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Posts Tagged ‘global currency’

Two key headlines that have cleared recently regarding the US Dollar and end times prophecy.  China and Russia have agreed to do business in their own currencies as opposed to US Dollars.  And here recently Ecuador is establishing a new “digital” currency that will be used “alongside” their current paper currency, which is? The US Dollar.

Remember, the darker it gets, the brighter and farther our little light shines!

Maranatha, Lord come quickly!

myblessedhope

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De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar
Is the petrodollar monopoly about to be shattered? When U.S. politicians started slapping economic sanctions on Russia, they probably never even imagined that there might be serious consequences for the United States. But now the Russian media is reporting that the Russian Ministry of Finance is getting ready to pull the trigger on a “de-dollarization” plan.

Petro-dollar era is officially over as Gazprom begins sales in Yuan and Rouble
Aug. 27 will officially go down as a red letter day in the history of reserve currencies and dollar hegemony in how oil and gas are purchased throughout the world. In a new announcement from the Russian business media source, Kommersant, Gazprom has conducted the first sale of oil in a currency other than the dollar, and will henceforth open their purchase window to accept both Roubles and Yuan for the exchange of oil and gas products.

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Ecuador gives details of new digital currency
The Ecuadorean government has released more details of its plans to create what it calls the world’s first digital currency issued by a central bank. Central bank officials say the electronic money, as yet unnamed, will start circulating in December. The new money will be used alongside the existing currency in Ecuador, the US dollar.

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Other “crisis” looming to inact change:

Two experts warn correction could total 60%
…A jolt to international confidence in central banks will lead to a 30 to 60 percent market decline…When this happens, he said, markets will face a “period of extreme turmoil.” This crash will be precipitated, he said, by a disillusionment with the Federal Reserve’s “confidence game,” which will then see inflation rise, and the Fed scramble to raise rates. At that point, Tice added, “the Fed starts to lose control.”

and

http://theeconomiccollapseblog.com/archives/if-economic-cycle-theorists-are-correct-2015-to-2020-will-be-pure-hell-for-the-united-states

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Click on the article title for a link to full original referenced article.

In Romans 10 Paul lays out how salvation is open to all, Jew and Gentile.  He writes:

“For Christ is the end of the law for righteousness to everyone who believes.” – Romans 10:4-5

What he is saying is now it is not about works or how closely to a “T” you follow the law.  But that it is through God’s gift of grace through faith in His Son, Jesus Christ.  It is really that simple, and yet a hard step for some of us.

“That if you confess with your mouth the Lord Jesus and believe in your heart that God has raised Him from the dead, you will be saved.” – Romans 10:9

Christ is the narrow gate (Matthew 7:13-14), through faith in Him you will be saved.  It is the only “works” that God requires for eternal salvation.

It is The Gospel of Jesus Christ.  To learn more check out the following link.

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– Have you ever seen a false Buddha or false Muhammad? – Counterfeit verifies the Truth

– Wars and Rumors of War

– Matthew 24:3-8 – All the birth pangs are beginning…

– Ezekiel 38 – Nuclear Attack

– Natural Gas in Israel

– Syria, Iraq, Jordan, Egypt – why not included in Ezekiel 38?

– Days of Noah / Days of Lot – Defense of Marriage, Same Sex Marriage – Headed to Supreme court

– One World Currency / One World Government

– Antichrist

Wow what can I say?  That is a lot of ground to cover in one weeks update, but would you believe we had all of that and then some in the headlines on a single day.  JD does a wonderful job laying out the big picture, the forest, the puzzle!

All the pieces are coming into place.  My only explanation for why people don’t see it is that they are perpetually distracted with the things of this world.  Christ called it being “asleep”.  Having awoken, I think that is a good description of what it was like.  It is not coincidence that all these things are happening on the same  day/week/month.

It is prophecy.

God’s will being fulfilled.

Maranatha, Lord come quickly!

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Click on the article title for a link to full original referenced article.

In Romans 10 Paul lays out how salvation is open to all, Jew and Gentile.  He writes:

“For Christ is the end of the law for righteousness to everyone who believes.” – Romans 10:4-5

What he is saying is now it is not about works or how closely to a “T” you follow the law.  But that it is through God’s gift of grace through faith in His Son, Jesus Christ.  It is really that simple, and yet a hard step for some of us.

