US And Israel Behind Cyber Attack on Iran!
- U.S., Israel developed Flame computer virus to slow Iranian nuclear efforts, officials say!
By Ellen Nakashima, Greg Miller and Julie Tate, Published: June 20 The Washington Post,
http://www.washingtonpost.com/
The United States and Israel jointly developed a sophisticated computer virus nicknamed Flame that collected intelligence in preparation for cyber-sabotage aimed at slowing Iran’s ability to develop a nuclear weapon, according to Western officials with knowledge of the effort.
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The massive piece of malware secretly mapped and monitored Iran’s computer networks, sending back a steady stream of intelligence to prepare for a cyberwarfare campaign, according to the officials.
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The effort, involving the National Security Agency, the CIA and Israel’s military, has included the use of destructive software such as the Stuxnet virus to cause malfunctions in Iran’s nuclear-enrichment equipment.
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The emerging details about Flame provide new clues to what is thought to be the first sustained campaign of cyber-sabotage against an adversary of the United States.
- - US, Israel behind Flame virus – officials
by
http://www.rt.com/
The United States and Israel jointly developed the Flame virus, which collected intelligence for a cyber-attack on Iran’s nuclear program. This has been confirmed by a number of Western officials familiar with classified data on the effort.
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The CIA, the National Security Agency (NSA) and the Israeli military were all involved in developing malware to sabotage Iran’s nuclear program, the officials confirmed.
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“This is about preparing the battlefield for another type of covert action,” noted one official, as quoted by The Washington Post. “Cyber-collection against the Iranian program is way further down the road than this.”
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Experts say Flame was designed to replicate even on highly secure networks. It allowed its creators to monitor the infected computer, activate microphones and cameras, take screenshots, log keyboard strokes, extract geolocational data from images and send and receive commands via Bluetooth wireless technology.
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The virus came to light last month, when Iran detected cyber-attacks on its Oil Ministry and oil export facilities.
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“The virus penetrated some fields — one of them was the oil sector,” Gholam Reza Jalali, an Iranian military official told the country’s state radio at that time. “Fortunately, we detected and controlled this single incident.”
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Some US officials were unsatisfied with the attack. They say it was the result of a unilateral decision by Israel, which failed to consult its American partners on the move
end
Syria Denies War Games with Russia, China, Iran – Ifax!
- Syria denies war games with Russia, China, Iran-Ifax!
Writing by Steve Gutterman; Editing by Jon Boyle,
http://af.reuters.com/
MOSCOW, June 19 (Reuters) – An adviser to Syrian President Bashar al-Assad has denied an Iranian media report that Syria would host Russian, Chinese and Iranian military forces for joint exercises, the Russian news agency Interfax reported on Tuesday.
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An Iranian news agency, Fars, reported that 90,000 troops and hundreds of ships, tanks and warplanes from the four countries would take part in the war games on land and sea in Syria soon.
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“There will be nothing like that. This is one of those (pieces of) false information that are distributed about (Syria),” Interfax quoted Bouthaina Shabaan, an adviser to Assad who was in Moscow on Tuesday, as saying. Interfax said she was referring to a report on al-Arabiya television that was similar to the Fars article.
end
GEAB N°66: Red Alert / Global Systemic Crisis – September-October 2012: When The Trumpets of Jericho Ring Out Seven Times for The World Before The Crisis!
- GEAB N°66 is available! Red alert / Global systemic crisis – September-October 2012: When the trumpets of Jericho ring out seven times for the world before the crisis!
by
http://www.leap2020.eu/
The progression of world events unfolds in accordance with the anticipations mapped out by LEAP/E2020 during these last few quarters. Euroland has finally come out from its political torpor and short-termism since François Hollande’s election (1) as France’s president and the Greeks have just confirmed their willingness to resolve their problems within Euroland (2) thus contradicting all the Anglo-Saxon media and Euro sceptics’ “forecasts”. From now on, Euroland (in fact the EU minus the United Kingdom) will therefore be able to move forward and create a true project of political integration, economic efficiency and democratization over the 2012-2016 period as LEAP/E2020 anticipated last February (GEAB N°62. It’s positive news but, for the coming six-month periods, this “second Renaissance” of the European project (3) will really be the only good news at world level.
