Friday, June 29, 2012

Connecting The Dots

This week may very well go down as 'connect the dots' week. Things have been moving so quickly, so let's step back briefly and review the big picture from the week's events:

1) After weeks... months... even years of posturing and denial, Spain and Cyprus became the fourth and fifth countries to formally request aid from Europe's bailout funds on Monday.
In doing so, these governments have officially confessed to their own insolvency and the insolvency of their respective banking systems.
Meanwhile, Slovenia's prime minister said that his country may soon ask for a bailout. (Humorously, Slovenia's Finance Minister denied any such plans.)
Spain's 10-year bond yield jumped to over 7% again in response, and many Spanish banks were downgraded to junk status by Moodys.
2) Over in the US, the city of Stockton, California filed for bankruptcy this week... the largest so far, but certainly a mere drop in the proverbial bucket.
3) JP Morgan, considered to be among the few 'good' banks remaining in the US, conceded that the $2 billion loss they announced several weeks ago might actually be more like $9 billion.

Time For Plan B
In the United States and elsewhere, this is shaping up to be the retirement era of scraping by and making do.
But not everywhere. In some key spots, not only can you maintain the standard of living you enjoyed during your hard-working can improve it! You can live better than you ever did "back home."

4) The Federal Reserve reported yesterday that foreigners are reducing their holdings of US Treasuries.
5) Countries from Ukraine to Kazakstan to Turkey announced that they have purchased gold in recent months to bolster their growing reserves.
6) Chile has joined a growing list of countries that has agreed to bypass the US dollar and settle all of its trade with China in renminbi.
7) China has further announced plans to create a special zone in Shenzhen, one of its wealthiest cities, to allow full exchange and convertibility of the renminbi.
8) World banking regulators from the Bank of International Settlements to the FDIC are proposing that gold bullion be treated as a risk-free cash equivalent by commercial banks.
So... what we can see from this week's events is:
- European governments are insolvent
- European banks are insolvent
- US governments are heading in that direction
- Even the best US banks are not as strong as believed
- Foreigners are abandoning the US dollar and seeking alternatives
- Gold is money
These events are all connected, and the trend is becoming so clear that even the most casual observers are starting to wake up.
When you connect the dots, the next steps lead to what may soon be regarded as an obvious conclusion: the system, as it exists right now, is crumbling.
No amount of self-delusion can make this go away.
Rational thinking and measured action, on the other hand, can make the consequences go away... turning people from victims into spectators of the greatest bubble burst in modern times.
Until tomorrow,
Simon Black
Senior Editor,

Thursday, June 28, 2012

Americans Are Being Prepared For Full Spectrum Tyranny

Totalitarian governments, like persistent forms of cancer, have latched onto the long history of man, falling and then reemerging from the deep recesses of our cultural biology to wreak havoc upon one unlucky generation to the next. The assumption by most is that these unfortunate empires are the product of bureaucracies gone awry; overtaken by the chaotic maddening hunger for wealth and power, and usually manipulated by the singular ambitions of a mesmerizing dictator. For those of us in the Liberty Movement who are actually educated on the less acknowledged details of history, oligarchy and globalized centralism is much less random than this, and a far more deliberate and devious process than the general unaware public is willing consider.

Unfortunately, the final truth is very complex, even for us…

One cannot place the blame of despotism entirely on the shoulders of globalists. Sadly, the crimes of elites are only possible with a certain amount of complicity from subsections of the populace. Without our penchant for apathy and fear, there can be no control. That is to say, there is no power over us but that which we give away. We pave the road to our own catastrophes.

In the end, a tyrant’s primary job is not to crush the masses and rule out of malevolence, but to obtain the voluntary consent of the citizenry, usually through trickery and deceit. Without the permission of the people, subconscious or otherwise, no tyranny can survive.

As with the oppressive regimes of the past, America has undergone a dramatic transformation, heavy with fear and ignorance. Our tradition of elections has been corrupted and negated by the false left/right paradigm, and the leaderships of both defunct parties now seek only to elevate a select minority of men bent on globalization. Our Constitutional liberties have been dismantled by legal chicanery. Our principles have been diluted by intellectual games of rationalism and moral relativism. Our country is ripe for conquest.

Americans battle over whose side is most to blame; Democrat or Republican, while ironically being disenchanted with both entities. For some people, the thought of holding each party equally accountable, or accepting that they are essentially the same animal, never crosses their minds.


Secret Gold Tax in OBAMACARE

Wednesday, June 27, 2012

Golden Lies In The Media

The big banks have becoming hedge funds but are backed by the Fed and taxpayer funds. You think that provides them with a competitive advantage? The Fed encourages and abets big banks to trade like hedge funds so the banks can generate, even craft, earnings to keep them afloat. Bill King, The King Report
If you woke up this morning and read some of the headlines that pertain to the housing market, you might be convinced that the bottom is in and the next bull market in housing is starting.  Of course, it's funny how homebuilder, realtor and Government numbers diverge from one of the best "grass root" statistics:  mortgage purchase applications.  Mortgage purchase applications declined again last week: "The unadjusted Purchase Index decreased more than 2 percent compared with the previous week and was almost 3 percent lower than the same week one year ago."  Here's the report from the Mortgage Bankers Association:  LINK

How can the housing possibly be going through a recovery when purchase applications have been mostly lower week to week during the peak home selling season?  Makes no sense.  Either the mortgage bankers are lying or the homebuilders, realtors and Government are all lying.  I know which constituent I would bet is lying.  I will say, that there has been a lot of strength in the low price end of the market.  But this is coming from investors who are taking advantage of Government financing programs to buy low-end homes and turn them into rentals.  As I have shown in previous posts, Fannie and Freddie announced this program several months ago.  Ironically, they needed an outlet for all the homes they repossessed to make room for more foreclosures...wash, rinse, repeat.  A friend of mine had put in an offer on a lower end priced townhome last week in an area of Denver that had bubbled up during the housing bubble and she was topped by an investor who paid the full asking price.  This won't last and real buyers would be well advised to not chase it.

The other source of housing market euphoria was this morning's earnings report from Lennar.  The headline proclaimed a huge increase in earnings for the quarter and the CEO announced that the housing market was in recovery.  Of course, what was not in the headlines was the fact that LEN used a complicated accounting maneuver to generate most of its earnings.  Of the $453 million in reported GAAP earnings, $403 million of it was generated by a non-cash "reversal of the deferred tax asset valuation allowance."  Essentially, a deferred tax asset occurs when a company pays the tax man more in actual cash taxes than it reports in GAAP income for reporting to shareholder purposes.  There's two sets of books, the GAAP book and the "cash" book, or the book of numbers used to calculate actual tax payments to the Government.   There are "timing" differences for recognizing income between the two sets of books, and depending on the circumstances, in any given year a company may pay a lot more or a lot less the Government in taxes than it reports to investors in financial statements.  It's a great earnings management tool for management.


John Williams of Interview: The Next Crash Will Be A Lot Worse!

Tuesday, June 26, 2012

Exectutive Order Signed By Obama..Why?

