I put this in the conspiracy / terrorism section because it is terrorism - planned by our own governments world wide.
A group Alex Jones calls banksters - I call NWO (new world order) globalists.
I interspersed what Griffith said with my comments ........
The Beginning of the End
A C Griffith said several things on the May 27 power hour radio.
About the Gulf oil disaster, he said
They can NOT fill that hole. It will continue to gush for another 19 months. He takes that from webbot which is occult, witchcraft, satanism.
- This will kill ALL the fish in the WORLD.
- The chemical they are spreading is remaining in the sea water.
- They ARE going to evacuate the coastlands, claimed Griffith.
If they use a nuke to seal the hole - they may split the Mississippi River (New Madrid) fault open and drain the Great Lakes.
(Now that could be. The hole in the earth is right below the New Madrid fault line which extends into Gulf of Mexico.)
US DOLLAR is PRIMED to COLLAPSE by the END of JUNE
Do I believe that? I believe it will collapse very SOON - by NWO plan.
The Obama govt is a facist govt like Mussolini and Hitler.
They are DELIBERATELY collapsing the USDollar.
The dollar is not backed by gold. Its only paper.
They are bringing down the economies and currencies of the whole world.
They are heading for the mandatory 666 chip implanted in the hand.
END A C Griffith, radio May 27, 2010
Last edited by CJ on Sun Apr 07, 2013 10:57 am; edited 5 times in total
Posted: Fri May 28, 2010 6:03 am Post subject: The EURO as we know it is dead
The EURO as we know it is dead
Whatever Germany does, the euro as we know it is dead. Angela Merkel's ban on short-selling is just a distraction from the horror to come.
Merkel has infuriated domestic voters, angered her EU partners, particularly the French, and invited the wolf pack of global traders to do its worst.
In one respect, Mrs Merkel is right - The euro is in danger, if the euro fails, then Europe fails.
The euros weakest link is Greece, who has spent too much and earned too little. (Just like the USA during 2009)
Posted: Fri May 28, 2010 6:15 am Post subject: They Want a Collapse, its Deliberate, Bob Chapman
They Want a Collapse, its Deliberate
May 27, 2010 Bob Chapman, International Forecaster
Europe is rescuing its economy in the same way that the Federal Reserve has attempted to same America’s financial system and economy. They have used an unprecedented aid and stimulus package to offset massive fiscal deficits. In the US a deflationary depression was avoided at least temporarily and that is what is now being attempted in Europe with the guidance of the Federal Reserve.
This kind of program was implemented during the 1930s when we are told that unemployment was 25%. During the late 1930s the program failed to pull America out of depression. Unemployment in 1939 was 17.4% and in 1940 it was 16.2%, hardly the results hoped for and anticipated. The result was WWII. We are headed in the same direction today, as the Middle East and Asia smolder ready at any time to burst into flames.
In the US liquidity was unleashed on a massive scale and that is what will happen in Europe. It is the only way they can keep the system functioning.
We Are now closing in on the next planned world war as a result. When and where we can only guess, but it surely is on the way, the same way it was in the late 1930s. War is a distraction and it succeeds in culling the population. It is also a cover-up for massive financial and economic problems that have resulted from the financial elite looting the system.
The system is not being fixed and deliberately so. The elitists do not want it fixed. They want a collapse. This is the only way they can force people to accept world government.
The groundwork was laid after WWII, as it was right after WWI. The 1960s brought inflation and on August 15,1971 the gold standard was abandoned. That is all that was needed to get the game underway. That inflation lasted some 50 years and is in the process of coming to an end. Many say they do know where it will end, but if they studied history they’d know exactly where it would end. It will end with the deliberate collapse of the financial and economic system and war, the way it always has. This time the conductor is the Federal Reserve, which is currently on the way to being a financial and monetary monopoly with the assistance of our well paid off representatives and senators. The massive reflation you have witnessed over the past almost three years is a steppingstone toward a final solution and world government. As a result we see collapses in some areas and booms in other areas. In the end all markets will fall, some more than others. Debt overwhelms the system worldwide, which is a form of perpetual entrapment.
No currency will be able to withstand the onslaught. In the final analysis only gold and silver will be left standing. Currently, as soon as the most recent credit expansion runs its course, and that should be by yearend, another reflationary wave will be upon us, that is unless those who are controlling this debacle, decide that this is when we slip into an irretrievable deflationary depression.
What is really interesting to us is that we read thousands of reports a week and almost everyone of them follows the same lines, believing the line dished out by governments, Wall Street and banking and other financial entities and the mass media. The control of the media is bad enough, yet these never mind independent journalists refusing to go to the core of the real problem and expose who is causing all these problems. What it does is cause fine researchers to be consistently wrong because they do not understand the real underlying historical problem. Unfortunately, most of them will pass away, never understanding what the problem was all about.
