Monday, March 14, 2011
Thursday, March 3, 2011
Frontrunning: March 3
Frontrunning: March 3
Submitted by Tyler Durden on 03/03/2011 08:06 -0500
•Why the Dollar's Reign Is Near an End (WSJ)
•Take a bow Hatzius: John Taylor takes apart Goldman's economic "achemists and quacks" (Bloomberg) - This is what happens when you sellout to the propaganda machine
•William Cohan joins the tinfoil hat brigade - A Conspiracy With a Silver Lining (NYT)
•Gaddafi strikes oil areas, Arabs weigh peace plan (Reuters)
•No criminal charges ever: Officials Disagree on Penalties for Mortgage Mess (NYT)
•Bernanke Sees 200,000 Hit to Jobs from Budget Cuts (Reuters)
•It's Taps For the Still Weakening Dollar (RCM)
•Asia Moves to Shore Up Strategic Oil Reserves (FT)
•Beijing home sales slump in February (China Daily)
•ECB Set to Deliver Inflation Warning (WSJ)
•Obama "outraged" by attack in Germany (Reuters)
•Europe Must Plan a Reform, Not a Pact (FT)
•Merkel names ally as new defence minister (FT)
•Congress Approves Temporary Budget Bill, Avoids Shutdown (BusinessWeek)
•Gross Says Treasury Yields Too Low as Fed Approaches End of Asset Buying (Bloomberg)
•Mukherjee Signals Higher Oil May Spur India Subsidy, Risk Deficit-Cut Plan (Bloomberg)
European economic highlights:
•Euro-Zone PMI Composite for February 58.2 - lower than expected. Consensus 58.4. Previous 58.4.
•Euro-Zone PMI Services for February 56.8 - lower than expected. Consensus 57.2. Previous 57.2.
•Euro-Zone GDP for Q4 0.3% q/q 2.0% y/y – in line with expectations. Consensus 0.3% q/q 2.0% y/y. Previous 0.3% q/q 2.0% y/y.
•Euro-Zone Retail Sales for January 0.4% m/m 0.7% y/y - higher than expected. Consensus 0.3% m/m 0.0% y/y. Previous -0.6% m/m -0.9% y/y.
•Germany Retail Sales for January 1.4% m/m 2.6% y/y - higher than expected. Consensus 0.5% m/m 1.7% y/y. Previous -0.3% m/m -1.3% y/y.
•Germany PMI Services for February 58.6 - lower than expected. Consensus 59.5. Previous 59.5.
•France PMI Services for February 59.7 - lower than expected. Consensus 60.8. Previous 60.8.
•Italy PMI Services for February 53.1 - higher than expected. Consensus 51.1. Previous 49.9.
•Italy PPI for January 1.1% m/m 5.2% y/y - higher than expected. Consensus 0.9% m/m 4.6% y/y. Previous 0.6% m/m 4.6% y/y.
•UK PMI Services 52.6 - lower than expected. Consensus 53.7. Previous 54.5.
•ECB Announces Interest Rates. Consensus 1.00%. Previous 1.00%.
Submitted by Tyler Durden on 03/03/2011 08:06 -0500
•Why the Dollar's Reign Is Near an End (WSJ)
•Take a bow Hatzius: John Taylor takes apart Goldman's economic "achemists and quacks" (Bloomberg) - This is what happens when you sellout to the propaganda machine
•William Cohan joins the tinfoil hat brigade - A Conspiracy With a Silver Lining (NYT)
•Gaddafi strikes oil areas, Arabs weigh peace plan (Reuters)
•No criminal charges ever: Officials Disagree on Penalties for Mortgage Mess (NYT)
•Bernanke Sees 200,000 Hit to Jobs from Budget Cuts (Reuters)
•It's Taps For the Still Weakening Dollar (RCM)
•Asia Moves to Shore Up Strategic Oil Reserves (FT)
•Beijing home sales slump in February (China Daily)
•ECB Set to Deliver Inflation Warning (WSJ)
•Obama "outraged" by attack in Germany (Reuters)
•Europe Must Plan a Reform, Not a Pact (FT)
•Merkel names ally as new defence minister (FT)
•Congress Approves Temporary Budget Bill, Avoids Shutdown (BusinessWeek)
•Gross Says Treasury Yields Too Low as Fed Approaches End of Asset Buying (Bloomberg)
•Mukherjee Signals Higher Oil May Spur India Subsidy, Risk Deficit-Cut Plan (Bloomberg)
European economic highlights:
•Euro-Zone PMI Composite for February 58.2 - lower than expected. Consensus 58.4. Previous 58.4.
•Euro-Zone PMI Services for February 56.8 - lower than expected. Consensus 57.2. Previous 57.2.
•Euro-Zone GDP for Q4 0.3% q/q 2.0% y/y – in line with expectations. Consensus 0.3% q/q 2.0% y/y. Previous 0.3% q/q 2.0% y/y.
•Euro-Zone Retail Sales for January 0.4% m/m 0.7% y/y - higher than expected. Consensus 0.3% m/m 0.0% y/y. Previous -0.6% m/m -0.9% y/y.
•Germany Retail Sales for January 1.4% m/m 2.6% y/y - higher than expected. Consensus 0.5% m/m 1.7% y/y. Previous -0.3% m/m -1.3% y/y.
•Germany PMI Services for February 58.6 - lower than expected. Consensus 59.5. Previous 59.5.
•France PMI Services for February 59.7 - lower than expected. Consensus 60.8. Previous 60.8.
•Italy PMI Services for February 53.1 - higher than expected. Consensus 51.1. Previous 49.9.
•Italy PPI for January 1.1% m/m 5.2% y/y - higher than expected. Consensus 0.9% m/m 4.6% y/y. Previous 0.6% m/m 4.6% y/y.
•UK PMI Services 52.6 - lower than expected. Consensus 53.7. Previous 54.5.
•ECB Announces Interest Rates. Consensus 1.00%. Previous 1.00%.
Texaco dumped 18b gallons of toxicwaste and 17m gallons oil into Amazon waterways
(CNN) -- A judge in Ecuador this week awarded $8.64 billion to Ecuadorian residents of the Amazon who had sued Chevron for years of crude oil pollution, but both sides said Tuesday they will appeal the verdict.
Chevron charges the verdict against them is the "product of fraud," and the plaintiffs say the size of the award is too small in comparison to what would be needed to do a real cleanup.
Luis Yanza, speaking for the residents' group the Assembly of those Affected by Chevron, said at a news conference that the ruling was "historic" and a "collective victory." However, he said, "Eight billion dollars doesn't represent a significant amount to repair the environmental damages."
The judgment against Chevron is the latest in 18 years of litigation between the Amazon residents and Texaco, which was later purchased by Chevron. It was decided in a courtroom in the Amazon by Judge Nicolas Zambrano.
For its part, Chevron said it will also appeal.
"The Ecuadorian court's judgment is illegitimate and unenforceable," said Chevron, in a press release Monday. "It is the product of fraud and is contrary to the legitimate scientific evidence."
Both sides have until Friday to file their appeals.
Despite the pending appeal, one of the local leaders, Humberto Piaguaje, called the judgment a victory for the population that lives in the oil-producing area in northern Ecuador.
"The judge did justice and has seen reality," he said. "We know that this is only one part of our fight and we will continue until there is justice and the damage is healed. The world should know that what happened in the Amazon and our fight for life, for justice."
The case, Aguinda v. ChevronTexaco, was originally filed in New York in 1993 on behalf of 30,000 inhabitants of Ecuador's Amazon region. The suit was eventually transferred to the Ecuadorian court and Ecuadorian jurisdiction.
The lawsuit alleges that Texaco used a variety of substandard production practices in Ecuador that resulted in pollution that decimated several indigenous groups in the area, according to a fact sheet provided by the Amazon Defense Coalition.
