Tuesday, May 29, 2012

Spain Runs Out Of Money To Feed The Zombies

Zero Hedge
May 29, 2012

One of the problems with the Hispanic Pandora’s box unleashed by a now insolvent Bankia, which as we noted some time ago, is merely the Canary in the Coalmine, is that once the case study “example” of rewarding terminal failure is in the open, everyone else who happens to be insolvent also wants to give it a try. And in the case of Spain it quite literally may be “everyone else.” But before we get there, we just get a rude awakening from The Telegraph’s Ambrose Evans-Pritchard that just as the bailout party is getting started, Spain is officially out of bailout money: “where is the €23.5 billion for the Bankia rescue going to come from? The state’s Fund for Orderly Bank Restructuring (FROB) is down to €5.3 billion.”

From here on out, the alternatives have been discussed to death and are clear as day: either the ECB, and the global central bank syndicate, inflates away the debt, which can only happen if Germany gives the ECB a carte blanche to print up the the $3-5 trillion required to backstop the European financial system, or we proceed straight to an instance of “Odius debt”/debt moratorium/write down, which however with trillions in daisy-chained, rehypothecated, partly submerged within the broker-dealer mediated shadow banking system, liabilities permeating throughout the global financial system, the outcome would be a tremor that shakes the very foundations of the financial system, in the process also impairing the $1 quadrillion OTC derivative credit money pyramid. In other words: nobody wants to, pardon, nobody dares to do anything, and the best Europe, and by implication the world, can hope for is to survive day to day, without launching the terminal financial D-Day. Pritchard’s summary of next steps is expected: “The result of Europe’s policy paralysis is more likely to be a disorderly break-up as Spain – and others – act desperately in their own national interest. Se salve quien pueda.” Only it is not only Europe. It is the entire world. But it will start in Europe. And specifically Spain, which unlike Greece is too big to be swept under the rug. It is also a place where the zombies are now congregating.

In an indication of just how surreal the modern financial world has become, none other than Bloomberg has just come out with an article titled “Spain Delays and Prays That Zombies Repay Debt.” We can only surmise there was some rhetorical humor in this headline, because as the past weekend demonstrated, the best zombies are capable of, especially those high on Zombie Dust, or its functional equivalent in the modern financial system: monetary methadone, as first penned here in March 2009, is to bite someone else’s face off with tragic consequences for all involved. What Bloomberg is certainly not joking about is that the financial zombies in Spain are now everywhere.

Spain is trying to clean up its banks, requiring lenders to set aside more for possible losses on loans deemed performing to developers like Metrovacesa SA (MVC), which hasn’t completed a project in more than a year and has none under way. While that represents about 30 billion euros ($38 billion) of increased provisions, it’s not enough because many of the loans said to be performing aren’t, said Mikel Echavarren, chairman of Irea, a Madrid-based finance company specializing in real estate.

“Spain has engaged in a policy of delay and pray,” Echavarren said in an interview. “The problem hasn’t been quantified by anyone because there is huge pressure not to tell the truth.”

Yes, lying and ignoring reality are truly signs of a stable, mature system. Just look at Bankia, which went from “profitable” to broke in a few days. And at the risk of repeating ourselves for the nth time, Bankia is merely the beginning.

The Economy Ministry says that Spanish banks have 184 billion euros of developers’ loans and assets that are “problematic,” while the remaining 123 billion euros are performing. The need for more reserves to cover losses on the loans can’t be ruled out, Nomura International analysts Daragh Quinn and Duncan Farr said in a May 14 report. If Spain took losses on developer loans like Ireland did, Spanish banks would need 8.9 billion euros under the best case to 76.5 billion euros of additional provisions in the worst scenario, Nomura estimates.

A hole as big as €76.5 billion, plugged with… the €5.3 billion left in the FROB? Good luck. And why is the hole there to begin with? Because of the same lies and same prayers and delays that are now the only policy instrument left in the administration’s arsenal:

Many Spanish banks are avoiding property sales so they don’t have to make “mark to market” valuations. Instead, they’re giving developers new loans to pay debt coming due to prevent defaults, said Ruben Manso, an economist at Mansolivar & IAX and a former Bank of Spain inspector.

“The larger banks have been selling bits and pieces and can absorb the losses,” Manso said. “Smaller savings banks are acting in bad faith in their refusal to allow transactions and saying they can’t mark to market because there isn’t one.”

A spokeswoman for CECA, the association for Spanish savings banks, who declined to be identified citing company policy, said the group can’t comment on the banks’ commercial policies.

While there is virtually no clarity, one case gives us a terrifying glimpse into the murky waters beneath the surface:

Metrovacesa, once Spain’s largest developer, is typical of the industry, according to Manso. The Madrid-based company, which once owned HSBC Holdings Plc’s London headquarters and had about a 50 billion-euro market value, was taken over by creditors in 2009 after its largest shareholder struggled to service billions of euros of debt.

Metrovacesa has racked up 1.8 billion euros of losses since 2008. It has debt of 5.1 billion euros and property assets valued at 3.9 billion euros.

“The banks have made writedowns in their Metrovacesa stakes, but they haven’t taken the full hit,” Manso said.

Metrovacesa currently trades at 38 cents a share, valuing the company at about 375.5 million euros. UBS AG downgraded the shares to sell on May 22 and changed its target price to 32 cents. In August, its lenders renegotiated the terms of 3.6 billion euros of its debt, extending maturities on 2.47 billion euros of obligations and granting a five-year grace period for interest payments on 1.12 billion euros of loans.

“Having no controlling stake in Metrovacesa means that its creditor banks don’t have to consolidate the company’s debt or assets and contaminate their own balance sheets,” Manso said. “There are hundreds of cases like Metrovacesa out there, albeit smaller in size, and this distorts the official amount of real estate and bad developer loans that banks profess to have.”

Terrifying, because proper accounting treatment would mean that the abovementioned €76.5 billion in max provisions is really orders of magnitude lower than what the final number will be.

Of course, it wouldn’t be an article about a ponzi scheme if it didn’t have an official refutation. Sure enough:

Metrovacesa isn’t a zombie, said a company spokesman, who
declined to be named citing company policy.

And That, ladies and gents, just won the prize for the most hilarious denial in the history of denials… to date. As the ponzi unravels more and more each day, the above case will be rather serious compared to what is in the pipeline. But for now, a company spokesman forced to deny that the company he works for is not an undead creature with a penchant for brains does it for us.

