HOLY !@#!! Treasury Auction Schedule: $235 Billion Over The Next Week!

Jim Rogers:
“There is a very good chance that America will default on its government debt sometimes during this administration.”
“And there is an extremely good chance that the currency will be very debased and weakened a lot during this presidency.”

(JIM ROGERS WAS RIGHT (05/06/09))

It’s coming!


Oh My……

Let’s see if I can count this up….

70 day CMBs, $30 billion (tomorrow)
13 week Bills, $32 billion (July 27th)
26 week Bills, $31 billion (July 27th)
52 week Bills, $27 billion (July 28th)
2 year Notes, $42 billion (July 28th)
5 year Notes, $39 billion (July 29th)
7 year Notes, $28 billion (July 30th)
19 year, 6 month TIPS (reopened), $6 billion (July 27th)

That’s two hundred thirty-five billion dollars over the next week!

Almost one quarter of a trillion……. geejus.

I guess you should get while the getting is good, but this is going totally parabolic. That money has to come out of somewhere, by the way, in order for the sale to succeed, which is going to get rather interesting at some point – but exactly where it matters is impossible to know.

I expected that when we crossed the $100 billion threshold in a week the market would throw up all over it, but it didn’t. Now we’ve got the government trying to sell a quarter of a trillion dollars in debt over the next week, the announcement is out there, and while the bond market is selling off to a material degree equities could care less!

This is flat-out insane. At this run rate we would be trying to sell twelve trillion dollars over one year’s time, an obviously ridiculous and impossible-to-peddle amount of debt at any price.

When does the rest of the world wake up (not to mention the primary dealers) and say “NO!”? Never? Is there a truly insatiable demand for our government’s debt, despite the fact that President Obama got up on the national stage last night and promised to spend another trillion dollars we don’t have?

Read moreHOLY !@#!! Treasury Auction Schedule: $235 Billion Over The Next Week!

US to Sell Record Amount of Debt Next Week, Treasuries Fall

‘In debt we trust’.


federal-reserve
Traffic passes by the U.S. Federal Reserve building in Washington (Bloomberg)

July 23 (Bloomberg) — Treasuries declined, with 10-year notes falling the most in almost seven weeks, as stocks rose and the U.S. announced plans to sell a record $115 billion in notes in four auctions next week.

Yields on government securities rose as the Dow Jones Industrial Average touched above 9,000 for the first time since January. It will be only the second time the Treasury auctions three so-called coupon issues and an inflation-linked maturity in a single week since the U.S. started selling debt regularly in 1976 as the government accelerates an unprecedented pace of borrowing to stimulate the economy and service deficits.

Read moreUS to Sell Record Amount of Debt Next Week, Treasuries Fall

US: Biggest pension funds record steep losses of almost $100bn

The two largest pension funds in the US have recorded steep losses following the turmoil in stock markets, with the value of their combined portfolios shrinking by almost $100bn.

The California Public Employees’ Retirement System (Calpers) and the California State Teachers’ Retirement System (Calstrs) were hit by the real estate slowdown and the slump in global equities. Calpers said the fall in the value of its assets was the most severe in its history.

Read moreUS: Biggest pension funds record steep losses of almost $100bn

UK: Pubs closing at rate of 52 a week

The rate of pub closures is accelerating, with 52 going out of business every week at a cost of 24,000 jobs over the past year, figures show.

Almost 2,400 pubs and bars have vanished from villages and towns in the past 12 months, according to research for the British Beer & Pub Association (BBPA). Local pubs serving small communities have been the worst hit, the association said.

The number of closures represents the steepest rate of decline since records began in 1990 and has risen by a third compared with the same period last year, when 36 pubs were closing every week.

Read moreUK: Pubs closing at rate of 52 a week

UK factory orders fall at fastest rate in 17 years

British factories suffered a bigger-than-expected drop in orders this month raising new fears about the health of the economy.

