Tag Archives: ECONOMICS

THE STATE OF NEW JERSEY IS GIVING GOLDMAN SACHS $1MILLION A MONTH OF TAX PAYERS MONEY FOR INSURANCE ON BONDS THAT DON'T EXIST

GREETINGS,

 

  YEP YOU READ THE HEADLINES RIGHT.I GUESS ITS A CASE OF FAT CATS HELPING FAT CATS UNTIL OUTRAGE REACHES A PEAK?…….AND THIS IS TAKING PLACE WHILE THEY CONTINUE TO SUFFER BUDGET GAPS AND SERVICES AND PAY CONTINUES TO GET REDUCED.BUT THAT REALLY DOESN’T MATTER BECAUSE…..THEY CAN ALWAYS FIND A LITTLE CHANGE IN THE COUCH FOR GOLDMAN SACHS!

Goldman Sachs Still Paid for Swaps on Redeemed Bonds (Update2)

 

By Dunstan McNichol

Oct. 23 (Bloomberg) — New Jersey taxpayers are sending almost $1 million a month to a partnership run by Goldman Sachs Group Inc. for protection against rising interest costs on bonds that the state redeemed more than a year ago.

The most-densely populated U.S. state is making the payments under an agreement made during the administration of former Governor James E. McGreevey in 2003, when New Jersey’s Transportation Trust Fund Authority sold $345 million in auction-rate bonds whose yields fluctuated with short-term interest costs. The agency finances road and rail projects.

“This vividly shows the risk of entering into interest- rate swap agreements,” said Christopher Taylor, former executive director of the Municipal Securities Rulemaking Board in Alexandria, Virginia. “The world’s got to see what stupidity even the sophisticated investors like the transportation fund can get into.”

While New Jersey replaced the debt with fixed-rate securities in 2008 after the $330 billion auction-rate bond market froze, the swap — in which two parties typically exchange fixed payments for ones based on floating interest rates — isn’t scheduled to expire until 2019. Continue reading

FORTRESS AMERICA TREMBLES AS HER ECONOMIC PILLARS CRUMBLE

GREETINGS,

 

  TODAY WE ARE WATCHING THE DEATH AND FALL OF THE MOST POWERFUL CIVILIZATION IN THE LAST 6,000 YEARS.HER (AMERICA’S) FALL IS BECOMING CLEARER AND CLEARER.IT IS A MAGNIFICENT SPECTICLE TO WATCH.

  EVERY SIGN IS POINTING IN A ONE WAY DIRECTION AND THAT DIRECTION IS TOWARDS THE GRAVEYARD OF COUNTRIES PAST THEIR TIME. TO UNDERSTAND THE PREDICAMENT AND DIRE SITUATION THAT AMERICA IS NOW FACING JUST LOOK AT SIGNS IN HER ECONOMIC REALM;” Continue reading

THE WHITE FINANCIAL ORDER….A DYING BREAD

GREETINGS,

The archdeceivers force war against themselves. Their ultimate aim is to do as their people always have done — try to destroy the preacher of truth and those who believe and follow him. This was the aim of Cain when he slew his brother, Abel, and the aim of the dragon when he sought to destroy the woman (the Messenger), as it is written in Revelations 12:4.

7 The lost-found members of that nation should be taught to know the ultimate aim of this world. God has visited them, and has prepared a teacher (in myself) to teach them, thereby making it easy for them to understand and recognize this world and its secret, ultimate aim. It is even given in the Bible, in Revelations 12:9. There it speaks of the members belonging to the righteous nation, and shows that through deceit, Satan causes them to become as himself — against the truth, peace, justice, safety and security one would enjoy if he only were not deceived. Continue reading

ENGLAND'S DOOM IS SEALED AND ELIJAH SAID IT FIRST

GREETINGS,

MESSENGER ELIJAH MUHAMMAD—–,”THE FALL OF AMERICA”,pg.87;”The strong-hold of the American government is falling to pieces. She has lost her prestige among the nations of the earth. One of the greatest powers of America was her dollar. The loss of such power will bring any nation to weakness, for this is the media of exchange between nations. The English pound and the American dollar have been the power and beckoning light of these two great powers. But when the world went off the gold and silver standard, the financial doom of England and America was sealed. Continue reading

EVERYONE (IN ECONOMICS) IS NOW HERALDING …"THE DECLINE OF THE DOLLAR"

——ELIJAH MUHAMMAD,” The strong-hold of the American government is falling to pieces. She has lost her prestige among the nations of the earth. One of the greatest powers of America was her dollar. The loss of such power will bring any nation to weakness, for this is the media of exchange between nations. The English pound and the American dollar have been the power and beckoning light of these two great powers. But when the world went off the gold and silver standard, the financial doom of England and America was sealed. Continue reading

A SIGN OF THE FUTURE OF AMERICA

California ‘first failed US state’?

By Rob Reynolds in Los Angeles

More Californians rely on food handouts amid rising unemployment and state benefit cuts [EPA]

On Sunday mornings at Glide Memorial United Methodist Church in the rough-edged Tenderloin district of San Francisco, the sanctuary is always rocking to old-school gospel music.

