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EmailWednesday, November 11, 2009, 10:45 am, by saxplayer00o1
- Energy agency warns of falling investment
- S&P Cut Ratings on Record 26,387 Home Loan Bonds Last Quarter
- Senator: 131,000 homeless vets a 'disgrace'
- Homelessness Soars In Milwaukee Area--Area Shelters Full
- Fitch Says U.K. Rating Most at Risk Among Top-Rated...(then warns about U.S. AAA Rating)
- Bill Gross on CNBC...China and Japan lose 13% on U.S. Treasuries (at 4:30 on Video)
- Banks face increase in funding costs
- Fed: GMAC to receive more bailout money
- Harvard Profs: This Crisis Is Not Over
- Crisis mode declared on deficit (New York)
- Schwarzenegger: This year's budget gap may hit $7 billion
- Ambac Financial points to possible chapter 11
- Aging boomers strain pension funds (Florida)
- Growth in Iowa's unfunded pension liabilities
- World Bank: yuan to become alternative reserve currency
Economy
Energy agency warns of falling investment
The agency estimates that $1.1 trillion needs to be invested annually from now until 2030, for a total of $26 trillion, just to meet energy demand on current growth trends. Should governments adopt plans to limit greenhouse gas concentrations in the atmosphere to 450 parts per million of CO2 equivalent, an additional $10.5 trillion needs to be invested over that time period, the IEA said.
S&P Cut Ratings on Record 26,387 Home Loan Bonds Last Quarter
Standard & Poor’s cut ratings on a record 26,387 U.S. residential mortgage-backed securities in the third quarter. The figure was more than double the previous quarter’s 10,459 downgrades, the New York-based ratings company said today in a statement. No bonds were upgraded last quarter, S&P said.
Senator: 131,000 homeless vets a 'disgrace'
The VA has concluded that 260,000 veterans are homeless over the course of a typical year, he added. An estimated one in four homeless men or women served in the military. The increasing number of servicemen and women returning from Iraq and Afghanistan, combined with the economic downturn, Menendez noted, has contributed to a recent spike in the number of homeless families with veterans. "The federal government ... is not doing nearly enough when so many new veterans are falling through the cracks," he said. "The current system of dealing with their needs is being overwhelmed."
Homelessness Soars In Milwaukee Area--Area Shelters Full
"Every time you call them, they're all full already," Neal said."It's full. Every shelter is full," said Nancy Szudzik, the director of the Salvation Army's Emergency Lodge.The Salvation Army's Emergency Lodge is one of the few shelters equipped to care for homeless families."That's the fastest growing population, the families. That's the fastest growing population for homelessness, is families now," Szudzik said."Are you turning people away?" WISN 12 News reporter Kent Wainscott asked. "Unfortunately, all the time," said Bernie Juno, shelter director of Waukesha's Hebron House.
Fitch Says U.K. Rating Most at Risk Among Top-Rated...(then warns about U.S. AAA Rating)
The U.S.’s rating also might be at risk of a review if its fiscal position does not stabilize in the next couple of years, Riley was reported by Reuters as saying in a television interview.
Bill Gross on CNBC...China and Japan lose 13% on U.S. Treasuries (at 4:30 on Video)
Gross notes that over the last year alone the depreciating dollar means that every single Treasury purchased by China, Japan etc with a 1 to 2 % yield has essentially generated a negative 13 to 14% return. Yes, NEGATIVE 13 to 14% return
Banks face increase in funding costs
Banks around the world face increases in funding costs that could cut profits and hit their customers as they look to refinance $7,000bn-plus in short-term debt expiring in the next three years with longer-dated bonds, according to research released on Tuesday. Institutions seeking to reduce their reliance on short-term paper will have to pay up because interest rates are likely to rise and governments will stop supporting the financial system, the study by the credit rating agency Moody’s concludes." "Moody’s estimates that a lender wanting to refinance a short-term government-guaranteed bond with 10-year paper could see costs rise nearly 7 percentage points
Fed: GMAC to receive more bailout money
GMAC, a crucial player in the U.S. auto industry, has been unable to raise the $11.5 billion regulators said it needed after stress test results were announced in May. The Fed says the finance company is expected to close the gap with more money from the $700 billion financial bailout. GMAC, already the recipient of $12.5 billion in taxpayer infusions, is negotiating with regulators over how much more it will receive
Harvard Profs: This Crisis Is Not Over
The global economic crisis is not over, said Harvard University professors Kenneth Rogoff and Niall Ferguson, challenging the G20 group of wealthy countries' assumptions that the world is on the road to recovery. Public spending in the form of bailouts and stimulus packages will create a debt burden for the world's governments, the two professors told Bloomberg. “The financial crisis may eventually morph into a government-debt crisis,” says Rogoff, former chief economist at the International Monetary Fund.
