The Coming Economic Collapse, Currency Induced Cost Push Inflation/Hyperinflation, Weimar Germany, Euro Collapse,
Zimbabwe Hyperinflation, Survival in Economic Collapse, World Economic Collapse, Dollar Collapse,
What Would Happen If the Economy Collapsed,The Coming Economic Depression.
Gold and Silver Will Protect Your Wealth.
It's not Jefferson County, yet, but it could certainly be seen as the precursor to the first domino.
"The state-appointed receiver overseeing the cash-strapped Rhode
Island town of Central Falls has filed for bankruptcy on the city's
behalf in an effort to help it get back on its feet. Receiver Robert G.
Flanders and Rhode Island Gov. Lincoln Chafee announced the step -
which Flanders has described as a last resort - at a news conference at
City Hall. Flanders filed the legal paperwork seeking bankruptcy
protection Monday. "From the ashes of bankruptcy Central Falls will
rise again," Flanders said." The biggest losers: unions. "With the city
now seeking bankruptcy protection, Flanders said he plans to reduce
pension benefits beginning in late August. He has asked the federal
court to immediately reject collective bargaining agreements. He said
the next set of pension payments will reflect at least the cuts he
outlined to city retirees. In addition, he said city workers will face
layoffs. Flanders called the step unavoidable, as taxes have already
been raised and city services have been cut "to the bone." Expect
Barack Obama to thaw Steve Rattner from carbonite explain to creditors,
using a variety of four letter words, that they will be last in line
of payment after every single union claim has been satisfied, with the
resultant husk of a town reverse merged with GM.
First it was Zero Hedge two hours ago,
now it is the turn of JP Morgan's Michael Ferolli. "The employment
index plunged a huge 6.4 points to 53.5, a print which adds a little
downside risk to our already-below-consensus outlook for only 45,000
job growth in this Friday's July employment report." As a reminder,
consensus is 90,000 or thereabouts. A negative print this Friday will
bring QE3 within weeks. Which, of course, is the plan to go alongside
the $2.5 trillion in debt coming to the market.
Headline flashing now openly warning that the BOJ is preparing to intervene:
JAPAN PREPARES FOR CURRENCY INTERVENTION, NIKKEI SAYS
COORDINATED INTERVENTION MAY FOLLOW JAPAN ACTION: NIKKEI
We call complete bullshit on this. Never do central banks preanounce when they intervene. Never. This is merely more posturing by
the toothless and completely powerless BOJ which now has resorted to
spreading rumors in order to get the USDJPY higher. Ref: Philipp
Hildebrand who has been crouched in a fetal position for the past 6
months in a continuous PTSD daze.
Submitted by Tyler Durden on 08/01/2011 - 12:57
Everyone appears to be confounded by the Dax futures flash crash as
noted previously. Here is Goldman's Mark Bellak responding to client
inquiries, confirming that even GS has no clue what just happened.
URGENT: Call Your Congressman RIGHT NOW to Oppose Debt Ceiling Deal
With the House and Senate trying to force a vote on the new debt-ceiling
deal right now before anyone has a chance to fully review it, we must
take action RIGHT NOW to oppose this bill. This bill cuts $900 billion
around the edges and has no Balanced Budget Amendment requirement. In
addition, it creates a "Super Committee" that may very well push through
tax increases.
We cannot allow weak-kneed Republicans to steal defeat from the jaws of
victory. Call your Congressman and Senators right now to oppose this
bill, and demand that they Cut, Cap, and Balance instead. Click here to get your representatives' telephone numbers.
"No plan under serious consideration cuts spending in the way you and I think about it. Instead,
the "cuts" being discussed are illusory, and are not cuts from current
amounts being spent, but cuts in projected spending increases. This
is akin to a family "saving" $100,000 in expenses by deciding not to
buy a Lamborghini, and instead getting a fully loaded Mercedes, when
really their budget dictates that they need to stick with their
perfectly serviceable Honda. But this is the type of math Washington
uses to mask the incriminating truth about their unrepentant plundering
of the American people. The truth is that frightening rhetoric about
default and full faith and credit of the United States is being
carelessly thrown around to ram through a bigger budget than ever, in
spite of stagnant revenues. If your family's income did not change year
over year, would it be wise financial management to accelerate
spending so you would feel richer? That is what our government is
doing, with one side merely suggesting a different list of purchases
than the other."
Remember all those idiots who claimed that Fukushima is contained, or
better yet, the drama is exaggerated? Perhaps it is time to exile them
all, starting with that moron from MIT, to Fukushima where the
radiation measured at the base of the main ventilation stack just hit
an all time high 10 sieverts/hour. The truth likely is much uglier: this is simply the highest reading the devices are able to record. In other words, there does not exist a device that can capture the true extent of the catastrophe at Fukushima!
‘Drop in the Ocean’ Cuts Mean 2-Notch Downgrade: Strategist Published: Monday, 1 Aug 2011 | 4:28 AM ET By: Patrick Allen
Following the last-minute debt deal agreed by President Barack
Obama and congressional leaders, one strategist is predicting the rating
agencies should downgrade US debt by two notches. The “US debt deal" package cannot
disguise that the proposed cuts are a drop in the ocean relative to the
current US budget deficit, said Marc Ostwald, a strategist at Monument
Securities in London in a research note. The deal also does nothing to hide the weakness in the US economy
as highlighted by a second quarter growth figure of just 1.3 percent,
according to Ostwald, who believes quantitative easing has been a
failure. “The failure of QE1 (a first round of quantitative easing) and QE2
to stimulate the US economy, in effect because trying to use monetary
policy to cure structural weaknesses in the financial and housing
sectors and politics, and colossal imbalances in the economy, was always
doomed to failure” said Ostwald. “A US ratings cut should be delivered this week (and should
properly be a 2-notch cut to AA with negative outlook), but whether it
will or not is another question,” he said. More…
Everybody is thinking the debt ceiling deal is a done deal. To that I
say, not so fast. First of all, this is a deal everybody hates
including the President. That doesn’t mean he won’t sign the
legislation when it comes across his desk—he will. The leaders in
Congress have agreed to a plan, but the trick is going to be getting it
through the House and Senate. The far left hates it for the spending
cuts and no upfront tax increases. The far right hates it because the
cuts are not deep enough. There is less resistance to the deal in the
Senate, but the House of Representatives is another story altogether.
