Added: 3. März 2010
Tags: AIG, Bailout, Banks, Bill Clinton, Bubble, CO2, Commodities, Derivatives, Derivatives market, Economy, Financial Crisis, Global News, Goldman Sachs, Government, Henry Paulson, Internet, Larry Summers, Mortgage crisis, Mortgages, Oil, Oil Prices, Politics, Robert Rubin, Timothy Geithner, U.S., Wall Street
Date: 7th Mar 10
Tags: AIG, Ben Bernanke, Economy, Fed, Federal Reserve, Financial Crisis, Global News, Marc Faber
 Economist Steve Keen |
HONG KONG (MarketWatch) — Australia’s seemingly bulletproof economy could soon face fallout from high debt levels and purportedly misguided policies designed to pump up asset prices, according to an outspoken skeptic of the nation’s housing boom.
Economist Steve Keen of the University of Western Sydney, who claims to have accurately foreseen the global financial crisis, said he’s been dismayed by what he sees as a growing nationwide housing bubble stoked by government efforts to forestall economic pain.
Keen points to a first-time homebuyer subsidy program, various other stimulus programs, and a 4-percentage-point reduction in interest rates — policies introduced in the wake of the 2008 crash and which he termed “The Boost” — as having helped fueled a new housing boom and a 6% rise in mortgage debt last year.
“The Boost has … given Australia a dubious distinction when compared to the rest of the OECD. Yes, we are the only country that avoided a technical recession; but we are also the only country where debt levels are rising once more compared to GDP, rather than falling,” Keen wrote in comments posted on his Web site, keenwalk.com.au. Continue reading »
Tags: Australia, Bubble, Debt, Economy, Financial Crisis, GDP, Government, Housing, Politics
Loooong article!
See also:
- The No.1 Trend Forecaster Gerald Celente: The Terror And The Crash of 2010
Soybean field
If you read any economic, financial, or political analysis for 2010 that doesn’t mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.
The 2010 Food Crisis Means Financial Armageddon
Over the last two years, the world has faced a series of unprecedented financial crises: the collapse of the housing market, the freezing of the credit markets, the failure of Wall Street brokerage firms (Bear Stearns/Lehman Brothers), the failure of Freddie Mac and Fannie Mae, the failure of AIG, Iceland’s economic collapse, the bankruptcy of the major auto manufacturers (General Motors, Ford, and Chrysler), etc… In the face of all these challenges, the demise of the dollar, derivative markets, and the modern international system of credit has been repeatedly forecasted and feared. However, all these doomsday scenarios have so far been proved false, and, despite tremendous chaos and losses, the global financial system has held together.
The 2010 Food Crisis is different. It is THE CRISIS. The one that makes all doomsday scenarios come true. The government bailouts and central bank interventions, which have held the financial world together during the last two years, will be powerless to prevent the 2010 Food Crisis from bringing the global financial system to its knees.
Financial crisis will kick into high gear
So far the crisis has been driven by the slow and steady increase in defaults on mortgages and other loans. This is about to change. What will drive the financial crisis in 2010 will be panic about food supplies and the dollar’s plunging value. Things will start moving fast.
Dynamics Behind 2010 Food Crisis
Early in 2009, the supply and demand in agricultural markets went badly out of balance. The world experienced a catastrophic fall in food production as a result of the financial crisis (low commodity prices and lack of credit) and adverse weather on a global scale. Meanwhile, China and other Asian exporters, in an effort to preserve their economic growth, were unleashing domestic consumption long constrained by inflation fears, and demand for raw materials, especially food staples, exploded as Chinese consumers worked their way towards American-style overconsumption, prodded on by a flood of cheap credit and easy loans from the government.
Normally food prices should have already shot higher months ago, leading to lower food consumption and bringing the global food supply/demand situation back into balance. This never happened because the United States Department of Agriculture (USDA), instead of adjusting production estimates down to reflect decreased production, adjusted estimates upwards to match increasing demand from china. In this way, the USDA has brought supply and demand back into balance (on paper) and temporarily delayed a rise in food prices by ensuring a catastrophe in 2010. Continue reading »
Tags: Commodities, Debt, Dollar, Economy, Environment, Farmers, Fertilizer, Financial Crisis, Food, Food Crisis, Food Prices, Gold, harvest, Society, U.S., USDA, Weather
Added: 25th Dec 09
Tags: Barack Obama, Congress, Constitution, Debt, Economy, Fannie Mae, Financial Crisis, Freddie Mac, Government, Healthcare, Obama administration, Peter Schiff, Politics, U.S.
