Socio-Economics History Blog

Socio-Economics & History Commentary

Commodities Cap Biggest Monthly Gain Since 1974 on Dollar Drop

  • Commodities market are moving higher primarily because of the pricing in USD. The Chinese are exchanging their USD for commodities. This bull market looks like the beginning of the next commodities super cycle. Bloomberg reports :
    Commodities jumped, capping the biggest monthly rally in 34 years, as the slumping dollar bolstered demand for energy, metals and crops as a hedge against inflation.
    In May, the Reuters/Jefferies CRB Index of 19 raw materials gained 14 percent, the most since July 1974. The
    dollar touched the lowest level in five months against a basket of six major currencies.
    Signs of a recovery in the global economy have spurred demand for fuel, industrial metals and crops. Crude oil posted the biggest monthly gain in a decade. Gasoline soared 31 percent in May. Gold, silver and copper surged, while corn and soybeans reached the highest in about seven months.
    “The belief that the world economy is not going down into a black hole anymore has brought a lot of investors back in,” said
    Peter Sorrentino, who helps manage $13.8 billion at Huntington Asset Management in Cincinnati. “You also have the threat of inflation, and that means that people just want to have hard assets.”
    The CRB index gained 1.3 percent to 253.05 today, extending a rally to the highest since November. The dollar fell for the third straight month against the currency basket, partly on demand for assets with higher returns.
    Investors are seeking a “safe haven from a weaker dollar,” said
    Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. “This rally is sustainable, given prospects of the dollar, which is expected to weaken along with other industrialized countries’ currencies.”
    Still, U.S. business activity contracted at a faster pace than forecast in May as orders dropped. Unemployment, already at a 25-year high, is forecast to keep climbing and home foreclosures are at a record. Bankruptcy looms at General Motors Corp., the biggest U.S. carmaker.
    “I don’t know where all the optimism for the economy is coming from,” said
    Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. “When you look at housing and autos, all of those things are still weak. There is a disconnect between what the reality for the economy is and what people think.”
    Crude-oil futures for July delivery rose $1.23, or 1.9 percent, to $66.31 a barrel on the New York Mercantile Exchange. This month, the price jumped 30 percent, the most since March 1999.
    Gasoline futures for June delivery rose 2.05 cents, or 1.1 percent, to $1.931 a gallon. The monthly gain was the biggest since March 2006. Gold futures topped $980 an ounce today, and silver had the biggest monthly increase in 22 years.
    Cotton surged 5 percent today, and copper climbed for the fifth straight month. The dollar dropped 4.9 percent this month against the currency basket.


May 30, 2009 Posted by | Economics | , | Comments Off on Commodities Cap Biggest Monthly Gain Since 1974 on Dollar Drop

Max Keiser on Sovereign Debt Crisis

  • How long will it be before both US and UK sovereign bonds are downgraded from their ‘AAA’ rating? The market is already anticipating this and reacting by dumping treasury bonds and USD.
  • How will the biggest creditor nation: China react to this? They are caught with US$2T of USD denominated holdings. The Chinese are dumping their USD by buying record amount of commodities like oil, copper.. iron and gold.


May 30, 2009 Posted by | Economics | , , , , , | Comments Off on Max Keiser on Sovereign Debt Crisis

COMEX Gold Price Manipulation Stress Near Breaking Point !

