Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Friday 08.31.2012
The Gold Standard Goes Mainstream
[Google the title for FREE Article Pass] In the ferment within today's Republican Party, there's a growing realization that America's system of fiat money is part of the economic problem.
WSJ.com - $$
By SETH LIPSKY
An under-reported development of this campaign season is the Republican Party's decision this week to send Gov. Mitt Romney into the presidential race on a platform effectively calling for a new gold commission. The realization that America's system of fiat money is part of its economic problem is moving from the fringes of political discussion to the center.
This is a sharp contrast from the last time a gold commission was convened, in 1981, a decade after President Nixon abandoned the Bretton Woods system and opened the era of a fiat dollar. The 1981 commission recommended against restoring a gold basis to the dollar. But two members—Congressman Ron Paul and businessman-scholar Lewis Lehrman—dissented and outlined the case for gold.
Gold Option Traders Most Bullish
Since Bottom In October 2008
Submitted by Tyler Durden - ZeroHedge.com
A new and important bullish indicator for the gold market is that gold calls are at highs not seen since the October 2008 low as option traders go long gold in the belief that it will go higher. It suggests that option traders believe that U.S. Federal Reserve Chairman Ben Bernanke will hint at or announce additional money printing and monetary easing at the Jackson Hole, Wyoming, symposium. Alternatively, it suggests that they are bullish on gold due to the risks posed to the dollar and the risk of inflation taking off. The ratio of outstanding calls to buy the SPDR Gold Trust versus puts to sell jumped to 2.69 to 1 on August 24th and reached 2.76 earlier this month, the highest level since October 2008, according to data compiled by Bloomberg. Ownership of calls is up 26% since the July 20th options expiry. Ten of the most owned actively owned ETF option contracts are bullish. Option traders are regarded as savvier and tend to be more sophisticated then the more speculative futures traders.
By Focusing on the Economy,
We Are Ignoring Much Bigger Problems
By Joan Fischer - PatriotPost.us
Think back on the way the early Americans lived. Consider the quality of life, if you will, of the early pioneers who crossed the country in small covered wagons, who staked a claim to a small piece of land somewhere in the midwest or west, and who spent the next many years living off the land, growing their own food, hunting for meat, caring for sick family members, often without the aid of doctors or other medical practitioners.
These were our forebears. They didn't have the luxury of concerning themselves with those things that today's Americans place at the top of their list of concerns: the job market, affordable medical coverage, the unemployment rate, and the like. Those who came before us were busy doing what they had to do to simply survive from day to day, defending their freedoms, staking out and protecting what was theirs, and defining and facing down enemies.
The Fed's Radical QE Policy Is on the Chopping Block
BY GARY DORSCH - FinancialSense.com
Politicians running for the US Presidency, and their surrogates, are fond of saying "that this election is the most important of our lifetime." They invoke this cliché so reflexively and so often that it no longer has any meaning. The reason they say this election is so important is because they want listeners to believe, for whatever reason, that it pits two deeply contrasting visions for America against one another, with only one vision capable of winning.
At their core, US-elections are simply fought over the competing interests of just two political parties, - the Democrats and Republicans that control the political system, with a seemingly unbreakable monopoly. Each side wants to tinker with regulations, spending, and taxes to influence the economy; and pay rewards to their constituents. But the truth is, politicians of both parties are corrupted by financial contributions to their election campaigns. It leads to an unfair playing field, in which big Business gets even bigger, through mergers and acquisitions, and overseas operations, and leaves US-consumers at their mercy. Today, only half of US-households are paying taxes, and the other half is receiving entitlements. The US-economy is at the tipping point of collapse, similar to bankrupted states such as Greece and Spain.
Why the Jackson Hole Fed Meeting Will Look Familiar
By Jonathan Yates, Contributing Writer - MoneyMorning.com
U.S. Federal Reserve Chairman Ben Bernanke will take the podium this Friday at the economic policy summit in Jackson Hole, WY, as traders hang on every word hoping he'll deliver a clear signal of central bank action in 2012.
They have good reason to think the Jackson Hole Fed meeting can move markets. It was at this summit two years ago in August 2010 that Bernanke announced an economic stimulus program that came to be known as Quantitative Easing 2.
QE2 consisted of the Federal Reserve inflating its balance sheet to purchase $700 billion in U.S. Treasury bonds from November 2010 to June 2011. This was necessitated as no investors, either foreign or domestic, could be found to purchase U.S. Treasury bonds at such low interest rates.
A "close call" on more Fed easing
By Jonathan Spicer
Thu Aug 30, 2012 5:40pm EDT
(Reuters) - When Federal Reserve policymakers meet next month to decide whether to take action to boost the economy, it will be a "close call," a top Fed official said on Thursday on the eve of a speech by Chairman Ben Bernanke that has global markets on tenterhooks.
Atlanta Fed President Dennis Lockhart, a centrist voter on U.S. monetary policy, said further stimulus would have some positive effect on the U.S. economic recovery, but cautioned that the costs of such action are not altogether clear.
What no-stimulus speech by Ben Bernanke can mean
By Rakesh Neelakandan - CommodityOnline.com
Even as pure play investors and investment companies look forward to Jackson Hole speech, what does it mean if Bernanke says there is no stimulus?
"It could mean two things. Either the Fed reading the writing on the wall is positive about growth prospects of US economy, or it is trying hard to hide something." said Martin Patrick, a Kochi based economist from South India.
The Federal Reserve, by postponing a stimulus, would be feeling comfortable about the recent data. He added.
Monsters With Ominous Acronyms:
From A Nation of Investors To A Nation of Fed Watchers
By Wolf Richter - ZeroHedge.com
People are holding their breath. Fed Chairman Ben Bernanke is to speak in Jackson Hole on Friday. QE3 or not to be, that's the question. There isn't a soul in the markets that can shrug off even a single syllable of what he'll say. And if his answer isn't a clear and solidyes—with details on how much, by what mechanisms, and until when—market participants, analysts, bloggers, and TV economists will parse his speech down to the last iota and look for commas that they haven't seen before, and they'll interpret it and reinterpret it ad infinitum until the desired outcome has been established, namely more QE—regardless of what he says. Headlines have been stirring the excitement. My blood pressure is up, my nails are bitten down to the quick. I haven't slept in days. I'm ready. Oh dear Ben, I'm praying, let us have more QE.
Keiser Report: Fat Gorillas vs Middle-Class Monkeys (E333)
In this episode, Max Keiser and Stacy Herbert discuss the sound of one monkey-hand clapping as Alan Greenspan finger-painted the markets and grand heists ensued. In the second half of the show, Max Keiser talks to a former senior corporate and banking executive, David Smith, about Switzerland wearing concrete boots as it tries to maintain a currency peg to the euro with its only exit strategy being the Iraq one -- that is, they have no plan at all. They also discuss how HSBC might have missed the 7,000 suitcases of cash that would have been needed to launder $7 billion in drug cartel money.
Is Cashin Cashin' In On Obama?
Submitted by Tyler Durden - ZeroHedges.com
The Chairman of the fermentation committee, Art Cashin, usually keeps a very apolitical, sober (metaphorically speaking at least) and cool head on, as all veteran traders should. Which is why we were quite stunned to notice that even the NYSE floor veteran may have finally crossed the Rubicon in his political observations. And if Art feels this way, one wonders just how the other Wall Street players, whose voices have far less need to be moderate, really feel...
China's fears grow over eurozone crisis China has expressed deep alarm at the escalating crisis in Europe and warned against austerity overkill as Europe's crumbling demand sends shock waves through Asia.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Premier Wen Jiabao told German Chancellor Angela Merkel that Europe must "strike a balance" between fiscal tightening and measures to promote growth. "Europe's debt crisis has continued to worsen, giving rise to serious concerns in the international community. Frankly, I am also worried," he said.
His comments mark a shift in Chinese policy. Beijing has until now backed austerity across Euroland, but the severity of China's own downturn has begun to rattle policymakers.
Germany Calls for New EU Treaty Chancellor Merkel wants EU leaders to hold a convention to forge a new treaty that binds Europe yet closer together.
theTrumpet.com
Germany wants the European Union to hold a convention to create a new treaty to tie Europe closer together by the end of the year, Spiegel Onlinereported August 25. German Chancellor Angela Merkel's EU policy adviser Nikolaus Meyer-Landrut has discussed the idea with "high-level EU officials," Spiegelwrote.
Merkel would like the treaty to change the EU into a political union, with the power to intervene in the taxation and spending policies of individual nations. For example, Germany wants the European Court of Justice to be able to punish nations who borrow too much money.
Spanish Bonds Slump Most In A Month As Europe Turns Red
Submitted by Tyler Durden - ZeroHedge.com
The fulcrum security is bleeding; 10Y Spanish government bond spreads jumped 19bps today, the largest gain in almost a month, and are trading back above 525bps over Bunds (the worst in over three weeks). Even the front-end of the Spanish and Italian bond curves lost ground today - as the game of chicken between Rajoy and Draghi continues - with the ridiculous brinksmanship highlighting the entirely dysfunctional dis-union that really exists behind the scenes. European equity markets drifted lower all day, slammed lower after the US opened (with Germany's DAX underperforming - thanks to weak Autos - no surprise there for us), but bounced a little into the European close. EURUSD slumped 70 pips from its post-US-open intraday highs today - ending at 1.2500. Europe's VIX jumped back above 28% (from 21% just 10 days ago) - its highest in a month. Credit widened on the day, financials underperformed, and notably credit did not jump into the close like stocks did.
How Algorithms Came to Rule the World How the Nasdaq Got Hacked
By Christopher Steiner - Forbes.com
ON A DAY IN EARLY 1987, a man who worked for the Nasdaq stock market—let's call him Jones—showed up in the lobby of the World Trade Center. He found the appropriate elevator bank for his floor and pressed the up button. He was making a routine visit to one of the Nasdaq's fastest-growing
customers.
A receptionist greeted him and retreated to another room to fetch his host. When she returned, a short, dapper man with a full head of silvering hair accompanied her. Thomas Peterffy's blues eyes warmly greeted Jones. He spoke with an accent.
Java zero-day exploit goes mainstream,
100+ sites serve malware Blackhole exploit toolkit adds attack code
that leverages unpatched bugs
By Gregg Keizer
Computerworld - Attackers using two recently-uncovered Java unpatched vulnerabilities, or "zero-days," have quickly expanded their reach by going mainstream, security experts said today.
And on Tuesday, Mozilla, maker of Firefox, joined the chorus of advice that users should disable the current version of Oracle's Java. The company is also ready to automatically block the plug-in from running in its browser, although it has not yet pulled the trigger.
Watch Your Back, Hasbro, 3D-Printed Games Have Arrived
BY JOSEPH FLAHERTY - Wired.com
3D printers are sometimes called Santa Claus machines because, like Santa, they can create anything imaginable. When used to make actual toys and games, this is especially fitting. The team at Ill Gotten Games is doing just that by creating Pocket Tactics, the first open source miniatures game designed to be manufactured on a 3D printer.
Microsoft, Atari Bring Arcade Classics to the Web
By Scott Gilbertson - WebMonkey.com
Microsoft's Internet Explorer team has partnered with Atari to re-imagine classic Atari games for the modern web. That's right, Centipede, Asteroids, Missile Command and half a dozen more all re-written using HTML5 and JavaScript.
If you'd like to play, point your browser to the new Atari Arcade and enjoy the glory of Pong, Super Breakout and the rest of the Atari back catalog.
Atari Arcade - Behind the Scenes
In this video, get a glimpse at some of the work that went behind the scenes in the development of Atari Arcade, brought to you by Internet Explorer, Atari, and GSkinner.com
New Flat Lens Could Revolutionize Cameras as We Know Them
BY JAKOB SCHILLER - Wired.com
Camera lenses might look radically different in a couple years thanks to a new technology developed by a group of physicists at the Harvard School of Engineering and Applied Sciences (SEAS).
Using a very thin wafer of silicon the scientists have created a flat lens that is only 60 nanometers thick and does away with the normal curved glass we're used to seeing on most cameras.
Apple will give you up to $345 for your iPhone
By Salvador Rodriguez - LATimes.com
If you're looking to sell your iPhone in anticipation of the iPhone 5, Apple's Reuse and Recycling Program could give you up to $345 for your device.
The program will take your old iPhone and mail you back a gift card that can be used at an Apple retail or online store. How much credit you get is determined by the model and quality of your device.
If you have a 64-gigabyte iPhone 4S in top-notch condition along with its charger, you could receive a gift card worth $345. If the device has scratches, the credit falls to $295; if it's cracked or has other type of damage, the payback plummets to $50.
Why Are the Big Banks Suddenly Afraid?
By Simon Johnson, Economix.Blogs.NYTimes.com
Top executives from global megabanks are usually very careful about how they defend both the continued existence, at current scale, of their organizations and the implicit subsidies they receive. They are willing to appear on television shows – and did so earlier this summer, pushing back against Sanford I. Weill, the former chief executive of Citigroup, after he said big banks should be broken up.
Typically, however, since the financial crisis of 2008 the heavyweights of the banking industry have stayed relatively silent on the key issue of whether there should be a hard cap on bank size.
This pattern has shifted in recent weeks, with moves on at least three fronts.
'Real' Homeownership Rate at Nearly 50-Year Low
By Peter Coy - BusinessWeek.com
So much for President George W. Bush's "ownership society." The real rate of homeownership—subtracting people who are about to be ejected for not paying their mortgage—has fallen to lows not seen since the mid-1960s, according to a new analysis.
The decline in the Census Bureau's official measure of homeownership is bad enough. It slid to 65 percent this year from 69 percent in 2005 and 2006, at the peak of the housing bubble, when buying a home was universally considered a sensible way to secure one's fortune. But things look even worse when you strip out homeowners whose homes are in foreclosure or who are headed for foreclosure because they are 90 days or more delinquent on mortgage payments.
'The Economy Stole My Retirement' Retirements in Peril for Entrepreneurs in Their 60s and 70s
Who Can't Sell Their Companies
By SARAH E. NEEDLEMAN And EMILY MALTBY - WSJ.com
Danny Sullivan dreams of gardening and spending time with his grandchildren, but that's just a fantasy. Retirement is out of his reach, at least for the foreseeable future.
The 62-year-old founder of a small catering company spends his days helping stock bars with beer and ice, wooing potential new clients and juggling the 20 to 30 different events his firm handles daily.
"I am so tired," he says. "I don't know that I'll ever be able to retire."
Top 3 Small Business Struggles
By Amy Payne - Heritage.org
Small businesses are getting a lot of focus from politicians, because they are a key engine of job creation—which has stalled in the U.S. economy. A Republican National Convention theme of "We Built It" continued the political debate over the economy yesterday.
A survey by the National Federation of Independent Business (NFIB) in July revealed that small businesses' top three concerns were taxes, regulations, and poor sales. A quick look at these top three small business struggles shows they have every reason to be demoralized.
Illinois Credit Rating Cut Over Pensions
Posted by Robert Morley - theTrumpet.com
Standard & Poor's lowered Illinois credit rating over underfunded pensions, theChicago Tribune reported yesterday. The real headline should have been: Illinois and other states are set to see cut after cut until you think the bleeding will go on forever. The Tribune wrote:
Standard & Poor's downgraded the credit of the state of Illinois on Wednesday because of its weak funding levels for pensions, a move that could make it more expensive for the state to borrow money.
S&P lowered its rating on Illinois to A from A-plus and said its outlook is "negative."
Why Aren't Candidates Talking More About Housing?
By: Diana Olick - CNBC.com
There has been plenty of political talk about the economy this week, but precious few words about one of the biggest drags on the economy: housing.
Despite recent signs that the housing market is improving, it is far from healthy.
Home prices are still down 31 percent from their 2006 peak according to the latest S&P/Case-Shiller home price report, and nearly 12 percent of all mortgages are either delinquent or in the foreclosure process, according to the Mortgage Bankers Association.
How Obamacare Robs Medicare and Hurts Seniors
By Amy Payne - Heritage.org
The rhetorical Medicare wars have heated up this week, after President Obama declared in his Saturday radio address that his proposed reforms "won't touch your guaranteed Medicare benefits. Not by a single dime."
This is incorrect. Obamacare cuts $716 billion from Medicare over the next 10 years, according to the Congressional Budget Office (CBO), and uses these "savings" from Medicare to fund other entitlement expansions mandated by Obamacare. Medicare becomes a cash cow for Obamacare, and the Medicare "savings" from payment cuts are not put back into making Medicare solvent. Such massive payment cuts do impact Medicare benefits, as well as seniors' access to those benefits.
Gun ID legislation may trigger exodus
of gunmakers Remington, Colt
By Joshua Rhett Miller - FOXNews.com
Two venerable American gun manufacturers — Remington and Colt — could head for the West their weapons helped win if New York and Connecticut force them to implement microstamping technology.
Microstamping, or ballistic imprinting, is a patented process that uses laser technology to engrave a tiny marking of the make, model and serial number on the tip of a gun's firing pin to allow an imprint of that information on spent cartridge cases. Supporters of the technology say it will be a "game changer," allowing authorities to quickly identify the registered guns used in crimes. Opponents claim the process is costly, unreliable and may ultimately impact the local economies that heavily depend on the gun industry, including Ilion, N.Y., where Remington Arms maintains a factory, and Hartford, Conn., where Colt's manufacturing is headquartered.
other viewpoints... CrossTalk: New World Disorder
What has changed since the end of the Cold War? Does the world today match what was envisioned decades ago by some prominent Western leaders? Have we reached the 'end of history?' Will borders remain untouched as sectarianism and nationalism take root across the world? Or are we living through a paradigm shift, where the status quo is unlikely to prevail? And how painful will this shift be until a new order is established? CrossTalking with George Szamuely, Alan Kuperman and Ryan Mauro.
What do the Russians know that American public doesn't? Russia is disengaging from Syria:
Arms shipments stopped, warships exit Tartus
DEBKAfile
Russian naval vessels have unexpectedly departed the Syrian Mediterranean port of Tartus and Russian arms shipments to Syria have been suddenly discontinued. DEBKAfile's military sources reveal that those and other steps indicate that the Russians are rapidly drawing away from the Syrian arena to avoid getting caught up in the escalating hostilities expected to arise from military intervention by the US, Europe and a number of Arab states. Russian intelligence appears to have decided that this outside intervention is imminent and Moscow looks anxious to keep its distance for now.
UN, Iran leaders duel over nuclear issue
by Staff Writers, Tehran (AFP)
UN chief Ban Ki-moon and Iran's supreme leader, Ayatollah Ali Khamenei, sparred in an unusually frank verbal duel on Wednesday over Tehran's disputed nuclear programme, betraying high tensions on the issue.
Ban told Khamenei and, separately, President Mahmoud Ahmadinejad to take "concrete" steps to fix the worsening international showdown over their atomic activities, according to his spokesman.
But Khamenei, according to his official website, shot back by saying the "defective" United Nations was in thrall to the United States, and accusing the UN nuclear watchdog of "sabotaging" Iran's nuclear progress.
Carrier strike group rushes to PersianGulf
by Staff Writers - Washington (UPI)
The U.S. Navy aircraft carrier USS John C. Stennis is being rushed to the Persian Gulf as tensions between Israel and Iran edge closer to the boiling point.
The Nimitz class carrier, with an air wing of about 90 aircraft, sets sail Monday on an eight-month deployment to the region -- four months ahead of schedule.
In the gulf it will join the USS Enterprise Strike Group, giving the United States a powerful deterrent to any Iranian attack on commercialoil tankers in the Persian Gulf and Strait of Hormuz or a counterpunch to Iranian military action against U.S. military facilities in the region or those of its allies.
TacSat-4 Participates
in US Navy Fleet Experiment Trident Warrior
by Staff Writers, Washington DC (SPX)
U.S. Naval ResearchLaboratory's Tactical Satellite-4 successfully completes three weeks of intense testing, June 28, as part of the Navy's annual Trident Warrior Experiment 2012 (TW12). TacSat-4 is a Navy-led Joint mission that provides Ultra High Frequency (UHF) satellite communications (SATCOM).
Sponsored by Navy Warfare Development Command, Trident Warrior is an annual fleet experiment focused on gaining valuable insights to improve future capabilityinvestments. This year's agenda included at-sea experimentation of critical maritime initiatives, and developing or improving tactics, techniques and procedures to aid maritime forces.
US-China missile race
by Staff Writers, Moscow, Russia (Voice of Russia)
The United States says it's planning to build new missile defence in Asia. White House officials say early warning radar systems could be placed on a remote Japanese island and possibly in the Philippines. They say the proposed systems are in response to the development of new Chinese missiles, which the Pentagon says could be used to target the American Pacific Fleet. The US plans come in the wake of a diplomatic fall-out with Russia over similar systems in Eastern Europe.
VOR's Tom Hedegard spoke to Alexander Neal, an Asia expert at the Royal United Services Institute, and asked him what the US is trying to achieve in the region.
US pushes for a new phase of arms race
by Staff Writers, Moscow, Russia (Voice of Russia)
After Russia refused to support the UN Security Council resolution on Syria the US Congress forbade Pentagon to deal with Russia's arms export monopoly Rosoboronexport until Moscow stops supplying weapons to Damask. Russia was quickly tagged as a country which supplies weapons to evil dictatorial regimes. In reality, however, it's the United States that is the largest supplier of weapons on the global marketplace, including countries with authoritarian rule. Of course, some of the deliveries are made indirectly, through a large network of intermediaries.
Staged crisis leading to suspended elections
could happen on our watch
By Judi McLeod - CanadaFreePress.com
The closer America gets to Election Day, the more some worry about the possibility of there not being one.
Obama is smiling all the way through the polls, and it may not merely be whistling past the cemetery this time.
The fear of Obama suspending elections came long before the presidential election campaign officially began. It was almost one year ago when North CarolinaGovernor Bev Perdue made suspended elections an idea whose time has come.
Clinton staying as far away
from Charlotte as physically possible
Posted By Josh Rogin - TheCable.ForeignPolicy.com
Secretary of State Hillary Clinton, as a sitting administration official, does not have any role at the Democratic National Convention next week in Charlotte. But she seems to gone out of her way to avoid the festivities, as she is traveling this week and next to the Cook Islands, Indonesia, China, Timor-Leste, Brunei, and Russia.
Warm-up act needed a script but crowd loved him Clint Eastwood's rambling RNC speech
Politico.com
TAMPA, Fla. — Clint Eastwood delivered a rambling performance at the Republican National Convention on Thursday night in a speech that included the Hollywood legend speaking to an empty stool and telling an imaginary President Barack Obama "I'm not going to shut up" and calling the president "absolutely crazy."
The Romney campaign defended Eastwood's performance, saying, "His ad-libbing was a break from all the political speeches and the crowd enjoyed it."
Mitt Romney appeals to America's optimism in RNC speech GOP presidential nominee makes his case to the country
BY DAVID LIGHTMAN,
MCCLATCHY NEWS SERVICE - MiamiHerald.com
TAMPA -- Mitt Romney presented the first crucial chapter Thursday of his bid to become the country's 45th president, accepting the Republican nomination and urging the nation to look closely at his résumé, his vision and his remedies for the ailing economy."I wish President Obama had succeeded because I want America to succeed. But his promises gave way to disappointment and division," Romney said. "This isn't something we have to accept. Now is the moment when we can do something. With your help we will do something."
Romney makes appeal
to Americans disillusioned with Obama
By John Whitesides and Steve Holland
TAMPA, Florida | Thu Aug 30, 2012 11:10pm EDT
(Reuters) - Republican Mitt Romney urged voters on Thursday to help him rebuild the U.S. economy and create millions of new jobs, asking them to overcome their disappointment in President Barack Obama and join him in restoring the promise of America.
In a high-stakes speech accepting the Republican presidential nomination, Romney said he would work to unify a divided country that believed Obama's lofty campaign promises but had lost hope they would be fulfilled.
The Election: It's The Food-Stamps, Stupid!
Submitted by Tyler Durden - ZeroHedge.com
In November 2008, President Barack Obama won the popular election for President by 9.5 million votes. A burgeoning financial crisis and weakening economy helped his candidacy at the time, but four years on the sluggish pace of economic recovery is a headwind to his re-election. Consider, for example, that there are currently 12.8 million people unemployed in the U.S., or that an estimated 8 million adults entered the SNAP (Food Stamp) program since November 2008 (total increase in enrollment: 15.6 million). Presidential elections are won in the Electoral College, of course, so in today's note ConvergEx's Nick Colas parses out this employment/food security economic stress for the key "Battleground" states.
Romney: Election about jobs, Obama failures;
will promise to help families
By Stephen Dinan-The Washington Times
TAMPA, Fla. — Mitt Romney will accept the Republican presidential nomination Thursday night, will tell a national audience to take a harder look at the last four years under President Obama, and said he and his fellow Republicans offer voters the chance to make a dramatic course-change.
"I wish President Obama had succeeded because I want America to succeed. But his promises gave way to disappointment and division," Mr. Romney will say, according to excerpts of his remarks provided by his campaign. "This isn't something we have to accept. Now is the moment when we can do something. With your help we will do something."
Voters, Are You Bluffing?
By George Will - PatriotPost.us
WASHINGTON -- Now begins the final phase of this cognitive dissonance campaign. America's 57th presidential election is the first devoted to calling the nation's bluff. When Mitt Romney selected Paul Ryan, Republicans undertook the perilous but commendable project of forcing voters to face the fact that they fervently hold flatly incompatible beliefs.
Twice as many Americans identify themselves as conservative as opposed to liberal. Nov. 6 we will know if they mean it. If they are ideologically conservative but operationally liberal. If they talk like Jeffersonians but want to be governed by Hamiltonians. If their commitment to limited government is rhetorical or actual. If it is, as Daniel Patrick Moynihan suspected, a "civic religion, avowed but not constraining."
Barack Obama, Global Has-Been
[Google the title for FREE Article Pass]
The president would rather be loved than feared. He is neither.
By Bret Stephens - WSJ.com $$
A few days ago there occurred one of those telling little episodes that captures the essence and folly of the Obama administration's approach to foreign policy. The meeting of the Non-Aligned Movement is being hosted this week in Iran, and the administration had urged United Nations Secretary-General Ban Ki-moon not to attend as a signal of displeasure at Tehran's serial violations of U.N. Security Council resolutions.
Of course Mr. Ban is going.
The administration's response to Mr. Ban's decision was "muted," according to the New York Times, evidently out of sympathy for his delicate position: Most U.N. member states are also members of the Non-Aligned Movement, and it's customary for U.N. secretaries-general to attend the meetings. There's also hope Mr. Ban will make a public stink in Iran about its leaders' nuclear bid or their calls to wipe out Israel. And maybe he will.
Dinesh D'Souza Obama 2016 YouTube
Film encourages the audience to consider where our country will be in 2016 if Barack Hussein Obama is re-elected.
"The republican is the only form of government which is not eternally at open or secret war with the rights of mankind." --Thomas Jefferson (1790)
Timed for theatrical release in advance of theRepublican National Convention to nominate the Romney-Ryan ticket, Dinesh D'Souza's much-anticipated film "Obama's America: 2016" is earning great reviews and already ranks among the top-grossing political documentaries of all time. The film encourages the audience to consider where our country will be in 2016 if Barack Hussein Obama is re-elected.
Frankly, it's a great leap of faith to believe there will be an "America" in 2016 if Obama is re-elected -- at least one that we recognize. One need look no further than Obama's America in 2012 to see that most of what was left of our Republican government when he was elected in 2008 has been scheduled for demolition. As I've noted in previous columns,Obama's strategy is to irrevocably shatter free enterprise with a debt bomb shockwave.
How Obama Succeeds By Failing Ryan on the American Tipping Point: it's the socialism, stupid.
By JEFFREY LORD - The American Spectator.org
"Perhaps you and I have lived with this miracle too long to be properly appreciative. Freedom is a fragile thing and is never more than one generation away from extinction. It is not ours by inheritance; it must be fought for and defended constantly by each generation, for it comes only once to a people. Those who have known freedom and then lost it have never known it again." --Ronald Reagan, January 1967
Why did Obama fail?
Or has Obama actually succeeded?
The debt soars to $16 trillion. Millions are out of work to the tune of an 8.3% unemployment rate, with the CBO predicting it will keep on climbing to 9% by 2013 -- now only five short months away. One could go on, yipping and yapping about everything from the price of a gallon of gas (already headed north to four bucks a gallon, itspiked again Wednesday from a nickel to as much as 14 cents in the wake of Hurricane Isaac) to the crony capitalism of Solyndra.
So the question isn't "has Obama failed"? No, the real question is:
Why did Obama fail? And in the world of socialists and progressives, isn't this failure a success?
What Now for Ron Paul Libertarians?
Matt Welch: Ron Paul supporters sidelined at convention as differences with Romney foreign policy are profound
How Europe sees US... The World from Berlin: 'Romney Message Too Closely Tailored to White Men' Wither the Republicans? The party's national convention this week has revealed a GOP that seems unconcerned about alienating minority voters. Despite poor economic data, German commentators on Thursday argue that candidate Mitt Romney will have trouble getting elected as a result.
Spiegel.de
Republican Party faithful have turned out in Tampa this week to cheer on their presidential and vice presidential choices for the Nov. 6 national election. Wisconsin Rep. Paul Ryan made his plea on Wednesday night. When former Massachusetts governor Mitt Romney takes the stage Thursday night he will make his own attempt to win over voters in a nationally televised speech.
The official convention theme is "We Believe in America," and the gathering has taken aim at President Barack Obama's handling of the nation's economy. The pair's fiscally conservative policies call for lowering corporate and personal tax rates, eliminating several tax loopholes and rules out tax increases. They have called for cutting government spending on social transfers and for slimming down government regulation, while maintaining defense spending.
America, the Insecure Hey, America: You're good enough, you're smart enough, and doggone it, people like you. Thoughts from across the pond on the U.S. obsession with exceptionalism.
BY ALEX MASSIE - ForeignPolicy.com
LONDON — We hold these truths to be self-evident: The United States is the world's original and still-greatest political experiment, founded upon a creed of liberty for all in a land of unprecedented, unparalleled opportunity. This land's manifest destiny is to be a shining city on a hill, a light by which the rest of the world may see the glories of a new and better world. If the journey, approved by Providence, has been long and hard, it is all the more noble for being so. This is, was, and always shall be an exceptional nation, the envy and wonder of the world. America is, like, awesome.
Ryan Rocks Republicans He was so good last night [Wednesday]
he'll be an impossible act to follow.
By ROSS KAMINSKY - The American Spectator.org
As Congressman Paul Ryan (R-WI) closed out the second night of the 2012 Republican Convention in the biggest speech of his life, he at first seemed slightly (and understandably) nervous. That lasted about sixty seconds, as the vice-president-in-waiting delivered remarks that became steadily more forceful and confident and left my wife, a relatively new citizen of the United States, saying "this guy should be running for president."
....Ryan's 35-minute remarks, which ended with Republicans rowdily cheering the party's leading "rock star" (in a party demonstrably brimming with young talent), spoke of optimism for the future (calling on the memory of happy warrior Jack Kemp), of the damage to the economy and the fundamental nature of our republic caused by Barack Obama, of entitlement reform, of his family and upbringing, and (briefly) of faith and religion, all while conveying a combination of youth and earnestness that the Obama/Biden team cannot hope to match.
Ryan Pledges GOP Rebirth
By PATRICK O'CONNOR And JOHN D. McKINNON - WSJ.com
TAMPA, Fla.—Rep. Paul Ryan took the national political stage Wednesday as the Republican Party's vice presidential candidate, giving a televised speech that laid out one of the GOP's sharpest cases yet against a second term for President Barack Obama, and for Republicans as the party of small government.
Mr. Ryan's address to the Republican convention was his introduction to a national audience only now beginning to take his measure as one of the GOP's leading figures and the partner of presidential candidate Mitt Romney.
Paul Ryan's Night
By Rich Galen - PatriotPost.us
Fifteen thousand reporters are here all watching the same thing, writing about the same thing, and Tweeting the same thing.
Walking through the huge Tampa Convention Center (where THE Convention is not being held; that is in a nearby building called the Tampa Times Forum) which houses most of those reporters you could see room after room filled with row after row of reporter after reporter trying to tease out the hidden meaning of how long it took for New Jersey Governor Chris Christie to mention Mitt Romney's name in his keynote address on Tuesday night.
I watched Ann Romney's and Governor Christie's speeches from the set of Bloomberg TV a block or so away from the Forum.
An Autumn Abyss?
By Joschka Fischer - Project-Syndicate.org
BERLIN – In the coming months, several serious regional economic and political crises could combine into one mega-watershed, fueling an intense global upheaval. In the course of the summer, the prospect of a perilous fall has become only more likely.
The drums of war are being banged ever more loudly in the Middle East. No one can predict the direction in which Egypt's Sunni Islamist president and parliamentary majority will lead the country. But one thing is clear: the Sunni Islamists are decisively altering the region's politics. This regional re-alignment need not be necessarily anti-Western, but it surely will be if Israel and/or the United States attack Iran militarily.
Don't get Your Hopes up for Jackson Hole
By TJ Kim - PragCap.com
The Federal Reserve's annual symposium at Jackson Hole is only a few days away. Despite some investors' expectation on new stimulus that might be hinted at the meeting, the situation now seems more likely that Chairman Ben Bernanke may not signal or announce any definitive plan. Especially with some signs of a rebound in the economy and thus reducing the urgency of another round of Quantitative Easing, the Fed may take more time to reassess the economy before drawing up any stimulus package.
While it is hard to figure out what will be announced at the symposium, it will be helpful to understand what the focus of discussion was at last month's FOMC meeting.
No surprises likely from Bernanke Bernanke should show some humility Markets await hints on policy moves
from Federal Reserve chairman
By Bob Corker - FT.com
You don't have to watch the morning financial news or read the newspapers for long before realising that the day's market activities will once again be driven by a "will they or won't they" debate over the US Federal Reserve. Almost every day begins and ends with extensive debate on the same questions: what will the Fed do next? Will there be another round of quantitative easing?
This week is yet another example, with global equity and bond markets now not debating macroeconomic fundamentals but instead placing bets on what Ben Bernanke will or won't say in Jackson Hole on Friday. We are getting to the point where this question, and Mr Bernanke's Fed itself, are becoming unhealthy distractions from improving our free market system and engaging in fundamental policy debates.
Gross Says QE3 Likely Even If Bernanke Doesn't Provide Hint
By Cordell Eddings and Trish Regan - Bloomberg.com
Pacific Investment Management Co.'s Bill Gross said the Federal Reserve will add to monetary stimulus even if Chairman Ben S. Bernanke fails to indicate additional measures during a speech in two days.
Policy makers will announce more so-called quantitative easing "relatively soon," Gross, who runs the world's biggest bond fund, said in an interview on Bloomberg Television's "Street Smart" with Trish Regan.
QE3 and the looming currency war Commentary: An unstable situation could worsen
By Michael Casey
NEW YORK (MarketWatch) — First, let's get this straight: The U.S. Federal Reserve's Open Market Committee is composed of some very smart, sensible people.
But...for all the unreasonable accusations that are sometimes leveled at Chairman Ben Bernanke and his colleagues, there is one good reason to complain about the FOMC's detachment from the world. It stems from the fact that the Fed's mandate extends no further than U.S. borders. The committee members are under no legal obligation to consider the impact of their actions on foreign countries. And yet their decisions inevitably have a sweeping, disruptive influence on global money markets and, by extension, on the world economy.
Firestorms & Currency Twisters
BY JIM WILLIE - FinancialSense.com
Begin with a preface of a meaningful event that could change the entire US landscape, a redux of what happened four years ago. Consider the next Wall Street financial firm failure. It is in progress. It is not avoidable. It will have numerous ramifications. It will open the door to account thefts, burial of documents, ransack of undesired leveraged positions, the concealment of wrecked derivatives, and a path toward the merger of surviving (selected core) firms. It will urge an extreme defensive posture. Back in 2008, both Bear Stearns and Lehman Brothers fell. The former because they had too much gold exposure with anti-US$ hedges. The latter because they led in mortgage exposure. Both failures were greatly exploited.
Even talk of a gold standard would boost the price Commentary: Current monetary system is breaking down
By Matthew Lynn
LONDON (MarketWatch) — What would it take to break the gold price out of the $1,600 to $1,700 an ounce range in which it has been trading for the past year? Another massive blast of quantitative easing from the Federal Reserve? A final breakdown of the euro? A war between Israel and Iran?
They are all possibilities, of course. But the most likely candidate is a serious debate about a return to some form of the gold standard.
In the U.S., the Republican Party has already pledged to study restoring the link between the dollar and gold if it wins the upcoming election. In Switzerland there have been parliamentary debates about restoring the link between the Swiss franc and gold.
Profit taking, buying on dips occurring in Gold
ahead of Jackson Hole meet: UBS
NEW YORK (Commodity Online): A mix of profit taking and dip buying are occurring in gold ahead of Federal Reserve Chairman Ben Bernanke's highly anticipated speech at a Jackson Hole, Wyo., symposium Friday, said Union Bank of Switzerland (UBS) in a commodity research note.
Comex December gold ran up to a four-month high of $1,679.30 at the start of the week amid hopes Bernanke will signal more easing, but has consolidated since, trading at $1,665.60—down $4.10 for the day—as of 7:33 a.m. EDT.
Gold ends lower on caution before Bernanke speech
By Claudia Assis and Sara Sjolin, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures ended lower Wednesday as the dollar gained ground and traders seemed to be waiting for a gathering of central bankers to get under way before making any significant moves.
Gold for December delivery fell $6.70, or 0.4%, to $1,663 an ounce on the Comex division of the New York Mercantile Exchange.
At pivotal moment, Bernanke low on economic ammo
By Zachary A. Goldfarb - WashingtonPost.com
This is not the situation Ben S. Bernanke wanted to be in.
When he took the stage for his annual address in Jackson Hole, Wyo., four years ago, the Federal Reserve chairman had a broad arsenal of weapons that he would soon use to rescue the U.S. financial system from collapse.
On Friday, he returns to the yearly economic conference still facing huge economic challenges, but now he's far more constrained by both politics and limitations on what the Fed can do to help the economy.
Treasuries Snap Loss As Gross Says Fed To Implement QE3
By Wes Goodman - Bloomberg.com
Treasuries snapped a loss from yesterday after Pacific Investment Management Co.'s Bill Gross said the Federal Reserve will add to monetary stimulus even if Chairman Ben S. Bernanke doesn't say so in a speech tomorrow.
Bernanke is scheduled to speak as central bank policy makers debate whether to add to their bond purchases under the program of so-called quantitative easing, or QE, to support expansion. Growth is slowing in the U.S., while Europe's economy is contracting. The U.S. is scheduled to sell seven-year debt today, the last of three note sales this week totaling $99 billion.
Is Inflation Returning?
By Martin Feldstein - Project-Syndicate.org
CAMBRIDGE – Inflation is now low in every industrial country, and the combination of high unemployment and slow GDP growth removes the usual sources of upward pressure on prices. Nevertheless, financial investors are increasingly worried that inflation will eventually begin to rise, owing to the large expansion of commercial bank reserves engineered by the United States Federal Reserve and the European Central Bank (ECB). Some investors, at least, remember that rising inflation typically follows monetary expansion, and they fear that this time will be no different.
Is Morgan Stanley on the chopping block? MORGAN STANLEY FACES IMMINENT FAILURE & RUIN,
MAY SEE 1ST PRIVATE STOCK ACCOUNT THEFTS Willie states that Morgan Stanley faces IMMINENT FAILURE & RUIN, that The older employees are selling all of their stock, and that Many workers are making contingency plans for their next positions in another firm.
By Jim Willie - SilverDoctors.com
Begin with a preface to a meaningful event that could change the entire US landscape, a redux of what happened four years ago. Consider the next Wall Street financial firm failure. It is in progress. It is not avoidable. It will have numerous ramifications. It will open the door to account thefts, the burial of documents, the ransack of undesired leveraged positions, the concealment of wrecked derivatives, and a path toward the merger of surviving (selected core) firms. It will urge an extreme defensive posture. Back in 2008, both Bear Stearns and Lehman Brothers fell. The former because they had too much gold exposure with anti-US$ hedges. The latter because they led in mortgage exposure. Both failures were greatly exploited.
Gasoline Prices Fast Approaching New All-Time Highs
By CULLEN ROCHE - PragCap.com
The US consumer just can't catch a break. Despite a stagnant economy gasoline prices continue to approach new highs. The latest national gas price reading of $3.77 is just 8% below the all-time high of $4.11 set in 2008. It seems like every time things start to look better than expected we get the usual suspects coming into play the role of party pooper. And as gas prices approach all-time highs you can be certain that this drain from consumer spending isn't helping. Here's more details from AAA:
The Real Reason Behind Oil Price Rises -
An Interview with James Hamilton
By James Stafford - OilPrice.com
Nowadays the energy picture is confusing at best as the more information we are shown the more blurred our vision seems to become. Mixed messages, poor reporting and a media hungry to sensationalize anything it thinks can grab a headline have led to many wondering what the true energy situation is. We hear numerous reports on how the shale revolution will transform the energy sector, why alternatives are just around the corner, why advances in oilfield extraction techniques and new finds will help to lower oil prices. Yet no sooner have we read these rosy reports than we are bombarded with negative news on the Middle East, on why alternatives will never compete, on peak oil and declining oil production.
Should we run government as a business?
Commentary: When it comes to debt, everyone is guilty
By MarketWatch
LOS ANGELES (MarketWatch) — We often hear that government would be best run the same way as a business, especially in terms of managing money.
Texas businessman Ross Perot made this notion the central theme of his 1992 bid to be U.S. president. He frequently said that America can't keep spending more than it makes, that business doesn't do this. (And he could have possibly won the White House had he not temporarily dropped out of the race without fully explaining why.)
Federal Reserve To Crash Markets Before Launching QE3?
EFTDailyNews.com
Dominique de Kevelioc de Bailleul: Desperate to print Wiemar-style to fight off the most viscous Kondratiev Winter on record, Federal Reserve Chairman Ben Bernanke may not satisfy 'inflation trade' onlookers at the close of his Jackson Hole speech scheduled Friday. He may, instead, merely allow months of anticipatory front-running of stocks do the work of propping up asset prices for him.
And if investors don't get the 'all-systems go' at Jackson Hole, there's always the FOMC meeting of Sept. 12 & 13 to get the good news. That's when market volatility could move off the charts, maybe extreme volatility to the downside, according some Wall Street analysts.
Europe's Necessary Union
By José Manuel Barroso - Project-Syndicate.org
BRUSSELS – The consequences of Europe's debt crisis are all too present throughout much of the European Union, as distressed economies attempt to stabilize and grow at the same time. Notwithstanding the important decisions taken over the last couple of years, the reality is that we need to do more to tackle the challenges facing the eurozone.
Reform and consolidation measures are being implemented across the EU. Joint financial backstops have been put in place. And the European Central Bank has consistently shown that it will stand by the euro. Yet experts and partners often underestimate our determination.
Did China Cause the Financial Crisis?
By CULLEN ROCHE - PragCap.com
Interesting new paper here by Heleen Mees of ERIM. She theorizes that China actually caused the entire financial crisis. It's essentially the global savings glut story which I am not entirely sold on. China accumulates reserves because the USA likes to buy cheaper goods and services. It's not just a desire to save in dollars. It's a demand function as well. China just so happens to be the primary place of cheap production. So they end up with the dollars as a matter of necessity. Anyhow, it's an interesting perspective and I'd be interested in readers views here:
China is Okay
By Stephen S. Roach - Project-Syndicate.org
NEW HAVEN – Concern is growing that China's economy could be headed for a hard landing. The Chinese stock market has fallen 20% over the past year, to levels last seen in 2009. Continued softness in recent data – from purchasing managers' sentiment and industrial output to retail sales and exports – has heightened the anxiety. Long the global economy's most powerful engine, China, many now fear, is running out of fuel.
These worries are overblown. Yes, China's economy has slowed. But the slowdown has been contained, and will likely remain so for the foreseeable future. The case for a soft landing remains solid.
Chinese banks step up lending in the US
By Kandy Wong in New York - FT.com
China's top banks are stepping up their lending activities in the US as large US companies diversify their funding sources and seek to penetrate more deeply into the world's second-largest economy.
Chinese banks' share of US syndicated lending has risen to 6.1 per cent of the total market so far in 2012, up from 5.1 per cent last year, according to data from Dealogic. So far this year, the total value of syndicated loans from Chinese banks into the US has reached $51bn.
Countering the Cutting Frenzy Tax the Rich or Privatize the State?
by SHAMUS COOKE - CounterPunch.org
The Great Recession and its possible continuance has brought the issue of privatization to the forefront of American politics. But most Americans aren't even aware that this debate is happening, because the media and politicians aren't using the word "privatization;" instead less threatening substitutes are used to ram through a corporate agenda that aims to massively transform public resources into corporate profit.
The mass privatization frenzy is the corporate solution to the budget crises occurring on the city, state, and national level — crises caused by the recession that the banks and corporations created themselves, and are now positioning themselves to benefit from again, beyond the infamous bailouts.
U.S. Firms Move Abroad to Cut Taxes Despite '04 Law, Companies Reincorporate Overseas,
Saving Big Sums on Taxes
By JOHN D. MCKINNON And SCOTT THURM - WSJ.com
More big U.S. companies are reincorporating abroad despite a 2004 federal law that sought to curb the practice. One big reason: Taxes.
Companies cite various reasons for moving, including expanding their operations and their geographic reach. But tax bills remain a primary concern. A few cite worries that U.S. taxes will rise in the future, especially if Washington revamps the tax code next year to shrink the federal budget deficit.
SunTrust updates smartphone app to accept mobile deposits
Baltimore Business Journal by Ed Arnold
In keeping step with banking giants Bank of America Corp. and Wells Fargo & Co.,SunTrust Banks Inc. has released an update to its mobile banking smartphone app to include mobile deposits.
Using their smartphone's camera, SunTrust customers can now take a picture of the front and back of their checks to submit them for deposit.
Banks labeled 'slumlords' over foreclosure neglect
By James O'Toole - Money.CNN.com
NEW YORK (CNNMoney) -- U.S. Bank is the country's fifth-largest commercial bank, with 3,000 branches in 25 states. It's also "one of the largest slumlords in the City of Los Angeles," according to the L.A. city attorney's office.
In a complaint filed last month, the office accused U.S. Bank of failing to maintain more than 170 foreclosed properties, blighting neighborhoods, decreasing property values and increasing crime rates.
Citigroup agrees to $590 million subprime settlement
By Danielle Douglas - WashingtonPost.com
Citigroup on Wednesday agreed to pay $590 million to settle a class-action lawsuit brought by investors alleging that the New York bank failed to disclose its exposure to toxic subprime mortgage debt.
In the run-up to the financial crisis, the bank, like many other big financial institutions, either held or sold securities that were essentially giant pools of shoddy mortgages. When waves of struggling homeowners stopped making their monthly payments, these securities exacerbated the mortgage defaults, caused massive losses at big banks and brought on one of the worst financial crises since the Great Depression.
Houston Community Newspapers sold to Nevada company
Houston Business Journal by Olivia Pulsinelli
Houston Community Newspapers has been sold to Nevada-based 1013 Star Communications, an operator of suburban newspapers.
The sale is the final divestiture for ASP Westward, which had owned the Houston group since 2002, HCN reports. Earlier this year, ASP Westward sold newspaper operations in east Texas and suburban Denver.
California Is Suddenly Adding Jobs Faster Than Texas—Why?
By Jordan Weissmann - TheAtlantic.com
After the Great Recession, it became something of a sport among policy nerds to compare the relative merits of Texas' and California's economies. Think Goofus and Gallant, with high-unemployment, big government-loving California as the former, and low-regulation, job-creating Texas as the latter.
But as I noted earlier this month, and Bloomberg reports today, the Golden State now seems to be getting the upper hand:
Rising home values in the face of stagnant incomes – Home prices are rising at a rate three times faster than the CPI. Lowest available inventory in over 30 years.
DoctorHousingBubble.com
For the first time since September of 2010, nearly two years ago, has the Case Shiller 20 City Index realized a year-over-year gain. Does this signify a sustainable turning point for the market? At this point it is too hard to tell for a couple of reasons. The first has to do with the composition of homes being sold but also, at a more profound level,household income has fallen for well over a decade. Much of the sustained gains have come from astoundingly low interest rates offering buyers more leverage, low available inventory for sale, and a continuation of low down payment mortgages. You will notice that none of these reasons include household incomes rising to meet current prices. It really is unsustainable unless incomes can follow in conjunction. This year, according to the Case Shiller Index home values are now up 3.86 percent. Household incomes are not up. So what justifies this significant move? The CPI is up 1.3 percent so why are overall home values moving up at a rate 3 times higher than the overall index? You also see Millennials taking the brunt of the negative equity situation.
Obama Has Stolen $5.3 Trillion From Our Children In Order To Make Himself Look Good
By Michael Snyder - TheEconomicCollapseBlog.com
Barack Obama has destroyed the future of America in order to improve his chances of winning the next election. Under Obama, 5.3 trillion dollars has been ruthlessly stolen from our children and our grandchildren. That money has been used to pump up the debt-fueled false prosperity that we have been experiencing. When the U.S. government borrows money that it does not have from someone else (such as China) and spends that money into the economy it is going to make our economic numbers look better. Even if the government spends that money on incredibly stupid things, it still gets into the hands of average Americans who in turn spend that money on food, gas, clothes, etc. If we were to go back and take that extra 5.3 trillion dollars out of the U.S. economy, I guarantee you that we would be in a rip-roaring depression right now. We would look a lot like Greece at this point. For several years Greece has been raising taxes and cutting government spending in an attempt to balance the budget and these austerity measures have resulted in an unemployment rate of over 23 percent and an economy that has contracted by close to 25 percent. Most Americans don't want to go through pain like that so they are okay with continuing to financially rape our children and our grandchildren.
A Grand Old Growth Party
WSJ.com
Above all, voters want to hear how Republicans will restore prosperity.
Inside the GOP's Tampa convention hall this week, one prominent feature is a debt clock ticking toward $16 trillion. With due respect to that horrifying number, it's the wrong figure to watch. What Mitt Romney and the GOP need above all is a growth clock and a persuasive case for economic revival.
Most Americans have concluded that Obamanomics is a failure, but polls also show that independent voters remain skeptical that either party has an answer to the malaise of the Obama and latter Bush years. This cynicism plays into the hands of President Obama, who is trying to convince Americans that 1.5% growth and 42 months of more than 8% unemployment is the best we could have expected.
The Last Gasps of the Ron Paul Movement And how the GOP's new rules are meant to make sure
no one rises to replace him.
By David Weigel - Slate.com
TAMPA – Sen. Rand Paul was trapped in a corner. It'd been like this all afternoon. He'd been walking the floor of the Tampa Bay Times Forum, hounded by reporters, having the same conversation with every delegate loyal to his father's campaign as bulky cameras nosed in. They were diehards, angry that a quick vote on the Republican National Convention platform had affirmed a rule that blocked some of their fellow delegates. David Jaques, an Oregon "Ron Paul follower for 20-plus years" told the senator that he still wanted to put the candidate's name into nomination. The senator kept telling him not to.
"It does break my heart," he said. "But we fight on. We won't stop. We've just got to follow the rules."
On Mitt Romney, Bain Capital and Private Equity
By Matt Taibbi - RollingStone.com
So our new magazine piece, Greed and Debt, about Mitt Romney's past with Bain and the use of debt to finance takeovers, is online, and already I'm getting some questions that I am anxious to answer. There's a subtle point about the private equity business that I may not have made clear enough in the piece.
One emailer writes: "You've completely misunderstood what private equity does and ignored the many success stories in the industry. There is a reason why many of PE's biggest investors are unions and pension funds . . . who have benefitted more than once from private equity deals."
Rand Paul:
'Whole damn' healthcare law is 'still unconstitutional'
By Ramsey Cox - TheHill.com
Sen. Rand Paul (R-Ky.) declared President Obama's healthcare law "still unconstitutional" in a red-hot address Wednesday night at the Republican National Committee.
The Tea Party favorite told the convention crowd the Supreme Court was wrong when it ruled this summer that "ObamaCare" is permissible under Congress's taxing powers.
"I think if James Madison, himself — the father of the Constitution — were here today he would agree with me: the whole damn thing is still unconstitutional!
Ryan to vow health care repeal fight just beginning
By Stephen Dinan-The Washington Times
TAMPA, Fla. — Paul Ryan will accept Republicans' vice presidential nomination Wednesday night saying this election marks a new battle in the fight to halt President Obama's health care law, according to excerpts of his remarks provided by Mitt Romney's campaign.
"The president has declared that the debate over government-controlled health care is over. That will come as news to the millions of Americans who will elect Mitt Romney so we can repeal Obamacare," Mr. Ryan will tell the thousands of delegates awaiting the speech by the author of congressional Republicans' budget plan, whom Mr. Romney elevated to be his running mate.
Two-fifths of all Americans are middle-agers
The Business Journals by G. Scott Thomas
Middle-agers -- people between 35 and 64 years old -- make up nearly 40 percent of the nation's population.
The most recent federal census counted 63.78 million people within the 35-49 age group, accounting for 20.7 percent of all Americans. Another 58.78 million (19.0 percent) were in the 50-64 bracket.
That adds up to 122.56 million middle-agers, constituting 39.7 percent of America's total of 308.75 million residents.
Half of Americans die with almost no money
By Andrea Coombes
SAN FRANCISCO (MarketWatch)—Almost half of U.S. retirees die with savings of $10,000 or less, but that grim finding doesn't fully describe the variability and uncertainty that characterize retirement in America, according to a recent study.
While some retirees struggle profoundly, living at or below the poverty line, others enjoy wealth and health—in fact, the two are strongly linked—while still others have little in savings but enjoy a decent income, according to the report, based on a survey that tracked retirees from 1993 through 2008.
The Mega-Rich and the "Useless Eaters" America's Descent Into Poverty
by PAUL CRAIG ROBERTS - CounterPunch.org
The United States has collapsed economically, socially, politically, legally, constitutionally, environmentally, and morally. The country that exists today is not even a shell of the country into which I was born. In this article I will deal with America's economic collapse. In subsequent articles, i will deal with other aspects of American collapse.
Economically, America has descended into poverty. As Peter Edelman says, "Low-wage work is pandemic." Today in "freedom and democracy" America, "the world's only superpower," one fourth of the work force is employed in jobs that pay less than $22,000, the poverty line for a family of four. Some of these lowly-paid persons are young college graduates, burdened by education loans, who share housing with three or four others in the same desperate situation. Other of these persons are single parents only one medical problem or lost job away from homelessness.
GM Temporarily Halts Volt Production over Low Sales
By Charles Kennedy - OilPrice.com
US automaker General Motors Co. has announced it will halt production of the Chevrolet Volt electric car for four weeks, citing the car's failure to meet targeted sales projections, according to Bloomberg news.
GM sold 10,666 Volts in the US in July. Global sales were targeted at 60,000 units, with 45,000 on the US market. Sales for 2011 were also under target, and even though an investigation into vehicle safety concluded that the Volt did not pose a fire risk, the congressional hearings on the issue led to a slow-down in sales.
Behind the New View of Globalization
By EDWARD ALDEN - NYTimes.com
For decades, economists resisted the conclusion that trade – for all of its many benefits — has also played a significant role in job loss and the stagnation of middle-class incomes in the United States. As recently as 2008, for instance, Robert Lawrence of Harvard, one of the country's most respected trade experts, concluded that trade explained only a small share of growing income inequality and labor market displacement in the United States.
Rather than focusing on trade, economists argued that other factors – especially "skill-biased technical change," technological innovation that puts an added premium on skilled workers – played the biggest role in holding down middle-class wages. But now economists are beginning to change their minds. Responding to The Times's recent survey about the causes of income stagnation, many top economists have cited globalization as a leading cause.
Why Does The U.S. Government
Treat Military Veterans Like Human Garbage?
By Michael Snyder - EndOfTheAmericanDream.com
The way that the U.S. government treats military veterans is absolutely disgraceful. Men and women that have given everything for this nation are literally being treated like human garbage by their own government. After watching how vets are treated, it is absolutely amazing that anyone is still volunteering to be a part of the military. We pay those in the military like crap, we keep sending our best soldiers back to Afghanistan and Iraq again and again, we don't equip them properly, military suicides are at a record pace, hundreds of thousands of applications for veteran benefits are hopelessly backlogged, homelessness and unemployment among vets is much higher than for the general population, the condition of most VA hospitals is an absolute disgrace, and to top everything off now the Obama administration has started labeling military veterans as "potential terrorists". What you are about to read should make you very angry. The abuse, neglect and outright disrespect that military vets receive from their own government is absolutely shocking. We owe these men and women a great debt for the service that they have performed for our nation, but instead the federal government kicks them to the curb and treats them with no honor whatsoever. The way a nation treats military vets says a lot about the character of that nation, and right now the way that America treats veterans says that we have the character of a steaming pile of manure.
Syrian Conflict Not Just Battle Against Assad
By Steve Clemons - TheAtlantic.com
The New Yorker has just published a gripping, must read piece for those following the horrible convulsions inside Syria titled "The War Within" by Jon Lee Anderson on the diverse array of bosses, ideologues, thugs and strategists animating the Syrian opposition today.
I highly recommend it -- and think that his characterization of the conflict as now indisputably a civil war is sobering, particularly for those advocating deep intervention by the US and Europe:
Syria: The Kurdish Wild Card
By Reese Erlich - Truthdig.com
The apartment reminds me of a '60s-era crash pad. Syrian Kurds in their 20s sprawl on every available bed, couch and sleeping mat. Posters line the walls extolling Kurdish martyrs who fought Bashar al-Assad.
Fighters, smugglers, medics and demonstration organizers who have fled Syria stay here in Antakya, near the Syrian border. They reflect different political viewpoints but are united in opposition to the Syrian regime.
A CounterPunch Special Report on How Democrats Have Distorted
the True History FDR's Signature Program The New Deal Illusion
by GABRIEL KOLKO - CounterPunch.org
What was the New Deal of the 1930s? There are so many myths surrounding it, and to a large extent the Democratic Party's credibility today is based on the assumption they were fundamental social innovators, progressive if you will, during the New Deal.
But the 1920s and 1930 was a very complex period and are best treated as one unified era because the administration of Herbert Hoover, the much-reviled president during the Great Depression that began in 1929 and lasted well into the 1930s, was also a part of the American "Progressive" tradition. As I have argued elsewhere, American "progressivism" was a part of a big business effort to attain protection from the unpredictability of too much competition.
Romney pledges he will return US military resolve
in speech to veterans
By Justin Sink - TheHill.com
On the evening of the biggest day in his political career, Mitt Romney previewed GOP convention speeches focused on the Republican plans for defense and foreign policy.
Romney pledged to return "confidence in our cause, clarity in our purpose, [and] resolve in our might" to the American military in a Wednesday address to the American Legion in Indianapolis.
Romney vows to reverse defense cuts, improve VA
By Seth McLaughlin-The Washington Times
INDIANAPOLIS — Mitt Romney, speaking at the American Legion's nation convention, vowed to get veterans out of the unemployment lines and to reverse the defense cuts triggered by the ongoing spending standoff on Capitol Hill.
The pledge came with just a day to go before Mr. Romney accepts the Republican nominate for president and is part of the GOPs effort to blame Mr. Obama for the nation's slow economic recovery and the trillion dollars in defense cuts that came out of Congress last year.
Ryan to Pledge 'Responsibility' in Convention Speech
By COREY BOLES - WSJ.com
TAMPA, Fla.—Vice-presidential candidate Paul Ryan will pledge to the gathered Republican faithful here that an administration led by Mitt Romney and himself will solve the nation's economic problems, warning that the country doesn't have much time to act to tackle its fiscal challenges, according to excerpts released by the Romney campaign.
"So here is our pledge," he will say according to the excerpts. "We will not duck the tough issues—we will lead. We will not spend four years blaming others—we will take responsibility."
Ryan's speech: After four years of 'runaround,'
US needs turnaround
By Russell Berman - TheHill.com
Republican vice presidential nominee Paul Ryan will cast Mitt Romney as the man who can turn around the country after four years of a "run-around" by President Obama in his Wednesday night speech acceptance speech.
In an address that his advisers say will be heavy on optimism, Ryan will present the nation's challenge as a choice between an Obama administration that has avoided hard choices and a Romney ticket that will meet them head on.
Gold Prices Going Up Regardless of Jackson Hole Outcome
BY DIANE ALTER, Contributing Writer, Money Morning
Investors want to know if this week's Jackson Hole, WY meeting of central bankers will result in further stimulus measures and a rally in gold prices - but they don't have to wait to know gold is headed higher in 2012.
Gold fought back from its Tuesday morning low of $1,659.10 an ounce after a read on consumer confidence showed sentiment dropped in August to its lowest level in nine months. Americans have become increasingly worried about their employment scenarios and the overall outlook on the sluggish U.S. economy.
Gold: First Mover Advantage
BY FRANK HOLMES - FinancialSense.com
In the Investor Alert, our investment team shares charts and data that we believe provide readers with a first mover advantage. While markets don't always move like we anticipate, recognizing historical trends can provide an edge if you act quickly.
This week, gold bugs were rewarded with the long-awaited positive momentum in the yellow metal, and on Friday, bullion rose to about $1,670. After falling below the 200-day moving average, gold had been stuck in quicksand for several months. With the jumps in the price this week, bullion swiftly rose above this critically important long-term moving average.
Gold to focus on upcoming Bernanke speech
NEW YORK (Commodity Online): Much of the gold market's focus remains on Federal Reserve Chairman Ben Bernanke's speech in Jackson Hole, Wyo., Friday, with the metal running up over the last week on hopes for more quantitative easing.
"Ultimately, we suspect that the Fed chairman will give the gold bugs what they want to hear, namely, a signal that an imminent ease should be expected," said Edward Meir, commodities consultant with INTL FCStone.
Bernanke: To Print or Not to Print…?
BY AXEL G MERK - FinancialSense.com
To print or not to print? Odds are that Fed Chairman Bernanke has been contemplating this question while drafting his upcoming Jackson Hole speech. The one good thing about policy makers worldwide is that they may be fairly predictable. As such, we present our crystal ball as to what the Fed might be up to next, and what the implications may be for the U.S. dollar and gold.
Is the U.S. Headed for a Double-Dip Recession? The economy may well be able to continue growing and avoid another slump, but the recovery is unlikely to gain much momentum in 2013.
By MICHAEL SIVY - Business.Time.com
In addition to a host of warnings, last Wednesday's Congressional Budget Office report did contain a little bit of good news. The economy will grow slightly faster in the second half of 2012 than in the first half, and inflation will stay extremely low, according to projections in the CBO's Update to the Budget and Economic Outlook. The bad news is that unemployment will probably remain above 8%. The worse news is that next year the U.S. faces continued high unemployment, below-average growth and the risk of a double-dip recession.
Central Banks Digging a Deeper Hole
BY DETLEV S SCHLICHTER - FinancialSense.com
....Last month we entered the sixth year of this crisis, although parts of the media seem determined to continue calling it a 'recovery'. Wishful thinking. We have been in continuous crisis for half a decade. Doses of Valium and Prozac – called QE among central bankers – have calmed nerves occasionally and given the false impression of healing.
Weak Two Year Auction May Be Jackson Hole Harbinger
Submitted by Tyler Durden - ZeroHedge.com
Moments ago the US Treasury auctioned off the latest monthly batch of 2 Year bonds, this time $35 billion, or toward the higher end of the issuance range, which was a bit of a dud. Pricing at 0.273%, this was a brisk move from July's record low 0.22%, a weakness which was substantiated by the expected pricing of 0.266% even though the When Issued traded at 0.275% coming into the auction, so technically there was no tail. That said, a very modest 9.01% was allotted at the high yield, implying the bulk of the action in the Dutch Auction was below the closing yield.
Boston Fed again sought discount rate cut,
Kansas City Fed a hike
Reporting By Alister Bull; Editing by Neil Stempleman
(Reuters) - Directors at the Kansas City Federal Reserve Bank again backed a quarter point hike in the discount rate to 1 percent while Boston Fed directors sought a cut to 0.5 percent, minutes of meetings by the U.S. central bank's board showed on Monday.
Further Fed easing not "predestined": Fisher
By Ann Saphir
Tue Aug 28, 2012 1:24pm EDT
(Reuters) - Policymakers at the Federal Reserve continue to weigh options on monetary policy, and have not agreed at this point to unleash a new round of stimulus, a top Fed official opposed to more monetary easing said on Tuesday.
"In terms of further easing, nothing has been decided," Dallas Federal Reserve Bank President Richard Fisher told Reuters in a phone interview. "Nothing is predestined."
Is There Going To Be A Stock Market Crash In The Fall?
By Michael Snyder - TheEconomicCollapseBlog.com
Is the stock market going to crash by the end of this year? Are we on the verge of major financial chaos on a global scale? Well, this is the time of the year when investors start getting nervous. We all remember what happened during the fall of 1929, the fall of 1987 and the fall of 2008. However, it is important to keep in mind that we do not see a stock market crash in the fall of every year. Some years the stock market cruises through the months of September, October, November and December without any problems whatsoever. But this year conditions certainly seem to be right for a "perfect storm" to develop. Technical indicators are screaming that a stock market decline is imminent and sources in the financial industry all over the world are warning that a massive crisis is on the way. In fact, the Telegraph ran a story with the following shocking headline the other day: "Market crash 'could hit within weeks', warn bankers". What you are about to read should alarm you.
Why Is the UN Installing
Mutual Credit/Pure Fiat Systems Around the World?
by Staff Report - TheDailyBell.com
To make serious commitments to restructure the global financial architecture based on principles of equity, transparency, accountability and democracy, and to balance, with the participation of civil society organizations, the monetary means to favour human endeavour and ecology, such as an alternative time-based currency. To give particular attention to eradication of unequal taxation, tax havens, and money-laundering operations, and to impose new forms of taxation, such as the Tobin tax, and regional and national capital controls. To direct the international financial institutions to eliminate the negative conditionalities of structural adjustment programmes. – UN Millennium Goals.
Judgment Day For The Euro And What's At Stake
Submitted by Tyler Durden - ZeroHedge.com
Europe and the world are eagerly awaiting the decision of Germany's Constitutional Court on September 12 regarding the European Stability Mechanism (ESM), the proposed permanent successor to the eurozone's current emergency lender, the European Financial Stability Mechanism. The Court must rule on German plaintiffs' claim that legislation to establish the ESM would violate Germany's Grundgesetz (Basic Law). Nobody knows how the Constitutional Court will rule on these objections. It is good that the Court's decisions cannot be forecast, and even better that the Court cannot be lobbied or petitioned. The European Union can be based only on the rule of law. If those in power can break its rules on a case-by-case basis, the EU will never develop into the stable construct that is a prerequisite for peace and prosperity.
European Bank Run Watch: Swiss Edition
by Reggie Middleton - ZeroHedge.com
.... A reader has convinced me to consult with him on a specific situation, regarding overseas monies and the (lack of) safety of those funds, which prompted me to dig up the Sovereign Contagion Model that we developed in 2010. In a nutshell, the Swiss banking industry was built upon impenetrable bank privacy for high net worth clients. Once the US decided it needed to boost its tax revenues during hard times, it literally collapse the Swiss hegemony in secret banking and left that banking industry to compete in actual banking versus asset concealment. This left Swiss banks naked, for they don't appear to me to truly be able to compete aggressively and successfully in other areas.
Truths behind global debt crisis with Max Keiser
In this edition of the show Max interviews Steve Keen from Debtdeflation.com. It has been five years since global debt crisis began. The debt is now so great that it can no longer be hidden. Max discusses the issue with Steve to see what triggered the current debt crisis, what the response to it was and where we stand now. Steve also comments on the latest global debt crisis and banker's role in the current situation.Steve Keen is a professor in economics and finance at the University of Western Sydney and the author of Debunking Economics.
Deposit flight from Spanish banks smashes record in July Spain has suffered the worst haemorrhaging of bank deposits since the launch of the euro, losing funds equal to 7pc of GDP in a single month.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread.
It is unclear how much of the deposit loss is capital flight, either to German banks or other safe-haven assets such as London property. The Bank of Spain said the fall is distorted by the July effect of tax payments and by the expiry of securitised funds.
Brain-dead politics assures chaos till 2016 Commentary: No matter who wins, irrationality will rule markets
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch) — "Liberals and conservatives do not just see things differently. They are different, in their personalities, even their unconscious reactions to the world around them," warns senior editor Emily Laber-Warren in Scientific American Mind, one of the more fascinating reports on behavioral-science research on the political brain.
Yes, conservative or liberal, Republican or Democrat, you can tell them apart from their DNA, brain scans, behavioral patterns ... seriously, guys like Eastwood, Trump and Romney don't just "see" the world differently than Spielberg, Soros and Obama ... they are very different human beings from the outset. Yes, they see different, but they also think, decide, behave, vote and invest different.
$16,OOO,OOO,OOO,OOOBAMA!
Submitted by Tyler Durden - ZeroHedge.com
November 16, 2011 was a historic date: that's when the US officially surpassed $15 trillion in debt for the first time since World War 2. We celebrated it by cheering $15,OOO,OOO,OOO,OOOBAMA. Today, August 28, 2012, is when we can unofficially celebrate again, because 286 days after the last major milestone was surpassed with disturbing ease, total US debt following today's $35 billion auction of 2 Year bonds is, well, in a word: $16,OOO,OOO,OOO,OOOBAMA!
You Are Probably Worse Off Than You Were Four Years Ago
Timothy Noah - TNR.com
In March, the Berkeley economist Emmanuel Saez shocked a lot of people by calculating that during the first year of the recovery from the 2007-2009 recession, incomes for the top one percent grew by 11.6 percent while incomes for the bottom 99 percent grew a mere 0.2 percent. (All figures here are in "real dollars," i.e., they discount for inflation.) Granted, the one percent had taken it on the chin during the recession; from 2007 to 2009, incomes had fallen twice as fast for the one percent (36.3 percent) as for the average family (17.4 percent). The rich always lose big in recessions, because so much of their income comes from capital gains. (Indeed, the one percent took an even bigger share of the nation's income losses between 2000 and 2002, which included the "tech bubble" recession of 2001.) But Saez's calculations showed that the one percent had come roaring back. In 2010, fully 93 percent of the recovery ended up in the pockets of the one percent. One year later, the bottom 99 percent were marching in the streets.
LINDSEY WILLIAMS-AUG-UPDATES-
OVERTHROW OF NATIONS AND CURRENCIES
Lindsey Williams John McGowan Presents former Alaskan Oil Pipeline chaplain Lindsey Williams. Mr. Williams shares the latest info on the upcoming bank holiday, the coming dollar devaluation, the middle east wars and oil prices.
The New Endangered Species:
Liquidity & Reliable Income Streams Prepare for a shift in what 'value' means
By Charles Hugh Smith - PeakProsperity.com
The causal relationship between scarcity, demand, and price is intuitive. Whatever is scarce and in demand will rise in price; whatever is abundant and in low demand will decline in price to its cost basis.
The corollary is somewhat less intuitive, but still solidly sensible: the cure for high prices is high prices,meaning that as the price of a commodity or service reaches a threshold of affordability/pain, suppliers and consumers will seek out alternatives or modify their behaviors to lower consumption.
The Mean Economy: A battered American Dream For housing industry, a fast fall and a slow rebound
By Patrice Hill-The Washington Times
DOWNINGTOWN, Pa. — Joseph Carr and his family know the ups and downs of the housing market well. They've lived it for the past five years.
First, there was the frenzy of developers building new homes and properties in the mid-2000s, when seemingly everyone and his brother was buying houses and trying to flip them for a profit.
"The housing market was booming. There was all kinds of work," recalled Mr. Carr, 41, a longtime plumber and pipefitter. "But it was crazy. I knew something had to give."
What's really wrong with our economy Commentary: Politics lies at heart of problem
By Irwin Kellner, MarketWatch
PORT WASHINGTON, N.Y. (MarketWatch) — Before you can fix something, you have to know what's wrong.
Judging by all the attention being paid to utterances by central bankers these days, you would think that monetary policy is the key to fixing our economy. The stock market jumps on days when there's the slightest hint of ease; it falls when these hopes are dashed.
To ease or not to ease makes for good headlines, but it is totally irrelevant to what ails us. You see, interest rates are not the problem; they're about as low as they can go.
The Untouchable Economy:
Why Americans Are Turning Against 'Stuff' Young people are thinking entrepreneurially, viewing themselves as microbusinesses operating in a highly uncertain economic environment
By Michael Mandel - TheAtlantic.com
Millennials are shifting from tangibles (cars and homes) to intangibles (education and access to data), but they are not alone. In today's data-driven economy, the business sector is moving along the same tangible-to-intangible path as the Millennials, perhaps at an even faster pace. Business spending on nonresidential structures, other than mining-related, is roughly 30% below the 2007 pre-recession highs, while investment in software is up almost 20% over the same period.
Risky Business Can the insurance market survive the biggest risk factor of all -- interference from politicians?
By THOMAS SOWELL - Spectator.org
Insurance is all about risk. Yet neither insurance companies nor their policy-holders can do anything about one of the biggest risks -- namely, interference by politicians, to turn insurance into something other than a device to deal with risk.
By passing laws to force insurance companies to cover things that have nothing to do with risk, politicians force up the cost of insurance.
Networked Energy: Transforming the U.S. Electrical Grid
By Bracken Hendricks and Adam James - OilPrice.com
Constructive national debate on energy policy in the United States has ground to a standstill despite broad political and economic consensus on the urgency of energy innovation. The American people are largely agreed on our goals, with deep bipartisan public consensus on the benefits of an energy strategy that promotes traditional energy resources alongside growing mainstream adoption of renewable energy, smarter grid networks, and energy efficiency. Yet the debate about the policy mechanisms required for reaching these consensus goals remains hotly contested.
Feinstein urges Obama to issue cybersecurity executive order
By Jennifer Martinez - TheHill.com
Senate Intelligence Chairwoman Dianne Feinstein (D-Calif.) on Tuesday urged President Obama to issue an executive order "or take other appropriate action" that would boost the cybersecurity of the nation's critical infrastructure.
In a letter sent to the president on Tuesday, Feinstein voiced skepticism that Congress would pass cybersecurity legislation this year after a sweeping bill she co-sponsored with Sen. Joe Lieberman (I-Conn.) was blocked by Republicans earlier this month. Without a compromise on legislation in sight, Feinstein urged Obama to use his authority to issue an executive order that would establish cybersecurity standards and incentives for critical infrastructure operators to better secure their computer systems and networks.
We Don't Need No Stinking Warrant:
The Disturbing, Unchecked Rise of the Administrative Subpoena
BY DAVID KRAVETS - Wired.com
When Golden Valley Electric Association of rural Alaska got an administrative subpoena from the Drug Enforcement Administration in December 2010 seeking electricity bill information on three customers, the company did what it usually does with subpoenas — it ignored them.
That's the association's customer privacy policy, because administrative subpoenas aren't approved by a judge.
But by law, utilities must hand over customer records — which include any billing and payment information, phone numbers and power consumption data — to the DEA without court warrants if drug agents believe the data is "relevant" to an investigation. So the utility eventually complied, after losing a legal fight earlier this month.
Meet the administrative subpoena (.pdf):
FCC eyes tax on Internet service
By Brendan Sasso - TheHill.com
The Federal Communications Commission is eyeing a proposal to tax broadband Internet service.
The move would funnel money to the Connect America Fund, a subsidy the agency created last year to expand Internet access.
The FCC issued a request for comments on the proposal in April. Dozens of companies and trade associations have weighed in, but the issue has largely flown under the public's radar.
The Self-Service Airport Forget Kiosks, Now Airlines Want Fliers to Tag Luggage,
Board on Their Own
By JACK NICAS And DANIEL MICHAELS - WSJ.com
LAS VEGAS—Airlines are laying the groundwork for the next big step in the increasingly automated airport experience: a trip from the curb to the plane without interacting with a single airline employee.
For years, travelers have been checking in online or at airport kiosks, and more recently, airlines have converted paper boarding passes into electronic ones. Now carriers are turning to technology that enables travelers to check their own bags and scan those boarding passes—but not always without snags.
Radioactive Fish off Fukushima Coast
By Joao Peixe - OilPrice.com
A short 20 kilometers off the coast of the Fukushima nuclear plant, Japan's electricity utility has discovered fish containing a level of radiation unsafe for consumption, Japanese news agencies reported.
Record-high levels of radioactive cesium were found in fish tested from off the coast of the Fukushima Dai-Ichi nuclear plant. Scientists found 25,800 bequerels per kilogram of cesium 134 and cesium 137 in the fish.
"Everybody's going to war but we don't know what we are fighting for." – Nerina Pallot, from "Everybody's Gone to War"
All sides in the coming conflict – except for the civilian populations and the soldiers maimed and killed – believe they will benefit from a limited war in the Middle East if everything goes according to plan. However, nothing ever goes according to plan in wars and this is the problem the world will face. Prolonged recession or depression, wealth and benefit confiscation throughout the EU, US and other Western democraciesand the risk of a Middle East conflict spreading around the world is our fear. Who is guaranteed to win regardless of the outcome of the war and whether it can be contained? The Anglo-American financial elites and the bankers always win every conflict regardless of the military outcome. This is the history of the 20th century and we see no reason that will change now.
Bibi's Secret War Plan
by Richard Silverstein - Antiwar.com
In the past few days, I received an Israeli briefing document outlining Israel's war plans against Iran. The document was passed to me by a high-level Israeli source who received it from an IDF officer. My source, in fact, wrote to me that normally he would not leak this sort of document, but "These are not normal times. I'm afraid Bibi and Barak are dead serious."
The reason the source leaked it is to expose the arguments and plans advanced by the Bibi-Barak two-headed warrior. Neither the IDF leaker, my source, nor virtually any senior military or intelligence officer wants this war. While whoever wrote this briefing paper had use of IDF and intelligence data, I don't believe the IDF wrote it. It feels more likely it came from the shop of National Security Adviser Yaakov Amidror, a former general, settler true believer, and Bibi confidant. It could also have been produced by Defense Minister Barak, another war booster.
Interview Judge Napolitano on the 2012 Election
Those of us who really yearn for a return to first principles, the natural law, the Constitution, a government that only has powers that we have consented it may have... are frustrated by the choice between Barack Obama and Mitt Romney," says Judge Andrew Napolitano, author of the upcoming book "Theodore and Woodrow: How Two American Presidents Destroyed Your Constitutional Freedoms," Fox Business contributor, and former host of "Freedom Watch."
Reason Magazine's Matt Welch sat down with Napolitano at FreedomFest 2012 and discussed the ramifications of the Supreme Court's ruling on the individual mandate and whether or not there's a substantive difference between Barack Obama and Mitt Romney from a libertarian perspective.
Thank Lincoln for self-serving law of war... The Lincoln Laws Should we thank the Great Emancipator
for codifying the law of war—or curse him?
By Eric Posner - Slate.com
In 1861, the Southern states seceded from the Union. Lincoln and other Northern leaders saw secession as treason and the South's leaders and soldiers as criminals who should be caught, tried, and hanged. At the same time, to prevent Britain and other foreign countries from trading with the South, Lincoln declared a blockade, which, under the law of war, entitled the U.S. Navy to seize foreign vessels that tried to trade with the South. However, the law of war presumes a conflict between two states. If the law of war applied to the conflict, then Southerners could not be criminals; they were enemy soldiers of a foreign state and thus could be detained for the duration of hostilities but not tried or executed.
A big wind blows through Tampa
By Wesley Pruden-The Washington Times
Now is the time for every good man to come to the aid of his party, or at least to come in out of the rain. The only wind will be from the podium, since the mighty hurricane that terrified the Republican National Convention is tracking 350 miles west of Tampa, Fla. Only the prospect of getting wet is exciting.
And a good thing, too, since nominating conventions have long since passed their sell-by date. Mitt Romney wants to use the noise, synthetic excitement and manufactured buzz to give him the bounce that conventions have given nominees of the past.
The Deception at the Heart
of the Upcoming US Presidential Election
by Staff Report - TheDailyBell.com
....Free Market Analysis: It is almost time for the US presidential election. Let the lying begin. The biggest lie of all – an elite dominant social theme – is that Romney's running mate, Paul Ryan, is some sort of small-government budget cutter, and that Romney now shares that view.
