Archive of Economic News Archives | Page 4 of 33 | Truth is Treason

Hayden’s Headlines: City Hall Seized, NSA, 78 Sq Ft Apt, Zombie News, and Adam Kokesh

Posted on Jun 02, 2012 in Alt Energy, Tiny Homes, & Structures, Blog, Editorials, & Thoughts, Economic News, Federal Reserve & Bankers, Global & National News, Police, Military, & War, Political Issues

SEC Dropping Lehman Brothers Case: Ends Probe Without Finding Fraud

Posted on May 29, 2012 in Economic News, Federal Reserve & Bankers

Kevin Hayden –


After more than three years of investigating the largest corporate bankruptcy in U.S. history, the Securities and Exchange Commission is reportedly dropping the case against Lehman Brothers.

“The staff has concluded its investigation and determined that charges will likely not be recommended,” reads an internal SEC memo, obtained by Bloomberg.

Hayden’s Note:

Gee, go figure.  Former bankers investigating bankers.  When I was a child, we called this a merry-go-round.

If true, this is ‘a travesty of a mockery of a sham of a mockery of a travesty of two mockeries of a sham,’ to quote Woody Allen’s Bananas.

In 2010, the court appointed examiner for Lehman’s bankruptcy concluded Lehman executives used “materially misleading” accounting gimmicks in the months prior to its September 2008 bankruptcy.

Specifically, Lehman “reverse engineered the firm’s net leverage ratio for public consumption” to the tune of $50 billion, according to Valukas. This refers to the now infamous accounting practice called a Repo 105, whereby Lehman offloaded some of its most toxic assets at the end of the quarter in order to temporarily reduced the leverage it disclosed in quarterly filings....

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Carl Icahn Accumulates 7.5% Stake in Chesapeake Energy, and His Angry Letter to the CHK Board Thumbnail

Carl Icahn Accumulates 7.5% Stake in Chesapeake Energy, and His Angry Letter to the CHK Board

Posted on May 26, 2012 in Economic News, Federal Reserve & Bankers

Kevin Hayden –

Source: Zero Hedge

Recall when Zero Hedge said two weeks ago that in the age of ZIRP, corporate balance sheets simply do not matter. The reason for that conclusion was of course the endless public debates over whether Chesapeake’s massively overleveraged capital structure would lead to its demise.

Our view was that while balance sheets certainly matter in a normal market, one not dominated by central planning and endless hunger for yield, in the new ZIRP normal, none of the old school metrics of solvency, viability or even profitability matter. One person who appears to have agreed with our assessment, and put his money where his mouth is, or $775MM more specifically, is none other than legendary corporate raider Carl Icahn, who minutes ago announced that funds controlled by Icahn have raised their stake in CHK to 7.56%, making him the second biggest holder of the stock, and in a letter just sent to the CHK Board, in rather angry tones, demanded 2 board seats for his own representatives and 2 for Chesapeake’s largest shareholder Southeastern Asset Management....

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US Lets China Bypass Wall Street Primary Dealers for Treasury Orders

Posted on May 22, 2012 in Economic News, Federal Reserve & Bankers

Kevin Hayden –

Source: Reuters via Cryptogon

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People’s Bank of China buys U.S. debt using a different method than any other central bank in the world.

Hayden’s Note:

Gee, big surprise.

The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn’t been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People’s Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

China can now participate in auctions without placing bids through primary dealers....

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The Case for Saving Your Nickels, Literally: Inflation and Metal Debasement

Posted on May 10, 2012 in Economic News, Emergency Preparedness & Survival

Kevin Hayden –

Source: SurvivalBlog

I’ve often mused about how fun it would be to have a time machine and travel back to the early 1960s, and go on a pre-inflation shopping spree. In that era, most used cars were less than $800, and a new-in-the box Colt .45 Automatic sold for $60. In particular, it would be great to go back and get a huge pile of rolls of then-circulating US silver dimes, quarters, and half dollars at face value. (With silver presently around $30 per ounce, the US 90% silver (1964 and earlier) coinage is selling wholesale at 22 times face value–that is $22,000 for a $1,000 face value bag.)

