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Market Bloodbath – August 4th, 2011 Summed Up Thumbnail

Market Bloodbath – August 4th, 2011 Summed Up

Posted on Aug 04, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge

The guys (and chick!) over at Zero Hedge summed up the business day in a short, sweet fashion –

The Dow is down more than 500. The S&P is down 60. The VIX surges 35% to 32 the highest since June 2010. Implied correlation surges to the highest since last summer. ES volume surges to the highest since the flash crash. Europe is opening in 12 hours. Margin debt is near record high levels, and mutual funds have record low cash. Liquidations galore. Did we miss anything?

Here are a few other links from the Drudge Report if you’re bored…

DOW PLUMMETS 512…
OBAMA HAS BBQ COOKOUT…
GAINS FOR YEAR GONE…
‘CORRECTION’…
PANIC RIPS THROUGH GLOBAL MARKETS…
Intervention fails to quell nerves…
‘NOT SINCE JIMMY CARTER’…
Military money on chopping block…...

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A Look at the Past: All Fiat Currencies Collapse and Fail Thumbnail

A Look at the Past: All Fiat Currencies Collapse and Fail

Posted on Aug 02, 2011 in Economic News, Featured Articles

TruthisTreason.net – Kevin Hayden

Source: Casey Research & Big Gold by Jeff Clark

In spite of constant headlines about debts and deficits, most Americans don’t really believe the U.S. dollar will collapse. From knowledgeable investors who study the markets to those seemingly too busy to worry about such things, most dismiss the idea of the dollar actually going to zero.

History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.

BMG BullionBars recently published a poster featuring pictures of numerous currencies that have gone bust. Some got there quickly, while others took a century or more. Regardless of how long it took, though, the seductive temptations allowed under a fiat monetary system eventually caught up with these governments, and their currencies went poof!

You might suspect this happened only to third world countries. You’d be wrong. There was no discrimination as to the size or perceived stability of a nation’s economy; if the leaders abused their currency, the country paid the price.

As you scroll through the currencies below, you’ll see some long-ago casualties....

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Ron Paul Exposes the Deficit Lies: “Cuts are Illusory, Not from Current Amounts Spent But from Projected Spending Increases”

Posted on Aug 01, 2011 in Constitutional & Liberty Issues, Economic News, Featured Articles

TruthisTreason.net – Kevin Hayden

Source: Ron Paul & Zero Hedge

One might think that the recent drama over the debt ceiling involves one side wanting to increase or maintain spending with the other side wanting to drastically cut spending, but that is far from the truth.  In spite of the rhetoric being thrown around, the real debate is over how much government spending will increase. 

No plan under serious consideration cuts spending in the way you and I think about it.  Instead, the “cuts” being discussed are illusory, and are not cuts from current amounts being spent, but cuts in projected spending increases.  This is akin to a family “saving” $100,000 in expenses by deciding not to buy a Lamborghini, and instead getting a fully loaded Mercedes, when really their budget dictates that they need to stick with their perfectly serviceable Honda.  But this is the type of math Washington uses to mask the incriminating truth about their unrepentant plundering of the American people.

The truth is that frightening rhetoric about default and full faith and credit of the United States is being carelessly thrown around to ram through a bigger budget than ever, in spite of stagnant revenues. ...

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Iceland Citizens Tell International Bankers They Won’t Repay Them, Again

Posted on Aug 01, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: The Intercept

The people of Iceland have now twice voted not to repay international debts incurred by banks, and bankers, for which the whole island is being held responsible. With the present turmoil in European capitals, could this be the way forward for other economies?

The small island of Iceland has lessons for the world. It held a referendum in April to decide, more or less, whether ordinary people should pay for the folly of the bankers (and by extension, could governments control the corporate sector if they depended on it for finance). Sixty percent of the population rejected an agreement negotiated between Iceland, the Netherlands and the UK to pay back the British and Dutch governments for the money they spent to recompense savers with the failed bank Icesave. That was less resistance than the first referendum last spring, when 93% voted no.

The referendum was significant since European governments, pressured by speculators, the IMF and the European Commission, are imposing austerity policies on which their citizens have not voted. Even devotees of deregulation are worried by the degree of the western world’s servitude to unconstrained financial institutions....

