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Economic Articles for 2011

 

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Plan to Keep Your Assets Safe From an Out-of-control Government
by Terry Coxon
Posted December 22, 2011

protect your moneyThere is a sense that from here on, anything goes. The politicians will do whatever they find convenient, because there is no longer anything to stop them – not an electorate that is jealous of its freedoms and certainly not the Constitution, which is now just a playhouse for judicial imagineering. No one can know what's coming next from the government and the financial system it has fostered, but for many of us there is an awful suspicion that we are not going to like it.

Most Americans still have yet to stick a single financial toe across the border, but more and more are considering it. Many, perhaps millions of toes are now twitching at the thought. Their owners want to end their absolute dependence on what happens in the US. They want to prepare for whatever is coming down the road, even though they don't know what it will be. They want to be as ready as possible, even though their worries can only guess at what's ahead. More...

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The Fed Grants $7.77 Trillion in Secret Bank Loans
by Dennis Kucinich
Posted December 21, 2011

Congressman Dennis Kucinich (D-OH), a longtime advocate for reform of the Federal Reserve, is sharply criticizing the Federal Reserve today after Bloomberg news reported that the Federal Reserve secretly committed nearly $8 trillion in support to American and international financial institutions during the 2008 bailout. Kucinich recorded a video for his website before going to the floor of the House of Representatives to call upon Congress to reclaim its Constitution primacy over monetary policy.

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Lessons for Europe From Argentina:Testing Ground for Engineering Financial Collapse
by Adrian Salbuchi
Posted December 19, 2011

Chase's David RockefellerExactly ten years ago Argentina suffered a full-scale financial and governmental collapse. That was the end-result of over a decade of doing exactly what the IMF, international bankers, rating agencies and global "experts" told us to do.
Argentina's economy all but collapsed; people took to the streets banging pots and pans, screaming and yelling, calling all bankers 'thieves, criminals, crooks, swindlers and robbers' but… the big mega-bank bronze gates all remained tightly shut. No one got their money back.

Clearly, this was a massive banker-orchestrated, government-backed robbery of the assets and savings of 40 million Argentinians.Half our population quickly fell below the poverty line, GDP contracted by almost 40% in 2002, millions lost their jobs, their savings, their homes to foreclosures, their livelihoods and yet… not one single bank folded or collapsed!

So, "Occupy Wall Street" demonstrators, lend me your ears! You haven't got a chance! The global money masters already made their financial war game exercise in Argentina. More...

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Pathogenesis of Central Bank Ruin
by Jim Willie CB
Posted December 16, 2011

Where's the money and silver?Here is the smoking gun. Days after the MF Global bankruptcy was filed, and a vast array of deliveries in silver were expunged. The silver vault inventory tells the story of the crime. JPMorgan simply converted what should have been MF Global client silver into JPM licensed vaults. Review the timeline. MF Global declared bankruptcy on October 31st. About a week later the CME began reporting that 1.4 million ounces of Registered silver was unaccounted for and unavailable for delivery, including 627,182 ounces from non-cartel banks. About 7 to 10 days afterwards, JPMorgan suddenly reported a deposit of 613,738 ounces into Eligible vaults. Exactly seven days later, JPMorgan adjusted this silver into Registered vaults. JPMorgan had not seen one significant silver deposit in months prior to this bountiful day. Great work on the part of the Silver Doctors to decipher the story. The charade continues before the USCongress. They are told of claims that investigators are searching avidly for the missing funds. They know where the funds are, in JPMorgan London accounts. They told us they were avidly looking for Madoff Funds too. They know where those funds are too, in the Land of Yodels. Reckoning is coming.

Big bank failures are coming. Unspeakable debt monetization is coming. Flash events are coming. More vanishing acts for private accounts are coming. Divergence in the gold price is coming that will shut down the COMEX altogether during a parade of lawsuits, but probably not prosecution. National debt defaults are coming. The new 2012 year will prove to be a tumultuous year, will chaos reigning and the global monetary system laid to waste. More...

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The Bankers' New Gold
by Jeff Nielson
Posted December 16, 2011

100 to 1 leveragingIn a fresh sign of bankster desperation, we recently learned that they have pushed lease rates for gold to the lowest, negative level in history – i.e. they are paying people more money to "borrow" their gold than at any other time. We know this is a sign of desperation, because back in the real world, buyers are paying premiums near record-highs to buy their (real) gold.

There are numerous implications regarding this latest bankster tactic to suppress the gold market, but before getting into those let's explore all of the reasons why bankers like "leasing gold" in the first place. The starting point is to note that it is with gold-leasing that we see the beginnings of the banksters' 100:1 leverage in the gold market. More...

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Pulling Back the Curtain on the Wall Street Money Machine
by Ellen Brown
Posted December 9, 2011

Our debt is not sovereignOn November 27, Bloomberg News reported the results of its successful case to force the Federal Reserve to reveal the lending details of its 2008-09 bank bailout. Bloomberg reported that by March 2009, the Fed had committed $7.77 trillion in below-market loans and guarantees to rescuing the financial system; and that these nearly interest-free loans came without strings attached.

We have been distracted here and in Europe by a sudden panic over our "sovereign debt" crises, when the real crisis is that our debt is NOT sovereign. We are indentured to a Wall Street money machine that creates our money and lends it back to us at interest, money our sovereign government could be creating itself, with full democratic oversight and accountability to the people. We have forgotten our roots, when the American colonists thrived on a system of money created by the people themselves, debt-free and interest-free. The continued dominance of the Wall Street money machine depends on that collective amnesia. The fact that this memory is surfacing again may be the machine's greatest threat—and our greatest hope as a nation. More...

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Bank's leaked email admits "Occupy movement could impact our industry"
By David Edwards
Posted December 8, 2011

Occupy foreclosed homesA national effort to reclaim vacant properties has one of the country's largest lenders scrambling.

The financial website Zero Hedge has allegedly obtained a memo from Bank of America's field services operation warning, "We need to make sure we are all prepared."

Vocal New York organizer Sean Barry told Raw Story Tuesday that an action known as "Occupy Our Homes" would place foreclosed and homeless families in otherwise-vacant homes. That effort began Tuesday with over 40 events in more than 20 cities. More...

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One Bank to Rule Them All
by Mike Whitney
Posted December 5, 2011

Banker blackmailSo what does Draghi (head of the European Central Bank) want? He wants his ministers to control national budgets, he wants more money diverted from working people into an over-bloated financial system, he wants his own appointments in positions of power (ie–check Italy and Greece's new "technocratic" governments), he wants to dictate economic policy, he wants to abolish the welfare state and the social safety net, he wants to keep Europe in a permanent state of Depression ("austerity measures") so more of the Euro Zones's wealth flows to the 1 percent at the top.

Take a good look: This is the future of European democracy; one country after another stuffed into a fiscal straitjacket while their public assets are privatized, their unions are crushed, and their sovereignty is surrendered to unelected bankers and eurocrats.

Europe is being handed over to big finance on a silver platter. This isn't a crisis; it's blackmail. More...

