Socio-Economics History Blog

Socio-Economics & History Commentary

Manhatten – Apartment Buyers Abandoning 6-Figure Deposits

  • The New York Times reports :
      
    THE real estate market in Manhattan has become so unnerving to buyers that some are forfeiting six-figure deposits rather than close on deals they have made.
     

    At 304 Spring Street, a sleek condominium building in Soho with stunning Hudson River views, the buyer for the duplex penthouse recently decided he would not go through with the deal and walked away from a $780,000 deposit.
     
    At 1120 Park Avenue, a classic prewar co-op filled with multimillion-dollar apartments, it appears that a buyer forfeited a deposit of as much as $1.1 million.
     
    Real estate agents representing buyers of at least three other multimillion-dollar properties also report clients who knowingly left deposits of more than $1 million or hundreds of thousands of dollars on the table.
     
    In each case, the buyers had signed their contracts before the financial meltdown last fall, but decided in recent months that because values in the luxury real estate market have dropped 20 to 40 percent, it no longer made sense to go through with their deals.
     
    Sam Chandan, the president of Real Estate Economics, a research company in New York, said the fact that people were forfeiting such large deposits was “indicative of the degree of uncertainty in the market.”
     
    Given how difficult it has become in recent months to get a mortgage, he said, even buyers at the high end may be concerned about getting financing to complete their deals.
     
    And because the volume of sales has dropped to a trickle in the luxury market, “there are so few comps that it’s hard to even know what a property is worth,” he said, referring to comparable-sales data. “That uncertainty undermines people’s sense of what the actual value might be, so they’re taking actions designed to limit their exposure.”
     
    In some cases, agents say, buyers who signed contracts before the market started to fall have managed to renegotiate the sales prices to reflect the current market more accurately.
     
    Frederick W. Peters, the president of Warburg Realty, said his agency had had two multimillion-dollar deals in which buyers had forfeited six-figure deposits. “In both cases,” he explained, “the buyers felt that any renegotiation wasn’t going to satisfy them and they preferred to remove themselves from the market for a while.”
     
    Their decisions, he added, were “driven by the fact it’s a new world and they were not sure what they wanted to do with their resources in the face of that.” When they re-enter the market, Mr. Peters said, they will very likely be able to buy similar properties at prices low enough “that they will still have saved money, even after walking away from their deposits.”
       
  • This is 1 for the record books! How scared are you when you walk away from a 6 figure amount ? Very very very scared! Why not just hold it for the long run? Wealthy buyers should not have any problems hanging on right? Unless they expect it to go alot alot lower!

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February 28, 2009 Posted by | Economics | , , , | Comments Off on Manhatten – Apartment Buyers Abandoning 6-Figure Deposits

Moody’s – Tidal Wave of Debt Defaults!

  • Can there be any doubt that we are in the 21st Century Great Depression? Even the MSM has come around to admitting it. Moody’s predicts default rate will exceed peaks hit in Great Depression :
      
    A bigger proportion of non-investment grade companies will go bust in the US and overseas in the coming years than during the Great Depression, according to Moody’s, one of the world’s foremost experts on credit. 
     
    In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody’s said it anticipated a tidal wave of defaults was approaching.
     
    It said that in the coming months more than 15pc of speculative-grade bonds and loans – all but the most highly-rated – would default on their debts.
     
    This peak is even higher than the peak reached in 1933, when bank after bank throughout America was collapsing, taking hoards of other companies with them. Back then, the default rate peaked at 15.4pc; moreover these companies were former investment grade issuers regarded as more reliable credit prospects than their contemporary counterparts.
     
    Kenneth Emery, senior vice president at Moody’s said: “The three main drivers of the forecasting model are forecasts for the high-yield bond spread and the unemployment rate, along with the current level of issuer ratings. In the fourth quarter, the high yield bond spread reached unprecedented levels; and we’ve got an unemployment forecast approaching 9pc this year and issuer ratings at record low levels.
     
    “We certainly think that this credit cycle will be worse than the last two in the early 1990s and 2000s. In fact, in 2009 we expect to see the largest number of defaults since the advent of high yield bond market in the early 1980s. And the default rate for non-investment grade bonds may reach levels even higher than those registered during the Great Depression.
     
    “There are risks here because we are in unchartered territory, but the model forecast is that roughly 15pc of our speculative-grade issuers globally will default in 2009. In Europe the forecast default rate is even higher at close to 19pc.”
     
    The report traced the health of the bond market all the way back to the 1920s, and finds that the threat of companies defaulting is more stark now than at any point in that stretch of time. It predicted that company defaults will triple this year to about 300, after 101 defaulted last year on more than $280bn of debt.
     
    If the economy deteriorates by even more than expected, the default rate could conceivably mount to around 20pc, Moody’s added – meaning around one in five of all non-investment grade issuers default, something which has never happened before. The companies most at risk of default are consumer transport groups, which largely constitute airlines, media companies and car manufacturers. 
     
  • All these ‘wonderful’ rating agencies, that rated sub prime loans as ‘AAA’, are now openly admitting the direness of this depression. No more spin and “let us be positive!”.  This is a sign that the world is getting very very close to a cataclysmic collapse! Anyone who denies it at such a late stage will look like a fool ! They will lose credibility.
     
  • This will be worse than the 1929 Great Depression. 1 in 3 companies will go bust!  1 in 4 people will be unemployed. Maybe even a 30% unemployment rate. We just need to look at the real economic statistics and not just those massaged by governments.

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February 28, 2009 Posted by | Economics | , , , , | 1 Comment

World is on the Brink of Disaster! On the Path to World War 3 ?

ww3

  • Those who do not learn from history are bound to repeat it. The Great Depression of 1929 led to World War 2. Is the world headed towards another World War? Quite a few historians and economists say that the world really got out of the Great Depression when World War 2 started.
     