Metrovacesa has
projects in mind, but the market doesn’t allow homebuilding, he

Wait, wasn’t everything Bush’s fault? Or in the worst case: Merkel? Now we get one more culprit for lack of market clearing. Why, the market itself of course.

But if the above hasn’t caused blood to shoot out of one’s ears yet, the next paragraphs absolutely will.

More than half of Spain’s 67,000 developers can be categorized as “zombies,” according R.R. de Acuna & Asociados, a real-estate consulting firm. They have combined debt of 180 billion euros that will lead to 104 billion euros of losses that hasn’t been fully provisioned for, Acuna estimates.

They aren’t officially bankrupt because they have been refinanced time and time again,” Fernando Rodriguez de Acuna Martinez, a partner at the company, said by telephone. “Their assets are worth much less than their liabilities, they struggle to repay loans and they haven’t revaluated them to reflect today’s prices.”

And that, in a centrally planned world, is why no company is allowed to go bankrupt – because the central banks merely allow them to refi into perpetuity, even if, as is admitted, “assets are worth much less than their liabilities” – surely a justification to invoke the Fed’s emergency Section 13(3) emergency powers

In the meantime, the Fed’s domestic partner, the Bank of Spain is doing all it can to avoid the realization that zombies walk among us:

The Bank of Spain allows loans that are refinanced before turning delinquent and interest-only loans to be considered “normal” or “performing” on banks’ books, according to Manso.

“You won’t find that data anywhere,” Manso said. “There has been a lot of cheating going on where banks have lent developers new money, classed as new lending, so they can pay off their original loans.” That’s masking delinquency, he said.

Refinancing the current and future zombie developers will cost 30 billion euros over the next two years, according to Acuna. The depreciation of those developer assets from 2012 onwards will generate a further 20 billion euros of losses in that time, he said.

And saving the absolute farce for last:

Echavarren’s Irea brokered the refinancing of a 200 million-euro loan two years ago for a developer. After two more rounds of refinancing, there is about 180 million euros left on the loan and it’s classified as performing, he said, without identifying the company.

“The probability that this loan will be paid when it comes due is zero,” Echavarren said. “There are dozens of similar cases.”

Spain’s government and banks need to be more like their counterparts in Ireland and be more forthcoming about loan losses, according to Echavarren. He forecasts that the larger Spanish banks with income from international operations will be able to pay for domestic real-estate losses within two years. The rest can’t take such a hit and will have to be nationalized, he said.

“We cannot continue to jeopardize the whole financial system by not telling the truth,” Echavarren said.

Who says we can not: why, it is the sole prerogative of every central bank not to fight inflation, not to maximize employment, and lately, not even to keep the Russell 2000 over 800. It is merely to perpetuate the lies, to extend and pretend, to keep the zombies in check, to repeal every law of math, physics and statistics known to man: from the second law of thermodynamics, to simple sine wave oscillations, to prop the insolvent as the liabilities get exponentially bigger than the assets, to change accounting rules, and to pretend that reality matters, until everything finally crashes.

Which at this point is a certainty.

For those of an inquisitive nature, the only question is when. But, frankly, even that is becoming less and less relevant with each passing day.

Greek Retailers Stocking Up On Shutters In Case Of Riots, Alcohol Inventories Plunge

Zero Hedge
May 29, 2012

While America may be experiencing the occasional zombie apocalypse breakout, probably due to the absence of easily available edible iPads, Greek retailers are preparing for the retail version. “British electrical retailer Dixons has spent the last few weeks stockpiling security shutters to protect its nearly 100 stores across Greece in case of riot. The planning, says Dixons chief Sebastian James, may look alarmist but it’s good to be prepared.” Why Dixons? “Europe’s No 2 electrical retailer Dixons owns Greece’s market leading but loss-making Kotsovolos chain, which has a 25-percent market share selling iPads and laptops as well as washing machines, televisions and air conditioning units.” There we go: Bill Dudley’s edible iPads. The question is what happens when this easily digestable piece of plastic is thoroughly looted after local rioters dispense with the “shutters” supposedly protecting their wares. What will be on the menu next? Sadly not booze: “Diageo, the world’s biggest spirits group and the name behind Johnnie Walker whisky and Smirnoff vodka, has reacted by slashing its marketing spend in Greece, reducing stock levels and pulling cash quickly out of the country after it saw its Greek sales halve in the last three years to less than 100 million pounds.” So: no food, no booze, no cheap 99 cent iPad aps: this is the way the world’s most miserable monetary experiment ends.

Who else is preparing for a peak in rioting, and how?

Company bosses around Europe agree. As the financial crisis in Greece worsens, companies are getting ready for everything from social unrest to a complete meltdown of the financial system.

Those preparations include sweeping cash out of Greece every night, cutting debts, weeding out badly paying customers and readying for a switch to a new Greek drachma if the country is forced to abandon the euro.

“Most companies are getting ready and preparing for a Greek exit and have looked at cash, treasury and currency issues,” said Roger Bayly, a partner at advisory and accountancy firm KPMG.

Chief Executive James says the company has contingency plans to shutter up its 69 wholly owned and 29 franchised Greek stores and close them in the short term to protect against any threat of civil unrest and prepare for a switch to a new drachma.

Greece accounts for just over 3 percent of Dixon’s annual sales of around 8.2 billion pounds. The company competes with Europe’s No 1 electrical chain Metro and with a number of local players which James says may struggled to survive in a crisis.

“We know it would put paid to quite a lot of our competitors and give us an opportunity to get more of a market share. So we are ready and we would be very interested to see how it would turn out,” said James.

Dixons should know what is the rioter’s pick du jour:

Dixons, using its experience of dealing with riots in London and other British cities last summer – big flat-screen televisions were the looters’ booty of choice – has ordered enough shutters to protect its stores and is working with the Greek police and security groups.

The group’s sales dipped 9 percent in Italy, Greece and Turkey in the year to late April. The group does not split out Greek sales, but these three nations make up around 7 percent of the group’s annual sales.

The 6 Greek Cs:

“Businesses need to build in protection by checking payment terms, sweeping cash out of subsidiaries and into other currencies and check on the vulnerability of suppliers,” said Martin O’Donovan, ACT’s deputy policy and technical director.

KPMG’s Bayly advises his clients to check the six Cs when preparing for a possible Greek euro exit: cash, contracts, continuity, counterparties, control and commercial. He believes that automotive companies, tour operators and pharmaceutical groups would see the biggest immediate disruption from an early euro exit by Greece.

