Global Articles on what is going on...posted daily

[sandi66]

Gold Bar Premiums at 17-Year High in Hong Kong – Safe Haven Bid on Inflation and Egypt Concerns





-- Posted Monday, 31 January 2011 | Share this article| Source: GoldSeek.com



The geopolitical ramifications of the revolution in Egypt and the likelihood that it will spread throughout the Middle East, North Africa and possibly further afield is leading to volatility in markets. Equity indices in the Middle East and Far East were mostly down (except for China) overnight. European bourses were under pressure this morning but have recovered somewhat.

Gold and silver are marginally lower after their strong showing Friday which resulted in silver closing the week 1.7% higher and gold being tentatively lower (-0.14%). Remarks by a People’s Bank of China advisor that the Chinese should diversify into gold and silver are very important (see below).


Gold in USD and CFTC Gold Open Interest - 2 Years (Daily)

NYMEX crude is up some 0.4% to just over $90.00 (see long term chart below) and Brent crude remains close to $100 a barrel this morning. Oil’s nearly 5% surge on Friday to end the week higher was ominous and the possibility of unrest spreading to other oil rich dictatorships such as Saudi Arabia is making investors nervous. The Middle East and North Africa produce more than a third of the world's oil and OPEC has warned of a possible oil “shortage”.


Oil in USD – 5 Years (Daily)

Any speculative froth seen when gold recently rose above $1,400/oz has been removed from the gold market as can be seen in the gold futures open interest numbers. Open interest has fallen by more than a third since early September. Those short the market have once again managed to flush out the weak paper longs who have been shaken out of positions.

Open interest levels are now well below those seen after the last period of correction and consolidation in the first quarter of 2010 (see first chart above) and we may now have seen capitulation.

Short positions remain high and concentrated with a few market players, especially JP Morgan, and they are vulnerable to a short squeeze, should prices begin to move up again. This seems likely given the tight physical demand situation in the market internationally.

Further evidence of this was seen in the fact that premiums for gold bars in Hong Kong are at their highest levels in 17 years (since 1994) as Chinese, Indian and wider Asian buying continues. Deepening inflation has led to strong demand and the geopolitical instability in Egypt and the possibility that it could spread throughout the Middle East and North Africa will lead to safe haven buying.

China Should Buy More Gold, Silver for Reserves – Chinese Central Bank Advisor
People's Bank of China adviser Xia Bin told the Economic Information Daily today that China should steadily increase its holdings of gold, silver and other precious metals. In an interview with the paper Xia said that “holdings of gold and silver can help establish the yuan as an international currency by increasing China's "final payment capacity." He advised buying precious metals on the dips and while gold and silver are marginally lower today, the remarks are another long term positive for the gold market.

Only last month, Xia made similar comments saying that the People’s Bank of China should diversify their massive $2.7 trillion foreign exchange reserves away from US dollars and increase their gold reserves as a long term strategy in order to help internationalise the yuan. The Chinese wish to make the yuan an accepted international reserve currency and establish it as a currency that will be used for payment and settlement in international trade.

China’s gold holdings, at 1,054 tonnes, remain miniscule compared to the over 8,000 tonnes held by the US Federal Reserve (gold only accounts for 1.6 percent of China’s massive currency reserves). With the supply and demand equation already tight due to international investment demand and central banks having become net buyers rather than net sellers, even a small amount of diversification out of their US dollar holdings and into gold should lead to much higher gold prices.

The reference to silver was important as it marks the first time in modern times that a central bank advisor or official has spoken about diversifying currency reserves into silver. It shows how the Chinese view silver as money rather than as simply a commodity to be consumed. Indeed, the Chinese like most of the world, used silver as currency for most of their history.

The comments may signal the start of a growing shift from seeing silver purely as an industrial commodity to seeing silver more like gold – as both an industrial commodity but more importantly as a store of value and as money. As Milton Friedman pointed out, the major monetary metal throughout history was silver, rather than gold.

GOLD
Gold is trading at $1,326.87/oz, €970.57/oz and £835.14/oz.

SILVER
Silver is trading at $27.71/oz, €20.27/oz and £17.44/oz.

PLATINUM GROUP METALS
Platinum is trading at $1,782.00/oz, palladium at $803.50/oz and rhodium at $2,450/oz.

NEWS
(Bloomberg) -- China Should Buy More Gold, Silver for Reserves, Daily Reports
China should increase its gold and silver reserves, the Economic Information Daily reported today, citing an interview with central bank adviser Xia Bin.

Increasing gold reserves at the “appropriate time” is in line with the strategy of internationalizing the yuan, the report cited Xia as saying. “Related departments” should employ a “buy in the dip” strategy over a very long period of time, Xia said.

Bullion soared nearly 30 percent in 2010, advancing for the 10th year, as the dollar dropped and investors sought a store of value amid currency debasement. China is allowing greater use of its currency for cross-border transactions, seeking to reduce reliance on the dollar.

The report is “a positive factor for gold prices in the mid-and-long term,” Hwang Il Doo, a senior trader at Seoul- based Korea Exchange Bank Futures Co., said today. Still “it didn’t have immediate impact on prices as gold’s gain has more to do with the unrest in Egypt at the moment.”

Total gold consumption in China, the second-largest buyer, may gain 15 percent in the first half, fueled by growing demand for alternative investments and a hedge against inflation, the China Gold Association said last week.

Imports of gold by China jumped almost fivefold in the first 10 months of last year from the entire amount shipped in 2009, the Shanghai Gold Exchange has said. Shipments were 209 metric tons compared with 45 tons for all of 2009, said exchange Chairman Shen Xiangrong.

The country increased gold reserves by 454 tons to 1,054 tons since 2003, the State Administration of Foreign Exchange said in April 2009. The metal only accounts for 1.6 percent of the nation’s reserves held by the People’s Bank of China, according to the World Gold Council. China doesn’t regularly publish gold-trade figures and rarely comments on its reserves.

Immediate-delivery bullion gained as much as 0.7 percent to $1,346.27 an ounce, and was at $1,339.25 at 12:53 p.m. in Seoul. The price rose 2.5 percent on Jan. 28, the biggest intraday increase since Nov. 4 as escalating tensions in Egypt fanned concern that unrest may spread to other parts of the Middle East, increasing demand for an investment haven.

(Reuters) -- Gold premiums highest since 2004; India, China stock up
Premiums for gold bars were at their strongest level since at least 2004 on Monday on tight supply, short covering before the festive season in India and China as well as physical buying driven by the deadly protests in Egypt, dealers said on Monday.

Gold bars were quoted at a premium of $4 an ounce to the spot London prices in Hong Kong, its highest level since Reuters began compiling the data in 2004, up from $3 last week. .

Physical dealers have seen a pick up in demand in recent weeks ahead of the Lunar New Year later this week and the wedding season in India in February, although any increase in cash gold prices also triggered selling from speculators.

There's a lot of interest from India, but it's just that we can't meet their demand. Everybody is snatching the available stocks," said a dealer in Singapore. "We are seeing some light selling from Thailand, but there's also buying at lower levels."

Spot gold fell $4.45 to $1,333.85 an ounce on Monday, having posted its biggest gain in eight weeks on Friday on buying related to fears the deadly chaos in Egypt could spread throughout the Middle East.

Gold should build on last year's stellar gains in 2011 to hit record highs, boosted by low interest rates, dollar weakness and lingering worry over growth in major economies, a Reuters poll showed.

Premiums for gold bars in Singapore remained firm at $3 an ounce, also their highest since at least 2004, partly driven by demand from top consumer India ahead of the wedding season, when parents give gold jewellery to their daughters.

India's January gold imports are seen rising on softer prices and as food inflation boosts farm incomes, fuelling demand for the precious metal, a poll showed.

"My clients offered to buy gold bars at $5 premium, but I have no gold. Nowadays, gold is booked and sold even before they leave the refinery," said another dealer in Singapore.

"There's some selling back in the gold market, but the premiums are still high. I do see light selling by the Thais too, but one consumer just called to sell me back the gold in transit."

WEEK AHEAD
Looking ahead, dealers expected steady purchases from India before the wedding season, while some consumers in Hong Kong could be stocking while waiting for the market in China to reopen after the Lunar New Year.

"I think people will keep on hand, just in case the problems in Egypt can't be solved, and then gold prices will go up," said a dealer in Hong Kong.

Egyptian protesters were camped out in central Cairo on Monday and vowed to stay until they had toppled President Hosni Mubarak, whose fate appeared to hang on the military as pressure mounted from the street and abroad.

(Bloomberg) -- Gold Bulls ‘Not Scared’ as 150-Day Holds: Technical Analysis
Gold may rebound from its worst start to a year since 1997 and surge 21 percent to a record by the end of June after staying above its 150-day moving average, according to technical analysis by the Hightower Report.

Gold in New York rose 1.7 percent today, the biggest gain since Nov. 4. Earlier, the price dropped to $1,309.10 an ounce, the lowest since Oct. 1. The 150-day moving average is currently about $1,306. Today’s bounce is a sign that prices are poised to rally, said David Hightower, the president of the research firm based in Chicago. The metal may climb to $1,630 by the end of June, he said.

Prices rebounded from the 150-day moving average three other times in the past year, data compiled by Bloomberg show. The last time gold traded near the average was in late July. Since Aug. 1, prices have advanced 13 percent. They touched a record $1,432.50 on Dec. 7. The metal has not fallen below the average since January 2009.

“People take these longer moving averages as a key measure of confidence,” said Hightower, who correctly forecast that gold would rally above $1,400 last year. “Gold has respected the 150-day average in the past. By repelling from that level, it suggests that gold has value, and that the bull camp was not scared and forced out of their positions.”

Egypt Unrest
Prices jumped today as escalating political unrest in Egypt boosted demand for the precious metal as a haven. Tens of thousands of marchers chanted “liberty” and “change” as rallies began today at points across Cairo in the biggest challenge to Egyptian President Hosni Mubarak’s 30-year rule.

Hedge funds and other money managers have trimmed bets on gold’s rally for four straight weeks. Net-long positions, or wagers or rising prices, have tumbled 24 percent in January to the lowest level since May 2009.

Gold has slumped 5.6 percent this month, heading for the biggest January drop since 1997, as accelerating U.S. growth and rising company profits curbed demand from investors who buy precious metals as protection from financial turmoil. The U.S. economy expanded at a 2.9 percent annual rate in 2010, the most in five years, Commerce Department data showed today.

The metal’s decline this month is “a healthy break,” Hightower said. “Gold has cleaned up its act and washed out the weak hands.”

Gold prices have rallied for 10 straight years as a sliding dollar and record low U.S. interest rates boosted demand. Investors have snapped up the metal, sending global holdings in exchange-traded products backed by bullion to a record 2,114.6 metric tons in late December. Money managers including John Paulson’s Paulson & Co. and George Soros’s Soros Fund Management LLC have invested in gold through ETPs.

(Bloomberg) -- Gold Traders Trim Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators decreased their net-long position in New York gold futures in the week ended Jan. 25, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 160,589 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 4,404 contracts, or 3 percent, from a week earlier.

Gold futures fell this week, dropping 0.1 percent to $1,341.70 a troy ounce at today's close.

Miners, producers, jewelers and other commercial users were net-short 197,483 contracts, down 8,988 contracts, or 4 percent, from the previous week. Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

The J.P. Morgan View: Commodities are showing off their diversification value
• Economics –– Our Japan growth forecast is raised, but the UK is cut. Our global growth forecast for 2011 is unchanged at 3.5%.

• Asset allocation –– Our top performers for 2011 should be equities and high-yield. But do include commodities on tight supplies and their good diversification value against certain inflation and political risks.

• Fixed Income –– We go short duration in Treasuries, with yields near the bottom of their recent range.

• Equities –– Rising geopolitical and inflation risks favours an OW in Commodity sectors and an UW in EM equities.

• Credit –– Overweight high quality CMBS as property prices recover and vacancy rates decline

• FX –– Be long EUR/USD, and short GBP versus EUR, SEK and CAD.

• Commodities –– OPEC likely to increase production gradually from here, but we still expect Brent to break well over $100 this year.

(Bloomberg) -- Morgan Stanley Says Gold, Silver Will Benefit From Inflation
Gold and silver will benefit over the next 12 months “on solid investment demand in the face of rising fears of inflation,” Morgan Stanley said in a report.

(Bloomberg) -- Gold Rises After Egypt Tensions Drive Increased Demand for Haven
Gold for immediate delivery rallied 0.4 percent to $1,342.68 an ounce at 10:08 a.m. Melbourne time after advancing on Jan. 28 on demand for a haven amid escalating tensions in Egypt.

www.goldcore.com/

news.goldseek.com/GoldSeek/1296482400.php

[sandi66]

POST:

* SUMMARY: Rumor from Buckeye
January 31, 2011 12:09 pm · Posted in CHATS & POSTS (Iraqi Dinar Info) · Comments Off
1-31-11 Rumor from Buckeye
Highlights/Thoughts

1. Major work has been done in getting the global settlements and prosperity program paid this week and also have the RV happen ASAP
2. Hearing no later than Wednesday or Thursday
3. Buckeye received a call from his source (high placed government official) who told him that Allawi, Maliki, and Talabani had a meeting yesterday
4. Maliki and Allawi settled their differences
5. They signed off on the RV yesterday
6. Shabibi was ordered to a Parliament meeting today
7. We are 48 hours from the oil production (referring to the Kurd’s oil flowing on 2/2)
8. RV must happen before the oil from the Kurds starts flowing

*******************************************************************************
Chat from Buckeye…Major work has been done in getting GS and PP paid this week and also to have an RV happen ASAP. Hearing no later than Wed. or Thursday.

[BUCKEYE] I just got off the phone an hour ago with my sorces (very accurate)…..got call from a high placed gov’t official
[BUCKEYE] explained that maliki ….allawi….telebanni…had a meeting together yesterday M and A have settled their differences
[BUCKEYE] signed off on RV yesterday Shabibi ordered to Parliment meetingf today we are 48 hrs. oil production goes into affect on Feb 2.. has to happen before then This source is very very good…but not bulletproof IMO with everything going on in middle east with Egypt

theiraqidinar.com/category/chats-posts/

[sandi66]

Jan 31 Dinar CC Announcement



THE BH GROUP WEEKLY DINAR CONFERENCE CALL TONIGHT!

MONDAY, January 31st with SPECIAL GUEST, Rudy Coenen, former Currency Specialist with JPMorgan.

The Middle East is a "tinder box".....what's next!
We pre-record the call early Monday evening and then email the link out to all The BH Group Members between 8:00 - 9:00 PM EST, Monday, January 31st, 2011 so you can listen right from your computer anytime there after for one week!

If you don't have access to a computer and would like to listen to a pre-recorded version, it'll be available Tonight (after 9pm EST) at: 712-432-1085 PIN 7864822# until Wednesday, February 2nd at 9:00pm EST. **Please note there is a maximum of 100 people at a time that can join the recorded call so you may have to try accessing the call at different times throughout the day.

We now have over 10,000 members sharing this link. This new format makes sense and will be clearer and more convenient. It allows Veteran Dinar holders to bypass Dinar 101, if they wish and go right to the INTEL updates. However, I encourage EVERYONE to listen to the weekly changes and remind you WHY you invested in the first place!

I encourage you to forward the "link" to Friends and Family so they can get up to speed QUICKLY through our Dinar 101 Segment about this exciting Investment Opportunity regarding the Revaluation of the Iraqi Dinar!

Imagine NOT telling people you care about once YOU know! We believe "THE BLESSING" is imminent! We'll continue to sell Dinar until the ReValuation happens!

The BH Group has Dinars in stock - shipping SAME DAY! Competitive Prices!
Orders over $5,000 call for special quotation PH: 419-740-5220

Sincerely,
The BH Group

[sandi66]

news.goldseek.com/GoldenJackass/1296075600.php


China Plays Europe Card: Jim Willie, CB


GoldSeek.com
JANUARY 28, 2011







Whether Americans and Westerners in general like it or not, the Chinese have become and will remain the key drivers to many economic and financial market developments, progress, and averted wreckage. The intrepid lapdog US press, loyal to the syndicate, is a critical element to maintain distractions. Of course, China must adapt and react to their own stumbles and accidents, assured since for years they have maintained a tight link in monetary policy. Doing so has linked their asset bubble expansion and bust cycle to the deadly one in the United States, and filled their coffers with US$-denominated toxic debt securities. However, China has three advantages over the US that stand out. They have $2.65 trillion in savings, rainy day money in a war chest. They have a vast industrial base, courtesy of the US, the West, and Japan, which donated the technology for the fabled disastrous low-cost solution. They have an expanding middle class. Neither the US, the UK, nor Western Europe has anything remotely similar to these three benefit allowances. It is slowly becoming clear that the US granted the Most Favored Nation status to China in return for massive gold & silver swaps to the USGovt. The Wall Street fraud kings illicitly sold the leased bullion into the market, to sustain the American fiat paper congame, and thus a betrayal to the Chinese.

The Beijing leaders are highly motivated to unseat the Anglo bankers from their perched throne, emboldened by vengeance. The betrayal was to the American people also, since waves of jobs went to China from US shores, since the US sold not only its own Fort Knox gold inventory, but Western Europe's also, then China's to boot. Those who believe the USGovt has any gold reserves at all should donate their cerebrums to science while still alive, a euthanized suicide. The USGovt in all likelihood is in possession of less than zero gold, owing both Europe and China massive amounts. It is the American ticket to the Third World, paved by lost industry, locked by vast debt, assured by broken economic principles blessed by high priest heresy. The US banking leaders still believe the US can revive itself by the flood of more debt and stronger consumer spending, without a clue of what legitimate income means or where it comes from.

Before delving deeper into this important thesis topic, a comment is in order regarding President Obama's State of the Union address and his plan. As forecasted by the Jackass on repeated past occasions, the entirety of the sacrifice to reduce the USGovt budget will come from the domestic, non-defense, non-security side. Aid to businesses and households and dedication to infrastructure will be removed. The higher priority war machine will be preserved. He called it non-security measures, implying the sacred nature of the security of the nation. Ironically, the security of the nation has been put in peril from unspeakable banker fraud, abandonment of industry, and neglect of infrastructure, not to mention the continued ignorance toward capital formation and dutiful embrace of a consumption mindset. The Obama Admin will remain committed to gutting America, undercutting the middle class, and feeding the deterioration of the USEconomy. He will assure a reduced domestic blood supply and food intake. Expect more empty talk of clean energy and jobs. The greatest potential for spending cuts are from the defense budget, for which the USGovt spends more than the rest of the world combined. A vast array of military bases, embassies place on foreign soil, and weapons projects will be preserved. The maintenance of the foreign threat will be steadfastly maintained. The ethics of drone weapons, regeneration of enemies, destabilization of governments, and the absent economic multiplier effect from defense/offense spending will all conspire to weaken the United States in ways that our leaders seem incapable of understanding. They promote the Fascist Business Model, the very same that has contributed to the wreckage of the nation. The victims are economic growth, rule of contract law, sanctity of private property, and truth. The legitimate threat to the nation comes from its internal situation and the impunity of large scale financial crimes. When reference is made to a Sputnik moment for the United States, try not to laugh. A deeply indebted nation with spiraling deficits latched at the hip to a currency besieged by monetary inflation cannot afford any grand initiative, especially when its highest national priority is war. Survival will soon escalate to a higher priority.

