Get Out of Dodge!

Obama’s feeble dollar sparks a new goldrush

Joshuah — Mon, 23 Nov 2009 11:31:47 +0000

Gold is at a new high this morning, @ 1,165.96

Visitors to America might have noticed the television ads urging us to buy gold. One such “spokesman”, formerly in charge of managing the government’s hoard of the yellow stuff, including the ingots buried at Fort Knox, points out that the value of gold has never fallen to zero. Why investors are expected to find such a modest claim reassuring I can’t imagine. But something is persuading people to buy gold, driving the price to and past $1,100 per ounce, from about $270 at the beginning of this decade, and around $700 when the financial crisis first hit.

This is not mere panic buying by a herd of small investors trying to benefit from what is called a momentum play. John Paulson (no relation to Hank), the investor who made $20 billion for his hedge fund between 2007 and 2009 by betting on a collapse of the financial and housing markets, is betting on gold in a big way. Paulson & Co already holds $3 billion in gold-related investments (including AngloGold Ashanti and Kinross Gold), and Paulson has just seeded a new gold-related fund with some $250m of his own funds. His modest objective: appreciation at a rate higher than the increase in the price of gold itself.

All of this means that investors do not believe that President Barack Obama will respond to the enormous pressure put on him during his visit to Beijing and take steps to strengthen the dollar. The president and Treasury secretary Timothy Geithner might talk the talk of a strong dollar but they walk the walk of a declining one. A weak dollar should lift exports and cut imports, which in White House terms means jobs for American workers. And it is jobs that the president asks his aides about first thing every morning. With reason.

Should the unemployment rate remain in double digits when elections roll round a year from now, Republicans would gain congressional seats by making the plausible claim that the Democrats’ deficit spending served only to create a debt burden that will weigh down the living standards of our children and grandchildren.

Source/Full Story: Times Online
Technorati Tags: Gold

Hemorrhagic H1N1 in Polk County Iowa

Joshuah — Mon, 23 Nov 2009 11:09:51 +0000

Iowa has officially recorded 21 H1N1 deaths, including seven in Polk County alone. But the county’s medical examiner said he has performed autopsies on some residents who were never diagnosed with H1N1, but actually had it.

“In the autopsy, what we’re seeing is very heavy, wet hemorrhagic lungs, lungs with a lot of blood in them,” said Dr. Gregory Schmunk.

He said the official count of seven H1N1 deaths is inaccurate, but patient rights laws prohibit him from giving specific numbers.

He said there are two reasons for the discrepancy. First, not all sick patients get tests and second, the virus is difficult to detect. Some patients may be too sick to receive the most accurate H1N1 test.

“They’re not always done and it can be hazardous to the patient if they’re in a respiratory critical situation,” Schmunk said.

He also said that some tests reveal a false negative.

Source/Full Story: KCCI
Technorati Tags: H1N1

Germany warns US on market bubbles

Joshuah — Sun, 22 Nov 2009 12:14:32 +0000

Last weekend, Liu Mingkang, China’s banking regulator, criticised the US Federal Reserve for fuelling the “dollar carry-trade”, in which investors borrow dollars at ultra-low interest rates and invest in higher-yielding assets abroad.

Speaking at a banking conference in Frankfurt on Friday, Mr Schäuble said it would be “naive” to assume the next asset price bubble would take the same guise as the last.

He said: “More likely today is a scenario in which excess liquidity globally creates a new [sort of] asset market bubble.”

He added: “That low interest rate currencies such as the US dollar are increasingly being used as a basis for currency carry trades should give pause for thought. If there was a sudden reversal in this business, markets would be threatened with enormous turbulence, including in foreign exchange markets.”

Mr Schäuble, a political veteran, took over the German finance ministry after Angela Merkel began her second term as chancellor last month.

Source/Full Story: FT.com

Radiation leak at Three Mile Island

Joshuah — Sun, 22 Nov 2009 12:01:24 +0000

A radiation leak at Three Mile Island contaminated about 100 employees Saturday afternoon, according to a TMI official.

