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    Daily Digest 6/25 – The Illusion Of The Perpetual Money Machine, BofA Whistleblower Was “Told To Lie”

    by DailyDigest

    Tuesday, June 25, 2013, 3:23 PM

Economy

Turbulent times ahead: Q&A with economist Didier Sornette (RZ)

The prediction of 21st May 2013 concerning the US market and subsequent developments illustrate that markets are largely driven by political events. For instance, the US market developed in lockstep with the Nikkei after the Governor of the Bank of Japan, Haruhiko Kuroda, announced the massive quantitative easing (QE) in Japan, in the beginning of April 2013.

The Illusion Of The Perpetual Money Machine (RZ)

We argue that the present crisis and stalling economy continuing since 2007 are rooted in the delusionary belief in policies based on a “perpetual money machine” type of thinking. We document strong evidence that, since the early 1980s, consumption has been increasingly funded by smaller savings, booming financial profits, wealth extracted from house price appreciation and explosive debt.

The Banker Who Was God (Ilene)

James Howard Kunstler commented on the Fed’s dilemma, “If the Fed were to reduce its purchases of this debt paper, nobody else would buy it. The reason the Fed buys the quantity it does in the first place ($85 billion-a-month) is that nobody else would touch it at the offered zero interest rates. The US Treasury and the mortgage bundlers could only sell the stuff if they paid higher interest rates. But the US government would choke to death on higher interest rates because its aggregate debt is so huge and the scheduled interest payments so gigantic that a one percent increase would destroy even the fantasy of economic equilibrium.”

Bank of America whistle-blower’s bombshell: “We were told to lie” (Wendy SD)

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.

Alberta flooding could wipe $2-billion from Canadian economy in June (westcoastjan)

Preliminary estimates of damages range between $3-billion and $5-billion, BMO analyst Tom MacKinnon said in a note to clients Monday. Losses after insurance could reach $3.75-billion, he said.

Bell accused of breaking labour law with unpaid interns (westcoastjan)

“Bell’s Professional Management Program (PMP) is a voluntary training program for post-secondary students, recent graduates and those in career transition,” said a statement from Bell spokesman Albert Lee.

“Participants get the opportunity to learn in a corporate environment with advanced technology and support from management and the Bell Mobility team.”

David Stockman: Market Downturn A Global Adjustment To Fed Easing (Nervous Nelly)

A Fiscal Train Wreck (Phil H., from 2003)

How will the train wreck play itself out? Maybe a future administration will use butterfly ballots to disenfranchise retirees, making it possible to slash Social Security and Medicare. Or maybe a repentant Rush Limbaugh will lead the drive to raise taxes on the rich. But my prediction is that politicians will eventually be tempted to resolve the crisis the way irresponsible governments usually do: by printing money, both to pay current bills and to inflate away debt.

Environment

Is Deep Sea Mining Worth The Risk? (Meilen L.)

There are 4kg of gold for every person on the planet buried in the sea, but
mining operations could pollute the ocean floor and destroy the fragile
eco-systems present. So, is deep sea mining worth the risk?

Gold & Silver

Click to read the Gold & Silver Digest: 6/24/13

Provided daily by the Peak Prosperity Gold & Silver Group

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

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9 Comments

  • Tue, Jun 25, 2013 - 3:30pm

    #1

    saxplayer00o1

    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3132

    Italy could need EU rescue within six months, warns Mediobanca

    Headlines:

    Italy could need EU rescue within six months, warns Mediobanca
    Georgia Postpones $157 Million Debt Sale as Yields Rise
    Italy's two-yr debt costs soar to highest since Sept. 2012
    Portugal Yields Need Draghi to Keep His OMT Promise
    Portugal may need more easing on budget goals: PM
    Pennsylvania Has Worst Spread Since ’10 on Pensions: Muni Credit
    Cyprus says not seeking re-work of debt bailout, but tweaks
    Illinois's bond sale rated A- with negative outlook
    Spanish Retail Slump Keeps Growth Hope Pinned on Exports
    Li’s Cash Squeeze Risks 1st China GDP-Goal Miss Since ’98

     

     

     

     

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  • Tue, Jun 25, 2013 - 4:53pm

    #2
    Chris Martenson

    Chris Martenson

    Status: Platinum Member

    Joined: Jun 07 2007

    Posts: 5113

    Bank of America sleeze and criminality

    That article on BoA should be read by everyone.
    I wonder if this time perhaps maybe some criminal charges will finally result. Not holding my breath but that's what *should* happen.