- Opium cultivation out of control, U.N. says (MSNBC, Sept. 2, 2006):
Afghan crops total 92 percent of world’s supply, exceed global consumption
KABUL, Afghanistan - Afghanistan’s world-leading opium cultivation rose a “staggering” 60 percent this year, the U.N. anti-drugs chief announced Saturday in urging the government to crack down on big traffickers and remove corrupt officials and police.
- Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering (2008)
Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations’ drugs and crime tsar has told the Observer.
Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.
This will raise questions about crime’s influence on the economic system at times of crisis. It will also prompt further examination of the banking sector as world leaders, including Barack Obama and Gordon Brown, call for new International Monetary Fund regulations. Speaking from his office in Vienna, Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor,” he said.
Some of the evidence put before his office indicated that gang money was used to save some banks from collapse when lending seized up, he said.
Tags: Banks, Drugs, Economy, Financial Crisis, Global News, U.N., U.S.
Why is it that Barnaby Joyce is called an extremist for telling the truth?
If Barnaby Joyce is an extremist then what is Société Générale ?
- Société Générale prepares clients for ‘global economic collapse’
Famous investor and billionaire Jim Rogers has warned already several times about the same thing. Nobody would dare calling him an extremist:
- JIM ROGERS WAS RIGHT (05/06/09):
“There is a possibility that the American government under this new President will default on its loans sometimes in the next four years. The situation is precarious.”
“The American government has more than tripled its own debt in the last six months.”
“The Federal Reserve in America has tripled its balance sheet in the last six months.”
“There is a very good chance that America will default on its government debt sometimes during this administration.”
“And there is an extremely good chance that the currency will be very debased and weakened a lot during this presidency.”
“These are not good times. This is not over yet. It is far from being over yet. Prepare yourself.”
“What America is doing now is consuming an increasing debt as a way to solve their problems. Listen, that’s what caused the problems.”
“America has been going deeper and deeper into debt for 25 years, that is what caused the problems.”
Now this genius (Obama) comes along and says: ‘We are doing more of the same’!”
“It’s not going to work.”
- Jim Rogers: We are going to have another Depression in the U.S.
- Jim Rogers on CNBC: ‘US Bonds Are The Next Bubble’
- Jim Rogers on CNBC: I expect a currency crisis (06/04/09)
Ron Paul, Peter Schiff, Max Keiser, Marc Faber and many others have given dire warnings about the future of the US:
- David Tice: Gold Heading to $3000 Unless America Hits the ‘Reset’ Button
- Ron Paul: The US is Bankrupt
- Ron Paul: Be Prepared for the Worst
- Peter Schiff: The Truth Behind China’s Currency Peg
Maybe the real crisis has just started:
- Moody’s: Top US And UK Debt Ratings May ‘Test The Aaa Boundaries’
- Bond Bubble: US Treasuries’ Biggest Overseas Buyer May Sell
- US Government Is Facing Wave of Debt Payments
- US Dollar Slump Persisting as Top Analysts See No Bottom
- Obama administration posts widest-ever October budget deficit
- China’s Premier Warns Obama to Get US Deficit to an ‘Appropriate Size’
- Fall Of The Republic - The Presidency Of Barack H. Obama (The Full Movie HQ)
I am telling you to listen to these extremists and prepare yourself or you will lose everything, even your life!
Barnaby Joyce warns of US ‘Armageddon’
THE OPPOSITION finance spokesman, Barnaby Joyce, believes the United States government could default on its debt, triggering an ”economic Armageddon” which will make the recent global financial crisis pale into insignificance.
Senator Joyce said yesterday he did not mean to alarm the public but there needed to be a debate about Australia’s ”contingency plan” for a sovereign debt default by the US or even by a local state government.
”A default by the US means complete economic collapse around the world and the question we have got to ask ourselves is where are we in that,” Senator Joyce said.
His warning came as the Rudd Government ramped up its attack on Senator Joyce as an economic extremist by highlighting his strong opposition to Chinese sovereign investment in Australia.
The Treasurer, Wayne Swan, said it was a cause for concern that Senator Joyce had been elevated ”from the reactionary fringe of our economic debate to the second-most senior economic policymaking job in the alternative government”.
The scrutiny of foreign investment bids was adequate and ”if we were to follow the advice of some of the extremists on foreign investment, it could cost something like 20,000 jobs right across Australia”.
Senator Joyce said the chances of a US debt default were distant but real and politicians were not doing the electorate a favour by refusing to acknowledge the risk.
He said the Federal Government’s debt would push up interest rates and predicted that some state Labor governments would not be able to repay their borrowings.
”The Federal Government has $115.7 billion in debt, Australian government securities, notes and bonds on issue, and the states have another $170 billion in debt.
