7 Reasons Food Shortages Will Become a Global Crisis

Food inflation is here and it's here to stay. We can see it getting worse every time we buy groceries. Basic food commodities like wheat, corn, soybeans, and rice have been skyrocketing since July, 2010 to record highs. These sustained price increases are only expected to continue as food production shortfalls really begin to take their toll this year and beyond.

http://www.activistpost.com/2011/01/7-reasons-food-shortages-will-become.html

Confirmed: We’re Literally On the Brink of Catastrophic Collapse

It’s a Catch 22 and there’s no way out.

Defaulting on or inflating away our debt are the only viable solutions. Both of these will lead to the same end - a complete and total collapse of the way of life Americans have become used to.

Just as Henry Paulson, President Bush, et. al. warned of economic collapse and depression in 2008, Mr. Geithner warns of the very same today. All of the trillions spent, all of the laws passed, and all of the manipulations of global asset markets, have done absolutely nothing to resolve the fundamental systemic problems we faced prior to the onset of the crisis.

It is, quite literally, going to be the end of the world as we know it - and it cannot be stopped.

http://www.shtfplan.com/headline-news/confirmed-were-literally-on-the-brink-of-catastrophic-collapse_01062011

As food costs rise, retailers keep prices stable by shrinking package sizes, quantities

Household brands ranging from Ivory soap to Kraft cheese singles have seen their packages downsized up to 20% over the last few years - even though shoppers are paying just as much, according to a new study by Consumer Reports.

http://www.nydailynews.com/money/2011/01/05/2011-01-05_as_food_costs_rise_retailers_keep_prices_stable_by_shrinking_package_sizes_quant.html

Forecasters’ prediction for oil prices in 2011: Up, up, up

Sanford C. Bernstein & Co., whose estimate last January was within 1 percent of 2010’s mean price of $79.60 a barrel, says crude will average $90 this year. Natixis Bleichroeder Inc., which tied with Bernstein, sees $100 a barrel, 26 percent higher than in 2010. Global oil use will increase 1.7 percent to a record 87.8 million barrels a day this year, and output will rise 0.9 percent, according to the U.S. Energy Department.

http://fuelfix.com/blog/2011/01/03/forecasters-prediction-for-oil-prices-in-2011-up-up-up/

29% Of Americans Say It's Difficult To Afford Food

Affording basic necessities remains a struggle.
51% say it is difficult to afford health care.
48% say the same about their home heating and electric bills.
29% say it is difficult to afford food.

http://www.declineoftheempire.com/2011/01/29-of-americans-say-its-difficult-to-afford-food.html

30 Reasons Why 2011 Is Going To Be Another Crappy Year For America’s Middle Class

Do you think that 2011 will be a good year for America’s middle class? Well, you might not be so optimistic after you read the 30 statistics posted below. The truth is that 2011 is going to be another crappy year for America’s middle class, and there is not a whole lot that you or I can do about it.

http://www.blacklistednews.com/index.php?news_id=12149

Barron's: US Will See Run on Treasurys, Hyperinflation

Investors in U.S. debt around the world are worryingly near a "psychological breaking point" that could force a "run on the bank" against Treasurys.

http://www.moneynews.com/StreetTalk/US-Run-Treasurys-Hyperinflation/2011/01/05/id/381925?s=al&promo_code=B684-1

World Food Prices Surge to Record

World food prices rose to a record in December on higher sugar, grain and oilseed costs, the United Nations said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to Egypt.

An index of 55 food commodities tracked by the Food and Agriculture Organization gained for a sixth month to 214.7 points, above the previous all-time high of 213.5 in June 2008, the Rome-based UN agency said in a monthly report. The gauges for sugar and meat prices advanced to records.

http://www.bloomberg.com/news/2011-01-05/global-food-prices-climb-to-record-on-cereal-sugar-costs-un-agency-says.html

It's Not Your Imagination: Your Juice Has Been Downsized

According to research from Consumer Reports, many companies have been shrinking the size of the products you buy, while charging the same amount for the product.

http://www.cnbc.com/id/40909380/

TARP deadbeats pose major problems

http://www.fiercefinance.com/story/tarp-deadbeats-pose-major-problems/2011-01-01?utm_medium=nl&utm_source=internal

European nations begin seizing private pensions

The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

DUDE, WHERE’S MY JOB?

The storyline being sold to the American public by the White House and the corporate mainstream media is that the economy is growing, jobs are being created, corporations are generating record profits, consumers are spending and all will be well in 2011. The 2% payroll tax cut, stolen from future generations to be spent in 2011, will jumpstart a sound economic recovery. Joseph Goebbels would be proud.

http://www.theburningplatform.com/?p=8936

U.S. foreclosures jumped in the third quarter

About 470,000 homeowners received help either directly from banks or through government programs in the July-September quarter, according to a report released Wednesday by the Office of the Comptroller of the Currency and Office of Thrift Supervision. That's a 17 percent drop from the previous quarter and a decline of 32 percent from the same period last year.

http://www.msnbc.msn.com/id/40840683/ns/business-real_estate/

Grain Prices Heading Higher In 2011 On Tight Supplies

Prices for grains other agricultural commodities will probably continue rising in 2011 as “precariously balanced” fundamentals and a La Nina phenomenon contribute to wide price swings, Rabobank analysts said.

Corn, soybeans and coffee hold the most potential upside among about 10 commodities, Rabobank Agri Commodity Markets analysts led by Luke Chandler said in a Dec. 21 report. While corn, soybean and wheat supplies appear sufficient for the time being, record crops are likely needed next year to keep inventories from tightening further.

http://www.cattlenetwork.com/Article.aspx?oid=1293601&publishdate=2010-12-22&urltitle=Grain-Prices-Heading-Higher-In-2011-On-Tight-Supplies--Rabobank-Says&tid=Archive

Energy, agriculture, gold and silver bullion - protectors from the coming crisis

The Gold Report: Much has happened since our last discussion in September. The election, with the Republicans taking the House and the super majority in the Senate. QE2 (quantitative easing) not only discussed but actually released. The U.S. assisting in the financing in Europe. The benefactors of the 2008 bailout money finally published. And then the hottest topic in Washington for a while, extending the Bush tax credits along with an Obama unemployment tax credit. Have any of these developments changed or firmed your opinion of the U.S. economy or the international monetary crisis?

