Archive of economic news

Shadowstats’ John Williams Expects Hyperinflation Within Months

Posted on Dec 17, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden

TruthisTreason.net

via SilverBear Cafe

There are those predicting inflation, those predicting deflation, those in between… and then there’s the ultra-hardcore hyperinflationists. It’s easy to see where John Williams, founder of Shadowstats.com, fits in. He’s forecasting a hyperinflationary future which he anticipates coming home to roost within months.

To say the least, it’s an aggressive prediction. Still, it’s compelling to get his forecast given his diligence in crunching US government statistics in the feds’ own original and now old-fashioned way, long before the numbers were quite so massaged – almost like a TSA pat down – prior to being released on an unsuspecting public.

In the clip below, Williams presents his perspective and offers some advice for hyperinflationary times. Here’s a highlight from the interview:

“In the US we don’t have a backup system. Zimbabwe had the worst hyperinflation anyone’s ever seen. But they survived, they had an ongoing economy. That was because of the black market in US dollars… we don’t have a black market in the US. There’s no backup to our system.”

For additional perspective you can also read a rebuttal to Williams’ argument....

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10 Reasons Not to Buy Stocks Until After the Next Market Crash

Posted on Dec 07, 2010 in Economic News, Federal Reserve & Bankers

Source: Zero Hedge

Paul Farrell lights it up in his latest market commentary, which puts even some of the more hard-core realists out there to shame: “Wall Street is a loser. Stocks are Wall Street’s ultimate sucker bet. And it’ll sucker you again. You’ll lose, worse than in the last decade. Wake up before Wall Street banks trigger the next meltdown, igniting mass bankruptcy.” Um, wow. And seeing how we have been saying that only absolutely immaculate top tickers should be in this market, we agree wholeheartedly with Farrel.

And here are his 10 reasons to stay away until after the next crash, via Market Watch.

1. American stocks are a high-risk sucker bet

That’s the view of Peter Morici, the former chief economist at the International Trade Commission: that U.S. stocks are a sucker bet. Is Main Street waking up to Wall Street’s con? Maybe. “With corporate profits breaking records, Wall Street anxiously anticipates the return of the individual investors to the stock market. It may be a long wait, because the little guy may have concluded investing in stocks is a sucker bet.”

America’s divided into two stock markets: one for Wall Street’s rich insiders, another for Main Street’s suckers: “Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise....

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Flight to Golden Safety Thumbnail

Flight to Golden Safety

Posted on Nov 23, 2010 in Economic News

Source: Zero Hedge

It’s amazing what a little reminder that an ever more fragile ponzi system is constantly on the verge of total collapse will do to the price of tungsten’s (or closest equivalent, “physical gold”) flight to safety.  Read: It spiked to $1,372.94 today.  I still say silver is am easy bet, but it’s good to diversify into a bit of gold, as well.

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Woman Rips Up IMF Sign Behind Reporter Giving Live Broadcast – Priceless Video Clip

Posted on Nov 22, 2010 in Blog, Editorials, & Thoughts

Source: Daily Bail

4 short protest clips – one of which is absolutely hilarious.

 

This is my favorite of the clips as a woman decides to stand behind the reporter on the street and make her feelings known about the IMF bailout of billionaire bondholders, while he’s doing a live broadcast.  Priceless.

 

Video – General mayhem and chaos – BBC News show Garda kicking a protestor

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$23.05 for a Loaf of Bread? Plus, Ireland’s Bond Crisis and Ron Paul

Posted on Nov 10, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

NIA Releases Food Price Estimates For A QE2 World: Bread To $23.05, Corn To $11.43, $62.21 For Sugar

On one hand we have the WSJ writing day after day that prices of food and energy products are not “really” rising. On the other hand we have empirical evidence that virtually every staple is already higher in price, or is being served in proportionally smaller portions.

One possible arbitration on the issues comes from the NIA, which even if biased, does provide an estimate of where prices of various key perishables will end up in a post-QE2 world. These are as follows: “$11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey’s Milk Chocolate 1.55 oz candy bar.” Granted these are likely somewhat whimsical, but even if they are partially correct, it would mean the bulk of US society, as we pointed out previously, is in for a long, cold, hungry winter....

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China says US Fed Reserve Needs G20 Approval Before Taking Future Actions

Posted on Nov 09, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

China says G20 should monitor US Fed

China’s state media has issued a new broadside at the US Federal Reserve’s move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank.

The Xinhua news agency said in a commentary the Fed was “risking the global recovery by following its own track for economic revival” by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds to stimulate the US economy.

“There is an urgent need for the G20 … to set up a new mechanism that effectively monitors the issuer of the international reserve currency, especially when it is not able to carry out responsible currency policies,” Xinhua said.

“It is necessary for the issuer of the international reserve currency to report to and communicate with the G20 group before it makes major policy shifts.”

Hayden’s Note:

So now China is demanding the Federal Reserve confer and seek approval with the G20 – a global governing body – before making financial decisions, good or bad.  Hmmm, maybe this is what was planned all along. ...

