House Attacks Fed, Treasury: Panel Votes for Tighter Political Rein on Central Bank; Some Call for Geithner to Quit - http://online.wsj.com/article/SB125864421370955721.html
(VIDEO) Federve Reserve Under Scrutiny; Is an Audit Imminent? - http://www.marketwatch.com/video/asset/am-report-ron-paul-vs-the-fed/775F1CC7-EF72-4BBE-B56C-B72C68F68C62
Trichet: Banks Must Prepare for End to Cheap Central Bank Cash – http://moneynews.newsmax.com/headlines/trichet_banks_support/2009/11/20/288936.html
Now, a new bailout for the U.S. Postal Service? – http://www.cbsnews.com/stories/2009/11/19/politics/main5711797.shtml
Roubini: More Stimulus the Only Hope – http://moneynews.newsmax.com/streettalk/roubini_stimulus_/2009/11/19/288315.html
Mayors Sound Alarm Over Drop in City Revenues – http://online.wsj.com/article/SB125866320178356259.html?mod=WSJ_hpp_MIDDLTopStories
California in Crisis: UCLA Hikes Tuition 32%; Protests and Near Riots – http://www.breitbart.com/article.php?id=D9C2OPP80&show_article=1
The Return of Plastic: After Months of Declines, credit-card balances move higher – http://www.marketwatch.com/story/credit-card-balances-rise-as-holidays-approach-2009-11-18?link=kiosk
Top Euro Bank Prepares Clients for ‘Global Economic Collapse’ – http://www.telegraph.co.uk/finance/economics/6599281/Societe-Generale-tells-clients-how-to-prepare-for-global-collapse.html
DeLong: Odds Increasing That We’re Headed For A Great Depression – http://www.businessinsider.com/economist-now-theres-a-5-chance-were-headed-for-the-great-depression-2009-11
China shakes the gold industry: Rumored to be interested in major U.S. gold miner – http://www.businessweek.com/magazine/content/09_47/c4156insidewal295963.htm?campaign_id=rss_topStories
Billionaire Investor John Paulson Makes Big New Bet on Gold, says Bull Run Just Beginning – http://commoditytradealert.com/blog/?p=3886
FHA Goes Broke… – http://moneynews.newsmax.com/economy/fha_fund_nearly_broke/2009/11/17/287356.html
UK borrowing spirals as tax receipts dwindle – http://www.telegraph.co.uk/finance/economics/6604446/UK-borrowing-spirals-as-tax-receipts-dwindle.html
Syria suspected of concealing nuclear activity – http://www.wtop.com/?nid=778&sid=1816869
(One of the major economic trends that I have been watching for years is the slow move towards political and economic integration in the Middle East. It is interesting to see integration happening on a global scale. The recent formation of the European Union brought nations together that were at one time hostile enemies. In Asia, there is talk of economic and political integration. This may take the form of a coming “Asian Union.” Similarly, Africa has talked about the economic benefits of an “African Union.” But the one “union” that will be the most prophetic in nature with be the “Middle Eastern Union.” I believe that we will witness such a union in our lifetime. And if one thing can bring these Middle Eastern nation together, it is economics. I believe that the planned single currency in the Gulf region is the first step towards this coming Middle Eastern Union. – Jerry Robinson)
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Gulf states have set the start of next year to launch the single currency, but recently there have been increasing signals that the target date is unrealistic.
Earlier this month, the governor of the Saudi Arabian Monetary Agency, or central bank, Mohammad al-Jasser said the launch of the currency was set to be delayed.
Saudi Arabia, Kuwait, Bahrain and Qatar, members of the Gulf Cooperation Council (GCC), signed a pact in June to create a joint monetary council, which would later become a GCC central bank.
The remaining two GCC members, the United Arab Emirates and Oman, have refused to sign up and withdrawn from the project.
The UAE was upset at the selection of the Saudi capital Riyadh to host the future GCC central bank, while Oman pulled out saying it was unable to meet the preconditions.
Kuwaiti Foreign Minister Sheikh Mohammad al-Sabah told parliament the proposed single currency may not necessarily be pegged to another currency.
“It might be a currency or a basket of currencies,” Sheikh Mohammad said, adding: “This issue will be discussed between the Gulf states.”
