Compiled some stuff from earlier posts, enjoy:
Kotlikoff explains that America's "unofficial" payment obligations — like Social Security, Medicare and Medicaid benefits — jack up the debt figure substantially.
"If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap," he says. "That's our true indebtedness."
To eliminate the fiscal gap, Kotlikoff says, the U.S. would have to have tax increases and spending reductions far beyond what's being negotiated right now in Washington.
"What you have to do is either immediately and permanently raise taxes by about two-thirds, or immediately and permanently cut every dollar of spending by 40 percent forever. The [Congressional Budget Office's] numbers say we have an absolutely enormous problem facing us."
http://www.npr.org/2011/08/06/139027615/a-national-debt-of-14-trillion-try-211-trillion?ft=1&f=1001
okey wasen't that endcouraging. Over to Europe..
35 min in to this broadcast an interview with Jim Rickards. Interesting stuff e.g. about EFSF. Italy "only" needs 1 trillion Euros coming three years. And Italy will drag France its largest debtor with it. Take away: were in a depression since 2007 and now we have a recession within a depression. Reputiate all the debt and reboot.
http://www.cbc.ca/video/#/News/Business/1239849460/ID=2086121205
As we all know it was Goldman Sucks that invented and structured this EFSF appoach. So with that a country like Germany stands to risk to get deep in debt via obscure non transparent derivat mechanisms ready to blow. Who actually thought we need more of derivatives and that lack of derivatives was our problem?
Did the Europeans Just Invent a New Government Backed Derivative? When a special purpose vehicle, which was intended to increase the stability of sovereign debt, begins to receive criticism because of the complexity of its structure, you can be forgiven for wondering if it does more harm than good.
http://www.cnbc.com/id/41846746/Did_the_Europeans_Just_Invent_a_New_Government_Backed_Derivative
LONDON, Aug 8 (IFR) - With talk of the size of the European Financial Stability Facility's lending capacity being increased from its current but yet to be ratified ?440bn - numbers such as ?1trn, ?2trn, even ?4trn, have been bandied around - one thing is clear: there is likely to be a lot more paper in the market than was envisaged when the limit was ?250bn. Germany's contribution to the EFSF rises to 29% from 27% under the new proposals, while France's grows to 22% from 20.5%. These swell to 43% and 32% if Italy and Spain withdraw.
http://in.reuters.com/article/2011/08/08/efsf-bonds-idINL6E7J80KF20110808
'Euro on edge, will collapse by November if no new crisis plan'
http://www.youtube.com/watch?v=T1Qd-oohi5c&feature=player_embedded
Bottom line - EFSF, or rather Germany, most certainly is not able to manage this on its own. The $US seems to already have lost all credability and the defecit is humongeous any way you slice or dice it.
Seems this now is playing out for the SDRs. I mean a really fast quick SDR implementation. One can almost hear what the ECB and The FED are yelling - We need the $100 trillion NOW, and China seems anxious as well pushing to implement this new order. But I do believe that as an absoulte prerequisit in order to even be able to implement this new SDR structure gold needs to be "nutralised". This as every competing currency out there will jeopardise any such attemt and most certainly in its very early indricutionary phase.
China Blasts US After S&P Downgrade, Calls for New Global Reserve
http://www.ibtimes.com/articles/193532/20110806/us-debt-downgrade-after-dollar-future-china-blast-standard-poo.htm
Dollar to Be 'Discarded' by World: China Rating Agency
The editorial called for “international supervision over the issue of U.S. dollars” and the introduction of “a new, stable and secured global reserve currency.”
http://www.cnbc.com/id/44050325
Then isent it handy a very detailed SDR plan that has has been in the works for probably decades just has been completed?
The IMF Central Bank structrur in place - Check . Is there enough panic - not just yet but very soon. Okey lets go! But first lets create as much meyham as possible in order to really meak em up. Soon they'll come crawling begging on their knees for the SDR and another shot of stimuli -big time.
Here about the plan..
Jim Rickards Davos - We Need $100,000,000,000,000 of New Debt
http://www.youtube.com/watch?v=ZmDuS_IQ40g
tisdag 9 augusti 2011
Dollar to Be 'Discarded' by World: China Rating Agency
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.
However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.
