Weekly News Wrap-Up 11.30.12

By Greg Hunter’s USAWatchdog.com 

The two big issues, this week, are the U.S. debt deal and the Middle East.  The debt deal that everyone thinks was in the bag looks like it is nowhere near a done deal.  It all comes down to which parties’ base will be hurt the most.  For the Republicans, it’s tax increases.  In this case, they want to close loopholes and raise a trillion bucks over 10 years.  It’s not a lot of money, but I guess it’s a start.  Even things like the mortgage interest deduction are on the table.  They call this revenue, but it is really confiscation.  This is where it gets difficult.  Nobody wants to pay more in taxes.  In this case, realtors say it will hurt housing.  On the other side, it’s cuts to social programs.  The Democrats, so far, haven’t put together significant cuts to anything–so much for the “balanced approach.”  Neither party will utter a word about the ongoing banker bailouts that are open-ended at a rate of $40 billion per month—surprise!!!  If we do hit this so-called “Fiscal Cliff” and there is no real deal, expect the Fed to go on a money printing rampage.  Even the Fed does not want to see mandatory spending cuts and tax increases on the first day of 2013.   

Also, expect another cut to the U.S. credit rating, and that means interest rates could spike.  It is hard working yourself out of debt, but with the political environment in Washington D.C., it’s almost impossible.  It looks to me like both parties are more worried about getting the blame for the “Fiscal Cliff” than avoiding it.  Oh, and by the way, the U.S. will hit the $16.4 trillion debt ceiling sometime in the last week of December.  Now, that’s a real “Fiscal Cliff.”   

The Middle East is another mess, and this mess could spark war.  Remember the cease-fire that was reached last week between the Israelis and Hamas?  It has been widely reported that Hamas leaders admit to Iran re-arming them.  That does not sound like to me that these two sides are headed for the peace table.  It is only a matter of time before fighting breaks out again.  Now, the U.N. has voted to make Palestine one step closer to becoming a country.  The U.N. voted overwhelmingly to grant Palestinians non-member observer state status.  It doesn’t make them a country, but it does upgrade them in the eyes of most of the world.  The U.S. and Israel voted “NO” along with just seven other countries.  The U.S. says it will make negotiations between Israel and the Palestinians much harder.  The Palestinians scored a very big victory on the world stage.  

And remember Egypt’s historic elections?  That country is in upheaval, once again, because of a power grab by new President Mohammad Morsi.  Tens of thousands have hit the streets to protest Morsi wanting to become an elected dictator.  Those folks want a Constitution with checks and balances much like we have here in the U.S.  Can you blame them? 

Finally, Warren Buffett wants Jamie Dimon as the new Treasury Secretary.  Buffett (whose Berkshire Hathaway was basically bailed out by taxpayers) wants another bailout crony put in office.  I wrote a post, this week, that chronicled the missteps and alleged fraud by JPMorgan Chase in which Dimon is CEO.  Just in the last year alone, the bank has paid hundreds of millions of dollars to settle fraud charges with the SEC.  It is still in the middle of the enormous LIBOR interest rate rigging scandal (along with about a dozen other global banks) and lost billions in risky trades at its London office.  Remember, JP Morgan has FDIC insurance, and Mr. Dimon appeared not to know much about it until the losses popped up.  This is the guy the U.S. should have running the Treasury Department?  I don’t get it.   

Join Greg Hunter for analysis of these stories and more in the Weekly News Wrap-Up.     

Comments
  1. Rev. William Joslin

    Great report Greg! On a side note I’ve been thinking about some of the things that are coming sooner than later, I believe unemployment next year will skyrocket. With many companies cutting full time employees to part time status, many of those workers will have to try to find second jobs in an already limited job market just to try to make ends meet. And I’m sure a lot of people will get laid off. What happens when food stamps and unemployment benefits are cut off? This country is in very serious trouble and so many of the masses can’t even see it. One question for you Greg, what is your personal opinion, is all this an orchestrated collapse by design? It sure seems that way to me. You couldn’t destroy a nation any better if you tried.

