Thursday, June 30, 2011

Mint To Start Selling 2011 American Eagle Silver Coins At 75% Premium To Paper, As Senators Propose Eliminating Capital Gains From Precious Metal Tran

Tyler Durden
Zero Hedge
June 30, 2011

All those who have been long awaiting the release of the 2011 American Eagle Silver coins by the US Mint can now relax. America’s official source of bullion will release the much anticipated 2011 edition tomorrow at noon, with a strict limit of 100 coins per household at the low, low price of…$59.95! Gotta love that physical-paper spread… It is almost as good as the gold-tungsten compression pair trade.
2011 American Eagle Silver Proof Coins Available June 30
WASHINGTON – The United States Mint will open sales for the 2011 American Eagle Silver Proof Coin at noon Eastern Time (ET) on June 30, 2011. The coins will be priced at $59.95 each. Orders will be limited to 100 units per household.
The obverse (heads side) of the coin features a rendition of Adolph A. Weinman’s Lady Liberty in full stride, with her right hand extended and branches of laurel and oak in her left. The reverse (tails side), by former United States Mint Chief Engraver John Mercanti, features a heraldic eagle with shield, an olive branch in the right talon and arrows in the left.
The American Eagle Silver Proof Coin contains .999 silver. The one-ounce coin is struck on specially burnished blanks and carries the “W” mint mark, indicating its production at the United States Mint at West Point. Each coin is encapsulated in protective plastic and placed in a blue presentation case with a Certificate of Authenticity.
Orders will be accepted at or at 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT. The American Eagle Silver Proof Coin is also available for purchase through the United States Mint’s Online Subscription Program. Customers who enroll in the program can have the American Eagle Silver Proof Coin and other select products automatically billed and shipped as each product becomes available. Visit for more information about this convenient shopping method.
The United States Mint, created by Congress in 1792, is the Nation’s sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.
Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of June 30 2011, at noon ET shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint’s Frequently Asked Questions, Answer ID #175.

And in what is probably far more important news, GATA informs us that Utah Senator Mike Lee, has joined two other senators to introduce legislation that would eliminate capital gains from transactions involving gold and silver, “a change that he hopes will encourage a change in the nation’s monetary system.” The reason: “This bill is an important step towards a stable and sound currency whose value is protected from the Fed’s printing press.”

Utah Sen. Mike Lee joined with fellow Republicans on Tuesday to introduce legislation that would jettison federal capital gains taxes for gold or silver coins.

Lee’s measure would treat gold or silver coins the same as regular U.S. currency in transactions, a change that he hopes will encourage a change in the nation’s monetary system.

Utah was the first state in the nation to make gold or silver coins legal tender for transactions and removed any state capital gains taxes. Twelve other states have made or are considering such a move.

Lee noted that the U.S. dollar has lost about 98 percent of its value since the Federal Reserve was created in 1913.

“This bill is an important step towards a stable and sound currency whose value is protected from the Fed’s printing press,” Lee said.

Lee co-sponsored the legislation with Sens. Jim DeMint of South Carolina and Rand Paul of Kentucky.

Good luck with that. And some words of advice to Senator Lee: stay away from rapidly moving objects and swimming pools.

Who Cares About Your Bet If The Casino Is Demolished?

By Silver Shield
June 30, 2011

For the past six months, I have been building the case for you to sell every single paper asset you have and buy real assets. I have had my run-ins with famous traders/traitors who seek to make trades in and out of the market. These guys are making cute bets while the music/propaganda is still playing and the booze/money is still flowing. For the most part I am not arguing about their bets. I am telling them that the whole 20-story casino is going to collapse on top of them and to cash in their chips and get out.

Recently, I have been asked about this strategy of selling silver and gold now to buy it back at a lower price later. When I asked these two members where they got that idea, it was from two different paid sites that seem to cover many of the same issues I cover. Both guys are letting their paid members know that they are selling now to buy back silver and gold later at a lower price. This is not two months ago; this is this week.

Let’s think this through for a minute. I understand that many people love the banksters’ casino and feel a need to give them your money; that is why you trade. For many it is a disease. Others feel they are really good at it and that it is not really gambling. (All gamblers feel that when they are winning.) You also understand that I am a physical silver purist whose reasons for buying silver go way beyond short-term profits. Let’s play out the case that was put out yesterday by one of these paid services.

The first trade focused on gold breaking the 50-day moving average yesterday and the upcoming Greek vote. He is expecting a 3% to 8% drop in gold within a day or so. After that, he says buy the dip. My first problem is that this guru is not telling his paid audience what a risk they have by simply having money in the system/casino. When this deflationary crash does happen, the entire banking system is at risk, not just the assets they are speculating on. What good is it to be right on the bet yet not be able to really profit from it?

In 2008, we saw that the buck was broken on money markets and many bank failures followed. This crisis will be magnitudes worse because nothing was fixed and the problem is much bigger than in 2008. This is no longer an American problem, it is a global problem. Compounding this problem is that we have burned through all of the political and financial capital we had from the last crisis. I mean, are we really going to listen to another Treasury Secretary about “too-big-to-fails”?

No, after three years of declining unemployment, burning through their nest eggs, and the dark clouds on the horizon, people are desperate and they are going to blow up. Confidence will not be restored and people will finally do the right thing and stop gambling in the rigged casino of the banksters. This will lead to runs on banks as people pull cash out. This will lead to people emptying their brokerage accounts and further paper asset depreciation. The sickening thought of losing everything to a system so volatile will cause people to do extreme things. So simply having a trade right is not enough of a reason to gamble, especially when the casino is set to be demolished.

Even if this paid writer suggested that people do this with physical cash and physical gold, I would still have a problem. When this event that shakes the foundation of our entire banking system happens, who says there will be gold or silver available to buy? Or that real physical prices will not be dramatically higher? After all, the only logical place for all of this paper money is in real tangible assets. There will be a mad rush for anything real, be it food, energy, clothes, guns, and precious metals. Especially after the Fed and the Treasury print trillions more to save the system. The head fake deflation will bring about the inevitable hyperinflation. The paper price of gold and silver may be lower, but “the real” on the street price will either be much higher or not available at all. This is a very serious issue that these paid writers do not discuss.

Then there is the very real risk of a CRIMEX default. I have made the case that there has been a war against silver since 1873 and that silver is the most manipulated asset in the history of the world. The reason for this manipulation is that it is the “silver bullet” to the quadrillion empire of lies that the elite have built on debt and war. Their massive paper manipulation can go on forever, up until the point that they can no longer deliver real silver that they are trading 100 times over.

As you can see from the 45 degree angle of depletion in the registered inventory, this event is closer than you think. As we get closer to “point zero”, the quicker it will become as people get nervous and pull their metal out — much like a bank run. Instead of trading in electronic digits for FRN’s, they will trade in their paper receipts for the real metal. If there is a default, all paper holders will get screwed as the CME settles for some fictitious paper price of silver instead of the real physical price.

The next paid guy spent an hour describing all of the exact same issues I cover and then says to load up on Federal Reserve Notes. His reasoning was that a deflationary crash is going to make everything cheap for dollar holders. Does this guy not realize that if the banking system goes, the currency goes? Does this guy not know that we have $1.4 trillion budget deficit this year and $4 trillion in short term debt to be rolled over in the next year and a half? Does he not realize that the EU is facing a $6 trillion crisis that is just starting with Greece?

The Fed is buying 80% of our debt right now and that is going to end this week. If debt/money is not created in excess of the debt plus interest the year before, the entire system implodes. So the choice is to either let the system implode — which would kill the dollar with massive banking defaults, the cessation of commerce, and massive social unrest both here and abroad — or they have a hyper-inflationary event where the Fed has to react to another trillion-dollar crisis and print trillions more to cover the problem up. That would lead to a worldwide rush out of the dollar as it becomes clear to all foreign and domestic investors that the Fed is determined to destroy the value of the dollar and that people better find a better place to keep their money.

Either way, deflation or hyperinflation, the Federal Reserve note is not going to make it out alive. In fact, that is the plan. Things that cannot go on forever won’t. Our system is unsustainable and the plan is to crash it and create a new global paradigm. I believe that the elite will fail and we will see massive decentralization. Either way, the dollar paradigm is toast.

If you insist on playing this game of trading and want to take advantage of a price drop, here is something you could consider. If there was another massive attack on silver like in 2008, which I don’t think will happen, you can borrow against your stash and buy more physical silver. I am not a fan of leverage or debt, but if we go through what we went through in 2008, I would seek to leverage my metal at the bottom and load up on a very depressed price. If you think about it, the more metal you put in, the more you can borrow, then the more you can put in. It would have to depend on the terms and your ability to handle the payments, but it is something to consider. I would prefer you sell every single paper asset you have before you try something funky like this.