In July, manufacturing orders fell at their fastest rate since January 1992, according to the Confederation of British Industry (CBI).

The CBI’s gauge of orders dropped from -51 to -59, far below the -45 measure expected.

However, there was some good news as factories indicated that the business environment had improved over the past three months, with the balance rising to -16, the highest since October 2007.

There was also a slowdown in the pace of decline of overall output. Some 43 per cent of businesses said output had declined in the three months to July, while just 12 per cent said their output rose. The resulting balance of -31 indicates that output is still falling, but at a slower rate than in the three months to June when the balance was -53.

Read moreUK factory orders fall at fastest rate in 17 years

Ben Bernanke does not know which foreign banks were given $500 billion!


Grayson grills Fed chairman on destination of credit swaps

APTOPIX Bernanke

Federal Reserve chairman Ben Bernanke was confronted yesterday by Congressman Alan Grayson about which foreign banks were the recipients of Federal Reserve credit swaps, but he was unable to provide an answer as to where over half a trillion dollars had gone.

Asked which European financial institutions received the money, which was handed out by The Federal Open Market Committee (FOMC), a component of the Federal Reserve System, Bernanke responded, “I don’t know.”

“Half a trillion dollars and you don’t know who got the money?” asked Grayson.

As we have previously reported, the destination of trillions in bailout funds remains hidden after the Fed refused to disclose where it had gone despite a lawsuit filed by Bloomberg.

Read moreBen Bernanke does not know which foreign banks were given $500 billion!

The Longest Solar Eclipse of the Century

India Asia Eclipse
A total solar eclipse is seen in Varanasi, India, Wednesday, July 22, 2009. The longest solar eclipse of the 21st century pitched a swath of Asia from India to China into near darkness Wednesday as millions gathered to watch the phenomenon. (AP Photo/Saurabh Das)

Related article: Two killed in stampede during eclipse in India (China Daily)


Darkness falls in Asia during total eclipse, luring masses

State television in China broadcast this image of the eclipse.
State television in China broadcast this image of the eclipse.

(CNN) — The longest solar eclipse of the century cast a wide shadow for several minutes over Asia and the Pacific Ocean Wednesday, luring throngs of people outside to watch the spectacle.

Day turned into night, temperatures turned cooler in cities and villages teemed with amateur stargazers.

The total eclipse started in India on Wednesday morning and moved eastward across Nepal, Bangladesh, Bhutan, Vietnam, China and parts of the Pacific. Millions cast their eyes towards the heavens to catch a rare view of the sun’s corona.

Cloud cover in some areas prevented people from fully savoring the phenomenon. Still, many were awed.

Tim O’Rourke, a 45-year-old freelance photographer from Detroit, Michigan, lives in Hong Kong but traveled up to Shanghai — touted as one of the best spots to watch the eclipse. Video Watch the ‘exceptional’ eclipse »

“It was pitch black like midnight,” said O’Rourke, standing in People’s Square with what appeared to be a crowd of thousands.

“Definitely not disappointed we came. Of course it would have been much better with nice weather, blue skies. But still it was a great experience, it was a lot of fun.” he said. Photo Viewing the eclipse in pictures »

Total eclipses occur about twice a year as the moon passes between the Earth and the sun on the same plane as Earth’s orbit. Wednesday’s event lasted up to more than six minutes in some places. Video Watch what a total solar eclipse entails »

In India, where an eclipse pits science against superstition, thousands took a dip in the Ganges River in the Hindu holy city of Varanasi to cleanse their souls, said Ajay Kumar Upadhyay, the district’s most senior official. Send us your photos of the eclipse

Read moreThe Longest Solar Eclipse of the Century

COULD YOU SURVIVE WITHOUT MONEY? MEET THE GUY WHO DOES

In Utah, a modern-day caveman has lived for the better part of a decade on zero dollars a day. People used to think he was crazy


Photograph by Mark Heithoff

DANIEL SUELO LIVES IN A CAVE. UNLIKE THE average American-wallowing in credit-card debt, clinging to a mortgage, terrified of the next downsizing at the office-he isn’t worried about the economic crisis. That’s because he figured out that the best way to stay solvent is to never be solvent in the first place. Nine years ago, in the autumn of 2000, Suelo decided to stop using money. He just quit it, like a bad drug habit.