According to the group, Chevron has admitted that Texaco dumped more than 18 billion gallons of toxic waste into Amazon waterways, abandoned more than 900 waste pits, burned millions of cubic meters of gases with no controls and spilled more than 17 million gallons of oil due to pipeline ruptures.
Cancer and other health problems were reported at higher rates in the area, the group says.
Chevron charges the verdict against them is the "product of fraud," and the plaintiffs say the size of the award is too small in comparison to what would be needed to do a real cleanup.
Luis Yanza, speaking for the residents' group the Assembly of those Affected by Chevron, said at a news conference that the ruling was "historic" and a "collective victory." However, he said, "Eight billion dollars doesn't represent a significant amount to repair the environmental damages."
The judgment against Chevron is the latest in 18 years of litigation between the Amazon residents and Texaco, which was later purchased by Chevron. It was decided in a courtroom in the Amazon by Judge Nicolas Zambrano.
For its part, Chevron said it will also appeal.
"The Ecuadorian court's judgment is illegitimate and unenforceable," said Chevron, in a press release Monday. "It is the product of fraud and is contrary to the legitimate scientific evidence."
Both sides have until Friday to file their appeals.
Despite the pending appeal, one of the local leaders, Humberto Piaguaje, called the judgment a victory for the population that lives in the oil-producing area in northern Ecuador.
"The judge did justice and has seen reality," he said. "We know that this is only one part of our fight and we will continue until there is justice and the damage is healed. The world should know that what happened in the Amazon and our fight for life, for justice."
The case, Aguinda v. ChevronTexaco, was originally filed in New York in 1993 on behalf of 30,000 inhabitants of Ecuador's Amazon region. The suit was eventually transferred to the Ecuadorian court and Ecuadorian jurisdiction.
The lawsuit alleges that Texaco used a variety of substandard production practices in Ecuador that resulted in pollution that decimated several indigenous groups in the area, according to a fact sheet provided by the Amazon Defense Coalition.
According to the group, Chevron has admitted that Texaco dumped more than 18 billion gallons of toxic waste into Amazon waterways, abandoned more than 900 waste pits, burned millions of cubic meters of gases with no controls and spilled more than 17 million gallons of oil due to pipeline ruptures.
Cancer and other health problems were reported at higher rates in the area, the group says.
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’
Catherine E. Shoichet,
CNN
March 2, 2011
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader Moammar Gadhafi has a clear aim: military invasion.
“Let’s not get carried away by the drums of war, because the United States, I am sure that they are exaggerating and distorting things to justify an invasion,” Chavez said Monday, according to Venezuelan state media.
At a Monday meeting of the U.N. Human Rights Council in Geneva, Switzerland, U.S. Secretary of State Hillary Clinton said the United States was exploring “all possible options,” and that “nothing is off the table so long as the Libyan government continues to threaten and kill Libyan citizens.”
Asked at a news conference Monday whether the United States planned an imminent military response in Libya, Clinton said, “No.”
Speaking Monday in the Venezuelan capital, Caracas, Chavez proposed sending an international committee to Libya to mediate and help develop a peaceful solution to unrest in the North African country.
"Instead of sending Marines and tanks and planes, why don't we send a goodwill commission to try to help so that they do not continue killing in Libya? They are our brothers," he said in a speech televised on the government-run network.
Chavez and Gadhafi have a close relationship, having bonded partly over shared opposition to U.S. global influence.
At a lavish Tripoli celebration commemorating 40 years of Gadhafi's leadership in 2009, the two leaders sat side by side during a two-hour military parade. That same year, a new football stadium in Benghazi, Libya, was named after the Venezuelan leader.
As rumors swirled about Gadhafi and his whereabouts last week, some suggested that he may be en route to Venezuela. Those reports proved to be false; the Libyan leader later spoke publicly in Tripoli.
But the close ties between the two leaders remain strong. On Monday, Chavez said Gadhafi "has been my friend and our friend for a long time" in remarks broadcast on Venezuelan state television.
"We must be cautious. We know what our policy is: We do not support invasions or massacres or anything, no matter who does it. But there is no doubt that, regarding Libya, a campaign of lies is being woven -- the same that has been woven about Venezuela for a long time," he said.
The U.N. Security Council over the weekend voted for tough restrictions and possible war crimes charges against the Libyan regime.
The Security Council measures -- which include an arms embargo, an asset freeze and travel bans for Gadhafi and members of his family and associates -- also referred the situation unfolding in Libya to the International Criminal Court.
White House press secretary Jay Carney said Monday that the U.S. government was considering the possibility of imposing a no-fly zone over Libya.
"Col. Gadhafi and those around him must be held accountable for these acts, which violate international legal obligations and common decency. Through their actions, they have lost the legitimacy to govern," Clinton said Monday.
"And the people of Libya have made themselves clear: It is time for Gadhafi to go, now, without further violence or delay."
Catherine E. Shoichet,
CNN
March 2, 2011
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader Moammar Gadhafi has a clear aim: military invasion.
“Let’s not get carried away by the drums of war, because the United States, I am sure that they are exaggerating and distorting things to justify an invasion,” Chavez said Monday, according to Venezuelan state media.
At a Monday meeting of the U.N. Human Rights Council in Geneva, Switzerland, U.S. Secretary of State Hillary Clinton said the United States was exploring “all possible options,” and that “nothing is off the table so long as the Libyan government continues to threaten and kill Libyan citizens.”
Asked at a news conference Monday whether the United States planned an imminent military response in Libya, Clinton said, “No.”
Speaking Monday in the Venezuelan capital, Caracas, Chavez proposed sending an international committee to Libya to mediate and help develop a peaceful solution to unrest in the North African country.
"Instead of sending Marines and tanks and planes, why don't we send a goodwill commission to try to help so that they do not continue killing in Libya? They are our brothers," he said in a speech televised on the government-run network.
Chavez and Gadhafi have a close relationship, having bonded partly over shared opposition to U.S. global influence.
At a lavish Tripoli celebration commemorating 40 years of Gadhafi's leadership in 2009, the two leaders sat side by side during a two-hour military parade. That same year, a new football stadium in Benghazi, Libya, was named after the Venezuelan leader.
As rumors swirled about Gadhafi and his whereabouts last week, some suggested that he may be en route to Venezuela. Those reports proved to be false; the Libyan leader later spoke publicly in Tripoli.
But the close ties between the two leaders remain strong. On Monday, Chavez said Gadhafi "has been my friend and our friend for a long time" in remarks broadcast on Venezuelan state television.
"We must be cautious. We know what our policy is: We do not support invasions or massacres or anything, no matter who does it. But there is no doubt that, regarding Libya, a campaign of lies is being woven -- the same that has been woven about Venezuela for a long time," he said.
The U.N. Security Council over the weekend voted for tough restrictions and possible war crimes charges against the Libyan regime.
The Security Council measures -- which include an arms embargo, an asset freeze and travel bans for Gadhafi and members of his family and associates -- also referred the situation unfolding in Libya to the International Criminal Court.
White House press secretary Jay Carney said Monday that the U.S. government was considering the possibility of imposing a no-fly zone over Libya.
"Col. Gadhafi and those around him must be held accountable for these acts, which violate international legal obligations and common decency. Through their actions, they have lost the legitimacy to govern," Clinton said Monday.
"And the people of Libya have made themselves clear: It is time for Gadhafi to go, now, without further violence or delay."
US Mint is cutting back on allocations of American Silver Eagles
Bill Haynes, President of CMI Gold & Silver, one of the largest dealers in the United States informed King World News today that the US Mint is cutting back on allocations of American Silver Eagles and this is resulting in higher premiums. Haynes told KWN in a phone interview, “Today the US Mint notified its eleven authorized purchasers that their allotments are being reduced and as a result the authorized purchasers increased their premiums to the dealers.”
