Economy – Page 1049 – Infinite Unknown

Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds

July 13, 2008 by Infinite

$376 Billion in Chinese Agency Bond Holdings Subject to Taxpayer Bailout Proposals According to FreedomWorks Analysts

WASHINGTON, Jul 11, 2008 (BUSINESS WIRE) — As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.S. tax dollars to sophisticated investors and governments overseas.

The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury’s most recent “Report on Foreign Portfolio Holdings of U.S. Securities.”

FreedomWorks President Matt Kibbe commented, “The prospectus for every GSE bond clearly states that it is not backed by the United States government. That’s why investors holding agency bonds already receive a significant risk premium over Treasuries.”

“A bailout at this stage would be the worst possible outcome for American taxpayers and mortgage holders, who have been paying a risk premium to these foreign investors. It would change the rules of the game retroactively and would directly subsidize the risks taken by sophisticated foreign investors.”

“A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics.”

SOURCE: FreedomWorks
Last update: 11:08 a.m. EDT July 11, 2008

Source: Market Watch

Run on banks spells big trouble for US Treasury

July 13, 2008 by Infinite

IN A modern financial system nothing is more frightening than a run on the bank. The US has now suffered a series of them, and they are escalating in size and scope, posing a serious threat to an already reeling economy.

Rumours swamped financial markets on Friday that the US Government would be forced to step in to aid the mortgage finance giants Fannie Mae and Freddie Mac, which together own or guarantee $US5 trillion ($5.16 trillion) in US home loans.

In Wall Street’s version of a run on the bank, investors drove Fannie Mae and Freddie Mac shares to 17-year lows, signalling a gnawing lack of faith in the companies’ ability to survive rising mortgage defaults without the Government’s help.

Later on Friday regulators took over IndyMac Bank of Pasadena, saying the $US32 billion lender had collapsed under the weight of bad home loans and withdrawals by spooked depositors. It was the second-largest bank to fail in US history.

Friday’s events were felt around the world, knocking the battered US dollar lower and driving up interest rates.

“This is a flare-up in the financial forest fire that is far beyond anything we’ve seen before,” said Christopher Low, chief economist at the investment firm FTN Financial in New York.

It is triggering worries that would have been unthinkable even a year ago, including that the US Treasury’s debt might lose its AAA credit grade because of heavy blows to the nation’s fiscal health from the housing mess.

Four months ago many on Wall Street believed they had seen the worst of the credit crisis rooted in the housing market’s woes. The collapse in March of the brokerage Bear Stearns, a central player in the business of packaging dicey mortgages for sale to investors, was the kind of prominent calamity that has historically marked the end of financial crises.

The Dollar is doomed and the Fed will fail

July 13, 2008 by Infinite

In this very recent interview with Bloomberg Jim Rogers says Asia is the future, the dollar is a terribly flawed currency and he doesn’t want to own any, oil will certainly pass $200/barrel soon, and the (privately owned) Federal Reserve will disappear within the next decade.

Added: 09 July 2008

Source: YouTube

Worsening Drought Threatens Australia’s “Food Bowl”

July 13, 2008July 13, 2008 by Infinite

An agricultural region that produces over 40 percent of Australia‘s fruit, vegetables, and grain is seriously threatened by the country’s ongoing drought, which has been developing into a crisis over the last decade. Scientists say that the two mighty rivers that irrigate the Murray-Darling Basin (an area the size of France and Germany combined) received the lowest amount of replenishing autumn rain since record-keeping began over a century ago.

Neil Plummer, acting head of the National Climate Centre, described rainfall during the southern hemisphere autumn as “an absolute shocker”, and said: “I’m gasping for good news”. Wendy Craik, chief executive of the Murray-Darling Basin Commission, said the river system’s condition was “critical… tending towards flatlining”. She added: “We have got it on life support” [The Independent].

The degrading ecosystem may cause strife between farmers and environmentalists, as the government has said it might be forced to compulsorily acquire water from irrigators, a move that would anger and devastate farm families [The Daily Telegraph]. Conservationists say the mandatory water buy-backs are necessary to protect the wetland habitat of native birds, turtles and fish.

