Wednesday, July 6, 2011
The Trust & Verify Committee under the leadership of Dr. James David Manning will put Obama on trial for presenting false documents.
Veteran historian Webster Tarpley reports first hand on the US/NATO war on Libya....listen here (select the 2nd July podcast)
Prices for the two monetary metals have retraced all of their losses of recent weeks, with gold confidently back above US$1,500/oz and silver back in the shorts killing zone of US$35+/oz.
LONDON—Banks rolling over some of their Greek debt into new instruments may have to take impairment charges, Moody's Investors Service said Tuesday, in another setback for efforts to involve private bondholders in a new international bailout.
Rival rating firm Standard & Poor's Corp. on Monday rocked plans to involve the private sector in giving Greece more time to work out its fiscal problems by saying a proposal being promoted by French banks would likely put the country in "selective default."
Moody's still hasn't explicitly said the plan would result in a default. Tuesday it said it's "not a party to ongoing discussions on the Greek debt rollover," and that "any rating implications will be assessed through our published methodologies and definitions," only after authorities complete a plan.
The ratings firms' reaction to the French proposal is being regarded as a crucial element in whether it will proceed or not, because euro-zone and European Central Bank officials have repeatedly said they want a deal that doesn't result in Greece's getting a default rating. It could also affect the ECB's willingness to accept Greek bonds as collateral, which has been vital in keeping the Greek banking sector functioning during the crisis......read on
Moody's Investors Service cut its rating by one notch to Baa2 from Baa1 and said in a report that it was increasingly unlikely that Portugal would be able to borrow money on capital markets in 2013, as planned.
As a result, it said the country would probably require more financial aid — on top of the euro78 billion ($113 billion) bailout it received earlier this year — with private banks taking some losses.
The Portuguese government said in response that it is fully committed to meeting debt reduction targets and economic reforms tied to the bailout.
Portugal has been shut out of bond markets for long-term loans since April, when its government collapsed, heightening investors' concerns about its financial future.
Moody's said the European Union's insistence on involving private sector holders of Greek debt in a second bailout for the country indicates the same would happen for Portugal.
The agency's report is a blow to Portugal as it tries to distance itself from Greece, which has had to redouble painful austerity measures because it did not meet debt reduction targets.
Moody's said Portugal faces huge challenges in reducing spending and tax evasion, achieving economic growth and supporting the banking system and did not exclude another rating cut.
"A further downgrade could be triggered by a significant slippage in the execution of the government's fiscal consolidation program, a further downward revision of the country's economic growth prospects or an increased risk that further support requires private sector participation," Moody's said in its report.
In Lisbon, Portugal's new center-right coalition government said the downgrade showed the country faced an "adverse environment" in its debt-cutting efforts and that only by sticking to its promises to severely cut costs would it reverse its financial decline.......read on
This week Max Keiser and co-host, Stacy Herbert, report on 'no buyers' at the firesale of Greek national income producing assets and on Ben Bernanke as the Taliban of finance. In the second half of the show, Max talks to economist Yanis Varoufakis about the bailout and austerity packages for Greece.