We understand the reflation that took place between 2001 and now. The big question is will it continue? Appearance say yes, but Europe even with an initial $1 trillion aid program will probably see low inflation, perhaps the UK being the exception. The US could stay the same, but we do not think so. Without stimulus by either Congress or the Fed the US would collapse economically. You can expect something but we do not know what as yet. Everyone looks for a middle ground, but we seldom see that. We see a world, and particularly in Europe and the US, where people are unhappy with the system, where wealth is in decline and signs of recovery are not to be found, as more and more jobs are shipped to the second and third worlds. Leadership is dreadful, composed of Illuminists and those controlled by them. We live in a politically unstable world that gets nastier each and every day. No one wants austerity or realistic solutions. Throwing money at these problems accomplishes nothing. We see no signs of commentary in regard to the end of free trade, globalization, offshoring and outsourcing, which continues to drain jobs from the US and UK. Fiscal restraint simply doesn’t exist. Most of the jobs created are by the federal government. Taxes are continuing to rise. Officially we are told deficits will be $10 trillion over the next ten years. America is being set up for a financial collapse. Today’s debts are unplayable, never mind those of the next ten years. America and Europe will hit the wall – there is no avoiding it. They are in denial as severe problems approach. There are no easy solutions left. America and Europe have never seen anything like this before, even in the 1930s. This leaves those with wealth left in a quandary. Yields on bonds are terrible and the rest of conventional investments are risky at best. The dollar may have rallied from 74 to 86 on the USDX, but it and all other currencies have fallen versus gold, a trend in place for 11 years, that shows no signs of ending. The stock market is losing its footing and real estate is still descending. At the same time our purchased congress is about to give the privately owned Federal Reserve a financial monopoly, when it should be terminated. If that happens the looting by elitists will continue apace. We certainly are not optimistic regarding the future and that is why we continue to recommend gold and silver related assets.
Americans do not understand the significance of what is happening in Europe. Greece may have accepted the EU aid plan, but the people haven’t and an election is looming, which probably means a different government. In Spain a lender fails and other banks are merged with the help of the Bank of Spain. Spain misses its budget projection and the same happens in Greece. Global markets are in part responsible for what is happening in US markets. As long as the euro falls and these problems persist there can be no real recovery in the US or Europe. Being interconnected is having disastrous consequences. A US recovery unfortunately is in the hands of European politicians, who all take their marching orders from the illuminati. What is happening in Greece and will happen in 17 other countries will also happen in the UK and the US. The US market is falling already off 1,400 Dow points just as we said it would be and we see it much lower. Due to the closeness of policy what is happening in Europe will affect the entire world. The dominoes are in fact falling. European and British foreign debts are now being studied with the same focus as subprime bonds and the results are going to be the same, a massive credit crisis. The PIIG nations represent about 4% of world GDP, but they could take the entire system down. Germany has put a key piece into the support program and the Fed has contributed a massive swap arrangement giving Europe unlimited access to unlimited dollars. The euro will allow a sideways movement in GDP growth, but will also bring higher inflation as unemployment grows. This, of course, is why we need a war. No matter what, Asian goods are going to become more expensive worldwide. Defaults are a sign of a coming calamity just as they were in the 1930s. In addition, Germans are very unhappy bailing out Southern Europe and they do not like being forced into participating in austerity that to them is unnecessary, at least for Germany.
This is another holding action to gain time until the elitists can get another war going. This is another bank bailout by taxpayers and the German people don’t want to participate.
There is still no question in our minds that Greece was a setup to lead to a deflationary collapse later and the Greek people refused to listen. As a result it is now apparent that Greece is even worse off than the elitists imagined. We do not see European bailouts going any further. The result is the US and UK will follow. Financial Europe is history. You should all keep in mind that this is child’s play. Wait until England and the US go down, perhaps before the end of the year.
As this transpires the NY Fed President, William Dudley, tells us households are still de-leveraging.
He tells us the banking system is under significant stress. There is small and medium-sized banks that have significant exposure to commercial real estate loans.
He sees significant headwinds ahead. We call that an under statement.
As banks sought bids for $10 billion in toxic waste the Fed is attempting to sell the same kind of garbage. Anything they do not dump they will have monetized and that is inflationary.
Total US debt just hit $12,987,823,000,000, $13 billion from lucky $13 trillion. As next week the US Treasury is auctioning off another gross $140+ billion in Bonds, we will pass this totally irrelevant resistance level on May 25, when Timmy issues another $42 billion of 2 Year Notes
http://www.treasurydirect.gov/ins...ess/preanre/2010/A_20100520_1.pdf The next important support level of $14 trillion will be surpassed around the time the Democrats get destroyed in the mid-term elections, while the statutory debt limit of $14.3 trillion will likely have to be raised in January 2011 by a new republican majority, an action which will promptly reduce popular republican support following their landslide election victory, thus starting the pointless D->R->D->R etc cycle all over again. Also, at approximately that time headlines that US debt is now 100% of GDP will bring the US bond vigilantes out of hibernation and will send US interest rates soaring, assisted by Ben Bernanke’s most recent announcement that the Fed will is once again “forced” to purchase another $1.5 trillion in treasuries and mortgages.