For guys like me that have NO paper assets, this is something to consider. I mean, right now you can borrow 5 years on a car for 2.9%. Why wouldn’t they do the same thing on your metal, sitting in their bank? Hmm… 2.9% versus the 25% silver has been returning…especially if it gets whacked and then the CRIMEX looks to default.

There is an old saying in the marketing world: If you can describe a problem better than your audience can, they will assume you know the answer and follow you anywhere. This stands in direct opposition to what I have been trying to do here. I am about you questioning everything, including me. Please do not assume because someone is 90% right, that it means he is right on the final 10%. The best lies always have a lot of truth in them. Question everything, educate yourself and be ready to stand on your own.

Chris Duane writes under the pen name of Silver Shield. He spent six years researching and creating the Sons Of Liberty Academy. The academy’s sole purpose is to help people become aware and prepared for the mathematically inevitable world-wide fiat currency collapse. He is currently writing for Don’t Tread On Me, one of the fastest-growing blogs on the internet.

The Greek Tragedy Could Engulf Many More European States

Bob Chapman
International Forecaster
June 30, 2011

Greece and Europe are still in crisis as the European countries scramble for a solution. The fact is that ultimately Greece has to default. The banks and other nations of the euro zone should have never allowed the situation to progress to its current stage. As we have said over and over again for 13 years, one interest rate can never fit all, because each country is at a different stage of development. The very creation of the European Union and the euro zone flies in the face of anthropological and cultural history reaching back thousands of years. That said, the leaders of the EU cannot possibly save Greece and the other five nations in serious financial trouble and save the euro and the European Union simultaneously. It is simply impossible if for no other reason, which is the cost, which is $4 to $6 trillion. Eventually all six will have to be cut loose reducing the euro zone from 17 to 11 members, all of which will have to face eventually more trouble among the remaining weak members. Thus, it is only a matter of time before the euro is history. At least for now there will not be a euro as the basis for a one-world currency and the EU as the cornerstone for world government.

If a short-term solution is not found by European bankers and nations Greece will simply default, leave the euro, return to the drachma and put its own house in order. If a short-term solution was found it might last a year and it would be back to the same underlying problem – bankruptcy and the path we have described.

The problem is not only Greece, but also Ireland, Portugal, Spain, Italy and Belgium. They are all in financial situations similar to Greece. Once Greece goes they will all follow. They will leave the euro and leave behind a long string of insolvent banks and countries, which will negatively effect England, the US and the world. Greece and the others probably will take down the world’s financial system.

Spain will probably be the next failure, a country on the edge of revolution. Then will come Italy and Belgium. If you remember last May 2010 we predicted these events for the second half of 2011, and they are about to descend upon us. All you have to do is look at the video links from Spain from last week and you know where this is all going and how it is going to end up. Deliberate police brutality at its worst. They attacked and injured women and children for no reason and without provocation. Spain’s unemployment, among the young is 43%. That is explosive and it is going to get much worse.

Even China is not without its problems as world trade slows and unemployment rises. Those problems will affect all of Asia including Australia and New Zealand. As we have often said no nation on earth is going to escape this worldwide deflationary depression. We do believe though that some nations will fare much better than others.

On the short to intermediate term we expect these problems to produce a temporarily stronger dollar. The dollar for the moment being the best of the worst. In spite of this abnormal dollar strength we expect gold and silver to hit new highs and to outperform all other asset classes, as investors realize gold is the only real currency and that it will reflect the ravages of inflation and perhaps hyperinflation. The euro will fail and again the new world order crowd will have been defeated.

Any corporations involved in finance worldwide are going to go through perilous times and most will not survive. This next episode will make the last three years of credit crisis look like child’s play.

One of the issues, which today lurks in every financial historians’ mind is will Greece be the catalyst that brings about the next credit crisis. We think it could very well be. From our perspective we believe the only thing that can bring about an exit from the Greek problem is a reasonable deal offered by the bankers, sovereigns and the IMF, otherwise there will be default. This is the first time in more than 50 years that an entire nation has faced off against the banking community. The world public is discovering how the criminal banking system works and how it is impossible to deal with them. Austerity brings about weakness and inhibits the ability to grow. Growth is needed to increase revenues to pay down debt. This is the IMF formula used since 1948 to control and loot countries that stay perpetually in debt. As you have seen secondary rated debt yields have been moving higher and in time will cause quality debt yields to move higher as well. Do not forget waiting in the wings we have Spain and Belgium. Italy the strongest of the group already has public debt in excess of 120% of GDP. Do not forget if they all go the losses will range from $4 to $6 trillion, which means just that collective debt is unpayable, never mind what is owed in Europe, the UK and the US. The damage that will be caused by such default will most certainly take down the world banking system. In addition, short-term debt has been the mainstay for sovereigns for the past 15 years. In the US alone it makes up more than 60% of borrowing. That means the US Treasury will have to replace trillions of dollars in borrowings. That means the Fed will have to buy the Treasury’s debt and if they do not the US financial system will collapse. At best the Fed’s purchases are only a short-term solution. There has to be a major meeting of all nations to devalue and revalue all currencies against one another and a multilateral debt default. That would be followed by the appointment of a new world reserve currency backed 25% by gold. It could be an index of currencies, all gold backed, or it could remain the dollar.

One of the consequences of a QE3 type of event and the pressure put on the world bond markets by near insolvencies or insolvencies is higher interest rates accompanied by higher inflation. The US Treasury yields may be among the lowest ever due to manipulation by the Fed, but the rest of the world is not as fortunate. Over the next few years the Treasury will have to sell as much as $2.5 trillion in debt annually. If the Fed continues to purchase 80% that would mean they’d have to buy about $2 trillion worth a year from funds they created out of thin air. If you look back at QE1 and 2 they have already created $2.6 trillion, part of which is being recycled, so it is safe to say they will have to increase participation if domestic and foreign off take stays about the same. Somewhere along the way the US credit rating will have to be lowered. That could cut back in participation from sources other than the Fed. Such a scenario with QE2 and stimulus in the pipeline to hit next year, 2 to 3 years from now inflation could turn into hyperinflation near 50%.

One has to ask themselves, why would the Fed do what it is doing? Very simply the only other alternative is deflationary depression. Worse yet, they know what they are doing does not work. In QE1 and 2 they temporarily bailed out the financial sector and the Treasury. The additional legislative assistance of more than $1.7 trillion gave transitory GDP growth and relief. In that space of time real inflation grew from 5% to more than 10%. Wall Street, banking and the Fed either do not know what they are doing or they are deliberately trying to destroy the present financial system.

The large issuance of Treasuries has not affected bond prices too badly. The yields have fallen and the bond prices have risen due to the overwhelming presence of the Fed in the market. The Treasury market may be strong, but upward pressure is being seen in other bond yields. That typical crowding out is to be expected and as a result of Treasury action liquidity is starting to dry up. We should add that about half of buyers have been buying foreign bonds, removing liquidity from the US market. In some portfolios we have seen about half has been invested in the bonds of the six European nations, which have financial problems. We learned 50 years ago that you never ever reach for a yield.

How the debt market reacts remains to be seen. Its performance hinges on Fed performance. The question is how long will it take the Fed, QE3 or its equivalent to be implemented? All the usual excuses are appearing, so we would guess it is not far away, or it is already being implemented.

Again, we repeat that you have to be extremely cautious in today’s markets. There is Treasury funding, municipal and state problems yet to be assessed, Europe’s six problem countries, Greece is still not settled, Japan is partially disabled, England has serious problems and China does as well. Asia is doing fairly well as is Russia and India. Down south it is Chile, Brazil and Argentina. The last two we have serious misgivings about. The other two pleasant surprises are Mexico and Canada, both of which are doing very well. They both have not used any stimulus, which makes their low unemployment and inflation impressive along with 4.5% GDP growth rates. As you can see there are some bright spots in the world of black and gray. When all is said and done corporatist fascism will destroy America and themselves in the process.