His dwelling, hidden high in a canyon lined with waterfalls, is an hour by foot from the desert town of Moab, Utah, where people who know him are of two minds: He’s either a latter-day prophet or an irredeemable hobo. Suelo’s blog, which he maintains free at the Moab Public Library, suggests that he’s both. “When I lived with money, I was always lacking,” he writes. “Money represents lack. Money represents things in the past (debt) and things in the future (credit), but money never represents what is present.”

On a warm day in early spring, I clamber along a set of red-rock cliffs to the mouth of his cave, where I find a note signed with a smiley face: CHRIS, FEEL FREE TO USE ANYTHING, EAT ANYTHING (NOTHING HERE IS MINE). From the outside, the place looks like a hollowed teardrop, about the size of an Amtrak bathroom, with enough space for a few pots that hang from the ceiling, a stove under a stone eave, big buckets full of beans and rice, a bed of blankets in the dirt, and not much else. Suelo’s been here for three years, and it smells like it.

Night falls, the stars wink, and after an hour, Suelo tramps up the cliff, mimicking a raven’s call-his salutation-a guttural, high-pitched caw. He’s lanky and tan; yesterday he rebuilt the entrance to his cave, hauling huge rocks to make a staircase. His hands are black with dirt, and his hair, which is going gray, looks like a bird’s nest, full of dust and twigs from scrambling in the underbrush on the canyon floor. Grinning, he presents the booty from one of his weekly rituals, scavenging on the streets of Moab: a wool hat and gloves, a winter jacket, and a white nylon belt, still wrapped in plastic, along with Carhartt pants and sandals, which he’s wearing. He’s also scrounged cans of tuna and turkey Spam and a honeycomb candle. All in all, a nice haul from the waste product of America. “You made it,” he says. I hand him a bag of apples and a block of cheese I bought at the supermarket, but the gift suddenly seems meager.

Suelo lights the candle and stokes a fire in the stove, which is an old blackened tin, the kind that Christmas cookies might come in. It’s hooked to a chain of soup cans segmented like a caterpillar and fitted to a hole in the rock. Soon smoke billows into the night and the cave is warm. I think of how John the Baptist survived on honey and locusts in the desert. Suelo, who keeps a copy of the Bible for bedtime reading, is satisfied with a few grasshoppers fried in his skillet.

HE WASN’T ALWAYS THIS WAY. SUELO graduated from the University of Colorado with a degree in anthropology, he thought about becoming a doctor, he held jobs, he had cash and a bank account. In 1987, after several years as an assistant lab technician in Colorado hospitals, he joined the Peace Corps and was posted to an Ecuadoran village high in the Andes. He was charged with monitoring the health of tribespeople in the area, teaching first aid and nutrition, and handing out medicine where needed; his proudest achievement was delivering three babies. The tribe had been getting richer for a decade, and during the two years he was there he watched as the villagers began to adopt the economics of modernity. They sold the food from their fields-quinoa, potatoes, corn, lentils-for cash, which they used to purchase things they didn’t need, as Suelo describes it. They bought soda and white flour and refined sugar and noodles and big bags of MSG to flavor the starchy meals. They bought TVs. The more they spent, says Suelo, the more their health declined. He could measure the deterioration on his charts. “It looked,” he says, “like money was impoverishing them.”

Read moreCOULD YOU SURVIVE WITHOUT MONEY? MEET THE GUY WHO DOES

New York Medicaid Fraud May Reach Into Billions

It was created 40 years ago to provide health care for the poorest New Yorkers, offering a lifeline to those who could not afford to have a baby or a heart attack. But in the decades since, New York State’s Medicaid program has also become a $44.5 billion target for the unscrupulous and the opportunistic.

