Monday, May 12, 2008

Living The Lie




Liar Liar Pants On Fire

Edward Lazear, White House economist

Thu, May 8 2008, 09:38 GMT
Thomson Financial News -

"The data are pretty clear that we are not in recession."


Henry Paulson, U.S. Treasury Secretary

Wed, May 7 2008, 10:54 GMT
Thomson Financial News -

"The worst is likely to be behind us."


How do these jackasses sleep at night. Telling lies in public will only come back to haunt you. In the Spring of 2009 look for these two to be on the run from lynch mobs. We are clearly in a recession, and the worst is yet to come. Of course when you believe your own lies...it's easy to tell more of the same. The talking heads in this government have been lying to us repeatedly about the financial crisis America and the World has found themselves entangled in. How many times were we told the "sub-prime crisis" would be contained and that it would not effect the broader economy? When will the lies end?

Barrack Bin Laden, the now self ordained Democratic candidate for President of this doomed nation has repeatedly preached his "vision for change" in America. Though he gives few specifics, and offers only "buzz words", Mr Obama best be careful what he wishes for. I doubt the change this country has in store for it is going to be to anybody's liking. And if he's sitting in the big chair, he's going to be the one taking the blame for it.

Why anybody would want to be President of this sinking nation escapes me. Perhaps that explains the dearth of qualified candidates. [Ron Paul being the exception] Do any of these shills offer a thread of leadership with their candidacy? And if there is ONE thing this country lacks right now, it is leadership. I doubt any of these three rah-rahs could lead a cheer, let alone a nation destined for the scrapheap of history.

Quickly shiftying gears... I was getting cramps today from laughing as the headlines on Yahoo repeatedly suggested that stocks were higher because of "strength" in the Dollar and lower Oil prices. Yes, the Dollar was higher overnight in Asia, as it often is on Mondays...particularly if the close on the previous Friday was weak. By 10AM est the Dollar had given up it's .25 gain and had reversed itself into a .16 loss, a .41 reversal from it's morning high. Yet repeatedly as the day progressed, higher stock prices were attributed to a higher Dollar. The Dollar was in the RED for all but the first 40 minutes of trading on Wall Street today damn it! Oil prices were said to be down on a strong Dollar, yet the Dollar wasn't stronger at all. Do you think maybe they are taking this "strong Dollar" BS a bit to far in the press?

Oil is clearly overbought at these levels, and a reaction lower should be expected. Gold was weak today ONLY because Oil prices were soft. Will Gold prices slide if Oil prices slide? The Plunge Protection Team hopes so. Unfortunately that exact scenario my not occur. Gold appears poised to move higher in spite of any reaction in Oil prices. Besides, it's unlikely Oil prices fall very far. I am of the belief that the recent Goldman Sachs call for Oil to rise to 150-200 in the next two years was a contrary warning that a top in Oil prices is near, and Goldman Sachs has some futures contract they'd like to unload. The profits they make in Oil will quickly be moved into the Precious Metals as this months inflation's numbers arrive this week and shock the investment world. This weeks shocking inflation revelation may also set off a collapse in the Treasury markets as US Government Bonds are likely to be the next bubble to actually burst. And in doing so, throw ice water on the talking heads suggesting that it was the commodities bubble that was bursting. Far from it. The next leg up in commodities is now on our doorstep.


The Ticking Credit Card Time Bomb
Peter Schiff, Euro Pacific Capital, Inc.

It should be painfully obvious that expanded consumer credit is not evidence of improvement, but simply, deterioration. Unfortunately, when it comes to understanding the economy, there is little common sense on display. By going even deeper into debt just to make ends meet, American consumers are digging themselves, and our entire economy, into an even greater economic hole and laying the foundation for the next major credit debacle.

Soon, as credit card delinquencies rise and losses on pools of securitized credit card debt mount, those supplying the credit will finally get wise to the fact they will never get their money back. As a result the market for such debt will dry up even more quickly than did the market for subprime mortgages. Cards will therefore be much harder to come by and will have much lower limits then they do today. Limited to only the cash in their wallets, Americans will finally be forced to dramatically curtail their spending, and the recession will finally gather serious momentum.

http://news.goldseek.com/EuroCapital/1210358816.php

The crisis is only 1/3rd of the way to its solution
Bob Chapman, The International Forecaster