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Iran Opens Oil Bourse – Harbinger of Trouble for New York and London?

Posted on Jul 27, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Oil Price by John Daly – Truth Contributor

The last three years of global recession have dealt a major blow to American capitalist ideas trumpeted throughout the world on the value of “free markets.” Wall St has been revealed as a form of casino economy, with the bankster insiders gambling with other people’s, and eventually, the government’s money in the form of bailouts. As the Republicans in Congress, scenting victory in the 2012 presidential elections, hold a gun to the Obama administration’s head and rating agencies consider downgrading U.S. government bonds in light of Washington’s possible defaulting, many ideas around the world that previously seemed implausible because of the dominance of the U.S. economy are garnering renewed interest.
 
Not surprisingly, many of these concepts originate in countries not enamored with Washington’s influence, perhaps none so more than “Axis of Evil” charter member Iran, which has seen its economy hammered by more than three decades of U.S.-led sanctions. Now Iran is working a program, that, if it succeeds, could help undermine the dollar’s preeminence as the world’s reserve currency more effectively than a Republican filibuster....

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Head of the World’s Biggest Hedge Fund Sees “Economic Collapse” Due to Money Printing, Early 2013

Posted on Jul 19, 2011 in Economic News, Featured Articles, Federal Reserve & Bankers

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge

As part of its most recent issue the New Yorker has released a must read interview with Ray Dalio – head of the world’s biggest hedge fund, Bridgewater.Dalio’s fund, which according to some may now be as large as $80 billion, continues to outperform even in this problematic environment, indicating that unlike various other managers who shall remain nameless, and whose wealth is built up almost exclusively on one trade (and that belonging to someone else in the first place), Dalio, despite rumors that he is preparing to leave his current position and is actively seeking a replacement, is still keenly able to adapt to changing macro conditions. Which is why his warning about future rounds of QE, which he sees as a certainty, should be heeded. Especially since it conforms 100% with the warnings of Zero Hedge – Dalio believes that future inevitable money printing will “lead to a collapse in currencies and bond markets.” Dalio is even kind enough to give a time frame. “I think late 2012 or early 2013 is going to be another very difficult period.” He is, to say the least, quite diplomatic....

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Gold Hits Record After Fed and White House Unleash Economic Terrorism – Hayden’s Note

Posted on Jul 14, 2011 in Economic News, Featured Articles

TruthisTreason.net – Kevin Hayden

Source: Bloomberg

Gold advanced to records in London and New York as concern about more U.S. economic stimulus and debt woes in the country and Europe boosted demand for the metal as a protection of wealth.

The dollar fell against six major currencies after Federal Reserve Chairman Ben S. Bernanke said the central bank is prepared to take additional action, including buying more government bonds (from Goldman Sachs at a higher price than if buying from the Treasury Dept!), to boost the economy. Moody’s Investors Service said the U.S. may lose the Aaa credit rating it’s held since 1917, while Fitch Ratings slashed Greece’s rating and said that a default is a “real possibility.”

Hayden’s Note:

The Dollar ALWAYS seems to fall after Bernanke opens his mouth.  But in regards to this “debt default” nonsense, I have to offer a few words.  The Treasury and White House Administration are trying to scare Americans into thinking this “default” would be bad for America, that SS checks won’t go out the day after and that Moody’s is going to downgrade our credit.  ...

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What IS Money? Fed Chairman Bernanke says, “Gold isn’t Money”

Posted on Jul 13, 2011 in Economic News, Federal Reserve & Bankers

TruthisTreason.net – Kevin Hayden

Federal Reserve Chairman Ben Bernanke faced off with economic genius Representative Ron Paul during his monetary policy report to Congress on Wednesday.  The head of the Fed was forced to respond to accusations of enriching already rich corporations while failing to help Main Street, while he was pushed on his views on gold.

“Gold isn’t money,” Bernanke said.

in part from Infowars.com

Hayden’s Note:

I beg to differ.  Gold has been a form of money – if not one of THE most popular forms – for thousands of years, along with livestock, other precious metals and durable goods.  Gold isn’t money?  Then what is money?

