Helping share Absolute Data from Toronto
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By The Solari Team
There are so many irreconcilable issues in the federal budget, and there are many pieces and aspects to understanding the fiscal cliff policy. If you’d like to take a deeper look or or learn steps you can take to become more independent of government disparity you can read more […]
Vía The Solari Report Blog http://solari.com/blog/federal-budget/
Followng Pope Francis’ demand that the Vatican Bank review its procedures, Reuters reports that the bank is likely to close all accounts held by foreign embassies, following concerns about large cash deposits and withdrawals by the missions of Iran, Iraq and Indonesia, according to people with knowledge of the situation. The private bank IOR has around EUR7.1 billion in assets but is concerned it could be “an unwitting vehicle for money laundering and other illicit finances.”
The Vatican bank is likely to close all accounts held by foreign embassies, following concerns about large cash deposits and withdrawals by the missions of Iran, Iraq and Indonesia, according to people with knowledge of the situation.
The Vatican’s financial watchdog, which examined the transactions in 2011, believed the embassies’ justifications for the transactions were too vague or disproportionate to the amounts — up to 500,000 euros at a time — these people said. In one case, a large cash withdrawal was said to be for “refurbishment”, one person added.
Now the bank and the watchdog want to reduce the possibility that the Institute for Religious Works (IOR), as the bank is called, could be an unwitting vehicle for money laundering and other illicit finances.
Four people with knowledge of the matter said the closure of the accounts was likely to be a key recommendation of a broad review that Pope Francis has ordered of the bank, whose scandal-tainted history has long been an embarrassment for the Holy See.
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The IOR is a private bank – currently with about 7.1 billion euros in assets under management – whose stated goal is to hold and manage funds for religious orders of priests and nuns, Catholic charities, Vatican employees, and other Catholic institutions. But the number of account holders has swelled to 19,000 over the years and diversified beyond the original categories with the right to hold accounts.
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The bank is also coming clean on possible illicit financial activities. The Vatican has said it detected six possible attempts to use the IOR to launder money last year, and at least seven in the first half of this year. In one case, a prelate who had close ties to the IOR was arrested in June on suspicion of plotting to smuggle 20 million euros in cash into Italy from Switzerland to give to rich friends in southern Italy. The prelate, who will be tried in December, says he was not acting for personal gain.
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via Zero Hedge Read More Here..
With a government shutdown looming, our 24/7 media has been quick to throw around terms like “catastrophic” and “devastating,” so what would a government shutdown actually mean?
No matter what, every federal office in D.C. won’t be padlocked tomorrow.
The Heritage Foundation takes a look at what will occur:
If President Barack Obama “shuts down” the government by vetoing a continuing resolution (CR) that funds all government operations with the exception of Obamacare, or the Senate fails to pass such a CR, crucial services will continue without interruption. That includes all services essential for national security and public safety—such as the military and law enforcement—as well as mandatory government payments such as Social Security and veterans’ benefits.
The key fact, as the U.S. Department of Justice (DOJ) itself has said, is that when there is a short-term lapse in appropriations, “the federal Government will not be truly ‘shut down’…because Congress has itself provided that some activities of Government should continue.” In fact, any claims that not passing a CR will result in a “shutting down” of the government “is an entirely inaccurate description” according to the DOJ.[1]
The post What happens if the government shuts down? appeared first on Campaign for Liberty.
Vía Campaign for Liberty » National Blog http://www.campaignforliberty.org/national-blog/happens-government-shuts/
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Iraqi woman has filed case against Iraqi War Con Men. Should this case go through or should we accept the immunity given to them by Obama?
