Sunday, June 29, 2008

Kunstler’s recent comments on $500 barrel oil : Penetration


My new novel of the post-oil future, World Made By Hand, is available at all booksellers.

     The telling moment last week was Robert Hirsch's appearance on the CNBC morning "Squawkbox" financial show in which he proposed the probability of $500-a-barrel oil within "a three-to-five-year time-frame." Squawkhead Becky Quick was clearly nonplussed by the stolid Mr. Hirsch, author of a (then)-startling 2005 US Dept of Energy report (since referred to as the Hirsch Report and buried by the Secretary of Energy) that warned of dire effects on the American way of life as the Peak Oil predicament gained traction.
     Perhaps more reality-challenged was the uber-idiot Larry Kudlow on CNBC's night-time money show, who kept repeating the mantra "drill, drill drill" when presented with signs that something other than "oil speculators" was driving up the price and creating global scarcity. These idiots always return to the shibboleth that "there's plenty of oil out there." What they don't get is that even while the world is enjoying the all time peak of production (somewhere around 85-million barrels-a-day), that same world is demanding at least 86-million barrels -- so even though there's more oil than ever, there's not enough. And the gap is only bound to get bigger.
     The difference between what's available and what's demanded is being felt by poor countries and poor people in richer countries. Third world nations lacking their own oil are simply dropping out of the bidding, and the lower classes in the US are having to choose between buying gasoline and velveeta. The floods in the corn belt will surely aggravate the problem here in the USA. Lunch breaks may soon be a thing of the past for WalMart Associates. Maybe they'll just play video games on their cell phones in the parking lot to allay their hunger.
      Meanwhile the notion that drilling drilling drilling offshore the US and up in Alaska will solve this problem shows how incredibly misinformed the news media itself is. The probability is next to zero that anything found off California or Florida would even fractionally offset ongoing depletion in the handful of old, established super-giant fields that the world gets most of it oil from. By the way, I support the idea of drilling in Alaska's ANWAR reserve because I think it can be done in a sanitary way and, more importantly, it would get the idiot cornucopian right-wing assholes to finally shut up about it -- before they discover that it contains less than half a year's oil supply for the US at current rates of use.
      Also on the "meanwhile" front, the OPEC meeting Sunday at Jeddah, Saudi Arabia, was simply a desperate dodge, a mummery, a kabuki theater of powerlessness. Once again, the Saudis are pretending that they can increase their production -- in essence, pretending that they actually have some power in the game. As Jeffrey Brown has pointed out on THEOILDRUM.COM, the Kingdom will still show a steady three-year decline over their 2005 production rates even if they're able to goose current output as much as they say they will in 2008.
    All this reality content is beginning to penetrate the collective consciousness in the US, but the result is mostly panic or paralyzed disbelief rather than any set of intelligent responses. For example, I got a call from one of Katie Couric's producers at CBS news on Friday. Somehow, they had noticed that oil prices were becoming a problem in America. They called me for a comment. The scary part was they were clearly treating the issue as a "lifestyle" story. Did I think more suburbanites would move downtown? And would that be a good thing...?  They have no fucking clue how broadly and deeply these dynamics will affect the life of this nation, or even our ability to remain a nation. Also, by the way, this demonstrates how the nightly network news has become the equivalent of the old "women's pages" of the daily newspapers.
     The parallel universe of the financial world is showing the strain of all this oil anxiety -- since, after all, oil is the primary resource for running industrial economies. It has been some time since the banker boyz embarked on their fateful venture to alchemize a new mutant strain of investment instruments to replace the tired old stocks and bonds which represented the hope for production of surplus wealth from industrial activity -- now mooted by the oil story. The idea of the mutant investments was to produce wealth with no real wealth-producing activity. This old trick, formerly known as Ponzi finance or a "pyramid scheme," was naturally self-limiting, and in a way that would prove ultimately very destructive to society as a whole. In fact, it has fatally undermined the legitimacy of the entire financial system, and a state of comprehensive nausea has set in as we all witness the dissolving foundation of the US economy under a tsunami of debt that will never be repaid.
      The markets seem to know this, the more vocal playerz are squawking more about it, some banks are issuing frightening "duck-and-cover" warnings, using horror movie phrases such as "...worse than the Great Depression of the 1930s..." and the general public is sinking into the quicksand of bankruptcy, repossession, and ruin. I haven't been to any lawn parties in the Hamptons this year, but I imagine that eczematous anxiety rashes are competing with suntans and Versace separates out there this year. Really, we're right back where we were last year about this time, only worse. Oil has doubled, food is outasight, the levees have broken, the people who run things are shitting their pants, and everybody is waiting for a whole lotta other shoes to drop.

