Daily Digest

Daily Digest - June 25

Friday, June 25, 2010, 9:52 AM
  • Jobs Or Bust!
  • What's In Your Wallet?
  • Cameron's Austerity Sets Benchmark for G-20 Summit
  • Germany Fires Pre-G20 Broadside At U.S. Criticism
  • U.S. Economy Grew 2.7% in First Quarter, Less Than Forecast
  • Geithner: G20 To Focus On Growth, Confidence
  • Consumer Sentiment Highest Since January 2008 
  • BP Market Losses Hit $100 Billion On Spill Cost Fears 
  • Chinese Currency Hits New High Ahead of Meeting

Economy

Jobs Or Bust! (Ilene)

While Congress plays ”chicken” with the economy, all this other doom and gloom can be very distracting but we’ve got trouble my friends, trouble right here! That’s trouble with a “T” which is right before “U” and that stands for UNEMPLOYMENT. We’ve discussed the mess the states are in and the Washington Post’s Ezra Klien points out that it’s UNEMPLOYMENT, not budget practices, that is to blame for current state deficits.

What's In Your Wallet? (Davos the Narcissist)

This week it was announced that the Congressional Budget for Fiscal 2011 won't be published. We have 13 trillion in public debt, 19 trillion if you count the GSE debt (and you should), another 109 trillion in off balance sheet liabilities. With 128 trillion dollars of debt and an income of 2 trillion we can forget about anything getting better anytime soon.

Cameron's Austerity Sets Benchmark for G-20 Summit (cmartenson)

European policy makers fear failure to patch up public finances now risks reviving a bond market selloff that required a bailout for Greece last month, while President Barack Obama says deficit reduction could hurt economic growth and employment. The U.K. presents a test case for G-20 politicians as they argue how quickly to act.

Germany Fires Pre-G20 Broadside At U.S. Criticism (cmartenson)

Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble chose English-language papers for the broadside against US fears that Germany's savings programme could throttle a stuttering global recovery.

"Governments should not become addicted to borrowing as a quick fix to stimulate demand," wrote Schaeuble in the Financial Times.

U.S. Economy Grew 2.7% in First Quarter, Less Than Forecast (cmartenson)

The revised figures showed an economy that was more dependent on inventory restocking and less driven by demand from consumers and businesses before the European debt crisis intensified. Unemployment, combined with the turmoil in financial markets and a lack of inflation, are among reasons Federal Reserve policy makers this week reiterated a pledge to keep interest rates low.

Geithner: G20 To Focus On Growth, Confidence (cmartenson)

Geithner, who will participate in the G20 summit this weekend in Toronto, said member countries all agree on the need to restore fiscal responsibility and bring down deficits to sustainable levels, but said the bulk of that should come after growth resumes.

Consumer Sentiment Highest Since January 2008 (cmartenson)

Reports of job losses fell by half since last June, from 65 percent of respondents to 29 percent, the survey showed.

"The June 2010 survey recorded the most favorable news heard by consumers about jobs in five years," Richard Curtin, director of the surveys, said in a statement.

BP Market Losses Hit $100 Billion On Spill Cost Fears (cmartenson)

"A heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near-term credit event around BP," they said in a note.

"With debt expensive and asset sales taking time, we consider that equity-linked financing -- perhaps backed by Sovereign Wealth -- could prove the attractive short-term solution," they added.

Chinese Currency Hits New High Ahead of Meeting (jdargis)

The Chinese central bank set its key daily reference rate for the renminbi at 6.7896 per dollar on the fifth trading day since Beijing pledged greater currency flexibility last weekend. The renminbi ended the day at almost exactly that level, having made a total gain against the dollar of 0.5 percent in the past week.

Please send article submissions to: [email protected]

30 Comments

saxplayer00o1's picture
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Re: Daily Digest - June 25

"LONDON—The cost of insuring Greek sovereign debt against default rose further in early trading Friday to hit a new record, amid growing market anxiety that Greece may suffer from a fall in tourist arrivals.

Greece's five-year sovereign credit default swaps were quoted at 11.31 percentage points compared with Thursday's closing level of 11.27 percentage points, according to data provider CMA DataVision. That means the annual cost of insuring $10 million of Greek government debt for five years is $1.131 million. CMA said that this price implied a 69% probability of default over the next five years.

