Friday, September 14, 2012

Deficit Spending and the "Coercion-Backed Greenback" with Edward Harrison


Welcome to Capital Account. US consumer prices rose in August by the most in three years. The Consumer Price Index increased .6 percent, with gasoline prices accounting for 80 percent of the rise. But should we even believe government statistics? And how does QE fit into the inflation calculation as central banks try to reflate asset prices? Marc Faber, Gloom Boom and Doom publisher, lays out his case for a deflationary collapse. We play the second part of our interview with him from yesterday's show in the second half. And yesterday, as the news of QE overshadowed all other financial news, a 500 billion dollar spending bill easily passed in the House. The spending package aims to fund federal operations until March. Meanwhile, the US government has borrowed nearly 35 cents for every dollar it has spent this year according to the Wall Street Journal. Lawmakers hope to address spending after the election. We talk to Edward Harrison, founder of Credit Writedowns, about the dangers of deficit spending. Also, since the Fed is targeting depressed housing prices with its MBS policy, we play the game "Economic Symptom or Disease?" The Federal Reserve is trying to treat this symptom with QE, instead of addressing the disease of the high debt - debt that keeps people from buying homes or getting out of them. We talk about this new game show idea in Friday's Viewer Feedback.

Marc Faber on Hedging the Bernanke Put and QE3 with Gold, Land and Equities!


Welcome to Capital Account. The Fed gave the QE-addicted markets another dose of its stimulus drug today as it announced another securities purchase program. The Fed launched an open-ended program to buy $40 billion in mortgage backed securities each month, a program that will continue until the labor market improves. The Fed also committed to record low interest rates even after the economy strengthens. To what end will the Fed pursue this accommodative stance? In response to this action gold climbed to a six month high. Marc Faber, Gloom Boom and Doom publisher, has said that he will not sell any of his gold as long as people like Ben Bernanke are running the world's central banks. We ask Dr.Faber about his near term outlook for gold, and what he thinks of Ben Bernanke's monetary policy. Also, an editorial from Xinhua, the official Chinese news agency, warns that massive spending to boost China's economy could be detrimental. How does this effect China's growth or slow down? We ask Marc Faber, founder of Marc Faber limited and author of the book "Tomorrow's Gold," about likelihood of a contraction in China and other Asian economies. Plus, in today's episode of "Loose Change," Lauren and Demetri discuss the reports of Jon Corzine's meeting with officials from the Department of Justice last week, ten months after MF Global failed.

The Sources of the Euro Crisis and the EU Superstate with Godfrey Bloom!


Welcome to Capital Account. Germany's Constitutional Court ruled the Eurozone's permanent bailout fund, also known as the ESM, does not violate the country's laws. Reportedly, there is some ambiguity in the ruling that could beget more political wrangling. Lauren speaks with Godfrey Bloom, Member of the European Parliament and the UK Independence Party, about what motivated the court's decision and the problems that lie ahead for the European Union. Meanwhile, the European Commission president Jose Manuel Barroso, in his State of the Union address, called for a federation of nation states (a European Superstate) and unveiled plans for the ECB to supervise all Eurozone banks. But was it the lack of a centralized banking regulations that contributed to the debt crisis or is this really about something else? We ask Godfrey Bloom if integration is really the solution to the EU's problems. And despite attempts at integration and consolidation in the EU, there are more signs of fracture. While Spanish leaders delay decisions on seeking an ECB bond bailout, the crisis fuels the independence movement in the Spanish region of Catalonia. Could this be one of the ironies of integration? Plus, in today's episode of "Loose Change," Lauren and Demetri discuss Apple's latest announcement: the iPhone 5. According to Reuters this gadget won't just benefit the tech world, it could boost our economy too!

David Kotok on EU Fireflies and a Market Rehab for Easy Money!


Welcome to Capital Account. The headlines today tell two different narratives about the US stock market. According to Bloomberg, stocks "advance ahead of Fed decision," but according to the Financial Times, the "rally loses steam ahead of the meeting." Whether you believe the headlines or not, they underscore the impact of macro-trends on the markets today. Our guest, David Kotok, of Cumberland Advisors, explains why the markets are addicted to QE and the consequences of this dependence. Also, tomorrow the German Constitutional Court is expected to rule on the constitutionality of the ESM, a vote that is viewed as key to the Eurozone's future stability. David Kotok, chairman of Cumberland Advisors, will explain why this action in Europe can be summed up in a single dance: the "dance of the fireflies." He joins us to shine light on the situation. Plus, what does the growth in Exchange Traded Funds, or ETFs, indicate about a shift in investment trends? We talk to David Kotok, author of the book, "From Bear to Bull with ETF's", about the role of ETFs and the future of the market. And in today's episode of "Loose Change," Lauren and Demetri discuss RGBAnarchy's latest video that features Ben Bernanke and Paul Krugman drowning in the paper of their own creation!

