Unfiltered News- Read this and be educated

US: The misnamed Financial “Reform” Bill is said by its sponsors to put an end to bailouts. However, it allows the Federal Reserve to take over a firm, fire its executives, and use taxpayer money to keep the company from going bankrupt. [In other words, instead of ending bailouts, it creates a legal framework that authorizes them in perpetuity without input from Congress. This is reform?]
FrontPageMag.com
2010 Apr 30 (Cached)

UN World Health Organization warns about fraud and corruption within the pharmaceutical industry. [This is a pathetic effort by the fraudulent and corrupt UN to diffuse public indignation over its false flu-pandemic proclamation. It’s like two crooks being tried for a joint crime with one of them squealing on the other in hopes of getting a light sentence.]
Natural News
2010 Apr 30 (Cached)

UK: Government report calls for an international authority such as the UN to geo-engineer the planet – including spraying the atmosphere with chemicals supposedly to block sunlight and reduce global warming. [Aside from the fact that global warming is a myth, governments now are openly discussing a process that has been underway covertly for many years. You have read about it in Unfiltered News described as chemtrails.] Prison Planet 2010 Apr 29 (Cached)

Head of the European Central Bank delivers a speech at CFR meeting and calls for “global governance” led by the Bank of International Settlements in Switzerland, which is to become the central bank of the world. [The New World Order is beginning to take final form.]


Prison Planet
2010 Apr 29 (Cached)

California legislators who favor illegal immigration claim to speak for the state by calling for boycotts against Arizona, which recently passed tough laws to curb illegal immigration.
[They claim their objection is that Arizona police have too much power to stop and question suspects, but this is a ruse. Their voting records show they want to prevent immigration laws from being enforced to hasten the day when Mexico will be merged with the US in what will be called the North American Union.] Christian Science Monitor 2010 Apr 28 (Cached)

US: Oklahoma passes a bill that outlaws recruiting for a militia. [Militias are authorized in the Constitution and represent an important part of homeland security.]

InfoWars 2010 Apr 28 (Cached)

Canada: Plans for the upcoming G20 meeting in Toronto include a “Free Speech Zone” far from the G20 meeting. All protestors will be relegated to that area. [Free speech will be prohibited everywhere else.] CTV 2010 Apr 28 (Cached)

US: Federal agencies issue report that says global warming [a convenient myth] could lead to increased cancer and mental illness and they want funding to look for evidence of it.
[They will get the money and release biased studies to “prove” their theory, thereby, creating even more hysterical support for cap-and-trade taxes.] CNS News 2010 Apr 28 (Cached)



UK: Nursery school confiscates child’s cheese sandwich because it was not “healthy” according to government guidelines. Parents told the sandwich must include lettuce and tomato.
[Admittedly, a bare cheese sandwich is not whole nutrition, but government has no business telling parents what they must feed their kids. Collectivism has no limit.] Daily Mail 2010 Apr 28 (Cached)

US: Federal government to use aerial surveillance drones to monitor drug violence on the Mexican border. [After they monitor it, it would be nice if they actually did something about it.]
Dallas News
2010 Apr 28 (Cached)

Greek bonds are downgraded to “Junk” status, making it even harder for the struggling nation to borrow new money, even at 15% interest. Germany says it will not “let Greece fall” even though the German citizenry is opposed to a bailout.
[Citizen opinion does not count if it gets in the way of bailing out bankers and politicians.] BBC News 2010 Apr 27 (Cached)

Obama administration blocks a congressional subpoena for Fort Hood shooting documents.
[What are they trying to hide this time? No one truly believes this is a matter of national security, unless that is defined as security for corrupt national officials.]
Washington Post
2010 Apr 27 (Cached)

The federal government, having failed to get control of the Internet through the Federal Communications Commission, has quietly placed a provision into pending legislation for “financial overhaul” that will give control of the Internet to the Federal Trade Commission instead.
[Free-Internet advocates are not supposed to notice.] Washington Post 2010 Apr 27 (Cached)

US: Congressman Henry Waxman inserts a provision into the Wall Street Financial Reform bill that will restrict the use of vitamin supplements.
[He and his fellow collectivists hope that, because the cry for financial reform is so loud, the public will not notice or care about this end-run to take away freedom-of-choice to self medicate with something other than drugs.] Alliance for Natural Health 2010 Apr 27 (Cached)