Since Wednesday, Greece's five-year CDS has widened 1.97 percentage points making the country the second-riskiest sovereign borrower in the world, behind Venezuela, according to CMA figures. "

"U.S. corporate bond sales tumbled from $140.1 billion in March, the most since January 2009, to $32.9 billion last month amid concern among investors that the sovereign debt crisis in Europe would stifle global economic growth."

"LONDON (MarketWatch) -- Oil company BP /quotes/comstock/23s!a:bp. (UK:BP. 301.70, -23.55, -7.24%) /quotes/comstock/13*!bp/quotes/nls/bp (BP 28.74, -0.93, -3.13%) said Friday that the total cost of its response to the Gulf of Mexico oil spill has now reached $2.35 billion. BP said around 74,000 claims have been filed against the company following the spill, of which 39,000 have been paid at a cost of $126 million."

................................3A) BP Plunges to 14-Year Low on Spill Costs, Hurricane Concerns

.................................3B) BP-Linked Bond Yields Spike

"June 25 (Bloomberg) -- Belgian, Italian and Spanish 10-year bonds declined, sending their yield differences with benchmark German bunds wider, on concern the region’s debt crisis is deepening as the economic recovery sputters.

The bonds also fell amid speculation banks are seeking to sell the securities to pay back money borrowed in the European Central Bank’s long-term refinancing operation that expires July 1. Germany’s 10-year bond yield stayed near the lowest in more than a week before a report due June 29 that economists say will show sentiment in the 16 euro nations fell this month.

“This is a supply shock,” said Kornelius Purps, a fixed- income strategist at UniCredit SPA in Munich. “Banks are checking out the market and I anticipate this will intensify next week.”

The 10-year bund yield fell one basis point to 2.60 percent as of 9:50 a.m. in London. The yield reached 2.59 percent yesterday, the lowest since June 15. The 3 percent security maturing July 2020 gained 0.04, or 40 euro cents per 1,000-euro ($1,235) face amount, to 103.45.

The Belgian 10-year bond yield rose eight basis points to 3.6 percent, the equivalent-maturity Italian debt security gained four basis points to 4.09 percent and Spanish 10-year yields advanced four basis points to 4.53 percent."

"NEW YORK (Reuters) - The operator of a South Carolina toll highway sought bankruptcy protection on Thursday in a rare filing by a municipal entity under Chapter 9 of the U.S. Bankruptcy Code.

Connector 2000 Association Inc filed for protection with the U.S. bankruptcy court in Spartanburg, South Carolina, with more than $200 million of bonds outstanding, court records showed.

The nonprofit had been set up in 1996 by the South Carolina Department of Transportation to operate the 16 mile "Southern Connector" toll road in Greenville County, and build an extension to South Carolina Highway 153, records showed."

"Chapter 9 is a rarely used section of federal bankruptcy law meant to shelter more than 39,000 U.S. counties, cities and towns, and other government entities."

"WASHINGTON — The House on Thursday approved a six-month plan to prevent a steep cut in doctors’ fees paid by Medicare, agreeing to a short-term solution that Speaker Nancy Pelosi called “totally inadequate” but said the House had decided to adopt after concluding that the Senate was hopelessly gridlocked and could do no better. "

"The $6.4 billion measure reverses a 21 percent cut in physician payments that had raised the possibility that some doctors might begin to turn away those covered by Medicare. The measure is retroactive to June 1. "

.............................6A) Unemployment benefit extension falls short in Senate and Unemployment benefits extension nixed for nearly 1 million (Blog)

..............................6B) Aid bill's defeat a blow to states

..............................6C) Medicaid funds RI expected fail to pass

"WASHINGTON – Rhode Island and 30 other U.S. states face new gaps in budgets for the fiscal year that starts July 1, after the U.S. Senate failed to move forward a $16 billion boost in Medicaid assistance.

Senate Republicans wouldn’t support the measure on Thursday, after it had been cut from $24 billion, citing concern over adding to the federal deficit, which is forecast to reach $1.6 trillion this fiscal year.

Thirty-one U.S. states included a total of $11.6 billion worth of additional Medicaid payments in their spending plans for the 2011 budget year, data compiled by Bloomberg shows. Rhode Island’s budget for fiscal 2011 included an expected $108 million that failed to get approved."

