Daily Digest

Daily Digest 8/11 - U.S. Bankrupt, $26 billion for states, China Auto Sales Up, 99er’s Stories

Wednesday, August 11, 2010, 10:43 AM
  • U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff
  • House Passes $26 Billion for Schools and States
  • Red Light Camera Ruling Could Be Costly (Orlando)
  • Daley Defends CPS Decision To Deplete A Reserve Fund (Chicago)
  • China Auto Sales May Rise to 16 Million, Group Says
  • Pentagon To Cut Thousands Of Jobs, Defense Secretary Says
  • Indianapolis Faces $50M Budget Deficit
  • The '99ers' Share Their Stories
  • Long Term Joblessness Takes Emotional, Spiritual Toll on '99ers'
  • Economic Collapse 2005 Sixth Fastest Growing City in the USA Bend Oregon
  • One In Six People In Japan Are Now 'Poor'
  • East of San Francisco, Jobless Rates Go Up To 20%, Home Prices Are Down As Much As 75%
  • Russia Wheat Ban May Slash Food Aid To Millions, Says WFP

Crash Course DVDThe 3-disc Special Edition DVD, now $24.99 in our store (NTSC or PAL)

Economy

U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff (cmartenson)

Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

House Passes $26 Billion for Schools and States

The House interrupted its summer recess on Tuesday to approve $26 billion in aid to school districts and states to prevent large-scale layoffs of teachers and public employees and to engage in another partisan fight over policy priorities.

Democrats noted that the $26 billion costs of the measure would not be added to the deficit, with its costs offset by closing a tax loophole on companies that do businesses overseas as well as by making future cuts in food stamp spending.

Red Light Camera Ruling Could Be Costly (Orlando)

Red light cameras installed at a number of Orlando intersections now are getting flak from an Orange County judge who ruled on Aug. 9 that the use of the cameras was illegal. If Lauten's ruling is upheld, the city of Orlando may have to pay back any money generated from tickets related to the use of the cameras, a figure exceeding $6 million in fines.

Daley Defends CPS Decision To Deplete A Reserve Fund (Chicago)

Mayor Daley on Tuesday defended the decision by his handpicked Chicago Public Schools team to deplete a reserve fund piggybank, jeopardizing the system’s bond rating. With state funding lagging and the Chicago Teachers Union refusing to forfeit a four percent pay raise, Daley said Schools CEO Ron Huberman had no choice but to take the reserve fund down to zero to erase a $370 million budget shortfall.

China Auto Sales May Rise to 16 Million, Group Says

Vehicle sales will be higher than previously expected judging by deliveries in the first half of the year, Beijing- based Dong Yang, vice president of the China Association of Automobile Manufacturers, said in a phone interview today. The State Information Center also said in April auto sales may rise 17 percent to 16 million from a record 13.6 million last year.

Even so, sales growth is slowing from 2009, when government incentives helped demand surge 46 percent, making China the world’s biggest automobile market.

    Crash Course DVDThe 3-disc Special Edition DVD, now $24.99 in our store (NTSC or PAL)

Pentagon To Cut Thousands Of Jobs, Defense Secretary Says

Gates said he will recommend that President Obama dismantle the U.S. Joint Forces Command, which employs about 2,800 military and civilian personnel as well as 3,300 contractors, most of them in southeastern Virginia. He also said he will terminate two other Pentagon agencies, impose a 10 percent cut in intelligence advisory contracts and slim down what he called a "top-heavy hierarchy" by thinning the ranks of admirals and generals by at least 50 positions.

Indianapolis Faces $50M Budget Deficit

Indianapolis has another budget hurdle to climb. Last year it was hit hard by property tax caps. This year it's the unemployment rate. In June it was 10.2% in Marion County. With fewer people working, fewer people are paying income taxes.

Mayor Greg Ballard initially expected the city to collect $20 to $25 million less in income tax revenue. He now says that figure will be closer to $50 million. "This is serious stuff, but we're in an economic downturn. It's the worst in 80 years and it will require tough calls," said the mayor

The '99ers' Share Their Stories (PBS Newshour)

Editor's Note: Last month, Congress extended federal unemployment benefits for people who had been out of work up to 99 weeks. But for the millions of Americans who have been jobless longer than that -- the "99ers" -- there will be no more checks coming. Tonight on the NewsHour, Paul Solman talks to 99ers, and to economists who disagree over whether the government should extend their unemployment benefits even longer.

