Archive for the Economy Category

Nigel Farage Exposing New Giant Euro Banking Scam

Posted in Economy with tags , , , , , , , on June 19, 2012 by saynsumthn

Raoul Pal: The End Game ( Economic Crash Predicted)

Posted in Economy with tags , , , , , on June 4, 2012 by saynsumthn

Raoul Pal

Everyday, we hear some pretty grim predictions about the markets and the economy. But this is one of the more comprehensive and most gloomy outlooks we’ve ever seen.
Raoul Pal expects a series of sovereign defaults, the “biggest banking crisis in world history”, and asserts that we don’t have many options to stop it.
Pal previously co-managed the GLG Global Macro Fund. He is also a Goldman Sachs alum. He currently writes for The Global Macro Investor, a research publication for large and institutional investors.

See Presentation here

See the Pal’s presentation HERE

“The world has no engine of growth with most of the G-20 countries approaching stall speed at the same time. Now, what is that? G-20, that’s the 20 biggest countries in the world. Approaching stall speed. We have no engine of growth. Ask yourself this question: What is the engine of growth in the United States? Currently it is being set up that the engine of growth is the stimulus package, is the United States government. Is that real growth? I contend - and you know the answer - no,” Glenn explained.

“The western world is about to enter a second recession in an ongoing depression. For the first time since the 1930′s, we’re entering a recession. Before industrial production, durable goods orders, employment, and private sector GDP have made back their previous highs. Hear that again. For the first time since the 1930′s before we’ve made if back up on our feet. Usually we have a recession, it starts to grow again, and then we come back down. This is – this is a new trend.”

“Fact: This will to be the lowest cyclical peak in GDP growth in G-7 history. These are the weakest ever foundations on which to enter a recession.”

“The problem is down to one thing: Debt.”

“This is significant. The 10 largest debtor nations on earth have total debts of over 300% of world GDP. History tells us that when sovereign defaults occur, what does that mean? Sovereign defaults? Sovereign default, if a sovereign default occurs, that means Greece goes out of business, Spain goes out of business, Portugal goes out of business. The Euro is a bubble. It will crash,” Glenn said.

“History tells us when sovereign defaults occur, they come in a series of defaults. We need to understand history in order to grasp the present. The domino effect. In history when you have a default, one falls into the other and the other and the other. So, he says, what is coming? EU sovereign debt defaults. UK sovereign default. Japan sovereign default. South Korea, sovereign default. China, sovereign default.”

Glenn Beck continues to make comments here

Former Shell Oil Chief Predicts $5 Gas by 2012

Posted in Economy with tags , , , , , , , , , on January 4, 2011 by saynsumthn

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Former Shell Oil Chief Predicts $5 Gas by 2012, posted with vodpod

Russia and China reject dollar; past Secret Meetings by World leaders call for new unified currency

Posted in Economy, New World Order with tags , , , , , , , , , , , , , , , on November 29, 2010 by saynsumthn

St. Petersburg, Russia – Fox News Reports:

China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

China Daily is reporting that a new economic bond between Russia and China has emerged, reporting that Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

“About trade settlement, we have decided to use our own currencies,” Vladimar Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

“That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China’s Tianwan nuclear power plant, the most advanced nuclear power complex in China.

Back in 2009,The UK Independent reported the “Demise of the Dollar” not simply between Russia and China but Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

The Wall Street Journal has called the most recent move of Russia and China, China’s increasingly assertive approach to shaping the global response to the financial crisis.

WSJ said that, China is on the offensive, backed by other emerging economies such as Russia in making clear they want a global economic order less dominated by the U.S. and other wealthy nations.

Some speculate that the rising US debt is spooking China and other nations and that the Obama administration’s move to print $600 billion to stimulate the economy is having a negative effect on the world currency market.

Pro-Obama supporter asks “Is this really my new reality? I am exhausted of defending you”

Posted in Economy, Obama with tags , , , , , , , , on September 21, 2010 by saynsumthn

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Town Hall Questioner To Obama: “I’m Exhausted O…, posted with vodpod

Obama’s reply – here

Votes stimulas? Obama Admin squashes rumors of mortgage bailout before midterm elections

Posted in Economy, Obama with tags , , , , , , , , , , , on August 6, 2010 by saynsumthn

Reuters reported that Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.