Unemployment is again reasserting itself now standing at 22.6% and that certainly affects consumer spending. It is not surprising that the long-term unemployed are dipping into their retirement savings. Even with Medicaid, food stamps and long-term unemployment benefits American workers are running out of money. That will accelerate as the Medicaid and food stamp budgets are cut and as we observe one by one states are reducing the time people can remain on extended unemployment benefits. These workers as well owe a huge amount of debt, and that will lead to bad debt for bankers. That is why the BIS, the Bank for International Settlements, is demanding banks sequester more reserves and cut down on loans and market speculation. Yes, there is excessive regulation and outrageous deficit spending by government, but the real problem is governmental, state, municipal, corporate and individual debt. Under these circumstances spending cannot grow especially with inflation hovering above 10.2%, which we believe will be 14% by the end of 2011. First quarter GDP was 1.8%. If you subtract QE and stimulus 2 you get less than zero growth. The bad news is it will be officially zero to 1% for the second half of the year putting the economy at a GDP loss of zero to 2%. If the Fed doesn’t find a way to inject an additional $850 billion into the economy shortly and over the next year we could see a real minus 4% to 5%. In addition, lenders are in the process of making a deal on past and future mortgage foreclosures. The banks wanted to pay $5 billion but in reality it could be more like $25 billion. That should finally move the banks to foreclose on more than a million additional homes. How many people can the streets and overpasses hold? The State Attorneys’ Generals’ settlement will buy the states a few additional months. As we predicted eight years ago this staggering inventory of homes will eventually be nationalized and renters will be paying the rest to the federal government via something resembling Fannie Mae and Freddie Mac. Yes, household debt has fallen from 130% of GDP to 114%, but it still is almost 40 percentage points above where it should be. Even at 90% to 100% it is unsustainable. Incidentally, we have not included commercial real estate, which the Fed is currently subsidizing.

Debt and its deflationary aspects have been neutralized for 11-1/2 years by inflation deliberately caused by the Fed to offset the deflationary drag. Trillions have been spent in the form of debt and very little has been accomplished, except for keeping the country out of deflationary depression, at the cost of rampant inflation. It now looks almost certain that the Federal Government can offer little additional help. That means the Fed has to bail out the government, the bankers and the people. If that help is not forthcoming you must prepare for a deflationary depression. Of course such a policy if implemented will cause hyperinflation. Where is the exit? Where do you go? Interest rates are already zero and have been for a few years. That, of course, was to give the financial sector free money to speculate with, as loans fell 25 to 30 percent.

There will be no success from QE3 or any additional stimulus for the general economy. The decision to cross the Rubicon is history and the troops are in the city. There now can only be one eventual outcome.

The criminal syndicate that runs banking, Wall Street and government has generated plenty of adverse publicity in the recent past. There was Madoff and his Ponzi scheme, but he was not connected with the elitists. He was a wannabe. We now have a 635-page report with almost 1,000 attachments from the US Senate that the Senate believes is cause for criminal action against Goldman Sachs. There has to be an elitist sacrifice and Goldman may be it. They created and sold structured finance products that foisted billion of dollar of losses on investors, while the banks then went short the bonds knowing they were toxic waste. At best Goldman and its executives will avoid prosecution, but whatever the outcome their business will never be the same again. If you remember they not long ago, in not admitting or denying, paid about a $770 million fine, pertaining to toxic mortgages, but they got to keep about $4 billion. Sixty percent of those bonds were placed in Europe and since then there has not been a civil or criminal action against these and other crooks involved in mis-rating the bonds. That tells us somehow the Fed has guaranteed those losses. We originally recommended a short on GS stock at about $190.00. The stock is currently $140.00. If this scenario plays out it could retest $67.00 and perhaps break that support level. Crime marches on: on Wall Street and the people who really run your country.

The government lies and the controlled media swears to it. The latest proclamation and cover-up was spun in as many ways and directions as the media dared to take it, and still retain some semblance of propriety. The latest on the CPI front is that increases were reduced on gas prices, when in fact gas prices rose. We always say if you are going to be a liar, be a good one. May inflation officially was up 3.6%, up from 3.16% in April year-on-year. It supposedly was up 1.15 last November, so you can see it is progressively growing. That elevates real inflation to 10.6%. It is very obvious that the general media is being instructed as to what to say and how to say it. In addition the Keynesian economists, acting as trained seals, find every illicit excuse to raise the spectre of falling inflation or deflation. That is the kind of world we live in. Lying is socially and politically acceptable. Calling the deception misleading certainly begs the question. Most readers do not realize it but core inflation is some 40 years old, so this canard has been around for a long time in various guises. The bottom line is that it is misdirection and subterfuge.

The propaganda continues and, of course, omits that US inflation is the highest in three years when it reached 14.5% unofficially. That is when interest rates will really have to start rising. At the same time the Fed balance sheet is reaching for $3 trillion. Disguising the problem won’t change it or the ultimate outcome.

Greece: This is What an IMF Riot Looks Like

Kurt Nimmo
Thursday, June 30, 2011

The European stock market reacted jubilantly to news that the Greek parliament agreed to Mafia-like terms demanded by the international loan sharking operation, the IMF. Investors looked myopically at the boards showing the London FTSE 100 up a smidgen along with Frankfurt’s DAX and CAC-40 in Paris. In the United States, stock futures ticked up modestly as Wall Street opened for the day. Dow Jones Industrial Average futures for September delivery and Standard & Poor’s 500 contract for the same month are up 0.2% at 12,238.00 and 1,306.30, respectively.

Markets reacted triumphantly in South Korea, India, Brazil and elsewhere. It has turned out to be a red letter day for the globalists and the financial class.

Meanwhile, on the streets of Athens, an IMF riot is in full swing. “Despite continuing protests – some violent – on the streets of Athens, investors were pleased that a euro-zone financial disaster had been averted,” the Wall Street Jounral cheerfully reports today.

The IMF riot will undoubtedly get worse later today as the Greek parliament figures out the mechanics of bankster-imposed austerity. It’s business as usual for the financial class on Wall Street, and in London and Brussels.

“Although one would not think it from the pictures from Athens, European policy makers have expressed their approval that Armageddon has been averted following the vote of approval in the Greek parliament,” said Dermot O’Leary, economist at Goodbody Stockbrokers.

Of course, it depends on how you define Armageddon.

When the IMF eliminated food and fuel subsidies for the poor in Indonesia in 1998, the people went into the streets and rioted. After the banksters jacked up water prices in Bolivia, a series of IMF riots broke out. There were riots in Ecuador over the rise in cooking gas prices imposed by the World Bank.

According to former chief economist at the World Bank, Joseph Stiglitz, the IMF and World Bank meticulously plot these riots. It’s all part of the plan. Greece is being gutted economically so the banksters and transnational corporations can rush in and buy assets and resources for pennies on the dollar.

In 2008, as the engineered subprime mess began to roll and threaten economies, then IMF boss Strauss-Kahn (since disgraced and forced to resign) predicted advanced countries would ultimately experience what Greece is going through right now.

During a speech in Madrid, Strauss-Kahn said that “social unrest may happen in many countries – including advanced economies” if governments failed to adequately respond to the financial crisis. “He added that violent protests could break out in countries worldwide if the financial system was not restructured to benefit everyone rather than a small elite,” the Guardian reported.

IMF riots are planned across the board as the global elite consolidate wealth and unleash crisis after crisis in the lead-up to a planet-wide banking system, world government and a globalist authoritarian police state dictatorship to keep the rabble in line.

In Greece, this is what an IMF riot looks like. It will look similar when it finally reaches the rest of Europe and the United States, as planned.

Disunited Americans Cannot Stand Up To Washington Tyranny

Observations On The Day

Paul Craig Roberts
Thursday, June 30, 2011

Americans are a doomed people for many reasons. One reason is that they are disunited and at one another’s throats and, thus, cannot stand up the tyranny issuing from Washington.

For example, the governments of Georgia, Alabama, and Florida, states that share borders, have been fighting for more than two decades over the water in Georgia’s Lake Lanier, located a few miles northeast of Atlanta. In 2009 a federal district judge ruled that it is illegal for water to be drawn from the lake to meet the needs of Atlanta’s three million residents. The judge stipulated that the three states had until July 2011 to reach an agreement, failing which Atlanta would be restricted to the amount of water it received in the mid-1970s, when its population was less than one-third of its present size.

Obviously, the ruling was a major incentive to Alabama and Florida not to compromise. Either the judge gave no thought to this fact or he was unconcerned that 3 million Atlantans would find themselves in drought circumstances.

At the last moment on June 28, with two days to go before Atlanta was cut off from its water supply, a federal appeals court ruled that the district court judge’s decision was incorrect and gave the US Corps of Engineers one year to make a final decision concerning the allocation of Lake Lanier’s water to the three states.