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=117559&sn=Detail&pid=72068

Lehman 'prophet' fears second crisis if US interest rates are kept low

America is storing up a second financial crisis by keeping interest rates at record low levels, according to David Einhorn, the hedge fund manager who first publicly warned about the financial catastrophe facing Lehman Brothers.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8224338/Lehman-prophet-fears-second-crisis-if-US-interest-rates-are-kept-low.html

Outraged Yet? What if Fed Buys Munis?

California’s delay of a $10 billion municipal bond sale has only fueled existing chatter on trading floors that the Federal Reserve would take the extraordinary step of buying these securities just as it has with Treasuries.

http://www.cnbc.com/id/40259606

111th Congress Added More Debt Than First 100 Congresses Combined

The federal government has accumulated more new debt--$3.22 trillion ($3,220,103,625,307.29)—during the tenure of the 111th Congress than it did during the first 100 Congresses combined, according to official debt figures published by the U.S. Treasury.

That equals $10,429.64 in new debt for each and every one of the 308,745,538 people counted in the United States by the 2010 Census.

http://www.cnsnews.com/news/article/111th-congress-added-more-debt-first-100

Naked emperor and a conspiracy of silence

America's competitors have seen the erosion of American power as if through a time-lapse camera, and they don't like it at all. Obama's self-shrinkage of American influence may give us a civil war in Iraq, a new Israeli-Hezbollah war in Lebanon, a nuclear-armed Iran, a replay of the Cuban missile crisis in Venezuela, an unshackled rogue state in North Korea, an ungovernable Pakistan, and - worst of all - another American recession as the US Treasury struggles to fund a government deficit in excess of 12 percentage points of gross domestic product.

http://www.atimes.com/atimes/Middle_East/LL23Ak04.html

Quantitative Easing 2 as Projected and Announced

http://www.financialsense.com/contributors/bud-conrad/quantitative-easing-two-as-projected-and-announced

The US Economy Is A Complete Horror

It details the depths of the crisis the U.S. economy is truly facing, including its massive debt problem, the declining value of its currency, the unemployment crisis, and the housing crisis.

http://www.businessinsider.com/jeff-gundlach-doubleline-2010-12

Control Government Spending or Face 'Apocalyptic Pain'

"Apocalyptic pain" from an out-of-control debt could cause 18 percent unemployment and a massive contraction in the economy that would destroy the middle class, a leading Republican deficit hawk said in an interview that aired Sunday.

http://www.foxnews.com/politics/2010/12/26/coburn-control-government-spending-face-apocalyptic-pain/?test=latestnews

'We the people' to open next Congress

The Constitution frequently gets lip service in Congress, but House Republicans next year will make sure it gets a lot more than that - the new rules the incoming majority party proposed this week call for a full reading of the country's founding document on the floor of the House on Jan. 6.

http://www.washingtontimes.com/news/2010/dec/23/we-the-people-to-open-next-congress/

Citigroup fears fresh wave of sovereign defaults and bank failures in eurozone

Citigroup has warned of a fresh wave of bank failures and a string of sovereign defaults in Europe unless EU leaders come up with a credible response to the crisis.


http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8217505/Citigroup-fears-fresh-wave-of-sovereign-defaults-and-bank-failures-in-eurozone.html

$2tn debt crisis threatens to bring down 100 US cities

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds, said the CBS programme, apocalyptically titled The Day of Reckoning.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities

Mortgage deduction: A sacred cow whose time is up?

Perhaps the most sacred of all the sacred cows in the tax code, the home mortgage deduction has long been seen as critical to a major element in the American dream — owning your own home. It's also a boon to home builders, construction workers, the financial services industry and local governments that benefited from fatter real estate tax revenue.

But after nearly a century, the mortgage deduction may face a day of reckoning. Though out of the spotlight for the moment while the lame-duck Congress thrashes to an end, the mortgage deduction issue is likely to resurface next year when new representatives — including a lot more deficit-hawk Republicans — take their seats.

http://www.baltimoresun.com/news/sc-dc-adv-home-mortgage-deuction-20101219,0,2988379,full.story

Killing the penny makes little cents in digital world

The recommendation last week from the Senate finance committee that Canada eliminate the pesky penny may seem like a no-brainer when you consider its shrinking value, but getting rid of it is likely to create a bigger problem than the one our un-elected senators are trying to solve.

Earlier this year the committee was charged with investigating the penny's usefulness, because the cost to produce it now exceeds its actual value. During hearings, representatives from the Bank of Canada, industry, consumer groups and charities all told the committee that they wouldn't miss the penny if it were discontinued.

That problem is hoarding. According to the Bank of Canada there are a staggering 20 billion pennies in circulation. Unfortunately the vast majority are sitting in piggy banks, ice cream pails (I've got one of those) and other assorted containers instead of earning their keep.

http://www.calgaryherald.com/business/Killing+penny+makes+little+cents+digital+world/4007089/story.html

Prices soar as investors rush for commodities

COMMODITY prices are breaking records in an investment stampede inspired by extreme weather, demand from China and rising speculation.

The price surge is sweeping almost all commodity markets -- both minerals and farm goods -- and raises the prospect of government and Reserve Bank forecasts proving conservative

http://www.theaustralian.com.au/business/markets/prices-soar-as-investors-rush-for-commodities/story-e6frg91o-1225975188123

Massive Selling of US Currency Lies Ahead

John Williams today was dispatching information regarding gold, silver, M3, nearby massive selling of dollars and inflation. Here is a portion from his commentary, “Despite November 9th’s historic high gold price of $1,421.00 per troy ounce (London afternoon fix) and the multi-decade high silver price of $30.50 per troy ounce (London fix) on December 7th, gold and silver prices have yet to approach their historic high levels, adjusted for inflation.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/15_John_Williams_-_Massive_Selling_of_US_Currency_Lies_Ahead.html

Debt Pyramid Scheme Now the Norm in U.S.:

