Glenn Beck - An Inconvenient Debt

tank

EOG Dedicated
#41
Re: Glenn Beck - An Inconvenient Debt

Why do you think the "fat cats" as you say took on all the risk they did?

The reason is because you took away the downside.

The government getting involved backing these loans created a pretty good deal to encourage risk

Why doesn't everyone take all their money and go to the casino?

We dont do that , because the markets protect bad behavior since we all know we can loose.


If there was fraud, or something done illegal, we have laws for that.

Lending should be a pretty simple business dont you think?

I lend my money to you, evaluate the risk, charge a rate, commensurate with the risk , and the decide to lend.

If you dont pay, I lose, not the taxpayers?


If you drill down far enough, you will find at the root of most problems stem from the government
It was only 20% of the bad loans that came from freddy and mac.By repealing the Glass Seagull Act is where the problems started when the govt. let Wall Street run wild.Phil Gramms bill that wasn't even debated is what let this fire burn out of control.
Credit default swaps are essentially insurance policies covering the losses on securities in the event of a default. Financial institutions buy them to protect themselves if an investment they hold goes south. It's like bookies trading bets, with banks and hedge funds gambling on whether an investment (say, a pile of subprime mortgages bundled into a security) will succeed or fail. Because of the swap-related provisions of Gramm's bill?which were supported by Fed chairman Alan Greenspan and Treasury secretary Larry Summers?a $62 trillion market (nearly four times the size of the entire US stock market) remained utterly unregulated, meaning no one made sure the banks and hedge funds had the assets to cover the losses they guaranteed.
 
#43
Re: Glenn Beck - An Inconvenient Debt

Thanks for the Paul Krugman view, tank.
Here are the real numbers:


Take a look at that light blue line the last time a Democrat was in office. :hangt



Clinton "balanced the budget" alright -- at the expense of our military. 2938u4ji23
 

tank

EOG Dedicated
#44
Re: Glenn Beck - An Inconvenient Debt

Thanks for the Paul Krugman view, tank.
Here are the real numbers:


Take a look at that light blue line the last time a Democrat was in office. :hangt



Clinton "balanced the budget" alright -- at the expense of our military. 2938u4ji23
I hate going back on my word about wasting time with a fraud but joe canada is just to easy.
Are you dumb enough to think that Bush built up the military in less than 17 months to go kick ass in Afghanistan?What they accomplished in Kosovo was a result of luck in canada's opinion?The military was just fine under Clinton but thanks for canadas concern.
 

tank

EOG Dedicated
#45
Re: Glenn Beck - An Inconvenient Debt

[SIZE=+1]SCROLL to the RIGHT only if you're prepared to be SHOCKED!!![/SIZE]



[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President Ronald Reagan is the first President to increase the National Debt by more than $100 Billion in one year![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President Ronald Reagan is the first President to increase the National Debt by more than $200 Billion in one year![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George H.W. Bush is the first President to increase the National Debt by more than $300 Billion in one year![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George H.W. Bush is the first President to increase the National Debt by more than $400 Billion in one year![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George W. Bush is the first President to increase the National Debt by more than $500 Billion in one year![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George W. Bush has increased the National Debt by more than $500 Billion AGAIN! Almost hits $600 Billion![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George W. Bush has increased the National Debt by more than $500 Billion a THIRD time![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George W. Bush has increased the National Debt by more than $500 Billion a FOURTH time![/FONT]
[FONT=Trebuchet MS, Geneva, Arial, Helvetica, SunSans-Regular, sans-serif]President George W. Bush has increased the National Debt by more than $500 Billion a FIFTH time![/FONT]


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#46
Re: Glenn Beck - An Inconvenient Debt

You keep listening to a stalking certified junkie convict who's lies and hallucinations are well documented and who's slobbering George Soros political views generate almost ZERO interest "across the street."

I'll keep doing what I do best: Expose anti-American frauds by delivering the news and facts in the most accurate, fair and objective way possible.

Btw, incessantly alleging that I'm "Canadian" while ignoring the hard-hitting substance only makes YOU look like a jack ass. Why? Implicit in your remarks is an admission that a foreigner knows more about your country's affairs than you do.

Dope. :smackdown
 

tank

EOG Dedicated
#47
Re: Glenn Beck - An Inconvenient Debt

You keep listening to a stalking certified junkie convict who's lies and hallucinations are well documented and who's slobbering George Soros political views generate almost ZERO interest "across the street."

I'll keep doing what I do best: Expose anti-American frauds by delivering the news and facts in the most accurate, objective way possible.

Btw, incessantly alleging that I'm "Canadian" while ignoring the hard-hitting substance only makes YOU look like a jack ass. Why? Implicit in your remarks is an admission that a foreigner knows more about your country's affairs than you do.

Dope. :smackdown
The only thing thats documented is that you are indeed from canada and are on med's which is obvious.Yes keep going after the anti-americans since that seems like a harmless job you cannot screw up.If you think a foreigner knows more about our country just proves the obvious but your not smart enough to figure that out. Nice screw up again dummy.
 