The state of Alabama, displaying total callousness to its 3 million fellow American citizens in Atlanta, has announced that it is appealing the ruling, and Florida is “studying the ruling,” no doubt looking for a way to get Atlanta’s share of the water.

Quite clearly, this is not a United States. Even the old Confederacy cannot stand together. For more than two decades the three states have not sat down to make a fair deal. Instead, they have been suing in federal courts, each seeking advantage.

In California, water is being attacked from a different direction. Rich corporate and financial interests realized that control over water was control over life — the ultimate power. These powerful few are moving to deregulate and privatize California’s water supply in order to exploit their control over the life-sustaining substance. California’s dry spell has been hyped into a cataclysmic crisis that pits small farmers against urban environmentalists. This is theater to distract a gullible public and media from the fact that privatized water can be turned into paper water, for which derivatives can be created and speculation can ensue. “Privatized water” has nothing whatsoever to do with providing water to mere people. Its purpose is to provide billions of dollars to financial interests.

Speaking of paper profits, today the stock market was up on the news that the “democratic” Greek government, despite the overwhelming opposition of the Greek people, agreed to the imposed austerity measures in order to borrow from the European Central Bank and International Monetary Fund, both being illegal loans under the two organizations’ charters, the money to pay private foreign banks that bought Greek government bonds. The private banks are being fully compensated for not doing due diligence.

The financial markets, in their utter stupidity, think — if that is an appropriate word — that it is good news the Greek government has agreed to drive the Greek economy deeper into recession in order to acquire more loans with which to pay off loans that it cannot pay off.
The financial press thinks that the austerity measures that the Greek government has to accept and the sell-off of the public domain — water companies, ports, a string of Greek Islands, the state telephone monopoly, the state lottery and the reduction in pay, employment, and social services — somehow makes the Greek economy more capable of producing the income needed to service the new IMF and ECB loans that pay off the private German, French and Dutch bankers.

If Wall Street and the financial sector had an IQ as high as 100, they would know — every one of them — that the “bailout” is pushing Greece deeper into a hole, and that Greek’s ability to pay will decline.

Why doesn’t the Greek government know what is completely obvious when the people in the streets protesting are fully aware of the fact? The only answer to this question is that the Greek politicians have been bought by the debtor banks. Greek “democracy” serves the debtor private banks, not the Greek people.

The vaunted financial markets are not rational. Indeed, they are the opposite. Financial markets turn obvious bad news into good news in order to drive up prices of financial assets. Truth and facts mean nothing whatsoever to financial markets. The financial markets are based on lies, illusions, and delusions that drive up asset prices. That is what you are investing in when you invest in Wall Street.

In the US today we have president obama challenging congress on the “default crisis.” The american president (lower case is used to indicate the insubstantiality of american political institutions, including that of the country itself) who refuses to obey the War Powers Act which requires that he communicate with congress before he takes america to war, told congress that the entire cost of deficit reduction cannot be put on the backs of america’s poor unless he has the cover of taking away a few special interest tax breaks. Obama is telling the nitwits who, like himself, are bought-and-paid-for by the interests, that to continue the game the rich corporations have to give up something, like a few insignificant tax breaks. If the congressional idiots catch on, then obama can emphasize how he is making the rich pay, while he covertly shifts the burden to the poor and to the remnants of the american middle class, a destroyed entity.

The entire default “confrontation” between “america’s first black president” and congress is fraudulent. If attacking Libya is so much in the national interest that obama doesn’t need to inform congress, it is completely obvious that it is too much in the national interest that the US government not default.

The US default on its bonds would not only wreck the international financial system, it would destroy american power. Nothing is more in “the national interest” than Washington not defaulting. Therefore, it is completely obvious that if congress does not raise the debt ceiling, the Federal Reserve will continue to purchase the Treasury’s debt issues so that the government can pay its bills. The Bush regime, with its Federalist Society brownshirts, established once and for all that the american president becomes Caesar during war and that it is the president’s prerogative alone to declare what is in the national interest. Congress has become unnecessary, like the Roman senate under the Caesars.

There is no chance whatsoever of the US government defaulting. Yet, the “default crisis” is the main story purveyed by the US Ministry of Propaganda.

On the environmental front, more devastation awaits america. This is not about the nuclear radiation dangers from the floods, no matter how real. It is more simple. The US Bureau of Land Management (BLM) has also been “privatized” and has become a government servant of private interests.

The BLM has been “privatized” in the sense that those who actually cared about the purpose of the law and the preservation of public lands have been displaced by new appointees put in power by the Clinton and the Bush regimes. Yes, you guessed correctly, the BLM’s management consists of corporate appointees, who are doing what they were put there to do, which is to steal the public domain for private profit.

For equines or horse lovers, this is turning out to be a hard blow. According to Marilyn Wargo, who is knowledgeable on this issue, the BLM is about to exterminate two-thirds of the remaining wild horse herds that exist on the pubic’s lands in Nevada, Wyoming, Oregon and Colorado.

Like everything else in our “freedom and democracy” country, this extermination is being done despite powerful public protests by citizens — citizens most likely characterized by Homeland Security as “animal rights terrorists.”

Who stands to gain? Obviously, cattle and sheep corporations that take over the grazing rights from wildlife. Americans have still not understood that one accomplishment of the Bush Regime was to put government agencies that were created to protect the public domain into the hands of corporate interests. The fusion of corporate and government interests in the US today is more complete than in Fascist Italy.

There is no freedom, no democracy, and no government accountability in Amerika, a fascist state.


Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously the editor of the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

Wednesday, June 29, 2011

Obama Pushing U.S. To Economic Disaster: Google Founder

International Business Times
June 29, 2011

The eccentric and frugal billionaire college professor who helped Sergey Brin and Larry Brin develop Google has warned that US President Barack Obama is pushing the U.S. towards a path of economic disaster.

Stanford University’s David Cheriton, who is worth almost $2-billion according to Fortune magazine, believes that innovative and creative American entrepreneurs are being driven out of the country by Obama’s fiscal policies.

Cheriton told BBC: “When you look at, say, Larry and Sergey of Google, they made billions of dollars, but they contributed many more billions of dollars to the US economy. And so we should be empowering these people; we should be cultivating more of the next generation of those types. And yet, I think there’s almost a hostile attitude towards people who have been successful in this country.”

He added balefully that “the people that are taking the risks… or would be taking the risks… [now] start thinking twice about what it means to do this in the US.”

Full article here:

U.S. cost of war at least $3.7 trillion and counting

Wednesday, June 29, 2011

NEW YORK (Reuters) – When President Barack Obama cited cost as a reason to bring troops home from Afghanistan, he referred to a $1 trillion price tag for America’s wars.

Staggering as it is, that figure grossly underestimates the total cost of wars in Iraq, Afghanistan and Pakistan to the U.S. Treasury and ignores more imposing costs yet to come, according to a study released on Wednesday.

The final bill will run at least $3.7 trillion and could reach as high as $4.4 trillion, according to the research project “Costs of War” by Brown University’s Watson Institute for International Studies. (

In the 10 years since U.S. troops went into Afghanistan to root out the al Qaeda leaders behind the September 11, 2001, attacks, spending on the conflicts totaled $2.3 trillion to $2.7 trillion.

Full story here:

VIDEO: Bailout Battlefield - Greeks fight against foreign fiscal take-over

Russia Today
Wednesday, June 29, 2011

It’s make or break today in Greece – as the government sits down to vote on tax hikes and spending cuts. It’s viewed as the country’s last chance to stave off default – something that could have ruinous consequences for the Euro. But public opposition has turned violent. Scenes from downtown Athens resemble a war zone as protesters clash with police amid volleys of tear gas. Hundreds of thousands of people nationwide walked off their jobs in the strike against austerity. They say drowning the country in debt at crippling interest rates has failed once – and it’ll fail again.

VIDEO: Are you eating pesticides? Canola oil a great insect killer

A World Overwhelmed By Western Hypocrisy

Paul Craig Roberts
Wednesday, June 29, 2011

Western institutions have become caricatures of hypocrisy.

The International Monetary Fund and the European Central Bank are violating their charters in order to bail out French, German, and Dutch private banks. The IMF is only empowered to make balance of payments loans, but is lending to the Greek government for prohibited budgetary reasons in order that the Greek government can pay the banks. The ECB is prohibited from bailing out member country governments, but is doing so anyway in order that the banks can be paid. The German parliament approved the bailout, which violates provisions of the European Treaty and Germany’s own Basic Law. The case is in the German Constitutional Court, a fact unreported in the US media.