IMF begins general examination of US financial system

Der Spiegel wrote that the IMF had "informed" Federal Reserve chairman Ben Bernanke of plans that would have been unheard of in the past: a general examination of the US financial system. The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program is to be carried out in the US.

This, Der Spiegel wrote, "is nothing less than an X-ray of the entire US financial system", adding that "no Fed chief in US history has been forced to submit to the kind of humiliation that Ben Bernanke is facing".

The fact that the IMF is knocking on the very doors of its parents and waving legal papers about who lost the house, the car and the kids will, if the past is anything to go by, be buried in the US by pom-pom waving on CNBC telling all what a great time it is to buy.

But the news that the US Fed has now lost its last vestige of credibility did not end with the German report.

The Telegraph from London weighed in, following the Royal Bank of Scotland's statement last week (also lost on the US public) that it was time to head for the crags, and reported Barclays Capital's closely watched Global Outlook analysis that said US headline inflation would hit 5.5% by August and the Fed would have to raise interest rates six times by the end of next year to prevent a wage spiral.

If the Fed hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it," the report found. "They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility." Schiff says USD INX 50

US Stock Market Crash Predicted US Stock Market Crash – predicted?

Friday, June 27, 2008

Wednesday, June 25, 2008

Oil Industry shifts to alternative fuel
A majority of members of the Rockefeller family called on Exxon Mobil Corp. on Wednesday to look beyond the oil and gas industry and invest in renewable energy.

Descendents of John D. Rockefeller, who founded Exxon predecessor company Standard Oil, say they're concerned that the company will quickly fall behind its peers, which tout their investments in biofuels and wind energy.
(CNN) -- Oil giant Exxon Mobil Corp. plans to sell its company-owned gas stations, saying they aren't profitable enough even with gasoline selling at $4 per gallon.

The 2,220 stations make up about 1/5 of the Exxon and Mobil stations in the United States.

The nation's largest oil company, which earned nearly $41 billion last year, says it will sell more than 2,000 stations over the next few years.

"The fuels marketing sector is a very challenging market," ExxonMobil spokesperson Prem Nair said, adding that the company is feeling particular pressure from hypermarkets like Wal-Mart that sell gasoline.


Tuesday, June 24, 2008

Is everything spinning out of control

WASHINGTON - Is everything spinning out of control?

Midwestern levees are bursting. Polar bears are adrift. Gas prices are skyrocketing. Home values are abysmal. Air fares, college tuition and health care border on unaffordable. Wars without end rage in Iraq, Afghanistan and against terrorism.

Friday, June 20, 2008

FX a haven to investors wounded by credit crunch

FX a haven to investors wounded by credit crunch

By Simon Falush - Analysis

LONDON (Reuters) - Financial markets may be going through their toughest time in decades but foreign exchange markets are booming as investors, wary of ailing credit markets, look to the asset class as a way of driving returns.

Investors stung by heavy losses in credit markets are diverting resources into FX trading, pushing trading volumes ever higher toward a daily average of $4 trillion that could be reached by the end of the year.

Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and Citigroup (C.N: Quote, Profile, Research, Stock Buzz) have suffered a combined loss of $42.5 billion in writedowns as a result of exposure to poor quality credit assets, but growing FX revenues have taken some of the sting out of these losses.

Both Citi and Merrill Lynch posted record currency revenues in the first quarter with Merrill Lynch doubling its income compared to the same period last year.


And while banks may be wary about lending money to investors looking to trade credit-related instruments there are no such qualms about involvement in foreign exchange, helping maintain hedge fund activity in the area strong.

"Banks may not be willing to lend to hedge funds margined against credit instruments but customers are not finding themselves credit constrained (when looking to borrow to funds for) FX trading," said Justyn Trenner, principal of research and advisory analytics group ClientKnowledge.

"There is evidence that customers are picking and choosing who they'll trade their foreign exchange through. The boot has moved onto the other foot. But the underlying interest in the asset class has not diminished in any way," Trenner added.

Investors have moved out of the carry trade where they borrow low yielding currencies like the yen to fund purchases of higher yielding assets, as volatility increased.

One-week implied volatility on dollar/yen currency options was trading around 5.0 percent in June, when the carry trade was at full tilt, and increased to as high as 18.40 percent in March, though it has subsequently retreated to 11.75 percent.

Low volatility is good for the carry trade as investors are more comfortable in the relatively risky position when markets are calm than when there are sharp, unpredictable moves.

However, investors are still selectively buying into high yielding currencies that they think will deliver strong growth.

The Australian dollar this week surged to 24-year highs against the U.S. dollar, and with volatility rising, flows in and out of these strategies is more rapid, again increasing volumes.

The Bank for International Settlements said FX trading volumes average $3.2 trillion a day. Trenner at ClientKnowledge says this figure will likely soar to $4 trillion per day by the end of the year.


Sharp moves in the currency market that have seen the dollar retreat by nearly 8 percent versus the euro this year have forced companies and funds to think about their exposure to these fluctuations.

Lisa Scott Smith, managing director of global currency at Millenium Global Investments, said the sharp moves in currencies had highlighted the large potential risks that companies and funds with exposure to different currencies face, bolstering the amount of hedging that companies engage in.

"We are seeing increasing demand from institutional players, pension funds, corporations who are realizing given these dislocations in markets that there are currency issues," she said.

A benefit of foreign exchange that these investors are looking to exploit, is that it can generate positive returns when other assets are suffering.

When markets turn south investors can buy into low-yielding currencies like the yen and Swiss franc which tend to rise at times of heightened risk aversion.

"It has a low correlation with other asset classes and investors have seen strategies drive solid returns in difficult conditions," said Thanos Papasavas, head of currency management at Investec Asset Management.

To meet the demand that these potential returns are generating, banks are reallocating staff from areas which have seen demand ebb, like structured credit, into foreign exchange.

Societe Generale reorganized its credit and FX operations in April to bolster its currency capabilities ID:nL0336801.


However while the investment environment is important, improvements in trading technology is also key as it enables a wider range of investors to trade faster and more frequently.

Michael Spencer, chief executive of ICAP (IAP.L: Quote, Profile, Research, Stock Buzz), the world's largest interdealer broker, which saw strong growth in forex revenues help drive its pretax profits rise to 330.2 million pounds ($645.9 million) this week, said the growth of electronic trading and advances in technology have been key in driving growth.

"The average transaction time on EBS platform was 150 milliseconds per transaction 18 months ago, its mow 6 milliseconds. The mere speeding up of the platform itself allows the algorithmic trading platforms to speed up by themselves and has contributed to volume growth."

He added that increased globalization and the growth of emerging markets has also boosted the volumes.

"We trade currencies on EBS which a dozen years ago which we wouldn't have thought possible a dozen years ago....Currencies like rouble, renmibi, Korean won...these are non-trivial currencies, they will tend to drive volume growth."