It has drawn dentists like Dr. Dolly Rosen, who within 12 months somehow built the state’s biggest Medicaid dental practice out of a Brooklyn storefront, where she claimed to have performed as many as 991 procedures a day in 2003. After The New York Times discovered her extraordinary billings through a computer analysis and questioned the state about them, Dr. Rosen and two associates were indicted on charges of stealing more than $1 million from the program.

It has drawn van services, intended as medical transportation for patients who cannot walk unaided, that regularly picked up scores of people who walked quite easily when a reporter was watching nearby. In cooperation with medical offices that order these services, the ambulettes typically cost the taxpayers more than $50 a round trip, adding up to $200 million a year. In some cases, the rides that the state paid for may never have taken place.

School officials around the state have enrolled tens of thousands of low-income students in speech therapy without the required evaluation, garnering more than $1 billion in questionable Medicaid payments for their districts. One Buffalo school official sent 4,434 students into speech therapy in a single day without talking to them or reviewing their records, according to federal investigators.

Read moreNew York Medicaid Fraud May Reach Into Billions

Obama Administration Takes Aim At Gun-Rights Revolt: ‘New Pro-Gun Laws In Montana And Tennessee Are Invalid’

President Obama’s Supreme Court nominee: “Second Amendment Rights Do Not Apply To The States”
Lou Dobbs: Obama Pushes Anti-Gun Treaty
Chuck Baldwin: It Is Getting Very Serious Now


unconstitutional-obama

The Obama administration is raising the stakes in a fight over states’ rights and firearm ownership by arguing that new pro-gun laws in Montana and Tennessee are invalid.

In the last few months, a grass-roots, federalist revolt against Washington, D.C. has begun to spread through states that are home to politically active gun owners. Montana and Tennessee have enacted state laws saying that federal rules do not apply to firearms manufactured entirely within the state, and similar bills are pending in Texas, Alaska, Minnesota, and South Carolina.

Yet the Bureau of Alcohol, Tobacco, and Firearms, and Explosives now claims that that not only is such a state law invalid, but “because the act conflicts with federal firearms laws and regulations, federal law supersedes the act.”

Tennessee’s law already has taken effect. The BATF’s letter on July 16 to firearms manufacturers and dealers in the state says “federal law requires a license to engage in the business of manufacturing firearms or ammunition, or to deal in firearms, even if the firearms or ammunition remain within the same state.”

A similar letter was sent to manufacturers and dealers in Montana, where the made-in-the-state law takes effect on October 1, 2009. Neither law permits certain large caliber weapons or machine guns, and both would bypass federal regulations including background checks for buyers and record-keeping requirements for sellers.

While this federalism-inspired revolt has coalesced around gun rights, the broader goal is to dust off a section of the Bill of Rights that most Americans probably have paid scant attention to: the Tenth Amendment. It says that “powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

Read literally, the Tenth Amendment seems to suggest that the federal government’s powers are limited only to what it has been “delegated,” and the U.S. Supreme Court in 1918 confirmed that the amendment “carefully reserved” some authority “to the states.” That view is echoed by statements made at the time the Constitution was adopted; New Hampshire explicitly said that states kept “all powers not expressly and particularly delegated” to the federal government.

Read moreObama Administration Takes Aim At Gun-Rights Revolt: ‘New Pro-Gun Laws In Montana And Tennessee Are Invalid’

Bailouts could cost US $23 trillion

Don’t you just love the background of Obama pictures?

obama-christ
The Messiah

“A series of bailouts, bank rescues and other economic lifelines could end up costing the TAXPAYER as much as $23 trillion, …”


obama_bailout
Barack Obama’s Treasury Department says less than $2 trillion has been spent so far on bailouts.
Photo: AP

A series of bailouts, bank rescues and other economic lifelines could end up costing the federal government as much as $23 trillion, the U.S. government’s watchdog over the effort says – a staggering amount that is nearly double the nation’s entire economic output for a year.

