Today's date Aygust 4th, 2011
Space Weather News for August 4,
SOLAR ACTIVITY: For the third day in a row, sunspot 1261 has unleashed a significant M-class solar flare. The latest blast at 0357 UT on August 4th registered M9.3 on the Richter Scale of Flares, almost crossing the threshold into X-territory (X-flares are the most powerful kind). Also, at least two coronal mass ejections are en route to Earth, and they could provoke mild to moderate geomagnetic storms when they arrive on August 4th through 6th. High-latitude sky watchers should be alert for auroras. Check http://spaceweather.com for details and updates.
3:00 a.m I'm llistenng to the radio to a money expert, who sells gold as his business.
He is emphatically saying that the government is going to confiscate gold just like they did after the 1929 stock market crash.
He is saying that people should get out of paper because the value of the dollar contnues to go down. He says, either buy gold for the next while, OR buy things ofo value, just get out of paper. He also says that silver will not be confiscated.
What he wants people to buy is things that will have a value no matter what - such as food, land to grow food on, machinery to help with the growth of food, anything that has value that you can trade for other trhings you will need later, like bullets. tpo;et [a[er.. ise upir o,agaomatopm tp fgire pit [ep[;e; wo;; meed wjem tjeu dp't have cash. Bartering at some point will be great if you have somethin g to trade with them. Casjj wo;; jave p va;ie = becaise it's paper.
So the key is: GET OUT OF PAPER.
Now he is talking about how the Elite want to control people. People want to feel good so they will offer you anything that feels good, and people will go for whatever they feell will make them feel good. The elite feel that 90A% of the people don't have the intelligence to put off what makes them feel good in order to choose what is really good for them.
He admits that we all have waknesses and make mistakes, but we can make the right choices to do what is good for us as a society. It'll never be perfect, but when people work together, its always be4tter than an indivdual would do.
We can create our society the way we want it to be. All we want is to make our own choices. We want to be safe, that our courts are just, that we hve the money to take care of our family.
He is talkikng about the 1,000 years of peace that we were promised i the Bible. That kind of peace starts within the self - it doesn't come from outside.
Because 90% of the people only think abou tthemselves, so social chaos will happen and there will be shortages of the very things they want to feel good. So we need to plan ahead for that and separate outselves from the people who only want to feel good, and do what is 'good for us'.
It has nothing to do with religion, creed, or color - its all about what's in your heart and taking care of those you love. In a society we have to take care of each other the best we can.
Start with what you need now to make sure you and yours are safe from what is coming soon.
So ... what is this about another DOME of heat going on starting in Texas and Oklahoma. ???
Two weeks ago we had a DOME of heat that went across the north - now its in the south.
This is not GLOBAL WARMIKNG - this is a WEATHER WAR. Just exactly who is doing this we can't say, bu tone might look at various HAARP installations - there are at least 12 countries that have them. With HAARP - the ionosphere is heated and they can aim that heat where they want it to happen.
What is happening now is that people are dying and what they aren't talkikng about is that cattle are dying, wheat, crops, hay to feed cattle are being destroyed.
Texas is in its 33rd day in a row of temperatures over 100 degrees. Babies, elderly, small children, the ill, cannot tolerate temperatures like that.
4 a.m. EUROPE is in big trouble. They are all falling apart economically speaking than the United states is, but don't take your eyes off the prize. We've been distracted fora couple months over the raising of the Debt limit - and ltos of things have been happening while we've been worrying about the Scoial Security checks being sent out on August 2nd.
We are past that now, so we need to bring our focus back to whats more immportant. they are predicting HYPER INFLATION.
If you haven't already bout food and water ahead - you'd better do it now because the prices are going to get 10 times higher over the coming months.
It's too alte to start growing food this year, but you can still get seeds for next year.
The commodity marekts have suddenly taken ff significantly higher. Most people don't watch the prices of food in the commodity markets, but as soon as the Debt limit was signed, they prices of commodities soared.
tjeu are expecting the price of silver to explode faster than the price of gold, which will all go significantly higher.
The whole point is, spend your mooney NOW on what you n eed for later in the year. It will never be cheaper than it isi now. Buy as much as you can afford and put it in your pantry.