#48
Re: Glenn Beck - An Inconvenient Debt

That laughable amateurish cartoon chart you posted measures the national debt in dollars -- as opposed to the % of GDP (economics 101).

Here, I'll break it down into very simple palatable terms so neophytes like you can understand:

Household budget A: $60,000 a year with $4,000 worth of credit card debt

Household budget B: $260,000 a year with $8,000 worth of credit card debt

Note: Budget B carries 100% (double!) more debt than budget A, which would cause any Krugman-like kindergarten "graph" to go off the charts.

I won't defend the shameful Medicare prescription drug benefit, but c'mon....the wartime deficit under Bush was more than manageable, while the current one King Hussein wants to saddle us with is "generational theft" (massive future tax hikes and stagflation as far as the eye can see).

The Krugmans of the world are full of shyte.

And I'm just as eligible -- if not more so -- to be POTUS as B. Hussein Obama.

 

tank

EOG Dedicated
#49
Re: Glenn Beck - An Inconvenient Debt

That laughable amateurish cartoon chart you posted measures the national debt in dollars -- as opposed to the % of GDP (economics 101).

Here, I'll break it down into very simple palatable terms so neophytes like you can understand:

Household budget A: $60,000 a year with $4,000 worth of credit card debt

Household budget B: $260,000 a year with $8,000 worth of credit card debt

Note: Budget B carries 100% (double!) more debt than budget A, which would cause any Krugman-like kindergarten "graph" to go off the charts.

I won't defend the shameful Medicare prescription drug benefit, but c'mon....the wartime deficit under Bush was more than manageable, while the current one King Hussein wants to saddle us with is "generational theft" (massive future tax hikes and stagflation as far as the eye can see).

The Krugmans of the world are full of shyte.

And I'm just as eligible -- if not more so -- to be POTUS as B. Hussein Obama.

Um joe, budget b has over 4 times more budget too . Bush did not include his wartime spending in his budget and it all went to the debt.Please tell us more though.
 

brucefan

EOG Dedicated
#50
Re: Glenn Beck - An Inconvenient Debt

Recent new videos added over at
http://www.the912project.com/


Wow, can you just smell the racism in the room on this one

:doh1

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Founders Keepers

<TABLE><TBODY><TR><TD background=/wp-content/themes/metro_10/images/ff_bg.gif>May 1st, 2009

"I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." - Thomas Jefferson



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brucefan

EOG Dedicated
#52
Re: Glenn Beck - An Inconvenient Debt

Sunday, May 31, 2009

End of the financial system may be imminent


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The end of the current financial system, as we know it, maybe imminent. If you would have asked me even two weeks ago if collapse was imminent, I would have said it was highly unlikely, now I am saying it is possible. Bernanke may be able to patch things up short-term, if he is lucky, but long term the U.S. financial structure is in serious trouble. There is just too much Treasury debt that needs to be raised. An international panic out of Treasury securities, even a slow controlled panic, means the Fed will be the major buyer. This will ultimately mean record inflation.

And keep this in mind, we have never seen a collapse of a currency like the dollar. Even the Wiemar inflation can not serve as an example. Since the dollar is the reserve currency of most of the world, a panic out of the dollar means more dollars will return to the U.S, shores than any country has ever experienced.

Other countries have had collapsed currencies, but never in the history of world of finance has so much currency been held outside a country of issue that could come flying back, almost on a moments notice. If the panic out of the dollar starts, even if Bernanke stops printing money (unlikely), all the dollars flying back into the U.S. could cause a huge price inflation all on its own.

