Weekend Economists' "44 Men 44" Conclusion, February 25-27, 2011

[Demeter]

Last weekend WEE started to review the basics of the 44 men who were elected or otherwise attained the presidency of the United States.

The task proved too massive for even a 3 day weekend, so we will pick up where we left off...President #26 is up next.

But first, consider this item:

The Net Worth Of Every American President, From Washington To Obama: 24/7 Wall Street

http://www.huffingtonpost.com/2011/02/21/the-net-worth-of-the-amer_n_825939.html?page=1

George Washington,the nation's first President, was also one of the wealthiest men to hold the office. His Virginia plantation, "Mount Vernon," consisted of five separate farms on 8,000 acres of prime farmland. Washington made significantly more than subsequent presidents: his salary was two percent of the total U.S. budget in 1789.

(Editor's Note: This article was first published on May 17, 2010. The net worth of any of the Presidents on this list who are no longer living cannot change, except as measured by inflation. The fortune of the presidents who remain living have changed somewhat, but it would be nearly impossible to measure the full effect of that over the last nine months. The value of Bill Clinton's real estate may have risen. Jimmy Carter's publishing royalties may have improved. None of these events is likely to have a substantial effect on the rankings.

The Net Worth of America's Presidents is a study that can be updated from time-time-time, but the figures relative to the passage of a few years will almost certainly never be more than modest.)

Our 16th President, Abraham Lincoln, was not one of America's wealthiest - any opportunity to make money after his term of office was cut short. He was born in a log cabin and served as an attorney for 17 years before his presidency. He owned a single-family home in Springfield, Illinois.

24/7 Wall St. has examined the finances of all forty-three presidents. This article provides net worth figures for each in 2010 dollars. Because a number of presidents, particularly in the early 19th Century, made and lost huge fortunes in a matter of a few years, the number for each man is based on his net worth at its peak...

Well worth the perusal, especially what happened in the recent past!

[Demeter]

1. JUST ONE BANK DOWN AT 7:20 PM EST

Valley Community Bank, St. Charles, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank, Mendota, Illinois, to assume all of the deposits of Valley Community Bank.

The five branches of Valley Community Bank will reopen during their normal business hours beginning Saturday, February 26, as branches of First State Bank...As of December 31, 2010, Valley Community Bank had approximately $123.8 million in total assets and $124.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, First State Bank agreed to purchase essentially all of the assets...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.8 million. Compared to other alternatives, First State Bank's acquisition was the least costly resolution for the FDIC's DIF. Valley Community Bank is the 23rd FDIC-insured institution to fail in the nation this year, and the second in Illinois. The last FDIC-insured institution closed in the state was Community First Bank-Chicago, Chicago, Illinois, on February 4, 2011.

[Demeter]

2. Theodore "Teddy" Roosevelt 26th President of the United States

America has had some very pedestrian presidents, some outright crooks, and then, there have been some Originals: Presidents that any nation would be blessed to have. Teddy Roosevelt, like Abraham Lincoln, is one of those Originals, as the Regency novel describes them:

fresh and unusual; novel
able to think of or carry out new ideas or concepts
a person whose way of thinking is unusual or creative
an unconventional or strange person

Theodore Roosevelt...October 27, 1858 – January 6, 1919) was the 26th President of the United States. He is noted for his energetic personality, range of interests and achievements, leadership of the Progressive Movement, and his "cowboy" image and robust masculinity.<4> He was a leader of the Republican Party and founder of the short-lived Progressive ("Bull Moose") Party of 1912. Before becoming President (1901–09), he held offices at the municipal, state, and federal level of government. Roosevelt's achievements as a naturalist, explorer, hunter, author, and soldier are as much a part of his fame as any office he held as a politician.

Born into a wealthy family, Roosevelt was an unhealthy child who suffered from asthma and stayed at home studying natural history. In response to his physical weakness, he embraced a strenuous life. He was home-schooled and became a passionate student of nature. He attended Harvard, where he boxed and developed an interest in naval affairs. In 1881, one year out of Harvard, he was elected to the New York State Assembly as its youngest member. Roosevelt's first historical book, The Naval War of 1812 (1882), established his professional reputation as a serious historian. After a few years of living in the Badlands, Roosevelt returned to New York City, where he gained fame for fighting police corruption. The Spanish–American War broke out while Roosevelt was, effectively, running the Department of the Navy. He promptly resigned and led a small regiment in Cuba known as the Rough Riders, earning himself a nomination for the Medal of Honor, which was received posthumously on his behalf on January 16, 2001. After the war, he returned to New York and was elected Governor in a close-fought election. Within two years, he was elected Vice President of the United States.

In 1901, President William McKinley was assassinated; and Roosevelt became President at the age of 42, taking office at the youngest age of any U.S. President in history.<5> Roosevelt attempted to move the Republican Party in the direction of Progressivism, including trust busting and increased regulation of businesses. Roosevelt coined the phrase "Square Deal" to describe his domestic agenda, emphasizing that the average citizen would get a fair share under his policies. As an outdoorsman and naturalist, he promoted the conservation movement. On the world stage, Roosevelt's policies were characterized by his slogan, "Speak softly and carry a big stick". Roosevelt was the force behind the completion of the Panama Canal; he sent out the Great White Fleet to display American power; and he negotiated an end to the Russo-Japanese War, for which he won the Nobel Peace Prize.<6> Roosevelt was the first American to win the Nobel Prize in any field.

Roosevelt declined to run for re-election in 1908. After leaving office, he embarked on a safari to Africa and a tour of Europe. On his return to the US, a bitter rift developed between Roosevelt and his anointed successor as President, William Howard Taft. Roosevelt attempted in 1912 to wrest the Republican nomination from Taft, and when he failed, he launched the Bull Moose Party. In the election, Roosevelt became the only third party candidate to come in second place, beating Taft but losing to Woodrow Wilson. After the election, Roosevelt embarked on a major expedition to South America; the river on which he traveled now bears his name. He contracted malaria on the trip, which damaged his health, and he died a few years later, at the age of 60. Roosevelt has consistently been ranked by scholars as one of the greatest U.S. Presidents...

http://en.wikipedia.org/wiki/Theodore_Roosevelt

[Demeter]

4. ROOSEVELT Genealogy

The Roosevelt family, immigrants of Dutch origin, had been in New York since the mid-17th century. Roosevelt was born into considerable wealth, for the family, by the 19th century, had grown in wealth, power and influence from the profits of several businesses, including hardware and plate-glass importing. The family was strongly Democratic in its political affiliation until the mid-1850s, then joined the new Republican Party. Theodore's father, known in the family as "Thee", was a New York City philanthropist, merchant, and partner in the family glass-importing firm Roosevelt and Son. "Father," as the children called him, was an ardent Unionist, a prominent supporter of Abraham Lincoln and the Union effort during the American Civil War. His mother Martha "Mittie" Bulloch was a Southern belle from a slave-owning family in Roswell, Georgia and maintained Confederate sympathies. Mittie's brother, Theodore's uncle, James Dunwoody Bulloch, was a United States Navy officer who became a Confederate admiral and naval procurement officer and secret agent in Britain. Another uncle, Irvine Bulloch, was a midshipman on the Confederate raider CSS Alabama; both remained in England after the war....

Theodore, Sr. had a tremendous influence on his son, of whom Roosevelt wrote, "My father, Theodore Roosevelt, was the best man I ever knew. He combined strength and courage with gentleness, tenderness, and great unselfishness. He would not tolerate in us children selfishness or cruelty, idleness, cowardice, or untruthfulness."

