Thursday, June 23, 2011
Video: Latest From Tim Geithner On The U.S. Debt Ceiling: "Irresponsible To Cut Deficit Without Tax Increases"
http://dailybail.com/home/video-latest-from-tim-geithner-on-the-us-debt-ceiling-irresp.html
Video - Geithner speaks to corporate CFOs in Washington - June 21, 2011
CNS News
Treasury Secretary Timothy Geithner said Tuesday that a deal to raise the legal debt limit, which he expects to be completed in the next few weeks, will be only a short-term “down payment” on solving the nation’s debt problem, and that it would be "irresponsible" to reduce the massive federal deficit anticipated over the next ten years with spending cuts alone.
What is needed, he said, is a longer-term deal on a “balanced framework” that includes “revenue increases through tax reform.”
“I think for it to work for the economy you need to have a balanced framework,” Geithner told a Washington, D.C. gathering of CFOs from major corporations.
“If you try to do this, the magnitude of deficit reduction we need--and we need about $4 to 5 trillion in deficit reduction over the next ten years--to try to do that only on spending cuts in parts of the budget would be irresponsible and really not achievable politically,” said Geithner. "You can't pass the budget without that.
“So, you need a balanced plan that has modest revenue increases through tax reform as well as some near-term spending savings and long-term entitlement reforms,” he said.
“Again, I think if you look at the structure of our budget and what is driving these long-term deficits, if you look at the scale of challenges we need in terms of creating some room for investing in things that matter for long-term growth, you can’t do it through spending reductions concentrated in a very narrow slice of the government where the economy sort of depends on the government doing things that only the government can do,” said Geithner.
Continue reading...
CNS News
Treasury Secretary Timothy Geithner said Tuesday that a deal to raise the legal debt limit, which he expects to be completed in the next few weeks, will be only a short-term “down payment” on solving the nation’s debt problem, and that it would be "irresponsible" to reduce the massive federal deficit anticipated over the next ten years with spending cuts alone.
What is needed, he said, is a longer-term deal on a “balanced framework” that includes “revenue increases through tax reform.”
“I think for it to work for the economy you need to have a balanced framework,” Geithner told a Washington, D.C. gathering of CFOs from major corporations.
“If you try to do this, the magnitude of deficit reduction we need--and we need about $4 to 5 trillion in deficit reduction over the next ten years--to try to do that only on spending cuts in parts of the budget would be irresponsible and really not achievable politically,” said Geithner. "You can't pass the budget without that.
“So, you need a balanced plan that has modest revenue increases through tax reform as well as some near-term spending savings and long-term entitlement reforms,” he said.
“Again, I think if you look at the structure of our budget and what is driving these long-term deficits, if you look at the scale of challenges we need in terms of creating some room for investing in things that matter for long-term growth, you can’t do it through spending reductions concentrated in a very narrow slice of the government where the economy sort of depends on the government doing things that only the government can do,” said Geithner.
Continue reading...
Vanity Fair Exclusive: Billions Over Baghdad: How $9B Disappeared Into A Frenzy Of Mismanagement And Greed
Illustration by John Blackford
Update - Is it $9 billion or possibly as much as $18 billion?
The NY Fed will not say...
--
Vanity Fair
Between April 2003 and June 2004, $12 billion in U.S. currency - much of it belonging to the Iraqi people - was shipped from the Federal Reserve to Baghdad, where it was dispensed by the Coalition Provisional Authority. Some of the cash went to pay for projects and keep ministries afloat, but, incredibly, at least $9 billion has gone missing, unaccounted for, in a frenzy of mismanagement and greed. Following a trail that leads from a safe in one of Saddam's palaces to a house near San Diego, to a P.O. box in the Bahamas, the authors discover just how little anyone cared about how the money was handled.
Hidden in plain sight, 10 miles west of Manhattan, amid a suburban community of middle-class homes and small businesses, stands a fortress-like building shielded by big trees and lush plantings behind an iron fence. The steel-gray structure, in East Rutherford, New Jersey, is all but invisible to the thousands of commuters who whiz by every day on Route 17. Even if they noticed it, they would scarcely guess that it is the largest repository of American currency in the world.
Officially, 100 Orchard Street is referred to by the acronym eroc, for the East Rutherford Operations Center of the Federal Reserve Bank of New York. The brains of the New York Fed may lie in Manhattan, but xeroc is the beating heart of its operations—a secretive, heavily guarded compound where the bank processes checks, makes wire transfers, and receives and ships out its most precious commodity: new and used paper money.