“That if you confess with your mouth the Lord Jesus and believe in your heart that God has raised Him from the dead, you will be saved.” – Romans 10:9

Christ is the narrow gate (Matthew 7:13-14), through faith in Him you will be saved.  It is the only “works” that God requires for eternal salvation.

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I think the article below is very eye opening into how the “Grand Delusion” that is spoken of in the Bible will work.  My initial thought was “Who in their right mind would label 2012 as the ‘best year ever’?”  It must just be a hook to get you to read but they are serious.  Sure they will elude to some negatives but are quick to minimize them for the bright side assessment.

Sure costs are rising, Brussels sprouts cost 70% more now than in January but who wants to eat those?  Really!!!  A 70% increase in food costs and we spin that positive.  I can see it in 2013, food prices are up 400%, but it has allowed us to keep all those new years resolutions to loose weight and we have a much more sustainable society now!

A few other key highlights: (my comments in italics)

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Amazing the plan is revealed, now it is just a matter of timing, which I feel is accelerating…

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Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing

Sometimes there are things that are so shocking that you just do not want to report them unless they can be completely and totally documented.  Over the past few years, there have been many rumors about a coming global currency, but at times it has been difficult to pin down evidence that plans for such a currency are actually in the works.  Not anymore.  A paper entitled “Reserve Accumulation and International Monetary Stability” by the Strategy, Policy and Review Department of the IMF recommends that the world adopt a global currency called the “Bancor” and that a global central bank be established to administer that currency.  The report is dated April 13, 2010 and a full copy can be read here.  Unfortunately this is not hype and it is not a rumor.  This is a very serious proposal in an official document from one of the mega-powerful institutions that is actually running the world economy.  Anyone who follows the IMF knows that what the IMF wants, the IMF usually gets.  So could a global currency known as the “Bancor” be on the horizon?  That is now a legitimate question.

So where in the world did the name “Bancor” come from?  Well, it turns out that “Bancor” is the name of a hypothetical world currency unit once suggested by John Maynard Keynes.  Keynes was a world famous British economist who headed the World Banking Commission that created the IMF during the Breton Woods negotiations.

The Wikipedia entry for “Bancor” puts it this way….

The bancor was a World Currency Unit of clearing that was proposed by John Maynard Keynes, as leader of the British delegation and chairman of the World Bank commission, in the negotiations that established the Bretton Woods system, but has not been implemented.

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List of articles in the headlines today by prophecy topic…(I will continue to update it with additional articles throughout the day.)

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We must watch this round of G20.  It appears if we will be standing alone, we have turned everyone against us and it is yet to be seen if we will be strong enough to stand, I don’t think so, we have rotted through extreme over spending and over-extension.

The current EU leader has called the G20 our global governance, could it already be here?  Watch and see…

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Analysis: German tempers fray as U.S. policy gulf widens

(Reuters) – Germany‘s undiplomatic outbursts against U.S. policy, calling it “clueless” before a G20 summit, show growing estrangement on economics as America’s focus shifts away from transatlantic ties to domestic challenges and Asia.

“The Atlantic is getting wider,” said Anton Boerner, head of Germany’s Foreign Trade Association, who spoke of a “creeping alienation” between America and Europe, which has been exacerbated by the global financial crisis.

Germany and the United States often criticize each other’s approaches to aiding economic recovery, with U.S. calls for more expansive policy falling on deaf ears in fiscally disciplined Germany. But Berlin has taken the rhetoric to a new level.

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This is the root of where we went wrong back in the 1930’s.  We strayed significantly from the constitution and we are paying dearly for it now…  They are destroying our currency, and our countries sovereignty along with it…

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Is the Fed’s Debt-Buying Unconstitutional?

Is the Federal Reserve violating the U.S. Constitution’s separation of powers in its new purchases of $600 billion worth of U.S. Treasuries? Is the Fed engaging in an unconstitutional monetization of the   U.S. Congress’ out of control spending spree that is really a bridge loan to fiscal insanity?

At minimum, should the Fed be avoiding these purchases until the fiscally debauched U.S. Congress, packed to the ceiling with fiscal dipsomaniacs, follows Great Britain’s lead in its fiscal abstinence that may “out Thatcher” even Margaret Thatcher?

Isn’t the problem fiscal incontinence and regulatory misfeasance, and business uncertainty about all of that, which is creating joblessness? Not a lack of liquidity and not deflation, which is not a clear and present danger, as instead inflation is still with us?

And isn’t the Fed dangerously habituating the stock, bond and commodities markets to a “new normal” of constant quantitative easing?