OVERVIEW OF THE CHINA-EUROPE CARD
The Chinese are well along a full court press to secure Gold bullion and dominate in the next phase of the global chess game that will span the next decade or more. With the expansion in the European Dollar Swap Window by the Chinese, the Euro currency has risen impressively. No benefit to Gold has been realized despite the USDollar slide in the last month. One must suspect the Chinese are busy as yellow jacket bees dumping USTreasury Bonds. But also, the Chinese might have suspended some of their Gold & Silver purchases. They might have actually drained for a time the COMEX gold inventory, and await its replenishment. Enter the BIS after midnight from the loading dock. Beijing leaders might be anticipating a high volume Gold bullion purchase flow from the back door in Europe. Refer to EuroBonds bought at discount using the Dollar Swap Window, converted eventually to Gold. My guess is the harlot Intl Monetary Fund will facilitate the Gold conversion, from the EU member nation central banks associated with PIGS nations. If inadequate supply of Gold is a problem with PIGS nations, perhaps some gold swap contracts can be enabled with the help of the Bank For Intl Settlements in Switzerland. But those swaps would seal the PIGS nation fates, since they would hand over industrial, commercial, and other collateral, assuring banker elite ownership of whatever keys to the kingdom are left. Therefore, Gold is vulnerable to hits during the time China takes its foot off the accelerator pedal. China has found a way to purchase high volumes of Gold bullion at a discount. The discount is essentially the EuroBond sovereign debt discount under distress, which might be in the 10% to 20% range. So the PIGS debt will be rescued for a while, but with forfeit of their central bank gold, or borrowed gold.

TRADE AS GEOPOLITICAL LEVER
The last several decades have revealed some sordid bilateral contracts, critical deals like what was made with the Saudis. The USGovt pledged to protect the House of Saud and their kingdom, helped along by massive USMilitary weapon sales. The Saudis in turn would demand payment for crude oil in USDollar terms exclusively. The entire Persian Gulf has toed the line on US$ oil sales ever since, even other OPEC players like Nigeria and Indonesia. A difficult balancing act has been required, and still is required, to keep the peace and minimize the friction between Arab nations and the headquarters of the multi-faceted syndicate helm that has controlled the USGovt with tight reins for nine years and four months. The USGovt prefers to enforce and sustain its global domination with heavy handed banker tactics, financial market rigging games, export of crippling acidic debt, usage of the World Bank and IMF tools, and numerous clever devious nasty methods in the shadows best not described. Lately, a chief US export has been price inflation, most evident in food prices, courtesy of the QE2 program by the USFed. In the last decade, the chief export was toxic debt securities. The Chinese have a different approach, one that might have been more prevalent in the United States half a century ago. They have made 180 trade deals across the world, the exact number exaggerated. They do not place military personnel on foreign soil. They do not lace foreign banking systems with toxic debt. They establish multi-faceted contracts that involve the build-out of port facilities, railroad lines, schools, hospitals, and community living centers. They ignore ugly government facts of life like what exist in West Africa. They operate a sophisticated guerrilla economic warfare in sharp contrast to what the US does. The Chinese build partnerships, not without some friction, while the Americans ignite violent conflicts and demand that allies take sides, while extorting bank ruin, living above their means. The source of the ignition events is kept well under wraps. The ultimate motives of the Chinese is likewise kept rather quiet.

DOLLAR SWAP WINDOW
The most important factor to bear upon the financial markets globally in the last several months, the greatest change agent, in my view, is the creation of the Dollar Swap Windows by China. They are being erected in Europe. Their focus is on the PIGS nation sovereign debt. The debt of Greece, then Portugal, finally Spain very recently, and later inexorably Italy have found and will find a major buyer in China. They will buy PIGS debt at discount. They will win favor across the continent. They will gain advantages not well publicly mentioned. They will cut off geopolitical opposition in extremely subtle manner. They will open up the pathways for greater technology transfer. They will offer a semblance of stability to the currency markets in turmoil. They will spread their global presence, if not dominance. They will work some backdoor deals with motives to secure large volumes of gold bullion at discount. They will solicit more cooperation from previously devoted Anglo tools like the Intl Monetary Fund, and perhaps turn the IMF itself into a Chinese agent. They will possibly pave the way to a mild colonization movement, perhaps having already chosen Southern Spain over Southern California. The Mexican Civil War might have frightened them off any plan to send a million Chinese to North America, equal in intensity to the realization of rising hostility and trade war with the USGovt. Somehow friction with Basque Separatists and detente with Andora versus Spain seems tame compared to roving gangs of Mexican drug lord lieutenants ready to dole out violence on US soil, whose battle lines are drawn by tribal history far more than the US press reports. The systemic failure of Mexico was forecasted in the Hat Trick Letter in the summer 2007, with timing expected for some climax events and recognition in mid-2010, a correct forecast. The USGovt has gone from assisting China in economic and industrial development to blaming them for the depleted US condition. The bigger problem is obviously the deeply entrenched domestic devotion to asset bubbles and colossal bank fraud, run in parallel with the absurd destructive consumption mindset.

HIDDEN EURO IMPACT
So the Dollar Swap Window has been constructed, with expansion a certainty. The Chinese will have an opportunity to dump a big batch of USTreasury Bonds on a regular basis. My full expectation is that the Chinese will sell far more USTBonds than they purchase PIGS nation sovereign debt. In other words, they are building a dumping ground. Key parts of the equation are that the Europeans have been promised a willing buyer (although with ulterior motive) in the Chinese for PIGS sovereign debt. The Germans are sick & tired, fed up to the gills, in supporting the Southern Europe welfare system which identifies the broken element of the faulty European Union. Its foundation had cracks from the start, more than the Jackass recognized admittedly in past years. The Europeans have been promised some important support for the embattled Euro currency. Every time the Greek crisis made the news in past months, the Euro currency sold off with gusto. No more! A strong broad plank of support for the Euro has been provided by China. They are selling their USTBonds and buying EuroBonds with PIGS brand markers. The Euro currency has risen from a January 10th low of 129 all the way to almost 137 in this month alone. The rise has occurred despite the ongoing saga of PIGS debt distress. The Portuguese sovereign debt has been shored up by Chinese promises of purchase. The Irish Govt debt is a totally different animal. They accepted and swallowed the lethal IMF poison pill, cut their budget, and seen enormous deficits spiral out of control as their economy craters. They have resorted to monetary inflation approaching Weimar style as proof of the disastrous error in decisions. Translated to US size difference terms, Ireland has expanded their Euro money supply the equivalent of the US doing so by $12 trillion, all in the space of three months on the Emerald Isle centered in Dublin. They are not keeping Dublin tidy!







The financial news reports fail to mention the China card. They fail to mention that China is exchanging USTBonds for Euros in order to purchase EuroBonds with PIGS skin labels. They fail to mention that large Chinese hands are supporting the Euro currency. My belief is that the news media does not wish to stress the expansion of Chinese influence. For a century, or perhaps three centuries, the cultural and heritage linkage between Europe and the United States has been firm and solid. A grand Chinese wedge has been inserted, not so much between Central Europe and Southern Europe as between Europe and the United States. China will be crucial in casting the Southern nations aside from the European core. They will become wards of China, even for exploit. The Dollar Swap Window constructed by China has actually isolated the USGovt in serious ways. Relief to PIGS EuroBonds is obvious. The numerous other effects are not, and those effects are not in the news. They are main elements of the Hat Trick Gold & Currency Report, and have been for several months. The expansion to Spain was a forecast made in November and December, with confirmation coming by denials in Madrid.

Something unique and unusual has happened in the last three weeks. The Euro currency has risen noticeably from 129 to 137, but the Gold price has fallen from $1385 to $1335 per ounce. For almost a full decade, the correlation between the US$ DX index and the Gold price has been in the minus 70% neighborhood. What has happened in the last month has been a gigantic outlier. It is not just significant with umpteen standard deviations above the norm. It is in the wrong direction. My best guess is that the Chinese have temporarily halted their usage of the COMEX avenue for gold acquisition. They have permitted the corrupted COMEX to push down the gold price, using its fraudulent paper mechanisms. They have given free rein for the Wall Street maestros to lower the gold price for any IMF deal to secure European gold bullion in exchange for EuroBonds. Most gold & silver contracts are settled in cash anyway these days, since the COMEX does not have much precious metal in its possession. Imagine the day coming before too many months when gold & silver can be traded in contracts at the COMEX with no gold or silver metal exchanging hands. That day is coming, along with ruin of the GLD and SLV defaults, ruin, deep discounts in share price versus the metal price, and investor lawsuits. As for the Gold & Silver price, they will rise when the Chinese decide to resume buying. Right now, their attention is diverted to EU gold bought at deep discount, and in volume. As usual, they are thinking at least 20 years ahead. The Gold & Silver price will rise soon enough for the patient minded. The physical market wrests control always, as the mid-term forces take over.

OBTAINING GERMAN TECHNOLOGY
Germany is grateful that a new benefactor has come to Southern Europe. No longer does the German Govt feel burdened by the welfare enforced by the European Union dictum. The Germans are exhausted from $300 billion in annual welfare support of a deadbeat set of children in Portugal, Italy, Greece, and Spain. Over the last ten years, the drain of German wealth has been $3 trillion in total. A German banker has kept me up to date on the details. He frequently mentions that it is not a matter of willingness for the Germans to continue to support the broken nations of Southern Europe, complete with their grand deficits and inefficient economies, and greatly different work ethic, and their preference for song and dance and wine. The Germans are NOT CAPABLE of the continued drain of $300 billion per year, since the cost has turned into a nightmare burden.

In return for the outsized Chinese relief of PIGS debt, the Germans have offered key exports in technology. The main items are machine tools, telecommunications, construction equipment, and cars. Germany is the technology leader in Europe, with no close second competitor. France is a distant second. The German Economy is not a war economy, as they possess world class technology for domestic purposes. In the early part of the last 2000 decade, the technology transfer was significant from Japan to China. It enabled a great leap for Chinese industry. In many instances, the installed Japanese technology, like with machine tools and sophisticated manufacturing floor control systems, the Chinese leapfrogged the US easily. Enter the current phase, where the Germans are working with the Chinese in major deals. My view is that the Eastern Alliance, whose participants are Germany, Russia, China, and the Persian Gulf states, has many components not easily seen. They are working on the New Nordic Euro currency, complete with a gold component, in order to establish a replacement for global banking and commerce. It could become a new global reserve currency, all in time. Expect the alliance to include commitments for vast Russian resources, vast German technology, vast Chinese bank reserves, and guarantees of vast Arab oil supply. The Dollar Swap Window is an important component to the advancement of the Eastern Alliance, in which the US and UK are not players. They are shut out.

ISOLATE USGOVT IN TRADE WAR
A significant hidden effect for the Dollar Swap Window has been the interruption of the trade war alliance encouraged and solicited by the USGovt. Evidence was clear at the most recent G-20 Meeting of finance ministers. The USGovt attempted to find wider support for hostility against China. They all fell of deaf ears. The American delegation was embarrassed, isolated, and stunned. With the Chinese acting as chief debt benefactor in Europe, with the Chinese forging Asian, Arab, South American alliances, nobody joined the adolescent US chatter to confront and combat China. The USGovt is increasingly isolated in its trade war against Beijing. The great trade war will be bilateral, with perhaps no other allies at the side of either nation. Witness the battle for global control and leadership. A great transition is in progress, as the global leader mantle passes from West to East, from the US hands to Chinese hands. The US is expert at creating enemies. As the Islamics fade in perceived threat, enter the Chinese who "stole" the US jobs and "sit on" vast hoard of money from "ill-gotten trade surpluses" in great ongoing accumulation. The ugly truth is that 60% to 65% of Chinese trade surplus from 2004 to 2008 was derived from US and Western corporations having expanded on Chinese soil with factories, fully endorsed by USGovt and Western Govts, often with direct support of ministries. The Europeans are courting the Chinese, and that is big news. China is playing the Europe card at the geopolitical table. Maybe the numerous NATO military bases will eventually fly Chinese flags and be converted to commercial supply transport usage.

The hypocrisy is thick. However, the incessant annoying shallow charges of currency manipulation ring hollow when the US Federal Reserve announced the Quantitative Easing #2. They hypocrisy was extra thick, since the USFed had heralded an end to the 0% monetary policy. The Exit Strategy was followed by monetary inflation, US style, mimicking as best they could the Weimar program 70 years ago. The hypocrisy was doubly thick since the first QE round was promised to be the only round. It was followed by QE2, as forecasted by the Jackass all last year. Expect a QE3 later this year, to rescue states and muni bonds, but only after government pension obligations are abandoned and smashed. In the process, the United States has become isolated. Numerous trade deals exclude the USGovt and USEconomy. The new perverse grand trade partners for the United States are war continuation, war expansion, and a deep embrace of the Printing Pre$$, the monetary inflation machinery. As USTreasury Bond creditors have stepped away, the USFed has entered with powerful demand from printed USDollars, all done electronically, boasted at zero cost. In my view, the cost is infinite, with broad capital destruction and economic disintegration.

BACKDOOR GOLD PURCHASE
Word is gradually leaking out that the Chinese have a powerful ulterior motive to purchase EuroBonds, not so much out of altruism, not even so much out of global expansion of influence. THE CHINESE WISH TO CONVERT DISCOUNTED EUROBONDS TO SECURE HUGE VOLUMES OF EUROPEAN GOLD. The Beijing leaders must for instance have a plan to convert a fixed percentage of EuroBonds to gold bullion, even a cut deal with European leaders and bankers, arranged carefully in advance. They wish to replace the gold bullion possibly swindled by the USGovt. Any USGovt gold leases to European nations from past years might be repaid directly to the Chinese, to close out the lease contracts. The acquisition will NOT be front page news, will NOT be discussed by European leaders, and will NOT be publicly debated. The choice for PIGS nations has been and will continue to be default on sovereign debt or to cut deals with China that buy time. Since Germany has let it be known that their credit line is cut off, China has filled the void. But Beijing leaders are crafty. They have very likely secured deals whereby the IMF harlot will facilitate huge gold bullion sales to China with the EuroBond securities. The IMF has run past cover in lease close-outs from the USGovt, complete with grand deceptions. The key to unmask the lease close-out deals is that the IMF never identified buyers. There were none often. A sale without a buyer is an end to a short trade after the passage of years in time. Without some promised conversion to gold, China would not have cut the deals. It is the quiet underpin. The common denominator in the great majority of Chinese deals forged worldwide in the last decade is the secured supply line of hard assets, like commodities. They also have a preference for port facilities. Energy supplies, mineral wealth, and foodstuffs are the main objective of the numerous Chinese trade deals, which increasingly involve establishment of currency swap facilities and conversion systems. See Brazil and Russia, which do not bother to use the USDollar in trade settlement. In the future, look for commodity deals that supply China with fresh water.

Expect this trend to increase to the point that eventually the Chinese Yuan (renminbi) is a global currency with full convertibility. Later, it might serve as global reserve currency. What gives it the edge in such a role is its rise, compared to the USDollar's decline. The next decade will see the Redback (Yuan) more and the Greenback (US$) less in banks worldwide, and in trade settlement. The extreme wild card in the entire equation is eventually colonization by the Chinese elite. If they aid in government debt purchase, then hold title to property, while providing supply lines to a wide range of consumer products (someday cars too), what would prevent them from sending 100 thousand people per year to occupy abandoned homes and empty apartment buildings held under proper title? Nothing!



ty joye

[sandi66]

US taxpayers should not pay for fixing US infrastructure, new White House chief declares

By Nathan Diebenow
Sunday, January 30th, 2011 -- 6:49 pm


American taxpayers should not foot the bill for infrastructure improvements around the country, the new White House chief of staff said recently.

“I don’t think raising the taxes on the American people right now is the way to go at this point of our economy," William M. Daley told Bob Schieffer of CBS's "Face the Nation" Sunday.

Daley, a former Wall Street executive who opposed two of President Obama's major initiatives, said that investment for US infrastructure could instead come from private sources both foreign and domestic.

"That's a creative way to move forward," he said.

Daley continued, "Reality is, as certain people in the Republican Party have said, there's no way they are going to look for revenue raising in any way, shape, or form. It obviously puts an enormous constraint on the budget and the deficit."

When asked about the Republicans' proposed $55 billion cut from the federal budget, Daley said that he has yet to see from where the cuts would come.

"Where's the beef?" he replied.

Daley noted that Obama has already called for a domestic spending freeze amounting to $400 billion over 10 years. Then-candidate Obama, however, campaigned in 2008 against a spending freeze proposal.

Earlier this month, Daley replaced interim chief of staff Pete Rouse, who in turn took over from Rahm Emanuel.

The White House will unveil its proposed federal budget in two weeks.

"We got in this hole over many years," Daley told Bob Schieffer. "No business, when they get in trouble, just cuts and has much of a business when the cycle comes back."

This video is from CBS's Face The Nation, broadcast Jan. 30, 2011, snipped via Mediaite.



ty nalmann

[sandi66]

Bank of America Gives Moynihan $9.05 Million 2010 Stock Bonus

By Hugh Son - Jan 31, 2011 5:30 PM ET

Bank of America Corp. gave Chief Executive Officer Brian T. Moynihan a $9.05 million bonus for his first year as leader of the largest U.S. lender by assets, less than the company awarded to its investment banking head.

Moynihan, 51, received the bonus in restricted stock, the Charlotte, North-Carolina based bank said today in a regulatory filing. Thomas K. Montag, who leads global banking and markets, got $14.3 million in restricted stock and $900,000 in cash awards.

Bank of America earned $6.3 billion from Montag’s division last year while the parent company was unprofitable as Moynihan took $12.4 billion in impairments at operations purchased by his predecessor, Kenneth D. Lewis. The bank’s shares “did underperform” in 2010, when they dropped 11 percent amid losses tied to repurchasing faulty mortgages from investors including Fannie Mae and Freddie Mac, Moynihan told analysts Jan. 21.

Awards for executives including Moynihan were based upon “recognition of 2010 as a unique and critical transition year,” the company said in the filing.

Moynihan’s salary was unchanged from a year earlier, when it was listed at $950,000. Montag’s 2011 salary was raised to $850,000 from $800,000.

Some rivals have been raising base salaries in response to increased pressure from regulators on bonuses. Goldman Sachs Group Inc. gave Chairman and Chief Executive Officer Lloyd Blankfein a $12.6 million stock bonus for 2010 and raised his base salary to $2 million this year from $600,000, the New York- based bank said last week in filings.

Vikram Pandit

Citigroup Inc. boosted CEO Vikram Pandit’s base salary to $1.75 million from $1 after the bank’s first profit for a year under his watch. Pandit declined a bonus for the year.

Bank of America set aside about 10 percent less for year- end compensation in its investment banking division as revenue slipped, two people with direct knowledge of the decision said last week. Employees of Montag’s unit were told their year-end payouts on Jan. 27, the people said.

Regulators including the Federal Deposit Insurance Corp., the Federal Reserve and the Securities and Exchange Commission are drafting rules on pay meant to limit practices considered risky. Soaring pay at Wall Street firms over the last three decades gave traders and managers an incentive to disregard risk, the Financial Crisis Inquiry Commission wrote in a book published last week.

www.bloomberg.com/news/2011-01-31/bank-of-america-gives-moynihan-9-05-million-2010-stock-bonus.html

[sandi66]

Judge strikes down healthcare reform law

By Tom Brown

MIAMI | Mon Jan 31, 2011 6:18pm EST

MIAMI (Reuters) - A federal judge in Florida struck down President Barack Obama's landmark healthcare overhaul as unconstitutional on Monday in the biggest legal challenge yet to federal authority to enact the law.

U.S. District Judge Roger Vinson ruled that the reform law's so-called individual mandate went too far in requiring that Americans start buying health insurance in 2014 or pay a penalty.