The editorial called for “international supervision over the issue of U.S. dollars” and the introduction of “a new, stable and secured global reserve currency.”
http://www.cnbc.com/id/44050325
Isen't it just handy all what is needed in regards of SDRs replacing the $US as the worlds reserve currency already is at hand? Only thing remaining in order then to introduce this to the generall puplic is a real financial chrisis of epic propotions.
Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.
However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.
The editorial called for “international supervision over the issue of U.S. dollars” and the introduction of “a new, stable and secured global reserve currency.”
http://www.cnbc.com/id/44050325
Isen't it just handy all what is needed in regards of SDRs replacing the $US as the worlds reserve currency already is at hand? Only thing remaining in order then to introduce this to the generall puplic is a real financial chrisis of epic propotions.
Arab Revolution spreds to ...Israel..?
Following the electrifying presence of more than a quarter of a million protesters in Tel-Aviv, 700,000 more are tipped to join them.
Demanding social justice, lower living costs and government reform, hundreds of thousands of Israelis have poured into the capital in scenes reminiscent of the revolts in Tunisia, Egypt and Libya.
Next month, one million protesters will flood 50 cities in Israel. Next month also marks the declaration of Palestinian Statehood at the UN in New York.
We know that the Israeli government is certainly preparing for that. But are they prepared for their own people to rise up against them?
Time will tell how those events will unfold, but what matters now is why the media is failing to give the same kind of coverage to the revolts in Israel as they did to those in the Arab world earlier this year.
http://mediajackhammer.wordpress.com/2011/08/08/an-israeli-spring-a-one-million-man-march-and-the-media-is-quiet/
Demanding social justice, lower living costs and government reform, hundreds of thousands of Israelis have poured into the capital in scenes reminiscent of the revolts in Tunisia, Egypt and Libya.
Next month, one million protesters will flood 50 cities in Israel. Next month also marks the declaration of Palestinian Statehood at the UN in New York.
We know that the Israeli government is certainly preparing for that. But are they prepared for their own people to rise up against them?
Time will tell how those events will unfold, but what matters now is why the media is failing to give the same kind of coverage to the revolts in Israel as they did to those in the Arab world earlier this year.
http://mediajackhammer.wordpress.com/2011/08/08/an-israeli-spring-a-one-million-man-march-and-the-media-is-quiet/
The debt can not be repaid
35 min in to this broadcast an interview with Jim Rickards. Interesting stuff e.g. about EFSF. Italy only needs 1 trillion Euros coming three years. And Italy will drag France its largest debtor with it.
Take away: were in a depression since 2007 and now we have a recession within a depression. Reputiate all the debt and reboot.
http://www.cbc.ca/video/#/News/Business/1239849460/ID=2086121205
Take away: were in a depression since 2007 and now we have a recession within a depression. Reputiate all the debt and reboot.
http://www.cbc.ca/video/#/News/Business/1239849460/ID=2086121205
Goldman Sucks invented the EFSF
As we all know it was GS that invented and structured this appoach. The objective clearly is to get Germany deep, deep in debt via obscure non transparent derivat mechanisms ready to blow.
Did the Europeans Just Invent a New Government Backed Derivative?
When a special purpose vehicle, which was intended to increase the stability of sovereign debt, begins to receive criticism because of the complexity of its structure, you can be forgiven for wondering if it does more harm than good.
http://www.cnbc.com/id/41846746/Did_the_Europeans_Just_Invent_a_New_Government_Backed_Derivative
LONDON, Aug 8 (IFR) - With talk of the size of the European Financial Stability Facility's lending capacity being increased from its current but yet to be ratified ?440bn - numbers such as ?1trn, ?2trn, even ?4trn, have been bandied around - one thing is clear: there is likely to be a lot more paper in the market than was envisaged when the limit was ?250bn.
Germany's contribution to the EFSF rises to 29% from 27% under the new proposals, while France's grows to 22% from 20.5%. These swell to 43% and 32% if Italy and Spain withdraw.
http://in.reuters.com/article/2011/08/08/efsf-bonds-idINL6E7J80KF20110808
Did the Europeans Just Invent a New Government Backed Derivative?