But to accept Ryan's role, you have to accept the larger nonsense about this being a "generational" election – one defining America's aggregate "soul." To believe this, of course, one has to believe that modern US presidential elections actually bring change. This is hard to fathom. What's the difference between George W. Bush and Barack Obama? Not much, we'd suggest.
Meaningless Words in Politics
by Ron Paul - TheDailyBell.com
As we enter the fall political season, we will hear a great deal of rhetoric from both major political parties and their many candidates for office. It's important for us to remember, however, that words can be made meaningless by misuse or overuse. And when we as citizens allow politicians to obscure the truth by distorting words, we diminish ourselves and our nation.
For example, we've all heard politicians use the words "democracy" and "freedom" countless times. They are used interchangeably in modern political discourse, yet their true meanings are very different. They have become what George Orwell termed "meaningless words." Words like "freedom," "democracy," and "justice," Orwell explained, have been abused for so l?ong that their original meanings have been eviscerated. In Orwell's view, such words were "often used in a consciously dishonest way."
Ron Paul, Republican problem child
Posted by Chris Cillizza - WashingtonPost.com
TAMPA — Mitt Romney — and the broader Republican party (still) have a Ron Paul problem.
That's nothing new. After all, the prospect of what the Texas Republican — and his fervent supporters — would do at the Republican National Convention has long been an issue for the presidential nominee and a party establishment that wants Romney's nomination to proceed as smoothly as possible. (Way back in January we wrote that Paul was the most dangerous man in the Republican party.)
But the lingering divide between Romney and Paul supporters broke into open display on the convention floor Tuesday afternoon in the moments before the formal program for the day began.
In Defense of Liberty Extremism
by James E. Miller - Mises.ca
It's a safe statement to make that when Mitt Romney is finally crowned the GOP nominee for president during the Republican National Convention, any vestige of liberty will be firmly wiped away from the ballot box come this November. For those who have followed his campaign in the United States, Congressman Ron Paul has been swindled out of the nomination through various underhanded tricks at state conventions. The explanation is straightforward: Paul's views are not comfortable within the Republican Party establishment. Today's GOP is a party of banker interests, imperialism, and clandestine state empowerment while claiming to represent small, limited government. Romney embraces this platform while Paul's decades-long voting record stands in opposition.
Ron Paul and the Future
by Lew Rockwell - TheDailyBell.com
One of the most thrilling memories of the 2012 campaign was the sight of those huge crowds who came out to see Ron. His competitors, meanwhile, couldn't fill half a Starbucks. When I worked as Ron's chief of staff in the late 1970s and early 1980s, I could only dream of such a day.
Now, what was it that attracted all these people to Ron Paul? He didn't offer his followers a spot on the federal gravy train. He didn't pass some phony bill. In fact, he didn't do any of the things we associate with politicians. What his supporters love about him has nothing to do with politics at all.
Ron is the anti-politician. He tells unfashionable truths, educates rather than flatters the public and stands up for principle even when the whole world is arrayed against him.
Romney's Big Challenge:
Win White-Collar Suburban White Voters Unless he can capture those voters who most closely resemble himself, the Republican is unlikely to defeat Obama.
By Ronald Brownstein - TheAtlantic.com
Mitt Romney has long faced charges of lacking empathy, but, ironically, his greatest challenge in the campaign's final months may be winning the voters who he most resembles: well-educated, white-collar white suburbanites.
Romney captured the GOP nomination largely on support from those voters -- in places like Oakland County, Michigan, the leafy Detroit suburb where he was reared (as he noted, with his awkward comment about his birth certificate).
Ann Romney Republican National Convention Speech Excerpts
By Garance Franke-Ruta - TheAtlantic.com
She'll be speaking tonight after 10 p.m.
...Tonight I want to talk to you from my heart about our hearts. I want to talk not about what divides us, but what holds us together as an American family. I want to talk to you tonight about that one great thing that unites us, that one thing that brings us our greatest joy when times are good, and the deepest solace in our dark hours.
The Hon. Chris Christie - Speech RNC
Governor of New Jersey
Remarks as Prepared for Delivery at Republican National Convention
August 28, 2012
Exclusive - DrudgeReport.com
GOP votes to nominate Romney
By Russell Berman - TheHill.com
TAMPA, Fla. — The Republican Party on Tuesday voted to nominate Mitt Romney as its candidate for president in 2012.
Now all Romney has to do is accept.
In a formal but anticlimactic roll call of states, GOP delegates to the Republican National Convention ratified the results of the primary process and tapped the former Massachusetts governor as the party's standard-bearer against President Obama this fall.
Romney's nomination won't become official until he delivers his acceptance speech on Thursday, campaign officials said. At that point, he will legally be able to spend money raised for the general-election campaign.
Is Gold Still "The Next Greatest Trade Ever"?
BY PETER KRAUTH, Global Resources Specialist, Money Morning
Believe it or not, the housing crash wasn't all heartache and tears. When the mortgage bubble burst a few select investors made a boatload.
One of them was hedge fund titan John A. Paulson.
In what has been called "the greatest trade ever," Paulson earned $15 billion for himself and his clients as the rest of the markets fell hard.
But thanks to artificially low interest rates, incessant money printing, and ongoing stimulus plans, the same opportunity is beginning to build.
Gold may remain underpinned ahead of Fed events
NEW YORK (Commodity Online): Union Bank of Switzerland (UBS) looks for gold to remain underpinned ahead of upcoming Federal Reserve events on expectations for a third round of quantitative easing even though UBS itself does not look for more QE for now.
The Zurich based bank continued, "The anticipation of (Fed) Chairman (Ben) Bernanke's speech on Friday should at least keep prices supported in the coming week. The risk is that some recent longs retreat to the sidelines ahead of this key event risk. But we suspect that tendency will be minor."
September may be a critical month for Gold: Barclays
LONDON (Commodity Online): September may be a critical month for the gold market, said Barclays Capital in a commodity briefing.
Gold overnight hit its strongest level since April, helped in recent sessions by an improved euro and a dovish tone in the minutes of the July 31-Aug. 1 meeting of the Federal Open Market Committee.
"Although we believe the Fed will refrain from further quantitative easing, gold has priced in an increased likelihood of further action," Barclays says.
Joke of the century: Gold is in a bubble
Commodity Online
The central banks of the East and the central banks of emerging markets continue to buy gold bullion at a steady pace, but in the West, talks of gold bullion being a bubble have resurfaced. But according to Michael Lombardi, lead contributor to Profit Confidential, that is a mistake as there's more room for gold to run.
In the article "Why the Bull Market in Gold Bullion Is Far From Over," Lombardi notes that South Korea's central bank bought another 16 tonnes of gold bullion in July.
The GOP has picked the wrong time to rediscover gold
Posted by Ezra Klein - WashingtonPost.com
In 1981, President Ronald Reagan created the Gold Commission. The purpose of the commission was to appease conservatives who wanted to see the country return to the gold standard. The conclusion of the Commission? That's a clown idea, bro.
"Restoring a gold standard does not appear to be a fruitful method for dealing with the continuing problem of inflation," the Commission reported. They even rejected the halfway measure of issuing a limited number of bonds backed by gold as a way of "introducing gold into our monetary system."
Gold: Gaming the System
BY JOHN R ING - FinancialSense.com
Despite the $340 million settlement by Standard Chartered or MF Global's disappearance of $1 billion of customer funds that were somehow co-mingled with MF's proprietary position, economic interests have blurred the lines between the regulators and the regulated. Regulators are focusing on the big banks again as they attempt to investigate the manipulation of LIBOR, the leading benchmark that underpins at least $350 trillion of securities. Already Barclays PLC has paid a hefty fine and removed its top management, in a scandal that might involve the Bank of England. That the central bank and its surrogate bankers are so intertwined is a reflection of the crony capitalism that has become all too common in the West. Needed are structural reforms but as we have seen in America, the Dodd-Frank creation aimed at overhauling the finance system, morphed into 1,319 pages and its proposals have yet to be enacted four years later. And tellingly, no investment bank or banker was arrested or charged after the crash.
News of a new Gold Commission
The Gold Platform
Editorial of The New York Sun
News that the Republican platform is going to call for the establishment of a new Gold Commission, to explore the route to monetary reform, is the most encouraging thing we've heard out of the convention about to gather at Florida. Drafts of the GOP platform to be voted on next week, according to the report in the Financial Times, will "call for an audit of Federal Reserve monetary policy and a commission to look at restoring the link between the dollar and gold." Good for the GOP, good for Governor Romney, Congressman Paul Ryan, and Congressman Ron Paul, good for the American Principles Project, and good for the legions who have moved the question of monetary reform toward the center of the national debate.
Bill Gross: "Normal" Economic Growth Impossible Now
By Terry Weiss Money Morning
Legendary market maven Bill Gross, the so-called "King of Bonds," said investors will flat-out lose money if they continue employing the "buy and hold" strategies of the past.
In his August Investment Outlook, Gross told investors that "financial repression, QEs of all sorts and sizes" and low interest rates will "dominate the timescape" for decades, maybe longer.
Investors must adjust to the new world order to avoid being the loser in this zero-growth environment, Gross warned.
Ultimately, Gross said, the stock market's historical, inflation-adjusted 6.6% annual growth rate is unsustainable.
Gross, of course, is a bond man.
The Case for Jumping Off the Fiscal Cliff
(Even if We Fall Into Recession) President Obama and Mitt Romney agree: We must do something to prevent a steep and simultaneous tax increase and spending cut in early 2013. What if they're wrong?
By James Kwak - TheAtlantic.com
In an election year, even the release of a routine, semi-annual report by the Congressional Budget Office can become fodder for grasping politicians. Obama's campaign claimed that Republicans are holding the middle class hostage by demanding tax cuts for the rich, while Romney's countered that both high unemployment and high deficits are Obama's fault.
You Call This An Economic Recovery?
By Investor's Business Daily via RealClearMarkets.com
Back in August 2010, Treasury Secretary Timothy Geithner wrote an Op-Ed titled "Welcome to the Recovery." Two years later, most Americans would be right to ask: What recovery?
Yes, the economy is technically growing, and corporate profits are up. But the pace of growth during the Obama "recovery" has been so slow that it's leaving most Americans further behind.
A Flashing Warning On
The "Unintended Consequences"
Of Ultra Easy Monetary Policy From... The Fed?!
Submitted by Tyler Durden - ZeroHedge.com
The case for ultra easy monetary policies has been well enough made to convince the central banks of most Advanced Economies to follow such polices. They have succeeded thus far in avoiding a collapse of both the global economy and the financial system that supports it. Nevertheless, it is argued in this stunningly accurate paper via none other than the Dallas Fed (and BIS economist William White), that the capacity of such policies to stimulate "strong, sustainable and balanced growth" in the global economy is limited. Moreover, ultra easy monetary policies have a wide variety of undesirable medium term effects - the unintended consequences. They create malinvestments in the real economy, threaten the health of financial institutions and the functioning of financial markets, constrain the "independent" pursuit of price stability by central banks, encourage governments to refrain from confronting sovereign debt problems in a timely way, and redistribute income and wealth in a highly regressive fashion. While each medium term effect on its own might be questioned, considered all together they support strongly the proposition that aggressive monetary easing in economic downturns is not "a free lunch". Absolute must read! (below)
Cleveland Fed's Pianalto Sees Limits of Monetary Policy,
But Doesn't Draw a Line
By 24/7 Wall St. via DailyFinance.com
The president of the Cleveland Federal Reserve Bank, Sandra Pianalto, gave a speech today that pretty much sums up the recent actions taken by the FOMC, of which she is a voting member. In other words, essentially no action, but more "wait and see." This is a sharp contrast to Chicago Fed President Charles Evans's speech in Hong Kong in which he called for more action now.
Pianalto's position is that the Fed has taken some large and unprecedented steps to deal with the financial crisis that hit the U.S. in 2008. She believes that near-zero interest rate funds and quantitative easing were critical to preventing further disaster:
Bernanke to spotlight Fed policy options at Jackson Hole
By Alister Bull
WASHINGTON | Mon Aug 27, 2012 12:48pm EDT
(Reuters) - Federal Reserve Chairman Ben Bernanke will keep markets guessing about the timing of another round of bond purchases when he speaks on Friday in Jackson Hole, but he is likely to sustain expectations for action of some kind next month.
Bernanke will address fellow policymakers at the Kansas City Federal Reserve's annual central banking retreat, held against the majestic backdrop of the Grand Teton mountains in Wyoming, at 8 a.m. Mountain Time (1400 GMT).
Jackson Hole May Disappoint Investors Primed For Stimulus
By Joshua Zumbrun - Bloomberg.com
Federal Reserve Chairman Ben S. Bernanke -- returning this week to the scene of a 2010 speech that foreshadowed a second round of quantitative easing -- probably will disappoint investors looking for him to signal new stimulus.
Bernanke probably won't use his Aug. 31 speech at the Fed's annual symposium in Jackson Hole, Wyoming, to suggest a third round of bond buying is at hand, according to economists including Michael Feroli and James O'Sullivan. Members of theFederal Open Market Committee -- who meet next on Sept. 12-13 -- are closely monitoring unemployment and other data and have been divided about whether to spur expansion. The U.S. economy also remains beholden to political decisions made in Washington and in Europe, which is struggling to contain its debt crisis.
Libor's Trillion-Dollar Question
By the Editors - Bloomberg.com
The global investigation into the manipulation of Libor has so far done a good job of exposing how bankers corrupted one of the world's most important financial indicators. Now authorities need to take a giant step further: Make banks release the data needed to determine how much damage was done and who should bear the most responsibility.
For those still not familiar with the London interbank offered rate, it's an array of benchmarks designed to provide an objective assessment of banks' borrowing costs -- information that is used to set the payments on hundreds of trillions of dollars in loans, securities and derivatives worldwide. The rates are calculated by asking banks, every workday morning in London, how much they would pay to borrow money in 10 currencies and at 15 time periods, from overnightto a year.
Judgment Day for the Eurozone
By Hans-Werner Sinn - Project-Syndicate.org
MUNICH – Europe and the world are eagerly awaiting the decision of Germany's Constitutional Court on September 12 regarding the European Stability Mechanism (ESM), the proposed permanent successor to the eurozone's current emergency lender, the European Financial Stability Mechanism. The Court must rule on German plaintiffs' claim that legislation to establish the ESM would violate Germany's Grundgesetz (Basic Law). If the Court rules in the plaintiffs' favor, it will ask Germany's president not to sign the ESM treaty, which has already been ratified by Germany's Bundestag (parliament).
Internal discord leaves ECB's threats toothless Commentary: Bundesbank's Weidmann undercuts Draghi
By David Marsh, MarketWatch
LONDON (MarketWatch) — A central bank's ability to intimidate the financial markets through active, targeted intervention is directly proportional to its ability to deliver on promised action.
Exactly as in the Cold War.
Imagine if Harry S. Truman, Dwight D. Eisenhower or John F. Kennedy threatened the Soviet Union with nuclear retaliation in the event of intrusion on NATO territory. The next day, the president is called to order by his defense secretary who says deploying nuclear weapons is illegal. The deterrent would lose all credibility. Very likely, West Germany would have been overrun in the 1950s or 1960s by the Red Army.
The Bundesbank against the World German Central Bank Opposes Euro Strategy The European Central Bank plans to resume buying the bonds of crisis-hit countries on a large scale. Jens Weidmann, head of the German central bank, is firmly opposed to the idea, arguing that it will lead to inflation and lessen pressure on governments to carry out reforms. But he is becoming increasingly isolated within the ECB and in the political world.
By Christian Reiermann, Michael Sauga and Anne Seith - Spiegel.de
Volker Bouffier has always portrayed himself as the last true conservative in Germany's center-right Christian Democratic Union (CDU). Bouffier is the governor of Hesse, the western German state where Germany's financial capital Frankfurt is located, and is known for raging against gay marriage, multiculturalism and school reforms. On questions of monetary policy, he has always been a champion of traditional German virtues. "The European Central Bank cannot become an institution that compensates for the failures of individual government budgets, such as Italy's," he said recently. "That isn't part of its mandate."
Argentine leader's image falls as inflation soars
By Hugh Bronstein
BUENOS AIRES | Sun Aug 26, 2012 3:01pm EDT
(Reuters) - Argentine President Cristina Fernandez's popularity sank to 30 percent in August, less than half of what it was a year earlier, according to a poll published on Sunday that portrayed a country worried about crime and high inflation.
The telephone survey of 2,259 voting-age Argentines by polling company Management & Fit showed dissatisfaction with the interventionist policies that won Fernandez a landslide re-election 10 months ago.
Is JPMorgan going to push the WaMu MBS class action to trial?
Reporting by Nate Raymond - ThomasReuters.com
This week, U.S. District Judge Marsha Pechman in Seattle denied a defendant's motion for summary judgment in a class action over Washington Mutual mortgage-backed securities, clearing the way for a trial on Sept. 17. Plaintiffs' attorney Steven Toll of Cohen Milstein Sellers & Toll, who says damages could be as high as $550 million, insists that the trial will go ahead. "All efforts to resolve the case have been unsuccessful so far," he said. "If any case is likely to go to trial, this is it."
Social Security's Woes Are Worse Than You Think
By Ramesh Ponnuru - Bloomberg.com
While the Romney and Obama camps have made increasingly bitter accusations about each other's plans for Medicare, a bipartisan consensus on entitlements has emerged in the past few years. Too bad that consensus is wrong.
On both left and right, the politicians and the experts are saying the U.S. needs to fix Medicare -- and have made fixing Social Security an afterthought. President Barack Obama has signed changes to Medicare into law, but has done nothing about Social Security. For two years in a row, Republicans in Congress have supported budgets that rein in the growth of Medicare spending but leave Social Security alone. Expect to hear a lot more about Medicare than Social Security at the Republican convention this week.
U.S. Middle Class on Verge of Collapse?
By Michael Lombardi, MBA for Profit Confidential
Economic growth occurs when there is rising demand for goods and services. Historically, in the U.S., this demand has largely been due to the middle class.
Currently, the American middle class makes up about 51% of the U.S population, compared to 61% in 1971. In the 70s, the middle class earned 62% of the nation's income and the wealthier Americans received 29%. Compare that to now. In 2010, the middle class earned only 45% of the nation's income. (Source: Associated Press, August 22, 2012.)
College Becoming the New Caste System Higher education is becoming the new caste system.
By Niall Ferguson - theDailyBeast.com
School is in the air. It is the time of year when millions of apprehensive young people are crammed into their parents' cars along with all their worldly gadgets and driven off to college.
The rest of the world looks on with envy. American universities are the best in the world—22 out of the world's top 30, according to the Graduate School of Education at Shanghai Jiao Tong University. Once it was Oxford or Cambridge that bright young Indians dreamed of attending; now it is Harvard or Stanford. Admission to a top U.S. college is the ultimate fast track to the top.
Drone U. rides flight boom Pilot founds first university dedicated to unmanned systems
By Ben Wolfgang-The Washington Times
For all of the skeptics and detractors it has produced, the drone industry also has its vocal supporters.
Few are louder than Jerry LeMieux, a retired Air Force colonel, commercial airline pilot, college lecturer and, most recently, the founder of the world's first university dedicated solely to unmanned systems education.
"At the end of the day, I'm just trying to do something good for the unmanned systems community," he said at the drone sector's Las Vegas trade show earlier this month.
Better yet... get your own drone! Techpod the hobby U.A.V. The Techpod a high performance, low cost small unmanned aircraft for the hobbyist and student pilot.
Designed by Wayne Garris - Kickstarter.com The Techpod: Project Funding window ends Sept 22nd
A high performance remote control airplane for first person view (FPV) flying and the Umanned Arial Vehicle (UAV) hobbyist. Designed from the ground up to have an enclosed pan and tilt camera mounted in the nose for a completely unencumbered point of view. All wrapped up in a super slick fuselage with high aspect ratio wings, a high efficiency airfoil and room to swing up to a 12 inch propeller.
How Young Homeowners Lost Out by Buying 48 percent of mortgage borrowers
younger than 40 are currently underwater
By Jordan Weissmann - TheAtlantic.com
Thanks to a bad economy, high debt, and a trend toward smaller urban living, the Millennials will likely be a generation of renters for years to come. Derek Thompson and I explore the consequences of that reality inour piece for this month's Atlantic. But there's a group of young adults we don't talk about that deserves some attention: Those who are already homeowners.
So how has the investment turned out them? For a large portion, not well.
Drought-Driven Food Costs May Damp Sentiment: Economy
By Shobhana Chandra and Sandrine Rastello - Bloomberg.com
The worst U.S. drought in at least 50 years may restrain consumer confidence and spending as it pushes Americans' grocery bills higher later this year.
Food prices will increase an average 4 percent annual rate in the nine months ending June 2013, up from 1.5 percent currently, said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. That may trim real disposable incomes by 0.3 percentage point from the fourth quarter of 2012 through the first half of next year and reduce spending by a similar amount, he estimates.
Ten Tips For Maximizing Your iPhone and iPad
Own an iPhone or iPad? Chances are there are some functions you're still not aware of. WSJ's Katherine Boehret has drawn up a list of 10 to help you get the most out of your devices. [video]
Chavez Plans to Double Venezuelan Oil Output
to 6 Million bpd by 2019
By John Daly - OilPrice.com
Even the detractors of Venezuelan President Hugo Chavez have never accused him of thinking small.
Chavez is currently running for re-election in Venezuela's upcoming presidential election, scheduled for 7 October, against opposition candidate Henrique Capriles, the former governor of Miranda state. Fifty-eight year-old Chavez, who has held power since 1999, is seeking his third six-year term as president. Chavez has survived three cancer operations. Depending what (notoriously unreliable) poll you read, the forty year-old Capriles is closing the gap, even though Chavez said, "The bourgeois say they are going to win, but they know they're losing and it is impossible to reverse a gap (in the polls) of not less than 15 points with less than a month and half to go."
Top Israeli Rabbi urges prayers for the destruction of Iran
Reuters - Independent.co.uk
An influential Israeli Rabbi has called for prayers for Iran's destruction, a week after Prime Minister Benjamin Netanyahu appeared to court his support for a possible attack on a nuclear programme Israel sees as an existential threat.
The sermon by Rabbi Ovadia Yosef added to a flurry of recent rhetoric from Israeli officials that has raised international concern that Israel, widely believed to be the Middle East's only atomic power, might attack Iran's nuclear facilities. "[When] we ask God to 'bring an end to our enemies', we should be thinking about Iran, those evil ones who threaten Israel. May the Lord destroy them," Yosef was quoted as saying by Israeli media yesterday.
Is Benjamin Netanyahu bluffing on Iran strike? Israel's Prime Minister is playing a delicate political balancing act at home and in the US, reports Donald Macintyre in Jerusalem
By DONALD MACINTYRE - Independent.co.uk
Nothing better illustrates Israeli Prime Minister Benjamin Netanyahu's determination to condition his public to a unilateral strike on Iran than the obloquy visited this month by his circle on the – these days – popular state President Shimon Peres.
When Mr Peres dared to say publicly that Israel should only act in concert with the US, Israelis were told that he had a long history of misjudgments, including his opposition to the 1981 solo strike on Saddam Hussein's nuclear plant at Osirak.
What Syria Means
By Jaswant Singh - Project-Syndicate.org
NEW DELHI – Syria's agony has generated a variety of unproductive responses: verbal condemnation of the excesses of President Bashar al-Assad's regime; disagreements about the wisdom of armed intervention; and all-around confusion about the possibility of finding a viable long-term solution. Worse, in this sorry state of affairs, the world may be getting a glimpse of a very ugly future.
We believe that the USA is the major player
against Syria and the rest are its instruments Assad's Foreign Minister gives his first interview
to a Western journalist since the conflict began
By ROBERT FISK - Independent.co.uk
The battle for Damascus could be heard inside the Foreign Minister's office yesterday, a vibration of mortars and tank fire from the suburbs of the capital that penetrated Walid Muallem's inner sanctum, a dangerous heartbeat to match the man's words.
America was behind Syria's violence, he said, which will not end even after the battle for Aleppo is over. "I tell the Europeans: 'I don't understand your slogan about the welfare of the Syrian people when you are supporting 17 resolutions against the welfare of the Syrian people'. And I tell the Americans: 'You must read well what you did in Afghanistan and Somalia. I don't understand your slogan of fighting international terrorism when you are supporting this terrorism in Syria'."
A return to Gold Standard
may trigger $10,000/ounce Gold rally
Commodity Online
Is it a dream or a nightmare? Nobody knows, but the global superpower, US, if it returns to gold standard would see the price of gold skyrocketing to $10,000 an ounce and as a consequence would witness demand of greenback vanishing into thin air, sparking a catastrophe.
The Republicans—possibly playing an election gimmick—"will call for a commission to look at restoring a fixed value for the dollar, according to a draft of the party platform to be adopted at the Republican National Convention that begins on Monday in Tampa, Florida."
Gold and the $600 Billion Question
BY CLIF DROKE - FinancialSense.com
After spending the better part of three months locked in a lateral range, gold finally broke out on Aug. 21 and went on to make a series of follow-through highs. December gold was quoted at $1,667 as of this writing, its highest level since early May. The move came as many investors assume the Fed is about to stimulate the economy.
The basis behind this assumption came from the recently released minutes from the U.S. Federal Reserve's latest meeting, which showed that "many members" of the Fed's Open Market Committee felt that additional action would be warranted unless the economic recovery shows "substantial and sustainable strengthening." The minutes also showed that many officials favored pushing any increase in short-term interest rates beyond the Fed's current target of late 2014. Many economists believe the target will be pushed to mid-2015.
Gold, The Silent Killer:
Yellow Metal's Up Big And Could Rally Further
By Agustino Fontevecchia, Forbes.com
On Friday morning, investors woke up and realized gold prices had crept all the way up to almost $1,700 an ounce again. While markets seemed to have focused their attention on equities,Facebook, and financial scandals over the last couple of weeks, the Federal Reserve surprised many last week releasing a set of very dovish FOMC minutes.
Markets took it as an indication of a coming third round of quantitative easing. While this reaction may have been an over-exaggeration, as Dennis Gartman noted, players in the gold market seem to have placed their bets on Bernanke and additional monetary easing. Economists from Nomura and Barclays aren't so sure on QE3, even though they have ratcheted up their expectations and believe the FOMC will deliver something in September.
Global stimulus to be bullish for Gold, Silver
CommodityOnline.com
NEW YORK (Commodity Online): TD Securities looks for stronger gold, silver, crude oil and bulk commodities into 2013 largely due to global stimulus expectations, but at the same time offers caution in case Fed easing does not materialize. Supply/demand factors may play "second fiddle" for now, TDS added.
TDS anticipates unconventional open-ended monetary policy action from the Federal Open Market Committee as early as the next meeting. The Fed's targeting of growth is very likely to increase inflation expectations at the same time as it keeps the yield curve flat and low.
Propaganda, Politics, and the Gold Standard
By Andy Sutton - GoldSeek.com
....Central Banks and Inflation – Inextricably Linked
I am quite sure that the issue of inflation doesn't need to be proven once again. It is a monetary event. A quick look at the various monetary aggregates over time demonstrates the inflation. The concomitant loss of the dollar's purchasing power over the same period demonstrates inflation well beyond that necessary to accommodate a growing economy (hint: fractional reserve banking and America's debt explosion). It is a pretty simple logic chain. Inflation is a monetary event. Central banks are in charge of the world's monetary policy. Therefore, inflation is the responsibility of central banks and is NOT the by-product of a healthy economy, nor is inflation necessary to have a healthy economy.
The dirty truth is that monetary discipline vis a vis the gold standard eliminates the need for centralized control of the monetary system and goes against every principle of both the morally and intellectually bankrupt Keynesian doctrine and the whimsy of power-hungry central planners around the globe.
The Rot Runs Deep 1:
The Federal Reserve Is a Parasitic Wealth Transfer Machine
By Charles Hugh Smith - OfTwoMinds.com
The Federal Reserve is a wealth transfer machine, skimming wealth from the productive many and transferring it to the parasitic few.
Today I launch a series entitled "The Rot Runs Deep" that examines the moral and financial rot at the core of American finance, politics and culture. We have reached a unique junction of American history: the confluence of Big Lie propaganda, neofeudalism and the worship of false financial gods.
The Big Lie propaganda machine of corporate media and the Central State has perfected Orwell's nightmare vision of centralized media and a fascist centralized State which turn lies into self-serving "truth."
Fed mulls open season on bond buys to help economy
By Pedro da Costa and Leah Schnurr
WASHINGTON/NEW YORK | Sun Aug 26, 2012 4:22pm EDT
(Reuters) - The Federal Reserve is considering a new approach to unconventional monetary policy that would give it more leeway to tailor the scale of its stimulus to changing economic winds.
While fresh measures are not assured and the timing of any potential moves are still in question, some officials have said any new bond buying, or quantitative easing, could be open-ended, meaning it would not be bound by a fixed amount or time frame.
Dueling Fed Presidents
BY TIM DUY PHD - FinancialSense.com
Blogging tonight from Joseph, Oregon, on my way for a few days of camping in theWallowa Mountains. Hopefully I will be able to get some pictures up over the weekend, but I haven't had much luck with the Typepad ap on 3G service.
For those of us tracking the odds of QE3 in September, two regional Fed presidents - both non-voting participants - offered opposite views today. Neither was terribly surprising. Chicago Federal Reserve President Charles Evans reiterated his support for additional easing.
Treasury Fails to Sell Tarp Shares in Guaranty Federal The Treasury Department recouped $62.4 million in its latest auction of the securities it owns from the Troubled Asset Relief Program, but it was unable to find a buyer for shares Guaranty Federal Bancshares in Springfield, Mo.
By Jackie Stewart - AmericanBanker.com
The Treasury sets minimum prices for each security in the auctions and the department said Friday that it did not receive sufficient bids for the Guaranty shares. The $648 million-asset Guaranty received $17 million in funds under Tarp in January 2009.
Bernanke says Fed has scope to provide more stimulus
(Reuters) - The Federal Reserve has room to deliver additional monetary stimulus to boost the U.S. economy, Fed Chairman Ben Bernanke told a Congressional oversight panel in a letter.
"There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery," Bernanke wrote to the committee's chairman, Representative Darrell Issa, in a letter obtained by Reuters on Friday.
Bernanke at the end of next week will give a closely watched speech at an annual symposium in Jackson Hole, Wyoming, which will be closely watched for clues into the prospect of further bond-buying from the Fed.
Keiser Report: Debt Bomb (E332)
In this episode, Max Keiser and Stacy Herbert discuss CNBC swooning for Biebanke,' Warren Buffett waving many red flags and tax revenue plummeting in UK after a dose of Georgie Porgie's bubble and fraud pudding. In the second half of the show, Max Keiser talks to Dominic Frisby, resident gold bug at Moneyweek, about debt bombs and the City of London. They also discuss how North Sea oil enabled the big bang and how a property bubble could undo it.
Economist Appearing On Max Keiser Show Forced To Resign
By Jon Matonis, Contributor - Forbes.com
It's been confirmed now that economist Sandeep Jaitly has been forced to resign his position from The Gold Standard Institute following his on-air remarks about Ludwig von Mises and Ayn Rand. Jaitly, a follower of Antal Fekete, originally tweeted that"If it ain't Menger or his direct student Eugene [sic] Von BB, it ain't Austrian. Sorry #Mises: respectfully, too many mistakes were made."
On August 16th, Jaitly elaborated further on Russia Today's Keiser Report:
Mises didn't look back to Menger's original axiom which was that value is not outside of your own consciousness. And he didn't observe what Menger observed about market action in the sense that there are always two prices, there's a bid and an offer. And von Mises didn't like to admit that interest was a market phenomenon. He sort of wanted to imply that it's a sort of natural consequence of not having a present good basically. So to develop a theory of interest without going back to Menger's original observations is not continuing the tradition in the Austrian way as we would see it.
Further Fed Easing Addresses the Wrong Problem
By Matthew Philips - BusinessWeek.com
Barring some kind of unforeseen surge in the economy, the Fed will "likely" embark on additional stimulus. That's not really news. We already knew the Fed had inched closer to action from the statement it released following its July 31-Aug. 1 Open Market Committee meeting. The minutes (PDF) released on Aug. 22 only reinforce that view.
The key difference is that the bar has been lowered. The economy doesn't have to get worse to compel the Fed to act, it now has to show "substantial and sustainable improvement" in order for it not to act. We can assume that means growth higher than the 1.5 percent pace tallied in the second quarter.
Why Fed's policy is in a fix... Clouds over economy unlikely to clear soon Fed weighs next move,
consumer spending likely a deciding factor
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The U.S. economy is like an overcast fall day: neither hot nor cold, with a chance of worsening weather.
The cloudy state of the economy has put the Federal Reserve in a fix. The central bank seems increasingly willing to take another stab at stimulating the economy, but only if growth clearly appears to be faltering.
The game plan of the Fed will capture much of the economic spotlight this week as central bankers gathers for their annual retreat at Jackson Hole in Wyoming. Wall Street will be looking for clues on whether the Fed is ready to pull the trigger.
Matt Taibbi, Eliot Spitzer Discuss Eric Holder's Failure
RollingStone.com
Got a chance to talk with Eliot Spitzer last night about Eric Holder's decision not to prosecute Goldman Sachs for the offenses laid out in the Levin report.
I was trying not to be too obvious in making the point that Spitzer is an example of the kind of guy you would want looking at that Goldman case. Not only did I not want to look like a suck-up, but I wasn't sure how, "As you know, Eliot, a prosecutor is supposed to be kind of a dick!" would go over. Because I would have meant it in the most complimentary way possible. And it has nothing to do with politics. If you read James Stewart's Den of Thieves you can see that Rudy Giuliani had some of the same key qualities. A good prosecutor should look down the barrel of a bunch of millionaire lawyers at Davis Polk or White and Case and feel turned on by the challenge of combat. Making a deal with any devil should burn him at the core, keep him awake at night.
You Are Probably Worse Off Than You Were Four Years Ago
By Timothy Noah - TNR.com
In March, the Berkeley economist Emmanuel Saez shocked a lot of people by calculating that during the first year of the recovery from the 2007-2009 recession, incomes for the top one percent grew by 11.6 percent while incomes for the bottom 99 percent grew a mere 0.2 percent. (All figures here are in "real dollars," i.e., they discount for inflation.) Granted, the one percent had taken it on the chin during the recession; from 2007 to 2009, incomes had fallen twice as fast for the one percent (36.3 percent) as for the average family (17.4 percent). The rich always lose big in recessions, because so much of their income comes from capital gains. (Indeed, the one percent took an even bigger share of the nation's income losses between 2000 and 2002, which included the "tech bubble" recession of 2001.) But Saez's calculations showed that the one percent had come roaring back. In 2010, fully 93 percent of the recovery ended up in the pockets of the one percent. One year later, the bottom 99 percent were marching in the streets.
Private Currency Competition Is The Monetary Answer
By Wendy Milling - Forbes.com
The push for monetary reform is on, and intellectuals seeking to reform the monetary system in accordance with free market principles are seriously debating two alternative solutions. One is a return to the gold standard in some fashion. The other is a free market in currency, i.e., private currency competition. Toward the latter end, Rep. Ron Paul has sponsored a bill repealing legal tender law.
Banks Deploy Artificial Intelligence
to Deepen Understanding of Customers As BBVA Compass was tinkering with its retail banking pricing strategies last fall, robots were scraping the web behind the scenes.
By Sean Sposito - AmericanBanker.com
Like its peers, the Birmingham, Ala. bank needed to adapt to caps on interchange fees. It had to decide which benefits its retail customers would keep and which would get the ax.
On a hunch, the bank decided to drop its $25 checking anniversary bonus, while keeping its debit rewards and other features.
The computers confirmed that people were upset, but prodded executives to tell customer service reps and tellers to explain that BBVA Compass had decided to keep its other perks.
With Vacation Over, Europe Is Back To Square Minus One:
Merkel Backs Weidmann, Demands Federalist State
Submitted by Tyler Durden - ZeroHedge.com
Earlier today we showed for the nth time that with insanity and insolvency ravaging the old continent, at least one person has the temerity to avoid sticking his head in the sand of collectivist stupidity and denial. That person is Bundesbank head Jens Weidmann, who until now may or may not have had the backing of Germany's elected leader, Angela Merkel. Moments ago it became clear whose side Merkel, who recently came back from vacation and is set to spoil the party that the (insolvent) mice put together in her absence, is on. From Reuters, who quotes Merkel in her just released interview with German ARD: "I think it is good that Jens Weidmann warns the politicians again and again," Merkel said. "I support Jens Weidmann, and believe it is a good thing that he, as the head of the German Bundesbank, has much influence in the ECB."
Bundesbank's Weidmann Warns:
Debt Monetization Is An Addictive Drug
Submitted by Tyler Durden - ZeroHedge.com
It is one thing for various anti-Central Planning (and thus central bank)outlets to warn, over 3 years ago, that easy monetary policy is merely an enabling substance, and is addictive as any drug to a dysfunctional political establishment which is more than happy to avoid fiscal prudence if monetary policy is readily available to delay the inevitable day of reckoning when monetizing the debt will no longer work. It is a different matter entirely when the head of the world's only solvent central bank - the German Bundesbank, which happens to be the biggest guarantor of that other mega hedge funds the ECB, and which of all developed economies also happens to have had the closest recent encounter with hyperinflation (unlike all the "other" theoretical experts who enjoy talking extensively about matters they have zero experience with). In an interview with German Spiegel magazine, Buba head Jens Weidmann, once again has loudly warned what as recently as 2009 very few dared to even think: namely that rampant and gratuitous deficit plugging using central bank debt issuance, and thus explicitly monetizing the debt, "can be addictive as a drug." Obviously, like any drug overdose, the aftereffects are always fatal.
Russia joins the 'global club' as economy slows One of the very few pieces of good news in terms of the global economy last week was that Russia became the 156th member of the World Trade Organisation.
By Liam Halligan - Telegraph.co.uk
This latest round of eurozone "crisis diplomacy" is set against a backdrop of growing evidence that the world economy is slowing.
For weeks, global stock markets have been treading water, remaining relatively buoyant but on extremely low volumes, waiting for the quantitative easing (QE) lifeboat. It really seems as if every financial analyst in the world is fixated on the big central banks, anticipating the moment when the US Federal Reserve, the Bank of England and – as Berlin finally capitulates – the European Central Bank fire up their virtual printing presses.
Chris Hedges on "Empire of Illusion"
Social critic and author of "Empire of Illusion", Chris Hedges talks about the end of literacy and the triumph of spectacle in American culture.
On the Failed Job Creation Front,
Obama Has Completely Run Out of Ideas
By Paul Roderick Gregory, Contributor - Forbes.com
Unemployment is the millstone around President Obama's neck in the 2012 election campaign. Attentive voters understand he is offering excuses — a worse-than-expected economy, financial crises requiring longer recoveries, bad luck of tsunamis, droughts, and the Euro — not solutions. Obama cannot deliver solutions because a real jobs program contradicts his core principles, alienates his base, and infuriates his crony contributors. He can only promise more of the failed policies –stimulus and tinkering — of his first three and a half years.
Obama Calls Money Shortage 'Critical'
BY DANIEL HALPER - WeeklyStandard.com
In a fundraising email to perspective donors, President Obama says, "This is critical." Obama explains that he is being outspent in states likes Iowa by Republican presidential candidate Mitt Romney.
Here's the entire email:
Daniel --
When I'm out there talking to voters, we talk about what we've done, what we plan to do over the next four years, and why the other guys have dangerous plans to go back to the policies that failed America for almost a decade.
Customer Deposits Are Property of the Bank:
Close Your Account NOW
By Susanne Posel - Activist Post
In June of 2012, Eric Bloom, former chief executive, and Charles Mosely, head trader of Sentinel Management Group (SMG) were indicted for stealing $500 million in customer secured funds. Both Mosely and Bloom were accused of "exposing" customer segregated funds "to a portfolio of highly risky derivatives."
These customer funds were used to "back up personal investments" which were part of "collateral for a loan from Bank of New York Mellon" (BNYM). This loan derived from stolen customer monies was "used to purchase millions of dollars worth of high-risk, illiquid securities, including collateralized debt obligations, or CDOs, for a trading portfolio that benefited Sentinel's officers, including Mosley, Bloom and certain Bloom family members."
Denver area 5th for small-business bankruptcies
Denver Business Journal by Mark Harden
Metro Denver ranks fifth for small-business bankruptcy filings in the second quarter among U.S. metro areas, but the number dropped sharply from a year earlier.
That's according to a new report from Equifax Inc., an Atlanta-based consumer, commercial and workforce information provider.
The report says there were 273 small-business bankruptcy filings in the Denver-Aurora metro area in the second quarter, exceeded only by Los Angeles-Long Beach (746), Riverside-San Bernardino, Calif. (430), Sacramento, Calif. (289) and Houston (281).
Hertz Buys Dollar Thrifty for $2.6B After Years of Trying Hertz Said To Reach Deal To Acquire Dollar Thrifty
By Mark Clothier, David Welch and Zachary R. Mider - Bloomberg.com
Hertz Global Holdings Inc. (HTZ), after more than half a decade of trying, struck a deal to buyDollar Thrifty Automotive Group Inc. for about $87.50 a share in cash and secure its place as the No. 2 player in the U.S. market.
The $87.50 share price represents an 8 percent premium to Dollar Thrifty's closing price of $81 (DTG) on Aug. 24. It's more than double what Hertz offered a little more than two years ago.
America's Descent into Poverty
By Paul Craig Roberts - PaulCraigRoberts.org
The United States has collapsed economically, socially, politically, legally, constitutionally, and environmentally. The country that exists today is not even a shell of the country into which I was born. In this article I will deal with America's economic collapse. In subsequent articles, i will deal with other aspects of American collapse.
Economically, America has descended into poverty. As Peter Edelman says, "Low-wage work is pandemic." Today in "freedom and democracy" America, "the world's only superpower," one fourth of the work force is employed in jobs that pay less than $22,000, the poverty line for a family of four. Some of these lowly-paid persons are young college graduates, burdened by education loans, who share housing with three or four others in the same desperate situation. Other of these persons are single parents only one medical problem or lost job away from homelessness.
'Saving' the middle class
By Robert J. Samuelson - WashingtonPost.com
Republicans and Democrats don't agree on much, but they do agree on this: the middle class. At their conventions, the two parties will compete fiercely for its support. Republicans will accuse Barack Obama of destroying the middle class through policies perpetuating high joblessness and feeble economic growth. Democrats will portray Mitt Romney as a tool of the rich who doesn't understand the middle class. To the victor may go the election, because "saving the middle class" has arguably become the campaign's defining issue.
Boomers Are Breaking the Deal
By: John Mauldin - GoldSeek.com
....When I was young, a car with 90,000 miles on it was getting quite old, and things had to be constantly fixed or replaced. Today, 90,000 miles is just getting started. Cars don't wear out like they used to.
And apparently the same can be said for the Baby Boomer generation. In the past, as you approached 65 you began to think about retiring. Today, not as many people are ready to "hang up their spurs."
The next chart is from the St. Louis Fed FRED database. The blue line is the employment level of those 55 years of age and older (scale on the left), and the red line is the employment level of all workers (scale on the right.
"The same prudence which in private life would forbid our paying our own money for unexplained projects, forbids it in the dispensation of the public moneys." --Thomas Jefferson
Mitt Romney's selection of Paul Ryan as his running mate made clear that the presidential race would not only be about what a lousy job Barack Obama has done but also about the future of our great nation. We welcome the choice, not least because it drives the Left absolutely batty.
Paul Ryan, the Wisconsin Republican who chairs the House Appropriations Committee, knows the federal fiscal situation inside and out. Indeed, he schooled the president during last year's debt ceiling negotiations and during the February 2010 bipartisan health care reform meeting. Not that Obama can be taught -- he's an extreme leftist Keynesian through and through. The campaign now will center on how to fix Obama's abysmal record of setting a new spending floor with more than triple the highest Bush deficit and driving up national debt by nearly $6 trillion in his all-too-long three-and-a-half years in office.
GOP plank decries 'social experimentation' in military
By Rowan Scarborough-The Washington Times
Mitt Romney does not bring up President Obama's social revolution inside the armed forces, but the Republican Party platform, by calling an end to "social experimentation" in the ranks, does.
The platform also backs the current ban on women serving in direct ground combat units, as the Obama administration is moving toward a decision to remove the prohibition before the November election.
Think Your Doctor's Busy Now?
Just Wait Until Obamacare Kicks In
By Bruce Japsen, Contributor - Forbes.com
Doctor "burnout" is a national problem even before physicians begin to see tens of millions of uninsured Americans with a pent up demand for their medical services.
"Almost 1 in 2 U.S. physicians has symptoms of burnout,"the study, published online this week in the Archives of Internal Medicine said. "The prevalence of burnout among US physicians is at an alarming level."
The cold blanket of Obamacare
By Adam Frederic Dorin, M.D., MBA - WashingtonTimes.com
SAN JOSE, August 26, 2012 - "Secrets keep this nation safe," said a retired U.S. intelligence officer, adding "but secrets also kill us slowly."
In the clandestine world of spooks and ruffians, some refer to the growing omnipresence of the U.S. government's reach into the lives of ordinary Americans as 'the cold blanket'.
GM Seeks Bigger Credit Line
To Shrink Pension Obligations; Déjà Vu Pension Woes
Going into debt to fund pensions seems like a ridiculous thing to do, especially for a company had a chance to shed more of those pension obligations in bankruptcy.
Please consider the Wall Street Journal story GM Wants to Up Credit Line
General Motors Co. is in preliminary talks with banks to potentially double its $5 billion line of credit as the auto maker looks to strengthen its balance sheet and shrink pension obligations, according to people with knowledge of the discussions.
Innovators working their way out of a job At IBM, technological advances
demand new skill sets, lower labor costs
By Patrice Hill-The Washington Times
ENDICOTT, N.Y. — Cort Martin followed in the footsteps of his father and grandfather and made his career at IBM.
That is what nearly everyone did in this town, the birthplace of the century-old technology titan. IBM offered the best salaries, the best benefits, and — best of all — trained Mr. Martin in accounting, management or whatever skill the company needed at a school for IBM employees on its sprawling campus here.
All Job Creation Is Local (Well, Almost)
By Derek Thompson - TheAtlantic.com
Seeking the "single best explanation for middle-class decline" this week, this week I wrote that in the age of globalization, localization was the most important factor in job creation. It was in local industries sheltered from international competition or rapid technological change where we saw the vast majority of job growthin the two decades before the Great Recession. And, as these sectors tended to be barely profitable and unskilled, middle-class incomes fell behind.
In Enrico Moretti's new book, "The New Geography of Jobs," he makes a related point: That "innovation sector" jobs, made profitable by their national or global audience, play an important role in creating service sector jobs that are explicitly local and cannot serve a national or global community. Via Mark Muro:
JMP: Lindsey Williams 24 August 2012
John McGowan Presents former Alaskan Oil Pipeline chaplain Lindsey Williams. Mr. Williams shares the latest info on the upcoming bank holiday, the coming cashless society, the middle east wars and oil prices.
Peak cheap oil is an incontrovertible fact
If the looming global oil crunch has been postponed for another decade or two as widely alleged, this is far from obvious in today's commodity markets.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Brent crude jumped to $115 a barrel last week. Petrol costs in Germany and across much of Europe are now at record levels in local currencies.
Diesel is above the political pain threshold of $4 a gallon in the US, hence reports circulating last week that the International Energy Agency (IEA) is preparing to release strategic reserves.
Barclays Capital expects a "monster" effect this quarter as the crude market tightens by 2.4m barrels a day (bpd), with little extra supply in sight.
Peak cheap oil is an incontrovertible fact If the looming global oil crunch has been postponed for another decade or two as widely alleged, this is far from obvious in today's commodity markets.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Brent crude jumped to $115 a barrel last week. Petrol costs in Germany and across much of Europe are now at record levels in local currencies.
Diesel is above the political pain threshold of $4 a gallon in the US, hence reports circulating last week that the International Energy Agency (IEA) is preparing to release strategic reserves.
Barclays Capital expects a "monster" effect this quarter as the crude market tightens by 2.4m barrels a day (bpd), with little extra supply in sight.
Israel Reaches Out to US for Oil and Gas Development
By Jen Alic - OilPrice.com
Israel Natural Gas Lines' is energetically courting US majors to develop its oil and gas industry, inviting firms specializing in exploration, production, pipeline construction, logistical services, workforce training and other related subsectors to join in the bonanza.
This week, Israel announced that construction has begun on a submerged turret loading buoy linking LNG imports to the country's gas transmission system as the country seeks to become and LNG exporter.
Venezuela refinery explosion death toll rises to 39 President Hugo Chávez orders investigation after pre-dawn blast at country's largest oil facility injures at least 80
AP - Guardian.co.uk
At least 39 people have been killed and more than 80 injured after ahuge explosion tore through Venezuela's biggest oil refinery in one of the deadliest disasters to hit the country's oil industry.
Bystanders posted video on the net showing balls of fire rising over the Amuay refinery in Punto Fijo, among the largest in the world.
Government officials pledged to restart the refinery within two days and said the country has plenty of fuel to meet domestic needs as well as export commitments.
Deadly Venezuela Refinery Blast
Likely To Increase Demand For U.S. Gasoline
By Christopher Helman, Forbes.com
The death toll has risen to 26 in a giant explosion at the Parajuana Refinergy in Venezuela. The injured number more than 80, and the blast, thought to have been caused by a gas leak, also damaged homes nearby. Reutersreports that a 10-year-old child was among the dead.
The explosion, at Venezuela's largest refinery, located near the northwest city of Punta Fijo, looks certain to reduce production of gasoline there for some time as an investigation and repairs take place. This could be a significant blow to Venezuela. The Parajuana complex is an integration of two refineries, and has a processing capacity of 940,000 barrels per day, according to Bloomberg data. This accounts for roughly 75% of Venezuela's domestic refining capacity.
Securities and Exchange Commission
Passes Key Tax Disclosure Ruling
By Jen Alic - OilPrice.com
The US Securities and Exchange Commission on Wednesday passed in a 2 to 1 vote a requirement for American oil and mining companies to disclose taxes and fees paid to foreign governments with the objective of fighting corruption.
Tied to the Dodd-Frank financial reform law and lauded by human rights and transparency groups, the requirement applies to over 1,000 companies doing business overseas.
Specifically, companies doing business with foreign governments will be required to disclose any payment over $100,000, including dividends and construction improvements, beginning in fiscal year 2014.
U.S. Power Supply Will be Impacted by Water Shortages
BY RICHARD MILLS - FinancialSense.com
Electricity enables our modern life style - the degree of dependency we have built into our lives in regards to "power on demand" has raised expectations that plentiful electricity will be available to us 24/7.
"Electrical power, in the short span of two centuries, has become an indispensible part of modern day life. Our work, leisure, healthcare, economy, and livelihood depend on a constant supply of electrical power. Even a temporary stoppage of power can lead to relative chaos, monetary setbacks, and possible loss of life. Our cities live on electricity and without the customary supply from the power grid, pandemonium would break loose." Dieselserviceandsupply.com
According to a 2008 Lawrence Berkeley National Laboratory study the most reliable state electrical power supply in the US is interrupted only 92 minutes a year, the worst is 214 minutes - these figures don't include power outages blamed on natural disasters.
Apple patent win a wake-up call for industry Apple's victory over Samsung is unlikely to spur its market share or innovation, while rivals might be prompted to get more creative.
By Richard Blackden - Telegraph.co.uk
It was not a good start to the weekend for Samsung chief executive Kwon Oh Hyun. Sixteen hours and almost 6,000 miles away, a nine-person jury in San Jose, California, was delivering a sweeping victory for Apple in its long-running legal fight against Samsung.
The South Korean company was found to have violated six of the seven patents Apple had sought to protect in court, with the jury also upholding the validity of all seven of them. They covered aspects of the design of Apple's iPhone as well as software that is also used in Android, the operating system created by Google that Samsung uses.
Hell bent on making The Singularity pseudo-miracle happen... Scientists Successfully 'Hack' Brain To Obtain Private Data
By Peter V. Milo - Seattle.CBSLocal.com
BERKELEY, Calif. (CBS Seattle) – It sounds like something out of the movie "Johnny Mnemonic," but scientists have successfully been able to "hack" a brain with a device that's easily available on the open market.
Researchers from the University of California and University of Oxford in Geneva figured out a way to pluck sensitive information from a person's head, such as PIN numbers and bank information.
The scientists took an off-the-shelf Emotiv brain-computer interface, a device.
Red Sox And Dodgers Make A Quarter Billion Dollar Bet
By Mike Ozanian, Forbes Staff
The Boston Red Sox and Los Angeles Dodgers have completed one of the biggest trades in the history of Major League Baseball. How big? It would not be absurd to say the financial impact could eventually be as significant as the sale of Babe Ruth to the New York Yankees following the 1919 season, which ignited the rise of the Bronx Bombers into the most valuable and profitable team in the history of Major League Baseball.
The Red Sox are sending first baseman Adrian Gonzalez, pitcher Josh Beckett, injured outfieldCarl Crawford, utility-man Nick Punto and $12 million of billionaire owner John Henry's cash to the Dodgers for first baseman James Loney and four youngsters: pitchers Rubby De La Rosa and Allen Webster, middle infielder Ivan DeJesus Jr. and utility-man Jerry Sands. The trade shifts about a quarter billion dollars of guaranteed payroll from the Red Sox to the Dodgers, according to Cot's Baseball Contracts.
Tropical Storm Isaac Should Rival Hurricane Katrina
By Michael Barak, Joseph Bastardi and Alan Lammey - Forbes.com
On August 24th, we warned on Forbes that Tropical Storm Isaac could pose a threat to energy markets and even rival Hurricane Katrina in its destructive power (Could Tropical Storm Isaac Turn Into Another Katrina?). While the computer models are still showing a substantial spread in solutions, it appears more likely that Isaac will make landfall somewhere near the Louisiana, Mississippi Gulf Coast. This track will provide the storm more time to intensify over the very warm water of the Gulf of Mexico.
Republican National Convention pushed back until Tuesday
By Garrett Quinn - Reason.com
Tampa - The threat of Tropical Storm Isaac has forced Republicans to all but cancel the first day of the their convention. From GOP Chairman Reince Priebus:
Due to the severe weather reports for the Tampa Bay area, the Republican National Convention will convene on Monday August 27th and immediately recess until Tuesday afternoon, August 28th, exact time to follow.
RNC chairman:
Tampa convention will go 'full steam ahead on Tuesday'
By Jonathan Easley - TheHill.com
Republican National Committee (RNC) Chairman Reince Priebus, who announced Saturday night that the GOP would cancel Monday's convention events due to Tropical Storm Isaac, said he wasn't worried that the fallout from the storm might diminish the party's message.
"We're 100 percent full steam ahead on Tuesday," Priebus told Candy Crowley on CNN's State of the Union on Sunday.
Jim Rogers: It's Going To Get Really
"Bad After The Next Election"
By Terry Weiss, Money Morning
In a riveting interview on CNBC, legendary investor Jim Rogers warned Americans to prepare for "Financial Armageddon," saying he fully expects the economy to implode after the U.S. election.
Rogers, who for years has been an outspoken critic of the Feds policies of "Quantitative Easing," says the world is "drowning in too much debt." He put the blame squarely on U.S. and European governments for abusing their "license to print money." In the U.S. alone, the national debt has surged to nearly $16 trillion, that's more than $50,000 for every American man, woman and child.
OBAMA ADDS MILITARY HEROES TO 'ENEMIES LIST'
Breitbart News - Breitbart.com
President Barack Obama has added military heroes to his "enemies list," singling out veterans' groups such as Special Operations for America and Veterans for a Strong America on his campaign website, much as he singled out donors to Republican rival Mitt Romney for attack. Several veterans' groups havespoken out against the Obama administration's habit of taking credit for the Osama bin Laden raid and leaking military secrets for political gain--so the Obama campaign is trying to shoot the messenger.
What The Left Won't Tell You About The Boom In U.S. Gun Sales
By Frank Miniter, Contributor - Forbes.com
As gun sales surged in early 2009 the going joke among employees of gun manufacturers was that PresidentBarack Obama was the "greatest gun salesman of all time." The trouble with this backhanded complement, however, is Left-leaning news outlets have since used it to avoid something that really scares them.
As ABC put it, Americans are buying more Glocks and Berettas simply because they fear "a second Obama administration might restrict gun ownership." Their reporting conveniently stops right there.
U.S.-Japan Security Alliance Is Obsolete
Leaving Japan Caught between China and the U.S.
in a New Asian Order
By Stephen Harner, Contributor - Forbes.com
Has the U.S.-Japanese security alliance been a factor in the dangerous dispute between Japan and China over the Senkaku islands, controlled by Japan but claimed by China and called Diaoyutai? And is the alliance going to be a factor in any future resolution or management of this dispute? To anyone closely watching the situation, the answer to both of these questions is clearly "no."
But in observing the irrelevance of what both the U.S. and Japan continue to claim is the cornerstone of our bilateral relationship, as well as the of the whole structure of the U.S.-dominated security system in Asia (the crux of "The Armitage-Nye Report: U.S.-Japan Alliance: Anchoring Stability in Asia" fromWashington, D.C.'s CSIS, of which more below), we must ask: "If not, why not?"
The Cordesman Criteria
By Charles Krauthammer - PatriotPost.us
WASHINGTON -- Either Israel is engaged in the most elaborate ruse since the Trojan Horse or it is on the cusp of a pre-emptive strike on Iran's nuclear facilities.
What's alarming is not just Iran's increasing store of uranium or the growing sophistication of its rocketry. It's also the increasingly menacing annihilationist threats emanating from Iran's leaders. Israel's existence is "an insult to all humanity," says President Mahmoud Ahmadinejad. "Anyone who loves freedom and justice must strive for the annihilation of the Zionist regime." Explains the country's Supreme Leader Ayatollah Ali Khamenei, Israel is "a true cancer tumor on this region that should be cut off."
Syrian regime accused of killing hundreds in Daraya massacre At least 200 dead in poor Sunni community on outskirts of capital targeted by President Bashar al-Assad's troops
By Julian Borger, diplomatic editor - Guardian.co.uk
The Syrian civil war reached new heights of brutality on Sunday with government troops accused of massacring civilians a few miles from Damascus on a weekend which saw one of the worst reported death tolls in 17 months of conflict.
Opposition groups claimed more than 200 bodies had been found in Daraya, a poor Sunni community on the south-west outskirts of the capital, after Syrian troops had stormed the town on Saturday, going door to door in what President Bashar al-Assad's regime described as a counter-terrorism operation. Opposition and human rights activists claimed many of the dead were civilians.
Netanyahu 'Determined to Attack Iran'
Before U.S. Elections, Israeli News Says Israel's Channel 10TV reporter adds: 'I doubt Obama could say anything that would convince PM to delay a possible attack'
By TIMES OF ISRAEL STAFF
Israel's Prime Minister Benjamin Netanyahu "is determined to attack Iran before the US elections," Israel's Channel 10 News claimed on Monday night, and Israel is now "closer than ever" to a strike designed to thwart Iran's nuclear drive.
The TV station's military reporter Alon Ben-David, who earlier this year was given extensive access to the Israel Air Force as it trained for a possible attack, reported that, since upgraded sanctions against Iran have failed to force a suspension of the Iranian nuclear program in the past two months, "from the prime minister's point of view, the time for action is getting ever closer."
War with Iran could cost Israeli economy $42 billionProjections reported by Channel 10 include a 10% loss for businesses over 5 years, and NIS 39 billion in lost work
By GREG TEPPER - TIMES OF ISRAEL
war between Israel and Iran could cost the Israeli economy 167 billion shekels, or nearly $42 billion, Channel 10 reported on Sunday citing estimates by Business Data Israel, Ltd., a business information group.
According to the projections, lost work would cost the state NIS 39 billion or nearly $10 billion. The report did not clarify whether this took into account reserve soldiers who are called to duty and must leave their jobs, people not working due to continuous missile assault on Israeli population centers, or both.
Obama asks eurozone to keep Greece in
until after election day US officials are worried that if Greece exits the eurozone, it will damage President's election hopes
By OLIVER WRIGHT - Independent.co.uk
The Obama administration will pressure European governments not to let Greece fall out of the eurozone before November's Presidential elections, British Government sources have suggested.
Representatives from the International Monetary Fund, the European Central Bank and the European Commission are due to arrive in Athens next month to assess Greece's reform efforts.
'Greece is bankrupt. Full stop. Game over'
It's 'crunch time' for Greece right now - the German leader and French president are working out whether to grant Athens the 'breathing space' it says it needs to sort its finances out.
'Gold factoring in potential Fed QE but not aggressively yet'
NEW YORK (Commodity Online): The recent rise in gold prices suggest that expectations for more Federal Reserve quantitative easing are being priced in, yet the market has not been overly aggressive, wary of "getting too far ahead of itself in terms of QE expectations," said Union Bank of Switzerland (UBS) in a commodity briefing.
Traders later Wednesday will be scrutinizing minutes of the last Federal Open Market Committee meeting for clues on whether to expect further accommodation. At the end of the month, the Fed holds its annual Jackson Hole, Wyo., symposium, which officials used to signal QE two years ago. Then the FOMC meets again next month.
Gold Staging Technical Breakout
As Market Continues Reaction To FOMC Minutes
Forbe.com
(Kitco News) – Gold futures are staging a technical-chart breakout Thursday, moving above their highs for the summer and the 200-day moving average in a continuing response to dovishly construed minutes of the Federal Open Market Committee released late Wednesday.
"Technically, we're seeing a breakout above the 200-day moving average and it's prompted by more QE (quantitative-easing) talk and the fact that the structure of the dollar looks terrible right now," said Charles Nedoss, senior market strategist with Kingsview Financial.
Why A Gold Supply Crisis Looms?
By Jeff Nielson - EFTDailyNews.com
The World Gold Council recently released its second quarter statistics on gold "demand and supply trends". For those not familiar with the WGC, it is an "industry trade group" composed of large-cap gold miners who love bankers.
How much do these mining companies love bankers? So much that they allow the bankers to keep all the records for their sector, and pretty much do all of their of their promotion to the world. It is the WGC which elevated two private "consultancies" (of bankers) – GFMS and the CPM Group – to the status of quasi-official record-keepers for the entire global gold (and silver) industry.
Is the golden era of Silver about to dawn?
By Rakesh Neelakandan - CommodityOnline.com
The time before monetary easing contributes to a period of uneasiness. Time after easing contributes to a binge.
It is because Quantitative Easings, wherever they are carried out ultimately find their way to commodities and equities. Now China, in an anticipated phase of deceleration predicted for August is expected to announce stimulus measures. US Federal Reserve minutes from the latest meeting of policy honchos is indicative of a round of QE 3 for many.
So, what is the outcome of these measures as and when they happen? One word: inflation!
US job data drives MCX Silver to dizzying heights
AHMEABAD (Commodity Online): US job data drives MCX silver up by 2..77% to 56888 levels. State unemployment claims climbed 4,000 to a seasonally adjusted 372,000, the Labor Department said on Thursday. That was the highest level in five weeks. Gold also climbed 1.05% to 30639 levels.
Silver on the Comex is up by 3.24% at $30.515 and gold by 1.6% at $1664.55.
Fed joins stimulus party as global trade slumps All three major blocs of the world economy have shifted gears dramatically over the last month, preparing a fresh blast of stimulus to combat the sharpest contraction in global trade since the 2008-09 crisis.
By Ambrose Evans-Pritchard - Telegraph.co.uk
The US Federal Reserve appears poised for a third round of quantitative easing (QE) as soon as early September, joining Europe and China in concerted global stimulus.
The Fed's latest minutes show broad support for fresh bond purchases – probably mortgage bonds – unless signs of "substantial and sustainable strengthening" emerge soon. Paul Ashworth from Capital Economics said QE3 looks like a "done deal" since little is likely to change between now and the next Fed meeting.
Will Bernanke Pull The Trigger Or Pocket His Peashooter?
Forbes.com
The Federal Reserve released the minutes of its July 31-August 1 monetary policy meeting Wednesday and offered what seemed like a strong signal that Ben Bernanke and his colleagues are about to hit the gas on more stimulus.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon," the minutes read, helping the stock market cut losses Wednesday afternoon. Traders seemed much more concerned with the rest of that remark Thursday though: "unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery."
Fed's Finger On The Trigger
Markets will hear from chairman Ben Bernanke on August 31st about whether QE3 is around the corner.
PIMCO's Gross says Fed easing "almost a done deal:" CNBC
(Reuters) - Bill Gross, co-chief investment officer of bond giant PIMCO, told CNBC on Thursday that another round of economic stimulus from the U.S. Federal Reserve is "almost a done deal."
Gross, whose Pacific Investment Management Co has an estimated $1.82 trillion in assets, told CNBC that U.S. economic growth is not yet strong enough to dissuade the Federal Reserve from another round of quantitative easing.
Fed's Bullard plays down odds of imminent easing
By Alister Bull
WASHINGTON | Thu Aug 23, 2012 9:10pm EDT
(Reuters) - A Federal Reserve official on Thursday leaned against the impression that the U.S. central bank was locked into easing monetary policy at its meeting next month, noting that economic data had improved in recent weeks.
Minutes of the Fed's July 31-August 1 meeting released on Wednesday had highlighted strong support among policymakers for more action. But St. Louis Federal Reserve President James Bullard told CNBC television that the economic outlook had brightened since that meeting.
Wall Street falls as Fed doubts knock equities
By Chuck Mikolajczak
NEW YORK | Thu Aug 23, 2012 6:24pm EDT
(Reuters) - Stocks fell on Thursday as expectations for quick stimulus action from the Federal Reserve faded and Chinese and euro zone data pointed to a stalling global economy.
Each of the 10 major S&P sectors finished in negative territory, with the economically sensitive materials sector .GSPM the worst performer, down 1.7 percent.
A slump in Hewlett-Packard (HPQ.N) shares weighed on the technology sector, but the S&P 500 stayed above a support level at 1,400, which is seen as a positive sign.
NIRP: The Financial System's Death Knell?
By Eric Sprott & David Baker - GoldSeek.com
On July 18th, 2012, the German government sold US$5.13 billion worth of 2-year bonds at an average yield of -0.06%. Please note the negative symbol in front of that yield number. What this means is that the German government was able to borrow money for less than nothing. When those specific bonds expire in two years' time, the German government will pay back the original $5.13 billion minus 0.06%. Expressed another way, investors knowingly and willingly bid the German government $5.13 billion in exchange for bonds that will pay no interest and are guaranteed to lose them money on expiration.1 Welcome to the new status quo.
[UK] Bank's stimulus plan 'has lined pockets of the rich' Report shows wealthy do 240 times better out of QE than the poor
By BEN CHU - Independent.co.uk
The Bank of England's money-printing programme, intended to revive economic growth, has delivered a massive boost to the wealth of the most prosperous 10 per cent of households in Britain while delivering relatively scant returns for the poorest, a new analysis from the Bank indicated yesterday.
In its report on the effectiveness of its controversial quantitative easing (QE) programme, the Bank said it successfully pushed up share prices and other asset values, delivering an overall boost to the net financial worth of UK households of around £600bn. The Bank said this worked out at an average benefit of around £10,000 per person.
German dip sounds the alarm in eurozone Bloc heads back into recession with ECB under increasing pressure to act
By RUSSELL LYNCH - Independent.co.uk
An alarming August slump for the eurozone giant Germany yesterday heaped more pressure on the European Central Bank to use its financial firepower to tackle the region's lingering debt crisis.
The deepest slide in more than three years for Germany's private sector looks virtually certain to condemn the eurozone to a double-dip recession, according to the financial information firm Markit's latest snapshot of the region's economic health.
Is Germany Entering a Recession?
BY JOHN MAULDIN - FinancialSense.com
Even in August, while nearly all of Europe is on vacation, we find that economies don't get to take vacation. Europe will come back from its holiday and find that nothing has improved and some things have gotten worse. Specifically, Germany looks to be rolling over into recession. In this week's Outside the Box, Charles Gave of GaveKal looks at Deutschland and notes that while it might be able to handle a mild recession, problems will be that much worse in the rest of Europe, which needs a robust German consumer. This letter will print long due to a number of charts.
Fitch is targeted by Italian magistrate Italian prosecutors have compiled a controversial case against Fitch Ratings for allegedly issuing "false and unfounded judgements" against Italy, the latest move in an escalating judicial campaign against "Anglo-Saxon" credit agencies.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Michele Ruggiero, a prosecuting magistrate in Trani, completed a preliminary inquiry against Fitch last week for alleged "market manipulation", according to reports in the Italian press. Il Sole said prosecutors were pushing for a criminal case against Fitch's managing director David Riley and Alessandro Settepani, the group's covered bond chief for southern Europe.
Fitch declined to comment. The Anglo-American agency is owned by the French group Fimalac, making it the most "European" of the Big Three rating powers. Mr Ruggiero has already filed similar charges against officials from Standard & Poor's, including Moritz Kraemer, the head of sovereign ratings in Europe.
Spain mulls bailout request
as Merkel calls time on Greek funding
By JULIEN TOYER, TONY PATERSON - Independent.co.uk
Spain is negotiating with eurozone partners over conditions for aid to bring down its borrowing costs, though the country has not made a final decision to request a bailout, three euro zone sources said yesterday.
The favoured option being discussed is that the existing European rescue fund, the EFSF, would purchase Spanish debt at primary auctions while the European Central Bank would intervene in the secondary market to lower yields.
Keiser Report: Liquidity Drought (E331)
In this episode, Max Keiser and Stacy Herbert discuss the fact that we're all cows eating candy during the global liquidity drought and yet Central Bank 'farmers' can't see the ill-effects because the stock markets are at four year highs. In the second half of the show, Max Keiser talks to Dmitry Orlov about 2013: revolutionary travel advisories, economic and supply chain collapse and food stamp lines at Walmart.
Former RBS trader claims 'anyone' at bank could change rate Court documents claim another trader changed Libor submission even though he was part of Japanese yen swap desk in London
By Julia Kollewe - Guardian.co.uk
A former trader for Royal Bank of Scotland Group has claimed that the bank's internal checks were so lax that anyone could change Libor rates.
More than a dozen banks, including RBS, are under investigation by regulators in the US, Europe and Asia for suspected rigging of the London interbank offered rate (Libor), which is used to price trillions of dollars of financial products.
RBS may be bigger Libor culprit than Barclays, says MP George Osborne asked to explain state-owned bank's role as former trader claims 'anyone' could rig rate
By Julia Kollewe - Guardian.co.uk
Royal Bank of Scotland's involvement in the Libor rigging scandal could be worse than Barclays' and may force the state-owned bank to pay a bigger fine than its UK rival, an MP has claimed.
John Mann, a Labour MP on the Treasury select committee, said "City insiders" had suggested RBS's involvement may be "noticeably worse" than Barclays'.
Barclays was forced to pay £290m in June by US and British authorities for its role in trying to manipulate Libor, which affect the cost of borrowing for millions of customers around the world.
Keiser Report: Suicidal Skullduggery (E330)
In this episode, Max Keiser and Stacy Herbert discuss further signs of success from the shakedown of Standard Chartered as the City starts firing, while the Street is hiring. Max and Stacy look at some of the help wanted ads and examine the unusually small head of JP Morgan's chief executive. In the second half of the show, Max Keiser talks to Ned Naylor-Leyland of Cheviot Asset Management about unallocated versus allocated gold and silver bullion and permanent backwardation as a sign that everything is breaking down completely in the precious metals market.
Why Government Needs a Diet
By George Will - PatriotPost.us
WASHINGTON -- Because the possibility of effectively supervising government varies inversely with government's size, so does government's lawfulness. This iron law of Leviathan is illustrated by a dispiriting story that begins with the American Recovery and Reinvestment Act of 2009, aka the stimulus, that supposedly temporary response to an economic emergency.
Because nothing is as immortal as a temporary government program, the Communities Putting Prevention to Work (CPPW), a creature of the stimulus, was folded into the Patient Protection and Affordable Care Act of 2010, aka Obamacare. And the Centers for Disease Control and Prevention (CDC), working through CPPW, disbursed money to 25 states and the District of Columbia to fight, among other things, the scourge of soda pop.
Hedge funds are betting on disaster
By Maureen Farrell - Money.CNN.com
Hedge funds are betting on a disaster hitting the financial markets within the next several quarters, with managers holding onto historic levels of cash.
That so-called dry powder gives them the cash they need to quickly jump in if markets sell off, according to numerous hedge fund managers and industry consultants.
"Most hedge funds I see are carrying lower market exposure than I've seen in some time," said Brad Balter, founder of investment advisory firm Balter Capital Management. "This is not to say they are net short. They simply want to conserve their buying power and be ready for major opportunity sets that may arise."
Fiscal Choice For America: Gloom Or Doom, Says CBO
By Roberton Williams - Forbes.com
The Congressional Budget Office's summer budget update charts two undesirable paths for the nation's economic and fiscal health next year. Call them Gloom and Doom.
Gloom is what happens if the tax increases and government spending cuts scheduled to arrive in January actually occur. CBO says that would drive the economy back into recession in 2013 and push unemployment above 9 percent. But there's some sunshine too: the federal deficit would drop sharply—by nearly half in 2013 alone—and would be under 1 percent of GDP by 2016 (dark blue bars in graph). The federal debt would decline from 73 percent of GDP this year to 59 percent in 2022. And the economy would resume growing in a year or so. Long-term gain for short-term pain.
The Cheapest Generation Objects:
'Cheap and Broke Are Not the Same Thing!'
By Derek Thompson - TheAtlantic.com
My business column in this month's Atlantic with Jordan Weissmann, "The Cheapest Generation," asked whether twentysomethings putting off cars and houses represented a Great Recession trend or a new normal for young people. Here are the best comments -- from Facebook, Tumblr, Twitter, and TheAtlantic.com -- that disagreed with our emphasis that this generation might be choosing to turn away from cars and houses for reasons that were both economic and cultural.
In short, here are some of the best comments that said, bluntly: Stop pretending like social trends have anything to do with the weak auto and housing market. It's the Great Recession, stupid.
NOT CHEAP; FRUGAL
What does it take to be middle class?
Americans can't quite agree.
Posted by Brad Plumer - WashingtonPost.com
There's no single, universal definition of what counts as "middle class." A new report from the Pew Research Center defines the middle class in the United States as any adult in a household whose income sits between 66 percent and 200 percent of the national median (adjusted for the size of the household). That encompasses about half of all American adults.
And yet, as Catherine Rampellperceptively notes over at Economix, Americans in different income groups can have wildly varying perceptions of whether they're in the middle class. Overall, Pew found that 49 percent of Americans considered themselves "middle class." That's about what you would expect. But there were significant variations within income tiers.
Big Income Losses for Those Near Retirement
By CATHERINE RAMPELL - NYTimes.com
Americans nearing retirement age have suffered disproportionately after the financial crisis: along with the declining value of their homes, which were intended to cushion their final years, their incomes have fallen sharply.
The typical household income for people age 55 to 64 years old is almost 10 percent less in today's dollars than it was when the recovery officially began three years ago, according to a new report from Sentier Research, a data analysis company that specializes in demographic and income data.
Household income drops sharply Household income is below recession levels, report says
By Michael A. Fletcher - WashingtonPost.com
Household income is down sharply since the recession ended three years ago, according to a report released Thursday, providing another sign of the stubborn weakness of the economic recovery.
From June 2009 to June 2012, inflation-adjusted median household income fell 4.8 percent, to $50,964, according to a report by Sentier Research, a firm headed by two former Census Bureau officials.
Obama's Death Knell for the Elderly
By Sharon Sebastian - PatriotPost.us
Under Barack Obama, America is facing an explosion of the elderly poor. The facts are in, the strategy revealed. If Barack Obama and the Democrats win the upcoming election, an ugly era of population engineering, the steady elimination of our elderly through Obamacare will lead to a crisis in humanity. In addition to Social Security, America's retirees rely on varied combinations of their savings, investments, company pensions, and Medicare for their existence, all of which are targets of Obama's war on the elderly.
During a 2008 televised political debate candidate Barack Obama was asked were he to become President, where would he first cut spending. Obama stalled and stammered hoping the clock would run out so he could avoid answering. The debate moderator again demanded an answer. Seconds before the buzzer sounded, a reluctant Obama answered, "Medicare." Sounding along with that buzzer was a death knell for American seniors. Obama had set his sights on America's greatest generation and those following swiftly on their heels. At a 2010 House Retreat, when asked directly, Obama responded to now Republican Vice-Presidential nominee Paul Ryan, that his answer to fixing Medicare is Obamacare. During a CBS 60 Minutes interview, citing numbers from the Congressional Budget Office, Republican Presidential nominee Mitt Romney pointed out that Obama's destruction of Medicare is well underway, "There's only one president that I know of in history that robbed Medicare -- $716 billion to pay for a new risky program of his own that we call Obamacare."
Simple Fix for Social Security One Simple Measure That Would Save Social Security and More
By Joe Firestone - NewEconomicPerspectives.org
The Fiscal Times is a digital rag funded by Peter G. Peterson to propagandize the ideology of neoliberal austerity. Today, a Post by Josh Boak highlighted the proposal of "fixing" Social Security by lifting the cap on payroll taxes.
"Social Security already appears to be running aground, just two decades before the program — which accounts for about 20 percent of federal spending — is projected to crash into insolvency.
"The program launched during the Great Depression — keeping millions of senior citizens from sliding into poverty — has steadily been paying out more in benefits than it collects in taxes, relying on the interest earned on federal bond holdings to help bridge the difference. Social Security costs are estimated to total $789 billion this year, paid for by $623 billion in payroll taxes.
The God Particle: I Don't Think So
By Dr. Robert R. Owens - PatriotPost.us
Arrogance is a funny thing. Not Ha Ha funny, but funny none-the-less. I was watching one of America's leading physicists the other day, a man made famous by his co-authorship of String Theory and made popular by his ability to make people without a scientific education believe they understand what he's talking about. He repeatedly made the statement that today physicists understand 99.9% of how the Universe works and that the .01% that was missing is the never before seen but previously postulated Higgs Boson particle popularly known as the god particle.
GM Goes From Bad to Worse Despite Obama Bailout
By Michael Barone - PatriotPost.us
Readers with long memories may recall that Charles E. Wilson, president of General Motors and nominee for secretary of defense, got into trouble when he told a Senate committee, "What is good for the country is good for General Motors, and what's good for General Motors is good for the country."
That was in 1953, and Wilson was trying to make the point that General Motors was such a big company -- it sold about half the cars in the U.S. back then -- that its interests were inevitably aligned with those of the country as a whole.
The Truth About Gasoline Price Volatility
By Gary Hunt - OilPrice.com
Nothing infuriates Americans more than volatile, spiking gasoline prices. Often the causes given for gasoline price hikes seem contrived. Iran and Israel trade harsh words in press reports and before the ink is even dry of the page oil prices tick up. Word of a fire at an oil refinery is enough to send prices shooting up as high as the flames on the cracker —and just as fast.
Those price spikes never seem to come down nearly as fast as they shoot up. Politicians are quick to blame oil companies for gouging customers, speculators for manipulating markets, traders for withholding supply.
The truth about gasoline price volatility is both a little more complicated and yet quite simple. The factors that seem to have the most impact on gasoline prices include:
Oil near $100. Thanks a lot, Fed!
By Paul R. La Monica - Money.CNN.com
Federal Reserve chairman Ben Bernanke may or may not give the market more hints about a possible third round of bond purchases at his speech in Jackson Hole next week. But investors are clearly betting on more quantitative easing or other forms of stimulus. Just look at what's going on in the commodity and currency markets.
The price of crude oil is getting dangerously close to $100 a barrel again. It hasn't been above that level since May. The euro has strengthened against the dollar as of late, partly due to hopes that the European Central Bank will step in and buy more Spanish bonds and also because of rising expectations for QE3. If the Fed turns on the printing presses so that Bernanke can take yet another helicopter ride, that could further weaken the dollar and push the prices of oil and other commodities higher.
Keystone pipeline clears a hurdle
By Steven Mufson - WashingtonPost.com
A judge in Lamar County, Texas, ruled Wednesday night that TransCanada's Keystone XL pipeline has the right of eminent domain, rejecting a plea by farm manager Julia Trigg Crawford and dealing a blow to landowners and environmentalists who have been trying to block construction of the pipeline.
