Daily Digest

Daily Digest - September 15

Tuesday, September 15, 2009, 10:45 AM
  • Protectionism Wars: China Probes US Autos, Chickens After Obama Tire Tariff
  • Nobel Prize-winner Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman
  • Lehman Is A Footnote In The Great East-West Globalisation Crisis (H/T Minestein)
  • Lehman collapse: President Barack Obama to push banking overhaul
  • Go HOME! CNN: DC Crowd (Video on page)
  • Wells Fargo (Bailout Recipient), Repos Madoff Collateral for Weekend Retreat, Buyer get snubbed. (H/T Cat)
  • Wish You Were Here (Jim Quinn)
  • Dow 9 years ago (Chart)

Economy

Protectionism Wars: China Probes US Autos, Chickens After Obama Tire Tariff

China announced a probe into the alleged dumping of American auto and chicken products, two days after U.S. President Barack Obama imposed tariffs on imports of tires from the Asian nation.

Chinese industries have complained that they’re being hurt by “unfair trade practices,” the nation’s Ministry of Commerce said on its Web site yesterday. The Beijing-based ministry is also looking into subsidies for the products, it said. It didn’t specify the imports’ value.

Nobel Prize-winner: Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman

Stiglitz, former chief economist at the World Bank and member of the White House Council of Economic Advisers, said the world economy is “far from being out of the woods” even if it has pulled back from the precipice it teetered on after the collapse of Lehman.

“We’re going into an extended period of weak economy, of economic malaise,” Stiglitz said. The U.S. will “grow but not enough to offset the increase in the population,” he said, adding that “if workers do not have income, it’s very hard to see how the U.S. will generate the demand that the world economy needs.”

The Federal Reserve faces a “quandary” in ending its monetary stimulus programs because doing so may drive up the cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S. government,” Stiglitz said.

Lehman is a footnote in the great East-West globalisation crisis (H/T Minestein)

You can see why markets and governments both like to blame Lehman Brothers for the "Great Contraction". Such wishful thinking shields investors from the nasty reality that deeper forces are at work: it absolves officialdom from its own destructive role in fixing the price of credit too low for 20 years, luring us into debt.

Lehman Collapse: President Barack Obama to Push Banking Overhaul

On the eve of the one-year anniversary of Lehman's liquidation filing , the US President will on Monday warn that there remains much to be done to ensure the problems of the last 12 months do not happen again.

Speaking just 10 days before the start of the G20 summit in Pittsburgh – at which world leaders are set to discuss curtailing bankers' bonuses among a raft of potentially restrictive reforms – he will also put the amount of capital banks hold on their balance sheets back at the top of the agenda, acknowledging that the demise of Lehman and Bear Stearns were a by-product of inadequate capital requirements.

In a wide-reaching speech on the need for regulatory reform in order to avert another financial crisis he will call on the US Senate banking committee to kick-start work on these reforms as soon as possible.

Go HOME! CNN: DC Crowd "Tell the truth" (Video on page)

Wells Fargo (Bailout Recipient), Repos Madoff Collateral for Weekend Retreat, Buyer get snubbed. (H/T Cat)

Wish You Were Here (Jim Quinn)

As I watched some of the Sunday talk shows this weekend, I had to laugh at the fools who pass for journalists today. The outrage over Joe Wilson calling the President a liar because he was lying shows how trite and shallow these nattering nabobs have become. Four U.S. Presidents have been murdered in office for their views. Let’s have some perspective people. As I watched Sam (worst toupee in history) Donaldson, Cokie Roberts, and David Brooks heap scorn and ridicule on the thousands of concerned middle class Americans marching on the Mall in Washington, while applauding Ben Bernanke, Hank Paulson and Timmy Geithner for saving the world by printing money, I realized that the existing political and financial system will have to be brought down before we have any chance to regain our liberty in this country. The power of the Washington/Wall Street/Media elite is immense. We will not get the truth from these people. We must turn to the past for our wisdom and truth:

“I am sorry to think that you do not get a man's most effective criticism until you provoke him. Severe truth is expressed with some bitterness.” – Henry David Thoreau

Dow 9 years ago (Chart)

46 Comments

cipher's picture
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Re: Daily Digest - September 15

"Protectionism Wars: China Probes US Autos, Chickens After Obama Tire Tariff"

Looks like there's a possibility of this series of "probes" and "restrictions" may lead to a longer affair !