Crisis mode declared on deficit (New York)
"State is "running out of money,' governor says in plea for cuts" ""Some say the deficit is not even as deep as we have described it. Some say the revenues are coming back, and others say Wall Street will bail us out. I suggest to you that that is wishful thinking, my colleagues," Paterson said. "And we do not have time to engage in it." As soon as the $132 billion budget was created in April, fiscal critics were warning that it was built on overly rosy revenue projections and inflation-busting spending levels. Monday, Paterson joined in, warning lawmakers against making spending promises that cannot be kept or resorting to "phony solutions" for the deficit.
Schwarzenegger: This year's budget gap may hit $7 billion
Gov. Arnold Schwarzenegger estimated Monday that California's budget will fall out of balance by $5 billion to $7 billion this fiscal year, on top of a $7.4 billion gap already projected for 2010-11. If true, state leaders would confront at least a $12.4 billion to $14.4 billion problem when Schwarzenegger releases his budget in January. California currently has an $84.6 billion general fund budget
Ambac Financial points to possible chapter 11
Ambac reported that, should the OCI decide to initiate delinquency proceedings in order to protect the interests of its policyholders, an event of default could occur with respect to Ambac’s debt (that is, the holding company debt), which would in turn accelerate principal totaling $1.64 billion, as well as terminate credit default swap contracts insured by Ambac Assurance. This in turn could liquidiate mark-to-market claims for underlying exposures in swaps totalling approximately $23 billion, the company said
Aging boomers strain pension funds (Florida)
Now, Florida is headed for an even grayer future in the Baby Boomer retirement era, state economists and demographers predict. The consequences: worker shortages and severe strains on public pensions and government services. By 2030, more than one in four state residents will be 65 or older – or 26 percent, compared to 17 percent today, the University of Florida Bureau for Business and Economic Research says
Growth in Iowa's unfunded pension liabilities
Because of higher usage as well as recent market losses, the program faces $4.9 billion of unfunded liability, up from $2.7 billion a year ago. That amount, like a house loan, is amortized over a 30-year period. The increase in liability has caused major concern among IPERS officials. While current retirements are not in jeopardy, the program faces major shortfalls in 20 or so years if the revenue equation isn't balanced now, they told the legislative Public Retirement Systems Committee Monday
World Bank: yuan to become alternative reserve currency
World Bank President Robert Zoellick said on Wednesday that the U.S. dollar's role as a reserve currency was "relatively secure", but the Chinese yuan will provide an alternative over time. "Over the next 10-15 years, you will firstly see renminbi to be internationalised and provide an alternative," he said at a World Bank conference in Singapore. Zoellick also said the U.S. should not be complacent about the dollar.
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"The US dollar is becoming more and more a worthless piece of paper. And it is going to get worse. The BSP reminds us that 77 percent of the Philippines’ $40 billion in foreign reserves is in dollars. Too bad the BSP did not do what India just did and convert $6.7 billion into something valuable: 200 tons of gold.
So you and I are overpaying for crude oil, the BSP is bowing to the US dollar, and the rest of the world is dumping greenback as fast as possible.
On October 7, I wrote: “As of this writing the dollar index is 76.293, the spot gold price is $1,040, the peso is 46.60 and the PSE index is 2,967. Three of these four will be significantly increased in value by the end of the year.”
