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Socialist Dictatorship: Taxpayers to Pay $700B Bailout

U.S. Treasury Proposes $700B Bailout Plan For Wallstreet

Reuters
September 20, 2008

The Bush administration proposed a $700-billion taxpayer-funded plan on Saturday to buy up toxic mortgage-related securities in an urgent effort to calm financial markets and attack the nation’s housing crisis.

Under the program, the U.S. Treasury Department would buy, or commit to buy, “mortgage-related assets from any financial institution having its headquarters in the United States,” said a copy of the Treasury Department’s draft legislation obtained by Reuters.

The department could hire asset managers to handle the securities, which could include residential or commercial mortgages and related instruments that were originated or issued on or before September 17, 2008, the draft said.

Congressional committees were to be briefed on Saturday on the legislation, which could be considered by the U.S. House of Representatives and Senate as early as next week.

The plan also calls for raising the federal government’s borrowing authority to $11.315 trillion. The debt limit is currently $10.615 trillion.

The government is moving aggressively to soak up billions of dollars of hard-to-sell mortgage-backed securities and related assets that have been choking world capital markets since the bursting of a historic U.S. home price bubble.

 

We Have DAYS To Stop the $700 Billion Stick-Up (and Fascist Power Grab)

George Washington’s Blog
September 21, 2008

Congress hopes to pass the $700 Billion bailout bill by Friday, according to an article in Bloomberg.

In case you haven’t heard, the bill would not only stick up American taxpayers for an additional $700 billion, but would literally give Paulson and the government fascist powers.

Don’t believe me?

Well, as the Bloomberg article notes: “The bill would bar courts from reviewing actions taken under its authority.”

Bloomberg includes the following quotes by people who understand the significance of the bill:

It sounds like Paulson is asking to be a financial dictator, for a limited period of time,” said historian John Steele Gordon . . . .

***

The Bush administration seeks “dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis,” said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. “We are taking a huge leap of faith.”

This power grab is so serious that investigative reporter Larisa Alexandrovna calls it “the final stages of the coup“.

We have days to stop this bill. March on Congress. Educate and motivate everyone around you. Do everything you can to prevent this disaster before it is too late.

 

Krugman: ’Look, this is really scary. This is really bad, This could be 1931’

http://www.youtube.com/watch?v=FKMy8pf9qY8

 

Keiser: US dollar “backed by bananas”

http://www.youtube.com/watch?v=Vhf9KwSUQYw

Recent News:

7 percent of U.S. voters back bailouts
http://www.bizjournals.com/phoenix/stories/2008/09/15/daily63.html

Bush Compares Financial Crisis To 9/11
http://thinkprogress.org/2008/09/19/bush-economy-terrorist/

Nobel Prize Winning Economist: Crisis As Bad As Great Depression Or Worse
http://www.prisonplanet.com/nobel-p..epression-or-worse.html

The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt
http://georgewashington2.blogspot..-pricing-in-genuine.html

Fury at $2.5bn Lehman bonus
http://business.timesonline..nd_finance/article4795072.ece

Almost Armageddon: Markets Were 500 Trades From Meltdown
http://www.nypost.com..armageddon_130110.htm

Bailout plan is vast patronage under cover of martial law
http://www.gata.org/node/6647

Dodd: US financial system near meltdown
http://www.presstv.ir/detail.aspx?id=70011&sectionid=3510203

Reid Says `No One Knows What to Do’ to Solve Crisis
http://www.bloomberg.com/..VWYw&refer=home

U.S. to Sell $100 Billion in Bills to Fund Fed Moves
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ58hpS0fRH8&refer=home

‘Tent Cities’ Spring Up In The US
http://uk.news.yahoo.com/sk..es-spring-up-in-the-us-3fd0ae9.html

Central Banks Offer Extra Funds to Calm Money Markets
http://www.bloomberg.com/apps/news?pid=20601068&sid=aW2z_iiBnF2E&refer=home

U.S. Turning Into U.S.S.R.A
http://www.presstv.ir/detail.aspx?id=69774&sectionid=3510203

Worst Crisis Since ’30s, With No End Yet in Sight
http://finance.yahoo.com/banking-..-No-End-Yet-in-Sight

