Wednesday, June 22, 2011

Nervous Europeans Turning to Gold

Typical of countries where mismanagement becomes terminal for the economic system or currency, the people are turning once again to the ancient relic.
Greek savers rush for gold | Gold Anti-Trust Action Committee: www.gata.org/node/10028
http://chumly.com/n/9dd657

Tuesday, June 21, 2011

Dollar Being Sacrificed for Foreign Banks?

Consider the following quote from the article: "In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!"

Read more: www.zerohedge.com/article/exclusive-feds-600-billi...kkP1X

Where Did All of the QE2 Money Go?: www.businessinsider.com/where-did-all-of-the-qe2-m...011-6
http://chumly.com/n/9d78a7

Russia Reducing Treasury Holdings

For our economy to hold up, for our dollar to maintain trend (devalue slowly), foreign countries must continue to buy our debt. The opposite is happening as we approach the end of QE II, during which we financed the vast majority of our borrowing with the digital printing press. Even American households are reducing their exposure to our government debt. The buyer of last resort (the Fed) seems to be the only buyer still interested.
After Dumping 30% Of Its Treasury Holdings In Half A Year, Russia Warns It Will Continue Selling US Debt | zero hedge: www.zerohedge.com/article/after-dumping-30-its-tre...us-de
http://chumly.com/n/9d785e

China's Monopoly Over Rare Earths

Rare Earth prices have exploded thanks to China's restrictions on export. Since they are used in high tech defense applications, our military is dependent on China. Since they are used in wind turbines, hybrid cars and other high tech alternative energy applications, it is China that profits from our centrally planned energy policy as we ignore abundant and cheap domestic conventional resources and channel taxpayer dollars into the politically correct dead ends.
Rare Earth Metal Prices Go Parabolic | zero hedge: www.zerohedge.com/article/rare-earth-metal-prices-...bolic
http://chumly.com/n/9d7851

Friday, June 17, 2011

Euro's Trouble is Our Trouble

Banks the world over are interconnected through investments and derivatives. As the whole mess threatens to come apart don't expect the guys in the financial sector who take down million dollar plus salaries to quietly accept it. The US government will once again try to collectivize the punishment for the sins of the financially foolish as noted in this last paragraph: "One thing that may help money-market funds weather the Greece storm better than the Lehman hurricane is that they now have an implicit US government backing." If you aren't prepared for a financial tsunami, it is time to consider preparing. The water may have drawn back away from the shore since 2008, but it looks like there is something big on the horizon.
Why Your Money-Market Fund Could Be Hit by Greek Default - CNBC: www.cnbc.com/id/43425080
http://chumly.com/n/9c20b4

Euro in Delirium

Who really gets bailed in these deals if they go through? And who pays? Socialism has matured into the social chaos of a spoiled, dependent population demanding more from their bankrupt government. Germany is realizing it pays for much of this. France, Belgium and Spain all benefit, and the rest of the PIIGS get burned as well if Greece bursts into flames. While the Euro could be on its last legs, the dollar is showing no strength, so it must not be far behind. It looks like all fiat currencies will suffer together, just as the PIIGS do, if the Euro goes down. Think about it, if the dollar or the Euro go down, what currency will the common man trust? Who in their right mind would trust Bernanke or Obama?
Greek crisis exposes growing rift between France and Germany - Telegraph: www.telegraph.co.uk/finance/economics/gilts/857810....html
http://chumly.com/n/9c1bf6

Wednesday, June 15, 2011

Billions Missing in Iraq

Just another case in point showing how government aid and charity seldom work, as it gets stolen, mismanaged, diverted to unauthorized purposed or creates dependency instead of any real lasting benefit.
Iraq: Missing Iraq money may have been stolen, auditors say - www.latimes.com: www.latimes.com/news/nationworld/world/la-fg-missi...story
http://chumly.com/n/9b10dc