David Icke – Big Brother, the Big Picture (July 6th 2008)

July 12, 2008 by Infinite

David Icke speaks to the constituents of Haltemprice and Howden about the ‘Big Brother’ election, forced by the resignation of David Davis, and the move towards the global Big Brother enslavement we are all facing. (Official Full Version)

Related articles:
– CASPIAN RELEASES MICROCHIP CANCER REPORT
– Met Police officers to be ‘microchipped’ by top brass in Big Brother style tracking scheme
Every single Metropolitan police officer will be ‘microchipped’….
…there will not be any choice about wearing one.
– UK: Compulsory microchipping of dogs
– U.S. School District to Begin Microchipping Students
So far the RFID chips are only implanted in the schoolbag to monitor the students movements.
– The Microchip is here !!! – New World Order
– The Microchip: Health, Privacy, Civil Rights And Freedom Under Siege
U.K. to Begin Microchipping Prisoners

This video contains a lot of very important information.
I disagree with David Icke on his view of the ancient civilizations.
The elite is abusing the knowledge of these ancient civilizations.
The elite is abusing the universal powerful symbols, that our subconscious mind understands directly, because it is the universal language.
These ancient civilizations have fallen into darkness several thousand years ago and so has their knowledge.
– The Infinite Unknown

Source: Google Video

Bankers Use Secret Clinics, Nurses to Beat Breakdowns

July 12, 2008 by Infinite

July 11 (Bloomberg) — On a private island 20 minutes by helicopter from central London, a hovercraft sits on the lawn of a turreted Edwardian manor house as swallows swoop around.

Trees and wildflowers line a lane that leads to a cluster of buildings that house a pool table, a 12-seat movie theater and an art studio. A yacht is moored nearby.

The island isn’t a country hideaway. It’s the Causeway Retreat, a mental health and addiction center that charges as much as 10,000 pounds ($20,000) a week for treatment away from the prying eyes of colleagues and the media. There is a waiting list for the facility’s 15 rooms.

“We get lots of CEOs of companies, traders, high-end business guys,” says Managing Director Brendan Quinn. “They want treatment, but they want it to be discreet.”

China to urgently boost GM crop development

July 12, 2008 by Infinite

China has said it must urgently step up the development of genetically modified crops as it faces mounting challenges to feed its 1.3 billion people due to shrinking arable land and climate change.

Newly-approved plans aim to cultivate high-yielding and pest-resistant genetically modified species, the State Council, or cabinet, said in a statement posted on its website late Wednesday

At a meeting chaired by Premier Wen Jiabao, Chinese leaders said the plans were “of strategic significance” in the country’s drive to make its agricultural sector more efficient and competitive internationally, the statement said.

“Departments must fully understand the importance and urgency of this significant project, further improve the programme and waste no time to carry it out,” it said.

It gave no details on which crops should be developed, but analysts said the plans were likely to focus on developing genetically modified organisms, or GMOs, including corn and rice.

China has become a major producer of genetically modified cotton and vegetables such as peppers and tomatoes, but it has yet to begin large-scale production of genetically modified rice, corn and soybeans.

Weak dollar sends Vatican into the red

July 12, 2008 by Infinite

The Vatican has blamed a weak dollar for pushing it into its first loss in four years by undermining the value of dollar-denominated donations by the faithful.

Annual accounts published this week show the Holy See fell into the red last year, recording a loss of €9.1m (£7.25m).

The US currency has fallen sharply against the euro since the start of last year, hitting the Holy See in the pocket as its expenses are incurred in euros. Much of the Vatican’s income comes from donations by Catholics around the world. The US was the largest single contributor to Peter’s Pence – the collection used by the Pope for charitable donations – sending almost $19m (£9.5m).

But the shortfall attributed mainly to the weak dollar was mitigated by a rise of €4m in property income. The Holy See is a major owner of property all over Rome and was criticised last year for raising rents and threatening to evict tenants.

Earlier this year, the Vatican released a new list of mortal sins which included “accumulating excessive wealth”. (Then the Catholic Church will go to hell for sure. Maybe the Holy See needs a divine bailout one day. – The Infinite Unknown)

Bank Failure: IndyMac Bank seized by federal regulators

July 12, 2008 by Infinite

The Pasadena-based thrift’s failure is the second-biggest by a U.S. bank. Doors will reopen Monday.

The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.

Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.

The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services are to resume Monday.

Federal authorities estimated that the takeover of IndyMac, which had $32 billion in assets, would cost the FDIC $4 billion to $8 billion. Regulators said deposits of up to $100,000 were safe and insured by the FDIC. The agency’s insurance fund has assets of about $52 billion.