Stepping away from the Ouija board, we also notice that so far in April, the Treasury has rolled another unsustainable amount of Treasuries: $397 billion, of which $$359 billion is in Bills.
Lyndon LaRouche issued the following statement today in response to the vote in the U.S. Senate to end debate on the so-called Financial Reform Bill:
“The issue is if somebody tries to push this bill through without Glass-Steagall and the Cantwell-Lincoln amendment to close the Dodd loophole on derivatives, then the U.S. citizenry won’t accept any decision from this Congress as legitimate. The citizenry will not recognize the Congress or its authority. They will view it as a corrupt institution which must be purged. We are in a mass strike mode. If congress rigs the process to ram through the President’s demands, the citizenry will revolt against Congress and the President. And they will do so based on the authority of the Constitution of the United States of America. The people of the U.S. won’t stand for this. The authority of the Constitution is in my hands and I am exerting it. I am confident the people of the United States will support me in this. Those who disagree don’t understand the people of the United States and their temperament.”
Senator Scott Brown yesterday drew scorn from former admirers who had hailed the Massachusetts Republican as a new voice for the conservative cause but now say he has abandoned them by joining Democrats to advance President Obama’s plan to overhaul the financial system.
As quickly as they had latched onto his campaign four months ago, they repudiated him yesterday through a flurry of blog posts, editorials, and Facebook messages.
“His career as a senator of the people lasted slightly longer than the shelf life of milk,’’ said Shelby Blakely, executive director of New Patriot Journal, the media arm of the Tea Party Patriots, which includes various Tea Party groups around the country. “The general mood of the Tea Party is, ‘We put you in, and we’ll take you out in 2012.’ This is not something we will forget.’’
But Brown also won praise from Democrats and some political observers for taking what they view as a shrewd step toward securing reelection in a state that typically has preferred its statewide Republican officeholders to be moderate. They said it also showcased his effort to make good on his vow to be independent and not always hew to the party line.
Federal prosecutors won’t bring charges against former American International Group Inc. executive Joseph Cassano related to the insurer’s collapse, according to a person familiar with the investigation.
The Justice Department found after a two-year investigation that there was insufficient evidence to charge Cassano, who was the former chief executive officer of AIG’s Financial Products division, the person said.
The Justice Department and civil investigators from the Securities and Exchange Commission were examining comments made in 2007 by Cassano and other AIG executives. They were probing whether executives misrepresented the value of AIG’s portfolio of “super senior” credit-default swaps, which insured bond losses tied to the U.S. housing market. [So what else is new.]
Nervous lawmakers anticipating an unstoppable flood of corporate and union money into the fall political campaigns have found one way to fight back: by loosening the rules for the major political parties, allowing them to exert more influence of their own.
Little-noticed language in campaign finance bills would help parties and their candidates get around restrictions on working together on political campaigns — essentially allowing parties to tap into their deep well of funds to more directly help their favored candidates.
Another provision would require broadcasters to offer political parties the same low advertising rates they give to candidates.
The measures are part of a package of changes introduced in Congress after the Supreme Court’s rejection in January of longstanding restraints on direct corporate and union spending.
The US Chamber of Commerce has said it is preparing to spend $50 million on midterm elections, an early sign of a corporate media blitz to come.
Powerful unions are also planning massive spending on the fall campaigns. Officials from the American Federation of State, County and Municipal Employees have told The Hill newspaper that the union plans to top $50 million in spending, while the Service Employees International Union reportedly plans to spend $44 million.
Six investment banks including UBS AG, Citigroup Inc. and Deutsche Bank AG agreed to report European dark trades executed on their internal systems as the industry comes under closer regulatory scrutiny.
Starting today, the banks, which also include Morgan Stanley, JPMorgan Cazenove Ltd. and Credit Suisse AG, will report European equity trades matched in their internal crossing engines to Markit Ltd. At the end of the trading day, Markit will collate, check and validate the data and publish the aggregated trading volume the next afternoon, said the Association for Financial Markets in Europe, which represents the banks.
Dark pools, which allow investors to buy and sell securities away from regulated exchanges so they don’t have to disclose positions, are at the center of a regulatory storm as U.S., European and U.K. securities watchdogs scrutinize market structure, responding to the worst financial crisis since the Great Depression.
Regulators disagree on how much trading banks carry out in dark pools. The U.K.’s Financial Services Authority says dark pools account for 1.25 percent of trades, whereas the Federation of European Securities Exchanges, which represents exchanges, estimates the figure is closer to 40 percent. The lack of reliable information on volumes and pricing of securities in dark pools has posed a problem for regulators trying to keep pace with market innovation.
of OTC trading,” said John Serocold, managing director of AFME. The move provides “verified data where previously there has been only speculation and by giving a clear indication of the actual levels of trading in crossing engines.”
A measure of the U.S. money supply, created but abandoned by the Federal Reserve, has turned negative in the past year and signals disinflation or outright deflation, according to economists who track the figure.