Open Revolt

Germany, China, Russia and Brazil are attacking the Fed’s move. President Barack Obama is now defending the Fed in his (more…)

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This is the crazy territory we ar now entering, where commodities are beginning to be priced higher than what they end up making, at least for a short time…can you see how hyperinflation is going to strike?

(I will also call attention to the comments posted to the original blog post.  The US has made the same mistake with the National Park Service coins that are going on sale in December this year, by law they have to sell them and keep selling them until demand stops…)

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Germany Unwittingly Adopts A Silver Standard Due to Soaring Price

By Toni Straka of The Prudent Investor

Germany Unwittingly Adopts A Silver Standard Due to Soaring Price

Silver’s sky-shot to a new 30-year high of $27.73 per ounce has led to a new phenomenon in Germany. For the first time in history it is theoretically possible to buy two last series of silver coins with a denomination of €10 and a silver content of 0.535 ounces for less than the silver equivalent. According to a report in German Daily “Welt” the soaring silver price has forced the German government to bring forward the starting time of sales of the 2 commemorative coins into October to save face. The coins now have a value of €10.66 but have to be sold at the denominated Euro value.

As this story is widely circulating in Germany it can be expected that these coins will be sold out by tomorrow.
Germany’s time on a theoretical silver standard – the country was on a bi-metallic standard before the Weimar Republic in the 1920s – won’t last long, though.

In order to counter soaring silver prices and keep the denominated value below the silver value the country has announced it will reduce the silver content to 10 grams or 0.3215 ounces in its commemorative silver coin line from January 2011.

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Comment posted to above article:

by Sudden Debt
on Tue, 11/09/2010 – 14:12
#712749

The US is in even deeper shit.

They have to distribute the national park set in the 5 OZ blown version for 120 dollars a piece.

As this also needs to be done according to US law, they’ll be sold out in 1 day when they sell them.

Launch will be in december and the maximum order quantity is 1000 pc for national parks and 50 sets per citizen.

AND!!!!

THEY HAVE TO MAKE THEM UNTILL DEMAND STOPS!!!

That’s why they wait untill the end of the year to do so because at first it was planned after the summer.

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Looks like this G20 meeting is going to be very “interesting” and maybe a turning point…

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Russia to `Insist’ U.S. Coordinate With G-20 Members on Monetary Measures

Russian President Dmitry Medvedev will “insist” on global coordination of any so-called quantitative easing measures by government when he meets with counterparts from the Group of 20 nations this week.

Such actions will need to be planned in advance in order to avoid creating risks for other markets and economies, senior Kremlin economic adviser Arkady Dvorkovich told reporters in Moscow today.

Russia will also argue against instituting targets on current account surplusses or deficits, Dvorkovich said.

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We are entering very dangerous waters.  The backlash will be severe, we are already seeing the effects…

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QE2 risks currency wars and the end of dollar hegemony

As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.

By Ambrose Evans-Pritchard, International Business Editor
Published: 9:56PM GMT 01 Nov 2010

QE2 risks currency wars and the end of dollar hegemony 

QE2 risks currency wars and the end of dollar hegemony Photo: AFP

The Fed’s “QE2” risks accelerating the demise of the dollar-based currency system, perhaps leading to an unstable tripod with the euro and yuan, or a hybrid gold standard, or a multi-metal “bancor” along lines proposed by John Maynard Keynes in the 1940s.

China’s commerce ministry fired an irate broadside against Washington on Monday. “The continued and drastic US dollar depreciation recently has led countries including Japan, South Korea, and Thailand to intervene in the currency market, intensifying a ‘currency war’. In the mid-term, the US dollar will continue to weaken and gaming between major currencies will escalate,” it said.

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Here we go, its official.  Watch for price increases over the next 3-6 months…

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Fed to Spend $600 Billion More To Help Boost US Economy

The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.

Sheet of US one hundred dollar bills
Don Farrall | Digital Vision | Getty Images

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

The U.S. central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.

In its post-meeting statement, the Fed described the economy as “slow”, and said employers remained reluctant to add to payrolls. It said measures of inflation were “somewhat low.”

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We are at a dangerous point this week.  Under the cover of all the election hype, the federal reserve is making probably the biggest decision in this century…remain watchful, stock up on food & water, make sure you fill up your cars with gas…pray, trust in God.  It is going to be quite a ride…

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Watch for what the Fed does today, headlines from Drudge on fed’s decision…

Treasury estimates $362B in borrowing for quarter...