Bill Haynes continues:
“Eric, the Mint sold about 10 million ounces of American Silver Eagles so far this year, 6.4 million in January and about half that in February. The Mint had no problem producing those record quantities, but now the US Mint is cutting allocations to its authorized distributors. There is a glitch somewhere but we just don’t know what it is.”
King World News also contacted the US Mint today to get a direct comment from them regarding a story that they had suspended production of Silver Amercan Eagles. As it turns out this information which was taken off of the US Mint’s website is over a year old. In a telephone interview with King World News Michael White of the US Mint stated, “This language was on our web site over a year ago when we did not produce American Eagle Silver Uncirculated Coins. The site will be updated shortly.”
We will have to wait and see what the update is from the US Mint, but we do know that Bill Haynes, a veteran of nearly four decades in the gold and silver business has confirmed a reduction in allotments of Silver American Eagles and an increase in premiums.
Bill Haynes continues:
“Eric, the Mint sold about 10 million ounces of American Silver Eagles so far this year, 6.4 million in January and about half that in February. The Mint had no problem producing those record quantities, but now the US Mint is cutting allocations to its authorized distributors. There is a glitch somewhere but we just don’t know what it is.”
King World News also contacted the US Mint today to get a direct comment from them regarding a story that they had suspended production of Silver Amercan Eagles. As it turns out this information which was taken off of the US Mint’s website is over a year old. In a telephone interview with King World News Michael White of the US Mint stated, “This language was on our web site over a year ago when we did not produce American Eagle Silver Uncirculated Coins. The site will be updated shortly.”
We will have to wait and see what the update is from the US Mint, but we do know that Bill Haynes, a veteran of nearly four decades in the gold and silver business has confirmed a reduction in allotments of Silver American Eagles and an increase in premiums.
Ron Paul: Fall of the Federal Empire
Ron Paul: Fall of the Federal Empire
7 hours ago - FOXBusiness 8:43
1083 views
Congressman Ron Paul, (R-Texas), on Bernanke?s testimony on the Hill and what the future will be for the Arabs in the Middle East.
http://finance.yahoo.com/video/economy-18773128/ron-paul-fall-of-the-federal-empire-24394905
7 hours ago - FOXBusiness 8:43
1083 views
Congressman Ron Paul, (R-Texas), on Bernanke?s testimony on the Hill and what the future will be for the Arabs in the Middle East.
http://finance.yahoo.com/video/economy-18773128/ron-paul-fall-of-the-federal-empire-24394905
Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme
Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme
FOR IMMEDIATE RELEASE
2011-53
Washington, D.C., March 1, 2011 – The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.
The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.
FOR IMMEDIATE RELEASE
2011-53
Washington, D.C., March 1, 2011 – The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.
The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.
Gates: Libyan no-fly zone would mean widespread air strikes
Gates: Libyan no-fly zone would mean widespread air strikes
By John T. Bennett - 03/02/11 02:41 PM ET
Defense Secretary Robert Gates on Wednesday said the U.S. military could establish a no-fly zone over Libya, but he cautioned that doing so would first require widespread air strikes across that nation.
“If it’s ordered, we can do it,” Gates told the House Appropriations's Defense subcommittee.
But establishing control of Libyan air space would “start with attacks to destroy” Libyan air defense systems. That kind of assault would require more U.S. military aircraft than “you would find on a single aircraft carrier.”
With so many fighter jets involved in other conflicts, the needed additional jets would have to be redeployed.
Gates told the panel that U.S. military involvement in Libya would require Congress to approve a use-of-force measure.
Adm. Michael Mullen, Joint Chiefs chairman, reiterated on Wednesday that U.S. security officials have still been unable to confirm that Libyan military jets fired on opposition members.
White House press secretary Jay Carney and Secretary of State Hillary Clinton in separate appearances on Wednesday said all options remain on the table.
The White House on Wednesday insisted that there were no inconsistencies in administration policy when it comes to the no-fly zone.
"The fact that the no-fly zone idea is complex does not mean it's not on the table," Carney said. "We have not ruled any options out."
This story was posted at 11:42 a.m. and updated at 2:41 p.m.
By John T. Bennett - 03/02/11 02:41 PM ET
Defense Secretary Robert Gates on Wednesday said the U.S. military could establish a no-fly zone over Libya, but he cautioned that doing so would first require widespread air strikes across that nation.
“If it’s ordered, we can do it,” Gates told the House Appropriations's Defense subcommittee.
But establishing control of Libyan air space would “start with attacks to destroy” Libyan air defense systems. That kind of assault would require more U.S. military aircraft than “you would find on a single aircraft carrier.”
With so many fighter jets involved in other conflicts, the needed additional jets would have to be redeployed.
Gates told the panel that U.S. military involvement in Libya would require Congress to approve a use-of-force measure.
Adm. Michael Mullen, Joint Chiefs chairman, reiterated on Wednesday that U.S. security officials have still been unable to confirm that Libyan military jets fired on opposition members.
White House press secretary Jay Carney and Secretary of State Hillary Clinton in separate appearances on Wednesday said all options remain on the table.
The White House on Wednesday insisted that there were no inconsistencies in administration policy when it comes to the no-fly zone.
"The fact that the no-fly zone idea is complex does not mean it's not on the table," Carney said. "We have not ruled any options out."
This story was posted at 11:42 a.m. and updated at 2:41 p.m.
China "Attacks The Dollar"
China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency StatusSubmitted by Tyler Durden on 03/02/2011 20:24 -0500
In a surprising turn of events, today's biggest piece of news received a mere two paragraph blurb on Reuters, and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People's Bank of China. Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
A less diplomatic version implies that the relationship between China and the US would suffer a seismic shift in which the game theoretical model of Mutual Assured Destruction, and symbiotic monetary and fiscal policies, would no longer exist, allowing China to pursue its fate completely independent of any economic shocks that the increasingly distressed United States may be going through.
And confirming that the PBoC announcement is far more serious than the amount of airtime allotted to it by the mainstream media, is the just released article in Spiegel "China Attacked the Dollar" (google translated):
The Chinese central bank surprised with a spectacular announcement: The would-be superpower wants to handle their entire future foreign trade in yuan, not in dollars. Beijing shakes America's claim to represent the key currency - with serious consequences for the U.S..
The announcement was inconspicuous , but it has the potential, to permanently change the balance of power on the world currency market: China strengthens the international role of the yuan. All exporters and importers will, this year, be allowed to settle their business with their foreign partners in Yuan, the central bank said on Wednesday in Beijing.
This will respond to the growing importance of the yuan as a global reserve currency. "The market demand for cross-border use of the yuan rises," said the central bank. The PBoC had previously tested this plan by allowing 67 000 enterprises in 20 provinces to run their business abroad in yuan. The trade volume amounted to the equivalent of €56 billion.
Now the amount of yuan to be extended, it should be handled much more business in Chinese currency - and less in the U.S. Chinese companies trade at present often in dollars, they are thus dependent on the decisions of the U.S. Federal Reserve to pay on it in a rising oil price and will have pay higher transaction fees than necessary. That should change now.
Currently, the People's Republic can hardly take yuan out of the country and even that is monitored within the boundary of all legitimate capital flows. Chinese exporters have to change a large part of their euro, yen or dollars at a fixed rate revenue in yuan. Foreign companies wishing to do business in China must do so in Yuan, they can exchange their money in the People's Republic. Tourists are allowed a maximum of 20,000 yuan and exporting. Yuan an international market can not occur - and not on supply and demand-based exchange rate.
Needless to say, should the yuan be seen increasingly as a reserve currency, all of this, and virtually everything else is about to change.
