The Chart That Scares The "1%" The Most
Capitalists
have been gripped by 'systemic fear' making them worry not about the
day-to-day movements of growth, employment, and profit, but about
'losing their grip'. An interesting recent article by the Real-World Economics Review on the Asymptotes of Power focuses on the fact that the capitalists are forced to realize that their system may not be eternal,
and that it may not survive in its current form. The authors fear
that, peering into the future, the '1%' realize that in order to
maintain (or further increase) their distributional power (their net
profit share of national income - which hovers at record highs) they
will have to unleash even greater doses of social 'violence' on the
lower classes. The high level of force already being applied makes them
increasingly fearful of the backlash they are about to receive (think
Europe to a lesser extent) and nowhere is this relationship between the
wealthy capitalists and social upheaval more evident than in the
incredible correlation between the Top 10% share of wealth and the
percent of the labor force in prison. In order to have reached
the peak level of power it currently enjoys, the ruling class has had
to inflict growing threats, sabotage and pain on the underlying
population. Although there are no hard and fast rules
here, it is doubtful that this massive punishment can be increased much
further without highly destabilizing consequences. This crisis is rooted in our past sins and we are unlikely to escape the punishment we justly deserve.Markets Losing Hope After China PMI Hits 7 Month Low
HSBC's Flash Manufacturing PMI printed at 48.1 - its lowest in 7 months as contraction continues in the world's growth engine - as inventories rise at a faster rate and new export orders plunged at the fastest rate since March 2009. Risk markets were already leaking lower before this but extended losses with ES down 6pts from the close (and over 11 from the day's highs). Treasuries are bleeding a little lower in yield but the real action is an exaggerated slide in WTI (which is rapidly heading towards a sub-$80 handle) and EURUSD which has dropped back to the day's lows around 1.2660. Copper, Gold, and Silver are also sliding lower as AUD weakens (as we suggested last night) back to 1.0150.
Abandoning Ship - The Eurozone Is Failing At An Accelerating Rate
What’s next…
One of the things that’s really unique about this part of the world is having access to so many people with first-hand experience of living under Soviet rule. It’s a bizarre thing to say, but the stories they have to tell are extraordinary. ast night I had dinner with some friends, including one woman who was just a child at the end of World War II. She explained to me that her family had been wealthy landowners near the capital city… until the Soviet-controlled government came in, confiscated all of their property, and shipped the adults off to Siberia. “There were so many opportunities to leave beforehand,” she explained, ”but they just never thought things would ever get that bad here. Everyone saw what happened in other countries, but my family never expected that it would happen to them.” While most people probably aren’t going to end up in Siberia anytime soon, the lesson is still valuable.The "American Exceptionalism" Paradigm Is Broken
The
revaluation that is underway now is beyond the simple scope of
corporate earnings valuations, going to the very core of the system
itself. Just like the equity pricing regime (and investor expectations
for equity assets) needs to adjust to the twelve-year-old bear market
reality, pricing within the global banking system as a whole needs to
adjust to the reality that the artificial growth of the economic
textbook is not replicable. The economic truth of 2012 is that much of
the science of economics, and the foundation that gives to finance and
financial pricing, was a temporal anomaly befitting only those specific
conditions of that bygone era. In other words, the entire
financial world needs to reset itself outside the paradigm of
pre-2008. The secular bear market in US equities is one strand of this
changing landscape, perhaps the first stirring of the collapse of the
activist central bank experiment. In the end, the potential
selling pressure of the dollar shortage is irresistible, no matter how
“cheap” stock prices are to earnings, but none of it may matter in the
grander scheme of a dramatic reset to the global system. The inability
of that global system to escape this critical state, to simply move
beyond crisis and function “normally” again, demonstrates conclusively,
in my opinion, the foundational transformation that is still taking
place well beyond the stock bear. Everything is a locked feedback loop
of negative pressures in this age, no matter how much we want to see
“value” where and how it used to exist. Paradigm shifts are rarely orderly, but there are warning signs.
China Has To Buy Commodities
Admin at Jim Rogers Blog - 2 hours ago
China has to buy commodities. They need the stuff and they don’t have it.