In reporting this story, we received letters from dozens of 99ers talking about their experiences. We've posted nine of them, anonymously, below.

Long Term Joblessness Takes Emotional, Spiritual Toll on '99ers' (Video)

Economic Collapse 2005 Sixth Fastest Growing City in the USA Bend Oregon (Video)

One In Six People In Japan Are Now 'Poor'

While Tokyo, and Japan, may seem like the land of plenty, it is also home to millions living below the poverty line. AFP reports that the number is approaching an astonishing one in six, or more than 21 million people in a country of 128 million. These people earn less than half the median household income, or less than US$1,830 per month per four-person family.

The worst affected are single women, the unemployed, and the elderly. Indeed, there has been an increase in crime by pensioners over recent years, possibly because they know that in prison, they will be taken care of. When Japan went through an economic transformation from the 1960s until the 1990s, life-time employment was commonplace. But after two decades of relative stagnation, the appeal of a job for life among a young generation that already has it all, and the desire of companies to offer it, has been lost.

East of San Francisco, Jobless Rates Go Up To 20%, Home Prices Are Down As Much As 75%.

In Stockton, which had one of the highest foreclosure rates in the nation, the median home price of $100,500 is down from $397,000 at the height of the boom -- a stunning 75% drop.

Weston Ranch, the Stockton community where White lost his home, was one of the epicenters of the California housing crash. Median home prices there dropped to $110,000 from $446,000 in a span of three years. Now foreclosures plague nearly every block. In April 2008, there were 1,003 notices of default served in the city, up two-thirds from a year earlier, according to ForeclosureRadar.com.

Environment

Russia Wheat Ban May Slash Food Aid To Millions, Says WFP

The world's largest humanitarian food agency told Dow Jones Newswires it is seeking an exemption to Russia's ban on grain exports due to fears that surging prices may cut the amount of grain it can procure elsewhere...The WFP, the food aid branch of the United Nations, provided food for more than 100 million people in 73 countries during 2009, including those facing humanitarian crisis and conflicts. Over a third of the 2.6 million metric tons of food the WFP purchased in 2009 was wheat, the organization said, meaning any shortage of supply could affect millions.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

22 Comments

saxplayer00o1's picture
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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

"BERLIN (Dow Jones)--The euro rescue fund is insufficient to safeguard stability of the euro zone and greater effort is needed to tackle foreign trade imbalances, a leading German economic think tank said Wednesday."The euro rescue fund has saved the European Monetary Union from a breakup in the acute crisis," the Duesseldorf-based research institute IMK said. "But as long as the core, structural problems of the monetary union don't get solved, the stability remains precarious: Weak member states such as Greece have little chance to generate high growth under the present conditions and as a result to reduce their sovereign debt."Strict austerity in Greece could increase the country's problems because it will dampen the tax revenue needed for consolidation, it warned.Once the rescue measures expire and if the euro-zone's fundamentals haven't improved, there "is a high risk in the medium term for such countries to become a target of speculative attacks.""

"Japan's debt hit a record high of $10.54 trillion at the end of June amid massive government bond issuance and declining tax revenues, a data by the Finance Ministry has shown.It is the first time that the debt balance, including government bonds and financing bills, has exceeded $10.49 tril.Per-capita debt came to around $80,000 based on Japan's estimated population of about 127.42 million as of July 1."

"Government statisticians have put a number on Californians' paycheck pain last year: about $40 billion.The federal Bureau of Economic Analysis said personal incomes of Golden State workers fell by that amount in 2009 compared with the previous year -- the state's first year-to-year decline since World War II. In the Sacramento region, income was off about $800 million.The bureau said 2009 income statewide totaled $1.56 trillion, down about 2.5% from $1.6 trillion in 2008. The 2009 level also came in just under the 2007 total.California's decline was one- third more than the national 1.8% personal income drop, reflecting the relative intensity of the state's recession."

