Anglo- American Markets- Leading News

Greasy Communist Leader..

Alexis Tsipras, Greece’s youngest political leader, was given a mandate to form a new government at the weekend after his anti-austerity Syriza party came in second. Today he called the country’s austerity agreements “null and void”.

 

It’s Official: USA Economy Heading Down!!!

by Greg Hunter’s USAWatchdog.com 

There has been so much bad economic news out, recently, I do not see how anyone with half a frontal lobe could say the economy is not in trouble.   Friday, new unemployment figures were announced, and a weak 119,000 jobs were created.  The rate fell to 8.1%, but only because more discouraged workers stopped looking for work and disappeared from the government’s data base.   In Friday’s report, economist John Williams of Shadowstats.com summed it all up by saying, “The headline U.3 unemployment rate dropped a statistically insignificant notch to 8.1% in April, from 8.2% in March, but the “good” news was anything but good.  The declining pace of headline unemployment reflected an accelerating increase in the number of the headline unemployed giving up looking for work, because there were no jobs to be had. . . . The SGS-Alternate Unemployment Measure, accordingly, notched higher in April to 22.3%, from 22.2% in March.”  (Click here to go to the free section of Shawowstats.com.)  So, unemployment in the real world actually went up—not down.  According to outplacement firm Challenger, Gray & Christmas, planned job cuts rose 7.1% in April, and more than 40,000 more workers are going to be laid off.  (Click here for more on this story.)

Housing is another sad story.  Year-over-year housing prices continue to decline despite record low 30-year mortgage rates below 4%!  In the last two years alone, 1 million homeowners who bought houses lost money and are underwater.  In January, the Federal Reserve estimated 12 million Americans owed more than their homes were worth.  (Click here for more on that story.)  Economist Robert Shiller of the Case-Shiller home price index lamented, two weeks ago, I worry that we might not see a really major turnaround in our lifetimes.” 

“April Retail sales are the worst since 2009,” read one headline from last week.  “Factory Orders Post Biggest Decline in Three Years,” read another headline from last week, as well.  Even the auto sector took a hit as the headline says, “April auto sales cool.”  Overall, sales were up a paltry 2%, but GM sales were down a hefty 8% and Ford sales declined 5%.  Please keep in mind, if it were not for sub-prime auto loans, sales would fall off a cliff.  Add it all up, and it is a miracle that the nation’s gross domestic product (GDP) only slowed down to 2.2% in the first quarter from 3% in the last quarter of 2011.  Is there any wonder why Fed Chief Ben Bernanke  signaled, two weeks ago, that money printing “tools . . . remained very much on the table,” if the economy faltered.  Last week, Charles Evans of the Chicago Fed and Atlanta Fed President Dennis Lockhart echoed Mr. Bernanke’s sentiment on CNBC.  Both talked about “expanding the balance sheet” of the Federal Reserve and clearly said there was more room for “accommodation.”  Mr. Lockhart said, “I am a bit reticent to pull the trigger on any new action. I think we need to see how the economy evolves.” 

Well, it looks like the economy is evolving all right or better said–plunging.  Williams says, “A renewed faltering of U.S. economic activity is a fortuitous development for the bank-propping needs of the Federal Reserve. . . . the banking system remains severely stressed, with some form of new easing—a QE-3—likely just a matter of time, and likely sooner rather than later.  All Fed actions since the crisis of 2007 and panic of 2008 have been aimed at saving the banking system—not the economy—where the survival and health of banking system is the Fed’s primary function. . . .there is little the Fed can do to stimulate the economy or to contain inflation.”   I think it’s official, the economy is heading down.  So, expect the Fed to print money to save the banks–again.

http://usawatchdog.com/its-official-economy-heading-down/

American Presidents, Never Done Looting the Taxpayers Until their Funeral Tab is paid!! 

http://www.dailymail.co.uk/news/article-2141288/Perks-ex-presidents-cost-taxpayers-4-million.html

Tory Party Thrashed 

There is no substantive differences in English political parties as the Crown owns them all,  and as such English elections are even more meaningless than USA elections as the crown controls all outcomes. At least in the USA, we have Rothschilds/Soros choice, Obama versus Romney whom for whatever reason the Anglo-Zionist elites dont want, probably simply as they have no sexual dirt on him. Since Romney is from Wall Street we know financial dirt must exist on him in abundance. In California we had Anglo-Zionist Elite Meg Whitman, clearly Queen Elizabeth’s choice, and the lesser Anglo-Zionist devil Jerry Brown and his Yenta, Sweatshop Guess Jeans lawyer wife.