Imam: Anti-Islam Film Protests 'Heartbreaking'


Members of the Muslim community in Washington DC are condemning this week's deadly anti-American violence in the Middle East. Mohamed Touihri, who is originally from Tunisia, says some 'may do anything to defend' the Prophet Muhammad. (Sept. 14)

Pizza Museum Serves Up Slices, Memorabilia


What happens after you earn the Guinness World Record for largest collection of pizza memorabilia? In Brian Dwyer's case, you open what's being billed as the nation's first pizza museum. (Sept. 14)

Raw Video: Rival Protests in Libya Over Embassy


About a hundred people gathered in the Libyan city of Benghazi on Friday to protest an anti-Islam film. Meanwhile another group converged in a different part of the city to condemn the attack earlier this week on the U.S. consulate. (Sept. 14)

Chicago Parents Anxious for Teachers Strike End


Chicago's nearly weeklong teachers strike appeared headed toward a resolution Friday after negotiators emerged from marathon talks to say they had achieved a "framework" that could end the walkout in time for students to return to class Monday. (Sept. 14)

La indignación musulmana se propaga por la región


Una película blasfema para los musulmanes provocó ataques contra embajadas de EE.UU. en varios países. A los disturbios en Egipto, y que se propagaron a Libia, Túnez, Yemen e Irán, también se sumaron Líbano y Omán. Varios cientos de personas se manifestaron en la ciudad libanesa de Trípoli, y quemaron una bandera de EE.UU mientras coreaban "Dios es grande" e izaban pancartas y banderas negras con el lema "No hay más Dios que Dios y Mahoma es su profeta". Algunos manifestantes pedían la expulsión del embajador norteamericano en el Líbano. Además, en la ciudad de Mascate, en Omán, se desarrolla otra manifestación frente a la embajada norteamericana, mientras en Yemen también han prendido los ánimos antiamericanas en protestas que ya han dejado 4 muertos y 34 heridos. Asimsimo, en Teherán cerca de 500 personas se manifestaron frente al edificio de la embajada de Suiza, que representa los intereses estadounidenses en Irán. Los disturbios en la región estallaron este martes, cuando miles de personas se manifestaron ante la embajada estadounidense en El Cairo -frente la que se registran actualmente nuevos disturbios ya por el cuatro día consecutivo- para denunciar una película que consideran insultante en dirección a Mahoma. Pocas horas después, un grupo de islamistas armados atacó el consulado de EE. UU. en la ciudad libia de Bengasi, lo que costó la vida al embajador de EE.UU. y a otros tres funcionarios. Según Libia, determinados grupos pro-sharia estarían detrás de la violencia.

Paraguay: profesores protestan por bajos salarios y pagos atrasados


Miles de maestros salen a las calles de Asunción para exigir un aumento salarial y mayores inversiones en la educación. El ex ministro de educación Víctor Ríos opina que la colaboración del gobierno de Franco con los medios mantiene a los sectores sociales desmovilizados.

El mundo islámico quema banderas de EE.UU. en protesta contra una película "blasfema"


Las protestas contra la película estadounidense 'La inocencia de los musulmanes' no cesan. Cientos de manifestantes de un grupo salafista ultraconservador salieron a las calles de la sureña ciudad libanesa de Sidón en la noche del jueves, para expresar su indignación por el filme que consideran una burla al islam y al profeta Mahoma. Los manifestantes en Sidón quemaron banderas de Israel y EE.UU. Acciones similares tuvieron lugar en Yemen y Egipto, donde continúan las protestas. Una película blasfema para los musulmanes provocó ataques contra embajadas de EE.UU. en varios países. A los disturbios en Egipto, y que se propagaron a Libia, Túnez, Yemen e Irán, también se sumaron Líbano y Omán. Varios cientos de personas se manifestaron en la ciudad libanesa de Trípoli, y quemaron una bandera de EE.UU mientras coreaban "Dios es grande" e izaban pancartas y banderas negras con el lema "No hay más Dios que Dios y Mahoma es su profeta". Algunos manifestantes pedían la expulsión del embajador norteamericano en el Líbano. Además, en la ciudad de Mascate, en Omán, se desarrolla otra manifestación frente a la embajada norteamericana, mientras en Yemen también han prendido los ánimos antiamericanas en protestas que ya han dejado 4 muertos y 34 heridos. Asimsimo, en Teherán cerca de 500 personas se manifestaron frente al edificio de la embajada de Suiza, que representa los intereses estadounidenses en Irán.

Assange: Reino Unido y EE.UU. prueban su medicina al bendecir el asedio de embajadas


"Al aceptar el asedio por parte de Reino Unido de la embajada de Ecuador en Londres, EE.UU. dio un aval tácito para el ataque a embajadas en todo el mundo", escribió inicialmente Assange en su cuenta oficial de la red social. Debido a la mala acogida que tuvo el mensaje entre sus seguidores, Assange, que permanece refugiado desde hace meses en la embajada de Ecuador para no ser extraditado a Suecia, se vio obligado a redactarlo dos veces y, después, incluso a borrarlo. La primera reformulación decía así: "Al aceptar EE.UU. la amenaza del Reino Unido de asaltar la embajada ecuatoriana en Londres, contribuyó a generalizar los ataques a las embajadas".

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