Archive for August, 2010

Daily Readings 08-31-2010

By: admin
Published: August 31st, 2010

Neither Party Deserves to Lead – OpinionVoters want a clear plan to balance the budget and create decent jobs, and to win their confidence one or the other party must come clean about what that take

TheDC analysis: America’s hidden debt – With Fannie and Freddie debt trading at prices nearly identical to Treasury debt, however, the markets assume that the taxpayers are on the hook, which means that somebody has to lose big.

U.S. Auto Sales May Hit 28-Year Low as Discounts FlopU.S. auto sales in August probably were the slowest for the month in 28 years as model-year closeout deals failed to entice consumers concerned the economy is worsening and they may lose their jobs. The summer of recovery continues…

Record number in government anti-poverty programs - More than 50 million Americans are on Medicaid up at least 17% since the recession began in December 2007. More than 40 million people get food stamps, an increase of nearly 50% during the economic downturn. More than 4.4 million people are on welfare, an 18% increase during the recession. More than ever you may be sure, that we are in a depression

Cash-Poor Governments Ditching Public Hospitals - “Faced with mounting debt and looming costs from the new federal health-care law, many local governments are leaving the hospital business, shedding public facilities that can be the caregiver of last resort.”

Obama Administration Plans Mortgage Aid, HUD’s Donovan SaysThe Obama administration plans to set up an emergency loan program for the unemployed and a government mortgage refinancing effort in the next few weeks to help homeowners after home sales dropped in July. Government should stop propping the market and let the house prices fall.

Surprise! Banks help more homeowners than ObamaBanks have realized that foreclosing on home after home after home may not be in anyone’s best interest — least of all their own. So they’ve ramped up the number of loan modifications they’re handing out to their delinquent clients.

Ron Paul questions whether there’s gold at Fort Knox, NY Fed - Rep. Ron Paul (R-Texas) said he plans to introduce legislation next year to force an audit of U.S. holdings of gold.

Ron Paul: Depression Is Coming – “The bigger question is what have been our commitments or loans,” Paul said. “That’s why I want an audit of the Fed and to check all the agreements they have with foreign central banks and governments.”

Gold Rallying to $1,500 as Soros’s Bubble InflatesGold may rise as high as $1,500 next year, 21 percent more than the $1,235 traded at 9 a.m. in London, according to the median in a Bloomberg survey of 29 analysts, traders and investors.

CLIMATE CHANGE LIES ARE EXPOSED - The panel was forced to admit its key claim in support of global warming was lifted from a 1999 magazine article. The report was based on an interview with a little-known Indian scientist who has since said his views were “speculation” and not backed by research.

Why Do Heavy Drinkers Outlive Nondrinkers?For reasons that aren’t entirely clear — abstaining from alcohol does actually tend to increase one’s risk of dying even when you exclude former drinkers. The most shocking part? Abstainers’ mortality rates are higher than those of heavy drinkers. LOL… Cheers!

The Folly of Subsidizing UnemploymentMy calculations suggest the jobless rate could be as low as 6.8%, instead of 9.5%, if jobless benefits hadn’t been extended to 99 weeks.

State Default Risk – Illinois has the highest default risk of all states at 303.2 bps — even higher than California.  California ranks 2nd, followed by Michigan, New York, and New Jersey.  Not to anyone’s surprise, these are basically the five states in the country with the biggest fiscal problems at the moment.  States that appear to be in pretty good shape include Texas, Virginia, Maryland, and Delaware.

Government Pay: Now For The Really Bad NewsHigh federal pay means less capital formation, lower wages and reduced innovation.

The $31 Billion Revenue FantasyThose who make $200,000 a year are 3% of all taxpayers but pay 52% of all income taxes.

Our Schools, Dumb and Dumber - As the nation’s children return to elementary and secondary schools, it is increasingly essential that their parents and communities coast to coast realize how poorly served they are and how their learning environment is increasingly tainted by a socialist agenda. I think that the education is the biggest problem USA faces in near future

ObamaCare makes more lobbyistsPeter Suderman at Reason explains how ObamaCare is a stimulus for health-care lobbyists…

LOL – She’s got the mike – the following picture may be NSFW…

Read the rest of this entry »

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China: Rumors of the Central Bank Chief’s Defection

By: admin
Published: August 30th, 2010

From Stratfor Global Intel

Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou. Although Ming Pao on Aug. 30 published a report on its website indicating that the prior report was fabricated by a mainland news site that had attributed the false information to Ming Pao, rumors of Zhou’s defection have spread around China intensively, and Zhou’s name has been blocked from Internet search engines in China.

read the rest here

That is what happens when the markets are not free.

