- Chavez is not as loony as people think. His main ‘fault’ is that he is anti-west and anti-American. But he does have good reason to be after numerous attempts on his life. The western MSM never paint him in a positive light. He is unfairly treated by the biased press. In this instance, he is correct IMO in asserting that it was a tectonic weapon that triggered the earthquake. However, I do not think it was a test.
- Isn’t it wonderful that SouthCom has already been preparing for a humanitarian disaster in Haiti for some time. Their timing is impeccable. One day after the earthquake strikes, they are able to turn on their online disaster relief network. Am I really paranoid in suspecting that Haiti earthquake was a man-made attack using Tesla ELF longitudinal wave weapon? It is entirely possible that I am totally wrong. But you need to be totally blind to think that it is impossible!
A Haiti Disaster Relief Scenario Was Envisaged by the US Military One Day Before the Earthquake
A Haiti disaster relief scenario had been envisaged at the headquarters of US Southern Command SOUTHCOM in Miami one day prior to the earthquake. The holding of pre-disaster simulations pertained to the impacts of a hurricane in Haiti. They were held on January 10. (Bob Brewin, Defense launches online system to coordinate Haiti relief efforts (1/15/10) — GovExec.com, complete text of article is contained in Annex)
The Defense Information Systems Agency (DISA), which is under the jurisdiction of the Department of Defense (DoD), was involved in organizing these scenarios on behalf of US Southern Command.(SOUTHCOM). Defined as a “Combat Support Agency”, DISA has a mandate to provide IT and telecommunications, systems, logistics services in support of the US military. (See DISA website: Defense Information Systems Agency).
On the day prior to the earthquake, “on Monday [January 11, 2010], Jean Demay, DISA’s technical manager for the agency’s Transnational Information Sharing Cooperation project, happened to be at the headquarters of the U.S. Southern Command in Miami preparing for a test of the system in a scenario that involved providing relief to Haiti in the wake of a hurricane.” (Bob Brewin, op cit, emphasis added)
- See also:
American Paratroopers Land In Haiti: And on the Eighth Day…
Haiti Earthquake: US Ships Blockade Coast to Thwart Exodus to America
HAARP: The Earthquake Weapon? Weather Modification Using HAARP.
America’s Role in Haiti: Sabotage of Relief Efforts?
Haiti: Military Takeover Or Humanitarian Mission?
Doctors Without Borders: Haiti Aid Planes Refused Landings! France Accuses US of ‘Occupying’ Haiti !
The Militarization of Emergency Aid to Haiti: Is it a Humanitarian Operation or an Invasion?
Weather Warfare: Beware the US military’s experiments with climatic warfare.‘Climatic warfare’ has been excluded from the agenda on climate change.
Beneath the Debate on Climate Change: Weather Warfare and the Manipulation of Climate for Military Use
Environmental Warfare and Climate Change: The World’s climate can be modified by a new generation of sophisticated electromagnetic weapons
Excluded from the Copenhagen Agenda: Environmental Modification Techniques (ENMOD) and Climate Change. The manipulation of climate for military use
- China, Russia, Japan and the petrodollar countries do not want a sharp slide in the USD. A sudden 30% devaluation of the USD will cause these countries, and many others, to lose alot of money. Keep in mind, China alone has US$2+T in USD denominated reserves. Japan holds as much as US$600B in American treasuries. However, these countries have largely concluded that the USD is toast. They are actively diversifying out of it before the inevitable collapse comes! FT reports:
Russia’s central bank announced on Wednesday that it had started buying Canadian dollars and securities in a bid to diversify its foreign exchange reserves. Analysts said the move could be a sign of increased diversification of emerging market central bank assets away from the dollar and into investments denominated in other commodity-linked currencies, such as the Australian dollar.
Adam Cole at RBC Capital Markets said if taken in isolation, Russia’s announcement that it was buying Canadian dollars was not significant, but if it was part of a broader trend, then it was an important step. “If it is a barometer for the activity of other central banks, then its is structurally positive for the currencies of countries like Canada and Australia that have a commodity bias in their economies,” he said.