more
 

brucefan

EOG Dedicated
#54
Re: Glenn Beck - An Inconvenient Debt

The American Empire Is Bankrupt

http://www.truthdig.com/report/item/20090614_the_american_empire_is_bankrupt/

Posted on Jun 14, 2009

[FONT=georgia, times new roman, times, serif]By Chris Hedges
This week marks the end of the dollar?s reign as the world?s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That?s over. It is not coming back. And what is to come will be very, very painful.
Barack Obama, and the criminal class on Wall Street, aided by a corporate media that continues to peddle fatuous gossip and trash talk as news while we endure the greatest economic crisis in our history, may have fooled us, but the rest of the world knows we are bankrupt. And these nations are damned if they are going to continue to prop up an inflated dollar and sustain the massive federal budget deficits, swollen to over $2 trillion, which fund America?s imperial expansion in Eurasia and our system of casino capitalism. They have us by the throat. They are about to squeeze.
There are meetings being held Monday and Tuesday in Yekaterinburg, Russia, (formerly Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization. The United States, which asked to attend, was denied admittance. Watch what happens there carefully. The gathering is, in the words of economist Michael Hudson, ?the most important meeting of the 21st century so far.?
It is the first formal step by our major trading partners to replace the dollar as the world?s reserve currency. If they succeed, the dollar will dramatically plummet in value, the cost of imports, including oil, will skyrocket, interest rates will climb and jobs will hemorrhage at a rate that will make the last few months look like boom times. State and federal services will be reduced or shut down for lack of funds. The United States will begin to resemble the Weimar Republic or Zimbabwe. Obama, endowed by many with the qualities of a savior, will suddenly look pitiful, inept and weak. And the rage that has kindled a handful of shootings and hate crimes in the past few weeks will engulf vast segments of a disenfranchised and bewildered working and middle class. The people of this class will demand vengeance, radical change, order and moral renewal, which an array of proto-fascists, from the Christian right to the goons who disseminate hate talk on Fox News, will assure the country they will impose.
I called Hudson, who has an article in Monday?s Financial Times called ?The Yekaterinburg Turning Point: De-Dollarization and the Ending of America?s Financial-Military Hegemony.? ?Yekaterinburg,? Hudson writes, ?may become known not only as the death place of the czars but of the American empire as well.? His article is worth reading, along with John Lanchester?s disturbing expos? of the world?s banking system, titled ?It?s Finished,? which appeared in the May 28 issue of the London Review of Books.
?This means the end of the dollar,? Hudson told me. ?It means China, Russia, India, Pakistan, Iran are forming an official financial and military area to get America out of Eurasia. The balance-of-payments deficit is mainly military in nature. Half of America?s discretionary spending is military. The deficit ends up in the hands of foreign banks, central banks. They don?t have any choice but to recycle the money to buy U.S. government debt. The Asian countries have been financing their own military encirclement. They have been forced to accept dollars that have no chance of being repaid. They are paying for America?s military aggression against them. They want to get rid of this.?
China, as Hudson points out, has already struck bilateral trade deals with Brazil and Malaysia to denominate their trade in China?s yuan rather than the dollar, pound or euro. Russia promises to begin trading in the ruble and local currencies. The governor of China?s central bank has openly called for the abandonment of the dollar as reserve currency, suggesting in its place the use of the International Monetary Fund?s Special Drawing Rights. What the new system will be remains unclear, but the flight from the dollar has clearly begun. The goal, in the words of the Russian president, is to build a ?multipolar world order? which will break the economic and, by extension, military domination by the United States. China is frantically spending its dollar reserves to buy factories and property around the globe so it can unload its U.S. currency. This is why Aluminum Corp. of China made so many major concessions in the failed attempt to salvage its $19.5 billion alliance with the Rio Tinto mining concern in Australia. It desperately needs to shed its dollars.
?China is trying to get rid of all the dollars they can in a trash-for-resource deal,? Hudson said. ?They will give the dollars to countries willing to sell off their resources since America refuses to sell any of its high-tech industries, even Unocal, to the yellow peril. It realizes these dollars are going to be worthless pretty quickly.?
The architects of this new global exchange realize that if they break the dollar they also break America?s military domination. Our military spending cannot be sustained without this cycle of heavy borrowing. The official U.S. defense budget for fiscal year 2008 is $623 billion, before we add on things like nuclear research. The next closest national military budget is China?s, at $65 billion, according to the Central Intelligence Agency.
There are three categories of the balance-of-payment deficits. America imports more than it exports. This is trade. Wall Street and American corporations buy up foreign companies. This is capital movement. The third and most important balance-of-payment deficit for the past 50 years has been Pentagon spending abroad. It is primarily military spending that has been responsible for the balance-of-payments deficit for the last five decades. Look at table five in the Balance of Payments Report, published in the Survey of Current Business quarterly, and check under military spending. There you can see the deficit.
To fund our permanent war economy, we have been flooding the world with dollars. The foreign recipients turn the dollars over to their central banks for local currency. The central banks then have a problem. If a central bank does not spend the money in the United States then the exchange rate against the dollar will go up. This will penalize exporters. This has allowed America to print money without restraint to buy imports and foreign companies, fund our military expansion and ensure that foreign nations like China continue to buy our treasury bonds. This cycle appears now to be over. Once the dollar cannot flood central banks and no one buys our treasury bonds, our empire collapses. The profligate spending on the military, some $1 trillion when everything is counted, will be unsustainable.
?We will have to finance our own military spending,? Hudson warned, ?and the only way to do this will be to sharply cut back wage rates. The class war is back in business. Wall Street understands that. This is why it had Bush and Obama give it $10 trillion in a huge rip-off so it can have enough money to survive.?
The desperate effort to borrow our way out of financial collapse has promoted a level of state intervention unseen since World War II. It has also led us into uncharted territory.
?We have in effect had to declare war to get us out of the hole created by our economic system,? Lanchester wrote in the London Review of Books. ?There is no model or precedent for this, and no way to argue that it?s all right really, because under such-and-such a model of capitalism ... there is no such model. It isn?t supposed to work like this, and there is no road-map for what?s happened.?
The cost of daily living, from buying food to getting medical care, will become difficult for all but a few as the dollar plunges. States and cities will see their pension funds drained and finally shut down. The government will be forced to sell off infrastructure, including roads and transport, to private corporations. We will be increasingly charged by privatized utilities?think Enron?for what was once regulated and subsidized. Commercial and private real estate will be worth less than half its current value. The negative equity that already plagues 25 percent of American homes will expand to include nearly all property owners. It will be difficult to borrow and impossible to sell real estate unless we accept massive losses. There will be block after block of empty stores and boarded-up houses. Foreclosures will be epidemic. There will be long lines at soup kitchens and many, many homeless. Our corporate-controlled media, already banal and trivial, will work overtime to anesthetize us with useless gossip, spectacles, sex, gratuitous violence, fear and tawdry junk politics. America will be composed of a large dispossessed underclass and a tiny empowered oligarchy that will run a ruthless and brutal system of neo-feudalism from secure compounds. Those who resist will be silenced, many by force. We will pay a terrible price, and we will pay this price soon, for the gross malfeasance of our power elite.
[/FONT]
 

brucefan

EOG Dedicated
#55
Re: Glenn Beck - An Inconvenient Debt

Free Healthcare for everybody!

