Socialist and Fascist Governments Run America and Europe
Socialist and fascist governments run America and Europe and they are falling further and further into the collectivist trap every day. Everyone wants to be rescued from their mistakes and that simply can’t happen. In the meantime to finance this illusion they both go deeper and deeper into debt.
Europe is far more advanced into the socialist destructive process. The euro zone is headed toward dissolution and perhaps the European Union as well. We will have the answer on the euro zone within two years. The beginning of the end has begun with Greece’s problems and the reluctance of Germany to bail that country out. Due to this reticence Germany has been threatened by other members of the euro zone and the EU, which was more than dumb. What they do not understand is what they have put into motion can’t be stopped. The euro and the euro zone was a political creation doomed to failure from its very beginning. The masters of Europe, the “Black Nobility” are watching their euro zone being destroyed, as well as its mission to usher in a one-world currency and government. Germany doesn’t want to cooperate, so they are being referred to as fascists again. Reality is snapping at their heels and they do not like it.
Political control of Europe held by the Bilderbergs is slipping from their grasp and they are not happy about it. In Germany and in other European countries the people are speaking out against the control of their countries by Illuminist agents or the speculators who have run their countries into debt and into the ground as they have in America as well. You have to remember as well that there are 19 countries close to or already in a state of bankruptcy and there is little hope of reversal in any of them. The collapse of these countries is inevitable; it is only a question of when. The havoc being blamed on speculators has foundation, but the profligate governments put in power by the elitists are what really laid the groundwork for failure and that we believe was done deliberately.
Socialism in Europe is nothing new. It began with paternalism in the 19th century and it has held the people in bondage ever since.
The re-imposition of what has been known historically as British mercantilism, presently known as free trade, globalization, offshoring and outsourcing has laid waste the production of goods and services in the US and to a lesser degree in Europe. Politicians and corporate opportunists have been very willing to expedite the demise of American and European manufacturing, all but totally destroying their economies. Yes, the emerging world will escape the brunt of the economic onslaught, but only by degree. No on can escape what is coming. Keep in mind 60-1/2% of all countries’ foreign exchange reserves are in dollars and at least 20% have to be in euros. As both currencies fall in value versus other currencies, purchasing power is lost by the holders. In addition these conditions are part of the cause of all currencies falling against gold. In the end even non-participants suffer from the debt, dislocation and socialism. The theory of decoupling does not work. The third and second worlds are not going to prosper as the US and Europe collapse and to think so is very short sighted.
Financially and economically the previous two administrations were a disaster and the current one in many ways is even worse. We still have two very expensive occupations and one current war, the cost of which is conveniently off budget.
Corruption reigns in the House and the Senate and budget deficits are the largest in history. There is little incentive or even available funds to invest, as higher taxes will be proposed after the next election in November. The spending is endless and you will pay higher taxes to pay for it. The hole that this Congress and administration is digging will finally destroy America financially – bills that are no longer payable – debt far beyond America’s ability to pay it back. The welfare state is upon you.
Sovereign debt will become overwhelming over the next two years. A new class of junk bonds will overwhelm debt markets, as the big hitters, China and Japan, stop buying and slowly move into commodities and gold and silver to protect themselves. Banking and Wall Street have deliberately taken down the financial system and further enriched themselves in the process leaving the American taxpayer with unpayable debt.
In addition, we are saddled with $1.35 quadrillion in derivatives of which trillions are in naked credit default swaps.
Debasement is the order of the day. Markets do strange and unusual things as our government blatantly manipulates all markets 24/7 via “The President’s Working Group on Financial Markets.” Some markets such as gold and silver are deliberately suppressed and the world’s stock markets defy gravity staying up perpetually with no logical means of support. You won’t hear this on CNBC or mainstream media, but it is the reality of what is really going on in the financial world.