Dear Friend,
With all that is going in Washington these days some things don’t make the news the way they should.  Fourteen days ago President Obama issued an Executive Order that you should know about.  This order gives an unprecedented level of authority to the President and the federal government to take over all the fundamental parts of our economy - in the name of national security - in times of national emergency.
This means all of our water resources, construction services and materials (steel, concrete, etc.), our civil transportation system, food and health resources, our energy supplies including oil and natural gas – even farm equipment – can be taken over by the President and his cabinet secretaries.  The Government can also draft U.S. citizens into the military and force U.S. citizens to fulfill "labor requirements" for the purposes of "national defense."  There is not even any Congressional oversight, only briefings are required.
By issuing this as an Executive Order the President puts the federal government above the law, which, in a democracy, is never supposed to happen.

As President and Commander in Chief of the Armed Forces, he has the Constitutional authority to issue executive orders.  And while similar orders have been made before by presidents from Eisenhower and Reagan to Clinton and George Bush – it has never been done to this extent.

It is still unclear why this order was signed now, and what the consequences are for our nation – especially during times of peace.  This type of Martial Law imposes a government takeover on U.S. citizens that is typically reserved for national emergencies, not in a time of relative peace.

I want you to know I am following this very closely.  If you would like to read the order for yourself please click here.


Kay Granger
Member of Congress

Huge Worldwide Cyber Bank Raid Ongoing- Estimated €2 Billion Stolen

UK’s Sky News has just reported that a huge worldwide cyber bank raid is ongoing- €60 million have been confirmed stolen through 1 server, and a total of €2 billion is estimated to have been stolen through an additional 59 servers!

Sky News is reporting that McAfee Virus has uncovered a series of financial attacks on US, UK, and Euro-zone banks with individual transfers of over €100,000 being reported.

Is this an extension of RBS’ NatWest’s complete banking system melt-down/ cash account rehypothecation, which is now in its 8th day?

Our thoughts are this is either an Iranian ‘Stuxnet’ retaliation, or a false-flag banking system lock up by the Western Central Banks themselves on which they can conveniently pin the blame for an imminent derivatives induced contagion and banking collapse.

Monday, June 25, 2012

Is Tokyo Uninhabitable?

Tokyo officials are to start decontamination of a 92-hectare park where high levels of radiation have been detected.

On Monday, officials tested 14 locations at Mizumoto Park in Katsushika Ward, following reports from the public about radiation hot spots there.

Thirteen of tested locations registered radiation above one microsievert per hour at one meter above ground, with the highest reading at 1.22.

According to science ministry guidelines, decontamination is required when radiation is at least one microsievert higher than surrounding areas. Based on these guidelines, 9 of the 14 surveyed places in Mizumoto Park will be decontaminated.

Since last year's accident at the Fukushima Daiichi nuclear plant, the ministry has received about 150 reports of Tokyo hot spots, as of March.

Sunday, June 24, 2012


4 sec: "Do we all work for Central Bankers? Is this Global Governance at last? Is it One World.. with the Central Bankers in charge?"
1 min: "To answer your question: We are absolutely slave to Central Banks"
1 min 16sec: "Markets are driven by policy now, they're not driven by market forces"
1 min 26 sec: "Fiat currency thats continually watered down.. so the markets go up and we feel good about it"
2min 25 sec: "We are basically beholden to Central Bankers"
2min 30sec: "..admits (Federal Reserve) are debasing currency and borrowing our way to false prosperity"
2min 48sec: "Every Central Bank in the world has to devalue their currency"
3min 28sec: "Free markets will fight back and ultimately they'll win"

Jim Rogers: European Bailouts May Lead to Another World War

A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers.

As an alternative, he recommends a combination of capitalism and socialism to weed out weak European banks and companies and to support the strong.

“This is how we got into World War II,” Rogers tells Yahoo, referring to Europe’s handling of its financial crisis.

Editor's Note: Google Banned This Video But You Can Watch it Here
“Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.”

The Rogers solution: “Let the people who have failed, go bankrupt,” he says. “The banks and bondholders would lose money, but then you start over.”

That’s classic capitalism, Rogers says. “Bailing out zombie companies and banks has never worked. Look at Japan."

But free markets alone can’t solve the problem, Rogers says. Governments must help choose the winners and losers – and quickly.

“If you wait two years from now, five years from now, when no government has any credibility and nobody will give you any more money, then it's finished. You better get yourself a rifle and head to Asia."

But the prospect for Europe doing more than kicking the can down the road now looks bleak.

Countries in the eurozone are split, with creditors like Germany continuing to focus on the need for austerity, while borrowers seek more assistance and want to focus on growth.

Rogers isn't alone in predicting such a dire scenario.

Friday, June 22, 2012

Paul Krugman's Alien Invasion Defense Idea To Save Economy?

Nobel laureate economist Paul Krugman repeated his assertion this week that the United States could benefit economically if the government began pouring money into anti-ET defense in preparation for a possible alien invasion of Earth.
Even a faked war of the worlds scare might help, he suggested.
The Huffington Post reached out to some experts who share an intense interest in the idea that earthlings are not the only intelligent game in town -- or space.
We asked, If there were an ET threat and if the U.S. government were to suddenly rechannel its budgets into preparing an anti-alien defense, would that ultimately save our economy? Their responses varied, ranging from skepticism to enthusiasm.
Here is a sampling of their replies emailed to HuffPost:

"I assume the alien attack is a euphemism designed to gain public support for that spending effort. Therefore, my position would be that the alien invasion he proposes to prepare for is with the mythical aliens. They are Hollywood contrivances and conveniently always have fatal vulnerabilities that humans can exploit. The good news in that scenario is we both defeat the evil aliens, and in this case, restore our economy." -- John Alexander, a retired Army colonel and developer of the concept of nonlethal defense at Los Alamos National Laboratory
"Any aliens that have the capability to come here and ruin our whole day by vaporizing Earth or terrorizing its hominid inhabitants, would be centuries -- perhaps millennia -- beyond our technical level. To spend effort preparing for such a lugubrious possibility would be like the Neanderthals organizing their society to defend themselves against the U.S. Air Force. That won't do them much good on the battlefield. But who's to say? Maybe it would improve the Neanderthal economy." -- Seth Shostak, a senior astronomer at the SETI Institute and chair of the International Academy of Astronautics' SETI Permanent Committee

Thursday, June 21, 2012

Real Estate Rip Off, For Billionaires Only: Uncle Sam's Real Estate Fire Sale

The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.”
So warned Roger Arnold, chief economist for ALM Advisors of Pasadena, California, in a column for RealMoney on August 11, 2011, that first lifted the lid on this latest colossal scandal to come out of the 2008-2009 financial crisis.
“These homes,” wrote Arnold, “which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value. You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs (GS) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.”"

