Unrest feared in Detroit

As the clock ticks down on Detroit’s long-coming financial meltdown, some residents wonder if the Motor City is poised on the edge of an explosive summer of unrest.

Last week, members of the Detroit City Council said they would let play out a legal challenge to an agreement with the state over revenue-sharing - even as the city is set to run out of money by Friday.

Detroit has filed a lawsuit against the state of Michigan seeking funds it says are due the city. The state disagrees and has warned Detroit that the perpetually cash-strapped city will lose $80 million in state revenue-sharing funds if it doesn’t drop the lawsuit, which is slated to be heard Wednesday in Ingham County Circuit Court.

Without that cash infusion from the state, Detroit faces bankruptcy and a possible state takeover, warns Mayor Dave Bing, who has called for the lawsuit to be withdrawn.

The latest drama has some in Detroit saying it’s time to let the state take over.

“The consent agreement isn’t working, and won’t work, because the city officials … won’t or don’t have what it takes,” said an editorial in the Detroit News, which also described Mr. Bing as “impotent.”

Stephen Henderson, the editorial page editor at the Detroit Free Press, chided city leaders in a column: “Swallow your pride - or choke on it.”

On the News’ website, reader Todd Sperl wrote: “My concern here is that we are only a few hot summer days away from civil unrest. Then the council will be on TV calling for the governor to do something.”

For months, Republican Gov. Rick Snyder has proceeded gently, aware of Detroit’s pride. He offered the city wide latitude to solve its own problems, working with Mr. Bing to develop the current consent agreement in hopes of avoiding the use of the state’s controversial emergency financial manager law, which gives the state the power to take over cities drowning in red ink.

Mr. Bing, the former basketball legend and successful businessman elected after the scandal-plagued term of former mayor Kwame Kilpatrick, has long had a fractious relationship with the City Council, but has worked diligently to maintain local control.

But with unions refusing more concessions, the city is staggering under more than $7 billion in legacy costs and underfunded pension liabilities. Debt eats up so much of the budget, the city is struggling to keep up with basic services - including keeping streetlights on.

There’s plenty of blame to go around, economists say. For every year since 2002, the city has run a general fund deficit. For every one of those years, it has also had a deficit reduction plan that it has failed to implement, says Bettie Buss, a senior research associate at the nonprofit Citizens Research Council of Michigan.

“You’ve got a city government that was constructed for and a public infrastructure that was designed for a city of two million,” Ms. Buss said, noting that Detroit’s population has declined 61 percent since 1950, with 25 percent of that drop since 2010.

“City leaders have not been able to shrink that government as fast as the tax base has shrunk,” she said.

The Washington Times

The U.S. Economy By The Numbers

Why is the economy going to collapse?  Have you ever been asked that question?  If so, what did you say?  Sometimes it is difficult to communicate dozens of complicated economic and financial concepts in a package that the average person on the street can easily digest.  It can be very frustrating to know that something is true but not be able to explain it clearly to someone else.  

Hopefully many of you out there will find the list below useful.  It is a list of 70 numbers that show why we are headed for a national economic nightmare.  So why does the title of the article single out Barack Obama?  Well, it is because right now he is the biggest cheerleader for the economy.  He is attempting to convince all of us that everything is just fine and that the economy is heading in a positive direction.  Well, the truth is that everything is not fine and things are about to get a whole lot worse.  Certainly others should share in the blame as well.  

Congress has been steering the economy in the wrong direction for decades, the "too big to fail" banks have turned Wall Street into a pyramid of risk, leverage and debt, and the Federal Reserve has more power over the financial system than anyone else does.  Our economy has been in decline for quite a while now, and soon we are going to smash directly into an economic brick wall.  Unfortunately, a lot of Americans are in denial about this.  A lot of people out there doubt that an economic collapse is coming.  Well, if you know someone that believes that the U.S. economy is going to be "just fine", just show them the list below.

The following are 70 facts that Barack Obama does not want you to see....

$3.59 - When Barack Obama entered the White House, the average price of a gallon of gasoline was $1.85.  Today, it is $3.59.

22 - It is hard to believe, but today the poverty rate for children living in the United States is a whopping 22 percent.

23 - According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilitiespermanently shut down in the United States every single day during 2010.

30 - Back in 2007, about 10 percent of all unemployed Americans had been out of work for 52 weeks or longer.  Today, that number is above 30 percent.

32 - The amount of money that the federal government gives directly to Americans has increasedby 32 percent since Barack Obama entered the White House.