Bernanke Faces More Congressional Scrutiny After Republican Election Gains...

PUMP: Fed Likely to Announce $500 Billion of Purchases...

'Biggest decision in decades'...

Fed easing may means 20% drop of dollar value...

'The end of dollar hegemony'...

Sen. Gregg: 'We're Greece' in a Few Years...

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Concerns from China on our openness to devaluing our dollar through the printing press (i.e. quantitative easing.)

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Dollar printing feeding China inflation: minister

Rampant issuance of dollars by the United States is saddling China with “imported inflation”, Chinese commerce minister Chen Deming was quoted as saying by state media on Wednesday.

“Given the current situation, companies have thought ahead and prepared for exchange rate fluctuations as well as an increase in labour costs,” Chen said, according to the state-run China Business News.

“But because the issuance of dollars is out of control, and international commodities prices are continuing to rise, China is confronted with imported inflation, which has created major uncertainties for businesses,” he said.

The comments came ahead of a meeting of the US Federal Reserve next week at which the central bank is expected to announce additional stimulus measures.

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More discussion on the future of the dollar and global currency….

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Dollar at Risk of Becoming ‘Toxic Waste’: Charts

The dollar’s slump could get far worse if the dollar index takes out last year’s low, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

“If the (dollar index) takes out the low that was made roughly a year ago I really think that will not only encourage more sales, it will cause a little bit of minor panic,” Griffiths said. “A year ago it was deemed too cheap, if it goes any lower than that it’s actually become toxic waste.”

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Europe is taking China seriously and scrambling in the opposite direction of us…

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Commission breaks taboo on ‘own resources’

ANDREW WILLIS

Today @ 09:26 CET

EUOBSERVER / BRUSSELS – The European Commission has proposed a list of potential methods to enable the EU to raise its ‘own resources’ in future, citing the need to end current wrangling over member state contributions to the Brussels budget.

A separate EU-wide value added tax (VAT) is among the ideas contained in the commission’s “budget review” published on Tuesday (19 October), a document which stems from a Franco-British spat in December 2005 over EU payments.

Other self-funding mechanisms could include a financial sector tax, a share of profits from auctioned greenhouse gas emission allowances, an EU charge related to air transport, an EU energy tax or an EU corporate income tax.

Presenting the review in the European Parliament in Strasbourg, EU budget commissioner Janusz Lewandowski said the EU budget should rely less on member state contributions, as was previously the case.

National contributions, based on gross national income (GNI), represented 10 percent of the EU budget in 1988, but these days amounts to roughly 70 percent as takings from EU customs duties and farm levies have declined.

“The question of EU funding priorities is always overshadowed by debate on ‘net contributors’ or ‘juste retour’,” Mr Lewandowski told the MEPs. “That is why we need to find a way out of this.”

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More on China’s rare mineral shipment stoppage…

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US inquiry into China rare earth shipments

Mini magnets made from chemically processed rare earths are shown in Beijing The 17 different rare earths are found in everything from magnets to hybrid cars and computer monitors

US trade officials say they are looking into a New York Times report that China is blocking shipments of rare earths to the US and Europe.

China mines 97% of the specialist metals crucial to green technology.

The report, citing anonymous industry sources, said Chinese customs officials had broadened export restrictions.

Meanwhile China’s commerce ministry has denied a report by the official China Daily that it will cut quotas by 30% next year to stop overmining.

“The report is completely false,” the ministry said in a statement.

“China will continue to supply rare earths to the world, and at the same time, to protect usable resources and sustainable development, China will also continue to impose restrictive measures on exploration, production and import and export of rare earths.”

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Look out, we have a tiger by the tail, did you know how dependent we are on China for these key minerals?

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China to Halt Some Exports to U.S.

HONG KONG — China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of those materials to the United States and Europe, three industry officials said on Tuesday.

Reuters

A worker at the site of a rare earth minerals mine.

The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.

“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.

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More on Fed’s plans to fire up the printing press…

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Officials hint Fed on the verge of more easing

WASHINGTON (Reuters) – A string of Federal Reserve officials on Tuesday indicated the central bank will soon offer further monetary stimulus to the economy, with one saying $100 billion a month in bond buys may be appropriate.

While internal differences on the unconventional policy are still evident, the consensus view at the Fed appears to be that the economy is weak enough to warrant further support, most likely through increased purchases of Treasury debt.