  • Dr. Frederic F. Clairmont writes in Is A Major War A Possibility In 2009? The Historical Antecedents :
      
    Some of you have evoked the possibility of a world conflict in the course of 2009.. I shan’t say that this prediction is far-fetched; or remote. Doubtless, many of you do not mean a regional conflict as in Ossetia and Gaza . Nor do I exclude the possibility of the US / Israel on Iran . In the making of war, madness can never be excluded. Let us keep in mind that the US caste oligarchy (USCO) and its trillion dollar militarist appendage is at war on several front in areas engulfing tens of thousands of kilometers: It is pursuing a war in Gaza via its surrogate; it is pursuing a war in Iraq; and of course it is escalating its military drive in Afghanistan; it has extended its killing fields to Pakistan. Recall that Pakistan has a frontier of 2,500 kms with Afghanistan .
      …..
    The USCO and its military lackeys has been at war since 1945 non- stop. And that includes its role in the Chinese Civil War that ended in 1949, in Indochina since 1945, in Korea , in Iraq twice over.etc. Its colonial wars fought exclusively against peoples of colour have driven the US economy into a state of bankruptcy.
     
    At the latest count, it has 250 military bases outside the United States . It is spending more than it earns. It is the world’s biggest mendicant. It is spending other people’s borrowed money. In Iraq alone, according to the figures of Stiglitz, the number is $3.5 trillion and the wars are not yet over. In these wars it has slaughtered millions. It is fighting wars in Iraq , Afghanistan , Pakistan and Israel ’s attack against Gaza , as in Lebanon , was inconceivable without US support. This is a banality. Let me say that the phosphor bombs used in Gaza were made in Virginia . The uranium enriched artillery shells were manufactured in Tennessee . The bombers were F-18’s of American fabrication. Gaza was one more testing ground for its weapons of mass slaughter. That makes four wars. Some are right to stress that wars, preparations of wars, boosts output and employment. What matters here is the nature of the output and its related employment impact. It is unproductive and does not add to productive capacity.
     
    This was certainly the case of Hitler’s Third Reich in which arms outlays provided a booster that eliminated the ranks of the jobless. And of course the jobless could always find jobs in the Wehrmacht subsequently transformed into cannon fodder. This was true of the U K from 1937 onwards. As you recognize the changes wrought by FDR’s New Deal , admirable but illusory in several ways, did not curtail the Great Depression. What did the job was massive public sector war expenditures bankrolled by debt.
     
    Let me repeat that what ended that satanic slump triggered in 29 was the advent of World War 2. Can it therefore be suggested that war and preparations for war offers a ‘final solution’ for achieving full employment?

     
  • The trigger for a 3rd World War is any bodys’ guess. Could US-Israel start a war with Iran that leads to it? The soon to be Prime Minister of Israel: Binyamin Netanyahu is intent on attacking Iran :
     
    We know who the Netanyahu/Lieberman duo is . There is nothing nebulous in their blueprint. “My highest priority” Netanyahu thunders “is Iran ”. Need we say more? Has Obama plumbed the meaning of that statement? There is nothing cryptic about it. The duo’s unrivaled standing in the Zionist lobbies and in the dominant spheres of the USCO the US is high. Hence we cannot ignore the possibility that in their desperation they could trigger a wider war. Such a course could not be confined to the region.
     
    The goal of US imperialism, conflated with that of Israel , is the destruction of Iran , the ally of both Hamas and Hezbollah. This is not speculation. It is stated policy. The Iranian prime minister has pushed his pawns. The game has started. The launching of their satellite into space injects into our calculations new and terrible variables.
     
  • What is not often considered is a potential conflict between US and China. Dr Clairmont again :
     
    China and the US
    Before I proceed, however, to examine whether mounting trade and payment tensions could lead to a deadly military confrontation we should remind ourselves of the nature of the trade rivalries and weapons deployed in those economic wars in the thirties. The speech of the Chinese president lambasting the United in Davos , as did Putin, is indicative of the drift of economic war. Davos is the pivot of globalization. It is the cockpit of corporate power, of world leaders and aspiring leaders. Davos underlined the penurious fragility of financial institutions once regarded as the bedrock of the system.
     
    Words as stability and confidence have been wiped out from their slate. The debacle of UBS and of The City and the ongoing tremors in Wall Street , matched by such spectacular swindlers as Madoff and Stanford The anger can no longer be dissimulated nor more than it can be concealed in the mass labour demonstrations in Paris and all French cities and in the neo-colony of Guadeloupe. The tensions are mounting. They go beyond beggar-my-neighbour policies first created by Joan Robinson of Cambridge University in the thirties’.
     
    No where was the nature of these conflicts more clearly delineated than by Sir Percy Bates, chairman of the Cunard Steamship Company (April 1935) at a moment when the Great Depression raged. Its relevance to our times is all too obvious: 

“We are going through a war…The arms that are being employed are not battleships, armies, aircraft, but tariffs, quotas and currencies. No international monetary standard is recognized, and every time that a tariff, quota or a currency varies, one is confronted with a manoeuvre, a hostile manoeuvre, a war manoeuvre. The worst of all is the reluctance to admit officially the existence of a state of war.”

  • Putin and the Chinese president have openly lambasted the US in Davos Switzerland. It is clear the USD hegemony of the past 60+ years is breaking apart. What is not apparent to many is the fact that since July 2008 the economic collapse and the strength of the USD is causing the collapse of many Eastern European countries. There is an economic war going on. Eastern Europe will soon be ‘conquered’ by Western Europe.
     
  • This escalating worldwide economic collapse will result in conquest of many smaller countries/nations. They may appear to stand alone after this crisis. But they will be greatly indebted to the central banking cartel that rules the western world. This shadow government/power is the real ruler behind the western world. It controls political parties via its control of money and the economy.
     
