Treasury Admits It Underestimated Debt Needs, Predicts Ceiling Breach In 2012; $600 Billion More Debt In Second Half

via: ZeroHedge
By: Tyler Durden
July 30, 2012

Back on April 30, when the US Treasury, together with the TBAC chaired by Matt Zames (who as everyone knows is being groomed to take over JPMorgan after Jamie gracefully steps down) sat down put together its latest debt funding needs projection, we openly mocked the numbers when we said “Now obviously we are all for the US needing less debt, however we wonder: did the US discover some magical source of tax revenue: last we checked the companies with $100+ billion in cash were paying virtually zero taxes, and US workers were making less and less courtesy of more and more jobs being converted into temp jobs with lower wages, and less withheld tax as a result.” Sure enough, minutes ago the Treasury just admitted what we and our readers knew all along: in its quarterly Treasury refunding appetizer, it noted that during the “September 2012 quarter, Treasury expects to issue $276 billion in net marketable debt, assuming an end-of-September cash balance of $60 billion.  This borrowing estimate is $12 billion higher than announced in April 2012.  The increase is primarily due to lower receipts, higher outlays, redemptions of portfolio holdings by the Federal Reserve System, and higher issuances of State and Local Government securities.” In other words: if only it wasn’t for that pesky lack of revenue and excess spending our mocking would have been for nothing. Alas, it was spot on, and as a result instead of needing $253 billion in fiscal Q4, the US will need $272 billion (after having a $5 greater financing need in fiscal Q3, calendar Q1 as also expected).

Continue Reading At: ZeroHedge.com

Big Banks Continue To Game the System With Public Money, Aided By the Fed

via: JessesCrossRoadsCafe
July 28, 2012

“The suspicions that the system is rigged in favor of the largest banks and their elites, so they play by their own set of rules to the disfavor of the taxpayers who funded their bailout, are true. 

It really happened. These suspicions are valid.”

Neil Barofsky, TARP Inspector General
The Fed is not the solution; the Fed is a creature of the biggest banks, and very much a part of the problem.

Once again we hear a lone voice of common sense, and reason for reform, in this case Sarah Bloom Raskin, speak out forcefully for reform.

You may recall ‘The Warning’ which featured Brooksley Born, who sounded the alarm about the growing dangers of the unregulated derivatives market during the Clinton Administration. And who was thwarted and bullied by team Greenspan-Summers-Geithner.

And you might remember how the Wall Street Banks used the NY Fed and the Treasury’s Tim Geithner to block the reforms proposed by the FDIC’s Sheila Bair.

Continue Reading At: JessesCrossRoadsCafe.com

The Rothschilds and Rockefellers Join Forces in Multi-Billion Dollar Deal

via: VigilantCitizen
July 7, 2012

If you needed proof the world elite is a tightly-knit group geared on dynasties and bloodlines, well here’s a pretty good one. The most powerful family of Europe, the Rothschilds have joined forces with the most powerful family of America, the Rockefellers, in a super-multi-billion-dollar deal that greatly expands the influence of both families. For centuries, the Rothschilds and the Rockefellers silently shaped the world as we know it, influencing political decisions, the economy and even wars between nations. As Mayer Amschel Rothschild stated: “Give me control of a nation’s money and I care not who makes her laws.” 

Both families are now major actors in the creation a New World Order and this deal is a great example of how these ancient dynasties are merging into a single, world-dominating unit. As David Rockefeller stated in his memoirs:

“Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”

-David Rockefeller, “Memoirs of David Rockefeller” p.405

Here’s an article on the mega-deal between the two most powerful families on Earth.

Transatlantic alliance between Rothschilds and Rockefellers for wealth management

As if they weren’t already well-connected enough, the world’s two greatest dynasties joined forces yesterday as Europe’s Rothschild banking clan bought a stake in the Rockefeller group’s wealth and asset management business to gain a foothold in the US.

The patriarchs of the two families – 96-year-old David Rockefeller and Jacob Rothschild, 76 – cemented a five-decade acquaintance as the younger man’s London-based £2bn RIT Capital investment trust bought a 37 per cent stake in the American’s business.

In addition to bringing together the two doyens, the deal will considerably expand the vast networks of both families.

