Friday, March 30, 2012

Pot Calls Kettle Black! Dallas Fed Claims Banks Too Big

The Daily Bell
Friday, March 30, 2012

From Big State a Call for Small Banks … An annual report from a regional Federal Reserve bank is typically a collection of banalities and clichés with some pictures of local worthies who serve on the board. And so it is with this year’s annual report from the Federal Reserve Bank of Dallas, whose pages are graced by the smiling, stolid portraits of board members who run local companies like Whataburger Restaurants. But the text is something else entirely. It’s a radical indictment of the nation’s financial system. The lead essay, which is endorsed by the president of the Dallas Fed, contends that despite the great crisis of 2008, a cartel of megabanks is still hindering the economic recovery and the institutions remain too big to fail. The country’s biggest banks look much as they did before the 2008 financial crisis — only bigger. They have “increased oligopoly power” and “remain difficult to control because they have the lawyers and the money to resist the pressures of federal regulation,” Harvey Rosenblum, the head of the Dallas Fed’s research department, wrote in the essay. – ProPublica

Dominant Social Theme:
We, the Fed, the most powerful monopoly on the planet, are concerned about the “increased oligopoly power” of our distribution system.

Free-Market Analysis:
The excerpt above is taken from a column that “monitors” financial markets in order to hold “companies, executives and government officials accountable for their actions.”

OK. It’s a well-written column, but it misses a main point, in our humble view. The Federal Reserve is a mercantilist(quasi public) facility apparently controlled by dynastic families out of the City of London and elsewhere. For an entity within this larger monstrosity to call parts of the US banking system “too big to fail,” is rich, to put it mildly.

This is actually part of a larger elite dominant social theme, that central banks are a public good and that the quasi-private banking system beneath them is where the problems reside.

This simply isn’t true, in our humble opinion. As we’ve often pointed out, the current Western banking system is nothing but a distribution channel for the elite’s monopoly fiat money. That’s why the world is so overbanked.

If the Dallas Fed honchos had written the following, it would be closer to the truth: “Go to any large city on the planet and observe that the largest skyscrapers are filled with headquarters of obscure banks you’ve never heard of. Travel to any country and observe that banking is a primary occupation …

“Banking is the world’s biggest bubble. We distribute our printed and digital money-from-nothing through large commercial banks and thus they are never allowed to go out of business. They are part of us and we would no more remove them from the body politic than we would cease to purvey our endless tidal wave of currency.”

In other words, it’s kind of hypocritical for the Dallas Fed to complain about the size of American central banks. To use another metaphor, it’s kind of like an obese person pointing to his stomach and claiming that it ought to shrink. Sure, a big stomach is a problem, but it’s not the WHOLE problem by any means. Here’s some more from the article:

Having seen the biggest banks make risky bets, crush the economy and get rewarded leaves “a residue of distrust for the government, the banking system, the Fed and capitalism itself,” Mr. Rosenblum wrote. It’s one thing for the Occupy movement to point out how bailing out the biggest banks — with little cost to their executives or shareholders and creditors — has demolished credibility. It’s quite another for top officials in the Federal Reserve system to put it in an annual report.

“We know under the current structure that the government would be called on once again,” the president of the Dallas Fed, Richard W. Fisher, told me. He has been giving a series of speeches about the continuing problem of “too big to fail.” …

Unfortunately for our banking regulation system, critics in the regional Federal Reserve banks haven’t had much influence on regulatory policy … Mr. Fisher, the Dallas Fed president, has been one of the fiercest inflation hawks. He has dissented against the Fed’s efforts to buy longer-term assets, known as quantitative easing, which was an effort to stimulate the economy. (He has been less worried about inflation more recently, arguing that unemployment is the top problem for the economy.)

“Sound money and sound structure go hand in glove,” Mr. Fisher said … The top bank regulators at the Fed, meanwhile, have embraced unorthodox monetary policies, but have also had scant courage and originality in challenging the current structure of the country’s financial system. Not so with the Dallas Fed. Its report champions “the ultimate solution for TBTF — breaking up the nation’s biggest banks into smaller units.”

The elite’s central banking promotion is an endless one. We are constantly transported to the Church of Paper Money where a group of good, gray men administer the creation of trillions of dollars at the push of a button.

After creating a random trillion here and there, these same individuals saunter out to the platform (or stage) and address the waiting “financial reporters.” They explain they are very worried about “inflation,” never hinting that they’d just primed their digital printing presses with another trillion that very morning.

In truth, central banks are inflation factories. The inflation is aimed at the money supply and price inflation is the inevitable result when the money finally begins to circulate. The confusion between inflation and price inflation is purposeful as well. It is another sub dominant social theme: “inflation” has to do with prices. It does not, of course. It has to do with the amount of money in circulation.

There were very few central banks 100 years ago. Today there are 150, and most of them are quasi-public entities, controlled behind the scenes by the top dynastic families, it seems, that want to create world government and use the proceeds of monopoly money to do so.

The trouble with the elite’s control of central banking in the modern era is that what we call the Internet Reformationhas thoroughly exposed it. As we have pointed out in many articles, the Internet is like the Gutenberg Press before it. It is a magnifying glass, exposing questionable realities that went unnoticed in the 20th century when the elites controlled virtually all forms of formal communication.

Today, the average man – struggling to keep his home, family and job – is well aware that there are a few people who regularly distribute trillions to their cronies while his region withers from the ruin that results from an overabundance of ever-more debased money.

It is this MORAL revelation – a revelation of immorality actually – that is likely going to do in the central banking system. The top central bankers like Fisher are deliberately trying to take a moral position about the modern money system but it may already be too late.

The idea is to whip up resentment against the putatively private sector – to pretend that central banking itself is above the fray and that the problems of the financial world have to do with the structure and immorality of Wall Street and “too-big-to-fail” banks.

For this reason, we have predicted that eventually there will be neo-Pecora hearings in Washington, DC that will then set the tone for the rest of the Western world as well. The previous Pecora hearings back in the 1930s blamed the Depression on Wall Street greed and corruption and set up the SEC, NASD etc.

The new Pecora hearings, which are even now being planned, will deal a full death blow to what is left of the private capital-raising mechanism of the US. There is no question that Wall Street is thoroughly contemptible and corrupted, but after these new hearings take place, there will be nothing left of market capitalism in the US.

The country will have fulfilled the mandate of possible Rothschild agent Alexander Hamilton who wanted to ensure that the US system mimicked the dirigiste European system where people born into one class could never migrate to another.

But there is the Internet … Finally, there is the Internet. These neo-Pecora hearings – if and when they come – will not take place in a vacuum. The powers that be can do all they want to pretend that the problems of Western society come from “big banks” but the evident and obvious truth is that the problems faced by the Western world come from the money system itself.

The world is drowning in money and banks. This plethora of monetary agents has been propounded by the elites themselves to create recessions, depressions and eventually wars – the building blocks of the coming world government. Out of chaos … order.

It will not do anymore for the elites to pretend that central banks are the disinterested solution to the “larger” problems of private-sector cronyism and corruption. In fact, fiat-money monopoly printing IS the problem. The biggest of the too-big-to-fail banks are the central banks themselves.

Conclusion: If the honchos of the Dallas Fed want to break up banks, they should start with their own.

VIDEO: Brave New Bank? BRICS Moving Past The Collapsing Petrodollar

March 30, 2012

The BRICS summit has wrapped up in India. Creating an alternative global lender and stepping away from the dollar as a reserve currency were among their main objectives. RT also spoke to Dr Sreeram Chaulia, who is a Vice Dean at the Jindal School of International Affairs. He believes institutions like the IMF and the World Bank have outlived their uselfulness.

VIDEO: Milk Man Faces Multiple Felony Charges for Food Crimes!

Hyperinflationary Depression – No Way of Avoiding Financial Armageddon
by Mac Slavo
December 15th, 2009

If you’ve never heard of or read a report from John Williams, then today is your (un)lucky day. Mr. Williams’, founder of Shadow Stats, is the economic analyst that has brought us the real, unadultered statistics for unemployment (22%) and real GDP (-5.5%) and Inflation (6%).

According to Mr. Williams’ most recent report on the economy, things are not as good as they may seem. In fact, they’re a whole lot worse than what most people can even imagine.

The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.

It could not get any more serious than this. If Mr. Williams’ is correct, and his stats and analysis have proven to be right on target thus far, then we are in for what Gerald Celente has said will be like nothing we’ve ever seen in our lifetime.

Looking at each of Mr. William’s points from a worst case scenario perspective, here are some things one can expect.

Collapse of Purchasing Power

Imagine stock markets initially rising to new highs. While many in the public will truly believe we are in a new boom time, the reality will be that prices on everyday goods will be increasing at a rapid rate. Hyperinflation will not be recognized right away, but eventually the public will catch on. Howard Katz has written that we can expect price increases of 70% within a year or two. Imagine gas at $7 – $8 a gallon, a can of tuna for $3 and your favorite flavored latte for $10. This will be the opening act and primary indicator that the system is getting to a breaking point.