  • Every day throughout the world, we hear of more unrest, riots, violent protests …. Michael Klare (professor of peace and world security studies at Hampshire College and the author of “Resource Wars,” “Blood and Oil,” and “Rising Powers, Shrinking Planet: The New Geopolitics of Energy.” ) writes in We’re on the brink of disaster :
      
    Violent protests and riots are breaking out everywhere as economies collapse and governments fail. War is bound to follow.
     
    The global economic meltdown has already caused bank failures, bankruptcies, plant closings and foreclosures and will, in the coming year, leave many tens of millions unemployed across the planet. But another perilous consequence of the crash of 2008 has only recently made its appearance: increased civil unrest and ethnic strife. Someday, perhaps, war may follow.
     
    As people lose confidence in the ability of markets and governments to solve the global crisis, they are likely to erupt into violent protests or to assault others they deem responsible for their plight, including government officials, plant managers, landlords, immigrants and ethnic minorities. (The list could, in the future, prove long and unnerving.) If the present economic disaster turns into what President Obama has referred to as a “lost decade,” the result could be a global landscape filled with economically fueled upheavals.
     
    Indeed, if you want to be grimly impressed, hang a world map on your wall and start inserting red pins where violent episodes have already occurred. Athens (Greece), Longnan (China), Port-au-Prince (Haiti), Riga (Latvia), Santa Cruz (Bolivia), Sofia (Bulgaria), Vilnius (Lithuania) and Vladivostok (Russia) would be a start. Many other cities from Reykjavik, Paris, Rome and Zaragoza to Moscow and Dublin have witnessed huge protests over rising unemployment and falling wages that remained orderly thanks in part to the presence of vast numbers of riot police. If you inserted orange pins at these locations — none as yet in the United States — your map would already look aflame with activity. And if you’re a gambling man or woman, it’s a safe bet that this map will soon be far better populated with red and orange pins.

       …..
     …… Blair did not specify which countries he had in mind when he spoke of “regime-threatening instability” — a new term in the American intelligence lexicon, at least when associated with economic crises — but it is clear from his testimony that U.S. officials are closely watching dozens of shaky nations in Africa, the Middle East, Latin America and Central Asia.
     
    Now go back to that map on your wall with all those red and orange pins in it and proceed to color in appropriate countries in various shades of red and orange to indicate recent striking declines in gross national product and rises in unemployment rates. Without 16 intelligence agencies under you, you’ll still have a pretty good idea of the places that Blair and his associates are eyeing in terms of instability as the future darkens on a planet at the brink.
     
  • The world is heading towards tremulous times: War and Rumors of Wars. If you study the period in between the 2 World Wars, you know that we have entered a similar period. The risk of a major World War is significant. We have madmen like Netanyahu/Lieberman and the war hawks in America to thank for this. The Satanic Cabal seems intent on starting World War 3 in the near future. Let us hope for the best but prepare for the worse. Never ignore the lessons of history. You may not live long enough to tell your children about the great events we will all be living through.
     
  • See also :
     
    Gerald Celente – Israel War to Ignite Terror, Threaten Global Economy and possibly Spark World War III

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February 28, 2009 Posted by | Economics, EndTimes, GeoPolitics, History | , , , , , , , , | 9 Comments

Ron Paul – Elite Planning for a One World Government!

  • Senator Ron Paul telling the TRUTH ! The Illuminati elite are planning for a 1 World Fascist Government ! They already control the western world’s central banks!

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February 28, 2009 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , | Comments Off on Ron Paul – Elite Planning for a One World Government!

Paul C. Roberts – From One Assault on the Constitution to Another !

  • Paul Craig Roberts a former Assistant Secretary of the US Treasury and former associate editor of the Wall Street Journal, has been reporting shocking cases of prosecutorial abuse for two decades. A new edition of his book, The Tyranny of Good Intentions, co-authored with Lawrence Stratton, a documented account of how Americans lost the protection of law, has just been released by Random House.
     
  • He writes :
     
    The US Constitution has few friends on the right or the left.
    During the first eight years of the 21st century, the Republicans mercilessly assaulted civil liberties. The brownshirt Bush regime ignored the protections provided by habeas corpus. They spied on American citizens without warrants. They violated the First Amendment. They elevated decisions of the president above US statutory law and international law. They claimed the power to withhold information from the people’s representatives in Congress, and they asserted, and behaved as if, they were unaccountable to the people, Congress, and the federal courts. The executive branch claimed the power to ignore congressional subpoenas. Republicans regarded Bush as a Stuart king unaccountable to law. 
     
    The Bush brownshirt regime revealed itself as lawless, the worst criminal organization in American history. Now we have the Democrats, and the assault on civil liberty continues. President Obama doesn’t want to hold Bush accountable for his crimes and violations of the Constitution, because Obama wants to retain the powers that Bush asserted. Even the practice of kidnapping people and transporting them to foreign countries to be tortured has been retained by President Obama. 
     
    The civil liberties that Bush stole from us are now in Obama’s pocket. Will it turn out that we enjoyed more liberty under Bush than we will under Obama? At least the Republicans left us the Second Amendment. The Obama Democrats are not going to return our other purloined civil liberties, and they are already attacking the Second Amendment. 
     
    Rep. Bobby L. Rush (D, IL) has introduced the Blair Holt Firearm Licensing and Record of Sale Act of 2009. As the British and Australians learned, once firearms are registered, the government knows where they are. The government’s next step is to confiscate the firearms. 
     
    Moreover, the Act would permit the government to negate Second Amendment rights by refusing to issue a license. Any parents who bequeathed family antique or historic firearms to heirs would be in violation of the act, as it bans any transfer of a firearm other than via a licensed dealer. 
      
