How Greece Can Impact YOU!

The economic problems in Greece have made front page news for the better part of the past three months. And I’ve written several columns here in Money and Markets on the ongoing drama and its influence on the global currency markets.

But with all of this incessant talk about Greece, what does it have to do with you?

That’s a common question. And the answer: Potentially, a lot.

You see, Greece represents the growing mound of looming landmines in a global economy that has been damaged by the worst economic crisis in more than 80 years. And if there’s anything that should have been clear from the collapse in global financial markets in 2008, it’s that the world is a highly interconnected place, and so are its financial markets. So problems in Greece will likely mean problems for you and me.

Here’s why …

In a fragile economic recovery, investor and consumer confidence plays an important role in repairing economies … and likewise, restoring investment values and opportunities.

So a hiccup in investor optimism can be a huge blow to a fragile economy. It can make businesses more defensive and consumers stingier, thus sending stock prices lower and risk premiums higher.

In short, a lack of participant confidence can mean round two of a bear market in global stocks, and potentially a double dip recession for the global economy. And that’s highly possible because …

A Sovereign Debt Crisis Is Underway

ECB Executive Board member Juergen Stark said this week that the global economy may be entering a new “sovereign debt crisis.”

Respectfully, he’s a bit late in admitting that.

Last November, Dubai sent tremors through financial markets by announcing it would be “restructuring” its debt. The government later offered its bondholders just 60 cents on the dollar for their investment.

Now, Greece’s shaky finances represent a threat to the lifespan of the euro, the second most widely held currency in the world. And it stands on wobbly footing as the second domino in an unraveling global sovereign debt crisis. The other potential candidates include Portugal, Italy, Ireland, Spain … even the UK, Japan and the U.S.

That’s a lineup of suspects that, if under the gun of global investor scrutiny for their respective burgeoning debt problems, could mean a lot to you and me — and to the outlook of the global economy.

But the euro zone and the IMF stepped up last weekend and provided details of aggressive financial aid as a lifeline to Greece. And given the initial bounce in the euro and decline in market interest rates for Greek government debt, the hope was that Greece’s default threat had finally been put to bed.

Not so. In fact …

The Greece Problem
Is Far from Over

Those initial favorable responses to the aid plan are already being reversed as Greece’s bond yields and the euro are back to pre-rescue announcement levels.

For the near term, the rescue plan could plug the gap for Greece. It has 11.6 billion euros of government debt to refinance over the next month — and another 20 billion euros by the end of the year.

And funding from its fellow euro-zone countries could allow Greece to roll-over that debt, without having to pay the prohibitively high interest rate that global investors would require from such a high-risk borrower.

However, accessing those funds is no slam dunk. All sixteen member countries would have to agree to disburse the funds, and only if they deemed Greece unable to raise funds on its own.

Perhaps even more troubling, though, is if the euro lifeline gets extended, that opens up a can of worms. Because it means the euro-zone officials have breached the treaty guidelines upon which the euro was developed.

And it will also likely mean that Portugal, Spain, Italy and Ireland will be next in line for a handout — a recipe for a political and economic disaster in Europe and a potential break-up of the euro.

From there … the other debt-burdened dominos in line could become even more vulnerable.

Greece … a Big Deal

As the crisis in Greece continues to unfold, investors will look for safety.

With the U.S. stock market climbing, almost daily, to new post-crisis highs and the U.S. economic data showing solid recovery, Greece sounds like a distant problem.

But as you can see, the drama in Greece is a big deal! Not just for Europe, but for the world economy — and for institutional and individual investors alike.

Unfortunately, the euro zone is in a no-win situation. The European monetary union countries, with damaged balance sheets and a bleak outlook for growth, are stuck. And with a one-size fits all monetary policy and currency, they lack critical tools, such as devaluation, to work their way out.

So expect the sovereign debt crisis to continue to build. And be cautious of a quick downturn in global risk appetite, which can send stock markets and global demand heading south, and global capital heading for safety.

Regards,

Bryan

10 Facts All Americans Must Know Now

1. The United States individual (personal) income taxes go directly to the Bank of England, City of London, which is wholly owned and controlled by the family Rothschild.

2. The United States Federal Reserve Bank is NOT a U.S. government institution.

3. The Federal Reserve is a PRIVATE bank, which is wholly owned and controlled by the family Rothschild.

4. The Federal Reserve was established in 1913 illegally, when the Rothschild’s lieutenant, U.S. Senator Nelson Aldrich, forced through a Congressional bill that mandated it.

