Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Thurs 11.12.2009
Lou Dobbs Says He's Leaving CNN
Lou Dobbs to Quit CNN Lou Dobbs, the longtime CNN anchor whose anti-immigration views have made him a TV lightning rod, said Wednesday that he is leaving the cable news channel effective immediately. “Some leaders in the media, politics and business have been urging me to go beyond my role here at CNN and engage in constructive problem-solving,” Mr. Dobbs said just after 7 p.m., suggesting that he would remain involved in the civic discourse, but perhaps not on television. “I’m considering a number of options and directions,” Mr. Dobbs added.
What gall! These people who are RUINING our country are clueless as to the will of the people. . . speak up, America!
Pelosi hopes to finish health bill as 'Christmas present' All House Speaker Nancy Pelosi (D-Calif.) wants for Christmas is healthcare reform. The speaker told constituents yesterday that she wants to finish health reform as a "Christmas present" for the country. "I'm hopeful that we will have a bill as a Christmas present for the American people," Pelosi said, according to KCBS. "But we will have a bill and it will be soon." That desire comes as her second-in-command, House Majority Leader Steny Hoyer (D-Md.) outlined a new schedule that could keep the House in session until late December -- shortly before the holiday recess -- to finish health reform legislation.
pt 1/2 Gerald Celente on Lew Rockwell 09-11-2009
pt 2/2 Gerald Celente on Lew Rockwell 09-11-2009 2nd American Revolution has begun. . .
Golden spike: Boom times for precious metal Go-go gold: Latest record prices confound predictions, have Americans turning in heirlooms The new gold rush is on. The price of the precious metal is soaring, hitting a record $1,119 an ounce on Wednesday -- confounding market analysts who thought there was no way gold would remain so expensive when it first cracked the unheard-of $1,000 mark last year. The remarkable run has implications far beyond savvy investors. In New York's diamond district, more people started showing up late last year to sell their gold, and the crush hasn't let up, said Anthony Iannelli, owner of Iannelli Diamonds.
Gold surges to a record high The precious metal jumps to settle at an all-time high as the U.S. dollar declines Gold jumped to an all-time high Wednesday as the dollar depreciated, fueling demand for the metal as a hedge against the anemic greenback. December gold climbed $12.10 to settle at a record high of $1,114.60 an ounce after hitting a record trading high of $1,118.60 an ounce earlier in the session. "Overall we're still seeing strong investor interest," said Carlos Sanchez, precious metals analyst at CPM Group, adding that gold's recent rally has attracted many "short-term market participants."
What's Gold's Next Stop? After hitting our first upside target of $1,110 two days ago, gold prices backed off but still managed to close at their best levels today for a new record high close in New York basis the spot gold. The question now is, what's going to happen to gold after it hit our first target level? The main trend continues to be positive and I believe that any pullback in this market should be met with good support. It is possible that we could see a pullback of $20-$25 which would not change the overall positive trend of the market which we see continuing until the end of the year. As readers of this blog know, we have an upside target zone of $1,250-$1,300 an ounce for gold. While that target zone is still in place, we believe that the huge "energy field" that we've discussed in our earlier gold videos is capable of pushing this market higher.
Gold Keeps on Surging, Hits New High of $1,119 The price of gold surged to a fresh high Wednesday as the dollar fell to a 15-month low. Gold futures for December delivery jumped to as high as $1,119.10 an ounce on the New York Mercantile Exchange in morning trading, then slipped back to settle at $1,114.60, up $12.10 from Tuesday's close. Commodities including gold have been rising as the dollar has dropped. Gold's latest advance came as the dollar fell after Federal Reserve officials reiterated that the central bank will keep interest rates low for an extended period to support the economic recovery.
Gold Price Won’t Drop Below $1,000 an Ounce Again, Faber Says Gold won’t fall below $1,000 an ounce again after rising 27 percent this year to a record as central banks print money to help fund budget deficits, said Marc Faber, publisher of the Gloom, Boom & Doom report. The precious metal rose to all-time highs in New York and London today as the dollar weakened. The Dollar Index, a gauge of value against six other currencies, has declined 7.9 percent this year and today fell to a 15-month low. News last week of bullion purchases by the Indian and Sri Lankan governments raised speculation that other countries would follow suit.
If the Gold Price Explodes, Silver Will go SuperNova! How Will Niagara Falls Fit Through a Garden Hose? “There’s no doubt in my mind that we’ll have a mania in gold. And because the gold and especially silver markets are so tiny, the rush into them will be like trying to push the contents of Hoover Dam through a garden hose. Our positions will go absolutely ballistic."
Gold Continues to Gain Against All Currencies THE PRICE OF GOLD rose to fresh record highs against the US Dollar for the fifth session in six in early London dealing on Wednesday, recording an AM Gold Fix above $1114 an ounce. Up by more than 28% for 2009 to date for US investors, gold also rose against all other currencies, breaking its best level against the Japanese Yen since July 2008 above ¥3220 per gram as world stock markets gained, government bonds held steady, and crude oil ticked higher from $79 per barrel.
