could trust. That's why governments and their central banks issued notes against it and not un-backed currencies. The notes represented an amount of gold that could be trusted. Of themselves government notes represented not governments but their gold.
Will U.S. Avoid a Recession in 2012? (Part 2)
By A. Gary Shilling - Bloomberg.com
Employment in the U.S. has gained in recent months because businesses have, at least temporarily, run out of productivity enhancements that had allowed them to cover output gains with reduced staff.
Payroll-employment growth has risen in recent months, though an unseasonably warm winter may have provided a temporary boost. (The disappointing report for March, released last week, may be a case in point.) Furthermore, this growth is benchmarked to an extremely low recessionary base, and the unemployment rate, while down from 9.1 percent in August, is still high, at 8.2 percent.
Brazil president Dilma Rousseff
blasts Western QE as 'monetary tsunami' Brazil's president Dilma Rousseff has attacked Western governments for creating a "monetary tsunami" as they pursue quantitative easing (QE) policies in an effort to revive their economies.
By Richard Blackden - Telegraph.co.uk
In her first visit to the White House since her election more than a year ago, Ms Rousseff voiced concern over an "expansionist" monetary policy that has caused a "depreciation in the value of currencies of developed countries, thus impairing growth" in other nations.
The Brazilian government has taken aggressive steps to try to tame the strength of its currency and protect exports, with the country's central bank intervening in the currency markets in recent weeks.
Government predicts even higher gas prices
By Chris Kahn - AP - WashingtonTimes.com
NEW YORK — U.S. drivers will pay an average of 24 cents more per gallon for gasoline during this summer's travel season, the government said Tuesday.
Gasoline will cost an average of $3.95 per gallon from April through September, an increase of 6.3 percent from the same period last year, theEnergy Information Administration predicted. The peak should come in May, when gas averages $4.01 per gallon, the agency said.
Gasoline already has jumped by 20 percent this year to a national average of $3.922 per gallon, according to AAA's Daily Fuel Gauge Report.
America's Debt Is Greater
than Entire Eurozone's (and U.K.'s) Combined Debt
BY DANIEL HALPER - WeeklyStandard.com
The Republican side of the Senate Budget Committee will release this chart later today, clearly showing that America's debt is greater than the combined debt of the entire Eurozone and the U.K.:
As the chart shows, America's debt is currently $15.1 trillion, while the Eurozone (which includes France, Germany, Greece, Italy, Spain, the U.K., and others) has a combined debt of $12.7 trillion. (All dollar amounts are in U.S. dollars, and the data refers to closing 2011 numbers.)
The Fed's Swap Bailout of the Eurozone
Mises Daily: by Philipp Bagus
On Tuesday, March 26, 2012, I was invited by Ron Paul and his staff to assist a meeting of theDomestic Monetary Policy and Technology Subcommittee of the House Committee on Financial Services. The title of the hearing was "Federal Reserve Aid to the Eurozone: Its Impact on the U.S. and the Dollar."
Unfortunately, Ben Bernanke had not come to the hearing, being busy with propaganda lecturesin favor of the Fed. Instead, two of his colleagues, Mr. William C. Dudley (president and chief executive officer, Federal Reserve Bank of New York) and Dr. Steven B. Kamin (director, Division of International Finance, Board of Governors of the Federal Reserve System), showed up to answer the committee's questions on currency swaps with other central banks.
Is the Fed Losing Confidence?
BY BRIAN PRETTI CFA - FinancialSense.com
These comments will mean little to market outcomes in the next few days or months, perhaps even years for all I know. I'd like to address a big-picture macro that I think will be important somewhere down the road and will act perhaps as a behavioral bookend to the beginning of the bond bull market in the early 1980's. But indeed if I'm anywhere even near the mark on this one, bonds will only be one part of a much larger story.
Let me set the stage. Although many of you may be far too young to remember, Arthur Burns was the Fed Chairman when true inflation really started to heat up materially in the 1970's. Although Paul Volcker was and should be credited with having the intestinal fortitude as a central banker to break the back of inflationary psychology as well as price acceleration reality, his predecessor Arthur Burns did not sit back and allow inflationary pressures to brew unattended. Unfortunately for and unbeknownst to Mr. Burns at the time, the markets were not in the mood for incremental action.
Doing the Roth Arithmetic
By Terry Coxon, Casey Research - GoldSeek.com
It's clear to me, even though it may not be clear to you, that unless there is something very unusual about your situation, if you have a traditional IRA, you should pay the tax now and convert it to a Roth IRA. Not just maybe, but definitely. Not just for a small advantage but for a big one. If you don't convert today, you'll ultimately surrender much more to the tax collector. You'll be throwing money away. And you'll keep throwing it away. It's a result neither of us wants.
Your IRA is an object in motion, with money going in and out of it and investments turning over inside of it. It lives not just on your brokerage statement but across the years of your calendar as well. That's why the Roth conversion question can seem so tangled. Because of the time dimension, deciding whether to convert isn't as simple as deciding whether to replace one stock with another. But there is, as I'll try to show, a way to look at the question that cuts through the complexity.
The Euro Crisis Is Back! (Actually, It Never Really Left) A lonely continent turns its eyes to Mario Draghi and the ECB to stop the latest round of Euro panic.
By Matthew O'Brien - TheAtlantic.com
Meet the new crisis. Same as the old crisis.
After a quiet-ish few months, Euro panic came back in a big way on Tuesday. Spanish stocks hit a three-year low. Spain's bond yields crept back up above 6 percent. It wasn't any better in Italy, whose stocks fell 5 percent. That's a lot of bad news on a day with seemingly no new news. What's going on here?
We thought the Euro crisis was over. We were wrong. Euro leaders just kicked the can down the road. Inexplicably, they confused this for the end of the road. But now the can needs to be kicked again. Either that, or Europe needs to come up with a genuine plan to end the crisis. Time to kick the can, again.
US set to kick the can further down the road During the first few months of 2010 and 2011, America showed encouraging signs of robust economic growth. In both years, though, by the spring or early summer, hopes of the world's biggest economy mounting a meaningful and sustainable recovery were snuffed out.
By Liam Halligan - Telegraph.co.uk
As a result, the US managed only a paltry 1.7pc real terms GDP expansion in 2011.
In recent months, once again, there have been strong indications this could be the year we finally see a proper lift-off across the Atlantic. America has put in yet another strong first quarter, with the economy, if anything, performing even better than during the first three months of 2010 and 2011.
An improving US economic outlook has been a big reason why shares lately have been soaring. The S&P500 index posted a 14pc rise during the year to the end of March – its best first quarter since 1998. Over the same period, the tech-heavy Nasdaq index put on 19pc, its strongest three-month surge since 1991.
Spain's 'lose-lose' struggle reignites euro crisis The eurozone crisis has returned with a vengeance after Spain's mounting woes pushed 10-year bonds yields back to the danger line of 6pc and the Madrid bourse crashed to its lowest level since the 2009.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Markets took no notice of fresh austerity pledges from premier Mariano Rajoy, including new cuts worth €10bn in health and education - seen as a belated move to salvage Spain's credibility after a spat with Brussels over fiscal slippage.
Mr Rajoy said the bond attack should dispel the illusions of those who think Spain can muddle through without serious austerity. "Markets can decide to lend or not to lend, and they can do so at a rate that is affordable or not," he said.
Markets wary despite extra round of Spanish cuts
BY ANDREW RETTMAN - EUObserver.com
BRUSSELS - The EU has welcomed Spain's plan to cut another €10 billion off its yearly budget, but the measure failed to stop speculation the country could be next in line for a bail-out.
Olivier Bailly, a European Commission spokesman, on Tuesday (10 April) said Brussels "welcomes" the move because it "confirms both the Spanish government's determination to implement the necessary reforms, and furthermore the Spanish government's commitment to respect the 5.3 percent [of GDP] deficit [limit agreed] for 2012."
Spain Is on the Bleeding Edge of a New European Crisis
By Peter Coy - Businessweek.com
Things are unraveling in Europe at a startling pace. The country in the greatest danger is Spain, which could become the fourth member of the euro zone to require a bailout, following Greece, Ireland, and Portugal. Spain's 709 billion euros of sovereign debt is roughly twice the debt of those three nations combined, according to data compiled by Bloomberg, so a rescue of Spain would be a heavy burden for the rest of Europe.
Investors got overconfident in Spain after the European Central Bank announced last December that it would funnel cheap, three-year loans to European banks, which they could (and did) use to invest in the debt of their own nations. The ECB lent more than 1 trillion euros. Spanish government 10-year yields, which were over 7 percent last November, plummeted to below 5 percent this January and February. They have raced back upward, to just below 6 percent in recent weeks.
Candidate to lead World Bank
says organization needs 'change of culture'
By Brad Plumer - WashingtonPost.com
Jose Antonio Ocampo, one of three candidates to head up the World Bank, said Tuesday that the organization needs a "change of culture," citing the bank's past difficulties in collaborating with other international institutions.
Ocampo, a former Colombian finance minister, laid out his vision for the World Bank at an event hosted by the Washington Post Live and the Center for Global Development. He said the bank needs to continue its "historic" task of reducing poverty while expanding its focus to issues such as climate change.
Capitalism Died Decades Ago Jim's recent interview with Richard Duncan
BY RICHARD DUNCAN - FinancialSense.com
....Richard, you argue in your book when the United States went off gold backing from the dollar in 1968, the nature of money changed and the result was a proliferation of credit. As you document in your book, we went from almost 1 trillion dollars to today we're now over 50 trillion. Let's talk about that.
RICHARD: Right. In the past, up until 1968 it was a law that the Fed had to maintain gold backing for every dollar that it issued. It had to keep 25 percent gold backing for each dollar. After World War II, the US central bank had no difficulty meeting that requirement because the US had so much gold at the end of the war, but in 1968 they came up against that constraint and they would either have to have stop issuing more dollars or somehow acquire more gold.
CFR doesn't like the Volcker Rule Beyond the Volcker Rule: A Better Approach to Financial Reform
Policy Innovation Memorandum No. 18
Author: Benn Steil - CFR.org
The Issue
An approach to bank regulatory reform that restricts the scope and incentives for bank balance-sheet expansion funded by short-term debt is essential to preventing another major financial crisis. Such regulation would have prevented the collapse of Bear Stearns in the United States or Northern Rock in the United Kingdom in 2008.
In curious contrast, a "Volcker rule"—a ban on proprietary trading by commercial banks—would have done nothing to mitigate the worst financial crisis since the Great Depression. Yet implementing such a rule has become a domestic and international political miasma that is draining credibility from the postcrisis regulatory reform process in the United States. The effort should be abandoned. To make the U.S. banking sector more resilient and less dependent on taxpayer support, hard constraints on bank leverage should be implemented: banks should be prohibited from expanding their assets beyond a certain level without increasing shareholder common equity proportionately. To address the problem that banks find equity capital more expensive than debt, the massive incentives for debt financing in the tax code should be diluted, or preferably eliminated.
'Buffett Rule' touted by Obama
sets minimum tax rate for top earners
By Richard Rubin - WashingtonPost.com
April 10 (Bloomberg) -- President Barack Obama is promoting a "Buffett rule" setting a minimum tax rate for top earners to ensure they pay a higher percentage of their income than middle- class families. For the most part, they already do.
The average tax rate, including payroll taxes, for the middle 20 percent of U.S. families will be 15.9 percent in 2015, according to an estimate by the Tax Policy Center, a nonpartisan research group in Washington. Of the 217,000 households that would be affected by the Buffett rule, 4,000 will have incomes exceeding $1 million and tax rates lower than 15 percent, under slightly different measures of income and taxes by the center.
George W. Bush decries raising taxes on 'the so-called rich'
By Alicia M. Cohn - TheHill.com
Former President George W. Bush on Tuesday voiced opposition to raising taxes on "the so-called rich" in a rare public policy speech.
"I wish they weren't called the 'Bush tax cuts,' " he said of the tax rates set to expire at the end of the year. "If they were called some other body's tax cuts, they're probably less likely to be raised."
Bush, speaking in New York City at the George W. Bush Presidential Center's conference on "Tax Policies For 4% Growth," has mostly avoided weighing in publicly on current political debates since leaving office.
Worst loss for Dow this year as stocks slump again
By Christina Rexrode - AP -WashingtonTimes.com
NEW YORK (AP) — The stock market suffered its worst loss of the year Tuesday because of uncertainty about coming corporate earnings reports and concerns that the borrowing costs ofSpain are creeping close to a crisis level.
The decline extended the longest and deepest slump of the year for Wall Street to five days. More than half the first-quarter gain of the Dow Jones industrial average has been wiped out, and more than a third for the Standard & Poor's 500.
NFIB: Small Business Optimism Index declined in March
by CalculatedRisk
From the National Federation of Independent Business(NFIB): After Six Months of Increases, Small-Business Optimism Drops For Main Street, No New Jobs in the Months to Come
After six months of gains, the Small-Business Optimism Index fell by almost 2 points in March, settling at 92.5. After a promising start to the year, nine of ten index components dropped last month, most notably hiring plans and expected real sales growth each taking a significant dive, in spite of owners reporting the largest increase in new jobs per firm in a year.
With eye on Romney,
Obama makes another appeal
to middle class with 'Buffett rule'
By David Nakamura - WashingtonPost.com
BOCA RATON, Fla. — President Obama on Tuesday renewed his public push for the "Buffett rule," hoping that the proposal to raise taxes on millionaires will deepen distinctions with his political rivals in an election year, even if it has little chance to become law.
Appearing before thousands of students at Florida Atlantic University, Obama urged the Senate to approve the Paying a Fair Share Act, which would require anyone earning at least $1 million a year to pay at least 30 percent of his income in taxes.
Deregulation by another name
Dana Milbank - Washington Post Writer's Group
WASHINGTON -- Think the Obama administration has been strangling businesses with red tape?
Well, that's a load of chicken droppings.
Those who say we're being regulated into a state of European socialism might wish to consult with some of the federal poultry inspectors who assembled Monday morning outside the Agriculture Department. They were protesting a proposal to allow chicken slaughterhouses to inspect themselves -- eliminating those pesky federal monitors who have the annoying habit of taking diseased birds out of the food supply.
The Last Savior of Newspapers: Rich and Local Owners
The Philadelphia Inquirer was recently saved by a group of investors who bought the paper for "the benefit of the community." Is this a trend that can stabilize the industry?
By Peter Osnos - TheAtlantic.com
The headline in the April 3 edition of the Philadelphia Inquirer surely captured the message its new owners wanted to convey: "Once Again, in Local Hands."
The caption under a picture of three of the new proprietors: "'We do not want to run the newspapers,' said Lewis Katz, who has made a fortune in a variety of businesses, 'We want to merely own them for the benefit of the community.'"
Housing blame game A bureaucrat's unappreciated work for taxpayers
Attacking bureaucrats instead of fixing the market.
By Editorial Board - WashingtonPost.com
EDWARD J. DEMARCO is an obscure federal bureaucrat, but not as obscure as he probably would like. As acting director of the Federal Housing Finance Agency (FHFA), which oversees mortgage giants Fannie Mae and Freddie Mac while they are in federal conservatorship, Mr. DeMarco has become a scapegoat for populist critics of U.S. housing policy. Whole Web sites are devoted to demanding his ouster. Mr. DeMarco is "the single largest obstacle to meaningful economic recovery," according to one far-fetched Huffington Post article.
Specifically, he stands accused of preventing Fannie and Freddie from reducing the debts of underwater homeowners, thus compounding the misery of these unlucky borrowers and depressing the housing market. He is under tremendous pressure, from the Obama administration and its allies on Capitol Hill, to change course.
US mortgage and foreclosure law
by CalculatedRisk
Here is a very good overview (and fairly short) of US mortgage and foreclosure law by Zachary Kimball and Paul Willen at The New Palgrave Dictionary of Economics.
This article discusses title and liens, the differences between judicial states and non-judicial states, judgments and recourse, the Mortgage Electronic Registration System (MERS) and much more.
Fannie, Freddie might save
by reducing mortgage loan balances, FHFA chief says
By Brady Dennis - WashingtonPost.com
The head regulator for Fannie Mae and Freddie Mac said Tuesday that a preliminary analysis shows that it might make financial sense for the government-backed mortgage giants to reduce the loan balances of struggling homeowners. But he said more study is warranted before making such a move.
Edward J. DeMarco, the acting director of the independent Federal Housing Finance Agency (FHFA), unveiled new data during remarks at the Brookings Institution that showed Fannie and Freddie could save an estimated $1.7 billion by taking advantage of enhanced incentives from the Treasury Department to write down the principal for some homeowners.
Fannie, Freddie regulator still resists principal reduction
By Tami Luhby @CNNMoney
NEW YORK (CNNMoney) -- Allowing Fannie Mae and Freddie Mac to offer principal reductions may save money thanks to enhanced government incentives, a preliminary analysis released Tuesday shows.
But that doesn't mean their regulator, Ed DeMarco of the Federal Housing Finance Agency, is warming up to the idea.
DeMarco is facing tremendous pressure to allow the government-controlled mortgage titans to allow principal reduction on the mortgages they back. Some advocates say the best way to stabilize the housing market is to lower the balances for borrowers who owe more than their homes are worth.
Buy a House!
By Addison Wiggin - DailyReckoning.com
04/06/12 Baltimore, Maryland – A little more than a year ago, a very successful professional investor declared, "If you don't own a home, buy one. If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home."
Since that declaration, house prices have continued drifting lower in most parts of the country. The Case-Shiller index of national home prices is down about 4% year over year. Even so, we're betting this professional investor was merely early…not wrong. US housing isn't just cheap; it is the cheapest it has been in more than 40 years. And when one considers the possibility that inflation may rear its head soon, housing looks even cheaper still.
Health care law cripples U.S. finances Most affordable outcome would be total repeal
By Chuck Blahous - WashingtonTimes.com
One of the motivating principles underlying the passage of comprehensive health care reform was that it would substantially improve the federal fiscal outlook. But many are skeptical of claims that the law, known as the Affordable Care Act, or ACA, will simultaneously extend the solvency ofMedicare, provide subsidized health coverage to more than 30 million new people and yet somehow reduce federal deficits. They are right to be skeptical.
Study on healthcare law,
deficit puts Obama administration on the defensive
By Julian Pecquet - TheHill.com
The Obama administration is playing defense after a Republican Medicare trustee released a report that says the president's healthcare law will add $340 billion to the deficit.
In a White House blog post late Monday night, the president's deputy assistant for health policy derided the report as "another brand of 'new math' " and highlighted the political ties of its author, Charles Blahous, who was a champion of privatizing Social Security during the George W. Bush administration.
A streetcar named debt Rail projects highlight out-of-control spending priorities
Editorial - By The Washington Times
The District on Friday completed the first phase of testing for its $1.5 billion streetcar project. The nation's capital joins big cities like Los Angeles in advancing the revival of a transportation option that has been obsolete for more than half a century. The Obama administration is spearheading the effort to turn back the clock.
If $1.5 billion seems like a lot - it's an entire year's income-tax revenue for the city - Washington bureaucrats have a ready answer. A January 2012 study commissioned by the city concluded the 19th-century-style trolley service "strengthens real-estate values by adding $5 billion to $7 billion to the value of existing property and sparking an additional $5 billion to $8 billion in new development in the 10 years after completion." But wait, there's more. Operating electric trains in the middle of busy city streets will "draw an additional 6,300 to 7,700 jobs" to the District.
Should We Worry about the Class Divide?
By Jeffrey Tucker - DailyReckoning.com
04/10/12 Auburn, Alabama – Charles Murray's new book Coming Apart has generated an incredible amount of hand-wringing on all sides. For those who are skilled at ignoring such debates — good impulse, I say! — his thesis is that the ebb and flow of wealth and status between classes that once characterized American culture has ended.
He marshals vast evidence that we now have two separate worlds, one for the lowers and one for the uppers, and a huge chasm separates them. He demonstrates this with vast amounts of data that label the lower third of all races as essentially falling apart in every way. Increasingly, the lowers are characterized by divorce, unemployment, social alienation and economic stagnation, while the uppers are stable in all the opposite ways.
Koch Brothers File Second Lawsuit Against Cato Institute
By Andrew Harris - Businessweek.com
Billionaire brothers Charles G. Koch, co-founder of the Cato Institute, and David H. Koch sued the free-market advocacy group, seeking reversal of what they called a "board-packing scheme" to weaken their influence.
In a complaint filed yesterday in a Kansas court, a copy of which the institute posted on its website, the brothers claimed Cato Chairman Robert Levy, President Edward Crane and seven other directors last month improperly added four more directors to the board to dilute the Kochs' voting power.
Toxic Chicken Is the New Pink Slime The drive for ever-cheaper poultry means that chicken farms are cutting corners with predictably bad results for food safety.
By Marion Nestle - TheAtlantic.com
....The Center for Livable Future at Johns Hopkins reports that meal made from chicken by-products (in this case, feathers) contains arsenic and antibiotics such as fluoroquinolones that have beenbanned by the FDA for use in poultry.
A study published in Environmental Science & Technology found fluoroquinolone antibiotics in 8 of 12 samples of feather meal collected from six states and China.
A second study found arsenic in every sample of feather meal tested.
Almost 20% of 3rd Graders Have Cell Phones
By Alexis Madrigal - TheAtlantic.com
Kids in the third grade are, on average, eight years old. Nowadays, 20 percent of third-grade boys and 18 percent of third-grade girls already have a cell phone, according to a 2011 study of 20,766 Massachusetts elementary, middle, and high school students. By the time the kids reach fifth grade, 39% of the kids have cell phones, and phone saturation is nearly complete by middle school, when more than 83% of the students have a device.
ARE LANDLINES DOOMED? AT&T and Verizon's landline businesses are suffering,
but getting rid of them is problematic
By David Goldman @CNNMoneyTech
NEW YORK (CNNMoney) -- AT&T sold off its Yellow Pages service on Monday, shedding yet another legacy business from its days as a landline giant.
Now that wireless represents the main revenue driver and primary focus for AT&T (T, Fortune 500) and Verizon (VZ, Fortune 500) -- both with roots as Baby Bells -- is it time to get rid of the whole landline business altogether?
It's clear that landlines' best days are behind them. Nearly 32% of American homes are now cell phone-only households -- double the rate from 2008 and nearly triple that of 2007, according to a recent government study.
A court order shuts down 175 sites
selling counterfeit golf goods Manufacturers of golf clubs, balls and accessories win an injunction from a federal court.
InternetRetailer.com
A court order has temporarily shut down about 175 web sites selling counterfeit golf products, according to the U.S. Golf Manufacturers Anti-Counterfeiting Working Group, to which major golf companies belong. The preliminary injunction came from the U.S. District Court for the Southern District of Florida, the group said today.
Immediate comment from the court was not available this morning.
The group, founded in 2004 to fight against the selling of counterfeit products, said it filed suit against 130 defendants involved in the operation of more than 175 sites selling such products as golf balls, clubs and accessories. Visitors to those sites will be redirected to another site displaying information about the injunction.
How Computers Are Creating
a Second Economy Without Workers Call it the post-employee economy: The digital revolution is creating billions of dollars of wealth in a second world without people
By Bill Davidow - TheAtlantic.com
When the disappointing jobs numbers were reported last week (employers added 120,000 jobs in March, about half the number reported in the two previous months), analysts tripped over themselves looking for an explanation. Of course, jobs numbers are bound to vary, but in my view the long-term trend calls for more jobs to disappear, and the reason is clear as day: the exploding Second Economy.
The Second Economy -- a term the economist Brian Arthur uses to describe the computer-intensive portion of the economy -- is, quite simply, the virtual economy. One of its main byproducts is the replacement of low-productivity workers with computers. It's growing by leaps and bounds, brimming with optimistic entrepreneurs, and spawning a new generation of billionaires. In fact, the booming Second Economy will probably drive much of the economic growth in the coming decades.
SHERIFFS BUSHWHACKED Delaware attorney general strips county sheriffs of arrest powers
By Pat Shannan - AmericanFreePress.net
Sheriff Jeff Christopher of Sussex County, Delaware, when he was elected to the office in 2010, thought he was handpicked by the people to represent them as the highest-ranking law officer in the county. Instead, he has found himself in the middle of a fight for the future of American law enforcement as a result of a nationwide effort to abolish the sheriff's office altogether.
It is one more example of federal and state governments ignoring the will of the people as well state laws. In the case of Delaware, the state's own constitution stipulates that the office of the sheriff is a constitutionally created position just like the secretary of state and the attorney general. Delaware's Constitution states: "The sheriffs shall be conservators of the peace within the counties . . . in which they reside."
China Takes Aim at the Profitable Heart of U.S. Manufacturing
By Jordan Weissmann - TheAtlantic.com
For a long time, Americans have channeled their fear about China's factories into an exasperated, four-word refrain: They're stealing our jobs! By offering low-wage competition to U.S. workers, the Chinese picked off low-end manufacturing work for multinational corporations, whether it was stitching shoes for Nike or assembling iPads for Apple.
In the last few years, though, the anxiety has shifted a bit. Instead of worrying we'll be undercut on the price of manual labor, the concern is we could actually be out-competed in higher-end markets. You hear it when Democrats like President Obama talk about China winning the race on green jobs. And it came to my mind this week, thanks to a piece in Bloomberg Businessweek on China's growing prowess in heavy industry.
Fisker Considers Overseas Options for Building Second Car
By Jeff Plungis and Alan Ohnsman - Bloomberg.com
Fisker Automotive Inc., maker of plug-in luxury cars, is considering building its second model overseas instead of following through on a U.S.-backed plan to use a Delaware plant, Chief Executive Officer Tom LaSorda said.
