Tuesday, March 27, 2012
"We will only know what the state wants us to know."Washington's relentless pursuit of WikiLeaks founder Julian Assange, and alleged whistle-blower Bradley Manning, is no secret. But the fate of the two men has got US journalists worried, that they too could soon find themselves behind bars.
This week, my congressional committee will hold a hearing to examine how the Federal Reserve bails out European banks, propping up spendthrift European governments in the process. Unfortunately this bailout comes at the expense of American citizens, in the form of higher prices and diminished savings down the road.
A good analysis of the Fed’s “swap” scheme first appeared in the Wall Street Journal back in December, in an article by Gerald O’Driscoll entitled, “The Federal Reserve’s Covert Bailout of Europe.” Essentially, beginning late last year the Fed provided U.S. dollars to the European Central Bank in exchange for Euros-- sometimes as much as $100 billion at a time. The ECB then funneled those dollars to European banks to provide liquidity and prevent crises from bank insolvencies. Since the currency swap was not technically a loan, the Fed did not have to embarrass itself by openly showing foreign bank debt on its balance sheet. The ECB meanwhile did not have to print new Euros and expose the true fragility of big European banks.
The entire purpose of this unholy arrangement was to obscure the truth: namely that the Fed was bailing out Europe with U.S. dollars.
A memo released by the House Financial Services subcommittee contradicts Corzine's claim, made under oath before Congress, in which the former New Jersey governor claimed, "I did not instruct anyone to lend customer funds to anyone."
$200 million dollars in customer funds, part of a $1.6 billion in client money that disappeared, was sent to MF Global's account with JP Morgan by direct order of Corzine, the email reveals.
Activist seeks declaration that promissory notes illegal - Says 31 billion promissory note not approved by parliament
An Irish activist on Monday launched a legal challenge against a 31 billion euro ($41 billion) promissory note issued by the government to bail out two collapsed banks, saying the scheme was not approved by parliament.
The move comes amid talks between the Irish government and the European Central Bank on a possible refinancing of the notes, used to bail out now-defunct Anglo Irish Bank and Irish Nationwide Building Society.
A 3.1 billion euro repayment on the notes is due by the end of the week, and the government is exploring ways to delay the payment after a groundswell of opposition.
A News Corporation company recruited a pay-TV "pirate" to post hacked details of a rival's secret codes online, BBC Panorama has found.
Lee Gibling set up a website in the late 1990s known as The House of Ill-Compute or Thoic.
He said NDS, a pay-TV smartcard maker, then funded expansion of the Thoic site and later had him distribute the set-top pay-TV codes of rival ITV Digital.
NDS denied this and said Thoic was only used to gather intelligence on hackers. It says Lee Gibling worked as a consultant who was used legitimately to inform on hackers.
ITV Digital was first launched as "On Digital" and was set up as a rival to News Corporation's Sky TV in 1998. But the widespread availability of the secret codes meant ITV Digital's services could be accessed for free by pirates. The company went bust in 2002.
Chinese Business Media Cautions Japanese Bond Bubble Is Ready To Burst, Anticipates 40% Yen Devaluation
Submitted by Tyler Durden
It is a fact that when it comes to the oddly resilient Japanese hyperlevered economic model, the bodies of those screaming for the end of the JGB bubble litter the sides of central planning's tungsten brick road. Yet in the aftermath of last month's stunning surge in the country's trade deficit, this, and much more may soon be finally ending. Because as Caixin's Andy Xie writes "The day of reckoning for the yen is not distant. Japanese companies are struggling with profitability. It only gets worse from here. When a major company goes bankrupt, this may change the prevailing psychology. A weak yen consensus will emerge then." As for the bubble pop, it will be a sudden pop, not the 30 year deflationary whimper Mrs. Watanabe has gotten so used to: "Yen devaluation is likely to unfold quickly. A financial bubble doesn't burst slowly. When it occurs, it just pops. The odds are that yen devaluation will occur over days. Only a large and sudden devaluation can keep the JGB yield low. Otherwise, the devaluation expectation will trigger a sharp rise in the JGB yield. The resulting worries over the government's solvency could lead to a collapse of the JGB market." It gets worse: "Of course, the government will collapse with the JGB market." And once Japan falls, the rest of the world follows, says Xie, which is why he is now actively encouraging China, and all other Japanese trade partners of the world's rapidly declining 3rd largest economy to take precautions for when this day comes... soon.