The ruling by Judge Bill Harris removes yet another potential obstacle for TransCanada, which already has permits from the Army Corps of Engineers for the southern leg of the pipeline, which starts in Cushing, Okla., and runs to Port Arthur, Texas. TransCanada has said it will start building as soon as possible.
Aurora shooting suspect was banned from campus over threats James Holmes defense faces off with prosecution over release of a notebook sent to University of Colorado psychiatrist
AP - Guardian.co.uk
Prosecutors say the suspect in the Aurora theater shooting made threats and was banned from the University of Colorado after failing a key exam six weeks earlier.
They made the accusations about James Holmes in court Thursday as they tried to convince a judge to let them see records from the university, where Holmes had been a graduate student.
Holmes is accused of killing 12 people and wounding 58 others in the 20 July shooting at an Aurora theater.
Why Cybercrime Is Such Easy Money
By: Rick Ackerman - GoldSeek.com
Web-based crime is spinning out-of-control, presumably because it's so hard to get caught and because there's an unlimited supply of rubes who are easy to find. Here's a test to determine whether you may be a rube yourself. Would you follow the instruction if this message popped up on your cell phone: "Click here to claim your $1000 gift coupon"? That's what we thought. Of course you wouldn't. Only a retiree with a brand-new smart phone would be that stupid. But suppose the sender had identified itself as Best Buy, and that you'd made a purchase at a Best Buy store just 15 minutes earlier? This is where the gullible and the feeble-minded get culled from the pack. A quick thank-you note from a store where you've just made a purchase (and which has stored your phone number) hardly seems implausible, right? But how about the $1000 prize? We took a pass, perhaps because we've never hit the lottery for more than $6. Our first thought about the offer was that he outcome would probably be no different if, instead of following the link, we were to mail our wallet, credit cards, house key and Social Security number to some Russian hacker.
Big brother's eyeballs - network cameras; public & private Trapwire: It's Not the Surveillance, It's the Sleaze
By Noah Shachtman - Wired.com
Ever since WikiLeaks began releasing a series of documents about the surveillance system Trapwire, there's been a panicked outcry over this supposedly all-seeing, revolutionary spy network. In fact, there are any number of companies that say they comb through video feeds or suspicious activity reports in largely the same way that Trapwire claims to do. What's truly extraordinary about Trapwire was how it was marketed by the private intelligence firm Stratfor, whose internal e-mails WikiLeaks exposed.
US government developing ultimate cyber weapon; Prime-factoring quantum computing makes encryption obsolete
By Mike Adams - PakalertPress.com
The U.S. government is making steady progress on a game-changing technology that would give it the most powerful weapon ever devised in the realm of cyber warfare and information dominance. The weapon is called a "prime-factoring quantum computer," and a small-scale version of the game-changing technology has already been demonstrated by researchers at UC Santa Barbara, where qubits — quantum bits ofcomputational potential — factored the number 15 into its prime factors three and five.
So what, you say? Can't any fifth grader do the same thing?
Google Crunches One Trillion Pieces of Data With Single Click
BY CADE METZ - Wired.com
Yes, Google treats its latest data center technologies as the most important of trade secrets. But when these creations get a little older, the company is happy to at least describe them to the rest of the world. Sometimes.
"We try to be as open as possible without losing our competitive advantage," Urs Hölzle, the Grand Poobah of Google's data centers, told us earlier this summer, as we discussed the research papers that occasionally emerge from Google providing a peak into its internal infrastructure.
For Russians, August is the cruelest month
By Marc Bennetts - Special to The Washington Times
Moscow — With the end of August looming, Russians are counting down the days to what has been, so far, a rare exception to the unwritten rule that the eighth month of the year invariably brings tragedy and upheaval to the largest country on Earth.
"This month is nicknamed 'Black August' for a good reason," said Tatiana Loskova, a lawyer in Moscow. "We've come to expect anything at this time of year, from terrorist attacks to political crisis."
"In selecting men for office, let principle be your guide. Regard not the particular sect or denomination of the candidate -- look to his character." --Noah Webster (1789)
There's a major storm heading for Tampa.
No, I'm not talking about Isaac, the storm we hope will stay offshore or dissipate before making landfall. (Memo to Republicans: When planning future conventions, consider a location somewhere outside of hurricane alley at the height of hurricane season -- a region that has suffered considerable loss of life and hundreds of billions of dollars in storm damage over the last two decades.)
Obama to break recent precedent, will stump during RNC
By Dave Boyer-The Washington Times
Incumbent presidents usually lay low during their opponents' nominating conventions, but not so with President Obama, who will wage an ambitious campaign next week to coincide with the Republican National Convention.
While Republicans meet in Tampa., Fla., to nominate Mitt Romney for president, Mr. Obama will be trying to claim some of the media spotlight with campaign trips to college campuses in Ames, Iowa, and Fort Collins, Colo., on Tuesday. He will campaign in Charlottesville, Va., on Wednesday, the third day of the Republican convention.
'China real target for US missile shield in Asia'
Not satisfied with its missile shield in Europe - Washington has announced plans for a similar weapons system in Asia.
A Pentagon official pointed at a perceived threat from North Korea as the main justification.
But political activist and head of the New Patriotic Alliance, Renato Reyes, says that's a paper thin excuse.
North Korea Progresses on New Nuclear Reactor
By Joao Peixe - OilPrice.com
Satellite images reportedly show significant progress on the construction of a new reactor that is believed to be a front for fuel production for nuclear weapons, news agencies citedanalysts as saying on Thursday.
The reactor under construction is an experimental light-water reactor, which could be used to boost North Korea's nuclear stockpile at a time when Kim Jong-un is working to consolidate his power. According to the satellite imagery, Pyongyang has now placed a 69-foot dome on top of the reactor building, but a Jane's expert said the reactor was still several years away from completion.
Top U.S. General:
We Don't Know Why Afghan Troops Are Killing Us
By Spencer Ackerman - Wired.com
General John Allen, the top U.S. commander in Afghanistan, said he still doesn't know why at least 10 NATO troops have died in the last two weeks at the hands of the Afghan forces they mentor. He suspects it may have something to do with asking those Afghans to perform dangerous operations during the recent Muslim holy month. Maybe.
If that doesn't sound like a positive sign for the decade-long war — after all, the entire American strategynow depends on turning security over to the Afghans — Allen wasn't in a mood to sugar-coat Afghanistan. In what may have been the bluntest press conference delivered by a top commander since the U.S. went to war in 2001, Allen told Pentagon reporters he expected Afghanistan will still suffer from "violence" after U.S. combat ends in 2014; that Hamid Karzai's government has to act "now" to govern parts of the country that NATO has taken from the Taliban; and that a reduction in violence in the country since last year "may not be statistically significant."
IAE, Iran to Meet in Vienna
By Charles Kennedy - OilPrice.com
The UN's International Atomic Energy Agency (IAEA) has said that Iranian representatives have agreed to meet with the agency in Vienna on Friday in another round of nuclear talks.
Shortly after the scheduled meeting, the UN agency is expected to release its quarterly report on Iran's nuclear program and the progress of negotiations.
Michael Levy interviews Doug Casey Why the Dam is Finally Breaking on the US Dollar
Maybe Iran wants a bomb. Maybe not.
But blocking it out of the SWIFT system, in other words cutting it off from using the US dollar for its oil trades (among other things) because we suspect it does, simply meant that countries that still want to trade with Iran and which are not beholden to our political whim, have found ways of doing business without a dollar in sight.
West could intervene on use of chemical weapons in Syria
By ALISTAIR DAWBER - Independent.co.uk
David Cameron joined Barack Obama yesterday in warning the Syrian regime that any use of chemical weapons would be "unacceptable" and hinted that it could prompt Western military intervention.
Western leaders – criticised for failing to find a solution to the civil war, which has claimed 17,000 lives – have conceded that diplomatic efforts to end the crisis have been stymied by countries such as Russia which are keen to avoid Washington and London gaining leverage in Syria.
US, UK, French elite units on standby
for seizing Syrian chemical weapons
DEBKAfile
US C130 transports stand ready at Middle East air bases to fly into Syria US elite units especially trained in combat against chemical and biological weapons and tactics for securing their arsenals. Western intelligence sources reported Thursday, Aug. 23 that those units are on standby at bases in Israel and Jordan. Their assignments are to engage Syrian troops attempting to move those unconventional weapons systems to battle fronts or Hizballah and to prevent them falling into the hands of radical Islamic rebel fighters, especially Al Qaeda.
Those elite units have been issued with special equipment for chemical and biological warfare including anti-contamination suits. The transports are also fitted with purification equipment for operating in polluted terrain.
US and Turkey meet to discuss Syrian chemical weapons Washington moves to reassure Nato ally, with reports emerging of Pentagon plan to guard or destroy Syria's stockpiles
By Julian Borger - Guardian.co.uk
US military and intelligence officials met their Turkish counterparts in Ankara on Thursday to discuss ways to counter the threat of Syrian chemical weapons, as the impact of the civil war continued to spread across Syria's borders.
The Ankara meeting came as David Cameron supported Barack Obama's threat of possible military intervention in Syria if the regime used chemical weapons. Reports from the US suggest the Pentagon has plans to dispatch special forces teams to secure or destroy chemical weapon stockpiles if there is a danger they might fall into the hands of extremist groups.
Venezuela Ramps up China Oil Exports Unsettling Washington
By John C.K. Daly - Oilprice.com
The biggest geostrategic change of the past decade overlooked by Washington policy wonks in their fixation on their self-proclaimed "war on terror" is that Latin America has been throwing off the shackles of the Monroe Doctrine.
These ignored developments may well soon refocus Washington's attention on the Southern Hemisphere, as Venezuela's President Hugo Chavez reorients his country's to China.
It is not an inconsiderable element of concern for the Obama administration. According to the U.S. Energy Administration, the United States total crude oil imports now average 9.033 million barrels per day, with the top five exporting countries being Canada (2.666 mbpd), Mexico (1.319 mbpd), Saudi Arabia (1.107 mbpd), with Venezuela in fourth place at 930 thousand barrels per day. Note that two of America's top four energy importers are south of the Rio Grande.
Three Minutes to Midnight
By Ken Blackwell - PatriotPost.us
The national media was clearly tired of the Rev. Jeremiah Wright rants broadcast over and over again on talk radio and shown on FOX News four years ago. The press was only too happy when candidate Barack Obama disavowed the man he said he could never disavow. Well, that's over.
Clearly, they were tired of "America's chickens coming home to roost" and the unreverend clergyman's appeals for God to d___n America. Voters, too, seemed to have heard enough of it. Fifty-three percent of the American electorate appears to have endorsed the view of 95% of the media: the Reverend Wright is old news. Let's move on.
The Vatican and Alien Connection / Petrus Romanus -
04/04/2012 Tom Horn & Steve Quayle
Steve and Tom Horn guest on Omega Man Radio, Wednesday, April 4, 2012 Topic: Vatican And Alien Disclosure Timed With Petrus Romanus
Hey, Ho, Let's Gold! (So Says The Fed ... And Silver Too)
by Steven P. Orlowski - SeekingAlpha.com
I'm not sure if the Ramones reference will resonate, but I know the gold one will. It has been two weeks since I made the bold proclamation "The Bottom Is In For Gold" so I figured what the heck, I'll shake my tail feathers (Ted Nugent anyone?) and enjoy what may prove to be a longer term victory, especially in light of today's Fed minutes.
That article elicited more than a few responses, most of which were positive. Gold is up more than 2% since then but more importantly it has made some notable technical progress.
'Gold is exploding, Silver catching up'
By CommodityOnline.com
NEW YORK(Commodity Online): Silver on the Comex on Tuesday climbed to a 10 weeks high on Tuesday even as gold prices gained 1.2%, indicating an 'explosion' in the bullion.
"Gold is exploding," said Adam Klopfenstein, a senior market strategist with Archer Financial Services to Wall Street Journal.
"It's starting to seep into investors' minds that you have inflationary prices going on. You're going to have a situation in Europe that's going to require some kind of currency debasement," he said. "Silver was sort of lagging everything really, so we were wondering when it was going to play catch up," Wall Street Journal quoted Frank Lesh, broker and futures analyst with FuturePath Trading.
Gold, Silver And Miners Setting Up For A Rally
by Daryl Montgomery - SeekingAlpha.com
Gold, silver and their mining stocks have been meandering sideways for months, but it looks like the early stage of a rally has begun. Confirmation of a sustainable uptrend hasn't taken place yet and that is the point when it's a good idea to be fully invested. There is enough reason to start accumulating a position, however.
Escape From Debt Slavery With Gold?
by Axel Merk - SeekingAlpha.com
Vice President Joe Biden was accused of racism when suggesting a Romney administration would "unchain banks" that, in turn might put the black audience he was talking to back into "shackles." The political uproar overshadows a reality that knows no racial boundaries. A person in debt is not a free person; a nation in debt is not a free nation. Does it mean those with large bank accounts are free? Not so fast…
We don't want to downplay the horrific crime of slavery, but want to provide food for thought. Debt is often taken on voluntarily; once taken on, however, one is forced to work to pay off one's debt. To be unshackled from banks and creditors, investors may want to consider living debt free and owning gold. Let us explain.
How Volcker Created a Gold Standard w/o Gold
By William Silber - Bloomberg.com
On Aug. 14, 1979, a week after he took office as chairman of the Federal Reserve, Paul Volcker led his first meeting of the Federal Open Market Committee.
"Economic policy," he said, "has a kind of crisis of credibility." As a result, "dramatic action" to combat inflation would not receive public support "without more of a crisis atmosphere."
He did not have to wait long.
A public squabble erupted after a meeting at the Fed on Sept. 18, 1979. The morning began with Volcker's second FOMC meeting as chairman and ended with the committee ratifying his recommendation "to make a little move" up in the federal funds rate. The vote was eight in favor and four against, with three of the four dissenters urging greater tightening. Volcker wanted tighter credit and higher interest rates to fight inflation but knew that some members of the FOMC were worried about a recession, so he emphasized caution.
CBO warns of deep recession
if Congress fails to avert 'fiscal cliff'
By Erik Wasson - TheHill.com
The nonpartisan Congressional Budget Office (CBO) on Wednesday warned the economy will enter a recession next year if the country goes over the so-called fiscal cliff.
In its most dire warning yet about the fiscal cliff, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the George W. Bush-era tax rates expire and automatic spending cuts are implemented.
Recession imminent if 'fiscal cliff' of tax hikes,
budget cuts not averted, CBO says
By Steven Mufson and Lori Montgomery - WashingtonPost.com
The U.S. economy is hurtling toward a recession if Congress fails to avert a series of tax hikes and budget cuts due in January, the Congressional Budget Office said Wednesday, warning that a fiscal impasse would have consequences even more dire than previously forecast.
The CBO's gloom sparked another round of political finger-pointing but failed to cast much of a shadow over financial markets. That's because the Federal Reserve is inclined to act "fairly soon" to boost the slow pace of economic recovery, according to minutes the central bank released Wednesday. Moreover, new data showed signs of modest improvement in the housing market.
CBO: U.S. Is on Track
for a Terrible 2013 Recession (Unless Congress Acts)
by Derek Thompson - TheAtlantic.com
As a general rule, the U.S. Congress does nothing, except to avoid the consequences of doing nothing. That's why today's report from the Congressional Budget Office is so important: It states clearly what happens if nothing happens between now and January. The answer is, well, budgetpocalypse.
CBO projects that the so-called "fiscal cliff" -- a double-whammy of tax hikes and spending cuts -- in early 2013 will produce a short and sharp recession followed by rising unemployment throughout the entire year. If you want to know why the Do-Nothing Congress will act out of character by January 1, 2013, read this report.
Fed looks set to ease fairly soon barring swift rebound
By Pedro da Costa and Alister Bull
WASHINGTON | Wed Aug 22, 2012 5:28pm EDT
(Reuters) - The Federal Reserve is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably, minutes from the U.S. central bank's latest meeting suggested.
While the July 31-August 1 meeting occurred before some encouraging economic data, including a stronger-than-expected rise in July payrolls, policymakers were pretty categorical about their dissatisfaction with the outlook, according to the minutes released on Wednesday.
Federal Reserve minutes:
Many members want action 'fairly soon' to boost economy
By Steven Mufson - WashingtonPost.com
Minutes of the last meeting of the Federal Reserve reveal that many board members see the need for additional monetary action "fairly soon" to boost the pace of economic recovery.
The minutes also show that the Fed staff and many of its board members expect inflation and interest rates to remain low in 2014 as a result of slack in the economy.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes said.
Federal Reserve prepared to take action
if US economy does not show growth Minutes from Fed meeting show growing support for action as US recovery remains weak ahead of November election
by Dominic Rushe - Guardian.co.uk
The Federal Reserve is prepared to act "fairly soon" unless the economy shows substantially stronger growth, according to minutes of the Fed's last meeting.
With the US recovery still looking fragile, the Federal Open Market Committee (FOMC) minutes, released after the customary three-week lag, show growing support for action.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," according to the minutes.
Quantitative Easing: The Ultimate Faustian Bargain
by Scott Minerd - SeekingAlpha.com
In Goethe's 1831 drama Faust, the devil persuades a bankrupt emperor to print and spend vast quantities of paper money as a short-term fix for his country's fiscal problems. As a consequence, the empire ultimately unravels and descends into chaos. Today, governments that have relied upon quantitative easing (QE) instead of undertaking necessary structural reforms have arguably entered into the grandest Faustian bargain in financial history.
Treasury 10-Year Yields
Tumble Most Since June After Fed Minutes
Susanne Walker - WashingtonPost.Bloomberg.com
Aug. 22 (Bloomberg) -- Treasury 10-year yields slid the most in almost three months after minutes of the Federal Reserve's last meeting showed many policy makers said additional stimulus would probably be needed soon unless the economy shows signs of a durable pickup.
U.S. 30-year yields fell the most in seven weeks as the central bank bought $1.8 billion of longer-term Treasuries as part of an effort to cap borrowing costs. Bill Gross, who runs the world's biggest bond fund at Pacific Investment Management Co., wrote on Twitter there's an 80 percent chance of a third round of Fed debt purchases under quantitative easing and an extension of the pledge to keep interest rates at almost zero.
Will FOMC Minutes Sway The Dollar?
by Kathy Lien - SeekingAlpha.com
The most important piece of event risk on the economic calendar this week is today's FOMC minutes. We believe that the Fed minutes will be as unsatisfying as the last monetary policy meeting, which means that the impact on the U.S. dollar should be minimal. Don't expect any optimism in the Fed statement because in the run up to the meeting, economic data was weak enough to justify additional action. If anything, the minutes should reflect more concern within the central bank, which could be mildly negative for the U.S. dollar.
Many On FOMC Favored Easing Soon If No Pickup In Growth
By Joshua Zumbrun and Jeff Kearns - Bloomberg.com
Many Federal Reserve policy makers said additional stimulus probably will be needed soon unless the economy shows signs of a durable pickup, according to minutes of their most recent meeting.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," according to the record of the Federal Open Market Committee's July 31- Aug. 1 gathering released today in Washington.
The Setting For Ben Bernanke's Speech At Jackson Hole
by John M. Mason - SeekingAlpha.com
Anticipation is rising for the annual late summer speech given by the Chairman of the Board of Governors of the Federal Reserve System, Ben Bernanke. The basic economic environment surrounding this speech is what I would like to touch on in this post.
This environment along with what the Federal Reserve does…or doesn't do…is crucial to the possible "macro" position a person could in their investments and in their business decisions. For example, John Paulson, the hedge fund investor, has apparently started placing his bets with respect to current economic and financial conditions and with respect to what the Fed can…or can't do. Mr. Paulson, according to recent regulatory filings, has been re-arranging his portfolio… increasing his position in gold and reducing other positions… in anticipation of higher future levels of inflation.
Jackson Hole: Monetary Policy Under Financialism
by Tom Armistead - SeekingAlpha.com
The markets are looking forward to the Fed's annual symposium at Jackson Hole, August 30 through September 1 (according to Calculated Risk -- the Kansas City Fed doesn't publicly announce the dates). It is widely hoped and believed that Chairman Ben Bernanke, speaking Friday, will announce, or at least mention, further quantitative easing. ECB President Mario Draghi, speaking Saturday, will hopefully provide some details to flesh out his central concept: "whatever it takes."
Economics in Denial
By Howard Davies - Project-Syndicate.org
PARIS – In an exasperated outburst, just before he left the presidency of the European Central Bank, Jean-Claude Trichet complained that, "as a policymaker during the crisis, I found the available [economic and financial] models of limited help. In fact, I would go further: in the face of the crisis, we felt abandoned by conventional tools."
Trichet went on to appeal for inspiration from other disciplines – physics, engineering, psychology, and biology – to help explain the phenomena he had experienced. It was a remarkable cry for help, and a serious indictment of the economics profession, not to mention all those extravagantly rewarded finance professors in business schools from Harvard to Hyderabad.
It's Not Just Greece - Spain Is Now Printing Euros
by Colin Lokey - SeekingAlpha.com
On July 20, the ECB announced it would no longer accept Greek sovereign debt as collateral. Left without any viable alternatives and facing a looming 3.2 billion euro payment due Aug. 20 on a bond held by the ECB, Greece subsequently requested that the amount of short-term bills the Bank of Greece was allowed to accept as collateral in exchange for euros be raised. The ECB granted the request. The new arrangementallows Greece to print T-bills and then sell them to its own banks who then pledge them to the Bank of Greece as collateral for euros. In this way, Greece has already printed 5 billion euros into existence.
Jackson Hole To Create Euro Rally
by Evan Schnidman - SeekingAlpha.com
In a market increasingly driven by central banks and government policies, next week's Jackson Hole symposium is more important than ever. In addition to Ben Bernanke providing hints about if the Fed will engage in more easing, what type and when, Mario Draghi will be speaking about the future of the Eurozone. Thanks to recent statementsby key German officials, that future looks brighter than it did a few weeks ago.
Where homes are affordable
Residents who live in these 25 growing towns see their incomes go the furthest. [see slideshow with details]
Fannie Mae Tightens Mortgage Standards
For Some Home Buyers
By Jody Shenn - Bloomberg.com
Fannie Mae, the largest source of money for U.S mortgages, told lenders that it's tightening some of its qualification standards for people buying homes or refinancing loans.
The changes include a reduction of the maximum loan-to- value ratios for some adjustable-rate mortgages to 90 percent, from as much as 97 percent, and an increase in required credit scores for certain loans, the Washington-based company said yesterday on its website. Fannie Mae also will start demanding more tax returns from self-employed borrowers, according to Matt Hackett, underwriting manager at New York lender Equity Now Inc.
U.S. Treasury Has Sealed Fannie and Freddie's Fate Treasury Revision of Fan/Fred Payments Seals Their Fate
By Peter Wallison - RealClearMarkets.com
The Treasury Department's announcement last Friday-changing the payment arrangements on the preferred stock it holds in Fannie Mae and Freddie Mac-seems to seal their fate. Under the new plan, the dividends that the Fannie and Freddie owe to Treasury on that stock will be equal to all of their earnings each quarter. With no opportunity to accumulate retained earnings, the two government sponsored enterprises (GSEs) will have no net capital, no chance to function independently of the government and thus no chance to be released from the conservatorship that now controls their activities. This leaves two options for their future-conversion to a government housing finance agency along the lines of Ginnie Mae, or a gradual wind-down as contemplated in Paul Ryan's House budget plan.
Shrinking Income for America's Middle Class — Pew Research
By Paul Ausick, 24/7 Wall St. - DailyFinance.com
According to a study released late today by Pew Research Center, 85% of the American middle class say that it is harder to maintain their standard of living now than it was 10 years ago. For purposes of the study, Pew defined middle class household income as the tier of adults whose income in 2010 fell in the range of 39,000 to $118,000 annually for a family of three. By this definition, 51% of US adults qualify as middle class. In 1971, some 61% of US adults qualified as middle class.
Income distribution has also changed. In 1970, middle class Americans took home 62% of the country's income; that proportion had fallen to 45% in 2006 and remained at 45% in 2010. Upper income adults now receive a larger slice of the annual income pie: 46% in 2010 compared with 29% in 1970.
Hurricane forecasts heighten anxiety about GOP convention
By Sheldon Alberts and Mario Trujillo - TheHill.com
Concerns that Tropical Storm Isaac might impact the Republican National Convention in Tampa, Fla. mounted with forecasts late Wednesday showing the city remains under threat of a hurricane when the event opens on Monday.
The National Hurricane Center, in its 8 p.m. EDT forecast update, showed the Florida city in the center of its five-day "forecast cone" of uncertainty, which projects the potential path of the storm.
Could Hurricane Isaac derail the GOP convention?
By Nia-Malika Henderson and Rosalind S. Helderman - WashingtonPost.com
It's deja vu all over again: Four years ago, Hurricane Gustav threatened Republican National Convention plans. This year, it's Hurricane Isaac.
The bad weather, still a tropical storm in the Atlantic, has convention planners and emergency officials tracking the weather closely and reviewing contingency plans in case it tracks toward Tampa, where the Republican convention begins on Monday.
For now, the storm is closing in on the Lesser Antilles, and forecasters expect that it will become a hurricane Thursday. Some of their models are predicting a hurricane path that could run through Florida early next week, but forecasters won't know for a few days.
SOROS-FUNDED MARXISTS TO "OCCUPY THE RNC" - PART 1 of 2
By Tina Trent, Ph.D - NewsWithViews.com
Republican delegates arriving in Tampa for the convention this week will likely find one thing more oppressive than the humidity: hordes of motley Occupiers, political puppeteers, Teamsters, Code Pink activists dressed as giant female body parts, open-borders extremists, vegan Marxists, and tattooed anarchists, all assembling for their quadrennial temper tantrum.
One major target is the Republican presidential nominee, Mitt Romney, and anything ever associated with him. Plans include a tent city called "Romneyville" and protests against any companies assisted by Romney's old firm, Bain Capital.
SOROS-FUNDED MARXISTS TO "OCCUPY THE RNC" - PART 2 of 2
By Tina Trent, Ph.D - NewsWithViews.com
Occupy the RNC (aka resist RNC)
Occupy the RNC is the umbrella organization disseminating information for protesters. It calls itself the "above-ground coordinating committee." Their website states that they do not organize actions, "especially violent ones," but only "facilitate logistics for people resisting the RNC." This claim of non-violence is embedded in angry anti-police agitprop accusing law enforcement of being the real source of the violence at previous convention protests. According to Occupy the RNC, protesters are merely innocent victims of various police "pressure meant to disorient and distract." "It is clear they want to engage in battle . . . We live in a police state that is in its final stages of completion" their website reads. Until recently, it also featured videos celebrating violence against the police, including one advising protesters to throw Molotov cocktails at officers. After being exposed by RedAlert Politics, Occupy the RNC took the videos down. But the mindset remains.
Who rules America? US power elite and its phony partisanship. Class Warfare in 2012. Ho, Ho, Ho
by Gary North - LewRockwell.com
The media are filled with stories claiming that the Obama vs. Romney race is all about class warfare. I have my doubts. Here is why.
Karl Marx and Frederick Engels, in their then-anonymous tract, The Manifesto of the Communist Party (1848), began chapter 1 with these words: "The history of all hitherto existing society is the history of class struggles."
You would be hard-pressed to find any theory of history more wrong-headed than this one.
The survivalist: [Congressman R-MD]
Roscoe Bartlett prepares for a threatened future
By Ben Pershing - WashingtonPost.com
Deep in the West Virginia woods, in a small cabin powered by the sun and the wind, a bespectacled, white-haired man is giving a video tour of his basement, describing techniques for the long-term preservation of food in case of "an emergency."
"We don't really think of those today, because it's so convenient to go to the supermarket," he cautions. "But you know, you're planning because the supermarket may not always be there."
West Nile outbreak largest ever in U.S.
By Elizabeth Cohen - CNN.com
(CNN) -- The recent West Nile virus outbreak is the largest ever seen in the United States, according to new numbers from the Centers for Disease Control and Prevention.
The number of cases so far this year is the highest recorded through August since the disease was first detected in the United States in 1999. As of Tuesday, 38 states had reported human infections.
The cases reported to the CDC as of Tuesday total 1,118, including 41 deaths. That number rose to 42 on Wednesday when a death was reported in Arkansas.
West Nile Virus Kills 41 People In Biggest U.S. Outbreak
By Alex Nussbaum and Romaine Bostick - Bloomberg.com
West Nile virus has killed 41 people in the U.S. and infected 1,118 in the biggest outbreak of the mosquito-borne disease since it was first confirmed in the country 13 years ago.
Through Aug. 21, the number of West Nile cases had increased 55 percent over last year's total, the Centers for Disease Control and Prevention's Lyle Petersen said today on a conference call with reporters. While the illnesses have been reported in 47 states, most of the cases have been concentrated in five -- Texas, Mississippi, Louisiana, South Dakota andOklahoma -- with more than half in Texas alone.
Unlimited data plans making a comeback
By Peter Svensson - AP - WashingtonTimes.com
NEW YORK — Unlimited wireless data is back. After sliding off the menu of cellphone plans, data plans with no caps are making a comeback at smaller wireless companies trying to compete with AT&T and Verizon.
T-Mobile USA, the nation's fourth-largest cellphone company, said Wednesday that it will start selling an unlimited-data plan again on Sept. 5, after stopping sales of such plans early last year. A day earlier, No. 5 carrier MetroPCS cut the price of its unlimited-data plan as a promotion for a limited time.
America May Have Too Many College Graduates
by Jordan Weissmann - TheAtlantic.com
There's no question that, in today's economy, you are better off with a college education than you are without one. The unemployment rate for grads is lower, and their wages are higher, as are their chances of advancing to a management job.
But does that necessarily mean the whole economy would be better off if more Americans had a diploma? That's a tougher issue, one which has been the subject of some lively debate since the Georgetown Center On Education the Workforce published a study last week examining how workers at different education levels have fared in the job market.
Coal Wins Minor Battle with EPA, but Still Loses to Natural Gas
By Joao Peixe - OilPrice.com
The Environmental Protection Agency (EPA) has lost a major legal battle with major power companies over the timeframe and extent of coal-pollution regulations, but it will do little to stay the decline of coal in the face of the natural gas revolution.
On Tuesday, the US Court of Appeals overturned an EPA cross-state pollution rule, saying that it stepped on the legal toes of states, which are meant to set their own air-pollution regulations. The court also said the EPA's caps on sulfur dioxide and nitrogen oxide emissions from power plants in 28 US states, mostly in the East and Texas, were too low.
Pussy Riot, the Unfortunate Dupes of Amerikan Hegemony
by Paul Craig Roberts, PaulCraigRoberts.org - LewRockwell.com
My heart goes out to the three Russian women who comprise the Russian rock band, Pussy Riot. They were brutally deceived and used by the Washington-financed NGOs that have infiltrated Russia. Pussy Riot was sent on a mission that was clearly illegal under statutory law.
You have to admire and to appreciate the spunk of the young women. But you have to bemoan their gullibility. Washington needed a popular issue with which to demonize the Russian government for standing up to Washington's intention to destroy Syria, just as Washington destroyed Iraq, Afghanistan, and Libya, and as Washington intends to destroy Lebanon and Iran.
Islamic law rises as Sinai lacks order in the courts
By Mohannad Sabry - Special to The Washington Times
EL ARISH, Egypt — A sign above the military patrol securing the Bank of Egypt in this small town in the northern Sinai Peninsula announces the official opening of "The House of Shariah Law" near the marketplace downtown.
Local residents crowd the bank lobby waiting for the Salafist cleric turned judge to hear their cases.
The uprising last year that toppled President Hosni Mubarak left the Sinai with almost no government authority, so Salafist clerics with their strict and puritanical interpretation of Islam have moved into the vacuum. They have established dozens of Shariah courts in an attempt to replace tribal tribunals that have long served as alternatives to government courts.
Lebanon Headed for Civil War?
theTrumpet.com
Sporadic clashes continued between the rival neighborhoods in the northern Lebanese city of Tripoli on Wednesday. At least six people were killed and more than 70 injured in clashes between the two sides on Monday, according to the Lebanese state-run news agency.
The Bab al-Tabbaneh district is populated by Sunnis, while the neighboring district of Jabal Moshen is populated mostly by followers of the Alawite sect, an offshoot of Shiite Islam.
Did Someone Say 'War'?
By William Pfaff - Truthdig.com
Politics tends to wring all seriousness out of speech. Sometimes this is a demonstration of unforgivable ignorance. Republican vice presidential candidate Paul Ryan thinks that "Now is the time to lock in the success that is within reach" in Afghanistan. Ryan's comment seems like it's grasping to be completed by a call to get out of Afghanistan now. That would shake up the presidential campaign.
Washington undoubtedly includes thousands or tens of thousands, connected or not with the U.S. government, who believe "success" in Afghanistan is "within reach" because that is what the Obama administration, and before it, the G.W. Bush administration, has consistently told them. But we are now told that NATO instructors assigned to Afghan training units will be given "guardian angels," their weapons always charged, to protect the teachers from their students. During the first eight months of 2012, more NATO soldiers have been killed by the Afghans they were instructing than during the entire period from 2007 to 2010. That doesn't sound like success. The Taliban are even shooting up the airplanes at Kabul airport used by commanders from Washington.
Is that Netanyahu's game? Bibi's Game: Nuclear Blackmail? An Israeli strike against Iran is bound to go nuclear
by Justin Raimondo - LewRockwell.com
The Israelis are going all out to lure, threaten, and scare the US into attacking Iran: the world hasn't seen such a frenzy of staged hysterics since my three-year-old niece threatened to hold her breath until her parents agreed to buy her all six Barbie Fashionistas. Complain, complain, complain: kvetch, kvetch, kvetch: that's been Bibi Netanyahu's shtick ever since this President took office. However, the hystericsreached a crescendo of unprecedented shrillness last week, a turn of events dutifullyreported in the Washington Post:
"A flurry of public statements and anonymous quotes to the Israeli news media in the past week has raised speculation that an Israeli attack could come before the U.S. presidential election in November."
The Endless War:
Saudi Arabia Goes on the Offensive Against Iran
By Felix Imonti - OilPrice.com
Saudi Arabia has gone on the offensive against Iran to protect its interests. Their involvement in Syria is the first battle in what is going to be a long bloody conflict that will know no frontiers or limits.
Ongoing Disorders in the island kingdom of Bahrain since February of 2011 have set off alarm bells in Riyadh. The Saudis are convinced that Iran is directing the protests and fear that the problems will spill over the twenty-five kilometer long COSWAY into oil rich Al-Qatif, where The bulk of the two million Shia in the kingdom are concentrated. So far, the Saudis have not had to deal with demonstrations a serious as those in Bahrain, but success in the island kingdom could encourage the protestors to become more violent.
Top Iran official: If Israel attacks,
it will bring about its own 'annihilation' Comment by former Revolutionary Guard chief and Khamenei advisor comes ahead of Non-Aligned Movement summit due to take place in Tehran.
By Haaretz
An Israeli attack on Iran will lead to Israel's "annihilation," a senior Iranian official told the country's state-run TV station Press TV on Monday, ahead of the Non-Aligned Movement summit due to take place in Tehran later this month.
The comment, by former head of Iran's Revolutionary Guard Mohsen Rezaei, came after, last week, the head of the Revolutionary Guard's air force said that a possible Israeli airstrike against his country's nuclear facilities is "welcome" because it would give Iran a reason to retaliate and "get rid of" the Jewish state "forever."
Russia: Western powers 'instigating'
Syrian opposition groups to take up arms to unseat Assad
By AP - WashingtonPost.com
MOSCOW — Russia accused Western powers Wednesday of "openly instigating" Syrian opposition groups to take up arms in their fight to unseat President Bashar Assad.
Moscow has been Syria's key protector throughout the 17-month uprising that has evolved into a full-blown civil war, shielding Assad's regime from international sanctions and providing it with weapons despite an international outcry.
Russia's Foreign Ministry said the West "has done nothing" to urge the Syrian opposition to start a dialogue with the government.
How the Syrian Crisis Will End The eyes of the world are fixed on this explosive hot spot. Bashar Assad will be ousted shortly—but then what? You can actually know the outcome!
By Gerald Flurry - theTrumpet.com
Syria is at war. That country has been experiencing a slowly unfolding civil war for 17 months and counting. More than 10,000 people have already been killed. The Syrian people are intensifying their protests against President Bashar Assad's government, and the government is fighting back with brutal force. Thousands are dying, and tens of thousands are fleeing the country. Other countries have been pressuring Assad to step down for over a year, and it looks like his regime is reaching the breaking point.
But there is something much more significant happening in Syria than just another civil war.
CIA spies 'smuggle 14 Stinger missiles into Syria
so rebels can take out regime warplanes' The ground-to-air weapons have been delivered across the Turkish border and were partly paid for by Saudi Arabia
By Chris Hughes - Mirror.co.uk
CIA spies have smuggled up to 14 Stinger missiles into Syria so rebels can defend themselves from air strikes.
The ground-to-air weapons have been delivered across the Turkish border to the Free Syrian Army and were partly paid for by Saudi Arabia, a security source claimed.
President Bashar al-Assad's MIG-23 warplanes and helicopter gunships have killed more than 1,000 people.
Dollar Index loses minor trendline support -
Gold is breaking out
By Scott Pluschau - GoldSeek.com
The Dollar Index failed to hold the rising trendline support of the triangle on the near term 30 minute chart, see left hand side below. This trendline was identified early in this past weekend's update on the Dollar Index.
The dominant pattern is still the bullish "Cup with a handle" on the weekly chart. The Bulls are struggling with the extended neckline support and failed patterns are very strong signals.
Love Trade Cools as Central Banks' Gold Demand Heats Up
By FRANK HOLMES - FinancialSense.com
The two largest gold buyers in the world that largely drive the Love Trade, China and India, underwhelmed the metals market with their subdued demand for the yellow metal during the second quarter of this year.
According to the World Gold Council's (WGC) quarterly Gold Demand Trends report, total demand was 990 tons, which was about 7 percent lower compared to the second quarter of 2011. When you break down demand and look at the jewelry sector, you can see that Chindia remains about 50 percent of the world's total gold demand. However, this quarter's jewelry demand of a little more than 400 tons makes it one of the weakest periods in two years.
Forget the Fiscal Cliff, Real Issue Is Bernanke's Cliff The Bernanke Cliff
By Michael Pento
There is just far too much attention being paid to the so called Fiscal Cliff occurring at the end of this year. The expiration of the "Bush era" tax cuts and forced spending reductions taking place because of the Sequestration, really doesn't amount to much more than a fiscal speed bump. In fact, less government spending is one of the pathways to prosperity; rather than becoming some make-believe economic catastrophe. And although raising tax rates isn't an optimal solution, there could still be a small benefit if there was a resulting increase in revenue, which then served to reduce annual deficits and began to address our long-term fiscal imbalances.
However, there is indeed a real fiscal cliff that the United States is racing towards. It's the very same cliff that Europe has already dived over. That cliff is based on the collapse of our debt and dollar markets, resulting from the lost faith on the part of international investors. And that loss of faith is being greatly facilitated by our Federal Reserve.
Where to Cut the Federal Budget?
Start by Killing Corporate Welfare
By Doug Bandow - Forbes.com
Most politicians want to cut the federal budget in theory. Few want to cut it in practice. So it is with corporate welfare, which is enthusiastically supported by Democrats and Republicans alike.
The federal budget is filled with outrageous, inappropriate, useless, counterproductive, and simply wasteful spending. Washington has become an endless soup kitchen for special interests, with a grant or loan seemingly available for every interest group with a letterhead and at least three members.
Jacob Rothschild, John Paulson And George Soros
Are All Betting That Financial Disaster Is Coming
By Michael Snyder - TheEconomicCollapseBlog.com
Are you willing to bet against three of the wealthiest men in the entire world? Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down. Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter. So will the euro plummet like a rock? Will the price of gold absolutely soar? Well, if a massive financial disaster does occur both of those two things are likely to happen. The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money. The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions. Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don't. The fact that they are all behaving in a consistent manner right now should be alarming for all of us.
Fiscal Cliff Fears Chill Corporate Hiring, Economy
By JASON MA, INVESTOR'S BUSINESS DAILY
Corporations are scaling back investment, hiring and inventories ahead of steep year-end tax hikes and spending cuts, the most concrete sign to date that uncertainty over the so-called fiscal cliff is already hurting the anemic economy.
The automatic, draconian provisions were meant to prod lawmakers to reach their own deficit-cutting deal. But everything's on hold during the election season, and the fiscal cliff's potential GDP impact of 4%-5% has businesses hunkering down.
In a Paper System, All Assets are Backed by the Treasury Bond
By Keith Weiner (guest post)- FinancialSense.com
In a gold-based monetary system, every asset is ultimately backed by gold. This does not mean that every debtor (including banks) keeps the full amount of its liability in gold coin just lying around. Why would one bother to borrow if one did not need the money?
It means that every asset generates a gold income and every asset could be liquidated for gold, if necessary. If a debtor declares bankruptcy, the creditor may take losses. But he can rely on the gold income stream for each asset or if need be he can sell the asset for gold.
Muni Bonds: Riskier Than You Think
By Karen Weise - BusinessWeek.com
Investors generally view municipal bonds as safe investments—and the figures seem to back that up.Moody's Investors Service (MCO) tracked just 71 muni bond defaults from 1970 to 2011. A new analysis from the Federal Reserve Bank of New York says there's an "untold" story of muni bonds—that they actually go bad much more than we thought.
There's a discrepancy because many muni bonds aren't graded by the two large rating companies, Moody's andStandard & Poor's (MHP), and therefore don't show up in their data. When researchers included unrated bonds, they found 2,521 soured deals from 1970 to 2011—more than 35 times what Moody's found in the bonds it tracked.
'Zero Inflation' in U.S. = Hyperinflation Warning?
By Jeff Nielson - RealClearMarkets.com
It's impossible to cover developments in the global economy without feeling a lot like Alice in Wonderland surrounded by legions of Mad Hatters. This is especially true when covering the realm of anti-logic known as the U.S. economy.
We're told that the U.S. economy has been experiencing an "economic recovery" for the past 3+ years -- led by manufacturing growth -- while its energy consumption has plummeted so fast that the world's great Energy Glutton is now a "net energy exporter".
Does "Austrian Economics" predict inflation or deflation?
By: Steve Saville - GoldSeek.com
The answer to the above question is no, meaning that "Austrian Economics" makes no prediction about whether the future will be inflationary or deflationary. That's why some adherents to "Austrian" economic theory predict inflation while others predict deflation. An economic theory can give you an idea of what will happen if certain policies are implemented; it doesn't tell you what will happen regardless of policy choices. To explain what we mean we will zoom in on two famous quotes of Ludwig von Mises, the most important economist of the "Austrian" school.
Last Man Standing Means
Europe Investment Banks Resist Shrinking
By Ambereen Choudhury, Elisa Martinuzzi
and Elena Logutenkova - Bloomberg.com
Europe's failure to resolve its sovereign-debt crisis will force investment-banking chiefs in the region to consider shuttering entire businesses rather than rely on piecemeal job reductions to revive profit.
Dealmaking fees may drop 25 percent this year from 2009, when the crisis began in Greece, research firm Freeman & Co. estimates. European banks have cut about 172,000 positions since then, according to data compiled by Bloomberg, the same strategy they used after Lehman Brothers Holdings Inc. collapsed in 2008.
Euro Near 6-Week High On Europe Debt Crisis Optimism
By Kristine Aquino - Bloomberg.com
The euro traded 0.1 percent from its strongest level in more than six weeks against the dollar on speculation European leaders meeting this week will agree on measures to help contain the region's fiscal crisis.
The 17-nation currency was 0.4 percent from a six-week high versus the yen before Luxembourg Prime Minister Jean-Claude Juncker visits Greece today to discuss the nation's request for a two-year extension to its fiscal adjustment program. The dollar gained versus most peers before data that may show U.S. existing home sales rose, damping prospects theFederal Reserve will add to stimulus measures. The central bank will release today minutes of its most recent meeting.
U.S. Companies Worry About Effect of Russia Joining W.T.O.
By ANDREW E. KRAMER - NYTimes.com
MOSCOW — After two decades of negotiations, Russia will finally join the World Trade Organization on Wednesday. The lower trade barriers that come along with membership will open up new opportunities for foreign companies to do business in Russia.
But American companies are guaranteed no such advantages — and may even face higher Russian tariffs than their competitors from other countries.
Because of broader policy concerns about the Kremlin's crackdown on dissidents and its support for rogue governments, Congress has balked at the Obama administration's request to grant Russia permanent normal trade relation status. That status is important since the W.T.O. requires that any country that seeks to benefit from it must apply the same trade rules to all member countries.
How China Is Driving Federal Reserve Policy
By JAMES RICKARDS - USNews
During the Cold War, national security analysts spoke knowingly about the art of "Kremlinology." This was a technique for understanding Soviet power relations and policy changes taking place inside the leadership compound in the Kremlin.
The Soviet Union was completely opaque. One-time leaders could be demoted and new leaders advanced without any public acknowledgement. One technique for gleaning information was to look at photographs of Soviet leaders assembled on top of Lenin's Tomb in Red Square on important occasions. Such photographs were among the few glimpses of the leadership available to the public. Analysts were careful to note the proximity of each figure in the photo to a supreme leader such as Leonid Brezhnev. A Politburo member who was adjacent to Brezhnev one year but two places away the next had clearly been demoted.
Spooked by Glass-Steagall's Ghost?
By Mark Roe - Project-Syndicate.org
CAMBRIDGE – America's long-controversial Glass-Steagall Act of 1933, which separated deposit-taking commercial banks from securities-trading investment banks in the United States, is back in the news. This separation long symbolized America's unusual history of bank regulation – probably the most unusual in the developed world.
American banking regulation had long kept US banks small and local (unable to branch across state lines), unlike their European and Japanese equivalents, while limiting their operational capacity (by barring banks from mixing commercial and investment banking). These limits on American banking persisted until the 1990's, when Congress repealed most of this regulatory structure. Now the idea of a new Glass-Steagall is back, and not only in the US.
Fed Report: No More Monetary Gas Needed
By BRUCE KRASTING - FinancialSense.com
The Federal Reserve Bank of NY put out a research paper that must have pissed off Bernanke and the other Fed doves. Here is a Link to the Fed report, and another Link to a Bloomberg article with a good discussion.
The report looks at the consequences of structural issues that have impeded the return to "full employment" in the economy. The analysis identifies structural impediments as "misalignments":
"idle workers are seeking employment in sectors (occupations, industries, locations) different from those where the available jobs are. Such misalignment between the distribution of vacancies and unemployment across sectors of the economy would lower the aggregate job-finding rate."
Reinhart Says Failing Fed Should Commit To Stimulus
By Tom Keene and Jeff Kearns - Bloomberg.com
Federal Reserve Chairman Ben S. Bernanke should assure investors next week that "he'll do whatever it takes" to stimulate the slowing economy, said Vincent Reinhart, chief U.S. economist at Morgan Stanley.
Bernanke should use his Aug. 31 speech at the Fed symposium in Jackson Hole, Wyoming, to expand his commitment to providing additional accommodation if needed because the central bank is falling short of its mission, Reinhart said in an interview on "Bloomberg Surveillance" with Tom Keene and Sara Eisen.
Lockhart's Outlook Suggests QE3 Isn't A Done Deal
By Michael S. Derby - WSJ.com
A key Federal Reserve official on Tuesday suggested the case for more central bank easing is not the slam dunk so many in the markets now believe.
In a speech, Federal Reserve Bank of Atlanta President Dennis Lockhart told a hometown audience that the current stance of monetary policy is "appropriate" to prevailing economic conditions. But he also said "there is a risk to monetary policy being employed too aggressively and without effect to address economic problems" that would be better sorted out by other parts of the government.
Fed's Lockhart says monetary policy not a panacea
By Pedro Nicolaci da Costa
Atlanta | Tue Aug 21, 2012 10:30am EDT
(Reuters) - The economic recovery has been disappointing but monetary policy may not be capable of solving many current challenges, Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday.
Lockhart told reporters he had not yet made up his mind on whether further monetary easing is warranted.
"It's a cost-benefit calculation to consider more monetary stimulus and someone like me has to do his best to really carefully weigh the costs and benefits," Lockhart told reporters after a speech. "I'm not finished with (that) process."
Lockhart Says Fed Faces Risk Of Excessive Accommodation
By Steve Matthews - Bloomberg.com
Federal Reserve Bank of Atlanta President Dennis Lockhart said U.S. policy makers face a risk of easing too much while trying to spur a "disappointing" three- year-old economic recovery.
"There is a risk to monetary policy being employed too aggressively and without effect to address economic problems that can be resolved only by fiscal reforms that involve making tough choices about the allocation of public resources," Lockhart said today in a speech in Atlanta. While "monetary policy can exert a powerful positive influence on an economy," it "is not a panacea."
Get Ready for the Fall It's time to say goodbye to the bullish days of summer.
By Doug Kass - TheStreet.com
NEW YORK (Real Money) -- It is my view that we might now be approaching a crucial inflection point in the world's equity markets.
As a result, today's column will be committed to delivering a more lengthy examination of the markets. Some of my content this morning will be transmitted from points I have previously made, and much will be new.
As most are aware, I have been growing increasingly more cautious about the U.S. stockmarket.
Most Bullish Thing the Market Can Do Is Go Up
BY THOMAS J SMITH CFA - FinancialSense.com
The title this week is an old Wall Street cliché. There has been a laundry list of reasons for the market to struggle this year. The headlines screaming the end of the Euro and the break-up of the EU seem a hundred years ago now. As soon as peripheral countries, Greece and Italy, for example moved back to the shadows the market has roared higher.
There haven't been any concrete plans to backstop things in Europe but the language has changed and that is all the market needed to hear. While volume has been light the trend has been higher. If volume is light and the market is moving up then there just isn't much selling going on is there?
Hedge Funds Double Down on U.S. Debt
By Dan Freed - TheStreet.com
NEW YORK (TheStreet) -- Hedge fund trading of U.S. government bonds has practically doubled in the past year, according to a report published Tuesday by financial services consulting firm Greenwich Associates.
The report, based on interviews with nearly 1100 institutional investors active in fixed income, including more than 300 hedge funds, found the hedge funds generated 24% of U.S. trading volume in U.S. government bonds over the twelve month period ending at the close of the second quarter in 2012. By contrast, hedge funds accounted for 13% of trading volume in U.S. government debt over the same period a year earlier.
Against big banks, state regulators flex their muscles
By Danielle Douglas and Brady Dennis - WashingtonPost.com
When a little-known New York regulator this month threatened to revoke the charter of a major international bank for allegedly laundering money for Iran, the shock waves were felt in Washington as much as on Wall Street.
Federal regulators were furious. Some felt New York had jumped the gun, jeopardizing a more methodical investigation being conducted inside the Beltway, officials familiar with the matter said.
Wells Fargo Complicates Ally's Independence Plan
By Roben Farzad - BusinessWeek.com
"Lost another loan to Ditech." Future archaeologists and history professors will surely love to invoke those annoying ads from the subprimetastic 2000s. Ditech was the very public face of General Motors' (GM) longtime finance sub-empire GMAC—specifically its Res Cap mortgage arm. That business famously marketed 125 percent loans to borrowers keen to take out money in excess of the value of their homes. Throw in interest-only mortgages and liar loans and GMAC was one jollyenabler of the housing bubble.
Accordingly, the U.S. now owns 74 percent of GMAC, which took $17 billion in Treasury aid and has since renamed itself Ally Financial. To win (rather, buy) back its independence, Ally needs to make the most of its old, core auto-finance business, especially with Detroit on the rebound. U.S. sales of cars and light trucks are up 14 percent this year through July.
Wall Street Leaderless In Rules Fight As Dimon Diminished
By Dawn Kopecki - Bloomberg.com
Wall Street, the global financial community reeling from public outrage and increased regulation, is proving incapable of finding a champion to replace sidelined JPMorgan Chase & Co. (JPM)Chief Executive Officer Jamie Dimon.
Dimon, 56, one of the industry's most forceful advocates, has lost stature as his bank, the largest in the U.S. by assets, juggles multiple investigations and a $5.8 billion trading loss on wrong-way bets on credit derivatives. His peers at other big lenders are hobbled by poor performance, tarnished reputations or a reluctance to step into the breach.
Wall Street Sets the Rules for Regulators
AmericanBanker.com
....The current dynamics of the regulatory overhaul is a depressing development. While we're normally quick to criticize regulators (and for good reason), we also have to admit that monetary deprivation of such agencies by Republicans, as evidenced by budget cuts for the Commodity Futures Trading Commission, transfer some blame to anti-regulatory forces in Congress. Regulators currently entrusted with the task of policing Wall Street are facing a well-funded, well-connected and politically shrewd beast.
In essence, regulators are not writing the rules for Wall Street. Wall Street is writing the rules for regulators.
Thanks Obama - Here Are 24 Stats That Show How Much You Have Royally Messed Up Our Economy
By Michael Snyder.com - EndOfTheAmericanDream.com
Under Barack Obama, the U.S. economy has performed worse than it did under any other president since the end of the Great Depression. After every other recession since World War II, the U.S. economy always regained what was lost and got even stronger before the next recession began. During this "economic recovery", we have not even come close to getting back to where we were in 2008. In fact, the number of Americans living in poverty and the number of Americans that are dependent on the government both continue to explode even as Barack Obama runs up trillions of dollars of new debt. Anyone that believes that Barack Obama is going to "fix the economy" if he is given another four years in the White House has taken way too many sips of the Obama kool-aid. The truth is that Barack Obama is not going to save you. Barack Obama has royally messed up our economy (along with a lot of other things) and that is not something we should be thanking him for.
What Does Groupon's Collapse
Mean for Tech Stocks? How About: Nothing IPOs have cratered the most exciting tech companies by replacing unquantifiable hope with a very quantifiable number -- stock price -- that could make complicated financial stories seem simple
By Derek Thompson - TheAtlantic.com
When Groupon was the fastest growing company in American history in late 2010, 18 months (and several millennia in social media buzz-years) ago, it came as a surprise to the company's biggest boosters that some investors were still nervous. No matter how you dressed it up, they said, the coupon business was still the coupon business, and it seemed impossible to imagine that the most spectacular idea of the young century was to help groups get cheaper sandwiches and leg waxes.
Now that investors are dumping Groupon stock, it's easy to look back and say, Haha, I knew that company was doomed! But I can see all of you laughers trying to take credit, and guess what? I don't believe you. Not all of you, at least.
FHFA Announces New Standard Short Sale Guidelines
for Fannie Mae and Freddie Mac; Programs Aligned to Expedite Assistance to Borrowers
FHFA.gov
Washington, DC – The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac are issuing new, clear guidelines to their mortgage servicers that will align and consolidate existing short sales programs into one standard short sale program. The streamlined program rules will enable lenders and servicers to quickly and easily qualify eligible borrowers for a short sale.
The new guidelines, which go into effect Nov. 1, 2012, will permit a homeowner with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if they are current on their mortgage if they have an eligible hardship. Servicers will be able to expedite processing a short sale for borrowers with hardships such as death of a borrower or co-borrower, divorce, disability, or relocation for a job without any additional approval from Fannie Mae or Freddie Mac.
Short Sales for 'Current' Homeowners OK GSEs to Allow Short Sales for Borrowers
Who Are Current on Mortgage
BYy JANN SWANSON - MortgageDailyNews.com
The Federal Housing Finance Agency (FHFA) announced today that Freddie Mac and Fannie Mae (the GSEs) are revising their short sale guidelines and delegating authority to their mortgage servicers to approve short sales as of November 1. The new procedures are part of the Servicing Alignment Initiative which the Federal Housing Finance Agency has directed the GSEs to develop.
The streamlined program rules will enable lenders and servicers to quickly and easily qualify borrowers, who do not have to be delinquent on their mortgages, to qualify for short sales. As a further step to facilitate speedy sales, both of the GSEs have authorized a payment of up to $6,000 to incentivize second lien holders to allow the short sales to proceed.
Even '60 Minutes' Misses
The Real Story Of The Subprime Disaster
By STEPHEN PORPORA - Investors.com
On Sunday's "60 Minutes" it was asserted that the September 2008 failure of Lehman Bros. triggered the chain reaction that caused the global financial and economic crisis of the past four years.
While correspondent Steve Croft presented detailed interviews to support this claim, nowhere was it mentioned how the U.S. government, dating back to the Carter administration, mandated banks to make loans to people with poor credit and that this created a glut of subprime mortgages that went toxic when the housing bubble burst in 2006-2007.
More Firms Bow to Generation Y's Demands To Retain Young Workers, Companies Offer
Special Incentives; Some Older Employees Cry Foul
By LESLIE KWOH - WSJ.com
They're often criticized as spoiled, impatient, and most of all, entitled.
But as millennials enter the workforce, more companies are jumping through hoops to accommodate their demands for faster promotions, greater responsibilities and more flexible work schedules—much to the annoyance of older co-workers who feel they have spent years paying their dues to rise through the ranks.
Employers, however, say concessions are necessary to retain the best of millennials, also known as Generation Y, which is broadly defined as those born in the 1980s and 1990s. They bring fresh skills to the workplace: they're tech-savvy, racially diverse, socially interconnected and collaborative. Moreover, companies need to keep their employee pipelines full as baby boomers enter retirement.
Small Business Cheating Drives Out the Honest Some companies slash labor costs by flouting federal laws
Mandy Locke | The (Raleigh) News & Observer
BENSON, N.C. — As a commercial masonry contractor, Doug Burton prides himself on being exact.
He counts bricks to calculate estimates. He knows each of his laborers by first and last name. He has memorized exactly what he'll owe in taxes if he takes on an additional worker and knows week to week whether he can afford it.
Burton strictly follows rules, and until 2009, he made a good living doing it.
Millions Now Stuck in the Rut of Self-Employment
By MERRILL GOOZNER, The Fiscal Times
Whether it's by preference or an act of desperation by people who've gone years without a full-time job, U.S. workers are striking out on their own in greater numbers than ever before.
The number of Americans who consider themselves self-employed reached 22.1 million in 2010, up 414,000 from the previous year, according to the latest data from the Census Bureau. That represented 14.4 percent of the civilian labor force, more than two percentage points higher than 2002.
More Than Half Of All Americans
Are At Least Partially Dependent On The Government
By Michael Snyder - TheEconomicCollapseBlog.com
A very large segment of the population has figured out that it can use voting as a tool to get more money and benefits from the government, and that is a very dangerous thing. Once upon a time, the free market was the one that distributed nearly all the wealth in our system. But now the federal government has become a giant deluded "Santa Claus" that distributes goodies to the American people far beyond its actual capacity to do so. In fact, we are borrowingtrillions of dollars that we do not have so that our politicians can continue to buy votes with handouts. Look, we will always need a safety net. We don't want anyone in America starving to death or sleeping in the street. However, our current system has gotten completely and totally out of control. Today, there arenearly 80 different "means-tested welfare programs" operated by the federal government. As I have written about previously, more than 100 million Americans are enrolled in those programs. Sadly, that does not even count Social Security and Medicare. Tens of millions of Americans are enrolled in each of those programs as well. And when you add in more than 22 million government workers, you get one giant pile of people that are getting money or benefits from the government. In fact, at this point more than half of all Americans are at least partially dependent on the government.
Americans Having Fewer Babies
Crimping Consumer Spending
By Steve Matthews - Bloomberg.com
Debra Mollen, 41, a psychology professor in Denton, Texas, said she and her husband don't plan to have children as they strive to pay down their mortgage and save for retirement.
"Children are really expensive," Mollen said, and the 2008 financial crisis shows the importance of building a nest egg. "Retirement is not an option for a lot of folks."
Mollen isn't alone, as Americans have had fewer babies each year since the 2008 financial meltdown, with births falling to a 12-year low in 2011, according to the National Center for Health Statistics. The low birth rate and reduced immigration resulted in the smallest gain in population since World War II, which may hurt spending on everything from Huggies diapers to pregnancy kits, child care and education.
Dental health linked to dementia risk
Aug 21 (Reuters) - People who keep their teeth and gums healthy with regular brushing may have a lower risk of developing dementia later in life, according to a U.S. study.
Researchers at the University of California who followed nearly 5,500 elderly people over an 18-year-period found that those who reported brushing their teeth less than once a day were up to 65 percent more likely to develop dementia than those who brushed daily.
The Beginning of the End of Print:
The Lessons of an Amazingly Prescient 1992 WaPo Memo "Our goal, obviously, is to avoid getting boiled as the electronic revolution continues."
By Jordan Weissmann - TheAtlantic.com
"I am not here dreaming of (or worrying about) a world in which computers have displaced the printed word, and us too. I could find no one at this conference who would predict the demise of the newspaper. No one. All saw an important place for us."
Those words come from a remarkable letter written by Robert Kaiser, then the Washington Post's newly appointed managing editor, to publisher Donald Graham following a 1992 conference on the future of digital media. Kaiser had attended the event after being invited ill-fated Apple CEO John Sculley, flying to Japan in order to hear from the best contemporary minds in tech and publishing. In the course of his seven-page dispatch, Kaiser accurately predicts the explosion in computing power, growth of multimedia, and shift of readers to the web that would define the next 20 years of news publishing. It's a truly prescient document. (Disclosure: I interned with the Post in 2008.)
The Media Cold War
By Anne-Marie Slaughter - Project-Syndicate.org
PRINCETON – An information war has erupted around the world. The battle lines are drawn between those governments that regard the free flow of information, and the ability to access it, as a matter of fundamental human rights, and those that regard official control of information as a fundamental sovereign prerogative. The contest is being waged institutionally in organizations like the International Telecommunications Union (ITU) and daily in countries like Syria.
Pennsylvania Disenfranchising the Elderly Seniors most affected by voter ID law It may not benefit Republicans as much as some claim.
By Scott Kraus, Eugene Tauber
and John L. Micek, Of The Morning Call - Call.com
Forget Republicans or Democrats. If there's one group likely to be inconvenienced by the state's new voter ID law in November, it's the elderly.
A Morning Call analysis of the state's admittedly flawed database of voters who may lack valid state-issued ID shows those over age 65 are more likely than any other age group to be caught without the identification they will need to vote in the presidential election.
Cyber War: Why the Government Can't Keep Us Safe
By LIZ PEEK, The Fiscal Times
President Obama is incensed that Congress failed to pass the Cybersecurity Act of 2012 and is once again considering enacting some of the bill's measures through executive order. While the president is right to call cyber threats "one of the most serious economic and national security challenges we face," the legislation he championed would not protect us.
It calls for companies managing our power plants and stock exchanges to meet only minimal security standards while burdening those firms with costly compliance requirements. Moreover, it grants compliant organizations legal immunity in the event of an attack. In other words, companies would have arguably less incentive to truly protect our critical infrastructure than without the law. Passing the bill would have been another "checked box" for the White House and for Congress – nothing more.
How the U.S. East Coast Just Dodged an Oil Supply Shut-Down
By Keith Schaefer - OilPrice.com
Last September, Sunoco and ConocoPhillips announced they would both close their Pennsylvania oil refineries.
Roughly 330,000 barrels of oil are supplied through the Sunoco refinery in Philadelphia... every day.
Closing of the refineries would have not just resulted in hundreds of lost jobs, but an east coast supply crunch could potentially have occurred.
Fortunately, a solution came to happen – in fact it's a great example of a public/private/labor partnership actually working.
3 Energy Issues No One's Talking About There's Solyndra and the wind energy tax credit but there's also the coal industry and the fate of nuclear power
By MEG HANDLEY - USNews.com
If recent campaign events by both the Democratic and Republican presidential candidates are any indication, energy policy is going to be a major political chip in the race for the White House.
President Obama and Mitt Romney have diametrically opposed views on energy security, efficiency, and innovation. That brings seemingly minute issues such as a wind tax energy credit (crucial to Iowans, coincidentally) to the forefront as well as more philosophical issues such as whether the government should subsidize companies researching and producing renewable energy sources.
Venezuela Ramps up China Oil Exports
Unsettling Washington
By John Daly - OilPrice.com
The biggest geostrategic change of the past decade overlooked by Washington policy wonks in their fixation on their self-proclaimed "war on terror" is that Latin America has been throwing off the shackles of the Monroe Doctrine.
These ignored developments may well soon refocus Washington's attention on the Southern Hemisphere, as Venezuela's President Hugo Chavez reorients his country's to China.
It is not an inconsiderable element of concern for the Obama administration. According to the U.S. Energy Administration, the United States total crude oil imports now average 9.033 million barrels per day, with the top five exporting countries being Canada (2.666 mbpd), Mexico (1.319 mbpd), Saudi Arabia (1.107 mbpd), with Venezuela in fourth place at 930 thousand barrels per day. Note that two of America's top four energy importers are south of the Rio Grande.
Clearing Skies for Private Jets
By JOE SHARKEY - NYTimes.com
The private jet industry has been a bit more optimistic lately, in part because of business travelers like Mark Dowley who use it to patch holes in the domestic air travel system.
Mr. Dowley, an executive for a private equity firm and a marketing consultant, said he still flew commercial planes on the long, nonstop routes that airlines offer in abundance. But he will sometimes take a business jet to a smaller destination — the kind of place that could take an additional three hours or more to reach by commercial plane. So he may fly commercially from New York to San Francisco for a meeting in San Jose, and then fly by private jet to San Diego for more meetings.
"The day we see truth and do not speak is the day we begin to die." -- Martin Luther King
Conspiracy theories have now blossomed into what the smug presstitute media calls a "conspiracy culture." According to the presstitutes, Americans have to find some explanation for their frustrations and failings, so Americans shift the blame to the Bilderbergers, the Rothschilds, the New World Order and so forth and so on.
Readers will not be surprised that I disagree with the presstitutes. Indeed, the conspiracy culture is the product of the presstitute media's failure to investigate and to report truthfully. I am certain that the Western media is worse than the Soviet media was. The Soviet media devised ways for helping the public to read between the lines, whereas the Western media is so proud to be confidants of the government that they deliver the propaganda without any clues to the readers that it is propaganda.
Gun control and the security illusion Laws don't prevent crimes
By Anthony Gregory - WashingtonTimes.com
The recent mass shootings at a Sikh temple in Wisconsin and a movie theater in Colorado have revived the controversy over "gun control" policy.
It is tempting after such unspeakable crimes to search for answers that will help prevent a repeat. The media immediately examine the purported killer's profile and make sweeping statements about mental health screening, public health programs, bigotry, the schools and popular culture. Some correlations might deserve attention, such as the Wisconsin shooter's former military status, because the increased prevalence of traumatized military veterans is unavoidably a national issue.
Deadly ammo to stop alien reptilians or super-transhumans? Who Does The Government Intend To Shoot?
By Major General Jerry Curry, USA (Ret.) - DailyCaller.com
The Social Security Administration (SSA) confirms that it is purchasing 174 thousand rounds of hollow point bullets to be delivered to 41 locations in major cities across the U.S. No one has yet said what the purpose of these purchases is, though we are led to believe that they will be used only in an emergency to counteract and control civil unrest. Those against whom the hollow point bullets are to be used — those causing the civil unrest — must be American citizens; since the SSA has never been used overseas to help foreign countries maintain control of their citizens.
What would be the target of these 174, 000 rounds of hollow point bullets? It can't simply be to control demonstrators or rioters. Hollow point bullets are so lethal that the Geneva Convention does not allow their use on the battle field in time of war. Hollow point bullets don't just stop or hurt people, they penetrate the body, spread out, fragment and cause maximum damage to the body's organs. Death often follows.
America's New War Over Civil Rights Does the pernicious war on voting access require any less of a moral response than the Civil Rights movement of the 1960s?
By Andrew Cohen - TheAtlantic.com
Welcome, Dennis Lieberman and Tom Ritchie Sr., to what surely is a select group in history -- election officials who get threatened with dismissal for trying to help voters vote. The two men work in Montgomery County, Ohio, and today they are fighting for their jobs. The men are Democrats and are involved in a political fight with the Ohio Secretary of State, a Republican named Jon Husted. On Friday, Hustedsuspended Lieberman and Ritchie for disregarding a recent early-voting directive from his statewide office.
What Does Liberty Really Mean to You?
By David Galland - DailyReckoning.com
08/21/12 For some time now — years actually — I have pondered the nature of liberty. Or more specifically, what liberty actually means to me. And to be extra clear, I am not talking about the meaning in abstract or philosophical terms, but tangibly — in much the same way I might answer if asked what my wife means to me.
The trigger for this entirely personal discourse comes from reading various articles and viewing various YouTube videos and speeches from self-styled champions of liberty (COL). There is even an entire conference, Mark Skousen's Freedom Fest, dedicated to the topic.
Why China Needs Peace in the Middle East
By Lorenzo Nannetti - OilPrice.com
There's a tendency among U.S. scholars, policymakers and especially the military to look at China in a purely confrontational way. Not everyone thinks this way but the number of analysts looking at a future clash of the powers is staggeringly big. This may be true, especially if we look at Chinese aggression in the South China sea. Maybe the Pentagon itself, with its focus on the Air-Sea Battle doctrine, is right in making sure everything is in order in case that happens. And yet, looking at some data, a different future looks more likely.
Syria's security vacuum and WMDs
Posted by Amanda Paul - EUObserver.com
Following President Obama's recent statement about Syria and WMD's I thought I would post a recent article I wrote on the issue for Todays Zaman
While Syrian President Bashar al-Assad's days are clearly numbered, the current insurgency in Syria seems to be heading towards a full-fledged sectarian civil war, with regional stability and security increasingly at risk.
According to a recent article in The New York Times, the US State Department and the Pentagon have been sharpening preparations for a post-Assad Syria, including plans to maintain health and municipal services, restart the economy and avoid a security vacuum. Unfortunately, the US hardly has a good track record, bearing in mind the situation in neighboring Iraq. With regional powers moving to consolidate or increase their influence, the protracted chaos and sectarian violence is creating a growing security vacuum which, if not handled properly, risks hideously exploding.
WHEN ISRAEL STRIKES IRAN IN OCTOBER Why Jewish state won't 'bet its life' on Obama election loss
by Joseph Farah - WND.com
Israel is in a political and security quandary.
Officials are convinced it's only a matter of time before Iran uses its nuclear capability against the Jewish state, living up to the dire threats its leaders have been making for years now.
But Israeli leaders also fear they will lose the window of opportunity to deal a devastating military blow to Iran's nuclear development if such a strike is not conducted by October of this year.
Why?
Shhhh… It's Even Worse Than The Great Depression
by Mark McHugh from Across the Street - ZeroHedge.com
According to Wikipedia, Narcissistic personality disorder (NPD) affects one percent of the population and has little to do with looking at yourself in the mirror. It has a lot to do with unrealistic fantasies of success, power and intelligence. Some NPD sufferers become cult leaders or mass murderers, the rest become economists and policy-makers. Despite having a highly elevated sense of self-worth, narcissists have fragile self-esteem and handle criticism unpredictably, so let's keep this to ourselves….
Velocity of money is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men's underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what "this" is and whether or not anybody should be using the word "recovery" with a straight face:
Silver Jumps To Two Month Highs As Oil Reverts
Submitted by Tyler Durden - ZeroHedge.com
Silver has popped almost 2% today - its biggest jump in 3 weeks - as it nears its 100DMA. So what? It's still down notably from its Q1 swing highs but two things stand out to us as intriguing. First, oil priced in ounces of silver has seen a very narrow range of values since Bernanke's Jackson Hole speech in 2010 (QE2) when money-printing went full retard; and very recently the price of oil in silver had reached the upper end of that channel - and is now reverting. Second, the recent outperformance of silver over Gold has reverted the gold/silver ratio to its post-Bretton-Woods (1971) average at around 56x (up from a recent low of around 32x in April 2011). It seems there are stirrings in the real asset markets as energy and hard-money revert.
Hyperinflation Is Not Inevitable (Default Is)
Mises Daily: by Gary North
Hyperinflation is always a possibility for any national government or central bank. If a national government is running massive deficits, it can call on the central bank to buy treasury bills or treasury bonds with newly created money. This digital money is transferred to the treasury, which then spends the money into circulation.
There have been cases of hyperinflation in the past that have become legendary. The most famous of all of these hyperinflations is Germany from 1921 through 1923. Simultaneous with that hyperinflation was a hyperinflation in Austria. These were not the worst cases of hyperinflation in history, but they were the worst cases in industrial societies. The worst case was Hungary for two years immediately after World War II. The second-worst case took place a few years ago in Zimbabwe. Both were agricultural nations.
How Volcker Launched His Attack on Inflation
By William L. Silber - Bloomberg.com
When Paul Volcker took over as president of the Federal Reserve Bank of New York on Aug. 1, 1975, he became a permanent member of the Federal Open Market Committee, the panel within the Federal Reserve System responsible for managing credit conditions and interest rates.
The New York Times labeled him a "monetary pragmatist," adding that he was "philosophically sympathetic" with Fed Chairman Arthur Burns, meaning "that he leans toward tight money policies and high interest rates to retard inflation."
A Flock of Black Swans
By Jeffrey Frankel - Project-Syndicate.org
CAMBRIDGE – Throughout history, major political and economic shocks have often occurred in August, when leaders have gone on vacation believing that world affairs are quiet. Consider World War I's outbreak in 1914, the Nazi-Soviet pact in 1939, the Sputnik launch in 1957, the Berlin Wall in 1961, and the failed coup in Moscow of 1991. Then there was the Nixon shock of 1971 (when the American president took the dollar off the gold standard and imposed wage, price, and trade controls), the 1982 international debt crisis in Mexico, the 1992 crisis in the European Exchange Rate Mechanism, and the 2007 subprime mortgage crisis in the United States.
Obama should have fired Bernanke a long time ago With the economy limping along just months before the big election, the president is probably wondering if he should have sent his Fed chairman to the unemployment line.
By John Cassidy, contributor - Fortune.com
FORTUNE -- In the summer and fall of 2009, President Obama faced a tricky decision: Should he reappoint Ben Bernanke, whose four-year term as chairman of the Fed was coming to an end? On the one hand, Bernanke had done a pretty good job of managing the financial crisis that followed the demise of Lehman Brothers. On the other hand, he was a Republican appointee, and one of Obama's closest aides, Lawrence Summers, the pugnacious Harvard economist, badly wanted the job.
Jackson Hole Preview: Draghi's Plan
Should Net Positive for Markets Draghi has done the math, knows the formula, and understands the channels through which a devaluation needs to work. He knows it's not just about trade, it's about real wealth and income and effects on capital investment.
By Vince Foster Minyanville.com
When I first learned that ECB President Mario Draghi would be speaking at this year's Jackson Hole symposium after an already much anticipated speech from Fed Chairman Ben Bernanke I immediately thought there must be some coordination between the two central bankers who both earned their respective PhDs from MIT in the 1970s. I sought to find a connection between their respective influences to see if I could find a common theme. I did find an interesting link to MIT, but it was not what I expected.
Euro woes tilt financial power in Asia's favor
By Alan Wheatley, Global Economics Correspondent
LONDON | Mon Aug 20, 2012 1:03am EDT
(Reuters) - As European banks retrench to recover from the global financial meltdown, they are finding ready buyers in Asia for everything from loans to entire insurance and broking operations.
There are other tell-tale signs of a shift in power: this year's two biggest initial public offerings after Facebook were launched not in the United States or Europe, but in Malaysia.
Yet perhaps what is more striking is that, with one or two exceptions, Asian financial firms are not doing more in Europe itself to capitalize on the euro zone's festering debt and banking crisis.
Bank of England deputy governor Paul Tucker
warned banks they could collapse 'before Christmas' Bank of England officials were so concerned about the potential for a financial crisis late last year they took the extraordinary step of warning the entire banking system could collapse "before Christmas".
By Harry Wilson - Telegraph.co.uk
Paul Tucker, the deputy governor of the Bank of England, told an October meeting of the chief executives of Britain's largest banks that there was a serious chance none of their businesses would survive to the end of the year.
"Gentlemen, you could all be out of business by Christmas," Mr Tucker said in a stark warning to the bank chiefs, according to three sources present at the meeting.
The revelation of Mr Tucker's remarkable warning shows the depth of fear among senior officials over the havoc the collapse of the eurozone would wreak on the British financial system.
Germany backs Draghi bond plan against Bundesbank Germany's director at the European Central Bank has thrown his weight behind mass purchases of Spanish and Italian debt to prevent the disintegration of the euro, marking a crucial turning point in the eurozone debt crisis.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"A currency can only be stable if its future existence is not in doubt," said Jörg Asmussen, the powerful German member of the ECB's executive board.
He signalled full backing for the bond rescue plan of ECB chief Mario Draghi, brushing aside warnings from the German Bundesbank that large-scale purchases would amount to debt monetisation and a back-door fiscal rescue of insolvent states in breach of EU treaty law.
German central bank warns
country's financial health not a given
By Howard Schneider - WashingtonPost.com
Germany's central bank warned on Monday that the country could be stressed by the region's ongoing financial crisis, with signs of a slowdown accumulating in the euro zone's largest economy even as it is being relied on ever more to prop up its neighbors.
"Confidence in German public finances is a key anchor of stability in the current crisis but it cannot be taken for granted," the Bundesbank said in a monthly report that cautioned against what it called the potentially "unlimited" financial support being considered for troubled Italy and Spain.
Spanish Bond Yields Fall To 7-Week Low
On ECB Intervention Bets
By Neal Armstrong and David Goodman - Bloomberg.com
Spanish bonds gained, pushing 10- year yields to the lowest in seven weeks, on optimism theEuropean Central Bank is moving toward a crisis-fighting plan that will limit borrowing costs for indebted nations.
German bunds fell for the first time in three days after Spiegel magazine reported yesterday the ECB would be prepared to buy government debt to enforce a cap on yields, without saying where it got the information. Spanish and Italian bonds pared gains after the German Bundesbank stepped up its opposition to the ECB's plan to embark on government debt purchases.
U.S. Government's Foreign Debt Hits Record $5.29 Trillion
By Terence P. Jeffrey - CNSNews.com
(CNSNews.com) - The money the U.S. government owes to foreign entities rose to a record $5.2923 trillion in June, according to data released by the U.S. TreasuryWednesday afternoon.
In May, the U.S. Treasury had owed $5.2581 trillion to foreign entities. On net, in June, the U.S. government borrowed an additional $34.2 billion from foreign entities in order to fund U.S. government operations.
Max Keiser: Collapse is Imminent!!
On the Friday, August 17 edition of the Alex Jones Show, Alex welcomes economist, journalist and American broadcaster Max Keiser to discuss the warning signs of an impending economic collapse, the effect this will have globally and solutions that would bring us back from certain financial doom.
Still no escape for taxpayers if banks go bust "Too big to fail" banks still not reformed
By Huw Jones
LONDON, Aug 17 (Reuters) - Five years since the start of the financial crisis, taxpayers would still be forced to foot the bill should more banks fail because countries are delaying alternative solutions.
Finding a way to shut down big banks quickly without triggering market mayhem -- the threat of which prompted governments around the world to resort to publicly-funded bailouts between 2007 and 2009 -- remains a mammoth task.
Banks Can Legally Steal Customer Funds
From Private Checking Accounts
By Susanne Posel - OccupyCorporatism.com
In 2007, the Sentinel Management Group (SMG) collapsed, leaving many customer segregated funds lost after they had been used as collateral. After a plethora of lawsuits and creditor claims, a decision earlier this month in the 7th Circuit Court placed the banking cartels ahead of customer claims for funds returned. Essentially, the Bank of New York Mellon (BNYM) sued to be first in line for return on stolen customer account monies – and won the right by the US court system.
In the mainstream media (MSM), the SMG collapse and subsequent ruling in favor of BNYM was touted as a difficulty "for customers to recoup money lost".
On the origin of specie - Fate of the Dollar Theories on where money comes from say something about where the dollar and euro will go
Economist.com
MONEY is perhaps the most basic building-block in economics. It helps states collect taxes to fund public goods. It allows producers to specialise and reap gains from trade. It is clear what it does, but its origins are a mystery. Some argue that money has its roots in the power of the state. Others claim the origin of money is a purely private matter: it would exist even if governments did not. This debate is long-running but it informs some of the most pressing monetary questions of today.