Tuesday, June 14, 2011

Greece Displays our Future

Greece is where all addicted borrowers end up--helplessly looking for a handout. And Germany is tired of bailing it out, so interest rates go up, and the Euro looks like a climber's rope, with Greece (and other PIIGS) dangling and threatening to pull the solvent European countries off the financial cliff.
Greece's credit rating cut again on higher risk of default - Telegraph: www.telegraph.co.uk/finance/economics/gilts/857378....html
http://chumly.com/n/9aa9c6

World's Leading Bond Investor Slams Dollar/Debt

Bill Gross commented "We've always wondered who will buy Treasurys" after the Federal Reserve purchases the last of its $600 billion to end the second leg of its quantitative easing program later this month," Indeed, the end of this month could prove interesting as QE II ends in an economy desperately dependent on intervention.
US Is in Even Worse Shape Financially Than Greece: Gross - CNBC: www.cnbc.com/id/43378973
http://chumly.com/n/9aa948

Saturday, June 11, 2011

Millions in Homes but not Paying Mortgages

Foreclosure limbo: Staying without paying. - Jun. 9, 2011: money.cnn.com/2011/06/09/real_estate/foreclosure_s...=Lead
http://chumly.com/n/995436

We Are Our Own Biggest Lender

How can China's credit rating agency claim that we are already in default? Why, we can lend unlimited dollars to ourselves in order to pay our debts. Seriously, we are in technical default on our debt with the QE programs at the Fed already. The end of this month will be interesting.
Fed passes China to become largest U.S. creditor - The Tell - MarketWatch: blogs.marketwatch.com/thetell/2011/06/09/fed-passe...ditor
http://chumly.com/n/9953bb

Friday, June 10, 2011

Economist Alasdair Macleaod on Fed Policy

He warns: "The scene is set for both a lower dollar and rising bond yields. The distortions have been wound up so much that a return to normality will be a violent, disorderly event." Big spender in both parties have brought us to this point of unavoidable hardship. I pray that when the dust settles they are not still in charge.
FinanceAndEconomics: www.financeandeconomics.org/Articles archive/2011.06.09 Weak money.htm
http://chumly.com/n/98f53b

US Govt. Floods Mexico with Guns

Remember the govt. and press blaming gun shows for weapons showing up in Mexico? Read this article on the real culprit. It was just typical leftist projection of their own policies and actions on others.
Justice Officials in 'Panic Mode' as Hearing Nears on Failed Anti-Gun Trafficking Program - www.foxnews.com: www.foxnews.com/politics/2011/06/09/justice-offici...depth
http://chumly.com/n/98f53a

Bill Gross Warns About Treasuries

When the world's most reputable bond investor speaks, we should listen. Remember that our debt is the dollar and the dollar is our debt. Bill is warning that our currency is going to weaken even more dramatically than it has.
Pimco's Bill Gross says get out of Treasuries - Jun. 8, 2011: money.cnn.com/2011/06/08/markets/bill_gross_pimco_...HP_LN
http://chumly.com/n/98f539

Thursday, June 9, 2011

Post from greshambouma at CHUMLY

Americans Expect Depression
Americans Expect Depression?:: CNN got those poll results in spite of the following reminder: "...during the Depression in the 1930s, roughly one in four workers were unemployed, banks failed, and millions of Americans were homeless or unable to feed their families". Well, let's see, by the old rules one in five are unemployed right now, by old accounting standards the banks are insolvent right now, millions of Americans remain in homes they aren't paying the mortgage on, and the virtual bread line of food stamps is around 44 million long last time I checked. Maybe the private sector has been in a depression for a while now, and it is about to hit the public sector as well any day now.
CNN Poll: Obama approval rating drops as fears of depression rise – CNN Political Ticker - www.cnn.com Blogs: politicalticker.blogs.cnn.com/2011/06/08/cnn-poll-...-rise
http://chumly.com/n/98dfcc

Oil Price Manipulators Squabble

Ignore the government propaganda on inflation, and just watch to price of oil to estimate real price inflation and the weakening of the US dollar.
Oil price jumps as Opec holds production quotas - Telegraph: www.telegraph.co.uk/finance/newsbysector/energy/oi....html
http://chumly.com/n/988cc2