The only question is whether or not the Yuan will cement its status at the top of the currency pyramid by allowing the backing of the currency with individual or a basket of commodities. If that were to happen, it would be the last nail in the coffin of the already terminally ill dollar.
In a surprising turn of events, today's biggest piece of news received a mere two paragraph blurb on Reuters, and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People's Bank of China. Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
A less diplomatic version implies that the relationship between China and the US would suffer a seismic shift in which the game theoretical model of Mutual Assured Destruction, and symbiotic monetary and fiscal policies, would no longer exist, allowing China to pursue its fate completely independent of any economic shocks that the increasingly distressed United States may be going through.
And confirming that the PBoC announcement is far more serious than the amount of airtime allotted to it by the mainstream media, is the just released article in Spiegel "China Attacked the Dollar" (google translated):
The Chinese central bank surprised with a spectacular announcement: The would-be superpower wants to handle their entire future foreign trade in yuan, not in dollars. Beijing shakes America's claim to represent the key currency - with serious consequences for the U.S..
The announcement was inconspicuous , but it has the potential, to permanently change the balance of power on the world currency market: China strengthens the international role of the yuan. All exporters and importers will, this year, be allowed to settle their business with their foreign partners in Yuan, the central bank said on Wednesday in Beijing.
This will respond to the growing importance of the yuan as a global reserve currency. "The market demand for cross-border use of the yuan rises," said the central bank. The PBoC had previously tested this plan by allowing 67 000 enterprises in 20 provinces to run their business abroad in yuan. The trade volume amounted to the equivalent of €56 billion.
Now the amount of yuan to be extended, it should be handled much more business in Chinese currency - and less in the U.S. Chinese companies trade at present often in dollars, they are thus dependent on the decisions of the U.S. Federal Reserve to pay on it in a rising oil price and will have pay higher transaction fees than necessary. That should change now.
Currently, the People's Republic can hardly take yuan out of the country and even that is monitored within the boundary of all legitimate capital flows. Chinese exporters have to change a large part of their euro, yen or dollars at a fixed rate revenue in yuan. Foreign companies wishing to do business in China must do so in Yuan, they can exchange their money in the People's Republic. Tourists are allowed a maximum of 20,000 yuan and exporting. Yuan an international market can not occur - and not on supply and demand-based exchange rate.
Needless to say, should the yuan be seen increasingly as a reserve currency, all of this, and virtually everything else is about to change.
The only question is whether or not the Yuan will cement its status at the top of the currency pyramid by allowing the backing of the currency with individual or a basket of commodities. If that were to happen, it would be the last nail in the coffin of the already terminally ill dollar.
Tuesday, March 1, 2011
Muslim Brotherhood Plans Day of Rage for March 3rd in D.C.
Feb 21,2011
Whether or not Muslim extremists Anjem Choudary, Abu Izzadeen and Sayful Islam will actually be able to pull it off or not remains to be seen. However, the trio are planning to stand on American soil in front of the White House on March 3 and proclaim a “call to arms” in which they will , “call for Sharia law to be established across the U.S.,” according to the Daily Mail on Sunday.
Anjem Choudary is the same extremist who has insisted that the Islamic flag will one day fly over the White House. He also said that he anticipates that thousands will turnout. Whether that is a bunch of psychological warfare or there has truly been some focused organizing going on behind the scenes will eventually become evident.
Meanwhile, the AP has reported that Moammar Gadhafi has declared that if Libya ends up in a civil war, that there will be oil wells in Libya that go up in flames.
To make matters even more interesting, Haaretz reported on Sunday that Iranian warships have made it through the Suez Canal while Al Jazeera reports that Egypt is denying the claim.
If a crowd ends up being drawn to the White House on March 3, it’s possible that the U.S. government will be in shut-down mode anyway given the fact that Reuters reported on Sunday that there has been some talk of a government shutdown if lawmakers can’t agree on a budget. It was also noted that the government is only funded through March 4. One can’t help but wonder if America would have Sharia law thrust upon it if the Republicans were to leave the state like the Democrats did in Wisconsin.
It would seem that Brigitte Gabriel’s warning about the attempt of Muslim Extremists to force an Islamic government into power in the United States is beginning to manifest. The Arab Christian is the founder and president of ACT! for America and has written a bestselling book entitled They Must Be Stopped: Why We Must Defeat Radical Islam and How We Can Do It. She told One News Now earlier this month that, “I actually dedicate a chapter to the Muslim Brotherhood's project for North America -- not only to what they have done in the Middle East and their goals of bringing back an Islamic government totalitarian regime worldwide, but their plan to the United States as well.”
She also stated that, “We not only have the fox watching the hen house; we have the fox inside the hen house right now," she notes. "This is why Obama is being wishy-washy on what's happening in Egypt, because the Obama administration right now is basically taking advice on Middle East policy from the Muslim Brotherhood front organizations in America."
It will certainly be interesting to see just how all the convenient crises brewing in DC will be taken advantage of in the coming days.
Whether or not Muslim extremists Anjem Choudary, Abu Izzadeen and Sayful Islam will actually be able to pull it off or not remains to be seen. However, the trio are planning to stand on American soil in front of the White House on March 3 and proclaim a “call to arms” in which they will , “call for Sharia law to be established across the U.S.,” according to the Daily Mail on Sunday.
Anjem Choudary is the same extremist who has insisted that the Islamic flag will one day fly over the White House. He also said that he anticipates that thousands will turnout. Whether that is a bunch of psychological warfare or there has truly been some focused organizing going on behind the scenes will eventually become evident.
Meanwhile, the AP has reported that Moammar Gadhafi has declared that if Libya ends up in a civil war, that there will be oil wells in Libya that go up in flames.
To make matters even more interesting, Haaretz reported on Sunday that Iranian warships have made it through the Suez Canal while Al Jazeera reports that Egypt is denying the claim.
If a crowd ends up being drawn to the White House on March 3, it’s possible that the U.S. government will be in shut-down mode anyway given the fact that Reuters reported on Sunday that there has been some talk of a government shutdown if lawmakers can’t agree on a budget. It was also noted that the government is only funded through March 4. One can’t help but wonder if America would have Sharia law thrust upon it if the Republicans were to leave the state like the Democrats did in Wisconsin.
It would seem that Brigitte Gabriel’s warning about the attempt of Muslim Extremists to force an Islamic government into power in the United States is beginning to manifest. The Arab Christian is the founder and president of ACT! for America and has written a bestselling book entitled They Must Be Stopped: Why We Must Defeat Radical Islam and How We Can Do It. She told One News Now earlier this month that, “I actually dedicate a chapter to the Muslim Brotherhood's project for North America -- not only to what they have done in the Middle East and their goals of bringing back an Islamic government totalitarian regime worldwide, but their plan to the United States as well.”
She also stated that, “We not only have the fox watching the hen house; we have the fox inside the hen house right now," she notes. "This is why Obama is being wishy-washy on what's happening in Egypt, because the Obama administration right now is basically taking advice on Middle East policy from the Muslim Brotherhood front organizations in America."
It will certainly be interesting to see just how all the convenient crises brewing in DC will be taken advantage of in the coming days.
U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
LATEST NEWS
Stock futures pare gains as crude oil rises
NEW YORK (Reuters) - U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
Full Article
Bernanke to tread cautiously before Congress
March 01, 2011 02:36 AM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke will likely remain skeptical about the strength of the economic recovery in testimony on Tuesday, despite recent data pointing to improvement, signaling the central bank is unlikely to cut short its $600 billion stimulus plan.
Full Article
February auto sales seen up but oil risk looms
March 01, 2011 03:48 AM ET
DETROIT (Reuters) - U.S. auto sales are expected to show a gain of about 20 percent from the still-depressed levels of a year earlier in February, but the recent rise in oil prices could slow or even derail the industry's recovery, analysts and industry executives say.
