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Karmaisking

More BIG news you won't read about until the Gates of Hell are already open: National Australia Bank just went into the Confessional near the Gates of Hell and wrote down 90% of its off-balance sheet CDOs.

It is estimated that if US banks did the same thing, they would be FORCED to write down $1 TRILLION in losses. Kaputski. No capital. Shares wiped out. Insolvent. Can't lend a dime. End of story.

Welcome to Hell. The Banks have been the ushers. Now we have to find a seat.

I told everyone this would happen years ago and was killed off, Cassandra-style. Now I see it all coming true, as the Austrian Economists predicted.

As Jim Sinclair would say: This is it, and it is NOW.

PLovering

Welcome, comrades, to the New World Order.

The NWO hates peace.

Who needs bonds, when power comes out of the barrel of a gun.

Did someone say Communism?

Abelian

Hi Elaine,

Nice reporting.

Two things:

1. Interesting article in the new york times that made me chuckle.

Entitled "A Media Powerhouse Everyone and Nobody Knows"

http://www.nytimes.com/2008/07/28/business/media/28vivi.html?ex=1374897600&en=ad07c63152324321&ei=5124&partner=permalink&exprod=permalink

" Aviv Nevo took a modest inheritance and parlayed it into a fortune by investing it with Goldman Sachs and hobnobbing with the insider crowd"

What does "The Times" consider a modest inheritance now?

10 million dollars is a modest inheritance.

2. I believe Financial Services and Healthcare are 30-40% of the country's GDP. That amounts to ~ 5 trillion dollars.

Since we know that the U.S. Healthcare system is hugely inefficient and the financial system is a bloated wreck, the GDP should really be ~ 10-11 trillion instead of the 14-15 trillion on record.

So, the current debt ceiling is 100% of GDP.


Abelian


BTW: I modified the end of the tagline...

TL

funny, Darwin actually said only a small percentage of species adhere to the strong survive theory. He even emphasized cooperative species thriving but never gets mentioned? Even the classics get censored!
http://www.sciencemag.org/cgi/content/full/309/5731/93

Royal Dutch Paper

Oh, dont worry, when W signs that rag called the housing bill he will pave the way for neo-democrats to tax the savers for this bill. Bye-bye Miz American Pie!

calvino

You don't get it, do you? I have been posting regularly here, writing to my representatives, making campaign contributions - for nothing. Just face it, you lost, I lost, we all lost. Lex Luthor at the Treasury and his pet rat at the Fed will do anything they please. There have been huge interventions in the forex markets starting Thursday in the overnight. The dollar was given an IV transfusion, because it started rolling off the cliff when this bailout was passed in the House and shrubsters chimed in his approval. I was holding out a bit of hope that Jim Bunning was going to filibuster this disembowlment of the dollar in the Senate. It was obvious that he could not do it. There is only one way for this to play out, with the destruction of the purchasing power of our money. The cretins intervening in the fx markets are just going to make sure that the destruction is world wide. Not the financial irresponsibility, rather the childish pabulum that passes for political discourse is the bell that tolls. A nation that is more interested in acting like professional football coaches or titillation bloggers can not get its head wrapped around the politics of the day. Don't have the mental tools. Far road from when every American home discussed Common Sense's pamphlets, as soon as they came off the press.

btw everyone knew about the spike in the deficit ceiling. I guess if you thought the twenty five billion CBO estimate of Fannie's losses... Once this monstrosity passed, what is the point of commenting on anything. It's just the marauders finishing off any stragglers left alive.

your_master_debator

It's becoming pretty damn obvious that this whole episode was a vehicle to transfer the ownership of US assets to foreigners in the effort to further erode US sovereignty and consolidate world-government.

It would be interesting to test this theory by predicting what happens NEXT!

Elaine Meinel Supkis

Americans don't know about hardly any of the media owners. How often does the media report on the Oxenberger family? The NYT is losing money, fast, by the way. Last weekend, I picked up their Sunday Magazine and leafed through it.

Nearly no ads! Amazing. Very slender. And had some really goofy stuff inside. TV is entirely owned or controlled by Zionists but their message is now falling on increasingly annoyed ears. People go along with Zionism if they think it is making them happier and richer.

But unhappy, poorer people begin to have a different opinion.

About the housing bill: Uncle Sam gets any potential profits on future sales of any houses that are 'saved' and Uncle Sam is increasingly owned by the Chinese and Japanese. They own 50% of all debt sold to foreigners. And this is increasingly, more and more of our debts.

Anthony

My sense,

China will supplant IMF as the agency who sets up exchange rate. in the next 5-10 yrs dollar will still be the global currency.

