News
Archives, November 25-28, 2007
Wednesday,
November 28th, 2007
- Forecast:
U.S. dollar could plunge 90 pct
RHINEBECK,
N.Y. (UPI) -- "A
financial crisis will likely send the U.S. dollar into a free fall of
as much as 90 percent and gold soaring to $2,000 an ounce, a trends
researcher said.
"We are going to see economic times the
likes
of which no living person has seen," Trends Research Institute Director
Gerald Celente said, forecasting a "Panic of 2008."
"The bigger they are, the
harder they'll fall," he said in an interview with New York's Hudson
Valley Business Journal.
Celente
-- who forecast the subprime mortgage financial crisis and the dollar's
decline a year ago and gold's current rise in May -- told the newspaper
the subprime mortgage meltdown was just the first "small, high-risk
segment of the market" to collapse.
Derivative dealers, hedge
funds, buyout firms and other market players will also unravel, he said.
Massive
corporate losses, such as those recently posted by Citigroup Inc. and
General Motors Corp., will also be fairly common "for some time to
come," he said.
He said he would not "be
surprised if giants tumble to their deaths," Celente said.
The Panic of 2008 will lead to
a lower U.S. standard of living, he said.
A
result will be a drop in holiday spending a year from now, followed by
a permanent end of the "retail holiday frenzy" that has driven the U.S.
economy since the 1940s, he said..."
More:
Wells
Fargo to take $1.4 billion charge for bad loans
Freddie
Mac cuts dividend, slates $6 billion preferreds
US house prices
continue to slide
The
Bottom Line: Even the usual-skeptics are deeply worried.
- Gestapo in America: Children herded
into Maryland courthouse for forced vaccinations
Maryland (NewsTarget) - "Following
the State of Maryland's threats against parents
who refuse to have their children vaccinated, children were herded into
a Price George County courthouse being guarded by armed personnel with
attack dogs. Inside, the children were forcibly vaccinated, many
against their will, under orders from the State Attorney General,
various State Judges and the local School Board Director, all of whom
illegally conspired to threaten parents with imprisonment if they did
not submit their children to vaccinations.
The State of Maryland
has now turned to Gestapo tactics to force its medical will upon the
People, stripping parents of any right to decide how they wish to
protect their own children from infectious disease. Health authorities
there have already announced their intent to essentially kidnap parents
and throw them in jail, removing them from their children for up to
thirty days if they continue to refuse to have their children
vaccinated. This will all be conducted at gunpoint, with armed
personnel and attack dogs at the ready, making sure nobody steps out of
line, and suppressing any attempt at public dissent against the
Orwellian vaccination policies.
The entire campaign against
these parents is blatantly illegal. There is no law in Maryland
requiring the vaccination of children, thus parents who refuse to do so
may not be legally charged with violating any law. Instead, Maryland
health and school authorities are using Gestapo-like tactics,
threatening to charge the parents with child truancy violations,
criminalizing them for daring to protect their children from the
dangerous chemicals found in vaccines (including thimerosal, a chemical
additive containing a neurotoxic form of mercury).
The
desperation of organized medicine is becoming increasingly apparent.
As
more and more parents are becoming informed about the dangers of
vaccinations and their link to autism, state health authorities are
increasingly turning to "Gunpoint Medicine" to force the People to
submit to the poisons of conventional medicine. Parents who attempt to
save their children from deadly chemotherapy chemicals are being
arrested and having their children kidnapped by Child Protective
Services (see http://www.newstarget.com/Abraham_Cherrix.html
), and oncologists who used to be armed only with radiation machines
and chemotherapy injectors and now arming themselves with U.S. Marshals
and other local law enforcement authorities who are using loaded
firearms to enforce "the will of the State" against parents who
resist..."
More:
Massachusetts
Proposal Would Outlaw Spanking
The
Bottom Line:
Nanny State or Police State? Josef Mengele would be proud.
Orwell is
looking more and more like a prophet who was a tad premature in his
date-setting.
- Oil extends fall to below $94
SINGAPORE (Reuters) - "Oil extended
losses to below $94 on Wednesday,
after falling 3 percent a day ago, dragged lower by hopes of a rise in
OPEC production and negative U.S. economic data.
U.S. oil fell 63
cents to $93.79 a barrel by 11:07 p.m. EST, after tumbling $3.28 on
Tuesday. London Brent crude shed 58 cents to $91.94 a barrel.
"It's difficult to buy
oil when you know that the market is worrying
about a recession in the world economy, especially in the United
States," said Ken Hasegawa, commodity derivatives sales manager of
Fimat Japan Inc.
U.S. consumer confidence
fell for a fourth-straight month in
November to a two-year low, on concerns about rising gasoline prices
and financial market volatility.