Full Article
Morgan Stanley hit by China-based hackers: report
March 01, 2011 07:17 AM ET
NEW YORK (Reuters) - Morgan Stanley experienced a "very sensitive" break-in to its network by the same China-based hackers who attacked Google Inc's computers more than a year ago, Bloomberg reported, citing leaked emails from an Internet security company.
Full Article
World factory input costs rising sharply
March 01, 2011 06:21 AM ET
LONDON/BEIJING (Reuters) - Factory input costs leapt across the globe in February, the latest sign of rising inflationary pressures, while euro zone manufacturing grew at its fastest in nearly 10 years, surveys showed on Tuesday.
Full Article
US TOP NEWS
Gaddafi deploys forces as world raises Libya pressure
March 01, 2011 07:40 AM ET
TRIPOLI (Reuters) - Libyan leader Muammar Gaddafi despatched forces to a western border area on Tuesday in defiance of Western military and economic pressure, stirring fears that the bloodiest Arab revolt may grow more violent.
Full Article
Wisconsin governor gives Democrats ultimatum
March 01, 2011 07:11 AM ET
MADISON, Wisc. (Reuters) - Republican Governor Scott Walker on Monday gave absent Democratic lawmakers an ultimatum to return to Wisconsin within 24 hours and vote on a proposal to reduce the power of public sector unions or the state would miss out on a huge debt restructuring.
Full Article
Blackstone buys Centro's U.S. malls for $9.4 billion
March 01, 2011 12:35 AM ET
SYDNEY (Reuters) - Private equity firm Blackstone Group LP has bought nearly 600 U.S. shopping malls from Australia's debt-laden Centro Properties for $9.4 billion in one of the biggest global property deals since the credit crisis.
Full Article
Government shutdown unlikely, but budget battle remains
February 28, 2011 06:32 PM ET
WASHINGTON (Reuters) - A deal to avert a government shutdown took shape in Congress on Monday, but the short-term spending measure would do nothing to resolve the bitter debate over federal spending.
Full Article
Lawmakers question Medicare payment contractors
March 01, 2011 12:13 AM ET
WASHINGTON (Reuters) - Democratic senators on Tuesday expressed concern that companies hired to help pay and oversee medical claims under the Medicare health insurance program may have costly conflicts of interest.
Full Article
Stock futures pare gains as crude oil rises
NEW YORK (Reuters) - U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
Full Article
Bernanke to tread cautiously before Congress
March 01, 2011 02:36 AM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke will likely remain skeptical about the strength of the economic recovery in testimony on Tuesday, despite recent data pointing to improvement, signaling the central bank is unlikely to cut short its $600 billion stimulus plan.
Full Article
February auto sales seen up but oil risk looms
March 01, 2011 03:48 AM ET
DETROIT (Reuters) - U.S. auto sales are expected to show a gain of about 20 percent from the still-depressed levels of a year earlier in February, but the recent rise in oil prices could slow or even derail the industry's recovery, analysts and industry executives say.
Full Article
Morgan Stanley hit by China-based hackers: report
March 01, 2011 07:17 AM ET
NEW YORK (Reuters) - Morgan Stanley experienced a "very sensitive" break-in to its network by the same China-based hackers who attacked Google Inc's computers more than a year ago, Bloomberg reported, citing leaked emails from an Internet security company.
Full Article
World factory input costs rising sharply
March 01, 2011 06:21 AM ET
LONDON/BEIJING (Reuters) - Factory input costs leapt across the globe in February, the latest sign of rising inflationary pressures, while euro zone manufacturing grew at its fastest in nearly 10 years, surveys showed on Tuesday.
Full Article
US TOP NEWS
Gaddafi deploys forces as world raises Libya pressure
March 01, 2011 07:40 AM ET
TRIPOLI (Reuters) - Libyan leader Muammar Gaddafi despatched forces to a western border area on Tuesday in defiance of Western military and economic pressure, stirring fears that the bloodiest Arab revolt may grow more violent.
Full Article
Wisconsin governor gives Democrats ultimatum
March 01, 2011 07:11 AM ET
MADISON, Wisc. (Reuters) - Republican Governor Scott Walker on Monday gave absent Democratic lawmakers an ultimatum to return to Wisconsin within 24 hours and vote on a proposal to reduce the power of public sector unions or the state would miss out on a huge debt restructuring.
Full Article
Blackstone buys Centro's U.S. malls for $9.4 billion
March 01, 2011 12:35 AM ET
SYDNEY (Reuters) - Private equity firm Blackstone Group LP has bought nearly 600 U.S. shopping malls from Australia's debt-laden Centro Properties for $9.4 billion in one of the biggest global property deals since the credit crisis.
Full Article
Government shutdown unlikely, but budget battle remains
February 28, 2011 06:32 PM ET
WASHINGTON (Reuters) - A deal to avert a government shutdown took shape in Congress on Monday, but the short-term spending measure would do nothing to resolve the bitter debate over federal spending.
Full Article
Lawmakers question Medicare payment contractors
March 01, 2011 12:13 AM ET
WASHINGTON (Reuters) - Democratic senators on Tuesday expressed concern that companies hired to help pay and oversee medical claims under the Medicare health insurance program may have costly conflicts of interest.
Full Article
Silver Hits Fresh Post Hunt Brother High Of $34.43 On News Saudi Has Sent Tanks To Bahrain
Silver Hits Fresh Post Hunt Brother High Of $34.43 On News Saudi Has Sent Tanks To Bahrain
Submitted by Tyler Durden on 03/01/2011 07:12 -0500
Middle East Newspaper Saudi Arabia
If RIA Novosti's update on the Middle East escalation is correct, the Middle East's worst kept secret, that Saudi Arabia would interfere militarily in Bahrain before the country fell, has just been confirmed. From RIA: "Saudi Arabia has sent dozens of tanks to Bahrain, where anti-government protests continue for about two weeks, Egypt's Al-Masry Al-Youm newspaper said on Tuesday. Eyewitnesses reported seeing "15 tank carriers carrying two tanks each heading towards Bahrain" along the 25-km King Fahd causeway, which links the small island nation of Bahrain to Saudi Arabia." And while nobody expects the DXY to do much if anything on this news, now that the dollar is irrelevant in the FX realm, the same can not be said about silver. Silver just hit $34.43 minutes ago, the highest print in the last 31 years.
More from RIA:
Protestors are mainly Shiites account for about 70% of the Bahraini population, but have long complained of discrimination and other abuses by the Sunni Khalifa dynasty that has ruled the tiny Gulf nation for more than two centuries.
In the worst unrest in the kingdom since the 1990s, a wave of protests swept across Bahrain in the past weeks. At least six people were killed and hundreds injured in clashes with police.
Opposition threatens to hold more protests and a nationwide strike if the government refuses to resign.
And a confirming report from Press TV:
Pro-democracy protests in Bahrain have shown no sign of decline after almost two weeks. The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Witnesses said that the causeway was blocked as "15 tank carriers carrying two tanks each were heading towards Bahrain," Egypt's al-Masry al-Youm daily reported in its latest edition.
Given the popular protests in the Persian Gulf kingdom, the transfer of the military hardware from Saudi Arabia to Bahrain seems highly unusual, commuters traveling along the 25-km causeway said.
The development follows a decision by the Bahraini military on Saturday to withdraw their vehicles out of the capital's Pearl Square after a deadly police attack on protesters, a condition the opposition had set to begin talks.
The arrival of tanks from Saudi Arabia also occurs on the eve of yet another scheduled pro-democracy rally on Tuesday organized by the Bahraini opposition and protesters in Manama's flashpoint Pearl Square.
Massive protests in Bahrain, which hosts the US Navy's Fifth Fleet in the region, have shown no sign of a decline after almost two weeks.