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Re: Daily Digest - September 15

"Some unprecedented news today, folks. Never in the history of the United Nations has a U.S. President taken the chairmanship of the powerful UN Security Council. "

http://www.infowars.com/in-violation-of-the-constitution-obama-takes-on-...

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Re: Daily Digest - September 15

I hope this hasn't already been posted.  Nothing earthshakingly new, but a visual reminder that there is no recovery:  http://globaleconomicanalysis.blogspot.com/2009/09/ghost-fleets-and-protectionism.html

 . . . . and there's more detail here:  http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html

 

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Re: Daily Digest - September 15

the Jim Quinn article is very good. For those that hold out faith that our politicians - whether donkeys or elephants - Jim Quinn offers a summary of the many lies we have been subjected to in the past two decades and the often devastating results the lies have. The two party system persists because of manipulations by the media or the ignorance of the American people. Take your pick. It's sad to see this game still goes on with even a glimmer of apparent legitimacy.

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Dear Zachary: A Letter To A Son About His Father

This has absolutely nothing to do with the 3Es, but my wife and I watched this documentary last night and we both thought it was the best documentary we have ever seen. If you ever get a chance to watch it, don't hesitate. Its been sitting on my hard drive for 4 months and now that I watched it I can't believe I waited so long to check it out. Its one hellava story, and Kurt Keunne does a masterful job at presenting it.

http://dearzachary.com/

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Re: Daily Digest - September 15

I watched it a couple weeks back (Netflix has it ondemand).  Great documentary, although you need to find a good comedy to watch after it to get back to somewhat normal.

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Re: Daily Digest - September 15
  • 1) Russia should sell oil and gas for roubles - Dvorkovich
  • 2) Someone from the Fed finally admits that low interest rates contributed

to the housing bubble:

"The central bank must be more mindful of asset-price bubbles now, she said. Low Fed rates “probably” helped inflate the housing bubble, Yellen said in response to an audience question."

  • 3) This blog (like a recent one from this site) thinks that foreign  purchases of treasuries

are being "faked"

  •  
    • 4) Europe eclipse North America as world's richest region, new survey finds
    • 5) U.S. Commercial Property Won’t Recover Until 2012, Survey Says
    • 6)  Dylan Ratigan talks of his "awakening" last fall
    • "It became clear that I had made a grave error in affording those who built and ran those banks and insurance companies the honorable treatment of being called a capitalist — either an investor or an innovator — one who creates value for others and is paid accordingly.

      They were in fact the exact opposite, vampires using the weaponry of "Too Big Too Fail" to steal money from the U.S. government and American workers, retirees, students, etc.

      But how were they able to do it? Was it an accident? Or did they change the rules of the game so they could embark on this path of massive systematic theft from the American people? The deeper I went, the more questions I asked, the worse it appeared. "

7) Nearly 1,000 Layoffs Loom at City Hall as Money Runs Out of money (Los Angeles)

  • 8) Lilly Plans 5,500 Layoffs as Company Heads

Over Zyprexa Patent Cliff

  • 9) BATON ROUGE, La. -- While politicians argue about the nation's long-term health care problems, Louisiana faces a health care tsunami

within a year.

  • 10) 

The PBGC is a private, government-owned corporation funded through premiums from businesses and   funds from pensions it takes over. It doesn't receive taxpayer money, but many in Congress think taxpayers eventually will have to bail out the PBGC, which has a $33.5 billion deficit.

In May, the PBGC said it was closely monitoring companies in the auto manufacturing and auto supply industries. According to its estimates, auto sector pensions are underfunded by about $77 billion, of which $42 billion would be guaranteed by PBGC.

 

be for them to exit.

 

"At the height of the boom, just 20% of Universal's mortgages were backed by the Federal Housing Administration, an arm of the government that guarantees loans to borrowers who can't afford big down payments. Today, the FHA accounts for more than 80% of his business. For Mr. Lansing, this represents a new way of life -- more government, more paperwork, but also a lot of sales that wouldn't have happened otherwise."

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Re: Daily Digest - September 15

Speaking of truth.....