Collapse in the normal stream of U.S. commercial and economic activity

As the purchasing power of the dollar diminishes, foreign creditors and suppliers will become concerned. Even short-term credit extensions for essential goods like food and oil will collapse. If you’ve read about what happened in Iceland in 2008, you’ll have a pretty good idea, except the population needing essential goods is about 1000 times the size of Iceland’s (pop. 300,000). When Iceland’s currency collapsed, the government was unable to purvey basic food goods from international sources because their currency was no longer trusted. Expect to see store inventories slowly (or perhaps quickly) lower, from basic foods to apparel. If the dollar were to go Zimbabwe, then it would be nearly impossible for merchants and suppliers to accurately price goods, leading to daily, perhaps hourly price changes. The effects of this type of currency collapse will infect every aspect of the economy, leading to mass layoffs and a sudden stop in transportation via trucks, rail and dryships. Trade goods will cease to move across the nation.

Collapse in the U.S. financial system

If you haven’t read James Rawles’ book Patriots, do so. The opening two chapters deal with exactly the scenario forecasted by John Williams. As mentioned, we will see stock prices and stock markets probably go through the roof initially, in nominal dollar terms. But, once it is realized that the dollar has been destroyed, along with all US denominated paper assets, we may see a shut-down of US Stock markets. While there may certainly be other signals, a freeze in the trading of stocks as a result of hyperinflationary pressure on the US Dollar should be a warning alarm to all of those with a bug-out location. Complete system collapse will not be far behind- — and we could literally be talking days, not weeks or months.

Realignment of the U.S. political environment

It may be hard to believe, but it is certainly not outside the realm of possibility. The political system as we know it, like voting for representatives, may deteriorate quickly, meaning that martial law may need to be implemented. It is no secret that President Obama will have 1 million US military soldiers on the ready by the end of January 2010 to deal with just such a scenario. Local law enforcement and emergency services will break down, as responders will opt to protect their own families. This will force the hand of the Federal Government, as there will be no police to deal with looting, violent crime, and civil unrest resulting from a collapse in trade and essential supplies.

If Mr. Williams’ forecast plays out as described, then preparation will be a key to survival. As Mr. Williams points out, and many observers feel deep down, the problems that have been pushed into the future have now come home to roost:

Indeed, pushing the big problems into the future appears to have been the working strategy for both the Fed and recent Administrations. Yet, the U.S. dollar and the budget deficit do matter, and the future is at hand. The day of ultimate financial reckoning has arrived, and it is playing out.

How much time do we have? We have heard Dr. Marc Faber, who suggests that it could happen quickly, by 2012, or even later, around 2018. Mr. Williams, has recently adjusted his timelines based on the data he is interpreting:

The intensifying economic and solvency crises, and the responses to both by the U.S. government and the Federal Reserve in the last two years, have exacerbated the government’s solvency issues and moved forward my timing estimation for the hyperinflation to the next five years, from the 2010 to 2018 timing range estimated in the prior report. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, gross mismanagement, and a deliberate and ongoing effort to debase the U.S. currency. Accordingly, risks are particularly high of the hyperinflation crisis breaking within the next year.

This may not necessarily mean that by the end of 2010 we will be living like Road Warriors, but the system is under so much pressure, that we may begin to see the initial effects very soon, as discussed above.

For those who hope for change, we’re sorry to inform you that it isn’t coming, because it is too late:

The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money. With the creation of massive amounts of new fiat dollars (not backed by gold or silver) will come the eventual destruction of the value of the U.S. dollar and related dollar-denominated paper assets.

Folks, if Mr. Williams and others are right about this, then I am afraid that we are going to experience something in the United States that will be written about for centuries in the history books (if the whole planet doesn’t get wiped out by a nuke war before it’s all said and done).

What can be done now? The answer is nothing. It is just time.

Zero Hedge opines:

Take away the fiat illusion, and the real value collapses to those concepts of tangible value that will remain in a post bubble implosion scenario: whether these be spam, gold, or lead.

We’ll be publishing a basic primer on prepping your SHTF Plan for Hyperinflationary collapse, but for now, we urge our readers to consider Mr. Williams’ analysis and take some advice from Zero Hedge. Consider reserve foods (plug: and precious metals (gold, 1 oz silver coins, 90% silver quarters/dimes available at for fair market prices). Of course there are other preps that one can make, including the acquisition of self defense weapons and finding a longer-term bug out locations outside of major cities. You do not want to be in suburbia if the above scenarios unfold.

When it hits the fan, don’t say we didn’t warn you.

Shadow Stats Founder On Hyperinflation: Disruptions to Food Supplies, Normal Flow of Commerce
by Mac Slavo
May 5th, 2010

Many of our readers are familiar with John Williams of Shadow Stats. We often refer to his economic analysis to get the real story about GDP growth, unemployment and most matters of government accounting.

In previous articles, we’ve discussed the threat of Hyperinflationary Depression – No Way of Avoiding Financial Armageddon and What is Money When the System Collapses?

Mr. Williams was recently interviewed by The Gold Report and the discussion revolved around the real possibility of hyperinflationary collapse of the US Dollar and an economists view of what the effects of such a collapse would be. If you haven’t read our previous articles, we’d recommend reading those now as they may provide some ideas, tips and strategies to help you whether the storm in the event that it does happen as Mr. Williams suggests it may.

The following excerpts are just snippets from an excellent interview that is worth your while to read in its entirety.

There’s strong evidence that we’re going to see an intensified downturn ahead, but it won’t become a great depression until a hyper-inflation kicks in. That is because hyper-inflation will be very disruptive to the normal flow of commerce and will take you to really low levels of activity that we haven’t seen probably in the history of the Republic.

Again, if you start to see a great depreciation of the U.S. currency or a tremendous increase in lack of confidence in the soundness of the government’s fiscal condition, there is a problem. You mentioned Greece, for example. The sovereign solvency issues there are minuscule compared to what we have with the United States, which is the elephant in the bathtub. The markets know it’s there. The central bankers know it’s there. Again, with the downturn in the economy, all the issues are going to be brought to a head. As they come to a head, there will be that effort to dump the dollar. I would expect that, indeed, it will be decoupled from its reserve status, although it could follow after the fact as opposed to before the fact.

Beyond income issues, the problem with the hyper-inflation is that very quickly the use of cash will cease. Let me contrast our circumstance here with a very popularly followed hyper-inflation case that’s now run its course in Zimbabwe. There you had probably the worst hyper-inflation that anyone’s ever seen. After devaluation upon devaluation, they successively lopped the zeros off the bills. If you took a $2 bill that they first issued back in the ’80s and then tried to come up with the equivalent of a $2 bill in the last form of the currency, it would be very difficult to do because it was so worthless. If you put a pile of those together to equal the original $2 bill, it would actually stretch from the earth to the Andromeda Galaxy. We’re talking light years. There are not enough trees on earth to print them. Yet the Zimbabwe economy survived and functioned. They had a lot of problems, but they operated. The reason they functioned was because they had a back-up system, which was a black market in U.S. dollars. People switched out of the Zimbabwe dollar to U.S. dollars. They could live with that. In the U.S., we don’t have a back-up system.

In terms of preserving the purchasing power of your assets, the best thing I can think of is physical gold. That’s worked over the millennia. I’m not per se a gold bug. It just happens to be a circumstance in which it’s the cleanest asset around for that. You don’t need to put all your assets into gold, but hold some. Hold some silver. I’d look to get some assets out of the U.S. dollar and look to get some assets out of the U.S. When I say outside of the U.S. dollar, again, I look at the Canadian dollar, Australian dollar, Swiss franc in particular. I think they will tend to do particularly well, whereas the U.S. dollar is going to become effectively worthless.

As the dollar breaks down, you’ll also likely see disruptions in supply chains, including shipments of food to grocery stores. People should consider maintaining stockpiles of basic goods needed for living, much as they would for a natural disaster. I sit on the Hayward fault in California. I have a supply of goods and basic necessities in case something terrible happens-natural or man-made-that will carry me for a couple of months. It may take that long for a barter system to evolve, which I think is what you’re going to end up with; at least until a new currency system is reorganized and you get a government that’s able to bring its fiscal house into order. No currency system in the U.S. is going to work unless the fiscal conditions that drove it into oblivion are also addressed.

I like physical gold and silver. I look to gold as a primary hedge. If you can come out of this holding gold, you’ll be in a position where you’ll be able to take advantage of some extraordinary investment opportunities that will follow.

It’s coming, and top (non-mainstream) economists are telling us to get ready.

Contrary to what we hear from Mr. Bernanke, Mr. Geithner, and Mr. Paul Krugman, the economy will not continue to grow indefinitely and we have not completely recovered yet. This is all part of a greater depressive trend in the economy and if Mr. Williams is right, the real numbers will show economic contraction in the latter part of 2010. What will the stock market and bond markets do once global investors and US debt buyers realize that the so-called recovery was nothing more than a mirage?

The Federal Reserve is printing trillions of dollars, and when it becomes apparent that the plans put forth by President Bush and President Obama have failed, we are going to be in serious trouble.