http://www.smh.com.au/world/british-voters-give-cameron-a-thrashing-20120505-1y5qy.html

Insider Charlie Munger Calls VAT to Pay for Bankstes/Wars ‘Inevitable’ in USA

http://dealbook.nytimes.com/2012/05/07/reflecting-on-buffett-business-and-politics/?src=dlbksb

Anglo Bank HSBC reports 26 pc EPS in Q1

Gold rigging profits!!

http://dealbook.nytimes.com/2012/05/08/hsbc-profit-rises-26-in-first-quarter/

India’s Hospital and Indians Generate Superbugs-Global Black Plauge and Death- Chemotherapy for Cancer may not be possible in 2 years in USA

Well, I’ve always done my part and only taken one dose of antibiotics in the last 30 years and only when I was on the verge of an organ failure from bacterial infection I picked up  while working  in Africa. The problem is the women of the world dosing their kids and themselves on anti-biotics for every little sniffle and extreme lack of sanitation at hospitals around the world. The English seem to be gloating over all this in this article. Unless you’re a mountain climber and or an extreme whitewater paddler, I don’t know why anyone would visit India. It is simply not worth the risk and you bring that filth back to your country. People getting off the plane from India all need to be tested for super-bugs and sent home or put in quarantine. But Prince Phillip is very excited by this latest development so nothing will be done in the Anglo world.

http://www.bloomberg.com/news/2012-05-07/drug-defying-germs-from-india-speed-post-antibiotic-era.html

Canada -Housing Bubble Watch

http://www.bloomberg.com/news/2012-05-08/canada-housing-bubble-concern-shown-in-insurer-query-mortgages.html

Commodities Erase 2012 Gains as Economic Outlook May Dim Demand

Commodities fell, erasing this year’s gains, as the struggle by Greek political leaders to form a coalition underscored growing concern that the region’s debt crisis will worsen, dimming prospects for raw-material demand.

The Standard & Poor’s GSCI Spot Index dropped for a fifth straight session, heading for its worst run since August. The measure lost as much as 1.6 percent to 641.8, the lowest since Dec. 29. The gauge, which tracks 24 raw materials, was at 642.8 as of 11:22 a.m. in New York, down 0.3 percent for the year. Silver, gold, cocoa and crude oil led the declines. The last annual slump was in 2008.

Raw materials retreated as Greek political leaders met for a second day in a bid to form a government. New Democracy’s Antonis Samaras failed to forge an agreement following an election that raised questions about the euro membership. Reports showed last week that services and manufacturing output shrank in April in the euro region, and unemployment rose to a 15-year high.

“We’re in a deflationary credit contraction situation globally,” said James Dailey, who manages $215 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania. “The banking systems in ChinaAustralia, and obviously much of Europe are under severe stress, and that’s creating this kind of deflationary contraction that’s starting to unfold. You’re starting to get a smell of panic in the air and shift towards bearishness in commodities broadly.”

Crude oil headed for its longest slump in three months, gold fell below $1,600 an ounce for the first time since January, copper declined the most in almost five weeks, and orange-juice futures tumbled to the lowest price since 2009. Twenty-one of the commodities tracked by the GSCI were lower.

Silver futures for July delivery fell 3 percent to $29.23 an ounce on the Comex, after touching $29.145, the lowest since Jan. 10. Gold futures dropped 2.4 percent to $1,599.70 an ounce, heading for the biggest loss since April 4. Nickel prices on the London Metal Exchange reached the lowest since March 29.

http://www.bloomberg.com/news/2012-05-08/commodities-erase-2012-gains-as-economic-outlook-may-dim-demand.html

U.K. RICS House-Price Gauge Declines to Six-Month Low

Ha, ha. Die English, Die!!

http://www.bloomberg.com/news/2012-05-07/u-k-rics-house-price-gauge-drops-to-six-month-low.html

Gorman Takes Morgan Stanley to the Brink

Looks to be another possible LEH!

http://www.bloomberg.com/news/2012-05-07/morgan-stanley-sees-9-6-billion-collateral-call-if-cut-3-grades.html

