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Socio-Economics & History Commentary

Mike Adams: “We are Now Under a Medical Dictatorship!”

March 25, 2010 Posted by | Medicine & Health, Social Trends | , , | 2 Comments

This Year US Public Debt Could Reach End Game !

Every new dollar in debt result in negative growth! Game over!

  • Whether it is this year or 2011, I know it is close. I don’t think based on current trend, D-day is 5-10 years away. More like within the next 3 years.
     
  • The chart above illustrates the problem America is in. No amount of debt stimulus plan will result in positive growth. Thus, what we see is an oxymoronic ’jobless growth’ recovery! The government can only manipulate economic statistics for so long. The chickens are coming home to roost. Whether the snakes like it or not, the economy need to go to a phase of debt liquidation: ie debt reduction. The current debt of over US$12T at 3% interest amounts to  US$360B in interest annually. This is 16-18% of tax revenues. When we include unfunded liabilities, the debt is easily US$100T.
     
  • With social security, Medicare and Medicaid funding in negative territory to the tune of US$29B (2010), things are definitely coming to a head! How long can this Ponzi scheme last? Not much longer! Maurizio d’Orlando opines:
     

    In 2008, the size of the debt was such that it was quite clear that it was not sustainable. Now we have a timeframe to measure the likelihood of insolvency for the US public debt, and it is this year. The reason for that is described in an article whose title needs no explanation: “The bankruptcy of the United States is now certain”.[4]
     
    The abyss of debt 
    By the end of 2010, the US Treasury will have to refinance US$ 2 trillion in short-term debt, plus additional deficit spending for this year, estimated to be around US$ 1.5 trillion (US$ 1.6 trillion today two months after the original article was published). Together, the US Treasury will need to borrow US$ 3.5 trillion (US$ 3.6 according to this writer) in just one year.
      
    In 1999, two well-known economists—Alan Greenspan and Pablo Guidotti—published a formula in an academic paper. Kept secret for a long time, it is designed to predict with precision when a country’s public debt will lead it to be insolvent. Called the Greenspan-Guidotti rule, it says that to avoid a default, countries should maintain hard currency reserves equal to at least 100 per cent of their short-term foreign debt maturities.
      
    According to the author, the United States holds 8,133.5 metric tonnes of gold (the world’s largest holder). At November 2009 dollar values, that is about U$ 300 billion.[5] The US strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that is roughly US$ 58 billion worth of oil. According to the IMF, the US has US$ 136 billion in foreign currency reserves. Altogether, that is some US$ 500 billion in reserves (US$ 455.5 billion according to AsiaNews).
      
    Foreigners hold 44 per cent of US$ two trillion short-term US debt; that is US$ 880 billion. Total domestic savings in the United States are only around US$ 600 billion annually. If the United States needs to sell US$ 3.5 trillion (or US$ 3.6 trillion) in Treasury bills, and all domestic savings combined are put into US Treasury debt, the United States will still fall short by nearly US$ 3 trillion. Where is the rest of the money going to come from?
     
    China’s gold 
    Not China, nor India or any other Asian countries. Last year, China has in fact proportionately reduced its holdings in US Treasury bills in relation to rest of its reserves.
      
    Recently, the International Monetary Fund (IMF) put up 191.3 tonnes of gold for sale. Some analysts had earlier suggested that China might be interested in buying it. Assets in dollars are estimated to represent over 70 per cent of China’s US$ 2.4 trillion foreign exchange reserves. As of April 2009, China held 1,054 tonnes of gold or 1.2 per cent of its GDP. That falls well below the world average. Indeed, gold represents less than 10 per cent of China’s total reserves.
      
    According to the China Daily[6], a semi-official mouthpiece for the Communist Party of China, China is not likely to buy IMF gold because it might upset the market. However, some Chinese commentators believe that Beijing should increase its gold reserves to 1,800. Sources told AsiaNews that China’s real goal is 4,000 tonnes.
      
