China is about to pull out all the stops on Keynesian spending in an effort to prop up its ailing economy.
The National Development and Reform Commision just approved a massive list of road, rail, port and other infrastructure projects. The announcement comes on the heels of interest cuts earlier this summer and a slew of smaller local government stimulus efforts.
The news immediately boosted the Shanghai Composite by nearly 4% and, when coupled with the ECB’s unlimited bond purchase announcement, helped the Euro rally through the end of the week. American markets didn’t see the same benefit as another disappointing jobs report stifled any bullish sentiment.
The 25 new rail projects alone will cost 800 billion yuan, or about $127 billion. The total value of the projects approved will approach 2% of China’s total economy in 2011, or $157 billion.
Read More @ WealthWire.com
It took the ECB a year of endless behind the scenes Machiavellian scheming to restart the SMP program (which was conceived by Jean-Claude Trichet in May 2010, concurrent with the first Greek bailout). The markets soared with euphoria that this time will be different, and that the program which is a masterclass in central planning paradox, as it is "unlimited" yet "sterilized", while based on "conditions" none of which have been disclosed, and will somehow be pari passu for new bond purchases while it retains seniority for previous purchases of Greek and other PIGS bonds, will work - it won't, and the third time will not be the charm as we showed before. Yet it has been just 48 hours since the "bailout" announcement and already Europe is being Europe: namely, it turns out that nobody wants the bailout.
The last time we looked at monthly Chinese imports of gold from Hong Kong in 2012, the comparable country in question was Portugal (whose citizens, if not central bank, incidentally have run out of gold to sell), because that is whose total gold holdings (at 382.5 tons) Chinese imports had just surpassed. Fast forward a month later, and the update is even more disturbing. In July, Chinese gold imports from HK, after two months of declines, have picked up once more and hit a 3-month high of 75.8 tons. While it is notable that this number is double the 38.1 tons imported a year prior, and that year-to-date imports are now a record 458.6 tons, well over four times greater than the seven month total in 2011 which was 103.9 tons, what is far more important is that in the first seven months of 2012 alone China has imported nearly as much gold as the total holdings of the hedge fund at the heart of the Eurozone, elsewhere known simply as the European Central Bank, and just as importantly considering the import run-rate has hardly slowed down in August, which data we will have in a few weeks, it is now safe to say that in 2012 alone China has imported more gold than the ECB’s entire official 502.1 tons of holdings.
Read More @ Zero Hedge
Rob Kirby of Kirby Analytics.com joins me to explain the depth and breadth of the MASSIVE LIBOR rigging crimes, which started in 2007-2008. Rob says Barclay’s involvement is merely the tip of the iceberg, and that the crimes of LIBOR began at the U.S. Treasury and the Exchange Stabilization Fund (ESF). In Part 2, Rob describes the very dire outlook for America when the dollar is no longer the world’s reserve currency. Rob also expresses his fear for America’s citizens given the ever-expanding police state. Rob says he will never step foot in the United States again, at least not until Liberty is recovered.
(An empty stage. Obama is nowhere in sight. There is no warmup act. The lights go down. A screen drops. The entirety of Romney’s nomination acceptance speech is played. Americans haven’t disliked a Presidential nomination acceptance speech that much since 1996. Lights come up. Obama is standing, open collar, no podium, a knowing smile ear to ear.)
“That’s what I’m talkin’ about!” (He does a 360 on his heels.)
“You want some of that shit?” (Obama yells to the crowd, pointing to the screen, Romney’s huge head and constipated smile frozen in time.)
“Here’s the bottom line muthafucka’s . . . I didn’t do you right. No! I bent you over and banged you like a gong!”(Another 360-degree pivot on his heels . . . Evil grin.)
“And . . . I liked it!
Read More @ DollarVigilante.com
Mario Draghi has achieved the impossible. A recap of yesterday’s momentous developments:
- Mario was able to maintain “Radio-Silence” on the key elements of the plan he unfolded. As a result, he achieved tactical advantage when he unveiled his bold proposals. The global capital markets were both shocked and awed, and responded with unbridled enthusiasm.
- Draghi has presented a well thought out proposal. It addressed all of the issues that the markets and politicians were worrying about:
A) To appease the concerns of the citizens of Germany, Netherlands, Finland etc. the ECB support plan has stiff conditionality. This important step will, no doubt, assuage any concerns those citizens may have that their tax dollars might be at risk.