FX: The new global asset class

FX: The new global asset class


Many investors think "FX" is a TV Channel or a nickname for movie effects. FX is short for FOREX or Foreign Exchange. Many do not understand that FX is the most powerful market in the world. With over $3.2 Trillion exchanged daily, it is the largest and most liquid financial market in the world.

But the question remains: Is anyone making money? Take James Simons; he is in the Guinness Book of World Records for the single highest salary ever, in 2007 earning over $2.8 Billion. His salary has been increasing year after year, earning a mere $1.5 Billion in 2005. He develops quantitative black box systems for the FX market, and other markets, and trades them through a hedge fund called Renaissance Technologies.

FXCM, a startup in 1999, recently has breached the 100,000 account barrier. Trading over $700 Million in customer funds, and earning well over $1 Billion in revenue in 2007, FXCM was started with seed capital of only $500,000.

FX Sol, an NJ based broker, recently received $100M in venture funding from Francisco Partners in a recapitalization round. Clearly, the FX market is exploding as investors look for investment alternatives (FX as an asset class) and are learning the hard lesson how a weak US Dollar can cause inflation. When one is not hedged, and the domestic currency is declining, it's a true investment loss although it won't reflect as losses in a bank account, it will simply decrease the buying power that dollars have.

But certainly it's not only the brokers who are reaping in this bonanza – they are offering clients access to the markets and taking a risk free profit. The clients are bearing most of the risks, and many are reaping the rewards. TriGlobal FX, a FX management company, has had 1 losing month in the past 4 years. Not bad, considering ballooning Wall Street losses in Subprimes and in stocks.

Not every FX account is a success, and there are FX horror stories. For example, due to the unregulated nature of FX it has attracted a large amount of unprofessional and downright frauds. Authorities are targeting these groups and it is becoming less common, however they have given FX a bad name without reason. This can be avoided by working with registered or otherwise credible entities.

Elite E Services is working now with Ztrade FX, an IB whose model is to rebate money back to clients for trading. This is for clients who want to trade their own accounts. If clients wish, their accounts can be handled by a professional money manager for them, and pay a percentage the profit for commission only. This fair profit based commission is called a 'performance fee' and is debited from client accounts monthly based on new high watermarks of monthly profits. That means if there is a loss the loss needs to be made back up before calculating any more fees.

For more information, please contact Frank Franze at or call (203) 966 5118 or contact Joe Gelet at (646) 837-0059.

Wednesday, June 18, 2008

RBS issues global stock and credit crash alert

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned.

Monday, June 16, 2008

Saudis pump oil to $140

Could cause rifts in OPEC cartel...
Oil surges to new record high near $140 barrel...

Flooding in the American Midwest threatens crops
NEWHALL, Iowa: Here, in some of the best soil in the world, the stunted stalks of Dave Timmerman's newly planted corn are wilting in what sometimes look more like rice paddies than the plains, the sunshine glinting off of pools of collected water. Although time is running out, he has yet to plant all of his soybean crop because the waterlogged soil cannot support his footsteps, much less heavy machinery.

Thursday, June 12, 2008 released, expert advisor system verification service for fx black box systems

PRESS RELEASE: released, expert advisor system verification service for fx black box systems


Automated trading is growing exponentially, as traders discover the obvious benefits of having a fully automated system that trades without human intervention. The current retail standard for making automated systems is the Meta Trader 4 (MT) platform, and the systems are called "Expert Advisors." There are many other similar platforms, but only MT has become so popular that it is being used by over 100 brokers worldwide, in addition to be popular with clients.

The MetaTrader 4 Client Terminal has a user-friendly front-end trading interface. It provides technical analysis, charting and Expert Advisors to help you develop your own trading strategies.

It is also distinguished for its wide range of functionalities that accommodate the demands of all traders.

