David Stockman, former director of the Office of Management and Budget, told Tom Keene on “Bloomberg Surveillance” yesterday that the Federal Reserve is “off the deep end with this money printing, which is dramatically distorting and deforming the financial markets.”
On Glenn Hubbard, Stockman said, “He is a brilliant guy who told Bush to cut taxes in 2001, cut taxes in 2003, oh, why you are at it, go have two [...]
Jim Sinclair sent an email update to subscribers this afternoon regarding media reports that Fed Chairman Ben Bernanke will step down and retire when his current term expires in January of 2014.
Sinclair states that like former Chairman Alan Greenspan who retired immediately preceding the collapse of the housing bubble leaving Bernanke holding the bag, if Bernanke steps down a year from January, it will indicate a monetary mushroom cloud of EPIC PROPORTIONS looms [...]
Jim welcomes back John Williams, Executive Editor of Shadow Government Statistics. John states his case that the US government can’t keep its commitments and remain solvent. According to a US Treasury report, the real national debt is not $16 trillion, but more like $86 trillion on a present value basis. John also points out that this year’s US budget deficit isn’t $1.3 trillion, but $5 trillion when calculated on a GAAP basis…
Pressure in the eurozone increased again yesterday as the Spanish government began talks over a bailout, leaders struggled to prevent Greece leaving the single currency and economic data indicated a return to recession.
In a move that will renew fears of a collapse of the single currency, Spanish officials have discussed an aid package for its sovereign debts from the eurozone’s trillion euro rescue fund.
The country has already received support to [...]
by Simon Black of Sovereign Man blog,
One of the great absurdities of our modern financial system is that a nation living within its means, i.e. spending less than what it confiscates in tax revenue, is no longer the norm.
Living within your means is now considered ‘austerity’. And unfair.
Whether in the UK, Europe, or North America, many voters have become so accustomed to the government’s massive role in the economy, they can’t [...]
Let’s try a thought experiment. Imagine you walked into the bank, told them you were going to be taking pay cuts for the next few years, and then asked for a loan. You’d be laughed out of the office or else pay an interest rate so high that “usurious” wouldn’t do it justice. The logic is simple: If you’re in debt and your income is shrinking, it’s mighty hard to [...]
Plans for Greece to default, potentially leaving the euro, have been drafted in Germany as the European Union begins to face up to the fact that Greek debt is spiralling out of control – with or without a second bailout.
The German finance ministry is actively pushing for Greece to declare itself bankrupt and to agree a “haircut” on the bulk of its debts held by banks, a move that [...]
Feb. 15 (Bloomberg) — Paulson & Co., the $23 billion hedge fund whose founder John Paulson is seeking to recover from record losses last year, said Greece may default by the end of March, triggering the breakup of the euro.
Greece may need an unprecedented 90 billion euros ($117 billion) to meet funding requirements under the anticipated agreement on private sector involvement, the recapitalization of the banks and other funding needs, [...]
January 3, 2012
The former head of the Central Intelligence Agency (CIA) unit tracking terror leader Osama bin Laden, Michael Scheuer (left), endorsed Republican Rep. Ron Paul of Texas for President in 2012, days before the Iowa caucus. He argued, among other points, that the top-tier GOP hopeful is the best candidate to protect America from violent Islamic extremism.
In a column entitled “Iowa’s Choice: Dr. Paul or U.S. bankruptcy, [...]
The central banks, after saddling sovereign nations with massive red ink and threat of national bankruptcy as they manipulate then into wars and into debt, now are looking to “super-committees” to override “polarized” dissent by elected representatives as they steer both the US and EU toward a one-world central bank and a single currency.
Mario Monti, in a symposium he spoke at just a few weeks ago sponsored by the [...]
From Simon Black of Sovereign Man
Germany looks to Justin Bieber to solve the crisis
The world is now divided into essentially three categories:
(1) those nations that can effectively sidestep catastrophic meltdown;
(2) those nations that cannot avoid meltdown, but can afford to kick the can down the road
(3) those nations that must face their grim, unavoidable meltdown reality now
The United States, for better or worse, is in category 2. Politicians can [...]
I see three big differences on why the current situation doesn’t look as bad as it did in the 1930′s, but in reality it’s as bad or worse.
1. Â Soup lines. Â I think everyone is familiar with the famous black and white photos of people lined up around the block waiting in soup lines for food. Â Well, we don’t see that today but what we do [...]
Especially after the QQQQ is down 6 days in a row.
Dow will be falling like a stone …
Update ~ Green Shoots
SAN FRANCISCO (MarketWatch) — U.S. consumer bankruptcy filings rose 11% in the first nine months of this year, versus the same period in 2009, the American Bankruptcy Institute said Monday, citing data from the National Bankruptcy Research Center.
Quotes of the Day
Any people anywhere, being [...]
“German finance minister Wolfgang Schauble has pleaded with his country’s citizens to back a joint EU-IMF bail out for Greece worth up to Ã¢â€šÂ¬45bn (Ã‚Â£40bn), warning that failure to act risks a financial meltdown.
“We cannot allow the bankruptcy of a euro member state like Greece to turn into a second Lehman Brothers,” he told Der Spiegel.
“Greece’s debts are all in euros, but it isn’t clear who holds how much of [...]
1) Greek 3-Month Bill Yield Doubles on Default Concern (Update1)
“April 20 (Bloomberg) — Greece’s borrowing costs more than doubled at an auction of 1.95 billion euros ($2.6 billion) of three-month bills amid concern the nation will default unless it taps a bailout package brokered by the European Union.
Greece sold the 13-week securities today to yield 3.65 percent, compared with 1.67 percent at a sale of [...]