Rekjalhew

November 18, 2008

China, Buying Up America For The Kill.

by @ 11:24 am. Filed under Business, Evangelicals Under Attack

While America builds a grave of debt for herself, China is rushing in to pick up the bones.

China Passes Japan as Biggest U.S. Treasuries Holder (Update1)

By John Brinsley and Rebecca Christie

Nov. 18 (Bloomberg) — China surpassed Japan in September to become the biggest foreign holder of U.S. Treasuries, as foreign investors sought the relative safety of government debt as stocks plunged 9.1 percent that month.

Total net purchases of long-term equities, notes and bonds increased a net $66.2 billion in September from $21 billion the previous month, the Treasury said today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $143.4 billion, compared with net buying of $21.4 billion the month before.

China led all foreign official investors in September by posting a net increase in U.S. Treasuries for the sixth month in the past seven, bringing its total ownership close to $600 billion. Japan was a net seller of Treasuries for the fourth month in the past six.

“The details of the report paint a much more positive picture of cross-border investments than expected,” said Michael Woolfolk, a senior currency strategist at Bank of New York Mellon Corp. “China, along with others, is showing more demand than anticipated for U.S. assets.”

Economists predicted international investors would buy a net $27.2 billion of long-term securities in September, based on the median of seven estimates in a Bloomberg News survey.

China leapfrogged Japan, increasing its Treasury holdings by $43.6 billion to $585 billion, the report said. Japan, now the second-largest foreign owner of U.S. government debt, reduced its holdings by $12.8 billion to $573.2 billion.

China Demand

China’s ownership of U.S. government debt has doubled since July 2005, while Japan’s holdings are down from a peak of $699 billion in August 2004.

Foreign demand for Fannie Mae, Freddie Mac and other U.S. agency debt increased from a month earlier. Purchases of long- term agency debt totaled a net $6.2 billion, compared with net sales of $8.7 billion in August.

The Treasury’s figures include both agency debt and mortgage-backed securities and aren’t restricted to Fannie Mae and Freddie Mac bonds. Mortgage-backed securities of Ginnie Mae and corporate debt of the Federal Home Loan Bank System are also included in the report.

Stocks plunged and Treasuries rose in September as Treasury Secretary Henry Paulson negotiated for two weeks with Congress over a $700 billion plan to address the worst financial crisis in 70 years.

The U.K., which through London acts as a transit point for international investors, especially those in the Middle East, bought $30.3 billion of Treasuries, bringing holdings to $338.4 billion.

Let me show you some video of how America’s new largest treasuries holder and likely future largest debt holder treats Christians. Below is a video playlist of 7 short videos. Please withhold comments till you’ve had an opportunity to view them all in full.



Playlist: Abuse of Christians in China

Hold fast to Christ, pray for our persecuted brothers and sisters and pray our Lord returns swiftly. We may have to endure some pain, but the eternal reward is more than worth it.

November 12, 2008

Some Financial Analysts Are Starting To Claim The US Is Headed For Economic Doom!

by @ 1:15 pm. Filed under Business

I’ve already mentioned how America was economically in bad shape and making things worse.

But check out what was said in the exchange in the video on this web page.

I’m just saying, beware of rough water ahead.

Related posts:

November 11, 2008

No Need For The Government To Watch You, When All The Corporations Already Are.

by @ 12:03 am. Filed under Business

Just an interesting documentary, I thought you all would be interested in viewing.

CNBC “Big Brother, Big Business” Recorded Nov 1, 2006

Please withhold comments till you’ve viewed the video in full.

September 30, 2008

I Might Be Against A Ron Paul Presidency, But You Better Listen To The Man When He’s Talking About The US Economy.

by @ 12:55 am. Filed under Business

I mean, this is the stuff I’ve been talking about, so I have to say when the man is right he’s right.




Ron Paul blasts bailouts 9-19-20 ‘the unconstitutional government- proposal’

Failures have to be allowed to fail, not be propped up with magic money.

Congressman Paul was also on the CNN morning show last Friday. I don’t have video, but please read this short transcript of the interview.

CNN interview With Ron Paul about economic bailout proposal.

Now, one House Republican says that the government is trying to fix a problem that government created using the same ideas that actually created it. OK. He is not just any House Republican. He’s Ron Paul, congressman from Texas, former candidate for president, and a giant among supporters of limited government.

Congressman, good to see you.

REP. RON PAUL (R), TEXAS: Thank you. Nice to be with you.

PHILLIPS: Boy, a lot of drama going on, wouldn’t you say?

