Wednesday, August 31, 2011

25 Signs That The Financial World Is About To Hit The Big Red Panic Button

In any event, global financial markets are paralyzed by fear right now. Nobody knows what is going to happen next, but many now fear that whatever does come next will not be good.

The following are 25 signs that the financial world is about to hit the big red panic button....

#1 According to a new study just released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession.

#2 Will Bank of America be the next Lehman Brothers? Shares of Bank of America have fallen more than 40% over the past couple of months. Even though Warren Buffet recently stepped in with 5 billion dollars, the reality is that the problems for Bank of America are far from over. In fact, one analyst is projecting that Bank of America is going to need to raise 40 or 50 billion dollars in new capital.

#3 European bank stocks have gotten absolutely hammered in recent weeks.

#4 So far, major international banks have announced layoffs of more than 60,000 workers, and more layoff announcements are expected this fall. A recent article in the New York Times detailed some of the carnage....

Monday, August 29, 2011

14 Conspiracy Theories That The Media Now Admits Are Conspiracy Facts

How many times have you heard the mainstream media dismiss certain points of view as "conspiracy theories"?  It seems as though one of the easiest ways to brush something off is to label it as something that only "conspiracy theorists" would believe.  Well, you know what?  A whole lot of the time the "conspiracy theorists" are right and the mainstream media is wrong.  In fact, we owe a great debt to "conspiracy theorists" because they will go places and investigate things that the mainstream media would never even touch.  The reality is that the mainstream media only tells us what the government and the big corporations want us to hear, and much of the time it is those in the alternative media that are left with the task of trying to figure out what the real truth is.  So don't look down on conspiracy theories or conspiracy theorists.  In a world where almost everything we are told is a lie, the truth can be very difficult to find.

The following are 14 conspiracy theories that the media now admits are conspiracy facts....

#1 Fukushima Uninhabitable

Back in April, I published an article entitled "Much Of Northern Japan Uninhabitable Due To Nuclear Radiation?"  At the time, almost everyone in the mainstream media was insisting that Fukushima was nothing like Chernobyl and that those that lived near Fukushima would be able to return to their homes fairly soon.

Well, it turns out that those of us that feared the worst were right after all.  Just consider the following quote from the New York Times....

Broad areas around the stricken Fukushima Daiichi nuclear plant could soon be declared uninhabitable, perhaps for decades, after a government survey found radioactive contamination that far exceeded safe levels, several major media outlets said Monday.

Saturday, August 27, 2011

Can SEC Declare Bank Holiday Monday?

If Hurricane Irene is as bad as some feared, traders have asked me if the SEC has the power to declare a bank holiday and delay the opening of trading on Monday for all exchanges.
The answer is yes. It's happened before: on 9/11/2001 (a Tuesday), SEC Chairman Harvey Pitt did halt trading the following Wednesday through Friday, and reopened Monday, September 17. 
Should they? I don't know, but it should be at least considered if there is significant damage.
This would greatly relieve the pressure on the NYSE to open Monday under what may be difficult circumstances. The NYSE has gone through great lengths to ensure a Monday open, keeping key officials in downtown hotels near the NYSE over the weekend. But with the mayor shutting down all public transportation — possibly into Monday — getting all but a skeletal crew for the floor together Monday may be impossible.

The Great Collapse Has Officially Begun

I’ve been warning of this for well over two years. My primary warnings were:

  • 1)   That 2008 was just a warm-up
  • 2)   That the REAL Crisis had yet to unfold
  • 3)   That the REAL Crisis would make 2008 look like a picnic
Well, the period I’ve been warning of is now here.  What’s happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.

Instead, this is a collapse of the entire US monetary and political system and the mentality of spending one’s way to wealth.

For 80+ years, the US has operated under a crony capitalist system in which politicians dole out political and economic favors to the chosen few whose bribes/donations funded their campaigns.

This system was aided and abetted by the US Federal Reserve, which dealt with any and all economic issues by printing more money. Whether it was the Asian Crisis, Long Term Capital Management, or the 2008 Crash, the Fed dealt with the issue by opening the floodgates and flooding the financial system with liquidity.

Aside from making moral hazard (the notion that those large firms who screwed up were never actually allowed to fail) the bedrock of the financial system, the Fed also blew a credit bubble which in turn funded bubbles in virtually every asset class: bonds, stocks, real estate, emerging markets, even some commodities.

Indeed, the vast majority of US economic growth over the last 40 years has been fueled by the Fed’s loose money policies. Bill King, an analyst and investor whom I admire, shared the below chart with me a while back. It charts US GDP growth in nominal terms (the dark blue line), the performance of the Dow Jones Industrial Average (the black line), and REAL GDP growth or growth that accounts for inflation (the light blue line).

Friday, August 26, 2011

JP Morgan is Foreclosing on the US Treasury

I am not making this up.
Here is the high level story: JP Morgan Chase and Northwest Trust foreclosed on a property in Hillsboro, Oregon. Treasury (more accurately, the IRS) has a tax lien on the property.