"California, the most populous U.S. state, counted on $1.7 billion from the Medicaid extension, more than any other state, according to an outline of the budget Gov. Arnold Schwarzenegger proposed last month. The $123 billion budget projects a $19.1 billion deficit even with the additional Medicaid money. New York Gov. David Paterson included $1.1 billion of the funds in his proposed budget for the year that started April 1, according to budget documents.

In Pennsylvania, the U.S.’s sixth most-populous state, Rendell said the loss of the $850 million in extra Medicaid funds included in his proposed $28 billion budget would force the dismissal of up to 20,000 state workers."

"Fed watchers say Mr Bernanke and his close allies at the Board in Washington are worried by signs that the US recovery is running out of steam. The ECRI leading indicator published by the Economic Cycle Research Institute has collapsed to a 45-week low of -5.7 in the most precipitous slide for half a century. Such a reading typically portends contraction within three months or so.

Key members of the five-man Board are quietly mulling a fresh burst of asset purchases, if necessary by pushing the Fed's balance sheet from $2.4 trillion (£1.6 trillion) to uncharted levels of $5 trillion. But they are certain to face intense scepticism from regional hardliners. The dispute has echoes of the early 1930s when the Chicago Fed stymied rescue efforts. "

"SAN FRANCISCO (BCN) ― A San Francisco civil grand jury warned Thursday that the already financially beleaguered city faces a possible tsunami of pension and healthcare costs that could reach nearly $1 billion per year in five years.

"San Francisco is at the edge of a precipice," said Craig Weber, an accountant who headed the 2009-2010 grand jury committee that wrote the report released Thursday.

The report, titled "Pension Tsunami: the Billion Dollar Bubble," says serious reform is needed to prevent pension costs from causing deep cuts in city services over the next several years.

"The increase in pension costs cannot be sustained in San Francisco without serious cutbacks in services and loss of jobs," Weber said at a news conference.

The report, using figures from the city controller's office, estimates the costs of retiree pensions and health insurance will rise from $413 million in the current fiscal year to nearly $1 billion five years from now."

"Despite all the stimulus aimed at the housing market, it took builders a record median 14.2 months to find a buyer for a completed home in May. This sector is broken. People don’t want to buy an asset they see will depreciate in value. And people don’t want to pursue the dream of homeownership if it means taking out a mortgage – the scars from the credit collapse are obviously lingering if not accelerating.
Housing's Upside Down V-Shaped Recovery"

Median Months To Sell New Single-Family Homes

 

"Legislation containing a three month extension of the popular homebuyer tax credits to allow buyers to close by September 30th died in the Senate last night and the opportunity to extend the credits past the current deadline of June 30th may have passed.

The National Association of Realtors estimates some 75,000 first-time and repeat buyers need the three month extension on closing in order to qualify for the credits. Short sales, which require the lender to agree to take a loss on the seller’s mortgage, generally take much longer to close than standard sales, and as many as 15 percent of distressed property sales currently are short sales"

  • Other news and headlines:

Sovereign Crisis Has Stoked Stability Risks, BOE Says

Europe drags global takeovers to six-year slump

N.J. police, firefighter union leaders plead for federal funding to prevent layoffs

Greece selling islands to pay debt and Greece takes Germany's advice to sell off islands 

Fatal bombing may be ominous for debt-hit Greece

Italians strike over Berlusconi's austerity budget

Austerity cuts 'unconstitutional' (Romania)  and Romania Stocks Fall Most in World, Leu Weakens on Court Ruling

India frees up petrol prices, hikes other fuels and India fuel price rises stoke fears of inflation

Costa Rica Duplicates Fiscal Deficit

Oakland council OKs at least 80 police layoffs

Oakland adult education soon could be thing of the past

Flint still fighting $8M Genesee Towers ruling

Judge Approves $712 Million Settlement For 9/11 Emergency Workers' Health Problems

City Hall faces furloughs, layoffs with $67 million deficit (New Oleans...News video).....oil spill and the budget

San Bernardino looks to garbage for deficit relief ($24 million deficit)

Cost-Cutting Detroit Will Close 77 Parks

Stockton to shut down police camera system

After failed auction, California reaches tentative deal to sell OC Fairgrounds for $96M