China will set the rate as such Euro - Renmimbi - Dollar. Then several oil producing country will park their peg lower than euro slightly higher than renmimbi. They will let the dollar float (ie. let china decide whatever the price of dollar is)

after that china will extent control of exchange rate to south east asia, korea. Then they will use the leverage to change Japan-US formation while keeping eurasia connection intake.

RobG

Well, as I predicted :-)
July 23: OMG, Elaine is going to explode tomorrow - House passes the bailout - bumps up the national debt to >$10.6 trillion.

Posted by:RobG | July 23, 2008 at 09:24 PM

Anthony

Another currency which dropped vs. the US$ was the Chinese Renminbi which fell .2% over the weekend. This was the largest decline since the dollar peg was dropped in 2005. The fall came after the Chinese Politburo signaled a shift in focus to maintaining economic growth, fueling speculation they will slow gains to aid exporters. The Politburo, the Communist Party's top decision making body, wants to cool inflation and maintain "steady and relatively fast" expansion. We could see the Renminbi's appreciation slow significantly in the second half of 2008, as the government replaces preventing overheating with maintaining growth among its top priorities.

But don't look for a major fall in the value of China's currency. China will keep the Renminbi stable in a "self-initiated controllable and gradual manner," the People's Bank of China said in a statement on its Web site yesterday, after the monetary policy committee's second quarter meeting. The statement didn't reiterate the central bank's pledge to "increase the exchange rate's flexibility," included since the third quarter of 2007. The omission of 'flexibility' is being seen as a signal that the central bank will slow the pace of Renminbi gains. But I will again remind everyone not to expect any big moves in the Renminbi, as the currency is not allowed to trade outside a .5% band against the dollar on either side of the so-called central parity rate which is set by the government.

http://www.dailypfennig.com/currentIssue.aspx?date=7/28/2008


.. oh yeah... China finds out the limit of raising currency. If the economy keeps slowing down, they will raise dollar by a lot to restart their export again. (hey, what's the use having a lot of money? Maybe they should just buy australia and entire africa for the natural resources)

Frederick N. Chase

Commenting on the July 25 Housing Rescue article, I pointed to a summary of what Ron Paul said about the housing bill.


I guess I should have posted that summary, which went like this:

1 $2.5B line of credit to the Treasury (Fannie & Freddie – ‘F & F’) is now “open-ended”

2 UNLIMITED – Treasury now allowed to buy all ‘F & F’ housing securities

2 Congress no longer involved in appropriating funds (Treasury now does)

1 National Debt Ceiling Moved up $800 BILLION (buried in the bill)

1 Treasury Bills being exchanged for unwanted ‘F & F’ securities

2 This is the asset which “backs up our currency”

2 Value of these assets are depreciating

2 Treasuries have replaced gold and silver to back US Dollar

1 Solution breeds inflation

2 Places pressure on the US Dollar

1 Mortgage industry workers “will now have to be fingerprinted.”

1 All credit card transactions will now be reported to the IRS.

Anthony

this is going to get bigger as banking collapse continues.

and slowing enconomy/unemployment still going. Retail is next.

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/28/AR2008072800953.html?hpid=topnews

The federal budget deficit will surge to nearly $490 billion this fiscal year, a record dollar amount, driven by war costs, tax rebates and a slowing economy, the White House will announce today.

Elaine Meinel Supkis

Fred, yes, Ron Paul is right about that bill. So much to report here! Can't keep up!

Arf.

But so far, I am one of the very few to point out that the mechanism for saving homes is not going to work because homeowners will cease to care for their homes. This is why it is USELESS. It will saddle us with slums, many of them 'new'. A house that is brand new can become a slum in less than ten years if no one cares about its condition!


Paul S

Well, well. So our honorable Congress raised the debt ceiling. Shocking news. That 'news' rates right up there with the headlines "Fat beby poops" or "Alcoholic visits Liquor store" or "Dishonest People can't be trusted". It shows you what our honorable members of Congress think of PayGo.I have a hard time believing this kind of news does not get people up in arms and DO SOMETHING about it. Instead it is a constant cycle of vote Dems in, vote Repubs out and vice versa. People don't get it. There isn't a dime's worth of difference between the two parties. And where is our 'honest" media in all this? They are busy either ignoring or smothering stories their political/corporate masters tell them to bury. I guess once you are an insider, you will do anything to stay an insider. #1 example: the right wing talk radio fascists. I can NOT believe people buy what is obviously propaganda. We need a third and fourth party in this country to MAKE the two corrupt parties more honest. Nobody expects total honesty from politicians, but at least you can restrain the impulse. Question: how long will it be before the next debt raise? Of course it will be done in the dark of night. Never trust a Congress that needs to get its business done in secret. Sounds like a fascist country, doesn't it?