So this is pretty cheeky. The plaintiffs didn’t notify the IRS, who they claim was an existing junior lien holder, of the “sale”. Query what the IRS’s status is given the failure to give notice. So does JP Morgan want to own up to its error and pay the lien? Noooooo. THEY WANT TO FORECLOSE ON THE US GOVERNMENT. They are asking for the IRS to act in 30 days or go bye bye.

The compliant is silent on how the tax lien came about, but I thought as a general rule that tax liens were senior to mortgages. Reader input welcome.


Thursday, August 25, 2011

10 Things Citizen Spies Should Report To The Department of Homeland Security

1. Suspicious activity about 9-11: Something is very suspicious about the official version of the attacks of September 11th, 2001. First, corporate media restricts discussion of the events of 9-11, especially technical aspects like how a 47-story steel skyscraper (WTC Building 7) collapsed into its own footprint without being hit by a plane, steel turning to powder or molten liquid, or destroyed insider trading records of airline put options, among many other anomalies. The idea that investigating these mysteries is in any way harming the 9-11 family members is nonsense. Report the WTC lease holder, Larry Silverstein, to the DHS for pre-wiring WTC 7 for demolition. Report "Tricky" Dick Cheney for standing down when being told a plane was approaching the Pentagon.

WTC steel beams suspiciously turning to dust - Dr. Judy Wood
2. Bank looting: Somehow, the original bank bailout -- TARP in 2008 -- of $700 billion (which a large majority of the public opposed) turned into a mass looting of $16 trillion to prop-up failed banking institutions around the world. Somewhere in between was a massive stimulus, QE1, and QE2 that by all indicators only benefited the banksters as well. There has been no official authority given by the people's representatives for these transactions, yet the bank bailouts were clearly a jailhouse-raping of the American public. The people will suffer higher inflation, higher taxes, lost jobs, and less public benefits as a result. The ring-leading rapists are Ben Bernanke, Tim Geithner, Hank Paulson, Jamie Dimon, Lloyd Blankfein and others, presidents from both sides of the isle and nearly all of Congress. If you feel financially raped by the direct actions of these powerful banksters or their minions, immediately report these crimes to anyone who will listen.

3. Fraudulent foreclosures: The mortgage fraud scandal is indeed the biggest in human history. The involvement of mortgage brokers, ratings agencies, appraisers, robo signers, and every other type of criminality went right up the ladder to banks like Goldman Sachs, JP Morgan, and Bank of America. Some even employed real mafia tactics by breaking into people's homes. Now banks are scrambling to provide documentation, as it appears that people have been thrown onto the street without proof. 92% of NY foreclosures lacked proper documents, and that is just the tip of the iceberg for the rest of the nation. There should be a real full-scale investigation of the criminals running this operation at the highest levels. Instead, we see a few courageous people taking matters into their own hands, like the Florida couple who foreclosed on Bank of America.

Dees Illustration
4. Radiation cover-up: Ever since the Fukushima nuclear meltdown occurred, there seems to have been a concerted effort to minimize the severity of this ongoing catastrophe. While radiation levels are getting dangerously high, there are accusations of criminal negligence on the part of the EPA: "The EPA re-calibrated (rigged) Japan nuclear radiation monitoring equipment causing them to report lower levels of radioactive fallout after the Fukushima nuclear meltdown than what was detected before the disaster." Instead of acting as the public's watchdog on environmental health, the EPA increased the level of acceptable radiation despite all scientific evidence to the contrary. No level of additional background radiation is safe for human health. Those responsible for covering up what will become known as the most devastating holocaust of the Northern Hemisphere are complicit in crimes against humanity and must be reported.

5. Environmental devastation: The environment is being exposed to a full frontal assault by the corporate government. In addition to the exorbitant radiation already touched upon, everything from industrial to genetic pollution, water contamination, DNA alteration and human-animal hybrids, oil spills, atmospheric chemical spraying, pesticides, and much more are devastating our human habitat. No one in power is called to account for these outrages. Just the opposite: in all of these environmental crimes we'll find the government's seal of approval as they cover-up for their corporate friends. Which agency do we report this to, since the feds are the perpetrators?

Dees Illustration
6. Illegal wars: Report Barack Obama for war crimes. Normally war crimes involve more than a single individual. However, in the case of Libya, Obama acted alone without even consulting the people's...

Wednesday, August 24, 2011

US Government Asset Seizures on the Rise

The Wall Street Journal published a disturbing article earlier this week entitled “Federal Asset Seizures Rise, Netting Innocent With Guilty.”

You can already imagine the crux of the article.

In the United States, there are hundreds of regulations which authorize dozens federal agencies to confiscate private property– homes, cars, bank accounts, gold, company shares, and even personal effects.

Ironically, most Americans still think that they live in a country where you’re innocent until proven guilty. Nothing could be further from the truth, and it’s just another clear example of how the US Constitution has become a worthless piece of toilet paper for the federal government.

The Fifth Amendment states that “No person shall be… deprived of life, liberty, or property, without due process of law.” Tell that James Lieto, a New York businessman who was relieved of $392,000 when the armored car company used by his check-cashing firm was taken down by the FBI.