If you have nickel they’re going to pay you, and pay you on time. - in CNBC
Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), SPDR Gold Trust
(ETF) (NYSE:GLD), iShares Silver Trust (ETF) (NYSE:SLV), iPath Dow
Jones-UBS Cotton Subindex Total Return ETN (NYSE:BAL);
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest ... more »
Operation Twist is extended until end of year and in duration/
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 4 hours ago
Good
evening Ladies and Gentlemen:
Gold closed down today by $7.40 to $1614.80. Silver rose by 2 cents to
$28.38.
The entire world checked to Ben Bernanke today and as I forecasted to
you yesterday, he extended operation twist to include the purchase of
longer dated bonds and the selling of treasury bonds of three year
duration or less. Because the net effect is zero, it does not add to the
China: It`s A Huge Place
Admin at Jim Rogers Blog - 5 hours ago
China has 1 billion 300 million people. It’s much bigger than the US both
in population and land area. It’s a huge place. - *in CNBC *
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
Prepare For Market Seizures
Eric De Groot at Eric De Groot - 8 hours ago
Liquidity or velocity always contracts during panics. They're particularly
acute when debt burdens and complacency are high. Headline: Prepare for
Lehmans re-run, Bank official warns Banks and traders must prepare for a
devastating market seizure as governments grapple with the escalating
economic crisis in Europe, a Bank of England policymaker has warned. Cheap
and ready access to...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]What Is Executive Privilege?
There
has been much talk today about Obama's use of the "executive
privilege" yet few are familiar with the details of this relatively
unknown presidential option. The AP sheds much needed light on this
practice: perhaps the most fitting, to the constitutional expert
president, is that the "privilege" isn't in the Constitution nor has been clearly defined by the courts. In
other words - just the kind of loophole that one needs to mask the
fact that the very person tasked with imposing justice is himself
guilty of performing just the opposite. Yet Obama has only used it once
(so far) during his tenure as president. Dubya used it six times, Bush
Sr used it once also. Slick Willie however takes the cake with 14
cases of executive privilege during his 8 years on top.
from ABillyRock
from RTAmerica:
from 21stCenturyWireTV:
Financial guru Max Keiser speaks with Patrick Henningsen from Infowars.com in London, about financial terrorism, the Euro crisis in Ireland and Greece, and chronicles the devastation of JP Morgan’s balance sheet by a new and emerging “Silver Liberation Army”, led by Mexican billionaire Hugo Salinas Price.
Financial guru Max Keiser speaks with Patrick Henningsen from Infowars.com in London, about financial terrorism, the Euro crisis in Ireland and Greece, and chronicles the devastation of JP Morgan’s balance sheet by a new and emerging “Silver Liberation Army”, led by Mexican billionaire Hugo Salinas Price.
The
federal government’s criminal Hegelian plan to create crime along the
US border and then ride in as the savior with new gun restrictions – is
now in retreat
by Patrick Henningsen, Infowars:
The House Oversight Committee hearings have put both Eric Holder and
the White House on their back heels this morning, further fueling a
scandal which has now forced the White House into a rear-guard action.
In a move that is certain to fuel speculation about Barack Obama’s knowledge of the Federal government’s clandestine gun-running operation into the Mexican black market, the President has moved to claim ‘executive privilege’ regarding any documents relating to the notorious “Operation Fast and Furious.”
The case has reached a critical juncture as the House panel has finally moved to hold Attorney General Eric H. Holder Jr. in criminal contempt after he failed to comply with official Congressional requests to hand over thousands of cables and documents relating to the scandal.
Read More @ Infowars.com
by Patrick Henningsen, Infowars:
The House Oversight Committee hearings have put both Eric Holder and
the White House on their back heels this morning, further fueling a
scandal which has now forced the White House into a rear-guard action.In a move that is certain to fuel speculation about Barack Obama’s knowledge of the Federal government’s clandestine gun-running operation into the Mexican black market, the President has moved to claim ‘executive privilege’ regarding any documents relating to the notorious “Operation Fast and Furious.”
The case has reached a critical juncture as the House panel has finally moved to hold Attorney General Eric H. Holder Jr. in criminal contempt after he failed to comply with official Congressional requests to hand over thousands of cables and documents relating to the scandal.
Read More @ Infowars.com
by Chris Mullen, Gold Seek:
The Metals:
Gold fell $28.82 to as low as $1590.78 just after the fed’s announcement before it climbed back above $1620 over the next couple of hours of trade, but it then fell back off into the close and ended with a loss of 0.82%. Silver slipped to $27.73 just after the fed’s announcement before it also bounced back higher, but it then dropped again in late trade and ended with a loss of 1.23%.
