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Utah Bill Recognizes Gold and Silver as Legal Tender; Full Value of Metal and No Capital Gains Tax

Posted on Mar 11, 2011 in Political Issues

Source: Salt Lake Tribune

The Senate gave final approval Thursday to a bill taking the first step to recognize gold and silver as legal tender in the state.

It voted 16-7 to pass HB317, and sent it to Gov. Gary Herbert for his signature.

The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector.

It would not require anyone to accept them, however, but make it an option. It also would exempt sales of such coins from capital gains tax. It also would order the state to study whether Utah should establish an alternative form of legal tender, such as one backed by silver and gold.

“It will put some pressure on the federal government. That’s the goal here because right now we have a dollar that’s just running away with inflation and our hope is that this is a little bit of a shock that’ll say we want to deal with inflation,” Senate Majority Leader Scott Jenkins, R-Plain City, Senate sponsor of the bill, said in earlier debate....

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Gallup Reports Underemployment Surges To 19.9%, February “Jobs Situation Deteriorates” Thumbnail

Gallup Reports Underemployment Surges To 19.9%, February “Jobs Situation Deteriorates”

Posted on Mar 03, 2011 in Economic News

Source: Zero Hedge

On one hand we have the Department of Truth about to tell tomorrow that NFP based on various seasonal and birth death adjustments increased by 250,000. On the other hand, we have Gallup which actually does real time polling without a procyclical propaganda bias. And Gallup does’t have any good news: “Unemployment, as measured by Gallup without seasonal adjustment, hit 10.3% in February — up from 9.8% at the end of January.

The U.S. unemployment rate is now essentially the same as the 10.4% at the end of February 2010.” And the one indicator that nobody in the mainstream media will touch with a ten foot pole: “Underemployment, a measure that combines part-time workers wanting full-time work with those who are unemployed, surged in February to 19.9%.

This resulted from the combination of a sharp 0.5-point increase since the end of January in the percentage unemployed and a 0.5-point increase in the percentage working part time but wanting full-time work. Underemployment is now higher than it was at this point a year ago (19.7%).”

Unemployment rate:

Gallup's U.S. Unemployment Rate, 2010-2011 Trend

And Underemployment:

U.S. Underemployment, 2010-2011 Trend

A summary of Gallup’s view on February jobs data which likely will be diamterically opposite to what the propaganda machine will spout tomorrow:

Jobs Situation Deteriorates in February

There is essentially no difference between the unemployment rate now and the one at this time a year ago…

Continue reading here – ...

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Former Goldman Sachs Board Member Charged by SEC with Insider Trading

Posted on Mar 01, 2011 in Economic News

Source: Zero Hedge

The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.

Hayden’s Note:

This proves once again that the real enemy of the State is Wall Street.  How much insider trading goes unnoticed?  And by whom? 

The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms.

The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance....

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58% Favor Government Shutdown Until Spending Cuts Are Agreed Upon

Posted on Feb 28, 2011 in Political Issues

Source: Rasmussen Reports

As Republicans and Democrats in Congress haggle over the budget, most voters would rather have a partial shutdown of the federal government than keep its spending at current levels.

A new Rasmussen Reports national telephone survey finds that just 33% of likely U.S. voters would rather have Congress avoid a government shutdown by authorizing spending at the same levels as last year. Fifty-eight percent (58%) says it’s better to have a partial shutdown until Democrats and Republicans can agree on what spending to cut. (To see survey question wording, click here.)

The partisan differences are striking. Fifty-eight percent (58%) of Democrats prefer avoiding a shutdown by going with current spending levels. But 80% of Republicans — and 59% of voters not affiliated with either major party — think a shutdown is a better option until the two sides can agree on spending cuts.

Congress never passed a budget for 2011 but authorized spending for a few months. That authorization will expire soon, and Congress must act quickly or some federal government services could be shut down....

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Why I’m Buying Silver at $30 Thumbnail

Why I’m Buying Silver at $30

Posted on Feb 23, 2011 in Economic News

Source: Zero Hedge

by Jeff Clark of Casey Research

Hayden’s Note:

This is not a recommendation to buy or sell.  Personally, I’m in the air about buying at $30.  I would certainly buy at ~$25 and might add a few more at this $30 range, but to each their own.  This author makes a very valid point and points it into perspective near the end.

The silver price has bounced 27% since January 28, a huge advance for a measly 16 trading days. It’s already soared past its 2010 high and was selling for less than $16 this time last year, a double in 12 months. So, is it pricy? Or should we ignore the run-up and keep buying?

I’ve read a few articles that say we should expect silver to drop to the $25 level, and one pinpointed $22. Others, of course, see bullish tea leaves for the near term and believe it’s headed higher. Of those that assert silver will decline, most believe it will be temporary, though one writer claims the bull market in precious metals is over (I think he’s a holdout from the gold-is-a-bubble camp)....

