Socio-Economics History Blog

Socio-Economics & History Commentary

Max Keiser: Oligarchies, Bank Holidays, Dollar Collapse… and Hyper-Inflation

  • Max Keiser and Stacy Herbert bring us upto speed on the economic situation. Is China about to insist the US government issues treasuries denominated in Chinese Yuan because they fear the collapse of the USD? Are the green shoots happy talk real? Is the banking crisis really over? Have banks made sufficient loss provisions for their toxic assets?

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August 31, 2009 Posted by | Economics | , , , , , , | Comments Off on Max Keiser: Oligarchies, Bank Holidays, Dollar Collapse… and Hyper-Inflation

Alex Jones: The Militarization of America.

  • Alex Jones goes on the Max Keiser show to talk about the militarization of America. Americans are waking up to the reality that their country is being run by military industrial complex, the medical industrial complex, the prison industrial complex… oligarchies own by the ruling elites who own their government. Dissent is spreading throughout America.

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August 31, 2009 Posted by | GeoPolitics, Social Trends | , | Comments Off on Alex Jones: The Militarization of America.

Doctors And Scientists Condemn Vaccination!

  • Are there real evidence that vaccines does not work as proclaimed by Big Pharma. Listen to the doctors and scientists :
     
    “There is a great deal of evidence to prove that immunisation of children does more harm than good.”
    Dr J Anthony Morris, former Chief Vaccine Control Officer, US Food
    and Drug Administration
     
    “The greatest threat of childhood disease lies in the dangerous and
    ineffectual efforts made to prevent them through mass immunisation.”
    Dr R. Mendelsohn, Author and Professor of Paediatrics (How To Raise A Healthy Child In Spite Of Your Doctor)
     
    “In our opinion, there is now sufficient evidence of immune malfunction following current vaccination programmes to anticipate growing public demands for research investigation into alternative methods of prevention of infectious disease.”
    Dr’s H. Buttram and J. Hoffman (Vaccinations and Immune Malfunctions)
     
    “All vaccination has the effect of directing the three values of the blood into or toward the zone characteristics of cancer and leukemia…Vaccines DO predispose to cancer and leukaemia.”
    Professor L.C. Vincent, Founder of Bioelectronics
     
    “Every vaccine carries certain hazards and can produce inward reactions in some people…in general, there are more vaccine complications than is generally appreciated.”
    Professor George Dick, London University
     
    “Official data have shown that the large-scale vaccinations undertaken in the US have failed to obtain any significant improvement of the diseases against which they were supposed to provide protection.”
    Dr A. Sabin, developer of the Oral Polio vaccine (lecture to Italian doctors in Piacenza, Italy, Decemebr 7th 1985)
     
    “In addition to the many obvious cases of mortality from these practises, there are also long-term hazards which are almost impossible to estimate accurately…the inherent danger of of all vaccine procedures should be a deterrent to their unnecessary or unjustifiable use.”
    Sir Graham Wilson (The Hazards of Immunisation)
     
    “Laying aside the very real possibility that the various vaccines are
    contaminated with animal viruses and may cause serious illness later in life (multiple sclerosis, cancer, leukaemia, etc) we must consider whether the vaccines really work for their intended purpose.”
    Dr W.C. Douglas (Cutting Edge, May 1990)
     
    “The only wholly safe vaccine is a vaccine that is never used”
    Dr James A. Shannon, National Institute of Health, USA
     
    With reference to Smallpox:
     
    “Vaccination is a monstrosity, a misbegotten offspring of error and
    ignorance, it should have no place in either hygiene or medicine…Believe not in vaccination, it is a world-wide delusion, an unscientific practise, a fatal superstition with consequences measured today by tears and sorrow without end.”
    Professor Chas Rauta, University of Perguia, Italy , (New York Medical Journal July 1899)
     
    “Vaccination does not protect, it actually renders its subjects more
    susceptible by depressing vital power and diminishing natural resistance, and millions of people have died of smallpox which they contracted after being vaccinated.”
    Dr J.W. Hodge (The Vaccination Superstition)
     
    “It is nonsense to think that you can inject pus – and it is usually from the pustule end of the dead smallpox victim … it is unthinkable that you can inject that into a little child and in any way improve its health. What is true of vaccination is exactly as true of all forms of serum immunisation, if we could by any means build up a natural resistance to disease through these artificial means, I would applaud it to the echo, but we can’t do it.”
    Dr William Howard Hay (lecture to Medical Freedom Society, June 25th 1937)
     
    “Immunisation against smallpox is more hazardous than the disease itself.” Professor Ari Zuckerman, World Health Organisation
     
    With reference to Whooping Cough:
     
    “There is no doubt in my mind that in the UK alone some hundreds, if not thousands of well infants have suffered irreparable brain damage needlessly and that their lives and those of their parents have been wrecked in consequence.”
    Professor Gordon Stewart, University of Glasgow (Here’s Health, March 1980)
     
