Quote of the week
“The U.S. government borrows money from taxpayers…gives it to Wall Street so they can lend it back to the taxpayers at a profit. Wall Street borrows ‘our money’ from the Fed at, say, 1%…then they lend it back to us at, say, 6% or 7%. That way, Wall Street makes money and we can still borrow what we need.” – Bill Bonner
by Mike Adams
“There will be a time when Washington is so bankrupt (both financially and morally), so corrupt and so far beyond saving that intelligent states like California will simply declare themselves to be sovereign nations. Although there may be the threat of military force to prevent such actions in the short term, ultimately Washington will be powerless to stop it because it will be unable to fund the military effort with worthless U.S. dollars. And if just one state successfully breaks away from the union, it will set a precedent that other states will follow.” more…
by Peter Schiff
“The brutal truth that no one in Washington dares acknowledge is that our systemic economic problems can only be solved by a reduction in consumer borrowing and an increase in savings. We must repair our national balance sheet and a painful recession is the only path to achieve this. By interfering with the market’s attempts to bring this necessary change about, all the proposals currently coming from Washington or bubbling up from think tanks and Nobel prize-winning economists, will only exacerbate the imbalances and lay the foundation for even greater losses and a larger crisis.” more…
by Chris Brown
“It is easy to criticize the US healthcare system, but we should be clear on one thing: it is not ‘free market’ or ‘private’ healthcare. A free market in healthcare would be more efficient and innovative, and offer better quality products and services, with lower prices than is currently the case.” more…
by Froma Harrop
“Harvard economist Jeffrey Miron estimates that legalizing drugs would save federal, state and local governments $44 billion in enforcement costs. Governments could collect another $33 billion in revenues were they to tax drugs as heavily as alcohol and tobacco. No one here likes drugs or advocates putting heroin on store shelves alongside ibuprofen and dental floss. Each state or county could set its own rules on who could buy which drugs and where and what taxes would be levied – as they now do with alcohol.” more…
In the news…
- UN economists warn of debt induced dollar collapse.
- House to push for $500 billion stimulus bill.
- The Democrats will not have their super-majority.
- More on deployment of U.S. troops on U.S. soil. The above analysis (first story), which indicates that the move is being made to deal with a possible break up of the United States, is an interesting, though perhaps fanciful, bit of insight.
- Ron Paul says end the Fed.
- U.S. loses over 500,000 jobs in November.
- Oil is at its lowest price since January 2005.
- Wrap up of the automaker’s journey to Washington, D.C.
And now the numbers
DOW Jones Industrials – 8,635.42 (-193.62/-2.19%)
Wilshire 5000 – 8,737.14 (-208.08/-2.33%)
CSI 300 (China) – 2,013.18 (+183.26/10.01%)
BSE 500 (India) – 3,278.82 (-16.78/-0.51%)
MICEX (Russia) – 562.34 (-48.98/-8.01%)
BOVESPA (Brazil) – 35,347.39 (-1248.48/-3.41%)
Gold/oz – 752.20 (-66.80/-8.16%)
Silver/oz – 9.43 (-0.80/-7.82%)
Copper/lb – 1.3735 (-0.276/-16.73%)
Oil/bbl (Brent) – 39.74 (-13.75/-25.71%)
Wheat/bu (CBT) – 4.755 (-0.8575/-15.28%)
Corn/bu – 3.0925 (-0.565/-15.45%)
Dollar/Euro – 1.2715 (+0.0022/0.17%)
Yuan/Dollar – 6.8709 (+0.0495/0.73%)
Yen/Dollar – 92.835 (-2.69/-2.82%)
Dollar/Real – 0.4123 (-0.0226/-5.20%)
3 Month Treasury – 0.01 (-0.03/-75.00%)
2 Year Treasury – 0.92 (-0.06/-6.12%)
10 Year Treasury – 2.70 (-0.22/-7.53%)
30 Year Treasury – 3.13 (-0.31/-9.01%)
Fed Target Rate – 1.00 (UNCHG)
U.S. Public Debt – 10,653,883,024,152.90 (+5,965,468,788.50/0.06%)
Not much to say this week. I’ve been ridiculously busy both with work and school. So no essay this week, though I did put together a winter car kit check list yesterday. Did I ever mention it’s freaking cold here?!?! It won’t be above 30 for the next two weeks. Frankly I have little hope that I’ll see any temperature above 30 for the next few months. And it’s been snowing too! Whee!
So I’m pretty tired and I’ve got to pick my wife up from work tommorrow morning. She’s working the night shift. I guess I’ll get to bed a bit earlier than usual tonight. Maybe have a glass of wine and watch some TV first. Have a great weekend and stay warm!