Archive of Economic News Archives | Page 20 of 33 | Truth is Treason

IMF Fears ’Explosion of Social Unrest’ from World Jobs Crisis

Posted on Sep 14, 2010 in Economic News

Source: London Telegraph

America and Europe face the worst jobs crisis since the 1930s and risk “an explosion of social unrest” unless they tread carefully, the International Monetary Fund has warned.

“The labour market is in dire straits. The Great Recession has left behind a waste land of unemployment,” said Dominique Strauss-Kahn, the IMF’s chief, at an Oslo jobs summit with the International Labour Federation (ILO).

He said a double-dip recession remains unlikely but stressed that the world has not yet escaped a deeper social crisis. He called it a grave error to think the West was safe again after teetering so close to the abyss last year. “We are not safe,” he said.

A joint IMF-ILO report said 30m jobs had been lost since the crisis, three quarters in richer economies. Global unemployment has reached 210m. “The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies,” it said.

Full article here...

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The Impact of Fiat Money as the World’s Reserve Currency Thumbnail

The Impact of Fiat Money as the World’s Reserve Currency

Posted on Sep 07, 2010 in Economic News, Featured Articles

Source: Activist Post

By David Redick

The creation of fiat official government money has had a profound effect in history and on our nation and the world today. “Fiat” means it is worth whatever the government says it is (its face value), although the material of which it is made may have more or less intrinsic market value.  Examples would include both valuable silver dollars and worthless paper, each declared to be worth $1; and today’s American Eagle bullion coin with a face value of $50 for one ounce of gold. 

Normally, when a country creates too much fake money, sellers avoid it for payment, or stop buying its bonds due to its falling value, and the party is soon over. However, the U.S. is in a unique position never seen in the history of the world. Our fiat paper money is the primary de facto world’s “reserve currency” (anyone will accept it for payment and keep it as cash, or as a dollar-denominated asset; banks keep it as their reserves, like gold). We can create new money out of thin-air, and sellers of goods and services worldwide will accept it.  ...

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Summary Of Global Events In The Week Ahead

Posted on Sep 06, 2010 in Economic News

Source: Zero Hedge

Summer is over, and now the real scramble for performance begins with just 3 weeks left in the quarter. Here is a look at the key economic events in the upcoming week, from around the world.

From Thomas Stolper and Mark Tan at Goldman Sachs

Week Ahead

Summer comes to a close and markets swing back into full gear again following the Labour day weekend in the US. The political temperature in Europe, latest round of Eurozone IP data and China data at the end of the week will be in focus. We also get a few interesting central bank meetings from around the world.

Post summer blues in the Eurozone? We’ll be watching closely for signs of rising political tension in the Eurozone, with the upcoming few weeks critical in gauging the political risks surrounding the pending implementation of key reforms in a number of Eurozone countries. The first milestone will be the September 7th general strikes planned in France in response to a parliamentary debate about the much needed increase of the retirement age. The potential for negative headlines and rising political uncertainty is one of the reasons why we have been cautious not to sound the all clear for the Euro just yet....

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US Bails Out Afghanistan’s Central Bank After Bank Run

Posted on Sep 02, 2010 in Economic News

Source: Lew Rockwell

There’s a bank run going on at Kabul Bank—as can happen to any fractional-reserve bank without an FDIC, and indeed a run is the only free-market way to correct such crooked institutions. So one of the largest shareholders, US puppet Hamid Karzai’s brother Mahmoud has a solution: “America should do something,” he said. Kabul Bank “has money”—sure it does Mamoud—but cannot “withstand a stampede by panicked depositors,” as Huffpo puts it in banksterspeak. Maybe the Taliban is telling the truth about such crooked regime banks. That would be terrorism indeed.

UPDATE

It appears that the US Bankocracy will bail out its criminal kid in Afghanistan. Yet another war crime.

(President Karzai’s other brother, Amhed, is one of the largest warlords in the country having control over the southern province’s opium production and strategic transport routes used by private contractors.)

Source: Citizens for Legitimate Govt.

As depositors thronged branches of Afghanistan’s biggest bank, Mahmoud Karzai, the brother of the Afghan president and a major shareholder in beleaguered Kabul Bank called on Thursday for intervention by the United States to head off a financial meltdown.

...

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Hyperinflation, Part II: What It Will Look Like

Posted on Aug 31, 2010 in Economic News, Featured Articles

Source: Zero Hedge

by Gonzalo Lira

I usually don’t do follow-up pieces to any of my posts. But my recent longish piece, describing how hyperinflation might happen in the United States, clearly struck a nerve.

It was a long, boring, snowy piece of macro-economic policy speculation, discussing Treasury yields, Federal Reserve Board monetary reaction, and the difference between inflation and hyperinflation—but considering the traffic it generated, I might as well been discussing relative breast size in the porn industry. With pictures.

Essentially, I argued that Treasury bonds are the New and Improved Toxic Assets. I argued that, if there was a run on Treasuries, the Federal Reserve—in its anti-deflationary zeal, and its efforts to prop up bond market prices—would over-react, and set off a run on commodities. This, I argued, would trigger hyperinflation.
 
