Max Keiser’s ‘thing of beauty looms’ as UK unraveling points to budget cuts [UPDATED]

Stacy Summary: This one is for Mike2liverpool.  Right, now I have to go find that “thing of beauty” video of Max for your entertainment. 

“The probability of a real sterling crisis is around one in three, and the probability of major tax hikes and cuts in public spending is roughly one in one,” the Harvard University professor says.

Update:

Indiana is one of five states — along with Arizona, California, Mississippi and Pennsylvania — bracing for possible shutdowns this week as time runs out for lawmakers to close billion-dollar gaps in their fiscal 2010 budgets.

Stacy – this might be the best thing to happen for these states.

61 comments on “Max Keiser’s ‘thing of beauty looms’ as UK unraveling points to budget cuts [UPDATED]
  1. Fibon1123 says:

    Government-imposed coercive force should ensure one, I don’t know how they work out there probabilities, sounds like green s***t to me.

  2. Mother Earth says:

    Great! Yet Gold goes AAAAAAAaaaaaaarhg.. but like in the Pink Foyd song ‘Comfortably Numb’ :-(

  3. Youri Carma says:

    Here an example of what I predicted the mainstream media would gonna do namely invent shoots cause there aren’t any! How do you Invent shoots yourself?

    For example: Economy better than we expected and we expected the worst of the worst. Or if the freefall gets a promile point less steep into the canyon they are the first to wave their flags around, for notin.

    Home-Price Declines in 20 U.S. Cities Eased in April (Bloomberg) http://tinyurl.com/nhoeq6

    Pace of home price declines slows in April (Reuters) http://tinyurl.com/nfdofk

  4. klaos says:

    even better!

    U.S. June Auto-Sales Rate May Top 10 Million in First for 2009

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKluo9BMBRcU

    We made it! Crisis solved. O-Bam-A O-Bam-A O-Bam-A O-Bam-A O-Bam-A O-Bam-A O-Bam-A O-Bam-A

  5. Gerry says:

    @■Sterling crisis looms as Brown takes UK economy into trash heap of history

    Do I detect a note of disapproval over at Bloomies?

  6. Phil says:

    OT: WS Markets
    Amazing that the market is even still moving IMO.
    It must be clear to even the dumbest investors out there that they cannot trust the valuation of anything out there.
    Are these stock buys/sells purely day-traders and gamblers or what ?

    The Dendreon story is just a more “exposed” example of what goes on generally IMO.

    And they STILL HAVE NOT arrested a SINGLE NAKED SHORTER yet !

    Don’t worry about auditing the FED … audit the WHOLE SYSTEM IMO !

  7. Mike/Liverpool says:

    Let It Be
    Let it Be

    ;)
    Mike

  8. Brandon says:

    The 10th amendment and the Audit the FED movement are growing in the US. We need to audit the Bank of England too.

  9. Mike/Liverpool says:

    Mother
    I don’t think Gold will take off till we see inflation, let alone Hyper inflation……………might even fall mean time.

    Mike

  10. frances snoot says:

    http://www.brookings.edu/papers/2009/06_iran_strategy.aspx

    Here is the link to a paper on proposed US policy towards Iran published by the Brookings Institute, cited on the Alex Jones site (originally posted on Blacklisted News.) It is interesting. The best way to “go to the source” is to listen in at think-tanks, cfr publications, Brezinski blurps (thanks Phil)…go to the source as Stacy advised! After all, we the taxpayers are treated as children at best and livestock at worst by the elite and their minions.

  11. Mother Earth says:

    @mike Thanks. I applied an old solution : When dispondent, go to the beach..

  12. frances snoot says:

    This from Chapter 6 of the paper I linked from the Jone’s site:

    The Saban Center at The Brookings Institution

    “Because the Iranian regime is widely disliked
    by many Iranians, the most obvious and pal-
    atable method of bringing about its demise would
    be to help foster a popular revolution along the
    lines of the “velvet revolutions” that toppled many
    communist governments in eastern europe be-
    ginning in 1989. For many proponents of regime
    change, it seems self-evident that the United States
    should encourage the Iranian people to take pow-
    er in their own name, and that this would be the
    most legitimate method of regime change. after
    all, what Iranian or foreigner could object to help-
    ing the Iranian people fulfill their own desires?