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All the other components of the global situation are in fact pointed in a negative, even catastrophic, direction. Here again, the main media are starting to echo a long-standing situation anticipated by our team for summer 2012. Indeed, in one form or another, more often on the inside pages than in big headlines (monopolized for months by Greece and the Euro (4)), one now finds the following 13 topics:
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1. Global recession (no engine of growth anywhere / end of the myth of the “US recovery”) (5)
2. Growing insolvency of the Western banking and financial system and henceforth partially recognized as such
3. Growing frailty of key financial assets such as sovereign debts, real estate and CDSs underpinning the world’s major banks’ balance sheets
4. Fall off in international trade (6)
5. Geopolitical tensions (in particular in the Middle East) approaching the point of a regional explosion
6. Lasting global geopolitical blockage at the UN
7. Rapid collapse of the whole of the Western asset-backed retirement system (7)
8. Growing political divisions within the world’s “monolithic” powers (USA, China, Russia)
9. Lack of “miracle” solutions as in 2008 /2009, because of the growing impotence of many of the major Western central banks (Fed, BoE, BoJ) and States’ indebtedness
10. Credibility in freefall for all countries having to assume the double load of public and excessive private debt (8)
11. Inability to control/slow down the advance of mass and long-term unemployment
12. Failure of monetarist and financial stimulus policies such as “pure” austerity policies
13. Quasi-systematic ineffectiveness henceforth of the alternative or recent international closed groups, G20, G8, Rio+20, WTO,… on all the key topics of what is no longer in fact a world agenda absent any consensus: economy, finances, environment, conflict resolution, fight against poverty…
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According to LEAP/E2020, and in accordance with its already timeworn anticipations, just like Franck Biancheri from 2010 in his book “The World Crisis: The path to the World Afterwards”, this second half of 2012 well really mark a major inflection point of the global systemic crisis and the answers to it.
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In fact, it will be characterized by an event which is very simple to understand: if, today, Euroland is able to address this period in a promising fashion (9), it’s because, these last few years, it has gone through a crisis of an intensity and depth unequalled since the beginning of the European construction project after the Second World War (10). From the end of this summer all the other world powers, led by the United States (11), will have to face an identical process. It’s at this cost, and only at this cost, that they will subsequently, in a few years, be able to start a slow recovery towards the light.
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But today, after having tried all means of delaying the payment on the due date, the hour of payment arrives. And, as with everything, the ability to put off the inevitable comes at a high price, namely the bigger shock of adjusting to the new reality. In fact, it’s a question of the endgame for the world of before the crisis. The seven blasts of the trumpets of Jericho marking the September October 2012 period will cause the “Dollar Wall’s” last sections and the walls which have protected the world as we know it since 1945 to collapse.
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The shock of the autumn 2008 will seem like a small summer storm compared to what will affect planet in several months.
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In fact LEAP/E2020 has never seen the chronological convergence of such a series of explosive and so fundamental factors (economy, finances, geopolitical…) since 2006, the start of its work on the global systemic crisis. Logically, in our modest attempt to regularly publish a “crisis weather forecast”, we must therefore give our readers a “Red Alert” because the upcoming events which are readying themselves to shake the world system next September/ October belong to this category.
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In this GEAB issue, we expand on our anticipations for seven key factors in this September-October 2012 shock, the seven blasts of the trumpets of Jericho (12) marking the end of the world before the crisis. Four Middle Eastern geopolitical factors and three economic and financial elements are involved at the heart of the coming shock:
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1. Iran/Israel/USA: The war too far will really happen
2. The Assyrian bomb: the Israeli-American-Iranian match put to the Syria-Iraq powder keg
3. The AfPak chaos: the US army and NATO, hostages in an exit from an increasingly difficult conflict
4. The Arab Autumn: the Gulf countries swept away in the turmoil.
5. United States: « Taxargeddon » will begin from summer 2012 – The US economy in free-fall by autumn
6. Major bank insolvencies due in September-October 2012: The City-Wall Street version of Bankia
7. The untenable irresponsibility of QE in summer 2012 – the US, British and Japanese central banks out of the game
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In addition, we expand on our clear recommendations on how to minimize the impact of the shock in preparation on one’s own situation whether an individual or a business or public service decision maker. We also offer this month’s GlobalEurope Dollar Index.