Source/Full Story: 6abc.com
Technorati Tags: Three Mile Island

Canada: Bankruptcies soar 43%

Joshuah — Sun, 22 Nov 2009 11:56:34 +0000

The number of bankruptcies across the country was 43 per cent higher in September than at the same point a year ago, government data shows.

The latest figures provided by the Office of the Superintendent of Bankruptcy Canada show the increase is disproportionately slanted towards consumer bankruptcies over business insolvencies. The September figure for the former was up by 45.5 per cent in the last year; the latter by only 1.6 per cent.
…
“It’s got to do with unemployment,” he said. “It’s consumer driven in part because unemployment continues to rise, which makes it hard to keep up with bills. But companies are better structured to handle the recession because they weren’t as debt-addled as consumers,” he said.

Source/Full Story: CBC
Technorati Tags: bankruptcy

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Société Générale has advised clients to be ready for a possible “global economic collapse” over the next two years

Joshuah — Thu, 19 Nov 2009 19:59:07 +0000

In a report entitled “Worst-case debt scenario”, the bank’s asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.

Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of “deleveraging”, for years.

“As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse,” said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.

Source/Full Story: Telegraph

Former Monsanto Lawyer Hired by FDA as Key Advisor

Joshuah — Thu, 19 Nov 2009 11:41:46 +0000

A former lobbyist and Monsanto employee who is credited with playing an instrumental role in introducing genetically modified milk and known carcinogens into the U.S. Food supply has been hired as a key advisor for the FDA.

Michael Taylor has been hired to advise Margaret Hamburg, the FDA’s commissioner of food and drugs. In his new position, Taylor will also work with the FDA Center for Food Safety and Applied Nutrition, the Center for Veterinary Medicine, the Office of Regulatory Affairs, Congress and the White House.

Source/Full Story: naturalnews.com
Technorati Tags: Monsanto

Ukraine paralysed by “superflu”

Joshuah — Thu, 19 Nov 2009 11:35:47 +0000

In Ukraine, the alarm phase red has been declared. According to the health authorities, the country has been hit by a new influenza virus that’s more dangerous than the swine (H1N1) flu. It seems to be a new variant that has mutated from the California flu and two seasonal flu viruses. The World Health Organisation (WHO) is still treating it as ‘normal’ swine flu.

Ukrainian doctors who examined two victims spoke of “lungs as black as charcoal”. This description ties in with earlier reports from hospitals in the west of Ukraine. A record number of people have been admitted with very serious bronchial infections, especially pneumonia. Most of the patients reported to a doctor far too late, and died from the effects of the virus.

Life at a standstill
Public life has been at a standstill in the former Soviet republic for several weeks as a result of the severe outbreak of flu that has so far cost the lives of 189 people. All public events are forbidden, schools and universities are shut, and a number of border posts with Slowakia and Russia have been closed.

The WHO is trying to temper the alarming messages coming out of Ukraine. The first results of a WHO investigation into the ’superflu’ did not point to an abnormal situation. Genetic analysis showed that the H1N1 virus was the main cause of the problems. Furthermore, the WHO says it has not mutated, and currently available pandemic vaccine offers sufficient protection.

Government not prepared
The problem is only that Ukraine doesn’t have any vaccine. In the run-up to the pandemic the government didn’t pay sufficient heed to the warnings. The vaccine was not ordered, and the stocks of antiviral drugs are minimal. There has been absolutely no information provided to the public. For ordinary citizens, good healthcare is seldom available. Even domestic medicines are either unaffordable or sold out.

The opposition accuses President Yushchenko of misusing the flu epidemic. It says that by creating confusion and anxiety, he wants to divert attention from the poor state of the economy. In January, the people are due to go to the polls to elect a new president, but because of the flu political meetings are forbidden.

