Stacy Summary: So, Bastille Day is mostly over. No guillotines or pitchforks were seen. And now the French are out dancing to bad music in the square! We have a great show coming up tomorrow On the Edge. I feel it in my blood!! The stories this week are so good and Karl Denninger seems to be firing on all cylinders these days. Seriously, in terms of headlines, here is so much to keep on top of and y’all have been just amazing at finding some great stuff! Here are the afternoon headlines . . . sorry @Mike2liverpool . . . still bad news!
- The Economy is Even Worse Than You Think (h/t @maxkeiser)
- This crisis is not over (by Tim Lee who appeared in Money Geyser)
For the US, the economy’s big problem is a lack of saving. There has been excitement about the personal savings rate rising to nearly 7 per cent. However, the rise in personal savings has been at the expense of government savings. The government has simply borrowed and given money to people. In the first quarter the national net savings rate remained sharply negative, at -1.4 per cent. It is unlikely to have improved much in the second quarter.
A negative national net savings rate means any growth of capital stock has to be financed from overseas. This does not provide a promising background for longer-term economic growth. The US current account deficit (which is equal to the requirement for external finance) has improved markedly, but this has occurred as investment has collapsed and not because of any rise in savings.
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Bloody Hell Keiser you JUST beat me to it!
Mike
Stacy i got time, my bussiness has lots of cash from the boom…………What i can’t fathom is WHY the UK £ has not SUNK?
I suspect other CB’s are “Helping” it.
Mike
@ Stacy – Zero Hedge has a couple of interesting videos up re: Goldman Sachs earnings. Spitzer didn’t really say anything new in the Bloomberg vid, but the CNBC one was pretty good.
http://zerohedge.blogspot.com/
I’m starting to think not long from now I will wake up in the middle of the night to a weird woosh and two short sucking noises (like an airplane toilet but faster). In the morning I’ll read a large hole mysteriously appeared where southern Manhattan used to be. Another one appeared in the City of London. The papers also report hordes of bankers are throwing themselves into the holes like lemmings and all pounds or dollars seem to have simply evaporated…
I could do a guillotine animation with Max Keiser pushing the lever..
LOL… the next WS pump on it’s way….
Intel reports 18 cts. EPS
( Estimated was 7 cts. … pretty low of course )
So I expect we’ll see all the talking heads out soon saying the recession is over !
ROTFLMAO !
Also the jump in the “savings” rate is not what it seems. According to Michale Hudson the rise in the personal savings rate is “It is not money in the bank to draw out in rainy-day emergencies like losing one’s job, as thousands are every day. The statistic means that 6.9 per cent of national income is being earmarked to pay down debt…” “The only way in which these savings are “money in the bank” is that they are being paid by consumers to their banks and credit card companies.”
Full article can be found here: http://www.counterpunch.org/hudson06302009.html
The “debt blob,” as Max called it, is devouring all.
As stacy said.. the things happening right now is unbelievable.. the stupidity and insanity shown by almost everybody in economics and politics is epic.
Guys, I heard something about a crises. Where can I get it? Is this the place by coincidence?
M, What?
@M,…….WELCOME,…YOU HAVE ENTERED THE PLACE OF COINCIDENCE THEORY AND CRISIS CREATION,..HUAAAH!!
