Tech-Savvy Egyptians Get Message Out

 

Mubarak Speaks, Dissolves One Crony Government, New Crony Government To Be Named Tomorrow

Submitted by Tyler Durden on 01/28/2011 17:17 -0500

The Egyptian president (?) is speaking liverecorded (unclear from where). Somewhere, the Bernank is rehearsing the very same speech. Long, meandering speech, whose conclusion is that government is at fault. The government will be sacked and be replaced with new government tomorrow. Long Riot futures.

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Guest Post: America Needs Community, Not Collectivism

 

The Great Debt Shift.
Here is a quote: "Two of the world's largest economies, the EU ($16 trillion) and the US ($14 trillion), have become the leading practitioners of private-to-public debt shifting. The US has assumed the debts of banks, insurers, mortgage holders, and even entire industrial sectors. The European Union has done the same for entire states. The resulting public debt levels are, predictably, placing strains on both the dollar and the euro. Worse still, the bailouts have created a spirit of apathy toward debt accumulation. Western governments have embarked on a debt binge for the ages. Already, the credit ratings of the United States and some of the EU's core countries, such as France and the UK, are being questioned. While this socialization of private debt has created deep citizen resentment, it remains to be seen whether political pressure is enough to hold back the tide..."

In The News Today

Posted: Jan 28 2011     By: Jim Sinclair      Post Edited: January 28, 2011 at 9:07 pm
Filed under: In The News

Jim Sinclair’s Commentary
Three so far this week.

Bank Closing Information – January 28, 2011 These links contain useful information for the customers and vendors of these closed banks.
FirstTier Bank, Louisville, CO
Evergreen State Bank, Stoughton, WI
The First State Bank, Camargo, OK

http://www.fdic.gov/



Jim Sinclair’s Commentary
Things in Egypt continue to crumble.

Mubarak Dismisses Egypt’s Government January 28, 2011 | 2241 GMT
Egyptian President Hosni Mubarak in an address broadcast on state television Jan. 28 said that he has dissolved the government and will form a new government Jan. 29. In other words, Mubarak is not stepping down.
Changing the political face of the government is unlikely to pacify Egyptian protesters. Mubarak is undoubtedly the primary target of the demonstrations. The crisis in Egypt is thus far from over. The military still appears to be the main power broker in the country, and Mubarak’s fate is likely in the hands of his generals. Mubarak’s appeal to stay and the hours-long delay in making this speech could be a negotiated step between the two sides, but the potential for more direct and overt military intervention remains extremely high. Chief of Staff of the Armed Forces Lt. Gen. Sami Annan is expected to return to Cairo by Jan. 29 and next steps by the military are likely to be discussed then.
The announcement was strategically made in the middle of the night in Egypt to give time for troops to take position. The military’s interaction with the demonstrators will need to be watched closely. So far, the military has been able to move into the cities and has been welcomed by the protesters without employing the more heavy-handed tactics of the internal security forces. What order they imposed came not from violence but from the perception that they would enable the demonstrators to bring down Mubarak.
More…




Jim Sinclair’s Commentary
Apparently everyone reads Trader Dan.

World Grows Jittery About American Debt By URI FRIEDMAN | January 28, 2011 11:22am
The U.S. received two stern warnings Thursday that it needs to get its fiscal house in order, and quickly. Moody’s, the credit rating agency, cautioned that it may need to downgrade its AAA-rating of U.S. debt sooner than expected, while the International Monetary Fund argued that America must tackle its mounting debt and confront thorny issues like entitlements if it wants to maintain its credibility in global markets. Moody’s AAA rating is its top designation, but the agency pointed out that the U.S. has the highest ratio of government debt to government revenue of any AAA-rated country.
The rebukes came a day after a congressional projection placed this year’s federal budget deficit at a post-World War II record of $1.5 trillion. It also came on the same day that another credit-rating agency, Standard & Poor’s, downgraded Japan’s bond rating from AA to AA- out of concern that the country isn’t making a credible effort to control its spiraling debt. During his State of the Union address, President Obama proposed deficit-reduction measures like freezing domestic spending, but critics accused him of skirting the painful spending cuts or tax increases needed to truly rein in the national debt.
How seriously should we take the threats issued by Moody’s and the IMF?
Moody’s Warning Could Spook Foreign Investors, notes Bloomberg’s Christine Richard: "The threat of a lower rating may cause international investors to avoid U.S. assets. About 50 percent of the almost $9 trillion of U.S. marketable debt is owned by investors outside the nation."
If Japan Was Downgraded, U.S. Could Be Next, maintains Time’s Michael Schuman: "Anything you can say about Japan you can say about the U.S.–and more. Unlike Japan, the U.S. is not a creditor nation, nor does the populace save enough. Despite talk of a more conservative approach to spending, the U.S. has no credible plan for reining in its deficits and debt."
U.S. Debt Will Be Downgraded, argues Douglas McIntyre at 24/7 Wall St: "The US is doomed to suffer a downgrade in its debt before its begins the hard work on restructuring Social Security, Medicare and Medicaid. A downgrade may not even be enough of a shock to bring Americans to their senses. They have paid for their entitlements and they believe they deserve them."
Downgrade Unlikely But Potentially Disastrous, explains The Washington Post’s Howard Schneider. The U.S. still has the world’s largest economy and reserve currency, Schneider reminds us. Yet, "however unlikely, a downgrade in U.S. debt or loss of confidence in the government’s ability to repay its creditors could touch off a catastrophic series of events–from a shutdown of global trade finance and credit to the collapse of banks and governments that hold large amounts of U.S. debt and depend on the flow of money through and from the United States to stay afloat."
More…