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5. INTEGRITY IN public life

In the 1888 presidential election, Roosevelt campaigned in the Midwest for Benjamin Harrison. President Harrison appointed Roosevelt to the United States Civil Service Commission, where he served until 1895. In his term, Roosevelt vigorously fought the spoilsmen and demanded enforcement of civil service laws. Close associate, friend and biographer, Joseph Bucklin Bishop, described Roosevelt's assault on the spoils system indicating that,

The very citadel of spoils politics, the hitherto impregnable fortress that had existed unshaken since it was erected on the foundation laid by Andrew Jackson, was tottering to its fall under the assaults of this audacious and irrepressible young man.... Whatever may have been the feelings of the (fellow Republican party) President (Harrison) — and there is little doubt that he had no idea when he appointed Roosevelt that he would prove to be so veritable a bull in a china shop—he refused to remove him and stood by him firmly till the end of his term.

During this time, the New York Sun described Roosevelt as "irrepressible, belligerent, and enthusiastic"

In spite of Roosevelt's support for Harrison's reelection bid in the presidential election of 1892, the eventual winner, Grover Cleveland (a Bourbon Democrat), reappointed him to the same post.

[Demeter]

6. Emergence as a national figure

Assistant Secretary of the Navy

Roosevelt had always been fascinated by naval history. Urged by Roosevelt's close friend, Congressman Henry Cabot Lodge, President William McKinley appointed a delighted Roosevelt to the post of Assistant Secretary of the Navy in 1897. Because of the inactivity of Secretary of the Navy John D. Long at the time, this gave Roosevelt control over the department. When, ten days after a battleship was blown up in Havana, Cuba, the Secretary left for an afternoon for a massage and Roosevelt became Acting Secretary for four hours, Roosevelt told the Navy worldwide to prepare for war, ordered ammunition and supplies, brought in experts, and went to Congress asking for authority to recruit as many sailors as he wanted, thus moving the nation toward war.<35> Roosevelt was instrumental in preparing the Navy for the Spanish-American War<36> and was an enthusiastic proponent of testing the U.S. military in battle, at one point stating "I should welcome almost any war, for I think this country needs one".<37><38>
Col. Theodore Roosevelt
War in Cuba

Upon the 1898 Declaration of War launching the Spanish-American War, Roosevelt resigned from the Navy Department. With the aid of U.S. Army Colonel Leonard Wood, Roosevelt found volunteers from cowboys from the Western territories to Ivy League friends from New York, forming the First U.S. Volunteer Cavalry Regiment. The newspapers called them the "Rough Riders."

Originally Roosevelt held the rank of Lieutenant Colonel and served under Colonel Wood. In Roosevelt's own account, The Rough Riders, "after General Young was struck down with the fever, and Wood took charge of the brigade. This left me in command of the regiment, of which I was very glad, for such experience as we had had is a quick teacher."<39> Accordingly, Wood was promoted to Brigadier General of Volunteer Forces, Roosevelt was promoted to Colonel and given command of the Regiment.<39>
Colonel Roosevelt and the Rough Riders after capturing San Juan Hill

Under his leadership, the Rough Riders became famous for dual charges up Kettle Hill and San Juan Hill on July 1, 1898 (the battle was named after the latter "hill," which was the shoulder of a ridge known as San Juan Heights). Out of all the Rough Riders, Roosevelt was the only one with a horse – the troopers' horses had been left behind because transport ships were in short supply – and used it to ride back and forth between rifle pits at the forefront of the advance up Kettle Hill; an advance which he urged in absence of any orders from superiors. However, he was forced to walk up the last part of Kettle Hill on foot, due to barbed wire entanglement and after his horse, Little Texas, became tired.

For his actions, Roosevelt was nominated for the Medal of Honor which was subsequently disapproved. As historian John Gable wrote, "In later years Roosevelt would describe the Battle of San Juan Hill on July 1, 1898, as 'the great day of my life' and 'my crowded hour.'.... (but) Malaria and other diseases now killed more troops than had died in battle. In August, Roosevelt and other officers demanded that the soldiers be returned home. The famous 'round robin letter', and a stronger letter by Roosevelt – now acting brigade commander<40> – were leaked to the press by the commanding general, enraging Secretary of War, Russell Alger and President McKinley. Roosevelt believed that it was this incident that cost him the Medal of Honor."<41>
Medal of Honor

In September 1997, Congressman Rick Lazio, representing the 2nd District of New York, sent two award recommendations to the U.S. Army Military Awards Branch. These recommendations, addressed to Brigadier General Earl Simms, the Army's Adjutant General, and Master Sergeant Gary Soots, Chief of Authorizations, would prove successful in garnering the much sought after award.<42> Roosevelt was posthumously awarded the Medal of Honor in 2001 for his actions.<43> The medal is currently on display in the Roosevelt Room of the White House.<44> He was the first and, thus far, the only President of the United States to be awarded with America's highest military honor, and the only person in history to receive both his nation's highest honor for military valor and the world's foremost prize for peace.<45> His oldest son, Theodore Roosevelt, Jr., would also posthumously be awarded the Medal of Honor for his actions at Normandy on June 6, 1944.<46>

After his return to civilian life, Roosevelt preferred to be known as "Colonel Roosevelt" or "The Colonel." As a moniker, "Teddy" remained much more popular with the general public, despite the fact he found it vulgar and called it "an outrageous impertinence." Political friends and others working closely with Roosevelt customarily addressed him by his rank.

[Demeter]

9. Presidency 1901–1909 THE TRUST-BUSTER

On September 6, President McKinley was shot while at the Pan-American Exposition in Buffalo, New York. Initial reports in the succeeding days suggested his condition was improving, so Roosevelt embarked on a vacation at Mount Marcy in north-eastern New York. He was returning from a climb to the summit on September 13 when a park ranger brought him a telegram informing him that McKinley's condition had deteriorated, and he was near death.

Roosevelt and his family immediately departed for Buffalo. When they reached the nearest train station at North Creek, at 5:22 a.m. on September 14, he received another telegram that McKinley had died a few hours earlier. Roosevelt arrived in Buffalo that afternoon, and was sworn in there as President at 3:30 p.m.

Roosevelt kept McKinley's cabinet and promised to continue McKinley's policies. One of his first notable acts as president was to deliver a 20,000-word address to Congress asking it to curb the power of large corporations (called "trusts"). For his aggressive attacks on trusts over his two terms he has been called a "trust-buster."

In the 1904 presidential election, Roosevelt won the presidency in his own right in a landslide victory. His vice president was Charles Fairbanks.

Roosevelt dealt with union workers also. In May 1902, United Mine Workers went on strike to get higher pay wages and shorter work days. He set up a fact-finding commission which stopped the strike, and resulted in the workers getting more pay for fewer hours.

In August 1902, Roosevelt was the first president to be seen riding in an automobile in public. This took place in Hartford, CT. The car was a Columbia Electric Victoria Phaeton, manufactured in Hartford. The police squad which surrounded the car rode bicycles. (The reference includes a photo of the event.)

In 1905, he issued a corollary to the Monroe Doctrine, which allows the United States to "exercise international policy power" so they can intervene and keep smaller countries on their feet.

In his book The Imperial Cruise (2009), author James Bradley reveals that in 1905 Roosevelt encouraged the Japanese to begin their military expansion onto the Asian continent when the president agreed a secret treaty that allowed Japan to take Korea. Bradley asserts that with this secret and unconstitutional maneuver, Roosevelt inadvertently ignited the problem (Japanese expansionism in Asia) that Franklin Delano Roosevelt would later confront as World War II in Asia. The New York Times published a complementary review, writing that "The Imperial Cruise is startling enough to reshape conventional wisdom about Roosevelt’s presidency."

Roosevelt helped the well-being of people by passing laws such as The Meat Inspection Act of 1906 and The Pure Food and Drug Act. The Meat Inspection Act of 1906 banned misleading labels and preservatives that contained harmful chemicals. The Pure Food and Drug Act banned food and drugs, that are impure or falsely labeled, from being made, sold, and shipped.

The Gentlemen's Agreement with Japan came into play in 1907, banning all school segregation of Japanese, yet controlling Japanese immigration in California. That year, Roosevelt signed the proclamation establishing Oklahoma as the 46th state of the Union.