British supermarket tabloid reports that a group of Chinese and Turkish evangelical explorers say they have found wooden remains of Noah’s Ark on Mount Ararat in Turkey. [The accompanying video is impressive, but caution is advised. For evidence that the Ark was made of reeds, not wood, and that it landed 17 miles from Mt. Ararat, see The Discovery of Noah’s Ark, a documentary produced by G. Edward Griffin.] The Sun 2010 April 27 (Cached)

Ukrainian politicians throw eggs, smoke bombs, and punches at each other prior to vote that renewed Russia’s fleet presence in their port on the Black Sea until 2042 — a move bitterly opposed by pro-Western and nationalist lawmakers. Ukraine will get cheap natural gas from Russia in exchange.

Yahoo News
2010 Apr 27 (Cached)

US: Newspaper circulation falls another 8.7% in the last 6 months as readers continue to migrate to free Internet news sources (such as Unfiltered News). The top 25 national newspapers had significant losses. Breitbart 2010 Apr 27 (Cached)

US: New technology has been developed that will allow government health operators to know whether you’ have taken your prescribed medications. [Woe unto you if you have not!] Experts predict that medical devices will be placed in our homes to monitor health habits, blood pressure, and much more. Natural News 2010 Apr 27 (Cached)



Northern Arizona University will track students electronically via ID cards to record if they attend class.
[Almost sounds like a good idea; but, when viewed in terms of the trend of growing collectivism, it is likely that this is just the beginning of a plan to monitor all student activities to determine if they are “worthy” of a degree.] AZ Central 2010 Apr 27 (Cached)

US: Amish farmer raided by FDA at 4:30 in the morning for selling raw milk in interstate commerce. Daily Caller 2010 Apr 26 (Cached)

American and Russian scientists have discovered that hamsters fed Genetically Modified food have serious health impairment in the second generation and, by the third generation, are unable to procreate. In other words, they can have children and grandchildren but that’s the end of the line.
[Will this same effect be found in humans? Monsanto and other GMO companies claim they intend to put an end to hunger. One cannot help but wonder if they plan to do this by putting an end to people.]
Salem News
2010 Apr 26 (Cached)

US: Documents reveal that a top official in the Office of Energy Efficiency stands to make huge profits from her investments in companies that benefit from policies and contracts that she authorizes. [Unfortunately, this is not a rare occurrence in collectivist governments, especially among corrupt politicians and scientists parading under the banner of environmentalism.] Pajamas Media 2010 Apr 26 (Cached)

US: Department of Energy report suggests oil supply will crash in 18 months.
[A little skepticism is in order. Why? Because this prediction comes from the government, and because the government is heavily influenced by the oil industry, and because the oil industry has been promoting the “peak-oil” line for at least a decade, and because that line creates a plausible explanation of shortages that really are caused by the industry’s cutback in production, and because shortages lead to a rise in the price of oil, and because a rise in the price of oil leads to sustained profits for the oil companies while actually decreasing production.]
Market Oracle
2010 Apr 26 (Cached)

Americans from all walks of life, mostly without prior political experience, are running for political office to take back power from the elitists in Washington.
[We need lots more of the same, especially at the state level. What are YOU doing that’s more important?] WND 2010 Apr 26 (Cached)

Australian baby dies 12 hours after receiving seasonal flu shot; national health authorities issue orders to block vaccinations of children 5 years old and younger. Adelaide Now 2010 Apr 25 (Cached)



Arizona Congressman says federal government should fight his state’s new law to clamp down on illegal immigration. He is supported by Obama and thousand of local protestors. LATimes 2010 Apr 25 (Cached)

US: Illinois state legislators have asked the Governor to send the National Guard to Chicago to quell street violence.
[It is sad to see people ask for martial law in return for security. That is why would be totalitarians deliberately undermine social tranquility.] Chicago Breaking News 2010 Apr 25 (Cached)

US: A bill is now pending in the Senate that would give control over all American seed, health supplements, food, and farming to the UN. It is believed to have been designed by a former executive of Monsanto who now is at the UN to administer it.
Food Freedom 2010 Apr 24 (Cached)

EU bureaucrats want poor families to have tax-paid travel vacations because they say it is a human right. [They are silent on the human right not to have your earnings taken to pay for the pleasure of those who outnumber you at the polls.] Sun-Times 2010 Apr 24 (Cached)

Facebook, the fastest growing social network, has been actively seeking ties with government intelligence agencies. Meanwhile, the company assures the public that privacy is its top priority.
Social Beat Posted 2010 Apr 24 (Cached)

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ANALYSIS
Reports and commentaries that look beyond the news to identify historical facts and trends that must be understood to place the news into perspective. This is our “think-tank” section that makes it possible to anticipate future events.

