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

Harvey Organ, Wednesday, June 8, 2011

Raid on gold and silver/USA dollars/Yen now below 80.00

Feri Downgrades the Creditworthiness of the United States from AAA to AA

Homburg, 8 June 2011 - The Bad Homburg €uro Feri Rating & Research AG downgraded the first credit rating agency's credit rating for the United States from AAA to AA. Feri analysts justify the downgrade by the continuing deterioration of the creditworthiness of the country due to high public debt, inadequate fiscal measures, and weaker growth prospects.

"The U.S. government has fought the effects of the financial market crisis primarily by an increase in government debt. We do not see thank that there is sufficient attention being paid to other measures, "said Dr. Tobias Schmidt, CEO of Feri Rating & Research AG €. "Our rating system shows a deterioration in economic health, so the downgrading of the credit ratings of U.S. is warranted."

For the third consecutive year the deficit of the United States is in double digit percentages relative to gross domestic product (GDP). "Deficits of such magnitude are not a sustainable fiscal policy. We would reconsider the rating when the U.S. government creates a long-term sustainable budget," said Schmidt.

Feri Rating is listed on the Federal Financial Supervisory Authority (BaFin) as an EU credit rating agency approved and created with more than 20 years experience in sovereign ratings. Every month, the Feri analysts evaluate sovereign credit ratings from the perspective of a foreign investor based on the ability and willingness of countries to repay their debts. The credit ratings have eleven possible gradations between "AAA" (best credit) and "Default". By Harald Weygand

Here It Comes: Obama Considering Another Fiscal Stimulus

Submitted by Tyler Durden on 06/08/2011 18:05 -0400

It just never changes:

OBAMA AIDES SAID TO DISCUSS EMPLOYER PAYROLL TAX BREAK
PAYROLL TAX BREAK FOR EMPLOYERS AMONG IDEAS TO BOOST HIRING
ADMINISTRATION CONSIDERING MEASURES AS RECOVERY SLOWS

Bolded bullets aside, good luck passing another fiscal stimulus Dear President when you can't even issue debt without stealing money from government retirees.

Will The Banksters And The Corpocracy Eventually Own It All?

Posted by: ilene

Post date: 06/08/2011 - 15:20

29 Statistics About Extreme Income Inequality In America That Will Blow Your Mind

Stocks Close Down For 6th Consecutive Day: Longest Red Streak Since February 2009, Just Before QE1

Submitted by Tyler Durden on 06/08/2011 16:17 -0400

The last time we had 6 consecutive down days was February 13-23, 2009. Which is before March 2009. Which is when the S&P hit 666. Which is when the Fed started Q1. As for the last time we had 5 down days in a row was in August of 2010, just when the Hindenburg Omen was spotted and threatened to undo the entire Centrally Planned house of cards... Which is when the Fed started QE2. Pattern emerging?

Bill Gross: "No QE 3"

The latest soundbite from Bill Gross comes from the Morningstar fund conference, where he again repeated his conviction that there will be no QE3. Reuters reports: "Pimco co-chief investment officer Bill Gross said the Federal Reserve would not be able to start a third round of quantitative easing after the second round expires at the end of this month. The members of the central bank's open market committee are "balanced but divided," Gross, manager of the world's largest bond fund, said on Wednesday in a speech at the Morningstar fund conference. "It will be difficult to initiate a QE3." Instead, the Fed will try to keep interest rates low with its official statements, Gross said. Gross's fund, the $243 billion Pimco Total Return Fund, has gained 3.24 percent so far this year, trailing 58 percent of similar funds, according to Morningstar data."