He argues most companies are well prepared on cash issues and contracts with suppliers, but less so on how they would cope with business continuity in the immediate aftermath of a euro exit.

The worst news? No more booze:

Diageo, the world’s biggest spirits group and the name behind Johnnie Walker whisky and Smirnoff vodka, has reacted by slashing its marketing spend in Greece, reducing stock levels and pulling cash quickly out of the country after it saw its Greek sales halve in the last three years to less than 100 million pounds.

Diageo has weekly meetings aimed at cutting its exposure to Greece, protecting remaining sales by bolstering its own in-house distribution network, halting supplies to some small bars and focusing on high-end hotels and clubs.

Diageo’s Chief Marketing Officer Andy Fennell says its Greek sales are still falling. The once big Johnnie Walker market has already shrunk and now accounts for less than one percent of the group’s 10 billion pound annual turnover.

“There could be a marked impact on Greece but the big question is what happens elsewhere across the eurozone,” Fennell said with an eye on Diageo’s bigger troubled markets inside the eurozone such as Spain and Ireland.

The best news: new drachma will be well stocked and easily available:

De La Rue, which as the world’s biggest commercial banknote printer produces more than 150 currencies, has made no comment. Analysts say Greece could have to turn to outside printers because of the sheer quantity of banknotes needed.

Of course, if after reading this any Greeks are still not utterly terrified of what their vote for Syriza would bring (nothing but Keynesian fire and brimstone), very soon precogs will be released to arrest any and all who dare to vote for ending a disastrous monetary experiment which will eventually unleash what happened in Miami over the weekend, worldwide.

As the financial collapse approaches, should you go all-in on gold and silver?

J. D. Heyes
Natural News
May 29, 2012

U.S. debt is spiraling out of control. The Treasury Department’s printing presses are cranking out hundreds of billions in new money. The U.S. dollar is weak. The stock market is volatile. European countries are imploding financially and the entire European Union is at risk of collapse. The Middle East is an even worse tinderbox than normal, due to all the “Arab Spring” unrest.

Should you put all of your assets – your hard currency, your 401K, your stock portfolio – into gold and silver now, before it’s “too late?” Capital market specialist and entrepreneur Peter Pham thinks so.

Since 2008, when theGreat Recessionbegan in the U.S., gold and silver prices have hit the stratosphere. On Oct. 30 of that year, gold closed at $737.20 an ounce; silver closed at $9.785 an ounce. Today, gold and silver respectively are around $1,550 and $28 an ounce. Gold has more than doubled in value; silver has performed better, nearly tripling in value.

That’s all well and good, and there is no question that people who got into the gold and silver markets early-on have done well with their investment. But what about from this point on? What does the future hold for gold and, to a lesser extent, silver?

That’s never an easy question to answer – predicting the future value of something. But there are signs that could at least point you in the right direction.

Historically valuable and a hedge against bad times

First, gold and silver had historically heldsomevalue, especially as economic times get tough.

Secondly, governments today seem to beaddinggold to their currency reserves, not divesting themselves of gold.

“The latest numbers published by the World Gold Council reveal that there is a sea-change happening in the gold market,” Pham wrote in an assessment of gold and silver recently. “It’s no secret that central banks have been buying, intermittently, gold and adding to their official reserves. The first quarter numbers showed clearly that gold demand is rising in the East faster than it is in the West and this has helped push the price higher. The trend looks to be just beginning.”

Producers of a product watch their markets closely to see if demand for their product is increasing or decreasing. As Pham notes, there has been some recent “weakness” in gold and there has been some decrease in demand in certain sectors of the global economy. But overall, production is up 5 percent, and that’s largely due to acquisitions of gold by governments, especially in Asia.

And that, says Pham, is likely because those governments believe gold is presently undervalued.

Central banks around the world loading up

“In 2011, for the first time, investment demand outstripped jewelry demand by 9 tons,” Pham wrote, noting in one example that Turkey’s central bank added 79.3 tons, raising reserves to 195 tons by the end of 2011, an increase of more than 32 percent over the previous year.

“Efforts by the government to bring some of that private gold into the banking system have seen their reserves rise to 209.6 tons by May, representing more than 12 percent of Turkey’s reserves. Clearly both the people and the government of Turkey are worried about the future,” he wrote.

That trend is growing throughout Asia, “from the Baltic with countries like Russia, Kazakhstan and Turkey all adding to their official reserves, to Southeast Asia where investment demand dominates in places like Vietnam and Thailand.”

He said central banks make these kinds of monetary moves for a variety of reasons, but in this case, he believes it is happening because “they are diversifying away from the U.S. dollar as their primary reserve currency to protect themselves from the stresses in the U.S. and European banking systems.”

‘Something fundamentally wrong’

“The gold flow data clearly shows them reacting to protect themselves,” Pham says.

There are also geopolitical factors driving the demand.

“Let’s not forget the looming U.S. and E.U. sanctions against anyone still trading with Iran, namely Iran, Turkey and Russia, who have been, by far, the biggest buyers of gold in the past fifteen months,” Pham writes.

What does it all mean? What is gold, at least, trying to tell us?

“At this point gold is telling us that the people on my side of the world believe gold to be grossly undervalued in the futures market and will continue to sit back and catch gold bars as they fall into their laps at discount prices,” he said.

“It’s also telling us that there is something fundamentally wrong with the path we’re on.”

Sources for this article include:




Greece to Leave Euro Zone on June 18: Wealth Manager

Shai Ahmed
May 28, 2012

Greece will leave the euro zone on June 18 if the populist government wins the country’s elections on the 17 as the rest of the euro zone rounds on “cheaters,” Nick Dewhirst, director at wealth management firm Integral Asset Management, told CNBC.com Monday.

“The euro zone is a club but you get cheaters who get away with it until everyone finds out and at that point you need to remove them otherwise everyone will cheat. It’s better for Greece to leave,” Dewhirst said.

He added that Greek society was built on cheating and scheming, saying “everyone does it” but that voters elsewhere in the euro zone were now calling Greece to account.

“The basic question is that a German has to increase working from 65 to 67 and that is to pay for Greeks retiring at 50. The 17th of June is the perfect opportunity to say either ‘we’ll behave’ or ‘we’ll carry on cheating,’” he said.

Full story here.

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Monday, May 28, 2012

VIDEO: Bob Chapman In Ill Health and Bilderberg 2012 News

Why America Is Slouching Towards Third World Status

Steven Strauss
Business Insider
May 28, 2012

“The best lack all conviction, while the worst
Are full of passionate intensity” –”The Second Coming”, William Butler Yeats

Yeats’ lines aptly describe our current age of political mediocrity. As we consider our politicians, we can hardly say that they’re our best. And the worst of them are full of passionate intensity, with passions driven by ideology, rather than fact-based analysis.

