Daily Digest

Daily Digest - November 29

Sunday, November 29, 2009, 11:38 AM
  • Abu Dhabi Will Not Race To Dubai's Rescue
  • Abu Dhabi Poised To Throw Lifeline To Dubai
  • Keiser On Dubai
  • As The Yen Soars, The Need For Intervention Grows
  • Benign Neglect Of The Dollar
  • US To Pressure Mortgage Firms For Loan Relief
  • Hiring Is Rising In One Area: Low-Paid Interns
  • Will The World Go Shopping This Christmas?
  • Dangers Of An Overheated China
  • Forget Gold And Silver, Invest In Garlic
  • Welcome To The Generation Of Million Dollar Kids
  • Americans Drowning Their Sorrows In Cheap Wine
  • A World Awash In Debt
  • The Ultimate Risky Business: How Lloyd's of London Insures Its Own Future
  • WealthTrack 521 | 11-20-09
  • A Little Something For The Haves
  • The Little Island And It's Big Green Victory

Economy

href="http://www.telegraph.co.uk/finance/financetopics/financialcrisis/6679605/Abu-Dhabi-will-not-race-to-Dubais-rescue.html">Abu Dhabi Will Not Race To Dubai's Rescue (M.W.)

Sheikh Mohammed of Dubai is under mounting pressure to explain the emirate’s debt problems, after hopes of a bail out from its neighbour faded. Any sign that Abu Dhabi’s support may not yet be secured could push global markets further into turmoil monday, analysts said, especially if Dubai’s ruler maintains his silence on the crisis beyond this weekend.

href="http://www.timesonline.co.uk/tol/news/world/middle_east/article6936028.ece">Abu Dhabi Poised To Throw Lifeline To Dubai (M.W.)

Investors were again fretting on Saturday. With details emerging of the meetings between the two city states, there was speculation that Abu Dhabi was pushing Dubai to accept onerous terms in return for a bail out - possibly calling for it to give up control of a prized asset such as Emirates, the Dubai airline. If Abu Dhabi were to overplay its hand, Dubai could still be forced to embark on a global firesale.

href="http://www.youtube.com/watch?v=cSWSwhn-AWc">Keiser On Dubai (M.W.)

Max discusses Dubai, and Phase II of the global credit crisis, which has barely just begun. India, China, and Germany are all about to announce substantial gold buillion purchases. (Video)

href="http://www.economist.com/businessfinance/displaystory.cfm?story_id=14996669
">As The Yen Soars, The Need For Intervention Grows
(M.W.)

The steeper the yen’s rise, the greater the risk that Japan degenerates into a spiral of falling prices and wages, which would cause untold damage to itself and to the world economy. If Japan were to fall into a deflationary trap, it would not suffer alone. Markets might quickly worry that over-indebted, slow-growing economies such as those of America and Britain were headed in the same direction.

href="http://www.telegraph.co.uk/finance/economics/6678334/Benign-neglect-may-turn-the-dollar-from-a-safe-haven-to-a-dangerous-place-to-be.html">Benign Neglect Of The Dollar (M.W.)

The US government is shouldering a vast $12 trillion debt pile. The trade deficit of the world's biggest economy also remains huge. How much longer can the dollar defy gravity?

href="http://www.nytimes.com/2009/11/29/business/economy/29modify.html?_r=1&ref=global">US To Pressure Mortgage Firms For Loan Relief (M.W.)

The Obama administration on Monday plans to announce a campaign to pressure mortgage companies to reduce payments for many more troubled homeowners, as evidence mounts that a $75 billion taxpayer-financed effort aimed at stemming foreclosures is foundering.

href="http://www.nytimes.com/2009/11/28/your-money/28interns.html?em">Hiring Is Rising In One Area: Low-Paid Interns (M.W.)

It is a brilliant, recession-proof way to double your work force, said Drew McLellan, whose McLellan Marketing Group in Des Moines has long hired unpaid interns. “It’s more money to the bottom line for you.”.

href="http://www.forbes.com/2009/11/25/global-retail-outlook-holiday-opinions-columnists-nouriel-roubini.html">Will The World Go Shopping This Christmas? (M.W.)

The holiday retail outlook in North America and Europe.

href="http://www.nytimes.com/2009/11/29/business/economy/29view.html?ref=global
">Dangers Of An Overheated China
(M.W.)