Vía Veterans Today http://www.veteranstoday.com/2013/09/30/271304/?utm_source=rss&utm_medium=rss&utm_campaign=271304
Submitted by Brandon Smith of Alt-Market blog,
There is a considerable amount of debate in alternative economic circles as to whether a federal government shutdown would be a “good thing” or a “bad thing”. Frankly, even I am partially conflicted. I love to read mainstream news stories about how a shutdown in the capital would be “horrible” because Barack Obama might have to reduce the White House cleaning staff and wash his own laundry:
It's about time that sellout bastard did something to clean up his own act. I also love the idea of the federal government out of the picture and removed from the U.S. dynamic. Americans need to learn again how to live without the nanny state, even if only for a few weeks, and what better way than to go cold turkey. I can hear the tortured sobs of the socialists now, crying for their SNAP cards and low grade government healthcare. It's like…beautiful music…
That said, as much as centralized government needs to be erased from the face of the planet, there are, indeed, consequences that must be dealt with. It is foolish to believe otherwise. No social system, and I mean NO SOCIAL SYSTEM, changes without pain to the population. I am not among those that cheer a federal shutdown, because I understand that the only people to ultimately feel suffering will be average citizens, not the establishment itself. The sheeple may be ignorant and blind, but no one deserves the kind of unmitigated hellfire that could rain down upon our country if a shutdown continues for an extended period of time. Call me a humanitarian…
As I write this, mainstream media projections estimate a 90% chance of government shutdown by midnight on September 30th. Though technically, government funds will not run out until October 17th:
http://www.usatoday.com/story/news/politics/2013/09/25/treasury-debt-limit-october-17/2867471/
We have dealt with this kind of talk before over the past few years, and it's interesting to see the kind of cynicism that has developed over the idea of a shutdown event. After all, the last time a government shutdown occurred was at the end of 1995, lasting only a couple of weeks into 1996. The GOP has folded so many times over the U.S. budget and debt ceiling that most of the public expects they will obviously do it again. It is certainly possible that the Republicans will roll over, however, I am not so sure of that this time around. Why? Not because Obamacare is on the table. Obamacare is just a distraction. No, I'm far more interested in the circumstances surrounding the U.S. dollar.
Obamacare is designed to fail. Anyone with any financial or mathematical sense could look at the real national debt and deficit projections of the U.S. and understand that there is no money and never will be enough money to fund universal healthcare. The GOP could simply let the program take effect, sit back, and watch it crash and burn over the next three to five years. This would entail, though, watching the whole of our economy crash and burn with it.
What we have developing in front of us is the recipe for a new false paradigm. Already, the MSM is discussing the possibility of debt default and who will be responsible under such circumstances. Not surprisingly “Tea Party” conservatives have been named the primary culprits if a shutdown goes south; even former Democratic president Bill Clinton is getting in on the blame game:
All the bickering over Obamacare is fascinating, I'm sure, but lets set the Affordable Care Act aside for a moment and look at the bigger and more important picture. The private Federal Reserve Bank has just announced to much surprise a complete reversal on its suggested QE “taper” measures, resulting in a shocked and confused marketplace. If the U.S. fiscal system is stable and sound, as the Fed has been suggesting for the past year, then why continue stimulus measures at all? Could it be that most if not all positive economic numbers released by the Fed and the Labor Department are actually fake, and that investors have been duped into assuming overall growth when America is actually in an accelerated decline? Wouldn't that be a high speed excrement storm straight out of left field!
The first day rally over the Fed announcement faded quickly, resulting in a slow bleed of the Dow ever since. The magic of Fed stimulus is wearing off, and the investment world is not happy. If I were a member of the Federal Reserve Bank, I suppose I would appreciate a large scale distraction designed to take attention away from me and my elitist club-mates as the primary culprits behind the greatest currency implosion in the history of the world.
Sadly, a government shutdown is sizable threat to the American financial system, and few people seem to get it. Perhaps because the expectation is that any shutdown would only be a short term concern. And, this assumption might be correct. But, if a shutdown takes place, and, if “gridlock” continues for an extended period of time, I have little doubt that the U.S economy will experience renewed crisis. Here's why:
Exponential Debt
Obamacare only tops a long list of already existing “unfunded liabilities” (otherwise known as entitlement programs). These programs are not counted in the government's official calculations of national debt or deficit spending, but they cost taxpayers money all the same. True deficit costs and national debt costs expand every year without fail. If the debt ceiling does not rise in accordance with this exponential debt, a default is inevitable. No amount of increased taxes could ever fill the black hole already created by negative government spending.
A long term government shutdown will eventually require cuts in entitlements, if not a total overhaul of certain aid programs. Imagine an end to all disability payments, including veterans disability payments. Imagine federal employee pensions put on hold for an undesignated period of time. Imagine food stamps placed on hiatus for 50 million people. Imagine how many states now rely on federal funding just to keep municipalities from bankruptcy. Get the picture now?
End Of Foreign Faith In U.S. Treasuries
In a disgusting display of propaganda, media outlet Reuters has released an article claiming that, default or not, Asian investors and central banks are “hostage” to U.S. debt:
http://www.reuters.com/article/2013/09/29/us-usa-debt-asia-analysis-idUSBRE98S0GY20130929
Their argument essentially revolves around the lie that Asian investors believe an American default to be “unthinkable”. Surely, the unnamed Japanese investment source they cite as an “insider” truly represents the whole of Asia.
The reality is, the Asians (the Chinese in particular) have been preparing for a calamity in the U.S. Treasury market for years.
Most foreign investors in U.S. Treasuries have converted their long term bond holdings to short term bond holdings; meaning, they are ready to liquidate their bonds at a moment's notice. Overall purchase levels of treasuries are either static, or falling depending on the nation involved.