And more stimulus too!!!
:puking:


Sunday, June 28, 2009

Hyperinflation Nation


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brucefan

EOG Dedicated
#56
Re: Glenn Beck - An Inconvenient Debt

<!-- skip links for text browsers -->The Coming Economic Depression


U.S. Rescue May Reach $23.7 Trillion






U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update1)

By Dawn Kopecki and Catherine Dodge

July 20 (Bloomberg) -- U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury?s Troubled Asset Relief Program.

The Treasury?s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.

?TARP has evolved into a program of unprecedented scope, scale and complexity,? Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.

Costs include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs, he said.

Link
 

brucefan

EOG Dedicated
#59
Re: Glenn Beck - An Inconvenient Debt

<LI class="dateStamp first"><SMALL>AUGUST 8, 2009, 12:40 A.M. ET</SMALL> <!-- ID: SB124970470294516541 --><!-- TYPE: Politics and Policy --><!-- DISPLAY-NAME: --><!-- PUBLICATION: The Wall Street Journal Interactive Edition --><!-- DATE: 2009-08-08 00:40 --><!-- COPYRIGHT: Dow Jones & Company, Inc. --><!-- ORIGINAL-ID: --><!-- article start --><!--CODE=SUBJECT SYMBOL=OECNCODE=SUBJECT SYMBOL=ONEWCODE=STATISTIC SYMBOL=FREECODE=SUBJECT SYMBOL=OPOL-->Geithner Asks Congress to Increase Federal Debt Limit




Washington -- U.S. Treasury Secretary Timothy Geithner asked Congress to increase the $12.1 trillion debt limit on Friday, saying it is "critically important" that they act in the next two months.
Mr. Geithner, in a letter to U.S. lawmakers, said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Mr. Geithner said.
The Treasury didn't request a specific increase in the letter.
"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Mr. Geithner said in a letter to lawmakers.
Mr. Geithner said the that it is "clearly a moment in our history" that requires support from both Democrats and Republicans for the increase.
"Congress has never failed to raise the debt limit when necessary," Mr. Geithner said.
The non-partisan Congressional Budget Office said Thursday the federal government's budget deficit reached $1.3 trillion through the first ten months of fiscal 2009, on track to reach a record high of $1.8 trillion for the 12-month period.
Write to Corey Boles at corey.boles@dowjones.com and Michael R. Crittenden at michael.crittenden@dowjones.com
<!-- article end -->
 

brucefan

EOG Dedicated
#60
Re: Glenn Beck - An Inconvenient Debt

Just another fear monger racist:doh1



Buffett: We're Going to Be Crushed Under Mountain of Debt

<CITE>Posted Aug 19, 2009 11:51am EDT by Henry Blodget in Investing, Media, </CITE>
<CITE></CITE>
A highly influential American has finally hit the panic button about the tremendous mountain of debt the country is piling up.
Last year, Warren Buffett says, we were justified in using any means necessary to stave off another Great Depression. Now that the economy is beginning to recover, however, we need to curtail our out-of-control spending, or we'll destroy the value of the dollar and many Americans' life savings.

Some not-so-fun facts from Buffett's editorial today in the New York Times:
  • Congress is now spending 185% of what it takes in
  • Our deficit is a post WWII record of 13% of GDP
  • Our debt is growing by 1% a month
  • We are borrowing $1.8 trillion a year
$1.8 trillion is a lot of money. Even if the Chinese lend us $400 billion a year and Americans save a remarkable $500 billion and lend it to the government, we'll still need another $900 billion.
So, where's it going to come from? Most likely the printing press. And, ultimately, Buffett says, that will destroy the value of the dollar.
 

brucefan

EOG Dedicated
#62
Re: Glenn Beck - An Inconvenient Debt

LOSING STRATEGY


Can we spend our way out of debt?


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brucefan

EOG Dedicated
#63
Re: Glenn Beck - An Inconvenient Debt

Friday, September 11, 2009

Could US default on its Debt? Government Borrows 30 Billion a Week!


With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn't raise the debt ceiling, but it is a remote scenario.

While requests to raise the debt ceiling are routine and Congress typically agrees, they can turn into protracted battles. Treasury officials are trying to play offense, telling lawmakers that the recovery is too fragile to risk raising questions about whether the U.S. will meet its obligations, these people said. The requests often turn into opportunities for lawmakers to attach other, often controversial provisions, which can delay action.

Mr. Geithner's request comes at a politically sensitive time as concerns mount over the nation's record debt, ballooning budget deficit and reliance on foreign investors.