China has had a 30-year run of stellar economic growth. But it’s only human nature for such expansion to breed too much optimism, overextending an entire economy. Americans found this out the hard way. What will the consequences be for the US if and when the Chinese economic miracle encounters a major stumble?

href="http://www.independent.co.uk/news/world/asia/forget-gold-and-silver-invest-in-garlic-1828755.html">Forget Gold And Silver, Invest In Garlic (M.W.)

Thanks to a belief in its swine flu-repellent powers, garlic traders are on course to get stinking rich this year.

href="http://www.reuters.com/article/lifestyleMolt/idUSTRE5AQ0RT20091127">Welcome To The Generation Of Million Dollar Kids (M.W.)

Think your children are costing you a lot? You're right.

href="http://www.usatoday.com/money/industries/food/2009-11-27-wine_N.htm
">Americans Drowning Their Sorrows In Cheap Wine
(M.W.)

An industry group said that more wine would be consumed globally this year, thanks to a crisis-fueled demand for cheaper or discounted tipples, particularly in the US.

href="http://www.theglobeandmail.com/report-on-business/a-world-awash-in-debt/article1380944/">A World Awash In Debt (M.W.)

As the dust settles from the financial meltdown, policy makers are slowly coming to grips with the fact that a long battle with deficits and debt is only beginning. The immediate threat posed by economic calamity allowed them to forget about a reality that's been staring them in the face for years: The baby boomers are about to blow the budget.

The Ultimate Risky Business: How Lloyd's of London Insures Its Own Future (E.S.)

"In the past at Lloyd's, we used to write a lot of financial institution risk," Ward noted. "We provided a lot of cover to two great names, Enron and WorldCom. As a result of that, we paid out some really large claims."


But also as a result of that, Lloyd's made "a conscious decision to scale back our exposure to financial institutions because we were uncomfortable with that type of risk," Ward said. "We didn't really understand it that well. And if you don't understand it that well, don't do it.

WealthTrack 521 | 11-20-09 (E.S.)

About 2:40 he talks about the government debt, liabilities, and GDP. He then compares taxes to the liabilities which is pretty interesting.

href="http://www.huffingtonpost.com/deborah-jiang-stein/a-little-something-for-th_b_371667.html">A Little Something For The Haves (M.W.)

The offerings of Neiman Marcus' 2009 Christmas Book were unveiled last week. The usual million dollar plus medley is absent from this year's catalog. Nieman's is sensitive to the economic downturn with their recession-aware gifts.

href="http://www.independent.co.uk/environment/climate-change/the-little-island-and-its-big-green-victory-1827638.html">The Little Island And It's Big Green Victory (M.W.)

The inhabitants of this Danish isle seized upon wind's potential as a source of energy and money more than a decade ago. Since then the Baltic island has become one of the first industrialised places on the planet to qualify as being totally energy self-sufficient.

13 Comments

saxplayer00o1's picture
saxplayer00o1
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Posts: 4060
Re: Daily Digest - November 29

"What does it mean when you can't restructure your finances to make revenues match expenditures, and you can't pay your debts except through more borrowing?

Lots of people would call that bankrupt."

"New York’s cash reserve is dwindling quickly, and the state faces a crisis if it doesn’t address its budget woes soon.

If the government can’t reach a budget agreement by Dec. 31, the state’s cash reserve will total only $36 million, and that’s only if the state dips to the bottom of its emergency reserve."

"A behind-the-scenes advisory board to Mayor Jerry Sanders is right in the thick of things. We obtained a draft of the panel's report, which put the situation in pointed language: "Stop the half truths, unfunded mandates and budgetary gimmicks."

The final report could be quite different. But this one says that the city should begin laying the groundwork for bankruptcy and indeed file for it if it can't complete a long list of difficult reforms."

"SPRINGFIELD -- By most measures, Illinois is broke.

The state can't pay its bills on time. It is poised to top the $3 billion mark in the amount of money it will borrow this year to stay afloat. Programs are being cut and there is talk of selling off assets to help pay bills.

But don't expect the state to declare bankruptcy anytime soon. It can't.

Individuals, businesses and even local governments can file for reorganization under federal bankruptcy laws. But, that doesn't cover state governments."

