Rep. Steve Scalise says vote sends a signal to the president that lawmakers are tired of his "shadow government."
By Andrew Restuccia - 02/17/11 07:01 PM ET
The House GOP approved an amendment to a government-spending bill that would block funding for the Obama administration’s so-called policy "czars,” appointed advisers to the president that have been much-criticized by Republicans.
The vote was 249-171.
The amendment, offered by Rep. Steve Scalise (R-La.), specifically targets Obama’s “climate czar” by blocking funding for the assistant to the president for energy and climate change, the position's official title. The amendment would block funding for the 'czars' through the end of the fiscal year, when the spending bill would run out. The underlying bill also includes a provision to block funding for the position.
"I think this sends a strong signal to the president that we are tired of him running this shadow government, where they have got these czars that are literally circumventing the accountability and scrutiny that goes with Senate confirmation," Scalise said after the vote.
Carol Browner, who currently holds the position, announced last month that she will resign, leaving the future of the office in doubt.
Scalise said the measure blocking the czars also makes good fiscal sense.
"We are going to save millions of taxpayer dollars, but we are also going to send him a signal that he is going to have to hold his administration accountable to the same transparency that he promised, but has unfortunately failed to deliver," he said.
Republicans railed against Browner and Obama’s other policy advisers, arguing they played too great a role in the president’s policy decisions for officials that were appointed rather than confirmed by Congress.
The amendment would also prohibit funding for the director of the White House Office of Health Reform; the State Department’s special envoy for climate change; the special adviser for green jobs, enterprise and innovation at the Council on Environmental Quality; the senior adviser to the secretary of the treasury assigned to the Presidential Task Force on the Auto Industry and senior counselor for manufacturing policy; the White House director of urban affairs; the special envoy to oversee the closure of Guantanamo Bay; the special master for TARP executive compensation at the Department of the Treasury; and the associate general counsel and chief diversity officer at the Federal Communications Commission.
Friday, February 18, 2011
Hillary Clinton donors indicted
Hillary Clinton donors indicted
By Jordy Yager - 02/16/11 08:32 PM ET
A federal grand jury indicted two Virginia men on Wednesday for allegedly trying to illegally reimburse donors who gave to Hillary Rodham Clinton’s Senate and presidential campaigns.
The Department of Justice (DOJ) has accused the two men, William Danielczyk and Eugene Biagi, of paying back $186,600 in contributions to the Senate and presidential campaign committees of a candidate for federal office, and obstructing the Federal Election Commission (FEC) and the FBI.
Though the DOJ does not name the candidate that the men donated to, according to campaign finance records Danielczyk and Biagi donated to Clinton’s 2006 Senate bid and her 2008 presidential campaign.
The two men are each charged with one count of conspiracy, two counts of reimbursing contributions, one count of using corporate funds to reimburse contributions, and one count of obstructing justice.
“As part of the scheme, Danielczyk and Biagi allegedly created and distributed back-dated letters to 15 contributors that falsely characterized reimbursements for contributions as ‘consulting fees,’” according to the DOJ.
According to court documents, April Spittle helped Danielczyk and Biagi, and earlier this month pleaded guilty to one count of making reimbursed contributions to the 2008 presidential campaign.
The defendants are expected to make initial court appearances Friday in U.S. District Court in Alexandria.
The maximum penalty for the conspiracy charge is five years in prison, while the charges of reimbursing contributions and contributing corporate funds each carry a maximum penalty of 10 years in prison. Obstruction of justice is punishable by up to 20 years in prison.
By Jordy Yager - 02/16/11 08:32 PM ET
A federal grand jury indicted two Virginia men on Wednesday for allegedly trying to illegally reimburse donors who gave to Hillary Rodham Clinton’s Senate and presidential campaigns.
The Department of Justice (DOJ) has accused the two men, William Danielczyk and Eugene Biagi, of paying back $186,600 in contributions to the Senate and presidential campaign committees of a candidate for federal office, and obstructing the Federal Election Commission (FEC) and the FBI.
Though the DOJ does not name the candidate that the men donated to, according to campaign finance records Danielczyk and Biagi donated to Clinton’s 2006 Senate bid and her 2008 presidential campaign.
The two men are each charged with one count of conspiracy, two counts of reimbursing contributions, one count of using corporate funds to reimburse contributions, and one count of obstructing justice.
“As part of the scheme, Danielczyk and Biagi allegedly created and distributed back-dated letters to 15 contributors that falsely characterized reimbursements for contributions as ‘consulting fees,’” according to the DOJ.
