Archive for August 12th, 2009

Recovery to Nowhere

Wednesday, August 12th, 2009

Full story here from The International Forecaster.

“The Fed’s Wall Street bubble, as we forecast in January, will need at least $2 trillion more in 2010, if the economy is to just stay on an even keel. The massive debt liquidation particularly in banking, Wall Street and in insurance demands many more trillions of dollars. $23.4 trillion is not going to be enough. Presently the Fed is in the process of monetizing $2 trillion in Treasuries, Agency paper, such as Fannie Mae and Freddie Mac and collateralized debt obligations held by lenders. It is a secret what the Fed is paying for this almost worthless paper. Is it any wonder the public has lost trust and confidence in these players and our government? (more…)

Iceland is being blackmailed

Wednesday, August 12th, 2009

Story here. Written by Eva Joly who is investigating the breakdown crisis and looking for ways to get Iceland out of this mess. (Hint: it isn’t what’s already been suggested by Britain and the EU).

“From G8 to G20, many heads of state and government seem to delight in repeating that nothing will ever be the same again. The world is changing, to the point of being turned on its head by the crisis; the way we think and act in terms of financial regulation, international relations and development aid must therefore, according to them, change too.

However, numerous examples contradict all this big talk. The situation in which Iceland now finds itself following the implosion of its banking system and the emergency nationalisation of its three main banks (Kaupthing, Landsbanki and Glitnir) is undoubtedly one of the most significant of these examples. This small country of 320,000 inhabitants is now reeling under the weight of billions of Euros of debt, which has absolutely nothing to do with the vast majority of its population and which Iceland cannot afford to pay. (more…)

Concocting the appearance of recovery

Wednesday, August 12th, 2009

Full story here from Paul Craig Roberts.


“Last Friday a headline read: “U.S. Stocks Gain, Treasuries Drop as Unemployment Rate Declines”. 

Let’s have a look at the reported decline in the rate of unemployment. Do you believe that the US auto industry added 28,000 jobs in July amidst GM bankruptcy, sell-off and close-down of GM auto divisions, and demise of GM suppliers?  No?  Well, that’s what the Bureau of Labor Statistics reported. (more…)