noworldsystem.com


Taxpayers To Pay For Mortgage Company Bailout

Top Investor: Fannie/Freddie Bailout Serves “Bunch Of Crooks And Incompetents”
Rogers says move indicates U.S. is “more Communist than China”

Steve Watson
Infowars.net
September 8, 2008

A leading investor has denounced the government seizure of two of the nation’s largest financial companies as “madness” and says the move will only serve to make the markets more volatile and see house prices continue to go down.

In an interview with CNBC Jim Rogers, CEO of Rogers Holdings, described the move by the Treasury to nationalize Fannie Mae and Freddie Mac as “insanity”.

The Treasury has pledged to provide as much as $200 billion to the companies, replace their chief executives and place them under a conservatorship, giving management control to their regulator, the Federal Housing Finance Agency, or FHFA.

“This is madness, this is insanity,” Rogers said, “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.”

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

Rogers and other critics alike are concerned that American taxpayers, already facing the worst housing bust since the 1930s, will now be saddled with billions of dollars in losses from home loans made by the private sector, radically changing the nature of the crisis. Government officials have justified the move by stating that that the cost of doing nothing would be far greater.

“You’re certainly gonna see a huge jump in any financial institutions which owned a lot of Fannie or Freddie… because they don’t have to worry about going bankrupt all of a sudden,” Rogers said.

“Bank stocks around the world are going through the roof, that’s ’cause they’ve all been bailed out. You don’t see the homeowners in Kansas going through the roof ’cause they’re not being bailed out,” he added.

Other investors have criticized the takeover as a “stopgap” and a “band aid” aimed at keeping the companies going into 2009, leaving the next president and Congress to deal with the fallout.

Jim Rogers commented that neither of the presidential candidates has a solution to the crisis.

“This is a big huge mess and neither one of them has a clue what to do next year. It’s going to be a mess.” Rogers said.

Watch the interview with Jim Rogers:

http://www.youtube.com/watch?v=6gZuG-52js0

Taxpayers take on trillions in risk in Fannie, Freddie takeover
http://www.usatoday.com/money/economy/housing/2008-09-07-fannie-freddie-plan_N.htm

Fannie, Freddie rescue binds taxpayers to housing market
http://news.yahoo.com/s//csm/20080909/ts_csm/atakeover

U.S. Seizes Mortgage Giants
http://online.wsj.com/article/SB122079276849707821.html?mod=hpp_us_whats_news

US Government stages world’s biggest bail out
http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/09/07/cnfreddie207.xml

 



Jim Rogers: Avoid Dollar At All Costs

Jim Rogers: Avoid Dollar At All Costs

Bloomberg
June 30, 2008

Investors should avoid the dollar and buy commodities, which is the “best investment’’ for this year, said Jim Rogers, chairman of Rogers Holdings.

Avoid the dollar “at all costs,’’ Rogers said at the opening of an investment club in Shanghai today. “Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds.’’

The U.S. currency has slipped 7.6 percent against the euro and 5.1 percent versus the yen this year as the Federal Reserve cut interest rates to stave off a U.S. economic recession. Oil prices in New York have doubled in the past 12 months, while gold futures jumped 41 percent.

Rogers, who put his New York house on the market in 2006 and now lives in Singapore, said last October he planned to shift all his assets out of the dollar. He predicted last month the currency’s decline would pause in the second quarter because it was overdone.

Read Full Article Here

 



Jim Rogers: Bernanke Should Be Fired

Jim Rogers: Bernanke Should Be Fired

Paul Joseph Watson
Prison Planet
March 20, 2008

http://www.youtube.com/watch?v=ye1u2TgYmXo

Top investor Jim Rogers has publicly called for Federal Reserve chaiman Ben Barnanke to resign, blaming him for destroying the dollar and bailing out his friends on Wall Street at the cost of the American taxpayer, in the latest savage attack on the Fed amidst the latest round of economic turmoil.

“I think the Fed should be abolished, we’d all be better off without the Fed….in my view their day is done,” said Rogers during an appearance on CNBC yesterday.

Rogers pointed out that concerns over a vacuum of power were trite considering America had successfully lived without a central bank before and the first two central banks had failed.

Asked if Bernanke should resign, Rogers responded, “He should be fired, we can’t fire him unfortunately under the terms of his contract he’s there for another 12 years….I think eventually things are gonna get so bad we’re gonna get rid of him one way or the other he’ll resign.”