Time For Chinese Fraudcaps To Exit Stage Left

Submitted by Tyler Durden on 06/08/2011 15:50 -0400

One of the most unbelievable developments in the past few days has been the rank, unprecedented, totally amateur and outright pathetic backlash against writers of "short China" theses by the management teams of these same companies that have garnered the all too deserved definition of "Fraudcaps." We have shown before that the hit rate of pieces accusing Chinese companies is well north of 80% as exhibited by the fact that virtually all companies currently halted indefinitely on the Nasdaq are of Chinese origin. But of course, the fact that their stocks plunge only after an investor who has actually done their homework exposes Chinese frauds for what they are, does not prevent these companies to stoop to the lowest rung on the ladder and actually sue these contrarians who in the long run merely prevent further capital erosion from future lazy momos who may have invested in these crap companies. It is time for these smokescreening, grautious, shareholder fund-depleting lawsuits to stop, and for shareholders to instead sue their management teams. After all, if these allegations are so wrong, than it is the fiduciary duty of the management team to buy back as much stock as humanly possible, using both corporate and personal funds: if there is no fraud, this represents a massive discount to fair value and the highest IRR investment these clueless fraudulent management teams can pursue. Commit fraud once, with the help of the NYSE and Nasdaq, that's fine - the idiot momos who buy your shares will lose everything, but continue this charade and CEOs deserve to go to jail immediately, hopefully while ignoring the completely toothless SEC which has failed and continues to fail miserably when it comes to protecting shareholder interests, especially in this most recent Chinese fraud contagion. Also, we leave the question of when any incompetent sellside banker will be sued for peddling a BUY rating on Chinese fraud completely open...

Remembering The Fed's Definition Of "Sound Money"

Submitted by Tyler Durden on 06/08/2011 14:54 -0400

Nothing quite like hearing it from the printer's mouth every now and then...

Beige Book Released: "Japan Is The New Snow" In Explaining A Slowing Economy

Submitted by Tyler Durden on 06/08/2011 14:08 -0400

According to the just released Beige Book, there was slower growth seen in New York, Philadelphia, Atlanta, Chicago districts. Only Dallas reported acceleration. And yet the denials continue: "wage growth generally remained modest", and there was "widespread improvement reported in credit quality." We wonder where they get these imaginary data feeds from. More from the report: "Manufacturing activity continued to expand in most parts of the country, though a number of Districts noted some slowing in the pace of growth. Activity in the non-financial service sectors expanded at a steady pace, led by industries related to information technology and business and professional services." Shockingly, the Fed admits there is food price inflation: "Elevated food and energy prices, as well as unfavorable weather in some parts of the country, were said to be weighing on consumers’ propensity to spend." Lastly, Japan is the new snow: "Widespread supply disruptions—primarily related to the disaster in Japan—were reported to have substantially reduced the flow of new automobiles into dealers’ inventories, which in turn held down sales in some Districts. Widespread shortages of used cars were also reported to be driving up prices....Many Districts indicated that supply disruptions, primarily from Japan, have contributed to lean inventories, which have impeded auto sales somewhat....Inventory levels are mixed, with one retailer explaining inventory has been temporarily increased due to global supply concerns, such as output disruptions in Japan." And so forth. Key word count of the word: Japan - 25 times; Inflation - 1 time; Deflation - zero.

Structural Unemployment: The Average Unemployed American Looks For A Job For 20 Weeks Before Giving Up

Submitted by Tyler Durden on 06/08/2011 13:52 -0400

According to a just released report by the BLS, the average unemployed American looked for a job for about 5 months, or 20 weeks, before giving up in 2010. This is a two and a half times extension in the period of disenchantment over the past 3 years, when it took just 8.5 week for the unemployed to give up as recently as 2007. Gradually the feeling of entitlement in America's labor pool seems to be deflating. Alas, it also means that the labor force participation, which continues to be at a 25 year low, will likely not return to recent highs as more and more people are now unemployed for longer, and thus lose marketable employment skills, meaning that the current jump in unemployment is, as many have feared, entirely structural and there is nothing cyclical about it. Additionally, the lucky unemployed succeeded in finding a job in about 10 weeks in 2010, a doubling from 2007's median 5 week period of successful job searching. The issue however is that in May 6.2 million had been out of work for more than six months and more than 4 million haven’t work in more than a year. These are people who are now effectively pushed out of the labor force. Bottom line: perhaps the Fed should just give up on its maximum employment mandate which it now appears to be a complete failure, and just focus on generating hyperinflation which alas will soon be the only way out of the complete disaster America will find itself in in under a year when total US debt is about 120% of GDP.