Sunday, December 27, 2009

Monday 12-28 Inflation 1 Deflation 0

The Financial Sense website organized a debate between the inflationists and the deflationists. Mish Shedlock represented the deflationists. Mish Shedlock said that the FED's Federal Open Market Committee had been buying up worthless mortgages or Mortgage Backed Securities from the banks and giving the banks cash reserves. He said these reserves were not lent out because the banks knew that in the future they would have to buy back these worthless MBS. Not anymore. Consider what the government did to you over the Christmas holidays.

Treasury removes cap for Fannie and Freddie aid The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

Now the FED can return the MBS to the banks so they can sell them to the Treasury. The Treasury can sell a few trillion dollars in bonds to the FED. The only losers will be the those poor people who try to buy a loaf of bread for less than ten dollars.

The whole world knows the US government has decided to inflate the dollar to infinity and will soon act accordingly. Please note the truism of economics that in an inflation the first person to get hold of newly printed dollars gets most of the benefit and the person with their future tied up in savings and pensions loses the most.

That means the bankers win and we lose.

Video: Foreign Troops on the Streets of America? This features Alex Jones. He shows video of Dutch troops in a training exercise in California kicking in doors and seizing weapons from unemployed Americans.

Senator Joe Lieberman: Yemen will be 'tomorrow's war' if pre-emptive action not taken Lieberman, who helms the Senate Homeland Security and Governmental Affairs Committee, said on "Fox News Sunday" that the U.S. will have to take an active approach in Yemen

U.S. rabbi involved in sex scandal led fight against Israel conversions A report in the New York Post earlier this week revealed a sensational story about "a prominent Orthodox rabbi has been caught on tape discussing his apparent love affair with a shiksa he was converting to Judaism."

The woman involved is 32-year-old Shannon Orand of Houston, who still seeks to convert from Christianity to Judaism. The bulk of the report deals with embarrassing comments that the rabbi made during a phone call, during which he was recorded demanding the woman perform a number of sexual services for himself and his friends in exchange for granting her a conversion certificate.

Detroit-Bound Airline Passenger Was Ill, Not a Threat, Sources Say

We're Screwed! founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system.

Video: Mortal motor city: Detroit on the edge

Video: Jewish South African, Ronnie Kasrils, compares Israel to apartheid era South Africa

Gaza Freedom Marchers: 38 detained by Egypt “Egyptian security forces detained a group of 30 internationals in their hotel in el-Arish and another group of 8 at the bus station. They also broke up a memorial action commemorating the Cast Lead massacre at the Kasr al Nil Bridge,” the statement asserted.

Video: Gaza aid held up in Jordan

Princeton Economist and Computer Scientists Show that Derivatives Are Inherently Vulnerable to Fraud Arora noted that the problem arises from asymmetric information between buyers and sellers, and goes against conventional wisdom in economic theory, which holds that derivatives reduce the negative effects of such unequal information.

Video: Shameless Sen Baucus (D) stewed on Senate floor

Global Food Crisis 2010 Means Financial Armageddon

US testing unproven weapons in Afghanistan

Video: Cliff High Predicts Dollar Collapse and the Beginnings of Revolution Worldwide By July 7th

Make AIG's Emails Public we gave them 180 billion dollars so the least they can do is let us read their emails.

Tulsa-based Arrow Trucking suspends operations, lays off

Michigan Forces Business Owners Into Public Sector Unions; Detroit's Aura of Hopelessness Not satisfied with wrecking the auto sector and most of the state itself, unions and the state of Michigan conspired to force small business owners into unions the businesses want no part of and did not even vote for.

Detroit students have a greater chance of ending up in prison than graduating high school.

Video: Detroit in RUINS! (Crowder goes Ghetto)

Max Keiser: “The Americans no longer have the means to save themselves.” Haven’t seen this posted anywhere else, but it’s Martin Wolf speaking in Singapore. This, in my opinion, is going to be one of the biggest stories over next ten years. The dollar, obviously, can no longer function as reserve currency; but it’s one thing identifying the problem, and another thing fixing it, especially while that system is still operating. It seems we prefer collapse to motivate us to change course. Anyway, your ideas for solutions? Or, do you see no problem with what we have?

Do we need a new reserve currency? “Because the dollar, to my mind, given its underlying conditions, is no longer a credible long-term store of value,” said Wolf.

“The Americans no longer have the means to save themselves, this is what I think people don’t understand. There is no credible American policy,” said Wolf.

I disagree. We need to balance our trade deficit. This will require us to create a non-interest bearing currency to replace the Federal Reserve Note. We also need to reduce oil imports and solve our budget problems by kicking out 20 million plus illegal aliens and sending some H1-B visa holders home. We also need to get hold of some of the advanced scientific research now hidden from us by the secret government. We need to use these advanced energy systems and anti-gravity to build completely new industries to provide jobs.

Brace For Impact: In 2010, Demand For US Fixed Income Has To Increase Elevenfold... Or Else Here is the only math you need to know as we all look at 2010: in 2009 US Dollar denominated fixed income supply, net of the Fed's Quantitative Easing operations, was $190 billion. In 2010 it will be $2,060 billion, an eleven fold increase.

Warren Buffett Eliminates 21,000 Jobs as Manufacturing, Retail Slump

Gee, Who WASN'T Bribed?Now things are heating up:

Just hours after federal agents charged banker Allen Stanford with fleecing investors of $7 billion, the disgraced financier received a message from one of Congress' most powerful members, Pete Sessions.

``I love you and believe in you,'' said the e-mail sent on Feb. 17. ``If you want my ear/voice -- e-mail,'' it said, signed ``Pete.''

Stanford hosted New York Congressman John Sweeney's wedding dinner at his five-star restaurant in Antigua in 2004 -- toasting the couple for photographers -- and staged a cocktail fundraiser for now-disgraced Ohio congressman Bob Ney at his bayfront Miami office.

In time, the group of lawmakers, which became known as the ``Caribbean Caucus,'' would take 11 more trips -- the costs picked up by the Inter-American Economic Council, a nonprofit funded by Stanford.

Yahoo Sells All Its Users Private Email Contents to U.S. Agencies for Small Price

More herbicide use reported on genetically modified crops A report has found that farmers are using more herbicides on genetically engineered soybeans, corn, and cotton because of resistant weeds.

Obamisms to Retire in 2010 “Let me be clear” - Anytime The One utters this phrase you can be assured of two things. First, he is not going to be clear. He is about to say something completely contradictory to something he has already said.

Elite U.S. Force Expanding Hunt in Afghanistan Secretive branches of the military’s Special Operations forces have increased counterterrorism missions in Afghanistan and, because of their success, plan an even bigger expansion next year, according to American commanders.

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