”We have to ask whether the states have the capacity to repay that. I would say in some instances they do not, particularly Queensland.”
Senator Joyce said that if the US recovered, global funds would flow back into North America. ”There will be only one way Australia will be able to keep funds here and that is by putting up interest rates, which will therefore bring real costs back to households,” he said.
”That is the first scenario, which is extremely bad for Australia. The worse scenario is where the US doesn’t repay its debt - the $2 trillion in debt it owes to the Chinese, the $1 trillion in debt it has to the Japanese and the $US1 trillion in debt to others - and then we are really nailed.
”The outcome is a shift away from the US dollar as the international trading currency and a shift to the Chinese yuan, and China becomes an immensely powerful player overnight.
”It’s the real financial crisis, and the real financial crisis will mean this preamble we have just had pales into insignificance.”
Asked what sort of contingency plan he would advocate, Senator Joyce said it was like trying to prepare for a tidal wave but the local economy should have more self-reliance.
”Things you look for in that economic Armageddon are the capacity to feed ourselves, the capacity to provide the fundamentals in medicines and basic fundamental requirements for our nation.”
MARK DAVIS AND PHILLIP COOREY
December 11, 2009
Source: The Sydney Morning Herald
Tags: Barnaby Joyce, Debt, Dollar, Economy, Financial Crisis, Global News, Government, Politics, U.S.
See also:
- Moody’s Puts US, UK on Chopping Block (Wall Street Journal)
- Moody’s Says US, UK Have to Fix Public Finances (ABC New)
- US, Britain may test Aaa boundaries, Moody’s warns (MarketWatch)
Dec. 8 (Bloomberg) — Moody’s Investors Service said its top debt ratings on the U.S. and the U.K. may “test the Aaa boundaries” because their public finances are worsening in the wake of the global financial crisis.
The U.S. and U.K. have “resilient” Aaa ratings, as opposed to the “resistant” top ratings of Canada, Germany and France, analysts led by Pierre Cailleteau in London said in a report. None of the top-rated countries is “vulnerable,” or have public finances that are “stretched beyond the point of ‘no return’ to the Aaa category,” New York-based Moody’s said.
Tags: Canada, Debt, Economy, Financial Crisis, France, Germany, Government, Moody's, Politics, Rating, U.K., U.S.
Dominique Strauss-Kahn
The public will not bail out the financial services sector for a second time if another global crisis blows up in four or five years time, the managing-director of the International Monetary Fund warned this morning.
Dominique Strauss-Kahn told the CBI annual conference of business leaders that another huge call on public finances by the financial services sector would not be tolerated by the “man in the street” and could even threaten democracy.
“Most advanced economies will not accept any more [bailouts]…The political reaction will be very strong, putting some democracies at risk,” he told delegates.
“I do believe that the financial sector needs to contribute both to the costs of the financial crisis and to reduce recourse to public funds in the future,” he said.
Mr Strauss-Kahn said that imposing high capital ratio requirements on banks was one price the financial services sector must pay to prevent the threat of further multi-billion dollar bailouts.
Tags: Bailout, Dominique Strauss-Kahn, Economy, Financial Crisis, IMF, Politics
Herman Van Rompuy is just another Bilderberg puppet!
In case you have missed this:
- Lord Christopher Monckton: Is President Obama Poised to Surrender the Constitution and US Sovereignty to World Government? (Must-see.)
- Has Anyone Read the Copenhagen Agreement? U.N. plans for a new ‘world government’ are scary (The Wall Street Journal):
“We can only hope that world leaders will do nothing more than enjoy a pleasant bicycle ride around the charming streets of Copenhagen come December. For if they actually manage to wring out an agreement based on the current draft text of the Copenhagen climate-change treaty, the world is in for some nasty surprises. Draft text, you say? If you haven’t heard about it, that’s because none of our otherwise talkative political leaders have bothered to tell us what the drafters have already cobbled together for leaders to consider. And neither have the media.”
…
“So far there have been more than a million hits on the YouTube post of his address. It deserves millions more because Lord Monckton warns that the aim of the Copenhagen draft treaty is to set up a transnational “government” on a scale the world has never before seen.”
Now listen to the new EU puppet President …
“2009 is also the first year of global governance, with the establishment of the G20 in the middle of the financial crisis. The climate conference in Copenhagen is another step towards the global management of our planet.” - Herman Van Rompuy
Added: 19. November 2009
Tags: Bilderberg, Climate Change, Copenhagen, Environment, EU, Financial Crisis, G20, Global News, Herman Van Rompuy, New World Order, Politics, Society
