Friday, March 19, 2010
The deteriorating international trade position of the U.S. as documented by the CIA is a national security concern by the U.S. military, according to the Joint Operating Environment 2010 report, or JOE 2010, released Monday by the United States Joint Forces Command, or USJFCOM. (more)
It is actually a horror that the level of private debt in the United States peaked last year at about US$36 trillion, which is certainly a lot of money, especially since total gross domestic product (GDP) of the Whole Freaking Country (WFC) is only $14 trillion (and falling!).
In some kind of bizarre "good news/bad news" joke, total private debt has now actually fallen by a couple of trillion dollars to $34 trillion, which is bad news for an economy that depends on consumption, but is good news in that people have lighter debt burdens. (more)
“Our sense is that the importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood,” he says.
“Yet, with time, it will prove to be highly consequential. The sooner this is recognized, the greater the probability of being able to stay ahead of the disruptions rather than be hurt by them,” he recently wrote in the Financial Times.
For now, experts are focusing narrowly on Greece, El-Erian explains. (more)
"This is an extremely cheap market," he says.
Others claim that price-earnings (PE) ratios using 10 years of earnings data show the market is overvalued.
But Siegel says that argument is bunk thanks to the huge losses suffered by banks and other financial companies in 2008-09. Those losses are highly unlikely to be repeated, he points out. (more)
Preparing for Civil Unrest in America Legislation to Establish Internment Camps on US Military Bases
What is at stake is the fraudulent confiscation of lifelong savings and pension funds, the appropriation of tax revenues to finance the trillion dollar "bank bailouts", which ultimately serve to line the pockets of the richest people in America.
This economic crisis is in large part the result of financial manipulation and outright fraud to the detriment of entire populations, leading to a renewed wave of corporate bankruptcies, mass unemployment and poverty. (more)
Lewis, promoting his latest book "The Big Short: Inside the Doomsday Machine" about the crisis, predicted a war will be waged in Washington as Senate Banking Committee Chairman Christopher Dodd tries to revamp U.S. financial rules.
"Things can be busted up. I really think there is this collision coming that is just starting to happen with the Dodd bill," Lewis said. "There is a war that is about to happen over not just who regulates Wall Street but what the rules are."
"To put it in the crudest possible way, these firms have to be smaller and less profitable," Lewis told Reuters. "If they were regulated properly and the rules of their game were sane, it would be less profitable to be a trader at a big Wall Street firm ... It is really a war over money." (more)
The scheduled start of drilling this month by China National Petroleum Company (CNPC) in Iran’s South Pars gas field could be both a harbinger and explanation of much wider geopolitical developments.
First of all, the $5 billion project – signed last year after years of foot dragging by western energy giants Total and Shell under the shadow of US-led sanctions – reveals the main arterial system for future world energy supply and demand. (more)