"In this environment, both [political parties] know that they can't have a serious question of whether Treasury would miss a debt-service payment," said Lou Crandall, a senior economist with Wrightson ICAP, a Wall Street fixed-income research firm.

Some Republicans say they won't vote for an increase. They view the coming debate as a chance to shift responsibility for federal deficits onto congressional Democrats at a time when voters are increasingly fretful about federal borrowing and spending. Voting to raise the ceiling will likely pose a dilemma for more-conservative Democrats, and especially those up for re-election next year.
LINK
 

brucefan

EOG Dedicated
#65
Re: Glenn Beck - An Inconvenient Debt

<!-- skip links for text browsers -->The Coming Economic Depression


U.S. Rescue May Reach $23.7 Trillion






U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update1)

By Dawn Kopecki and Catherine Dodge

July 20 (Bloomberg) -- U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury?s Troubled Asset Relief Program.

The Treasury?s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.

?TARP has evolved into a program of unprecedented scope, scale and complexity,? Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.

Costs include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs, he said.

Link


Here comes round two

I guess the glue didnt gold, we sprung another leak
:doh1





<FORM action=https://www.paypal.com/cgi-bin/webscr method=post></FORM>



<!-- google_ad_section_start(name=default) -->Friday, November 6, 2009

Government To Bailout Freddie Mac



NEW YORK (Reuters) - Freddie Mac, the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing.
Increases in the value of securities Freddie Mac held over the period helped buoy its net worth, however, erasing its need to tap government funds for a second straight quarter to stay solvent while continuing to buy and guarantee home loans.
Including a $1.3 billion dividend payment on senior preferred stock bought by the Treasury in previous quarters, Freddie Mac's third-quarter loss increases to $6.3 billion.
LINK HERE
 

brucefan

EOG Dedicated
#68
Re: Glenn Beck - An Inconvenient Debt

Thank you Glen for warning us and telling the truth


Robbing Peter to pay Paul

[FONT=Palatino, Georgia, Times New Roman, Times, serif]Fed purchase of debt like family using Visa to pay MasterCard[/FONT]


<HR SIZE=1>[SIZE=-1]Posted: January 15, 2010[/SIZE]
[SIZE=-1]12:45 am Eastern[/SIZE]

By Jerome R. Corsi
[SIZE=-1]? 2010 WorldNetDaily [/SIZE]

<TABLE align=right border=0><TBODY><TR><TD width=200>

President Obama

</TD></TR></TBODY></TABLE>Statistics from the federal government document how the Federal Reserve over the course of 2009 bought some 80 percent of the $1.5 trillion borrowed by the U.S. Treasury ? making the federal government like the family that uses Visa to pay down a monthly MasterCard bill.
Remarkable as that may seem, data make clear the Obama administration has been managing trillion dollar federal budget deficits by selling financial instruments to the Fed.
Even to sophisticated investment analysts, using the Fed to buy Treasury debt is the equivalent of simply printing money to pay for government-funded programs an increasingly bankrupt United States can no longer afford.
While the Federal Reserve's massive purchases of Treasury bonds and government agency debt, including debt issued by the government-sponsored mortgage giants Fannie Mae and Freddie Mac, has keep interest rates low, the Federal Reserve Open Market Committee in its Dec. 15-16, 2009, meeting strongly suggested the program to buy debt issued by U.S. Treasury, government-sponsored agency debt and mortgage-backed securities will come to a close at some point.