  • Gold is about to explode upwards! With North Korea breaking the armistice agreement with South Korea, another war is brewing! North and South Korea never signed a peace treaty. They only agreed to a cease fire. The Israelis will be undergoing a major war exercise starting tomorrow 31 May. This seems to be in preparation for a greater middle east war. I still see more wars and a strong possibility of World War 3. Is the shadow illuminati power starting all these wars to maintain their control over the world? Their financial system is crumbling and Asia is threatening their hold on the world money system.
  • Unfortunately (or fortunately), all these developments bode well for Gold. Jim Willie highlights behind the scene moves of the hidden financial war.
    It has come to my attention that several private parties have accepted contract assignments to neuter the COMEX and London Metals Exchange, to render ruin to its gold market. That bears repeating from the rooftops. MUTLIPLE HIRED HITMEN HAVE ASSIGNMENTS TO KILL THE COMEX GOLD MARKET. That is the lynchpin to control the USDollar, the USTreasurys, and the corrupt mechanisms used by the New York and London syndicates. Their clear criminal behavior is beyond the reach of law enforcement, but they are not beyond the reach of hitmen. The USDollar has been in violation of the US Constitution since 1971, perpetuated by a renegade series of administrations.
    The global creditors for the USTreasury Bonds are so angry at the past suffered losses, the prospect of deep future losses, and the corruption laced throughout the US financial system, that they have hired third parties to kill off the US$-gold platforms, to destroy the burdensome banking ballast dominated by protected entrenched fraud experts, to lay waste to the vehicles used by the US-UK bond trafficking syndicate totally saturated with corruption, dishonesty, and collusion, replete with greed, totally absent conscience. They have systemically been dismantling the COMEX pillars and levers over the last several months, quietly and without fanfare, surely without publicity. If gold investors knew of their actions, they would become much bolder. Some want the bankers in their gunsights not to be warned. They await their fate with the Financial Grim Reaper. Their executions will be as swift as brutal.
    The HITMEN have been hired, with highly lucrative contracts and wide berth in methods to be put to use. Their assigned task is to castrate the levered family jewels from some of the major players who illegally keep the gold price and silver price artificially low. The targeted victims know their awaited fate, and are presently defecating in their skivvies. A short list of banks facing the firing squad is already known, …. This will be an evolving story, with new chapters soon written.
    The executions will be sudden.
    The missing US-UK levers will be immediate. Since last autumn, the global powers have aligned against Wall Street, even if the central bankers have supported it. If one wants to destroy a building, then weaken its pillars, cut a few support beams, then rush in a crowd of people, and wait for a turbulent storm. In the case of the COMEX, the wicked players will crowd the corrupted building. They will sink into ruin and then oblivion. They might become objects of mockery when they make noises from prison.  …..
    The financial cartel dominated by the United States and United Kingdom is soon to suffer some serious blows. The list of their financial crimes is as magnificent as it is long. Its list of victims is as prominent as it is long. The harbored resentment is great by many global players. They waited patiently for the Obama Admin to install a new group, but the old group remains due to a revolving door from the same smoky club, dominated by Goldman Sachs once more. Their influence, if not bribery, of the USCongress is in continuation, sufficient for unwanted obsequious approval. The regulatory agencies are from the same encrusted chambers replete with stench. The Coup d’Etat of the USGovt financial offices has not changed with Obama, who sounds like a refreshing leader but who is actually a marionette under control by those who selected him, favored him with publicity, then enabled his election. Nothing has changed except the rhetoric of change and the pace on the path to bankruptcy for a few icon firms like General Motors and Chrysler, if not the desperate cries from the 50 states suffering from insolvency. More prominent failures will follow, since nothing has been remedied. The channeled funds directed to Wall Street firms continue unabated. The bread crumbs to Main Street and the people continue unabated. ….