The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Fears of Saudi intervention in the ongoing Bahraini uprising first came to the fore last week when unconfirmed reports emerged on Wednesday.
Submitted by Tyler Durden on 03/01/2011 07:12 -0500
Middle East Newspaper Saudi Arabia
If RIA Novosti's update on the Middle East escalation is correct, the Middle East's worst kept secret, that Saudi Arabia would interfere militarily in Bahrain before the country fell, has just been confirmed. From RIA: "Saudi Arabia has sent dozens of tanks to Bahrain, where anti-government protests continue for about two weeks, Egypt's Al-Masry Al-Youm newspaper said on Tuesday. Eyewitnesses reported seeing "15 tank carriers carrying two tanks each heading towards Bahrain" along the 25-km King Fahd causeway, which links the small island nation of Bahrain to Saudi Arabia." And while nobody expects the DXY to do much if anything on this news, now that the dollar is irrelevant in the FX realm, the same can not be said about silver. Silver just hit $34.43 minutes ago, the highest print in the last 31 years.
More from RIA:
Protestors are mainly Shiites account for about 70% of the Bahraini population, but have long complained of discrimination and other abuses by the Sunni Khalifa dynasty that has ruled the tiny Gulf nation for more than two centuries.
In the worst unrest in the kingdom since the 1990s, a wave of protests swept across Bahrain in the past weeks. At least six people were killed and hundreds injured in clashes with police.
Opposition threatens to hold more protests and a nationwide strike if the government refuses to resign.
And a confirming report from Press TV:
Pro-democracy protests in Bahrain have shown no sign of decline after almost two weeks. The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Witnesses said that the causeway was blocked as "15 tank carriers carrying two tanks each were heading towards Bahrain," Egypt's al-Masry al-Youm daily reported in its latest edition.
Given the popular protests in the Persian Gulf kingdom, the transfer of the military hardware from Saudi Arabia to Bahrain seems highly unusual, commuters traveling along the 25-km causeway said.
The development follows a decision by the Bahraini military on Saturday to withdraw their vehicles out of the capital's Pearl Square after a deadly police attack on protesters, a condition the opposition had set to begin talks.
The arrival of tanks from Saudi Arabia also occurs on the eve of yet another scheduled pro-democracy rally on Tuesday organized by the Bahraini opposition and protesters in Manama's flashpoint Pearl Square.
Massive protests in Bahrain, which hosts the US Navy's Fifth Fleet in the region, have shown no sign of a decline after almost two weeks.
The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Fears of Saudi intervention in the ongoing Bahraini uprising first came to the fore last week when unconfirmed reports emerged on Wednesday.
Monday, February 28, 2011
Mish's Global Economic Trend Analysis
Mish's Global Economic Trend Analysis
______________________________________
• Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
• China Cracks Down on Mid-East Style Protests With Water Canons; Police Blanket Shanghai, Beijing; Internet Search for "Egypt" and "Tunisia" Blocked
• Libyan Rebels Tighten Ring Around Tripoli; Oman Sultan Reshuffles Cabinet After Protests
• Massive Rout in Irish Elections; Collision Course with the EU; Default the Best Option for Ireland
Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
Posted: 27 Feb 2011 04:27 PM PST
The New York Times reports Arab World Embraces Israeli’s YouTube Spoof of Qaddafi Rant.
A satirical YouTube clip mocking Col. Muammar el-Qaddafi’s megalomania is fast becoming a popular token of the Libya uprising across Middle East. And in an added affront to Colonel Qaddafi, it was created by an Israeli living in Tel Aviv.
Noy Alooshe, 31, an Israeli journalist, musician and Internet buff, said he saw Colonel Qaddafi’s televised speech last Tuesday in which the Libyan leader vowed to hunt down protesters “inch by inch, house by house, home by home, alleyway by alleyway,” and immediately identified it as a “classic hit.”
“He was dressed strangely, and he raised his arms” like at a trance party, Mr. Alooshe said in a telephone interview on Sunday. Then there were Colonel Qaddafi’s words with their natural beat.
Mr. Alooshe spent a few hours at the computer, using Auto-Tune pitch corrector technology to set the speech to the music of “Hey Baby,” a 2010 electro hip-hop song by American rapper Pitbull, featuring another artist, T-Pain. He titled it “Zenga-Zenga,” echoing Col. Qaddafi’s repetition of the word zanqa, Arabic for alleyway.
Mr. Alooshe said he was a little worried that if the Libyan leader survived, he could send one of his sons after him. But he said it was “also very exciting to be making waves in the Arab world as an Israeli.”
As one surfer wrote in an Arabic talkback early Sunday, “What’s the problem if he’s an Israeli? The video is still funny.” He signed off with the international cyber-laugh, “Hahaha.”
Two Versions, With and Without Dancers
original smash hit with dancers
Zenga Zenga Original Link: http://www.youtube.com/watch?v=cBY-0n4esNY
revised version without dancers
Zenga Zenga Revised Link: http://www.youtube.com/watch?v=6GcUutnU2gk
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
______________________________________
• Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
• China Cracks Down on Mid-East Style Protests With Water Canons; Police Blanket Shanghai, Beijing; Internet Search for "Egypt" and "Tunisia" Blocked
• Libyan Rebels Tighten Ring Around Tripoli; Oman Sultan Reshuffles Cabinet After Protests
• Massive Rout in Irish Elections; Collision Course with the EU; Default the Best Option for Ireland
Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
Posted: 27 Feb 2011 04:27 PM PST
The New York Times reports Arab World Embraces Israeli’s YouTube Spoof of Qaddafi Rant.
A satirical YouTube clip mocking Col. Muammar el-Qaddafi’s megalomania is fast becoming a popular token of the Libya uprising across Middle East. And in an added affront to Colonel Qaddafi, it was created by an Israeli living in Tel Aviv.
Noy Alooshe, 31, an Israeli journalist, musician and Internet buff, said he saw Colonel Qaddafi’s televised speech last Tuesday in which the Libyan leader vowed to hunt down protesters “inch by inch, house by house, home by home, alleyway by alleyway,” and immediately identified it as a “classic hit.”
“He was dressed strangely, and he raised his arms” like at a trance party, Mr. Alooshe said in a telephone interview on Sunday. Then there were Colonel Qaddafi’s words with their natural beat.
Mr. Alooshe spent a few hours at the computer, using Auto-Tune pitch corrector technology to set the speech to the music of “Hey Baby,” a 2010 electro hip-hop song by American rapper Pitbull, featuring another artist, T-Pain. He titled it “Zenga-Zenga,” echoing Col. Qaddafi’s repetition of the word zanqa, Arabic for alleyway.
Mr. Alooshe said he was a little worried that if the Libyan leader survived, he could send one of his sons after him. But he said it was “also very exciting to be making waves in the Arab world as an Israeli.”
As one surfer wrote in an Arabic talkback early Sunday, “What’s the problem if he’s an Israeli? The video is still funny.” He signed off with the international cyber-laugh, “Hahaha.”
Two Versions, With and Without Dancers
original smash hit with dancers
Zenga Zenga Original Link: http://www.youtube.com/watch?v=cBY-0n4esNY
revised version without dancers
Zenga Zenga Revised Link: http://www.youtube.com/watch?v=6GcUutnU2gk
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
A Higher Percentage of Americans Believed in King George During the Revolutionary War than Believe in Congress Today
A Higher Percentage of Americans Believed in King George During the Revolutionary War than Believe in Congress Today
Submitted by George Washington on 02/27/2011 15:57 -0500
Washington’s Blog
Influential Harvard and Stanford law professor Lawrence Lessig noted in a must-watch speech last week that polls show that only 11% of the American people have confidence in Congress.
