Who have they jailed in the USA for destroying the world's economy?

Does it get any nuttier than this? All the best to "Occupying Wallstreet"

The 400 Biggest Banks and Their Troubled Loans

Whichever way one reads this list of banks and their 'troubled' loans - it is a real shocker. Things are getting worse and not better. How long before the lid comes off and the financial world simply blows up? Next year?

http://www.msnbc.msn.com/id/29619236/ns/business-us_business

Chinese students laughed at Timothy Geithner's assurances over the Dollar

This says it all! It's a tribute to Chinese students that they are up-to-speed on the Dollar. It's also an embarrassment for the world's foremost power.
http://www.gata.org/node/7461

PBS's Bill Moyes Talks to William K. Black about Banks

William K. Black wrote a book some time ago entitled, "The Best Way To Rob A Bank is to Own One". As a senior regulator of banks and he pursued fraud and corruption in the 80s. He is now Associate Professor of Economics and Law at the University of Missouri.  He talks to Bill Moyes about the Savings and Loans crisis from the 1980s and he also offers  solutions to the current problems. Black's worryingly argues that the people who got us into this mess are the same ones who are being given trillions of dollars to get us out of it. The mess will remain unless people with probity and integrity are appointed key financial positions. And even then it will take years.

http://www.pbs.org/moyers/journal/04032009/watch.html

Can Paul Volcker Save The US and Capitalism Again?

In his fascinating speech given yesterday former Federal Reserve Chairman, Paul Volcker, gives his analysis and reactions on how the US and the world's economies have weakened "at a shocking rate" over the last year. ( See below ) What is most interesting about his speech is how he explicitly avoids what he and the President's team will do about the crisis in the coming days. There are strong hints that the banking system is going to be organised and regulated in manner far different from before. He is probably working with most of the world's governments to put together international regulations on banks to take account of our global business world: something the previous US administration did not have the wit nor relationships to do. It is increasingly apparent that the manner in which the world's banks and financial institutions were regulated had more in common with the Victorian age than with our own. Volcker thinks that he can save "capitalism" by doing this. But by his own admission if he fails, so too, will the capitalist world as we know it.

It was Paul Volcker who saved the US economy and its dollar in the early 80s with high interest rates. The cost of this was the destruction of much of the US's industrial base. At 81 whether he and his economic team can salvage the capitalist economic system remains to be seen. Due to globalisation the economic problems this time are far greater and higher interest rates would damage the US and much of the world's economies. Masses of jobless, homeless, starving people would demand a revolution and a different economic system.

In an interview with Charlie Rose last September Volcker offered a vignette about FDR Roosevelt closing the banks for several days to sort out the good ones from the bad. Roosevelt gave a fire-side chat on the radio to reassure Americans that the new banks would be safe and when the banks opened after four days the US public believed him. They trusted the banks that reopened because of the President's crediblity. Volcker laughed at this because Roosevelt knew that there was no way that the banks could have been thoroughly checked out in that time. It was a piece of theatre intended to inspire public confidence, something that most bankers and politicians are unable to emulate today. Roosevelt inspired confidence and that made the difference. Of course, the US economy and others around the world continued to suffer the effects of the Depression because their economies were too badly led and damaged before Roosevelt's arrival in office. Banks are the backbone of capitalism and if Volcker and Obama's economic team can restore confidence in banks the rest will fall into place.

By the way, the other thing that FDR Roosevelt did that should have been done before he entered office was to devalue the dollar and increase the price of gold. His predecessor and his advisers did not understand the damage that a strong dollar would inflict on the US economy. Somehow I don't think Volcker and Obama will repeat this mistake.

The UK - a land where workers have fewer rights than ANYWHERE else in Europe

The sacking of the "agency" BMW workers where they only received "one hour's notice" is just one of the "fruits" of Tony Blair and P.M. Brown's proudly proclaimed "opt outs" from workers' rights, such as "the working time directive" and other rights which would have protected agency workers; workers who would never have been "agency workers" in the first place had they the luck to be citizens in other, less punitive, European Union states. 

The trades unions have also conspired against their members by drawing their own generous salaries, no doubt enhanced by commissions for selling home and car insurance, and the like, instead of striving to protect and improve the working rights and conditions of their members. Like the "watchdogs" who failed to monitor Britain's banks and other financial institutions Britain's trade unions have, with only rare exceptions, embraced consumer style capitalism and forgotten what they formed to do!

