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Global Financial Markets Tremble as Bad Economic News Continues to Pour in

Posted on Jun 01, 2011 in Economic News, Federal Reserve & Bankers – Kevin Hayden

Source: Economic Collapse Blog

As the U.S. economy starts to slow down once again, global financial markets are beginning to tremble.  Over the past couple of weeks, all kinds of bad economic news has been pouring in.  The ADP jobs report was a “disaster”, the housing numbers are dismal, manufacturing has slowed way down and consumer confidence is dropping like a rock.  The Democrats and the Republicans are bickering over the debt ceiling and this is causing a lot of uncertainty as well.  All of this bad news is starting to spook investors.  On Wednesday, the Dow was down 279 points and the NASDAQ was down 65 points. It was the worst day of the year for the Dow, and many are wondering what is going to happen next if we see even more bad economic data.  QE2 is slated to end at the end of the month, and already the bond markets seem to be anticipating QE3.  If the U.S. economy enters another significant downturn during the second half of 2011, it seems quite likely that the Federal Reserve would attempt to do something to stimulate the economy and that would probably mean more money printing....

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When Faith in US Dollars and Debt is Dead, the Game is Over – and that Day is Closer Than You May Think

Posted on May 31, 2011 in Economic News – Kevin Hayden

Source: Michael Snyder

A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt.  When that day arrives, the game will be over.  Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries.  The U.S. dollar has been the default reserve currency of the world for decades.  All over the globe it was seen as a strong, stable currency that was desirable for international trade.  U.S. government debt has long been considered the “safest debt” in the entire world.  Whenever there was a major crisis, investors would flock to U.S. Treasuries because they were considered a rock.  Sadly, all of this is now changing.  Today the rest of the world is losing faith in the U.S. financial system.  In fact, even the United Nations is now warning of the collapse of the dollar.  But if the U.S. dollar and U.S. Treasuries collapse, that will be an absolute nightmare for the U.S....

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Bankrupt Nations Try to Stop the Future from Happening Through the IMF: FAIL

Posted on May 26, 2011 in Economic News, Featured Articles – Kevin Hayden

Source: The Sovereign Man – Simon Black

Debt is slavery… or at least indentured servitude of the worst kind.  That looming mortgage, the high interest credit card debt, the short-term car loan– these are the forces that keep people from breaking free and taking action.

Ironically, debt begets more debt. According to FinAid, the average US student loan debt for a four-year private university graduate is nearly $36,000, and $24,000 for public. Throw in that first car loan and maybe a mortgage, and suddenly you’re staring at hundreds of thousands of dollars in demoralizing claims on your future income.

At this point, most people figure… ‘hey, I’m already in debt up to my nose, might as well get in up to my eyeballs and buy a new plasma screen on credit.’

Debt is an enormous psychological burden that influences life’s major decisions. It’s why so many people stay committed to jobs that are unfulfilling in cities they detest under conditions they find disheartening. Nobody wants to rock the boat too much… take too many risks and you could lose your job, and hence the ability to make those monthly payments....

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Hedge Fund Managers Pour Assets into Farmland as Doomsday Food Scenario Approaches

Posted on May 25, 2011 in Emergency Preparedness & Survival – Kevin Hayden

Source: Neev M. Arnell – Natural News

Going back to the land has always been thought of as a thing for hippies, eco-nuts, and doomsday survivalist, but now hedge fund managers are jumping on the bandwagon too. The New York Observer recently spoke to such a hedge fund manager working on a fund that ranks as approximately the 15th largest farmer in America. 

Hayden’s Note:

How many times have I had to say, “Invest in tangibles [ie, land, farm equipment, precious metals, etc] ?”  As Will Rogers once said, “Invest in land… they’re not makin’ any more of it!”

The media first picked up on the land investment pattern in 2008 in the February Times of London piece, “The Hedge Fund Manager Who Bought a Farm,” which detailed a British hedge fund manager’s attempt to play off the rising prices of grains in order to get a hold of local farmland. It was followed shortly by coverage by the Financial Times that said hedge funds and investment banks were “swapping their Gucci for gumboots”. Today, the increase in the purchase of farmland both in America and abroad is so drastic that in February, Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City, warned against the possibilities of a farmland bubble.A January study commissioned by the Organization for Economic Cooperation and Development estimated the amount of private capital currently committed to farmland and agricultural infrastructure at $14 billion.