There are probably at least 160 “NO” votes between Democrats and
Republicans. (The Senate is not a done deal either, but it is probably
more likely to pass it than the House.) The Black Caucus hates the debt
deal so much it has asked the President to bypass Congress and raise
the ceiling on his own by using the 14th Amendment. That is not going
to happen before the August 2nd deadline. If the bill fails to get the
votes, who knows what will happen.
There are some big sticking points. The debt bill is supposed to be a
two stage plan. Basically, the first stage of the deal promises
immediate cuts of a little less than a $1 trillion now along with
raising the debt limit by around $2.4 trillion in total. (The debt
limit is also raised in 2 stages.) This puts the debt limit high enough
to make it past the 2012 election. In the second stage of the deal,
there is $1.4 trillion in more cuts. According to the President, tax
increases will also be on the table. This will have to be done no later
than December 2011. The deficit reduction is supposed to be decided by
a Special Congressional Committee. Otherwise, big automatic cuts will
kick in (they call this the trigger). This includes military spending
and Medicare. So, that alone is a big sticking point and has some in
Congress shying away from this deal already. Tax increases in stage two
of the deal is also another big problem that could derail passage,
especially in the House of Representatives.
Yesterday, David Plouffe, Senior WH Advisor, was on “Meet The Press”
and was insisting the second stage should be “balanced,” which means tax
increases (confiscation). So, if this plan does win approval, Congress
will be right back to chasing its tail in a spending and tax debate in
the not too distant future. $2.4 trillion in cuts may sound like a
lot, but not when you consider the cuts happen over ten years. That’s
just $240 billion a year, and that hardly dents annual deficits of $1.5
trillion ($1,500 billion.) This bill does not really cut spending, but
merely slows it down. Senator Lindsey Graham said today on ABC’s “This
Week,” “. . . we’re no longer running toward oblivion. We’re walking
toward it, and now we need to stop and turn around, go back the other
way. What do I tell people at home who say, what did you do about
getting us out of debt? I slowed down how much debt you add? Instead
of adding $10 trillion, we’re going to add $7 trillion More...
Any trader shocked by this news probably shouldn’t be trading. The
gold and silver will resume its rally after the short-term emotional
releases dissipates into the reality that nothing has changed. How many
times has “nothing has changed” been written here? A few, I think. Silver’s linear up trends have been broken. A monthly average
close above $38.26 will reaccelerate the trend. Headline hype, largely
fear-inducing, will attempt to convince as many people as possible that
this technical setup does not exist. Silver, London P.M. Fixed (Silver) and Z Scores of Secular Trend Headline: Gold Declines as President Says U.S. Lawmakers Reach Deal on Debt Ceiling Gold declined from a record as President Barack Obama said that
U.S. lawmakers reached a deal to increase the nation’s debt limit and
cut the federal deficit, averting a default tomorrow and eroding demand
for haven assets. Gold for immediate delivery lost as much as 1.3 percent to
$1,607.45 an ounce, and traded at $1,613.65 at 2:36 p.m. in Singapore.
Spot gold, which reached an all-time high of $1,632.80 on July 29,
advanced 8.5 percent last month on concern that sovereign-debt crises in
the U.S. and Europe may derail the global economic recovery. “Gold reached a record because U.S. politicians didn’t seem to be
getting anywhere with their negotiations and now that they have an
agreement, gold will be knocked back a little,” said Steven Zhu,
operations manager at Yinjian Futures Co. Republicans and Democrats may vote today on the measure, which
would raise the debt ceiling by at least $2.1 trillion, and slash
government spending by $2.4 trillion or more. Lawmakers should “do the
right thing,” Obama said from the White House late yesterday. Source: finance.yahoo.com More…
It's not Jefferson County, yet, but it could certainly be seen as the precursor to the first domino.
"The state-appointed receiver overseeing the cash-strapped Rhode
Island town of Central Falls has filed for bankruptcy on the city's
behalf in an effort to help it get back on its feet. Receiver Robert G.
Flanders and Rhode Island Gov. Lincoln Chafee announced the step -
which Flanders has described as a last resort - at a news conference at
City Hall. Flanders filed the legal paperwork seeking bankruptcy
protection Monday. "From the ashes of bankruptcy Central Falls will
rise again," Flanders said." The biggest losers: unions. "With the city
now seeking bankruptcy protection, Flanders said he plans to reduce
pension benefits beginning in late August. He has asked the federal
court to immediately reject collective bargaining agreements. He said
the next set of pension payments will reflect at least the cuts he
outlined to city retirees. In addition, he said city workers will face
layoffs. Flanders called the step unavoidable, as taxes have already
been raised and city services have been cut "to the bone." Expect
Barack Obama to thaw Steve Rattner from carbonite explain to creditors,
using a variety of four letter words, that they will be last in line
of payment after every single union claim has been satisfied, with the
resultant husk of a town reverse merged with GM.
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