The U.S. economy is expected to have grown just 1.9 percent in the third quarter, a level considered too low to bring down unemployment. The debt purchases would help lower long-term interest rates in the hope of boosting demand.

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Buckle up…

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Fed’s Bernanke signals new round of quantitative easing

US Federal Reserve Chairman Ben Bernanke has opened the way to a new round of quantitative easing.

“There would appear, all else being equal, to be a case for further action,” he said, in a speech to the Boston regional federal reserve.

The US central bank is expected to back a move to buy up US government bonds in order to lower borrowing costs at its next meeting on 3 November.

Mr Bernanke said unemployment and low inflation lay behind his view.

However, some colleagues at the Fed have expressed much more hawkish views, and Mr Bernanke was careful not to pre-empt the decision of the rate-setting committee due next month.

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The tightrope walk continues, a lot of attention on China, as they may hold our future in their hands…

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US delays China ‘currency manipulator’ report

yuan notes Countries including the US have accused China of keeping the yuan artificially low

The US government has delayed a report – which was expected on Friday – that could officially brand China a “currency manipulator”.

The US Treasury releases two reports a year on the currency practices of its major trading partners.

It has so far held back from naming China. The report is not now expected until after an upcoming G20 summit.

China said the US should not use the weak yuan as a “scapegoat” for its own economic problems.

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How can this end well for the US?  Our ship is running a ground…

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National Debt Up $3 Trillion on Obama’s Watch

(Credit: CBS/iStockPhoto)

New numbers posted today on the Treasury Department website show the National Debt has increased by more than $3 trillion since President Obama took office.

The National Debt stood at $10.626 trillion the day Mr. Obama was inaugurated. The Bureau of Public Debt reported today that the National Debt had hit an all time high of $13.665 trillion.

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Currency war continues…

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Currency tensions persist as markets await Fed

(Reuters) – Recriminations over currencies reverberated worldwide on Friday ahead of a speech by Federal Reserve chief Ben Bernanke, whose loose policies are blamed by China and others for destabilizing capital flows.

Beijing kept up the heat on the United States, saying Washington should not make China a scapegoat for its own problems by constantly pressing for a swifter rise in the yuan.

Speaking hours before the U.S. Treasury Department is due to deliver its semi-annual assessment of whether China manipulates its currency, Commerce Ministry spokesman Yao Jian said it was not fair to criticize Beijing’s exchange rate policy simply by pointing to China’s trade surplus.

“Other countries have no right to comment on what is a reasonable level for a country’s trade surplus,” Yao told a monthly news conference.

Sniping over what exchange rates are appropriate to put the world economy back on course is intensifying ahead of a pair meetings of the Group of 20 leading economies in South Korea.

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What are we doing?  Even with over a trillion and a half of printed dollars from the Fed and we are still running a deficit of $1.29 trillion?  We are digging ourselves a very deep hole…

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Government to report on $1 trillion-plus deficit

WASHINGTON – The Obama administration is set to report Friday that the federal budget deficit exceeded $1 trillion for the second straight year, providing critics of government spending with fresh ammunition ahead of the midterm congressional elections.

The Congressional Budget Office is projecting that the deficit for the 2010 budget year that ended Sept. 30 will total $1.29 trillion. That’s down by $125 billion from the $1.4 trillion in 2009 – the highest deficit on record.

Soaring deficits have become a problem for Democrats in an election year focused on the weak economy.

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Our relationship with our #1 debt holder is becoming very tense, this is one of the key relationships that could trigger a rapid decline in our economic state.  If they decide to dump our debt, it would crash our dollar, and start a long chain of dominos…something to keep your eye on.  Could this be the reason we do not see America in end times prophecy?

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China warns US against making yuan dispute a ‘scapegoat’ for a flagging economy

China has again warned the US not to use the dispute over the value of the Chinese currency, the yuan, as a “scapegoat” for its high unemployment and flagging growth prospects.

China warns US against making yuan dispute a 'scapegoat' for a flagging economy. 

The artificially weak Chinese currency has become a political issue in the US where it is blamed for giving Chinese exporters an unfair advantage at the cost of US jobs. Photo: Getty

The remarks from China’s ministry of commerce came hours before the US was due to release a report on whether it considers China a “currency manipulator” as fears grow that tensions over the currency could lead to a protectionist trade war.