Market concerns that a
slowdown in U.S. economic growth could crimp
oil demand in the world's top energy consuming nation have weighed on
crude's record rally, as have prospects that OPEC could agree to ramp
up output at a meeting next week.
Iran will put forward
"new initiatives" at its talks in London on
Friday on the country's atomic plans, also helping oil prices to ease.
But some traders were skeptical that
OPEC will increase production,
noting some ministers have said supplies were sufficient to meet
demand..."
The
Bottom Line:
FINALLY some good news; well, sort of good. $90 a barrel or more
isn't
exactly good, so ok...not so great. Hey, at least it isn't bad.
Tuesday,
November 27th, 2007
- Don't
look now: Here comes the recession
NEW YORK
(Fortune) -- "The cash
registers were ringing on Black
Friday, but make no mistake: American consumers are jittery, and seem
all but certain to push the U.S. economy into recession.
After
years of living happily beyond their means, Americans are finally
facing financial reality. A persistent rise in energy prices will mean
bigger heating bills this winter and heftier tabs at the gas pump. Job
growth is slowing and wage gains have been anemic. House prices are
sliding, diminishing the value of the asset that's the biggest factor
in Americans' personal wealth. Even the stock market, which has been
resilient for so long in the face of eroding consumer sentiment, has
begun pulling back amid signs of deep distress in the financial sector.
The latest evidence of
the long-awaited consumer retrenchment: Chic discounter Target (Charts,
Fortune 500) last week reported a weaker-than-expected third quarter,
as sales of higher-margin apparel and home goods slowed. Starbucks
(Charts,
Fortune 500) reported for the first time that customer traffic in its
stores declined in its latest quarter compared to a year earlier.
Wal-Mart (Charts, Fortune 500) shares hit a six-year low in September
after the retail giant posted another wan sales increase.
With
consumer spending accounting for about three-quarters of U.S. economic
activity, some economists say it is inevitable that the economy will
stop growing at some point in the coming year, for the first time since
the mild recession of 2001. "Right now, the question is how bad it's
going to get," said David Rosenberg, chief North American economist at
Merrill Lynch. "The question is one of magnitude.".."
More:
Stephen
King: When banking is in crisis, no one wants to be parted from their
cash
Banks
Gone Wild
"A
Generalized Meltdown of Financial Institutions"
Weak
dollar a 'problem' for world economy - EU president
1000%
hedge fund wins subprime bet
Decay,
Economic Downturn and Revolution
All
the Bad News That's Fit to Print
Dollar
struggles near 2-1/2-year low vs yen
Stocks close down on
credit woes
The
Bottom Line: The economy is making some funny noises.
- Mysterious Tremors' Strength Ebbs With Tides
New York (National
Geography) - "The intensities of strange, long-lasting tremors in North
America's
Pacific Northwest ramp up and quiet down with the rise and fall of the
ocean's tides, according to a new study.
These so-called nonvolcanic tremors are very faint seismic
signals that were not discovered until 2002. Their exact cause remains
a mystery.
Scientists are almost certain that the
tremors are not earthquakes. Unlike quakes, the tremors start very deep
in Earth's crust and can last for weeks at a time.
Although the new study
does not reveal how the tremors are triggered,
it does suggest that the tides—forces controlled by the gravitational
tugs of the sun and the moon—play a key role in how intensely they
vibrate.
"When the water level is
up from tides, we see that the tremor is about
30 percent stronger than average," said study co-author Justin
Rubinstein, a seismologist at the University of Washington in Seattle.
"And when the tides are
out, it's about 30 percent weaker than average."
Rubinstein and colleagues present their
data this week in the online version of the journal Science..."
The
Bottom Line: Interesting...
Monday, November 26th, 2007
- Gold
hits 2-week high, platinum at record
SINGAPORE
(Reuters) - "Gold jumped to a two-week high on Monday on
speculative buying driven by the prospect of further U.S. interest
rates cuts, while platinum hit record highs on supply concerns in South
Africa -- the world's main producer.
Spot gold rose as high as
$828.70 an ounce, the highest since
November 12, before dipping to $825.60/826.30 an ounce, still higher
than $821.20/821.90 late in New York on Friday and within sight of a
28-year high of $845.40 hit earlier this month.
Gold has rebounded more
than 7 percent since falling to its lowest
level in nearly a month at $772.60 on November 20, when weak stock
markets encouraged investors to book profits from bullion's multi-year
highs.
"One has to suspect we're
going to look to test the highs again at
$845 in the days ahead," said Darren Heathcote of Investec Australia in
Sydney.
"The only caveat being
should the stock markets turn down sharply
again, I imagine gold will be sold again to cover margin calls."