Federal bailout of U.S. auto industry
http://www.cyclelicio.us/2008/09/federal-bailout-of-us-auto-industry.html

The Fed Runs out of Money
http://ftalphaville.ft.com/blog/2008/09/17/16019/the-feds-run-out-of-money/

No bank is safe in this alarming atmosphere
http://business.theage.com..phere-20080917-4inu.html

Dollar Might Get Crushed
Hundreds of Lehman investors protest in Hong Kong

U.S. Economy Collapse News Archive

 



Taxpayers to Pay Trillions for Fannie and Freddie Bailout

Fannie and Freddie Seized…Cost to Taxpayer: Over $1 Trillion

Contrarain Profits
September 8, 2008

Uncle Sam has finally taken over Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). Yesterday, the Bush administration placed the mortgage giants under a conservatorship, putting billions of dollars of taxpeyers’ money at risk in the process.

The Treasury says it will stump up $200 billion to back the companies in exchange for a 79.9% stake in each. The government is now the biggest player in the US mortgage market.

Don Rich warns that the government’s bailout spells trouble for anyone holding US dollars. A major issue is that the Congressional Budget Office’s estimation of the costs of the bailout is far too conservative…

This from last Thursday’s Daily Reckoning:

A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.

As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.

Between 2001 and 2007, Fannie and Freddie purchased or guaranteed $700 billion of Alt-A and subprime loans. Given the default rates on these loans – and the fact that the price of the housing that is the ultimate security of the loans will, for reasons demonstrated below, fall by at least thirty percent – this alone implies a loss for Fannie and Freddie on the order of $210 billion.

Fannie and Freddie acknowledge already-impaired loans on the balance sheet of $19 billion, which they have used creative accounting to avoid deleting from the shareholder equity account. This means that Fannie and Freddie have a maximum of $64 billion in capital remaining.

Given the inevitable losses on the Alt-A/subprime portion of their portfolio, it must be the case that if the federal government, as it is doing, guarantees Fannie and Freddie’s solvency, the difference between the loss and the capital to be made up by the government (i.e., the taxpayers) must equal, not $25 billion but $147 billion.

That alone would mean that the CBO is blowing smoke with their estimated cost figures, and if you think back to the S&L cost of $160 billion, this is not a surprising result. The real picture is so much worse that it is pretty obvious the CBO is flat out inventing figures just to get the politicians through November.

It doesn’t take a genius to work out how the government is going to get its hands on such money: the Federal printing press…

I don’t know what those people in Washington are taking to sleep at night after all their electorally driven accounting and finance exercises, but I can tell you what they will be doing to keep the government open for business: printing a whole lot of money.

Chairman Bernanke has the discount window open to any collateralization not worth the paper it is written on, so in effect he has the helicopters ready to drop hundred-dollar bills over Wall Street – as he once famously described the ultimate policy instrument of a fiat-money system.

Of course, if he does that, we will have to change his nickname from Helicopter Ben to Hyperinflation Ben, which answers the question of who picks up the tab of bailing out Fannie and Freddie: anyone owning dollars.

Produce a lot of something, and it becomes worth less. And given the losses at Fannie and Freddie, the taxpayer guarantee, and the ongoing initiation of Boomer retirement, only the inflation tax will work to pay for keeping Fannie and Freddie afloat.

Like it or not, we are about to enter interesting times, and it is too bad our supposed professional civil servants at the Congressional Budget Office have failed to tell the emperor the truth: that he is buck-naked bankrupt and getting ready to take a lot of people with him.

P.S Don Rich is an instructor of economics, finance, and political science at Montgomery County Community College in Blue Bell, PA. He also teaches economics, government, and history at Delaware County Community College in Exton, PA. You can leave comments for Don on the mises.org blog.

 

Greenspan: U.S Economy in ’once-in-a-century’ financial crisis

http://www.youtube.com/watch?v=-t6dLePtyXQ

 

U.S. Is “More Communist than China”: Jim Rogers

CNBC
September 15, 2008

The nationalization of Fannie Mae and Freddie Mac shows that the U.S. is “more communist than China right now” but its brand of socialism is meant only for the rich, investor Jim Rogers, CEO of Rogers Holdings, told CNBC Europe on Monday.