    Some might wonder what was the turning point that resulted in hired hitmen to be under contract against certain US financial markets. Some might say the failures of Lehman Brothers, American Intl Group, and Fannie Mae. Not so! In my opinion, it was the invasion in the South Osettia region of Georgia in August 2008. The events around Georgia, with the United States Military deeply involved, along with a certain tiny mischievous ally nation, lit a fuse that set off a chain of events. In time, events led to orders given by high level powers, for the US fraud kings on Wall Street to swallow the medicine no later than first thing Monday morning on September 15th. When the Jackass inquired as to the nature of the urgency leading into that understood stated deadline date, no answer was given. The guess of the Bank For Intl Settlements was submitted by me, and it was confirmed.
    Other sources, the USTreasury Bond creditors, also applied the pressure, it was told. Rumor was thick that death threats had been delivered to certain Wall Street executives, such as Paulson. Thus the pressure passed on to the USCongress for passage of T.A.R.P. funds. The disbursement of those funds have not been made public partly because Wall Street (read Goldman Sachs) does not want the US people to be aware of payoffs for bond fraud under death threats. Also, the Congressional Inspector has cited a few dozen recommendations for criminal fraud investigations of the same T.A.R.P. funds. The US financial sector has become a den of vipers, no longer the bastion of gentlemen, but rather of syndicate bosses.
    Sources from GATA (the Gold Anti-Trust Action committee) report growing distress for participants in the COMEX gold contracts, where a commercial party is very short and in deep trouble. They have sold more gold bullion than they can deliver. They are likely one of the big banks who violate the law with impunity, with USGovt sanctioned protection. By that is meant they routinely do not post 90% of the metal as collateral that they illegally sell. This is naked shorting by any other name. There are reports of grave concern over the upcoming June gold option expiration.If too many deliveries are ordered, then the commercial shorts would be under stress for exposure for naked shorting. They will eventually be caught in a bind and default on contracts. The important loaded monthly contracts are March, June, September, and December. The COMEX has tried to limit the ability of buyers to take delivery, running them around in circles, and entangling them in red tape, all clearly restraint of trade endorsed by the USGovt. Such rules are not in effect for cotton or soybeans or crude oil or pork bellies. After all, a financial crime syndicate has taken control of the USGovt, ever since Robert Rubin took charge at the USDept Treasury in 1992. ….
    Background inventory strain has come from unexpected sources. The Germans have demanded that gold bullion held in US custodial accounts be returned to their owners, with physical gold shipped back to Germany. The Dubai bankers have demanded that gold bullion held in London custodial accounts be returned to their owners, with physical gold shipped back to the United Arab Emirates. They are following the hired German counsel. In all likelihood, neither US nor London sources are in possession of all the gold held in those custodial accounts, since at least some of it probably was improperly leased. By that is meant without owner permission or knowledge. So an uproar could come soon with charges of gold bullion theft, or at least failure of fiduciary responsibility. Theft is a simpler description.
    China is the biggest gold producer in the world now, but none of its output is directed to the open market. Russia is a significant gold producer also, but none of its output is directed to the open market either. A near default occurred in early April from a close call to Deutsche Bank on 850 thousand ounces of gold. The tarnished bankers at D-Bank dug up over a million ounces on the quick from the ready Euro Central Bank mine shifts in the nick of time. Never ignore the basic fact that COMEX lies through its teeth about the gold bullion in its vaults, since audits do not occur, some is leased (replaced by paper certificates), and some is committed in some fashion to very wealthy parties (unavailable). Far less gold bullion rests in COMEX vaults than is advertised.
    All signals point to serious strain in COMEX gold supply.
    The gold price is on the verge of a breakout to new nominal highs. The chart demands it. It needs only a trigger, in a land where potential triggers dot the charred landscape. A gold event will be unavoidable. Its chronic strain has derived from the extreme disparities between the physical market mired in shortage, versus the paper market with unlimited supply. The tail is wagging the dog here, as it has been for years, soon to end. The silver price will easily recover to the 17 level in a flash. It has already surpassed the February high. It is loading up for the next little surge to resistance that awaits at the 17-19 range. The potential sling shot momentum boost for silver will be powerful, enough to send its price to 30 with ease. Think pendulum.


