Monthly Archives: September 2012

The Fed’s Balance At The End Of 2013: $4 Trillion

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“By the end of 2013, the Fed’s historical flow operations will be accountable for 24% of US GDP. Why is this important? Simple: when the time comes for the Fed to unwind its balance sheet, if ever, the reverse flow process will be responsible for deducting at least 24% of US GDP at the time when said tightening happens. If ever.  What is scariest, is that as of this moment, all of this is priced in. Any incremental gains in the stock market will have to come from additional easing over and above what Bernanke just announced.”

http://www.zerohedge.com/news/feds-balance-end-2013-4-trillion

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Where Will QE3 Take Us?

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“Some say the Fed panicked. I say it is business as usual. It is required to keep rates low to avoid the government going bust, which would happen if it had to pay too much interest on its debt. The Fed has essentially promised to destroy the dollar to keep supporting the banks and to keep the government alive, with debts that the political parties have no way of coming to an agreement on how to fix. The Fed has clearly told us what to expect.  The trajectory is unsustainable.”

http://www.caseyresearch.com/cdd/where-will-qe3-take-us

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Bill Bonner: After the Returns Stop Diminishing

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“The downside for Nazi Germany began almost as soon as it started. The regime shifted national resources towards armaments as soon as the Enabling Law of March 1933 gave him the power to rule by decree. More spending on the military left fewer resources for the consumer economy. As more and more men, steel and coal went into military output, non-military output declined, bringing down standards of living. The real wealth of the German people began to fall, almost immediately. At first, the decline was modest. Economists didn’t notice it. They focused instead on rapid industrial growth, falling unemployment, and belching smokestacks.”

http://dailyreckoning.com/downside-after-the-returns-stop-diminishing/

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The Tide of Power

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“Should a citizen flee from a First World country and seek asylum in a foreign country, the First World countries have, increasingly, been dictating to other countries whether or not their offers of asylum will be acceptable.  Just fifty years ago, this sort of behaviour was almost unheard of. Yet today, we have become accustomed to accepting that ‘the big guys can bully the little guys if they wish.’  Whilst bullying by the most powerful nations has existed for millennia, the world has never before seen the sophisticated minutiae of dominance that we are now witnessing, universally.”

http://www.internationalman.com/global-perspectives/the-tide-of-power

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Russian army unit fires on school during ‘anti-terrorist’ operation

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“Russia on Friday launched an investigation after an army unit accidentally fired mortar shells into the grounds of a boarding school in the troubled North Caucasus region of Dagestan.  Russian television showed smashed windows at the school in the town of Buinaksk after the early-morning incident, in which none of the sleeping children was injured.  The country’s military investigators acknowledged in a statement Friday that the shells were fired by a neighbouring military unit that was taking part in an ‘anti-terrorist’ operation against militants.”

http://www.rawstory.com/rs/2012/09/14/russian-army-unit-fires-on-school-during-anti-terrorist-operation/

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Texas, North Dakota universities order evacuations over alleged ‘Al Qaeda’ bomb threats

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“A University of Texas at Austin spokesperson said Friday morning that a man with a Middle Eastern accent claiming to be with Al Qaeda called in and said he placed bombs all over campus, prompting university officials to call for an evacuation.  North Dakota State University ordered an evacuation at 10:15 a.m. following a bomb threat. No further information was available.”

http://www.rawstory.com/rs/2012/09/14/university-of-texas-orders-evacuation-over-alleged-al-qaeda-bomb-threat/

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U.S. embassy in Tunisia on fire as protesters climbed walls

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“Protesters reportedly climbed the walls of a U.S. embassy in Tunis, the capital of Tunisia. The building is now on fire, according to a report by Al-Jazeera English.  He said the protesters were mostly made up of young men who were ‘to some extent religious’ and were offended by an anti-Islamic movie that was credited with sparking violent attacks that resulted in the deaths of four U.S. officials in Libya, including U.S. ambassador Chris Stevens.”

http://www.rawstory.com/rs/2012/09/14/u-s-embassy-in-tunisia-on-fire-as-protesters-climbed-walls/

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Islamist protesters burn German and British embassies in Sudan

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“Around 5,000 protesters in the Sudanese capital angry over an anti-Islam film on Friday stormed the embassies of Britain and Germany, which was torched and badly damaged.  Police fired tear gas to disperse the protesters as several of them scaled the roof of the German embassy and others attacked its facade and tore down the flag to replace it with a black Islamist one.  The mob, furious over an anti-Islam film produced in the United States that has triggered similar violence in Libya, Egypt and other parts of the Arab world, then set fire to the building.”

http://www.rawstory.com/rs/2012/09/14/islamist-protesters-burn-german-and-british-embassies-in-the-sudan/

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Pentagon: U.S. sends team of Marines to Yemen

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“The United States has sent Marines from the Fleet Anti-terrorism Security Team to help protect its embassy in Yemen during demonstrations, the Pentagon said Friday. ‘A FAST platoon is now on the ground in Sanaa,’ spokesman George Little told reporters, describing the deployment of the 50-strong unit as a ‘precautionary step’ amid anti-American unrest in the Middle East.  Little told reporters there were no immediate plans to evacuate the Yemen embassy, but that security would be stepped up.”

http://www.rawstory.com/rs/2012/09/14/pentagon-u-s-sends-team-of-marines-to-yemen/

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US Government Spends Millions Building Roads Overseas

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“A little known US government agency has spent hundreds of millions of US taxpayer dollars to build roads in foreign countries — including those openly hostile to American interests. The Government Accountability Office (GAO) on Wednesday released an audit of the Millennium Challenge Corporation program that was supposed to build 1132 miles of road in Armenia, Cape Verde, Georgia, Honduras, Nicaragua and Vanuatu. Only 387 miles were actually built.”

http://www.thenewspaper.com/news/38/3896.asp

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