Although not officially confirmed, traders said that other emerging market central banks, including some in Asia which hold large foreign exchange reserves, have also been active in the foreign exchange market in recent weeks buying both Canadian dollars and Australian dollars. Alexei Ulyukayev, first deputy chairman of Russia’s central bank, said that it would invest in Canadian dollar-denominated deposits and bonds.
“The Canadian financial market is not very deep, so we can invest in deposits in significant volumes, while the bond market is limited,” he said. Although the central bank did not specify how much of its reserves it was allocating to assets denominated in the Canadian dollar, analysts estimated that the central bank could put up to $9bn, or 2 per cent, of its foreign exchange reserves into the currency.
Russia’s foreign exchange reserves, the world’s third largest, stood at $439bn at the end of December. These stockpiles have grown by 14 per cent since the start of the rally on global asset markets in March as rising commodity prices have boosted mineral-rich Russia’s coffers. Ahead of Wednesday’s announcement, Russia’s foreign exchange reserves were evenly split between dollar and euros.
Alarmed at the plummeting value of the dollars in its holdings, Russia has been at the vanguard of countries calling for the US authorities to stem the fall of its currency. Last year, along with China, Russia urged the creation of a new supra-national currency to replace the dollar as the world’s reserve currency.
The dollar has fallen more than 12 per cent on a trade-weighted basis since March. Commodity-linked currencies have rallied strongly, however, with the Canadian dollar up 24 per cent against the US dollar over that period and the Australian dollar 40 per cent higher.
This has prompted Russia to diversify its holdings. Indeed, in addition to its plans to buy Canadian dollars, Sergei Ignatiev, chairman of the Russia’s central bank, said last month that its was “discussing the possibility” of buying Australian dollars.
- Could Greece bring the Eurozone to its knees? Not likely. Greece’s GDP is under 3% of the Eurozone. Yes, it is a problem but not intractable. At issue really is that of perception. The worry is that Greece’s default will be the first domino to fall in a cascade of defaults among the PIIGS nations (Portugal, Ireland, Italy, Greece and Spain).
- The current obsession in the MSM over Greece is hiding the greater problem of a US default. California is well over 12% of America’s US$13T economy. As many as 46 out of 50 states are bankrupt. Illinois is the talk of today. See: Illinois enters a state of insolvency: ‘We’re close to de facto bankruptcy, if not de jure bankruptcy.’ . What is happening in Illinois is being replicated throughout the USA.
- The current strength in the USD should be seen more as a weakness of the Euro (EUD) and the UKP (UK Sterling). If you think jumping from the pot to the fire is a sound strategy, think again! The USD is essentially toilet paper. The FedRes seems to be monetizing more debts than they are letting on. The figures don’t add up. See: The Ultimate Shell Game: The Federal Reserve Funds 91% Of 2009 U.S. Deficit! Money Morning reports on the Greek situation:
Don Miller writes: As the European Commission holds its regular monthly meeting in Brussels this week, ministers find themselves debating what to do about the Greek debt crisis — the biggest credibility test the Eurozone has faced since the single currency was created.
The question is whether the 16 countries that share the European Union’s (EU) currency can force a rogue member with a weak economy to take drastic measures to cut its budget deficit without calling in the International Monetary Fund (IMF) or sparking social unrest. Still in the depths of recession, Greece is plagued by a spending deficit that rose to 12.7% of gross domestic product (GDP) last year, far in excess of the 3% ceiling permitted to countries in the union. It’s also saddled with debt amounting to 113% of GDP, which prompted Moody’s Corp. (NYSE: MCO) to downgrade its debt to A2 from A1 on December 22.
The credit ratings agency also changed its outlook on Greece to negative, saying the Greek government’s long-term credit strength was “eroding materially.” The deterioration of public finances also cost Spain and Ireland their top ratings last year. That was followed by a run on Greek government bonds by traders who doubt that the country will be able to unload their bad bonds on the EU, sending yields over 6% — about twice what Germany pays. The cost of insuring against losses on Greek government bonds last week rose to a record of 344.5, according to CMA DataVision prices.
