The Federal Reserve isn't owned by the United States government it's an international business cartel, a privately owned business that generates over 80 billion dollars a year. More money than any company in America. They say that their objective is to reduce inflation, however, the lower interest is, the more people end up going bankrupt after retirement. When you have more bankruptcy, the banks are required to borrow more money from the federal reserve, increasing their profit margin. It seems to only logical that our monetary system should be controlled by a government agency rather than a privately owned business whose prime objective is to make money, and has financial motivation to cause bankruptcy and financial collapse....Markets have been manipulated for thirty years by and for the insiders, creating the too big to fail banks. Data is manipulated by the insiders, the regulators and government to demonstrate that all is well-nothing to see here. The last decade has seen nil interest rates and successive rounds of Quantitave Easing in an attempt to avoid deflation. This policy has totally failed. This leaves only painful policy options going forward. Orthodox economics which ignores the effect of money and debt on economics prescribes minus interest rates and counterfeit currencies. People who understand macro economics have identified the effects of debt, and understand that creating more debt is not a solution. World Debt is at 285% of GDP. Much of it is worthless and will never be paid back-so the action has to be write it off. Starting now...We know rates can't go up by more than 1% due to the quantum of personal debt in existence and the thin layer of surplus cash available for consumption every month.  More than 1% rate rise will signal defaults spiking. Any rise in rate will signal a slowdown in lending which is correlated highly with growth. This is a debt trap. Any inflation and monetary policy has nowhere to go. This is why there is a hang-up on whether to raise rates by 0.25%. Inflation watchers on one side (hawks) and growth seekers (doves). Frankly it's not worth bothering with, as the economy is stagnant at the zero lower bound whilst we operate in an environment of low growth capitalism. To solve the conundrum debt needs to see material reduction to create surplus cash flow, or wages need to increase - neither of which appear on the economic horizon within market fundamentalism.  Radical solutions would be debt jubilee with new controls on bank creation of endogenous money, regulate bank business models, and control spending / consumption to maintain 2% inflation, or increase wages significantly (with investors/ equity taking the hit - a move away from the conception of financial control and shareholder value to a stakeholder model) and drive a demand side response to deliver 'real' economic growth, not zero sum games we see today in stocks and real estate.

Romania has been rocked by political turmoil after parliament suspended President Traian Basescu from office, paving the way for a referendum on his future later this month. The procedure comes despite European Union and U.S. concerns over the status of democracy in the former communist nation.  Basescu was suspended from his job Saturday after 256 legislators voted in favor of a procedure that could lead to him being permanently removed from office. Only 114 lawmakers were against the action. Senate Speaker Crin Antonescu was appointed interim president.  Reacting to the vote, Basescu said he will now prepare for the July 29 referendum when Romanians will get a final say on his fate.  Basescu survived a similar vote in 2007. Analysts say he faces a tougher challenge this time, in part because of his declining popularity in a period of economic crisis in this nation of 19 million people.  Additionally, a recently adopted law requires only a simple majority of votes to push him out. Before, the requirements were more demanding. Romania's ruling center-left coalition says Basescu should leave office because he overstepped his authority and interfered in the government's work since his re-election in 2009.  In one of the latest stand-offs, a public quarrel emerged between the president and Prime Minister Victor Ponta over who should represent the country at a European Union summit. The Basescu has also been accused of alleged harsh remarks towards gypsies, also known as Roma, and disabled people, though the president has denied wrongdoing.  He told parliament before the suspension vote, the real reasons why the prime minister wants him to go is to increase his own power. Unlike in some European nations, Romania's president is chosen by popular vote and is in charge of foreign policy, the powerful intelligence services and the country’s defense policies.  The latest moves have prompted the U.S. and the EU to express worries over Romania's democratic credentials. The U.S. State Department said in a statement that it was concerned that developments in the country “threaten democratic checks and balances."  The EU's executive body, the European Commission, has also urged the government not to reduce the effectiveness of democratic principles and institutions, as the explained by commission spokesman Olivier Bailly.  "The rule of law, the democratic checks and balances and the independence of the judiciary are cornerstones of European democracy and indispensable for mutual trust within the European Union. Government policy and political action must respect these principles and values."
Bailly added that the latest developments threaten progress that was made in these areas since Romania joined the EU in 2007.  In addition to Basescu, Prime Minister Ponta has also come under opposition pressure to resign after an academic panel concluded that he copied a significant part of his doctoral thesis from other authors without proper attribution. Ponta, who calls the charges politically motivated, says they have been orchestrated by an adviser to Basescu.