Building on McKinley's effective use of the press, Roosevelt made the White House the center of news every day, providing interviews and photo opportunities. After noticing the White House reporters huddled outside in the rain one day, he gave them their own room inside, effectively inventing the presidential press briefing. The grateful press, with unprecedented access to the White House, rewarded Roosevelt with ample coverage.

He chose not to run for another term in 1908, and supported William Taft for the presidency, instead of Fairbanks. Fairbanks withdrew from the race, and would later support Taft for re-election against Roosevelt in the 1912 election.

[Demeter]

3. PayPal Freezes Account of "Courage to Resist" After Organization Gets Involved with Bradley Manning

http://fdlaction.firedoglake.com/2011/02/24/paypal-freezes-account-of-courage-to-resist-after-organization-gets-involved-with-bradley-manning-petition/

The organization Courage to Resist has had a PayPal account since 2006 to allow supporters to make donations. They claim to have had few issues with PayPal over the years–until recently. Soon after encouraging people to use the online payment service to make donations to help fund the “Stand with Bradley Manning” petition effort, that account was frozen by PayPal. From Courage to Resist:

The online payment provider PayPal has frozen the account of Courage to Resist, which in collaboration with the Bradley Manning Support Network is currently raising funds in support of U.S. Army Pfc. Bradley Manning. PayPal was one way people–especially international residents–were able to contribute to the grassroots effort supporting the accused WikiLeaks whistleblower. “We’ve been in discussions with PayPal for weeks, and by their own admission there’s no legal obligation for them to close down our account,” noted Loraine Reitman of the Bradley Manning Support Network (Support Network). “This was an internal policy decision by PayPal.”

“We exchanged numerous emails and phone calls with the legal department and the office of executive escalations of PayPal,” explained Jeff Paterson. “They said they would not unrestrict our account unless we authorized PayPal to withdraw funds from our organization’s checking account by default. Our accounting does not allow for this type of direct access by a third party, nor do I trust PayPal as a business entity with this responsibility given their punitive actions against WikiLeaks—an entity not charged with any crime by any government on Earth.”

The Support Network repeatedly requested and was refused formal documentation from PayPal describing their policies in this matter.

I HAVE USED PAYPAL AS A CONVENIENCE, BUT FRANKLY, I'M RETHINKING THIS...WHAT MAKES THEM RELIABLE AND SECURE, IF THEY PULL THIS KIND OF SHIT?

[Fuddnik]

39. Paypal alternatives.

http://www.screw-paypal.com/alternatives/alternatives.html

[Demeter]

7. Lex Duvalier: A Corrupt Politician’s Worst Nightmare

http://www.truth-out.org/lex-duvalier-a-corrupt-politicians-worst-nightmare68055

On February 1, 2011, the Swiss Restitution of Illicit Assets Act (RIAA), commonly referred to as “Lex Duvalier,” came into effect. This law provides for the freezing, forfeiture, and restitution of assets of politically exposed persons or their close associates. It applies in cases where a request for mutual assistance in criminal law matters cannot produce an outcome owing to the failure of state structures in the requesting state (the politically exposed person’s country of origin). The former leader of Haiti, Jean-Claude Duvalier, whose USD 6.2 million has been frozen in a Swiss bank account since 1986, will now have to return the money to its rightful owners—namely, the Haitian people. In a recent interview, Swiss attorney Enrico Monfrini, who represents the Haitian government in the legal battle, noted that, “Duvalier’s 6.2 million in Swiss banks is not a large amount compared with the hundreds of millions the former leader allegedly stole, but morally, repatriation of the money would be a huge victory.”1

Under the RIAA, in order for a judge to order restitution of frozen accounts, a request for mutual assistance must be initiated by the country of origin. Or, it must be established that the country is unable to satisfy this requirement because of corruption or inadequate state institutions.2 In either case, the frozen accounts in question must belong to a politically exposed person, such as a head of government, high-ranking politician, or senior member of any other branch of government. Persons closely associated with politically exposed individuals are also open for prosecution under the law.3

During his term in office from 1971 until the popular uprising in 1986, Duvalier enjoyed an ostentatious lifestyle that included indulgences such as a government-sponsored wedding valued at USD 3 million. Beyond living a life of luxury, Duvalier is accused of corruption, misuse of power, and human rights abuses—charges that were brought against him following his recent arrest when he returned to Haiti on January 17th. Unfortunately, Duvalier was released from police custody after a four-hour interrogation, leaving it to be determined at a later date.

Pursuant to the RIAA, the unlawful origin of assets is presumed when an accountholder 1) enjoys a drastic increase in personal wealth in connection to holding political office, and 2) resides in a country or region with a high level of acknowledged corruption. Both criteria apply in the case of Duvalier...

[Demeter]

8. Britain to Seize Gadhafi’s Billions

http://www.truthdig.com/eartotheground/item/britain_to_sieze_gadhafis_billions_20110224/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Truthdig%2FEarToTheGround+Truthdig+|+Ear+to+the+Ground

The British treasury suspects that Col. Moammar Gadhafi and his government have more than $30 billion stashed in the U.K., and British authorities are prepared to seize those assets in an effort to force the dictator to step down.

The Telegraph via WikiLeaks:

The funds are expected to be seized within days. The Treasury is understood to have set up a unit to trace Col Gaddafi’s assets in Britain, which are thought to include billions of dollars in bank accounts, commercial property and a £10 million mansion in London.

In total, the Libyan regime is said to have around £20 billion in liquid assets, mostly in London. These are expected to be frozen as part of an international effort to force the dictator from power. A Whitehall source said: “The first priority is to get British nationals out of Libya. But then we are ready to move in on Gaddafi’s assets, the work is under way. This is definitely on the radar at the highest levels.”

MORE AT THIS LINK:

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/libya/8346701/Libya-Gaddafis-billions-to-be-seized-by-Britain.html

[Demeter]

35. Yves Smith Notes:

Hhhm. He must not have gotten the money into the offshore part of British banking. If you do it correctly, it is apparently not traceable. Gaddafi seems to be very much in denial about the idea that he could be ousted.

[Demeter]

10. SEE YOU ALL IN THE AM

Can't keep my eyes open...been cycling those wine stocks.

[Viva_La_Revolution]

11. kick!

[Demeter]

12. The West's Faustian Pact on Oil Comes Home to Roost

From rising food prices contributing to unrest in Egypt and Tunisia to the role of peak oil and poverty in sparking the Egyptian revolution, there's been plenty of discussion here on TreeHugger about what all the turmoil in North Africa and the Middle East means for sustainability. But we're not the only ones. I've just come across a powerful Leader article over at The Independent that exposes the West's vulnerability to oil price volatility. We have, says The Independent, only ourselves to blame:

"The world is reaping the consequences of bad geopolitical decisions going back decades. After the Second World War, the West entered into a Faustian bargain with autocratic Middle Eastern regimes. We would buy their oil exports and turn a blind eye to the repression of their populations. In return, they would buy Western-manufactured weapons and luxury goods. China has made a similar bargain with repressive regimes more recently. But the Arab revolutions are upsetting those deals."

Nothing new here of course, but the case is powerfully made. One can only hope that the conclusion turns out to be true—that the uprisings in the Middle East might finally cement our resolve to pursue energy independence. Anything else would be too depressing, and too stupid, for words.

http://www.alternet.org/newsandviews/article/485838/the_west%27s_faustian_pact_on_oil_comes_home_to_roost/#paragraph2

[Demeter]

24. Obama announces Libya sanctions

PARDON MY SKEPTICISM, BUT THIS SEEMS AN OVER-REACTION, IF NOT OUTRIGHT BUTTING IN WHERE YOU DON'T BELONG...WE MUST BE PROTECTING AN OIL FIELD FOR A CORPORATE CRONY...AGAIN.

http://www.bbc.co.uk/news/world-africa-12585949

The US has announced sanctions against the Libyan government, as UN Secretary General Ban Ki-moon urged the body's Security Council to take "decisive action" over the Libya crisis.