All GCC currencies are pegged to the dollar except for the dinar of Kuwait, which in May 2007 dropped the dollar for a basket of currencies to fight soaring inflation.
During Tuesday’s parliamentary debate, a number of MPs expressed concern about the impact of a GCC single currency on the dinar and domestic economy.
The vote on the GCC monetary union pact was then postponed until December 8 in order to have additional details on the agreement.
Kuwait is due to host the annual GCC summit on December 14, Sheikh Mohammad said.
Saudi Arabia has already ratified the pact while the three other states are expected to do so before the end of the year.
GCC states have agreed on a number of technical criteria for the monetary union but a number of other issues remains unresolved.
IMF: World ‘can no longer rely on dollar’ - http://www.businessday.co.za/articles/Content.aspx?id=87402
Dollar Drops, Gold Hits New Record - http://www.bloomberg.com/apps/news?pid=20601087&sid=aES8ENnm09ZU
Mauritius Buys IMF Gold, Follows India as Metal Soars – http://www.bloomberg.com/apps/news?pid=20601087&sid=a_9ioLuRtQyk&pos=6
Jim Rogers: There Is No Gold Bubble! – http://www.businessinsider.com/jim-rogers-there-is-no-gold-bubble-2009-11
Silver – About to Explode? – http://news.silverseek.com/SilverSeek/1258468717.php
Gun sales shoot up amid America’s fear of rising crime and terrorism – http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6917828.ece
Warren Buffett Bets America’s Future Will Be Poor, Crowded, And Dirty – http://www.businessinsider.com/warren-buffett-bets-americas-future-will-be-poor-crowded-and-dirty-2009-11
More Americans Going Hungry – http://www.washingtonpost.com/wp-dyn/content/article/2009/11/16/AR2009111601598.html?wpisrc=newsletter
Roubini: ‘The worst is yet to come’ – http://www.nydailynews.com/opinions/2009/11/15/2009-11-15_the_worst_is_yet_to_come_unemployed_americans_should_hunker_down_for_more_job_lo.html
National Debt Reaches $12 Trillion – http://www.treasurydirect.gov/NP/BPDLogin?application=np
U.S. Treasury Confident Congress Will Increase Debt Ceiling – http://www.bloomberg.com/apps/news?pid=20601074&sid=aWXDnpFProiY
Texas Governor Says U.S. Heading Towards Socialism – http://www.statesman.com/blogs/content/shared-gen/blogs/austin/firstreading/entries/2009/11/12/_perry_midland_find_more.html
Trade Deficit in U.S. Increases by Most Since 1999 – http://www.bloomberg.com/apps/news?pid=20601087&sid=aN1mKmvVAZp4
Top Republican says White House hiding info on Fort Hood – http://thehill.com/blogs/blog-briefing-room/news/67341-top-republican-says-white-house-hiding-info-on-ft-hood
(With everyone focused upon the impact that the economic crisis is having on the nation as a whole, we sometimes forget how parts of that “whole” are being affected as well. Nearly every state in the union is operating with a budget deficit in 2009. Around 28 states are facing budget deficits of over $1 billion. This is an unprecedented time for our nation as the consumption-driven economy which requires ever increasing debt has turned against us. How is your state doing amid this crisis? – JR)
By JUDY LIN, Associated Press Writer
Wednesday, November 11, 2009
(11-11) 18:21 PST Sacramento, Calif. (AP) –
In Arizona, the budget has grown so gloomy that lawmakers are considering mortgaging Capitol buildings. In Michigan, state officials dealing with the nation’s highest unemployment rate are slashing spending on schools and health care.
Drastic financial remedies are no longer limited to California, where a historic budget crisis earlier this year grew so bad that state agencies issued IOUs to pay bills.
A study released Wednesday warned that at least nine other big states are also barreling toward economic disaster, raising the likelihood of higher taxes, more government layoffs and deep cuts in services.
The report by the Pew Center on the States found that Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin are also at grave risk, although Wisconsin officials disputed the findings. Double-digit budget gaps, rising unemployment, high foreclosure rates and built-in budget constraints are the key reasons.
“While California often takes the spotlight, other states are facing hardships just as daunting,” said Susan Urahn, managing director of the Washington, D.C.-based center. “Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers.”