As stimulus assistance moves to its peak in March retail sales continue to slightly improve, although results are still in negative territory in spite of more than $800 billion being injected into the economy. The best description that can be applied is a stabilizing sideways trend. Unfortunately as stimulus exhausts itself, sales and the general economy will be hard put to continue even slight improvement. When those with money to spend were polled those with income twice the average have cut buying by 13% from January to February and 19% y-o-y. Those with the means have to spend, if they do not there can be no recovery. As you can see that is not happening. Dropping home values and layoffs at the top of the ladder have decimated the prime mortgage market and with it spendable income. A 19% drop in spending is a normal reaction to these unfortunate events and we can expect more of the same unless the Fed stops removing liquidity and more stimuli are added. The problem is we cannot do this indefinitely, because the debt markets are unwilling to fund such foolish expenditures. Why do you think your government wants your retirement plans; Social Security, Medicare and Medicaid are already broke. People have contributed and worked a lifetime only to be screwed by their government, which has become a den of thieves. Unemployment is 22-1/8% and it is headed higher. We predicted 2-1/2 years ago, when personal consumption was 72% of GDP, that consumption would revert to the long term mean of 64.5%, and so it will. If the elitists follow what we think is their current plan, we see even lower figures over the next several years. A shift is taking place that will influence spending for years to come. We are about to revisit the economic mindset of the 1950s and 60s. The rich and well-to-do will continue to cut back and the social climbing affluent will all but disappear. You can’t eat pretensions.
In regard to unemployment it is deceitful for government to trumpet U-3 at 9-7/8%, when their own U-6 shows unemployment to be officially 16-7/8%, including the birth/death ratio, which is totally bogus. That means the real unemployment rate is 22-1/8%.
Most observers have zeroed in on the budget deficit of $1.6 trillion. Equally as important is servicing old debt as well as new debt. Refinancing for the Treasury is a problem. The two biggest holders of US debt continue to buy less or none, just rolling current commitments. In February, Japan was a net seller of $300 million and China sold $5.8 billion worth. The big question is will the Fed have to continue to buy 80% of issuance as they did this past year? That certainly will continue to stoke inflation. Over the next five years $1.2 trillion of old debt has to be refinanced, which includes $526 billion in 2012.
The stampede of homeowners from underwater and foreclosed residential real estate is gaining momentum.
A group of 14 senators have accused China of currency manipulation. This could start a trade war and force the US to implement tariffs on goods and services.
Even if all this gets refinanced everyone else will get crowded out and interest rates will have to rise, especially if America’s triple A rating is lowered. That shuts out medium and small companies and individuals, which will get little or nothing. How will commercial mortgages get refinanced, some $60 billion in just two years. These are huge numbers. It is no wonder the government wants to exchange guaranteed annuities for your pension plans. As you can see the next few years will be very difficult.
For the week of March 17th, the commercial paper market fell $22.4 billion to $1.122 trillion.
The President’s Working Group on Financial Markets is trying to block financial reforms being proposed by Sheila Bair’s FDIC. This is what Brooksley Born went through 12 years ago.
Tariffs on goods and services are in the way. 130 Congressmen are co-sponsors of a bill to take action against China and its currency policies. There are hundreds of nations that have been doing the same thing for years. This currency manipulation bill has been a long time in coming. Not only China, but also most of the rest of the world has taken unfair advantage of America by creating an unlevel playing field. This has been exacerbated by free trade, globalization, offshoring and outsourcing. China has to come to terms with the deal they made and that was to take on depreciating dollars for major market penetration. The US received inexpensive goods and low inflation in return. There is nothing resilient about China’s economy, especially if tariffs are erected. The downside for the US is most goods and services in the US would be more expensive than they would be otherwise, but unemployment wouldn’t be over 22%, it might be 8%. This is the way we operated for 200 years and we became the strongest nation in the world.
We should not be afraid to upset China and others; we have ourselves to think about, not some country that is essentially a slave labor camp run by a totalitarian government. It is an unnatural situation for America to import 35% of their clothing from one nation.
America and many other nations will devalue over the next few years and that should solve the dollar and debt problem, not only for the US, but for many other nations as well. Those events will allow those nations to rebuild to bring more balance to the world economy. Yes, interest rates will rise and we will be back in the 1950s and 1960s again but that is fine; Americans can handle the challenge. This all can be more easily accomplished by getting rid of the Federal Reserve and its monopoly on monetary policy, by turning their mission back to our Treasury where some transparency can exist.
The more Treasuries that other nations don’t buy the quicker America moves toward devaluation and default, which will take the whole world down with it financially. A nation cannot long survive financially when America continues to produce massive deficits. Soon 50% of US tax revenues will be needed to service debt. A nation cannot survive with such a burden. This is why we are convenienced tariffs; devaluation and default are on the way not only for the US but for most other countries as well. There is no other way out.