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Finally, LEAP/E2020 announces the resumption of its political anticipation training next autumn, which will henceforth take place on line to satisfy the demand coming out of the four corners of the planet. If GEAB is a “fish”, an end product of anticipation, with this training, we hope to teach a growing number of people to “fish” for direction in the troubled waters of the future. Because hopes that the endgame of the world before the crisis leads to the building of a better world after the crisis, it seems essential to us to build the anticipation capacities of as many people as possible. In fact, it’s this absence of anticipation which for the most part has caused the mistakes at the current crisis’ origin.
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This training will be organized in partnership with the non-profit Spanish foundation FEFAP (Fondacion por Educacion E Formacion has Politica Anticipation) recently set up thanks to a donation from Franck Biancheri (13).
end
Declassified: Massive Israeli Manipulation of US Media Exposed !

Revelation 2:9 – …. and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.
- The 13th Tribe of Khazaria! Ashkenazi Khazars Are Not The Jews of The Bible!
If almost 98% of JEWS we know today are NOT semitic, wouldn’t the term ANTI-SEMITIC be null and void? I made this video with 3 Jewish friends who admit they are not Semites!!!!
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“Many [modern-day Jews] of whom have clamored to go back [to Palestine] NEVER had antecedents [physical ancestors] in that part of the world …. The OVERWHELMING majority of Jews are descendants from the converts of Khazaria and elsewhere who ADOPTED Judaism…. This VIEW of the NON-ethnicity of the largest portion of Jewry IS SUSTAINED by such prominent anthropologists as Ripley, Weissenberg, Hertz, Boas, Pittard, Fishberg, Mead and others. . “
- Dr. Alfred M. Lilienthal
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“… Though many Jews are NOT of Semitic origin, we are the religious, spiritual, and national [but NOT genetic] descendants of those who first formed the early foundations of Judaism who were Semites”
- Rabbi Cyril A. Stanway in “Viewpoints,” Thursday, November 8, 1990, in the Sun-News (Las Cruces, New Mexico)
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“. . these Eastern European, Yiddish-speaking Jews who form the Zionist group practically in toto [almost entirely], have NEITHER a geographic, historic NOR ethnic connection with either the Jews [Israelite Judahites] of the Old Testament OR the land known today as Palestine. “
- Jewish Dr. Benjamin H. Freedman, published by the National Economic Council, Inc. as “Council Letter No. 177 (October 15, 1947)
- - Modern Judaism is not the religion of the Bible! See here!
- Modern Ashkenazi Jews are not the Jews of the Bible! God’s covenant was with Abraham and his biological descendents. Ashkenazi Jews are not semitic and their ancestors were never in Palestine. They are not the descendents of Abraham/Isaac/Israel. They have no right to stay in Palestine. What the Zionists are doing to the Palestinians is called: genocide and ethnic cleansing! Zionist ’666′ Israel is not the Israel of the Bible! It is a LIE!
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1980 Jewish Almanac
“Strictly speaking it is incorrect to call an ancient Israelite a ‘Jew’ or to call a contemporary Jew an Israelite or a Hebrew.” (1980 Jewish Almanac, p. 3)
.
The Jewish Encyclopedia:
“Khazars, a non-Semitic, Asiatic, Mongolian tribal nation who emigrated into Eastern Europe about the first century, who were converted as an entire nation to Judaism in the seventh century by the expanding Russian nation which absorbed the entire Khazar population, and who account for the presence in Eastern Europe of the great numbers of Yiddish-speaking Jews in Russia, Poland, Lithuania, Galatia, Besserabia and Rumania.”