Euro gold fell to about €1266, platinum lost $19.50 to $1455, and copper fell 6 cents to about $3.37.
Gold and silver equities fell over 2% in the first 40 minutes of trade before they rose to see about 1% gains after the fed’s announcement, but they then fell back off again in late trade and ended with almost 1% losses.
Read More @ GoldSeek.com
The Metals:Gold fell $28.82 to as low as $1590.78 just after the fed’s announcement before it climbed back above $1620 over the next couple of hours of trade, but it then fell back off into the close and ended with a loss of 0.82%. Silver slipped to $27.73 just after the fed’s announcement before it also bounced back higher, but it then dropped again in late trade and ended with a loss of 1.23%.
Euro gold fell to about €1266, platinum lost $19.50 to $1455, and copper fell 6 cents to about $3.37.
Gold and silver equities fell over 2% in the first 40 minutes of trade before they rose to see about 1% gains after the fed’s announcement, but they then fell back off again in late trade and ended with almost 1% losses.
Read More @ GoldSeek.com
by Kenneth Rapoza, Forbes:
Brazil, Russia, India and China, the BRIC countries, are back to
talking about creating a unified financial system where they can avoid
euro and dollar volatility. This time, a pooling of Central Bank
dollars from the countries in case liquidity dried up as the world
tracks the West’s crisis momentum.
Regardless of the amount of difficulty involved, the big four emerging markets plus South Africa said earlier this week they were considering setting up a foreign-exchange reserve pool and a currency-swap arrangement in an effort to avoid any credit crisis stemming from the advanced economies.
Read More @ Forbes.com
Brazil, Russia, India and China, the BRIC countries, are back to
talking about creating a unified financial system where they can avoid
euro and dollar volatility. This time, a pooling of Central Bank
dollars from the countries in case liquidity dried up as the world
tracks the West’s crisis momentum.Regardless of the amount of difficulty involved, the big four emerging markets plus South Africa said earlier this week they were considering setting up a foreign-exchange reserve pool and a currency-swap arrangement in an effort to avoid any credit crisis stemming from the advanced economies.
Read More @ Forbes.com
from Silver Doctors:
While the market is fixated on $267 billion in TWIST but no new QE
announcement, the G20 has proposed a £600 billion bailout for Spain
& Italy.
The will he or won’t he QE debate is meaningless. The Western Central banks will print unfathomable amounts- when it is required. They can pretend it is not currently required, but delaying the implementation will only require a bigger counterfeiting gun when the time comes.
European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.
Read More @ SilverDoctors.com
from RonPaul2008dotcom:
While the market is fixated on $267 billion in TWIST but no new QE
announcement, the G20 has proposed a £600 billion bailout for Spain
& Italy.The will he or won’t he QE debate is meaningless. The Western Central banks will print unfathomable amounts- when it is required. They can pretend it is not currently required, but delaying the implementation will only require a bigger counterfeiting gun when the time comes.
European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.
Read More @ SilverDoctors.com
by The Daily Bell:
The professors called for study
laying out the pros and cons of a return to the D-Mark, or the creation
of a new currency or “North Euro” led by Germany, the Netherlands, and
like-minded states. The idea of a North Euro — or “Thaler”, the coin of
the late Holy Roman Empire
— was first noted by the former chief of the German Industry
Federation, Hans-Olaf Henkel. It would let southern EMU states to keep
the euro and uphold euro debt contracts. The region could reflate and
regain trade competitivenes with a weaker exchange rate.
While the letter is unlikely to sway thinking in Berlin, such radical
proposals are gaining a wider hearing. Georg Schuh, chief investor of Deutsche Bank‘s
DB Advisers, said the crisis is terminal. “A break-up of the eurozone
is very likely. Capital markets have already priced it it. I think we
are in the end-phase,” he said. – Washington Times
Dominant Social Theme: We need new ideas so why not return to an old one?
Free-Market Analysis: As the EU continues to unravel the idea of a Northern EU complete with its own currency seems to be becoming more feasible.