The tax compromise that the president, after protracted bargaining with Congress, signed into law Friday represents the worst of each party’s principles. Democrats agreed to forgo their insistence on raising taxes to narrow the widening budget deficit. Republicans forgot (again) that they are supposedly the party of smaller government.

http://www.bloomberg.com/news/2010-12-20/debt-pyramid-scheme-now-the-norm-in-u-s-commentary-by-roger-lowenstein.html

Director of United States Mint Resigns

Washington, DC-Director of the United States Mint Edmund C. Moy announced today that he has submitted his resignation to President Barack Obama. He also informed Secretary of the Treasury Timothy Geithner and Treasurer of the United States Rosie Rios of his resignation, effective January 9, 2011. Moy has accepted a position in the private sector.

http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=1190

Public Pensions Face Underfunding Crisis

An analysis by Robert Novy-Marx of the University of Rochester and Joshua Rauh of the Kellogg School of Management finds that public pension plans for America's 50 biggest cities and counties are underfunded by $382 billion--or $14,000 for every household in those same cities. Some of the biggest plans may run out of money to pay promised benefits in as little as five to eight years.

http://abcnews.go.com/Business/city-pensions-americas-50-biggest-municipal-pension-shortfalls/story?id=12366160

Doomsday for the US Dollar: Post Mortem for the World's "Reserve Currency"

Paul Volcker is worried about the future of the dollar and for good reason. The Fed has initiated a program (Quantitative Easing) that presages an end to Bretton Woods 2and replaces it with different system altogether. Naturally, that's made trading partners pretty nervous. Despite the unfairness of the present system--where export-dependent countries recycle capital to US markets to sustain demand---most nations would rather stick with the "devil they know", then venture into the unknown. But US allies weren't consulted on the matter. The Fed unilaterally decided that the only way to fight deflation and high unemployment in the US, was by weakening the dollar and making US exports more competitive. Hence--QE2.

http://www.globalresearch.ca/index.php?context=va&aid=22402

16 Reasons Why California Is The Next Greece

http://www.businessinsider.com/why-california-is-the-next-greece-2010-05#california-has-a-20-billion-budget-gap-despite-last-years-ravaging-cutbacks-1

16 Nightmarish Economic Trends To Watch Carefully In 2011

A Scary Thought Provoking List

http://endoftheamericandream.com/archives/16-nightmarish-economic-trends-to-watch-carefully-in-2011

Citigroup: Dollar May Drop 11 Percent in 2011 as Treasurys Fall

The dollar may drop 11 percent versus the euro next year as investors shun U.S. assets and drive bonds lower, according to Citigroup Inc.

“It’s a bearish U.S. asset dynamic led by the bond market,” Tom Fitzpatrick, chief technical analyst, said in a telephone interview. “This period has a set-up that is amazingly like what we saw in the ‘70s, and is similar to what we saw around 1993.”

The dollar will follow trading patterns from the 1970s, when the housing market experienced a decline similar to the recent drop, and the 1990s, which also saw a slump in the bond market, technical analysts led by New York-based Fitzpatrick wrote in a note to clients. U.S. two-year yields doubled from a low of 3.7 percent in September 1993 to a high of 7.7 percent in December of 1994, pushing bond prices lower.

http://www.moneynews.com/StreetTalk/Citigroup-Dollar-Drop-2011/2010/12/15/id/380047?s=al&promo_code=B4DA-1

General Mills to raise prices

Starting Jan. 3, General Mills /quotes/comstock/13*!gis/quotes/nls/gis (GIS 36.38, +0.00, +0.01%) plans to raise prices by up to 3% on everything from its frozen vegetables to hot snacks, a move intended to offset commodity inflation and to strengthen gross margins that have taken a hit from price wars. In November, the Minneapolis-based company raised some cereal prices.

http://www.marketwatch.com/story/general-mills-profit-rises-on-tax-benefit-2010-12-16

Inflation surges at record pace in December

Inflation accelerated in December at a record pace, prompting worries that interest rates might rise sooner than expected, though the surge was largely due to an unflattering comparison with a year earlier. The jump left markets keenly eying a speech due later from central bank governor Mervyn King for signs of the impact on the bank's medium-term inflation outlook, but most were still upbeat on the chances of inflation eventually coming back to target.

http://news.stv.tv/business/151359-inflation-at-9month-high-in-december/

Food prices rise sharply - and there's more to come

Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.

But it makes sense. Since November 2009, meat, poultry, fish and eggs have surged 5.8percent in price. Dairy and related products have gone up 3.8 percent; fats and oils, 3 percent; and sugar and sweets, 1.2 percent.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/16/MN571GQRDL.DTL

Interesting Junk Silver article by Ol' Remus

It's doomsday plus a few weeks. Say you need to bribe the border guards at the state line but they seem to have all the wristwatches and free range eggs they can use. Hah! There's nothing like a few good ol' silver coins to become their number one tourist, let this man through. Or your gas station's not accepting Visa and the ATMs have gone dark from sea to shining sea and you've got a hard to get reservation at a fallout-free retreat. Hah! Dazzle 'em with the sheen of silver my friend, fill 'er up and happy motoring to you.

http://woodpilereport.com/html/index-194.htm

Derivatives: The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks

The New York Times has just published an article entitled "A Secretive Banking Elite Rules Trading in Derivatives". Shockingly, the most important newspaper in the United States has exposed the steel-fisted control that the big Wall Street banks exert over the trading of derivatives. Just consider the following excerpt from the article....

http://theeconomiccollapseblog.com/archives/derivatives-the-quadrillion-dollar-financial-casino-completely-dominated-by-the-big-international-banks

Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct

JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bullshit: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short.

http://www.zerohedge.com/article/jp-morgan-admits-defeat-cuts-silver-short-position-proves-millions-conspiracy-theorists-abso

Market alarm as US fails to control biggest debt in history

US Treasuries last week suffered their biggest two-day sell-off since the collapse of Lehman Brothers in September 2008. The borrowing costs of the government of the world’s largest economy have now risen by a quarter over the past four weeks.

http://www.telegraph.co.uk/finance/comment/liamhalligan/8196283/Market-alarm-as-US-fails-to-control-biggest-debt-in-history.html

Gold, silver and copper hit record highs on fears of weakening dollar

Gold reached an intra-day high of $1,432.50 an ounce, an all-time record, before profit takers moved in. Silver futures hit $30.75 - the highest level since March 1980 - before easing in afternoon trade.