KGC -Angloamason Devil Tye Burt to Face Shareholder Wrath

The gold is there and then some at their Mauritanian mine, however the mine build up is a disaster wrt to cost overrun by 1 billion. Burt should be fired. Assets on the books make this worth 20 dollars a share. Could be this is ABX big move to grab the firm. Tye came from ABX. I averaged down in cost. In time this Anglomasonic devil will go. The firm is beyond cheap. I voted against the Redback acquisition not due to the reserves which turned out better than I expected but that they had been sold a bill of goods on the cost of expanding that mining operation, which is why Redback sold out, they did not have the funds to expand quickly. Make or break day for Burts career.

http://www.theglobeandmail.com/globe-investor/kinross-golds-mauritanian-desert-storm/article2425515/

Anglo-Zionist Coca-Cola Delights In Killing Americans With Obesity Related Diseases and Lies About it!

“I do not think in any way, shape or form that such punitive measures will change behaviors,” said Rhona Applebaum, Coca-Cola Co.’s chief scientific and regulatory officer. Anyone deterred by the tax from buying sweetened soda, she said, will replace those calories with something else.

http://www.reuters.com/article/2012/05/08/us-usa-health-obesity-idUSBRE8470LC20120508

USA Stocks Drop as London Returns

Glad I reversed my position at the end of the day and went highly short. I took some profit out of that short this morning. I will go flat by the end of the day. 

U.S. stocks fell, sending the Standard & Poor’s 500 Index to its lowest level in two months, asGreece’s struggle to form a new government intensified concern about a euro exit and deepening of the region’s debt crisis.

McDonald’s Corp. (MCD), the world’s largest restaurant chain, retreated 1.6 percent after April sales trailed analysts’ projections. Electronic Arts Inc. (EA), the second-largest U.S. video-game publisher, declined 7.4 percent after its forecasts fell short of estimates. Fossil Inc. (FOSL), owner of the namesake watch brand, plunged 37 percent after the company reduced its full-year earnings forecast amid weakness in Europe.

The S&P 500 retreated 1.3 percent to 1,352.07 at 10:46 a.m. New York time. The Dow Jones Industrial Average declined 161.21 points, or 1.2 percent, to 12,847.32. The 30-stock gauge slumped for a fifth straight day. Trading in S&P 500 companies was 4.8 percent above the 30-day average at this time of day.

“It’s the unknown in Europe affecting the market,” Hank Smith, chief investment officer at Haverford Trust Co. in Radnor,Pennsylvania, said in a telephone interview. His firm manages about $6.5 billion. “If Greece does exit the euro, will there be contagion? It could have a negative reverberation throughout the globe. Europe needs to start focusing on growth. That doesn’t mean growth of spending. They need austerity.”

American equities joined a global slump as Greek stocks declined to their lowest level in two decades. Greek political leaders meet for a second day to try to form a government after New Democracy’s Antonis Samaras failed to forge an agreement following an election that raised questions about the euro membership.

Overturn Bailout

The attempt to form a government now passes to Alexis Tsipras, the head of Syriza. Tsipras ran on a pledge to overturn Greece’s bailout, helping Syriza emerge as the country’s second- most voted party. He has said he will seek to form a coalition with other parties that favor reversing the 130 billion-euro bailout, the country’s second aid package, which came after Greece carried out the biggest debt restructuring in history.

Greece will probably leave the euro as soon as next month as the government runs out of cash and European institutions fail to lend more to the nation, according to John Taylor of hedge fund FX Concepts LLC.

“This summer I think is very likely,” Taylor, founder and chief executive officer of FX Concepts in New York, said today in an interview on Bloomberg Television’s “Inside Track” with Erik Schatzker. “The Europeans aren’t going to give them the money, the International Monetary Fund’s not going to give them an OK. They will be out of money in June.”

Monthly Decline

The S&P 500 (SPX) has lost 3.2 percent this month as concern about Europe’s debt crisis intensified and data on the U.S. labor market missed forecasts. The index rallied 29 percent from an October low to a four-year high on April 2 amid better-than- expected earnings.

McDonald’s lost 1.6 percent to $94.02. Sales at stores open at least 13 months rose 3.3 percent worldwide last month, trailing estimates, as sales growth slowed in the U.S. Analysts projected a gain of 4.3 percent, the average of 13 estimates compiled by Consensus Metrix. Sales in the U.S. advanced 3.3 percent. Analysts estimated an increase of 5.2 percent.

