Friday, July 29, 2011

Disturbing Job Ads: 'The Unemployed Will Not Be Considered'

Still waiting for a response to the 300 resum├ęs you sent out last month? Bad news: Some companies are ignoring all unemployed applicants.
In a current job posting on The People Place, a job recruiting website for the telecommunications, aerospace/defense and engineering industries, an anonymous electronics company in Angleton, Texas, advertises for a "Quality Engineer." Qualifications for the job are the usual: computer skills, oral and written communication skills, light to moderate lifting. But red print at the bottom of the ad says, "Client will not consider/review anyone NOT currently employed regardless of the reason."
In a nearly identical job posting for the same position on the Benchmark Electronics website, the red print is missing. But a human resources representative for the company confirmed to HuffPost that the The People Place ad accurately reflects the company's recruitment policies.
"It's our preference that they currently be employed," he said. "We typically go after people that are happy where they are and then tell them about the opportunities here. We do get a lot of applications blindly from people who are currently unemployed -- with the economy being what it is, we've had a lot of people contact us that don't have the skill sets we want, so we try to minimize the amount of time we spent on that and try to rifle-shoot the folks we're interested in."

What Happens if We Don't Raise the Debt Ceiling?

So the tone of my posts railing against default seems to have conveyed one of two false impressions to many of my readers:  that I believe there is now a 100% chance that we will fail to increase the debt ceiling; and/or that I believe a failure to raise the debt ceiling will be a catastrophe on par with 6-mile asteroids and volcanic eruptions the size of modern Iran.

Since neither of these is the case, I thought it was probably time to write down what might unfold over the next few days.

I'll start by saying, however, that I have no idea whether we'll get a deal or not.  There is one thing I'm sure of:  Obama is indeed bluffing with the veto threat, and badly.  They could send him a repeal of Obamacare attached to a debt ceiling increase, and he'd sign it.  He is not going to endanger our credit rating, or social security checks, in order to prove a point.

Beyond that, I have no idea what is going to happen politically.  Either the GOP is going to pass the Boehner bill, go into conference with the Senate, and come out with something Obama will sign--or they won't.  I tend to think they will because it would be so damn crazy not to.  On the other hand, I thought Democrats were going to back off on health care because it was so obviously career suicide to pass the thing.  And I was right--it was career suicide.  But they passed it anyway.  After a certain point, these things take on a life of their own: it's hard to back down when you're so publicly committed--and when something you want so badly feels like it's almost in reach.  So who knows.

Then there's the wild card: will the GOP old guard do a deal with the Democrats if the tea party won't play ball?  I don't know.  It would cost them their jobs, but it would be the right thing to do. But it's hard to get people to do the right thing when it will cost them their jobs.

Thursday, July 28, 2011

Ghost Towns Popping Up All Over America

Vast swathes of the U.S. countryside are emptying and communities becoming ghost towns as rural America now only accounts for just 16 per cent of the population.
The 2010 census results suggest that by 2050 many of these areas could shrink to virtually nothing as businesses collapse and schools close.
This dramatic population implosion is the culmination of a century of migration to cities, as in 1910 the share of rural America was at 72 per cent. 
n 1950 the countryside remained home to a majority of Americans, amid post-World War II economic expansion and the baby boom.
However, once busy areas have been abandoned, in South Dakota for example, the town of Scenic is up for sale for $799,000 as today just eight people live there.

Wednesday, July 27, 2011

Federal Reserve Audit: A FREE 16 Trillion to..

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places


Tuesday, July 26, 2011

Don't Believe in A Default?

I, too, can't believe that a default, even a short-lived one, is in the cards. But is that because we can't believe it, or can't bring ourselves to believe it, simply because such an event is unfathomable based on history and the might of the United States.