Elite E Services (EES), a registered CTA with the CFTC and NFA Member, develops these automated trade robots on behalf of customers, in addition to offering them for lease or purchase. Joe Gelet, the President of EES, has a lot of experience not only developing but evaluating automated systems used by leading hedge funds and CTAs worldwide. He states, "There is no reason for a trader not to use this totally free service. There are many systems out there, it is hard to determine which are really producing good results. In this business, results are really all that matters, so we are asking traders to put their system to the test."

Boston Technologies (BT) develops technology plug-in for the MT platform, primarily for other brokers, traders, and technology providers in the automated FX space. George Popescu, CEO of Boston Technologies said in a statement "Web-technology today is cheap enough not to justify offering such a valuable system for free to the community. This service can only bring benefits and should improve the overall industry. Therefore Boston Technologies is ready to help develop EA Results and maintain it as needed."

Boston Technologies and Elite E Services have therefore collaborated on this joint project called "EA Results" with the website . EA Results is a secure database system that will collect information from trading systems, direct from the MT terminal FTP function. Traders can upload their account statements automatically to EA Results server, which will display them publicly for all to view. It is not possible to forge or cheat the system, so systems traders can officially display their results for all to view. Since the technology is using MT's built in FTP function, it will not affect trading, and can be used from any terminal. In fact, it is not required that the trader run an EA, they could upload any account statement in MT.

Anyone looking for an FX system lately is overwhelmed with systems. It seems there are more systems than there are FX trading accounts. As a testament to that statement, EES has collected over 10,000 EA's in a few years working with MT4; most of them are useless from a trading perspective. They all have some interesting features, but in this market the only thing that matters is results. That is why traders develop systems, to trade well, not for any other reason. Commonly, groups of traders will exchange account statements and back test reports, but there is no central secure database of results tracking for the EA community: until now.

FX Systems are beginning to mature as a method of trading, yet how do we know what systems are really working and which ones are not? Of course, past performance does not indicate future results, but at least we can verify the past performance as valid.

Searching Google for FX, it seems there are literally thousands of automated systems making consistent returns with almost no risk. But the reality, based on broker provided statistics, do not match this false impression. How does one know that a website is honest? Forums such as and others have created a way for clients to share their experiences and have done a lot towards exposing frauds like FX Unigma and others, which were complete frauds. However, it is often questionable who the forum posters are, if they represent other interests, and much debate exists on the credibility of the posters. There isn't any easy way to prove if a system is performing or not.

Systems Traders and Developers should have no reason not to upload their account statement to EA Results, and it is free for them to do so. It is important to offer this service free, so there are no excuses, and no conflicts. EA Results may charge in the future for additional services such as auditing or capital allocation services, but we will never charge system vendors for uploading their systems. For the developers, we are doing this for very clear reasons: to find a system that has proven results.

EA Results is NOT a Strategy Runner or an FX Auto. It is for Meta Trader, and trader's who know MT know that you don't need any automation service to use EA's. However, the problem with MT is it is difficult to verify results because until now, there has been no 3rd party verification service for the MT platform. We want to give traders the chance to prove their systems results.

Some statistics claim that 95% of all FX traders lose, however Todd Crosland, CEO of Interbank FX, claims that in the last 24 months, 49% of their accounts are positive. It is not easy to prove this or other claims by other brokers, because they do not run an open book. EA Results is an independent, non-broker account statement auditor, in that we are collecting account statements and saving them so they cannot be edited, modified, or deleted.

We encourage all Expert Advisor traders and developers to upload their account statements for any reason. In addition, if you have capital to invest in trading systems, you should contact us so you are eligible to use systems that are proven once they establish a track record. We will offer a capital allocation service once we have a pool of proven systems. Please visit EA Results at:

EA Results is not an investment advisory service, and does not recommend investing in any systems. Use at your own risk. Past performance does not indicate future results.


