Daily Digest 2/25 - Ray Of Hope For Somalia, Greek Debt Exclusive, China's Steady Stance Towards Europe
- 55 Reasons Why The U.S. Economy Is NOT On The Right Track In 2012
- Greek Debt Exclusive: Default Planners 'Falling Out Over Firewall
- Somalia's Future: A Ray Of Hope
- Mali clashes displace nearly 130,000, UN warns
- The Horrifying Atrocities in the U.N. Report on Syria: A Primer
- China's Steady Stance Toward Europe
- The Economic Outlook for Canada is Dire Says the Bank of Canada
- Stockton, California may halt bond payments
As you read this, there are more than 6 million mortgages in the United States that are overdue.
“Mario then leveraged the amount he’d been given as collateral. Given his position and influence, it wasn’t hard. Without pulling this scam [to avoid the amount appearing on the ECB's market intervention charts or in its books] the Central Bank couldn’t have splashed out the liquidity it did.”
I am told that the operation is continuing – and will be used to fund the next round of voracious private eurobank appetite for liquidity.
Somalia's Future: A Ray Of Hope (jdargis)
The plan’s timing is propitious, as the Shabab militia, which has for the past few years controlled the biggest swathe of Somalia, mainly in the country’s south and centre, has recently lost ground and popularity. Ethiopian and Kenyan forces, with logistical backing from the Americans, French and British, have squeezed it in a pincer movement from the west and south. Moreover, the Shabab failed to feed the people in its zone of influence during last year’s terrible drought. The Shabab’s refusal to allow Western agencies such as Oxfam and the International Committee of the Red Cross into its territory is said to have alienated many of its former supporters.
The Azawad National Liberation Movement (MNLA), which wants independence for the northern region of Mali, took up arms last month and has launched attacks on northern towns and army bases.
It came after many Tuareg fighters returned from Libya, where they had fought alongside Col Muammar Gaddafi's forces.
“Starting in early November 2011, the level of violence between State forces and anti-Government armed groups increased in areas of Homs, Hama, Rif Dimashq and Idlib governorates with a strong presence of such groups. State forces withdrew from and then surrounded many of these areas. Army snipers and Shabbiha gunmen posted at strategic points terrorized the population, targeting and killing small children, women and other unarmed civilians. Fragmentation mortar bombs were also fired into densely populated neighbourhoods.”
China's Steady Stance Toward Europe (David B.)
When there was some disappointment in Europe that China (NYSEArca:FXP) failed to immediately ride to the rescue, it was pointed out that of China’s $3.2 trillion in currency reserves, estimates of perhaps as much as $800 billion of that, or one quarter, are invested in Europe. This apparently included sovereign debt and other instruments. China had no wish to expand this to include what by any measure would have to be considered high risk investments.
The report also confirms the statement made by many investment experts, such as Peter Schiff and here at TDV, that capital flight into government debt is crowding out private investment. This is part of what is prolonging the depression. Instead of financing economic recovery through investment in new ventures, projects and economic reorganization, primary dealers are instead simply financing the growth of government. This only further dampens the private economy and forms the vicious cycle that is sure to keep the economy in a recession.
Stockton faces a budget deficit of about $20 million in its next fiscal year, Deis said. Spending has already been slashed dramatically, and Diaz said further cutbacks alone cannot bridge the gap and that mediation with creditors was essential.
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