All of which got me thinking: Just five years ago, who would have believed that:

The global economy would plunge into its worst slump since the Great Depression.
The global financial system would be brought to the brink of collapse.
Bear Stearns Cos. would disappear from the Street, Lehman Bros. would fail, and Merill Lynch & Co. (the banker with the bull logo) would be sold to Bank of America.
The American dream would be shattered as the U.S. housing market melted down and foreclosure became an oft-heard word.
Countries such as Greece, Ireland and Portugal would be deadbeats, and the 17-member euro zone in tatters.
The U.S. dollar would become an also-ran, and the Canadian dollar, then just above 88 cents, closing in on its modern-era high of $1.10 U.S.
That GM and Chrysler would file for bankruptcy protection.
That more than 200 million people would be unemployed globally, according to the International Labour Organization.
That global interest rates would remain so low - near zero in the United States - for so long.
That "bailout" would become a household term.

The Republicans and Democrats continue to squabble today as the clock ticks ever more loudly, with no deal in sight. And perhaps the markets need to adjust their willing suspension of disbelief. 


Monday, July 25, 2011

10 Facts Of American Misery

The following are 10 facts about the financial condition of American families that will blow your mind.....

#1 Only 58 percent of Americans have a job right now.

#2 Only 56 percent of Americans are currently covered by employer-provided health insurance.

#3 The median yearly wage in the United States is $26,261.

#4 The average American household is carrying $75,600 in debt.

#5 Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.

#6 At this point, American families are approximately 7.7 trillion dollars poorer than they were back in early 2007.

#7 The poorest 50% of all Americans now own just 2.5% of all the wealth in the United States.

#8 According to one study, approximately 21 percent of all children in the United States were living below the poverty line in 2010.

#9 Today, there are more than 44 million Americans on food stamps, andnearly half of them are children.

#10 According to Newsweek, close to 20 percent of all American men between the ages of 25 and 54 do not have a job at the moment.

So what is causing all of this?

Where in the world did all of the good jobs go?

Well, the truth is that millions of them have been shipped overseas.

Our politicians promised us that merging our economy with the economies of other nations where it is legal to pay slave labor wages to workers would not create more unemployment inside America.

They were dead wrong.

Now we are being told that we just need to accept a lower standard of living.


Friday, July 22, 2011

EU Debt Restructuring Leads to Bailout Euphoria / Silver to Double to $100 Says Citigroup

“If the final rally in the last bull market repeated then we can expect $100 over the long term,” Tom Fitzpatrick and two other analysts wrote. “While the high so far this year was at the same level as the peak in January 1980, we are not convinced that the long-term trend is over yet.”

Most institutional players and Wall Street banks have been bearish on silver and have called the silver market wrong for years.

Some have very large concentrated short positions which have been investigated by the CFTC and were likely “talking their book.”

Therefore, it is very unusual to see such a bullish call from a major bank and suggests that at least some of the major banks see the writing on the wall regarding much higher silver prices. They are likely positioning themselves accordingly.

This means that the banks with concentrated short positions, such as JP Morgan, may soon see their silver positions incur even greater losses and we may see the much heralded short squeeze propel silver to much higher prices.

Our long held target for silver of $140 per ounce, the real inflation adjusted high from 1980, remains viable and becomes more likely..


Thursday, July 21, 2011

Proof: The Federal Reserve Is A Private Enterprise

"As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.


Wednesday, July 20, 2011

Obama's Plan Giving Unlimited Power To The Federal Reserve

Feds Preparing For US Default

That giant whooshing, and humming, sound you hear are all the printers at the basement of Marriner Eccles getting refills and start the warm up process. Because according to the Fed Charles Plosser the Federal Reserve is actively preparing for the possibility that the United States could default. Which can only mean one thing: an immediate paradrop of millions of $100 bricks to every man woman and child in the US since as we all know by know Tim Geithner has repeatedly confirmed the Treasury has absolutely no default plans. None.

Per Reuters:

Philadelphia Federal Reserve Bank President Charles Plosser said the Fed has for the past few months been working closely with Treasury, ironing out what to do if the world's biggest economy runs out of cash on August 2.