PAUL: Oh, yes, a lot of excitement. I wish it weren’t so serious and we could have a little bit of fun, but it is very serious. There’s no doubt about it.

PHILLIPS: Definitely. And my question to you is, this bailout plan, I mean, should the government even be stepping in? Is it lawmakers’ responsibility to bear the brunt of this?

PAUL: Oh, no, it isn’t. There’s a responsibility of government when there are problems like this. Sort of like after Enron, there was a responsibility, but the responsibility was assumed by the state of Texas. A lot of fraud went on, and the people who committed fraud ended up in jail. And the market dealt with the rest.

The company was essentially bankrupt. They had dealt with derivatives. And the company went bankrupt and the stock went to zero. So that’s a good way to handle it.

And Lehman Brothers was handled the same way, and there’s still some products left in Lehman Brothers. And it’s going to be bought up by stronger hands. That is the important thing, that the liquidation of that investment, bad debt, gets over with. The quicker, the better.

But when people make mistakes, it’s not the responsibility of the government to go in and buy these assets that have no value. But the mistakes were made because of so many contributing factors by the government, and particularly the Federal Reserve system.

PHILLIPS: Well, let’s talk about who really is at fault here. I mean, I had and a chance to interview an FBI investigator yesterday. His job basically is to investigate corruption on Wall Street. And he said look, there is no simply no oversight.

The SEC is not doing its job. Other commissions are not doing the jobs. Because when it comes to these high-powered companies, high-paid CEOs, and lots of money, that they are the ones giving big donations to the individuals that are supposed to be keeping an eye on them. And they just don’t want to touch it.

PAUL: Well, it shows that the system doesn’t work. So basically, the preemptive strike of a regulator essentially never works. It didn’t work to protect us against Enron, but the laws against corruption did work. I mean, they committed fraud and they were convicted.

So, I’m not a regulator. I’m a regulator due to the market, but not by bureaucrats who can be bought off.

PHILLIPS: So, Congressman, what do we do? If the answer isn’t regulators, how do you prevent this type of fraud and corruption, and an economic meltdown like the one we are seeing now where taxpayers are suffering tremendously?

PAUL: Well, they haven’t yet. They only suffer because the government has been too much involved in devaluing their currency, and now they want to devalue their currency more. So the most important thing is not to stick it on the taxpayer.

What we want to do is to get out of the way and let the liquidation of debt occur. We are unfortunately doing the bad things we did in the early 1930s. We wouldn’t allow the market to adjust.

Prior to that, we had recessions, but they were never long lasting. Now, since we’ve adopted this principle of regulation and trying to patch together inflated bubbles, it doesn’t work. It just prolongs the agony, and this is what we’re doing now. Instead of a quick correction, what we are going to do is have a situation that’s going to last not a year, but maybe a whole decade.

PHILLIPS: Real quickly, will we see a bailout plan signed off on before the next president takes office? What do you think?

PAUL: Yes, I’m pretty pessimistic, so I would say they’re going to pass it. Yes, they’re going to pass it. They’ve already spent $700 billion, and that’s a drop in the bucket. And they want another $700 billion.

They originally asked that it not be reviewed by any court. They’re very, very bold, and they’re socializing this nation and bankrupted this nation. They’re going to destroy the dollar before it’s all over if we don’t take this in hand.

PHILLIPS: Congressman Ron Paul.

Always interesting to talk to you, sir. Appreciate it.

PAUL: Thank you.

Now this really is all about temporal money. No amount of money can save your soul. Eternal security comes in knowing Jesus Christ and believing on Him alone for salvation. But it’s interesting watching things transpire and a nation dig a economic hole for its self.

The politicians are going to continue trying to press for the bailout bill until they get it.

September 29, 2008

The Bailout, This Thing Is Just Terrible…

by @ 2:16 am. Filed under Business, Nuts on Parade

An article about the big mess: Crisis Hits Europe’s Banks As U.S. Seals Bailout Deal

Never mind that most Americans are against it, don’t go thinking your thoughts on this matter any. They’re going to ram this through and you can shout in the streets all you want, they’ll either ignore it or just lock you up for getting in the way.

Some commentators have mentioned that this is the biggest government intervention since the Great Depression, but at least in the past the lawmakers allowed a depression to occur without trying to jump in ahead of time and take over. They allowed the market to do some self correction instead of just running to nationalization as the cure early. As more and more of America is under federal control, beware of fascism.

Here are some quotes from the article above and my thoughts on it.

The White House and congressional leaders agreed on a deal to authorize the biggest banking rescue in U.S. history.