Hong Kong Mercantile to Offer Gold Futures Contract The Hong Kong Mercantile Exchange aims to start a gold futures contract by January, the company’s maiden offering as it seeks to take advantage of rising investor demand in the metal, which traded today at a record. “We foresee Hong Kong establishing benchmark pricing of gold in the Asian time zone,” Chairman Barry Cheung said today at the Foreign Correspondents’ Club in Hong Kong. “Priorities changed” from an initial plan to begin business with a fuel-oil contract amid a shift in customer interest, Cheung said.
Barrick shuts hedge book as world gold supply runs out Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world's top producer Barrick Gold. Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run. "There is a strong case to be made that we are already at 'peak gold'," he told The Daily Telegraph at the RBC's annual gold conference in London. "Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore," he said.
Dollar’s Drop Lifts Shares, Gold and Oil It was supposed to be a quiet day on Wall Street: the bond market was closed for Veterans Day, and there were no economic reports on the calendar. But the news that the dollar had weakened to a 15-month low set off a chain reaction that, by the end of Wednesday, had energized three pillars of the nation’s economy — stocks, gold and oil. Wall Street indexes climbed higher, led by gains in financial stocks, while the price of gold reached another record and oil prices continued to rise. The dollar dropped to its lowest level since 2008 and ended the day just below $1.50 against the euro, at $1.4976. Persistently low interest rates in the United States have meant meager returns for currency traders, who earn more when rates are high, leaving them looking to the booming stock markets for more lucrative payoffs.
2010 Gold Stock Boom Gold has just breached US$1100 after a strong move following the purchase of 200 tonnes of gold bullion by the Reserve Bank of India from the International Monetary Fund. This overhang had been troubling "ye of little faith" observers of gold. The same day the Reserve Bank of Australia raised rates by 0.25% whereas many had factored in a 0.5% rise so the AUD temporarily dropped with the gold surge - and away went the gold stocks Down Under too. Gold has been languishing in AUD terms as our currency strengthened over these past few months but I see some positive signs ahead.
Toxic Cocktail of Fiscal and Monetary Constraints on the U.S. Dollar Last week, the Fed extended its emergency economic powers, which include lending to the money center banks at zero interest. A few days later, the Fed's plan was reinforced by similar announcements from the rest of the G-20. The road map the authorities are providing for the near-term global economy can't be much clearer. There will be no cessation of the seemingly endless supply of cheap dollars being pumped into the financial system. With the world apparently in complete accord on the need for ever more liquidity, stock markets are staging an easy-money rally. The main line media is almost euphoric. But what should investors make of this seemingly good news?
pt 1/3 Ron Paul: The worst is yet to come | Interview on KWN Congressman Ron Paul of Texas is the originator of the audit the Fed bill and a champion of liberty in the United States. If there is a modern day version of our founding fathers it is Congressman Paul as he has never voted for a bill unless it was consistent with the US Constitution. He has fought for lower taxes, abolishing the Fed, preserving our Republic and freedom from oppressive and enlarged government.
Geithner: wants strong dollar, will tackle deficit U.S. Treasury Secretary Timothy Geithner said today he believes strongly in the need to maintain a strong dollar and said the United States was determined to get its budget deficit down. The dollar's decline has been a source of concern in the export-heavy region, especially since top exporter China keeps its currency's value closely managed against the U.S. dollar and so felt less impact on prices for its exports than other Asian nations that let their currencies float freely.
Money, Inflation and Uncertainty Three decades ago, I was visiting a friend. He was a graduate of the Harvard Business School. He was beginning a successful career as an entrepreneur. We were outside, watching his son play. His son was about five years old. "Robbie," he said, "why does daddy have to go to work every day?" "To buy money," Robbie replied. "No, Robbie. I go to work to earn money."
Dollar May Fall on ‘Dovish’ Fed Policy Makers The dollar may extend its decline after Federal Reserve speakers delivered “dovish” statements yesterday, indicating they are concerned that unemployment will continue rising, according to BNP Paribas SA. “Any effort to stabilize the dollar in the short term can only come from the Fed via verbal intervention, threatening to hike interest rates early if required,” BNP Paribas analysts led by Hans-Guenter Redeker in London wrote in a research note today. Yesterday’s speeches indicated that “Friday’s release of the weak October labor-market report impacted Fed thinking.”
Pound Falls After King Says Weaker Currency Will Help Recovery The pound declined by the most in almost three weeks against the dollar after Bank of England Governor Mervyn King said a weaker currency should lead to a recovery in the economy. Sterling fell against all 16 of its most-traded peers tracked by Bloomberg and government bonds erased earlier declines after the bank said inflation will stay below its 2 percent target for most of the next three years. Policy makers are seeking to boost exports and may extend their asset-purchase program to pull Britain out of its longest recession on record.