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  • Tue, Jun 25, 2013 - 5:54pm

    #3
    RogerA

    RogerA

    Status: Bronze Member

    Joined: Jun 18 2009

    Posts: 66

    There is now rule of law , it is law of rule.

    Boa is peanuts.

    Al Martins - The conspirators

    Government whistleblower Al Martin, a retired US Navy Lt. Commander, explains the interactions of criminal corporate and government networks. He tells the facts and names the names no one has dared write or publish before.
    "The Conspirators" is the hidden history of government fraud and corruption.
    Al Martin's eyewitness accounts include first hand knowledge of US Government sanctioned narcotics trafficking, illicit weapons deals and an epidemic of fraud -- corporate securities fraud, real estate fraud, banking fraud and insurance fraud.

    Also. Sibel Edmonds - Classified woman.
            Cheri Seymour - The last circle.

    Todays Max Kaiser Report today fits here as well.
     

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  • Tue, Jun 25, 2013 - 6:07pm

    #4
    RoseHip

    RoseHip

    Status: Bronze Member

    Joined: Feb 05 2013

    Posts: 145

    If we convict them wouldn't our government be implicit?

    Recently Head of State John Kerry asking China and Russia to follow the rule of law and turn over NSA whistleblower Edward Snowden, and government officials clearly not willing to follow that same rule of Law in 2008 crash. I call that cherry picking the rule of law! And now here we are again with this BoA article outlining serious potential rule of law violations, its policy in one corner and rule of law in the other. Wait does Policy have brass nuckles? And why does rule of law look so beaten up? and wait who is the referee? He looks strangely familliar......

    Rose

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  • Tue, Jun 25, 2013 - 6:08pm

    #5
    Doug

    Doug

    Status: Platinum Member

    Joined: Oct 01 2008

    Posts: 1390

    BofA tactics

    I misspent a couple years of my youth travelling on carnivals.  The kinds of tactics described in the affidavits contained in the BofA article were standard procedures in the more rigged games on the midways.  They were occasionally shut down and operators even arrested at times.  They didn't understand.  They needed to go for much larger sums of money.  They would have been immune from prosecution and could have made a lot more money.  Maybe some went on to get MBAs, business suits and hired by BofA.  Same class of folks.

    Doug

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  • Tue, Jun 25, 2013 - 10:30pm

    #6

    saxplayer00o1

    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3132

    Speaking of bankers

    Headlines on Anglo Irish

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  • Tue, Jun 25, 2013 - 11:16pm

    #7

    Arthur Robey

    Status: Platinum Member

    Joined: Feb 03 2010

    Posts: 1814

    Economics is my weak spot.

    Economics is my weak spot. There are too many people talking about money and that makes them lie.

    But this is how I see things. Your government has had the wool pulled over their eyes. As we said in the army "Bulldust baffles Brains".

    They were told that there was this massive crisis that required the people to take on a large amount of debt so that the great bastion and stalwart of Democracy and Freedom, the so-called Federal Reserve of America could start the printing presses.

    Would you, the people signing for the debt, get to spend it as you want? Of cause not.

    More, (how you say?), bulldust from our boys from academia. It has to go to the Banks. The banks play fast and loose with the citizens' assets, their homes, and deliberately drive them out the door, causing a glut of empty houses and a huge pent up demand for housing. But who has got the money to buy them up? The Banks!

    Why would the banks allow you to own the asset when they could rent it to you? And in this day of your transparency the banks know exactly to the last penny, how much to squeeze you for.

    Fweedom and Democracy?

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  • Wed, Jun 26, 2013 - 10:31am

    davefairtex

    Status: Member

    Joined: Sep 03 2008

    Posts: 2039

    BOFA criminality

    I certainly agree, I hope this is prosecuted by someone, somewhere, and that these guys all get to wear orange jumpsuits at the end of the day.  Its tragic that it takes a civil case to uncover criminal behavior these days - because the shareholders are the ones that pay the price, while the executives collect their bonuses and stock options and walk off into the sunset.Those executives knew exactly what they were doing.  Its sociopathic behavior, and I'm really tired of our justice system giving them a pass.
     

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  • Wed, Jun 26, 2013 - 12:17pm

    Grover

    Grover

    Status: Gold Member

    Joined: Feb 15 2011

    Posts: 733

    BofA Regulators

    The regulators were supposed to be regulators. Where were they when all this was going on with BofA? I hope some of them end up in orange jumpsuits as well.Grover

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