Wednesday, June 20, 2012

GEAB N°66 is available! Red alert / Global systemic crisis

1 Global recession (no more engine of growth anywhere / the end of the myth of the "US recovery") (5)

2 Growing insolvency of the western banking and financial system

3 Increasing fragility of key financial assets such as sovereign debt, real estate and the CDS which form the base of the large global banks balance sheets

4 Fall of international trade (6)

5 Geopolitical tensions (particularly in the Middle East) approaching the point of a regional explosion

6 Global geopolitical blockage at the United Nations

7 Rapid collapse of the whole Western asset backed retirement system (7)

8 Increasing political divisions among the world "monolithic" powers (USA, China, Russia)

9 Lack of any “miracle” solutions as in 2008/2009, because of the growing powerlessness of several major Western Central banks (FED, BoE, BoJ) and the debt of the States

10 Credibility in free fall for all countries to assume the dual burden of public debt and excessive private debt

11 Inability to control/slow down the progression of the growing and now massive long-term unemployment

12 Failure of monetary and financial stimulus to stop the global depression

13 Quasi-systematic ineffectiveness of international forums G20, G8, Rio + 20, WTO,... on all the key themes of what was a global agenda (8 a total lack of consensus on virtually all matters of importance: economy, finance, environment, conflict resolution, global poverty,...

According to LEAP/E2020, the second half of 2012 will mark the major inflection point of the global systemic crisis. It will be characterized by a phenomenon which is in fact very simple to understand: If Euroland is today able to approach this period in a promising way (9), it is because it crossed in recent years a crisis of intensity and unmatched since the beginning of the project of European construction after the second World War (10).

From the end of summer 2012, all of the other world powers, led by the United States (11), will have to face an identical process. The United States after having tried by all means to delay or defer the crisis, the hour of payment finally arrives. And as in anything, the ability to delay the inevitable comes at a high price, namely a bigger shock of adjusting to the new reality.

This is in fact the end of party for the world of before the crisis.

This fall we will witness the collapse of the “dollar wall”; like the sound of the 7 trumpets which brought down the walls of Jericho, the period September/October 2012 will witness the fall of the last sections of the "dollar wall" and the end of the empire which has protected the world we have known since 1945.

The shock of the fall of 2008 will look like a small summer storm compared to what will affect the planet in a few months time.In our modest attempt to publish a regular "crisis weather forecast", we must give our readers a "red alert" because the upcoming events which will shake the world this fall belong in that category.

The 'Skyscraper Index' Is Warning That The Global Economy Could Soon Collapse

We've discussed about how skyscraper construction can be used to predict imminent doom for the global economy.
Originally conceived of by Barclays, the idea is that there's correlation between construction of the next world's tallest building and an impending financial crisis.
From the Empire State Building in 1930 to the Burj Khalifa in 2007, it's unfortunately but eerily accurate.
Now, as Azizonomics points out, China is announcing it wants to build the tallest building in the world: a 220-story "car-free city" in the inland town of Changsha.
And it wants to do so within the next seven months.
Is that how much longer we have to sell out of our positions?
Here's Barclays' original chart:
chart, skyscraper booms vs. economic crises, jan 11 2012

Tuesday, June 19, 2012

In Case Of NEW QE, Gold To $1,900-$8,500 Says SocGen

In a previous post we showed how, despite Goldman's best wishes, the market may have just priced itself out of a treat from the Fed tomorrow, and right into a trick. That said, in case the Fed has in fact succumbed to the pleadings of its superiors (read Primary Dealers) and does proceed with some seriously unsterilized dollar mauling, the next question is what is the best hedge. SocGen asked the same, and provided several strategies to take advantage of central planners exhibiting a rare case of Einstein's definition on insanity... over and over. Their "Strategy #1: Bolster Positions In Gold Ahead of QE3." Why? Because once the next round of the gold juggernaut is unleashed, gold may go to anywhere between $1900, just shy of the all time nominal high, and $8500... just a tad higher than the nominal high.

From SocGen:

  • USD 1900/Oz: To close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price
  • USD 8500/Oz: If gold catches up with the increase in the monetary base
    since 1920 (as it did in the early 80s), its price would rise to USD 8500/Oz.
The latter scenario is the price only catching up with where it should be. Add another $700 billion - $1 trillion for a potential NEW QE, and you get a 5 digit (and increasingly more meaningless) number.

Source: Zerohedge

Modern-day Nostradamus' Warns U.S. of Doom

In the book, Rosenberg explores whether the United States – long the wealthiest, most powerful nation in history – is an empire in decline or a nation poised for a historic renaissance. The book asks whether America’s religious past can be repeated today with a Third Great Awakening, or whether the rise of China, Russia and other nations, coupled with America’s internal struggles, will plunge the country into terminal decline.
The book comes as the nation faces soaring federal debt, severe economic turmoil, political uncertainty, declining morality, a weak church, growing spiritual apathy and apostasy, a spate of historic natural disasters and many other daunting challenges.
Rosenberg comes to the same conclusion about an imminent reckoning for the U.S. that’s revealed in “The Harbinger” book and the “Isaiah 9:10 Judgment” video. Is God sending us critical messages for our very survival as a people?

Many Americans have come to believe that the U.S. has entered a period of severe and potentially irreversible decline and fear the nation is in serious risk of economic and social collapse, Rosenberg wrote.
In the book, he cites several startling polls. A 2008 NBC News/Wall Street Journal poll found 73 percent of Americans believe the U.S. is in a state of decline. A 2010 Fox News Poll found nearly 80 percent of Americans believe the U.S. economy could collapse entirely. And a 2011 CNN poll found nearly half of all Americans fear the U.S. is heading for another Great Depression.
In “Implosion,” Rosenberg outlines the reasons why the U.S. faces a real and growing risk of collapse.
Economically, the nation is more than $15 trillion in debt and is fast approaching $65 trillion worth of unfunded liabilities – promises the government has made regarding Social Security, Medicare and Medicaid that it can’t afford, Rosenberg says.
Further, America has lost 53 million children to abortion since 1973.
“That’s horrific in its own right – murder in my view,” Rosenberg says. “But on top of that, as if that weren’t bad enough, it’s having an economic affect that liberals didn’t intend, which is if you build a social welfare system in which young people pay the bills of older people through taxes and then you kill 53 million younger workers you are going to have a crisis.”
Meanwhile, the nation’s ‘horrible pornography industry,” which exports its lurid materials worldwide, earns more money than NBC, ABC and CBS combined, Rosenberg says.
Morally and spiritually, marriages and families are imploding as the foreclosure and economic crises exact unexpected consequences, Rosenberg says. A Federal Reserve report released earlier this week found the median wealth of families dropped 39 percent from $126,400 in 2007 to $77,300 in 2010.
“You can feel that, but the idea of an economic collapse is hard for people to grasp,” Rosenberg says. “They say, ‘Well, we’re not really Greece.’ But in terms of our families, we see that. We can see the family imploding. The question is this: Is there a point at which we hit a tipping point and all of this economic, cultural and moral trouble sends us into a death spiral we can’t get out of.
“The question, in a broader sense, is there a point at which God can no longer show us grace and mercy as a country, but will remove his hand of favor or actually set in motion judgment.”
In the book, Rosenberg chronicles a growing national discussion of whether American society could implode.
In 2010 during an interview with former U.S. Sen. Judd Gregg, R-N.H. – onetime chairman of the Senate Budget Committee – Fox News host Greta Van Susteren raised the possibility that the economy could “implode.”
“That’s right,” Gregg told Van Susteren. “That’s exactly what’s going to happen.”

