Daily Digest

Daily Digest - March 1

Monday, March 1, 2010, 10:49 AM
  • Soros Criticizes Obama's Bailouts
  • The Debt to the Penny and Who Holds It
  • Shell Abandons Colorado Water Rights Bid, Placing Regional Oil Shale Development On Hold
  • Young People "Needed To Save UK Farming"
  • Agricultural Expertise Needed To Feed, Fuel World's Skyrocketing Demands For Food, Energy

Economy

Soros Criticizes Obama's Bailouts (Christian W.)

"The solution that he found to the financial crisis, which was to effectively bail out the banks and allow them to earn their way out of the hole, was, in my opinion, not the right solution," Mr. Soros said in an interview with CNN. "He should have compulsorily replaced the capital that was lost."

The Debt to the Penny and Who Holds It (TAsland)

Check out this jump in US debt (about $32,000,000,000.00 in one day)

Energy

Shell Abandons Colorado Water Rights Bid, Placing Regional Oil Shale Development On Hold (Christian W.)

Shell Oil Co. said Tuesday it is abandoning its quest for water rights from a northwest Colorado river to develop oil shale production, citing delays in the project due to the global economic downturn.

Environment

Young People "Needed To Save UK Farming" (Christian W.)

According to skills council Lantra, 41% of the agricultural workforce in the UK is over 50, almost half of farm owners and managers don't have anyone to take over the business, and over the next decade 60,000 new people will be needed to replace retiring workers.

Agricultural Expertise Needed To Feed, Fuel World's Skyrocketing Demands For Food, Energy (Christian W.)

The United States Department of Agriculture predicts 52,000 ag-related job openings for college graduates will be needed in 2010--even as the country finds its national unemployment rate hovering around 10 percent. Available jobs are expected in broad areas of food, animal and environmental science. Jobs such as animal geneticists, biochemists, botanists and food engineers will be needed.

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20 Comments

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest - March 1

"March 1 (Bloomberg) -- While the eyes of the world focus on Greece’s debt crisis, investors in Edinburgh are busy preparing for the U.K. to be next.

Turcan Connell, which caters to rich families, expects the pound to lose between 20 percent and 30 percent against the dollar once investors turn their sights on Britain as the government sells a record amount of debt."

"Government debt in the world's second-largest economy has swollen to more than twice the size of its annual gross domestic product, and some analysts question how long Japan can keep borrowing without causing a spike in borrowing costs, or, in a worst case scenario, a default.

Pundits predicting a looming Japanese debt crisis have already set off brief spasms of selling in Japan's government bonds. Standard & Poor's in January warned it might downgrade the country's sovereign-debt rating to levels below those of Chile. Moody's on Thursday also threatened to cut its view on Japan if the country fails to put together a convincing plan for debt reduction."

..........................2A) Japan Scrambles to Avoid Being the Next Greece

"Calpers is considering reducing the projected rate of return used by the giant pension fund to make investment decisions. A cut could force cash-strapped governments in California to pay millions more each year to cover their employee pension obligations.

Since 2003, the California Public Employees' Retirement System has assumed that the value of its stocks, bonds and other holdings would increase by 7.75% a year. But the likelihood of an extended period of modest economic growth world-wide is fueling doubts inside Calpers that the pension fund can continue aiming so high.

Pressure to lower the target has been building for months. "You'll be lucky to get 6% on your portfolios, maybe 5%," BlackRock Inc. Chairman and Chief Executive Laurence Fink told Calpers board members last July."

"AFTER $1 BILLION in investment losses, Philadelphia's municipal pension fund has sunk into its biggest hole yet - about $5 billion short of the assets it should be holding to pay future retirement benefits to thousands of city employees.

An actuarial report prepared for the city pension board says that the system's assets, valued at $4 billion in mid-2009, amounted to just 45 percent of its liabilities - significantly weaker than the pension funds in most of the nation's big cities.

The deficit will force city taxpayers to come up with $1.7 billion for the pension system over the next three years - more than $1,000 for every man, woman and child in Philadelphia, according to projections that the city has put into its five-year financial plan."

"Lacking congressional action, the federal government has essentially halted a 21.2% Medicare pay cut for physicians that was to go into effect today.

The Centers for Medicare and Medicaid Services has ordered contractors to hold claims for 10 days, which temporarily shelves the Medicare pay cut scheduled to begin today. CMS expects that provider cash flow would not be interrupted.

The CMS took the action after the Senate failed to extend the pay cut plan and went home for the weekend on Friday, says CMS spokesman Peter Ashkenaz."

"SPRINGFIELD — Gov. Pat Quinn’s initial budget scenario revealed last week shows the potential for big cuts in school funding next year because federal stimulus money is drying up.

