How Capitalism Went On A Brief Sabbatical Which Became A Permanent Vacation: Rosenberg Explains "The Artificial Recovery" 

Indeed, this 2009-2011 recovery and cyclical bull market has been as artificial as the 2003-07 expansion. That last one was fuelled by financial engineering in the financial sector. This one is being underpinned by unprecedented government intrusion in the credit markets. As of this quarter, your government has replaced the private sector as the largest source of outstanding mortgage market and consumer-related credit (see front page of the Investor's Business Daily). So not only is the U.S.A. turning Japanese in many respects, it is also now resembling China where the government also redirects the flow of private sector credit. When we said capitalism went on a sabbatical three years ago, we didn't expect this to be a permanent vacation.

Glenn Beck On The "Only Four Outcomes"

You discussed it here yesterday. Today, Glenn Beck takes it to a whole new level...

In The News Today

June 27, 2011, at 7:11 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Dear CIGAs,

The following is from the China Daily.

This tells the entire story that words would simply mess up.

More…

Unfortunately...I concur...and We The Sheeplez Sleep...

"In order for this economy to become balanced again would require consumer debt to be reduced by $3 to $4 trillion and the savings rate to double from 5% to 10%. This will never happen voluntarily. Americans are still delusional. They are actually increasing their debt as credit card debt sits at $790 billion, student loan debt at $1 trillion, auto loans at $600 billion, and mortgage debt at $13.8 trillion. The debt will not decline until an economic Depression wipes out banks and consumers alike. America will go down with a bang, not a whimper." - Jim Quinn, writing in The Burning Platform blog.





Why Austerity Doesn't Matter: Greece is Still Going to Default.



Forecasts for Growth Drop, Some Sharply






The next article is from the Scum at the new york times...you can bet that this article was written specifically to help the Banker Bastards shake out the weak hands, and drive the price lower so they can buy...you watch it and let me know what happened...
Behind Veneer, Doubt on Future of Natural Gas



Fed Slashes Growth Forecast, Sees Unemployment Still High






Investors Warned are Afraid of "Armageddon" in Foreign Exchange Markets



US Postal Services Warned is on The Brink of Financial Collapse; Suspends Retirement Payments to Save Cash



Poll:  More Americans Say They are Worse Off Than Two Years Ago



10 Brands That Could Soon Disappear




IBD Editorial: Was Fast and Furious a Gun-Control Plot?

A Contrarian View On The Strategic Petroleum Reserve Release Decision 

Submitted by Tyler Durden on 06/27/2011 21:01 -0400

Last week, many, Zero Hedge among them, blasted the decision by the IEA to released 60 million barrels of crude in what was perceived as a last ditch effort to lower the price of gas in exchange for brownie points, while ignoring the fact that the crude would have to repurchased at some point in the future almost certainly at a higher price, and that it puts OPEC in a position of potential retaliation that could have far more adverse price repercussions than the IEA's opening salvo. Then again perhaps the move was not as misguided as the skeptics believe. Below we present the view from Emad Mostaque of Religare Capital Markets who provides a different spin on things: "Market consensus following the IEA release of strategic reserves last week has been quite negative on fears of OPEC/Saudi retaliation, erosion of the all-important buffer and accusations of political pandering. We are more positive and see this as positive for market transparency and function. GCC and IEA objectives are aligned: Neither the GCC or IEA want oil prices over $100 or market distortions. The remainder of OPEC has no room to retaliate and we are likely to see more cooperation to reduce volatility. IEA targeting shortages, GCC price: This is essentially an oil swap agreement addressing the lack of light, sweet Libyan crude in the European market and the ridiculous Brent-WTI spread. The GCC will continue to pump heavier crude at market value and will defend prices in the $85-100 range. As a result, we do not believe reserves will fall to dangerous levels. Fundamentals and Libya: While we have been negative on the short-term oil price since the start of May and have been looking at the lower end of our $90-100 range for the summer, we are still constructive long-term and believe consensus estimates are reasonable. We also see a potential resolution in Libya as increasingly likely, with no increase in MENA violence."

Bob Eisenbeis: QE 2 and Policy

Posted by: rcwhalen

Post date: 06/27/2011 - 21:32

The Fed is not backing off of its desire to stimulate the economy, all it is doing is backing off of its policy of steadily adding to that stimulus. The air is not, on net, leaking from the tire, it is still in the balloon. That stimulus is still working and the key question is how effective it has been and will be. 

US Dollar Seen Losing Its Global Reserve Status

The US dollar will lose its status as the global reserve currency over the next 25 years, according to a survey of central bank reserve managers who collectively control more than $8,000 billion, the FT reports.