...........................3A) California close to 'cash crisis' says controller

"President Obama approved a final spurt of spending Tuesday to shore up the sluggish recovery, signing into law a $26 billion plan to save the jobs of thousands of teachers and other government workers. The measure brings total direct federal spending on the economy to nearly $1.2 trillion since the nation descended into recession in late 2007."

"The package approved Tuesday represents less than a quarter of the $116 billion shortfall that states face over the next two years, according to the National Governors Association. "

"SUMMARY: The city of Antioch in California is considering filing for bankruptcy protection. Already another California city, Vallejo has filed for bankruptcy and now Antioch city officials are bracing themselves to be the next on the list. With weak revenue earnings and low property taxes, the prospect of bankruptcy seems increasingly likely.

The city has undertaken various measures to reduce expenditure and costs from spending cuts to layoffs to furloughs but they have proven to be inadequate. In fact, Orange County treasurer, Chriss Street expects more local governments in California to have similar experiences. A case in point is Sacramento County where one of its top finance officers predicted a worse-than-expected shortfall of $181 million for the county, which could trigger more than 1,000 layoffs among the county’s workers.

Please see full article below for more information."

"All of this housing trouble creates a vicious cycle for the economy, jobs and the fragile banking system, Suttmeier tells Aaron in this clip, predicing another 30% drop in home prices by 2014, as measured by the Case-Shiller Index."

"Aug. 11 (Bloomberg) -- The trade deficit in the U.S. unexpectedly widened in June to the highest level since October 2008 as consumer goods imports rose to a record and exports declined.

The gap expanded $7.9 billion, the most since record-keeping began in 1992, to $49.9 billion in June, Commerce Department figures showed today in Washington. A $42.1 billion deficit was projected by economists, according to the median forecast in a Bloomberg News survey. Imports climbed 3 percent, while exports dropped 1.3 percent, the most since April 2009."

"Syracuse, NY -- Julie Squadrito has improvised since New York jacked up the cigarette tax from $2.75 to a nation-leading $4.35 per pack July 1.

Squadrito, of Lyncourt, pools her money with co-workers at a communications company in downtown Syracuse, where she is a manager. Every other week, she said, one of them drives seven miles to the Onondaga Nation Smoke Shop, which sells untaxed cigarettes."

"The New York Association of Convenience Stores said field reports show its members lost an average of 25 to 35 percent of their cigarette business in July, with those closest to state borders and tribal lands losing up to 45 percent of their business, said President Jim Calvin. It has also affected the number of customers going to convenience stores in general, causing a loss in non-cigarette sales, he said"
"A pack of Marlboros hovered around $6 or $7 a pack at Lucky 7 before the tax hike. Now, a pack costs $9.60. The store’s cheapest, Grand Prix, costs $7.95 a pack and its most expensive, Carlton, checks in at $11.05 a pack.

A pack of Senecas? $3.50 at the Onondaga Nation Smoke Shop. That’s $2.52 less than the tax alone on the average pack of non-Nation cigarettes. A pack of Marlboro’s costs $6.50 there."

 

  • Other news and headlines:

 

China Output Growth Weakens; Inflation Accelerates and China Loan Growth Slows; 2010 Target Suggests Further Fall

US May Suffer Japan-Style Deflation, Schroder Says

ECB gold reserves hit € 352 billion

Fed Reverses Exit Plans, Sets $2 Trillion Floor for Holdings

UK home prices slip as recovery looks uncertain

Russian fires, heat estimated to kill 15000, cost economy $15B

Ukraine's foreign debt reaches critical $40 billion

Special Report: Inside Greece's War on Tax Evaders

Protesters march on Watsonville bank, demand repayment for indiscretions

Bankruptcy could be option for Stuyvesant Town

S&P Downgrades $4.61B Of Trust-Preferred CDOs

Lawrence Fire Depending On Others For Help

Millions face 25% cut in pensions as inflation rules for final salary schemes are changed (UK)

Securing Stability: $1 Trillion at a Time (McAlvany audio......great info in this one)

Record low mortgage rates do little for demand

Federal Salaries Soaring Above Private Sector

Governor decries fed rules on school money (Texas)

Jailed in Dubai, Accused Wait Long After Good Times Have Gone (Info on "Debtors’ Prisons")

Will the Pension Time Bomb Set Off a Crime Explosion?

scrappy coco's picture
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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Gerald Celente Video from yesterday very powerful

 

http://vinceseconomicblog.wordpress.com/2010/08/10/gerald-celente-on-the...