Here in America we have the crony capitalism where the politicians  rewarded the banksters, who took  big risks and failed the investors, while in China they have the centralized capitalism, where politicians punish people with death, if they take any risk and fail the investor – in our case the Chineese Comunist Party.

Do you remember what happened with the soccer team from North Korea that got 7 goals in one match and failed to go forward in South Africa? Read this  North Korean football team shamed in six-hour public inquiry over World Cup . That is how communism works. It doesn’t matter that you are only a human being and there may be someone out there better than you…

But you see, most important is it to notice, that in both cases the politicians will claim, that they did the right thing – (bailed the banks or gave someone death penalty for losing bond trading).

They will always claim that they are doing it in the best interest for the nation as a whole…LOL

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More on this topic (What's this?)
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Hong Kong Hedge Funds’ Assets Record
Read more on Investing in China at Wikinvest

Homelessness Up 50% In New York City

By: admin
Published: August 30th, 2010

If you think you’ve been seeing more people sleep on city streets, statistics back up the perception. The homeless population living on New York City streets has gone up 50 percent in the past year, according to city statistics reported by the blog.

The New York City Department of Homeless Services conducts a yearly survey of the streets of the city to count the number of homeless who are not in shelters. The HOPE survey was conducted in January 2010.

The number of homeless in the borough of Manhattan was up 47 percent in the past year, according to the count. The 2010 count had 1,145 people living in the streets. That is up 368 from 2009.

Brooklyn had the biggest increase of any borough. It saw a homeless increase of more than 100 percent in 2010.

read the rest here

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Daily Readings 08-30-2010

By: admin
Published: August 30th, 2010

Notice that the following links ARE NOT from 2008, even though they sound as 2008 headlines!

Analysis: The uncomfortable mathematics of monetary policy – So just how much bond buying would the U.S. central bank have to do to get reticent consumers spending again? The figures bandied about are eye-popping. When the Fed first embarked on its policy of asset purchases, known as quantitative easing, Goldman Sachs economists estimated Fed credit to the banking system might have to expand to as much as $4 trillion to $5 trillion in order to grapple with the scope of the financial crisis.

UK – No Tax Cuts Until 2015, Says Treasury Chief - I think the tax burden is necessary as a significant contribution to getting the country’s finances in order. WHERE DID THE MONEY GO?

BOJ likely to meet on Monday to ease policyThe Bank of Japan is likely to hold an emergency meeting on Monday to ease monetary policy after Governor Masaaki Shirakawa returned to Tokyo from a trip to the United States earlier than expected.

Interest rate rises not enough to stop a crash, says Bank of England chiefIn a startling departure from the orthodox view, deputy BoE governor Charles Bean says raising rates is not enough to rein in economic recklessness

Central banks may face further tasks, says BoE’s BeanCentral banks may have to provide more economic support amid a fragile global recovery, the deputy governor of the Bank of England has warned.

The New American Corporate State - A troika of big government, big business and big labor is attempting to run the country to its own advantage.

Waiting for Mr. Obama - If President Obama has a big economic initiative up his sleeve, as he hinted recently, now would be a good time to let the rest of us in on it.

Bankers Told Recovery May Be Slow – The American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and the economic turmoil that followed, according to an authority on the history of financial crises.

Bewitched, Bothered, Bewildered, Broke – Four words to describe the economy.

The great Obama-Axelrod-etc. mysteryHow could a bunch of people who ran such a brilliant campaign be doing such a lousy job at the politics of governing?

Puncturing the Left’s myths about the public pension crisisOne of the often-heard claims by those defenders is that public pensions really aren’t that generous, especially when compared to those of supposed corporate “fat cats.” Here’s how Cal Watchdog’s Steven Greenhut addresses this claim regarding California’s system, which is perhaps the nation’s sickest…

Bad statistics for summer employment for youth – The share of young people aged 16 to 24 who were employed this summer fell to 48.9 percent — the lowest rate on record since 1948.

Rich Are More Sensitive to Tax Increases Today, Zandi says – Some of the most well-reasoned and factual arguments about the Obama tax increases have come from Mark Zandi, chief economist with Moody’s Analytics.

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Random Thoughts 08-30-2010

By: admin
Published: August 29th, 2010

About the billionaires  giving away half their fortune – Laughable, after the expiration of the Bush tax cuts and Estate tax law next year…. these same people any way will kiss half of their money goodbye…. (wiki -For amounts over $3,000,000, the tentative tax is $1,290,800 plus 55% of the excess over $3,000,000.)