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Ron Paul vs Ben Bernanke, How to Create $850 Billion from Thin Air and GM’s IPO

Posted on Nov 03, 2010 in Economic News, Federal Reserve & Bankers

 Kevin Hayden

TruthisTreason.net

Ron Paul To Chair Monetary Policy Subcommittee

Here is why an open-ended QE2 may be a very moot point: Slate reports that Ron Paul, Ben Bernanke’s greatest nemesis, will chair the all important monetary policy subcommittee. In other words, Bernanke vs Paul theater will soon be a weekly feature. Too bad Alan Grayson will be no longer present.

And now back to the popcorn.

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GM Files 500 Page Paperweight-cum-Prospectus, Hopes To Sell $10 Billion In Stock To Hapless Lemmings

GM has filed its IPO prospectus. At 276 pages, 240 F-pages, and 53-A pages, it is just slightly shorter than the entire text of healthcare reform. And since the fate of ponzi crony capitalism rest on the successful pricing of this dogshit, every single underwriter in the world (20 banks) is a participant, with Morgan Stanley lead left. In a nutshell, Government motors hopes to sell 365 million shares, with an expected price of $26-29/share. Now if only GM could focus on making good cars as much as they care about paying lawyers millions for writing the biggest paperweight in history, all would be well....

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Federal Reserve Most Brazen Of All Ponzi Schemes, US Economy Compared to a Black Hole

Posted on Oct 27, 2010 in Economic News, Federal Reserve & Bankers

Source: Zero Hedge

Bill Gross Calls Fed “Most Brazen” Of All Ponzi Schemes, Says 30 Year Bond Market Is Ending, Compares US Economy To Black Hole

Whatever the conclusion, not only investors, but the American people should recognize that Wednesday, even more than Tuesday, represents a critical inflection point in determining our future prosperity. Of course we’ve tried it before, most recently in the aftermath of the Lehman crisis, during which the Fed wrote $1.5 trillion or so in “checks” to purchase Agency mortgages and a smattering of Treasuries. It might seem a tad dramatic then, to label QEII as “critical,” sort of like those airport hucksters, I suppose, that sold whale blubber for a living. But two years ago, there was the implicit assumption that the U.S. and its associated G-7 economies needed just an espresso or perhaps an Adderall or two to get back to normal.

The Fed’s second round of QE, therefore, more closely resembles an attempted hypodermic straight to the economy’s heart than its mood elevator counterpart of 2009. If QEII cannot reflate capital markets, if it can’t produce 2% inflation and an assumed reduction of unemployment rates back towards historical levels, then it will be a long, painful slog back to prosperity....

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Infographic: Currency Wars, Insider Selling & the Dollar Becoming ‘Toxic Waste’ Thumbnail

Infographic: Currency Wars, Insider Selling & the Dollar Becoming ‘Toxic Waste’

Posted on Oct 25, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

 

Visualizing Currency Wars

Still confused by the whole concept of currency wars? Wondering why every day some new nation is said to have entered into the 21st century digital equivalent of good old fashioned dive bombing, when the only thing diving is the dollar? Then the following interactive infographic from the FT is for you. The data after the jump (free registration may be required) allows readers to explore the background and actions in the so-called currency wars, looking at the economic and political basis of the key countries’ actions.

Full interactive report after the jump.

And now that you know what it is, prepare to see it morph from merely the FX arena, to trade, and possibly elsewhere.

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Insider Selling To Buying Update: 229 To 1

Some earth-shattering insider buying in the past week (a fact not seen in months), courtesy of a large block of stock purchased in Monstanto (for $1 MM), Intel ($384K), and GE ($334K), has done miracles to the general insider selling to buying ratio, and almost managed to offset the $114 million sold in Google, $100 million in Oracle, and $30 million or less sold in Safeway, Discovery Communications, Costco and a total of 61 other names....

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3.5 Million on Strike Worry Goldman Sachs, Global Wealth Distribution and Municipal Pension Deficits

Posted on Oct 12, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

 

US Cities Face Half a Trillion Dollars of Pension Deficits

Big US cities could be squeezed by unfunded public pensions as they and counties face a $574 billion funding gap, a study to be released on Tuesday shows.  The gap at the municipal level would be in addition to $3,000 billion in unfunded liabilities already estimated for state-run pensions…

A Detailed Look At Global Wealth Distribution

Several graphs and an interesting editorial by Tyler Durden over at ZeroHedge.com.

3.5 Million On The Streets And Rising: As French Strikes Escalate, Just How Serious Is The Situation?

Even as everyone in America seems to have anywhere between 2 and 4 opinions on Fraudclosure now that the topic is firmly planted in the MSM newsflow, things in Europe are not looking any better, even though most people there shun McMansions for their grandmothers’ houses. Enter France, where an ongoing national strike (into its fourth day) was just extended by another 24 hours, and 3,500,000 people seem to have no interest in returning to work with any sense of urgency. Apparently the severity and penetration of the strike is much greater than (under)reported on US media, as seen by the following email from Goldman’s Natacha Valla to clients, which explains why things may soon turn much worse....