    Moreover, Iran’s own history would seem to sug-
    gest that such an event is plausible. During the
    1906 constitutional Movement, during the late
    1930s, arguably during the 1950s, and again dur-
    ing the 1978 iranian revolution, coalitions of
    intellectuals, students, peasants, bazaari mer-
    chants, Marxists, constitutionalists, and clerics
    mobilized against an unpopular regime. in both
    1906 and 1978, the revolutionaries secured the
    support of much of the populace and, in so do-
    ing, prevailed. There is evidence that the islamic
    regime has antagonized many (perhaps all) of
    these same factions to the point where they again
    might be willing to support a change if they feel
    that it could succeed. This is the foundational
    belief of those Americans who support regime
    change, and their hope is that the United States
    can provide whatever the Iranian people need to
    believe that another revolution is feasible.

    of course, popular revolutions are incredibly
    complex and rare events. There is little scholarly
    consensus on what causes a popular revolution,
    or even the conditions that facilitate them. even
    factors often associated with revolutions, such as
    military defeat, neglect of the military, economic
    crises, and splits within the elite have all been reg-
    ular events across the world and throughout his-
    tory, but only a very few have resulted in a popu-
    lar revolution. consequently, all of the literature
    on how best to promote a popular revolution—
    in iran or anywhere else—is highly speculative.
    Nevertheless, it is the one policy option that holds
    out the prospect that the United states might
    eliminate all of the problems it faces from iran, do
    so at a bearable cost, and do so in a manner that is
    acceptable to the iranian people and most of the
    rest of the world.

    Goal
    The true objective of this policy option is to over-
    throw the clerical regime in Tehran and see it
    replaced, hopefully, by one whose views would
    be more compatible with U.s. interests in the
    region. The policy does, in its own way, seek a
    change in Iranian behavior, but by eliminating the
    government that is responsible for that behavior…”

    Lovely? Thanks Stacy for bringing us the other side!

    Tweeter Revolution?

  13. frances snoot says:

    http://www.youtube.com/watch?v=V68ph9xPUxg

    The toad spits wisdom…

  14. frances snoot says:

    Here’s the link to the Alex Jones site in case someone is interested (Brooking’s paper):
    http://www.infowars.com/brookings-publication-mentions-possibility-of-‘horrific-provocation’-to-trigger-iran-invasion/

  15. Ah.Nix says:

    Don’t worry Canadians.
    New numbers may show recession’s worst is over.
    Yes those green shoots…just keep shooting.

    I know the recession is over and has been replaced by depression.
    Don’t tell the experts because they believe the economy is showing signs of life.
    Could be the experts are bloodsucking vampires and as long as they see a drop of blood somewhere, then things are still great.

    Now where is that $15M of gold missing from the Royal Canadian Mint?
    Everything is cool though the RCMP are on it, and we know they always get their man, or terrorist, or Muslim, or….hell you know what I mean.

  16. ispice says:

    Anyone read about the Bangladeshi factory uprising?

    http://libcom.org/news/short-fuse-50000-workers-streets-50-factories-burning-bangladesh-30062009

    Too bad they didnt or couldnt repossess, or take over the factory Argentinian style.

    Nice to see many other Canadian here.

  17. Phil says:

    Just Whom Does Wachtell, Lipton, Rosen & Katz Represent?

    http://zerohedge.blogspot.com/2009/06/just-who-does-wachtell-lipton-rosen.html

    Nice piece from ZH on naked short selling and the SEC.

  18. Phil says:

    Denninger calls for July 4th. “stop consuming” revolution

    “Starve The Beast” – July 4th, 2009
    http://market-ticker.denninger.net/archives/1174-Starve-The-Beast-July-4th,-2009.html

  19. frances snoot says:

    @Phil:
    From your link to Denninger:
    “Until then the position of those who wish to join is simple: No non-essential purchases of anything are made. Period.”

    So? Most Americans are already down to peanut butter and jelly. How is the Denninger suggestion a power grab?

    “Put the money you save (it will be a lot!) into a non-TARP Credit Union if you have one available to you, or a non-TARP local bank if you do not. Spend none of it.”
    Dumber yet: we are either going into hyperinflation or default. How bright to put our US bucks (what little we have) into a bank not protected by insiders. Righteo…I’m sure this policy is EXACTLY what the insiders are doing, right? But we big bad American consumers can get our power back by following this:

    “If we pledge to do this and not resume normal spending habits on wants as opposed to needs until and unless the budget is balanced, the bailouts are rolled back and those who committed fraud go to prison the government will be forced to act as they will simply run out of money.”

