American dollar stumbles

[Fransisco]

"You can do all the pretty graphs you like, but in reality many of the policies of the previous governments affect the next governments situation more than their own."

You know who else inherited a government from Bush?

[URL="http://en.wikipedia.org/wiki/Rick_Perry"]Rick Perry[/URL]

[Fransisco]

Oh and guess what else Obama inherited from Bush? A triple A credit rating. (Just sayin)

[cottonpicken]

Im in babylon right now in a small corner named
mandalay.

Amazing how oblivious people are to a currency
crisis.

I explain our currency is now worth more,and
they call me a liar.

A mile wide and an inch deep.

[BTOfarmallll]

RideHer2010 pull yer head outta yer Ass. The President always has & always will be a Puppet fer Thee Elite. This is what happened. Theres going to be a war on terror which is no real enemy, but its a way for the Government to take over the American People. 9/11 was done by some people in our own Government and the Banking Cartel to perpetuate the fear of the American people into suboardinating themselves into anything the Government wants them to do, & to create this endless War on Terror, thats what its about.......com/embed/9LUFAKyxy5Q" frameborder="0" allowfullscreen></iframe>

<iframe width="425" height="349" src="http://www.youtube.com/embed/Rdwsy0IWlb8" frameborder="0" allowfullscreen></iframe>

[TOM4CWB]

Italy 'to default' but Spain may 'just' escape

On Wednesday Silvio Berlusconi told parliament that Italy's economy was "solid" Continue reading the main story


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Debt-laden Italy is likely to default, but Spain might just avoid it, according to the British think tank, the Centre for Economics and Business Research.

With the countries weighed down by debt, the think tank modelled "good" and "bad" economic scenarios for both.

It found that Italy will not avoid default unless it sees an unlikely big jump in economic growth.

However, it said, "there is a real chance that Spain may avoid default".

Even though Italy has managed to run tight budgets, and has vowed to eliminate its deficit by 2014, the economy needs a significant boost in growth.

But its economy grew by just 0.1% in the first quarter of 2011 and further growth is expected to remain sluggish.

On Wednesday, Italian Prime Minister Silvio Berlusconi addressed parliament, saying the economy was "strong" and the nation's banks "solvent".

But many economists believe that the eurozone's third largest economy risks being engulfed in the debt crisis.

In a report published on Thursday, the CEBR calculated that Italy's debt would rise from 128% of annual output to 150% by 2017 if bond yields stay above the current 6% and growth remains stagnant.

"Even if the cost of borrowing goes back down to 4%, the growth rate is so anaemic that we see the debt-GDP ratio remaining at 123% in 2018," said Doug McWilliams, the CEBR's chief executive.

The conditions in Spain are better because its debt is much lower. Even under the "bad" scenario, Madrid's debt ratio would climb to no higher than 75% of national output.

"Fingers crossed but there is a real chance that Spain may avoid default and debt restructuring, unless it gets dragged down by contagion," Mr McWilliams said.

"Realistically, Italy is bound to default, but Spain may just get away without having to do so," he said.
http://www.bbc.co.uk/news/business-14396557



http://news.sky.com/home/business/article/16043146

1:26am UK, Friday August 05, 2011

Almost £50bn has been wiped off the value of the FTSE as the EU president warned the eurozone crisis is spreading.

The listing for the UK's top 100 companies closed at 5393, down 191 points or 3.43%, taking £49.8bn from its value.

It is the biggest fall on the FTSE for more than two years.

Since last Friday morning, £124.97bn, or 8.17%, has been wiped off the value of the FTSE 100.

Big fallers included satellite communications firm Inmarsat - collapsing 19.31% despite record profits, Lloyds Banking Group down 10.19% and mining group Vedanta's 9.39% decline.

US stocks plunged sharply to new 2011 lows as worries about Europe's sovereign debt problems and the weak US economy stoked fears of a double-dip recession.

When the New York Stock Exchange closed the Dow Jones industrial average was down 4.31% - its worst day since the 2008 financial crisis. The broader S&P 500 was off 4.8% and the tech-based Nasdaq composite 5.08% lower.