IndyMac’s failure had been widely expected in recent days. As the bank was shuttering offices and laying off employees to cope with huge losses from defaulted mortgages made at the height of the housing boom, nervous depositors were pulling out $100 million a day. The bank’s stock price had plummeted to less than $1 as analysts predicted the company’s imminent demise.

The takeover of IndyMac came amid rampant speculation that the federal government would also have to take over lenders Fannie Mae and Freddie Mac, which together stand behind almost half of the nation’s mortgage debt.

Shares of the two mortgage giants have nose-dived this week and fell again Friday, helping to drag down the Dow Jones industrial average 128.48 points, or 1.1%, to close at 11,100.54. Investors and analysts are concerned that the two government-chartered companies need to raise billions of dollars to offset expected losses stemming from mortgage defaults, but will be unable to do so in the private market. Officials in Washington spent most of Friday trying to knock down rumors of a government bailout.

Gold Heads for Fourth Weekly Gain, Dollar Weakens, Oil Hits Record

July 11, 2008 by Infinite

July 11 (Bloomberg) — Gold headed for its fourth weekly gain in London, as a weaker dollar and record energy prices spurred investors to buy the metal as a haven from inflation.

Gold often moves in line with the euro, with bullion gaining 15 percent this year and the euro advancing about 8 percent. The dollar is heading for a weekly loss against the euro on speculation a report today will show U.S. consumer confidence dropped to a 28-year low, signaling the Federal Reserve will refrain from raising interest rates this year.

“Given the mixture of worsening economic signals from the U.S. and western Europe, rising inflationary pressures and renewed geo-political tensions, we retain our bullish outlook,” said James Moore, an analyst at TheBullionDesk.com in London, in a report today.

Gold for immediate delivery rose $17.54, or 1.9 percent, to $965.20 an ounce by 2:32 p.m. in London. The metal is heading for a 3.4 percent gain on the week. Futures for August delivery climbed $23.80, or 2.5 percent, to $965.80 on the Comex division of the New York Mercantile Exchange.

Crude oil rallied to a record of $147.27 a barrel on concern Israel may be preparing to attack Iran, while a workers’ strike in Brazil and renewed militant activity in Nigeria is threatening to cut supplies.

Whistleblower says Pentagon putting KBR over soldiers

July 11, 2008 by Infinite

‘Irregular’ oversight of KBR work alleged

Ex-Army official faults Pentagon on contract in Iraq and Afghanistan

WASHINGTON – The Pentagon’s oversight of Houston-based KBR’s work in Iraq and Afghanistan has been “irregular and highly out of the ordinary,” a former Army contracting official told Senate Democrats Wednesday.

Charles Smith, the former chief of the Army Field Support Command with responsibility for overseeing KBR’s massive contract with the Army, contends he was forced out of his job in 2004 for objecting to the Pentagon’s treatment of KBR.

“The interest of a corporation, KBR, not the interests of American soldiers or American taxpayers, seemed to be paramount,” Smith told the Democratic Policy Committee, a Democrats-only panel.

Bank of Israel Will Purchase $ 100 Million a Day

July 10, 2008July 10, 2008 by Infinite

(IsraelNN.com) The Bank of Israel put the brakes on the shekel’s upward climb, and announced it would purchase $100 million a day. The shekel reacted with a sharp plunge against the dollar.

With the dollar dropping on Wednesday to a 12-year-low rate of 3.23 shekels, Bank of Israel and its chief, Stanley Fischer, announced an unprecedented plan to begin purchasing dollars at the rate of 100 million per day. The bank had been buying a quarter of this amount, 25 million of the greenbacks, each business day for over three months, when the dollar was in the midst of its plunge from 3.85 shekels at the beginning of the year.

“We are increasing our daily purchases,” a senior Bank of Israel official said, “and we will test how this will affect the exchange rate.”

(To the elite all of this is a game of chess. – The Infinite Unknown)

Fannie, Freddie insolvent, Poole tells Bloomberg

July 10, 2008 by Infinite

(Reuters) – Mortgage lenders Fannie Mae and Freddie Mac are “insolvent” and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.

“Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,” Poole was quoted as saying in an interview held on Wednesday.

Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.

Shares of the two companies have taken a beating recently on worries about whether they can withstand more losses and support housing as well as concerns that they may need to raise massive amounts of new capital.

Freddie Mac shares tumbled 23.8 percent to $10.26 on the New York Stock Exchange on Wednesday, while Fannie Mae shares sank 13.1 percent to $15.31.

