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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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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Content By: The Coming Depression Editorial Staff (dates cited below)
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flushing money down the toilet

“”The Fed’s best hope seems to be trying to convince investors that short term interest rates are going to remain lower for longer than they currently expect or that inflation is going to be higher. The most likely outcome is that the Fed will buy $500 billion of Treasury securities over the next six months and make those purchases conditional on how inflation and the unemployment rate evolve,” economists said.”

The Fed Reserve Chairman et al in the FOMC meetings hinted at a possible repurchase of US bonds/treasury bills (treasury issued securities used to raise funds for fiscal policy). Thus what is hinted at is: there is an issuance of treasury debt, and to bring the fed funds rate down (a rate charged to banks for holding deposits at the Fed reserve), the Fed reserve is to buy these securities to make the surplus bonds on the market smaller in size, thus driving down the Fed funds rate, and thus influences the prime rate (the rate at which prime lenders are borrowing at)..

How ironic that the major holders of US treasuries such as:

1. China, 2. Japan. 3. Korea 4.and the Middle East are lending the US money at a high rate of interest to finance their burgeoning debt load… China has announced that they are to wean their purchase of US treasuries at a time when it is needed most.. So in essence, it can be seen as the using Chinese et al.. borrowed money to stimulate the US economy, and what will be the net outcome? MORE GOV’T DEBT

There is one profound flaw with the idea of spending your way out of debt. No government will want to be the one in power at the time the debt has to be paid down, because they know it will be an election issue. Therefore, all that will happen is each successive government will keep pushing the deficit forward. It may avoid a prolonged recession or even a depression, but it still robs the future of funding. So the debt is spread over twenty years, that’s still twenty years of debt reduction that could have been avoided, had the developed nations not grossly overspent to begin with.

Another profound flaw with the world economy right now is the idea that Germany will be okay if it can sell to China. China will be okay as long as it keeps the yuan down and exports up. But the US needs China to devalue the yuan in order to increase its own exports. China needs to sell to the US and needs to buy from Canada. Australia depends on China for exports, and on and on and on. Back in the 1930′s the world economic system was more simple. Today it is mega complicated. You can push this up, but that goes down, so you push over here, and something drops over there. It’s like there are sixteen holes in the dyke and you only have ten fingers and a nose.

The Fed and “Plunge Protection Team”: Are They Manipulating Stocks?

If you think back to that time, you may remember that the Federal Reserve and U.S. government took many aggressive steps to help stop the collapse. Every time they would announce a new intervention, the market would cheer. Result? Prechter’s chart gives an unequivocal answer:

slope of hope

As you can see, announcements of bailouts, unlimited credit, bans on short sales, etc., were powerless against the biggest stock market collapse in 76 years. The DJIA kept sliding. It didn’t stop until March 6, 2009 — after it had slipped below 6,500.

So: Is the Fed and the “Plunge Protection Team” engaged in market manipulation? You can browse EWI’s Message Board for some answers, but one thing is clear: When stocks were crashing two years ago, few dared to suggest that the Fed was in the saddle. Bob Prechter puts it best:

“When markets go up, the Fed seems to be in control; when they go down, it seems out of control. But the control aspect is an illusion.”

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Learn why you should think independently rather than relying on misleading investment commentary and advice that passes as common wisdom. Just like the myth that government intervention can stop a stock market crash, Market Myths Exposed uncovers other important myths about diversifying your portfolio, the safety of your bank deposits, earnings reports, inflation and deflation, and more! Protect your financial future and change the way you view your investments forever! Learn more, and get your free eBook here.

QE2 could possibly be meaningless: Capital Economics By Amulya Nagaraj

The U.S. Federal Reserve might announce another round of quantitative easing (QE) on Wednesday, but the it might not actually make a difference, Capital Economics said in a note.

“The most likely outcome is that the Fed will buy $500 billion of Treasury securities over the next six months and make those purchases conditional on how inflation and the unemployment rate evolve,” economists said.

However, this might not actually be as effective given that the fiscal stimulus is waning, the boost from inventories is also fading and pent up investment demand is slowing, the research firm added.

Markets have been boosted by the news about a second round of easing. However, the dollar has been falling against other currencies on the news that there would be more greenbacks floating in the market.

As the effect of the fiscal stimulus fades, the economic growth has slowed. While this made a second round of stimulus inevitable, it is easy to see how the QE2 would give way to more such stimulus, Capital Economics said.

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  2. We’re in a bond market bubble“Depending on the size of the asset purchasing program during the November 3rd, 2010 FOMC meeting, a large QE2 could push bond yields higher and push prices lower over the...
  3. NIA sees massive food inflation in near future“There might not have been a second round of quantitative easing, if Federal Reserve Chairman Ben Bernanke shopped at Walmart. A new pricing survey of products sold at the world’s...
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  5. General motors didn’t repay bailout money as claimedWASHINGTON (CN) – General Motors repaid TARP loans with other bailout funds instead of company earnings, Republican Sen. Chuck Grassley claimed Thursday in a letter to Treasury Secretary Tim Geithner....
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