Middle schoolers will pay to play sports in Livingston

PAT Budget Could Mean Massive Service Cuts (Pennsylvania)

County may need to cut even more services (Bakersfield, CA)

County's $17 million shortfall comes down hard on poor, needy (Santa Cruz, CA)

Pinellas to lay off 211 county workers (Florida)

2 subway lines to end amid NYC transit budget woes

Domestic debt surges by 19.04pc in 11 months (Pakistan)

Metro: Fares to rise Sunday with passage of $2.2b budget (Washington)

Teachers in LA and SF will see more cutbacks and pink slips in 2010-2011 (Blog)

Syracuse City School Board votes to cut 224 positions

Interview with New Jersey Gov Chris Christie

"Perfect storm" hits school districts (Texas)

Hawaii Pension Fund Loses Millions With BP Stock

West Palm, Delray, other South Florida cities begin slashing pension costs

Federal program aimed at financially troubled homeowners is failing, San Jose residents say

Banks ‘Dodged a Bullet’ as U.S. Congress Dilutes Trading Rules

Audit Shows Prison Inmates Received $9M in Homebuyer Tax Credits

"The police pension contribution in 2016 is estimated to be $570,427 and would eclipse the village's current tax levy if the status quo continues." (E. Dunde, Illinois)

Jasenica's picture
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Re: Daily Digest - June 25

Any chance of ONE good news article per day? Tongue out

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Helix
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Re: Daily Digest - June 25

You come here for good news? Wink

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Re: Daily Digest - June 25

All news about European austerity programs are good news. The world is coming to its senses. Maybe Obama and his team will also get it before it is too late.

Cheers

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Re: Daily Digest - June 25

Jasenica quote: Any chance of ONE good news article per day?

Jasenica this is the Daily Gut Check Digestion reality thread....get real LOL!  PS I am still searching for good news & will post it when found LOL.

Black Swan

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Re: Daily Digest - June 25
Jasenica wrote:

Any chance of ONE good news article per day? Tongue out

You must have missed it!  Honest it's there.

Consumer sentiment hits highest level since 2008.

What more could a person ask for heading into the weekend?

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Re: Daily Digest - June 25

Impartial says:

All news about European austerity programs are good news. The world is coming to its senses. Maybe Obama and his team will also get it before it is too late. 

HA HA HA HA HA HA HA HA HA....ooooohh that hurts....HA HA HA HA HA HA HA HA HA HA .... oooo, my sides ! HA HA HA HA HA HA HA

Whew !!  I could hardly stop laughing.   Maybe this is not good news but the thought of Obama and gang coming to their senses is just too funny. 

A good laugh .... if it did not hurt so much.

Bruce  Cool

 

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Re: Daily Digest - June 25
cmartenson wrote:
Jasenica wrote:

Any chance of ONE good news article per day? Tongue out

You must have missed it!  Honest it's there.

Consumer sentiment hits highest level since 2008.

What more could a person ask for heading into the weekend?

Ooooo, time to crank up the ole credit card.  Chaaaarrrrge!!!!

DougMoney mouth

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Re: Daily Digest - June 25

Davos, congratulations on your Financial Sense article!!  You go!!  (I would have submitted it to the DD if I'd had time to look for articles this AM, to save you from calling yourself  "Davos the Narcissist"!:)

And thank-you for laugh; "Stupidity Crisis";  too funny!

BTW, Lordson, your laugh (above) was contagious!!

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Re: Daily Digest - June 25

Davos,

What's a tabagogen?!

DavidC

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Re: Daily Digest - June 25
DavidC wrote:

Davos,

What's a tabagogen?!

DavidC

A tabagogen is a toboggan as spelled by a spelling moron (me).

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r
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Re: Daily Digest - June 25
cmartenson wrote:

You must have missed it!  Honest it's there.

Consumer sentiment hits highest level since 2008.

What more could a person ask for heading into the weekend?

Coincidently, there was a similar item in 1931: Consumer sentiment hits highest level since 1929.

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Re: Daily Digest - June 25

Here is some good news: Barney pulled his pants up after signing finreg.

 

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Re: Daily Digest - June 25
pinecarr wrote:

Davos, congratulations on your Financial Sense article!!  You go!!  (I would have submitted it to the DD if I'd had time to look for articles this AM, to save you from calling yourself  "Davos the Narcissist"!:)

And thank-you for laugh; "Stupidity Crisis";  too funny!

