- This bill gives the FedRes unbridled power to oversee all financial transactions and all corporations effectively (not just banks)! The Synagogue of Satan banksters are making their moves! This is the rise of the Mystery Babylon Whore of Revelation 17.
- The sovereign bond market is quaking. The stock market is also quaking. The Euro is being hammered. These are all precursors to the big one coming within a year! The financial tsunami to end all tsunami! A ginormous economic, financial and monetary global meltdown. Mike Larson writes:
What does the end of the bond market world look like? Something like this …(see chart at top of post)… The chart above shows the yield on the benchmark 2-year note in Greece. Just a few short months ago, Greek sovereign yields were hovering around 2.1 percent. On Wednesday, they shot up as high as 18.9 percent!
Translation? The cost of borrowing for the Greek government — not some subprime mortgage customer or deadbeat credit card holder — shot up almost NINE-FOLD in the span of six months. During this same time, the price of Greece’s 6 percent 10-year notes due July 19, 2019 plunged from 112.4 to 68.1. That’s a loss of more than 39 percent. Not on some dot-bomb stock … not even on a high-yield, or “junk” piece of paper … … but on a sovereign government bond!
Folks, THAT is bond market Armageddon. And it’s playing out now. Right on the trading screen of every investor around the world.
Think Greece Is Alone? Think Again!
Worse, the pain isn’t confined to Greece …
Portugal’s benchmark 2-year note yield just blew out to 4.82 percent from 1.58 percent. That’s a tripling in interest rates in less than a month. Ireland? Its 2-year yield rocketed to 3.83 percent from 1.62 percent in 23 days. Even bigger European economies, like Spain, are getting whacked. Yields there recently shot up to 2.08 percent from 1.36 percent.
Standard & Poor’s has taken the hatchet to its sovereign debt ratings in response. The agency cut its Spanish debt rating to AA just a day after slashing its Portuguese debt rating by two notches to A-. It also cut its Greek debt rating by three notches to BB+, “junk” territory. Bottom line: A virulent sovereign debt contagion is spreading like wildfire throughout the euro zone. In the short run, that will likely get the Germans to back down on their bailout opposition.
They’ve been holding up a package that would give Greece up to $60 billion in aid from richer European Union nations and the International Monetary Fund. The crisis may temporarily take a breather if the package gets approved. But here’s the thing: If the Greeks get bailed out, who’s next? And where the heck is all the bailout money going to come from? Policymakers may need to cough up almost $800 billion to “save” everyone, according to economists at firms such as Goldman Sachs and JPMorgan Chase.
The problem is that nobody has that kind of money laying around! So it’ll have to be borrowed. And if it has to be borrowed … from a European bond market that’s already falling apart at the seams … what’s likely to happen? Even more selling, which would drive bond prices down and interest rates up!
Coming Soon to a Bond Market Near You: Financial “Ebola!”
So far, this is predominately a problem for continental Europe. Our Treasury prices actually rose a bit during the worst of the European debt selling. But I believe it is woefully ignorant, provincial, and arrogant for us to assume something similar can’t or won’t happen here.
Even the Secretary General of the Organization for Economic Cooperation and Development likened the crisis to the “Ebola” virus, saying “it’s threatening the stability of the financial system.” When you think it through logically, you can’t help but ask: Why wouldn’t the Grim Reaper eventually come knocking at OUR door?
After all, OUR deficits are out of control! OUR debt level is through the roof! OUR politicians are burying their heads in the sand, just assuming they’ll be able to keep funding their profligacy at rock-bottom rates forever. Those are precisely the same problems that built up in Greece for months on end. Then one day, the lid blew! Think about it:
- Our total debt load is set to double to $18.6 trillion over the next decade,
- Weekly benchmark Treasury auctions have surged from $20 billion to $30 billion to more than $120 billion,
- And we’re dumping more than $375,000 in debt onto the market every second in some weeks, all in an effort to fund a budget deficit that’s closing in on $1.6 trillion!
Do I expect a nine-fold rise in U.S. 2-year note yields? A 40 percent plunge in bond prices in just a couple of months? Not really. But I do believe the bond market will force us to take our fiscal medicine. I do believe a sovereign debt crisis is brewing here. And I do believe it will be just one reason our interest rates will head significantly higher. So please, invest and prepare accordingly. By the time the bond market bleeding starts, it’ll be too late.