Nassim Taleb on tackling the debt blob:
http://www.ft.com/cms/s/0/4e02aeba-6fd8-11de-b835-00144feabdc0.html
Dr. Faber
http://www.youtube.com/watch?v=LKzv74aleDE
Inflation adjusted gold chart
http://1.bp.blogspot.com/_cImeLmGfsVU/SlZMJAo8DSI/AAAAAAAAAPk/ohYlfCNK2nQ/s1600-h/000-goldinflated.jpg
@Phil
RE: the talking heads
I couldn’t believe the way the Canuck TH’s on BNN were practically fawning over Goldman Sucks’ Earnings release…
They seem utterly oblivious as to HOW they made the money…
(i.e. front-running the orders)
and on top of it, the Stockhouse board chatter seems to be dominated by people going gaga over this Head&Shoulders crap REGARDLESS of fundamentals (Even though I am a predominantly Technical Trader, I don’t ignore Fundamentals…)
I am thinking that we’ll soon see Big Pharma coming out with a new drug for “Chicken Little” Syndrome…
to go alongside with the Fibromyalgia drugs (which is just another fake disease)
utterly baffling…
in the meantime, I’m going to try and take advantage of this mass-psychology to score some tiny profits on the TSX…
It’s looking like a summer of volatility as per Marc Faber’s dictum… good for trading purposes…
U.S. Savings rate at 6.5% so they say.. The problem is that the government is absorbing all of that with spending. When the dollar collapses it will happen overnight,, that evening all is ok, and when you wake from your slumber the overseas market was not asleep but dumping the dollar at unprecedented levels and so it will be..You are ruined.
Oh well, on to the next empire
Re: above Taleb’s debt Bubble solution.
As I understand it Nicolas Taleb is proposing trading or transferring debt (Private) for equity (Government). Moving the debt from one side of the balance sheet to the other (Equity) and presumably freeing up people and money.
This is in contrast to the Japanese who have had their economy stalled for the last 20 years trying to balance the books by actually paying down debt. A long hard grind. This is not quite the Jubilee (general debt forgiveness) proposed by others, but it might have the same effect if the Gov is real lax in what it does with the equity e.g. write it down.
This idea is not new and has had two spectacular failures in the far past.
Debt for Equity is what John Law did for France [1] to try and save France and the Mississippi Company (Bubble). It didn’t work then because of government silliness and greed, sound familiar?
This was also done in the South Sea Bubble in 1717 [2] to try and save England and the South Sea company (Bubble). I guess that didn’t end that well either.
Here is a nice cartoon about John Law and the Mississippi Bubble, Canadian National Film Board
http://www.nfb.ca/film/john_law_and_the_mississippi_bubble/
[1] (2/5) Blowing Bubbles (A Financial History Of The World)
At 6:30 Niall Ferguson talks about the ‘Consolidation’ debt for equity.
http://www.youtube.com/watch?v=8Sll4eOCQY8&feature=related
[2] http://en.wikipedia.org/wiki/South_Sea_Company
Nicolas is a smart guy but, even I can see the pitfalls of the government taking equity and printing money at the same time. This would be a perfect Black Hole blacker than a Black Swan.
GS is the bubble and need to be popping.
Adrian Douglas has now discovered that the comex has been settling gold contracts with paper ETF’s instead of real physical gold http://harveyorgan.blogspot.com/2009/07/july-1109-commentary_13.html
Do you think the real reason they’ve only spent the first 10% of the stimulus money so far is because they haven’t sold enough treasuries to get the rest of it? Maybe they don’t have it yet, that’s why they pledged it into the future, to give them time to sell some paper.
Well, please listen to me now: – Sometimes when I watch your show I get the impression you think what is going on here is funny, like a muppet show. Here where I live they are going to impose mandatory vaccination on the populace. Hell, I don´t wanna get cancer, I have no power please masters this aint funny.
@Gilgamesh
Are they putting a gun to your head?
If not, then tell them you “already had it”….
Let them do the work to prove otherwise…
If they try to force you to do anything,
then start taking blood samples from their noses
don’t kowtow to anyone….
You first,
Family second,
Friends third…
Everyone else can get in line
unless you want to be a martyr…
Just like a mosh pit… someone hits you, you hit them back…
@Giuseppe Bagodonutti
Dear Guiseppe what can I do? The rulers are convinced they have to vaccinate us. They have computer systems, and there is nowhere to run, nowhere to go.