Lieto was innocent and not implicated in any wrongdoing, but the FBI took his money regardless as it just happened to be in the wrong place at the wrong time.

Last October, another businessman named Raul Stio was suspected of wrongdoing by the Treasury Department. The government seized over $150,000 from his account, yet in the 10-months that followed, Stio has still not been charged with a crime.

Tuesday, August 23, 2011

New Data Supports Previous Fairewinds Analysis, as Contamination Spreads in Japan and Worldwide

New Data Supports Previous Fairewinds Analysis, as Contamination Spreads in Japan and Worldwide from Fairewinds Associates on Vimeo.

When The Mob Becomes Violent

Today I was accosted by someone begging for money. I know... big deal, right? It's not an unusual occurrence anywhere in the world, especially here in the Philippines.

Begging is actually big business in Manila. Often small children are forced to work the streets by a 'begging syndicate,' and adults keep a watchful eye from a distance before confiscating the kids' proceeds. This is one of the lowest acts of humanity I can think of.

The person who approached me today, however, was not a child. He was a perfectly able-bodied, 17 or 18 year-old youth. He chased after me shouting, "My friend! My friend! You give me coins!" If you notice the language, he wasn't exactly asking... more demanding.

This is a mentality that I will never understand.

Yes it's unfortunate that there are people in the world who struggle to make a decent living for themselves and their families. But I firmly believe that tossing a few occasional coins is not going to solve their underlying problem.

Indeed, handouts encourage people to continue living on handouts instead of developing skills, working hard, and pulling themselves up from poverty. This makes the situation worse, not better.

It drives me crazy to see someone who clearly HAS the capability to make an honest living, yet refuses to do so... such as the young man who approached me today.

Monday, August 22, 2011

Bloomberg reveals massive corruption in the private Federal Reserve

When the mainstream media is reporting stories like this, you know it is so serious that it cannot be ignored, even if they wanted to.

Today Bloomberg has revealed that the “Wall Street Aristocracy” received a staggering $1.2 trillion in loans. Yes, you read that right: $1.2 trillion.

The private Federal Reserve calls these hand-outs to their corporate cronies “emergency loans” but in reality they are nothing more than friends giving friends unfathomable amounts of money in order to “keep the economy from plunging into depression”.

Of course Federal Reserve Chairman Ben Bernanke and Bloomberg opt to characterize the giveaway of public funds as legitimate “unprecedented efforts” to help our withering economy, when this is far from the case as we have seen from the entire “stimulus” package that has just driven American deeper into the black hole of debt.

If Bernanke actually cared one iota about getting the American economy back on track, he would have given the money to the people of the United States.

This $1.2 trillion would be able to cover almost the entire 6.5 million delinquent and foreclosed mortgages of struggling American citizens. Instead, and not at all surprisingly, Bernanke and the Fed opted instead to give the money to their buddies.

Sunday, August 21, 2011

Economists Refuse to Recognize the New Great Depression

Currently the economic malaise the U.S. is suffering is being misdiagnosed by the government’s economists. The slack demand in the economy and persistently high unemployment levels have been called a “soft patch” by some and a “recession” by others. Experience teaches that a true recession is a temporary decline followed by a reasonably brisk return to normal conditions. What we’re seeing instead is four-year period of economic weakness with no return to normal. To that end, the economic spin doctors insist on calling this the “new normal” when in actuality these conditions are abnormal.
The current economic malaise can best be described as a depression. A depression is essentially a period of several years in which economic performance is below normal and unemployment remains stubbornly above the average. But the word “depression” is a politically unpalatable word. It’s much more soothing to the ear to use terms like “soft patch” or “Great Recession.” No one has the guts to use the cold, harsh “D word,” but it would be more helpful for most Americans if they were informed that a New Great Depression is underway. This condition is being brought to us courtesy of the 120-year cycle decline, which still has a few more years to run.


Friday, August 19, 2011

Depression JOB Lineup

Thousands of unemployed waited overnight, camping out in their business suits and office heels and braving the tormenting heat in Atlanta to stand in line for a job fair Thursday. Authorities treated 20 people for heat exhaustion as they struggled to keep the line moving and get people moved inside.
The incredible turnout at the job fair comes on the heels of the state labor commissioner's announcement that Georgia's jobless rate rose.
The state unemployment rate increased to 10.1 percent in July from the 9.9 percent in June. The unemployment rate for African-Americans stands at 15.9 percent, far above the national rate of 9.1 percent.
July marks the 48th consecutive month that Georgia has exceeded the national unemployment rate.
The line was full of hopefuls who waited for hours in a line that wrapped around the Atlanta Technical College where the event was held.

So Where in the World is Safe?