5. The family Rothschild is directly responsible for starting all major, and many minor, wars over the past 230 years.

6. The family Rothschild is directly responsible for every recession and depression in the United States over the past 210 years.

7. The family Rothschild (The First Sphere of Influence) controls all major banking throughout the entire world, and has the power to bankrupt entire countries.

8. Thomas Jefferson fought vehemently against Alexander Hamilton to ensure that the newly created United States would NOT fall under the control of the Rothschilds. Jefferson said that the Rothschilds were a greater threat to our country than any standing army.

9. Andrew Jackson also fought to thwart all the efforts of the Rothschilds, and was able to do so during his term. When his term was up, the Rothschilds installed their own U.S. president and then, in a retaliatory measure, plunged America into its first depression.

10. The Rothschilds have assassinated four U.S. presidents, who refused to toe the Rothschild line, and are thought to have murdered others, although the evidence for the latter is as yet inconclusive.

11. The Internal Revenue Service is a private corporation, licensed by the Fed as a collection agency.

12. BONUS FACT #1: the Rothschilds are wholly responsible for the deaths and murders and assassinations of tens of millions of human beings worldwide.

13. BONUS FACT #2: The Rothschild henchmen are Zbigniew Brzezinski and his sons. Forget Kissinger; he’s an idiot.

Protect us, not polar bears: Inuit officials

Nunavut Inuit who do not want polar bears listed under Canada's Species at Risk Act say they should be the ones being protected from the Arctic bears.

Speaking Wednesday before the Nunavut Wildlife Management Board (NWMB) in Iqaluit, Inuit elders and officials voiced their opposition to a proposal by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) to have the polar bear listed as a species of special concern in Canada.

"We have to listen to our communities, we have to listen to Inuit, and we get our direction from Inuit and also from our executive," said Paul Irngaut, a wildlife adviser with Inuit land-claims organization Nunavut Tunngavik Inc.

"Our executive does not support the listing, and that's what we relate to [the] NWMB."

Soliciting Feedback

The polar bear was last classified as a species of special concern — one step below threatened and two below endangered — in 2002.

COSEWIC, an arm's-length federal scientific advisory committee, recommended the same status for the species in 2008. The federal government has to give a final decision on whether to approve that status.

Scientists on the committee argue that although Canada's polar bear population has improved over the last 50 years, the species' future could be threatened by climate change and receding sea ice.

But one by one, Inuit representatives on Wednesday spoke of the threats polar bears pose to people in Nunavut communities — from bears breaking into cabins and destroying hunting equipment to bears mauling people to death.

Demanding Compensation

Some Inuit even said polar bears have been stealing seals from sealing nets by pulling the nets out of the sea ice.

Delegates at the hearing demanded compensation for lost equipment and destroyed cabins — something the Nunavut government says it is working on.

"We've been directed to have these in place by the new fiscal year," said Chris Hotson, the territorial government's assistant director of wildlife management.

"So between now and then, we'll be talking with communities, and getting your input, on how we can work this."

The Nunavut Wildlife Management Board is required, under the Nunavut Land Claims Agreement, to solicit feedback from Inuit when wildlife regulations are under scrutiny.

The polar bear hearings conclude on Thursday with final submissions. The wildlife board will then be expected to prepare its own position on the COSEWIC proposal by early July.

The board will submit its recommendations to Federal Environment Minister Jim Prentice, who will have 60 days to respond.

"We, too, are worried about polar bears in the future because climate change, it's a huge thing. It's not only going to affect the polar bears, it's going to affect us, so we are concerned too," said Irngaut.

"But we feel that at this time, the polar bear is really being used to combat climate change, and we don't agree with that."
(original link)

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Volcano sparks more flight disruptions

LONDON — A lingering volcanic ash plume forced extended no-fly restrictions over much of Europe on Saturday, as Icelandic scientists warned that volcanic activity had increased and showed no sign of abating — a portent of more travel chaos to come.

Although the ash plume has grown, a northerly wind was expected to allow enough visibility for scientists to fly over the volcano Saturday. Scientists want to see how much ice has melted to determine how much longer the eruption could spew ash. Because the volcano is situated below a glacial ice cap, the magma is being cooled quickly, causing explosions and plumes of grit that can be catastrophic to plane engines if prevailing winds are right.