Anthony

the new ceiling will be to small by early 2010 maybe. Depending how the Iraq war and economy go after new administration coming in.

I think China will be interesting Obviously they are going to crank up the economy again after inflation is deemed under control. And they are going to be bigger than before.


http://chinadigitaltimes.net/2008/07/china-targets-stable-fast-growth-central-bank/

China’s central bank said Sunday it would seek to create conditions for “relatively fast” economic growth in the coming months, despite the ongoing threat of inflation.

“We will use various monetary policy tools to create good conditions for stable, relatively fast growth,” the bank said on its website, outlining policy decisions made at its first-quarter policy work meeting.

The central bank’s statement came after recent figures suggested growth in China’s economy — the world’s fourth-largest — is beginning to slow.

Bear of Little Brain

So, why hasn't Little Boots signed off on the Bill today? Bloomberg said it will be mid-week. Is this normal protocol or does someone need the time?

Anthony

It ain't even close to over... hah...

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3LJHMF_2I0c&refer=home

IMF Says U.S. Housing Slump End `Not Visible,' Credit to Worsen

``At the moment, a bottom for the housing market is not visible,'' the IMF said in its Global Financial Stability Report, released today in Washington. ``Stemming the decline in the U.S. housing market is necessary for market stabilization as this would help both households and financial institutions to recover.''

The IMF, which a year ago failed to foresee the depth of the subprime mortgage collapse, stood by its April forecast for about $1 trillion in losses stemming from the U.S. mortgage crisis. While U.S. policy makers have helped contain the financial losses, ``credit risks remain elevated'' and banks need to raise more capital.

Royal Dutch Paper

Dont worry about government slums, the next president will rent them out to mexicans!

Elaine Meinel Supkis

I got my start when 18 years old, hanging out at the town dumps, getting to know the garbage crews and telling them to save me stuff. By the mid seventies, we were hauling in entire staircases made of cherry, fancy front doors with bevelled glass, antiques galore.


One friend of ours who was dumpster diving on the Upper East Side found two Chinese statues. I took one look and said, get them appraised!

They turned out to be worth over $15,000 each. My friend was very, very poor until then. He used it to buy a brownstone that had to be totally rebuilt. That is how he got started up the ladder of life!

The problem with these new slums-to-be is that most everything is 'cheap'. It looks nice but isn't exactly real. No real cherry staircases, no real bevelled glass doors, no fancy 19th century heavy brass fixtures, etc. And now the granite counters might be poisonous???? Gads.

RobG

Elaine ...

(robot voice) warning ... warning Will Robinson:

... to lend up to $25 billion to automakers and auto parts suppliers said today they had garnered 71 U.S. House members to support their search for $3.75 billion in funding over the next couple of months.
...snip...
“Funding this new program is critical to the future of the U.S. auto industry, as well as our nation’s efforts to reduce our dependence on foreign sources of oil,” said Rep. Sander Levin, D-Royal Oak. “The federal government must be an active partner in the effort to create these jobs and technologies here in the United States.” (link)

Elaine Meinel Supkis

HAHAHA. Reminds me of the auto industries in Russia and East Germany. Trabants, anyone?

CK

@Elaine: You know that the Trabant was a car ahead of its time; but we are catching up, we are catching up!

Elaine Meinel Supkis

Well, no Englishman owns their own auto manufacturing companies anymore...

DeVaul

There will be nothing at all to salvage from these hideous McMansions we built over the past 15 years. My father took me out over ten years ago to inspect one that was under construction near a golf course. Starting price: $150,000.

He showed me that it consisted of nothing more than a 2x4 frame, a wall made of chipboard, and some aluminum stapled onto the chipboard. The whole thing was then covered over with vinyl siding. I was shocked.

Not only was it built from cheap materials, it was a litteral firetrap. My father, an insurance adjuster, told me it would go up in smoke in no time at all.

The most one can get out of these houses would be 2x4's, which are useful, and maybe some roofing shingles. Oh, and maybe some copper wiring and piping.

Royal Dutch Paper

I will make a predicition master debator- to answer your question with a question. What do you do with 300 million people that are broke?

Elaine Meinel Supkis

Learn to sing the International.

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All conversations on all editorial pages about all topics: war, health, welfare, schools, diplomacy, whatever---totally ignores the growing budget deficits and how these are now destroying our future!
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