- This does not look good. The South Koreans have behaved in a measured and very rational manner, not wanting to escalate the problem unnecessarily. Now that the facts are out: it was an obvious attack! All fingers are pointing at North Korea. If South Korea does not respond, they will look like wimps. The families of the dead sailors will definitely want justice. But what appropriate measure can you take that will not result in nuclear war? North Korea presumably has nuclear warheads. President Lee has a tough job. If he talks too much he may paint himself into a corner and trigger another Korean war.
- This may be another false flag operation by the Illuminati, to position for a nuclear conflict with China. The encirclement of China is real: Okinawa Japan towards the east, South Korea in the southeast, Philippines in the south and possibly India in the southwest. Iran and North Korea are the hotbeds this year.
Lee: Warship sinking was no ‘simple accident’
SEOUL, South Korea — President Lee Myung-bak ordered a thorough review of South Korea’s military readiness Tuesday, calling the sinking of a warship no “simple accident” as officials inched closer to blaming North Korea in the deadly incident. Lee did not directly name wartime rival North Korea as a suspect in the March 26 disaster as he opened a historic meeting of top military commanders at the Defense Ministry. However, he made it clear for the first time that he considers the sinking of the Cheonan following an explosion in disputed waters near the Koreas’ maritime border to be an incident linked to North Korea. The president also called North Korea “the most belligerent forces” in the world.
“What is obvious so far is that the Cheonan did not sink due to a simple accident,” he said. “As soon as the incident occurred, I sensed it was a grave international and inter-Korean matter.” The 1,200-ton Cheonan sank in the Yellow Sea after an explosion blew the frigate apart. Fifty-eight sailors were rescued, but 46 were killed. Defense Minister Kim Tae-young has said after an initial investigation that a torpedo appears the likely culprit.
Seoul has never directly blamed North Korea for the sinking, and Pyongyang has denied involvement. However, suspicion has focused on the North, given its history of provocations and attacks. The two Koreas remain technically locked in a state of war because their three-year conflict ended in a truce, not a peace treaty, in 1953. North Korea disputes the U.N.-drawn maritime border off the west coast, and the two navies have fought three bloody sea battles in the waters.
Lee said he immediately ordered a joint international investigation after the incident and said he expected the results soon. “After we find the cause, I will take definite, stern” action against those responsible, he said in a nationally televised speech. He said there must be no delay in ensuring the country’s security, and ordered a “full-fledged” review of South Korea’s military readiness. Lee told the generals that South Korea’s security readiness has been “lax” and the people have also been living without realizing that forward-deployed artillery of “the most belligerent forces are aiming at us.”
“The Cheonan incident reminded us about that,” Lee said. He said the North’s artillery are deployed only 30 miles (50 kilometers) away from Seoul. Lee also said he would establish a presidential task force on national security and appoint a special security adviser. It was the first time the president was chairing the twice-a-year defense strategy session.
Obama’s Threat to Launch a Nuclear Attack on Iran! US Threatens to Nuke Iran and Anyone Else it Feels like Nuking!
- The rhetoric is being ratcheted up. War is near. This is a repeat of the period before the Iraq invasion. All the propaganda, mis-information, dis-information and outright lies. Cui Bono? Zionist Israel. The western MSM is demonizing Iran big time. They are also demonizing patriots, tea parties, Alex Jones, veterans…etc. This is all in preparation for a false flag (nuclear?) attack. The finger will be pointed very quickly at Muslim terrorists, patriots, tea parties, domestic terror cells working with Taliban/Al Qaeda …. etc.
- For their propaganda and mind control to be effective, their psyop need to go into live mode shortly after the attack when everyone is in their Reptilian Complex brain ie emotional shock state, fight or flight syndrome! So, never believe what the MSM tells you for a week or 2. Remember how they were superfast to identify Osama Bin Laden and Al Qaeda as the culprit during 9/11? Virtually within an hour! This is BS propaganda psyop!
Obama’s Threat to Launch a Nuclear Attack on Iran
“This confrontation [between the forces of the Apocalypse and Israel] is willed by God, who wants to use this conflict to erase his people’s enemies before a New Age begins”. U.S. President George W. Bush (in a 2003 conversation with French President Jacques Chirac)
“Preventive war was an invention of [Adolf] Hitler. Frankly, I would not even listen to anyone seriously that came and talked about such a thing.” Dwight D. Eisenhower
“We don’t desire any nuclear proliferation in our region, and our policy is well known regardless of which country has such programs. For us it doesn’t matter whether it is Israel or Iran. I will call on the international community, which is so sensitive toward Iran, to pay attention to Israel, too.” Recep Tayyip Erdogan, Turkey’s Prime Minister
“Nothing in this Treaty shall be interpreted as affecting the inalienable right of all the Parties to the Treaty to develop research, production and use of nuclear energy for peaceful purposes without discrimination.”