"The activity has been quite vigorous overnight, causing the eruption column to grow," Icelandic geologist Magnus Tumi Gudmundsson told The Associated Press on Saturday. "It's the magma mixing with the water that creates the explosivity. Unfortunately, there doesn't seem to be an end in sight."

An expansive cloud of grit hovered over parts of western Europe on Saturday, triggering extended flight bans that stranded people around the globe. Continued volcanic activity could produce more plumes if the weather patterns stay the same.

Aviation experts say the volcanic plume has caused the worst travel disruption Europe — and the world — has ever seen.

"I've been flying for 40 years but I've never seen anything like this in Europe," said Swedish pilot Axel Alegren, after landing his flight from Kabul, Afghanistan, at Munich Airport; he had been due to land at Frankfurt but was diverted.

Anxious passengers have told stories of missed weddings, graduations, school and holidays because of the ominous plume, which seemed likely to disrupt world leaders' plans to attend Sunday's state funeral for Polish President Lech Kaczynski and his wife Maria in the southern city of Krakow.

So far, delegations from India, Japan, South Korea, Mexico, New Zealand and Pakistan have canceled plans to attend the state funeral. President Barack Obama, Russian President Dmitry Medvedev and German Chancellor Angela Merkel still planned to attend.

On Saturday, the French prime minister extended the closure of airspace in northern France until Monday morning. British and German officials closed until 0000 GMT (8 p.m. EDT). The Belgian, French and Swiss governments extended their ban until Saturday evening.

Stranded passengers reported the delays were causing financial hardships. Some had to check out of hotels and sleep in the airports.

"I have been staying in a hotel but have now checked out and do not know what I am going to do — I have limited financial resources here," said Anthony Adeayo, 45, who was due to travel from Britain to Nigeria with British Airways.

Eva Macieyow, 33, said she had been due to depart for Germany with a friend.

"We are a little frustrated," she said. "Last night we thought we had a flight ... but now it has been canceled and we know nothing."

Shoppers were warned Saturday that continued flight bans could spark shortages of imported fresh fruit and vegetables.

"There are no shortages yet, but we may start to see certain ranges affected if this carries on," said Christopher Snelling, head of global supply chain policy for the Freight Transport Association.

Italian aviation authorities were closing airspace in northern Italy on Saturday until midday (1000 GMT; 6 a.m. EDT), with airports in Milan and Venice to close.

Denmark and Finland's airspace also remained closed, while Norway and Sweden said some air space in the far north could be opened as the cloud moves south. Air space in the central and southern parts of the Nordics was expected to remain closed at least until Sunday afternoon.

Serbia also closed a small strip of its airspace in the north of the country and said it could close more later. Belarus and Ukraine introduced closures and restrictions.

Australia's Qantas canceled all flights to Europe on Saturday, and passengers were being offered refunds or seats on the next available flight. The airline said it was not known when flights would resume. Cathay Pacific was already canceling some Europe-bound flights leaving Hong Kong on Sunday.

"The British Airways telephone message says check the Web site for updates but when you check the site it says call the customer services number," said James Kirkman, 41, who was visiting family in Australia with his two kids. "There's no information. The kids were due back at school on Monday."

Southern Iceland's Eyjafjallajokull (ay-yah-FYAH'-plah-yer-kuh-duhl) volcano began erupting for the second time in a month on Wednesday, sending ash several miles (kilometers) into the air. Winds pushed the plume south and east across Britain, Ireland, Scandinavia and into the heart of Europe.

Authorities told people in the area with respiratory problems to stay indoors, and advised everyone to wear masks and protective goggles outside.

The air traffic agency Eurocontrol said about 16,000 of Europe's usual 28,000 daily flights were canceled on Friday — twice as many as were canceled a day earlier.

U.S. airlines canceled 280 of the more than 330 trans-Atlantic flights of a normal day, and about 60 flights between Asia and Europe were canceled.

The International Air Transport Association says the volcano is costing the industry at least $200 million a day.

Extra trains were put on in Amsterdam and lines to buy train tickets were so long that the rail company handed out free coffee.

Train operator Eurostar said it was carrying almost 50,000 passengers between London, Paris and Brussels. Thalys, a high-speed venture of the French, Belgian and German rail companies, was allowing passengers to buy tickets even if trains were fully booked.

