People should work until they are incapacitated

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Britain’s workforce should keep working until they are no longer physically able to do so, according to former cabinet minister David Blunkett.


In a speech to the Counsel and Care charity in London, he said people should stop assuming that the Government had “prime responsibility” for supporting them through “the ever increasing years of retirement”.

The former Work and Pensions Secretary said people should be prepared to use equity release schemes to pay for their care in retirement, rather than protecting the value of their inheritances to their families.

Read morePeople should work until they are incapacitated

U.S. Rescue Seen at Hand for 2 Mortgage Giants

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Henry M. Paulson Jr., the Treasury secretary, and Ben S. Bernanke, the Federal Reserve chairman

WASHINGTON – Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said.

Read moreU.S. Rescue Seen at Hand for 2 Mortgage Giants

U.S. House Price Decline Could Be Worse than Great Depression, Economist Shiller Says

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Eight years ago, Yale superstar professor and MacroMarkets chief economist Robert Shiller famously called the top of the stock market in his book Irrational Exuberance. Then, a year before the housing bubble peaked, he predicted the colossal bust we are now experiencing.

If you recognize Shiller’s name, it’s because the Standard & Poor’s/Case-Shiller home price indexes, which he developed with Wellesley College economist Karl Case, have become the nation’s most authoritative source for home price trends.

In part one of my one-on-one with Shiller, we discuss the grim outlook for U.S. housing, which he tackles in-depth in his new book The Subprime Solution. Highlights of our first discussion include:

  • Home price declines are already approaching those in the Great Depression, when they plunged 30% during the 1930s. With prices already down almost 20%, it’s not a stretch to think we might exceed that drop this time around.
  • There are about 10 million homeowners whose debt is higher than their home value, which has broad implications for how Americans feel about their wealth and spending habits (read: more pressure on consumer spending).
  • The current hopeful consensus — that house prices will bottom soon and then begin to recover — is most likely a dream. Housing markets don’t usually have “V-shaped” recoveries. And even if house prices stabilize in nominal terms, after adjusting for inflation, most homeowners will continue to lose money.

    Read moreU.S. House Price Decline Could Be Worse than Great Depression, Economist Shiller Says

Bush Extends 9/11 National Emergency Yet Again

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Though few Americans realize it, Cheney and Rumsfeld worked through the 1980s and 1990s on emergency nuclear-response plans which allegedly suspended the American constitution and also Congress.[1] (Through these decades Rumsfeld was CEO of a major pharmaceutical firm, and in the later 1990s Cheney was CEO of Halliburton; but their private status did not deter them from continuing to exercise a supra-constitutional planning power conferred on them by Ronald Reagan.)

Even fewer Americans know that these rules, originally dealing with a nuclear attack on America, were extended by Reagan Executive Order 12656 to cover “any occurrence, including natural disaster, military attack, technological emergency, or other emergency, that seriously degrades or seriously threatens the national security of the United States.”[2] And few Americans realize that at least some of these rules, known technically as Continuity of Government or COG rules, were invoked before 10:00 AM on September 11, 2001.[3]

As he did in 2007, President Bush has again, on August 28, 2008, continued for another year the national emergency first officially proclaimed on September 14, 2001, along with “the powers and authorities adopted to deal with that emergency:”

Notice: Continuation of the National Emergency with Respect to Certain Terrorist Attacks

Consistent with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency I declared on September 14, 2001, in Proclamation 7463, with respect to the terrorist attacks at the World Trade Center, New York, New York, the Pentagon, and aboard United Airlines flight 93, and the continuing and immediate threat of further attacks on the United States.

Because the terrorist threat continues, the national emergency declared on September 14, 2001, and the powers and authorities adopted to deal with that emergency, must continue in effect beyond September 14, 2008. Therefore, I am continuing in effect for an additional year the national emergency I declared on September 14, 2001, with respect to the terrorist threat.

This notice shall be published in the Federal Register and transmitted to the Congress.

GEORGE W. BUSH

THE WHITE HOUSE,

August 28, 2008.[4]

Read moreBush Extends 9/11 National Emergency Yet Again

Merrill Lynch Cut to `Sell’ at Goldman on Writedowns

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Sept. 5 (Bloomberg) — Merrill Lynch & Co., down 50 percent in New York trading this year, was cut to “sell” at Goldman Sachs Group Inc. on concern the firm may post more writedowns tied to credit-related investments.

Goldman added the third-biggest U.S. securities company to its “conviction sell” list, according to a report by analysts including William Tanona. The share-price estimate on the stock was lowered 23 percent to $22, compared with yesterday’s closing price of $26.21.