Source/Full Story: Radio Netherlands Worldwide

Experts say radical measures won’t stop swine flu

Joshuah — Thu, 19 Nov 2009 11:14:40 +0000

Health experts say extraordinary measures against swine flu — most notably quarantines imposed by China, where entire planeloads of passengers were isolated if one traveler had symptoms — have failed to contain the disease.

Despite initially declaring success, Beijing now acknowledges its swine flu outbreak is much larger than official numbers show.

China’s official count of some 63,000 reported illnesses with 53 deaths dwarfs estimates of millions of cases with nearly 4,000 deaths in the United States, a nation with about a third of China’s population.

Dr. Michael O’Leary, WHO’s top representative in China, says there has been a dramatic spike in Chinese swine flu cases recently and those reported by the government are only “minimum numbers.”

“We have new cases occurring all the time,” he told The Associated Press last week. “There’s always more deaths than we could possibly know about.”

Source/Full Story: Yahoo! News
Technorati Tags: H1N1

15% of Americans have trouble putting food on table

Joshuah — Thu, 19 Nov 2009 10:41:48 +0000

The number of Americans that have trouble putting food on the table shot up last year in an unprecedented spike to a record 17 million households, the government reported on Monday.

The Department of Agriculture report, which has been released annually since 1995, said the number of Americans that were hungry rose to 14.6%. In 2007, 13 million households or 11.1% of Americans had trouble getting enough food.

The one-year jump is all the more significant, given the number of hungry Americans had never been higher than 11.9% since these surveys began.

Of the near-15% of the nation that couldn’t secure enough food last year, the USDA said one-third of them had “very low food security,” meaning they reduced the amount that they ate or disrupted their eating patterns during the year. That group made up 5.7% of all U.S. households, which was also a record high.

More than 500,000 households that scaled back the amount that they ate were households with children, making up 1.3% of all U.S. homes with children.

The USDA said the main cause of hunger and food insecurity in the country is poverty.

Source/Full Story: CNN

Bank of America, UBS, JPMorgan Sued Over Derivatives

Joshuah — Thu, 19 Nov 2009 10:38:49 +0000

Bank of America Corp., UBS AG and JPMorgan Chase & Co. were sued by a California public utility over claims they rigged sales of municipal derivatives and shared illegal profits through kickbacks.

The lawsuit, filed by the Sacramento Municipal Utility District, is based on federal and state antitrust claims. It alleges Charlotte, North Carolina-based Bank of America and more than a dozen other banks conspired to pre-select winners of municipal derivative auctions, coordinated their pricing, and accepted kickbacks disguised as fees from co-conspirators.

The allegations resemble those made by a U.S. grand jury in New York last month, according to the lawsuit filed Nov. 12 in federal court in Sacramento. CDR Financial Products Inc. founder David Rubin and two employees of the Beverly Hills, California- based company were indicted for allegedly accepting kickbacks on investments sold to local governments. CDR is also named as a defendant in the Sacramento case.

The banks engaged in “allocating customers and markets for municipal derivatives, rigging the bidding process by which municipal bond issuers acquire municipal derivatives, and conspiring to manipulate the terms that issuers received,” according to the lawsuit.

The charges against Rubin and the CDR employees were the first to result from a more than three-year investigation into bid-rigging in the municipal bond market. The probe is continuing and has already drawn in some two dozen banks, insurers and local government advisers.

Source/Full Story: Bloomberg.com

Links

Joshuah — Wed, 18 Nov 2009 11:21:57 +0000

… a growing number of new shoplifters are outwardly reputable, middle-class people who are walking off with French cheeses, quality meats, cosmetics, mobile phones, clothing and other goodies that they feel they need to maintain a quality of life they can no longer afford.

Source/Full Story: Recession Retail Theft: Middle-Class Shoplifters on Rise – TIME

A giant web of video-surveillance cameras has spread across Chicago, aiding police in the pursuit of criminals but raising fears that the City of Big Shoulders is becoming the City of Big Brother.