US: Short video program, entitled “Policing for Profit” explains the growing trend for police at all levels of government to permanently take your personal property (homes, cars, cash) if they suspect it was used to commit a crime even if you are never tried or convicted of that crime.
Institute For Justice
2010 Mar 30 (Cached)

G. Edward Griffin explains the philosophy and strategy of Freedom Force International.
YouTube
2010 Apr 27

Just discovered: 2007 interview of G. Edward Griffin in Norway upon publication of the Norwegian edition of his book, World without Cancer. Google Posted 2010 Apr 25

Journalist uncovers massive fraud in global humanitarian aid industry. Book details how aid organizations help to prolong wars and benefit the perpetrators of genocide rather than their victims.
Guardian 2010 Apr 25 (Cached)

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Tsunami alarm: Tarpley predicts 2nd wave of global crisis emerging from Greece

With Greece’s debt mounting by the day and the United States starting to recover from the worst financial crisis since the Great Depression, will there be a ripple effect from Greece’s troubles? While U.S. cities and towns wrestle with financial problems, investors are finding a new way to profit on their misery: by buying derivatives that essentially bet municipalities will default.

Bob chapman- Get out of stocks and bonds

The collapse of the financial system is under way, a giant debt that will never be repaid, deliberate destruction of the economy, bailouts a part of the manipulation of the markets, More creative forms of destruction for the economy, Wall street a criminal enterprise, Goldman CEO visits the White House, often, another giant Ponzi in Florida…

As the world faces an ongoing sovereign debt debacle we see an attempt to defuse an oncoming scandal involving Goldman Sachs, Paulson and perhaps others.

The collapse of the fiat money system is underway and each day picks up momentum. The only question is how long it can survive? In the interim we are faced with inflation and perhaps hyperinflation as the privately owned Federal Reserve and other central banks add stimulus and money and credit into their financial systems.

America’s system of finance and economy has been deliberately destroyed via regulation, illegal immigration and free trade, globalization, offshoring and outsourcing. We wrote about these issues and tactics as long ago as 1967. Taxes on both individuals and corporations are still onerous, the exception being the rich who pay far less than their fair share. By the way taxes will increase in the future and government may in the future attempt to take away your retirement plans and replace them with guaranteed annuities. We ask how can a bankrupt government guarantee anything? America and the rest of the world are realizing that you cannot live beyond your means indefinitely. The resultant poverty that eventually results is accompanied by the theft of wealth by inflation, subtly and secretly.

We have witnessed over the past few years a long line of frauds that usually accompany the collapse of a system. They are accompanied by government malfeasance and the arrogance of those who defraud the system with impunity. How can any nation survive if their currency and their bonds are worthless?

Someone’s loss is someone else’s gain and in this turmoil you can do two things. One is to protect your assets and the other is to capitalize on your knowledge. Do not allow the elitists to take your hard earned savings. It is our belief that 60% of sovereign debt will never be repaid.

The government is injecting a minimum of $1.5 trillion into the economy each year, as the Fed is adding at least $1 trillion. We are facing an end to stimulus and further Fed injections. If that happens it will thrust the US economy into a great dark pit a year from now. Then the insolvency of banking, Wall Street and government will become very apparent. What government has done is lie about everything, especially the amount of money they have thrust into the economy, via bailouts of the entire financial sphere and the manipulation of markets. If they had not done what they did the system would have collapsed long ago. What they have done has only delayed the inevitable. As we look back 50 years all we have seen is one crisis after another. There has never really been a meaningful recovery. The result is that Keynesian economics has had American economy on a roller coaster going nowhere. We have wasted opportunities and have destroyed our financial and economic structure to provide for the enrichment of the elitists who from behind the scenes control our economy and the world economy. G-20 debt is staggering, never mind US debt and worse yet, it is unpayable. The so-called recovery we are having is a sad joke. We have just had an interlude in an inflationary depression. The next phase is higher taxation and even more government control. Need we remind you that fascism is government by regulation and this is what we have in America today. Its evolution is a subtle, secret, strangling process. If only people would read the history of Europe during the late 1920s and throughout the 1930s and 40s, you would truly understand what is in process. You must remember Hitler was created at Versailles. Illuminists in the US, UK and across Europe financed both Hitler and Mussolini. Both did not have a clue they were being set up. This is the same thing that is happening in America today and in other countries as well.