BTW, Lordson, your laugh (above) was contagious!!

Thx 4 the kind words and I'm working on part ii of that.

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Re: Daily Digest - June 25

I wonder what those two were doing together in which BFrank would have to be pulling his pants up?!?  We all know they both bend over for hard cash from our corporate sponsors, but I've never seen them bending over for each other!Money mouthKissSurprised

Davos wrote:

Here is some good news: Barney pulled his pants up after signing finreg.

 

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Re: Daily Digest - June 25

Davos,

I liked your article and you made me laugh with your response to my question! All the best for the weekend,

DavidC

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Re: Daily Digest - June 25
LogansRun wrote:

I wonder what those two were doing together in which BFrank would have to be pulling his pants up?!?  We all know they both bend over for hard cash from our corporate sponsors, but I've never seen them bending over for each other!Money mouthKissSurprised

Davos wrote:

Here is some good news: Barney pulled his pants up after signing finreg.

 

After seeing this: IMO the American populace is going to be buying a lot of Wyeth product.

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Re: Daily Digest - June 25

For those that take stock in local, regular folks as important data points please consider this from family I have in Louisiana:

begin quote:

Please watch this.  Growing grimmer by the minute for Louisiana and the world.  :  (

end quote.

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Re: Daily Digest - June 25

Some good news if you're a Floridian and Farid Khavari becomes the next governor. If more or the majority of  states end up following suit creating state run banks, it will spell the end of the Federal Reserve, IMF, EU and the economic disaster they have created.

Miami Fla - Noted economist Farid Khavari, a Democratic candidate for Florida governor, has gained national acclaim since announcing last July his plan to create a state-owned bank in Florida. Following Khavari’s move, gubernatorial candidates in Oregon and Illinois have made state-owned banks part of their policies and other states are looking closely at the idea of state-owned banks. The Virginia legislature has a pending resolution to establish a committee to consider a proposed state bank.

While other states seem to focus on interest savings for state and local governments, they are vague about benefits for ordinary citizens. In contrast, Khavari’s approach is to dedicate the bank to the service of all Floridians, while the state will win both in interest cost reductions and in profit from the proposed bank.

“The Bank of the State of Florida will operate using the same rules that apply to all banks. The difference is, our bank will be created to directly benefit all Floridians, not only the state. We have a very specific plan. The bank will pay 6% for CDs. Under fractional reserve rules, for every $100 deposited, we can create $900 in new money by making loans. In our case, we will concentrate first on 2% fixed rate, 15-year mortgages, both new and refinances,” Khavari said.

“Lending $900 at 2% earns the state $18 per year, while the interest paid on the $100 deposit is $6. This means that the state can earn $12 per year for every $100 in deposits. And by paying 6%, we can be sure there will be no shortage of deposits,“ Khavari continued. “The state can earn even more by issuing 6% credit cards while Floridians enjoy lower payments and get out of debt years faster. Of course we can finance and refinance state and local government projects at low rates, saving taxpayers billions per year while helping balance government budgets.

“We can even repay the tens of billions lost by the State Board of Administration, without raising taxes,” Khavari added. “Eventually, bank profits can replace tax revenue.”

Because the payment on a 2%/15 mortgage is slightly higher than for a 5.5%/30-year loan, the lower interest rate won’t artificially inflate the value of homes, according to Khavari. “Without high interest rates driving up prices, speculators will stay out of our housing market. We will provide mortgages only for owner-occupied homes, and for rental properties that offer stable, reasonable rents for the life of the mortgage. When we focus on what is good for our people, the state wins automatically,” Khavari said.”We don’t need to look to gambling revenues to patch up our budget.”

Benefits for Florida citizens would be substantial. “On a $200,000 mortgage, the homeowner will save over $170,000 in interest and pay for the home 15 years sooner. If the homeowner then deposits the savings each month at the Bank of the State of Florida for the following 15 years, at 6% that money will grow to over $320,000. Ten years later it would be over $600,000,” Khavari said. “That money stays in Florida to power our economy, and make Florida recession-proof. I hope the other states adopt this strategy with their state-owned banks.”

Noting that a few critics consider state-owned banks to be socialism, Khavari laughed. “Socialism is where everyone works for the state. Here we have a perfect example of public capitalism: the state works for everyone and makes a profit by saving people big money.”