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The Fed's 16 Trillion Dollar Bailout of the Too Big To Fail Banks
by Lew Rockwell
Posted December 4, 2011

Biggest Fed borrowerWhat you are about to read should absolutely astound you. During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret. Do you remember the TARP bailout? The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the "too big to fail" banks. Well, that bailout was pocket change compared to what the Federal Reserve did. As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the "too big to fail" banks between 2007 and 2010. So have you heard about this on the nightly news? Probably not.

Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the "too big to fail" banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in "fees" to the very financial institutions which caused the financial crisis in the first place.

In addition, it turns out that trillions of dollars of this bailout money actually went overseas. According to the GAO audit, approximately $3.08 trillion went to foreign banks in Europe and in Asia. More...

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Bailout Bandits: The Biggest Borrowers From the U.S. Federal Reserve
by Money Morning Staff Report
Posted December 2, 2011

Cheap money for banksThe Eurozone debt crisis has replaced the U.S. financial crisis as the disaster du jour. But make no mistake: U.S. taxpayers will be paying the tab for the U.S. crisis for years.

That's evidently not true of the banking sector, however, whose massive financial-crisis windfall is just now coming to light. In its January issue, Bloomberg Markets magazine reveals that - at the March 9, 2009 nadir of the financial crisis - the U.S. Federal Reserve had committed $7.77 trillion to rescuing the American financial system. That total was more than half the value of all that was produced in the U.S. economy for that entire year.

While this was going on however, it was a deep, dark secret. The Fed never let on, for instance, that American banks were in such deep trouble that they required a combined $1.2 trillion on Dec. 8, 2008 - "their neediest day," Bloomberg said.

But here's the best part: Many of the biggest banks have ended up doing great as a result of the central bank's largesse. More...

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Bankers have seized Europe: Goldman Sachs Has Taken Over
by Paul Craig Roberts
Posted November 27, 2011

Goldman SachsIf Germany's creditworthiness is in doubt, how can Germany be expected to bail out other countries? Evidence that Germany's failed bond auction was orchestrated is provided by troubled Italy's successful bond auction two days later.
Strange, isn't it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy's, Greece's and Spain's bailout, could not sell its bonds. In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt.

My opinion is based on the following facts. Goldman Sachs and US banks have guaranteed perhaps one trillion dollars or more of European sovereign debt by selling swaps or insurance against which they have not reserved. The fees the US banks received for guaranteeing the values of European sovereign debt instruments simply went into profits and executive bonuses. This, of course, is what ruined the American insurance giant, AIG, leading to the TARP bailout at US taxpayer expense and Goldman Sachs' enormous profits. More...

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The Hallmark of the Fed is Duplicity, or, What's Risky is Safe
by Rob Kirby
Posted November 26, 2011

Federal Reserve CollusionThe purpose of this paper is to highlight how hegemonic American economic doctrine has infected global economics in creating a surreal plutocratic corporatocracy, or in other words, what's black is white, what's up is down, what's safe is risky, you get the idea!

"President George W. Bush bestowed on his [then] intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye."

What this means folks, if institutions like J.P. Morgan, Goldman or Morgan Stanley are deemed to be integral to U.S. National Security - can be "legally" excused from reporting their true financial condition – including KEEPING TWO SETS OF BOOKS. More...

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The Goldman Rule: Don't Let This Puppet Master Pull Your Strings
by Shah Gilani
Posted November 22, 2011

Goldman SachsLet me start with the nexus of power and money in this country. That nexus resides exactly where Wall Street and Washington intersect. Each serves the other and the middle-class be damned. You see, the "revolving door" metaphor that's so often used to describe the relationship between Wall Street and Washington isn't exactly accurate.

The reality is that there is no revolving door. There are no doors at all. It is more like one giant corridor where all the water cooler talk is about paying for campaigns, paying lobbyists, and paying bonuses. There's a reason why Goldman Sachs is derisively referred to as "Government Sachs." The flow of executives and operatives between Goldman and Washington, and even other world governments and central banks for that matter, is legendary.

I can't point out all the connections - there are simply too many. But I will point out a few that you may not be aware of. More...

Check the article below to see how the financial industry is the top recipient of government subsidies.

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Whirlwind Debt Crisis Ensures Gold $2000 Assured
by Jim Willie CB
Posted November 17, 2011

Bank failuresBarclays has declared that Italy is finished kaput. The next Greek ruin on the plaza square is happening in Rome. The bond market is rejecting Italy loudly. Time has run out on Italy. Watch for France to catch the viral contagion, being a major creditor. The Euro Central Bank is the only buyer of Italian Govt Bonds. They are the focus for action. When Italy erupts, it will spread to Spain first, and then quickly to France as its primary creditor. The nation of Spain is not in the news much at all, but it will be next year, just like Italy with the same type of problems, but compounded by a bigger housing bust. The research staff at Barclays in London has declared that Italy is formally finished and cooked, as they put it "Italy is now mathematically beyond the point of no return." The Greek tragedy has finally struck Italy. Expect violence on the streets of Rome and other cities, an Italian tradition where innocuous brands of communism have splintered roots.

The next PIIGS domino is soon to fall, for certain to take down Spanish Govt Bonds also. The new head of the EuroCB, the resplendent GSax pedigreed Mario Draghi, must cover the debt or watch the European Monetary Union crumble in a sea of fire. The central bank must make overt commitments of magnitude. If the crumble happens upon inaction, expect 20 Lehman events with numerous bank failures, starting with France. The conflagration would extend to London and New York.

The entire system is collapsing without potential remedy unless all major banks are liquidated, and that will never happen. They house the political power center, and the bond fraud laboratories. At the heart of the vulnerability is the fractional banking system itself. Insolvency arrives quickly and only worsens until a run occurs. Then comes rampant bank failures. More...

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The 1% are the very best destroyers of wealth
by George Monbiot
Posted November 12, 2011

Wealth concentrationIf wealth was the inevitable result of hard work and enterprise, every woman in Africa would be a millionaire. The claims that the ultra-rich 1% make for themselves – that they are possessed of unique intelligence or creativity or drive – are examples of the self-attribution fallacy. This means crediting yourself with outcomes for which you weren't responsible. Many of those who are rich today got there because they were able to capture certain jobs. This capture owes less to talent and intelligence than to a combination of the ruthless exploitation of others and accidents of birth, as such jobs are taken disproportionately by people born in certain places and into certain classes.

The findings of the psychologist Daniel Kahneman, winner of a Nobel economics prize, are devastating to the beliefs that financial high-fliers entertain about themselves. He discovered that their apparent success is a cognitive illusion. More...

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The Continuing Zombification of the US Economy
by Bill Bonner
Posted November 9, 2011

Parasites on the economyWe have been exploring the zombification of the US economy. Major industries – finance, health, education and defense – have been taken over by zombies, parasites whose real interest is to transfer wealth to themselves, from the part of the economy that remains productive.

As the economy becomes more zombified, the part of it dominated by these non-productive industries increases, leaving fewer resources for the productive part. And as the productive part weakens, so does the entire economy's ability to produce real wealth, or grow its way out of debt. More...