Money fulfils three main functions. First, it must be a medium of exchange, easily traded for goods and services. Second, it must be a store of value, so that it can be saved and used for consumption in the future. Third, it must be a unit of account, a useful measuring-stick. Lots of things can do these jobs. Tea, salt and cattle have all been used as money. In Britain's prisons, inmates currently favour shower-gel capsules or rosary beads.
HARP: TBTF banks laughing all the way home The Economics Behind the HARP Program
EconomicMusings.com
HARP, The Home Affordable Refinance Program, is a streamline refinance program developed to help borrowers who have continued to make their mortgage payments, but have be unable to refinance due to a decline in their home value. Underwater borrowers have been stuck in a "no-win" situation of sorts, being stuck in a well above market mortgage rate (over 6% in many cases) despite being current on their existing loan and maintaining strong credit. Various fees and a LTV ceiling cause the original HARP program to flame out unsuccessfully. Blame was quick to be cast among the major lenders, the GSE's, as well as the Government.
Treasury Spasms
Submitted by Tyler Durden - ZeroHedge.com
As Bill Gross has been more than happy to demonstrate on several recent occasions, the recent sell off in US Treasurys has been sharp and violent, wiping out all year to date capital gains in the 10 Year in a few short weeks. The flipside to that is that this is not the first such headfake in the bond market, and it certainly will not be the last as David Rosenberg shows today with a chart summarizing all the "spasms" experienced in the 10 year Treasury since 2007. In fact, based on the average duration and move severity, the 10 Year sell off may not only continue for twice as long (on average it has been 49 days, and we are only 19 days in in the current sell off episode), but the final tally may be a further selloff well into the 2% range (the average decline in yield is 88 bps, double the 43 bps widening to date). At the end of the day will it make much of a difference? Very likely not: after all the deflationary implosion has far more to go before all the central banks engage in coordinated easing, and as a result superglue the CTRL and P buttons in the on position, leading to the final round in the global currency devaluation race.
Banks Use $1.77 Trillion To Double Treasury Purchases
By Cordell Eddings and Daniel Kruger - Bloomberg.com
The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010.
As deposits increased 3.3 percent to $8.88 trillion in the two months ended July 31, business lending rose 0.7 percent to $7.11 trillion, Federal Reserve data show. The record gap of $1.77 trillion has expanded 15 percent since May, the biggest similar-period gain since July, 2010. Banks have already bought $136.4 billion in Treasury and government agency debt this year, more than double the $62.6 billion in all of 2011, pushing their holdings to an all-time high of $1.84 trillion.
Meredith Whitney's Muni Prediction Gets No Boost From Fed
By the Editors - Bloomberg.com
The municipal bond market has been taking a few hits lately. To its reputation, at least.
The latest is an Aug. 15 study from the Federal Reserve Bank of New York asserting that municipal-bond defaults occur more often than investors might realize. Thirty-six times more often, to be exact.
Coming on top of high-profile bankruptcies and defaults -- in Jefferson County, Alabama; Stockton, California; and elsewhere -- average investors could be forgiven for getting antsy, and for perhaps wondering if banking analyst Meredith Whitney's 2010 prediction of "hundreds of billions of dollars" in municipal defaults might finally be upon us.
Junk Bonds: Wall Street's Newest Bubble?
By CHRISTOPHER MATTHEWS - Time.com
In an effort to nurse the long-ailing global economy, central banks around the world have maintained near-zero short-term interest rates for many years now. The Federal Reserve has even gone so far as to buy up billions of dollars worth of government and mortgage bonds and hold them on its on balance sheet, in order to hold down long term interest rates too.
While these actions are arguably justified by an epidemic of unemployment, and undergirded by decades of economic theory, they're not without negative side effects. It's the Federal Reserve's intention to have low rates ripple through the the economy, but heavy central bank intervention can give investors headaches because it causes the market to behave in strange ways.
Let's Get Ready to Crumble
by Alexander Reed Kelly - Truthdig.com
The American Society of Civil Engineers, the nation's oldest national engineering group, has awarded America's roadways a grade of D-, rated one in four bridges as "structurally deficient or functionally obsolete" and warned that thousands of American dams are on the verge of failure. It warned that unless tax dollars are redirected, the whole thing could crumble.
Altogether, Americans spend 4.2 billion hours a year stuck in traffic because of poorly maintained roads at a cost of $78.2 billion annually in squandered time and fuel.
Barry Ritholtz on the Ghosts
Haunting the Zombified US Housing Market!
New home construction in the US fell in July, according to Commerce Department Data, another reminder of weakness in the housing market despite recent signs of recovery. It is not unexpected if you talk to Barry Ritholtz, author of "Bailout Nation," who has been saying the "zombified" US housing market still has a long way to go.
Fed Studies Show Damage To Labor Market Is Reversible
By Alex Kowalski - Bloomberg.com
Most of the damage inflicted on the U.S. labor market by the recession is reversible, according to Federal Reserve research, leaving open the possibility that additional stimulus will be effective in reducing joblessness.
About one-third, or 1.5 percentage points, of the jump in unemployment from 5 percent as the economic slump began to its 10 percent peak in October 2009 can be traced to a mismatch between the supply of labor and job openings, according to a study released this month by the Federal Reserve Bank of New York. That leaves the remainder due mainly to a lack of demand.
What's the Single Best Explanation for Middle-Class Decline? Here's one answer:
In the age of globalized profits, all job creation is local.
By Derek Thompson - TheAtlantic.com
Median household income is in the middle of its worst 12-year period since the Great Depression. David Leonhardt and the New York Times have launched a feature to investigate the hardest question: Why?
I don't know! Or at least, I have no confidence that I understand exactly which issues had exactly what effect on the stagnation. The flat-lining of middle class wages is probably the most important long-term economic story in the United States, and its roots stretch deep into such far-flung themes as how technological changes hurt unions and how the subsidy for employer-provided insurance contributed to escalating health care costs.
False Piety and the Medicare Debate
By E.J. Dionne, Jr. - Truthdig.com
Deficit hawks are worried that the Medicare debate in the presidential campaign will make it impossible to reach a post-election deal to balance the budget. At the same time, much of the punditry focuses on how mean and nasty this campaign is.
Those who are anxious about the deficit should relax. This campaign could actually pave the way for a sensible budget deal. And those who bemoan the rock-'em-sock-'em campaign should stop wringing their hands and get about the business of calling out falsehoods and identifying misleading assertions.
Private-Market Tooth Fairy Can't Cut Medicare Cost
By Peter Orszag - Bloomberg.com
The vast bulk of health-care costs arise from an extremely small share of patients, whose insurance will inevitably bear a substantial share of their expenses.
That's why competition in health care doesn't work as well as in other sectors, and it's also why the key to keeping costs to a minimum is to encourage providers to offer better, less costly care in complex cases.
AMERICA'S NATIONAL SECURITY
TAKES A BACK SEAT TO OBAMA'S POLITICAL SURVIVAL
BY PAUL MIRENGOFF - PowerLineBlog.com
Even in the face of a plea from Nancy Pelosi, President Obama insisted on subordinating the defense needs of the United States to his reelection efforts. This is an under-reported lesson from Glenn Thrush's new e-book, Obama's Last Stand. According to Thrush:
In mid-2012, the House minority leader Nancy Pelosi, requested a sit-down to ask Obama to reconsider the billions of defense cuts that would kick in automatically as part of the 2011 budget deal. The cuts included in 'the sequester,' she argued, would hurt Democratic House members with major defense contractors in their districts. They were asking for an alternative state of cuts, or any kind of plan that would keep local employers – and, by implication, local contributors – happy.
New Retrofit Kit can Turn Any Car into a Plug-In Hybrid
By Brian Westenhaus - OilPrice.com
Dr. Charles Perry at Middle Tennessee State University continues driving toward success in the development of the plug-in hybrid retrofit kit for any car. Dr. Perry, his collaborators, and students are very close to achieving their goal.
Perry, who holds the Russell Chair of Manufacturing Excellence, and this year's five-member team saw gas mileage increase anywhere from 50 to 100 percent on a 1994 Honda station wagon retrofitted with laboratory prototype plug-in hybrid capability.
Obama's Gotta Go Why does Paul Ryan scare the president so much? Because Obama has broken his promises, and it's clear that the GOP ticket's path to prosperity is our only hope.
By Niall Ferguson - TheDailyBeast.com
I was a good loser four years ago. "In the grand scheme of history," I wrote the day after Barack Obama's election as president, "four decades is not an especially long time. Yet in that brief period America has gone from the assassination of Martin Luther King Jr. to the apotheosis of Barack Obama. You would not be human if you failed to acknowledge this as a cause for great rejoicing."
A Full Fact-Check of Niall Ferguson's
Very Bad Argument Against Obama A counterfactual history of the past four years.
By Matthew O'Brien - TheAtlantic.com
Celebrity historian Niall Ferguson doesn't like President Obama, and doesn't think you should either.
That's perfectly fine. There are plenty of legitimate reasons to disapprove of the president. Here's the big one: 8.3 percent. That's the current unemployment rate, fully three years on from the official end of the Great Recession. But rather than make this straightforward case against the current administration, Ferguson delves into a fantasy world of incorrect and tendentious facts. He simply gets things wrong, again and again and again. (A point my colleague James Fallows makes as well in a must-read.)
Fisking Ferguson I
By Andrew Sullivan - TheDailyBeast.com
My old and good friend Niall Ferguson has written an essay arguing against re-electing Obama. So for the second time in four years, we will be backing separate candidates. One reason is that I believe that the Bush-Cheney wars turned out to be disastrous and a second war against Iran could be catastrophic. Niall has had no such change of heart and remains an advocate of American imperial power. Another is that I do not share Niall's view of the Obama administration's record, which I think he massively - and rather self-evidently - distorts.
Ferguson's Newsweek Cover Rebuttal:
Paul Krugman Is Wrong The liberal New York Times blogger objected to 'multiple errors and misrepresentations' in this week's Newsweek cover story on Obama's record in office. Author Niall Ferguson rebuts the charges.
By Niall Ferguson - TheDailyBeast.com
You know you have hit the target when Paul Krugman takes time out from his hiking holiday to accuse you of "multiple errors and misrepresentations" ... but can only come up with one truly feeble objection.
In my piece I say: "The president pledged that health-care reform would not add a cent to the deficit. But the CBO and the Joint Committee on Taxation now estimate that the insurance-coverage provisions of the ACA will have a net cost of close to $1.2 trillion over the 2012–22 period."
Rand Paul's Tea Party Manifesto
By Jeffrey Tucker - DailyReckoning.com
Politics is a lagging indicator of social-cultural trends. Politics doesn't lead change; it chases it, incompetently and long after the underlying reality is impossible to deny. This is why it makes no sense to put faith in politics. By the time politics catches up, the rest of the world has moved on.
That said, I've just finished what might be the finest book ever written by a sitting member of the US Senate. It is daring. It is intellectually serious. It displays mastery of the subject matter. It makes courageous and counterintuitive claims, such as the need for across-the-board cuts in all spending, including military spending and middle-class welfare, by raising the retirement age. It takes on taboo subjects like the war on terror to call for normalcy and peace.
Government Funded Bullet Trains
Will Connect American Agenda 21 Megacities
By Susanne Posel - OccupyCorporatism.com
To boost infrastructure and build Agenda 21 high-speed rail systems (HSRS) across America, Transportation Secretary Ray LaHood stated last week that $470 million in unspent funds are still available to states for such projects.
In 2011, Obama called for these HSRS to be built in America within the next 25 years.
In California, government funding for a HSRS across the Central Valley trades $4.5 in bonds for $3.2 billion in federal stimulus for a railway that links to transportation lines.
Major General: Why Are Domestic Government Agencies Purchashing Enough Lethal Ammunition to Put 5 Rounds In Every American?
Submitted by George Washington - ZeroHedge.com
Preface: There might be an innocent explanation. But given recent trends, this is worrisome.
Retired Major General Jerry Curry wrote Friday:
The Social Security Administration (SSA) confirms that it is purchasing 174 thousand rounds of hollow point bullets to be delivered to 41 locations in major cities across the U.S.
***
Those against whom the hollow point bullets are to be used — those causing the civil unrest — must be American citizens; since the SSA has never been used overseas to help foreign countries maintain control of their citizens.
What would be the target of these 174, 000 rounds of hollow point bullets? It can't simply be to control demonstrators or rioters. Hollow point bullets are so lethal that the Geneva Convention does not allow their use on the battle field in time of war. Hollow point bullets don't just stop or hurt people, they penetrate the body, spread out, fragment and cause maximum damage to the body's organs. Death often follows.
Re: Senator Daniel Inouye on the shadow government
...."There exists a shadowy Government with its own Air Force, its own Navy, its own fundraising mechanism, and the ability to pursue its own ideas of the national interest, free from all checks and balances, and free from the law itself."
Synthetic Police Are Coming:
DARPA Engineering Autonomous Robots
By Susanne Posel - OccupyCorporatism.com
Because of the risks involved in rescue aid workers and human response teams, DARPA awarded Boston Dynamics, Inc. a $10.9 million contract to manufacture humanoid robots that are bi-pedal, built like humans and have a sensor head with on-board computing capabilities. Completion of the project is expected for August of 2014.
These robots are being created to assist in excavation and rescue missions, according to DARPA . They could also be employed to evacuation operations during either man-made or natural disasters.
Israel a 'cancerous tumor' and
Middle East's biggest problem, Iranian supreme leader says Khamenei reiterates statements made by Ahmadinejad on Friday, which the international community condemned
By GREG TEPPER - TimesOfIsrael.com
Israel is a "cancerous tumor" and is the biggest problem facing the Muslim world, Iranian Supreme Leader Ali Khamenei said on Sunday, immediately after the international community condemnedPresident Mahmoud Ahmadinejad for making similar comments.
"The great powers have dominated the destiny of the Islamic countries for years and… installed the Zionist cancerous tumour in the heart of the Islamic world," semi-official Iranian IRNA news agency quoted Khamenei saying in an Eid al-Fitr speech marking the end of the Islamic month of Ramadan.
"Many of the problems facing the Muslim world are due to the existence of the Zionist regime," he charged.
An Obama Visit to Israel Could Stall Iran Attack
By Jeffrey Goldberg - Bloomberg.com
It has been a tumultuous couple of weeks in the Iran-Israel War, and it hasn't even started yet.
Over the past few days, Iranian leaders have promised Israel's coming destruction about half a dozen times, and have gotten so overheated they've begun to mix metaphors: There has been much talk about wiping the cancerous tumor of Zionism from the map, and so on. The Iranians' language has become sufficiently genocidal that even the secretary general of the United Nations, not generally known as a hotbed of Zionist feeling, said he was "dismayed by the remarks threatening Israel's existence."
An Obama Visit to Israel Could Stall Iran Attack
By Jeffrey Goldberg - Bloomberg.com
It has been a tumultuous couple of weeks in the Iran-Israel War, and it hasn't even started yet.
Over the past few days, Iranian leaders have promised Israel's coming destruction about half a dozen times, and have gotten so overheated they've begun to mix metaphors: There has been much talk about wiping the cancerous tumor of Zionism from the map, and so on. The Iranians' language has become sufficiently genocidal that even the secretary general of the United Nations, not generally known as a hotbed of Zionist feeling, said he was "dismayed by the remarks threatening Israel's existence."
Netanyahu 'determined to attack Iran'
before US elections, claims Israel's Channel 10 TV reporter adds: 'I doubt Obama could say anything that would convince PM to delay a possible attack'
By TIMES OF ISRAEL STAFF
Israel's Prime Minister Benjamin Netanyahu "is determined to attack Iran before the US elections," Israel's Channel 10 News claimed on Monday night, and Israel is now "closer than ever" to a strike designed to thwart Iran's nuclear drive.
The TV station's military reporter Alon Ben-David, who earlier this year was given extensive access to the Israel Air Force as it trained for a possible attack, reported that, since upgraded sanctions against Iran have failed to force a suspension of the Iranian nuclear program in the past two months, "from the prime minister's point of view, the time for action is getting ever closer."
Obama warns Assad of US military action in Syria Obama Warns Assad: Chemical Weapons Are 'a Red Line for Us'
by Mike Giglio - TheDailyBeast.com
Tensions over Syria's chemical weapons spilled over Monday with an explicit notice from President Obama: if Assad uses them or they fall into the wrong hands, the United States will get involved. Mike Giglio on why Obama chose to speak out.
By Mike Giglio - TheDailyBeast.com
The back-and-forth between the United States and Syria over chemical weapons reached a new height on Monday—and this time it was Barack Obama who ratcheted up the dialogue. "That's an issue that doesn't just concern Syria," he said at a press conference in Washington. "It concerns our close allies in the region, including Israel. It concerns us."
The War in the Shadows
By Chris Hedges - Truthdig.com
A Swedish documentary filmmaker released a film last year called"Last Chapter—Goodbye Nicaragua." In it he admitted that he unknowingly facilitated a bombing, almost certainly orchestrated by the Sandinista government of Nicaragua, which took the lives of three reporters I worked with in Central America. One of them, Linda Frazier, was the mother of a 10-year-old son. Her legs were torn apart by the blast, at La Penca, Nicaragua, along the border with Costa Rica, in May of 1984. She bled to death as she was being taken to the nearest hospital, in Ciudad Quesada, Costa Rica.
Are biometric ID tools evil? Fingerprint readers, iris scanners, palm vein scanners, facial recognition systems and more -- biometric ID tools are going mainstream. But will the mainstream go biometric?
By Mike Elgan - Computerworld.com
Computerworld - Moss Bluff Elementary School in Lake Charles, La., wanted to speed up the cafeteria line and reduce errors in lunch accounting. So the school bought a Fujitsu PalmSecure biometric ID system, which has a scanner that reads the unique patterns of blood vessels in a human palm, enabling a positive ID, much like a fingerprint would.
When school officials sent out a letter announcing the program, someparents freaked out.
The parents had concerns centering around the belief that all forms of biometric ID constitute what the Christian Bible calls "the mark of the beast."
Wait, what?
iSingular image (click to enlarge - it's a good spoof)
Gold Continues To Be Money:
CME Europe Now Accepts Gold As Clearing Collateral
Submitted by Tyler Durden - ZeroHedge.com
Over two years ago, the US Clearing house of the CME, the world's largest derivatives marketplace, had no choice but to allow gold as collateral. Why: because as we showed some days ago, while in Europe bank deposits are expansive, in the US, financial system funding relies primarily on mythical assets as liabilities, i.e., those that exist primarily due to faith in the system, something which has been in short supply, as a result of which the $15 trillion (down from a peak of $23 trillion) shadow banking system long used to fund regular operations, has been imploding.
Couple that with a scarcity of other (re)pledgeable assets which in the US do not, unlike the UK, have an infinite rehypothecation chain, and one can see why back in October 2009 the CME had no choice but to accept gold as eligible collateral for clearing purposes.
Big Changes Ahead: Gold Just Became Money Again
By Doug Hornig - CaseyResearch.com
On June 18, the Federal Reserve and FDIC circulated a letter to banks that proposes to harmonize US regulatory capital rules with Basel III.
BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability.
It's a global standard on bank capital adequacy, stress testing, and market liquidity risk.
Here's the important bit:
At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion," right after "cash."
That's the part to take notice of.
Billionaires counting (on) GOLD, preferred currency of the elite Paulson, Soros Add Gold As Price Declines Most Since 2008
By Debarati Roy - Bloomberg
Billionaire investors George Soros and John Paulson increased their stakes in the biggest exchange- traded fund backed by gold as prices posted the largest quarterly drop since 2008.
Soros Fund Management more than doubled its investment in the SPDR Gold Trust to 884,400 shares as of June 30, compared with three months earlier, a U.S. Securities and Exchange Commission filing for second-quarter holdings showed yesterday. Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.
Gold bullish for next week;
Soros, Paulson SPDR new stakes fuel metal The news that the doyens in the investment business, George Soros and John Paulson have hiked their stakes in SPDR Gold Trust--the biggest gold-backed exchange-traded product-- in the second quarter by more than 100% in case of former and 26% in case of latter, have given fillip to the metal.
CommodityOnline.com
NEW YORK(Commodity Online): Vetting the long term resilience of gold as an investment medium, a survey conducted by Bloomberg has concluded that Gold would be bullish for the next week.
Of the 26 analysts surveyed, fourteen were bullish regarding the metal even as six were neutral and six bearish.
Meanwhile, the news that the doyens in the investment business, George Soros and John Paulson have hiked their stakes in SPDR Gold Trust--the biggest gold-backed exchange-traded product-- in the second quarter by more than 100% in case of former and 26% in case of latter, have given fillip to the metal.
Gold Bulls Expand
As Billionaire Paulson Buys Metal: Commodities
By Nicholas Larkin - Bloomberg.com
Gold traders are the most bullish in six weeks as investors boosted their bullion holdings to a record on concern that economic growth is slowing and after billionaires John Paulson andGeorge Soros bought more metal.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week and six were bearish. A further six were neutral, making the proportion of bulls the highest since July 6. Paulson raised his stake in the SPDR Gold Trust, the biggest gold-backed exchange-traded product, by 26 percent in the second quarter and Soros more than doubled his holding, U.S. Securities and Exchange Commission filings showed Aug. 14. Global holdings reached a record on Aug. 10, data compiled by Bloomberg show.
The US Money Markets And The Price Of Gold
Submitted by Tyler Durden - ZeroHedge.com
What do USD money markets have to do with gold? Money market funds invest in short-term highly rated securities, like US Treasury bills (sovereign risk) and commercial paper (corporate credit). But who supplies such securities to these funds? For the purpose of our discussion, participants in the futures markets, who look for secured funding. They sell their US Treasury bills, under repurchase agreements, to money market funds. These repurchase transactions, of course, take place in the so-called repo market.
Sunny skies: China's gold ambitions
by Robert Cookson - FT.com
China's largest gold producer is already a force to be reckoned with. But if the visionary head of China National Gold Corporation gets his way, it's going to be much, much bigger.
As the FT reported on Friday, the state-owned group is in talks to buy a majority stake in African Barrick Gold from its parent Barrick Gold, the world's top gold miner.
For anyone seeking an insight into the thinking behind the deal, beyondbrics has translated a fascinating article by Sun Zhaoxue [pictured], president of China National.
Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG
By Michael Snyder - TheEconomicCollapseBlog.com
If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing. Those that are "connected" have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen. Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves. In fact, they appear to be rapidly preparing for something really big. So exactly what are they up to? In a previous article entitled "Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?", I speculated that they may be preparing for a financial meltdown of some sort. As I noted in that article, more than 600 banking executives have resigned from their positions over the past 12 months, and I have been personally told that a substantial number of Wall Street bankers have been shopping for "prepper properties" this summer. But now even more evidence has emerged that quiet preparations are being made for an imminent financial collapse. That doesn't guarantee that something will happen or won't happen. Like any good detective, we are gathering clues and trying to figure out what the evidence is telling us.
Lord Rothschild takes £130m bet against the euro Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.
By James Quinn - Telegraph.co.uk
The member of the banking dynasty has taken the position through RIT Capital Partners, the £1.9bn investment trust of which he is executive chairman.
The fact that the former investment banker, a senior member of theRothschild family, has taken such a view will be seen as a further negative for the currency.
The latest omen follows news in The Daily Telegraph late last week that the government of Finland is already preparing for the euro's break-up.
"The Euro Crisis May Last 20 Years" -
The European Headlines Are Back
Submitted by Tyler Durden - ZeroHedge.com
In Europe, the "no news" vacation for the past month was great news. The news is back... As is Merkel.
• "The Euro Crisis May Last 20 Years" - Welt
The first five years of the global crisis are over, investors flee from complex financial products and into gold, silver and commodities. Experts warn against a false sense of security. "We should not give us the illusion that the crisis will soon be over," says Patrick Artus of the French bank Natixis. Years of negative developments such as the growing debt, or the de-industrialization of specific sectors should now be reversed. "Such a process takes time." Arthur looks to get politically and economically unstable savers years. "Investors have to live with depressed markets and considerable fluctuations learn." In his view, it must not remain in a lost decade. "The euro crisis may also last 20 years," says Arthur.
Greece must remain in eurozone, minister warns Greece must remain in the euro to survive according to its finance minister, as the country's leader prepares for a week of crucial meetings with eurozone leaders which could ultimately determine its fate.
By Angela Monaghan - Telegraph.co.uk
Greece must remain in the euro to survive according to its finance minister, as the country's leader prepares for a week of crucial meetings with eurozone leaders which could ultimately determine its fate.
Yannis Stournaras said the country must press ahead with the spending cuts demanded by its fellow eurozone members because its membership of the single currency was essential.
Russian Bear stops Finland leaving euro German eurosceptics quietly hope that Finland will become the first creditor state to storm out of monetary union in disgust, opening the way for others to break free.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Once Finns break the taboo, it would be easier for Germany to extricate itself from an escalating national disaster without inviting opprobrium from across Europe, or so goes the argument.
"We can't start this off, but the Finns can," said Hans-Olaf Henkel, former head of Germany's industry federation.
Berlin's policy elites are constrained by their honourable - if misdirected - feelings of moral duty towards the euro. They cannot bring themselves to plunge the dagger.
Chance of Fed Printing More Money Jumps to 60%
Reuters - FOXBusiness.com
Chances that the Federal Reserve will launch a third round of money printing have risen slightly over the past month to 60%, according to a Reuters poll that also showed economists lowering economic growth expectations for this year and next.
Most forecasters have turned more pessimistic on the economy, despite recent, modestly better news on retail sales, payrolls and the battered housing market. The trimmed quarterly growth forecasts for a third straight month.
N.Y. Fed says municipal bond defaults
higher than ratings agency counts
By Danielle Douglas - WashingtonPost.com
Defaults on municipal bonds for decades have been far higher than reported by rating agencies, bringing into question the true risk of a common investment widely considered to be safe, according to a study released Wednesday by the Federal Reserve Bank of New York.
Economists at the agency counted 2,521 muni bond defaults since 1970, whereas ratings agency Moody's Investors Service, for instance, reported 71.
Fiscal Cliff 2013 Will Bury Debt-Ridden U.S. Cities
BY JONATHAN YATES, Contributing Writer, Money Morning
With fiscal cliff 2013 approaching on January 2, it is struggling U.S. cities that stand to suffer the most if Congress fails to help.
These U.S. municipalities are already in terrible fiscal shape due to the effects of The Great Recession. Now they're facing the effects of automatic tax increases and deep spending cuts of 9%, about $560 billion in total.
Like Gramm-Rudman-Hollings from 1985 that imposed automatic spending cuts, these powerful one-two combinations will floor cities that have unwisely come to rely on federal aid.
How Dangerous Is America's Debt? The deficit needs to be trimmed, but not at the risk of austerity policies that could cause another recession — and the real long-term problem is entitlements
By MICHAEL SIVY - June 12, 2012 - Time.com
In the past three weeks, the Congressional Budget Office (CBO) has released two reports that seem to justify contradictory fiscal policies. The first calculated that the U.S. economy could be thrown into recession because of existing legislation to reduce the deficit sharply next year (the so-called fiscal cliff). The second projected that the U.S. will face an eventual financial crisis if the deficit is not reduced sharply. So what are we supposed to do? Obviously, America's debt is a problem — but is it a clear and present danger, or just something we need to deal with as circumstances permit? To understand how to make smart policy choices that address both these issues, it's helpful to take the debt numbers apart.
Why the Deflationists Are Wrong
Mises Daily: by Gary North
An inflationist is someone who believes that price inflation is the result of two things: (1) monetary inflation and (2) central-bank policy.
A deflationist is someone who believes that deflation is inevitable, despite (1) monetary inflation and (2) central -bank policy.
No inflationist says that price inflation is inevitable. Every deflationist says that price deflation is inevitable.
Deflationists have been wrong ever since 1933.
Milton Friedman is most famous for his book A Monetary History of the United States (1963), which relies on facts collected by Anna Schwartz, who died recently.
It is for one argument: the Federal Reserve caused the Great Depression because it refused to inflate.
This argument, as quoted by mainstream economists, is factually wrong.
Wall Street Has Set You Up Like a Bowling Pin
BY SHAH GILANI, Capital Wave Stroffategist, Money Morning
One by one the lights are being turned in our "shining city on a hill."
And Wall Street's greedy hand prints are all over many of the darkened switchboxes.
Of course, politicians' grubby, filthy fingerprints are everywhere too; but there isn't enough cyberspace to launch into when discussing that black hole.
Today's indictment is about Wall Street.
This time my Wells Notice, titled "industry capture", is going out to the entire Wall Street enterprise.
Keiser Report: Consumption-tration Camps (E329)
In this episode, Max Keiser and Stacy Herbert discuss consumption-tration camps, savers subsidising fraud in the City of London and JP Morgan sacrificing their balance sheet and the US dollar. In the second half of the show, Max Keiser talks to the one and only silver guru, David Morgan of Silver-Investor.com, about shorting bonds and buying silver.
Diamond Censured Over Evidence In Barclays Libor Probe
By Howard Mustoe - Bloomberg.com
Barclays Plc (BARC) ex-Chief Executive Officer Robert Diamond was criticized for giving "unforthcoming and highly selective" evidence by a U.K. parliamentary report that faulted the bank for letting traders rig interest rates.
The "candor and frankness" of Diamond's testimony to lawmakers on July 4 "fell well short of the standard that Parliament expects," the House of Commons Treasury Committee said in a 122-page report today following its inquiry into the bank's attempts to manipulate the London interbank offered rate.
"The Barclays board has presided over a deeply flawed culture," the panel of British lawmakers said. "Seniormanagement should have known earlier and acted earlier."
Standard Chartered and
Why We Must Change the Way We Police Banks
By CHRISTOPHER MATTHEWS - Time.com
MF Global, JP Morgan's Whale Fail, LIBOR rate-rigging: The financial services industry has been cranking out scandal like it's going out of style. The incidence of financial scandal has become so frequent, in fact, that each successive scandal has some media outlet or another asking the question: Is our financial system incorrigibly corrupt?
But a funny thing happened this week. A large multinational bank settled with a banking regulator over charges of falsifying documents and obstruction of justice and the financial press wasn't unanimous in its scorn of that bank. In fact, many were accusing the regulators of overreaching and overreacting.On August 6, the New York State Department of Financial Services (DFS) formally accused Standard Chartered, a British-based bank of laundering money from Iranian clients, and then covering up its tracks by falsifying documents and obstructing an investigation by the Department of Financial Services and federal regulators. Sounds like pretty dastardly stuff, so why were many in the media and the financial industry coming to the bank's defense after the DFS announced a $340 million settlement on Tuesday?
Deutsche Bank Among Four Said To Be In U.S. Laundering Probe
By Greg Farrell - Bloomberg.com
Deutsche Bank AG (DBK) is among four European banks being investigated by U.S. regulators for alleged money-laundering violations, according to an attorney with knowledge of the matter.
Federal regulators, including the U.S. Treasury's Office of Foreign Assets Control, the Federal Reserve, the Justice Department and the New York District Attorney's office are all involved in the probe of Deutsche Bank and three other European banks, said the attorney, who asked not to be identified because the investigations are confidential.
HUD to Sell $1.7 Billion of FHA Delinquent Loans
By Kate Berry - AmericanBanker.com
The Department of Housing and Urban Development will sell a $1.7 billion portfolio of nonperforming Federal Housing Administration loans in September as part of a bulk sale program aimed at helping borrowers avoid foreclosure, the loan sale advisory firm DebtX said Thursday.
HUD created its Distressed Asset Stabilization Program in 2010 to safeguard the FHA's insurance fund while helping seriously delinquent borrowers avoid foreclosure. Under the program, seriously delinquent FHA loans are sold for less than what the borrower owes, which gives investors the flexibility to reduce or modify the loan's terms. Investors who buy the loans in a competitive bidding process have to wait six months before proceeding with a foreclosure.
Foreclosures Called Into Question by MERS Ruling;
Thousands of Cases Could Be Affected
By Nina Shapiro - SeattleWeekly.com
The state Supreme Court yesterday called into question numerous foreclosures that have been done in this state, and opened the door for lawsuits by homeowners given the boot. Just how many foreclosures are we talking about? "Hundreds if not thousands," says Melissa Huelsman, a lawyer representing one of the plaintiffs in the case.
The case concerns that nebulous entity, the Mortgage Electronic Registration System, known more commonly as MERS. The Virginia-based company became the Big Brother of the mortgage world. It was everywhere, yet few people knew exactly who was behind it or how it operated.
Oil Prices Headed Higher after this Week's Boost
BY DIANE ALTER, Contributing Writer, Money Morning
Oil prices have steadily inched upward, buoyed by a surprising drop in U.S. crude inventories, stronger than anticipated retail sales, and the heightening tensions in Iran.
Benchmark crude for September delivery rose $1.27 to finish at $95.60 per barrel in New York on Thursday. On the heels of the Commerce Department report Wednesday on retail sales, oil rose 90 cents, finishing at $94.33 a barrel, near three-month highs. Brent crude also rose, closing the day up 35 cents at $114.63.
Long-Term Unemployment Is Much Worse Than You Think The worst legacy of the Great Recession is the worst long-term joblessness since the Great Depression
By Matthew O'Brien - TheAtlantic.com
Pop quiz, Washington. What's the biggest menace to the economy right now? Is it: (1) the budget deficit, (2) inflation, or (3) long-term unemployment? The presidential campaigns will tell you it's the deficit. The Federal Reserve might tell you it's inflation. But with our debt cheap and inflation low, it's clear that theright-now crisis is that people out of work can't find their way back in.
Long-term unemployment hasn't been this high since the Great Depression. It's an economic scourge because the longer you're out of work, the harder it is to get work. Employers lose confidence in the jobless and the jobless lose skills the longer they go without a job. Stay unemployed too long and you become unemployable. Jennifer Medina of the New York Times offers a depressing glimpse into this world that should be required reading for every member of Congress and the Federal Reserve. Economist Justin Wolfers summed it up with these three daunting numbers: "1600 resumes sent out; ten interviews; zero jobs."
Unemployment Rate Rises in 44 States in July
By ASSOCIATED PRESS - Time.com
(WASHINGTON-) — Unemployment rates rose in 44 U.S. states in July, the most states to show a monthly increase in more than three years and a reflection of weak hiring nationwide.
The Labor Department says unemployment rates fell in only two states and were unchanged in four.
Unemployment rates rose in nine states that are considered battlegrounds in the presidential election. That trend, if it continued, could pose a threat to President Barack Obama's re-election bid in less than three months.
NYT: OBAMACARE 'AMBIGUITY'
COULD MAKE HEALTH CARE TOO COSTLY FOR MILLIONS
by DR. SUSAN BERRY - Breitbart.com
The New York Times reports that an "ambiguity" in President Obama's signature health care law may make the Affordable Care Act unaffordable for millions of American workers and their families.
Ironically, the glitch is Clintonesque in nature, over the meaning of the word "affordable." The definition of the word could have enormous practical repercussions in decisions about who obtains government assistance for health insurance.
Under rules proposed by the Internal Revenue Service, which will carry out some of the primary provisions of Obamacare, some working class families would be unable to afford employer-sponsored family coverage health care benefits and yet would also not qualify for subsidies granted in Obamacare. In other words, these workers and their families will fall between the cracks of the language of the legislation.
The New Face of Health Care -- the IRS Obamacare has its enforcer in place and ready to roll.
By PETER FERRARA - Spectator.org
When President Obama's Patient Protection and Affordable Care Act (PPACA, aka "Obamacare") goes fully into effect in 2014, the American people will only then begin to see the implications of its thorough government takeover of health care, in all its glory. But what they are not expecting is the massively expanded role of the Internal Revenue Service ("IRS") in our lives, as the IRS is the chief agency responsible for enforcing the Act.
That is explained in a new paper by Dan Pilla, just published by the Heartland Institute, "Implementing the Patient Protection and Affordable Care Act." Pilla is a tax litigation consultant and a national leader in taxpayer rights defense, authoring 11 books on IRS defense strategies. His new paper explains "how the IRS can be expected to play an ever-growing role in your life and in the day-to-day affairs of every business in the nation as the tentacles of the PPACA wrap themselves around the most important and personal elements of your life."
Nassim Taleb: In the Investment Biz,
Luck Trumps Skill, So Take Your Talent Elsewhere
By DAVID FUTRELLE - Time.com
Mamas, don't let your babies grow up to be investment professionals.
That's the argument Nassim Nicholas Taleb, the investment expert and math whiz who wrote the influential book The Black Swan, is making these days.
In a brief paper with the blunt title "Why It is No Longer a Good Idea to Be in The Investment Industry," Taleb argues that those breaking into the business, no matter how skilled, won't be able to compete against "hot" managers whose supposed investing genius, and temporarily superior results, are the result of plain old dumb luck.
Google's Motorola Files New Patent Case Against Apple
By Susan Decker - Bloomberg.com
Google Inc. (GOOG)'s Motorola Mobility unit said it filed a new patent-infringement case againstApple Inc. (AAPL) claiming that features on some Apple devices, including the Siri voice-recognition program, infringe its patents.
The complaint at the U.S. International Trade Commission claims infringement of seven Motorola Mobility patents on features including location reminders, e-mail notification and phone/video players, Motorola Mobility said yesterday. The case seeks a ban on U.S. imports of devices including the iPhone, iPad and Mac computers. Apple's products are made in Asia.
Will Zuck, get zucked? Facebook Stock Hits New Low, So What Now for Mark Zuckerberg?
BY DIANE ALTER, Contributing Writer, Money Morning
Since Facebook's (Nasdaq: FB) hugely hyped and highly anticipated initial public offering on May 18 at $38, shares have been sliced in half, hitting a low of $19.01 in trading today (Friday).
Now, chatter is swirling that CEO Mark Zuckerberg should step down and let a more experienced executive take the helm.
"There is a growing sense that Mark Zuckerberg, talented though he may be, is in over his hoodies as CEO of a multibillion-dollar public company," Sam Hamadeh, head of research firm PrivCo, told the Los Angeles Times. "While in many cases a company founder can, and does, grow into the job, things are happening so quickly that there is precious little time here for Zuckerberg to do that."
Is Mark Zuckerberg in over his hoodie as Facebook CEO? Facebook's stock price slide has raised doubts about Mark Zuckerberg's role as CEO. Some say he should hand the reins to a more seasoned executive.
By Walter Hamilton and Jessica Guynn, Los Angeles Times
The deepening slide in Facebook Inc.'s stock is fueling talk once considered implausible on Wall Street and in Silicon Valley.
Should Mark Zuckerberg, the social media visionary but neophyte corporate manager, step aside as CEO to let a more seasoned executive run the multibillion-dollar company?
In that scenario, Zuckerberg would remain as the creative force propelling Facebook's technological innovation. But the 28-year-old would cede the CEO title to someone better suited to overseeing operations and building rapport with finicky investors — mundane but essential duties for which Zuckerberg has shown little appetite or aptitude.
Skilled Work, Without the Worker
By JOHN MARKOFF - NYTimes.com
DRACHTEN, the Netherlands — At the Philips Electronics factory on the coast of China, hundreds of workers use their hands and specialized tools to assemble electric shavers. That is the old way.
At a sister factory here in the Dutch countryside, 128 robot arms do the same work with yoga-like flexibility. Video cameras guide them through feats well beyond the capability of the most dexterous human.
One robot arm endlessly forms three perfect bends in two connector wires and slips them into holes almost too small for the eye to see. The arms work so fast that they must be enclosed in glass cages to prevent the people supervising them from being injured. And they do it all without a coffee break — three shifts a day, 365 days a year.
Obama's Federal Land Grab Enviros used to oppose any use of America's federal lands. Now they want it to be the source of "renewable energy." Welcome to America's two economies.
By WILLIAM TUCKER - Spectator.org
Three weeks ago, Dan Henninger of the Wall Street Journal wroteabout how under the Obama Administration the country is really splitting into two economies, one public, one private. More and more the government is trying to replace private markets in the decision of what gets built, when and how.
Little did he know. As if on cue, the Administration a week later announced it will be starting a full-scale initiative to build wind and solar projects on federal Western lands, with contributions coming from both the Bureau of Land Management and the Department of Defense. The Pentagon's contribution will be 16 million acres. In case you're keeping score, that's 25,000 square miles or the size of West Virginia. Who knew they owned that much? Yet the truth is, if you're going to build wind and solar you're going to need that much space because both are hugely dilute and can't be scaled up except by occupying more land.
No surprise there... these globalists want to win GOP Consultant:
Koch Brothers Bought Ryan's Nomination
With $100 Million Promise
By Joe Conason - NationalMemo.com
Veteran Republican political consultant, unrepentant dirty trickster, and recently reborn libertarian Roger Stone yesterday published a startling accusation against Paul Ryan and Mitt Romney on his personal website, The Stone Zone. According to Stone, the billionaire Koch brothers purchased the Republican vice presidential nomination for Ryan from Romney in late July by promising to fork over an additional $100 million toward "independent expenditure" campaigning for the GOP ticket.
ARAB SPRING RUN AMOK:
'BROTHERHOOD' STARTS CRUCIFIXIONS Opponents of Egypt's Muslim president executed 'naked on trees'
By Michael Carl - WND.com
The Arab Spring takeover of Egypt by the Muslim Brotherhood has run amok, with reports from several different media agencies that the radical Muslims have begun crucifying opponents of newly installed President Mohammed Morsi.
Middle East media confirm that during a recent rampage, Muslim Brotherhood operatives "crucified those opposing Egyptian President Muhammad Morsi naked on trees in front of the presidential palace while abusing others."
Germany's Neo-Nazi Flash Mobs
Posted by Brad Macdonald - TheTrumpet.com
You've probably heard about the flash mob phenomenon erupting across America. It's a frightening trend, one in which dozens or even hundreds of people, usually teens, gather spontaneously and seemingly out of nowhere, to rob a store, trash a gas station, or simply wreak havoc.
It seems Germany is also experiencing flash mobs, although these aren't your everyday American flash mobs.
They're neo-Nazi flash mobs—and they are becoming ever more popular and happening with increasing regularity.
Singularity Summit Exposed as Nazi Superman Project
Scoreboard-Canada.com
In the near future, the so-called Singularity Summit will take place in San Francisco, California. For those who may not have heard of the term, Singularity or better said, THE GREAT SINGULARITY is the idea or concept that in the near future, the various and sundry types of technology will meld together and essentially create a dramatic change in the very concept of what it means to be human. Technology advances in biotech, computers, health care energy sources, subatomic physics and so forth will essentially make the old Homo Sapiens human being obsolete. A new TRANSHUMAN will emerge with technologically derived supernatural abilities, powers, longevity, disease resistance and mental functioning. This could also include even psychic or 'X-Men' type powers.
Peter Thiel, a GERMAN, is funding THE GREAT SINGULARITY leading to TRANSHUMANISM, a metaphor for a SUPER HUMAN RACE
With friends like these ... Facebook has 59 million users - and 2 million new ones join each week. But you won't catch Tom Hodgkinson volunteering his personal information - not now that he knows the politics of the people behind the social networking site
By Tom Hodgkinson -The Guardian
....So by his own admission, Thiel is trying to destroy the real world, which he also calls "nature", and install a virtual world in its place, and it is in this context that we must view the rise of Facebook. Facebook is a deliberate experiment in global manipulation, and Thiel is a bright young thing in the neoconservative pantheon, with a penchant for far-out techno-utopian fantasies. Not someone I want to help get any richer.
Germany's New Breed Of Neo-Nazis
German resistance to the cultural, demographic, and psychological destruction of their people. Across Europe, indigenous Whites are under siege in the leftist media, on the streets of their cities, and in academia. To be proud is to be "racist". To resent displacement is to be "Nazi". Well, so be it..
What if we achieved The Singularity - but lawyers got there first?
If the contents of our brains get uploaded into a computer, then surely someone is going to have to pay to keep it all working. That'll be you. But what if you can't pay? And what about all that copyrighted content?
By Charles Arthur - Guardian.co.uk
What if we manage to hit The Singularity - that oft-receding target by which your brain's contents can be uploaded to a computer system in the event of (or ahead of) your death?
Wouldn't that be cool? Well, maybe. But more importantly, who's going to pay for it all when we're "dead" (and so presumably not able to earn money any more)? Ah, that's it - advertising will fill the sky and "your brand preferences will be aligned with those of our sponsors".
Singularity University: meet the people who are building our future [whether you like it or not] Take top thinkers from Silicon Valley and science, mix them with scientists, innovators and philanthro-capitalists, and you've got the Singularity University – on a mission to seek technological solutions to the world's great challenges
By Carole Cadwalladr - The Observer
It's day one at the Singularity University: the opening address has just been delivered by a hologram. Craig Venter, who was one of the first scientists to sequence the human genome and created the first synthetic life form, is up next. And later, we will see two people, paralysed from the waist down, use robotic exoskeletons to rise up and walk.
But first, the co-founder of the Singularity University, Peter Diamandis, gives us our instructions for the day. Your task, he says, is to pick one of the "grand challenges of humanity" – the lack of clean drinking water, say. And then come up with an idea that "can positively impact the lives of a billion people".
More on Singularity...understand what it is - the deception
Reason enough for God Almighty to step in and say ENOUGH! as He did in the days of Noah.
By Mitchell Heisman - suicidenote.info (pg 299 .pdf)
....Regardless of what happens over the long run, from a human perspective, the creation of God is singular in the sense that it affects all humans and is a singular overcoming of assumptions of biological evolution that humans have not even realized they were assuming.
Among those who think that Singularity will happen later, rather than sooner, there is at least one basic issue that tends to be overlooked. The issue is this: the goal of creating the first genuinely superhuman AI may turn out to be an all or nothing proposition. God or bust. It makes a difference who gets there first because the individual, group, business, government, or organization that reaches AI first may also unleash the exponential self-improvement process first. Who gets there first matters from the view of anyone who is planning to exist in some form in a post-Singularity world. The difference between being first and being second might be the difference between a hitherto inconceivable transcendence of the human condition and the total destruction of all life on Earth.
Who will hijack the Singularity? If there was ever a case where the concept of "leverage" was applicable, artificial intelligence is it. When it eventually dawns on governments, individuals, and organizations that control over the first AI could be ultimate control over the future, an AI arms race will likely ensue. When it dawns on the most farsighted people that that this technology is the future and whoever builds the first AI could potentially determine the future of the human race, a fierce struggle to be first will obsess certain governments, individuals, businesses, organizations, and otherwise. This is why the Singularity is likely to happen sooner than later: it matters who gets there first, and a miniscule difference in time could decide the decisive historical verdict of total victory or total defeat for all.
Illuminati Networks Exposed New Babylon Rising Corporate & Governement connections
....There are alleged ties between the nazi network and Al Qaeda / the Muslim brotherhood that also revolve around the 555 numerology. more see 555 Grove Street and Al Qaeda:more . What may be of even more interest is where Clarium is located at present - the suspected Illuminati nesting ground known as the Presidio , in San Francisco , California: "it's an odd place to find a hedge fund...where Star Wars director George Lucas has built a gleaming new headquarters."
....Great Singularity is another Super Man / Master Race project by the same people who have killed millions reaching for this Hitlerian dream.
Could the Organic Singularity Occur
Prior to Kurzweil's Technological Singularity?
By John Chelen - ScienceProgress.org
Many of us have heard of the "Technological Singularity"[1] predicted by Ray Kurzweil—the hypothetical future emergence of greater-than-human-intelligence based on computer systems. Kurzweil looked at the famous "Moore's Law,"[2]which predicts the ever-increasing power of computers based on ever-increasing chip density, and concluded such power inevitably would exceed that of the human brain. Kurzweil, a pioneer in several areas of technology, relied on a straightforward projection of improvements in computing and software technology and didn't envision any radical transformation in computing techniques themselves. While others have argued that Kurzweil understated the technical challenges—especially regarding the software needed to replicate human cognition—even today we see systems and networks of systems that far exceed the communications powers of any single human being. Google is one example, not to mention the Internet itself. Although these systems don't fulfill Kurzweil's prediction, they certainly do demonstrate that many human intellectual abilities can be exceeded through technical means.
Singularity = Godless Geek Rapture?
The Singularity - Terence McKenna
Terence McKenna and Gregory Stock speak about the epic transition we face in the very near future called the Singularity.
This shift will be the result of the inevitable culmination of infinite technological progress and the emergence of completely new states of connectedness. Once the Singularity happens, infinite growth is reached. Within a very short amount of time (as a result of this exponential growth), we will take our first steps towards a new age as an entirely new entity.
"Without the breath of life the human body is a corpse, and without thinking the human mind is dead -
Hannah Arendt, The Life of the Mind"
....The parallel of Kurzweil's optimistic proposal and Arendt's warning of the utilitarian temptation at the end of
The Origins of Totalitarianism
is startling. Kurzweil seeks an enabling "idea' thatwill allow us to solve the political, social and economic problems of humanity. This idea (moreaccurately, an ideology) is the Singularity hypothesis which proposes that we are entering aperiod in which "technological change will be so rapid, its impact so deep, that human life willbe irreversibly transformed."12
The question, of course, is what the nature of this irreversibletransformation will be. Does the Singularity hypothesis adequately account for the capacity of psychotechnological systems of power to capture and control our attention through digitalprostheses, and transform our embodied minds that think, will and judge into computationalplatforms that calculate, analyze and produce information? Does the Singularity hypothesisrepresent a new form of totalitarian ideology that will seek to transform human nature soradically as to render human beings superfluous?
Is the singularity near, or is it already history?
By Sally Adee - NewScientists.com
Ramona modifies her own code
In Silicon Valley, there's no overstating the redemptive potential of technology. Tech can make us happier, wealthier, healthier and luckier. It's almost like a religion.
It should come as no surprise, then, that this religion has its own rapture: the rapture of the geeks known as the singularity. According to this belief system, faster and better machines (a central tenet is Moore's law) will beget faster, better machines at an exponential rate, and eventually, the machines will become so powerful that they rival human intelligence. Although there are variations, most people who subscribe to the notion of the singularity believe that when it comes, we will upload our consciousness into a computer and live forever. It will be the death of death.
2045: A New Era for Humanity
In February of 2012 the first Global Future 2045 Congress was held in Moscow. There, over 50 world leading scientists from multiple disciplines met to develop a strategy for the future development of humankind. One of the main goals of the Congress was to construct a global network of scientists to further research on the development of cybernetic technology, with the ultimate goal of transferring a human's individual consciousness to an artificial carrier.
Time to Pick Up Some Gold
By John Thomas, Mad Hedge Fund Trader - OilPrice.com
Gold has clearly evolved into a call option on global quantitative easing. Don't think of it just as the stuff your dentist puts in your teeth or the thing your girlfriends gets you to wrap around her finger anymore. I don't think that the Federal Reserve will implement QE3 at its September 16-17 meeting, or even next year. This shocking realization will be bad for gold prices.
However, Europe is a completely different kettle of fish. Having just spent two months there, I can tell you with great certainty that the economic conditions are far more extreme than any economic data releases are indicating so far.
Jim Rogers on the Coming Fiscal 'Catastrophe'
By YUVAL ROSENBERG, The Fiscal Times
Renowned investor Jim Rogers is still worried. As the U.S. heads for the fiscal cliff at the end of the year, the chairman of Rogers Holdings has been outspoken about the consequences of the country's growing national debt. From his perch in Singapore, he still doesn't see much reason for real optimism. Rogers rose to investing prominence after starting the Quantum Fund with George Soros in the 1970s, generating an eye-popping and oft-cited return of 4,200 percent over a 10-year span that saw the S&P 500 climb less than 50 percent. Rogers "retired" as a multi-millionaire at age 37.
Deleveraging Needed In Next 4 Years: $28 Trillion
Submitted by Tyler Durden - ZeroHedge.com
Over the past several years, there has been much speculation and numerous reports that America is deleveraging. It isn't. In fact, consolidated across the 5 different kinds of American debt, which takes into account not only federal, but also financial, municipal, household and non-financial, total debt as a percentage of GDP has not budged over the past 4 years and is flat at 350% of GDP. Which simply means that all of the household debt that has supposedly vaporized (at least until the next major Flow of Funds revision), all of which has taken place purely from discharges on uncollectable mortgage and credit card debt, has been replaced by federal debt, while financial debt has merely soared to take the place of the collapsing shadow debt which is imploding as the confidence in a Fed-free financial system erodes to zero. Which of course, is the worst possible outcome: instead of funding private, individual entrepreneurs, who are the true basis for America's historic growth, prosperity and success (and who, unlike the government can and will fail if they dont allocated capital efficiently) the transferred debt (from household to federal) merely goes to fund the unproductive components of the US economy: the US government which by definition produces nothing, and the financial sector, whose only product is financial innovation which serves to make the TBTFs TBTFer, and pay record bonus after record bonus, and... that's it.
Ben Bernanke's Waiting Game
By Paul Vigna - WSJ.com
Despite all the hoopla in the market about QE3, which has run unabated pretty much since QE2 ended last year, we've been banging on contrarian points: That the Fed doesn't want to do another big bond-buying program, and won't unless it's absolutely forced to.
There are storm clouds on the horizon that may well force the bank to "do something," but they're still in the distance. Which means, as Goldman Sachs's Jan Hatzius argued, you might want to lay off those September QE3 bets.
Behold The Fed's Takeover Of The Bond Market
Submitted by Tyler Durden - ZeroHedge.com
The must see time lapse video below courtesy of Stone McCarthyshows the distribution across the entire curve of the US marketable debt, as it was held by either the Fed, or the private sector over the past three unconventional monetary policy programs: starting in 2003 and concluding yesterday. In one short minute, this clip demonstrates very vividly how the Fed effectively took over the US bond market.
Fed's Kocherlakota Says Inflation Target May Have to Rise
By Paul Ausick, 24/7 Wall St. - DailyFinance.com
Minneapolis Federal Reserve President Narayana Kocherlakota is generally considered a deficit and inflation hawk who mostly opposes both economic stimulus and increases in inflation above the Fed's "around 2%" target. But last night following a speech in North Dakota, Kocherlakota said that the Fed may have to consider letting inflation rise more in order to combat current high levels of unemployment.
The Wall Street Journal reports this morning that in answer to a question following his speech, Kocherlakota said:
"In a context, in a world, where unemployment is as high as it is," allowing inflation to tip over the current central bank target of 2% "could well be part of an appropriate policy," Kocherlakota said. The central bank may have to "give a little bit on the inflation front to do better on the employment front," although importantly, the central banker didn't predict this scenario will come to pass.
Fed's Plosser, George signal opposition to more easing
(Reuters) - Top officials at the Federal Reserve's Philadelphia and Kansas City regional banks have voiced doubts whether additional action by the U.S. central bank would be effective in spurring growth.
Separate remarks by Philadelphia Fed President Charles Plosser and Kansas City Fed President Esther George highlight a split at the top of the U.S. central bank between policy hawks and doves, who are ready to take further action to boost the economy.
How to Introduce a Gold Standard
BY RAFAŁ RUDOWSKI - FinancialSense.com
The idea of restoring gold to its former monetary status (or, as it is often described, "returning to the gold standard") seems to be increasingly popular all around the world. The main reason is the continuous debasement of all paper currencies that forces people to look for ways to protect their wealth. Additionally, it is commonly expected that the ongoing monetization of sovereign debts will lead to much higher inflation down the road. There is also a growing awareness that the government's, or central bank's, interference in the monetary sphere leads to various detrimental economic consequences such as distortions of price signals or inadequate levels of interest rates. Therefore, there is a need for a commodity money that would be hard to control and manipulate, and gold is the most obvious candidate to perform that role. Apart from that, it is becoming increasingly evident that the ability to create money by arbitrary decisions, which is a feature of fiat monetary systems, is a source of tremendous power and opens space for various forms of corruption. There are also many advocates of the idea of a global currency that would facilitate trade by removing costs, inconveniences, and risks connected with foreign exchange. Gold would fit perfectly.
Calling the Big Banks' Bluff
By Frank Schäffler and Norbert F. Tofall - Project-Syndicate.org
BERLIN – The G-20's decision in November 2008 not to let any systemically relevant bank perish may have seemed wise at the time, given the threat of a global financial meltdown. But that decision, and bad policies by central banks and governments since then, has given over-indebted major banks the power to blackmail their rescuers – a power that they have used to create a financial system in which they are effectively exempt from liability.
Finland prepares for break-up of eurozone Finland is preparing for the break-up of the eurozone, the country's foreign minister warned today.
By Ambrose Evans-Pritchard - Telegraph.co.uk
The Nordic state is battening down the hatches for a full-blown currency crisis as tensions in the eurozone mount and has said it will not tolerate further bail-out creep or fiscal union by stealth.
"We have to face openly the possibility of a euro-break up," said Erkki Tuomioja, the country's veteran foreign minister and a member of the Social Democratic Party, one of six that make up the country's coalition government.
When will the euro collapse? It's already dead Commentary: It's just the shell of a real currency
By Matthew Lynn
LONDON (MarketWatch) — Anyone who spends their time analyzing the euro debt crisis will know that there is one question you get asked again and again. When will the single currency finally collapse?
You can have fun giving a spuriously precise answer — July 28th, 2014, is my favorite (look it up on Wikipedia if you are wondering why).
But the truth is no one really knows. The euro EURUSD -0.0102% could stagger on from crisis summit to emergency bailout for another decade. Then again, it could be gone by the end of the month — if Greece is refused its third bailout, the country may be kicked out, and the entire currency could unravel over the course of a few chaotic days.
The Fiat World
by Jeff Berwick - GoldSeek.com
Today, the power of the state has corrupted society absolutely.
This week, fund manager Bill Gross tweeted how unhappy he is that Mitt Romney's VP selection is in favor of stealing less from citizens. He is calling for more theft and yet not a person at the cocktail parties he attends will slight him or call him a violent thief.
The corruption isn't just at the upper echelons of society either. It's everywhere. Almost everyone and everything in the US today suckles at the teat of the state.
Germany, Not Greece, Should Leave the Eurozone Why should Germany continue to pay for the fiscal mistakes of other countries?
By Matthew Feeney - Reason.com
There's much talk of Greece leaving the euro. The current Greek government has almost certainly failed to implement the austerity measures necessary for future bailouts, and the left-leaning parties of Greece continue to cling to the myth of eurozone membership without austerity. Italian and Spanish membership of the euro is also increasingly in doubt, thanks to record levels of borrowing and government spending.
Keiser Report: Frankenmarket (E328)
In this episode, Max Keiser and Stacy Herbert discuss unknown people whose solvency is uncertain operating faster than the speed of light in the "franken-market" and Max Keiser asks, "what if a high frequency trading algo bot shrugged?" In the second half of the show, Max Keiser talks to Sandeep Jaitly of feketeresearch.com about the real Austrian economics of Carl Menger versus the fake Austrian economics of Ludwig von Mises. They also discuss how Ben Bernanke's confusion about what money and how central banks are leading us into a second dark age. Max and Sandeep also highlight the reason why rehypothecation in London is fraud. And, finally, Max hopes Lew Rockwell watches and learns.
Will Bernanke Save the Equity Markets?
By Vedran Vuk, Casey Research - GoldSeek.com
How far is the Fed from reaching the bottom of its ammunition box?
Well, both Mario Draghi and Ben Bernanke said no to yet more monetary stimulus last week.
Wall Street unsurprisingly was disappointed.
Wall Street expected more stimulus, as institutional investors are analyzing monetary policy from their own perspective rather than the central bank's viewpoint – understandable, but a big mistake.
Will Bernanke Bail Out An Incompetent Congress Once More
Submitted by Tyler Durden - ZeroHedge.com
The vital question of the moment is whether of not The Bernank will signal an intention of moving towards QE3 in his much-anticipated 'Jackson Hole' conference in two weeks. Citi's Tom Fitzpatrick believes "it would be irresponsible to do so and that we need a more 'responsible fiscal policy' which will not materialize as long as we have an 'irresponsible monetary policy' bailing policymakers out". However, what we think in this regard is totally irrelevant to this discussion for it is what we think the Fed thinks that is critical. Recent data seems to have been a little more supportive of the economy(on the face of it) and may lead the Fed to stay on hold in the near term (September meeting). This will almost certainly raise the bar extremely high for further easing as we head into the Presidential race proper. If this window closes then a move before December will be extremely unlikely barring a major financial/market/economic shock, since after the 9/13 meeting, there are no more meetings until 12/12. However thisincreases the danger of the Fed getting 'caught behind the curve' which must be balanced with the 'mistake' of one-monetary-step-too-far with very real inflationary consequences.
JPMorgan, UBS Said Among Banks Queried In Libor Probe
By David McLaughlin - Bloomberg.com
JPMorgan Chase & Co. (JPM) and Barclays Plc (BARC) are among seven banks subpoenaed in New York and Connecticut's investigation into alleged manipulation of Libor, according to a person familiar with the matter and company filings.
Subpoenas were sent in recent weeks to Deutsche Bank AG (DBK), Royal Bank of Scotland Group Plc and HSBC Holdings Plc (HSBA) in addition to JPMorgan and Barclays, the person said yesterday. Citigroup Inc. (C) and UBS AG (UBSN) received subpoenas earlier this year as part of the investigation.
Municipal Governments: Default Rates Higher Than Thought
By John M. Mason - SeekingAlpha.com
"Moody's Investment Service has reported that from 1970 to 2011, there were only 71 municipal bond defaults. But (a Federal Reserve Bank of New York) report counted 2,521 defaults."
"The report found a similarly vast gap in the raw numbers of defaults when it looked at data from Standard & Poor's. The Fed's combined database indicated 2,366 defaults from 1986 to 2011, compared with S & P's 47 defaults during this same period."
11 reasons to leave your 401(k) behind Why you should leave 401(k) with your former employer
By Robert Powell, MarketWatch
BOSTON (MarketWatch)—If you lose your job or leave your employer, many wise a person will tell you to roll your 401(k) into an IRA. But experts say that might not always be prudent, and that there are plenty of reasons to leave your 401(k) with your former employer.
To be sure, you have to examine your own personal circumstances and decide what's best for you, but here's our laundry list of reasons—other than inertia—to leave your retirement account behind.
Romney and Ryan Would Return Us to the Bush Years The Bush years were bad for freedom; without them, we would not have had an Obama administration.
By Andrew Napolitano - Reason.com
We are in terrible straits this presidential election. We have a choice between a president who has posed more of a danger to personal freedom than any in the past 150 years and a Republican team that wants to return to Bush-style big government.
President Barack Obama has begun to show his hand at private fundraisers and in unscripted comments during his campaign. And the essence of his revelations is dark. His vision of a shared prosperity should frighten everyone who believes in freedom, because it is obvious that the president doesn't. He believes the federal government somehow possesses power from some source other than the Constitution that enables it to take from the rich and give to the poor. He calls this "a new vision of an America in which prosperity is shared," and he declared, "If you've got a business, you didn't build that. Somebody else made that happen."
Tax Policy Center:
Yes, Romney's Plan Does Raise Middle-Class Taxes
By BENJY SARLIN - TalkingPointsMemo.com
The authors of a report showing Mitt Romney's tax reform proposal would raise taxes on the middle class aren't backing down from their findings, even after Mitt Romney derided the nonpartisan Tax Policy Center study as "garbage".
The Tax Policy Center addressed a number of criticisms from the Romney campaign and his supporters in a detailed Q-and-A posted on its website Thursday. None of the complaints affected its conclusions, which the group said were based on running simple numbers around Romney's previously stated goal of revenue-neutral tax reform that would lower income tax rates while eliminating tax deductions, starting with those that benefit the wealthiest Americans.
4 Myths Both Parties Want to Maintain
Through the Presidential Election Obama and Romney try to create rhetorical differences where substantive ones may not exist.
By Ed Krayewski - Reason.com
To those not enamored by Teams Blue and Red, the rhetorical gymnastics performed in the run-up to a presidential election can be daunting. Yet underneath the hyper-partisan back and forth is an uncomfortable truth: a lot of what both sides are saying on the campaign trail is complete bullshit. Previously I broke down four misperceptions about Barack Obama some of his supporters advance. Some political misperceptions, however, are beneficial to partisans on both sides of the aisle, albeit for different reasons. Here are four myths that both the Democrats and the Republicans want to keep in circulation until the November election.
What Everybody Gets Wrong
About the Romney and Obama Medicare Cuts Soledad O'Brien's "beatdown" of Romney ally John Sununu was hailed as a breakthrough moment for wonky TV journalism. In fact, it obscured more than illuminated our bizarre debate about Medicare.
By DEREK THOMPSON - TheAtlantic.com
When I woke up this morning, this link was everywhere -- on Twitter, on Facebook, and even in emails from friends: CNN's Soledad O'Brien being praised for her "smiling, document-heavy, wonky beatdown" of John Sununu, a Mitt Romney ally. The Huffington Post's Andy Ostroy called it "the best example of truly awesome journalism I've seen [in four years]" and NYU journalism professor Jay Rosen agreed, calling itthe future of CNN.
Ethanol in Gas Tanks Makes Food on Your Table Cost More
By the Editors - Bloomberg.com
Record-high corn prices should be sending a clear message to policy makers in Washington: Requiring people to put corn-based fuel in their gas tanks is a bad idea.
Since 2005, the U.S. government has mandated that gasoline contain ethanol, almost all of it derived from corn. The policy, ostensibly aimed at reducing the country's dependence on foreign oil and at improving the environment, has been a bonanza for farmers. Land planted with corn soared by a fourth after Congress passed the Energy Independence and Security Act of 2007, which required that gasoline producers blend 15 billion gallons of ethanol into the nation's gasoline supply by 2015.
What has been Driving Global Oil Prices Recently?
By James Hamilton - OilPrice.com
The price of Brent crude oil fell $35/barrel between April and June. But increases this summer have taken about $25 of that back.
The increase in crude oil prices also wiped out most of the gains realized by American gasoline consumers this spring. Here in California, the gasoline price spike back up has been significantly bigger than the national average due to a fire at a major San Francisco Bay refinery.
Food Inflation on the Rise
BY MONTY GUILD WITH TONY DANAHER - FinancialSense.com
Drought, bad crop data, and rising grain prices around the globe have put food inflation on the front pages, raising alarm in many circles. Consumers are concerned, food producers are concerned, businesses are concerned, and governments are concerned. While food may not be a huge percentage of the daily budget for those in the developed world, it is in the lesser developed countries. Food inflation can erode the standard of living in the emerging economics rapidly and when food prices go up too much, governments fall.
Ann Barnhardt - A Matter of Record
Ann Barnhardt and I (Warren Pollock) talk about the most important issues of today including the property rights, collateral, the lack of safety in savings and retirement plans, and the 2012 election. We discuss the Sentinel Bankruptcy as a test case for violating key safeguards to any and all of your financial instruments within the context of fraud or banking interests. This ruling has major implications to you as well as Jon Corzine. We anticipate the need to fund Treasuries with funds captured in retirement plans. Most importantly, Ann and I describe events without pointing the finger to "them" this is a time to take personal responsibility by finding clarity in current events.
Living Paycheck to Paycheck: Personal Finance for the 40%
By Susan Ricker, CareerBuilder - DailyFinance.com
It's pretty likely that you've kept an eye on how close payday is before, but have you ever had to create a game plan for how to make it until your next paycheck hits your account? If it feels like your money gets spent before you even see it, you're not alone:According to a new CareerBuilder survey, 40% of Americans say they rely on their next payday to make ends meet.
But before you start sweating about the economy, know that this number is actually down since the recession-era high of 46% in 2008.
College Dreams Are Dashed by the Housing Bust
By JOSH BOAK, The Fiscal Times
As if the aftershocks of the 2008 housing crisis hadn't already been reverberating loudly across college campuses, a growing body of research now finds that the meltdown is forcing higher income families onto financial aid – and causing some students to stop applying to their dream schools altogether.
Parents writing tuition checks for the upcoming fall semester are not only coping with loads of new debt, but more than the cost of a degree is being shifted onto their children. This cycle sparked by the housing bust, if not stopped, threatens to stunt the growth of the broader economy over time.
The Truth About How The Fed
Has Destroyed The Housing Market
Submitted by Tyler Durden - ZeroHedge.com
When observing the trends in the housing market, one has two choices: i) listen to the bulls who keep repeating that "housing has bottomed", a common refrain which has been repeated every single year for the past four, or ii) look at the facts. We touched briefly on the facts earlier today when we presented the latest housing starts data:construction of single family residences remains 46 percent below the long-term trend; the more volatile multifamily houses is 15 percent below trend and demand for new homes 47 percent below. This is indicative of reluctance by households to make long-term investments due to fear of another downturn in housing prices. Bloomberg summarizes this succinctly: "This historically weak demand for new homes is inhibiting the recovery of demand for construction workers as well, about 2.3 million of whom remain without work." But the best visual representation of the housing "non-bottom" comes courtesy of the following chart of homes in negative or near-negative equity, which via Bloomberg Brief, is soared in Q4, and is now back to Q1 2010 level at over 13.5 million. What this means is that the foreclosure backlog and the shadow inventory of houses on the market could be as large as 13.5 million in the future, which translates into one simple word: supply.
No Matter Who Wins, Health Care Rationing Is Coming
By MERRILL GOOZNER, The Fiscal Times
Medicare has moved to the center of this year's presidential campaign for a single overriding reason: shrinking the nation's long-term government deficit demands dealing with health care costs. No one – left, center or right – disagrees with that analysis.
What they also agree on is that limiting health care's inexorable growth will require cutting future payments to those who deliver care – the doctors and hospitals, the nursing homes and walk-in clinics and the medical device and drug companies. Each group will have to adapt to a new era when their growth doesn't automatically exceed the growth in the overall economy.
The Bogus Attack on Paul Ryan's Medicare Plan It's time to retire the lame cliché
about "ending Medicare as we know it."
By Robert Herritt - Reason.com
By putting Paul Ryan on his presidential ticket, Mitt Romney has created an abundance of new fodder for our class of political prognosticators. It's a bold pick that will fortify his flagging support among movement conservatives, some have it. Others call it a giveaway to Democrats that weds Romney to the most politically risky parts of the Ryan fiscal vision and makes him an easy target for ferocious attacks from the left. And so on and so on.
Jobless rates rise in NY, NJ and Connecticut in July
(Reuters) - Jobless rates for New York, Connecticut and New Jersey all climbed in July, with New Jersey seeing its highest unemployment rate since 1977, according to data from the three neighboring states on Thursday.
New Jersey's jobless rate rose for the fourth month in a row, to 9.8 percent, up from 9.6 percent in June and from 9.4 percent in July 2011, according to preliminary numbers from the state Department of Labor.
Pessimism About Jobs Grows Worldwide
By Douglas A. McIntyre, 24/7 Wall St. - DailyFinance.com
As much of the world made a modest recovery from the recession, many people were still worried about their jobs last year. But, those concerns returned to prerecession levels - similar to the ones just ahead of 2009 - according to a Gallup poll. But, 2011 was not as bad a year economically as 2012, so the opinion of many workers probably worsened recently.
Gallup researcher reported the concerns in some countries were much less than in others. As might be expected, these were nations where the recession did not bite particularly hard, among them Singapore, Saudi Arabia, Kuwait, Australia and Canada. Each of these has large reserves of natural resources, or is a financial center large insulated from the banking problems that hit the United States and much of Europe in 2008.
Facedeals: Facial recognition marketing
stirs privacy discussion along with excitement Red Pepper — an advertising agency specializing in marketing technologies — has announced that it is finalizing testing for Facedeals, a facial recognition-marketing app.
BY MICHAEL WALSH / NEW YORK DAILY NEWS
Facedeals, from marketing firm Red Planet, uses your Facebook photos to identify you in stores so you can get personalized offers and discounts. "The idea is not to invade privacy, which is a big issue right now," says Samantha Anderson, business director at Red Pepper. "Your face wouldn't be in any sort of database unless you opt into it."
Red Pepper — an advertising agency specializing in marketing technologies — has announced that it is finalizing testing for Facedeals, a facial recognition-marketing app. Still in its preliminary stages, the software has generated criticism from those who think this technology crosses the line. For others, however, Facedeals represents the next exciting step in customizable marketing.
Court Orders a Halt on Construction
of Brazil's 11 GW Hydroelectric Dam
By James Burgess - OilPrice.com
Celebrations abound for the environmentalists and indigenous tribes opposing Brazil's Belo Monte dam after a federal appeals court ordered construction of the giant hydroelectric project to be suspended until local communities are properly consulted about the possible consequences of the dam.
Souza Prudente, the federal judge that made the ruling, said that "the court's decision highlights the urgent need for the Brazilian government and Congress to respect the federal constitution and international agreements on prior consultations with indigenous peoples regarding projects that put their livelihoods and territories at risk. Human rights and environmental protection cannot be subordinated to narrow business interests."
Iran threatens to disconnect from the Internet Politically, socially, the regime can't cut the cord
By Justin Rohrlich
NEW YORK (MarketWatch) — In April, Mikko Hypponen, chief research officer of F-Secure, a Finnish computer security firm, received an unusual email. It came from a scientist working at the Atomic Energy Agency of Iran, and read:
"I am writing you to inform you that our nuclear program has once again been compromised and attacked by a new worm with exploits which have shut down our automation network at Natanz and another facility Fordo near Qom.
Iran's nuclear program designed
to 'finish off' Israel, Hezbollah MP says
The entire equation in the Middle East will change,
Walid Sakariya tells al-Manar TV
By ILAN BEN ZION - TimesOfIsrael.com
Hezbollah MP Walid Sakariya told Lebanese television this week that the nuclear weapon Iran is allegedly developing is intended to annihilate Israel.
In a segment recorded and translated by MEMRI (the Middle East Media Research Institute), Sakariya, also a retired general, told his interviewer on Hezbollah's al-Manar TV Tuesday that should Iran acquire a nuclear weapon it would serve Syrian as well as Iranian interests, namely the eradication of the Jewish state.
Is Israel's Rush to Strike Iran Based on U.S. Politics?
By the Editors - Bloomberg.com
Israeli officials are warning they might have to launch an attack on Iran's nuclear facilities, perhaps even before the U.S. presidential election in November. Israel's concerns about a nuclear-armed Iran are well-founded, but this speeding up the timeline on a potential strike is ill- judged.
What is the sudden urgency? Nobody has been able to point to a recent game-changing event in Iran. Michael Oren, Israel's ambassador to the U.S., was asked Wednesday by Bloomberg News whether it was tied to U.S. politics, the idea being that Israel might have more leverage to influence U.S. responses during an election campaign than after. He dismissed this.
Will Egypt cancel peace treaty with Israel?
A former envoy thinks it might, but most experts disagree Muslim Brotherhood leaders are skilled at realpolitik, says one academic. 'They have their Islamist ideology, but they also have a ladder to come down from when reality intervenes'
By RAPHAEL AHREN - TimesOfIsrael.com
Now that President Mohammed Morsi has ousted the leadership of Egypt's armed forces, will his next step be to cancel the peace treaty with Israel?
According to former Israeli ambassador to Egypt, Eli Shaked, that's what the Egyptian "street" wants him to do, and it's certainly possible. "Egypt might take a step to abolish… diplomatic relations with Israel," Shaked told reporters Monday, "because this is actually until today the demand that is coming from the people in the street."
U.N. monitors quit, saying Syrians choose "path of war"
By Dominic Evans and Hadeel Al Shalchi
BEIRUT/ALEPPO | Thu Aug 16, 2012 6:47pm EDT
(Reuters) - Syria's government and rebels have "chosen the path of war", a U.N. peacekeeping chief said as the world body ended its doomed monitoring mission to Damascus and deadlock persists among world powers over how to contain the spreading conflict.
Two weeks after former U.N. secretary-general Kofi Annan quit as mediator in frustration with the failure of a four-month-old truce, military observers have no peace on the ground to monitor and U.N. officials said on Thursday the last of the few dozen remaining team members would quit Damascus by August 24.
Syria's conflict has crossed the border,
and the ghost of Lebanon's civil war returns Kidnappings in Beirut highlight a sectarian divide
made worse by neighbouring violence
By Robert Fisk - Independent.co.uk
Lebanese kidnappings 'stir memories of civil war'. Gulf Arabs flee Beirut. Lebanese Hezbollah sends 1,500 men to help Bashar al-Assad. Ex-Lebanese minister charged in Syria terror plot. The 'spill-over' – it's become the new cliché for Lebanon in the shadow of Syria's war – is fast becoming as dishonest as the lies invested in its promotion. So like gangrene, fear spreads across Lebanon when it needs a surgeon's dissection.
First, the kidnappings, 20 of them, all Sunni Muslims – Syrian businessmen, a Turk and a Saudi – near the airport road in Beirut, a highway controlled by the pro-Iranian, pro-Syrian and very much Shia Muslim Hezbollah. The Saudis, the Emiratis and Qatar have urged their citizens to flee the fleshpots of Beirut. And yes, kidnappings were fuel to the fire of the first weeks of the 1975-90 Lebanese civil war. But the reason for these abductions is a lot less clear.
Disney Developing 'Physical Face Cloning'
LAKE BUENA VISTA, Fla. (CBS Tampa) – Scientists employed by the Walt Disney Company have developed technology that allows them to replicate, with near perfect accuracy, the very versatile human face.
Documents posted on the official Disney Research website details plans for what they refer to as physical face cloning.
"We propose a complete process for designing, simulating and fabricating synthetic skin for an animatronics character that mimics the face of a given subject and its expressions," the document states.
Physical Face Cloning
We propose a complete process for designing, simulating, and fabricating synthetic skin for an animatronics character that mimics the face of a given subject and its expressions. The process starts with measuring the elastic properties of a material used to manufacture synthetic soft tissue. Given these measurements we use physics-based simulation to predict the behavior of a face when it is driven by the underlying robotic actuation. Next, we capture 3D facial expressions for a given target subject. As the key component of our process, we present a novel optimization scheme that determines the shape of the synthetic skin as well as the actuation parameters that provide the best match to the target expressions. We demonstrate this computational skin design by physically cloning a real human face onto an animatronics figure.
Future of Data: Encoded in DNA
By ROBERT LEE HOTZ - WSJ.com
In the latest effort to contend with exploding quantities of digital data, researchers encoded an entire book into the genetic molecules of DNA, the basic building block of life, and then accurately read back the text.
The experiment, reported Thursday in the journal Science, may point a way toward eventual data-storage devices with vastly more capacity for their size than today's computer chips and drives.
"A device the size of your thumb could store as much information as the whole Internet," said Harvard University molecular geneticist George Church, the project's senior researcher.
The Singularity: Science's Quest
For Immortality And Satan's Deception
By Beginning and End
In Russia in March of 2012, the Global Future: 2045 Conference or 'GF2045′ held to focus on the Singularity – the moment when humanity will physically combine with machines to allow for humans to live outside of the physical body, with robot "avatar" bodies and overcome disease, pain and even death. While it sounds like the stuff of a science fiction movie, it is a very real movement and field of study for scientists who believe that humanity is on the cusp of its next stage of evolution. And it once again reveals an attempt to reach immortality without the God of the Bible.
As the conference states on its own website:
The Global Future 2045 Congress is a nonprofit organization with the goal of creating a network community with the world's leading scientists in the field of life extension and to support them as an investment hub, contributing to various projects.
Health Ranger, Mike Adams, is on the Singularity bandwagon of transformational consciousness and divine liberty (apart from God, of course). This form of deception will wax worse so be aware of where these high profile, well-intended individuals are leading. The Singularity 'revelation' will be the biggest 'news' in the very near future; a blurry dividing line between truth with an abundance of lies confusing those who don't know God - it is a powerful deception with a common denominator - that man can become like God, so take the transformation leap of faith or be left behind in your ignorance. What you really need to do in the face of deception is stand your ground in the Lord Jesus Christ grounded in the word.
An introduction to Divinity Now:
Consciousness and the Creator, cosmology,
divine liberty and more
by Mike Adams, the Health Ranger
(NaturalNews) Welcome to Divinity Now, an exploration of conscious cosmology. "Conscious" means we each have a soul, a sense of self awareness, and free will to decide our actions. "Cosmology" is the study of the physical universe and its origins.
Conscious cosmology stands in contrast to conventional ("scientific") cosmology, which believes in what I call "zombie cosmology" -- a dead universe where there is no consciousness, no souls, no minds, no free will and no Creator. Zombie cosmology is the dominant belief system among conventional scientists today. They do not believe in God or a Creator, they do not believe in consciousness, and they don't even think human beings are "alive" with a spirit and free will. This view is closely held by physicists such as Stephen Hawking who declare that religion is a "fairytale for people who are afraid of the dark." He also says that human beings have no free will and are merely "biological robots" who therefore have no responsibility for their own actions.