US President Barack Obama signed an executive order blocking property and transactions related to the country.

Transactions involving assets of Muammar Gaddafi and some close associates were blocked.

Libya's UN envoy deserted him in dramatic scenes in New York...

[Demeter]

29. Geithner: "Not To Worry About Surging Oil Prices:Central Banks Have Lot Of Experience Managing"

Geithner Says Not To Worry About Surging Oil Prices: "Central Banks Have A Lot Of Experience In Managing These Things"

http://www.zerohedge.com/article/geithner-says-not-worry-about-surging-oil-prices-central-banks-have-lot-experience-managing-?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+surv

You really can't make this shit up: "The economy is in a much stronger position to handle” rising oil prices, Tim Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things." We are, all of us, now doomed.

Bloomberg's account of one lunatic's daily ramblings in a collapsing world:

U.S. Treasury Secretary Timothy F. Geithner said the economic recovery has put the world on a better footing to withstand the increase in oil prices caused by turmoil in the Middle East.

“The economy is in a much stronger position to handle” rising oil prices, Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things.”

Political turmoil in Libya, holder of Africa’s largest oil reserves, will add “stagflationary winds” to the global economy, according to Mohamed El-Erian, chief executive officer at Pacific Investment Management Co. Protests in Libya pose more “systemic” risk to the global economy than the upheaval in Egypt and Tunisia, El-Erian said in a Bloomberg Television interview yesterday.

Geithner also said the U.S. financial system is in better shape than before the recession and is able to provide the funding needed for the expansion.

“The core of the American financial system is in a much stronger position than it was before the crisis,” he said. “We’re way ahead of any other major economy.”

And if the confirmation that we have a lunatic in charge was not enough, here is the punchline:

“The economy is gradually getting stronger,” Geithner said today, adding “I wouldn’t get carried away with it.”

Don't worry TurboTax, you will get carried away... by a mob of unruly protestors who finally realize that Libya was not an isolated incident.

[Demeter]

30. Half Of Libyan Oil Production, Or 800,000 Barrels, Now Offline

http://www.zerohedge.com/article/half-libyan-oil-production-or-800000-barrels-now-offline?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero

Our advice to Italy, which imports 425,000 barrels of oil each day from Tripoli: "Panic." Following yesterday's Force Majeure announcement from Libya which meant that oil production and exports will continue only for a few more days, the FT now reports that over half of Libya's production, or about 800,000 barrels is now offline. As Libya accounts for ~2% of global oil exports, this means that 1% of world oil output has just been removed. And to all those who claim that excess OPEC capacity can be easily substituted, sorry it can't - Libyan crude is far higher in quality than the general muck, meaning it is not a simple apples for apples replacement. From the FT: "Industry executives told the Financial Times that at least half of Libya’s 1.6m barrels a day oil output had been closed down. They cautioned, however, that they could only estimate the total outage since they did not have direct knowledge of production at their competitors’ oilfields." And if Nomura's earlier call is correct that a combined Libya-Algeria oil stoppage will result in the doubling of crude prices (and one can only imagine what happens if Saudi is thrown into the fray), then our January call for "higher" oil may lead to some very tidy profits. In the meantime, we expect the partial Libyan oil closure to reach 100% shortly.

[AnneD]

49. And a good....

pick pocket has lots of experience lifting wallets.

Folks I see this as a major effort to keep us calm. Look for the shit to soon be hitting the fan-2 minute warning!

[Demeter]

13. The Great Depression and The New Depression

A worldwide economic depression began in 2008. This New Depression was caused by the same factors as the Great Depression and followed exactly the same pattern. Thus far, however, the New Depression has been milder than the Great Depression because the policy response this time has been completely different.

Both depressions were caused because governments began creating money. The Great Depression originated with the collapse of the gold standard in 1914. The New Depression had its origins in the 1971 breakdown of the Bretton Woods system. In the earlier period, the gold standard collapsed because the European nations created more credit to finance World War I than could be supported by their gold reserves. Similarly, the Bretton Woods system broke down because the United States created more credit to finance the Vietnam War abroad and social welfare spending at home than could be underwritten by American gold reserves.

In both instances, a great economic boom was brought about by an explosion of credit creation; and in both instances the boom turned to bust when that credit could not be repaid. At that point, a systemic crisis brought down the international banking system. Immediately thereafter international trade collapsed.

The Great Depression & The New Depression

1. Gold Standard Breaks Down (1914) = Bretton Woods Breaks Down (1971)

2. Credit Boom: The Roaring Twenties = Credit Boom: Global Economic Bubble

3. Boom Leads to Bust When The Credit Can’t Be Repaid (1930 and 2008)

4. Banking Collapse (1930 and 2008)

5. International Trade Collapses (1930 and 2008)

During the 1930s, the forces of creative destruction, largely unimpeded by government intervention, ravaged the global economy as the excesses produced by the credit boom bankrupted a civilization unable to repay its debts. This time governments have intervened and, in effect, taken over the management of the economy to prevent market forces from correcting the imbalances brought about by the paper money-induced credit bubble. The commanding heights of global finance have been nationalized or bailed out, either openly or furtively, while the broader economy is sustained by government life support.

Thus far, these measures have greatly mitigated the pain of the New Depression. However, the policies introduced to date have not resolved the causes of this crisis or even targeted them. Moreover, government resources, while vast, are finite. Government spending will not be able to carry the economy forever. Policymakers must aim to do more than simply perpetuate the existing global economic disequilibrium. So far, there is little indication they understand the origins of the crisis, much less how to permanently end it.

Read more: The Great Depression and The New Depression http://dailyreckoning.com/the-great-depression-and-the-new-depression/#ixzz1F3dUo6Ho

I DON'T AGREE WITH HIS TIMELINE--1971 WAS NOT THE START OF THIS CRASH--THE BANKING FRAUDS AND DEREGULATIONS OF FIRST SAVINGS AND LOANS AND THEN GLASS-STEAGAL IN THE 80'S, AND LATE 90'S, PLUS THE MASSIVE DERIVATIVE FRAUDS, GENERATED THE GLOBAL BUBBLE.

BUT GOLD BUGS WILL DISTORT ANYTHING TO FIT THEIR VERY NARROW VIEWPOINTS...

IT IS BANKING CRIME, NOT GOLD STANDARDS, BEHIND EVERY ECONOMIC UPSET--EXCEPT WHEN NATURAL DISASTERS STRIKE (SOME OF WHICH, LIKE THE DUST BOWL, DIRECTLY ATTRIBUTABLE TO HUMAN ERROR)

[Demeter]

14. Saudi ‘Royal gift’ fails to woo activists

Saudi Arabia’s $35bn “royal gift” in social, unemployment and housing benefits – aimed at averting the spread of popular dissent that felled the Egyptian and Tunisian leaders – has failed to satisfy activists’ demands for reform

Read more >>
http://link.ft.com/r/FG6LAA/XTJ16O/9MEOW/PRXQFE/IYVQPZ/LE/t?a1=2011&a2=2&a3=25

BECAUSE PEOPLE CANNOT LIVE ON BREAD ALONE--NOR ON JUST A HOPE FOR CHANGE

[Demeter]

15. White House rejects shutdown fear

The Obama administration is rejecting suggestions a budgetary deadlock in Congress will lead to a government shutdown as early as March 4

Read more >>
http://link.ft.com/r/FG6LAA/XTJ16O/9MEOW/PRXQFE/BMBWQI/LE/t?a1=2011&a2=2&a3=25

I'VE SEEN THIS MOVIE BEFORE....BUT THIS TIME, WHO IS GOING TO LOOK LIKE THE FOOL?