"Because the individual mandate is unconstitutional and not severable, the entire act must be declared void," he wrote, "This has been a difficult decision to reach and I am aware that it will have indeterminable implications."

Referring to a key provision in the Patient Protection and Affordable Care Act, Vinson sided with governors and attorneys general from 26 U.S. states, almost all of whom are Republicans, in declaring the Obama healthcare reform unconstitutional.

"Regardless of how laudable its attempts may have been to accomplish these goals in passing the act, Congress must operate within the bounds established by the Constitution," Vinson, who was appointed to the bench by Republican President Ronald Reagan, ruled.

The Obama administration said it would appeal Vinson's ruling and believed it would prevail on a highly politicized issue likely to end up at the Supreme Court.

"We strongly disagree with the court's ruling today and continue to believe -- as other federal courts have found -- that the Affordable Care Act is constitutional," Justice Department spokeswoman Tracy Schmaler said.

A White House official told reporters the administration planned to continue with implementation of the law.

"We'll continue to operate as we have previously and suspect that the states will do the same," said the senior administration official, who asked not to be named.

"Obviously this case will be appealed ... and so implementation would proceed apace ... This is not the last word by any means," the official said.

But the fact that the judge did not issue a stay of his ruling pending appeal by the government could threaten the application of many of the provisions of the healthcare law.

RULING DRAWS ATTACK, PRAISE

The plaintiffs represent more than half the U.S. states, so the Florida case has more prominence than some two dozen similar lawsuits filed in federal courts.

The healthcare overhaul enacted last year, a contentious cornerstone of Obama's presidency, aims to expand health insurance to cover millions of uninsured Americans while also curbing costs. Administration officials insist it is needed to stem huge projected increases in healthcare costs.

Two other district court judges have rejected challenges to the individual mandate. But a federal district judge in Richmond, Virginia, last month struck down that central provision of the law.

Vinson's ruling was dramatically broader and drew immediate strong reaction.

"Healthcare reform is the law of the land and, now that Americans see its benefits, a majority of them oppose Republicans' dangerous plans to repeal a law that put patients in control of their own healthcare," said Senate Democratic leader Harry Reid.

Ron Pollack, executive director of Families USA, an influential national advocacy group that pushed for the healthcare overhaul, called Vinson's decision an example of "radical judicial activism run amok."

Republican House Speaker John Boehner was among those who applauded Vinson's ruling. "Today's decision affirms the view, held by most of the states and a majority of the American people, that the federal government should not be in the business of forcing you to buy health insurance and punishing you if you don't," Boehner said in a statement.

The National Federation of Independent Business (NFIB), which says it represents small businesses across America and was a plaintiff in the lawsuit, also welcomed the ruling.

CONFLICTING RULINGS

The individual mandate is key to the law's mission of covering more than 30 million uninsured. Officials argue it is only by requiring healthy people to purchase policies that they can help pay for reforms, including a provision that individuals with pre-existing medical conditions cannot be refused coverage.

Vinson's ruling comes after the U.S. House of Representatives, with a new Republican majority, voted earlier this month to repeal the healthcare reform law. The repeal measure is unlikely to go any further as the Democratic-controlled Senate is expected to drop it.

Shares of U.S. health insurers were little changed immediately after the ruling, with UnitedHealth Group Inc and Aetna roughly flat and WellPoint Inc down 0.8 percent.

"This just adds to the conflicting nature of the rulings that we've seen so far," said Matthew Coffina, an analyst with Morningstar. "I think everyone watching the industry at this point has been expecting the Supreme Court to ultimately decide this situation."

States involved in the lawsuit were Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Louisiana, Michigan, Mississippi, Nebraska, Nevada, Pennsylvania, South Carolina, North Dakota, South Dakota, Texas, Utah, Washington, Iowa, Ohio, Kansas, Maine, Wisconsin and Wyoming.

(Additional reporting by Jeremy Pelofsky, Donna Smith and Tom Ferraro in Washington, Lewis Krauskopf in New York; Editing by Pascal Fletcher and Bill Trott)

www.reuters.com/article/2011/01/31/us-usa-healthcare-ruling-idUSTRE70U6RY20110131?pageNumber=2

[sandi66]

* The petroleum sector following establishment of new unity government
January 31, 2011 07:19 pm · Posted in NEWS (Iraq & World Currency) · Comments Off
January 31, 2011
Ayad Allawi, Iraq, Iyad Allawi, kurdistan, National government, Nouri al-Maliki, Petroleum, Prime Minister of Iraq
Energy & Natural Resources – Iraq

* Introduction
* Replacement of oil minister
* New court for foreign investment
* Export of Kurdistan petroleum
* Comment

Introduction

On December 20 2010 a new unity government was announced, whereby former Prime Minister Nouri Al Maliki maintained his position and Iyad Allawi, who won the most seats in the March 2010 election, joined in a special power-sharing deal. Unsurprisingly, the upstream petroleum industry was one of the salient issues that contributed to the almost 10-month impasse in the formation of a new government. Despite the long hiatus with no functioning government (during which time Al Maliki did not relinquish his day-to-day duties), once the new government was formed, several systemic changes occurred in quick succession.

theiraqidinar.com/2011/01/31/the-petroleum-sector-following-establishment-of-new-unity-government/

[sandi66]

ENFORCEMENT INFORMATION FOR January 31, 2011

Information concerning the civil penalties process is discussed in OFAC regulations governing the various sanctions programs and in 31 CFR part 501. On November 9, 2009, OFAC published as Appendix A to part 501 new Economic Sanctions Enforcement Guidelines. Although these new guidelines replace earlier enforcement guidelines published by OFAC, for certain matters that were in process at the time the new guidelines were published, the prior guidelines (which can be found at 68 Fed. Reg. 4422 and 71 Fed. Reg. 1971) are still applicable. Please see OFAC’s Revised Interim Policy regarding use of the prior guidelines. The Revised Interim Policy, along with the new guidelines and copies of recent final Penalty Notices, can be found on OFAC’s website at www.treasury.gov/resource-center/sanctions/Pages/legal-index.aspx

ENTITIES – 31 CFR 501.805(d)(1)(i)

Trans Pacific National Bank Settles Iranian Transactions Regulations Allegations: Trans Pacific National Bank, San Francisco, CA (“Trans Pacific”) has remitted $12,500 to settle allegations of violations of the Iranian Transactions Regulations, 31 C.F.R. part 560 (the “Regulations”) occurring on or about September 18, 2007, and on or about March 19, 2008. OFAC alleged that Trans Pacific engaged in transactions or dealings in or related to goods of Iranian origin and services for exportation to Iran, and facilitated transactions by a foreign person where the transactions by the foreign person would be prohibited by the Regulations if performed by a United States person, by initiating two separate wire transfers on behalf of an account holder for an underlying commercial transaction prohibited by the Regulations. In one instance, the wire transfer instructions referenced “Iranian material” and in the other instance the instructions referenced “Iran material.” The value of the transactions totaled $35,600. Trans Pacific did not voluntarily disclose this matter to OFAC. The base penalty amount was $50,000. The settlement amount reflects the following factors: At the time of the transactions, Trans Pacific’s filtering system was not designed to detect references to sanctions targets in the “Originator to Beneficiary Information” field, leading to both of these apparent violations; Trans Pacific has enhanced its compliance program in response to the apparent violations by requiring that the memorandum information of each wire transfer also be reviewed for OFAC sanctions references; in addition, Trans Pacific has strengthened its escalation procedures in the event of a possible OFAC sanctions reference; and Trans Pacific has not been subject to prior OFAC enforcement action and fully cooperated with OFAC’s investigation of this matter.

Aon International Energy, Inc. Settles Iranian Transactions Regulations Allegations: Aon International Energy, Inc., Houston, TX (“Aon Energy”), a subsidiary of Aon Corporation, Chicago, IL (“Aon”), has remitted $36,000 to settle allegations of violations of the Iranian Transactions Regulations, 31 C.F.R. part 560, that occurred in October 2005. OFAC alleged that Aon Energy had facilitated the placement of coverage and the payment of premiums for facultative retrocession reinsurance that reinsured construction risks associated with a petroleum project on Kharg Island in Iran. Aon Energy brokered and placed facultative retrocession reinsurance on behalf of a European
reinsurer with two European retrocessionaires. The combined premium for the two retrocession reinsurance placements was $62,883. Aon Energy did not voluntarily disclose this matter to OFAC. The settlement amount reflects OFAC’s consideration of the following General Factors: Aon Energy provides specialized insurance services resulting in transactions that were particularly harmful to the sanctions program; OFAC viewed the apparent violations as part of a pattern of reckless, but not egregious, conduct by Aon Energy in connection with these policies; Aon Energy, under the direction of its parent, Aon, took several steps to strengthen its OFAC compliance program and its existing OFAC procedures after the apparent violations; Aon Energy has not been the subject of prior OFAC penalties or other OFAC administrative actions; and Aon Energy cooperated with OFAC and also entered into a tolling agreement with OFAC which was undertaken by Aon on behalf of Aon Energy.
For more information regarding OFAC regulations, please go to: www.treasury.gov/resource-center/sanctions/Pages/legal-index.aspx

www.treasury.gov/resource-center/sanctions/CivPen/Documents/02012011.pdf

ty nalmann

[sandi66]

EU Leaders Plan Euro Pledge as Investors Bet on Debt Strategy
By James G. Neuger - Feb 1, 2011 6:00 PM ET

European leaders are preparing a pledge to stamp out the debt crisis and defend the euro, seeking to keep markets at bay until a late-March deadline to bridge differences over budget rules, rescue-loan rates and buybacks.

Germany, the biggest of the 17 euro nations, is making its assent to the expanded rescue effort conditional on tighter controls of nations’ finances that have gone unenforced since the euro’s debut in 1999, say four officials involved in the talks.

The euro climbed to a three-month high yesterday and Portugal’s bond-risk premium narrowed to a two-week low as investors bet officials would succeed in expanding their arsenal to battle the debt crisis that has raged for a year.

A Feb. 4 summit in Brussels has “got to send a signal -- it doesn’t have to come up with a complete conclusion,” said Graham Bishop, a London-based analyst and author of “The EU Fiscal Crisis.” “Markets are sufficiently aware that this is a process of some magnitude which is going to take a while to come together.”

Officially devoted to energy and innovation policies, the meeting will review the debt-crisis options and reaffirm a self- imposed March 25 target to strengthen the bailout fund, set up a permanent rescue mechanism and proclaim new rules against fiscal slippage.

“We are going to defend the euro -- there is no doubt about this,” German Chancellor Angela Merkel said Jan. 28 in Davos, Switzerland. She spoke the day after French President Nicolas Sarkozy told a Davos audience that he and Merkel “will never let the euro down -- never.”

Seeking Consensus

While direct purchases of distressed countries’ bonds will be part of the toolkit, other pieces -- such as purchases in the secondary market, debt buybacks or lower rates on aid -- have yet to fall into place, the officials said.

Buying bonds directly instead of offering bailout loans, as the fund does now, may enable struggling countries to retain access to markets and escape the stigma of dependence on rescue financing, said the people, who declined to be named because the deliberations aren’t public.

Bond purchases were the original declared purpose of the European Financial Stability Facility, which was cobbled together on a May weekend after a hastily engineered 110 billion-euro loan package for Greece failed to calm markets.

Germany scuttled that approach, retooling the EFSF to offer loans so it would have more leverage to force countries receiving aid to cut budget deficits and overhaul their economic management.

Merkel’s Positions

Plans to reinforce the 440 billion-euro fund have been driven by a German reconsideration under way since Merkel’s insistence on losses for private bondholders helped push Ireland into a bailout in November.

Cash buffers and guarantees cap EFSF lending at around 250 billion euros, depriving it of the firepower to buy back enough outstanding bonds to make a difference to the most debt-mired nations. While officials are discussing ways to get the AAA- rated fund up to its stated potential, there’s no proposal under on the table to increase its headline figure.

“The fund should have the greatest possible flexibility and the greatest possible breadth,” Spanish Economy Minister Elena Salgado told broadcaster Telecinco in Madrid yesterday.

Under what was designed as a stopgap policy in May, the European Central Bank has bought 76.5 billion euros of bonds of countries such as Greece, Ireland and Portugal to maintain a lid on their borrowing costs.

ECB Focus

As the ECB refocuses on stemming inflation, which accelerated to a two-year high of 2.4 percent in January, political leaders are looking to relieve it of the bond-market interventions that were never part of its core mission.

In a sign that the immediate pressure is off, the ECB didn’t do any buying last week, its first absence from the debt markets in three months. The euro reached $1.3836, the highest since Nov. 9. It was as low as $1.2867 on Jan. 10.

Portugal’s 10-year bond yield fell 15 basis points to 6.90 percent yesterday, trimming the extra yield over German debt to 369 basis points, the lowest since Jan. 20. Portugal and Spain have brushed aside suggestions that they will have to resort to European Union help.

Spain’s AA credit rating was affirmed yesterday by Standard & Poor’s, which said its outlook remained “negative.”

Ireland, facing elections in coming weeks after the recourse to 67.5 billion euros in aid brought down Prime Minister Brian Cowen’s government, is pressing for EU money on more affordable terms.

Ireland’s loans came at an average rate of 5.8 percent, about 300 basis points more than the EU’s cost of borrowing -- a penalty rate intended to make aid a last-ditch option.

The EU risks “falling short of market expectations and it will all start again,” said Alessandro Leipold, a former International Monetary Fund official. “It seems they really need to wait to have their backs to the wall each time -- if you have a respite, you should use it fully.”



www.bloomberg.com/news/2011-02-01/eu-leaders-plan-euro-pledge-as-investors-bet-on-crisis-fighting-strategy.html

[sandi66]

Specter of currency war rears its head at Davos
February 1, 2011



By Associated Press ,


DAVOS, Switzerland (AP) — A fight is looming between rich and poor countries over the value of the dollar and other key currencies, as governments use monetary tricks to boost their national recovery at the expense of other nations, political and business leaders warned Saturday.



Washington has been leaning hard on Beijing to allow the Chinese renminbi to rise, saying it is being kept artificially cheap to maintain China's cheap labor advantage.

At the same time the United States, Britain and others have encouraged their central banks to pump money into the system as a means of stimulating the economy.

"We are going to see the recovery of nationalism and protectionism, I think we're going to face some type of currency war," said Jose Sergio Gabrielli de Azevedo, president and CEO of Brazilian oil giant Petrobras.

"The U.S. is going to try to use weak dollar policy to help recovery in the U.S., and Brazil, India are not going to accept that and will fight back, and then we're going to see some struggle and conflicts," he said.

His words echoed concerns expressed by many participants of the World Economic Forum in Davos, Switzerland, this week, where ways to maintain the fragile global recovery — and risks to it — are being hotly debated.

Ministers for Germany and France said the euro, and the 17 countries that use it, should be not be short changed by financial markets and that any future shocks to the common currency were unlikely.

"I think the euro will be stable," German Finance Minister Wolfgang Schaeuble said.

Christine Lagarde, France's economy minister said "I think the euro zone has turned a corner. Let's not short Europe and let's not short the euro zone."

Australian Foreign Minister Kevin Rudd, responding to a Chinese participant's defense of China's currency policies, said, "A few of the rest of us would say a better approach is the appreciation of the renminbi."

Beijing has been wary of letting go control of its currency even as food prices rises are driving up inflation — a situation that has been partly blamed for spurring anti–government protests in the Middle East this week.

Rudd said the world has huge concerns about how China will deal with its inflation, and urged Beijing to "get the exchange rate right."

Concerns about where the renminbi, dollar and in particular the euro are heading were aired as more than two dozen senior officials from key economies met in Davos to discuss sending a political signal that a new global trade deal can be completed this year.

Thailand's prime minister said Saturday that failure to conclude the so–called Doha round of trade talks, which have been nearly 10 years in the making, indicated a leadership vacuum on the global stage.

"Despite what global leaders say, they are still very much dictated by domestic politics," Abhisit Vejjajiva told a panel.

Renewed talk of a deal — which some say could add billions to the world economy — has won backing from leaders and executives at the World Economic Forum this week.

German Chancellor Angela Merkel and British Prime Minister David Cameron cited it as a key test for the international community's ability to cooperate in reviving the world economy.

"We are literally meters away from the finishing line," Merkel said Friday.

Experts remain skeptical that a deal can be reached this year, mainly because China and the United States remain at loggerheads on key issues. Pushing the talks into 2012 — a U.S. presidential election year — would make a conclusion even less likely because the sensitive issue of trade would be a hard sell for politicians of any stripe.

But Pascal Lamy, head of the World Trade Organization, said the talks at Davos were "very constructive. The ministers gave a strong signal."

Johann N. Schneider–Ammann, Switzerland's economy minister, said that there was "a sense that we are in the end game and that if Doha is done, it needs to be done this year."

China's growth and worries about Europe's debts have been another focus of attention among the 2,500 business and political leaders discussing the state of the world economy this week.



topnews360.tmcnet.com/topics/associated-press/articles/2011/02/01/140308-specter-currency-war-rears-its-head-davos.htm

[sandi66]

EU Leaders to Defend the Euro

February 2, 2011 at 6:05 am

The Euro is anticipated to appreciate in the Forex market today as the EU leaders are determined to defend their currency against the European debt crisis. The authorities are in quest to keep markets at bay until the late-March deadline to reconcile differences over budget rules, rescue-loan rates and buybacks.
Further, on February 4, the EU summit will discuss about the aforesaid lines of attack to isolate the Euro from the year-long crisis. This could have been done earlier to prevent the previous depreciations, but like the cliché goes, it is better late than never. More, the upcoming meeting will re-evaluate the debt crisis options and reaffirm a self-imposed March 25 target to reinforce the bailout fund. Moreover, French President Nicolas Sarkozy stressed out in the recently held World Economic Forum in Davos that he and German Chancellor Angela Merkel will never let the Euro down.
Above this, a buy position is plausible for the Euro against the Greenback as the latter is expected to be affected by the winter storm that the US is facing right now. However, a small price level volatility is suggested because the summit is yet to happen on February 4th.

forexnewsnow.com/top-stories/eu-leaders-to-defend-the-euro

[sandi66]

Ukraine Has Never Been More Stable Than it is Today - Ukrainian President


KYIV, Ukraine, February 2, 2011 /PRNewswire/ -- "Today the level of confidence and trust of Ukraine is growing in the world. Almost all the credit agencies have upgraded Ukraine's rating today," stated Ukrainian President in his interview with The Washington Post in Davos. He also reminded that last May the Ukrainian parliament adopted the law identifying the goal of Ukraine to join the European Union.

At the World Economic Forum in Davos, Switzerland, the President of Ukraine Viktor Yanukovych had an interview with the Washington Post's senior associate editor Lally Weymouth. During the interview the President commented on the Ukraine-EU prospects, natural gas transfer, and Ukraine's relations with the US along with the country's inner policy.

When commenting on Ukraine-Russia relations, Ukrainian leader stated that rehabilitation of the relations between the two countries led to sufficient natural gas deliveries to Europe. "Those developments have led to more stability and an improved security situation in the European continent," said the President.

(The Russia-Ukraine 2009 gas conflicttook place when Russian Gazprom refused to conclude a gas supply contract for 2009 unless Ukrainian Naftohaz paid its accumulated debts for previous gas supplies. -Editor).