“America is more communist than China is right now. You can see that this is welfare of the rich, it is socialism for the rich… it’s just bailing out financial institutions,” Rogers said.

Stock markets jumped after the U.S. government’s decision to launch what could be its biggest federal bailout ever, in a bid to support the housing market and ward off more global financial market turbulence.

But Rogers said in the long term the move spelled trouble.

“This is madness, this is insanity, they have more than doubled the American national debt in one weekend for a bunch of crooks and incompetents. I’m not quite sure why I or anybody else should be paying for this,” Rogers told “Squawk Box Europe.”

Read Full Article Here

 

Soros Compares Mishandling Of Current Crisis To Great Depression

Paul Joseph Watson
Prison Planet
September 17, 2008

Billionaire investor George Soros has slammed US Treasury Secretary Hank Paulson for behaving in the same manner as bankers in the 1930’s and mishandling a financial crisis that threatens a repeat of the Great Depression.

Soros told BBC Newsnight that the world was merely at the beginning of a financial storm and warned, “We mustn’t allow the financial system to collapse as it did in the 1930s.”

Referring to Hank Paulson, the US Treasury Secretary, Soros stated, “The way Paulson is handling the situation is reminiscent of the way the bankers handled it in the 1930s.”

He added: “The financial system has gone overboard and the financial engineering has grown to big, it takes up too big a share in the world’s resources.”

“Now it is shrinking. When it becomes regulated it will be less profitable than the last 25 years.”

Soros, a former member of the Board of Directors of the Council on Foreign Relations, is ranked by Forbes as the 99th richest person in the world with a net worth of around $9 billion.

Ironically, Soros made his name by reaping the dividends of another financial meltdown when he “broke the Bank of England” by short-selling the pound sterling before the currency dropped out of the European Exchange Rate Mechanism in 1992, landing Soros a profit of around $1.1 billion.

In 2006, the highest court in France upheld a conviction that Soros had practiced insider trading when he bought shares in French bank Société Générale after discovering that the bank was on the verge of a takeover.

Soros has repeatedly predicted fiscal armageddon, writing three books about a “superbubble” that is on the verge of collapse.

In response to those accusing him of crying wolf in an effort to panic financial markets and benefit from the fallout, Soros stated, “I have a record of crying wolf…. I did it first in The Alchemy of Finance (in 1987), then in The Crisis of Global Capitalism (in 1998) and now in this book (2008’s The New Paradigm for Financial Markets). So it’s three books predicting disaster. (After) the boy cried wolf three times . . . the wolf really came.”

Respondents to a Daily Mail article about Soros’ comments accused the financier of engaging in wanton hypocrisy.

“I don’t know why on Earth they interview Soros since he has been proven again and again to deliberately spread financial rumour for his own exploitation and gain,” wrote one, “Soros became a multi multi billionaire precisely through manipulating markets like this – if this man says that we are heading for a 1930’s style crash you can guarantee he already has plans to profit from it.”

Recent News:

China paper urges new currency order after “financial tsunami”
http://www.reuters.com/article/ousiv/idUSPEK4365020080917?sp=true

US authorities have now spent $900 billion to prop up the financial system
http://www.swissinfo.ch/eng/..d=9736054&cKey=1221686585000&ty=ti

Central banks pump £100bn into money markets
http://www.telegraph.co.uk/money/m..2008/09/17/cncentral117.xml

Treasury announces debt auctions for Fed
http://ap.google.com/article/ALeqM5jnS9Vm..m4iAD938I1A80

Fed Pumps $70B Into Financial System
http://news.yahoo.com/s/ap/20080916/ap_on_bi_ge/fed_credit_..E44U6Xfx.Fe7GUOQ.D1v24cA

Run On The Bank? Americans Could Lose Their Deposits
http://www.prisonplanet.com/run-on-the-bank-americans-could-lose-their-deposits.html

Merrill Lynch seals future with Bank of America deal
http://business.timesonline.co.uk/tol/bu.._finance/article4755438.ece

Rogers: Dollar To Lose World Reserve Status
http://www.prisonplanet.com/rogers-dollar-to-lose-world-reserve-status.html