In this country it is illegal to carry a gun and pepper spray, – they will come to my home with police I think – I´m completely powerless. It is as Schopenhauer said “-Knowledge is power! – In hell, it is completely possible to have supreme power without knowledge and also to have supreme knowledge without any power!” I saw my own father wither away due to cancer, and if I can I would chose another destiny for myself.
@Gilgamesh
They can’t force you to take a needle…
Like I said, BULLSHIT your way out of the situation…
Where the fuck do you live???
Sometimes you NEED to fight for your right….
Rulers are more than an arm’s distance away…
Are you living in a police state?
In which case, the only option is to pack up and get the hell out…
outside of China or North Korea, I can’t imagine any other place so brutally dictatorial (well… maybe a few places in the A F R I C A N Continent)
Peter Schiff is running for the senate if he gets the funds from donations. Schiff 4 Seante.
Its at the latter part of this video. Basically finding out if the money comes in or not.
http://www.youtube.com/user/PeterSchiffChannel
Well dear Sir, I´m gonna BULLSHIT my way out of the situation, and I hope it works cause if it does not work the world will not enjoy my company in ten years.
And what about the Auditors?
re: The Auditors…
http://retheauditors.com/category/auditor-litigation/
What is going on with the air car?
It is one of the most exciting inventions of this century, yet it seems mired and imbroiled…
http://www.mdi.lu/english/
http://www.theaircar.com/acf/clarification.html
@ Mep
Great video from zerohedge.blogspot.
THIS presenter is more like a normal human being, and quite smart for a presenter (Max too! hehehe).
Camera wobbles are a little disconcerting though, not sure why they have to do that, or maybe the camera dude had a long lunch.
Re: the banks in the video.
Maybe the only answer is, if we can’t beat these guys, is to just start ‘Keiser Bank’ and get a piece of this action with loads of naughts on the end.
Seems like quite a profitable business. After all, the idea of a capitalist business system is to make loads of money. These guys have just taken it to a bizarre extreme.
Maybe its like the two rich, elderly gentlemen in ‘Trading Places’ where they bet $1 on Dan Ackroyd and Eddie Murphy could cope with the others lifestyle.
They are just doing it for fun.
It couldn’t be for money. That has now become redundant, surely. Trillions upon trillions is just not any fun – Lets really have some fun!
Making the world a better place might be a tad more difficult than some folks seem to imagine.
All “movements” and prominent organizations are created or co-opted by the multi-generational PTB (quasi-military bankers). Here’s a series of fascinating articles that sheds light on the matrix. Agent Jim Morrison fans, pay attention, or rather “Ah-tennnn-shun!”
http://www.docstoc.com/docs/6604252/Inside-The-LC-The-Strange-but-Mostly-True-Story-of-Laurel-Canyon-and-the-Birth-of-the-Hippie-Generation
Text only can be accessed from here:
http://www.davesweb.cnchost.com/
Stacy and Max. My god, even when I will die I will find you funny. Talking about economy decline while people die of cancer
The Final Phase- Get everybody too stoned to care about being homeless…
http://wonkette.com/409845/barney-frank-and-ron-paul-will-get-us-high
Atta Boy Jim…
Mr. Roger’s neighborhood…
http://www.lewrockwell.com/rogers-j/rogers-j23.1.html
@Mini US – Sounds like the video you’re referring to is the one with Dylan Ratigan and Barry Ritzholtz. Yep, that one was pretty decent, too.