In an interview on Sunday night on US television, Ben Bernanke, the Federal Reserve chairman, hinted that the central bank may launch further asset purchases to prop up the ailing US economy, although he also said that "it doesn't seem likely" that the economy would fall back into recession.

Copper prices also rose to a record in London on Tuesday, with futures for three-month delivery rising to $9,044 a tonne in intraday trade, beating the previous high of $8,966 set on November 11. Fears are mounting of a future copper squeeze as demand is soon expected to exceed supply.

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8187488/Gold-silver-and-copper-hit-record-highs-on-fears-of-weakening-dollar.html

Fed´s QE Ponzi Scheme begins to Backfire

In a taped interview with CBS’ “60 Minutes” that aired on December 5th, Federal Reserve chief Ben “Bubbles” Bernanketried to brainwash the American public, into believing that “Quantitative Easing” (QE), is absolutely necessary in order to prevent further losses of jobs, and tried to assure his listeners that he has the skills to keep inflation under control. The US-jobless rate would have been far higher, “something like it was in the Depression, at 25%,” -- had the Fed not provided tens of trillions in loans to Wall Street banks and other financial companies, he said.

Two-years ago, the Wall Street Oligarchs played the central role in the greatest financial scandal in the history of the world, - one which wiped out tens of trillions of dollars in wealth, nearly bankrupted giant corporations and entire countries, and plunged the world into the deepest slide in global trade since the Great Depression. Huge profits were made in sub-prime mortgages, based on a Ponzi scheme of exotic financial derivatives and packages. When it came crashing down, the public treasury was looted to cover the financial aristocracy’s losses.

http://www.sirchartsalot.com/article.php?id=149

Taking down America

A soft landing for America 40 years from now? Don't bet on it. The demise of the United States as the global superpower could come far more quickly than anyone imagines. If Washington is dreaming of 2040 or 2050 as the end of the American Century, a more realistic assessment of domestic and global trends suggests that in 2025, just 15 years from now, it could all be over except for the shouting.

http://www.atimes.com/atimes/Middle_East/LL07Ak01.html

Folding the Fed Central bank isn't equipped to save the economy

The Fed does have the tools to increase or decrease the money supply, which means it can control the rate of inflation or deflation. However, the Fed has done a poor job of maintaining the value of the currency, as the dollar is now worth only about one-twenty-second of its 1913 value. The Fed also was supposed to maintain a sound and stable banking system; however, since the Fed was created in 1913, bank failures have been at a higher rate than during the pre-Fed period.

http://www.washingtontimes.com/news/2010/dec/6/folding-the-fed/?page=1

U.S. Posts $150.4 Billion November Budget Deficit

The U.S. government ran its 26th straight monthly budget deficit in November amid wrangling over a package that would extend big tax cuts to Americans trying to recover from recession.

The Treasury Department, in its regular budget monthly statement, said the government spent $150.4 billion than it collected in the second month of fiscal 2011.

http://online.wsj.com/article/SB10001424052748704457604576011683555582342.html?mod=WSJ_hp_MIDDLTopStories

J.P. Morgan and the Great Silver Caper

By selling massive amounts of paper silver in the futures market,” SFGate continues, “J.P. Morgan has been able to suppress the price of the precious metal. It is believed that these short positions are naked (i.e. they are not backed by any physical silver).”

If the silver price were falling, Morgan’s (alleged) short position would be lauded as a stroke of genius. But since the silver price is soaring, Morgan’s (alleged) short position looks much less laudable.

Read more: J.P. Morgan and the Great Silver Caper http://dailyreckoning.com/j-p-morgan-and-the-great-silver-caper/#ixzz17fwAeH00
“In recent days,” SFGate notes, “rumors have been swirling on the Internet that J.P. Morgan’s massive short position is about to blow up in its face in the form of an almighty short squeeze and potential COMEX default, as large traders demand physical delivery of silver that COMEX does not have in its vaults.”

http://dailyreckoning.com/j-p-morgan-and-the-great-silver-caper/

Ron Paul, Author of `End the Fed,' to Lead Panel Overseeing Central Bank

House Financial Services chairman-elect Spencer Bachus, an Alabama Republican, selected Paul, 75, to lead the panel’s domestic monetary policy subcommittee when their party takes the House majority next month, the committee chairman said today.

http://www.bloomberg.com/news/2010-12-09/ron-paul-author-of-end-the-fed-to-lead-fed-oversight-panel.html

Tighter food supplies, high prices to persist

World food prices are set to remain high in 2011/12 with supplies tightening and demand running strong, the United Nations' food agency economist told Reuters on Wednesday after a new jump in prices.

http://www.reuters.com/article/idUSTRE6B02GY20101201

No end in sight to U.S. economic crisis as 'scariest jobs chart ever' shows post-recession unemployment is at its worst since World War Two

As unemployment in the U.S. nears the dreaded 10 per cent mark, it is a chart to chill the bones of any job hunter.

Comparing previous recoveries from all 10 American recessions since 1948 to the current financial crisis, the stark figures show almost no improvement in employment figures in the past year.

Some commentators have described the comparison as 'the scariest jobs chart ever', pointing to the fact that only the 2001 recession took longer to bring employment back to pre-crisis levels.

http://www.dailymail.co.uk/news/article-1336078/Post-recession-unemployment-scariest-job-chart-worst-WW2.html

U.S. Military Prepares for Economic Collapse

Ever since the crash of 2008, the Defense Intelligence establishment has really been paying a lot of attention to global markets and how they could serve as a threat to U.S. National security interests. At one upcoming seminar that we’re going to see here next month, they’re going to be taking a look at a lot of the issues … [including] the use of sovereign wealth funds to manipulate markets, currencies; nation state economic collapse, sovereign default, nation state instability; U.S. Allies’ budgets, deficits, national security infrastructures.

http://www.thenewamerican.com/index.php/usnews/politics/5418-us-military-prepares-for-economic-collapse

At Least One Swiss Bank Has Started Refusing To Hand Over Physical Gold To Clients

“Correct, and through all of that eventually the individual did get his gold...it took lawyers, it took threats of publicity, it took a lot of pressure to do that, which my inference is that that gold was not there. The bank had to scramble, go out and find it somewhere before they could make good delivery.”

http://www.businessinsider.com/jim-rickards-take-gold-out-of-the-bank-2010-12

Food Stamp Rolls Continue to Rise

More people tapped food stamps to pay for groceries in September as the recession and lackluster recovery have prompted more Americans to turn to government safety net programs to make ends meet.