The dollar index is now 74.923, gold is $1,106, the PSE is 2,995 and the peso is 46.79."
"California, tapping the municipal bond market for the fifth time in six weeks, agreed to increase the yield on $1.9 billion in bonds a full percentage point above what it estimated last week for a smaller issue."
"The company behind games such as "Madden NFL 10" also said Monday it is laying off 1,500 employees, or about 17 percent, to focus on games that have higher profit margins."
"Adobe systems announced Tuesday it would be making 680 employees redundant, in a move which slashes about nine per cent of the firm's global workforce."
"With jobless claims remaining high in the state, Wisconsin’s unemployment fund faces a projected deficit of nearly $2.8 billion by the end of 2011 -- more than twice the amount forecast earlier this year."
"AUSTIN — Texas employers next year will pay more than twice the $1.09 billion in jobless insurance taxes they are paying this year and the tab will go up after that, according to estimates released by the Texas Workforce Commission Tuesday.
Under state law, the state's unemployment trust fund is supposed to stand at 1 percent of taxable wages, or about $860 million. The fund has been depleted in the wake of high jobless claims."
"ALBANY — New York drivers will start paying for new license plates next year — whether they want to or not.
Beginning in April, car and tractor-trailer owners alike will have to shell out $25 for spruced-up license plates, by dictate of state leaders coming up with new ways to wring out revenue as an unprecedented budget shortfall looms."
"SANTA ANA Santa Ana Unified School District's projected $31 million shortfall for the 2010-11 school year could balloon by $33 million if the state budget crisis continues to escalate, district officials said.
The dire prediction came during a budget presentation at the school board meeting late Tuesday."
HSBC facilitates trade settlement using Chinese's Renminbi currency
"JAKARTA, Nov. 11 (Xinhua) -- The Hong Kong Shanghai Banking Corporation (HSBC) launched trade transaction service with Chinese currency Renminbi here, makes Indonesia the sixth country in ASEAN countries enjoying the service, a senior HSBC official said here on Wednesday.
China will continuously play an important role as the main trade partner for Indonesian businessmen. "The Chinese government's policy to allow Renminbi as trade payment currency would improvethe trade between the two countries," Head of Trade and Supply Chain HSBC Indonesia Vincent C. Sugianto said.
Citing the results of its Trade Confidence Index survey for the fourth quarter this year, he said the Indonesian businessmen wish to improve their businesses with their Chinese counterparts.
The commencement of HSBC's trade payment with Chinese Renminbi currency service in Indonesia was marked with a transaction conducted by one of HSBC Indonesia's customers PT Duta Permata Murni with its business counterpart in Shanghai, China recently.
The other ASEAN (Association of Southeast Asian Nations) countries served with HSBC's Renminbi Trade Settlement service are Malaysia, Thailand, Singapore, Vietnam and Brunei Darussalam.
According to Vincent, the Renminbi trade settlement service can only be conducted with Chinese firms authorized to make transactions with their counterparts in ASEAN countries. Those appointed Chinese firms were listed in Chinese government's Mainland Designated Enterprises (MDE) scheme.
According to Vincent, direct transaction using Renminbi with Chinese firms would reduce transaction cost as it would avert the exchange currency risk."
... 9A) More info
"The service is part of China's cautious effort to create a bigger global role for the yuan as the weakened U.S. dollar continues to be questioned as a world reserve currency. China holds the world's largest foreign exchange reserves of more than $2.1 trillion and is also the largest holder of U.S. debt."
"Washington's claims to back a strong dollar are falling on increasingly skeptical ears as many Asian central banks regularly sell their currencies for dollars to prop up the U.S. currency.
Thai Finance Minister Korn Chatikavanij said his country's central bank has bought some $15 billion so far this year and that the persisting weakness of the Chinese yuan will likely require further intervention by Asian central banks.
"We're building up effectively greater level of U.S. dollar reserves," Korn told Dow Jones in an interview. "I'm convinced that in the long term the dollar is more likely than not to decline in value, so we're building up assets that are declining in value over time. That's not healthy."