Paulson: Congress Has No Authority Here
http://bigpicture.typepad.com/comments/2008/09/paulson-congres.html

Goldman profit plunges 70 pct amid market slump
http://news.yahoo.com/s/nm/20080916/bs_nm/goldmansachs_dc

August home starts seen at lowest level in 17 years
http://www.reuters.com/article/newsOne/idUSN1638353220080917

Russia halts trading after 17.5% share price fall
http://money.cnn.com/news/newsfeeds/articles..ORTUNE5.htm

Dow closed down 450
http://news.yahoo.com/s/ap/20..er=1;_ylt=Al5VvbZImvYKFj5hEtFaLktv24cA

Is Britain Heading For Worst Recession Since 1929?
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/15/bcnrecession115.xml

Washington Mutual Tumbles 30%
http://news.yaho..CZ6k2k2Rd38VKPgv6b.HQA

Now fear stalks British banks
Inflation rises to 4.7% and FTSE plunges ANOTHER 90 points as global markets tumble in wake of Meltdown Monday
Bush Claims Economy Can Weather Storm
Bailouts Will Push U.S. Into Depression

U.S. Economic Collapse News Archive

 



Cities Debate Privatizing Public Infrastructure

Cities Debate Privatizing Public Infrastructure

NY Times
August 29, 2008

Cleaning up road kill and maintaining runways may not sound like cutting-edge investments. But banks and funds with big money seem to think so.

Reeling from more exotic investments that imploded during the credit crisis, Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley and Credit Suisse are among the investors who have amassed an estimated $250 billion war chest — much of it raised in the last two years — to finance a tidal wave of infrastructure projects in the United States and overseas.

Their strategy is gaining steam in the United States as federal, state and local governments previously wary of private funds struggle under mounting deficits that have curbed their ability to improve crumbling roads, bridges and even airports with taxpayer money.

With politicians like Gov. Arnold Schwarzenegger of California warning of a national infrastructure crisis, public resistance to private financing may start to ease.

“Budget gaps are starting to increase the viability of public-private partnerships,” said Norman Y. Mineta, a former secretary of transportation who was recently hired by Credit Suisse as a senior adviser to such deals.

This fall, Midway Airport of Chicago could become the first to pass into the hands of private investors. Just outside the nation’s capital, a $1.9 billion public-private partnership will finance new high-occupancy toll lanes around Washington. This week, Florida gave the green light to six groups that included JPMorgan, Lehman Brothers and the Carlyle Group to bid for a 50- to 75 -year lease on Alligator Alley, a toll road known for sightings of sleeping alligators that stretches 78 miles down I-75 in South Florida.

Until recently, the use of private funds to build and manage large-scale American infrastructure assets was slow to take root. States and towns could raise taxes and user fees or turn to the municipal bond market.

Americans have also been wary of foreign investors, who were among the first to this market, taking over their prized roads and bridges. When Macquarie of Australia and Cintra of Spain, two foreign funds with large portfolios of international investments, snapped up leases to the Chicago Skyway and the Indiana Toll Road, “people said ‘hold it, we don’t want our infrastructure owned by foreigners,’ ” Mr. Mineta said.

And then there is the odd romance between Americans and their roads: they do not want anyone other than the government owning them. The specter of investors reaping huge fees by financing assets like the Pennsylvania Turnpike also touches a raw nerve among taxpayers, who already feel they are paying top dollar for the government to maintain roads and bridges.

And with good reason: Private investors recoup their money by maximizing revenue — either making the infrastructure better to allow for more cars, for example, or by raising tolls. (Concession agreements dictate everything from toll increases to the amount of time dead animals can remain on the road before being cleared.)

Politicians have often supported the civic outcry: in the spring of 2007, James L. Oberstar of Minnesota, chairman of the House Committees on Transportation and Infrastructure, warned that his panel would “work to undo” any public-private partnership deals that failed to protect the public interest.

And labor unions have been quick to point out that investment funds stand to reap handsome fees from the crisis in infrastructure. “Our concern is that some sources of financing see this as a quick opportunity to make money,” Stephen Abrecht, director of the Capital Stewardship Program at the Service Employees International Union, said.