B) Mario was decisive. He did not fire a bazooka, he did not fire a howitzer. He fired the most powerful weapon known to a Central Banker. He said the “U” word. Unlimited market intervention was promised. With this one word, Draghi has eliminated any uncertainty on the outcome of the Euro and the EU.
Read More @ BruceKrasting.blogspot.com
Friday’s payroll jobs report says that 96,000 new jobs were created in August and that the unemployment rate (U.3) fell from 8.3% to 8.1%. As 96,000 new jobs are not enough to keep up with population growth, the decline in the U.3 unemployment rate was caused by 368,000 discouraged job seekers giving up on finding employment and dropping out of the work force as measured by U.3. Discouraged workers are not included in the U.3 measure of unemployment, which makes the measure useless. The only purpose of U.3 is to keep bad news out of the news. the U.3 unemployment rate only measures those who have not been discouraged by the inability to find a job and are still actively seeking employment.
The government produces another unemployment measure, U.6, which includes people who have been discouraged by the inability to find a job and have been out of the work force for less than a year. This measure of unemployment is 14.7%, a number that would get attention if reported.
When the long-term (more than one year) discouraged workers are included, the US unemployment rate is about 22%. In other words, the real US rate of unemployment is almost three times higher than the reported–headline rate–of 8.1%.
Read More @ PaulCraigRoberts.org
The KWN Weekly Metals Wrap – We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my secret weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold and silver market price action.
LISTEN NOW @ KingWorldNews.com
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When hedge funds advertise … Jesse Eisinger, today, joins Matt Levine in worrying about the effects of allowing hedge funds to advertise. The all-but-certain consequence is that while the handful of excellent hedge funds will remain highly secretive, a bunch of much less savory characters will start hitting the airwaves with gusto. As Jesse says, “Jacoby & Meyers advertises on television; Sullivan & Cromwell does not.” … The big problem here is that we seem to be going from one extreme to the other: while the restrictions on what hedge funds can say in public have historically been too strict, they’re now going to be far too loose. As Levine notes, hedge funds will be able to basically say anything they like about their funds, while omitting anything they want to omit at the same time. – Reuters
Dominant Social Theme: Once hedge funds advertise, investors may lose money.
Free-Market Analysis: Parts of the blogosphere are in full cry over allowing hedge funds to advertise. The idea is that hedge fund managers will overpromise and under-deliver.
Read More @ TheDailyBell.com
The Republicans might not have paid any lip service to their flirtation with the possibility of a gold commission at the RNC, which will be tasked with contrasting the status-quo with the implementation of a semi or full gold standard for the US Dollar, but they have already inserted the meme heavily into the next two months before the election. Knowing their true calculations is difficult, although what is two months of meme injection in an election year? Usually nothing more than a faded memory, a broken spoken social contract between the powers that be and the people.
Romney and Ryan: Gold Standard For America?
Such a move based on current parameters of the global economic landscape would also mean a gold standard for all nations tied to the USD. (read: all nations?) By pre-empting China or Russia on a move to a gold standard – not to put the US at stark contrast with Russia and commercial-communist China – the US could be doing itself a foreign policy favor by eclipsing such a move by a non-world reserve currency power. It would be automatic competition at the level of ideas and would most likely result in a complete rebalancing of the global economic balance. This is something of which the Pentagon must be a part servicing the overall US state-enterprise mission of full-spectrum dominance.
Read More @ Silver Vigilante
Republicans Mull Return to US Gold Standard – WSJ.com
Irrespective, the key takeaway of this “shot across the bow” is that even politicians, bankers, and journalists – i.e., the evil “Washington/Wall Street/MSM troika” that DESTROYS OUR LIVES – understand the new zeitgeist of citizens’ MISTRUST of government policy…
Read more @ MilesFranklin.com
Hope was once again in vogue Thursday night in President Obama’s acceptance speech, after having gone the way of the green shoots. Hope has been swirling around the financial markets as well. The Fed keeps dangling QE3 out in front of them. And ECB President Mario Draghi injected a mega-dose of it with his bond-buying promise. It goosed the markets even more and powered them to multi-year highs.
Then came the jobs report. Only 96,000 non-farm jobs had been created—assuming that number is credible, despite the statistical cosmetic surgeries that are used to beautify it. Worse, June and July were revised lower by 41,000 jobs. The unemployment rate, which dropped from 8.3% to 8.1%, is just noise, and it remains unclear if it measures anything at all. But it will be THE number, the political number, that President Obama will focus on, and if all goes according to plan, it will obligingly drop to 7.9% before the election.