    “My suspicion, which is shared by others in my profession, is that the
    nearly 10,000 SIDS deaths that occur in the US each year are related to one or more of the vaccines that are routinely given to children. The pertussis (whooping cough) vaccine is the most likely villain , but it could also be one or more of the others.”
    Dr R Mendelsohn, Author and Professor of Paediatrics (How To Raise A Healthy Child In Spite Of Your Doctor)
     
    “The worst vaccine of all is the whooping cough vaccine…it is responsible for a lot of deaths and for a lot of infants suffering irreversible brain damage..”
    Dr Archie Kalokerinos, Author and Vaccine Researcher (Natural Health Convention, Stanwell Tops, NSW, Australia 1987)
     
    With reference to Polio:
     
    “Many here voice a silent view that the Salk and Sabin polio vaccine, being made of monkey kidney tissue has been directly responsible for the major increase in leukaemia in this country.”
    Dr F. Klenner, Polio Researcher, USA
     
    “No batch of vaccine can be proved to be safe before it is given to
    children”
    Surgeon General Leonard Scheele (AMA Convention 1955, USA)
     
    “Live virus vaccines against influenza and paralytic polio, for example, may in each instance cause the disease it is intended to prevent…”
    Dr Jonas Salk, developer of first polio vaccine (Science 4/4/77 Abstracts)
     
  • See also :
     
    Vaccine-Induced Disease Epidemic Outbreaks: The Engineering of ‘Pandemics’
    Polio surge in Nigeria after vaccine virus mutates
    FlashBack: UNICEF Nigerian Polio Vaccine Contaminated with Sterilizing Agents Scientist Finds
    Dr. Russell Blaylock: What To Do If Force Vaccinated !
    1976 Swine Flu Vaccination Propaganda and The Side Effects
    Dr. Russell Blaylock on 1976 Swine Flu and Current Outbreak
    Dr. Russell Blaylock: Vaccine May Be More Dangerous Than Swine Flu
    Ron Paul: Be Careful of the Rush into the Swine Flu Vaccine. 1976 Swine Flu Vaccine Killed People!
    Swine Flu Jab Link to Killer Nerve Disease: Leaked Letter Reveals Concern of Neurologists over 25 Deaths in America.

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August 31, 2009 Posted by | Medicine & Health | , | 2 Comments

Graphical Evidence Shows Vaccines Didn’t Save Us!

Source: Greg Beattie's excellent book "Vaccination A Parent's Dilemma"

Source: Greg Beattie's excellent book "Vaccination A Parent's Dilemma"

  • Just how effective are vaccines from all these charts? It is obvious. Big Pharma would like us to believe that vaccines are the solution when it is not. In fact it causes many diseases! Vaccination Debate :
      
    The above graphs, based on the official death numbers as recorded in the Official Year Books of the Commonwealth of Australia, are taken from Greg Beattie’s excellent book “
    Vaccination A Parent’s Dilemma” and represent the decline in death rates from infectious disease in Australia. They clearly show that vaccines had nothing to do with the decline in death rates. (Note: Graphical evidence on the decline in death rates from infectious disease for USA, England, New Zealand and many other countries shows the exact same scenario as above).
     
    So what were the true reasons for this decline? From his book ‘Health and Healing’ Dr Andrew Weil best answers it with this statement;
     

    “Scientific medicine has taken credit it does not deserve for some advances in health. Most people believe that victory over the infectious diseases of the last century came with the invention of immunisations. In fact, cholera, typhoid, tetanus, diphtheria and whooping cough, etc, were in decline before vaccines for them became available – the result of better methods of sanitation, sewage disposal, and distribution of food and water.”

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August 31, 2009 Posted by | Medicine & Health | , | 2 Comments

Why Default on US Treasuries is Likely !

  • I hold to the opposite view: the US government will inflate away its debts through seigniorage, monetizing its debts by printing money out of thin air or a formal devaluation of the USD against gold. Refusing to pay big foreign creditors like China is fraught with problems. Won’t China insists on hard assets like real estate…commodities…military hardware..etc.. as payment? Will a formal default lead to war?
     