The Nuclear Non-Proliferation Treaty (NPT)
By now, most everybody knows that the (2003-) Bush-Cheney Iraq War was based on fiction [http://news.antiwar.com/2009/08/10/elbaradei-regrets-not-doing-more-to-stop-iraq-war/] and on deception [http://www.buzzflash.com/contributors/03/07/22_lies.html]. There was no such thing as “weapons of mass destruction” in Iraq, the rationale for an illegal attack against that country. And Bush II and his accomplices knew that.
But incredibly, just as the Bush-Cheney administration did in order to launch a war against Iraq in 2003 by (falsely) alleging that Iraq had weapons of mass destruction, the Obama-Biden administration, in 2010, is arguing for unilateral sanctions against Iran and even beating the drums of war against Iran, alleging that its program to enrich uranium and operate nuclear power plants is posing an existential threat to Israel, to Europe and to the United States.
Besides being a blatant exaggeration, this is nevertheless most dangerous. Indeed, such an eventual military attack—which, by the way, would be illegal under international law—would also have dire economic consequences, because it would almost certainly result in the closing of the narrow Strait of Hormuz. Should we be reminded that it is through this strait that roughly 40 percent of all world traded oil transits out of the Persian Gulf to the Arabian Sea. Its closing would push the international oil price to unheard of levels.
Therefore, if the pro-Israel lobby and the pro-war neocon press [http://news.antiwar.com/2010/04/29/neocon-press-slams-obama-as-trying-to-soften-iran-sanctions/] were to succeed in 2010-11 in triggering a hot war against Iran, as they did in 2002-03 against Iraq, this could easily turn the current festering financial crisis into a full-fledged worldwide economic depression. Believe me, the last thing the world economy needs now is an oil-shock that would derail the present feeble economic recovery.
But the most disconcerting of all is no doubt the implicit threat recently made by President Barack Obama, on Tuesday, April 6, 2010, to launch a nuclear attack [http://www.globalresearch.ca/index.php?context=va&aid=18620] against Iran and North Korea if these countries refuse to toe Washington’s line. That sort of loose language is most dangerous because it may serve to trivialize the military use of nuclear weapons, a disaster that the world must avoid. The round of pronouncements demonizing Iran and the incessant calls for sanctions [http://www.nationalinterest.org/Article.aspx?id=23134] against a sovereign country by other U.S. politicians is also most unproductive, even though that may make for good domestic politics.
This is of course in addition to the use of unmanned drones to drop bombs on civilians in Pakistan and other American death squad activities [http://www.informationclearinghouse.info/article25346.htm] in Afghanistan that the Obama administration has intensified since gaining power. There seems to be a pattern here: No law or moral decency seem to be taken into consideration when such decisions, most likely illegal, [http://www.informationclearinghouse.info/article25344.htm] are taken, no matter who is in power in Washington D.C.
Logic would have it that all the nuclear countries in that part of the world (Israel, Pakistan, India,) sign the Nuclear Non-Proliferation Treaty (NPT), [http://www.presstv.ir/detail.aspx?id=124679§ionid=351020502] just as Iran has done, because an accidental, or worse, an intentional or provoked, use of nuclear weapons is the greatest threat to the region and to the world. In the long-run, however, the world needs a new and expanded nuclear non-proliferation treaty (NPT) to prevent nuclear war but, at the same time, to make sure that no country is denied access to nuclear energy that can enhance its economic development. Every country in the world has a right to enrich uranium and operate nuclear power plants.
US Threatens to Nuke Iran and Anyone Else it Feels like Nuking!
The 2010 nuclear Non-Proliferation Treaty Review Conference … as with previous years’ – promises to be yet another battle between the developing and the nuclear-armed nations. The US insists that the NPT needs to be rewritten so as to place greater limits on what it calls “nuclear weapons proliferation” whilst the developing nations say that the concern over proliferation is being used as a pretext by the US to avoid its own obligations under the same treaty to disarm its own nukes and to share nuclear technology with everyone else. This year, the same conflict will likely continue, and the US (and the US media) will of course try to blame it on Iran when in fact the emphasis on disarmament is shared by a number of countries called the New Agenda Coalition that includes Brazil, New Zealand and Egypt, and is not limited to Iran.