Foreclosures Rose 53% in June, Bank Seizures Triple

July 10, 2008 by Infinite

July 10 (Bloomberg) — U.S. foreclosure filings rose 53 percent in June from a year earlier and bank repossessions increased the most since RealtyTrac Inc. began collecting data in January 2005 as deteriorating property values forced more people to give up their homes.

One in every 501 U.S. households either lost the home to foreclosure, received a default notice or was warned of a pending auction, RealtyTrac, an Irvine, California-based seller of default data, said today in a statement. Bank seizures rose 171 percent.

“The foreclosure problem is getting worse and will stay with us well into the next decade,” Mark Zandi, chief economist for Moody’s Economy.com in West Chester, Pennsylvania, said in an interview. “The job market is eroding and homeowners have less equity. Lenders are much less willing to work with you if you’ve got negative equity, and you’re more likely to give up your house if you’re deeply underwater.”

Foreclosure activity is the highest since the Great Depression of the 1930s, said Rick Sharga, RealtyTrac’s vice president of marketing. Home prices, which fell the most on record in April, according to the S&P/Case-Shiller index of 20 U.S. metropolitan areas, have created a cycle where shrinking equity drives homeowners into foreclosure, which in turn further pushes down home prices, Sharga said.

`Faster Pace’

S&P 500 plunges into a bear market

July 10, 2008 by Infinite

NEW YORK (Reuters) – Stocks tumbled on Wednesday, dragging the S&P 500 into a bear market, as worries about more credit losses hurt financial companies and Cisco Systems led technology shares lower after its CEO raised fears of an extended economic downturn.

The S&P closed 20 percent below its all-time high set in October, making it the last of the three major U.S. stock indexes to fall into a bear market. Stocks have been roiled for months by the credit crisis and a severe U.S. economic slowdown.

In the latest news to scare the market, Cisco’s (CSCO.O: Quote, Profile, Research, Stock Buzz) John Chambers told Reuters that customers of the company, which makes Internet infrastructure, see the economy picking up early in 2009 rather than later this year. At least two brokerages also cut their price targets on the stock.

Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) dropped sharply as some investors worried that the two pillars of the U.S. housing market will need to raise billions of dollars in additional capital through stock sales, diluting the holdings of current investors.

Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) shares fell more than 9 percent, after Fitch Ratings said it may cut the U.S. investment bank’s debt rating, given expected ongoing write-downs and diminished prospects for earnings.

NIGERIA: Trafficking of girls, abuse worsening

July 9, 2008 by Infinite

Children in Makoko, a slum of houses on stilts in central Lagos, Nigeria. Some 15,000 people live here in the most basic conditions imaginable

KANO, 7 July 2008 (IRIN) – The trafficking of girls from villages to cities in Nigeria is increasing and the state is powerless to stop the trade, officials told IRIN.

“The business of recruiting teenage girls as domestic help in rich and middle-class homes is booming despite our efforts to put a stop to it”, Bello Ahmed, head of the Kano office of the National Agency for the Prohibition of Traffic in Persons (NAPTIP), told IRIN.

Girls aged 12-17 are regularly trafficked from villages and brought to the city to work as maids for an average monthly wage of 1,500 naira (US$13) which they usually send back to their parents who are caring for several of their siblings, according to Ahmed.

“Apart from being denied access to education, these girls are in many cases raped and beaten by their employers and this is why we keep a dormitory to rehabilitate them”, Ahmed said.

“Bringing in girls from the villages to the city to work as house helps continues unabated. In fact it is on the rise”, agreed Mairo Bello, head of Adolescent Health Information Project, a Kano-based non-governmental organisation (NGO).

As well as poverty, trafficking in girls and women is driven by the extreme income inequality which exists in Nigeria, and gender inequality. The problem is prevalent all around the country.

The dangers

Saudatu Halilu, a 16 year-old girl who moved to Kano from a rural village to work as a maid, has been a victim of the trade’s dangers.

Saudatu was brought to Kano from Nassarawa State in central Nigeria 10 months ago to work as a domestic help, but she said her master forced her into sleeping with him and threatened to kill her if she told anyone.

“I was too scared to tell my mistress or anyone what happened for fear of what my master would do to me and I did not realise I was pregnant until a medical check after I began to show some signs which attracted the attention of my mistress”, Halilu told AFP.