    William Blackstone, the revered 18th century defender of liberty whose Commentaries on the Laws of England was a bestseller in colonial America, wrote that “the last auxiliary right” of free men is “having arms for their defense.” Blackstone, England’s greatest jurist, said that the right to bear arms enables the “natural right of resistance and self-preservation, when the sanctions of society and laws are found insufficient to restrain the violence of oppression.” 
       
    The Bush regime’s reversion to medieval methods of incarceration and torture are an indication that we now live in a time “when the sanctions of society and laws are found insufficient to restrain the violence of oppression.” Why do the Democrats desire Americans to be helpless in the face of oppression by the armed state? How can it be that Democrats want Americans to be free from the threat of being thrown into dungeons and locked away without a court ever hearing evidence, but are prepared to deny Americans the ability to resist such horrendous treatment should it come their way? 
      ……   
    Americans have exercised Second Amendment rights for 234 years. Regardless of the meaning of the Second Amendment, the right of adverse possession makes gun rights final. To assault such a well-grounded right is an act of tyranny. 
        
  • I am no fan of gun ownership. I have been to many countries where guns are totally ban and the police is very effective in maintaining law and order. In these countries people trust their government to do a great job in maintaining law and order and civility. Japan, Singapore and Korea comes to mind.
     
  • But I cannot say I have confidence in the US government at all! The fact of the matter is: the Feds have been behaving like the head of an evil empire hell bent on eating its own children. Where in the Constitution does it say Torture is acceptable? How about Detention without trial? Operation Iraqi Liberation is all about OIL. The Feds send young American soldiers to die in a needless war for corporate OIL interest! If you do not see fascism/corporatism coming, you must be living on another planet.
     
  • Americans are waking up. States are declaring sovereignty! The latest count is 28 States Claiming / Planning Sovereignty :
     
    All of these ‘movements’ (except for Hawaii) are explicit restatements of what has always been in place, but not necessarily enforced, as detailed by the 10th Amendment.  Hawaii is actually aiming for total sovereignty as it is claimed that Hawaii was never really a state of the U.S.A..
     
    However, I believe the intent of these bills is to let the federal government know that the states’ sovereignty will not be overwritten… say in case certain gun ban laws get passed, FOCA-type laws, or other “War Time / Martial Law” type plans come into play.  Check them out:  link .
     
  • The LEGISLATURE OF THE STATE OF IDAHO, First Regular Session 2009 (emphasis mine) :
     
    WHEREAS, the Second Amendment of the United States Constitution does not simply provide for a collective right or a right for the states to establish militias; rather it provides for the right of the people to keep and bear arms; and
     
    WHEREAS, the primary purpose of the right to keep and bear arms is to protect one’s self, family and possessions from either the private lawlessness of other persons or the tyranny of government; and ….
      …..
    NOW, THEREFORE, BE IT RESOLVED by the members of the First Regular Session of the Sixtieth Idaho Legislature, the House of Representatives and the Senate concurring therein, that members of the United States Congress cease and desist attempting to enact federal legislation impinging on the individual right of every American to keep and bear arms in any manner. Specifically, that members of Congress oppose the passage of the Firearm Licensing and Record of Sale Act of 2009, and any similar legislation.

     
  • See also :
     
    Obama To Ban Gun Ownership? Attack on 2nd Amendment !
    21 States Declare Sovereignty – Rise of Secessionist Movement !
    Indiana Legislators Urge Feds to Cease and Desist !
    Battle Brewing Between US States & Federal Government!

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February 28, 2009 Posted by | GeoPolitics, Social Trends | , , , | 1 Comment

Towards A One World Currency, One World Central Bank & One World Government !

  • The Powers That Be (PTB), the Illuminati Banking Cartel, wants to drive the entire world towards a 1 world government, 1 world central bank and 1 world currency.
     
  • Make no mistake, this crisis is engineered by the Satanic Illuminati for the purpose of world conquest. The Illuminati employs Hegelian Dialectic, to drive the world to their objectives :
      
    Now, in the 21st century, Hegelian-Marxist thinking affects our entire social and political structure. The
    Hegelian dialectic is the framework for guiding our thoughts and actions into conflicts that lead us to a predetermined solution. If we do not understand how the Hegelian dialectic shapes our perceptions of the world, then we do not know how we are helping to implement the vision. When we remain locked into dialectical thinking, we cannot see out of the box.
     
    Hegel’s dialectic is the tool which manipulates us into a frenzied circular pattern of thought and action. Every time we fight for or defend against an ideology we are playing a necessary role in Marx and Engels’ grand design to advance humanity into a dictatorship of the proletariat. The
    synthetic Hegelian solution to all these conflicts can’t be introduced unless we all take a side that will advance the agenda. The Marxist’s global agenda is moving along at breakneck speed. The only way to completely stop the privacy invasions, expanding domestic police powers, land grabs, insane wars against inanimate objects (and transient verbs), covert actions, and outright assaults on individual liberty, is to step outside the dialectic. This releases us from the limitations of controlled and guided thought. 
     
  • These Satanists have set the world up by creating problems, conflicts, wars…, pitting 1 race/religion against another…so that the world will naturally react with horror and demand for a solution. The solution they have for us is 1 World Government and 666 . Their philosophy is Order Out of Chaos. To drive the world to their ‘Order’ they first create the ‘Chaos’ – wars, conflicts, famine….
     
  • Paul Joseph Watson writes :
     
    Head of market analysis for Schneider Foreign Exchange Stephen Gallo told CNBC yesterday that the financial crisis will lead to the creation of a global central bank and a global single currency within 15 years, echoing the call of top globalists who have exploited the problems they created to push for a new world financial order.
     