Read More @ TheDailyBell.com
from Fabian4Liberty:
The professors called for study
laying out the pros and cons of a return to the D-Mark, or the creation
of a new currency or “North Euro” led by Germany, the Netherlands, and
like-minded states. The idea of a North Euro — or “Thaler”, the coin of
the late Holy Roman Empire
— was first noted by the former chief of the German Industry
Federation, Hans-Olaf Henkel. It would let southern EMU states to keep
the euro and uphold euro debt contracts. The region could reflate and
regain trade competitivenes with a weaker exchange rate.
While the letter is unlikely to sway thinking in Berlin, such radical
proposals are gaining a wider hearing. Georg Schuh, chief investor of Deutsche Bank‘s
DB Advisers, said the crisis is terminal. “A break-up of the eurozone
is very likely. Capital markets have already priced it it. I think we
are in the end-phase,” he said. – Washington TimesDominant Social Theme: We need new ideas so why not return to an old one?
Free-Market Analysis: As the EU continues to unravel the idea of a Northern EU complete with its own currency seems to be becoming more feasible.
Read More @ TheDailyBell.com
from Fabian4Liberty:
from KingWorldNews:
With the Fed extending Operation Twist, today King World News
interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get
his take on what the Fed has done. Fleckenstein was quite candid in
his criticism of the Fed. He told KWN, “Bernanke has taken a half-step
towards doing something aggressive,” but “The reality is the Fed’s
optimism is misplaced because the Fed doesn’t understand that the Fed is
the problem.” Here is what Fleckenstein had to say about today’s move
by the Fed: “When we spoke after the last FOMC meeting, at that
time everyone was concerned there would be no more easing of any kind
because the Fed was so sanguine about its outlook. I suggested they
were dead wrong about that and they would be back easing before long.”
Fleckenstein continues @ KingWorldNews.com
With the Fed extending Operation Twist, today King World News
interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get
his take on what the Fed has done. Fleckenstein was quite candid in
his criticism of the Fed. He told KWN, “Bernanke has taken a half-step
towards doing something aggressive,” but “The reality is the Fed’s
optimism is misplaced because the Fed doesn’t understand that the Fed is
the problem.” Here is what Fleckenstein had to say about today’s move
by the Fed: “When we spoke after the last FOMC meeting, at that
time everyone was concerned there would be no more easing of any kind
because the Fed was so sanguine about its outlook. I suggested they
were dead wrong about that and they would be back easing before long.”Fleckenstein continues @ KingWorldNews.com
by Mike Adams, Natural News:
The level of outright criminality
in the Obama administration is now apparent to almost everyone. In the
face of incriminating documents being released regarding the lawbreaking
Fast and Furious operation pulled off by Attorney General Eric Holder,
President Obama has invoked executive order to prevent their release.
He followed it by saying, “I am not a crook.”
Oh wait, that was Nixon. But it’s hard to tell the difference anymore except that Nixon’s crimes pale in comparison to the crimes being committed by the Obama administration.
This is an administration that has abolished due process and legalized secret military arrests, interrogations and imprisonment, seized control over U.S. farms, livestock and seeds, created secret “kill lists” of American citizens to be murdered by the state (including at least one young girl), escalated the failed War on Drugs, paid off Wall Street banksters with another trillion dollars in bailout money, conspired with Monsanto to eliminate regulation of GMOs, and expanded both DHS and the TSA to keep violating Americans’ Fourth Amendment rights across the airports (and city streets) of America.
Read More @ NaturalNews.com
The level of outright criminality
in the Obama administration is now apparent to almost everyone. In the
face of incriminating documents being released regarding the lawbreaking
Fast and Furious operation pulled off by Attorney General Eric Holder,
President Obama has invoked executive order to prevent their release.He followed it by saying, “I am not a crook.”
Oh wait, that was Nixon. But it’s hard to tell the difference anymore except that Nixon’s crimes pale in comparison to the crimes being committed by the Obama administration.
This is an administration that has abolished due process and legalized secret military arrests, interrogations and imprisonment, seized control over U.S. farms, livestock and seeds, created secret “kill lists” of American citizens to be murdered by the state (including at least one young girl), escalated the failed War on Drugs, paid off Wall Street banksters with another trillion dollars in bailout money, conspired with Monsanto to eliminate regulation of GMOs, and expanded both DHS and the TSA to keep violating Americans’ Fourth Amendment rights across the airports (and city streets) of America.
Read More @ NaturalNews.com
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