Speaking about political stability in the country, Viktor Yanukovych mentioned that for the last 20 years since its independence Ukraine did not implement any modernization. He considers fierce political fight to have been the reason for stagnation. However, Yanukovych stressed that in 2010 "We (current Ukrainian government. - Editor) started the judicial, criminal justice, tax, and public administrative reforms. We are trying to streamline and improve the public finance system. The government's policy is to deregulate the economy and make the climate for investors more attractive."

Answering the question on the evolution of the Ukraine-US relationship, the President described them as strategic. "On very many issues we are of the same opinion and we support each other," added Yanukovych. Ukrainian leader highlighted that all of the last year's agreements between Ukraine and the US are being successfully implemented. He particularly mentioned the high enriched uranium program, and removal and destruction of missile fuel. "We have a broad agenda between our two countries, and this broad agenda shows that relations between us are good and stable," summoned the President.



www.prnewswire.com/news-releases/ukraine-has-never-been-more-stable-than-it-is-today---ukrainian-president-115087279.html

[sandi66]

Billionaire Slim Gets Richer as Mining, Mobile Beat Gates, Buffett Returns
By Crayton Harrison -

Feb 2, 2011 12:01 AM ET

Carlos Slim’s Mexican holdings from mining to communications helped him beat Bill Gates and Warren Buffett on the stock market for the second straight year, and gains in 2011 may widen his lead atop the global wealth list.

Slim’s publicly disclosed holdings surged about 37 percent to $70 billion in 2010, with wireless carrier America Movil SAB representing $48.9 billion of that wealth, according to data compiled by Bloomberg. The 22 percent jump in Berkshire Hathaway Inc. shares wasn’t enough for Buffett to catch up, and Gates’s Microsoft Corp. fell, hurting his returns even as he spread his investments to other companies.

Mexico will be “the emerging market of 2011,” boosting Slim’s holdings, said Walter Molano, head of research at BCP Securities Inc. in Greenwich, Connecticut. Growth will come from an economic expansion in the U.S., Mexico’s top trading partner, and from investors looking for growth opportunities outside of Brazil, Russia, India and China, he said.

“Slim is in for a very good year,” Molano said in a phone interview. “With China overheating, and clearly Brazil looking like a very crowded trade, people are starting to look at Mexico as an alternative.”

Emerging markets in Latin America and Asia are in an “enviable” position for growth, with rising consumer demand and low interest rates, Slim, 71, said in November. America Movil shares rose 15 percent in 2010 as the number of Latin American mobile-phone owners neared 100 percent of the population.

Mexico Focus

Slim’s best-performing asset last year was one of his oldest, holding company Grupo Carso SAB, which almost doubled as it prepared for this year’s spinoff of its mining operations amid soaring gold and silver prices. His biggest loss came from a stake in publisher New York Times Co., which fell 21 percent.

Slim’s publicly disclosed shares in U.S. markets represented less than $500 million of his total holdings, with the rest in Mexican companies.

Investors in Latin America should focus on stocks that are exposed to Mexican domestic demand, which is increasing as local consumers have more money to spend after last year’s growth in manufacturing exports, Stephen Graham, a Goldman Sachs Group Inc. analyst in Sao Paulo, said in a research note this month. He is forecasting Mexico’s IPC index will gain 9 percent this year, about half the growth rate forecast for Brazil’s stock market index, after a 20 percent rally in 2010.

Gates’s Bets

Gates, the founder of the world’s biggest software maker, has boosted his exposure to emerging markets, with stakes in Mexican broadcaster Grupo Televisa SAB and beverage bottler Coca-Cola Femsa SAB. Even with that diversification, holdings publicly disclosed by Gates, 55, amounted to about $26 billion at the end of 2010, down more than 8 percent from 2009. Holdings in Microsoft represented $16.7 billion of the total, after Gates reduced his stake in the company by 80 million shares.

Arturo Elias, a spokesman for Slim, said the Mexican billionaire’s comments in a news conference this week addressed his plans for the year. Slim said he would spend $3.66 billion this year on Mexican telecommunications, mining and infrastructure projects. America Movil is spending $8 billion a year through 2014 to prepare for growth in the demand it anticipates for data services such as Internet access and video.

Michael Larson, who manages Cascade and the Bill & Melinda Gates Foundation’s investments, didn’t return two phone messages seeking comment. Buffett didn’t respond to a request for comment e-mailed to his assistant, Carrie Kizer.

Buffett’s Holdings

The data compiled by Bloomberg didn’t include the money the billionaires have given to charities, including the Gates foundation. Forbes magazine, which in October named Gates the richest person in the U.S. with a $54 billion fortune, said 70 percent of that amount is held in his Cascade Investment LLC fund. That fund has only disclosed $5.8 billion in holdings on the stock market, an amount that was included in the Bloomberg calculation of Gates’s holdings.

Buffett’s holdings were calculated from his shares of Berkshire Hathaway, his investment company that holds stakes in Wells Fargo & Co. and Coca-Cola Co. Berkshire’s A shares gained 21 percent last year and its B shares rose 22 percent. Buffett holds both classes.

Part of Slim’s success last year came simply because his holdings are mostly in Mexico, a country where investing is riskier than in the U.S., said Gerald Martin, a finance professor at American University’s Kogod School of Business in Washington. If the comparison between Slim and Buffett’s stock performance last year were adjusted for risk, Buffett may have come out ahead, he said.

Less Movement

“In good times Berkshire won’t go up as much, and in bad times it won’t go down as much either,” he said. “For a stock that doesn’t move much, a 22 percent return is great.”

Slim’s performance last year would have beat those of Buffett and Gates even if the U.S. billionaires hadn’t sold off shares of their companies. Buffett, 80, gave $1.6 billion in shares to the Gates Foundation in July as part of his plan to donate 99 percent of his wealth in installments.

Thanks in part to donations from Buffett and Gates, the Gates Foundation had $15.4 billion in stock-market holdings at the end of 2010, more than double the previous year’s total. The organization’s biggest gainers included Caterpillar Inc., AutoNation Inc. and U.S.-listed shares of Slim’s America Movil. Berkshire Hathaway is the foundation’s largest holding.

‘Enormous’ Power

Gates unloaded 80 million Microsoft shares as part of his diversification of his investments in other companies through Cascade Investment. Among his most successful investments last year were Strategic Hotels & Resorts Inc., whose shares almost tripled, and AutoNation, which gained 47 percent. Microsoft was one of his worst performers, dropping 8.4 percent in 2010.

While Slim’s Telefonos de Mexico SAB, the state-owned monopoly he acquired in 1990, was his second-worst investment in 2010, the carrier’s 2001 spinoff America Movil continued to be his most important success. The company began as a Mexican carrier in the early days of the mobile-phone business and, through acquisitions, became Latin America’s largest wireless company and Mexico’s biggest publicly traded firm.

Slim and Gates became wealthy through similar bets in new technologies, and were helped by their dominant market positions, said Thomas Russo, who manages about $4 billion at Gardner Russo & Gardner in Lancaster, Pennsylvania.

“They basically had the privilege of owning a monopoly with enormous pricing power in markets that grew,” Russo said. “The consumer-PC business fueled Microsoft’s wealth, and the rollout of telephone services Carlos has been able to control over decades.”

Self-Made Billionaire

The son of a Lebanese immigrant who ran a dry-goods store in downtown Mexico City, Slim built his fortune by buying real estate and assets such as a bottling company and a cigarette maker during periods of economic crisis in Mexico. His move to take control of Telmex in a 1990 privatization sale helped catapult him into the ranks of the world’s richest people.

Forbes named him the wealthiest person in the world last year, followed by Gates and Buffett.

Slim and his family control 42 percent of America Movil’s shares. They hold a stake of 79 percent in Grupo Carso and 55 percent in Grupo Financiero Inbursa SAB, a financial services company that has tripled its branches since the end of 2008.

While America Movil is based in Mexico, Slim has exposure to other countries in the region, said Molano of BCP. America Movil gets about 65 percent of its revenue from Mexico, with the rest coming from other countries in the region including Brazil, the U.S. and Colombia.

Mining, Luxury Goods

Slim’s best-performing and biggest foreign holding was Saks Inc., the luxury retailer that gained 64 percent last year. Slim’s investment vehicle Inmobiliaria Carso holds a 16 percent stake in Saks. Inmobiliaria Carso has 6.9 percent of the class A shares of Slim’s worst performer, New York Times, plus options to increase that stake to 16 percent.

Carso’s mining spinoff Minera Frisco SAB made its debut on Mexico’s stock market on Jan. 6 and has gained 80 percent since as investors snapped up a new way to gain exposure to the country’s precious metal production.

“As commodities continue to perform well, people are going to start digging into the incredibly rich veins of metals sitting right below the surface in Mexico,” Molano said.

www.bloomberg.com/news/2011-02-02/billionaire-slim-gets-richer-as-mining-mobile-beat-gates-buffett-returns.html

[sandi66]

PR tops 2010 failed bank list by total assets
By CB Online Staff

[e-mail]



Puerto Rico led the way in total assets of failed banks in a busy year for regulators, who shuttered 157 institutions with total assets of $97 billion around the United States and its territories in 2010.

Nationwide, more banks failed in 2010 than any year since the savings-and-loan crisis of the early 1990s. There were 140 bank failures with total assets of $169.7 billion in 2009. Since 2008, 322 banks have failed with combined assets of $633.7 billion and total cost to the Federal Deposit Insurance Corp. (FDIC) of $79.5 billion.
The FDIC seized three Puerto Rico banks in 2010, all on the same day in April, with combined total assets of $20.4 billion.

After several years of speculation and rumbling among bank executives, financial analysts and industry insiders about a consolidation of the island banking industry, the planets finally aligned April 30.

Through the FDIC-assisted transaction, Banco Popular de Puerto Rico agreed to acquire the deposits and about $9.4 billion of Westernbank’s assets, Scotiabank de Puerto Rico agreed to buy all the assets and deposits of R-G Premier Bank, and Oriental Bank & Trust acquired all the assets and deposits of Eurobank.

The banking-industry consolidation that wiped out three of the 10 local financial institutions was the top story of the local banking sector in 2010. Puerto Rico Financial Institutions Commissioner Alfredo Padilla, the local bank regulator, labeled it a “historic event.”

The Westerbank failure was the biggest in the U.S. in 2010.

Westernbank’s failure cost the FDIC an estimated $3.31 billion, according to the federal agency’s Office of the Inspector General.

Financial website TheStreet.com said in its annual review of bank failure’s Friday that “the deal was a fantastic one for Popular, with the FDIC agreeing to cover 80% of losses on $8.8 billion in assets acquired from the failed bank.”

Popular was featured as one of the winners of TheStreet’s 2010 Bank Stock Awards. Three other winners of 2010 Bank Stock Awards benefited from acquisitions of failed institutions, including Oriental Financial Group, which acquired its failed competitor Eurobank.

While Banco Popular, Oriental Bank & Trust and Scotiabank were fortified by their purchase of the assets of Westernbank, Eurobank and R-G Premier Bank, respectively, players that missed out on the FDIC-induced opportunities, such as FirstBank and Doral Bank, were left looking at other options.

First BanCorp, the parent company of FirstBank, which is under orders from federal regulators to shore up its capital, rejected a nearly $96 million unsolicited acquisition proposal received from Doral Financial early this month.

The four leading states for bank failures during 2010 were the same as 2009, although Florida moved into the lead with 29 bank and thrift closures, followed by Georgia with 21, Illinois with 16 and California with 12 failures, according to TheStreet.com.

The number of banks on the FDIC’s “problem” list grew over the summer, even as the industry posted solid net income and fewer loans soured.

The number of troubled banks rose to 860 in the July-September quarter from 829 in the previous quarter. That’s the most since 1993, during the savings and loan crisis.

The FDIC insures deposits for banks that pay premiums to the agency and uses that money to cover the cost of dealing with troubled banks when they fail. The FDIC asked banks to pay three years of premiums at the beginning of 2010 to help pay for the expected onslaught of failures this year, the Wall Street Journal reported.

” TheStreet.com said.

The FDIC’s board of directors has approved a $4 billion operating budget for 2011, down slightly from the 2010 budget, as the agency “had met the challenge to find savings to offset a portion of the additional resources needed to carry out new responsibilities under the Dodd-Frank Act.”

FDIC Chairwoman Sheila Bair said the agency’s operating budget “doesn’t in any way involve the use of taxpayer funds,” since the budget is fully funded by deposit insurance premiums paid by banks and thrifts. The agency’s board authorized a staffing level of 9,252 employees for 2011, an increase of about 2.5% from 2010.

[sandi66]

Fed passes China in Treasury holdings

By Michael Mackenzie in New York

Published: February 2 2011 00:01 | Last updated: February 2 2011 00:01

The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.

Based on weekly data released on Thursday, the New York Fed’s holdings of Treasuries in its System Open Market Account, known as Soma, total $1,108bn, made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips.

According to the most recent US Treasury data on foreign holders of US government paper, China holds $896bn and Japan owns $877bn.

“By June [the Fed] will have accumulated some $1,600bn of Treasury securities, likely to be in the vicinity of China and Japan’s combined holdings,” said Richard Gilhooly, a strategist at TD Securities. “The New York Fed surpassed China in the past month as the largest holder of US Treasury securities,” he noted.

The Fed is buying Treasury debt under two programmes. The largest is QE2, which began in November and is scheduled to involve $600bn of purchases by June.

It is also buying $30bn of Treasuries a month as it reinvests principal payments from its large holdings of mortgage debt and debt issued by government housing agencies – a programme dubbed QE lite.

By the end of June, the Fed plans to buy $800bn in Treasury debt under both programmes. Since November, the Fed has purchased $284bn of Treasuries.

The Fed has devoted 67 per cent of its QE2 purchases to Treasuries with a maturity of four-and-a-half to 10 years. That has helped pull back yields in that part of the yield curve from their highs of December.

By contrast, just 5 per cent of the Fed’s buying has been for Treasury debt longer than 17 years. Last Friday, the yield on 30-year bonds briefly rose to its highest level since last April.

“The end of QE2 will be a big test as rates are likely to rise once the Fed stops buying large amounts of Treasuries,” said David Ader, a strategist at CRT Capital. “We don’t know if that means a rise of 20, 30 or even 50 basis points for key yields.”

In total, foreign central banks hold $2,604bn of Treasuries, according to the Fed. After rising from $2,250bn at the end of last June, foreign central banks have stayed at about $2,600bn since mid-November, when the Fed began QE2. This indicates the Fed has stepped up as other central banks have scaled back their Treasuries purchases.

Before the financial crisis, the Fed held $775bn of Treasuries in Soma. That was reduced by $300bn during the first half of 2008, when the Fed sold Treasuries and focused on supporting the financial system. The first QE program, which began in 2009, saw the Fed buy $300bn of Treasuries.

www.ft.com/cms/s/0/120372fc-2e48-11e0-8733-00144feabdc0.html?ftcamp=rss#axzz1Co5ee2A9

[sandi66]

U.S. Supreme Court Issues Landmark Decision: Constitution is Void

Posted by USAHM News on January 24, 2011

PRNewswire-USNewswire

The U.S. Supreme Court issued a landmark decision that serves to allow judges to void the Constitution in their courtrooms. The decision was issued on January 18, 2011, and the Court did not even explain the decision (Docket No. 10-632, 10-633, and 10-690). One word decisions: DENIED.

Presented with this information and massive proof that was not contested in any manner by the accused judges, at least six of the justices voted to deny the petitions:

“There is no legal or factual basis whatsoever for the decisions of the lower courts in this matter. These rulings were issued for corrupt reasons. Many of the judges in the Northern District of Georgia and the Eleventh Circuit are corrupt and violate laws and rules, as they have done in this case. The Supreme Court must recognize this Petition as one of the most serious matters ever presented to this Court.”

The key questions answered negatively by the U.S. Supreme Court was:

“Whether federal courts must be stopped from operating corruptly and ignoring all laws, rules, and facts.”

usahitman.com/u-s-supreme-court-issues-landmark-decision-constitution-is-void/

[sandi66]

Treasury Resets Debt-Ceiling Deadline



BY JEFFREY SPARSHOTT AND JEFF BATER
WASHINGTON—Citing better-than-expected tax receipts, the U.S. Treasury Department on Wednesday extended its estimate of when the country hits the debt ceiling to somewhere between April 5 to May 31.

The new deadline came as part of the Treasury's quarterly refinancing announcement. Treasury Secretary Timothy Geithner on Jan. 6 told lawmakers the U.S. could reach the congressionally imposed debt limit of nearly $14.3 trillion as early as March 31 and probably no later than May 16.

The new dates range from April 5 to May 31, with the possibility of extending that by up to eight weeks if the Treasury takes ...

online.wsj.com/article/SB10001424052748703960804576119961406022064.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop

[sandi66]

FEBRUARY 2, 2011, 4:09 P.M. ET

Ron Paul Embarks On Campaign Against Federal Reserve

WASHINGTON (Dow Jones)--Rep. Ron Paul (R., Texas) will chair a hearing Feb. 9 on the impact of the Federal Reserve's policies on unemployment, as the long-time Fed critic embarks on his campaign against the U.S. central bank.

"Despite enormous amounts of monetary and credit expansion by the Federal Reserve in recent years, the nation's unemployment picture remains bleak," said Paul, who was named to chair the subcommittee on monetary policy after Republicans regained control of the House.

Since the Fed announced a plan to buy $600 billion in government bonds to lift the economy, senior Republicans have attacked the move, saying it could bring runaway inflation. Several lawmakers have proposed narrowing the Fed's mandate to price stability, eliminating the employment part.

Fed Chairman Ben Bernanke has staunchly defended the bond purchases, saying they were needed to kick-start a weak recovery and prevent deflation. With prices so low, Fed officials say they would have taken the step even if their only mandate had been price stability.

Paul, author of a book entitled "End the Fed," is expected to spearhead the onslaught by some Republicans against the central bank. Last week, he re-introduced legislation to deepen audits on the Fed, after an attempt to scrutinize the Fed's interest-rate decisions failed last year. His son, Sen. Rand Paul (R., Ky.), put forward similar legislation in the upper chamber after joining the Senate as a freshman lawmaker in January.

online.wsj.com/article/BT-CO-20110202-715057.html

[sandi66]

Federal Reserve analyst questioned Wachovia's Golden West deal

By Rick Rothacker
[e-mail]

Posted: Wednesday, Feb. 02, 2011

Weeks after Wachovia Corp.'s near failure, a Federal Reserve analyst questioned whether the regulator should have allowed the Charlotte bank in 2006 to buy Golden West Financial Corp., a mortgage lender that contributed to the bank's weakened financial condition.

The analyst's November 2008 case study on Wachovia's near-demise also said it wasn't clear whether the bank was either "prepared for, understood, or tried to prevent" the run on commercial deposits that accelerated as the financial crisis peaked in September 2008. The bank team analyzing the outflow was understaffed and had insufficient data, the study found.

Greg Feldberg, a senior supervisory financial analyst with the Fed in Washington, presented his findings at a bank examiner conference held in Atlanta a little more than a month after Wells Fargo & Co. agreed to buy the tottering bank. His PowerPoint presentation was cited in the Financial Crisis Inquiry Commission report issued last week, providing a window into the normally non-public thinking of examiners.

The FCIC cited the study in a section of the report that detailed Wachovia's struggles in the financial crisis and the actions that ultimately led to its sale. In general, the commission found that "regulators either failed or were late to identify the mistakes and problems of commercial banks and thrifts or did not react strongly enough when they were identified."

Senior supervisors told the commission that it was difficult to express concerns about financial institutions when they were generating record profits. Later, some said they feared taking public enforcement actions against banks out of fear of aggravating existing problems.