Khavari’s economic plan also includes creating 1,000,000 private-sector jobs in Florida, without subsidies. “It’s just economics, not politics,” said Khavari.

Farid A. Khavari, Ph.D. is an economist and author of nine books, including Environomics. His latest book, Toward a Zero-Cost Economy, is available in stores or for free download at his website, www.khavariforgovernor.com.

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Re: Daily Digest - June 25

Regarding that "good news"

"Reports of job losses fell by half since last June, from 65 percent of respondents to 29 percent, the survey showed."

And how many of those households had people still layed off from a year ago, so without a job to lose?  It would be interesting to see the wording of the questions of this survey.  The media tends to be very superficial in reporting survey results, and most other things for that matter..


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Re: Daily Digest - June 25

State owned banks.... what I have learned is encouraging. 

Governors in all the states are beginning to realize the Federal Govt has amassed far too much power and is on the edge of open tyranny.   I know that sounds shrill and is not PC or at the least, uncomforatable to talk about.  But ole King George III looks like a kind, benevolent ruler when compared to the imperial rule imposed on us today by our own govt.  The Fed and Oligarchs have got control of our government and we must hit them  where it hurts them most - control of our money.

I think States should start banks independent of the Fed and do it quickly.  It may be better than secedingfrom the union.  Like a good cop - follow the money.  If we break the death grip the Fed has on our money and businesses, we break the grip of financial tyranny.

Pretty broad assertions - but I am hoping the average american will begin to realize what and who is really controlling our lives.  Only when there is a wholesale "reality epiphany" will we be able to sit down together in peace to hash out solutions to these problems.

State owned banks may be a very good way for the states and their citizens to begin wresting control from the powers that be and regain their independence and freedom.

Bruce  Cool

 

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Re: Daily Digest - June 25

I think States should start banks independent of the Fed and do it quickly.  It may be better than secedingfrom the union.

State banks are probably the beginning of succession as states need to have the ability to issue currency before they leave the union.  The problem with state banks, is that they are only as good as the people that run them.

The Florida state gov't is partly to blame for the finance mess. I suspect that things will get much worse before they start to get better. Florida should have done a better job to preserve its agraculture industry, but they let the housing developers to turn fields and orchards into housing developments that are unoccupied or never completed. Those fields use to produce state exportable good as well as in-state jobs. Now that land sits idle producing nothing but misery.

The problem is that as the Federal gov't marches into collapse Florida will lack the resource to pull itself up. The state is hopeless over populated and must import food and energy to sustain its population. Florida is a doomed state in my opinion, and will face severe misery in the years to come. The best option would be to move out of Florida before it becomes a living hell.

 

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Re: Daily Digest - June 25

I want to be upfront. I HATE gold.

as long as I am told where you come from....I see your post as they are..

here is your nightmare...

 

The Reagan Diaries, which follows Ronald Reagan's 8 year term through
his daily dairy entries, and lo and behold, early on at page 25 comes this obvious bombshell
from economist Arthur Laffer: "Art Laffer dropped a grenade on his colleagues when he said we weren't
going to solve the fiscal program until we returned to convertibility of money for gold. I would have
liked to heard the discussion among the economists after I left" - Ronald Reagan

your nightmare as I hate GOLD..

buy the book...../and read it..

this is the same BS I had to put up for the last 20 years with as to not pay your home loan off........cash it in as a loan.....and invest it in the market.......as to put my money to work......this is BS

 

 

 

 

 

 

 

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Re: Daily Digest - June 25

Bad news for Floridians!!!

 

 

Can't wait...State run banks, increased interest on CD's, more affordable mortgages. I wish the government would take over everything. They do so well. I love going to get a drivers license, I would love to sell my fedex shares and buy USPS shares if they only went public. Fannie and Freddie have been solid investments and a model in the mortgage business. Maybe we will get to vote on our interest rate on a CD or our interest rate on a mortgage.  Maybe this fellow will just say if you vote for me I will give you a house and money.  I agree the Fed is not doing well, but to put a banking system in the hands of state politicians or any politician period??? I don't call that good news.  This guy may have good intentions, but he could be gone in four years.