Electronic Arts dropped 7.4 percent to $14.01. The publisher of “FIFA” soccer and a “Star Wars” multiplayer online game is grappling with shrinking sales of packaged games and will incur a $40 million charge to cut jobs and terminate licenses in that older business. A new online title from PopCap Games, a company acquired last year for as much as $1.3 billion, won’t be out this quarter, said Michael Pachter, an analyst with Wedbush Securities.

Fossil Tumbles

Fossil tumbled 37 percent, the most since 1995, to $78.83. Earnings per share in 2012, excluding the impact of its acquisition of Skagen Designs Ltd, will be as much as $5.33, the watchmaker said. Previously, Fossil had forecast a maximum of $5.50. Analysts projected $5.56, the average of estimates compiled by Bloomberg.

Discovery Communications Inc. (DISCA) retreated 6.1 percent to $50.77. The owner of cable networks such as Animal Planet and TLC reported a 28 percent decline in first-quarter profit after a one-time gain last year on Oprah Winfrey’s network, OWN.

Wynn Resorts Ltd. (WYNN) slid 5 percent to $118.89. The casino company founded by billionaire Steve Wynn reported first-quarter earnings fell 19 percent, missing analysts’ projections on lower winnings in Las Vegas.

Investors should buy utilities because the group tends to do better from May through October, when the S&P 500 averages its worst six-month return of the year, according to Sanford C. Bernstein & Co.

Utilities Gain

A gauge of utilities has risen at an average annualized pace of 12 percent from May through October since 1970, compared with a gain of 4.5 percent for the S&P 500, according to data compiled by Bernstein. The group was the second-worst performing among 10 S&P 500 industries, falling 1.7 percent this year through yesterday, as investors snapped up financial and technology shares in anticipation of an economic rebound.

“With political risk rising in Europe and U.S. economic indicators showing tepid growth, we believe investors should consider holding high yielding, low beta regulated utilities during the traditionally low return, high volatility months of May through October,” Hugh Wynne, a New York-based analyst with Bernstein, wrote in a note yesterday.

The market’s historical pattern of lower returns from May to October, first noted by the Stock Trader’s Almanac in 1986, spawned the Wall Street axiom “sell in May and go away.”

The pattern typically reverses during the rest of the year. Since 1970, the S&P 500 returned an average 8.1 percent from November through April, while utilities lagged behind with a 4.4 percent increase, according to data from Bernstein.

http://www.bloomberg.com/news/2012-05-08/u-s-stock-futures-drop-as-greek-government-talks-stall.html

FED Anglosmason Dudley Urges More Global Gold Rigging 

That is Sir Dudley to you. One of his close kin heads BP!

http://www.reuters.com/article/2012/05/08/us-usa-fed-dudley-idUSBRE8470CG20120508

Wall Street Banks Depressed in Shift Defying Blankfein

The masters of Wall Street get a very, very small measure of their due. Which some say is really the hangman’s noose. 

“By the end of this year, we are going to have another round of headcount reductions because the revenue I just do not see as sustainable,” Peabody said in an April 19 “Bloomberg Surveillance” radio interview with Tom Keene and Ken Prewitt. “We are going to see a severe economic slowdown in the second half of this year, and maybe a recession in 2013.”

One reason: Investors don’t trust the numbers.

“How do you determine book?” said Matthew McCormick, who helps oversee $6.2 billion at Cincinnati-based Bahl & Gaynor Inc. and doesn’t hold stocks of big Wall Street banks. “That’s the $64,000 question, because the true liabilities can’t be ascertained. You have to make more macro calls. There’s still a lot of risk.”…..

http://www.bloomberg.com/news/2012-05-07/wall-street-banks-depressed-in-shift-defying-blankfein.html

 

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7 Responses to Anglo- American Markets- Leading News

  1. vino says:

    some where some one else I read maybe it was here noted that homeland security needs all the ammo they can get because the american public for the most part bears arms… Libyans do to apparently. Libya is in ungovernable chaos today because its people are heavily armed. One should consider this libyan gun firing reaction as a possible outcome of an american economic collapse…Of course homeland security and the army are organized and well armed in america… let’s hope for everyones sake that america does not devolve into a wild west situation

  2. zephyrglobalreport.com says:

    what a load of crap by mr. bitar, a toady for the english. the government is raping the people and squeezing the poor.i see the chinese got wise and kicked al jazeera, aka bbc mideast out for the trouble makning. thanks for the message.