[Demeter]

22. Parties Eye Deal to Avert Shutdown

http://online.wsj.com/article/SB10001424052748704150604576166573203604238.html?mod=WSJ_myyahoo_module

The outlines of a plan to avoid a possible government shutdown began to emerge Friday evening, as Democrats reacted with cautious optimism to a Republican proposal to delay discussion of some of the most contentious budget cuts demanded by GOP lawmakers in the House.

Lawmakers have funded government operations only through March 4 and are running out of time to resolve deep divisions over a spending plan for the remainder of the fiscal year. Without a deal, many government services would be halted March 5, and hundreds of thousands of federal workers likely would be furloughed.

The plan from House Republicans would fund the government for two additional weeks, giving lawmakers more time to come to agreement on a plan for the full year.

The plan retains a Republican demand for immediate budget cuts—totaling $4 billion—but says those cuts would come from programs selected by President Barack Obama, rather than from an extensive list of cuts that the House GOP has approved over Democratic objections. Republicans say the $4 billion is a first step toward $61 billion in budget cuts they want to make in the current fiscal year, which ends Sept. 30...

THEY ARE ASKING FOR A REVOLUTION, AND I'M MORE AND MORE SURE THEY WILL GET IT.

[Demeter]

16. Top Republicans shy away from presidency bids

More prominent Republicans have taken themselves out of contention for the 2012 US presidential race than have officially joined the contest to challenge Barack Obama
Read more >>
http://link.ft.com/r/FG6LAA/XTJ16O/9MEOW/PRXQFE/C5GX96/LE/t?a1=2011&a2=2&a3=25

AFTER ALL, WHAT'S IN IT FOR THEM?

THE PAY IS LOUSY, THE HOURS ARE WORSE, OBAMA IS DOING EVERYTHING THEY WANT, AND VERY BADLY, TOO--LET HIM TAKE THE PUNISHMENT. THE GOP WILL THAT THE PRIVATE SECTOR LOOTING.

[Demeter]

17. US banks brace for interest rate rises

The country’s largest lenders are being warned by regulators to prepare for increasing interest rates, which some officials see as a threat to the financial industry’s recovery

Read more >>
http://link.ft.com/r/73UJGG/D40ZMY/9MEOW/OJWEJS/UUYT54/N9/t?a1=2011&a2=2&a3=25

WARNED BY WHOM, YOU MAY ASK?

SHEILA BAIR, FDIC

I NEVER KNEW THE FDIC SET INTEREST RATES...

VERY STRANGE ARTICLE. WHAT ACTUALLY IS SAID BY MS. BAIR IS THAT THE BANKS ARE IN NO WAY READY FOR FUTURE INTEREST RATE INCREASES, AND THEY BETTER GET RELIGION FAST. ALSO MORE CAPITAL.

[Demeter]

18. The Solution to Our Budget Problems Is So Obvious: We Need to Raise Taxes on the Rich, ASAP

http://www.alternet.org/story/150055/the_solution_to_our_budget_problems_is_so_obvious%3A_we_need_to_raise_taxes_on_the_rich%2C_asap?page=entire


A great tragedy of the United States is that the answer to many of the country’s domestic problems is obvious, even simple, but can’t be done because of a dominating political/media dynamic that rules that solution out.

The solution to these many problems – from the budget deficit to crumbling infrastructure, from mass joblessness to income inequality, from environmental degradation to educational shortfalls -- is to raise taxes on the rich and to use that money to get the United States back on track and advancing toward the future.

And there are clear justifications for doing so, from practicality to fairness. Though many multi-millionaires fancy themselves self-made men (and women), the truth is that they all have profited from investments that American taxpayers have made over the decades, and even centuries.

For instance, President Dwight Eisenhower’s inter-state highway system enabled companies to move their goods more cheaply; President John Kennedy’s space program spurred the growth in computer sciences; the Pentagon created the Internet (yes, with critical support from Al Gore when in Congress), which revolutionized commerce and spread information.

These innovations and many more were achieved by the federal government using taxpayers’ money. Yes, entrepreneurs in their garages and dorm rooms did expand on these breakthroughs and deserve credit and a share of the profits, but they also should pay back at a much higher rate for the taxpayer-funded R&D that made their fortunes possible...

[Demeter]

19. Sovereigns turn to pre-crisis financial wizardry

Demonised following the 2008 crisis, derivatives, along with structured finance and hedge funds, have been increasingly embraced by countries to help them out of crisis

Read more >>
http://link.ft.com/r/DHGUVV/HDAW1U/ULCJB/8AHOVW/HDCEQU/4O/t?a1=2011&a2=2&a3=25

[Demeter]

20. THE VIDEO STORE

MAX KEISER:

GLOBAL REVOLUTION: http://vodpod.com/watch/5603951-on-the-edge-with-max-keiser-global-revolution-02-18-2011-part1?u=ampedstatuscom&c=ampedstatus

MAX'S GUEST GIVES US 6 MONTHS TO REVOLUTION. THAT'S AUGUST--ARE WE STILL HAVING A POOL?

PART 2: http://vodpod.com/watch/5603951-on-the-edge-with-max-keiser-global-revolution-02-18-2011-part1?u=ampedstatuscom&c=ampedstatus

PART3: http://vodpod.com/watch/5603951-on-the-edge-with-max-keiser-global-revolution-02-18-2011-part1?u=ampedstatuscom&c=ampedstatus

HIGHLY RECOMMENDED VIEWING!!

Fed's Reign of Terror: http://vodpod.com/watch/5626820-keiser-report-feds-reign-of-terror-e123?u=ampedstatuscom&c=ampedstatus

ANOTHER GOOD VIEW



Daily Show: American 3rd World Workforce Makeover: IF YOU LIKE YOUR HUMOR WRY

http://vodpod.com/watch/5622890-daily-show-american-3rd-world-workforce-makeover?u=ampedstatuscom&c=ampedstatus

[Demeter]

21. 'I won't pay' movement spreads across Greece

http://www.msnbc.msn.com/id/41723432/ns/business-world_business/

They blockade highway toll booths to give drivers free passage. They cover subway ticket machines with plastic bags so commuters can't pay. Even doctors are joining in, preventing patients from paying fees at state hospitals.

Some call it civil disobedience. Others a freeloading spirit. Either way, Greece's "I Won't Pay" movement has sparked heated debate in a nation reeling from a debt crisis that's forced the government to take drastic austerity measures — including higher taxes, wage and pension cuts, and price spikes in public services.

What started as a small pressure group of residents outside Athens angered by higher highway tolls has grown into a movement affecting ever more sectors of society — one that many say is being hijacked by left-wing parties keen to ride popular discontent.

A rash of political scandals in recent years, including a dubious land swap deal with a rich monastery and alleged bribes in state contracts — has fueled the rebellious mood...

THE TOTAL BREAKDOWN BEGINS

[Demeter]

23. Shock Doctrine, U.S.A. By PAUL KRUGMAN

http://www.nytimes.com/2011/02/25/opinion/25krugman.html

Here’s a thought: maybe Madison, Wis., isn’t Cairo after all. Maybe it’s Baghdad — specifically, Baghdad in 2003, when the Bush administration put Iraq under the rule of officials chosen for loyalty and political reliability rather than experience and competence.

As many readers may recall, the results were spectacular — in a bad way. Instead of focusing on the urgent problems of a shattered economy and society, which would soon descend into a murderous civil war, those Bush appointees were obsessed with imposing a conservative ideological vision. Indeed, with looters still prowling the streets of Baghdad, L. Paul Bremer, the American viceroy, told a Washington Post reporter that one of his top priorities was to “corporatize and privatize state-owned enterprises” — Mr. Bremer’s words, not the reporter’s — and to “wean people from the idea the state supports everything.”

The story of the privatization-obsessed Coalition Provisional Authority was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.