Yesterday’s letter about social upheaval received a lot of comments, and I want to address the major themes today.
First, ‘Simon the White’ wrote: “You imply that it’s not just the USA, but that all Western countries are screwed. Where will the contagion end? You appear to be arguing ‘expatriate at all costs,’ but if things are bad enough that there is rioting in the USA, where on earth will be safe?”
To summarize yesterday’s letter, I view social upheaval as a foregone conclusion– it’s already happening around the world, and is a direct consequence of deteriorating economic conditions. In the developed world, social upheaval is a gigantic pyre desperately seeking a spark.
I recommend having a place outside of your home country as an escape pad, but I recognize that many people either cannot or do not want to leave– at least, not yet. Even those who are aware of the problems are still comfortable at home.
I think this is fine… as long as you HAVE A PLAN.
The funny thing about the boiling frog is that every day, the pot gets a little bit warmer. First they start by fondling 5-year old girls at the airports, then it’s train stations. Train stations become bus stations, bus stations become shopping malls, etc.


Wednesday, August 17, 2011

Home Crisis Deepens In The US

Home prices in some of the nation's hardest-hit metro areas have fallen far below pre-bubble levels, stirring concerns that properties in those markets are undervalued.
In a recent analysis, real-estate firm Zillow Inc. studied the correlation between home prices and annual incomes over the 15-year period that ended in 2000, before home prices began to surge.

For decades, price-to-income levels have moved in tandem, with a specific housing market's prices rising or falling in line with local residents' incomes. Many economists say that makes the price-to-income ratio a good gauge for determining whether housing is undervalued or overvalued for a given market.

Zillow found property prices in one-third of nearly 130 housing markets across the nation were undervalued, when compared with residents' current income and the pre-bubble trend.

"At a broad level, it is helpful to understand that if people in certain markets paid three times their average income in housing before the bubble, those markets are probably going to get back to that level," said Stan Humphries, chief economist at Zillow.

The analysis underscores a broader point: While the nation's housing markets largely fell and rose together during the housing boom and bust, they aren't likely to hit bottom and begin recovery at the same time or pace. The Zillow analysis shows that many markets still appear to be overvalued.

For the U.S. as a whole, home prices were around 2.9 times incomes from 1985 to 2000. But during the housing boom, values increased at a much faster rate than incomes. The price-to-income ratio peaked at around 5.1 in 2005. Home prices have since fallen so that on average, nationally, prices are around 3.3 times incomes, or about 14% above the historical trend.

Tuesday, August 16, 2011

10 Signs That US Riots And Unrest Are Now More Likely Than Ever

All over the United States we are already seeing some very troubling signs of the violence that is coming. The following are 10 signs that economic riots and civil unrest inside United States are now more likely then ever….

#1 Going to the state fair used to be such a fun thing for American families to do. But now no place is safe. The following is how one local ABC News affiliate described the “flash mob” attacks that took place at the Wisconsin state fair recently….

Milwaukee police said that around 11:10 p.m., squads were sent to the area for reports of battery, fighting and property damage being caused by an unruly crowd of “hundreds” of people. One officer described it as a “mob beating.”

Police said the group of young people attacked fair goers who were leaving the fair grounds. Police said that some victims were attacked while walking. They said others were pulled out of cars and off of motorcycles before being beaten.

One eyewitness said that the flash mob attacks at the Wisconsin state fair absolutely overwhelmed the limited police presence that was there….

When I saw the amount of kids coming down the road, all I kept thinking was, ‘There’s not enough cops to handle this.’ There’s no way. It would have taken the National Guard to control the number of kids that were coming off the road. They were knocking people off their motorcycles.

#2 According to a new Rasmussen survey, 48% of Americans believe that reductions in government spending are “at least somewhat likely” to result in civil unrest inside the United States. Unfortunately, perception often greatly influences reality.

#3 U.S. consumer confidence is now at its lowest level in 30 years.

#4 Joblessness among young Americans is at an epidemic level, and when rioting does break out it is usually young people that are leading the way. That is why the following statistics from an article in The Atlantic are so troubling….

Monday, August 15, 2011

An American Monetary Swindle and the Collapse of Great Nation

Homeless. Hopeless. Economic Woes Lead to Proliferation of Tent Cities Nationwide

While millions of Americans hold their collective breath as Wall Street wreaks havoc with their life savings and retirements, residents of Tent City, a tiny makeshift community about 70 miles south of New York City, have more immediate concerns: finding their next hot meal.

For this collective of homeless and unemployed former landscapers, service industry workers and military veterans, the mention of "tarp" is sure to start a conversation about temporary rooftops, rather than a debate over President Obama's $700 billion Troubled Asset Relief Program.

At Tent City in Lakewood, N.J., very few are lucky enough to leave.

It seems like a scene straight from "The Grapes of Wrath," but this is no Great Depression novel. This story takes place in 2011, and this New Jersey tent city is one of an untold number of such encampments across the United States, where unemployment has reached 9.3 percent and approximately 3.5 million people are likely to be homeless in a given year, according to the most recent estimates by the National Coalition for the Homeless.

Joe Giammona, 31, has been homeless for nearly four months, after moving from Florida following a relationship that "just didn't work out," he said. He briefly stayed at a rooming house in Asbury Park, N.J., but the accompanying drugs and violence chased him away. A former landscaper and general contractor, Giammona lost his job when his boss had to slash payroll.

"Ever since then, it's been impossible to find a job," he said. "They're just not hiring at this time. I've been everywhere."

