depression

The 2011 Foreclosure Flood

Filed in BP, depression, Gold, GOld juniors, housing-market, Lear, o by on January 13, 2011 0 Comments
The 2011 Foreclosure Flood

It’s hardly news these days, but the latest numbers on foreclosures speak for themselves. Again, it proves that the bottom in housing is nowhere in sight. Here’s the latest… From the AP by Janna Herron entitled: 2011 to top 2010 record of 1 million foreclosures The bleakest year in the foreclosure crisis has only just begun. Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and industry experts say more people will miss payments because of job losses and also loans that exceed the value of the homes they are living in. “2011 is going to be the peak,” said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year. The blistering pace of foreclosures this year will top 2010, when a record 1 million homes were lost, RealtyTrac said Thursday. One in every 45 U.S. households received a foreclosure filing last year, a record 2.9 million of them. That’s up 1.67 percent from 2009. Foreclosures are expected to remain elevated throughout the year, pushing home prices down another 5 percent nationally before finally bottoming out. More than half of the country’s foreclosure activity came out of five states in 2010: California, Florida, Arizona, Illinois and Michigan. Together, these states recorded almost 1.5 million households receiving a filing, despite year-over-year decreases in California, Florida and Arizona. The toxic stew grows… By the way, The Zillow Home Value Index has now fallen 26% since its peak in June 2006. That’s more than the 25.9% decline in the Depression-era years between 1928 and 1933. Related Articles: 2011 Housing Market Forecast Case-Shiller Index Screams Housing Double Dip Meredith Whitney Predicts a Housing Double-Dip Zandi: Expect 8% Home Price Declines To learn more about Wealth Daily click here Advertisement American OPEC We’re about to buck the peak oil trend. It’s all about shale oil these days, and if you play the right stock, you could easily see your investment double in a matter of weeks. I’ve found one little-known company that is able to double the amount of oil we get from shale reserves… Here’s how to get your share of these underground profits. The 2011 Foreclosure Flood originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Big Ben’s Stimulus Party: Only the Top 20% Received an Invite

Big Ben’s Stimulus Party: Only the Top 20% Received an Invite

What if they threw a recovery party and only the top 20% showed up? It looks like we are about to find out….. From the Telegraph by Ambrose Evans-Pritchard entitled: Deepening crisis traps America’s have nots “ The US is drifting from a financial crisis to a deeper and more insidious social crisis. Self-congratulation by the US authorities that they have this time avoided a repeat of the 1930s is premature. There is a telling detail in the US retail chain store data for December. Stephen Lewis from Monument Securities points out that luxury outlets saw an 8.1pc rise from a year ago, but discount stores catering to America’s poorer half rose just 1.2pc. Tiffany’s, Nordstrom, and Saks Fifth Avenue are booming. Sales of Cadillac cars have jumped 35pc, while Porsche’s US sales are up 29pc. Cartier and Louis Vuitton have helped boost the luxury goods stock index by almost 50pc since October. Yet Best Buy, Target, and Walmart have languished. Such is the blighted fruit of Federal Reserve policy. The Fed no longer even denies that the purpose of its latest blast of bond purchases, or QE2, is to drive up Wall Street, perhaps because it has so signally failed to achieve its other purpose of driving down borrowing costs. Yet surely Ben Bernanke’s `trickle down’ strategy risks corroding America’s ethic of solidarity long before it does much to help America’s poor. The retail data can be quirky but…

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It’s Time for Bernanke to Just Go Away

This was taken from Wealth Wire, which you can still sign up for here … It’s FREE! Enjoy. I have no confidence in Ben Bernanke… I don’t care what degrees he holds, or what he studied about the Great Depression. He’s done nothing but take us to the abyss… and lie to us, all to save the financial system. He doesn’t beleive inflation is a problem. But it is. He said he’s not monetizing debt. But he is. He’s willing to continue further easing as long until unemployment improves… but it’ll do nothing more than hurt us more. And now he wants us to believe a recovery is sustainable. Too bad he’s wrong. Here’s more from Reuters: “The U.S. economy may be finally hitting its stride, even if growth remains too weak to put a real dent in the nation’s jobless rate, Federal Reserve Chairman Ben Bernanke said on Friday. Offering no real clues on the future direction of monetary policy, Bernanke sounded cautiously more upbeat than he had in his most recent public remarks, citing improvements in consumer spending and a drop in claims for jobless benefits as hopeful signs that a languid recovery was perking up. “We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold,” the central bank chief said in his first testimony to Congress since the Fed launched a controversial plan to buy an additional $600 billion in government bonds. His remarks were made public just an hour after the Labor Department reported the economy generated a disappointing 103,000 jobs in December. The jobless rate dropped to 9.4 percent from 9.8 percent, but the decline was partly due to a troubling rise in the number of people exiting the workforce. Just a month ago, in an interview on the CBS program “60 Minutes”, Bernanke had voiced a degree of trepidation about the economy’s