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The American Peoples Encyclopedia … for 1954 at 15-292 records the following in reference to the Khazars: “In the year 740 A.D. the Khazars were officially converted to Judaism. A century later they were crushed by the incoming Slavic-speaking people and were scattered over central Europe where they were known as Jews.
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According to the standard Jewish Encyclopedia 96% of all the Jews known to the world today are descendents of the Khazar tribes of Russia, Eastern Europe and western Mongolia.
- - The Bible specifically forbids the ill-treatment of people different from us ie: strangers. What Zionist ’666′ Israel does to the Palestinians is called: genocide and ethnic cleansing! Zionist ’666′ Israel is in total violation of God’s law!
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Exodus 22:21
“You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.”
Exodus 23:9
“Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.”
Leviticus 19:33
‘And if a stranger dwells with you in your land, you shall not mistreat him.’
Leviticus 19:34
The stranger who dwells among you shall be to you as one born among you, and you shall love him as yourself; for you were strangers in the land of Egypt: I am the LORD your God.
Leviticus 23:22
‘When you reap the harvest of your land, you shall not wholly reap the corners of your field when you reap, nor shall you gather any gleaning from your harvest. You shall leave them for the poor and for the stranger: I am the LORD your God.’
Leviticus 24:22
You shall have the same law for the stranger and for one from your own country; for I am the LORD your God.
Ezekiel 47:22-23
22 It shall be that you will divide it by lot as an inheritance for yourselves, and for the strangers who dwell among you and who bear children among you. They shall be to you as native-born among the children of Israel; they shall have an inheritance with you among the tribes of Israel. 23 And it shall be that in whatever tribe the stranger dwells, there you shall give him his inheritance,” says the Lord GOD.
- -
The so-called Star of David is a Satanic symbol. Satanists and occult practitioners use it for calling Satan and demons!
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Former Satanist, Bill Schnoebelen (now born again Christian)
“A hexagram must be present to call forth a demon” and ” it is a very powerful tool to invoke Satan”. – “To the sorcerer, the hexagram is a powerful tool to invoke Satan.” In fact, the word “hex” — as to put a “hex” or “curse” on people — comes from this word. – If you examine the so-called “Star of David,” or hexagram, closely, you will discover something astonishing. It has six points, forms six equilateral triangles, and in its interior forms a six sided hexagon — thus it reveals the number of Satan’ antichrist beast, — 6 points, 6 triangles, and the 6 sides of the hexagram — 666 !!!
- - See also:
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History of The “Six Million” Myth!
Bolshevik Jews Plotted The Ukrainian Holocaust!
The Jewish Genocide of 1.4+ Million Armenian Christians!
The Bolshevik Jews Behind The Deaths of 40+ Millions During The Communist Revolution!
YNET Israel News: Stalin’s Jews. We Mustn’t Forget That Some of Greatest Murderers of Modern Times Were Jewish!
Bolshevik Jews Plotted The Ukrainian Holocaust!
Mark Weber: The Jewish Role in the Bolshevik Revolution and Russia’s Early Soviet Regime! During Which 20+ Million Russians Died !
The Hidden History of Jewish Bolshevism & Freemasonry! How Masonic Wall Street Banksters Financed The Communist Revolution Which Killed Over 100 Million People!
Mark Weber: Wilhelm Höttl And The Elusive ‘Six Million’! Part 2 – How Many Jews Died?
Ashkenazi Khazars (90+% of modern Jewry) are not the Jews of the Bible!
Benjamin Freedman: Ashkenazi Khazars Self Style “Jews” Are Not Semitic And Not The Biological Descendents of The 12 Tribes of Israel !
The 2002 Jenin Holocaust of Palestinians By Zionist ’666′ Israel !
Deir Yassin Remembered ! The 1948 Holocaust of Palestinians by Zionist ’666′ Israel !