Some 42.9 million people collected food stamps last month, up 1.2% from the prior month and 16.2% higher than the same time a year ago, according to the U.S. Department of Agriculture.

Nationwide 14% of the population relied on food stamps as of September but in some states the percentage was much higher. In Washington, D.C., Mississippi and Tennessee – the states with the largest share of citizens receiving benefits – more than a fifth of the population in each was collecting food stamps.

http://blogs.wsj.com/economics/2010/12/08/food-stamp-rolls-continue-to-rise/

US Treasuries hit by biggest sell-off in two years

US Treasuries suffered their biggest two-day sell-off since the collapse of Lehman Brothers, following a torrid month that has seen borrowing costs for western governments soar.

Germany, Japan and the US have all seen their benchmark market interest rates rise by more than a quarter in the past month while the UK’s has risen by nearly a fifth.

http://www.ft.com/cms/s/0/e550f996-0304-11e0-bb1e-00144feabdc0.html#axzz17ZwUNafO

Firewall needed as eurozone stands on brink of meltdown

Unless Europe’s policymakers seize the initiative to secure the position of Spain and Italy, we could see a new seizure in bank funding markets which would force the euro area either to underpin monetary union with some mutual fiscal guarantees or to fragment.

In the first half of 2008, the banking industry seemed to be recovering from the initial sub-prime shock. Capital was raised and interbank spreads narrowed. Liquidity support and the rescues of Bear Stearns and European banks demonstrated the authorities’ determination to stabilise markets if necessary with public funds.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8182445/Firewall-needed-as-eurozone-stands-on-brink-of-meltdown.html

Banks to taxpayers: Get over it

In the throes of an investor panic in the fall of 2008, U.S. financial institutions stuck to their story: We’re fine, trust us.

Last week, more than two years later, the Federal Reserve unveiled how those same financial institutions tapped emergency lending programs to survive. The final tally — $3.3 trillion in loans — exceeded even the most skeptical analyst expectations.

The Fed had been hesitant to release the data for fear it could rattle the markets. But the markets actually rose on Wednesday, the day of the release. I have a theory why, which we’ll get into later.

http://www.marketwatch.com/story/mind-boggling-losses-at-the-banks-2010-12-06?link=kiosk

We're all doomed!!! We still haven't woken up to how much poorer the West is going to be in the future...

http://www.dailymail.co.uk/news/article-1336300/Were-doomed--We-havent-woken-poorer-West-going-future-.html

Bond Prices Plunge for 2nd Day on Deficit Fears

U.S. Treasurys plunged Wednesday, extending Tuesday's sharp losses and pushing benchmark yields to a six-month high, after a deal in Washington to extend tax cuts fueled fears of inflation and a swelling budget deficit.

The dip in prices brought some buyers to the table in an auction of $21 billion of reopened 10-year notes, which was part of $66 billion of coupon-bearing securities sales this week. Trade was volatile and prices bounced off the lowest levels of the day after the auction, which analysts said saw about average demand.

http://www.cnbc.com/id/40565833

Metal hoarders playing a dangerous game

Several banks and funds, including JP Morgan and BlackRock Asset Manangement have signalled that they plan to create exchange-traded products in physical copper. Like the gold exchange-traded products, investors will be able to buy an amount of real metal, held on their behalf in warehouses, rather than copper futures and it is the need to acquire the physical product that has roused suspicion that it is a financial institution hoarding physical metal in preparation for the launch of its ETP.

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/carl-mortished/metal-hoarders-playing-a-dangerous-game/article1827727/?bcsi_scan_24DE46460B4E2EF0=d+cs4Aw7/suWcjs/Vs90bd9Vn48SAAAAL5feDA==

How To Prepare For The Coming Financial Apocalypse

Apocalypse Preparation #1: Become Less Dependent On Your Job
Apocalypse Preparation #2: Get Out Of Debt
Apocalypse Preparation #3: Reduce Expenses
Apocalypse Preparation #4: Purchase Land
Apocalypse Preparation #5: Learn To Grow Food
Apocalypse Preparation #6: Find A Reliable Source Of Water
Apocalypse Preparation #7: Explore Alternative Energy Sources
Apocalypse Preparation #8: Store Supplies
Apocalypse Preparation #9: Protect Your Assets With Gold And Silver
Apocalypse Preparation #10: Learn Self-Defense
Apocalypse Preparation #11: Keep Yourself Fit
Apocalypse Preparation #12: Make Friends

http://www.munknee.com/2010/12/how-to-prepare-for-the-coming-financial-apocalypse/

Will governments buy silver?

Over the last several months we have been pondering if governments will come into the silver market. Before we get into that, it is important to note that governments are very different animals and there are over two hundred of them out there. Therefore, it is a very liberal generalization to lump them all together as if their needs, objectives and agendas were the same, thus expecting them all to act in the same fashion for the same reasons, is a big stretch. That said, it's the stigma, the psychological effect, the sentiment and the message it would send to markets that prompts us to group them together in investors' minds as a market force.

http://news.silverseek.com/SilverStrategies/1291311666.php

H.R. 6162: Coin Modernization, Oversight, and Continuity Act of 2010

http://www.govtrack.us/congress/bill.xpd?bill=h111-6162&tab=summary

Why Americans Should Expose J.P. Morgan By Buying Silver

The Federal Reserve, an unconstitutional fourth branch of government, is a plague upon our land that operates under the guise of legitimate authority while reaping great rewards for its private shareholders, among whom J.P. Morgan Chase is one of the biggest.