NaturalNews seeks grassroots visual storytellers
to spread the word of awakening and transformation
by Mike Adams, the Health Ranger
(NaturalNews) We are reaching out to the grassroots NaturalNews community to help us tell our story in a series of short viral videos to be released on YouTube. We're welcoming NaturalNews readers and activists to participate, and financial compensation is provided based on performance of the video (contact us for details, see below).
NaturalNews is rapidly growing, expanding its reach by leaps and bounds. Our "talked about" numbers on Facebook are the highest in the industry, and our genuine monthly traffic of readers dwarfs MSNBC and other mainstream news sites. At times, our traffic has even exceeded the BBC. (See Alexa.com for our traffic stats.)
Here's what they want us to accept (first you have to swallow the lie of 'evolution') and as a PhD tenured professor, he wants you to take this seriously... What's coming is a deep divide between those who believe in God and creation, and those who don't. Those who couldn't care less will be deceived.
Technological Singularity Evolution:
Wormhole to The Future of Humanity
Dr. Eamonn Healy, Irish Scientist and Professor of Chemistry at St. Edward's University in Austin, Texas, speaks about how the technological singularity may occur in humankind and how our integrated consciousness may become a counter-intuitive, individual-driven evolutionary process rather than a process which is at the whim of the collective. This could ultimately result in humanity becoming a non-gregarious, cybernetic species with access to multiple consciousness and eventually immortality. This would emanate in our evolution towards a galactic civilization.
And you thought the bible was unbelievable, yet people are actually buying this concept...
41 Years After The Death Of The Gold Standard,
A Look At "How We Ended Up In This Economic Purgatory"
Submitted by Tyler Durden - ZeroHedge.com
As we await the latest developments out of the Eurozone and Washington, JPMorgan's Kenneth Landon takes a moment to look back on this very important day in history. If you want to understand current events, then you first have to understand history. How did we get here? More specifically for financial markets, how did we end up in this mess -- this economic purgatory? This being August 15, 2012, students of the history of monetary economics no doubt are aware that this is the 41th Anniversary of the breakdown of Bretton Woods. It was on this day 41 years ago that President Nixon defaulted on the promise to exchange gold for paper dollars presented for exchange by foreign central banks. The crisis in confidence that we observe today resulted from cumulative effects of those measures.
Economic recovery rockiest since Depression Spending, jobs lag, study shows
By Paul Wiseman - AP - WashingtonTimes.com
The recession that ended three years ago this summer has been followed by the feeblest recovery since the Great Depression, according an extensive review of the country's economic ups and down over the past eight decades.
Since World War II, 10 U.S. recessions have been followed by a recovery that lasted at least three years. An Associated Press analysis shows that by just about any measure, the one that began in June 2009 is the weakest.
The economy: Less bad or much worse
By Thomas H. Kee Jr. - MarketWatch.com
No matter who is elected, the same unavoidable truths exist. The United States has too much debt, deficits are not under control, and something needs to be done to stem the problem. Everyone knows what needs to be done, and people have different ways of going about it, but no matter who is elected, the same thing is going to happen. Taxes will increase, and spending will decline, or what is already bad is going to get measurably worse.
With Ryan as the running mate, the new look of the Republican campaign is becoming ever more attractive to the wealthy. Proposals to slash government payrolls are being thrown around in media circles, as is tax reform, but do not mistake tax reform with lower taxes overall.
Will the Thursday Philly Fed Release
Mark Another Major Low in the Markets?
BY CHRIS PUPLAVA - FinancialSense.com
The Philly Fed gives an early look at the monthly ISM data since it is released mid-month. The Philly Fed data for August comes out on the 16th (Thursday) while the August data for the national ISM numbers comes out the first week of September. The Philly Fed is VERY depressed at a reading of -12.90 and we often see big snapback rallies in the Philly Fed after plunges just like in 2010 and 2011. Please note that the summer trading range in the S&P 500 was broken BECAUSE of the Philly Fed going from a negative 17.5 to a positive 8.7 for October when it was released on 10/20/2011.
Fed's Fisher says more policy easing won't help on jobs
Reporting by Ann Saphir
(Reuters) - The president of the Dallas Federal Reserve Bank, Richard Fisher, on Wednesday repeated his view that more monetary policy easing will not help boost employment and could even hurt the U.S. economy because it could exacerbate market uncertainty.
Fisher, an inflation hawk, has remained a staunch opponent of more policy stimulus even as some policymakers at the U.S. central bank, including San Francisco Fed President John Williams, say the Fed should act to try to push down stubbornly high unemployment.
No 'QE3' in September? Better data raise doubts of quick Fed easing move
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — The better tone of the economic data in the two weeks since the Federal Reserve's last policy meeting have caused some Fed watchers to doubt that the central bank will launch another massive bond purchase program next month.
Jan Hatzius, chief economist at Goldman Sachs, wrote a note to clients on Tuesday saying the data reduces the probability of QE3 in September.
Why QE Is Not Working
Submitted by Tyler Durden - ZeroHedge.com
Up until now we were a lone voice in the wilderness, with our "dry-humored" Transatlantic colleagues, working for a newspaper funded with Goldman Sachs advertisements, periodically mocking our "misunderstanding" of credit and money creation. We are now delighted that none other than one of the foremost opinions on all topics "shadow" stood up this week, and admitted that indeed, it is Zero Hedge whose view on money creation is the correct one. Behold several absolutely critical observations by Citi's Matt King. The same Matt King who a week before the collapse of Lehman wrote "Are The Brokers Broken" and explained to all those who had heretofore been reading and basing their understanding of finance on the above-mentioned Transatlantic newspaper, why everything they know about the modern financial system is wrong. Lehman filed for bankruptcy 12 days later. Unless and until this $3.8 trillion 'shadow banking' hole is plugged, one thing is certain: risk is not going anywhere.
6 U.S. Cities on the Edge of a Fiscal Cliff With Moody's recent warnings and downgrades, these municipalities may follow the likes of Stockton and Central Falls into bankruptcy
BY Dan Berman, Advisorone.com
Bankruptcy was once a last-ditch act reserved for companies and individuals. Declaring that creditors could not be paid carried a stigma that no one wanted to be associated with. And rarely would a municipality file for Chapter 9, the city version of Chapter 11. How times have changed.
Since 1981, 42 U.S. cities and towns have filed for bankruptcy. The pace has picked up with 10 in the last four years and many others teetering on the brink of insolvency. Recent cities taking the plunge include Mammoth Lakes and Stockton in California, and Central Falls, R.I.
High Frequency Trading takes on a life mind of its own. Will HFT Lead to Machine Self-Awareness?
BY CRIS SHERIDAN - FinancialSense.com
Finance is no longer a field dominated by MBA's. Hacked decades ago by computer scientists, astrophysicists, and mathematicians specializing in string theory, the market now resembles something more along the lines of a gargantuan cybernetic experiment.
If you think that sounds a little too crazy you simply haven't been paying attention.
Algorithms are quickly proliferating throughout the global financial system—buying and selling at speeds faster than humans can perceive, think, or react. What's more? By machines—high frequency trading (HFT) algorithms to be exact—quickly adapting to their environment and, most importantly, to other machines, which are in turn adapting to them, they are accumulating a basic level of self-awareness through a positive feedback loop. Given the exponential rate of technological advancement—often cited as Moore's Law—there's a strong chance we'll see the watermark of this self-awareness rise to the point where it is indistinguishable from human.
The Next One will be the Big One
By Greg Hunter's USAWatchdog.com
I don't see how anyone could say the financial system is stable. The facts say it is anything but well-balanced and steady. The Western world is in crisis with Europe leading the way over the financial cliff. Pick a country in the EU. France, Greece, Spain or Italy are all capable of causing the next financial panic. I can't tell you how many times I've heard or read the word "collapse" in reporting on this spiraling financial crisis. On Monday, German media giant Der Spiegel ran a headline that read "Investors Prepare for Euro Collapse." The story said, "Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt." If the Euro goes down, the dollar will follow probably after a short spike. This is just one of many recent examples of the fragility of the financial system.
Who really killed the Bowles-Simpson debt plan?
James Pethokoukis - AEI-Ideas.org
Did Paul Ryan derail the Bowles-Simpson debt commission? That seems to be the meme of the day, thanks to this story in Politico.
Yes, Ryan voted against the plan. But before we analyze his actions back then, let's recall what President Obama didn't say back in December 2010 after the debt commission — the commission Obama himself created — released its proposals:
I want to thank the members of the National Commission on Fiscal Responsibility and Reform for their important work in highlighting the magnitude of the challenge before us, and outlining an array of options to confront it. Unfortunately, the plan fell just short of getting enough votes from the commission's other panelists to automatically send it the U.S. Congress for a vote.
Morgan Stanley Unit Fined Over Trader's $1.3 Billion Bet
By Laura Marcinek and Donal Griffin - Bloomberg.com
Morgan Stanley (MS) Smith Barney, the brokerage venture of Morgan Stanley and Citigroup Inc. (C), was fined $450,000 after a trader amassed a $1.3 billion bet in 2009, Financial Industry Regulatory Authority records show.
The brokerage didn't have enough controls in place to detect that Jared Weinryt, 31, had breached his $116 million trading limit as he made overnight bets on futures, Finra said this month. The trades led to losses for Morgan Stanley Smith Barney of about $14.9 million, according to Finra.
Treasuries Fall For Fourth Day Before Housing Starts Data
By Wes Goodman - Bloomberg.com
Treasuries fell for a fourth day before a report economists forecast will show new-home construction in the U.S. was close to the most since 2008.
Ten-year yields, the benchmark for home mortgages and corporate bonds, climbed to the highest level in 13 weeks. Reports on jobs, consumption and factory production this month all pointed to improvement in the U.S. economy, curbing demand for the relative safety of Treasuries as stocks gained.
Soros Exits Goldman Sachs, JPMorgan, Adds To Gold Position
By Geoffrey M - ValueWalk.com
George Soros, through his Soros Fund Management LLC investment management firm, filed his 13F form today with the SEC, indicating some interesting position changes and new investments. Most notably, Soros exited a number of financial firms, such as Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM). Interestingly, Soros no longer has any substantial positions in financial firms, whether in the United States, or globally.
How Paul Ryan spurned deficit commission
By STEVEN SLOAN and JOHN BRESNAHAN | Politico.com
He was enthusiastic, earnest, courteous and well-informed. Rep. Paul Ryan, in other words, certainly knew how to play the role of a sleeves-rolled-up, problem-solving deficit hawk as a member of the high-profile Simpson-Bowles budget commission.
In the end, however, that was not the role Ryan chose to play — he was more of a loyal GOP partisan who wasn't willing to step out on his own.
Goldman Bought Knight Capital Stock Before Malfunction
By Laura Marcinek - Bloomberg.com
Goldman Sachs Group Inc. (GS) and Vanguard Group Inc. increased holdings in Knight Capital Group Inc. (KCG) during the second quarter before the market-making firm lost $440 million on a computer malfunction this month.
Brokerage and asset-management units at Goldman Sachs increased their stakes in Knight Capital by 73 percent to 2.39 million shares, valued at $28.5 million at the end of June, according to a regulatory filing yesterday by the New York-based bank. The subsidiaries' convertible-debt holdings climbed by $2.5 million to $60.5 million, the filing shows.
LIBOR Scandal Widens to Include 7 Banks
By Alex Klein - TheDailyBeast.com
Barclays was just the first bank implicated in the LIBOR rate-manipulation scandal. New reports say seven banks are being subpoenaed in the investigation.
When Barclays copped to manipulating LIBOR (the London Interbank Offered Rate), benchmark rates that underpin trillions in assets worldwide, most observers were left waiting for the other shoe to drop. To be sure, the British bank has fired executives. It faces a $450 million settlement, not to mention questions about collusion with the Bank of England. And there is the questionable response on the part of the New York Federal Reserve. But even a cursory reading of the LIBOR figures strongly suggested that it would take more than a few traders at one bank to shift the rates around, and rip off millions.
Seven banks subpoenaed over LIBOR rate-fixing
By Michael Virtanen, Associated Press - USAToday.com
ALBANY, N.Y. – The attorneys general of New York and Connecticut have issued subpoenas to seven banks over the possible manipulation of a global interest rate, a person with knowledge of the matter told The Associated Press on Wednesday.
Subpoenas were issued, mostly last month and this month, to Barclays, Citigroup, Deutsche Bank,JPMorgan Chase, HSBC, Royal Bank of Scotland andUBS, the person said.
The person spoke on condition of anonymity because the person was not authorized to discuss the matter publicly.
Just Another Successful Businessman—Destroyed:
The Ordeal of Greg Reyes
BY WALTER DONWAY - FinancialSense.com
Quite long ago, Whittaker Chambers said: "The great failing of American conservatives is they don't retrieve their wounded." That bitter reflection, but as applied to American businessmen, came to mind when I finished reading the story of Greg Reyes, a second-generation Cuban immigrant who rose through sheer talent, productivity, and vision to become, at 36, the CEO of Brocade Communications—a Silicon Valley company that revolutionized computer-storage technology (and whose revenues he increased twenty-fold in three years)—and then found himself sentenced to prison, his wealth destroyed, his career and life blown to bits. The crime of which he was convicted was the violation of a complex accounting regulation. The prosecution, even by advertising nationally, could find no investor who could assert coherently that the "misstated" information had any impact on their investment decisions.
Some federal pensions pay handsome rewards
By Dennis Cauchon and Paul D'Ambrosio - USAToday.com
More than 21,000 retired federal workers receive lifetime government pensions of $100,000 or more per year, a USA TODAY/Gannett analysis finds.
Of these, nearly 2,000 have federal pensions that pay $125,000 or more annually, and 151 take home $150,000 or more. Six federal retirees get more than $200,000 a year.
Ponzi Scheme Taken Down in Denver
By Jon C. Ogg - 247WallSt.com
As if the Bernie Madoff scandal was not enough… The Securities and Exchange Commission has just announced this Tuesday that it has new fraud charges as well as an emergency asset freeze against a Denver-based company. The SEC charges include Bridge Premium Finance LLC, as well as two individuals (Michael J. Turnock of Denver and William P. Sullivan II of Highlands Ranch).
The SEC allegations noted that they sold promissory notes to investors through Bridge Premium Finance LLC, which purports to be in the business of insurance premium financing. As far as what was offered, it was annual returns of up to 12 percent by making short-term loans to small businesses to enable them to pay their up-front commercial insurance premiums.
President Obama's Ticking Greek Time Bomb Developments in Athens
suggest matters are spiraling out of control.
By Desmond Lachman - The American Magazine
The last thing that President Obama needs before the November election is a Greek exit from the euro. Such an event would surely cause contagion to the rest of southern Europe, which would in turn roil global financial markets. Yet the evidence coming out of Athens suggests that such a Greek event could very well occur over the next few months, with all of its adverse consequences for the U.S. and global economies.
Asian Banks Rush In Where Westerners Can't Afford to Tread
Matthew Miller - InstitutionalInvestor.com
CIMB Group Holdings, Malaysia's second-biggest financial services company, is finding opportunity at home from Europe's debt struggles abroad. In June the Kuala Lumpur–based lender completed most of its $250 million acquisition of Royal Bank of Scotland's equity holdings and investment banking businesses for Southeast Asia and Greater China. CIMB also is taking a stronger role in recent debt and equity fundraisings, serving as the principal adviser to last month's $2 billion initial share sale by IHH Healthcare in Malaysia and Singapore.
The Hoarding Continues: China Has Imported More Gold In Six Months Than Portugal's Entire Gold Reserve
Submitted by Tyler Durden - ZeroHedge.com
While the highly "sophisticated" traders that make up the gold market continue to buy or sell the precious metal based on whether the Fed will or will not do the NEW QE tomorrow (or just because, like Bruno Iskil, they have a massive balance sheet, and can create margin position out of thin air with impunity), China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasurys, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn't provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PBOC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.
Adam Smith lecture: Paper Money Collapse
Detlev Schlichter addresses the Adam Smith Institute Tuesday 22nd November, 2011. He argues that the present financial crisis is far from over; generally misunderstood and misrepresented, it is far from being a 'crisis of capitalism'. Detlev traces the history of failure of paper money systems and lays out why present policies pursued by various governments and institutions are misdirected and counterproductive.
U.S. Economic Recovery Is Weakest Since World War II
By PAUL WISEMAN - AP - DailyFinance.com
WASHINGTON -- The recession that ended three years ago this summer has been followed by the feeblest economic recovery since the Great Depression.
Since World War II, 10 U.S. recessions have been followed by a recovery that lasted at least three years. An Associated Press analysis shows that by just about any measure, the one that began in June 2009 is the weakest.
The ugliness goes well beyond unemployment, which at 8.3 percent is the highest this long after a recession ended.
22 Stats That Show How The Emerging One World Economy
Is Absolutely Killing American Workers
By Michael Snyder - TheEconomicCollapseBlog.com
For decades our politicians have promised us that the "free trade" agenda would bring us greater prosperity than ever before. They insisted that merging our economy into the emerging one world economy would cause millions upon millions of new jobs to be added to the U.S. economy. Unfortunately, it was all a giant lie. Trading with other countries is not a bad thing as long as the level of trade is fairly equal on both sides. When trade becomes very unequal, the consequences can be absolutely catastrophic. Since 1975, the United States has bought more than 8 trillion dollars more stuff from the rest of the world than they have bought from us. We are the only economy on earth that could have had 8 trillion dollars drained out of it and still be standing. Instead of leaving the country, those 8 trillion dollars could have gone to U.S. businesses and U.S. workers. If we could go back and have a "do over", how much more prosperous would we be today if we had kept that 8 trillion dollars inside the country?
Muni Bonds Not as Safe as Thought
By MARY WILLIAMS WALSH - NYTimes.com
Municipal bonds, widely seen as one of the safest investments, actually default more often than most people realize, according to research issued Wednesday by economists at the Federal Reserve Bank of New York.
The economists said the widely held belief that municipal bonds almost never default is based on only a narrow slice of the market — the safest part, consisting of bonds that are graded by the main ratings agencies when brought to market. When the researchers looked at a much broader sample, which included unrated bonds, they found there have been about 36 times as many municipal defaults over the past 40 years as the conventional wisdom suggests.
The Untold Muni Story:
Default Frequency Is Far Greater Than Reported
Submitted by Tyler Durden - ZeroHedge.com
Structural problems in state and local budgets were exacerbated by the recession and are likely to further restrain the sector's growth for years to come. As the NY Fed notes, the last couple of years have witnessed threatened or actual defaults in a diversity of places, ranging from Jefferson County, Alabama, to Harrisburg, Pennsylvania, to Stockton, California. But do these events point to a wave of future defaults by municipal borrowers? History - at least the history that most of us know - would seem to say no. But the municipal bond market is complex and defaults happen much more frequently than most casual observers are aware. As the NY Fed points out "the untold story of municipal bonds is that default frequencies are far greater than reported by the major rating agencies" but, until recently, investors could take some comfort from the fact that many municipal bonds - both rated and unrated - carried insurance that paid investors in the event of a default. But now that bond insurers have lost their AAA ratings, they no longer play a significant role in the municipal bond market, increasing the risks associated with certain classes and certain issuers of municipal debt.
NFL Sues Insurance Companies To Pay For Head Injury Lawsuits
By Edvard Pettersson - Bloomberg.com
The National Football League sued more than 30 insurance companies over their alleged refusal to pay for the defense of lawsuits against the league over head injuries suffered by former players.
The NFL is a defendant in at least 143 lawsuits by former players and their spouses, according to a complaint the league filed today in California state court in Los Angeles. The insurers, including Fireman's Fund Insurance Co. and TIG Insurance Co., have refused to defend the NFL in the injury lawsuits, according to the complaint.
Elder financial abuse described as 'epidemic'
By Tim Devaney - WashingtonTimes.com
Here's a scary fact: Your grandchildren are more likely to rip you off than a stranger.
Investment fraud targeting older Americans is a growing problem for many senior citizens who have trouble picking honest financial advisers, according to a new survey of financial professional advisers and consumer advocates.
According to the survey of more than 750 experts — including regulators, financial planners, social workers, law enforcement officials and lawyers — the most common financial abusers of the elderly are family members and caregivers.
Elderly suffer as financial abuse grows
By Christine Dugas, USA TODAY
Financial abuse of the elderly is getting worse, and most seniors don't know how to seek reliable financial help.
"There is no silver bullet that will end the financial abuse of America's seniors," says Don Blandin, president and CEO of the non-profit Investor Protection Trust (IPT), which released a survey Wednesday about elder exploitation. IPT conducted the survey after theConsumer Financial Protection Bureau requested more information about the problem.
Poor Hospitals Hit Hardest By New ObamaCare Rule, Analysis Shows; You Have to Pass It to Know What's In It
Ed Krayewski - Reason.com
An analysis by Kaiser Health News shows hospitals serving the highest proportion of poorer patients facing the largest reductions in Medicare reimbursement payments under a new rule penalizing hospitals that re-admit some patients within 30 days. The penalty maxes out at 1 percent. New Jersey's hospitals are hardest hit, with all but two in the statefacing penalties. The average penalty for New Jersey is .67 percent, the highest in the Kaiser analysis.
Though the penalty is a low percentage, it will cost more than 2,000 hospitals nationwide a total of $280 million in its first year. That number is small fries compared to another ObamaCare rule that threatens up to $10 billion in funding by 2019 to the same kind of hospitals that service a larger amount of poor patients; that rule cuts in half current reimbursements to hospitals that treat uninsured patients, including illegal immigrants, who are also barred under ObamaCare from purchasing insurance through healthcare exchanges the laws sets up.
Peter Schiff - The Real Crash: America's Coming Bankruptcy
Peter Schiff, CEO of Chief Global Strategist of Euro Pacific Capital, talks to Cambridge House Live's Jonathan Roth, at the World Resource Investment Conference in Vancouver - June 4, 2012.
2012 gas prices head for record
By Gary Strauss, USA TODAY
Gasoline prices are up sharply in the past month on surging crude oil costs and refinery woes, and now are likely to make 2012 the costliest year ever at the pump.
Nationally, gasoline averages $3.70 a gallon — up 30 cents since mid-July and is now higher than year-ago levels in 39 states. Prices are likely to continue climbing through August, with little relief until after Labor Day.
When Competition Is Cooked, Consumers Are Toast
BY SUSAN CRAWFORD - Wired.com
Federal Communications Commission and Department of Justice approval of the Verizon/SpectrumCodeal is inevitable. After the Bush-era Commission decided to unilaterally deregulate utility communications a few years ago, consolidation and harvesting by the companies involved has accelerated. In the "you take wireless, we'll take wired" world in America, in which Verizon and AT&T stick to their side of the ring and Comcast and Time Warner and the other local cable monopolies stay on theirs, the SpectrumCo transaction is an outcome, not a cause, of the primitive approach to communications that characterizes this country.
Bottom line: The companies involved in the transaction can credibly claim that the deal itself is not going to change the facts on the ground for most Americans. Without "merger-specific harms," and with an impressive display of bureaucratic sleight-of-hand – FCC got the spectrum part of the deal but DOJ got the joint marketing arrangements, and the two agencies have different statutory authority and DNA, leading to lots of finger-pointing and careful behavior – the companies will avoid being interfered with unduly by the feds.
Arizona order bars young illegal immigrants with Obama immunity from getting drivers license
Phoenix Business Journal by Mike Sunnucks
Young illegal immigrants granted immunity from deportation by President Barack Obama won't be able to get Arizona driver's licenses, identification cards or state public benefits for services via an executive order issued today by Gov. Jan Brewer.
Brewer's order says federal law allows states to deny a driver's license or offer public services and benefits to those in the new immunity program. The state order today prohibits the Arizona from issuing those licenses.
Some 'clerical error, huh?'... Hail of bullets?
National Weather Service says ammo request was 'clerical error'
By Jerry Seper-The Washington Times
The National Weather Service says it is not intending to arm its forecasters with high-powered weapons and ammunition — no matter how hot, cold, wet or windy it may get.
A purchase order issued Thursday seeking to buy 46,000 rounds of ammunition for use in National Weather Service offices in four states, including hollow-point bullets designed to cause extensive damage on impact and "frangible" ammunition used for close-quarter shooting when ricochets are unacceptable, actually was a "clerical error."
Apple in talks with to bring cable to new TV device
Silicon Valley / San Jose Business Journal by Cromwell Schubarth
Apple Inc. is reportedly trying to convince major cable providers to let it supply consumer TVs with their programming through one of its devices.
The Wall Street Journal cited unnamed sources Wednesday who said the Cupertino company hasn't reached any deals yet in what is seen as a big change in strategy.
Part of the problem that Apple has faced in the past has been cable operators' unease with letting the company gen an entry into their business.
Adobe Pulls Flash for Android From Google Play Store
By Scott Gilbertson - WebMonkey.com
Today's the day Adobe will pull its Flash Player plugin from Google's Android marketplace, marking the end of what was once touted as a key advantage of Android over Apple's iOS.
As we reported earlier, Google's new Android 4.1 "Jelly Bean" marks the end of the line for Adobe's certified version of mobile Flash Player. While the move shouldn't have been a huge surprise since Adobe already announced last year that it would cease development of its mobile Flash Player, it's still bad news for those that wanted an official version of the Flash Player on a Jelly Bean phone.
And now Adobe has limited access to Flash in the Google Play Store to any phone on this list of certified devices. For everyone else Flash on Android is a thing of the past.
Chrome Tightens the Leash on Adobe's Flash Player
By Scott Gilbertson - WebMonkey.com
Google's latest version of the Chrome web browser offers an even more secure, tightly sandboxed version of the browser's Flash Player plugin.
If you haven't already updated you can download Chrome 21 from Google. Existing users may need to restart their browser for any updates to apply.
At the moment the Flash Player improvements are only available to Windows users, but the change does apply to the entire Windows spectrum, covering everything from Windows XP (where Chrome is the only option if you want to keep Flash sandboxed) to the coming Windows 8.
Forget Apple, Forget Facebook:
Here's The One Company That Actually Terrifies Google Execs
By Nicholas Carlson - BusinessInsider.com
It's very easy to get caught up in the Android versus iPhone duel and Google's recruiting battles with its newly-public Silicon Valley neighbor, Facebook.
But neither one of those companies worry Google executives as much as another that is actively taking money out of their pockets.
This company is from Washington, but no, it's not Microsoft.
Google's real rival, and real competition to watch over the next few years is Amazon.
Google is a search company, but the searches that it actually makes money from are the searches people do before they are about to buy something online. These commercial searches make up about 20 percent of total Google searches. Those searches are where the ads are.
Trump's 'big surprise'
By EMILY SCHULTHEIS - Politico.com
This just in from Donald Trump's Twitter account:
@realDonaldTrump: Today I am working on my 'big surprise' for the @RNC convention. Everyone will love it.
Trump Declines Prime-Time GOP Convention Speech
By Jim Meyers - NewsMax.com - Thursday, 09 Aug 2012 12:56 PM
Donald Trump has declined an offer to deliver a prime-time speech at the Republican National Convention, sources with knowledge of convention plans tell Newsmax.
But Newsmax has learned that the billionaire businessman has been asked to deliver a big "surprise" at the convention in Tampa, Fla., which begins on Aug. 27.
Trump has already made plans to be the area at that time. On Aug. 26, he will receive the Statesman of the Year award from the Republican Party of Sarasota County, Fla., and is planning to remain in the area for the convention's opening festivities.
Lew Rockwell: Gov't is Far Worse Than The Mafia
On the Tuesday, August 14 edition of the Alex Jones Show, Alex talks with political commentator, activist, proponent of the Austrian School of economics, and chairman and CEO of the Ludwig von Mises Institute, Lew Rockwell. Rockwell served as Ron Paul's congressional chief of staff from 1978 to 1982. He hosts a popular website and is the author of Speaking of Liberty and The Left, The Right, and The State.
40 Points That Prove That Barack Obama And Mitt Romney
Are Essentially The Same Candidate
By Michael Snyder - EndOfTheAmericanDream.com
What a depressing choice the American people are being presented with this year. We are at a point in our history where we desperately need a change of direction in the White House, and we are guaranteed that we are not going to get it. The Democrats are running the worst president in American history, and the Republicans are running a guy who is almost a carbon copy of him. The fact that about half the country is still supporting Barack Obama shows how incredibly stupid and corrupt the American people have become. No American should have ever cast a single vote for Barack Obama for any political office under any circumstances. He should never have even been the assistant superintendent in charge of janitorial supplies, much less the president of the United States. The truth is that Barack Obama has done such a horrible job that he should immediately resign along with his entire cabinet. But instead of giving us a clear choice, the Republicans nominated the Republican that was running that was most similar to Barack Obama. In fact, I don't think we have ever had two candidates for president that are so similar. Yes, there are a few minor differences between them, but the truth is that we are heading into Obama's second term no matter which one of them gets elected. The mainstream media makes it sound like Obama and Romney are bitter ideological rivals but that is a giant lie. Yeah, they are slinging lots of mud at each other, but they both play for the same team and the losers are going to be the American people.
Mitt Romney's 5-point plan for the economy
Helped by an all-star team of advisers - and now Paul Ryan - the Republican candidate maps out ways to stimulate business.
By David Whitford with Doris Burke - Fortune.com
FORTUNE -- On the Friday after the Fourth of July, while the Romney clan was enjoying an extended midsummer break at the family manse on New Hampshire's Lake Winnipesaukee and photographers with telephoto lenses were snagging pictures of the candidate in swim trunks, real news was happening, unobserved, 100 miles away.
Nearly two dozen luminaries from the worlds of finance, government, and academe had gathered in secret behind smoked-glass windows in a three-story concrete office building on Commercial Street in Boston's North End -- Romney campaign headquarters -- for a meeting of the governor's recently assembled Economic Policy Steering Group. Some had only to cross the river from Cambridge. Others flew in from Chicago, D.C., and the West Coast. Tough duty in the middle of a holiday weekend, but as one participant says, anonymously, it was "for a good cause." Each had been requested by e-mail to "exercise discretion in keeping the contents of the discussion and the membership of the group private." Indeed, no one who was there will confirm for the record that the meeting even took place.
Paul Ryan: Bankrolled by the Banksters,
the Privatizers, and the Kochs
by Mary Bottari - PRWatch.org
....Ryan could have run every single one of his seven election cycles just like former U.S. Senator Bill Proxmire (D-WI), who ran statewide but only totaled about $1,000 for his nominating petitions and a handful of other expenses.
Instead, Ryan has decided to make himself beholden to some of the biggest corporate interests in America. FIRE (finance, insurance and real estate) poured $2.8 million into his races over the years so he could go mano-a-mano with the likes of John Heckenlively, an unemployed reporter who spent exactly $0 in his 2010 run against Ryan.
Charles Koch: Why We Fight for Economic Freedom
By Charles Koch - NewsMax.com
In 1990, the year before the collapse of the Soviet Union, I attended an economic conference in Moscow.
Like my father during his visits to the U.S.S.R. in the early 1930s, I was astonished and appalled by what I saw.
Simple necessities, such as toilet paper, were in short supply. In fact, there was none at all in the airport bathroom stalls for fear it would be stolen. Visitors using the facilities had to request a portion of tissue from an attendant beforehand.
Explaining Paul Ryan's Austrian approach to monetary policy
James Pethokoukis - AEI-Ideas.org
Paul Ryan's expertise is in fiscal policy, not surprising given that he's the chairman of the House Budget Committee. But what about his views on monetary policy? This from the Washington Post:
Like many other Republicans, he has repeatedly criticized Ben Bernanke's efforts to stimulate the economy. But he has also gone further, arguing that the Federal Reserve shouldn't be focused on reducing unemployment, period. And he has argued repeatedly for a "sound money" policy that has left some economists scratching their heads.
Romney-Ryan would target federal workers
By Jennifer Liberto @CNNMoney
NEW YORK (CNNMoney) -- Federal workers' jobs will be under fire if Mitt Romney and Paul Ryan win November's election.
Both Romney and Ryan have made it clear that they think federal workers are one reason the nation's deficit is too high, and have talked about shrinking payrolls and cutting benefits.
Medicare, Paul Ryan, and beyond: a primer Here's context to clarify the big entitlements debates
By Trudy Lieberman - CJR.org
Mitt Romney's choice of Wisconsin Rep. Paul Ryan as his vice presidential nominee elevates Medicare and Medicaid (along with Social Security) to Level A campaign issues. Ryan has emerged as a leading Congressional thinker and idea shaper for the GOP on fiscal matters, and his path cuts right through Medicare and Medicaid.
Consider the scale: Last year the Congressional Budget Office examined the "Path to Prosperity," his budget proposal for 2013, and found, among many other things, that it would cut federal health spending as a percentage of GDP from about 12 percent projected under current law to about 6 percent in 2030. That's huge. No wonder his proposals are controversial.
Extortion in high places... by Democratic Rep. Tim Bishop (N.Y.) Tim Bishop's bar mitzvah episode could spell trouble
By: John Bresnahan - Politico.com
Eric Semler wanted to throw his son a Bar Mitzvah bash that he would never forget — capped by a fireworks show near the hedge fund investor's Southampton, N.Y., home — but he needed Rep. Tim Bishop's help.
The fireworks company Semler hired hadn't received government permits needed to put on the display. So on May 21, with the party just five days away, Semler contacted the Democratic congressman and asked for his help.
Bishop agreed to intercede. But before Bishop and his aides completed their work on his behalf, Semler received a request from the congressman's campaign staff, according to documents obtained by POLITICO and multiple interviews: For a contribution of up to $10,000 to Bishop's reelection campaign.
Former Obama Adviser Takes the Fifth Former trade adviser and Democratic donor
allegedly involved in an illicit gold deal
BY: Adam Kredo - FreeBeacon.com
A former Obama administration trade adviser accused of plotting to purchase $10 million in gold from a Congolese warlord refused to detail his role in the illegal plot, invoking the Fifth Amendment more than 100 times during confidential court testimony, according to documents obtained by theWashington Free Beacon.
President Obama tapped oil mogul Kase Lawal, a prolific Democratic bundler and Clinton family confidante, to serve as a member of the White House's Advisory Committee for Trade Policy and Negotiations in 2010. Lawal's name no longer appears on the website.
McCain: Obama Should Dump Biden, Make Hillary VP
By Patrick Hobin - NewsMax.com
Piggybacking on his 2008 vice presidential pick's comments on Tuesday night, the Arizona Republican told Fox News he thinks "it might be wise" for President Barack Obama to reconsider picking Biden as his running mate and instead put Secretary of State Hillary Clinton on the ticket, according to Fox News.
"But it's not going to happen…If I were Hillary Clinton, I'm not sure I'd want to be on that team," he added. "I think that her ambitions, very frankly, are for 2016. And I'm not sure that would enhance that likelihood."
Drought and the Second Ethanol Crash
By Jen Alic - OilPrice.com
When gas prices plummeted during the recession and at least half of US ethanol producers went bankrupt in the 2008-2009 ethanol crash, ethanol production continued to increase. But ethanol will crash again in the face of a summer drought, and this time the crash will be more definitive.
The difference this time around is that the ethanol will not crash because of product value, but because of under-supply of feedstock, like corn.
New Microbial Fuel Cell can Produce Electricity from Waste Water
By Brian Westenhaus - OilPrice.com
Wastewater, more commonly thought of as sewage or gray water is estimated to use 3% of the electrical energy consumed in the United States and other developed countries.
Engineers at Oregon State University have made a breakthrough in the performance of microbial fuel cells that can produce electricity directly from wastewater. There have been other ideas pursued in the past, but the new technology can now produce 10 to 50 more times the electricity, by volume, more than most other approaches using microbial fuel cells, and 100 times more electricity than some.
A Few Insights Regarding Today's Nuclear Situation Nuclear Electric Production Is Already Declining
BY GAIL TVERBERG - FinancialSense.com
According to BP's Statistical Review of World Energy, the highest year of nuclear electric production was 2006.
There are really two trends taking place, however.
1. The countries that adopted nuclear first, that is the United States, Europe, Japan, and Russia, have been experiencing flat to declining nuclear electricity production. The countries with actual declines in generation are Japan and some of the countries in Europe outside of France.
2. The countries that began adopting nuclear later, particularly the developing countries, are continuing to show growth. China and India in particular are adding nuclear production.
UAE Signs $3 Billion Contracts to Secure Nuclear Supplies
By James Burgess - OilPrice.com
In order to supply its new nuclear reactors, the UAE's Emirates Nuclear Energy Corporation (ENEC), has awarded a group of six international companies to provide the nuclear fuel requirements to enable 15 years of operation. The contracts are valued at total of $3 billion.
ENEC will build four 1,400 MW nuclear reactors at the Barakah plant in the West of Abu Dhabi. The fuel supplied enable the power plant to generate 450 million MWh for the 15 year period that the contracts cover; starting in 2017.
Ruskies lurking in Gulf waters for weeks Silent Running Russian attack submarine sailed in Gulf of Mexico
undetected for weeks, U.S. officials say
BY: Bill Gertz - FreeBeacon.com
A Russian nuclear-powered attack submarine armed with long-range cruise missiles operated undetected in the Gulf of Mexico for several weeks and its travel in strategic U.S. waters was only confirmed after it left the region, the Washington Free Beacon has learned.
It is only the second time since 2009 that a Russian attack submarine has patrolled so close to U.S. shores.
The stealth underwater incursion in the Gulf took place at the same time Russian strategic bombers made incursions into restricted U.S. airspace near Alaska and California in June and July, and highlights a growing military assertiveness by Moscow.
Ex-CIA Analyst Tells Us The Real Reason Israel
Wants To Strike Iran Before The US Election
Michael Kelley
For months senior Israeli officials have said the "window of opportunity" for attacking Iran's nuclear facilities is "before the U.S. presidential election in November" because Iran's nuclear facilities will soon be in fortified underground bunkers out of the reach of Israeli bombs.
But former CIA analyst Ray McGovern believes that delaying Iran's nuclear capabilities is not the primary concern of a military strike, but simply the pretext.
Obama vs. Romney on Syria policy Election-year politics
make for difficult call amid complex civil war
By Guy Taylor-The Washington Times
If killing Osama bin Laden, untangling U.S. forces from Iraq and fighting a bare-knuckle drone war against al Qaeda are the Obama administration's foreign policy triumphs, its biggest stumble may be its failure to produce an international solution to what has become an all-out civil war in Syria.
Many foreign policy analysts agree that the Obama administration has done little either to effectively plan for or to prevent the violent sectarian bloodbath likely to follow if, as they predict, the power base around Syrian President Bashar Assad begins to crumble.
Crude Spikes On Renewed Mid-East War Fears
As Saudi Arabia Recalls Lebanon Citizens
Submitted by Tyler Durden - ZeroHedge.com
Paint is drying, so what is the best way to break the monotony? Why with renewed Iran war speculation of course. Sure enough, here comes Saudi Arabia to the rescue. From Reuters: "Saudi Arabia has ordered its citizens to leave Lebanon "immediately", the state news agency reported in an SMS alert on Wednesday. "The Saudi Arabian embassy in Lebanon calls all Saudi citizens to leave Lebanon immediately," the alert said, without elaborating." Making an imminent Iran attack far less likely, however, is an article in Bloomberg titled "Israel Plans Iran Strike; Citizens Say Government Serious." Of course anyone expecting Israel to launch a strike with every paper in the world blasting the above title as a headline may as well buy some Las Vegas 10,000 square foot haciendas because housing has "bottomed." For now however Brent is leaning on the side of caution, and is back to all time highs in EUR terms.
Iran admits giving WMDs to terrorists Rogue state threatens Israel over Syria
By Reza Kahlili - WashingtonTimes.com
Israel will be obliterated by chemical, microbial and nuclear bombs, Iranis warning, but those weapons of mass destruction will be used first on Tel Aviv by Hezbollah and Islamic Jihad at the start of a decades-old Muslim dream of destroying the Jewish state.
An alarming commentary last week in Mashregh, the media outlet ofIran's Revolutionary Guards, confirmed that the Islamic regime not only has WMDs but has armed its terrorist proxies with them. Mashregh speaks for the regime.
Iran is building, training militia in Syria, Pentagon saysTehran's help in fighting anti-government rebels is becoming glaringly obvious, says US defense secretary
By LOLITA C. BALDOR - TimesOfIsrael.com
WASHINGTON (AP) — Iran is playing a growing role supporting the Syrian regime and is helping to build and train a militia to fight opposition forces, US defense officials said Tuesday.
Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, told Pentagon reporters that the militia, which is generally made up of Syrian Shia forces, is being used to take the pressure off the Syrian regime forces, which have been at war for almost 18 months.
Possible war with Iran could be month-long affair:
Israel minister
by Jeffrey Heller; editing by Crispian Balmer
(Reuters) - War with Iran would probably turn into a month-long conflict on various fronts with missile strikes on Israeli cities and some 500 dead, Israel's civil defense minister said in an interview published on Wednesday.
"There is no room for hysteria. Israel's home front is prepared as never before," Matan Vilnai, a former general who is about to leave his cabinet post to become ambassador to China, told the Maariv daily.
The interview coincided with Israeli media reports over the past week suggesting that Israel might attack Iran's nuclear facilities before the U.S. presidential election in November.
Israel's civil defense chief assesses strike on Iran
By Amy Teibel - AP - WashingtonTimes.com
JERUSALEM — An Israeli attack on Iran's nuclear program could trigger a bloody monthlong war on multiple fronts, killing hundreds of Israelis or more, the Israeli Cabinet's civil defense chief warned in an interview published Wednesday.
It was the most explicit assessment yet of how the government sees events unfolding in the aftermath of an Israeli attack.
Matan Vilnai, who is stepping down as the "home front" Cabinet minister to become Israel's ambassador to China, described the scenarios toIsrael's Maariv daily at a time of heightened debate about the Iranian nuclear threat.
Khamenei: Zionist regime will disappear from map Iranian officials ramp up rhetoric ahead of Al-Quds Day; Israeli official responds, says statement "not aberration."
By HERB KEINON, JOANNA PARASZCZUK - JPost.com
With the US sending clear public signals to Israel that it is opposed to military action now against Iran, and a cacophonous debate on the matter in Israel, senior Iranian officials continue to threaten Israel with destruction.
Iranian Supreme Leader Ayatollah Ali Khamenei said Wednesday that he was confidant "the fake Zionist (regime) will disappear from the landscape of geography," Iran's Mehr News Agency reported.
Gold to bounce back to $1,900 by year end: Commerzbank Commerzbank analysts cite several factors that could help price climb, however. They list potential for further delays to the introduction of the European Stability Mechanism because a complaint against the ESM has been filed with the European Court of Justice, which could delay the decision of Germany's Federal Constitutional Court.
LONDON (Commodity Online): Potential for gold prices to reclaim $1,900 an ounce by year-end, said Commerzbank, the second-largest bank in Germany after Deutsche Bank.
According to the German bank, for now, gold is "refusing to budge," holding its own above $1,600 an ounce but unable to push much further.
Aaaand It's Gone: This Is Why You Always Demand Physical
Submitted by Tyler Durden - ZeroHedge.com
We have said it over and over, we'll say it again. For all those who for one reason or another would like to boycott the broken markets, yet trade gold in paper form, please understand thatall the invested capital is at risk of total loss and can and will be lost, commingled and rehypothecated, not necessarily in that order, with little to zero recourse and the residual claim on liquidating assets pushed to the very end of the queue. Because if Lehman, MF Global, Peregrine, and countless other examples were not enough, here comes Amber Gold: a gold-based investment ponzi scheme out of Poland, in which it is likely needless to say that the gullible investors never had actual possession of the gold. And when they tried, it was gone. All gone.
Gold and the Middle East crisis
By: Clif Droke - GoldSeek.com
The year 2012 has been relatively peaceful compared with the past 10 years. The lack of military aggression on the part of the U.S. has led many to believe that the America's days of military adventures are over. But as we'll see here, 2012 is simply a temporary respite in a longer-term "theater" of war that has only just passed the opening act.
The past decade has indeed been one of near constant strife and turmoil. Starting with 9/11 and the U.S.-led NATO invasion of Afghanistan, and later Iraq, the 10 years between 2001 and 2011 were characterized by ceaseless warfare. The military invasions in the Middle East have been followed by civil and military uprisings in Egypt, North Africa and elsewhere in the region. By contrast, 2012 might be styled a "quiet" year for the Mideast. A withdrawal of U.S. troops from Iraq began in mid 2009 and formally ended in late 2011.
Paulson, Soros Add Gold As Price Declines Most Since 2008
By Debarati Roy - Bloomberg.com
Billionaire investors George Soros and John Paulson increased their stakes in the biggest exchange- traded fund backed by gold as prices posted the largest quarterly drop since 2008.
Soros Fund Management more than doubled its investment in the SPDR Gold Trust to 884,400 shares as of June 30, compared with three months earlier, a U.S. Securities and Exchange Commission filing for second-quarter holdings showed yesterday. Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.
Stagflation is back, ready or not Commentary: U.S. revisiting economic woes of 1970s
By Irwin Kellner, MarketWatch
PORT WASHINGTON, N.Y. (MarketWatch) — The dreaded combination of stagnation and inflation has returned, bringing with it new challenges for policy makers, investors, business people and consumers.
As far as policy goes, it is tough enough to reduce unemployment. It is also no picnic to keep inflation at bay.
But it is a real challenge to deal with both at the same time, which is what policy makers must do when confronted with stagflation. This is because fighting one problem risks exacerbating the other.
Forget QE3, Let's Take Back QE2 If We Can
By Robert Weinstein - RealClearMarkets.com
NEW YORK (TheStreet) -- As the European market circles the drain, the Federal Reserve is increasingly expected to announce another round of quantitative easing. If the Fed moves forward it will have greater flexibility than its counterparts in Europe.
The S&P 500 ETF SPY (SPY) has moved well off June lows and is pricing in more money, more money, more money. It's unfortunate that we are left in this situation after government program after government program have not only failed but weakened our nation.
NFIB - Dear Administration, Are You Listening?
BY LANCE ROBERTS - FinancialSense.com
The National Federation of Independent Business released their monthly small business survey this morning showing a 4th consecutive decline to 91.2 in July from last month's reading of 91.4. Overall, sentiment is deteriorating with the notes from the press release reading like an obituary for the economy: "If it weren't for population growth, Gross Domestic Product growth would be about zero. More people eat burgers, get haircuts, drive a vehicle, etc. So, 1 percent population growth will support something like a 1 percent growth in spending. And that's our basic support level. Absent that (as in Japan and Eastern Europe where it's near zero), growth would be under 1 percent. And the NFIB indicators point to a continuation of just that kind of growth."
Ripping Off Retirees to Provide Banks With Cheap Capital Give Bernanke a Pink Slip
by MIKE WHITNEY - CounterPunch.org
You don't need to comb the pages of the Wall Street Journal or theFinancial Times to know what's going on with the economy. Just take a look at Bloomberg Bonds and skip-down to the price/yield section on 10-year US Treasuries. That will tell you everything you need to know.
As of Monday, yields are at 1.66%, a little higher than they have been lately, but still ridiculously low in what many people are calling the 4th year of the recovery.
Institutions Scream Ahead
Of Imminent Death Of Money Markets
Submitted by Tyler Durden - ZeroHedge.com
Previously we explained on at least two occasions (here and here) why the upcoming death of the US money market industry is not greatly exaggerated: quite simply, as we wrote back in 2010, the Group of 30, or the shadow group that truly runs the world (see latest members) decided some time ago that it would rather take the "inert" $2.6 trillion held in money markets, and not used to boost the fractional reserve multiplier, and instead have it allocated to such more interesting markets as bonds and stocks. As a reminder, Europe already achieved this last month when it cut its deposit rate to zero leading to a sequential shuttering of money market funds. The Fed, however, has to be far more careful to not impair the overnight General Collateral repo market which as everyone who understands the nuances of Shadow Banking knows is where all the bodies are buried, and as such has been far more careful in implementing such a shotgun approach.
Looking for a strong reversal in the dollar
By Avi Gilburt - MarketWatch.com
Last week, I presented an alternative scenario of the dollar being in a leading diagonal off its 2011 lows, and I am now going to adopt that as my primary count. In presenting this possibility, I noted that the larger structure fits a diagonal pattern more so than any other potential count, and the technicals even support such a perspective.
As for the smaller time-frame chart, we seem to be forming a diagonal from the prior highs we hit at the end of July. This diagonal is being counted as a 5-wave (c) wave to complete a larger 4th wave within the leading diagonal. In fact, as we noted in our trading room, the minimum target that the DX must hit to complete a wave 4 within this (c) wave diagonal is the 82.96 level, and that is exactly from where it turned down. Even though the ideal target region was slightly above that, we have hit the minimum level at which we can view wave 4 as having completed within this diagonal pattern, wherein we have a c=1.382*a relationship within wave 4.
Five Reasons Why The Government Is Destroying The Dollar
By Daniel R. Amerman, CFA - GoldSeek.com Overview
The United States government has five interrelated motivations for destroying the value of the dollar:
1. Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.
2. It is the most effective way to meet not just current crushing debt levels, but to deal with the rapidly approaching massive generational crisis of paying for Boomer retirement promises.
3. It creates a lucratively profitable $500 billion a year hidden tax for the benefit of the US government which is not understood by voters or debated in elections.
4. It is the weapon of choice being used to wage currency war and reboot US economic growth; and
5. It is an essential component of political survival and enhanced power for incumbent politicians.
Nouriel Roubini on Threats to the Global Economy
By Peter Coy - BusinessWeek.com
A professor at New York University and chairman of a consulting firm that bears his name, Roubini earned the nickname Dr. Doom for predicting hard times before the financial crisis began in 2008. He talks with Peter Coy about his current outlook.
Who's to blame for the economic mess we're in? Or is it all the fault of impersonal forces?
The underlying economic forces are partially independent of policy choices. I don't think that if [John] McCain had been elected, the economy would be any better than it is today. Maybe even worse. And therefore, I think that once you have a crisis, once you have too much debt or once you have painful deleveraging, that cost of deleveraging has to occur over a period of many years, and economic policy is not going to make much of a difference. However, policymakers do make a difference, because the Great Recession could have ended up a great depression if we had not learned the lessons of the Great Depression. The case of deleveraging, whether it's ugly or semi-ugly or less ugly, depends on doing some of the right things. I think that having massive monetary easing, having massive fiscal easing, having backstopped the financial system properly—sometimes not totally properly—made a difference. In Europe, in fact, where policy has been to accelerate the private- and the public-sector deleveraging, we are already double dipping. So policy can make a difference.
Keiser Report: Wall Street vs City of London (E326)
In this episode, Max Keiser and Stacy Herbert discuss the US empire stumbling into the City of London with a trickle down shakedown, after the British poodle bites the hand that feeds it. They also ask the Obama administration to either arrest the bankster for their crimes or to stop fining them as it only leads to a bigger crime wave to pay for the fines. And notice that a good way to censor the financial news is for banking fraudsters to lace their incriminating emails with expletives. In the second half of the show, Max Keiser talks to Karl Denninger of the Market-Ticker.org about high frequency trading and how to stop its use for front-running and fraud.
Stop Fooling Yourself... NO Entity On Earth Can Stop This
By Graham Summers - ZeroHegde.com
The markets are going bananas over the same tired assumption that Central Bankers have some magic solution up their sleeve.
Over the last five years, market participants have largely operated based on the "Bernanke Put" (the belief that no matter what happens Bernanke will somehow save us). I explained how this was a bluff in last issue of Private Wealth Advisory.
However, the ECB's Mario Draghi may have surpassed the Bernanke Put as the biggest bluff in financial history with his claim that the ECB will take action and that the actionwill "be enough" to solve the EU Crisis.
Euro zone slinks toward recession
By Howard Schneider - WashingtonPost.com
The European economy shrank over the past three months as slowing German growth and moribund conditions in France pushed the struggling region to the doorstep of recession.
The 0.2 percent slide from April through June included the 17-nation euro area, a currency union beset by twin government debt and banking crises, and the larger 27-nation European Union, a region at the core of the industrialized world and a key market for U.S. products and services.
The Big Four Economic Indicators: Update
BY DOUG SHORT - FinancialSense.com
Official recession calls are the responsibility of the NBER Business Cycle Dating Committee, which is understandably vague about the specific indicators on which they base their decisions. This committee statement is about as close as they get to identifying their method.
There is, however, a general understanding that there are four big indicators that the committee weighs heavily in their cycle identification process. They are:
• Industrial Production
• Real Income (excluding transfer payments)
• Employment
• Real Retail Sales
Jackson Hole soiree & QE A Hole in One?
BY BRIAN PRETTI CFA - FinancialSense.com
As we all know, the Fed's annual Jackson Hole soiree lays dead ahead and already the anticipation of yet another QE grows. You'll remember that a few years back the Jackson Hole conclave was used as the verbal launching pad for QE2, followed directly by Fed sponsored POMOs (permanent open market operations) as an opening monetary expansion act to QE itself. Whether the Fed this year engages in more verbal QE magic remains to be seen. What I hope is helpful is a little pre-Jackson Hole compare and contrast.
Japan's Debt: A Small Taste of the Coming Financial Implosion
By Bill Bonner - DailyReckoning.com.au
The big news went almost unnoticed. Bloomberg was there, however, and had this report:
Housewives With Frying Pans Protest Japan Tax Hike as Debt Soars
About 200 housewives marched down a shopping street in central Tokyo, beating pans with ladles and shouting slogans criticizing a government plan to double Japan's 5 percent consumption tax.
"Ordinary people like us have a limited amount of money we can spend each month," said Natsuyo Makabe, a protester who took part in three demonstrations in June against the tax as well as nuclear energy and a free-trade pact. "Ninety-nine percent of the public will have to cut back on what they buy."
China Is Running Out Of Money
By Gordon G. Chang, Contributor - Forbes.com
Last week's release of disappointing economic and trade data for July has, predictably, renewed calls for additional stimulus. In May, Beijing ramped up its support for the economy, and observers had expected activity to pick up by last month.
Why has the economy so far failed to respond? There are various reasons, but perhaps the most important is that the country is running out of money for stimulus.
Hamburg Harbor Hurt As Europe Debt Crisis Hits China
By Niklas Magnusson and Jan-Henrik Forster - Bloomberg.com
Growth in Hamburg is stalling as Europe's fiscal crisis spreads into China and Russia, threatening the recovery of Germany's biggest port.
Hamburger Hafen und Logistik AG, which handles two thirds of containers in Hamburg, cut its forecast for 2012 on July 25, saying it now sees container throughput at the same level as last year, compared with an earlier 5 percent growth estimate. Such an increase would have led to volumes exceeding the record 7.3 million standard containers handled in 2008, the year before the global financial slump prompted a 33 percent drop.
Keiser Report: Jamieville, Crookland (E327)
In this episode, Max Keiser and Stacy Herbert discuss Jamie-villes in Ohio, suicide dummies in Vegas and truckloads of evidence piling up outside the Justice Department and yet no fraud can be spotted. In the second half of the show, Max Keiser talks to John Aziz of Azizonomics.com about rehypothecation and deal flow in the City of London, the Cantillon effect and the cram down.
Why US Postal Service deserves to go broke
By John Crudele - NYPost.com
Sometimes I have to give rapid-fire thoughts on a lot of things to make everything fit into my allotted space, which really isn't a lot. This is one of those columns.
The US Postal Service deserves to go broke.
The Post Office said last week that it lost an astounding $5.2 billion in the last three months. And like every other poorly run company it is asking for Congress' help. The Post Office is using the same blackmail tactic everyone else does: jobs are at stake.
Sorry, PO, but fix your most glaring problem first.
Snap! Crackle! Pop!…Goes the Student Loan Bubble!
By Dan Amoss - DailyReckoning.com
08/13/12 Jacobus, Pennsylvania – It's May 2013 on an ivy-draped college campus. You just graduated with a degree in English. In 2009, you borrowed $50,000 from the US Department of Education's Direct Loan Program. Job searches for teaching and journalism positions have been fruitless. Within a matter of weeks, you must start making loan payments on a waiter's wages and tips. On sleepless nights, you fear what defaulting on this loan will mean down the road.
How Obama Is Robbing The Suburbs To Pay For The Cities
By Stanley Kurtz - Forbes.com
Political experts left and right agree: the coming election will be decided by America's suburbanites. From Florida to Virginia on across the country, in every battleground state, they are the key demographic. All of which raises a question that has not been considered as yet, and ought to be: is President Obama's re-election in the suburbanites' interest? The answer emphatically is no.
As many Americans do not know, in the eyes of the leftist community organizers who trained Obama, suburbs are instruments of bigotry and greed — a way of selfishly refusing to share tax money with the urban poor. Obama adopted this view early on, and he has never wavered from this ideological commitment, as a review of his actions in office goes to show.
The Final Lesser-Evil Election? Why Voting for Democrats Doesn't Help Working People
by SHAMUS COOKE - CounterPunch.org
Just when the Obama campaign couldn't appear any less inspiring, Paul Ryan was put forth as the Republican vice presidential candidate. Suddenly team Obama was supplied with enough political munitions to scare every last American over the possible destruction of Medicare, Medicaid, cuts to Social Security and the various other evils inherent in Ryan's proposed national budget. Consequently, many Liberals and Leftists across the spectrum are now focused on preaching the horrors of a Republican presidential victory and thus the necessity of re-electing Obama.
Vice Presidential Nominee Paul Ryan
to Make Election a Budget War
BY DAVID ZEILER, Associate Editor, Money Morning
In naming Rep. Paul Ryan, R-WI, as his vice presidential nominee, Mitt Romney ensured that the 2012 election will be mainly about how the country ultimately deals with its massive budget deficits.
Romney, the presumptive Republican presidential nominee, made his running mate announcement Saturday morning in Norfolk, VA. The choice of Ryan completes the ticket that will face off against President Barack Obama and Vice President Joe Biden in November.
Don't Vote, Don't Fight ... Go on Strike! Time to Boycott the Election
by LINH DINH - CounterPunch.org
Here and now, voting is futile. Your vote doesn't count, at least not for anything that you believe in and want done. Your vote is only an endorsement of an illegitimate system that persistently and viciously works against all of your interests.
This political machinery cannot serve you, since its funders, its masters, are the banks and corporations that demand the cheapest possible labor, and profits by any means necessary, with no regards for human rights, their host communities or the environment. With your negligible salary, unemployment checks, welfare or food stamps, you simply don't count. You don't matter. Just as you may find street beggars annoying, your government sees you only as a nuisance, to be tranquilized with lies on television. If it could, it would deport you wholesale to Chinese sweat shops, and trumpet it as "The Right to Work Overseas Act."
* * * * *
Criminalizing Dissent
By Chris Hedges.com - Truthdig.com
I was on the 15th floor of the Southern U.S. District Court in New York in the courtroom of Judge Katherine Forrest last Tuesday. It was the final hearing in the lawsuit I brought in January against President Barack Obama and Secretary of Defense Leon Panetta. I filed the suit, along with lawyers Carl J. Mayer and Bruce I. Afran, overSection 1021 of the National Defense Authorization Act (NDAA). We were late joined by six co-plaintiffs including Noam Chomsky and Daniel Ellsberg.
This section of the NDAA, signed into law by Obama on Dec. 31, 2011, obliterates some of our most important constitutional protections. It authorizes the executive branch to order the military to seize U.S. citizens deemed to be terrorists or associated with terrorists. Those taken into custody by the military, which becomes under the NDAA a domestic law enforcement agency, can be denied due process and habeas corpus and held indefinitely in military facilities. Any activist or dissident, whose rights were once protected under the First Amendment, can be threatened under this law with indefinite incarceration in military prisons, including our offshore penal colonies. The very name of the law itself—the Homeland Battlefield Bill—suggests the totalitarian credo of endless war waged against enemies within "the homeland" as well as those abroad.
Fracking Hazards Obscured In Failure To Disclose Wells
By Benjamin Haas, Jim Polson, Phil Kuntz and Ben Elgin - Bloomberg.com
Seeking to quell environmental concerns about the chemicals it shoots underground to extract oil and natural gas, Apache Corp. (APA) told shareholders in April that it disclosed information about "all the company's U.S. hydraulic fracturing jobs" on a website last year.
Actually, Apache's transparency was shot through with cracks. In Texas and Oklahoma, the company reported chemicals it used on only about half its fracked wells via FracFocus.org, a voluntary website that oil and gas companies helped design amid calls for mandatory disclosure.
Chevron Refinery May Close for Six Months Following Fire
By Charles Kennedy - OilPrice.com
Investigators have checked over the site of the fire at Chevron's refinery at Richmond and have compiled their preliminary report. They have found extensive damage to the cooling towers, pipe racks, and the heat tower, leading IIR Energy, the industry intelligence group, to predict that the plant will be shut for at least four to six months.
Chevron could keep producing refined products by buying the intermediate feedstock from the market, although it will be almost impossible to secure enough of this type of oil to keep producing motor fuels at the same rate as before. They have not yet decided whether or not they will try to continue operations at the refinery.
The Mississippi River Is Drying Up
By Michael Snyder - TheEconomicCollapseBlog.com
The worst drought in more than 50 years is having a devastating impact on the Mississippi River. The Mississippi has become very thin and very narrow, and if it keeps on dropping there is a very real possibility that all river traffic could get shut down. And considering the fact that approximately 60 percentof our grain, 22 percent of our oil and natural gas, and and one-fifth of our coal travel down the Mississippi River, that would be absolutely crippling for our economy. It has been estimated that if all Mississippi River traffic was stopped that it would cost the U.S. economy 300 million dollars a day. So far most of the media coverage of this historic drought has focused on the impact that it is having on farmers and ranchers, but the health of the Mississippi River is also absolutely crucial to the economic success of this nation, and right now the Mississippi is in incredibly bad shape. In some areas the river is already 20 feet below normal and the water is expected to continue to drop. If we have another 12 months of weather ahead of us similar to what we have seen over the last 12 months then the mighty Mississippi is going to be a complete and total disaster zone by this time next year.
Wozniak: Web crackdown coming, freedom failing
Apple's co-founder fears that freedom of information is under attack, with the internet controlled and regulated in unnecessary and harmful ways. RT talked to Steve Wozniak on a range of topics, from Wikileaks to Megaupload founder Kim Dotcom.
Golly! Come November 14,
Will Zuck Be Selling Facebook Shares, Too?
By editors of YCharts - Forbes.com
A whole lotta Facebook (FB) shares are about to hit the market. As the New York Times, Bloomberg and others are pointing out, almost 2 billion shares will be hitting the market in the next few months. Lock-ups start expiring this week and will ultimately dwarf the shares currently trading.
The market won't be surprised if many of the current holders – including Goldman Sachs (GS) and Facebook employees — dump stock when they can. Early investors have reportedly cashed out $9 billion, and some mutual funds have also dumped shares. A former Facebook employee quoted in the story predicted employees would cash in stock options pronto.
The Social Media Implosion Continues
By Jon C. Ogg - 247WallSt.com
Is Groupon, Inc. (NASDAQ: GRPN) really a social media company? We might consider it a Web 2.0 (or 3.0) company instead, but the market is what the market is… Groupon has become a stick in the mud for just about all social media players today. The only amazing that we have seen so far today is that the Global X Social Media Index ETF (NASDAQ: SOCL) is not down worse than its current drop of 1.6% at $12.58. Groupon makes up just over 2% of the weighting of that ETF.
Facebook stock facing new pressure with new insider selling 'Lockup' period of share sales expires Thursday
By Tim Devaney-The Washington Times
Three months after Facebook's troubled launch as a publicly traded company, its stock this week faces yet another challenge that recently has hurt the values of other top social media companies, such as Angie's List, Groupon and Zynga.
Facebook investors are bracing for a big hit Thursday, when the first wave of its so-called "lockup period" expires and company insiders and early investors can cash in on their shares in the open market. The prospect of millions more shares flooding the market could add downward pressure to a stock that already has lost nearly half of its value since going public May 18.
Facebook dips its toe in online gambling waters
By Tim Devaney-The Washington Times
Facebook is placing a big bet on Internet gambling, but it's one critics warn it might not be able to cover.
The world's most popular social network recently turned bingo into a real-money game for its British users, and many see the move as an effort to find a new source of revenue for a struggling company that can't seem to get the money it needs via advertising.
Hypersonic jet: just one project to get you there faster
By Hayley Tsukayama - WashingtonPost.com
The world is getting smaller and moving faster, leaving many unsatisfied with the time it still takes to get anywhere these days. That's why there's been so much buzz around the X-51A Waverider — a hypersonic jet being tested Tuesday that is theoretically capable of going six times the speed of sound.
The jet is just one avenue of high-tech, high-speed transit floated over the years; here's a look at it and other projects hatched in the name of speed and where they stand today.
The Whiskey Rebellion
By Byron King - DailyReckoning.com
08/14/12 Pittsburgh, Pennsylvania – This could very well have been the Province of Westsylvania, part of British Imperial Canada. To the east, along a line of demarcation that follows the northeasterly arc of the Alleghenies, would be what was left of the United States of America, a collection of small, Northeastern coastal states that rely for survival on their wits as traders and seafaring merchants. To the south would be the Confederated States, an amalgamation of political jurisdictions that had long ago seceded from the failed Constitutional Compact of 1789. To the west of this spot would be the very large Province of Ohio, another jurisdiction of Canada, extending all the way to the Mississippi River. Abutting the west bank of the mighty Father of Waters would lie the French Department of Louisiana. West and southwest of the French possession would be the United States of Mexico, extending across the high plains and Rocky Mountains to the Pacific Ocean and bordering Canada to the north. Mexico would encompass the territory of Texas and extend far down through the old land of the Aztecs and well into the lands of the lost Maya.
First study reports very low internal radioactivity
after Fukushima disaster
By Hristio Boytchev - WashingtonPost.com
Japanese researchers have found very low amounts of radioactivity in the bodies of about 10,000 people who lived near the Fukushima Daiichi power plant when it melted down.
The first published study that measured the radiation within a large number of residents reassured health experts because the numbers reported imply only negligible health risks. The threat appeared to be considerably lower than in the aftermath of the Chernobyl accident, the experts agreed.
Homeland Security finishing acquisition
of millions of rounds of high-powered ammo
Jason Reed - Reuters
The Department of Homeland Security is rushing to finish the acquisition of 750 million rounds of high-power ammunition that has already raised many eyebrows. In one week, the DHS should start expecting an arsenal that will make some armies jealous.
The DHS has updated a solicitation originally posted on the Federal Business Opportunities website earlier this year, now answering questions from prospective contractors about an inquiry the agency published back in April. All responses to the DHS' request for hundreds of millions of rounds of high-power ammunition must still be sent in by August 20, but now the federal agency designated to thwart terrorism on the home front has answered some questions about what exactly they are looking for in terms of being able to blow stuff up.
Why does NOAA need hollowpoint ammo? Ammunition and Shooting Targets
Solicitation Number: DG-1330-12-RQ-1028
Agency: Department of Commerce
Office: National Oceanic and Atmospheric Administration (NOAA)
Location: National Weather Service
....The DOC NOAA National Weather Service - Western Acquisition Division - Boulder requires the following items, Purchase Description Determined by Line Item, to the following:
LI 001, 16,000 rounds of ammunition for semiautomatic pistols to be factory-loaded .40 S&W caliber, 180-grain jacketed hollow point (JHP). No reloads may be used with these weapons. All service furnished ammunition for issued firearms will be U.S. factory production.
Israel's 'Bomb Iran' Timetable Exclusive: As the clock ticks down to the U.S. elections in November, another clock is ticking in Tel Aviv and Jerusalem, whether Israeli forces should exploit the American political timetable to pressure President Obama to support an attack on Iran's nuclear sites, writes ex-CIA analyst Ray McGovern.
By Ray McGovern - ConsortiumNews.com
More Washington insiders are coming to the conclusion that Israel's leaders are planning to attack Iran before the U.S. election in November in the expectation that American forces will be drawn in. There is widespread recognition that, without U.S. military involvement, an Israeli attack would be highly risky and, at best, only marginally successful.
Chinese Warships Dock in Israel
DefenseNews.com
Tel Aviv — Three Chinese warships from the People's Liberation Army Navy (PLAN) docked in Haifa Aug. 13 for a five-day visit here as guests of the Israel Navy.
Led by Rear Adm. Yang Junfei, deputy commander of the PLAN's North China Sea Fleet, the Chinese contingent will tour multiple sites throughout the country in honor of the 20th anniversary of diplomatic ties between Jerusalem and Beijing.
'US message to Israel: Don't rely on us to finish the job in Iran' Channel 2 quotes source saying America won't necessarily join in an Israeli-started offensive; White House reiterates call to give diplomatic solution a chance
By AARON KALMAN and TIMES OF ISRAEL STAFF
The US would not necessarily join in were Israel to launch a military strike against Iran's nuclear program, an unnamed source in the Obama Administration told Israel's Channel 2 News on Monday.
The US feels a profound commitment to the defense of Israel, and so could be relied upon to protect Israel defensively from the consequences of an Israeli attack on Iran, the TV channel quoted the source as saying. But the thrust of the US source's message to Israel, the TV report said, was "don't rely on us to finish the job."
Defense secretary:
Iran is training local militias to fight Syrian rebels
By Carlo Muñoz - TheHill.com
Iran's elite Revolutionary Guard Corps are actively training and assisting local militias inside Syria to fight alongside government troops that are waging a civil war against rebel forces looking to oust embattled President Bashar Assad.
"Iran is playing a larger role in Syria in many ways," Defense Secretary Leon Panetta told reporters at the Pentagon on Monday. "There's now an indication that they're trying to develop ... a militia within Syria to be able to fight on behalf of the [Assad] regime."
Israel Encircled: Radical neighbors flare up fear of attack
Well, Israel's staying alert amid growing regional instability - with Prime Minister Netanyahu saying his country is investing billions in defense. With militants penetrating through Egypt, and Al-Qaeda-linked rebels fighting for power with the Syrian regime, the state's feeling increasingly surrounded by growing regional radicalism.
Syrian Humanitarian Crisis – As Food, Fuel Prices Soar al-Assad Desperately Attempts To Get Gold
Submitted by Tyler Durden - ZeroHedge.com
As was seen in Iraq, it is the people who suffer most from sanctions and economic and civil war and the Syrian people are indeed facing increasing hardships. Hunger is a problem that is growing more acute by the day. As the prices of what little food is available soar, there are increasing signs of desperation among parents seeking to feed families. Prices of fuel and medicine have also soared amid shortages compounding the misery of Syrians and leading to another humanitarian crisis. Professor Nouriel Roubini and other financial experts have pointed out that "you cannot eat gold." However,people in nations suffering from currency and economic wars can testify as to how they can use gold in order to buy food, fuel and medicine for their families in difficult times. To wit, Syrian President Bashar Al-Assad announced measures facilitating imports of gold bullion coins and bars. Gold bullion imports no longer require a special permit and travellers are allowed to bring gold bullion coins and bars with them into the country, the decree said. Gold is, as it has done throughout history, protecting them and their families from the ravages of currency devaluation and economic collapse.
Iran Clash Could Create Market Chaos
By Matt Egan - FOXBusiness
The financial world remains glued to the standoff in the Middle East between Iran and the West, searching for clues of an airstrike by Israel or even the U.S. that could plunge the region and financial markets into chaos.
While the chances of a conflict over Iran's nuclear ambitions before the end of the year seem unlikely, a slew of recent developments have kept the threat of war on jittery investors' radar screens.
Silver Hoard Near Record
As Hedge-Fund Bulls Recoil: Commodities
By Nicholas Larkin - Bloomberg.com
At a time when hedge funds are the least bullish on silver in almost four years, investors' holdings are near a record, siding with the analysts predicting a rally as central banks move to bolster growth.
Speculators cut bets on higher prices by 72 percent since the end of February, mirroring changes in their copper wagers, which turned bearish in May, U.S. Commodity Futures Trading Commission data show. Silver held in exchange-traded products climbed for three months and is now valued at $16.3 billion, according to data compiled by Bloomberg. Prices will average $33.02 an ounce in the fourth quarter, 18 percent more than now, the median of 13 analyst estimates compiled by Bloomberg show.
The Keys To Understanding the Collapse of the Status Quo:
Credibility and Expectations When expectations are raised to impossible heights based on the promise of exponential financialization, the credibility of the Status Quo is doomed.
By Charles Hugh Smith - OfTwoMinds.com
Data is important, but not all trends can be quantified. Longtime readers know that I value data and often use charts to explain the forces of transition/collapse. But there are profound dynamics that are not easily quantified, instances in which quantification may obscure our understanding.
Credibility and expectations are two such dynamics. Both credibility and expectations are very real forces, despite their status as inner states immune to direct measurement.
The Fed's inflation 'solution' If you think you haven't been paying high enough prices, you're in luck. Some Federal Reserve officials agree with you.
By Bill Fleckenstein - Money.MSN.com
Prominent articles in The Wall Street Journal and The New York Times on Tuesday discussed interviews given Monday by the head of the Federal Reserve Bank of Boston, Eric Rosengren, and they naturally goosed the market while also getting under my skin.
For one, the articles made it painfully obvious that Rosengren is a central planner at heart. If he had his way, he would unleash as much money as it took to force the economy to deliver the lower job and higher inflation rates he wants:
Currency's Days Seen Numbered Investors Prepare for Euro Collapse
By Martin Hesse - Spiegel.de
Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.
Otmar Issing is looks a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.
A New Marshall Plan Would Shake Things Up
BY JOE DUARTE - FinancialSense.com
If Central Banks Played Heavy Metal The Would Turn Their Money Amps To Eleven
The financial markets seem to be equally betting on whether the Federal Reserve and the European Central Bank (ECB) will decide to unleash the printing presses at any time in the near future and what the consequences of this actually happening or not may be for the future of the global economy.
It's really complex, but it's not complicated. In 2008, after several years of excessive speculation in real estate, fueled by unethical business practices in the subprime mortgage industry, the housing market in the U.S. and eventually the world collapsed. That's pretty normal market stuff. Eventually somebody is the last buyer at the end of a trend and the market collapses.
World shipping crisis threatens German dominance
as Greeks win long game Germany's shipping industry faces a wave of bankruptcies over coming months as funding dries up and deepening economic woes across the world cause a sharp contraction in container trade.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Over 100 German ship funds have already shut down as the long-simmering crisis in global container shipping finally comes to a head. A further 800 funds are threatened with insolvency, according to consultants TPW in Hamburg.
They are not alone. Britain's oldest shipowner, Stephenson Clark, dating back to 1730, went into liquidation last week, closing the final chapter of Britain's coal trade and the industrial revolution.
It cited "incredibly depressed" vessel rates. The firm over-invested in the boom four years ago, betting too much on the China syndrome.
The Dog That's Not Barking
BY DOUGLAS NOLAND - FinancialSense.com
The "go ahead, make my day," Draghi "will do everything to save the euro" rally saw Spanish and Italian stocks jump 10.6% and 9.5%, respectively, in six sessions. The S&P500 rose 2.0%, with the Goldman Sachs "Most Short" index surging 7.4% (in six sessions). Spain's two-year yields sank 160 bps in four sessions and Italy's fell 100 bps. Crude, gold andcommodities popped. Somewhat the dog that didn't bark, the euro closed today at 1.2252, up little since Draghi's comments and only about 2% above recent trading lows. Spain's 10-year yields ended the week at a problematic 6.85% and, at 5.88%, Italy's 10-year yields were only somewhat less discouraging.
China and Germany: a new special relationship? a special relationship between Germany and China is emerging
Hans Kundnani and Jonas Parello-Plesner - ECFC.org
The increase in trade between China and Germany during the last decade – and, in particular, in German exports to China – has exceeded all expectations. Germany is China's number-one trade partner in the EU and China is the top foreign investment destination for German companies.
Based on this emerging economic symbiosis between China and Germany, a "special relationship" is now developing. But is this trade-based relationship damaging wider European strategic interests in areas such as foreign policy, energy and raw materials, climate change and human rights?
China/Germany partnership? The Great Mart Putting a warming relationship in prophetic context
BY BRAD MacDONALD and RON FRASER - TheTrumpet.com
Do you believe in the predictive power of Bible prophecy?
Three years ago, Trumpet editor in chief Gerald Flurry forecasted the formation of a brief alliance between a German-led European Union and major Asian powers, based primarily on trade and commerce.
This past May, the European Council on Foreign Relations, a well-respected think tank, published a revelatory report titled "China and Germany: Why the Emerging Special Relationship Matters for Europe." It confirms the emergence of the relationship Mr. Flurry spoke of three years ago.
African nations chase away the almighty dollar Governments, looking to boost local currencies,
impose penalties for dollar use
By Patrick McGroarty
(MarketWatch) — African countries are trying to shoo the U.S. dollar away, even if it means threatening to throw people who use greenbacks in jail.
Starting next year, Angola will require oil and gas companies to pay tax revenue and local contracts in kwanza, its currency, rather than dollars. Mozambique wants companies to exchange half of their export earnings for meticais, hoping to pull more of the wealth in vast coal and natural-gas deposits into the domestic economy. And Ghana is seeking similar ways to reinforce "the primacy of the domestic currency," after the cedi plummeted more than 17% against the dollar in the first six months of this year.
A US sledgehammer to crack Standard Chartered To quote Joseph Heller's Catch-22: "Just because you're paranoid doesn't mean they aren't after you."
By Kamal Ahmed - Telegraph.co.uk
Peter Sands, the chief executive of Standard Chartered and until last week the High Priest of banking virtue, must be wondering what he's done in a previous life to deserve the attentions of Benjamin Lawsky.
Mr Lawsky, who describes himself as "strategically aggressive", is the head of the New York State Department of Financial Services, known as DFS in shorthand, the same name as a rather good UK sofa emporium.
Gary Shilling: US in Recession Now or Within 3 Months, Deleveraging Will Take 5-7 More Years
By Mike Shedlock - GlobalEconomicAnalysis.blogspot.com
In a Daily Ticker Interview with Henry Blodget, economist Gary Shilling makes the case the US is already in recession.
"We've had three consecutive months of declines in retail sales," says Shilling, president of A. Shilling & Co., an economic research and forecasting firm. "That's happened 29 times since they started collecting the data in 1947, and in 27 of the 29 we were either in a recession or within three months of it."
Bernanke's Dilemma:
How US Corporations Became Addicted To Endless QE
Submitted by Tyler Durden - ZeroHedge.com
While many argue that corporate profitability in the US knows no bounds as cost-cutting amid 'slow' growth will fill the gap, we offer this quite compellingly nerve-jangling chart of the increasing dependence of S&P non-financial operating profits and the weakness of the US Dollar. The negative correlation between macro-level EPS and the U.S. dollar is both theoretically and empirically clear. As Citi points out, profits earned abroad are reported in depreciating or appreciating terms, boosting or reducing profits; and as the negative correlation between the USD and global growth can result in 'double counting' of earnings influences - this leads to too much hope at 'turning points'.
Wall Street's Conundrum Isn't Bernanke's Problem
BY VEDRAN VUK - FinancialSense.com
With Mario Draghi and Ben Bernanke refusing to open the floodgates for yet more monetary stimulus last week, Wall Street is again disappointed. Expectedly, the market slid downward in response before the jobs report picked it back up. But was this really so unpredictable to warrant such a slide? No, not really. Nonetheless, Wall Street expected more stimulus as institutional investors are analyzing monetary policy from their perspective rather than the central bank's viewpoint - a big mistake.
The failure of supply-side tax cuts We're still waiting for the benefits to trickle down
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) — Some 30 years after the Republican Party was smitten by supply-side economics, the Grand Old Party remains faithful to the creed, even if history hasn't been kind to the idea that tax cuts and deregulation alone will lead to a wondrous new era of American prosperity.
Mitt Romney's economic platform is little changed from George W. Bush's or Ronald Reagan's. It's sparse on details, likely because it can be summed up in four powerful words: Government IS the problem. Like Reagan and Bush, Romney says he's positive that the American economy would thrive if we'd only liberate businesses (that is, "job creators") from pesky regulations and onerous taxes.
JP Morgan chief Jamie Dimon defends banks,
says London Whale has been 'harpooned' JP Morgan chief executive Jamie Dimon has said the London Whale responsible for a $5.8bn trading loss has been "harpooned", as he defended the role of big banks in society.
By Andrew Trotman - Telegraph.co.uk
In an interview with New York Magazine, he blasted the backlash against bankers, calling himself "an outspoken defender of the truth" and angrily reminding the journalist that America is a "free f----ing country".