Jewish Historian Ilan Pappe: History of Zionism – Genocide And Ethnic Cleansing of Palestine!
Jenin Massacre
Jewish Historian Teddy Katz: 1948 Tantura Massacre of Palestinians! Genocide And Ethnic Cleansing!
Zionist ’666′ Israeli Apartheid and The Nakba!
Forget Deir Yassin: Its Victims Were “Unworthy”! The Holocaust of Palestinians by Zionist ’666′ Israel !
Holocaustianity: Zionism’s Big Lie!
Texe Marrs: Conspiracy of The 6 Pointed Star!
Repost: Holocaust, Hate Speech & Were the Germans so Stupid?
Jack Bernstein: The Life of an American Jew in Racist Marxist Israel !
Peace, Propaganda & The Promised Land ! US Media And The Israeli-Palestinian Conflict!
’666′ Star of David, Satanic Curse / Hex(agram) On Humanity! Occult Symbol.
The Historical Truth About Auschwitz!
Jewish Estimate Sees Number of Holocaust Dead Drop To 2.8 Million!
Fred Leuchter: The End of The Auschwitz Gas Chambers Myth!
Fred A. Leuchter, Jr.: Inside the Auschwitz ‘Gas Chambers’!
The Rudolf Report: Expert Report on Chemical and Technical Aspects of the ‘Gas Chambers’ of Auschwitz!
Barbara Kulaszka: What is ‘Holocaust Denial’?
How Many Died At Auschwitz?
How the Illuminati Manipulates Jews!
Hitler Was A Rothschild Jew?!
Norman Finkelstein on Zionism And The Holocaust Industry!
Holocaust Denier Death, Mossad Linked. How Many Jews Died in the German Concentration Camps?
Gideon Levy: Ethnic Cleansing of Palestinians, Or, Democratic Israel At Work?!
Israel Admits It Covertly Canceled Residency Status of 140,000 Palestinians!
Flashback 1990: Holocaust Expert Rejects Charge That Nazis Made Soap From Jews!
“ … it turns out the creation of Israel had not, after all, been a haphazard fight in which the Arabs fled their homes at the directives of their own leaders, but it had been an unprovoked, systematic campaign of ethnic cleansing by the Jewish militia involving massacres, terrorism and the wholesale looting of an entire nation.” - from 4:22 onwards
end
Stephen Lendman: Anti-Iranian Propaganda!
- Anti-Iranian Propaganda!
by Stephen Lendman,
http://sjlendman.blogspot.sg/
When America goes to war or plans one, media scoundrels march in lockstep. Articles, commentaries, editorials, and broadcasts feature Washington handout-style journalism. Managed news misinformation substitutes for truth and full disclosure. Readers and viewers are deceived and betrayed.-For years, Iran and Syria have been targeted for regime change. Independent governments aren’t tolerated. Puppet ones are planned to replace them. Scoundrel media play leading roles. On May 24, The New York Times headlined “Iran Nuclear Talks End with No Deal.”-P5+1 talks failed as expected. Washington bears full responsibility. Deal-making isn’t at issue. It’s portraying Iran as uncooperative for added justification to wage war.-“The six wanted a freeze on Iranian production of uranium enriched to 20 percent purity, which is considered a short step from bomb grade.” In fact, it’s a giant one to 90% required for weapons making. It’s especially so without intent to produce them. Medical isotopes and other peaceful applications require 20%. NPT provisions permit it. Iran fully complies. Washington and Israel are serial violators. Their belligerence threatens humanity. Tehran threatens no one.-EU lead negotiator Catherine Ashton said “very intense and detailed discussions (left) significant differences” unresolved. They’ll remain so in future meetings. A June 18-19 Moscow one is planned. Nothing substantive will change. “We will maintain intensive contacts with our Iranian counterparts to prepare a further meeting in Moscow,” Ashton announced.-Iran’s chief negotiator, Saeed Jalili said:-“Of the main topics in using peaceful nuclear energy is the topic of having the nuclear fuel cycle and enrichment. We emphasize this right.” “This is an undeniable right of the Iranian nation….especially the right to enrich uranium.” If P5+1 nations negotiate in good faith, “we will, of course, welcome some offer to cooperate on.”-Iran didn’t go to Baghdad to surrender. Its position won’t change in Moscow. Washington demands it. The Times left that and other key issues unaddressed and/or misreported.