We had tornados, flooding,Fukikshima radiation scare, which is ongoing. People have been distracted. Now we have the heat which is itotally debilitating, which means if you have A-C your electric bill is going to sky rocket too.
But what you are going to need later this year is food to feed your famililes. Get that NOW.
We are not going to be the only coun try in trouble. All of europe is going to go down this path with us.
the new thing in Congress is a SUPER CONGRESS. What is that? A committe of 12 or 13 people are going to decide what laws are going to be passed and everyone will go along with everything they say. We will have no say in what they do now.
What we have just seen hapen with the raising of the Debt limit was a screen to hide the fact that the UN (United Nations) is going to take over the power of the world. They want to control everything - especially in scarece comoddities, like wheat, corn, etc.
Enttlement programs like Social Security ane medicare are going to be messed with, as well as food resources. Hyper inflation is on the way.
Crude oil is on the way down - it has droped from $110 to $90 and on thewa y down to $80 per barrel. That soun ds good, doesn't it? It'a a ploy - they will sudenly turn that around and all of a sudden itll be back up over the $110 we were at before. You can know right now, all of a sudden it'll be at $115 or $120 per barrel and there we will be again. It's a game they play.
If people, alll of a sudden can'nt get food, or medicine, they won't live long - the elderly are extremely vulnerable.
The radio show is talkng about crime going rampant at the same time.
Elenin, Nibiru, Planet X, Nemesis is back in the news. People won't be telling people about what is coming, and that wll be massive earthquakes, the pole shift, and continents might even be realigned. The atmosp[here will even change because massive volcanos will be going off at the same time, along with LARGE solar flares from the sun. land will be scorched. Ships will be lost, it will be overheated.
You can look up all that stuff on youtube.com or go to the lihks I've provided in previoius blogs.for articles I've written as well.
you can use stie:greatdreams.com on gppgle.com and use any search term you want.
Jere is an example:
DOWN 513 POINTS
NEW YORK -- Stocks plunged Thursday in the worst one-day drop in more than two years, as investors absorbed fears that the American economy could enter a new recession.
A week's worth of declines in the stock market erupted into an outright plunge as a stream of bad news kept coming: The American economy is barely growing; the federal government is preparing to slash spending; and a growing crisis in Europe increasingly threatens to send shock waves through the system.
Experts say investors have factored in a terrifying risk -- that the economy might begin to contract.
"With the policymakers out of bullets and the economy slowing, the market is re-pricing the possibility of a genuine double-dip recession," said John Richards, head of strategy at Royal Bank of Scotland in the Americas.
"It isn't like that's everybody's mainline scenario, and it doesn't have to be for markets to go down," he continued. "All you've done is increased the risk of the double dip from one-in-20 to one-in-five, or maybe one-in-three. That's enough to cause a major sell-off in a market like this."
The bad news started Friday, when the government announced the economy grew at an annual rate of just 0.85 percent in the first half of the year. Seen in relation to population growth, gross domestic product actually shrank during the first three months of the year.
Over the weekend, lawmakers in Washington struck a deal that suggested help would not be on the way. Instead of renewing economic stimulus programs, the debt ceiling deal enacted large spending cuts over the next decade, a program that many experts say could threaten economic progress.
A plan for fiscal tightening could hardly be coming at a worse time, as key economic indicators point to a weakening recovery. The Institute for Supply Management announced Monday that the manufacturing sector had barely grown at all in July. Consumer spending fell in June, the government announced Tuesday, for the first decline in nearly two years.
Much as the end of a real estate boom in Japan in the 1990s set that country up for a so-called lost decade, the sense seems to be taking hold that the United States may now be following suit.
"The realization is dawning on the world that the future of the United States is bleak, that what we have been seeing is what we got. It's not going to really get much better," said Allen Sinai, chief global economist at Decision Economics.
"Our situation is not unlike Japan's," he continued. "When that realization dawns on financial markets, you get a huge shift in sentiment. It's always extreme."
The gloomy situation at home got an unwelcome jolt from abroad on Thursday, as investors began to fear for the economic health of Italy. After an announcement by the European Central Bank made it seem that the monetary authority might not intervene to assist the economies of Italy and Spain, investors entered panic mode, causing the yields on Italian debt to shoot higher.