35 - U.S. housing prices are now down a total of 35 percent from the peak of the housing bubble.

40 - The official U.S. unemployment rate has been above 8 percent for 40 months in a row.

42 - According to one survey, 42 percent of all American workers are currently living paycheck to paycheck.

48 - Shockingly, at this point 48 percent of all Americans are either considered to be "low income" or are living in poverty.

49 - Today, an astounding 49.1 percent of all Americans live in a home where at least one person receives benefits from the government.

53 - Last year, an astounding 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed.

60 - According to a recent Gallup poll, only 60 percent of all Americans say that they have enough money to live comfortably.

61 - At this point the Federal Reserve is essentially monetizing much of the U.S. national debt.  For example, the Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department during 2011.

63 - One recent survey found that 63 percent of all Americans believe that the U.S. economic model is broken.

71 - Today, 71 percent of all small business owners believe that the U.S. economy is still in a recession.

80 - Americans buy 80 percent of the pain pills sold on the entire globe each year.

81 - Credit card debt among Americans in the 25 to 34 year old age bracket has risen by 81 percent since 1989.

85 - 85 percent of all artificial Christmas trees are made in China.

86 - According to one survey, 86 percent of Americans workers in their sixties say that they will continue working past their 65th birthday.

90 - In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

93 - The United States now ranks 93rd in the world in income inequality.

95 - The middle class continues to shrink - 95 percent of the jobs lost during the last recession were middle class jobs.

107 - Each year, the average American must work 107 days just to make enough money to pay local, state and federal taxes.

350 - The average CEO now makes approximately 350 times as much as the average American worker makes.

400 - According to Forbes, the 400 wealthiest Americans have more wealth than the bottom 150 million Americans combined.

$500 - In some areas of Detroit, Michigan you can buy a three bedroom home for just $500.

627 - In 2010, China produced 627 million metric tons of steel.  The United States only produced 80 million metric tons of steel.

877 - 20,000 workers recently applied for just 877 jobs at a Hyundai plant in Montgomery, Alabama.

900 - Auto parts exports from China to the United States have increased by more than 900 percent since the year 2000.

$1580 - When Barack Obama first took office, an ounce of gold was going for about $850.  Today an ounce of gold costs more than $1580 an ounce.

1700 - Consumer debt in America has risen by a whopping 1700% since 1971.

2016 - It is being projected that the Chinese economy will be larger than the U.S. economy by the year 2016.

$4155 - The average American household spent a staggering $4,155 on gasoline during 2011.

$4300 - The amount by which real median household income has declined since Barack Obama entered the White House.

$6000 - If you can believe it, the median price of a home in Detroit is now just $6000.

$10,000 - According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

49,000 - In 2011, our trade deficit with China was more than 49,000 times larger than it was back in 1985.

50,000 - The United States has lost an average of approximately 50,000 manufacturing jobsa month since China joined the World Trade Organization in 2001.

56,000 - The United States has lost more than 56,000 manufacturing facilities since 2001.

$85,000 - According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

$175,587 - The Obama administration spent $175,587 to find out if cocaine causes Japanese quail to engage in sexually risky behavior.

$328,404 - Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars.  That comes to $328,404 for each and every household in the United States.

$361,330 - This is what the average banker in New York City made in 2010.

440,00 - If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to totally pay it off.

500,000 - According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

2,000,000 - Family farms are being systematically wiped out of existence in the United States.  According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today.

$2,000,000 - At this point, the U.S. national debt is rising by more than 2 million dollarsevery single minute.

2,600,000 - In 2010, 2.6 million more Americans fell into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

5,400,000 - When Barack Obama first took office there were 2.7 million long-term unemployed Americans.  Today there are twice as many.

16,000,000 - It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

$20,000,000 - The amount of money the U.S. government was spending to create a version of Sesame Street for children in Pakistan.

25,000,000 - Today, approximately 25 million American adults are living with their parents.

40,000,000 - According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.

46,405,204 - The number of Americans currently on food stamps.  When Barack Obama first entered the White House there were only 32 million Americans on food stamps.

88,000,000 - Today there are more than 88 million working age Americans that are not employed and that are not looking for employment.  That is an all-time record high.

100,000,000 - Overall, there are more than 100 million working age Americans that do not currently have jobs.

$150,000,000 - This is approximately the amount of money that the Obama administration and the U.S. Congress are stealing from future generations of Americans every single hour.