Monday, June 18, 2012

When this Depression starts, everyone will suffer

Today everyone is focusing on the Greek election, but that focus is totally misplaced.  The election makes no difference whatsoever to the outcome of this worldwide economic disaster.  Greece might be a catalyst, but a catalyst can come from anywhere.
-Egon von Greyerz

When this Depression starts, everyone will suffer; it's just a question of who suffers the least.
-Richard Russell

If Greece doesn't get its next loan installment, the Eurozone will collapse the following day."
-Alexis Tsipras, leader of the left-wing SYRIZA party.

I'm disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market.
-Ted Butler, renowned silver expert (Ted, I've "disclosed" this EVERY DAY for the past FIVE YEARS)

Unfortunately, the market reaction to the Spanish bank bailout was negative, with Spanish 10 year rate pushing past 7% for the first time since 1996.
-Deutschebank analyst

It's not about the Greeks.  It's not about the Spanish.  It's not about the Italians.  It's not about the English.  It's not about the Chinese.  It's about EVERYBODY.
-Gerald Celente

Greece has a total debt of about $1.3 trillion.  This is composed of their sovereign debt - which Europe counts - and their $90 billion in derivatives, Federally guaranteed regional debt, sovereign guaranteed bank and corporate debt,  obligations to the EU, and loans from other central banks.  It is simple addition, counting ALL the liabilities while Europe does not.  Then take Greece's GDP and divide by its total debt, and you get a debt to GDP ratio of around 453%.
-Mark Grant

When the banking institutions need the money, central banks - whether it's the ECB, the Fed, the BoE, or a new global Central superbank - will print and print and print.
-Ron Paul

Back to the 1930s: the hammer, sickle and swastika

Ten days before Greece’s elections, a member of the neo-nazi party, Golden Dawn, repeatedly hit a female candidate of the communist party while appearing live on a television talk show and threw water over a female candidate of the radical left Syriza. The communist had just called him a “bloody fascist” and he addressed her as a “commie”. Greek elites (journalists, intellectuals, politicians) condemned his violence almost unequivocally. Yet the ugliest part of this incident was the readiness of many lay people to defend him, even cheer him, while the neo-nazis rose in the polls.
Unfortunately this episode was not isolated. Despite the narrow victory of a centrist party in Sunday’s vote, almost every day extremist violence breaks out in Athens and beyond. Neo-nazis against immigrants, anarchists and leftists. Anarchists, ultra-leftists and other fringe groups of the nationalist-populist camp against riot police, mainstream politicians, journalists, liberal intellectuals, even artists. Add to this a surge in crime and rising tolerance of violence and you have a clearer picture of today’s Athens. Does it remind you of anything?
That’s right. Greece’s situation recalls the Weimar Republic. Violence (and its banalisation), hate, rage, polarisation, fear, despair and resignation. As for the police, it has already taken sides: neo-nazis won by a landslide in polling stations where officers were assigned to vote.
The electoral results demonstrate the dangers to the Greek democracy. The centre-right New Democracy party may have edged ahead, but the parliament, for the first time in Greek history, will be full of extremists. Besides the neo-nazis and a Stalinist communist party there is Syriza, whose leader is a fan of Mao Zedong, Fidel Castro and Hugo Chávez. It is difficult to find a notable dictator, even among the great butchers of the 20th century, without a steady following in the Greek parliament. The three protagonists of the dreadful TV incident were also elected. Imagine them together in routine parliamentary proceedings. Golden Dawn members have already made it clear they would come down hard on any member of parliament saying something they strongly disapprove of.

Saturday, June 16, 2012

Gold to Pop $1,000+ During Global Banking Emergency

Waiting for the rally in gold to begin?  Don’t.  Global policymakers plan to institute the vital element of surprise to trap unsuspecting investors into bearing viscous currency devaluations.
As reported by King World News’ Anonymous London Trader, the 515 tons of paper gold dumped onto Chinese buyers of the ‘physical’ within an hour before, and during, Fed Chairman Ben Bernanke’s testimony to Congress illustrates the desperate nature of central banks to dupe the public into complacency and inaction to an epic global financial crisis in progress.

The thinking goes: if the gold price isn’t making a bullish pattern on the charts, then there’s no need to buy it right now.
Veteran money manager John Hathaway of Tocqueville Asset Management proffers in a letter to clients a scenario in which investors could be waiting for a scheduled bus that never will arrive—a financial mistake that could be the biggest of their lives.
Under a scenario whereby policymakers refuse to preempt a global crisis via some form of a Bretton Woods II (to include the emergence of some form of a gold standard as its pillar), “a new round of QE will most likely be triggered by emergency conditions in the financial markets and be seen as both an act of desperation and a tacit admission by policy makers that they really have no answers,” Hathaway stated in his letter.  “In such a moment, we would not be surprised by a leap in the gold price approaching several hundred and possibly thousands of dollars an ounce in too short a period for significant capital to enter.” [Emphasis added]
As the crisis takes shape, overnight fascist-like policies will become less surreptitious and more overt during the escalation of bank failures and failed sovereign debt auctions.  A tipping point will be reached when investors begin witnessing frequent and wild fluctuations in currencies, bond and equities markets.  Emergency actions will be taken akin to the Lehman meltdown but on a much larger scale. By then, everyone will know the bus isn’t coming. No gold will be offered.
Remarkably, institutional money manager, like Hathaway, believe politics of austerity will trump the power of central banks to deal with a crisis that has no solution other than to debase currencies further to ward off repercussions more severe than public reaction to cutbacks on government transfer payments.
And when that critical moment of awareness that the talk of austerity is just that, talk, Hathaway told KWN in a separate interview this week, investors will become alarmed “at the readiness of policy makers to resort to radical, ad hoc measures to buy time” and stated in his letter to clients a day later, “My feeling is the absence of QE is priced into gold here.”
The surreal complacency by institutional and private investors to the imminent dangers of a chaotic event, which could take gold to monstrous heights, as Hathaway suggests, is glaringly apparent when compared with a recent announcement from OANDA fxTrade that trade restrictions will be in force—an omen of things to come globally.

Friday, June 15, 2012

Federal Reserve Gives Trillions To Its OWN BANKS

Following the 2008 financial crisis, the Federal Reserve provided more than $4 trillion in near zero-interest loans and other help to banks and businesses whose executives also served as directors for the national bank.

At least 18 current and former Fed regional bank directors had a direct stake in the trillion-dollar bailout given to teetering institutions, according to a report produced by the Government Accountability Office, but released by Senator Bernie Sanders (I-Vermont).

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sanders said in a prepared statement. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks.”