Financial institutions bore the brunt of public anger following multi-million-pound bonuses for executives despite a global financial collapse and subsequent recession.
But Dimon, who has led the bank for seven years and was paid a record $49.9m in 2007, has insisted that people have forgotten that the good things banks - especially big banks - can do often filter down to consumers.
Jamie Dimaon Is Sorry,... Kinda 122 Minutes With Jamie Dimon The JPMorgan Chase CEO is really, really, really sorry.
Except when he's not.
By Jessica Pressler - NYMag.com
Even here, on his own turf, they are giving Jamie Dimon a hard time.
"Um, yeah, my question is kind of broad?" begins a gawky guy who identifies himself as a Tufts student interning in Client Solutions. "Earlier this summer we had the LIBOR scandal that was involved with a lot of the big banks and led to the resignation of the CEO from Barclays. More recently we had Sandy Weill saying the banks needed to be broken up. With the banks so big, how is it possible to monitor every aspect?"
Maybe not illegal, but he acted on privileged information the rest of us did not have access to, even if not technically 'insider trading'.
Career politicians are well PAID, in all respects.
Paul Ryan sold shares on same day
as private briefing of banking crisis Vice-presidential candidate attended 2008 meeting with Fed chairman in which officials outlined fears for financial crisis
By Dominic Rushe in New York - Guardian.co.uk
Paul Ryan, Mitt Romney's vice-presidential running mate, sold stock in US banks on the same day he attended a confidential meeting where top level officials disclosed the sector was heading for a deep crisis.
The congressman is facing questions about whether he profited from information gleaned from the meeting on 18 September 2008 when Federal Reserve chairman Ben Bernanke, then treasury secretary Hank Paulson and others outlined their fears for the banking sector.
....Until this year members of Congress were allowed to trade on price-sensitive information gathered at Washington meetings. Nor is Ryan alone in having done so. CBS's 60 Minutes criticised Democrat Nancy Pelosi for buying into Visa's initial public offering as the House discussed credit card legislation.
Paul Ryan Insider Trading Rumor Quickly Debunked
By BENJY SARLIN - TalkingPointsMemo.com
It had the makings of a scandal: Paul Ryan traded banking stocks during the financial crisis the same day as a meeting with top Treasury Department officials, a Virginia blog wrote Monday. But the rumor, which spread rapidly across the Internet, doesn't hold up to scrutiny.
The meeting in question took place on Sept. 18, 2008, between Federal Reserve Chairman Ben Bernanke, then-Treasury Secretary Hank Paulson and congressional leaders including Nancy Pelosi, John Boehner and Harry Reid. The Richmonder, a progressive Virginia blog, noted on Monday that Ryan'sfinancial disclosure form from 2008 showed that he sold stock in Citigroup and JP Morgan, who were in crisis, the same day and bought stock in Goldman Sachs, which proved to be stronger. The blog claimed that Ryan also attended the meeting. The implication, they stated, was that he was using information gleaned from the briefing for personal profit.
The Flawed Credit Card Debt Collection Process
By Tracy Bloom - Truthdig.com
Credit card companies are increasingly turning to the legal system in their rush to collect money that is owed to them. But, there now exists a very big problem in this litigious-happy practice—nearly all these lawsuits are flawed, at least, said a civil judge who presides over such cases in New York.
"I would say that roughly 90 percent of the credit card lawsuits are flawed and can't prove the person owes the debt," said Noach Dear, who sees about 100 such cases every day.
Get Ready for an Economic Data Deluge
By Dunstan Prial - FOXBusiness.com
Economic reports due next week will cover a spectrum of important sectors from housing to retail to consumer sentiment. Important inflation data will also be released.
The housing sector has been unable to bounce back from lows reached in the wake of the 2008 financial crisis. Too much speculative building leading up to the crisis has created bloated inventories. Add to that millions of homes forced empty by foreclosure and a huge swath of the U.S. economy has essentially been handcuffed for four years.
Currency Flows Reversing China To Colombia As Trade Slows
By Ye Xie and Andrea Wong - Bloomberg.com
Just three months after the biggest developing economies sold dollars to support their currencies, policy makers from Colombia to China are moving to weaken exchange rates and revive exports as the International Monetary Fund forecasts the slowest trade growth in three years.
Colombian Finance Minister Juan Carlos Echeverry urged the central bank on Aug. 3 to boost minimum dollar purchases from $20 million a day, saying the country needs "more ammunition" to drive down the peso in the global "currency war." The Philippines banned foreign funds from deposit accounts and unexpectedly cut interest rates in July as the peso hit a four- year high. In China, authorities lowered the yuan reference rate to the weakest since November, which according to Citigroup Inc. will create "headwinds" for other Asian currencies.
You Will Not Believe What Some People
Are Willing To Do For A Paycheck These Days
By Michael Snyder - TheEconomicCollapseBlog.com
It is absolutely amazing what some people will do to make a living in this economy. Desperate times call for desperate measures, and we have not seen this kind of desperation for jobs in America since the Great Depression of the 1930s. What some people are willing to put up with just to bring home a paycheck these days will totally shock you. For example, would you slaughter dogs all day long even though you are really a dog lover? Would you personally train your replacement from China even though you knew he was about to take your job? Would you trade sex for a job? There are people out there actually doing all these things and worse. Every night in America, millions upon millions of people roll around endlessly in their beds and stare at their ceilings for hours because they can't sleep. They are sick to their stomachs because their money is gone and nobody will hire them. They can't provide even the basics for their families and they feel worthless. Unemployment can be absolutely soul crushing and it can suck the life right out of you. Things were supposed to be better by now, but they aren't. The month after Barack Obama took office the unemployment rate broke the 8 percent barrier and it has stayed above it ever since. But the truth is that the "official" unemployment number greatly understates the real amount of suffering that is going on out there. In reality, the percentage of working age Americans that have jobs is lower today than when the last recession ended. There are millions upon millions of Americans that are desperate for some hope, and there is no hope on the horizon. In fact, things are going to be getting a whole lot worse for the U.S. economy.
Will the Crop Crisis Trigger Inflation?
BY BUD CONRAD - FinancialSense.com
Our news media have not given enough attention to the very serious heat problems of this summer's growing season for grains. The heat and drought have seriously damaged the corn crop during the early July period of tasseling. The price of corn at $8 per bushel is a new record high. Similarly, $9 per bushel of wheat and soybeans at $16 a bushel are a record high. Soybeans are in the middle of their crucial pod filling stages in August and are looking vulnerable. The decline in the quality of the corn crop over the growing season shows just how serious this year's drought has been.
The One Housing Solution Left: Mass Mortgage Refinancing
By JOSEPH E. STIGLITZ and MARK ZANDI - NYTimes.com
MORE than four million Americans have lost their homes since the housing bubble began bursting six years ago. An additional 3.5 million homeowners are in the foreclosure process or are so delinquent on payments that they will be soon. With 13.5 million homeowners underwater — they owe more than their home is now worth — the odds are high that many millions more will lose their homes.
Housing remains the biggest impediment to economic recovery, yet Washington seems paralyzed. While the Obama administration's housing policies have fallen short, Mitt Romney hasn't offered any meaningful new proposals to aid distressed or underwater homeowners.
Google to cut 4,000 Motorola Mobility jobs, shares rise
By Sayantani Ghosh and Alexei Oreskovic
(Reuters) - Google Inc will slash 20 percent of the workforce of Motorola Mobility in the Internet search giant's largest job cuts ever as it moves to make more smartphones and fewer simple mobiles.
The news sent Google's shares up nearly 3 percent but analysts said it was unclear if the cuts were enough to restore the fortunes of Motorola, whose last hit was the Razr flip-phone launched eight years ago.
Facebook's Drop Limits Goldman Sachs Gain As Lockup Ends
By Brian Womack - Bloomberg.com
Facebook Inc. (FB)'s stock plunge has robbed Goldman Sachs Group Inc. and Microsoft Corp. (MSFT) of much of the potential gain they could unlock as soon as this week, when a ban on sales of insiders' shares begins to lift.
While the end of the lockup has the potential to put additional pressure on the stock price, owners such as Goldman Sachs (GS), which now has a stake worth about $900 million, face a dilemma: whether to sell now and realize a smaller profit or sit tight and risk further losses.
How the Oil Boom Is Changing North Dakota It's filling a vital need—but highlighting some wicked greed.
By Joel Hilliker - theTrumpet.com
If there are two things America needs now, it's oil and jobs. North Dakota has both in spades.
But there's a problem here. And it contains an important spiritual lesson—with an inspiring happy ending.
North Dakota is experiencing the biggest oil rush America has seen in decades. It is at the vanguard of an energy renaissance that has emerged thanks to advancements in resource extraction technology. A geological formation called the Bakken, which lies under parts of Saskatchewan, Montana and North Dakota, holds billions of barrels of now-extractable oil. In North Dakota, an estimated 27 to 45 billion barrels are accessible with today's technology—out of total reserves of perhaps 900 billion barrels or more. Compare that to the Persian Gulf's 747 billion barrels of proven oil reserves. Some say this could be the world's largest oil discovery in more than a generation.
Bakken billionaire's oil optimism For oil driller Harold Hamm, Bakken boom
brings more billions and a chance to dabble in politics
By Steven Mufson, WashingtonPost.com
Lexington, Okla. — Harold Hamm sat in a corner of the Railhead Diner, having polished off a plate of meatloaf and savored a bite of the fried pie with chocolate filling.
Hamm, who grew up just across the tracks, has a lot to savor these days. As the youngest of a sharecropper's 13 children, Hamm spent his earliest years nearby picking cotton until the first snowfall or Christmas, whichever came first. Then he would scramble to catch up in school. Later, after the family moved to this small town, he delivered newspapers and played baseball in a lot that's still here. Since his home had no television, he would go across the street to watch with neighbors. His surviving sister, Fannie, still lives in a modest home here.
Monkeywrench in the elite's oil profit scheme? Salazar plan puts half of Alaska petroleum reserve
off-limits to drilling
By Juliet Eilperin, WashingtonPost.com
Interior Secretary Ken Salazar on Monday announced the first comprehensive plan to manage the National Petroleum Reserve in Alaska, allowing for new drilling on half of the nearly 23 million-acre reserve while putting the rest off-limits to oil and gas exploration.
The move — which leaves open the possibility of constructing a pipeline to transport oil and gas extracted from the Chukchi Sea onshore — drew praise from environmentalists but sharp criticism from oil and gas proponents who said it would restrict the industry's ability to tap the nation's hydrocarbon resources.
Iowa brokerage CEO indicted in $200-million fraud scheme
AP - LATimes.com
IOWA CITY, Iowa — The founder of a bankrupt Iowa-based brokerage accused was indicted by a federal grand jury Monday on 31 counts of making false statements to regulators in connection with a $200 million fraud scheme.
Peregrine Financial Group Inc. CEO Russ Wasendorf Sr. could face up to 155 years in prison if convicted on all counts, prosecutors said. His attorney didn't immediately return a phone message Monday, and the date for an arraignment, where Wasendorf will enter a plea, has not been set.
Heat warning in California
Flex alert issued for Tuesday as heat wave continues
By Abby Sewell - LATimes.com
With the state's heat wave expected to continue through the week, the California Independent System Operator has once again issued a flex alert, a call for customers to conserve power to avoid outages.
The alert will be in effect Tuesday between 11 a.m. and 6 p.m. During that time, customers are asked to keep thermostats at 78 degrees or higher, to turn off air conditioning when not at home, to turn off unnecessary lights and appliances, and to restrict the use of major appliances to the morning and late evening.
Status of America's Nuclear Facilities - repair, close, or build?
Crystal River's Controversial Repairs
Central to Duke Energy Hearings
By Scott Judy - Southeast.Construction.com
As hearings into Duke Energy's surprise ousting of CEO William D. "Bill" Johnson wrapped up July 20, a pending repair project at the troubled Crystal River nuclear powerplant remained a leading suspect for the boardroom shake-up. However, it remained unclear whether the North Carolina Utilities Commission would examine the matter further.
In his testimony on July 19, Johnson alleged that Duke had tried to scuttle the merger with Progress Energy, of which he had been chairman and CEO. As part of the deal, Johnson, 58, was named CEO but was ousted less than 24 hours after the merger closed on July 2.
Repair costs rise at Crystal River nuclear plant
By Ivan Penn, Times Staff Writer
The cost to fix the broken Crystal River nuclear plant appears to be on the rise.
The previous top estimate of $1.3 billion is likely too low, Duke Energy CEO Jim Rogers confirmed in an interview Thursday.
The utility has not decided whether to repair or permanently shut down the plant. An independent technical evaluation commissioned on the facility by Duke's board is expected to be complete in about a month, Rogers said.
San Onofre nuclear plant costs top $75 million
for repairs and restart
By Ed Joyce - SCPR.org
Anti-nuclear activists say ratepayers should not have to pay repair costs for the damaged San Onofre Nuclear Generating Station.
The reaction comes after the plant operator shared cost estimates to fix the facility Tuesday.
The nuclear plant has been offline since January 31, after a leak in a steam generator tube sent radioactive vapor into the atmosphere.
State could cut purse strings on ailing nuke plant parts
BY PAUL SISSON - NCTimes.com
It turns out, there is a kind of lemon law for power plants, and Southern California Edison may be about to get squeezed.
State regulators say they plan to study whether the company should lose its ability to recoup the full $680 million cost for four replacement steam generators, which were installed in recent years at San Onofre Nuclear Generating Station and quickly developed problems that have shut down the plant since January.
Could economics doom ailing Calif. nuke plant?
AP - DailyRepublic.com
LOS ANGELES — The future of the troubled San Onofre nuclear power plant could balance on an inescapable question: Is it worth the money to fix it?
Engineers face a daunting task finding a solution for problems that knocked the seaside plant offline last winter. And even if they come up with a plan that fully addresses safety and operational issues, will it all make sense on a balance sheet?
Obama meat aid plan lifts prices but not farm sentiment
By K.T. Arasu and Theopolis Waters
(Reuters) - President Barack Obama made few new fans among ailing hog farmers and cattle ranchers in the United States on Monday with his plan to boost their incomes by buying $170 million worth of meat -- equivalent to about 10 hours' worth of the nation's output last week.
Obama unveiled the plan on a campaign trip to farm state Iowa on Monday as record-high feed costs force cattle ranchers and hog farmers to cull their herds.
The Difference Between Obama And Ryan's Medicare Cuts
SAHIL KAPUR - TlakingPointsMemo.com
Lost in the back and forth between the Obama and Romney campaigns over who's the real Medicare cutter is a critical difference between visions: President Obama's plan is to make the program solvent by reducing payments to health care providers, while Rep. Paul Ryan achieves his savings by transforming Medicare into a voucher-like system.
"There's only one president that I know of in history that robbed Medicare — $716 billion to pay for a new risky program of his own that we call Obamacare," Romney said in a CBS interview Sunday evening.
The True Cost of Health Care Reform
Interview: James J Puplava CFP with Paul Ryan and Michael Franc
• The True Cost of Health Care Reform
• Obamacare Timeline
• The Medical Nuclear Option: What Comes Next
With Both Presidential Candidates Full Of Hot Air,
El-Erian Warns Of Populist Anger Returning
Submitted by Tyler Durden - ZeroHedge.com
As the 'new' normal limps on, PIMCO's Mohamed El-Erian focuses his attention on the political dysfunction that roils the 'new new' normal in an excellent op-ed in Foreign Policy today. The economic and financial system risks breakages that the political system will be increasingly incapable of mending rapidly enough," he opines as he fears sluggishness in economic growth, unacceptably high youth unemployment and long-term joblessness, redoubled debt and deficit concerns, and worsening inequalities between rich and poor leading the US down a path towards Europe's disruption. Sadly, neither Obama nor Romney has yet offered a meaningful, forward-looking economic reform program to address problems such as a malfunctioning labor market, unsustainable public finances, a broken credit system, inadequate infrastructure, and a lagging education system. The warning bells are ringing, and they are ringing loudly. We've already allowed bad economics to lead to bad politics. Now, it's high time to put a stop to the cycle where bad politics undermines an already fragile economy.
Two Dark Money Groups Outspending All Super PACs Combined
by Kim Barker - ProPublica.org
Two conservative nonprofits, Crossroads GPS and Americans for Prosperity, have poured almost $60 million into TV ads to influence the presidential race so far, outgunning all super PACs put together, new spending estimates show.
These nonprofits, also known as 501(c)(4)s or c4s for their section of the tax code, don't have to disclose their donors to the public.
New DARPA Weapon: The Slowest Robot Ever
By Will Oremus - Slate.com
Earlier this year, DARPA gave us Cheetah, a four-legged robot that broke the robot land speed record by hitting 18 mph on a treadmill. Now comes a DARPA-funded machine that proudly embraces the opposite end of the robot swiftness spectrum.
Meet Meshworm, an earthworm-like robot that contracts segments of its body one after the next to inch along the ground at up to 5 millimeters per second, or about 0.01 mph. That is, literally, a snail's pace.
Soft autonomous robot inches along like an earthworm Flexible design enables body-morphing capability.
Jennifer Chu, MIT News Office
Earthworms creep along the ground by alternately squeezing and stretching muscles along the length of their bodies, inching forward with each wave of contractions. Snails and sea cucumbers also use this mechanism, called peristalsis, to get around, and our own gastrointestinal tracts operate by a similar action, squeezing muscles along the esophagus to push food to the stomach.
Now researchers at MIT, Harvard University and Seoul National University have engineered a soft autonomous robot that moves via peristalsis, crawling across surfaces by contracting segments of its body, much like an earthworm. The robot, made almost entirely of soft materials, is remarkably resilient: Even when stepped upon or bludgeoned with a hammer, the robot is able to inch away, unscathed.
The Civil War of 2016 U.S. military officers are told to plan to fight Americans
By THE WASHINGTON TIMES-The Washington Times
Imagine Tea Party extremists seizing control of a South Carolina town and the Army being sent in to crush the rebellion. This farcical vision is now part of the discussion in professional military circles.
At issue is an article in the respected Small Wars Journal titled "Full Spectrum Operations in the Homeland: A 'Vision' of the Future." It was written by retired Army Col. Kevin Benson of the Army's University ofForeign Military and Cultural Studies at Fort Leavenworth, Kan., andJennifer Weber, a Civil War expert at the University of Kansas. It posits an "extremist militia motivated by the goals of the 'tea party' movement" seizing control of Darlington, S.C., in 2016, "occupying City Hall, disbanding the city council and placing the mayor under house arrest." The rebels set up checkpoints on Interstate 95 and Interstate 20 looking for illegal aliens. It's a cartoonish and needlessly provocative scenario.
U.S. Super Soldiers Of The Future Will Be Genetically Modified Transhumans Capable Of Superhuman Feats
By Michael Snyder - EndOfTheAmericanDream.com
The future of war is going to look really, really weird. The "super soldier" research that DARPA (the Defense Advanced Research Projects Agency) is working on right now is unlike anything we have ever seen before. If DARPA is successful, and if the American people don't object, the soldiers of the future will be genetically modified transhumans capable of superhuman feats. Do you want a soldier that can run faster than Usain Bolt? DARPA is working on that. Do you want a soldier that won't need food or sleep for days? DARPA is working on that? Do you want a soldier that can regrow lost limbs? DARPA is working on that. Do you want a soldier that can outlift Olympic weightlifters and that can communicate telepathically? DARPA is working on that. Americans flock to movies about superheroes and mutants, and soon they may actually have real life "superheroes" and "mutants" fighting their wars for them. But at what cost?
The 'German Shepherd' Shows His Teeth Silencing dissenting priests, clamping down on errant nuns—Pope Benedict XVI is pointing the way forward for the Roman Catholic Church.
BY JOEL HILLIKER - TheTrumpet.com
When he became pope in 2005, the German-born Joseph Ratzinger was expected by liberals and conservatives alike to be a tough authoritarian. After all, he was the church's chief doctrinal enforcer, head of the organization once known as the Inquisition. He was the "Panzerkardinal"—"God's Rottweiler."
Then came seven years of what many perceived as a relatively quiet papacy. Now, though, perceptions are reverting back. In increasingly obvious ways, Benedict's Rome is snuffing out dissent, stamping out liberalism and enforcing its brand of conservative Catholicism. Headlines are becoming common about the reemergence of the "real Ratzinger" and the "Return of the Rottweiler."
In Putin's Russia, little separation between church and state
By Marc Bennetts - Special to The Washington Times
MOSCOW — The Russian Orthodox Church is enjoying its newfound prestige with the Russian government.
The head of the church, Patriarch Kirill, was granted residence in the Kremlin, the elaborate historic fortress in Moscow and seat of theRussian government, late last year, and he openly supported Vladimir Putin, who won a third term as president in March.
But the church's closeness to the government has also made it a target of criticism and protest.
Syria: western diplomats lose faith
in SNC to unite opposition groups US, UK and France seek to build more direct links with disparate rebels amid fears that Islamists are getting Gulf donations
By Julian Borger - Guardian.co.uk
The US, Britain and France are scrambling to retain their influence with Syrian opposition groups amid fears that most support from the Gulf states has been diverted towards extremist Islamic groups.
Rising concern that an increasingly sectarian civil war could spread across the region, combined with reports of brutality by some opposition groups, and evidence that the best-organised and best-funded rebel groups are disproportionately Salafist (militant Sunni fundamentalists), has triggered an urgent policy change in western capitals.
U.S. banks told to make plans for preventing collapse
By Rick Rothacker, Reuters - ChicagoTribune.com
(Reuters) - U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.
The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?
By Michael Snyder - TheEconomicCollapseBlog.com
Something really strange appears to be happening. All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse. Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us. Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either. Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" for the last two years. By itself, that wouldn't be that big of a deal. But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge.
HOAs foreclose on big banks
By Paul Owers, Sun Sentinel
South Florida homeowner associations are foreclosing on some of the nation's largest banks, accusing the lenders of failing to pay thousands of dollars in maintenance fees on repossessed properties.
The foreclosure filings are a growing trend as associations become more aggressive in going after delinquent fees that have crippled HOA budgets during the housing bust.
Banks owe a portion of the past-due maintenance fees and the full amount from the date they take title to the property, attorneys said. If the lenders fall behind, they're subject to foreclosure just as an individual owner would be.
Treasury's Secretive $2.4 Trillion Mutual Fund Guarantee
By: John Carney - CNBC.com
Details about a secretive government program to bail out money-market mutual funds are finally coming to light.
Acting without any explicit Congressional authority, the U.S. Treasury guaranteed in excess of $2.4 trillion of money market funds after the giant Reserve Primary Fund "broke the buck" following the bankruptcy of Lehman Brothers. The program, which ended on Sept. 18, 2009, seems to have successfully prevented a panicked run by money-market fund investors.
Consumer bureau seeks sleuths for bad bankers
By Jim McElhatton-The Washington Times
The federal government's newly created Consumer Financial Protection Bureau is recruiting investigators in ads that suggest the agency plans to go undercover to pursue cases against banks, credit card companies and other financial companies.
"As needed," one recent recruitment ad stated to potential investigators, "establish and conduct surveillance activity to develop both intelligence and evidence to further investigations. Utilize surveillance activities to identify subjects, their activities and their associates, corroborate source information and collect evidence."
Standard Chartered Case Casts a Chill Over Banks
By JESSICA SILVER-GREENBERG - NYTimes.com
Money laundering accusations leveled against a British bank by New York's top banking regulator are causing global banks to worry that their New York operations could make them public targets for processing transactions already deemed legal by federal regulators, according to federal authorities with knowledge of the concerns.
Benjamin M. Lawsky, who leads the New York Department of Financial Services, upended the regulatory landscape on Monday by accusingStandard Chartered of scheming with the Iranian government for nearly a decade and hiding from regulators $250 billion in transactions through its New York branch. The bank, for its part, has said it "strongly rejects the position and portrayal of facts" by Mr. Lawsky's department.
What Goldman Sachs Did and the Justice Department Didn't
By Jonathan Weil - Bloomberg.com
The Justice Department won't be pursuing criminal charges against Goldman Sachs or its employees over its "big short" on the housing market several years ago. Fortunately, the details of Goldman's appalling behavior and role in the financial crisis will live on forever in the public record.
The department's investigation began last year after Senators Carl Levin of Michigan and Tom Coburn of Oklahoma, a Democrat and a Republican, released the findings of a two-year inquiryby the Senate Permanent Subcommittee on Investigations into Goldman's sales and trading practices.
Goldman and other big banks are not out of the woods The lack of accountability during the financial crisis, which was a tear in the faith in governmental and banking institutions, is turning into a giant rip that may never be repaired.
By Eleanor Bloxham - Fortune.com
FORTUNE -- Goldman Sachs has come into a run of luck -- or so it seems.
The SEC has dropped its investigation into the bank's disclosures related to the sale of subprime mortgages. And the DOJ has dropped its criminal probe into allegations stemming from a 635-page Congressional report that described how Goldman profited by betting against clients and appeared to have misled customers.
Did We Just Find Someone to Take On the Banks?
By Jonathan Weil - Bloomberg.com
To see how the federal government has pursued money-laundering cases against big banks over their dealings with Iran and other countries under U.S. trade sanctions, consider what happened when Barclays Plc (BARC) and the Justice Department were required to file reports describing the U.K. bank's cooperation under a settlement in 2010.
The deadline came and went. Barclays and the Justice Department failed to comply, infuriating U.S. District Judge Emmet Sullivan of Washington, who had ordered that the reports be filed. "I am amazed that with all the legal talent before the court that no one opened the order to read it," he said. A Justice Department attorney, Kevin Gerrity, told the judge he couldn't explain the lapse. Before approving Barclays's deferred-prosecution agreement, Sullivan called it a "sweetheart deal." Barclays paid $298 million, its core business was unscathed, and no executives were charged.
11 Things That Can Happen When You Allow Your Country
To Become Enslaved To The Bankers
By Michael Snyder - TheEconomicCollapseBlog.com
Why are Greece, Spain, Italy, Portugal and so many other countries experiencing depression-like conditions right now? It is because they have too much debt. Why do they have too much debt? It is because they allowed themselves to become enslaved to the bankers. Borrowing money from the bankers can allow a nation to have a higher standard of living in the short-term, but it always results in a lower standard of living in the long-term. Why is that? It is because you always have to pay back more money than you borrowed. And when you get to the point of having a debt to GDP ratio in excess of 100%, you are basically drowning in debt. Huge amounts of money that could be going to providing essential services and stimulating your economy are now going to service your horrific debt. Today, citizens in Greece, Spain, Portugal and Italy are experiencing a standard of living far below what they should be because the bankers have trapped them in endless debt spirals. Sadly, the vast majority of the people living in those countries have absolutely no idea what is at the root cause of their problems.
I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back. Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.
There are two problems with this statement. The first is factual. The second is ideological.
First, the facts. GM has not come roaring back. In fact, when GM relaunched with its November 2010 initial public offering -- after a government-shepherded bankruptcy process that saw the government destroy the pension benefits of non-union members at Delphi, screw creditors including outside union pension investment groups, and reward the auto unions that bankrupted GM in the first place – the stock sold for $33 per share. Now, the stock is trading at just above $20 per share. The American taxpayer is on the hook for some $35 billion. And there has been significant turmoil at the executive levels, with top marketing folks and others finding themselves on the golden-parachuted breadlines.
Fight The Fiat Papering over U.S. debts and trade imbalances
will take more bills than we can print.
By LEWIS E. LEHRMAN - The American Spectator.org THE CONSEQUENCES OF DISORDER
The Economic Crisis We Endure Today is only the latest chapter in the century-long struggle to restore financial order in world markets -- a struggle whose outcome is inextricably bound up with U.S. prosperity and the promise of the American way of life.
As we think through the consequences of financial disorder, what come to mind are the economic heresies of fascism and bolshevism, and the catastrophic world wars of the 20th century. These historical episodes compel us to remember that floating exchange rates and competitive currency wars became the occasion for violent social disorder and revolutionary civil strife in the first half of the 20th century. They remind us that natural resource rivalry, monetary depreciation, mercantilism, and war clouds have appeared together from time immemorial.
Five years on,
the Great Recession is turning into a life sentence Five years into the Long Slump
it almost seems as if we are back to square one.
By Ambrose Evans-Pritchard - Telegraph.co.uk
China is sufficiently alarmed by the flint hardness of its "soft-landing" to talk up trillions of fresh stimulus. The European Central Bank is preparing to print "whatever it takes" to save Spain and Italy. Markets are pricing in an 80pc chance of yet more printing by the US Federal Reserve in September or soon after.
There is no doubt that the three superpowers acting in concert can launch a mini-cycle of growth early next year - assuming they deliver on their rhetoric - but the twin headwinds of debt-leveraging and excess manufacturing plant across the globe cannot easily be conjured away.
Tensions in European Credit Markets Ease But Crisis Is Far from Over
BY CHRIS PUPLAVA - FinancialSense.com
Credit markets across the globe and particularly in Europe have improved over the last few weeks after ECB president Mario Draghi said the ECB would do "whatever it takes" to ease tensions in Europe. So far all we have are promises from Draghi and we have yet to see any concrete action but promises alone have been enough to bring down financial stress. That said, the Euro crisis is far from over as there are hundreds of billions of dollars of various governments in the Euro Zone that mature over the coming year and overall tensions remain elevated.
King Says Euro-Area's Debt Crisis Has 'No Obvious End In Sight'
By Fergal O'Brien - Bloomberg.com
Bank of England Governor Mervyn King said the U.K. must press on with reforms to the banking industry and repeated his gloomy outlook for the euro-area debt crisis, which is impeding Britain's economy.
"If the rest of the world were growing normally, the rebalancing and recovery of our economy would be much easier," King wrote in an article in the Mail on Sunday newspaper. "But it isn't. Even the rapidly expanding emerging-market economies are slowing, and the problems of the euro area continue with no obvious end in sight."
Portuguese head breaks ranks, urges ECB bond-buying
BY VALENTINA POP - EUObserver.com
BRUSSELS - Portugal's President Anibal Cavaco Silva has broken the government's tacit pro-German line and urged the European Central Bank (ECB) to start buying bonds from troubled eurozone countries.
"Why not have the ECB start applying now to public debt securities from Portugal and Ireland the orientation announced by its president," Cavaco Silva said in a message posted on his Facebook page on Thursday (9 August).
Merkel Returns To Crisis
As Leaders Squabble Over Bond Purchases
By Patrick Donahue - Bloomberg.com
German Chancellor Angela Merkel returns to the front line of the European debt crisis this week as the bloc's leaders squabble over measures including bond purchases to relieve concerns the single currency may fragment.
Merkel ends her summer vacation and travels to Canada Aug. 15-16 for talks with Prime Minister Stephen Harper as a spiraling euro crisis threatens to constrain the global economy. With the region's leaders awaiting a German high court decision on bailout funding next month, they're struggling to smooth divisions over a European Central Bank plan to buy the bonds of indebted nations.
Grilli Says Italy Doesn't Need Bailout Funds,
Repubblica Reports
By Elisa Martinuzzi - Bloomberg.com
Italian Finance Minister Vittorio Grilli said the country doesn't need to tap Europe's bailout funds, la Repubblica reported, citing an interview.
"The European Central Bank's toolbox, once operative, will substantially reduce tension on bond spreads," Grilli was cited as saying.
Grilli said he won't introduce more measures to reduce the nominal deficit this year as cuts would further weaken the economy, according to the newspaper.
Georgia to EU: Putin is more 'dangerous' than you think
BY ANDREW RETTMAN - EUObserver.com
BRUSSELS - Four years after a war which shocked Europe, Georgia's EU ambassador has said that Russia is becoming "more dangerous."
The Georgian envoy, Salome Samadashvili, spoke to EUobserver on Thursday (9 August), after Russian President Vladimir Putin endorsed an inflammatory film about the conflict.
The YouTube video, entitled Lost Day, says Putin phoned the then Russian president, Dmitry Medvedev, from China on 8 August 2008 to tell him to invade Georgia.
G20 plans response to rising food prices
By Javier Blas - FT.com
G20 countries are to step in to try and co-ordinate a response to surging food prices, after the worst US drought in half a century devastated crops in the world's largest agricultural exporter.
The conversations behind closed doors among senior G20 and UN agriculture officials about calling a session of a new emergency forum come after the cost of corn, or maize, surged to an all-time high, surpassing the level seen during the 2007-08 food crisis.
The US government on Friday stoked the fears of a price surge, saying the drought had forced the country's farmers to abandon cornfields covering a larger area than Belgium and Luxembourg combined. The Department of Agriculture slashed its forecast for the crop and predicted record prices over the next year.
How 'Everyday Low Prices' Are Costing Americans Their Jobs
By Adam J. Wiederman, The Motley Fool
As consumers, we welcome Walmart's (WMT) low prices.
But here's the thing about these low prices -- they're doing the U.S. more harm than good.
A new research report has found that low prices have actually caused unemployment to rise, and dealt a massive blow to the manufacturing sector.
Look no further than the 7 million manufacturing jobs the U.S. lost from 1980 to 2011, according to a recent research report from Demos. The report acknowledges this happened because of "a variety of complex factors." But Walmart had a bigger hand in this than most of us realize.
13-year-old hot dog vendor's business in jeopardy
after family enters Holland homeless shelter
By Garret Ellison | MLive.com
HOLLAND, MI — It's been a tough summer for Nathan Duszynski and his parents, Lynette and Douglas Johnson.
13-year-old Duszynski, who has become something of a local celebrity after his attempt to start a hot dog stand business was stymied by Holland City Hall, has checked into the Holland Rescue Mission with his mother for an indefinite stay.
"We don't have the money to move out," said Lynette Johnson. "It's embarrassing, but it's the truth."
The richest Indian tribe in America:
Casino profits pay $1MILLION a year to each member
By DAILY MAIL REPORTER
America's richest Indian tribe has 99.2 per cent unemployment -- and it's all voluntary, tribal leaders boast.
There's little need for any member of the Shakopee Mdewakanton Tribe to work. Each adult in the 460-person American Indian nation receives more than $1million a year - for doing nothing.
The payouts are the windfall from lucrative casinos and resorts that the tribe runs on its reservation in Scott County - about 45 minutes southwest of Minneapolis-St Paul.
Alaska Governor Asks Salazar
To Expedite Point Thomson Decision
By Dan Murtaugh - Bloomberg.com
Alaska Governor Sean Parnell asked U.S. Interior Secretary Ken Salazar to help expedite an Army Corps of Engineers decision on permits to develop the state's Point Thomson oil and gas field after it was delayed.
The decision was delayed to as late as December from September, Parnell said in an Aug. 11letter to Salazar, which was e-mailed yesterday, Sharon Leighow, an Anchorage-based spokeswoman for the governor, said in an e-mailed statement.
Border Agents Accused in Smuggling Ring Convicted
AP - ABC News
Two former Border Patrol agents were found guilty Friday of smuggling hundreds of people into the U.S. in Border Patrol vehicles.
Raul and Fidel Villarreal were convicted of charges that they brought illegal immigrants into the U.S. for money and received bribes by public officials, and counts of conspiracy to launder money. Prosecutors said Raul Villarreal started a ring that smuggled in Mexicans and Brazilians and made Fidel Villarreal, his older brother and a fellow agent, one of his first recruits.
US navy destroyer USS Porter
damaged in collision in Strait of Hormuz Oil tanker leaves a gaping hole in guided-missile destroyer late at night, but no injuries are reported on either vessel
AP in Manama - Guardian.co.uk
A US navy guided-missile destroyer was left with a gaping hole on one side after it collided with an oil tanker early Sunday just outside the strategic Strait of Hormuz.
The collision left a breach about 10 feet by 10 feet (three by three meters) in the starboard side of USS Porter. No one was injured on either vessel, the navy said in a statement.
RYAN SPEECH: 'IF YOU HAVE A SMALL BUSINESS,
YOU DID BUILD THAT'
Breitbart News
As prepared for delivery:
Mitt Romney is a leader with the skills, the background and the character that our country needs at a crucial time in its history. Following four years of failed leadership, the hopes of our country, which have inspired the world, are growing dim; and they need someone to revive them. Governor Romney is the man for this moment; and he and I share one commitment: we will restore the dreams and greatness of this country.
Ryan Pick Sharpens Romney Duel With Obama Over Budget
By Julie Hirschfeld Davis - Bloomberg.com
Mitt Romney moved a partisan split over budget cuts and government's size front and center in the presidential race by selecting Paul Ryan as his running mate, choosing a lawmaker seen by Republicans as a policy visionary and by Democrats as a fiscal extremist.
Along with energizing his base, Romney's vice presidential decision shifts a campaign he has sought to frame as a referendum on President Barack Obama's economic record into a contest between two radically different visions of government's role. The former Massachusetts governor's pairing with Ryan, the fresh-faced Wisconsin congressman who is the architect of Republican congressional budget plans, sharpens the ticket's contrast with Obama and promises a lively debate on whether and how to curb spending and overhaul U.S. entitlements, particularly Medicare.
The Next Election: High Stake Outcomes Based on Non-issues.
Paul Craig Roberts - PaulCraigRoberts.com
The election of the next puppet president of the "world's only superpower" is about two and one-half months off, and what are the campaign issues? There aren't any worthy of the name.
Romney won't release his tax returns, despite the fact that release is a customary and expected act. Either the non-release is a strategy to suck in Democrats to make the election issue allegations that Romney is another mega-rich guy who doesn't pay taxes, only to have the issue collapse with a late release that shows enormous taxes paid, or Romney's tax returns, as a candidate who advocates lower taxes for the rich, don't bear scrutiny.
THE BREITBART BIO: MEET PAUL RYAN Tea Party Hero; Washington Wonk
By Tony Lee - Breitbart.com
In an age in which 24-hour cable news, blogs, Twitter, Facebook, and talk radio have made the news cycle both incessant and insatiable, Paul Ryan's life -- and his family's -- will never be the same now that Mitt Romney has chosen him to be his running mate.
The white-hot spotlight -- and its glare -- will be on him and his past, but Ryan seems grounded and steady enough to withstand the coming storm, mainly because of the two people who have influenced him the most -- his late father and the late Jack Kemp. He is as focused on his physical well-being as he is about the country's fiscal health because of the influences of his late dad and Kemp, respectively.
TSA officers allege racial profiling
in security lines at Boston airport Monitors are meant to watch for suspicious passengers, but agents at Logan airport say co-workers unfairly target minorities
By Matt Williams in New York - Guardian.co.uk
An initiative to flag potential terrorist threats at an Boston airport has led to to widespread racial profiling of passengers, it was reported Sunday.
A report by the New York Times found that more than 30 federal officers involved in the "behaviour detection" programme at Logan International Airport said that the operation targets black and Hispanic people as well as those of a Middle Eastern appearance.
Obamacare could make insurance unaffordable Ambiguity in Health Law
Could Make Family Coverage Too Costly for Many
By ROBERT PEAR - NYTimes.com
WASHINGTON — The new health care law is known as theAffordable Care Act. But Democrats in Congress and advocates for low-income people say coverage may be unaffordable for millions of Americans because of a cramped reading of the law by the administration and by the Internal Revenue Service in particular.
Under rules proposed by the service, some working-class families would be unable to afford family coverage offered by their employers, and yet they would not qualify for subsidies provided by the law.
How big is Social Security's funding shortfall?
By Stephen Ohlemacher, AP - Yahoo Finance
WASHINGTON (AP) -- Social Security's long-term funding shortfall is big by any measure. How big? That depends on how you look at it.
Over the next 75 years, after Social Security drains its trust funds, the massive program is scheduled to pay out $134 trillion more in benefits than it will collect in tax revenue, according to agency data.
That's an immense number that could use further explanation. Three ways to look at $134 trillion spread out over 75 years:
Will Speculators Rescue Housing?
BY SY HARDING - FinancialSense.com
After the housing bubble burst there was sympathy for first-time home-buyers who had been enticed in by the easy loans and rising home prices and wound up in trouble.
But investors in single family homes came to be castigated as 'flippers', 'suckers', and worse. They had played a significant role in creating the bubble, signing contracts, often on multiple homes, making virtually no down payments, not intending to ever live in or even rent out the homes, but to simply flip them for a quick profit. Builders could hardly keep up with demand for a while, but wound up with wastelands of partially completed developments and condo projects, especially in the sun-belt states.
Food alert! Ready Pac Apples Pulled From Shelves For Listeria Risk
By Anna Edney - Bloomberg.com
Ready Pac Foods Inc. is recalling apples shipped to 36 U.S. states for restaurants owned byMcDonald's Corp. (MCD) and stores including Wegmans Food Markets Inc. because of potential contamination from the bacterium listeria.
Ready Pac's Missa Bay unit voluntarily recalled 293,488 cases and 296,224 individual packs of fruit, vegetable and sandwich products containing the apples, according to a statement today from the closely held company. No illnesses have been reported, the Irwindale, California-based company said.
Oil companies desperately seek water amid Kansas drought
By Blake Ellis @CNNMoney
NEW YORK (CNNMoney) -- Oil companies drilling in the drought-ridden fields of southern Kansas are taking desperate measures to get the water they need to tap into the state's oil reserves.
Huge amounts of water are required to extract oil, especially when companies use hydraulic fracturing, or fracking, which requires millions of gallons of water to crack the shale rock and bring oil to the surface. But now that the entire state is in emergency drought status, with only 1.19 inches of rainfall last month -- the 10th driest July on record -- unprecedented water shortages are making it difficult for drillers to get the water they need.
U.S. gas prices spike; refinery problems cited
By Jonathan Fahey - AP - WashingtonTimes.com
NEW YORK (AP) — A surprise surge in gasoline prices is taking some of the fun out of summer.
The national average for a gallon of gas at the pump has climbed to $3.67, a rise of 34 cents since July 1. An increase in crude oil prices and problems with refineries and pipelines in the West Coast and Midwest, including a fire in California, are mostly to blame.
Research Shows that Injection Wells may Cause Earthquakes
By Tim Green - OilPrice.com
Most earthquakes in the Barnett Shale region of North Texas occur within a few miles of one or more injection wells used to dispose of waste such as hydrofracking fluids, according to new research.
"You can't prove that any one earthquake was caused by an injection well," says Cliff Frohlich, senior research scientist at the Institute for Geophysics at the University of Texas at Austin. "But it's obvious that wells are enhancing the probability that earthquakes will occur."
How does it go?... No fool, like an old fool. George Soros celebrates 82nd birthday
with engagement to Tamiko Bolton 40-year-old Bolton and 82-year-old billionaire investor met in 2008 and announced planned wedding at Hamptons party
By Reuters - Guardian.co.uk
Billionaire investor George Soroshad a lot to celebrate on Saturday evening: his 82nd birthday and the engagement to his much younger girlfriend Tamiko Bolton.
Soros and Bolton, who met in the spring of 2008, formally announced their engagement at a party at Soros' summer home in Southampton, New York, attended by a small group of friends and relatives, according to a person familiar with the trader.
OBAMA ADMINISTRATION PAVES THE WAY FOR SHARIA LAW The most terrifying danger Americans face from a second Barack Obama term isn't the economy, which is scary enough.
by WILLIAM BIGELOW - Breitbart.com
The most harrowing prospect is the Obama Administration's passivity in the face of attempts to introduce aspects of sharia law into our legal system. Now there is strong and open evidence of the Obama administration collaborating with Islamist activists to ensure the path toward sharia law is accelerated.
Saudi Arabia plans new city for women workers only Businesswomen behind 5,000-job scheme designed to give women greater independence while maintaining segregation
By Caroline Davies - Guardian.co.uk
A women-only industrial city dedicated to female workers is to be constructed in Saudi Arabia to provide a working environment that is in line with the kingdom's strict customs.
The city, to be built in the Eastern Province city of Hofuf, is set to be the first of several planned for the Gulf kingdom. The aim is to allow more women to work and achieve greater financial independence, but to maintain the gender segregation, according to reports.
Gauss virus: Stuxnet-like cyberweapon hits Middle East banks Virus comes from the same 'factory' as Stuxnet and can wait to unleash attack till it reaches the right target, Kaspersky reports
Reuters in Boston - The Guardian
A new cyber surveillance virus has been found in the Middle East that can spy on banking transactions and steal login and passwords, according Kaspersky Lab, a leading computer security firm.
Dubbed Gauss, the virus may also be capable of attacking critical infrastructure and was very likely built in the same laboratories as Stuxnet, the computer worm widely believed to have been used by the US and Israel to attack Iran's nuclear programme, Kaspersky Lab said on Thursday.
Islamist takeover complete: Morsi Fires Top Defense Brass
Muslim Brotherhood consolidating power: Defense Minister and Chief of Staff sacked, military shaved of extra powers.
By Gil Ronen - Israel national News
Egyptian president Mohamed Morsi has sacked the entire leadership ofthe country's defense establishment.
Among the officials and officers fired are Defense Minister Mohamed Hussein Tantawi, and Chief of Staff Sami Anan.
Morsi appointed Abdul-Fatah al-Sessi as Defense Minister and Lieutenant-General Sidki Sayed Ahmed as Army Chief of Staff. A judge named Mahmoud Mekki was appointed vice president. Morsi also ordered theretirement of the commanders of the navy, air defense and air force. The retired navy commander, Lieutenant-General Mohan Mameesh, was named as chairman of the Suez Canal.
Gold Bulls Strengthen On Outlook For Additional Stimulus
By Nicholas Larkin - Bloomberg.com
Gold traders are the most bullish in five weeks as investors expanded their bullion holdings near a record on mounting speculation that central banks will have to do more to bolster economic growth.
Fifteen of 30 analysts surveyed by Bloomberg said they expect prices to rise next week and eight were bearish. A further seven were neutral, making the proportion of bulls the highest since July 6. Investors bought about $850 million of gold through exchange-traded products this month, taking the total of 2,411.7 metric tons to within 0.1 percent of the all- time high set July 5, data compiled by Bloomberg show.
A High Frequency Attack on Gold
BY DIMITRI SPECK - FinancialSense.com
On June 7th, 2012, the price of gold dropped by $22 in less than a second, guided by a computer algorithm during late trading
Sharp price drops in gold, for example $10 within a few minutes, can be observed frequently. Often they occur several times per week. The decline that happened on June 7, 2012 looks, at first glance, like such a drop as well, although some observers immediately noticed the extremely high speed. Market reports assessed the timeframe from "43 seconds" to "less than 5 minutes". According to spot price data with minute precision, the decrease was $20 in less than 2 minutes. The intraday chart below shows the price development in the spot market on June 7, 2012. The relevant decline is marked in red.
America's Greatest Threat
BY MONTY GUILD with TONY DANAHER - FinancialSense.com
By a host of measurements, the dependence of Americans on the largesse of the Federal government is growing at a rapid rate. This dependence is worrisome because it poses two dangers — to American economic stability and to the fabric of civil society. The economic danger has captured the news in the current election cycle, with both candidates trying to show how their respective plans are a way out of the closing debt and deficit trap. Total Federal debt is on course to reach 100 percent of GDP in two years, and historical analysis shows such debt levels as a tipping point at which economic negatives worsen dramatically.
It's the Economy, Not the Uncertainty, Stupid
By Matthew O'Brien - TheAtlantic.com
There's one certainty about the economy. Uncertainty is bad for it.
Actually, there's another certainty about the economy. Uncertainty never goes away. Sometimes we forget this; then we belatedly remember it. This alternating cycle of optimism and pessimism is what Keynes famously called "animal spirits" -- in other words, the psychological drama that drives our economic drama.
A Poor $16 Billion 30-Year Treasury Long Bond Auction
By JON C. OGG - 247WallSt.com
The U.S. Treasury has not had the best week when it comes to Treasury debt auctions. The 30-Year $16 billion Long Bond auction was a dud. You have to consider that the 30-year 'on the run' Treasury was yielding 2.79% after a 5 basis point rise shortly before the auction results were announced. This auction went out with a yield of 2.825%, indicating weak demand. The bid-to-cover ratio was only 2.41 (under a 2.65 average) and direct bidders were only 7.7% of the offering. The indirect bidders (foreign central banks and entities) did manage to buy 36.7% of the offering.
Blink! U.S. Debt Just Grew by $11 Trillion
By Laurence Kotlikoff and Scott Burns - Bloomberg.com
Republicans and Democrats spent last summer battling how best to save $2.1 trillion over the next decade. They are spending this summer battling how best to not save $2.1 trillion over the next decade.
In the course of that year, the U.S. government's fiscal gap -- the true measure of the nation'sindebtedness -- rose by $11 trillion.
The fiscal gap is the present value difference between projected future spending and revenue. It captures all government liabilities, whether they are official obligations to service Treasury bonds or unofficial commitments, such as paying for food stamps or buying drones.
El-Erian Says Be Wary Of Steepening Yield Curve
By John Detrixhe and Tom Keene - Bloomberg.com
Investors should be wary of a steepening yield curve in the U.S. Treasury market, according to Pacific Investment Management Co.'s Mohamed El-Erian.
While yields on government securities due in eight years and less are anchored by Federal Reserve monetary policy, bond buyers should be wary of longer-maturity debt, El-Erian, the chief executive officer of the world's largest manager of bond funds, said in a "Bloomberg Surveillance" radio interview with Tom Keene and Ken Prewitt.
Nationalism in the 1930s help bring Hitler to power Europe: The Resurgence of Nationalism!
By Brad McDonald - theTrumpet.com
As nationalist sentiment intensifies, Europe's leaders have precious little time to make integration work.
Perhaps it's a crude way to view it, but the essence of the European Union's current crisis is captured in the photo of German Olympic discus throwerRobert Harting celebrating his recent gold medal. Take a glance at the photo and look past Harting, his proud smile and taut, powerful core.
Look at the flag.
Thinking …
Thinking …
Notice: Harting isn't cloaked in the EU flag.
'The Fourth Reich' Has Arrived
From theTrumpet.com
The Fourth Reich has taken over Europe, according to Il Giornale, a right-wing Italian newspaper. In a headlining story last Friday, Alessandro Sallusti, the editor in chief for the paper, asserted that Italy is "no longer in Europe. It is in the Fourth Reich."
These bold comments come in the wake of recent non-productive talks between Italy, Spain and the European Central Bank (ECB) over fiscal aid for the two struggling members of the eurozone. ECB President Mario Draghi has put pressure on Italy and Spain to formally apply for aid from the bank before any steps are taken to provide assistance. If either nation were to make a formal request, strict conditions would be enforced by the ECB in exchange for buying its bonds—strict conditions that would essentially put either nation at the mercy of the German-influenced ECB.
The House has Burnt Down
BY HUGO SALINAS PRICE - FinancialSense.com
The house has burnt down. Nothing is left of it but a pile of wet ashes. Pop and Mom and their numerous progeny gaze at the ruins, speechless.
Pop turns to the family and says: "Mom and I will have a summit meeting tomorrow, to find a solution to this problem. Tomorrow we'll have the definitive solution to this crisis; in the meantime we'll sleep in a tent that our German neighbors will rent us."
The European house has burnt down financially. In 1999 the Euro was installed as the single currency for a central group of European nations. The interest rates of the various nations were to be set by "diktat" of the European Central Bank. No nation was to be allowed to have a Fiscal Deficit of more that 3% of GNP.
Euro-architect hints at Greek exit
BY VALENTINA POP - EUObserver.com
BRUSSELS - Former European Central Bank (ECB) chief economist and German central banker Otmar Issing has warned that the eurozone may split up - another voice in the chorus talking about a Greek exit from the common currency.
"Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen," Issing wrote in his latest book, entitled: "How we save the euro and strengthen Europe."
More than half young Greeks are unemployed
BY NIKOLAJ NIELSEN - EUObserver.com
BRUSSELS - Greek youth unemployment figures released on Thursday (9 August) by the Hellenic Statistic Authority marked another record high at 54.9 percent in May compared to around 41 percent to the same period last year.
"It is indeed a matter of deep concern for the commission and the unprecedented level of unemployment in Greece, in particular for youth unemployment," European Commission spokesperson Olivier Bailly told reporters in Brussels.
Hard landing for China as factory prices fall and deflation looms Factory gate prices in China fell at an accelerating rate of 2.9pc in July as the economy flirted with industrial recession, prompting calls for further stimulus to head off Japanese-style deflation.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"Severe deflation pressures are rippling across the country," said Alistair Thornton and Xianfeng Ren from IHS Global Insight. "Deflation, not inflation, is the greatest short-term threat to the Chinese economy."
"The hard landing has happened," said Charles Dumas from Lombard Street Research. "We don't believe offical data. We think GDP slowed to a 1pc rate in the second quarter."
A blizzard of weak data has caught policy-makers off guard, though shares rallied in Shanghai on hopes for monetary loosening fromChina's central bank after consumer price inflation (CPI) fell to 1.8pc.
What's Fed To Do As 15 Of 18 Banks Fixing Libor Aren't American
By Caroline Salas Gage - Bloomberg.com
Mark Calabria at the Cato Institute usually isn't shy about criticizing Timothy F. Geithner. Yet he says it was ultimately up to the British to deal with the manipulation of Libor, as only three of the 18 banks that set the London interbank offered rate are based in the U.S.
Geithner was president of the Federal Reserve Bank of New York in 2008 when he learned about banks under-reporting Libor, the global benchmark for $500 trillion of securities. He sent a memo in June of that year to Bank of England Governor Mervyn King raising concerns and recommending changes in how the rate is calculated. Little has been done to address the issue since, and King said last month that he only just learned of wrongdoing and Geithner didn't highlight malpractice.
Libor needs to be replaced, says Sir Mervyn King Libor has stopped working and should be replaced, said Sir Mervyn King, Governor of the Bank of England.
By Helia Ebrahimi and Angela Monaghan - Telegraph.co.uk
Presenting the central bank's inflation forecasts, Sir Mervyn said that banks had stopped using Libor effectively since the financial crisis. "What's become apparent is there is no such thing as the interbank borrowing rate," he said. "The dominant feature in setting interbank borrowing rates is now the credit risk associated with the potential failure of a bank, and that varies from bank to bank.
"So the idea of having a panel to sort out the interbank rate no longer makes sense." Last week, the Government launched a review into the potential of an alternative rate-setting process in an effort to reform the key interest-rate benchmark that is used to help set the price of mortgages and loans.
Standard Chartered faces downgrading of credit rating Claims that Standard Chartered broke US sanctions against Iran could lead to credit rating being downgrading, the agency Fitch warned
By Jill Treanor - Guardian.co.uk
Claims that Standard Chartered broke US sanctions against Iran could result in its credit rating being downgraded, the agency Fitch warned on Thursday. The agency said it was still "too early" to judge the outcome and that there needed to be "more clarity". The bank is due to appear before the New York state department of finance services next week and it has been suggested that George Osborne has asked his US counterpart Tim Geithner to ensure it is treated fairly. The chancellor is said to have been reassured that there would be a coordinated approach between all the regulators involved – something which Sir Mervyn King of the Bank of England has also called for.
Sir David Walker to chair Barclays: profile The career of Sir David Walker, the former Bank of England executive who is to be named the new chair of Barclays, has spanned both public and private sectors.
By James Quinn - Telegraph.co.uk
Sir David Walker, who is to be named the new chairman of Barclays, has held positions at Morgan Stanley and the Bank of England.
He was also tasked with reviewing the corporate governance at British banks and other financial groups in 2009. Among his 39 recommendations were that directors should spend 30 days on the job and that chairmen should spend more time at banks; have better qualifications; more responsibilities; and be subject to annual re-election.
Treasury's Secretive $2.4 Trillion Mutual Fund Guarantee
By John Carney | CNBC
Details about a secretive government program to bail out money-market mutual funds are finally coming to light.
Acting without any explicit Congressional authority, the U.S. Treasury guaranteed in excess of $2.4 trillion of money market funds after the giant Reserve Primary Fund "broke the buck" following the bankruptcy of Lehman Brothers. The program, which ended on Sept. 18, 2009, seems to have successfully prevented a panicked run by money-market fund investors.
But until now, the Treasury has kept the identities of the funds that received government backing and the amounts guaranteed secret. It was not clear how many funds obtained backing or for how much taxpayers were on the hook during the program's duration.
Capitol Bancorp Of Michigan Makes Chapter 11 Filing
By Don Jeffrey - Bloomberg.com
Capitol Bancorp Ltd., (CBCR) a Lansing, Michigan, lender, filed for bankruptcy with a prepackaged reorganization plan after a proposed restructuring failed.
Capitol Bancorp, in its Chapter 11 petition filed today in U.S. bankruptcy court in Detroit, listed total assets of $112.2 million and debt of $195.6 million.
The company also reported today a net loss of $10.3 million in the quarter that ended June 30, compared with a loss of $16.4 million a year earlier. The loss was due to "continued costs associated with problem asset resolution."
In Social Psychology, Left-Wing Agenda is King Prejudice and discrimination in the ivory tower? Say it ain't so!
By Ryan Robertson - MRC.org
Those tolerant liberals! It's not news that in the arts and the soft sciences academia is intractably left-wing. It is noteworthy to see the bias categorized and quantified.
The journal Perspectives on Psychological Science has published an article by researchers Yoel Inbar and Joel Lammers, psychology professors at Tilburg University in the Netherlands.
It's based on their study showing the abundance of anti-conservative animus in its own field of social psychology.
Salon's Joan Walsh Equates Matt Drudge's Site
to White Supremacist Page 'Stormfront'
By Kelly McGarey - NewsBusters.org
Good liberals like Salon.com writer Joan Walsh don't believe in racial profiling. But political profiling, well, that's a different story.
In her August 8 article, "Spotting white supremacists," Walsh used the recent horrendous Sikh temple shooting as an occasion to dust off a widely-maligned 2009 Department of Homeland Security report that suggested that domestic terrorist incidents were likely to hail from extremists on the political right. She also used the occasion to slander conservative Matt Drudge by comparing his website to that of a white supremacist group called Stormfront [emphasis mine]:
Camden NJ, Population 77,344 Fires Entire Police Force,
270 Officers; Why Cities are Going Bankrupt
By Mike Shedlock - GlobalEconomicAnalysisBlog.com
In an effort to rein in costs, the city of Camden NJ will fire its entire 270 member police force and instead will use Camden County officers.
Mayor Dana Redd and Police Chief Scott Thomson noted that for the same price, Camden can have 400 county officers on staff. That is nearly a 50% increase in the number of officers for the same price.
Of course the unions are howling.
In these cases, the county typically hires most or all of the officers at lower wage and benefit levels, but the article only notes a very vague "some current Camden officers will get jobs on the new force."
Postal Service Losing $42,335,766 Per Day
By Jon Street - CNSNews.com
(CNSNews.com) - The U.S. Postal Service has been losing an average of $42,335,766 per day in fiscal 2012.
On Thursday, the service reported a third quarter (April 1-June 30) net loss of $5.2 billion, bringing its fiscal year-to-date net loss to $11.6 billion.
There were 274 days in the first three quarters of fiscal 2012. Thus the Postal Service has lost, on average, $42,335,766 per day in this fiscal year.
HP Braces for Huge Loss After $8 Billion EDS Writedown
Reuters - CNBC.com
Hewlett Packard warned of a mammoth quarterly loss after writing down $8 billion on the value of its services business, most of which it acquired four years ago with its $14 billion purchase of EDS.
The world's largest computer maker also plans to replace its head of services, a vast but sluggish division that new CEO Meg Whitman wants to reshape into a stronger competitor to the likes of IBM.
Whitman, the former eBay CEO who took up the computing giant's helm in 2011 to some skepticism about her technology and hardware credentials, is trying to turn around the company.
It's Just Business:
How Corporate America Made Slaves of the Young
By Christian Neumeister - Truthdig.com
Companies across the nation are gleefully denying interns fair wages for their work, in flagrant violation of long-standing labor law, and have the nerve to tell the world they are doing these people a favor.
Huge numbers of college students and recent graduates in a tight labor market are too scared to ask for compensation. Consequently, many interns must work for years in unpaid positions to build their résumés while depending on their parents for financial support. Not only do unpaid internships stop some from paying down a collectively exploding student debt, they compound the economical class differences between those who can afford to work for free and those who can't.
CBO: Obamacare Will Leave 30 Million Uninsured
By Patrick Burke - CNSNews.com
(CNSNews.com) -- A new Congressional Budget Office (CBO) report says that under the Affordable Care Act, a.k.a. Obamacare, 30 million non-elderly Americans will remain without health insurance in 2022.
One of the main arguments the Obama administration made for passing the Affordable Care Act was that it would provide coverage for the uninsured.
Currently, accoriding to CBO, there are 53 million uninsured persons in the United States, including uninsured illegal aliens. The CBO estimates that in 2022--8 years after the Affordable Care Act has been fully implemented--30 million people will remain uninsured.
Bill Moyers: The Case for Medicare
Truthdig.com
Medicare is an issue near and dear to PBS host Bill Moyers. He was, after all, a key aide to President Lyndon Johnson when the health program was developed and passed in Congress. With Medicare marking its 47th anniversary last week, Moyers shared his thoughts about the program, and how he says it can be saved.
Moyers & Company:
... Lyndon Johnson had warned: "We will face a new challenge and that will be what to do within our economy to adjust ourselves to a life span and a work span for the average man or woman of 100 years."
That longevity, and the cost, are what we must now reckon with. As the historian Robert Dallek has written, Medicare and Medicaid, the similar program for the very poor, "… did not solve the problem of care at reasonable cost for all Americans," but "the benefits to the elderly and the indigent … are indisputable."
Bill Moyers Essay: Everyone Should Be Entitled to Medicare [video]
Bill shares his thoughts on the 47th anniversary of Medicare — the apex of Lyndon Johnson's ambitious vision for America. Bill was a key Johnson aide as they developed Medicare and pressed Congress to pass it. How to save Medicare today? The answer, says Bill, is obvious: make it available to every American.
WashPost Notes Departing Komen CEO's Large Salary,
Ignores Planned Parenthood CEO's Larger One
By Jill Stanek - NewsBusters.org
Susan G. Komen for the Cure's founder and CEO is stepping down. Nancy Brinker is joined on her fall on the sword by her president and two board members, all denying the Planned Parenthood debacle had anything to do with it.
Meanwhile, a Washington Post op-ed on Brinker's demise, "Nancy Brinker's Komen shakeup too little and way too late," had nary a contrary word to say about Planned Parenthood or its CEO while noting:
Brinker's own reputation was on the line as her $417,000 salary and the top executive's first-class air travel became part of the debate about whether the organization had strayed from its mission.
In Colorado, no news taxes -- ever? If a Government Can't Tax, Is It Really a Government? A ground-breaking Colorado case
tests a constitutional guarantee.
By Garrett Epps - TheAtlantic.com
Could Congress invalidate your state's constitution and demand it be rewritten?
The answer -- disconcertingly enough for those who regard the states as "sovereign," as against the federal government -- is almost certainly yes. It won't happen, of course. But last month, a related question emerged that may have more practical importance: Could a federal court do the same thing?
The clause that raises this question is called the Guaranty, or "Republican Form of Government," Clause of Article IV, § 4. It provides that "[t]he United States shall guarantee to every State in this Union a Republican Form of Government . . . ." The clause, usually obscure, is relevant now because of a preliminary district court decision on July 30 in Kerr v. Hickenlooper, a case in which members of Colorado's legislature have gone to court to argue that the state's own constitution is unconstitutional.
Citigroup tries another tack to dig out of the housing crisis:
turn owners into renters
AP - WashingtonPost.com
Citigroup will try something new to keep struggling homeowners out of foreclosure: turn them into renters.
CitiMortgage announced the program Wednesday and painted it as a way to help homeowners stuck in houses they can't afford. The New York-based bank, however, won't manage the program. Instead, it is handing the reigns to an investment firm. The bank just sold a $158 million mortgage portfolio to investment firms that will manage the program.
Banks Take High From Homeowners and Sell Low to Investors
Posted by Alexander Reed Kelly - Truthdig.com
Record low interest rates on mortgages and refinancing deals are reducing costs to homeowners. But banks are making unusually high profits by selling bundles of those loans to investors at similarly low rates, which means borrowers could be saving even more.
DealBook at The New York Times:
Banks are making unusually large gains on mortgages because they are taking profits far higher than the historical norm, analysts say. That 3.55 percent rate for a 30-year mortgage could be closer to 3.05 percent if banks were satisfied with the profit margins of just a few years ago. The lower rate would save a borrower about $30,000 in interest payments over the life of a $300,000 mortgage.
Wells Fargo's Home-Loan Hegemony
Spurs Stability Risk: Mortgages
By Dakin Campbell - Bloomberg.com
Wells Fargo & Co. (WFC)'s grip on the U.S. mortgage market has tripped alarms among regulators and lawmakers concerned that the bank's control over one of every three new loans could hurt consumers and undermine markets.
Wells Fargo and its two largest rivals, JPMorgan Chase & Co. (JPM) and U.S. Bancorp, made half of all U.S. home loans in the first half, according to Inside Mortgage Finance, an industry publication. Wells Fargo alone controlled 33.1 percent. In mortgage servicing, which involves billing and collections, four firms have 50 percent of the business, and Wells Fargo is No. 1 in that field, too, with 18.5 percent.
U.S. Mortgage Delinquencies Rise For First Time In Year
By John Gittelsohn - Bloomberg.com
The U.S. mortgage delinquency rate increased for the first time in a year as slowing economic growth left more borrowers struggling to pay their bills.
The share of home loans at least 30-days late rose to 7.58 percent in the second quarter on a seasonally adjusted basis, up from 7.4 percent in the previous three months, the Mortgage Bankers Association said in a report today. The rate for seriously delinquent loans, those more than 90 days behind, climbed to a seasonally adjusted 3.19 percent from 3.06 percent.
World's Oldest Shipping Company Closes In Industry Slide
By Isaac Arnsdorf - Bloomberg.com
The world's oldest shipping company sold its last vessel and is going out of business, according to the liquidator.
Stephenson Clarke Shipping Ltd., started in 1730, has been placed into liquidation, according to a statement from accounting firm Tait Walker. The Newcastle-Upon-Tyne, England- based shipper, which employed nine people, sold off its final vessel in July, according to the statement.
The Baltic Dry Index, a gauge of rates to transport dry- bulk commodities including grains and coal by sea, is down 55 percent this year and on course for a fourth annual slide in five years, data compiled by Bloomberg show. The current slump is "one of the worst experienced for many years," the shipping company said in the statement.
Google to pay record $22.5m fine to FTC over Safari tracking Internet giant tracked iPhone, iPad and Mac users by circumventing the privacy protections on Safari web browsers
By Charles Arthur - Guardian.co.uk
Google is to pay a record $22.5m (£14.4m) fine to the Federal Trade Commission (FTC) in the US after it tracked users of Apple's iPhone,iPad and Mac computers by circumventing privacy protections on the Safari web browser for several months at the end of 2011 and into 2012.
The fine is the largest paid by one company to the FTC, which imposed a 20-year privacy order on Google in March 2010 after concerns about the launch of its ill-fated Buzz social network.
States skirmish for drone test sites FAA to tap six proving grounds
By Ben Wolfgang-The Washington Times
LAS VEGAS — As drone technology begins its boom, states across the nation are jockeying for their piece of the pie.
By the end of the year, the Federal Aviation Administration will select six unmanned aerial vehicle test sites to determine how drones — available for personal and commercial use by September 2015 — handle varying weather, altitude and other conditions.
At least 26 states, including Virginia and Maryland, have expressed interest in hosting one of the locations, expected to generate millions of dollars in economic activity and guarantee the states a hand in the next great technological revolution.
NYPD unveils new $40 million super computer system
that uses data from network of cameras, license plate readers and crime reports Domain Awareness System is a joint venture between city and Microsoft. Commissioner Ray Kelly says system is able to access information through live video feeds and allow cops to get reading on radioactive substances
BY ROCCO PARASCANDOLA and TINA MOORE - NYDAILYNEWS.com
The NYPD is starting to look like a flashy, forensic crime TV show thanks to a new super computer system unveiled Wednesday near Wall St.
The Domain Awareness System designed by the NYPD and Microsoft Corp. uses data from a network of cameras, radiation detectors, license plate readers and crime reports, officials said.
"We're not your mom and pop police department anymore," Mayor Bloomberg crowed. "We are in the next century. We are leading the pack."
Using 3D technology to enhance customer experience Lingerie brand Empreinte has been pushing the boundaries of in-store technology with 3D holographic models
Guardian.co.uk
What was the thinking behind the hologram campaign?
The idea of the campaign was to create a real buzz around the brand and our new concept store. The hologram was actually just one piece in an otherwise global communication strategy, which had two main objectives – create awareness and drive people to the store.
This global strategy also included meeting with bloggers, advertising on fashion blogs and with social media insiders, posting a hologram video on YouTube, and a PR strategy targeting consumers and women's magazines.
The Meaning of Square:
What's So Great About a Cashless Society?
By Derek Thompson - TheAtlantic.com
The larger significance of Starbucks partnering with the mobile payments software company Square is bigger than faster lines for coffee. But what is it, exactly?
One small step for vanilla lattes, one giant leap for mankind, is how the world characterized the deal yesterday between Starbucks and Square, the new mobile payment company that, in addition to the iconic square swiper shown above, can identify people and their financial information as they approach a register, match the merchant with the customer's face and payment info and allow transactions to happen without cash, credit, or even arms:
"That's $5."
"I'm Derek Thompson."
"Thanks, you're all set."
... and I'm out the door with my drink.
This is what a cashless society looks like. And it is cool. But, like, how cool really?
Virus found in Mideast can spy on finance transactions Cyber surveillance virus that has been found in Israel, Lebanon and PA comes from the makers of Stuxnet, security firm says
Reuters - YnetNews.com
A new cyber surveillance virus has been found in the Middle East that can spy on financial transactions, email and social networking activity, according to a leading computer security firm, Kaspersky Lab.
Dubbed Gauss, the virus may also be capable of attacking critical infrastructure and was built in the same laboratories asStuxnet, the computer worm widely believed to have been used by the United States and Israel to attack Iran's nuclear program, Kaspersky Lab said on Thursday.
Newly discovered malware linked to Stuxnet, Flame
By Hayley Tsukayama - WashingtonPost.com
Researchers said Thursday that they have identified a new kind of malicious software that appears to be the creation of the same state-sponsored program that produced the viruses known as Stuxnet and Flame.
The malware, the researchers said, shares characteristics with the previously identified viruses, which were aimed at computers tied to Iran's nuclear program. But the new software has been found primarily in Lebanon. It is designed to steal information, including customer data from banks as well as PayPal and Citibank.
Underground sect found after nearly a decade
in Russian city of Kazan
Reuters - Independent.co.uk
Seventy members of an Islamist sect who have been living in an underground bunker without heat or sunlight for nearly a decade have been discovered living on the outskirts of the city of Kazan in Russia, local media reported.
The sect members included 20 children, the youngest of whom had just turned 18 months. Many of them were born underground and had never seen daylight until the prosecutors discovered their dwelling on 1 August and sent them for health checks.
Globalist's viewpoint on Syria Toward a Syria Consensus
By Javier Solana - Project-Syndicate.org
MADRID – The feeling is growing stronger by the day that Syrian President Bashar al-Assad's regime is approaching a tipping point. Kofi Annan, the United Nations and Arab League special envoy, has abandoned as hopeless his efforts to implement an internationally agreed six-point plan to end the violence. Now the international community must think seriously about how to minimize the dangers inherent in Syria's domestic turmoil.
Lack of agreement within the UN Security Council has prolonged the conflict and contributed to changing its nature. What began as a popular uprising inspired by the demands of the Arab Spring has taken on increasingly sectarian and radical tones. This reflects loss of hope in international support, while making it more difficult to achieve a negotiated solution.
ESADE Center for Global Economy (Javier Solana) is quietly reshaping the global economy for one world governance, under cover of climate change and saving the environment... Agenda 21 in action to result in one world government, and NWO.
ESADEgeo expands its global governance research through a collaboration agreement with the Ramón Areces Foundation
The agreement will expand research on critical governance mechanisms that affect the global economy and the climate
ESADE's Center for Global Economy and Geopolitics (ESADEgeo) has reached a collaboration agreement with the Ramón Areces Foundation to promote research as part of its Global Governance research programme. The objective of this programme is to research the main international factors that influence global governance in areas such as energy, natural resources and the environment.
The Ramón Areces Foundation, known for its contribution to scientific and technical research in Spain, has made a two-year commitment to contribute to the ESADEgeo programme's development. Today, the Ramón Areces Foundation is known as an international leader in the study of economic and governance-related globalisation, and for working alongside businesses, governments and social organisations.
Now Is Not Yet Time for Syria Military Intervention
Editors - Bloomberg.com
Syria is breaking apart. The regime is under pressure, the death toll from the conflict has accelerated, and calls are growing for the U.S. and its allies to intervene militarily to cut short the emerging civil war between Sunni and Alawite Muslims.
This would be a mistake. Just because policies followed to date have failed, it doesn't mean that the military options on the table will work. They may not improve the final outcome of a conflict that's unlikely to stop once President Bashar al-Assad has gone.
Saudi Arabia threatens to strike any Israeli aircraft en route to Iran S. Arabia: We'll intercept any IAF aircraft en route to Iran US officials transmit message from Riyadh saying any Israeli aircraft crossing its airspace en route to Iran will be shot down. Israeli officials claim Saudi threat is yet another American attempt to foil strike
YnetNews.com
More obstacles? Saudi Arabia has informed Israel that it would intercept any Air Force aircraft crossing its airspace en route toIran, Yedioth Ahronoth reported on Thursday.
The explicit message was transmitted via the United States, during talks with Obama administration officials in Jerusalem.
Syrian rebels withdraw fighters from Aleppo stronghold Free Syrian Army orders main fighting units to leave suburb of Salahedin after intensive shelling by regime planes and tanks
By Martin Chulov in Aleppo
and Ian Black, Middle East editor - Guardian.co.uk
Syrian rebels fighting the regime of Bashar al-Assad have withdrawn all their main fighting units from their stronghold in the Salahedin area of Aleppo, after heavy shelling by government forces.
The pullout from the northern city was ordered just after sunrise on Thursday after a night of intensive attacks by planes and tanks on all three rebel frontlines.
Free Syrian Army (FSA) commanders claimed the withdrawal was tactical and said a small force had stayed behind to oppose any advance by government forces. But the move seemed to mark a significant moment in the fight for control of southern Aleppo, which had raged for more than two weeks, claiming several hundred casualties.
------ Important -------
Yesterday, several articles on 'singularity' were posted because the concept has reached a mainstream financial web site, but it is New Age D E C E P T I O N imposing itself upon this world. Please take time to watch the videos below, which expose more about the New Age, NWO, 2012 deception, singularity, and transhumanism, which will come to the forefront for the purpose of deceiving all of humanity.
The LIE is that The Singularity will "AWAKEN The masses to The Divine Within Themselves!!" Not true, but it is the oldest lie in the book: ...."you will be like God, knowing good and evil."
DO NOT be deceived. These New Age lies will impact your life whether you choose to embrace or ignore the teachings of the New Age, a false and intolerant religion, which will usher in the New World Order and a one-world religion.
Hitler would have loved The Singularity:
Mind-blowing benefits of merging human brains and computers
By IAN MORRIS, PROFESSOR OF CLASSICS
AND HISTORY AT STANFORD UNIVERSITY- DailyMail.co.uk
Of all the tall tales in the science-fiction TV series Star Trek, what impressed me most when I was a little boy was the Vulcan mind meld.
Laying his hands on the head of a human (or, in one of the films, a humpback whale), Mr Spock could, for a moment, dissolve the distance between two living things.
Each experienced everything the other felt, thought, knew and saw.
Now it seems scientists are about to make the Vulcan mind meld a reality – and go far beyond it.
Singularity is Optional
by HHW- UnderstandingMatters.com
Singularity is the ultimate op-in for humans. It offers us the lust for life, freedom from want, pain, struggle, and DEATH. This choice is designed to usher in a transformation of humankind, into a New "Age of Aquarius" which was dawning in the late 1960s but in the plan long ago. It's free for the taking, but it will cost you everything. You decide.
The purpose of Singularity is basically three-fold: 1) glorification of man, as God, 2) overcome death in the flesh, 3) worship Satan as the most High God, in order to circumvent God's purpose of and for man, and His plan for mankind.
Aquarius - The Age of Evil (Full)
From Documentary film maker Keith Thompson
'Aquarius: The Age of Evil' examines the history of the new world order. It demonstrates that the new world order is New Age oriented. The Zeitgeist films and movement are exposed and shown to have ties to the New Age, Theosophy, Freemasonry and the new world order movements. It covers Benjamin Creme, Maitreya, 2012 and the utopian New Age coadjutors who have infiltrated the patriot-movement. The film investigates how the Bible predicts the coming new world order dystopia. The film also covers such topics as: Share International, Alice Bailey, Helena Blavatsky, Madam Blavatsky, H.P. Blavatsky, Theosophy, Theosophical Society, Lucis Trust, lucifer Trust, Freemasonry, Masonic Lodges, communism, socialism and more. Called into question are the opinions and PUBLIC teachings of jordan maxwell, david icke, peter joseph, and d.m. murdock (aka acharya s)
Interviews with Constance Cumbey, Dr. Scott Johnson, and Chris White.
Researched by Keith Thompson and Eric Brame
Human 2.0 - Transhumanism, Singularity & Genetic Armageddon pt.1/11
Tom Horn and Steve Quayle Special Q-Files Broadcast on Transhumanism, Post-Humanism, Singularity, Future Military Technology and the Genetic Armaggeddon. https://www.youtube.com/watch?v=qlOdHsjYlU0
New Buy Signals for Gold and Oil
BY CARL SWENLIN - FinancialSense.com
For the SPX the day began in a boring fashion and got more boring as the day wore on. There were, nevertheless, four new BUY signals generated.
Gold and crude (USO) both generated new BUY signals (from neutral). We will discuss these later in the report.
Two new BUY signals were generated on the Materials (XLB) and Equal Weighted Materials (RTM) sector indexes. This was the result of the PBI crossing up through its EMA. It also happens that the 20-EMA is above the 50-EMA on both charts, making the signals a little more solid. There is still the problem of the choppy, sideways price action that, if it continues, will put these BUY.
Gold Climbs As China's Inflation Cools, Boosting Stimulus Hopes
By Phoebe Sedgman - Bloomberg.com
Gold rose to the highest level in a week as China's inflation cooled and before a report that may show an increase in U.S. jobless claims, boosting optimism that central banks may take steps to bolster the global economy.
Gold for immediate delivery gained as much as 0.4 percent to $1,618.80 an ounce, the highest since July 31, and traded at $1,615.89 at 1:39 p.m. in Singapore. December-delivery gold rose as much as 0.3 percent to $1,620.30 on the Comex.
Keep Your Eye on Global Dow and Treasury Yields
BY RICHARD RUSSELL - FinancialSense.com
It's amazing the way this stock market is working. The pro traders buy the Dow — just in case the Fed triggers QE3. No pro can afford to miss a big rally. Then near the close, when QE3 is NOT triggered, the frustrated traders dump their stocks, and prepare to do the same thing the next day.
The retail public thinks the action is good, so they come in and buy the "bluechip stocks." But they don't dump when the traders exit the market, so the retail buyers are left high and dry with daily losses.
Below is our new friend, GDOW. I liken GDOW to a world industrial average of 150 blue chip stocks (it includes the 30 D-J Industrials plus over 100 international blue chips).
Is Inflation Lurking Despite High Unemployment?
By Rom Badilla, CFA, Bondsquawk - PragCap.com
After a dearth of major macro releases the last couple of days, yesterday's economic data releases show that productivity and wages for U.S. workers increased which may bode well for future consumer spending and economic growth.
The U.S. Department of Labor reported that Productivity which measures the growth of labor efficiency, in the second quarter improved by 1.6%. The increase surprised to the upside as consensus surveys were expecting 1.4%. In addition, this uptick follows an upward revision to the previous quarter of -0.5% from an initial report of -0.9%.
No More Growth Miracles
By Dani Rodrik - Project-Syndicate.org
CAMBRIDGE – A year ago, economic analysts were giddy with optimism about the prospects for economic growth in the developing world. In contrast to the United States and Europe, where the growth outlook looked weak at best, emerging markets were expected to sustain their strong performance from the decade preceding the global financial crisis, and thus become the engine of the global economy.