China has been internationalizing its currency, the Yuan, since 2005. China has opened Yuan “clearing houses in multiple countries to allow faster convertibility of the Yuan, quietly supplanting the dollar as the world reserve currency. These clearing houses now exist in London, Hong Kong, Singapore, Taiwan, and Kenya. The Federal Reserve and international banks like JP Morgan are heavily involved in the internationalization of the Yuan.
The assertion that Asia is somehow hostage to U.S. debt is a lie beyond all proportions. In truth, the U.S. economy is actually hostage to Asian holdings of U.S. debt. A call for a dump of U.S. treasury bonds by China, for example, in the face of a U.S. default, would immediately result in a global chain reaction ending in the destruction of the dollar as the world reserve currency. This is not speculation, this is mathematical fact. China is not going to sit back and do nothing while their investment in U.S. debt quickly disintegrates. Why would they take the chance when they could could just sell, sell, sell!
The very idea that Reuters is attempting to twist the fundamentals surrounding a default event leads me to believe a default event may be preordained.
What Will Be Defunded?
Non-essential personnel (which apparently includes Obama's maids), will be the first to receive a pink slip from the federal government. Extra Pentagon staff, EPA staff, FDA staff, IRS staff, etc will all be cut. Good riddance. But what will follow will not be so pleasant.
If a shutdown stretches for months, expect cuts in all support programs and entitlements. Veterans disability checks, social security, Medicare, employee pensions, even the Postal Service is likely to undergo defunding. National Parks, and schools that receive federal aid will discover immediate cash-loss. In fact, any state or city that relies on federal funds should plan for the possibility that those funds will disappear.
Military cuts would be at the bottom of the list, but I would not discount the chance of that either.
It cannot be denied; an enormous subsection of the American public is dependent on federal money. If that money dries up, chaos will ensue. I don't like it, but it is a concern.
Controlled Reaction
A long term shutdown will be catastrophe no matter how you slice it. Foreign creditors will react harshly. The bond market will see a haircut not unlike that given to investors in Greek treasuries. Austerity will become an American way of life. The only mitigating factor will be the Federal Reserve, which I believe may institute “extraordinary measures” without congressional consent in order to continue feeding stimulus into government regardless of whether the debt ceiling is raised or not. Given enough desperation, the American public might even applaud such an action and praise the Fed as “heroic”.
In this situation, the U.S. would be facing a Weimar-style currency collapse, rather than a debt default. But in either scenario, the dollar is the final target.
Unfortunately, too many economic analysts presume that the only threat to the dollar's value is hyperinflation (these are the same people that quote the Fed's crooked CPI numbers). But the dollar is just as vulnerable to a debt default and loss of reserve status. Devaluation seems to be inevitable regardless of the outcome of the funding debate.
The Republicans could still surrender, and even if they don't, real damages will not be felt until after October 17th. This is plenty of time to manipulate the public into demanding more spending even when more spending is not in our best interests in the long term. Our greatest concern, though, should be whether or not the establishment is ready to pull the plug on the dollar altogether, using the debt ceiling crisis as cover in order to distract away from the involvement of international banks in the overall problem. There is no doubt given the facts at hand that America is on the edge of a terrible pyre. Is this the event that will finally trigger collapse? We'll know more in a week…
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via Zero Hedge Read More Here..
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While American troops are in the field, winding down over a decade of fraudulent “Bush” wars, the GOP plans to cut off vital services to 22 million veterans families and over 1 million serving on active duty.
Vía Veterans Today http://www.veteranstoday.com/2013/09/30/tea-party-votes-to-end-vital-services-for-vets-and-military/?utm_source=rss&utm_medium=rss&utm_campaign=tea-party-votes-to-end-vital-services-for-vets-and-military
US companies are warning about Q3 earnings at the second highest level since 2001, with estimates well below what they were just three short months ago. Of course, the US equity markets don’t care – having rallied aggressively in the face of this collapse; lubricated by multiple-expanding QE and rev. repo. As Reuters reports, companies issuing negative outlooks outnumber positive ones by 5.2-to-1, the most negative since the 6.3-to-1 ratio in the second quarter, when however the “second half recovery” (which has been once again indefinitely delayed, perhaps to the third half?) was said would take place momentarily and lead to another mythical rebound. Industrials, Materials, and Tech top the list for negative pre-announcements.
Third-quarter earnings for S&P 500 companies were expected to increase by 4.6% compared with a year ago, down from a forecast of 8.5% on July 1.