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On May 26, Reuters headlined “Iran has enough uranium for 5 bombs: expert,” saying:-The Institute for Science and International Security (ISIS) claims “Iran has significantly stepped up its output of low-enriched uranium and total production in the last five years (to provide) enough for at least five nuclear weapons if refined much further.”-David Albright heads ISIS. He impersonates a nuclear expert. He’s a former pseudo-UN weapons inspector. Former Iraq chief weapons inspector Scott Ritter called him a “nuclear expert who never was.” His “track record (reveals) half-baked analyses derived from questionable sources….He breathes false legitimacy into these factually challenged stories by” claiming fake credentials.-Albright founded ISIS. It’s self-serving. It shuns truth. He fronts for power, privilege, and war profiteers. He’s part of Washington’s anti-Iranian agenda. In Iraq, he played the same role. He’s a pro-imperial opportunist. In June 1996, he appeared once as as a pseudo-Iraq weapons inspector. His role was political, not scientific. He observed and regurgitated what Washington wanted to hear. He’s doing it now on Iran. His credibility is sorely lacking. He has none.-Claiming Iran is able to produce five bombs is inflammatory and misleading. All nations with commercial reactors produce enough uranium and plutonium for bomb-making. Only a handful, in fact, do it. Iran isn’t one of them. That’s the headline not featured. Instead, deceptive ones heighten tensions for war.
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read more!
end
The Plan To Destabilize Syria!
- The plan to destabilize Syria!
by Thierry Meyssan,
http://mycatbirdseat.com/
The operations conducted against Libya and Syria involve the same actors and strategies. However, their respective outcomes will differ since the situations in these countries are not comparable. Thierry Meyssan analyzes the semi-failure experienced by the colonial and counter-revolutionary forces, and predicts a pendulum reversal in the Arab world.
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The efforts to overthrow the Syrian government have a lot in common with what has been undertaken in Libya. However, the results are substantially different owing to each country’s social and political background. The project to break up these two States simultaneously was initially brought up by John Bolton on 6 May 2002 when he was serving as Undersecretary of State in the Bush administration. It’s implementation by the Obama administration nine years down the line – in the context of the Arab Awakening – is not without problems.
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Like in Libya, the original plan intended to bring about a military coup, but it soon proved impossible owing to the lack of willing Syrian military officers. According to our sources, an analogous plan had also been envisaged for Lebanon. In Libya, the plot was leaked and Colonel Gaddafi proceeded to have Colonel Abdallah Gehani arrested [1]. In any case, the initial plan had to be revised in light of the unexpected “Arab Spring” scenario.
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Military action
The central idea was to foment unrest in a well circumscribed area and to proclaim the establishment of an Islamic emirate that would serve as a platform for the dismemberment of the country. The choice of the Daraa district can be explained by its proximity to the Jordanian border and the Israeli occupied Golan Heights. This layout would make it easy to funnel supplies to the secessionists.
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An incident was contrived involving students who engaged in provocations. It succeeded beyond all expectations given the brutality and stupidity of the local governor and police chief. When the demonstrations started, snipers were positioned on the roofs to shoot at random into the crowd and against the police forces. A similar script had been used in Benghazi to fuel the revolt.
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Other clashes were planned, invariably in a border area to secure a support base, first in Northern Lebanon, then on the border with Turkey.
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read more!
end
Turkey-Iran Annual Trade Involves Gold Upto 82 Tons!
- The western Illuminati has shot themselves in the foot by using the SWIFT system as a weapon of war against Iran. Countries all over the world are abandoning the USD for international trade settlement. Many countries are turning to gold for this. Gold is returning as money whatever new monetary system comes about!
