We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Ron Paul: "The U.S. Government Must Admit It Is Bankrupt"

Submitted by Tyler Durden on 01/06/2011 17:58 -050

Any time you bring the two Pauls together in an interview, and start discussing items such as the debt ceiling, government spending, and monetary policy you know the results will be good. Sure enough, in this rare ABC interview with father and son, the sparks fly, and among the topic touched is the most popular story on Zero Hedge from yesterday, namely President Obama fabulous hypocrisy, who after bashing the debt ceiling as a senator 4 years ago, has bet the outcome of his entire economic policy on maxing out every single credit card available to him. Paul's response: "we have to face the fact that we are bankrupt and we can't pay our bills." Not exactly bedtime material if one's name is Hu Jintao. That said you know the Paul-led interrogation of Bernanke will be something else, even if it is ultimately totally fruitless.

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Hourly Action In Gold From Trader Dan

Posted: Jan 06 2011 By: Dan Norcini Post Edited: January 6, 2011 at 3:32 pm
Filed under: Trader Dan Norcini

Dear CIGAs,

Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini

In The News Today

Posted: Jan 06 2011 By: Jim Sinclair Post Edited: January 6, 2011 at 4:13 pm
Filed under: In The News

Jim Sinclair’s Commentary

This is so wrong while the Banksters now are mostly billionaires, reaching for trillionaire status.

Census: Number of poor may be millions higher
1 in 6 Americans — many of them 65 and older — are struggling in poverty updated 1/5/2011 4:46:10 PM ET 2011-01-05T21:46:10
WASHINGTON — The number of poor people in the U.S. is millions higher than previously known, with 1 in 6 Americans — many of them 65 and older — struggling in poverty due to rising medical care and other costs, according to preliminary census figures released Wednesday.
At the same time, government aid programs such as tax credits and food stamps kept many people out of poverty, helping to ensure the poverty rate did not balloon even higher during the recession in 2009, President Barack Obama’s first year in office.
Under a new revised census formula, overall poverty in 2009 stood at 15.7 percent, or 47.8 million people. That’s compared to the official 2009 rate of 14.3 percent, or 43.6 million, that was reported by the Census Bureau last September.
Across all demographic groups, Americans 65 and older sustained the largest increases in poverty under the revised formula — nearly doubling to 16.1 percent. As a whole, working-age adults 18-64 also saw increases in poverty, as well as whites and Hispanics. Children, blacks and unmarried couples were less likely to be considered poor under the new measure.
Due to new adjustments for geographical variations in costs of living, people residing in the suburbs, the Northeast and West were the regions mostly likely to have poor people — nearly 1 in 5 in the West.
More…

In The News Today

Posted: Jan 06 2011 By: Jim Sinclair Post Edited: January 6, 2011 at 4:13 pm
Filed under: In The News

Fed’s Hoenig Says Gold Standard "Legitimate" System January 5, 2011
KANSAS CITY, Missouri (Reuters) – A gold standard that forces countries to back their currency reserves with bullion is a "legitimate" monetary system, though it would not prevent financial crises, Kansas City Federal Reserve President Thomas Hoenig said on Wednesday.
"The gold standard is a very legitimate monetary system," Hoenig said, adding: "We’re not going to have fewer crises necessarily. You will have a longer of period of price stability or price level stability, but I don’t know that you’ll have lower unemployment, I don’t know that you’ll have fewer bank failures."
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Jim Sinclair’s Commentary

This problem is far from over.