$2,000,000,000 - The amount of money that JP Morgan has admitted that it will lose from derivatives trades gone bad.  Many analysts are convinced that the real number will actually end up being much higher.

$147,000,000,000 - In the U.S., medical costs related to obesity are estimated to be approximately 147 billion dollars a year.

295,500,000,000 - Our trade deficit with China in 2011 was $295.5 billion.  That was the largest trade deficit that one country has had with another country in the history of the planet.

$359,100,000,000 - During the first quarter of 2012, U.S. public debt rose by 359.1 billion dollars.  U.S. GDP only rose by 142.4 billion dollars.

$454,000,000,000 - During fiscal 2011, the U.S. government spent over 454 billion dollarsjust on interest on the national debt.

$1,000,000,000,000 - The total amount of student loan debt in the United States recently surpassed the one trillion dollar mark.

$1,170,000,000,000 - China now holds approximately 1.17 trillion dollars of U.S. government debt.  Yet the U.S. government continues to send them millions of dollars in foreign aid every year.

$1,600,000,000,000 - The amount that has been added to the U.S. national debt since the Republicans took control of the U.S. House of Representatives.  This is more than the first 97 Congresses added to the national debt combined.

$5,000,000,000,000 - The U.S. national debt has risen by more than 5 trillion dollars since the day that Barack Obama first took office.  In a little more than 3 years Obama has added more to the national debt than the first 41 presidents combined.

$5,000,000,000,000 - What the real U.S. budget deficit in 2011 would have been if the federal government had used generally accepted accounting principles.

$11,440,000,000,000 - The total amount of consumer debt in the United States.

$15,734,596,578,458.59 - The U.S. national debt as of June 7, 2012.

$200,000,000,000,000 - Today, the 9 largest banks in the United States have a total of more than 200 trillion dollars of exposure to derivatives.  When the derivatives marketcompletely collapses there won't be enough money in the entire world to fix it.

Economic Collapse

Google says it has sent planes over cities while Apple has spy in the sky technology

London: US tech giants Google and Apple are in the race to come up with aerial maps so detailed and precise that they can practically catch you with your pants down, even in your own backyard.

Google says it has already sent planes over cities while Apple has acquired a firm using spy-in-the-sky technology that has been already tested on at least 20 locations, including London.

Apple's cameras are understood to be so powerful they could potentially see into homes through skylights and windows. The technology is similar to that used by intelligence agencies in identifying terrorist targets in Afghanistan, the Daily Mail reports.

Google will use its spy planes to help create 3D maps with much more detail than its satellite-derived Google Earth images. Nick Pickles, director of Big Brother Watch, warned that privacy risked being sacrificed in a commercial 'race to the bottom.'

"The next generation of maps is taking us over the garden fence," he warned. "You won't be able to sunbathe in your garden without worrying about an Apple or Google plane buzzing overhead, taking pictures."

He said householders should be asked for their consent before images of their homes go online. Apple is expected to unveil its new mapping applications for its iPhone and other devices Monday - along with privacy safeguards. Its 3D maps will reportedly show for the first time the sides of tall buildings, such as the Big Ben clock tower.

Google expects by the end of the year to have 3D coverage of towns and cities with a combined population of 300 million. It has not revealed any locations so far.

Current 3D mapping technology relies on aerial images taken at a much lower resolution than the technology Apple is thought to be using. This means that when users 'zoom in', details tend to be lost because of the poor image quality.

Google ran into trouble when it emerged that its Street View cars, which gathered ground-level panoramic photographs for Google Maps, had also harvested personal data from household wifi networks.

Apple's spy planes are believed to be equipped with technology developed by the military to guide missile strikes. Each plane is equipped with multiple cameras taking high-resolution photographs of buildings and landmarks from every possible angle, which are then compiled to make three-dimensional images.

The military-grade images are taken at a height of around 1,600 ft, meaning people below are very unlikely to realise they are being photographed. The cameras can be installed on planes, helicopters or even unmanned drones, although there are safety restrictions about the use of the latter in Britain.




Zeebiz

Gerald Celente: Global Currency

Iran Reiterates Rejection of Foreign Interference in Syria's Affairs

TEHRAN, (SANA) – Iran reiterated its rejection of all forms of foreign interference in the Syrian internal affairs, stressing that the crisis in Syria should settled by the Syrians only.