The study indicates regulators began to worry about Wachovia's financial condition in the second half of 2007, as a global credit crunch wreaked havoc on banks around the world. As the financial crisis took root, Wachovia's "pre-existing conditions" included the strains from purchasing the Oakland, Calif.-based seller of non-traditional mortgages, as well as exposure to souring mortgage-backed investments in its corporate and investment bank, the presentation said.

Wachovia's financial problems became more clear in April 2008 when the bank announced a $350 million first-quarter loss. The main culprit was rising losses in the bank's "Pick-A-Payment" adjustable-rate mortgage portfolio. The loans, which were a Golden West mainstay, allowed borrowers to make a minium payment that didn't always cover the interest owed, increasing the borrower's balance. Wachovia continued to originate the mortgages, which were heavily concentrated in California regions slammed by the housing market collapse.

From January to August, 2008, the bank took steps to be more transparent with investors about its problems and worked to prepare for deposit runs each time executives issued dismal quarterly earnings reports, according to the presentation. By July, the board had named former Treasury Department official Bob Steel as chief executive, replacing the ousted Ken Thompson.

That summer regulators downgraded the bank's supervisory ratings and ordered executives to take corrective actions. Investor and depositor concerns, however, ramped up in September after Lehman Brothers Holdings Inc. fell into bankruptcy and Seattle-based lender Washington Mutual Inc. failed. By Oct. 3, Wells Fargo had agreed to buy Wachovia, trumping an earlier deal by Citigroup Inc.

In the "lessons learned" section of the presentation, Feldberg said Wachovia did some things right, including taking steps to attract deposits in the summer of 2008 by promoting certificates of deposit with attractive interest rates. The bank also issued earnings releases that were "significantly more transparent about credit problems" than previous ones and peer banks.

But the study also detailed the bank's problems monitoring its deposit exodus. Wachovia had trouble reconciling reports from different sources, and two-day-old data made it "difficult to track most important liquidity drains," the study found.

It also took Wachovia "too long" to admit its decline in deposits was specific to the bank, according to the presentation. "Declines were blamed on weekly fluctuations, on monthly tax day, on a never-quantified large withdrawal from the World Bank," the 30-page PowerPoint deck said.

In examining the role of regulators, the study asked how effective the Fed was in helping Wachovia, whether it had the right information and "under what grounds could regulators have blocked the Golden West purchase," adding the Fed should question "top-of-the-market acquisitions." The central bank approved the $25.5 billion deal in the fall of 2006, as the housing market was cresting.

Among the lessons learned for the Fed, the presentation concluded "systemic risk is real," saying the Lehman bankruptcy and the failure of Washing Mutual "had real repercussions for Wachovia."

Wells Fargo spokeswoman Mary Eshet said the San Francisco-based bank's "risk management practices and processes" are now in place for the entire company.

"Wells Fargo had the opportunity to study in detail the liquidity issues faced by Wachovia during the financial crisis and incorporate key learnings into systems and processes," she said. "As we noted in our fourth quarter earnings report, our large, stable deposit base provides an excellent foundation for strong liquidity."

The study was presented by Feldman at a private conference for Fed examiners and represented his own views, not those of the Federal Reserve Board. Asked whether the Fed has applied any of the lessons from Wachovia's collapse, a spokeswoman pointed to remarks by Fed Chairman Ben Bernanke at an FCIC hearing in September in which he said the central bank had made "substantial changes to our supervisory framework."

The Fed is now taking a broader look across the industry to identify potential problems, Bernanke said. It's also using data analysis and modeling to look for firm vulnerabilities, centralizing more supervisory functions and communicating more frequently with senior bank executives and directors. "Where necessary," he added, "we will increase the use of formal and informal enforcement actions to ensure prompt and effective remediation of serious issues."


www.charlotteobserver.com/2011/02/02/2030823/fed-analyst-questioned-golden.html

[sandi66]

European Leaders Demand Immediate Transition Of Power In Egypt
2/3/2011 6:25 AM ET


(RTTNews) - Leaders of five major European countries have demanded immediate transition of power in Egypt.

In a joint statement addressing a defiant President Hosni Mubarak, German Chancellor Angela Merkel, British Prime Minister David Cameron, French President Nicolas Sarkozy, Spanish Prime Minister Jose Luis Zapatero and Italian Prime Minister Silvio Berlusconi said, "Only a quick and orderly transition to a broad-based government will make it possible to overcome the challenges Egypt is now facing."

They demanded that the transition process "must start now."

The leaders expressed "utmost concern at the deteriorating situation in Egypt."

Insisting on the Egyptian people's "right to peaceful assembly and full protection by the security forces," they termed attacks against journalists as "completely unacceptable."

"We condemn all those who use or encourage violence, which will only aggravate the political crisis in Egypt," the statement added.

The United States also denounced the attacks on peaceful demonstrators and journalists in Egypt.

In a statement, the State Department called on all engaged in demonstrations currently taking place in Egypt to do so peacefully.

"These attacks are not only dangerous to Egypt; they are a direct threat to the aspirations of the Egyptian people. The use of violence to intimidate the Egyptian people must stop. We strongly call for restraint," the statement added.



www.rttnews.com/Content/GeneralNews.aspx?Id=1543592&SM=1

[sandi66]

Rajaratnam Seeks `Critical' Information on Alleged Second McKinsey Tipper


... The subpoena, made public last week, seeks information about Anil Kumar and Rajat Gupta, a former senior partner at the consulting firm and an ex-Goldman Sachs Group Inc. director.

•Rajaratnam Seeks `Critical' Information on Alleged Second McKinsey Tipper


noir.bloomberg.com/apps/news?pid=20601108&sid=aiuWzZ5k9HB4



Rajaratnam Seeks `Critical' Information on Alleged Second McKinsey Tipper


By David Glovin, Patricia Hurtado and Bob Van Voris


Feb. 3 (Bloomberg) -- A lawyer for Raj Rajaratnam said information about a second former partner at McKinsey & Co. who allegedly leaked secret inside stock tips to the Galleon Group LLC co-founder is “critical” to his defense.

Lawyers for Rajaratnam, who goes on trial Feb. 28 for insider trading, filed papers in Manhattan federal court in support of a subpoena served last month on McKinsey. The subpoena, made public last week, seeks information about Anil Kumar and Rajat Gupta, a former senior partner at the consulting firm and an ex-Goldman Sachs Group Inc. director.

In yesterday’s filing, John Dowd, a Rajaratnam lawyer, said information sought about Kumar, who has pleaded guilty and is cooperating with prosecutors, and “another former McKinsey partner,” who isn’t named, is “critical” to the defense.

While Dowd doesn’t mention Gupta’s identity, he writes in a portion of the brief about the second ex-McKinsey partner that the document request is “relevant in light of the government’s contention that the individual served as a ‘tipper,’ providing inside information to Mr. Rajaratnam about a number of stocks while employed at McKinsey.”

McKinsey, based in New York, has objected to Rajaratnam’s subpoena, saying it already turned over more than 16,000 pages of documents after three earlier subpoenas. The firm also has argued that some of the information is confidential.

“The case is what it is, and it has McKinsey written all over it,” Dowd wrote in his court papers, noting that his client is accused of trading “in the securities of eight different McKinsey clients.”

‘Beyond Reproach’
Ellen Davis, a spokeswoman for U.S. Attorney Preet Bharara in Manhattan, whose office is prosecuting the case, declined to comment. Gupta’s lawyer, Gary Naftalis; Jim McCarthy, a Rajaratnam spokesman; and Yolande Daeninck, a spokeswoman for McKinsey, also had no comment. Naftalis previously said Gupta’s reputation is “beyond reproach.”

Gupta hasn’t been accused of wrongdoing.

Rajaratnam, 53, is charged in what prosecutors have called the biggest U.S. crackdown on insider trading by hedge funds. More than 20 people have been accused in the case, the first to make extensive use of phone taps to detect Wall Street insider- trading. Rajaratnam denies wrongdoing.

Interviews, public records, lawsuits and regulatory filings show a 13-year history of co-investing and business collaboration between Rajaratnam and Gupta, the former worldwide head of McKinsey. As of May, Rajaratnam had a stake in a fund managed by New Silk Route NSR Partners LLC, co-founded by Gupta.

Berkshire Hathaway
Gupta was under scrutiny as of April in the U.S. probe of Galleon, according to a person familiar with the matter who declined to be identified because the matter wasn’t public. Gupta is no longer on the board of New York-based Goldman Sachs.

Rajaratnam sought to acquire secret tips about Berkshire Hathaway Inc.’s 2008 purchase of preferred shares in Goldman Sachs, prosecutors said in court papers last year. Gupta was suspected by U.S. investigators of tipping off Rajaratnam, a person with knowledge of the inquiry said in April.

Dowd hasn’t publicly detailed Rajaratnam’s defense, and it’s not clear why he wants information about the second McKinsey ex-partner.

In his filing yesterday, Dowd said he’s learned that Kumar and the second McKinsey partner ran a joint consulting business out of McKinsey’s offices, using the firm’s e-mail system.

‘Legitimate Business’
“Both individuals worked closely with Mr. Rajaratnam in connection with legitimate business ventures between 2006 and 2009,” Dowd wrote, adding that the significance of this information is spelled out in a sealed document.

“McKinsey, through Mr. Kumar and others, contracted with Galleon to provide consulting services in 2008, a critical portion of the time period at issue,” Dowd said.

In addition to wiretaps, prosecutors said they will present evidence of Rajaratnam’s insider trading from Kumar and other witnesses who are cooperating with them in exchange for leniency.

Separately yesterday, U.S. District Judge Richard Holwell, who is overseeing the case, ordered Galleon to turn over to prosecutors documents detailing the compensation paid to Rajaratnam and other Galleon employees.

The ruling increases the likelihood that jurors at the trial will hear evidence about his pay, over Dowd’s objection.

“The evidence of Mr. Rajaratnam’s overall compensation that the government intends to offer at trial goes miles beyond the trading” in the 35 stocks now at the center of the case, Dowd said.

The judge said prosecutors may further demand trading data on 16 stocks, information regarding three other Galleon employees who aren’t named in his ruling, and e-mails sent and received by Rajaratnam and others.

Jury Questions
Also yesterday, Rajaratnam’s lawyers proposed questions for Holwell to ask in jury selection, including, “How honest do you think Wall Street executives are?”

The proposal asks about juror attitudes toward Wall Street executives and technology company executives. Several questions call for “yes” or “no” answers. Among them:

“Do you feel it more likely than not that, if accused of impropriety, a Wall Street executive is probably guilty?”

“Do today’s Wall Street executives lack integrity?”

“Are today’s Wall Street executives greedy?”


The case is U.S. v. Rajaratnam, 1:09-cr-01184, U.S. District Court, Southern District of New York (Manhattan).


To contact the reporters on this story: David Glovin in New York at [e-mail]; Patricia Hurtado in New York at [e-mail]; Bob Van Voris in New York at [e-mail].
To contact the editor responsible for this story: David E. Rovella at [e-mail].

Last Updated: February 3, 2011 00:01 EST



ty joye

[sandi66]

Meredith Whitney Called To Testify Before House On Her Muni Call

www.zerohedge.com/article/meredith-whitney-called-tesify-house-her-muni-call


February 3rd, 2011 by maxkeiser
Respond
•ZH: Meredith Whitney Called To Testify Before House On Her Muni Call

MK: WTF!? CNBC’s 24 hour a day global propaganda machine to support the government’s Permanent Open Market Activity (POMA); buying and selling naked securities to manipulate their prices in order to support a kleptocratic regime propagating a market fundamentalist ideology of non-accountability, ecological and financial terror as well as permanent dissolution of America’s middle class – is OK. But pointing out the obvious – that the whole US muni market is a house of cards within a house of cards within a ponzi scheme on top of High Frequency Trading Fraud by Goldman and blatant market rigging of the Comex by JP Morgan is not. For God’s sake people. Can’t we just surround the Fed and demand the dictator vacates. Are we really going to wait for gas at $15 a gallon before we get off our ass and do a Tunis?


Meredith Whitney Called To Testify Before House On Her Muni Call

Submitted by Tyler Durden on 02/03/2011 16:23 -0500


According to Charlie Gasparino, the intifada between Meredith Whitney and the rest of the world just got uglier. According to the former CNBCer, the one-time Citi scourge has been called in to testify before the House TARP committee and explain her less than favorable position on munis.
From Dow Jones:

Meredith Whitney has been called to appear as a witness at an upcoming hearing by the U.S. House TARP oversight subcommittee, Fox Business Network's Charles Gasparino reported Thursday.

Gasparino cited sources as saying the financial analyst, whose prediction of potential defaults totaling "hundreds of billions of dollars" is widely blamed for the recent selloff in municipal bonds, has declined the offer to appear at the Feb. 9 hearing.

The Financial Services and Bailouts of Public and Private Programs subcommittee, chaired by Rep. Patrick McHenry, might subpoena Whitney and the report in which she apparently made the prediction, Gasparino said.
Attendees at the hearing will include "experts who disagree with" Whitney's call, according to Gasparino.

We are not sure how this will change the fact that most municipalities are, in a word, insolvent.
Those who are curious to read an abbreviated version of M-Dub's report, can do so here - link.

5
Your rating: None Average: 5 (21 votes)


»
•
•Login or register to post comments
•Printer-friendly version
•Send to friend



by alien-IQ
on Thu, 02/03/2011 - 16:25
#932462

So does this make it official that it is now illegal to be bearish?

•Login or register to post comments
by Id fight Gandhi
on Thu, 02/03/2011 - 16:27
#932473

That's how it sounds.

•Login or register to post comments
by Village Idiot
on Thu, 02/03/2011 - 16:47
#932569

Where's Joe McCarthy when you need him!

•Login or register to post comments
by Haywood Jablowme
on Thu, 02/03/2011 - 16:58
#932628


Just a matter of time before so-called "financial analysts and financial bloggers" around the USSofA show up in tomorrow's headlines as those "apparently committed suicide."
Let's get this show on the f**kin' road. I'm ready to shoot a couple of these twat's heads off. If my blood is spilt, f**k it. As long as I can take at least 2 down with me, it's on.



•Login or register to post comments
by PY-129-20
on Thu, 02/03/2011 - 17:01
#932640

Yeah! Let 'em come!


•Login or register to post comments
by tickhound
on Thu, 02/03/2011 - 17:18
#932705

ascistfay tatesay... itchezbay!

•Login or register to post comments
by whatz that smell
on Thu, 02/03/2011 - 17:22
#932723

ig p nital, nezitchbatches!

•Login or register to post comments
by CU1981
on Thu, 02/03/2011 - 20:04
#933224

WE should all email her to SPEAK the TRUTH !! for our own sakes !!

Kill the beast ...

•Login or register to post comments
by hambone
on Thu, 02/03/2011 - 20:09
#933241

Too much "truthiness"
Only way to go to jail is to tell the truth...all liars, cheats, thieves are immune so long as they hold protect their overlord brethren.

•Login or register to post comments
by hambone
on Thu, 02/03/2011 - 20:10
#933243

Too much "truthiness"
Only way to go to jail is to tell the truth...all liars, cheats, thieves are immune so long as they protect their overlord brethren.

•Login or register to post comments
by Rick64
on Thu, 02/03/2011 - 20:29
#933278

She is a financial Terrorist. National security at risk. Lock her up and send her to Guantanamo.

•Login or register to post comments
by thedrickster
on Thu, 02/03/2011 - 20:40
#933332

Yo tongue in yo cheek?

•Login or register to post comments
by Turd Ferguson
on Thu, 02/03/2011 - 20:49
#933363

Where are all the "free speech" and "no censorship" a-holes on this one?
This wreaks of pure, unadulterated political harassment and intimidation.

•Login or register to post comments
by thedrickster
on Thu, 02/03/2011 - 20:51
#933371

Methinks Rick was joking...otherwise....
Tahrir square pregnant dogez, I'm channelling inglorious bastards this evening.

•Login or register to post comments
by Rick64
on Thu, 02/03/2011 - 20:54
#933386

Of course I was joking.

•Login or register to post comments
by thedrickster
on Thu, 02/03/2011 - 21:05
#933402

I know, I know but I really do feel like channelling inglorious bastards this eve.
Is anyone else tired of wasting brain cells, drafting well reasoned logical points of discussion in a fruitless attempt to reason with perpetual adolescents suffering from a terminal case of stockholm syndrome?
Trolling is a far more satisfying and efficient way to confront nazis wherever one finds them.

•Login or register to post comments
by Calmyourself
on Thu, 02/03/2011 - 21:26
#933488

You mean leftists? Does not fit the narrative..
Thanks for ATW..

•Login or register to post comments
by the rookie cynic
on Thu, 02/03/2011 - 21:41
#933532

Word on the hill is that a Mr. O'brien will be doing most of the questioning and "re-education." Also, the Capitol is being renamed "The Ministry of Truth." therookiecynic.wordpress.com/

•Login or register to post comments
by william the bastard
on Thu, 02/03/2011 - 17:25
#932737

Bill Torquemada Gross has issued calls for inquisition, the lawgivers obey.

•Login or register to post comments
by aldousd
on Thu, 02/03/2011 - 21:48
#933551

actually, yes. you're right. funny as that is.

•Login or register to post comments
by trav7777
on Thu, 02/03/2011 - 17:14
#932692

in McCarthy's defense, it turned out that a lot of the people he was accusing of being communists did in fact turn out to actually have been communists when the files got released decades later

•Login or register to post comments
by EscapeKey
on Thu, 02/03/2011 - 17:26
#932735

Carroll Quigley disagrees. In "Tragedy & Hope", he states McCarthyism pretty much was a complete failure, although of course, that wasn't decades.

•Login or register to post comments
by william the bastard
on Thu, 02/03/2011 - 17:29
#932754

Before it was a failure it was a success. Ditto Hilter, Tojo, Stalin, Kaiser, Napoleon, Czar Nicholas, Mubarak, Hannibal, PeeWee Herman, &c, &c, &c.

•Login or register to post comments
by KickIce
on Thu, 02/03/2011 - 19:03
#933046

They all start out for the people, it's not until they gain power that you see them for who they really are.

•Login or register to post comments
by Spastica Rex
on Thu, 02/03/2011 - 19:55
#933200

Pee Wee Herman?

•Login or register to post comments
by KickIce
on Thu, 02/03/2011 - 20:02
#933218

sure, look at some of the stunts he pulled once he got celeb status.

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:19
#933458

i like peewee. i guess (it's only a guess) the "stunts" weren't that new, just that people noticed. that was new. that and the overdose of police. didn't kill him like it did lenny bruce so that's something. probably doesn't belong on a list with stalin, hitler and napoleon though.

•Login or register to post comments
by Orly
on Thu, 02/03/2011 - 21:29
#933500

I couldn't wait for Saturday morning to watch PeeWee talk to the King of Cartoons, Chair-y and the gang. PeeWee's Big Adventure is still a favorite movie.
"Oh, silly. There aren't any basements at the Alamo."
Duhnt-duhn-duhhhhhh.

Loves it!

•Login or register to post comments
by Calmyourself
on Thu, 02/03/2011 - 21:29
#933499

Quigley was mostly wrong Trav is mostly right.. State was full of them, probably still is..

•Login or register to post comments
by hedgeless_horseman
on Thu, 02/03/2011 - 17:25
#932738

I love you, man.

•Login or register to post comments
by Eric The Red
on Thu, 02/03/2011 - 18:11
#932900

Where can I sign up to be one of McCarthy's former targets? It's a badge of honor.

•Login or register to post comments
by Mercury
on Thu, 02/03/2011 - 21:20
#933464

Davos.