On Tuesday, June 22, 2004, a tractor-trailer truck turned off Route 17 onto Orchard Street, stopped at a guard station for clearance, and then entered the eroc compound. What happened next would have been the stuff of routine—procedures followed countless times. Inside an immense three-story cavern known as the currency vault, the truck's next cargo was made ready for shipment. With storage space to rival a Wal-Mart's, the currency vault can reportedly hold upwards of $60 billion in cash. Human beings don't perform many functions inside the vault, and few are allowed in; a robotic system, immune to human temptation, handles everything. On that Tuesday in June the machines were especially busy. Though accustomed to receiving and shipping large quantities of cash, the vault had never before processed a single order of this magnitude: $2.4 billion in $100 bills.
Under the watchful eye of bank employees in a glass-enclosed control room, and under the even steadier gaze of a video surveillance system, pallets of shrink-wrapped bills were lifted out of currency bays by unmanned "storage and retrieval vehicles" and loaded onto conveyors that transported the 24 million bills, sorted into "bricks," to the waiting trailer. No human being would have touched this cargo, which is how the Fed wants it: the bank aims to "minimize the handling of currency by eroc employees and create an audit trail of all currency movement from initial receipt through final disposition."
Forty pallets of cash, weighing 30 tons, were loaded that day. The tractor-trailer turned back onto Route 17 and after three miles merged onto a southbound lane of the New Jersey Turnpike, looking like any other big rig on a busy highway. Hours later the truck arrived at Andrews Air Force Base, near Washington, D.C. There the seals on the truck were broken, and the cash was off-loaded and counted by Treasury Department personnel. The money was transferred to a C-130 transport plane. The next day, it arrived in Baghdad.
That transfer of cash to Iraq was the largest one-day shipment of currency in the history of the New York Fed. It was not, however, the first such shipment of cash to Iraq. Beginning soon after the invasion and continuing for more than a year, $12 billion in U.S. currency was airlifted to Baghdad, ostensibly as a stopgap measure to help run the Iraqi government and pay for basic services until a new Iraqi currency could be put into people's hands. In effect, the entire nation of Iraq needed walking-around money, and Washington mobilized to provide it.
Continue reading at Vanity Fair...
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- Who Told Tim Geithner To Go F*ck Himself?
- Video: Latest From Tim Geithner On The U.S. Debt Ceiling: "Irresponsible To Cut Deficit Without Tax Increases"
- Vanity Fair Exclusive: Billions Over Baghdad: How $9B Disappeared Into A Frenzy Of Mismanagement And Greed
- Chris Whalen On Greece: 'Get The Bondholders In A Room And Force Haircuts Down Their Throats' (CNBC Video)
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"This Is Not A Program to Salvage the [Greek] Economy, It's a Program for Pillage Before Bankruptcy"
The best quote on the Greek parliament's vote of confidence for Prime Minister George Papandreou - and thus his austerity plan:
As PhD economist Michael Hudson said in 2009:
"This is not a program to salvage the economy, it's a program for pillage before bankruptcy," said Alexis Tsipras, head of the small opposition Left Coalition.It's not just Greece.
As PhD economist Michael Hudson said in 2009:
- The giant financial institutions have already killed their host - the real American economy
- Since they realize that the American economy is dead, they are trying to suck as much blood out of America as possible while the corpse is still warm
- Because the American economy is dead, their plan is to soon jump to another host. They will ship all of their money overseas
Greeks Turn Savings to Gold and Perth Mint Silver Coin Sales Surge to Record on Haven Demand
Gold is trading at $1,544.31/oz, €1,072.96/oz and £957.30/oz.
Gold is lower in dollars but higher in euros and has reached new record highs in pounds sterling at £958.25/oz. Gold is being supported by strong and increasing demand internationally.
Sterling has fallen after the BoE minutes raised concerns of further quantitative easing and currency debasement. The Bank of England looks increasingly likely to maintain its ultra accommodative monetary policies. Interest rates may continue to remain at multi century lows and the BoE is again considering more printing of money to buy government debt.
UK Interest Rates – 1700 to Today
Despite Papandreou winning yesterday’s vote, the Greek parliament must now approve the austerity measures and this is leading to continuing nervousness in markets.