For more information, contact Elite E Services at:

2620 Regatta Drive Suite 102

Las Vegas, NV




Wednesday, June 11, 2008

Corn Jumps to Record as U.S. Cuts Output Estimate on Heavy Rain

une 11 (Bloomberg) -- Corn rose for a sixth day to a record in Chicago, leading gains in soybeans, wheat and rice, after the U.S. cut its output estimate by 3.2 percent from a May forecast.

Output will be 11.735 billion bushels, compared with 12.125 billion forecast on May 9, the U.S. Department of Agriculture said yesterday in a report. The estimate is 10 percent smaller than last year. Inventories in the world's biggest producer may drop to the lowest since 1996 by Aug. 31, 2009, the USDA said.

Corn prices have climbed 50 percent this year, heading for a fourth straight annual gain, as demand surged for livestock feed and biofuels. Global inventories are forecast to fall to a 24- year low, the U.S. government said. The price of wheat, rice and soybeans also reached records this year after adverse weather curbed global output, reducing stockpiles amid rising demand.

``No one can stop the corn price's run-up now,'' Hiroyuki Kikukawa, general manager of research at IDO Securities Co., said today from Tokyo. ``Now we have heavy rains in the Midwest and will see a summer heat wave in July and August. We may see the USDA cut further its output estimate next month.''

Corn for July delivery rose as much as 13.25 cents, or 2 percent, to $6.865 a bushel in after-hours trading on the Chicago Board of Trade and was at $6.835 at 11:59 a.m. in London. The new crop December contract climbed as high as to $7.12 after closing above $7 yesterday for the first time.

Shrinking Stockpiles

Estimated U.S. inventories of 673 million bushels before the 2009 harvest, down 53 percent from a year earlier, would represent 5.4 percent of expected annual consumption, or 20 days of use. That's down from 40 days estimated this year and the lowest since 1996 when reserves were projected to last 18 days.

The government cut its yield forecast for corn by 3.2 percent to 148.9 bushels an acre, from 153.9 predicted last month and 151.1 for last year's crop. The reduction reflects ``persistent heavy rainfall across the Corn Belt,'' the USDA said. The crop will be harvested by November.

About 60 percent of the corn crop in the U.S., the largest exporter of the grain, was in good or excellent condition as of June 8, down from 63 percent a week earlier, and 77 percent a year earlier, the USDA said June 9 in a report. An estimated 89 percent of the corn crop had emerged from the ground as of June 8, compared with 98 percent a year ago and the five-year average of 89 percent, the USDA said.

Soybeans Gain

Rainfall across the Midwest was as much as four times normal during the past 60 days, National Weather Service data showed. Midwest fields had as much as 12 inches (30 centimeters) of rain in the past week, it showed. Some areas may get another five inches in the next four days.

Soybeans for July delivery added as much as 22 cents, or 1.5 percent, to $14.685 a bushel, and last traded at $14.63. The contract rose 7.4 percent this month, on track for the third straight monthly gain.

Soybean inventories on Aug. 31 are expected to be 125 million bushels, down from last month's forecast of 145 million and a record 574 million last year, the USDA said. Reserves on Aug. 31, 2009, are expected to be 175 million bushels, down from 185 million forecast last month even with the USDA predicting a 20 percent jump in U.S. production.

China's soybean imports, the world's largest, rose 20 percent to 13.7 million metric tons in the first five months of the year, the customs office said today, citing preliminary data.

EU Corn

Wheat for July delivery was up 8 cents, or 1 percent, at $8 a bushel after gaining 2.6 percent yesterday on speculation that record corn prices may force livestock producers to use more feed wheat.

Still, wheat futures are down 41 percent from a record $13.495 on Feb. 27 as farmers increased seeding of the grain.

``Movements in the corn market are likely to have a growing influence on wheat prices over the second half of 2008,'' Rabobank Group said today in a report.

The European Union almost trebled corn imports in the 2007- 08 season to 13.7 million tons, exceeding forecasts, the French National Crops Office said today.

Milling wheat for November delivery on Euronext in Paris rose 6.25 euros, or 3.3 percent, to 198.50 euros ($308) a ton.