We are going to side with Mr. Williams on a coming hyperinflationary destruction of the US Dollar at some point in the near future (timeframe: +- 5 years), and we hope that Mr. Williams’ assessment of a brief period of disruption to commerce is accurate. Because if it is anything longer than that, then the shit will most certainly be hitting the fan in the style of The Day the Dollar Died or Patriots, and that will not be in any way pleasant, even for those of us who are ready for it.

VIDEO: Bilderberg Meeting 2012. The Secret Order Revealed with Mark Anderson

Every Day a New Elitist Fairy Tale – Now ‘Earth Hour’

The Daily Bell
Friday, March 30, 2012

Not “I Do” at Earth Hour, but “I will” … This year’s theme for Earth Hour that happens on Saturday at 8.30pm is “I Will If You Will”, a challenge-based platform that encourages people to go ‘beyond the hour’ to preserve and protect the planet. Even as malls, government offices and corporations pull the plug on all but essential lights in support of the annual event to raise awareness of climate change, some companies have taken steps to make a change for more than 60 minutes and much earlier, too. Singapore country CEO of Credit Suisse, Mr Lito Camacho, issued a challenge to his 5,000 staff a fortnight earlier, pledging to plant 100 trees if staff commit to reduce their carbon footprint, by 500,000 kilograms (kg) of carbon dioxide by end of the year. The company intends to track the reduction target with a customised, web-based carbon footprint monitor which calculates everything from a water-saving shower head to the use of LED lighting. – ChannelNewsAsia

Dominant Social Theme:
Earth is a fragile planet and the mold growing on its surface must provide protection.

Free-Market Analysis:
Every time we turn around we are assaulted with another meme of elite propaganda. They are mostly fear-based, promoting scarcity themes.

Today, we are being beaten upside our collective pointy (elvish) heads with “Earth Hour.”

We call these dishonest fairy tales “dominant social themes,” and their point is to frighten people into giving up wealth and power to globalist facilities. This is how the power elite apparently intends to build global government.

One of the biggest of these fear-based promotions has to do with the all-around fragility of Earth. Various phony catastrophes are perpetually afflicting the Earth – most prominently global warming, which is caused by an overabundance of carbon.

We know this is an elite meme simply because although it has been thoroughly debunked it still re-occurs. Most recently a panel of scientists wrote in the Wall Street Journal that there had been no appreciable global warming for the past decade.

But still the propaganda pours out of places like Tavistock – the elite mill of scarcity promotions. We are supposed to believe that a paltry one or two percent of carbon dioxide generated by industry is clogging up the atmosphere and causing life-threatening difficulties.

If you scoured the Earth to a depth of about two feet all that would remain of human society is a few odd, traumatized souls and a bunch of holes. That’s our “footprint.” It doesn’t run very deep.

The idea that a kind of perambulating mold can “save” its putative medium is arrogance of a sort that could only have been concocted by modern elites intent on creating world government and wishing to use any ludicrous argument to advance it.

It is like positing that bacteria are responsible for salvaging their petri dishes. The Earth has been around for (at least) billions of years. It is basically a chunk of rock. Flora and fauna are apparently a fortitudinous or not so fortitudinous occurrence. The Earth has seen glaciers, droughts, volcanic eruptions, tidal waves and earthquakes and “survived” them all.

Worst case, the Earth is stripped of its living abundance and returns to the rocky surface of its prehistory. The only reason to “salvage” the Earth is if it begins to plunge toward the Sun. But dealing with that sort of situation is beyond us at the moment.

The well-know conservative columnist (and oil company PR rep), Alan Caruba, has penned an article about Earth Hour that makes some good points. Here’s an excerpt:

On Saturday, 8:30 PM local time, everyone will be invited to turn off all their electrical devices and presumably sit in the dark. According to the World Wildlife Fund, Earth Hour is intended to “encourage American cities to prepare for the costly impacts of climate-related extreme weather and reduce their carbon footprint.”

Earth Hour is an example of the enormous funding available to the Greens and of their continued assault on the world’s population to encourage and maintain its message that the Earth is imperiled by mankind’s activities, i.e., the use of energy. Earth Hour is a huge piece of international propaganda. Millions of dollars and man-hours have been expended to get the lights turned off from the Eiffel Tower to the Empire State Building, the Leaning Tower of Pisa to Australia’s Opera House.

You may have noticed there is no longer any reference to “global warming.” That’s because a growing percentage of Americans have concluded that global warming is a hoax. The same charlatans behind Earth Hour and the forthcoming Earth Day on April 22nd have mostly abandoned any reference to global warming and are now lying to you about “climate change” and, soon enough, will shift their message to “sustainability.” …

I recommend that you read a short book that explains how and why the environmental movement is a huge scam and a hideous attack on mankind. “Roosters of the Apocalypse” by Rael Jean Isaac ($8.95) is published by The Heartland Institute and can be purchased from its website …

Ms. Isaac tells the story of how, in today’s South Africa, the Xhosa tribe destroyed its economy in 1856. Based on a prophecy of a 15-year-old orphan girl, they killed an estimated half-million of their own cattle, ceased planting crops, and destroyed their grain stores. “By the end of 1857 between thirty and fifty thousand of them had starved to death—a third to a half of their population.”

Turning off all electricity during Earth Hour is no different from what the Xhosa tribe did and refusing to allow the drilling for oil and natural gas, or mining coal, all of which the United States has in sufficient abundance to make us energy independent and exporters of these energy reserves, is an act of national suicide; one that this international symbolism portends for any nation that abandons the energy that sustains economic growth and the welfare of millions.

Caruba was kind enough to send out the above “rant” as a press release. But he’s merely one voice amidst a flood, a deluge of mainstream media reports on the efficacy and necessity of an “Earth Hour.” Here’s something from the ChannelNewsAsia article excerpted at the beginning of this article:

“Over 50 staff have cumulatively pledged to cut their personal carbon footprints by over 25,000 kg” said Mr Ben Ridley, Credit Suisse’s APAC Head of Sustainability Affairs on the response thus far, adding that more pledges in the coming weeks are expected.

Taking part in Earth Hour for the third time is Singapore MAX Atria. Located at the Singapore EXPO, the eco-friendly certified convention centre will hold an Earth Hour edition flea market showcasing over 40 vendors selling eco-friendly products including pre-loved clothes, with 20 per cent of proceeds going to WWF Singapore.

Since Earth Hour is just right for candles to come out, the food court will offer cosy lit meals with non-essential lights switched off … Other than switching off for Earth Hour, other companies have green initiatives that go beyond just 60 minutes.

Millennium & Copthorne Hotels (M&C) has a month-long conservation program starting 31 March, to switch off the air conditioning and lights in the offices during lunch time and increase the temperature in public areas by one degree. The hotel chain has plastered posters all over staff common areas encouraging employees to “sleep naked” or without air conditioning.

On and on this nonsense goes. We are comforted mostly by our perception of what we call the Internet Reformation– and the damage that it is doing to such elite dominant social themes. Generally, the global warming meme is in disarray. And that’s just one example. Not too many people, thank goodness, will take Earth Hour seriously. Or at least fewer than before.

Like the Gutenberg Press before it, the Internet Reformation is undermining the established myths that Western elites have concocted in their efforts to create a New World Order. We like to think that the Daily Bell is one modest example.

VIDEO: United Nations Soft-Kill Depopulation Agenda Exposed with Jurriaan Maessen

Climate Change Skepticism a Sickness That Must be “Treated,” Says Professor

Global warming alarmist equates climate denial with racism

Paul Joseph Watson
Friday, March 30, 2012

Comparing skepticism of man-made global warming to racist beliefs, an Oregon-based professor of sociology and environmental studies has labeled doubts about anthropogenic climate change a “sickness” for which individuals need to be “treated”.

Professor Kari Norgaard, who is currently appearing at the ‘Planet Under Pressure’ conference in London, has presented a paper in which she argues that “cultural resistance” to accepting the premise that humans are responsible for climate change “must be recognized and treated” as an aberrant sociological behavior.

Norgaard equates skepticism of climate change alarmists – whose data is continually proven to be politicized, agenda driven and downright inaccurate – with racism, noting that overcoming such viewpoints poses a similar challenge “to racism or slavery in the U.S. South.”

“Professor Norgaard considers that fuzzy-studies academics such as herself must stand shoulder to shoulder with the actual real climate scientists who know some maths in an effort to change society and individuals for their own good. It’s not a new idea: trick-cyclists in Blighty and the US have lately called for a “science of communicating science” rather reminiscent of Isaac Asimov’s science-fictional “Psychohistory” discipline, able to predict and alter the behaviour of large populations,” reports the Register.

As Jurriaan Maessen documented yesterday, the ‘Planet Under Pressure’ confab at which Norgaard is appearing to push this insane drivel is nothing other than a strategy session for neo-eugenicists to hone their population control agenda.

A statement put out by the scientists behind the event calls for humans to be packed into denser cities (eco-gulags?) so that the rest of the planet can be surrendered to mother nature. It’s a similar idea to the nightmare ‘Planned-Opolis’ proposal put out by the Forum for the Future organization last year, in which human activity will be tightly regulated by a dictatorial technocracy in the name of saving the planet.