Spokesman of the Iranian Foreign Ministry, Ramin Mehmanparast, on Tuesday stressed that Syria is implementing reforms, adding that the plan of the UN envoy Kofi Annan should be supported by all countries.

He highlighted that Iran supports all efforts exerted with the aim of restoring security and stability to Syria as a way to start dialogue between the government and the opposition.

As for the Iranian nuclear file, Mehmanparast stressed Tehran's readiness to hold negotiations with the 5+1 group, considering that the success of discussion depends on the group's constructive cooperation with Iran.

Iranian Defense Minister Calls for Preventing Foreign Interference in Syria's Internal Affairs

Iranian Defense Minister, Brigadier General Ahmad Vahidi, called on Tuesday for preventing foreign interference in Syria's internal affairs and supporting reforms.

Vahidi added in a statement that some sides are seeking to bring about chaos and unrest in Syria; however, reforms are still taking place.

He said, "I believe that all sides, particularly the Syrian people, should back reforms in their country," adding that the western countries should not interfere in Syria's internal affairs.

He pointed out that Iran does not interfere in the internal affairs of Syria.



SANA Syria

Eurozone discussed capital controls if Greece exits euro...get ready

(Reuters) - European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

Belgium's finance minister, Steve Vanackere, said at the end of May that it was a function of each euro zone state to be prepared for problems. These discussions have been in that vein, with the specific aim of limiting a bank run or capital flight.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

"Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed."

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."

The first official said it was still being examined whether there was a legal basis for such extreme measures.

"The Bank of Greece is not aware of any such plans," a central bank spokesman in Athens told Reuters when asked about the sources' comments.

The vast majority of Greeks - some surveys have indicated 75 to 80 percent - like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

However, SYRIZA is expected to win or come a strong second on June 17. Alexis Tsipras, the party's 37-year-old leader, has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the European Union and International Monetary Fund. The EU and IMF have said they are not prepared to renegotiate.

If those differences cannot be resolved, the threat of the country leaving or being forced out of the euro will remain, and hence the need for contingencies to be in place.

Switzerland said last month it was considering introducing capital controls if the euro falls apart.

In a conference call on May 21, the Eurogroup Working Group told euro zone member states that they should each have a plan in place if Greece were to leave the currency.

Belgium's Vanackere said two days after that call that it was a basic function of each euro zone member state to be prepared for any eventuality.

"All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid," he told reporters.

"We must insist on efforts to avoid an exit scenario but that doesn't mean we are not preparing for eventualities."

Reuters

‘Unusual’ activity by North Korea MIG jets

Pyongyang has shown an unusual amount of military activity recently, dispatching additional aircraft to frontline airfields and ordering a flight near the DMZ, according to a government official.

"North Korea has deployed a bunch of Sukhoi and MiG jet fighters to some frontline military airfields, such as those in Taetan, and Nuchon-ri, South Hwanghae," the official told the JoongAng Ilbo yesterday. "They are dramatically bulking up the military drills of those aircraft."

He did not estimate how many combat jets Pyongyang has sent to frontline areas.
The airfields in Taetan and Nuchon-ri are located 40 to 50 kilometers (24 to 31 miles) from the border with Korea, and it would take three to five minutes for a jet to get to Seoul and the Gyeonggi region.

Sources said a Sukhoi S-25 ground attack jet flew close to the Northern Limit Line, 20 to 50 kilometers from the military border, last Tuesday. The regime's new leader, Kim Jong-un, reportedly has increased the duration of air force military exercises.

"Recently, North Korea's general staff of the army checked artillery deployed in South Hwanghae," the official said. "The North's moves near the frontline regions are apparently unusual."

Amid heightened tensions on the Korean Peninsula, Pyongyang is ratcheting up its anti-Seoul propaganda through China-based social networking services.

The JoongAng Ilbo found yesterday that the North Korean regime created five accounts at Weibo, a micro-blogging service in China with an estimated 250 million followers, to denounce the South Korean government and press.

Posting South Korean media reports that condemn North Korean politics or human rights abuses in Chinese, Pyongyang's Weibo accounts say: "They are spitting those f**king, wicked words¡"or "They are saying those nasty words from the f**king dirty mouth."

The Pyongyang Broadcasting Station, a state-owned radio station, also warned yesterday of an attack on the local press or broadcasting stations in the South: "We are waiting to order [the military] to set fire to not only the Chosun Ilbo, the JoongAng Ilbo and the Dong-A Ilbo, but also to KBS, CBS, MBC, and SBS."




Korea Joongang Daily