We face one round after another of creative destruction. That is why we have real unemployment of 22-1/8%, almost as bad as during the 1930s. Banks are only selectively lending, so as a result the economy cannot grow. Inflation is 8%; wages are static, so buying power has been crippled. This predicament should be called corporatist fascism or socialism for the elitists and as a result 92% of small business polled said they see no recovery for 14 to 18 months. How can those who hire 80% of workers create new jobs – they cannot and won’t. That means there can be no sustained recovery.

This leads us to the frauds on Wall Street and banking. We have pointed out for some time that Wall Street and banking had turned into a criminal enterprise. They always skated down the edge, but nothing like what we have seen over the past 20 years. Having been in the brokerage industry for 28 years and around it for 50 years we have been in a position to observe it closely. Today it’s massively rife with criminality. The exposure of Lehman’s crimes in hearings has been unprecedented. We wonder how many other firms did the same thing and their actions were covered up by the Fed and the SEC, as well as the CFTC? They are still underestimating debt levels by 40 to 50 percent, which means their focus reports are useless. The spirit of honesty and integrity still doesn’t exist. They are essentially keeping two sets of books and that makes their financial statements useless and fraudulent. That doesn’t bother the SEC, the BIS, the FASB, the Treasury or the Fed; they supervise the lawbreaking. Debt levels are massively understated by keeping two sets of books and by marking-to-model, fantasy, not to market. All of this is a result of the termination of the Glass Steagal Act. It is all fraud, even if the government sanctions it. They are all acting in concert to screw the investor and the public. These people are all criminals. The excuse is that they are too big to fail. It is all fraud no matter which way you cut it. This is a criminal syndicate that should legally be out of business – bankrupt. They are all being bailed out, but we do not see the public being bailed out. The bailout of banking, Wall Street and insurance is still in process and there is no end in sight. There are two sets of laws. One for the Illuminists/elitist and another for us. Congress won’t do anything about it because most of them have been paid off. That is what campaign contributions and lobbying are all about. We espoused these views in university almost 60 years ago, and the only reason our views were tolerated was that we had two uncles who were professors at the university.

Taxes will rise substantially this year and next year because your representatives and senators know the government is broke. Among other things the medical reform bill is a tax bill as well.

Government is the problem but they are really useful idiots. The real power lies with the Illuminist behind the scenes. The financial sector is broke and it is unfixable. They know that and they are trying to stretch out the problem as far as possible to pick the right date to pull the deflationary plug.

If all this weren’t bad enough the Dodd bill in the Senate would create a permanent bailout mechanism that would create more risky behavior that would lead to perpetual bailouts for the financial industries. This is not financial reform, it is more corporatist fascism. To show you how bought and paid for Senate Banking Committee members are, the bill was voted out in 22 minutes with no amendments and no debate allowed. That is not democracy in action. The bill will now be rushed to the floor and passed.

The bill would also create a $50 billion bailout slush fund controlled by the FDIC and a new FDIC tax would be implemented on banks, which, of course, would be passed onto the public in higher banking costs.

The bill would also bail out creditors of companies. The slush fund would cover that as well. They call this riskless investment for corporate America and any bills would be picked up by the banks and passed on to Americans. We will then have hundreds or thousands of AIGs and GM’s. You ask yourself where does this all end? Read the history of the late1920s and into the 1930s of Italy and Germany and you will find out.

As the Senate and the House do the work of the bankers the bond market is in the process of sinking as yields rise. Higher rates, which we predicted last November, will become reality by the end of the year. A move by the US 10-year note from 3.20% to 4.5% or 5% will be the kiss of death for the mortgage industry. The 10-year yields 3.79% and the 30-year fixed rate mortgage is 5.07%. If 10’s go to 4.5%, mortgages will rise to 5.80% and a 5% ten-year note would work out to a 6.3% 30-year.