The CHART OF THE DAY shows M3 has shrunk 5.4 percent in the past year, an indication the economy may face deflationary pressure as fewer dollars chase the same amount of goods, according to economists Paul Ashworth and Paul Dales at Capital Economics Ltd. in Toronto. They began compiling a measure of M3 after the Fed discontinued it in 2006.
“Sharp falls in the money supply tend to go hand in hand with very, very low rates of inflation if not deflation,” Dales said. The decline in M3 “suggests there is perhaps greater downward pressures on inflation than M2 suggests.”
The core inflation rate rose last month by 0.9 percent from April 2009, the smallest increase since January 1966, after a 1.1 percent year-over-year advance the prior month.
The Fed reports two measures of the money supply each week. M1 includes currency held by consumers and companies for spending, money in checking accounts and travelers checks. M2 adds savings and private holdings in money-market mutual funds. M3 encompassed M2 along with large time deposits, repurchase agreements, Eurodollar accounts and institutional money-market mutual funds.
M1 and M2 have risen as the Fed boosted bank reserves by creating new money to purchase up to $1.43 trillion in housing debt.
M3 has fallen along with bank lending, as banks chose not to use the increase in reserves as leverage for new loans. Many types of account balances have declined, including those tracked by M3. One such component, institutional money fund balances, fell to $1.94 trillion in April from $2.52 trillion a year ago.
The Fed stopped measuring M3 in 2006, saying it “does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary-policy process for years.” The Fed said the costs of collecting the measure outweighed the benefits.
Defaults on apartment-building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter, almost twice the year-earlier level, as more borrowers failed to repay debt approved near the market peak, said Real Capital Analytics Inc. in a report.
Defaults on so-called multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today. Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.
“Apartment defaults are leading other commercial real estate,” Sam Chandan, global chief economist at Real Capital, said in an interview. “Banks tended to make more aggressively underwritten apartment loans earlier during this last cycle. Credit and pricing reached their peaks for office properties and other commercial assets later.”
The global recession cut demand for U.S. apartments, office space, retail shops, hotels and warehouses during the past two years as jobs disappeared and consumers cut spending. Defaults on apartment-building mortgages surpassed the previous record, set in 1993, for the past three consecutive quarters.
The U.S. savings-and-loan crisis drove apartment-building defaults to 3.4 percent in 1993. Defaults on other types of commercial property debt peaked at 4.6 percent in 1992, according to Real Capital.
The proportion of defaults on office, retail, hotel and industrial properties rose to 4.2 percent in the first quarter of this year, the company said.
U.S. apartments may lead a rebound in commercial real estate as vacancies peak in 2010 and the economy adds jobs, property research firm Reis Inc. said May 19. Reis estimates apartment vacancies will peak at 8.2 percent in 2010, the highest level since the firm began tracking the number in 1980. The number should start to decline in 2011, Reis said.
Posted: Fri May 28, 2010 12:48 pm Post subject: Dollar Primed for Collapse by End June
Dollar Primed for Collapse by End June
26 May 2010 CNBC
The dollar's recent strength has been explained by most market analysts as a result of the euro weakness rather than any fundamental support for the greenback. In fact, a closer look at the dollar's chart - particularly the dollar index - suggests the currency may be primed for a collapse.
The dramatic dollar index rise from $0.81 to $0.87 in recent weeks shows the chart's developed a dramatic and possibly dangerous parabolic trend. This trend has four important features.
The first is the way it captures an acceleration in behavior. The trend starts slowly and then gathers speed, rapidly moving up with increasing volatility.
The second feature is the shape of the curved parabolic trend rise. This is not a true parabolic curve because as the trend accelerates the curve changes shape until it becomes vertical. It’s the vertical section of the curve which is most useful because it provides a exact date when the trend will inevitably collapse.
This type of trend line curve was first identified in the 1930’s and it was mistakenly called a parabolic curve. We continue to use the name, even though it is not an accurate description. In the 1930’s this was a rare behavior. In the last decade this curve has become increasingly common as volatility has increased in modern markets. This type of trend should not be confused with the parabolic Stop and Reverse indicator.
The third feature of the parabolic trend line centers on the candles that build the pattern. Every day a new candle is added to the right of the previous days candle. Eventually, and inevitably, a candle will move to the right of the vertical section of the parabolic trend line and signal and end to the trend. The trend has a final ending date that can be calculated in advance using the vertical section of the trend line.
The fourth feature of the parabolic trend line is the high probability of a very rapid collapse in the trend. A good example is the parabolic trend in the oil market in 2008. When this trend collapsed the price dropped from $145 to $90 in 13 weeks.
The dollar index suggests the greenback will continue to stengthen until the end of June, with a target near $0.89-$0.91, before it collapses to a downside target of $0.81.
Daryl Guppy is a trader and author of Trend Trading, The 36 Strategies of the Chinese for Financial Traders –www.guppytraders.com . He is a regular guest on CNBC's Asia Squawk Box. He is a speaker at trading conferences in China, Asia, Australia and Europe.
If you would like Daryl to chart a specific stock, commodity or currency, please write to us at ChartingAsia@cnbc.com. We welcome all questions, comments and requests.