Rep. Bachus demands hearing on Lehman report, says Fed, SEC may have ‘turned a blind eye’ on fraud “Either the SEC and the New York Federal Reserve failed to discover the ongoing accounting fraud at Lehman, or they turned a blind eye to the ongoing fraud,” Bachus said in a letter to the committee’s chairman, Barney Frank… www.nydailynews.com/money/2010/03/17/2010-03-
17_rep_bachus_demands_hearing_on_lehman_report_says_fed_sec_may_have_turned_a_blind.html
The Federal Reserve Board must disclose documents identifying financial firms that might have collapsed without the largest U.S. government bailout ever, a federal appeals court said.
The U.S. Court of Appeals in Manhattan ruled today that the Fed must release records of the unprecedented $2 trillion U.S. loan program launched primarily after the 2008 collapse of Lehman Brothers Holdings Inc. The ruling upholds a decision of a lower-court judge, who in August ordered that the information be released.
The Fed had argued that disclosure of the documents threatens to stigmatize borrowers and cause them “severe and irreparable competitive injury,” discouraging banks in distress from seeking help. A three-judge panel of the appeals court rejected that argument in a unanimous decision.
The U.S. Freedom of Information Act, or FOIA, “sets forth no basis for the exemption the Board asks us to read into it,” U.S. Circuit Chief Judge Dennis Jacobs wrote in the opinion. “If the Board believes such an exemption would better serve the national interest, it should ask Congress to amend the statute.”
The opinion may not be the final word in the bid for the documents, which was launched by Bloomberg LP, the parent of Bloomberg News, with a November 2008 lawsuit. The Fed may seek a rehearing or appeal to the full appeals court and eventually petition the U.S. Supreme Court.
Homeland Security Secretary Janet Napolitano will freeze funds for expanding the virtual fence that was supposed to monitor most of the 2,000-mile southern US border by 2011, she said yesterday. Currently, it covers only part of Arizona’s boundary with Mexico.
The virtual fence is a network of cameras, ground sensors, and radars designed to let a few dispatchers watch the border and send out Border Patrol agents as needed.
Technical problems and delays have put the virtual fence in jeopardy. Two months ago, Napolitano ordered a reassessment. So far, the project has cost $672 million.
e continuation of a pattern in the U.S.”
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., increased holdings of bonds from non-U.S. developed nations for a fourth month, taking them to the highest level since May 2004.
Gross raised the proportion of the securities in the Total Return Fund to 19 percent of assets in February from 18 percent in January, according to a report placed on the company’s Web site. He increased U.S. government debt to 35 percent from 31 percent, the first increase since October 2009, and lowered net cash to 2 percent from 9 percent.
Gross, 65, co-chief investment officer at Pimco in Newport Beach, California, advised investors in a commentary published in January to seek investments in “less levered” countries such as China, India and Brazil whose economies are not as prone to “bubbling.” He called the U.K. “a must to avoid,” while recommending Germany and Canada.
German and Greek bonds have rallied this week as Standard & Poor’s said it’s no longer planning an imminent downgrade of Greece. S&P affirmed Greece’s BBB+ rating, removing it from “creditwatch negative.” The U.S. and U.K. have moved “substantially” closer to losing their AAA credit ratings, Moody’s Investors Service said on March 15.
The Federal Reserve’s decision to let its mortgage-debt purchase programs end this month risks driving up home-loan rates and worsening the housing crisis, Nobel laureate Joseph Stiglitz said.
“The withdrawal of the support risks increasing the interest rate, increasing the number of foreclosures and exacerbating the strain, the stress, that American families are already facing,” Stiglitz said in an interview in Tokyo. He said officials “misjudged things,” and predicted foreclosures and bank failures this year will exceed the 2009 and 2008 totals.
Stiglitz said the main dangers for the global economy are that central banks will “exit too rapidly” from measures adopted during the crisis, propelled in part by an “irrational” fear among some investors that inflation will soar. The liquidity created by central banks battling the recession isn’t likely to fuel consumer prices because of subdued consumer demand, he said.
The warning by the Columbia University economics professor and former chairman of the White House Council of Economic Advisers is a contrast with the steps being taken by the Fed and its counterparts to rein in monetary stimulus to prevent a buildup of new imbalances that could destabilize the economy. In Asia, central banks are moving toward raising interest rates to prevent asset-price bubbles.