Further downgrades by credit ratings agencies would mean Greek government bonds will no longer qualify as collateral to borrow cheap European Central Bank (ECB) funds starting in 2011. That would raise government borrowing costs, cripple hard-hit Greek banks and also hurt other holders of Greek debt.
Across Europe, there is concern that serious fiscal problems in Greece could threaten the credibility of the Eurozone and set off similar debt crises in other weak European economies. “The Greece example is putting us under great, great pressures,” German Chancellor Angela Merkel told AFP. “The euro is in a very difficult phase for the coming years.”
Fiscal Discipline on Shaky Ground
Like any other major currency, support for the euro relies on fiscal responsibility. But, unlike any other major currency, the euro is issued by 16 autonomous countries largely beyond the reach of European Union rules. In other words, if any individual member such as Greece wants to run up debts that threaten its credit rating, Eurozone members have very little recourse.
“Who is supposed to tell the Greek parliament that it needs to carry out pension reform?” Merkel said at a recent meeting, according to The Wall Street Journal. During this week’s meetings, Greece’s Prime Minister George Papaconstantinou will brief his counterparts on his plans to cut the country’s giant deficit. The three-year budget plan includes more than $14.4 billion (10 billion euros) in deficit-reduction measures for this year, and promises to bring the deficit down to the EU’s 3% ceiling by 2012.
But financial markets and many EU officials don’t believe he can achieve that based on the budget plans that have been announced so far and are pressuring Athens to make deeper spending cuts. Papaconstantinou is afraid of the potential for social unrest if Greece were to issue huge cuts at once, a source close to Papandreou, who spoke on condition of anonymity, told Reuters.
“We’re going to have to salami-slice our way into it,” the source said. “The EU pressure is helpful to provide an alibi for the next round of measures, because everyone in Greece realizes that the EU is our lifeline.”
Unless Athens takes swift action to slash spending and raise revenue, it risks costly EU sanctions and further downgrades by credit ratings agencies that would sharply raise its borrowing costs and deepen its economic recession.
EU Has Few Options
The Greek government will submit a new three-year fiscal plan to the European Commission this month and EU finance ministers could issue an ultimatum in mid-February giving Greece four months to take corrective action or face sanctions. One solution to resolve the whole issue would be to revoke Greece’s EU membership.
But such a drastic measure could put the euro itself at risk and was quickly ruled out by ECB President Jean-Claude Trichet, who called the notion “absurd” when he was questioned on the matter last week.
However, Trichet also said that the ECB wouldn’t be rushing to Greece’s aid with any “special treatment.”
That’s not surprising since the central bank would undoubtedly come under pressure to offer similar bailouts to other debt-ridden members such as Italy, Portugal, Spain and Ireland, which have already been forced to swallow tough spending cuts to reduce their deficits.
The anti-bailout stance was reiterated last week when ECB executive board member Juergen Stark, a German deficit hawk, bluntly stated that markets were deluded if they thought other member countries would reach for their wallets to save Greece.
If the excessive deficit remains uncorrected, the EU could also punish Greece by forcing it to make a huge, nonrefundable deposit with the European Commission. But that would only reduce market confidence and multiply Greece’s economic troubles. Neither kicking Greece out of the EU or a fine makes economic sense. But letting Greece flaunt the rules could do irreparable harm to the credibility of the euro as a sustainable currency.
Olli Rehn, the newly installed European commissioner for economic and monetary affairs, expressed fears of a potential “spillover effect for the entire euro area” during his European parliamentary confirmation hearing. The whole Greek issue also underscores the Eurozone’s generally tepid recovery from the recent global recession.
Even the notion that Greece could default on its debt is not out of the realm of possibility.
But Citigroup Inc.’s (NYSE: C) Global Markets analysts said that although political pressure from the European Union “will likely remain high…we reckon that the probability of a Greek default remains very small.” Former IMF and Wall Street analyst Desmond Lachman, however, was much more pessimistic when he raised the idea of Greece defaulting in a piece for Financial Times last week.
“Much like Argentina a decade ago, Greece is approaching the final stages of its currency arrangement,” he predicted, adding that “after much official money is thrown its way, Greece’s euro membership will end with a bang.”