Princeton defines money as “the official currency issued by a government or national bank.”

However, Thomas Greco defined money as:

“Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment.”

The Google dictionary defines it as “The assets, property, and resources owned by someone or something; wealth” or “financial gain.”

Dictionary.com states the following in regards to “money” –

–noun

1....

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The Fed is Approaching the End Game… Are You Ready? Thumbnail

The Fed is Approaching the End Game… Are You Ready?

Posted on Jul 12, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Gains Pains Capital

The financial world seems to think that because Greece accepted another bailout we’ll be off to the races in the markets.

Aside from how absolutely moronic this view is (how’d the first Greek bailout work out? And it was what 12 months ago?), we have to consider the backdrop against which this particular tragic-comedy is playing out.

The consensus view from the mainstream financial media and 99% of fund managers is that liquidity and access to loose money from central banks will keep things afloat.

However, reality shows this not to be the case… at all. Consider for instance the impact of the Fed’s money pumps.

For starters, as a back of the envelope analysis, consider that in 2007 when the credit markets first jammed up, the Fed resorted to providing emergency money pumps of $30 billion or so.

By June 2008, the Fed had done this 14 times to the tune of $200+ billion. Then came the $700 billion bailout in November 2008.

So by the end of 2008, the Fed had put in nearly $1 trillion in capital to the markets....

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Geithner: “[For a Lot of People] It’s Going to Feel Very Hard, Harder than Anything They’ve Experienced in Their Lifetime Now, For a Long Time to Come” Thumbnail

Geithner: “[For a Lot of People] It’s Going to Feel Very Hard, Harder than Anything They’ve Experienced in Their Lifetime Now, For a Long Time to Come”

Posted on Jul 11, 2011 in Economic News, Federal Reserve & Bankers

TruthisTreason.net – Kevin Hayden

Source: Washington’s Blog

AP notes:

Many Americans will face hard times for a long time to come.

***

Geithner says will be some time before many people feel like the country is recovering.

Geithner tells NBC’s “Meet the Press” that it’s a very tough economy. He says that for a lot of people “it’s going to feel very hard, harder than anything they’ve experienced in their lifetime now, for a long time to come.”

Of course, Geithner is a large part of the reason that it will be so hard.

As I pointed out in May:

Geithner has been a big part of the problem.

He’s previously said that his job as head of the New York Fed wasn’t as a regulator, even though one of the Fed’s core jobs is to regulate. As Dylan Ratigan writes:

In Geithner’s own words during confirmation hearings in March: “First of all, I’ve never been a regulator…I’m not a regulator.” According to the New York fed bank’s Web site, that was your job!!Quoting from the Fed’s website: “As part of our core mission, we supervise and regulate financial institutions in the Second District.” That district of course is the epicenter for bailed out banks and billion dollar bonuses.

...

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Eric Sprott: “Paper Markets Are a Joke: Prepare for Bullion Prices to Go Supernova” Thumbnail

Eric Sprott: “Paper Markets Are a Joke: Prepare for Bullion Prices to Go Supernova”

Posted on Jul 05, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge by Chris Martenson

Eric Sprott – Paper Markets Are A Joke: Prepare for Bullion Prices to Go Supernova

“I think that the prices will continue higher. I mean the amount of money printing is unbelievable. I just think you have to take that initial stand in terms of buying it. I use the James Turk analogy: just keep dollar averaging. We have gone up eleven years in a row, this year it looks like it will be no exception; I would certainly think next year will be no exception. If we ever have QE3 announced, I think gold and silver will just go absolutely bonkers here. And so I just think you have got to step in there and own it; we’ve had these fears all the way along. You know, $400, and $500 and $700 and $800 dollar gold, everyone was afraid it was a one-time thing. I don’t think it is a one-time thing, I think it is a secular thing. It’s going to carry on for quite a while here until we find some resolution of these problems....

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The Screaming Fundamentals for Owning Gold and Silver Thumbnail

The Screaming Fundamentals for Owning Gold and Silver

Posted on Jun 30, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Lew Rockwell & Survival Blogby Chris Martenson

This report lays out an investment thesis for gold and one for silver.  Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. My timing and logic for both entering and finally exiting gold (and silver) as investments are laid out in the full report.