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And with the Chinese revealing a diminishing appetite to buy U.S. government debt, the Treasury is facing a crisis regarding how to sell possibly $2 trillion in new debt to finance the 2010 Obama administration federal budget deficit.
The likely results of the crisis ? rising interest rates and hyper-inflation ? could include a burst stock market bubble and a deepened real estate foreclosure crisis and also could force average Americans to face higher prices as the dollar continues to lose value against stronger currencies, such as the euro and possibly the yen.
How will Obama continue to sell trillions of dollars of debt?
The amount of Treasury-issued debt has spiked in the first year of the Obama administration and is likely to continue at elevated levels given the $9 trillion in federal budget deficits President Obama has projected over the next 10 years.
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The fiscal 2009 federal budget deficit totaled nearly 12 percent of gross domestic product and required more than $1.5 trillion of newly issued Treasury debt to finance it, according to Bill Gross, an investment analyst at the giant bond dealer PIMCO.
Foreign investors including the Chinese bought somewhat under 20 percent of the $1.5 trillion of Treasury debt the Obama administration needed to sell in order to finance the $1.84 trillion federal budget deficit in fiscal year 2009.
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In other words, in fiscal year 2009, the Federal Reserve purchased approximately 80 percent of the Treasury debt issued to finance the Obama administration budget deficit.
The Federal Reserve has also become a buyer of last resort for government agency debt.
When the Federal Reserve discontinues its program of buying U.S. Treasury and government agency debt, interest rates will almost certainly have to rise in order to attract buyers.
Warnings from China
In 2009, China led foreign investors in selling mortgage securities issued by government-sponsored entities Fannie Mae and Freddie Mac, according to an analysis published in the Wall Street Journal last July.
China has warned Richard Fisher, the president of the Dallas Federal Reserve, that the Obama administration is "monetizing" the U.S. debt by allowing the Federal Reserve to purchase Treasury debt.
With little fanfare, China's foreign-exchange reserves have grown to $2.27 trillion at the end of September, a dramatic 700 percent increase in the last 5 years.
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This comes at a time when China is increasingly concerned that inevitable dollar devaluation makes holding dollar assets a risky foreign-exchange reserve strategy.
In 2009, China, the largest foreign holder of U.S. Treasury debt, reduced its holding of U.S. Treasury bonds out of a concern over the safety of U.S.-dollar-linked assets.
According to the U.S. Treasury, China remains the largest foreign holder of U.S. Treasury debt, amounting to $798.9 billion in October 2009, with Japan second on the list at $746.5 billion.
One day after Chinese Prime Minister Wen Jiabao snubbed President Obama at the U.N.'s Copenhagen Climate Summit in December, the Chinese warned the United States that China's ability to continue buying U.S. Treasury debt was limited.
Zhu Min, the deputy governor of the People's Republic of China, told the Shanghai Daily that it is getting harder for the People's Bank of China to buy U.S. Treasuries because the shrinking U.S. currency account is reducing the supply of U.S. dollar foreign exchange reserves overseas.
This was dire news for the Obama administration that in 2010 ? and for the foreseeable future ? will be dependent on China to buy U.S. Treasury debt to meet the demands of the proposed trillion dollar budget deficits.
The Shanghai Daily reported that Zhu told an academic audience that it was inevitable the value of the dollar would fall given the increasing reliance of the Obama administration on issuing U.S. Treasury debt to finance deficit spending.
"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said. "Double the holdings? It is definitely impossible."
Zhu's warning was clear.
"The world does not have so much money to buy more U.S. Treasuries," he said.
What China's warnings portend is that the Obama administration's determination to expand the U.S. social welfare state will necessarily meet a limit when foreign nations lack the U.S. dollar foreign exchange reserves needed to purchase increasing amounts of U.S. Treasury debt.
Zhu's comments were a warning to the Obama administration that China does not approve of the large and continuing trillion dollar deficits the U.S. is projecting into the future, or of the way the Obama administration has chosen to finance those deficits.










http://www.wnd.com/index.php?fa=PAGE.view&pageId=121993
 

brucefan

EOG Dedicated
#69
Re: Glenn Beck - An Inconvenient Debt

Once again proving he is the biggest putz on TV

Olbermann's 'Federal Budget Debt a Good Thing'

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KEITH OLBERMANN, HOST: That`s next, but first tonight`s worst persons in the world. The bronze to Congresswoman Marsha Blackburn of Tennessee. You`ll remember, the record setter for longest monotone question to the president at their meeting. Her new debt solution? Allowing younger Americans to privatize their Social Security accounts, where they can get wiped out the next time the mortgage industry or some other form of legalized gambling wipes out another chunk of the economy. By the way, federal budget debt is a good thing in a recession. It`s not a bad thing. As a percentage of Gross Domestic Product, it`s about the same as it was in 1970, as it is right now, far less than it was throughout the Reagan administration.
Really? Well, let's look at the numbers, shall we?
According to the Office of Management and Budget, which happens to be under the oversight of the White House, these are the federal deficit numbers for the years in question as a percentage of GDP (last number on the right):

As you can see, in 1970, the deficit as a percentage of GDP was 0.3. Under Reagan, it never got over 6.0 percent.
Let's look at today's numbers, shall we?​
Aha. 2009 was 9.9 percent, and 2010 is estimated to be 10.6 percent.
As such, Olbermann wasn't even close.
Now, let's look at the gross federal debt numbers (last number on the right):​
As you can see, the total gross federal debt as a percentage of GDP in 1970 was 37.6. The highest it got during the Reagan administration was 53.1 percent (fiscal 1989 budget).
Now, let's look at today's numbers:
As you can see, 2009's total was 83.4 percent of GDP. As we don't know what the final numbers will be for 2010, we can only go by the estimate of 94.3 percent.
Regardless of where 2010 ends up, it will certainly be FAR greater that 1970's 37.6 percent AND 1989's 53.1 percent.
As such, Olbermann wasn't only wrong -- he was staggeringly wrong.​

But this shouldn't shock anyone who's been reading NewsBusters since we began covering this pompous buffoon in 2005, and certainly won't surprise conservative talk radio host Hugh Hewitt who told Howard Kurtz on Sunday's "Reliable Sources":


He's a joke. He's recognized as a joke. His ratings have gone through the floor because he's a sportscaster who doesn't know anything.
Indeed.
The fact of the matter is that Olbermann's popularity was based in his unprovoked attacks on the Bush administration. That's what his small number of viewers wanted from him, and that's what they got.
But now that Bush is out of office, and the Democrats control the White House and Congress, the "Countdown" host has to find other topics besides conservative bashing to fill his program every evening.
As a result, with each passing day it's becoming apparent how little he really knows, and his declining ratings show that his audience is beginning to realize it.
The only question is when the folks at General Electric and NBC will recognize that this one-trick pony has become the laughing stock of cable news.
Stay tuned.​
http://newsbusters.org/blogs/noel-s...-budget-debt-claim-shows-staggering-stupidity
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brucefan

EOG Dedicated
#70
Re: Glenn Beck - An Inconvenient Debt

Congressman Paul discusses the crisis in Greece with Megyn Kelly, and how it relates to the United States.
:



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brucefan

EOG Dedicated
#71
Re: Glenn Beck - An Inconvenient Debt

No story here, keep moving people, go back to watching Big Brother

Just Glenn spreading more fear........