Canada’s Dollar Advances to Highest Level in Almost Three Weeks Canada’s dollar rose to the highest level in almost three weeks against its U.S. counterpart after reports in China showed the economy is advancing, burnishing the global growth outlook and spurring stock and commodity gains. The Canadian currency appreciated to C$1.0433, the strongest level since Oct. 22. Gold rallied to a record, crude oil topped $80 a barrel and the Standard & Poor’s 500 Index touched a 13-month high. The Canadian dollar tends to rise and fall with stocks and commodity prices.
pt 2/3 Ron Paul: The worst is yet to come | Interview on KWN
Pound Pessimism at Highest Since March on Economy Investors turned pessimistic on the pound for the first time since April on speculation that the Bank of England will keep interest rates at a record low into the second half of 2010, a survey of Bloomberg users showed. The U.K. currency will fall and gilt yields rise over the next six months, according to respondents in the Bloomberg Professional Global Confidence Index. The 1,558 participants remained optimistic about the global economy for a fourth consecutive month.
Euro-Put Premium Signals Doubt About Rally Lower demand for call options on the euro relative to put options is sending a signal that traders may doubt the currency can continue to gain against the dollar, according to Brown Brothers Harriman & Co. The euro rose 18 percent versus the greenback since March 4, when it reached its low for the year of $1.2457 as investors sought safe assets. The 16-nation currency touched $1.5063, the high for the year, on Oct. 26 as investors increased holdings in riskier assets.
Recession Upends German Zeal for Fiscal Prudence It has come to this: Germany will almost certainly have a bigger budget deficit next year than Italy will. Traditionally, Germany is the Continent’s keeper of fiscal rectitude, perpetually fretting that the Italians and other free-spending Southern Europeans are about to undermine the euro and rekindle inflation by not reducing their red ink. But in 2010, the German deficit is expected to total 6.5 percent of its gross domestic product, while the Italian gap is forecast at 6.2 percent of G.D.P., according to Deutsche Bank.
China Signals That It May Allow Currency to Rise Against Dollar China sent its clearest signal yet that it was ready to allow yuan appreciation after an 18-month hiatus, saying on Wednesday it would consider major currencies, not just the dollar, in guiding the exchange rate. In its third-quarter monetary policy report, the People's Bank of China departed from well-worn language on keeping the yuan "basically stable at a reasonable and balanced level." It hinted instead at a shift from an effective dollar peg that has been in place since the middle of last year.
Made in China a tough sell Chinese adapt to changing economic climate U.S. orders have been hurt by the economic crisis, so the Asian nation's manufacturers are targeting emerging markets such as Latin America With 190,000 foreign buyers roaming 12 million square feet of showroom floor, Sandy Wang hoped there would be plenty of orders for her company's steel-toe work boots and leather loafers. But despite recent signs of an uptick in global trade, Wang's booth at the Canton Fair saw little action. There were plenty of lookers, she said, but few takers. "Things will never be the same again," said Wang, who has seen her U.S. orders drop 20 percent in the last year. "We're all very worried." As President Barack Obama prepares for his trip to China this weekend, the anemic Chinese economy could complicate his push to "rebalance" the global economy.
pt 3/3 Ron Paul: The worst is yet to come | Interview on KWN
China’s Economy Strengthened in October, Boosting Yuan Calls China’s industrial production and trade surplus climbed in October, indicating a strengthening recovery in the world’s third-largest economy that’s likely to increase pressure on policy makers to let the yuan appreciate. The figures came days before leaders from the Asia-Pacific region gather in Singapore, and a visit by U.S. President Barack Obama to Beijing, where he plans to raise China’s currency policy. Premier Wen Jiabao has so far rebuffed pressure to loosen reins on the yuan, awaiting a bigger rebound in exports in an effort to secure social stability and job gains.
China's economic miracle is a fragile one Edmund Conway says that the country's leaders risk creating the same type of asset bubble that floored Japan. Every economist has a favourite fact about the Chinese economy. Mine is this: every month the country generates so much surplus cash from trade that it could afford to go out and buy three of Britain's biggest companies – say, British Telecom, Rolls Royce and J Sainsbury. Every single month. The £9.8 billion that Kraft proposed this week to spend on Cadbury's? China could have generated that much in little over a week – not funny money, but cold hard cash. Should it decide to go out and spend, it could afford any company it wanted – Google, Goldman Sachs, RBS. Only, it has more sense.
Rand May Breach 7.20 Resistance, Absa Says South Africa’s rand is poised to extend this year’s 27 percent rally to beyond the 7.20 resistance level within the next two weeks, according to Barclays Plc-owned Absa Capital. “The rand’s strengthening trend is still in place and we expect it to move to 7.20 and stronger,” Judy Padayachee, a Johannesburg-based technical analyst at Absa, said by telephone. “The 7.20 level is actually quite a conservative estimate.”