  3. vino says:

    Is the brutal truth about the libyan fiasco due to come out after the american elections ..

    “It is not just rogue elements but a pernicious logic that prevails across the country,” Middle East specialist Karim Bitar said, warning that Libya risks becoming swept by instability

    Libya new rulers get tough: ‘Freedom does not mean anarchy’

    Strengthening state institutions, tackling rogue militias, are steps interim authorities must take to bring about normalisation.

    Middle East Online

    By Dominique Soguel – TRIPOLI

    http://www.middle-east-online.com/english/?id=52167

    Libya risks becoming swept by instability

    The tendency to resort to the arms which ousted Moamer Gathafi poses a roadblock to democracy in the new Libya, analysts warn, while recognising the government’s growing capacity to defuse crises.

    Libyan authorities resorted to force on Tuesday for the first time to repel dozens of armed men who had laid siege to Prime Minister Abdel Rahim al-Kib’s offices to demand stipends and medical treatment for the war wounded.

    “It is not just rogue elements but a pernicious logic that prevails across the country,” Middle East specialist Karim Bitar said, warning that Libya risks becoming swept by instability spreading across the Sahel region.

    “The situation is very worrying,” he said in reference to the latest attack on the government that left one dead and four people wounded.

    Libya’s new rulers face almost daily protests from armed ex-fighters who want financial and other benefits in recognition of their role in toppling the regime of slain leader Gathafi in 2011.

    The government has counted on dialogue with demonstrators, only to be cowed into signing checks by former rebels flaunting their firepower or blocking access to oil companies and institutions.

    “The government will not be able to hold on for long if it keeps yielding to blackmail and buying the allegiance of militias with hard cash,” Bitar said.

    In televised remarks late Tuesday, Kib adopted a tough tone, vowing that his government would “not negotiate under the threat of arms” and warning of the use of force if necessary.

    Tripoli High Security Committee head Khaled Besher said 14 assailants were arrested following the worst attack in Tripoli against Libya’s new rulers.

    How the government deals with militias, made up of former rebels who fought against Gathafi’s regime, could make or break Libya’s transition to democracy, analysts say.

    “People are not going to let go of their arms unless they feel that they are part of the political process,” said an Arab pro-democracy activist in Tripoli, while warning that hurried elections could pave the way for more violence.

    Strengthening state institutions, tackling rogue militias and dealing fairly with former supporters of Gathafi’s regime are steps the interim authorities must take to bring about normalisation, he said.

    “With all the problems, the Libyan leadership has succeeded to a large extent in defusing the tensions,” said the activist, asking not to be named.

    Peter Cole of the International Crisis Group praises the government’s handling of the latest crisis, noting the security forces used to intervene had been handpicked by the interior ministry.

    But the bigger challenge remains in the national army and the defence ministry, which bloc-registered entire brigades without effectively bringing them under their command.

    “By itself, the government and army doesn’t have the capacity to secure the country for elections,” said Cole, adding that individual disputes are likely to erupt during a vote.

    “But the High Election Commission does have the ability to reach out to local authorities to manage security … And there is no indication that, on the whole, militia groups have a desire to derail elections,” he said.

    Jason Pack, a researcher at Cambridge University and president of Libya-Analysis.com, sees it as “unlikely that the national army and security forces can be rapidly established to secure” a vote.

    Libyans are due to elect a constituent assembly next month in what marks the first national vote after four decades of dictatorship.

    The slogan “freedom does not mean anarchy” has become a mantra on the lips of interim government officials struggling to deal with periodic communal conflicts and violent outbursts by former rebels demanding benefits.

    Lamia Abusedra, a founder of the Benghazi-based Forum For a Democratic Libya, said her group is working to spread a culture of dialogue and remains optimistic.

    “We lived under dictatorship for 42 years but everyone agrees that they want democracy,” she said, downplaying the insecurity as the result of a lack of experience in dialogue as well as the abundance of arms.