Rogers said that the Federal Reserve’s mandate was to protect the dollar but that the Fed was “letting the dollar collapse” and “filling the Federal Reserve’s balance sheet with a bunch of garbage.”

Despite the fact that Rogers admitted he was still making money due to his heavy investment in commodities, he said that he didn’t approve of what the Fed was doing.

Rogers has been on a crusade over the past few weeks, slamming the Federal Reserve with every opportunity he gets.

On Tuesday he appeared on Bloomberg News and told viewers that the Fed had “given up” on the dollar, advising people to dump the greenback and buy gold as well as currencies like the Chinese Renminbi and the Swiss Franc.

http://www.youtube.com/watch?v=wXUU_lyb0Lc

He also slammed Bernanke for bailing out his banking friends on Wall Street so they could keep their bonuses at the expense of American taxpayers and the value of the dollar.

During a CNBC appearance last week, Rogers called for the Fed to abolished outright after Bernanke dumped $280 billion in liquidity into the market, a move that put 400 points on the Dow but contributed to the dollar hitting new lows and inflation continuing to skyrocket. Rogers said the action would only cause “a worse recession in the end”.

http://video.google.com/videoplay?docid=-6046520409389956642&hl=en

Rogers: Fed Has “Given Up” On The Dollar
http://prisonplanet.com/articles/march2008/031908_given_up.htm

 



Gold Hits Record $1,009, Oil $111, Euro $1.56

Gold hits new record at $1,009

Bloomberg
March 14, 2008

Gold surged to a record $1,009 an ounce in New York as the Bear Stearns Cos. bailout and a plunging dollar increased demand for the precious metal. Silver also gained.

Bear Stearns got emergency funding from JPMorgan Chase & Co. and the New York Federal Reserve. The securities firm said its cash position had “significantly deteriorated.” The dollar fell to a record against the euro and a 12-year low against the yen. Gold has jumped 19 percent this year, while the Standard & Poor’s 500 Index fell 13 percent.

“Gold’s assault on $1,000 is happening for a good reason,” said James Turk, founder of GoldMoney.com, which had $337 million in gold and silver in storage for investors at the end of February. “Gold is not only an inflation hedge, it’s a catastrophe hedge. Gold is becoming increasingly important as the credit crunch continues to spiral out of control.”

Gold futures for April delivery rose $5.70, or 0.6 percent, to $999.50 an ounce on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract at 10:45 a.m., topping yesterday’s record of $1,001.50. The metal has tripled in the past five years.

Silver futures for May delivery climbed 23.5 cents, or 1.2 percent, to $20.655 an ounce. The price has gained 38 percent this year.

“Gold at $1,000 is a clear sign of a lack of confidence in the dollar and the Fed’s handling of monetary affairs,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland.

Read Full Article Here

 

Oil Hits Record $111, Euro Reaches $1.56

AFP
March 14, 2008

The dollar struck a fresh all-time low against the euro Friday as gold prices traded close to record highs a day after topping 1,000 dollars for the first time on US economic woes.

Oil prices fell on profit-taking after striking an historic peak of 111 dollars per barrel Thursday.

The European single currency reached a record high of 1.5651 dollars in Asian trade Friday, prompting the EU presidency to voice deep concern.

In later European trading the euro stood at 1.5566 dollars, down from 1.5624 late on Thursday in New York.

Read Full Article Here

 

Jim Rogers: Abolish The Federal Reserve

http://video.google.com/videoplay?docid=-6046520409389956642&hl=en

Recent News:

Wall Street Fears Big U.S. Bank In Trouble
http://business.timesonline.co.uk/tol/business/economics/article3542775.eceNew dollar low is ‘not good tidings’: Bush
http://rawstory.com/news/afp/New_dollar_low_is_not_good_tidings__03122008.html

White House Urges Consumers To Spend
http://rawstory.com/news/afp/White_House_urges_US_consumers_to_s_03132008.html

Macy’s Grocery Store: Wheat Shortage is Here
http://www.nationalexpositor.com/News/1083.html

New Purple 5 Dollar Bill Goes Into Circulation
http://www.latimes.com/news/nationwo..a-na-fivebill14mar14,1,186638.story

Subprime writedowns could hit $285 billion: S&P; Stocks Fall
http://www.reuters.com/article/gc06/idUSWNA706920080313

Feb. foreclosures up 60 percent over year before
http://www.msnbc.msn.com/id/23601813/

