Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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Real reason for electricity blackouts hitting southern US

Real reason for electricity blackouts hitting southern US

“Large oil companies have for a decade artificially shorted the gasoline market to drive up prices,” said FTCR president Jamie Court. “Oil companies know they can make more money by making less gasoline.” The following article was written by Paul Joseph Watson. He is t

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

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Canadian government admits recovery never happened

Canadian government admits recovery never happened

“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. "Most of us were shaking our heads in disbelief early last year w

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How Western society is brainwashed and crumbling

How Western society is brainwashed and crumbling

"The cultural embrace of illusion, and the celebrity culture that has risen up around it, have accompanied a growing system of casino capitalism, with its complicated and unregulated deals of turning debt into magical assets, to create fictional wealth for us, and vast wealth f

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Will we see double digit interest rates from the 1980s?

Will we see double digit interest rates from the 1980s?

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." -- Thomas Jefferson Spending is

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Greenspan: credit crunch “by far the greatest financial crisis”

Greenspan: credit crunch by far the greatest financial crisis

Greenspan said that while the economy was in worse shape in the Great Depression, the recent financial crisis was potentially more harmful than that in the 1930s because “never had short-term credit literally withdrawn.” Greenspan just said that the current credit crunch

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Content By: The Coming Depression Editorial Staff (dates cited below)
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chinese factory worker

“The day they decide to float their currency you are going to get huge reversals of financial flows around the globe, which will affect all exchange rates, that’s why I compared it to a tsunami,” Costello said.

There’s nothing strange about wanting China to bear its share of a burden that the Western world is already bearing more than its share of. If the Chinese yuan were to go up the way it would naturally, then the Canadian dollar wouldn’t go up as much. However, hopes should not be pinned on China doing what we want; instead, we should stop being afraid of the “protectionism” bogeyman, and return Canada to being a country with steel mills and factories that employ ordinary working Canadians at union wages. Foreign trade should be something that is carefully managed to benefit all Canadians, instead of being allowed to get out of control and take jobs away.

It is quite obvious now that the world’s major trading powers, China and the USA, are currently engaged in a trade and financial war. They have been in a tug of war for the past 8 years (2001) since China entered into the world trade organization — something that should never had happened because of their total incompatability with democratic fundamentals built up in the Western world in the past 100 years– but was allowed to happen under the auspices of the Bush administration for purposes of “free trade.” It is also obvious that the tragic events of 9/11 were used as a smoke screen to cover up and distract people when China entered into the World Trade Organization. Yes, China entering the WTO was that big of a deal.

Everyone knows that communist China cheats by “artificially” keeping the yuan low. That’s a fact. And guess what? They follow a “communist” system. If everyone is so “sensitive” about calling them on that fact then why don’t they renounce their love of Mao and communism and change their name from the People’s Republic of China to something else?

Canada hurt by China’s fixed yuan: Carney
Says rising loonie weighs on recovery
Last Updated: Thursday, November 19, 2009 The Canadian Press

Bank of Canada governor Mark Carney says Canada is paying the price for China’s intransigence in moving to a flexible currency exchange.

The central banker says the world’s key economic powers need to co-operate in order to avoid future crises and to grow out of the current one.

If countries delay adjustment, he says, all countries suffer and growing strains could spur a disastrous spiral of protectionism both in trade and finance.

Carney says the immediate impact on China’s hoarding of foreign exchange reserves is that other countries, including Canada, pay the price through an appreciating currency versus the U.S. dollar.

In Canada, he says, the loonie’s rise will weigh down growth, estimating that the recent surge will wipe out all the positive developments from July in the long term.

The devaluation of the U.S. dollar has ignited talk of an alternative to the global reserve currency, but Carney says although that may come to pass, it will not alleviate the global imbalance problem. The solution, he says, is that all countries accept the responsibility that their domestic policies can damage other countries.

The Great US-China Romance
By Bill Bonner @ DailyReckoning

“You think you’ve got trouble,” Premier Hu Jintao might have replied to Mr. Obama. “Did you know that there are something like 200 million Chinese who still get by on as little as a dollar a day? Let’s face facts. You’re sitting there in Washington, comfortably talking about how much free health care and unemployment benefits to give the American people. We don’t have the time…or the money for those kinds of things. Too many Chinese people. They don’t earn enough to afford the kind of cradle-to-grave bribes you give your people. We have to keep them working; there’s no other way.

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