US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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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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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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Content By: The Coming Depression Editorial Staff (dates cited below)
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cash for clunkers
By Mira Oberman (AFP)

CHICAGO — US auto sales plunged 22.7 percent in September after the end of the popular “Cash for Clunkers” program left cautious consumers with few reasons to visit dealerships, industry data showed Thursday.

But the Detroit Three managed to claw back some of the share they had lost. Asian automakers had captured more than half the US market for the first time last month thanks to that loss.

The Asian share slipped to 46.5 percent from 52.3 percent in August but was still 7.6 points higher than September 2008, according to Autodata.
General Motors, Ford and Chrysler held 43.8 percent of the market in September, up three points from August, but down 8.5 points from a year ago.

European automakers increased their share to 9.6 percent from 6.9 percent in August and 7.8 percent in September 2008.

Automakers were mixed in their outlook for the rest of the year after total sales fell to a seasonally adjusted annualized rate of 9.22 million vehicles from 14.09 in August and 12.57 in September 2008.

“We believe the remainder of 2009 will continue to be a challenge for the US automotive market,” said Peter Fong, lead executive for Chrysler’s sales organization.

“Credit markets have thawed slightly, but still remain tight, and consumer confidence, as we saw in September, is tenuous.”
Chrysler posted a 42 percent drop in sales to 62,197 vehicles as its share fell to 8.3 percent from 11.1 percent a year earlier.

Ford sales analyst George Pipas said the automaker expects industry sales to improve in the fourth quarter from the weak performance earlier this year but cautioned that “it’s going to be pretty slow going.”

“For many consumers, it won’t feel like the recession is over, even though technically it may be,” Pipas said.

Ford’s sales fell 5.8 percent to 109,525 vehicles, but it managed to post its first quarterly sales increase in four years thanks to a 17 percent spike in August and a two percent gain in July.

The only major US automaker to escape bankruptcy, Ford also increased its market share by 14.7 percent from 12.1 percent in September 2009, which it said marks the 11th time in the past 12 months it gained retail market share.

Toyota, which saw sales fall an unadjusted 12.6 percent to 126,015 vehicles but still managed to increase its share by 1.9 points to 16.9 percent, was more optimistic.
“Improving economic conditions and the (Clunkers) program led to a significant increase for the industry in the third quarter over the first half-year,” said Don Esmond, vice president of automotive operations for Toyota Motor Sales USA.
“Moving into the fourth quarter, we expect continued momentum will close the year on a bright note.”

The three-billion-dollar Cash for Clunkers initiative sparked nearly 700,000 auto sales before it expired in August by offering owners of old gasoline guzzlers up to 4,500 dollars toward a new, more fuel-efficient vehicle.

“We believe consumer traffic at dealerships evaporated in the absence of the incentive program,” wrote Standard & Poor’s equity research analyst Efraim Levy.
“However, we expect the September lull to be temporary, as the comparisons get easier and we see the economy improving.”

GM said weak consumer confidence and extremely low inventory also hit sales, which dropped 45 percent to 156,673 vehicles.

The company’s share fell to 20.8 percent from 29.1 percent in September 2008, but was nonetheless up 1.4 points from August’s dismal performance, according to Autodata.

Korea’s Hyundai and Kia continued to post dramatic gains.
Hyundai’s sales jumped 27.2 percent at 31,511 as its share rose to 4.2 percent from 2.6 percent a year ago. Kia’s sales rose 24.4 percent to 21,623 as its share increased to 2.9 percent from 1.8 percent in September 2008.

Original full article is hosted at AFP

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