An increase in rates from 5.07% to 6.07% would add 19% to the total cost of a home, which means that any long-term recovery in housing is out of the question and that residential values would have to fall further as fewer and fewer people could qualify for loans. In fact, all loans would become more expensive, such as for business, credit cards, auto loans, etc. That 1% will increase debt service for the government by about $150 billion a year. This frankly presents the best of all worlds. If foreigners, such as the Chinese, Japanese or Russians became aggressive US bond sellers rates would climb considerably higher, inflicting even more damage to the economy and to US debt.

Most of you do not remember but mortgage rates hit about 18% in 1981, as official inflation hit 14-1/2%. Gold peaked out at $850, some six months earlier. On today’s mortgages that would triple payments on new mortgages and resets. As happened in 1981 the real estate market came to a standstill. Such an event would come when existing household debt is considerably higher. Debt today is already near 90% of GDP. Government debt is colossal, growing every minute and it is unpayable.

The bond market is going down and yields are going up and that is not good. The rise in interest rates has historically brought about higher gold and silver prices, because higher rates bring higher inflation. As we have said over and over again the only safe and profitable place to be is in gold and silver related assets. The storm is now just getting underway.

The MBA Mortgage Purchase Applications Index is 10.1%. The refi index was up to 15.8% versus 9.0% the prior week. The 30-year fixed rate mortgage was 5.04% and the 15’s were 4.34%.

The Treasury will sell $128 billion in notes next week, which is unprecedented. Talk about crowding out.

Governments worldwide will probably issue $4.5 trillion in debt this year, which is triple the 5-year average for industrial nations. Forty-five percent of that debt will be issued by the US.

We are told Russia and China are selling Treasuries and buying gold.

The US commercial paper market rose $1.5 billion to about $1.076 trillion this week.

Our sources within the banking industry tell us that 3-5 bank, First Source, Horizon and several others are in trouble. These are banks that refused TARP money. They have been told to expect an audit and that no further support can ever be expected from the Fed again. Auditors have already hit some of these banks and threatened them. One bank was told they were under capitalized and they were not. They arranged an additional line of credit with another bank and the Fed backed off. This criminal extortion is part of the move to eventual bank nationalization. The industry is hanging by a thread, as huge interest rate increases loom. The system lives on virtual money and that can only end up in real trouble. Again, do not hold CDs, annuities or cash value life policies, especially large balances. Not only banks will go under, but also so will insurance companies.

McClatchy: While Goldman Sachs’ lawyers negotiated with the Securities and Exchange Commission over potentially explosive civil fraud charges, Goldman’s chief executive visited the White House at least four times.

White House logs show that Chief Executive Lloyd Blankfein traveled to Washington for at least two events with President Barack Obama, whose 2008 presidential campaign received $994,795 in donations from Goldman’s political action committee, its employees and their relatives. He also met twice with Obama’s top economic adviser, Larry Summers.

Lawrence Jacobs, a University of Minnesota political scientist, said that “almost everything that the White House has done has been haunted by the personnel and the money of Goldman. as well as the suspicion that the White House, particularly early on, was pulling its punches out of deference to Goldman and its war chest.

“There’s now kind of a magnifying glass on the administration for any sign of interference or conversations with the regulators and the judiciary,” Jacobs said.

http://www.mcclatchydc.com/2010/04/21/92637/goldmans-connections-to-white.html

Goldman Sachs was both an underwriter and an investor in Lloyds Banking Group’s vast refinancing deal late last year, the FT has learned, highlighting the potential conflicts of interest at the heart of the investment bank’s business model.

According to four people involved in the capital raising, Goldman – a dealer manager on the debt portion of the £23.5bn transaction – demanded last-minute changes to the structure of a deal it was underwriting. This had the effect of benefiting its position as a bond investor.

A Goldman director tipped off Galleon’s Raj Rajaratnam about a $5 billion investment in Goldman by Berkshire Hathaway before a public announcement.

The revelation marks a significant turn in the government’s case against Rajaratnam, the hedge-fund titan at the center of the largest insider-trading case in a generation.

After the SEC tagged Goldman, we opined that Bubblevision, or for that many virtually all pundits and media types, did not mention Buffett’s association with Goldman or how Buffett demanded and got heads after the Salomon-Treasury Auction rigging scandal. Maybe now someone will ask Warren about Goldie.

Buffett spokesman, Thomas Murphy surfaced last night, to say Buffett has ‘great confidence’ in Goldie.

U.S. mortgage applications bounced from three-month lows last week as potential buyers locked in lower borrowing costs before the federal tax credit expires, the Mortgage Bankers Association said on Wednesday.