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

http://www.bloomberg.com/news/2010-08-11/-black-swan-author-taleb-says-he-bets-on-collapse-of-government-bonds.html

Quote:

Nassim Nicholas Taleb, who warned that unforeseen events can roil markets in “The Black Swan,” said he is “betting on the collapse of government bonds” and that investors should avoid stocks.

“I’m very pessimistic,” he said at the Discovery Invest Leadership Summit in Johannesburg today. “By staying in cash or hedging against inflation, you won’t regret it in two years.”

Treasuries have rallied amid speculation the global economic recovery is faltering, driving yields on two-year notes to a record low of 0.4892 percent today. The Federal Reserve yesterday reversed plans to exit from monetary stimulus and decided to keep its bond holdings level to support an economic recovery it described as weaker than anticipated. The Standard & Poor’s 500 Index retreated 16 percent between April 23 and July 2, the biggest slump during the bull market.

Doug

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

"26 Billion for Schools and States."

Amazing how the media can spin a bill that gives well over half ( 16 billion out of the 26) to bail out medicaid on the State level ( a federally mandated program ) as a bill for "schools" instead of "Bill to stanch bleeding of hospitals and doctors".

Nah....there's no bias in the media, is there ?

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...
TNdancer wrote:

"26 Billion for Schools and States."

Amazing how the media can spin a bill that gives well over half ( 16 billion out of the 26) to bail out medicaid on the State level ( a federally mandated program ) as a bill for "schools" instead of "Bill to stanch bleeding of hospitals and doctors".

Good catch.  Let's compare that to the recent $33 billion extra-appropriation for the Afghanistan war to keep it limping along...yep, funding for "schools and states" is less of a priority to Congress than a war for which no goal exists.

It's all about priorities and its pretty clear that the US favors war spending over domestic spending.

Having watched the 99ers clip I can only imagine that the sociological stress and strain is growing by the day.  Peggy Noonan is too partisan for my taste (I am strictly non-partisan), but perhaps she was onto something here:

America Is at Risk of Boiling Over

(...)

Optimists think that if we manage to turn a few things around, their kids may have it . . . almost as good. The country they inherit may be . . . almost as good. And it's kind of a shock to think like this; pessimism isn't in our DNA. But it isn't pessimism, really, it's a kind of tough knowingness, combined, in most cases, with a daily, personal commitment to keep plugging.

 

But do our political leaders have any sense of what people are feeling deep down? They don't act as if they do. I think their detachment from how normal people think is more dangerous and disturbing than it has been in the past. I started noticing in the 1980s the growing gulf between the country's thought leaders, as they're called—the political and media class, the universities—and those living what for lack of a better word we'll call normal lives on the ground in America. The two groups were agitated by different things, concerned about different things, had different focuses, different world views.

But I've never seen the gap wider than it is now. I think it is a chasm. In Washington they don't seem to be looking around and thinking, Hmmm, this nation is in trouble, it needs help. They're thinking something else. I'm not sure they understand the American Dream itself needs a boost, needs encouragement and protection. They don't seem to know or have a sense of the mood of the country.

And so they make their moves, manipulate this issue and that, and keep things at a high boil. And this at a time when people are already in about as much hot water as they can take.

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

I'm not a big fan of Noonan either, but she does seem to have this right.  The politicians and media seem to respond to every new bit of info by automatically reverting to political and ideological positions they've become accustomed to over the decades.  Even the mavericks like Paul and Sanders can't seem to think beyond their fixed ideologies.

Doug

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

  All of todays news   and still people have their head in the sand !   How much worse will it get before they listen  "get it '

 FM

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...
cmartenson wrote:
TNdancer wrote:

"26 Billion for Schools and States."

