News & Analysis
DB Briefs: The Depression Continues / Retribution For S&P Downgrade / Worst Home Sales In 50 Years / The Ron Paul News Blackout Continues
'Very Muted Growth' Coming for Next 10 Years: Faber
"Both the U.S. and Europe are facing a decade of slow growth brought on primarily by the blunders of central banks, noted doomsayer Marc Faber said. Investors should protect themselves by buying plenty of physical gold and putting it in a secure location, preferably outside the U.S., the author of the Gloom, Boom and Doom newsletter told CNBC. "'If I look at the politicians both in Europe and the U.S., I don't think that prospect (for growth) is very good,' he said. 'If I also look at the entitlement system and the government expenditures and the fiscal deficits and the debt overhang, I think for the next 10 years we'll have very muted growth in the Western world and standards of living for the average household will continue to decline." – CNBC
Dominant Social Theme: Doom and gloomer Marc Faber is wrong about the economy by suggesting 10 years of depression. He is also fear mongering by even suggesting Americans should store gold outside the United States. We need regulations to end extreme rhetoric designed to spook investors out of US investments as well as "hate crime" language blaming our economic problems on the Federal Reserve.
Free-Market Analysis: We believe Marc Faber is 100% correct in his economic projections. Maybe Wall Street and the financial news establishment should carry more editorials and forecasts by alternative advisors following the Austrian School of Economics instead of the occasional missive like today.
Head of S&P Rating Agency Steps Down
The president of Standard & Poor's is stepping down, an announcement coming only weeks after the rating agency's unprecedented move to strip the United States of its AAA credit rating. The McGraw-Hill Cos., the parent of S&P, said late Monday that Deven Sharma will be replaced by Douglas Peterson, now the chief operating officer of Citibank N.A., Citigroup Inc.'s chief banking arm. Sharma, 55, "was ready for new challenges" after helping S&P separate its data, pricing and analytics business from its ratings business, McGraw-Hill said in a statement. The company unveiled that restructuring at S&P late last year. – AP
Dominant Social Theme: The S&P downgrade of US debt was irrational and the people who erred must go. Citibank has an independent voice that can lead S&P rationally.
Free-Market Analysis: Revenge by the monetary elites for justified and responsible actions which could threaten the dollar-debt Ponzi scheme or the profits of the central banking cartel are usually swift and deadly. This quick elite reaction will surely postpone future downgrades by agencies that can be quickly threatened inside the Anglosphere. A Chinese rating agency downgraded US debt a few weeks earlier without retribution.
A similar response also happens to nations and leaders who decide to price their oil in currencies other than the dollar. Iran, Iraq and Libya come to mind and it appears as though Hugo Chavez has similar plans, too.
Between his oil plans and the recent request for the Anglosphere banks to return his nation's gold, he could find himself facing AYM-inspired protests that would naturally open the UN-led sanction door, which would quickly usher in a NATO/US led military invasion. Sound unlikely? Just look at Libya for the playbook. Anyway, we wonder if there are enough tungsten bars covered in gold to cover what must be shipped and we wouldn't want to be the firm asked to assay the supposed gold bars either.
New Home Sales Fall, 2011 Could Be the Worst Year Yet
...Housing remains the weakest part of the economy. Last year was the worst for new-home sales on records that go back nearly 50 years. ... While new homes represent less than one-fifth of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs and $90,000 in taxes, according to the National Association of Home Builders. ... Analysts said the report was further proof that the housing market is stuck in the doldrums. "How much longer can we flat-line on housing?' said M. Cary Leahey, senior economist at Decision Economics. – AP
Dominant Social Theme: Trust us and don't worry about the housing market as the rebound is just around the corner.
Free-Market Analysis: The collapse in the real estate market is a result of earlier easy money policies by the Federal Reserve. We believe the biggest housing bubble in US history will likely be followed by the worst housing bust in US history.