US president George W. Bush appointed an immigrant, who is not impressed with the US Constitution and the separation of powers, to the Justice (sic) Department in order to get a ruling that the president has “unitary powers” that elevate him above statutory US law, treaties, and international law. According to this immigrant’s legal decisions, the “unitary executive” can violate with impunity the Foreign Intelligence Surveillance Act, which prevents spying on Americans without warrants obtained from the FISA Court. The immigrant also ruled that Bush could violate with impunity the statutory US laws against torture as well as the Geneva Conventions. In other words, the fictional “unitary powers” make the president into a Caesar.

Constitutional protections, such as habeas corpus, which prohibit government from holding people indefinitely without presenting charges and evidence to a court, and which prohibit government from denying detained people due process of law and access to an attorney, were thrown out the window by the US Department of Justice (sic), and the federal courts went along with most of it.

As did Congress, “the people’s representatives”. Congress even enacted the Military Tribunals Commissions Act of 2006, signed by the White House Brownshirt on October 17.

This act allows anyone alleged to be an “unlawful enemy combatant” to be sentenced to death on the basis of secret and hearsay evidence not presented in the kangaroo military court placed out of reach of US federal courts. The crazed nazis in Congress who supported this total destruction of Anglo-American law masqueraded as “patriots in the war against terrorism.”

The act designates anyone accused by the US, without evidence being presented, as being part of the Taliban, al-Qaeda, or “associated forces” to be an “unlawful enemy combatant,” which strips the person of the protection of law. Not even George Orwell could have conceived of such a formulation.

The Taliban consists of indigenous Afghan peoples, who, prior to the US military intervention, were fighting to unify the country. The Taliban are Islamist, and the US government fears another Islamist government, like the one in Iran that was blowback from US intervention in Iran’s internal affairs. The “freedom and democracy” Americans overthrew an elected Iranian leader and imposed a tyrant. American-Iranian relations have never recovered from the tyranny that Washington imposed on Iranians.

Washington is opposed to any government whose leaders cannot be purchased to perform as Washington’s puppets. This is why George W. Bush’s regime invaded Afghanistan, why Washington overthrew Saddam Hussein, and why Washington wants to overthrow Libya, Syria, and Iran.

America’s first Black (or half white) President inherited the Afghan war, which has lasted longer than World War II with no victory in sight. Instead of keeping with his election promises and ending the fruitless war, Obama intensified it with a “surge.”

The war is now ten years old, and the Taliban control more of the country than does the US and its NATO puppets. Frustrated by their failure, the Americans and their NATO puppets increasingly murder women, children, village elders, Afghan police, and aid workers.

A video taken by a US helicopter gunship, leaked to Wikileaks and released, shows American forces, as if they were playing video games, slaughtering civilians, including camera men for a prominent news service, as they are walking down a peaceful street. A father with small children, who stopped to help the dying victims of American soldiers’ fun and games, was also blown away, as were his children. The American voices on the video blame the children’s demise on the father for bringing kids into a “war zone.” It was no war zone, just a quiet city street with civilians walking along.

The video documents American crimes against humanity as powerfully as any evidence used against the Nazis in the aftermath of World War II at the Nuremberg Trials.

Perhaps the height of lawlessness was attained when the Obama regime announced that it had a list of American citizens who would be assassinated without due process of law.

One would think that if law any longer had any meaning in Western civilization, George W. Bush, Dick Cheney, indeed, the entire Bush/Cheney regime, as well as Tony Blair and Bush’s other co-conspirators, would be standing before the International Criminal Court.

Yet it is Gadaffi for whom the International Criminal Court has issued arrest warrants. Western powers are using the International Criminal Court, which is supposed to serve justice, for self-interested reasons that are unjust.

What is Gadaffi’s crime? His crime is that he is attempting to prevent Libya from being overthrown by a US-supported, and perhaps organized, armed uprising in Eastern Libya that is being used to evict China from its oil investments in Eastern Libya.

Libya is the first armed revolt in the so-called “Arab Spring.” Reports have made it clear that there is nothing “democratic” about the revolt.

The West managed to push a “no-fly” resolution through its puppet organization, the United Nations. The resolution was limited to neutralizing Gadaffi’s air force. However, Washington, and its French puppet, Sarkozy, quickly made an “expansive interpretation” of the UN resolution and turned it into authorization to become directly involved in the war.

Gadaffi has resisted the armed rebellion against the state of Libya, which is the normal response of a government to rebellion. The US would respond the same as would the UK and France. But by trying to prevent the overthrow of his country and his country from becoming another American puppet state, Gadaffi has been indicted. The International Criminal Court knows that it cannot indict the real perpetrators of crimes against humanity–Bush, Blair, Obama, and Sarkozy–but the court needs cases and accepts the victims that the West succeeds in demonizing.

In our post-Orwellian times, everyone who resists or even criticizes the US is a criminal. For example, Washington considers Julian Assange and Bradley Manning to be criminals, because they made information available that exposed crimes committed by the US government. Anyone who even disagrees with Washington, is considered to be a “threat,” and Obama can have such “threats” assassinated or arrested as a “terrorist suspect” or as someone “providing aid and comfort to terrorists.” American conservatives and liberals, who once supported the US Constitution, are all in favor of shredding the Constitution in the interest of being “safe from terrorists.” They even accept such intrusions as porno-scans and sexual groping in order to be “safe” on air flights.

The collapse of law is across the board. The Supreme Court decided that it is “free speech” for America to be ruled by corporations, not by law and certainly not by the people. On June 27, the US Supreme Court advanced the fascist state that the “conservative” court is creating with the ruling that Arizona cannot publicly fund election candidates in order to level the playing field currently unbalanced by corporate money. The “conservative” US Supreme Court considers public funding of candidates to be unconstitutional, but not the “free speech” funding by business interests who purchase the government in order to rule the country. The US Supreme Court has become a corporate functionary and legitimizes rule by corporations. Mussolini called this rule, imposed on Americans by the US Supreme Court, fascism.

The Supreme Court also ruled on June 27 that California violated the US Constitution by banning the sale of violent video games to kids, despite evidence that the violent games trained the young to violent behavior. It is fine with the Supreme Court for soldiers, whose lives are on the line, to be prohibited under penalty of law from drinking beer before they are 21, but the idiot Court supports inculcating kids to be murderers, as long as it is in the interest of corporate profits, in the name of “free speech.”

Amazing, isn’t it, that a court so concerned with ‘free speech” has not protected American war protesters from unconstitutional searches and arrests, or protected protesters from being attacked by police or herded into fenced-in areas distant from the object of protest.

As the second decade of the 21st century opens, those who oppose US hegemony and the evil that emanates from Washington risk being declared to be “terrorists.” If they are American citizens, they can be assassinated. If they are foreign leaders, their country can be invaded. When captured, they can be executed, like Saddam Hussein, or sent off to the ICC, like the hapless Serbs, who tried to defend their country from being dismantled by the Americans.

And the American sheeple think that they have “freedom and democracy.”

Washington relies on fear to coverup its crimes. A majority of Americans now fear and hate Muslims, peoples about whom Americans know nothing but the racist propaganda which encourages Americans to believe that Muslims are hiding under their beds in order to murder them in their sleep.

The neoconservatives, of course, are the purveyors of fear. The more fearful the sheeple, the more they seek safety in the neocon police state and the more they overlook Washington’s crimes of aggression against Muslims.

Safety uber alles. That has become the motto of a once free and independent American people, who once were admired but today are despised.

In America lawlessness is now complete. Women can have abortions, but if they have stillbirths, they are arrested for murder.

Americans are such a terrified and abused people that a 95-year old woman dying from leukemia traveling to a last reunion with family members was forced to remove her adult diaper in order to clear airport security. Only a population totally cowed would permit such abuses of human dignity.

In a June 27 interview on National Public Radio, Ban Ki-moon, Washington’s South Korean puppet installed as the Secretary General of the United Nations, was unable to answer why the UN and the US tolerate the slaughter of unarmed civilians in Bahrain, but support the International Criminal Court’s indictment of Gadaffi for defending Libya against armed rebellion. Gadaffi has killed far fewer people than the US, UK, or the Saudis in Bahrain. Indeed, NATO and the Americans have killed more Libyans than has Gadaffi. The difference is that the US has a naval base in Bahrain, but not in Libya.

There is nothing left of the American character. Only a people who have lost their soul could tolerate the evil that emanates from Washington.

Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously the editor of the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

VIDEO: A Quick Lesson In Institutionalized Government Corruption. Blago Goes Down Hard!

Can The Fed Stop Quantitative Easing?