Cross Currency Rates
European equities have been sold this morning and Italian, Portuguese and particularly Irish debt are under pressure showing that the risk of contagion remains real. There remain many possible impediments to a solution to Greece's and the Eurozone’s sovereign and banking debt crisis. That is, if indeed, a solution is possible given the scale of the crisis and the fact that it is systemic.
Gold in British Pounds – 30 Days (Tick)
Gold and silver’s increasing safe haven status is seen in news from the Financial Times (front page) and from Bloomberg today (see news).
The Financial Times reports that “Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks.”
Sales of gold coins have soared as savers seek a safer and fungible source of value, says the FT.
“When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.”
Tomas, a computer technician, has exchanged his euro savings for gold coins: “I keep them at home just like my grandmother did in the second world war.”
Athens Stock Exchange General Index – 10 Years (Weekly)
Gold is again being seen in Greece as an essential store of wealth, hedge against inflation and safe haven asset.
This is not surprising given the scale of the crisis and the sharp falls seen in Greek property and equity markets (see chart above).
The fact that gold cannot default or go bankrupt unlike every single corporation, bank and government in the world is making it the safe haven of choice again.
There is also the important fact that it cannot be debased by bankers and central bankers unlike currencies and bonds.
Greece is the canary in the coalmine and the likelihood is that what is happening in Greece today, people using their cash deposits in banks to buy gold bullion, will be seen in many other countries in the coming months.
Indeed, news from the Perth Mint of record sales of silver coins is indicative that this trend has already begun.
Bloomberg reports that “Silver-coin sales from Australia’s Perth Mint, which was founded in 1899 and processes all of the country’s bullion, have surged to a record as buyers seek to protect their wealth with the metal known as poor man’s gold.
The mint sold 10.7 million 1-ounce silver coins since July 1 last year, according to Sales and Marketing Director Ron Currie. That’s 66 percent higher than the previous full fiscal year and about 10-fold more than five years earlier. Sales of 1- ounce gold coins will be close to a record, he said.
Confirming robust demand internationally, UBS said that its gold sales to India have increased significantly and that sales of gold coins and bars in Europe have also accelerated in recent days.
GoldCore has seen a marked increase in sales last week and this. Silver in particular had seen a sharp drop in sales since late April but buying renewed again last week. Renewed buying comes after a long period of hesitancy on behalf of many clients since the sell off at the end of April led to heightened concerns that the “bubble” had burst.
Yet another indication, if one were needed, that gold is anything but a bubble comes in the news that the People’s Bank of China is planning to double its issuance of gold bullion Chinese gold coins.
Both the FT and Bloomberg report that the People’s Bank of China plans to issue about 1 million ounces of its 2011 panda gold bullion coins compared with plans at the end of last year for 500,000 ounces of the coins.
Gold is far from being a bubble. Bubbles witness investors and speculators greedily piling in in expectation of making quick profits. It is quite the opposite today as risk and concern is leading to diversification into gold and buying of gold bullion as a long term store of wealth internationally.
Today, those buying gold and silver are increasingly protected due to the floor being put under precious metal prices due to Indian, Chinese and Asian public and central bank buying of gold.
SILVER
Silver is trading at $36.09oz,€25.07/oz and £22.37/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,740.00/oz, palladium at $763/oz and rhodium at $1,925/oz.
NEWS
(Financial Times)
Greek savers rush for gold
(Bloomberg)
China Central Bank Plans to Double Issuance of Gold Panda Coins
(Business Week)
Gold May Gain in New York on Weaker Dollar, Europe Debt Concern
(Reuters)
PRECIOUS-Gold steady ahead of Fed, near 2-week top
(Business Week)
Silver-Coin Sales Booming at Perth Mint on Demand for Haven
COMMENTARY
(GoldSeek)
http://news.goldseek.com/GoldForecaster/1308618000.php ">Gold on the brink... of what?
(24hGold)
Kunstler: Man Down
(ZeroHedge)
Things That Make You Go Hmmm.... Such As The 10 Steps To Realizing You, Or Your Country, Is A Debt Addict
Gold is lower in dollars but higher in euros and has reached new record highs in pounds sterling at £958.25/oz. Gold is being supported by strong and increasing demand internationally.
Sterling has fallen after the BoE minutes raised concerns of further quantitative easing and currency debasement. The Bank of England looks increasingly likely to maintain its ultra accommodative monetary policies. Interest rates may continue to remain at multi century lows and the BoE is again considering more printing of money to buy government debt.