CNBC assumes no responsibility for any losses, damages or liability whatsoever suffered or incurred by any person, resulting from or attributable to the use of the information published on this site. User is using this information at his/her sole risk.
Posted: Fri May 28, 2010 12:53 pm Post subject: Euro Crisis to Set One World Currency?
Euro Crisis to Set One World Currency?
May 28, 2010 – by Staff Report
Is Europe heading for a meltdown? ... This financial crisis is worse than the sub-prime crash of 2008 because the sums are so much bigger and it is governments that are in dire straits. Edmund Conway explains the dangers. Mervyn King, the Bank of England Governor, summed it up best: "Dealing with a banking crisis was difficult enough," he said the other week, "but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop." In other words, were this a computer game, the politicians would be down to their last life. Any mistake now and it really is Game Over. Or to pick a slightly more traditional game, it is rather like a session of pass-the-parcel which is fast approaching the end of the line. – UK Telegraph
Dominant Social Theme: The wise men of Brussels and the courageous citizens of the EU will muddle through.
Free-Market Analysis: As the money crisis seems to grow worse in Europe, we have begun to wonder if there are parallels to the 1907 financial panic in the United States that gave rise to the Federal Reserve. The dominant social theme way back then (assuming an active power elite, and we do) was along the lines of "The US banking system is too fragmented and a lender of last resort is badly needed." JP Morgan assembled his rich friends in the library of his exquisite New York mansion and bailed out the market, but only six years later, the Federal Reserve was born, the bastard child of false market-insolvency rumors and a knobby-nosed father (Morgan, himself).
There is, in fact, still speculation today that Morgan's camp planted the initial rumors of instability that swept the market and triggered the crash of 1907. Why on earth would he do such a thing? To generate the eventual result: the creation of the Federal Reserve and its passage by the US Congress. This is one perspective, anyway, the "paranoid one" that you will not find in most mainstream history books or college texts.
Back to our larger theme. We have written in the past (see – IMF Plotting Gold Backed SDRs) that we did not see how on earth the power elite was going to get from fairly abstract monetary concepts like SDRs to an actual worldwide consensus for a more globalized currency (and a global warming – "carbon" – currency seems, as well, to be a non-starter, at least currently). In fact, we have speculated that the elite could decide on a gradualist approach, setting up a thesis/antithesis dialectic between global money and regional money to move the conversation gradually in the direction of a worldwide currency. But perhaps there is a faster way. Let us see ...
The European financial crisis started with Greece and, it's true, Greece's problems are moderate ones for the EU given its size and amount of debt. But this crisis has not been resolved despite the supposed US$1 trillion that has been set aside to discourage "wrong way" speculation in Greek debt. We saw yesterday that the larger market was up because of statements from Chinese leaders that they were not going to sell euros and were perhaps to continue to be a net purchaser. So this is what market confidence has come to: China, a rigid, neo-communist state with a raging property inflation problem is seen by "the market" as a lynchpin of the Western capitalist system. What a hoot. You can't make this stuff up.
Anyway, from our perspective, a hypothetical path to a world currency (with some speed) would involve certain very specific elements. It would include, obviously, a very serious sovereign wealth crisis spreading from country to country thoughout at least the Southern half of Europe. This crisis, hypothetically, would be averted by heroic Brussels bureaucrats but not before a significant amount of financial pain was inflicted – good and hard as H. L. Mencken might say. It might even involve the dissolution of the euro and the shrinking of the EU itself. But the pay-off for the power elite would be the ability to float a scenario that proposes a worldwide currency to avert additional difficulties going forward. Here's some more from the article excerpted above:
Strip away the details – the breakdown of the euro, the crumbling of the Spanish banking system to take just two – and what you are left with is the next leg of a global financial crisis. Politicians temporarily "solved" the sub-prime crisis of 2007 and 2008 by nationalising billions of pounds' worth of bank debt. While this helped reinject a little confidence into markets, the real upshot was merely to transfer that debt on to public-sector balance sheets.
This kind of card-shuffle trick has a long-established pedigree: after the dotcom bust, Alan Greenspan slashed US interest rates to (then) unprecedented lows, which helped dull the pain, but only at the cost of generating the housing bubble that fed sub-prime. It is not so different to the Ponzi scheme carried out by Bernard Madoff, except that unlike his hedge fund fraud, this one is being carried out in full public view.
The problem is that this has to stop somewhere, and that gasping noise over the past couple of weeks is the sound of millions of investors realising, all at once, that the music might have stopped. Having leapt back into the market in 2009 and fuelled the biggest stock-market leap since the recovery from the Wall Street Crash in the early 1930s, investors have suddenly deserted. London's FTSE 100 has lost 15 per cent of its value in little more than a month. The mayhem on European bourses is even worse, while on Wall Street the Dow Jones teeters on the brink of the talismanic 10,000 level.