The punch line is this: Gold and silver are not (yet) in bubble territory, and large gains remain, especially if monetary, fiscal, and fundamental supply-and-demand trends remain in play.

Introduction

In 2001, as the painful end of the long stock bull market finally seeped into my consciousness, I began to grow quite concerned about my traditional stock and bond holdings. Other than a house with 27 years left on a 30 year mortgage, these holdings represented 100% of my investing portfolio. So I dug into the economic data to see what I could discover. What I found shocked me. It’s all in the Crash Course in both video and book form, so I won’t go into that data here....

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Iceland Citizens Tell Europe to Pound Sand, Declares Independence from International Bankers Thumbnail

Iceland Citizens Tell Europe to Pound Sand, Declares Independence from International Bankers

Posted on Jun 29, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Netright – Bill Wilson

Iceland is free.  And it will remain so, so long as her people wish to remain autonomous of the foreign domination of her would-be masters — in this case, international bankers.

On April 9, the fiercely independent people of island-nation defeated a referendum that would have bailed out the UK and the Netherlands who had covered the deposits of British and Dutch investors who had lost funds in Icesave bank in 2008.

At the time of the bank’s failure, Iceland refused to cover the losses.  But the UK and Netherlands nonetheless have demanded that Iceland repay them for the “loan” as a condition for admission into the European Union.

In response, the Icelandic people have told Europe to go pound sand. The final vote was 103,207 to 69,462, or 58.9 percent to 39.7 percent.   “Taxpayers should not be responsible for paying the debts of a private institution,” said Sigriur Andersen, a spokeswoman for the Advice group that opposed the bailout.

Hayden’s Note:

I’ll keep this addendum short: Hellz yes.  Good job, Iceland!

...

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Greece May Have to Auction Off Beaches, Casinos, Palaces and Historical Landmarks to Pay Debt Thumbnail

Greece May Have to Auction Off Beaches, Casinos, Palaces and Historical Landmarks to Pay Debt

Posted on Jun 27, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Telegraph

Islanders are preparing to join mainland industrial workers in protests against government plans to raise 50 billion euros from the sale of state assets.

Residents of Corfu, one of the largest of the Greek islands and a popular holiday destination, are furious at the idea of the state auctioning off its prime locations to the highest bidder.

“Greece may be on the verge of bankruptcy but surely it’s not a good idea to sell off the family silver,” said Spiros Avramiotis, a local olive oil producer, seated in a cafe on a cobbled square in the Venetian quarter of Kerkyra.

“We have to stand up and send a message to the politicians in Athens — Corfu is not for sale, not one inch of it. Full stop.”

Mon Repos Palace in Corfu, where a museum records the site as the birthplace of Prince Philip, the Duke of Edinburgh, 90 years ago, is one of several state-owned properties included the package. The firesale will beaches, casinos, palaces, airports and marinas auctioned off around Greece.

A suggestion by German MPs last year that Greece should sell off some of its islands or even the Acropolis to pay its debt infuriated Greeks.

...

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Prepare for a Surge of Treasury Issuance as Soon as the Debt Ceiling is Lifted Thumbnail

Prepare for a Surge of Treasury Issuance as Soon as the Debt Ceiling is Lifted

Posted on Jun 27, 2011 in Economic News, Federal Reserve & Bankers

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge

One of the side effects of the US hitting its debt ceiling in mid-May is that while the components of its total debt have been shifting, with total marketable debt slowly grinding higher, while intragovernmental holdings (i.e., government retirement pension accruals) declining, the total thing has been flat as a pancake at just $25 million below the mandated ceiling. Since May 16 (or 57 working days now), total US debt has been $14.345 billion and not a penny more. Yet the issue is that with the US expected to have a roughly $1.5 trillion budget deficit in the calendar 2011 year, the ongoing contraction in debt issuance is only temporary.

Basically when and if the debt ceiling is lifted, the Treasury will not only have to issue as much debt as before, but it will have to issue massively more in the short term to catch up to the ongoing run rate, and also in order to prefund the same retirement accounts it has been plundering for the past 6 months. So here’s the math....

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