Amazing how the media can spin a bill that gives well over half ( 16 billion out of the 26) to bail out medicaid on the State level ( a federally mandated program ) as a bill for "schools" instead of "Bill to stanch bleeding of hospitals and doctors".

Good catch.  Let's compare that to the recent $33 billion extra-appropriation for the Afghanistan war to keep it limping along...yep, funding for "schools and states" is less of a priority to Congress than a war for which no goal exists.

It's all about priorities and its pretty clear that the US favors war spending over domestic spending.

Having watched the 99ers clip I can only imagine that the sociological stress and strain is growing by the day.  Peggy Noonan is too partisan for my taste (I am strictly non-partisan), but perhaps she was onto something here:

America Is at Risk of Boiling Over

(...)

Optimists think that if we manage to turn a few things around, their kids may have it . . . almost as good. The country they inherit may be . . . almost as good. And it's kind of a shock to think like this; pessimism isn't in our DNA. But it isn't pessimism, really, it's a kind of tough knowingness, combined, in most cases, with a daily, personal commitment to keep plugging.

 

But do our political leaders have any sense of what people are feeling deep down? They don't act as if they do. I think their detachment from how normal people think is more dangerous and disturbing than it has been in the past. I started noticing in the 1980s the growing gulf between the country's thought leaders, as they're called—the political and media class, the universities—and those living what for lack of a better word we'll call normal lives on the ground in America. The two groups were agitated by different things, concerned about different things, had different focuses, different world views.

But I've never seen the gap wider than it is now. I think it is a chasm. In Washington they don't seem to be looking around and thinking, Hmmm, this nation is in trouble, it needs help. They're thinking something else. I'm not sure they understand the American Dream itself needs a boost, needs encouragement and protection. They don't seem to know or have a sense of the mood of the country.

And so they make their moves, manipulate this issue and that, and keep things at a high boil. And this at a time when people are already in about as much hot water as they can take.

We need to stop calling these people leaders. They are nothing of the kind and I quit following them while I was in high school. In our own language we capitulate to them by using that term. It might be time to call them employees and think abOut their compensation packages, their votes, their job status and whether they should be fired. How about a job evaluation? Calling them leaders makes us lemmings.

I don't think there are too many lemmings on this site.

V

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Many people (Strauss + Howe, Prechter, etc.) have indicated that we are in the midst of a declining social mood, and have further elaborated on what that can entail. I recently had the opportunity to volunteer with a number of high school and college students for a summer theater production. In summer, 2009, they hardly discussed the economy or jobs. This summer, things were noticeably different. Seniors in high school can't find summer work. Freshmen in college can't find internships and are assuming that the job market will still be awful even after they get a degree.

What struck me about all of this is that the up and coming generation no longer even has quite the same hopes that even those in their mid 20's did when they were still in school. Today's young adults are not even shooting for the same targets that many in their position used to just a few years ago. The lowered expectations virtually guarantee a declining economy and are symptomatic of the overall mood. An economic depression is bad enough, but my greatest concern remains political (or military) upheaval. It's happened before and it can happen again. Remember we "can't" end the wars, because of all the additional unemployment that would come...Not just the soldiers, but the entire supply chain that helps America be far and away the most powerful military force on the earth.

Ironically, I think that the military might be well equipped to assist at home in the many ways that we could use the help. But right now, it seems doubtful that will come to pass.

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

re: China Auto Sales May Rise to 16 Million, Group Says

According to the strategic plan for highway development in 2005,by 2020, China will establish a national highway network, totaling100,000 kilometers, about the length in the United States today.

http://www.chinacartimes.com/2010/01/16/china-now-has-65000km-of-highway/

whats going on here? did the russians sell the chinese abiotic oil, or what?

 

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

An article in the paper this morning had me laughing out load about this.  There was a big argument from republicans and democrats about this adding to the deficit.  The democrats say... rest assured, this is paid for by cuts and or additional taxes.  One of the cuts is for food stamps, which of course has other groups crying about cutting off the poor.  Now, before the article is even finished, the democrat spokesman says... :"sssshhhh, don't worry, this cut isn't going to happen for 4 years and we will find a way to reverse it so it doesn't ever happen."  Unreal.