According to court documents, April Spittle helped Danielczyk and Biagi, and earlier this month pleaded guilty to one count of making reimbursed contributions to the 2008 presidential campaign.
The defendants are expected to make initial court appearances Friday in U.S. District Court in Alexandria.
The maximum penalty for the conspiracy charge is five years in prison, while the charges of reimbursing contributions and contributing corporate funds each carry a maximum penalty of 10 years in prison. Obstruction of justice is punishable by up to 20 years in prison.
A reasonable scenario of Collapse of the Global Financial System for a new book by Damon Vickers a must read
From the Author: A Fictional Timeline of Events for the Crash of the U.S. Dollar
Author Damon Vickers
10 a.m. EST Wednesday. The U.S. government is having its regular auction of U.S. Treasury notes. Here we go again begging to the world with our tin cup. Only this time the world says, “No. We aren’t going to buy any more U.S. I.O.U.s.”
3 p.m. EST Sunday. When the Asian markets open, we see a meltdown. The Asian markets are down 5 percent, then 6 percent then 7 percent in an all out free-fall. It touches off an avalanche of selling and markets around the world go into independent free-falls.
3 p.m. EST Sunday. Global currencies start to slip and are also in free fall. Gold prices rise by $300 to $400 dollars an ounce. Silver and palladium are also up as global investors convert, to put everything they have into precious metals.
9:30 a.m. EST Monday. The New York Stock Exchange (NYSE) opens and within minutes circuit breakers around the world pop under a deluge of market orders.
9:50 a.m. EST Monday. The NYSE is advised of the liquidity problems and the market shuts down. Markets around the world react with volatility in a strong down trend. Everyone starts selling bonds to raise capital, but there are few buyers. Prices plunge; yields rise.
10:10 a.m. EST Monday. Markets around the world react to the close of the NYSE with volatility in a strong down trend.
10:45 a.m. EST Monday. Several countries in Europe announce they have raised interest rates by 3 or 4 percent to make their own bonds attractive to buyers. In response, other global markets become very nervous and even less stable.
9:30 a.m. EST Tuesday. The NYSE is unable to open due to the quantity of sell orders jamming the systems.
9:45 a.m. EST Tuesday. The Federal Reserve calls an emergency meeting. The United States needs liquidity and must compete for it.
10:45 a.m. EST Tuesday. The Federal Reserve announces a hike in interest rates.
11:15 a.m. EST Tuesday. Global markets don’t like the hike in U.S. interest rates, but respond by seeking some type of footing for the short term.
11:30 a.m. EST Tuesday. The NYSE finally manages to open two hours after the opening bell. Global markets have gapped down 6 to 7 percent from Friday’s close.
12:05 p.m. EST Tuesday. Traders believe the worst is behind them.
Tuesday afternoon through Friday morning. The dollar rallies. Markets find new levels. Traders around the world are walking on eggshells and having a hard time sleeping. Global currencies are still in free fall. Gold prices continue to rise along with other precious metals as more buyers come in.
2 p.m. EST Friday. In spite of the hike in interest rates, the U.S. dollar continues to fall as global confidence continues to erode.
8 a.m. EST Saturday. The Fed reconvenes.
3 p.m. EST Sunday. The Fed announces a second interest rate hike in as many weeks. At Asian open China gets first crack at the higher yield bonds.
3:01 p.m. EST Sunday. Currency markets instantly respond as bank interest rates in Western Europe are hiked simultaneously with the U.S., but there are no buyers.
9:30 a.m. EST Monday. At the NYSE bell all hell is unleashed. Traders around the world become net sellers of equities, bonds, and western currencies. Everyone wants out at the same time. The world markets are thrown into chaos. Panic and confusion sweep the globe and all markets are in free fall.
9:42 a.m. EST Monday. Everything is jammed as the volume of selling off all distributed equities in all the global markets becomes overwhelming. The markets around the world seize up. Trading ceases.
10:11 a.m. EST Monday. On the NYSE floor, someone turns up the volume on CNN and people slowly gather around the screen to watch videos of bodies falling out of exchange headquarters in Tokyo, Singapore, Hong Kong, London, Frankfurt, Paris and Bucharest. Someone turns the sound off, but the videos keep playing.
10:28 a.m. EST Monday. On the NYSE floor, traders start to pick up their tickets. Every hand is shaking. Throughout the day shocked traders wander out of the building. Some find their way home. Others are never heard from again. Others begin to obsess about how to recoup their losses if and when the market reopens.