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Smucker Hikes Coffee Prices for 4th Time in a Year

Posted on May 24, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

It may be time for the CME to hike some coffee margins as prices for the legal drug are starting to get out of control. According to Dow Jones, Smucker has just increased its average coffee product price by 11% in its 4th price hike in just the past year. This, along with all other comparable deflationary developments (according to some) could not have been foreseen by anyone, and will lead to the Fed’s Elizabeth Duke discussing next year how, very inexplicably, America’s low and middle classes are forced to choose between espresso shots and toilet paper.

From Dow Jones:

The food company, which also makes jams, jellies and Jif brand peanut butter, said the move is driven by sustained increases in green coffee costs. It disclosed similar price increases in February, August and last May.

The increase applies to such brands as Folgers, Dunkin’ Donuts and Millstone.

Smucker reported an 11% increase in U.S. retail coffee sales for the nine months ended Jan. 31, while profit during that period grew 12%.


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China Prepares to Launch Gold ETFs as Utah Becomes First State to Make Gold and Silver Legal Tender

Posted on May 23, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

Following Friday’s news that China has now surpassed India as the world’s largest buyer of gold, it is becoming increasingly obvious that the country is trying to capitalize on the popular interest in the precious metal by transferring the trading infrastructure away from US to domestic capital markets. First, it recently launched a 1 kilo gold futures contract on the HK Merc in an obvious attempt to undermine the Comex monopoly in the space, and next it seems that China has the GLD plain in its sights, as it plans to start exchange-traded funds, tapping rising demand in China, the world’s biggest investment market for the precious metal. Often blamed for the recent volatility in the price of gold, precious metal ETFs have been primarily an instrument available to those with access to the US market. That appears to be ending, and with an entire nation suffering from gold fever (as inflation continues to be goalseeked by the China politburo above expectations in what appears to be a programmed attempt by the Chinese central planners to push its population into gold hoarding) and about to be offered a simple way of investing in (paper) gold, it is likely that the price of gold (and soon thereafter all other commodities) will see unprecedented spikes in price in either direction as millions more are given direct exposure to trading the non-dilutable currency equivalent.


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The Extended Confessions of an Economic Hitman

Posted on May 20, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

The book “Confessions of an Economic Hit Man” by John Perkins is easily one of the most engrossing pieces of non-fiction one can read to learn about the true drivers behind globalization, espionage, corporate cronyism, the emergence of such “artificial” organizations as the World Bank and the IMF, and most importantly, debt “enslavement”, all as seen from an insider’s view. It explains in simple words why over the past 40 years the developing world paradigm has been exploited as heavily as it has, why the BRIC concept was instrumental as a Red Herring to perpetuating the myth of endless growth, and why credit must always flow no matter what to keep the status quo in power. For those who have read the book, and for those who are on the fence about reading it, below we present the three part presentation by John Perkins at the 2006 Veterans for Peace National Convention in which he expounds on all the key ideas in his book, and does an extended Q&A covering topics not discussed previously....

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Timothy Geithner Threatens Congress with Doomsday Scenario if Debt Limit Not Raised Thumbnail

Timothy Geithner Threatens Congress with Doomsday Scenario if Debt Limit Not Raised

Posted on May 10, 2011 in Constitutional & Liberty Issues, Featured Articles, Federal Reserve & Bankers – Kevin Hayden

Hayden’s Note:

As you read this article, please keep in mind that just a short time ago, martial law was threatened on the Congressional floor if the bailouts didn’t happen.  Now, some say that was merely a Congressional ‘procedural term’ but I’m still up in the air about it.  Either way, know that certain elements of our system routinely employ intimidation to get what they want – Constitutional or otherwise.

Source: Money and Markets

Consider this doomsday scenario: Catastrophic impacts felt by every American.

A broad range of government payments stopped, limited, or delayed, including military salaries, Social Security, and Medicare payments, interest on debt, unemployment benefits, and tax refunds.

Sharply higher interest rates and borrowing costs, declining home values, and reduced retirement savings for Americans.