    The same is true for other Asian countries. For instance, India, Mauritius and Sri Lanka have bought 212 tonnes sold by the IMF. 
    As for Japan, it is likely to continue avoiding open confrontation with the United States; but the real intentions of its top financial circles might be inferred from a mysterious and unsolved incident that occurred last summer when two officials from Japan’s central bank were caught at the Italian-Swiss border town of Chiasso carrying US Treasury bills with a nominal value of US$ 134.5 billion.
       
    Since 1945, the US dollar has been the main international reserve currency. In theory, this gave the US Federal Reserve the power to issue debt securities at will, with the value of international trading assets. However, the Greenspan-Guidotti rule restricts this power.
     
    Whenever US insolvency becomes self-evident, no one dare say they did not know. The Greenspan who came up with the aforementioned formula is the same Alan Greenspan who chaired the Federal Reserve for 18 years and allowed speculative. i.e. “structured” finance to expand (based on poorly tested mathematical algorithms).
      
    This is the same Greenspan who in 1977 wrote a prophetic PhD dissertation (which was removed from his university at his request in 1987, when he became Fed chairman) on how financial bubbles develop in real estate and then burst. Not only was Greenspan aware of it, but so were US top financial circles. In other periods of history, this could lead to accusations of “treason”, but today our sense of personal and collective responsibility is more faded and faint than before. Alternatively, perhaps, there is a level of ultimate responsibility that is darker and runs deeper that the guilt of any one individual.[7]

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March 25, 2010 Posted by | Economics | , , , , , , , , , , , | 5 Comments

U.S. Is Riskier Than Euro Zone; So Says CDS Market !

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March 25, 2010 Posted by | Economics | , , , , , , , , , , , , , | 6 Comments

The US’ Choreographed “Outrage” At Israel !

  • This is the same O same O games and propaganda the snakes play. Nothing will change. American politicians pretend to be concerned about the plight of the Palestinians and feign outrage at Israel. Zionist Israel pretend to be alarmed. All these are just a show for public consumption. Nothing has changed and Israel will continue with its numerous inhumane acts against the Palestinians it has done so for the past 60+ years.
     
  • Behind all these machinations is the shadow government executing their New World Order plan. Keep in mind that the plot has always been a One World Government, One World Bank and One World Luciferian religion centred in Jerusalem. The Man of Sin, Anti-Christ, son of Satan will be enthroned in the temple of God as the ultimate insult to God! Stephen Maher writes:
     
    The speeches at AIPAC, the pro-Israel lobby group, on Monday by Israeli Prime Minister Benjamin Netanyahu and US Secretary of State Hillary Clinton and Netanyahu’s subsequent meeting with US President Barack Obama are widely seen as drawing to a close what Israeli ambassador to the US Michael Oren called the “most severe crisis in US-Israel relations” in decades. This rapprochement comes on the heels of a series of seemingly angry statements top members of the Obama Administration released, after Israel announced construction of 1,600 new illegal housing units in occupied East Jerusalem while US Vice President Joe Biden was in the country.
     
    In fact, the basis for the Obama Administration’s criticisms of the settlement announcement — as well as the significance of the crisis itself — has been widely misconstrued by both supporters and critics of Israel. AIPAC and the Anti-Defamation League (ADL) were “shocked and stunned” that Biden and Clinton called the Israeli announcement “insulting.” AIPAC urged the administration to “take immediate steps to defuse the tension with the Jewish state” and “move away from public demands and unilateral deadlines directed at Israel.” Meanwhile, the ADL mused, “One can only wonder how far the US is prepared go in distancing itself from Israel.” 
      …..
    Contrary to both of these positions, the Obama Administration merely reacted to a diplomatic affront it was dealt by the Israeli government. Israel’s announcement came on the same day that Biden had arrived in the country to proudly confirm the US’ “absolute, total and unvarnished” commitment to its ally, and commence indirect talks with the Palestinians.
    ….
    Clinton said the timing of the announcement was “insulting,” while top aide David Axelrod called it an “affront” that “seemed calculated” to undermine the peace talks. The Obama Administration hopes that this PR display will allow the US to fortify its farcical claim to be an “honest broker” in the peace process, provide Abbas the political cover to re-enter negotiations, and send a message to the Israeli government that American leaders are to be treated with respect. As CNN reported, Netanyahu has now set up a team to investigate why the settlement construction announcement was made during Biden’s visit.
     