Ruth, 13, doing her homework. From the age of five to nine she was denied the right to go to school and had to work selling water at a market in Gabon, after having been trafficked from Nigeria

Poverty

Pension plans suffer huge losses

July 8, 2008July 8, 2008 by Infinite

Report says weak markets, credit crunch have drained $280 billion from plans of largest U.S. companies

NEW YORK (CNNMoney.com) — Falling stock markets around the globe and the credit crunch are putting the pension funds of some of the largest U.S. companies into deeper financial holes, according to a report released Monday.

Since the credit crunch hit last fall, pension plans funded by S&P 1500 companies have lost about $280 billion in assets, according to an actuary at Mercer, a human resources consulting firm.

On paper, the losses from last October tally $160 billion. However, according to Mercer actuary Adrian Hartshorn, the asset losses are closer to $280 billion when pension plan assets and liabilities are considered together. The losses amount to about 7% of a total $4 trillion in pension plan assets.

Companies should be concerned, he said, because – assuming no change in the market – a typical U.S. company can expect their pension expenses to increase between 20% and 30% in 2009. That’s due to the higher cost of servicing the pension plan’s debt and the smaller return from the plan’s assets.

“I think it’s important for corporations to be aware of what’s going on in their pension plans, as corporations would be concerned when any part of its business is performing badly,” Hartshorn said.

According to the report, the total losses on pension assets and liabilities from the last day of 2007 through the end of June has grown to more than $80 billion.

Part of the loss has been reflected in companies’ current financial statements, but many losses incurred since the end of 2007 have yet to hit company balance sheets.

Fannie, Freddie Shares Plummet on Capital Worries

July 8, 2008 by Infinite

Shares of Fannie Mae and Freddie Mac, the largest providers of funding for U.S. home mortgages, closed at their lowest levels since 1992 on concern the companies need to raise more capital amid larger-than-expected losses.

Corporate “federal agency” debt obligations and mortgage-backed securities guaranteed by the companies also plummeted relative to government debt as investors thinned positions, analysts said.

Freddie Mac

FREDDIE MACFRE
11.91 -2.59 -17.86% NYSE

Quote | Chart | News | Profile

[FRE 11.91 -2.59 (-17.86%) ] stock tumbled almost 18 percent Monday, to $11.91, while Fannie Mae

FANNIE MAEFNM
15.74 -3.04 -16.19% NYSE

Quote | Chart | News | Profile

[FNM 15.74 -3.04 (-16.19%) ] shares dropped most than 16 percent, to $15.74.

A pending accounting change could also force Freddie Mac and Fannie Mae to raise capital at a difficult time, according to Lehman Brothers.

The rule aimed at forcing companies to account for securitized assets on their balance sheets could mandate Freddie Mac and Fannie Mae to boost capital by $29 billion and $46 billion, respectively, the analysts wrote in a client note on Monday.

World Bank: Biofuels behind rising food prices

July 7, 2008 by Infinite

LONDON (AFP) – Biofuels have caused world food prices to increase by 75 percent, according to the findings of an unpublished World Bank report published in The Guardian newspaper on Friday.

The daily said the report was finished in April but was not published to avoid embarrassing the US government, which has claimed plant-derived fuels have pushed up prices by only three percent.

Biofuels, which supporters claim are a “greener” alternative to using fossil fuel and cut greenhouse gas emissions, and rising food prices will be on the agenda when G8 leaders meet in Japan next week for their annual summit.

The report’s author, a senior World Bank economist, assessed that contrary to claims by US President George W. Bush, increased demand from India and China has not been the cause of rising food prices.

“Rapid income growth in developing countries has not led to large increases in global grain consumption and was not a major factor responsible for the large price increases,” the report said.

Droughts in Australia have also not had a significant impact, it added. Instead, European and US drives for greater use of biofuels has had the biggest effect.

The European Union has mooted using biofuels for up to 10 percent of all transport fuels by 2020 as part of an increase in use of renewable energy.

Free Internet will be censored by 2010 in Canada

July 7, 2008 by Infinite

Concerns grow that Canada’s plan will wipeout alt news sites and spread to U.S.

A net-neutrality activist group has uncovered plans for the demise of the free Internet by 2010 in Canada. By 2012, the group says, the trend will be global.

Bell Canada and TELUS, Canada’s two largest Internet service providers (ISPs), will begin charging per-site fees on most Internet sites, reports anonymous sources within TELUS.