The United States has been in decline relative to other countries for the last 30 years. On key metrics, we’ve fallen behind our peer group of industrialized countries, such as the UK, France, Germany, and Japan.

Am I exaggerating? Well, according to the Corruption Perception Index, we rank 24th in the world (only slightly better than Qatar) for public sector corruption. We rank 25th (way behind our peer group) in the OECD for math scores among 15-year-olds.

Over the past 30 years, our national debt has grown from about 30 percent of GDP to about 100 percent, and will become much worse based on current trends. In a recent survey of 10,000 Harvard Business School Alumni, “66 percent of respondents see the U.S. falling behind emerging economies.” It is difficult to find many encouraging metrics.

If the above statistics don’t convince you, visit the New Delhi International Airport, then compare it with our JFK or Newark International Airports. In many areas, our infrastructure is an embarrassment, already inferior to that of many third world countries.

These facts (and many others) have escaped Romney, Santorum and our current group of Republican leaders. Obama and the Democrats aren’t doing significantly better at confronting these challenges.

Full article here

Hundreds of words to avoid using online if you don’t want the government spying on you

UK Daily Mail
May 26, 2012

The Department of Homeland Security has been forced to release a list of keywords and phrases it uses to monitor social networking sites and online media for signs of terrorist or other threats against the U.S.

The intriguing the list includes obvious choices such as ‘attack’, ‘Al Qaeda’, ‘terrorism’ and ‘dirty bomb’ alongside dozens of seemingly innocent words like ‘pork’, ‘cloud’, ‘team’ and ‘Mexico’.

Released under a freedom of information request, the information sheds new light on how government analysts are instructed to patrol the internet searching for domestic and external threats.

The words are included in the department’s 2011 Analyst’s Desktop Binder‘ used by workers at their National Operations Center which instructs workers to identify ‘media reports that reflect adversely on DHS and response activities’.

Department chiefs were forced to release the manual following a House hearing over documents obtained through a Freedom of Information Act lawsuit which revealed how analysts monitor social networks and media organisations for comments that ‘reflect adversely’ on the government.

Full article here

Lloyd’s of London preparing for euro collapse

Andrew Cave
London Telegraph
May 28, 2012

Richard Ward said the London market had put in place a contingency plan to switch euro underwriting to multi-currency settlement if Greece abandoned the euro.

In an interview with The Sunday Telegraph he also revealed that Lloyd’s could have to take writedowns on its £58.9bn investment portfolio if the eurozone collapses.

Europe accounts for 18pc of Lloyd’s £23.5bn of gross written premiums, mostly in France, Germany, Spain and Italy. The market also has a fledgling operation in Poland.

Lloyd’s move comes as a major Franco-German provider of credit insurance for eurozone trade, Euler Hermes, said it was considering reducing cover for trade with Greece because of the risk the country might leave the eurozone.

Full article here

CA CAFR shows $600 billion tax surplus, 1% criminals cover-up, demand ‘austerity’

Carl Herman
Washington’s Blog
May 28, 2012

Clint Richardson details California’s Comprehensive Annual Financial Report (CAFR) to reveal $577 billion in Californian taxpayers’ investments. This public evidence makes Governor Brown’s claim of a ~$16 billion budget deficit with no option than “austerity” a criminal lie of omission. This is similar if the governor claimed the public checking account didn’t have enough money for our children’s schools while he covered-up a savings account with over 30 times the claimed shortage.

Clint notes on page 107 of California’s CAFR that the $6 billion annual interest cost and $164 billion in state debt are also cover-ups when contrasted with taxpayers’ investments. The criminal economic fraud of the 1% expands with cover-ups of the policy options to issue its own credit and money to directly pay for public goods and services.

These facts at the state level in California are repeated by the two main political parties’ “leadership” in all states (explore here). They also reveal the US national debt as similar criminal fraud. Here are three simple points to explain:

  1. The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
  2. The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt that can never be repaid. It can’t be repaid because this is what we use for money. The US national debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest payment is ~$8,000 every year).
  3. Monetary reform creates debt-free money that extinguishes the debt (details here), and allows government to become employer of last resort for infrastructure investment (hard and soft). This creates full-employment, optimal infrastructure, and falling prices because infrastructurehistorically creates more value to the economy than cost. Credit reform allows for public loans (interest directly pays for public goods/services) as another monetary tool for stable money supply (credit reform details here).

I understand that most Americans find these facts difficult to embrace. My personal experience working with both parties’ “leadership” for 18 years and two UN Summits where they rejected ending poverty, even when it produces a profit with Microcredit, revealed the 1%’s character.

The solution to the 99%’s looted trillions is as old as law and justice itself: arrest the criminals, disclose the comprehensive facts, rebuild in good faith for policy in the public good.

Until the 99% demand arrests and justice, the 1% will continue to loot, lie, and demand we accept austerity on our knees.

It’s our assets. What will you think, say, and do to reclaim them? Until we collectively act, the 1% psychopathically rules us to kiss our own assets goodbye.

VIDEO: Orwellian Carbon Tax Fines Hit Australians And Fear of Bank Runs in U.S. Hit All Time Highs

VIDEO: Agenda 21's Globalist Death Plan for Humanity

Friday, May 25, 2012

The NATO/UN Army: Perpetual War … and Bankruptcy for U.S.

William F. Jasper
New American
May 25, 2012

Pretending to have achieved some kind of victory in Afghanistan, President Obama and the NATO leaders have pushed ahead on the globalist agenda to transform NATO more fully into the global military arm of the United Nations.

“We’re now unified behind a plan to responsibly wind down the war in Afghanistan,” declared President Obama, at the conclusion of the May 20-21 NATO Summit in Chicago.

But don’t pop the champagne corks just yet; America’s longest war, now over a decade in duration, is not ending any time soon. What does “responsibly wind down the war” mean? According to President Obama and the other NATO leaders, it means NATO “combat troops” will have left Afghanistan by the end of 2014. Which is another way of spinning the grim fact that they intend to keep NATO forces (primarily U.S. forces) fighting in Afghanistan for another two-and-a-half years. And after 2014, an unspecified number of NATO/US forces will remain for “training” purposes for an indefinite period.

