The EU/IMF raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should "run for the hills" said investor Jim Rogers, chairman of Rogers Holdings, on "Squawk on the Street" Thursday.

Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned.

"What more do you need to know? Please, you better hurry, you better run for the hills. I'm doing it anyway," Rogers said. "I want to make sure that I don't get trapped. Think of all the poor souls that just thought they had a simple bank account. Now they find out that they are making a 'contribution' to the stability of Cyprus. The gall of these politicians."

"If you're going to listen to government, you're going to go bankrupt very quickly," he added.

"I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent," he said. "The IMF has said 'sure, loot the bank accounts' the EU has said 'loot the bank accounts' so you can be sure that other countries when problems come, are going to say, 'well, it's condoned by the EU, it's condoned by the IMF, so let's do it too.'"

Jim Rogers, a voice closely followed by market participants, began shorting financials, home builders and Fannie Mae in 2006, and is famous for co-founding the Quantum Group of Funds with billionaire George Soros. Quantum is famously regarded for "breaking" the Bank of England and forcing a devaluation of the pound.

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The rest of the article and video of the interview.

Greece on Friday unleashed a fierce attack on its European Union partners, accusing them of creating a “psychology of looming collapse” a day after they pledged support for the country’s crisis-hit government.

George Papandreou, Greek prime minister, said that, in the eurozone’s first big test, Greece had become “a laboratory animal in the battle between Europe and the markets”.

In a televised address to his cabinet, he criticised EU members for sending “mixed messages about our country . . . that have created a psychology of looming collapse which could be self-fulfilling”.

Mr Papandreou blamed the European Commission for failing to crack down on the previous conservative government’s “criminal record” in falsifying statistics. “This has undermined the responsibility of the European institutions with international markets,” he said.

Read more: Financial Times.

The United Nations climate panel faces a new challenge with scientists casting doubt on its claim that global temperatures are rising inexorably because of human pollution.

In its last assessment the Intergovernmental Panel on Climate Change (IPCC) said the evidence that the world was warming was “unequivocal”.

It warned that greenhouse gases had already heated the world by 0.7C and that there could be 5C-6C more warming by 2100, with devastating impacts on humanity and wildlife. However, new research, including work by British scientists, is casting doubt on such claims. Some even suggest the world may not be warming much at all.

“The temperature records cannot be relied on as indicators of global change,” said John Christy, professor of atmospheric science at the University of Alabama in Huntsville, a former lead author on the IPCC.

The doubts of Christy and a number of other researchers focus on the thousands of weather stations around the world, which have been used to collect temperature data over the past 150 years.

These stations, they believe, have been seriously compromised by factors such as urbanization, changes in land use and, in many cases, being moved from site to site.

Christy has published research papers looking at these effects in three different regions: east Africa, and the American states of California and Alabama.

“The story is the same for each one,” he said. “The popular data sets show a lot of warming but the apparent temperature rise was actually caused by local factors affecting the weather stations, such as land development.”

[…]

“We concluded, with overwhelming statistical significance, that the IPCC’s climate data are contaminated with surface effects from industrialisation and data quality problems. These add up to a large warming bias,” he said.

Such warnings are supported by a study of US weather stations co-written by Anthony Watts, an American meteorologist and climate change sceptic.

His study, which has not been peer reviewed, is illustrated with photographs of weather stations in locations where their readings are distorted by heat-generating equipment.

Some are next to air- conditioning units or are on waste treatment plants. One of the most infamous shows a weather station next to a waste incinerator.

Watts has also found examples overseas, such as the weather station at Rome airport, which catches the hot exhaust fumes emitted by taxiing jets.

In Britain, a weather station at Manchester airport was built when the surrounding land was mainly fields but is now surrounded by heat-generating buildings.

Terry Mills, professor of applied statistics and econometrics at Loughborough University, looked at the same data as the IPCC. He found that the warming trend it reported over the past 30 years or so was just as likely to be due to random fluctuations as to the impacts of greenhouse gases. Mills’s findings are to be published in Climatic Change, an environmental journal.

“The earth has gone through warming spells like these at least twice before in the last 1,000 years,” he said.

A Times On Line article.

GORDON BROWN’S carefully laid plans for a G20 deal on worldwide tax cuts have been scuppered by an eve-of-summit ambush by European leaders.

Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

“I will not let anyone tell me that we must spend more money,” she said.