It was only the latest sign of the worsening crisis among countries that share the euro currency. With Greece mired in a fiscal disaster, experts fear a widespread loss of confidence among investors, a scenario that could raise the cost of borrowing for a group of weak nations -- and even push governments into default.
"The crisis has entered a self-fulfilling phase," said Biagio Lapolla, a rates strategist at Royal Bank of Scotland in London. "We're not talking anymore about a specific country's problem. We're talking about a euro-wide systemic crisis."
Interest rates on Italian debt rose to fresh highs as the Italian stock market plunged. Yields on 10-year Italian debt rose above 6.2 percent Thursday, as the difference between that rate and the rate of relatively safe German debt reached a new record.
Meanwhile, stocks in the U.S. were dropping. The Dow lost 513 points by the stock market's close.
Investors piled into safe-haven Treasury debt as they sold equities, pushing U.S. debt yields lower. The interest rate on the 10-year Treasury note plunged to 2.4 percent, a level not seen since last fall, Bloomberg data show.
All eyes are on Friday's unemployment report. The jobless rate, at 9.2 percent in June, has risen for three straight months, intensifying worries that the economy could slow to a stall.
"Fears the U.S. economy is headed for another recession have started to grow again," said Paul Dales, senior U.S. economist at Capital Economics. "It really started around the end of last week, when we had a really weak GDP report in the United States, and then it's just grown from that."
By Song Jung-a in Seoul and Telis Demos in New York
Friday 03.50 BST. Asian stocks tumbled as fears rose that the global economy may be heading for a recession with the European debt crisis spreading and the US economy slowing, enduring a heavy sell-off as investors shun risk after global central bankers failed to stem fears of rapidly slowing growth.
Following the biggest decline since the financial crisis for both the S&P 500 index and US Treasury yields, the MSCI Asia Pacific index dropped 3.8 per cent, down more than 10 per cent from its May peak. Japan’s Nikkei 225 Stock Average plunged 3.8 per cent to its lowest levels in more than four months. South Korea’s Kospi Composite index fell 3.5 per cent, plumbing its lowest intraday levels since March. Australia’s S&P/ASX 200 declined 3.8 per cent to a two-year low.
Investors are becoming increasingly concerned about the health of the global economy and worried that governments’ attempts to tackle fiscal difficulties – particularly in Europe as sovereign debt contagion spreads to Italy and Spain – will only exacerbate the slowdown.
“The past week’s market downdraft has been associated, above all, with growing evidence that the second-quarter global ‘soft patch’ is not giving way to a third quarter rebound as quickly as might have been hoped,” Barclays Capital said in a note to clients.
Investors are focusing on the US jobs report to gauge the state of the US economy. This week’s worldwide manufacturing and service sector surveys have shown waning activity and hopes are not high that Friday’s sentiment-setting US non-farm payrolls numbers will break the cycle of disappointing data.
“The US economy stands at the forefront of market concerns about growth. If the July employment report ratifies the view that the US recovery remains barely above stall speed, there is more selling to be done,” BarCap said.
In early Tokyo trading, the yen was moving upward again following heavy intervention on Thursday by Japanese authorities to drive down the yen from close to its post-war highs. It was trading at Y78.84 per US dollar compared to Y79.40 on Thursday. Against the euro it was at Y111.17 from Y111.27.
The South Korean won sank to a five-week low as fears of the global economy prompted foreign investors to pull funds from emerging markets. Top policymakers in Seoul are to hold an emerging meeting to discuss global economic and financial market situations.
In Sydney, the Australian dollar, which last week hit a near three-decade high against its US counterpart of just over US$1.1080, dropped heavily, falling as low as US$1.0438 on Friday as its six-day decline deepened. Investors were further unnerved after the Reserve Bank of Australia slashed its 2011 growth forecast for the nation to 2 per cent from its previous estimate of 3.25 per cent, blaming a slower-than-expected recovery in coal production after Queensland’s floods earlier this year, and weak consumer spending.
Measures of credit risk in Asia jumped the most in almost a year on Friday. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan rose 11.5 basis points to 135 basis points, according to Bloomberg.