Thursday, June 14, 2012

Rumor: Euro Has COLLAPSED

June 14, 2012


It is with trepidation that I write to you....The Euro has collapsed unofficially. The money is OUT of Greece, Spain, Portugal, Ireland, Italy, France, Belgium and the German Elites have begun to shore up their wealth in hard assets and precious metals. RBS has given orders to close two of their major equities sectors, thousands of jobs are going to be lost the next few days/weeks. Credit Sussie has called on top investors to head to Swiss safe harbor and hard asset diversified portfolios.
The Capital Controls are in place to keep the charade of control going for the next four to six months before the official collapse. Steve...this is it. The Euro has collapsed and no one has noticed it. Greek bank runs are close to $3.5 Billion Euros per day not the $1 Billion that is being reported. The rest of the PIIGS are in the same boat. Bank Holiday imminent in all of continental Europe in the coming days and weeks. This is again theatrics to keep the plebeians believing in some semblance of control.
Please warn your listeners to pull out of their bank accounts everything that they need. Keep only to pay the day to day expenses. If they have land to go to, please do so now. Steve I do not know how much longer I can keep writing to you. You were knocked off line during your show with the Haggmans right before your were going to divulge what I have told you with the Spanish bailout. It is getting dangerous for all of now.
Again the Euro has collapsed...I repeat the Euro has collapsed. Unofficially.

May God Help Us All....



The Euro's Collapse Is Not Just About the Euro

20 Reasons Why America's Next Bank Holiday Will Be a Nightmare

Here are 20 Reasons why America's next bank holiday will be a nightmare:

A bank holiday will create a virtual blackout of information on not just checking and saving accounts, but also automated mortgage payments, CDs, and more. Our presently quite transparent banking system will suddenly become opaque. Your bank balance will become invisible. Your handy-dandy online banking web page will be replaced by a "Service Temporarily Unavailable" notice. The willingness to accept checks will evaporate in less than a day. The FUD factor (Fear, Uncertainty and Doubt) will be overwhelming.
Most businesses will no longer honor personal checks, corporate checks, or bank money orders. Showing a merchant your most recent bank statement isn't likely to sway him. Again, the FUD factor will rule.
All checks in the U.S. are cleared through the automated clearinghouse (ACH) network. Most of this network is inside of banking system firewalls. Many Federal, State, and local tax payments are also handled through ACH. (A similar network exists for European banks--the Pan-European Automated Clearing House (PE-ACH), under the Single Euro Payments Area (SEPA) system).
Credit cards might not be accepted. The FUD factor will dictate that anything even peripherally related to the banking system will be suspect. (Even though the credit card companies have their own credit clearing mechanisms that are only attached to the banking milieu.)
Except for a few grandfathered recipients, Social Security payments are now made exclusively via bank direct deposit.
Military monthly pay, housing allowances, and ration payments are now made exclusively via bank direct deposit, in CONUS. That is true virtually across the board (Active component, Reserve, and National Guard.) Ditto for monthly military retirement payments.
Many State and Federal employees no longer get physical paychecks. They too, are trapped in the "direct deposit only" world.
Many Americans are now very dependent on bank debit cards (also known as a bank cards or check cards.) In fact, many people don't even carry more than a few dollars in their wallets. If our world suddenly goes "cash only" most people will suddenly be out of cash.
ATMs, debit card transactions, and online banking can be shut down in minutes. This huge vulnerability of banking customers has already been evidenced by a few minor glitches.
Online payment systems like PayPal will be sharply degraded, because they rely on their ability to move funds to and from banks. More importantly, online payments are inextricably tied to credit card processing. If credit card processing is suspended, then online payments will be "dead in the water."
Many regular monthly payments such as mortgages, insurance premiums, and some utilities are automatically debited from checking accounts. These will all come to a screeching halt.
SWIFT wire transfers will probably be suspended, freezing a good portion of global commerce. Similarly, International ACH transactions (IATs) will also be shut down, since they access the U.S. ACH network.
The ability to process credit card payments will be dubious, at best. Many merchants will wisely "just say no" to credit cards, even if their countertop POP terminals are still functioning and show available credit. And the fact that many credit cards are now just debit cards in disguise will only add to the reluctance of merchants to take any credit cards.
Point of purchase (POP) processing of credit and debit cards at gas stations has become ubiquitous. Nearly everyone now uses the "pay at the pump" option. Gas and diesel could become "cash only" transactions.
Most American families keep less than $300 in cash at home at any given time, including their kids' piggy banks. For most families, that wouldn't cover even one month's rent.
Formerly distributed as "Food Stamps", the USDA's Supplemental Nutrition Assistance Program (SNAP), provides benefits to low income families through Electronic Benefit Transfer (EBT) card payments. These cards look much like credit cards. And like checks, EBT payments are all routed through the ACH network. Again, this is a network that is inside banking system firewalls. If the banking system goes into holiday mode, then it may take days or even weeks to get EBT processing back on line. If the EBT payments stop, we can expect riots in metropolitan areas in less than a week.
Gift cards will be "iffy." There are now two types of gift cards: "open loop" (or "network") cards and traditional "closed loop" cards. Open loop cards are issued by banks or credit card companies and can be redeemed many places. It is likely that only closed loop cards will be honored by the issuing stores, because merchants will fear that open loop cards might have been zeroed out elsewhere. (If they can't confirm the available balance, the card will be refused.)
Most Internet vendors are almost entirely dependent on credit card processing. If that processing system is disrupted, then mailorder firms will either have to cease operations, or have them slow to a snail's pace, and be restricted to only non-bank money orders.
Reversion to U.S. Postal Service money orders (commonly called "PMOs") will only be partially viable solution. This is because many small town and rural post offices don't keep enough cash in their tills to be able to hand you $1,000 when you go to cash a PMO. You may be thinking, "Oh well, I'll just ask them to write me a blank PMO, in exchange. Nope. A recent change to postal regulations designed to curtail money laundering banned money order-for-money order issuance. Bummer. And if you are considering using "Forever" postage stamps, hold your horses. Under a hygiene regulation published in the Domestic Mail Manual (DMM), postal clerks are not allowed to cash out ("buy back") stamp booklets unless they are still in their sealed clear plastic master packages. So it might take decades to use up your Forever stamps, or you will be forced to liquidate them on the gray market at a slight loss.
Bank safe deposit boxes will probably be inaccessible. Plan accordingly.

Wednesday, June 13, 2012

How The Banking System Is Preparing For The Collapse Of The Dollar

Central Bank Money-Printing: $6 Trillion...and Counting

Many more years of money printing from the world's big four central banks now looks destined to add to the $6 trillion already created since 2008 and may transform the relationship between the once fiercely-independent banks and governments.

United States Federal Reserve
Tetra Images | Getty Images
United States Federal Reserve

As rich economies sink deeper into a slough of debt after yet another wave of euro financial and banking stress and U.S. hiring hesitancy, everyone is looking back to the U.S. Federal Reserve, European Central Bank [cnbc explains] , Bank of England and Bank of Japan to stabilize the situation once more.
What's for sure is that quantitative easing [cnbc explains] , whereby the "Big Four" central banks have for four years effectively created new money by expanding their balance sheets and buying mostly government bonds from their banks, is back on the agenda for all their upcoming policy meetings.
Government credit cards are all but maxed out and commercial banks' persistent instability, existential fears and reluctance to lend means the explosion of newly minted cash has yet to spark the broad money supply growth needed to generate more goods and services.
In other words, electronic money creation to date - whether directly through bond buying in the United States or Britain or in a more oblique form of cheap long-term lending by the ECB - is not even replacing what commercial banks are removing by shoring up their own balance sheets and winding down loan books.
Global investors appear convinced more QE is in the pipe.
"It is almost as if investors are saying QE will happen no matter what," said Bank of America Merrill Lynch's Gary Baker.
BoA Merrill's latest monthly survey of 260 fund managers showed nearly three in four expect the ECB to proceed with another liquidity operation by October.
Almost half expected the Fed to return to the pumps over the same period.
The BoJ has already upped asset purchases yet again this year and Bank of England policy dove Adam Posen said on Monday the BoE should not only buy more government bonds but target small business loans too.