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The End of the U.S. Dollar

The End of the U.S. Dollar

Much of my investing decisions over the past ten years have been guided by watching the U.S. governments abuse the dollar into its current near-worthless state. This has brought me to one basic conclusion… Politicians, on both sides of the aisle, are not trustworthy or credible individuals. They are power seekers, liars, hoodwinkers, and bamboozlers. They’ll do and say anything to get you to hand your power over to them— i.e. vote them into office. And until a majority of Americans come to this understanding, nothing can fundamentally change within the country. Unfortunately, it may be too late to save the U.S. dollar. The truth is the unsustainable economic course that has been pursued (and continues to be pursued) by the politicos in the United States may have financially doomed the country. The two-party system of republican and democratic criminals that has been put in charge of running the U.S. the past 40 years has failed you. Whether they did it on purpose or not, the system is dying on the vine. The problems that stem from four decades of out-of-control spending on the part of the Congress are cleverly being covered up. Their methods for keeping the public in the dark while promising unsuspecting voters lavish gifts from the public treasury are three-fold: Increasing deficits. Increasing monetary expansion of the fiat currency. Lying about and falsifying the real economic numbers. Because the voters don’t keep the politicians accountable, a false sense of prosperity reigns over the country as this fiat money pulses through the economy. Meanwhile, government officials are given accolades instead of being punished for their transgression. Hell, they gave Obama the Nobel Peace Prize! The problem, in a nutshell, was outlined with surprising clarity a few weeks ago by none other than Fed bankster Ben Bernanke himself as he addressed Congress… He spoke on the looming fiscal crisis of the Federal government; basically, there will be no easy way to avoid it. Congress has to decide what spending to cut. This means Congress must decide which special interest groups to alienate. Then they must decide which taxes to raise. Economic reality is standing on our doorstep Congress has been deferring this two-part decision ever since the Johnson Administration. One republican and democratic administration after another have played kick the can, opting in every case to push the problem into the future for others to deal with by simply creating more money out of thin air and pumping it into the system. Unfortunately, the time has come for the United States to pay for the consequences of this abuse. The national debt in the U.S. is now approaching $14 trillion— if you believe in trusting the government’s numbers. The unfunded debts of the U.S. are over $50 trillion. In reality, both of these numbers are grossly understated through government shenanigans, but you get the point. There’s no way either of these debts will ever be paid off. They’ll have to be…

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Federal Reserve Gave 9 Trillion Worth of Emergency Loans to Major Banks At Near Zero Interest Rates

Filed in Bank Gold, depression, economy, Federal Reserve, Gold Spot Market, o by on December 1, 2010 0 Comments

Today, the private Federal Reserve was forced to reveal that they loaned upwards of 9 trillion dollars to major financial institutions in emergency overnight loans. These loans were done in complete secret, used to “save” the economy, which had slip into a deep staged economic depression. Most of the money has been paid back, yet the interest rates that these major institutions received were near ZERO. That’s right, The Federal Reserve bailed out their partners on Wall Street at near zero interests rates while everyday American citizens have been continually blasted by high interests rates around every corner.