Clad in a "Cape Cod" T-shirt, black sweatpants and filthy white sneakers, Giammona said he has relatives throughout New Jersey but refuses to "accept help" from anyone.

"I try to make the best of it," he said, while turning a hot dog on an outdoor grill. "I hope for hope."

Despite the optimistic outlook, Giammona, who looks for employment daily at nearby industrial parks or for any odd job as a day laborer, said life outside is no picnic.

"You're either rich or you're poor," he said. "There's no in-between anymore."

The Rev. Steven Brigham of the Lakewood Outreach Community Service Ministry established this tent city five years ago for Ocean County, N.J.'s unemployed and disenfranchised residents, many of whom had previously lived paycheck to paycheck. Whether by loss of a job, the death of a loved one or a failed marriage, the American Dream has turned into a waking nightmare for the camp's inhabitants.

The 2-acre, public-owned campsite, which sits just off a state road, is composed of dozens of tents, teepees and wooden shanties that will easily buckle with winter's first heavy snowfall. Residents cook food donated by local churches on outdoor grills, and there's even a shower room. When nature calls, outhouses are found fully stocked, and portable generators provide just enough juice to charge cell phones or fire up the radio for that night's ball game.

Sunday, August 14, 2011

Bernanke Pledges To Screw Your Grandmother For At Least Two More Years

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.” - Ron Paul

Friday, August 12, 2011

Terrorism Update: FBI Targets Preppers and Preparedness Supplies In Latest Bulletin

If you’ve been preparing for emergencies, disasters, or economic collapse there’s a strong likelihood that you’ve been added to a watch list somewhere.
Hard to believe?
The latest Communities Against Terrorism guidelines distributed by the FBI to military surplus stores in the state of Colorado outline specific activities that owners and retail associates should look for when trying to spot terrorist related activity. Much of the suspicious activity listed describes the behavior and shopping list of any modern day prepper:
What should I consider suspicious?
People or groups who:
  • Provide identification that is inconsistent or suspect or demand identity “privacy”
  • Insist on paying with cash or uses credit card(s) in different names
  • Make suspicious comments regarding anti-US, radical theology, vague or cryptic warnings that suggests or appear to endorse the use of violence in support of a cause
  • Demonstrate interest in uses that do not seem consistent with the intended use of the item being purchased
  • Possess little knowledge of intended purchase items
  • Make bulk purchases of items to include:
    -Weatherproofed ammunition or match containers
    -Meals Ready to Eat
    -Night Vision Devices; night flashlights; gas masks
    -High capacity magazines
    -Bi-pods or tri-pods for rifles
View the entire Federal Bureau of Investigation Memo [PDF]
The brief bulk purchases list described above is something you might find in the wish-list or supply closet of any serious prepper. If you are stocking up on ammo, buying extra magazines, a bi-pod and night vision then you are suspicious and potentially a domestic terrorist; nevermind that you may be planning a personal defense strategy for your property in the event of a widespread disaster and have no intention of using these items for any other purpose. Even if you are stockpiling the most basic of all preparedness lists, like MRE’s or other long-term food storage items, the FBI now considers you suspicious.

Thursday, August 11, 2011

We Are In A Depression That Will Last For Years

The United States isn’t merely double-dipping back into recession, but worse — it's in the early stages of a depression that will strangle the economy possibly for years to come, says Robert Prechter, president of Elliott Wave International.

That means investors need to stock up on cash and other funds whose strategy is to succeed in a bear market, Prechter says.

Excessive debt burdens will take years to shake off, and the problem is that many economists underestimate how long a debt-saddled contraction can last, especially when negative social moods hamper economic activity even more.
Robert Prechter
file photo)
"Some people are talking that maybe we'll have a double dip like 1980 to 1982, but I've been saying all along that this is the wrong perspective. You have to realize that we are in a depression," Prechter told CNBC.

"We're in the early stages, so we don't have the severe unemployment, the severe bread lines and that sort of thing. But since we are early in the trend, this is the kind of thing that the market is now beginning to look ahead and realize that the problem is deeper than just a minor recovery or a mild recession," he adds.
That doesn't mean investors need to run to the hills in panic and prepare for the end of days.

It means they should prepare for a bear market to last for about five years and look for opportunities in such a scenario.

Wednesday, August 10, 2011

US Is On The Edge Of Abyss

There is a lot going on in the world and the PMs are going a lot higher. Let me explain. No, there is too much. Let me sum up.
1) France is on the verge of losing their AAA rating.
2) Italian banks are on the verge of collapse.
3) In the U.S., Bank of America looks to also be on the edge of the abyss.
4) The Fed signaled yesterday that rates will stay at zero for the next two years.
5) Rioting and civil unrest seems to be on the increase globally.
We were all watching The Cartel vigorously defend the 1770 level since Monday. Many smartypant shorts were watching, too, hoping against hope that the Forces of Darkness would not let them down. To their surprise (not mine), The Cartel failed and, once gold tripped by 1782, it quickly surged almost $20 to $1801 as all the smartypant bootlickers got squeezed and stopped. Predictably, gold has pulled back from $1800 as profit-taking set in. Equally predictable, The Cartel used some equity strength to sell gold on the Globex, too. The resultant dip stopped right on schedule at 1770 and gold has since solidified. I have a last of 1777. Look for another night of fireworks in Asia. If you doubt me, ask yourself what happened today to lessen overnight Asian demand. Anything? Nope. Look for gold to trade back to and, probably, exceed 1800 overnight.