"We are in contingency planning mode," Plosser told Reuters in an interview at the regional central bank's headquarters in Philadelphia. "We are all engaged ... It's a very active process."

Plosser said his "gut feeling" was that President Barack Obama and Congress will come to an agreement to increase the Treasury's borrowing authority in time to avert a default on government obligations.

And in addition to the warming up, the Fed is also engaging in the following:


The Euro And The Dollar Could Blow Up Simultaneously, Game Over

I will admit that almost all of the market pros on television would blow this possibility off by pointing to the recent performance of the US bond market. However, the stars are lining up for the possibility of the most incredible economic implosion in recorded history. Both the United States and the European Union have about two weeks to make difficult political decisions or face the implosion of their currencies. On Thursday, the European Union must agree upon a plan to contain the contagion that is spreading like a wild fire, and this will have to rely of Germany putting up most of the capital on the deal. The United States has to reach an agreement on the debt ceiling debate and Washington appears to be getting more polarized by the day.

Although the outcome at stake will most likely warrant a political solution, the possibility of a simultaneous collapse of the dollar and the euro is incredible to comprehend but not impossible. The global economy would vaporize. Every stock market in the world would collapse.

Just about every bank in the world would have enough exposure to euro zone and US debt that they would implode right away. Even banks that were not exposed would likely get destroyed as bank runs would spread faster than the banks could analyze their exposure. Without banks, businesses cannot finance anything, so they would all collapse soon after. With no banks and no businesses, there is no employment.

Tuesday, July 19, 2011

Threats: Raise The Debt Limit Or Al Qaeda Will Attack!

As America’s economic stagnation continues largely unchanged in the face of a looming federal government debt crisis, federal counterterrorism intelligence officials and other authorities told Homeland Security Today the nation’s security increasingly is being put at risk, making the US at this moment in time a target for a major attack.

“Under Osama Bin Laden, Al Qaeda’s goal had been to find a way to attack us in a way that would hurt us economically – and I mean really hurt us. So if Al Qaeda still wants to slam us economically, now is the time to do it,” said one of the US counterterrorism officials who has studied the terrorist network’s capabilities to cause America grievous economic damage.

This and other officials said on background because of the sensitivity of their positions that the time has never been better for Al Qaeda “or any of its capable franchises” to attack in a way that would directly or indirectly result in not only a potentially debilitating economic blow to the country, but an economic collapse of some sort that would ripple around the world, especially in Europe,” another said.

Indeed. Federal Reserve Chairman Ben Bernanke just told Congress that “the [US] Treasury security is viewed as the safest and most liquid security in the world, and the notion it would become suddenly unreliable and illiquid would throw shockwaves through the entire global financial system.” 

Monday, July 18, 2011

The Dollar Is Over

The death of the dollar will be the largest single event in human history. This collapse will be the first event to dramatically effect every human being on the planet. Few people realize the dramatic impact this event will mean to every single aspect of their lives. To those of you that do realize the enormity of this cataclysmic event,it is hard not to watch the kettle boil. While we do our best to become aware and prepared for this event,the dollar chart is the one chart everyone watches. I would contend that while we watch the dollar chart,it is not the one we should be really watching. The reason for this is that it is measuring a one crappy fiat currency against other crappy fiat currencies. Even in this relative weak race to the bottom,the dollar stinks. As gold pushes through $1600,it is a truer measure of the declining value of ALL currencies. Still the dollar chart is significant simply because it is King Dollar.
  • If not for our criminal financial oligarchs funneling dollars into our markets,the dollar would be dead.
  • If not for our drug kingpins funneling dollars into our markets,the dollar would be dead.
  • If not for our petro dollar confidence game,the dollar would be dead.
  • If not for our bullying military industrial complex plundering the assets of the world,the dollar would be dead.
  • If not for our corporate vampire squids harvesting the spoils of empire,the dollar would be dead.
  • If not for the intense manipulation of the markets and statistics like inflation and unemployment,the dollar would be dead.
  • If not for all of you that keep your wealth in any paper asset,the dollar would be dead.
John Lennon lead a non violent,non compliant revolution against the Vietnam War. He said that,“War is Over! (If you want it.)”This simple message showed how all of the Elite’s power to spread debt and death is only possible through our active or passive support of their machine. Not one bullet will be fired if men did not actively or passively support the war machine. Not one enslaving dollar would exist,if people did not actively or passively support the dollar paradigm. (All money is debt. If all debt was paid off there would not be one dollar in existence.)