The former General Motors Co. plant in Wilmington remains the company's first choice for production of the new model, now called the Atlantic, LaSorda said late yesterday at a news conference in New York.
The company will make a decision at the end of the summer, LaSorda said. It will be a business decision based on "what's best for the company," not on the outcome of negotiations to get the rest of its U.S. Energy Department funding that was cut off last year, he said.
Defenses brace for N. Korean rocket launch
By Shaun Waterman - The Washington Times
The United States and its allies are deploying missile defenses on land and sea so they can, if necessary, shoot down a multistage rocket thatNorth Korea says it will launch within a few days.
Aviation and maritime authorities in Japan andthe Philippines ordered all aircraft and boats to avoid the announced flight path of the rocket.
Japan and South Korea have said they will destroy the rocket or any falling parts of it if it threatens their territories. North Korea, which claims it is putting a weather satellite into orbit, says it will launch the rocket sometime from Thursday to Monday.
Clinton Joined by Gemba in Warning North Korea on Launch
By Sangwon Yoon and Nicole Gaouette - Bloomberg.com
The Group of Eight foreign ministers meeting in Washington this week should deliver "a very strong message" against North Korea's plans to launch a satellite within days, U.S. Secretary of State Hillary Clinton said.
"We share a strong interest in stability on the Korean peninsula," Clinton told reporters after meeting in Washington with Japanese Foreign Minister Koichiro Gemba yesterday. "And we believe that strength and security will not come from more provocations but from North Korea living up to its commitments and obligations."
Why Syria should matter to Americans
By Ashley Fantz, CNN
(CNN) -- In between taking care of their families, working and trying to keep up with everyday life, many Americans have caught at least a couple stories about Syria. Many probably know that clashes between government forces and protesters who want the country's president to relinquish power have become increasingly bloody over the past several months. Much of that violence has been represented in online videos, ostensibly that Syrians have posted, suggesting the slaughter of children and families.
It's horrible. No one would argue anything else. But there is violence in many corners of the world. Why should what's happening in Syria be especially important to Americans? It's clear a lot of people think it's not. Several readers reacted to Tuesday's top story on CNN about Syria by commenting: "Zzzzzz not our problem" and "Anyone surprised? *yawn*."
Iran Talks Must Yield a Deal Even Reagan Could Accept
By the Editors - Bloomberg.com
Apologies to Ronald Reagan as we mangle his catchphrase, but what the U.S. and other world powers need to do in negotiations with Iran later this week is to "accept, but verify" an Iranian nuclear-fuel program that's limited to producing low civilian-grade fuel.
Only the most reckless gambler would bet on a breakthrough in the talks, due to take place in Istanbul on April 14. Ten years of abject diplomatic failure, distrust and Iranian filibustering have fed a justifiable cynicism. Nor is an election year a good time to ask President Barack Obama to make the kinds of compromises that any negotiated deal would have to include.
Gold Bounce Could Be Just That, Not a QE Bet
By Matt Day
Gold is paring earlier gains, a sign that today's early rise could be more the result of bargain-hunting after futures slid to 2-month lows last week–rather than funds placing new bets in expectations of more quantitative easing from the Fed.
Morgan Stanley: 'We still like Gold'
even after the metal fell to an 11-week low
LONDON (Commodity Online): "We still like gold" even after the metal fell last week to an 11-week low, said Morgan Stanley in a weekly commodity research note.
"We believe that the recent weakness in gold is a good entry point as some elements of the recent selling pressure appear to be at odds with the FOMC's still-dovish position," Morgan Stanley added.
Global Reserve Currencies, the Triffin dilemma and gold's role When the U.S. dollar was set as the globe's reserve currency the world missed the chance to put something in place that could really have worked. If this can be resurrected would there be a place for gold?
Author: Richard (Rick) Mills - Mineweb.com
COQUITLAM, BC - Trade imbalances - deficits and surpluses - between nations are one of the major reasons for financial crises. Countries become trapped in a vicious spiral - they accumulate debt because they are sustaining a trade deficit, the bigger their debt grows year after year, the harder it becomes to generate a trade surplus.
Only the countries with a trade surplus have any room to manipulate policy, there's very little debtor nations can do.
Massive, Catastrophic Spike in Interest Rates Still Not Happening
By Matt Phillips - WSJ.com
In yield on the 10-year note, bond market shows it isn't dead yet.
Like a geek at the keg party, the Treasury bond market is doing its best imitation of "I'm-not-dead-yet" bit from Monty Python's Holy Grail.
Prices for I.O.U.s from Uncle Sam have jumped quite a bit since last Friday's somewhat disappointing jobs report. The weak update on the labor market has some once again wondering whether the Fed is going to launch some sort of bond-buying program aimed at supporting the economy. That's pushed bond prices higher.
An Imperfect Union: Europe's debt crisis
Ten European countries are in recession and three have needed bailouts to avoid default. How could this impact the U.S. economy? Steve Kroft reports.
Cracks in Europe
BY DOUGLAS NOLAND - FinancialSense.com
There were important developments this week on the liquidity analysis front. Tuesday's release of the Federal Open Market Committee (FOMC) minutes (March 13 meeting) threw chilled water on market expectations for near-term additional quantitative easing. In Europe, Wednesday's auction of Spanish 10-year bonds disappointed increasingly nervous markets. Demand for Spain's debt has waned. This is a serious issue for a country suffering from deep recession, a troubled banking sector and ongoing borrowing requirements. Even from a bearish perspective, one would have expected the ECB's massive liquidity operations to have bought Spain more than just a few short months.
A Serious Threat to Western Nations
BY JR NYQUIST - FinancialSense.com
On 21 September 1999 Richard L. Palmer, President of Cachet International, Inc. testified on "the infiltration of the Western financial system by elements of Russian organized crime before the House Committee on Banking and Financial Services…." His full testimony can be read at the Web site for the Committee on Financial Services – Democrats. Palmer's testimony, like that of many experts, has never been placed in proper context.
Palmer warned the House Committee of "serious threats to Western nations." He had worked as an Army intelligence officer in Europe, and served 20 years in the Operations Directorate of the CIA. His final assignment was as Chief of Station in the former Soviet Union from 1992 to 1994. For several years he monitored criminal activities related to the Russian mafia. Palmer told the Committee he had direct experience working with former Soviet security and police services, "as well as members of Russian banking, business, Organized Crime and corrupt officials."
Europe on the Brink -- A WSJ Documentary
In this documentary, Wall Street Journal editors and reporters examine the origins of Europe's debt crisis and why it spread with such ferocity to engulf much of the continent and threaten the entire world.
Bernanke Sees Need for
More Regulatory Curbs on Shadow Banking
Joshua Zumbrun and Steve Matthews - WashPost.Bloomberg.com
April 9 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke called on regulators to stem risks from "shadow banking" operating beyond traditional oversight and favored steps to promote the "resiliency" of money market funds.
"An important lesson learned from the financial crisis is that the growth of what has been termed 'shadow banking' creates additional potential channels for the propagation of shocks through the financial system and the economy," Bernanke said today in a speech in Stone Mountain, Georgia.
Is the Fed Promoting Recovery or Desperation?
BY JOHN HUSSMAN PHD - FinancialSense.com
On Friday, the Department of Labor reported that March non-farm payrolls increased by 120,000, falling well short of consensus expectations in excess of 200,000. For our part, we continue to expect a deterioration in observable economic variables, with weakness that emerges gradually and then accelerates toward mid-year. On the payroll front, our present expectation is that April job creation will deteriorate toward zero or negative levels.
Immediately after the payroll number was released, CNBC shot out a news story titled "Disappointing Jobs Report Revives Talk of Fed Easing." Of course it does, because this remains a market dependent on sugar. And with little doubt the Fed will eventually deliver it - perhaps following a market plunge of 25% or more - but with little doubt nonetheless, because like the indulgent parent of a spoiled toddler, the FOMC can't stand to see Wall Street throw a tantrum without reaching for a lollipop.
Why the US is becoming a nation of renters
Fear of Buying: The Psychology of Renting (Part 5 of 5)By Barry Ritholtz
Way back in 2005, as we were approaching the peak of the Real Estate frenzy, David Leonhardt published an interesting and rather contrarian article, Is It Better to Buy or Rent?. The Pulitzer prize winning business reporter for the New York Times wrote:
"But renting might deserve another look right now. After five years in which rents have barely budged while house prices in New York, Washington, Los Angeles and elsewhere have doubled, renting has become a surprisingly smart option for many people who never would have considered it before."
That was 2005 — since then, the Real Estate market crashed 35% nationally. Rents have risen dramatically. After under building rental units for a decade or longer, Home builders have been increasing the percentage of multi-unit homes and apartments they are constructing. The Architecture Billings Index has risen. Not owning a home has increasingly become the first choice for many new households.
We have become a Nation of Renters
Predicting Recession with U.S. State Co-Incident Indicators
BY DWAINE VAN VUUREN - FinancialSense.com
Common knowledge tells us that to forecast recession with some lead (advance warning) means we need to use leading indicators. However a special characteristic of the 50 state-wide co-incident indicators maintained by the Philadelphia Fed allows us to build an early warning system for recessions.
In our previous research titled "Dating NBER Recessions with Philadelphia Fed State coincident indices" we showed how a specific sub-set of 50 US states were more "sensitive" to recession and allowed us to date recessions in a co-incident fashion with a very high degree of accuracy (an r-squared of 0.96 to NBER which is very high.) You can also download a PDF version of this research we published in 2011 for peer-review at the Social Sciences Research Network (SSRN)..
How to Invest in a U.S. Manufacturing Boom Trends suggest America's manufacturing renaissance is just getting started. Here's what investors need to know.
By JACK HOUGH - SmartMoney.com
Investors who have favored emerging markets like China in recent years should pay attention to another growing manufacturing center. It boasts plenty of skilled workers; cheap and abundant energy; stable institutions; and a large middle class that likes to shop.
It is the U.S., where a long industrial decline might be in reverse.
In March, manufacturing expanded for the 32nd straight month, and contributed 37,000 of the 120,000 U.S. jobs added, the government reported. That's partly because of the ongoing recovery from the Great Recession. But the economy is also changing.
Microsoft to build new data center in Wyoming The company received $10 million in incentives
from the state to locate the facility there
By Nancy Gohring - Computerworld.com
IDG News Service - Microsoft plans to build a new data center, this time in Cheyenne, Wyoming.
It won't be considered a "mega data center," but it will cost US$112 million to build. Microsoft said initially it will employ 17 people to work there but ultimately it will need 40 people. The facility is expected to open in the spring of 2013.
Microsoft didn't say specifically which of its services it will operate from the data center, which will serve the Mountain West region for the company.
Caterpillar's big bet on the U.S. economy
By John D. Stoll
(Reuters) - It hasn't been long since Caterpillar Inc (CAT.N) looked like the typical resident of the Rust Belt. Having misjudged how deep the U.S. economy would decline, the world's largest maker of construction machinery reduced its workforce by 33,000 people worldwide in 2009, closed plants and posted lower profits.
But the Peoria, Illinois-based company has mounted a quick recovery and is emerging as the poster child for America's manufacturing renaissance.
In 24 months, 15 Caterpillar facilities have been built or updated in the United States, tens of thousands of workers have been added to the payroll and $2 billion is committed for capital investments on its home soil this year.
Sony to Eliminate 10,000 Jobs, 6% of Workforce, Nikkei Says
By Shunichi Ozasa and Naoko Fujimura - Bloomberg.com
Sony Corp. (6758), the Japanese electronics maker that has forecast a fourth straight annual loss, will slash about 10,000 jobs, or 6 percent of its workforce, the Nikkei newspaper reported on its website.
As many as 5,000 job cuts will come from reorganizing businesses making chemicals and small-and medium-sized panels, the Nikkei reported. George Boyd, a spokesman for the Tokyo- based company, declined to comment when contacted by phone.
GOP lawmaker calls for change
to how government measures unemployment
By Molly K. Hooper - TheHill.com
A Republican lawmaker is intensifying his push for legislation that would change how the government measures the unemployment rate.
Rep. Duncan Hunter (R-Calif.) intends to press GOP leaders to move his bill to include the number of individuals who gave up looking for work in the percentage of jobless claims.
Should the government measure unemployment with Hunter's figure, the unemployment rate would be higher than the current rate of approximately 8 percent — a potentially devastating assessment for the White House, especially in an election year.
U.S. stocks fall on disappointing jobs report
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks fell sharply Monday as investors got their first chance to react to the March nonfarm payrolls report, which showed companies adding fewer jobs than expected.
The Labor Department last Friday said U.S. employers added 120,000 jobs last month, with the number under 200,000 for the first time since November.
"The start of this week will largely be devoted to deciphering the message from Friday's jobs report. The numbers themselves were clearly disappointing," David Kelly, chief market strategist at J.P. Morgan Funds, said in emailed research.
Dow closes below 13,000 for first time in a month
APNews - Townhall.com
Investors had a three-day weekend to brood over disappointing job growth in March. When they got back to work Monday and delivered their verdict, it wasn't good.
Stocks closed sharply lower, sending the Dow Jones industrial average and the Standard & Poor's 500 index to only their second four-day losing streak this year.
The Dow finished down 130.55 points at 12,929.59, its first close below 13,000 since March 12. The S&P ended the day off 15.88 points at 1,382.20. The Nasdaq composite closed down 33.42 at 3,047.08.
Obama renews call for 'Buffett rule' tax on millionaires
By Dave Boyer - The Washington Times
The White House and President Obama's re-election team launched a simultaneous offensive Monday to pressure Republican senators to approve the so-called "Buffett rule," a tax increase on income over $1 million.
"The president supports that legislation and there's going to be a vote in the Senate," presidential spokesman Jay Carney said of a procedural vote scheduled for April 16. He added that the measure "has broad support across the country."
The Shocking Truth
About Unemployment In America In One Chart
By Michael Snyder - TheEconomicCollapseBlog.com
The mainstream media is not telling you the truth about unemployment in the United States. The percentage of working age Americans that are employed is not increasing. In March 2010, 58.5 percent of all working age Americans had a job. In March 2012, 58.5 percent of all working age Americans had a job. So if the employment rate is exactly the same as it was two years ago, then how in the world can the Obama administration claim that things have gotten significantly better since then? According to the Bureau of Labor Statistics, the official unemployment rate in the United States was 9.8 percent in March 2010 and it declined to 8.2 percent in March 2012. So how is this possible if the percentage of working age Americans that have jobs hasn't moved? Well, what they do is they claim that there are millions upon millions of Americans that have "left the labor force". In other words, they claim that there are millions upon millions of unemployed Americans that don't want jobs anymore. Of course that is a total farce, but the mainstream media and most Americans are buying it. They actually believe that the unemployment rate is going down. But the truth is that the unemployment crisis in America has not subsided. In fact, we are pretty much exactly where we were two years ago, and things are about to get a whole lot worse.
A Disappointing Jobs Report Doom at the end of the tunnel?
BY IRWIN M. STELZER - WeeklyStandard.com
It is no easy thing to peer through the fog of recent economic data. Confidence that the economic recovery would accelerate ran into a not-so-good job report Friday. To the chagrin of the president's reelection campaign team, only 121,000 workers were added to private sector payrolls in March, far below expectations, and only about half the previous month's total. The unemployment rate ticked down from 8.3 percent to 8.2 percent, but only because fewer people were seeking work. The Federal Reserve Board's monetary policy gurus are confirmed in their view that it is too soon to tighten policy, and those who have been calling for even looser policy, a QE3, will once again raise their voices.
This Is Not FDR's Social Security
By Robert Samuelson - RealClearMarkets.com
Would Franklin Roosevelt approve of Social Security? The question seems absurd. After all, Social Security is considered the New Deal's signature achievement. It distributes nearly $800 billion a year to 56 million retirees, survivors and disabled beneficiaries. On average, retired workers and spouses receive $1,839 a month - money vital to the well-being of millions. Roosevelt would surely be proud of this, and yet he might also have reservations. Social Security has evolved into something he never intended and actively opposed.
It has become what was then called "the dole" and is now known as "welfare." This forgotten history clarifies why America's budget problems are so intractable.
Utah breach 10X worse than originally thought SSNs on 280K exposed; names, birth dates
of another 500K compromised
By Jaikumar Vijayan - Computerworld.com
Computerworld - The scope of a data breach involving a Medicaid server at the Utah Department of Health is much worse than originally thought. State officials now say that close to 280,000 Social Security Numbers may have been exposed in the incident instead of 25,000, as originally believed.
Less sensitive personal data such as names, birth dates and addresses of another 500,000 people may have also been compromised in the breach, state officials said today.
Today's announcement marks the second time in three days that Utah state officials have upped their estimates of a March 30 intrusion into a server containing Medicaid claims data on Utah residents.
Poll: Support for Supreme Court Up Since Obamacare Arguments
BY MICHAEL WARREN - WeeklyStandard.com
A new poll from Rasmussen shows approval for the Supreme Court among Americans has risen since the Court held its high-profile hearings on Obamacare two weeks ago. According to the poll, which was taken on April 6 and 7, 41 percent of likely voters rate the Court's work as "good" or "excellent," compared with just 28 percent saying the same thing in mid-March, shortly before the oral arguments. Disapproval of the Court's performance remains steady at 19 percent.
Here's more from Rasmussen:
It is impossible to know if the improved perceptions of the court came from the hearings themselves, President Obama's comments cautioning the court about overturning a law passed by Congress, or from other factors. Approval of the court had fallen in three consecutive quarterly surveys prior to the health care hearings.
Health-care law will add $340 billion to deficit, new study finds
By Lori Montgomery - WashingtonPost.com
President Obama's landmark health-care initiative, long touted as a means to control costs, will actually add more than $340 billion to the nation's budget woes over the next decade, according to a new study by a member of the board that oversees Medicare financing.
The study is set to be released Tuesday by Charles Blahous, a conservative policy analyst whom Obama appointed in 2010 as one of two public trustees for Medicare and Social Security. His analysis challenges the conventional wisdom that the health-care law, which calls for an expensive expansion of coverage for the uninsured beginning in 2014, will nonetheless reduce deficits by raising taxes and cutting payments to Medicare providers.
Obama administration diverts $500M to IRS
to implement healthcare reform law
By Sam Baker - TheHill.com
The Obama administration is quietly diverting roughly $500 million to the IRS to help implement the president's healthcare law.
The money is only part of the IRS's total implementation spending, and it is being provided outside the normal appropriations process. The tax agency is responsible for several key provisions of the new law, including the unpopular individual mandate.
Republican lawmakers have tried to cut off funding to implement the healthcare law, at least until after the Supreme Court decides whether to strike it down. That ruling is expected by June, and oral arguments last week indicated the justices might well overturn at least the individual mandate, if not the whole law.
The Real Health Care Debate
By Chris Hedges - Truthdig.com
The debate surrounding the Patient Protection and Affordable Care Act illustrates the impoverishment of our political life. Here is a law that had its origin in the right-wing Heritage Foundation, was first put into practice in 2006 in Massachusetts by then-Gov. Mitt Romney and was solidified into federal law after corporate lobbyists wrote legislation with more than 2,000 pages. It is a law that forces American citizens to buy a deeply defective product from private insurance companies. It is a law that is the equivalent of the bank bailout bill—some $447 billion in subsidies for insurance interests alone—for the pharmaceutical and insurance industries. It is a law that is unconstitutional. And it is a law by which President Barack Obama, and his corporate backers, extinguished the possibilities of both the public option and Medicare for all Americans. There is no substantial difference between Obamacare and Romneycare. There is no substantial difference between Obama and Romney. They are abject servants of the corporate state. And if you vote for one you vote for the other.
David Walker - America at a Crossroads - Jan 2012
America is at a critical crossroads. The choices that U.S. elected officials make in connection with the role of government and its finances over the next 5 years will largely determine whether America's collective future will be better than its past.
Financial Scammers Prey on Seniors
By ANNE TERGESEN - WSJ.com
As the population ages, legal actions taken in response to the financial abuse of older adults are proliferating. But family members can take steps to protect an elder's nest egg.
According to the North American Securities Administrators Association, state securities regulators issued 1,241 enforcement actions — including criminal complaints and cease-and-desist orders — involving investments sold to those ages 50 or older in 2010, the latest year for which data are available. That number was more than double the 506 actions taken in 2009.
Jack Herstein, president of the association and assistant director of the Nebraska Department of Banking and Finance, says state regulators expect the number of enforcement actions to continue to climb, in part because "complaints are rising."
Lose a Smartphone, And You Lose a Lot
By JEANETTE PAVINI - WSJ.com
Say you just lost your wallet with $40 cash in it. You'd feel bad, right? There's the inconvenience of canceling cards, getting a new driver's license, etc. But what if you lost your wallet with $900 in cash in it, plus your address book and your bank passwords? That's what it's like when you lose your smartphone.
Now that really hurts.
How much does it cost to lose a smartphone? One of our readers found out the hard way. Her iPhone was stolen while she was on public transit. She didn't have phone insurance, her renter's insurance didn't cover the loss, and she was told if she canceled her phone contract, she would be liable for a hefty early termination fee. In the end, she paid a small fortune and learned a big lesson.
Some 60 million smartphones and cellphones are lost, stolen or damaged each year, according to Asurion, a provider of cellphone insurance.
Is someone spying on your phone?
Christina DesMarais, Techlicious - MSNBC.MSN.com
You probably know there are plenty of apps you can install on your smartphone to track its location in case it gets lost or stolen. Apple's "Find My iPhone" is one good one and many security apps, such as AVG Mobilation, can track down a phone in seconds.
But what if someone else is tracking you? Is there any chance your boss or spouse could be spying on everything you do on your phone?
It's easy to do. Spy apps are plentiful and can imperceptibly track text and e-mail messages, location, Web sites you visit, who you call and what photos and videos you shoot. The problem is these apps are difficult to detect and run invisibly in the background.
The Weirdest Thing About the Instagram Deal Why did Instagram's founders dilute their own stake in the company just four days before finalizing its acquisition?
By Matthew O'Brien - TheAtlantic.com
A million dollars isn't cool. You know what's cool? Instagram.
A mere 551 days after its founding, the photo-sharing startup sold itself to Facebook for a very cool billion dollars. Even Sean Parker would be impressed. But one part of the sale has confused rather than impressed people. Why did Instagram close a second funding round just four days before it finalized its acquisition?
Cops can request a copy of your complete Facebook activity
By Rosa Golijan - MSNBC.MSN.com
If police officers were to file a subpoena for your Facebook information, they would receive a printout of the data from the social network. This printout would be so detailed, complete and creepy that you should strive to be a good law-abiding citizen, just to prevent it from ever existing.
We have just learned about the true nature of Facebook's responses to subpoenas thanks to documents uncovered by the Boston Phoenix, an alternative weekly.
Secret Plan Underway
To Revive Internet Censorship Bill SOPA Motion Picture Association of America CEO
"confident" similar legislation will become law
By Steve Watson - Infowars.com
Motion Picture Association of America CEO and former Senator Chris Dodd has revealed perhaps more than he intended to in an interview with theHollywood Reporter with regards to the much maligned Stop Online Piracy Act (SOPA).
Despite the fact that the legislation was indefinitely shelved in January, Dodd said he was "confident" that there are conversations going on between Hollywood and Silicon Valley to help revive SOPA.
"Between now and sometime next year [after the presidential election], the two industries need to come to an understanding," Dodd told the magazine.
Hackers strike over cybersecurity bill
By Andrew Feinberg and Brendan Sasso - TheHill.com
The hacker group Anonymous on Monday crashed the websites of two trade associations that support a House cybersecurity bill.
The self-proclaimed "hacktivist" group claimed credit in a YouTube post after the websites for telephone association USTelecom and technology group TechAmerica were brought down by denial-of-service attacks. Such attacks typically flood networks with excessive requests, often by using remotely hijacked networks known as "botnets."
USTelecom CEO Walter McCormick Jr. blasted Anonymous for trying to "coerce, intimidate and stifle speech."
The New Mastermind of Jihad A recently freed Islamist thinker has long advocated small-scale, independent acts of anti-Western terror
By DAVID SAMUELS - WSJ.com
Mohamed Merah, the 23-year-old Islamist gunman who hunted down three Jewish children and a rabbi after murdering three French paratroopers in Toulouse last month, didn't act alone. In his journey from the slums of Toulouse, to the local mosques, to the terrorist training camps in Afghanistan and Pakistan that he described to French police, to filming his murder of the terrified children in order to post video clips on the web, Mr. Merah was following a path marked out years earlier by the coldblooded jihadist theoretician Abu Musab al-Suri.
What is perhaps more disturbing, Mr. al-Suri was recently set free from prison in Damascus, Syria, and his current whereabouts are unknown. Turned over to Syria after his capture by the CIA in late 2005, Mr. al-Suri was released sometime in December (according to intelligence sources and jihadist websites) by the regime of President Bashar al-Assad—a move apparently intended to warn the West of the consequences for opposing his rule.
For This Old Socialist, Maxine Waters,
Socialism Starts at Home
By John Ransom - TownHall.com
If you thought nation's financial services were battered under Barney Frank and Chris Dodd, wait until you see who's batting cleanup for the Democrats in the House.
Maxine Waters, the ranking Democrat on the Capital Markets and Government
Sponsored Enterprises Subcommittee of the House Financial Services Committee and who serves as the deputy whip for the Democrats in the House- and who will take over for Frank now that he is retiring - is embroiled in another scandal involving money and nepotism.