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Re: Daily Digest - June 25

State run bank

I bet the politicians of Illinois would love to set one of those up.  They would make the Fed and the Treasury look like Mother Teresa.  

 

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Re: Daily Digest - June 25

middleclassamerican  osb272646 - Look at the destruction the private banking system has brought upon us so far. If this continues and something is not done to abolish the present system, then some day in the future we may all will wake up without property, money, personal freedom and under the control of a New World Order. This is not good and no joke.

Famous Quotations on Banking

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of  all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809).

More Famous Banking Quotes - http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking/

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middleclassamerican
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Posts: 19
Re: Daily Digest - June 25

I just get real nervous about politicians controlling anything.  Personally I do not think we have a politician that is capable of running a hot dog stand.  It makes me more nervous to hear one say vote for me and I'll give you a 2% mortgage or a higher rate on your CD's.  Essential vote for me and I'll pay you, just let me run the bank.

I do agree the current system is broken, probably beyond any fix, and the Jefferson quote is on the money.   To simply blame just the banking system is a stretch for me.  I think Adam Smith's invisible hand has been running wild the last 10 years...politicians acting in their own self interest, regardless of long term consequences.  We are now simply starting to pay the piper.

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jhart5
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Posts: 89
Re: Daily Digest - June 25

middleclassamerican - I dont trust politicians very much either [anymore]. Presently the're under controll of Wall Street, large corporations, IMF and have little choice in the decisions they make unfortunately for the rest of us. There would be problems of course with a nation wide state and federally controlled banking system but the nations economy would then be controlled by the people and not the financially elite. This is good. The other option would be to kick the can down the road and hope for the best.

You might want to check out Zero Cost Economy site for details. http://www.zerocosteconomy.com/description.html

Do we really wish to act upon our knowledge? Does a majority of the population think it worthwhile to take a good deal of trouble, in order to halt and, if possible, reverse the current drift toward totalitarian control of everything? — Aldous Huxley

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middleclassamerican
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Posts: 19
Re: Daily Digest - June 25

jhart5...come on man! I went to the...

You might want to check out Zero Cost Economy site for details.http://www.zerocosteconomy.com/description.html

I thought I was reading Karl Marx's doctrine.  This is pure insanity!  An economy must produce products or services that other nations desire either through physical labor or intellect.  This is the only SUSTAINABLE method of running anything in a global economy.  A zero cost economy...ITS NOT SUSTAINABLE...This man is a clown! with a PHD after his name...sorry.  

 

If you truly want reform...don't vote for any lawyers/wordsmiths for office.  They know nothing about running an economy.  It is unfortunate that we only have three out of the thousands running...The Pauls and schiff.    It is nice that you have presented a possible solution, but if that solution is going to be run by clowns, I'm not for it.  We are in the midst of a sovereign debt crisis to the likes that the world has never seen before.  Our populous is not capable of understanding...therefore our politicians have no reason to solve.  Read The Wealth of Nations again...and the invisible hand...we are going to be the prime example for history.  We are simply repeating the 1920's and 30's again...only this time we are Europe and will default and China is the USA.  We will default, China will enter a depression, but will emerge as the economic superpower.

It is quite simple.  Think of a man who was once great, made lots of money through productivity, more than the world has ever seen.  A new man emerged who was actually more productive, so much more that the great man wanted to produce his products there.  He no longer produced wealth, but relied on the wealth from the productive society.  He became so dependent that he now borrowed money from them to finance his way of life.  He became hooked on debt, and the debtor continued to lend, even with a 2000 dollar salary and a 14,000 dollar debt.  The productive society lent so much that the unproductive society defaulted, and the wealth the productive society  evaporated and the unproductive society went back to living on $2000 a year.  It was nice when they were living on other peoples money and a $14000 income.  The productive society goes into depression, but continues to produce surplus, because after all they were producing surplus to lend, because what they were doing worked.  The same as the 30's with the USA and Europe.

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DmaxSilver
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Joined: Apr 20 2009
Posts: 24
Re: Daily Digest - June 25

Is Silver and Gold purchases factored into "Consumer sentiment"? 

 

cmartenson wrote:
Jasenica wrote:

Any chance of ONE good news article per day? Tongue out

You must have missed it!  Honest it's there.

Consumer sentiment hits highest level since 2008.

What more could a person ask for heading into the weekend?

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