J.P. Morgan Chase, a company whose roots are about as American as Sputnik or Mao Tse Tung, has directly profited from printing enormous sums of money to the Central Government in D.C. and loaning each cursed dollar with interest on the backs of our children. (Morgan himself owned only 19% of Morgan assets. The rest was owned by the European Rothschild family after a series of bailouts and rescues.) Despite the warnings, cries and curses of leaders from Thomas Jefferson to Andrew Jackson, the American people have handed the International Bankers control of our nation, our foreign policy and the protection of our liberties.

http://statesmansentinel.com/americans-expose-jp-morgan-buying-silver?bcsi_scan_24DE46460B4E2EF0=eIBxHCqKL+Nw/XWs69ipaqwkF2USAAAAlC7QDA==

Global Food Prices About To Break An All Time High

Inflation in emerging markets is hitting food prices hard, and now we have raw data from the UN to confirm.

http://www.businessinsider.com/chart-of-the-day-un-food-price-index-2010-12

America Bails Out A Thankless World

So America has once again saved the rest of the civilized world — this time financially. But don't expect to hear many thank-yous from the recipients of trillions in secret Federal Reserve cash.

http://www.investors.com/NewsAndAnalysis/Article/555577/201012021902/America-Bails-Out-A-Thankless-World.htm

Government can’t print money properly

Now this is interesting. Was this a mistake, a heist or a way to remove US dollars from the system?


As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print the money correctly.

Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC.


http://news.yahoo.com/s/yblog_thelookout/20101206/us_yblog_thelookout/government-cant-print-money-properly;_ylt=AhAYvdfipB.tOnoQMmiSNCms0NUE;_ylu=X3oDMTNmZXBpN2tyBGFzc2V0A3libG9nX3RoZWxvb2tvdXQvMjAxMDEyMDYvZ292ZXJubWVudC1jYW50LXByaW50LW1vbmV5LXByb3Blcmx5BHBvcwM4BHNlYwN5bl9tb3N0X3BvcHVsYXIEc2xrA2dvdmVybm1lbnRjYQ--#mwpphu-container

Consumer Price Inflation: The Wolf at the Door

And things must be heating up over here in the USA, too, as James Turk of The Free Gold Money Report notes that “since the date of its March 18, 2009 QE announcement, the CRB Continuing Commodity Index has risen 61.7%. Gold has risen 54.0%, while the US Dollar Index has dropped -7.2%.”

http://dailyreckoning.com/consumer-price-inflation-the-wolf-at-the-door/

A Day of Reckoning

One European country after another has been forced to swallow painful and abrupt spending cuts after years of borrowing too much. That borrowing spree came to an ugly end in Greece where the public reacted angrily when the government had to cut pensions and other spending.

And many worry that the U.S. is headed in the same direction.

And he notes that being that far in debt sends us down a dark economic road. "We do face a future that looks like stagnation, high unemployment, low wage growth, and a real problem with inflation and high interest rates."

"And we don't have any money left over," says economist Doug Holtz-Eakin. "So that things we think of as government -- building roads, educating our kids, national defense and securing the borders -- there's no money for that."

http://politics.blogs.foxnews.com/2010/12/02/day-reckoning

America’s Leading Export: Inflation

Inflation is on everyone’s lips these days…everyone in Asia, that is. Because Fed Chairman, Ben Bernanke is so busy pumping up the US money supply to battle a perceived deflationary threat here at home, he is putting pressure on overseas economies to print money at the same pace, in order to prevent their currencies from appreciating against the dollar and, thereby, become less “competitive.” The mechanics of all this are a bit complicated, but suffice it to say that the US is “exporting inflation.”

http://dailyreckoning.com/americas-leading-export-inflation/

Rice May Triple in 18 Months as Supplies Tighten

Rice, the staple food of more than three billion people, may as much as triple in 18 months as flooding in exporters including Thailand tightens supplies and demand climbs, according to Duxton Asset Management Pte.

http://www.bloomberg.com/news/2010-12-01/rice-may-triple-in-18-months-as-supplies-tighten-duxton-s-peter-forecasts.html

Federal Reserve reveals trillions dished out to world banks to aid financial crisis

The Federal Reserve has revealed details of the trillions of dollars it gave in emergency aid to U.S. and foreign banks during the financial crisis.
New documents show it paid out a staggering $1.5trillion (almost £1trillion) to British banks - over a third of the total money lent - in an effort to prop up the financial sector.

The Fed dished out $2.2trillion to banking giant Citigroup, $2.1trillion to Merrill Lynch and $2trillion to Morgan Stanley.
In addition, payments have also be made to Bear Stearns ($960billion), Bank of America ($887billion), Goldman Sachs ($615billion), JPMorgan Chase ($178billion) and Wells Fargo ($154billion).

http://www.dailymail.co.uk/news/article-1334929/Federal-Reserve-reveals-trillions-dished-world-banks-aid-financial-crisis.html

Euro slide gathers pace on debt crisis fears

The currency fell to $1.2997 against the dollar during trading on Tuesday morning, its lowest point in two months although it later clawed back losses after US consumer confidence brightened in November to the highest level in five months.

One area of concern is that Spain’s economy is twice as big as that of Greece, Ireland and Portugal combined, prompting fears the euro region’s €750bn safety net may not be big enough if the country requires aid.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8170267/Euro-slide-gathers-pace-on-debt-crisis-fears.html

Mounting State Debts Stoke Fears of Looming Crisis

The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners early, more to cut expenses than to reward good behavior. And in Newark, the city laid off 13 percent of its police officers last week.

While next year could be even worse, there are bigger, longer-term risks, financial analysts say. Their fear is that even when the economy recovers, the shortfalls will not disappear, because many state and local governments have so much debt — several trillion dollars’ worth, with much of it off the books and largely hidden from view —that it could overwhelm them in the next few years.

http://www.msnbc.msn.com/id/40514947/ns/us_news-the_new_york_times

Mystery trader captures 80pc of London's copper market

The unknown buyer has been building up the dominant position since at least last week, putting a squeeze on the market.

According to the rules of the London Metal Exchange, the trader must lend out copper if it holds between 50pc and 80pc of the total to maintain day-to-day liquidity in the market. The trader is currently lending at a 0.5pc premium to the cash price.