Rodriguez Says Venezuela Studying Bolivar Devaluation Venezuelan Finance Minister Ali Rodriguez said the government is “cautiously” studying a devaluation of the country’s bolivar, which has been pegged at the same rate for more than four years. “The issue of when a devaluation may be needed is being studied cautiously,” Rodriguez said today in a speech at an event in Caracas. “A devaluation would immediately worsen the inflation problem even more.”
Colombia’s Peso Rises as Controls Ruled Out; Bolivar Falls Colombia’s peso climbed after global stocks advanced and the government said it won’t seek capital controls. The peso strengthened 0.2 percent to 1,965.45 per U.S. dollar at 3:37 p.m. New York time, from 1,969.35 yesterday. “The stock advances in the U.S. is the driver today,” said Felipe Munoz, a trader at Bogota-based brokerage Corredores Asociados SA. The Standard & Poor’s 500 Index rose 0.5 percent to a 13-month high.
pt 1/2 Obama is in bed with Wall Street just like Bush; Peter Schiff
Brazil Real May Rally 10% to 10-Year High Brazil’s real, the best-performing major currency in the world this year, may rally 10 percent to a 10-year high because government measures aren’t enough to stem gains, said Phil Roberts, a technical analyst at Barclays Plc. The real will take out a decade high of 1.5545 per dollar reached in August 2008, a month before global credit markets seized up, Roberts said. He said that should the real begin to falter and decline to 1.7810 per dollar, it would signal that the rally that began in March would be ending.
Global Confidence Dips as Policy Makers Begin Exit Strategies Confidence in the world economy dipped in November as central banks’ actions to withdraw some emergency measures sparked concern about the strength of the recovery, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index fell to 60.3 from 61.7 in October, the highest level in the series that began two years ago. The index exceeded 50 for a fourth month, which means there were more optimists than pessimists.
FedSpeak Translation - There Is No Recovery Yet more BS Fedspeak, this time in the mainstream media: In separate speeches, Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that rising unemployment could crimp consumers, restraining the recovery. Consumer spending accounts for about 70 percent of economic activity. That's because there is no real economic recovery at all. So why is the stock market up so much?
Under Attack, Fed Chief Studies Politics With the Federal Reserve under more intense attack than at any time in decades, Ben S. Bernanke, the professorial chairman of the central bank, was schooled last month in how to handle the increased political demands of his job. For months, he had warned — without anyone on Capitol Hill appearing to listen — that a seemingly innocuous bill to let Congress “audit” the Fed would gravely threaten the central bank’s independence. It was alarming enough that the bill’s author was Representative Ron Paul, the quixotic Texas Republican whose new book, “End the Fed,” had just landed on the best-seller lists. Despite vigorous protests by Mr. Bernanke, nearly 300 House lawmakers and 30 senators had endorsed Mr. Paul’s bill.
Fed Officials Say Recovery Will Be Hampered by Unemployment The U.S. economy will be slow to recover from the deepest recession since the 1930s as rising unemployment curbs consumer spending, Federal Reserve officials said. San Francisco Fed Bank President Janet Yellen raised the prospect of a “jobless recovery” in a speech in Phoenix, while Dennis Lockhart, who heads the Atlanta Fed, predicted a “relatively subdued pace of growth” this quarter and beyond.
King Gives BOE Leeway as Bernanke, Trichet Signal Move to Exit Bank of England Governor Mervyn King is keeping the door open to more emergency policy action just as his counterparts suggest they’re ready to rein it in. King said today he has an “open mind” on further bond purchases as he presented higher forecasts for economic growth and consumer prices. He signaled the central bank may still have room to expand its asset-buying program from the 200 billion pounds ($331 billion) currently planned because inflation will undershoot the 2 percent target in the two-year policy horizon.
pt 2/2 Obama is in bed with Wall Street just like Bush; Peter Schiff
Fed Faces Biggest Blow to Authority in Dodd Proposal The Federal Reserve faces the biggest blows to its authority and independence in five decades under legislation championed by its lead overseer in the U.S. Senate. The financial-regulation overhaul proposed yesterday by Senator Christopher Dodd would strip the Fed of its role as a bank supervisor and give Congress a greater voice in naming the officials who set interest rates. The measure opens the door to interference from politicians who might disagree with any move by the Fed to raise rates from record lows, former central bank officials said.
Bill gives Fed new power to police risk The Federal Reserve stands to gain substantial new authority under financial reform legislation, despite increasing skepticism from lawmakers in both parties over the central bank’s unchecked powers over the U.S. economy. Under the final piece of the House reform package being assembled by Financial Services Committee Chairman Barney Frank, the Fed would join seven other regulators to form an oversight council to police financial firms that threaten the stability of the banking system. But the Fed is the only member that would be empowered to carry out the restrictions the council imposed on risky big companies — giving it more power than the other regulators, some policy experts say.