  4. vino says:

    canadian clowns picture the queens face on the their new $20 bill where the anus is supposed to be…. Maybe it is saying fiat paper is crap. Maybe it is saying the monarchy is BS and maybe it is saying both…. how could anyone be so stupid.. you have to see the picture.. i took the link from drudge if you prefer to go that way… just see the picture and laugh

    ‘Three topless women and the Twin Towers’: Canadians baffled by picture of WWI memorial on their new $20 dollar bill
    Banknote shows the Vimy Memorial – a statue in France representing the bravery and sacrifice of Canadian soldiers in the First World War
    Concern from focus groups during 5-year consultation over design
    By DAILY MAIL REPORTER
    PUBLISHED: 14:48 GMT, 9 May 2012 | UPDATED: 17:50 GMT, 9 May 2012
    Comments (20)
    Share

    Canadians have been left confused over the country’s new $20-dollar bill which some have said appeared to feature three naked woman and the World Trade Center towers.
    The government was rolling out the new banknote as part of an upgrade of the monetary system. It actually features the Vimy Memorial in northern France, the largest monument overseas for Canadian soldiers lost the First World War.
    However many Canadians believed the bill showed the Twin Towers and three topless women along with the head of state, Queen Elizabeth II.
    Scroll down for video

    O Canada! The new $20 banknote was said to be ‘too pornographic’ by some focus groups because it featured the naked figures representing Justice, Peace and Hope on the WWI memorial in France (right)

    Money matters: Bank of Canada Governor Mark Carney (left) and Finance Minister Jim Flaherty display the new Canadian $20 dollar bills made of polymer
    The Vimy Memorial, a nationalist symbol of bravery and sacrifice, was seen on the $20 when it was unveiled by the Bank of Canada in Ottawa last week.
    Focus groups, typically made up of a wide-range of citizens from different generations, had examined the note before it was made public.

    More…
    Father ‘burns his son’s face with an iron over missing $1 bill’
    When maths was a doodle: How the Ancient Egyptians used pictograms to count instead of numbers
    The world’s youngest professional artist who’s already earned £100,000… and she’s only FIVE
    According to Upi.com, one focus group member said: ‘It’s too pornographic. What is the woman on the top holding?’
    Several reports made public after the five-year consultation period noted this concern along with others under the headline ‘potential controversies’.

    Shocked: An excerpt from a focus group report during the five-year consultation period for Canada’s new $20 which called the design ‘too pornographic’
    Some participants in the focus groups were unaware of the wartime memorial honoring thousands of Canadian servicemen, in particular forgotten soldiers with unmarked graves.

    Symbol: The figures on the statue represent justice and peace – the latter with the torch upraised
    Several said the drawing reminded them of the Twin Towers, destroyed in the terrorist attacks on 9/11.
    ‘I wonder if the monument here could conjure up memories of 9/11 or the Twin Towers,’ one person in Toronto said.
    In fact, the two columns of the Vimy Memorial symbolise the unity of France and Canada – represented by a maple leaf and fleur-de-lis.
    The group of women at the top of the statue are known as the Chorus. The most senior figures represent Justice and Peace – the latter with a torch upraised.
    The figures of Hope, Charity, Honour and Faith are located below Justice and Peace. Truth and Knowledge are positioned on the Western side.
    The new $20 bill is due to come into circulation in November and has a high-tech polymer design. The note is currently the most counterfeited in circulation, accounting for more than half the bills in exchange.
    The new method of manufacturing the $20 should make the note more difficult to reproduce, authorities said and last twice as long as paper notes.

    Nationalist symbol: The Vimy Memorial in northern France pays tribute to Canadian soldiers who lost their lives in the First World War

    Money talks: The 2004 version of a Canadian $20 bill with its image of Queen Elizabeth II

    Read more: http://www.dailymail.co.uk/news/article-2141825/Canadas-new-20-dollar-naked-women-Twin-Towers-it.html#ixzz1uOdtQST5

  5. vino says:

    http://www.newsday.co.zw/article/2012-05-08-in-muddle-of-libyas-finances-billions-go-missing/

    the disarray in Libya’s state finances at the end of last year was so bad the new leadership did not know the size of state assets, how their money was being spent
    In muddle of Libya’s finances, billions go missing
    REUTERS | 2012-05-08 15:51:00

    TRIPOLI- Months after rebels brought down the extravagant dictatorship of Muammar Gaddafi, the disarray in Libya’s state finances at the end of last year was so bad the new leadership did not know the size of state assets, how their money was being spent, or what had happened to more than $2 billion transferred from the sovereign wealth fund.
    An internal National Transitional Council (NTC) document paints a picture of a government bureaucracy so fractured and disorganised that nobody appeared able to keep track of what money was coming in, and how much was going out.