If the feds end up spending that amount, it could be more than the federal government has spent on any single effort in American history.

For the government to be on the hook for the total amount, worst-case scenarios would have to come to pass in a variety of federal programs, which is unlikely, says Neil Barofsky, the special inspector general for the government’s financial bailout programs, in testimony prepared for delivery to the House oversight committee Tuesday.

The Treasury Department says less than $2 trillion has been spent so far.

Still, the enormity of the IG’s projection underscores the size of the economic disaster that hit the nation over the past year and the unprecedented sums mobilized by the federal government under Presidents George W. Bush and Barack Obama to confront it.

In fact, $23 trillion is more than the total cost of all the wars the United States has ever fought, put together. World War II, for example, cost $4.1 trillion in 2008 dollars, according to the Congressional Research Service.

Read moreBailouts could cost US $23 trillion

California Lawmakers, Schwarzenegger Strike Deal Over $26 Billion Deficit

arnold-schwarzenegger
Arnold Schwarzenegger, governor of California, speaks at a news conference in Sacramento, California, July 1, 2009. Photographer: Ken James/Bloomberg News

July 21 (Bloomberg) — California lawmakers reached an agreement with Governor Arnold Schwarzenegger over how to close a $26 billion budget deficit that pushed the most-populous U.S. state to the brink of insolvency.

The deal, reached by legislative leaders after two months of frequently acrimonious negotiations, would slash spending for schools, public works and welfare programs amid the longest recession since the 1930s. If approved by the full Senate and Assembly, the agreement will also siphon money from municipalities, force companies and individuals to pay income taxes sooner and make it more difficult to receive state aid.

“We came to a basic agreement, a budget agreement,” Schwarzenegger told reporters outside his office last evening. “This is a budget that has no tax increases and this is a budget that is cutting spending and it deals with the entire $26 billion deficit.”

Read moreCalifornia Lawmakers, Schwarzenegger Strike Deal Over $26 Billion Deficit

UK Government delayed all reports till yesterday, the day before MPs go on holiday

… and of course the government delayed reports loaded with bad news. The UK is broke and gets ready to default on its debt.

Happy holidays!


Ministers bury £32bn tax crisis as recess starts

A mountain of bad news was buried by the Government as it rushed out reports and 26 ministerial statements the day before MPs go on holiday. Whitehall sources said that many of the reports were ready to be published weeks ago, and would normally be released in stages, but ministers had insisted they all be delayed till yesterday.

The dangerous state of the public finances was laid bare by the reports, which showed that the Government’s tax take plummeted by £32 billion last year. Figures from HM Revenue & Customs showed income tax, national insurance, VAT, stamp duty and corporation tax fell by £21 billion, while other debts and legal liabilities had cut income by a further £10 billion.

Related article: Flow of tax cash into Treasury drops by £32bn (Telegraph)

The figures were disclosed as the National Audit Office (NAO) refused to sign off six sets of Whitehall accounts because of fraud, error, overpayments and IT problems. The accounts, covering billions of pounds, included the Ministry of Defence, the Treasury, the Revenue, the Department for Work and Pensions, the Home Office and the Equalities and Human Rights Commission. The Government also slipped out reports criticising its training programmes and announced delays in several policy areas.

Philip Hammond, Shadow Chief Secretary to the Treasury, said: “It is a disgrace that the Government is apparently trying to sneak out these very important reports at the fag end of the parliamentary session. It gives no time for MPs to hold ministers to account — presumably what Mr Brown intended.”

Read moreUK Government delayed all reports till yesterday, the day before MPs go on holiday

Hillary Clinton at the Council on Foreign Relations: We get a lot of advice from the Council, so this will mean I won’t have as far to go to be told what we should be doing and how we should think about the future.