Can Non-Belief Become Mainstream? The Weaponization of Atheism
by JEFF SPARROW - CounterPunch.org
In a few days time, the Global Atheist Convention meets in the Melbourne Convention and Exhibition Centre, a huge building sprawling out next to the Yarra River, just south of the central business district of Australia's second biggest city.
But walk north for fifteen minutes or so to Victoria Street, Fitzroy, and you'll find a much less imposing structure with a much older connection to atheism.
From the outside, there's little to show that what's now called Brenan Hall, a brick building in the St Vincent's Hospital site, was once known, rather grandly, as the Hall of Science. Few Melbournians realise that their city boasts one of the second oldest purpose-built Freethought halls in the world, a meeting place constructed by the Australasian Secular Association in 1889.
Reviving Faith by 'Taking Up Serpents' For a new generation of Internet-savvy Pentecostals,
a century-old practice provides 'anointing'
By JULIA DUIN - WSJ.com
This year's Easter service at the Tabernacle Church of God in La Follette, Tenn., will include many of the holiday's traditional rituals, like Holy Communion and footwashing. There will also be some startling novelties.
"It will be filled with shouting, dancing, speaking in tongues, serpent handling and fire handling," said its 21-year-old pastor, Andrew Hamblin. "We'll celebrate the resurrection of Jesus Christ with a good old time."
Since he opened its doors last fall, Mr. Hamblin's small Pentecostal church, 39 miles north of Knoxville, has grown to almost 50 members, most of them in their 20s. Part of his strategy for expansion has been to use Facebook to publicize the daredevil spiritual exploits of his congregation.
Boeing, Brazil's Embraer sign collaboration pact
Puget Sound Business Journal by Steve Wilhelm
Boeing and Brazilian aircraft maker Embraer S.A. signed a collaboration agreement Monday that codifies what has become a de facto market split between the two.
In the agreement, the two companies committed to collaborate on "aircraft efficiency and safety, productivity and research," in an identical release both sent out. The agreement was signed in Washington, D.C.
Interestingly, the Boeing-Embraer pact comes just a month after aircraft builder Bombardier (which is Canadian) and Comac (which is Chinese) signed another collaboration agreement.
Focused on presidential bid,
Ron Paul has missed 92 percent of votes in 2012
By Eryn Dion - TheHill.com
Rep. Ron Paul (R-Texas) has missed nearly 92 percent of House votes this year while campaigning for president.
Paul's bid for the White House has lost steam in recent weeks, but he has given little indication he will drop out of the race. The congressman has announced he will not seek a 10th term.
The libertarian lawmaker has called for slashing congressional pay and perks. If elected commander in chief, Paul — who now makes $174,000 a year — has pledged to take a salary of $39,336, "approximately equal to the median income of the American worker," according to his campaign website.
Pakistani president makes rare trip to India India's prime minister accepts invitation
to visit Pakistan, reports say
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — The leaders of India and Pakistan met Sunday, with both vowing to pursue better relations between the nuclear-armed nations, according to media reports.
Pakistani President Asif Ali Zardari and Indian Prime Minister Manmohan Singh spoke for nearly an hour in New Delhi, with Singh saying he would accept Zardari's invitation to visit Pakistan by the end of the year.
Billed as private yet still important diplomatically, the meeting marked their first face-to-face meeting since 2009 and the first visit by a Pakistani head of state to India in seven years.
Gold crash on Fed tightening
and euro salvation looks premature Until the rising reserve powers of Asia, Russia and the Gulf regain trust in the shattered credibility of the world's two great fiat currencies - if they ever do - gold is unlikely to crash far or remain in the doldrums for long. `Peak gold' cements the price floor in any case.
By Ambrose Evans-Pritchard -
It has been an unsettling experience for late-comers who joined the gold rush near all-time highs of $1923 an ounce last September. The slide has become deeply threatening since the US Federal Reserve took quantitative easing (QE3) off the table six weeks ago - or appeared to do so - and signaled the start of a new tightening cycle. Spot gold ended the pre-Easter week at $1636.
"The game has changed," says Dennis Gartman, apostle of the long rally who now scornfully tells gold bugs that he is just a "mercenary", not a member of their cult. "They genuflect in gold's direction; we merely acknowledge that it exists as a trading vehicle and nothing more. There are times to be bullish, and times to be bearish … to every season, as Ecclesiastes tells us."
What's the central bank endgame in gold?
By: Chris Powell, Secretary/Treasurer, GATA - GoldSeek.com
"If the naked short position in gold on behalf of the Federal Reserve through its intermediaries is so big that it can drive down the bullion markets with mere paper (and I believe that it is), then what is the likely strategic endgame that these evil people have in mind?
"They obviously know that they are fighting a losing battle against market forces, as Russia, India, and China have no intention of reducing their acquisition of real metal while unloading U.S. treasuries and dollar reserves (though they do that on the sly to avoid crashing the markets). So these guys must have an endgame strategy. But what is it?
What Happens to Gold
if We Enter a Recession or Depression?
By Jeff Clark, Casey Research - GoldSeek.com
Mayan prophecies aside, many of the senior Casey Research staff believe that economic, monetary, and fiscal pressures could come to a head this year. The massive buildup of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression?
Here's an updated snapshot of the gold price during each recession since 1955.
Gold QE3 Scares
By: Adam Hamilton, Zeal Intelligence - GoldSeek.com
Sellers hammered gold again this week on news from the Fed. The minutes from its latest FOMC meeting convinced traders the odds for a third round of quantitative easing are waning. This was the latest in a long line of QE3 scares that have become the bane of gold's existence. But they are merely a distraction from the Fed's ongoing massive monetary inflation behind the scenes, which is very bullish for gold.
Gold has suffered much from QE3 scares. This week's FOMC minutes drove it 3.4% lower in 2 trading days. On the last day of February, gold plummeted 5.1% after the Fed Chairman's testimony to Congress made QE3 look less likely. Gold hadn't seen such a huge down day since December 2008 during the epic stock panic! Surrounding an FOMC meeting in mid-December 2011, gold plunged 8.0% in 3 days.
Jim Rogers: Buy more gold at $1500/oz
NEW YORK (Commodity Online): Jim Rogers has stated that he not only remains optimistic on gold's bullishness but will continue to buy more gold on price weakness. Jim Rogers, the Chairman of Rogers Holdings, was the co-founder of the Quantum Fund with George Soros and is also the creator of the widely tracked Rogers International Commodities Index (RICI)
But even though he is bullish on gold, Rogers admits that short term outlook does not look promising. "I expect the price to decline and when that happens I will buy more", Bloomberg quoted Rogers at a conference in Bucharest on Wednesday. He stated that he will continue to accumulate gold at price levels of $1600/oz bit will buy even more if prices drop to $1500/oz.
Silver has upside potential
and to average $51/oz in 2013, $37.50 in 2012
NEW YORK (Commodity Online): BNP Paribas said that silver has upside potential. "Our positive price profile for silver relies on two assumptions--a higher gold price and higher risk appetite," as per a research note from precious-metals strategist Anne-Laure Tremblay.
"The combination of both is itself dependent on further monetary accommodation, in particular from the U.S. We expect silver to average US$37.50/oz in 2012 and US$51.00/oz in 2013. But when the gold price ends its multi-year rally, the silver price will become very vulnerable to a large correction," the bank added.
The creeping cost of consumer inflation
brought to you by a lower US dollar –
Americans squeezed as inflation
filters into the cost of daily life.
The uncertain employment market of low wage work.
Posted by MyBudget360.com
There are unintended consequences when policy aims at depreciating a currency in favor of bolstering an ailing banking system. TheFederal Reserve has been on a multi-decade mission to lower the value of the US dollar. The primary purpose of this mission is to inflate banks into solvency as they try to work their way out of the massive financial crisis. The amount of troubled real estate loans is still impressive when we look at the temporary sanctuary being provided by the Federal Reserve on their overloaded balance sheet. This luxury is not afforded to your common household and consequently many Americans are now facing higher and higher costs in items like energy even though demand is slightly lower. This occurs for a variety of reasons but a main driver is the declining purchasing power of the US dollar. This permeates over into the employment market that is largely being driven by lower wage positions. Inflation is creeping back into the economy.
The suffocation of unsustainable global debt –
Total global debt is now over $190 trillion
and more than three times global GDP.
Contagion with European Union.
Posted by MyBudget360
The biggest market in the world is the European Union and debt problems are still rippling through the global markets. It is apparent with the financial crisis that the global markets are tied together by large banks and interconnected trade. A problem in the largest market should be unsettling and the unemployment rate in the European Union is now at a 15 year high. The global debt problem was never really solved but papered over with extensions and banking trickery. The US has dealt with much of the debt issues by suspending major accounting rules and stuffing bad loans into the Federal Reserve like a Christmas stocking. The European Union is facing some challenges ahead and all eyes will be watching given the impact of contagion impacts. Greece was only a tiny sliver of the debt issues compared to the major debt restructuring that will be necessary for a large economy like Spain.
The Big Easing
By Daniel Gros - Project-Syndicate.org
BRUSSELS – More than three years after the financial crisis that erupted in 2008, who is doing more to bring about economic recovery, Europe or the United States? The US Federal Reserve has completed two rounds of so-called "quantitative easing," whereas the European Central Bank has fired two shots from its big gun, the so-called long-term refinancing operation (LTRO), providing more than €1 trillion ($1.3 trillion) in low-cost financing to eurozone banks for three years.
For some time, it was argued that the Fed had done more to stimulate the economy, because, using 2007 as the benchmark, it had expanded its balance sheet proportionally more than the ECB had done. But the ECB has now caught up. Its balance sheet amounts to roughly €2.8 trillion, or close to 30% of eurozone GDP, compared to the Fed's balance sheet of roughly 20% of US GDP.
Keiser Report: Anti-Bank Currency (E272)
In this episode, Max Keiser and co-host, Stacy Herbert, discuss getting Zhou Tonged and Jamie Dimon-ed in financial markets. They also discuss bucket shop derivatives, a debit card repo scam and a compound of morons and regulatory flatulence. In the second half of the show Max talks to Michel Bauwens of the P2P Foundation about bitcoin in the virtual world and about pseudo abundance and artificial scarcity in the real world.
Dollar Dims on Fed Speculation
BY MATTHEW WALTER - WSJ.com $$
NEW YORK—The outlook for further actions from the Federal Reserve and other major central banks will likely drive currency markets this week, following Friday's weaker-than-expected U.S. jobs report.
Better U.S. economic data this year had led investors to reduce expectations for more stimulus from the Fed. However, the 120,000 jobs added in March came in below economists' forecasts, reviving speculation that the Fed could implement a new round of quantitative easing to boost the economy. Another round of outright bond buying by the Fed would tend to weaken the dollar by increasing the supply of money circulating.
Black Markets In Gold And Cigarettes Are Exploding In Greece
By Joe Weisenthal - BusinessInsider.com
Two separate stories in Greek newspaper Ekathimerini appear to show a common theme in terms of what's happening to the Greek economy as the state becomes more and more desperate for revenue at a time when the private sector is more and more desperate to avoid paying it.
The black market for cigarettes is exploding:
Sales of smuggled cigarettes have more than trebled in Greece, amounting to an estimated 3.5 billion euros per year, or 15 percent of the legal market, as the worsening of the economic recession and repeated price hikes for tobacco products have frustrated smokers.
Spain Will Exit The Eurozone First—This Year
By Gonzalo Lira
In the LiraSPG Scenario "When The Euro Breaks", I discussed what would happen to the euro and the eurozone when those countries — unable to continue under their massive debt burdens — began exiting the European monetary union.
One of the assumptions I made was that one of the smaller nations of the eurozone would leave the monetary union first, thereby encouraging one of the bigger nations to follow their example and leave as well. I postulated that the small country would likely be Greece, and that the large country would probably be Spain.
[UK] Workers to be offered
guaranteed pensions
under new plans Workers will be offered a new type of guaranteed pension to replace gold-plated final salary schemes under radical plans being drawn up by ministers.
By Robert Winnett - Telegraph.co.uk
Steve Webb, the pensions minister, says today that private sector workers could be offered a guaranteed pension pot on retirement — or a retirement income that is fixed if they agree to work longer.
The new schemes would replace final-salary pensions, which have now been abandoned by the vast majority of private companies and are only typically available in the public sector.
Austerity cold shower reality check
Former European Central Bank chief Jean-Claude Trichet gives an exclusive interview to RT emphasizing the fact that developed countries must stick to sound policies of not spending more than they earn, which has little to do with austerity measures.
China doomsayer sees crash coming
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — China's consumption boom is drawing to a close, according to one economist's contrarian view, which calls for no growth — or even a contraction — in the Chinese economy and the advent of an era of deflation and weaker spending.
Investments leveraged to the rise of the Chinese consumer, ranging from Australian miners to luxury-handbag makers and even iPhones are due for a reality check, according to Jim Walker, founder and managing director of the Hong Kong-based economic research company Asianomics.
Economic Hit Men: Paid Professionals
who Cheat Countries Out of Trillions
On the Thursday, April 5 edition of the Alex Jones Show, Alex talks with John Perkins, author of the New York Times bestseller Confessions of an Economic Hit Man. Perkins spent the 1970s working as an economic planner for an international consulting firm. In his book he describes how the globalists force the economic hegemony of the banksters, the IMF and World Bank on victim nations in the third world. "Economic hit men are highly paid professionals who cheat countries around the globe out of trillions of dollars," Perkins writes. He is also the author of The Secret History of the American Empire: The Truth About Economic Hit Men, Jackals, and How to Change the World and Hoodwinked: An Economic Hit Man Reveals Why the World Financial Markets Imploded -- and What We Need to Do to Remake Them.
Stock Futures Plunge Following Weak Jobs Report
By Lu Wang - Bloomberg.com
U.S. stock futures fell, signaling more Standard & Poor's 500 Index losses following the biggest weekly retreat of the year, after American employers added fewer jobs than forecast in March.
S&P 500 (SPX) futures expiring in June slumped 1.3 percent to 1,372.70 at 7:07 a.m. Tokyo time following the benchmark index's 0.7 percent weekly loss. Dow Jones Industrial Averagefutures dropped 143 points, or 1.1 percent, to 12,835. Nasdaq-100 Index futures retreated 1.2 percent to 2,721.50. U.S. stock exchanges were shut for Good Friday on April 6, when the employment report was released.
FDA for Derivatives Won't Defuse Wall Street's Bombs
By William D. Cohan - Bloomberg.com
Given the role that Wall Street's reckless use of derivatives played in causing the Great Recession, I can understand the desire for new ways to regulate financial instruments.
For example, on March 31 Gretchen Morgenson of the New York Times advocated creating a federal agency to test new financial products in the same way the Food and Drug Administration tests pharmaceuticals before they are allowed onto the market -- "an agency that examined new financial instruments and ensured that they were safe and benefited society, not just bankers." The idea was not her own, although she thought it a good one. Morgenson properly credited an academic paper by two University of Chicago professors -- Eric A. Posner, who teaches law, and Glen Weyl, an assistant professor in economics -- who had a Bloomberg View op-ed article on the subject the following day.
Spring brings signs of hope and renewal —
except in the housing market
By Barry Ritholtz - WashingtonPost.com
Ahhh, winter is finally over. Each year about this time, flowers push up through the soil, trees begin to bud — and the stories about a real estate recovery appear.
Am I skeptic? But of course. To understand why, let's consider a few questions:
What is shadow inventory?
This is important, as lowering the total inventory of houses for sale is how prices stabilize and sales volume moves higher.
Most buyers are familiar with ordinary inventory — houses listed for sale with real estate agents or by owners. Unfortunately, shadow inventory adds to the backlog. It includes bank-owned real estate, distressed houses not yet for sale, short sales and delinquencies that have not yet defaulted. Foreclosure properties are also in the shadow inventory.
Misguided Faith in an Economic Recovery
By Joel Bowman - dailyreckoning.com
04/05/12 Buenos Aires, Argentina – We watched last night the rows of cars below our balcony, snaking their way out of the pollution and congestion of South America's second largest metropolis, out into the peace and calm of the surrounding campos and estancias.
The usual rabble and riff-raff have left for the long weekend. The city is empty. And quiet.
Still, there is reckoning to be done…
Markets continue with what Eric Fry yesterday dubbed the "everything off" trade. "Investors are dumping everything with a ticker symbol," observed Mr. Fry. "US stocks, foreign stocks, government bonds, corporate bonds, precious metals, crude oil and almost every other commodity"…everything is "off."
It's All About Jobs
By: John Mauldin - GoldSeek.com
....Just Trying to Keep Up
March saw "only" 120,000 jobs created. Expectations were for 200,000 new jobs. It wasn't all that long ago that any positive number would have been seen as good, but with the last six months averaging 200,000 jobs, this was disappointing. It gives force to the worry that once again we could see the employment numbers get soft during the spring and summer. And adding to interest in the topic, the employment numbers will take on a decidedly political tone this summer, as every poll shows that jobs and the economy is the #1 thing on voter's minds. This will be underscored only four days before the presidential election on Tuesday, November 6, as the jobs report for October is scheduled to be released on Friday, November 2. Think that one won't be analyzed more than usual? I keep writing that the current release is adjusted so often that it is hard to see more than a trend in the actual monthly releases, but that will not keep pundits from using the release to support their candidate with all the spin they can muster.
Job Gains in U.S. Trail Most-Pessimistic Forecasts: Economy
By Timothy R. Homan - Bloomberg.com
Hiring by American employers trailed forecasts in March, casting doubt on the vigor of the more than two-year-old economic expansion.
The 120,000 increase in payrolls reported by the Labor Department in Washington today was the smallest in five months and less than the most pessimistic estimate in a Bloomberg News survey of economists. The unemployment rate fell to 8.2 percent from 8.3 percent as people left the labor force.
Introducing the 24/7 Wall St. Wire
247wallst.com
The US economy added only 120,000 jobs in March–a huge disappointment. Most consensus forecasts were for 210,000. There had been a concern that improved hiring over the last five months would need to pause.
Unemployment stayed at 8.2%. The most damage done to employee count was a drop in retail jobs.
The BLS reports
Employment rose in manufacturing, food services and drinking places, and health care, but was down in retail trade.
What the 'End of Retail' Means for Young Workers
By Karl Smith - TheAtlantic.com
Quickly tying together a bunch of threads: My general take is that neither GDP nor the Employment-Population Ratio is a stat we should care about for its own sake. By that same token, in-and-of-itself, I don't consider declines in unemployment from people leaving the workforce to better or worse than declines from people becoming unemployed.
There are lots of reasons, but fundamentally because these are a function of choices people make about their lives.
When lots of people chose to work, GDP will increase, the population-employment ratio will rise, and declines in unemployment will be dominated by folks becoming employed. When lots of people choose to retire, stay in school longer or stay home to raise a family the trends will reverse.
The Jobless Go Begging in Washington State
ARK - Truthdig.com
Thousands of jobless workers in Washington state will lose their unemployment checks starting later this month when the federal government begins withdrawing emergency benefits because overall state unemployment has dropped below 8.5 percent.
The problem is that the system ignores individual workers' needs among the roughly 175,000 people collecting unemployment checks.
Older workers face challenges in D.C. job market
By Stefanie Dazio - WashingtonPost.com
Frances China needed to learn how to use a computer.
So the 57-year-old woman from Northwest Washington turned to the best option she had: her grandson Jilani. The 11-year-old helped her create a PowerPoint presentation and learn about the machinations of Microsoft Office.
In the process, Jilani demonstrated the stark skills gap facing older workers like his nana. "He's my tutor," China said.
The divide between China and her grandson underscores the challenges facing older unemployed workers in the District and elsewhere as they try to find a place in an economy that has been slow to create jobs in the aftermath of the Great Recession.
The phony economic deception machine –
JP Morgan Chase CEO earns $23 million in 2011
while 2.7 million foreclosures are filed in the US.
GDP at record levels but employment figures
down by 5.3 million from their peak.
Posted by MyBudget360.com
The US economic and political system is doing an excellent job sealing off opportunities for millions that aspire to be part of the middle class. Many are starting to realize that the system is rigged in favor of large financial institutions and those with political connections. The idea of raw success based on talent can be thrown out the window with the corporate welfare generosity leveled at the too big to fail financial institutions. Many Americans are being told that forced austerity is a necessary part of rebalancing yet the CEO of JP Morgan Chase just received $23 million in 2011 while tens of thousands of foreclosures riddled Chase's balance sheet. Earned success? If we examine real GDP the facts show the US economy is as large as it has ever been but we are running it with over 5,300,000+ fewer workers. The system is designed to extract economic rents from the public and drive them into a few select sectors. The working and middle class are feeling this change deeply as noted by the over 5 million fewer workers that we have.
Man Knocked Out, Stripped Naked
And Robbed Of Everything
As Crowd Of Onlookers Laugh Hysterically
By Michael Snyder - EndOfTheAmericanDream.com
How would you feel if a group of young thugs punched you in the face, knocked you to the ground, stripped you naked and took off with your car keys, your watch, your money and your cell phone? Well, that is exactly what happened to one man in Baltimore recently and it was all caught on camera. Perhaps the most frightening thing about this incident is that nobody from the crowd of onlookers helped this man. Instead, most of them appear to have been too busy laughing hysterically at what was happening to him. Sadly, this kind of behavior is becoming all too common on the streets of America. The hearts of our young people are growing very cold, and in a lot of major U.S. cities it is simply not safe to go strolling around after the sun goes down anymore. The man in the video that you are about to see is lucky to have gotten away alive. When he was punched in the face he fell directly backward and in the video you can hear the sound of his skull loudly hitting the pavement. But instead of checking to see if he needed medical help, the crowd around the man descended on him like a bunch of crazed looters. This incident happened on St. Patrick's Day, but it is only now that the media is starting to take notice of this video.
Is There a Fiscal Crisis in the United States?
By SIMON JOHNSON - NYTimes.com
There are two competing narratives about the federal government budget in the political mainstream today.
The first is that we are, or soon will be, in crisis, because of runaway government spending. To avoid this crisis, we should cut spending by a great deal and as soon as possible.
The second view is that all talk of a fiscal crisis is essentially a hoax; we have a jobs crisis, and we should spend as much as necessary to get us out of the deep recession. From this perspective, we should fix the budget once the economy is back on an even keel.
Food Banks Fear They Will Fall Short
in Efforts to Feed the Nation's Hungry
Press Release - MarketWatch.com
CHICAGO, April 4, 2012 /PRNewswire via COMTEX/ -- Higher Food and Gas Prices and Decline in Government Food Donations Cited
Higher food costs and rising gas prices could prove to be damaging to the nation's food banks and their ability to provide adequate emergency food to the nearly 49 million Americans who are currently living at risk of hunger, Feeding America, the network of the nation's largest food banks, announced today.
Although recent reports indicate that the economy is beginning to improve and that the unemployment rate is also beginning to shrink, Feeding America's food banks continue to face significant struggles as America recovers from the worst economic recession in decades.
4% solution for retirement doesn't fit all Need to consider age, gender, risk tolerance, and more
By Robert Powell, MarketWatch
BOSTON (MarketWatch) — The 4% withdrawal strategy, a strategy used to produce income in retirement by many financial advisers and do-it-yourselfers, is, to put it bluntly, oversimplistic. So say the authors of a new white paper from Merrill Lynch's Wealth Management Institute.
"We find this rule to be overly simplistic," said the authors of Merrill's white paper. "Sustainable spending rates depends critically on a (person's) age, gender, and risk tolerance."
Obama's Own War on Women
By Ken Blackwell - PatriotPost.us
Editor's note: This column was coauthored by Bob Morrison
Anti-war presidential candidate Gene McCarthy once described reporters as being like blackbirds on the telephone lines: One lands, they all land; one flies off, they all fly off.
We're seeing those media blackbirds again. They're going on and on about conservatives and their so-called war on women. It seems if you don't think religious institutions -- hospitals, soup kitchens, universities -- should be forced to provide coverage for drugs that can cause abortions, then you are making "war" on women.
Lake Tahoe may challenge Denver for 2022 winter Olympics
Denver Business Journal by Eric Young
California and Nevada officials say they will work together to lure the 2022 Olympic Winter Games to Lake Tahoe, which straddles the state line.
That could put the Tahoe region in competition with Denver, which also is exploring the idea of mounting a bid for the 2022 games.
At the Denver Business Journal's "State of the Cities" forum in February, Denver MayorMichael Hancock called the Olympics a "huge opportunity for us. We've got to be smart and thoughtful about it, and that's what the exploratory process is all about."
Selling You on Facebook
Many popular Facebook apps are obtaining sensitive information about users — and users' friends — so don't be surprised if details about your religious, political and even sexual preferences start popping up in unexpected places.
By JULIA ANGWIN and JEREMY SINGER-VINE
Not so long ago, there was a familiar product called software. It was sold in stores, in shrink-wrapped boxes. When you bought it, all that you gave away was your credit card number or a stack of bills.
Now there are "apps" — stylish, discrete chunks of software that live online or in your smartphone. To "buy" an app, all you have to do is click a button. Sometimes they cost a few dollars, but many apps are free, at least in monetary terms. You often pay in another way. Apps are gateways, and when you buy an app, there is a strong chance that you are supplying its developers with one of the most coveted commodities in today's economy: personal data.
Senator Al Franken: 'privacy is a casualty'
of Google and Facebook's success
By Nilay Patel - BusinessInsider.com
Senator Al Franken gave a rousing speech to the American Bar Association's Antitrust Section last night, calling for greater antitrust oversight of large media and tech companies as a way to ensure greater privacy protections for Americans. That's not surprising by itself — Franken is the chair of the new Senate subcommittee on Privacy, Technology, and the Law, after all — but the senator took the opportunity to blast Google for its controversial new privacy policy and suggest that Facebook would soon have every incentive to share private data in the absence of meaningful competition.