Economists at Citigroup, for example, boldly concluded that circumstances had never been this conducive to broad, sustained growth around the world, and projected rapidly rising global output until 2050, led by developing countries in Asia and Africa. The accounting and consulting firm PwC predicted that per capita GDP growth in China, India, and Nigeria would exceed 4.5% well into the middle of the century. The consulting firm McKinsey & Company christened Africa, long synonymous with economic failure, the land of "lions on the move."
Why Do We Pay Interest on Money Created Out of Thin Air?
By Cullen Roche - PragCap.com
I'm pulling this one out of the "Ask Cullen" section….it's a basic, but important question that might help many people better understand the role of banks in our economy. There's an interesting conflict of interest (no pun intended!) between institutions who issue the social construct that allows us to do many of the most essential things in life while also being motivated by profit generation (in essence, banks issue the social construct designed for public purpose, but do so primarily with private purpose in mind). But banks aren't inherently evil institutions just because they're profit motivated. In fact, you could easily argue that a competitive banking system is far superior to a government run banking system where profit is not the primary goal (I'll leave that up for readers to debate). But it's a fact that some bankers take advantage of their power for the benefit of themselves and their shareholders over the benefits of society. But as I described in the Understanding the Modern Monteary system paper, banks are a necessary cog in the machine. Monetary Realism thinks of them as the oil that lubricates the system and the entities that disperse the power of money creation away from a centralized government. They are not the driver of growth, but like the government, can be an important facilitator. Obviously, there are a lot of moving parts here….Feel free to discuss as always….
Economic Uncertainty is the REAL problem Business's real problem: Uncertainty, uncertainty, uncertainty
It's hard for corporate chiefs to plan for the future when they're waiting for a closetful of shoes to drop.
By Geoff Colvin - Fortune.CNN.com
FORTUNE -- When CEOs tell me that their No. 1 concern is uncertainty, as a great many do, my first reaction is skepticism. Please. Life is uncertain. Is this moment really different?
Actually it is: Economic uncertainty, especially policy uncertainty, is greater than it has been in many years. And if you're wondering why the U.S. economy is barely moving or why millions of workers can't find jobs, extraordinary uncertainty is a major part -- maybe the largest part -- of the answer.
Warning Signs of major economic collapse 18 signs, 6 charts, 3 videos predicting
a major economic collapse in USA & Europe
By Jason Beam - ReportsFromEarth.com
Here is a list of the most worrying signs indicating an imminent escalation of the financial situation in the US and Europe. As, again, nothing has been solved during the 2008 recession the coming economic collapse could be the worst in 100 years.
The economic system that most of the world relied on since the second world war is based on fiat money and never-ending increase of consumption and production. It failed to address and regulate the requirement that in order to keep businesses growing the purchase power of the many (99%) needs to grow - not the few(1%).
For decades, we were not living in a world of free trade but large-scale / accelerating corporatism and artificially enhanced consumerism peppered with planned obsolescence.
Don't Be Fooled, Regulations Cost Jobs
By Adrian Moore - RealClearMarkets.com
Mitt Romney has made reforming regulations a key, if vague, part of his economic plan. While acknowledging the multifaceted nature of weak economic conditions in America, the presidential candidate's website argues "a major part of the problem over successive presidencies, and one that the Obama administration has sharply exacerbated, is the regulatory burden on the economy."
Naturally, those who are suspicious of the private sector and look to bureaucracies for true wisdom scoff at this claim. They defend regulation by arguing that benefits exceed their costs. Sometimes that is true, sometimes not. Either way, it ignores the fact that often there are less costly ways to realize those benefits. And what is worse are claims that regulations are costless and even economically beneficial, resulting in new jobs!! As Travis Waldron put it at ThinkProgress "the GOP's 'job-killing regulations' rhetoric is built on a myth."
The ECB's Collateral Bailout Frankfurt finds subtler ways to support euro-zone sovereigns.
WSJ.com
So Mario Draghi is going to do whatever it takes to save the euro—but not yet. That was the message delivered after last week's meeting of the European Central Bank's Governing Council, dashing hopes for immediate action to dampen yields on Spanish and Italian debt. The ECB's policy interest rate is at a record-low 0.75%, but it's clearly too much to expect Mario Monti and Mariano Rajoy not to clamor for more central-bank action to cure their countries' economic doldrums.
It's not quite correct, though, to say that last week was a total wash for Mr. Draghi's petitioners. Some less-noticed news out of Frankfurt highlights a subtler channel through which the ECB has been keeping the lights on in ailing euro-zone countries: collateral requirements for central-bank assistance to banks. The Bundesbank may still be holding the ECB President back from large-scale monetization of European debt, but the Germans haven't stopped the central bank from drip-feeding euro-zone states in more indirect ways.
Fanning The Flames of the Euro Crisis Europe's 10 Most Dangerous Politicians The tone in the euro debate is becoming more aggressive. Bavarian Finance Minister Markus Söder said on Sunday that Greece must be 'made an example of.' Politicians in other countries are resorting to similarly provocative rhetoric. Ten populists are whipping up sentiment -- and thereby worsening the crisis.
Spiegel.de
Europe is in the midst of a serious crisis and the euro is in a perilous situation. Greece, the currency union's greatest problem child, has failed to push through necessary reforms. Spain is battling to avoid a full sovereign bailout. Italy too is grappling with soaring interest rates on government bonds due to its debt problems. So is Cyprus. And Slovenia may become the next country to need a bailout.
That's only the economic side of the euro crisis. It has another face, too: The people out there who are trying to profit from it -- namely every politician who is resorting to cheap populism in order to rack up domestic political points. Joining the ranks this week is Markus Söder, the finance minister of the German state of Bavaria. Söder is a member of the Christian Social Union (CSU), the Bavarian sister party to Chancellor Angela Merkel's conservative Christian Democratic Union. The CSU is part of Merkel's center-right coalition government. On Sunday, Söder said "an example must be made of Greece."
Update on Italy, The consequences of contagion?,
Are Central Banks now emasculated?
Published by Ian R. Campbell - StockResearchPortal.com
Why Read: Because Italy may already be 'the next big thing' in the Eurozone economic crisis. Everyone needs to be aware of that, and one 'buries their head in the sand' on this at their own peril.
Commentary: In 2011 Italy's GDP rang in at U.S.$2.2 trillion, making it the Eurozone's third largest economy after Germany (U.S.$3.6 trillion), France (U.S.$2.8 trillion), and larger than 4th largest Spain (U.S.$1.5 trillion). In 2011 Italy's reported GDP was just over 3% of world reported GDP.
To put the Eurozone's 2011 combined 17 country GDP in perspective, at U.S.$17.6 trillion it was 16% larger than that of the United States.
Reports today say that Italy's economy contracted by 0.7% in Q2 2012, which is the third consecutive quarter of Italian recession – with no end and seemingly worsening conditions in sight.
Greece's Power Generator Tests
Euro Fitness Amid Blackout Threat
By Jonathan Stearns and Natalie Weeks - Bloomberg.com
In the mountains of northern Greece lies an $800 million power plant whose future may help determine whether the country can salvage its euro status.
The facility near Florina, a town known as "Where Greece Begins," is the most modern of four production units that state-controlled Public Power Corp. SA (PPC) is scheduled to sell to competitors to meet four-year-old European Union demands that the country deregulate its energy market. The most powerful Greek union is now threatening nationwide blackouts at the height of the summer tourist season to derail the plan.
Portugal is longing for dictatorship
Pravda.ru
The Portuguese, like the Spaniards and Greeks, are dissatisfied with their government unable to overcome the current crisis. On these grounds many are nostalgic for the days of the dictators: Greece elected far-right nationalist and even fascist parties into parliament, and Portugal announced the dictator Antonio de Olivera Salazar "the greatest Portuguese" of all time.
July 27 marked 42 years since the death of Antonio de Olivera Salazar. He ruled the country for 40 years. Under him Portugal's economy prospered: GDP in the early 1970's was 7% per year. Why is the Portuguese economy not in the best condition now? Perhaps, the secret lies in the personal qualities of the politicians working for the benefit of the people.
The ability to bring together a decent team not working for the Americans or Germans is also important. This is true about Salazar, although no one denies the horrors of a totalitarian regime. However, the style of Salazar's government had nothing in common with Stalin's repressions and Nazi genocide; rather, he stuck to authoritarian policies and nationalist attitudes in order to preserve the colonial empire.
For the Chairman of the Council of Ministers, all in politics was relative. He engaged in politics as he saw fit and always objected when he was called a "brutal dictator."
Standard Chartered will test a new line Fraud is one thing, but this would verge on treason
By MarketWatch
SAN FRANCISCO (MarketWatch) — New York banking regulators' money-laundering allegations against Standard Chartered PLC will test regulators' tolerance that until now has been surprisingly forgiving.
StanChart, as it's known in the U.K. market, is alleged to have laundered $250 billion for Iran between 2001 and 2007, according to the British and American regulators.
Fed and Treasury Irate at NY Bank Regulator's
Vulgar Display of Public Diligence with Standard Chartered
JESSE'S CAFÉ AMÉRICAIN Spitzer: If they shut me up, who'll take my place? Lawsky: I will
The NY Banking regulators clearly do not understand the regulatory 'hands off' philosophy of Treasury and the Fed towards the pampered princes of finance and the privileged few.
This was supposed to have been privately settled amongst gentlemen with a gentle wristslap and a thorough coverup.
And of course this exposes the Federal government and their financerati as utter hypocrites, especially when they are stoking the fires of conflict.
Only the little people are meant to suffer for their country. For the favored few, everything is just another law-bending, money making opportunity.
The danger of letting software run the world... Software Runs the World:
How Scared Should We Be That So Much of It Is So Bad? When software works, you can buy an airline ticket and sell a stock. When it fails, you can miss a flight and a bank can lose a billion dollars. Do we respect the power of software as much as we should?
By James Kwak - TheAtlantic.com
What do most people think of when they think of software? A decade ago, probably Microsoft Word and Excel. Today, it's more likely to be Gmail, Twitter, or Angry Birds. But the software that does the heavy lifting for the global economy isn't the apps on your smartphone. It's the huge, creaky applications that run Walmart's supply chain or United's reservation system or a Toyota production line.
A very dark Knight Exchanges' computerized Achilles heel
By Charles Gasparino - NYPost.com
The disaster at Knight Capital Group is about a lot more than a computerized-trading program gone wrong — it also exposed massive incompetence among the folks who are supposed to be watching the markets.
The hapless Knight lost more than $400 million in far less than a trading day thanks to the bum program, and nearly went out of business.
CEO Tom Joyce, a former long-time executive at Merrill Lynch and one of stock market's go-to-guys, is earning kudos for scrambling last weekend to save the company and 1,500-plus jobs, many of them in the New York area. And it is good that Knight employees from traders to secretaries are still getting paychecks — but don't go anointing Joyce as Wall Street's Most Valuable Player for his last-minute heroics.
The real bubble is about to burst Economist Richard Duncan:
Civilization May Not Survive 'Death Spiral'
By Terry Weiss, Money Morning
Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America's $16 trillion federal debt has escalated into a "death spiral, "as he told CNBC.
And it could result in a depression so severe that he doesn't "think our civilization could survive it."
And Duncan is not alone in warning that the U.S. economy may go into a "death spiral."
Since the recession, noted economists including Laurence Kotlikoff, a former member of President Reagan's Council of Economic Advisers, have come to similar conclusions.
Kotlikoff estimates the true fiscal gap is $211 trillion when unfunded entitlements like Social Security and Medicare are included.
Uncle Sam Still Living Well Beyond His Means
By Martin Hutchinson | Slate.com
Uncle Sam just can't seem to stop living beyond his means. While U.S. consumer credit failed to match its June 2008 peak, outstanding debt of domestic U.S. non-financial sectors still stands at nearly 250 percent of GDP, against 232 percent just before the financial crisis hit. While the consumer has deleveraged a bit, business debt is flat and government borrowing has soared. At some point, this just has to end.
Economists Carmen Reinhart and Kenneth Rogoff demonstrated that recessions preceded by a financial crash can be exceptionally deep and long, because of the reduction of debt that needs to occur before normal growth returns. Since 2008, with unprecedented levels of fiscal and monetary stimulus, no net U.S. deleveraging has occurred; rather the liabilities of non-financial sectors have grown faster than GDP. While households have cut back (partly through defaulting on mortgages and credit cards) from 97 percent of GDP to 83 percent, business debt kept pace with GDP and the government's balance sheet has soared from 57 percent of GDP to 89 percent.
Despite controversy,
9th U.S. Circuit Court of Appeals' conference will be on Maui
Pacific Business News by Janis L. Magin
The 9th U.S. Circuit Court of Appeals' 2012 conference will start as planned on Monday, with some 600 people from the federal circuits in nine western states gathering on Maui for the four-day event.
The conference had drawn criticism from Republican senators, who questioned the expense of holding the conference on Maui so soon after the scandal over the General Services Administration's Las Vegas conference and trips officials took to Hawaii.
In a letter Friday to Sens. Jeff Sessions, R-Ala., and Charles Grassley, R-Iowa, Chief Judge Alex Kozinski said it was too late to cancel the conference, which was booked at the Hyatt Regency Maui Resort & Spatwo years ago.
Rep. Steve King considering bill
to repeal everything Obama has signed
REP STEVE KING - Examiner.com
If Rep. Steve King (R-IA) has his way, everything President Obama has signed into law would be repealed, and he is considering a bill to do just that, The Hill reported Wednesday.
"King put forward this suggestion to an Iowa audience on Tuesday, when he also reiterated his threat to sue the Obama administration for its June decision not to deport younger illegal immigrants," Pete Kasperowicz wrote.
He also told a group of about 60 people in Humboldt County that he intends to sue the administration over an executive orderstopping the deportation of certain illegal immigrants.
Report: Rep. Steve King mulling bill
to repeal everything Obama has signed
By Pete Kasperowicz - TheHill.com
Rep. Steve King (R-Iowa), an outspoken critic of just about everything President Obama supports, is considering introducing a bill that would repeal everything Obama has signed into law.
King put forward this suggestion to an Iowa audience on Tuesday, when he also reiterated his threat to sue the Obama administration for its June decision not to deport younger illegal immigrants. Under that policy change, illegal immigrants who are in school or have served in the military would get a two-year deferral from deportation.
Be wary of talk about privatizing the post office A recent default by the U.S. Postal Service has revived talk about privatizing the post office, but the U.S. mail hasn't come close to outliving its usefulness.
By Michael Hiltzik - LATimes.com
While thumbing through the household mail one recent day — a bill from the vet, a statement from the bank, 47 come-ons for low-interest credit cards and a birthday card from Grandma — I pondered the following riddle:
Why is it that the same conservatives who harped on how an obscure provision of the U.S. Constitution should have invalidated the healthcare reform act never talk about the provision that gives the federal government responsibility for postal service?
It's right there, at Article I, Section 8. Yet, in some quarters, talk of privatizing the post office never seems to ebb. That talk is experiencing another surge just now, because theU.S. Postal Service is in the process of defaulting on a payment of more than $5 billion owed to the Treasury.
US bankruptcy laws protect thieves
By Fred Feldkamp - InstitutionalRiskAnalysis.com
It may be unfair to put John Boehner in the position of Mikhail Gorbachev on this issue. He is just one of the 435 men and women responsible for what may be THE most outrageous 'wall' blocking the application of America's cherished 'rule of law' to gain recoveries from known crooks. Only Congress, however, can change the US Bankruptcy Code to remove this 'wall,' and John Boehner is the current Speaker of the US House of Representatives which has, to date, refused to eliminate this travesty of justice.
About the only thing that one can say positively about this problem is that it was not created intentionally. Allowing this 'wall' to continue blocking recoveries by innocent creditors from common thieves for even one more day, however, is obnoxious to all who believe in and support this great nation.
A123 Goes Chinese --
Will Washington Learn It Can't Mandate A Market?
By Bob Lutz, Contributor - Forbes.com
A Chinese auto parts company, Wanxiang, has come to the rescue of cash-strapped A123 Systems, an American high-tech lithium-ion battery maker and centerpiece of the Obama administration's "green jobs" revolution. Wanxiang can acquire up to an 80% of the company in return for an investment of up to $450 million.
The recipient of a $249 million "green technology" grant from our federal government, A123, believing their own (and everyone else's) hype about the millions of electric vehicles that would soon be filling the nation's highways (it will happen, but not soon) set about proving an old adage: stupidity and waste increase with the amount of money available. Production capacity was set at a level that was way overly optimistic, and the headquarters complex, with its magnificent office suites and marbled lobbies, was something only a company with tons of money would dream of. But I'm sure the risk seemed low: After all, the "green revolution" was upon us. Even Nancy Pelosi said it was so!
Housing regulator warns about 'eminent domain' use
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — The regulator for government-seized mortgage giants Fannie Mae and Freddie Mac on Wednesday warned against the use of so-called eminent domain to restructure home loans.
San Bernardino County has proposed using such powers to seize distressed mortgages at a discount and then refinance them for struggling homeowners. Chicago officials also are considering the idea, according to reports. Although mortgage rates are near record lows, underwater homeowners are essentially blocked from refinancing their loans.
FHFA Weighs in on Eminent Domain Proposals
BY JANN SWANSON - MortgageNewsDaily.com
The Federal Housing Finance Agency (FHFA) will post a notice in the Federal Register on Thursday announcing that it was open to input from any persons with views on the subject of eminent domain as a mechanism to restructure performing loans. The agency thereby entered the growing controversy around the subject.
As background, in June the Board of Supervisors in San Bernardino County California announced a Homeowner Protection Program in which they proposed to use their power of eminent domain to take underwater mortgages from lenders and restructure them for borrowers at the fair market price. Officials in Berkeley, California and Chicago subsequently passed similar measures.
The Perverse Reason Home Prices Are Rising
By Jordan Weissmann - TheAtlantic.com
Doesn't it sometimes seem like every time there's good news about the economy, it comes with a big, infuriating catch?
Take housing. Over the last few months, economists have been noticing glimmers of good news out of the real estate market -- signs that home values may have finally bottomed out and are now turning a corner. There are more buyers and fewer houses sitting around on the market. And according to new stats from from Fannie Mae and CoreLogic, prices kept chugging higher through June, as illustrated in the chart below.
U.S. Midwest hit by Perfect Gasoline Storm
247WallSt.com
Retail gasoline prices in the U.S. Midwest were as much as 50 cents higher than in the rest of the country. By Monday, the price of a gallon of regular unleaded jumped 13 cents from last week in Detroit to settle at $3.99. The spike in retail gasoline prices follows a series of pipeline spills in Wisconsin and refinery shutdowns in Chicago and elsewhere. The impact of the string of industrial incidents on consumers in the region may be short-lived, but retail prices rarely decline as fast as they increase.
Survey: 61% of employers
expect cost increase from healthcare law
By Chad Terhune - LATimes.com
More than 60% of employers in a new survey anticipate some increase in their health benefit costs due to the federalAffordable Care Act.
The survey of 1,203 employers by the Mercer consulting firm found that 20% of those businesses expect an increase of 5% or more.
The firm said employers in retail and hospitality, which often have large numbers of part-time and lower-paid workers, will be among those most affected when the healthcare law takes full effect in 2014. Employers will be required to extend coverage to all employees working 30 hours or more per week or face possible penalties, according to Mercer.
Papa John's: 'Obamacare' will raise pizza prices
By BYRON TAU - Politico.com
Pizza chain Papa John's told shareholders that President Obama's health care law will cost consumers more on their pizza.
On a conference call last week, CEO and founder John Schnatter (a Mitt Romney supporter and fundraiser) said the health care law's changes — set to go into effect in 2014 — will result in higher costs for the company — which they vowed to pass onto consumers.
"Our best estimate is that the Obamacare will cost 11 to 14 cents per pizza, or 15 to 20 cents per order from a corporate basis," Schnatter said.
Arizona's first Potbelly Sandwich Shop set to open in Phoenix
Phoenix Business Journal by Cale Ottens
Arizona's first Potbelly Sandwich Shop is opening in the Town & Country shopping center near 20th Street and Camelback Road in Phoenix on Aug. 14.
The grand opening of the popular Chicago-based gourmet sandwich shop will follow an "oven-warming" event that is set to take place on Monday.
Over 100 Million Now Receiving Federal Welfare
BY DANIEL HALPER - The WeeklyStandard.com
"The federal government administers nearly 80 different overlapping federal means-tested welfare programs," the Senate Budget Committee notes. However, the committee states, the figures used in the chart do not include those who are only benefiting from Social Security and/or Medicare.
Food stamps and Medicaid make up a large--and growing--chunk of the more than 100 million recipients. "Among the major means tested welfare programs, since 2000 Medicaid has increased from 34 million people to 54 million in 2011 and the Supplemental Nutrition Assistance Program (SNAP, or food stamps) from 17 million to 45 million in 2011," says the Senate Budget Committee. "Spending on food stamps alone is projected to reach $800 billion over the next decade."
More Than 100 Million Americans Are On Welfare
By Michael Snyder - EndOfTheAmericanDream.com
There are more Americans dependent on the federal government than ever before in U.S. history. According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare program run by the federal government. Many are enrolled in more than one. That is about a third of the entire population of the country. Sadly, that figure does not even include Social Security or Medicare. Today the federal government runsalmost 80 different "means-tested welfare programs", and almost all of those programs have experienced substantial growth in recent years. Yes, we will always need a "safety net" for those that cannot take care of themselves, but it is absolutely ridiculous that the federal government is financially supporting one-third of all Americans. How much farther do things really need to go before we finally admit that we have become a socialist nation? At the rate we are going, it will not be too long before half the nation is on welfare. Unfortunately, we will likely never get to that point because the gigantic debt that we are currently running up will probably destroy our financial system before that ever happens.
The Dispossessed Majority
Paul Craig Roberts - PaulCraigRoberts.org
The bumper sticker on the beat-up pickup truck read: "Friends don't let friends vote Democrat."
The driver was obviously not affluent. Yet, despite all the news about mega-trillion dollar bankster bailouts, mega-million dollar bonuses for financial crooks, and unimaginable compensation packages for corporate CEOs who have moved middle class jobs out of America, something made the down-and-out pickup truck driver associate with the political party of the super-rich.
As I wondered at this strange alliance of the dirt poor with the mega-rich, I remembered that in 2004 Thomas Frank wondered about how the Republicans had managed to convince the poor to vote against their best interests. Frank's answer, or part of his answer, is that the Republicans use "social issues," such as gay marriage and Janet Jackson's exposed nipple to work up indignation over the threat to moral values posed by liberal Democrats.
The Real Problem With Welfare: It Stopped Helping the Poor
By Jordan Weissmann - TheAtlantic.com
Mitt Romney has a new ad out accusing President Obama of attempting to "gut" welfare reform by letting states hand out cash to families that aren't working. At best, the claim seems to be some serious hyperbole surrounding the small kernel of truth that the administration wants to give states more leeway on how they move families into jobs. But hey, it's the summer, and campaigns need to fill air time, right?
Rather than dwell on this skirmish, let's remember the bigger picture about the current state of our welfare system, as captured in this graph from the Center for Budget and Policy Priorities. Remember how Bill Clinton promised to "end welfare as we know it?" Well, did he ever.
Stockton, California Went Bankrupt. Is Your City Next? What to look for as your burg goes belly up!
Zach Weissmueller - Reason.com
Stockton, California made history in June 2012 when it became the largest U.S. municipality in history to file Chapter 9 bankruptcy. Itwasn't the first Golden State city to do so, and what's happening in out west is spreading to the rest of the country.
Stockton, like many U.S. city governments, spent lavishly throughout the 1990s when the real estate bubble filled public coffers with property tax revenue. Public officials approved big public works projects such as a new arena, a waterfront park and a grand, new city hall building that the city government never had the money to occupy. But even this spending pales in comparison to Stockton's crippling public employee contracts. The city is on the hook for more than $800 million in unfunded liabilities for pensions and other post-employment benefits.
Stockton, California Went Bankrupt. Is Your City Next?
Stockton, California made history in June 2012 when it became the largest U.S. municipality in history to file Chapter 9 bankruptcy. It wasn't the first Golden State city to do so, and what's happening in out west is spreading to the rest of the country.
A Golden State train wreck
By George F. Will - WashingtonPost.com
PALO ALTO, Calif.
State Sen. Joe Simitian's district office near Stanford's campus is nestled among shops sporting excruciatingly cute names (A Street Bike Named Desire, Mom's the Word maternity wear) intended to make the progressive gentry comfortable with upscale consumption by presenting it as whimsical. This community surely has its share of advanced thinkers who think trains are wonderful because they are not cars (rampant individualism; people going wherever and whenever they want, unsupervised).
NRC suspends nuclear plant licensing
for lack of nuclear waste disposal
BY: DAVID HERRON - Examiner.com
Following a petition filed by 24 environmental groups on June 18 2012, the Nuclear Regulatory Commission (NRC) suspended, yesterday, decisions on at least 19 nuclear reactor licensing decisions. The halt affects nine construction & operating licenses (COLS), eight license renewals, one operating license, and one early site permit. The decision came in response to the landmark Waste Confidence Rule decision of June 8(th) by the U.S. Court of Appeals for the D.C. Circuit.
Stronger, Faster and Smarter, Our Bionic Future Has Arrived
BY MICHAEL A. ROBINSON,
Defense and Technology Specialist, Money Morning Get ready for bionic humans.
They'll be faster, stronger, and much smarter than we are today. They'll wear exoskeletons made of smart materials, complete with onboard computing.
Part of their enhanced IQs may come from implants in their eyes that automatically access the wireless Web.
Not only that, these connected people will be largely free from disease and hunger, too. The human race will have plenty of food, water, and medicine to go around in a world teeming with an estimated 10 billion people by the end of this century.
Hard to believe, I know.
But my source is one of the world's foremost experts on the future of high tech and how it will affect mankind...
This (above article) is no joke...
What is The Singularity?
1993 by Vernor Vinge - Department of Mathematical Sciences, San Diego State University
The acceleration of technological progress has been the central feature of this century. I argue in this paper that we are on the edge of change comparable to the rise of human life on Earth. The precise cause of this change is the imminent creation by technology of entities with greater than human intelligence. There are several means by which science may achieve this breakthrough (and this is another reason for having confidence that the event will occur):
• There may be developed computers that are "awake" and superhumanly intelligent. (To date, there has been much controversy as to whether we can create human equivalence in a machine. But if the answer is "yes, we can", then there is little doubt that beings more intelligent can be constructed shortly thereafter.)
• Large computer networks (and their associated users) may "wake up" as a superhumanly intelligent entity.
• Computer/human interfaces may become so intimate that users may reasonably be considered superhumanly intelligent.
• Biological science may provide means to improve natural human intellect.
What is the Singularity?
Singularity.org
The Singularity is the technological creation of smarter-than-human intelligence. There are several technologies that are often mentioned as heading in this direction. The most commonly mentioned is probably Artificial Intelligence, but there are others: direct brain-computer interfaces, biological augmentation of the brain, genetic engineering, ultra-high-resolution scans of the brain followed by computer emulation. Some of these technologies seem likely to arrive much earlier than the others, but there are nonetheless several independent technologies all heading in the direction of the Singularity – several different technologies which, if they reached a threshold level of sophistication, would enable the creation of smarter-than-human intelligence.
A future that contains smarter-than-human minds is genuinely different in a way that goes beyond the usual visions of a future filled with bigger and better gadgets. Vernor Vinge originally coined the term "Singularity" in observing that, just as our model of physics breaks down when it tries to model the singularity at the center of a black hole, our model of the world breaks down when it tries to model a future that contains entities smarter than human.
Corporate America is surely connected...
The Singularity What is this Singularity?
Is it a science-fiction thing invented by Vernor Vinge?
From: eder@hsvaic.hv.boeing.com (Dani Eder)
Newsgroups: sci.nanotech Subject: Re: The Singularity
Date: 23 May 94 03:51:48 GMT Organization: Boeing AI Center, Huntsville, AL
Human history has been characterized by an accelerating rate of technological progress. It is caused by a positive feedback loop. A new technology, such as agriculture, allows an increase in population. A larger population has more brains at work, so the next technology is developed or discovered more quickly. In more recent times, larger numbers of people are liberated from peasant-level agriculture into professions that entail more education. So not only are there more brains to think, but those brains have more knowledge to work with, and more time to spend on coming up with new ideas.
We are still in the transition from mostly peasant-level agriculture (most of the world's population is in un-developed countries), but the fraction of the world considered 'developed' is constantly expanding. So we expect the rate of technological progress to continue to accelerate because there are more and more scientists and engineers at work.
What Is The Singularity And Will You Live To See It?
By Annalee Newitz - iO9.com
If you read any science fiction or futurism, you've probably heard people using the term "singularity" to describe the world of tomorrow. But what exactly does it mean, and where does the idea come from? We answer in today's backgrounder.
What is the singularity?
The term singularity describes the moment when a civilization changes so much that its rules and technologies are incomprehensible to previous generations. Think of it as a point-of-no-return in history.
White House considers executive action to address cybersecurity
By Carlo Muñoz - TheHill.com
The Obama administration is considering exercising the White House's executive authority to impose cybersecurity mandates after lawmakers failed to adopt legislation to implement those measures, a top U.S. counterterrorism official said on Tuesday.
Those options include President Obama possibly introducing several cybersecurity measures via presidential executive orders, according to White House chief counterterrorism adviser John Brennan.
Why the Man Who Invented the Web Isn't Rich
By Robert Wright - TheAtlantic.com
I hadn't realized that the World Wide Web turned 21 this week until I saw the nice birthday card that Megan Garber sent it yesterday. And it's a good thing I did--because otherwise I would have missed a fabulous recycling opportunity!
In the summer of 2001, shortly before the 10th birthday of the web, I did a Time Magazine profile of its creator, Tim Berners-Lee. Re-reading it just now drove home how young the web was back then, and how much it's changed. (Berners-Lee was critical of the state of the web when I interviewed him, but I think his criticism has lost some of its force.) The profile also reminded me what a thoroughly decent and public-spirited guy Tim Berners-Lee is. Sometimes people who do great things turn out to be jerks, but he definitely isn't such a case. One other thing Tim Berners-Lee isn't is fabulously wealthy--and finding out why he hadn't taken the road to riches (and that he almost had) was for me one of the more interesting outcomes of this reporting project.
Beware, Tech Abandoners.
People Without Facebook Accounts Are 'Suspicious.'
By Kashmir Hill, Forbes Staff
The term "Crackberry" seems silly today — and not just because consumers OD'ed on Blackberry and moved on to iDealers. The term arose in an earlier "aughts" time when Blackberry dominated the smartphone market and lawyers and execs were nearly the only ones who had them, due to their need to be able to respond to email immediately. Things have changed. Now we all need to be able to respond to email immediately. And to tweet. And to instantly share our photos onFacebook. We're all addicted to technology now, and not just to the Blackberry. We're "addicted" to our iPhones, and Facebook, and Twitter, and Android, and Pinterest, and iPads, and Word with Friends, and fill-in-the-blank-with-your-digital-dope-of-choice.
9 Reasons Facebook Will Crash
By Bristol Voss - Minyanville.com
MINYANVILLE ORIGINAL In order not to feel helpless watching the Facebook (FB) train wreck, we decided to seek guidance from the company's 10-Q. There turned out to be little consolation in the document. In short, it ain't pretty. You don't even need to read between the lines since the bad news is literally spelled out.
1. The stock investors hold, now at $20.72, is all there is. There will be no dividend. Since it's trading at about 30x next year's estimated earnings, it's hard to argue that it's undervalued. Both Apple and Google trade at approximately 12x expected earnings. From the 10-Q:
"[Y]ou may only receive a return on your investment in our Class A common stock if the trading price of our Class A common stock increases.
"We do not intend to pay dividends for the foreseeable future."
From Occupying Wall Street To "Dying For Work"?
Submitted by Tyler Durden - ZeroHedge.com
Imagine you are driving to work this morning in Las Vegas (yes, you are one of the select few locals who has a job that does not involve relying on the strip's ever declining gambling revenues orflipping a house to John Paulson in the second, and far shorter, coming of the regional housing bubble, with poppage imminent), and you observe what appears to be a man who hung himself below a billboard saying "Dying for Work."
Confused, you continue, only to drive by another billboard with what seem to be a man hanging off, this one saying "Hope you're happy Wall St."
India-Style Blackout Could Strike The U.S.
By Aaron Jagdfeld, guest post - Forbes.com
More people in the United States were affected by power outages last year than at any time in the industrial age. Yet what we faced during the past year pales in comparison to the largest electrical outage in world history that knocked out power to nearly 700 million people last week in India, crippling their economy.
The U.S. is one of the most developed nations in the world. Our day-to-day interactions are guided by technologies and innovations that rely upon the power grid. But as we continue to develop technological mastery, our power grid is aging and fragile, and its susceptibility to outages means our way of life could break down in an instant.
Mexico destroys 8 mn chickens amid bird flu outbreak
(AFP) – Google.com
MEXICO CITY — Eight million chickens have so far been slaughtered in Mexico and 66 million more were vaccinated in a bid to contain a bird flu outbreak in the west of the country, authorities said.
The agriculture ministry said in a statement that during the vaccination process in the Los Altos region of Jalisco state, diseased chickens were identified, leading to the destruction of the flu-carrying fowl.
Food safety officials say the outbreak, which was first detected on June 20, is confined to Los Altos, which is an egg-producing area. Inspections in other parts of the country have not turned up any signs of the disease.
Meet the Guy Whose Tech
Will Transform Solar Power...and He's Giving it Away
By David DiSalvo, Contributor - Forbes.com
Steve Nelson is an ordinary guy with an extraordinary vision. You've probably never heard of him or his company, Zenman Energy, but Nelson is the sort of regular guy whose name suddenly starts popping up in headlines one day, because his ideas have the potential to permanently change the energy game.
What makes Nelson noteworthy, beyond the solar power technology he's invented, is that unlike most everyone else trying to score in this market, Nelson's vision for success includes giving away the technology for others to replicate and improve upon. You might call it "open source solar," and if it catches on, Nelson will be the guy credited with its success, even though he'll be none the wealthier for it.
Making Scotland the Green Energy Capital of Europe -
Interview with Alex Salmond
By James Stafford - OilPrice.com
We were fortunate enough to have some time with Scotland's First Minister Alex Salmond where we discussed a broad range of topics from Scotland's ambitious renewable energy targets and North Sea oil & gas to Scottish independence and Donald Trump.
In the interview, Alex discusses:
• How Scotland will achieve its ambitious renewable energy targets.
• The impact North Sea oil and gas revenues would have on an independent Scotland.
• How Scotland can become the green energy capital of Europe.
• Donald Trumps recent tantrum over offshore wind energy.
• The impact Independence would have on the Scottish economy.
• Why companies are continuing to invest in Scotland's renewable energy sector.
• Why Scotland would establish an oil fund and how it would be used.
• Why the shale revolution will not affect investment in Scottish renewables.
• The recent partnership between Scotland and Abu Dhabi.
• How Scotland will achieve its ambitious renewable energy targets.
The future of air travel: Nasa and Boeing
test radical triangular plane (just don't expect a window seat)
By EDDIE WRENN - DailyMailOnline.co.uk
Nasa has successfully demonstrated a working prototype of the 'plane of the future' - although it may be a step back for travellers who love a window seat.
The British-built plane is a radical re-design of the traditional 'fixed-wing' plane shape which has seen us through 50 years of passenger air-travel, with NASA and Boeing saying we have reached the limits in terms of speed and fuel efficiency with current models.
Nasa yesterday took a scale replica of the plane for a 'test fly', and hopes the plane will become the next universally adopted design within the next two decades.
The X-48C is a 'hybrid wing-body' plane, which offers greater internal volume for passengers and cargo, and the triangle-shaped plane, reminiscent of spy planes, cuts through the air more efficiently.
Getting around a dead-end in Syria
By Editorial Board, The Post's View - WashingtonPost.com
THE DEFECTION of Syria's prime minister to Jordan on Monday prompted yet another White House declaration that the regime of Bashar al-Assad is "crumbling." While we hope that this is the case, it seems more likely that the administration's prediction will prove as premature as its previous announcements of Mr. Assad's imminent downfall, dating back a year. The grim reality is that the regime and the brutal war it is waging in Syria's cities is likely to go on and on — unless the United States abandons its policy of passivity.
Experts on Syria say that Mr. Assad's power structure is not so much crumbling as fragmenting along ethnic lines. What remains is a hard core of military units and their leaders, drawn from the minority Alawite sect. The defecting prime minister, like almost all of the 40 other senior government and military officials who have switched sides, is from the majority Sunni population. Other ethnic groups in Syria are going their own ways: The Kurds in the northeast of the country have taken over their own territory and hope to establish an autonomous region like that in Iraq.
Israel and Egypt's Military Benefit from the Sinai Attacks
By John Boering - The PPJ Gazette
Unidentified gunmen attacked the Sinai Peninsula border of Egypt and Israel last Sunday. Sixteen Egyptian soldiers were killed; the attackers were stopped by Israeli fire. The crisis is forcing Egypt to set policy with Israel as the 1979 peace treaty has been compromised. Additionally, the struggle for power in Egypt's new government is being tested.
Egypt's military responded to the Sinai attack today by striking targets near the border to crackdown on Islamic extremists who are being blamed for the attack. The attack benefits Israel and Egypt's military politicians, the Supreme Council of the Armed Forces (SCAF).
Euro to Beat Dollar? Draghi's Genius
BY AXEL G MERK - FinancialSense.com
Investors have not woken up to it, but last week may have been a game changer. European Central Bank (ECB) President Draghi took tail risks out of the Eurozone, while at the same time forcing closer fiscal integration. He did it all while keeping the ECB out of some political minefields. It's pure genius. The initial market reaction suggested he might have lost a battle, not realizing that he is winning the war.
Dismayed by a dysfunctional process caused by a lack of leadership and the increasing risk of some of the worst case scenarios playing out, we have been staying away from the euro in our hard currency strategy. As of late last week, those dynamics changed: we are giving the euro another chance, not only because of substantial short covering potential, but also because Draghi's "whatever it takes" approach might bring about seismic changes in how European integration, fiscal and monetary policy move forward.
Has The Perfect Moment To Kill The Dollar Arrived?
By Brandon Smith - Alt-market.com
The idea of "collapse", social and financial, comes with an incredible array of hypothetical consequences ranging from public dissent and martial law, to the complete disintegration of infrastructure and the devolution of mankind into a swarm of mindless arm chewing cannibals. In an age of television nirvana and cinema overload, I have found that the collective unconscious of our culture has now defined what collapse is based only on the most narrow of extremes. If they aren't being hunted down by machete wielding looters or swastika wearing jackboots, then the average American dupe figures that the country is not in much danger. Hollywood fantasy has blinded us to the tangible crises at our doorstep.
Four reasons to worry about municipal bonds
By John Wasik
CHICAGO | Mon Aug 6, 2012 2:18pm EDT
(Reuters) - Given the recent scandal over Libor pricing, it's easy to think that municipal bond markets may be the next to be outed for pricing irregularities.
While you shouldn't worry about the majority of high-rated municipal bonds defaulting, there are some serious issues about opaque pricing and dealer profits in this nearly $4 trillion market. If you're in the game, you may not be getting the best deal.
Bernanke boards the happiness bandwagon
By Nin-Hai Tseng - Forbes.com
Our economy is growing, yet many Americans are still struggling. Fed chief Ben Bernanke says we need a better way to measure our well-being.
FORTUNE – Whenever we try to assess the health of the economy, we usually go by data sets that look at large groups, such as Gross Domestic Product, or GDP. But in recent years, a growing number of economists have suggested that GDP might not capture entirely how individuals are doing or what makes their lives better. They say they may need to develop new measures that focus on "well-being" or happiness.
Geithner, Treasury drove cutoff
of non-union Delphi workers' pensions
By Matthew Boyle - DailyCaller.com
Emails obtained by The Daily Caller show that the U.S. Treasury Department, led by Timothy Geithner, was the driving force behind terminating the pensions of 20,000 salaried retirees at the Delphi auto parts manufacturing company.
The move, made in 2009 while the Obama administration implemented its auto bailout plan, appears to have been made solely because those retirees were not members of labor unions.
Fed should buy as many bonds as necessary: Rosengren
By Mark Felsenthal
WASHINGTON | Tue Aug 7, 2012 6:58pm EDT
(Reuters) - A top Federal Reserve official said on Tuesday the Federal Reserve should launch another bond-buying program of whatever size and duration is necessary to get the economy back on its feet, signaling support from some U.S. policymakers for aggressive steps to boost the flagging recovery.
Boston Fed Bank President Eric Rosengren said in interviews with the New York Times and CNBC that the Fed should start buying Treasury and mortgage-backed securities and continue doing so until the economy was back to full strength.
Are regulators doing enough to rein in bank money laundering?
By Danielle Douglas and Joby Warrick - WashingtonPost.com
Regulators are catching flak for not acting sooner to stop banks that helped Iran flout U.S. sanctions. This week, the state of New York said London-based Standard Chartered Bankconcealed $250 billion in Iranian transactions, violations that persisted for nearly a decade.
A number of international banks, including Lloyds, Barclays and Credit Suisse engaged in similar behaviors, but it took years before regulators put their foot down. State and federal agencies routinely audit banks to ensure compliance with anti-money- laundering rules, but institutions continue to skirt the law.
Are High Frequency Traders Rigging the Stock Market?
By Doug Hornig - CaseyResearch.com
High-frequency traders (HFT) have no interest in any company whose stock they're trading.
They don't care about its earnings, what sector it's in, nor who's on the board of directors.
They neither know nor care how it fares in technical analysis, and they don't give a damn about its long-term prospects.
Likely as not, they don't even know its name.
At the end of every day, after trading tens of millions of shares, they don't want a single share of stock on their books at all.
Another reason to fear the fiscal cliff
By Charles S. Konigsberg @CNNMoney
If Democrats and Republicans fail to figure out a way to avert the fiscal cliff before the end of this year, they are fooling themselves if they think they'll be able to clean up the mess easily when Congress gets back in January.
Some may assume that it will be a simple matter to roll back the tax hikes and un-wind the spending cuts before significant damage is done to the economy. They are wrong.
Obama signs bill requiring White House to detail fiscal cliff
By Erik Wasson - TheHill.com
President Obama on Tuesday signed a law requiring the White House budget office to reveal exactly how automatic budget cuts looming in January 2013 will be carried out.
The Sequestration Transparency Act was passed by the House in July by a 414-2 vote. The Senate approved it unanimously later in the month.
Under last August's debt-ceiling deal, $109 billion in automatic spending cuts are to hit in January to punish politicians for failing to come up with a bipartisan deficit-reduction plan last year as part of the supercommittee process.
Money data hint at a global recovery Global slump risk falls as world money rebounds The first green shoots have begun to emerge in money supply data from across the world, raising hopes of a tentative global recovery by later this year.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Data collected by Simon Ward at Henderson Global Investors show that a key gauge of global money – six-month real M1 – has picked up at last after a drastic slowdown over the early spring.
The combined growth rate for the G7 economies and E7 emerging powers levelled out at 1.6pc in May and rebounded at 2.5pc in June, though China and India are still contracting.
Is Silver Manipulation Case Being Dropped?
By Greg Hunter's USAWatchdog.com
Lots of news out this week about the silver manipulation case being dropped by the Commodity Futures Trading Commission (CFTC) with zero action. The first of several stories was put out by the Financial Times on Monday. FT.com reported, "A four-year investigation into the possible manipulation of the silver market looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation. The Commodity Futures Trading Commission first announced that it was investigating "complaints of misconduct in the silver market" in September 2008, following a barrage of allegations of manipulation from a group of precious metals investors. In 2010, Bart Chilton, a CFTC commissioner, said that he believed there had been "fraudulent efforts" to "deviously control" the silver price. But after taking advice from two external consultancies, the first of which found irregularities on certain trading dates that it believed deserved more analysis, CFTC staff do not have sufficient evidence to bring a case, according to the people familiar with the situation. The agency's five commissioners have not yet formally determined the outcome of the investigation, leaving the possibility that staff could be instructed to dig deeper. A CFTC spokesman said: "The investigation has not reached its conclusion." He declined further comment."
Eric Sprott Interview:
Silver is Suppressed or it Would be $150 an ounce
Eric Sprott has $10 billion under management, and it's no secret Mr. Sprott is a long term bull on physical gold and silver. He says, "I can make a compelling case the price has been suppressed." If it wasn't, Sprott says, "Gold would be $2,500, and if the ratio was 15 to 1, the price of silver would be $150 an ounce." Mr. Sprott also says, "The economy is already taking a cliff dive and that is before we hit the cliff. . . . It's hard to imagine anyone being optimistic going forward here." If there is war in the Middle East, Sprott says, "Oil would go crazy, gold would go crazy, anything physically real would be in demand." Greg Hunter goes One-on-One with Eric Sprott of Sprott Asset Management.
Spain Refuses To Be Bailed Out If There Are New Conditions
Submitted by Tyler Durden - ZeroHedge.com
And so the fly in the ointment arrives as beggars are not only choosers but have completely lost their minds. As we explained very, very clearly over the weekend in "In Order To Be Saved, Spain And Italy Must First Be Destroyed", the market, courtesy of its primary function of discounting being completely and utter distorted and destroyed thanks to central planning, "priced in" the fact that Spain will be bailed out in the only possible way: by making a Spanish bailout next to impossible, sending its bonds so much higher that Rajoy could not possibly see any need in demanding a bailout (something which as Art Cashin explained further today will very much infuriate Obama). Well, as often happens, we may have been ahead of the market by a few days. And reality as well: because as of minutes ago Spain's PM confirmed precisely what we warned against - that by frontrunning Spain's destruction, and hence rescue, it has doomed Spain to a fate far worse.
S&P revises Greece's outlook to negative
(Reuters) - Ratings agency Standard & Poor's on Tuesday revised Greece's outlook to negative, saying the debt-ridden euro zone country could need more help from its international creditors.
"Following delays in implementing budgetary consolidation measures and a worsening Greek economy, we believe Greece is likely to require additional financing for 2012 under the EU/International Monetary Fund (IMF) program," S&P said in a statement.
While All Eyes Are on Europe, Japan Circles a Black Hole
By Charles Hugh Smith - OfTwoMinds.com
While all eyes are on the absurdist tragicomedy playing out in Europe, Japan is quietly circling a financial black hole as its export economy is destroyed by its strong currency and the global recession.
There is a terrible irony in export-dependent nations being viewed as "safe havens." Their safe haven status pushes their currencies higher, which then crushes their export sector, which then weakens their entire economy and stability, undermining the very factors that created their safe haven status.
Big Bazooka Theory and Practice
By Bill Bonner - DailyReckoning.com
08/07/12 Paris, France – This message is one of a series. It began when Mario Draghi, former Goldman man and now head of the European Central Bank, promised to do "whatever it takes" to save Euroland.
The issue on the table: whatever does it take to bring a real recovery?
First, whatever it takes, Mario Draghi didn't seem to have it. Or maybe he did. The situation in Europe is so complicated it's hard to tell. So, investors have been fearful one day and cheerful the next. At the beginning of last week they thought all was lost. Then, by the end of the week, stocks were rallying again. The Dow rose more than 200 points on Friday. Yesterday, it still had some forward momentum…going up another 21 points.
Gold And Grand Theft Economics
Submitted by Tyler Durden - ZeroHedge.com
The tectonic battle between a market trying to deflate its debts and the central banks attempting to reflate the impaired assets to maintain the status quo is becoming increasingly violent. In a brief clip, Santiago Capital's Brent Johnson explains the fallacy of fiat money, the dynamics of the velocity of money in a 'troubled' economy, the 'we are going to give the banks a lot of money' plans, and the inevitable 'there's no more money' moment when the inflationary and deflationary tremors come unstuck and become shock-waves.There will be no warning, no bell-ringing at the onset of the end of the monetary system itself as he notes the slate of Stability & Growth Pacts (EU) and The Recovery and Reinvestment Act (US) will inevitably be seen as the greatest unauthorized transfer of wealth in history - and being exposed to gold stored outside of the banking system, there is a protected route as the world staggers from tremor to tremor.
US regulators have Britain's
'wild west' bank culture in their sights Labour MP fears US regulators may targeting 'wild west' culture in City to grab business for New York
By Jill Treanor - Guardian.co.uk
The Labour MP John Mann, an outspoken member of the Treasury select committee, has called for a government inquiry into money laundering, and outlined fears that US regulators have British banks in their sights as they try to shift business from London to New York.
The allegations against Standard Chartered, made on Monday by the little-known New York state department of financial services, also prompted calls by the investment advisory agency Pirc for discussions with top bankers about the industry's ethics.
The Real Story Behind the Knight Capital Trading Fiasco
BY SHAH GILANI, Capital Wave Strategist, Money Morning
Oh, you are going to love this.
That whole Knight Capital fiasco last Wednesday, when a software glitch caused them to flood the market with thousands of unintended orders, it ain't exactly what you think it is.
Sure, they tripped over themselves in the dark pool where they were trying to compete.
But somewhat interestingly (okay, a LOT interestingly), the competitor that drove them to "upgrade" their trading software, which malfunctioned and caused them to actually bid-up share prices erroneously and then buy them at inflated prices, was none other than, wait for it...
Knight Blowup Shows How High-Speed Traders Outrace Rules
By the Editors - Bloomberg.com
The U.S. has the most sophisticated financial markets in the world, yet they can unaccountably spin out of control at a moment's notice.
The latest case involves Knight Capital Group Inc. (KCG), a securities-trading company inJersey City, New Jersey, that was laid low by one of its inadequately tested computer-trading programs. In less than an hour on Aug. 1, the program entered incorrect bids for about 150 stocks into the interconnected electronic marketplace. Computer programs at other firms sniffed out the errors and traded against Knight. By the end of the day, the company was out $440 million, forcing it to seek outside financing to survive.
Dodd-Frank helps big banks at expense of small ones
By C. Boyden Gray - WashingtonTimes.com
Two years after President Obama signed the Dodd-Frank Wall StreetReform Act, it is impossible to ignore the fact that the new regulatory regime primarily helps the big banks while placing its heaviest burdens on community banks and other small financial institutions.
The proof is in the pudding. As the Wall Street Journal reported earlier this year, since the 2008 financial crisis, "too-big-to-fail banks got even bigger in terms of both assets and deposits. They also seem to be reaping the lion's share of what business-lending growth there is in the U.S.," particularly in the second half of 2011. That trend points in a dangerous direction: "Less lending among smaller banks signals continued tough times for small businesses, typically an important contributor to economic growth," the Journal's David Reilly explained.
Citi may take $6 billion charge on MSSB valuation: Barclays
(Reuters) - Citigroup Inc (C.N) may have to a take a charge of almost $6 billion in the current quarter on a markdown of its valuation of the retail brokerage business it owns with Morgan Stanley (MS.N), Barclays Capital said.
The third-largest U.S. bank said last month that Morgan Stanley estimates the business, known as Morgan Stanley Smith Barney, is worth less than half as much Citi believes it is.
The disagreement came as Morgan Stanley tried to buy another 14 percent of the joint venture, beyond the 51 percent it owns.
Financial crisis: 25 people
at the heart of the meltdown – where are they now? In 2009 the Guardian identified 25 people – bankers, economists, central bankers and politicians – whose actions had led the world into the worst economic turmoil since the Great Depression. On the fifth anniversary of the credit crunch, what are they doing?
By Rupert Neate - Guardian.co.uk
Central bankers
Alan Greenspan, chairman US Federal Reserve 1987-2006
A disciple of libertarian icon Ayn Rand, Greenspan became chairman of the Fed just in time to save the global economy from the 1987 stock market crash from becoming a full-blown disaster. He went on preside over the boom years of the 90s and lead the US economy through the aftermath of the September 11 attacks and was widely referred to as an "oracle" and "the maestro".
But Greenspan's super-low interest rates and consistent opposition to regulation of the multitrillion-dollar derivatives market are now widely blamed for causing the credit crisis. Under Greenspan's tenure the derivatives market went from barely registering to a $500 trillion industry, despite billionaire investor Warren Buffett warning that they were "financial weapons of mass destruction".
The 11 Graphs That Allegedly Prove That the West Is Doomed
By Derek Thompson - TheAtlantic.com
Should Americans just embrace the idea that fast recoveries are a thing of the past?
Economy-watchers have basically spent the last three years coming up with new and more metaphorically-illuminating ways of saying the same thing, over and over: "Things are getting better, but too slowly." In fact, this is what they've been saying for much of the last 30 years. Between 1950 and 1990, private GDP growth in the two years after a recession averaged between 5% and 6%. But the last three recoveries, it averaged only 2.5%.
Sliding Toward a Recession
By Bill Bonner - DailyReckoning.com
08/07/12 Paris, France – "Déjà vu" is a French expression that means…well, you know what it means.
For our purposes, we will use it to refer to the slumpy economy…and to the feds' response. We've see it all before.
"Dans la merde" is another French expression…which refers to where you end up when the feds' undertake to fix it.
But the Dow shot up 217 points last Friday. Gold went up $18. How to explain it?
With Europe on the brink of a blow-up (where it's been for years)…China's economy slowing down dangerously…and much of the rest of the world already in recession you'd expect investors would think twice before buying more stocks. After all, what are stocks? They're shares in real businesses. When those businesses do well, the shareholders should do well. But businesses don't usually do well in a recession.
Standard Chartered and Iran Banking for the bad guys
By 'Schumpeter' - The Economist.com
IN A bombshell statement New York's Department of Financial Services added Standard Chartered, a British bank, to the rank of financial institutions under siege, calling it a"rogue institution". It accuses Standard Chartered of executing 60,000 secret transactions worth $250 billion for Iranian customers in exchange for "hundreds of millions of dollars" in fees. In a footnote the regulator also says that there is evidence of similar "schemes" with other countries subject to American sanctions, including Libya, Myanmar and Sudan.
Keiser Report: Crooks, Crime, Chaos (E324)
In this episode, Max Keiser and Stacy Herbert discuss jihadi bots gone wild while the President of the United States was pumping and dumping Facebook stock. Max and Stacy also discuss what the first ever Predator droned American may mean to Goldman Sachs' bottom line as the banks begins collateralizing crime and recidivism. In the second half of the show, Max Keiser interviews burning banks artist Alex Schaefer about his recent arrest for chalking the words, 'crooks,' 'crime' and 'chaos' in front of a Chase Bank in Downtown Los Angeles. The eight hours in jail means that the artist Alex Schaefer has done more time than any bankster since the financial crisis began.
Bipartisan Internet sales tax bill
would hurt small businesses, critic says
By Betsi Fores - DailyCaller.com
Wyoming Republican Sen. Mike Enzi calls it the "most overlooked tax loophole," but critics say mandating Internet sales tax collection would place a significant burden on small businesses.
Several bills pending in Congress to close the so-called "loophole" would set aside the Quill standard that the Supreme Court established in 1992. The ruling established the precedent that only companies with a physical presence in a state need to collect online sales tax for purchases in that state.
Reversing the Negative View of Reverse Mortgages
By Alicia Munnell - SmartMoney.com
The Consumer Financial Protection Bureau (CFPB), an agency created under the Dodd-Frank legislation (and whose creation I applaud), recently released a report on reverse mortgages. The report is quite negative — in my view, excessively negative — and the press summaries omit many of the nuances of the original document, which makes it sound even more negative than it is. Reverse mortgages, which allow homeowners to tap their home equity, are instruments that many Americans are going to need in order to have any chance of a decent retirement. To the extent that flaws exist in the reverse mortgage market, they need to be fixed. But a future without reverse mortgages would be a very grim one indeed. (Full disclosure: I am an investor in and a member of the Board of Directors of Longbridge, a start-up company that has been formed to provide reverse mortgages in a socially responsible fashion.)
U.S. Food Prices 2013:
Jeremy Grantham Warns of Coming "Dystopia"
BY BEN GERSTEN, Associate Editor, Money Morning
The U.S. Department of Agriculture (USDA) on July 25 issued a report warning every American that U.S. food prices in 2013 will rise 3%-4% -- but that jump is just the start of a frightening long-term trend.
The warm weather in the winter months gave farmers hope for a great crop production this year, but a crippling U.S. drought now covers around 60% of the continental United States. The water shortage has killed crops, pushed corn prices higher, and will eventually make its way to your local store shelves.
Forget zombies: Phantom jobs are really scary
By John Crudele - NYPost.com
I'm still waiting for a reasonable explanation from the Labor Department on why it decided that so many brand-new businesses were suddenly creating so many new jobs in July.
If you missed it, I analyzed Labor's latest employment numbers last Saturday and found that its total of 163,000 new jobs for July included 52,000 phantom jobs.
The phantom jobs, contained under Labor's somewhat arcane and usually overlooked Birth/Death Model, are nothing new. The Birth/Death Model allows Washington to guess at the number of jobs created or lost in the crevices of society where they are hard to prove.
Michigan to lay off 400 unemployment workers
By Tami Luhby @CNNMoney
NEW YORK (CNNMoney) -- Many jobless claims workers in the state of Michigan will soon be filing for unemployment themselves.
About 400 state workers who process unemployment claims are losing their jobs thanks to Michigan's improving economy.
The state had beefed up its staff with more than 175 temporary workers in early 2009, when weekly jobless claims topped 500,000 and the unemployment rate was on its way to a 14.2% peak.
Why Are Young People Ditching Cars for Smartphones? For cash-strapped twenty-somethings, staying connected may be worth more than a set of wheels.
By Jordan Weissmann - TheAtlantic.com
Youth culture was once car culture. Teens cruised their Thunderbirds to the local drive-in, Springsteen fantasized about racing down Thunder Road, and Ferris Bueller staged a jailbreak from the 'burbs in a red Ferrari. Cars were Friday night. Cars were Hollywood.
Yet these days, they can't even compete with an iPhone -- or so car makers, and the people who analyze them for a living, seem to fear. As Bloomberg reported this morning, many in the auto industry "are concerned that financially pressed young people who connect online instead of in person could hold down peak demand by 2 million units each year." In other words, Generation Y may be happy to give up their wheels as long as they have the web. And in the long term, that could mean Americans will buy just 15 million cars and trucks each year, instead of around 17 million.*
Government-Sponsored Poverty
By Jeffrey Tucker - DailyReckoning.com
08/07/12 Auburn, Alabama – Growing up in the Cold War, we tended to look at Russia as a nightmare slave society that was utterly and completely foreign to anything Americans knew or could possibly know, absent some kind of invasion.
If I were to summarize the American propaganda message of the time it would be this: We are free, they are not, and that's why we are rich and they are poor. And, man, did they look poor to our eyes. I could never understand it: How the heck does a once-great people put up with a government that is so obviously and apparently driving the whole population down, year after year?
For Unpaid College Loans, Feds Dock Social Security More retirees are falling behind on student debt, and Uncle Sam is coming after their benefits.
By ANNAMARIA ANDRIOTIS - SmartMoney.com
It's no secret that falling behind on student loan payments can squash a borrower's hopes of building savings, buying a home or even finding work. Now, thousands of retirees are learning that defaulting on student-debt can threaten something that used to be untouchable: their Social Security benefits.
According to government data, compiled by the Treasury Department at the request of SmartMoney.com, the federal government is withholding money from a rapidly growing number of Social Security recipients who have fallen behind on federal student loans. From January through August 6, the government reduced the size of roughly 115,000 retirees' Social Security checks on those grounds. That's nearly double the pace of the department's enforcement in 2011; it's up from around 60,000 cases in all of 2007 and just 6 cases in 2000.
Student Debt: What the Fed Report Misses
By AnnaMaria Andriotis - SmartMoney.com
A Federal Reserve report released Tuesday shows Americans are on the hook for $471 billion in student loans. If only the true number were that small.
As college tuition continues to rise, students and their parents have been signing up for federal student loans at a rapid pace. By the end of September, borrowers are expected to owe a whopping $840.5 billion in federal student loans, according to an analysis of federal budget data by FinAid.org. That's up 10% from a year prior. Tack on capitalizing interest—most borrowers don't start paying back these loans right away and in most cases interest continues to accrue—and the figure balloons even higher.
Senators call on China
to stop producing fake US driver's licenses
By Pete Kasperowicz - TheHill.com
Four senators have called on China's U.S. ambassador to crack down on Chinese companies that are producing fake U.S. driver's licenses and other documents.
The letter to Ambassador Zhang Yesui from Sens. Mark Kirk (R-Ill.), Dick Durbin (D-Ill.), Chuck Grassley (R-Iowa) and Tom Harkin (D-Iowa) follows a June USA Today article that said production of these fake documents is growing. The article also said the companies are making it easy for people to order fake documents online.
Gas Prices to Rise Along West Coast
after Fire at Chevron's California Refinery
By James Burgess - OilPrice.com
Yesterday at around 6.00pm a leak was discovered by workers at Chevrons large oil refinery in Richmond, California. The leak grew in size as workers were evacuated from the site.
Ryan Lackay, a 45-year-old employee at a chemical plant next door to the refinery, said that he saw "what looked like a lot of steam coming out of Chevron, way more than usual. I thought they must have blown a boiler. And then all of a sudden it just went whoosh, it ignited."
Dead Crops, Extreme Drought And Endless Wildfires
Are Now The New Normal In America
By Michael Snyder - TheEconomicCollapseBlog.com
As you read this, the United States is experiencing the worst drought it has seen since the Dust Bowl days of the 1930s. As you read this, nearly half of all corn crops in the United States are in "poor" or "very poor" condition. As you read this, 38 major wildfires are ripping across the central and western United States. The brutal wildfires in Oklahoma have been so bad that they have made national headlines. The price of corn has hit a brand new record high this summer and so has the price of soybeans. More than half of all the counties in this country have been declared to be "natural disaster areas" by the U.S. Department of Agriculture at this point. Things are so bad for ranchers that the CEO of Smithfield Foods is projecting that meat prices will rise by "significant double digits" in the months ahead. Sadly, this drought is projected to continue throughout August and into September. As you will read about below, some meteorologists are even openly postulating that there may not be enough moisture to avoid another drought next year. Yes, things are really bad this year, but when you step back and take a look at the broader picture they become truly frightening.
Agenda 21 Cutting Off Electricity To US Cities!
In Austin Texas where I live the city council has already shut down several "city" or citizen owned power plants and our electricity bills have gone up 100%+ in the last few years. Now, they want to cut at least 33% more of our power in the name of saving the earth-- a foreign army could not do this much harm. This is all about power and billions of dollars, how you ask? Select power plants are given waivers and get to stay open; and with their competition shut down, they can charge more for less. This is a pure criminal oppression run by mega corps and the politician whores they buy. It's a giant criminal robbery hiding in plain view!
Chicago to Build $3 Billion Coal Gasification Plant
By Charles Kennedy - OilPrice.com
The Chicago Clean Energy project is a gasification plant which will produce synthetic natural gas from coal and petroleum coke. The facility will cost about $3 billion and is estimated to create more than $10 billion in economic output for the state of Illinois, 2,000 new jobs, and $1.25 billion in tax revenues.
The natural gas produced will equate to about five percent of Illinois' annual demand, and provide a fuel source to be used in power plants which is 99 percent cleaner than that used in conventional power plants.
Sorry…Facebook (Nasdaq: FB) is Still Only Worth $7.50 a Share
BY KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning
The technorati took me to task. So did Wall Street.
They were agitated by an article I wrote in May explaining why the world's most hotly anticipated IPO, Facebook (Nasdaq:FB), was worth a mere $7.50 a share at best.
"Out of touch," one of the critics said. A "luddite" charged another.
"Doesn't grasp the significance of so many users," one Wall Street insider opined--who happened not coincidentally to work for one of Facebook's investment bankers.
Since then the social media darling has fallen another 31% to nearly $22 a share. Ten weeks later, Team Hoodie hasn't done much to merit an upgrade either.
Where the Tea Party is right, and wrong, about tech policy
By Derrick Harris - WashingtonPost.com
It must be difficult to be a member of the Tea Party, having to balance the desire for more rights for everyone — including corporations — with less government to enforce those rights. A recent Heritage Foundation event featuring Sen. Rand Paul (R-KY), highlights the movement's dichotomy. Here's where the Tea Party — or Paul, at least — gets it right and wrong on technology policy. On copyright
Paul seems to understand the problems surrounding copyright enforcement online, right down to his reasons for opposing SOPA. It wasn't so much what SOPA was trying to do in terms of shutting down pirate sites or forcing companies such as Google to act in some cases, as much as it was about the lack of due process in making these things happen. "There almost needs to be a trial …" he said. "It shouldn't be just one person complaining to another website and all of a sudden the web site is shut down."
Govt May Now Collect, Catalog,
and Store All Private Information
by Joe Wolverton, II - TheNewAmerican.com
Imagine that the U.S. government had the power to scour the reams of public records and collect and collate every bit of personal information about every citizen of this country. Now imagine that any of the various intelligence and security agencies within the government could combine that data with any other information about a person that has been posted to a social media website or compiled by one of the many data aggregating companies that keep tabs on all of us. Finally, imagine that all this data could be passed among these agencies and that the ability of anyone inside or outside the government to challenge this surveillance was all but eliminated.
Sadly, this is not the description of some fictitious dystopian future; this is the factual description of present-day America and it's about to get much worse.
US Government Proposes Law
Making It Illegal For Them To Kill You
by Simon Black of Sovereign Man blog - ZeroHedge.com
Last Friday, US Congressman Dennis Kucinich introduced HR 6357, a bill which aims to 'prohibit the extrajudicial killing of United States citizens' by the federal government. In other words, in the Land of the Free, they need to pass a law to prevent the government from indiscriminately murdering its own citizens.
Now if this doesn't give one reason to pause and consider the distortions of liberty that have taken place in western civilization, I don't know what will. Think about it:
Egypt to impose 'full control' over Sinai, says president
Israeli border security under question following fatal gun attack by militants that left at least 15 guards dead
By Harriet Sherwood in Jerusalem and agencies - Guardian.co.uk
Egypt will impose full control over the Sinai, its new president has pledged, as the Israeli government warned of a deteriorating security situation after gunmen killed around 15 Egyptian border guards and hijacked armoured vehicles to launch an attack across the border inIsrael.
Mohamed Morsi said: "Those who carried out this crime will pay dearly." In a speech on Egyptian state television, he added: "Clear orders have been given to our armed forces and police to chase and arrest those who carried out this assault on our children. The forces will impose full control over these areas of Sinai."
Clinton: It's time to plan for Syria's 'day after'
By Anne Gearan WashingtonPost.com
PRETORIA, South Africa — Secretary of State Hillary Rodham Clinton said Tuesday that the world must plan urgently to prevent sectarian warfare or imported terrorism in Syria after President Bashar al-Assad's regime falls, citing the pace of government defections and the fact that Syrian rebel gains have opened up a safe corridor to Turkey.
Clinton would not predict how long Assad can hold on in the face of what she called an increasingly better-organized and better-equipped rebel force, but she suggested that the United States is accelerating planning for what she called "the day after."
Jalili in Damascus underscores Iran's commitment to Assad
DEBKAfile
Tehran gave Bashar Assad its strongest avowal of support Tuesday, Aug. 7, while heaping threats on the heads of his enemies. Saeed Jalili, head of Iran's Supreme National Security Council, stood alongside the Syrian ruler in Damascus at the end of their talks and vowed not to let Iran's "close partnership with the Syrian leadership to be shaken by the uprising or external foes" or the "axis of resistance (Iran, Syria, Hizballah) be broken in any way." Assad then affirmed his determination to purge Syria of violence and bring his forces to victory.
DEBKAfile: When Iranian and Syrian leaders refer to "external foes," they mean the US, Turkey, Saudi Arabia, Qatar and Israel.
Behind the White House's secret Syria plan
By Chet Nagle - DailyCaller.com
The White House won't keep its own secrets, never mind those of the SEALs, Pentagon, or Israel — especially if leaking secrets helps President Obama look like a tough guy in his uphill re-election campaign.
The latest leak is a gusher, and reveals the Obama administration is secretly aiding the rebels in Syria. Unfortunately, in a replay of what happened in Egypt last year, the State Department still does not recognize that many Syrian rebel leaders are in the Muslim Brotherhood and Al Qaida. Nor does the State Department, which seems to rely on rebel propaganda and breathless mainstream media reports for information about Syria, know what is really happening there. But the truth is being revealed.
Iran: Syria part of 'axis of resistance'
By the CNN Wire Staff
Aleppo, Syria (CNN) -- Tensions spiked in the Middle East on Tuesday as Iran extolled its "axis of resistance" with Syria, and the United States warned of proxy and terror activity.
Saeed Jalili, a top Iranian official meeting with Syrian President Bashar al-Assad, was cited by Syrian state media as saying he will not permit "enemies" to break what he called the "axis of resistance of which Syria is an essential part."
Iran backs Assad in Syria crisis and blames 'warmongering' US Tehran officials go to Damascus over pilgrims affair, and reach out to Turkey, Lebanon and Qatar in diplomatic offensive
By Ian Black and Saeed Kamali Dehghan - Guardian.co.uk
Iran has launched a new campaign to intervene in the Syrian crisis, sending its top officials across the Middle East, blasting US "warmongering" and publicly backing a defiant Bashar al-Assad as the country sinks deeper into war.
Saeed Jalili, Iran's powerful national security adviser, met the Syrian president in Damascus on Tuesday, while Iran's foreign minister urgedTurkey and Qatar to use their influence with Syrian rebels to free 48 kidnapped Iranian pilgrims.
Another Market Breaks -
Tokyo Stock Exchange Halts Derivative Trades
Submitted by Tyler Durden - ZeroHedge.com
Earlier today the Spanish stock exchange was down for nearly 5 hours - the reason is unclear: perhaps as a form of precrime punishment to all those felons who would even consider selling stocks in the future. Now, the SkyNet self-awareness wave goes East just as Japan opens and takes down all Tokyo derivative trading:
• Tokyo Stock Exchange Stops Derivative Trades, Cites System Error - BBG
• Tokyo Stock Exchange Group stopped trading of Topix futures, JGB futures and options from around 9:20 a.m. because of a systems error.
• Co. spokesman Naoya Takahashi spoke in phone interview
Second TSE System Error
In Seven Months Halts Derivatives Trade
By Toshiro Hasegawa, Yoshiaki Nohara
and Yumi Ikeda - Bloomberg.com
The Tokyo Stock Exchange Group Inc. said a computer error halted trading of Topix Index futures, Japanese government bond futures and options trading for more than 90 minutes, the second time in seven months a malfunction has forced a shutdown.
The failure occurred from about 9:20 a.m., spokesman Naoya Takahashi said in a phone interview. The breakdown may have contributed to declines in Japanese bonds ahead of a government auction today, said Makoto Suzuki, a senior bond strategist at Okasan Securities Co., one of the 25 primary dealers obliged to bid at government debt sales. The exchange suffered its biggest disruption in six years on Feb. 2 as a fault halted trading for 3.5 hours in some of the country's biggest companies. Trading resumed today from 10:55 a.m.
Fiscal Cliff 2013 Fears Already Stifling U.S. Economy
BY DIANE ALTER, Contributing Writer, Money Morning
Fiscal cliff 2013 remains poised to throw the struggling U.S. economy into recession when tax increases and spending cuts kick in Jan. 1 - which has scared companies away from spending any more money than they have to this year.
Even worse, the country's fiscal cliff fears have increased as a bevy of fresh data has been more dismal than economists expected. Most recently, July's U.S. jobs report released last Friday showed the U.S. unemployment rate ticked up to 8.3% from 8.2% in June.
Bernanke: despite recovery, many struggling
(Reuters) - Federal Reserve Chairman Ben Bernanke said on Monday that although broad measurements of the economy point to recovery, many people and businesses are facing tough times.
"Even though some key aggregate metrics -- including consumer spending, disposable income, household net worth, and debt service payments -- have moved in the direction of recovery, it is clear that many individuals and households continue to struggle with difficult economic and financial conditions," he said in prepared text.
Treasuries Snap Loss After Bernanke Notes 'Struggle'
By Wes Goodman - Bloomberg.com
Treasuries snapped a two-day decline after Federal Reserve Chairman Ben S. Bernanke said indicators of strength in the U.S. economy may fail to measure the struggles faced by individuals.
Ten-year yields were 18 basis points from the record low as the comments bolstered speculation the Fed will increase its bond purchases to support the economy. The Treasury Department is scheduled to auction $32 billion of three-year notes today, $24 billion of 10-year debt tomorrow and $16 billion of 30-year bonds on Aug. 9.
Fed Hits Kill Switch on Liquidity
BY CLIF DROKE - FinancialSense.com
Lately investors have been worried about liquidity, specifically the central bank's willingness (or unwillingness) to continue providing it, and with good reason. Without periodic injections of liquidity, investors eventually lose interest as financial markets begin to languish. And in a financial economy like the U.S., the death of a bull market means the death of the economic recovery.
Bull markets are to a large extent liquidity driven affairs. Without an abundance of excess monetary liquidity sloshing through the financial market, stocks and commodities have little hope of developing the necessary ingredient of forward momentum. Momentum is what attracts an ever-growing number of investors to participate in a bull market, which in turn is what keeps the bull market going. When liquidity dries up, momentum perishes and investors quickly lose interest. This, in a nutshell, is how bull markets turn into bear markets, viz. the absence of liquidity.
Quick Take on USD
By Gary Tanashian
US Dollar Can Take a Breather
Global rally potential is all about arresting the deflation case for a counter trend expression of bullishness. Some of my inflationist friends will disagree, but I believe that the deflationary condition is the dominant backdrop (periodically fought by inflationary policy making) and that the admittedly valueless USD can see future upside.
There will be plenty more to write on this as the herds hiding in USD begin to come out and play with the asset market bulls. Because as usual, we'll begin highlighting what might come next well ahead of time.
Negative interest rates
spell final defeat for beleaguered savers Market interest rates are once again sending out some very disturbing signals – ones that are suggestive of a very hard landing indeed for the global economy.
By Jeremy Warner - Telegraph.co.uk
Ignore, for the moment, what has happened to bond yields in the troubled eurozone periphery. That is an unnecessary tragedy unique to certain members of the euro. The bigger story is that across large parts of Europe, nominal interest rates are turning negative. Germany, the Netherlands, Finland, Denmark, Austria and Switzerland are already there, and now there is even some possibility of the UK joining them.
Last week, the yield on two-year gilts reached a record low, and though it has come back a bit since – boosted by the possibly mistaken belief that Mario Draghi, president of the European Central Bank, is about to come riding to the rescue in the eurozone debt crisis – it still hovers at an almost unbelievable 0.05pc. Real yields on index-linked gilts have been negative for some years now, but this is the first time that nominal yields have looked like joining them.
Draghi and friends just want your money
By Bill Gross
Psst! Investors – do you wanna know a secret? Do you wanna know what Angela Merkel, François Hollande, Christine Lagarde and Mario Draghi all share in common? They want your money!
They've wanted it for years now but you are resisting by holding on to it or investing it at negative interest rates in Switzerland, Germany and a growing number of other countries considered to be European Union havens. They want you to be less frugal and more risk-seeking. They want your money as a substitute for theirs in Spain, Italy and, of course, Greece, but they don't mention that any more. The example would be too off-putting. "Investors," they plead, "show us your money!"
Promises, Promises
By: John Browne - GoldSeek.com
In the last week of July, ECB President Mario Draghi attracted investor interest worldwide by saying that he would do "whatever it takes" to solve the Eurozone crisis and, in the process, save the euro. Markets rallied as investors concluded that Mr. Draghi could only be referring to the financial heroine of quantitative easing (QE) and the transfer of toxic Eurozone sovereign debt assets from troubled private banks to EU taxpayers. This mini rally built on momentum that had previously been fueled by belief that Fed Chairman Bernanke would imminently announce a further round of QE in the United States.
Given the record of Central bankers for encouraging hopes that invariably have proved fruitless, it was surprising how international financial markets appeared to be taken for yet another ride. But addiction is powerful and financial heroine is little different to the real thing in its ability to fire optimism.
Germany and Italy near blows over euro German politicians from across the spectrum have reacted furiously to warnings by Italy's Mario Monti that Bundestag control over EU debt policies threatens to bring about the "disintegration" of the European project.
By Ambrose Evans-Pritchard - Telegraph.co.uk
"We must make it clear to Mr Monti that we Germans will not shut down our democracy to pay Italian debts," said Alexander Dobrindt, secretary-general of Bavaria's Social Christians (CSU).
Bundestag president Norbert Lammert said parliament's integrity cannot be subordinated to the ups and downs of the markets. Free Democrat (FDP) leaders said Italy's unelected prime minister is playing with political fire by trying to circumvent democratic legitimacy.
Debt crisis threatens to break up Europe Tensions within the eurozone over how to resolve the debt crisis are turning countries against each other and threatening to rip Europe apart, Italian Prime Minister Mario Monti has warned.
By Philip Aldrick - Telegraph.co.uk
Tensions within the eurozone over how to resolve the debt crisis are turning countries against each other and threatening to rip Europe apart, Italian Prime Minister Mario Monti has warned.
Resentment in Italy is growing against Germany, the European Union and even German chancellor Angela Merkel herself, he said, adding that "the pressures already bear the traits of a psychological break-up of Europe".
Why Europe Matters…
And How Spain Could Wipe Out Your 401(k)
By Graham Summers - ZeroHedge.com
Many people have been writing in to ask me, "why are you focusing on Europe so much? Who cares about Spain?"
The short answer is that everyone should care about Spain. Spain could potentially take down the banking system in Europe, which would mean the US facing a Financial Crisis at least on par with 2008.
How would this unfold?
To understand this, you need to understand how the European banking system works. By now everyone knows that many European countries have massive debt problems: Portugal, Italy, Ireland, Greece, and Spain, the infamous PIIGS.
What Happens to the Gold World
when Greece Exits the Eurozone
By: Julian D. W. Phillips - GoldSeek.com
Can it Happen?
It's becoming clearer and clearer that there is a large blind spot in the minds of financial people regarding this probability. Only financial men who have been in the markets for 40+ years understand what can happen. Since then and until 2007, financial men in general have lived in a growing, constructive world that has bred a comfort zone that's still the norm for them. But we've entered a decaying zone, one replete with disappointing financial news and sagging structures that repeatedly fail to meet expectations.
NY regulator: British bank helped Iran
evade sanctions, hide billions
By Peter Schroeder - TheHill.com
A British bank has been accused of flouting U.S. money-laundering laws by helping Iran hide at least $250 billion from regulators over the last decade, operating as a "rogue institution," according to a New York state regulatory report.
New York's Department of Financial Services issued a lengthy report Monday that found that a branch of Standard Chartered repeatedly helped the Iranian government skirt sanctions by steering funds through its New York branch across roughly 60,000 transactions, and could have its license to operate in New York revoked.
Standard Chartered Bank
accused of scheming with Iran to hide transactions British bank named in scathing report by regulators which claims SCB helped Iranian clients skirt US financial sanctions
By Dominic Rushe in New York
and Jill Treanor in London - Guardian.co.uk
Standard Chartered Bank ran a rogue unit that that schemed with Iran's government to hide more than $250bn (£160bn) in illegal transactions for nearly a decade, according to a scathing report by New Yorkregulators.
According to the report filed by the New York state department of financial services (NYSDFS), when challenged a US colleague, a Standard Chartered executive caustically replied: "You fucking Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."
U.K. bank accused of laundering money for Iran through U.S.
By Michael Gormley, AP - USAToday.com
ALBANY, New York – A British bank schemed with the Iranian government to launder $250 billion from 2001 to 2007, leaving the United States financial system "vulnerable to terrorists," New York's financial regulator charged Monday.
State Financial Services Superintendent Benjamin Lawsky signed an order that requires Standard Chartered Bank to answer his questions following an investigation into "wire stripping," which is the process of removing crucial identifiers in financial transactions.
Federal Reserve says U.S. bank lending conditions easing
(Reuters) - The Federal Reserve said on Monday banks continued to ease lending standards for larger firms in the last three months but small businesses are still having a hard time accessing credit.
The results from the central bank's quarterly senior loan officer survey suggest the ability of firms to borrow has continued to improve despite recent signs of weakness in the economic recovery.
A number of banks eased loan standards on auto and credit card loans, the Fed said.
The Bond Market's China Syndrome We are blaming Europe for our current economic problems, but in reality they are doing us a favor by providing a blueprint for how a bond market meltdown can unfold.