The credit crisis is over as Bernanke, Buffett, Paulson and Gross would have us believe. George Soros and Jamie Dimon say it is not over yet. We guess the bottom line is who’s solvent and who isn’t. The crisis is only 1/3rd of the way to its solution. If it’s over, why did the Fed, lower interest rates again and at the same time increase the amount of funds available to financial institutions? It is obvious Bernanke, Buffett, Paulson and Gross are lying. The situation is worse now than it was nine months ago. It was that banks would borrow short from central banks, but now it is up to 28 days for the Fed and we expect that to move to 90 days soon, and the ECB is lending short-term for a year and that is renewable for three years. You can bet these are permanent capital infusions. The banks will end up keeping the money or Treasuries and the central banks will keep the toxic waste that you will get to pay for. The banks and other financial institutions that are at the discount window and at the auctions secretly getting funds are insolvent. Not all of them, but at least half of them. Once it becomes known who is solvent and who’s not, the Illuminists will decide who is going under and who is not. The Illuminist banks will selectively be the only ones who attract capital. That is how they’ll cover up what they are doing. In July and August we will start to hear rumors of who is going under and who isn’t. All small and medium-sized banks, which are insolvent, will start to go under. That is why the FDIC called back 35 retirees to handle the 150 to 300 banks that are going down. The big question mark is will the public panic? We do not know, but there is a good chance they will whether its in Chicago or Frankfurt. Our advise is do not hold over $100,000 in any bank account, have $5,000 to $10,000 in small bills in cash in your safe at home. If you have and need liquidity for business or otherwise buy Swiss Franc government bonds. Own and take delivery of gold and silver coins, get out of your credit card and revolving debt, have freeze dry and dehydrated foods and a method of defending your family at your disposal. This could get very nasty if not now, later. The price of gold and silver will go exponential as will the coins and shares.


Opportunity on a Silver Platter
By Jim Willie CB

The bull market in commodities is not over. At best it will take a breather. My contention is that major US banks are speculating in the energy market in order to repair their broken balance sheets. Certainly Goldman Sachs is. The entire story line of the worst over for the USDollar and for the USEconomy is patently false. Just one more chapter of plain propaganda by the Wall Street community, the US Federal Reserve, and the USGovt. They are collectively worried to death, sweating bullets, even as precious capital blood has spilled in massive quantities. The entire US financial system has tragically turned insolvent. Inflation remains the only option left as an option, yet they cannot destroy the last standing asset group in USTreasury Bonds.

The most egregious backfire of banking flatulence has been the rise in long-term interest rates. This is precisely what the USFed does not want, since it provides substantial headwinds for the housing & mortgage market, via higher mortgage rates. The bond market, via USFed rebalancing, has properly priced the higher asset risk erosion from price inflation, as it should. Some have called this effect the next Bond Conundrum. Sure it is! In fact, the USTreasury complex is a maze of not just conundrums. It serves as a stark living breathing example of Goebbels (Nazi Information Minister) and Orwell (author of 1984) joined in a nightmarish marriage of deceit and fraud. The problem is that long-term bond yields should be over 10% since price inflation is even higher than that. Talk about an overvalued asset!!! The last buble to burst is not crude oil and gold with the supporting cast of commodities. It is the USTBond complex. Its prices are way way way out of whack. Sure, the USFed is trying to stimulate with lower rates. But why would any sane thinking person buy a USTreasury Bond when the real return is minus 7% to minus 8%?

_____________________________________


In corporate news, FedEx Corp. rose 63 cents to $91 after lowering its fiscal fourth-quarter earnings forecast, citing rising fuel costs.

MBIA Inc. posted a $2.41 billion first-quarter loss, as the struggling bond insurer took heavy charges to write down the value of liabilities amid continued deterioration in the credit markets. The stock rose 72 cents, or 7.6 percent, to $10.15 following comments from the company on the strength of its balance sheet.

First-quarter losses at wireless carrier Sprint Nextel more than doubled to $505 million, as it lost more monthly subscribers.

Mortgage lender IndyMac Bancorp swung to a first-quarter loss as credit markets continue to deteriorate.


Obviously, despite the losses, this was all fabulous news, as the stock indexes all rose today. Please, explain to me how a company at the center of the sub-prime mortgage crisis can post a $13 a share LOSS, and their stock can go up? Please, explain to me why stock indexes rise when the price of Oil is rising 25% in 4 weeks, and then attribute today's gains on a feeble pullback in the price of Oil from $126 to $124.50? And please explain to me these headlines that keep insisting that the Dollar has been rising. The Dollar closed lower today at 72.96, and it was the third day in a row that the Dollar has closed lower!





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