"YOU ARE NOT THEIR CLIENT. YOU ARE THEIR PRODUCT."
Franken opened by talking about his opposition to both the NBC / Comcast merger and the failed AT&T / T-Mobile deal, but he was most blunt about the privacy threat facing internet users every day. Consumers are "out on a limb when it comes to legal protections" for personal information, said Franken, who lamented that the protections citizens have against government intrusion against privacy don't apply to corporations.
I'M TALKING TO YOU - Bill Whittle
At current spending rates, there will be no U.S. Economy by 2027. That's not Bill's opinion: that's the opinion of the non-partisan Congressional Budget Office, using the Obama Administration's own numbers, and Treasury Secretary Timothy Geithner doesn't even bother to deny it.
Strip-Search Case Reflects Death of American Privacy
By Noah Feldman - Bloomberg.com
To be the swing voter, you have to be willing to swing. In the last three weeks, U.S. Supreme Court Justice Anthony Kennedy has shown how it's done.
First he wrote the majority opinion in a landmark 5-4 case establishing a constitutional right to an adequate lawyer in plea-bargaining negotiations. Liberals were enthused. Yet in his tough questioning during the Obamacare arguments, he shook up the conventional wisdom that mandatory coverage would be upheld comfortably. Liberals were not enthused. Then, as a coda, he wrote the majority opinion in a 5-4 case allowing jails to strip-search anyone being put into the general prison population -- even without suspicion, and even after the most trivial misdemeanor arrest. The same liberals who loved him in March are prepared to loathe him in April.
US government the best money can buy?
Money's influence in politics is well known, and whether on Wall Street or K Street, people with money influence lawmakers. Many Americans are tired of the business as usual practices and it is evident with the rise of the Occupy Wall Street protests. Should laws be passed based on how much money you can throw at Congress? Francis Megahy, a filmmaker, joins us to discuss whether the US government is the best money can buy.
Agenda21 – Wildlands Plan is in full swing in California –
42 Roads to close in El Dorado National Forest
The PPJ Gazette
PRESS RELEASE Court Order Prohibits Motorized Vehicle Travel
on 42 Popular OHV Routes
Release Date: Apr 4, 2012 Placerville, CA
Forty-two off-highway-vehicle routes that cross meadows in the Eldorado National Forest may be closed to motor vehicle travel this recreation season while the Forest Service completes an environmental analysis, announced Eldorado National Forest Supervisor Kathy Hardy.
The potential travel prohibitions are the result of a February 2012 court order by U.S. District Court Judge Lawrence Karlton. The order said the Forest Service failed to comply with the National Forest Management Act in 2008 when it designated "open for public motor vehicle use" portions of 42 routes that cross meadows. Judge Karlton ordered the Forest Service to "set aside" the decision that designated these segments as open and to reconsider the decision.
The Persian Knot
By Joschka Fischer - Project-Syndicate.org
BERLIN – The negotiations between Iran and the five permanent members of the United Nations Security Council, plus Germany, over Iran's nuclear program are entering a new, and probably decisive, stage. The negotiations have been going on for almost a decade, with long interruptions, and whether a breakthrough will come this time is anyone's guess. But the situation has never been as serious as it is today, and peace hangs in the balance.
After the recent visits by Israeli Prime Minister Binyamin Netanyahu to Washington, DC, and by Turkish Prime Minister Recep Tayyip Erdoğan to Tehran, a foggy situation is nonetheless becoming clearer. It appears that US President Barack Obama has won time by drawing a line in the sand – the start of an explicit Iranian nuclear-weapons program – and by assuring Israel of America's readiness for military action should negotiations fail.
Peace Plan for Syria Near Collapse Syria demands guarantees from rebels
before withdrawing from cities
By Alice Fordham - WashingtonPost.com
BEIRUT — A U.N.-brokered peace plan for Syria appeared close to collapse Sunday as the government demanded a written guarantee that the rebels will lay down their arms before authorities withdraw troops from cities and towns.
The statement cast serious doubt on hopes that the peace plan — the only initiative backed by Syrian allies China, Russia and Iran as well as the United Nations, the Arab League and Syria — could quell the violence stemming from a government crackdown on a year-long uprising against the government of President Bashar al-Assad.
PTG: CLOSED for Good Friday - no new radio show until Monday
Gold May Advance for Second Day
on Spanish Debt Concern
By Sungwoo Park - Bloomberg.com
Gold may climb for a second day, trimming the first weekly drop in three, as Spain's rising borrowing costs fueled concern that the region is still struggling to contain its debt crisis, spurring haven demand.
Bullion for immediate delivery was little changed at $1,630.90 an ounce at 10:37 a.m. Seoul time. While the price rose 0.6 percent to $1,631.23 yesterday, the biggest daily gain since March 26, it's still 2.2 percent lower this week. Trading on the Comex in New York is closed today for a holiday.
Still accommodative fed policy
should help put a floor under Gold prices: HSBC
LONDON (Commodity Online): United States monetary policy remains accommodative and should offer at some support for gold even if the Federal Reserve does not undertake a third round of quantitative easing, said HSBC in a daily research note.
According to the bank, gold prices tumbled late Tuesday and remained on the defensive overnight after minutes from the March Federal Open Market Committee showed policy-makers less keen to undertake further stimulus, triggering long liquidation in bullion markets. This comes after a string of stronger U.S. economic reports in recent months.
Blythe Masters On The Blogosphere,
Silver Manipulation, Gold-Axed Clients
And Doing The "Wrong" Thing
Submitted by Tyler Durden - ZeroHedge.com
In an article that is about three years overdue, "JPMorgan's practices bring scrutiny" the FT finally takes aim at that other "vampire squid", JP Morgan, which technically is incorrect: because if Goldman is a nimble and aggressive creature, with infinite tentacles in every governmental office, and unencumbered by massive liabilities, JPMorgan is just as connected, but unlike Goldman, it is a behemoth in every other possible capacity, and with its trillion in deposits, matched by tens of billions in bad loans, is a true Bank Holding Company. As such 'Jabba the Hutt' would be a far more appropriate allegory to describe the the firm, whose reach, scope and scale lead the FT to classify it as "Three times a pallbearer, never a corpse."
Silver's Trend & the Death of Technical Analysis
BY STEVE ST. ANGELO - FinancialSense.com
The death of technical analysis has arrived. What took place in the markets (especially in the precious metals) on April 3rd & 4th proves this in spades. There were several calls made prior to the takedown, by some very well known individuals in the precious metal field, that became NULL & VOID when either bottoms or chart patterns failed.
I am not going to name names, but I would imagine those who have been following the gold and silver markets for quite some time, know who I am talking about. That being said, I don't blame them one bit. Trying to make short term calls based on technical analysis presently has become nearly impossible when the markets are constantly manipulated. I think it is time that we all just realize a monkey throwing a dart at a trend line on a wall is just as useful as short term technical analysis.
19 Signs Of Very Serious Economic Trouble On The Horizon
By Michael Snyder - TheEconomicCollapseBlog.com
Most Americans have no idea how much economic trouble is heading our way. Most of them just assume that everything will eventually "return to normal" just like it always has before and that those running our economy "know what they are doing" and that we should trust them to do their jobs. Unfortunately, these beliefs are being reinforced by the bubble of false hope that we are experiencing right now. For example, it is being reported that weekly unemployment claims in the United States have fallen to a four-year low. That is a very good thing. Let us hope that unemployment claims go even lower and that the current period of stability lasts for as long as possible. We should enjoy these last fleeing moments of tremendous prosperity for as long as we can, because when they are gone they won't be coming back. As I noted the other day, all of this false prosperity in the United States has been financed by the 15 trillion dollar party that we have been enjoying. We are adding about 150 million dollars to our debt every single hour so that we can continue to enjoy an inflated standard of living. Unfortunately, nobody in the history of the world has ever been able to keep a debt spiral going indefinitely, and our debt bubble will burst eventually as well.
Egan Jones Downgrades USA
From AA+ To AA, Outlook Negative
Submitted by Tyler Durden - ZeroHedge.com
A few weeks ago when discussing the imminent debt ceiling breach, and the progression of US debt/GDP into the 100%+ ballpark, we reminded readers that inFebruary S&P said it could downgrade the US again in as soon as 6 months if there was no budget plan. Not only is there no budget plan, but the US is about to have its debt ceiling fiasco repeat all over as soon in as September. Which means another downgrade from S&P is imminent, and continuing the theme of deja vu 2011, the late summer is shaping up for a major market sell off. Minutes ago, Egan Jones just reminded us of all of this, after the only rating agency that matters, just downgraded the US from AA+ to AA, with a negative outlook.
The Coming China Super Crisis
BY CLIF DROKE - FinancialSense.com
The big X-factor for the stock market in the coming months will clearly be China. During periods when any of the major weekly or yearly cycles are bottoming and the market is vulnerable to a correction, there's always a news headline event that serves as a scapegoat for the market's weakness. Last year the scapegoat was Greece and the eurozone debt crisis. This year the void will be filled by China's slowing economy.
Underscoring the growing worries over China, Tom Orlik wrote in the March 26 issue of theWall Street Journal: "Markets fear a slowdown in China's factories. They should also be concerned about possible government instability." He went on to explain that China's real estate investment showed no growth from a year earlier and that export growth slipped to 6.8% from 14.2% in the fourth quarter of 2011.
Art Cashin On Bernanke's Secret Banker Meeting
To Keep Europe Afloat
Submitted by Tyler Durden - ZeroHedge.com
Last week Mario Monti, like a good (ex) Goldmanite, did his best to buy what Goldman is selling, namely telling anyone gullible enough to believe that the "European crisis is almost over." Funny then that we learn that just as this was happening, Ben Bernanke held a secret meeting with the entire banker caretel, in which discussed was not American jobs (seasonally adjusted or otherwise), nor $5 gas, but... helping European with its debt crisis. But, but... Mario said. In the meantime, European spreads are back to late 2011 levels.
From UBS Financial Services
Consorting With The Other Side - Fortune broke an interesting story on a private lunch that Bernanke had with some key bankers. Here's a bit:
FORTUNE -- After completing a series of public lectures in Washington, D.C. last week, Federal Reserve Chairman Ben Bernanke quietly slipped into New York City for a private luncheon on Friday with Wall Street executives.
Europe and the Law of Sticky Wages (technical) How is wage erosion going to play out
across Europe's Arc of Depression?
By Ambrose Evans-Pritchard - Telegraph.co.uk
The Federal Reserve Bank of San Francisco has an essay on its website showing that US wages in the industries in most trouble have scarcely dropped at all since the onset of the Great Recession - despite economic - even though the country has one of the most flexible labour markets in the world.
You can erode real wages through inflation, but it is nigh impossible to cut them in absolute terms. They are famously "sticky", as Keynes warned in the 1920s. Call it cultural resistance if you want, or human psychology, or common sense.
The Incredible Shrinking U.S. Government
By Jordan Weissmann - TheAtlantic.com
What do Republican presidents Reagan, Bush I, and Bush II have in common that Obama doesn't? Total government grew under those presidents after they faced recessions. By contrast, federal, state, and local government has declined by more than half a million workers in the last three years. Big government ain't what it used to be.
The graph above comes courtesy of the Economic Policy Institute. Since the recession officially ended in January 2009, the economy has bid goodbye to 584,000 government jobs (private sector employment is up by 2.8 million). That's a roughly a 2 percent drop. Though the federal workforce actually grew between 2009 and 2011, it's now shrinking at the fastest rate since the 1950s, as my colleague Derek Thompson has written. By comparison, government payrolls increased by at least a full percentage point during the thirty months after each of the last major recessions, while Republican presidents presided over the economy.
Bernanke - I'm Slowing Down the Ship
BY BRUCE KRASTING - FinancialSense.com
A full trading day after the release of the Fed minutes has brought us some reasonably significant changes in market levels. S&P –1.5%, Gold – 3.5%, Crude –1.5%. Apparently, the confirmation that it is on hold surprised the market.
I'm not surprised. Bernanke understands that upping the anti with more QE would send the price of crude through the roof. The deflationary effect on the consumer economy of another dollar increase for gas would far outweigh any positive consequences that another LSAP would have produced.
End Double Mandate to Save Fed's Independence
By Luigi Zingales - Bloomberg.com
There's one prediction that can safely be made about the decision that the Supreme Court will render on the Affordable Care Act: The final vote will almost certainly be along party lines.
The court's progressive politicization in recent years is a natural reaction to the increasingly activist role it has adopted. As justices have weighed in on questions that were traditionally the province of elected officials -- such as abortion rights -- political institutions have fought back by making ideological orthodoxy a requirement for a Supreme Court appointment.
Keiser Report: Angel Dust for Ponzi-Addicts (E271)
In this episode, Max Keiser and co-host, Stacy Herbert, discuss Ben Bernanke's 'happy dust' and Angela Merkel's 'red lines' cause ire in BRICS trade partners. In the second half of the show Max talks to Jim Rickards about a BRICS currency, gold and the fog of currency war.
Don't Catch Recovery Fever
By Peter Schiff - GoldSeek.com
Gold has been holding steady in the the $1,600-$1,800 band since early October. This could be attributed to consolidation after last summer's historic run up to $1,895, but I think this wait-and-see attitude reflects current market sentiment toward the US dollar.
In fact, the first few days of April have seen a sharp dollar rally and decline in gold. This is rooted in deflated expectations of a third round of Quantitative Easing (QE3) after the most recent Fed Open Market Committee (FOMC) meeting. Once again, the markets are responding to the headlines while losing sight of the fundamentals.
The political deadlock over national debt
By Zachary A. Goldfarb - WashingtonPost.com
Rep. Paul Ryan (R-Wis.) accused President Obama last week of setting the nation on an "unsustainable" path that would endanger "our kids and grandkids." Obama, in turn, alleged this week that Ryan and Republican front-runner Mitt Romney were trying "to impose a radical vision on our country . . . thinly veiled Social Darwinism."
It was a familiar punch-counterpunch over the problem of the nation's rocketing debt. Yet amid the rhetoric, it was easy to overlook a fundamental question:
Why can't America's leaders, at the helm of such a wealthy country, find a solution that both puts the nation on a long-term path to financial security and preserves the vast array of vital services government provides?
Are The BRICs Broken?
Goldman And Roubini Disagree On China
Submitted by Tyler Durden - ZeroHedge.com
While most of the time, it seems, investing in Emerging (or Growth) market countries is entirely focused on just that - the growth - with little thought given to the lower probability but high impact event of a growth shock. Goldman uses a variety of economic and corporate factors to compile a Growth Vulnerability Score including excess credit growth, high levels of short-term and/or external debt, and current account deficits. Comparing growth expectations to this growth shock score indicates the BRICs are now in very different places from a valuation perspective. Brazil remains 'fair' while India looks notably 'expensive' leaving China and Russia 'cheap'. It seems, in Goldman's opinion that markets are discounting large growth risks too much for China and Russia (and not enough for India). Finally, for all the Europeans, Turkey is richest of all, with a significant growth shock potential that is notably underpriced. Goldman's China-is-cheap perspective disagrees with Nouriel Roubini's well-below-consensus view of an initially soft landing leading to a hard landing for China as 2013 approaches as he notes the pain that commodity exporters feel in 2012 is only a taste of the bleeding yet to come in 2013.
The word that must not be spoken How the GSA ruined everything
By Al Kamen - WashingtonPost.com
Washington's newest dirty word is "conference."
Thanks to the clowning and magic tricks by the General Services Administration at a posh Las Vegas resort (the one that led to the resignation this week of the agency's chief and two of her top deputies and the ouster — "administrative leave" — of four officials involved in planning the ritzy event) the word may now be verboten among the agencies.
On Wednesday, for example, the Department of Homeland Security boasted of its successful "2012 National Fusion Center Training Event." A "training event" sounds like serious business. Not to be confused with a "conference," which, thanks to the GSA, now conjures up images of conga lines and taxpayer-funded decadence.
Finance as Wealth Transfer Mechanism:
An Interview with James Galbraith
Interview conducted by Philip Pilkington - NakedCapitalism.com
Philip Pilkington: Let's start with the obvious question that the book raises. Namely, why studies on inequality have, until this point, been so poor. You point out in the book that the studies that have been done have been competently researched but that they simply don't have access to the correct types of data etc. Could you talk a little about this (without getting too technical, of course) and maybe speculate a little about why this important issue has been sidetracked by the economic profession?
Jamie Galbraith: I have great respect for the many researchers around the world who have conducted income surveys over many decades, and also for those at the World Bank and elsewhere who have tried to assemble this work into useful data sets. But there are two major problems. The first is that surveys are relatively scarce, especially in poorer countries; in many countries they are available only for a few widely-scattered years. The second is that the concept – what is being measured – can vary widely from place to place and from time to time. For instance, some surveys measure the inequality of incomes; others the inequality of spending. In some cases the measures are for households; in others they are for individuals. And so forth.
Investors (and Liberals) Beware! Here Comes JOBS Act
J. Jennings Moss - Portfolio.com
As President Barack Obama prepares for a big White House ceremony Thursday to sign the Jumpstart Our Business Startups Act, the pundit class is working hard to A) issue dire warnings that unsuspecting investors are going to get ripped off, or B) berate "liberal" critics for getting all Chicken Little on JOBS.
Among those in camp A are the New York Times' Andrew Ross Sorkin and MarketWatch's Charles Jaffe. Click here to get Sorkin's take. As for Jaffe, he writes that the sector that will see the biggest rise in employment from the JOBS Act is the "investment scam business."
How the JOBS Act Turns Ordinary Joes
Into Venture Capitalists
By Ross Kenneth Urken - DailyFinance.com
On Thursday afternoon, President Obama signed the JOBS Act, and among the changes it will bring to the world of business startups is one that makes use of a rising trend: The power of crowd sourcing.
The SEC will have 270 days to interpret the basic concepts in the Jumpstart Our Business Startups Act and turn them into practical regulations, but businesses are already preparing for the tectonic shifts in the way they acquire investors.
IRS chief warns of 'confusion' on delay of tax-break moves
By Tim Devaney-The Washington Times
Just days before the national tax-filing deadline, the Internal Revenue Service chief warned Thursday that congressional delay on expiring tax-break provisions could lead to "total confusion" among working Americans.
In a wide-ranging speech at the National Press Club, IRS Commissioner Douglas Shulman also said the agency is modernizing its technology, deterring tax fraud and improving customer service.
"We've really made a lot of lasting progress at theIRS that will really serve the nation well for the years to come," he said.
U.S. to Become Tax Debtors' Prison
By Gary Gibson - WhiskeyAndGunPowder.com
If you're planning to leave the U.S. for any reason, you may soon need to make sure your taxes are all paid up.
The U.S. government is looking to plug up leaks on its tax slave ship. From CBS…
LOS ANGELES (CBS) — A bill authored by a Southland lawmaker that could potentially allow the federal government to prevent any Americans who owe back taxes from traveling outside the U.S. is one step closer to becoming law.
Senate Bill 1813 was introduced back in November by Senator Barbara Boxer (D-Los Angeles) to "reauthorize Federal-aid highway and highway safety construction programs, and for other purposes".
After clearing the Senate on a 74 – 22 vote on March 14, SB 1813 is now headed for a vote in the House of Representatives, where it's expected to encounter stiffer opposition among the GOP majority.
An Uncivil Income Tax System
By Jeff Jacoby - PatriotPost.us
Each year in the United States, an estimated 6.1 billion hours are spent complying with the federal tax code. I'm pretty sure at least half of those hours are spent by me.
With less than two weeks remaining before this year's tax returns are due, I've barely made a dent in my stack of forms, receipts, and instructions. Each year the prospect of doing my taxes looms more daunting and dismal than the year before. Each year I wonder where I'll find the time, never mind the patience, to get it done. Each year's tax ordeal seems to require more mental energy, more double-checking of math, more scouring of check registers and credit-card statements and brokerage records. And yet when I finally hit that "Send" button, I'm less certain than ever that I haven't inadvertently screwed something up. And if that's true for someone like me, whose financial arrangements are not especially abstruse, how much more miserable tax season must be for taxpayers whose circumstances are more elaborate.
The Student Loan Bubble is the Next Subprime
BY MARTIN HUTCHINSON,
Global Investing Strategist, Money Morning
Don't look now but there's another giant bubble out there. It's so big it rivals subprime.
I'm talking about the student loan bubble.
Recently, the outstanding volume of student loans passed $1 trillion. What's more bothersome is that the average individual amount owed by new college graduates has passed $25,000.
With college costs zooming upwards faster than inflation, this is rapidly becoming another subprime mortgage-like sinkhole.
Just like subprime, the problem is that people of modest means are being suckered by high-pressure salesmen into taking on too much debt.
Can This 'Online Ivy' University
Change the Face of Higher Education? Meet The Minerva Project, the chest-beating, Silicon Valley-spawned, Larry Summers-backed "E-lite" college that just might reshape the worldwide market for education.
By Jordan Weissmann - TheAtlantic.com
Traditionally, for-profit colleges have operated on the lowest rungs of America's educational ladder, catering to poor and lower-middle-class students looking for a basic, convenient degree or technical training. Aspiring Ivy Leaguers have remained far out of the industry's sites.
That is, until now.
This week, the Minerva Project, a startup online university, announced that it had received $25 million in seed financing from Benchmark Capital, a major Silicon Valley venture capital firm known for its early investments in eBay, among other successful web companies. Minerva bills itself as "the first elite American university to be launched in a century," and promises to re-envision higher education for the information age. The chairman of its advisory board: Larry Summers, the former treasury secretary and Harvard president. Among others, he's joined on the board by Bob Kerry, the former United States senator and president of The New School.
Joel Skousen on The Jeff Rense - 04 Apr 2012
Israel has postponed its attack on Iran to the spring of 2013 , there is tremendous manipulation going on in order to stop Ron Paul from being elected , the establishment republican party is as bad as the democrats says Joel Skousen , the Ron Paul movement may decide to create a third party , the only reason the gas prices are high is the embargo on Iranian oil.
Federal judge approves $25 billion mortgage pact
By Aruna Viswanatha - Telegraph.co.uk
(Reuters) - A federal judge approved a $25 billion mortgage settlement with five top U.S. banks over allegations of foreclosure abuses and misconduct in servicing home loans, according to court documents.
U.S. District Judge Rosemary Collyer signed the previously announced series of settlements on Wednesday but the approval was not made public until Thursday.
The civil allegations were brought by 49 states and the federal government. The banks did not admit to the accusations.
Foreclosure Crisis May Worsen As 2012 Goes On
By Nick Carey, Reuters - HuffingtonPost.com
GARFIELD HEIGHTS, Ohio, April 4 (Reuters) - Half a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.
But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures. "We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group with 10 offices in Ohio.
Lack of Competition Stifles Refinance Program
for Underwater Homeowners
by Cora Currier - ProPublica.com
Some homeowners are getting stuck with relatively high interest rates even after they participate in the government's program to help them refinance their mortgages. The biggest banks are not lowering rates as much as they could be — and homeowners have few options to go elsewhere.
Analysts say that the big banks are set tomake major profits off of the Home Affordable Refinancing Program, also known as HARP, which allows homeowners with loans backed by government-owned Fannie Mae and Freddie Mac to refinance if they owe more than their home is worth.
Fighting Over the American Home:
Handcuffs versus Hope and Change
Matt Stoller - NakedCapitalism.com
Over the past four years, we've watched as public officials pushed financial and legal power to the large banks – the latest episode in this saga was the mortgage settlement between state officials, Federal regulators, and the banks themselves. But there is also an undercurrent of resistance to this, resistance which could be growing stronger over time.
So what comes after the mortgage settlement? Will there be yet another multi-billion dollar transfer of wealth from taxpayers to banks in the near future? If I'm reading the tea leaves correctly, I suspect the answer is, yes. This time, it will flow through Fannie and Freddie, government entities that are responsible for trillions of dollars of mortgages. There's been a deeply bitter fight over this giant pot of money, centering around Federal Housing Finance Agency (FHFA) acting head Ed DeMarco. DeMarco controls Fannie and Freddie, and so far, he has refused to write down principal for homeowners on GSE controlled mortgages. But Treasury has been attempting to get DeMarco to change his mind, using the prospect of simply paying off Fannie and Freddie with bailout funds.
Federal Reserve Issues Statement on Rental of REOs
by CalculatedRisk
This statement makes it clear that the Fed (and probably other regulators) will allow banks to rent residential Real Estate Owned (REO) for longer periods due tomarket conditions. I expect we will see more rental programs like the pilot program recently announced by BofA.
From the Federal Reserve:
The Federal Reserve Board on Thursday released a policy statement reiterating that statutes and Federal Reserve regulations permit rental of residential properties acquired in foreclosure as part of an orderly disposition strategy. The statement also outlines supervisory expectations for residential rental activities.
Banks Fail To Maintain Foreclosed Homes
In Minority Neighborhoods: Report
by Janell Ross - HuffingtonPost.com
Six of the nation's largest banks have consistently failed to aggressively market and maintain foreclosed homes in communities of color, according to the results of a nine-month long investigationreleased Tuesday.
The investigation by the National Fair Housing Alliance, a Washington, D.C.-based nonprofit that investigates, tracks and researches housing discrimination, studied the way banks market and maintain vacant foreclosed homes in nine metro areas and found "overwhelming" and "troubling" evidence that banks consistently market and maintain foreclosed homes in the nation's predominantly white neighborhoods differently. The findings constitute a violation of federal civil rights law and show that blacks and Latinos are unfairly burdened with one of the worst aspects of the nation's housing crisis, alliance officials said.