Going, going, gone: a rising auction of scary scenarios
http://www.ft.com/cms/s/0/0e63a..00779fd2ac.html?nclick_check=1

Foreclosure Crisis Has Ripple Effect
http://www.usatoday.com/news/nation/2008-03-11-foreclosures_N.htm

Palladium and Platinum Rise
http://www.bloomberg.com/apps/news?..Uaj5A&refer=commodities

Family forced into bankruptcy by government over unpaid taxes of $1.50
http://www.dailymail.co.uk/pages/li..article_id=528920&in_page_id=1770

Goldcorp Sees Higher Gold Prices
Dollar falls below 100 yen; Euro hits new record high above 1.56 usd
Expert Fears Dollar Crash As Greenback Hits New Lows
Corporate Media Snowjobs Dollar Crisis
Ron Paul: Fed Injection A Disaster
Ron Paul: A Recession is Tough Medicine
Ron Paul Warns Of Economic Worldwide Collapse
$1,000 Gold Has Officially Arrived: A Warning From Ron Paul
Oil price hits new high of $110 a barrel with no sign of a fall
Gas Prices Rise to New National Record
Goldman Sachs: Oil May Reach $200
OPEC: Oil Spike To Last Through 2008
Fed pumps up liquidity in funding markets to ease credit crunch
Dollar Declines, Fed May Cut Rates 75 Points
Faber: Bernanke Will Destroy Dollar
Press Secretary Perino: I’ll Be Fired If I Talk About the Dollar

U.S. Economic Collapse News Archive

 



Goldman Sachs sees recession in 2008


Goldman Sachs sees recession in 2008

Reuters
January 9, 2008

Goldman Sachs on Wednesday said it expects the U.S. economy to drop into recession this year, prompting the Federal Reserve to slash benchmark lending rates to 2.5 percent by the third quarter.

In a note to clients, Goldman said real gross domestic product would contract by 1 percent on an annualized basis in both the second and third quarters. For all of 2008, the investment bank said GDP would rise by 0.8 percent.

The unemployment rate will rise to 6.5 percent in 2009 from the current 5 percent, it said.

The weakening economy will force the Fed to lower policy rates by an additional 1.75 percentage points from the current 4.25 percent. Starting in September, the Fed cut rates at the last three meetings of the Federal Open Market Committee, reducing the target rate on loans between banks by 1 percentage point from 5.25 percent.

Read Full Article Here

 

Merrill Lynch: Recession “Has Arrived”

BBC
January 8, 2008

The feared recession in the US economy has already arrived, according to a report from Merrill Lynch.

It said that Friday’s employment report, which sent shares tumbling worldwide, confirmed that the US is in the first month of a recession.

Its view is controversial, with banks such as Lehman Brothers disagreeing.

An official ruling on whether the US is in recession is made by the National Bureau of Economic Research, but this decision may not come for two years.

The NBER defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months”.

It bases its assessment on final figures on employment, personal income, industrial production and sales activity in the manufacturing and retail sectors.

Merrill Lynch said that the figures showing the jobless rate hitting 5% in December were the final piece in that puzzle.

“According to our analysis, this isn’t even a forecast any more but is a present day reality,” the report said.

It added that the current consensus view on Wall Street that there is a good chance of avoiding a recession is “in denial”.

It also objected to the use of euphemistic terms for the state of the economy.

“To say that the backdrop is ‘recession like’ is akin to an obstetrician telling a woman that she is ‘sort of pregnant’,” the report said.

 

National Bureau of Economic Research: “Odds Of Recession More Than 50%”

Bloomberg
January 7, 2008

Harvard University economist Martin Feldstein, head of the group that dates U.S. economic cycles, said the odds of a recession have risen to more than 50 percent after a report showing unemployment jumped in December.

“We are now talking about more likely than not,” Feldstein, president of the National Bureau of Economic Research, said in an interview in New Orleans two days ago. “I have been saying about 50 percent. This now pushes it up a bit above that.”

The jobless rate rose to 5 percent in December, the highest in two years, from 4.7 percent in November, a government report showed last week. Payrolls rose by 18,000, the least since August 2003.

The U.S. economic expansion is cooling after a third- quarter surge as the housing slump enters its third year and consumer spending slows. Former Federal Reserve Chairman Alan Greenspan and ex-Treasury Secretary Lawrence Summers are among those raising the prospect of a recession.