The U.S. and the U.K. have moved “substantially” closer to losing their AAA credit ratings as the cost of servicing their debt rose, according to Moody’s Investors Service.
The governments of the two economies must balance bringing down their debt burdens without damaging growth by removing fiscal stimulus too quickly, Pierre Cailleteau, managing director of sovereign risk at Moody’s in London, said in a telephone interview.
March 12 MBA Mortgage Applications decline 1.9%, March 14 ABC/Wash. Post Cons. Confidence rise to -43 vs -49.
The US leading index grew 0.1% in line with forecasts in February compared to January’s more robust 0.3% increase.
The Leading Indicators released by the Conference Board measures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, permits for new housing construction, stock prices and yield curve. It is considered as a measure for economic stability in United States. This event generates some volatility for the USD
The economy will keep expanding without a pickup in inflation that would require the Federal Reserve to raise interest rates, reports today indicated.
Consumer prices were unchanged in February, the first time they didn’t increase since March 2009, Labor Department figures showed today in Washington. The index of leading indicators rose 0.1 percent last month, the 11th straight gain, according to the Conference Board, a New York research group.
Other reports showed manufacturing accelerated this month and fewer Americans filed for jobless benefits, signaling the rebound from worst recession since the 1930s is poised to generate jobs. FedEx Corp. is among companies benefitting from a global expansion as businesses rebuild depleted stockpiles and exports climb.
The Philadelphia Federal Reserve Bank said its business activity index rose to 18.9 in March from 17.6 in February.
Economists had expected a reading of 18.0, based on the results of a Reuters poll, which ranged from 14.0 to 23.0.
Any reading above zero indicates expansion in the region’s manufacturing.
The survey, which covers factories in eastern Pennsylvania, southern New Jersey and Delaware, is seen as one of the first monthly indicators of the health of U.S. manufacturing
Fewer Americans filed first-time claims for jobless benefits last week for the third consecutive time, a sign the labor market is gradually improving along with the economy.
First-time jobless applications dropped by 5,000 to 457,000 in the week ended March 13, in line with forecasts, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance increased, and those getting extended benefits also rose.
Companies are cutting fewer jobs as sales rise and the economy recovers from the deepest recession since the 1930s. A sustained increase in payrolls is needed for consumer spending, which accounts for about 70 percent of the economy, to accelerate.
Effective April 16, Walgreens drugstores across the state won’t take any new Medicaid patients, saying that filling their prescriptions is a money-losing proposition — the latest development in an ongoing dispute over Medicaid reimbursement.
The company, which operates 121 stores in the state, will continue filling Medicaid prescriptions for current patients.
In a news release, Walgreens said its decision to not take new Medicaid patients stemmed from a “continued reduction in reimbursement” under the state’s Medicaid program, which reimburses it at less than the break-even point for 95 percent of brand-name medications dispensed to Medicaid patents.
Walgreens follows Bartell Drugs, which stopped taking new Medicaid patients last month at all 57 of its stores in Washington, though it still fills Medicaid prescriptions for existing customers at all but 15 of those stores.
Doug Porter, the state’s director of Medicaid, said Medicaid recipients should be able to readily find another pharmacy because “we have many more pharmacy providers in our network than we need” for the state’s 1 million Medicaid clients.
A judge in Milan ordered banks JPMorgan, Deutsche Bank, Depfa, UBS and 13 people to stand trial for alleged fraud in the sale of derivative instruments, the prosecutor told AFP on Wednesday.
“JPMorgan, Depfa, Deutsche Bank and UBS have been ordered to stand trial for fraud along with 11 of their managers and two former Milan city officials,” said Alfredo Robledo, a prosecutor at the Milan court.
The four banks allegedly hid the risks in the derivative financial products they sold to the city of Milan while restructuring its debt, promising that the products would save the city money.
Idaho’s governor is the first state chief executive to sign a measure requiring his attorney general to sue the federal government if the U.S. Congress passes health care reform.
There is now no question that the elitists are very concerned that the general public worldwide is discovering what they have been up too and they are not happy about it. Many are discovering that the world faces a major crisis deliberately created by these self-appointed masters of the universe. Nowhere is this better illustrated than in the discovery that Greece was cooking the books with the help in this fraud of Goldman Sachs. The problem is political and business leaders have known for years what has been going on.