CBO Warns of Greek-style U.S. Debt Crisis

--------------------------------------------------------------------------------

Quote:
The non-partisan Congressional Budget Office (CBO) released its most dire warning yet of a looming U.S. debt crisis, openly comparing the U.S. budget situation to the Greek, Irish and Argentinian debt crises and calling for a 20 percent cut in the size of the federal government. by Thomas R. Eddlem


CBO Warns of Greek-style U.S. Debt Crisis


Thomas R. Eddlem | The New American
Wednesday, 28 July 2010


The non-partisan Congressional Budget Office released its most dire warning yet of a looming U.S. debt crisis, openly comparing the U.S. budget situation to the Greek, Irish, and Argentinian debt crises and calling for a 20 percent cut in the size of the federal government. The July 27 report, ?Federal Debt and the Risk of a Fiscal Crisis,? comes just days after the Obama administration revised upward its deficit projections for fiscal 2010-11 to a two-year total of $2.89 trillion. The CBO had labeled the federal spending path ?unsustainable? in a June report.

The pull-no-punches CBO report called for immediate and drastic cuts in federal spending, or equivalent tax increases. The CBO estimated that the cuts needed to be taken now must be ?equivalent to roughly 20 percent of all of the government?s noninterest spending this year.? The CBO noted that delay in fiscal austerity would only make the cuts deeper: ?Actions taken later, particularly if there was a fiscal crisis, would need to be significantly greater to achieve that same objective. Larger and more abrupt changes in fiscal policy, such as substantial cuts in government benefit programs, would be more difficult for people to adjust to than smaller and more gradual changes.?

The risk of Greek-style debt crisis is a real possibility, according to the CBO. It noted that ?a review of fiscal crises in Argentina, Ireland, and Greece in the past decade reveals instructive common features and differences. For all three countries, the crises occurred abruptly and during recessions. However, the crises occurred at different levels of government debt relative to GDP, showing that the tipping point for a crisis does not depend solely on the debt-to-GDP ratio; the government?s long-term budget outlook, its near-term borrowing needs, and the health of the economy are also important. All three of those crises illustrate the difficulty of formulating effective policy responses once investors lose confidence in a government.? In each of these qualities, the United States most closely matches the Greek government's policies of massive deficits now, no proposals to rein in runaway deficits in the long term, and a deep current recession. In addition, the United States will have a 110 percent debt-to-GDP ratio before the end of next year, the same level Greece had in 2008.

The CBO notes that the United States is currently benefiting from historically low interest rates to borrow for its deficit spending. A fiscal crisis would spike interest costs of financing that debt, as happened in Greece, Ireland, and Argentina. ?In all three of those fiscal crises in other countries, sharp increases in interest rates on government debt forced the affected governments to make difficult choices. The U.S. government would also face difficult choices if interest rates on its debt spiked. For example, a 4-percentage point across-the-board increase in interest rates would raise federal interest payments next year by about $100 billion relative to CBO?s baseline projection ? a jump of more than 40 percent. As longer-term debt matured and was refinanced at such higher rates, the difference in the annual interest burden would mount; by 2015, if such higher-than-anticipated rates persisted, net interest would be nearly double the roughly $460 billion that CBO currently projects for that year.? Such a debt crisis that drove interest rates up would drive the deficit up even higher, as happened with Greece, Ireland and Argentina.

The CBO study also analyzes the inflation alternative ?solution? to a fiscal crisis:


An alternative approach is to increase the supply of money in the economy. But as governments create money to finance their activities or pay creditors during fiscal crises, they raise inflation. Higher inflation has negative consequences for the economy, especially if inflation moves above the moderate rates seen in most developed countries in recent years.

The CBO explains that the inflation ?fix? would increase interest rates paid on the debt as well as government payouts to programs such as Social Security, increasing the deficit again and bringing the U.S. back to another debt crisis, the CBO concluded:


Higher inflation might appear to benefit the U.S. government financially because the value of the outstanding debt (which is mostly fixed in dollar terms) would be lowered relative to the size of the economy (which would increase when measured in dollar terms). However, higher inflation would also increase the size of future budget deficits. Specifically, if inflation was 1 percentage point higher over the next decade than the rate CBO has projected, budget deficits during those years would be roughly $700 billion larger.