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The Fed Thinks you’re Stupid

Consumer prices are going up… but there’s no inflation, says the Fed. Not only do they want you to believe that, they want you to believe they’ll never monetize debt – another lie Wealth Daily has pointed out. Today, even as consumer prices “rose moderately,” there was little sign of inflation because auto, clothing and hotel prices fell. Well woop-dee-friggin-doo… energy and food weren’t accounted for in the core number. And, according to “experts,” “ Fears about a potential outbreak of inflation from the Fed’s recent moves are massively overblown and are completely out of sync with the reality of extremely competitive markets for … products and services,” said Brian Bethune, an economist at IHS Global Insight. Are they kidding? Or are they just this nave? Even a Wal-Mart survey says inflation is here . As the Wall Street Journal points out, “Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they’ll try to make consumers shoulder more of the higher costs for ingredients.” Food prices are actually rising faster than inflation numbers. CPI, which excludes food and energy, was up 0.8% to its lowest 12-month increase since March 1961. Unfortunately, the food index was up 1.4%. And the U.S. Agricultural Department is predicted overall food inflation of about 2% to 3%, says The Reformed Broker. Let’s take a look back at what I said recently in Wealth Daily. In the months since Bernanke told us QE1 would not jeopardize the stability of prices, the price of oats is up 40%. Orange juice is up 45%… rice is up 50%… coffee is up 60%… copper is up 70%… and silver is up 100%. Passing the price to consumers The prices are, and will continue to be, passed on to consumers. Kraft just told investors about half of the company’s input costs have spiked 20% to 30% year over year, and the company had to raise prices on consumers. Just last week, Kraft Foods (KFT) posted a 26% rise in Q3 revenue; however, due to rising material costs, profits fell close to nine percent. Plus, Kraft is hiking prices some 40% shortly… Kroger announced it would have to raise prices. McDonald’s, Safeway, and Domino’s are all doing the same. General Mills is raising prices by “low digits” on 25% of its cereals on November 15. For crying out loud, bacon is up 16% in September 2010 from September 2009. Even UPS just announced it was raising shipping rates an average of 4.9% in January. Is it possible all these companies lost Ben’s memo that inflation was under control? All Bernanke has managed to do iscreate an environment where companies are forced to raise prices… And it’ll only get worse, as the dollar drifts lower. Bill Gross, for example, thinks the dollar will fall another 20% if the Fed continues this monetary easing policy. Companies are paying more for the things that produce the things you buy. When the prices you pay go up, that’s inflation. That’s what’s happening right now, even as you read this. Cat’s …

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Consumer’s Revolt, Shun the Chains of Debt

Consumer’s Revolt, Shun the Chains of Debt

As I discussed in this article, you can lead a horse to water but you can’t make him drink. That’s where the ultimate sticking point is for the Fed — especially in an economy where consumption is 70% of GDP. Because while the Fed can force money into the system in exchange for government bonds, they can’t necessarily make the money circulate to create new goods or more importantly, new jobs. In short, that leaves the Fed essentially “pushing on a string” while commodity prices rise across the board. Meanwhile, consumers are refusing to go along with the Fed’s ongoing effort to hook them on even more heroin… From Bloomberg by Caroline Salas entitled: U.S. Household Debt Shrank 0.9% in Third Quarter, Fed says. “ U.S. households cut their debt last quarter, borrowing less against homes and closing credit card accounts, according to a survey by the Federal Reserve Bank of New York. Consumer indebtedness totaled $11.6 trillion at the end of September, down $110 billion, or 0.9 percent from the end of June, according to the New York Fed’s quarterly report on household debt and credit. Households have slashed about $1 trillion from outstanding consumer debts since the peak in the third quarter of 2008, the New York Fed said. U.S. households, facing a jobless rate that’s persisted near a 26-year high, have slashed debt and increased savings following the worst financial crisis since the Great Depression. That’s pared consumer spending and slowed the economic recovery, helping to prompt the Fed’s decision last week to start another round of unconventional monetary stimulus. “ Consumer debt is declining but only part of the reduction is attributable to defaults or charge-offs,” Donghoon Lee, a senior economist at the New York Fed, said in a statement. “Americans are borrowing less and paying off more debt than in the recent past. This change, which we continue to study carefully, can be a result of both tightening credit standards and voluntary changes in saving behavior.” Individuals paying off their debt crimped their cash flow by about $150 billion in 2009, the New York Fed said. Between 2000 and 2007 borrowing increased consumers’ cash flow by $300 billion a year, according to the district bank.” Needless to say, the borrow and consume model is has seen better days. Phony is as phony does. Related Articles: Hoenig: QE2 May Lead to “future instability” Agflation is Here: Hate to Say I told you So… Hoenig: QE2 Won’t Work Jim Grant on the Fed’s “Mission Creep” Jim Grant: “The Fed is out of its lane” To learn more about Wealth Daily click here Advertisement Masamune’s Secret Metal Six centuries ago, a Japanese sword master accidentally dropped some into the steel he was making… creating the first ever true Samurai Katana blade. Today, it’s the cornerstone of a $987 billion-a-year industry. Find out how you can bank up to 2682% as one tiny mining company taps into one of the world’s last remaining untouched deposits. Consumer’s Revolt, Shun the Chains of Debt originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Bernanke Has Lost All Credibility

