The Economy

Sowing the Seeds of Mass Inflation

Around the time Elvis Presley choked on his last pill the impossible happened; inflation and unemployment increased simultaneously. Economists were confounded.

According to the Philips curve there was supposed to be an inverse relationship between inflation and unemployment. When the unemployment rate increases, the inflation rate decreases. Conversely, when the unemployment rate decreases, the inflation rate increases.

How could it be that both were going up at once? Of course, it took years of government intervention into the economy to pull off such a feat. Let’s explore…

GAO: Almost Half of Bailed Banks Repaid the Government With Money “From Other Federal Programs”

As of January 31, 2012, 341 institutions had exited CPP, almost half by repaying CPP with funds from other federal programs. Institutions continue to exit CPP, but the number of institutions missing scheduled dividend or interest payments has increased.

An American Auto Bailout – For France?

Attention U.S. taxpayers: You now own a piece of a French car company that is drowning in red ink.

Travel insurance loophole devastates B.C. couple

Manulife says Bill should have answered yes to this question about two conditions:

“In the last two (2) years, have you been prescribed or received treatment for and/or been hospitalized (as an in-patient or seen in the emergency department) and/or been prescribed or taken medication for any of the following conditions: diverticular disorder or gastrointestinal bleeding?”

Susan Eng of CARP, a Canadian advocacy group for people over 50, says the system is set up for claims to be denied.

“Ordinary people are out thousands and thousands of dollars because they did not get the protection they thought they had — only because they made a mistake on the form that they could not possibly have done correctly,” she said.

The money-junkies have infected Canada now!

Goldman Sachs told U.S. (when push comes to shove) they WILL BE Paid for Debt BEFORE Social Security and Medicare Recipients! Forget citizens PAY BANKS!

Right now I am trying to remain calm and not use the four letter words I am thinking at this moment!

A report released today by Goldman Sachs says that if push comes to shove, the federal government will pay its lenders before it pays Social Security and Medicare beneficiaries. Debt service “should be seen as the top claim on government resources in most cases,” says the Goldman analysis.

Not too warm for a Labor Dept. snow job

Labor’s figures — as I’ve been telling you for years — don’t give a very good depiction of what is going on in the economy at a particular moment in time. The department wouldn’t argue with that statement.
That’s why Labor adjusts and adjusts and adjusts its statistics. Only after those tweaks do you get a very clear idea of what the economy was doing two years ago.
And if you don’t believe people are still very concerned about money issues, just visit a soup kitchen here in New York City.

Kicking every can down the road

Kicking the can down the road: That’s been the Obama administration’s response on issues from Iran’s nuclear-weapons program to America’s entitlement systems. Last week at a Budget Committee hearing, Treasury Secretary Timothy Geithner was chided for not having proposed any solution to the looming entitlement crisis.

Crony capitalism: Green firms burn through taxpayer dollars, pay huge executive bonuses, then go bankrupt

The Obama Administration’s green energy development program, which has leveraged billions of taxpayer dollars into high-risk green energy startups, is rapidly turning out to be one of the biggest financial scams on the American people in recent history. A new investigative report by ABC News has revealed that many of the now-bankrupt green energy companies that received massive taxpayer-funded loan infusions from the Department of Energy (DOE) awarded huge cash bonuses to their executives shortly before crumbling.

Court Says MF Global Executives Still GET Bonuses for 2011! WTF? They Stole people’s money and they are getting Bonuses?!

WOW seriously, all the bank news this morning is mind boggling. Court is allowing MF Global executives to get bonuses for 2011! Let’s see they stole billions out of people’s personal accounts and now the court is rewarding them for it?!

The payments could vary in size depending on progress with the estate and likely would be paid in batches throughout 2012, a person familiar with the matter said. The total payouts are expected to be smaller than bonuses received by the same executives before MF Global sank amid panic over the big bets made on European sovereign debt under Jon Corzine, the company’s former chairman and chief executive. He resigned in November.

Ellen Brown: Public-Sector Banks: From Black Sheep to Global Leaders

When we remove our myopic US blinders, it turns out that, globally, not only are publicly owned banks quite common, but countries with strong public banking sectors generally have strong, stable economies….

“…We suggest that politicians may actually prefer banks not to be in the public sector…. Conditions of weak corporate governance in banks provide fertile ground for quick enrichment for both bankers and politicians – at the expense ultimately of the taxpayer.

Bank of England base rate ‘to stay at all-time low until 2015′ as ANOTHER lender hikes mortgage costs

The record low interest rates have robbed savers of £76billion over the past three years, compared with the higher rates they were paid in the previous three.

Obama Will Make Taxpayers Guarantee Mortgages Without Checking Borrowers’ Incomes or Employment

( – Wth no authorization from Congress, President Barack Obama has announced that his administration–through the Federal Housing Administration–will insure refinanced mortgages for 2 to 3 million borrowers without verifying their income or even if they hold a job, according to the Department of Housing and Urban Development (HUD).

Obama announced his latest mortgage program at a White House news conference on Tuesday.

Any American with a mortgage insured by the Federal Housing Administration (FHA) endorsed on or before May 31, 2009 and who is current with their mortgage payments would qualify, according to HUD.

No additional underwriting, or examining the verification of income, employment status or creditworthiness, will be done.

Life in America on Two Dollars a Day. Or Why American Poverty Will Soon Match That of the Third World

A catchier title might have been Life on Two Dollars a Day: The Third Worldization of America. But one must try always to be accurate, and the Third World was defined by Mao Tse Tung by distinction from the first two worlds: America and its tributaries, the so-called Free World (a term now hardly ever used — I wonder why), and the Soviet Empire. So although America may come to look like the Third World, it will never be part of the Third World — at least, not until another country becomes Number 1.

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