Tuesday, June 12, 2012

It Starts: The Government’s Plan to Steal Your Money.

There are consequences to being flat broke.
There are consequences to investing any level of confidence in a financial system underpinned by debt and the creation of paper currency.
There are consequences for ignoring reality and pretending that everything is normal.
This is one of them: European officials yesterday flat out admitted that they were discussing rolling out a series of harsh capital controls across the continent, including bank withdrawal limits and closing down Europe’s borderless Schengen area.
Some of these measures have already been implemented sporadically; customers of Italian bank BNI, for example, were all frozen out of their accounts starting May 31st upon the recommendation and approval of Italy’s bank regulator. No ATM withdrawls, no bill payments, nothing. Just locked out overnight.
In Greece, the government has taken to simply pulling funds directly out of its citizens’ bank accounts; anyone suspected of being a tax cheat (with a very loose interpretation in the sole discretion of the government) is being releived of their funds without so much as administrative notification.
It’s no wonder why, according to the Greek daily paper Kathimerini, over $125 million per day is fleeing the Greek banking system.
European political leaders aim to put a tourniquet on this wound in the worst possible way.
So what are capital controls?
Simply, capital controls are policies which restrict the free flow of capital into, out of, through, and within a nation’s borders. They can take a variety of forms, including:
- Setting a fixed amount for bank withdrawals, or suspending them altogether
- Forcing citizens or banks to hold government debt
- Curtailing or suspending international bank transfers
- Curtailing or suspending foreign exchange transactions
- Criminalizing the purchase and ownership of precious metals
- Fixing an official exchange rate and criminalizing market-based transactions
Establishing capital controls is one of the worst forms of theft that a government can impose. It traps people’s hard earned savings and their future income within a nation’s borders.
This trapped pool of capital allows the government to transfer wealth from the people to their own coffers through excessive taxation or rampant inflation… both of which soon follow.
The thing about capital controls is that they’re like airine baggage fees; ultimately, all governments want to do it, they’re just waiting on the first guy to impose them so that they can shrug their shoulders, stick it to the people, and blame ‘industry standards’.
Moreover, capital controls were a normal part of the global economic landscape for most of the 20th century, right up to the 1970s. It’s been a long time coming for governments to return to that model.
Since the inception of this letter, it has been a constant theme for us to talk about the increasing threat of capital controls. Your money, your savings, your livelihood are all under attack by insolvent governments, and it’s critical to take steps to reduce your exposure.
When European financial leaders all openly admit that they’re making plans to establish continent-wide capital controls, it really begs the question– what additional warning sign does one need?
The dominos have already started falling. Iceland. Ireland. Greece. Spain. Portugal. Italy. Cyprus. Soon even France and the rest of Europe. And it will come to the United States as well. There are over 15 trillion reasons why.
So what are the most critical steps to take now?
1) Buy precious metals and store in a secure jurisdiction.
Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.
I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.
2) Open a foreign bank account.
For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.
3) Have a place to go overseas
Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.
As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.

Tear Up Your Paper Money

So what is it about money that the leaders of the eurozone don't get?
Money has been around for a while, and it's not terribly complicated.
The key element is trust. That was true when money was a piece of metal that you could bite or bounce. Now that money is just a piece of paper, it's even truer. Today's money is nothing but trust.
That's why the euro crisis is so bizarre. The euro is, in theory, one of the world's great currencies. And yet, as this crisis has demonstrated, nobody actually stands behind it. There is no lender of last resort. There is no "full faith and credit." There's nobody on the other end of the promise.

And it's as if the leaders of the eurozone wanted to go out of their way to prove it. They've taken us up to the velvet curtain and then themselves, with a self-satisfied smile, pulled it aside to show us that there is no Great Oz.
And in the process they've done major, and perhaps irretrievable, damage to their own currency and to the very idea of money in our time. If you can't trust the euro, what paper can you trust?

As solid as the solidus?

The idea of money may never have been grasped more clearly than in the Byzantine Empire, the great Roman Empire of the East.
Image: Jim Jubak
Jim Jubak
From the time Constantine the Great minted the first gold solidus in 312 until the final coin was minted by Basil II, the Bulgar Slayer, around 1020, the solidus was minted at a steady rate of 72 coins to a Roman pound of gold, or 4.48 grams of gold per coin. When coins came back to the imperial treasury -- all taxes had to be paid in solidi -- they were melted down and restruck. No wonder most Byzantine emperors were proud to put their own images on the solidus.
And it's clear that the Byzantine emperors understood the power that owning a trusted currency gave them in the world. One of the first acts of the empire after recovering from the chaos of caused by the attacks of the Seljuk Turks in Asia Minor and the Normans in Italy in the 11th century was to reverse the debasement of the currency that had begun in 1042.

Monday, June 11, 2012

Japanese officials used claims of inaccuracy to divert release of critical radiation data despite validating concerns

