Saturday, March 12, 2011

Earthquake dents Japan economy

Japan's economy grew by nearly four per cent last year, its best performance in two decades.But the earthquake which hit the country on Friday is likely have a major detrimental effect on the country's finances.
Al Jazeera's Azhar Sukri reports.

Friday, March 11, 2011

Wall Street Dirty Little Secret

Wall Street Dirty Little Secret

Description: Wall Street is a very dangerous place. And in many ways, it is simply a glorified casino that is designed to enrich investment bankers while stripping you of your hard-earned wealth. In this special 90 minute online and interactive presentation, economist and best-selling author Jerry Robinson is joined by Barry James Dyke. Barry is a seasoned financial advisor and has authored an important book entitled: The Pirates of Manhattan.

Thursday, March 10, 2011

U.S. Trade Deficit Jumps 15.1% In January, Even As Exports Set Record

U.S. Trade Deficit Jumps 15.1% In January, Even As Exports Set Record

The U.S. trade deficit widened an unexpectedly large 15.1% in January, to $46.3 billion from a revised $40.3 billion in December, according to the Commerce Department's monthly statement on the U.S.'s trade balance.

The rise far out-stripped expectations for a January trade deficit of $41.5 billion. The increase was due to increased imports of petroleum products, automotive vehicles and parts, consumer goods, and capital goods, which reached a record monthly level, according to the statement.

Both U.S. exports of goods, at $120.5 billion, and services, at $47.5 billion, actually set monthly records, for a combined increase of 2.7% from December, a fact obscured by the surprisingly large deficit. It wasn't enough, however, to overcome the 5.2% increase in imports.

"The administration is focused on jumpstarting exports and helping U.S. businesses grow and create jobs through efforts like the National Export Initiative and tax credits for business investment," U.S. Commerce Secretary Gary Locke said. "We've now seen private-sector job growth for 12 straight months, and increasing U.S. exports plays a key role in that. We are committed to putting the necessary tools in the hands of America's businesses to help them out-innovate and out-compete the rest of the world and get the U.S. economy firing on all cylinders again."

Wednesday, March 9, 2011

Senior Economist on Food: We Could Certainly See Social Unrest in Parts of the Developed World

Senior Economist on Food: We Could Certainly See Social Unrest in Parts of the Developed World besides the middle east and north Africa ....

Tuesday, March 8, 2011

The Federal Reserve is Laundering Money

The Federal Reserve is Laundering Money

What Makes Gas Prices Soar? More Than Just Oil

It's one of the biggest unknowns in the petroleum industry. Just how do gas station owners decide how much you pay at the pump? A gas station owner near Atlanta offers some answers. (March 8)

Sunday, March 6, 2011

The Outlook for Fixed Income in 2011

What is The Outlook for Fixed Income in 2011 ?
within the fixed income space where do you see the greatest value for investors and what strategies do you suggest ?
what are the possible downside risks in fixed income ?
Doug Forsyth managing director and portfolio manager at AllianzGI Capital answers

Saturday, March 5, 2011

Bernanke Defends QE2 Amid Rising Food-Gas Prices, High Unemployment, Inflation, Uncertainty

END FED: Bernanke Defends QE2 Amid Rising Food-Gas Prices, High Unemployment, Inflation, Uncertainty
QE2 101: How more money will stoke inflation

The new round of quantitative easing announce last week, dubbed 'QE2' by economist wonks, will generate higher inflation, everyone agrees. But how?

By Stefan Karlsson, Guest blogger / November 8, 2010

It is generally assumed, and rightly so, that the new round of "quantitative easing" will generate higher inflation in the United States. But it is rarely explained just why it will do so. After all, QE2 will not be conducted by dropping dollar bills from helicopters.

Well, there are essentially three mechanisms by which it happens: higher money supply, lower money demand and lower supply of goods and services.

1) Regarding money supply, it should be noted that by lowering interest rates, QE2 will boost demand for loans. Higher demand for loans will in a fractional reserve banking system generate a higher money supply. Given a certain level of money demand and supply of goods and services, a higher money supply will result in higher price inflation.

2) Regarding money demand, higher inflationary expectations will cause people to be less willing to hold money (as its real value is expected to drop), thus reducing money demand. And lower money demand has a very similar effect on prices as a higher money supply.

It should be noted though in this context that to the extent that QE2 lowers nominal interest rates, this will increase money demand as the opportunity cost of holding money drops.

So the net effect of Fed bond purchases on money demand depends on to what extent it raised inflationary expectations more than it lowers nominal interest rates.

And it seems that the increase in inflationary expectations is this time somewhat bigger than the drop in nominal yields.

As of this writing, the nominal 5-year yield has dropped 21 basis points since August 31 (from 1.33% to 1.12%) while the inflation indexed 5-year yield has dropped 72 basis (from 0.14% to -0.58%) points since August 31, implying that inflationary expectations has increased 51 basis points (from 1.19% to 1.70%) during that period.

Thus, QE2 has likely reduced money demand somewhat.

3) Regarding the issue of reduced supply of goods and services, it should be noted that to the extent that QE2 reduces the value of the dollar and to the extent that companies adjust prices, it will raise import and export prices, causing a reduction in the inflow of foreign goods and services and increase in the outflow, reducing the supply of goods and services available to Americans.

A lower supply of goods and services will given certain levels of money supply and demand increase the dollar price of goods and services.

In conclusion we can clearly see that by a combination of a higher money supply, a reduction in money demand and a reduced domestic supply of goods and services, QE2 will clearly increase price inflation. The only uncertainty is just how big this effect will be.

Friday, March 4, 2011

Unemployment Dips to 8.9 Pct., 192K Jobs Added

Employers in February hired at the fastest pace in almost a year and the unemployment rate fell to 8.9 percent _ a nearly two-year low. (March 4) provides real statistics.
The real number is 20%+
These numbers are only counts those receiving benefits - when that runs out - you fall off the stats.

Financial Armageddon Coming Soon (2011)

Financial Armageddon Coming Soon (2011) What is the world moving toward quickly? What is coming in 2011? What do many financial experts agree on? What is happening to the U.S.?

Wanna fix the problem? Stop issuing debt as money!! End the Federal Reserve and destroy the financial tyrant. End the Fed and dismantle the international banking cartel thus ending the financial terrorism. Demand an audit of the Federal Reserve!!! The proof is in the books or lack thereof!
Amazing....They think the American people are to held responsible for the trillions swindled away by the banksters. And, all the while money is just made up out of the sky. Let it fall. The leaders of the country are to blame along with the greedy oligarchs. Hilarious that they can even find the audacity to utter the suggestion that the American people are responsible for the money they were robbed of.

Thursday, March 3, 2011

Goldman Sachs Insider Trading: Yahoo Tech Ticker Mar 2. 2011

Rajat Gupta Former Goldman Sachs Dir. allegedly told Pal of Buffett's Goldman investment , he was charged for Insider Trading , the game is rigged

Tuesday, March 1, 2011

Geithner on Mortgage Finance Reform

Mar. 1 2011 | Treasury Secretary gives his opening statement to the House Financial Services Committee on "Mortgage Finance Reform: An Examination of the Obama Administration's Report to Congress."

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