5 Reasons Why American Riots Will Be The Worst In The World

I wrote an article called 5 Places NOT To Be When The Dollar Collapses. In it I wrote that societies that benefited the most from the dollar would be the worst places to be when it fell apart. While the dollar has not even collapsed yet, the strain in these areas is becoming more apparent. England is number 3 on the list has had 4 days of violent riots as people start to lose it. Israel is number 1 on that list has had massive protests. There is revolution in the air all over the world except in the US.
America is still in deep denial which is still the first stage of the Awakening. This denial will be wiped away when the dollar collapses. For now the economy is still functioning with food and fuel available. Americans still have the illusion of wealth and normalcy. They still are stuck in the false left right paradigm and think some other sock puppet will turn things around.
When the dollar collapses, all American illusions will collapse with it. Deep denial will turn into deep anger. The violence I expect in the other 3 areas on the list and all urban areas in the US, will make all other global riots pale in comparison. America is deeply infused with arrogance, denial, narcissism, drugs and violence. There is no other society that I know of that has the degree of intensity and combination of these factors.

Tuesday, August 9, 2011

Fears Of Food Riots In Japan? Important Info!

Fears of food riots strike Japan after rice trading is halted due to a 40% price spike triggered by massive hoarding of the remaining radiation free rice supply.

It is time to start paying very close attention the events unfolding in Japan as the nation teeters on the verge of food riots which may serve as an example of what other nations in a similar situation would face.

As we approach the 5 month marker since the onset of the Fukushima nuclear disaster, Japan has repeatedly assured the public that the nation’s food supply was safe from radiation. Japan has given those reassurances despite warnings from experts that the nuclear fallout has already surpassed 20 Hiroshima bombs with no end in site and experts say ‘off-scale’ levels of lethal radiation at Fukushima infer millions dying.

Time and again those assurances have proven to be false. Radiation has been found in everything from soil and sewage to tea and beef. Even worse, a just released report revealed that Japan ran simulations back as far as 1984 which showed 18,000 deaths from acute radiation exposure and a 55 mile radius would be rendered permanently uninhabitable. All of these factors have entirely destroyed the public’s trust in their government.

In an attempt to regain the public’s trust, Japan just announced hours ago that they will no longer offer any assurances of the safety of the nation’s food supply.

Japan to refrain from claiming safety of Japanese foods

TOKYO (Kyodo) — Japanese Foreign Minister Takeaki Matsumoto has instructed his ministry to refrain from claiming the safety of Japanese foods, changing its stance after radiation-contamination beef was found to have been sold to consumers in Japan, sources close to the matter said Sunday.

The change is due to discoveries of radiation-contaminated meat from cattle fed rice straw laden with radioactive cesium spewed from the Fukushima Daiichi nuclear power plant, which was crippled by the March 11 earthquake and tsunami.


Source: Kyodo News

Unfortunately for Japan, the damage has already been.

Despite the repeated lies and attempts to brainwash the public though propaganda, Japanese citizens have finally come to the realization that the nation’s food supply is tainted with radiation from the Fukushima nuclear fallout.

That has lead citizens of Japan to begin hoarding last years rice supply, according to a report from Kyodo News.

NASA Hiding Approaching Doomsday Space Event

10 Reasons Why Gold Is The Gut Reaction And Why Silver Is The Smart Decision

We are at the beginning of a major shift out of paper assets into real assets. Those that are starting to come to this revelation have no real understanding what they are doing when they are buying gold. Sure they might get that it is rare and might remember their grandfather saying buy to gold, but they have not gone through the educational process necessary to truly grasp what they are doing.  When I wanted to get out of paper assets, I bought gold as a gut reaction. The more I learned about silver, the more I realized that silver was the smart decision.
When I first started my awakening process in March of 2005, I studied credit cycles and finally understood that the Federal Reserve is a privately and foreign owned bank. I wanted to get my wealth out of their casino. In fact, I recently warned paper investors that it is insanity to be betting in the paper casino, because the entire system is coming down. (Who Cares About Your Bet,  If The Casino Is Demolished?!) Now that people are starting to see this insanity, they want out. So where do people who have trusted the paper market first go when they have their awakening? Gold. Gold is the largest precious metals market in the world and has the most advertising behind it. People have seen it in movies as pirate treasure and maybe heard it was confiscated may years ago. I think gold so impressive to hold and feel, it is hard not to make it your first purchase. In short, gold is the gut reaction for most paper investors who want out of the casino. I think this is the reason why we see so much activity in gold versus silver right now.
The more I learned about silver, the more I saw that it was the only investment for me and my family. I am more bullish now in 2011, than I was when I bet the house on silver in 2005. When you truly understand the fundamentals behind silver, you will see that it is simply the best investment out there. I challenge anyone to find me a better investment. I love a challenge.

