Daily Digest

Daily Digest 1/17 - Social Security Fraud, WikiLeaks gets Offshore Banking Secrets, Untapped Reserves for BP

Monday, January 17, 2011, 12:00 PM
  • EMU Policies Are Pushing Southern Europe Into Systemic Political Crisis
  • Accelerating Deposit Flight In Ireland Forces Irish Central Bank To Print Money Independent Of ECB
  • The Fraud at the Heart of Social Security
  • Swiss Whistleblower Plans To Hand Over Offshore Banking Secrets To WikiLeaks
  • Airbus Tops Boeing on Orders, Deliveries Amid Recovery
  • More Strong Bank Results Desired by Investors
  • Rosneft Deal Brings BP Trove of Untapped Reserves

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Economy

EMU Policies Are Pushing Southern Europe Into Systemic Political Crisis (pinecarr)



Greece, Portugal, Spain, and Ireland will stay trapped in structural depression through this year, and well into next, rotating from a liquidity crisis to a chronic political and social crisis that exposes the inability of elected governments to counter 1930s job wastage. Unemployment is 28pc in Andalucia, and 30pc in Cadiz.

Accelerating Deposit Flight In Ireland Forces Irish Central Bank To Print Money Independent Of ECB (pinecarr)



It appears that Irish savers are sufficiently smart to realize that their money is no longer safe in a banking system whose existence is now only backstopped merely from referendum to referendum. As it is very unclear what will happen to the IMF/ECB rescue mechanism once the Irish election is held in March, with a material possibility that the whole plan will be unwound, leaving the country's financial system in the wind, a behind the scenes bank run is accelerating.

  The Fraud at the Heart of Social Security (pinecarr)



There are two frauds at the very heart of the Social Security system, and I am going to describe and source them in detail. After spending a number of hours poring over public data from the Social Security Administration (SSA), The U.S. Treasury and the Congressional Budget Office (CBO), and additional hours searching the Web for other published analyses, I can state with some authority that there are no published analyses or accounts of Social Security which incorporate the actual outlays and receipts from fiscal year 2010 in a context which includes the Social Security Trust Fund.

Swiss Whistleblower Plans To Hand Over Offshore Banking Secrets To WikiLeaks (pinecarr)



He is also – at a time when the activities of banks are a matter of public concern – one of a small band of employees and executives seeking to blow the whistle on what they see as unprofessional, immoral and even potentially criminal activity by powerful international financial institutions. Along with the City of London and Wall Street, Switzerland is a fortress of banking and financial services, but famously secretive and expert in the concealment of wealth from all over the world for tax evasion and other extra-legal purposes.

Airbus Tops Boeing on Orders, Deliveries Amid Recovery



The planemaker expects deliveries to rise to as many as 530 aircraft in 2011, with new orders topping that figure, Enders said. The company aims to secure a higher percentage of orders from North America this year, as carriers including Delta Air Lines Inc. start replacing ageing aircraft and airlines consider the revamped A320, Airbus’s most successful aircraft. Airbus is currently building 36 single-aisle planes each month, with plans to increase the rate to 40 in 2012. Demand is sufficient for Airbus to raise single-aisle production to as many as 44 monthly, and wide-body jets to 10 or 11 a month from nine, Enders said, with a decision expected shortly.

More Strong Bank Results Desired by Investors



As earnings give hopes on a higher run for stocks, the bank shares’ rise pushed sector indexes to confrontational levels. This may mean a halt for shares in the shortened week due to Martin Luther King Jr. Day on Monday when the market is closed. JP Morgan Chase reported stronger-than-analyst-expected profit and revenue. Its CEO said that upon the go signal from regulators by the end of March, the bank could increase its dividend. Thomson Reuters data said financials are projected to have by far the highest growth rate in earnings for the 4th quarter, because of easy year-ago comparisons.

Rosneft Deal Brings BP Trove of Untapped Reserves



BP agreed last week to exchange $7.8 billion of its equity for a 9.5 percent holding in Russia’s largest oil producer. As part of the accord, the two companies will explore a 125,000 square-kilometer (48,000 square-mile) area of the Kara Sea, north from Russia’s largest developed fields in West Siberia.