•Login or register to post comments
by Things that go bump
on Thu, 02/03/2011 - 19:47
#933175

I don't think being a communist is or ever was actually illegal in the United States. How could it be?

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:26
#933485

not nearly as bad then as being a whistleblower today (cf. bradley manning, etc., etc.). then you just had your career ruined, were a pariah, and were bankrupted by legal expenses. now they got you in permanent solitary prior to trial and can tell you you're lucky you didn't get on the executive assassination list. are this country's leaders great or what?

•Login or register to post comments
by New_Meat
on Thu, 02/03/2011 - 21:06
#933424

cha,
and welcome back

•Login or register to post comments
by fragrantdingleberry
on Thu, 02/03/2011 - 17:58
#932856

"Mrs. Whitney, are you now or have you ever been a bull?"

•Login or register to post comments
by Dapper Dan
on Thu, 02/03/2011 - 19:13
#933071

You will sinze zee papers old man. Well what do the say?
Merely that you have not been mistreated.
Cheech and Chong circa 1970

•Login or register to post comments
by Henry Rearden
on Thu, 02/03/2011 - 19:51
#933183

Joe McCarthy is both singing and doing cart wheels right now. The "red dream" officially died today!

•Login or register to post comments
by Sean7k
on Thu, 02/03/2011 - 16:30
#932497

Just prohibitively expensive (lawyer, plane fare, hotel, meals...) so some jerk off can ask questions about a report he obviously is incapable of understanding, otherwise he would just read it. Congressmen are just trained dogs.

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:27
#933489

that is a slur on trained dogs.

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 16:32
#932510

If they subpoena her, I hope it's on TV.
Too funny.

•Login or register to post comments
by Careless Whisper
on Thu, 02/03/2011 - 17:18
#932709

she will rip those idiots a new a hole.


•Login or register to post comments
by oogs66
on Thu, 02/03/2011 - 18:10
#932897

She won't rip anyone a new anything. She has no facts! She might be right but she is shooting blindly and not smart enough or informed enough to pull this off. Munis will rally hard that day. Get some people who know details to fight the fight!!

•Login or register to post comments
by sgt_doom
on Thu, 02/03/2011 - 18:54
#933015

No facts...riiiiiiggghhhtt.....just all those godawful securitized bonds, public-private partnerships throughout the country, and state and local pension funds absolutely empty thanks to their management by the very same private equity LBO firms which have been pillaging them.
Yup, no facts......

•Login or register to post comments
by oogs66
on Thu, 02/03/2011 - 19:47
#933176

She is on the right track. Might even be right. Hell I hope she is. But she is superficial! She latched onto this to create noise. She is not an expert - hell, until this report she couldn't spell municipal. There are many more credible people. I've had dinners with her. I'd say, empty suit, but the bra is nice

•Login or register to post comments
by Rick64
on Thu, 02/03/2011 - 20:08
#933236

Two years of research by her and a team, and your proof is that you had dinners with her so you know she doesn't know what she is talking about? I think I will go with her call.

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:34
#933511

the accusation is that her analysis moved the municipal market to reprice risk. decolletage rarely does.

•Login or register to post comments
by Rainman
on Thu, 02/03/2011 - 18:00
#932862

She is an enemy to the Ministry of Truth. She and her like will be rounded up, neutralized and minimized. That's just how it works.

•Login or register to post comments
by slewie the pi-rat
on Thu, 02/03/2011 - 19:37
#933036


mr. peabody:
if they serve her, i'm sure it will be on TV. no pol in his or her right mind would want to miss those flashbulbs!
the House TARP Committee, what a fine institution! even the crimepuppies on the ethics committee couldn't avoid the smell when they questioned the TARP CEOs under barney frankenfurter's leadership. ALL the companies had paid so much PAC money to the Committee 'members', that the poor ethics committee had to work overtime to make everything seem sheep-dip ok. dammit janet, if we're gonna do a time warp:
peabody, let's go wayback, ok?
YouTube - Time Warp (Official Video) from the movie Rocky Horror Picture Show - HD
i never realized this song and dance fit our goobermint so well! & QE!! does ZH have a theme song? the dance is so easy, i can almost do it!
darryl issa has the gavel, now. not to worry, tho, he's enuf of a weiner. the show WILL go on!

•Login or register to post comments
by slewie the pi-rat
on Thu, 02/03/2011 - 21:08
#933430


oops, wrong committee. DI is the oversight comm?
tarp is the sub-committee?
mchenry it is!
that's what i get for trying to read an ORGANIZATION chart!
at my age, i should know better!

•Login or register to post comments
by Sophist Economicus
on Thu, 02/03/2011 - 16:38
#932529

Nobody expects the TARP inquisition!
Their gonna make her listen to Schumer sing loves songs and then have Barny Frank water-board her by having him talk to her up close and personal

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 16:44
#932565

Lecturing of her by Barney Frank! Now that WOULD be rich! Maybe he thinks he can browbeat her into tearful remorse. I would pay for that show.
I get the feeling she can hold her own.

•Login or register to post comments
by Fred Hayek
on Thu, 02/03/2011 - 16:56
#932617

Surprise is our greatest weapon, along with a fanatical devotion to Ben Bernanke--one of our TWO greatest weapons!

•Login or register to post comments
by Id fight Gandhi
on Thu, 02/03/2011 - 19:36
#933148

I thought that tarp had a clause in it's three pages it could never be audited or challenged in congress.

•Login or register to post comments
by gold mining ceo...
on Thu, 02/03/2011 - 16:38
#932537

Nah, that's old news. Clients (mom and pop) of firms like MS are not allowed to short or buy short etfs.) That is fact

•Login or register to post comments
by bunkermeatheadp...
on Thu, 02/03/2011 - 16:48
#932578

+1

•Login or register to post comments
by I am a Man I am...
on Thu, 02/03/2011 - 17:23
#932727

who wants to bet she back tracks?? she already has in the stuff I've read post tv

•Login or register to post comments
by Temporalist
on Thu, 02/03/2011 - 17:31
#932759

Yea she screamed "Fire!" in a burning theater but they'll claim it was her match.

•Login or register to post comments
by sgt_doom
on Thu, 02/03/2011 - 19:02
#933040

I would hope, and sincerely recommend to Ms. Whitney, that she bring along with her a copy of the recent report from the Financial Crisis Inquiry Commission to read to those bozos.
Someone has to........

•Login or register to post comments
by stormsailor
on Thu, 02/03/2011 - 19:23
#933105

patrick mchenry? are you kidding. he is just a little rich kid that has never balanced a book or had a job in his life.

his family business has a government contract to cut grass on the interstate.

•Login or register to post comments
by pazmaker
on Thu, 02/03/2011 - 21:00
#933408

He is not a lawyer that is a good start and he has never voted for a tax increase another good start and he is not for bailing out states or municipalities if you can believe what he says on cspan

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:37
#933515

you lost me at "if you can believe what he says".

•Login or register to post comments
by Hedge Jobs
on Thu, 02/03/2011 - 19:52
#933195

Yep! Just like you cant question the holocaust. No one is alowed to question the chairsatan's veiw of the "recovery". Investigation either strengthens the truth or exposes the lie.
"Recovery deniers" will soon be thrown in jail!

•Login or register to post comments
by Freddie
on Thu, 02/03/2011 - 20:36
#933317

Obama's Thought Police. But he has more then a few supporters on ZH who listen to NPR.

•Login or register to post comments
by gloomboomdoom
on Thu, 02/03/2011 - 20:56
#933393

Here is a junk for hating free speech!
National Public Radio

•Login or register to post comments
by Joeman34
on Thu, 02/03/2011 - 21:29
#933498

Nice 'straw-man', but it doesn't fly. Whitney deserves to be called before Congress for her remarks. Her predictions with respect to the municipal bond market make no sense if you do the math.

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:43
#933539

which you've done. thanks.

•Login or register to post comments
by NOTW777
on Thu, 02/03/2011 - 16:26
#932464

meredith -repeat after ben - munis are fine, the recovery is on track, hope and change

•Login or register to post comments
by whatsinaname
on Thu, 02/03/2011 - 16:40
#932542

PIMCO having her hauled in so she can say nice things about Munis ?


•Login or register to post comments
by LostWages
on Thu, 02/03/2011 - 21:00
#933407

meredith -repeat after ben - munis are fine, the recovery is on track, hope and change

"These are not the bonds you've been looking for."
M. "Your Fedi mind tricks won't work on me, O.B.Bernank"




•Login or register to post comments
by Id fight Gandhi
on Thu, 02/03/2011 - 16:26
#932467

Now she has to go before congress because she sees a muni failure? How normal is this?

•Login or register to post comments
by alien-IQ
on Thu, 02/03/2011 - 16:28
#932479

It's the "new normal".

•Login or register to post comments
by redpill
on Thu, 02/03/2011 - 16:48
#932582

Message: Do what you're supposed to or you'll be called before the overlords.

•Login or register to post comments
by Alienated Serf
on Thu, 02/03/2011 - 18:11
#932902

i am as cynical as anyone, but its simpler then that. congress always drags people in to make political points. look at the whole baseball fiasco, just done so some klowns could get all high and mighty. for whitney its gonna pts scored for either "see, states are going bankrupt, we must bail them out!!" or "see, states are going bankrupt, they have to cut spending." bread + circus= congress

•Login or register to post comments
by sgt_doom
on Thu, 02/03/2011 - 18:59
#933033

Good point and to step off from your point, we should all remember that absolutely no frigging member of the US congress ever called Mark Klein to come testify before them when he discovered those Narus boxes*** at the commercial switching centers.
What was that about warrantless wiretapping??
***Narus, now a subsidiary of Boeing, is used in semantic analysis at the packet level (Deep Packet Inspection) and allows The State (as in Egypt, where they have also been used quite recently) to track and follow online Web users. Also, a Boeing subsidiary is Jeppesen Dataplan, known as "Extreme Rendition Airlines" -- thus giving Boeing a synergy of global terrorism. See Packet Forensics for indepth research of total invasion of all privacy.

•Login or register to post comments
by rosiescenario
on Thu, 02/03/2011 - 18:59
#933035

...its SHOWTIME....they want her there to boost their press presence...I here they had been considering calling Pamela Anderson until some of the younger aids pointed out she is passe.....

•Login or register to post comments
by rosiescenario
on Thu, 02/03/2011 - 19:00
#933037

...its SHOWTIME....they want her there to boost their press presence...I hear they had been considering calling Pamela Anderson until some of the younger aids pointed out she is passe.....

•Login or register to post comments
by Seasmoke
on Thu, 02/03/2011 - 16:27
#932470

So now citizens can no longer give their OPINION , without being subpoena.......

•Login or register to post comments
by alien-IQ
on Thu, 02/03/2011 - 16:33
#932514

only if that opinion expresses an uncomfortable truth.
if you tell a cheery lie...they make you Ambassador to (insert name of puppet dictatorship nation here).

•Login or register to post comments
by NOTW777
on Thu, 02/03/2011 - 16:27
#932471

"experts who disagree with" Whitney's call, according to Gasparino.
timmy, ben, rahm, SEIU

•Login or register to post comments
by SWRichmond
on Thu, 02/03/2011 - 16:43
#932556

Yes, think of all those municipal employees whose lives will be impacted by...truth. Someone has to stop it! What about their retirements?

•Login or register to post comments
by NOTW777
on Thu, 02/03/2011 - 16:47
#932571

LOL and the possible impact on cruise lines, ferrari dealerships, botox - you name it

•Login or register to post comments
by hedgeless_horseman
on Thu, 02/03/2011 - 16:38
#932476

Witnesses for The Inquisition at the hearing will include, "experts who disagree with Whitney's call", according to Gasparino, and, "a Scandinavian man that claims Whitney forced him to finish having sex with her after he had changed his mind half way through the act."

•Login or register to post comments
by Mad Max
on Thu, 02/03/2011 - 16:38
#932533

Ouch! Good comment.

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 16:53
#932601

+1000
roflmao

•Login or register to post comments
by malek
on Thu, 02/03/2011 - 17:05
#932647

LOL +31.10
Actually I think it would need to read "Swedisch man" as other Scandinavian countries do not have equally crazy laws.

•Login or register to post comments
by Alienated Serf
on Thu, 02/03/2011 - 18:15
#932917

mega lulz

•Login or register to post comments
by Caviar Emptor
on Thu, 02/03/2011 - 16:28
#932482

Salem 1692: called to testify about 'spectral evidence' of telekinesis and telepathy, seductions and heresy by word.

•Login or register to post comments
by A_MacLaren
on Thu, 02/03/2011 - 16:28
#932484

Does she get to bring her bodyguard, errr, husband, to keep the CONgress Jackals at bay?

•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 16:28
#932485

So no one can say anything negative that might tank a market without getting accused of manipulation. All you analyst types out there-- Shut Your f**king Mouths. If you don't have anything nice to say, just don't say any f**king thing at all or we will haul your ass in.
THIS BLOG IS CLOSED FOR BUSINESS.

•Login or register to post comments
by Misstrial
on Thu, 02/03/2011 - 16:47
#932574

Agree!
And while they're at it, why don't they subpoena NJ Gov. Christie.
He basically stated the same thing as Meredith.
60-Minutes "Day of Reckoning" link:
www.youtube.com/watch?v=nP3b0_fnPxQ
~Misstrial

•Login or register to post comments
by Careless Whisper
on Thu, 02/03/2011 - 17:22
#932724

oh they got somethin better planned for him. could be a hot argentinian babe planted in his office or a handsome body guard. who knows, but they'll try somethin.


•Login or register to post comments
by lizzy36
on Thu, 02/03/2011 - 16:32
#932503

Shockingly, no analyst/strategist (Dick Bove-LEH, Jim Crammer-BSC)) has ever been called before congress for bullish calls.
Oddly, men like Bernanke, and Geithner who both missed, and aided the greatest financial crisis in the world, got PROMOTIONS.
Anyone see a visual of congress chanting: Going on a Bear Hunt.....I'm not afraid.


•Login or register to post comments
by A_MacLaren
on Thu, 02/03/2011 - 16:55
#932613

Oddly, men like Bernanke, and Geithner who both missed, and aided the greatest financial crisis in the world, got PROMOTIONS.

The Peter Principle in action, ""In a hierarchy every employee tends to rise to his level of incompetence".

•Login or register to post comments
by TriggerFinger
on Thu, 02/03/2011 - 21:37
#933518

or stated another way, shit rises to the top. beware floating turds!

•Login or register to post comments
by jeff montanye
on Thu, 02/03/2011 - 21:49
#933553

at this point shouldn't one stop calling it a "financial crisis" and use the more accurate "public/private control fraud"?

•Login or register to post comments
by Amish Hacker
on Thu, 02/03/2011 - 16:57
#932622

That just means that Bernanke and Geitner will be joining Tommy Franks, Paul Bremer, and George "Slam Dunk" Tenet in the Hall of Shame. They got the Medal of Freedom from Dubya in 2004 for their actions in Iraq. In 7 years, we'll be looking back at promotions for Tim & Spanky the same way.

•Login or register to post comments
by Misstrial
on Thu, 02/03/2011 - 17:02
#932644

And don't forget about Hank Paulson!
~Misstrial

•Login or register to post comments
by Amish Hacker
on Thu, 02/03/2011 - 19:15
#933077

Of course. Hank was recommended for the Congressional Medal of Honor by the Wall Street Journal (http://blogs.wsj.com/deals/2008/10/15/mean-street-hank-paulson-national-...), but his real reward for going through the revolving door of gov't service was the chance to wash the taxes out of all those GS capital gains.

•Login or register to post comments
by FunkyMonkeyBoy
on Thu, 02/03/2011 - 16:32
#932504

Another sign of how close to the end we are. You don't return to normalcy from this engineered cluster-f**k. This is all going down big time.

•Login or register to post comments
by TDoS
on Thu, 02/03/2011 - 16:49
#932586

+ 10.

•Login or register to post comments
by MyKillK
on Thu, 02/03/2011 - 16:32
#932505

LMAO. They trying to pin the selloff in Munis to her?? Wow the regime is looking anywhere for a scapegoat.

They do realize that the Build America Bonds program was not extended right?

•Login or register to post comments
by Dr. Porkchop
on Thu, 02/03/2011 - 16:34
#932516

Congratulations America, you've now officially entered the realm of fascist police state, where speaking the truth is a revolutionary act.
It's never good to be the messenger, I suppose.

•Login or register to post comments
by lunaticfringe
on Thu, 02/03/2011 - 16:34
#932517

Anything vaguely resembling the truth must be screened by our masters.
However, all you lying, thieving f**king bankers and politicians- you f**ks get a free pass. Go f**k yourselves.
<rant done>

•Login or register to post comments
by mfoste1
on Thu, 02/03/2011 - 16:35
#932520

This is absolutely disgusting....ok so she has stood by this call for some time now, more as a warning for investors than anything else. So now the govt is saying that it raises a flag how she called for the inevitable muni collapse?! The govt is promoting fraud by NOT letting opinions be heard throughout the financial community. Sound kinda similar to McCarthyism if you ask me. "You don't agree with us that the failing states and munis are just fine? You're a communist!"

•Login or register to post comments
by masterinchancery
on Thu, 02/03/2011 - 18:44
#932978

A smart 2d grader could figure out that many munis will not have to cash to cover interest payments and redemptions in the near future, which means it is Bernanke/hyperinflation or nothing. And currently Ben isn't playing.

•Login or register to post comments
by Rick Blaine
on Thu, 02/03/2011 - 16:37
#932524

I obviously have no idea whether or not she is right about munis, but I can only hope she does testify and makes mincemeat out of the other "experts."
...along with mocking the joke of a Federal govt that we now have.
It's almost like the Red Scare or something...

•Login or register to post comments
by Zero Govt
on Thu, 02/03/2011 - 16:43
#932528

Let's remind ourselves, Washington has a $14 Trillion debt hanging out its arse, has destroyed the US property market, strangled its own US energy sector, propped up Wall Street, GM and Chrsyler, fighting 2 false wars, its regulators are a clown show, its 2 healthcare programmes are both absolutely fuking bankrupt, as is its pensions and what have the 20 Committees, 260 sub-committees and 12 Senate Investigatory committees ever achieved to date while this clown show has been festering???
Wow, a Washington committee is going to pick on Whitney, they really know where the problem is!!!!
Answers on a Postcard to: Our Country is a Fuking Washington-Made Shambles, 300 Committees Rammed with Crones Really Working For Your Benefit Dept., Washington, USA, (Postcode. INSOLVENT)

•Login or register to post comments
by Dr. Porkchop
on Thu, 02/03/2011 - 16:42
#932554

Crones...lol
I don't know about that but we know they are full of shit...

•Login or register to post comments
by slewie the pi-rat
on Thu, 02/03/2011 - 20:42
#933341


oh, doc-tor!
lol, indeed! that's a great post by zero, tho.
i'm goin: is that a typo? it shld be clones, right?
then: no, it should be drones.
then, i figured: clones w/ drones!
that's the ticket!


•Login or register to post comments
by topcallingtroll
on Thu, 02/03/2011 - 16:38
#932530

Congress got mad at analyst calls about an mbs cdo crash and demanded an investigation. Congress also got mad when mbs investors refused to be the bagman with the court settlement with country wide and demanded their clear right to putbacks. Sounds like every time congress demanded an investigation of investors and analysts they made it worse.

•Login or register to post comments
by Mad Max
on Thu, 02/03/2011 - 16:38
#932531

The beatings will continue until sovereign debt credit ratings improve.