When a special purpose vehicle, which was intended to increase the stability of sovereign debt, begins to receive criticism because of the complexity of its structure, you can be forgiven for wondering if it does more harm than good.
http://www.cnbc.com/id/41846746/Did_the_Europeans_Just_Invent_a_New_Government_Backed_Derivative
LONDON, Aug 8 (IFR) - With talk of the size of the European Financial Stability Facility's lending capacity being increased from its current but yet to be ratified ?440bn - numbers such as ?1trn, ?2trn, even ?4trn, have been bandied around - one thing is clear: there is likely to be a lot more paper in the market than was envisaged when the limit was ?250bn.
Germany's contribution to the EFSF rises to 29% from 27% under the new proposals, while France's grows to 22% from 20.5%. These swell to 43% and 32% if Italy and Spain withdraw.
http://in.reuters.com/article/2011/08/08/efsf-bonds-idINL6E7J80KF20110808
$1 Billion bet in July of US downgrade brings questions of insider information
In late July, a mystery investor or hedge fund made a nearly $1 Billion bet that the US would lose their AAA credit rating, and on August 5th when S&P issued its downrade to AA+, that investor now stands to make a return of 1000%, and leads to serious questions of who the mystery trader is, and did they have insider information well before hand.
In 1992, George Soros nearly destroyed the British Pound, and made a profit of $1 Billion by betting agains the currency. The British government had been propping up the Sterling for some time, and this led to a weakness that Soros was able to exploit when rejection of the Maastricht Treaty led to a massive devaulation of the Pound, and a huge profit for his bet.
That belief, or perhaps knowledge of events is very similar to the bet placed against the American credit rating just two weeks ago.
While the identity of the 'mystery investor' remains unknown, many indicators do point to George Soros as the principal benefactor. First, Soros has been tied to the Obama administration since the 2008 elections. In February of this year in fact, a Soros investment fund profited well on President Obama's new green energy policies. Secondly, right about the exact same time as the $1 Billion bet took place on the US credit rating downgrade, Soros made public the move to divest his management fund of outside investors, and quietly go private. This move allows him to make trades and investments without being required to notify the SEC under the new Dodd-Frank act passed in Congress last year.
Of course, this mystery bet could have been made by any Hedge Fund that followed Soro's course of action, and went private on their own. However, very few people have the inside contacts with the Treasury Department and Obama administration that Soros does, and the historical evidence does point strongly to this bet being one that he has done in the past.While the point here is not necessarily who made the bet on the a US downgrade, but rather, the question is how much was known by the Obama administration and Treasury Department in advance of a downgrade coming? In April of this year, an interview with Secretary Tim Geithner led him to say unequivocally that there is no chance of the US being downgraded, and assuredly, the government has close communication with the ratings agencies through the Treasury and the Fed. This downgrade did not come as a surprise to the government, only the timing of it may have been unwanted.
There is a saying when it comes to theft in America. If you steal $100, you go to jail, but if you steal $1 Billion dollars, you work on Wall Street. The SEC and American justice system has been a process that picks and chooses whom it prosecutes for insider information, and the higher up you are in the banking system, the less likely you are to be investigated, or prosecuted. Since the 2008 credit crisis, small fish such as Bernie Madoff were made public scapegoats, and brought to trial, but larger names such as Angelo Mozillo of Countrywide simply got a slap on the wrist, and a large retirement.
The timing of a massive bet of nearly $1 Billion dollars on the US losing its AAA rating just two weeks before S&P made the call on August 5th is eerily similar to what took place in 1992 on the British Pound. There is no doubt that someone had insider information that a ratings downgrade was coming, and only time will tell if the mystery investor is ever revealed who just made $10 Billion dollars off the investment.
Continue reading on Examiner http://www.examiner.com/finance-examiner-in-national/1-billion-bet-july-of-us-downgrade-brings-questions-of-insider-information#ixzz1UXZAVufW
Warren Buffet owns parts in Moodys. These rating institutes work on behalf of the Oligarchs. Soros for sure has good enough connection within these structures as does many others. Thats why crashing economies is such a very good business, justt as war is as well. Same end result - a hurting civilian population.
Soros is the guy not only responsable for the Pounds demice he also very activly interveined against the Swedish Krona some three decades ago. Same end results Sweden joined the European Union and austerity to the people.
In 1992, George Soros nearly destroyed the British Pound, and made a profit of $1 Billion by betting agains the currency. The British government had been propping up the Sterling for some time, and this led to a weakness that Soros was able to exploit when rejection of the Maastricht Treaty led to a massive devaulation of the Pound, and a huge profit for his bet.
