Investors have expressed confusion recently because parts of the economy are clearly collapsed, but restaurants remain packed in many areas. John Williams clears up the confusion by demonstrating that real GDP remains collapsed, and that the hype from Wall Street about a recovery is a lie. Williams, who founded ShadowStats, also illustrates, in reality, how the consumer remains “crushed.” Here is what Williams had to say about the situation: “Broad U.S. business activity remains far from being recovered, despite the ongoing GDP-reporting nonsense that shows inflation-adjusted economic activity above the peak levels that preceded the 2007 recession.”
John Williams continues: Read More @ KingWorldNews.com
The NDAA is being challenged in a lawsuit by multiple journalists that could be accused of supporting terrorism for reporting facts that challenge the official US government narrative.
A coalition of prominent journalist known for being critical of the United States in the War on Terror have joined forces to file a lawsuit against Barack Obama and Leon Panetta to challenge the National Defense Authorization act.
The NDAA, also known as the Homeland Battlefield Bill, has legalized a wide variety of totalitarian measures against US citizens by declaring the entire world, including the United States, a battleground in the war against terrorism and is a clear and present danger to the US Constitution.
Read More @ TheIntelHub.com
A core piece of last week's European newsflow was that following much pushback, Angela Merkel, who understands the underlying math all too well, finally dropped her opposition to expanding the European "firewall" in the form of a combined EFSF and ESM rescue mechanisms, to bring the total "firepower" to €800 billion (ignoring for a moment that when the true dry powder of the combined vehicle is just about €500 billion net as explained here, hardly enough to rescue Spain, let alone Italy). Yet as has been explained here repeatedly, and as Merkel has figured out, this is easily the most symbolic expansion of a rescue facility ever. Because while the ECB's agreement to allow Eurobanks to abuse its €1 trillion discount window for three years (which is what the LTRO is), following the replacement of JC Trichet with a Goldman apparatchik, at least infused the system with $1.3 trillion in new fungible liquidity (and resulted in a stock market performance boost for the ages, one which is now unwinding), the 'firewall" does not represent new money, nor is a "firewall" to begin with - it is merely one massive contingent liability which will remain unfunded in perpetuity. Slowly the German media is waking up, and in an article in Der Spiegel, the authors observe that "Even a 1-Trillion Euro Firewall wouldn't be enough." And they are correct, because the size of the firewall is completely irrelevant, as explained later. All the "firewall" does is shift even more backstop responsibility on the only true AAA-country left in the Eurozone, Germany. However, the main cause of problems in Europe - a massive debt overhang which can at best be rolled over but never paid down due to the increasingly lower cash flow generation of Europe's (and America's) assets, still remains, and will do so until the debt is finally written down. However, it can't because one bank's liability is another bank's asset. And so we go back to square one, which is that the system is caught in the biggest Catch 22, as we explained back in 2009. We are glad to see that slowly but surely this damning conclusion is finally being understood by most.
I’ve asked this question to a number of people and most them respond as if I were crazy for asking. They tell me that this is America , land of the free and that there will always be elections. I tell them that we are no longer the land of the free and that if Obama gets re-elected in 2012, that this just may be America ‘s last election. In the past three years, the Obama administration has been very carefully crafting the nation for a political take over by his Marxist regime and this isn’t just my opinion.
Popular radio talk show host Michael Savage is the son of Russian immigrants and is very familiar with Soviet and European history. Savage warned his listeners this week saying, “I have to tell you that if this man, God forbid, is the next president of the United States, we’re going to be living in something along the lines of – people say Europe. I don’t believe it’s going to be like Europe – I think it will be closer to Chavez’s South American dictatorship.
“This is the most corrupt, incompetent, dangerous tyrannical administration in American history. It’s not politics as usual. It’s not just Democrats versus Republicans.
Read More @ BeforeItsNews.com.com
Neo-classical economists underestimate the importance of the link between savings and investment. The two should be regarded as linked together: you need savings to be available for investment in new production for the future.
This causes no concern to mainstream economists. Instead they advocate that savings should support government spending, rather than paying down consumer debt. They regard the second option as recessionary folly. Meanwhile they believe investment can be stimulated through low interest rates with a helping hand from government. The effect of our current predicament in most advanced economies has been to separate savings from industrial investment. This is unwise.