Oil futures fell more than 1 per cent to about $85 a barrel in electronic trading on the New York Mercantile Exchange, having dropped more than 5 per cent on Thursday. Gold moved 0.2 per cent higher to $1650 per ounce in Asian trading, remaining close to its record highs.
In Tokyo, shares of exporters took a beating with Sony down 3.5 per cent and Toyota Motor off 3.6 per cent. Weak corporate earnings also hurt sentiment. Pioneer, a maker of car navigation systems and audio equipment, slid 4.3 per cent after reporting a 51 per cent drop in net profit in the quarter ended June 30. Nippon Sheet Glass tumbled 6 per cent after revealing that operating profit in the first quarter slumped 44 per cent. Amada Corp bucked the trend, rising 2.9 per cent. The metal-processing machine maker, along with Aozora Bank and Sony Financial Holdings, will be added to the Nikkei 225 benchmark index.
In Sydney, concerns about the global economy pounded resources stocks with BHP Billiton off 4.1 per cent and Fortescue Metals Group down 6 per cent. Sentiment deteriorated after the Reserve Bank of Australia cut its economic forecasts for this year while raising inflation projections. Energy producers were lower as oil prices went into retreat with Woodside Petroleum off 5 per cent, Santos down 5.4 per cent and Oil Search 2.9 per cent lower. Fears of a global recession also sapped banks and retailers, with Macquarie Group plunging 7.4 per cent. Top lender National Australia Bank was off 4.1 per cent and Westpac slid 5 per cent. Retailer David Jones fell 6.1 per cent.
In Seoul, chemical stocks and shipbuilders were hit hardest with SK Innovation off 6.4 per cent and Daewoo Shipbuilding & Marine Engineering 7.8 per cent lower. STX Offshore & Shipbuilding tumbled 8.5 per cent.
China’s Shanghai Composite index shed 2.3 per cent as commodity producers, property developers and banks slid on fears of a double-dip recession in the global economy. China Vanke, the nation’s biggest developer by market value, was down 1.8 per cent and Poly Real Estate Group lost 2.5 per cent. Industrial & Commercial Bank of China, the world’s biggest bank by market value, declined 1.7 per cent and China Merchants Bank was down 2.1 per cent. Jiangxi Copper fell 3.1 per cent and Aluminum Corp of China dropped 4.1 per cent.
Hong Kong’s Hang Seng index was off 4.8 per cent as Cheung Kong shed 7.3 per cent and Hutchison Whampoa, Asia’s largest conglomerate by market capitalisation, sank 8.3 per cent. Li & Fung, a leading supplier to Walmart of the US, slumped 4.8 per cent and Cnooc, China’s biggest offshore oil producer by market value, slid 5.9 per cent. Clothing company Esprit Holdings sank 6.3 per cent.
Taiwan’s Taiex index plunged 4.3 per cent with Chimei Innolux, the world’s third-largest flat panel maker by sales, falling by the maximum daily limit of 7 per cent after it reported worse than expected quarterly losses and cut its capex budget.
In Indonesia, the Jakarta Composite was down 5 per cent with stocks declining across the board.
The turmoil in the markets was kicked off by a steep fall in the yen after Tokyo intervened on Thursday to weaken the currency in the latest move by a central bank to combat the impact of market turmoil. The falls were accelerated by news that the European Central Bank would return to the market to buy bonds issued by troubled debtor nations.
In spite of the extra liquidity those moves provided to markets, traders refused to break their focus on economic hopes that have been lowered by a combination of western government austerity, slowing global industrial production and a looming US jobs report.
“The ECB’s action may have helped solve short-term funding concerns but it offers no real solution to the debt crisis or the economy. That is pushing Treasuries higher and higher, and equities are cratering,” said Christian Cooper, head of dollar derivatives at Jefferies.
In overnight trading, the FTSE All-World equity index fell by 4.2 per cent, to its lowest level since December, while crude oil gave up six months of gains. Many of the major indices were in technical corrections, off more than 10 per cent from their 2011 peaks, including the S&P 500 index.
