California's
New 'Dust Bowl' - (www.zerohedge.com) For the state that produces one-third of the
nation's fruits and vegetables, the driest spell in 500 years has prompted President
Obama to make $100 million in livestock-disaster aid available within 60
days to help the state rebound from what he describes is " going to be a
very challenging situation this year... and potentially some time to
come." As NBC reports,
Governor Jerry Brown believes the "unprecedented emergency" could cost
$2.8 billion in job income and $11 billion in state revenues - and as one
farmer noted "we can't recapture that." Dismal recollections of the
1930's Dust Bowl are often discussed as workers (and employers) are
"packing their bags and leaving town..." leaving regions to "run
the risk of becoming desolate ghost towns as local governments and businesses
collapse." Via NBC,
"The truth of the matter is that this is going to be a very challenging
situation this year, and frankly, the trend lines are such where it's going to
be a challenging situation for some time to come," Obama said Friday
during a meeting with local leaders in Firebaugh, Calif., a rural enclave not
far from Fresno. Obama promised to make $100 million in livestock-disaster aid
available within 60 days to help the state rebound from what the White
House's top science and technology adviser has called the worst dry spell in
500 years.
ART CASHIN: Central Banks Have Built Up 'A
Very, Very Dangerous Situation' - (www.businessinsider.com) In
a new interview with King World News,
Cashin warns that financial market conditions remain very risky. From the
interview: What I am saying is: They thought they were going to solve a
desperate problem by desperate measures. I don’t believe it’s having the
effect they wanted, and it’s building up a very, very dangerous
situation. If that money were suddenly to get velocity, inflation could
break out. Conversely, by pushing on a string and not getting anything
done, they may wind up being in a spot where, if the economy moves to
stall-speed, we’ll get deflationary pressure. Yes, they’ve begun treating
the patient with very, very drastic remedies, and my concern is: Is it
ultimately damaging the body in a way that will bring back some of the horrors
they tried to avoid?
Gold price signals China credit bubble bursting as investors seek safety - (www.telegraph.co.uk) China’s “unfolding credit crunch” is having an unforeseen and dramatic impact on gold prices as investors urgently stock up on the precious metal as a form of financial protection against a sharp correction in the world’s second largest economy. This is the main reason why gold prices have unexpectedly shot up more than 10pc to breach $1,300 (£776) an ounce for the first time since November against the prevailing forecasts for weaker demand made by many industry experts at the beginning of the year, according to Adrian Ash, head of research at gold trading platform BullionVault.com.
Gold traded on the Shanghai Gold Exchange has
also reached a three-month high.
Lech Walesa: Obama Disillusioned Me Most – (www.newsmax.com) Walesa
won the Nobel Peace Prize in 1983, and served as Poland's president from 1990
to 1995. Today he heads the Lech Walesa Institute, which is dedicated to
democratization and his personal legacy. As for his views on Obama, Walesa
declares: "Personally, I feel that two politicians disillusioned me the
most — myself and President Obama. I prefer to skip talking about myself, but
let's discuss why Obama has been such a disappointment. "When he was
elected, everyone hoped and expected that he would reform not only the United
States but also the rest of the world. But he failed to implement any
constructive reforms. Moreover, it seems like perhaps he doesn't even care if
America is still perceived as the
superpower it once was." He added, with tongue slightly in cheek: "If
that's the case and if the U.S. doesn't really want to be a superpower anymore,
I'd say let Poland take over that leadership and we'd take care of the rest. I
promise you, we'd know what to do." Asked if the world has lost faith in
the United States as the lone superpower and world policeman, Walesa responds:
"The United States still holds the military leadership in the world, no
question about it. But economically, I think you're much weaker. Most
importantly, I think the United States no longer leads the world morally and
politically. They lost that power after getting involved in the Iraq and
Afghanistan wars.
[Morgenson] The Untouchable Profits of Fannie Mae and Freddie Mac - (www.nytimes.com) Would you buy stock in a company that barred you from sharing in its future earnings? Of course not. Participating in the upside is what stock ownership is all about. And yet, as of December 2010, holders of Fannie Mae and Freddie Mac common stock were subject to such a restriction by the United States government. They didn’t know it at the time, though, because the policy was not disclosed. This month, an internal United States Treasury memo that outlined this restriction came up at a forum in Washington. The memo was addressed to Timothy F. Geithner, then the Treasury secretary, from Jeffrey A. Goldstein, then the under secretary for domestic finance. In discussing Fannie and Freddie, the beleaguered government-sponsored enterprises rescued by taxpayers in September 2008, the memo referred to “the administration’s commitment to ensure existing common equity holders will not have access to any positive earnings from the G.S.E.’s in the future.”
[Morgenson] The Untouchable Profits of Fannie Mae and Freddie Mac - (www.nytimes.com) Would you buy stock in a company that barred you from sharing in its future earnings? Of course not. Participating in the upside is what stock ownership is all about. And yet, as of December 2010, holders of Fannie Mae and Freddie Mac common stock were subject to such a restriction by the United States government. They didn’t know it at the time, though, because the policy was not disclosed. This month, an internal United States Treasury memo that outlined this restriction came up at a forum in Washington. The memo was addressed to Timothy F. Geithner, then the Treasury secretary, from Jeffrey A. Goldstein, then the under secretary for domestic finance. In discussing Fannie and Freddie, the beleaguered government-sponsored enterprises rescued by taxpayers in September 2008, the memo referred to “the administration’s commitment to ensure existing common equity holders will not have access to any positive earnings from the G.S.E.’s in the future.”
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