The Afghanistan War, which has already cost half a trillion dollars (and over 12,000 American casualties), has succeeded in establishing Hamid Karzai and his clan in a ruling regime that is universally recognized as thoroughly corrupt and anti-American. It is also a regime without popular support that is sure to collapse after our withdrawal — if not before. And when the country breaks down into a bloody civil war? Well, in order to prevent that, President Obama says someone must come up with $4.1 billion per year to finance the equipping and training of the Afghan army and police force.

The Washington Post reported:

The United States spent $12 billion last year, 95 percent of the total cost, to train and equip an Afghan army and police force that is expected to total 352,000 by this fall. With a gross domestic product of about $17 billion, Afghanistan is incapable of funding a force that size.

As it looks for a way to cut future costs and assumes an eventual political solution to the war among the Afghans themselves, the administration has projected that Afghanistan’s security needs could be met even if the force were cut by up to one-third. It estimates the cost of sustaining the reduced force at about $4.1 billion a year, half of which the United States would provide. Afghanistan would pay about $500,000.

President Obama, always generous with the taxpayers’ money, offered to cover half the costs of the “transition.” However, the other NATO partners failed to put any money on the table at Chicago. France said it was pulling its troops out.

NATO, impressive on paper, with its 28 member states and an additional 22 countries in its Partnership for Peace, is totally dependent on U.S. funding and U.S. military equipment and manpower. America’s foreign policy elites, as exemplified most especially by the Council on Foreign Relations (CFR), have been laboring for decades to empower the United Nations with its own global military, one that could carry out UN mandates without having to seek ad hoc military coalitions from often-reluctant member states. For the past two decades, NATO has increasingly filled this role: in Bosnia-Herzegovina, Kosovo, Iraq, Afghanistan, the Gulf of Aden, Libya.

The one-worlders at the CFR want to go further. Anne-Marie Slaughter is a professor of Politics and International Affairs at Princeton University and a former director of policy planning in the Obama/Clinton State Department (2009-2011). Besides being a member of the CFR, she has served on its board of directors. She is one of the big guns in the CFR opinion cartel and can be counted on to push relentlessly for treaties and arrangements that will ever erode American sovereignty and increasingly subject the United States to “international law” and international institutions. In her syndicated column of May 19 (timed for the opening of the NATO Summit the next day) entitled, “Globalizing NATO,” Professor Slaughter signified that the globalist dream to arm the UN with its own military is still alive, and NATO is the vehicle to achieve it. She declared:

Even skeptics of NATO expansion and operations like the intervention in Libya now recognize that joint operations by member countries, operating under a UN mandate and in conjunction with regional partners, is likely to be a model for the future. As General Brent Scowcroft, National Security Adviser for President George H.W. Bush, observed recently, the UN Charter originally envisioned a standing military force to enforce Security Council resolutions – a vision that the NATO partner model might ultimately realize.

On May 22, Charles A. Kupchan, the CFR’s Whitney Shepardson Senior Fellow (and a Professor of International Relations at Georgetown University) wrote in his blog on the CFR web site that:

NATO’s Chicago summit went more or less according to plan. The allies agreed upon a timetable and strategy for winding down the war in Afghanistan…. And the presence at the summit of more than thirty non-NATO leaders advanced the alliance’s commitment to developing new partnerships and deepening its global engagement.

Prof. Kupchan did not expound in detail in his blog about the referenced “new partnerships” and “deepening global engagement.” However, in his recent testimony before the Senate Foreign Relations Committee, for its hearing on “NATO: Chicago and Beyond,” he asserted that “NATO should intensify and expand the numerous programs it already maintains” and initiate new ones. Here are some of the details he provided at the hearing:

Some of the most important security institutions of the 21st century are likely to be regional ones – such as the Gulf Cooperation Council, the African Union, the Association of Southeast Asia States, and the Union of South American Nations. NATO should be investing in the efficacy of these regional bodies.

In pursuit of this objective, NATO should intensify and expand the numerous programs it already maintains to advance these goals, including:

• Euro-Atlantic Partnership Council and Partnership for Peace: engages 22 European partner countries in multilateral and bilateral relations with NATO.

• Mediterranean Dialogue: engages Algeria, Egypt, Israel, Jordan, Mauritania, Morocco, and Tunisia in NATO activities.

• Istanbul Cooperation Initiative: provides training and exchanges with Bahrain, Qatar, Kuwait, and the United Arab Emirates.

• NATO Partners: engages non-NATO members in NATO operations, including Australia, Japan, South Korea, New Zealand, Pakistan, Iraq, Afghanistan, and Mongolia.

• Support for African Union: provides NATO assistance to the AU mission in Somalia and to AU peacekeeping capacity.

• Training Mission in Iraq (2004-2011): trained Iraq’s armed forces.

In similar vein, CFR Fellow James M. Goldgeier authored a Special Report for the Council in 2010 entitled, The Future of NATO (a pdf of the report can be downloaded here).

Goldgeier, who is Dean of the School of International Service at American University, regularly writes columns favoring greater empowerment of NATO and the United Nations. He has teamed up in the past with Ivo Daalder (CFR) to co-author some of these columns. Mr. Daalder now, of course, is President Obama’s U.S. Permanent Representative on the Council of NATO, a position more commonly referred to as our “NATO Ambassador.” Before assuming this post, Daalder was on the staff of Bill Clinton’s National Security Council and served as an International Affairs Fellow at the CFR.

The internationalists at the Council on Foreign Relations have been pushing for providing NATO with its own independent, permanent military assets, so that national politicians responding to war-weary voters will not be able to stifle the globalist agenda. That has been partially achieved with adoption at the Chicago summit of the “smart defense” advocated by Secretary of State Hillary Clinton.

CFR globalists like Slaughter, Scowcroft, Kupchan, Daalder and Goldgeier are deliriously happy that NATO has gone “out of area,” that is, that it no longer restricts itself to the North Atlantic (European) area it was formed, ostensibly, to protect against Soviet aggression. This is part of NATO’s “evolution,” of “reinventing itself,” of “finding a new purpose.” So where does this evolution end? Where does it take us?

Elmo Roper (CFR) explicitly spelled out the globalist vision in a 1960 speech to the Atlantic Union Committee entitled “The Goal is Government of All the World,” which was subsequently published as a pamphlet under the same title. Roper, who was then treasurer of the AUC, declared:

But the Atlantic Pact (NATO) need not be our last effort toward greater unity. It can be converted into one more sound and important step working toward world peace. It can be one of the most positive moves in the direction of One World.

Roper continued:

For it becomes clear that the first step toward world government cannot be completed until we have advanced on the four fronts: the economic, the military, the political, and the social.