The $700 billion program would effectively nationalize an array of mortgages and securities backed by them — instruments whose deteriorating value has clogged the nation’s financial system.

The government taking over large portions of America’s financial infrastructure. Seems that would limit the independent flow of commerce. Instead of the market correcting, a prop of magic money is being put under the mess. Mess that should be allowed to depress, fall in, so it might correct as a market should. Instead, what has failed is being failed-up!


The bill leaves many mechanics of the operation up to the Treasury. Among these are the crucial issues of how the U.S. government would decide which assets it will buy and how it would decide what to pay for them. The legislation leaves the Treasury 45 days to issue guidelines on those procedures. The bill awaits votes in Congress starting on Monday.

So basically this all hit the skids with the Treasury watching and now the Treasury, which basically works in the interests of bankers is going to write the rules. Certainly the Treasury works in the interests of bankers, because they wanted bail out and the Treasury ran to give it to them. This all was not inspired by consumer groups.


From big Wall Street houses to small community banks, executives have expressed an interest in signing up for the bailout. But some have said the extent of their involvement will depend on critical details.

Money hand outs, just what you don’t want to give a financial failure, more money.


The political fallout from the bailout could be substantial, given the enormous expenditure of taxpayer money. Some polls show wide opposition. But the legislation includes provisions designed to guard against ultimate losses for the government.

What polls don’t show wide opposition, if just “some” polls show wide opposition? Polls of bankers?!!!

Guard against losses, oh yea, right. These bad loans were supposed to be guarded against loses before this by their own insurers, but that didn’t work out, did it? Now we’re supposed to believe it’s going to work well with the government doing it 🙄 .


Sellers of assets could include a broad range of financial entities — not just banks but also credit unions and pension funds. The assets offered to the government must have been originated or issued on or before March 14, 2008.

Basically anybody who proved to be bad with lending is going to be eligible for receiving what you don’t give a financial failure, more money.


The plan would impose some curbs on executive compensation at firms that sell assets to the government. These include a ban, for those that sell a large amount of securities to the U.S., on creating new “golden parachute” payments to departing top executives. Companies also would have to have provisions to “claw back” past bonuses found to have been based on misleading financial statements.

Now this is one of the biggest crocks of the whole thing. The supposed ban against “golden parachute” packages. I knew this was going to be BOGUS. Because government can’t go changing existing CEO contracts. They are going to stop the creation of NEW packages. But THE GOLDEN PARACHUTES ARE ALREADY IN PLACE AND READY TO BE DEPLOYED! Executives who go now, will leave with all the terms of the deal they signed on with, including their already established packages. That new big packages won’t be made means nothing, the failures will get theirs from already existing deals. And so long as they report how bad of a failure they were without making up the figures they’ll get more money and their already existing “golden parachute” will be well funded. If these companies were allowed to go under, there would be no money for the existing “golden parachutes”.


The Treasury would receive warrants giving it the right to acquire nonvoting common stock or preferred stock in firms benefiting from the bailout. The program would be subject to oversight that includes a bipartisan committee and the Government Accountability Office. The GAO would have an office located within the Treasury Department.

Nationalization, the government owning companies and if the companies continue to fail do you think the government level of influence will decrease? If the company is found to be doing something wrong (and so many companies are doing something wrong) do you think government influence will decrease? This is the start of government’s flat out taking over of corporations.


One likely method of purchasing and pricing assets is a reverse auction. In this, firms would offer to sell securities at given prices, and the Treasury could buy the least expensive on offer. Institutions would presumably offer to sell at prices high enough to alleviate their woes but not so high they’d be passed over in favor of lower-priced offers.
….

And if everybody is padding what they want, oops I mean need, padding it a some, then the whole process is inflated.


The agreement came together only after concessions on all sides. Democrats backed down from a proposal to let bankruptcy judges alter the terms of mortgages, and from another that would have steered government profits from the package to affordable-housing programs. The Bush administration, for its part, agreed to much broader executive-compensation limits than it originally envisioned, among other things.

Here’s yet another reason I won’t be voting for McCain or Obama (or any of the others I know of that are running for President). Notice Obama and Democrats talk about doing things for those who are not well off, but they simply gave to the bankers. Notice McCain and Republicans don’t favor a free market, although they talk about favoring such, they favor giving to bankers. They all can come together, to give bankers money, the worst bankers, the biggest failures.

Well this all will likely lead to more inflation, possibly even stagflation and given failures are being propped up with money the government has printed and taxpayers can’t afford the government’s bills. This will likely lead to a future crash that’s even bigger than would have occurred now.

Kicking the can up the road, only makes it more dirty.

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