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Turkey-Iran annual trade involves Gold upto 82 tons!
by
http://www.bullionstreet.com/
Turkey aims at increasing gold production to 34-36 tons a year in the short run from the current 24 tons. Europe’s largest gold producer Turkey said it’s annual use of gold in trade with Iran is between 80-82 tons. Turkey’s energy minister Taner Yildiz said the country has already been using gold in Iranian trade and Iran bought gold worth $1.2 billion in April of this year alone. Turkey aims at increasing gold production to 34-36 tons a year in the short run from the current 24 tons, the minister said.
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Along with the private companies, the public sector also contributes to this. he added. Trade between Turkey and Iran has risen sharply over the past decade, and Turkey was regarded as a possible weak link in international sanctions against Iran.
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Turkey is planning a money exchange structure with Iran which will cut the usage of U.S. dollars as much as possible and develop trade with the two countries’ national currencies, he said.The minister’s statement came at a time when Iran, suffering from money transaction problems due to a hard U.S. embargo, is seeking opportunities in the Turkish banking sector. Turkey has already taken steps to trade with local currencies with a number of countries including India, Russia, China and Iran.
end
G20 Summit: Perils of a Half-Baked Rescue for Spain And Italy!
- G20 summit: perils of a half-baked rescue for Spain and Italy!
By Ambrose Evans-Pritchard,
http://www.telegraph.co.uk/
Germany and France are doubling up on a high-risk gamble. The tentative deal at the G20 summit to mobilise the EU’s rescue machinery to douse the raging fire in Spain and Italy comes in the nick of time, but is fraught with fresh dangers.
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Chancellor Angela Merkel and President Francois Hollande have to do something. The market reaction to Spain’s €100bn EMU rescue for its banks has been calamitous. Monday’s explosive rise in Spanish two-year bond yields was a warning that Spain’s crisis would spiral out of control within days, taking Italy with it.
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Yet the deal explored over ceviche and mango at Los Cabos in Mexico remains murky. Any plan will backfire horribly unless conducted in the right way, and with overwhelming force.
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From what we know, the eurozone’s leaders aim to deploy the European Stability Mechanism (ESM) to cap borrowing costs for Spain and Italy by purchasing sovereign bonds on the open market.
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Unfortunately, the ESM fund does not yet exist. It has not been ratified by Germany and Italy. When it does come into being, it won’t have much money. It has a theoretical limit of €500bn — a nice wish — but its paid up capital will start at just €22bn.
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Britain’s George Osborne cautioned against exuberance. “One thing we have learnt is: don’t expect a single summit to solve the eurozone’s problems, otherwise you are going to be disappointed. The eurozone is inching towards solutions.”
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read more!
end
Abandoning Ship: The Eurozone is Failing at an Accelerating Rate!
- A global economic, financial and monetary collapse is coming! It will start in the PIIGS, spread to the rest of Europe, UK, Japan, Asia … and finally America! (emphasis mine)
-
Abandoning Ship: The Eurozone is failing at an accelerating rate!
by Alasdair Macleod,
http://www.peakprosperity.com/
It will be no surprise to PeakProsperity.com readers that the news coming out of the Eurozone just gets worse and worse. The reality is that Ireland, Portugal, Spain, Italy, Belgium, Greece, and France (in no particular order) are all in debt traps from which there is no escape. A debt trap is sprung when bankruptcy becomes the only outcome. With corporations, this usually becomes readily apparent and directors are forced by law to stop trading, but countries conceal this reality by printing money. Otherwise there is no difference in the two cases, despite what politicians and neoclassical economists would have us believe. This is why we are painfully aware that the Eurozone is in trouble, since nation states are unable to cover and conceal their obligations by printing money, having surrendered this role to the European Central Bank (ECB).
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The ECB is meant to be independent of politics and political pressures. But the reality facing any central banker is that s/he cannot stand by and let politicians drown in their own mess. The politicians know this, and it’s what is behind current attempts to move away from austerity towards Keynesian growth. The plea is exactly the same as that of the spendthrift who tells his bank manager that the only chance he has of getting his money back is to increase the overdraft to allow him to trade his way out of difficulty.