Few of the one-worlders speak as candidly as Mr. Roper did in that speech. Vice President Joe Biden, however, comes close, vigorously championing the transformation of NATO’s armed might into the operational arm of the United Nations. During the Senate confirmation hearing for Warren Christopher (CFR), the nominee of President Bill Clinton (CFR) for Secretary of State, on January 13, 1993, then-Senator Biden stated:

[O]rganizing for collective security — means strengthening the U.N. by assigning to the Security Council certain predesignated

military forces and facilities: a conception unanimously endorsed by this committee last October. It also means converting NATO into a military instrument for peacekeeping, and peacemaking, under U.N. or CSCE auspices. (Emphasis added.)

Sen. Biden went on to invoke Woodrow Wilson and to endorse Wilson’s radical vision of “world order” under a League of Nations with its own global army and navy. Said Biden:

Collective security, a multinational commitment to repel aggression and defend the peace, was the central precept of Woodrow Wilson’s vision. Wilson recognized it as a principle so essential to world order that he would not yield it in the fight over the ratification of the Versailles Treaty. It is the principle that the Senate finally accepted in 1949 with the advent of NATO, though it took the carnage of the Second World War to prove Wilson right. And it is that principle we must now extend, by empowering the U.N. and transforming the Atlantic alliance.

Finally, Sen. Biden called for a Wilsonian “new world order” with “sweeping, visionary change”:

Today we stand at the threshold of this new world order. I believe the people and governments, in growing numbers worldwide, recognize what needs to be done. And I believe the American people are prepared to see the United States take the lead in engineering sweeping, visionary change.

As a Senator and as Vice President, Joe Biden has helped propel that “sweeping, visionary change” forward. He was visibly elated when NATO went “out of area” to effect regime change in Libya. “NATO got it right,” he declared. ”In this case, America spent $2 billion and didn’t lose a single life. This is more the prescription for how to deal with the world as we go forward than it has in the past.”

This “prescription” which he enthusiastically endorses (along with President Obama, Secretary Clinton, and much of the political establishment) is a prescription for endless illegal wars, fought without the constitutionally required declaration of war by Congress, that would drain America of her blood, treasure, and her liberty.

U.N. Summit Will Push for a More Powerful Global Environmental Agency

Patrick Goodenough
CNS News
May 24, 2012

Ahead of a mammoth United Nations sustainability conference in Rio de Janeiro next month, the Brazilian government has signaled a new push to get the U.N.’s top environmental body upgraded – a push long opposed by the United States.

Brazil wants to breathe new life into an initiative — vigorously promoted since the 1990s by European leaders — to replace the 40 year-old U.N. Environment Program (UNEP) with a full-fledged “specialized agency,” dubbed the U.N. Environment Organization (UNEO).

Brazilian Environment Minister Izabella Teixeira told a press briefing last Friday that the issue was a priority for her government, but she acknowledged that “there is no consensus in international organizations on the proposal to create an environment agency” during the summit, known as Rio+20.

“We are working hard looking for the best way to achieve this,” she said.

In what the U.N.’s Division for Sustainable Development says will be the biggest conference ever organized by the U.N., around 50,000 people, including some 135 heads of state and government (or deputies) will take part in the June 20-22 event.

Full article here

VIDEO: Weaponized Drones to Attack Americans

VIDEO: The Rise of The EU Commissars! Lord Monckton Reports

Thursday, May 24, 2012

Former J.P. Morgan Lobbyist Manages The Banking Committee Expected To Investigate J.P. Morgan’s Trading Loss

Lee Fang
Republic Report
May 24, 2012

The Senate Banking Committee is responding to outrage over the news that J.P. Morgan lost some $3 billion in customer money because of a risky trading strategy. The committee is preparing for two hearings with regulators, and Senator Tim Johnson (D-SD), chair of the committee, is hoping that Jamie Dimon will testify in the near future. “Our due diligence has made it clear that the Banking Committee should hear directly from JPMorgan Chase’s CEO Jamie Dimon,” Johnson said in a statement last week.

Luckily for Dimon, the professional staff in charge of managing the banking committee will be quite familiar to him and his team of lobbyists. That’s because the staff director for the Senate Banking Committee is none other than a former J.P. Morgan lobbyist, Dwight Fettig.

In 2009, Fettig was a registered lobbyist for J.P. Morgan. His disclosures show that he was hired to work on “financial services regulatory reform” and the “Restoring American Financial Stability Act of 2009″ on behalf of the investment bank. Now, as staff director for the Senate Banking Committee, he will be overseeing the hearings on J.P. Morgan’s risky proprietary trading.

On the House side of Congress, J.P. Morgan may see even less of a risk in upcoming hearings. Chairman Rep. Spencer Bachus (R-AL), who would presumably manage any investigation into the bank, has already offered comments to the press defending the investment bank’s trading decisions.

Full article here

German Press: “The Greek Exit Is A Done Deal”

Zero Hedge
May 24, 2012

Did France, Italy and Greece think they are the only ones who can float strawmen in the media? No. Once again, Germany shows us how it is done. From Tomorrow’s edition of Deutsche Wirtschafts Nachricthen: “The Greece-exit is a done deal: According to the German economic news from financial circles EU and the ECB have abandoned the motherland of democracy as a euro member.The reason is, interestingly, not in the upcoming elections – these are basically become irrelevant. The EU has finally realized that the Greeks have not met any agreements and will not continue not to meet them. A banker: “We helped with the Toika. The help of the troika was tied to conditions. Greece has fulfilled none of the conditions, and has been for months now.” So more posturing? Or is Germany truly just so sick and tired of bailing out not just Greece (which pockets between 0% and 20% of any actual bailout cash), and indirectly French banks which as of this moment are the biggest pass thru beneficiaries, and of course the ECB with its tens of billions in old par GGB holdings, that this article is, gasp, founded in reality? Is Europe approaching its own Lehman moment when everyone says “just screw it”, and let the dice fall where they may? Many said Lehman could never be allowed to fail. They were wrong. Just as many are saying that Europe will never let Greece leave as the costs to the continent are just too great. Well, judging by tonight’s epic fiasco of a Euro-summit, the last thing we would attribute to Europe’s leaders is clear and rational thought.