The mindset of this gaggle of arrogant, scoffing elitists in their drive to micro-manage the human race, which they regard as a plague on the earth, is best encapsulated by the following quote from ‘Planet Under Pressure’ attendee and Yale University professor Karen Seto.

“We certainly don’t want them (humans) strolling about the entire countryside. We want them to save land for nature by living closely [together],” Seto told MSNBC.

The effort to re-brand legitimate scientific dissent as a mental disorder that requires pharmacological or psychological treatment is a frightening glimpse into the Brave New World society climate change alarmists see themselves as ruling over.

Due to the fact that skepticism towards man-made global warming is running at an all time high, and with good reason, rather than admit they have lost the debate, climate change alarmists are instead advocating that their ideological opponents simply be drugged or brainwashed into compliance.

Norgaard’s effort to equate climate skepticism with racism as a disorder that requires “treatment” also serves as a reminder of the story we covered earlier this month about the establishment’s efforts to push the pharmaceutical heart drug Propranolol as a “cure” for racist thoughts.


Paul Joseph Watson
is the editor and writer for Prison He is the author of Order Out Of Chaos. Watson is also a regular fill-in host for The Alex Jones Show and Infowars Nightly News.

VIDEO: The U.N. Plan for Global Control Under Agenda 21 with Dr. Corey Gold

Thursday, March 29, 2012

The Race To The Bottom Continues: The BRICs Embrace Corporate Fascism

The BRICs Take Over

The Daily Bell
March 29, 2012

Banking on BRICS to deliver ... Even as New Delhi prepares for the arrival of BRICS Heads of States ... Besides the usual declarations on cooperation on political matters, social challenges, climate and energy, food and water, health and education, industry and trade, BRICS is likely to make two significant announcements this time, which will, in many ways, mark its coming of age. First — the formal launch of the "BRICS Exchange Alliance" in which the major stock exchanges of BRICS countries will offer investors index-based derivatives trading options of exchanges in domestic currency. This will allow investors within BRICS to invest in each other's progress, expand the offerings of the individual exchanges, facilitate greater liquidity, while simultaneously strengthening efforts to deepen financial integration through market-determined mechanisms. From talking to people in the know, this alliance is good to go, and the operational modalities around currency, settlement cycles and inter-exchange regulatory coordination are all issues that have been thought through and resolved. – The Hindu

Dominant Social Theme: The BRICs are a growing force that have come from nowhere to challenge the West.

Free-Market Analysis: Being natural skeptics, our elvish brain-trust distrusts the general BRIC ruckus. The argument (see above excerpt) is that the BRICs, in the natural order of things, have emerged to challenge a failing West. Now they are launching a joint derivatives stock exchange and their own version of a World Bank.

In fact, this narrative, from our point of view, is more directed history. Directed history is the faux history that the top Western power elites foment on a regular basis as they attempt to create world government.

This elite is fairly merciless and is not above fomenting world war apparently – which it used twice last century to try to create global government.

The elites work by creating dialectics. First they created nation-states via "colonialism," it would seem, and now they are aggregating these nation-states and creating a global dialectic.

There are several dialectics that the power elite is trying to create currently. One is an Islam-versus-the-West dialectic. We've written about this quite a bit. Another is the emergent BRICs-against-the-West dialectic.

Out of these dialectics, a new world order will apparently form: Thesis ... antithesis ... synthesis. For those who argue that the BRICs' emergence is a natural occurrence, we would point out that the name was made up by a Goldman Sachs banker and that the economic systems in place in the BRICs is a Western one.

The BRICs' current prosperity is, in our view, driven by a series of central banking bubbles and capital relocation of Western corporations away from Europe and the US.

One of the very little known methods by which technology was transferred wholesale away from the West was via "industrial standards." Several industrial standards were put into place by the West's largest corporations and industrial trade groups.

These standards forced companies to conform if they wanted to do business with the biggest Fortune 500 companies. Over time, companies had to draw up entire maps of how they produced their products.

As larger companies drew up these maps, it became easier and easier to transfer whole manufacturing facilities overseas. And that's what has taken place.

None of it is natural or inevitable. Certainly not the emergence of the BRICs, whose hyperstimulated economies are based on monopoly money printing just as in the West.

The combination of Western industry and technology plus Western banking systems has created the perception of a developing world rival to Western economic might.

In fact, this is a fairly artificial phenomenon, in our view. Just as the elites are pushing the BRICs up, so they are shoving the West down. The world must be homogenized – industrialization and living standards evened out – before true globalism can be established.

In our view, this is what's occurring now. We don't really believe all this is occurring "organically." Absent the kind of massive interference that is taking place in the world as the elites move human populations around like so many chess pieces, human cultures would be a good deal more discreet and static.

The kind of change that is taking place is manufactured. It is artificial. It is a galloping and galumphing evolution based on hyper-money printing and command-and-control corporatism.

Here's a video, one of many, that purveys this elite fairy tale.

(Video from VOAvideo's YouTube user channel.)

Central Banks Won’t Produce Natural Interest

The Daily
Thursday, March 29, 2012

The Bank of England should raise interest rates next week … Most people that read finance columns have heard of the “natural rate of unemployment”, and many will know that the term was introduced by Milton Friedman. But far fewer will know where he got the term. He said himself, in his Nobel Prize lecture, that “The ‘natural rate of unemployment’ [is] a term I introduced to parallel Knut Wicksell’s ‘natural rate of interest’”. But who was Knut Wicksell and what is the “natural rate of interest” – and does it matter? We shall see that it does indeed matter, and tells us something important about current UK monetary policy and the outlook for the UK economy and George Osborne’s chances of delivering his fiscal plans …Three years, now, at 0.5 percent, and counting. That compares with a natural rate of interest that was about 5 percent when times were better and will be around 3-3.5 percent now. (Essentially, add the 2.5 per cent RPI inflation rate that’s about the target to the 1 percent or so sustainable growth rate, and you get a decent guess at the natural rate.) Having interest rates so far below the natural rate damages the sustainable growth rate of the economy. – UK Telegraph/ Andrew Lilico

Dominant Social Theme: We just have to figure out what’s natural and then fake it.

Free-Market Analysis:
Here comes Andrew Lilico, an economist with Europe Economics, and a member of the Shadow Monetary Policy Committee, according to the UK Telegraph (see article above).

The gibberish contained in the above excerpt is only magnified throughout the article. It is really incredible. What is it about price fixing that such intelligent commentators don’t understand?

If you artificially set a price by force – and this is what central banks do – then that price is almost bound to be incorrect. Only the market itself can generate a “natural” rate of interest or determine monetary volume.

That’s because the market itself is competitive. The “Invisible Hand” of competition creates naturally fluctuating interest rates and the appropriate volume of money stuff.

This is why monetary competition historically yields up evermore efficient and healthy money. People voluntarily choose the kind of money they want and the volume of money as well.

Within this context, gold and silver have proven to be a historically popular money stuff. Used with each other, gold and silver provide a ratio. If the ratio becomes distorted, people can tell that someone is trying to manipulate the market. This called bi-metalism.

Greenbackerism has made a startling comeback of late, which we have long predicted, citing Ellen Brown‘s effective boosting of the idea that government ought to have the sole franchise to print money.

But regardless of whether a mercantilist public/private body like the Bank of England or Federal Reserve prints paper-fiat money, or a fully public enterprise, such as those found in India or China, the problem of the natural rate and volume remains. Once human beings arrogate to themselves such decisions, money itself cannot help but be distorted.

Both India and China are now suffering from vigorous price inflation. That’s because when human beings have a monopoly of something, it will inevitably be abused. It is impossible to expect mere flesh and blood not to print too much money. Money buys all kinds of fun, especially for those in control of it.

Over time, even within a competitive monetary environment, government eventually prints too much paper money, eventually debasing it. As this paper money became cheapened, people seek not to hold it, and try to get rid of it.

This is why schemes like Greenbackerism tend to lead to government consolidation of money authority. As people reject government money, those in charge gradually mandate its use. Within historical contexts, there tends to be an expansion of force as people are compelled to use what they would otherwise reject.

There are arguments that certain kinds of government monopoly money have proven more effective than other kinds. Ellen Brown, Bill Still and others argue that tally sticks were a wonderfully effective government initiated money that helped England build an empire.

But from our point of view this is perhaps a misreading on several fronts. First of all, there is nothing all that admirable about an empire. Societies tend to flourish, as we have often pointed out, when they are separate and singular but gathered closely together.

This allows people to travel from one place to another nearby place if they are being oppressed. Gradually over time, a culture of freedom is established as governments compete with one another to provide environments that are attractive and laissez faire.

Many great cultures have been established within this context. Rome had its Seven Hills, the Greek Golden Age and the Renaissance had city states, the United States had “these” united States.

Over time, consolidation usually takes place and gradually what was free and innovative becomes less so. Eventually dirigisme and socialism may set in.

Gradually the leaders of the consolidated country begin to become aggressive and to focus on outside threats to distract attention from an increasingly failed society. This is the empire phase.