Ferry operators in Britain received a flurry of bookings from people desperate to cross the English Channel to France, while London taxi company Addison Lee said it had received requests for journeys to cities as far away as Paris, Milan, Amsterdam and Zurich.

The disruptions hit tourists, business travelers and dignitaries alike.

German Chancellor Angela Merkel had to go to Portugal rather than Berlin as she flew home from a U.S. visit. Norwegian Prime Minister Jens Stoltenberg managed to get a flight to Madrid from New York but was still not sure when or how he would get back home.

The military also had to adjust. Five German soldiers wounded in Afghanistan were diverted to Turkey instead of Germany, while U.S. medical evacuations for troops in Iraq and Afghanistan are being flown directly from the warfronts to Washington rather than to a care facility in Germany. The U.S. military has also stopped using temporarily closed air bases in the U.K. and Germany.

In Iceland, torrents of water have carried away chunks of ice the size of small houses. Sections of the country's main ring road were wiped out by the flash floods.

More floods from melting waters are expected as long as the volcano keeps erupting — and in 1821, the same volcano managed to erupt for more than a year.

Iceland, a nation of 320,000 people, sits on a large volcanic hot spot in the Atlantic's mid-oceanic ridge and has a history of devastating eruptions. One of the worst was the 1783 eruption of the Laki volcano, which spewed a toxic cloud over Europe, killing tens of thousands.

Associated Press Writers Naomi Koppel in London, Geir Moulson in Berlin, Angela Charlton in Paris, Raf Casert in Brussels, Slobodan Lekic in Munich, David Nowak in Moscow and Kwang-Tae Kim in Seoul, South Korea, contributed to this report.

Copyright © 2010 The Associated Press. All rights reserved.

Gerald Celente: Economic recovery a cover up

Click this link ...... http://eclipptv.com/viewVideo.php?video_id=11404

Obama Mocks Tea Partiers: ‘You Would Think They’d Be Saying Thank You’

Click this link ....... http://eclipptv.com/viewVideo.php?video_id=11399

Even Clinton Slams Clinton Retreads: Summers and Rubin Must Go

Larry Summers and Robert Rubin served as Secretaries of the Treasury under Bill Clinton (Rubin between January 11, 1995 – July 2, 1999, and Summers between July 2, 1999 – January 20, 2001).

Both conservatives and liberals alike have called Summers and Rubin Clinton retreads.

Both Summers and Rubin were heavyweight players on Obama's transition team. Summers is, of course, now Obama's chief economic adviser.

And Rubin is back in the fold as a key Democratic adviser. As Dan Froomkin writes:

Rubin is leaping back into the Washington policy-making scene next week, with a splashy relaunch of his pet think-tank, the Hamilton Project, housed at the Brookings Institution. As founder of the project, he will deliver the opening remarks and speak on one of the two panels

And the Democratic Party, rather than keep Rubin at an extreme distance, is apparently welcoming him back with open arms. The event's keynote speaker is none other than Vice President Joe Biden...

The Rubinites, amazingly enough, are riding high these days. They feel like they saved the financial world -- at what they consider a relatively low cost. The millions of lost jobs and homes are considered unfortunate collateral damage.

Nevertheless, there's still a lot of legitimate populist anger at the plutocrats who enabled the crisis, profited from it, and walked away intact. And nobody embodies that role better than Rubin.

Everyone paying any attention whatsoever has slammed Summers and Rubin, and pointed out that Summers and Rubin were responsible (along with Alan Greenspan) for the failure to regulate derivatives.

So it is newsworthy that Bill Clinton himself is now slamming Summers and Rubin.

Clinton told ABC that Rubin and Summers were wrong on derivatives:

On derivatives, yeah I think they were wrong and I think I was wrong to take [Summers and Rubin's advice] because the argument on derivatives was that these things are expensive and sophisticated and only a handful of investors will buy them and they don’t need any extra protection, and any extra transparency. The money they’re putting up guarantees them transparency.

“And the flaw in that argument was that first of all sometimes people with a lot of money make stupid decisions and make it without transparency.

These guys were largely responsible for the financial crisis. They must go.

And given that even Clinton is slamming these Clinton retreads, the Obama administration will continue to lose more credibility (and poll numbers) every day that they're kept on as advisers.