Penney cuts 600 workers, 13 percent of HQ staff
By THE WASHINGTON TIMES
NEW YORK — Two months into J.C. Penney's transformation, its workers are starting to feel the pain.
The midpriced department store chain said Thursday that it has laid off 600 workers, or 13 percent of the staff at its headquarters in Plano, Texas, as the company looks to streamline its operations amid a major renovation of the business.
Penney also will eliminate 300 more jobs at its customer call center in Pittsburgh when it closes the center July 1.
Why Jeffrey Toobin Is Wrong
About the Supreme Court and Obamacare Instant punditry insisted that health reform was doomed.
But Justices Roberts and Kennedy's questions
actually suggest the opposite.
By Topher Spiro - TheAtlantic.com
"This was a train wreck for the Obama administration. This law looks like it's going to be struck down." And with that hyperbolic instant reaction, CNN legal analyst Jeffrey Toobin prejudiced media coverage of the Supreme Court arguments on the constitutionality of Obamacare. But reading the entire transcriptcarefully, I wondered if I was reading the same thing Toobin witnessed inside the court.
To be sure, the conservative justices posed a few hypotheticals, the gist of which were: What makes health care different? Why can the government make you buy health insurance, but not broccoli or cars? But that was to be expected. Judges often play devil's advocate to test the strength of competing positions. What would have been truly shocking is if the justices had not probed for a limiting principle, since it's become a standard line of questioning.
Wyoming's Buford, self-proclaimed smallest town in US,
sells for $900K; lone resident retiring
By Associated Press - WashingtonPost.com
BUFORD, Wyo. — Buford is a small place for sure, but so is the world.
A remote, unincorporated area along busy Interstate 80 that advertised itself as the smallest town in the United States, Buford was sold at auction for $900,000 on Thursday to an unidentified man from Vietnam.
It's owner for the last 20 years, Don Sammons, served with the U.S. Army as a radio operator in 1968-69.
Cyberattacks: America's Achilles Heel
By Brad MacDonald - theTrumpet.com
Experts fear the U.S. has already lost the war in cyberspace.
When it comes to technology and cyberspace, I'm not the sharpest tool in the shed. While I can pay bills and manage bank accounts online, play with my iPad, and buy everything from neckties to vitamins to motorbike fenders with the flick of a finger, I know very little about what's going on behind my screens, in the wires and motherboards, on the servers and networks.
There's a good chance you're as illiterate as me in this area. And while they say ignorance is bliss, in this instance it also makes us terribly vulnerable. That's because there are countless extraordinarily smart people in this world who understand the intricacies we don't—enough to burglarize our online worlds—and many of them lack the moral compass to prevent them from doing so.
FCC pulls plug on LightSquared's cellular project,
angering investor Philip Falcone
By Cecilia Kang - WashingtonPost.com
Wall Street guru Philip Falcone placed a $14 billion bet on what he thought was a sure thing. Two years ago, his company had the blessing of the Federal Communications Commission to use satellites to bring cellular service to the farthest reaches of the country, a high priority of President Obama.
Today, the FCC has put the project on ice, all but killing it. And Falcone, acknowledging for the first time that his business is near bankruptcy, on Thursday pointed an angry finger at Washington.
Your Cell Phone Makes You A Prisoner
Of A Digital World Where Virtually Anyone
Can Hack You And Track You
By Michael Snyder - EndOfTheAmericanDream.com
If you own a cell phone, you might as well kiss your privacy goodbye. Cell phone companies know more about us than most of us would ever dare to imagine. Your cell phone company is tracking everywhere that you go and it is making a record of everything that you do with your phone. Much worse, there is a good chance that your cell phone company has been selling this information to anyone that is willing to pay the price - including local law enforcement. In addition, it is an open secret that the federal government monitors and records all cell phone calls. The "private conversation" that you are having with a friend today will be kept in federal government databanks for many years to come. The truth is that by using a cell phone, you willingly make yourself a prisoner of a digital world where every move that you make and every conversation that you have is permanently recorded. But it is not just cell phone companies and government agencies that you have to worry about. As you will see at the end of this article, it is incredibly easy for any would-be stalker to hack you and track your every movement using your cell phone. In fact, many spyware programs allow hackers to listen to you through your cell phone even when your cell phone is turned off. Sadly, most cell phone users have absolutely no idea about any of this stuff.
World War 3.0
When the Internet was created, decades ago, one thing was inevitable: the war today over how (or whether) to control it, and who should have that power. Battle lines have been drawn between repressive regimes and Western democracies, corporations and customers, hackers and law enforcement. Looking toward a year-end negotiation in Dubai, where 193 nations will gather to revise a U.N. treaty concerning the Internet, Michael Joseph Gross lays out the stakes in a conflict that could split the virtual world as we know it.
By Michael Joseph GrossIllustration by Stephen Doyle - VanityFair.com
[eyeopener - be sure to readall the way to the LAST PARAGRAPH of this article!]
Andrew Wordes, American Hero
By Jeffrey Tucker - WhiskeyAndGunPowder.com
I had previously heard nothing about the tragic and remarkable case of Andrew Wordes of Roswell, Ga., who set his house on fire and blew it and himself up as police arrived to evict him from his foreclosed-upon home. It was Agora's 5 Min. Forecast that alerted me to the case, and this report remains one of not too many mentions in Google's news feed.
So I got curious about this case, read some of the background, heard an interview with Andrew and read all the tributes at his memorial service and now I realize he was like all of us living under the despotism of our time. He resisted and resisted as long as he could. But rather than finally complying, he decided that a life that is not his own is not worth living.
It is a dramatic and deeply sad story that should raise alarms about the least-talked-about cost of a state-run society: the demoralization that sets in when we do not control our own lives.
HOW THE CORN LOBBY WILL KILL YOUR OLDER CAR IT'S A SNEAK ATTACK ON YOUR PROPERTY — IF YOU OWN AN OLD CAR THAT IS. BY UPPING THE PERCENTAGE OF ETHANOL IN GAS, THE ANTI-PROPERTY PLANNERS IN GOVERNMENT ARE CAUSING THE ACCELERATED DETERIORATION OF OLDER CARS AND TRUCKS.
Written by Eric Peters - AmericanDailyHerald.com
They may not need to ban old cars outright. Instead, they'll just kill them off quietly — by poisoning them internally.
With ethanol.
Modern cars — cars built since the early '90s — can stomach the stuff. They have engines designed to deal with corrosive, ethanol-doctored "gas" — and peripheral systems (hoses, seals, o-rings, lines, etc.) made to withstand it. Being computer controlled, they can also adjust themselves to deal with ethanol-laced gas. They may not get the best mileage they're capable of delivering — because ethanol is less energy dense than gasoline — but at least they run ok.
Confusing Individual Responsibility With Statist Tyranny
"I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. In my youth I travelled much, and I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer." --Benjamin Franklin, "Management of the Poor" (1766)
In this Holy Week of Easter, one of the socialist communiqués destined for my "Know Thy Enemy" email folder was a promotion for a new "award-winning" film, "Jesus was a Commie." The film was described as "an avant-garde conversation about critical social issues," and it supports the errant pop-thesis that Jesus advocated socialism.
As absurd as that title is, liberal atheists and too many well-meaning but chronically nescient Christians regularly assert that the communist doctrines of Karl Marx equate with the teachings of Jesus Christ -- that the central message of Christianity supports socialism.
Muslim Brotherhood seeks U.S. alliance as it ascends in Egypt Vows to honor treaty with Israel
By Ben Birnbaum - The Washington Times
A lawmaker from Egypt's Muslim Brotherhoodsaid Thursday that there would be "no referendum at all" on the country's peace treaty with Israel, hours after the Islamist group's presidential candidate made his unexpected bid official.
"We respect international obligations, period,"Abdul Mawgoud Dardery, a lawmaker from theBrotherhood's Freedom and Justice Party (FJP), told The Washington Times.
Will Gold be Part of the Emerging World's Future Monetary System?
By: Julian D. W. Phillips - GoldSeek.com
In our last two articles we discussed just how the U.S. dollar came to be the central part of the world's monetary system and held onto that position when its economy and balance of payments were structurally inadequate to do so. In the second article, we described how the U.S. was flexing its muscles in taking action to stop Iran from selling its oil and receiving payments for it.
The collateral damage from this exercise embraced China, India and other nation's, who were the customers of Iran. It has become clear to these nation's that the power in the hands of the U.S. in oil matters is far too great for their future, and that they should be making plans to remove the impact of that power from off them. If they are (China in particular) to be able to make their own decisions in the future –particularly on oil and currencies—then they must develop a monetary system that is independent of the U.S.
Gold at $2175/oz, Crude oil at $85/barrel:
Morgan Stanley forecasts
NEW YORK (Commodity Online): Morgan Stanley expects gold prices to remain bullish for 2012 but sees risk to oil prices. The bank forecasts gold prices to average $1845/oz in 2012 while oil prices are expected to average $105/barrel
On oil, even though the bank expects prices to average $105/barrel in 2012, current high prices are likely to slow demand and support more production by OPEC causing "bearish inventory trends". In a bear case scenario, oil prices could fall to as low as $85/barrel
Silver may rise to $150 this year,
superb choice for investors
FLORIDA(Commodity Online): Silver will be the emergent king for precious metals investing in 2012 as a manufacturing boom will push its price upwards to $150 per ounce by the end of year, predicts Stephen M Smith, Managing Member of Smith McKenna, LLC.
Smith points out that in today's economy it is crucial to diversify investment portfolio, and commodities like silver is a superb choice.
According to Smith, who has over 20 years of experience in precious metal commodities and nobly boasts the lowest spreads in the commodities investing market, emerging dynamics are already spurring silver to experience its best quarter in a year's time.
Trump Warns 'Massive Inflation' Coming, Prepare
By NewsMax Wires - MoneyNews.com
Billionaire Donald Trump says the U.S. economy is poised for "massive inflation" and is warning investors to take steps now to protect themselves.
In the gripping CNBC interview, Trump also told investors they should not trust official government statistics.
He even questioned the "official unemployment" numbers. "It's over 20 percent. It's not 8.3 percent," Trump said.
PIMCO's Gross heavily exposed in MBS
on bet Fed keeps low rates--CNBC
(Reuters) - PIMCO's Bill Gross, who runs the world's largest bond fund, said on Wednesday his heavy exposure in agency mortgage-backed securities is more a bet on interest rates remaining at exceptionally low levels than an extension of quantitative easing.
Agency mortgage-backed securities provide higher yields and look attractive if the Federal Reserve keeps its short-term interest rate "where it is through 2014," Gross told CNBC television.
Budget War Threatens America's Survival
Greg Hunter's USA Watchdog.com
President Barak Obama gave a speech to newspaper executives about the recently passed Republican budget in the House of Representatives. It proposes to cut spending by more than $5 trillion over the next ten years. Yesterday's speech was, basically, a declaration of war against the GOP and its vision of the government's budget. The President said, "This Congressional Republican budget is something different altogether. It is a Trojan horse disguised as deficit reduction plans. It is really an attempt to impose a radical vision on our country. It is thinly veiled social Darwinism. It is antithetical to our entire history as a land of opportunity and upward mobility for everybody who is willing to work for it. A place where prosperity doesn't trickle down from the top but grows outward from the heart of middle class."
Spain back in the crosshairs of euro-zone crisis
By Howard Schneider - WashingtonPost.com
Spanish Prime Minister Mariano Rajoy warned Wednesday that his country was facing "extreme difficulty" as its cost of borrowing money on global markets jumped and doubts increased about whether the government can stick to the strict austerity program designed to bring its debt under control.
Facing recession and treacherously high unemployment, Spain is struggling to keep its debt from exceeding targets set by European officials. So far, Spain has been able to remain in the good graces of international investors, raise the money it needs to finance itself and avoid the need for an international bailout.
Destruction of Spain's Economy Duplicates Greece
by Jeff Nielson - BullionBullsCanada.com
More than two years ago I began warning readers of the most heinous acts of fraud ever perpetrated by the Western banking crime syndicate, which I dubbed "economic terrorism". These swindles involved nothing less than the destruction of entire European economies, solely so that the banksters could profit on approximately $100 trillion in bets they had placed on the debts of these economies.
The mechanics of this economic rape have been explained many times in the past. First of all the bankers duped governments and institutions all over the Western world into placing trillions of dollars (and/or euros) in bets that interest rates were about to soar higher – just before theycrashed interest rates to the lowest levels in history. This swindle is known as "interest rate swaps"
BRICS Plan for the Future
By: John Browne - GoldSeek.com
Last week, the leaders of Brazil, Russia, India, China, and South Africa met in New Delhi for their fourth annual "BRICS" summit. The meeting brought together five countries that together represent 43 percent of the world's population and 18 percent of the world's GDP. (More importantly, the group is currently attracting 53 percent of global financial capital.) When the gathering concluded on March 29, the coalition subtly issued its latest challenge to the increasingly desperate bankers and politicians of the West. They announced more definitive plans to establish a BRICS-focused development bank, to be solely funded by the BRICS countries themselves. Such an institution could allow this emerging bloc to pursue independent policies on the world stage, thereby challenging the global financial dominance of the World Bank and the International Monetary Fund (IMF), which for nearly 70 years have served as powerful monetary levers for Western interests.
The Worst of All Monetary Policies
Mises Daily: by Thorsten Polleit
I. Monetary Expansion Is Kept Going
In monetary analyses, the balance sheet of the commercial banking sector is typically kept separate from the balance sheet of the US Federal Reserve (Fed). However, combining the two balance sheets might be much more informative.
First, adding up the business volumes of commercial banks and the Fed provides a (much) better insight into the expansion of the monetary sector as a whole over time — especially so in times of the financial and economic "crisis."
YOU AIN'T SEEN NOTHING YET – PART THREE
By James Quinn - TheBurnin
The 2008 election happened in the midst of the catalyst events. A sweeping political realignment did not occur. In fact, the 2010 mid-term elections produced a result which has essentially gridlocked the political process in Washington D.C. The reunification and reenergizing of society has yet to occur. Neil Howe in his recent article pondered the question of regeneracy:
"We may like to imagine that there is a definable day and hour when America, faced by growing danger and adversity, explicitly decides to patch over its differences, band together, and build something new. But maybe what really happens is that everyone feels so numb that they let somebody in charge just go ahead and do whatever he's got to do. I'm thinking of how America felt during the bleak years of FDR's first term, or during Lincoln's assumption of vast war powers after his repeated initial defeats on the battlefield.
The Beginning of the End
By Toby Connor, GoldScents - GoldSeek.com
As convincing as this rally has been I am confident this is an ending phase and not the start a new secular bull market. Actually the bear market began last year in May but was temporarily aborted by massive Central Bank printing. Let me explain.
The last four year cycle that started in 2002 and bottomed in 2009 was the longest four year cycle in history. It was stretched to these extreme lengths by Bernanke's desperate strategy of debasing the currency to avoid the bear market that should have begun in 2006. Instead the stock market cycle stretched all the way into the spring of 2009.
Marc Faber: Brace For "Massive Wealth Destruction"
By Dominique de Kevelioc de Bailleul - ETFDailyNews.com
Reminiscent of the 1970s and the U.S. fiscal and monetary conditions which soared gold from $35 to $875 per ounce by Jan. 1980, Marc Faber, author of the Gloom Boom Doom Report warned investors of the dire implications of the world's central banks presently engaged in a global currency war.
But unlike the 1970s and the problems with the U.S. dollar, this time, in addition to the dollar, the euro, pound sterling and yen are also devaluing against everything of tangible value. And the speed at which these currencies depreciate in the coming years will most likely dwarf the decade which included the Vietnam War, Middle East conflicts, U.S. budget deficits and resulting stagflation.
The Fed's Con Appears To Be Working
But The Curtain Is Rising On The Third Act
By Lee Adler - WallStreetExaminer.com
In today's conomic news, the mainstream media focused on the disappointment surrounding the FOMC Minutes, the massaged and sanitized fairy tale about what the participants said at last month's FOMC confab. The market was shocked! SHOCKED! that most of the members saw no need for additional QE, unless things got worse. I had concluded that a couple of months ago based on the fact that every time QE speculation arose, not only did stocks rally, but so did energy and other commodity prices. The commodity vigilantes, I thought, would tie the Fed's hands. That and the fact that the conomic data was coming in relatively perky, at least in terms of the headline data, made it highly unlikely that the Fed would do any more money printing.
Gold and Silver-the Ultimate Anti-Fiat Currency
vs Fed's 'Sophisticated Swindle'
By Brian Sylvester - SilverBearCafe.com
....Richard Karn: It's interesting that if you go back to the late 18th century, the dollar has been on the gold standard roughly the same amount of time it has been on the Federal Reserve System, which presents us with a wonderful opportunity to compare the dollar's purchasing power over time.
Throughout the 19th century, with all of the booms and busts, the wars, and the incredible territorial and industrial expansions, the dollar maintained its purchasing power very well on the gold standard. Since 1914, when the U.S. went to the Federal Reserve System and especially since it has become a purely fiat currency system since closing the gold window in 1971, the dollar's purchasing power has collapsed. Under the Fed's administration, the dollar has lost well over 95% of its purchasing power.
Geithner: US Can't Let Deficit Fears Stop Investments
Thomas/Reuters - MoneyNews.com
U.S. Treasury Secretary Timothy Geithner said on Wednesday that Americans can't let fear of future deficits stymie necessary government investment in projects that are needed to spur growth.
Speaking to the Chicago Economic Club, Geithner tackled Republican opponents of the Obama administration who claim that spending is excessive.
Dennis Gartman Now Long
Of Flip Flopping In Laughing Stock Terms
Submitted by Tyler Durden - ZeroHedge.com
That the market can be stupid long enough to make anyone seem like a fool is well-known and appreciated by all (even if the final fate of centrally planned markets is even better known by all). What apparently is not known by those who are self-professed trading experts, is that flipflopping like a windsock in a hurricane, with the comic regularity of a Goldman FX advisor who shall remain nameless hell bent on skewering what little clients one has left, only makes one look like a complete and utter buffoon. And yet this is precisely what "one of the best gold traders" CNBC knows does over and over and over, to the point where not only does nobody give any credibility to the utterances from said expert's mouth, but it makes the entire venue into sheer unadulterated, laugh out loud stand up comedy (even more so than normal). And while we do not grasp how CNBC's producers consistently invite said individual to dig ever deeper holes for himself, the other perspective is quite clear: after all each contributor makes $200 per CNBC appearance. In the case of the abovementioned gold expert, we can see how this is a make or break cash infusion.
Why the Fed Will Intervene If Stocks Fall Too Far
By Jeff Cox, CNBC
Investors looking for more Federal Reserve intervention can pretty much ignore the economic data and train their sights on one area: the stock market, and how much of a drop it will take before the central bank comes to the rescue.
Though the recent market selloff is worrisome, it could take as much as a 10 percent drop or more before the Fed acts.
The Fed's IOUs Can Cripple the Economy in 2013
By Liz Peek - TheFiscalTimes.com
Does Fed Chair Ben Bernanke know what he's doing? We better hope so. Every tweet and cluck from the Open Market Committee has the power to move markets, as we saw again yesterday. Traders dumped stocks after reading the minutes from the central bank's March 13 meeting; the report hinted at a slightly better job market and doused hopes for another round of quantitative easing. (And today, stocks opened sharply lower, after investors fully digested the Fed's latest release.)
No wonder all eyes are on the Fed. With fiscal policy frozen, monetary stimulus is the only game in town. Not only is the Fed rolling the dice that near-zero interest rates will promote growth and not light the inflation fuse, the central bank is playing with ever-bigger chips.
Americans brace for next foreclosure wave
By Nick Carey
(Reuters) - Half a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.
But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.
The Second Foreclosure Tsunami Is Coming,
And Is About To Kill Any Hopes Of A "Housing Bottom"
Submitted by Tyler Durden - ZeroHedge.com
In what appears to be surprising news for some, Reuters has an article titled "Americans brace for next foreclosure wave" whose key premise is that "a painful part two of the [housing] slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures." Thank the robo settlement, where in exchange for a few wrist slaps, contract law was thoroughly trampled by America's attorney general, but far more importantly to the country's crony capitalist system, the foreclosure pipeline was once again unclogged, and whether one does or does not have a legal title on a given house, the banks are now fully in their right to foreclose on it. What this means also is that America's record shadow housing inventory, which is far greater than any fabricated number the NAR reports on a monthly basis, is about to get unleashed on buyers, shifting the supply curve much further to the right, as up to 9 million new properties slowly but surely appear on the market. And while many will no longer be able to live mortgage free, forcing them to go out and rent (and no longer be able to afford incremental iGizmos), it also means that the prevalent price of homes is about to take another major tumble, making buffoons out of all those who, once again,called for a housing bottom in early 2012. Here's the simply math: there will be no housing bottom until the 9 million excess homes clear. Period. Until then it is a buyer's market, even if said buyer is unable to obtain bank financing, as ultimately it will be the seller who is forced to monetize (or vacate if underwater) their home in a world of ever diminishing cashflows. The fear of the supply onslaught will only make the dumpage that much faster.
Report finds racial discrepancies
in upkeep of foreclosed properties
By Brady Dennis - WashingtonPost.com
Banks and lenders have maintained and marketed foreclosed properties far better in white neighborhoods than in minority neighborhoods, according to a report released Wednesdayby the National Fair Housing Alliance.
Investigators for the group evaluated more than 1,000 foreclosed properties in nine metro areas around the country — Atlanta; Baltimore; Dallas; Dayton, Ohio; Miami/Fort Lauderdale; Oakland, Calif.; Philadelphia; Phoenix; and Washington.
Probe of Insurers Gains Steam
By LIZ RAPPAPORT And LESLIE SCISM - WSJ.com
New York's top financial regulator is expanding an investigation of insurers that force homeowners policies on borrowers after turning up evidence that consumers were charged too much, according to people familiar with the situation.
Benjamin M. Lawsky, superintendent of the New York Department of Financial Services, is issuing new subpoenas and formal document requests to several insurers, demanding justification for how their rates and loss ratios were calculated, these people said.
The Impact of Changes to FHA Mortgages
ml-implode.com
Over the past several years, FHA (Federal Housing Administration) has had a very active role in the mortgage industry as it has become a major source of mortgage lending for low to middle income consumers and first time home buyers. After a temporary decrease in loan limits, it once again made its mortgage programs available to higher earning individuals with the reinstatement of the FHA loan limit to $729,750. Since that time, guidelines and fees have been updated making it a little more difficult to qualify for a FHA mortgage. The impact of current changes to FHA mortgages will not be known until its next market share numbers are released in the near future.
The Broken Promise That Can Beat Obama
By Michael Medved - Townhall.com
In the last 100 years, every U.S. president who lost his bid for a second term did so because he abandoned his principal promise to the American people. If Republicans can persuade the public that Barack Obama similarly shattered the pledge at the very core of his presidency, they will succeed in denying him the new lease on the White House he insists he deserves.
Four elected chief executives in this century failed in their reelection campaigns—and each of them flopped by landslide margins. For William Howard Taft in 1912, Herbert Hoover in 1932, Jimmy Carter in 1980, and George H.W. Bush in 1992, broken promises doomed their chances for another four-year term.
When Trucks Stop, America Stops
Trucking.org
Commercial truck traffic is vital to our nation's economic prosperity and plays a significant role in mitigating adverse economic effects during a national or regional emergency. Our economy depends on trucks to deliver ten billion tons of virtually every commodity consumed — or nearly 70 percent of all freight transported annually in the U.S. In the U.S. alone, this accounts for $671 billion worth of goods transported by truck. Add $295 billion in truck trade with Canada and $195.6 billion in truck trade with Mexico and it becomes apparent that any disruption in truck traffic will lead to rapid economic instability.
The unimpeded flow of trucks is critical to the safety and well-being of all Americans. However, it is entirely possible that well-intended public officials may instinctively halt or severely restrict truck traffic in response to an incident of national or regional significance.
Is Obama About to Gamble With the JOBS Act?
by J. Jennings Moss - Portfolio.com
Count Andrew Ross Sorkin among the haters of the Jumpstart Our Business Startups Act. In a New York Times Dealbook post published Monday night, Sorkin makes the case that the measure—which President Barack Obama will sign into law Thursday—is an invitation for investors to gamble.
Sorkin, the business news wunderkind who balances jobs as editor of Dealbook and co-host of CNBC's Squawk Box, takes an intriguing tack with his criticism of the JOBS act. He uses the lesson of Groupon (one, which the Chicago-based daily deals company teaches us in real time every day) as the biggest reason why Obama should think twice before signing the legislation.
His Royal Imperial Highness, Barack Obama II
By Ben Shapiro - Townhall.com
America's constitutional structure is built on checks and balances. The idea behind these checks and balances is simple: We want interest counteracting interest, ego counteracting ego. We don't want any one person to gain too much power -- or any one faction or any one way of thought.
Gridlock, for lack of a better word, is good.
President Barack Obama, however, has a different idea. He believes that America must be fundamentally transformed. That fundamental transformation cannot be effectuated without a fundamental transformation of the system of American government.
Pelosi predicts 6-3 victory for health law
By Stephen Dinan - WashingtonTimes.com
House Minority Leader Nancy Pelosi on Tuesday predicted the Supreme Court will uphold the health care law on a 6-3 vote, saying she and her colleagues "wrote the bill in an ironclad way."
"I'm predicting 6-3 in favor," Mrs. Pelosi told the Paley Center for Media. "We shall see. It's a lesson in civics, and I respect it."
She didn't say which six justices she thought would uphold the law.