Sunday, July 17, 2011

Amid Privacy Fears, Police Across the Nation Will Roll Out Face-Recognizing iPhone Tech This Year

A controversial piece of facial recognition technology (and a PopSci “Best of What’s New 2010” alum) is rolling out in police stations across the country this fall, and naturally not everyone is happy about it. The Mobile Offender Recognition and Identification System (MORIS) uses an augmented iPhone to snap pictures of faces, scan fingerprints, and even to image irises, and then combs through police databases looking for matching identities. This, understandably, has privacy and civil liberties advocates crying foul.

The MORIS device attaches to the back of an iPhone, adding roughly 1.75 inches to the thickness of the smartphone. Police officers armed with the tool can take a photo of a person’s face from about five feet away, or scan his or her iris from about six inches, and wirelessly beam that data to law enforcement databases elsewhere to look for a match. It can also perform remote fingerprint matching.

PIMCO’s Bill Gross: “The U.S. National Debt Is $100 Trillion, We Are In Worse Financial Shape Than Greece” (Video)

Friday, July 15, 2011

Treasury To Stop Funding Its Market Manipulation Fund To Delay US Bankruptcy

After pillaging the G Fund and Civil Service Retirement and Disability Fund (CSRDF), aka the Government retirement funds, Tim Geithner was just forced to resort to the final debt ceiling extension measure: suspending reinvestment in the Exchange Stabilization Fund, better known as the mechanism by which the Treasury manipulates the stock, bond and FX markets, often times indirectly (thank you Brian Sack and Citadel fat pipe) and on occasion with CIA assistance.

Free market... no more plunge protection team...

More At Heading Above 

The 9/11 Attacks and the Black Eagle Trust Fund

If QE3 Happens: Gold to $5000-Silver to $1000

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save - Spain and Italy - though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe's currency union.

On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody's to warn of a "very small but rising risk" that the world's paramount power may default within two weeks. "The unthinkable is now thinkable," said Ross Norman, director of

Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. "Deflationary risks might re-emerge, implying a need for additional policy support," he said.

The bar to QE3 - yet more bond purchases - is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.

Fuelling the blaze, the emerging powers of Asia are almost all running uber-loose monetary policies. Most have negative real interest rates that push citizens out of bank accounts and into gold, or property. China is an arch-inflater. Prices are rising at 6.4pc, yet the one-year deposit rate is just 3.5pc. India's central bank is far behind the curve.

"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.

"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money." 


Thursday, July 14, 2011

Collapse Will Cause Governments to Change Rules

With gold nearing $1,600,silver making its way back towards the $40 level, Europe in turmoil and serious concerns about the United States, today King World News interviewed one of the greats, Felix Zulauf of Zulauf Asset Management. When asked if he was surprised about gold breaking out to new highs during the summer period Zulauf stated, “Well it was a little bit surprising because the technicals were pointing to some further correction and the correction was essentially a sideways affair, but the fundamentals are still very bullish.

I mean we have negative real interest rates in virtually all of the major currencies and that is historically a very bullish underpinning of the gold market and that’s why it is not so surprising. It’s just that it didn’t really react to the overextended technicals leading to some downside reaction, it was more a sideways affair and this really shows you how strong the (gold) market really is.”