But the jobs report also contained the Employment-Population Ratio. By comparing the number of employed people to all people over sixteen, it outlines in unvarnished brutality the real employment situation. And it goes back to when dirt was young.
Read More @ TestosteronePit.com
The White House on Friday said it will miss the legal deadline for delivering a report to Congress on the spending cuts from sequestration that are scheduled to take effect in 2013.
Spokesman Jay Carney told reporters on Air Force One that the report will be coming next week.
Under the terms of the Sequestration Transparency Act signed in August, President Obama was to tell Congress by Friday how the administration plans to implement the $109 billion in automatic cuts mandated by the Budget Control Act.
The Office of Management and Budget has repeatedly failed to make legal deadlines. It delivered its presidential budget proposals and mid-session updates late both this year and last year.
Read More @ TheHill.com
Red lines, timelines, deadlines, sanctions, sabotage, subversion, cyber attacks, assassinations, saber rattling, falsified IAEA hype, ad nauseam warmongering, Netanyahu/Barak bluster, spurious accusations, manipulated to fail P5+1 talks, and inflammatory headlines up the stakes for war.
When America and Israel plan them, they’re coming. Pretexts are easy to invent. False flags precipitate them. Expect Washington to use them against Syria and Iran. War weary Americans are manipulated for more of what they want ended.
Israelis get the same hype. The region heads for rubicon trouble too risky to cross. Most Israelis and Americans oppose it, yet stay sidelined in silence.
No matter how contained or widespread, war is hell. Nuclear war is unthinkable. On September 7, Progressive Radio News Hour listeners heard Francis Boyle explain the potential deadly consequences. Discussion focused on Iran.
He said a British think tank estimated a minimum 2.8 million Iranian deaths. Radiation poisoning could kill double that number. All Israelis will be threatened. Many will die.
Read More @ SJLendman.Blogspot.com
To those of us in the Western world, a rise in the price of food can be a major inconvenience, but in the developing world it can mean the difference between life and death. Just remember what happened back in 2008. When food prices hit record highs it led to food riots in 28 different countries. Today, there are approximately 2 billion people that are malnourished around the globe. Even rumors of food shortages are enough to spark mass chaos in many areas of the planet. When people fear that they are not going to be able to feed their families they tend to get very desperate. That is why a recent CNN article declared that “2013 will be a year of serious global crisis“.
Because the world spends roughly a trillion dollars each year on armaments, it follows that very many people make their living from war. This is the reason why it is correct to speak of war as a social, political and economic institution, and also one of the main reasons why war persists, although everyone realizes that it is the cause of much of the suffering of humanity.
We know that war is madness, but it persists. We know that it threatens the survival of our species, but it persists, entrenched in the attitudes of historians, newspaper editors and television producers, entrenched in the methods by which politicians finance their campaigns, and entrenched in the financial power of arms manufacturers – entrenched also in the ponderous and costly hardware of war, the fleets of warships, bombers, tanks, nuclear missiles and so on.
Read More @ GlobalResearch.ca
The White House is circulating a draft of an executive order aimed at protecting the country from cyberattacks, The Hill has learned.
The draft proposal, which has been sent to relevant federal agencies for feedback, is a clear sign that the administration is resolved to take action on cybersecurity even as Congress remains gridlocked on legislation that would address the threat.
The draft executive order would establish a voluntary program where companies operating critical infrastructure would elect to meet cybersecurity best practices and standards crafted, in part, by the government, according to two people familiar with the document.
Read More @ TheHill.com
As consumer retail giants like Best Buy, which saw a 90% decline in net income in the second quarter of 2012, struggle for survival amid the worst economic crisis to hit the globe since the Great Depression of the 1930′s, there’s one industry that’s not only maintained its growth, but is showing record profits month after month.
This is no doubt a terrifying trend for those who’d prefer to “hug it out” with mass shooters or violent criminals in modern day domestic war zones like Chicago, Illinois. For the rest of us, however, it’s a no brainer considering the rising tide of crime, the potential for an economic collapse that drives society to chaos, and a political climate that would like nothing more than to see Americans be forced into defending themselves with sticks and stones.
A large number of Americans see what’s coming, and they’re taking their personal safety and protection into their own hands, as evidenced by the following chart showing gun manufacturer Smith and Wesson’s quarterly revenue growth:
Read More @ SHTFPlan.com