But in a world in which governments view infrastructure as a way to manage growth and raise productivity through the efficient movement of goods and people, an eroding economy has forced politicians to take another look.

“There’s a huge opportunity that the U.S. public sector is in danger of losing,” says Markus J. Pressdee, head of infrastructure investment banking at Credit Suisse. “It thinks there is a boatload of capital and when it is politically convenient it will be able to take advantage of it. But the capital is going into infrastructure assets available today around the world, and not waiting for projects the U.S., the public sector, may sponsor in the future.”

Traditionally, the federal government played a major role in developing the nation’s transportation backbone: Thomas Jefferson built canals and roads in the 1800s, Theodore Roosevelt expanded power generation in the early 1900s. In the 1950s Dwight Eisenhower oversaw the building of the interstate highway system.

But since the early 1990s, the United States has had no comprehensive transportation development, and responsibilities were pushed off to states, municipalities and metropolitan planning organizations. “Look at the physical neglect — crumbling bridges, the issue of energy security, environmental concerns,” said Robert Puentes of the Brookings Institution. “It’s more relevant than ever and we have no vision.”

The American Society of Civil Engineers estimates that the United States needs to invest at least $1.6 trillion over the next five years to maintain and expand its infrastructure. Last year, the Federal Highway Administration deemed 72,000 bridges, or more than 12 percent of the country’s total, “structurally deficient.” But the funds to fix them are shrinking: by the end of this year, the Highway Trust Fund will have a several billion dollar deficit.

“We are facing an infrastructure crisis in this country that threatens our status as an economic superpower, and threatens the health and safety of the people we serve,” New York Mayor Michael R. Bloomberg told Congress this year. In January he joined forces with Mr. Schwarzenegger and Gov. Edward G. Rendell of Pennsylvania to start a nonprofit group to raise awareness about the problem.

Some American pension funds see an investment opportunity. “Our infrastructure is crumbling, from bridges in Minnesota to our airports and freeways,” said Christopher Ailman, the head of the California State Teachers’ Retirement System. His board recently authorized up to about $800 million to invest in infrastructure projects. Nearby, the California Public Employees’ Retirement System, with coffers totaling $234 billion, has earmarked $7 billion for infrastructure investments through 2010. The Washington State Investment Board has allocated 5 percent of its fund to such investments.

Some foreign pension funds that jumped into the game early have already reaped rewards: The $52 billion Ontario Municipal Employee Retirement System saw a 12.4 percent return last year on a $5 billion infrastructure investment pool, above the benchmark 9.9 percent though down from 14 percent in 2006.

“People are creating a new asset class,” said Anne Valentine Andrews, head of portfolio strategy at Morgan Stanley Infrastructure. “You can see and understand the businesses involved — for example, ships come into the port, unload containers, reload containers and leave,” she said. “There’s no black box.”

The prospect of steady returns has drawn high-flying investors like Kohlberg Kravis and Morgan Stanley to the table. “Ten to 20 years from now infrastructure could be larger than real estate,” said Mark Weisdorf, head of infrastructure investments at JPMorgan. In 2006 and 2007, more than $500 billion worth of commercial real estate deals were done.

The pace of recent work is encouraging, says Robert Poole, director of transportation studies at the Reason Foundation, pointing to projects like the high-occupancy toll, or HOT, lanes outside Washington. “The fact that the private sector raised $1.4 billion for the Beltway project shows that even projects like HOT lanes that are considered high risk can be developed and financed privately and that has huge implications for other large metro areas,” he said .

Yet if the flow of money is fast, the return on these investments can be a waiting game. Washington’s HOT lanes project took six years to build after Fluor Enterprises, one of the two private companies financing part of the project, made an unsolicited bid in 2002. The privatization of Chicago’s Midway Airport was part of a pilot program adopted by the Federal Aviation Administration in 1996 to allow five domestic airports to be privatized. Twelve years later only one airport has met that goal — Stewart International Airport in Newburgh, N.Y. — and it was sold back to the Port Authority of New York and New Jersey.