Paul Craig Roberts
June 28, 2011

If the Fed stops QE, confidence in the US dollar would rise. Money would flow into US investments, both supporting the US stock market and helping to finance the large US budget deficit. Gold and silver prices would decline. Negative dollar expectations would be squeezed out of oil and grain prices, although drought, flood, and supply factors would continue to impact grain prices and the administration’s wars can impact oil prices.

If a halt to QE coincided with more European sovereign debt problems, the dollar might regain a lot of the ground that it has lost.

Looked at from this perspective, the Fed should halt its bond purchases, and people should bail out of their bullion investments and commodity speculations.

But there are other factors in play–the economy and continuing solvency worries about financial institutions. At a June 22 news conference, Federal Reserve chairman Ben Bernanke said: “Some of the headwinds that have been concerning us, like the weakness in the financial sector, problems in the housing sector, balance sheet and deleveraging issues, may be stronger and more persistent than we thought.”

Despite the fiscal stimulus of the large federal budget deficit and Obama’s $700 billion stimulus program, the economy’s growth and employment performance is not up to expectations. Indeed, as John Williams says, if inflation were fully measured, the economy’s growth could be negative, and if unemployment were correctly reported, the current rate would be over 22%.

An economy this weak offers no support to US-derived corporate profits or to the outlook for financial organizations. US corporations have made large investments abroad in the production of goods and services to sell to US consumers who have neither the income nor borrowing capacity to purchase. People without jobs and those with the low paid jobs provided by domestic service, such as hospital orderlies, bartenders, and waitresses, cannot afford to buy a house even at the depressed current prices. To the extent that financial institutions’ books remain filled with real estate paper, the financial crisis is not over.

Moreover, it is unlikely that the Dow Jones average can be sustained without growth in employment and GDP.

Can the Fed afford to sacrifice recovery, employment, and Obama’s reelection to save the dollar and price stability? This is the unasked and unanswered question.

Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously an editor for the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

Greek PM: Austerity is Patriotic Duty

Kurt Nimmo
June 28, 2011

Greek Prime Minister George Papandreou has told his fellow countrymen it is their patriotic duty to accept the austerity plan cooked up by the IMF and the EU. If not accepted, Greece will not get the fifth installment of an international bailout, he warned.

“I’m not asking you to listen to outside pressures, I ask that you listen to your soul and your internal patriotic conscience,” Papandreou said.

Greek opposition parties have rejected demands by EU leaders for national unity on the prospect of unemployment, a lower standard of living, and a massive giveaway of national resources.

“You cannot terrorize your MPs by referring to patriotism because if there is something we should be proud of today it’s that Greeks have risen up from their indifference and are defending, as is their duty, patriotism by the presence in the streets,” said Alexis Tsipras, leader of the leftist party SYRIZA.

Opinion polls indicate three quarters of Greeks oppose tax rises, spending cuts, globalist privatization, and the selling off of national treasures.

On Tuesday, Greek unions shut down government services, brought public transport to a standstill and grounded flights. Unions began their fourth general strike of the year at midnight.

Greece’s biggest union, the General Confederation of Greek Workers, has characterized the austerity measures as a “mafia-style rescue.”

“This proposed austerity package will only make things worse. It will mean we are pushed deeper into recession and will never pay back our debts,” Zoe Lanara, the union’s international relations secretary, told The Independent.

As former Wall Street economist Michael Hudson notes, the so-called bailout will not help the Greek people, it will enrich the banks at the expense of the people.

“The Greek economy will not end up with the proceeds of any ECB ’bailout.’ The banks will get the money. They would like to turn around and lend it out afresh to the buyers of the land, monopolies and other properties that Greece is being told to privatize,” he writes. “Is this not like military tribute? … The bankers are trying to get a windfall by using the debt hammer to achieve what warfare did in times past.”

Papandreou and the political elite expect the Greek people to acquiesce to what amount to a military attack on the country by the financial elite. Instead, unions and thousands of protesters will close down the country and continue to resist eurozone enslavement and the theft of their heritage by international finance.

Normalizing the police state (and how it ends with taser-firing drones)

True / Slant
by Allison Kilkenny
Msy 7, 2010

Bob Herbert recently wrote about the overzealous enforcement of “peace officers” assigned to New York City schools. The officers are accused of detaining, searching, handcuffing, and arresting students for silly things like drawing on desks, or handling — not using, but handling — cell phones in school.

In one case, a safety officer kicked in the door of a stall in the boys’ bathroom, wounding a student’s head. The officer’s response to questioning about the matter was: “That’s life. It will stop bleeding.”

Another student, this time a 5-year-old, was shipped off to a hospital psychiatric ward for throwing a tantrum.

These absurd reactions to normal childhood behavior is all part of “Zero Tolerance.” Six-year-old Zachary Christie faced disciplinary action after bringing a Cub Scout utensil that can serve as a knife, fork, and spoon to school. Apparently, the state of Delaware is terrified of children shanking each other, and after all, it’s the era of Zero Tolerance.

Treating children as suspects is the new normal in American culture. There is something innately wrong with children. If they’re too chatty, they need to be medicated. If they’re too angry, they need to be suppressed by a “peace officer.” They are not to be trusted, and must be monitored at all times.

A school in Pennsylvania is accused of covertly activating webcams in school-issued laptops to spy on students. The accusations have generated a lot of outrage, but this is the logical conclusion of the country’s general movement toward a police state. If the NSA can wiretap citizens’ phones, the FBI can infiltrate protest groups, and the police can generally dominate and suppress any kind of protest, why shouldn’t schools be able to monitor student activity?

Americans have already accepted forms of police brutality (macing, sound cannons, tasering) as the inevitable punishments for exercising their First Amendment rights. They have already submitted to the bureaucratic requirements of permits (permits to gather, permits to use a bullhorn,) and the ridiculous spectacle of caged protests where activists are literally penned behind gates and cannot move from their designated locations as they “exercise” their “freedom of speech.”

When the protest spills past the acceptable parameters of activism, the police state shocks the citizenry back into submission. They taser, and mace, and deafen people until they stop fighting.

There hasn’t been too much fuss about this kind of oppression. Some guy got tasered when he asked John Kerry a question, but his fellow citizens mostly laughed about that. Jay Leno had a lot of fun with the “Don’t taze me, bro” stuff. Good times had by all.

Students like Ryan O’Neil got tasered at UCLA:

Kathryn Winkfein, a 72-year-old great-grandmother, was tasered (twice) by an officer for getting shouty after she was pulled over for a traffic offense. Youtube commenters — ever the empathetic bunch — said Winkfein was “asking to be tasered.” Another said Winkfein clearly has to take some “responsibility” for being tasered.

Worse than the police state itself are the people who can’t rush to defend the oppressors quickly enough. That student was asking for it. Grandma shoulda kept her mouth shut.

Digby calls this the “normalizing of torture.” Not only are people unsurprised by tasering these days, but they watch it for entertainment on Youtube. This normalizing goes beyond tasering, however. It’s now normal for the state to monitor citizens, and for any kind of mass protest to be immediately restricted by the government.

The terrifying conclusion to this normalization of the police state is featured in the latest issue of Harper’s. (h/t Digby)

Taser’s distributor has announced plans for a flying drone that fires stun darts at criminal suspects or rioters.

Oh, goody. It’s like if a thousand tasers rained down from the heavens. Other nifty inventions include

a “Shockwave Area-Denial System,” which blankets the area in question with electrified darts, and a wireless Taser projectile with a 100-meter range, helpful for picking off “ringleaders” in unruly crowds.

It all sounds like science fiction. Sane individuals read stuff about the taser-firing drones and think, “That’ll never happen!” But consider that thirty years ago, people would have laughed at the idea that police would one day be permitted to electrocute citizens for getting mouthy.

And considering what else the Pentagon has worked on in the past, I wouldn’t put anything past these people:

Pentagon interest in “advanced riot-control agents” has long been an open secret, but just how close we are to seeing these agents in action was revealed in 2002, when the Sunshine Project, an arms-control group based in Austin, Texas, posted on the Internet a trove of Pentagon documents uncovered through the Freedom of Information Act. Among these was a fifty-page study titled “The Advantages and Limitations of Calmatives for Use as a Non-Lethal Technique,” conducted by Penn State’s Applied Research Laboratory, home of the JNLWD-sponsored Institute for Non-Lethal Defense Technologies.