Ron Paul:
“Foreign policy is dictated by individuals who control both the Republican and the Democrat party”
(Ron Paul on Glenn Beck: Destruction of the dollar)


Foreign Policy Address at the Council on Foreign Relations

Hillary Rodham Clinton
Secretary of State
Washington, DC
July 15, 2009

“Thank you very much, Richard, and I am delighted to be here in these new headquarters. I have been often to, I guess, the mother ship in New York City, but it’s good to have an outpost of the Council right here down the street from the State Department. We get a lot of advice from the Council, so this will mean I won’t have as far to go to be told what we should be doing and how we should think about the future.”

Source: U.S. Department of State

White House delays release of budget update

Would you delay ‘GOOD NEWS’?



WASHINGTON — The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today’s bleak landscape.

The administration’s annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama’s budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.

The release of the update — usually scheduled for mid-July — has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.

The administration is pressing for votes before then on its $1 trillion health care initiative, which lawmakers are arguing over how to finance.

Read moreWhite House delays release of budget update

Hank Paulson admits to threatening Bank of America’s Ken Lewis

financial-terrorist-henry-paulson
Hank Paulson admitted to threatening Bank of America CEO Ken Lewis when Lewis threatened to pull the plug on the Merrill Lynch merger last fall.
Photo: AP

Former Treasury Secretary Henry Paulson made no bones about it: He did threaten Bank of America CEO Ken Lewis when Lewis threatened to pull the plug on the Merrill Lynch merger last fall.

“I further explained to him that, under such circumstances, the Federal Reserve could exercise its authority to remove management and the board of Bank of America,” Paulson told the House Oversight and Government Reform Committee on Thursday. “By referring to the Federal Reserve’s supervisory powers, I intended to deliver a strong message.”

That admission pretty much blew away the committee’s top Republican, Rep. Darrell Issa of California.

“The inappropriate behavior of government officials did not start or end with the threat to fire Ken Lewis and Bank of America’s board of directors,” Issa said. “It is a threat to the foundations of our free society when government officials, acting in the midst of a crisis, use dire predictions of imminent disaster to justify their encroachment on our individual liberty and the rule of law.”

Related articles:
Paulson Admits Pressuring Bank of America (ABC News)
Paulson admits bank merger threat (BBC News)

By MARTIN KADY II
7/17/09 4:21 AM EDT

Source: Politico

2000 Philadelphia Government Workers Fail to Pay Property Taxes

“About 100 city employees were a decade or more behind on their property-tax payments.”


An Inquirer analysis finds about 2,000 city workers are behind on their taxes at a time when every penny counts.

For 13 years, Democratic ward leader George Brooks’ wages have been paid by Philadelphia taxpayers. He’s now making $64,539 a year in a senior patronage position at the Register of Wills Office.

And yet, according to city records, Brooks has failed to pay his property taxes for more than two decades, racking up a $15,000 debt to the city.

“I’m working on that. I’m making arrangements,” Brooks said in a 20-second phone call that he quickly cut short.

An Inquirer analysis of Philadelphia tax and personnel records found about 2,000 city workers and employee spouses who were past due on their real estate bills, including about 1,000 who are more than two years behind.

Read more2000 Philadelphia Government Workers Fail to Pay Property Taxes

On the Edge with Max Keiser (07/17/09): ‘Obama is a bum’

1 of 4:

Read moreOn the Edge with Max Keiser (07/17/09): ‘Obama is a bum’

Paul Craig Roberts: What Economy? There’s Nothing Left to Recover

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.

paul-craig-roberts
Paul Craig Roberts

There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

The debt economy caused Americans to leverage their assets. They refinanced their homes and spent the equity. They maxed out numerous credit cards. They worked as many jobs as they could find. Debt expansion and multiple family incomes kept the economy going.

