WARNING: Financial Terrorist Hank Paulson Comes Out of Hiding With More Threats, Enters Deficit Talks As They Suddenly Collaspe

silvergoldsilver at silvergoldsilver - 14 minutes ago

The fact that Hank Paulson just came out of hiding and got involved in the deficit ceiling debate is a very ominous sign. Hank Paulson is a financial terror mastermind, not using hyperbole, just speaking technically. His hand in this financial crisis has been pivotal since its inception (see below). The fact that Paulson publicly says he wants the debt ceiling raised, which makes sense because if it isn’t raised his treasured Ponzi scheme may collapse, doesn’t mean that he may have come up with an even more diabolical plan if the ceiling isn’t raised. Read origial Article by David D...

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Breaking News...

Debt Crisis Update: President Obama Will Meet with Democratic Leaders Reid and Pelosi at the White House Tonight at 6pm/et

 

Latest In The Debt Ceiling Crisis: Reid To Offer $2.5 Trillion In Deficit Reductions And No Tax Increases

Just out from CNN's Lisa Desjardins

• BREAKING - NEW Dem. debt plan: Reid to offer at "least $2.5 Trillion" in deficit redux w/ no revenue increases, Dem. source tells CNN.
• NEW REID PLAN: "At least $2.5 T in deficit redux" w/ no revenue increases. BUT, unclear what baseline he's using and what he'd cut.

And we are confident that the spending "cuts" will take place over 10 years, back-end loaded, which means no spending cuts any time soon. Said otherwise, no spending cuts, no tax hikes. And yes, $2.5 trillion debt ceiling increase. Just as we predicted two weeks ago.

SocGen On The Three "11th Hour" Debt Ceiling Scenarios, And Their Respective Market Reactions

As we enter the overnight futures market open, there is still no resolution on the ongoing debt ceiling open question. Which is why we present SocGen's handy summary of the three scenarios that are currently in the running for a consensual resolution, together with the possible market reactions to each. The three plans are the McConnell-Reid plan, which as per latest news is in the frontrunning currently, not least (and probably only) due to the immediate beneficial impact it would have on stocks. The 2nd plan is a large deficit reduction plan, whoe primary impact would be a significant drag on GDP. Stocks, and bonds, are likely to both rally on the news of this plan, at least in the short-term until the market realizes that some economic growth is actually necessary for the hopium illusion to continue. Lastly, the worst case outcome is no increase in the debt limit, which, logically, would mean that every illusion collapses and the emperor is finally exposed to be naked.

Guest Post: Greece - Two Bail-outs and a Funeral

Here we go again. Another bail-out. [Sigh.]
I’ll try to make this as entertaining and easily readable as possible – but first the details of the bail-out agreed on July 21st:

• Fresh EUR 109bn EFSF/IMF loans until mid-2014
• Private sector (read: banks) participation of EUR 37bn
• EUR 12.6bn from bond repurchases at below par (100%)
• All EFSF loans extended to 15-30 years with interest rate cut to 3.5% (same relief granted for Portugal and Ireland)
• EFSF re-tooled: flexible credit lines, purchase of bonds in secondary market, recapitalizing banks
• “Marshall Plan” for Greece (increased investments by EU)

Soon you will have to deal with the same or worse inflation...Got Physical Gold and Silver?

Vietnam's inflation rises to 22%, highest among Asian economies

 

 

In The News Today

July 24, 2011, at 1:47 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

Three this weekend.

July 22, 2011
These links contain useful information for the customers and vendors of these closed banks.
Bank of Choice, Greeley, CO
LandMark Bank of Florida, Sarasota, FL
Southshore Community Bank, Apollo Beach, FL
http://www.fdic.gov/




Jim Sinclair’s Commentary

It is unthinkable that there will be a failure to politically jerry-rig some compromise that allows the debt ceiling to rise, but just in case, it is right to be prepared.

Wall Street and the debt ceiling
Unthinkable?
Contingency planning, sort of Jul 21st 2011 | NEW YORK | from the print edition
BEN BERNANKE reckons it would be “a huge financial calamity”. Bond markets remain sanguine about a possible failure to raise America’s debt ceiling by August 2nd, and the subsequent potential for a technical default. But it pays to plan ahead, just in case the politicians lose the last of their marbles.
SIFMA, a trade group for large banks and fund managers, recently gathered members together to discuss issues like how to rewire their systems to pass IOUs rather than actual interest payments to investors, should a default occur. “It’s one of those Murphy’s Law things. If we do it, it won’t prove necessary. If we don’t, we’ll be scrambling like crazy with a day to go,” says one participant.
But the moneymen hardly have all the bases covered. “I really thought I understood this market, until I tried to map all of the possible consequences of a breakdown,” sighs a bond-market veteran. That is hardly surprising, given that Treasury prices are used as the reference rate for most other credit markets. Moreover, some $4 trillion of Treasury debt—nearly half of the total—is used as collateral in futures, over-the-counter derivatives and the repurchase (repo) markets, a crucial source of short-term loans for financial firms, according to analysts at JPMorgan Chase.
Some fear that a default could cause a 2008-style crunch in repo markets, with the raising of “haircuts” on Treasuries leading to margin calls. The reality would be more complicated. For one thing, it’s not clear that there is a viable alternative as the “risk-free” benchmark. One banker jokes that AAA-rated Johnson & Johnson is “not quite as liquid”. In a flight to safety triggered by a default, much of the money bailing out of risky assets could end up in Treasury debt. Increased demand for collateral to secure loans could even push up its price.
Then there is the impact of a ratings downgrade. Money-market funds, which hold $684 billion of government and agency securities, are allowed to hold government paper that has been downgraded a notch. Other investors, such as some insurers, can only hold top-rated securities but their investment boards are likely to approve requests to rewrite their covenants, especially if a lower rating looks temporary. “It would be a full-employment act for lawyers,” says Lou Crandall of Wrightson ICAP, a research firm. There’s a surprise.
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