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So the ECB knows, in its role as bank manager, that the argument is flawed. But unlike spendthrift individuals, politicians have real power, and the ECB has an ultimate responsibility not to upset the apple cart. And that is why the election of a new socialist French president is important. President Hollande is leading the charge away from austerity in Europe, and he has powerful allies, including President Obama in his own election year.
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Unfortunately, the ECB and the politicians lack a proper understanding of their economic condition because they continue to operate within the neoclassical framework that has led them into this mess. The lack of understanding of the relationship between the elements of hard-to-predict future consumer preferences, as well as the entrepreneurial function and the role of time in their calculations, has led to a reliance on sterile economic models. These leave no room for the dynamic and unpredictable creativity of human nature that gives us real economic progress. It is the difference between a proper understanding of the role of free markets, and thinking they can be manipulated to achieve an outcome preferred by the state without adverse consequences. An important consequence has been the creation of credit-induced business cycles leading to escalating levels of debt in both private and public sectors, which is why so many countries have become ensnared in debt traps. This statement of the obvious is not recognised by Keynesians and monetarists who continue to argue that the solution is yet more debt, more stimuli, and the avoidance of deflation at all costs. And it is neoclassical Keynesians and monetarists that populate the central banks and advise politicians.
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This brings us to an important consideration: Despite what her officials say publicly, austerity has limited support within the ECB itself, because it is run at the top by neoclassical economists. Instead, the real constraint is Germany, whose citizens’ savings are on the line and which faces the prospect of its third currency collapse in a century. So this is where the lines are drawn up: spendthrifts desperate for more money, a conflicted central bank, and Germany.
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read more!
end
EL-ERIAN: The Fed’s New Policy Is Causing ‘Distortions That Will Take Years To Resolve’!
- Keep in mind that the FedRes, ECB, BIS, IMF, World Bank … and practically all central banks are privately owned Illuminist financial institutions. They control/own the western MSM. They sell to the sheeple the illusion that the Illuminist banksters are the saviors of the world but in reality they are the cause of the financial problems. There is no intention on the part of these Illuminists to solve the problems. At every step of the way, they have made the problem worst.
- - The real plan of these Illuminists is a One World Currency, Global Supra-National Central Bank (very like the IMF 2.0) and a Luciferian World Government / New World Order –> ’666′! The final endtimes empire! They want to achieve this via their philosophy of Order Out of Chaos via a global economic, financial and currency meltdown leading to World War!
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EL-ERIAN: The Fed’s New Policy Is Causing ‘Distortions That Will Take Years To Resolve’!
by Matthew Boesler,
http://www.businessinsider.com/
Mohamed El-Erian, CEO of PIMCO, the world’s biggest bond fund, just published his instant reaction to the Fed’s policy announcement in the Financial Times.
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On today’s FOMC announcement that Operation Twist will be extended through year end, El-Erian says that “all the Fed will do is buy some time,” and that in the interim, “collateral damage will mount, making the next policy steps even more excruciating.”
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Here are El-Erian’s thoughts on the likely outcome of the FOMC decision today, and specifically how it affects his business at PIMCO:
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What this continued Fed activism will do is to continue altering the functioning of markets, contaminate price discovery and distort capital allocation. Already, the viability of several segments – from money markets to insurance and from pension provision to suppliers of daily market liquidity, all of whom provide financial services to companies and individuals – has been undermined. The Fed has also conditioned many market participants to believe in a policy put for both equities and bonds. And other government agencies are relieved to have the policy spotlight remain away from their damaging inactivity.
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Ultimately, however, El-Erian takes an apologist stance toward the Federal Reserve and instead blames American politicians, saying he suspects “that Fed officials feel a moral obligation to act when others won’t…and the last thing they want is to inadvertently contribute to a sluggish US economy that would accentuate the synchronized slowing now taking holding of the global economy.”
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