U.S. Economy Still In Free Fall

Foreclosures Spike Again, Deficit Higher Than Expected, Dollar Decimated

More proof illustrating the economy is still heading in the wrong direction, due to massive spending, surfaced this week, with the news the U.S. dollar is no longer the preferred world currency reserve. Now comes word, foreclosure filings in America have spiked yet again, reaching new record highs.

The U.S. deficit also set another record this week, matching and surpassing Great Depression levels, much like the astounding foreclosure rates.

Once again, the Judiciary Report, would like to emphasize, the solution to the crisis is the government saving money, not spending it.

Deficit Hits $1.4 Trillion, Complicating Stimulus Plans

Published: October 16, 2009 - WASHINGTON — The Obama administration said Friday that the federal budget deficit for the fiscal year that just ended was $1.4 trillion, nearly a trillion dollars greater than the year before and the largest shortfall relative to the size of the economy since 1945...

The shortfall for the fiscal year 2009, which ended Sept. 30, translates to 10 percent of the economy, according to a joint statement from the Treasury secretary, Timothy F. Geithner, and the director of the Office of Management and Budget, Peter R. Orszag. For the 2008 fiscal year, the deficit of $459 billion was 3.2 percent of the economy, as measured by the gross domestic product.

Economists generally agree that annual deficits should not exceed 3 percent of the G.D.P., and that is the level President Obama had vowed to reach by the end of his first term in 2013.

But subsequent spending and tax cuts to stimulate the economy, and lower-than-expected revenues as the recession deepened before bottoming out, combined to push the administration’s deficit forecast to 4.6 percent of G.D.P. for the fiscal year 2013.

At 10 percent of the gross domestic product, the 2009 deficit is the highest since the end of World War II, when it was 21.5 percent. At that level, it already has become a bigger economic and a political issue than any time since the late 1980s...

http://www.nytimes.com

Why Obama's Housing Rescue Hasn't Prevented Record Foreclosures

Fri Oct 16, 9:53 am ET - After taking withering criticism for the Department-of-Motor-Vehicles pace of its initial efforts to keep struggling borrowers out of foreclosure, the Obama administration proudly announced last week that it had hit its goal of 500,000 trial loan modifications almost a month ahead of schedule. But with the foreclosure rate hitting a new record in the third quarter, the government's ability to put a meaningful dent in the tally of housing-crisis victims faces renewed skepticism.

Foreclosure filings were reported on 937,840 homes in the three-month period, a 23 percent jump from a year earlier, according to a report real estate firm RealtyTrac released Thursday. Home foreclosures in September, meanwhile, decreased 4 percent from August but remained 29 percent higher than a year earlier...

http://news.yahoo.com

U.S. Dollar Out As World Reserve Currency

The Decimation Of The Dollar

The U.S. dollar deteriorated again this week, as banks worldwide reportedly opted to make the Euro and the Yen their reserve currency. The Judiciary Report has been warning for the better part of the year, about the dangers of the U.S. Treasury printing up excessive sums of money and the inflationary and budgetary risks it poses.

U.S. President Barack Obama

This was a time for the government to save, not spend. A tax increase of a few percent on the rich, would have brought in more government income, to balance things out. The government is piling up too much debt with too little income to compensate for the drastic spending.

Dollar loses reserve status to yen & euro

Last Updated: 3:16 AM, October 13, 2009 - Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund. Bernanke could go down in economic history as the man who killed the greenback on the operating table.

After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.

"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."...

Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency...

http://www.nypost.com

U.S. Economy Worsening Again

U.S. First Family the Obamas

The U.S. economy is worsening again. According to reports, the economy continues to lose jobs at a rapid rate and the U.S. government continues to print up too much money, which threatens the value of the dollar, creating prime conditions for inflation.

Overspending has positioned the nation to face a longer economic downturn, as there is no such thing as free money when it comes to a world government. That money has to be recouped somehow or it will create serious problems on the national balance sheet.

The United Nations is also pondering the idea of a one world currency, which I dislike. It will not solve the world's financial woes, only devalue some nations' money.

UN wants new global currency to replace dollar

Published: 6:45PM BST 07 Sep 2009 - The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.

Crumpled dollar bill - UN wants new global currency to replace dollar
A number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency

In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.

Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion...

http://www.telegraph.co.uk