Unemployment rates in 363 U.S. metropolitan areas rose in January, and 346 areas reported year-on-year declines in their number of jobs, the Labor Department said on Friday.
Nearly 200 metropolitan areas reported jobless rates of at least 10 percent in January, showing that unemployment problems persist at the local level.
California has been especially hard hit during the recession that began in late 2007, and the Labor Department data showed the state’s jobs situation continues to deteriorate, with an overall unemployment rate of 12.5 percent in January.
The three areas with the highest jobless rates in the country, all above 20 percent, were all located in California, the most populous U.S. state.
The Riverside and San Bernardino area of Southern California, along with Detroit-Warren-Livonia in Michigan had the highest unemployment rates for areas with populations of 1 million or more. While Detroit has been hurt by fluctuations in the automobile industry, Southern California has suffered mostly from the bursting of the housing bubble.
The sprawling California metropolis by the ocean formed by Los Angeles, Long Beach and Santa Ana, meanwhile, lost the most jobs over the year, at 248,600.
The Federal Reserve Board today removed an exemption it had given to six banks at the start of the financial crisis in 2007 aimed at boosting liquidity in financing markets for mortgage- and asset-backed securities.
The so-called 23-A exemptions, named after a section of the Federal Reserve Act that limits such trades to protect bank depositors, were granted days after the Fed cut the discount rate by half a percentage point on Aug. 17, 2007. Their removal is part of a broad wind-down of emergency liquidity backstops by the Fed as markets normalize.
The decision in 2007 underscores how Fed officials defined the mortgage-market disruptions that year as partly driven by liquidity constraints. In hindsight, some analysts say that diagnosis turned out to be wrong.
“It was a way to prevent further deleveraging of the financial system, but that happened anyway,” said Dino Kos, managing director at Portales Partners LLC and former head of the New York Fed’s open market operations. “The underlying problem was solvency. The Fed was slow to recognize that.”
The Fed ended the exemptions in nearly identical letters to the Royal Bank of Scotland Plc, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Deutsche Bank AG, and Barclays Bank Plc posted on its Web site today.
Goldman Sachs Group Inc. gave Chairman and Chief Executive Officer Lloyd Blankfein $9.8 million in total compensation for 2009, the firm said today in a regulatory filing.
American International Group Inc. Chief Executive Officer Robert Benmosche, the highest-paid executive at the bailed-out insurer, will get a $7 million salary again this year, said paymaster Kenneth Feinberg.
Ex-Tyco International Ltd. Chief Executive Officer L. Dennis Kozlowski, jailed for stealing millions of dollars, wants a U.S. court to order the company to pay him tens of millions from his retirement account.
Lawyers for Kozlowski filed court papers in which they claim that Tyco breached its retirement agreement by refusing to pay him the lump sum he has demanded. As of October 2008, the value of Kozlowski’s retirement account was $75.9 million, according to the court papers, which are part of a 2002 lawsuit between Tyco and Kozlowski.
Kozlowski and former Chief Financial Officer Mark Swartz were convicted in 2005 of securities fraud, grand larceny and falsifying business records. The jury in New York State Supreme Court found they stole about $137 million from Tyco through unauthorized bonuses and the abuse of company loans.
The Friday Night FDIC Financial Follies brought us 7 more failures this week. At the current rate we could see 300 failures this year.
Advanta Bank Corp., owned by the bankrupt credit-card issuer, was shut by regulators along with three lenders in Georgia as the number of failed banks this year climbed to 37.
Advanta was closed by Utah’s regulator, according to a statement today from the Federal Deposit Insurance Corp., which was named receiver. The FDIC couldn’t find a buyer for Advanta’s business, and will mail checks to insured depositors. Georgia’s Appalachian Community Bank, with $1 billion in assets, was closed along with lenders in Minnesota, Alabama and Ohio.
“Banks made loans they shouldn’t have,” said Alan Hess, a professor at the University of Washington’s Foster School of Business. “A lot of the banks in Washington and elsewhere are going out of business because of commercial real estate.” Four banks in Washington state have been seized this year.
Caterpillar Inc. said the health-care overhaul legislation being considered by the U.S. House of Representatives would increase the company’s health-care costs by more than $100 million in the first year alone.
In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan “because of the substantial cost burdens it would place on our shareholders, employees and retirees.”
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Whistler Blowers, Insiders
Amen absolutely and that is why our country is rapidly becoming a third world cesspool!