The increase in unemployment will hurt consumer confidence, Feldstein said in the interview. He was in New Orleans to speak at an economics panel discussion on productivity that was part of the annual meeting of the Allied Social Science Associations.

“Consumers, with essentially no growth in jobs in December, are going to be more nervous about the future,” said Feldstein, 68. “They are going to be a little more reluctant to spend, and that is going to put a further drag on growth in 2008.”

Read Full Article Here

Jim Rogers Says U.S. to Have Worst Recession `in a While’
http://www.bloomberg.com/apps/..sid=ayq29JCsf65c&refer=home

 



Jim Rogers Urges People To Sell Dollars

Jim Rogers Urges People To Sell Dollars

Bloomberg
November 15, 2007

Nov. 15 (Bloomberg) — Investor Jim Rogers urged people to get out of the dollar and says he expects to be rid of all his U.S. currency assets by summer next year.

“If you have dollars, I urge you to get out,” Rogers said in an interview from Singapore. He is chairman of New York-based Rogers Holdings, formerly known as Beeland Interests Inc. “That’s not a currency to own.”

The dollar fell 9.5 percent this year against a basket of six major currencies as a housing slump slowed the economy and losses stemming from subprime mortgage defaults spread among U.S. banks. Rogers, who said last month he was shifting out of all his dollar assets, plans to buy commodities, Japan’s yen, the Chinese yuan and the Swiss franc.

Interest rate futures traded on the Chicago Board of Trade show a 72 percent chance that the central bank will lower its target rate for overnight loans between banks to 4.25 percent on Dec. 11, its third reduction this year.

Rogers, who predicted the start of the global commodities rally in 1999, criticized Federal Reserve Chairman Ben S. Bernanke for comments on the currency before a congressional committee on Nov. 8.

“He is a total fool,” Rogers said. “He said Americans who buy only American goods are not affected if the value of the U.S. dollar goes down. I was terrified.”

Bernanke said the only effect of a weaker dollar on a typical American with their wealth in dollars, buying consumer goods in dollars, would be “their buying powers, it makes imported goods more expensive.”

Rogers said that’s not right.

“If you only buy American products and the dollar goes down, the price of oil goes up, copper goes up, wheat goes up,” he said. “That affects you. He doesn’t understand the economy as far as I can see.”


Pound hits fresh 4-yr low vs euro after weak data

Reuters
November 14, 2007

Sterling fell to a new four-year low against the euro on Thursday, while British shares timmed losses after UK retail sales data showed an unexpected monthly fall in October, boosting the case for Bank of England rate cuts.

Retail sales fell 0.1 percent on the month versus expectations for a flat reading.

“It suggests that the economy is slowing down in the fourth quarter and it’s looking like there is going to be a rate cut in February which will mean cable (sterling/dollar) will go lower,” said Geoff Kendrick, currency strategist at Westpac.

Sterling fell to a session low of $2.0472, down about half a cent from pre-data levels .

The euro rose as high as 71.52 pence, highest since July 2003 .

The FTSE 100 .FTSE trimmed losses, down 0.46 percent after the UK retail sales data.

Related News:

Gulf states’ dollar peg comes under threat
http://www.ft.com/cms/s/0/14499…9fd2ac.html

Economists in poll expect credit turmoil to continue: WSJ
http://investing.reuters.co.uk/news/articleinves….EY-DC.XML

UK: Fastest rise in food prices for 14 years
http://www.telegraph.co.uk/news/main.jht…s/2007/11/13/ncosts113.xml

Forex – Pound sinks as Oct retail sales show flagging sentiment
http://investing.reuters.co.uk/news/ar….EY-DC.XML

Bank’s grim warning over UK economy
http://www.guardian.co.uk/business/2007/nov/15/economy1

Consumer inflation posts increase
http://biz.yahoo.com/ap/071115/economy.html

Inflation, gold: Back to the 1970s?
http://www.canada.com/nationalpost/colu…dc6fb7b9ca1&p=2

Goldman Sachs bets credit crisis will worsen
http://news.independent.co.uk/business/news/article3157810.ece

British taxpayers face paying £730 EACH to cover Northern Rock in plans to ‘nationalise’ bank
http://www.thisislondon.co.uk/news/article-2342105….nk/article.do

Carnage on Wall Street as loans go bad
http://news.bbc.co.uk/2/hi/business/7086909.stm

