In a report entitled "Worst-case debt scenario", the bank's asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.
Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of "deleveraging", for years.
Related Articles
'Debt levels risk another crisis'
"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.
Read the rest...http://www.telegraph.co.uk/finance/economics/6599281/Societe-Generale-tells-clients-how-to-prepare-for-global-collapse.html
Friday, November 20, 2009
Tuesday, November 3, 2009
Deflation or Inflation
"Deflation" this time around will not result in falling consumer prices.
When the big deflation comes in US Treaasuries, which will be triggered by Japan selling off to fund their looming fiscal crunch, the Fed will monetize (inflate FRNs) to keep interest rates down. If they don't, the US government will go bankrupt as most of the US debt rolls over every 5 years and rapidly rising rates will devour the budget. If the Fed does not inflate FRNs to soak up crashing Treasuries, then Congress will take over the Fed and 2010 republicans will hyperinflate by decree.
There will be no deflation in consumer prices. Sorry. The mass-inflation is already here. The stock market/real estate market is being reflated by TARP/GSE cash infusions and Fed outright purchases. 2 of 3 automakers are utterly insolvent yet still have $Bs in market cap. Oil, gold, silver are on a rocket.
Mass inflation is here. We are in it. Next stop, $4.00 gas.
When the big deflation comes in US Treaasuries, which will be triggered by Japan selling off to fund their looming fiscal crunch, the Fed will monetize (inflate FRNs) to keep interest rates down. If they don't, the US government will go bankrupt as most of the US debt rolls over every 5 years and rapidly rising rates will devour the budget. If the Fed does not inflate FRNs to soak up crashing Treasuries, then Congress will take over the Fed and 2010 republicans will hyperinflate by decree.
There will be no deflation in consumer prices. Sorry. The mass-inflation is already here. The stock market/real estate market is being reflated by TARP/GSE cash infusions and Fed outright purchases. 2 of 3 automakers are utterly insolvent yet still have $Bs in market cap. Oil, gold, silver are on a rocket.
Mass inflation is here. We are in it. Next stop, $4.00 gas.
Wednesday, October 21, 2009
More Predictions
10/20...
This latest market runup is nothing more than a reflation fueled by 0.00% money, levered up twenty times by banksters like Government Sachs.
90% of the bankster earnings are from the "carry trade" so to speak. They swap their bad assets (MBS) for Federal Reserve Notes which are used to shore up their margin accounts.
The Fed has "bought" close to $300 Billion in MBS since July 1 (check their H3 and H4 reports).
The speculative bubble is only possible with 0%, short term loans. The dollar crumbles daily and the Fed will be soon forced to act. But hiking rates will reveal the scheme as unsustainable and collapse the equity markets.
This latest market runup is nothing more than a reflation fueled by 0.00% money, levered up twenty times by banksters like Government Sachs.
90% of the bankster earnings are from the "carry trade" so to speak. They swap their bad assets (MBS) for Federal Reserve Notes which are used to shore up their margin accounts.
The Fed has "bought" close to $300 Billion in MBS since July 1 (check their H3 and H4 reports).
The speculative bubble is only possible with 0%, short term loans. The dollar crumbles daily and the Fed will be soon forced to act. But hiking rates will reveal the scheme as unsustainable and collapse the equity markets.
Sunday, September 13, 2009
Public Option = Babies Left to Die (in UK)
'Doctors told me it was against the rules to save my premature baby'
By Vanessa Allen and Andrew LevyLast updated at 8:53 AM on 10th September 2009
Doctors left a premature baby to die because he was born two days too early, his devastated mother claimed yesterday.
Sarah Capewell begged them to save her tiny son, who was born just 21 weeks and five days into her pregnancy - almost four months early.
They ignored her pleas and allegedly told her they were following national guidelines that babies born before 22 weeks should not be given medical treatment. Read more: http://www.dailymail.co.uk/news/article-1211950/Premature-baby-left-die-doctors-mother-gives-birth-just-days-22-week-care-limit.html#ixzz0R0VRCvMh
By Vanessa Allen and Andrew LevyLast updated at 8:53 AM on 10th September 2009
Doctors left a premature baby to die because he was born two days too early, his devastated mother claimed yesterday.
Sarah Capewell begged them to save her tiny son, who was born just 21 weeks and five days into her pregnancy - almost four months early.
They ignored her pleas and allegedly told her they were following national guidelines that babies born before 22 weeks should not be given medical treatment. Read more: http://www.dailymail.co.uk/news/article-1211950/Premature-baby-left-die-doctors-mother-gives-birth-just-days-22-week-care-limit.html#ixzz0R0VRCvMh
A Track Record of Lies
A MINORITY VIEW
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, SEPTEMBER 2, 2009
Washington's Lies
President Obama and congressional supporters estimate that his health care plan will cost between $50 and $65 billion a year. Such cost estimates are lies whether they come from a Democratic president and Congress, or a Republican president and Congress. You say, "Williams, you don't show much trust in the White House and Congress." Let's check out their past dishonesty.