    Local governments are is a hysterical state of panic, induced by a huge drop in tax receipts. How can not spending locally help put Big Bad Bernanke in jail? It is over for the American consumer: China realizes this and does not want to play in the American ball game anymore. Why doesn’t Denninger?

  20. Phil says:

    @frances .. “Denninger”

    Good points .. and my first impression was that this is all too late anyway. Better to support Ron Paul’s FED Audit in any way possible.
    BTW .. Karl “loves” the system which he knows and understands so well … except that he was (imo) very slow to realize that the WHOLE system is crooked.

    He should take a few hours , sorry days , to talk to Catherine Austin-Fitts IMO.

    I glanced today at the acknowledgment section at the beginning of “Crossing the Rubicon” … and C.A-F was the first to be acknowledged !

  21. frances snoot says:

    …more Denninger:

    “overnment cuts the annual budget deficit to zero. If government wants to blow the money it has to have the money. If they can’t raise the money they don’t spend it. It is time to live within our means and hold government to account for its profligate spending along with promises of “benefits” they know they cannot actually deliver down the road such as Medicare Part D.”

    This will happen when the dollar is not longer the reserve currency. IMHO we don’t have long to wait!

    “Consumer spending is 70% of the economy.

    This is a consumer weapon that is more powerful than any other means of peaceful protest. Strangling the government and private business’ ability to steal from us all by cutting off their revenue will force reform, and has the additional benefit of being exactly what this nation needs to provide a strong capital formation base when that reform is complete.”

    What was the US GDP drop this quarter? 6.1%. Astronomical, mostly cratered by a lack of domestic consumer spending…Why would Denninger ignore this? What percent of the economy is consumer spending now?
    http://www.haver.com/COMMENT/090429a.HTM
    “Businesses worked with a vengeance last quarter to reduce levels of unwanted inventory. The 6.1% (AR) drop in real GDP was about the same as during 4Q ’08, but together the back-to-back declines were the worst since early-1958. Consensus expectations had been for a 1Q decline of roughly 5.0%.

    · Cutbacks of unwanted levels of inventory, which built up as demand cratered during last year’s second half, subtracted 2.8 percentage points from GDP growth. That was the most since the first quarter of 2000 and it rivals the biggest negative contribution from inventories since the early-1980s.

    · The correction followed an unwanted inventory buildup late during 2008 as demand fell sharply. Real U.S. final sales to domestic purchasers contracted at a 5.1% annual rate that was little different from the 4Q decline. Together, these declines also were the sharpest since 1958. However, the latest decline in overall demand took on somewhat of a different composition.”

  22. frances snoot says:

    @Phil:
    Sorry. But the Fed audit is the worst thing we could do for our country at this time. The useful idiots behind that one want to give the power from the Fed to the US Treasury, which would be like handing the keys to the kingdom to the IMF (BIS). We taxpayers are shoveling the dirt out for the BIS to throw us in a hole. I like the way Mr. Paul talks, but ask him who will maintain as he puts it “the power to coin money”. If he says Treasury, run for the hills.

    This is one collosal mess.

  23. frances snoot says:

    @Stacy:
    I hope you’re not ‘long’ Denninger! Don’t mean to use your forum to attack KD, so sorry about that. Just, what nonsense the plan of attack is he recommends!

    Stacy is always VERY open to being non-censor and I appreciate that and all I say is of course my own opinion!

  24. Dedo says:

    onions,……opinions,………both make your eyes water when you dissect them.!!
    (Not bad with cheese though IMO)

  25. Fibon1123 says:

    I am begining to form the opinion that every time the metals dip someone buys a huge chunk and this is announced the next day or so.

    The fundamentals just seem to get better and better and nothing changes but the soap opera continues, until we crack and fall into chaos as the spin of it all accelerates. This video forms a good economic analogy.

    As you watch ask yourself what’s the probability, like you know and try to guess exactly when it breaks, you will be wrong, now try and put it together. My point you can not guess when, as no one can, and if you do, it was luck and only when it breaks does the end appear obvious to everyone and then it really gets scary.

    http://www.youtube.com/watch?v=wuK7YFhqwWY

  26. Phil says:

    @Fibon1123 … ” nothing changes but the soap opera continues, until we crack and fall into chaos as the spin of it all accelerates. This video forms a good economic analogy.”