With that lifeline from the federal government being pulled back, Illinois is among the states that already are struggling with their budgets. And some state officials already are asking for help from Washington again.

Illinois is using $922 million in stimulus money to pay for schools this year, and unless Congress votes to send more, that amount could get cut next year."

"March 1 (Bloomberg) -- Natalie Brill, chief of debt management for Los Angeles, would like to take advantage of record-low interest rates to save at least $4.55 million by refinancing bonds for the second-most populous U.S. city. Except Ben S. Bernanke’s monetary policy would wipe out much of the savings.

Brill, 47, is caught in an unintended consequence of the Federal Reserve chairman holding overnight rates near zero to ease the worst recession since the 1930s. The city, facing a $212 million budget deficit for the current fiscal year, could sell tax-exempt obligations yielding less than 4 percent to retire 5 percent debt sold seven years ago. To do so, Brill would first have to park the proceeds of the new bonds in U.S. government securities that under Bernanke pay as little as 0.53 percent."

"The Commerce Department said Monday that personal spending rose by 0.5 percent in January, slightly better than expected. But incomes edged up only 0.1 percent, significantly lower than the 0.4 percent gain that economists had expected.

The income gain was the weakest showing in four months and raised more concerns about whether consumers will be able to keep spending at a sufficiently strong pace to support an economic rebound. Consumer spending is closely watched because it accounts for 70 percent of total economic activity."

"Mellow's pension will be in the news when policymakers are focused on a looming pension fund crisis that will hit taxpayers hard - a projected $4 billion spike in pension costs for both the State Employees Retirement System and the Public School Employees Retirement System in 2012-13, due to the impact of baby boomers retiring, pension increases enacted in 2001 and large investment losses in the 2008 stock market downturn.

"Here we are now looking at a $3 billion to $5 billion crevasse," said John Kennedy, a former House lawmaker from the Harrisburg area running for the Republican nomination for lieutenant governor."

"The payday loan industry has found a new and lucrative source of business: the unemployed.

Payday lenders, which typically provide workers with cash advances on their paychecks, are offering the same service to those covered by unemployment insurance.

No job? No problem. A typical unemployed Californian receiving $300 a week in benefits can walk into one of hundreds of storefront operations statewide and walk out with $255 well before that government check arrives -- for a $45 fee. Annualized, that's an interest rate of 459%."

"Florida's unemployment rate is expected to hit 12 percent, the highest ever recorded, with more than one million out of work in the state.

This is the first time in Gov. Charlie Crist's tenure as governor that state economists project state tax revenues to raise, if modestly.

The state's unemployment rate currently rests at 11.8 percent. Businesses, some of them facing 1,000 percent increases in unemployment taxes, are threatening layoffs.

Crist and legislative leaders want to delay the pain, but experts say that increases are unavoidable. Their plan would raise the per-employee tax to $25.20 this year and $53.90 the next. But it would soar to $192.95 in 2012."

(Look at the graphs)

Sweden unexpectedly slipped back into recession in the fourth quarter

Eurozone unemployment rate stays at worrying 9.9%

Italy Unemployment Rate Rises as Recovery Fails to Create Jobs

Argentina's Inflation 'Fire' Poised to Accelerate: Week Ahead

Canada's soaring debt threatens lifestyle

America's hidden debt bombs (CNN Money)

Euro 'may not survive' deficit crisis, Soros says

Markets will absorb record borrowing - adviser (India)

Official: Default is 'not on the agenda' (Ukraine)

Mailboxes disappearing from South Florida as Postal Service struggles with deficit

Chapter 9 in city's future? Report says Johnstown should consider bankruptcy (Pennsylvania)

Germany moves to out Greek debt speculators-source

Commercial assessments in DC plunge (Residential properties down 3%, commercial down 10%)

In hard times, hospitals are bleeding money (Michigan...uncollected patient debts)

Councils in England set to make 25000 job cuts

Colleges to release budget cut plans this week (Georgia colleges need to cut $600 million)

Granite Falls schools ask for help to buy textbooks

Retirement age in Ireland could be on the way up

Man Spends $700 On Cell Phone Minutes To Get $700 Unemployment Check

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Re: Pretty Funny Euro Comments

 

(warning: language)

Johnny Oxygen's picture
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Silver Supply-Crisis Looms

Silver Supply-Crisis Looms

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=9105:silver-supply-crisis-looms&catid=49:silver-commentary&Itemid=130

 

Today, the gold/silver price-ratio has been ranging between 60:1 and 70:1. This ratio would be totally unsustainable even if all of the world's silver were still available for demand – rather than gone forever. However, with 90% of the world's available silver gone, what this means is that the gold silver price-ratio is at its most-radical extreme (by at least a factor of ten) than at any other time in 5,000 years.