And now suddenly Americans can’t borrow in order to spend. They are over their heads in debt. Jobs are disappearing. America’s consumer economy, approximately 70% of GDP, is dead. Those Americans who still have jobs are saving against the prospect of job loss. Millions are homeless. Some have moved in with family and friends; others are living in tent cities.

Meanwhile the US government’s budget deficit has jumped from $455 billion in 2008 to $2,000 billion this year, with another $2,000 billion on the books for 2010. And President Obama has intensified America’s expensive war of aggression in Afghanistan and initiated a new war in Pakistan.

There is no way for these deficits to be financed except by printing money or by further collapse in stock markets that would drive people out of equity into bonds.

The US government’s budget is 50% in the red. That means half of every dollar the federal government spends must be borrowed or printed. Because of the worldwide debacle caused by Wall Street’s financial gangsterism, the world needs its own money and hasn’t $2 trillion annually to lend to Washington.

As dollars are printed, the growing supply adds to the pressure on the dollar’s role as reserve currency. Already America’s largest creditor, China, is admonishing Washington to protect China’s investment in US debt and lobbying for a new reserve currency to replace the dollar before it collapses. According to various reports, China is spending down its holdings of US dollars by acquiring gold and stocks of raw materials and energy.

The price of one ounce gold coins is $1,000 despite efforts of the US government to hold down the gold price. How high will this price jump when the rest of the world decides that the bankruptcy of “the world’s only superpower” is at hand?

Read morePaul Craig Roberts: What Economy? There’s Nothing Left to Recover

Amazon deletes George Orwell’s ‘1984’ and ‘Animal Farm’ from Kindle e-book readers

Some E-Books Are More Equal Than Others

1984
A screen shot from Amazon.com The MobileReference edition of the novel, “Nineteen Eighty-four,” by George Orwell that was deleted from Kindle e-book readers by Amazon.com.

EDITOR’S NOTE | 8:41 p.m. The Times published an article explaining that the Orwell books were unauthorized editions that Amazon removed from its Kindle store. However, Amazon said it would not automatically remove purchased copies of Kindle books if a similar situation arose in the future.

This morning, hundreds of Amazon Kindle owners awoke to discover that books by a certain famous author had mysteriously disappeared from their e-book readers. These were books that they had bought and paid for-thought they owned.

But no, apparently the publisher changed its mind about offering an electronic edition, and apparently Amazon, whose business lives and dies by publisher happiness, caved. It electronically deleted all books by this author from people’s Kindles and credited their accounts for the price.

This is ugly for all kinds of reasons. Amazon says that this sort of thing is “rare,” but that it can happen at all is unsettling; we’ve been taught to believe that e-books are, you know, just like books, only better. Already, we’ve learned that they’re not really like books, in that once we’re finished reading them, we can’t resell or even donate them. But now we learn that all sales may not even be final.

As one of my readers noted, it’s like Barnes & Noble sneaking into our homes in the middle of the night, taking some books that we’ve been reading off our nightstands, and leaving us a check on the coffee table.

You want to know the best part? The juicy, plump, dripping irony?

The author who was the victim of this Big Brotherish plot was none other than George Orwell. And the books were “1984” and “Animal Farm.”

Scary.

Read moreAmazon deletes George Orwell’s ‘1984’ and ‘Animal Farm’ from Kindle e-book readers

UK: NHS Instructed To Plan For Up To 65,000 Swine Flu Deaths

In a week that has seen the British swine flu death toll reach 29 and it is estimated that 55,000 people have caught the virus, hospitalizing 652 of them, the National Health Service (NHS) has received instructions to plan for the death toll reaching up to 65,000.

On Thursday, the UK’s Chief Medical Officer (CMO), Professor Sir Liam Donaldson, who is also the professional head of all medical staff in England, told the NHS to plan for between 19,000 and 65,000 swine flu deaths occuring this winter.