When asked about where the financial world is headed Zulauf had this to say, “I really don’t know because we have never seen, me in my lifetime I have never seen anything like this, and I think not even in the last 100 years has anything like this happened. We have had several countries that were indebted and went down the drain in the emerging world, and those emerging economies and governments, they have always eventually done the right thing.

They have let market participants go bankrupt, they have reformed the currency, they have cut the debt down to a new operational level, but it was very, very painful and a lot of people lost all of their money. Because they did that, they have always come back strongly. For instance Brazil today is a very strong economy, but fifteen years ago it was bankrupt. It (Brazil) cut out the debt, it created a new currency and started all over again.


Top Companies Made 77 Billion. Paid No TAXES

Dagong is likely to downgrade US rating

BEIJING- The US' sovereign credit rating is likely to be downgraded regardless of whether the US Congress reaches an agreement on raising its statutory debt limit, Chinese rating agency, Dagong Global Rating Co Ltd, said on Monday.
"If the debt limit is raised and the public debt continues to grow, it will further damage the US' debt-paying ability, which is a key factor in Dagong's evaluation, and we will consider lowering its ratings accordingly," said Guan Jianzhong, chairman and CEO of Dagong.
"If the raised limit fails to pass and the US faces default, the rating will be immediately and substantially downgraded," he said.
According to Guan, the downgrading is really just "a matter of time and extent".
Guan spoke after the US Treasury Department warned that the nation will exhaust its borrowing authority under the $14.29 trillion debt limit on Aug 2 and urged Congress to raise the statutory debt limit "to avoid the catastrophic economic and market consequences of a default crisis".
The three major international rating agencies, Moody's Investors Service Inc, Fitch Inc and Standard & Poor's Financial Services LLC (S&P) each warned in June that they would downgrade the US sovereign credit rating in the event of a default.
The country's rating now stands at A+ in domestic and foreign currency on Dagong's list, with negative outlooks to its future, much lower than the result of the US rating agencies.


Wednesday, July 13, 2011

Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars, In Tent Cities Or On The Streets

Economic despair is beginning to spread rapidly in America.  As you read this, there are millions of American families that are just barely hanging on by their fingernails.  For a growing number of Americans, it has become an all-out battle just to be able to afford to sleep under a roof and put a little bit of food on the table.  Sadly, there are more people than ever that are losing that battle.  Tonight, tens of thousands of formerly middle class Americans will be sleeping in their cars, even though that is illegal in many U.S. cities.  Tens of thousands of others will be sleeping in tent cities or on the streets.  Meanwhile, communities all over America are passing measures that are meant to push tent cities and homeless people out of their areas.  It turns out that once you lose your job and your home in this country you become something of an outcast.  Sadly, the number of "outcasts" is going to continue to grow as the U.S. economy continues to collapse.
Most Americans that end up living in their cars on in tent cities never thought that it would happen to them.
An article in Der Spiegel profiled one American couple that is absolutely shocked at what has happened to them....

Tuesday, July 12, 2011

The Great Unravelling

Friday's jobs report threw more cold water on so-called recovery. Since 2008, Main Street America's been in  Depression.
Conditions have worsened, not improved, because of force-fed austerity, not badly needed stimulus to create jobs, reemploy people, and revive real economic growth, not the illusory kind since the National Bureau of Economic Research (NBER) officially declared June 2009 the end of recession.
At 11:05AM on July 8, Obama commented from the Rose Garden, doing what he does best - dissembling and distorting reality to conceal what's going on and why.
His best shot was saying:
"We still have a long way to go and a lot of work to do to give people the security and opportunity that they deserve."

Monday, July 11, 2011

Even Dollar Stores Struggling In ‘Obama Depression’

More stores across the U.S. that offer deeply-discounted products are seeing their sales decline after years of growth amid America’s “Great Recession” — and one analyst said on Monday it’s another sign of even deeper downturn.

While the demand at stores like the 99-Cent Store or Dollar Tree is still relatively high, the biggest chains in the nation have fallen short of Wall Street’s expectations for several months, a trend that may prove even more ominous for the economy at large.