The mainstream US media of course automatically buy into the nuclear-armed nation’s agenda, claiming that the NPT needs to be “fixed” because it has “not prevented Iran from enriching uranium” … as if the role of the NPT is to prevent the peaceful use of nuclear technology (when in fact the explicit role of the NPT is to encourage it.) Look for the media making a big deal out of Ahmadinejad and trying to use him as a foil, and blaming him for the continued standoff at the meeting.
Under the terms of the NPT, the US and other nuclear-armed countries that have signed the NPT are obligated to 1- work towards disarmement, 2-share nuclear technology with other signatories, and 3- not share nuclear technology with non-signatories such as India and Israel. Also, in addition to these treaty commitments, in 1995 the US promised (again) not to use nuclear weapons against non-nuclear armed countries (known as the Negative Security Assurance) and is also bound by international law and UN Security Council Resolution not to threaten other countries with nuclear weapons.
However, every single obligation listed above. The US had initially agreed to a 13-step plan of action to disarm its nukes as obligated by the NPT. By 2005 and under Bush, the US declared that the 13-steps to be non-binding and irrelevant. The US and Britain and France have formally declared that they have no plans on scrapping their nuclear weapons. Sure, Obama did just hold a disarmament meeting with Russia, but that was just PR.
The US has also shared nuclear technology with both Israel and India, two non-signatories, in blatant violation of the NPT. THe US and other nuclear-armed countries continue to place limits on the sharing of nuclear technology with NPT signatories under the guise of preventing the proliferation of nuclear weapons. The developing nations have consistently decried this. …. The Final Document of the 10th Special Session of the United Nations General Assembly in 2002 also reiterated that non-proliferation measures should not be used to jeopardize the inalienable rights of all States to have access to and be free to acquire technology, equipment and materials for peaceful uses of nuclear energy, and that each country’s choices regarding nuclear fuel cycle policies should be respected.
And finally the US has explicitly threatened to nuke Iran and anyone else it feels like nuking. So, where exactly is the “crisis” in the NPT — with Iran, or the US?
- The turmoil in the financial market looks scary. I still hold to the view that the Illuminists are not ready to pull the plug for about 1 year. The final stage in this building crisis is the massive printing of fiat currencies (QE) to monetize debts. This will result in hyper-inflationary depression, currency debasement ie a global monetary crisis. Thereafter, they will introduce their pre-planned One World Currency. This will be followed by a deflationary depression! War is planned!
ShadowStats’ John Williams has done his math and believes his numbers tell the truth. He explains why the U.S. is in a depression and why a “Hyper-Inflationary Great Depression” is now unavoidable. John also shares why he selects gold as a metal for asset conversion in this exclusive interview with The Gold Report.
The Gold Report: John, last December you stated, “The U.S. economic and systemic crisis of the past of the past two years are just precursors to a great collapse,” or what you call a “hyper-inflationary great depression.” Is this prediction unique to the U.S., or do you feel that other economies face the same fate?
John Williams: The hyper-inflationary portion largely will be unique to the U.S. If the U.S. falls into a great depression, there’s no way the rest of the world cannot have some negative economic impact.
TGR: How will the United States’ decreased economic power impact global economies? Will the rest of the world survive?
JW: People will find to their happy surprise that they’ll be able to survive. Most businesses are pretty creative. The thing is, the U.S. economic activity accounts for roughly half that of the globe. There’s no way that the U.S. economy can turn down severely without there being an equivalent, at least a parallel downturn outside the U.S. with its major trading partners.
When I talk about a great depression in the United States, it is coincident with a hyper-inflation. We’re already in the deepest and longest economic contraction seen since the Great Depression. If you look at the timing as set by the National Bureau of Economic Research, which is the arbiter of U.S. recessions, as to whether or not we have one, they’ve refused to call an end to this one, so far. But assuming you called an end to it back in the middle of 2009, it would still be the longest recession seen since the first down-leg of the Great Depression.
In terms of depth, year-to-year decline in the gross domestic product, or GDP, as reported in the third quarter of 2009, was the steepest annual decline ever reported in that series, which goes back to the late ’40s on a quarterly basis. Other than for the shutdown of war production at the end of World War II, which usually is not counted as a normal business cycle, the full annual decline in 2009 GDP was the deepest since the Great Depression. There’s strong evidence that we’re going to see an intensified downturn ahead, but it won’t become a great depression until a hyper-inflation kicks in. That is because hyper-inflation will be very disruptive to the normal flow of commerce and will take you to really low levels of activity that we haven’t seen probably in the history of the Republic.