Read More @ GoldMoney.com
Ten days ago, Goldman's Peter Oppenheimer published the "Long Good Buy, The Case For Equities", a big research piece, full of pretty charts and witty bullets, which actively urged the rotation out of bonds and into stocks, yet not only marked the peak of the market so far, but drew ridicule even from the likes of CNBC. More importantly, it has generated a plethora of questions from the muppets (aka Goldman clients) themselves, who are wondering how Goldman can be both uber bullish, and yet still have a 1250 S&P 2012 YE price target, as per the other strategist, David Kostin ("We expect the S&P 500 will trade at 1325 by mid-year (-5.6%) and 1250 in 12 months (-10.9%)."), or said otherwise, just how is it that Goldman is having its cake and eating it too? Below is David Kostin's attempt to justify how the firm can pull a Dennis Gartman (and virtually any other newsletter and book seller - after all what better way to say one was right than to have all bases covered) be both bearish and bullish at the same time.
There are two major trends taking place that are shaping up as a recipe for disaster. On the one hand, we have massively indebted governments around the world desperate for tax revenues and, on the other, steadily growing multi-trillion underground economies whose main goal is to avoid paying them.
According to a recent study, the amount of uncollected tax revenues in the U.S. is estimated around a whopping 500 billion dollars per year.
At 8 percent of GDP, the underground or shadow economy in the U.S. is much smaller percentage-wise than in other nations like Greece (25 percent), Italy (27 percent), or Thailand (70 percent), yet, given our overall size, America’s untaxed economy is larger than “the official output of all but the upper crust of nations across the globe…bigger than the GDP of Turkey or Austria.”
Read More @ FinancialSense.com
Spain's honeymoon with its new government is over.
The report specifically cites the rampant illegality which now dominates the banking and bullion banking systems, noting that major components of current banking practices are in direct conflict with South Carolina laws. And in only six pages, one of the highest offices in state government validates all of the most significant precious metals manipulation claims made over the years by GATA, Bill Murphy, Chris Powell, Adrian Douglas, Ted Butler, Eric Sprott and the rest of us in the precious metals news and information community.
The author of the report clearly understands the illegal and deliberate nature of the banking cartel’s price suppression schemes and ultimately concludes that investing in gold and silver is therefore too risky for a State government. In the report the Office of the Treasury specifically cites the illegal nature of the fractional reserve bullion banking and COMEX schemes. The author specifically notes that COMEX and bullion banking practices are in direct conflict with the South Carolina Code of Laws, 1976 SECTIONS 11-9-660. Read More…
Do you have the fortitude to be right and sit tight?
The Doc sat down with silver analyst and guru David Morgan from Silver-Investor.com regarding silver’s supply/demand fundamentals, the implications of an Iran invasion on silver, the leap-day take-down, and whether position limits in silver will ever be enforced by the CFTC.
Read More @ SilverDoctors.com
Earlier this week, a fully loaded Brinks truck carrying between $3 million and $5 million in uncirculated loonies and toonies crashed on a snow covered highway in Ontario, Canada. The truck crossed the centre line and slammed into a rock, launching the coins in every direction. The accident is an unfortunate event, but can serve as an analogy about today’s fragile fiat currencies.
The current financial system serves as a global high-speed economic highway that is filled with many obstacles, including debt, bubbles and politics. Being the world’s reserve currency, the U.S. dollar is the truck that is one good bump away from losing control and crashing, causing a chaotic financial wreck. The U.S. official national debt now stands at over $15.6 trillion, representing about $140,000 per taxpayer. The record debt amount continues to increase as Washington gridlock is stronger than ever. The debt ceiling, which was raised last August to $16.394 trillion and initially expected to last well into 2013, is now estimated by Zero Hedge to be reached in September of this year. When Treasury Secretary, Timothy Geithner, was recently asked how much he would raise the debt ceiling if given only one more request, he responded, “No idea.” After $20 trillion and $50 trillion were floated as ideas, he finally conceded, “It would be a lot. It would make you uncomfortable.” The dire situation in Washington and the dollar is causing states to prepare for a bumpy road ahead.
Read More @ WallStCheatSheet.com
Stefan Molyneux, host of Freedomain Radio, is interviewed by Jan Irvin of Gnostic Media about the challenges of philosophical and peaceful parenting, the horrors of government indoctrination through education, the ‘selfishness’ of libertarianism, and the historical exploitation of money?
Here is the Official Sneak Preview for my new film, “HOMELAND IN-SECURITY: Rise Of The Global Police State”.
The film is set for release JULY 4, 2012 (Human Independence Day).
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