But Thailand's Mr. Korn said, "There is not much you could do to correct what is reality. The fact is when you've got that much debt ... the only effective way of repaying that debt is basically devaluing your currency.""
"Taipei, Nov. 11, 2009 (CENS)--The Cabinet-level Financial Supervisory Commission (FSC) in Taiwan recently announced to allow domestic bank branches in Hong Kong to extend renminbi-based corporate loans, in addition to handling RMB-based deposits, currency exchanges and remittances."
"There are about 6.1 unemployed workers, on average, competing for each job opening, a Labor Department report shows. That's down slightly from 6.2 last month, the most since the department began tracking job openings nine years ago.
It's a sharp increase from only 1.7 workers per opening when the recession began in December 2007."
"Analysts at Pacific Crest Securities, RBC Capital and Auriga USA LLC are predicting job cuts of as much as 15 percent when Applied releases fourth-quarter earnings today. That would amount to more than 1,500 jobs. The company is reducing its costs to adjust to a smaller industry, said Daniel Berenbaum, an Auriga analyst in New York. "
"“We will not see less than the $1,000 level again,” Faber said at a conference today in London. “Central banks are all the same. They are printers. Gold is maybe cheaper today than in 2001, given the interest rates. You have to own physical gold.”
China will keep buying resources including gold, he said.
“Its demand for commodities will go up and up and up,” he added. “Emerging economies will grow at the fastest pace.”
In contrast, Western countries will be lucky to avoid economic contraction, while the Federal Reserve will maintain interest rates near zero percent, he said."
.........All of this money printing and yet The dollar just doesn't understand what's in its future.
Here's the link for the "Crisis Mode Declared on Deficit" (New York), until the link in the news is fixed,.
Stephen Zarlenga embarked on a long journal of research and analysis. He
argues:
"History shows money is an abstract institution of society and government. As far back as
340 BC Aristotle wrote: 'Money exists not by nature but by law.' He's saying true money
is a fiat (decree) of the law."
"Panics are caused by fractional reserve banking, where banks create money in the form of
bank credits. But these credits aren't the same as money because they depend on the
bank's staying liquid. Paper money in hand is more secure. In a crisis this leads to cash
runs on banks. [The solution was proposed during] the 1930's when Henry Simon created the
100% Reserve Solution. It avoids collapse by changing outstanding bank credit into actual
cash. First, banks (including the Federal Reserve Banks) are required to establish 100%
reserve backing for all deposits. To do this, the US Treasury loans them (at interest)
freshly printed US currency to bring their cash reserves up to 100 %. Treasury paper held
by banks, gets credited against these borrowings; canceling an equal amount. Banks are
then confined to lending existing funds."
"This elegant reform transforms the private bank credit money created out of thin air for
decades, into US legal tender -- real money. All US debt held by the banking system is
canceled out by the banks borrowings from the Treasury. Banks become panic proof, with
cash to pay all claims."
"This reform wouldn't be inflationary or deflationary - it simply makes tangible what had
been thought to be the existing money supply. This reform removes the money issuing power
from private banks and places it in the US Treasury. Its not paper money that's immoral;
its the private issuing of it."
Letting private institutions (banks) create money is like letting the home team referee it's own game and when that happens, the home team is always going to win. One can now see that reflected in what is currently been going on and the score is big banks 1, everyone else 0.
anyone else having trouble with the Crisis mode declared on deficit (New York) link?
An interesting movie has just opened in New York City called "Collapse", staring Michael Ruppert (http://movies.nytimes.com/movie/459796/Collapse/trailers). "A chilling monologue of imminent catastrophe, “Collapse” is not just sobering; it’s a full-on assault. Filmed over two days last March, in the basement of an abandoned meatpacking plant in downtown Los Angeles, it showcases the singular obsession of the author Michael C. Ruppert, a former Los Angeles police officer and investigative journalist who has seen industrial society’s tipping point — in the rearview mirror. Since 2001, Mr. Ruppert has devoted his life, two books and a self-published newsletter to connecting the dots between population, economics and energy, and concluding that the center will not hold....."