It is obvious that the sovereign crisis can inflict considerable pain. And it seems to have just begun. Yet perhaps our scenario is too simplistic, too conspiratorial. We ourselves have maintained that the problems with the EU and the euro are probably in excess of whatever the elite had expected – and they did expect a crisis of this sort, one that was supposed to drive the EU into a closer political union. The idea, however, that the power elite could engage in cold-blooded manipulations of whole countries is fairly difficult to countenance. On the other hand, there are historical speculations that JP Morgan, at the height of his wealth, controlled in some sense up to half of the profitable enterprises in the United States. Wealth can be concentrated and great wealth begets wealth, especially because the current fiat money system that tends to collapse the middle class.
All this is no doubt far fetched. But the Panic of 1907 and the subsequent erection of the Federal Reserve – if one accepts the relationship between the two – provides us with a template for the same sort of manipulation on a bigger scale (assuming one believes in the possibility of JP Morgan's market manipulations). However it is also true that this article itself is evidence of the difficulties that the elite would face in implementing the kind of program we have suggested. After all, if we are able to anticipate it, it has occurred to others as well. This is perhaps the elite's biggest challenge in the era of the Internet. It is most difficult to promote an audience, if it comes to that, aware of your intentions and the permutations of your strategies.
Billionaire investor George Soros says ''we have just entered Act II'' of the crisis as Europe’s fiscal woes worsen and governments are pressured to curb budget deficits that may push the global economy back into recession.
''The collapse of the financial system as we know it is real, and the crisis is far from over,'' Mr Soros said at a conference in Vienna. ''Indeed, we have just entered Act II of the drama.''
Mr Soros, 79, said the current situation in the world economy is ''eerily'' reminiscent of the 1930s with governments under pressure to narrow their budget deficits at a time when the economic recovery is weak.
Concern that Europe’s sovereign-debt crisis may spread sent the euro to a four-year low against the dollar on June 7 and has wiped out more than $US4 trillion from global stock markets this year. Europe's debt-ridden nations have to raise almost 2 trillion euros ($2.85 trillion) within the next three years to refinance, according to Bank of America.
''When the financial markets started losing confidence in the credibility of sovereign debt, Greece and the euro have taken centre stage, but the effects are liable to be felt worldwide,'' Mr Soros said.
Mr Soros gained fame in the 1990s when he reportedly made $US1 billion correctly betting against the British pound. He also wagered that Germany's mark would appreciate after the collapse of the Berlin Wall in 1989 and that Japanese stocks would start to fall in the same year. His firm, Soros Fund Management, manages about $US25 billion.
Sales of U.S. Existing Homes Fall as End of Tax Credit Looms
22 June 2010 Bloomberg)
Sales of U.S. previously owned homes unexpectedly fell in May as demand began to slip even before a government tax credit expires.
Purchases of existing houses, which are tabulated when a contract closes, decreased 2.2 percent to a 5.66 million annual rate, figures from the National Association of Realtors showed today in Washington. To receive a government incentive worth as much as $8,000, buyers must have signed contracts by the end of April and need to complete deals by the end of this month.
Builder shares dropped on concern the end of government stimulus, mounting foreclosures and unemployment may cause renewed weakness in the industry that precipitated the worst recession since the 1930s. Delays in processing contracts from last-minute buyers rushing to qualify for the tax break may also have contributed to the decrease, the agents’ group said.
Sales “will be pretty soft for the next few months,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, whose sales forecast was the closest among economists surveyed. “Ultimately, you’re going to need job growth to see a sustainable recovery in housing.”
Stocks fluctuated between gains and losses after the report as a positive sales report from Apple Inc. triggered a rally in technology shares, helping to overcome the housing data. The Standard & Poor’s 500 Index was little changed at 1,112.84 at 1:04 p.m. in New York. The S&P Supercomposite Homebuilder index fell 0.4 percent.
Existing home sales were forecast to rise to a 6.12 million rate, according to the median forecast of 74 economists in a Bloomberg News survey. Estimates ranged from 5.2 million to 6.5 million. The group revised April’s sales rate up to 5.79 million from the 5.77 million previously reported.
Purchases of existing homes increased 18 percent compared with a year earlier prior to adjusting for seasonal patterns.
The median price climbed 2.7 percent to $179,600 from $174,800 in May 2009.
The number of previously owned homes on the market dropped 3.4 percent to 3.89 million. At the current sales pace, it would take 8.3 months to sell those houses compared with 8.4 months at the end of the prior month.
Declines in inventories have slowed in recent months, posing a risk for the market, Lawrence Yun, the group’s chief economist, said in a press conference. Yun said this “overhang” in supply is a concern and may lead to further declines in property values in coming months.
There may be as many as 180,000 buyers who will not be able to close on deals by this month’s deadline in order to qualify for the tax credit, Yun said, calling on the government to push the expiration date back.
A proposal to move the closing deadline to Sept. 30 from the end of this month is part of legislation extending unemployment benefits and providing $24 billion in aid to state governments that has stalled in Congress.
Last month’s drop in sales was led by an 18 percent plunge in the Northeast. Purchases in the Midwest were little changed, while those in the West climbed 4.9 percent and demand in the South increased 0.5 percent.