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18 Reasons Why the Middle Class is in Deep Trouble

Posted on Feb 22, 2011 in Economic News

Source: Economic Collapse Blog

Have you heard the news? The stock market is absolutely soaring and according to the U.S. government and the Federal Reserve we are in the beginning stages of a robust economic recovery. The S&P 500 is up 6.8 percent so far in 2011, and the stock market recently hit a two and a half year high. So shouldn’t we all be celebrating? Well, if stock market performance was an accurate measure of economic health, then Zimbabwe would have had one of the healthiest economies on the entire globe during the last decade. But just like Zimbabwe’s stock market was artificially pumped up with “funny money” that was rapidly being devalued, so is ours. All of the “quantitative easing” that the Federal Reserve has been doing is pumping plenty of money into the financial markets and is helping to inflate a false stock market bubble, but it is doing very little to alleviate the suffering of the U.S. middle class. In fact, when you take a closer look at the numbers you quickly find out that the suffering of the middle class is getting even worse....

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Assorted Links Regarding Today’s Silver Explosion, Rising Oil and Inflation Thumbnail

Assorted Links Regarding Today’s Silver Explosion, Rising Oil and Inflation

Posted on Feb 21, 2011 in Economic News

Source: Zero Hedge & Various Headlines

There was a time, long ago, when the dollar was a flight to safety instrument. Those days are gone. DXY barely budging as the overnight session begins, while silver has already put $34 in the dust. Last: $34.26 and parabolic.

April Crude literally flying off the shelves. All those who thought the 4 pm price was a misprint and shorted… our condolences.

Time to announce 10 emergency POMOs tomorrow… or else.

Oil Goes Berserk In Electronic Trading As WTI Passes $98

Silver Crosses $34

Many Riots in Arab Countries; Silver Explodes  

Inflation Makes a Comeback as Prices Rise for Food, Fuel 

Short Squeeze In Silver!  Could Be the Big One:  John Rubino...

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Judge Finds MERS Has No Right to Transfer Mortgages, Finds Entire MERS Process Illegal

Posted on Feb 14, 2011 in Economic News

Source: Zero Hedge

There was a time when news, especially very bad news, moved stocks. The last time that occurred was in the middle of 2009, before most robots had any idea just how massive Bernanke’s schizoid break with reality was. Now, that the appropriate sociopathology is fully priced in, bad news tends to have an even more profound upside impact on stocks than good news, as it guarantees that the Zimbabwe stock market will be upon us far sooner than if the economy were to have to go through another inter-QE episode. Which is why the just released news out of US Bankruptcy Judge Robert Grossman of Central Islip, New York, that MERS lacks rights to transfer mortgages will likely send the entire S&P circuit breaker up.

From Bloomberg:

“Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said…U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,” wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages…”

“MERS’s theory that it can act as a ‘common agent’ for undisclosed principals is not supported by the law,” Grossman wrote in a Feb.


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IMF Calls for US Dollar Replacement – Hayden’s Note Attached

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

Source: CNN

The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.

The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs

While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.

Hayden’s Note:

See my previous articles outlining the SDR, the UN and the IMF.

UN Report Suggests Scrapping Dollar – Lengthy Editorial by Hayden Included (I kind of got off on a rant in this article, but it’s good)

The Purpose Behind Engineered Economic Collapse

The IMF’s Special Drawing Rights vs. the US Dollar, An Attempt to “Rebalance” the World Economy (Excerpt below)

“When asked about a plan “designed to increase the use of the IMF’s special drawing rights” at a CFR conference, Geithner replied, ”we’re actually quite open to that.”  The International Monetary Fund is essentially a global bank and their “global currency” is called the SDR – or special drawing rights. 


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MIT Billion Price Project Scans for Daily Consumer Prices, Confirms Inflation Thumbnail

MIT Billion Price Project Scans for Daily Consumer Prices, Confirms Inflation

Posted on Feb 11, 2011 in Economic News

Source: Zero Hedge & MIT

Just in case there was still any lingering doubt that prices in the US are surging far above whatever the CPI may indicate, we present the MIT Billion Price Project. Unlike the CPI which is a gross misrepresentation of what is really happening on the ground in price terms, MIT actually compiles real time price data about a universe of products. From the methodology section: “our data are collected every day from online retailers using a software that scans the underlying code in public webpages and stores the relevant price information in a database. The resulting dataset contains daily prices on the full array of products sold by these retailers. Our data include information on product descriptions, package sizes, brands, special characteristics (e.g. “organic”), and whether the item is on sale or price control.” The attached chart confirms what anyone (but not Ben Bernanke) who actually buys goods and services in the US knows all too well.

As for monthly inflation, compared to the CPI, it is also not pretty:

Link to source....

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The Managed Perception of a Growing US Economy vs Reality Thumbnail

The Managed Perception of a Growing US Economy vs Reality

Posted on Feb 07, 2011 in Economic News

Source: Zero Hedge

Managing perception is the game plan, not fixing what ails the real economy. Why? Cui bono: it’s all about rescuing a politically sacrosanct and highly insolvent financial sector.