It is unfortunate that most of history focuses on the “greatness” of empire when in fact, an “empire” is symptomatic of societal sickness not health.

During the tally stick era in Britain, Kings – having access to the money supply – apparently borrowed against the stock of tally sticks considerably for purposes of waging war. Not only that, but as tally sticks were generated to pay taxes, the volume of the money supply was seemingly artificially restricted.

This was great for those who controlled tally sticks – the ruling class – because an artificially restrained money deprived people of capital and likely had a retardant effect on social mobility and individual economic potential. Tally sticks were a perfect money for the elites.

There is seemingly no substitute for competitive money and for the Invisible Hand setting the volume and price of money. In economies that use gold and silver, hoarding and dishoarding sets the price of market money, along, perhaps, with the opening and closing of mines, depending on how much gold and silver is circulating. This is one reason why precious metals have been successful as money throughout history.

In the modern era, central banking has taken over the world – and the result is general catastrophe and ruin. This is only to be expected. It is in fact what those behind the system are intending to create.

The power elite that has seemingly installed modern monopoly fiat money – and the dollar reserve system itself – apparently seeks to build world government. It needs to foment economic turmoil and wars in order to move society toward one-world money.

Central banking is key to this strategy. The more monetary price fixing there is, the more economic chaos and catastrophe takes place. It is a closed loop, a virtuous circle from the power elite point of view.

The elites spend an enormous amount of time trying to justify central bank price fixing. It is one of their biggestdominant social themes – that only a handful of good, gray men can manage the economy and make decisions for everyone else.

Andrew Lilico wants us to believe that central banks ARE capable of mimicking natural rates of money production. In truth, there is no “natural interest rate” or rate of monetary production that human beings are EVER capable of creating.

Even if the top people at these monopoly money banks were capable of figuring out where the price and volume of money could be, there is no guarantee that they would generate the correct prices over time.

They would use their power for their OWN benefit. As indeed they have. We can see it clearly, even today. What misery there is in the world.

Conclusion: Power corrupts, and absolute power corrupts absolutely.

US Debt Ceiling D-Day: September 14, 2012

Zero Hedge
March 29, 2012

Earlier today, outgoing Treasury Secretary and tax challenged part-time pathological liar (see here) Tim Geithner said that any worries of the US debt ceiling are misplaced, and that at best such an event would occur “late in the year” (and to think the August 2011 extended $16.394 trillion debt ceiling was supposed to last well into 2013). Naturally, coming from Geithner, it meant this statement was a flat out lief the second it left his mouth, which is why we decided to do our own analysis of just when the latest and greatest debt ceiling would be breached. The answer is that at the current rate of debt issuance, which incidentally is going to accelerate sharply due to the recent extension of the payroll tax cuts which will require an incremental $100-150 billion total debt to be funded, and extrapolating future issuance solely on historical patterns, the US debt ceiling D-Day will be September 14, 2012. This means that there will be just over 6 weeks for the GOP to hijack each and every presidential debate before the November election with just this topic. Because there will hardly be anything more humiliating for Obama than to have to defend his platform even as the country is once again past the verge of insolvency, and forced to “commingle” retirement funds to keep Treasury operations running. Which incidentally is just as we predicted would happen when we explained why the GOP fast shelved the payroll tax debate so rapidly. It was nothing but a prelude to precisely this. Because once it is raised, and it will be raised of course, next up will be yet another ratings downgrade by S&P and this time, Moody’s as well. All of which will most likely happen before November.

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$7, $8 Gas? Sen. Paul Tries to Blunt Bill That Would Push Your Gas Prices Higher

New American
March 29, 2012

Remember $1.83 per gallon gasoline? Seems like a very distant memory? That was the national average price we paid for the precious liquid when President Obama took over the White House in January 2009.

Apparently not satisfied with helping to fuel a more than 100 percent increase in the gas price, the Obama administration and its congressional allies are pushing legislation that would penalize the domestic oil companies that are now producing new jobs in our struggling economy and providing much-needed energy that is making us less dependent on foreign sources. Sen. Robert Menendez (D-N.J.) has introduced S. 2204, which he has named the “Repeal Big Oil Tax Subsidies Act.” It might be more apropos to name it the “Prolong the Recession and Double Our Gas Prices Again Act.”

Sen. Rand Paul (R-Ky.) rose on the Senate floor on Tuesday, March 27, to challenge the wisdom of raising taxes on oil companies at this critical time, and to offer two amendments to the bill aimed at ending taxpayer-subsidized loans to the favored “alternative energy” sector, such as the $500 million loan toSolyndra, the failed solar panel manufacturer.

“Gas prices have doubled under this President,” said Sen. Paul, “so today this body will consider new legislation which the other side, I assume thinks will make the situation better. But the other side’s solution is to raise taxes on oil companies, raise taxes by $25 billion.”

Full article here:

Wednesday, March 28, 2012

Some Hopes For Rebounds Will Only Fall Flat

Bob Chapman
International Forecaster
March 28, 2012

Seven months after the official announcement on 9/21/11 of “Operation Twist” not much progress has been made at the long end of the market to reduce yields. The yield on the 10-year T-note has gone from 1.88% to 2.3% and the 30-year bond went from 3.03% to 3.41%. The episode has been marred by hedge fund and sovereign selling, which has left the short end a little higher, but the long end much higher. The question now is how much did this cost the Fed for such disappointing results? Or in fact was this really their objective? We may never know, because the Fed hides what they do not want anyone to know. These results might not seem important but US Treasury instruments are the foundation of the global monetary system. If yields continue to increase, like they are, it forces the Fed into QE 3, which we believe is inevitable. Other nations are not cooperating, as we saw in January and February that US banks bought more government paper than they had in all of 2011. If this continues the banks will be forced to lend. That could cause a minor recovery and more inflation. That is not something the banks want to do. They want the safety of low yielding Treasuries that is why they still sit on $2 trillion in Treasuries. As of yet stock markets may be trending higher based on recovery, but we are yet to see a follow through. Recent statistics tell us generally speaking the public is out of the stock market. We believe because they do not see recovery either and many are listening to alternative radio and getting news from the Internet, which tells them of the massive markets manipulation that the US government and the Fed are engaged in. You cannot win unless you understand what they are up too.

The embargo sanctions against Iran we have spoken about on the air and in this publication. We figured out long before almost all others that these moves had to be some of the stupidest in history. The elitists have this time shot themselves in both feet. SWIFT is very important, because it settles almost every instruction in US dollars. Denying the system to other currencies is foolish. The players in dollars can create something similar to swift code or have some other front for them. End running oil shipments are even easier. As a feeble answer the US will sell oil from its oil reserves to try to reduce prices. This action is nothing but smoke and mirrors.

It is no secret that municipalities all over America are in serious trouble. Their pension plans and those of companies are vastly underfunded and little is being done to solve the problem. In 1983, 62% of Americans had pension plans. Today that figure is 17%, but this is still a large group of future participants, who for the most part are not going to get what they paid for and some, will end up with nothing. The reason for municipal failures for the most part is that pension and health care plans were never properly funded, investment results were terrible and incompetence was the order of the day. Corporate managers did not do much better. We call this the pension bomb and it has finally arrived, late but lethal.

The terrible part about all this is that the pension plan you are counting on might not be there for you when you need it. You may also not be able to take it from the pension writer leaving you with absolutely no control. Being generally ignorant to most of these facts Americans have little put away personally for retirement. They are short close to $7 trillion.

For the next 20 years 10,000 baby boomers will retire every day, which presents a crisis of spectacular magnitude. Some will get partial checks from Social Security and pensions or perhaps nothing at all. Now you know why you have to invest into gold and silver coins, bullion and shares. They are your only protection. In addition if the Dow falls back to 6550, as it recently did, we could be looking at 50% losses in pension fund stock investments. Already the total amount of unfunded pension and health care obligations for just state and local governments in the US is $4.4 trillion. We hope you have gotten the message?

Unfortunately Spain is experiencing an accelerating fall in property prices that has been expected for some time. Spaniards expected higher prices, which turned out to be wishful thinking. The economy is saddled with depression. Unemployment is 23% and youth joblessness is close to 50%. Austerity reigns and all the seeds of revolution have been planted. In response at demonstrations the police have been brutal. If you want a violent revolution, that is the way to start it. As depression grows, so does discontent.

The banks mostly owned by outsiders are basket cases waiting for a bailout, which, of course, will be paid for by the people. We are talking about the fastest fall on record. Those prices fell 11.2% in the 4th quarter yoy, and versus 7.4% in the 3rd quarter. This kind of fall is similar to what occurred in the US after the 2008 credit crisis. Banks that have been holding defaulted loans in construction and real estate worth $520 billion are far more than bankrupt. That is a monstrous debt and it will have to be dealt with along with sovereign debt of $1.5 trillion. That is not a pretty picture.

Spain’s public debt to GDP is now predicted to be 4.8%. They are not supposed to exceed 3% of GDP. Private sector debt, mainly the banks, have debt of more than 200% of GDP. Taking a lesson from Greece if the new administration cuts too much the depression will deepen, as will tax revenues as well as unemployment costs will accelerate. Bond rates have climbed even higher than those of Italy making the situation even wore. Like Greece, Portugal, Italy and Ireland be believe in time that Spain will have to default.