Critics question Dodd's reform proposal Senate banking committee Chairman Christopher J. Dodd proposed a major overhaul of the government's financial regulatory system Tuesday, calling for bolder changes than the House and the Obama administration are seeking. The measure - which aims to prevent another economic collapse, protect consumers and dismantle failing institutions - is likely to win significant support among voters who blame the economic downturn on Wall Street greed.
Prepackaged Bankruptcies Tripled in Past Year The number of so-called "prepackaged" bankruptcy filings has tripled this year, as troubled companies increasingly try to work out issues with creditors before bankruptcy, a study showed on Monday. The number of prepackaged bankruptcies has risen to 30 so far in 2009, compared with just 10 in the same period in 2008, according to an analysis from BankruptcyData.com. "The days of long, protracted 'traditional' chapter 11 filings seemed to have gone the way of more out-of-court or pre-negotiated filings, Jeffery Stegenga, a managing director at turnaround advisory firm Alvarez & Marsal said in a statement. "The costs under Chapter 11 protection are simply too great and, in many cases, the overall process is too disruptive."
Defaults as Prepackaged Bankruptcies Show Bondholder New Normal When Euramax International Inc. was struggling in 2008 amid the worst economic crisis since the Great Depression, lenders to the building-materials maker reorganized its debt to prevent a collapse. By forming creditor committees earlier, an out-of-court restructuring for the Norcross, Georgia-based company allowed lenders to receive a full recovery, Chief Financial Officer Scott Vansant said yesterday. The average recovery rate through bankruptcy may be as little as 35 percent of face value this year, according to Moody’s Investors Service.
Commercial Real Estate ‘Crisis’ Looming for U.S “A crisis of unprecedented proportions is approaching” in the U.S. commercial real-estate market, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC. The CHART OF THE DAY displays quarterly returns on commercial property -- apartment buildings, hotels, industrial sites, offices and stores -- as compiled by the National Council of Real Estate Investment Fiduciaries. Returns were negative for the past five quarters, the longest streak since 1992.
The Commercial Real Estate Crash Debunks The Myth Of Predatory Lending The crash in commercial real estate completely debunks the myth of predatory lending. In a lot of accounts of the housing bubble, predatory lending has been made to play the demon role. Allegedly, unscrupulous non-bank mortgage shops went wild during the housing bubble, taking advantage of home buyers by putting them into mortgages they couldn't afford. . . . But the disaster in commercial real estate shows just how wrong this is. Commercial real estate loans weren't made to unsophisticated buyers. It's not like the people buying office parks, huge urban towers or shopping didn't understand the terms of their loans. Yet 55 percent of commercial commercial mortgages that will come due before 2014 are underwater.
Foreign-Currency Buyers Making Huge, Bulk Purchases Of Distressed Florida Condos Interesting report from CondoVultures: A newly created Miami corporation paid $223 per square foot - a 44 percent discount off of the average closed sales price in the project - for 34 units in the 3030 Aventura condominium in Northeast Miami-Dade County, according to a new report from Condo Vultures® LLC. The units acquired in bulk represent 76 percent of the 45-unit project built in 2007 at 3030 NE 188th St. with seven stories and 89,000 square feet of saleable space fronting a canal in the city of Aventura.
Illinois foreclosures spike in October Almost 20,000 foreclosures in October, the most since tracking began in 2005 Foreclosure filings nationally dropped in October for the third consecutive month, but that wasn't the case in Illinois, which had the highest number of monthly filings, almost 20,000, since RealtyTrac began tracking foreclosures in January 2005. Illinois' 56 percent spike in filings, as compared with September, largely is the result of a state law adopted in the spring that gave distressed borrowers extra time to seek help to save their homes. The grace period may have created a temporary lull in filings. Last month alone, initial default notices were sent to 12,659 Illinois homeowners, according to RealtyTrac, an online marketplace of foreclosed properties. That equates to one in every 263 homeowners.
Budget disasters loom in 10 states A study released Wednesday warns that nine states are barreling toward an economic disaster similar to California's ongoing fiscal crisis, which has been marked by IOUs and budget-busting deficits. The budget woes could mean higher taxes, accelerated layoffs of government employees, more crowded classrooms and fewer services in the coming year for some of the nation's most populous states. Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California as those most at risk of fiscal calamity, according to the report by the Pew Center on the States.
Applied Materials to cut 1,300 to 1,500 jobs Applied Materials 4Q net income falls 40 pct, cuts 1,300 to 1,500 jobs Applied Materials Inc. said Wednesday that fiscal fourth-quarter net income fell by 40 percent and announced it would cut 1,300 to 1,500 jobs to save money as it grapples with a business downturn. The chip equipment maker said the job cuts represent 10 to 12 percent of its global work force and are part of a restructuring plan to save $450 million a year. That's in addition to the $460 million in cost cuts it achieved in fiscal 2009, which ended Oct. 25.