Foreclosures May Be Undone by State Ruling on Mortgage Transfer By Thom Weidlich – Jan 5, 2011 9:01 PM PT Thu Jan 06 05:01:00 GMT 2011
Massachusetts’s highest court is poised to rule on whether foreclosures in the state should be undone because securitization-industry practices violate real- estate law governing how mortgages may be transferred.
The fight between homeowners and banks before the Supreme Judicial Court in Boston turns on whether a mortgage can be transferred without naming the recipient, a common securitization practice. Also at issue is whether the right to a mortgage follows the promissory note it secures when the note is sold, as the industry argues.
A victory for the homeowners may invalidate some foreclosures and force loan originators to buy back mortgages wrongly transferred into loan pools. Such a ruling may also be cited in other state courts handling litigation related to the foreclosure crisis.
“This is the first time the securitization paradigm is squarely before a high court,” said Marie McDonnell, a mortgage-fraud analyst in Orleans, Massachusetts, who wrote a friend-of-the-court brief in favor of borrowers. The state court, under its practices, is likely to rule by next month.
Claims of wrongdoing by banks and loan servicers triggered a 50-state investigation last year into whether hundreds of thousands of foreclosures were properly documented as the housing market collapsed. The probe came after JPMorgan Chase & Co. and Ally Financial Inc. said they would stop repossessions in 23 states where courts supervise home seizures and Bank of America Corp. froze U.S. foreclosures. Massachusetts is one of 27 states where court supervision of foreclosures generally isn’t required.
More…

Jim Sinclair’s Commentary

This is so wrong while the Banksters now are mostly billionaires, reaching for trillionaire status.

Census: Number of poor may be millions higher
1 in 6 Americans — many of them 65 and older — are struggling in poverty updated 1/5/2011 4:46:10 PM ET 2011-01-05T21:46:10
WASHINGTON — The number of poor people in the U.S. is millions higher than previously known, with 1 in 6 Americans — many of them 65 and older — struggling in poverty due to rising medical care and other costs, according to preliminary census figures released Wednesday.
At the same time, government aid programs such as tax credits and food stamps kept many people out of poverty, helping to ensure the poverty rate did not balloon even higher during the recession in 2009, President Barack Obama’s first year in office.
Under a new revised census formula, overall poverty in 2009 stood at 15.7 percent, or 47.8 million people. That’s compared to the official 2009 rate of 14.3 percent, or 43.6 million, that was reported by the Census Bureau last September.
Across all demographic groups, Americans 65 and older sustained the largest increases in poverty under the revised formula — nearly doubling to 16.1 percent. As a whole, working-age adults 18-64 also saw increases in poverty, as well as whites and Hispanics. Children, blacks and unmarried couples were less likely to be considered poor under the new measure.
Due to new adjustments for geographical variations in costs of living, people residing in the suburbs, the Northeast and West were the regions mostly likely to have poor people — nearly 1 in 5 in the West.
More…

Jim Sinclair’s Commentary

The Banksters Rule.

Goldman’s $1M fine closes door on Conn. ARS obligation Rob Varnon, Staff Writer
Published: 09:50 p.m., Wednesday, January 5, 2011
Goldman Sachs & Co. will pay Connecticut more than $1 million to settle charges of unethical practices related to the Wall Street leviathan’s auction-rate securities business prior to February 2008.
On Wednesday, the Connecticut Banking Department posted a consent order signed on Dec. 17 between the state and Goldman’s managing director, Michael C. Keats. The company admitted no wrongdoing and declined to comment on the order.
This is Connecticut’s share of a $22.5 million multi-state settlement of allegations that the New York firm hid knowledge of a troubled market for auction-rate securities, which got their name from the weekly, bank-run sales where the interest rate they pay investors is determined. Goldman continued to market the securities and allegedly filled the void with its own cover bids.
The market, which once stood at $330 billion, according to Bloomberg News, collapsed in 2008 as banks stopped using their own cash to prop up the auctions. That left investors with bonds they couldn’t sell and forced borrowers such as municipalities to pay a premium.
Shares of Goldman Sachs rose 92 cents to $174 on Wednesday.
UBS, Citibank and Deutsche have all reached similar settlements with the U.S. Securities and Exchange Commission to payback billions of dollars to investors who lost money as a result of the financial firms’ actions.
More…

Harvey Organ's