Bernanke Has Lost All Credibility

On June 3, 2009, Fed Chairman Ben Bernanke made a simple statement before Congress, under oath: “The Federal Reserve will not monetize the debt.” Oops. If any doubt remained that the Fed will do just that, Dallas Fed President Richard Fisher squelched it last Friday when he bluntly stated in a speech , “For the next eight months, the nation’s central bank will be monetizing the federal debt.” Zing. As I see it, there are two possible explanations for Mr. Bernanke’s mis-statement : He lied. He’s a vacuous bank-puppet with absolutely no business running a donut shop, let alone the Federal Reserve. I can’t decide which is worse… Either way, a good old fashioned impeaching is definitely in order. It won’t happen, of course. But a man can dream, can’t he? The good news is that Bernanke’s credibility is stretched razor-thin at this point. If you aren’t convinced yet, watch this video on YouTube. Eventually, the banksters will be exposed and restrained. Hopefully that happens sooner rather than later. Unfortunately, we’ll need a big catalyst to spur real change; that catalyst will probably not be something pleasant. At least we won’t have to suffer through more ridiculous editorials about Fed “exit strategies.” There is no exit strategy— only a desperate fight to prop up TBTF banks at all costs. Extend and pretend, the bonuses must flow. Wall Street firms will pay out a record $144 billion of them this year, by the way. Savers and retirees will continue to bear the brunt of this greed and recklessness, another point Mr. Fisher slammed home in his speech: But I take no comfort, and see considerable risk, in conducting monetary policy that has the consequence of transferring income from the poor and the worker and the saver to the rich. Senior citizens and others who saved and played by the rules are earning nothing on their savings, while big debtors and too-big-to-fail oligopoly banks benefit from their subsidy. It is refreshing to see such blunt criticism coming from a sitting Fed President, but Mr. Fisher and his hawkish allies are hopelessly outnumbered by doves at the Fed. Bernanke and William Dudley (NY Fed Pres, Goldman alum) run the show for now. As long as they do, the beatings printing will continue. When inflation rears its ugly head, they’ll sheepishly defend their actions as “necessary to prevent yet another Great Depression”; that they “couldn’t have seen it coming,” and things would have been unfathomably worse, had they not acted. It’s a easy argument for them to make, as it is impossible to disprove. The precious metals owner’s conundrum As much as I despise the…

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Your Wallet and the 2010 Election Tsunami

Filed in depression, economy, GOld juniors, mongolia by on November 3, 2010 0 Comments

It wasn’t exactly pitch forks and torches yesterday, but after an election cycle of heated debates, the electoral tsunami finally arrived. Using the power of the ballot box, Americans decided to rearrange the map again — proving the anti-establishment wave is as deep and powerful as it has ever been. And while neither camp can actually claim the high ground this morning, the good news for investors is the divided government that will follow in its wake. After all, equity markets have historically favored gridlock by a pretty wide margin… In fact since 1970, the S&P 500 has grown at a median rate of 13.5% per year in the face of divided government, versus a gain of just 9% during times of one-party control. Now how about those tax cuts? In the meantime, though, the lame duck session is chock-full of question marks, namely in regards to the tax cuts. As I wrote back in July, the tax hammer is about to fall. Without action, Uncle Sam will be at it again, doing his best to separate you from your money when the ball drops in Times Square—regardless of what happened in yesterday’s election… And like a great hurricane off somewhere in the Atlantic, the storm will finally arrive. When it does, you’ll have less money in your pocket to stare down the worst economy since the Great Depression. If Congress fails to act, the income tax rate clock will be turned back to the higher levels of June 2001. Thus, U.S. employers across the country are already beginning to prepare their employees for much smaller paychecks as the tax question still goes unanswered… According to calculations by H&R Block, married couples with an income of $80,000 can look forward to $442.96 less in their paychecks each month …

