US Charity Feeds Even More Food Inflation
This is the beautiful, 120 year old Berlin, NY, town library. It is rarely open anymore due to lack of funds.
May 3, 2008
Elaine Meinel Supkis
Bush wants to fix soaring world food prices by dumping many millions of dollars that will be raised by creating more US government debt. Of course, food prices are soaring because the dollar is the main currency in the world for determining the relative value of all trade goods except with Iran, of course. And so this will INCREASE inflation of food. Meanwhile, we see England falling off the same cliff we fell off. And we visit the Fed's special window for bankrupt bankers to exchange trashy bonds for Treasuries at $50 billion a pop. Far from finishing, it is actually accelerating. More bankers are doing it more frequently, not less and less! Gads! How DARE anyone suggest the banking collapse is done?
Bush approves $770m in food crisis aid
George Bush is to create a $770m (£390m) aid package for some of the world's poorest nations in response to soaring global food prices.In a surprise announcement from the White House yesterday, Bush urged Congress to approve the additional funds for food aid and development programmes.
The money, directed primarily to Africa, has been tacked on to the broader $70bn Iraq war budget for 2009.
Yesterday, Bush told Americans: "In some of the world's poorest nations, rising prices can mean the difference between getting a daily meal and going without food.
Food prices across the globe are inflating rapidly thanks to the dying dollar flooding the earth with red ink. Are we paying for this Santa Claus food generosity by ourselves or is this just more debt piled onto the dollar? Of course, it is more debt. All these 'cures' which require the US which is going bankrupt, pouring more debt onto our ledgers will make things worse, not better. Since the world's premier currency is the dollar, the more the dollar dies, the worse it gets in all other sectors. For we are madly producing inflation! The super-cheap interest rates our central bankers are foisting on us despite roaring inflation makes inflation worse! The world isn't running out of food. It has an excess of dollars!
This is classic economics: the more money you produce by generating more loans, the more dollars there are chasing after finite things, the more devalued the dollars and the higher the price of all essential things we can't escape. So all the world's poor and working classes are being hammered by inflation. Seeing this, the Fed should consult the Volcker playbook and raise rates until inflation dies down. But they are reading the 'Great Depression' book and think we have a shortage of red ink, not an absolute ocean of red ink.
So if Bush dumps more dollars funded by selling Treasuries to China onto the world's food commodity markets, what will happen next? The price of food will go UP! Of course! We are not opening our storehouses and releasing excess food. We are plonking more useless dollars onto world markets to compete in bids on existing food stocks. Ergo: more inflation.
Merck set up offshore accounts to avoid U.S. taxes; settles with IRS for $2.3 billion
• The settlement is the second-largest ever for the IRS. The first? British pharmaceutical company GlaxoSmithKline settling for $3.4 billion.• The Merck settlement was significantly less than the $3.8 billion the IRS was seeking, but it avoids a lengthy tax fraud lawsuit.
• The tax shelter Merck set up in the Bermudas for its subsidiary company meant the company was essentially deducting money used to pay itself.
• The drugs involved were Zocor and Mevacor, both extremely popular and profitable drugs for cholesterol.
This news wasn't exactly broadcast, was it? The pirates who run Merck had to pay 2/3rds of their true taxes. They, like all pirates, wanted to park all the loot they make here, over in the Caribbean so they can get very rich and the US can go bankrupt. Of course, if the US goes bankrupt, what then? Wouldn't a Russian sub visit these pirate islands and seize the computers and trace the funds and seize them after threatening the banks in Europe? HAHAHA. Short sighted pirates don't understand, the Queen of England can no longer protect her tiny islands. The last time was the battle over the Falkland Islands versus Argentina. Argentina goes bankrupt more often than I go to the beauty parlor for a hair cut! But even so, that was a last gasp. England is also going bankrupt along with the US and for identical reasons.
Halifax survey shows house values dropping £500 a week
Halifax, the country's largest mortgage lender, said that the average home price has fallen by £8,136 since the start of the year to hit £189,027. The decline in value equates to a fall of £479 a week.It is the third major survey this week to confirm that after months of falling prices, houses are – for the first time in 12 years – worth less than they were worth a year ago.
This week, frantic English voters voted to put conservatives in power in the hopes they will save them from a collapsing banking system, collapsing housing, collapsing empire. But no one can save them since England chose to overspend for 100 years. A huge burden overhangs that island rump state.
Sales Tax Collections Decline in Most States, Rockefeller Institute Survey Finds
With 36 of the 45 states that collect sales tax reporting, revenue from sales taxes declined both nationwide and in 21 states during January to March 2008, compared to the same period a year earlier. Southeastern states were hit the hardest: nine of the 21 states reporting sales tax declines were in that region. When adjusted for inflation, sales tax revenues declined in at least 27 states. For the states reporting so far, the overall level of sales tax collections fell slightly – the first time such revenues have not grown in six years.
“The widespread declines in the sales tax are a leading indicator of economic weakening, and a harbinger of further state budget troubles,” said Rockefeller Institute Senior Fellow Don Boyd, co-author of the study. “While the last recession hit states hard via a collapsing income tax, weak consumer spending and declining sales taxes may play a greater role this time around. This unfortunate news comes at the very time that most states are negotiating budget agreements.”