Thirty-year mortgage rates dropped to hover around 5 percent, stoking home loan demand after applications slid for two straight weeks.

Refinancing picked up by 15.8 percent to represent 60 percent of all applications last week. Demand for loans to buy a home increased 10.1 percent to send the industry group’s total applications index up 13.6 percent on a seasonally adjusted basis.

“Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the homebuyer tax credit, and are up modestly over last month,” said Michael Fratantoni, MBA’s vice president of research and economics.

Falling Treasury yields, used as a peg for mortgage rates, helped reduce the average 30-year loan rate by 0.13 percentage point to 5.04 percent.

The rate was up to 5.31 percent two weeks earlier, the highest since August 2009, and remains above the record low of 4.61 percent set in March of last year.

Harsh winter weather sapped housing demand in the first months of the year. The initial wave of the homebuyer tax credit, extended and broadened late last year, were seen having robbed some of this year’s demand.

But some signs have emerged that buyers are surfacing to lock in the credit while they can. If they qualify for the incentives of up to $8,000, they need to have home contracts signed by the end of April and close loans by June 30.

Permits to build houses, for example, in April shot up to the highest level since October 2008. To read more, see [ID:nN16220782].

At best, though, housing is widely seen hovering around current weak levels at least through the year. The market still needs to work through a record stockpile of foreclosed properties, which RealtyTrac forecasts could drag into 2013. Read more at [ID:nNYS007912].

Jack Pritchard, Charlotte, North Carolina-based co-founder of Refinance.com, sees rising mortgage rates later this year and the expiration of the tax credits cutting into home sales and refinancing.

“The spring housing season, even with the tax credit, would be considered stable — but stable at the bottom,” he said.

“You’ve got a consumer trying to time the ultimate bottom in real estate prices and you still have extremely tight credit standards for consumers to qualify,” Pritchard added.

FOX Business Network has expanded its quest for documents from the Federal Reserve in order to shed light on which financial firms borrowed funds during the financial crisis.

The network filed its new suit this afternoon in New York requesting documents from the Federal Reserve Board of Governors that will name each financial institution that borrowed from the various emergency lending facilities from November 1, 2008 through March 1, 2010. FOX Business originally sued the Fed for those documents but for a time period that ended on November 1, 2008.

The network scored a major victory in the original suit when the second circuit court of appeals ruled that the Fed had to turn over the requested documents. The Federal Reserve is expected to ask the court to reconsider the case and has said it is willing to take the case to the Supreme Court if necessary to protect the identity of the firms which received billions in taxpayer-backed guarantees.

The new suit expands the date through 2010 to learn which firms continued to seek emergency lending after the initial crisis had passed. FOX Business is also attempting to learn how much each individual institution received.

The U.S. Federal Reserve said on Wednesday it transferred a record $47.4 billion to the U.S. Treasury in 2009 as a result of its programs to help the economy and financial firms during the financial crisis.

The increase in income was primarily due to interest earnings on mortgage-backed securities issued by government supported mortgage finance agencies, the Fed said.

Some of the data in the Fed’s 2009 annual financial statement revises estimates released in January.

The 12 Fed regional banks are required to transfer their profits to the Treasury after paying dividends to member banks and retaining some of their surplus.

Fed officials said the U.S. central bank’s payment to the Treasury in 2009 was a $15.7 billion, or 50 percent, increase over 2008. The previous record was $34.6 billion in 2007, and the pre-crisis level was around $20 billion, Fed officials told reporters.

The Fed took unprecedented actions to prop up the economy during the storm but has been under fire from lawmakers on Capitol Hill over financial firm bailouts and regulatory lapses.

The credit risk on the Fed’s balance sheet is down sharply as its loans have decreased and Treasury and government-sponsored mortgage finance agency securities make up a larger share of the central bank’s assets, a Fed official said.

Financial reforms are a top priority for President Barack Obama, and news that the U.S. central bank has been profitable for taxpayers may strengthen the Fed’s hand as lawmakers decide whether to enhance its powers over banks.

A Senate committee on Wednesday approved a bill aimed at reforming the derivatives market, moving the Senate one step closer to passing sweeping regulation over the $450 trillion derivatives market.

The Senate Agriculture Committee approved the legislation by a vote of 13 to 8, with one Republican, Charles Grassley, breaking ranks to vote with Democrats.