That belief, or perhaps knowledge of events is very similar to the bet placed against the American credit rating just two weeks ago.
While the identity of the 'mystery investor' remains unknown, many indicators do point to George Soros as the principal benefactor. First, Soros has been tied to the Obama administration since the 2008 elections. In February of this year in fact, a Soros investment fund profited well on President Obama's new green energy policies. Secondly, right about the exact same time as the $1 Billion bet took place on the US credit rating downgrade, Soros made public the move to divest his management fund of outside investors, and quietly go private. This move allows him to make trades and investments without being required to notify the SEC under the new Dodd-Frank act passed in Congress last year.
Of course, this mystery bet could have been made by any Hedge Fund that followed Soro's course of action, and went private on their own. However, very few people have the inside contacts with the Treasury Department and Obama administration that Soros does, and the historical evidence does point strongly to this bet being one that he has done in the past.While the point here is not necessarily who made the bet on the a US downgrade, but rather, the question is how much was known by the Obama administration and Treasury Department in advance of a downgrade coming? In April of this year, an interview with Secretary Tim Geithner led him to say unequivocally that there is no chance of the US being downgraded, and assuredly, the government has close communication with the ratings agencies through the Treasury and the Fed. This downgrade did not come as a surprise to the government, only the timing of it may have been unwanted.
There is a saying when it comes to theft in America. If you steal $100, you go to jail, but if you steal $1 Billion dollars, you work on Wall Street. The SEC and American justice system has been a process that picks and chooses whom it prosecutes for insider information, and the higher up you are in the banking system, the less likely you are to be investigated, or prosecuted. Since the 2008 credit crisis, small fish such as Bernie Madoff were made public scapegoats, and brought to trial, but larger names such as Angelo Mozillo of Countrywide simply got a slap on the wrist, and a large retirement.
The timing of a massive bet of nearly $1 Billion dollars on the US losing its AAA rating just two weeks before S&P made the call on August 5th is eerily similar to what took place in 1992 on the British Pound. There is no doubt that someone had insider information that a ratings downgrade was coming, and only time will tell if the mystery investor is ever revealed who just made $10 Billion dollars off the investment.
Continue reading on Examiner http://www.examiner.com/finance-examiner-in-national/1-billion-bet-july-of-us-downgrade-brings-questions-of-insider-information#ixzz1UXZAVufW
Warren Buffet owns parts in Moodys. These rating institutes work on behalf of the Oligarchs. Soros for sure has good enough connection within these structures as does many others. Thats why crashing economies is such a very good business, justt as war is as well. Same end result - a hurting civilian population.
Soros is the guy not only responsable for the Pounds demice he also very activly interveined against the Swedish Krona some three decades ago. Same end results Sweden joined the European Union and austerity to the people.
Next Wave 2.0
The rating company S&P assigned AA+ scores to securities in the $2.9 trillion municipal bond market including school- construction bonds in Irving, Texas; debt backed by a federal lease in Miami; and a bond series for multifamily housing in Oceanside, California. Olayinka Fadahunsi, an S&P spokesman, said he couldn’t provide a dollar figure on the affected debt. “It’s expected, but nobody is happy about it,” Bud Byrnes, chief executive officer of Encino, California-based RH Investment Corp., said in a telephone interview
Matt Fabian, a managing director of Concord, Massachusetts- based Municipal Market Advisors, a financial research company, said in a telephone interview that he expected “hundreds and hundreds of municipal downgrades,” which may hurt investor confidence. “Treasuries may be able to shake off a real impact from the downgrade,” he said. “Munis, I’m less sure about." That's ok, while nobody has any idea what is coming, that won't stop 99.9% of those on Comcast's financial comedy channel from opining anyway.
Sure, just like the Fukushima explosion had no impact on the lift expectancy of those surrounding it back in March. Perhaps we should all check back with population in the immediate vicinity in a few years... And then do the same for debt issuers in the US.
http://www.zerohedge.com/news/sp-cuts-aaa-rating-thousands-municipal-bonds
South Korea Joins Greece In Banning Short Selling
Yesterday Greece, today Korea, tomorrow the world. The traditionally last ditch attempt by a regulator losing control of events: making short selling illegal, is starting to appear in random places, first showing up in Greece, and now in South Korea, where the capital markets commissioner just said no most shorting for 3 months.