This is why the crash is far from over. It has barely begun. The underlying problem never was 'not enough credits' but 'too much debts'. And we just increased our debts! Hugely. And the central bankers are trying their mightiest to create even more debts! Infinite debts. This is dumb. And they know this. But it is Santa Claus and thus, very popular. I bet Santa is really a bankrupt gambler and this is why he hides most of the year. And then eggs us into overbuying toys and junk once a year in winter when we can least afford this in the North.
The cascading collapse of the banking systems, the bond markets and the ability to live within a budget, the amoral creepiness of watching politicians make promises that are going to bankrupt us: hell's bells! What are we going to do? Of course, tax collections will fall. The housing market is seeing housing abandonment! All governments must now cut back and lay off people who then lose their homes, too, and the cycle worsens. I see NO light at the end of this tunnel. Nearly ALL our financial systems are now being paid for via the Central Bank, the Federal Reserve, pumping in billions and billions and trillions of dollars into the system and accepting any and all investments and debts as 'money.' This is pure madness since our reserve has NO RESERVES. What little they had, they are nearly done running through. And a lot of these damn reserves are actually DEBTS from our own government, not savings.
China, Russia and Japan have savings in their own reserves, trillions of dollars of savings. We have NOTHING. I went to the Federal Reserve to check out their latest sales of free money to whoever needs Funny Money™.
On January 14, 2008, the Federal Reserve conducted an auction of $30 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:Stop-out rate: 3.95 percent
Total propositions submitted: $55.526 billion
Total propositions accepted: $30.000 billion
Bid/cover ratio: 1.85
Number of bidders: 56
**********************************************************On January 28, 2008, the Federal Reserve conducted an auction of $30 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 3.123 percent
Total propositions submitted: $37.452 billion
Total propositions accepted: $30.000 billion
Bid/cover ratio: 1.25
Number of bidders: 52
**********************************************************On February 11, 2008, the Federal Reserve conducted an auction of $30 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 3.010 percent
Total propositions submitted: $58.400 billion
Total propositions accepted: $30.000 billion
Bid/cover ratio: 1.95
Number of bidders: 66
***********************************************************On February 25, 2008, the Federal Reserve conducted an auction of $30 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 3.080 percent
Total propositions submitted: $67.958 billion
Total propositions accepted: $30.000 billion
Bid/cover ratio: 2.27
Number of bidders: 72
***********************************************************On March 10, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.800 percent
Total propositions submitted: $92.595 billion
Total propositions accepted: $50.000 billion
Bid/cover ratio: 1.85
Number of bidders: 82
**********************************************************On March 24, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.615 percent
Total propositions submitted: $88.869 billion
Total propositions accepted: $50.000 billion
Bid/cover ratio: 1.78
Number of bidders: 88
*********************************************************On April 21, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.870 percent
Total propositions submitted: $88.288 billion
Total propositions accepted: $50.000 billion
Bid/cover ratio: 1.77
Number of bidders: 83
********************************************************On April 21, 2008, the Federal Reserve will offer $50 billion in 28-day credit through its Term Auction Facility. Additional information regarding the auction is listed below; the auction will be conducted as specified in this announcement, Regulation A, and the terms and conditions of the Term Auction Facility (www.federalreserve.gov/monetarypolicy/taf.htm).
Description of Offering and Auction Parameters
Offering Amount: $50 billion
Term: 28-day loan
Bid Submission Date: April 21, 2008
Opening Time: 11 a.m. EDT
Closing Time: 1 p.m. EDT
Notification Date: April 22, 2008
Settlement Date: April 24, 2008
Maturity Date: May 22, 2008
Minimum Bid Amount (per bid): $5 million
Bid Increment: $100,000
Maximum Bid Amount(per institution): $5 billion (10% of Offering Amount)
Minimum Bid Rate: 2.05 percent
Incremental Bid Rate: 0.001 percent
Minimum Award: $10,000
Maximum Award: $5 billion (10% of Offering Amount)
******************************************************
Looking at the actual numbers and other data is very important. The charts show the obvious sales and how our system is being kept afloat via this outrageous and insane system whereby the Fed accepts trash as wealth and hands out $50 billion two or three times a month! Far from solvent, it is obvious from the frantic bidding by up to 92 different banks, they are in serious trouble. This month, the Fed said they would float European and English banks...JUST LIKE WE DID IN 1928 AND ONWARDS!
There is a huge problem here: in 1928, the US was solvent. We were strong. We had a balanced budget and could lend due to the strength of our economic situation. Yet when we tried to save Europe's bankrupt nations and empires, THEY SANK US! We fell into a terrible depression! Thank you. But this time around, WE are the sinking ship and we are saving everyone? What the hell is going on?
Something is very wrong here. The Japanese carry trade keeps trying to restart but fails, I suspect. So everyone turns to the US and demands that we strengthen the dollar even as we are falling deeper into debt, as fast as ever! The US cannot do this. We can't save the world's banking system. All we can do is drive it deeper into the red! And if we think we can manufacture dollars and use them to fix this mess, say hello to food inflation.
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