    Highlighting the significance of the introduction of the Euro, Gallo said that the single currency was “where we are headed globally on a monetary basis over the course of the next 10 to 15 years.”
     
    Stating that one of the things that caused the financial crisis was an over expansion of the money supply on a global basis, Gallo said, “Over the course of the next couple of decades central banks are going to need to pay more attention to what’s going on with the global money supply rather than the money supply just in their own borders,” a necessity that, “might call into question the need for some kind of global central bank or a global central bank that’s united by central banks for bigger monetary areas underneath that global central bank.”
     
    As we have highlighted before, the elite have exploited the problem that they created to push for increased centralization and regulation of the world economic system in the pursuit of a de-facto global financial dictatorship.
     
    British Prime Minister Gordon Brown, EU heads such as Joaquin Almunia and establishment media outlets like the Wall Street Journal amongst many others have all used the economic crisis as an excuse to argue for greater financial power, a “new world economic order” in which control is concentrated into fewer hands – with the IMF and the World Bank enjoying the spoils.
     
    UK Business Secretary and top Bilderberg member Peter Mandelson has also pushed for a “Bretton Woods for this century,” to help build the “machinery of global economic governance”.
     
    Former UK Prime Minister Tony Blair, German Chancellor Angela Merkel and French President Nicolas Sarkozy
    all made the same appeal at a conference in Paris on the future of capitalism last month.
     
    Merkel called for the creation of a new global economic body under the UN, similar to the Security Council, to judge government policy.
     
    Sarkozy called for a “new world, new capitalism” during his speech, as he commented “In capitalism of the 21st century, there is room for the state.”
     
    Meanwhile, Blair called for a new financial order which he said should be constructed upon “values other than the maximum short-term profit.”
      
    The globalists created the problem of wildly irresponsible fractional reserve banking, the debt bubble and the credit crunch by ceaselessly inflating the money supply and now they are offering their solution to the crisis by posing as the saviors and promising to fix the crisis, but only if complete control of the global financial system be signed over to them.
     
    As Ron Paul, Peter Schiff and their ilk have tirelessly argued, the only way to solve the financial crisis is to allow incompetent banks and companies to fail, not to reward their misdeeds by giving them billions in taxpayer money. The only way to re-capitalize the world is to provide incentives for people to work hard and save money, not by creating more credit out of thin air, which is what caused the problem in the first place.
     
    The globalists’ call for a centralized global economic order has nothing to do with providing solutions to the crisis but everything to do with providing themselves with more power and control over the world financial system.

     
  • Unfortunately, the ‘ruler of this world’ is Satan. These Satanists will have their day on this earth for a short while. They may be highly intelligent and ruthless. But Jesus Christ, God Almighty, will put an end to all their nonsense as stated in the Bible!
     
    Revelation 19:11-16 (New King James Version)
    11 Now I saw heaven opened, and behold, a white horse. And He who sat on him was called Faithful and True, and in righteousness He judges and makes war. 12 His eyes were like a flame of fire, and on His head were many crowns. He had a name written that no one knew except Himself. 13 He was clothed with a robe dipped in blood, and His name is called The Word of God. 14 And the armies in heaven, clothed in fine linen, white and clean, followed Him on white horses. 15 Now out of His mouth goes a sharp sword, that with it He should strike the nations. And He Himself will rule them with a rod of iron. He Himself treads the winepress of the fierceness and wrath of Almighty God. 16 And He has on His robe and on His thigh a name written: 

 KING OF KINGS AND LORD OF LORDS.

  • There is only 1 solution for the world, to release the world from the grip of Satan. His name is Jesus Christ.

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February 28, 2009 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , , , | 13 Comments

Obama To Ban Gun Ownership? Attack on 2nd Amendment !

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February 27, 2009 Posted by | Economics, GeoPolitics | | 2 Comments

Demand for Gold Coins Soar!

liberty_gold_coin

Liberty Gold Coin

  • Demand for gold is rocketing. Many people are so worried about the financial and economic health of the world that they are rushing to gold. Worried Investors Want Gold on Hand :
     
    Worried Investors Want Gold on Hand Some investors are so worried about the prospect of economic collapse that they are buying gold and having it delivered to them, rather than holding the precious metal in the form of futures contracts or other securities.
     
    The global recession and worries about the stability of the financial system have sent the price of gold to $1,000 an ounce. But more surprising is that buyers are taking the unusual and expensive step of taking possession of it.
     
    “We’re having some of our strongest months ever,” said Scott Thomas, president and chief executive of American Precious Metals Exchange, a precious-metals dealer in Edmond, Okla. “The bottom line is our numbers are probably double what they were last year, and last year was very busy.”
     
    Bob Coleman, who runs a bullion fund out of Nampa, Idaho, has taken multiple deliveries of gold and silver since last fall for his clients. The fund, Dollars and Sense Growth Fund, primarily invests in precious metals for high-net-worth individuals.
     
    “It’s more of a trust issue,” says Mr. Coleman. “Given all the turmoil in the market, people prefer to have access to the metal.” Sales of American Eagle gold bullion coins at the U.S. Mint in Philadelphia more than doubled in the first two months of this year.
     
    Investors are also flocking to gold coins. At the U.S. Mint, a total of 147,500 ounces of American Eagle gold bullion coins were sold in the first two months this year, a surge of 176% from the same period last year.
     
    Demand is rising at the Comex, the metals division of the New York Mercantile Exchange, where investors increasingly are choosing to take physical delivery of gold, rather than cash, once their futures contacts expire.
     
    Rising delivery orders have kept Brink’s Inc., a major carrier for the Comex, busy. The Richmond, Va., company said it saw a large spike in clients shipping gold and silver from the exchange over the past few months.
     