From Jim Quinn's article

Social Security & Medicare    
Unfunded Liabilities    
(Trillions of dollars)    
 

2008

2009

Social Security $15.8 $17.5
Medicare Part A $34.7 $36.7
Medicare Part B $34.0 $37.0
Medicare Part D $17.2 $15.6
Total $101.7 $106.8
Source: 2009 Trustee Report

 

 

 

From the 2009 Trustee Report on Medicare:

 

Table V.D2.—Present Values of Projected Revenue and Cost Components of 75-Year Open-Group Obligations for HI, SMI, and OASDI

(In trillions, as of January 1, 2009)

Revenue and expenditure categories

HI

SMI

OASDI

Combined

Revenues from public:

Payroll and benefit taxes

$12.0

$37.2

$49.2

Premiums

0.0

$7.2

7.2

Other taxes and fees1

1.0

1.0

Total

12.0

8.2

37.2

57.4

Total expenditures to public

25.8

32.5

44.9

103.2

Net Results for Budget Perspective

−13.8

−24.3

−7.7

−45.8

Revenues from other government accounts:

Transfers

0.0

24.2

0.0

24.2

Interest credits

n/a

n/a

n/a

n/a

Total

0.0

24.2

0.0

24.2

Trust fund assets on January 1, 2009

0.3

0.0

2.4

2.7

Net Results for Trust Fund Perspective

−13.4

−0.1

−5.3

−18.8

 

The 2009 trustee report shows a NPV of minus -45.8 trillion for medicare A B and D (which is an updated version of the older number CM uses in the Crash Course).

Jim Quinn shows minus -89.3 trillion.  Big difference. 

 

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Big Ben Proclaimeth...............

WASHINGTON - Federal Reserve Chairman Ben Bernanke said Tuesday that the worst recession since the 1930s is probably over, but the recovery would be slow and take time to create new jobs.

Bernanke said the economy likely is growing now, but it won't be sufficient to prevent the unemployment rate, now at a 26-year high of 9.7 percent, from rising.

"The recession is very likely over at this point," Bernanke said in responding to questions at the Brookings Institution.

http://www.msnbc.msn.com/id/32858855/ns/business-economy_in_turmoil

"Good and bad, I define these terms
Quite clear, no doubt, somehow.
Ah, but I was so much older then,
I'm younger than that now."

 

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Re: Daily Digest - September 15

The biggest and most secretive gathering of ships in maritime history lies at anchor east of Singapore. Never before photographed, it is bigger than the U.S. and British navies combined but has no crew, no cargo and no destination  -  and is why your Christmas stocking may be on the light side this year

http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html

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Re: Daily Digest - September 15

Hello Anton:

I'll email him, I saw that last night/this moring around 1am when I had a chance to do more than skim the artilce that I posted. In the book IOUSA it was 53 trillion or 55 trillion for Social Security and Medicare A and D, then I saw on usdebtclock.org that it has gone up to I think 50 trillion.

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Re: Daily Digest - September 15

I'm not advocating this, but Karl Denninger made me laugh out loud when I read this today!

http://market-ticker.org/archives/1436-60-Day-Insurance-Only-Lease-Program-GM.html

DavidC

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Re: Daily Digest - September 15

if we add so many caveats when we say the recession is over, then I wonder what the meaning of a recession is anymore. If we have a technical end of the recession where GDP is simply inflated but actual economic activity does not increase, aren't we just fooling ourselves? I think it's a bit contradictory to say things like "jobless recovery" or to talk about how difficult times will be for the next few years even though the recession is supposedly over now.

With the track we're on, this might be the very last time, we have the political will to even admit we entered a recession in the first place. What other euphemisms or cloudy obfuscations can we think of to further confuse the masses?

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Re: Daily Digest - September 15

Hi, This is my first post, although I have followed your site for over a year now.

The reason I have raised my head today, is that I have just noticed, that on the same day the Governor of the Bank of England, Mervyn King, and Ben Bernanke, have announced that the recession is over in both of our respective countries.

Now I am a real novice in financial matters, but even I can see that some sort of collaboration must have occurred, for these announcements to be on the same day! The cycles of differing countries just cannot be matched so closely!

This just adds to weight of information you have provided, that significant forces are at work to manipulate what we think.

Thank you Chris for your information, it helps me think independantly!

 

 

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Re: Daily Digest - September 15
Mike Pilat wrote:

What other euphemisms or cloudy obfuscations can we think of to further confuse the masses?

Hope and Change? 

Wait, we are reaping the consequences of those who signed up for that plan.

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Re: Daily Digest - September 15

You know, without wanting to sound partisan (I suppose I am, but not for THE party), I entertain the possibility that the present adminstration might, in the long run, be a very good thing for this country if it leads to an awakening of just how screwed up our political system has become. Because so many staked so much in Obama to fix things and because thus far it is becoming more widely recognized that "change" hasn't really materialized, I have hope - hope that people will start thinking for themselves and not following the demagogues.