•Login or register to post comments
by Sudden Debt
on Thu, 02/03/2011 - 16:44
#932535

The hearing will go a bit like this:

Mrs. Whitney.... Meredith, can we call you Meredith? Sure we can, we're all friends here, right?
Now Meredith... do you recognize the people on these pictures?
Is that your husband driving in his car and are that your children going to school?
Nice children you have Meredith
But accidents happen so fast...
You wouldn't want something bad to happen to them right Meredith?...
Are you a patriot Meredith? Do you love your country Meredith?
Meredith... we would like you to stop saying these bad things.
I think you understand us right Meredith?
People don't need to hear this things...
they don't want to hear these things...
People Meredith... people like to hear comfortable things.... you know what I mean Meredith?
They don't want to read about bad things, it upsets them.
Like schoolchildren comming from school and being run over...
A husbands car exploding...
Can we agree on this Meredith?

•Login or register to post comments
by Zero Govt
on Thu, 02/03/2011 - 16:47
#932576

It's eery, expert, you in TSA or something?

•Login or register to post comments
by malek
on Thu, 02/03/2011 - 17:11
#932680

Along the lines of Monty Python:

Colonel: But please do sit down.
Luigi: No, we prefer to stand, thank you, Colonel.
Colonel: All right. All right. But what do you want?
Dino: What do we want, ha ha ha.
Luigi: Ha ha ha, very good, Colonel.
Dino: The Colonel's a joker, Luigi.
Luigi: Explain it to the Colonel, Dino.
Dino: How many tanks you got, Colonel?
Colonel: About five hundred altogether.
Luigi: Five hundred, eh?
Dino: You ought to be careful, Colonel.
Colonel: We are careful, extremely careful.
Dino: 'Cos things break, don't they?
Colonel: Break?
Luigi: Well everything breaks, don't it Colonel. (he breaks something on desk) Oh dear.
Dino: Oh see my brother's clumsy Colonel, and when he gets unhappy he breaks things. Like say, he don't feel the army's playing fair by him, he may start breaking things, Colonel.
Colonel: What is all this about?
Luigi: How many men you got here, Colonel?
Colonel: Oh, er... seven thousand infantry, six hundred artillery, and er, two divisions of paratroops.
Luigi: Paratroops, Dino.
Dino: Be a shame if someone was to set fire to them.
Colonel: Set fire to them?
Luigi: Fires happen, Colonel.
Dino: Things burn.
Colonel: Look, what is all this about?
Dino: My brother and I have got a little proposition for you Colonel.
Luigi: Could save you a lot of bother.
Dino: I mean you're doing all right here aren't you, Colonel?
Luigi: Well suppose some of your tanks was to get broken and troops started getting lost, er, fights started breaking out during general inspection, like.
Dino: It wouldn't be good for business would it, Colonel?
Colonel: Are you threatening me?
Dino: Oh, no, no, no.

•Login or register to post comments
by I Am The Unknow...
on Thu, 02/03/2011 - 16:39
#932540

So, does this mean we will all be heading for Washington soon? I hear it's cold there this time of year.
Where are they going to put all of us? I don't think there are enough hotel rooms in DC for everybody who shares Whitney's views. Personally I figure by the time the default process is finished, the bailout, emergency funding, and total costs (including dollar devaluation and market selloffs) will exceed 900 billion, so does that mean I should go first instead of Whitney? I think she's being conservative with "hundreds of billions."

•Login or register to post comments
by hedgeless_horseman
on Thu, 02/03/2011 - 17:05
#932567

I wonder if the hearing be open to the public?
This might be just the excuse we need for a little get together in D.C.
I can bring my insolvent hometown's financial statements, and other supporting evidence.

•Login or register to post comments
by bunkermeatheadp...
on Thu, 02/03/2011 - 16:57
#932625

No, ZH isn't followed by sheeple.
Ms. Whitney's mistake was going on CNBC and scaring the sheeple that the Fed, Cramer, and the U.S. Gov are all relying upon to up their 401(k) contributions, buy buy buy, spend spend spend, and borrow borrow borrow.

•Login or register to post comments
by Cerberus
on Thu, 02/03/2011 - 16:40
#932541

Stomp, Stomp...Stomp, Stomp....jackboots in the night.

•Login or register to post comments
by Overpowered By Funk
on Thu, 02/03/2011 - 16:40
#932543

These banks have to sell everything they can to suckers clients at top prices. Add ZIRP, and increasing fees to the mix of desperate measures in keeping these financial Titanics afloat. They're all insolvent and will be that way for a long time if not forever. TARP was the mother of all Hail Mary throws and if it fails - well... Regardless whether MW is right, wrong, or full of crap - You do not f**k with the banks publicly funded feedbag, or as MW is soon to find out "justice" (ha ha ha...) will be swift.

•Login or register to post comments
by topcallingtroll
on Thu, 02/03/2011 - 16:40
#932544

I would kinda like to f**k meredith. i like smart balsy blondes.

•Login or register to post comments
by Dr. Porkchop
on Thu, 02/03/2011 - 16:44
#932564

I didn't junk that, I think she's an attractive woman.

•Login or register to post comments
by william the bastard
on Thu, 02/03/2011 - 17:35
#932772

She stands for mating in the 8th floor stairwell.

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 18:04
#932880

f**king her only gets 5 junks. Punching her in the face (pricelesss) 8 junks!

•Login or register to post comments
by Trundle
on Thu, 02/03/2011 - 16:40
#932545

Why are they wasting time on this when they should be (once again) grilling Canseco on steroids?

•Login or register to post comments
by Alienated Serf
on Thu, 02/03/2011 - 18:20
#932930

exactly what i was thinking (my comment above). or maybe we need to ask colbert about picking fruit again; it was an enlightening use of taxpayer time and money.

•Login or register to post comments
by tony bonn
on Thu, 02/03/2011 - 16:41
#932549

proof positive that most "investors" are cattle following a stampede...they don't invest on their recognizance nor od they have the slightest idea of what they are buying....
so, to protect the cattle, intimidate practitioners of free speech...
the need to quash free speech is a sign of a sclerotic revanchist totalitarian state....
did the stupid congressshits just discover that munis are trash? what a bunch of f**ktards...

•Login or register to post comments
by LongSoupLine
on Thu, 02/03/2011 - 16:41
#932550

When's Blythe gonna get a call from Congress to explain her silver moves?
After all, that's been 100 times more financially desructive than muni's.

•Login or register to post comments
by mrgneiss
on Thu, 02/03/2011 - 20:53
#933379

Not to mention CDS's.

www.guardian.co.uk/business/2008/sep/20/wallstreet.banking

•Login or register to post comments
by papaswamp
on Thu, 02/03/2011 - 16:42
#932551

The power of PIMPCO...congress the brownshirts of the banksters.

•Login or register to post comments
by Gubbmint Cheese
on Thu, 02/03/2011 - 16:43
#932557

Municipal McCarthyism..
"are you now, or have you ever been a member of the Bearish Party"



•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 16:44
#932558

Okay guys, I thought of the ultimate iron cage match up for ya'll:
Meridith Whitney
vs.
Blythe Masters
Masters naturally being one of the experts they would call in that would disagree on the Munis failing. After all, she knows Ben will print as much as we need which is why she is shorting the shit out of Gold and Silver.

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 17:02
#932645

Two girls in... one girl out.
How would we want as Master Blaster?

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 17:04
#932656

My apologies, I missed the obvious.
Blythe is Master Blaster.

•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 17:12
#932684

Who run barter town?
Embargo!
Naked short the silver!!!
Naked short the gold!!!


•Login or register to post comments
by Id fight Gandhi
on Thu, 02/03/2011 - 19:43
#933169

Who's left shoveling the pig shit.

•Login or register to post comments
by MachoMan
on Thu, 02/03/2011 - 17:32
#932761

Two girls, one cup.

•Login or register to post comments
by LoneStarHog
on Thu, 02/03/2011 - 16:45
#932561

This should be fun. Kinda like a PhD giving a lecture and answering questions from a Kindergarten class.

•Login or register to post comments
by DonnieD
on Thu, 02/03/2011 - 16:53
#932602

Bad example. The kindergartners would stump the PhD without much effort.

•Login or register to post comments
by Salinger
on Thu, 02/03/2011 - 16:45
#932562

I was looking for membership of the committee and came across this site - at first I thought it was a scam site but it's a dot gov

financialservices.house.gov/

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 17:27
#932744

It doesn't look like any .gov site I've been to.
Maybe the .house before the .gov means something.

•Login or register to post comments
by au_bayitch
on Thu, 02/03/2011 - 18:37
#932958

Just who.is the site came up as part of the United States House of Representatives website.

•Login or register to post comments
by Hephasteus
on Thu, 02/03/2011 - 16:45
#932566

Hmm. Merideth Whitney versus keynsian experts. She'll slaughter them.


•Login or register to post comments
by bernorange
on Thu, 02/03/2011 - 16:47
#932572

Guess she didn't have the government's blessing to publish her professional opinion. Which branch of the Department of Homeland Security handles economic propaganda anyway?

•Login or register to post comments
by Salinger
on Thu, 02/03/2011 - 16:59
#932577

The Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs

•Republicans
•Chair: Rep. Patrick T. McHenry (NC-10)
•Vice Chair: Rep. Frank Guinta (NH-1)
•Anna Marie Buerkle (NY-25)
•Justin Amash (MI-3)
•Pat Meehan (PA-7)
•Joe Walsh (IL-8)
•Trey Gowdy (SC-3)
•Dennis Ross (FL-12)
•Democrats
•Mike Quigley, Illinois, Ranking Member
•Carolyn Maloney, New York
•Peter Welch, Vermont
•John Yarmuth, Kentucky
•Jackie Speier, California
•Jim Cooper, Tennessee

oversight.house.gov/index.php?option=com_content&view=article&id=...

More on McHenry
He even has a comment section on his house.gov page -
mchenry.house.gov/Blog/?postid=218465


•Login or register to post comments
by Tom in AZ
on Thu, 02/03/2011 - 19:20
#933096

McHenry is dangerously stupid. Putting that little douchebag in charge of anything is flabbergasting.

•Login or register to post comments
by bob_dabolina
on Thu, 02/03/2011 - 16:48
#932579

Truth sayers are subpenissed.
Liars walk....Pass Go...Collect 200 (billion)

•Login or register to post comments
by redpill
on Thu, 02/03/2011 - 16:50
#932588

Truth is treason in the Empire of Lies.

•Login or register to post comments
by Zero Govt
on Thu, 02/03/2011 - 17:00
#932634

Yes the whistleblowers on Madoff were ignored for 6 years now they're going one stage further with Meridith and fuking persecuting them!

•Login or register to post comments
by Bastiat
on Thu, 02/03/2011 - 17:09
#932673

Nice one.

•Login or register to post comments
by OpenEyes
on Thu, 02/03/2011 - 18:00
#932866

very nice.

•Login or register to post comments
by NOTW777
on Thu, 02/03/2011 - 16:49
#932583

i'm sure the first question will be from mr. gross

•Login or register to post comments
by Josh Randall
on Thu, 02/03/2011 - 16:49
#932585

Genius - truth gets a forum, and Congress gets to look stupid on TV again. Howabout watching the dazed look of disbelief of the Congresspeople when she talks about how cities, municipalities, and states are insolvent around the US. You just know some of those smart Congressmen are going to poo-poo that and retort "not in my district they aren't"...

•Login or register to post comments
by themosmitsos
on Thu, 02/03/2011 - 16:50
#932591

Intifiada :DDDDDDDDDDDDDDD

•Login or register to post comments
by chunkylover42
on Thu, 02/03/2011 - 16:53
#932603

1) Whitney is grossly overstating the problem in municipals and her call is more wrong than right, but
2) her call has almost nothing to do with the selloff late in 2010, Congress should actually look in the mirror for the answer to that question. Problem is that amounts to Congress accepting responsibility, which we know isn't going to happen.

•Login or register to post comments
by Zero Govt
on Thu, 02/03/2011 - 17:35
#932771

there's no flies on Whitney especially compared to the vast sacks of shit hanging off Washingtons... every opportunity she gets she should say "Muni debt looks unstable like Washingtons" and "the debt to income ratio like the US Govts is approaching unsustainable" and slowly cook the incompetent crones on the Senate Committee in their own insolvent juices

•Login or register to post comments
by MachoMan
on Thu, 02/03/2011 - 17:35
#932773

She's overstating the problem with municipals... how...

•Login or register to post comments
by masterinchancery
on Thu, 02/03/2011 - 18:55
#933017

Where do you get this stuff? Living in the state of Illinois, which is stiffing vendors everywhere and failing to make required pension contributions in the billions, it is clear that default is approaching fast. Maybe you live in N.Dakota?

•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 16:57
#932604

Tyler,
Do you still think she is Bernanke's mouthpiece/henchwoman? Is this all drama to give him cover on that?

•Login or register to post comments
by Tyler Durden
on Thu, 02/03/2011 - 17:35
#932776

Not sure where you got that impression. Our only statement w/r/t Meredith is that the only reason equities have seen inflows in the past 4 weeks is due to the outflows from munis over the same period. End of story. And yes - Bernanke does benefit from the current status quo since he will be monetizing munis (first, before stocks) eventually regardless.

•Login or register to post comments
by misterc
on Thu, 02/03/2011 - 16:56
#932605

Well, I read on my favorite German website that she couldn't come up with numbers on her allegations of municipal default. Regardless of whether that might turn out to come true or not, she just can't make up that subjects as if she "knows" (or not, freedom of speech, whatsoever, can she?).
Her defense was she had to keep information limited to her $$$-subscribers. Turns out, her report didn't contain any legitimate numbers at all.
So, after all, publicity is good for everyone, I think. Just try to keep people/sheeple chatter about you, no matter if you have something important to tell or not.


•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 17:05
#932658

Perhaps this is over simplistic, but all you have to do, like any business and household, is look at your income vs. your expenditures.
Employment down, house values down, businesses contacting, commerce contracting-->Tax receipts down.
Govt. deficits increasing, borrowing increasing, services for unemployed and poor increasing, retirements and folks tapping their pensions increasing--> Out flows up.
They were out of balance before the financial crisis started. It is all worse now.
I agree you need to see the real numbers to have specifics, but this can't be too hard to find. There is no save here. It's going down.
Maybe I should go testify?

•Login or register to post comments
by MachoMan
on Thu, 02/03/2011 - 17:39
#932788

There is no obligation to publish a quantification of your call... obviously it helps with credibility... but, my guess would be she'll claim some proprietary source/method for her data collection... that she doesn't want revealed, hence why she didn't include it.
I mean, she has all the anecdotal evidence in the world to make a case... have some of her monkeys crunch numbers on the top 100 municipalities or something and call it a day... it's all public info...

•Login or register to post comments
by alien-IQ
on Thu, 02/03/2011 - 18:28
#932941

Wile there are a wide variety of opinions about her, you be hard pressed to find anyone that thinks she is stupid, uninformed or lacking in detail.
The suggestion that she has no numbers to back up her claims seems, to put it kindly, unlikely.
Her credibility is on the line, and I seriously doubt she would gamble that away just to make some "outrageous" claim.
She'll back up her claims. With numbers.

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 21:40
#933528

if you crunch the numbers her 100 billion in one year defaults is dumber than the tooth fairy

We would need 8 billion in january to reach her annualized goal. NOT GONNA HAPPEN SHES STUPID, And yes she triggered a bond event, wich when let to burn out of control destroys a group of people the ability to carry its debt.

•Login or register to post comments
by lbrecken
on Thu, 02/03/2011 - 16:54
#932606

SCUM........

•Login or register to post comments
by lbrecken
on Thu, 02/03/2011 - 16:55
#932612

its NAZI Germany...speak out and and be prosecuted.....

•Login or register to post comments
by ThisIsBob
on Thu, 02/03/2011 - 16:56
#932615

Some Palinite tea sipper is going to get in a discussion with Ms. Whitney about municipal bond risk? Thats rich beyong words.

•Login or register to post comments
by Yikes
on Thu, 02/03/2011 - 17:23
#932733

Why the condecension? It seems to me that the Dem's and the GOP insiders seem to be having a hard time grasping the concept of "we're broke", not the TEA party or Palinista's.

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 17:35
#932768

Well said.., well played.

•Login or register to post comments
by Freddie
on Thu, 02/03/2011 - 20:47
#933359

+1

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 16:58
#932629

that pregnant dog shoulda stuck to 9th street hooking. She stepped in water way to deep for her to swim. And there are BIG Sharks waiting to eat her alive messing with EVERY CITY in the USA
messing with america just isnt smart,
all those dipshits on cnbc need the gitmo special and see if they sing god bless america EVERY f**kING MORNING after that

•Login or register to post comments
by equity_momo
on Thu, 02/03/2011 - 17:07
#932664

Hey Mr Anus , does your Boss ever f**k you whilst hes waiting for lost souls or something interesting on the tv? Does he make you feel special?

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 17:08
#932672

come on gay boy, God is my boss and he isnt sexual

•Login or register to post comments
by malek
on Thu, 02/03/2011 - 17:22
#932718

Right, and sexuality is a mistake by nature... oh, wait, evolution doesn't exist. So whose was it?
(And I don't give a sh*t if you are homo, hetero, bi, or practice celibacy.)

•Login or register to post comments
by gmrpeabody
on Thu, 02/03/2011 - 17:38
#932784

If God IS your boss..., boy, you better run!

•Login or register to post comments
by MsCreant
on Thu, 02/03/2011 - 17:47
#932821

LMAO!
Satansanus, we have good news for ya. God is trying to like you.

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 18:06
#932885

I believe equity homo is a f**kING f*g**t

•Login or register to post comments
by Alienated Serf
on Thu, 02/03/2011 - 18:42
#932973

anusface, you are by far the most worthless commenter on the site. the brainless bullshit you post has no real or even any entertainment. i can't tell if you are a angry 12 y/o who gets beat up everyday and acts tough on here or a complete moron with an IQ below 50.
if you are an angry 12 y/o- bad anus, bad. go make some friends at school and leave us alone.
otherwise, just killyourself; here are some instructions howtohangyourself.ytmnd.com/
GO AWAY



•Login or register to post comments
by Zero Govt
on Thu, 02/03/2011 - 19:57
#933161

Satunsanus ...."messing with america just isnt smart"
Isn't that precisely what the parasites of the Dem and GOP Parties are doing? Have you noticed the devastation wrought by the US Govt in US property, US energy, US banking, healthcare, Big Govt and Little Govt debt levels... I could go on and on couldn't I?
Do you not think it's a good thing Merdith warned investors to get out of collapsing State debt, rather than the usual paid establishment fraudsters at the Credit Ratings Agencies who don't tell you their triple A rated sacks of shit are bankrupt until after they blow up in your face?
Which part of representing America do you crusade for, the 1% of parasitical bankrupt Govt scum and their crones or the 99% who are being billed for these out-of-control nationwide wrecking balls?

•Login or register to post comments
by satansanus
on Thu, 02/03/2011 - 21:51
#933559

Hey alienated serf. I would hate me If I was you too. Lesbian feminist jews usually dooooooo!!!!!!!!!

•Login or register to post comments
by cunningtrader
on Thu, 02/03/2011 - 17:02
#932641

Not a problem, the big cyclone in Australia, was predictably followed by the Goldman Sachs appointed noddys blaming it all on global warming, and the need for the global carbon trading scam to start up sooner then later. Of course, GS would be in heaven if this were to come to pass, as they would be running the est 70 trillion dollar CT Exc, that was originally put together and patented by Cantor Fitzgerald and Aon Corp, who were taken out when the WTC got whacked.
Naturally the northern hemisphere's big blizzards and record low temps are not discussed in the same breath...
Anyone for Haarps weather control? ....Ferris...? Anyone?