For many politicians, privatization also remains a painful process. Mitch Daniels, the governor of Indiana, faced a severe backlash when he collected $3.8 billion for a 75- year lease of the Indiana Toll Road. A popular bumper sticker in Indiana reads “Keep the toll road, lease Mitch.”

Joe Dear, executive director of the Washington State Investment Board, still wonders how quickly governments will move. “Will all public agencies think it’s worth the extra return private capital will demand?” he asked. “That’s unclear.”

Recent News:

Gold Refiner Runs Out of Gold Krugerrands
http://www.bloomberg.com/apps/news?pid=20601012&sid=acH4WhPh1WJ0&refer=commodities

Greenspan: Don’t use Fed as a ‘magical piggy bank’
http://apnews.myway.com/article/20080905/D930B0EG1.html

Economic downturn worst in ‘60 years’
http://uk.news.yahoo.com/itn/20080830/tuk..-worst-in-60-years-dba1618.html

Brazil, Argentina to eliminate US dollar
http://www.prisonplan…0in%20their%20bilateral%20trade.%20

Food prices rise at the fastest rate on record
http://www.telegraph.co.uk/money/..ney/2008/09/08/bcnfood108.xml

Gold Falls Below $800 Again
http://www.nas..=&link=&headlinereturnpage=http://www.international.nasd

Incomes Of Americans Plunge
http://ap.google.com..sanM66tszKz1zFq0LOG4XvWS7zAD92RV0M00

World’s Richest Got Richer Last Year
http://news.yahoo.com/s/..=AuoqxJH_m6x1CtrZ5.D1n_gXIr0F

Oil nears $100 a barrel ahead of Opec meeting
U.K. House Prices Fall as Sales Drop to Record Low
Greenspan: Don’t use Fed as a ‘magical piggy bank’
China central bank may need government bailout

U.S. Economic Collapse News Archive

 



Buffett Says Fannie Mae, Freddie Mac ’Game Is Over’

Buffett Says Fannie Mae, Freddie Mac ’Game Is Over’

Bloomberg
August 22, 2008

Fannie Mae and Freddie Mac, the two largest mortgage finance companies, “don’t have any net worth,’’ billionaire investor Warren Buffett said.

“The game is over’’ as independent companies said Buffett, the 77-year-old chairman of Berkshire Hathaway Inc., in an interview on CNBC today. “They were able to borrow without any of the normal restraints. They had a blank check from the federal government.’’

Freddie Mac and Fannie Mae touched 20-year lows yesterday on the New York Stock Exchange on speculation a government bailout will leave the stocks worthless. U.S. Treasury Secretary Henry Paulson won approval from Congress last month to pump emergency capital into the companies, which account for more than half of the $12 trillion U.S. mortgage market.

Fannie and Freddie mispriced their products and “kept existing because they had the federal government behind them,’’ Buffett said. Omaha, Nebraska-based Berkshire had been among the largest holders of Freddie until about 2001, when it became apparent the company wasn’t being run well, he said.

Read Full Article Here

 

Jim Cramer Talks About Market Manipulation

Related News:
USDA: US food prices to post biggest rise in 20 years
http://www.reuters.com/article..220080820?sp=true

79 Million Americans Struggle To Pay Med Bills
http://news.yahoo.com/s/hsn/2..AjuAtPXqgtjMugI32IL4GWO9j7AB

Gold surges to a 1-week high of $839
http://africa.reuters.com/business/news/usnBAN222833.html

US Crony Capitalism
http://mparent7777-1.livejournal.com/1375774.html

Recession within year, say experts
http://uk.news.yahoo.com/pres..ay-experts-6323e80.html

Oil shoots to $122 on missile shield row
http://www.thestandard.com.hk/..70614&sid=20295831&con_type=3

Morgan Stanley Says Financial Crisis Will Last: Report
http://www.cnbc.com/id/26252398

Wholesale prices: Highest annual rate in 27 years
http://money.cnn.com/2008/08/19/ne..postversion=2008081910

Wall Street Pulls Back As Financials Fall
Stocks Fall On Inflation Data
Financial Fears, Soaring Inflation Hit Wall Street

U.S. Economic Collapse News Archive

 



Our $100 Trillion National Debt

Our $100 Trillion National Debt

Lew Rockwell
August 7, 2008

The “official” debt of the United States is only around $10 trillion dollars as of August 6, 2008. This is a manageable number; we could pay it off in a few decades if we quit buying luxuries like food and clothing, and take a few other minor economy measures. Unfortunately, the “$10 trillion” number was produced by government accounting, which among other things allows one to ignore Social Security, Medicare, and the new prescription drug benefit. This is like ignoring rent, food, and utilities in your household budget… it will lead to a few bounced checks. Our real debt is about ten times higher.