"NANJING, Nov. 29 (Xinhua) -- China hopes the world's major reserve currency will maintain stable, said Chinese Premier Wen Jiabao here Sunday when meeting with three Euro Group leaders.

He was speaking with Euro Group President and Luxembourg Prime Minister Jean-Claude Juncker, European Central Bank President Jean-Claude Trichet and European Union Economic and Monetary Affairs Commissioner Joaquin Almunia ahead of the 12th EU-China summit."

"TEHRAN, Nov. 29 (Xinhua) -- Iran is planning to use its own rial as the currency in international transactions, the local satellite Press TV reported on Sunday.

Iran has started discussions with other countries concerning the use of its national currency in international transactions, Iranian banking official Mahmoud Reza Khavari said.

"Some countries have agreed to use the Iranian rial for payment in some transactions," Khavari, president of Bank Melli Iran, was quoted as saying."

"“China is likely to become the number-one supplier and consumer of gold this year,” said Rozanna Wozniak, investment research manager at the World Gold Council."

"Bullion, up 34 percent this year, is set for a ninth annual gain as central banks, pension funds and individual buyers seek to protect their assets from potential currency debasement and inflation. Gold may climb to $1,500 an ounce as the dollar falls amid low interest rates, Kenneth Tropin, chairman of Graham Capital Management, told Barron’s in its Nov. 30 issue."

"Neelie Kroes, the outgoing EU Competition Commissioner, has called for banks to repay governments as quickly as possible to remove the risk of government default.

Ms Kroes, who has called for the Royal Bank of Scotland to sell some of its best assets – including its prized insurance division – and for Lloyds Banking Group to divest a chunk of its high street branches, said: "We need to get banks off state support quickly."

Referring to the Dubai debt crisis, Kroes said banks, through restructuring and the restoration of healthy competition, should repay governments quickly and reduce the risk of government default.

Kroes, who is set to leave her role in the new year, called rising state debt a "time-bomb" that could bring down banks if governments default on state bonds. "Sovereign debt default could not only bring down a government but also a bank or series of debtors."

Speaking at the same event in Amsterdam, Harvard professor Niall Ferguson said: "We should prepare for years of upheaval. The latest development in the Gulf region illustrates this.""

"And while The Washington Postand The New York Times have covered Pittsburgh's economic face-lift in recent months, lost tax revenue and a costly pension program for city workers have kept it flirting with bankruptcy. It's been "like watching a limb die," says Rob Stephany, executive director of Pittsburgh's Urban Redevelopment Authority (URA)."

 

................OK, I wasn't planning on posting until tomorrow, but thought all of the mentions of the "B" word in news and editorials over the weekend were interesting. In a few hours we should see how things start to play out for Dubai, since for now nobody seems to have this one figured out.

DavidC's picture
DavidC
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Re: Daily Digest - November 29

For those of you who have followed, or read, Martin Armstrong, this news today;

http://economicedge.blogspot.com/2009/11/martin-armstong-forced-to-move-to-high.html

And a piece of his I was reading earlier today;

http://www.martinarmstrong.org/files/Looking-Behind-the-Curtain4909.pdf

DavidC

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james_knight_chaucer
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Re: Daily Digest - November 29

Hello David,

I have read both of Martin Armstrong's blogs listed above. The rest will have to wait until another day. The poor man. Wouldn't Amnesty International or a similar organisation be willing to take up his case?

We have a case here in the UK of a man called Gary McInnon, an Asbergers sufferer, who is fighting extradition to the USA because he hacked into the Pentagon computers eight years ago looking for evidence of UFO's. The prosecution are seeking ten years imprisonment for each of six offences.

idoctor's picture
idoctor
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Re: Daily Digest - November 29

David thanks interesting stuff.....

Iran plans enrichment sites in defiance of UN

http://news.yahoo.com/s/ap/20091129/ap_on_re_mi_ea/ml_iran_nuclear

joemanc's picture
joemanc
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Posts: 834
IRS files $79,000 tax lien against Schwarzenegger
Quote:

The lien was reported this morning by TMZ.com, which posted a copy of a lien document that says it is from the county recorder's office. That document shows that Schwarzenegger owes $39,047.20 from 2004 and $40,016.80 from 2005. The document also lists a section of the IRS code that suggests the debt may be penalties for a failure to report certain business transactions.

http://latimesblogs.latimes.com/lanow/2009/11/irs-files-79000-tax-lien-a...