The measure, part of the Democrats push to crack down on Wall Street, is expected to be merged into a broader bill from the Senate Banking Committee. A full Senate debate is expected by next week.

Its passage through the committee was a first test of how strongly Democrats are willing to push reform and how easily Republicans may be prepared to play ball.

Regulators charged a Miami Beach, Florida, philanthropist with fraud for allegedly running a $900 million Ponzi scheme, the Securities and Exchange Commission said on Wednesday.

Nevin K. Shapiro, a major donor to the University of Miami’s sports program, sold investors securities that he claimed would fund his Capitol Investments firm’s grocery business and touted returns as high as 26 percent annually, the SEC said.

Instead, Shapiro repurposed funds, making extravagant donations to charities and running a Ponzi scheme where he used funds from new investors to pay the principal and interest to earlier investors, the SEC said.

The 41-year-old Shapiro surrendered to authorities Wednesday morning in New Jersey, his lawyer said.

According to the SEC, Shapiro used at least $38 million of investor funds to finance other business activities and a lavish lifestyle, including a $5 million home in Miami Beach, expensive clothes and season tickets to sporting events.

To raise funds, Shapiro attracted investors through word of mouth from friends and business associates, and reassured investors by boasting of his wealth, the SEC said.

When investors questioned Shapiro, he showed them fabricated invoices and purchase orders for nonexistent sales, the SEC said.

Existing home sales increased by 6.8%, good for a total of 5.35 million units, in March, thereby reversing three months of declining sales. This growth beats market forecasts of a more modest 5.6% increase. 

In related data, the US housing price index fell 0.2% in February. This marks the third consecutive month of falling home prices.

The Producer Price Index for the US grew 0.7% in March, beating forecasts of a 0.5% rise over February’s 0.6% decline. 

Year-over-year, the PPI increased 6.0% in March compared to February’s annual 4.4% boost. This growth is in line with expectations. 

The PPI excluding food and energy prices rose an expected 0.1% in March, thereby matching February’s rate. 

Year-over-year, the PPI excluding food and energy increased as forecast by 0.9% in March, slightly down from February’s 1.0% growth.

February Housing Price Index declines 0.2% MoM in March vs a 0.6% decline in February

The number of Americans filing claims for unemployment benefits fell last week as the rebounding economy prompted companies to make fewer job cuts.

Initial jobless applications dropped by 24,000 to 456,000 in the week ended April 17, the Labor Department said today in Washington. The number of people receiving unemployment insurance and those getting extended benefits also fell.

Employers enjoying improved sales and profits may be gaining confidence in the economy and retaining staff. A transition from less firing to consistent job growth will ensure the recovery from the deepest recession since the 1930s is sustained.

“The state of the job market is firming,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston, who forecast claims would fall to 458,000. Companies are “actually retaining headcount and growing.”

Economists anticipated claims would fall to 450,000 from a previously reported 484,000 the prior week, according to the median of 47 projections in a Bloomberg News survey. Estimates ranged from 430,000 to 480,000.

Sales of U.S. previously owned homes rose in March for the first time in four months as buyers took advantage of a government tax credit and the weather improved. Purchases climbed 6.8 percent to a 5.35 million annual rate, exceeding the median forecast of economists surveyed by Bloomberg News, data from the National Association of Realtors showed today in Washington. New applications for jobless benefits declined and producer prices rose, Labor Department reports showed.

A homebuyer incentive worth as much as $8,000 for contracts closed by the end of June may provide a short-term boost to the industry that helped trigger the worst recession since the 1930s. Housing’s outlook for the second half of the year will be linked to a rebound in hiring, indicating a recovery will probably take years to develop as foreclosures climb.

Max Keiser- Financial NEWS & Hollywood Stock exchange

Goldman Sachs loyd blankfin must die, he’s satan, the liar and must be publicly executed and desecrated on wallstreet. Personally, goldman sachs is financial terrorism and should be considered treason against the United States and be executed. But it will never happen, unless we execute half of congress with them.

He talks about Hollywood stock exchange and the future fraud about to come and the collapse of it.