  • Jeffrey Rogers Hummel makes his case for a deliberate default of US treasuries and thus ‘saving’ the USD :
     
    Almost everyone is aware that federal government spending in the United States is scheduled to skyrocket, primarily because of Social Security, Medicare, and Medicaid. Recent “stimulus” packages have accelerated the process. Only the naively optimistic actually believe that politicians will fully resolve this looming fiscal crisis with some judicious combination of tax hikes and program cuts. Many predict that, instead, the government will inflate its way out of this future bind, using Federal Reserve monetary expansion to fill the shortfall between outlays and receipts. But I believe, in contrast, that it is far more likely that the United States will be driven to an outright default on Treasury securities, openly reneging on the interest due on its formal debt and probably repudiating part of the principal.
      …
    The current financial crisis, moreover, has reinforced the trend toward lower seigniorage. Buried within the October 3, 2008 bailout bill, which set up the Troubled Asset Relief Program (TARP), was a provision permitting the Fed to pay interest on bank reserves, something other major central banks were doing already. Within days, the Fed implemented this new power, essentially converting bank reserves into more government debt. Fiat money traditionally pays no interest and, therefore, allows the government to purchase real resources without incurring any future tax liability. Federal Reserve notes will, of course, continue to earn no interest. But now, any seigniorage that government gains from creating bank reserves will completely vanish or be greatly reduced, depending entirely on the differential between market interest rates on the remaining government debt and the interest rate on reserves. The lower is this differential, the less will be the seigniorage. Indeed, this new constraint on seigniorage becomes tighter as people replace the use of currency with bank debit cards and other forms of electronic fund transfers. In light of all these factors, even inflation well into the double digits can do little to alleviate the U.S. government’s potential bankruptcy.
       ….
    We all know that there is a limit to how much debt an individual or institution can pile on if future income is rigidly fixed. We have seen why federal tax revenues are probably capped between 20 and 25 percent of GDP; reliance on seigniorage is no longer a viable option; and public-choice dynamics tell us that politicians have almost no incentive to rein in Social Security, Medicare, and Medicaid. The prospects are, therefore, sobering. Although many governments around the world have experienced sovereign defaults, U.S. Treasury securities have long been considered risk-free. That may be changing already. Prominent economists have starting considering a possible Treasury default, while the business-news media and investment rating agencies have begun openly discussing a potential risk premium on the interest rate that the U.S. government pays. The CBO estimates that the total U.S. national debt will approach 100 percent of GDP within ten years, and when Japan’s national debt exceeded that level, the ratings of its government securities were downgraded.
       ….
    Predicting an ultimate Treasury default is somewhat empty unless I can also say something about its timing. The financial structure of the U.S. government currently has two nominal firewalls. The first, between Treasury debt and unfunded liabilities, is provided by the trust funds of Social Security, Medicare, and other, smaller federal insurance programs. These give investors the illusion that the shaky fiscal status of social insurance has no direct effect on the government’s formal debt. But according to the latest intermediate projections of the trustees, the Hospital Insurance (HI-Medicare Part A) trust fund will be out of money in 2017, whereas the Social Security (OASDI) trust funds will be empty by 2037.5Although other parts of Medicare are already funded from general revenues, when HI and OASDI need to dip into general revenues, the first firewall is gone. If investors respond by requiring a risk premium on Treasuries, the unwinding could move very fast, much like the sudden collapse of the Soviet Union. Politicians will be unable to react. Obviously, this scenario is pure speculation, but I believe it offers some insight into the potential time frame.
     
    The second financial firewall is between U.S. currency and government debt. It is not literally impossible that the Federal Reserve could unleash the Zimbabwe option and repudiate the national debt indirectly through hyperinflation, rather than have the Treasury repudiate it directly. But my guess is that, faced with the alternatives of seeing both the dollar and the debt become worthless or defaulting on the debt while saving the dollar, the U.S. government will choose the latter. Treasury securities are second-order claims to central-bank-issued dollars. Although both may be ultimately backed by the power of taxation, that in no way prevents government from discriminating between the priority of the claims. After the American Revolution, the United States repudiated its paper money and yet successfully honored its debt (in gold). It is true that fiat money, as opposed to a gold standard, makes it harder to separate the fate of a government’s money from that of its debt. But Russia in 1998 is just one recent example of a government choosing partial debt repudiation over a complete collapse of its fiat currency.
     
    Admittedly, seigniorage is not the only way governments have benefited from inflation. Inflation also erodes the real value of government debt, and if the inflation is not fully anticipated, the interest the government pays will not fully compensate for the erosion. This happened during the Great Inflation of the 1970s, when investors in long-term Treasury securities earned negative real rates of return, generating for the government maybe one percent of GDP, or about twice as much implicit revenue as came from seigniorage. But today’s investors are far savvier and less likely to get caught off guard by anything less than hyperinflation. To be clear, I am not denying that a Treasury default might be accompanied by some inflation. Inflationary expectations, along with the fact that part of the monetary base is now de facto government debt, can link the fates of government debt and government money. This is all the more reason for the United States to try to break the link and maintain the second financial firewall. We still may end up with the worst of both worlds: outright Treasury default coupled with serious inflation. I am simply denying that such inflation will forestall default.
      …
    Still unconvinced that the Treasury will default? The Zimbabwe option illustrates that other potential outcomes, however unlikely, are equally unprecedented and dramatic. We cannot utterly rule out, for instance, the possibility that the U.S. Congress might repudiate a major portion of promised benefits rather than its debt. If it simply abolished Medicare outright, the unfunded liability of Social Security would become tractable.