Penn State’s College of Medicine researchers agreed, contrary to accepted principles of medical ethics, that “the development and use of non-lethal calmative techniques is both achievable and desirable,” and identified a large number of promising drug candidates, including benzodiazepines like Valium, serotonin-reuptake inhibitors like Prozac, and opiate derivatives like morphine, fentanyl, and carfentanyl, the last commonly used by veterinarians to sedate large animals. The only problems they saw were in developing effective delivery vehicles and regulating dosages, but these problems could be solved readily, they recommended, through strategic partnerships with the pharmaceutical industry.


Little more was heard about the Pentagon’s “advanced riot-control agent” program until July 2008, when the Army announced that production was scheduled for its XM1063 “non-lethal personal suppression projectile,” an artillery shell that bursts in midair over its target, scattering 152 canisters over a 100,000-square-foot area, each dispersing a chemical agent as it parachutes down. There are many indications that a calmative, such as fentanyl, is the intended payload—a literal opiate of the masses.

Here we have the completion of the perfect police state. Citizens are monitored from cradle to grave. Any signs of anger or rebellion are swiftly squelched with medication or “peace officers.” The schools step in when the state cannot act to monitor and regulate every movement of students’ lives under the banner of “Zero Tolerance.”

When the medicated and monitored children grow into dysfunctional adults, some of who eventually realize their shitty circumstances (complete with shitty healthcare, outsourced jobs, limited resources, poisoned environment, enormous wealth disparity, etc.) and they think about rebelling, they are immediately lassoed with an anchor of bureaucracy. Should you want to protest, please fill out form AYT0754 five months prior to said protest, and pay this fee, and remain in this pen, and please don’t make too much noise…

Those few brave souls that break through this wall and do manage to protest are put down at Stage 2 of the Police State with weaponry: mace, sound cannons, tasers, and whatever else the Pentagon desires to test on them. The state will only be too happy to use opiate weaponry next. What a nice, neat way to stop activism! Spray a little Happy in the herd’s face and watch them wander off, smiling.

Sinclair Lewis said, “When fascism comes to America it will be wrapped in the flag and carrying a cross.” I think people expect the end of America’s free society to look like a violent apocalyptic scene in some Hollywood film, but that’s not how it will happen. Government officials figured out that suppressing riots with bullets is bad PR. They have learned to do it quietly, and in a way where they can claim they’re being humane about the whole thing. Look! We don’t shoot people anymore! We taser them!

The end product is the same, though. Rebellion is suppressed. Activism is thwarted.

It’s no coincidence that in the era when the US government passed the most progressive, civil rights-oriented legislation, the activist culture was thriving, and the police had not yet been issued their “toys” with which they could neatly euthanize dissent.

The activist-police clashes in the sixties were bloody and violent. They were loud and terrible, and they made the news. Black protesters were attacked by police dogs. The moment the populace saw those images, everything changed. “The black community was instantaneously consolidated behind King,” said David Vann, who would later become mayor of Birmingham.

Now, imagine if dogs hadn’t been used, but the police instead utilized “non-lethal personal suppression projectiles.” In this world, the civil rights protesters in the sixties didn’t scream and fight. They just got kind of loopy, smiled, and walked home. Yes, technically the police prevented injuries, but the larger damage is much more severe. The police prevented political change. That may be a good thing for the regime of the moment, but it’s a bad thing for justice and society at large.

Tuesday, June 28, 2011

Kissinger’s Marching Orders: Buy Out, Dismember, Destroy America

By George Butler & Charlotte Littlefield
June 28, 2011

Henry Kissinger is taken as a credible and influential presidential adviser, despite the fact that there is an abundance of legal evidence that he is a war criminal. He is also being pursued by Spanish and French authorities. When viewed from purely legal stand point, author Christopher Hitchens, in his book “The Trial of Henry Kissinger”, points out that Kissinger was responsible for acts of genocide, assassination, and unlawfully interfering with government operations both in the United States and in foreign countries.

Buy Out

His criminal resume spans the globe and includes the mass murder of civilians in East Timor, Pakistan, Greece, Cyprus, Chile, Argentina, Cambodia, Laos, and Vietnam. In places such as Chile and Argentina, Kissinger supervised the assassination of democratically-elected heads of state and the establishment of brutally repressive and murderous military dictatorships. Some defend Kissinger, arguing he did what had to be done, practicing a brutal but necessary variant of real politics. While Kissinger’s actions personally benefited him and his patrons, they in no way helped the United States. Yet, somehow he remains a credible adviser?

Henry Kissinger does not represent the citizenry of the United States of America but the Bilderberg Group. He recently attended the Bilderberg Steering Committee from June 9-12, 2011 in St. Moritz, Switzerland. This steering committee, it is fair to say, likely includes North Atlantic Treaty Organization (NATO), the king of Norway, all the other monarchs of Europe and other kingdoms of significance, sovereign wealth funds, international corporatists, world financiers and bankers, their families and their associates. This includes members of the Trilateral Commission, the Council on Foreign Relations, and the Royal Institute of International Affairs.

Naturally, infrequent attendees, or pre-selected people of interest, are heavily indoctrinated, even pressured, into pursuing and supporting Public Private Partnerships (PPP), which effectively transfer public assets and resources into private hands. The PPPs are promoted on the premise of creating more efficient organizations that will provide goods at lower costs and provide more efficient services. In some cases, the outcomes initially do effectively create good results, but the ownership transfer from public to private has significant legal consequences.

Despite his potential apprehension and conviction as a war criminal, Kissinger was honored June 15, 2011 at The Asia Society annual awards dinner at the Ritz-Carlton in Washington D.C. Kissinger appeared on stage in front of an Asia Society audience with Orville Schell, a preeminent China scholar, and Arthur Ross, director of the Asia Society’s Center on the U.S.

Kissinger made these comments during the dinner: that the United States and China must “adjust their traditional thinking” and “move toward a sense of community” in order to avoid conflict. “We are now in an international situation for which there is no precedent in history.” … “On the one hand, there is turmoil in many parts of the world. At the same time, there are a series of problems that can only be dealt with on a global basis. … And that makes it imperative for the two strongest nations that are existing in the world today to move in a cooperative manner.”

In this video, “Henry Kissinger: Toward a China U.S. Community” ( ) , he makes a case for facilitating the investment, acquisition and buy out with the Chinese-Communists of the United States so they will own all of America, via Public Private Partnerships.


The dismemberment of America is proceeding. “Divide and conquer” has been the internationalist and monarchical battle cry. Victory is assimilation, not division or separatism on our primary principles of liberty, justice and freedom. America heritage is to be the great “melting pot” not the great “salad bowl”. We no longer have Americans, but African-Americans, Hispanic-Americans, Anglo-Americans, Asian-Americans, Native Americans and so on and so forth.

America is being dismembered. United we stand with our Federal Constitution, Bill of Rights and our righteous Declaration of Independence which proclaims with the greatest of authority “all men are created equal and endowed by their creator with inalienable rights”. In this equation is the sacred requirement of state, individual and minority rights. Both dictatorial theocracy and monarchy blocked under our collection of founding documents and contracts. To be American means it is self evident we are created equal and proclaim our inalienable rights provided by natural law of our creator.

Tragically, our taxpayer-funded Public Broadcast Systems, along with Aspen Institute vultures, are looking upon us from their perches. Presumably, they have bestowed a great gift upon America: the concept of multiculturalism. What is needed is an America enlivened and united to defend the principles of our founding document, not separatist division by ethnicity, religion or creed. United we stand, divided we fall.


Destroy America’s founding principles and those who still profess those principles and presumably the country will be destroyed. Stalin and Antonio Gramsci differed in their strategy in spreading Communism, Gramsci believed that the first priority was to culturally defeat the west’s institutions, and than the nations would fall to the Communists. Sadly, that is what the old monarchies and international bankers have done in destroying our institutions with money based systems. These money based systems have no heart no soul but consist of corporate structures that seemingly garner the same rights of a flesh a blood natural person. Corporate law has to be seriously reconsidered, major revisions applied and profound principle changed. The Uniformed Commercial Code (UCC), contrary to the power elite, is not what rules the United States of America, nor are any of our principles of government to be taken from it. However, the erosion and conversion is obvious and nearly complete.

If the Constitution is a living breathing document, then that implies it can also die. Contracts do not live or die. They are amended by agreement of all parties to the contract; hence why the concept of the Constitution being a living breathing document is illogical and dangerous. What is required today is an unburdening of ourselves from unconstitutional legislation, executive orders, and the subversive influence of Uniformed Commercial Code.