Spain’s PM Rojay in his recently stated position is saying we want more time to solve the problems. His challenge to the ECB and the euro zone members is do not push to hard and too far, or you will see a real banking crisis. We will just default like the rest of the weak members. It is obvious that newer politicians on the scene are not socialists in the European sense. They tend to be middle of the road and socialists on only certain issues. The lure of world government is not alluring to them, at least not presently. Europeans do not want the euro and perhaps not the EU as well. They were created to keep Germany from conquering the world. Connective alliances really have not worked even though they are still in place. Their failure gives Rojay an opportunity for challenge to the system. He seems, as well, to be giving assistance to Germany to allow it to exit the euro zone as well and perhaps the EU. We see little chance Germans will subsidize $3 trillion.

Not much is said about Switzerland, probably because they are outside the euro zone and the EU and they use the Swiss franc as a currency. The Swiss are major exporters and are dependent upon those exports. In the final quarter of 2011 exports fell 6.8% due to its strong currency. As a result the economy is headed for recession and deflation simultaneously. As long as the euro crisis continues you will see a flight to the Swiss franc by owners of euros. The SNB has been maintaining the franc at 1.20 to the euro and it remains to be seen if that can be continued. The Swiss and the Germans have to come to terms with their stronger economies and that is not going to change. All indications are that the Swiss are going to be soon touching on recession and Germany won’t be far behind, unless banks start lending to business.

Unemployment is increasing and retail sales are falling. Even exports within the euro zone fell 4.2%, as investments fell. As we have said before unless banks lend there can be no overall recovery. Falling employment and retail is taking Switzerland toward deflation. This is not good, because the Swiss could be the catalyst to take Europe and the world into deflation and perhaps even into depression.

Bob Chapman – Goldseek Radio – 23 March 2012

Bob Chapman – Financial Survival 1/2 – March 26, 2012

Bob Chapman – Financial Survival 2/2 – March 26, 2012

Interview 485 – The International Forecaster with Bob Chapman

Bob Chapman – USAprepares – March 27, 2012

The Cancer Report (Full Version)

Last week the Dow fell 1.1%, S&P fell 0.5%, Nasdaq 100 rose 0.6% and the Russell 2,000 was unchanged. Cyclicals fell 2%; transports 2.5%; consumers 0.4% and utilities 0.4%. Banks fell 0.4%, as broker/dealers rose 0.3%. High tech gained 0.4%; semis rose 0.1% Internets gained 1.6% and biotech’s were unchanged. Gold bullion was about unchanged, the HUI fell 06% and the USDX fell 0.6% to 79.32.

The 2-year T-bill fell 1 bps to 0.35%; the 10-year T-notes fell 6 bps to 2.23%. The German 10-year bund fell 19 bps to 1.86%.

The Freddie Mac 30-year fixed rate mortgage surged 16 bps to 4.08%. The 15’s rose 14 bps to 3.30%, the 1-year ARMs rose 5 bps to 2.84% and the 30-year jumbos rose 4 bps to 4.61%.

Fed credit fell $0.3 billion up 10.2% yoy. Fed holdings of central banks rose $57 billion ytd and $76 billion yoy, or 2.2%.

M2, narrow, money supply rose $12 billion to $9.813 trillion. That is up 8.7% ytd and 9.8% yoy.

Total money market fund assets fell $15.5 billion to $2.622 trillion.

Total commercial paper outstanding fell $5.6 billion to $931 billion.

All the people and all the king’s men that were playing for the long-awaited housing rebound were chagrined on Friday.

February New Home sales fell 5k (to 25k, 2nd worst Feb; 60% not built yet) to 313k annualized; 325k was expected. Plus KBH reported ugly Q1 earnings…If Team Obama doesn’t produce a new scheme to boost housing soon, homebuilder stocks, which have more than doubled since October, will be very unhappy.

We have warned for the past several weeks that just like last year, perverted seasonal adjustments have overstated economic strength in Q4 and Q1 due to the Crisis of 2008-2009; and this year, record warm weather is purloining future economic activity.

The beneficial seasonal adjustments are about to turn negative. Be prepared!

Fed warned not to keep rates too low for too long. With Fed Chairman Ben Bernanke looking on from the audience, Masaaki Shirakawa, the governor of the Bank of Japan, and Jaime Caruana, the general manager of the Bank for International Settlements, said extremely easy policy is appropriate in response to a crisis but the costs of the policy rise as time goes by. He [the hypocritical Shirakawa] pointed to rising commodity prices as one of the unintended consequences of the Fed’s low rate policies.

Fitch: The Federal Reserve Bank of New York recently reported that as many as 27% of all student loan borrowers are more than 30 days past due. Recent estimates mark outstanding student loans at $900 billion- $1 trillion. Fitch believes that the recent increase in past-due and defaulted student loans presents a risk to investors in private student loan ABS, but not those in ABS trusts backed by FFELP loans.

Several macroeconomic factors are putting pressure on student loan borrowers. The main ones are unemployment and underemployment. The Bureau of Labor Statistics estimates the current unemployment rate for people 20 to 24 years old at nearly 14% and for those 25 to 34 years old, 8.7%. Underemployment is difficult to measure…but it is likely having a negative impact…

Diana Olick: Housing Hype: Recovery Turns to Relapse? And then an email from a Realtor in New Jersey: “Just reviewed March buyer clicks, Google’s analytics on all the sites we monitor – March is turning out to be the weakest month since last October re: Buyer interest..”…

Investors are still rushing into the market, with distressed sales making up a near-record 48.7 percent of sales in February on a three month moving average, according to a new report today from Campbell/Inside Mortgage Finance. Investors are now a full quarter of the market, and they are increasing their activity in short sales (when a lender allows the home to be sold for less than the value of the mortgage).

Don’t get me wrong, investors buying up the distress is necessary to cleanse the market, but it is not real recovery. Mortgage originations are at a 12-year low, despite record low rates. Normal, “organic” home buyers, move-up owner occupants, are not flooding back into this market…

The Rich Get Even Richer [Thanks to Ben; too many Ivy profs ignore facts that contradict their biases.]

In 2010…a dizzying 93 percent of the additional income created in the country that year, compared to 2009 — $288 billion — went to the top 1 percent of taxpayers, those with at least $352,000 in income. That delivered an average single-year pay increase of 11.6 percent to each of these households…the super rich got rich faster than the merely rich. In 2010, 37 percent of these additional earnings went to just the top 0.01 percent, a teaspoon-size collection of about 15,000 households with average incomes of $23.8 million. These fortunate few saw their incomes rise by 21.5 percent. The bottom 99 percent received a microscopic $80 increase in pay per person in 2010, after adjusting for inflation. The top 1 percent, whose average income is $1,019,089, had an 11.6 percent increase in income…

A senior House Republican on Monday accused President Obama of going back on promises he would not weaken U.S. missile defenses through negotiations with Russia after the president was overheard promising more concessions after his reelection.

Rep. Michael R. Turner (R., Ohio), chairman of the House Armed Services subcommittee on strategic forces, sought an explanation for the overheard comments made by the president Monday in a discussion in Seoul with Russian President Dmitri Medvedev…Senate Republican Whip Jon Kyl criticized the president for promising concessions on missile defense.

Moody’s has slashed the credit ratings of more than $2.5bn of debt issued by Detroit in a move that could trigger payments related to its swap agreements, placing further pressure on the city’s precarious finances. More than $2bn of Detroit’s debt was downgraded… by two notches to B2 from Ba3. A downgrade below Ba3 results in a termination of agreements that swap payments on a chunk of that debt from floating to fixed rates. That termination allows Detroit’s counterparties to demand a payment of $350m over the next seven years, the mayor’s office said… Detroit has accumulated debts of more than $10bn, and its budget deficit could swell to $270m by the end of June.

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Europe’s Bazooka Will Fire Blanks… Good Luck Killing the Crisis With That

Zero Hedge
by Phoenix Capital Research
March 28, 2012

Europe continues to take a page out of Hank Paulson’s “Crisis Combat” booklet, by unveiling one monetary “bazooka” after another. Obviously, EU leaders didn’t notice that Paulson’s “bazooka” completely failed to stop the 2008 Crash.

Even more strangely, they keep pulling out bazooka after bazooka, first unveiling the EFSF which was supposed to raise €1 trillion but failed to raise even €10 billion without having to intervene in its own bond auctions.

Then came the ESM, which was supposed to be another mega-bailout fund, which as before, is having trouble raising funds. After all, if one bailout fund is a dud, why would launching another fix anything?

Oh, and I forgot to mention that both bailout funds will be leveraged… which Europe obviously doesn’t have enough of already (the EU banking system as a whole is leveraged at 26 to 1. Lehman Brothers was at 30-to-1 when it imploded).

Indeed, you don’t even need to look at the math (though the math is impossible and makes the premise of “saving Europe” even more insane) to know that this can’t work. Which is why the idea that the EU as a whole can create mega-bailout funds to put up a “firewall” around its banking system is outright absurd.