12:01 a.m. EST Tuesday. The IMF convenes with G20 leaders to discuss a solution to the paralyzed markets. They realize the only way to unfreeze the markets is to do a total restructure of all westernized debt in one fell swoop. This will require a complete realignment of currencies as it will likely include massive work-outs by debtor nations. The work outs will mandate that all countries submit to terms set out by a new global authority that is quickly being formed.
6 a.m. EST Tuesday. A spokeswoman for the IMF/G20 coalition holds a news conference before the New York Exchange opens. The conference is simulcast around the world in multiple languages. She assures viewers that everything is under control and that the IMF/G20 coalition will be overseeing an economic reset that will transpire in an orderly manner. She encourages people to remain calm, adding that while the temporary halt in exchange trading is awkward, everybody’s money is safe and there is no need to panic.
3:15 p.m. EST Tuesday. Around the country, panic spreads. Bank runs are reported. Looting spreads from banks and guns shops to grocery stores and supply stores. Riot squads are deployed. The National Guard is called in. Police start recording fatalities. People start firing back at the police.
Hourly updates are broadcast from the White House. The President holds a daily live news conference for selected media representatives, but takes no questions.
6:09 a.m. EST Tuesday. The IMF/G20 coalition holds a news conference that is simultaneously webcast in multiple languages. As a panel, the IMF/G20 coalition members outline the plan to restructure the global economy. They announce the establishment of a new Global Unification Exchange System (GUES) and mandate that all nations cease printing national currencies. It’s a global town hall.
11:10 a.m. EST Wednesday. The newly formed grassroots Coalition for Political Reform/USA (CPR/USA) launches a coordinated internet campaign to demand changes in America political system, specifically the elimination the Electoral College and the creation of a secure online voting system which will ensure one person, one vote and be run by volunteers across the nation.
Pretty scary stuff. Obviously, this is all conjecture. Still, it contains some possibilities that need to be considered as the U.S. dollar continues to weaken.
Author Damon Vickers
10 a.m. EST Wednesday. The U.S. government is having its regular auction of U.S. Treasury notes. Here we go again begging to the world with our tin cup. Only this time the world says, “No. We aren’t going to buy any more U.S. I.O.U.s.”
3 p.m. EST Sunday. When the Asian markets open, we see a meltdown. The Asian markets are down 5 percent, then 6 percent then 7 percent in an all out free-fall. It touches off an avalanche of selling and markets around the world go into independent free-falls.
3 p.m. EST Sunday. Global currencies start to slip and are also in free fall. Gold prices rise by $300 to $400 dollars an ounce. Silver and palladium are also up as global investors convert, to put everything they have into precious metals.
9:30 a.m. EST Monday. The New York Stock Exchange (NYSE) opens and within minutes circuit breakers around the world pop under a deluge of market orders.
9:50 a.m. EST Monday. The NYSE is advised of the liquidity problems and the market shuts down. Markets around the world react with volatility in a strong down trend. Everyone starts selling bonds to raise capital, but there are few buyers. Prices plunge; yields rise.
10:10 a.m. EST Monday. Markets around the world react to the close of the NYSE with volatility in a strong down trend.
10:45 a.m. EST Monday. Several countries in Europe announce they have raised interest rates by 3 or 4 percent to make their own bonds attractive to buyers. In response, other global markets become very nervous and even less stable.
9:30 a.m. EST Tuesday. The NYSE is unable to open due to the quantity of sell orders jamming the systems.
9:45 a.m. EST Tuesday. The Federal Reserve calls an emergency meeting. The United States needs liquidity and must compete for it.
10:45 a.m. EST Tuesday. The Federal Reserve announces a hike in interest rates.
11:15 a.m. EST Tuesday. Global markets don’t like the hike in U.S. interest rates, but respond by seeking some type of footing for the short term.
11:30 a.m. EST Tuesday. The NYSE finally manages to open two hours after the opening bell. Global markets have gapped down 6 to 7 percent from Friday’s close.
12:05 p.m. EST Tuesday. Traders believe the worst is behind them.
Tuesday afternoon through Friday morning. The dollar rallies. Markets find new levels. Traders around the world are walking on eggshells and having a hard time sleeping. Global currencies are still in free fall. Gold prices continue to rise along with other precious metals as more buyers come in.
2 p.m. EST Friday. In spite of the hike in interest rates, the U.S. dollar continues to fall as global confidence continues to erode.
8 a.m. EST Saturday. The Fed reconvenes.
3 p.m. EST Sunday. The Fed announces a second interest rate hike in as many weeks. At Asian open China gets first crack at the higher yield bonds.
3:01 p.m. EST Sunday. Currency markets instantly respond as bank interest rates in Western Europe are hiked simultaneously with the U.S., but there are no buyers.