The bad cop / good cop Bush / Obama seamless transition should be a signal to Americans that actions still speak louder than words. Although the language has changed, the actions have not. The only change Obama can really begin to claim is his desire for healthcare "reform." But wait, wasn't it Bush that reformed us right into Medicare D, plunging us $8 Trillion more in the hole? So how much different are the ambitions of the current administration? Was it Obama that criticized the Bush / Cheney torture machine, only to co-opt the new legal power he now has as a result (think Patriot Act)? Was it the Bush / Paulson corporate cronyism that bailed out the Wall Street banks, or was it the reappointed Bernanke / Turbo Tax Timmy duo? Was it Bush that caused job losses or was it Obama that failed to create new ones while spending us deeper into debt? Was it Bush that gave Gitmo its reputation or was it Obama that (still) has failed to eliminate it? Was it Bush that started the wars or Obama that is ramping up Afghanistan? Are the "distinctions" too blurry to see? Regardless of what our ideologies may be, I find have to squint very hard to see meaningful changes in actions.

Let's make this simple: under the White House's present budget assumptions our official Federal Debt will be over $20 Trillion by 2020. This doesn't include any of the unfunded liabilities. This is debt I "can believe in."

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Re: Daily Digest - September 15

Yep. I actually heard someone say we may experience a triple 'U' shaped recovery. Thats just a long recession or depression isn't it?!

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Re: Daily Digest - September 15

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Re: Daily Digest - September 15
anton95 wrote:

Speaking of truth.....

From Jim Quinn's article

Social Security & Medicare    
Unfunded Liabilities    
(Trillions of dollars)    
 

2008

2009

Social Security $15.8 $17.5
Medicare Part A $34.7 $36.7
Medicare Part B $34.0 $37.0
Medicare Part D $17.2 $15.6
Total $101.7 $106.8
Source: 2009 Trustee Report

 

 

 

From the 2009 Trustee Report on Medicare:

 

Table V.D2.—Present Values of Projected Revenue and Cost Components of 75-Year Open-Group Obligations for HI, SMI, and OASDI

(In trillions, as of January 1, 2009)

Revenue and expenditure categories

HI

SMI

OASDI

Combined

Revenues from public:

Payroll and benefit taxes

$12.0

$37.2

$49.2

Premiums

0.0

$7.2

7.2

Other taxes and fees1

1.0

1.0

Total

12.0

8.2

37.2

57.4

Total expenditures to public

25.8

32.5

44.9

103.2

Net Results for Budget Perspective

−13.8

−24.3

−7.7

−45.8

Revenues from other government accounts:

Transfers

0.0

24.2

0.0

24.2

Interest credits

n/a

n/a

n/a

n/a

Total

0.0

24.2

0.0

24.2

Trust fund assets on January 1, 2009

0.3

0.0

2.4

2.7

Net Results for Trust Fund Perspective

−13.4

−0.1

−5.3

−18.8

 

The 2009 trustee report shows a NPV of minus -45.8 trillion for medicare A B and D (which is an updated version of the older number CM uses in the Crash Course).

Jim Quinn shows minus -89.3 trillion.  Big difference. 

 

Here is the email response from Jim, I'll email Chris and see if he can weigh in on this as well. It means that the www.usdebtclock.com is off if this is correct, it means that our debt is weigh the heck north of what I was estimating.....I don't know what Medicare's parts are, perhaps B is funded and that is why we aren't seeing it in the debt clock, I have NO idea.

Take care

I know. I had thought it was $66 trillion. I took that chart directly from the 2009 Social Security Trustee Report. I was shocked when I saw it. Just google 2009 Trustee Report and it is in there. 

I think it might have to do with Parts A, B, D, Social Security, and Medicaid. It could depend on which of those you are talking about.

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Re: Daily Digest - September 15

A few weeks ago I saw the $107 trillion number used. Here's the info.

Richard Fisher from the Dallas Fed in May of 2008 said our unfunded liabilities were $99 trillion

"Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.

I want to remind you that I am only talking about the unfunded portions of Social Security and Medicare."

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Re: Biggest and Most Secretive Gathering of Ships...

Wow Greg, that was an extremely informative piece.  Thank you so much for posting.  Another fine example of why this site is so necessary.