The EU is 27 countries. Of these, only 17 use the Euro. And these countries have a long, bloody history of political conflicts with one another. We’ve already seen hints of this with Germany calling Greece a “bottomless hole” to which Greece responded by portraying German politicians as Nazis.

Spain, France, and the others aren’t exactly the best of friends either. And as their respective economies collapse at varying speeds (even Germany posted negative QoQ GDP for 4Q11), political tensions will rise even more rapidly.

So in the end, Europe’s bazookas will be firing blanks (assuming they even can fire at all, which their respective efforts to raise capital call into doubt). Which brings me back to one of my central themes for Europe: that you cannot band together such disparate economies and cultures in one monetary union and expect it to work.

Again, this is common sense. And when we add in the math, it becomes even more clear just how insane these political proposals are.

Consider Germany, for instance. As I’ve noted for months now, that country sports a REAL Debt to GDP of 200% (from former Bundesbank officials’ own admissions) when you include unfunded liabilities. And Germany is somehow going to bailout Italy or Spain (which both sport REAL Debt to GDPs north of 300%)?!?

Again, the whole thing is absurd. The entire European financial system is just one big house of cards, propped up by the hopes that the ECB can hold this thing together.

But it can’t. Europe isn’t the US. And the ECB isn’t the Federal Reserve. What I mean is that you can maybe fool investors into believing that a financial system is fixed if you’re only dealing with one country and one Central Bank. But when you’re dealing with 17+ countries, many of which have their own national Central Banks, and you’re trying to save this system with a larger regional Central Bank (the ECB) the whole thing is impossible.

Indeed, because of its interventions and bond purchases, ¼ of the ECB’s balance sheet is now PIIGS debt AKA totally worthless junk. And the ECB claims it isn’t going to take any losses on these holdings either. No, instead it’s going to roll the losses back onto the shoulders of the individual national Central Banks.

How is that going to work out? The ECB steps in to save the day and stop the bond market from imploding… but the minute it’s clear that losses are coming, it’s going to roll its holdings back onto the specific sovereigns’ balance sheets?

So… PIIGS debt is essentially just a monetary “hot potato” that the various Central Banks in Europe are tossing around? And this is supposed to save Europe? Good luck with that.

On that note, I fully believe the EU is heading into a Crisis in the May-June window of time. We have a confluence of negative factors (monetary, political, technical, etc.) hitting during that window of time, which is unlike anything I’ve ever seen before. And unlike the 2008 Crisis, the Central Banks won’t be able to rein this one in.

Why? Because Europe’s banking system is $46 trillion in size. And the Fed and ECB are already leveraged to the max having spent all their ammunition combating the Crisis this far.

So if you’re not already taking steps to prepare for the coming collapse, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called Surviving a Crisis Four Times Worse Than 2008 and it’s chock full of information on how to not only survive but thrive during if this particular black swan (or any of the others lurking in the system) comes to pass.

This report is 100% FREE. You can pick up a copy today at: under the OUR FREE REPORTS tab.

Good Investing!

Graham Summers

PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.

And ALL of this is available for FREE under the OUR FREE REPORTS tab at:

As The ECB Crosses The Inflationary Rubicon Has Mario Draghi Lost All Control?

Zero Hedge
Wednesday, March 28, 2012

Having been heralded around the world for solving Europe’s crisis, ECB head Mario Draghi confidently states (as does every other central banker in the world) that “should the inflation outlook worsen, we would immediately take preventive steps”. However, a recent analysis by Tornell and Westermann at VOX suggests the ECB has hit its limit with regard to its anti-inflationary fighting measures. The ECB appears to have lost control over standard measures of tightening: short-term interest rates (since short-term lending to banks has dropped to practically zero), increase in minimum reserve requirements (practically impossible withouit crushing the banks that they have propped up due to the sharp asymmetries – the recent cut from 2% to 1% minimum reserves saw a remarkable EUR104bn drop), and finally asset sales (the quantity of ‘sensitive’ or encumbered assets on the ECB’s books has reached such a scale – due to LTRO, SMP, and ELA programs – leaving the ‘sellable’ non-sensitive assets at a level below excess deposits for the first time in ECB history). As the authors note, while this does not immediately produce an inflation flare, the lack of maneuvering space will induce an inflationary bias to ECB monetary policy as Draghi will find it increasingly expensive at the margin to hit the anti-inflationary brakes. “This bias puts the Eurozone at risk of de-anchoring long-run inflationary expectations. The danger is not inflation today, but the de-anchoring of expectations about future inflation.” As we have noted many times before, the ECB (and for that matter most central banks in the world) need Goldilocks.

Standard monetary ‘instruments’ to control inflationary concerns (or the ECB’s ability to absorb an excessive increase in liquidity) have hit a limit:

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VIDEO: Cooked Government Numbers Say National Debt Doomsday Coming In 2027 At The Very Latest!!!

Elites Crush PIGS – Old Game Plan Made Anew?

Daily Bell
March 28, 2012

Spain’s economy contracts as recession fears grow … The Spanish economy has shrunk for the first time in two years, increasing fears the country could be heading for a recession. The country’s economy shrank by 0.3% in the three months to December, after stagnating in the previous quarter. Household spending fell by 1.1% from the previous quarter, while spending by public bodies dropped by 3.6%. The country has the highest jobless rate in the EU, with almost one in four people out of work. Spain’s unemployment figure passed the five million mark in the last quarter of 2011. Figures showed 5.3 million people were out of work at the end of December, up from 4.9 million in the third quarter. The downbeat fourth-quarter economy figures come even before the impact of new austerity measures unveiled last month by new Spanish Prime Minister Mariano Rajoy. – BBC

Dominant Social Theme: Austerity is tough but builds character.

Free-Market Analysis: Did you hear that about half of Europe is in recession or headed that way? We can see from the above excerpt that Spain is certainly headed that way. Greece, Portugal and Ireland are also in various forms of economic collapse.

Call it recession, depression or simply cataclysmic economic conditions. But one way or another Southern Europe is in a terrible state. Greece is in a meltdown; half the young people in Spain aren’t working and Portugal and Ireland aren’t far behind.

Heck, let’s just call it a continental depression. And one that is as unnecessary as it is terrible. The elites that set up the European Union by subterfuge bribed the Southern government PIGS with funds.

This is no different than the way the tag team of the World Bank and International Monetary Fund act. The World Bank lends money to dictators and then hauls in the IMF to make the suffering citizens pay the bill.

The strategy is doubly delicious because the “banks” get blamed for what is essentially a top-end elite plot.Capitalism and the mechanical process of paying interest are blamed while the planners behind it all remain unscathed.

When things get too bad, other tried and true formulas are pushed to the fore. It’s all been done before, after all. The apparent dynastic families that are trying to set up world government are seemingly pushing ahead with this scheme via economic depression and war – as they have in the past.

We can see this same formula in use in the 1930s. First came a great money-printing euphoria in the 1920s, then a central-banking-caused depression and finally a world war. The war is generated during the depression as people grow angry and are ready to lash out at any perceived enemy.

Not only this, but a war allows the government to renounce its debts and put the entire economy on a command-and-control footing where young men are dragooned into military service to work for a dollar a day. Companies are commandeered to make military equipment. The depression is short-circuited by the government’s state of emergency.

Yes … we can see this sort of paradigm taking shape now if we look hard. And within this context austerity makes sense. Those whom the elites wish to manipulate must first be made destitute and miserable.

Only then will war and state dirigisme seem attractive or at least tolerable. Surely there were many individuals during the Great Depression that found war to be an attractive alternative to the prospect of starving slowly to death.

This is likely the plan. It seems evident and obvious to us, as we’ve pointed out numerous times, that the Western powers-that-be are setting up a kind of Islamic crescent in the Middle East. Almost every country that has been destabilized was secular and will now emerge with an Islamic government. Step by step, the West is creating an “Islamic threat.”

In the meantime, the creation of an economic collapse continues apace. It is the elite’s economy, after all. A tiny group of people now control the world’s central banks. And through money printing they have so distorted the world’s economy that it will take years, if not decades, to recover.

Within this context, the power elite continually aggravates the situation by pressing ruined civilizations to give up more wealth and treasure. It is a sub-dominant theme of sorts, that Europe needs to struggle through austerity to come out stronger and leaner.

What is also true is that these public promotions are patient based and focus on the hapless citizen as a passive observer. Just yesterday we pointed out how articles often refer to the average citizen as a patient, and elite central bankers as doctors.

And then there is the metaphor of the punchbowl that treats people as partygoers. And now we have the European metaphor of consumer as lazy weakling with central bankers seen as administering strong, severe medicine … austerity.

Always, people are presented as lazy, sick, lackadaisical or ne’er do wells staying at the “punch bowl” too long. Always, the current system is presented as stern, sorrowful, wise but merciless. It is a parent/child relationship with the self-appointed elites playing the role of omnipotent father figure.

The propaganda is relentless and contemptuous. In fact, he hundreds of millions of Europeans are not children. And the handful of bankers and Brussels bureaucrats supervising their demise are not their fathers.

