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G20 looks to Beijing to drive global growth

The G20 appears to be placing a large bet on China’s policymakers. At their summit last month, one developed country after another, bar the US, said they would cut fiscal deficits.

Download the Free Emergency Stockpile List

On this week’s radio show, I discussed the importance of having a emergency stockpile of food and water in addition to having a financial reserve. Click the following link to download an Emergency Stockpile List.

Merrill Lynch: The 3 big reasons gold and silver will soar

Merrill Lynch metals analysts maintain gold will hit a US$1,500 per ounce target by the end of next year as investor demand pushes gold prices higher.

Top 20 Global Banks by Market Capitalization: The Decline of American Banks & The Rise of Goldman Sachs

The Financial Times has a very interesting shockwave application showing how the top banks by market capitalization have changed for the last few years. You can clearly see the Goldman Sacks ascension and the decline of the American banks.

BIS gold swap – best news to hit gold in 30 years

In its 2010 annual report, the Bank of International Settlements said that “gold, which the bank held in connection with gold swap operations, under which the bank exchanges currencies for physical gold,” stands at 8,160.1 million in special drawing rights, equivalent to 346 tonnes this year, up from nil in 2009.”   Apparently this amount has now climbed to 382 tonnes since the report was issued.

Number of the Week: Euro Zone Debt Is Coming Due

Throughout the recession and recovery, many European banks have sought to sweep their problems under the carpet in the hopes that they could solve them in a better and more profitable future. Now, though, they’re running out of time.

America: Optimism on hold

A month ago, it all seemed to be going so well. Growth in the US economy was picking up. The financial system was, mainly, functioning. The risk of contagion from Europe had diminished after an unprecedented bail-out from the European Union and the International Monetary Fund. Things were creeping back towards normality.

America’s Empire of Debt

America’s Empire of Debt: In this special edition of Follow the Money Weekly, Jerry Robinson takes the entire hour to discuss America’s crumbling financial system and urges his listeners to take action.

Chinese airport closed after fiery UFO is spotted flying over city

A Chinese airport was closed after this mysterious object was spotted in the sky.

Are Overdue Reports Concealing ObamaCare Impact On Medicare?

Every year, the Annual Report of the Social Security Board of Trustees comes out between mid-April and mid-May. Now it’s July, and there’s no sign of this year’s report. What is the Obama administration hiding?

Richard Russell: Everything you need to know about gold in three sentences

…As I’ve said a thousand times, Fed Chief Bernanke will absolutely not accept deflation… Shrewd gold-accumulators are well aware of [this]. As the deflationary and deleveraging forces press on the US economy, the Bernanke Fed is ready to devalue the US dollar in its (“whatever it takes”) battle to hold back deflation.

IRS to begin tracking gold and silver coin purchases in 2012

A blizzard of paperwork could be about to hit numismatics. Passage by Congress of the national health care legislation has had an unintended consequence to the nation’s coin collectors, vest-pocket dealers who buy and sell coins, and larger dealers who are frequent buyers of coins that collectors periodically liquidate as they trade up their collections for better coins, or simply sell to take a small profit or loss.

Federal Budget Deficit Hits $1 Trillion For 1st 9 Months Of FY 2010

The federal budget deficit for the first nine months of the 2010 fiscal year was just over $1 trillion, the Congressional Budget Office reported Wednesday.

JIM ROGERS: Sell Bonds, Buy Precious Metals, Rice on Supply Shortages

“Bonds are not a good place to invest in,” Rogers said at a conference in Kuala Lumpur today. “You should own commodities because that’s your only refuge” whether it’s silver or rice, said Rogers, who predicted the start of the global commodities rally in 1999.

U.S. marks 3rd-largest, single-day debt increase

The National Debt Clock is shown Monday, Feb. 1, 2010 in New York. President Barack Obama sent Congress a $3.83 trillion budget on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs. The deficit for this year would surge to a record-breaking $1.56 trillion. The Debt Clock is a privately funded estimate of the national debt. (AP Photo/Mark Lennihan)

Shared sacrifice will be the new economic order

The laser-like focus on the global financial crisis means investors are back in contingency planning mode while the tools to fend off fiscal Armageddon are again being sharpened by governments and policy makers around the world. But, at times like these, it is important to understand where the real economic power resides, and that is with the people on Main Street.

Ben Bernanke Has Created Half of All the US Dollars in Existence – in Four Years!

“The U.S. turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder gold is in a full fledged bull market . . .”