According to some analysts, the “recovering” U.S. economy is poised to enter a phase of explosive growth. Other analysts see evidence that the bogus “recovery” (all Fed stimulus “hat” and no organic growth “cattle”) is teetering on the edge of implosion from any number of causes: high inflation, declining home values, high oil prices, etc.

My view? Whatever. The real economy is so detached from the one presented by official data and the stock market that “growth”, explosive or modest, is a matter of managed perception, not reality.

As for the implosion, Central State intervention and massive spending/credit creation has already limited it to a decline heavily smoothed by extended unemployment, food stamps, zero interest rates, Federal Reserve purchases of Treasuries and mortgage instruments, and massive Federal spending on everything from fighter jets to Medicare.

The relentlessly managed perception is that the “spot of bother” circa 2008-09 is history, and the situation has been restored to normalcy, i.e....

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Fed Reserve Chairman Ben Bernanke to Give Rare Press Conference

Posted on Feb 03, 2011 in Economic News, Federal Reserve & Bankers

Source: Activist Post

The head of the US Federal Reserve will take questions from the press Thursday, a step that experts say is just short of revolutionary for the normally reserved central bank.

Instead of delivering an ever-so-carefully manicured speech and then slipping off the dais to the echo of gentle applause, Chairman Ben Bernanke will, unusually, hang around for a few questions from the press before departing.

It’s a seemingly small step, but Bernanke knows any unscripted response he utters will be parsed, reported on and put to work by investors, with billions if not trillions of dollars at stake.

Hayden’s Note:

It would appear as if Bernanke’s handlers are attempting to get the public used to seeing the “softer side” of ‘ole Ben before he faces off against Rep. Ron Paul – now head of the House Financial Committee.  It’s like the Friday Night Fights when Bernanke and Paul face off.  Why I despise Ben Bernanke and am a strong supporter of Ron Paul, I must admit; Bernanke is a very intelligent man.  Classically schooled, he was considered a child prodigy. ...

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The CIA on Egypt’s Economy, Financial Deregulation and Protest

Posted on Jan 31, 2011 in Economic News

Source: Zero HedgeNomi Prins

The CIA on Egypt’s Economy, Financial Deregulation and Protest

The ongoing demonstrations in Egypt are as much, if not more, about the mass deterioration of economic conditions and the harsh result of years of financial deregulation, than the political ideology that some of the media seems more focused on. Plus, as Mark Engler cross-posted on Alternet and Dissent yesterday, the notion that the protests in Cairo are ‘spontaneous uprisings’ misses the mark. As he eloquently wrote, “there are extraordinary moments when public demonstrations take on a mass character and people who would otherwise not have dreamed of taking part in an uprising rush onto the streets. But these protests are typically built upon years of organizing and preparation on the part of social movements.”

Hayden’s Note:

Let’s not forget that the United States certainly wouldn’t mind if Mubarak is toppled by his own people.  Egypt, with the largest Arab population in the world, has been a bit rough around it’s edges in regards to the Israel/American plan to invade Iran.  With a new puppet installed… err, President… that is a bit more receptive to Western interests, I’m positive that the US has already played their part in this “uprising.”  Also, Egypt receives more aid from the United States than any other country in the world with the exception of Israel.


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A Simple Explanation of Derivatives

Posted on Jan 19, 2011 in Economic News, Featured Articles

Kevin Hayden

Dictionary definition of financial derivatives – Derivatives is the collective name used for a broad class of financial instruments that derive their value from other financial instruments (known as the underlying), events or conditions.


A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier, typically a commodity, bond, equity or currency. Examples of derivatives include futures and options. Advanced investors sometimes purchase or sell derivatives to manage the risk associated with the underlying security, to protect against fluctuations in value, or to profit from periods of inactivity or decline. These techniques can be quite complicated and quite risky.

Are you lost when it comes to derivatives and financial instruments? When you hear the news talk about bundled toxic assets or future securities, do you wish there was a simple way to understand all of this nonsense without spending hours researching it? This simple article will help you understand and navigate through the maze of financial mumbo-jumbo in the headlines and secure a foundation upon which you can continue to research on....

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Deconstructing Commodity Inflation: “You Ain’t Seen Nothing Yet” Thumbnail

Deconstructing Commodity Inflation: “You Ain’t Seen Nothing Yet”

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

Source: Zero Hedge – Mike Krieger

Another great post from the guys and gals at Zero Hedge. Bookmark them for economic news and analysis!

Thanks Ben…You Have Destroyed the Social Fabric of the World

History is littered with the carcasses of men that in their exaggerated hubris attempted to stop the forces of nature and the markets only to fall flat on their faces.  We tell the stories of these men in history books and myths from prehistory, but it never stops men of successive generations from trying it all over again.  What the current political class the world over (at the behest of Wall Street financial terrorists and other big corporate interests) are doing falls into the same exact formula of prior historical failures.   Some of the historical figures that attempted to beat back nature were great warriors or kings that just reached too far.  Some of them were evil megalomaniacs whose desire was nothing short of absolute power in their hands over any of the unfortunate human beings that happened to be in the way.  Ben Bernanke is neither of these. ...

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