Monday, August 8, 2011

2011-2020: Decade of U.S. Economic Hell

More bad news for 'America's Worst Decade'

"The U.S. economy appears to be coming apart at the seams," warned Columbia Professor Robert Lieberman earlier this year in "Foreign Affairs."

Now, over at "Foreign Policy" magazine, Josh Rogin warns: "This Fight Ain't Over: Think the debt ceiling gridlock was ugly? Congress is just getting warmed up. Here are eight more foreign-policy battles right around the corner" when they get back to sinking the economic recovery even deeper this fall.

All punctuated last week by S&P's downgrade of the U.S. credit rating, as well as the one-day 513-point market drop into a double-dip recession.

Another "Foreign Policy" expert, James Taub, warns of what the "debt-ceiling deal tells us about the Tea Party's grim vision of American power."

A disaster ahead, Taub writes: "All Guns, No Butter ... depleting the national treasury to pay for the military ... when many Americans want to reduce the role of government at home and especially abroad, the debt deal just concluded is likely to preserve the country's hypertrophied defense budget, at least if congressional Republicans get their way."

And Mitch McConnell, the GOP's Darth Vader, is doing just that, doubling down on his vow to make certain Obama is a one-term president, intentionally ignoring the collateral damage, killing economic recovery.

The Western Fiat Currency Is Finished

Sunday, August 7, 2011

The dollar is about to hyperinflate like the Weimar republic currency of the 30's.

Other countries have had downgrades and been fine so why is this different?

Here's what people don't understand:

Unlike other sovereign debt downgrades such as europe or japan that have happened, the U.S. treasury securities are unique as a substitute for cash/dollars. No other country is like this, their securities are considered risk investments not cash substitutes. It calls into question the validity of the dollar.

Why is this significant? Because the dollar is the worlds reserve currency. Central banks buy it to back their reserves, but what happens if it becomes a less stable investment? Like any bad investment you dump your holdings.

Let me give you an example: The painter Salvidor Dali never paid for stuff at the end of his life. Why? He just wrote checks that would never be cashed. You see, he used to draw a little bit of art on the back of each check he wrote. Those who received the check never cashed them because they held in their hands an original Salvidor Dali artwork! But what would happen if his art one day had become considered worthless?

All those people would cash all those bad checks and that would bust salvidors overdrafted bank account.

What's going to happen now is similar. The dollar is about to hyperinflate like the Weimar republic currency of the 30's. We are about to enter the tall part of the hockey stick on the exponential curve of inflation. Central banks will begin to dump dollars, and the glut of dollars on the market will cause hyperinflation, destabilizing the currency further and sending the U.S. economy into a nose spin leading to further downgrades and further hyperinflation. All those dollars out there are like bad checks, and their about to get cashed and come home. You are worried about the feds running the printing presses? That will be nothing compared to the world central banks being forced to dump Dollar denominated reserves.

This downward spiral will suck the whole world into financial collapse.

Saturday, August 6, 2011

Jim Sinclair: Gold Is Going To $1764

It was Friday evening in London when I wrote this piece after excusing myself from the GATA conference festivities to report back to you.
I will be back at my post in the AM on Saturday ready for the battle ahead, assuring you in the process that victory is ours.
Allow me simply to summarize what exists in the gold market at the present time.
1. There are no signs whatsoever of a top in the gold price.
2. When $1,650 was selected mathematically based on probabilities it was simply the first level off the bottom that might have offered a top. It has not.
3. The key number in the gold market is $1,764.
4. As gold approaches that number you can anticipate furious but very short price reactions.
5. Thursday and early today you may have witnessed the last great attempt of the Short Cabal to discredit gold shares.
6. Various member of the voluntary Short of Gold Shares Cabal are quietly looking towards the exit.
7. There are quite a few hedge funds now seeking quality gold share positions where the leverage might exceed the percentage leverage left in gold itself.
8. Dean Harry Schultz said that I should call him when gold trades at $2,400.
9. Stay near your phone my dear friend of more than 45 years, Dean Harry.
10. Alf Fields, a man a great integrity, went silent two years ago because he did not want to publish short term interim highs that might have lost gold positions for the less than fleet of foot. Before Alf went quiet he spoke of $3,000 plus. I believe Alf to be the man to watch, if he will speak.

11. The compromise crafted by the US Senate and House by which the debt ceiling was raised is the event that has broken confidence in US financial management internationally. History books will point that out as the low point of judgment in this entire drama.

12. As long as the good Lord permits me, I will be by your side. My job is not to pontificate but to identify resources for you. Every trade has two events. One is in and the other may be diversification. I dedicate myself to seeing that clearly for you. A virtual reserve currency is coming. You will not be able to own or trade that virtual reserve currency as you have been able with the dollar. Gold will be attached to that virtual reserve currency via a broad measure of world liquidity. It will be something akin to a planetary measure of liquidity as M3 was in the past for the dollar. That linkage, which is not convertibility, will translate into price, but no central bank of any nation will need to add to or delete from their then reserves.
The Goldmans of the world will invent OTC derivatives and maybe even a listed second derivative to speculate on word liquidity via the gold price. There will be no 1980 type collapse in the gold price. Over valuation which occurs in all bull markets might be by 20%. This will result in producing gold mining shares becoming the utilities of 2016 onward.