Which brings us to Wisconsin 2011, where the shock doctrine is on full display... What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside...For example, the bill includes language that would allow officials appointed by the governor to make sweeping cuts in health coverage for low-income families without having to go through the normal legislative process. And then there’s this:

“Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).”

What’s that about? The state of Wisconsin owns a number of plants supplying heating, cooling, and electricity to state-run facilities (like the University of Wisconsin). The language in the budget bill would, in effect, let the governor privatize any or all of these facilities at whim. Not only that, he could sell them, without taking bids, to anyone he chooses. And note that any such sale would, by definition, be “considered to be in the public interest.”

If this sounds to you like a perfect setup for cronyism and profiteering — remember those missing billions in Iraq? — you’re not alone. Indeed, there are enough suspicious minds out there that Koch Industries, owned by the billionaire brothers who are playing such a large role in Mr. Walker’s anti-union push, felt compelled to issue a denial that it’s interested in purchasing any of those power plants. Are you reassured?

[Demeter]

25. OR, AS OLIPHANT PUTS IT:

http://imgsrv.gocomics.com/dim/?fh=f13e0e22c4cda69691138591276c9cb7&w=750.0

[Demeter]

28. Four Possible Endgames in Wisconsin

http://motherjones.com/politics/2011/02/wisconsin-scott-walker-republican-endgame?utm_source=feedburner

Will the massive labor protests in Madison end with a union victory, Republican trickery, or a stalemate?

— By Andy Kroll


Outcome #1: The state Senate Democrats return to Wisconsin, and Walker's union-busting bill passes...

Outcome #2: Governor Walker and the Republicans ditch the collective-bargaining ban...

Outcome #3: Walker and Senate Republicans could use a constitutional end-run to pass the budget repair bill...

Outcome #4: Walker could put off the final fight over collective bargaining until spring...

SEE THE ARGUMENTS AT LINK

I'D PUT MY MONEY ON THE UGLIEST, MOST FASCIST CHOICE--#3.

[Demeter]

26. Buying Bad Debt to Return Bank Solvency By Bill Bonner

Here’s the report from Bloomberg:

The US financial system is in better shape than it was before the recession and is well placed to provide the funding needed for the economic expansion, Treasury Secretary Timothy F. Geithner said.

“The core of the American financial system is in a much stronger position than it was before the crisis,” Geithner said today during a Bloomberg Breakfast with reporters in Washington.

US banks had net income of $87.5 billion in 2010, the highest since 2007, the Federal Deposit Insurance Corp. said today. The Standard & Poor’s 500 index has jumped 64 percent since March 2009, and corporate bond spreads have narrowed.

“We can say with much more confidence now that the US banking system and the US capital market are much more likely to be in a position to finance the capital needs that come with a recovery,” Geithner said.

Oh stop it, Tim. How much more can we take?

...In a real recovery, people have jobs. In a phony one, they don’t.

Read more: Buying Bad Debt to Return Bank Solvency http://dailyreckoning.com/buying-bad-debt-to-return-bank-solvency/#ixzz1F4XZyh37

[Demeter]

27. William Howard Taft 27TH PRESIDENT

William Howard Taft (September 15, 1857 – March 8, 1930) was the 27th President of the United States and later the tenth Chief Justice of the United States. He is the only person to have served in both offices.

Born in 1857 in Cincinnati, Ohio, into the powerful Taft family, "Big Bill" graduated from Yale College Phi Beta Kappa in 1878,<2> and from Cincinnati Law School in 1880. He worked in a number of local non-descript legal positions until he was tapped to serve on the Ohio Supreme Court in 1887. In 1890, Taft was appointed Solicitor General of the United States and in 1891 a judge on the United States Court of Appeals for the Sixth Circuit. In 1900, President William McKinley appointed Taft Governor-General of the Philippines. In 1904, President Theodore Roosevelt appointed Taft Secretary of War with the hope that he might groom Taft, his then close political ally, into his hand picked presidential successor.

Riding a wave of popular support of President (and fellow Republican) Theodore Roosevelt, Taft won an easy victory in his 1908 bid for the presidency.<3>

In his first and only term, President Taft's domestic agenda emphasized trust-busting, civil service reform, strengthening the Interstate Commerce Commission, improving the performance of the postal service, and passage of the Sixteenth Amendment. Abroad, Taft sought to further the economic development of underdeveloped nations in Latin America and Asia through "Dollar Diplomacy". However, Taft often alienated his own key constituencies, and was overwhelmingly defeated in his bid for a second term in the presidential election of 1912.

After leaving office, Taft spent his time in academia, arbitration, and the search for world peace through his self-founded League to Enforce Peace. In 1921, after the First World War, President Warren G. Harding appointed Taft Chief Justice of the United States. Taft served in this capacity until shortly before his death in 1930. As such, he is the only former President to administer the oath of office to another President, and the only Chief Justice to serve with associate justices whom he himself had earlier appointed to the court.

Weighing over 300 pounds (140 kg), Taft weighed the most of any American president. He is the most recent president to have sported facial hair.

http://en.wikipedia.org/wiki/27th_President_of_the_United_States

16th Amendment

To resolve an impasse during the 1909 tariff debate, Taft proposed income taxes for corporations and a constitutional amendment to remove the apportionment requirement for taxes on incomes from property (taxes on dividends, interest, and rents), on June 16, 1909. His proposed tax on corporate net income was 1% on net profits over $5,000. It was designated an excise on the privilege of doing business as a corporation whose stockholders enjoyed the privilege of limited liability, and not a tax on incomes as such. In 1911, the Supreme Court, in Flint v. Stone Tracy Co., upheld the tax. Receipts grew from $21 million in the fiscal year 1910 to $34.8 million in 1912.

In July 1909, a proposed amendment to remove the apportionment requirement was passed unanimously in the Senate and by a vote of 318 to 14 in the House. It was quickly ratified by the states, and on February 3, 1913, it became a part of the Constitution as the Sixteenth Amendment, just as Taft was leaving office.

[Demeter]

31. Geithner’s Gamble Simon Johnson

http://www.project-syndicate.org/commentary/johnson17/English

In a recent interview, United States Treasury Secretary Tim Geithner laid out his view of the nature of world economic growth and the role of the US financial sector. It is a deeply disturbing vision, one that amounts to a huge, uninformed gamble with the future of the American economy – and that suggests that Geithner remains the senior public official worldwide who is most in thrall to the self-serving ideology of big banks.

Geithner argues that the world will now experience a major “financial deepening,” owing to growing demand in emerging markets for financial products and services. He is thinking, of course, of “middle-income” countries like India, China, and Brazil. And he is right to emphasize that all have made terrific progress and now offer great opportunities for the rising middle class, which wants to accumulate savings, borrow more easily (for productive investment, home purchases, education, etc), and, more generally, smooth out consumption.

But then Geithner takes a leap. He wants US banks to take the lead in these countries’ financial development. His words are worth quoting at length:

“I don’t have any enthusiasm for…trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world…It’s the same thing for Microsoft or anything else. We want US firms to benefit from that…Now, financial firms are different because of the risk, but you can contain that through regulation.”

There are three serious problems with this view. First, Geithner ignores everything that we know about the pattern of financial development around the world. It is very rare for financial systems to develop without major crises. In fact, experience in recent decades confirms what should have been obvious from previous centuries: as countries grow and accumulate savings, they become increasingly prone to financial collapse. Given Geithner’s extensive international crisis-fighting experience at the US Treasury, the International Monetary Fund, and the New York Federal Reserve, his current naiveté on this point is simply stunning...MORE



GEITHNER'S INTERVIEW AT:

http://www.tnr.com/article/economy/magazine/83176/timothy-geithner-treasury-secretary?page=0,0&passthru=YzQ3YzJiODdkOGQzZTMwZDRhNDljZjQ4NmIyYmIwZDE

[bread_and_roses]

36. Is he clinically "insane?" Or criminally deranged? and sorry for being missing

in action - I'm swamped this week. AND had g'dtrs event this am and have her here now and trying to work (and get a peek in at WE) as I can....

sorry, hope to be around some tomorrow, but not sure....