Read the rest...http://economics.gmu.edu/wew/articles/09/Washington%27sLies.htm
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, SEPTEMBER 2, 2009
Washington's Lies
President Obama and congressional supporters estimate that his health care plan will cost between $50 and $65 billion a year. Such cost estimates are lies whether they come from a Democratic president and Congress, or a Republican president and Congress. You say, "Williams, you don't show much trust in the White House and Congress." Let's check out their past dishonesty.
Read the rest...http://economics.gmu.edu/wew/articles/09/Washington%27sLies.htm
Saturday, August 15, 2009
The Health Care Plan Really IS Government Run
The devil is definitely in the details! This plan is the typical statist scheme. The summary goals seem reasonable but the means of accomplishing those ends opens a pathway to total government control. See below:
Page 17
(3) RESTRICTIONS ON PREMIUM INCREASES.—
The issuer cannot vary the percentage increase in the premium for a risk group of enrollees in specific grandfathered health insurance coverage without changing the premium for all enrollees in the same risk group at the same rate, as specified by the Commissioner.
(Who defines the "risk group"?)
Page 17:
(A) IN GENERAL.—The Commissioner shall establish a grace period whereby, for plan years beginning after the end of the 5-year period beginning with Y1, an employment-based health plan in operation as of the day before the first day of Y1 must meet the same requirements as apply to a qualified health benefits plan under section 101, including the essential benefit package requirement under section 121.
And on Page 18:
(iii) Such other limited benefits as the Commissioner may specify.
In no case shall an employment-based health plan in which the coverage consists only of one or more of the coverage or benefits described in clauses (i) through (iii) be treated as acceptable coverage under this division
(More government mandates that create a political means of destroying private coverage)
Page 24:
SEC. 116. ENSURING VALUE AND LOWER PREMIUMS.
(a) IN GENERAL.—A qualified health benefits plan shall meet a medical loss ratio as defined by the Commissioner. For any plan year in which the qualified health benefits plan does not meet such medical loss ratio, QHBP offering entity shall provide in a manner specified by the Commissioner for rebates to enrollees of payment sufficient to meet such loss ratio.
(So if a private insurance company makes too much money, the government force them to give it up)
Page 41:
SEC. 141. HEALTH CHOICES ADMINISTRATION; HEALTH CHOICES COMMISSIONER.
(a) IN GENERAL.—There is hereby established, as an independent agency in the executive branch of the Government, a Health Choices Administration (in this division referred to as the ‘‘Administration’’).
(A "Health Choices" Czar accountable only to the President)
And on Page 42:
(a) DUTIES.—The Commissioner is responsible forcarrying out the following functions under this division:
(1) QUALIFIED PLAN STANDARDS.—The establishment of qualified health benefits plan standards under this title, including the enforcement of such standards...
Page 59:
‘‘(B) require paper versions of standardized transactions to comply with the same standards as to data content such that a fully compliant, equivalent electronic transaction can be populated from the data from a paper version;
(Every medical service you receive will be put into an electronic database)
Page 432:
(A) IN GENERAL.—For purposes of reporting data on quality measures for covered professional services furnished during 2011 and any subsequent year, to the extent that measures are available, the Secretary shall include quality measures on end of life care and advanced care planning that have been adopted or endorsed by a consensus-based organization, if appropriate. Such measures shall measure both the creation of and adherence to orders for life sustaining treatment.
(Death Czar?)
It goes on and on....
Page 17
(3) RESTRICTIONS ON PREMIUM INCREASES.—
The issuer cannot vary the percentage increase in the premium for a risk group of enrollees in specific grandfathered health insurance coverage without changing the premium for all enrollees in the same risk group at the same rate, as specified by the Commissioner.
(Who defines the "risk group"?)
Page 17:
(A) IN GENERAL.—The Commissioner shall establish a grace period whereby, for plan years beginning after the end of the 5-year period beginning with Y1, an employment-based health plan in operation as of the day before the first day of Y1 must meet the same requirements as apply to a qualified health benefits plan under section 101, including the essential benefit package requirement under section 121.
And on Page 18:
(iii) Such other limited benefits as the Commissioner may specify.
In no case shall an employment-based health plan in which the coverage consists only of one or more of the coverage or benefits described in clauses (i) through (iii) be treated as acceptable coverage under this division
(More government mandates that create a political means of destroying private coverage)
Page 24:
SEC. 116. ENSURING VALUE AND LOWER PREMIUMS.