The disappearance of 90% silver coins from circulation in the US in the mid-1960s beautifully illustrated Gresham’s Law: “Bad Money Drives Out Good.” People quickly realized that the debased copper sandwich coins were bogus, so anyone with half a brain saved every pre-’65 (90% silver) coin that they could find. (This resulted in a coin shortage from 1965 to 1967, while the mint frantically played catch up, producing millions of cupronickel “clad” coins....

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If I Wanted America to Fail – Hayden’s Note

Posted on Apr 28, 2012 in Blog, Editorials, & Thoughts, Economic News, Federal Reserve & Bankers, Political Issues

Kevin Hayden –

“The environmental agenda has been infected by extremism—it’s become an economic suicide pact.”

While I enjoyed this video, I was wholly saddened by the fact that it, too, has a strong agenda and seems to have large pocketbooks behind it.  I noticed they didn’t mention US foreign policy ONCE, nor did they mention the damage that the Federal Reserve has done.  All in all, it’s a short video and worth watching, but as I always say, “Question Everything.”

Everyone has an agenda, and it is often times hard to see past the dazzling camera effects, feigned sincerity, and keyword emphasis, but keep your mind sharp and you’ll see through it every time.


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HB 157 Signed into Law: Utah to Accept Gold & Silver Bullion as Currency

Posted on Apr 22, 2012 in Economic News, Federal Reserve & Bankers, Political Issues

Kevin Hayden –

Source: CivSource

Utah is now accepting gold and silver as legal tender for transactions and to settle debts according to a bill recently signed into law by Governor Gary R. Herbert. Several other states have proposed similar measures in the wake of the monetary policies of the Federal Reserve and the decreasing value of paper money.

Utah’s law is notable because it is the first such bill to pass. Over 150 years ago, Congress passed the Legal Tender Act, which authorized the use of paper notes to pay bills, and while paper money still retains the value noted, interest rates governing bonds and other savings or investment vehicles are at historic lows and are expected to remain at those lows through at least 2014.

Gold and silver bullion however, are at historically high values and observers expect those values to remain high for some time. House Bill 157 will allow for gold and silver bullion to be used for transactions based on the weight of the amount of metal presented. That is a key distinction because it expands out the use of gold and silver beyond face value on limited runs of precious metal coins offered through the US Treasury....

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Welfare State: Entitlements Rise 70% Since 2007

Posted on Apr 21, 2012 in Economic News

Kevin Hayden –

Source: Wall St. Journal

The Congressional Budget Office said Thursday that 45 million people in 2011 received Supplemental Nutrition Assistance Program benefits, a 70% increase from 2007. It  said the number of people receiving the benefits, commonly known as food stamps, would continue growing until 2014.

Spending for the program, not including administrative costs, rose to $72 billion in 2011, up from $30 billion four years earlier. The CBO projected that one in seven U.S. residents received food stamps last year.

In a report, the CBO said roughly two-thirds of jump in spending was tied to an increase in the number of people participating in the program, which provides access to food for the poor, elderly, and disabled. It said another 20% “of the growth in spending can be attributed to temporarily higher benefit amounts enacted in the” 2009 stimulus law.

Full article here...

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Just In Time: When the Trucks Stop, America Will Stop with Catastrophic Consequences Thumbnail

Just In Time: When the Trucks Stop, America Will Stop with Catastrophic Consequences

Posted on Apr 04, 2012 in Alt Energy, Tiny Homes, & Structures, Economic News, Emergency Preparedness & Survival, Urban Gardening, Farming & Homesteading

Kevin Hayden –

Source: SHTFPlan by Mac Slavo

Most Americans take for granted the intricate systems that make it possible for us to engage in seemingly mundane day to day tasks like filling up our gas tanks, loading up our shopping carts at the local grocery store, obtaining necessary medications, and even pouring ourselves a clean glass of water. When we wake up each morning we just expect that all of these things will work today the same way they worked yesterday. Very few have considered the complexity involved in the underlying infrastructure that keeps goods, services and commerce in America flowing. Fewer still have ever spent the time to contemplate the fragility of these systems or the consequences on food, water, health care, the financial system, and the economy if they are interrupted.