Source/Full Story: Chicago’s Camera Network Is Everywhere – WSJ.com

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Police Officer Uses Taser On 10-Year-Old Girl

Joshuah — Wed, 18 Nov 2009 11:01:06 +0000

The cop had no choice? How did law enforcement get children under control prior to the use of tasers??? The father is right. If the cop can’t handle a child then he shouldn’t be a cop. The mother should be flogged.

Ozark police said they were called to a home where a mother asked for help with her unruly child, but the 10-year-old’s father said he’s outraged at the force police used against his daughter.

“I would like to say Ozark police Tased this little girl right here. Ten years old and [they] shot electricity through her body, and I want to know how the heck in God’s green earth can they get away with this,” said the girl’s father, Anthony Medlock.

Medlock said his daughter was at her mother’s house when Ozark police Officer Dustin Bradshaw shocked her in the back with a Taser and arrested her.

“If you can’t pick the kid up and take her to your car, handcuff her, then I don’t think you need to be an officer,” Medlock said.

Medlock said his daughter does show signs of having emotional issues, but she “doesn’t deserve to be treated like a dog. She’s not a tiger.”

According to a police report, the officer was called to the home by the mother and witnessed the child kicking and screaming.

The officer’s statement said the girl’s mother, Kelly Hamlert, told him to use a Taser on her if he needed to.

The officer did shock the girl after he said she kicked him in the groin.

“He had no other choice. He had to get the child under control,” said Ozark police Chief Jim Noggle.

Source/Full Story: KHBS

The worst is yet to come: Unemployed Americans should hunker down for more job losses

Joshuah — Wed, 18 Nov 2009 10:36:19 +0000

…
So we can expect that job losses will continue until the end of 2010 at the earliest. In other words, if you are unemployed and looking for work and just waiting for the economy to turn the corner, you had better hunker down. All the economic numbers suggest this will take a while. The jobs just are not coming back.
The long-term picture for workers and families is even worse than current job loss numbers alone would suggest. Now as a way of sharing the pain, many firms are telling their workers to cut hours, take furloughs and accept lower wages. Specifically, that fall in hours worked is equivalent to another 3 million full time jobs lost on top of the 7.5 million jobs formally lost.

This is very bad news but we must face facts. Many of the lost jobs are gone forever, including construction jobs, finance jobs and manufacturing jobs. Recent studies suggest that a quarter of U.S. jobs are fully out-sourceable over time to other countries.

Other measures tell the same ugly story: The average length of unemployment is at an all time high; the ratio of job applicants to vacancies is 6 to 1; initial claims are down but continued claims are very high and now millions of unemployed are resorting to the exceptional extended unemployment benefits programs and are staying in them longer.

Based on my best judgment, it is most likely that the unemployment rate will peak close to 11% and will remain at a very high level for two years or more.

Source/Full Story: nydailynews.com

Deadly flu spreads across Ukraine

Joshuah — Tue, 17 Nov 2009 10:57:24 +0000

The new flu strain, which I contend is spreading in Ukraine and Belarus, is characterized by a lightning form of viral pneumonia — very similar to what happened in 1918. The new flu virus appears to have profound tissue affinity for sialic acid receptors deep in the lungs, replicating in the alveoli. To put it mildly, the lungs fill with blood. Quotes from Ukrainian officials included quotes such as “total destruction of the lungs.” Ukrainian Doctor Viktor Bachinsky has stated, “The virus causing the deaths is extremely aggressive — it doesn’t first infect the throat (as is common in flu), but strikes the lungs directly.” In Ukraine’s western Chernovetsky region, an epicenter of the outbreak, doctors have said lab tests showed at least some of the fatalties appeared to be caused by a flu dissimilar to both common flu and swine flu. In other words, a mutant flu. This claim of a ‘mutant flu’ has been echoed by Ukrainian public health officials such as Dr. Vasyl Lazoryshynetz. Unfortunately, as noted in the above Russia Today video, pharmacies across the country are sold out of antivirals. To the hard of thinking — yes, this is currently happening in Ukraine.

Source/Full Story: zero hedge