The 23 Countries Most Likely To Default

http://www.businessinsider.com/here-are-the-23-countries-most-likely-to-default-2010-7#23-kazakhstan-1

Federal Reserve Surprise! "We may have to print more money" to spur "recovery"

Federal Reserve officials, increasingly concerned over signs the economic recovery is faltering, are considering new steps to bolster growth. With Congress tied in political knots over whether to take further action to boost the economy, Fed leaders are weighing modest steps that could offer more support for economic activity at a time when their target for short-term interest rates is already near zero.

Niall Ferguson: The US Has 6 Years Before Debt Payments Surpass Defense Spending

Businessinsider.com | Joe Weisenthal | Jul. 6, 2010, 4:51 AM The world’s hottest deficit hawk Niall Ferguson brought his message of fiscal doom & gloom to the Aspen Ideas Festival, where he warned that politicians were lacking urgency over the crisis to come. The Aspen Times reports: And American politicians don’t have a sense of […]

Germany focuses on cutting spending

Germany’s cabinet is poised this week to approve a 2011 budget as part of a four-year programme of public spending cuts meant to serve as an example to other European governments without jeopardising the country’s increasingly robust economic recovery.

Ambrose Evans-Pritchard: Its starting to feel like 1932

People queue for a job fair in New York. The share of the US working-age population with jobs in June fell from 58.7pc to 58.5pc. The ratio was 63pc three years ago. “The economy is still in the gravitational pull of the Great Recession,” said Robert Reich, former US labour secretary. “All the booster rockets for getting us beyond it are failing.”

Dow Repeats Great Depression Pattern: Charts

Dow Repeats Great Depression Pattern: Charts DOW JONES, WALL STREET, GREAT DEPRESSION, TECHNICAL ANALYSIS, MARKETS, STOCKS, DAX, FTSE, FOOTSIE, CNBC.com | 05 Jul 2010 | 05:31 AM ET The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday. […]

Illinois Stops Paying Its Bills, but Can’t Stop Digging Hole

CHICAGO — Even by the standards of this deficit-ridden state, Illinois’s comptroller, Daniel W. Hynes, faces an ugly balance sheet. Precisely how ugly becomes clear when he beckons you into his office to examine his daily briefing memo.

Phony Financial Reform

The huge overhaul bill ignores most big problems and dodges the rest. There is something in the financial-services bill for almost every interest, but the real winners are the cynics who think Congress can’t do anything right. The monster that crawled out of the conference committee on June 25 has about 2,300 pages, and one hostile Republican congressman said it probably has three unintended consequences per page.

Avoiding the Austerity Trap

Recent increases in the federal deficit have made the pundit class tremble, but they aren’t really mysterious. They are, for the most part, a product of the recession, which has reduced tax revenue, justified the bailouts and last year’s stimulus package, and brought unemployment insurance and other “automatic stabilizers” into effect.

The 2011 Tax Tidal Wave + Greenspan’s Bubble with Bill Fleckenstein

The 2011 Tax Tidal Wave + Greenspan’s Bubbles: On this week’s program, Jerry Robinson examines recent statements by President Barack Obama and Senator Nancy Pelosi, and discusses the three-fold tax tidal wave that will strike America on January 1, 2011. Are you prepared for the largest tax increase in American history? It’s just six months […]

The housing bubble hangover, part 2

A booming ‘shadow inventory’ in the housing market is almost certain to bring another wave of falling prices and another round of Federal Reserve stimulus.

Six Months to Go Until The Largest Tax Hikes in History

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families.  These will all expire on January 1, 2011: The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed).  The lowest rate will rise from 10 to 15 percent.  All the rates in between will also rise.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.

Obama and the Fiscal ‘Road to Hell’ – Karl Rove

At last week’s G-20 meeting, President Barack Obama achieved a two-fer. He suffered a significant international defeat, and he increased the chances his party will suffer a major domestic one this fall.
Mr. Obama’s international defeat was self-inflicted. He went to Toronto to press other major nations to do as he has done: Expand government spending, or suffer, in the president’s words, “renewed economic hardship and recession.”

Time runs out for 1.2 million on unemployment

With her unemployment benefits coming to a halt, Miriam Cintron is forced to make a difficult choice between health insurance and daily expenses.

UN report: Abandon the U.S. dollar

A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.
“The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency,” the U.N. World Economic and Social Survey 2010 said.

Consumer Confidence Index plummets to 52.9 in June; Lowest numbers since March

U.S. consumers are increasingly worried about jobs and the economy, the Conference Board said Tuesday, as it reported that its consumer confidence index plummeted to 52.9 in June — the lowest level since March — from a downwardly revised 62.7 in May.

Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.