To give a taste: Lord Rothschild’s son, Nat Rothschild, is a well-known entrepreneur with stakes in a range of companies such as Genel, the Kurdistan-focused oil producer run by former BP chief executive Tony Hayward and Bumi, the Indonesian mining group. He was also linked with George Osborne and Peter Mandelson at a notorious party on an oligarch’s yacht off Corfu in 2008.

Lord Rothschild’s niece Kate is married to Ben Goldsmith, brother of Conservative MP Zac Goldsmith and Jemima Khan and son of the late billionaire business tycoon Sir James Goldsmith.

On the Rockefeller side, for starters, David’s granddaughter Ariana is a successful fashion designer who married the construction heir Matthew Bucklin in 2010. And let’s not forget the founders who, although no longer with us, live on through their business creations.

The Rockefeller family’s journey to vast riches began in 1870 when John D Rockefeller set up Standard Oil and went on establish a fortune that is widely regarded to be the largest in US history. The family’s wealth management operation was set up in 1882 to manage that fortune.

The Rothschild dynasty goes back even further, to when Mayer Amschel Rothschild started a business in Frankfurt towards the end of the 18th century. It helped finance Britain’s war against Napoleon in the 19th century and raised funds for a loan allowing the British government to buy the Suez canal.

The Rothschilds bought the stake in Rockefeller from French banking group Société Générale for an undisclosed sum. SocGen, which has owned the stake since 2008, appointed a new head of private banking in March, replacing Daniel Truchi with Jean-François Mazaud.

SocGen’s sale of the stake comes as banks around the world sell peripheral assets to reduce their risks and strengthen their capital bases in order to meet tough regulations aimed at preventing a repeat of the 2008 financial crisis.

Commenting on the deal, Mr Rockeller said: “Lord Rothschild and I have known each other for five decades. The connection between our two families remains very strong. I am delighted to welcome Jacob and RIT as shareholders.”

- Source: The Independent

Continue Reading At: VigilantCitizen.com

The History Of The Federal Reserve System

via: ZeroHedge
by: Tyler Durden
July 6, 2012

For better or mostly worse, the Federal Reserve has been governing the monetary system of the United States since 1914. The visual history below maps the rise of the Fed from its origins as a relatively minor institution, often controlled by Presidents and The Treasury to its supposedly independent and self-aware current position as, arguably, the most powerful entity in the world. And because we always like to be ‘fair-and-balanced’ we juxtapose this clarifying truth of the maniacal growth of the Fed’s balance sheet and shift from passive to hyperactive – highlighting every major macro-economic and political event on the way – with G. Edward Griffin’s 1994 speech on ‘The Creature From Jekyll Island’.

Continue Reading At: ZeroHedge.com 

McEwen Mining Holding 33% of Treasury in Gold and Silver

SilverDoctors
Sunday, March 18, 2012

Rob McEwen’s McEwen Mining (the product of the recent US Gold/ Mindera Andes merger) has responded to our friend Eric Sprott’s call to mining companies to believe in their own products by saving in bullion rather than dollars by holding 1/3rd of its $79 million treasury in gold and silver bullion.  

McEwen, who turned Goldcorp into an amazing success using similar practices, is calling for $200 silver and $5,000 gold by 2015.

As Sprott’s plan to hold company assets in bullion rather than cash or treasuries continues to gain momentum, it will be interesting to see whether the producers can eventually withhold sufficient physical silver from the market to wrestle the control of the market from the paper markets that currently wags the dog.

McEwen Mining, the product of the January fusion of US Gold and Minera Andes, said on Thursday its San Jose mine in Argentina produced 1.45-million ounces of silver and 20 934 oz of gold in the fourth quarter.

The TSX- and NYSE-listed firm also said it held around one-third of its $78.8-million treasury in bullion, betting that prices will rise.
CEO Rob McEwen followed a similar practice when he headed up Canada’s Goldcorp, and repeatedly forecast that gold prices would hit $5 000/oz by the middle of the decade, and silver $200/oz.

Last year, Canadian fund manager Eric Sprott called on silver producers to hold some of their treasuries in the metal itself

McEwen Mining said it expected San Jose, which US-based Hochschild Mining owns 51% of, to produce 5.7-million ounces of silver and 85 000 oz of gold in 2012.

Source: SilverDoctors