Further, we must not only recognize but reverse the very real transfer of power that has occurred from the legislative branch to the judicial, but more dangerously, the executive branch as with the power to wage war or the supposed nullification of the great Posse Comitatus Act of June 18, 1878. We must change the laws concerning what rights international and local corporations have in our land and nullify the cumbersome liberty stealing UCC (and other Uniform Codes) as required. Last but not least, we must no longer tolerate the over-empowered Federalist, backed by big money, dictating to us, the grassroots (and State political parties) who we will or will not endorse for either party’s Presidential candidate via the Electoral College.


1. Unburden the U.S. Constitution by repealing damaging legislation.
2. Uphold protection of state, individual and minority groups’ rights.
3. Step back from tyrannical federalism and collectivism.
4. Demand an audit of and an end to the privately-owned Federal Reserve.
5. Uphold man’s freedom from theocracy and monarchy.
6. Demand an end to public-private partnerships.
7. Support nullification movement.
8. End the top-down dictatorial nature of the two-party system.
9. People use the Electoral College, not the federalist top-down approach.

George Butler and Charlotte Littlefield are the talk radio co-hosts of The Secret Truth, which airs every Saturday evening, from 7:00 – 9:00 p.m. CST on GCN. Or listen On Demand anytime. Butler is also a playwright, having written the musical drama Give Them A Chance, which debuted in Austin, Texas in June 2007.

Sunday, June 26, 2011

The State Of The Collapsing Economy

The Economic Collapse
June 25, 2011

The U.S. economy is like a rubber band that is being pulled in several different directions at the same time. Everyone knows that at some point it is going to snap, but nobody is quite sure exactly when it is going to happen. Right now, the state of the economy is not good, and it is going to get a whole lot worse. Sadly, most Americans don’t even understand the economic fundamentals well enough to be able to ask the right questions to our politicians. Today, the United States consumes far more wealth than it produces every single month. That means we are continually getting poorer. U.S. debt is also rising at a far greater rate than U.S. GDP is. On an individual level, if your assets were going down every single month and if you were going into more debt every single single month it would be easy to understand what was happening. However, most Americans can’t really seem to grasp what is taking place on a national level. Our politicians and the mainstream media just keep telling them that everything is going to be okay and they just keep believing it.

These days our leaders are resorting to increasingly desperate measures in order to help revive the economy. On Thursday, Barack Obama decided to release 30 million barrels of oil from the U.S. strategic oil reserve.

Yes, that will drive down oil prices for a few days, but what is going to happen someday if we actually need to use that strategic oil reserve?

But in many ways you can’t blame Obama for trying. He desperately wants to get reelected and he knows that his campaign will be highly dependent on the state of the economy. Look for Obama to pull out all the stops as we get closer to the fall of 2012.

Sadly, the truth is that it almost does not matter what the Democrats or the Republicans do at this point. The long-term trends are so powerful now that it would take a miracle to reverse them. We are facing an “economic tsunami” that is just going to keep on destroying middle class America.

If you went to a store today, and there were two somewhat similar products sitting on the shelf and one cost ten times more than the other one, which one would you buy?

Well, that is the situation facing American workers today. They have been pushed into one giant globalized labor pool, but big corporations are allowed to pay workers on the other side of the globe slave labor wages. It costs ten times more (at least) to hire a blue collar American worker than it does to hire a blue collar worker in most areas of Asia.

As a result of the globalization of labor, we have seen a mass exodus of jobs out of the United States, and wages for many of the jobs that remain have been significantly depressed.

There simply are not nearly enough jobs for all Americans at this point.

Recent college grads are finding this out. A new study that was conducted by Rutgers University discovered that over 30 percent of all those that graduated from college between 2006 and 2010 were not able to get a job within six months of graduation.

But unemployment is only part of the story. There are millions upon millions of Americans that are “underemployed” today.

There are hordes of highly educated, hard working Americans that are working temporary or part-time jobs at close to minimum wage because that is all they can get.

With good jobs being so scarce, American families are finding it more difficult than ever to make ends meet.

One recent survey found that 9 out of 10 U.S. workers do not expect their wages to keep up with the rising cost of basics such as food and gasoline over the next year.

I talked about the rising cost of food in my recent article entitled “Why Are Food Prices Rising So Fast?“ Today, one out of every seven Americans is already on food stamps, and if the cost of living keeps rising this quickly we are going to see millions more of our fellow citizens clamoring for government assistance.

The decline of the American consumer is having other effects as well.

For example, pre-orders for Christmas toys from China are way down.

It looks like this holiday season is not going to be as “merry” as usual.

It would be nice if we could say that the economy is improving, but that simply is not the case.

American households are in a far different place than they were prior to the recent recession.

For example, did you know that home values in the United States have plummeted $6.6 trillion since the peak back in 2007?

U.S. homeowners have taken the brunt of that decline. According to the Federal Reserve, average home equity has fallen from 61 percent in 2001 to 38 percent in the first quarter of 2011.

That is a colossal shift.

If U.S. homeowners only own 38 percent of their homes, then who owns the rest?

The banks do.

Doesn’t that just make you feel all warm and fuzzy inside?

Health care is another area where American families are getting squeezed.

Today, the United States spends more on health care per person than any other country in the world.

Sadly, we are also one of the sickest populations on the planet.

What is up with that?

Once upon a time the United States had a middle class that was the envy of the entire globe.

Now it is being ripped to shreds at every turn.

Today, approximately half of all Americans say that they could not come up with $2,000 within 30 days without selling away some possessions.

The vast majority of us are basically flat broke and surviving from month to month.

Meanwhile, our vaunted financial system just may be on the verge of another meltdown.

There has been all sorts of volatility in the marketplace recently and there are all kinds of signs that Wall Street is about to go into panic mode.

For example, Moody’s recently warned that it may downgrade the debt ratingsof Bank of America, Citigroup and Wells Fargo.

Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley are all either already laying workers off or are rumored to be considering it.

Frank Davis, director of sales and trading with LEK Securities, says that there isa lot of pessimism on Wall Street right now….

“There’s a lot of emotion in this market at the moment, and the conversations among traders are nearly all leaning toward the bear side”

As the financial system spins out of control, the Federal Reserve is increasing the number of workers that it is “embedding” at the big Wall Street banks.

I guess the Fed wants to keep a closer eye on things as they come crashing down.

Sadly, so much of this would be much easier to fix if our nation was not drowning in debt.

Since Barack Obama was elected, the national debt has increased by nearly 4 trillion dollars. If you and I went out today and started repaying that 4 trillion dollars at a rate of one dollar per second, it would take over 120,000 yearsto do it.

Most Americans have a hard time comprehending these kinds of numbers. Janet Tavakoli tried to put our debt situation into perspective in her latest column….

David Walker, the former U.S. comptroller general, says it’s even worse than that. When he takes into account future obligations for Medicare, Social Security, Federal debt, Military retirement, Civil servant retirement, and more, we owe $546,663 per household. That doesn’t even include your local debt — it may not be as bad as if you lived in Illinois, but it’s substantial nonetheless — and personal debt including mortgages and consumer debt that average more than $120,000 per household.

But you don’t have to toss wild numbers around to get an idea of how much trouble we are in.

As I have written about recently, there is increasing evidence all around us that the collapse of society is accelerating. We are seeing disturbing reports of civil unrest pop up all over the U.S. at an alarming rate.

According to a CBS affiliate in Chicago, earlier this week approximately 50 young people conducted a shocking mob robbery of a drug store located on the Magnificent Mile in Chicago….

Some 50 young people barged into a Walgreens at Michigan and Chicago on the Magnificent Mile on Tuesday afternoon. They took bottled drinks and sandwiches off the shelves, then ran off, CBS 2′s Suzanne Le Mignot reports.

When large groups of young people get together and agree to commit crimes that should be a huge red flag for all of us.

We are a nation that is deeply, deeply divided. Hatred is growing and the love of most Americans is growing cold.

As I have written about previously on “The American Dream“, the American people are actually encouraged to hate one another these days….

The truth is that the “establishment” is constantly trying to divide us and get us fighting with one another. They pit the Republicans against the Democrats (even as though control both sides). They pit one race against another. They pit one gender against another. We are told that the rich are against the poor, the north is against the south, urban is against rural and that there are even “generational battles” going on. Frustration and hate are rapidly growing in the United States today, and a lot of that frustration and hate is unfortunately aimed at the targets that the mainstream media has programmed all of us to hate. Meanwhile, those at the top of the pyramid who are controlling the whole game love it when we are divided because we can never become united and challenge their control.

We need to come together as a nation. If we don’t, we are going to face an unprecedented nightmare when the economy collapses.

So what do you think about the state of the economy? Please feel free to leave a comment with your opinion below….