The rest of the article.

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The government of Iceland today became the first to be effectively brought down by the credit crunch. [...]

After several nights of rioting over the financial crisis, Prime Minister Geir Haarde, surrendered to increasing pressure and called a general election for May.

The global financial crisis hit Iceland, which has a population 320,000, in October, triggering a collapse in its currency and financial system under the weight of billions of dollars of foreign debts incurred by its banks

The economy is set to shrink 10 percent this year and unemployment is surging.

Critics wanted Haarde, the central bank governor and other senior officials to resign.

Some senior figures in his party have also said they favour an early election, but Haarde had up to now vowed to defy plunging popularity and stay on.

Protests had been held weekly since the crisis broke last year, but since Tuesday have been held every night.

On Thursday, police used teargas on demonstrators for the first time since protests against the North Atlantic island's entry into the NATO alliance in 1949. [...]

Latvia, Bulgaria and other European countries hit hard by the global economic meltdown have also seen unrest. _______________________________________________________________

http://www.youtube.com/wa...

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In the minutes from its last meeting, the central bank said it expects GDP to decline in 2009 and unemployment to rise into 2010.

NEW YORK (CNNMoney.com) -- The U.S. economy is likely to deteriorate further this year and unemployment will rise into 2010, according to the latest forecasts from the staff of the Federal Reserve.

This bleak forecast was presented to Fed policymakers when they met last month and lowered interest rates to near zero. Low interest rates are one key tool the central bank uses to try to spur economic activity.

According to the minutes from that meeting, the central bank is now predicting that gross domestic product, the broadest measure of economic activity will fall in 2009.

"I think that the Fed is really very scared right now -- like everybody else -- and they want to pull out all the stops," said David Wyss, chief economist for Standard & Poor's. The Fed indicated that most members at its meeting expected a slow recovery to begin in the second half of the year, but that unemployment would still rise "significantly" into 2010.

Employers cut 1.9 million jobs over the first 11 months of 2008, which took the unemployment rate up to 6.7%. The December report will be released by the Labor Department Friday and economists surveyed by Briefing.com expect a loss of 475,000 jobs and that the unemployment rate will rise to 7%, which would mark a 15-year high.

The Fed cited a multitude of problems dragging down the economy besides rising unemployment, including stock market declines, low consumer confidence, weakened household balance sheets and tight credit conditions. It said business spending is also likely to fall due to weak retail sales and the credit crunch.In addition, some members of the Fed expressed concerns that the economy could worsen even more than currently expected.

http://money.cnn.com/2009...

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The New York Times opened a profile of Klaus, 67, this week with a quote from a 1980s communist secret agent's report, claiming he behaves like a "rejected genius", and asserts there is "palpable fear" he will "embarrass" the EU.

But the real fear driving climate alarmists wild is that a more rational approach to the fundamentalist religion of global warming may be in the ascendancy - whether in the parliamentary offices of the world's largest trading bloc or in the living rooms of Blacktown.

As the global financial crisis takes hold, perhaps people are starting to wonder whether the so-called precautionary principle, which would have us accept enormous new taxes in the guise of an emissions trading scheme and curtail economic growth, is justified, based on what we actually know about climate.

One of Australia's leading enviro-sceptics, the geologist and University of Adelaide professor Ian Plimer, 62, says he has noticed audiences becoming more receptive to his message that climate change has always occurred and there is nothing we can do to stop it.

In a speech at the American Club in Sydney on Monday night for Quadrant magazine, titled Human-Induced Climate Change - A Lot Of Hot Air, Plimer debunked climate-change myths.

"Climates always change," he said. Our climate has changed in cycles over millions of years, as the orbit of the planet wobbles and our distance from the sun changes, for instance, or as the sun itself produces variable amounts of radiation. "All of this affects climate. It is impossible to stop climate change. Climates have always changed and they always will."

To understand the chaotic nature of climate change, we need to consider all the inputs - cosmic radiation, sun, clouds and so on, he said.

There was much more but essentially Plimer's message is that the idea humans cause climate change has become a fundamentalist religion which is corrupting science. It is embedded with a fear of nature and embraced principally by city people who have lost touch with nature.
[...]
Plimer says creationists and climate alarmists are quite similar in that "we're dealing with dogma and people who, when challenged, become quite vicious and irrational".

Read the entire article.

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