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Re: Daily Digest - September 15

Hello SaxPlayer00o1:

Well if it is 107t and not 60t then we can add another 12t in public debt and another 12-24 in bailouts so rough back of the envelope here we are talking about 131t-143t...

That is well north of what I have seen or heard from many of the sources I respect. Could become most interesting.

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Re: Daily Digest - September 15

Daveyuk,

In case you missed it, watch Newsnight on the BBC iplayer.

Nobody thinks that this is anywhere near over!

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Re: Daily Digest - September 15

Davos,

the difference here is between an unfunded liability and a debt.

The debt of the US stands at some $11.7 trillion.

The unfunded liabilities of the entitlement programs is now nearly 10 times larger.

In household terms, your car load is a debt, your child's future college expenses are an unfunded liability (assuming you've not saved for them at all and plan to pay them).

Again, the debt of the US is $11.7 trillion.

The unfunded liabilities are another $107 trillion.

Together they form a thoroughly unpayable amount so it's not even worth adding them up into one larger figure.

Best,
Chris Martenson

 

 

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Re: Daily Digest - September 15

GRAIN | "Against the grain" | 2009 | CGIAR joins global farmland gr

It was probably just a matter of time before the international agricultural research establishment would get caught up in the current scramble for land being waged by a number of governments and corporate investors to secure food supplies abroad. After all, that is where a lot of money tagged for “food security” is going these days: on a raft of new projects to acquire and develop huge areas of land for offshore farming. GRAIN identified over 100 such deals, most of them triggered by the food and financial crises, late last year.1 Six months later, the International Food Policy Research Institute (IFPRI) estimated that, indeed, 15–20 million hectares (ha), mostly in Africa and Asia, had recently been leased, bought up or were under negotiation to produce food for foreign shores.2 The World Bank plunged into a major study on the issue, to be finalised by the end of 2009.3 Land grabbing has even become a feature of most official food security policy discussions at the highest political levels this year, including the G8, the African Union and the UN General Assembly.

...

Call for GCC 'land grab' policy to stop - experts - Politics & Economics - ArabianBusiness.com

Agricultural experts have called for a halt to moves by Gulf investors to snap up foreign land, amid claims that poor nations are losing much-needed farmland in a calculated land grab.

According to the International Food Policy Research Institute (IFPRI), a Washington-based think-tank, up to 20 million hectares of cultivable farmland – roughly a fifth of all the agricultural land in the European Union - has been acquired since 2006, at a value of up to $30bn.

...

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Re: Daily Digest - September 15
cmartenson wrote:

Davos,

the difference here is between an unfunded liability and a debt.

The debt of the US stands at some $11.7 trillion.

The unfunded liabilities of the entitlement programs is now nearly 10 times larger.

In household terms, your car load is a debt, your child's future college expenses are an unfunded liability (assuming you've not saved for them at all and plan to pay them).

Again, the debt of the US is $11.7 trillion.

The unfunded liabilities are another $107 trillion.

Together they form a thoroughly unpayable amount so it's not even worth adding them up into one larger figure.

Best,
Chris Martenson

Hello Chris:

Thanks for the reply, I had gathered that from a video you did, perhaps the one on Public Telivision, maybe it was a podcast, perhaps a post.

Actually, my question was worded poorly. After your piece a while back I understand that the liabilities can be gotten rid of by sticking it to the recipients and retracting or abolishing the program.

My question is: Puplava, www.usDebtClock.com and many other sites, the book IOUSA list everything as follows: 11.8 t in national debt, 60 trillion in Social Security and Medicare Parts A and D, and 12-24 trillion in bailouts and stimulus. Grand total somewhere north of 80 trillion.

This "new" figure alone dwarfs what is out there, putting the grand total north of 130t.

So I was questioning the validity of this new figure or the validity of the old figures. Just wondering how bad bad is.

Take care

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Re: Daily Digest - September 15

Davos

That $99 trillion quote from Fisher and the graph of the CPI from 1800 to 2005 here were the two

biggest things to get me to start getting out of the U.S. dollar.

Now add that to the $51 trillion in debt that we already have and I think that we might have

a little problem.

So, then we mix in the $592 trillion in derivatives and I think the economy might be doing this.

 

By the way, my compliments on the news updates and posts on this site.

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Re: Daily Digest - September 15

The difference is in the methodologies used for estimating the liabilities portion, specifically the time horizon used.