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8178797/Mystery-trader-captures-80pc-of-Londons-copper-market.html

The U.S. Economy: Stand by for more worse news

http://www.opinion-maker.org/2010/11/the-u-s-economy-stand-by-for-more-worse-news/?bcsi_scan_24DE46460B4E2EF0=AgVmUkD3hmJGXpNCdZqZQsqfpPMQAAAAzRyTCw==

More than 8 million drop out of credit card use

An analysis by credit reporting agency TransUnion found that use of general purpose credit cards bearing MasterCard or Visa logos, or issued by Discover or American Express, fell more than 11 percent in the third quarter, compared with the July to September period last year.

About 62 million people now have an active card, compared with 70 million a year ago.

http://finance.yahoo.com/news/More-than-8-million-drop-out-apf-2027074900.html?x=0

China’s gold imports surge fivefold

The surge, which comes as Chinese investors look for insurance against rising inflation and currency appreciation, puts Beijing on track to overtake India as the world’s largest consumer of gold and a significant force in global gold prices.

The size of the imports – more than 209 tonnes of gold during the first 10 months of the year, a fivefold increase from an estimate of 45 tonnes last year – was revealed on Thursday. In the past, China has kept the volume secret.

http://www.ft.com/cms/s/0/9742847e-fe3e-11df-abac-00144feab49a.html#axzz171Ea6BLb

Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms

The Fed's efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans.

The biggest users of the Fed lending programs were some of the world's largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain's Barclays, according to more than 21,000 loan records released Wednesday under new financial regulatory legislation.

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/01/AR2010120106870.html

Why Owning Cash Is More Speculative Than Owning Gold

This sums up the problem. Instead of gold, people commonly think of paper money as the only medium of exchange and as a store of value; cash is after all their unit of account. They see the gold price rising when they should be seeing the value of paper money falling. Because cash is everyone’s unit of account it is wrongly seen as the ultimate risk-free asset. This is also the fund manager’s approach to investment: his/her investment returns are calculated in paper money, so she/he cannot account for a superior class of asset.

http://www.munknee.com/2010/12/why-owning-cash-is-more-speculative-than-owning-gold/

US Ready to Back Bigger EU Stability Fund

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."

http://www.cnbc.com/id/40454469

Fed ID's companies that used crisis aid programs

New documents show that the most loan and other aid for U.S. institutions over time went to Citigroup ($2.2 trillion), followed by Merrill Lynch ($2.1 trillion), Morgan Stanley ($2 trillion), Bear Stearns ($960 billion), Bank of America ($887 billion), Goldman Sachs ($615 billion), JPMorgan Chase ($178 billion) and Wells Fargo ($154 billion).

Foreign banks also benefited from the Fed's aid. They included Swiss bank UBS, which borrowed more than $165 billion, Deutsche Bank ($97 billion) and the Royal Bank of Scotland ($92 billion).

http://news.yahoo.com/s/ap/20101201/ap_on_bi_ge/us_fed_crisis_lending

European banks took big slice of Fed aid---AMAZING

Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system.

http://www.ft.com/cms/s/0/4dd95e42-fd6d-11df-a049-00144feab49a.html#axzz16wOOtIT9

Fed made $9 trillion in emergency overnight loans

WOW---this is AMAZING!!!

The Federal Reserve made $9 trillion in overnight loans to major banks and Wall Street firms during the financial crisis, according to newly revealed data released Wednesday.

The loans were made through a special loan program set up by the Fed in the wake of the Bear Stearns collapse in March 2008 to keep the nation's bond markets trading normally.

http://money.cnn.com/2010/12/01/news/economy/fed_reserve_data_release/index.htm?hpt=T2

Spain could be forced to seek a bail-out within months, warns Barclays

The weight of bank debt needing refinancing next year could threaten Spain's solvency and force it to become the next European country to seek a bail-out, according to a report from the investment banking arm of Barclays.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8163705/Spain-could-be-forced-to-seek-a-bail-out-within-months-warns-Barclays.html

Save The Dollar, Not The Fed

The problem with government is that when it isn't benefiting politicians, bureaucrats and special interests at the expense of everyone else, its handy work is aimed at the symptoms of problems rather than at the problems themselves. This misdirection not only masks the true cause of problems it also exacerbates them, which, as Ronald Reagan said, makes government part of the problem, not the solution. The more problems government attempts to solve, the more new problems it creates for itself to solve, a sort of bureaucratic perpetual motion machine.

http://www.forbes.com/2010/11/24/dollar-inflation-federal-reserve-opinions-contributors-lawrence-hunter.html?boxes=Homepagelighttop

Pension reserve funds to be spent on banks

UP to €15 billion from the National Pensions Reserve Fund, set aside when the Celtic Tiger was still roaring, is likely to be used to recapitalise three of the country’s banks.

http://www.irishexaminer.com/home/pension-reserve-funds-to-be-spent-on-banks-137796.html

Caterpillar issues first note in Chinese currency

PEORIA, Ill. (AP) -- A finance subsidiary of heavy machinery maker Caterpillar Inc. will issue its first-ever medium-term note that is denominated in the Chinese currency, the yuan.

Caterpillar Financial Services Corp. said Wednesday that the issuance was conducted in Hong Kong for institutional investors and totaled 1 billion yuan, or about $150 million. The issuance is at a coupon rate of 2 percent, maturing in December 2012.

Cat Financial said its transaction is one of the first yuan-denominated issuances of this size by a multinational company. The company will use proceeds from the deal to fund Cat Financial as it provides competitive financing options for Caterpillar customers in China through its subsidiary, Caterpillar (China) Financial Leasing Co.

http://finance.yahoo.com/news/Caterpillar-issues-first-note-apf-3193389494.html?x=0

Silver Shortages Accelerate As Wholesale Supplies Plunge:

Is the Kriger/Keiser "Short Squeeze JPM to Oblivion" plan working? Judging by the wholesale availability of silver (or lack thereof) the answer is a resound yes. In Coin Updates News we read that "as of today, there are no longer any regular wholesale supplies of the 1 ounce through 100 ounce silver rounds and bars available for immediate delivery. It may be possible to locate incidental quantities of some product, but most wholesalers are now promising two to four weeks delivery to allow time for the silver to be fabricated."

http://www.zerohedge.com/article/silver-shortages-accelerate-wholesale-supplies-plunge-kriegerkesier-1-jp-morgan-0

BOB RUBIN: "US In Terribly Dangerous Territory," Bond Market May Be Headed For "Implosion"

Warning of the risk of an "implosion" in the bond market, former Treasury Secretary Robert Rubin says the soaring federal budget deficit and the Fed's quantitative easing are putting the U.S. in "terribly dangerous territory."