(a) IN GENERAL.—A qualified health benefits plan shall meet a medical loss ratio as defined by the Commissioner. For any plan year in which the qualified health benefits plan does not meet such medical loss ratio, QHBP offering entity shall provide in a manner specified by the Commissioner for rebates to enrollees of payment sufficient to meet such loss ratio.
(So if a private insurance company makes too much money, the government force them to give it up)
Page 41:
SEC. 141. HEALTH CHOICES ADMINISTRATION; HEALTH CHOICES COMMISSIONER.
(a) IN GENERAL.—There is hereby established, as an independent agency in the executive branch of the Government, a Health Choices Administration (in this division referred to as the ‘‘Administration’’).
(A "Health Choices" Czar accountable only to the President)
And on Page 42:
(a) DUTIES.—The Commissioner is responsible forcarrying out the following functions under this division:
(1) QUALIFIED PLAN STANDARDS.—The establishment of qualified health benefits plan standards under this title, including the enforcement of such standards...
Page 59:
‘‘(B) require paper versions of standardized transactions to comply with the same standards as to data content such that a fully compliant, equivalent electronic transaction can be populated from the data from a paper version;
(Every medical service you receive will be put into an electronic database)
Page 432:
(A) IN GENERAL.—For purposes of reporting data on quality measures for covered professional services furnished during 2011 and any subsequent year, to the extent that measures are available, the Secretary shall include quality measures on end of life care and advanced care planning that have been adopted or endorsed by a consensus-based organization, if appropriate. Such measures shall measure both the creation of and adherence to orders for life sustaining treatment.
(Death Czar?)
It goes on and on....
Saturday, August 1, 2009
Audit the Fed Bill Will Not Pass
Will we ever get to see how much many trillions of dollars Bernanke printed and handed over to Goldman Sachs, JP Morgan, the Bank of England, and the US Treasury? Wouldn't it be nice to learn how the FOMC twisted the arms of banker executives and what the committee members had to say and how far they are willing to go to prevent the collpase of the Financial Cartel?
Well, it ain't gonna happen because all the forces of the three branches of government have WAY too much to lose. And no, the three branches of American government are not the Executive, Legislative, and Judicial like your Public School propoganda agent taught you. They are the Bureaucratic, Financial, and Corporate and they have ONE GOAL: Keep their system alive by ANY means possible.
A Fed audit would generate so much outrage that the system would collapse almost instantly out of sheer outrage.
So this is what will happen:
1. The Bill will never get out of Braney Frank's Committee
2. If it does and the House votes for it, the Senate will kill it
3. If the Senate votes for it (without neutering it) due to pressure from constituants, then Obama will veto it.
4. If Obama signs it then the GAO will half-ass the audit
5. If the GAO actually does their job then the Fed will simply shred the offending documents and cook the books.
Welcome to Amerika!
Well, it ain't gonna happen because all the forces of the three branches of government have WAY too much to lose. And no, the three branches of American government are not the Executive, Legislative, and Judicial like your Public School propoganda agent taught you. They are the Bureaucratic, Financial, and Corporate and they have ONE GOAL: Keep their system alive by ANY means possible.
A Fed audit would generate so much outrage that the system would collapse almost instantly out of sheer outrage.
So this is what will happen:
1. The Bill will never get out of Braney Frank's Committee
2. If it does and the House votes for it, the Senate will kill it
3. If the Senate votes for it (without neutering it) due to pressure from constituants, then Obama will veto it.
4. If Obama signs it then the GAO will half-ass the audit
5. If the GAO actually does their job then the Fed will simply shred the offending documents and cook the books.
Welcome to Amerika!
Saturday, July 25, 2009
Thursday, July 23, 2009
Fed Method
The monetary base has been expanded by roughly $1Trillion (more than doubled) since last Spetember. When the inflation comes (and you are seeing it already) how will the Fed pull liquidity out of the system?
Well, in 2008 the Fed devised a scheme whereby they can pay interest on bank deposits held on deposit with them. So when the inflated monetary base starts working it's way into the economy, the Fed can suck it back out by merely increasing the interest rate they pay to bankers for keeping their cash on deposit with the Fed.
What are the implications of this?
1. Does it not still create money in the form of monetized interest payments (albeit at a slower pace)?
2. Will the Fed get in a viscous spiral whereby they chase the market interest rates up?
3. Will the Fed's lucrative rates be made available to slobs like you and me?
Well, in 2008 the Fed devised a scheme whereby they can pay interest on bank deposits held on deposit with them. So when the inflated monetary base starts working it's way into the economy, the Fed can suck it back out by merely increasing the interest rate they pay to bankers for keeping their cash on deposit with the Fed.
What are the implications of this?
1. Does it not still create money in the form of monetized interest payments (albeit at a slower pace)?
2. Will the Fed get in a viscous spiral whereby they chase the market interest rates up?
3. Will the Fed's lucrative rates be made available to slobs like you and me?
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