Even gold is susceptible. People are pretty much getting out of everything, except cash and bonds.

Kingsview Financial head trader and strategist at Matt Zeman

"We are now in correction mode," Standard & Poor chief investment strategist Sam Stovall said.

"We could have another couple of weeks to go before it bottoms."

The Cac40 in France closed almost 4% down, Germany's Dax fell 3.4% and Italy's main index was down more than 5.1%.

Gold climbed before dropping nearly 1% - a swing of around $43 in New York, as investors seek out new safe havens.

"Even gold is susceptible. People are pretty much getting out of everything, except cash and bonds," Kingsview Financial head trader and strategist Matt Zeman said.

In a letter to European Union leaders, Jose Manuel Barroso said: "Whatever the factors behind the lack of success, it is clear that we are no longer managing a crisis just in the euro area periphery."

He called for a re-assessment of all elements of the eurozone's current and future bailout funds.

And he told them the eurozone needs to convince markets that it can respond to the debt crisis.


FTSE 100 Three-Month Chart


There are concerns about the Spanish and Italian economies.

Speaking on Sky News, the chief executive of the Centre for Economics and Business Research (CEBR) Doug McWilliams said: "(Italian Prime Minister Silvio) Berlusconi hasn't solved the problem of the Italian economy, which has now become uncompetitive with the Euro."

Greece has already been bailed out twice by the eurozone countries and Ireland has also required extra money to help rescue its precarious financial situation.

The CEBR said that, with Italy's economy being twice as big as Greece, Portugal and the Ireland combined, a bailout may be unaffordable for the eurozone.

Sky business reporter Tadhg Enright said investors are concerned about the dwindling global economic recovery: "We saw earlier this week crisis just barely averted when a looming default by the US government on its debt was averted.

"But that shone a spotlight on the state of its economy, growth in the second quarter of the year was far less than expectations."

[BTOfarmallll]

Geithner: No Risk U.S. Will Ever Lose AAA Credit Rating

[riders2010]

Bush inheritted Clinton's economy which was flying, Bush's bullshit policy is now being chewed on by Obama, he was a total f'up, filling his own and cheney's friends pockets, I am sure the democrats have the same thing going on but maybe in different industry. The people do not have control of the government there or here, big oil, big business dictates, unless that changes we are headed for a screwing by them.

When the finance minister announces no to taxes for oil companies do you think he is just doing that on his own, no, the string has been pulled. Like I said previously I'd sure like to see bank accounts of gov officials checked during and after they leave office.

What things are you guys on the far right proposing governments cut? I keep hearing the words but no specifics? Should taxation and what kind be implemented, changed or not to get us out of this mess? All I hear is one side accusing the other in generalities but no specifics?

Is the wheat board issue really gonna solve the economy? solve the farm problems out there? REALLY?

Are you yourself prepared to take a cut in standard of living to solve the debt crisis?

[jensend]

for the last thirty years the us govt (and others) have chosen between restraint and borrowing. now the choice is between restraint (cutting) and taxation. given the state of their economy the only choice is cutting. if they make the wrong cuts they tank their economy in less than a year. if they don't cut they're toast in six months. the debt ceiling will become irrelevant because borrowing costs will be so high.

[BTOfarmallll]

Rideher2010 I feel sorry for yer Parents that raised you. How did they ever get anything through yer Fat Skull. Its a known Fact the less you Tax something the more Money yous will take in. I hate Bush also, but the Republicans were in power when Clinton was President, so he gets no credit for the Economy doing so well in that time frame. Taxes are Illegal & there should be no such word that exists in todays Society. Why do yous think our Fore Fathers came to the once Great Land of America years & years ago??? FREEDOM!!!! Show Me The Law That Says We Need To Pay Income Tax. Article 1, Section 8 in the US Constitution says that the US Government should coin its own Money, Not some Private Banking Cartel!!!!!!!!!

Real American Heroes:

http://www.paynoincometax.