The disproportionate attention my post garnered is indicative of people’s current fears. As I’ve said before, people aren’t blind or stupid, even if they often act that way. People are worried—they’re worried about the current state of affairs: Massive quantitative easing, toxic assets replaced by the full faith and credit of the U.S....

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10 Practical Steps That You Can Take To Insulate Yourself From The Coming Economic Collapse

Posted on Aug 26, 2010 in Economic News, Emergency Preparedness & Survival

Source: The Economic Collapse

Most Americans are still operating under the delusion that this “recession” will end and that the “good times” will return soon, but a growing minority of Americans are starting to realize that things are fundamentally changing and that they better start preparing for what is ahead. These “preppers” come from all over the political spectrum and from every age group.  More than at any other time in modern history, the American people lack faith in the U.S. economic system.  In dozens of previous columns, I have detailed the horrific economic problems that we are now facing in excruciating detail.  Many readers have started to complain that all I do is “scare” people and that I don’t provide any practical solutions.  Well, not everyone can move to Montana and start a llama farm, but hopefully this article will give people some practical steps that they can take to insulate themselves (at least to an extent) from the coming economic collapse.

But before I get into what people need to do, let’s take a minute to understand just how bad things are getting out there. ...

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15 Signs the Housing Market is Headed for Complete and Total Collapse

Posted on Aug 25, 2010 in Economic News

Source: Business Insider

 

The U.S. housing market is dying.  You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.

Click here to see the signs of a collapse >

Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed.  Mortgage defaults continue to set new records.  Foreclosures continue to set new records.  Home repossessions by banks continue to set new records.  The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels.

For decades, owning a home has been touted as the very heart of “the American Dream”, but today that dream is out of reach for an increasing number of Americans.  Why?  It is because there are not nearly enough jobs for everyone....

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The Conspiracy of Economics

Posted on Aug 24, 2010 in Economic News

Source: Personal Liberty Digest via Truth Offering

The Conspiracy of Economics

Ever wonder why year-after-year, decade-after-decade, politicians and economists alike are always “surprised” by the effects of their policies? When they create some new policy, we’re assured it will take care of whatever problem ails us…yet a few years or more down the road, we wind up at an even worse place than where we started!

It’s as if they have no idea what they’re doing!

Or, they know exactly what they’re doing:

“If they are constantly surprised by the results of their policies, could it be that they don’t really know what they’re doing? Or is it that they know and are lying while they line their pockets and the pockets of those who pull their strings?”
Bob Livingston

The second guess sounds right to me. These are, after all, some of the brightest minds in the world! Ben Bernanke, for example, is supposedly a genius. He was acknowledged to be a child prodigy during his grade school years; he scored a near-perfect 1590 out of 1600 on his SATs; he went to Harvard, earning his BA in Economics in 1975, only to earn his PhD from MIT four short years later; Dr....

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How Hyperinflation Will Happen

Posted on Aug 23, 2010 in Economic News, Federal Reserve & Bankers

Source: Gonzalo Lira

How Hyperinflation Will Happen

Right now, we are in the middle of deflation. The Global Depression we are experiencing has squeezed both aggregate demand levels and aggregate asset prices as never before. Since the credit crunch of September 2008, the U.S. and world economies have been slowly circling the deflationary drain.

To counter this, the U.S. government has been running massive deficits, as it seeks to prop up aggregate demand levels by way of fiscal “stimulus” spending—the classic Keynesian move, the same old prescription since donkey’s ears.

But the stimulus, apart from being slow and inefficient, has simply not been enough to offset the fall in consumer spending.

For its part, the Federal Reserve has been busy propping up all assets—including Treasuries—by way of “quantitative easing”.

The Fed is terrified of the U.S. economy falling into a deflationary death-spiral: Lack of liquidity, leading to lower prices, leading to unemployment, leading to lower consumption, leading to still lower prices, the entire economy grinding down to a halt. So the Fed has bought up assets of all kinds, in order to inject liquidity into the system, and bouy asset price levels so as to prevent this deflationary deep-freeze—and will continue to do so....

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Hindenburg Omen Confirmation #1

Posted on Aug 19, 2010 in Economic News

Source: Zero Hedge

Today we got our first Hindenburg Omen confirmation. The number of new highs was 136, and new lows was at 69 (per the traditional WSJ source). Granted this particular criteria set was a little weak as the 69 is precisely on the borderline for confirmation (the 2.2%), and the new highs number was not more than double the new lows (although it was close). Less gating were the McClellan oscillator which was negative at -83.6, and the 10 week MVA, which rose, which were the two remaining conditions. The first omen was spotted on August 12 – a week later the H.O has been confirmed. The more confirmations, the scarier it gets from a technical perspective, not to mention the conversion into a self-fulfilling prophecy (like every other technical indicator)....