Zoellick: Unemployment Will Hobble U.S. Economy Stubbornly high joblessness threatens to trigger loan defaults and drag on consumption next year, hobbling a U.S. economy struggling to rebound from recession, World Bank President Robert Zoellick said Wednesday. Zoellick warned that the U.S. unemployment rate, which jumped to a 26-year high of 10.2 percent in October, will likely remain elevated in 2010. "You're going to have problems with delinquencies of credit card loans, consumer loans, people won't be able to pay their mortgages," Zoellick told reporters in Singapore. "Some banks are going to continue to be troubled by bad loans."
Rosenberg: Here's Why Unemployment Is Going To 13% Earlier this week, Gluskin-Sheff economist David Rosenberg grabbed headlines when he said unemployment could go as high as 13%. Today he spells out his reasoning: There are serious structural issues undermining the U.S. labor market as companies continue to adjust their order books, production schedules and staffing requirements to a semi-permanently impaired credit backdrop. The bottom line is that the level of credit per unit of GDP is going to be much, much lower in the future than has been the case in the last two decades. While we may be getting close to a bottom in terms of employment, the jobless rate is very likely going to be climbing much further in the future due to the secular dynamics within the labor market that need to be discussed:
Obama to make statement on economy on Thursday U.S. President Barack Obama will make a statement about job creation and economic recovery on Thursday before leaving on his debut presidential tour of Asia, the White House said on Wednesday. Obama will speak at 9:15 a.m. EST (1415 GMT) at the White House. "The president will discuss his plans to continue exploring options for job creation and economic growth and the importance of his trip to Asia to the American economy," said Jen Psaki, a White House spokeswoman.
Conservative seniors' group targets House Dem yes votes The 60 Plus Association, a conservative seniors' group, has pledged to spend $1.5 million targeting 15 House Democrats who voted for health care reform. “This bill adds hundreds of entitlements and only cuts one — Medicare. By voting 'yes,' these members betrayed seniors and the best interests of their district,” said Jim Martin, the group's president. “I hope the senators in these states take note of the senior anger while they are deciding how to vote on this important legislation.”
Pomeroy North Dakota seniors explaining why Rep. Pomeroys vote for the House Health Care Reform Bill is bad for seniors because it cuts Medicare by $400 billion, and bad for their children and grandchildren because it saddles them with debt.
Clinton Warns Senate on Failure as Health-Bill Timeline Slips Former President Bill Clinton warned senators against repeating history and failing to act quickly on an overhaul of the U.S. health system even as top lawmakers suggested that Congress won’t finish work this year. “It’s not important to be perfect here, it’s important to act, to move, to start the ball rolling,” Clinton told reporters after speaking to Senate Democrats on Capitol Hill yesterday. “The worst thing to do is nothing.” Senate Majority Leader Harry Reid is trying to bridge differences over whether the plan should include a new government-run insurance program, whether it should require employers to cover workers and how to pay for covering tens of millions of uninsured Americans. Related issues including abortion are also slowing down work in the chamber.
The Lords of Entitlement Perpetual redistribution through the welfare state Speaker Nancy Pelosi defied policy logic and public opinion late Saturday night, ramming through the House a nearly 2,000-page health-care leviathan that counts as the biggest expansion of the federal government since the New Deal. As President Obama likes to say, this was a "teachable moment" about America's current government. The vote was 220 to 215, with 39 House Democrats joining all but one Republican in opposition. Mrs. Pelosi had to cajole and bribe her way to the magic 218, and the list of her promises must be stacked to the ceiling.
Stupak warns foes they're 'playing with fire' Opponents of an House amendment barring federal funding for abortion are "playing with fire," the amendment's author cautioned. Rep. Bart Stupak (D-Mich.), the lawmaker who attached a controversial amendment to the House's health reform bill this past weekend, defended his provision and signaled he'd press forward with it. "We are in contact with senators to make sure our language holds," Stupak told the Detroit News. "The other side is playing with fire."
Don't pay for health care reform on the backs of our seniors Seniors have sacrificed, but Congress wants to cut a half trillion from Medicare to pay for "health care reform, which will hurt older Americans. Worse, Congress doesn't even want to apply this new plan to themselves.
The Absolutely Worst Bill Ever "The Worst Bill Ever." That is the title the always calm and rational Wall Street Journal put on its editorial on November 1 about the government health care takeover bill that passed the House last week on virtually a party line vote, 220-215. But even this label doesn't fully communicate the outright assault on the American people involved in this legislation. The bill is a serious threat not only to your freedom and prosperity, but to your very life as well. That is because at the heart of this bill is a cruel perversion. The bill labors mightily (though it actually fails) to expand insurance coverage to everyone (taking the most expensive route possible). But then it is devoted to taking away the very health care that you may need to save your life, or the life of a loved one. Pelosi's Death Panels The bill would create 118 new federal boards, bureaucracies, commissions, and programs, which as a group have the power to ration and deny you health care. These are the Pelosi death panels. They include the Health Choices Administration, the Health Benefits Advisory Committee, the Health Insurance Exchange, the Public Health Insurance Option, the Center for Comparative Effectiveness Research, the Comparative Effectiveness Research Commission, the Accountable Care Organization Pilot Program, the Community Based Medical Home Pilot Program, the Independent Patient Centered Medical Home Pilot Program, and many others.