Rubin, who issued a similar warning about the bond market at The FT's "Future of Finance" conference in October, said Congress' vote on raising the deficit ceiling next spring could be the "trigger" for a rout in the Treasury market. Several Republican and Tea Party candidates vowed to not increase the government's debt ceiling unless Democrats agree to sharp cuts in spending that may not be politically tenable.

http://www.businessinsider.com/rubin-bond-market-implosion-2010-11

Why You Should Save Your Nickels – Massive Inflation Ahead

What is inflation you may ask? Rather than explain using complicated economic terms and charts I will show you first hand. Allow us to take a time machine back to the year 1960. A used car costs close to $800, a gallon of gas $0.31, a gallon of milk $0.49, and the cost of a new home was a mere $16,000. Reach into anyone’s pocket at that time and you will find something very different than you would today…Real Money. Quarter’s and dime’s were both made of 90% silver. By today’s current silver prices ($16.50 / oz) a single quarter would be worth about $3.00 and a dime would be about $1.20. Now just imagine if you could return to today’s time with a pocket full of 1960′s quarters and dimes.

http://recessionreadyamerica.com/2009/09/why-you-should-save-your-nickels-massive-inflation-ahead/

Dollar to Become World's `Weakest Currency,' Drop to 75 Yen JPMorgan Says

The dollar may fall below 75 yen next year as it becomes the world’s “weakest currency” due to the Federal Reserve’s monetary-easing program, according to JPMorgan & Chase Co.

The Fed said on Nov. 3 it will buy $75 billion of Treasuries a month through June to cap borrowing costs. The central bank has kept its benchmark rate in a range of zero to 0.25 percent since December 2008. The Bank of Japan on Oct. 5 cut its key rate to a range of zero to 0.1 percent and set up a 5 trillion yen ($59.9 billion) asset-purchase fund.

http://www.bloomberg.com/news/2010-11-18/dollar-to-become-world-s-weakest-currency-drop-to-75-yen-jpmorgan-says.html

Food price index jumps 10.30%

India's food price index rose 10.30%, while the fuel price index climbed 10.57% in the year to Nov. 6, government data on Thursday showed.

In the prior week, annual food and fuel inflation stood at 12.30% and 10.67%, respectively.

The primary articles price index was up 13.30% in the latest week compared with an annual rise of 14.87% a week earlier.

The wholesale price index , the most widely watched gauge of prices in India, rose 8.58% in October from a year earlier compared with 8.62% in September, data on Monday showed.

http://www.moneycontrol.com/news/economy/food-price-index-jumps-1030-_499955.html

China to subsidize food after price spike

BEIJING – China's government announced food subsidies for poor families Wednesday as it tries to cool a double-digit surge in prices that communist leaders worry might stir unrest.

The Cabinet promised to ease shortages of vegetables and grain that helped push up food prices by more than 10 percent in October. It promised more supplies of diesel to end fuel shortages that have disrupted trucking and industry.

http://news.yahoo.com/s/ap/20101117/ap_on_bi_ge/as_china_inflation

WHAT’S REALLY BEHIND QE2?

The deficit hawks are circling, hovering over QE2, calling it just another inflationary bank bailout. But unlike QE1, QE2 is not about saving the banks. It’s about funding the federal deficit without increasing the interest tab, something that may be necessary in this gridlocked political climate just to keep the government functioning.

On November 15, the Wall Street Journal published an open letter to Fed Chairman Ben Bernanke from 23 noted economists, professors and fund managers, urging him to abandon his new “quantitative easing” policy called QE2. The letter said:

We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued. . . . The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.

http://www.webofdebt.com/articles/qe2.php

Ireland fears civil unrest as bank crisis deepens

One of Ireland's biggest trade unions warned today that the nation was on the brink of civil unrest as government officials negotiated a multibillion euro bailout for the country's ailing banks.

The Technical Engineering and Electrical Union said further "draconian" public sector cuts of €15bn (£13bn) over four years could lead to street disorder. It urged a campaign of civil disobedience unless the taoiseach, Brian Cowen, calls an immediate election. An emergency cabinet tomorrow will discuss the new round of cuts.

http://www.guardian.co.uk/business/2010/nov/20/ireland-union-devoy-bank-crisis

Fed Warns of 4.25 Million More Foreclosures Through 2012

The Federal Reserve expects about 4.25 million more foreclosure filings through 2012, and problems with the home-seizure process may threaten the U.S. housing and economic recovery, Fed Governor Elizabeth Duke said in prepared testimony.

http://www.moneynews.com/StreetTalk/Fed-Warns-Foreclosures/2010/11/18/id/377430?s=al&promo_code=B263-1

Silver Sales to Surge as Investors Seek Protection, Perth Mint Forecasts

Silver-coin sales will climb as investors seek to protect their wealth from weakening currencies, according to the Perth Mint, producer of about 6 percent of the world’s gold bullion.

The mint’s outlook adds to signs that global demand for silver, which trades for about 50 times less than gold per ounce, will increase. The Royal Canadian Mint said last week that silver-coin sales will jump more than 50 percent this year. The Perth Mint may match that gain, Currie said in an interview.

http://www.bloomberg.com/news/2010-11-22/silver-sales-to-surge-as-investors-seek-protection-perth-mint-forecasts.html

Pessimistic Fed to slash growth forecasts

The US Federal Reserve will slash its growth forecasts and predict higher unemployment when it releases updated economic projections this week.

The Fed will release the latest forecasts made by members of its rate-setting open market committee on Tuesday, alongside the minutes of their November meeting, giving a complete picture of why they launched a new $600bn round of asset purchases.

http://www.ft.com/cms/s/0/b92ecb0c-f596-11df-99d6-00144feab49a.html#axzz15yI1tXii