The analysis, “Beyond California: States in Fiscal Peril,” urged lawmakers and governors in those states to take quick action to head off a wider catastrophe. The 10 states account for more than one-third of the nation’s population and economic output, according to the report.
Historically, states have their worst tax revenue year soon after a national recession ends. At the same time, higher joblessness and underemployment mean more people need government-sponsored health care and social safety-net programs, further taxing state services.
California leads the most vulnerable states identified by the report, which describes it as having poor money-management practices. Since February, California has made nearly $60 billion in budget adjustments in the form of cuts to education and social service programs, temporary tax hikes, one-time gimmicks and stimulus spending, according to the Legislative Analyst’s Office.
Many of those fixes are not expected to last. The state’s temporary tax increases will begin to expire at the end of 2010, while federal stimulus spending will begin to run out a year after that.
Gov. Arnold Schwarzenegger estimates California will run a deficit of $12.4 billion to $14.4 billion when he releases his next spending plan in January. The governor warned that the toughest cuts are ahead.
“I think that we are not out of the woods yet,” Schwarzenegger said this week.
At the same time, the Legislature is hamstrung by requirements that budget bills and tax increases be passed with a two-thirds majority, a mandate that the report labeled “a recipe for gridlock.”
The Pew report was based on data available as of July 31 and scored all 50 states based on revenue changes, unemployment, foreclosures and budget requirements. It also gave them grades. California and Rhode Island scored worst with D-pluses, then New Jersey and Illinois with C-minuses.
In reviewing why some states are suffering more than others, Pew found that the 10 states tend to rely heavily on one type of industry, have a history of persistent budget shortfalls or face legal constraints making it extra difficult to implement major changes, such as tax increases.
Many require a supermajority vote for passing tax increases or budget bills.
Wisconsin officials issued a statement late Wednesday saying the Pew report was inaccurate. Wisconsin Department of Administration Secretary Michael Morgan said the state has balanced its budget by cutting spending and raising revenue. It projects a $270 million budget surplus for the period ending July 1, 2011, Morgan said in his statement.
Several state legislatures have been unable to enact long-term fixes. Instead, they asked voters or governors to make the call, or used accounting gimmicks to put off the hard choices until later.
For example:
_ Arizona lawmakers relied on one-time fixes to balance recent budgets as the state’s home foreclosure rate surpassed California’s and the nationwide average. Among the many ideas being explored by the state are a plan to mortgage state buildings, then rent the property until the state regains ownership at the end of the contract.
_ Michigan, where two of the Detroit Three automakers filed for bankruptcy protection this year, continues to offer tax incentives even as they take a toll on the state’s pocketbook, leading to declining tax revenue. According to the Pew study, Michigan offered $6.3 billion more in total tax exemptions, credits and deductions than it actually collected in taxes in 2008.
_ Illinois, which has run deficits every year since 2001, is facing an $11.7 billion budget gap for its next fiscal year, beginning in July, according to the Center on Budget and Policy Priorities. Pew’s Government Performance Project ranked Illinois behind only California and Rhode Island for its lack of fiscal management on paying medical bills and pension liabilities.
_ With Florida facing a shrinking population for the first time since World War II, Republican Gov. Charlie Crist and the GOP-controlled Legislature balanced a $5.9 billion shortfall with cuts, federal stimulus money and tax hikes, including a $1-a-pack tax increase on cigarettes. But the future remains uncertain.
“Florida continues to face the same challenges as last year, including a very austere budgetary environment,” said Rep. David Rivera, a Miami Republican who chairs both of the Florida House’s two appropriations councils.