Embattled Japanese officials at the heart of the SPEEDI scandal have continued to maintain that the actions were justified because the data was “merely a hypothetical calculation result”, that releasing the data “would cause unnecessary panic”, and firmly insist that they did not knowingly imperil the public, but critics inside and outside Japan argue that some of the exposure could have been prevented if officials had released the data sooner.
In other interviews, officials at the ministry and the agency each pointed fingers, saying that the other agency was responsible for SPEEDI.
Economy, Trade and Industry Minister Yukio Edano admitted in a public hearing that the delay in releasing information from the System for Prediction of Environmental Emergency Dose Information (SPEEDI) was a major reason the government lost the public’s trust.
On July 4, 2011, the Atomic Energy Society of Japan, a group of nuclear scholars and industry executives, said, “It is extremely regrettable that this sort of important information was not released to the public until three months after the fact, and only then in materials for a conference overseas.”
In a 2011 interview, Goshi Hosono, the minister in charge of the nuclear crisis acknowledged that certain information, including the SPEEDI data, had been withheld for fear of “creating a panic.”
Toshiso Kosako, a top Japanese expert on radiation measurement explained the SPEEDI maps would have been extremely useful in the hands of someone who knew how to sort through the system’s reams of data.
Kosako also revealed that the SPEEDI readings were so complex, and some of the predictions of the spread of radiation contamination so alarming, that three separate government agencies — the Education Ministry and the two nuclear regulators, the Nuclear and Industrial Safety Agency and Nuclear Safety Commission — passed the data to one another like a hot potato, with none of them wanting to accept responsibility for its results.
Seiji Shiroya, a commissioner of Japan’s Nuclear Safety Commission, an independent government panel that oversees the country’s nuclear industry, said that the government had delayed issuing data on the extent of the radiation releases because of concern that the margins of error had been large in initial computer models.
But he also suggested a there may have been a public policy reason for having kept quiet.
“Some foreigners fled the country even when there appeared to be little risk,” he admitted.  “If we immediately decided to label the situation as Level 7, we could have triggered a panicked reaction.”
For months after the disaster, the government flip-flopped on the level of radiation permissible on school grounds, causing continuing confusion and anguish about the safety of schoolchildren in Fukushima.
After the nuclear disaster, the government raised the legal exposure limit to radiation from one to 20 millisieverts a year for people, including children — effectively allowing them to continue living in communities from which they would have been barred under the old standard.
The limit was later scaled back to one millisievert per year, but applied only to children while they were inside school buildings.
About 45 percent of 1,080 children in three Fukushima communities surveyed in late March 2011 tested positive for thyroid exposure to radiation, according to an announcement by the government, which added that the levels were too low to warrant further examination.
Seiki Soramoto, a lawmaker and former nuclear engineer to whom Prime Minister Naoto Kan turned for advice during the crisis, blamed the government for withholding forecasts from the computer system, known as the System for Prediction of Environmental Emergency Dose Information, or Speedi.
“In the end, it was the prime minister’s office that hid the Speedi data,” he said. “Because they didn’t have the knowledge to know what the data meant, and thus they did not know what to say to the public, they thought only of their own safety, and decided it was easier just not to announce it.”
Source: JiJi Press
Source:  NHK 
Source: CNN
Source:  The Japan Times 

America has 40 million McMansions that no one wants

Americans, especially generations X and Y, want shorter commutes, walkability and a car-free existence. Which means that around 40 million large-lot exurban McMansions, built primarily during the housing boom, might never find occupants.

Only 43 percent of Americans prefer big suburban homes, says Chris Nelson, head of the Metropolitan Research Center at the University of Utah. That mean demand for “large-lot” homes is currently 40 million short of the available stock — and not only that, but the U.S. is short 10 million attached homes and 30 million small homes, which are what people really want.

“If we are optimistic that the world is not coming to an end and we’re going to get out of this economic trough, it’s a good time to consider, when production does ramp up, how we will be building as a country,” [says Joe Molinaro head of the National Association of Realtors' smart growth program.]

Saturday, June 9, 2012

Felix Zulauf: The Euro Will Disintegrate, China Will Burst, Credit Markets Could Get Nationalized

Felix Zulauf

Felix Zulauf, a Swiss hedge fund manager, has an extremely dark forecast for the world. He recently participated in Barron's Roundtable.

As for the euro, it is a misconstruction. As I said in January, I expect the disintegration to begin in the second half of this year. That should lead the world into financial and economic chaos. My two major themes into 2013 are euro disintegration and China weakness, due to the bursting of a real-estate boom.
On the credit markets:
It is an explosive cocktail. The tower of debt is compounded by the gigantic over-the-counter derivatives market. In the past 10 years the notional value of derivatives worldwide has grown from $100 trillion to almost $800 trillion...
The potential exists for a broad-based nationalization of the credit system, capital controls and dramatic restrictions on financial markets. Some might even be closed for some time...
We are witnessing the biggest financial-market manipulation of all time. The authorities have intervened more and more, and thereby created this monster. They might change the rules when the game goes against their own interests.
Zulauf likes cash, recommends shorting emerging markets (EEM), and would but gold if it falls to $1,500.
For his full dark commentary, head to

Friday, June 8, 2012

Developing: Nuclear Cover-Up? Extreme Radiation Levels Prompt EPA Censorship, DHS Hazmat Team

In a developing story that is raising concerns over a potential nuclear cover-up by the EPA, alarming amounts of radiation were reported near the border of Indiana and Michigan and later censored by the EPA online geiger tool.  The readings, which were captured in a screenshot, measured as high as 7.139 counts per minute (CPM). This is particularly startling, as the normal radiation levels are generally between 5 and 6 CPM. Sources say that a Department of Homeland Security hazmat team has now been dispatched after ‘years’ of inactivity.
A number of community reports have came in on the subject in fact, with readers of community boards and concerned citizens offering up some interesting and intriguing information regarding the potential radiation cover-up. Discussion over the information first began to surface on internet boards like Reddit and user-submitted news source Digital Journal. In the Reddit submission, which ultimately reached thousands of comments — many from those in the area who had contacted radiation monitoring stations and other affiliated individuals — and brought some further information to light.

Latest: Explosions, Military Helicopters Filmed Near Radiation Zone
One Reddit reader, an eyewitness who reportedly attends a nearby University shared some concerning information which quickly rose to the top and was later confirmed by accompanying comments. According to the user, a large fleet of hazmat team members and reponse trucks funded by Homeland Security have been dispatched after years of inactivity. The comment, which has been screen captured for preservation, states:

“I work at a large public university next to a small research reactor that’s located near the back of campus. There’s (normally) a large fleet of hazmat response trucks and trailers parked in the nearby lot. Most of them are NIMS early response vehicles funded by Homeland Security (says so right on them). Haven’t seen them move once since I started working a few years ago. Tonight? All gone.”
The Digital Journal submission, however, was promptly edited and much of the shocking detail in the original post was wiped away. They quickly added an edit stating that the measurements must be false due to the fact that they were so high. Comments quickly cited the changes to be inaccurate and bizarre. One comment, currently at the top of the page, states:
“I don’t buy this false alarm stuff for one min! There are other independent sources doing their own measuring and coming up with similar results.”
As the comment mentions, a number of private organizations have recorded the radiation spike using their own methods to monitor the spike. One such measurement coming from the Radiation Network  in Fort Wayne, recorded a massive increase in radiation as seen in the released image below:
radiationetwork Developing: Nuclear Cover Up? Extreme Radiation Levels Prompt EPA Censorship, DHS Hazmat Team
Amid the publicity, most likely amounting to hundreds of thousands of visitors to Radiation Network’s website regarding this image — which supports the fact that there is a massive and ongoing radiation cover-up — Radiation Network then issued a quick and delayed message on their homepage stating that they must have experienced an error in their system. Additional findings however, which are now censored to the public, confirm the findings once displayed by the Radiation Network. Again, you can view the original numbers in the screen capture showing the results before they were terminated from viewing by the EPA.
Latest: Major Nuclear Base Running ‘Containment Exercise’ Amid Censored Radiation Spikes
Therefore, to add even more credibility to the spike being much more than an unforeseen error, the increase was actually measured from two entirely different and privately owned locations (BlackCat and the Radiation Network). What this means is that the statements regarding the reading being nothing more than small fluke in the system appear to be quite impossible.