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Technology is the sector with the highest number of third-quarter negative outlooks, with 27 warnings. Among them was Autodesk Inc, which anticipates lower demand for its computer-aided design software used in construction, manufacturing and engineering.
Consumer discretionary companies have the second highest number of warnings, including Target Corp. Target said in August that shoppers remained cautious and that its new Canadian stores were not doing as well as anticipated.
…
“there’s a lot of noise right now that’s driving sector performance, and not the fundamentals.”
(h/t @Not_Jim_Cramer)
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via Zero Hedge Read More Here..
Over the past week many have been scratching their heads over why JPMorgan is so eager to comply with the DOJ’s investigation into the bank’s misrepresentation of the quality of its RMBS bundled mortgages, having gone so far as to suggest that JPM is weilling to settle for as much as $4 billion in cash (with a $7 billion non-cash component) though still shy of the DOJ’s $20 billion ask. The reason, as the WSJ reports, may be very simple one: a rat is providing the Feds with information deep from within the house of the whale. “The Justice Department’s pursuit of possible criminal charges against J.P. Morgan Chase & Co. is based in large part on a key cooperator from inside the bank who is aiding the government and has provided information suggesting the bank vastly overstated the quality of mortgages that were being bundled into securities and sold to investors, according to people familiar with the matter.”
The WSJ has more:
Among the offices that received leads was Sacramento, Calif., which got documents related to billions of dollars of mortgage-backed securities issued by J.P. Morgan between 2005 and 2007, according to people with knowledge of the investigation. Among them, according to two people familiar with the investigation, was an email from a bank employee, warning her superiors they were vastly overstating the quality of the mortgages being bundled into securities. The bank went ahead and securitized them anyway, according to these people.
The woman who wrote that email has been cooperating with federal authorities and is expected to be available as a witness if the government ever brings a case to court, these people said. Her cooperation, along with documents, has fueled confidence among some lawyers within the Justice Department that they have built a solid, prosecutable case built on hard evidence. Among the documents the government has are ones suggesting J.P. Morgan knew the underlying mortgages it sold were of poor quality but told investors otherwise, according to people familiar with the investigation.
Curiously, it was also internal bickering, mostly between the firm’s CIO office and various peripheral banking offices, that led to the media leaks in April 2012 exposing the London Whale’s position, leading to the first “tempest in a teapot” comment from Jamie Dimon, which has since cost the bank very dearly, resulted in the admission of securities fraud guilt, cost many JPM employees their jobs, and has two ex-JPMorganites being charged criminally in NY court.
However, back then it was mostly cash and credibility damage to the bank, which primarily abused client deposits to serve as collateral for highly leveraged margined bets gone horribly wrong in an attempt to corner the IG9 market. This time there appears to be malfeasance in an area near and dear to Obama’s heart: housing. And the DOJ seems to have locked in on not only JPM but the man who seemingly committed perjury in Congress in his recollection of the London Whale events.
Which is why this time the bottom line damage to JPM will be far greater.
Based partly on that belief, the Justice Department has been pressing the bank in negotiations to admit wrongdoing in some form. Bank officials have been adamant no crimes were committed and insist they won’t admit to criminal wrongdoing. In the discussions, the bank has also denied suggestions that the Sacramento evidence is particularly incriminating or damaging to J.P. Morgan’s reputation, according to people familiar with the discussions.
Reputation? Jokes aside, we can only hope this case goes to trial: because it is only in the treasure trove of public discovery that one will discover, beyond a reasonable doubt, just what other markets JPM was manipulating, and finally close the book on the biggest “conspiracy theory” of all – JPM’s involvement in the precious metals market, despite the CME’s most recent scrambling to shove all such allegations under the carpet as quickly as possible.
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via Zero Hedge Read More Here..
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NBC Nightly News anchor Brian Williams told viewers on September 27 that Iran was “suddenly claiming they don’t want nuclear weapons.” But that is incorrect: Iran has said the same thing for years, sometimes directly to Williams himself.
The report…
Vía Global Research http://www.globalresearch.ca/nbcs-iran-bomb-shocking-nuclear-news-wasnt-news-at-all/5352264?utm_source=rss&utm_medium=rss&utm_campaign=nbcs-iran-bomb-shocking-nuclear-news-wasnt-news-at-all
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The riots were sparked by the spiraling prices of all fuel products following the abolition of subsidies and the growing shortages of all fuel products. Moreover, the recurring shortages of fuel have resulted in shortages of food and other products and goods brought into Khartoum from both the Red Sea ports and the countryside.
Vía BlackListedNews.com http://feedproxy.google.com/~r/blacklistednews/hKxa/~3/4Rq6BSl3RiA/15729