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Time to turn outrage over bank fees toward entire financial industry
by Tom Petruno
Posted November 6, 2011

POlice arrestPopular outrage forced Bank of America Corp. to drop the idea of a $5-a-month debit card fee. Now imagine what that outrage could achieve if it were let loose across the financial industry.

How many mutual funds, if faced with that kind of people-power backlash, could justify the management and marketing fees they're charging investors?

How many banks would find their deposits running out the door if savers really took the time to shop around for the best rates?

How many company 401(k) retirement savings plans would offer better investment choices if workers took an active role in monitoring the plans and agitating for improvements?

None of this is easy — certainly not as easy as posting an angry comment on a blog trashing BofA. But the potential savings or added income for investors, savers and borrowers could far exceed the $60 a year that BofA would have siphoned away with the debit card fee. "Far too many consumers are sloppy with their finances," says Greg McBride, senior analyst at Bankrate.com. More...

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The Pentagon's Planet of Bases
by Nick Turse
Posted November 1, 2011

nerve center for the American empireThere are more than 1,000 US military bases dotting the globe. To be specific, the most accurate count is 1,077. Unless it's 1,088. Or, if you count differently, 1,169. Or even 1,180. Actually, the number might even be higher. Nobody knows for sure.

In a recent op-ed piece, New York Times columnist Nicholas Kristof made a trenchant point: "The United States maintains troops at more than 560 bases and other sites abroad, many of them a legacy of a world war that ended 65 years ago. Do we fear that if we pull our bases from Germany, Russia might invade?"

The empire of bases, while still at or close to its height, is destined to shrink. The military is going to have to scale back its foreign footholds and lessen its global footprint in the years ahead. Economic realities will necessitate that. The choices the Pentagon makes today will likely determine on what terms its garrisons come home tomorrow. At the moment, they can still choose whether coming home will look like an act of magnanimous good statesmanship or inglorious retreat. More...

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The Need For Monetary Reform
by American Monetary Institute
Posted October 12, 2011

privately created moneyMonetary reform is the critical missing element needed to move humanity back from the brink of economic destruction and nuclear disaster, away from a future dominated by fraud, ugliness and warfare, toward a world of justice and beauty.

Thus the money issuing power should never be alienated from democratically elected government and placed ambiguously into private hands as it is in America in the Federal Reserve System today. Indeed, most people would be surprised to learn that the bulk of our money supply is not created by our government, but by private banks when they make loans. Through the Fed's fractional reserve process the system creates "money" when banks make loans into accounts; so most of our money is issued as interest-bearing debt. More...

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US Corporations Moving to Offshore Tax Havens
by Bob Chapman
Posted September 22, 2011

Off shore tax havensOne of the greatest detriments to job creation in the US is the overseas income deferral law. This unbelievable gift to transnational corporations is at the heart of free trade, globalization, offshoring and outsourcing. Presently these corporations are sitting on $2.2 trillion in untaxed profits, which is costing the American taxpayer almost $800 billion in lost tax revenue if like in 2006 they are allowed to bring the funds back at 5-1/4% taxation. Those conglomerates want to bring those funds back into the US tax free, which means $1 trillion in lost taxes, taking advantage of the current financial situation in the US.

Five years ago Congress passed legislation allowing $350 billion to be returned to the US at 5-1/4% taxation, not the normal 35%, because these corporations said they would use the funds to create jobs. Very few jobs were created and a large part of the funds were used to purchase company stock, which rose in value, allowing the officers of these corporations to sell stock from options and make billions of dollars in profit for themselves. These are the same corporations that have been responsible for the loss of 11.7 million jobs, the loss of good paying jobs 450,000 American companies and the loss of hundreds of billions of dollars in tax revenue. These corporations are responsible for the heart of American manufacturing being ripped out of America. It over time has spread as well into service and professional industries. More...

The combined deficits of all 50 states is $250 billion. These untaxed profits could cover these deficits more than 3 times over.

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When using cash is better than credit
by Jeanette Pavini
Posted September 7, 2011

bad credit card relationship?So the question is, do we turn over less of our money if we pay in cash as opposed to using plastic? And why?

MIT researchers found that people spend more if they are in a setting where they are able to use credit cards. Catherine Tucker, a professor at MIT Sloan School of Management, said, "I think the question is not whether consumers have a healthy relationship with cash, but whether they have an unhealthy relationship with credit cards." More...

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Full-Blown Civil War Erupts On Wall Street
by David DeGraw
Posted September 4, 2011

Wall Street civil warAs reality finally hits the financial elite, they start turning on each other. Finally, after trillions in fraudulent activity, trillions in bailouts, trillions in printed money, billions in political bribing and billions in bonuses, the criminal cartel members on Wall Street are beginning to get what they deserve. As the Eurozone is coming apart at the seams and as the US economy grinds to a halt, the financial elite are starting to turn on each other. The lawsuits are piling up fast.

We need to keep in mind that the Federal Reserve has known about all of this criminal activity from the start. Yet, they have done everything they could, and are still trying, to keep this criminal operation up and running. As all these criminal banks begin to blow up, let's not forget who their central bank is and what they have done to the American people. More...

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9 Trillion Dollars Missing from Federal Reserve
by Global Research TV
Posted August 30, 2011

Rep. Alan Grayson asks the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. Inspector General Elizabeth Coleman responds that the IG does not know and is not tracking where this money is.

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Big Banks Bonus Bonanza
Posted August 19, 2011

Banker bonusesWall Street is at it again in 2010, after paying out all-time record bonuses last year. The top six banks alone are on track to pay out $143 billion in bonuses and compensation this year, more than enough money to fill the entire $130 billion budget gap for every state in the country for FY 2011. $143 billion could create 3.6 million jobs if pumped directly into the economy. With just half of the money, the banks could reset the principals and interest rates on all underwater mortgages in the country to market rates, pumping $73 billion into the national economy.

Moreover, the $73 billion it would take to reset all underwater homeowners' principals and interest rates would be about half of the $143 billion the top six banks alone are getting ready to pay in 2010 in bonuses and compensation. Even if the top six banks were to absorb the full cost of modifying all underwater mortgages in the country, they would still have $70 billion left for bonuses and compensation. Instead of taking home $12.6 million like he did last year, JPMorgan Chase CEO Jamie Dimon would take home $6.1 million. He would still be one of the highest paid men in America. More...

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The Next Financial Crisis Will Be Hellish, And It's On Its Way
by Addison Wiggin
Posted August 5, 2011

Bernacke & Volkner"There is definitely going to be another financial crisis around the corner," says hedge fund legend Mark Mobius, "because we haven't solved any of the things that caused the previous crisis." We're raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius, chief of the $50 billion emerging markets desk at Templeton Asset Management.

Speaking in Tokyo, he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world's major banks are tangled up. More...