    Exploding Windmill !
    Good analogy !

    It is getting rather tedious waiting for what we know “must” happen. The question is will “they” pull off some trick to keep the music playing for yet another year ?

  27. Dedo says:

    @Fib’,……not only did I guess exactly when it exploded,.but also where the pieces were going to land, and how many!!!

  28. Phil says:

    Gilligan’s Corner
    Debt-based Money: A guarantee to destroy the planet.
    April 1, 2008 · 20 Comments

    http://gilliganscorner.wordpress.com/2008/04/01/debt-based-money-a-guarantee-to-destroy-the-planet/

    The article relates Economic Growth to Destruction of the Planet …

    … ” This is not sustainable. The economy is 100% driven from whatever we can fish out of the sea, farm off the land, or dig out of the earth. It can’t go on forever. The planet will collapse into a smoking hole. I am not a big truther on global warming, but it would be insanity to ignore ALL arguments. The earth is flashing warning signs at us. ” …

    FWIW

  29. Phil says:

    And it gets better :

    NYSE Halts Transparency, Feels Goldman Program Trading Disclosure Is Unnecessary

    http://zerohedge.blogspot.com/2009/06/nyse-halts-transparency-feels-goldman.html

    DPTR = Daily Program Trading Report

    … ” The Exchange has filed with the SEC to implement the decommissioning of the DPTRrequirement following the July 10, 2009 trade date. Accordingly, the last required submission of the DPTR will be on July 14, 2009, which is the second business day after the last trade date for which the DPTR is required. ” …

  30. Tim Gandee says:

    Financial Service Committee to Have Hearing on the Role of the Federal Reserve July 9

    I called into Congressman Frank’s office today to find out if a hearing will be had on HR 1207 and was instructed to contact the Financial Service Committee. Upon calling them, I asked if a hearing on HR 1207 would be coming up anytime soon. Her statement was that the committee would be having a hearing on the role of the Federal Reserve July 9, but not for the bill. How can this be?

    I asked if this bill would be covered in the context of this meeting and she said that perhaps it would. This is the typical Washington shuffle. Talk about the bill but don’t address it.

    Congressman Frank promised to have a hearing for this bill, but no movement. Forget calling Frank. Let’s call the Committee responsible for hearing the bill. Time for us to turn on the heat.

    The Committee is a great place to call to start telling them that a hearing of this bill should be scheduled and the People are demanding it.

    They can be reached at 202-225-4247. Please call today and politely ask for a hearing of HR 1207 to be scheduled.

    “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford

  31. sharon says:

    @mike2liverpool,
    Would you stop wishing for the £ to crash – I’m trying to sell my bloody house and it would not be in my interests for the £ to crash at this moment in time. You willing it to crash could make it happen if you believe in quantam physics/mind over matter so knock it off!

  32. Phil says:

    @sharon … ” stop wishing for the £ to crash ”

    Sharon,
    you’d better hope he “keeps on wishing” !
    When he stops, it will already have happened.
    PS: All part of Quantum Physics !
    ;-)

  33. Phil says:

    @The NYSE Responds to Zero Hedge

    http://zerohedge.blogspot.com/2009/06/nyse-retorts.html

    … ” Tyler — I’m with NYSE corporate communications and wanted to let you know that NYSE is not eliminating the weekly report; we’re just changing the source of the data to eliminate duplication. “….

    Aha .. jumped the gun !

  34. Dedo says:

    @Sharon,….You still haven’t sold your house!!!?
    Anyone would think there are no buyers, and banks aren’t lending any money, and folk are getting layed off, and,.and,. haha
    If you ask nicely,…everyone on the net might be able to chip in for a piece of blighty,….I mean,…folk come here and buy freakin’ post cards for over a pound.!!!! ; )

  35. Skittles says:

    something wierd going on .. the chaps who had for 6 six years fought hard the freetard fight have copped out for a bundle o cash

    –>
    http://www.theregister.co.uk/2009/06/30/pirate_bay_gaming_factory_x_ab/

  36. Phil says:

    Mother Earth – Pale Blue Dot

    Carl Sagan – Pale Blue Dot
    http://www.youtube.com/watch?v=p86BPM1GV8M&feature=rec-HM-fresh+div

    Nice little piece with many true words !