Federal Reserve policy makers, who begin a two-day meeting today, are forecast to commit to keeping interest rates near zero to help wean the world’s largest economy off government stimulus. The hazard posed by the European debt crisis, joblessness and a lack of inflation add to the reasons why central bankers will focus on sustaining the U.S. rebound.
Hovnanian Enterprises Inc., the largest homebuilder in New Jersey, said orders fell 17 percent in the quarter ended April 30 from a year earlier, and contract signings slowed in May, indicating the tax credit helped pull some sales forward.
“The expiration of the federal homebuyer tax credit, the lack of job growth and a potential increase in foreclosures all pose risks to a housing industry recovery,” Ara K. Hovnanian, chief executive officer, said in a June 2 statement.
The window of opportunity for the tax credit has already passed for purchases of new houses, which are tabulated at contract signings and are considered a timelier barometer of the market. A Commerce Department report tomorrow will show new home sales plunged 19 percent to a 410,000 annual pace last month, according to the median forecast of economists surveyed.
Existing homes account for about 90 percent of the market.
Builders are being hurt by competition from foreclosed properties that are depressing property values. Foreclosures jumped to a record for the second consecutive month in May as lenders stepped up property seizures, according to RealtyTrac Inc., an Irvine, California-based data seller.
Cheaper borrowing costs are helping mitigate the damage. The average rate on a fixed 30-year mortgage was 4.75 percent last week, just shy of the record-low 4.71 percent reached in early December, according to data from Freddie Mac, the mortgage-finance company being supported by the U.S. government.
The Treasury sold $40 billion of two-year notes at a record-low yield of 0.738 percent with inflation falling and policy makers forecast to keep interest rates near zero through the year.
The previous record low of 0.769 percent was set during the Treasury’s last auction of the securities in May. The bid-to- cover ratio, which gauges demand by comparing the number of bids to the amount of securities sold, rose to 3.45, the highest since October 2009, from 2.93 at the last two-year note sale.
The U.S. has been able to sell record amounts of debt this year at or near historically low rates as the threat of inflation eases and demand surges from investors seeking a haven from Europe’s sovereign debt crisis, as well as concern the U.S. economy recovery may be faltering.
“Just absolutely fantastic,” William O’Donnell, U.S. government bond strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc, said of the demand at the auction. RBS Securities is one of the 18 primary dealers that trade with the Fed and are required to bid on Treasury auctions.
“The ability of the administration is limited from hereon to further stimulate consumption,” O’Donnell said. “We might have to suffer through fiscal constraint that will lead to lower consumption, therefore slowing inflation.”
The Fed will hold its target rate for overnight loans between banks at a record-low range of zero to 0.25 percent at the end of its meeting tomorrow, according to all of the 97 economists in a Bloomberg News survey.
The cost of living in the U.S. dropped in May for a second month. The 0.2 percent decline in the consumer price index was the biggest since December 2008 and followed April’s 0.1 percent decrease, figures from the Labor Department showed June 17.
I don't put any stock in Steve Quayle and the webbots, but June 28th seems to be coming up as a 'doom financial day'. It seems like this date is being buzzed around alot of the internet MBs.(not just Quayle and the webbots)
We will see, I hope and pray not, but apparently, all the wealthy people moving out of this country now before 6/28 hits.
Posted: Sun Jun 27, 2010 5:38 am Post subject: Dollar slides
Dollar slides vs euro, Aussie, Kiwi on U.S. stocks, oil
June 25, 2010 NEW YORK (Reuters)
The U.S. dollar fell against the euro and commodity-linked currencies such as the Australian dollar on Friday as investors felt more comfortable buying riskier assets after stocks came off lows and commodities jumped sharply.
U.S. stocks staged a comeback in the afternoon, while oil prices shot higher, fueling risk appetite and prompting buying in the euro and the Australian, Canadian and New Zealand dollars.
These last 4 currencies have become symbols of risk appetite in the developed world, moving in tandem with U.S. stocks.
"There's some tentative risk appetite in the market as we see stocks rallying and commodities up sharply," said Dean Popplewell, chief currency strategist at OANDA in Toronto.
"Fundamentally, there is no reason for the euro to rise given the euro zone debt crisis."
Funding issues in the euro zone are still an issue, as banks need to repay some 442 billion euros in one-year loans to the European Central Bank next week.
In late trading, the euro rose 0.5 percent against the dollar to $1.2387. Despite the euro's gains, however, the euro zone single currency was still down 0.4 percent on the week but up 0.7 percent for the month of June so far.
The dollar, however, fell 0.3 percent against the yen to 89.24 after sliding to a fresh one-month low at 89.21, according to electronic trading platform EBS. It was the dollar's fourth straight daily drop against the yen and, at 1.3 percent for the week, the third straight week of declines.
Dollar losses versus the Japanese currency were partly triggered by data which showed U.S. gross domestic product growth was slower than previously expected in the first quarter.