[Demeter]

37. Odds Are Yes to Both

That's okay, I went out to get ready for Sunday's paper route and found more than twice as much paper as last week....my back is hurting already...

[DemReadingDU]

38. Sorry for missing the action too

Just more and more things going on, and tomorrow is 3-year old grandson birthday party.

[Demeter]

32. Back to the Future: The “Stimulus” Act of Early 2008

http://ampedstatus.org/network/members/admin/activity/5909

Let’s all take a trip back to February 13th, 2008. Our war mongering 43rd President, George W. Bush, freaked out by the impact of the subprime crisis on the U.S. economy announced the now almost forgotten “Stimulus Act of 2008.” A big part of this typical Keynesian stimulus (remember Keynesianism is not a partisan thing it is a economic religion handed down by the Fed to both the Republican and Democratic establishment) was simply writing checks to people. At the time, I criticized it harshly and said it would lead to massive inflation. Guess what? Oil was trading at about $93/b and five months later it topped out at $147/b for a monster gain of 58%. Then all hell broke loose.

George W. Bush should actually be a hero for most of the fake liberals and fake progressives out there that just spout meaningless drivel about how things should be without ever bothering to look into and understand how the global financial system actually works. That would be too much work. It’s much easier to just be ignorant and support “your guy” as the countRy goes down in flames. The reason the fake liberals and progressives should love W so much is that at least he just wrote checks to average people. Obama is the biggest puppet of the banking oligarchs in American history. I mean this guy’s entire administration so far has revolved around printing money and handing it out, but rather than hand it out to the people he gave it all to the banks that cratered your children’s futures in the first place. Of course, in order to give away trillions to the financials oligarchs that should be in prisons as opposed to the petty dealers caught with dime bags that fill the prison you need to give the money away in secret. In comes the Federal Reserve. To make matters worse, after the Fed and Obama bailed out the banksters the next way to hand out money was defined in Jackson Hole Wyoming in August of last year where Banana Ben Bernanke laid out his plan for QE2. The unstated yet stated purpose of this policy was to juice the stock market. He has succeeded wildly in this manipulation until now. Again, it isn’t the 44 million (a new record every time the data is updated) Americans on food stamps that benefit from this policy, it is the financial oligarchs that game the system and push the stock market up until the point that retail investors finally buy the stocks from them and then they are permitted to crash. Don’t play their crooked game, don’t buy stocks; buy physical gold and silver and take this nation back from the sociopathic financial control freaks running it now.

How Long Until Obama Starts Writing Checks?

The big news this week from Saudi Arabia is that upon his return to the Kingdom after a three month medical absence, King Abdullah has decided to implement a massive $36 billion payoff to his people to stem off any revolt. Amongst other things: “The measures include a 15 per cent salary rise for public employees to offset inflation, reprieves for imprisoned debtors, and financial aid for students and the unemployed” according to the Financial Times. Interestingly, this is exactly what I said would happen in my recent interview with Max Keiser from last week. Please take the time to watch as it offers more detailed analysis on how I think this will all play out. It is in three parts and I have gotten great feedback so far. Link below.

http://www.zerohedge.com/article/mike-kriegers-latest-interview-max-keiser

So the payoffs have begun in earnest and the question is, when will banker puppet Obama will engage in similar tactics. My guess is very soon. More and more people are aware of the sham that is his presidency, and as the people realize they have been sold out to make sure the financial oligarchs got their record Christmas bonuses and can fund his 2012 run, he will need to give a pay raise to the 15% of Americans on food stamps. Interestingly, my friend Dave DeGraw at Ampedstatus recently put out an excellent report where he shows how poverty and inequality in the United States of Banana Republic are in many ways comparable or worse than in Egypt...

[Demeter]

33. Our Economic Pain Is Coming from Big Industry CEOs, Not Public Employees' Unions

http://www.alternet.org/economy/150022/our_economic_pain_is_coming_from_big_industry_ceos,_not_public_employees%27_unions?page=entire

Pay in the private sector has been stagnant or falling for decades, health insurance coverage has been dropping, and traditional pensions have all but disappeared...

The problem is not that public-sector pay and benefits are out of control. The problem is that pay in the private sector has been stagnant or falling, health insurance coverage has been dropping, and traditional pensions have all but disappeared.

Back in the late 1970s, public- and private-sector jobs were not that different. About 70 percent of private-sector workers had health insurance through their jobs. Public-sector workers were a bit more likely to have coverage than private-sector workers --about 75 percent at the local level, 80 percent at the state level, and 85 percent at the federal level. Then, as now, this largely reflected that, on average, public employees were older and more likely to be college-educated than private-sector workers.

Health-coverage rates today are little changed in the public sector. But, coverage is down almost 15 percentage points for private-sector workers...The real problem facing America is not that we don't have enough to go around. The problem is that we have redistributed from the middle-class to the wealthy. Public-sector workers played no role whatsoever in that process.

Given recent economic history, the actions of conservatives look like a classic case of misdirection. Conservative think-tanks, Governors Christie and Walker, and their corporate backers want us to focus on public employees because they don't want us to focus on the people who are really making out in the current economy.

[Demeter]

34. TAKING A BREAK--TALK AMONGST YOURSELVES

maybe post a few more Presidents...

[Fuddnik]

40. Brits switch to American Health Care model.

From our friend Ozy.

http://macroindex.blogspot.com/2011/02/late-night-with-monty-python_26.html

[Fuddnik]

41. Kick and Rec!

For da morning.

[Demeter]

42. Really Bad Reporting in Wisconsin: Who 'Contributes' to Public Workers' Pensions?

http://tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8EDJYS?OpenDocument

When it comes to improving public understanding of tax policy, nothing has been more troubling than the deeply flawed coverage of the Wisconsin state employees' fight over collective bargaining.

Economic nonsense is being reported as fact in most of the news reports on the Wisconsin dispute, the product of a breakdown of skepticism among journalists multiplied by their lack of understanding of basic economic principles.

Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to "contribute more" to their pension and health insurance plans... Accepting Gov. Walker' s assertions as fact, and failing to check, created the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not. Out of every dollar that funds Wisconsin' s pension and health insurance plans for state workers, 100 cents comes from the state workers.

How can that be? Because the "contributions" consist of money that employees chose to take as deferred wages – as pensions when they retire – rather than take immediately in cash. The same is true with the health care plan. If this were not so a serious crime would be taking place, the gift of public funds rather than payment for services.

Thus, state workers are not being asked to simply "contribute more" to Wisconsin' s retirement system (or as the argument goes, "pay their fair share" of retirement costs as do employees in Wisconsin' s private sector who still have pensions and health insurance). They are being asked to accept a cut in their salaries so that the state of Wisconsin can use the money to fill the hole left by tax cuts and reduced audits of corporations in Wisconsin.

The labor agreements show that the pension plan money is part of the total negotiated compensation...

[Demeter]

43. Corporate Profits Soaring Thanks to Record Unemployment

http://www.economicpopulist.org/content/corporate-profits-soaring-thanks-record-unemployment

In a January 2009 ABC interview with George Stephanopoulos, then President-elect Barack Obama said fixing the economy required shared sacrifice, "Everybody’s going to have to give. Everybody’s going to have to have some skin in the game."

For the past two years, American workers submitted to the President’s appeal—taking steep pay cuts despite hectic productivity growth. By contrast, corporate executives have extracted record profits by sabotaging the recovery on every front—eliminating employees, repressing wages, withholding investment, and shirking federal taxes.

The global recession increased unemployment in every country, but the American experience is unparalleled. According to a July OECD report, the U.S. accounted for half of all job losses among the 31 richest countries from 2007 to mid-2010.The rise of U.S. unemployment greatly exceeded the fall in economic output. Aside from Canada, U.S. GDP actually declined less than any other rich country, from mid-2008 to mid 2010.