The SS trust fund uses an infinite horzin resulting in the $100+ trillion figure whielthe Treasury has long used a 75 year horizon to dericve a figure in the vicinity of $60 trillion.

The Federal Reserve, Fisher I believe used this figure in several speeches in 2008, uses something much closer to the SS trust fund method as they've been talking about a $99 trillion figure for some time.

Without getting caught in a debate over which methodology is more correct, they all result in an insolvent US.  Full stop.

Discuss.

Well, heck, what's to discuss?  How broke we are?

Best,

Chris Martenson

 

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US Credit Shrinks @ Great Dep Rate - Ambrose Evans Prichard

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-cr...

Click link for full article

US credit shrinks at Great Depression rate prompting fears of double-dip recession

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

Professor Tim Congdon from International Monetary Research said US bank loans have fallen at an annual pace of almost 14pc in the three months to August (from $7,147bn to $6,886bn).

"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness."

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M3 money supply

I thought the Fed stopped tracking M3 money supply years ago?  So how was Mr. Congdon able to determine the M3 is contracting at that level?

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Re: M3 money supply

That's exactly what I was asking myself.  As George Costanza's father would say, "Serenity Now!!".

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Davos
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Re: Daily Digest - September 15

Even if it is contracting the debt and the unfunded liabilities are, IMHO, going to toast the dollar.

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JAG
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Serenity Now

FB,

Thanks for the Prichard post. If there is any truth to it, I guess its a good thing that M3 is no longer reported.

Davos,

I thought you might like this pic:

"The Dollar is Toast"

Can you have deflation and a currency crisis at the same time? Serenity Now!!!!!!!!!!

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Davos
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Re: Daily Digest - September 15

Hello Jag:

You made my night, thanks take care

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SagerXX
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Re: Daily Digest - September 15
Mike Pilat wrote:

You know, without wanting to sound partisan (I suppose I am, but not for THE party), I entertain the possibility that the present adminstration might, in the long run, be a very good thing for this country if it leads to an awakening of just how screwed up our political system has become. Because so many staked so much in Obama to fix things and because thus far it is becoming more widely recognized that "change" hasn't really materialized, I have hope - hope that people will start thinking for themselves and not following the demagogues.

Hope that people realize that they haven't finished their work when they pull the lever.  In fact, it's just begun.  Hope that they understand that really, there's no hope for change unless the change is something that they are personally doing, something they're personally making happen in the world at large, something they are watching happen in front of their very own eyes. 

Beyond that, 'tis just CNN/Fox/WishfulThinking ("Oh look honey, 2 million people teabagged Washington!")...

Localize. 

Viva -- Sager

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idoctor
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Re: Daily Digest - September 15

Jim Rogers we need less regulations CNBC 14 Sept 2009

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dcm
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Re: Daily Digest - September 15

Bank reform without Glass Steagall

Give me a break

Sager the Soothsayer

Localize

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idoctor
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Re: Daily Digest - September 15

How is Jim Rogers Investing in this slow economy CNBC14 Sept 2009

Four Major Developments Gold Investors Should Watch

http://seekingalpha.com/article/161487-four-major-developments-gold-investors-should-watch?source=email

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Damnthematrix
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"Capitalism: A Love Story,"

From Toronto to Pittsburgh to Jay Leno, "Capitalism" Marches On

Tuesday, September 15th, 2009

Friends,

It hasn't quite hit me that "Capitalism: A Love Story," my new film, will be opening in theaters in New York and L.A. just one week from tomorrow. And everywhere else on October 2nd. Is it already the fall?

Having spent the last year and a half living pretty much under the radar and quietly putting together this movie for you, it is heartening, to say the least, to read the early reviews where Time Magazine called it "Moore's magnum opus," the Los Angeles Times has declared it my "most controversial film yet," and Variety has said that "Capitalism: A Love Story" is "one of Moore's best films." Wow. Honestly, I didn't know what to expect, considering this film is an all-out assault against the racket polite people like to call "Wall Street."

My crew and I had one thought in mind while we were filming "Capitalism": What if the powers-that-be refuse to give us funding for the next movie after they see what we've put in this one?! And if that was the case, knowing that this documentary might be our last one for a while, what would we want to make sure we put in this film? That's a heavy thought, I know, but we did, indeed, set about making this movie and giving it everything we got, with an attitude that said loud and clear: "Take no prisoners!"