Merrill, battered by more than $40 billion of credit market writedowns, has sold mortgage-linked assets to reduce risk and free up capital. The company trades at 1.25 times book value, compared with 0.95 for Citigroup Inc., the only firm that’s reported larger writedowns and losses stemming from the credit market crunch, according to data compiled by Bloomberg.

Read moreMerrill Lynch Cut to `Sell’ at Goldman on Writedowns

Gold demand soars. Price falls. What’s going wrong?

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Physical demand for gold is surging but the price keeps taking serious knocks. What’s happening.

LONDON – Gold market manipulation conspiracy theorists should be having a field day.  The past few weeks have seen solid evidence that physical gold demand from individuals is soaring. We have seen the U.S. Mint having to suspend one ounce Gold Eagle coin sales because of what it terms ‘unprecedented demand’, Indian gold sales have picked up enormously in the past few weeks leading to purchasers having to wait several days for deliveries as the traditional sellers are short of gold, while yesterday we hear that Abu Dhabi, a major trading centre for precious metals, has seen gold sales rise by 300 percent in volume and 250 percent in value in August compared with a year ago.

According to a Reuters report quoting Abu Dhabi Gold and Jewellery Group Chairman Tushar Patni “It was the best month the market has seen in almost 30 years and it compensated for any drops we have seen earlier this year.  We had never expected that if gold fell below $800 an ounce we would see a 300 percent increase in volume and 250 percent in value, especially as many buyers are abroad on holiday.”

Read moreGold demand soars. Price falls. What’s going wrong?

Dead In The Water – The Sinking of the USS Liberty

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During the Six-Day War, Israel attacked and nearly sank the USS Liberty belonging to its closest ally, the USA.

Thirty-four American servicemen were killed in the two-hour assault by Israeli warplanes and torpedo boats. Israel claimed that the whole affair had been a tragic accident based on mistaken identification of the ship.

The American government accepted the explanation. For more than 30 years many people have disbelieved the official explanation but have been unable to rebut it convincingly.

Now, Dead in the Water uses startling new evidence to reveal the truth behind the seemingly inexplicable attack. The film combines dramatic reconstruction of the events, with new access to former officers in the US and Israeli armed forces and intelligence services who have decided to give their own version of events.

Interviews include President Lyndon Johnson’s Secretary of Defence Robert McNamara, former head of the Israeli navy Admiral Shlomo Errell and members of the USS Liberty crew.


Source: Google Video

Scientists get death threats over Large Hadron Collider

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Scientists working on the world’s biggest machine are being besieged by phone calls and emails from people who fear the world will end next Wednesday, when the gigantic atom smasher starts up.

The Large Hadron Collider near Geneva, where particles will begin to circulate around its 17 mile circumference tunnel next week, will recreate energies not seen since the universe was very young, when particles smash together at near the speed of light.


Hadron Collider: The final pieces slot into place

Such is the angst that the American Nobel prize winning physicist Frank Wilczek of the Massachusetts Institute of Technology has even had death threats, said Prof Brian Cox of Manchester University, adding: “Anyone who thinks the LHC will destroy the world is a t—.”

The head of public relations, James Gillies, says he gets tearful phone calls, pleading for the £4.5 billion machine to stop.

Read moreScientists get death threats over Large Hadron Collider

Main Bank of China Is in Need of Capital

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Dollar and yuan currency at a bank in China. China’s central bank has accumulated about $1 trillion in United States debt.

HONG KONG – China’s central bank is in a bind.

It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and mortgage-backed debt issued by Fannie Mae and Freddie Mac.

Those investments have been declining sharply in value when converted from dollars into the strong yuan, casting a spotlight on the central bank’s tiny capital base. The bank’s capital, just $3.2 billion, has not grown during the buying spree, despite private warnings from the International Monetary Fund.

Now the central bank needs an infusion of capital. Central banks can, of course, print more money, but that would stoke inflation. Instead, the People’s Bank of China has begun discussions with the finance ministry on ways to shore up its capital, said three people familiar with the discussions who insisted on anonymity because the subject is delicate in China.

Read moreMain Bank of China Is in Need of Capital

Russian Lawmaker Says Moscow to Deploy Weapons Near Poland

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A senior Russian lawmaker says Moscow will deploy high-precision weapons near Poland, in response to a U.S. – Poland missile defense agreement signed in Warsaw last month.

Viktor Zavarzin, head of the defense committee in the State Duma, said Thursday Russia has new weapons that will be installed near the sites where Washington plans to deploy interceptor missiles.