 

And then you wonder why California and the nation is headed towards a cliff(or is it a brick wall?)

ao's picture
ao
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Re: Daily Digest - November 29
james_knight_chaucer wrote:

Hello David,

I have read both of Martin Armstrong's blogs listed above. The rest will have to wait until another day. The poor man. Wouldn't Amnesty International or a similar organisation be willing to take up his case?

We have a case here in the UK of a man called Gary McInnon, an Asbergers sufferer, who is fighting extradition to the USA because he hacked into the Pentagon computers eight years ago looking for evidence of UFO's. The prosecution are seeking ten years imprisonment for each of six offences.

I've read Armstrong's story in the past and it's simply unreal.  And then the Asperberg's case you mention.  And then the elderly man in the UK defending himself with a firearm against two thugs sentenced to life imprisonment.  The insanity just grows.  We let murderers walk but heaven forbid if you're an non-violent citizen who doesn't want to march lockstep with the matrix.

 

 

 

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mono
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Re: Daily Digest - November 29

Max Keiser really has the ability to get on one´s nerve. He is so obsessed with the general idea of system-failure and at the same time so overly concerned about his selfportrayal. His analysis maybe right at times, but i`d much rather listen to the likes of Marc Faber who seems much less on an agenda. Marc Fabers comments are more profoundly based in economics only and much less tainted by narcissism.

With Max Keiser i can´t help thinking, there´s nothing he wants to see more than the whole thing come crushing down. I don´t share that enthusiasm.

idoctor's picture
idoctor
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Re: Daily Digest - November 29

Max Keiser really has the ability to get on one´s nerve.

I agree with you even though I listen to what he says he gets on my nerves too LOL. So does Alex Jones. Gearld Celente gets a little old also but this picture of Al Gore was funny.

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idoc
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Re: Daily Digest - November 29

http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-s...

with all the financial implications of Dubai swirling around since last wks bomb, i believe the world is missing the larger damning question that needs to be asked directly to Obama on national TV in front of a world audience, which i will phrase from a personal standpoint:

why, as a physician and healer of Americans, are my hard earned tax dollars (along with theirs) being funneled to Citigroup in the form of a multi billion dollar US taxpayer bailout, who then openly funds Dubai World who then uses those same funds to setup slave camps, kidnap multinationals, force inhumane labor conditions which then lead to the shearing of families, suicides, and death?????!!!!!!!!

i believe this larger issue is the one which Obama cannot escape and could lead to his political downfall.  no one on Capitol Hill seems to care that he's in bed with the banksters.  perhaps someone up there will care that he is condoning human rights violations.

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Davos
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Re: Daily Digest - November 29
idoc wrote:

http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-s...

with all the financial implications of Dubai swirling around since last wks bomb, i believe the world is missing the larger damning question that needs to be asked directly to Obama on national TV in front of a world audience, which i will phrase from a personal standpoint:

why, as a physician and healer of Americans, are my hard earned tax dollars (along with theirs) being funneled to Citigroup in the form of a multi billion dollar US taxpayer bailout, who then openly funds Dubai World who then uses those same funds to setup slave camps, kidnap multinationals, force inhumane labor conditions which then lead to the shearing of families, suicides, and death?????!!!!!!!!

i believe this larger issue is the one which Obama cannot escape and could lead to his political downfall.  no one on Capitol Hill seems to care that he's in bed with the banksters.  perhaps someone up there will care that he is condoning human rights violations.

Kakistocracy • \kak-uh-STAH-kruh-see\ • (noun) : government by the worst people.

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gregroberts
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The Dollar Bubble

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Mike Pilat
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Re: Daily Digest - November 29

Davos++

I just expanded my vocabulary with that word last night listening to Max Keiser.

Gerald Celente goes so far as to say this isn't even government, it's just a collection of self interested crooks.

Davos's picture
Davos
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Re: Daily Digest - November 29
Mike Pilat wrote:

Davos++

I just expanded my vocabulary with that word last night listening to Max Keiser.

Gerald Celente goes so far as to say this isn't even government, it's just a collection of self interested crooks.

Max can remind me of a hyperactive kid, Celente can go on, but I have to admit, they never cease to inform me - and as in this case, Keiser nailed it.

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