    • Greg

      Rev.
      I think you are right about unemployment going up, up, up in 2013. I don’t know whether it’s by design or by hubris but collapse it will in the current trajectory.
      Thank you for weighing in and for your support.
      Greg

  2. Craig

    Hi Greg,
    Great, concise report!
    There is no mystery at all about any move government makes if you just follow the money! WE may think they’re a bunch of raving lunatics for the actions they take, but if you put it in the perspective that everything they do is part of THEIR agenda and like a chess master, when they make moves that we think are crazy, to them it’s another move towards check-mate, and we’re the pawns.

    • Greg

      Good stuff Craig and Art!
      Greg

  3. Art Barnes

    Has anyone at all thought that maybe going over the so-called “fiscal cliff” maybe not that bad for America? Its going bad to worse everyday anyway so why not do what our great esteemed and most learned leaders put in place a year or so ago when they structured this deal. Wasn’t it Washington insiders and our politicians who “kicked the can” to get past the election who decided that automatic cuts would take place as a type of judgment if agreements couldn’t be reached. They must have gave it some thought that America would survive it, and, guess what, we will. But Greg, lets get real now, a deal is going to be brokered at the last minute with photo ops all around and everybody claiming victory. Never forget we have the best politicians money can buy and they never fail keep up their standards.

  4. JoeJustJoe

    I believe what happens in world markets will affect U.S. markets more than the fiscal cliff thingy….altho everyone will probably use the fiscal cliff thingy as an excuse when (not if) the U.S. stock market goes into full collapse starting as early as today. FXP (the ETF for shorting China) is nearing a short term confirmed bottom here, we already saw National Bank of Greece (NBG) fall out of bed…and now IRE (national Irish bank) is setup for complete implosion. Yes, people who have long term capital gains will sell into the end of the year because of higher tax consequences next year. But again, the fiscal cliff won’t be the reason for the market collpse short term.

    • Greg

      Thank you Joe and Andy.
      Greg

  5. AndyB

    Greg: in response to your first commentor, all readers should Google the marxist Cloward-Piven strategy and determine in their own mind whether or not our financial demise has been planned, and incrementally implemented.

  6. Michael

    Another great report Greg. Now for my take on what is really going on.
    It is very obvious what the Obama regime is engineering.
    First, they want the fiscal cliff to transpire. Why, because they control the media and have set up the talking points to blame on the Republicans which the gullible masses will listen to as demonstrated by the recent election. This will enable the Democrats to take over the house in 2014 and thus finalizing the transformation of America.

    Second, the bigger macro play in progress is the obvious collapsing of the American dollar as a currency. Why, this will enable the government to create a new electronic currency in which there will be no physical currency to exchange. All economic transactions will be done electronically and controlled by the government. This will result in complete and total control of the economy by the government.
    For those of you who are acquiring and possesing precious metals such as gold and silver, you can guarantee that private ownership of precious metals will be outlawed and possesion will be punished with draconian force.
    Welcome to Hope and Change. Forward?

    • Greg

      Thank you Michael. I still think you are better with AU and AG than without it.
      Greg

  7. frosty

    Greg,

    Concerning Mr.Buffett and Mr.Dimon; what’s not to get?

    There is really no reason why what is in the economic self interest of Mr.Buffett should also be in the best interest of the US. The man is simply nominating Mr.Dimon because he knows that a man of that character, with his hands in the public till, would be a great asset for mitigating, or even eliminating, his personal business risks.

    Perhaps, because you are a good man, you don’t get the philosophy that rationalizes decisions in which values based on economic self interest take precedence over moral ones, but that philosophy seems quite prevalent today. One ancient sage put it this way..”For the love of money is the root of all evil..”

    I hope you put away the news for a couple of days, and really enjoy a good weekend.

    • Greg

      Thank you Frosty. Your analysis is always spot-on and appreciated.
      Greg

  8. Johann

    Who owns JP Morgan Chase? 800 Trillion dollar swindle, did I hear you right?