Step back and look at the “big picture.” An economic depression is being foisted on the Western world and the world at large. Once the BRICs collapse, the world’s economy is finished. There will likely be no “recovery,” not in the short term anyway.

And so bang the drums of war. For war seems an inevitability. The one difference between now and the 1930s is the Internet and what we call the Internet Reformation.

Many more people are aware of the manipulations that we’ve presented above and written about numerous times along with the rest of the alternative media. The Renaissance and Reformation changed the context of the world after the advent of the Gutenberg Press. The Internet is doing so again.

Nothing is preordained. Time and the action of individuals – human action – will tell the tale.

VIDEO: America Is Held Hostage By The Banksters And The Military Industrial Complex! Dr. Steve Pieczenik Reports

Soros Criminal Conviction Exposes “Human Rights” Scam

Soros leverages “human rights” for personal gain – as does his global NGO empire

Tony Cartalucci
March 28, 2012

Bloomberg’s report, “Soros Loses Case Against French Insider-Trading Conviction,” indicates that an appeal based on a “human rights” violation against Wall Street speculator George Soros has been rejected by the “European Court of Human Rights.” Soros, who was convicted and fined for insider trading in 2002 regarding French bank Société Générale shares he bought in 1988, has built an empire out of obfuscating global criminal activity with the cause of “human rights.”

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Bernanke Claims That The Fed Has Averted A Second Great Depression By Bailing Out The Too Big To Fail Banks

The Economic Collapse
March 28, 2012

Federal Reserve Chairman Ben Bernanke claims that the Federal Reserve averted a second Great Depression by bailing out the big Wall Street banks during the last financial crisis, and he says that if a similar financial crisis comes along that the correct “policy response” will be to do the exact same thing again. This was the theme of the lecture that Bernanke delivered to students at George Washington University on Tuesday. In previous lectures Bernanke has defended the existence of the Fed and detailed the history of Fed activities, but on Tuesday he addressed things that have happened since he has been at the helm of the Fed. And according to Bernanke, he has been doing a great job. Bernanke told the students that the “threat of a second Great Depression was very real” and that the Federal Reserve did exactly what needed to be done to fix the financial system. Unfortunately, the truth is that all Bernanke did was kick the can a bit farther down the road. You can’t fix a debt problem with more debt, and the debt bubble we are living in today is far larger than it was in 2008. Will Bernanke still be trying to portray himself as a hero when this house of cards finally falls apart?

During his lecture to the students on Tuesday, Bernanke stated the following….

“I think the view is increasingly gaining acceptance that without the forceful policy response that stabilized the financial system in 2008 and early 2009, we could have had a much worse outcome in the economy.”

So what did that “forceful policy response” entail?

Well, on slide 24 of his presentation to the students Bernanke tells us….

• On October 10, 2008, G‐7 countries agreed to
work together to stabilize the global financial
system. They agreed to
– prevent the failure of systemically important
financial institutions
– ensure financial institutions’ access to funding and
– restore depositor confidence
– work to normalize credit markets

Please note that not all financial institutions got bailed out.

In fact, hundreds of small and mid-size U.S. banks failed during the financial crisis.

It was only the “systemically important financial institutions” that got bailed out.

So who decided which financial institutions were important enough to be bailed out?

The Federal Reserve made those decisions. There were no Congressional votes and no input from the public. The Federal Reserve determined who the winners and the losers would be in secret and without any public debate.

Sure sounds “democratic”, eh?

But we are told to trust them because they are supposedly the experts.

So once the Federal Reserve bailed out the “too big to fail” banks, what was the outcome?

On page 25 of his presentation to the students Bernanke claimed that the bailouts successfully prevented the global financial system from collapsing….

• The international policy response averted the collapse of the global financial system.

But it wasn’t just big Wall Street banks that got bailed out. Bernanke says that AIG was also bailed out because the insurance company was deemed to be too “interconnected with many other parts of the global financial system” to be allowed to fail….

Because AIG was interconnected with many other parts of the global financial system, its failure would have had a massive effect on other financial firms and markets.

Once again, we see that it is the Federal Reserve who picks the winners and the losers.

AIG got bailed out and was then able to pay 100 cents on the dollar of what it owed to Goldman Sachs.

That sure worked out well for Goldman Sachs.

In all, the Federal Reserve issued a grand total of more than 16 trillion dollarsin secret loans during the financial crisis.

The big Wall Street banks got showered with cash while hundreds of smaller banks were allowed to die like dogs.

The fact that the Fed greatly favors the big Wall Street banks has allowed them to grow massively in size and in power.

Back in 1970, the 5 biggest U.S. banks held 17 percent of all U.S. banking industry assets.

Today, the 5 biggest U.S. banks hold 52 percent of all U.S. banking industry assets.

The “too big to fail” banks just keep getting bigger and bigger and bigger.

Yet during his presentation to the students, Bernanke tried to talk out of both sides of his mouth by claiming that it is not a good thing for some banks to be “too big to fail”….

“But clearly, it is something fundamentally wrong with a system in which some companies are ‘too big to fail.’”

So who is to blame for them being so big?

Well, the Federal Reserve is probably the biggest culprit.

Thanks Bernanke.

The big Wall Street banks are bigger than ever and they are also more unstable than ever.

According to the Comptroller of the Currency, the biggest U.S. banks have exposure to derivatives that is absolutely mind blowing. Just check out these numbers which have just been released….

JPMorgan Chase – $70.1 Trillion

Citibank – $52.1 Trillion

Bank of America – $50.1 Trillion

Goldman Sachs – $44.2 Trillion

So what is going to happen when that bubble pops?

Is Bernanke going to zap tens of trillions of dollars into existence to bail out that gigantic mess?

Meanwhile, the debt bubble that we are all living in just keeps exploding in size.

Total student loan debt in the United States is over 1 trillion dollars at this point. Consumer debt is rising. Millions of mortgages are past due.

The American people are not in better financial condition than they were during the last financial crisis. In fact, they are significantly worse off.

All over America, state and local governments are also drowning in debt. In fact, there have been several very notable municipal bankruptcies lately.

And the U.S. government is racking up debt at a pace that is almost unimaginable.

When the last financial crisis began, the U.S. national debt was about 10 trillion dollars.

Today, it has risen to 15.5 trillion dollars.

So Bernanke did not fix anything.

The best that can be said is that he kicked the can down the road a little bit and made our long-term financial problems a lot worse at the same time.

Bernanke can create money out of thin air and loan it to his friends all he wants, but he is not going to be able to prevent this house of cards from crashing down indefinitely.

So grab a bucket of popcorn and get ready. The next few years are going to be fascinating to watch.

Fed Boss Bernanke Promises Record High Gas Prices Through Summer

Kurt Nimmo
March 28, 2012

Federal Reserve boss Ben Bernanke told ABC’s Diane Swayer on Tuesday that gas prices will continue to skyrocket through the summer.

Bernanke told Sawyer gas prices “are a major problem” and he admitted they are “a hardship for lots of people.”

During the interview, he tried to pawn off the fallacy that gas prices are responsible for inflation, which he said will escalate over the next few months.

By inflation Bernanke means price increases. As Ron Paul notes, blame for this can be placed at the doorstep of the Federal Reserve.

“Most economists fail to understand that inflation is at its root a monetary phenomenon,” Paul wrote last March. “There may be other factors that contribute to price increases, such as famine, flooding, or global unrest, but those effects are transient. Consistently citing only these factors, while never acknowledging the effects of monetary policy, is a cop-out.”

Bernanke also claimed the rise in gas prices can be attributed to Iran and troubles in the Middle East. “The Middle East is very unpredictable — lots of things happening with respect to Iran and so on, so you know, we obviously — need to be — very attentive to that,” he told Sawyer.

Bernanke did not bother to explain how the Federal Reserve creates monetary inflation. It is really quite simple. More money equals less value.

The Federal Reserve is currently doing this through quantitative easing – increasing the money supply and flooding financial institutions with capital. Economists note that the problem with this is that although there is more money in the economic system, there is still a fixed amount of goods for sale.

Bernanke “admits he doesn’t understand why the economy is the way it is. Reality doesn’t fit his theory,” writes Zero Hedge. “So, what do you do when you are the head of the world’s biggest printing press, and don’t know what else to do? Why QE3 of course.”

On Tuesday, Bernanke hinted that QE3 may be right around the corner. He said more dilution of the money supply will be required due to vexatious unemployment.

High unemployment is directly related the the Federal Reserve and its engineering of boom and bust cycles through monetary policy. The Fed – as Bernanke has sheepishly admitted – was responsible for the so-called Great Depression and its staggering unemployment. It’s the same today.

Ben Bernanke is simply reading his bankster script, as instructed. If he was sincere, he would admit that rising oil prices do not create inflation. Oil prices are a reflection of a devalued dollar.

In an interview last year, ShadowStats editor John Williams said “the dollar’s weakness is doubly inflationary. It is the biggest factor behind the ongoing rise in oil prices.”

It’s not greedy oil baron in the Middle East or Iran threatening to close down the Strait of Hormuz in response to an attack.

It’s the Federal Reserve and the central banks.