 

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

"WASHINGTON (MarketWatch) -- The U.S. government ran a budget deficit of $165 billion in July, the Treasury Department reported Wednesday, marking the 22nd consecutive month of red ink. Outlays totaled $321 billion in the month while receipts were $156 billion. July is usually a deficit month since there are no tax due dates."

"Assistance would go to those not working enough to pay mortgage

WASHINGTON (MarketWatch) -- The White House on Wednesday said it would spend up to an additional $3 billion to help distressed homeowners in the states with the highest unemployment rates to pay their mortgages.

Eligible homeowners could receive no-interest loans up to $50,000 as long as 24 months.

The new program is meant to prevent further home foreclosures in 17 states plus the District of Columbia. Most of those states have experienced a rash of foreclosures that have depressed the housing market and local economy. "

"The federal Housing Finance Agency would distribute $2 billion and the Housing and Urban Development Department would make $1 billion available.

The money would be given to homeowners who lost their jobs or cannot find enough work and are in danger of losing their homes. People whose medical conditions have also reduced their ability to work would also qualify."

"WASHINGTON (MarketWatch) -- Growth in the U.S. economy from April through June was probably much softer than first estimated by the government, private economists said Wednesday after updated trade figures for June were published showing higher imports.

"The markets might face their biggest downside economic surprise of this recent growth slowdown yet in the form of a downward second quarter gross domestic product revision, which today's U.S. trade deficit figures suggest will be a whopper," wrote analysts at Action Economics.

Instead of growing at a 2.4% annualized pace in the second quarter, real gross domestic product will likely be cut almost in half to a 1.3% annual rate, according to economists surveyed by MarketWatch."

 

.......................Probably our stimulus money at work:

school

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

National Inflation

http://vinceseconomicblog.wordpress.com/2010/08/11/mainstream-media-hija...

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

I have been talking about a very bad depression coming, for years, to my family and friends.  They still do not see it and they think things go in cycles and things will get better.  I talk to anyone I encounter about this subject and I get the same answers from them all. 

 

Will they wake up before its to late?  Will they ever see what is happening?  Some of them still think Obama is working to help us.  They all refuse to watch the Crash Course, they all refuse to read articles that I read and email them, they still refuse to watch any video that I find.  Should I just give up on them?  Or should I continue to email them articles and videos everyday like I have been doing for the past 2 years? 

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Be careful how much you try to spoon feed them.

At some point they will remember that you were the one who knew it was coming and prepared. At that point you will have to politely tell them good luck. You will not have stored on their behalf while they told you to mind your own business or you were not being rational. It is when they refuse to be rejected that things start to get ugly and confrontational.

If you have reached out and have been rejected, do not advertise your intent or preperations any more than that.

I think it is time to be quietly hardening your facility/ home/ farm, while working more than ever with those who are already helping themselves and preparing. Building a local and resilient community as it were.

If you have the space and supplies, you can order them to work to provide shelter, food etc for themselves and in essence give them the direction needed to begin rebuilding. Or you may have to fight them to keep what you have.

My .02

Jager

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Ooooooh, so Gates is gonna cut 6150 or so positions!  So let's see...  they're almost all domestic positions, if I read the article correctly, meaning that "defense" will be weakened while "threat of aggression" will be maintained at current levels.

So now let's just say that the marginal cost of maintaining an average domestic position costs, oh -- let's be generous -- a quarter million dollars?  You know, government waste and all that.  So were gonna save, what?  about $1.5 billion?  Out of a trillion dollar bucket?  (I won't call it a budget cuz the DoD does everything possible to keep its "budget" at a minimum.)  At that rate, it would take 120 years of such "savings" just to cover what we coughed up to AIG / GoldmanSachs!

What a farce!

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Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Chris Martenson wrote:

"Having watched the 99ers clip I can only imagine that the sociological stress and strain is growing by the day."

Now to that mix, we can add unemployed renters vs. unemployed homeowners.

Obama Administration to Provide $3 Billion in Housing Aid

The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners.