Read moreRussian Lawmaker Says Moscow to Deploy Weapons Near Poland

Ron Paul supporters’ magical disappearing act

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Ron Paul, the Texas congressman who unsuccessfully sought the Republican nomination for president, has been said to resemble Gandalf, the magician from the movie version of “The Lord of the Rings.”

Republican officials seemed to make Paul’s supporters magically disappear during Wednesday night’s roll call vote, in which the GOP convention officially nominated John McCain as the party’s presidential candidate.

Read moreRon Paul supporters’ magical disappearing act

World’s richest got even richer last year

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NEW YORK (Reuters) – The old saying holds true: The rich do get richer.

Even as world financial markets broke down last year, personal wealth around the world grew 5 percent to $109.5 trillion, according to a global wealth report released on Thursday by Boston Consulting Group.

It was the sixth consecutive year of expanding wealth. The fastest growth was among households in developing regions, such as China and the Gulf States and among families who were already rich.

That wealth also is increasingly concentrated among the richest.

The top 1 percent of all households owned 35 percent of the world’s wealth last year. Meanwhile, the top 0.001 percent, ultra-rich households holding at least $5 million in assets, commanded $21 trillion — a fifth of the world’s wealth.

Read moreWorld’s richest got even richer last year

Who is Wrecking America?

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By PAUL CRAIG ROBERTS

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review.

Does the liberal-left have a clue? I sometimes think not.

In his book, “What’s the Matter With Kansas?,” Thomas Frank made the excellent point that the Karl Rove Republicans take advantage of ordinary’s people’s frustrations and resentments to lead them into voting against their best interest.

Frank’s new book, “The Wrecking Crew: How Conservatives Rule,” lacks the insight that distinguished his previous book. Why does Frank think that conservatives or liberals rule?

Neither rule. America is ruled by organized interest groups with money to elect candidates who serve their interests. Frank’s book does not even mention the Israel Lobby, which bleeds Americans for the sake of Israeli territorial expansion. Check the index. Israel is not there.

Read moreWho is Wrecking America?

Is Google Turning Into Big Brother?

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The Debut of Chrome, Google’s New Browser, May Have Been Quiet for a Reason

While we’re transfixed by the presidential election, in the world of high tech another duel between two well-funded, take-no-quarter candidates has just emerged & and in the long run the impact on our daily lives may be nearly as great — and perhaps even sinister.

Read moreIs Google Turning Into Big Brother?

Hold the Spinach, Hold the Lettuce – the FDA Wants to Nuke Our Veggies

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(NaturalNews) The FDA has just announced that food producers may now start zapping lettuce and spinach with just enough ionizing radiation to kill E. coli. The muckety-mucks at the FDA have decided, in their infinite wisdom, to use the American public as guinea pigs in an ongoing human experiment to find out the long-term effects of the consumption of irradiated food.

In spite of the FDA’s insistence that eating food treated with just a wee bit of ionizing radiation is safe, Public Citizen (a consumer watchdog group founded by Ralph Nader in 1971 for the purpose of protecting health, safety, and democracy) believes otherwise (understatement) and is trying to get the word out to consumers about the lies that are being told to the trusting American public.

Read moreHold the Spinach, Hold the Lettuce – the FDA Wants to Nuke Our Veggies

GM, Ford, Chrysler Sales Collapse

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Chrysler President Jim Press: “Maybe towards the end of ’09, going into 2010, there’ll start to be some signs of recovery.” Maybe not.
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The Wall Street Journal is reporting Auto Sales Tumble, But Industry Sees Signs of Hope.

Sales of cars and light trucks fell 15.5% to 1.25 million last month, down from 1.48 million a year earlier, according to Autodata Corp. The closely watched seasonally adjusted annualized selling rate was 13.7 million vehicles, up from 12.55 million in July, but down from 16.3 million in August 2007, Autodata said.

Read moreGM, Ford, Chrysler Sales Collapse

House prices suffer biggest fall since records began

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House prices: Dropped by more than £25,000 over the past year. Photo: Cate Gillon/Getty

House prices fell by 1.8% in August, bringing the average price of a property in the UK below the government’s new stamp duty threshold, figures showed today.

The UK’s largest lender, Halifax, said the average price of a property had fallen by 12.7% since last August – the biggest fall since it began publishing a monthly survey in the early 1980s.

Prices have dropped by more than £25,000 since August 2007 when the average cost of a home was £199,612, and by more than £3,000 since July.