“I think what’s going on in those stores is that we are in a depression for 80 percent of Americans,” top retail analyst Howard Davidowitz told KNX 1070.

America’s three largest discount chains — Dollar General Corp., Family Dollar Stores Inc. and Dollar Tree Inc. — all recently missed their quarterly earnings targets.

Davidowitz pointed to the weakness of the dollar and a gloomy consumer outlook as some of the factors behind the stores’ slump.

“In those stores, somebody comes in with $12 to do all their shopping,” said Davidowitz. “The person who used to come in with $12 now comes in with $8.”


Smart Meters A Government Snoop

Saturday, July 9, 2011

Dines - Now Predicts Silver to Reach $300 - $500 an Ounce

With gold and silver on the move along with stocks, today King World News interviewed legendary James Dines, author of The Dines Letter. When asked where he sees things today Dines stated, “The central investing fact in the world today is the coming end of the age of debt. The US government is now borrowing $40 out of every $100 it spends. China is lending the $40 to America perhaps and then with the income from interest, plus the junk they sell to Walmart they buy land in America with it.
The other side says if there is no agreement (on the debt ceiling) by Congress, the US will actually run out of money to pay its bills including paying interest on its debt worldwide. The mainstream press has reported all of the gory details of that really doomsday possibility, which is a straight lie. The government can pay the interest and its military first and let other stuff wait.”

Dines continues:

“Another crucial fact is governmental unlimited paper printing mania, unlimited because there’s been no link to gold which otherwise would have restricted it when the gold ran out, which is why the world’s debts have risen out of control. In fact the whole world to me is on the verge of a final scramble to lock up hard assets as part of a flight out of paper money.
China gets it by buying vast tracts of farmland in Africa, even America’s midwest, not to be resold at a profit but to be held forever by China’s government. Now under everybody’s very eyes the system of capitalism is being transfigured into a monopoly game, out of paper into things. So that’s logically where to invest for the future.”

Friday, July 8, 2011

30 Reasons To Get Out Of Real Estate And Into REAL Assets

You can fool some of the people some of the time,but not all of the people all of the time.” –Abraham Lincoln
We are in a major paradigm shift that like a tsunami starts slowly and ends with the landscape wiped clean. The paradigm shift is from paper assets to real tangible assets. This shift happens every generation or so,where one asset class dramatically outperforms the other. The 40′s and 50′s paper assets like stocks and bonds were the place to be. In the 60′s and 70′s real assets like oil,cattle and precious metals were the best performing assets. In the 80′s and 90′s paper assets once again reigned supreme. Since 2000 there has been a real rush form paper assets to real assets once again. This paradigm shift will be much more dramatic than anything we have seen in our life time. This asset shift is going to coincide with a major shifts in demographics,politics,and world power.
The collapse of paper assets will not only include stocks and bonds,it will be the collapse of the entire basis of our society,the dollar. The dollar is the nexus of all commerce and is our way of life. The almighty dollar has terminal cancer and it will not recover to live to see the next paradigm. This shift from paper assets and real assets is driven by money/debt creation. Since our dollar IS debt,it is necessary for more debt to be created every year in excess of the debt AND interest accrued the year before. The majority of this debt was created during boom times when no one feared debt. When the inevitable slow down came,the Elite created more money/debt to keep the system going. This new money/debt creation,relative to the amount of real goods and services in a slowing economy,produces more inflation which naturally boosts the value of real assets.


Thursday, July 7, 2011

15 Food Companies That Serve You 'Wood'

The recent class-action lawsuit brought against Taco Bell raised questions about the quality of food many Americans eat each day.
Chief among those concerns is the use of cellulose (read: wood pulp), an extender whose use in a roster of food products, from crackers and ice creams to puddings and baked goods, is now being exposed. What you're actually paying for -- and consuming -- may be surprising.