Original Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/11/11/financial/f100430S51.DTL&type=printable
Barrick shuts hedge book as world gold supply runs out – http://www.telegraph.co.uk/finance/newsbysector/industry/mining/6546579/Barrick-shuts-hedge-book-as-world-gold-supply-runs-out.html
Central Banks Join a New Gold Rush, Becoming Net Buyers of Gold, Unloading Fiat Currencies – http://commoditytradealert.com/blog/?p=3745
The inflation time bomb – http://blogs.reuters.com/rolfe-winkler/2009/11/10/the-inflation-time-bomb/
Home-Purchase Index in U.S. Plunges to Lowest Level Since 2000 – http://www.bloomberg.com/apps/news?pid=20601087&sid=a1_pyNFw6mbg&pos=5
You’re Retired. Should You Ditch Your Life Insurance Policy? – http://finance.yahoo.com/focus-retirement/article/108136/youre-retired-should-you-ditch-your-life-insurance-policy;_ylt=Av8996ajM0G7ZDxgehNLm_a7YWsA;_ylu=X3oDMTE1aGhsazdkBHBvcwMyBHNlYwNmaWRlbGl0eUZQBHNsawNzaG91bGR5b3VkaXQ-?mod=fidelity-livingretirement
China Signals That It May Allow Currency to Rise Against Dollar – http://www.cnbc.com/id/33850971
Boomers in Denial About Retirement Savings – http://www.cnbc.com/id/33700371
UK: We’ve no choice but to keep inflating – http://www.independent.co.uk/opinion/commentators/hamish-mcrae/hamish-mcrae-weve-no-choice-but-to-keep-inflating-1818168.html
REPORT: Oil reserves data being fudged by U.S. – http://www.zeenews.com/news577659.html
Ahmadinejad: ‘Obama must choose – Israel or Iran’ – http://www.jpost.com/servlet/Satellite?cid=1257770037656&pagename=JPost%2FJPArticle%2FShowFull
Vatican looks to heavens for signs of alien life – http://www.google.com/hostednews/ap/article/ALeqM5hf92aHEwYT87J1XPP4JrIusKBT-AD9BSTO1G1
China October auto sales up 72 percent on stimulus – http://finance.yahoo.com/news/China-October-auto-sales-up-apf-514815824.html;_ylt=Ao4jjrjmCwawnEDXlrGvlDq7YWsA;_ylu=X3oDMTE2cmE1azBiBHBvcwMxMQRzZWMDdG9wU3RvcmllcwRzbGsDY2hpbmFvY3RvYmVy?x=0&sec=topStories&pos=9&asset=&ccode=
Gold price hits record high as dollar wanes – http://www.breitbart.com/article.php?id=CNG.38d1a363d5a9d9eb7392a4a7058ff210.1d1&show_article=1
Gold Bars Selling Like Hotcakes at Harrods – http://finance.yahoo.com/techticker/article/368169/Gold-Bars-Selling-Like-Hotcakes-at-Harrods;_ylt=AiyVjAYWGG73KlVfVf0XGLDuba9_;_ylu=X3oDMTFnbms3cTd1BHBvcwMyBHNlYwNjb250ZXh0dWFsLXRlY2h0aWNrZXIEc2xrA2dvbGRiYXJzc2VsbA–
Avoid foreclosure: Rent your own home – http://money.cnn.com/2009/11/05/real_estate/deed_to_lease/
More walk away from homes, mortgages – http://www.usatoday.com/money/economy/housing/2009-11-02-voluntary-foreclosure_N.htm
Public Pensions Face Ugly Choices – http://www.forbes.com/2009/11/06/pension-fund-bankruptcy-bailout-personal-finance-uglychoices.html
Chavez Says Venezuela to Prepare for War with U.S. as Deterrent – http://www.bloomberg.com/apps/news?pid=20601087&sid=aZuAU4StKAQY
Israel planning cell phone rocket alerts – http://www.breitbart.com/article.php?id=CNG.b24cd01475bfb980ed72d30ed4a4cd69.101&show_article=1
Unemployment rate hits 10.2% – http://www.marketwatch.com/story/unemployment-rate-hits-102-in-october-2009-11-06
The Dollar in Danger – http://www.time.com/time/magazine/article/0,9171,1934991-1,00.html
Gold Prices Hit $1,100 – http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCxnxTfqhvG8
Gold bullion surging in all currencies – http://www.ritholtz.com/blog/2009/11/gold-bullion-surging-in-all-currencies/
119 Bank Failures So Far in 2009 – http://finance.yahoo.com/news/Small-banks-in-Ga-Mich-Minn-apf-3282864371.html?x=0&.v=9
The 25 Billion Dollar Secret: The NY Fed, Goldman & The AIG Cover-Up – http://www.businessinsider.com/the-25-billion-dollar-secret-the-ny-fed-goldman-and-the-aig-cover-up-2009-11
Report: 237 millionaires in Congress (That’s 44% of Congress) - http://www.politico.com/news/stories/1109/29235.html