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7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 2710
Marteen's picture
Marteen
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Joined: Sep 29 2010
Posts: 40
Irish banks printing money

Can you imagine that these Irish are even allowed to do this by the ECB.

This is a very hot topic on many blogging sites in The Netherlands. This printing scares the sh.. out of many commentators as well.

This is very scary. Do these babyboomers really think about the future of their children and grant children.

Marteen

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 376
Re: Daily Digest 1/17 - Social Security Fraud, WikiLeaks ...

i received the following email from a blogger in brazil:

Avaaz has been running a campaign calling on the EPA to suspend neonicotinoid pesticides until and unless they are proved safe for bee populations. It’s been a monstrous campaign, with nearly 1 million signers: http://www.avaaz.org/en/save_the_bees_usa
We heard that this Friday there’s a Global Conference on Risk Assessment for Pollinators, in Florida. The conference is run by SETAC which unsurprisingly is made up of many of the big international chemical producers. The EPA has details of the conference here: http://www.epa.gov/opp00001/ecosystem/pollinator/science.html  But other than that we’ve been unable to confirm whether or not this conference is actually taking place.
We’re now trying to frantically get more information on this. If anyone on the list has any connections at groups working on pesticides, bees, etc…that might be able to confirm whether this meeting is real or not, we’d greatly appreciate their phone number….

ill be back here tomorrow to check if anyone has info...

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Re: Daily Digest 1/17 - Social Security Fraud, WikiLeaks ...

China's electricity consumption up 15% in 2010

Doubling time:  4.67 years....

guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Re: Irish banks printing money

Marteen wrote:

Can you imagine that these Irish are even allowed to do this by the ECB.

This is a very hot topic on many blogging sites in The Netherlands. This printing scares the sh.. out of many commentators as well.

This is very scary. Do these babyboomers really think about the future of their children and grant children.

No kidding, I can see the front page news tomorrow:

Portugal, Italy, Greece, Spain (PIGS): "Print, Print, Print!!"

Samuel

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest 1/17 - Social Security Fraud, WikiLeaks ...

http://www.telegraph.co.uk/finance/economics/8262982/Irish-lenders-besiege-central-bank-for-emergency-loans.html

Irish lenders besiege central bank for emergency loans

Irish banks are running out of collateral they can use to borrow from the European Central Bank, turning instead for emergency support from their own central bank on an unprecedented scale.

Irish lenders besiege central bank for emergency loans
The cement mixer which was driven into the gate of Ireland's Parliament Building, in protest at the bailout of Ireland's banks. Photo: AFP
By Ambrose Evans-Pritchard 7:49PM GMT 16 Jan 2011
 
The latest data shows that Anglo Irish Bank and other lenders had borrowed €51bn (£43bn) from the Irish central bank by the end of December, under an obscure progamme listed in the balance sheet as "other assets".

This comes on top of €132bn in loans from the ECB itself, the figure normally tracked by analysts and itself 24pc of all ECB lending.

"This is a horror story: it shows the cataclysmic condition of the Irish banking system," said Tim Congdon from International Monetary Research. "The banks have borrowed €183bn in total, or 110pc of Irish GDP. They have burned through all their capital and a lot of their deposits as well. This is going to end up on the national debt".

The actions of the Irish central bank are authorised by Frankfurt, but fall into a grey area of monetary policy since they appear to involve creation of money outside the normal control of the ECB's governing council.

The use of Ireland's emergency liquidity assistance programme (ELA) raises further questions since the quality of collateral is unacceptable for normal ECB operations. The volume of borrowing has begun to level off after a surge in November.

Separately, the Spanish media reported that a mission from the International Monetary Fund was arriving in Spain this week to analyse the country's debt sustainability and may discuss a `flexible credit line', akin to precautionary overdraft facilities offered to Mexico and Poland.

The IMF's flexible credits are designed to "encourage countries to ask for assistance before they face a full blown crisis". They are not the same as bail-out, and are only avaible to "very strong perfomers" facing "tough times" because of temporary funding pressures. They entail no stigma, and do not come with strings attached. 

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