Full article, google translated:

The loud sounds of the left-politician Tsipras were just the straw that has brought the camel’s back. In the EU, the ECB and the IMF have been completed with the issue. Greece must get out of the euro, it is generally agreed across all sectors. The information contained in the former central banker and technocratic Prime Minister Lucas Papademos had delivered. He had enough time to convince the one hand, the full extent of the calamity, and also by the unwillingness of the parties to save money. Basically, his tenure was a fact-finding mission on behalf of the EU. His conclusion:Mission Impossible. About the consequences, there are different views: the central bankers do not want to pay more because they see that the whole is a bottomless pit. The politicians, led by Angela Merkel reluctant yet. As always there are the politicians advocate the status quo, because they fear nothing more than the unknown. And there are unknowns with a Euro exit any quantities.

It begins with the question: How does it work really practical? An outlet to see the EU treaties before any more than one eviction. For safety reasons, both the ECB and the Bundesbank formed crisis teams that are preparing now as the commanders on various contingencies. A small consolation is believed to have, because the debt incision was made, and therefore actually is a direct contamination of the banks as rather unlikely. Although this may not confirm officially Banker: The unofficial interpretation is that the risk of infection by the average debt “significantly reduced” was.

Full article here

Real federal deficit dwarfs official tally

Dennis Cauchon
Thursday, May 24, 2012

The typical American household would have paid nearly all of its income in taxes last year to balance the budget if the government used standard accounting rules to compute the deficit, a USA TODAY analysis finds.

Under those accounting practices, the government ran red ink last year equal to $42,054 per household — nearly four times the official number reported under unique rules set by Congress.

A U.S. household's median income is $49,445, the Census reports.

The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.

The deficit was $5 trillion last year under those rules. The official number was $1.3 trillion. Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, according to government actuaries, but the amount was not registered on the government's books.

Contrasting deficits

The federal government calculates the deficit in a way that makes the number smaller than if standard accounting rules were followed (in trillions).

Sources: USA TODAY research; Congressional Budget Office

Deficits are a major issue in this year's presidential campaign, but USA TODAY has calculated federal finances under accounting rules since 2004 and found no correlation between fluctuations in the deficit and which party ran Congress or the White House.

Key findings:

•Social Security had the biggest financial slide. The government would need $22.2 trillion today, set aside and earning interest, to cover benefits promised to current workers and retirees beyond what taxes will cover. That's $9.5 trillion more than was needed in 2004.

•Deficits from 2004 to 2011 would be six times the official total of $5.6 trillion reported.

•Federal debt and retiree commitments equal $561,254 per household. By contrast, an average household owes a combined $116,057 for mortgages, car loans and other debts.

"By law, the federal government can't tell the truth," says accountant Sheila Weinberg of the Chicago-based Institute for Truth in Accounting.

Jim Horney, a former Senate budget staff expert now at the liberal Center on Budget and Policy Priorities, says retirement programs should not count as part of the deficit because, unlike a business, Congress can change what it owes by cutting benefits or lifting taxes.

"It's not easy, but it can be done. Retirement programs are not legal obligations," he says.

VIDEO: Jamie Dimon’s Little Shop of Horrors! Kill The Banksters! Max Keiser Reports

45 Signs That China Is Colonizing America

Michael Snyder
The American Dream
Thursday, May 24, 2012

Just because you were once the most powerful nation on earth does not mean that you will always be the most powerful nation on earth. Every single year, hundreds of billions of dollars leaves the United States and goes to China. This enormous transfer of wealth has had a dramatic effect on both countries. In case you haven’t noticed, many of our formerly great manufacturing cities such as Detroit are rotting away while shining new factories and skyscrapers are going up all over China. If you go into any major retail store today and start turning over products, you will find that hundreds of them have been made in China and that very few of them have been made in America. As a nation, we buy far, far more from China than they buy from us. As a result, China is absolutely swimming in cash and they have been looking for things to do with all that money. One thing that China has done is loan the U.S. government over a trillion dollars and this has given the Chinese a tremendous amount of leverage over us. China has also started to buy up businesses, real estate and natural resources all over America. This kind of “economic colonization” is similar to what China has already been doing in Africa, South America and Australia. The formula is actually very simple. We send them our money and then they use it to buy us. With each passing day China’s ownership over America grows, and it is frightening to think about where all of this could end.

The following are 45 signs that China is colonizing America….

#1 It was recently announced that China’s Dalian Wanda Group has bought U.S. movie theater chain AMC Entertainment for a whopping 2.6 billion dollars. This deal represents China’s biggest corporate takeover of a U.S. firm ever.

#2 Earlier this month, the Federal Reserve announced that it has given approval for banks owned by the Chinese government to buy stakes in U.S.-owned banks.

#3 A few days ago Reuters reported that China is now able to completely bypass Wall Street and purchase U.S. debt directly from the U.S. Treasury Department.

#4 A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain. How in the world could we be so stupid?

#5 After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government. The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.

#6 A Chinese company known as “Sino-Michigan Properties LLC” has purchased 200 acres of land near the town of Milan, Michigan. The goal is to build a “China City” with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

#7 As I reported on recently, corporations controlled by the Chinese government have been rapidly buying up U.S. oil and gas deposits worth billions of dollars.

#8 Chinese investors have been gobbling up real estate all over New York City. The following is from a recent Forbes article….

According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.

#9 The Chinese are also doing huge real estate deals in cities in the middle part of the country. The following example is froman article in the Toledo Blade….

Dashing Pacific Group Ltd., which has already purchased the nearby Docks restaurant complex for $2.15 million, put its $3.8 million offer to buy the southern 69 acres at the Marina District in East Toledo back on the table for approval by Toledo City Council. Additionally, Dashing Pacific Chairman Yuan Xiaohong, in a letter signed in Hangzhou, said the firm wants a two-year option to buy the decommissioned Toledo Edison power plant property on the site.

#10 According to ABC News, major road and bridge projects all over the United States are being built by Chinese companies. Meanwhile, there are millions upon millions of blue collar American workers that cannot find jobs. The following is a brief excerpt from a recent ABC News article….

In New York there is a $400 million renovation project on the Alexander Hamilton Bridge.

In California, there is a $7.2 billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.

In Alaska, there is a proposal for a $190 million bridge project.

These projects sound like steps in the right direction, but much of the work is going to Chinese government-owned firms.

“When we subsidize jobs in China, we’re not creating any wealth in the United States,” said Scott Paul, executive director for the Alliance for American Manufacturing.

#11 The new World Trade Center tower is going to include glass that has been imported from China.

#12 The new Martin Luther King memorial on the National Mall was made in China.

#13 Check out this incredible photo which contrasts the decline of Detroit over the years with the amazing rise of Shanghai, China.