Housing prices have fallen more than during the Great Depression and after the depression prices did not recover to pre-depression levels until after a world war and 19 years had elapsed. America, Spain, England and other nations caught up in the housing bubble have a long way to go.
There are other nations and regions outside the US where real estate might be a good investment for geo-political diversification and as a currency play against the dollar.
Obama in Close Race Against Romney, Perry, Bachmann, Paul
President Barack Obama is closely matched against each of four possible Republican opponents when registered voters are asked whom they would support if the 2012 presidential election were held today. Mitt Romney leads Obama by two percentage points, 48% to 46%, Rick Perry and Obama are tied at 47%. – Gallup
Dominant Social Theme: Yes, this Gallop poll shows the race is close and Romney, Rick Perry and Michele Bachmann have a real chance if nominated by the GOP to defeat President Barack Obama in 2012. This is why voters should not waste their votes on extreme candidates that have no chance to win the 2012 election.
Free-Market Analysis: Who Is Ron Paul and why is he seldom mentioned by the establishment press and when he is, only as the candidate who can't win a general election? Several real polls, not e-mail and Internet polls, which can be overrun with Ron Paul supporters, have shown he could run very well against Obama in the 2012 but this is usually ignored or blacked out of mainstream reports or commentary.
Ron Paul does not receive fair and equitable coverage like the other candidates because he is the only person in the race that threatens the Anglosphere and their neocon control over foreign policy as well as their disastrous monetary policy.
He and his campaign must be stopped at any cost because they will not sell out to the interests that control America. Some of the other candidates might sound like Ron Paul and have a similar limited government philosophy, but our readers know they are not like Ron Pall at all. They've all already sold out or else they wouldn't be given the regular amount of news coverage.
Posted by amanfromMars on 08/26/11 04:43 AM
"The Libyan situation becomes very interesting:
Some experts on the Middle East believe that the fall of the Gaddafi regime will lead to chaos and the civil war will not stop in Libya, but would only mean a new phase in this war.
An interesting situation came out with "jubilant people," after the alleged "taking" of Tripoli. It turned out that it was a fake." ... .. Posted by bob on 08/25/11 02:35 AM
I wonder what the BBC and floundering political party apparatchiks supporting wee Willie Hague's pathetic narrative spinning the introduction of disastrous rebel interventions and crimes against humanity into Libya and North Africa for chaos and seizure of foreign assets and release of stolen nee frozen funds, have to say about the truth of alternative news channels?
Who is pimping and pumping fake news to generate a crooked world view? ... ... http://youtu.be/XWnnhNdcVbg ... .. for does the public not have a right to know the truth, the whole truth, and nothing but the truth, or should they be fed a false feed and a generically modified seed that creates a subjective exclusive partisan reward for services rendered to Perverted Status Quo Legions ... . the Real Bugs and Parasites in SCADA Systems of Operation that Battle in Vain for Life in LOVE and Magic Command and Control Circles and Post Modern Round Tables?
Let us ask HMG for her views and listen to the Liberal Democrat Conservative news and post these questions to perceived responsible departments and even some secret services of ... ... . well, nowadays it is Media Government which leads, is it not?
Posted by clark on 08/25/11 04:45 PM
josejoe wrote, "but aren't there investments in the future like the space program, that no one can fund?"
There are private companies sending People into space, such a venture can be done without forcing People to pay for it.
If no one wants to voluntarily fund it, perhaps it doesn't need to be done?
Posted by josejoe on 08/25/11 10:40 AM
thanks dickfitz-that helps, but aren't there investments in the future like the space program, that no one can fund? oops-guess maybe that starts us down the trail to where we're at? -just still confused!
Posted by ghendric on 08/25/11 06:42 AM
Welp, one good thing about home prices still going down, maybe I'll be able to afford that big 3000 sq ft home I need for real cheap one day...
Posted by johnblenkins on 08/25/11 02:53 AM
-Fascinating stuff like this I find only @ DB.