This movie sums up everything that Chris Martenson and others have been warning us about. I can't wait for it to open in movie theatres around the country so I and others can see it. Maybe this will wake up the sheeple!
anyone else having trouble with the Crisis mode declared on deficit (New York) link?
Denise
http://www.google.com/hostednews/afp/article/ALeqM5iDnELYrlZn9joITRFQZRRst8TXMg
Brazil seeks cause of massive blackout
By Marc Burleigh (AFP) – 15 hours ago
SAO PAULO — Brazil on Wednesday sought to uncover the cause of a massive and mysterious blackout overnight, amid concerns of energy supply stability for the 2016 Olympic host nation.
The outage, which hit at 10:15 pm Tuesday (0015 GMT Wednesday) and lasted four to six hours, plunged nearly half the country into darkness.
An estimated 50 million people -- more than a quarter of Brazil's 190-million-strong population -- were affected, mainly in the major cities in the southern part of the country, including Sao Paulo and Rio de Janeiro.
Off-duty police were called up as thousands were trapped in immobile elevators and subway trains. Cars were forced to nose through intersections made dangerous by suddenly extinguished traffic lights. Some cafes closed out of fear of a nocturnal crime wave.
Power was mostly returned before dawn, though several areas remained without energy, including nearly a quarter of the state of Minas Gerais, according to Globo television news.
Peace on Terra http://damnthematrix.wordpress.com/ http://groups.yahoo.com/group/roeoz/
An interesting movie has just opened in New York City called "Collapse", staring Michael Ruppert (http://movies.nytimes.com/movie/459796/Collapse/trailers).
<snip>
This movie sums up everything that Chris Martenson and others have been warning us about. I can't wait for it to open in movie theatres around the country so I and others can see it. Maybe this will wake up the sheeple!
It will also be available on video-on-demand on most cable systems very soon. Check the website (www.collapsemovie.com) for info about your local cable system. Can't wait.
Viva -- Sager
"Show some !@#$%^ ADAPTABILITY!!" -- Sergeant Jack Shaftoe, USMC ("Cryptonomicon")
"It's all goin' *down*, man! Martha Stewart's polishing the brass on the Titanic!" -- Tyler Durden
"Have the courage to use your own understanding!' -- Immanuel Kant
"Dreams are the seedbed of the possible." -- William Greider
"One day you finally knew what you had to do, and began, though the voices around you kept shouting their bad advice." -- Mary Oliver
Hey Sager and LPowell23-
If you check out the link Sager gave us, www.collapsemovie.com, and click on "links", the Crash Course is the very first link listed!! How cool is that? Congrats Chris!! Hey Michael Ruppert, are you one of our buds here and we don't even know it?:)
I can't wait to see the film either. Sager, where did you find the info about it coming to pay per view soon? I'd like to ocheck into that.
LPowell23, thanks for tipping us off about this. That's the 1st I'd heard about it. Maybe taking a bite of the reality cookie via the silver screen will be easier for friends and family to digest!
-pinecarr
"Do what you can, with what you have, in the time you have, in the place you are." - Nikosi Johnson
Hey Sager and LPowell23-
If you check out the link Sager gave us, www.collapsemovie.com, and click on "links", the Crash Course is the very first link listed!! How cool is that? Congrats Chris!! Hey Michael Ruppert, are you one of our buds here and we don't even know it?:)
I can't wait to see the film either. Sager, where did you find the info about it coming to pay per view soon? I'd like to ocheck into that.
LPowell23, thanks for tipping us off about this. That's the 1st I'd heard about it. Maybe taking a bite of the reality cookie via the silver screen will be easier for friends and family to digest!
-pinecarr
Account deactivated per user's request.
Here's a new link for the "Crisis mode declared on deficit (New York)
http://www.buffalonews.com/home/story/85...
"Better to reign in hell, than serve in heaven" Milton; Paradise lost