Archive for February 15th, 2011

Festering Debt Crisis Pressures Euro Downwards

Tuesday, February 15th, 2011

The majority of people seem to be very ignorant of just how bad the international financial situation is. The world (the United States included) is standing at the top of very slippery slope. Once something happens to push us over the edge, there will be no stopping the complete collapse of the world monetary system.
The Bible warns us this must happen. It is very scary, but Christians must be aware of this. Time is short, folks.

After a week when it appeared that the euro was entering into calmer waters, the tension and weakness returned.

The yield on Portuguese bonds has risen to 7.6% — an all-time high in the euro era. The Portuguese financial experts have themselves estimated that Portugal will not be able to repay her debt that at this rate and this could necessitate another bailout. Rather than pay the high yields, the Portuguese government decided to perform a reverse bond auction and bought up its own bonds rather than offering them for sale. It is doubtful that this tactic can be employed more than once. The European Central Bank has also intervened and bought up some of Portugal’s debt.

The fear is that if Portugal is seen to be failing, attention will then turn to the much larger economies of Spain and Italy. One can only go so many times to the German financial well for relief. German Chancellor Angela Merkel faces resistance from her Free Democratic partners in the coalition and additionally she must keep a wary eye on state elections that could alter the composition in Germany’s upper house, the Bundesrat, to the detriment of her coalition (Merkel’s Christian Democrats already lost a state election after agreeing to a EU bailout).

Appropriately at a meeting of Finance ministers from the 17 countries in the euro bloc that began today in Brussels and will last through Tuesday, German Finance Minister Wolfgang Schaueble doubted that there would be progress on a more ambitious debt package..

Another pressure point is that the “done deals” of the Greek and Irish bailouts are threatening to become unglued, either because the Greeks and Irish are negotiating for improved terms over the original agreement, or that differences surfaced over Greek and Irish compliance with the terms.

Original Link.

Egypt: Muslim Brotherhood to Set Up Party Once Restrictions are Lifted

Tuesday, February 15th, 2011

Next to al-Qaeda, the Muslim Brotherhood is responsible for funding and assisting terrorist acts the world over. They are a radical terrorist supporting group. There was a reason they were outlawed in Egypt.
Now those restrictions are being lifted.
It will be interesting to see what comes out of the current turmoil in Egypt.

Egypt’s Muslim Brotherhood will set up a political party once restrictions are lifted that prevented it and other groups from doing so under President Hosni Mubarak.

The Islamist group said in a statement it had declared its desire to a set up a party many years ago but was stopped by the political parties law, one of many curbs on political activity during Mr Mubarak’s rule.

“When the popular demand for the freedom to form parties is realised, the group will found a political party,” said the statement, posted on the group’s website and dated Feb. 14.

The Brotherhood was founded in the 1920s and has deep roots in Egypt’s conservative Muslim society. Although Mr Mubarak maintained a formal ban on the group, his administration tolerated it so long as it did not challenge his power.

The Brotherhood said on Saturday it would not seek the presidency or a parliamentary majority in elections which Egypt’s new military rulers have promised to hold.

The military council, which took over from Mr Mubarak on Friday, has said it plans to transfer power to civilians and establish democratic rule. The council has said it will govern temporarily until elections are held.

Original Link.

San Diego Port Security Says WMD Found on American Soil

Tuesday, February 15th, 2011

Can you say “cover-up”?

Assistant Director of the Port of San Diego admitted to a KGTV reporter that officials have found, in the past, weapons of “mass effect.” A public affairs official interrupted the officer during the interview saying they would provide more information later. The Department of Homeland Security, responding 23 days later, said the officer was “confused” and “nervous”.

Click on the Original Link below to watch a video of the exchange.

Original Link.

“Liars with Calculators” by Todd Strandberg

Tuesday, February 15th, 2011

Anyone making the most honest assessment of America’s financial health would have to conclude that we are in deep trouble. Despite the fact that we are on a collision course with national bankruptcy, the general mood of the nation remains rather upbeat.

I’ve been keeping track of a number of financial reports on the economy, and I see a massive pattern of fraud and deception. The people who provide the economic stats to the public are doing everything they can to make the numbers look rosy.

A smoke alarm is designed to let us know if there is a fire in our house. It would be a criminal act for someone to think he or she could prevent the danger by removing the batteries, but this is exactly what some people are doing.

Earlier this month, the Bureau of Labor Statistics released the jobless reports for January. The unemployment rate fell from 9.4 percent to 9.0 percent. Many people were left to wonder how the rate could decrease by so much when January only saw a reported increase in payroll employment of 36,000. What happened is that the Labor Department reduced the workforce by about half a million people.

The Congressional Budget Office is responsible for issuing projections for America’s national budget. In its latest report, the CBO is projecting a $1.5 trillion deficit this fiscal year, which is $414 billion–or 38 percent–more than the prediction they made only last August. After doing some research, I found out that the CBO is frequently wrong because it relies on projections that are totally divorced from reality. Here are some examples:

* They expect total tax revenues to rise 43 percent in the next two years alone and 129.6 percent over the coming decade. This would be a remarkable change for an economy that is only growing at 3 percent.

* There will be sharp reductions in Medicare’s payment rates for physicians. Most private economists see Medicare deficit spending going from 3.6 percent of GDP to 6 percent.

* Discretionary spending will rise at the rate of inflation (or rather, of price increases, which they project to be low) instead of the MUCH faster rate of increase seen over the last twelve years.

* They’re expecting 2.5 million jobs every year for the next decade. That’s 208,334 new jobs every single month for 120 months!

* Interest rates will remain at historic lows for the foreseeable future. Rates are already rising, and they will only continue to rise as investors realize how risky American debt has become.

Even allowing for the CBO’s high growth assumptions, low inflation, rising taxes, the unemployment rate falling to 5.2 percent by 2021, and higher revenues, the national debt will STILL more than double over the next decade. If you use numbers that are based on reality, the debt will triple, if not quadruple, over this same period.

Social Security and government pension funds are another storehouse of misinformation. Both of these retirement plans are giant Ponzi schemes that have reached the end of their life cycles. We are still being told that Social Security has a trust fund that will last until 2037. The fact is that Social Security is running in the red right now. Within a few short years, it will be adding tens of billions to the annual deficit.

The prize for the biggest liars would have to go to the various debt-rating agencies. They were instrumental in the housing debacle. Firms like Moody’s, Standard & Poor, and Fitch routinely gave AAA rates to bonds that were almost guaranteed to default. The rating agencies have made some changes, but they are still wildly underestimating the risk factors for bank and national debt.

The most outrageous error is the AAA rating placed on Uncle Sam’s debt. China has $3 trillion in foreign reserves, and yet its rating is four points below ours. We have $14 trillion in debt and a trade deficit of $600 billion each year.

The grand summation of this mountain of deception is that we will likely have little warning when the financial meltdown takes place. Everything will be continuing along as normal, then the wheels of our economy will suddenly fly off. My advice is to place your trust in Jesus Christ. He is the One who can deliver us from this doomed world.

— Todd

Original Link.