#14 A couple of years ago, a large Chinese company was considering building “a 10,000- to 30,000-acre technology zone for industry, retail centers and homes” just south of Boise, Idaho.

#15 Our trade deficit with China in 2011 was $295.5 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.

#16 In 2011, our trade deficit with China was 28 times larger than it was back in 1990 and more than 49,000 times largerthan it was back in 1985.

#17 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Today, China’s high-tech exports are more than twice the size of U.S. high-tech exports.

#18 America has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.

#19 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

#20 The U.S. spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States. Does that sound like “fair trade” to you?

#21 While we allow Chinese goods to freely flood our shores, China just keeps slapping new tariffs on American-made goods. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

#22 According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities a day closed down in the United States during 2010.

#23 The United States has lost an average of approximately 50,000 manufacturing jobs a month and more than 56,000manufacturing facilities in the United States have been shut down since China joined the World Trade Organization in 2001.

#24 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#25 Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.

#26 In 2010, China produced more than twice as many automobiles as the United States did.

#27 In 2010, China produced 627 million metric tons of steel. The United States only produced 80 million metric tons of steel.

#28 In 2010, China produced 7.3 million metric tons of cotton. The United States only produced 3.4 million metric tons of cotton.

#29 Today, China produces nearly twice as much beer as the United States does.

#30 85 percent of all artificial Christmas trees are made in China.

#31 China is now the number one producer of wind and solar power on the entire globe.

#32 Chinese solar panel production was about 50 times larger in 2010 than it was in 2005.

#33 Right now, China is producing more than three times as much coal as the United States does.

#34 China is now the number one supplier of components that are critical to the operation of U.S. defense systems.

#35 According to author Clyde Prestowitz, China’s number one export to the U.S. is computer equipment. According to an article in U.S. News & World Report, during 2010 the number one U.S. export to China was “scrap and trash”.

#36 According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.

#37 The United States had been the leading consumer of energy on the globe for about 100 years, but during the summer of 2010 China took over the number one spot.

#38 15 years ago, China was 14th in the world in published scientific research articles. But now, China is expected to pass the United States and become number one very shortly.

#39 China now awards more doctoral degrees in engineering each year than the United States does.

#40 China now possesses the fastest supercomputer on the entire planet.

#41 China now has the world’s fastest train and the world’s most extensive high-speed rail network.

#42 The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

#43 The Chinese economy is projected to be larger than the U.S. economy by 2016.

#44 One economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#45 China now holds approximately 1.17 trillion dollars of U.S. government debt. If you were alive back when Jesus was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.

In compiling the statistics above, I relied heavily on two articles that I previously authored. You can find them here and here.

Please share this list with as many people as you can. It is imperative that the American people get educated about why our economy is falling apart and about why there are so few jobs.

Thanks to the foolishness of our politicians, today American workers have to compete directly for jobs with workers on the other side of the globe where it is legal to pay slave labor wages.

Do you want your standard of living to continue to descend toward the level of a communist worker making about a dollar an hour?

Do you want tens of millions of American workers to be unemployed indefinitely as millions of good jobs continue to leave this country?

If not, you better stand up and say something while you still can.

The greatest economy the world has ever seen is falling to pieces right in front of our eyes and most Americans are dead asleep.

Is there any hope for us?

VIDEO: Bilderberg Plays King Maker

“5 Day Bank Holiday” To Prepare For Collapse of Euro

Even members of the financial elite are losing patience with the single currency

Paul Joseph Watson
Prison Planet.com
Thursday, May 24, 2012

While the global elite are still clinging to the hope that the euro single currency can survive a Greek exit that now looks inevitable, some members of the financial aristocracy have already given up on the entire eurozone altogether.

In an article for the Financial Times entitled, We must break up the failing euro, former Bilderberg attendee Sir Martin Jacomb concedes that all efforts to rescue the euro have been in vain, calling for “all 17 members to decide at once to revert to national currencies.”

Jacomb attended the 1985 Bilderberg Group meeting in New York but has not been invited back to the elitist confab since. No wonder given the fact that he is obviously an ardent skeptic of the single currency that Bilderberg hatched as far back as 1955.

Jacomb, former chairman of Canary Wharf Group, argues that a “five day bank holiday” should be imposed to allow financial markets to absorb the shock of the collapse of the euro.

“Experience shows that currency break-ups, like devaluations, have to be handled so as to avoid anticipatory speculative activity. The essential requirement is a single, unequivocal decision to revert to national currencies, reached confidentially by all 17 governments and announced without prior notice,” he writes.

As we reported last week, most of Jacomb’s contemporaries are still of the mind set that the single currency can ride the storm.

The dominant view was echoed by the Peter G. Peterson Institute for International Economics, which counts amongst its members prominent Bilderbergers such as Paul Volcker, Lawrence Summers, and David Rockefeller.

The institute’s thinking was summarized in a piece by Senior Fellow Arvind Subramanian, who argued that Greece should not be allowed to exit the single currency because if the nation were to then stage a dramatic economic recovery it would provide a path for other eurozone countries to follow, and in turn torpedo dreams of a European federalist superstate.

Bilderberg is so desperate to save the euro because it represents the entire foundation of their global financial agenda to create regional currencies and carefully-managed bureaucratic federations on the same model as the European Union.

Bilderberg-chairman √Čtienne Davignon bragged that Bilderberg helped create the euro by first introducing the policy agenda for a single currency in the early 1990′s, which was later formalized into the 1992 Maastricht Treaty.

However, the very first discussions about creating a single currency took place decades beforehand at the 1955 Bilderberg meeting in Garmisch-Partenkirchen, West Germany.

Leaked documents divulge how Bilderberg elitists discussed “The necessity to bring the German people into a common European market as quickly as possible,” adding that the future was in danger without a “United Europe”.

This agenda included “the need to achieve a common currency,” as well as the creation of a “central political authority.”


Paul Joseph Watson is the editor and writer for Prison Planet.com. 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.

Wednesday, May 23, 2012

VIDEO: The U.S. of China? The Fire Sale Of America Kicks Into Overdrive!

May 23, 2012

The People’s Bank of China is the Chinese central bank and holds more financial assets than any other single public institution in the world. The State Administration for Foreign Exchange manages the foreign exchange reserves for the Chinese central bank, which exceeds $3 trillion. To put this into perspective the next in size to China is Japan, which manages foreign exchange reserves in excess of $1 trillion. The size of Chinese reserves is disclosed but the composition of the reserves is less transparent.