    Tony Klancic, an account executive at Lind-Waldock, a Chicago commodities brokerage, says he has been taking calls since September from individual investors wanting to buy physical gold.
    These are “real people in rural America with money under the mattress, and wealthy individuals coming to the futures market strictly intending to take delivery,” Mr. Klancic said.
     
    In December, 4.5% of gold contracts ended in delivery, compared with 3.4% a year earlier, according to the exchange. Investors also are taking delivery of silver, with contracts ending in delivery rising to 7.3% from 4.7%. December is typically a big month for deliveries, and in January, deliveries remained higher than the year before.
     
    Jewelers and other users of metals are among the buyers who take possession of gold and silver. But with sales of jewelry down and other industrial users cutting back, it appears that investors are causing the increase.
     
    Gold deliveries peaked at more than 8% in the early 1980s, when Mexico defaulted on its foreign debt and the world economy was in recession. Deliveries dropped and have gradually fallen back to the range of 2% in recent years.
     
    Gold pierced the $1,000 level last Friday, the first time since March 2008. On Tuesday, the February contract closed at $969.10 per troy ounce. So far this year, the precious metal is up 9.7%. 

     
  • With the world heading towards zero interest rate policy (ZIRP), gold is looking more and more like the real deal. Keep in mind that western governments have indicated they will move towards Quantitative Easing and Monetization of Debt. This is simply printing money out of thin air. Will there be a monetary collapse this year?
     
  • Financial Times reports Gold coin shortage as demand soars :
      
    The rush by retail investors into bullion coins is creating shortages as mints across the world struggle to meet the surge in demand, dealers and mint officials say.
     
    The scarcity is lifting coin premiums to as much as 5 per cent above the spot gold price, a level reached briefly after the collapse of Lehman Brothers last September, when coin shortages also surfaced.

  • Although gold price has come off their high last week of US$ 1000/ounce, this is just a normal correction in a bull run. Some say that this bull run still has 2 more years to go. The correction should be over by early next week and the price will breach US$1000/ounce easily. It will exceed the previous high of US$1035/ounce in March. How high? US$1250/ounce is not out of the question. If the Chinese come in and start to buy aggressively to build their gold reserves, how high it will go is any-body’s guess. The Chinese have indicated they will buy 4000 tons of physical gold to boost their reserves ie spend their US$2 T reserves to buy gold.
     
  • See also :
     
    Gold About to SkyRocket ! China Worries about Treasuries and Diversify into Gold !
    Gold Price Set to Soar !
    What’s not to Like about Gold ?
    Dollar Devaluation, Debt Default & Gold
    Massive US Dollar Devaluation Against Gold During 2009
    Gold Rush Worldwide!
    Obama, Roosevelt, Gold Confiscation and Dollar Devaluation

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February 27, 2009 Posted by | Economics | , | 11 Comments

Bill Maher – Hang the Bankers ! (Humor)

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February 27, 2009 Posted by | Economics, Satire | | 1 Comment

Eastern Europe – Hungary on the Edge of Bankruptcy!

  • The news keep getting worse for Eastern Europe. Hungary is about to go bust ! The question is how many western European banks are affected?
     
  • The Telegraph UK reports :
      
    Hungary is teetering on the edge of bankruptcy with its citizens struggling to pay off mortages and personal loans taken out in foreign currency during one of the post-Communist era’s most exuberant booms. 
     
    The birthplace of the Rubik’s Cube has provided its government with a multi-sided financial crisis that defies any ingenious solution.
     
    The forint currency has plummeted and unemployment has ballooned, creating a voracious debt trap that is sucking down banks backed by Western taxpayers, particularly those of Switzerland and Austria.
     
    Laslo Gulyas, a Budapest barman, is one of the lucky few who can still meet his repayments. “In times of trouble people need to keep drinking,” he bleakly noted at the counter of a handsome pub in Habsburg-era building.
     
    “But it is sure now that many people with mortgages that were taken because they were cheaper than local loans, have lost their jobs and can’t generate the money to make the repayments.”
     
    For almost a decade Hungary binged on cheap foreign loans taken out in Swiss francs and euros. It was a regional trendsetter. Foreign banks targetted the newly liberated central and eastern European states hoping to expand rapidly in new markets.
     
    “People’s desire for wealth was not bound by the forint,” said Laslo Czirjak, a Budapest fund manager. “They borrowed in Swiss francs, euros and, even for a time, Japanese yen was available – it was just nuts.”
     
    When forint interest rates proved stubbornly high, lower rate loans in Swiss francs and euros offered extra purchasing power. Statistics show that more that 60 per cent of Hungarian mortgages and car loans are denominated in foreign currencies. In one retropectively frenzied month – October 2007 – foreign currency loans represented 93 per cent of all lending.
     
    Hundreds of debtors in default have turned to a volunteer organisation, the Association of Bank Loan Victims, for advice on saving their homes from repossession.
     
    Rakitouszki Istvan, a builder, has not been paid for a year and lost his job in August. Last month the bank sold off his flat to a businessman who now wants to evict Mr Istvan and his family.
     
    “I bought my flat for stability in life and for my kids to inherit that,” he said. “I had no idea I was going to get laid-off. I thought as long as I could work I was alright but it’s dreadful. There’s no investment in construction. I’ve been all over the place and there’s nothing.”
     
    Despite losing his property, Mr Istvan remains liable for the entire loan and if he cannot repay, his children would be held liable for the debt. Mariann Lenard, a lawyer who runs the Association, said the law puts mortgage holders at the mercy of the lenders. “For a long time the ordinary man in the street is going to be involved in an unequal struggle with the banks.”
     
    It is not just individuals that are prey to the downturn. Hungary is experiencing its gravest crisis since 1946 when it suffered history’s worst bout of hyper-inflation. Today’s battered forint was introduced then to replace the pengo, which was destroyed after the government tried to wipe out a Second World War debt overhang. ….
      ….
    “There was a large bubble of consumption based on household debt,” said Janos Samu, an economist with Concorde Securities. “But now the exporters can’t gain on the collapse in the forint. It’s having a double impact on the economy.”
     