US Debt get Downgrade

The debt ceiling is not the issue concerning the world, decades of irresponsible spending and a refusal to change our ways are what make us look PIIG-ish.
Jesse's Café Américain: European Credit Agency Downgrades US Credit Rating from AAA to AA: jessescrossroadscafe.blogspot.com/2011/06/us-credi....html
http://chumly.com/n/988cb2

Wednesday, June 8, 2011

Syria Becoming Less Stable

Possibly America's biggest national security blunder is being entirely dependent on foreign oil, which means dependent on the Middle East, an area which could become a smoking cauldron any day now. It is time for the states to manage America's energy resources, so the Federal govt. can no longer lock them up.
This Syrian tinderbox could set fire to the region | Simon Tisdall | Comment is free | www.guardian.co.uk: www.guardian.co.uk/commentisfree/2011/jun/07/syria...egime
http://chumly.com/n/982cfa

Government Employment is the Job Market

Government spending is the economy, and so when spending shrinks, our real economic trouble starts. Do we have the cultural fortitude to get back to a sustainable footing?
State, local governments set to see record job cuts, layoffs - Jun. 5, 2011: money.cnn.com/2011/06/05/news/economy/state_local_...x.htm
http://chumly.com/n/982bfa

US Today Does the Math on Federal Debt

"Corporations would be required to count these new liabilities when they are taken on — and report a big loss to shareholders. Unlike businesses, however, Congress postpones recording spending commitments until it writes a check."
U.S. funding for future promises lags by trillions - www.usatoday.com: www.usatoday.com/news/washington/2011-06-06-us-owe...lskip
http://chumly.com/n/982ba6

The Brits Mull Over Our Cultural and Financial Decline

Couldn't agree with the last lines more: "Above all, America must rediscover the qualities that originally made it great. That will not be easy."
Decline and fall of the American empire | Business | The Guardian: www.guardian.co.uk/business/2011/jun/06/us-economy...enges
http://chumly.com/n/982a23

Tuesday, June 7, 2011

Euro Still Mired in Greece

When economies become dominated by government spending, as in Greece and US, they require constant transfusion from the outside just to stay alive. As sick as the Euro looks, the dollar is right there with it. The dollar index is close to all time lows, and the dollar index does little more than compare the dollar to the Euro. Think about that.
A Fatally Flawed Recovery Plan: Greece Back on the Brink - SPIEGEL ONLINE - News - International: www.spiegel.de/international/europe/0,1518,766809,....html
http://chumly.com/n/97c0a6

Monday, June 6, 2011

Peter Schiff, Pointing out the Obvious

Peter warns that we are near the blow off phase in US debt as the massive stimulus we have expended over the last year barely keeps the economy treading water, and economic indicators turn decidedly negative. It looks like America can no longer reap the world's wealth by simply issuing paper for them to use as currency. If we make it through the currency crisis brought on by our central planners, we are going to have to produce once more and get used to earning what we consume .
My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chumly.com/n/97aff3

Sunday, June 5, 2011

Bernanke Has Your Back

Why worry about the government taxing your retirement account? They have been doing so for years through their QE programs in a massive way. Hell, they are into all your bank accounts, insurance contracts and any other financial assets you have without having to move a piece of paper as they dilute the value of the money your assets are denominated in.
http://chumly.com/n/97350c

Greedy Socialists

Liberals insist the greed is a problem for capitalism. And I agree, greed is a fundamental problem for all of humanity, and therefor for capitalism. But if greed is a problem for capitalism, it is a much larger problem for socialism, or any form of government, call it what you will, that centralizes power. Free market capitalism is actually the best economic system at disciplining greed because the customer will supply that discipline if large businesses are not protected by powerful political allies.
http://chumly.com/n/97346c