“It’s beyond censorship, it is killing the biggest ecosystem of free expression and freedom of speech that has ever existed,” I Power spokesperson Reese Leysen said. I Power was the first group to report on the possible changes.

Small Banks: Billions in Troubled Construction Loans

July 7, 2008 by Infinite

Wall Street is bracing for regional and small banks to fess up to large losses from their mounting volume of soured construction loans made primarily to home builders.

According to the Federal Deposit Insurance Corp., $45.4 billion of the $631.8 billion in construction loans outstanding at the end of the first quarter were delinquent. When banks announce second-quarter results in coming weeks, they are expected to report sharp increases in loans that builders can’t repay. Banks are also facing intensifying pressure from federal and state regulators to deal with the problem loans on their books.

WHICH BANKS WILL FEEL THE PAIN?
See a sortable list of small and regional banks with sizable exposure to construction and land loans and with notable delinquency rates.

That will put additional pressure on an already stressed financial system. Banks have begun to dump bad construction and land loans at discounts, curtail new lending and halt construction projects that are under way to preserve capital. Some analysts even see a wave of bank failures as a possibility.

Financial market losses could top 1,600 billion dollars: report

July 7, 2008 by Infinite

Geneva – The global financial crisis could lead to losses of 1,600 billion dollars for financial institutes, according a report in the Swiss Sunday newspaper SonntagsZeitung. It quoted a confidential study by the hedge fund Bridgewater Associates as saying losses for banks holding risky assets could be four times greater than the 400 billion dollars previously estimated.

The hedge fund expressed doubts that the financial institutes would be able to drum up enough funds to cover the losses, something it said could exacerbate the crisis. Bridgewater, one of the world’s biggest hedge funds, based its calculations on the state of risky debt-based US assets, such as mortgages, credit and credit card demands. The value of such risky assets is 26,600 billion dollars, according to the hedge fund. The losses would amount to 1,600 billion dollars if these assets were valued at market rates and not in the form of securitization, the newspaper said.

Sun, 06 Jul 2008
DPA

Source: The Earth Times

US: Total Crash of the Entire Financial System Expected, Say Experts

July 4, 2008 by Infinite

Investors are fleeing from the U.S. stock market, Sending the Dow to Worst June Since Depression, looking for places to secure their wealth.

There is an unprecedented cash flow of ‘hot money’, which is usually defined as short-term global speculative funds moving among financial markets in search of the highest short-term return, moving into China:
Is China flooded with ‘hot money’ because of an expected meltdown in the U.S.?

Let’s further examine the prospects that we would experience a total crash of the entire financial system:

– Fortis Bank Predicts US Financial Market Meltdown Within Weeks

We have seen the Dow suffering it’s worst 1st half since ‘70 accompanied by a lot of bad news for the economy like:
– US: Big Trouble for General Motors, Crysler and Ford
– America’s Aviation System About To Collapse
– Starbucks to cut as many as 12,000 positions
And now the corporations are cheating you at the supermarkets: America’s Shrinking Groceries

The Dollar is being destroyed by the Federal Reserve, which has created in the last three years 4 Trillion Dollars of new money out of thin air: Ron Paul on Iran and Energy June 26, 2008

Ron Paul is further warning that: This coming crisis is bigger than the world has ever experienced
and that: We are at the beginning of a huge Dollar bubble.

The US Federal Reserve intentionally created inflation and that is why its credibility has fallen “below zero” and that is why Barclays warns of a financial storm as Federal Reserve’s credibility crumbles.

More dire warnings:
– RBS issues global stock and credit crash alert
– Morgan Stanley warns of ‘catastrophic event’ as ECB fights Federal Reserve
– Central bank body warns of Great Depression
– Credit crisis expands, hitting all kinds of consumer loans
– How Low Can The Dollar Go? Zero Value

Investors like Jim Rogers are telling us to “Avoid The Dollar At All Costs” and have told us that the Federal Reserve will fail and that Bernanke should be fired (alhough that isn’t possible because of his contract), because he has created the worst recession in the end and thats why he said: “Abolish the FED” on CNBC 2008.03.12.

The Fed is only doing good for the big corporations on Wall Street. If you would continuously come close to bankruptcy, because you have irresponsibly wasted your money, who will continuously give you billions of Dollars and bail you out, because you might fail? So I agree totally with Marc Faber: ‘Misleading’ Fed Should Let Banks Fail.

