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ECB Suspends Greek Bailout Tranche Until Mid November

This story says Greece has enough money to go without a tranche until November. Thus the ECB has suspended the next bailout tranche until they can get bondholders and banks to agree on greater losses.

RT journalist reported over the weekend that Greece has only 8 days of money left. Go figure the truth about this mess.

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Brazil’s Government Decides on Oil Policy

Brazil’s government is racing to forge adeal in Congress this week that it hopes will prevent a lengthy legal and political battle over its huge offshore oil reserves.

Brazil’s states and cities have been quarreling for years over how to distribute the expected multi-trillion-dollar windfall from one of the world’s biggest recent oil finds. Former President Luiz Inacio Lula da Silva called the so-called “subsalt” fields, discovered in 2007, “a gift from God” that could make Brazil a rich country.

President Dilma Rousseff’s government is now trying to defuse the arguments by offering a cut of its own take in future royalties from the fields. Officials are confident Congress will approve the government proposal in coming days or weeks.

“We’re at ease. The interested sides are hard at work … and by the looks of it, they’re forging a quite significant majority,” Gilberto Carvalho, general-secretary of the president’s office, told Reuters.

Yet some leading politicians are still balking at the proposal or threatening legal action. The final outcome is up in the air at a time when Rousseff’s relationship with Congress has been poisoned by budget cuts and other problems.

At stake is Brazil’s plan to become one of the world’s largest suppliers of oil outside of OPEC and to ensure revenue to finance improvements in infrastructure, health programs and education, which are crucial to entering the ranks of developed nations.

The final outcome will have major implications for state oil company Petrobras (PETR4.SA)(PBR.N), and possibly for multinational energy companies such as Italy’s (ENI.MI) and Norway’s Norsk Hydro (NHY.OL), who have expressed interest in helping Brazil develop the fields.

So far Brazil is pumping only a small fraction of the subsalt fields and requires tens of billions of dollars to develop the remaining reserves.

An agreement on distributing oil revenues is needed for the government to go ahead with a planned auction next year for the rights to develop the vast oil fields.

The so-called subsalt region is believed to hold more than 50 billion barrels of oil buried under a thick layer of salt. At current prices that would be about $4 trillion in revenue.

Failure to reach agreement on the bill would spark a drawn-out legal battle, potentially stalling fresh investments for several years. Without a compromise, Congress would almost certainly overrule last year’s veto by Lula of a law that would have distributed more revenue to non-producer states.

The three largest oil producing states — Rio de Janeiro, Sao Paulo and Espirito Santo — are keen to uphold the veto.

Sergio Cabral, governor of Rio de Janeiro, said he would go all the way to the Supreme Court to ensure his state’s oil income. Losing it would generate a political backlash for him and President Dilma Rousseff, Cabral warned.

“The electoral tragedy in Rio would be dramatic,” said Cabral, wary of losing cash before hosting the 2016 Olympics.

Rio de Janeiro pumps the vast majority of Brazil’s roughly 2 million barrels per day of crude.


Cabral proposes hiking a separate oil excise tax, which state oil company Petrobras in turn has said would violate existing contracts and force it to go to court.

New framework legislation passed last year heightened state control over the subsalt region and made state-led oil company Petrobras (PETR4.SA). But private investors can still take a stake of up to 70 percent in joint-ventures.

Mauricio Pedrosa, a partner with asset management group Queluz Asset in Rio de Janeiro, said any changes to existing contracts would be a blow to the company.

“If the royalty agreement alters existing contracts it could affect Petrobras’ cash flow. It’s another risk factor for the company,” said Pedrosa, who helps manage around 300 million reais ($158 million in assets).

The proposal by Rousseff’s administration would cut the federal government’s cut of royalties by almost a third and distribute that to non-producer states.

Producer states like Rio de Janeiro would see a small cut.

The offer was rebuffed by some players, particularly by municipal governments, which would see the biggest losses.