Let me define what I mean by depression and great depression, because there’s no formal definition out there that matches the common expectation. Before World War II, economic downturns commonly were referred to as depressions. If you drew a graph of the level of activity in a depression over time, it would show a dip in the economy, and you’d go down and then up. The down part was referred to as recession and the up part as recovery. The Great Depression was one that was so severe that in the post-World War II era, those looking at economic cycles tried to come up with a euphemism for “depression.” They didn’t want to create the image of or remind people of the 1930s. Basically, they called economic downturns recessions, and most people think of a depression now as a severe recession.
I’ve talked with people in the Bureau of Economic Analysis and the National Bureau of Economic Research in terms of developing a formal depression definition. The traditional definition of recession—that of two consecutive quarters of inflation-adjusted contraction in GDP—still is a solid one, despite recent refinements. Although there’s no official consensus on this, generally, a depression would be considered a recession where peak-to-trough contraction in the economy was more than 10%; a great depression would be a recession where the peak-to-trough contraction was more than 25%.
We’re borderline depression in terms of where we’re going to be here before I think the hyper-inflation kicks in. You’ve certainly seen depression-like numbers in things such as retail sales, industrial production and new orders for durable goods, where you’re down more than 10% from peak-to-trough. In terms of housing, you’re down more than 75%, and that certainly would be in the great depression category. With hyper-inflation, you have disruption to the normal flow of commerce and that will slow things down very remarkably from where we are now.
TGR: After a period of recession, isn’t inflation considered a good sign?
JW: There are a couple of things that drive inflation. The one that you’re describing is the relatively happy event where strong economic demand is exceeding production, and that’s pushing prices higher, as well as interest rates. That’s a relatively healthy circumstance. You can also have inflation, which is driven by factors other than strong economic activity. That’s what we’ve been seeing in the last couple of years. It’s been largely dominated by swings in oil prices. That hasn’t been due really to oil demand, as much as it has been due to the value of the U.S. dollar. Oil is denominated in U.S. dollars. Big swings in the U.S. dollar get reflected in oil pricing. If the dollar weakens, oil rises. That’s what you saw if you go back to the 1973-1975 recession, for example. That was an inflationary recession.
Indeed, the counterpart to what you were suggesting earlier about the strong demand and higher inflation is that usually in a recession you see low inflation. The ’73 to ’75 experience, however, was an inflationary recession because of the problem with oil prices. That’s what we were seeing early in this cycle, where a weakening dollar rallied oil prices, and then the dollar reversed sharply and oil prices collapsed. We have passed through a brief period of shallow year-to-year deflation in the consumer price index, but, as oil prices bottomed out and headed higher since the end of 2009, we’re now seeing higher inflation, again.
I’m looking at hyper-inflation, which is a rather drastic forecast. This has been in place as an ultimate fate for the system for a number of years. Back in the ’70s, the then Big 10 accounting firms got together and approached the government and said, “Hey guys, you know you need to keep your books the way a big corporation does. You’re the largest financial operator on earth.” The government then, as well as today, operates on a cash basis with no accrual accounting and such. Yet, over a period of 30 years, the accountants and government put together generally accepted accounting principles, or GAAP, accounting for the federal government and introduced formal financial statements on that basis in 2002, which supplement the annual cash-based accounting.
If you look at those GAAP-based statements and include in the deficit the year-to-year change in the net present value of the unfunded liabilities for Social Security and Medicare, what you’ll find is that the annual operating shortfall is running between $4 and $5 trillion; not $500 billion as we saw before the crisis or the $1.4 trillion that they announced for fiscal 2009. Now to put that into perspective, if the government wanted to balance its deficit on a GAAP basis for a year, and it seized all personal income and corporate profits, taxing everything 100%, it would still be in deficit. It can’t raise taxes enough to contain this. On the other side, if it cut all government spending except for Social Security and Medicare, it still would be in deficit. With no political will to contain the spending, eventually the government meets its obligations by revving up the currency printing press.
TGR: With all this new paper money coming into the system, wouldn’t we see a bigger bubble than we’ve ever seen prior to a hyper-inflationary great depression?
JW: No, in fact, it’s a very unusual circumstance that we have now. Put yourself in Mr. Bernanke’s situation—he had to prevent a collapse of the banking system. He was afraid of a severe deflation as was seen in the Great Depression, when a lot of banks went out of business. The depositors lost funds and the money supply just collapsed. He wanted to prevent a collapse of the money supply and keep the depository institutions afloat. Generally, that has happened. The FDIC expanded its coverage and everything that had to be done to keep the system from imploding was done. The effects eventually will be inflationary.
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