The film is now completed and we left our world premiere at the Venice Film Festival with two of its prizes! "Capitalism: A Love Story" won the Leoncino d'Oro award, given to one film each year by a jury of young adults in Venice (they call it their "youth prize," meaning we were the top film among the young people at the festival). We were also awarded The Open Prize, given to the film that best honors the art of cinema (a group of Italian artists participating in the Venice Biennale hand out this cherished prize).

Then, this past Sunday night, we landed in Canada for the North American premiere of "Capitalism: A Love Story" -- and again, the film was met with wide critical acclaim and thunderous applause at the screenings (no, it wasn't just the sound of Canadians trying to keep their hands warm).

But it wasn't till last night, at the annual convention of the AFL-CIO in downtown Pittsburgh, PA, that a packed house of rank-and-file union members -- plumbers and nurses and steelworkers and 73 other trades -- watched the U.S. premiere of our film and, I kid you not, the roof practically came off the place as the credits rolled. I've never witnessed, in my 20 years as a filmmaker, such a response to one of my movies. I'm sure the theater management must have been thinking a riot was going to break out. After years of having the crap kicked out of working people of this country, the crowd in Pittsburgh was ready to rumble after watching two hours of cinema that laid it all out about how Corporate America has gotten away with murder. I was profoundly moved by this overwhelming and enthusiastic response. I simply can't wait to bring this movie to your town and for you to see it! I know you will be shocked and surprised by a lot of what you will see in it. Once again, I've set out to show you things the nightly news doesn't dare show you. There will be some very wealthy men who will not be happy about this film's release. So be it. It's a free country, but more importantly, it's OUR country. It doesn't belong to the richest 1% who now -- are you ready for this -- have more financial wealth than the entire bottom 95% of the country combined!!

Last night Jay Leno premiered his new prime time show on NBC. His in-studio guest was Jerry Seinfeld. Tonight (Tuesday), for his second show, his guest is... me! I know -- that's crazy. My friends are taking bets on the exact hour today the executives at G.E. will call and pull the plug on this insanity. Or not.

Assuming that doesn't happen, I invite you to tune in at 10pm ET/PT, 9pm CT/MT. I'll show, for the first time on national TV, a scene from the movie -- and I might have another surprise for you.

Well, I've landed in L.A. and it's time to get ready for the big show tonight. Thanks for all your support of my work in these past 20 years. I hope, together, we can make change happen in the coming months. That's what the majority voted for. That's what we all deserve.

AND NO BACKING DOWN ON UNIVERSAL HEALTH CARE - THE INSURANCE COMPANIES MUST GO!

That's all for now, my friends.

Yours,
Michael Moore
[email protected]
MichaelMoore.com

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idoctor
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Re: Daily Digest - September 15

David mentions Chris Martenson in this Interview.

David Tice on King World News Sept 14 2009

 1.

 2.

 3.

 4.

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JAG
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Re: "Capitalism: A Love Story,"

Before I say this, know that I'm strictly apolitical and I have never, nor will I ever, vote in my life. That being said....I Can't Wait to Watch Moore's Latest Documentary !!  

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Damnthematrix
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Re: Daily Digest - September 15

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html

US credit shrinks at Great Depression rate prompting fears of double-dip recession

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

By Ambrose Evans-Pritchard, International Business Editor
Published: 11:59PM BST 14 Sep 2009

"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness."

Similar concerns have been raised by David Rosenberg, chief strategist at Gluskin Sheff, who said that over the four weeks up to August 24, bank credit shrank at an "epic" 9pc annual pace, the M2 money supply shrank at 12.2pc and M1 shrank at 6.5pc.

"For the first time in the post-WW2 [Second World War] era, we have deflation in credit, wages and rents and, from our lens, this is a toxic brew," he said.

It is unclear why the US Federal Reserve has allowed this to occur.

Chairman Ben Bernanke is an expert on the "credit channel" causes of depressions and has given eloquent speeches about the risks of deflation in the past.

He is not a monetary economist, however, and there are indications that the Fed has had to pare back its policy of quantitative easing (buying bonds) in order to reassure China and other foreign creditors that the US is not trying to devalue its debts by stealth monetisation.

Mr Congdon said a key reason for credit contraction is pressure on banks to raise their capital ratios. While this is well-advised in boom times, it makes matters worse in a downturn.

"The current drive to make banks less leveraged and safer is having the perverse consequence of destroying money balances," he said. "It strengthens the deflationary forces in the world economy. That increases the risks of a double-dip recession in 2010."