Thursday, June 7, 2012

Why you should be excited about national bankruptcy

June 7, 2012
New York City
One of the great absurdities of our modern financial system is that a nation living within its means, i.e. spending less than what it confiscates in tax revenue, is no longer the norm.
Living within your means is now considered ‘austerity’. And unfair.
Whether in the UK, Europe, or North America, many voters have become so accustomed to the government’s massive role in the economy, they can’t begin to imagine how it could be scaled back.
You usually hear heavy objections from people like– “What about roads? If we start cutting budgets, there would be no more roads!”
The ‘road argument’ is one of the most widely misused defenses of government… as if there are no private roads in the world.
Chile comes to mind as a great example– the country’s very modern toll-based highway system is privatized, and the operators have a huge profit incentive to keep the roads in top condition.
In fact, the 2 1/2 hour ride from Santiago to our farm is along one of these roads, and it’s smooth sailing the whole way.
A few years ago when Chile had its major earthquake, portions of the highway system were damaged. This meant that the operators were missing out on toll revenue… so they found a solution and were back up and running in a matter of days.
It was amazing how fast they were able to pull it off when so much of their profit was at stake.
When you think about it, just about everything that government provides either is already, or could be, provided by the private sector. That there is presently a private vessel docked at the International Space Station in Low Earth Orbit is the finest testament to this concept.
SpaceX has twice succeeded in launching a vessel into space in its 10-year history with a total of just $1 billion in funding, averaging to $100 million each year… roughly 5.6% of  NASA’s massive budget.
Then there are things like the court system… where the wheels of injustice grind away at such a pedestrian pace that it can take years for a case to even be heard, let alone resolved.
Enter 21st century technology: there’s a relatively new service called Judge.Me, an online arbitration service whose decisions are legally binding in 146 countries, from Afghanistan to Zimbabwe… and yes, including the US, Canada, and Western Europe.
At just $299, disputes can be settled in a matter of days, and the firm’s case history shows that 96% of all arbitration awards have been honored.

Wednesday, June 6, 2012

Fukushima Likely to Produce “Pockets” and “Streams” of Highly-Concentrated Radiation

Fukushima Likely to Produce “Pockets” and “Streams” of Highly-Concentrated Radiation

The operator of the stricken Fukushima nuclear plant has been dumping something like a thousand tons per day of radioactive water into the Pacific ocean.
Remember, the reactors are “riddled with meltdown holes”, building 4 – with more radiation than all nuclear bombs ever dropped or tested – is missing entire walls, and building 3 is a pile of rubble.
The whole complex is leaking like a sieve, and the rivers of water pumped into the reactors every day are just pouring into the ocean (with only a slight delay).
Most people assume that the ocean will dilute the radiation from Fukushima enough that any radiation reaching the West Coast of the U.S. will be low.
For example, the Congressional Research Service wrote in April:

Scientists have stated that radiation in the ocean very quickly becomes diluted and would not be a problem beyond the coast of Japan.
U.S. fisheries are unlikely to be affected because radioactive material that enters the marine environment would be greatly diluted before reaching U.S. fishing grounds.
And a Woods Hole oceanographer said:
“The Kuroshio current is considered like the Gulf Stream of the Pacific, a very large current that can rapidly carry the radioactivity into the interior” of the ocean, Buesseler said.
“But it also dilutes along the way, causing a lot of mixing and decreasing radioactivity as it moves offshore.”
But – just as we noted 2 days after the earthquake hit that the jet stream might carry radiation to the U.S. by wind – we are now warning that ocean currents might carry more radiation to the at least some portions of the West Coast of North America than is assumed.
Specifically, we noted more than a year ago:
The ocean currents head from Japan to the West Coast of the U.S.
As AP notes:
The floating debris will likely be carried by currents off of Japan toward Washington, Oregon and California before turning toward Hawaii and back again toward Asia, circulating in what is known as the North Pacific gyre, said Curt Ebbesmeyer, a Seattle oceanographer who has spent decades tracking flotsam.
“All this debris will find a way to reach the West coast or stop in the Great Pacific Garbage Patch,” a swirling mass of concentrated marine litter in the Pacific Ocean, said Luca Centurioni, a researcher at Scripps Institution of Oceanography, UC San Diego.
Here is what the North Pacific Gyre looks like:
North Pacific Subtropical Convergence Zone Previously Secret 1955 Government Report Concluded that Ocean May Not Adequately Dilute Radiation from Nuclear Accidents
NPR reports:
CNN said that “the Hawaiian islands may get a new and unwelcome addition in coming months — a giant new island of debris floating in from Japan.” It relied in part on work done by the University of Hawaii’s International Pacific Research Center, which predicts that:
“In three years, the [debris] plume will reach the U.S. West Coast, dumping debris on Californian beaches and the beaches of British Columbia, Alaska, and Baja California. The debris will then drift into the famous North Pacific Garbage Patch, where it will wander around and break into smaller and smaller pieces. In five years, Hawaii shores can expect to see another barrage of debris that is stronger and longer lastingthan the first one. Much of the debris leaving the North Pacific Garbage Patch ends up on Hawaii’s reefs and beaches.”
Indeed, CNN notes:
The debris mass, which appears as an island from the air, contains cars, trucks, tractors, boats and entire houses floating in the current heading toward the U.S. and Canada, according to ABC News.
The bulk of the debris will likely not be radioactive, as it was presumably washed out to sea during the initial tsunami – before much radioactivity had leaked. But this shows the power of the currents from Japan to the West Coast.
An animated graphic from the University of Hawaii’s International Pacific Research Center shows the projected dispersion of debris from Japan:
Simulation of Debris from March 11 2011 Japan tsunami Previously Secret 1955 Government Report Concluded that Ocean May Not Adequately Dilute Radiation from Nuclear Accidents
Indeed, an island of Japanese debris the size of California is hitting the West Coast of North America … and some of it is radioactive.
In addition to radioactive debris, MIT says that seawater which is itself radioactive may begin hitting the West Coast within 5 years. Given that the debris is hitting faster than predicted, it is possible that the radioactive seawater will as well.
And the Congressional Research Service admitted:
However, there remains the slight potential for a relatively narrow corridor of highly contaminated water leading away from Japan …
Transport by ocean currents is much slower, and additional radiation from this source might eventually also be detected in North Pacific waters under U.S. jurisdiction, even months after its release. Regardless of slow ocean transport, the long half-life of radioactive cesium isotopes means that radioactive contaminants could remain a valid concern for
Indeed, nuclear expert Robert Alvarez – senior policy adviser to the Energy Department’s secretary and deputy assistant secretary for national security and the environment from 1993 to 1999 – wrote yesterday:
According to a previously secret 1955 memo from the U.S. Atomic Energy Commission regarding concerns of the British government over contaminated tuna, “dissipation of radioactive fall-out in ocean waters is not a gradual spreading out of the activity from the region with the highest concentration to uncontaminated regions, but that in all probability the process results in scattered pockets and streams of higher radioactive materials in the Pacific. We can speculate that tuna which now show radioactivity from ingested materials [this is in 1955, not today] have been living, in or have passed through, such pockets; or have been feeding on plant and animal life which has been exposed in those areas.”
Because of the huge amounts of radioactive water Tepco is dumping into the Pacific Ocean, and the fact that the current pushes water from Japan to the West Coast of North America, at least some of these radioactive “streams” or “hot spots” will likely end up impacting the West Coast.