-I'm pretty sure AYM inspired regime change, if true, will only succeed in making things worse, not better, for the USA & Western Civilization as regimes are replaced with militant Islam.
Maybe that's exactly what the want!
Posted by bob on 08/25/11 02:35 AM
The Libyan situation becomes very interesting:
Some experts on the Middle East believe that the fall of the Gaddafi regime will lead to chaos and the civil war will not stop in Libya, but would only mean a new phase in this war.
An interesting situation came out with "jubilant people," after the alleged "taking" of Tripoli. It turned out that it was a fake. Qatari authorities have built a copy of Tripoli prior to these events. It was believed to be intended for training purposes of fighters who will storm the Tripoli. Apparently, the goal was different: to manufacture scenes of "taking" and "national celebration". Also completely false were "sensational" reports about Gaddafi's flight of to another country, such as in Venezuela.
By the morning of 23rd, there is evidence that the assault has finally failed. Then, the West started the naval landing operation. It played the crucial role in the storming of the city. However, since the so-called rebels because of their poor training would not be able to participate independently in such complex form of fighting, apparently, Americans were doing all the fighting. There was nobody to take Tripoli from the sea besides the U.S. Marines. Two amphibious ships approached the Libya coast back in June. About 200 fighters the U.S. Marine Corps on Sunday were part of units landed on the coast. They were the main strike force of the failed assault. This we can explain such high losses in the battle for Tripoli - usually, the rebels after losing a dozen people have fled, but casualties were in hundreds of people.
Meanwhile, the overthrow of the Gaddafi has been welcomed by many Islamist groups. In particular,
- In the evening of August 22, the leaders of the Libyan opposition received congratulations from the leadership of the Palestinian terrorist organization Hamas.
- On August 23, the Iranian president Mahmoud Ahmadinejad congratulated the Libyan people with "the great victory".
Posted by clark on 08/24/11 10:20 PM
keauco wrote, "Once we have Him, then we have the potential answers inside of us."
Yup, and that's why Ron Paul is the best earthly option. Ron Paul furthers the ideals expressed by Him, imho. None of the other candidates do. Which certainly goes a long ways towards explaining why so many reject or ignore Ron Paul and his message of liberty, freedom and peace.
Blessed are the peacemakers, not the warmongers.
Posted by keauco on 08/24/11 09:50 PM
interesting comments David_Robertson, rossbcan and others. My take is this:
Even if Ron Paul got past mainstream media bias, vote rigging & then misplaced blame when things collapse, he won't be able to solve everyone's problems anyway.
Americans need to learn that neither Ron Paul nor any other politician or preacher is their saviour, but only the one who said "I am the way, the truth and the life". Once we have Him, then we have the potential answers inside of us.
Hope placed elsewhere will fail.
Posted by Rrust on 08/24/11 09:15 PM
memehunter and Hugh, re: 9/11 official story and Ron Paul's "acceptance" of it.
I seem to recall just one video clip of Ron Paul mentioning the official version, and it seemed very clear to me that he well knew the truth, but was hanging the powers-that-be with their own story. At the time, the technique seemed both sensible and rather clever. I guess the gist was, if *we* meddle in affairs of foreign nations, then it's hardly surprising that we suffer as a result. --Use the *official* story as ammunition in the case for minding our own business with regard to world affairs.
Of course I wonder if I have missed something, and whether others heard this the same way. I am sure Ron Paul assumes anyone and everyone who has paid any attention to the 9/11 matter well-knows the truth… no need to dwell on it when other matters are taking priority.