Cellulose is virgin wood pulp that has been processed and manufactured to different lengths for functionality, though use of it and its variant forms (cellulose gum, powdered cellulose, microcrystalline cellulose, etc.) is deemed safe for human consumption, according to the FDA, which regulates most food industry products. The government agency sets no limit on the amount of cellulose that can be used in food products meant for human consumption. The USDA, which regulates meats, has set a limit of 3.5% on the use of cellulose, since fiber in meat products cannot be recognized nutritionally.

Middle Class Unrest To Hit U.S. (Video)

Zbigniew Brzinski, who forty years ago wrote of a highly controlled future society where the population would be subjugated by a technocratic elite, appeared on MSNBC’s Morning Joe yesterday to predict that middle class unrest caused by economic disenfranchisement would soon hit America.

“I don’t want to be a prophet of doom — and I don’t think we are approaching doom — but I think we’re going to slide into intensified social conflicts, social hostility, some forms of radicalism, there is just going to be a sense that this is not a just society,” Brzezinski said, adding that civil unrest would begin when the lower middle class becomes severely affected by the economic fallout and rising unemployment.

The former National Security Advisor predicted “really serious international turmoil” as a result of the United States, Europe and Japan, the three traditional pillars of global economic strength, struggling with deep financial crises.

Monday, July 4, 2011

New Program: $50,000 in Fellow Taxpayer Money if You Don't Pay Your Mortgage AND (Preferably) Don't Have a Job

In the big picture, $1 billion is a pittance (what a billion amongst friends), but the latest federal program to staunch the housing disaster is like all the others - troubling, unfair, and bemusing all at once. Here is the kicker in this one, you only qualify if you lost income (i.e. thru job loss, underemployment etc). Which I assume would make it hard to make the mortgage payment... but what do I know.

Essentially if you borrow $50K from the government your fellow citizen (interest free), and keep your payments on time... each year 20% of the loan is forgiven. Make 5 years of payment and you get handed $50,000 for free, for acting like anyone else who pays their mortgage. Step right up...

Via SmartMoney:

For the roughly four million homeowners who have fallen behind on their mortgage payments, the federal government is offering yet another remedy: free money to catch up on their loans.
The effort, called the Emergency Homeowners Loan Program, is the latest in the federal government's efforts to slow down the flood of foreclosures a necessary step to a meaningful recovery in the housing market, says a Department of Housing and Urban Development official. For people who have lost their jobs, the $1 billion program offers loans of up to $50,000 that don't actually need to be repaid, if applicants meet certain requirements.


Sunday, July 3, 2011

USDA Reports Food Shortages: Wall Street 'Caught Off Guard' by Severity

Several recent headlines indicate that food prices will continue their swift climb upward.  These troubling new reports show that agriculture production and stored grains are critically low and experts are now predicting food shortages.

Look at a few of today's mainstream headlines: Drought threatens global rice supply in the India Times; VA farmers say heat taking toll on crops, Associated Press; Severe food shortage follows lack of rainfall in Syria; and, finally, Corn prices bolt as USDA downsizes crop estimates, which states that, "Commodity professionals were caught off guard Wednesday by a U.S. Department of Agriculture report showing 1 million fewer acres of corn planted this year than earlier projected, and almost 300 million fewer bushels of corn in storage." And these articles don't begin to address crops being damaged by the toxic rain from the Gulf oil disaster.

We are back to recession economics and rapidly heading toward a deeper, longer “Third Depression.”  With all recent economic indicators setting new record lows and deficits at record highs, this ship is only going one way folks, down, down to Chinatown.  This WTC-Building 7-style-controlled-demolition of the U.S. economy has long been engineered by the borderless banksters and will likely continue to collapse at the rate of free-fall gravity.  With all of the manufactured confusion it may be difficult to know where best to invest your limited assets, but it seems to be clear that Food is on the march.



Saturday, July 2, 2011

Did Treasury Just Strategically (Intentionally) Default?