    Libyan officials say the anomalies in the state’s finances revealed in the document were the result of complex accounting rules, delays in settling bills and poor communication between government departments – not by money being misused or stolen.

    But campaigners for financial transparency say that the disarray in tracking government finances creates a fertile environment for abuse to occur, particularly when Libya is now earning over $2 billion a month from selling crude oil.

    “The proper management of public finances, especially oil revenues which make up 90 percent of government revenues, is crucial,” said Giulio Carini, a campaigner with the international anti-corruption group Global Witness.

    “Any lack of transparency and accountability… fuels mistrust and suspicion that the interim and any future government of Libya is not taking the necessary steps to reverse the past legacy of mismanagement.”

    Libya has lacked a strong, central government since the rebellion, backed by NATO jets and missiles, ended Gaddafi’s 42-year rule last year.

    International concern about the new Libya has focused on security issues: out-of-control militias clashing with each other, weapons being smuggled across poorly-secured borders, the threat of Libya splitting into regional fiefdoms.

    But there is another risk too, that in the muddle of the transition in Libya, millions and possibly billions of dollars in state assets could be misappropriated.

    The NTC document, which was obtained by Reuters, relates to state finances several months back, under a government that has since been replaced. Nevertheless, high-profile corruption scandals since then indicate that the government’s shortcomings with keeping track of money have still not been resolved.

    ACCOUNTING HOLES

    In November last year, the NTC’s economy and finance committee, which provides oversight over the work of the interim government, submitted an internal report on the activities of the oil and finance ministries, the central bank and the sovereign wealth fund, the Libyan Investment Authority (LIA).

    The seven-page report was dated 27. Nov, 2011. It listed a litany of accounting holes, and failures by branches of the government to share information about the cash they were handling.

    In one passage, the report’s authors said they needed more information to understand how the central bank calculated the $139.9 billion it said Libya held in assets abroad.

    “The question is: what is the size of deposits and investments for the central bank alone?” the report asked.

    In another section, it took the oil and finance ministries to task over their lack of transparency.

    “The (oil and finance) department has not provided monthly reports identifying sources of available financial revenues, their use and the way cash balances are being dealt with,” it said.

    The two ministries had “not provided reports on oil export shipments and the amounts collected in return and how the amounts were spent.”

    It said also it had received no details on who in the public sector had been paid their wages and how much they were paid.

    The NTC said in the document it had reports of “ambiguity” surrounding sales of foreign currency and contracts concluded with brokers and currency traders.

    In a different section, the report’s authors addressed the LIA. The document queried $2.456 billion which the LIA said it had handed over to the treasury, but had, it seemed, not shown up on the government’s books.

    “When have they (the LIA monies) been transferred to the treasury, how have they paid and to whom have they been paid?” the report asked.

    The NTC complained that the sovereign fund was keeping it in the dark on other issues as well. It said the fund provided it with no details on assets held in stocks, bonds or investment funds, including those funds which had registered multi-million-dollar losses.

    In the report, the NTC committee said it had no information on why the LIA’s assets had shrunk. “Total (LIA) resources after 2010 allocations were $65 billion, how did it become $62.956 billion?” the report asked.

    MONEY “NOT MISUSED”

    Asked to comment on the short-comings raised in the report, NTC spokesman Mohammed al-Harizy acknowledged that “communication is very weak between the NTC and the government.”

    He said the NTC had set up a special oil committee, which started work in April, to improve oversight over crude exports and the revenues earned.

    Harizy said there was “no control over the international investments,” and government schemes to provide assistance to people who fought Gaddafi in last year’s revolt have seen cases of corruption at local level.

    But at the ministry level, he said: “I don’t think the money is being misused … The oil revenue is turned over to the finance ministry right away so I don’t think there are problems.”

    Asked about the allegations of “ambiguity” with currency transactions, central bank deputy governor Ali Mohammed Salem said: “We had to sell dollars at a low price in order to bring the cash flow back into the banks.”