    PS: The only adjective he used for Politicians was “corrupt” !!!

    PPS: @Mother Earth … a beautiful place !

  37. stacyherbert says:

    @Tim Gandee – Very interesting. Is Frank your Congressman? Did his office ask if you were a constituent? I think that based on what happened with the TARP stuff and the aftermath, it is the elected politiicans who are up for re-election in 2010 that are the most vulnerable to calls from their voters on this sort of stuff. Has anyone compiled a list of members who might be encouraged to vote on HR1207?

  38. Youri Carma says:

    Nailed down pretty good back in November 2008. If you realy want to know the underlying causes of the problem http://tinyurl.com/mmly8c

  39. stacyherbert says:

    @frances snoot – nope, just long whiskey and packets of sugar myself ;)

    oh and some coins

  40. frances snoot says:

    @Stacy
    Good move. If I could get it, I’d be long Absinthe.

  41. frances snoot says:

    @Mr. Gandy:

    What happens if the audit discovers the Fed is insolvent?

  42. klaos says:

    @Skittles

    they just sold their (rapidly becoming worthless) domain name for 7 million bucks. no intellectual property involved. i say more power to ‘em.

    i bet they just set something else up, like oink -> waffles

    Granted, if the RIAFIA gets the db and starts going after users, I’ll take it all back, but it doesn’t seem like that’s the case.

  43. klaos says:

    from the ‘bay:

    User deletion

    We are going to build a user deletion interface later today. Many people have asked about having their account removed and we will not force anyone to stay on of course.

    However, we also want to point out that we have no logs of anything, no personal data will be transferred in the eventual sale (since no personal data is kept). So no need to be worried for safety. We always care for that.

    yep, 7 mil for a domain name, lol.

  44. Mother Earth says:

    @klaos, 7,8 million for a domain name with no revenue stream?

    http://www.thelocal.se/20364/20090630/

    @phil that video made me so warm and fuzzy my neighbour rang the doorbel to hug me ;-)

    If all money is IOU, lets hope they are not owned by the maffia..Oh boy!

    Apparently Michael Jackson was forced by his lawyer/banker entourage to go for 50 concerts when you thought he could only do 10 and was openly wishing himself dead. No one ever expected him to actually do the concerts. Just for the sake of getting some sociopaths of the street I would want to know if anyone was a CDO against the Jackson estate…

    http://www.dailymail.co.uk/news/article-1196009/Im-better-dead-Im-How-Michael-Jackson-predicted-death-months-ago.html

    @Mike can you simultaneously will increased petty crime rates for all other neighborhoods except Sharons?

  45. frances snoot says:

    PPIP never died, it waited and revived. Looks like those bonuses for the big banks squeaked through before the next asset crash. Goody. PPIP 2.0 (quietly now)
    http://www.bloomberg.com/apps/news?pid=20601087&sid=aTNPSM41TDuc

  46. T says:

    Here’s a prediction. And forgive me (since you probably know this already).

    Will California and these other states shut down? Yes. There will be public outrage, various stories and concerned officials in nice soundbites. But the underlying problems are still there (and will NOT be dealt with):

    The mentality that winning the White House is THE ONLY thing that matters.

    The neocons are still pissed off that a person of color is President. Most of them won’t be caught using the n word. But they’ll get caught using lots of other racist stuff instead.

    Unlimited printing of money leads to hyperinflation, devaluation of the currency. And then growing protectionism worldwide in response. Or at least that’s what I learned in economics courses in uni.

    Unless Obama stops printing all of this money, this means either cuts or higher taxes for the super wealthy. Naturally, this is political suicide for politicians. But what do you say to Calif.’s gov. when he says do away with printed textbooks in schools. Use electronic ones instead. Way cheaper. Has he ever tried to teach 45 students in a class with no textbooks???????

    Obama refuses to not be centrist on health care. It amazes me that this has been carefully “analyzed, investigated and looked at” by various economists, experts and gov. officials. And STILL they don’t get it. What’s so hard to understand about a basic human right? If they’re so concerned about health coverage for all, why doesn’t Obama declare a National Emergency (thru an Executive Order)? Nobody’s leaving UNTIL we fix this.

    The neocons would scream about missing their summer break. The MSM would have a field day saying Obama’s a dictator. This would be an occasional break from the almost 24 hr. coverage of Michael Jackson and Mark Stanford’s “alleged” mistress hit parade.