When British workers wake up to having been sold out "for years" by successive governments, their media and their unions there will be hell to pay in that increasingly impoverished country.

The "muddy trench" of Labour's "Third Way" has been the consumer strewn path to oblivion - for everyone.

http://news.bbc.co.uk/1/hi/business/7891913.stm


The YouTube video shot by one of the workers shows the shameful collusion of the union, Unite, with its officials representing management telling the workers that they were sacked. The Union were in talks with BMW's management for three weeks but said nothing to the agency workers until an hour before they were sacked. The workers had PAID DUES to the union but union representation was an illusion. Notice how the union representatives look like middle-aged skinhead thugs whereas the workers are mostly immigrants. The union "representatives" show little sympathy and actually say that they support the reduction of shifts that led to the sacking of the agency workers. The collusion of unions with big business and in the public sector has led to the betrayal of workers' rights for 'geld' and position over the last thirty years. This just could not have happened in the 1970s.

The union officials in the video are the modern equivalent of the Jewish policemen in the Warsaw Ghetto. Too many unions have allowed themselves to become management's industrial police men and women. Their exposure as such will become even more evident as the banker induced 'Depression' hits home over the next few years.

'A Monetary Stalingrad" is on its way to Europe

With journalists like Ambrose Evans-Pritchard and at least two other colleagues at The Telegraph this newspaper sports the most knowledgeable financial journalists in print of any UK newspaper. Little, if anything can be learned from those in other broadsheets and the tabloids offer mere escapism. Nor is financial education much better on the radio or TV. The BBC'S Robert Peston is laughably overrated and followed by the ignorant in the media as well by the public. He is always behind the economic curve. Only Max Keiser's satirical programme "The Oracle" offers "a late night" realistic view of world economics on the BBC.

Europe's loans to Eastern Europe's states within and outside the EU are going to cause the next world economic storm - and that is still while the US and UKs' banks are bankrupt and their debts are bankrupting their countries. Latvia's economy along with most UK and US banks is "clinically dead" and the Bank Austria and its Italian owner is facing "a monetary Stalingrad". Depending which figures one wants to accept Germany's gross domestic product shrank between 8 to 9 per cent in the last quarter! Ireland and several other EU countries are effectively bankrupt! The storm could hit within days or weeks. Major political upheaval and change will ensue.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

False Diagnosis of Deflation - Jim Willie

Pertinent and perceptive, Jim Willie's latest is one of the best reads out there.
http://www.321gold.com/editorials/willie/willie010209.html

How Venice Rigged the First, and Worst, Global Financial Crash

It appears that J.P. Morgan, Goldman Sachs and Barrick Gold have nothing on the bankers from Florence and Venice! Those Venetians knew all the moves well before anyone else! Now those guys were the masters of derivatives. Gallaher's article from thirteen years ago was early - but there's plenty to be learned from it. Looks like the 1340s has a lot more in common with the noughties than I thought.

"How Venice Rigged the First, and Worst, Global Financial Crash" by Paul Gallaher.

"Six hundred and fifty years ago came the climax of the worst financial collapse in history to date. The 1930s Great Depression was a mild and brief episode, compared to the bank crash of the 1340s, which decimated the human population."

http://www.schillerinstitute.org/fid_91-96/954_Gallagher_Venice_rig.html

It's long one but a good'un!

Fannie and Freddie bail out - but what will this do for gold?

The bail out will add to the US debt and will mean increased money supply and inflation. As the FED and other central banks fear deflation more dollars will be created in the weeks and months ahead - and this will do wonders for the price of gold.

The coming "prime crisis" and a killer reason for the forthcoming rise in gold

Jim Willie's latest has some amazing charts, an interesting reason for a rise in gold shares and some startling statements on the coming "prime crisis" which, he claims, will be greater in magnitude because of falling property prices and bankrupt bond insurers and banks.
http://www.gold-eagle.com/editorials_08/willie052808.html

The Banking Crisis Renewed?

With the fall in the prices of UK banks because of their need for huge rights issues it looks as if the banking crisis is back after being discounted by the Bank of England only last week! Is this the catalyst for precious metals and their associated equities? Perhaps. One fund manager thinks that some UK banks are "in denial" and that they will have to raise another £10 billion in a rights issue in less than a year's time.
http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=303307

What could be the biggest banking crisis of all time could still well play out!