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I posted an article yesterday on this as well, it is amazing how big an impact this will have on our economy, simply due to the fact we have so many dependent on it to live.  The duplicity of the deception is that they say there is no inflation (Really?  Have they gone grocery shopping recently?  Oh that’s right they exclude groceries from their numbers), which there is, but the Fed is working to increase inflation over the next year because they say it is too low…

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No Cost of Living Hike to Social Security Next Year

WASHINGTON — More than 58 million retirees and disabled Americans will get no increase in Social Security benefits next year, the second year in a row without a raise.

The Social Security Administration said Friday inflation has been too low since the last increase in 2009 to warrant an increase for 2011. The announcement marks only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s.

To make up for the lack of a COLA, the House will vote in November — after congressional elections — on a bill to provide $250 payments to Social Security recipients, House Speaker Nancy Pelosi said. But even if Pelosi can get the House to pass the proposal, it faces opposition in the Senate.

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More signs on the direction of our economy…

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US Consumer Sentiment Dips to Weakest Level Since July

U.S. consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed.

Also, consumers’ assessments of government economic policies fell to the lowest level since U.S. President Barack Obama took office, it showed.

The Thomson Reuters/University of Michigan’s preliminary October reading on the overall index on consumer sentiment came in at 67.9, down from 68.2 in September and below the 69.0 median forecast among economists polled by Reuters.

The survey’s barometer of current economic conditions was at the lowest level since November 2009. The index was at 73 in early October, compared with 79.6 in September and 79.8 forecast by analysts.

Consumer spending typically accounts for about two-thirds of U.S. economic activity and is considered critical to the recovery. It’s especially watched in the months ahead of the U.S. holidays, a key period for retailers.

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How did we get to the point that China’s economist are on the side of the truth and our economists the side of deception?…

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U.S. is currency war’s “tomb maker”: China economist

An employee counts U.S. dollar banknotes at a branch of the Industrial and Commercial Bank of China in Huaibei, Anhui province in this May 25, 2010 file photo. REUTERS/Stringer 

An employee counts U.S. dollar banknotes at a branch of the Industrial and Commercial Bank of China in Huaibei, Anhui province in this May 25, 2010 file photo.

Credit: Reuters/Stringer

BEIJING | Thu Oct 14, 2010 6:39am EDT

BEIJING (Reuters) – The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday.

In a front-page commentary in the overseas edition of the People’s Daily, Li Xiangyang described the United States as the conflict’s “first maker of tomb figures,” a Chinese idiom that means someone who creates a bad precedent.

Li, head of the Asia department at the Chinese Academy of Social Sciences, a top government think tank, said continued intervention in currency markets by developed economies would deal a blow to global economic recovery.

Chinese leaders have warned before that loose monetary policies in the United States pose a serious challenge for emerging markets, but rarely in such strident language, a window onto the rising anger in Beijing.

“The dollar’s depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions,” Li said in the paper, which serves as the chief mouthpiece of China’s ruling Communist Party.

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Interesting graphs showing our unemployment state we find ourselves…

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Gallup Finds U.S. Unemployment at 10.1% in September

PRINCETON, NJ — Unemployment, as measured by Gallup without seasonal adjustment, increased to 10.1% in September — up sharply from 9.3% in August and 8.9% in July. Much of this increase came during the second half of the month — the unemployment rate was 9.4% in mid-September — and therefore is unlikely to be picked up in the government’s unemployment report on Friday.

Gallup's U.S. Unemployment Rate, 30-Day Averages, January-September 2010

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The headline says it all, how can that not be seen as an act of desperation as we begin the fall…

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Fed Undaunted by Uncertain Prospects for Money Printing

The U.S. Federal Reserve runs the risk of diminishing returns from its next round of money printing to amplify the subdued economic recovery, but that won’t stop it from trying.

Sheet of US one hundred dollar bills
Don Farrall | Digital Vision | Getty Images

Minutes due Tuesday from the Fed’s most recent policy-setting meeting may reflect some divisions among officials over whether to launch another round of asset purchases, known as quantitative easing.

Investors, however, assume the Fed will pull the trigger, likely at its next policy-setting meeting in November.

A Reuters poll of 16 primary dealers—investment firms that deal directly with the Fed—showed all expected the central bank to return to buying bonds.

All but one predicted the announcement would come at the Nov. 2-3 meeting.

The Fed cannot sit idly by with unemployment stuck near 10 percent and inflation below the central bank’s perceived target, economists say. Statements from some of the Fed’s top officials in recent days have made it increasingly clear that action is likely, even though others remain vocally opposed.