9:30 a.m. EST Monday. At the NYSE bell all hell is unleashed. Traders around the world become net sellers of equities, bonds, and western currencies. Everyone wants out at the same time. The world markets are thrown into chaos. Panic and confusion sweep the globe and all markets are in free fall.
9:42 a.m. EST Monday. Everything is jammed as the volume of selling off all distributed equities in all the global markets becomes overwhelming. The markets around the world seize up. Trading ceases.
10:11 a.m. EST Monday. On the NYSE floor, someone turns up the volume on CNN and people slowly gather around the screen to watch videos of bodies falling out of exchange headquarters in Tokyo, Singapore, Hong Kong, London, Frankfurt, Paris and Bucharest. Someone turns the sound off, but the videos keep playing.
10:28 a.m. EST Monday. On the NYSE floor, traders start to pick up their tickets. Every hand is shaking. Throughout the day shocked traders wander out of the building. Some find their way home. Others are never heard from again. Others begin to obsess about how to recoup their losses if and when the market reopens.
12:01 a.m. EST Tuesday. The IMF convenes with G20 leaders to discuss a solution to the paralyzed markets. They realize the only way to unfreeze the markets is to do a total restructure of all westernized debt in one fell swoop. This will require a complete realignment of currencies as it will likely include massive work-outs by debtor nations. The work outs will mandate that all countries submit to terms set out by a new global authority that is quickly being formed.
6 a.m. EST Tuesday. A spokeswoman for the IMF/G20 coalition holds a news conference before the New York Exchange opens. The conference is simulcast around the world in multiple languages. She assures viewers that everything is under control and that the IMF/G20 coalition will be overseeing an economic reset that will transpire in an orderly manner. She encourages people to remain calm, adding that while the temporary halt in exchange trading is awkward, everybody’s money is safe and there is no need to panic.
3:15 p.m. EST Tuesday. Around the country, panic spreads. Bank runs are reported. Looting spreads from banks and guns shops to grocery stores and supply stores. Riot squads are deployed. The National Guard is called in. Police start recording fatalities. People start firing back at the police.
Hourly updates are broadcast from the White House. The President holds a daily live news conference for selected media representatives, but takes no questions.
6:09 a.m. EST Tuesday. The IMF/G20 coalition holds a news conference that is simultaneously webcast in multiple languages. As a panel, the IMF/G20 coalition members outline the plan to restructure the global economy. They announce the establishment of a new Global Unification Exchange System (GUES) and mandate that all nations cease printing national currencies. It’s a global town hall.
11:10 a.m. EST Wednesday. The newly formed grassroots Coalition for Political Reform/USA (CPR/USA) launches a coordinated internet campaign to demand changes in America political system, specifically the elimination the Electoral College and the creation of a secure online voting system which will ensure one person, one vote and be run by volunteers across the nation.
Pretty scary stuff. Obviously, this is all conjecture. Still, it contains some possibilities that need to be considered as the U.S. dollar continues to weaken.
Acute Liquidity Crisis In Europe Confirmed As Borrowing Surge On Marginal Lending Facility Continues
Comment on article by: Francis Soyer 2/18/11
The below article in this speculator's opinion is a fairly serious issue. As known by many maybe .01% of money managers on this planet or who have the where with all to understand what is happening from a Global Fiscal Policy point of view, these are the beginning warning signs of what it to come as a result of the Implamentation QE II and the coming of Basel III. Basel III requires banking reserves to increase by 50% for banks and has a longer time line for compliance 2014 last I checked but European banks were said to begin adopting this new capital requirement for banks at the start of 2011.
This is where the trouble will begin after quantitative easing ends (expected to be end of June or near). This is the setup that WILL bring down the entire global financial system including equities, real estate you name it save silver, gold and hard assets as almost all currencies will reach their race to zero almost over night. Some have put together scenarios that span a week or two and those articles will follow.
Again a reiteration this is an early shot accross the bow so to speak and confirmation of what is to come.