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How Deep is the Global Economic Rabbit Hole?
by Greg B. Tomlinson
Posted August 2, 2011

How deep is the rabbit hole?Quite simply, the world's debt hole is deeper than any reasonable person can comprehend. It is difficult to define, and it is not terribly easy to write about - really it's more of a concept than something that you can actually sink your teeth into. You won't see an abundance of stories or editorials on this topic; in fact the financial media avoids the global debt situation like the plague for good reason. Sure, they talk about chunks of it, but almost never in total. However, with your indulgence, it is the purpose of this piece to bring us all a bit closer to not just understanding how dangerous things have become to all of us personally, but more importantly to frame the problem in terms of history and scale.

The economy is acting like a beloved plant you neglected and are now trying to bring back. What you don't know is that you killed 90% of the roots because you are deceived by a green shoot or two. You wake with the realization that your only real choice is to remove all the dead, repot it and prune it back to only what the remaining roots can support. Or you can be like the world's governments and economic leaders – flood it with water, fertilizer and sunlight then curse your "stupid" plant for being such an unappreciative slacker. More...

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What An American Bank Run Would Look Like
by Tyler Durden
Posted July 26, 2011

British Bank RunTechnically the title of this post is wrong: the truth is that nobody could possibly know or predict what a bank run would looks like in details suffice to say that it would have terminal and devastating results on the global economy. One needs only remember what happened when the Reserve Fund broke the buck and the $3 billion money market industry was at risk of unwinding (for those who do not, Paul Kanjorski does a good summary here).

The truth is that should there be a D-Day in the American banking system and there is a global scramble for physical paper (ignore gold) the conversion ratio for binary dollars into hard ones could be as high as 30 to 1. Which begs the question: should one apply a 90% discount when evaluating their electronic dollar exposure? That, and many other questions too. More...

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Imperial Decline: Multi-Billion-Dollar Terrorists and the Disappearing Middle Class
by Prof. James Petras
Posted July 21, 2011

The empire crumblesIt is absurd to believe that the Pentagon and White House would spend $10 billion a month just to hunt down a handful of terrorists ensconced in the mountains of Afghanistan . So what is the war in Afghanistan about? The Taliban have never engaged in any terrorist act against the territorial United States or its overseas presence. The Taliban have always maintained their fight was for the expulsion of foreign forces occupying Afghanistan . Hence the Taliban is not part of any "international terrorist network". If the US war in Afghanistan is not about defeating terrorism, then why the massive expenditure of funds and manpower for over a decade?

The crumbling empire has depleted the US treasury. As the Congress and White House fight over raising the debt ceiling, the cost of war aggressively erodes any possibility of maintaining stable living standards for the American middle and working classes and heightens growing inequalities between the top 1% and the rest of the American people. Imperial wars are based on the pillage of the US treasury. The imperial state has, via extraordinary tax exemptions, concentrated wealth in the hands of the super-rich while the middle and working classes have been pushed downward, as only low paid jobs are available. More...

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Armada of Black Swans Hitting U.S. Economy and Financial Markets
by Jim Willie CB
Posted July 21, 2011

Over the economic edgeThe term Black Swan, generally it refers to the extreme oddity that passes through view, shows up on the radar, the extreme warning signal being dire, but is largely ignored by the masses, regarded as the exception or outlier event. THE BLACK SWAN HAS BECOME THE NATIONAL BIRD!! When a few black swans appear, the alert analysts pay heed and express their warnings. When an armada of black swans appear, the message is clear. A systemic failure is in progress, and the important foundations are crumbling.

Consider the following black swan specimens, each of which is astounding, each alarming, each serving as one more added element to the ruined situation. The swan organization is admittedly rough, but the regiments are put in sensible order. Any small handful of these signals would qualify as forewarning a profound crisis. Not anymore, since crisis is the new normal. Not anymore, since black swans adorn the entire landscape. A healthy white swan gradually suffers from toxic exposure, quickly to turn black from a putrefaction process. Apologies for overlooking at least a dozen other important other black swans, as time and space did not permit the exhaustive catalogue process. Emphasis was given to the United States ponds and its migratory bird population. More...

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Global Economic Crisis: Finance Is the New Mode of Warfare
by Michael Hudson
Posted July 18, 2011

Financial class warfareCutbacks in federal spending mean that the states can't cover their own budgets – and their constitutions prevent many from running deficits. It looks like there will be little federal revenue to share with Minnesota or Wisconsin or the city of Chicago.They're going to have to sell their roads and streets, sell their infrastructure and their public utilities, sell off whatever business enterprises they have that can bring in credit. These assets themselves will be sold on credit, to buyers who then will "expense" their profits as tax-deductible interest. So governments will not get the potential user fees that result from putting up parking meters on their sidewalks, tollbooths on their roads and other rent extraction facilities on their other assets. The financial sector will take all this.

The federal government may also become a seller.It has the Postal Service, and already is privatizing its army to private contractors.Newspapers have joked about Greece selling its Parthenon and other tourist sites. Imagine the U.S. Government selling its national parks and forests – to buyers who borrow the money from the banks. This would let the banks "earn their way out of debt" by creating a huge new market for them in privatizing and cutting up what used to be the public domain. It will end up in the hands of the wealthiest 10 percent of the population.

In this respect the class war is back in business.We're going into a depression that is unnecessary – except to drive down wage levels and strip away government obligations to pay for Social Security, Medicare and other public programs. More...

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A Financial Permanent Crisis
by Andy Sutton
Posted July 9, 2011

permanent financial crisisAs the financial world breathed a collective sigh of relief as the Greek Parliament voted to impose further austerity measures on the people of Greece, I wondered aloud to no one in particular how many times we'd have to see this movie before people finally realize that this crisis is a permanent one.

There are many analogies that we could use to illustrate what has gone on, but probably the best is a trauma patient coming into the hospital with a severed carotid artery. Instead of performing surgery and repairing the wound, doctors throw the unlucky fellow on a gurney with a piece of gauze taped over the incision. Every so often they check back in, throw another piece of gauze on it and walk out, never fixing the problem. That is precisely what is going on with regards to the Eurozone mess. And America's too. Lots of tape and gauze with precious little in the way of real solutions has been the norm for quite some time now and there is no reason to think that this will change unless it is out of dire necessity. More...

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The Great Misdiagnosis of the U.S. Economy, Problem is Insolvency Not Liquidity
by Jim Willie CB
Posted July 2, 2011

insolvencyIn the last three years, at least 100 direct questions have come to my INBOX or telephone, asking what solution might come. My answer has been consistent, that no solution is even pursued. The objective is not remedy, but rather retained power by the banksters. Any meaningful remedy must begin with a foundation of liquidated failed insolvent big US banks. That will never happen, since they hold the power over the USGovt and control the USDollar printing press. We are witnessing moral hazard over the top, the acceptance of the most dangerous risk. The entire concept of Too Big To Fail for banks ensures no serious attempt to deal with the problems, no meaningful policy to encourage recovery, and a sinking toward systemic failure. The business model leads always to a climax of ruin.

The national implosion, disintegration, and ruin of Greece is in full view. The plight of the United States debt situation is 100 times worse than Greece. The people of Athens are angry, with focus of their anger on the duplicitous and corrupted politicians who favor the bankers and yield to their demands. The people of the United States are angry but less perceptive. They still believe the mean nasty oil producers are lifting gasoline prices, still believe mean nasty speculators are lifting food prices, still believe mean nasty Chinese are lifting import prices, but have clearly come to believe that mean nasty bankers are illegally foreclosing on their homes. The intentional poor education on economic and financial matters has left the American public as mere cannon fodder on the financial battle field. More...