“It’s so good to come together,” Pastor Cecil Williams declares. His is a diverse congregation – white and African-American, gay and straight, young and elderly. Continue reading

THE AMERICAN HOUSE'S CRUMBLING FOUNDATION

GREETINGS,

Confidential Memos Indicate Oil SDR Pricing Shift Would Be “Most Damaging” To United States And Precipitate “Serious Market Reaction”

Tyler Durden's picture

Submitted by Tyler Durden on 10/06/2009 10:29 -0500

    A recently declassified, formerly Confidential, 30 year old memo prepared by Henry Owen for President Jimmy Carter’s eyes only, highlights the perils facing the United States if oil were to be priced in SDRs instead of dollars, a topic which is all the rage today as rumors are swirling that this is an imminent transition to be “put” upon the United States.

    In response to your request, we have considered, and discussed with other agencies, whether the US should favor use of SDRs instead of dollars, to pay for cure oil… I have concluded that dollar pricing should be maintained — a view that is shared by State, Treasury and CEA. 

    The reasons:

    1. An announcement that dollars were no longer being used as the unit of account in paying for oil would trigger selling of dollars on the foreign exchange markets. So we would suffer.

    2. I don’t see any offsetting gain, since OPEC would probably raise prices in SDR terms, as necessary to recover revenue losses if the SDR appreciated relative to the dollar.

    And the conclusion:

    We might be able to persuade the OPEC countries to make the shift if the dollar weakened but that’s precisely when the move would be most damaging to us.

    Poor Mr. Owen- little did he realize that a mere 3 decades after this memo was penned, the administration would be consumed by a bunch of Wall Street pandering, middle class extortionists, who seek nothing else than to inflate the trillions of toxic “asset” loans that make up the broken backbone of the American financial system. It would come as no surprise if the move is now in fact spearheaded by the same administration which has no other purpose in life than to destroy what little savings Americans have and to throw all their cash to prop up artificially inflated equity prices so that insiders can sell their stock at agreeable levels, and so the toxic companies can use the run up to issue follow on offerings, moderating their untenable debt holdings.

     

     

    Even more troubling, in another declassified memo, former Undersecretary of the Treasury and President of the New York Fed, Anthony Solomon, reaches this damning conclusion:

    The choice of the unit of account for oil pricing is basically under the producing countries’ control. There is no particular economic reason why a shift from the dollar would be contrary to U.S. interest — unless the dollar were to depreciate significant in relation to the currencies in the pricing basket. But there could be major psychological effects. Given the unsettled conditions in the foreign exchange market [TD: so true today, 30 years later], such a step at this time could be interpreted as a lack of confidence in the dollar and as presaging a shift in OPEC investment policy away from the dollar. It could precipitate a serious market reaction.

     

    Alas, even President Carter, seen by many as one of the worst American president in American history was smart enough to not bury his own middle class at the expense of landed Wall Street interests. It is a pity that his current incarnation, advised by the Bernanke-Summers-Geithner think tank, has such diametrically opposing motivations.

    h/t Geoffrey Batt for document procurement

EVERYDAY MORE AND MORE INFORMATION IS BEING REVEALED TO EXPOSE THE WOBBLING WEAKENING FOUNDATION OF AMERICA(ECONOMICALLY,MILITARILY,AND SPIRITUALLY) WHICH WAS ONCE UNHEARD OF TO THINK SUCH….THE ONCE ROCK HARD(IN APPEARANCE) AMERICAN POWER PROJECTION IS NO MORE AND THE THREAD BY WHICH IT MAY HANG IS SPLITTING ITS LAST FIBERS.

Continue reading

THE LAWS OF CAUSE AND EFFECT…THE GIFT THAT JUST KEEPS ON GIVING

GREETINGS,

ELIJAH MUHAMMAD—-,”I want to tell you who think that you are inferior, who think that you are nothing, who think that the white race is superior and the wisest people there ever were — that you are mistaken.

5 I want to satisfy your minds, my friends, my brothers, my sisters, that you fear not that the white world will destroy us. They cannot do it. We have a Savior with us.

6 We have a Savior that is born. I do not think any white ruler is silly enough to destroy the Muslims. I do not think that the white government of America would try to force us to our knees by not giving us employment. If they do so, come to me. Continue reading

WHAT NOT BEING ABLE TO BUY OIL IN DOLLARS MEANS

What Not Being Able To Buy Oil In Dollars Means

By Ian Welsh

October 09, 2009 “Crooks and Liars” —  The big news this week on the financial front was the Independent’s claim that Gulf Arabs and France, Japan, Russia and Japan were planning to move from buying oil in dollars to buying it in a basket of currencies, including gold and a new universal currency shared by the Gulf nations.Buying oil in dollars is one of the foundations of the dollar’s role as the world’s primary reserve currency. Because the the dollar is the world’s primary reserve currency Americans have been able to borrow money for significantly less than other countries are able to. This has both made America more prosperous, and through the perverse incentives of cheap money, helped lead to the high indebtedness of American citizens and the financial crisis. Continue reading

THE FINANCIAL CRISIS UNPLUGGED

GREETINGS

 

“The stated objective of the bank bailout programs is to alleviate the banks’ burden of bad debts and non-performing loans. Continue reading