Category Archives: Financial/ Economic
New Yorkers protest the bankers and big government while the mainstream media remains silent.
RT.com/ USA | 28 March, 2011, 20:01
As Washington looks to save money and cut spending, one area to consider might be the US currency itself. A new study suggests eliminating one-dollar bills and replacing them with $1 coins could save the US billions of dollars.
Once a visual symbol of the strength of the US economy, the dollar bill could eventually be a thing of the past.
The US Government Accountability Office (GAO), in a formal proposal the US Treasury and Federal Reserve explained that eliminating the $1 bill in favor of a $1 coin could save the United States roughly $5.5 billion over the next 30 years.
Currently the US government is forced to spend a lot of money on maintaining the circulation of $1 bills because they are made of weaker materials and wear down much faster. Using coins would keep the currency pieces alive longer and cut production costs at the Treasury.
The GAO study estimated phasing out the bills would only require a four-year transition period, where the government would invest more money in the new currency initially, but make up for it by saving $522 million each year thereafter.
NewsMax | By Henry J. Reske and Ashley Martella | Monday, 28 Mar 2011 12:25 PM
President Barack Obama’s highly touted healthcare reform law offers bad medicine at higher costs for patients, healthcare expert James Capretta tells Newsmax.TV.
Obamacare will propel rationed services, limit Medicare coverage options for seniors, and create a huge new bureaucracy to run it, says Capretta, co-author of a new book, “Why Obamacare Is Wrong for America.”
In other words, the Patient Protection and Affordable Care Act signed into law a year ago March 23 doesn’t live up to its name, because it will do neither, Capretta said during the exclusive interview with Newsmax.TV.
“Rationing occurs when the government pays a very low rate for a service so low that the suppliers of the service no longer are willing to supply it so they leave the marketplace,” said Capretta, who was the top budget official for healthcare during the George W. Bush administration. “So, people then have fewer options to go see and get that service. That’s what’s happening under this law.
NewsMax | By Jim Meyers | Monday, 28 Mar 2011 12:51 PM
Billionaire Donald Trump says the massive demonstration that rocked London during the weekend will “absolutely happen” in the United States because of the economic policies of the Barack Obama administration.
More than 250,000 people took to the streets in London on Saturday to protest Britain’s toughest spending cuts since World War II.
Appearing on “Fox & Friends” on Monday morning, Trump said about the demonstration: “I think very strongly it is going to happen here, if Obama continues and remains our president, because he’s not fighting for us.
“He’s allowing other countries to take advantage of us. OPEC is a joke, what they’re doing, and China. I mean, most of our money’s going to OPEC and China, and we don’t have money for our people.
“So I would fully say that if this attitude persists, it will absolutely happen in the United States, and bigger and better than what you’re watching over in London.”
The real estate tycoon, who has announced he is strongly considering a run for president in 2012, added: “We’re spending money, and we’re losing money and jobs to other countries. If this weren’t happening, you wouldn’t have to make those social cuts. We have people who absolutely have no idea what they’re doing running this country.”
A dollar collapse could be in the cards within a few months as new technical analysis shows the the reserve currency support eroding and within the parameters of uncharted territory.
On Friday, March 25th, the dollar reached a low of 75.48 on the index. It had not fallen to that level since shortly after the credit crisis of 2008 ravaged both equities and the monetary system. Massive bailouts and Federal Reserve intervention helped the dollar to recover, and it moved past 80 on the index over the next two years.
However, since the Fed also began implementing Quantitative Easing (QE) I and II, the dollar has been under a continuous assualt as the the total amount of dollars has increased, and inflation has moved at a very fast rate in the last six months. Technical analysis shows that before we reach the end of QE2 in June, the dollar could fall below the index level of 72, which is the lowest we have seen in the modern era of the dollar after President Nixon took us off the gold standard, and simply floated the currency as a pure fiat entity.
What makes this dollar collapse possible is a number of fundamental factors on top of the technical ones we are seeing in M1 and M3. Foreign servicing of our debt has dropped off, and in fact, may go in reverse very shortly as Japan will sell treasuries to pay for basic needs and the rebuilding of their industry after the disasters this month on their mainland. Additionally, the US government is bankrupt, and now in a legislative debate on whether to raise the debt ceiling. Should Congress refuse to do this, then the US will not be able to sell debt instruments to keep the government functioning, and pay for the multitude of programs that are part of the nearly $100 trillion in unfunded liabilities.
Saturday, 26 Mar 2011 07:26 PM
By Chris Gonsalves
President Barack Obama’s misguided federal policies have stunted economic growth and endangered the American dream of a comfortable retirement, financial commentator and best-selling author Robert Wiedemer tells Newsmax.
“The government absolutely shares culpability in this,” Wiedemer says. “Government policies are responsible for a great many of our financial problems — the state of Americans’ retirements included.”
Wiedemer says such attitudes are a natural extension of the bad example Washington sets with its spending habits. “The idea with retirement is that you are supposed to save part of what you make,” he says. “So, what is the government doing? They are saying, ‘We don’t care how much we make, we’re going to spend a ton more than that and we’re not going to save anything.’ That sets up the mentality that you don’t have to worry about this anymore.”
Obama’s federal policies have fueled high unemployment and are claiming new victims, financial experts say: A record number of Americans now say they doubt they’ll be able to afford a comfortable retirement.
A new survey indicates that fear is heightened among a growing swath of U.S. workers who have little savings and no long-term financial game plan. Rather than adjusting the way they save for their golden years, most are simply lowering their expectations with plans to continue working well beyond normal retirement age, according to the Employee Benefit Research Institute’s annual Retirement Confidence Survey.
The report, released last week, shows 27 percent of American workers are not confident they’ll have enough money to retire and live well. That’s up 5 percent from last year, and marks the highest level of unease ever measured in the 21 years of the survey by EBRI, a Washington-based nonprofit research firm focused on health, savings, and retirement issues.