He stressed that the figures are not predictions but “worst case scenarios” to enable health authorities to plan. He explained that there haven’t been enough cases to produce proper estimates.

According to a report in the Telegraph yesterday, some GPs are seeing up to 60 cases of suspected swine flu a day, and leading doctors have suggested putting routine operations on hold in order to give priority to swine flu patients.

Read moreUK: NHS Instructed To Plan For Up To 65,000 Swine Flu Deaths

Baxter Filed Swine Flu Vaccine Patent a Year Ahead of Outbreak

big-pharma-you-can-believe-in
Baxter: Big Pharma you can believe in!

Barack Hugeprofit Opharma issues the ultimate bad news during his weekly Friday night bad news dump: Legal immunity set for swine flu vaccine makers 17 Jul 2009. The last time the government embarked on a major vaccine campaign against a new swine flu, thousands filed claims contending they suffered side effects [paralysis, death] from the shots. This time, the government has already taken steps to head that off. Vaccine makers and federal officials will be immune from lawsuits that result from any new swine flu vaccine, under a document signed by Secretary of Health and Human Services Kathleen Sebelius, government health officials said Friday. The document signed by Sebelius last month grants immunity to those making a swine flu vaccine, under the provisions of a 2006 law for public health emergencies.

Baxter Files Swine Flu Vaccine Patent a Year Ahead of Outbreak –US20090060950A1 to Baxter International filed 28th August 2008 By Lara 10 Jul 2009 Baxter Vaccine Patent Application US 2009/0060950 A1 –‘In particular preferred embodiments the composition or vaccine comprises more than one antigen…..such as influenza A and influenza B in particular selected from of one or more of the human H1N1, H2N2, H3N2, H5N1, H7N7, H1N2, H9N2, H7N2, H7N3, H10N7 subtypes, of the pig flu H1N1, H1N2, H3N1 and H3N2 subtypes, of the dog or horse flu H7N7, H3N8 subtypes or of the avian H5N1, H7N2, H1N7, H7N3, H13N6, H5N9, H11N6, H3N8, H9N2, H5N2, H4N8, H10N7, H2N2, H8N4, H14N5, H6N5, H12N5 subtypes.’

Baxter can take no more H1N1 flu vaccine orders 16 Jul 2009 While at least 50 governments have placed orders or are negotiating with drug companies for supplies of flu vaccine against the [their] fast spreading H1N1 strain, the lone U.S.-based maker has already taken on as much as it can handle. Baxter International Inc said on Thursday it has taken orders from five countries, including Britain, Ireland and New Zealand, for a total of 80 million doses of H1N1 vaccine and will not take any more.

Read moreBaxter Filed Swine Flu Vaccine Patent a Year Ahead of Outbreak

Big Pharma: Baxter, CSL Sued Over Accusations of Blood Monopoly

July 16 (Bloomberg) — CSL Ltd. and Baxter International Inc. were sued by a Missouri hospital over allegations they conspired to fix and raise prices for blood plasma products.

The companies used key words to encourage each other to increase supply only incrementally to keep pace with demand and not to increase supply to the extent the companies actually compete for market share, lawyers for Pemiscot Memorial Hospital, based in Hayti, Missouri, said in a complaint filed yesterday. The lawsuit was filed in Philadelphia federal court.

Related article: Baxter Filed Swine Flu Vaccine Patent a Year Ahead of Outbreak

“As a result of the conspiracy, prices for blood plasma products were higher than they otherwise would have been,” Marc Machiz, an attorney for Pemiscot, said in the complaint. “Beginning in 2005 and continuing through the present, prices for blood plasma proteins have increased substantially.”

Baxter and Melbourne-based CSL are the world’s largest makers of blood plasma products. Last month CSL abandoned a $3.1 billion bid for Talecris Biotherapeutics Holdings Corp. after regulators blocked the plan.

Read moreBig Pharma: Baxter, CSL Sued Over Accusations of Blood Monopoly