He notes that more people believed in King George at the time of the Revolutionary War than believe in congress today.
He's right.
Historians have estimated that between 15 and 20% of the white population of the colonies were Loyalists
Watch:
Submitted by George Washington on 02/27/2011 15:57 -0500
Washington’s Blog
Influential Harvard and Stanford law professor Lawrence Lessig noted in a must-watch speech last week that polls show that only 11% of the American people have confidence in Congress.
He notes that more people believed in King George at the time of the Revolutionary War than believe in congress today.
He's right.
Historians have estimated that between 15 and 20% of the white population of the colonies were Loyalists
Watch:
Feb 25 (Reuters) - Regulators closed one bank in the U.S. on Friday, bringing to 23 the total number of bank failures in 2011
Feb 25 (Reuters) - Regulators closed one bank in the U.S. on Friday, bringing to 23 the total number of bank failures in 2011
In 2010 157 banks failed following 140 failures in 2009.
The bulk of the failures increasingly have been smaller institutions, those with less than $1 billion in assets, as large banks have recovered more quickly from the 2007-2009 financial crisis.
The FDIC announced the closure on Friday of Valley Community Bank, St. Charles, Illinois, which had about $123.8 million in assets and $124.2 million in deposits as of December 31. First State Bank, Mendota, Illinois will assume the deposits and has agreed to purchase essentially all of the assets.
Banks that failed in 2010 had total assets of $92 billion, compared with $169.7 billion the previous year.
FDIC Chairman Sheila Bair has said the agency expects the number of failures to drop in 2011.
In the FDIC's most recent quarterly report, released on Feb. 23, the agency said the number of banks on the "problem list" grew to 884 from 860.
Most of these institutions will not fail but the list provides an indication of how many banks are struggling.
Earlier this week, however, Bair said the outlook for the industry as a whole is improving including for small institutions.
In its quarterly update, the FDIC reported that banks had combined earnings of $21.7 billion in the fourth quarter of 2010, marking their fourth profitable quarter in a row.
But statistics showed lending continued to contract, down 0.2 percent or $13.6 billion for the quarter, and Bair warned it would have to pick up for the industry to take the next step in its recovery from the 2007-2009 financial crisis.
Washington Mutual, which had $307 billion in assets when it was seized in September 2008, remains the largest bank to fail during the financial crisis. (Reporting by Richard Cowan; Editing by Carol Bishopric)
In 2010 157 banks failed following 140 failures in 2009.
The bulk of the failures increasingly have been smaller institutions, those with less than $1 billion in assets, as large banks have recovered more quickly from the 2007-2009 financial crisis.
The FDIC announced the closure on Friday of Valley Community Bank, St. Charles, Illinois, which had about $123.8 million in assets and $124.2 million in deposits as of December 31. First State Bank, Mendota, Illinois will assume the deposits and has agreed to purchase essentially all of the assets.
Banks that failed in 2010 had total assets of $92 billion, compared with $169.7 billion the previous year.
FDIC Chairman Sheila Bair has said the agency expects the number of failures to drop in 2011.
In the FDIC's most recent quarterly report, released on Feb. 23, the agency said the number of banks on the "problem list" grew to 884 from 860.
Most of these institutions will not fail but the list provides an indication of how many banks are struggling.
Earlier this week, however, Bair said the outlook for the industry as a whole is improving including for small institutions.
In its quarterly update, the FDIC reported that banks had combined earnings of $21.7 billion in the fourth quarter of 2010, marking their fourth profitable quarter in a row.
But statistics showed lending continued to contract, down 0.2 percent or $13.6 billion for the quarter, and Bair warned it would have to pick up for the industry to take the next step in its recovery from the 2007-2009 financial crisis.
Washington Mutual, which had $307 billion in assets when it was seized in September 2008, remains the largest bank to fail during the financial crisis. (Reporting by Richard Cowan; Editing by Carol Bishopric)
Marc Faber: "I Think We Are All Doomed"
Marc Faber: "I Think We Are All Doomed"
Submitted by Tyler Durden on 02/27/2011 14:31 -0500
All who enjoy hearing a meaty Marc Faber fire and brimstone sermon, that cuts through the bullshit, will be happy to know that the Gloom, Boom and Doom author conducted a 40 minute interview with the McAlvany Financial Group, which covers all the usual suspects: gold, silver, precious and industrial metals, the "crack up boom", the future of the Ponzi and capital markets in general and much more. Of course, it wouldn't be a Faber interview without the requisite soundbite: "I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it." Of course, on a long enough timeline...
Key extract from the Faber speech:
I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.
For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.
Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.
Faber on the key distinction between nominal and real, which nobody on CNBC seems to grasp yet, why gold now is cheaper than it was in 1999, and on the Dow and gold reaching parity.
In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.
That is why I am advising people to accumulate gold. Can gold have a correction? Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.
Submitted by Tyler Durden on 02/27/2011 14:31 -0500
All who enjoy hearing a meaty Marc Faber fire and brimstone sermon, that cuts through the bullshit, will be happy to know that the Gloom, Boom and Doom author conducted a 40 minute interview with the McAlvany Financial Group, which covers all the usual suspects: gold, silver, precious and industrial metals, the "crack up boom", the future of the Ponzi and capital markets in general and much more. Of course, it wouldn't be a Faber interview without the requisite soundbite: "I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it." Of course, on a long enough timeline...
Key extract from the Faber speech:
I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.
For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.
Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.
Faber on the key distinction between nominal and real, which nobody on CNBC seems to grasp yet, why gold now is cheaper than it was in 1999, and on the Dow and gold reaching parity.
In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.
That is why I am advising people to accumulate gold. Can gold have a correction? Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.
Friday, February 25, 2011
Frontrunning: February 25 new
Frontrunning: February 25 new
Submitted by Tyler Durden on 02/25/2011 08:11 -0500
•Irish Voters Set to Take Revenge on Ruling Party (FT, Bloomberg)
•Saudi youth call for protest in solidarity with Libyan uprising (Monsters and Critics)
•Wisconsin Assembly approves plan to curb unions (Reuters)
•Special report on Glencore: The biggest company you never heard of (Reuters)... actually that would be the DTCC
•US Warns Extreme Food Prices Will Stay (FT)
•Gotta love Bloomberg headlines: Fannie Mae, Freddie Mac Seek $3.1 Billion Amid Improved Earnings (Bloomberg)
•More completely expected criminal fraud out of Citigroup: What Vikram Pandit Knew, and When He Knew It (Bloomberg)
•CFTC, SEC halt criminal investigations, blame lack of money (WSJ)
•Sentance Says BOE Must Tighten Now to Prevent Tough Moves Later (Bloomberg)
•House Republicans Move to End U.S. Foreclosure Aid Criticized as Harmful (Bloomberg)
Submitted by Tyler Durden on 02/25/2011 08:11 -0500
•Irish Voters Set to Take Revenge on Ruling Party (FT, Bloomberg)
•Saudi youth call for protest in solidarity with Libyan uprising (Monsters and Critics)
•Wisconsin Assembly approves plan to curb unions (Reuters)
•Special report on Glencore: The biggest company you never heard of (Reuters)... actually that would be the DTCC
•US Warns Extreme Food Prices Will Stay (FT)
•Gotta love Bloomberg headlines: Fannie Mae, Freddie Mac Seek $3.1 Billion Amid Improved Earnings (Bloomberg)
•More completely expected criminal fraud out of Citigroup: What Vikram Pandit Knew, and When He Knew It (Bloomberg)
•CFTC, SEC halt criminal investigations, blame lack of money (WSJ)
•Sentance Says BOE Must Tighten Now to Prevent Tough Moves Later (Bloomberg)
•House Republicans Move to End U.S. Foreclosure Aid Criticized as Harmful (Bloomberg)
Thursday, February 24, 2011
Straight from the Horses Mouth Folks, USA is headed to the same situation as Greece, Ireland, Etc.