Peter Schiff- honest econmic analysis of US & China

April 23, 2010

To Peg or Not to Peg?
By Peter Schiff

While I attended an economic conference last week in Shanghai, I found it notable – but not surprising – that two former Secretaries of the Treasury, John Snow and Hank Paulson, as well as current Treasury Secretary Tim Geither, and former President George W. Bush were then in the country at the same time. The fact that so many key American power brokers (myself not included) were in China simultaneously is no coincidence. In an overly indebted world, the $2.5 trillion that China holds in foreign reserves is acting as a center of economic gravity, inexorably pulling all market participants into its orbit.

When a 10-ton elephant plods through a village of grass huts, the big question on everyone’s mind is: which way is he going to turn next? With China, that fundamental question translates to guessing when Beijing will make changes to the value of the yuan. These decisions will determine the overall direction of the global economy, and will set the path that everyone must follow. Unfortunately, no Americans, even those who travel hat-in-hand to China, have a seat at the table where these decisions are being made.

At the risk of beating a dead horse, let me reiterate my central thesis with respect to currency valuation: just as it is always better to be rich than to be poor, it is always better to have a strong currency than a weak one. Although this simple maxim puts me into conflict with much of the economic establishment, I hold its truth to be…well…self-evident.

The effect of current Chinese currency policy (which, despite Beijing’s protests to the contrary, is manipulation pure and simple) is to make the U.S. dollar more valuable and the yuan less valuable. As a result, the benefits of manipulation accrue to Americans, not the Chinese. We get pay raises; they get pay cuts. Americans use their stronger dollars to buy products they would otherwise not have been able to afford. On the flip side, the Chinese people do without products that they otherwise would have been able to afford had their government not transferred their purchasing power to us.

The same effect is experienced with interest rates. In order to manipulate the dollar’s value higher, the Chinese government has gobbled up more than $1 trillion of them.The Chinese then loan the dollars back to the U.S. through purchases of government and mortgage-backed debt, which reduces the cost of servicing our massive liabilities.

By the same token, if China were to stop manipulating the dollar higher, it would remove the props currently supporting our dysfunctional economy. American interest rates and consumer prices would soar, and our economy would collapse. Meanwhile, China would experience the opposite effect. Chinese consumer prices would fall, immediately raising living standards for average Chinese workers, whose higher real wages would finally allow them to fully enjoy the fruits of their labor.

What strikes me as particularly dangerous is that no one, not even the Chinese, appear to understand these fundamental dynamics. All of the Shanghainese with whom I spoke last week were unaware that a stronger yuan would be in their own best interest. The way most people see it, a stronger currency is a bullet that China must be prepared to take in order to save the rest of the world from further pain.

And so we watch the strange spectacle of China stubbornly resisting actions from which it will immediately and substantially benefit. In reality, an appreciating yuan is the bitter medicine Americans must swallow if our sick economy is every to regain its health.

When Beijing finally comes to it senses, the transition will be unavoidably disruptive. For China, the long-term growth would far outweigh the short-term shock. America, however, would face a much less certain outcome. There is no question that, for Americans, the immediate effects would be very painful, with the gains only developing with time and prudent decision-making. Still, that does not mean we should resist the process, for the longer it is delayed, the more severe the pain and the longer the road back to prosperity.

Given this reality, why are our political leaders so adamant that China effectively pull the rug out from under our economy? Are they really that clueless? Perhaps they are – or perhaps they are a bit more devious. Perhaps they are using reverse psychology. Maybe they feel that the best way to get the Chinese to maintain the peg is to demand that they remove it. Historically, the Chinese have always resisted outside interference.

However, to paraphrase Abraham Lincoln, you cannot fool all of the Chinese all of the time. Soon they will see the light, and when they do, it’s lights out for American hegemony. If you think China is important today, just wait a few years. For example, while the Chinese automobile market is now the largest in the world, 90% of Chinese car buyers pay cash. In contrast, only 15% of American car buyers do so. In other words, Chinese consumers can actually afford their cars, while most Americans cannot. Without huge car payments, Chinese consumers are in much better shape not only to trade up to newer cars in the future, but to purchase other products as well. This suggests huge future growth, not only in automobiles but also in other consumer products as well.

This eruption of consumer demand, made possible by pent-up savings, is creating historic opportunities for investors. When the Chinese start using their wealth to expand their own economy rather than to subsidize ours, infrastructure may well be a primary beneficiary.

Whenever the Chinese government decides to end the peg, the Chinese economy will benefit as a result. While as citizens we can hope that U.S. leaders respond with the right policies to enable our economy to regain its former glory, as investors we should position ourselves to benefit from the more certain outcome.


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