Gold’s drop is perhaps the best
news of the day, if only because it
offers some counterpoint to a sharp
fall in inflation expectations. The
key measures of inflationary hopes,
the so-called “break-even” rates
measuring the spread between nominal
and inflation-protected bonds, are
falling a lot today. The one-year
break-even is at its lowest since
last October, and the two-year is at
its lowest since December. These
measures are critical to the Federal
Reserve’s thinking about a possible
“QE3” or “QE2.5”, given that it was
deflationary fears that they were
Notably, they are not below where they were before last August, when Ben Bernanke started the easing round in his Jackson Hole speech. The especially important five-year rate checked by the Fed has held up best of all, although it too is moving toward lows for the year. Michael Pond, strategist at Barclays Capital, also points out that some of the decline is due to a flight to safety in nominal bonds, rather than changing views of inflation.
But, given that Jackson Hole is looming again on August 26, and the direction of economic data, these will be watched closely in the days ahead.
The S&P 500 index, led lower by a sharp fall in energy shares, dropped more than it did the first trading day after Lehman’s collapse, 4.8 per cent. It was the steepest one-day drop since February 2009, before the market bottomed in March of that year. The CBOE Volatility index, known as the “Vix” fear gauge, jumped 35 per cent to near 32, its highest since last June.
The decline was spearheaded by energy shares, who were responding to a 6 per cent drop in crude oil prices. The twin central bank actions have driven up the value of the US dollar, putting sharp pressure on crude prices and industrial commodities, as well as the companies that rely on those prices to meet their earnings expectations.
The sell-off in energy groups dragged down Brazil’s Bovespa index by 5.7 per cent, which along with Argentina’s Merval, down 6.1 per cent, led all major indices. The FTSE Eurofirst 300 fell 3.3 per cent as resource groups in particular endured heavy selling.
“We’re looking at a very weak economy that’s already had so much stimulus,” said Adam Parker, US equity strategist at Morgan Stanley. “When you sell energy and materials, you’re saying the chances of recession are going up.”
The dollar was up 1.7 per cent on a trade-weighted basis, while the yen dropped 2.7 per cent to Y79.07.
Industrial commodities’ benchmark copper fell 2.1 per cent. The sharpest decline in energy was in US WTI crude, down 6.1 per cent to $86.42 a barrel, its lowest since February. Brent crude was down 5 per cent to $107.60 a barrel.
Only gold sat out the rally, having already hit a new record of $1,681. It was later trading at $1,645, down 1 per cent on the session, although part of its weakness may have been due to selling pressure from people funding margin positions in energy.
Core bond yields continued to soften, with the 10-year Treasury yield falling to its lowest point since October 2010, at 2.41 per cent, a decline of more than 20 basis points. It was the biggest one-day drop in yields since February 2009. Ten-year Bunds offered just 2.31 per cent, a dip of 10 basis points.
Meanwhile, short-term rates went negative, as measured by one-month Treasury bills, thanks in part to an announcement by Bank of New York Mellon that it would begin charging fees for cash deposits, sending hundreds of billions of dollars into the market. US two-year yields have fallen to 25 basis points, a record low.
The sell-off of assets has been very broad based. Fund flow data from Lipper revealed that in the week leading up Wednesday, investors withdrew money from all equity and taxable bond funds for the first time since December. Bond flows broke a streak of 32 weeks of inflows.
Many investors are now looking to central banks to pick up the stimulatory baton once again. As part of its package to weaken the yen, the Bank of Japan also announced more quantitative easing, increasing its asset buying programme from Y10,000bn to Y15,000bn.
Jean-Claude Trichet, ECB president, implied in the post-decision press conference that further debt purchases would be made but did not say whether this would include the likes of Italian paper, which has been under pressure of late. Rome’s bond yields vacillated sharply and benchmarks were now 6.15 per cent. The euro was down 1.4 per cent versus the dollar to trade at $1.4133 after the ECB said it would boost liquidity in the bloc.
In one relative bright spot, Madrid was able to sell €3.31bn of three and four-year paper, against a maximum target of €3.5bn. The result was relatively well received by the market and Spanish benchmark 10-year yields fell 15 basis points to 6.1 per cent, reflecting a slight easing of tensions for some in the sector. The general market malaise has seen yields return to 6.3 per cent, however.
Additional reporting by Jamie Chisholm in London, Robert Cookson in Hong Kong and Peter Smith in Sydney
Copyright The Financial Times Limited
2011. You may share using our article tools.
Please don't cut articles from FT.com and redis