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Re: Silver Supply-Crisis Looms

JO Thank you so much for that link....Just when i start to waiver on my "am I being a paranoid doomsdayer...?"

I'm happy for my silver.

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Re: Daily Digest - March 1

Good interview with James Dines part 2: king world news.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/2/27_James_Dines__Part_II.html

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Re: Daily Digest - March 1

As many as 100,000 jobs could go in councils over the next three years as Government spending cuts start to bite, a leading expert has warned.

http://www.telegraph.co.uk/news/newstopics/politics/7345952/100000-counc...

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Re: Daily Digest - March 1

 

 ... a good start !

 the overpaid executives will probably try to cut the genuinely useful stuff first like libraries and refuse collection...  to get the public on their side... hopefully they'll fail.

 

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Re: Daily Digest - March 1

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Re: Daily Digest - March 1

John Mauldin sums it up best in this article.  The Fed is now officially powerless - their printing presses do not work.  Adjusted Monetary Base is growing at insane rates again, but M-3 is collapsing.  This is pure deflation taking hold - as the printing presses are failing completely - imo

http://www.investorsinsight.com/blogs/thoughts_from_the_frontline/archiv...

 

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Soros

Correct me if I'm wrong, but I thought George Soros had retired? I know he came out of retirement to profit from the housing bubble collapse, but I thought he had retired, again? Maybe he knows something? Money mouth

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Re: Soros
joemanc wrote:

Correct me if I'm wrong, but I thought George Soros had retired? I know he came out of retirement to profit from the housing bubble collapse, but I thought he had retired, again? Maybe he knows something? Money mouth

He's like a Trap Door Spider. Always lurking in the shadows ready to strike a hapless victim Surprised

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Re: Soros

Soros has managed his fund since the financial collapse of 2008. I don't think he trusted his fundmanagers to properly navigate a nasty bearmarket.  

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Re: Daily Digest - March 1
idoctor wrote:

Good interview with James Dines part 2: king world news.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/2/27_James_Dines__Part_II.html

THANKS!

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Damnthematrix
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wannabuy some real cheap real estate...?

http://www.foreclosure.com/

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Re: Daily Digest - March 1

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Re: Daily Digest - March 1

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Re: Daily Digest - March 1

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Re: Daily Digest - March 1

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Re: Daily Digest - March 1
Obama plan: $50M for friendly media in Pakistan
By Gavin Dahl
February 28th, 2010
 
New US-sponsored Pakistani media will raise awareness and build a brand for America, according to sources in the international press.

The Obama administration is set to spend $50 million on media in Pakistan.

The goal is to raise awareness of projects aimed at reversing anti-American sentiments.

The US Special Representative to Pakistan and Afghanistan, Ambassador Richard Holbrooke believes that a substantial amount of monies spent on media, especially private TV channels, will reduce tension and may even bring Pakistan-US relations back on the right path, according to Examiner.com.

The Obama administration sent lawmakers this week a plan for $1.45 billion in aid for Pakistan this year, funding water, energy and other projects as well as a media campaign to counter extremist views, according to Reuters.

"This effort will reduce the ability of al Qaeda and other extremists to influence public perceptions and attitudes and support Pakistan's people and government as they establish a more secure, prosperous and lasting state," the report said.

Military spending, more than $10 billion over the past nine years, has not been effective at building better relations with Islamabad so under Obama the focus will shift to infrastructure, and apparently propaganda.

As RAWSTORY has extensively investigated, Obama's predecessor oversaw massive propaganda campaigns targeted at US citizens.

According to PR Watch, those programs were illegal under US law:

The Pentagon military analyst program unveiled in last week's exposé by David Barstow in the New York Times was not just unethical but illegal. It violates, for starters, specific restrictions that Congress has been placing in its annual appropriation bills every year since 1951. According to those restrictions, "No part of any appropriation contained in this or any other Act shall be used for publicity or propaganda purposes within the United States not heretofore authorized by the Congress."

The Obama administration plans to help Pakistan’s democratic government meet budget shortfalls and deliver services to a population increasingly angry about economic and security troubles. US law allows public money to be spent by the federal government on foreign propaganda.

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Re: Daily Digest - March 1

http://abcnews.go.com/Business/wireStory?id=9958995

Head of IMF Proposes New Reserve Currency

IMF's Strauss-Kahn suggests IMF may one day provide global reserve asset By HARRY DUNPHY Associated Press Writer WASHINGTON February 26, 2010 (AP) Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.

"That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now," he said in a speech on the future mandate of the 186-nation Washington-based lending organization.

Strauss-Kahn said such an asset could be similar to but distinctly different from the IMF's special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies.

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