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The Next Phase of Gold’s Meteoric Rise

Posted on Oct 04, 2010 in Featured Articles, Federal Reserve & Bankers

Source: Seeking Alpha

Now that gold is muscling its way towards $2,000/ounce, the forces of ignorance embodied by post-secondary-accredited yet nonetheless clueless commentators are being given voice by government sponsored media outlets such as CNN. Tokyo Rose was the generic handle accorded to any of a dozen women who, during World War 2 broadcast programming designed to undermine the morale of American troops over the radio.

Coverage such as stories like “The Case Against Gold” on CNN Money are designed to undermine the determination of gold accumulators who are genuinely frightened about the purchasing power of their dollars as their government ‘quantitatively eases’ the economy back onto its feet. By continuously counterfeiting fiat currencies and flooding the markets with such ersatz lucre, the final rush towards economic collapse is momentarily cushioned.

But make no mistake. The acceleration of the rate at which gold increases – the average has been $87 per year since 2000, and in the last 365 days from today, that number is $317 – is an analogous signal that the rate of deterioration of the global economic system as a whole is itself accelerating proportionately....

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BoA Chief Predicts Nasdaq Down 12%, Wall Street Decouples & Volcker Says We’re Broken

Posted on Oct 04, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

Over the weekend, we all watched as gold and silver continued to climb at a steady pace, along with just about all commodities.  If you haven’t read my article, Get Out of the Dollar and Into Tangibles, I urge you to do so before the market becomes even more volatile.

In today’s links, your point of interest should revolve around the BoA Chief predicting the Nasdaq being down by 12%.  I’ve said time and time again that the markets are for suckers, no offense.  The markets are volatile anyway, but I consistently see it drop 150 points, and then a “suckers rally” brings it up 65.  The next day it’s down another 50 points, and the suckers rally brings it back up a few.  On the long-term charts, we’re not gaining anything and before long, the bottom will drop out as the Fed continues to monetize US debt (prints money and buys bonds), other countries race to devalue their own currency against the dollar as it rapidly descends (also known as crashing, haha) and more consumers move into tangibles and precious metals. ...

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Economic News, Oct. 1st, 2010 – Gold, Economic Collapse and the Unraveling Fed

Posted on Oct 01, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden

TruthisTreason.net

Good evening, everyone!

I’ve decided to change up the Economic News section a bit.  I’ll still be bringing you full articles but on a less frequent basis.  More like a weekly editorial or guest article and I’ll probably post that under Featured Articles.  In lieu of multiple daily updates, I’ll be offering several links to the top stories I find.  Traditionally, when I post stories it takes 5-10 minutes to copy, format and get the links adjusted and proper credit given to the source.  Also, I carefully read each story to make sure it’s not full of disinformation, lousy reporting or other erroneous material.

That alone limits how many stories I post each day, so by simply linking you to the top stories, I can get 5 or 6 stories posted up for you to read in the same time frame, although I can’t read them quite as carefully.  There might be some things I disagree with in these stories, but overall – I will be presenting stories that have an impact on your economic and financial situation. ...

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Gold and the Currency Markets

Posted on Sep 29, 2010 in Economic News

Source: Global Research

It is interesting to watch Wall Street defy reality. This is a scene we’ve observed since the early 1960s, the effect of debt on the economy and the nation and in turn on its currency. The result of the profligacy over all those years is the biggest bull market in history in gold and silver. As we write gold is toying with $1,300 and silver with $21.50. Each day a new high is reached in spite of a pending options expiration and the perpetual market rigging and manipulation by the US government.

Hayden’s Note:

I highly recommend you read this entire article.  This isn’t your typical “Buy gold!”-type article.  Instead, it accurately describes the bigger picture (especially towards the last 1/3 of the post) and that is something you need to understand now, not later.

One of the things that astound us is that few professionals have seen this coming over the past 10-1/2 years, and even those that do believe do not think this is an earth-shaking event. What we are about to experience is an event that only occurs every 300 to 500 years....

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Credit Collapse & the Shadow Banking System

Posted on Sep 27, 2010 in Economic News

Source: Web of Debt

via Blacklisted News

While local banks are held in check by the new banking czars in Basel, Wall Street’s “shadow banking system” has hardly been curbed by regulators at all; and it is here that the 2008 credit crisis was actually precipitated.  The banking system’s credit machine is systemically flawed and needs a radical overhaul.

On September 13, the Bank for International Settlements issued heightened capital requirements that will make lending even more difficult for local banks, which do most of the consumer and small business lending today.  The new rules are ostensibly designed to prevent a repeat of the 2008 credit collapse, but they fail to address its real cause, which involves a “shadow” banking system that has largely escaped regulation.

What went wrong in September 2008 was not that the existing Basel II capital requirements were too low but that banks found a way around the rules.  The Basel II rules base a bank’s capital requirement on how risky its loan book is, and banks can make their books look less risky by buying unregulated “insurance contracts” known as credit default swaps (CDS).  ...

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