Acute Liquidity Crisis In Europe Confirmed As Borrowing Surge On Marginal Lending Facility Continues For Second DaySubmitted by Tyler Durden on 02/18/2011 07:26 -0500
European Central Bank
The one thing that nobody is conveniently talking about that has suddenly become a big flash red light, the surge in borrowing on the ECB's Marginal Lending Facility which we noted yesterday, continues for the second day in a row, removing all speculation of this being a technical or calendar glitch, and confirming that some financial entity in Europe has entered its death rattle. Today, the ECB announced that after borrowing €15.8 billion in overnight liquidity, the highest since the program's inception in 2009, we got another increase in borrowing, this time at €16 billion in overnight liquidity needs. With expectations that this borrowing surge at a last resort rate of 1.25% would normalize disappearing, we are surprised the reaction in the EUR is not far greater: the EURUSD did contract modestly overnight, but if this is indeed the proverbial first domino we would be very concerned about the long term prospects of the European currency. What is most concerning is that after revelations of check kiting at Irish banks yesterday, which confirms that banks are using a legalized ponzi scheme to literally print each other money, that some bank - any bank - will need to resort to such a high rate source of overnight capital. As European collateral has no quality thresholds, and as the ECB will accept anything, it makes no sense for any bank to pay incremental interest just to transfer borrowing to an overnight facility with a punitive rate - simple as that. If this continues for a third day on Monday, it may well be time to follow Hugh Hendry's advice, and panic.
The below article in this speculator's opinion is a fairly serious issue. As known by many maybe .01% of money managers on this planet or who have the where with all to understand what is happening from a Global Fiscal Policy point of view, these are the beginning warning signs of what it to come as a result of the Implamentation QE II and the coming of Basel III. Basel III requires banking reserves to increase by 50% for banks and has a longer time line for compliance 2014 last I checked but European banks were said to begin adopting this new capital requirement for banks at the start of 2011.
This is where the trouble will begin after quantitative easing ends (expected to be end of June or near). This is the setup that WILL bring down the entire global financial system including equities, real estate you name it save silver, gold and hard assets as almost all currencies will reach their race to zero almost over night. Some have put together scenarios that span a week or two and those articles will follow.
Again a reiteration this is an early shot accross the bow so to speak and confirmation of what is to come.
Acute Liquidity Crisis In Europe Confirmed As Borrowing Surge On Marginal Lending Facility Continues For Second DaySubmitted by Tyler Durden on 02/18/2011 07:26 -0500
European Central Bank
The one thing that nobody is conveniently talking about that has suddenly become a big flash red light, the surge in borrowing on the ECB's Marginal Lending Facility which we noted yesterday, continues for the second day in a row, removing all speculation of this being a technical or calendar glitch, and confirming that some financial entity in Europe has entered its death rattle. Today, the ECB announced that after borrowing €15.8 billion in overnight liquidity, the highest since the program's inception in 2009, we got another increase in borrowing, this time at €16 billion in overnight liquidity needs. With expectations that this borrowing surge at a last resort rate of 1.25% would normalize disappearing, we are surprised the reaction in the EUR is not far greater: the EURUSD did contract modestly overnight, but if this is indeed the proverbial first domino we would be very concerned about the long term prospects of the European currency. What is most concerning is that after revelations of check kiting at Irish banks yesterday, which confirms that banks are using a legalized ponzi scheme to literally print each other money, that some bank - any bank - will need to resort to such a high rate source of overnight capital. As European collateral has no quality thresholds, and as the ECB will accept anything, it makes no sense for any bank to pay incremental interest just to transfer borrowing to an overnight facility with a punitive rate - simple as that. If this continues for a third day on Monday, it may well be time to follow Hugh Hendry's advice, and panic.
Frontrunning: February 18
Frontrunning: February 18
Submitted by Tyler Durden on 02/18/2011 08:50 -0500
GermanyReuters
•Mergers loom as "flash crash" back in spotlight (Reuters)
•A monetary regime for a multipolar world (FT)
•Split in Economy Keeps Lid on Prices (WSJ)
•Inflow of 'Hot Money' Hits $35.5 Bn (China Daily)
•Bahrain Military Takes Control of Capital (FT)
•Trade Judges See Flaw in China Policies (WSJ)
•German Banks' Debt Downgraded By Moody's on Restructuring Act (Bloomberg)
•Balls Warns King on Bank Credibility (FT)
•Looks Like Banks Lose on Risk Plea (NYT)
Submitted by Tyler Durden on 02/18/2011 08:50 -0500
GermanyReuters
•Mergers loom as "flash crash" back in spotlight (Reuters)
•A monetary regime for a multipolar world (FT)
•Split in Economy Keeps Lid on Prices (WSJ)
•Inflow of 'Hot Money' Hits $35.5 Bn (China Daily)
•Bahrain Military Takes Control of Capital (FT)
•Trade Judges See Flaw in China Policies (WSJ)
•German Banks' Debt Downgraded By Moody's on Restructuring Act (Bloomberg)
•Balls Warns King on Bank Credibility (FT)
•Looks Like Banks Lose on Risk Plea (NYT)
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