Fed Eyes Nordic-style nationalisation of US banks!

The US Federal Reserve is examining the Nordic bank nationalisations of the 1990s as a possible interim solution to the US financial crisis.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/31/cnfed131.xml

Non-Borrowed Reserves of Depository Institutions from the FED

Sinbad posted this link over on Goldtent and said that it was "scary". If, it's not a blip and a true reading - it's the stuff of nightmares!
http://research.stlouisfed.org/fred2/series/BOGNONBR

Wall Street fears for next Great Depression

From London's broadsheet, The Independent

By Margareta Pagano, Business Editor
Sunday, 16 March 2008

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.

One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed's emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: "Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we're just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow."

In the UK, Michael Taylor, a senior market strategist at Lombard, the economics consultancy, said on Friday night: "We have all been talking about a 1970s-style crisis but as each day goes by this looks more like the 1930s. No one has any clue as to where this is going to end; it's a self-feeding disaster." Mr Taylor, who had been relatively optimistic, has turned bearish: "It really does look as though the UK is now heading for a recession. The credit-crunch means that even if the Bank of England cuts rates again, the banks are in such a bad way they are unlikely to pass cuts on."

http://www.independent.co.uk/news/business/news/wall-street-fears-for-next-great-depression-796428.html

The Federal Reserve's rescue has failed

This is Ambrose's first article for two months and it looks like a good one, too.

The verdict is in. The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed.

	The Federal Reserve building in Washington

Yields on two-year US Treasuries plummeted to 1.63pc on Friday in a flight to safety, foretelling financial winter.

Looks like Ambrose is scared!

"For the first time since this Greek tragedy began, I am now really frightened."
For more:
By Ambrose Evans-Pritchard,
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/03/ccview103.xml

Rescue plan to save Deutsche Industrie Bank

How will this affect the euro? Got gold or silver or related equities?
Germany faced its "Northern Rock moment" last night as top ministers and bankers thrashed out a rescue plan to save IKB Deutsche Industrie Bank, fearing a "bank tsunami' if the struggling lender was allowed to fail.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/14/cnikb114.xml

"Top of the world, Ma!"

The more I think about the current state of the banking system the more I am reminded of the ending of Jame's Cagney's "White Heat" ( 1949). The danger is that it could bring us all down!

WELCOME to visitors from Goldtent

Click on the image to see the animated version!

Ever since Fullgoldcrown's post there has been a rush of visitors to this site from Goldtent, the premier site for gold and silverbugs on the Net. I feel honoured to receive fellow goldbugs. I just wish my site was easier to navigate because I've made several gold, silver and bank related posts since last July. If I had my chance to start again I would have used Wordpress. However, try the labels on this post and likely words in the search box.

When the exams are on and the students are at college I tend to post more on literature. Otherwise it's gold and related topics that interest me.

Whoever you are, welcome and may we all profit from the coming major rise in gold and silver with their related equities!

Thanks also to Fullgoldcrown, an administrator at Goldtent, for his generous comments. I need to join your site to comment and I'll do so ASAP!

The Western Banking System - "Made it Ma - Top of the World!"

Yesterday, UBS reported a further $10 billion in losses from sub prime/cdo fiasco. This was after reporting $1.5 billion dollars recently. The banking tsunami is still in its early phase. We've seen nothin' yet! In order to stay afloat UBS had sell a major chunk of their business to get vast sums from Singapore and the Middle East to make up for these losses.Time will whether these investments will make any difference to the survival of this bank and several others.

Meanwhile one wonders just what is "holding up" some of the western and asian banks. I'm reminded of the 1949 movie, "White Heat" in which the gangster, Cody Jarret (James Cagney) is shot by the FBI inside man, Edmond O'Brien. The latter shoots Cody several times and wonders "What's holding him up?" Cody shoots into the gas tanks below and bellows, "Made it Ma - top of the world!" before blowing himself to kingdom come. The banks finally made it to "The top of the world" only to risk implosion at the peak of their success!
http://www.reelclassics.com/Audio_Video/Quotes7r/cagney_whiteheat_madeitma.wav