  9. Tom

    I guess Jamie Dimon at Treasury makes sense since Bernie Madoff isn’t available.

    • Greg

      Tom,
      I am laughing out loud as I answer you. Priceless sharp short comment!!
      Greg

  10. Brian

    Hi Greg!

    Not to be overly negative, but given the direction that the so called captains of the financial ship are going I’d have to say it is really over………..these guys are doing nothing more than buying as much time as they can, they know the ship is going down, they want to keep us out on the deck listening to the band for as long as possible, while they fill the life boats with the contents of their closets, the jewelry and whatever else is not nailed down to the floor!

    If we do not wake up fast and demand that the rule of law be upheld and that these @$$holes who are openly stealing in front of our eyes be formally dealt with in a court of law, this “great american experiment” will have a very very very very bad ending.

    and thats the way I see it.

    • Greg

      Brian,
      The best think you can do right now is protect your assets and your family. The country will rebuild and folks like you will be needed. You are most certainly NOT being “overly negative.” You are coming to the only conclusion any thinking person can come to in looking at the enormous debt and dysfunction in the government.

  11. Mickey

    Great wrap up, Greg!

    Off topic, but here at home the NRC is again falling down on the job, the U.S. has a huge problem with many nuclear plants, Oyster Creek in NJ, some in the mid west & one in FL that is costing rate payers a ton of money even through they will not produce any power due to all sorts of equipment being down, damaged from floods, or just to costly for the share holders to make money if they did the needed upgrades to ensure the publics safety, this is no joke, yet is remains no where on the MSM head lines. People can find vital info at http://www.fairewinds.com the Thanksgiving Pod Cast, Nov 21,2012.

    It funny how money dictates how corporations think of the safety of the public, thay don’t! If it is going to cut into profits, damn the people just hide what you can & leave it to some else to fix the problems, well these problems could leave a lot of people dead & the land a waste land for 1000 of years, no wonder we hear nothing about Japan from the MSM or the UN who has been asked to bring the world together to help solve the ticking time bomb that could blow up if Mother Nature desides to act up again! I hope you will do a story on it, fairewinds.com has been on top from day one & has many people who know what is going on inside the NRC & the whole nuclear field.

    Well the dance in DC go on & we the people will be the ones who get the short end of the stick, again!
    Have a great week end, thanks for all your hard work!

    • Greg

      Thank you Mickey for the comment and content that people need to hear!!
      Greg

  12. Mitch Bupp

    Dimon should be in jail. If these banksters were regular people they would already been convicted and sentenced.

    The day is lost and corruption still reigns supreme. Remember Ken Cuccnelli who as VA AG gave the banksters a pass on the tens of thousands of fraudulent documents … now wants to run for VA governor … political payoff anyone?

  13. James Lanier

    I am one of over two-million that will lose their UI by 12/29/12. The Federal Government and my state of NC has been promoting the decrease of unemployed over the past few months. I, personally, hope to have a stable job before my deadline. I believe that unemployment figures will rise after December 2012 when all of the holiday temps will be shaved from the payroll.

    • Greg

      Hang in there James. Don’t give up.
      Greg

  14. chris1

    4.11.
    2011 Fed. tax revenue is around 2.5 T and we spend 3.8 T.
    Real debt of the USA is 200 TRILLION. Prof. L. Kotlikoff .Do a vid on that.
    Thanks for all your hard work.

    • Greg

      Chris1,
      Scary numbers indeed. I think professor Kotlikoff says it’s not something like $220 trillion. Still, enormous amount of debt and commitments. Thank you for your comment and support..
      Greg

  15. BOB D

    It’s booming in Seattle , we are like part of Asia out here. Maybe the old power places like New York and London didn’t have a good business model.
    Maybe the old farts in DC tied there future to the old western banking families.
    Maybe the western bankers are lying ,killers and the whole world knows 9-11 was a inside job of some kind.
    Maybe the western bankers can’t add.
    Maybe Romney being ordered to the White House, was his chance to save himself and sons from treason.
    Maybe the Fed. is dead and the Treasury is all we need after all.

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