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Doug Casey on the Tea Party Movement

Louis: So, Doug, about the Tea Party? Doug: Consider what seems to be brewing in the Tea Party movement. It’s just a straw in the wind, of no real significance itself, but a foreshadowing of something ominous. All the false hope this Tea Party movement is creating impresses me as similar to what was going on in France in the late 1780s… L: I think I can guess, but why do you say that? As much as you dislike the government, isn’t it a good thing that so many people are finally fed up with it and at long last are showing signs of willingness to throw the bums out? Doug: Well, you know I don’t like making predictions, so I’m not prepared to say that it’s a terrible thing, but it’s at least a double-edged sword. Of course it’s nice to see that there are people out there who are unhappy with the status quo, with the so-called two-party system, and with the Republican party in particular. But the process of “throwing the bums out” has gone on since Day One, and it’s accomplished absolutely nothing. The system itself has degraded hugely. And more than ever before, government draws the absolute worst type of people and totally corrupts those who might be decent. That’s because government is so overwhelmingly powerful today. L: Power corrupts, absolute power corrupts absolutely. But why the Republicans in…

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The QE2 Rap Song

Filed in ben bernanke, depression, GOld juniors, Gold Market, lead, Ron Paul, ubs by on October 22, 2010 0 Comments

Rap is not exactly my style, but this is one I can understand all the way. It’s edgy and dead spot on. Remember that as you stare at the ceiling all night wrestling with the ghost of Tom Joad. After all, this was no boating accident. That being said here’s a video from a year ago that makes more sense everyday…. The battle rages on. Hayek is right by the way, speculative bubbles lead to malinvestment—big time. Just think what we could have done with the trillions spent on McMansions, granite countertops, and hot tubs. Related Articles: Ron Paul vs. Ben Bernanke Ron Paul: End The Fed Hoenig: QE2 Won’t Work Ben Plans, Markets Laugh To learn more about Wealth Daily click here Advertisement More than 12 times your money by 2012 The analyst who’s shown you an 86.6% “win” ratio on energy plays of as much as 225%, 373%, and 452% reveals the NEXT big North American oil winner… 1,239% gains by 2012 await those who click here now and get in on this high-tech $4-a-share driller before word gets out to the mainstream money media. The QE2 Rap Song originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Asiatic Adventurism, Part II

To follow up on the conversation we began the other day… Mr. Obama needs a short, victorious war before the election, but those are thin on the ground unless your name was Moshe Dyan or Golda Meir. Looking at the quotes I have to work with today, I think Barack’s found his war. Unfortunately, the Chinese are going to win it and the figures will come cascading down rapidly, perhaps in time to stampede whatever portion of the electorate isn’t already on the prod. China isn’t taking kindly to making its products less competitive by adding large tariffs (any more than it does to demands that it revalue its currency), and the very rapid reply to Mr. Obama’s U.N. meeting and the new house bill was to strike swiftly at major US manufacturers. We have to admire their style, none of that tough talk stuff, a simple, polite, “the Chinese government announced Sunday ( Ed. Note: a week ago) that it is launching a probe into (the) possibility of the U.S. dumping auto parts and chickens on the Chinese market.” Those in the know had no difficulty reading that as “We have Tyson Foods, Pilgrim, Goodyear, and Cooper Tire & Rubber in our crosshairs, and that’s just for starters.” Somewhere here I had a dignified retort that adjusting the exchange rate by 20% would drive many Chinese firms out of business, which certainly makes sense on the margins they’re working on. The Smoot-Hawley Tariff Act of 1930 raised import duties to record highs and was a large contributing factor in the length and depth of the Great Depression. Protectionism never works out the way proponents think it will. There are those saying “there, there, now.” “Michael Strauss, chief economist with Commonfund, a money management firm based in Wilton, Conn. said there is not going to be a repeat of the mistakes of Smoot-Hawley. Strauss said both the U.S. and Chinese are smart enough students of economic history to know that the last thing the world needs now is for arguably the two most important economic powers to turn a spat over tires and chickens into something that could derail a global rebound. ‘This is not that big of …

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