    Place your bets now on how long Obama and the Fed will deny state bailouts.

  47. Mike/Liverpool says:

    Mother
    During the height of the boom, when EVER company wanted people……….full employment, i got beaten & carjacked…………….6 months later i tried to get a gun to kill myself.

    I hate LABOUR/NEO-LIB scumbags that did everything to help the crimo scum of Liverpool & Britan using MY Tax money. I totally disagree with Max, i think locking up Violent scum for long peroids of time IS a very good idea.

    Mike
    Ps Stacy where is the clip

  48. klaos says:

    BREAKING NEWS:

    Obama announces Jason Cronie, Ph.D in Internet Surfing (Diploma Mill University), as E-Commerce Czar.

    Jason will run the latest bailout acquisition, http://www.thepiratebay.com

    Geithner projects $4 trillion in online sales via the ‘bay.

    S&P rallies 300 points on the news.

  49. Mike/Liverpool says:

    Wow
    http://www.ft.com/cms/s/0/4d122398-6586-11de-8e34-00144feabdc0.html

    RBS has a bigger loan book than the UK ecomery!!!
    Mike

  50. geopol says:

    Nacy Polosi just got a 6.9 million $ expense account = 575,000.00 a month

    We are fucke*

    As part of a 6 billion $ payout for all congressmen.

    The American people are DONE

  51. gonzomarx says:

    Mortgage defaults in America, Can pay, won’t pay
    http://tinyurl.com/mqvxcj

    a warning from history of the perils of debasing the currency
    A Short History of International Currencies
    http://tinyurl.com/ly6hfz

    an even shorter version here http://tinyurl.com/maa36r

  52. Lloyd says:

    Stacy: Until you find Max’s “thing of beauty,” here’s Ken Lewis’ –

    http://www.sling.com/video/show/123421/58/Merill-Will-Be-A-Thing-Of-Beauty-Ov

  53. Gerry says:

    The thing about Cali going to the wall is scary because it is the largest state economy, the industrial base, these days, what’s left of it.

    When Arnie says No-can-Do-Ski this is some DEEEEEEEEP Shit..

  54. Youri Carma says:

    Zimbabwe turns to China for $950m credit line http://tinyurl.com/nrw8vl

  55. jterror says:

    to alex jones fans who missed todays episode, this is goddamned hilarious:

    http://twitter.com/heidimontag (heidi montag attempts to inform miley cyrus about the child-bullying act)

    http://www.infowars.com/mtv-star-heidi-montag-over-my-dead-body-would-i-take-a-microchip/

  56. Youri Carma says:

    Swedish PM says financial sector still in crisis http://tinyurl.com/kmehv6

  57. Youri Carma says:

    Japan Tankan Confidence Rises Less Than Expected, Signals Slower Recovery http://tinyurl.com/mmyc7e

  58. Youri Carma says:

    Bernankes ‘Green Shoots’ Take Over the Lexicon, If Not Economy (Update1) http://tinyurl.com/mrm223

    By Matthew Benjamin

    June 30 (Bloomberg) — The current recession has created at least one growth industry: use of the phrase “green shoots.”

    Since Federal Reserve Chairman Ben S. Bernanke first uttered the words almost four months ago to describe signs of a thaw in frozen credit markets, instances of the botanical metaphor in the press have climbed sevenfold. A Google search for “green shoots” returns 4.86 million hits.

    “These may be the two most overused and annoying words of my investment career,” said John Mauldin, president of Millennium Wave Advisors LLC in Arlington, Texas. “Every possible sign of a recovery is anointed with the phrase.”

    Declining interest rates on mortgages and business loans led Bernanke to say on the March 15 CBS News program “60 Minutes” that he detected “green shoots” in some financial markets where the Fed had acted to restart lending. The locution appeared 3,123 times in news articles last month, up from 436 in February, according to research by Japanese brokerage Nomura Holdings Inc.

    Both bears and bulls have pressed the phrase into service.

    Jim O’Neill, the chief economist at Goldman Sachs Group Inc., said April 27 that the green shoots of global economic recovery are “turning into daffodils,” when he upgraded his forecast for 2010 world growth to 3.2 percent from 2.8 percent.

    ‘It’s Moss’

    “Housing is still a drag on the economy,” David Coard, head of fixed-income trading in New York at Williams Capital Group, a brokerage for institutional investors, said May 26. “It may be green shoots, but they are growing slowly. It’s moss.”

