Hyper Report - 100831

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First...
China: Rumors of the Central Bank Chief's Defection
Rumors have circulated in China that People’s Bank of China Gov. Zhou Xiaochuan may have left the country. The rumors appear to have been started, following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that there was approximately a $430 billion loss on U.S. Treasury bonds. If this is true and there was a 430 Billion loss... What did he do? Bet the house in Vegas? In addition, if this is true, China will not be in the mood to listen to economic happy talk from Washington.

Next...
Investors Braced For Week Of Key Data
Investors are braced for a week of crucial economic data that could decide the Federal Reserve’s next move after chairman Benji Bernanke said it would ease policy if the outlook deteriorated "significantly". A sustained rise in unemployment is one likely trigger for the Fed to launch further quantitative easing by buying billions of dollars of long-term assets such as Treasury bonds in an attempt to stimulate the economy. I feel the Chinese grimacing on that idea alone. Non-farm payrolls data, to be reported on Friday, is the most important indicator on the labour market and the US economy. It is expected to show that private-sector employers created only 42,000 jobs in August.

Next...
Unreal: Banks' Created Fake Demand to Boost Profits and Yearly Bonuses
Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history. Faced with increasing difficulty in selling the mortgage-backed securities that had been among their most lucrative products, the banks hit on a solution that preserved their quarterly earnings and huge bonuses: They created fake demand. They bought their own collateralized debt obligations, or CDOs, and cranked up an assembly line that otherwise should have flagged. Now that the system is falling apart, the banks will have no where to run... except to the FED.

Next...
The NEA's Latest Shenanigans
The National Education Association was the No. 1 big spender in federal and state political campaigns and ballot measures in the 2007-2008 election cycle. With this in mind, The NEA had an interesting response when it came to answering the question "What does diversity mean to you"? For the NEA, diversity means celebrating the anniversary of the Communist takeover of China by Mao. The NEA posted this on its website calendar as a diversity event for Oct. 1... Your teachers at work here folks. Fortunately, the word got out and the the Mao Calendar item disappeared from the NEA's website.

Next...
Record Number in Government Anti-Poverty Programs
More than 50 million Americans are on Medicaid. Close to 10 million receive unemployment insurance, nearly four times the number from 2007. More than 40 million people get food stamps, an increase of nearly 50% since the economic downturn. In short, 1 out of 6 take government aid of some form.

Finally,
Please prepare now for the forthcoming economic, and subsequent social, unrest that will hit the US.
Good Day

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