Secretive and Powerful BIS Annual Report Released

The very fabric and the seams of the financial system are coming apart. Who knows what the timetable is for the implosion of the current monetary system? We are witnessing the greatest wealth transfer in history, and the horrors of the aftermath of this tragedy will not be forgotten for decades.

The Third Depression

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

Derivative Monster: Alive and Kicking Despite Reforms

Anyone who thinks the new financial reform law will save us from the next debt disaster must be dreaming. Here are the facts…

Top Global Bank tells clients to prepare for ‘monster’ money-printing by the Federal Reserve

Entitled “Deflation: Making Sure It Doesn’t Happen Here”, it is a warfare manual for defeating economic slumps by use of extreme monetary stimulus once interest rates have dropped to zero, and implicitly once governments have spent themselves to near bankruptcy.

President could get power to turn off Internet

A US Senate committee has approved a wide-ranging cybersecurity bill that some critics have suggested would give the US president the authority to shut down parts of the Internet during a cyberattack.

G-20 World Leaders Agree to Cutting Deficits in Half by 2013

The wealthiest of the Group of 20 countries said they would halve their government deficits by the year 2013 and “stabilize” their debt loads by 2016, a signal to international markets and domestic political audiences they are taking seriously the need to wean themselves from stimulus spending.

US state budget crises threaten social fabric

The small southern California city of Maywood has hit on a unique solution to its budget crisis. Crushed by the recession and falling tax revenues, the city is disbanding its police force and firing all public sector employees.

Consumer spending, incomes edged up in May

Americans spent a little more in May but not enough to speed along the economic recovery.
Consumer spending rose 0.2 percent last month after no change in April, the Commerce Department said Monday. Incomes rose for the sixth time in seven months, boosting household finances and potentially providing fuel for greater future spending.

Geithner says US can ‘no longer drive global growth’

US Treasury Secretary Timothy Geithner has told the BBC that the world “cannot depend as much on the US as it did in the past”.
He said that other major economies would have to grow more for the global economy to prosper.
He also played down any differences in policy between the US and Europe regarding deficit reduction.
Mr Geithner was speaking in Washington ahead of G8 and G20 meetings this weekend in Toronto.

FOR SALE: Greek Islands

There’s little that shouts “seriously rich” as much as a little island in the sun to call your own. For Sir Richard Branson it is Neckar in the Caribbean, the billionaire Barclay brothers prefer Brecqhou in the Channel Islands, while Aristotle Onassis married Jackie Kennedy on Skorpios, his Greek hideway.

RUSSELL: THIS IS ONE OF THE LARGEST TOPS IN STOCK MARKET HISTORY

Earlier this year, Russell warned that the stock market was once again becoming grossly overvalued despite its relentless new highs.  He has maintained that the bear market never ended and that the world is far too indebted to exit the bear market.  He also believes the bear will not end until all fiat currencies have failed. 

New home sales plunge to lowest level on record

Sales collapsed a record 33 percent to an annual pace of 300,000 last month from April, less than the median estimate of economists surveyed by Bloomberg News and the fewest in data going back to 1963, figures from the Commerce Department showed today in Washington. Demand in prior months was revised down.

Merrill Lynch: "Gold Will Hit $1,400/oz by 2012"

Merrill Lynch metals analysts maintain gold will hit a US$1,500 per ounce target by the end of next year as investor demand pushes gold prices higher.
In research published Monday, analysts Michael Widmer, Francisco Blanch, and Alex Tonks are predicting average gold price forecasts of US$1,200/oz this year, $1,350/oz in 2011, and $1,400/oz in 2012, up from $1110/oz, $1179/oz and $1109/oz. respectively.

Asian millionaires overtake Europeans

The net wealth of Asian millionaires has eclipsed that of rich Europeans for the first time, largely because of the relative health of stock markets in Hong Kong, India and China last year, according to a new survey.

Is U.S. Now On Slippery Slope To Tyranny? – Thomas Sowell

For as long as I can remember I have looked forward to reading Thomas Sowell’s columns for his acute insights. He is a former economics professor and has written some great books, including one called: Basic Economics. In my opinion, it is a must-read for anyone who wants to understand the way the U.S. economy works – and doesn’t work.

Bank failure is 83rd in ’10; pace more than double last year’s

The 83 closures so far this year is more than double the pace set in all of 2009, which was itself a brisk year for shutdowns. By this time last year, regulators had closed 40 banks. The pace has accelerated as banks’ losses mount on loans made for commercial property and development.

China to Overtake U.S. as World’s Top Manufacturer

The US remained the world’s biggest manufacturing nation by output last year, but is poised to relinquish this slot in 2011 to China – thus ending a 110-year run as the number one country in factory production.