Some news on the Ecuador case against Chevron and Chevron’s lobbying/PR campaign:
http://tinyurl.com/nvywsm
@snoppdiddy http://www.rba.gov.au/Statistics/Bulletin/index.html attached is a link directly to RBA [reserve bank of australia] website Tables Money and Credit Tables ‘D tables’ for the information you need [ level private debt in australia ] just go to this page and scroll down until you come to blue link ,’Money and Credit Statistics [D Tables] ‘ click on ‘Lending + Credit Aggregates D2′ starts from 1977 goes through until April 2009 , currently level private debt in australia is as of april this year $1918.5 billion dollars . sorry about all of this being so exceptionally t.e.d.i.o.u.s. but i guess they like it that way ?,it’s completely stupid to me ? [once you go the link and click on tables the table you need is x-cel spread sheet file]
@snoopdiddy ..second alternative for information you need regarding debt levels in the land of happy banking /aus. click on link to steve keens webpage site thread ‘toxic textbooks’ 16 th may , his reply to my question is in comments section about 1/3 of the page down ,just go to his comment reply posted ” May 19 th 8:14 am click on the blue RBA TABLE D2 link within his reply and that should take you directly to Table you need.[of course RBA ,as of april private debt level for australia was $1916 billion dollars ,they are not so crass to make any of this easy to find or by calling it ‘ Toxic Debt’….’lending and credit aggregates’ sounds a bit more civilised ? heh ,heh…or ..simply ‘D2 ‘.nudge ,nudge. happy banking everybody ! //www.debtdeflation.com/blogs/2009/05/16/economics-students-join-toxic-textbooks/#comments
@snoopdiddy . http://www.debtdeflation.com/blogs/2009/05/16/economics-students-join-toxic-textbooks/#comments
Consumer is KING without Us nothing goes. Also individualism is coming back via internet. Corporations better watch out! We the consumers can make them or brake them at any given time. People are connected more then ever and therefore hold all the real power. Remember the film: Super Size Me! Now Mc Donald’s has stopped asking customers “would you like that super sized” concluding my point that we will not be pushed around.
I wanted to share this interesting news featuring W. Buffet, B. Gates, B.Obama & Nobel laureate Tsung-Dao Lee. Investors, whizz-kids, power, and the Ivy league aim to spark the domestic real estate sector in West China. (from Danwei.org)
http://www.danwei.org/front_page_of_the_day/oriental_guardianjuly_15_2009.php
bombard
newsroom@presstv.ir
asking “when is ON THE EDGE coming on!!!!
employees at the local banks excluded from the Australian governments guarantee scheme (provided to the big four)…are now being asked to, you guessed it, work for free…
@gilgamesh – gallows humor
Just send an email to presstv complaining most presenters don’t look remotely like Max or Stacy, which negatively affects their credibility…(ok, lame attempt at humor in the morning..)
This news depresses me : Thailand rice production stalls even though there is rain because the farmers are in debt and the market is controlled. Makes me want to fly over there and loan some money to a farmer. This could of course also mean thailand wants to withdraw from the global market and makes up an excuse.
http://news.bbc.co.uk/2/hi/business/8130187.stm
This backs up my previous statement that we’re having inflation and deflation at the same time.
http://georgewashington2.blogspot.com/2008/10/answer-to-inflation-versus-deflation.html
thanks for all the links @marcus
@ Gilgamesh.
Hey mate.
Ok, get a note from a doctor, any doctor, saying that you have a serious neurological problem. Something like MS for example. Get this guy to say that if you take the vaccination it will put you in a wheelchair and that you will sue the living daylights out of them. There is proof that this happened in 1976 with a similar Swine Flu vaccination.
Hopefully that will put them off. Of course, you will have to be careful about future health insurance if they think you are sick. It is hard to get if they have a record of you being ill. Why would you want health insurance if you were sick? That’s how insurance companies think!
I don’t believe Max does think this is all a big joke. I actually appreciate the fact that someone can make a point without getting all depressed about everything. I find it very refreshing. Imagine if all we had was CNBC? Aaaaarrrggghhhh!!!!!!
Try a little humour. Maybe shove their needle in the doctors eye, That always gets a laugh!
@mini us
Now that was funny…….Laugh I nearly swallowed my enforced medication.
Stacy
You mentioned that Mr Market Ticker Karl Denninger was slated to be on the edge. Please do announce exactly when.
There’s two sites I make it a point to read everyday, Karl’s & Mish. Both are informative and good, but Karl is more animated.