In sum, a financial crisis more severe than the crisis from which we are only now starting to recover.

My words? Not a single one!

They are all taken directly from a widely distributed Treasury Department letter dated exactly one week ago.

The letter is addressed to Speaker of the House John Boehner....

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Almost Half of Detroit Unable to Read, “Functionally Illiterate”

Posted on May 07, 2011 in Global & National News – Kevin Hayden

Source: RT News

A study by the Detroit Regional Workforce Fund found that 47 percent of adults in the city are ‘functionally illiterate’.

‘Functionally illiterate’ means they struggle with day-to-day tasks, like reading job applications, following a bus schedule or understanding product labels.

Those deemed illiterate however have been educated. The report indicated that the same group found to be ‘functionally illiterate’ had completed elementary education, where reading is taught and half of the group had either a high school diploma or a GED.

Nearly half of the city’s population lacks the necessary skills to work in even the most entry level and remedial jobs.

Increasing adult educational attainment is critical to connecting the one in two city residents who are currently unemployed and underemployed to good jobs in our new economy,” said Karen Tyler-Ruiz, director of the Detroit Regional Workforce Fund. “This is a critical opportunity for Detroit, where we know that access to services to improve basic skills like reading and math are extremely limited in and around the city.”

Detroit however is not Michigan’s only problem spot....

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Plan To Divide America at the New Madrid Fault; How We Can Be Free of Crisis Engineers Thumbnail

Plan To Divide America at the New Madrid Fault; How We Can Be Free of Crisis Engineers

Posted on May 07, 2011 in Blog, Editorials, & Thoughts, Featured Articles – Kevin Hayden

Source: Nicholas West and Zen Gardner

Activist Post and Before It’s News

The Powers-That-Be seem to be ramping-up efforts to drive a stake right into America’s heart(land).  Natural disasters are on the rise, and an increasing amount of evidence is leading to the conclusion that these natural disasters might not be completely natural.

Some already have speculated that we are entering a time of weather and earthquake wars, as the incidence of mega disasters has risen across the world.  Is government experimentation simply going awry, or is it being orchestrated on purpose?

The hidden hand has always cloaked itself using a wide array of techniques to conceal its divide-and-conquer agenda.  By owning the ultimate weapon — the very climate upon which we all depend — entire regions can now be put under a full spectrum of remote control already served up through climate change, economic instability,  and the military-surveillance complex brought in under the false threat of terrorism.

Let’s first look at the evidence for the manipulation of natural disasters and the proposed government solutions, then move to the massive preparation being undertaken by FEMA indicating that something big is on the way for the area of The New Madrid Fault as indicated by the current cluster of disasters in the region. 


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On the Road with Ron Paul

Posted on May 03, 2011 in Constitutional & Liberty Issues, Political Issues – Kevin Hayden

Source: Economic Policy Journal

Last week Friday, I had the opportunity to spend time with Ron Paul.

It was a chance to get a sense of Dr. Paul that went beyond the short sound bites and brief television appearances that is the way we generally get to gauge presidential candidates. I met him in Reno, NV where he was on the campaign trail. I came up from California for the meeting.

Because of Dr Paul’s tight schedule, Jesse Benton, Paul’s communication director, gave me 30 minutes at 7:00 in the morning. Since Paul had given a speech the night before at the University of Nevada-Reno, I wasn’t sure how much energy he would have that early in the morning. But at 7:00 when I sat down with Dr. Paul at the Silver Legacy Hotel, he was wide awake and clearly ready for a full day.

On television the gentleman that Ron Paul is comes across, but in person there is more. There’s a personal warmth and almost a Ronald Reagan-like charm about him. (There’s pluses and minuses to Ronald Reagan, the president, but he did have that charm, and so does Dr....

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Panic Selling of the US Dollar Now Underway as Debt System Implodes

Posted on Apr 29, 2011 in Economic News – Kevin Hayden

Source: Natural News – J. D. Heyes

To most Americans it’s unthinkable that the U.S. dollar could someday be relegated to second-class status as a currency, but what they may not realize is that the transition is already underway.