Hayden’s Note:

I’ve written extensively on this topic, and Mac’s report on Just in Time trucking hits the nail on the head.  Check out some of my past reports on the devastation and consequences we can expect when trucks stop rolling: Empty Shelves: Hurricanes, Disasters, and Civil Unrest – a Contingency Plan, along with Bartering, Inflation, and Growing a Garden

report prepared for legislators and business leaders by the American Trucking Associations highlights just how critical our just-in-time inventory and delivery systems are, and assesses the impact on the general population in the event of an emergency or incident of national significance that disrupts the truck transportation systems which are responsible for carrying some ten billion tons of commodities and supplies across the United States each year....

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Big Pharma Gets 77,500% Return On Lobbying Investment Thumbnail

Big Pharma Gets 77,500% Return On Lobbying Investment

Posted on Apr 04, 2012 in Economic News, Political Issues

Kevin Hayden –

Source: United Republic by Zaid Jilani

Investing is a time-honored American tradition.  Millions of Americans have some sort of investment, and the stock market is an honored cultural institution. But investing your money in a publicly traded company isn’t the only way to make a buck.  Let’s say you’re a powerful industry that wants to make a lot of money with an enormous Return On Investment (ROI). One way you could do so is by investing in lobbyists.

We here at United Republic have put together some stats about the sort of ROI Big Money expects for its lobbying dollars in Washington.  As one example, an average American can expect a ROI of 11 percent for investing in one Blue Chip stock in the Dow Jones Industrial Average in 2010.  Meanwhile, Big Pharma has a ROI of 75,500 percent for the lobbying dollars it spends to bar the government from bargaining for cheaper drug prices through Medicare:

click to enlarge

Of course, that money that Pharma and the rest of the industries on the chart are making is at expense of American taxpayers and American consumers.  ...

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Deficit Spending is (Hidden) Profit for the Federal Reserve

Posted on Mar 25, 2012 in Economic News, Federal Reserve & Bankers

Kevin Hayden –

Source: Olde RebTruth Contributor

Much has been written of the New World Order, the CFR, the Illuminati, the Trilateralists, the Bilderbergs, etc. If such organized bodies exist for a specific objective, as Carroll Quigley would have us believe, a profuse amount of money, such as via a printing press, would definitely be a useful tool to promote their agenda. Does such access to easy money exist, perhaps even hidden right in front of us? Let us reflect on the Federal Reserve and analyze their operation.

When the government wishes to spend money it does not have, it utilizes deficit spending. That means they “borrow” from the Federal Reserve. In practice, a Treasury security is given the Fed and the Fed makes a book entry in an account of the government for the amount of the security. Voila !!! The legislators spend the book entry money and builds roads and bridges, buys military products and funds military projects in their home state, returns a few pennies on the dollar to their constituents for social programs, and all their constituents applaud when their congress critters occasionally go home to press the flesh....

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Investors Should Avoid Oil and Alternatives – An Interview with Dr. Marc Faber

Posted on Mar 25, 2012 in Alt Energy, Tiny Homes, & Structures, Economic News, Global & National News, Police, Military, & War, Political Issues

Kevin Hayden –

Exclusive Source: OilPrice by James Stafford – Truth Contributor

As the world economy teeters on the brink and rising oil prices threaten to de-rail the delicate roots of recovery asked legendary investor Dr. Marc Faber to join us and give his views on high gasoline prices, the shale boom, alternative energy, developments in the Middle East and much more.