May 29, 2009 Posted by | Economics | , , , , | 2 Comments

Peter Schiff and Marc Faber on Hyper-Inflation

  • Interesting interview on the Glenn Beck show on 28 May 2009. Will inflation be the problem? Or will deflation win out?


May 29, 2009 Posted by | Economics | , , , , | Comments Off on Peter Schiff and Marc Faber on Hyper-Inflation

Pentagon: Preemptive Nuclear First Strike on North Korea Likely?

  • With American forces bogged down in Afghanistan, Pakistan and Iraq, will Obama move towards a preemptive first strike on North Korea? This could mean the employment of tactical nuclear war heads to destroy military objectives. This piece by Turner Radio Network is probably highly speculative. But who knows? 
    North Korea yesterday withdrew from the Armistice that halted the Korean War. Today, official Washington is abuzz with not so secret “Top Secret” plans for the United States to make a limited nuclear first strike to wipe out the North Korean threat in one fell swoop.
    Russia has been alerted to “make plans” for radiation fallout in its eastern border area. In consultations with China, the U.S. Ambassador to Beijing was said to be stunned when he was told by the Chinese government “Kim Jung Il is out of control and dangerous. He has become a serious liability for China. Do what must be done, but please do it in a manner that minimizes risk to China.”
    China was then briefed about US plans and asked to prepare its southern population areas for radiation fallout. It is expected that prevailing weather patterns will disperse fallout over the sea, causing it to thin out dramatically before moving over land.
    Worst development since World War 2
    Our source in the State Department explained today why this situation got so bad, so fast. “The Korean War legally never ended.” he said. “There is no peace treaty, there is only an Armistice, a formal cease-fire. When North Korea officially withdrew from the Armistice yesterday, it automatically brought us back into a hot war. “he continued.
    Speaking on condition of anonymity because he is not authorized to speak to the media, the high ranking state department source told Turner Radio Network (TRN):
    Of all the scenarios involving North Korea, withdrawing from the Armistice was the one thing we thought they never would do. Since the War, everyone has known that withdrawing from the Armistice means the cease-fire is over. Today, that cease fire is over; we are back at war with North Korea and this time, the outcome will not be negotiated. Withdrawing from the Armistice was the last mistake North Korea will ever make. Their leadership must surrender now or they are nothing more than dead men walking. It’s over for them” he finished.
    Pentagon: Nuclear first strike “Likely”
    Early in the evening on Tuesday, President Barack Obama gave permission for the US Military to airlift “Patriot Missile Air Defense” systems to South Korea and additional units to bolster 16 systems already in Japan. Those systems were airborne hours later and arrived in South Korea and Japan today.
    The model of Patriot Missile systems sent is “PAC-3” and they were accompanied by M-901 control stations and AN/MPQ-53 phased array radar. Sources with acute knowledge of the plans for North Korea have confirmed to TRN that a US nuclear first strike is going to be launched.
    The first strike will be carried out through submarine-launched, BGM-109 Tomahawk cruise missiles, model TLAM/A whose explosive payload can be “dialed” to be anywhere from 100 kilotons to one point five megatons nuclear yield per missile.
    There will be no warning. North Korea will not be able to track the incoming cruise missiles via radar. The only way they will know the attack is taking place is when they see a blinding white flash as the temperature rises to ten thousand degrees and the wind gusts to 650 miles per hour.
    North Korean troops along the Demilitarized Zone (DMZ) will be hit first to prevent them from invading south Korea. Multiple cruise missiles using Time of Arrival (TOA) control will detonate simultaneously along the DMZ, wiping out over one million North Korean troops in seconds.
    Minutes later, after the U.S. National Security Agency (NSA) confirms that the North Korean leadership has been told by their own command structure that their troops at the DMZ have all been killed, Kim Jung Il will be contacted and asked if he is willing to surrender. It is expected he will not.
    At that point, a B-2 Stealth Bomber will be sent in to deliver the final blow. Pyongyang will be hit with a surface detonation of a massive nuclear bomb, wiping out the entire city and the entire government of North Korea.
    As soon as that surface detonation takes place, several hundred additional cruise missiles carrying conventional payloads and launched from land, air and sea sites, will hit every North Korean military facility in the entire country, instantly crippling their entire command and control system. Carrier based Aircraft will then fly in to clean up whatever resistance remains.
    It is expected the war will be over within one or two days. Korea will be reunited. It’s Capitol will be Seoul and its government will be democratically elected.
    One strike, two purposes
    This difficult decision to make a nuclear first strike was arrived at because the threat of North Korea invading South Korea once hostilities resume was too great a danger to world stability. The world does not need or want another large, lengthy war.
    The decision to use a nuclear first strike serves another purpose as well: sending a clear message to countries like Pakistan, India and Iran about what they can expect if they continue traveling down the nuclear road.
    The thinking in Washington, Beijing and Moscow is that the world needs to send this message and there will not be a better reason or better time to send it than now.


May 29, 2009 Posted by | GeoPolitics | | 8 Comments

Kim Jong Il’s Provocations To The West May Hide a Rational Purpose

  • Who can understand what this madman is thinking? North Korea is a big enigma. It is a totally closed society with the people bordering on starvation. We can only speculate what this fellow is upto. The Times UK reports :
    The most common analysis is that it is an effort to capture the attention of the Government that matters most to North Korea — the US Administration of Barack Obama. Mr Kim wants one thing more than any other — a comprehensive peace treaty, with guarantees of North Korean security, in place of the flimsy armistice, and all underwritten by the US. It is towards this end that all his mischief-making, and his nuclear programme, are bent; and he will have eagerly noted Mr Obama’s inauguration promise to reach out a hand to America’s antagonists.
    He may by now be wondering why he has not received more attention from the US, which has been far more focused on Afghanistan and the Middle East. Part of North Korean thinking is undoubtedly to force itself on to the US political agenda, and put itself in a position of strength in advance of the inevitably tough negotiations ahead.
    It has worked in the past — even the temperamentally uncompromising Bush Administration gave in and agreed to bilateral talks with Pyongyang, and removed North Korea from a blacklist of terrorist states. There is something about the speed and tone of the current development — a sense of acceleration and a manic quality, striking even by North Korean standards — that leads one to suspect that there is more to it than the usual urge to affront the outside world.
    The answer may lie in that element of the North Korean enigma least accessible to outside scrutiny — the internal power politics of its leadership. The signs are that Kim Jong Il is in complete control, but close examination of recent internal developments leads many Pyongyang-watchers to the conclusion that he is leaning towards military hardliners, and away from the more reform-oriented advisers he favoured in the middle of the present decade.
    Reports, unsatisfactorily filtered as always through unsourced leaks to South Korean journalists, suggest that old aides have been dispatched to labour camps or even executed, and replaced with hardliners. In February the vice-marshal of the Korean People’s Army, Kim Yong Chun, was appointed minister of the National Defence Commission, and General Ri Yong Ho was made army chief of staff. Both are hawks, associated with the North’s first nuclear test in 2006, the kind of old fashioned ideologues who would always favour confrontation over compromise and who would glory in the prestige of membership of the nuclear club.
    Why does Kim Jong Il need such men? The best one can do is speculate, but the answer is almost certainly connected to the stroke that he appears to have suffered last summer, which put him out of action for weeks. Other snippets of information suggest that he is wisely contemplating his end, and preparing one of his sons (probably the third and youngest, Kim Jong Un) for power. Any such transition will be highly uncertain and will require powerful supporters. In the absence of the Dear Leader, the only power that will count may be that of raw military force.
    Finally there is the most obvious motivation if all — the military one. North Korea has been on a war footing all of Kim Jong Il’s life. Comparatively recently, President Bush pronounced his Government to be part of the Axis of Evil — shortly before invading Iraq. Whatever you think of Mr Kim, it is entirely understandable that he should want to protect himself as effectively as possible — and history suggests that nuclear weapons are a potent guarantee of being left alone.