Posted by DickFitz on 08/24/11 06:48 PM
The Austrian school does provide for borrowing for the future- aka capital investment- but requires that such borrowing be done by entities that will be resposibile for the failure and rewarded for the success of such borrowing. Public schools, roads and bridges, power generation and transfer, communication- all of these can be provided for in a private setting as long as government stays out of the way. We pay exorbitant taxes- say, on fuel to provide for transport needs- that are squandered on inefficient and substandard projects, with politically connected firms skimming large amounts off the top. If the highway system, as an example, was sold off to private consortiums who were responsible for maintainence, improvement, and safety then users paid a fee commensurate with their use of those transport systems then the incentive to improve them and make them safe would lead to better systems. Instead we have massive waste and graft that results in shoddy construction that costs far more than it should. A private, legally liable entity would have incentive- profit- to make them safe (so they don't get sued for negligence), inexpensive (so that the maximum amount can be earned from their use) and durable (so they can be used extensively before needed repair/upgrade) and the users would benefit. If they charged too much, alternatives (trains, air travel, alternate routes) would cause a decline in profit.
Google "Xeer", the private legal system used in Somalia (before western powers decided to "civilize" them and brought chaos) for an overview of how a stateless legal system could be modeled, and read some of the work of H.H.Hoppe for a deeper understanding of how "democratic" government is designed to reduce "time preferences" resulting in short-sighted political decisions.
Hope this helps!
Posted by Hugh on 08/24/11 04:41 PM
Yes, it is(9/11 official story) the elephant in the room. But what's a genuine, sincere politician with presidential aspirations gonna do? If he tells it like it is, he's history; yesterdays' news and so is any last chance of a political solution to this nightmare. Damn if you do and damn if you don't.
But, I see your point. I would only say, don't hold it against him too much as he may just rock the boat IF elected by insisting on a new inquiry.
Posted by memehunter on 08/24/11 03:45 PM
"They've all already sold out or else they wouldn't be given the regular amount of news coverage."
As I said in the past (but I'm not sure people want to hear it), Ron Paul also "already sold out", perhaps not as much as some of the other guys, but it's only a matter of degree.
Remember what Paul had to say about 9/11 (links can be found easily). This is as "sold out" as you can get, on this topic at least.
Posted by josejoe on 08/24/11 03:13 PM
the only problem i see-and i'm a long way from being an economist of any stripe-is that with the austrian school of thought there is no provision for government investment out into the future (NO borrowing for the future)? whereas the keynesian school advocates it for real growth that private investment cant handle. help-anyone?
Posted by amanfromMars on 08/24/11 02:20 PM
Methinks gunter's concerns for the life of Ron Paul, David_Robertson, would be better placed and be much more of a real constant worry and clear and present danger for the likes of a Blankfein or an Obama or even a Blair and Wee Willy Hague ... .. for Ron Paul has done nothing so deserving as those others, surely?
Posted by notaguruandneverwas on 08/24/11 02:11 PM
"Scary though this analysis is the events going on around the world certainly support your conclusion. The question must arise: Why? why would they kill the goose that has been trained to lay so many golden eggs over the years? The answer is hidden somewhere in the dark subconscious of the pathological mind that is shared by those who rule this world by whatever name we call them. "
I think the answer has to do with technological advance. It's certainly not just about money and control. It's definitely about resources but they wouldn't allow the peasants to have as big a chunk of resources as they get if they didn't need them as a support base for massive technological progress to take place in a short period of time.
Once the level (as determined by them) of technological progress is met then they can remove most of the useless eaters. The first step will be a massive austerity for all the peasants.
Nothing has fundamentally changed since feudal times. Only rulers are WAY better at hiding themselves now and they have advanced ways to rob their citizens with economic science and fiat money magic.
It seems certain steps in tech progress needed to be achieved and it just might be it has been.
Posted by amanfromMars on 08/24/11 02:05 PM
Regarding "Anyway, we wonder if there are enough tungsten bars covered in gold to cover what must be shipped and we wouldn't want to be the firm asked to assay the supposed gold bars either.", I was thinking in a similar vein ... .
[blockquote]amanfromMars Wed, 08/24/2011 - 12:02
With Chavez asking for repatriation of Venezuelan gold, all 211 tonnes apparently, from foreign lands and dodgy depositories, are the wheels gonna fall off the gold paper IOU vehicles, as the quantity and quality sold, and shown as being in store and available on paper, is greater by an unbelievably greedy margin of leverage than exists and is never going to be available.