Hayden’s Note:

You can now rest easy and welcome your new currency, the Timothy Geithner / IMF-backed SDR.  Nothing to see here, folks.  Move along.  Go back to watching the Royal Wedding.  Nevermind the fact that a historical speech/conference was given yesterday by the Fed chairman, “Mr. Ben Ber-nank.”

Reports this week marked the dollar’s continued slide – it reached a 16-month low against the euro and slid to a historic low against the Swiss franc on Tuesday – while at the same time predicting something we’ve been telling you for years now, namely that the dollar is on its way out as the world’s reserve currency.

Impossible, you say? Think again. Signs of the dollar’s imminent collapse are everywhere.

Look at the economic and investment juggernaut that is China. Beijing’s economy has been growing in leaps and bounds and as such used to be the largest holder of U.S.


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McDonalds Hires 62k Part-Time Workers, Turns Away Almost One Million Others in One Day

Posted on Apr 28, 2011 in Global & National News – Kevin Hayden

Source: Zero Hedge

This is what the US economy has been reduced to: McDonalds reports that as part of its employment event to hire 50,000 minimum wage, (mostly) part-time workers, subsequently raised to 62,000 it received a whopping 1 million applications, or a Tim Geithner jealousy inducing 6.2% hit rate (h/t X. Kurt. OSis).  Alas, the US economy is now so pathetic that the bulk of the population will settle for anything. Literally anything. And the saddest part: over 938,000 applicants were turned away. Here’s hoping to Burger King needs a few million janitors in the immediate future too. And yes, aside from reality, things in America are really recovering quite nicely.

From Bloomberg:

McDonald’s and its franchisees hired 62,000 people in the U.S. after receiving more than one million applications, the Oak Brook, Illinois-based company said today in an e-mailed statement. Previously, it said it planned to hire 50,000.

The April 19 national hiring day was the company’s first, said Danya Proud, a McDonald’s spokeswoman. She declined to disclose how many of the jobs were full- versus part-time.


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10 Economic Doomsday Trends Set to Destroy America

Posted on Apr 21, 2011 in Economic News, Featured Articles – Kevin Hayden

Source: Zero Hedge

Feeling like the daily dose of objective “truth” from Tim Geithner’s latest media circuit has got you down? Fear not: here is MarketWatch’s Paul Farrell summarizing the 10 ways in which the very system is destroying America, to lift your spirits up. To wit: “Doomsday Capitalism? Capitalism is killing America? Yes, that’s the message in my tenth book. “Doomsday Capitalism, 10 Self-Destructive Trends.” But you’ll never see it in print. No one, even book publishers want to read this truth: Capitalism is destroying America. Why? Super-Rich Capitalists get rich off these macro trends. They want happy talk. Back in 2007, Vanguard founder Jack Bogle called my warnings “prescient.” But that didn’t stop the meltdown. Next time financial historians warn of a bigger meltdown; a total collapse has been the destiny of every nation for eight centuries. This time, capitalism is the saboteur.” Cheerful stuff.

10 Doomsday trends America can’t survive

Capitalism has become a religion for the Super Rich, with many such “saviors.” Heresies must be denied, such as this one: Doomsday Capitalism is destroying America from within....

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Greek 2 Year Bond Yield Passes 20% Thumbnail

Greek 2 Year Bond Yield Passes 20%

Posted on Apr 18, 2011 in Economic News – Kevin Hayden

Source: Zero Hedge

Following the S&P news, oddly enough, one is not seeing a flight to safety away from US paper and into Greek. In fact, observing the absolutely record 20% yield print on the 2 Year Greek bond, one may be excused to speculate that the inverse is happening.

Hayden’s Note:

Wha?  You mean to tell me that some investors are actually playing it smart?  20% yield on a 2-year govt bond would scare the hell out of me… then again, I’m not an investor.  It would immediately tell me – and something everyone already knows if you pay attention to geopolitics and the global economy – that Greece is in serious trouble.  If they’re willing to pay out 20% after 24 months, they either don’t foresee a Greece in 24 months or they know something we don’t, such as a massive infusion from various sources; IMF, American Fed, investors, etc etc.  Would you invest in a risky start-up company that offers that yield when they’ve been the focus of riots, upheaval and massive shortages in the last 24 months? ...

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