Read moreHouse prices suffer biggest fall since records began

Secret Service confiscates books & buttons from Ron Paul delegates

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By: D. H. Williams @ 7:29 PM – EST

Today at the Republican National Convention, as the Ron Paul Delegates were taking a picture in front of the model White House inside the Convention Center, they were surrounded by Secret Service which proceeded to search the bags of all the delegates. They took any and everything related to Ron Paul including signs, buttons, videos, slim jims, cards, even books.

Read moreSecret Service confiscates books & buttons from Ron Paul delegates

In The Eye Of The Storm

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By John Browne, senior market advisor – Euro Pacific Capital

As we enter the height of the hurricane season, it may be worthwhile to recall, when considering the economy at large, the particular deception that lurks in the “eye” of the storm. After a raging tempest, the sudden appearance of the calm ‘eye’ can all too easily encourage people to leave their shelter in order to assess and even repair damage, exposing themselves to the often more devastating second leg of the hurricane.

We have long warned our readers of a coming real estate crash which would then lead to a credit crunch, and eventually a major round of bank failures. We have argued that these developments would be the precursors to a major recession, and perhaps a depression.

As predicted, the collapsing values of bonds backed by subprime mortgages did indeed lead to a collapse of the entire mortgage market, a bank liquidity crisis, a credit crunch and a steep fall in consumer confidence. This was the first leg of the storm, but the full blown banking collapse and the deep recession are not yet manifest. The conventional wisdom holds that the bullet has been dodged.

Read moreIn The Eye Of The Storm

Storm-hit Haitians starve on rooftops

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· No food or drinking water as tempests batter nation
· Desolation in Cuba is like Hiroshima, says Castro

Friday September 5 2008

Haiti was reeling last night from a series of tropical storms which devastated crops and infrastructure and left bodies floating in flooded towns. Three storms in three weeks unleashed “catastrophe” and submerged much of the impoverished Caribbean nation, said President Rene Preval. A fourth storm, Ike, was gathering force in the Atlantic and could strike next week.

More than 120 people have died, thousands are homeless and agriculture and transport networks have been washed away, prompting calls for emergency international aid.

“There are a lot of people who have been on top of the roofs of their homes over 24 hours now,” the interior minister, Paul Antoine Bien-Aime, told Reuters. “They have no water, no food and we can’t even help them.”

Read moreStorm-hit Haitians starve on rooftops

Pakistan: Uproar grows over first ground assault by US troops

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Pakistani military officials fear American intervention in the tribal areas could spark a rebellion, derailing counterterrorism operations.

United States forces conducted their first ground assaults into Pakistani territory from bases in Afghanistan early Wednesday morning in a raid on a suspected Taliban stronghold in South Waziristan, one of Pakistan’s lawless tribal areas. The attack has caused an uproar in Pakistan and raised concerns of a new period of tension between the US and its valuable, nuclear-armed ally in the war on terror, which has entered a period of political uncertainty after the resignation of long-serving president Pervez Musharraf last month.

Read morePakistan: Uproar grows over first ground assault by US troops

JPMorgan Is Facing Federal Probe

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Sept. 4 (Bloomberg) — JPMorgan Chase & Co. will stop selling interest-rate swaps to government borrowers in the $2.6 trillion U.S. municipal bond market roiled by an antitrust probe and the near bankruptcy of Alabama’s most-populous county.

At least seven former JPMorgan bankers are under scrutiny in a Justice Department criminal investigation of whether banks conspired to overcharge local governments on swaps and other derivatives. The bank also is embroiled in negotiations over how to resolve a debt crisis with Jefferson County, Alabama, where the county’s former adviser says a group of firms led by JPMorgan, the third-largest U.S. bank by assets, overcharged it by as much as $100 million for financing a new sewer system.

Read moreJPMorgan Is Facing Federal Probe

Lehman May Shift $32 Billion of Mortgage Assets to `Bad Bank’

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Sept. 4 (Bloomberg) — Lehman Brothers Holdings Inc. may shift about $32 billion of commercial mortgages and real estate to a new company that will be spun off in a move similar to the good-bank-bad-bank model used in the 1980s banking crisis, two people briefed on the discussions said.

Read moreLehman May Shift $32 Billion of Mortgage Assets to `Bad Bank’

The U.S. is getting pounded this season

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Sept. 4 (Bloomberg) — Tropical Storm Hanna skirted the Bahamas after killing dozens in Haiti and threatened to strike the U.S. Southeast as a hurricane by the weekend.

Farther out to sea, the “extremely dangerous” Hurricane Ike was packing 140-mph (225-kph) winds, the U.S. National Hurricane Center said.

Read moreThe U.S. is getting pounded this season