Rice for July delivery rose 53 cents, or 2.7 percent, to $19.95 per 100 pounds after dropping by the daily limit of 50 cents yesterday. Rice is up 82 percent from a year earlier, reaching a record $25.07 on April 24, after some exporters curbed exports to ensure local supplies.

To contact the reporter on this story: Jae Hur in Singapore at

Last Updated: June 11, 2008 08:10 EDT

Monday, June 9, 2008

NY Fed chief urges global bank framework

Banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework with "appropriate requirements for capital and liquidity", according to Timothy Geithner, president of the Federal Reserve Bank of New York.

Writing in Monday's Financial Times, Mr Geithner, a key US policymaker throughout the credit crisis and one of the main architects of the rescue of Bear Stearns, says that the US Federal Reserve should play a "central role" in the new regulatory framework, working closely with supervisors in the US and round the world.

Saturday, June 7, 2008

US Citizens banned from French Banks

From UrbanSurvival:

Trouble Ahead?  Bank on it!

An email from a reader got my attention:

Hi George, reading your site on daily basis; thanks for the common sense and the unfiltered info. Here's my question: recently I was in Europe and I tried opening an account in a European bank (in Paris to be exact), the manager looked straight into my eyes and said that they have a directive from high above not to open accounts for US citizens and actually they have asked every us citizen who has an account with them to leave the bank (banks name is ***), very disappointed I created a havoc about discrimination, human rights etc (with bankers? what was I thinking?), then I lectured my wife (she's French) about the freedoms in our country and rotten values in Europe; a week later I'm in LA in my bank (Bank of ******) where my friend is the manager and he told me that they've just asked all euro pen citizens to clear the bank; plain and simple, to take their money and get lost; what do you thing is going on? something is in works.

Yes.  It's warring currencies!  What have we been telling you?  $139 oil is just the start!  First we hy6perinflate and then we collapse.  Quite simple.  The monetarists mantra "Crack-up Boom" comes to mind, eh?  For recent pointers, instead of going to Europe, next time try Argentina or still,  Zimbabwe where the currency has become unusable.  You see, that's the beauty of digidollars.  Just slide the decimal point and keep on printing....

Oil breaks record $139

Job Losses and Surge in Oil Spread Gloom on Economy...
'Serious Concern'...
Medvedev Says USA 'Economic Egoism' Has Contributed to Global 'Crisis'...


Japan Urges Effort to Combat 'Abnormal' Prices...

Gold Surges Most in Six Months...

Tuesday, June 3, 2008

Southern California buy one house get a second one free

In Escondido: Buy one (house), get one free.

In a sign of how difficult it is to sell new homes in Southern California right now, a San Diego developer is offering a "buy one, get one free" deal, pairing million-dollar homes with less expensive homes.

"We thought, 'Why does it just have to be on Pop Tarts and restaurants? Why not buy one home, get one free,'" Dawn Berry of Michael Crews Development told 10 News in San Diego.

More: "Michael Crews Development is offering new, 2000-square foot cityscape row-homes worth $400,000 in Escondido for free -- if you buy one Royal View Estate home in San Pasqual Valley starting at $1.6 million.  'You know it's a straight-up legit deal; no prices have been increased, there are no hidden costs. Michael is just giving away a free home for people that buy at Royal View,' said Berry."

"Adam Rossman of Michael Crews Development added, 'People have been coming in saying, 'How can you do this?' Well, it's our way of dealing with current market conditions to move some inventory.' "

Your thoughts? Comments? E-mail story tips to
Photo Credit: Michael Crews Development

Does that make me an idiot that I don’t know about mortgages and banks?

She says she didn't know better and the money-men took advantage of her naivety and ignorance.

"Does that make me an idiot that I don't know about mortgages and banks? That's what you have those for."

"It would be disastrous when I sit down and look at the numbers. I'm hesitant to sit down and do it."