UK Interest Rates – 1700 to Today
Despite Papandreou winning yesterday’s vote, the Greek parliament must now approve the austerity measures and this is leading to continuing nervousness in markets.
Cross Currency Rates
European equities have been sold this morning and Italian, Portuguese and particularly Irish debt are under pressure showing that the risk of contagion remains real. There remain many possible impediments to a solution to Greece's and the Eurozone’s sovereign and banking debt crisis. That is, if indeed, a solution is possible given the scale of the crisis and the fact that it is systemic.
Gold in British Pounds – 30 Days (Tick)
Gold and silver’s increasing safe haven status is seen in news from the Financial Times (front page) and from Bloomberg today (see news).
The Financial Times reports that “Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks.”
Sales of gold coins have soared as savers seek a safer and fungible source of value, says the FT.
“When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.”
Tomas, a computer technician, has exchanged his euro savings for gold coins: “I keep them at home just like my grandmother did in the second world war.”
Athens Stock Exchange General Index – 10 Years (Weekly)
Gold is again being seen in Greece as an essential store of wealth, hedge against inflation and safe haven asset.
This is not surprising given the scale of the crisis and the sharp falls seen in Greek property and equity markets (see chart above).
The fact that gold cannot default or go bankrupt unlike every single corporation, bank and government in the world is making it the safe haven of choice again.
There is also the important fact that it cannot be debased by bankers and central bankers unlike currencies and bonds.
Greece is the canary in the coalmine and the likelihood is that what is happening in Greece today, people using their cash deposits in banks to buy gold bullion, will be seen in many other countries in the coming months.
Indeed, news from the Perth Mint of record sales of silver coins is indicative that this trend has already begun.
Bloomberg reports that “Silver-coin sales from Australia’s Perth Mint, which was founded in 1899 and processes all of the country’s bullion, have surged to a record as buyers seek to protect their wealth with the metal known as poor man’s gold.
The mint sold 10.7 million 1-ounce silver coins since July 1 last year, according to Sales and Marketing Director Ron Currie. That’s 66 percent higher than the previous full fiscal year and about 10-fold more than five years earlier. Sales of 1- ounce gold coins will be close to a record, he said.
Confirming robust demand internationally, UBS said that its gold sales to India have increased significantly and that sales of gold coins and bars in Europe have also accelerated in recent days.
GoldCore has seen a marked increase in sales last week and this. Silver in particular had seen a sharp drop in sales since late April but buying renewed again last week. Renewed buying comes after a long period of hesitancy on behalf of many clients since the sell off at the end of April led to heightened concerns that the “bubble” had burst.
Yet another indication, if one were needed, that gold is anything but a bubble comes in the news that the People’s Bank of China is planning to double its issuance of gold bullion Chinese gold coins.
Both the FT and Bloomberg report that the People’s Bank of China plans to issue about 1 million ounces of its 2011 panda gold bullion coins compared with plans at the end of last year for 500,000 ounces of the coins.
Gold is far from being a bubble. Bubbles witness investors and speculators greedily piling in in expectation of making quick profits. It is quite the opposite today as risk and concern is leading to diversification into gold and buying of gold bullion as a long term store of wealth internationally.
Today, those buying gold and silver are increasingly protected due to the floor being put under precious metal prices due to Indian, Chinese and Asian public and central bank buying of gold.
SILVER
Silver is trading at $36.09oz,€25.07/oz and £22.37/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,740.00/oz, palladium at $763/oz and rhodium at $1,925/oz.
NEWS
(Financial Times)
Greek savers rush for gold
(Bloomberg)
China Central Bank Plans to Double Issuance of Gold Panda Coins
(Business Week)
Gold May Gain in New York on Weaker Dollar, Europe Debt Concern
(Reuters)
PRECIOUS-Gold steady ahead of Fed, near 2-week top
(Business Week)
Silver-Coin Sales Booming at Perth Mint on Demand for Haven
COMMENTARY
(GoldSeek)
http://news.goldseek.com/GoldForecaster/1308618000.php ">Gold on the brink... of what?
(24hGold)
Kunstler: Man Down
(ZeroHedge)
Things That Make You Go Hmmm.... Such As The 10 Steps To Realizing You, Or Your Country, Is A Debt Addict
Ron Paul Where The Bailout money Went
http://revolutionarypolitics.tv/video/viewVideo.php?video_id=15413
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