South Korea’s Financial Services Commission will also temporarily ease daily limit on amount of shares companies can buy back. This latest short selling ban has put many on edge, and following Italy's move to ban naked short selling several weeks ago it is now expected that at least several more European countries will follow in these footsteps, further eliminating price discovery and destabilizing market confidence and more.
http://www.zerohedge.com/news/south-korea-joins-greece-banning-short-selling
Japan econmin: should think more about QE steps
Japanese economics minister Kaoru Yosano said on Tuesday that Japan should give more thought to the range of quantitative easing steps it uses, as the country struggles to deal with a strong yen.
"We need to consider whether we can give somewhat more thought to the range of quantitative easing (steps used in Japan)," he told a news conference.
He also warned that economic risks are on the rise globally, adding that the global economy could fall into an emergency situation if governments take the wrong course on policy. (Reporting by Yoko Kubota; Editing by Joseph Radford)
http://uk.reuters.com/article/2011/08/09/japan-economy-yosano-idUST9E7J100I20110809
Next wave
http://intheendwerealldebt.blogspot.com/2011/08/next-wave.html
Clearly our master all over the world indeed are very keen to give away our money for free in order tro "save the world from disaster". As a thank you very much then the taxpayes are given austerity withing just a very short while thereafter.
Thats whats now on the verge to happen in the US as well as even in Germany (if this EFSF idiocracy is allowed to continue there). The Japanece QE has resulted in several decades of decay. And yet theire politicians are eager to pump out more.. of their citicens money.
The QE game actually was invented in Japan and now its coming back home again to roost.
Matt Fabian, a managing director of Concord, Massachusetts- based Municipal Market Advisors, a financial research company, said in a telephone interview that he expected “hundreds and hundreds of municipal downgrades,” which may hurt investor confidence. “Treasuries may be able to shake off a real impact from the downgrade,” he said. “Munis, I’m less sure about." That's ok, while nobody has any idea what is coming, that won't stop 99.9% of those on Comcast's financial comedy channel from opining anyway.
Sure, just like the Fukushima explosion had no impact on the lift expectancy of those surrounding it back in March. Perhaps we should all check back with population in the immediate vicinity in a few years... And then do the same for debt issuers in the US.
http://www.zerohedge.com/news/sp-cuts-aaa-rating-thousands-municipal-bonds
South Korea Joins Greece In Banning Short Selling
Yesterday Greece, today Korea, tomorrow the world. The traditionally last ditch attempt by a regulator losing control of events: making short selling illegal, is starting to appear in random places, first showing up in Greece, and now in South Korea, where the capital markets commissioner just said no most shorting for 3 months.
South Korea’s Financial Services Commission will also temporarily ease daily limit on amount of shares companies can buy back. This latest short selling ban has put many on edge, and following Italy's move to ban naked short selling several weeks ago it is now expected that at least several more European countries will follow in these footsteps, further eliminating price discovery and destabilizing market confidence and more.
http://www.zerohedge.com/news/south-korea-joins-greece-banning-short-selling
Japan econmin: should think more about QE steps
Japanese economics minister Kaoru Yosano said on Tuesday that Japan should give more thought to the range of quantitative easing steps it uses, as the country struggles to deal with a strong yen.
"We need to consider whether we can give somewhat more thought to the range of quantitative easing (steps used in Japan)," he told a news conference.
He also warned that economic risks are on the rise globally, adding that the global economy could fall into an emergency situation if governments take the wrong course on policy. (Reporting by Yoko Kubota; Editing by Joseph Radford)
http://uk.reuters.com/article/2011/08/09/japan-economy-yosano-idUST9E7J100I20110809
Next wave
http://intheendwerealldebt.blogspot.com/2011/08/next-wave.html
Clearly our master all over the world indeed are very keen to give away our money for free in order tro "save the world from disaster". As a thank you very much then the taxpayes are given austerity withing just a very short while thereafter.
Thats whats now on the verge to happen in the US as well as even in Germany (if this EFSF idiocracy is allowed to continue there). The Japanece QE has resulted in several decades of decay. And yet theire politicians are eager to pump out more.. of their citicens money.
The QE game actually was invented in Japan and now its coming back home again to roost.
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