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Seven reasons to avoid Wall Street 'protection rackets'
by Brett Arends
Posted July 2, 2011

protection racketA "protection racket" is where a group of people puts you at risk of disaster and then generously offers to sell you protection against that very risk, usually at a very high price.

Now hold that definition in mind while you contemplate the fact that Wall Street is trying to sell you insurance against another financial crisis.

According to a front-page report in the New York Times , Wall Street banks and hedge funds are raising billions by selling "tail risk" or "black swan" funds that will keep you solvent, in case some unnamed reckless greedheads somehow crash the markets like they did back in 2008.

You couldn't make it up. It's like the town pyromaniac going door to door selling fire insurance. More...

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The American Empire Hangs in the Balance as the ghosts of Roman Emperors Whisper
by James Quinn
Posted June 25, 2011

Collapse of RomeThe talking points of the super rich, which are pounded into the brains of slumbering Americans, are they pay all the taxes, create all the jobs, create all the wealth, and drive innovation. The facts say otherwise. The super rich aren't creators, they are destroyers. The top 0.1% richest Americans didn't get rich by creating new companies and letting their entrepreneurial talents shine. These 152,000 people, with an average income of $5.6 million per year are overwhelmingly executives at large corporations, banks, law firms, and real estate firms. These people account for 68% of the richest of the rich. Entrepreneurial creators and producers account for less than 10% of the richest Americans. The executives that make up the 68% are masters of creating debt, wealth for themselves by peddling debt to the middle class, and creating jobs in China and India by outsourcing U.S. jobs.

The average income of the 137 million people that sit at the bottom of the income pyramid has declined by 1% since 1970. The people at the top of the pyramid saw their average income rise by 385%. Was this because they worked harder? No. It was because they used their existing wealth to buy politicians and pay lobbyists to write laws, create loopholes, reduce regulations, and alter the tax code in their favor. This was not a conspiracy. It was human nature. Humans are driven by greed and fear. Lusting for power and wealth is a common human frailty. Those who are able to acquire wealth and power through their superior abilities and intellect are usually driven individuals. It is built into their DNA to seek more wealth and power. More.

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Why jobs keep vanishing
by Donald L. Barlett and James B. Steele
Posted June 19, 2011

Our biggest export, JOBSGenerations of politicians from both parties have failed to stem the country's rising trade deficit. That's the real reason jobs keep disappearing and workers' living standards keep dropping. Washington is obsessed with the budget deficit. It's all that lawmakers can talk about. The hysteria is such that they can't even agree on raising the ceiling on the national debt.

There's only one problem: Congress is wrought up over the wrong deficit. The real deficit issue that has been out of control for 35 years is the trade deficit. That's the one that has decimated the American workforce, blocked the creation of millions of jobs, created millions more jobs for people in other countries, triggered pay cuts for millions of workers who still have jobs in the United States, and generally lowered the standard of living for many at the bottom and in the middle of the economic pile. Those at the top have flourished quite nicely under this policy. More...

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Hyperinflation Special Report (2011)
by ShadowStats
Posted June 18, 2011

dollar collapseThe U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment. Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press in March 2011, but moving into a full blown hyperinflation could take months to a year, beyond the onset, depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve.

With no viable or politically-practical way of balancing U.S. fiscal conditions and avoiding this financial economic Armageddon, the best that individuals can do at this point is to protect themselves, both as to meeting short-range survival needs as well as to preserving current wealth and assets over the longer term. Efforts there, respectively, would encompass building a store of key consumables, such as food and water, and moving assets into physical precious metals and outside of the U.S. dollar. More...

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A Beginners Guide to Shadow Banking, Financial Crisis and Repo
by Mike Whitney
Posted June 14, 2011

BernackeWhat if I told you that the financial crisis could be explained in just two words? Would you believe me?

It's true, and oddly enough, neither of the words is "subprime". So, what are the words? ----Bank run.

The financial crisis was actually a run on the banking system. Only it wasn't a run in the usual sense of the word where jittery depositors line up on the street waiting to withdraw their savings, but a run on the shadow banking system where traditional banks get their funding via short-term loans in what's called the "repo market". (short for "repurchase agreement") The shadow banking system has become a critical part of the infrastructure of the modern financial system. It provides a way for banks to move credit risk off their balance sheets, thus reducing the amount of capital they need to support their operations. The banks argue that this new system has made credit cheaper for borrowers which, in turn, generates more activity and growth in the economy. But, of course, the risks are much greater too, as we can see from trillions of dollars that were lost following the meltdown of 2008. These risks cannot be contained as long as shadow banks remain unregulated. More...

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The Rich Are Destroying the Economy
by Shamus Cooke
Posted June 13, 2011

Wealthy killing economyEver since the Great Recession shook the foundations of the U.S. economy, President Obama has been promising recovery. Evidence of this recovery, we were told, was manifested in the massive post-bailout profits corporations made. Soon enough, the President assured us, these corporations would tire of hoarding mountains of cash and start a hiring bonanza, followed by raising wages and benefits. It was either wishful thinking or conscious deception. The recent stock market meltdown has squashed any hope of a corporate-led recovery.

The Democrats fought the recession by the same methods the Republicans used to create it: allowing the super rich to recklessly dominate the economy while giving them massive handouts. This strategy, commonly referred to as Reaganomics or Trickle Down Economics, is now religion to both Democrats and Republicans; never mind the staged in-fighting for the gullible or complicit media. More...

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Gold, The Real Reason for the Fall of Dominique Strauss-Kahn
by Andrew McKillop
Posted June 13, 2011

Gold bullionGermany is therefore always interested in buying gold, especially at a low price, which the IMF is unquely placed to facilitate and organize. Methods used by the IMF feature the issuance - or printing - of its own near-money Special Drawing Rights, and the swapping of these for central bank gold from "assisted countries". The aided country will, through IMF magic, report an increase - not a decrease - in its central bank holdings despite the physical gold being transported out of the country. The official logic is that raised amounts of theoretical-only gold in its central banks vaults will stem speculation against the national currency, as part of the economic healing process. When this produces new economic strength, the central bank can buy back the gold it swapped for SDRs, using these to exchange for dollars, euro, yen, British pounds or Swiss Francs and cover its trade deficit crisis, budget crisis, or other transitional economic stress during "IMF adjustment". More...

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U.S. Hurtles Toward System Failure
by Jim Willie
Posted June 10, 20
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systemic failureThe combination of $trillion bond fraud, dependence on inflating home equity for economic development, oversized cars, oil dependence, constant market intervention, insolvent banks, insolvent homes, outsourced industry, endless war, budget deadlock amidst runaway deficits, raided US gold treasury, mammoth future benefit obligations, and handing over the keys at USDept Treasury to Goldman Sachs has left the United States to fend off systemic failure. The creeping price inflation that stems from USFed hyper monetary inflation and total ignorance on basics of capitalism like business formation have left the US vulnerable to disorder and chaos. The chaos in fact grows with the passage of time and the ruin of money, against a background of a cruel middle class squeeze. With one citizen in seven on food stamps and over 22% of the population jobless, the sunset of the American Empire is well along. The banker oligarchs are gradually killing the nation, its democracy, and its wealth engines during a sustained strangulation process.