By Vince Foster - Minyanville.com
Wednesday's FOMC meeting policy release hit the tape with a big fat thud keeping the status quo and offering no hints of any new initiative:
The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.
Thanks, folks, but we already knew that. Nevertheless, the various pundits, economists, and strategists all chimed in that they were leaving the door open to a September launch of some sort of QE III and that we would likely hear more about the policy options at the Jackson Hole Fed Symposium coming at the end of August.
Treasury to receive $750M more from AIG stock sale
By The Washington Times
WASHINGTON (AP) — The government says it expects to receive $750 million more from the latest sale of stock held in American International Group. The sales are part of an effort to recoup taxpayer money from the largest bailout of the 2008 financial crisis.
The Treasury Department says the banks underwriting the sale have exercised their option to buy 24.6 million AIG shares at the offering price of $30.50 each. That brings the total from the fourth round of sales inAIG stock to $5.75 billion. Treasury announced last week that it sold $5 billion in AIG stock.
As elections loom, Fed's Fisher sees policy minefield
By Ann Saphir
(Reuters) - New steps by the U.S. Federal Reserve to stimulate the economy so close to a presidential election would be a mistake, a top Fed official said on Monday, warning it could create a false impression of bowing to political pressure.
Richard Fisher, president of the Dallas Federal Reserve and a consistent hawk on monetary policy, said the real problem with the economy, and the stubbornly high jobless rate, is Congress's lack of action on fiscal policy.
U.S. Midwest hit by Perfect Gasoline Storm
By Daniel J. Graeber - OilPrice.com
Retail gasoline prices in the U.S. Midwest were as much as 50 cents higher than in the rest of the country. By Monday, the price of a gallon of regular unleaded jumped 13 cents from last week in Detroit to settle at $3.99. The spike in retail gasoline prices follows a series of pipeline spills in Wisconsin and refinery shutdowns in Chicago and elsewhere. The impact of the string of industrial incidents on consumers in the region may be short-lived, but retail prices rarely decline as fast as they increase.
Keystone XL pipeline may threaten aquifer
that irrigates much of the central U.S.
By Steven Mufson - WashingtonPost.com
LINCOLN, NEB. — Jane Kleeb is a savvy activist who, Nebraska's Republican governor once said, "has a tendency to shoot her mouth off most days." A Florida native who moved to Nebraska in 2007 after marrying a rancher active in Democratic politics, she did as much as anyone to bring the massive Keystone XL crude oil pipeline to a halt last year.
James Goecke is a counterpoint to Kleeb. A hydrogeologist and professor emeritus at the University of Nebraska in Lincoln, he has been measuring water tables in Nebraska's ecologically sensitive Sand Hills region since 1970 and has shunned the political limelight — until now. He recently appeared in an ad for the pipeline's owner, TransCanada, rebutting some of the arguments against the project and its new route.
Warning: Hidden Obamacare Taxes
Will Cost You More Than You Think
BY DAVID ZEILER, Associate Editor, Money Morning
The bill for Obamacare is on its way, and guess what? It's addressed to you.
You see, all those great benefits included in the Affordable Care Act don't come cheap, which is why the newhealthcare law includes a barrage of new "Obamacare taxes."
And don't believe for a second the new Obamacare taxes will hit only the "rich" or those making over $250,000.
Some do, but you'd be surprised at how many of these new taxes also hit the middle class.
Illinois to Spend More on Pensions Than on Education
By Elizabeth MacDonald - FOXBusiness.com
The state of Illinois faces at least $83 billion in unfunded liability between its five pension systems, and is on track to spend more on its government pensions than on education by 2016, a new study released by Governor Pat Quinn's office says.
The state budget office conducted the study based on a "district-by-district analysis" if the state does not enact comprehensive pension reform, the governor said in a statement. Governor Quinn released the study a few days after calling a special session dedicated to pension reform on August 17.
Public pension investments post losses in second quarter
(Reuters) - Public retirement systems, already hobbled by the financial crisis and recession, saw their investments dip in the second quarter, with a median loss of 1.73 percent, largely because of their reliance on equities, according to a report released on Monday.
Public pension investments only eked out a median return of 1.15 percent over the year ended on June 30, according to Wilshire Associates, which analyzes institutional assets.
Inside the Latest Jobs Report
by PAUL CRAIG ROBERTS - CounterPunch.org
In his report on the Bureau of Labor Statistics' latest jobs and unemployment report, statistician John Williams (shadowstats.com) writes: "The July employment and unemployment numbers published today, August 3rd, were worthless and likely misleading."
I will spare the readers an explanation of Williams' account of the manipulation that is occurring as it is too arcane for the general reader.
Instead, Let's just apply common sense. According to the BLS, there were 163,000 new nonfarm payroll jobs created in July. This figure is about 13,000 more jobs than is needed to keep pace with population growth. Therefore, the unemployment rate should have declined fractionally. Instead, the unemployment rate (U3) rose from 8.2% in June to 8.3% in July.
Tim Tebow means business Star quarterback draws throngs of fans to Jets training camp
By Dennis Waszak Jr. - AP - WashingtonTimes.com
CORTLAND, N.Y. — Welcome to Tebow Town, USA.
That's what one of the handful of T-shirts devoted to Tim Tebow on sale around town proclaims this quaint spot in central New York to be.
It's hard to argue with such a sentiment. It's been all Tebow, all the time at New York Jets camp, and local business owners are cashing in more than ever. Fans have been flocking to the area since the Jets rolled into town July 26 — many wanting to get a glimpse of the NFL's most popular backup quarterback.
Trans Mountain Pipeline Could Change Canada's Energy Future
By James Burgess - OilPrice.com
Forget the Keystone XL, or Northern Gateway pipelines. The pipeline that really could change Canada's energy industry is the Trans Mountain pipeline.
Currently the Trans Mountain carries oil across the Rockies to the Kinder Morgan-owned Westridge Terminal in Vancouver. There it is loaded onto a tanker, once every week, and shipped off around the world, actually the tankers generally head off down to L.A.'s Long Beach.
The Reason Behind China's Interest in Canada's Oil Sands
By Robert Rapier - OilPrice.com
Over the past two decades, Chinese oil consumption has quadrupled to nearly 10 million barrels per day. For the past decade they have been on a growth trajectory which has shown signs of slowing, but could nevertheless see them overtake the U.S. as the world's top oil consumer by the end of the decade. As I have written before, I believe China's economy will be the single-biggest long-term driver of oil prices over at least the next 5-10 years.
As a result, China's presence has been felt across the globe as they aggressively make acquisitions to feed their thirst for oil. Over the past decade, Chinese spending on energy acquisitions has risen by more than an order of magnitude, rising to nearly $48 billion in 2009 and 2010.
Renewable Fools Standard The drought should mean an end to the ethanol subsidy -- the last thing the EPA and Obama will ever surrender.
By JED BABBIN - The American Standard.org
Your car will get better mileage if the price of your Thanksgiving turkey goes down, and my chain saw will start more easily. It all comes down to the price of corn, and how much ethanol the federal "Renewable Fuel Standard" mandates to be blended in gasoline.
The price of corn is going to go up sharply in the coming months because the worst drought in fifty years has brought disaster to corn farmers. According to the EPA, which has control of the Renewable Fuels Standard created by the 2005 Energy Policy Act, America grew about ten billion bushels of corn in 2000, almost half of the world's production of 23 billion bushels. Corn was plentiful and cheap, so congressional "experts" mandated that a minimum of 7.5 billion barrels of ethanol be included in gasoline sold in 2012. (It takes about one bushel of corn to produce a gallon of ethanol.)
GM drove SAAB into bankruptcy Spyker files suit against General Motors
for driving Saab into bankruptcy Netherlands-based sports car maker alleges GM sabotaged Saab deal with Chinese investors to avoid competition
By Dominic Rushe in New York - Guardian.co.uk
General Motors deliberately drove Saab into bankruptcy, the Swedish car firm's former owner claimed in a $3bn lawsuit filed on Monday.
Spyker NV, which bought Saab from GM in 2010 for $74m, filed the claim in the US firm's home state of Michigan. Saab declared bankruptcy just over a year after the deal was done, unable to pay its suppliers or employees and leaving debts of $2bn.
Wisconsin temple killer was neo-Nazi
who left army in disgrace White supremacist gunman's past emerges as families in Wisconsin mourn deaths of six Sikhs
By GUY ADAMS - Independent.co.uk
The gunman who killed six worshippers at a Sikh temple in Wisconsin at the weekend was a known white supremacist who played guitar for End Apathy, a white-supremacist rock band whose best-known songs invite fans to "stand proud and raise the white man's flag."
"Wade Michael Page was shot dead at the scene by police after wounding an office. Civil rights groups described him as a "frustrated neo-Nazi" who spent six years in the US army during the 1990s. He served part of that time in "psychological operations," but left the military with a Less Than Honourable Discharge, shortly after having been mysteriously demoted from sergeant to specialist.
Wade Michael Page named as temple gunman
as FBI examines far-right links FBI takes charge of 'possible domestic terrorism case' and look for other 'person of interest' who appeared at Wisconsin temple
By Chris McGreal in Oak Creek, Matt Williams and Chitrangada Choudhury in New York - Guardian.co.uk
The FBI is examining ties between white supremacist movements and a US army veteran who killed six people as they gathered at a Sikh place of worship in Wisconsin on Sunday.
The police identified the gunman as Wade Michael Page, 40, who served in a US army psychological operations unit before he was discharged in 1998 for a pattern of misconduct, including being drunk on duty.
CONFERENCE OF MAYORS, REPRESENTING 1,295 U.S. CITIES, CALLS FOR STRICTER GUN LAWS FOLLOWING SIKH TEMPLE SHOOTING
By Jason Howerton - TheBlaze.com
Following Sunday's horrific shooting at the Sikh Temple of Wisconsin, Michael Nutter, Philadelphia mayor and president of the U.S. Conference of Mayors, released a statementMonday and argued the tragedy signaled the need for stricter gun laws in the U.S. that would help "prevent senseless tragedies."
The U.S. Conference of Mayors is the official "nonpartisan" organization of cities with populations greater than 30,000. There are currently 1,295 cities in the organization and each one is represented by its mayor.
America: Christian or Post-Christian? Either way, it suggests an abdication of responsibility.
By MARK TOOLEY - The American Spectator.org
A recent poll of the hundred or so board members of the National Association of Evangelicals (NAE) found most denying America is a Christian nation.
"Much of the world refers to America as a Christian nation, but most of our Christian leaders don't think so," explained NAE President Leith Anderson in a news release. "The Bible only uses the word 'Christian' to describe people and not countries. Even those who say America is a Christian nation admit that there are lots of non-Christians and even anti-Christian beliefs and behaviors."
About 68 percent agreed America is not Christian while 32 said it is, according to the June 2012 Evangelical Leaders Survey. Both pro and con agreed America is a missions field.
Second Fire In Five Weeks Burns Missouri Mosque
By ERIC LACH - TalkingPointsMemo.com
A second fire in less than five weeks occurred at a mosque in Joplin, Missouri early Monday morning. The cause of the latest inferno is still unknown, but Monday's flames were much more devastating than those that occurred July 4, in an incident that authorities later determined was an act of arson.
Video shot by local television news station KSNF on Monday captured massive flames engulfing the building.
Firefighters were called to the scene at the Islamic Center of Joplin around 3:30 a.m., according to KSNF.
The Jasper County Sheriff's Office told TPM a news conference has been planned for Monday afternoon, and that ATF and the FBI will be involved in the investigation.
The New Ugly Americans Naturally, Chuck Schumer is one of them, sabotaging America's energy security and world standing.
By WILLIAM TUCKER - The American Spectator.org
One of the saddest and most tragic spectacles in history is to witness a nation trying to exercise its power long after the economic origins of that power have gone into decline. Think of Austria languishing as the rest of Europe industrialized or France trying to defend itself against Germany in 1940 or even Russia trying to play the Cold War combatant as Communism rotted it from within.
Today we are undergoing a similar dance in our economic relation with China. And wouldn't you know, it's our liberal friends in Congress, so enthusiastic about hamstringing American enterprise, who are the last to realize that they are undercutting our political hegemony as well.
Panetta says Pentagon will drop
base closure plans for fiscal year 2013
By Carlo Muñoz - TheHill.com
The Defense Department (DOD) is abandoning its push for wide-scale base closures in the continental United States, focusing instead on plans to draw down military installations overseas, Secretary Leon Panetta announced Monday.
"I had no illusions that [base closures] would be an easy sell politically, but we had a responsibility ... to put everything on the table," Panetta said in a speech at the annual conference of the Association of Defense Communities in Monterey, Calif. "It is now clear that there will not be a round of [closures] authorized in 2013."
Bee swarm attacks Hillary Clinton
By Justin Sink - TheHill.com
Secretary of State Hillary Clinton's tour of Malawi had an inauspicious finale on Monday as she and her detail were targeted by a swarm of bees at the airport.
Clinton and her detail were headed to board her plane at Kamuzu International Airport in the capital, Lilongwe, when a swarm of bees descended on the farewell gathering. According to press reports, Malawi and American officials scampered for cover while Clinton ran onto the jet for cover.
Amazon.com to offer textbook rental service
by Emily Parkhurst - Puget Sound Business Journal
Just in time for back-to-school season, Amazon.com announced Monday that it will offer a textbook rental service for college students.
Students have to sign up for Amazon Student, a free membership program for college students with .edu email addresses, and then they will be able to rent textbooks for significantly less than the books cost to buy.
I taught English and journalism at several community colleges in Maine before moving out to Seattle earlier this year and I can say with some authority that textbook prices are a huge concern for college students.
Apple To Drop Google's YouTube From New Version Of IOS
By Adam Satariano - Bloomberg.com
Apple Inc. (AAPL) said Google Inc. (GOOG)'s YouTube won't be included in the next version of the software used in the iPhone and iPad, the latest evidence of escalating competition between the two companies.
Apple has featured YouTube as a core application since the iPhone debuted in 2007. As Google has pushed into the market with its Android software -- now the most-used smartphone operating system -- the relationship between the two companies frayed. Apple also plans to replace Google's maps application with its own in the next iOS release.
Apple Mountain Lion Lashes Mac To IPad: Rich Jaroslovsky
By Rich Jaroslovsky - Bloomberg.com
Mountain Lion, the latest Mac operating system, introduces more than 200 new features but seems to have only one overarching goal: binding your computer ever more firmly to your iPhone and iPad, while binding you ever more firmly to Apple. (AAPL)
Compared to the previous version of Apple's OS X software, Lion -- which overhauled everything from how programs are launched to how you scroll through a web page -- Mountain Lion is an incremental improvement, bringing to the Mac several functions already familiar to users of the company's mobile devices.
One in 12 Facebook accounts 'fake'
JONATHAN BROWN - Independent.co.uk
Around one in 12 accounts on the social-networking site Facebook could be "fake", according to the internet giant's latest accounts.
It means that 83 million of the site's estimated 955 million users worldwide – or 8.7 per cent – are either not real or are breaking the company's user guidelines.
China lambasts US over South China Sea row Beijing accuses Washington's intervention in the region of 'fanning the flames and provoking division'
By Tania Branigan in Beijing - Guardian.co.uk
China's state-run media has lambasted the United States over its intervention in the South China Sea row, highlighting the alarming escalation of a long-running dispute.
Furious commentaries ordered Washington to "shut up" and accused it of "fanning the flames and provoking division" in the region. The foreign ministry in Beijing called in a senior US diplomat at the weekend over the State Department comments.
The Syrian Mousetrap
by AFSHIN RATTANSI - CounterPunch.org
The current cast of the longest-running play in the world is ready for its changeover – and that doesn't just refer to hegemonic power-shifts in theatres of war. The Mousetrap, showing in the West End of London and currently starring Georgina Sutcliffe was written by that old Syria resident, Agatha Christie. The cast of the play which celebrates its diamond jubilee along with the British Queen, this year, changes every ten months. When the present cast started, Syria became the first country ever to be saved by a third double veto cast by Russia and China at the UN Security Council.
Revolution in a Vacuum
By Shlomo Ben-Ami - Project-Syndicate.org
MADRID – The Cold War is long over, but superpower rivalry is back. As a result, the international community's capacity to unite in the face of major global challenges remains as deficient as ever.
Nowhere is this more clearly reflected than in the case of Syria. What was supposed to be a coordinated effort to protect civilians from ruthless repression and advance a peaceful transition – the plan developed by former United Nations Secretary-General Kofi Annan – has now degenerated into a proxy war between the United States and Russia.
Assad regime crumbling down to core Syrian prime minister, family flee to Jordan
By Bradley Secker and Louise Osborne - WashingtonTimes.com
IDLIB, Syria — Syria's prime minister Monday became the latest and highest-ranking official to defect to the opposition, a sign that divisions within the country are hardening further along sectarian lines.
Riad Hijab is a prominent member of Syria's Sunni Muslim majority, which forms the foundation of the opposition in the 17-month-old uprising against President Bashar Assad and his loyalists of the minority Alawite sect.
Syria's latest defection:
prime minister's move is PR defeat rather than fatal blow Riyad Hijab is most high-profile figure to defect but opinion is split over how far move will harm Assad regime
By Ian Black, Middle East editor - Guardian.co.uk
Syria's prime minister on Monday became the most high-profile political figure to quit the regime of Bashar al-Assad – a propaganda coup for the opposition as the country's crisis continued to escalate.
News of Riyad Hijab's dramatic move broke shortly after a bomb blast hit state TV in the centre of Damascus and reports from the northern city of Aleppo pointed to an imminent government offensive.
Syria's prime minister confirms defection
to 'join revolution of freedom'
By Ian Black, Middle East editor - Guardian.co.uk
Riyad Hijab, Syria's prime minister, has confirmed he has defected to join "the revolution of freedom and dignity" to overthrow President Bashar al-Assad – a propaganda coup for the opposition as the country's crisis escalates.
Hijab is the most senior civilian politician to defect since the uprising against Assad began 17 months ago. Hijab arrived in neighbouring Jordan with two other so far unnamed ministers. "I announce that I am from today a soldier in this blessed revolution," he said in a statement. Opposition supporters hailed the news but its long-term significance is hard to assess.
Waukegan Savings Bank is 40th bank failure of year
By Anthony Lazarus
SAN FRANCISCO (MarketWatch) - Waukegan Savings Bank of Waukegan, Ill., was closed by regulators on Friday and is the 40th U.S. bank failure of the year, the Federal Deposit Insurance Corp. said. First Midwest Bank of Itasca, Ill., will assume the $77.5 million in deposits of Waukegan Savings Bank, and also purchase its roughly $89 million in assets. The cost of the failure of the two-bank branch to the FDIC's deposit-insurance fund will be $19.8 million.
Shilling: New recession has begun Don't get excited about the recent 'green shoots'
By Howard Gold
NEW YORK (MarketWatch) — After a rocky spring, we've had two consecutive months of gains in the Standard & Poor's 500 index.
And some pros are looking for a strong fall and are hoping the Federal Reserve rides to the rescue with more "quantitative easing" at its September meeting.
But just when you thought it was safe to get back into the market, here comes Gary Shilling to throw ice water on your hopes and dreams.
Shilling, a perennial contrarian, said that when economists sift through all the data, they will say the next U.S. recession began in the second quarter of 2012.
Comeback Nation:
Why the U.S. Economy Is Much Stronger Than You Think Quite like an Olympic sport, hand-wringing about "America's decline" is popular, practiced all around the world, and often dominated by Americans, themselves. Unlike an Olympic event, it's wasted energy.
By Ruchir Sharma - TheAtlantic.com
Usain Bolt is the most dominant sprinter the world has seen in a century, perhaps more, so when he runs at the London games, anything less than victory by a blistering margin will be greeted as a disappointment. Results are always relative to expectations, and this as true for global economic competition as for the 100-meter dash. These days, the United States is an underestimated underdog, while China is still widely seen as something more like Bolt. The expectations gap is crucial to parsing the confused public discussion of the American recovery, and what it means for America's future.
Where's the gold? NY Fed undergoes first-ever audit
RT.com
A massive trove of gold kept under lock and key five stories below Manhattan at the New York Federal Reserve has been undergoing its first audit in history. It could put conspiracy theories - for example, that the gold is a sham - to sleep for good.
According to the official record, the US government keeps billions of dollars in gold stored beneath the New York Fed's Italian Renaissance fortress around the block from Wall Street.
But conspiracy theorists claim that the gold stock may have been stolen years back in a dramatic caper, that it's been used for backdoor deals with foreign governments, or even that it's been removed and replaced with gold-painted metal bars.
Cash-for-gold shops boom as Italians sell off their bling Italy's traditional goldsmiths are up in arms over a boom in the poorly regulated cash-for-gold sector that is making billions for the mafia as hard-up Italians rush to sell off their bling.
Telegraph.co.uk
Cash-for-gold shops have filled Italy's streets in recent months, with blanket television adverts urging Italians to sell off their medallions and jewels for quick cash, AFP reports.
Much of the gold eventually makes its way across the Alps to Switzerland - whether legally or smuggled across the border - making gold Italy's fastest growing export and Switzerland an increasingly prominent market for Italy.
Libor May Be Manipulated, But Silver Is Not, CFTC To Conclude
Submitted by Tyler Durden - ZeroHedge.com
In what may be the most amusing news of the day, according to the FT the CFTC will shortly drop its 4 year old investigation into silver manipulation, "after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation." How about evidence to support an "illegal" case? Of course, that this is happening after the recent discovery that the world's most pervasive fixed income benchmark was manipulated for years, if not decades, can only be reason for laughter and wonder if the CFTC used the same assiduous diligence methods in pursuing the alleged perpetrators of precious metal manipulation as it did in letting the fraud at PFG slip through its fingers for two decades. We will probably never know, or at least not until an email mentioning bottles of Bollinger and silver price "fixing", (or "banging the close" for that matter) in the same sentence inexplicably turns up and makes a complete mockery of the CFTC yet again.
Venetian cunning of Draghi-Monti masterplan
may save euro for now So we enter the treacherous market month of August with Europe in limbo. The actors wait upon each other. World finance held hostage to a fiendishly complicated game of diplomatic chess.
By Ambrose Evans-Pritchard - Telegraph.co.uk
The European Central bank will not move until Spain requests a full sovereign rescue from the EU bail-out fund (EFSF), and cedes yet more ground to EU commissars.
Spain in turn will not move until the ECB lays out the exact terms of any deal, and until the Teutonic bloc signals whether it intends to crush Spain into abject humiliation - a la Grecque - or seek a fraternal outcome.
Euro elites should say if they could ever view
single currency as a failure What conditions could convince the euro elites that the euro was a failure and if they can imagine such conditions, then what stops them from concluding that they exist now?
By Roger Bootle - Telegraph.co.uk
In this last column before my summer break, I cannot resist returning to this year's leitmotif, the euro. Greece is due to run out of money on August 20 and the potential official providers of funds are dragging their feet. Quite understandably. Although the new Greek government agreed to the current bail-out package, it has failed to stick to the conditions. Surprise, surprise.
I suspect that the euro-establishment is ready to cut Greece adrift, perhaps in the next few weeks. Historically, September has been the month for crises. Lehman Brothers collapsed in September 2008; the Northern Rock crisis hit us in September 2007; the ERM crisis happened in September 1992; and the UK left the Gold Standard in September 1931.
Spain And Italy Are Toast Unless Germany
Allows The ECB To Print Trillions Of Euros
By Michael Snyder - TheEconomicCollapseBlog.com
The financial chess game in Europe is still being played out, but in the end it is going to boil down to one very fundamental decision. Is Germany going to allow the ECB to print up trillions of euros and use those euros to buy up the sovereign debt of troubled eurozone members such as Spain and Italy or not? Nothing short of this is going to solve the problems in Europe. You can forget the ESM and the EFSF. Anyone that thinks they are going to solve the problems in Europe is someone that would also take a water pistol to fight a raging wildfire. No, the only thing that is going to keep Spain and Italy from collapsing under the weight of a mountain of debt is a financial nuke. The ECB needs to have the power to print up trillions of euros and use that money to buy up massive amounts of sovereign debt in order to guarantee that Spain and Italy will be able to borrow lots more money at very low interest rates. In fact, this is probably what European Central Bank President Mario Draghi has in mind when he says that he is going to "do whatever it takes to preserve the euro". However, there is one giant problem. The ECB is not going to be able to do this unless Germany allows them to. And after enduring the horror of hyperinflation under the Weimar Republic, Germany is not too keen on introducing trillions upon trillions of new euros into the European economy. If Germany allows the ECB to go down this path, Germany will end up experiencing tremendous inflation and the only benefit for Germany will be that the eurozone was kept together. That doesn't sound like a very good deal for Germany.
In Order To Be Saved, Spain And Italy
Must First Be Destroyed
Submitted by Tyler Durden - ZeroHedge.com
There has been much confusion over last week's remarks by Mario Draghi, with the prevailing narrative being that the market first got what Draghi meant wrong (when it plunged), then right (when it soared). The confusion is further granulated by attempts to explain what was merely a desperate attempt at delaying a decision for action, which was inevitable considering the now open opposition by Buba's Weidmann, into a formal and planned plotline: "Inverse Twist" or other such technical jargon is what we have seen floating around. The reality is that, just like all other central bankers, Draghi did what he does best: use big words and threats of action in hope it will buy him a few extra days of time. The reality is also that, just like when the LTRO was announced, the market did get it right initially, when peripheral bonds plunged, and got it wrong over the subsequent 3 months when bond prices rose, only to collapse to new lows (and in the case of Spain - record high yields as of two weeks ago). Back then, the ECB merely bought a few months time with its transitory intervention. This time it has at best bought a few days with the lack of any actual action. And yet, Draghi did leave a way out, for at least another brief respite (where unless Europe expands the available bailout machinery yet again, the respite will have an even briefer half life than that from the LTROs). The way out is simple, and in order to avoid any confusion, we will use an allegory from the movie Batman: Spain and Italy can be saved. But first they must be destroyed.
The myth of a free Hong Kong economy - Part [1 of 3]
By Eddie Leung and Pepe Escobar - ATimes.com
HONG KONG - Open any standard economic textbook and look for the definition of a free economy; its key characteristic is the lack of government intervention. Less state intervention means a freer market.
On this standard, Hong Kong has been hailed as the world's freest economy for more than two decades. But is this the whole truth? What if the main sectors of the whole economy are dominated by a few oligopolies or even a virtual monopoly?
The rulers of the Hong Kong game - Part [2 of 3]
By Eddie Leung and Pepe Escobar - ATimes.com
HONG KONG - Life is indeed sweet if you're a Hong Kong property tycoon. In what is routinely considered the "freest" economy in the world, an oligarchy of property developers sets supply and pricing (see part 1 of this report). This applies not only to residential apartments but also to shopping malls, hotels, luxury serviced apartments and industrial and office space.
Top financial muscle rules. It gobbles up Hong Kong's best locations - near mass transit systems or by the spectacular waterfront. Behind the façade of all those glitzy malls though, life is very hard. Retail tenants pay not only a base rent but also a surplus rent when business turnover reaches a certain level. You can't go wrong - if you're the owner, not the tenant.
China addicted to Hong Kong's 'opium' - Part [3 of 3]
By Wu Zhong - ATimes.com
HONG KONG - In an analogy, Hong Kong can be likened to a small cat and mainland China to a giant tiger, when compared by their geographical size and economic strength. Interestingly, the analogy may remind one of a popular Chinese fable. It goes like this:
The first part of this fable may be said to vividly describe the relationship between Hong Kong and mainland China. It is a fact that in the past three decades mainland China has learned all the techniques from Hong Kong for building a capitalist-style free-wheeling market economy. Given its size and with its success, the mainland has inevitably become stronger and more powerful - to the point where it is now the world's second-largest economy.
Central Banks Revealed They Are Now Impotent
BY SY HARDING - FinancialSense.com
If you go into the woods with a gun and meet an angry bear, and you make a great noise firing off your ammunition but miss the bear, the noise only scaring it off for a while before it comes back at you again, and you keep firing the gun and making a great noise, but continue to miss, the bear catches on, and so do you. You realize you're almost out of rounds, that firing more will probably be unproductive since you really aren't a shooter and the rounds don't go where you aim them. But since just making a noise had been effective in at least scaring the bear away for a while, maybe you can save yourself by just waving the gun and making a lot of noise. You know it's an act of desperation not likely to succeed - but it might. So it's worth a try, and what else can you do anyway.
Keiser Report: Superstition Trading (E323)
In this episode, Max Keiser and Stacy Herbert discuss artificial superstition, increasing the inflation target to 100% and suicide watch for the too big to fail banks. They also discuss HSBC's misselling of interest rate swaps and drug cartel money laundering. In the second half, Max interviews author and blogger, James Howard Kunstler of Kunstler.com, about walking on coal and waiting for Santa Claus with Paul Krugman's magical thinking.
Repeal of Glass-Steagall: Not a cause, but a multiplier
By Barry Ritholtz - WashingtonPost.com
....The repeal of Glass-Steagall may not have caused the crisis — but its repeal was a factor that made it much worse. And it was a continuum of the radical deregulation movement. This philosophy incorrectly held that banks could regulate themselves, that government had no place in overseeing finance and that the free market works best when left alone. This belief system manifested itself in damaging ways, including eliminating regulation and oversight on derivatives, allowing exemptions for excess leverage rules for a handful of players and creating dangerous legislation.
As the events of 2007 to 2009 have revealed, this erroneous belief system was a major factor leading to the credit boom and bust, as well as the financial collapse.
'Corporate Welfare' Costs Taxpayers
Almost $100 Billion in FY 2012, Cato Report Finds
By Sabrina Gladstone - CNSNews.com
(CNSNews.com) – Subsidies to businesses in the federal budget in Fiscal Year 2012 cost taxpayers almost $100 billion, according to a new report from the Cato Institute.
"That includes direct and indirect subsidies to small businesses, large corporations, and industry organizations," the libertarian think-tank said in its latest policy analysis.
The subsidies are handed out from programs in many federal departments, including the departments of Agriculture, Commerce, Energy, and Housing and Urban Development, the report noted.
Hard Times Generation: Families living in cars
Scott Pelley brings "60 Minutes" cameras back to central Florida to document another form of family homelessness: kids and their parents forced to live in cars.
The less productive U.S. economy
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — After a brief pick-up due to "overfiring," the trend in productivity is heading in one direction: down.
And from a job's perspective, thank goodness for that.
"The only reason 1.7% GDP growth can go with 1% jobs growth, is because productivity growth is less than 1%," said Northwestern University economics professor Robert Gordon, who is one of the world's foremost experts in the field.
175,000 Fewer Women Held Jobs in July;
94,000 Dropped Out of Labor Force
By Terence P. Jeffrey - CNSNews.com
(CNSNews.com) - 175,000 fewer American women held jobs in July than in June, according to employment data released today by the Bureau of Labor Statistics.
By contrast, the number of men who held jobs declined by only 20,000 from June to July, according to BLS.
The Employment Rate In The United States
Is Lower Than It Was During The Last Recession
By Michael Snyder - TheEconomicCollapseBlog.com
Did you know that a smaller percentage of Americans are working today than when the last recession supposedly ended? But you won't hear about this on the mainstream news. Instead, the mainstream media obsesses over the highly politicized and highly manipulated "unemployment rate". The media is buzzing about how "163,000 new jobs" were added in July but the unemployment rate went up to "8.254%". Sadly, those numbers are quite misleading. According to the Bureau of Labor Statistics, in June142,415,000 people had jobs in the United States. In July, that number declined to 142,220,000. That means that 195,000 fewer Americans were working in July than in June. But somehow that works out to "163,000 new jobs" in July. I am not exactly sure how they get that math to add up. Perhaps someone out there can explain it to me. Personally, I find that the "employment rate" gives a much clearer picture of what is actually going on in the economy. The employment to population ratio is a measure of the percentage of working age Americans that actually have jobs. When it goes up that is good. When it goes down, that is bad. In July, the employment to population ratio dropped from 58.6 percent to 58.4 percent. Overall, the percentage of working age Americans that have jobs has now been under 59 percent for 35 months in a row.
Say Goodbye to Social Security
by ROB URIE - CounterPunch.org
In a New York Times editorial (link) written in 1993 the late economist John Kenneth Galbraith made a point that seems to have been lost on subsequent generations—many in the economic elite benefit from the destitution of others. Even more to the point, activist government could put the unemployed back to work tomorrow, but at a cost to the elite. By tying economic policies long known to work to competing economic interests, Dr. Galbraith explained the current conundrum. Economies in the West aren't working because a small economic elite benefits from this state of affairs.
Caterpillar to unions: Drop dead
By Steven Pearlstein - WashingtonPost.com
For decades, executives at unionized companies have harbored the fantasy that they could dictate the wages, benefits and working conditions of their employees, just like non-union firms. What stood in their way was the unions' ability to mount a strike that would prove more costly than paying above-market compensation. In the language of economics, the strike gave workers market power.
Now, at a hydraulics plant in Joliet, Ill., this corporate fantasy is about to become economic reality. Thanks to globalization, declining union density and years of chipping away at labor laws, Caterpillar is set to prove that even unionized companies can operate as if they have no union at all.
House GOP:
Uncertainty over Post Office finances delaying reforms
By Bernie Becker - TheHill.com
The House has left Washington without passing a fix to the Postal Service, and Republicans now say they are not likely to bring the issue to the floor until after November's elections.
House Republicans acknowledge that postal reform could be a tough vote for some of their members, with the issue not breaking down as cleanly along ideological lines as subjects such as the Bush-era tax rates the House voted on just before leaving for recess.
$465 FOR AMNESTY:
OBAMA TO MAKE ILLEGALS LEGAL BEFORE ELECTION DAY
by JOHN NOLTE - Breitbart.com
There's no question America's immigration policy, especially with respect to Mexico, is a mess and in need of reform. The lines are too long and the process is something Kafka might have designed. And as someone who would definitely sneak across any border if it meant a better life for myself and my wife in America, I have no desire to deport the illegals currently among us who have stayed out of trouble and truly embraced the American dream. There's a way to make this work (but only after we forever seal the border).
But as someone married to a woman born in Mexico, who as a young woman waited in line and followed the law to earn a citizenship she cherishes more than almost anything -- the thought of allowing line-jumpers is maddening enough. But for Obama to do this for divisive, cynical, political reasons -- that he is CHOOSING to ignore the law of the land he swore an oath to uphold -- is perfectly outrageous.
Another "stroke of the pen... law of the land" - NOT "kinda cool". After defeat of Senate cybersecurity bill,
Obama weighs executive-order option
By Brendan Sasso - TheHill.com
Senate Republicans recently blocked cybersecurity legislation, but the issue might not be dead after all.
The White House hasn't ruled out issuing an executive order to strengthen the nation's defenses against cyber attacks if Congress refuses to act.
"In the wake of Congressional inaction and Republican stall tactics, unfortunately, we will continue to be hamstrung by outdated and inadequate statutory authorities that the legislation would have fixed," White House Press Secretary Jay Carney said in an emailed response to whether the president is considering a cybersecurity order.
GOV. BOBBY JINDAL MAKES THE OBAMA/
OCCUPY WALL STREET CONNECTION
by LEE STRANAHAN - Breitbart.com
Louisiana Governor Bobby Jindal delivered a blistering attack on President Obama, saying that he believed the President showed the same thinking as the Occupy Wall Street movement. Jindal delivered the remarks to a receptive crowd at RedState Gathering 2012 in Jacksonville, Florida on Saturday.
In a statement to Breitbart News, Gov. Jindal echoed his remarks in the speech, saying:
I think this election is about two different views of America's future and the President's view--where he talks about class warfare and dividing us--to me, sounds a lot like Occupy Wall Street, where people believe they are entitled to each other's property. I think the American Dream is different from that. I think in America, you're not entitled to equal outcomes. You are entitled to equal opportunity. And that is what I think this election is really about, to preserve that American Dream for our children, and the way to do that is not through more government spending, more taxes, more borrowing. Instead, it's about going back to a limited federal government that lives within its means.
Obama Handed the Ball to China
When he Rejected Keystone XL
By Joao Peixe - OilPrice.com
US dreams of energy security involve the easy access to abundant oil and gas sources both domestically, and also from its neighbours.
With its huge oil reserves, Canada is the most important of those neighbours. So did President Obama drop a ball when rejecting plans for the Keystone XL Pipeline?
Well, he didn't so much as drop the ball as hand it straight to China.
If China manage to get a decent foothold in Canada's oil sands it could prove very worrying to the US and their energy dreams. Yet we can't blame Canada, they only want to sell their oil, and they did come to the US first.
Sugar: The Bitter Truth
NEW series with Dr. Lustig "The Skinny on Obesity.
Robert H. Lustig, MD, UCSF Professor of Pediatrics in the Division of Endocrinology, explores the damage caused by sugary foods. He argues that fructose (too much) and fiber (not enough) appear to be cornerstones of the obesity epidemic through their effects on insulin. Series: UCSF Mini Medical School for the Public [7/2009] [Health and Medicine] [Show ID: 16717]
Curiosity rover to touch down on Mars Car-sized probe targets red planet surface in $2.5 billion mission
By Steve Gelsi, MarketWatch.com
NEW YORK (MarketWatch) — The U.S. National Aeronautics and Space Administration expects its car-sized Curiosity rover to touch down on the surface of Mars early Monday Eastern in a milestone for NASA.
The $2.5 billion mission was being hailed as possibly the biggest, boldest extraterrestrial landing for NASA since Apollo 11 touched down on the moon in 1969, CNet reported Sunday.
NASA officials refer to the "seven minutes of terror" of landing the craft.
Acorn Insider Becomes Whistleblower
On Obama Campaign Fraud
by Alan Bates, MD.
The following two links feature a speech by Anita Moncrief at CPAC. She was a devout liberal Democrat who worked inside ACORN during the Obama campaign until she discovered the fraudulent criminal actions of the Left's campaign carried out through Project Vote, the voter registration arm of ACORN, along with the collusion of ABC, CNN and the New York Times in shielding Americans from the truth provided to them by Ms. Moncrief. Project Vote continues to operate in America today as it prepares to defraud American voters of the upcoming election, while the same socialist media organizations still collude to protect the ideological objectives of the radical anti-American Left. You will find this speech most informative. Please pass on to your contacts.
Kochs Take Tip From Soros Investing In Voter Registration
By Julie Bykowicz - Bloomberg.com
The door-knockers wearing matching T- shirts and carrying electronic tablets loaded with maps and survey scripts fanned out on a recent evening across Hillsborough County, a Floridaenclave that has backed the winning presidential candidate in each of the last three elections.
Their mission: Find residents who share the small- government philosophy of Americans for Prosperity, a nonprofit group founded by billionaire industrialists and Republican donors Charles and David Koch.
7 killed, including gunman,
in shooting at Wisconsin Sikh temple
By Jerry Markon - WashingtonPost.com
A gunman shot and killed six people at a Sikh temple near Milwaukee on Sunday morning before being gunned down by police outside the building, authorities said.
The suspect, who has not been identified, killed four people inside the Sikh Temple of Wisconsin in Oak Creek and two more outside, Greenfield Police Chief Bradley Wentlandt told reporters at a briefing. He was then shot by an officer and is presumed dead, Wentlandt said.
Sikh temple shooting: at least six worshippers killed in Wisconsin Suspected gunman shot dead by police officer who was critically wounded amid initial fears of a second gunman
By Matt Williams in New York - Guardian.co.uk
At least six people were killed and more wounded when a gunman opened fire on worshippers at a Sikh temple in the US.
The shooting took place shortly before 10.30am local time at a place of worship in Oak Creek, south of Milwaukee, Wisconsin.
Police said the gunman was shot by an officer who enagaged him in fire immediately after arriving on the scene. The officer was hit several times, but was able to return fire. The suspect is believed to have died, and the officer was taken to hospital, where he is critically ill.
Sunni Muslim 'Extremists'
Committed 70% of Terrorist Murders in 2011
By Edwin Mora - CNSNews.com
(CNSNews.com) - Sunni Muslim terrorists committed "about 70 percent" of the 12,533 terrorist murders in the world last year, according to a report by the National Counterterrorism Center (NCTC).
The information comes from the 2011NCTC Report on Terrorism, which is based on information available as of March 12, 2012.
"Sunni extremists accounted for the greatest number of terrorist attacks and fatalities for the third consecutive year," the report says. "More than 5,700 incidents were attributed to Sunni extremists, accounting for nearly 56 percent of all attacks and about 70 percent of all fatalities."
Completely Surrounded By Psychopaths And Sociopaths
As We Approach The Edge Of Societal Collapse
By Michael Snyder - EndOfTheAmericanDream.com
Do you remember when America was a place where you could attend a public gathering without having to worry if a sociopath was going to set off a bomb or start wildly shooting people? Do you remember when America was a place where you could walk down the street without having to worry that a vicious pack of teens might attack you for no reason whatsoever? Do you remember when America was a place where you could leave your car unlocked, your house unlocked and your garage open without having to worry about thieves? Well, only old timers are likely to remember a time when you could leave your front door unlocked, but it was once like that in America. Over the past 50 years America has fundamentally changed. Once upon a time you could trust just about everybody, but these days it is difficult to find anyone that you can truly trust. We are literally surrounded by psychopaths and sociopaths as we approach the edge of societal collapse. The truly frightening thing is that we are watching society break down rapidly even though economic conditions are still relatively good. If this is how bad things are right now, what are they going to look like after the economy collapses and people become really desperate?
Radioactive cesium found in Japan's fish, seawater
RT.com
Harmless traces of radioactive cesium have been discovered in fish and seawater in several areas of Japan, as the country continues to debate whether their fish is safe to consume and anti-nuke protests grow in the wake of the Fukushima disaster.
Japan's Ministry of Education, Culture, Sports, Science and Technology (MEXT) stated that radioactive cesium, presumably from the crippled Fukushima I nuclear plant, was found in seawater and fish in several regions of the country, Russian news agency Itar-Tass reported from Tokyo.
The aquatic radiation was detected in central Japan (Shizuoka Prefecture), the western part of central Honshu (Niigata) and the country's northeast (Iwate).
Huge Finds in the Mediterranean
Mean Israel is Overflowing in Natural Gas
By Joao Peixe - OilPrice.com
Ever since its foundation as an autonomous state in 1948, Israel has relied on imported energy to meet its domestic power demands. However offshore exploration operations have now found giant natural gas fields able to supply the country with more gas than it can use.
Noble Energy Inc, Delek Group Ltd, and a few other companies have announced finds in the Mediterranean Sea that hold enough natural gas to supply Israel's energy needs for 150 years.
Iran warns against foreign intervention in Syria
Reuters - The DailyStar.com.lb [Lebanon]
DUBAI: Iran warned against foreign intervention in Syria on Sunday and said the conflict there could engulf Israel, Iranian media said.
Iran's Parliament Speaker Ali Larijani accused the United States and regional countries he did not name of providing military support to rebels fighting to topple Syrian President Bashar al-Assad, an ally of Iran.
Syria has accused Turkey, Qatar and Saudi Arabia of backing rebels in Syria and fuelling violence there. Iran has supported Assad's efforts to crush the 17-month revolt and has accused Western countries and Israel of interfering in the crisis.
Pilgrims or mercenaries? Iran asks Turkey,
Qatar for help freeing captured nationals in Syria
RT.com
Tehran has asked Turkey and Qatar to help secure the release of Iranian nationals kidnapped in the Syrian capital Damascus on Saturday. The Free Syrian Army claimed the Iranians were members of the elite Iranian Revolutionary Guard.
The pilgrims were traveling from Damascus to the Sayeda Zeinab mosque, a holy shrine for Shia Muslims located in a southern suburb, Iran's state-owned al-Alam TV station said.
"Terrorists affiliated to the so-called Free Army are in charge of the abduction of the Iranian pilgrims," a Syrian government official told Fars.
Iran says the Free Syrian Army is responsible for the kidnapping.
Iran warns Syria conflict could engulf Israel Iran parliament speaker Larijani warns against foreign intervention in Syria, accuses US of providing military support to rebels.
By REUTERS - JPost.com
DUBAI - Iran said Sunday that the conflict in Syria could engulf Israel, as it warned against foreign intervention there, Iranian media reported.
"The fire that has been ignited in Syria will take the fearful (Israelis) with it," Iran Parliament Speaker Ali Larijani said on Sunday, according to the Islamic Republic News Agency (IRNA).
Syria's agony prolonged while
Russia and America pursue regional agendas Superpowers line up with different Middle East neighbours to jostle for influence as Syrian bloodshed continues
By Peter Beaumont, foreign affairs editor - Guardian.co.uk
Kofi Annan, who has resigned as the United Nations and Arab League special envoy on Syria, has had a bad press in certain quarters of late. Whether the plan that bears his name – to bring a halt to the killing and a political transition – was ever realistic in the first place, Annan, at least, was honest in his efforts to bring an end to the violence without widening the conflict.
Annan has been criticised for his past history, largely by those whose default is to prefer intervention over talking. He has been criticised, too, for the style of his meetings with President Bashar al-Assad, ignoring the fact that his role was a diplomatic one, not to deliver a non-existent ultimatum. That Assad, with the support of Russia and China, has resisted Annan's overtures can hardly be laid at his door.
Saudi invites Iran for extraordinary Muslim summit
AFP - The DailyStar.com.lb [Lebanon]
RIYADH: Saudi King Abdullah invited Iranian President Mahmoud Ahmadinejad for an extraordinary summit of Muslim leaders to be held this month in the holy city of Mecca, state news agency SPA reported Sunday.
The Saudi monarch "sent a written letter to President Mahmoud Ahmadinejad inviting him to attend the extraordinary Islamic solidarity meeting which will be held in Mecca" in mid-August, SPA reported.
Collapse or decentralization for Syria?
By Rami G. Khouri - The DailyStar.com.lb [Lebanon]
Amid the many scenarios for Syria are two widely discussed possibilities: that President Bashar Assad will respond to his imminent collapse by retreating with his Alawite compatriots to an Alawite mini-state in the northwestern coastal area of Syria; and that Syria will fragment into a series of smaller entities based on ethnicity and religion – Kurdish, Druze, Alawite, Sunni, Christian and so on.
I suspect that both of these dire expectations are wrong, though each carries within it a hint of what is possible, not only for Syria but also for much of the Arab world. In between the centralized police and welfare state and a collapse into fragmented ethnic statelets may be a more feasible and appropriate third way, one that is based on strong decentralization of regional power and identity within a looser national superstructure.
Saturday... War for Aleppo:
battle rages in city that will determine fate of Syria Skirmishes have broken out in Aleppo as rebels pour in to confront regime loyalists in what will be a decisive clash
By Martin Chulov in Aleppo - Guardian.co.uk
The pitched battle for Syria's oldest city was edging ever closer to its ancient heart on Saturday, with skirmishes flaring near world-renowned landmarks and once impregnable pillars of state control.
Monuments and security buildings stand cheek-by-jowl in Aleppo, a city of huge importance to the Syrian uprising, where a grand, 1,000-year-old citadel stands not far from a much-feared interrogation dungeon. Yesterday jets were bombing the centre of the city, barely a mile away from the citadel.
Sunday... Aleppo rebels wait anxiously
for Bashar al-Assad's elite to attack Coming days likely to be decisive as Syria army reinforcements rumoured to be making their way towards city
By Martin Chulov in Aleppo - Guardian.co.uk
From where he sits behind the headmaster's desk in an old school house, the battle for northern Aleppo is going better than expected. But as artillery shells and heavy rounds from a circling helicopter thundered ever closer into nearby buildings on Sunday, Abu Suleiman, the commander of rebel operations in the north of the city, seemed to waver. "I expected that we'd get to this point in close to two weeks," he said. "But the coming days will be the most important of the revolution."
Aleppo is now undeniably a city at war. Crippling petrol shortages have reduced traffic by around 90%; festering garbage bags are now piled so high that they resemble road blocks; and the few people who brave the city's foreboding streets do so with one eye to the ground and the other tilted towards the ever-present circling attack helicopters.
Assad's artillery, planes pound Syria's Aleppo Syria forces attack rebel frontline in Salaheddine district; jets bombard Damascus as onslaught continues, resident says.
By REUTERS - JPost.com
ALEPPO - Syrian President Bashar Assad's forces used artillery, planes and a helicopter gunship to pound rebel positions in Syria's biggest city, witnesses said, in a battle that could determine the outcome of the 17-month uprising.
After UN Security Council paralysis on Syria forced peace envoy Kofi Annan to resign last week, and with his ceasefire plan a distant memory, rebels were battered on Saturday by the onslaught they had expected in Aleppo and the capital Damascus.
San Bernardino, California, Files Chapter 9 Bankruptcy
By Steven Church, Dawn McCarty
and Michael Bathon - Bloomberg.com
San Bernardino, California, filed for municipal bankruptcy after disclosing a $46 million shortfall in the city's budget, the third California city to seek court protection from creditors since June 28.
California cities from the Mexican border to San Francisco Bay are confronting rising pension costs as they contend with growing unemployment and declining property - and sales-tax revenue. The costs stem from decisions made when stock markets were soaring and retirement funds were running surpluses.
Police Chief's $204,000 Pension Shows How Cities Crashed
By Alison Vekshin, James Nash and Rodney Yap - Bloomberg.com
Stockton, California, Police Chief Tom Morris was supposed to bring stability to law enforcement when he was appointed to the job four years ago.
He lasted eight months and left the now-bankrupt city at age 52 with an annual pension that pays more than $204,000 -- the third of four chiefs who stayed in the position for less than three years and retired with an average of 92 percent of their final salaries.
Understanding the Post Office's Benefits Mess
By Josh Barro - Bloomberg.com
Yesterday, the United States Postal Service admitted that it will miss a legally required $5.5 billion payment toward pre-funding its promised health-care benefits for retirees. But is this even a cost the USPS should have to cover? The answer, unfortunately, is "sort of." Here's why -- and what we should do about it.
Imagine you have a company with only one employee, Steve. If Steve earns a salary of $50,000 and receives no benefits, you have to pay him cash in the current period and reflect the whole $50,000 as an expense.
Bernanke out of bullets Bernanke Is Bluffing
By Peter Morici -TheStreet.com
NEW YORK (TheStreet) -- On Wednesday the Federal Reserve indicated it will take further steps as necessary to promote a stronger economic recovery. Sadly, the Fed's bullets are spent, and the U.S. economy is skidding as a result of Obama Administration missteps.
The economy is growing at less than 2%. Unemployment holds steady at 8.2% only because so many folks have quit looking for work and are no longer counted in the official tally of joblessness.
The Federal Reserve Is Naked Unemployment is above target and inflation is below target, and the Fed is doing nothing. What?
By Matthew O'Brien - TheAtlantic.com
Psst, Ben Bernanke. This is kind of awkward ... but we can tell that you have no clothes.
The Fed's intellectual nakedness has been apparent for awhile now. The past few months it has said that it expects unemployment to stay above target and inflation below target, so it will do nothing. But it might do something if things get worse -- and by "worse", it means that things stay as bad as they already are. If you're wondering why things being this bad in the future would justify action, but things being this bad now doesn't, you are not alone.
Global Gold prices end slightly lower
as FOMC produces no QE3
NEW YORK (Commodity Online): Global gold prices dropped in electronic trade on Wednesday after the Federal Reserve left interest rates unchanged and maintained that it sees interest rates low through late-2014.
Comex gold futures prices also ended the U.S. day session slightly lower on Wednesday and then extended those losses slightly in the wake of the release of the FOMC statement from the Federal Reserve.
Priced For Collapse
By Peter Schiff - GoldSeek.com
Where is the gold price today? If you're like many Americans, you have no idea whether it went up, down, or sideways. Fortunately, I know my readers to be more informed - you likely know that after falling from almost $1900, gold has been trapped around $1600 since early May. But you may still be curious why despite continued money-printing and abysmal US economic reports, gold hasn't been able to hit new highs.
Here's the truth: gold is currently priced for collapse. Many investors believe the yellow metal has topped out and are selling into every rally.
....The key to this market is to understand that a price collapse is coming - but not for gold. Instead, the market for US dollars and dollar-denominated debt is headed off a cliff, which will send the price of precious metals soaring.
Gold and silver facing an exceptionally volatile autumn?
By: Peter Cooper - GoldSeek.com
Gold and silver investors are coming through the normal summer lows in prices and there are some nice price gains already from these summer lows.
Autumn is traditionally the best season for precious metal prices. Gold hit an all-time high of $1,923 on September 6th last year before a sharp correction. We could well see a similar pattern this year, only perhaps with even greater volatility.
Silver Suffers the Most from Bernanke
BY CHRIS VERMEULEN - FinancialSense.com
While the exchange traded funds for gold and copper fell today due to investors expressing disappoint at the modest response of the Federal Reserve to declining economic growth, it was silver that was off the most.
SPDR Gold Shares (GLD) fell in trading today by 0.89%. IPath Dow Jones Copper (JJC) dropped 1.89%. Plunging the deepest was iShares Silver Trust (SLV), off by 2.14%.
Six-week stimulus watch for Bernanke and Fed
By Ann Saphir and Jonathan Spicer
CHICAGO/NEW YORK | Thu Aug 2, 2012 4:05am EDT
(Reuters) - Federal Reserve Chairman Ben Bernanke looks set to spend the rest of the summer waiting for signs that could tip the scales toward providing another round of stimulus for economy.
On Wednesday, the U.S. central bank stopped short of resorting to new measures but signaled it was prepared to act unless the economy stages an unlikely comeback in the next six weeks.
Pimco's El-Erian Says World In Serious Slowdown
By Rich Miller - Bloomberg.com
Pacific Investment Management Co.'s Mohamed El-Erian called recent declines in purchasing manager indexes in Europe and Asia "frightening" and said the world economy is suffering its severest slowdown since the global recession ended in 2009.
El-Erian, who is chief executive officer of the Newport Beach, California-based Pimco, predicted global growth of 2.25 percent over the next 12 months. That's down from the 3.9 percent in 2011 and 5.3 percent in 2010 recorded by the International Monetary Fund. The world economy contracted 0.6 percent in 2009.
Mr. Global Economy's delusional mental state Shaky psychology accompanies physical decline
By Satyajit Das
SYDNEY (MarketWatch) — Dear Doctor: As requested, I have assessed the psychological condition of Mr. Global Economy, complementing earlier physical examinations.
Mr. Economy appears delusional, believing complete recovery is imminent. Keynesian and Monetarist regimes, he believes, will boost demand and create sufficient inflation to bring his elevated debt levels under control. Read more: Mr. Global Economy's physical report card.
Conflicts & Pressure Points
By: Jim Willie - GoldSeek.com
Some extremely powerful differentials in power are setting themselves up, in a manner never seen before in modern history. Those who dismiss the uniqueness of the situation are those who continually are surprised by events as they unfold. The pressure features the managers of the system, complete with corruption and fraud with official coverups in a never-ending sequence of crime scenes, pitted against the forces of justice and fair markets. Not a single fair market exists in USDollar terms. In pure Orwellian style, every single market has a US-based or London-based financial engineer at a control panel doing duty in price intervention. The Western defenders of the syndicate do not wish for the price structure to reflect the reality of physical shortage or the bounty of paper-based surplus, for the currencies to reflect true toxic value, and for the discovery price systems to reflect the raids of private accounts. The system is broken, and the pressure is building.
Keiser Report:
Capital Punishment for Crimes Against Capital (E322)
In this episode, Max Keiser and Stacy Herbert discuss crimes against capital, financial blockades and hoax Op-eds. They also suggest that Boris Johnson may be the illegitimate step nephew of Louis XV and how all your financial opinions come from a warped fortune cookie written by some guy that just dropped massive tabs of acid. And they discuss this while minding their Second Amendment right to bear a shoulder launch missile. In the second half, Max interviews Birgitta Jonsdottir about the need to form Pirate Parties around the world to protect privacy, democracy and stop financial blockades of certain groups for their beliefs and campaigns.
Mario Continues His Game of Chicken
BY BILL FLECKENSTEIN - FinancialSense.com
Today's market action is a tale of Before-and-After-Mario-Draghi, a.k.a. "B.D." and "P.D." After the ECB basically said it wouldn't do anything new, Draghi in his press conference uttered a lot of brave words, not the least of which was the phrase, "it is pointless to bet against the euro." Besides that, and hints at potential future action to come, he didn't back up last week's bravado with anything concrete.
The real question is, was he silly enough last week to just pop off and think he was going to be able to jawbone markets to where he wanted them, or is he now just buying time? Because doing the sorts of things required to get the ECB to mimic the Fed is going to take a while.
Markets crumble as Draghi bond plan deemed too vague The European Central Bank has opened the door to a blitz of bond purchases and fully-fledged quantitative easing in a radical shift of policy, but only once Europe's leaders have activated their own rescue machinery.
By Ambrose Evans-Pritchard - Telegraph.co.uk
Mario Draghi, the ECB's president, said the bank may "undertake outright open market operations" to cap borrowing costs in those countries pushing through reforms. Intervention will be of "adequate size" to fulfil the task.
"These are very strong words," said Julian Callow from Barclays Capital. "Draghi has made it clear that the ECB is preparing to buy Spanish and Italian bonds on a much bigger scale. This is the thin end of the wedge for QE and marks a turning point in the crisis."
Gloves Off In Draghi-Weidmann Clash Over Bond Purchases
By Jana Randow and Gabi Thesing - Bloomberg.com
When Mario Draghi took the helm of the European Central Bank nine months ago, he took care not to alienate Bundesbank President Jens Weidmann. Now the gloves are coming off.
Draghi yesterday announced the ECB is working on a plan to re-enter bond markets and took the unusual step of naming Weidmann as the only policy maker to object to the proposal. While the move would ratchet up the ECB's response to Europe's debt crisis, it risks isolating the German central bank, potentially undermining the effectiveness of the new measures.
Draghi, Merkel & Hollande... vs. Deutsche Bundesbank?
BY MONTY GUILD WITH TONY DANAHER - FinancialSense.com
Last Thursday the 26th, ECB President Mario Draghi assured concerned Europeans that all necessary measures would be followed to buoy and protect the Euro. In his own already-famous words:
"Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro, and believe me: it will be enough..."
Unsurprisingly, German Chancellor Angela Merkel and French President François Hollande immediately threw their weight behind Draghi's pledge. In effect, they endorsed the ability of the ECB to use the printing press to create money with which to buy the bonds of beleaguered nations. Also as expected, German Finance Minister Wolfgang Schäuble signaled his support.
Draghi allows time for eurozone politics
to prepare for Spanish bail-out Investors threw up their hands in despair today after deciding Mario Draghi had let them down. But markets have consistently failed to read the Draghi runes accurately.
By Damian Reece - Telegraph.co.uk
Last week there was euphoria when the European Central Bank boss promised "to do whatever it takes to preserve the euro" but qualified that with the prefix "within our mandate" which was a clear warning markets would need to be patient and not expect too much. The ECB's mandate is debatable at the very least when it comes to intervening in sovereign debt and Draghi knows that.
But that crucial qualification was ignored, replaced by an assumption that a big bazooka would be deployed by today and billions shot out to lower sovereign borrowing costs and soothe the single currency.
Mario Draghi's Guns of August
By Kemal Derviş - Project-Syndicate.org
WASHINGTON, DC – August has been a dangerous month in European history, but this year it could be the turning point for the eurozone – and perhaps for the world economy. On July 26, Mario Draghi, President of the European Central Bank, declared that his institution would do "whatever it takes" to preserve the euro, and added: "Believe me, it will be enough."
Draghi's strong – indeed, unprecedented – statement was widely interpreted as signaling that the ECB would soon revive its bond-purchase program, focusing on Spanish debt in particular. Stock markets around the world soared. Jens Weidemann of the Bundesbank immediately expressed reservations, but the next day German Chancellor Angela Merkel and French President François Hollande issued a joint statement expressing their determination "to do everything in order to protect the eurozone."
A Hint From Draghi on the Euro?
BY BRUCE KRASTING - FinancialSense.com
So Mr. D spoke and said nothing at all. Those that expected a "big stick" from the boss at the ECB are very disappointed. The initial market reaction to this dud is a down move in equities and the Euro while Italian and Spanish yields soar. Given the high expectations Draghi set the market up for, I can't imagine a worse outcome.
I read through the (very carefully worded) press release looking for something. There are few sentences that have me wondering. The first comes from the summary section where Draghi says: decisive and urgent steps need to be taken to improve competitiveness
Okay, that sounds nice. But what does Draghi mean when he says "competitiveness"? Does he mean between Spain and Germany? Maybe.
A Grand Plan to Save Italy from Collapse
BY UGO BARDI - FinancialSense.com
Yesterday, Mr. Angelino Alfano, leader of the "People of Freedom" (PdL) party, publicly presented a plan aimed at saving Italy from economic collapse. When he spoke, I was driving along the highway and by chance my radio was tuned on a channel that aired the presentation. I had nothing else to do, so I listened to the whole thing. And I was horrified.
Let me explain. This note is not supposed to be against a specific politician or against a specific party. Mr. Alfano is the successor of Mr. Berlusconi as leader of PdL and to him I recognize the ability of speaking in a series of vaguely intelligible sentences. That's already a notch above a good number of his colleagues. What horrified me is that what he said could have been said by any politician, left or right, conservative or liberal anywhere in the world. And that explains why we are in trouble.
ECB expected to buy Spanish and Italian bonds
BY VALENTINA POP - EUObserver.com
BRUSSELS - The European Central Bank (ECB) board is meeting on Thursday (2 August) in Frankfurt amid high hopes from investors that it will deliver on what its chief suggested last week: a forceful intervention to help out Italy and Spain.
But Germany's central bank is against the move.
ECB chief Mario Draghi last week said the bank would do "whatever it takes" to support the euro, adding "Believe me, it will be enough."
He specifically mentioned a controversial bond buying programme that last year helped bring down Spain and Italy's borrowing costs.
Romney: EU should look to Poland for economic model
BY ANDREW RETTMAN - EUObserver.com
BRUSSELS - US presidential candidate Mitt Romney has described Poland as an economic model for Europe in the financial crisis.
Speaking at the Warsaw University Library in the Polish capital on Tuesday (31 July) he said: "Today, as some wonder about the way forward out of economic recession and fiscal crisis, the answer ... is 'Look to Poland'."
He noted that the Polish economy "last year outperformed all other nations in Europe."
He attributed Polish growth to its embrace of free market capitalism and budgetary discipline.
Corn's 60% Surge Is More Dangerous Than Euro Mess
By William Pesek - Bloomberg.com
If Jim Yong Kim was hoping for a honeymoon, the new World Bank president can forget it: To his headaches over Europe's debt crisis he can add surging food prices.
Kim's first month on the job was largely about gauging how Europe is affecting the plight of the poor. There are troubling signs that China and India are slowing, and that might leave Asia, which has the largest share of extreme poverty, devoid of growth engines.
China Central Bank To Maintain 'Prudent' Monetary Policy
By Bloomberg News - Bloomberg.com
China's central bank said it will keep pursuing a "prudent" monetary policy and the nation's economy will maintain stable growth even amid the risk the global recovery will falter.
China will conduct policy fine-tuning at an appropriate time and consumer inflation may rebound after August, the People's Bank of China said in a quarterly monetary-policy report on its website yesterday. The yuan exchange rate will be kept "basically stable," the Beijing-based central bank said.
Judge Napolitano: "LIBOR Scandal One of the Largest Bank Orchestrated Frauds in History"
The Department of Justice is reportedly deciding whether to charge banks over growing LIBOR interest rate fixes. The international investment bank Barclays Capital has already paid $450 million in fines for illegally manipulating the rates that banks charge each other to borrow money. That rate affects everything from credit cards to car loans and mortgage rates. Shepard Smith reported that it remains to be seen whether Treasury Secretary Timothy Geithner knew about the rate manipulation when he was head of the Federal Reserve Bank of New York.
Judge Andrew Napolitano explained the importance of the LIBOR interest rate, saying, "Think of it this way, the biggest banks in London each morning announce what they're going to charge each other for money and that number is averaged ... Whatever that rate is, is the baseline for millions of other loans and mortgages around the country."
The Politicized Economy: A Faustian Bargain
BY DAVID GALLAND - FinancialSense.com
In the second half of his classic play, Faust, Johann Wolfgang von Goethe (goo-tah) describes a pact made with the devil by a young scholar named Faust, whereby the devil agrees to save an empire that is in a state of collapse due to overspending.
The devil's solution, enthusiastically embraced by the empire's rulers, is to adopt a Fiat currency based on the idea that within the dirt of the empire there is a sufficient amount of un-mined gold to back the issance of unlimited amounts of money.
Knight Has 'All Hands On Deck' After $440 Million Bug
By Whitney Kisling - Bloomberg.com
Knight Capital Group Inc. (KCG) has "all hands on deck" and is in close contact with creditors, clients and counterparties as it tries to weather trading errors that cost it $440 million, Chief Executive Officer Thomas Joyce said.
Joyce said it's "hard to comment" on discussions with creditors as Knight stock extended a two-day plunge to 77 percent and the firm explored strategic and financial alternatives following a loss almost four times its annual profit. The problems were triggered by what Joyce called "a large bug" in software as the company, one of the largest U.S. market makers, prepared to trade with a New York Stock Exchange program catering to individual investors. Some clients refrained from doing business with the firm today.
"Audit the Fed," – Restore "Free Markets for Free People"
BY GARY DORSCH - FinancialSense.com
When will the Fed's folly and madness come to an end? Perhaps next year, we'll begin to see big changes at the Federal Reserve, including the sacking of Fed chief Ben Bernanke, and his henchmen of addicted money printers, who have tossed aside the notion of "Moral Hazard," a long time ago, and instead, are engaging in "financial repression" in the bond markets, and the rigging of the stock market, much to the chagrin of believers in free markets. However, in order for this shake-up at the Fed to occur, the Republican Party would have to beat the odds, by capturing the White House, and majorities in both chambers of Congress.
Mainstream Reporter Tells The Truth About Audit The Fed And The Creation Of The Federal Reserve
By Michael Snyder - TheEconomicCollapseBlog.com
When someone in the mainstream media goes out on a limb to tell the truth, then the rest of us should go out of our way to applaud that effort. Reporter Ben Swann of Fox 19 in Cincinnati is one of the few local television reporters in the United States that consistently tackles the tough issues. As you can see from his "Reality Check" archives, he regularly does reports on the Federal Reserve, the emerging police state, the loss of our freedoms and liberties, the advance of globalism, the economic collapse, political corruption, etc. etc. That is one reason why his YouTube channel is rapidly approaching a million views. In his most recent Reality Check, Ben Swann asked this question: "Is auditing the Federal Reserve really necessary?" In just four minutes, Swann covered the creation of the Federal Reserve, where money comes from, the 16 trillion dollars in secret loans given out by the Fed during the last financial crisis, and why an audit of the Fed is so important. It really was extraordinary to watch a local mainstream news reporter tell the truth about these things. We could definitely use about 1000 more reporters just like him.
Unintended Consequences of Well-Intended Policies
By Dr. Lacy Hunt for Casey Research - FinancialSense.com
In the early 1960s, when JFK was in the White House and William McChesney Martin was Fed chairman, Keynesian economics was in full bloom. One of its major tenets is the Phillips Curve, which posits a stable inverse relationship between the rate of inflation and the unemployment rate. Yale professor James Tobin and others argued that the social outcome could be improved by a more activist monetary and fiscal policy. Specifically, they contended that the unemployment rate could be lowered while only resulting in slightly higher inflation.
Conversations With History - General John Abizaid
The Military in the Post 9/11 World - Recorded March 12, 2008
General John Philip Abizaid,U.S. Army,(ret.), Commander of the U.S. Central Command (2003-2007)
Conversations host Harry Kreisler welcomes General John Abizaid for a discussion of the role of the military in the 21st century. Drawing on his experience as commander of the U.S. Central Command, he discusses the problems confronting the next President in the Middle East. He analyzes the lessons of the Iraq War and reflects on issues such as intelligence, the Geneva Conventions, and the role of military contractors.
Only 24.6 Percent Of All Jobs
In The United States Are Good Jobs
By Michael Snyder - EndOftheAmericanDream.com
Do you want to know why it seems like good jobs are very rare in the United States today? It is because good jobs are very rare in the United States today. According to a paper that was just released by the Center for Economic and Policy Research, only 24.6 percent of all American jobs qualified as "good jobs" in 2010. Over the past several decades, there has been increasing pressure on corporations to reduce expenses and increase corporate profits. One of the biggest expenses that any corporation faces is labor. Large corporations all over the globe are in an endless race to gain a competitive advantage by pushing labor costs as low as possible. Sometimes this is done by using technology. Computers, automation, robotics and other forms of technology have eliminated millions of jobs in the United States and those jobs are never coming back. Millions of other jobs have been eliminated by offshoring. In our globalized economy, American workers have been merged into one giant labor pool with everyone else. That makes it very tempting for big corporations to move jobs from areas where workers are very expensive (such as the United States) to areas of the world where it is legal to pay slave labor wages. When big corporations do this, corporate profits go up, but the number of good jobs in the United States goes down. As a result, there is increased competition for the jobs that remain in the United States and this drives down wages. Meanwhile, the cost of living just keeps going up. So millions of American families have fallen into poverty in recent years, and millions of others have gone deep into debt in an attempt to survive. This dynamic is absolutely shredding the middle class in the United States.
Economic data underscores weakening activity
By Lucia Mutikani
WASHINGTON | Thu Aug 2, 2012 4:37pm EDT
(Reuters) - The number of Americans filing new claims for jobless benefits rose last week and manufacturers suffered an unexpected drop in orders in June, suggesting the economy is struggling to break out of a soft patch.
The economy has lost momentum in recent months, hurt by fears of higher taxes and sharp government spending cuts next year and ongoing debt problems in Europe. Factory activity has cooled and job growth has braked sharply.
Facebook Stock Crash Hoses California's Tax Revenue
Henry Blodget - BusinessInsider.com
Well, the hits from the Facebook stock implosion keep coming.
Now, it's the State of California, which apparently overestimated how much tax revenue it was going to collect from Facebook employees after the IPO.
According to Bloomberg's John Erlichman, California is now saying its "tax revenue is at risk" because it assumed it would get $1.9 billion from newly enriched Facebook employees.
Watch: Why The Idea That Facebook Could Be The Next Google Is Now Laughable
Facebook Below $20? Let The Apple Bidding Begin
By Richard Saintvilus - TheStreet.com
NEW YORK (TheStreet) -- For as great a concept as social media giant Facebook is, the stock has failed to generate the support that all sound fundamental businesses enjoy. As of this writing, Facebook shares have fallen as low as $21.79, with no meaningful signs of slowing down.
The question now is, can it hold $20? If not, I think it is safe to predict that all hell might break loose. Should it lose that psychological support level, rattled investors will likely punish the stock further to $15.
IRS leader's exit worries officials amid tax uncertainty
By Patrick Temple-West
WASHINGTON | Thu Aug 2, 2012 6:07pm EDT
(Reuters) - The chief of the Internal Revenue Service is expected to step down soon and some former officials of the tax-collecting agency expressed concern on Thursday about what that means for major tax policy issues in the coming months.
Doug Shulman, who became IRS commissioner in 2008 under President George W. Bush, has said he is not interested in another five-year term. His term ends in November.
Fiscal Cliff Crisis Rooted In Senate Ploy To Pass Bush Tax Cuts
By Brendan Greeley - Bloomberg.com
In early 2001, Paul O'Neill, the new Treasury secretary, began work on a plan for radical tax reform. He wanted simpler forms and fewer deductions, which would make it easy for people to prepare their taxes and cost the government less to process them. He presented a five-inch-thick binder of research to a senior White House official.
"Don't ever let that see the light of day," O'Neill says he was told. President George W. Bushdidn't want to deliver a tax overhaul. He wanted to deliver the tax cuts he'd promised as a candidate, Bloomberg Businessweek reports in its Aug. 6 issue.
Cybersecurity Act fails Senate vote
By Ramsey Cox and Jennifer Martinez - TheHill.com
The long battle for cybersecurity legislation ended Thursday as the Senate failed to pass a motion to end debate on the bill.
The Cybersecurity Act, introduced by Sens. Joe Lieberman (I-Conn.) and Susan Collins (R-Maine), was rejected on a 52-46 vote — 60 votes were required to move forward with the legislation. The bill's collapse likely kills any legislative action on cybersecurity this year, punting efforts to 2013.
Max Keiser: Cancer is How They Will Take It All
On the Wednesday, August 1 edition the Alex Jones Show, Alex talks with former Wall Street stockbroker and filmmaker Max Keiser about the continuing implosion of the economy as the euro crisis plagues global economies, cuts factory and productive output, stimulates endemic joblessness, and the Federal Reserve warns the economy may be stuck in permanent slow growth.
They Really Do Want To Implant Microchips Into Your Brain
By Michael Snyder - EndOfTheAmericanDream.com
Are you ready to have a microchip implanted into your brain? That might not sound very appealing to you at this point, but this is exactly what the big pharmaceutical companies and the big technology companies have planned for our future. They are pumping millions of dollars into researching "cutting edge" technologies that will enable implantable microchips to greatly "enhance" our health and our lives. Of course nobody is going to force you to have a microchip implanted into your brain when they are first introduced. Initially, brain implants will be marketed as "revolutionary breakthroughs" that can cure chronic diseases and that can enable the disabled to live normal lives. When the "benefits" of such technology are demonstrated to the general public, soon most people will want to become "super-abled". Just imagine the hype that will surround these implants when people discover that you can get rid of your extra weight in a matter of days or that you can download an entire college course into your memory in just a matter of hours. The possibilities for this kind of technology are endless, and it is just a matter of time before having microchips implanted into your brain is considered to be quite common. What was once science fiction is rapidly becoming reality, and it is going to change the world forever.
VACANT DETROIT BECOMES DUMPING GROUND FOR THE DEAD
BY COREY WILLIAMS
DETROIT (AP) -- Abandoned and neglected parts of Detroit are quickly becoming dumping grounds for the bodies of murder victims. And authorities acknowledge there's little they can do.
At least a dozen bodies have turned up in 12 months, many of them purposely hidden or discarded in alleys, fields and vacant houses or garages. Seven of the dead are believed to have been slain outside Detroit and then dumped within the city.
Liberal group unveils blueprint
for second healthcare reform law
By Elise Viebeck - TheHill.com
A prominent left-leaning think tank is floating a plan for "next-generation" healthcare reform to address rising costs in the United States.
Experts at the Center for American Progress (CAP) described the proposed efficiency-based market reforms as a natural continuation of the Affordable Care Act.
"The promise of healthcare reform will only truly be kept when we are reducing healthcare costs," said CAP President Neera Tanden. "Rising costs are a drag on our national budget ... and a dramatic difficulty for families and employers."
Kari DePhillips on The Peter Schiff Show
Kari DePhillips, owner of public relations firm The Content Factory, on how ObamaCare is already slowing down her business, why she's upping and moving to New Hampshire as part of the Free State Project (www.freestateproject.org), and whether social media is truly a growth industry.
Chick-fil-A not alone in touting religion alongside products
By Joshua Rhett Miller - FOXNews.com
Chick-fil-A president Dan Cathy is not the only business tycoon who refuses to hide his faith under a bushel — top executives from some of America's biggest companies are born-again Christians who talk about their beliefs more often than their balance sheets.
Major corporations like Tyson Foods, Interstate Batteries and Hobby Lobby were either founded or are now led by outspoken and deeply religious bosses. While some of the companies distinguish between their corporate identities and their leaders' faith, others embrace it.
August 1, 2012: Crowds Support Chick-fil-A
President's Freedom of Expression
On July 18, 2012, Chick-fil-A president Dan Cathy confirmed his personal belief that marriage should be between a man and a woman. Some politicians, members of the LGBT community and those supporting other views of marriage have called for boycotting Chick-fil-A. Yet, everyday people patronize businesses, arts, films and music performed by people with a wide range of beliefs. On August 1, 2012, people from all walks of life, who support a business owner's right to express his personal beliefs without retribution, supported Chick-fil-A with their patronage. Considering some of the relatively small demonstrations that bring out the media...where are the news cameras and reporters at this widely supported demonstration for freedom of expression?
Sell Chicken, Not Politics: An Alternative Approach to Chick-fil-A
By Eric Field - Strike-The-Root.com
Civilization is the progress toward a society of privacy. The savage's whole existence is public, ruled by the laws of his tribe. Civilization is the process of setting man free from men. ~ Ayn Rand
Preface
I begin this article by saying that I don't consider myself either for or against gay marriage. I am for the right of consenting adults to voluntarily associate, so long as they do not threaten others. I oppose using force against people engaged in peaceful, voluntary activity. I refuse to believe that a contractual relationship between two consenting adults (such as marriage) is anyone else's business, least of all, government busybodies.
The Issue
U.S. state governments are in the business of licensing and registering marriages. Despite the popular rhetoric, government involvement in marriage is a relatively new phenomenon. Most U.S. states established marriage licensure during Reconstruction as a way to prevent interracial marriage. Many states established divorce laws more than a century before establishing marriage licensure. A quarter of U.S. states didn't require licenses until the federal government mandated licenses in 1923. To put this into perspective, people with the explicit goal of racial segregation implemented marriage and was made a national requirement by many of the same congressmen that implemented alcohol prohibition.
GM profits slip 41% as European struggles take their toll
America's largest car firm made $1.5bn in the second quarter of 2012, with European division reporting operating loss of $361m
By Dominic Rushe - Guardian.co.uk
General Motors' profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America.
America's largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts' estimates, but further underlined Europe's drag on the US economy.
The Green Agenda and the War on Coal:
Perspectives from the Ohio Valley
The Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending held a field hearing in St. Clairsville, Ohio entitled, "The Green Agenda and the War on Coal: Perspectives from the Ohio Valley" on July 31, 2012.
Kofi Annan resigns as Syria envoy
Syrian peace mission impossible because of militarisation on the ground and lack of international unity, says former head of UN
By Ian Black, Middle East editor - Guardian.co.uk
International disarray over the bloody crisis in Syria has been starkly underlined when the UN envoy Kofi Annan announced that he was resigning because of the failure of what he said had become a "mission impossible".
The former UN secretary general said it had been a "sacred duty" to take up the position five months ago to try to find a solution to the conflict. But growing militarisation and a lack of unity among world powers had changed the circumstances.
UN's Syria Envoy Kofi Annan Resigns As Fighting Escalates
By Flavia Krause-Jackson and Nicole Gaouette - Bloomberg.com
Former United Nations Secretary- General Kofi Annan abandoned his effort to mediate a cease-fire in Syria, saying his task was thwarted by "finger-pointing and name-calling" in the UN's most powerful body.
Annan blamed both sides for the increasing militarization of the conflict, and said that a "clear lack of unity" in the UN's decision-making body -- where Russia has used its veto three times to protect the Assad regime -- has "fundamentally changed" his ability to be effective. His resignation as the special envoy appointed by the UN and Arab League is effective Aug. 31, and talks are under way to find his successor.
Greece spooked by Syrian refugees
BY NIKOLAJ NIELSEN - EUObserver.com
BRUSSELS - The surge of Syrian refugees into Turkey has spooked Greece into deploying 1,881 additional guards on its border.
"The deployment of the above border guards has begun today. They will be stationed there [in the Evros region, on the Greek-Turkish frontier] for two months and then they will be replaced by another 1,881 border guards," Greece's ministry of citizen protection told this website in an email on Thursday (2 August).
Fed Should Act, Not 'Communicate'
By Neal Lipschutz - WSJ.com
If the U.S. Federal Reserve decides to further ease monetary policy, perhaps as early as its next meeting in September, it should stick to concrete actions and stay away from communications.
When Fed Chairman Ben Bernanke has, over time, listed the possibilities for action still at the central bank's disposal to try to spur what it today called a decelerating economy, he has mentioned communications.
Today's FOMC Meeting Too Early for Action
BY DIANE ALTER, Contributing Writer, Money Morning
There is little doubt that the struggling U.S. economy could use some goosing, and the U.S. Federal Reserve is in a position to deliver a good boost.
But, a move isn't likely at the conclusion of today's (Wednesday) Federal Open Market Committee (FOMC) meeting.
While a fresh spate of data suggests new steps from the central bank are warranted, many economists warn that the economy doesn't need immediate action - especially since the prior moves from the Fed haven't been very effective.
Growth has clearly slowed and unemployment remains elevated, but the sluggish pace of the U.S. economy may not be slow enough to compel the