May 29, 2009 Posted by | GeoPolitics | | 2 Comments

Children Who Get Flu Vaccine Have Three Times Risk Of Hospitalization For Flu, Study Suggests

  • This is an interesting article. Science Daily reports :
    The inactivated flu vaccine does not appear to be effective in preventing influenza-related hospitalizations in children, especially the ones with asthma. In fact, children who get the flu vaccine are more at risk for hospitalization than their peers who do not get the vaccine, according to new research that will be presented on May 19, at the 105th International Conference of the American Thoracic Society in San Diego.
    Flu vaccine (trivalent inactivated flu vaccine—TIV) has unknown effects on asthmatics. “The concerns that vaccination maybe associated with asthma exacerbations have been disproved with multiple studies in the past, but the vaccine’s effectiveness has not been well-established,” said Avni Joshi, M.D., of the Mayo Clinic in Rochester, MN. “This study was aimed at evaluating the effectiveness of the TIV in children overall, as well as the children with asthma, to prevent influenza-related hospitalization.”
    The CDC’s Advisory Committee on Immunization Practices (ACIP) and the American Academy of Pediatrics (AAP) recommend annual influenza vaccination for all children aged six months to 18 years. The National Asthma Education and Prevention Program (3rd revision) also recommends annual flu vaccination of asthmatic children older than six months.
    In order to determine whether the vaccine was effective in reducing the number of hospitalizations that all children, and especially the ones with asthma, faced over eight consecutive flu seasons, the researchers conducted a cohort study of 263 children who were evaluated at the Mayo Clinic in Minnesota from six months to 18 years of age, each of whom had had laboratory-confirmed influenza between 1996 to 2006. The investigators determined who had and had not received the flu vaccine, their asthma status and who did and did not require hospitalization. Records were reviewed for each subject with influenza-related illness for flu vaccination preceding the illness and hospitalization during that illness.
    They found that children who had received the flu vaccine had three times the risk of hospitalization, as compared to children who had not received the vaccine. In asthmatic children, there was a significantly higher risk of hospitalization in subjects who received the TIV, as compared to those who did not (p= 0.006). But no other measured factors—such as insurance plans or severity of asthma—appeared to affect risk of hospitalization.
    “While these findings do raise questions about the efficacy of the vaccine, they do not in fact implicate it as a cause of hospitalizations,” said Dr. Joshi. “More studies are needed to assess not only the immunogenicity, but also the efficacy of different influenza vaccines in asthmatic subjects.”