Friday, August 5, 2011

Collapse: “It Will Be Sudden and Very Painful”

While it’s too early to tell whether or not the destruction in stock markets will continue as it did in 2008, one thing is for sure – when the bottom finally falls out of this economy it’s going to come as a surprise to tens of millions of people who have been bamboozled by their trusted politicians and corporate elite.
Today’s Dow Jones collapse of 350 points is but an indicator of the severe volatility and unmitigated destruction we can expect as this crisis enters the next phase. Former comptroller general of the Government Accountability Office (GAO) David Walker warns that it’s going to hurt:

“Here’s the bottom line. If you take the total liabilities of the United States – public debt, unfunded pensions, retiree health care, under funding with regard to social security, with regard to medicare, a range of commitments and contingencies – as of September 30 2010 we would have had to have had $61.6 trillion dollars in the bank in order to be able to defease those obligations.” Walker explained.
“The fact of the matter is that government has grown too big, promised too much and waited too long to restructure. Our problem is overwhelmingly a spending problem.” Walker, now the head of the fiscal advocacy group the Comeback America Initiative, told viewers.
“Lets understand something very simple. If you have escalating deficits and mounting debt, that means you have to increase the debt ceiling limit at some point and it means absent structural reforms in entitlement programs, defense and other spending, those represent deferred tax increases.”
“We are not exempt from a debt crisis,” he said. “We’re never going to default, because we can print money. At the same point in time, we have serious interest rate risk, we have serious currency risk, we have serious inflation risk over time. If it happens, it will be sudden and it will be very painful.


Thursday, August 4, 2011

The 500 Point Baby Drop Today

No Fiat Currency Has Lasted Forever. All Fail

In spite of constant headlines about debts and deficits, most Americans don’t really believe the U.S. dollar will collapse. From knowledgeable investors who study the markets to those seemingly too busy to worry about such things, most dismiss the idea of the dollar actually going to zero.
History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.
BMG BullionBars recently published a poster featuring pictures of numerous currencies that have gone bust. Some got there quickly, while others took a century or more. Regardless of how long it took, though, the seductive temptations allowed under a fiat monetary system eventually caught up with these governments, and their currencies went poof!


Wednesday, August 3, 2011

Doug Casey - Inflation to Start Running 20% - 40% Per Year

“Inflation in the next few years is likely to start running ahead at 20% or 30% or even 40% per year or more and that’s going to devastate the prudent people in this country and perversely it’s going to reward the imprudent ones, the grasshoppers in our society that are deeply in debt because it will wipe their debt out. This is all quite perverse, very bad.

When asked if the imprudent will also pay because they will have a tough time sustaining themselves during that period of rapid inflation Casey responded, “Well they might because they may be unemployed. With inflation at high levels, the standard of living is going to go down rapidly.

There is going to be more unemployment. There are going to be more business failures and even if your debt is being wiped out by inflation there is no guarantee that you are going to be able to service it in the meantime. This is pretty much a lose, lose proposition. Nobody wins when an economy is destroyed and that’s what the US government is doing to what’s left of the US economy at this point.


Tuesday, August 2, 2011

13 Reasons Why The U.S. Is Now OFFICIALLY BANKRUPT

ATTENTION IDIOTS IN THE MAINSTREAM MEDIA - Stop The Budget Lies - There Are NO Cuts - House Passes Bill To INCREASE Spending By $7 Trillion Over The Next 10 Years
Lies, Damn Lies And Government Budgets
I am so pissed off by the misreporting I could spit Ken Lewis hairballs.
1) Mainstream journalists and financial pundits know NOTHING about budgets.
2) The Boehner led House passed legislation this evening that INCREASES spending by $7 TRILLION over the next ten years versus a baseline budget that would have increased spending by $9.5 TRILLION over the same period.
3) CBO said today that LESS than 2% of the decrease in the GROWTH of spending will come before the 2012 elections.  The remainder come after the election.
4) Defense and war machine spending will grow at 3% per year instead of 4% per year.
5) This was nothing but an agreement to agree at a later date to look for reductions in planned spending GROWTH.
6) A Super Congress will decide on a mix of tax increases and reductions in planned spending growth to meet the targets at a later date.
7) No one in Congress even considered Ron Paul's simple plan, now endorsed by Time Magazine as well as liberal economist Dean Baker, to wipe out $1.6 trillion in fake debt owned by the Federal Reserve.  Debt that we owe to ourselves, that is entirely legal to wipe away.
8) CBO says under this plan, the national debt will INCREASE from $14.4 TRILLION currently to more than $25 TRILLION over the next 10 years.
9) The assumption for #8 above assumes the economy grows at 3% per year over the next 10 years, and that Treasury interest rates stay at historic lows.  When rates increase, and bet your life that they will, interest on the debt will increase and so will annual deficits, leading to a national debt much higher than the $25 TRILLION that CBO estimates