About the people who write the laws – Have you thought, who the hell writes the laws and the bills of our country? I do not think it is the people we have voted in office. They always seem too busy going to cocktails, press conferences, meetings and fly on our dime to foreign countries to have our democracy expanded all over the world…For sure they do not have the time to write those 3000 page laws

About the company making the signs stating that certain project are done with stimulus money given by Barack Obama – Why they cost $10 000 per sign? You know a Toyota Yaris is about $10 000 – and it has an engine and seats and computer and moving parts….how the hell is a piece of metal sheet coated with light reflective paint cost as much as a brand new car?

About these politicians that are spending millions to get reelected – The other day I read that McCain had spend $20 million to get reelected.  If McCain is elected  he will actually get a salary of  about $200 000. But lets assume that  he will  receives $1 million as a salary per year –  it is going to take him 20 years to serve you – the little people just to break even.  But it seems money is not the main driver for people, who want to go to DC and “represent” you. The  POWER over you is…

About that comparison to Japan – Our economy is 75 percent consumer based.  We do not have manufacturing , we do not make anything…. We even do not have the work ethics and the cultural discipline of Japan. We will end up in a position that will be way worst than Japan’s after their bubble burst

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Cartoons 08-29-2010

By: admin
Published: August 29th, 2010

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Daily Readings 08-27-2010

By: admin
Published: August 27th, 2010

Savers Pay U.S. Banks to Keep Cash as Rates Dip, Fees MultiplyIt’s getting tougher for U.S. savers to find a bank where they won’t end up paying to keep their money safe. An increasing number of savers are seeing their deposit earnings eaten up by charges.

Fed in Emergency Bid to Put Bailout Ruling on HoldThe Federal Reserve asked a U.S. appeals court to delay implementing a ruling that would force the central bank to disclose details of its emergency lending programs to banks during the financial crisis.

‘Jingle Mail': Developers Are Giving Up On Properties - Like homeowners walking away from mortgaged houses that plummeted in value, some of the largest commercial-property owners are defaulting on debts and surrendering buildings worth less than their loans.

If You Like Your Health Care Plan, You Can Start Beating Your Head Against the Wall Now – Welcome to ObamaCare

FACT CHECK: Stimulus assessments overly optimisticThe Obama administration claimed this week that $100 billion invested in innovative technologies under the economic stimulus law is “transforming the American economy” by putting the nation on track for technological breakthroughs in health care, energy and transportation.But an examination of details in the 50-page report unveiled Tuesday by Vice President Joe Biden reveals something a bit different: a collection of rosy projections that ignore many of the challenges, pitfalls and economic realities in all those areas…

Bernanke: Fed will take action if economy falters – Federal Reserve Chairman Ben Bernanke said Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.

Weak GDP raises stakes for Obama, Fed – Growth figures are expected to show the economy is almost at a standstill, but the government is running out of options to rebuild momentum.

El-Erian Says `Alarming’ Data Show U.S. Economy SlowingUnemployment is high, consumer credit is shrinking and small companies are having trouble obtaining bank lines of credit, wrote El-Erian, who is also co-chief investment officer at Pimco, which runs the world’s largest bond fund. Increased government spending and additional debt purchases from the Federal Reserve are unlikely to spur a rebound, he wrote.

Chances of Double Dip Now Over 40%: RoubiniThe chances of a double-dip recession are now more than 40 percent and policymakers have options to stimulate the economy

The Most Fiscally Irresponsible Government in U.S. History - Current federal budget trends are capable of destroying this country

Recession may have pushed US birth rate to new low – The U.S. birth rate has dropped for the second year in a row, and experts think the wrenching recession led many people to put off having children. The 2009 birth rate also set a record: lowest in a century.

Thousands seeking mortgage help line up at Palm Beach County Convention Center -Thousands of people are lined up this morning outside the Palm Beach County Convention Center – some arriving by the busload, hoping the Neighborhood Assistance Corp. of America will help them save their homes

Banks back switch to renminbi for tradeA number of the world’s biggest banks have launched international roadshows promoting the use of the renminbi to corporate customers instead of the dollar for trade deals with China.

Analyst: Citigroup Is Cooking the Books – An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick

Outsourced Call Centers Return, To U.S. HomesHigh inflation and double-digit annual raises in some sectors are pushing up the cost of labor in India. At the same time wages in the U.S. are falling and companies are rethinking the trade-offs associated with outsourcing.

Joblessness in America – America’s jobs woes cannot be cured just by waiting for economic recovery

Public Pensions and Our Fiscal Future

John McCain’s Attack On LibertyAnyone paying attention knows that John McCain has been a Big-Government Globalist Neocon (BGGN) for virtually his entire senatorial career.

How accurate were CBO projections of spending and revenue for the 2000s? – Since the CBO makes 10 year projections, I would like to see how much more spending over what was projected in 2000 happened, and how much less revenue under what was projected in 2000 happened.

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