Treasury Market Inflation Anxiety Renewed
http://www.bloomberg.com/apps/news?pid…er=home

‘Sub-prime black hole is getting scarier’
http://news.independent.co.uk/business/news/article3155150.ece

California, Ohio, Florida Cities Lead U.S. Foreclosure Filings
http://mparent7777-2.blogspot.com/200….-lead-us.html

US dollar will get stronger: Bush
http://news.yahoo.com/s/afp/2007…113234035

Dollar to stay anchor of China’s reserves: Chinese official
http://afp.google.com/article/ALeqM5ibhPYyc-ifNr4ni18X_R6ekczbuw

When I start seeing Jay-Z flashing euros instead of the dollar, I know our economy is in trouble
http://noworldsystem.com/2007/11/15/is-jay-z-signaling-a-recession/

Talk of Worst Recession Since the 1930s
http://www.nysun.com/article/66268

Recession fears grow as inventories swell
Recession fears grow as inventories swellOECD Says the Full Effect of the Sub-Prime Mess is Still in Front of Us
MBIA, Ambac Downgrades May Cost Market $200 Billion
Paulson Becomes Boxed-in by `Strong’ Dollar Chant
88% Erosion and Purchasing Power
Bear Stearns Cuts Subprime Assets, Limits Writedown
Orlando Foreclosure Filings Up 184%
Judge rules against the banks!?
Crude Oil = $98; Gold = $845
Wall Street Sees Worst Weekly Point Loss Since 9/11
Gold bounces above $800 after 1 percent drop
It’s the FIRE Economy, stupid
Dollar Crisis: None dare call it ‘conspiracy’
Subprime Losses May Reach $300/400 Bil
Sterling falls as risk aversion leads to carry unwind
Time for the White House to Rescue the Dollar?
Bets against the dollar unlikely to slow this quarter
Even a weakened dollar still rules
World stocks hit 8-week low
With the dollar’s fall, intervention idea gains force
Currency Controls Return as Central Banks Fight Gains
The Risk of a Systemic Shock to the System is “Alarmingly High” – Morgan Stanley
Wall Street’s money machine breaks down
Oil Price Rise Causes Global Shift in Wealth
Global credit crisis intensifies
Ron Paul to Bernanke: How can we solve inflation with more inflation?

U.S. Economic Collapse News Archive

 



Ron Paul Gaining Ground In New Hampshire

Ron Paul Gaining Ground In New Hampshire
New poll proves mainstream dismissal of congressman’s presidential campaign is foolhardy

Steve Watson
Infowars.net
October 29, 2007

A newly released presidential primary preference poll indicates that Ron Paul is gaining significant ground in New Hampshire and dispels the mainstream media myth that the Congressman is not amongst the top tier candidates.

The poll, conducted by St. Anselm College’s Institute of Politics, puts Ron Paul 4th behind Giuliani, McCain and Romney with 7.4 percent. It places Fred Thompson, touted as second favourite to take the GOP nomination, in 6th place.

The poll also shows that 40 percent describe themselves as “independents” who may vote Republican, and 19 percent who will, are still undecided. Ron Paul’s campaign staff are encouraged by these figures as they show that none of the other big name candidates have grasped the imagination of voters, leaving the door very much open for the Congressman.

Paul’s campaign office is about to embark on a major media blitz in New Hampshire, readying phone banks to call potential Ron Paul supporters throughout the state and major TV ads, such as the one below.

http://www.youtube.com/watch?v=ay4vXZWxeuU

Congressman Paul, who filed his declaration of candidacy to run in the New Hampshire presidential primary at the State house in Concord last week, is also scheduled to make an appearance on the Tonight Show with Jay Leno tomorrow night.

Recent poll results from public opinion service Rasmussen Reports also indicate that support for Ron Paul could be much higher nationwide, placing him above Giuliani in some instances.

“By all accounts, Dr. Paul’s support is rising steadily,” said Paul campaign chairman Kent Snyder. “Americans are ready for a change and his unifying message of freedom, peace and prosperity is bringing more people together every day.”

 

Ron Paul Interview on Economics

http://www.youtube.com/watch?v=Kz689NHcAKo

http://www.youtube.com/watch?v=L_B2STQuUXA

http://www.youtube.com/watch?v=52_SOeDVIQk

Jim Rogers Endorses Ron Paul
http://dailypaul.com/node/4817

Is San Francisco Ron Paul territory?
http://www.latimes.com/new…?coll=la-home-center