    Billionaire investor Warren Buffett joked June 24 that he had yet to see any green shoots, adding that his eyesight may be to blame.

    “We’re not seeing them,” Buffett said on CNBC. “I had a cataract operation in my left eye about a month ago and I thought, maybe now I’ll be able to see some green shoots.”

    Bernanke’s tendrils of economic hope have been compared with trees and mold. They have been said to be on the verge of blossoming, as well as in danger of withering, browning and succumbing to frost.

    Nouriel Roubini, the New York University economist referred to as Dr. Doom for predicting the current crisis, enlisted the phrase to temper budding optimism about the economy.

    ‘Yellow Weeds’

    “People talk a lot about these green shoots,” Roubini said June 22 in Paris. Yet looking at the economic data, he said, “I see more yellow weeds than green shoots.” Instead, he predicted the recession in the advanced economies would last another six to nine months.

    The phrase has also spilled over into non-economic realms.

    In a June 28 column on the Israeli-Palestinian conflict, Washington Post writer Jim Hoagland said, “Green shoots of peace are glimpsed in some quarters.” A June 21 entry on the Daily Kos blog about Iranian demonstrations carried the title “The Green Shoots of New Peace.”

    While Bernanke may be identified with the phrase, he isn’t the first to use it. During the early 1990s recession, Britain’s former Chancellor of the Exchequer Norman Lamont declared that “the green shoots of economic spring are appearing once again.” That comment came back to haunt Lamont when growth failed to appear for months.

    Not ‘Reliable’

    “This has actually been around for quite a while,” Geoffrey Nunberg, a professor at the School of Information at the University of California in Berkeley and author of “The Years of Talking Dangerously,” said. “It pops just after every trough, but isn’t a particularly reliable indicator.”

    Accurate or not, Bernanke’s resurrection of the expression may have done some good this time around. Consumer and business confidence measures improved as it proliferated in the media, according to data compiled by Bloomberg.

    As “catch-phrases go, I can’t recall another business- related one that has had such a grip on the public,” said Bernie McSherry, a senior vice president at Cuttone & Co., one of the largest floor brokerages at the New York Stock Exchange. “Since green shoots don’t remain mere shoots forever, it’s time to retire the phrase and replace it with something indicative of where the economy is today.”

    The term is “overused, not to mention overrated,” said David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates in Toronto. “It is more a comment on the human condition and the innate need for optimism” than an accurate description of the economy and markets, he said.

    A substitute phrase may also be needed if the U.S. economy slows down again later this year, said Rosenberg, the former chief North American economist at Merrill Lynch & Co.

    “We will not very likely see ‘brown manure’ as the catchy horticultural replacement to green shoots,” he said.

    To contact the reporter on this story: Matthew Benjamin in Washington at mbenjamin2@bloomberg.net.

  59. Phil says:

    Asia Times : OBAMA, CHANGE AND CHINA

    The song stays the same
    By Henry C K Liu
    Mar 6, 2009
    Part 1
    http://www.atimes.com/atimes/China_Business/KC06Cb02.html

    Follow article for Parts 2-4

  60. Phil says:

    ICN Informed Citizen News 06/28/09

    http://www.youtube.com/watch?v=WXFjYgSU71g

    ICN Informed Citizen News broadcast Sunday June 28th, 2009. The news you should have heard this week, but didn’t.

    This week’s stories…

    Story #1 – Baxter charged for releasing live avian bird flu by Vienna State Prosecutors Office

    Story #2 – Sotomeyor Resigns from Belizian Club

    Story #3 – Bush planned false flag to lure U.N into Iraq in 2003

    Story #4 – CDC Vaccine Advisor Pockets $29 Million Promoting Vaccines

    Story #5 – Vegas newspaper asked to give up commenters on tax case

    Story #6 – Insider Stock Sales Set Record Pace

    Story #7 – David Rockefeller Proud To Work Against the U.S.

    Links to articles provided on the above link.
    FWIW

  61. Ruth says:

    I’ve been seeing a lot of “green shoots” lately, in connection with the US economy.

    There are several pieces of land near my home and my workplace which had building materials deposited on them in anticipation of construction work.

    That was 2 years ago, and I noticed recently that lots of sizeable green shoots have now grown up on top of this building material.

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