The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. A few key points:

1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.

2) Wall Street banks are alerting their clients privately to this possibility. Here is what some are cautiously saying publicly. This from Goldman Sachs:

GSE policies are one of a dwindling number of policy levers the administration has left to pull, so it is conceivable that changes could be made, though there is no sign that a policy change is imminent. The Treasury’s essentially unlimited ability to provide financial support to the GSEs creates an interesting situation over the next twelve months: the GSEs could potentially be used to provide additional support for the housing market and, to a lesser extent, the broader economy in 2H 2001.

And this from Mizuho Securities:

As policy makers ponder their next move the data suggests that they face not only a stalling recovery but a growing risk of deflation taking root in the economy. As a result, the Administration has turned back to industrial policies by approving the purchase of a sub-prime auto lender by GM as a means for pumping up domestic sales, especially since the latest auto sales data indicates that consumers are still responsive to incentives. This precedent increases the risk that the government will use its control of Fannie and Freddie to increase consumer cash flow and juice the economy again.

Moreover, Morgan Stanley is pushing a mortgage relief plan directly to Congress. On August 3, a top Morgan Stanley economist recommended to the Senate Budget Committee that Fannie and Freddie ease their lending standards to allow millions of Americans to refinance their mortgages.

3) Keep in mind the political and economic context. The nascent recovery is already running out of steam. Wall Street economists just downgraded the government’s second-quarter GDP estimate of 2.4 percent to around 1.7 percent. And as even Treasury Secretary Timothy Geithner is warning, the unemployment rate may well begin to rise back toward the politically toxic 10 percent level given such sluggish growth. Many in the White House thought the unemployment rate would be dropping sharply by this point in the recovery.

But that is not happening. What is happening is that the president’s approval ratings are continuing to erode, as are Democratic election polls. Democrats are in real danger of losing the House and almost losing the Senate. The mortgage Hail Mary would be a last-gasp effort to prevent this from happening and to save the Obama agenda. The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.

4) And don’t think the White House is worried about financial market reaction. If they thought it would pass Congress, they would be submitting a $200 billion Stimulus 2.0 (3.0?, 4.0?) right now.

August is supposed to be a slow month for Washington politics. But maybe not this one.

However- the Wall Street Journal reports:

Federal Officials: No Plans for Expanding Refinance Programs

Obama administration officials knocked down rumors on Thursday about any plan for new programs–dubbed an “August Surprise” –to streamline refinancing or cut mortgage balances for homeowners in a bid to stimulate the economy without asking Congress for money ahead of the midterm elections.

Speculation has intensified over the past week as some economists have proposed that the government put cash in more Americans’ pockets by making it easier to refinance. A news report on Thursday suggested that such stimulus might also include a plan to lower mortgage balances for some homeowners.

These reports have worried mortgage investors, sending prices down. But elements of the so-called surprise programs already exist in far more modest forms and there are no plans expand them, administration officials said. The Obama administration said in March that it would create a pair of programs later this year that would allow mortgage servicers and investors to voluntarily reduce loans balances.

One of those programs—which hasn’t been finalized yet but will be soon—will allow mortgage investors to refinance current homeowners who are underwater, or owe more than their homes are worth, into loans backed by the Federal Housing Administration if investors are willing to take a haircut.

And it already has had for more than one year a separate program that allows some homeowners to refinance underwater loans. That initiative—called Home Affordable Refinance Program, or HARP—has fallen short of its initial goals.

Administration officials dismissed the idea that something bigger might be in the works. “The Administration is not considering a change in policy in this area,” said a Treasury Department spokesman.

What about a program to “streamline” refinance borrowers without regard for their credit scores or equity position? “There is not any plan for expanding into a high [loan-to-value] refinance program at this time,” said FHA Commissioner David Stevens.

Economists and mortgage analysts have suggested that the government could easily create economic stimulus by removing barriers to refinancing. Mortgage rates continue to reach record lows: the weekly survey of 30-year fixed-rate loans by Freddie Mac averaged 4.49%, an all-time record. Rates on 15-year fixed-rate loans averaged 3.95%, also a record.