May 28, 2009 Posted by | Medicine & Health | | 5 Comments

Russia Fears Korea Conflict Could Go Nuclear

  • The world has entered a period of great economic depression, increasing social unrest and war. This is very much like the period 1929 – 1939 with 1918 Spanish Flu added in. The signs are there for all who wish to see: Cataclysmic change has started. At the end of this period we are under going, it will be an entirely different kind of world. Old assumptions and rules no longer apply. Reuters reports :
    Russia is taking security measures as a precaution against the possibility tension over North Korea could escalate into nuclear war, news agencies quoted officials as saying on Wednesday.
    Interfax quoted an unnamed security source as saying a stand-off triggered by Pyongyang’s nuclear test on Monday could affect the security of Russia’s far eastern regions, which border North Korea.
    “The need has emerged for an appropriate package of precautionary measures,” the source said. “We are not talking about stepping up military efforts but rather about measures in case a military conflict, perhaps with the use of nuclear weapons, flares up on the Korean Peninsula,” he added. The official did not elaborate further.
    North Korea has responded to international condemnation of its nuclear test and a threat of new U.N. sanctions by saying it is no longer bound by an armistice signed with South Korea at the end of the 1950-53 Korean War.
    Itar-Tass news agency quoted a Russian Foreign Ministry official as saying the “war of nerves” over North Korea should not be allowed to grow into a military conflict, a reference to Pyongyang’s decision to drop out of the armistice deal.
    “We assume that a dangerous brinkmanship, a war of nerves, is under way, but it will not grow into a hot war,” the official told Tass. “Restraint is needed.”
    In the past, Moscow has been reluctant to support Western calls for sanctions. But Russian officials in the United Nations have said that this time the authority of the international body is at stake.
    Medvedev told South Korean President Lee Myung-bak, who called him on Wednesday, that Russia was prepared to work with Seoul on a new U.N. Security Council resolution and to revive international talks on the North Korean nuclear issue.
    “The heads of state noted that the nuclear test conducted by North Korea on Monday is a direct violation of a U.N. Security Council resolution and impedes international law,” a Kremlin press release said.


May 28, 2009 Posted by | GeoPolitics | | 2 Comments

North Korea Threatens Military Strike on South Korea

  • The madness that is North Korea is evident. The question is: what is the purpose of all their belligerent behavior? What do they stand to gain? Can they really take on the rest of the western world? Is this another attention seeking posturing for more money? Who knows?
  • Here is an interesting conspiracy theory:
    There is a huge hidden financial war going on. The Illuminati cabal who control the central banks of the western world is fighting for their survivor. Their fiat money, ponzi fractional banking system is collapsing. The challengers to this system is mainly China and Russia. China being the bigger threat to their control of the financial system of the world. China has clearly made moves that threatens the USD system by positioning the Chinese Yuan as the replacement for the USD. If major countries decide to ditch the USD in favor of the Yuan, it will be game over. This satanic cabal control North Korea. Their intent is to use North Korea as a warning and a threat to South Korea and Japan. Should they decide to bail out of the USD and support the Chinese Yuan: It is War !! So, it is all about the money!!

    How much of this is true? Who knows?
  • Bloomberg reports :
    Secretary of State Hillary Clinton said North Korea must face consequences for its “belligerent and provocative behavior” after Kim Jong Il’s regime threatened military action against South Korea.
    Clinton spoke in Washington after North Korea’s official news agency said Kim’s government would no longer abide by the 1953 armistice that ended the Korean War and may respond militarily to South Korea’s participation in a U.S.-led program that would block ships suspected of carrying nuclear weapons or material for export.
    North Korea has continued to ratchet up tension since it tested a nuclear weapon on May 25, drawing international condemnation and the prospect of increased sanctions against the communist nation.
    “The Korean People’s Army will not be bound to the Armistice Agreement any longer,” the official Korean Central News Agency said in a statement today. Any attempt to inspect North Korean vessels will be countered with “prompt and strong military strikes.”
    South Korea dispatched a warship to its maritime border and is prepared to deploy aircraft, Yonhap News reported, citing military officials it didn’t identify. South Korea’s military said it will “deal sternly with any provocation” from the North.
    ‘Calm’ Response
    Still, South Korean President
    Lee Myung Bak ordered his government to take “calm” measures in the face of the threats, his office said in a statement today. Japan’s Chief Cabinet Secretary, Takeo Kawamura, echoed those remarks and called on North Korea to “refrain from taking actions that would elevate tensions in Asia.”
    North Korea routinely issues threats directed at the U.S., South Korea and Japan, warning of military retaliation if they continue to take actions that the country’s leadership characterizes as threats to its security.
    Aggressive Shift
    “This rapid-fire provocation indicates a more aggressive shift in the
    Kim Jong Il regime,” said Ryoo Kihl Jae, a professor at the University of North Korean Studies in Seoul. “Kim is obviously using a strategy of maximum force.”
    North Korea raised the specter of a maritime confrontation. The dispatch by the Korean Central News Agency said North Korea can’t guarantee the safety of ships passing through its western waters. The statement specified five islands controlled by the South that were the site of naval skirmishes in 1999 and 2002.
    “What they are saying is that they will take military action if there is any action taken on behalf of the program such as boarding their ships, stopping and searching and so on,” said
    Han Sung Joo, a former South Korean foreign minister.
    South Korea yesterday agreed to join the Proliferation Security Initiative, or PSI, set up to locate and seize shipments of equipment and materials used to make weapons of mass destruction.
    Reaction to Test
    President Lee had resisted joining the PSI until the nuclear test, even after North Korea fired a ballistic missile on April 5. His predecessor,
    Roh Moo Hyun, had said that joining the initiative would be too provocative.
    North Korea has also fired five short-range missiles in two days in a further display of military defiance. The United Nations Security Council agreed in an emergency session on May 25 to condemn the nuclear test and missile launches.
    Under the July 27, 1953, armistice that ended the Korean War, both sides agreed to “a complete cessation of all hostilities” and pledged to accept the demarcation line that has become the world’s most-heavily mined demilitarized zone.
    In addition to the weapons tests, North Korea may be preparing to reprocess spent fuel rods at its Yongbyon nuclear reactor, the Chosun Ilbo newspaper reported earlier today, citing an unidentified South Korean official. Steam has been rising from the facilities, the newspaper said.