    An LIA official, Mohsen Derregia, told Reuters the authority could not immediately comment on the NTC document.

    Ibrahim Belkheir, the head of the Libyan government audit bureau, said his office had looked into the issues raised in the report, including the LIA’s financial statements, but he said he could not disclose his findings.

    He said though that most of the apparent financial discrepancies raised in the report could be explained by routine delays between oil export shipments being delivered and payment being received.

    Belkheir, an academic before the revolt, has been given a leading role in trying to ensure that the pervasive corruption under Gaddafi does not carry over into the new Libya.

    Already there are signs of graft. In one case, the government had to halt a scheme to give cash to people who fought in last year’s rebellion because the money was being paid out to people who were dead or who never fought.

    In another scam, fraudsters enjoyed state-funded vacations abroad by claiming to be wounded veterans of the fighting needing treatment in foreign hospitals.

    The corner office where Belkheir works is steeped in symbolism. It was previously used by Hannibal Gaddafi, a son of the ex-Libyan leader famous for his extravagant lifestyle and raucous parties in five-star European hotels.

    Belkheir said his organisation would root out corruption wherever it found it and had not faced any interference from the new authorities. But he acknowledged he faced a huge task.

    “Corruption is not easy to uproot. It is a cultural issue that is prevailing among certain people,” he said. “As they are so used to it, it does not seem to be corruption to them.”
    Disqus

  6. zephyrglobalreport.com says:

    there is easily over 100 billion barrels there. ruthless murdering tribal culture. be it arab or hebrew or english. i’m sick of it.

  7. vino says:

    libyan coup attempt…everybody and their dog wants in on the payola for guarding the libyan oil installations… now the news discloses that libyan oil revenues have gone missing… so they may buy these raiders off but the theft of the oil revenues is making the natives restless

    http://www.guardian.co.uk/world/2012/may/08/libyan-rebels-storm-prime-minister-office?newsfeed=true

    Libyan rebels storm prime minister’s office
    One man killed as gunmen from former rebel militia occupy office of Libyan prime minister Abdurrahim al-Keib
    Share

    Chris Stephen in Tripoli
    guardian.co.uk, Tuesday 8 May 2012 17.34 BST
    Article history

    Gunmen from a former rebel militia stormed and occupied the office of Libya’s interim prime minister, Abdurrahim al-Keib on Tuesday.

    At least one man was reported killed, paramedics said. Several dozen pickup trucks with heavy machine guns surrounded the building as government negotiators met the former rebels, who are demanding back pay they say they are owed.

    The attack caused pandemonium when the militia, from Kikla, a town in the Nafusa mountains, 70 miles south-west of the capital, attacked in the morning.

    Gunfire echoed as militiamen stormed the front gates and main entrance as staff fled the building. Keib was reportedly not in the building. His whereabouts were unknown.

    Streets around the office, near the headquarters of Libya’s National Oil Corporation, were closed by local militias in the absence of an effective government police force.

    “The guys from Kikla are inside,” said Tripoli militiaman Abdul Zeli, sitting in a Jeep outside the building. “I was woken in the morning and told to come here by my brigade commander. We have a small problem.”

    Periodic bursts of machine gun fire echoed from the building compound, which has been home to the prime minister since the interim government was sworn in last November.

    The protest follows week of rising tension, with militias across the country demanding to be paid as Libya’s oil revenues balloon. The ruling National Transitional Council made a one-off payment of 500 dinars (£250) earlier this year but it was halted amid allegations of fraud.

    Deadlock on back pay saw another militia from the Nafusa mountains delay handing the capital’s airport back to government forces until last month.

    In the streets surrounding the office, there was sympathy from ordinary Libyans for the militia demands. “These militias made the revolution but they don’t get paid,” said Moatasem Sotni, a Tripoli hotel worker standing under the flyover leading to the roadblocks.

    As gunfire echoed through the streets he added: “There is nothing to fear from these guys [the Kikla militia]. They want to be paid. There is plenty of money now in Libya, you can believe it, they should pay them.”

    The attack will cause huge embarrassment for a government which has failed to exert control over the militias that fought in the revolution last year to oust Colonel Muammar Gaddafi.

    Elections are due next month, but some diplomats question whether the chaos and sporadic inter-tribal warfare will make them impossible.

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