MORE HOT AIR .... basic nothings...

BRUXELLES - "We affirm that it is imperative to break the vicious circle between banks and sovereigns,” said a summit statement.

Relief for Spain was accompanied by a pledge to begin purchases of Italian bonds using EU bailout funds to reduce Italy’s borrowing costs with a lighter set of conditions, based on meeting Brussels fiscal targets rather than intrusive IMF oversight.

A promise was also made to “examine the situation of the Irish financial sector” offering possible relief to Ireland by relieving the government balance sheet debt burden.

The Spanish bank bailout, to be agreed on 9 July, will initially use the euro’s European Financial Stability Facility (EFSF) before it is transferred into a new permanent fund later this year.

When the transfer takes place to the European Stability Mechanism the new loans will not be given seniority, giving extra security to Spain’s creditors.

After the ECB takes over eurozone banking supervision next year then the Spanish bailout will “very rapidly taken off balance sheet” and directly loaned to banks reducing Spain’s debt burden and borrowing costs....

More reaction to the summit: Ratings agency, Fitch, said the summit eases near-term pressure on euro sovereign ratings. Here's a taster of Fitch's statement: Our initial assessment of the summit of EU leaders held in Brussels this week is that it has exceeded expectations, although these were low, and marks a positive step that eases near-term pressure on eurozone sovereign ratings. ...Eurozone leaders' decision to create a 'single supervisory mechanism' for banks is an important step towards ensuring the long-run viability of the euro. Once such a mechanism has been created, the soon to be established European Stability Mechanism (ESM) could recapitalise banks directly. In Fitch's opinion, the creation of a single pan-eurozone bank supervisor with the power to intervene and, if necessary, directly capitalise banks could greatly improve the functioning of Economic and Monetary Union (EMU). The International Monetary Fund has commented on the decisions made at last night's summit. It "strongly welcomes" the decisions by the European Council, saying the steps will help to break the feedback loop between banks and sovereigns. It adds the decisions are "the right steps" towards completing monetary union. The Bundestag's lower house has also approved the ESM bailout fund. Reuters says that the lower house of the Bundestag has approved the fiscal compact as well .

Dublin and IMF

DUBLIN—After a week of declining offers of a bailout, Irish Finance Minister Brian Lenihan said Sunday he will recommend his government formally apply for an aid package from the European Union and the International Monetary Fund to shore up its public finances. Mr. Lenihan said on state broadcaster RTE Radio he will make the recommendation at a cabinet meeting later in the day. The finance minister said Ireland's banks have become "too big a problem for the country."
The government must now ensure that it is able to fund itself, that the economy remains stable and that Ireland can still borrow money in the financial markets, he added.
"So for all these reasons I will be recommending to the government that we should apply to a program and open formal negotiations," he said.
The step paves the way for the 16-country euro zone's second government bailout this year, following the emergency €110 billion ($150 billion) bailout plan for Greece in May.
Ireland will have to knuckle down on public spending to meet EU guidelines, which many worry will trigger protests like the ones seen in Greece. The Irish Congress of Trade Unions already has planned a protest Nov. 27 against more government cuts.
Irish bond investors could become better protected against default risk. But market watchers worry whether the latest blow to the prestige of the euro will intensify scrutiny on the finances of other fiscally weak governments, such as in Portugal or Spain.traian basescu,emil boc.vadim.radu tudor,imobiliare,restaurante,auto.ro,ziare.ro