Vatican Engineered Victory for Pelosicare In a story about why the U.S. Catholic Bishops have embraced Democratic-style universal health care, the Los Angeles Times noted that the Roman Catholic Church considers healthcare a basic human right, "a position the church has articulated since 1963, when it was included in a papal encyclical by Pope John XXIII." Indeed, healthcare is declared a right in the "Peace on Earth" encyclical. That is also the basis of Obamacare. The group Catholic Democrats has hailed passage of H.R. 3962, the Affordable Health Care for America Act of 2009, and notes that the only House Republican voting for it, Representative Joseph Cao of Louisiana, is a Catholic and former Jesuit seminarian. "The Catholic Church has been at the forefront of advocating for health care as a right for decades, including pastoral letters issued by the U.S. Conference of Catholic Bishops (USCCB) in 1981 and 1993," the group notes.
Reid eyes payroll tax hike on wealthy Majority Leader Harry Reid is considering a plan for higher payroll taxes on the upper-income earners to help finance health care legislation he intends to introduce in the Senate in the next several days, numerous Democratic officials said Wednesday. These officials said one of the options Reid has had under review would raise the payroll tax that goes to Medicare, but only on income above $250,000 a year. Current law sets the tax at 1.45 percent of income, an amount matched by employers. It was not known how large an increase Reid, D-Nev., was considering, or whether it would also apply to a company's portion of the tax. President Barack Obama has said he will not raise taxes on wage earners making less than $250,000.
America's Real Victim Class Many middle-class families are too "rich" to qualify for the federal healthcare subsidy yet scarcely wealthy enough to afford the government bite required to fund the massive new program Pity the parents who have two children and earn $89,000 per year. They are members of America’s last true victim class—the unsubsidized ones. These are the Americans who pay for every thing the federal government does but receive in return only those general benefits that derive from the few federal activities that actually serve the common good - such as incarcerating terrorists at Guantanamo or securing our borders against illegal aliens. Obamacare will bring a big, expensive surprise for these unsubsidized ones.
Judge Napolitano: Health Care Bill Will Destroy American Liberty!
Health reform supporters have 'herd mentality,' Dem opponent says Lawmakers who voted for a health reform bill in the House last Saturday suffer from a "herd mentality," said a Democrat who opposed the legislation. Rep. Gene Taylor (D-Miss.), a conservative Democrat who is at times critical of his party's leadership, accused leaders in Congress of hailing the health reform vote as historic in order to gin up support for the bill. “They always say this is a historic vote to get people caught up in what I refer to as the herd mentality,” Taylor told a Mississippi NBC affiliate. “The herd starts walking one way and they almost can always get the herd to do what they want and i was not a part of that herd."
Reid puts House healthcare bill on Senate calendar Senate Majority Leader Harry Reid (D-Nev.) late Tuesday laid the groundwork for the Senate's healthcare reform debate to start next Tuesday. Reid filed a motion to introduce the bill on Monday, Nov. 16. Anticipating a Republican objection, the bill would be pushed onto the Senate calendar. "A motion to proceed to the bill would be in order the next legislative day," said Reid spokesman Jim Manley. In doing so, Reid heeded the advice of former President Bill Clinton, who visited Senate Democrats Tuesday at their weekly caucus lunch and urged them to move quickly to pass health reform. Clinton imparted lessons from his own attempt during his presidency, in 1993, and said Democrats should be prepared to compromise but should act with speed.
Challenger’s exit could clear way for Tea Party vs. Bennett Conservatives have turned to Florida as the central front in their battle with the GOP establishment, but the battle for the Republican Senate nomination in Utah could emerge as the real Tea Party contest. State Attorney General Mark Shurtleff’s exit from the race last week paved the way for other candidates to emerge. Though none of them hold statewide offices, or even local ones, they do appear to stand a better chance of luring conservative activists. Those activists happen to be the group Sen. Bob Bennett (R-Utah) has problems with, and they play an outsized role in the nominating process.
Obama pushes for changes in Afghan strategy options President Barack Obama pushed his Afghan war council Wednesday for revisions in strategy options presented to him before he will go ahead with a final decision on boosting troop levels in Afghanistan, a senior U.S. official said. Facing increasing U.S. public skepticism over the eight-year-old war, Obama asked his top advisers to clarify how and when U.S. troops will shift security responsibility to the Afghan government, the administration official said.
Obama wants his war options changed President Barack Obama does not plan to accept any of the Afghanistan war options presented by his national security team, pushing instead for revisions to clarify how and when U.S. troops would turn over responsibility to the Afghan government, a senior administration official said Wednesday. That stance comes in the midst of forceful reservations about a possible troop buildup from the U.S. ambassador in Afghanistan, Karl Eikenberry, according to a second top administration official. In strongly worded classified cables to Washington, Eikenberry said he had misgivings about sending in new troops while there are still so many questions about the leadership of Afghan President Hamid Karzai.