“We don’t understand why the government is punishing the municipalities. We are the ones who suffer the economic and social effects of oil operations,” said Riverton Mussi, mayor of the city of Macae — the country’s main oil hub.

Mussi, who estimates Macae would lose a quarter of its annual budget under the government’s plan, also said he would defend his city’s oil income in court.

“Right now this debate is holding hostage the whole development of the sector,” said Latin America analyst Christopher Garman of the Eurasia consultancy in Washington.


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A Real Candidate is Here; Will You Listen ?

It is a given that some of Ron Paul’s policies are drastic to say the least; but it is time for a real candidate to run the real world. Our economy and way of life is crumbling under status quo….

[youtube:http://www.youtube.com/watch?v=Ka1ym7S3F3w&feature=player_embedded 450 300]

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Michelle Obama Invites You to Relax With Her Husband

From: Michelle Obama [mailto:[email protected]] Sent: Wednesday, September 28, 2011 2:34 PM
Subject: These dinners


Not everyone knows how to prepare for a dinner like this. As someone who’s eaten countless meals with my husband, I want to tell you the one thing to do if you’re selected to join him…

Just relax. Barack wants this dinner to be fun, and he really loves getting to know supporters like you.

I hope you’ll take him up on it before Friday’s deadline.

Will you donate $3 or more today and be entered to have dinner with Barack?

These dinners mean a lot to Barack. They’re a chance for him to talk with a few of the people who are driving the campaign — and a chance for him to say thank you.

So come prepared to tell your story, and say whatever’s on your mind.

Don’t miss the opportunity to be there. Donate $3 today, before the September 30th deadline:





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Kaiser Foundation study suggests Obamacare raised medical costs

Shocker. I love how the Obama Administration then accuses the study of “looking backwards.”

Yeah, dipshits, that’s kind of the point of a study.

The signature legislation of the Obama Administration, the Affordable Care Act, came under damaging assault Wednesday from a Kaiser Family Foundation survey that found it has already partially contributed to increasing health care costs.

The Kaiser survey helps to shed some light on why so few employers are hiring, as health care costs for employers are spiraling upwards.

The survey found that insurance premiums rose by 9 percent in 2011. Healthcare costs for a single worker went up on average from $5,049 to $5,429, and for a family, costs rose from $13,770 to $15,073, on average.

The survey also found that some provisions of the Affordable Care Act already in place — including the allowance for young people up to 26 years of age to remain on their parents insurance policy — contributed to 20 percent of that increase.

But other factors are also contributing to the rising costs of health care. They include the prices of new technologies, research and development for new prescription drugs and the proliferation of chronic diseases like diabetes.

The aging of the baby boom generation is also placing a tremendous strain on the health care system, as baby boomers have begun qualifying for Medicare this year. The survey found that with better treatments and drugs, they may live longer than previous generations and impose huge costs on the system as they age.

The White House, seeking to limit damage from the report, issued a statement on its blog in advance of the reports’ release, accusing it of, “looking backwards.”

“When we look to the future we know that The Affordable Care Act will help make insurance more affordable for families and businesses across the country, ” wrote Nancy- Ann DeParle, the White House Deputy Chief of Staff.

White House spokesman Jay Carney later defended the provision of the Affordable Care Act allowing 26-year-olds to stay on their parents insurance policies. “That has already had this tremendous impact on young people in America, which we obviously think is very positive,” he said. Most other provisions of the Affordable Care Act will not take effect until 2014.

The survey suggests that if costs are going to come down, people will need to live healthier lives. Health information technology will need to be improved, as will efficiency. The survey also calls for greater consumer involvement in health care such as those provided in health reimbursement accounts, where employers contribute to a health account managed by the employee. But the report also acknowledged deep political differences over those accounts, as well as over other proposed solutions.

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German Parliament Passes Bailout Expansion; European Markets Fail to Rally While U.S. Futures Pare Losses

Other European markets have failed to rally. U.S. futures turned on the news to positive territory.

One banker commented that despite the vote in favor to expand rescue funds there is still no clarity and feeling of immediate rescue.

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