In the interview, Mark talks about the following:

• Why investors shouldn’t buy oil right now
• Why alternative energy investments are a bad idea for investors
• Why Iran should be allowed Nuclear weapons
• Which direction oil prices could go and why
• Why Investors should be taking money off the table NOW.
• Why we shouldn’t be pinning all our hopes on natural gas
• Why selling down the strategic petroleum reserve to reduce oil prices is a useless strategy.
• Why the shale boom won’t affect US foreign policy priorities
• Why Obama is a disappointing president

Dr. Faber is a very well known commentator throughout the investment community. He regularly appears on CNBC and is a member of the Barrons round table....

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Iran and the Petro Dollar: “Gold is Money” Thumbnail

Iran and the Petro Dollar: “Gold is Money”

Posted on Mar 25, 2012 in Economic News, Political Issues

Kevin Hayden –

Source: Casey Research by Louis James

Economic crises signal that the current system isn’t working as expected and needs improvement. When it comes to monetary systems, questioning their fundamentals can lead to doubts about whether the preferred medium of exchange will continue to be preferred for long. The large-scale whirlwind of economic trouble around the globe has pushed some to rethink the role of gold in the economy – and to actually move toward bringing it back.

A month ago, a rumor that India is going to pay in gold for oil imported from sanction-struck Iran sent shockwaves through the markets. It was no small deal, both in principle and volume: India is one of Iran’s largest oil buyers, responsible for about 22 percent of total exports and worth about US$12 billion per year. China is next with 13 percent, and Japan is third with about ten. All of them are having a hard time dealing with Iranian oil imports, as the country is under sanctions caused by Western fears regarding its nuclear program.

Then an Israeli news site claimed exclusive knowledge of a possible workaround between India and Iran: settling the purchases in gold....

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Hayden’s Headlines: JP Morgan, Arrested for Siding, FDA Ordered to Cut Antibiotics from Animal Feed

Posted on Mar 25, 2012 in Constitutional & Liberty Issues, Economic News, Global & National News, Health, Food News, & Big Pharma

Kevin Hayden –

After camping for a week, I sort of slacked off on updates.  But I have returned and I’m excited about getting back to daily updates!  Here are a few headlines to get us started:

Corzine Ordered $200M Moved to JP Morgan Days Before MF Global Collapse

America Fires the Most Powerful Laser In History

American insanity: Minnesota man arrested, jailed without bond for incomplete siding on his house

Wave of Banking Resignations Likely Foreshadows Financial Collapse

Judge: FDA must act to cut antibiotics from animal feed

A federal judge on Thursday ordered U.S. regulators to start proceedings to withdraw approval for the use of common antibiotics in animal feed, citing concerns that overuse is endangering human health by creating antibiotic-resistant “superbugs”.

U.S. Magistrate Judge Theodore Katz ordered the U.S. Food and Drug Administration to begin proceedings unless makers of the drugs can produce evidence that their use is safe.

If they can’t, then the FDA must withdraw approval for non-therapeutic use of those drugs, the judge ruled....

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Ruger Halts Gun Sales, 1 Million Firearms Ordered in Q1 – Hayden’s Note Attached Thumbnail

Ruger Halts Gun Sales, 1 Million Firearms Ordered in Q1 – Hayden’s Note Attached

Posted on Mar 23, 2012 in Economic News

Kevin Hayden –

Source: MarketWatch

Sturm Ruger & Co.’s announcement that it would stop taking orders until it clears an enormous backlog serves as the latest sign of the boom times for the U.S. firearms business.

Late Wednesday, Sturm Ruger said that in the first quarter, it had received orders for more than 1 million units. And despite “efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders,” Sturm Ruger said.

Hayden’s Note:

I’ve been following this news piece since it broke, and per the status quo, many “liberty sites” jumped to the conclusions that this is somehow a premeditated initiative to cease production of firearms, or control our 2nd Amendment rights.

Instead, this is merely Ruger doing a phenomenal job at creating some of the most popular rifles and affordable handguns – although I wouldn’t recommend any except the 10/22 rifle – and not being able to handle demand.  This increase in demand is indeed likely from the various draconian legislation being passed, the rising popularity of emergency preparedness, and people seeking to invest in tangibles.  ...

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