But millions of borrowers haven’t taken advantage of those rates because they can’t qualify—their incomes have fallen, their credit score isn’t pristine, or they don’t have much or any home equity—or because they don’t want to pay higher refinance fees. Morgan Stanley economist David Greenlaw last week said that the government could produce $46 billion in savings by refinancing 37 million loans held or guaranteed by Fannie Mae, Freddie Mac, or government agencies.

But there are reasons to be skeptical that the government would adopt such a program now. First, it would be hard to make it work, and the administration knows this all too well. Both HARP and the companion modification program, HAMP (Home Affordable Modification Program), have had numerous frictions that have hindered their effectiveness. Banks have struggled to implement the program and borrowers haven’t participated near the levels expected. Rather than create an entirely new program—which could take weeks if not months to get running—the administration is more likely to make tweaks to the programs it has already built.

And it’s still not clear how much economic punch such a program could pack. Analysts at Goldman Sachs and Credit Suisse say such a program would generate an average annual savings of $15 billion, about one third of Mr. Greenlaw’s estimate, while analysts at Barclays Capital say the actual savings would be even lower, at around $6 billion annually.

Another problem, this type of stimulus isn’t free. Even though the government wouldn’t pay for it, mortgage investors would because the loans they thought had a certain return would pay off sooner than expected, leaving investors with money to invest at lower rates.

“It would be far from costless for the banks, [Fannie and Freddie], mutual fund investors, sovereign portfolios and other institutions now holding agency [mortgage-backed securities]. They would be the providers of the windfall,” writes Deutsche Bank analyst Steven Abrahams. “Given the substantial resources invested in rebuilding bank capital and bringing the sector back to full strength, the impact of ruthless refinancing might give policymakers reason to pause.”

Ultimately, investors would price that uncertainty into mortgages, raising rates for future borrowers. Mr. Abrahams estimates that such a program could raise future borrowers’ rates by 0.4 percentage points.

In addition, such a proposal would ostensibly be designed to improve the economy before the midterm elections, but the politics aren’t as obvious at they seem. Helping some homeowners could breed resentment that another favored political class is getting a bailout. And if any of those moves were to create bigger losses for Fannie Mae and Freddie Mac, that puts an even brighter spotlight on those wards of the state, whose futures are about to be addressed by the administration.

Protect yourself from Obama tax hikes

Posted in Economy, Obama with tags , , , , , , , , , , , , , , on July 6, 2010 by saynsumthn

“This card a tangible reminder that Obama has deliberately broken his central campaign promise not to raise any form of taxes on Americans earning less than $250,000. The last President to break his tax pledge – Bush 41 – served only one term.” – Grover Norquist, president of Americans for Tax Reform

Please use the form below to get your Obama Tax Hike Exemption Card

You may have noticed that President Obama has broken his central campaign promise – a “firm pledge” that Americans making less than $250,000 would not see “any form of tax increase.” He first broke this pledge sixteen days into his presidency when he signed a 156 percent increase in the federal excise tax on tobacco. And Obamacare contains 21 tax increases – several of which violate his “firm pledge”.

To protect you from these tax hikes, Americans for Tax Reform presents the “Obama Tax Hike Exemption Card”. The card fits neatly in your wallet and contains a list of the tax hikes signed into law by President Obama that violate his tax pledge, as well as a few other taxes that have been threatened: a European-style Value-Added Tax, Cap and Trade taxes, and even a federal soda tax.

Fill out the form below to get your Obama Tax Hike Exemption Card. If you’re interested in sending us a video on how you used the card, please click here.

How to use the card:

Step 1: Present the card to merchants, employers, and tax authorities.

Step 2: If challenged, pleasantly ask: “Are you calling President Obama a liar?”

Click here to find out of your member of Congress voted for these taxes

“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”

–Candidate Barack Obama, Sept. 12, 2008

“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime.”

–President Barack Obama, Feb. 24, 2009

“The statement didn’t come with caveats.”

–Obama spokesman Robert Gibbs, April 15, 2009, when asked if the pledge applies to healthcare