This paragraph should be read twice: One should constantly remember that no solution to the financial crisis has been installed, nothing fixed, no big banks liquidated, no end to monetary inflation, no end to outsized USGovt deficits, no change of Goldman Sachs running the USGovt finance ministry, no discharge of big bank home inventory, no end to secretive subterranean support of stocks and bonds, no revival of the housing market, no return of US industry from Asia, no prosecution of Wall Street for multi-$trillion bond fraud, no end to money laundering of narco funds to Wall Street banks, no interruption to the endless costly wars, no end to the propaganda obediently pumped out by the US press & media networks. Nothing has changed except that some commodities are lower in price, including the queen Silver. More...

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Nearly Half Of America Says U.S. Nearing Great Depression
CNN Poll
Posted June 10, 2011

Economic fatalismSome economists might be worried about a double-dip recession, but a large number of Americans have an even worse scenario in mind.

Approximately 48 percent of Americans say they think that a Great Depression is either very or somewhat likely to occur within the year, according to a CNN Opinion Research Poll, the highest percentage of respondents that have stated that level of certainty since CNN first started asking the question in October 2008.

The high percentage of Americans that say they believe that there will be an economic depression should raise alarm bells in and of itself, says CNN polling director Keating Holling. "That's not just economic pessimism," Holling told CNN, reflecting on the polling results, "that's economic fatalism." More...

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Why Washington Isn't Doing Squat About Jobs and Wages
by Robert Reich
Posted June 8, 2011

unemployedThe silence is deafening. While the rest of the nation is heading back toward a double dip, Washington continues to obsess about future budget deficits. Why?

Republicans don't want to do anything about jobs and wages. They're so intent on unseating Obama they'd like the economy to remain in the dumps through Election Day. They also see the lousy economy as an opportunity to sell Americans their big lie that government spending is the culprit — and jobs will return if spending is cut and government shrinks.

Democrats, meanwhile, don't want to admit the recovery has stalled. They worry such talk will further undermine consumer confidence or spook the bond market. They don't want to head into the election year sounding downbeat. And they don't think they have the votes for anything that will have much effect before Election Day anyway.

But there's a third reason for Washington's inaction. It's not being talked about — which is itself evidence of the problem. More...

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Offshoring Has Destroyed the Economy
by Paul Craig Roberts
Posted June 2, 2011

Offshored jobsFor a decade I have warned that US corporations, pressed by Wall Street and large retailers such as Wal-Mart, to move offshore their production for US consumer markets, were simultaneously moving offshore US GDP, US tax base, US consumer income, and irreplaceable career opportunities for American citizens.

Among the serious consequences of offshoring are the dismantling of the ladders of upward mobility that made the US an "opportunity society," an extraordinary worsening of the income distribution, and large trade and federal budget deficits that cannot be closed by normal means. These deficits now threaten the US dollar's role as world reserve currency. More...

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The American Manufacturing Crisis and Why it Matters
by Ian Fletcher
Posted May 28, 2011

Manufacturing in troubleDespite the denial chorus of the same politicians, financiers, and economists who told us prior to 2008 that our financial sector was fine, the American public is increasingly aware of the truth: American manufacturing is in a state of deep crisis.

When technological advances take place in the foreign industry, manufacturing is frequently located in that country to be near the source of the R&D. The issue of co-location of R&D and manufacturing is especially important because it means the value-added from both R&D and manufacturing will accrue to the innovating economy, at least when the technology is in its formative stages. Thus, an economy that initially controls both R&D and manufacturing can lose the value-added first from manufacturing and then R&D in the current technology life cycle—and then first R&D followed by manufacturing in the subsequent technology life cycle.

It is no accident that 90 percent of electronics research and development now takes place in Asia, hardly boding well for America's future in an industry we dominated as recently as the early 1970s. More...

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The Federal Reserve Destroying the U.S. Empire, A Fistful of Dollars
by James Quinn
Posted May 5, 2011

Fistful of dollarsIt is not easy to destroy the greatest empire in the history of mankind. The 20th Century was the American Century, but as with all empires, the combination of hubris, monetary debasement, imperial overreach and delusional overconfidence have set in motion the inevitable downfall of the American Empire. Without Federal Reserve intervention in the financial markets since September 2008, the biggest banks in the world would have entered bankruptcy liquidation. The U.S. economy would have experienced a 10% to 20% fall in GDP. The unemployment rate would have soared above 15%. The stock market would have fallen 70%. Wealthy bondholders and stockholders would have seen their wealth cut in half. Incumbent politicians would have all been thrown out of office. The richest Americans, constituting the ruling class, would have borne the brunt of the pain.

When this toxic brew of fraud and debt exploded in their faces, the value of the assets on their books plunged by 30% to 40% in 2008 and 2009. The 10 biggest financial institutions in the country were effectively bankrupt. An orderly bankruptcy liquidation that wiped out the bondholders, stockholders and top executives was the solution to excessive risk taking and failure.

This was an unacceptable solution to the billionaire class that owns half the financial wealth in the country. The President was a multi-millionaire. The Treasury Secretary was a billionaire. There were 250 millionaires in Congress. The top executives of the banks that own and control the Federal Reserve are multi-millionaires. The owners and talking head pundits of the mainstream media are all in the billionaire/millionaire class. The cover story used to bilk $700 billion from middle class taxpayers into the coffers of Wall Street mega-banks was that if we didn't hand over the loot, the financial system would collapse and a Great Depression would ensue. More...

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Money and The Truth about America
by John Kozy
Posted May 1, 2011

America and moneySupplying people with needed products or services is not any vendor's goal; extracting profit is. That's why bankers won't accept the furniture mentioned in the first paragraph of this piece as collateral. Furthermore the entire American commercial code centralizes this purpose and protects the rights of vendors to engage in it. That's why in a commercial bankruptcy, the bankrupt company's assets go first to commercial and last to human creditors. It's why companies can sell you products that don't work but you can't buy products with checks that don't work. You can't even buy products that don't work with checks that don't work. It's why the Fed exists and why bankers and companies get bailouts but people don't. It's also why no banker will ever go to jail for the fraud committed in the housing collapse and the foreclosure scandals. What most people view as fraudulent activity is, in fact, what America does, and what America does is done for the sake of money, not for the sake of people. It's why the maxim is let the buyer, not the vendor, beware. But if the economy were designed equitably, no one would need to beware. Buyers are told to beware because even the legal system recognizes that the economy cheats. In fact, if questioning the practices of bankers were allowed, the entire basis of the "American way of life" would be called into question, and the legal system cannot allow it. More...