Submitted by: Francis Soyer
2/24/11
Hope can be a dangerous thing. I have noticed that when talking to now retired Baby Boomers when talking about the economy there seems to be a disconnect with reality. A belief that inspite of some minor issues in relation to current events that all is well and that our country the USA would never fall victim to such scenairos we see play out day in day out of the likes of Ireland, Greece, Spain, Portugal etc.
This hearing and testimony occured last month. I can not recall if this event attracted any media attention or not, from the looks of the guy to the left and rear of Ron Paul who looks like he may be suffering from a minor case of down syndrome and the abundance of empty chairs I am assuming the hearing attracted little to no main stream media attention. But if you pay close attention to the testimony the message is clear. The USA is next on the chopping block for the Global banking system and we are in for some major changes.
2/24/11
Hope can be a dangerous thing. I have noticed that when talking to now retired Baby Boomers when talking about the economy there seems to be a disconnect with reality. A belief that inspite of some minor issues in relation to current events that all is well and that our country the USA would never fall victim to such scenairos we see play out day in day out of the likes of Ireland, Greece, Spain, Portugal etc.
This hearing and testimony occured last month. I can not recall if this event attracted any media attention or not, from the looks of the guy to the left and rear of Ron Paul who looks like he may be suffering from a minor case of down syndrome and the abundance of empty chairs I am assuming the hearing attracted little to no main stream media attention. But if you pay close attention to the testimony the message is clear. The USA is next on the chopping block for the Global banking system and we are in for some major changes.
Gaddafi's Private Plane, Reportedly Loaded With Gold, Ready To Leave For Zimbabwe As Early As Tomorrow
Gaddafi's Private Plane, Reportedly Loaded With Gold, Ready To Leave For Zimbabwe As Early As Tomorrow
Submitted by Tyler Durden on 02/24/2011 09:38 -0500
Activist Shareholder
The latest news from the ABC.net.au should come as no surprise to those who know all too well that one can't eat gold: "Gaddafi own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe." Yet there is speculation that instead of pulling a Ben Ali, Gaddafi may pull a Hitler: "Earlier, one of Mr Gaddafi's former ministers predicted the Libyan leader will follow in Adolf Hitler's footsteps and commit suicide rather than give up power. Mustapha Abdeljalil, justice minister until he quit over the bloody crackdown on protesters, says he expects Mr Gaddafi to make good on his pledge to die on Libyan soil rather than slink into exile. "Gaddafi's time is up. He is going to go like Hitler. He is going to commit suicide," Mr Abdeljalil told Swedish media." In either case, we are skeptical that much of Libya's oil infrastructure will survive the binary outcome. As a reminder, Libya had 143.8 tonnes of gold (or Tungsten as the case may be) as of December 31, per the WGC.
More from ABC:
There are reports of gun battles taking place between forces loyal to Mr Gaddafi and his opponents in the town of Zawiyah, 50 kilometres west of Tripoli.
Mr Gaddafi no longer controls much of the east around Benghazi, where there are reports residents have jailed those they say are mercenaries and set up committees to run the city.
London-based Libyan political activist, Guma el-Gamaty, has told the ABC's Lateline that "quite reliable sources" believe Mr Gaddafi is readying to flee his country.
"Gaddifi's own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe," he said.
"We think this could happen very shortly because the Security Council is threatening to impose a no-fly zone and we think that Gaddafi will try to escape before this no-fly zone is imposed, possibly by tomorrow.
"So this is the most serious story we've heard today. It's very indicative of the fact that Gaddafi is totally isolated, surrounded more or less and is probably in a state of mind where he's just concentrating and thinking about how to escape and run away and stay alive."
A noble end?
Earlier, one of Mr Gaddafi's former ministers predicted the Libyan leader will follow in Adolf Hitler's footsteps and commit suicide rather than give up power.
Mustapha Abdeljalil, justice minister until he quit over the bloody crackdown on protesters, says he expects Mr Gaddafi to make good on his pledge to die on Libyan soil rather than slink into exile.
"Gaddafi's time is up. He is going to go like Hitler. He is going to commit suicide," Mr Abdeljalil told Swedish media.
Hitler committed suicide in his bunker in Berlin in April 1945 as he witnessed the disintegration of his Nazi empire.
Mr Mr el-Gamaty says that is "a small possibility".
"We believe that probably Gaddafi doesn't really have the courage to kill himself. We think he still have this grandiose idea that he will go to Africa and rally all the Africans," he said.
"Remember he has the title of the "King of Kings" of Africa, so he thinks he can still go to Africa and rally all the Africans around him and come back to Libya and take it over again.
"But, who knows? That is also a possibility. But whether he flees, whether he kills himself, whether he gets arrested, I think he is doomed and I think his end is very imminent."
Submitted by Tyler Durden on 02/24/2011 09:38 -0500
Activist Shareholder
The latest news from the ABC.net.au should come as no surprise to those who know all too well that one can't eat gold: "Gaddafi own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe." Yet there is speculation that instead of pulling a Ben Ali, Gaddafi may pull a Hitler: "Earlier, one of Mr Gaddafi's former ministers predicted the Libyan leader will follow in Adolf Hitler's footsteps and commit suicide rather than give up power. Mustapha Abdeljalil, justice minister until he quit over the bloody crackdown on protesters, says he expects Mr Gaddafi to make good on his pledge to die on Libyan soil rather than slink into exile. "Gaddafi's time is up. He is going to go like Hitler. He is going to commit suicide," Mr Abdeljalil told Swedish media." In either case, we are skeptical that much of Libya's oil infrastructure will survive the binary outcome. As a reminder, Libya had 143.8 tonnes of gold (or Tungsten as the case may be) as of December 31, per the WGC.
More from ABC:
There are reports of gun battles taking place between forces loyal to Mr Gaddafi and his opponents in the town of Zawiyah, 50 kilometres west of Tripoli.
Mr Gaddafi no longer controls much of the east around Benghazi, where there are reports residents have jailed those they say are mercenaries and set up committees to run the city.
London-based Libyan political activist, Guma el-Gamaty, has told the ABC's Lateline that "quite reliable sources" believe Mr Gaddafi is readying to flee his country.
"Gaddifi's own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe," he said.
"We think this could happen very shortly because the Security Council is threatening to impose a no-fly zone and we think that Gaddafi will try to escape before this no-fly zone is imposed, possibly by tomorrow.
"So this is the most serious story we've heard today. It's very indicative of the fact that Gaddafi is totally isolated, surrounded more or less and is probably in a state of mind where he's just concentrating and thinking about how to escape and run away and stay alive."
A noble end?
Earlier, one of Mr Gaddafi's former ministers predicted the Libyan leader will follow in Adolf Hitler's footsteps and commit suicide rather than give up power.
Mustapha Abdeljalil, justice minister until he quit over the bloody crackdown on protesters, says he expects Mr Gaddafi to make good on his pledge to die on Libyan soil rather than slink into exile.
"Gaddafi's time is up. He is going to go like Hitler. He is going to commit suicide," Mr Abdeljalil told Swedish media.
Hitler committed suicide in his bunker in Berlin in April 1945 as he witnessed the disintegration of his Nazi empire.
Mr Mr el-Gamaty says that is "a small possibility".
"We believe that probably Gaddafi doesn't really have the courage to kill himself. We think he still have this grandiose idea that he will go to Africa and rally all the Africans," he said.
"Remember he has the title of the "King of Kings" of Africa, so he thinks he can still go to Africa and rally all the Africans around him and come back to Libya and take it over again.
"But, who knows? That is also a possibility. But whether he flees, whether he kills himself, whether he gets arrested, I think he is doomed and I think his end is very imminent."
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