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More demands for a one world currency, this time from 420 banks…

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420 banks demand 1-world currency

The Institute of International Finance, a group that represents 420 of the world’s largest banks and finance houses, has issued yet another call for a one-world global currency, Jerome Corsi’s Red Alert reports.

“A core group of the world’s leading economies need to come together and hammer out an understanding,” Charles Dallara, the Institute of International Finance’s managing director, told the Financial Times.

An IIF policy letter authored by Dallara and dated Oct. 4 made clear that global currency coordination was needed, in the group’s view, to prevent a looming currency war.

“The narrowly focused unilateral and bilateral policy actions seen in recent months – including many proposed and actual measures on trade, currency intervention and monetary policy – have contributed to worsening underlying macroeconomic imbalances,” Dallara wrote. “They have also led to growing protectionist pressures as countries scramble for export markets as a source of growth.”

Dallard encouraged a return to the G-20 commitment to utilize International Monetary Fund special drawing rights to create an international one-world currency alternative to the U.S. dollar as a new standard of foreign-exchange reserves.

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New world economic order anyone?

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Seoul G-20 summit to set agenda for new economic order

By Lee Joon-seung
SEOUL, Oct. 10 (Yonhap) — The upcoming Seoul G-20 summit is expected to set the key agenda and lay the foundation for a new post-crisis economic order that will promote sustainable development for all countries, economists say.

Experts from thinks tanks such as the state-run Korea Institute for International Economic Policy (KIEP) and the Korea Institute of Finance (KIF) said that while contentious issues may not be resolved, broad understanding of financial reforms and balanced growth should be reached when leaders meet next month in the South Korean capital.

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More fear and uncertainty surrounding our economy.  I think uncertainty is the biggest understatement of the year.  It is for these times that God gave us His word so we would not be troubled.  We know he is in control and has a plan to keep us from the worst…but we must be watchful.

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Stocks drop as Fed rate-setter rattles investors

LONDON – World markets fell Tuesday after a leading U.S. rate-setter dampened expectations that the Federal Reserve is preparing a massive monetary stimulus next month and amid mounting speculation that China is planning to raised reserve requirements for banks to cool lending.

In Europe, the FTSE 100 index of leading British shares was down 42.51 points, or 0.8 percent, at 5,629.89 while Germany’s DAX fell 33.09 points, or 0.5 percent, to 6,276.42. The CAC-40 in France was 47.70 points, or 1.3 percent, at 3,720.79.

Wall Street is also poised for a lower opening as trading activity picks up following the Columbus Day holiday, which kept bond markets closed and stocks sluggish Monday — Dow futures were down 52 points, or 0.5 percent, at 10,911 while the broader Standard & Poor’s 500 futures fell 6.6 points, 0.6 percent, at 1,155.70.

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More talk of global currency war, this has move center stage next to Israel peace process concerns…

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George Soros warns China of global ‘currency war’

George Soros has warned that a global “currency war” pitting China versus the rest of the world could lead to the collapse of the world economy.

George Soros warns China of global 'currency war' 

The billionaire currency investor criticised China for deliberately keeping the yuan – its currency – low in order to keep exports cheap, which is hurting US competitors.

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More global currency and economic talk…keep your eye on the IMF…a lot of headlines recently surrounding them.

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Geithner urges greater IMF role in currencies

WASHINGTON (AP) – Treasury Secretary Timothy Geithner is urging the International Monetary Fund to play a bigger role in monitoring how countries manage their currencies.

Geithner told the IMF’s top policy committee on Saturday that the 187-nation lending institution must speak more forcefully about exchange rate policies.

Geithner’s remarks are the latest effort by the United States to bring more pressure on China to allow its currency to rise in value against the dollar. American manufacturers believe China is unfairly manipulating its currency to gain trade advantages.

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Click on the article title for a link to full original referenced article.

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How much trouble are we in?  Does this sound like a domino?

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California to Sell 24 Government Buildings for $2.3 Billion

The state announced Monday it is selling 24 government office buildings — including the Ronald Reagan State Building in Los Angeles and the San Francisco Civic Center — to a group of private investors for $2.3 billion.

Los Angeles, CA
Getty Images
Los Angeles, CA

Ron Diedrich, acting director of the California Department of General Services, announced it selected the offer from California First LLC, a partnership led by a Texas real estate firm and an Orange County private equity firm.

About $1 billion of the sale will be used to pay off bonds on the buildings, leaving more than $1.2 billion to go into the state’s general fund.