Well those corporations are said to be to “Big to Fail”, but they eventually will fail, because the entire system will fail and the Dollar is being destroyed in the process and so the people will end up with nothing, because their life savings are worthless paper. You are already paying the price for this policy, but maybe you haven’t looked at it that way:
The Price Of Food: 2007 – 2008
What inflation really is, is a taxation on monetary assets. And guess who is paying for all of that?

I just love this video. A must see:
The Stock Market and the Monetary System are on the verge of collapse!

Is China flooded with ‘hot money’ because of an expected meltdown in the U.S.?

July 4, 2008 by Infinite

BEIJING, July 1 (Xinhua) — China has taken a series of increasingly aggressive measures in the past several months to blunt the impact of so-called “hot money,” amid the explosive growth of its foreign exchange reserves, which have soared beyond what can be explained by trade and investment flows.

The inflows have been so massive as to raise alarms over the country’s financial security.

According to the State Administration of Foreign Exchange (SAFE), as of the end of May, forex reserves stood at 1.797 trillion U.S. dollars.

During the first five months of 2008, forex reserves increased by 18.7 percent year-on-year, or 268.7 billion U.S. dollars, SAFE figures showed.

Where is all that money coming from, and where is it going?

HOW MUCH IS “HOT MONEY”?

What caught the attention of analysts was that forex reserves jumped at the same time as the current-account surplus and foreign direct investment (FDI) into the fixed-asset field declined year-on-year.

Set against the increased forex reserves in the first five months of this year, there was the 78.02 billion U.S. dollars represented by the trade surplus, which was down 8.6 percent year-on-year.

Another 42.78 billion U.S. dollars was connected with FDI in the first five months, which soared nearly 55 percent year-on-year. But FDI going into fixed assets (longer-term investment), actually fell 3.5 percent in the same period.

Jiang Zheng, a macro-economist at a Beijing-based securities firm, has closely tracked these figures and analyzed the data.

Deducting the trade surplus and the FDI, there was an unexplained 147.9 billion U.S. dollars in the forex reserve increase figure, which Jiang and numerous other analysts consider to be “hot money”, which is usually defined as short-term global speculative funds moving among financial markets in search of the highest short-term return.

The government doesn’t release official figures on this category of funds; in fact, it doesn’t even use the term “hot money”. So analysts can only make estimates.

Jiang said the “hot money” figures deduced by analysts might even be underestimates. “There is a tricky decline among the FDI figures, i.e. the drop of fixed-asset investment,” he explained.

“Foreign direct investment in the first five months soared about 55 percent. But strangely, fixed-asset FDI in the first five months fell 3.5 percent from last year’s figure,” Jiang said.

Jiang said it appeared that some speculative money had managed to move into China in the guise of FDI.

But there are many other channels for “hot money” to flow into China. These include falsified international trade with over-invoiced exports and underground private banks, according to Jiang.

Jiang and other analysts maintained that as much as 600 billion U.S. dollars in “hot money” had surged into the country, most of it after 2005.

Youtube to hand over all user histories and IP addresses!

July 3, 2008 by Infinite

Google will have to turn over every record of every video watched by YouTube users, including users’ names and IP addresses, to Viacom, which is suing Google for allowing clips of its copyright videos to appear on YouTube, a judge ruled Wednesday.

Viacom wants the data to prove that infringing material is more popular than user-created videos, which could be used to increase Google’s liability if it is found guilty of contributory infringement.

Viacom filed suit against Google in March 2007, seeking more than $1 billion in damages for allowing users to upload clips of Viacom’s copyright material. Google argues that the law provides a safe harbor for online services so long as they comply with copyright takedown requests.

Although Google argued that turning over the data would invade its users’ privacy, the judge’s ruling (.pdf) described that argument as “speculative” and ordered Google to turn over the logs on a set of four tera-byte hard drives.

The judge also turned Google’s own defense of its data retention policies — that IP addresses of computers aren’t personally revealing in and of themselves, against it to justify the log dump.

The Electronic Frontier Foundation has already reacted, calling the order a violation of the Video Privacy Protection act that “threatens to expose deeply private information.”

The order also requires Google to turn over copies of all videos that it has taken down for any reason.

Viacom also requested YouTube’s source code, the code for identifying repeat copyright infringement uploads, copies of all videos marked private, and Google’s advertising database schema.

Those requests were denied in whole, except that Google will have to turn over data about how often each private video has been watched and by how many persons.