"A bit of a disappointment with this (GDP) report," said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. "It's on the softer side of expectations and with the recent slew of soft data from the U.S., it actually supports this week's FOMC cautious statement."
The Australian dollar rose 1.0 percent versus the greenback to US$0.8743 while the New Zealand currency also gained 0.8 percent to US$0.7137. The Canadian dollar was also up, pushing the U.S. dollar down 0.7 percent to C$1.0360.
Meanwhile, traders said a weekend meeting of the Group of 20 rich and developing nations is unlikely to produce any surprises.
Analysts say currency issues were unlikely to come to the fore as China took steps last week to de-peg its currency.
"On the G20, I don't expect too much, because the big announcement already happened last week with China saying it would let its currency strengthen a bit," said John Doyle, senior currency strategist at Tempus Consulting in Washington.
Most of the time, the money you contribute to your 401(k) ends up in your account. But there are times when it doesn't, as evidenced by a recent flurry of press releases from the U.S. Labor Department's Employee Benefit Security Administration.
Roughly once a week in July alone, some of the 150 million Americans covered by the more than 700,000 employer-sponsored retirement plans received notice that their hard-earned money ended up in the wrong pocket.
On July 15, the Labor Department sued Savannah attorney Benjamin Eichholz and the Eichholz Law Firm to recover assets belonging to the Eichholz & Associates P.C. Retirement Plan and the Eichholz & Associates P.C. Employees Pension Plan. In its lawsuit, the Labor Department alleged "the defendants violated the Employee Retirement Income Security Act by improperly transferring, lending or using plan assets. The defendants also imprudently lent plan assets, invested in high risk stocks and failed to ensure the plans were covered by a fidelity bond."
On July 8, the Labor Department obtained a consent judgment ordering Eric C. Mitchell & Associates Inc. and Eric C. Mitchell to restore $20,723 in funds to the Bedford, N.H., company's 401(k) retirement plan. The defendants served, respectively, as the plan's sponsor and administrator, and as its trustee.
According to the release, the judgment resolved a Labor Department lawsuit that alleged the defendants had violated the Employee Retirement Income Security Act, or ERISA, since June 2008 by failing to forward contributions withheld from employees' wages to the plan and using the funds for purposes other than plan benefits.
And on July 1, the Labor Department sued Explore General Inc. and its officers for allegedly failing to forward more than $70,000 in employee contributions and to collect more than $100,000 in employer contributions owed to the company's 401(k) plan in violation of ERISA. The lawsuit alleged that the company, Jaime Gonzalez and Paul Gong failed to timely segregate and remit to the plan employee contributions for the period from January 2002 through about March 2005. Gonzalez, who at the time of the violations was the owner and president of the company, and the company allegedly co-mingled the employee contributions with the general assets of the company and used the money to pay general operating expenses of Explore General. Read more about these cases at this Labor Department site.
To be sure, times are tough for small- and midsized business owners. And now more than ever, these owners, many of whom also serve as the company's retirement plan fiduciary, are caught between a rock and a hard place: Pay the bills or deposit their workers' money into the 401(k) plan. Sometimes, employers make the wrong choice.
Check your account balance
But there are things you can do to protect your retirement savings long before your employers end up in a Labor Department press release for the wrong reason.
"Participants need to monitor their account statements to ensure that their contributions are being timely deposited and invested in the right funds," said David Wray, the head of the Profit Sharing/401(k) Council of America.
The experts recommend you monitor on a regular basis and leave no stone unturned. "Most firms provide account balance information via a variety of ways," said Tom Kmak, chief executive officer of Fiduciary Benchmarks.
Usually, you can get your account balance on the internet, via an 800 number, and in hard copy once per quarter. "Check all three to make sure they are in sync," said Kmak, even if it means checking after every paycheck.
You should be even more "conscientious about those reviews if you have reason to believe that your employer has cash-flow or other financial problems," said Fred Reish, a pension attorney with Reish & Reicher.
Your employer is required to deposit your contribution into your account within seven days of the payroll date, according to Mike Alfred of Brightscope. If your employer is taking longer than seven days to deposit your funds, and especially if they are taking more than 15 days, you should call the Labor Department immediately, he said.
China may switch to currency basket for forex rate
Central bank official suggests move away from dollar as benchmark
July 23 LOS ANGELES (MarketWatch)
A top Chinese central bank official suggested switching away from the U.S. dollar as a benchmark for the yuan's foreign-exchange rate, switching instead to a basket of currencies, according to remarks published Thursday.
In comments posted to the People's Bank of China Web site, the central bank's Deputy Gov. Hu Xiaolian said using a basket of currencies from the nation's top trading partners would allow the Chinese yuan to better reflect trading fundamentals.
"Compared with pegging to a single currency, the exchange-rate regime with reference to a basket of currencies will help adjust exports and imports, current account, and balance of payment in a more effective manner," she said.
China's central bank currently sets a "central parity rate" against the U.S. dollar each day, with that day's trading range confined to 0.5% above or below that level.
But Hu said focusing on the dollar-yuan rate ignored China's bigger trade picture.
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