Washington’s embrace of labor market flexibility ensured companies encountered little resistance when they launched their brutal recovery plans. Leading into the recession, the US had the weakest worker protections against individual and collective dismissals in the world, according to a 2008 OECD study. Blackrock’s Robert Doll explains, “When the markets faltered in 2008 and revenue growth stalled, U.S. companies moved decisively to cut costs—unlike their European and Japanese counterparts.” The U.S. now has the highest unemployment rate among the ten major developed countries...

[Demeter]

44. AND NO SURPRISE: Retail Sales have not Recovered Normalized to Population

http://www.creditwritedowns.com/2011/02/retail-sales-have-not-recovered-normalized-to-population.html#ixzz1FAIF4Trp

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for January, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $381.6 billion, an increase of 0.3 percent (±0.5%)* from the previous month, and 7.8 percent (±0.7%) above January 2010. Total sales for the November 2010 through January 2011 period were up 7.6 percent (±0.5%) from the same period a year ago. The November to December 2010 percent change was revised from +0.6 percent (±0.5%) to +0.5 percent (±0.3%).trans

* The 90 percent confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different than zero.

The 0.3% number is disappointing. The Briefing.com consensus estimate was 0.5% and its own estimate was 0.7%.

The chart below shows the complete data series from 1992, when the U.S. Census Bureau began tracking the data. I’ve highlighted recessions and the approximate range of two major economic episodes that have impacted consumer attitudes. The Tech Crash that began in the spring of 2000 had little impact on consumption. The Financial Crisis of 2008 has had a major impact. The January retail sales take us in nominal terms a mere 0.4% above the previous high of November 2007.

SEE GRAPHIC PORN: http://www.creditwritedowns.com/2011/02/retail-sales-have-not-recovered-normalized-to-population.html#ixzz1FAImKNkT

[Demeter]

45. How Much More Demand Can Silver Handle?

http://dailyreckoning.com/how-much-more-demand-can-silver-handle/

The numbers for silver demand are starting to make some market-watchers nervous. The US Mint sold over 6.4 million silver Eagles in January, more than any other month since the coin’s introduction in 1986. China’s net imports of silver quadrupled in 2010, to 122.6 million ounces, roughly 13.7% of global production. Meanwhile, mine production can’t meet worldwide demand; the only way demand gets fulfilled is from scrap supply.

That is some very hungry demand. Which raises the question, how long can this pace continue?

This question is important for various reasons, starting with how demand contributes to price. If demand falls off, silver investments would obviously suffer.

While I’ve discussed the concern regarding the lack of supply before, which has its own implications for the silver market, let’s focus on investment demand. Frankly, is there room for it to continue to grow? After all, how long can investors continue to set records?

Read more: How Much More Demand Can Silver Handle? http://dailyreckoning.com/how-much-more-demand-can-silver-handle/#ixzz1FAKpsWcY

[DemReadingDU]

46. JUDITH REGAN: FOX Boss Roger Ailes Told Me To Lie To The Feds To Protect Rudy Giuliani

this may already have been posted, but see last article


2/24/11 JUDITH REGAN: FOX Boss Roger Ailes Told Me To Lie To The Feds To Protect Rudy Giuliani
Whoa. The NYT is reporting that Judith Regan, the former publishing powerhouse, says that in 2006 Roger Ailes encouraged her to lie to federal investigators about her affair with former NYC police chief Bernie Kerik in an effort to protect Rudy Giuliani's upcoming presidential bid. And she supposedly recorded it.
The Times speculates the fact the call was recorded may account for Regan's quick (and costly! to the tune of $10.7 million) settlement from News Corp. News Corp is, naturally, denying any wrong-doing.
more...
http://www.businessinsider.com/roger-ailes-judith-regan-giuliani-kerik-2011-2

2/24/11 Fox News Chief, Roger Ailes, Urged Employee to Lie, Records Show
It was an incendiary allegation — and a mystery of great intrigue in the media world: After the publishing powerhouse Judith Regan was fired by HarperCollins in 2006, she claimed that a senior executive at its parent company, News Corporation, had encouraged her to lie two years earlier to federal investigators who were vetting Bernard B. Kerik for the job of homeland security secretary.
What is more, the documents say that Ms. Regan taped the telephone call from Mr. Ailes in which Mr. Ailes discussed her relationship with Mr. Kerik.
It is unclear whether the existence of the tape played a role in News Corporation’s decision to move quickly to settle a wrongful termination suit filed by Ms. Regan, paying her $10.75 million in a confidential settlement reached two months after she filed it in 2007.
more...
http://www.nytimes.com/2011/02/25/nyregion/25roger-ailes.html?_r=2&hp

2/27/11 FOX NEWS BOSS ROGER AILES TO BE INDICTED???
Last week it was revealed that legendary FOX News boss Roger Ailes allegedly told underling Judith Regan to lie to federal investigators to protect Rudy Giuliani. Regan reportedly has a tape of the telephoone call in which Ailes urged her to do this. If this story is true, and the telephone call is clear, Ailes would obviously be exposed to obstruction-of-justice charges.
more...
http://www.businessinsider.com/fox-news-boss-roger-ailes-to-be-indicted-2011-2

[Demeter]

48. Whoo-Hoo!

:woohoo:

[Demeter]

47. The Solution to Our Budget Problems Is So Obvious: We Need to Raise Taxes on the Rich, ASAP

A great tragedy of the United States is that the answer to many of the country’s domestic problems is obvious, even simple, but can’t be done because of a dominating political/media dynamic that rules that solution out...The solution to these many problems – from the budget deficit to crumbling infrastructure, from mass joblessness to income inequality, from environmental degradation to educational shortfalls -- is to raise taxes on the rich and to use that money to get the United States back on track and advancing toward the future...

President Theodore Roosevelt... in his New Nationalism speech of 1910:

“The really big fortune, the swollen fortune, by the mere fact of its size, acquires qualities which differentiate it in kind as well as in degree from what is possessed by men of relatively small means,” Roosevelt said.


However, it may be the most important debate for the future of the United States and the health of the American Republic. If the government doesn’t intervene through its taxing authority to redistribute some wealth that now is concentrating among the ultra-rich, the middle class is likely to continue shrinking and the ranks of the poor swelling.

As the rich increasingly dominate the political process through unlimited campaign spending and the financing of sophisticated propaganda – like Fox News and right-wing talk radio – the policy battles will continue to be fought on ground favorable to the Right: more cuts in public spending, more reductions in retirement and health programs, more union-busting.

No democratic republic can long survive such a distorted political-economic-media system.

As Justice Louis D. Brandeis noted more than 60 years ago, "we can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both."

[AnneD]

50. I propose....

auditing the Fed and letting these too big to fail banks do just that. I propose going all Iceland on their asses.

[AnneD]

51. I am having

Connection issues and have been double posting,sorry.

[jotsy]

52. Happy Sunday all!

As I flitter about that jungle we call a blog-a-sphere, I came across a few things over the weekend that I thought belonged here.

Banks expecting penalties from foreclosure probe
<http://www.huffingtonpost.com/2011/02/25/banks-expect-p ... >

A few rewritten lyrics to familiar tunes at Economy in Crisis
<http://www.economyincrisis.org/content/thought-provokin... >

From Common Dreams, by Robert Freeman, on the deficit problem
being political, rather than financial.
<http://www.commondreams.org/view/2011/02/27-3 >

Thanks Demeter for giving me a proper place to share!

Recommended.........Friday night, as usual!

[DemReadingDU]

53. Thanks

I'm still trying to get caught up

[Demeter]

54. Well, Another Weekend Has Flown

Sorry for the thin WEE, I had an enormous job his weekend, and it interfered with my life....

Have a good week, all. I think we on the left got our groove back, are well on the way to it, at least.