Saturday, June 4, 2011

On Corporate Welfare

The average liberal believes that big corporations run everything, and they turn to big government as the solution. What liberals fail to realize it is only possible for large corporations to do so in America because we have abandoned the idea of limited government. If DC really stuck to the specific enumerated powers delegated to it constitutionally, all the lobbyists would be out of a job there. And if the federal and state governments did not erect regulatory barriers to entry into business, promoted by the big industrial players, the big boys would go through capitalisms life cycle and expire, while small, efficient, agile, competitive businesses would take their place, creating jobs, profits (gasp), and societal wealth. Speaking of profits, I admit, some are evil. Profits that are government created, protected and subsidized, like GE's are evil. They are ongoing taxpayer sponsored bailouts to the politically powerful, large, well connected Corporations.
http://chumly.com/n/96c535

Paul Questions Republican Fiscal Posturing

Ron is correct. Both parties have postured for years on the debt, and as long as it is always next year, or say twenty years from now that we will have a balanced budget nothing has really changed, and we are being played the fool once again. All the same games are still being played by the national politicians. Promising fiscal responsibility in the future, calling "cuts" things that don't reduce actual spending, allowing the Federal Reserve and its banksters to systematically despoil the dollar...
Paul dismisses speaker's debt cut demand | Gold Anti-Trust Action Committee: www.gata.org/node/9981
http://chumly.com/n/96c518

Thursday, June 2, 2011

Giant Triangle of Worldwide Debt Balancing on its Point

Check out the world debt clock.
World debt comparison: The global debt clock | The Economist: www.economist.com/content/global_debt_clock
http://chumly.com/n/9603f0

Greece Still on the Edge

Moody's has done its job on Greece, but when will it honestly asses our ability to repay what we owe? Truth is, all the sovereign debt in the West deserves downgrade, but Moody's only dares with Greece. Socialism has matured into collective bankruptcy in both Europe and North America. Even well meaning proposals to change our ways, like the Ryan Plan, sound like an alcoholic promising to cut back next year and quit completely twenty years from now.
Greek Default Risk Raised by Moody’s - Bloomberg: www.bloomberg.com/news/2011-06-01/greece-s-second-....html
http://chumly.com/n/95e1eb

"Recovery" Hits Reality

Any recovery built on loose fiscal policy ultimately has to confront the barrier of rising prices caused by that same loose fiscal policy. When recovery does not equal more productivity, you have farce. Due to deceptive measures of economic health, like the GDP report, it appears to work in the short term but in reality destroys economic health in the long run.
ISM manufacturing gauge tumbles in May Economic Report - MarketWatch: www.marketwatch.com/story/ism-manufacturing-gauge-...06-01
http://chumly.com/n/95e0db

Wednesday, June 1, 2011

Murray Pollitt Gives Financial Overview of Western Governments

Murray talks some financial common sense for those willing to consider it.
Murray Pollitt: Electronic wheelbarrows | Gold Anti-Trust Action Committee: www.gata.org/node/9971
http://chumly.com/n/95c22c

Our "Recovery" Showing it Tired, Ragged Edges

With housing in a shambles, bank balance sheets obscured by reporting changes, job growth non-existent, the government out of places to borrow, the central bank sham of currency creation ex-nihilo showing signs of not working any more, the game is soon to be up for Western capitalism-in-name-only socialistic policies. When "the recovery is government spending", the economy implodes when government spending finally has to contract, instead of chronically expanding. The foreign press isn't owned by GE, so tells it a little straighter.
US housing market in double dip as prices fall to fresh lows - Telegraph: www.telegraph.co.uk/finance/economics/8548346/US-h....html
http://chumly.com/n/95c219

Economist Michael Pento Lays it Out Plainly

If the whole "self-fulfilling prophecy" thing really worked we would be in one hell of a recovery by now. Truth is, it is time to cut the B.S. and tell the truth. Michael is obviously not on the public payroll, so does a very good job of stating it simply and bluntly in the short video.

Michael Pento: Central Bankruptcy – Why QE3 is Inevitable - Yahoo! Finance: finance.yahoo.com/blogs/daily-ticker/michael-pento...ccode
http://chumly.com/n/95c153