White House in damage control
over Obama Supreme Court remarks
(Reuters) - The White House was forced on the defensive on Wednesday as it sought to explain controversial remarks President Barack Obama made earlier in the week about the Supreme Court's review of his signature healthcare reform law.
"What he did was make an unremarkable observation about 80 years of Supreme Court history," Carney told reporters during a White House briefing dominated by the topic.
Mike Bloomberg's New York: Cops in Your Hallways
By Matt Taibbi - RollingStone.com
An amazing lawsuit was filed in New York last week. It seems Mike Bloomberg's notorious "stop-and-frisk" policy – known colloquially in these parts by silently-cheering white voters as the "Let's have cops feel up any nonwhite person caught walking in the wrong neighborhood" policy – isn't even the most repressive search policy in the NYPD arsenal.
Bloomberg, that great crossover Republican, has long been celebrated by the Upper West Side bourgeoisie for his enlightened views on gay rights and the environment, but also targeted for criticism by civil rights activists because of stop-and-frisk, a program that led to a record 684,330 street searches just last year.
Sheriff of the year Patrick Sullivan jailed in Colorado Retired lawman who served on police task forces is sentenced to 30 days for drug possession and soliciting prostitutes
Reuters in Denver - Guardian.co.uk
A winner of Sheriff of the Year has been sentenced to 30 days in the US jail that bears his name after he pleaded guilty to trading drugs for sex with male prostitutes.
Retired sheriff of Arapahoe County, Colorado, Patrick Sullivan, 69, was taken into custody on Tuesday after pleading guilty in court to felony drug possession and solicitation of a prostitute, the state's attorney general's office said in a statement.
Everything You Wanted to Know
About Data Mining but Were Afraid to Ask A guide to what data mining is, how it works,
and why it's important.
By Alexander Furnas - TheAtlantic.com
Big data is everywhere we look these days. Businesses are falling all over themselves to hire 'data scientists,' privacy advocates are concerned about personal data and control, and technologists and entrepreneurs scramble to find new ways to collect, control and monetize data. We know that data is powerful and valuable. But how?
This article is an attempt to explain how data mining works and why you should care about it. Because when we think about how our data is being used, it is crucial to understand the power of this practice. Without data mining, when you give someone access to information about you, all they know is what you have told them. With data mining, they know what you have told them and can guess a great deal more. Put another way, data mining allows companies and governments to use the information you provide to reveal more than you think.
Yahoo confirms layoff of 2,000 employees
in bid to renew company Chief executive of beleaguered internet giant says Yahoo needs to return to its 'core purpose' with a trimmed down workforce
By Dominic Rushe in New York and Mark Sweney - Guardian.co.uk
Yahoo has announced a massive round of layoffs as the troubledinternet company struggles to turn around its fortunes.
In a statement, the company confirmed earlier reports that it was cutting 2,000 jobs, about 14% of its workforce. It is the sixth mass layoff in the past four years for the beleaguered company.
Why Is The Heartland Of America
Being Ripped To Shreds By Gigantic Tornadoes
That Are Becoming More Frequent And More Powerful?
By Michael Snyder -TheEconomicCollapseBlog.com
What in the world is going on in the heartland of America? Spring has barely even begun and we are seeing communities all over America being ripped to shreds by gigantic tornadoes. A lot of meteorologists claimed that the nightmarish tornado season of 2011 was an "anomaly", but 2012 is shaping up to be just as bad or even worse. These tornado outbreaks just seem to keep getting more frequent and more powerful. For example, several "supercell" tornadoes ripped across the Dallas-Fort Worth metro area on Tuesday. People all over America were absolutely horrified as they watched footage of these tornadoes toss around tractor trailers as if they were toy trucks. Personally, I have never seen a tractor trailer tossed 100 feet into the sky before. This is not normal. CBS 11 meteorologist Larry Mowry told his viewers that one of these torandoes was "as serious of a tornado we've seen in years". So why is this happening? Why is the heartland of America being ripped to shreds by gigantic tornadoes that are becoming more frequent and more powerful?
Now is not the time to be scared of Gold!
By Mike Swanson - CommodityOnline.com
I titled last month's issue of this newsletter "Mining Stocks May Become the Big Play for the Second Half of 2012." I wasn't saying that it was time to buy them, but that I thought that when the correction they are in, which has been going on now since way back in September, came to an end they would likely put on a big performance through the rest of this year.
Now the correction hasn't ended yet and they have fallen a bit more this past month. That fact has caused many people to throw in the towel on them and I've even seen articles and blog posts on the Internet declaring that gold is now in a bear market. For instance just a few weeks ago frequent CNBC talking head Dennis Gartman announced that he was out of gold after pounding the table on it in January.
Five Years After Crisis, No Normal Recovery
By Carmen M. Reinhart and Kenneth S. Rogoff - Bloomberg.com
With the U.S. economy yielding firmer data, some researchers are beginning to argue that recoveries from financial crises might not be as different from the aftermath of conventional recessions as our analysis suggests. Their case is unconvincing.
The point that all recoveries are the same -- whether preceded by a financial crisis or not -- is argued in a recent Federal Reserve working paper by Greg Howard, Robert Martin and Beth Anne Wilson. It was also discussed in a recent article in the Wall Street Journal.
Market pendulum swings back to fear Will rally fall to the fear factor? At the end of a good first quarter, economically sensitive stocks started to fade. It could be a scary time to invest, but there's a sector that's a big exception.
By Jim Jubak - Money.MSN.com
A funny thing happened on the way to the end of the first quarter.
After leading the stock market for most of the quarter, cyclical stocks started to lag the Standard & Poor's 500 Stock Index ($INX -0.40%).
Is this a sign of what we can expect in the second quarter, as worries about economic growth take the steam out of profits for stocks that follow the economic cycle? I'd say so. I think we're seeing the first signs that the pendulum, which swung to optimism and drove this rally, is swinging in the other direction.
Exactly Why This Time IS Different
And the Fed Will Be Powerless to Stop What's Coming
By Graham Summers - GoldSeek.com
Over the last two years, I've been caught into believing a Crash was coming several times. In some ways I was right: we got sizable corrections of 15+%. But we never got the REAL CRASH I thought we would because the Fed stepped in.
So what makes this time different?
Several items:
1) The Crisis coming from Europe will be far, far larger in scope than anything the Fed has dealt with before.
2) The Fed is now politically toxic and cannot engage in aggressive monetary policy without experiencing severe political backlash (this isan election year).
3) The Fed's resources are spent to the point that the only thing the Fedcould do would be to announce an ENORMOUS monetary program which would cause a Crisis in of itself.
'Massive Wealth Destruction' Is About to Hit Investors: Faber
By: Jeff Cox - CNBC.com
Runaway government debts have triggered uncontrolled money printing that in turn will lead to inflation that will decimate portfolios, according to the latest forecast from "Dr. Doom" Marc Faber.
Investors, particularly those in the "well-to-do" category, could lose about half their total wealth in the next few years as the consequences pile up from global government debt problems, Faber, the author of the Gloom Boom & Doom Report, said on CNBC.
Keiser Report: Debtflation (E270)
In this episode, Max Keiser and co-host, Stacy Herbert, discuss allegations of Rupert Murdoch sabotaging competitors, America buying 61 percent of its own debt and Germany lauching a strategy to counter its own largesse. In the second half of the show Max talks to Reggie Middleton about JP Morgan's muni bond bucket shop and the US Federal Reserve buying up Treasury debt.
Wolfson gurus see euro break-up as dangerous but liberating A disorderly break-up of the euro would set off a cataclysmic chain-reaction and a collapse of Europe's banking system, pushing the world into full-blown depression.
By Ambrose Evans-Pritchard - Telegraph.co.uk
That is the shared nightmare of those shortlisted for the £250,000 Wolfson Economics Prize - the richest economic award after the Nobel Prize - on how to "manage" a full or partial disintegration of monetary union. They agree on little else.
"The consequences of a completely unplanned 'Exit' are likely to be catastrophic," said Neil Record from Record Currency Management, one of the five qualifiers.
Spain Heading for Highest Debt Level in 22 Years Spain Debt-to-GDP to Hit 79.8% in 2012: Government
By: Reuters - CNBC.com
Spain's public debt will jump to its highest level since at least 1990 this year as the economy sinks into recession, the government said in its budget on Tuesday, worrying investors who sold Spanish bonds.
Spain is under intense pressure from the European Union and investors to drastically cut its deficit and prove it will be able to repay its debt without asking for outside help.
Analysts say it will struggle to meet this year's deficit target despite new budget cuts.
The Buck Stops Here: A BRIC Wall
BY JOHN BUTLER - FinancialSense.com
Already on the defensive due to a persistent failure to achieve its stated policy aims, the US Fed was subject to much fresh criticism over the past week, including from the BRIC nations, collectively the largest foreign holders of US dollar reserves. While the dollar remains the world's pre-eminent reserve currency, there is growing recognition everywhere, except inside the Fed itself, that a choice will soon have to be made: Either the Fed must move to implement a credible, rules-based monetary policy, focused primarily on preserving the purchasing power of the dollar, or the dollar will lose reserve currency status, initiating a vicious spiral of dollar and US Treasury market weakness, which would quickly spill over into the financial system generally. Were that to happen, the current debate about how to reduce the US budget deficit would be promptly settled, as it would become impossible for the US to finance public sector deficits in the first place. Does the Fed, or the government, see the danger? Regardless, investors need not only to see it, but to understand it and to act accordingly. Time may be shorter than I previously thought.
EU 'surprised' by Portugal's unemployment rate
BY VALENTINA POP - EUObserver.com
BRUSSELS - The EU commission on Tuesday (3 April) praised Portugal for its austerity measures and said unemployment benefits had to be further cut even though the percentage of jobless people was "surprisingly" higher than expected.
"The budgetary adjustment is currently on track and it is likely for the Eurogroup to say yes to the fourth disbursement (of bail-out money)," said Peter Weiss, an EU commission official part of the 'troika' of international lenders overseeing the reform process in Lisbon.
Eurozone unemployment hits new record
BY VALENTINA POP - EUObserver.com
BRUSSELS - Eurozone unemployment reached 10.8 percent in February, the highest level since the currency was introduced in 1999, according to the latest Eurostat data.
The statistics office estimated that more than 17.1 million men and women were out of work in February in the 17 states of the eurozone, 162,000 more than a month earlier and 1.48 million more than in 2011. The highest increases were registered in Greece (14.3% to 21.0% between December 2010 and December 2011), Spain (20.6% to 23.6%) and Cyprus (6.7% to 9.7%).
IMF chief wants 'more firepower' to fight crises
By Tom Raum - AP - WashingtonTimes.com
WASHINGTON (AP) — The managing director of the International Monetary Fund called on the world's developed nations on Tuesday to "increase our firepower" to better confront global financial strains such as those now in play inGreece and several other eurozone nations.
"We certainly need more resources," IMF chiefChristine Legarde told the annual meeting of the Associated Press, but she did not specify how much more was needed. Ms. Lagarde said theIMF would address that question at its spring meeting in two weeks.
An 11-year-old's solution to the euro crisis
by Suzy Khimm - WashingtonPost.com
The Wolfson Economics Prize will be awarded to the best contingency plan for the breakup of the euro zone. All five finalists, which were announced Tuesday, are expert economists and financial analysts. But the judges also awarded a special mention to the youngest entrant, an 11-year-old boy from the Netherlands (he was 10 when he submitted the entry). Here's Jurre Hermans's plan for Greece to make an orderly exit from the euro zone, which he illustrated as well:
My name is Jurre Hermans. I am 10 years old and live in the Netherlands. I am quite worried about the eurocrisis and look at the TV news daily. The eurocrisis is a big problem. I think about solutions....Greece should leave the Euro. How do you do that? All Greek people should bring their Euro to the bank. They put it in an exchange machine (see left on my picture). You see, the Greek guy does not look happy!! The Greek man gets back Greek Drachme from the bank, their old currency. The Bank gives all these euro's to the Greek Government (see topleft on my picture). All these euros together form a pancake or a pizza (see on top in the picture). Now the Greek government can start to pay back all their debts, everyone who has a debt gets a slice of the pizza. You see that all these euro's in the pizza's go the companies and banks who have given loans in greece (see right in my picture).
Why People Hate the Banks
By JOE NOCERA - NYTimes.com
A few months ago, I was standing in a crowded elevator when Jamie Dimon, the chief executive of JPMorgan Chase, stepped in. When he saw me, he said in a voice loud enough for everyone to hear: "Why does The New York Times hate the banks?"
It's not The New York Times, Mr. Dimon. It really isn't. It's the country that hates the banks these days. If you want to understand why, I would direct your attention to the bible of your industry, The American Banker. On Monday, it published the third part in its depressing — and infuriating — series on credit card debt collection practices.
The $1.3 billion bond deal haunting Goldman What went into the 2006 Fremont Home Loan Trust from Goldman Sachs that has the SEC so bothered?
By Stephen Gandel - Fortune.CNN.com
FORTUNE -- The Securities and Exchange Commission is likely to bring charges soon against Goldman Sachs (GS) for a 2006 mortgage investment deal. The agency hasn't said which one yet, but Fortune has learned there's a good chance the SEC's case will focus on Fremont Home Loan Trust 2006-E, a bundle of more than 5,000 mortgages that has cost investors, including mortgage guarantor Freddie Mac and by extension U.S. taxpayers, an estimated $545 million.
Break Up the Big Banks? Why It Could Actually Happen
By: Jeff Cox - CNBC.com
Big banks have helped lead this year's stock market rally, but the institutions themselves are about to undergo an onslaught from politicians and regulators who want the companies broken up.
One prominent analyst has gone as far as telling investors they should brace for the notion that three of Wall Street's biggest names — Bank of America Merrill Lynch — may cease to exist in their present forms.
The Irrelevance of Bank Reserves
By John Carney - CNBC.com
If you're feeling a bit lost when it comes to all this talk about bank lending not being "reserve constrained," you aren't alone.
Fortunately, the Economist published a good piece explaining it back in 2009.
For the Federal Reserve, as with most central banks, reserves ordinarily serve only one purpose: to help it establish a target interest rate. In ordinary times, some banks have more reserves than they need and lend them to those that have too little. The rate on those interbank loans is called the fed funds rate. If the Fed wants a higher fed funds rate, it drains reserves. If it wants a lower one, it adds reserves. The quantity of reserves, per se, is irrelevant to the Fed. It's the interest rate that affects spending and it's spending that drives both the demand for credit and, ultimately, inflation.
Fed Signals No Need for More Easing Unless Growth Falters
By Joshua Zumbrun and Jeff Kearns - Bloomberg.com
The Federal Reserve is holding off on increasing monetary accommodation unless the U.S. economic expansion falters or prices rise at a rate slower than its 2 percent target.
"A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum or if inflation seemed likely to remain below" 2 percent, according to minutes of their March 13 meeting released today in Washington. That contrasts with the assessment at the FOMC's January meeting in which some Fed officials saw current conditions warranting additional action "before long."
Fed's Williams Says 'Strong' Stimulus Needed for Recovery
By Aki Ito and Caroline Salas Gage - Bloomberg.com
Federal Reserve Bank of San Francisco President John Williams said the central bank must continue to act "vigorously" to boost the economy and sustain labor market gains.
"We are far below maximum employment and are likely to remain there for some time," Williams said today in San Diego. "Under these circumstances, it's essential that we keep strong monetary stimulus in place. The recovery has been sluggish."
The policy-setting Federal Open Market Committee on March 13 maintained its pledge to keep interest rates low through at least late 2014, noting improvements in employment while also saying "significant downside risks" remain. Still, policy makers saw no need to roll out new easing measures unless growth faltered, minutes of last month's meeting showed today.
Fed again adopts wait-and-see approach
By Zachary A. Goldfarb - WashingtonPost.com
The Federal Reserve appears unlikely to launch another round of economic stimulus to try to generate additional growth and quicken the decline in unemployment, according to minutes of the Fed's March meeting released Tuesday.
At the meeting, Fed officials observed numerous signs of a strengthening economic recovery but also expressed the view that unemployment, now at 8.3 percent, was likely to come down only gradually over the next few years.
The Fed's Con Appears To Be Working
But The Curtain Is Rising On The Third Act
By Lee Adler - WallStreetExaminer.com
In today's economic news, the mainstream media focused on the disappointment surrounding the FOMC Minutes, the massaged and sanitized fairy tale about what the participants said at last month's FOMC confab. The market was shocked! SHOCKED! that most of the members saw no need for additional QE, unless things got worse. I had concluded that a couple of months ago based on the fact that every time QE speculation arose, not only did stocks rally, but so did energy and other commodity prices. The commodity vigilantes, I thought, would tie the Fed's hands. That and the fact that the conomic data was coming in relatively perky, at least in terms of the headline data, made it highly unlikely that the Fed would do any more money printing.
None so Blind
By Scott Silva - GoldSeek.com
It seems the administration can never see the realities that stifle economic growth-- the hard realities right before their eyes that most of us see and must deal with every day. The terrible trio at the controls of the US economic engine is driving us not into a ditch, but over a cliff. The Fed Chairman is flooding the economy with too much liquidity. The Treasury Secretary believes the best way to recovery is through more government spending, taxing the rich and forcing broader redistribution of the nation's wealth. The president's vision for prosperity is government control of production and economic equality. Our elected leaders pander and deceive in full-time re-election campaign mode, with Newspeak and misdirection to mask the realities of high unemployment, high consumer prices, falling wages and slow economic growth.
Regulators Move Closer to Oversight of Nonbanks
By ANNIE LOWREY - NYTimes.com
WASHINGTON — The Financial Stability Oversight Council, the country's top financial regulatory body, moved closer on Tuesday to increasing its oversight of nonbank financial institutions, like hedge funds, private equity firms and insurers.
The 10-member council, headed by the Treasury secretary, Timothy F. Geithner, voted unanimously to adopt a rule that will designate some of those firms as "systemically important financial institutions," and put them under stronger regulatory supervision.
Why Are the Fed and SEC Keeping Wall Street's Secrets?
By William D. Cohan - Bloomberg.com
Getting what should be public information about major Wall Street firms can be maddeningly difficult.
Bloomberg News discovered this in its ultimately successful effort to get information on the $1.2 trillion in "secret loans" the Fed doled out during the financial crisis. And I've had no small experience of it myself.
As I started each of my three books -- about Lazard Freres, Bear Stearns and Goldman Sachs Group Inc. (GS) -- I submitted Freedom of Information Act requests to the appropriate government agencies (the Securities Exchange Commission, the State Department and the Federal Reserve) to obtain whatever documents, memos and e-mails they had about these companies and their senior executives.
YOU AIN'T SEEN NOTHING YET – PART TWO
By James Quinn - TheBurningPlatform.com
....Anyone who hasn't sensed a mood change in this country since the 2008 financial meltdown is either ignorant or in denial. Millions of Americans fall into one of these categories, but many people realize something has changed – and not for the better. The sense of pure financial panic that existed during September and October of 2008 had not been seen since the dark days of 1929. Our leaders used the initial terror and fear to ram through TARP and stimulus packages that rewarded the perpetrators of the financial collapse rather than helping the middle class who lost 8 million jobs, destroyed by Wall Street criminality. The stock market plunged by 57% from its 2007 high by March 2009. What has happened since September 2008 has set the stage for the next downward leg in this Crisis. The rich and powerful have pulled out all the stops and saved themselves at the expense of the many. Despite overwhelming proof of unabashed mortgage fraud, rating agency bribery, document forgery on a grand scale and insider trading based on non-public information, the brazen audacity of Wall Street oligarchs is reminiscent of the late stages of the Roman Empire.
Is The Wimpy Recovery Morphing Into Recession?
By Rana Foroohar, TIME
We've just begun coming to grips with the wimpy recovery. Are we actually in for another recession? That was the implication of a couple of economic reports I read this week, including one by ITG Investment Research, which tracked how the pace of this recovery (which was never great to begin with) has by some measures been slowing, particularly among middle-income consumers and industries producing for overseas markets. (Europe is definitely in a double dip, and many emerging markets are slowing too, as I've written about many times.)
One of the most interesting snippets from the report: While there are fewer goods on sale in American malls and retail shops than there were last year around this time, what is on sale is being discounted at much steeper rates — and not just at dollar stores but at outlets catering to middle- as well as lower-income people.
Income Inequality Is Killing the Economy,
Obama Says—Is He Wrong? The president wants to turn inequality into both a campaign banner and a grand unifying theory of the recovery. But not all economists agree with him.
By Derek Thompson - TheAtlantic.com
"What drags down our entire economy is when there is an ultra-wide chasm between the ultra-wealthy and everyone else," President Obama said in a speech today, citing evidence that income inequality hurts economic growth.
So, is he right?
Mortgage Rates Significantly Higher After Fed Meeting Minutes
BY MATTHEW GRAHAM - MortgageNewsDaily.com
Mortgages Rates got crushed today, relatively speaking. It's ironic that we noted yesterday's rates as getting close to 3/13's levels because today's rates are turning out to be closer to 3/14's significantly worse levels. While the recently prevailing Conventional 30yr Fixed Best Execution Rate of 4.0% remains intact, costs to obtain that rate will be immensely higher today vs yesterday. More than a few lenders will have issues hitting that 4.0% mark with a "no closing cost" loan.
Home Prices Seen Dropping 10% in U.S.
on Foreclosures: Mortgages
By Kathleen M. Howley - Bloomberg.com
As many as 1.25 million of America's least cared for homes are headed for auction after a year-long probe into foreclosure practices kept them off the market.
Sales of repossessed properties probably will rise 25 percent this year from 1 million in 2011, according to Moody's Analytics Inc. Prices for the homes could drop as much as 10 percent because they deteriorated as they were held in reserve during investigations by state officials resolved in February, according to RealtyTrac Inc. That month, 43 percent of foreclosures were delinquent for two or more years, from a 21 percent share in 2010, according to Lender Processing Services Inc. in Jacksonville, Florida.
US Standard of Living Has Fallen More Than 50%
By Jeff Nielson, TheStreet
NEW YORK (Bullion Bulls Canada) -- In writing about the relentless collapse of Western economies, I frequently point to "40 years of plummeting wages" for Western workers, in real dollars. However, where I have been remiss is in quantifying the magnitude of this collapse in Western wages.
On several occasions, I have glibly referred to how it now takes two spouses working to equal the wages of a one-income family of 40 years ago. Unfortunately, that is now an understatement. In fact, Western wages have plummeted so low that a two-income family is now (on average) 15% poorer than a one-income family of 40 years ago.
Democrats Resort to Magical Thinking on Obamacare
By Ramesh Ponnuru - Bloomberg.com
In the span of one week, Democrats went from dismissing the possibility that the Supreme Court would strike down the 2010 law mandating individuals to buy health insurance to consoling themselves that any such action would have a silver lining.
James Carville says it would help the Democrats in the election. Washington Post columnist Eugene Robinson writes that it would make single payer -- a government health system as in the U.K. and Canada -- "inevitable." Other liberals, and even the occasional right-of-center analyst, have echoed that point: The conservative legal challenge to President Barack Obama's health-care overhaul could prove self-defeating.
Obama Says Court Overturning Health Law Would Be 'Activism'
By Roger Runningen and Hans Nichols - Bloomberg.com
President Barack Obama, saying he's confident the U.S. Supreme Court (1000L) will uphold the 2010 health- care law, said the "burden is on those who would overturn" a law that requires Americans to have insurance.
"The Supreme Court is the final say on our Constitution and our laws, and all of us have to respect it," Obama said at an Associated Press luncheon in Washington. "It's precisely because of that extraordinary power that the court has traditionally exercised significant restraint and deference to our duly elected legislature, our Congress."
Obama flunks constitutional law President attacks Supreme Court
in advance of Obamacare ruling
Editorial - The Washington Times
For someone who once taught classes at a law school, President Obama doesn't seem to know much about the powers of the Supreme Court.
At a press conference Monday, Mr. Obama said he did not think the high court would rule that forcing Americans to buy health insurance was unconstitutional. "Ultimately, I am confident that the Supreme Court will not take what would be an unprecedented, extraordinary step of overturning a law that was passed by a strong majority of a democratically elected Congress," he said.
How to fix health care
By The Washington Times
The individual mandate in Obamacare would not be necessary if the act did not require coverage of pre-existing conditions without any additional premium costs.
Insurance coverage of any kind is based on the statistical probability of a covered event happening within a certain time A person pays a lower premium for life insurance if they are less likely to die in the near future (i.e., life insurance for a child costs less than life insurance for a senior). Auto insurance costs less for people who have a good driving record and who live in areas that are less likely to have traffic accidents (i.e. rural areas). Most auto insurance companies also have a premium surcharge if a person has an "at fault" accident.
Arizona sheriff rejects court monitor;
Justice Department threatens to sue
By Sari Horwitz - WashingtonPost.com
The standoff between the federal government and a high-profile Arizona sheriff accused of discriminating against Hispanics escalated Tuesday when settlement negotiations fell through and the Justice Department threatened to sue the sheriff.
Justice officials have accused Maricopa County Sheriff Joe Arpaio's department of illegally detaining Hispanic residents and denying them critical services in jail. A day before settlement negotiations were to begin, Arpaio refused to agree to a court-appointed monitor to oversee changes in his department, one of the Justice Department's requirements.
SHERIFF JOE EXPANDS OBAMA PROBE TO HILLARY SUPPORTERS Obama campaign, DNC accused of voter fraud in 2008
By Jerome R. Corsi - WND.com
PHOENIX – Based on interviews WND conducted with insiders in Hillary Clinton's 2008 campaign, Sheriff Joe Arpaio has decided to expand the scope of his law enforcement investigation into President Obama's eligibility to include evidence and affidavits documenting alleged criminal activity by the Obama campaign in the 2008 Democratic Party primary race.