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The Purpose Behind Engineered Economic Collapse

Posted on Aug 19, 2010 in Economic News, Featured Articles

Source: Giordano Bruno

Neithercorp Press

The Purpose Behind Engineered Economic Collapse

“From now on, depressions will be scientifically created.” — Congressman Charles A. Lindbergh Sr. , 1913

Everyone loves money. Even people like myself who abhor the abuse of money and commerce, who understand the fraudulent nature of the system we live in, still work hard and save so that we might attain a sense of stability within that system. Many people see money as a focal point to their existence. But is it really money that they are after, or is it something else entirely? In truth, money represents ‘security’ in the minds of the masses. Money affords us the ability to survive, and the more of it we have, the safer we all feel. Because we subconsciously associate the extension of our very life with the variable health of the economic structure in which we live, we tend to become unwitting devotees to its continued existence, even if it is corrupt and condemned to failure. We gullibly deny the system or the currency that supports it is doomed to the contrary of all evidence because, even though it has beaten us bloody, we have never known anything else....

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China Slashes U.S. Govt Bond Holdings By The Largest Amount Ever

Posted on Aug 18, 2010 in Economic News

Source: Business Insider

China began reducing its holdings of U.S. government bonds again in June, and in fact cut just its holdings by the largest 1-month amount ever.

Bloomberg:

The nation’s holdings of long-term Treasuries fell in June for the first time in 15 months, dropping by $21.2 billion to $839.7 billion, a U.S. government report showed yesterday. Two- year yields headed for a fifth monthly decline in August, falling today to a record 0.48 percent.

Two-year rates will rise to 0.85 percent by year-end as the U.S. economy rebounds in 2010 from a contraction in 2009, according to Bloomberg surveys of financial companies. Reports today will show improvement in housing and manufacturing, signs of stability even as growth is less than expected, analysts said.

This happened as U.S. treasury yields declined to ever historically-lower levels during June, but selling in June wasn’t a good move in retrospect. That’s because U.S. yields fell even further in July and early August....

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UAE Imports 5 Tons of Fake Gold, Investors Lose Millions Thumbnail

UAE Imports 5 Tons of Fake Gold, Investors Lose Millions

Posted on Aug 16, 2010 in Economic News

Source: Emirates 24/7

Several tons of gold imported into the UAE by traders and investors turned out to be fake on closer inspection, resulting in millions of dirhams in losses and high levels of stress to the victims.

Speaking to Emirates 24|7, Mohamad Shakarchi,, Managing Director of Emirates Gold, said: “A lot of people in the UAE who tried to import gold at lower prices or through dubious overseas companies have been cheated.

We have inspected many consignments from African countries, especially Ghana, and found that there is not an ounce of gold in them.

For importing pure dust or other metals with yellow colour, these traders have paid several million dirhams.”

Dubai Customs sources confirmed the incidence of fake gold imports, but did not reply to a questionnaire sent by Emirates 24|7 ten days ago.

“The concerned official is on leave,” said a spokesman.

Emirates Gold has stopped examining gold imported from Africa. “We send specialists to examine a gold consignment only if it is routed through a local company.

We don’t have time to waste because most of these so called gold imports are fake.

...

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Economy in for a Long Dark Period – Here’s How to Survive Thumbnail

Economy in for a Long Dark Period – Here’s How to Survive

Posted on Aug 11, 2010 in Economic News

Source: Safe Haven

Economy in for a Long Dark Period – Here’s How to Survive

The success of the multi-year machinations of the U.S. Government and the Federal Reserve’s attempts to manage the fiscal crisis can best be summarized in a single word – and that word is ephemeral – yes, ephemeral! This beautifully succinct word, ephemeral, is defined as “lasting for only a short period of time and leaving no permanent trace.” Yes, indeed, what better word is there to describe the Government’s so-called rescue plan than ephemeral – here today and gone tomorrow – and without a trace of lasting benefit!

While I tend to be short on words and to the point, as my previous articles* will attest, trying to achieve both accuracy and brevity on this subject was difficult to achieve but what follows should provide a reasonably fair and complete assessment.

Myriad of Statistical Measurements are Being Manipulated and Massaged

There have been a myriad of statistics presented by analysts attempting to quantify the short- and long-term impact of the economic and fiscal policies deployed over the last couple of years....

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The Death of the Dollar

Posted on Aug 11, 2010 in Economic News, Featured Articles, Federal Reserve & Bankers

Source: American Thinker

The Death of the Dollar: an Economic Funeral

Nothing can save our financial system in the long run.  It is doomed to collapse. This is inevitable, because our government controls and manages its very foundation — the dollar.
The federal government began its takeover of the dollar in 1913 when it established the Federal Reserve Banking System. Prior to that, the dollar was a real store of value. In the period from 1783 to 1913, there was a long period of currency stability with virtually no inflation. If you saved one dollar in 1800, your great-grandchild could buy roughly the same amount of goods with the same dollar one century later.
In 1913, five dollars could get you the following:
15 pounds of potatoes, 10 pounds of flour, 5 pounds of sugar, 5 pounds of chuck roast, 3 pounds of round steak, 3 pounds of rice, 2 pounds each of cheese and bacon, and a pound each of butter and coffee … two loaves of bread, 4 quarts of milk and a dozen eggs.
In 2010, five dollars barely gets you two pounds of cut chicken meat....

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