Asian stocks bounced
after four straight weeks of losses, with
investors buyingbeaten-down banks as well as some of the region's top
exporters,encouraged by a robust start to the U.S. holiday shopping
period..."
More:
Freddie
and Fannie's Achilles' heel
Holiday
sales fail to get shoppers to splurge
The
Domino Effect
Dallas-Fort
Worth food pantries facing shortage
Trading
in derivatives slows to a trickle
The
Bottom Line: The U.S. Economy is out of chips, and is
holding a pair of aces and a pair of eights.
- Oil climbs to near $99, lifted by weather
SINGAPORE (Reuters) - "Oil rose to a
near record high on Monday, as
colder U.S. weather and sustained weakness in the dollar drove prices
once again toward the $100 a barrel mark.
U.S. light, sweet crude
for January delivery rose 67 cents to $98.85
by 0120 GMT, building on last week's late gains and nearing the
all-time high of $99.29 from last Wednesday.
London Brent crude rose
62 cents to $96.38.
"It could be through $100
at any moment, it looks like it has the
horsepower to get there," said Peter MacGuire, managing director of
Commodity Warrants Australia in Sydney.
"The questions are: where
does the U.S. dollar go, and are we going
to see more demand out of the U.S. as it starts to get cooler."
The dollar's decline to a
series of record lows versus the euro --
the latest on Friday -- has spurred buying in oil. The greenback
hovered near that low on Monday as investors kept faith in further
Federal Reserve rate cuts.
The onset of colder
weather in the U.S. Northeast, a major consumer
of heating oil for household use, has also aided the upswing in prices
as traders bet higher demand will strain inventories that remain below
seasonal norms..."
The
Bottom Line: I'm already feeling the pinch, are you?
Sunday, November 25th, 2007
- Gold
momentum builds in choppy trade
NEW YORK/LONDON (Reuters) - "Gold
rose sharply on Friday in volatile
trading, with prices spiking above $825 an ounce as bulls focused on
poor dollar sentiment for a fresh assault on recent 28-year highs.
Platinum prices also
perked up, with a planned national safety
strike in key producer South Africa and further shaft closures due to
accidents boosting prices near to record highs hit earlier this month.
Activity remained thin,
amplifying volatility, after the U.S. market
closure for Thanksgiving Day on Thursday and a national holiday in
Japan on Friday.
Spot gold rose about 3
percent to an intraday high of $825.70, which
marked the loftiest level since Nov 12. It was last quoted in New York
at $821.20/821.90 per troy ounce by 1:26 p.m. EST from $802.70/803.50
quoted late in London on Thursday.
"I don't think we are
getting anywhere close to the peak in this
gold market," said Graham Birch head of BlackRock's London-based
Natural Resources Equity team in a briefing on Friday.
The market hit a 28-year
high in early November at $845.50, just shy of a record $850 hit in
January 1980.
The euro set fresh record
highs versus the dollar, moving closer to
the landmark $1.50 level, on raised bets for the U.S. Federal Reserve
to cut interest rates next month.
Even
though the single currency later retreated from the peaks, a
poor backdrop for the dollar was seen bolstering investor confidence in
bullion markets..."
More:
Greenspan
Says U.S. House Prices Keep Falling After 'Shocker'
Subprime:
The Ultimate Financial Accident
Years,
Not Months
The
Bottom Line: Gone are the years of fat; now begins the
lean.
- WHO fails to reach deal on sharing bird flu
virus
GENEVA (Reuters) - "Health officials
have failed to reach agreement
on a new system to ensure developing countries benefit more from
sharing bird flu virus samples used to develop vaccines, the World
Health Organization said on Friday.
Developing states like
Indonesia -- which with 91 of the 206 human
bird flu deaths since 2003 is the hardest hit country -- want
guarantees from richer nations and drugmakers that they will have
access to cheap vaccines if they share samples.
Sharing samples is deemed
vital to see if viruses have mutated, become drug resistant or grown
more transmissible.
The WHO agreed last May
to revamp its 50-year-old system for sharing
flu virus samples with researchers and drug firms. It had wanted its
191 member states to adopt an agreement by May but divisions remain.
"Nobody can fault you for
not trying... It is so close yet so far
away," WHO director-general Margaret Chan told the final session of the
four-day talks.
The next step was not yet
clear, but it was likely officials would
meet in a smaller working group ahead of the WHO's annual assembly in
May, WHO spokesman Gregory Hartl said. But a fuller session would be
needed afterwards to clinch a deal.
Experts fear the
constantly mutating H5N1 virus could change into a
form easily transmissible among humans and sweep the world in months,
killing millions of people.
Indonesia wants countries who share samples to have full control of
their use and access to vaccines..."
The
Bottom Line: That's quite disheartening.
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