The Man Who Despises America The very next paragraph is going to make the nut jobs on the far left excitable beyond belief. I am not referring to all Democrats or even a majority of liberals. I am singling out the "they've-lost-all-touch-with-reality" crowd. This includes Media Matters for America led by the admitted hit-and-run, drunk-driving serial liar. The group includes the unshaven, bathrobe-clad unemployed who live in their mother's basement and are devout followers of MoveOn.Org. It is also the bitter, aging spinster working at the New York Times, the morbidly obese documentary film maker, and cable TV news' resident drama queen who hosts MSNBC's Countdown. They are about to simultaneously suffer from brain aneurisms. So without further delay, I'll say it. Barack Obama despises America. When people who voted for Obama in 2008 -- including registered Democrats -- start speaking in normal conversational voices at dinner parties, neighborhood gatherings and PTA meetings that the over-inflated ego from Chicago has it "in for America," then it's clear most reasonable people have reached the same conclusion.
From the Wilderness to the End of Civilization Why would someone go to a movie that is essentially an interview of someone else? Don't we go to movies to be entertained or watch documentaries in order to be inundated with voluminous information and breath-taking cinematography? What would compel anyone to sit for 82 minutes watching some guy chain smoking while he's being interviewed about the collapse of industrial civilization in a room that looks like a bunker? If incessant adrenalin rushes enhanced by stupefying special effects are what you desire, seeing "Collapse" should be postponed until you are ready to hear, see, and feel how Director Chris Smith's uncanny discernment is brilliantly conveyed in one of the most poignant, but inspiring movies of this decade.
Obama’s Media Control Strategy You may not have noticed that the Obama Administration, in addition to trying to seize control of the health care and energy sectors, is implementing a national "broadband plan" to redefine the media and transform America's system of government. It's designed, they say, to provide "open government and civic engagement." But it looks increasingly like an excuse for the federal government to control the Internet and access to information and even tell us what is truth. Norman Ornstein of the American Enterprise Institute recently explained at a Federal Communications Commission (FCC) "National Broadband Plan Workshop" that it is necessary to have "a common space with shared facts." Armed with $7.2 billion of "stimulus" money, the federal government is going to provide this. It looks like various progressive groups are lining up at the public trough for their share of the loot. They have in mind what the George Soros-funded Free Press calls "an alternative media infrastructure."
Obama 'hell-bent' on socialism Texas GOP Gov. Rick Perry accused President Barack Obama on Wednesday of “punishing” Texas and being “hell-bent” on turning the United States into a socialist country. Speaking at a luncheon for a Midland County Republican Women’s group, Perry said that “this is an administration hell-bent toward taking American towards a socialist country. And we all don’t need to be afraid to say that because that’s what it is.” Perry praised the tea party movement to the Republican activists in attendance, crediting the grassroots groups with discouraging some Democrats in Washington from pushing for a public option in the health care bill. “If you all think those tea parties didn’t work, then let me tell you something,” Perry said. “When they all came home in August for those town hall meetings, they got an earful. Then they went back to Washington, D.C. and the Senate voted that public option down in committee with a majority of Democrats in the Senate.”
End Clinton-era military base gun ban Foolish military gun controls left soldiers defenseless Time after time, public murder sprees occur in "gun-free zones" - public places where citizens are not legally able to carry guns. The list is long, including massacres at Virginia Tech and Columbine High School along with many less deadly attacks. Last week's slaughter at Fort Hood Army base in Texas was no different - except that one man bears responsibility for the ugly reality that the men and women charged with defending America were deliberately left defenseless when a terrorist opened fire.
Lies About the Climate Predictions of Climate Change Induced Natural Disasters Falling Flat Manmade climate change is said to present humankind with some of its greatest challenges in the planet’s history, not the least of which is an alarming increase in frequency and intensity of natural disasters. Massive flooding, super-powered hurricanes, endless tornado seasons and more have all been said to be the direst of consequences of global warming. In his movie An Inconvenient Truth, Al Gore famously proclaimed that, “Temperature changes are taking place all over the world and that is causing stronger storms.” Standing with Hurricane Katrina as a backdrop, the former vice president issued a cautionary tale of disaster in the making, all due to our irresponsible handling of the atmosphere. As recently as February Mr. Gore was giving a presentation showing flooding, drought and wildfires saying, “This is creating weather-related disasters that are completely unprecedented.”
North Korea warns South it will pay for clash North Korea said the South will pay "an expensive price" for firing at Pyongyang's retreating patrol boat on Tuesday, keeping up its saber rattling two days after a naval gunfight raised tension between the rivals. The threat, published in the North's official Rodong Sinmun daily, comes amid reports officials from the two Koreas met recently to discuss a possible summit between their leaders but failed to reach agreement.
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