“After an extensive review of more than 300 bids that were received, I have determined that this offer presents the best value for the state,” Diedrich said in a statement.

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I guess if we won’t develop them, China will, how sad of a state is that?  How the mighty have fallen…

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China stakes claim to S. Texas oil, gas

HOUSTON — State-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields, potentially testing the political waters for further expansion into U.S. energy reserves.

With the announcement Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets, CNOOC lays claim to a share of properties that eventually could produce up to half a million barrels a day of oil equivalent.

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Ok, this is a huge sign of the trouble we are in.  Our own Federal Reserve is the second largest owner of our debt and only $25 billion behind China?  How many times have you heard that China owning so much of our debt is a bad thing?  I bet this is the first time most have heard that the Fed owns basically, just as much?  Why?

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Federal Reserve Is Now Second Largest Holder Of US Treasury Bonds

The Federal Reserve holds $821.128 billion of US Treasury Bonds, surpassing Japan today to become the second largest holder of US Treasury Bonds. The Federal Reserve is $25 billion away from surpassing China for the number one spot.

http://www.zerohedge.com/article/its-official-fed-now-second…

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It’s Official: Fed Is Now Second Largest Holder Of US Treasury Bonds

Today’s POMO is over: at $2.069 billion, the operation was right in line with our expectations, coming in at a lofty 12.16 submitted to accepted ratio, as investors apparently are not too crazy about the yield perspective of the 4 2013 CUSIPs that were repruchased. However, what is far more important is that with holdings of $821.1 billion, the Fed is now officially the second largest holder of US Treasurys. Next up- China.

While the official breakdown will likely be a few weeks late in coming, here is the math:

Fed holdings as of September 30: $811,669

Add:

Total: $821.128 Billion, which compares to Japan total $821.0 Billion as of July 2010

Congratulations, America: your central bank is just $25 billion away from being the Treasury’s largest creditor, and thus able to dominate any and all future debt restructuring negotiations with what is, essentially, itself.

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More commentary on whats to come, what to expect…

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Frank DiMora’s Blog – 10-08-10

Prophecy Sign:  In chapter 18 of the Book of Revelation we see people weeping over items which will be taken away from them.  As you can see gold and silver are two of the items. I quote, “The merchants of the earth will weep and mourn over her because no one buys their cargoes any more– cargoes of gold, silver, precious stones and pearls; fine linen, purple, silk and scarlet cloth; every sort of citron wood, and articles of every kind made of ivory, costly wood, bronze, iron and marble” (Rev. 18:11-12).  Watch the video and find out what you need to know about gold and silver.  The prices are going to go up and people will weep when it is taken from them as it states in the above prophecy.

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Click on the article title for a link to full original referenced article.

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I will limit my commentary, Frank does a good job linking the headlines to Bible prophecy.  Make sure to listen to the first video, Frank listed it twice and it is very good.  It is interesting to note, that the presenter is not looking at the events from a prophecy stand point but secular.  It is so much more reassuring looking at them from a prophecy view….

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Frank DiMora’s Blog – 10-07-10

Earlier today I put up a post on what is happening with the economy. I want to post this video again but alone, that is how important I believe this information is. If you haven’t read my earlier post today, which this video then please, please read my report for today by scrolling down to the earlier report. This blew me away as everything I have been warning you about, he address.  Jesus Christ is coming, let me say this again, pay attention, He is coming for His Children are you one of them? You can be by asking Jesus into your life today. If you don’t know what or how to receive Him, email and I will lead you to the feet of your savior Jesus Christ.

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More signs of a slumping global economy.  How long can we go without loosing our AAA rating?  If we do, it is over…

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Fitch Downgrades Ireland’s Rating on Cost of Banking Bailout

Fitch Ratings lowered Ireland’s credit grade to the lowest of any of the major rating companies and said there’s a risk of a further reduction.

Ireland was cut to A+ from AA-, reflecting the “exceptional and greater-than-expected cost” of the nation’s bailout of its banking system, Fitch said in a statement today.

The move comes a day after Moody’s Investors Service said it may cut the country’s rating. Ireland may have to spend as much as 50 billion euros ($69 billion) to repair its financial system, pushing the budget deficit this year to 32 percent of gross domestic product. Fitch said the rating could be lowered again if the economy stagnates and political support for budgetary consolidation weakens.

“Ireland is at the lowest point, it shouldn’t get any worse,” Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin, said in a phone interview. “We’re not funding at the moment. We’re in a comfortable situation.”

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