Who says so? The President of the Dallas Federal Reserve, Richard W. Fisher. In a May speech at the Commonwealth Club of California, he states that the US national debt is close to $100 trillion. You can read his whole speech at the Federal Reserve web site.

The Real Debt

Here is what he said regarding the actual US debt:

“Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.”

Interested readers will notice that the new prescription drug benefit is projected to be more fiscally crushing than all of Social Security.

Mr. Fisher points out that this $99.2 trillion will be a bit of a burden to pay off:

“Let’s say you and I and Bruce Ericson and every U.S. citizen who is alive today decided to fully address this unfunded liability through lump-sum payments from our own pocketbooks, so that all of us and all future generations could be secure in the knowledge that we and they would receive promised benefits in perpetuity. How much would we have to pay if we split the tab? Again, the math is painful. With a total population of 304 million, from infants to the elderly, the per-person payment to the federal treasury would come to $330,000. This comes to $1.3 million per family of four—over 25 times the average household’s income.”

You do have $1.3 million in your pocket, right? What, are you some kind of deadbeat?

Speaking of deadbeats, the “$99.2 trillion” estimate does not include the subprime bailout. So for those who like large round numbers, by the end of 2008 the real National Debt should be large, round, and about $100 trillion.

Read Full Article Here

Recent News:

U.S. Headed Toward Bankruptcy, Says Top Budget Committee Republican
http://www.cnsnews.com/public/content/article.aspx?RsrcID=33574

U.S. crude futures fall below $112
http://www.earthtimes.org/articles/show/225..n-3-below-112.html

Home foreclosure filings up 55 percent in July
http://news.yahoo.com/s/nm/20080814/bs_nm/usa_foreclosures_dc

Subprime Losses Top $500 Billion on Writedowns
http://www.bloomberg.com/apps/ne..7&sid=aSKLfqh2qd9o&refer=worldwide

Foreclosure fallout: Houses go for a $1
http://www.detnews.com/apps/pbcs.dll..13/METRO/808130360

Federal budget deficit nearly tripled in July to $102.8 billion
http://www.usatoday.com/news/w..udget-deficit_N.htm?loc=interstitialskip

How to Conceal Massive Economic Collapse
http://www.congresscheck.com/20..to-conceal-massive-economic-collapse/

Inflation Highest Since 1991
http://www.ft.com/cms/s/0/a8b27794-6a04-11dd-83e8-0000779fd18c.html

Consumer Prices Rise At Double The Expected Rate
http://news.yahoo.com/s/ap/20..rvHZMh.hDDbWuXtRZZaJZJv24cA

1/3 Owe More On Homes Than They’re Worth
http://www.bloomberg.com/apps/n..id=a3uzhDOF9FXI&refer=worldwide

Greenspan sees house price bottom in 2009: report
http://www.reuters.com/article/ousiv/idUSN1350807020080814

GAO: Most U.S. Corporations Don’t Pay Income Taxes
http://www.roguegovernment.com/news.php?id=11377

FDIC Fund Strained By Bank Failures
http://www.bloomberg.com/apps/new..z7p4wU&refer=worldwide

Wachovia to close mortgage offices in 19 states
http://www.bizjournals.com/triad/stories/2008/08/11/daily11.html

UK home repossessions rise by 48%
http://news.bbc.co.uk/2/hi/business/7548877.stm

Europe teeters on the brink of recession
Fed: More Banks Tightening Lending Standards
Who Made 270 million On Collapse of Bear Stearns
EUR/USD Drops Towards $1.4639 Support
RBS slumps to £691m loss
Fannie Mae Posts Massive $2.3B Loss
Greenspan Says Federal Company Would Best Ease Crisis

U.S. Economic Collapse News Archive

 



Bush, McCain & Obama To Visit Bohemian Grove?