It sure looks like they did.
Here's the DTS (daily cash statement) for Treasury.
And here's the problem with it:

Note that the pink line did not move much.  In fact, it went down.
It should have gone up - a lot - because the "Trust Funds" (you know, Social Security and Medicare?) that you folks on the left keep bleating about being "money good" and "actual debt" had a coupon payment from Treasury due yesterday.
That's a default, and it instantaneously destroys both the claim that such activity is not "selective" or, if you prefer, "strategic" and it also destroys the argument that Medicare and Social Security Trust fund "debt" - not just public debt - is subject to the 14th Amendment and thus is "protected" against the Treasury choosing to blow it off.
By the way if you're curious about how much this should amount to (~$90 billion, more or less) have a look at the June 30th, 2010 DTS statement.
Oh, and as for Geithner?  He said that any default on any obligation would trigger an immediate market panic.  Well, this did - straight up on the S&P and DOW.  So much for Timmy's lies.
Have a nice day.



Friday, July 1, 2011

Fukushima Spews, Los Alamos Burns, Vermont Rages & We Almost Lost Nebraska

Humankind is now threatened by the simultaneous implosion, explosion, incineration, courtroom contempt and drowning of its most lethal industry.
We know only two things for certain:  worse is yet to come, and those in charge are lying about it—at least to the extent of what they actually know, which is nowhere near enough.
Indeed, the assurances from the nuke power industry continue to flow like the floodwaters now swamping the Missouri Valley heartland.
But major breakthroughs have come from a Pennsylvania Senator and New York’s Governor on issues of evacuation and shut-down.  And a public campaign for an end to loan guarantees could put an end to the US industry once and for all.
FUKUSHIMA:  The bad news continues to bleed from Japan with no end in sight.  The “light at the end of the tunnel” is an out-of-control radioactive freight train, headed to the core of an endangered planet.
Widespread internal radioactive contamination among Japanese citizens around Fukushima has now been confirmed.
Two whales caught some 650 kilometers from the melting reactors have shown intense radiation.


How Bankers Own the Earth And Then Some…

Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them,but leave them the power to create money,and with the flick of the pen they will create enough deposits to buy it back again. However,take away from them the power to create money and all the great fortunes like mine will disappear and they ought to disappear,for this would be a happier and better world to live in. But,if you wish to remain the slaves of bankers and pay the cost of your own slavery,let them continue to create money. -Josiah Stamp

Financial Austerity to Greece is what Duct Tape is to Rape. It is just another fancy academic phrase to mask the true horror of what is happening to Greece. (And what will soon happen here.) This is like how “quantitative easing”is another name for forgery. You know,the act of counterfeiting a currency that was once punishable by death. Financial austerity is simply,more for the bankers and less for everyone else. Portfolios of the Elite must perform over all other human need. These bailouts come at a heavy price for the states that succumb to this financial rape. Real state assets and lands are sold at fire sale prices for to pay for debts created out of thin air. Real people’s lives will be destroyed to pay for debts created out of thin air. This of course is the true harvest time for the criminal bankers and their political enablers make it happen,by selling out their fellow citizens.
Many think that the bankers make money by lending money,but the real objective is the control they gain when when they confiscate Real assets with money that they never had.


Middle Class Jobs Are Gone

"The American dream is dead for the majority of America," financial guru Suze Orman told Forbes last year, speaking about her upcoming book "The Money Class."

The dream she was referring to isn't a Cinderella story. Rather, Orman believes the hope of someday owning a home, of working one job for life and retiring at 65 has been crushed by the financial crisis. "The middle class has disappeared," she said. "Many of the millions of jobs lost I don't think are coming back. I am really afraid for the majority of Americans today."
Are stable, well-paying middle-class jobs an endangered species? Economists say: Sort of.
"The idea that one can have a single-earner family, get a good job, keep it for life and have a comfortable living is all but gone," says Kevin Hallock, professor of labor economics and director of the Institute for Compensation Studies at Cornell University. "Long-term job stability is declining, and there aren't good unionized jobs like there once were."