Hollywood film producer Bettina Viviano and Hollywood-based digital photographer Michele Thomas have given Arpaio's investigators the names of dozens of Hillary Clinton supporters willing to come forward with evidence and affidavits. Among their claims is that the Clintons were the first to charge Obama is not a natural born citizen as required by Article 2, Section 1 of the Constitution and that his birth certificate is a forgery.
More papers now charging readers for online stories
By Ryan Nakashima - AP - WashingtonTimes.com
LOS ANGELES — Newspapers are returning to a business strategy that served them well in the heyday of street-corner newsboys shouting the front-page news - enticing people with a little free online content before asking them to pay up.
After years of offering news for free, a growing number of newspapers have launched so-called metered paywalls, which give readers a few free stories online before requiring them to sign up for a digital subscription. About 300 newspapers have adopted such plans, which usually give subscribers some mix of Web, smartphone and tablet computer access.
The Rise of the Artifical-Intelligence Economy
By Adam Ozimek - TheAtlantic.com
As a child I used to read my grandfather's Popular Science and Popular Mechanics magazines. The constant promise and inevitable disappointment of amazing technologies that mostly never materialized (a problem likely exacerbated by my focus on the amazing and outlandish ones) made me skeptical of futurist predictions. It is somewhat strange then, that I now commonly find myself a proponent of futurist visions equally as grand as those that once made me a cynic. But I'm not alone in seeing the near future as a quickly changing technological landscape. In their recent book Race Against The Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy, MIT's Erik Brynjolfsson and Eric McAfee offer a similarly sweeping view of how technology is, and will be, shaping our future.
Asia's Oil Majors Look to North America for Oil and Gas
By James Burgess - OilPrice.com
The price difference between North American natural gas and that in Asia has attracted many Asian firms, such as PetroChina Co., Mitsubishi Corp., and Cnooc Ltd., to invest in the Canadian oil and gas industry. So far this year, over $8.7 billion worth of deals have been announced in Canada, the most since 2009 when the total reached $47 billion.
The price differential was partly what attracted Petroliam Nasional Bhd (Petronas), the Malaysian state-owned oil company, to Canada, where it is now in the process of negotiating an acquisition exceeding $5 billion; its largest ever deal.
U.S. warns North Korea not to launch missile
By Kristina Wong-The Washington Times
The Pentagon on Tuesday warned North Koreanot to go through with its planned satellite launch, which several nations suspect is a cover for an illegal ballistic missile test.
"North Korea should not violate their international obligations," Pentagon press secretary George Little told reporters.
North Korea has said the launch would take place on or around April 15 to mark the 100th anniversary of the birth of the country's founder, Kim Il-sung.
Gold and Silver still extremely bullish for 2012, 2013
WASHINGTON (Commodity Online): Morgan Stanley still remains extremely upbeat on gold and silver for this year and next.
In a weekly commodities report, analysts note that gold hit a two-week high last week after a hint from Federal Reserve Chairman Ben Bernanke that unconventional monetary measures may still be undertaken, before the metal succumbed to a higher U.S. dollar and quarter-end selling.
Gold is Still Getting Fixed
By Gary Tanashian - GoldSeek.com
So there was a panicky spike in gold last summer as the herd sought refuge from the euro, which was falling apart as some of its components had a really hard time peddling their legacy of debt.
This was going to be the big one as gold was finally going to blast off, better get aboard! You are a gold bug now and you are safe! No, unfortunately the new players were just being introduced to the overdone euphoria of the upside thrills, only to later be introduced to the bile of the inevitable downward reactions.
Dressing down the Fed:
Jim Grant on the Gold Standard and Fed manipulation Some swingeing criticisms of Central Bank policies. Jim Grant talking on the Gold Standard and manipulation among others - and also expressing confidence in the gold price and gold and silver stocks.
Author: Lawrence Williams - Mineweb.com
One of gold's most respected mainstream commentators, Jim Grant of the highly regarded Grants Interest Rate Observer, appears not only to have come out with some overt criticism of the New York Fed's position on a Gold Standard, but according to GATA may have also joined the ranks of those who accept that the gold price is being manipulated and suppressed - although he didn't mention gold manipulation specifically in both an interview with CNBC and a presentation to the New York Fed itself, but spoke more in generalities about Fed manipulation in a number of less-defined market sectors. In his Fed address Grant said "What passes for sound doctrine in 21st-century central banking-so-called financial repression, interest-rate manipulation, stock-price levitation and money printing under the frosted-glass term "quantitative easing"...
US Mint Gold and Silver coin sales
rise in March but down Y-o-Y
NEW YORK (Commodity Online): United States Mint sales of gold and silver bullion coins rose from February to March but were down compared to the same month a year ago.
The Mint sold 62,500 ounces of gold coins in March, up from 21,000 in February although down from 127,000 in January, considered a seasonally strong month due to increased demand for a new year's mintage. The total for March was down from 73,500 ounces in the same period of 2011.
The Decline And Fall Of The USD
Julian D.W. Phillips - SilverBearCafe.com
In our previous article we looked at whether the U.S. Dollar was headed for a major fall or not. We demonstrated how the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be disseminated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise of destroying "weapons of Mass Destruction" as it appears on the verge of doing in Iran. It is no coincidence that Iran has long since ceased using the dollar to price its oil. It has also eliminated the U.S. dollar from its reserves. But of greater importance to the emerging world has been the use of the Belgian-based SWIFT system of international settlements. Not only has the move stopped the sale of Iranian oil, but it has also interfered with an important source of oil to the emerging world.
The case against killing the penny
Posted by Sarah Kliff - WashingtonPost.com
It's hard to think of a recent Canadian policy that's drawn as much praise as our Northern neighbor's decision last week to eliminate the penny.
"Canada wins race to eliminate the terrible penny," the Atlantic Wire proclaimed. The Washington Examiner declared the policy "a worthwhile Canadian initiative," referencing Jonathan Chait's much-belovedboring headline writing contest.
The economics, after-all, seemed pretty clear cut: It makes no sense to keep circulating an one-cent coin that costs 1.5-cents to produce. But over at The New Republic, Eric Wen flagssome research suggesting that there could be an economic downside to eliminating the penny, as it could have a disproportionately negative impact on the poor who tend to be more reliant on cash transactions.
Visible on the horizon: Inflation
Bill Fleckenstein - SilverBearCafe.com
People are beginning to realize that the inflation joke is on them, with rising prices everywhere and deflation nowhere in sight. Plus: Words of wisdom on gold.
I have owned gold and gold-related investments aggressively since 2001 for one main reason: the mismanagement at the U.S. Federal Reserve, with its unplanned and unarticulated determination to debase our currency and promote inflation.
The Next "Lehman Moment" Is Coming Fast
BY SHAH GILANI, Capital Waves Strategist, Money Morning
It seems that my latest edition of Insights & Indictments was warmly received by the bullish crowd, many of whom reached out to me to thank me for my optimism.
I'm sorry to burst your bubbles, but I am not a raging bull (but thank you for asking).
In fact, I'm still bearish.
There's a big difference between being bullish and playing all stocks (and other asset classes) from the long (that means "buy") side... and judiciously buying select momentum stocks with fat dividend yields, which is what I was recommending.
How Is This Recession Different From All Other Recessions? It's not. Men, minorities, young people, and the under-educated suffered the most in the Great Recession, just like they did in every downturn for the past 30 years.
By Jordan Weissmann - TheAtlantic.com
Perhaps it's finally time to retire the phrase "mancession."
During the past few years, that grisly portmanteau has become a popular shorthand for the way men seemed to suffer a special degree of misfortune during the Great Recession. Male-dominated industries, particularly construction, had been at the heart of the housing bust and the ensuing downturn, and their job prospects diminished more as a result. Hence, a new turn of phrase was born.
Fade the Private Sector - Big Government Is Here for Good
BY DAVID KOTOK - FinancialSense.com
Dear reader: My friend Joe B. has experienced some of the world's exigencies. He thinks about them in the context of being a former Bostonian, and he said a few things at our last lunch together. His words caused me to reflect on the teaching of an earlier Bostonian. I originally sought a quote from the famous son, but as readers will see, I ended up with the father. We will dedicate this commentary to Joe B., who set me on the course for today's comments.
"The mind, once expanded to the dimensions of larger ideas, never returns to its original size." Oliver Wendell Holmes, Sr.
Understanding The Slave Mentality
By Brandon Smith - Alt-Market.com
In the initial stages of nearly every recorded tyranny, the saucer eyed dumbstruck masses exhibit astonishing and masterful skill when denying reality. The facts behind their dire circumstances and of their antagonistic government become a source of cynical psychological gameplay rather than a source of legitimate concern. Their desperate need to maintain their normalcy bias creates a memory and observation vacuum in which all that runs counter to their false assumptions and preconceptions disappears forever. It is as if they truly cannot see the color of the sky, or the boot on their face. The concrete world of truth becomes a dream, an illusion that can be heeded or completely ignored depending on one's mood. For them, life is a constant struggle of dissociation, where the tangible is NOT welcome…
45 Signs That America Will Soon Be
A Nation With A Very Tiny Elite
And The Rest Of Us Will Be Poor
By Michael Snyder - EndOfTheAmericanDream.com
The middle class is being systematically wiped out of existence in the United States today. America is a nation with a very tiny elite that is rapidly becoming increasingly wealthy while everyone else is becoming poorer. So why is this happening? Well, it is actually very simple. Our institutions are designed to concentrate wealth in the hands of a very limited number of people. Throughout human history, almost all societies that have had a big centralized government have also had a very high concentration of wealth in the hands of the elite. Throughout human history, almost all societies that have allowed big business or big corporations to dominate the economy have also had a very high concentration of wealth in the hands of the elite. Well, the United States has allowed both big government and big corporations to grow wildly out of control. Those were huge mistakes. Our founding fathers attempted to establish a nation where the federal government would be greatly limited and where corporations would be greatly restricted. Unfortunately, we have turned our backs on those principles and now we are paying the price.
Who Captured the Fed?
JESSE'S CAFÉ AMÉRICAIN
Future generations will look back and ask themselves, 'How could they not see what was happening? Were they blind?'
The Fed is not the only problem here, but a key enabler. White collar crimes and fraud flourished amongst the robber barons even in the days of the gold standard. It just was not as convenient, as easy, to defraud the people en masse through the debasement of the currency.
The Fed has merely proven to be as vulnerable as the regulators and the Congress to the power of the monied interests. If the political campaign process had not been corrupted by money, if the fairness doctrine in the media and Glass-Steagall in banking had not been overturned by the mindless impulse to cast aside the best of the laws, many of the problems we have today would not be so great.
Assailing the Supreme Court The legal left echoes Newt Gingrich on judicial power.
WSJ.com
After last week's Supreme Court argument on ObamaCare, the political left seems to be suffering a nervous breakdown. Only a week ago, the liberal consensus was that the federal mandate to buy insurance couldn't possibly be overturned. Now as panic sets in, the left has taken to mau-mauing the Justices by saying that if they overturn the mandate they'll be acting like political partisans. The High Court's very "legitimacy" will be in question, as one editorial put it—a view repeated across the liberal commentariat.
New spotlight on state responses to health-care law
By N.C. Aizenman - WashingtonPost.com
Variations in the way states have moved to implement the 2010 federal health-care law have taken on greater significance after last week's Supreme Court hearings, whose tone heightened speculation that the statute would be overturned.
With the exception of Arizona, all of the states and the District of Columbia have amended their health insurance rules or practices to comply with mandates imposed by the law. Those mandates include the elimination of lifetime coverage limits and the requirement that many insurers allow parents to put adult children younger than 26 on their plans.
Obama 'confident' Supreme Court will uphold health care law
By Susan Crabtree - The Washington Times
In his first public remarks on the case since the Supreme Court heard arguments last week on the fate of his sweeping health care overhaul, President Obama on Monday warned the high court not to overturn the law and repeatedly said he is "confident" it won't.
"I continue to be confident that the Supreme Court of the United States will uphold the law," he said during a joint press conference following meetings with Mexican President Felipe Calderon and Canadian Prime Minister Stephen Harper.
Supreme Court upholds strip searches for any offense By a 5-4 vote, the court ruled against a NJ man
who complained of civil rights violations
By Mark Sherman, Associated Press - PoliceOne.com
WASHINGTON — The Supreme Court ruled Monday that jailers may subject people arrested for minor offenses to invasive strip searches, siding with security needs over privacy rights.
By a 5-4 vote, the court ruled against a New Jersey man who complained that strip searches in two county jails violated his civil rights.
Justice Anthony Kennedy said in his majority opinion for the court's conservative justices that when people are going to be put into the general jail population, "courts must defer to the judgment of correctional officials unless the record contains substantial evidence showing their policies are an unnecessary or unjustified response to problems of jail security."
The Public Gets Tee'd Up For [Junk Bond] Slaughter - Again...
By Dave - The Golden Truth
"It's the only place I can find any yield whatsoever with a reasonable risk," said Lee Hevner, an individual investor who said he started buying junk bonds this year for the first time.
Those will be famous last words. That poor sot allowed his ignorant, greedy investment advisor talk him into putting 15% of $500k stash in junk bonds. Hope he can afford to lose most of it.
Once again, courtesy of the Fed's zero interest rate policy (ZIRP) and the Government's catastrophic fiscal policies, the yield-starved individual investor has been flooding the high yield market with money in a desperate search for investment yields that have any shot at keeping up with the true cost of living.
How billionaires destroy democracy Wealthy Wall Streeters have rigged the economy and the government against the people. Here's how they did it
BY LINDA MCQUAIG AND NEIL BROOKS - Salon.com
There are many words that could be used to describe Barack Obama, but one adjective decidedly doesn't fit: Aggressive. So it was more than passing strange when a prominent member of Wall Street — Stephen Schwarzman, chairman of the private equity giant Blackstone Group — compared actions by President Obama to one of the most notoriously aggressive acts by one of history's most aggressive villains. Speaking to the board of a nonprofit group, Schwarzman fiercely denounced initiatives by the Obama administration: "It's war. It's like when Hitler invaded Poland in 1939."
The 15 Trillion Dollar Party
By Michael Snyder - TheEconomicCollapseBlog.com
If you knew that you could live in luxury for the rest of your life but that by doing so it would absolutely destroy the future for your children, your grandchildren and your great-grandchildren would you do it? Well, that is exactly what we are doing as a nation. Over the past several decades, we have stolen 15 trillion dollars from future generations so that we could enjoy a dramatically inflated level of prosperity. Our 15 trillion dollar party has been a lot of fun, but what we have done to our children and our grandchildren has been beyond criminal. We ran up the greatest mountain of debt in the history of the planet and we are sticking them with the bill. Sadly, both political parties have been responsible for the big spending that has been going on. Both Democrats and Republicans have run up huge budget deficits when in power. But instead of learning the hard lessons of the past, both political parties continue to vote for even more debt. They would rather continue to steal trillions of dollars from future generations than have the party end and have to face the consequences.
Someone You Love: Coming to a Gulag Near You
By Chris Hedges - Truthdig.com
The security and surveillance state does not deal in nuance or ambiguity. Its millions of agents, intelligence gatherers, spies, clandestine operatives, analysts and armed paramilitary units live in a binary world of opposites, of good and evil, black and white, opponent and ally. There is nothing between. You are for us or against us. You are a patriot or an enemy of freedom. You either embrace the crusade to physically eradicate evildoers from the face of the Earth or you are an Islamic terrorist, a collaborator or an unwitting tool of terrorists. And now that we have created this monster it will be difficult, perhaps impossible, to free ourselves from it. Our 16 national intelligence agencies and army of private contractors feed on paranoia, rumor, rampant careerism, demonization of critical free speech and often invented narratives. They justify their existence, and their consuming of vast governmental resources, by turning even the banal and the mundane into a potential threat. And by the time they finish, the nation will be a gulag.
UPS Store offering AARP discount
New Mexico Business Weekly by Jacques Couret,
Senior Online Editor - Atlanta Business Chronicle
The UPS Store, a unit of United Parcel Service Inc., now gives card-carrying AARP members a 15 percent discount.
UPS (NYSE: UPS) announced Monday a partnership with AARP to give the seniors organization's members discounts at the more than 4,300 UPS Store locations. There are 12 UPS Store locations in Albuquerque.
How Stockton, California Went Broke in Plain Sight
[Google title for free article pass] The new era of local government:
Taxpayers can expect to pay more but get less.
By STEVEN MALANGA - WSJ.com - $$
What does it look like when a city of almost 300,000 flirts with becoming America's largest ever city to go bankrupt? Welcome to Stockton, Calif.
An inland seaport in California's Central Valley, Stockton exemplifies the fiscal hole that many municipalities have dug for their taxpayers. Starting in the mid-1990s, the city began attracting frenzied bargain hunters who drove up home prices nearly threefold. Then the California home market crashed spectacularly in 2007. Foreclosures soared, tax revenues declined, and Stockton discovered that the weight of its fiscal commitments might spell bankruptcy.
Goldman raising money for new home-loan fund The fund, which will buy home-loan bonds to benefit
from an improving real estate market, will open Sunday.
Bloomberg News - Crain's New York Business
(Bloomberg) - Goldman Sachs Group Inc., which survived the subprime mortgage crisis by making bets on a housing decline, is raising money for a new fund that will buy home-loan bonds to benefit from an improving real estate market.
The U.S. Housing Recovery Fund is expected to finish its first round of capital raising and open April 1, according to a marketing document obtained by Bloomberg News. It will focus on senior-ranked securities without government backing, many of which now carry junk credit grades.
Foreclosure reforms to widen
By Brady Dennis - WashingtonPost.com
State and federal officials who recently completed a $25 billion settlement with five of the nation's largest banks over shoddy foreclosure practices have begun discussing how to apply some of the terms of that deal to a wider array of financial firms.
The landmark agreement finalized in February in part forces the five major banks to overhaul flawed and fraudulent foreclosure practices that had become common in recent years. Those changes include forbidding so-called "robosigning" of documents and providing a single point of contact to homeowners, who in the past often faced foreclosure from the banks even as they were negotiating ways to remain in their homes.
Construction Spending in U.S.
Unexpectedly Declined in February
Timothy R. Homan - WashingtonPost.com
April 2 (Bloomberg) -- Construction spending in the U.S. unexpectedly fell in February, reflecting broad-based declines that indicate the building industry will take time to stabilize.
The 1.1 percent decrease, the biggest in seven months, followed a revised 0.8 percent retreat in January that was larger than previously estimated, Commerce Department figures showed today in Washington. The median estimate of 45 economists surveyed by Bloomberg News called for a 0.6 percent increase.
To Fix America's Education Bureaucracy, We Need to Destroy It Successful schools don't have a formula, other than that teachers and principals are free to follow their instincts.
By Philip K. Howard - TheAtlantic.com
America's schools are being crushed under decades of legislative and union mandates. They can never succeed until we cast off the bureaucracy and unleash individual inspiration and willpower.
Schools are human institutions. Their effectiveness depends upon engaging the interest and focus of each student. A good teacher, studies show, can dramatically improve the learning of students. What do great teachers have in common? Nothing, according to studies -- nothing, that is, except a commitment to teaching and a knack for keeping the students engaged (see especially The Moral Life of Schools). Good teachers don't emerge spontaneously, and training and mentoring are indispensable. But ultimately, effective teaching seems to hinge on, more than any other factor, the personality of the teacher. Skilled teachers have a power to engage their students -- with spontaneity, authority, and wit.
Senior citizens continue to bear burden of student loans Many seniors find burden of student loans
tarnishing their golden years
By Ylan Q. Mui - WashingtonPost.com
The burden of paying for college is wreaking havoc on the finances of an unexpected demographic: senior citizens.
New research from the Federal Reserve Bank of New York shows that Americans 60 and older still owe about $36 billion in student loans, providing a rare window into the dynamics of student debt. More than 10 percent of those loans are delinquent. As a result, consumer advocates say, it is not uncommon for Social Security checks to be garnished or for debt collectors to harass borrowers in their 80s over student loans that are decades old.
Pinnacle Airlines files Chapter 11
Atlanta Business Chronicle by Andy Ashby, Staff writer
Pinnacle Airlines Corp. and its subsidiaries have filed Chapter 11 bankruptcy protection after months of cutting costs and renegotiating contracts to avoid it.
Pinnacle, through its subsidiaries Pinnacle Airline Inc. and Colgan Air Inc., is a regional airline servicing main airline partners as Delta Connection, United Express and US Airways Express.
The Memphis, Tenn.-based airline holding company intends to use the Chapter 11 process to continue implementing a turnaround plan aimed at addressing its operational and financial challenges in the rapidly-evolving regional airline industry, according to a company release. The company also plans on cutting back service through United Airlines and US Airways while getting some financing help from Atlanta-based Delta Air Lines Inc.
The Strategic Petroleum Reserve
Becomes a Political Football (Yet Again)
BY DR. KENT MOORS, Global Energy Strategist, Money Morning
With the prices of both crude oil and gasoline racing higher, it was just a matter of time before the cries began sounding to open up the Strategic Petroleum Reserve (SPR).
The White House is now under renewed pressure to combat rising gas prices by releasing that oil.
The problem is that the SPR was not created to deal with our current crises.
Following the Arab oil embargo in 1973, which resulted in long lines at the pump in the U.S. and alternate fueling days (based on your license plate), Washington made the decision to establish the national reserve.
How the Big Energy Companies Plan
to Turn the United States into a Third-World Petro-State Will North America become not just the next boom continent for energy bonanzas, but a new energy Third World?
by MIchael T. Klare - AlterNet.org
The "curse" of oil wealth is a well-known phenomenon in Third World petro-states where millions of lives are wasted in poverty and the environment is ravaged, while tiny elites rake in the energy dollars and corruption rules the land. Recently, North America has been repeatedly hailed as the planet's twenty-first-century "new Saudi Arabia" for" tough energy" -- deep-sea oil, Canadian tar sands, and fracked oil and natural gas. But here's a question no one considers: Will the oil curse become as familiar on this continent in the wake of a new American energy rush as it is in Africa and elsewhere? Will North America, that is, become not just the next boom continent for energy bonanzas, but a new energy Third World?
Tea Party conservatism gaining a foothold,
as per liberal opinion... The Right's Stealthy Coup
By E.J. Dionne, Jr. - Truthdig.com
Right before our eyes, American conservatism is becoming something very different from what it once was. Yet this transformation is happening by stealth because moderates are too afraid to acknowledge what all their senses tell them.
Last week's Supreme Court oral arguments on health care were the most dramatic example of how radical tea partyism has displaced mainstream conservative thinking. It's not just that the law's individual mandate was, until very recently, a conservative idea. Even conservative legal analysts were insisting it was impossible to imagine the court declaring the health care mandate unconstitutional, given its past decisions.
6 Reasons the Koch Brothers Had a Very Bad Week An FBI investigation, a new documentary, and a court overturned one of their pet politicians' pet laws: here's a look inside the Kochs' worst week in a while.
By Adele M. Stan - AlterNet.org
Were there a way for a few billion clams to wipe a week off the calendar, one imagines that Charles and David Koch, the multibillionaire principals of Koch Industries, would like to see the final week of March 2012 vaporized, at least in the public mind. For the Kochs, it was a week of bad news: a new documentary about their political activity and corporate negligence was making a splash -- on the same day a story broke announcing an FBI investigation of two Wisconsin groups tied to Americans for Prosperity, the political ground organization they founded and fund.
Sheriff Joe faces crossroads in civil rights case Maricopa County Sheriff Joe Arpaio faces an April 14 deadline for concluding talks with the U.S. Justice Department to settle a wide range of civil rights allegations
By Jacques Billeaud, Associated Press - PoliceOne.com
PHOENIX — America's self-proclaimed toughest sheriff is fast approaching a crossroads where he must decide either to settle claims that his officers racially profiled Latinos in his trademark immigration patrols — and overhaul his practices — or take his chances at trial.
Maricopa County Sheriff Joe Arpaio faces an April 14 deadline for concluding talks with the U.S. Justice Department to settle a wide range of civil rights allegations, including that the sheriff launched some immigration patrols based on letters from people who complained about people with dark skin congregating in a given area or speaking Spanish but never reporting an actual crime. The sheriff has become nationally known for his tough stance against illegal immigration.
Mainstream Media Power to Indict or Ignore
By Greg Hunter's USAWatchdog.com
About a month ago, renowned Arizona Sherriff Joe Arpaio made an astounding claim in a public press conference, "A six month long investigation conducted by my cold case posse has lead me to believe there is probable cause to believe that President Barack Obama's long-form birth certificate released by the White House on April 27, 2011, is a computer-generated forgery," said Arpaio. The Maricopa County Sherriff claimed President Obama's Hawaiian selective-service card was, also, "most likely a forgery." (Click here for the complete press release from the Maricopa County Arizona Sherriff's office. This includes 6 videos explaining the Obama birth certificate investigation.)
Richard Clarke:
All U.S. Electronics From China Could Be Infected
DefenseTech.org
Well, it's been pretty obviuos for a while now that China's been hacking into some of America's most important businesses and government agencies and stealing reams of data. We've heard countless reports about Pentagon info being stolen orabout critical data on the F-35 Joint Strike Fighter being plucked from defense contractors networks — with China being the main suspect.
Well, former U.S. counter-terrorism czar –currently running his own cybersecurity firm — Richard Clarke is coming out and saying that all electronics made in China may well have built-in trapdoors allowing Chinese malware to infect American systems on command. The malware could do everything from take over a device to disabling it to secretly siphoning information off of it.