    The Hungarian government is attempting to guarantee the mortgage payments of everyone who loses a job in the crisis but it is already in receipt of IMF assistance and the pledge will mean more cuts in general expediture. International help has been sought. Switzerland has promised to provide all the Swiss francs the Hungarian government needs to meet repayment demands. Austria is demanding the EU to establish a 150 billion euro (£134 billion) fund to bail out East and Central Europe.
      ….. 
    Hungarians have become aware that the fall out from their folly will stretch far from the Danube’s banks. “What’s happening here means that all of Europe is going to suffer because you can’t have one country drop out of its element without affecting all the continent,” said Mr Gulyas.
     
  • See also :
     
    Eastern Europe Collapsing !
    European Monetary System At Breaking Point ! Eastern Europe Bad Debts set to Bankrupt European Banks!
    Eastern Europe Contagion Fear ! Ukraine Crumbling !
    Next Wave of Banking Crisis to come from Eastern Europe
    Eastern Europe Economic Collapse & Looming Debt Defaults
     

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February 27, 2009 Posted by | Economics | , , , , , | 6 Comments

Ron Paul – Federal Reserve is the Culprit!

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February 27, 2009 Posted by | Economics | , , | 9 Comments

Japan’s Exports Plummet 45.7% in January!

  • We are in the midst of a worldwide economic collapse! This is not a recession. When you see exports plunging 45.7%, it means the economic engine is having a heart attack and is dying. This depression will be much worse than the 1st Great Depression.
     
  • Bloomberg reports Japan’s Recession May Deepen After Exports Drop Record 45.7% :
      
    Feb. 26 (Bloomberg) — Japan faces its worst postwar recession as the collapse in consumer spending abroad pummels the country’s exports.
     
    Shipments from Asia’s largest economy will contract further this year, analysts predict, after plunging a record 45.7 percent in January from a year earlier. Last month’s slide, reported yesterday by the Finance Ministry in Tokyo, pushed the trade deficit to a record 952.6 billion yen ($9.9 billion). Sales to the U.S. alone fell 52.9 percent.
     
    “We’re set up for a very, very deep contraction in first- quarter exports,” said David Hensley, director of global economic coordination at JPMorgan Chase & Co. in New York. “There’s no way you’re going to reverse this situation. The quarter’s pretty much already written as of January.”
     
    Gross domestic product shrank at an annual pace of 12.7 percent last quarter and won’t do any better in the first three months of this year, Hensley estimates. The slump could force Prime Minister Taro Aso’s government, whose popularity has dwindled to less than 10 percent, to push for more fiscal stimulus. Meantime, factories are closing and workers are losing their jobs.
     
    Japan became more reliant on exports for growth in the past decade, making the economy more vulnerable to the global recession. Manufacturers shipped 21 percent of their goods abroad in 2008, up from 16 percent in 1998, according to the central bank. ….
     
    The Japanese economy’s contraction last quarter was the worst since the 1974 oil shock, and analysts predict the slump will drag into next fiscal year. Output may shrink a record 4 percent in the year starting April 1, according to economists surveyed.
     
    Japan’s shipments to Europe slid 47.4 percent in January from a year earlier, the Finance Ministry said. Exports to China fell 45.1 percent and those to Asia dropped 46.7 percent. Imports fell 31.7 percent from a year earlier.
     
    “Japan remains an economy that is very dependent on trade,” said Lewis Alexander, chief economist at Citigroup Inc. in New York. “The pace of the contraction of global trade is very extreme.” 
     

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February 26, 2009 Posted by | Economics | , , , , | Comments Off on Japan’s Exports Plummet 45.7% in January!

Dubai – Is the Party Over ?

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February 26, 2009 Posted by | Economics | , | 2 Comments

Battle Brewing Between US States & Federal Government!

  • 25 states have introduced bills declaring sovereignty from the federal government and the number is increasing by the week! The Feds have been ‘screwing’ Americans big time. The Feds seem intent on declaring martial law, instituting military draft, confiscating all guns and preventing the sale of ammunition…. What are they up to? It cannot be good for America.
     
  • Wakey! Wakey! Lawmaker Warns Of “Forced Servitude” Under Obama :
     
    New Hampshire state representative Dan Itse, who is one of many lawmakers leading the charge to assert state sovereignty against federal encroachment, has warned that the Obama administration seeks to institute “involuntary servitude”.
     
    Appearing on Fox News to discuss the states’ rights movement, Itse told hosts Steve Doocy and Brian Kilmeade, “This is about drawing a line in the sand and saying we’ve tolerated usurpations for so long but we’re not going to tolerate you violating the constitution, we’re going to hold you accountable.”
     
    Asked if his warning about involuntary servitude under Obama meant young people being forced to attend community service, Itse responded, “Exactly, I mean, if you are required to do a job against your will with a pay scale not set by you or not agreed to by you, that’s involuntary servitude.”
     
    Despite denials that Obama plans to institute a mandatory program of national service,
    his original change.gov website stated that Americans would be “required” to complete “50 hours of community service in middle school and high school and 100 hours of community service in college every year”. The text was only later changed to state that Americans would be “encouraged” to undertake such programs.
     
    In addition, Obama’s Chief of Staff,
    Rahm Emanuel, publicly stated his intention to help create “universal civil defense training” in 2006. Such fears were also stoked when Obama himself said that a “national civilian security force,” that is “just as powerful, just as strong, just as well-funded” as the U.S. military was required.
     