Another ponzi money scam bites the dust. If you aint holding it, you don't own any of it and the IOU note you may be holding as its substitution is just a worthless scrap of pretty printed paper to remind you of stupid greed for a crazy fools' metal. Or is that too unbelievable to be anywhere near true?
Click to view link [/blockquote]
Posted by David_Robertson on 08/24/11 01:08 PM
Because a dead martyr is a more powerful icon than a living politician. The calculation must be that to assassinate him would make his message more important (why did they kill him? What was he saying that was so important?).
There are many others who would step into his shoes at that point and they may not be able to control the results of that.
They prefer to assassinate him virtually and subtly by ignoring him, misrepresenting his positions and making fun of him.
Posted by David_Robertson on 08/24/11 12:58 PM
I agree actually Bill. I believe you discern the problem and you believe the solution lies in the material realm. I would not believe this solution to be possible even if I did not know what I know about the purposes of God.
Even before I came to a knowledge of the truth I could see very clearly that unless each os us knew and acted with perfect wisdom humanity was embarked upon a road of self destruction. The accepted wisdom of the day was that the most fundamental instinct in man was the survival instinct. If that were true I thought why do so many commit suicide? Why do we have so many wars constantly killing one another for so little gain indeed for gargantuan loss?
Are we so insensible and foolhardy that we cannot see what is right in front of our eyes? The most fundamental instinct that I SAW IN OPERATION was SELF DESTRUCTION not SELF SURVIVAL. Nothing has happened in the intervening years to change that view. This leads to the conclusion that we are for the most part blind, irrational and deluded. We insist on hoping for something better and the outcome is always disastrous.
Whenever I see crowds celebrating a victory of arms or votes in an election I know without a single doubt that in time every single hope they have will be disappointed. To continue to believe that humanity has the answers for their own salvation is a resounding victory of hope over experience.
The most developed ideology of this delusional behaviour is "positive thinking". Like any "method" devised by man to manipulate his environment or his own mind it attracts many hopeful followers and often makes the inventors wealthy and famous but its promises always end unfulfilled in the dust because they are based upon the LIE that there is some way, some technique, some law, some method that if followed faithfully will lead its followers to the promised land of peace and plenty for all.
This is the LIE that man first fell for in the Garden and he continues to fall for it. "Eat of the fruit of this tree and you will be as gods KNOWING good and evil." Like all effective lies it is half true. You will indeed have a knowledge of good and evil but the knowledge itself will lead you to death because it is an imperfect knowledge. This is because we are separated and alienated from the source of Life, the source of perfect wisdom and understanding, i.e. the source of Truth. This is the lesson we must learn if we are to begin our journey home.
Posted by reegje on 08/24/11 11:20 AM
That is a given. The people need to stand behind him. We also know that Americans cannot longer stand on the sidelines anymore: that has been the prelude to all this misery.
By the way Rosbe: I like it that you stop capitalizing in your feedbacks that much. All those capitals into text makes it hotchpotch of letters blurring into text: a challenge to read at least for me!
Posted by rossbcan on 08/24/11 10:42 AM
Not going to debate you on the god / savior point, apart from stating the obvious: objective secular thinking leads to the same place, without the neccessity of "and then, a miracle occurred" linking facts to a conclusion.
The divide between the peaceful secular and peaceful religious is a completely bogus, for no reason conflict. I am sure you have already read my proof of this manipulation:
Click to view link
So, lets agree to agree:
Peace is the goal. This requires decisively dealing with Evil (anti-life) forces and predators on mankind.
And, may or may not see you at the pearly gates, depending on whether god judges behavior only, or, if belief and subservience are required for entry.
As a final note, assuming god exists. It MUST be possible to discern his will, by understanding the natural law that god allegedly created and maintains. There are many roads leading to any particular destination.