SOURCE:
http://www.thenewamerican.com/index....us-debt-crisis
 

brucefan

EOG Dedicated
#72
Re: Glenn Beck - An Inconvenient Debt

America Adds $210 Billion In Gross Debt In August, Rolls $620 Billion In Bills And Notes



Submitted by Tyler Durden on 09/01/2010 21:21 -0500



As per the August 31 DTS statement, the US ended the month with a new all time record of $13.45 trillion in debt, and increase of $210 billion from the beginning of the month (or $225 billion in public debt, net of intragovernmental holdings). With just 30 days left in fiscal year 2010, the US has added $1.54 trillion in the eleven months ended August 31, a monthly average increase of $140 billion. As a point of reference, the US has received $1.53 trillion in withheld income tax over the same period, confirming that the US continues to issue more than one dollar in debt for every dollar it receives via income tax revenue. This balance will likely be tipped soon courtesy of changes to the tax law, which will adversely impact the withheld tax line, implying even more funding has to come in the form of debt.

Additionally, the US rolled another $513 billion in short-term debt: a number which continues to be persistently high, even as the total amount of short term debt as a percentage of total has declined steadily from 30%+ of total to around 20% as we have written elsewhere. Another $106 billion in Notes was rolled as well, with the intramonth cash balance dropping to a dangerous sub-$5 billion.

For the 11 months ending August 30, the US has paid $180 billion in interest expense in a time of record low interest rates.
At the current rate, we expect that the statutory, and completely irrelevant, debt limit of $14.3 trillion will be breached in the first two months of 2011. At that point total federal debt as a % of US GDP will be roughly 100% in its purest definition, and the inevitable greenlighting by Congress to raise the ceiling then will means that America is fully sliding into a debt-to-GDP ratio of >1.

 

brucefan

EOG Dedicated
#73
Re: Glenn Beck - An Inconvenient Debt




It's Official: Fed Is Now Second Largest Holder Of US Treasury Bonds<SUP></SUP>

Submitted by Tyler Durden on 10/06/2010 10:19 -0500




Today's POMO is over: at $2.069 billion, the operation was right in line with our expectations, coming in at a lofty 12.16 submitted to accepted ratio, as investors apparently are not too crazy about the yield perspective of the 4 2013 CUSIPs that were repruchased. However, what is far more important is that with holdings of $821.1 billion, the Fed is now officially the second largest holder of US Treasurys.



One Fed To Monetize It All<SUP></SUP>

Submitted by Tyler Durden on 10/06/2010 18:21 -0500



A few weeks ago we pointed out that the unfortunate but inevitable conclusion of the Fed's embarking on the second round of QE would be that the total treasury purchases between $1.2 and $1.5 trillion, and possible more, would require nothing less than direct purchases from the Treasury. Today, Morgan Stanley's David Greenlaw has confirmed that QE2, launching in less than one month, will mean outright monetization of US debt, even in its gentle and gradual, $100 million a month format: "This pace of buying would be roughly in line with our estimated budget deficit ($1.15 trillion) for fiscal 2011. So, the Fed would be absorbing virtually all of the net new Treasury issuance as long as they maintained this pace of purchases." What is scarier, is that pretty soon the Fed will be the only holder left of Treasuries with a maturity over 10 years: "There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years. So, if the Fed were instead to concentrate their buying in this sector, it could have a powerful impact on long-term yields." The great benefit of monetizing it all, is that the Treasury will be paying all remnant high coupons to the Fed. Which also means that in the future, any retiring individual on fixed income will be forced to buy if not equities in risky companies as a retirement asset, then certainly high yield debt.


MR T WILL BE A WEALTHY MAN

 

brucefan

EOG Dedicated
#74
Re: Glenn Beck - An Inconvenient Debt

Good trivia question to bring up during your thanksgiving day dinner :hung





The Beginning Of The Ponzi End: As Of Today, The Biggest Holder Of US Debt Is Ben Bernanke<SUP></SUP>


Well, folks, it's official - mark November 22, 2010 in your calendars - today is the day the Ponzi starts in earnest.

With today's $8.3 billion POMO monetization, the Fed's official holdings of US Treasury securities now amount to $891.3 billion, which is higher than the second largest holder of US debt: China, which as of September 30 held $884 billion, and Japan, with $864 billion. The purists will claim that the TIC data is as of September 30, and that as the weekly custodial account shows UST buying continues the data is likely not correct. They will be wrong: with the Fed now buying about $30 billion per week, or about $120 billion per month, for the foreseeable future and beyond, it would mean that China would need to buy a comparable amount to be in the standing. It won't. In other words, the Ponzi operation is now complete, and the Fed's monetization of US debt has made it not only the largest holder of such debt, but made external funding checks and balances in the guise of indirect auction bidding, irrelevant. For what tends to happen next in comparable case studies, please read the Dying of Money. And congratulations to China for finally not being the one having the most to lose on a DV01 basis on that day when the inevitable surge in interest rates finally happens. That honor is now strictly reserved for America's taxpayers.
 

brucefan

EOG Dedicated
#76
Re: Glenn Beck - An Inconvenient Debt

As Glenn has said, time to pull in the lifeboats

If you dont get it yet, you never will

If you are stll asleeep, you probably still think cash for clunkers saved us , and our greatest fear is really the rise is the sea levels , and drowning polar bears




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