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10 Doomsday trends America can't survive
by Paul B. Farrell
Posted April 20, 2011

Economic collapseWe are past the point of no return, thanks to the Super-Rich. Yes, Super-Rich Capitalists will fight to the death. But destiny is trapped in our DNA, historians warn, and will not change. America is run by these short-term thinkers. They never learn the lessons of history. They do not want you to know that their capitalism is self-destructive, that capitalism's cycle is in a suicidal end game, that their "mutant capitalism," as Bogle calls it, is destroying the very soul of America's democracy.

Capitalism has become a religion for the Super Rich, with many such "saviors." Heresies must be denied, such as this one: Doomsday Capitalism is destroying America from within. Here are highlights, with links to a few of the earlier hundred columns on topic. Ten macro trends building to a perfect storm, a critical mass, a flash point: more...

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Sounds of Resistance
by Rudy Avizius
Posted April 20, 2011

Flag lapel "patriot"2 out of 3 corporations pay no federal taxes. Some of the biggest tax evaders include Exxon, Verizon, Bank of America, Boeing, CitiGroup, among others. These corporate executives sit there with their "patriotic" flags on their lapels, while they scheme how to avoid paying their fair share of taxes, cut deals to ship American jobs overseas, and setup tax havens in the Caribbean. Is it any wonder that the rest of the country is mired in this economic misery while they prosper?

We don't have a budget crisis in Washington. We have a MORAL CRISIS. When Congress can seriously debate forcing veterans into homelessness, cutting early childhood education, Pell grants for our students, heating assistance for the elderly, and cutting food aid to pregnant women and children, while giving tax breaks to billionaires and large corporations, something is very, very wrong.

If these corporations paid their share, we would not need to be cutting these programs. So on Friday April 15, 2011 hundreds of people met at Union Square Park in New York to protest this fact. This event was called the Sounds of Resistance and the target was Bank of America. While this bank received $billions in taxpayer funds, it made $billions in profits, it was busy foreclosing on millions of homeowners, all while working very hard to create over a hundred foreign tax havens to avoid paying taxes on their profits.

Click here for video on YouTube site.

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Big U.S. Firms Shift Hiring Abroad
by David Wessel
Posted April 20, 2011

Our biggest export.... jobs!U.S. multinational corporations, the big brand-name companies that employ a fifth of all American workers, have been hiring abroad while cutting back at home, sharpening the debate over globalization's effect on the U.S. economy.

The companies cut their work forces in the U.S. by 2.9 million during the 2000s while increasing employment overseas by 2.4 million, new data from the U.S. Commerce Department show. That's a big switch from the 1990s, when they added jobs everywhere: 4.4 million in the U.S. and 2.7 million abroad.

The growth of their overseas work forces is a sensitive point for U.S. companies. Many of them don't disclose how many of their workers are abroad. And some who do won't talk about it. More...

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American Workers Got What They Deserved
by Ray Buursma
Posted April 1, 2011

PropogandaAre you an American employee? If so, today's column will likely offend you. If you'd rather not be offended, read no further. If you continue and then complain, I'm sorry, but that simply proves you're, well, stupid. But then again, stupidity plays a large role in today's topic.

Still reading? OK. You've had fair warning.

So you're an American employee. Maybe you make car parts. Maybe you're an engineer or designer. Maybe you're an accountant, store clerk or tradesman. Whatever you do, you're probably stupid or lazy. Yes, I wrote it, and I mean it. You are either stupid or lazy. Maybe both. More...

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Extend and Pretend is Wall Street Banks Friend
by James Quinn
Posted April 1, 2011

Bailout the Billionaire$The storyline that has been sold to the public by the Federal government, Wall Street, and the corporate mainstream media over the last two years is the economy is recovering and the banking system has recovered from its near death experience in 2008. Wall Street profits in 2009 & 2010 totaled approximately $80 billion. The stock market has risen almost 100% since the March 2009 lows. Wall Street CEOs were so impressed by this fantastic performance they dished out $43 billion in bonuses over the two year period to their thousands of Harvard MBA paper pushers. It is amazing that an industry that was effectively insolvent in October 2008 has made such a spectacular miraculous recovery. The truth is recovery is simple when you control the politicians and regulators, and own the organization that prints the money.

It should warm your heart to know that Financial Profits have amazingly reached their pre-crash highs. All it took was the Federal Reserve taking $1.3 trillion of bad loans off their books, overstating the value of their remaining loans by 40%, borrowing money from the Fed at 0%, relying on the Bernanke Put so their trading operations could gamble without fear of losses, and lastly by pretending their future losses will be lower and relieving their loan loss reserves. The banking industry didn't need to do any of that stodgy old school stuff like make loans to small businesses. Extending and pretending is much more profitable.

The big four of JP Morgan, Citigroup, Bank of America, and Wells Fargo should have undergone orderly bankruptcy liquidation in 2008. They took on a vast amount of leverage and a vast amount of risk. Their greedy bets went bad. In a true capitalist system, they would have failed. Instead, in our crony capitalist system, they were bailed out by taxpayers and continue to function as zombie banks pretending to be healthy. More...

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Globalists Target 100% State Owned Central Bank of Libya
by Patrick Henningsen
Posted March 31, 2011

Globalist takepver target?One seldom mentioned fact by western politicians and media pundits: the Central Bank of Libya is 100% State Owned. The world's globalist financiers and market manipulators do not like it and would continue to their on-going effort to dethrone Muammar Muhammad al-Gaddafi, bringing an end to Libya as independent nation.

Currently, the Libyan government creates its own money,the Libyan Dinar, through the facilities of its own central bank. Few can argue that Libya is a sovereign nation with its own great resources, able to sustain its own economic destiny. One major problem for globalist banking cartels is that in order to do business with Libya, they must go through the Libyan Central Bank and its national currency, a place where they have absolutely zero dominion or power-broking ability.

When the smoke eventually clears from all the cruise missiles and cluster bombs, you will see the Allied reformers move in to reform Libya's monetary system, pumping it full of worthless dollars, priming it for a series of chaotic inflationary cycles.

Libya also holds more bullion as a proportion of gross domestic product than any country except Lebanon, according to the London-based World Gold Council using January data from the International Monetary Fund. Will this gold remain in Libya once Allied forces have taken control of Tripoli, or will it lost, or exchanged for pallets upon pallets of paper aka US dollars? More...

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Secretive Plan For a Global Currency
by Ellen Brown
Posted March 28, 2011

Bank for International SettlementsBy acting together to fulfill these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector. We have agreed to support a general SDR (Special Drawing Rights) allocation which will inject $250bn into the world economy and increase global liquidity.– G20 Communiqué, London, April 2, 2009

Is the Group of Twenty Countries (G20) envisaging the creation of a Global Central bank? Who or what would serve as this global central bank, cloaked with the power to issue the global currency and police monetary policy for all humanity? When the world's central bankers met in Washington in September 2008 at the height of the financial meltdown, they discussed what body might be in a position to serve in that awesome and fearful role. A former governor of the Bank of England stated:

The answer might already be staring us in the face, in the form of the Bank for International Settlements (BIS)... The IMF tends to couch its warnings about economic problems in very diplomatic language, but the BIS is more independent and much better placed to deal with this if it is given the power to do so. More...