China Says U.S. Has No Authority
To Impose Unilateral Sanctions On Iran
Alt-Market.com
China has wholly rejected the new sanctions from the United States which take aim at all foreign banks and financial institutions which continue to deal with Iranian crude oil.
"The Chinese side always opposes one country unilaterally imposing sanctions against another according to [its] domestic law. Furthermore it does not accept the unilateral imposition of those sanctions on a third country," China's Foreign Ministry said in a brief statement on Saturday, according to the Associated Press.
FDIC shutters bank in Michigan,
tallies 16 US bank failures so far this year
AP - WashingtonPost.com
WASHINGTON — Federal regulators have closed a bank in Michigan, bringing to 16 the number of banks that have failed in 2012.
The Federal Deposit Insurance Corp. said Friday that it shuttered Fidelity Bank based in Dearborn, Mich.
The bank, with 15 branches, had about $818.2 million in assets and $747.6 million in deposits as of Dec. 31.
Everything Is Going To Be Alright?
By Michael Snyder - TheEconomicCollapseBlog.com
Is the U.S. economy going to be okay? Well, if the only source you listened to was the mainstream media, you would be left with the distinct impression that the U.S. economy is heading toward a full recovery and that everything is going to be alright. Unfortunately, that is not the case at all. The United States is rapidly becoming poorer as a nation and less competitive in the global marketplace. At the same time, consumer debt levels are rising, corporate debt levels are rising, state and local government debt levels are rising and the U.S. government is indulging in a debt binge unlike anything the world has ever seen. Considering the insane amount of money the U.S. government has been pumping into the economy, we should have seen a much more robust recovery by now. Instead, the employment statistics have barely moved and government dependence is at an all-time high. That is really sad, because this is as good as "the recovery" is going to get. The next major economic downturn is just around the bend, and in future years millions of us will desperately yearn for the "good old days" of 2012.
Whose Recovery?
By Robert Reich
Luxury retailers are smiling. So are the owners of high-end restaurants, sellers of upscale cars, vacation planners, financial advisors, and personal coaches. For them and their customers and clients the recession is over. The recovery is now full speed.
But the rest of America isn't enjoying an economic recovery. It's still sick. Many Americans remain in critical condition.
The Commerce Department reported Thursday that the economy grew at a 3 percent annual rate last quarter (far better than the measly 1.8 percent third quarter growth). Personal income also jumped. Americans raked in over $13 trillion, $3.3 billion more than previously thought.
Recovering America: Earning Less,
Spending More, $6.7 Trillion Poorer
Tim Cavanaugh - Reason.com
Since Ben Bernanke the hero saved the global economy, things have been coming up roses for, well, nobody.
The Department of Commerce reports that Americans are spending far more than they are making. That's good news, according to CNN:
[PNC economist Stuart] Hoffman said he was encouraged by the fact that Friday's report showed a 1.6% increase in spending on durable goods, which are typically big-ticket items. That was driven by strong auto sales during the month, as automakers reported the best new-car sales in four years.
Brave New Bank? BRICS moot dropping dollar, IMF
The BRICS summit has wrapped up in India. Creating an alternative global lender and stepping away from the dollar as a reserve currency were among their main objectives. RT also spoke to Dr Sreeram Chaulia, who is a Vice Dean at the Jindal School of International Affairs. He believes institutions like the IMF and the World Bank have outlived their uselfulness.
Gold and Silver Outperform Major Currencies -
Fiat Devaluation Continues
BY GOLDCORE - FinancialSense.com
....Gold has been stuck in range of roughly $1,630 to $1,700 in recent weeks, as risk appetite has returned after the latest European debt "solution" which saw the battered can kicked down the shortening road once again.
Nothing has been solved with regard to the European debt crisis and debt crises in Japan, the UK and the US now loom.
The misguided panacea of heaping debt upon debt and shifting debt onto government balance sheets, debt monetisation and currency debasement is leading to continuing currency devaluations internationally.
Gold Is Manipulated (But That's Okay) Price suppression equals buying opportunity
BY CHRIS MARTENSON PHD - FinancialSense.com
The price of gold is being actively managed by central planners and their proxies. The main culprit here appears to be the US authorities, as the manipulation is most apparent in the US open gold market. For the most part, this 'management' has resulted in letting the price of gold rise, but not too much, or too quickly.
The price of gold has always been an object of interest for governments and central bankers. The reason is simple enough to understand: Gold is an objective measure of the degree to which fiat money is being managed well or managed poorly.
Warren Buffett Scorns Gold. Bad Move!
By Addison Wiggin - DailyReckoning.com
03/30/12 Baltimore, Maryland – Warren Buffett doesn't like gold. In this year's annual letter to Berkshire Hathaway shareholders, Warren Buffett scorned gold as an asset that is "forever unproductive."
And he's right about that…
But investors don't buy gold because they hope it will produce something. They buy gold because they know that no one can produce it. Therefore, the more that folks distrust their national currency, the more they put their trust in the ultimate currency: gold.
European bailout plan funding could support Gold
LONDON (Commodity Online): A boost in the eurozone bailout funds to EUR700 billion from EUR500 billion could support gold.
According to news reports, EUR500 billion will come from the European Stability Mechanism, the permanent bailout fun, with EUR200 billion from the European Financial Stability Facility which is the existing bailout programs for Greece, Ireland and Portugal.
Both Commerzbank and HSBC said that, gold could find support on this news because of its safe character.
Fed's Bernanke disparages the Pseudo-Gold-Standard
By Dr Jeffrey Lewis - CommodityOnline.com
Just about all of the world's national currencies in circulation today consist of paper or fiat currencies that have been assigned value by official decree or fiat, rather than due to any real intrinsic value they may possess, other than perhaps the ability to generate a significant amount of heat when burned. Furthermore, these currencies represent the debt of a country, rather than any real store of value.
Many people have become concerned about the ability of such debt based paper currencies to retain their value over time in comparison to hard currencies with well-established intrinsic value like silver and gold.
Cashless: The Coming War on Tax-Evasion
and Decentralized Money
BY CRIS SHERIDAN - FinancialSense.com
There are two major trends taking place that are shaping up as a recipe for disaster. On the one hand, we have massively indebted governments around the world desperate for tax revenues and, on the other, steadily growing multi-trillion underground economies whose main goal is to avoid paying them.
According to a recent study, the amount of uncollected tax revenues in the U.S. is estimated around a whopping 500 billion dollars per year1—enough money to bailout most of Europe.
Will a cashless society lift all boats,
or will it sink the '99 percent'?
By Dominic Basulto - WashingtonPost.com
Sweden's push to become the first nation to phase out physical bills and coins marks the next major evolution in the creation of the cashless society. In some areas of Sweden, people no longer need to carry bills or plastic cards, and payments for everyday items such as bus tickets and groceries are made by mobile devices. The ultimate point of arrival, of course, is the creation of the truly cashless society in which all payments are digital and mobile devices contain all the information we once entrusted to our wallets.
So will this new era of digital money lead to a rising tide that lifts the boats of America's "99 percent" — or will it lead to a further chasm in the digital divide?
Brave New Bank? BRICS moot dropping dollar, IMF
The BRICS summit has wrapped up in India. Creating an alternative global lender and stepping away from the dollar as a reserve currency were among their main objectives. RT also spoke to Dr Sreeram Chaulia, who is a Vice Dean at the Jindal School of International Affairs. He believes institutions like the IMF and the World Bank have outlived their uselfulness.
Goldman Sachs: Rewarded for Greek Debt Scheme
Written by ECB Watch - EconIntersect.com
In an earlier article, EU's selective Lessons from Greece, we saw that EU Parliament's investigation of the financial crisis (CRIS), and the hearing Lessons from Greece (ECON/7/02578), lacked the resolve to address the Greece/Goldman secret loan that was allegedly improper and exacerbated Greece's ills.
Goldman Sachs' explanations contained gaping holes, and that was left unchallenged. Perhaps the most striking example of it is the the claim by its spokesman at a 2010 hearing before the EU parliament that he didn't know of the single most important restructuring of the deal in 2005:
Germany's reluctant hegemony and misguided Calvinism If the purpose of monetary union is to tie down a "European Germany" with silken cords, the Kohl-Mitterrand legacy has gone horribly wrong.
By Ambrose Evans-Pritchard, in Berlin - Telegraph.co.uk
Germany's glistening new capital on the Spree - capped by Sir Norman Foster's Reichstag dome - is the throbbing heart of a reborn First Reich, a secular and democratic variant of the Imperium Romanum Sacrum or Hohenstaufen Empire. Brussels has become a backwater again.
Half of Europe lives in trepidation of the mercurial Wolfgang Schäuble, the crippled idealist and mastermind of reunification whose own tortured emotions have become a Continental curse, and who entirely conformed to his reputation for irascible outbursts when I met him last week in the forbidding board room of Hermann Göring's Luftwaffe headquarters. The euro has delivered a "German Europe" after all.
EU hearing, Lessons from Greece
Public hearing - Lessons from Greece (ECON/7/02578) - Goldman Sachs spokesman Gerald Corrigan tells Eurostat head he knows nothing of the 2005 restructuring (the single most significant) of the secret loan granted by bank to Greece's debt agency in 2001.
Argentina threatens to sue banks
helping Falklands oil explorers
as trade war with Britain escalates A group of British and American banks have been threatened with legal action by the Argentine government for advising and writing research reports about companies involved in the Falkland Islands' £1.6bn oil industry.
By James Quinn - Telegraph.co.uk
In what amounts to the start of a new trade war between the UK and Argentina, the banks - understood to include the Royal Bank of Scotland, Barclays Capital and Goldman Sachs - have been warned they face criminal and civil action in the Argentine courts.
The threats were made in a series of letters sent to as many as 15 banks by the Argentine embassy in London over the last ten days.
The letter, a copy of which has been seen by The Sunday Telegraph, warns the institutions that even merely writing research notes on exploration companies involved in the Falklands constitutes "a violation of the applicable domestic and international rules".
Market rigging gets too obvious
even for Bill Buckler and Jim Grant
By: Chris Powell, Secretary/Treasurer, GATA - GoldSeek.com
Nothing has been more disappointing and frustrating to GATA in its nearly 13 years of fighting gold and silver market manipulation than the refusal to acknowledge the issue by many of those who have affected to be devoted friends of the monetary metals and free markets.
GATA Chairman Bill Murphy long has called this the Not Invented Here Syndrome, a matter of the intellectual vanity of prima donnas who can't bring themselves to admit that mere upstarts might discover anything profound in the prima donnas' field. From 45 years in journalism the experience of your secretary/treasurer is that most endeavors are full of people whose success has made them so arrogant that they think that nothing could be happening if they don't know about it already. (While journalism inclines its practitioners to the exactly opposite position -- to realize every day how much more they don't know -- it doesn't necessarily give them the courage to report what they learn.)
Charles Biderman: The Problem with Rigged Markets
by Adam - ChrisMartenson.com
"Even Wile E. Coyote had to come back down to earth sooner or later", says Charles Biderman, founder of TrimTabs Investment Research. In his opinion, the prices of stocks and bonds - enabled by excessive financialization of our economy and central bank money printing - have been defying gravity for a dangerously long time.
If we continue to do all we can to preserve the status quo -- to maintain "phony" asset price levels as Charles calls them -- at best we will restrict overall growth and handicap the economy.
Ignore GDP: This Is the Obscure Stat
That Explains the Hot Recovery The recovery is real, even if it's not spectacular, and Gross Domestic Income explains why.
By Matthew O'Brien - TheAtlantic.com
Something odd has happened the past few months. The job numbers tell us the recovery is accelerating. The GDP numbers say it's not. This discrepancy has confounded expectations because there's usually a fairly stable relationship between the GDP and employment -- economists call it Okun's Law. The growth-and-jobs gap has since launched a thousand blog posts.
But it turns out there might not be a gap, after all. Today we received news that GDI grew at a gangbusters rate in the fourth quarter of 2011. Bye-bye, growth-and-jobs gap.
"Human history seems logical in afterthought but a mystery in forethought. Writers of history have a way of describing interwar societies as coursing from postwar to prewar as though people alive at the time knew when that transition occurred." – Strauss & Howe - The Fourth Turning
Watching pompous politicians, egotistical economists, arrogant investment geniuses, clueless media pundits, and self- proclaimed experts on the Great Depression predict an economic recovery and a return to normalcy would be amusing if it wasn't so pathetic. Their lack of historical perspective does a huge disservice to the American people, as their failure to grasp the cyclical nature of history results in a broad misunderstanding of the Crisis the country is facing. The ruling class and opinion leaders are dominated by linear thinkers that believe the world progresses in a straight line. Despite all evidence of history clearly moving through cycles that repeat every eighty to one hundred years (a long human life), the present generations are always surprised by these turnings in history. I can guarantee you this country will not truly experience an economic recovery or progress for another fifteen to twenty years. If you think the last four years have been bad, you ain't seen nothing yet.
Foreclosures give rise to new industry
By Edward Robinson - WashingtonPost.com
Ken Major climbs the steps of a county courthouse in a San Francisco suburb with $500,000 in cashier's checks in one hand and a list of addresses in the other. Major is a buyer for Waypoint Real Estate, an Oakland-based investment firm that is scooping up foreclosed homes in California.
On this afternoon, he joins a dozen house flippers as an auctioneer starts hawking the latest batch of defaulted properties to hit the market. Major bids on a three-bedroom house in Antioch, and after other buyers counter, he wins at $147,600.
The Foreclosure Landscape in 2012:
Recent Court Ruling to Have Dramatic Impact
Throughout the Year
By Christopher G. Brown - NationalMortgageProfessional.com
What trends will shape the mortgage foreclosure landscape in 2012? As I look towards the next 12 months, I'm expecting that the most influential trend will be a recent Connecticut Supreme Court ruling that could have a significant impact on who can sue to foreclose. As the foreclosure defense attorney who represented the borrower in this case, I had a front row seat on Connecticut's recent Supreme Court decision, and I'm expecting it to be something that will give lenders pause. Only a few months into 2012, I'm already seeing how it's been rocking business as usual when it comes to who has the right to foreclose. Before this decision, lenders claimed that being a holder (the legal term for possessing the note) meant that they had the right to foreclose. The court's decision confirms that only the owner of the debt has a right to foreclose. Holder status is not enough. I would expect lenders to be slow to change their procedures to account for this decision, which could very likely mean more dismissed foreclosures in 2012.
Affordable Housing and Social Engineering in New Jersey
By Timothy B. Lee - Ars Technica - TheAtlantic.com
A few weeks ago I wrote a post questioning conservative antipathy toward the New Jersey Supreme Court's famous Mount Laurel decision. That's a decision that held that exclusionary zoning schemes that make it effectively impossible to build low-income housing in a particular municipality violate the New Jersey constitution. Mike Proto, a spokesman for the conservative activist group Americans for Prosperity, emailed me the following response:
Forcing high density, low income housing into every town in New Jersey is hardly the epitome of a free market. Quite to the contrary, it is social engineering and central planning run amok and everything conservatives rightly oppose. This isn't about property rights, per se. It's about a renegade, activist court imposing its policy preferences against the plain language in the state constitution. Citizens are free to live where they please so long as they are successful enough to do so. And New Jersey communities, through a democratic process, ought to have the right to determine the destiny and character of those communities. Mt. Laurel has stripped this away.
Why Do So Many Americans Drop Out of College? Unprepared students sign up for school because they think a degree is their passport to the middle class. They should have other options.
By Jordan Weissmann - TheAtlantic.com
The phrase "dropout factory" is ordinarily applied to America's failing high schools -- the ones where students are expected to fall through the cracks, where those who make it past graduation and on to college are considered the exceptions, the lucky survivors. But by that definition, another level of U.S. education counts as a "dropout factory": our entire higher education system.
That's the basic message of a recent article by Reuters' Lou Carlozo, which digs into the reasons why so many American college students fail to finish their educations. Just 56 percent of students who embark on a bachelor's degree program finish within six years, according to a 2011 Harvard study titled Pathways to Prosperity. Just 29 percent of those who seek an associates degree obtain it within three years. According to the Organization for Economic Co-operation and Development, just 46 percent of Americans complete college once they start, worst among the 18 countries it tracks.
More BS from the BLS
By Greg Kadajski - DailyReckoning.com
03/30/12 Baltimore, Maryland – In an early morning press release, the Bureau of Labor Statistics announced today that it would no longer include "people" in any of its estimates of US unemployment. According to the press release, the move is part of a new initiative to "more accurately report US employment figures through a measured omission of irrelevant data, stemming primarily from the coincidental fact that people exist."
The new calculating practice — being dubbed the "What Unemployment?" model — is meant to replace the controversial "Birth/Death" model, which the BLS has long-used as a way to make up for the lag in reporting associated with the creation of new businesses. But according to a BLS spokesperson, the B/D model exhibited some serious design flaws, namely that it "factored actual people into its data set."
Nothing to See Here:
ABC Totally Skips Any Mention
of Obamacare's Bad Day in Court
By SCOTT WHITLOCK - WSJ.com
From the Media Research Center
The Obama administration suffered another bad day in the Supreme Court, Wednesday, leading many to wonder if all of the President's health care law will be entirely scrapped. ABC's Good Morning America on Thursday responded to this with silence, totally ignoring the story.
GMA co-host George Stephanopoulos on Wednesday referred to the case as "historic," but apparently lost interest a day later.
Healthcare reform:
looking for hints in aggressive supreme court questions White House says it's unwise to predict anything, but that isn't stopping analysts who think days are numbered for 'Obamacare'
By Chris McGreal in Washington - Guardian.co.uk
President Barack Obama has been counting on Americans overcoming their scepticism and growing to love his landmark health reforms. He has even embraced the tag "Obamacare", which opponents intended as a slur, in the belief that one day it will be shorthand for the greatest achievement of his presidency.
But after this week's supreme court showdown over one of the most divisive pieces of legislation in years, few are predicting the law will survive long enough for people to appreciate what the White House says are the life changing benefits of the Affordable Care Act.
Shall We Be Citizens or Subjects?
By Ken Blackwell PatriotPost.us
In Washington this week, a rare drama is unfolding in the U.S. Supreme Court. The momentous question that is before the court is this: Shall we be Citizens or Subjects?
The high court is considering a historic challenge by twenty-six states to the Affordable Care Act, otherwise known as ObamaCare. Hundreds of people have stood in line, some of them overnight in the chill March air, to get inside. Our colleague, Ken Klukowski, was one of those fortunate few. We are relying on Ken's reporting and also on the impressions of Virginia Attorney General Ken Cuccinelli.
OBAMACARE FIGHT 'SOON TO BE OVER'? LOL! 'We are already … preparing for years of new court battles'
By Bob Unruh - WND.com
Pretty soon the Supreme Court will rule on the validity of Barack Obama's plan to have the government tell consumers what products to buy – in the Obamacare case – and then all those arguments will be done. After all, that is the highest court in the land, right?
LOL! As the new text-language expresses for "laugh out loud."
"We are already looking beyond June and preparing for years of new court battles over health care mandates," explained Brad Dacus, president of Pacific Justice Institute.
"Without question, we expect the Supreme Court's decision to have both immediate and long-term impact on the authority of the federal government on our lives," he said.
Liberty and Health Care for All
By Bill Boyarsky - Truthdig.com
In a bare basement law school classroom last week, four students argued the merits and weaknesses of the health care act. It was an exercise no doubt replicated around the country as legal scholars warmed up for the U.S. Supreme Court's three-day hearing on the law this week—the most searching examination of federal power in decades.
Several miles away at a community health clinic, restaurant workers, gardeners, housekeepers, car washers, nannies, day laborers and others of the low paid who keep Los Angeles running were being given medical care, as were their families. The long-term future of their care awaited the Supreme Court's decision.
ANOTHER $17 TRILLION SURPRISE FOUND IN OBAMACARE 'The bill has to be removed from the books
because we don't have the money'
By Neil Munro - The Daily Caller
Senate Republican staffers continue to look though the 2010 health care reform law to see what's in it, and their latest discovery is a massive $17 trillion funding gap.
"The more we learn about the bill, the more we learn it is even more unaffordable than was suspected," said Alabama Sen. Jeff Sessions, the Republicans' budget chief in the Senate.
"The bill has to be removed from the books because we don't have the money," he said.
Keystone Pipeline Debacle
May Cost Obama 2012 Election:
Lindsey Williams Reports
Alex also continues his discussion with pastor and author Lindsey Williams. In his Sunday, March 25 interview with Alex, Williams talked about the impending financial crash, what currency is a safe bet, and why Obama may not be re-elected due to his involvement in Keystone Pipeline.
CIVIL WAR HAS BEGUN: AMERICA IS FATALLY DECEIVED
By Greg Evensen - NewsWithViews.com
The war of northern aggression began forming in the 1840's as the government even then, moved further and further away from a constitutional republic. Vitriolic debate about growing, indifferent central taxation coursed through the halls of Congress in the 1850's. Dire threats were taking shape by 1858, and there was no turning back by 1860. For those who understand our Republic and the efforts to sustain freedom, in spite of all out war waged upon it then and since the end of the last internal struggle, the federal economic/banking/political/internationalist/police state has had but one goal. That is, the internal destruction of the sovereign states and the imposition of a socialist government tyranny under the ongoing protection of the federal court system and the threat of military intervention to achieve the final dark victory against the American people.
No Country for Con Men:
Sheriff Joe and the Cold Case Posse
Put Obama To Shame Arizona's Cold Case Posse
Rides To The Rescue of America And The Constitution.
By Saman Mohammadi - Prisonplanet.com
Sheriff Joe Arpaio has guts. He is taking on the alien in the White House by saying he is a liar and that his birth certificate is a forgery.
This is real life cowboys versus aliens.
The criminal Obama administration and rotten establishment media can try to vilify the Sheriff, and point out his flaws, but they can't hide the reality that they have been put to shame by him and his cold case posse.
Highlights Of Sheriff Joe's March 31 Press Conference
BY DANIEL NOE - WesternJournalism.com
Sheriff Joe Arpaio and the lead investigator of the MCSO Cold Case Posse, Mike Zullo, presented their preliminary findings today (March 31, 2012) regarding their investigation into the "probable" forgery of Barack Obama's online birth certificate and selective service forms. Most of the event was comprised of information that has already been released in earlier press conferences, but not widely reported on by the mainstream media, out of fear of ridicule, or perhaps fear of sanctions by the federal government. Despite this, here were several updates to this case that were disclosed today. The conference took place at the Church on the Green in Sun City, Arizona.
HIGH COURT JUSTICE: OBAMA BIRTH CERTIFICATE FISHY Says evidence raises 'serious questions about authenticity'
By Drew Zahn - WND.com
An Alabama State Supreme Court justice earlier this week agreed that findings suggesting Barack Obama presented a forged birth certificate to the nation "would raise serious questions about the [document's] authenticity" if presented as evidence in court.
Though the Alabama court denied a a petition filed by Hugh McInnish seeking to require an original copy of Obama's birth certificate before the sitting president would be allowed on the state's ballot in November, Justice Tom Parker filed a special, unpublished concurrence in the case arguing that McInnish's charges of "forgery" were legitimate cause for concern.
Biden Hints at More Gun Laws
in Wake of Trayvon Martin Case
By Kurt Nimmo - PrisonPlanet.com
Vice president Joe Biden told CBS News Florida's "Stand Your Ground" self-defense law will become a subject of debate following the Trayvon Martin shooting.
"It's important that people be put in a position where their Second Amendment rights are protected, but that they also don't, as a consequence of the laws, unintendedly put themselves in harm's way," Biden told Bob Schieffer in an interview that will air on "Face the Nation" on Sunday.
Biden told CBS it is questionable if firearms allow people to protect themselves. "The idea that there's this overwhelming additional security in the ownership and carrying concealed and deadly weapons… I think it's the premise, not the constitutional right, but the premise that it makes people safer is one that I'm not so sure of," Biden said.
FEDS REFUSE TO RELEASE OBAMA DRAFT DOCS TO SHERIFF JOE Arizona lawman's team believes registration fraudulent
By Jerome R. Corsi - WND.com
The Selective Service System has declined Maricopa County Sheriff Joe Arpaio's request to see the original copy of Barack Obama's Selective Service registration form.
Arpaio's Cold Case Posse investigating Obama's eligibility announced at a March 1 press conference that it believes there is probable cause that the registration is fraudulent.
A three-sentence March 22 letter written on behalf of Selective Service Director Lawrence G. Romo, however, dismissed the request.
NSA vs USA: Total surveillance zooms-in on Americans
Ever evolving high-tech gadgets and the Internet have given Big Brother a peep hole into the lives of everyday Americans. Now, without the hassle of planting bugs or breaking and entering, the government can monitor virtually anything it wants.
Clinton: World must unite
to stop Assad's war on Syrian people Speaking to the 60-nation "Friends of the Syrian People" conference in Turkey, U.S. Secretary of State says she doubted whether Assad would ever adhere to a UN-sponsored peace plan.
Haaretz.com
U.S. Secretary of State Hillary Rodham Clinton expressed doubt Sunday about whether President Bashar Assad would ever adhere to a UN-sponsored peace plan to end Syria's year of bloodshed, and urged world solidarity against a regime that she said was waging war on its own people.
Clinton told the 60 nations attending the "Friends of the Syrian People" conference in Turkey that no one could "sit back and wait any longer," even as the United States refuses to entertain military options to intervene in the crisis. Instead, she urged unity behind a plan that includes more sanctions, humanitarian aid, support for the opposition and the promise of justice one day for the Assad regime's willing accomplices in human rights atrocities.
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