(. . .)

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

http://www.cnbc.com/id/38658978/comid/2#comments_top

Notwithstanding that they true intended beneficiary is the banks, how will the unemployed renters who have been evicted - and perhaps were responsible enough to realize they couldn't really afford a mortgage back when their less responsible friends were buying houses they couldn't afford -react when they find out that their fellow unemployed who happen to own a home, are going to get to stay in their home courtesy of the taxpayer's money. Unbelievable!

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Helix
Status: Bronze Member (Offline)
Joined: Sep 20 2008
Posts: 79
Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

Re "whats going on here? did the russians sell the chinese abiotic oil, or what?"

Nah!  China's just going to buy all the oil that remains -- about 20 or so years' worth...

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scrappy coco
Status: Member (Offline)
Joined: Aug 3 2010
Posts: 12
Re: Daily Digest 8/11 - U.S. Bankrupt, $26 billion for ...

I dont tell anyone besides my family about my food cache, but I talk to all my neighbors about preparing and they all think I am crazy.  I grew up in NYC a now live on a farm in the most rural part of NJ 70 miles outside NYC.  My neighbors, who are farmers, dont seem to worry about anything at all .  They all tell me not to think this way nothing is going to happen. My neighbors who are not farmers all think the same way and think nothing is going to go real bad.  They all have the metality that this is America and a collpase could never happen here.  It sucks being the only one around besides one friend who thinks like this and is preparing. 

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JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Goldman Sachs Is The New GoldBug in Town

For all of us who are in the bullish gold camp, don't look now but the guy standing next to you is Goldman Sachs ! That's right, if you bought gold to get your nest egg away from entities like GS, well, the devil just jumped on your bandwagon. 

Goldman Sachs Goes Goo-Goo About Gold (ZH)

Goldman dedicates 9 pages to a regime change in which it goes openly bullish on gold. The report is attached, which we present without commentary but as always, if there is one flashing red light saying the peak price for any asset has been hit, it is a Strong Buy signal by Goldman. The report will likely result in a brief pop in spot over the next 24 hours as the idiot money rushes into the latest Goldman trap. Alas, it also means that GS is now offloading. Be very wary of market dynamics over the next month.

"Please return to your seats, fasten your seat belts, and stick your head between your legs, as the pilot sees what looks like turbulence in your gold portfolio dead ahead". 

The question is, how many of us will be left holding the bag, or is it a Golden Sach?

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Re: Goldman Sachs Is The New GoldBug in Town
JAG wrote:

For all of us who are in the bullish gold camp, don't look now but the guy standing next to you is Goldman Sachs ! That's right, if you bought gold to get your nest egg away from entities like GS, well, the devil just jumped on your bandwagon. 

Goldman Sachs Goes Goo-Goo About Gold (ZH)

Goldman dedicates 9 pages to a regime change in which it goes openly bullish on gold. The report is attached, which we present without commentary but as always, if there is one flashing red light saying the peak price for any asset has been hit, it is a Strong Buy signal by Goldman. The report will likely result in a brief pop in spot over the next 24 hours as the idiot money rushes into the latest Goldman trap. Alas, it also means that GS is now offloading. Be very wary of market dynamics over the next month.

"Please return to your seats, fasten your seat belts, and stick your head between your legs, as the pilot sees what looks like turbulence in your gold portfolio dead ahead". 

The question is, how many of us will be left holding the bag, or is it a Golden Sach?

I've felt all along that gold will get a good kick in the pants in August to shake out weak hands ....  before a big run up.  This statement by forked tongue Goldman certainly seems to set the stage for this scenario.  We'll see.  

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pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
BP's Return To Libya Decades After Gaddafi's Revolution

Here's another recent article on BP's plans to drill for oil, on and off-shore, in Libya, at:

http://www.zerohedge.com/article/guest-post-uncertain-homecoming-bp%E2%80%99s-return-libya-decades-after-gaddafi%E2%80%99s-revolution

After nearly 40 years, BP is returning to Libya amid widespread controversy about an alleged link to the Lockerbie bomber’s release and fears about a potential oil disaster in the Mediterranean Sea.

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