May 28, 2009 Posted by | GeoPolitics | , | 2 Comments

Marc Faber: US Inflation to Approach Zimbabwe Level

  • Marc Faber is right. The amount of Quantitative Easing which the FedRes needs to undertake means guaranteed hyper-inflation. The treasury bond market is collapsing and the market is clearly signalling their worry on the inflation front. Interest rate for the 10 year treasury bond rose to as high as 3.74% from 3.54%. This is an astounding rise in 1 trading day. Within a short span of 5 months the 10 year bond yield has risen 1.3%.
  • Bloomberg reports :
    The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
    Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
    “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
    The global economy won’t return to the “prosperity” of 2006 and 2007 even as it rebounds from a recession, Faber said. Equities in the U.S. won’t fall to new lows, helped by increased money supply, he said. Still, global stocks are “rather overbought” and are “not cheap,” Faber added.
    Faber still favors Asian stocks relative to U.S. government bonds and said Japanese equities may outperform many other markets over a five-year period. “Of all the regions in the world, Asia is still the most attractive by far,” he said.
    Gloom, Doom
    Faber, the publisher of the Gloom, Boom & Doom report, said on April 7 stocks could fall as much as 10 percent before resuming gains. The Standard & Poor’s 500 Index has since climbed 9 percent.
    Faber, who said he’s adding to his gold investments, advised buying the precious metal at the start of its eight-year rally, when it traded for less than $300 an ounce. The metal topped $1,000 last year and traded at $949.85 an ounce at 12:50 p.m. Hong Kong time. He also told investors to bail out of U.S. stocks a week before the so-called Black Monday crash in 1987, according to his Web site.


May 28, 2009 Posted by | Economics | , , , , , , , | 1 Comment

California’s Day of Reckoning is a Warning For Europe

  • The ongoing collapse of California is fascinating to observe but for the real human suffering. Families are getting evicted. Tent cities are rising. Unemployment at an all time high and commercial real estate about to go belly up. What is happening in California will no doubt be replicated across many countries in Europe. The Time UK reports:
    The Golden State is almost bust, but its inhabitants, even if they believe it, do not want to know and they certainly do not want to pay for it. The state has been running huge budget deficits for years; the till in Sacramento, the state capital, is now empty and the last-ditch attempt by Arnold Schwarzenegger, the Governor, to balance the books with a series of tax increases and budgetary shuffles was roundly rejected by voters in referendums a week ago.
    With a $21 billion (£13 billion) deficit and the lowest credit rating of any American state, the choices are few and grim. California cannot hope to borrow such large sums, except at extortionate rates, which leaves the option of massive cuts in public spending – the sacking of thousands of teachers.
    California could run out of cash in a few months. Mr Schwarzenegger has already warned that 5,000 state employees face being fired. The state education budget is in line for a $5 billion cut, alongside the end of funding for parks and the closure of at least one state agency.
    Politicians in Europe will be watching the Californian car crash with fascination and horror. The sight of the world’s favourite American state lurching towards financial Armageddon is not unlike watching an episode of the American television drama Desperate Housewives. You laugh at the outrageous behaviour of the characters, believing that your neighbours could never behave in such an appalling way, until, on reflection, you wonder . . . On Europe’s eastern fringe, there is Hungary, a financial basket-case, its banking system crippled by a private borrowing binge in Swiss francs. Hungary is already supported by the IMF and the European Union has resisted calls for a regional financial rescue package for the former communist states, but even within the eurozone, the financial stress is mounting in Greece, the Irish Republic, Italy and Spain.
    Were a eurozone government to find itself at risk of being unable to pay interest on its sovereign debt, there is no question that fellow member states would have to provide financial support to prevent default. The alternative would be for that state to abandon the euro, float its own currency and allow its economy to implode in what could be rapid devaluation and, ultimately, bankruptcy.
    It is the Argentine scenario, scary stuff, but if America is looking at a financial rescue package for California, the EU must begin to contemplate similar tailspin scenarios for its more precarious member states. Sterling and the gilt market suffered a rude shock last week when Standard & Poor’s, the credit rating agency, gave warning that Britain could lose its AAA rating if government debt rose to a level equal to the country’s gross domestic product.