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Surf Warning: Tsunami to Lift Gold
by Jim Willie CB
Posted March 24, 2011

Gold to riseA point to never lose sight of in the last two weeks is that the USGovt manages a monetary nuclear reactor that is also in core meltdown, with USTreasury Bonds as the fuel rods whose radiation has a USDollar odor. The accelerating piles of debt and money have been routinely spread systematically in a grand complicated coordinated reaction, the core of which is the United States. Watch for any interruption to the massive flow of funds into the reactor, which the G-7 central bankers were keenly aware of last week, but without mention. As with all asset bubbles, the required funds grow exponentially to maintain the asset bubble, here the USTreasury Bond. The reactor cannot lose its flow, or else a meltdown occurs.

A systemic breakdown is occurring, in the Weimarization of the USDollar. Last Thursday, the world went Weimar. Gold noticed, and its scout Silver pulls the golden bridle bit. More...

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US may soon hit several debt walls
by Scott S. Powell
Posted March 7, 2011

National Debt ClockNobody wants to say it, but a major reason corporations are not creating many jobs and expanding in the United States is the increasing systemic risk being created by Washington.

The United States is supposedly in economic recovery, yet President Obama projects a record $1.6 trillion deficit for 2011 - with years more trillion-dollar annual deficits and escalating debt ahead. Government debt is growing by $120 billion a month, three times faster than the $40 billion monthly increase in GDP. What is going on?

The real issue is not the U.S. government's debt ceiling to accommodate ongoing deficit spending, but rather the wall that we are about to hit: foreign governments balking at financing U.S. debt except at significantly higher yields to offset the inflationary impact of the dollar's declining value. More...

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Crank Up the Casino! Wall Street's Newest Ploy to Gorge on America's Economic Suffering
by Lynn Parramore
Posted February 10, 2011

Record financial profitsOnce upon a time, as my colleague Tom Ferguson explained to me, English insurers discovered that scoundrels would buy insurance on ships they didn't own and then leak voyage details to the French navy, so they could collect. Guess who sells most municipal bonds? Many of the same people who'll be betting on their failure now. See a problem here? If you don't own the underlying asset, then credit default swaps are simply gambling. So what we are talking about is an extension of casinos to every state and city in America. The European Union is finally moving on these vultures. But not us, it seems.

The perversity of gorging on suffering never seems to bother the American financial sector. JPMorgan feeds on our hunger with its lucrative food stamp card business. And AIG gets into the game of letting strangers bet on your life. Why shouldn't hedge funds make a little extra dough from the collapse of your hometown? More...

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More Than Gold and Silver Prices Are Being Manipulated
By Patrick A. Heller
Posted January 27, 201
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Market manipulationOver time, I have explained how various activities in the gold and silver markets are not the signs of normal free market trading. Invariably, these abnormal trading tactics result in suppressing gold and silver prices.

In the split second of time after another brokerage enters a buy order for a stock, these ultra fast computers can automatically detect that order, arrange to buy the stock before the original order is filled, then sell the stock to the original purchaser at a price that was at least a few cents higher to the buyer than if the computer had never intervened. Compound this activity by thousands of trades per second all day long every day and you can understand how these brokerages have increased their reported profits despite lower volume from private investors. A side benefit to the US government is that this activity also tends to drive stock prices higher no matter what the state of the economy. More...

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Financial Crisis Was Avoidable, Inquiry Finds
By Sewell Chan
Posted January 26, 2011

Bernacke and GreenspanThe 2008 financial crisis was an "avoidable" disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.

The commission that investigated the crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors and risky bets on securities backed by the loans.

"The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done," the panel wrote in the report's conclusions, which were read by The New York Times. "If we accept this notion, it will happen again." More...

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12 Economic Collapse Scenarios That We Could Potentially See In 2011
by Chris Kitze
Posted January 21, 2011

Economic collapseWhat could cause an economic collapse in 2011? Well, unfortunately there are quite a few "nightmare scenarios" that could plunge the entire globe into another massive financial crisis. The United States, Japan and most of the nations in Europe are absolutely drowning in debt. The Federal Reserve continues to play reckless games with the U.S. dollar. The price of oil is skyrocketing and the global price of food just hit a new record high. Food riots are already breaking out all over the world. Meanwhile, the rampant fraud and corruption going on in world financial markets is starting to be exposed and the whole house of cards could come crashing down at any time. Most Americans have no idea that a horrific economic collapse could happen at literally any time. There is no way that all of this debt and all of this financial corruption is sustainable. At some point we are going to reach a moment of "total system failure".

So will it be soon? Let's hope not. Let's certainly hope that it does not happen in 2011. Many of us need more time to prepare. Most of our families and friends need more time to prepare. Once this thing implodes there isn't going to be an opportunity to have a "do over". We simply will not be able to put the toothpaste back into the tube again. More...

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Full Spectrum Dominance, The Pathology of U.S. and Global Monetary Policy
by Rob Kirby
Posted January 13, 2011

Derivatives GamblerThe purpose of this paper is to demonstrate how the Federal Reserve – through its proxy money centre banks – has taken complete control of the interest rate complex enabling them to arbitrarily price capital at or near zero. This has only been possible with accommodation of the ruling elite who mutually benefit from these policies.

Question:
Would any rational human being accept a $2,500.00 bet from somebody who only had 1 dollar in their pocket to lose?

Answer:
Under the watchful eye of the U.S. Federal Reserve, this occurs more than you'd think in the U.S. banking system with the likes of Morgan Stanley, with a market cap. Of a mere 16 billion at Jan. 20, 2009 versus a derivatives book in excess of 39 Trillion in notional. Why do you suppose this is allowed to happen? More...

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An Open Letter to Washington: How to Slash the Federal Budget Deficit and Save the U.S. Economy
by Martin Hutchinson
Posted January 11, 2011

Battered economyDear Mr. President and members of Congress:

With your policymaking actions of November and December, you have given the U.S. economy a short-term boost of adrenaline.

But these short-term gains carry a long-term cost. In the wake of the biggest financial crisis since the Great Depression, the U.S. federal government is looking at running $8 trillion in deficits over the next 10 years. If that forecast becomes a reality, the already-onerous national debt would soar to more than $20 trillion.

Given that outlook, without additional action on your part, the U.S. economy faces a precarious future and won't return to full health. More...

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Geithner Says the US Government Is Bankrupt
by Michael Rozeff
Posted January 10, 2011

GeithnerThe U.S. government is insolvent. Who says so? Timothy F. Geithner, the U.S. Secretary of the Treasury.

Geithner sent a letter to Congress on Jan. 6, 2011 asking for the debt limit to be raised. If it is not raised, he warned, the U.S. will default on its debt. In his words: "Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States."

He didn't say that the government will be inconvenienced. He didn't say that the government would be forced to muddle through by delaying payments, raising taxes, and cutting non-obligatory programs and services. He said the government will default. This means that the government doesn't have enough cash to pay its obligations to the many and sundry persons to whom it owes cash unless Congress authorizes an issue of even more debt. More...

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