•Login or register to post comments
by TheMarketSniper.com
on Thu, 02/03/2011 - 17:04
#932649

America is now a police state...

•Login or register to post comments
by equity_momo
on Thu, 02/03/2011 - 17:04
#932651

I think this might just be the craziest news item i have read on ZH. Thats saying something.
We are officially in la-la land. Stop the ride i want to get off.

•Login or register to post comments
by zebra
on Thu, 02/03/2011 - 17:04
#932653

that's no fun. i want to see ZH got subpoena!

•Login or register to post comments
by John McCloy
on Thu, 02/03/2011 - 17:11
#932657

I love this woman but I do not understand what is so difficult for Congress to see here. States and cities are already broke and have expanding pension payments due, falling property tax assessments and falling tax receipts because the Wall Street free money bonanza is isolated in only a few cities.
When the jobs are being shipped elsewhere, the gasoline costs and food costs are rising we have more going out or owed than coming in so layoffs are necessary which further depresses expenditure at small business establishments which leads to more small business layoffs which leads to avoidance of taxes at every avenue by asking for cash only payments at places like restaurants..it is a cycle.
I think they simply want Meredith to come in..paint the doomsday..and then use her record to usher in muni bailouts via QE4. QE3 will by a hybrid of Treasuries and MBS. I am telling you Ben has no idea what to do now that 2 years of ZIRP and record low mortgage rates have not returned housing to previous levels..it is incomprehensible to him. He truly believed he could reflate a bubble in housing and have that momentum go forward for two years so he could liquidate that underwater MBS at breakeven levels.
Not happening and when the next economic shock comes the Fed is insolvent and so if the FDIC.All this and rates will skyrocket bking America via interest payments on debt. From 2009 March on it is ZIRP and QE for ever + rising commodity costs. Deflation is the ONLY thing which will save us as the elites go broke and housing becomes affordable.

•Login or register to post comments
by MachoMan
on Thu, 02/03/2011 - 17:55
#932839

A couple of things:
First, why would you assume they were trotting merideth out there to spell gloom and doom in support of QEnfinity? Apparently, the deck has been stacked against her and she is going to face a firing squad of sorts from numerous professionals attempting to discredit her. The only way they would have her testify is if they knew they could poke holes in her arguments... if they thought she would be able to sufficiently defend her thesis, then they would not make idiots out of all her counterparts (and thus decrease whatever credibility is left of their mouth pieces).
Last, why do you think the elites will go broke from deflation and that it will lead to more affordable housing? That only works when the principal actors literally have no hard assets. I think the statement is somewhat accurate for their vehicles of oppression (limited liability entities), but that is why they give themselves record bonuses... they are withdrawing the spoils and converting them into assets that may lose value in nominal terms, not real terms. After the dust settles, the wealth gap will largely be unaffected... possibly enough to reinvigorate some semblance of a middle class, but not enough to cure the imbalance and, therefore, the subsequent and familiar inevitable collapse. About the only way the imbalance is cured will be through confiscation... and that carries its own risks...
Further, there are a few assumptions in there... the most notable being that wages will decrease at a slower rate than price deflation... and I am not firmly convinced of this fact.

[sandi66]

UBS adds wealth office in Charlotte

Date: Friday, February 4, 2011, 6:00am EST

Swiss finance giant UBS has hired a team of high-producing brokers away from Bank of America Corp. to launch a new wealth-management office in Charlotte.

The new UBS operation will serve as a satellite to the firm’s Atlanta private wealth-management office. It will focus on serving clients with at least $10 million in investable assets, the first UBS office in the Carolinas to serve that segment. The team will be led by C. Harvey Rice, a veteran broker and adviser at BofA’s U.S. Trust private-banking unit.

Jason Chandler, head of UBS Private Wealth Management, says his business line serving wealthy families has been UBS’ fastest-growing segment during the past year in terms of revenue and new client assets. Opening the Charlotte office is part of a push to grow the business in large cities across the country.

An office in Seattle recently opened and another is planned for Philadelphia. UBS already operates private-wealth offices in major East Coast markets, including New York, Boston, Washington, Atlanta and South Florida.

“We really had a vacancy in the Carolinas,” Chandler says. “And it was an obvious decision to open in Charlotte.”

Chandler says Charlotte and its surrounding communities rank in the nation’s top 30 wealth markets. He compares it with Denver and Seattle. Charlotte households worth at least $1 million have $54 billion in assets. And the target market for the new office here — households with at least $10 million in investments — hold $12 billion in assets, Chandler says.

www.bizjournals.com/charlotte/print-edition/2011/02/04/ubs-adds-wealth-office-here.html

[sandi66]

Record Pay for Wall Street Executives in 2010

by Tom Eley

Global Research, February 4, 2011

While the great majority of the American population is suffering from the consequences of mass unemployment, pay-cutting, record foreclosures, and ruthless cuts to all forms of social spending, America’s corporate elite are flush with record pay and profits.



According to a new study by the Wall Street Journal, total compensation handed out to employees at publicly traded Wall Street banks hit a record $135 billion in 2010, an increase of 5.7 percent over the combined payout in 2009.



The $135 billion in “compensation” given to the lords and ladies of Wall Street is $10 billion more than the combined budget deficit of $125 billion facing 44 states and the District of Columbia for fiscal year 2012—budget deficits that will be used to cut funding for schools, food stamps for the hungry, health care for the poor and working class, and unemployment compensation for the jobless.



One firm, Bank of America, paid out $35.1 billion in compensation alone. The figure is equivalent to the combined budget deficits of California and Illinois, which are together home to 50 million people.



In compiling the data, the Wall Street Journal analyzed 2010 financial reports from 25 Wall Street banks with stock-market evaluation of at least $1 billion. The 25 have a combined value of $750 billion, or 85 percent of the banking industry’s stock market value.



The payout to executives was about one third of the total $417 billion in Wall Street bank revenue in 2010, another record. This figure, the financial haul of America’s 25 biggest banks, is about twice the size of the 2010 GDP of Egypt, with a population of 80 million.



For top bankers, eight-figure payouts are once again the norm. Lloyd Blankfein, CEO of Goldman Sachs, took home about $14.6 million in 2010, $12.6 million of it in the form of a corporate shares-based bonus. His pay package is about 340 times the median US income of $43,000.



The incomprehensible wealth making its way into the pockets of executives at publicly traded firms pales in comparison to the payouts given to the managers of hedge funds, investment groups generally only open to top investors who are even less subject to regulation than the finance industry as a whole.



One hedge fund manager, John Paulson, netted nearly $5 billion in personal profit in 2010. By way of comparison, with symphonies, museums, and parks being shut down across the country, Paulson’s income was about 31 times the $161 million Obama has proposed for 2011 funding for the National Endowment for the Arts, a $6 million cut from last year.



Several other hedge fund managers also received personal compensation in the billions, according to the Wall Street Journal. David Trapper of Appaloosa Management, Ray Dalio of Bridgewater Associates, and James Simons of Renaissance Technologies each made between $2 billion and $3 billion, it reports.



And how do these hedge fund managers “earn” this money? Paulson’s eponymous Paulson & Paulson Co. and other hedge funds “made winning bets on commodities,” including gold, according to the Journal. In other words, profiting from the “quantitative easing” bond buy-back program from the Federal Reserve Board, the hedge funds speculated in US Treasuries on one side, and foodstuffs and other commodities, on the other. This has resulted in a catastrophe for people the world over who can no longer afford the goods that sustain their lives.



For Paulson and his ilk, money is to be made on the way up and on the way down, by betting “short” on certain kinds of investments—and thus helping to precipitate crashes—and by going “long” on others. As the Journal notes, though a record, his “performance last year... paled in comparison to his 2007 returns, when Mr. Paulson made a huge wager against subprime mortgages and his funds scored gains of as much as 590 percent.”



Nonetheless, last year found the hedge-fund industry “back on its feet after a rough stretch,” the leading US business newspaper explains. “Assets managed by hedge funds have grown to a near-record $1.92 trillion, up 20 percent over the past year. Assets jumped almost $150 billion in the fourth quarter alone, the largest quarterly growth on record, according to Hedge Fund Research, Inc.”



On Tuesday, the Dow Jones Industrial Average, the most prominent measure of US securities, crossed 12,000 points for the first time since June of 2008, largely based on a steady stream of record corporate profit reports in recent weeks. Share values are up an astonishing 84 percent since their post-financial crisis nadir of March 2009.



The “turnaround” since March 2009, which has been solely to the benefit of the financial elite, is not due to the mysterious workings of the market but to the conscious intervention of the Obama administration.



That month, with the DJIA nearing 6,000, Obama intervened with a series of pro-corporate policies in rapid-fire succession. He scuttled a bill passed by the House of Representatives that would have imposed mild limits on the pay of bank executives. Then Treasury Secretary Timothy Geithner made public White House plans to deepen the bank bailout by buying up more, potentially unlimited, “toxic assets” at public expense. Finally, that month Obama rejected the turnaround plans submitted by General Motors and Chrysler, driving the firms into bankruptcy in order to carry through deeper cuts in jobs, wages and benefits of autoworkers and retirees.



The moves of March 2009 set a pattern for what has followed: on the one side, unrestrained corporate greed and the monopolization of an ever-greater share of the national wealth by the financial elite, and on the other an unprecedented assault on the living conditions of the working class both through wage-cutting and layoffs, and through cuts to social spending.



Obama’s aim, to the exclusion of all others, is to protect and enhance the wealth of America’s financial aristocracy. Only this can explain his surreal State of the Union address, in which he disregarded the enormous social misery in the US and boasted of having “broken the back of the recession,” because “the stock market has come roaring back [and] corporate profits are up.”

www.globalresearch.ca/index.php?context=va&aid=23064

[sandi66]

PM and U.S. President Obama announce shared vision for perimeter security and economic competitiveness between Canada and the United States
Leaders also create bilateral Regulatory Cooperation Council (RCC) to reduce red tape for businesses
4 February 2011
Washington, D.C.

Prime Minister Stephen Harper and U.S. President Barack Obama today issued a Declaration on a Shared Vision for Perimeter Security and Economic Competitiveness. The Declaration establishes a new long-term partnership that will accelerate the legitimate flows of people and goods between both countries, while strengthening security and economic competitiveness. The two leaders also announced the creation of a U.S.-Canada Regulatory Cooperation Council (RCC) and received the Second Report to Leaders on the U.S.-Canada Clean Energy Dialogue (CED).

“This Declaration demonstrates the continued commitment of Canada and the United States to ensuring our common security, while supporting economic competitiveness, job creation and prosperity within a secure environment,” said the Prime Minister. “It builds on the remarkable security partnership between Canada and the United States that has helped keep our borders open to legitimate trade and travellers, and closed to criminal and terrorist elements.”

The Declaration will focus on four areas of co-operation: addressing threats early; trade facilitation, economic growth and jobs; integrated cross-border law enforcement; and critical infrastructure and cyber-security.

Canada and the U.S. will develop a joint action plan on perimeter security and economic competitiveness that will set out a range of initiatives in the four key areas to improve both countries’ ability to manage security risks, while facilitating the flow of people, goods and services.

A “Beyond the Border Working Group” composed of representatives from both governments will be established to implement and oversee work on the action plan.

“The Canada-U.S. partnership on security and economic competitiveness must evolve continually if we are to stay strong and address future security and commercial concerns,” added the Prime Minister. “This declaration sets the stage for more effective, long-term collaboration in these areas. It also respects the sovereignty of both countries and the privacy of our citizens.”

In addition to the Declaration, the two leaders also announced the creation of a United States-Canada Regulatory Cooperation Council (RCC) that will reduce red tape by making regulations in a range of sectors more compatible and less burdensome in both countries – which is especially important for small businesses.

“The review of these rules is an exceptional opportunity to break down regulatory barriers and prevent new ones from being introduced,” added the Prime Minister. “The main goal is to make it easier for Canadian and American firms to do business on both sides of our shared border, leading to more jobs and growth in both Canada and the U.S.“

Increased regulatory co-operation between Canada and the U.S. is expected to generate economic opportunities on both sides of the border, while improving the ability of regulatory agencies in both countries to achieve their objectives.

Prime Minister Harper and President Obama also received the Second Report to Leaders on the Clean Energy Dialogue (CED) which lays out progress achieved in 20 joint projects in such areas as solar energy, advanced biofuels, and carbon capture and storage. The purpose of the CED, which was announced in February 2009 by the two leaders, is to enhance collaboration between Canada and the U.S. on the development of clean energy technologies aimed at reducing greenhouse gases and combating climate change.

www.pm.gc.ca/eng/media.asp?category=1&pageId=26&id=3931

[sandi66]

Statement from Prime Minister's Office


Postmedia News February 4, 2011 3:35 PM Be the first to post a comment

Press release from office of Prime Minister Stephen Harper


"Mr. President, Ladies and gentlemen,


"Today President Obama and I are issuing a declaration on our border. But, it is of course, much more than that: It is a declaration on our relationship.


"Over the past nearly 200 years, our two countries have progressively developed the closest, warmest, most integrated and most successful relationship in the world. We are partners, neighbours, allies and most of all, we are true friends.


"In an age of expanding opportunities but also of grave dangers, we share fundamental interests and values, just as we face common challenges and threats.


"At the core of this friendship is the largest bilateral trading relationship in history. And, since the signing of the Canada-U.S. Free Trade Agreement - a milestone in the development of the modern era of globalization - that partnership has grown spectacularly.


"Not only is the U.S. Canada's major export market, Canada is also America's largest export market - larger than China, larger than Mexico, larger than Japan or all the countries of the European Union combined.


"Eight million jobs in the United States are supported by your trade with Canada. And Canada is the largest, the most secure, the most stable, and the friendliest supplier of all America's purchases: energy.


"It is in both our interests to ensure that our common border remains open and efficient. But it is just as critical that it remain secure, and in the hands of the vigilant and the dedicated.


"Just as we must continually work to ensure that inertia and bureaucratic sclerosis do not impair the legitimate flow of people, goods and services across our border, so too must we up our game to counter those seeking new ways to do us harm.


"And I say "us" because, as I have said before, a threat to the United States is a threat to Canada, to our trade, to our interests, to our values, and to our common civilization.


"Canada has no friends among America's enemies. And America has no better friend than Canada.


"The Declaration President Obama and I are issuing today commits our governments to find new ways to exclude terrorists and criminals who pose a threat to our peoples. It also commits us to finding ways to eliminate regulatory barriers to cross-border trade and travel, because simpler rules lead to lower costs for businesses and consumers, and ultimately to more jobs.


"Shared information, joint planning, compatible procedures and inspection technology will all be key tools.


"They make possible the effective risk management that will allow us to accelerate legitimate flows of people and goods between our countries, while strengthening our physical security and economic competitiveness.


"So we commit to expanding our management of the border to the concept of a North American perimeter, not to replace or eliminate the border, but where possible to streamline and decongest it.


"There is much work to do. The Declaration marks the start of this endeavour, not the end - an ambitious agenda between two countries, sovereign and able to act independently, when we so choose, according to our laws and aspirations.


"But always understanding this: that while a border defines two peoples, it need not divide them. That is the fundamental truth to which Canadians and Americans have borne witness for almost two centuries, and through our mutual devotion to freedom, democracy and justice, at home and abroad, it is the example we seek to demonstrate for all others."

www.canada.com/Statement+from+Prime+Minister+Office/4226445/story.html

[sandi66]

MerchantBridge, JP Morgan Executives Killed In Crash -Report

Published February 05, 2011

The chief executive of private-equity firm MerchantBridge and two executives at J.P. Morgan Chase & Co. (JPM) were among seven killed in a plane crash in Iraq, Reuters reported Saturday. MerchantBridge in a statement said CEO Basil Al-Rahim and Abdallah Lahoud, a partner, died when their plane crashed "in unknown circumstances over Iraq."


www.foxbusiness.com/markets/2011/02/05/merchantbridge-jp-morgan-executives-killed-crash-report/

[sandi66]

remember only a few days ago this was out...


Iraq appoints MerchantBridge to advise on the leasing of State-owned companies to the Private Sector

Iraq: Wednesday, January 21 - 2004 at 16:49

PRESS RELEASE.MerchantBridge & Co. Ltd., the merchant banking firm with offices in London, Bahrain and Baghdad, today announces that it has been appointed as the Lead Advisor to the Iraqi Ministry of Industry and Minerals for their Lease of Industrial Factories Programme.

The first phase of the Programme involves 35 factories in a number of sectors falling into four categories: i.- food and pharmaceuticals, ii. - construction materials and engineering, iii. - chemicals and iv. - textiles. Over 100 bids have already been received, a number of which are from international firms or from joint ventures between Iraqi and foreign firms.

His Excellency Mr. Mohamad Tawfiq Raheem, the Minister of Industry and Minerals, commented, "This high level of interest was very encouraging. It shows that our novel leasing programme has successfully set a precedent for bringing the private sector back into a large number of companies owned by the State."

The Lease Programme was initially launched in November 2003 and interested companies were invited to put in bids to lease the selected factories for periods of five years, or longer by mutual agreement between the Ministry and the lessee. The Programme is the first step in the direction of involving the private sector actively in the local economy, which was dominated by the state under the previous regime.

MerchantBridge is helping to refine the details of the Programme and assisting in the evaluation of bids and negotiations with the bidders. Basil Al-Rahim, Managing Director of MerchantBridge, stresses the importance of proper evaluation of the bids. "We will take into consideration several factors such as the reputation and experience of potential lessees, as well as their readiness to transfer technology and provide training and new investment. The selection process will be entirely transparent." Mr Al-Rahim is leading the MerchantBridge team, while day-to-day activities are managed by Eric le Blan a senior corporate financier in the firm.


www.ameinfo.com/33857.html

[sandi66]

MerchantBridge CEO, others die in Iraq plan crash
February 5, 2011 3:05 PM ET
SULAIMANIYAH, Iraq (AP) - Iraqi mobile phone company AsiaCell said Saturday that four businessmen, including the CEO of investment firm MerchantBridge & Co., were among seven people killed in a plane crash Friday in the country's north.

AsiaCell said in statement Saturday that three were guests of the fourth, an AsiaCell board member, Basil Rahim.

Rahim also was founder and CEO of London investment firm MerchantBridge & Co. Another MerchantBridge executive, Abdallah Lahoud, died in the crash, along with JP Morgan employees Morad Michal and Javier Zurita.

The crew — two Jordanians and a Lebanese — were also killed.

"Basil was an Iraqi investor that deeply loved his people and his country. He was an example of intelligence, loyalty and devotion and his loss will be truly felt across Iraq," Asiacell said in a statement.

MerchantBridge and JP Morgan could not be reached for comment Saturday.

The small plane's engine caught on fire shortly after taking off from the Sulaimaniyah airport in northern Iraq, officials said. Airport head Tahir Abdullah Qadir said the initial investigation indicated the plane had mechanical problems before crashing. It was headed to the Turkish capital of Ankara.

Sulaimaniyah is 160 miles (260 kilometres) northeast of Baghdad.

MerchantBridge was created in 1998 under the name Safron Group. It had $50 million in capital fully invested in Turkey, Morocco and Egypt. It changed its name to MerchantBridge in 2001 after a management buyout of the group and expanded a year later into corporate finance, government advisory and European direct investments.

It opened an office in Baghdad in 2003.

money.msn.com/business-news/article.aspx?feed=AP&date=20110205&id=12885645