    Netanyahu may well have been telling the truth when he claimed to be “surprised” by the public criticisms by the US government. The day before, one day after US envoy George Mitchell arrived to broker newly-announced “proximity talks,” the State Department explicitly approved Israel’s construction of 112 new apartments in an illegal settlement outside Bethlehem. The assent came despite Netanyahu’s declaration of a “moratorium” on settlement building, which he has insisted cannot include such illegal construction in Israeli-occupied East Jerusalem, a position the US has accepted. 
        …..
    Yet even when the administration was at its most critical of Israel, following Obama’s speech in Cairo last year, Israel was reassured that the actions taken by the US would be “largely symbolic.” Indeed, Obama unconditionally re-authorized the loan guarantees program and massive US aid — conservatively estimated at $7 million per day — has continued without threat of reduction.Obviously, the Obama Administration is hardly concerned about Israeli violations of international law, previous agreements it has signed, or the human rights of the Palestinians. The implication throughout is that had the announcement come a week before Biden visited (or even a day before, as the Bethlehem announcement did) there would have been no problem. Indeed, just one week later, after the Israeli government announced construction on an additional 426 East Jerusalem settlement homes, Clinton “bolstered her support for the Jewish state,” according to The Washington Post. The Israeli army then opened fire on peaceful protestors in Gaza twice in two days, and carried out air strikes on targets in Gaza, while Clinton issued another statement saying that the steps offered by the Israeli government to resolve the dispute were “useful and productive.”
     
    The escalating repression continued Sunday, when the Israeli army shot and killed four Palestinian youths in 24 hours in the West Bank, two aged 18 and two 16. Simultaneously, Netanyahu issued a statement proclaiming that Israel would never cease building illegally in East Jerusalem as Ban Ki-moon arrived in Israel. Clearly, recent condemnations of these projects as “illegal” by Ban and the European Union did not stop Obama from welcoming Netanyahu to Washington on Monday with a private meeting, nor Clinton from proudly sharing the stage with him at the AIPAC conference to reaffirm the US commitment to support Israel’s rejection of the international consensus for resolving the conflict. Though she did say the settlements “undermine mutual trust,” she did not acknowledge their illegality and mostly stressed the threat that US support for them poses to its “credibility” as an “honest broker,” thus urging Israel to refrain from such flagrantly provocative behavior while reinforcing that the US-Israel relationship is “rock solid.”
     
    The US hopes that this pretended outrage will lend its role as “honest broker” enough credibility to keep the “peace process” moving, itself merely a PR facade that shields Israeli crimes from public scrutiny. If it does not, the US will undoubtedly pay little mind to the harsh words spoken this week and do as it has done before: blame the Palestinians for its failure and support Israeli repression.
     
    Stephen Maher is an MA candidate at American University School of International Service who has lived in the West Bank, and is currently writing his masters’ thesis, “The New Nakba: Oslo and the End of Palestine,” on the Israel-Palestine conflict. His work has been appeared in Extra!, ZNet and other publications. His blog is www.rationalmanifesto.blogspot.com.   

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March 25, 2010 Posted by | EndTimes, GeoPolitics | , , , , , | 1 Comment

9/11 Clues Everyone Missed!

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March 25, 2010 Posted by | GeoPolitics, History | , , , , , | 6 Comments

   

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