Referring to the debt-purge policy of US Treasury Secretary Andrew Mellon in the early 1930s, he added: "The pressure on banks to de-risk and to de-leverage is the modern version of liquidationism: it is potentially just as dangerous."

US banks are cutting lending by around 1pc a month. A similar process is occurring in the eurozone, where private sector credit has been contracting and M3 has been flat for almost a year.

Mr Congdon said IMF chief Dominique Strauss-Kahn is wrong to argue that the history of financial crises shows that "speedy recovery" depends on "cleansing banks' balance sheets of toxic assets". "The message of all financial crises is that policy-makers' priority must be to stop the quantity of money falling and, ideally, to get it rising again," he said.

He predicted that the Federal Reserve and other central banks will be forced to engage in outright monetisation of government debt by next year, whatever they say now.

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idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - September 15

Trader Talk With Art Cashin

http://www.cnbc.com/id/15840232?video=1254501406&play=1

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Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest - September 15

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html

US credit shrinks at Great Depression rate prompting fears of double-dip recession

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

By Ambrose Evans-Pritchard, International Business Editor
Published: 11:59PM BST 14 Sep 2009

"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness."

Similar concerns have been raised by David Rosenberg, chief strategist at Gluskin Sheff, who said that over the four weeks up to August 24, bank credit shrank at an "epic" 9pc annual pace, the M2 money supply shrank at 12.2pc and M1 shrank at 6.5pc.

"For the first time in the post-WW2 [Second World War] era, we have deflation in credit, wages and rents and, from our lens, this is a toxic brew," he said.

It is unclear why the US Federal Reserve has allowed this to occur.

Chairman Ben Bernanke is an expert on the "credit channel" causes of depressions and has given eloquent speeches about the risks of deflation in the past.

He is not a monetary economist, however, and there are indications that the Fed has had to pare back its policy of quantitative easing (buying bonds) in order to reassure China and other foreign creditors that the US is not trying to devalue its debts by stealth monetisation.

Mr Congdon said a key reason for credit contraction is pressure on banks to raise their capital ratios. While this is well-advised in boom times, it makes matters worse in a downturn.

"The current drive to make banks less leveraged and safer is having the perverse consequence of destroying money balances," he said. "It strengthens the deflationary forces in the world economy. That increases the risks of a double-dip recession in 2010."

Referring to the debt-purge policy of US Treasury Secretary Andrew Mellon in the early 1930s, he added: "The pressure on banks to de-risk and to de-leverage is the modern version of liquidationism: it is potentially just as dangerous."

US banks are cutting lending by around 1pc a month. A similar process is occurring in the eurozone, where private sector credit has been contracting and M3 has been flat for almost a year.

Mr Congdon said IMF chief Dominique Strauss-Kahn is wrong to argue that the history of financial crises shows that "speedy recovery" depends on "cleansing banks' balance sheets of toxic assets". "The message of all financial crises is that policy-makers' priority must be to stop the quantity of money falling and, ideally, to get it rising again," he said.

He predicted that the Federal Reserve and other central banks will be forced to engage in outright monetisation of government debt by next year, whatever they say now.

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RedShift
Status: Bronze Member (Offline)
Joined: Sep 6 2008
Posts: 25
Obama Banking Too Much On Banks

From:  http://www.motherjones.com/politics/2009/09/obama-banking-too-much-banks

By Nomi Prins

On Monday—one year after the once-mighty Lehman Brothers collapsed in the nation’s biggest bankruptcy—President Obama addressed the state of the economy and again outlined his proposals for what he calls reform. The location—Federal Hall at 26 Wall Street, near the New York Stock Exchange and New York Federal Reserve Bank—was fitting. George Washington took his presidential oath there, a precursor for how intertwined Washington and Wall Street would become. And Obama’s speech indicates that he’s still making the grave error of mistaking the health of Wall Street for the health of the American economy.

Read the rest at:  http://www.motherjones.com/politics/2009/09/obama-banking-too-much-banks

On Monday—one year after the once-mighty Lehman Brothers collapsed in the nation’s biggest bankruptcy—President Obama addressed the state of the economy and again outlined his proposals for what he calls reform. The location—Federal Hall at 26 Wall Street, near the New York Stock Exchange and New York Federal Reserve Bank—was fitting. George Washington took his presidential oath there, a precursor for how intertwined Washington and Wall Street would become. And Obama’s speech indicates that he’s still making the grave error of mistaking the health of Wall Street for the health of the American economy.

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