May 27, 2009 Posted by | Economics | , , , , , , | Comments Off on California’s Day of Reckoning is a Warning For Europe

China Warns Federal Reserve Over ‘Printing Money’

  • The Chinese are caught in a USD trap and they know it. The size of it: US$2T, means it is unlikely they can exit the USD without causing damage to themselves. Their fear and concerns are now palpable. The Telegraph UK reports :
    China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.
    Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”
    “I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.
    The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of “creative destruction”, has been running a fervent campaign to alert Americans to the “very big hole” in unfunded pension and health-care liabilities built up by a careless political class over the years.
    “We at the Dallas Fed believe the total is over $99 trillion,” he said in February. “This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them,” he said.
    His warning comes amid growing fears that America could lose its AAA sovereign rating.


May 27, 2009 Posted by | Economics | , , , , , , | Comments Off on China Warns Federal Reserve Over ‘Printing Money’

Alex Jones on Israeli Lobby And The Zionist

May 27, 2009 Posted by | GeoPolitics | , | 14 Comments

History of The New American Century

  • This is a very good documentary on the real history of America. The country has always used false flag operations to initiate wars for the purpose of the evil ruling elites. These ruling elites have always harboured grand designs of world conquest. Banksters and the MIC (military industrial complex) rule America. America is becoming a corporatist fascist state with a thirst for wars without end.
  • Google Video :
    This film goes in detail through the untold history of The Project for the New American Century with tons of archival footage and connects it right into the present. This film exposes how every major war in US history was based on a complete fraud with video of insiders themselves admitting it. This film shows how the first film theaters in the US were used over a hundred years ago to broadcast propaganda to rile the American people into the Spanish-American War.
    This film shows the white papers of the oil company Unocal which called for the creation of a pipeline through Afghanistan and how their exact needs were fulfilled through the US invasion of Afghanistan. This film shows how Halliburton under their “cost plus” exclusive contract with the US Government went on a mad dash spending spree akin to something out of the movie Brewster’s Millions, yet instead of blowing $30 million they blew through BILLIONS by literally burning millions of dollars worth of hundred thousand dollar cars and trucks if they had so much as a flat tire. “A stunning film.
    It should be seen as widely as possible, in cinemas, bars, clubs, at meetings and, of course, through the internet. I’m sure the film will continue to be a source of debate and political education for many years. Maybe until the war criminals have been brought to trial.” – Ken Loach While Massimo Mazzucco’s first political documentary, GLOBAL DECEIT (2006), focused on the long list of inconsistencies in the official version of the 9/11 attacks,
    THE NEW AMERICAN CENTURY explores the historical, philosophical and economic background that suggests a matrix for such events that is much closer to home than the so-called “Islamic terrorism”. The film provides solid evidence for the true reasons behind the Afghanistan and Iraq wars, whose unfolding is described in chilling detail in a document called “Project for the New American Century”, published in the year 2,000, that seems to have served as the actual blueprint for such dramatic events.
  • See also :
    Major General Smedley Butler – War is a Racket !
    America: From Freedom to Fascism
    America – Why do We Fight ?
    The Plot to Overthrow Franklin D. Roosevelt
    Do Banksters and the Military Industrial Complex Rule the World ?
    What is the Unites States preparing in Pakistan?
    Exposing the Truth on NATO-US Agression against Yugoslavia
    Washington Plans Global NATO To Replace UN


May 26, 2009 Posted by | GeoPolitics, History | , | 18 Comments

Bilderberg’s World Government Agenda Exposed !


May 26, 2009 Posted by | Economics, EndTimes, GeoPolitics | , | 5 Comments