Bush, McCain & Obama To Visit Bohemian Grove?

Paul Joseph Watson
Prison Planet
July 11, 2008

Outgoing President George W. Bush and both of his presumptive replacements John McCain and Barack Obama are rumored to be in attendance at this year’s Bohemian Grove gathering, an annual get-together of the global elite staged inside a sprawling forest encampment which kicks off tonight and runs until July 27.

Bohemian Grove is a 136-year-old all-male encampment complete with restaurants, bars, stages and lodges, which caters to around 2,000 members of the global elite along with Californian hoi polloi on a yearly basis in July. The camp is set within a 2,700 acre secluded forest replete with giant redwood trees.

Former attendees include Ronald Reagan and Richard Nixon, who both went on to become President, as well as regulars like Henry Kissinger, Alan Greenspan, David Rockefeller, Colin Powell, as well as George W. Bush and his father.

In 2000 radio host and film maker Alex Jones infiltrated the gathering and caught exclusive video footage of a bizarre mock human sacrifice ritual, known as “the cremation of care”, under a 40 foot stone owl that the members refer to as Molech.

Alex Jones discusses the shocking footage he obtained during his 2000 infiltration of the Grove.

Homosexual orgies are known to be part of the festivities enjoyed by the predominately “Christian conservative” leaders who go there. Former attendee Richard Nixon once referred to the Grove as, “the most faggy goddamned thing you could ever imagine.”

A reader who got a summer job working at the Grove in 2005, Chris Jones, told us that he was regularly propositioned for sex by the old men attending the encampment and asked if he “slept around” and wanted to have some fun.

Jones was later sentenced to three years in jail by California authorities for simply showing a tape of his visit to minors.

However, the media’s attitude to hundreds of powerbrokers attending an event at which the Manhattan Project was known to have been born, while frolicking around dressed up as women pissing up trees and having gay sex, has been sophomoric to say the least.

One such hit piece in the Sacramento News & Review, which ties the Grove as well as public organizations such as the Bilderberg Group and the Trilateral Commission with shape-shifting reptoid conspiracies, is useful for only one piece of information – the claim that Presidential hopeful John McCain may be attending this year’s gathering.

George W. Bush and his father give a lakeside talk at Bohemian Grove in this photo from the Grove’s annual yearbook.

In addition, according to an Arizona Daily Star report about a different subject, President Bush’s schedule for next week has not been released, meaning Bush, a regular attendee with his father to Bohemian Grove in past years, could be set to make a visit at some point to mark the last year of his presidency.

Tellingly, both McCain and Democratic candidate Barack Obama will be in California from Saturday to Tuesday, during which time both candidates are scheduled to speak at the National Council of La Raza, a racist Mexican separatist group that advocates a violent overthrow of the southwestern U.S. states.

Their schedule puts them in the perfect location to enjoy a night at the Grove this weekend.

Two years ago we were able to accurately surmise then British Prime Minister Tony Blair’s visit to the Grove, which coincided with a visit to San Francisco where he met with powerbrokers.

Thus far, there has only been one other mainstream report concerning the event, an article entitled Power brokers due at Bohemian Grove, appearing in the Santa Rosa Press Democrat, a local paper that routinely covers the gathering.

“Critics, who until recent years mounted protests outside its gates, say the gatherings serve as strategy sessions for a New World Order operating outside democratic institutions,” states the article.

“Most critics raise the specter of national policy with global implications coming from behind the gates of an exclusive, closed-door gathering of largely conservative, wealthy white men.”

Bohemian Club Convenes Tonight – Ends July 27, 2008
http://www.pressdemocrat.com/ar..e=Bohemian_Club_convenes_tonight

Bohemian Grove White Wash Piece
http://www.newsreview.com/sacramento/Content?oid=690215

Power brokers due at Bohemian Grove
http://www.pressdemocrat.com..ers_due_at_Boho_Grove

 



The 9/11 Chronicles – Truth Rising (FULL)

The 9/11 Chronicles – Truth Rising (FULL)