    Itse cited the No Child Left Behind program as an example of the federal government encroaching on states’ rights. “They dangle a dollar in front of us and we chase it like the donkey with a carrot on a stick but ultimately they are infringing upon our domestic policies in the states, manipulating our domestic policies and we need to stand up and say that’s not your job, that’s our job,” said Itse, adding that if enough states stood up to Washington then they would have to pay attention.
     
    In response to increasing federal encroachment,
    a growing number of states have passed and proposed resolutions to assert the Tenth Amendment and the Bill of Rights of the Constitution.
     
    Washington, New Hampshire, Arizona, Montana, Michigan, Missouri, Oklahoma, California, and Georgia have all introduced bills and resolutions declaring sovereignty under the Tenth Amendment. Colorado, Hawaii, Pennsylvania, Arkansas, Idaho, Indiana, Alaska, Kansas, Alabama, Nevada, Maine, and Illinois are considering such measures.
     
    “This is about enforcing the constitution which states to the government, you’re not the boss of us, we’re the boss of you,” concluded the lawmaker.

     
  • Why is the federal government redeploying troops back to America? As many as 20,000 soldiers are now redeployed in America from overseas. The military is actively training soldiers to handle civilian unrest, riots…. why ? Remember the Posse Comitatus Act ?
     
    The Posse Comitatus Act is a United States federal law (18 U.S.C. § 1385) passed on June 16, 1878 after the end of Reconstruction, with the intention (in concert with the Insurrection Act of 1807) of substantially limiting the powers of the federal government to use the military for law enforcement. The Act prohibits most members of the federal uniformed services (today the Army, Air Force, and State National Guard forces when such are called into federal service) from exercising nominally state law enforcement, police, or peace officer powers that maintain “law and order” on non-federal property (states and their counties and municipal divisions) in the former Confederate states.
     
    The statute generally prohibits federal military personnel and units of the National Guard under federal authority from acting in a law enforcement capacity within the United States, except where expressly authorized by the
    Constitution or Congress. The Coast Guard is exempt from the Act.
     
  • What is about to happen to America is not going to be pretty. If you think the Feds is going to bail you out and save you, you are in for a rude shock! See also :
     
    21 States Declare Sovereignty – Rise of Secessionist Movement !
    Indiana Legislators Urge Feds to Cease and Desist !

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February 26, 2009 Posted by | Economics, GeoPolitics, Social Trends | , , , , , | 3 Comments

Eastern Europe Collapsing !

  • Eastern Europe is the too hot to handle potato now. We are very close to a cataclysmic event. Simon Tisdall writes in Fiddling while eastern Europe burns :
      
    As the financial crisis deepens, the EU’s indecision and failure to act threatens to shatter the vision of a united Europe.
     
    If the EU has an answer to the intensifying financial firestorm in eastern Europe, it is keeping it to itself. But the longer member states fiddle about, the greater the risk of a pan-continental conflagration – and of lasting damage to the EU’s core aspiration for wider and deeper union.
     
    A fractious
    meeting of foreign ministers in Brussels this week seemed to sum up all that is wrong and doesn’t work in the EU. Rather than urgently address massive Hungarian debt defaults, plunging Polish output, splintering Baltic coalitions, or Ukrainian street protests, they wasted time arguing over Slovenia’s arcane Adriatic fishing boat dispute with Croatia.
     
    Richer west European states, led by Germany, fear eastern instability could further harm their struggling economies. Austrian bank lending in eastern Europe, for example, is equivalent to about 80% of Austria’s entire GDP. Eastern borrowers must repay $400bn in debt owed to western banks this year – or else everybody gets burned.
     
    But worries about spreading contagion did not prevent “old Europe” holding up an EU commission plan to spend €5bn on energy and other infrastructure projects, part of a €200bn stimulus package that southern members like Spain and Greece say unfairly favours the east. The main concern of Gordon Brown’s Eurosceptic Britain, meanwhile, seems to be stopping its pocket being picked by
    recent arrivals.
     
    Robert Zoellick, the president of the World Bank, says the EU should take the lead in rescuing eastern Europe. But the commission has reportedly already spent nearly half of its €25bn emergency fund on Hungary and Latvia. Much more will be needed. But wealthier EU governments have yet to cough up – while private capital is moving in the opposite direction as western banks reduce their exposure.
     
    It’s far from clear who, other than the eager-to-please Japanese, will fund the EU’s weekend call, backed by the US, for a
    doubling of IMF rescue resources. Yet this gambit was itself evidence of political weakness – an indirect admission that Europe, where many new members (and two old ones, Britain and Denmark) have yet to adopt the euro, lacks union-wide financial institutions with the clout to deliver effective bail-outs. …..
     
    The political ramifications of the EU’s indecision, if it continues, are many – but two main effects stand out. One is the prospective definitive ending of an eastwards enlargement policy already crippled by the Lisbon treaty stalemate.
     
    Not just Serbia, held back in any case by its failure to arrest accused war criminal
    Ratko Mladic, but also Montenegro, Macedonia, other Balkan countries, and Turkey have all seen their EU membership chances recede sharply in recent months as Europe’s weaknesses, economic, political and institutional, have been cruelly exposed.
     
    Other casualties may include Armenia, Azerbaijan, Georgia, Moldova, Belarus, and Ukraine, potential members of the EU’s new “eastern partnership” due to be launched in May. The scheme involves expanded free trade and economic and security cooperation, part of an ambitious nation and democracy-building programme.

       
  • See also :
     
    European Monetary System At Breaking Point ! Eastern Europe Bad Debts set to Bankrupt European Banks!
    Eastern Europe Contagion Fear ! Ukraine Crumbling !
    Next Wave of Banking Crisis to come from Eastern Europe
    Eastern Europe Economic Collapse & Looming Debt Defaults
     

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February 26, 2009 Posted by | Economics, GeoPolitics | , , , , , , | 2 Comments