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

Bank CEO: 1,000 Banks to Fail In Next Two Years

 Vodpod videos no longer available.

  • It will likely be closer to 2000 IMO. CNBC reports :
      
    The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.
     
    “We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They’re smaller companies.”
      …
    “Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”
     

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August 29, 2009 Posted by | Economics | , , | Comments Off on Bank CEO: 1,000 Banks to Fail In Next Two Years

The China Growth Myth Debunked, What Happens When the Credit Bubble Pops?

  • Although, I am not as skeptical about the China growth story as the author below, there is much truth in what he says. Asia is definitely doing much better compared to America or Europe. But this is largely the China effect. Japan is still pretty much in the dumps. However, much of the visible effect of the earlier China US$565B stimulus plan seems to have gone into stock market speculation and real estate speculation. Doesn’t this reminds us of the cause of the collapse of America? There is no chance that China will pull Asia out of this recession by itself.
     
  • Graham Summers opines :
     
    Virtually 95% of all the evidence of economic recovery has stemmed from China in one way or another. Whether it’s the rise in price of commodities (China stockpiling), the global economy (the “China” growth miracle will lead us into a recovery), or even retail numbers (China producers lowering prices in an effort to move inventory), China is linked in one way or another to the “green shoots” nonsense.
      
    Unfortunately for those of us living in reality, the view that China will bring about a new era of growth is a total fraud through and through. The Chinese government, unlike its US counterpart can FORCE China’s financial industry to do anything it says. And China’s government has been screaming “lend, lend, lend!!!”
     
    Indeed, Chinese banks have lent out $1.1 trillion in the first half of 2009: an amount equal to one third of the country’s GDP. Over the same time period, loan-deposit ratios at Chinese banks have only increased from 65% to 66%. Put another way, only the tiniest fraction of the money being lent out has actually gone into deposits.
     
    So where has it gone?
    Well, China’s exports (about 40% of its economy) in July were down 23% Year-over-Year. China’s industrial production is up, but only back to 2001-2002 levels: hardly a sign of major investment.
      
    Meanwhile China property values are EXPLODING. According to Andy Xie formerly of Morgan Stanley, property in China now costs roughly the same per square meter as in the US. The only difference is that your average Chinese worker makes 1/7th as much money as your average US worker.
     
    And then of course, there is the Chinese stock market which exploded higher starting with the Stimulus plan in November.
      
    What I’m trying to say is that China’s “boom” has almost entirely been the result of financial speculation. China’s economy is not growing anywhere near what its “official” numbers claim. Instead, the boom in commodities and the Shanghai Stock Exchange have come from Chinese investors taking out loans and piling into the markets. There are stories of Chinese college graduates taking up day trading instead of looking for jobs.
     
    Will China become the next economic super-power?
    Probably in a decade or so.
    Is China’s economy stronger than the US’s now?
    They’re certainly throwing a LOT more money around relative to GDP.
    Can China transition from an export-focused economy to a standalone entity within a year by pumping hundreds of billions of dollars into its system?
    ABSOLUTELY NO CHANCE WHAT-SO-EVER.
    So what happens when China’s credit bubble pops?
    US stocks finally catch on two weeks later.
      
    … the Shanghai Index ….. rolled over in earnest at the beginning of August. They did a quick bounce last week, but look primed for more trouble in the near future.
     
    Keep your eyes on the Shanghai Index. It lead the US markets up… it will lead them down as well. Whenever the China bubble implodes the US market will collapse like a house of cards.

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August 29, 2009 Posted by | Economics | | Comments Off on The China Growth Myth Debunked, What Happens When the Credit Bubble Pops?

The Militarization of Latin America: Seven US Military Bases in Colombia

  • South America has tremendous amount of natural resources. Many believe that the Amazon jungles contains tremendous amount of oil. See here :
      
    Oil and Gas Production Projects In the Amazon Region – An
    Peru to proceed with oil and gas auctions in the Amazon despite
    Bolivia Amazon oil drilling plan opposed by tribes | Green
     
  • South America produces plentiful agricultural products and has much natural mineral resources. I seriously doubt the reactivation of the dormant US 4th fleet last year, after 58 years, to cover Central and South America was for peace keeping and fight against drug trafficking. War for natural resources is planned.
     
  • Latin American leaders are not naive. They are right to be concerned. Professor Atilio Borón writes :
      
    The UNASUR summit in Bariloche, Argentina will have to face two grave problems weighing heavily on Latin America: the military coup in Honduras and the militarization of the region as a result of the installation of not one but seven U.S. military bases in Colombia.     
     
    In regards to the first problem, UNASUR ought to demand consistency from Barack Obama with respect to his statements in support of a new era of inter-American relations.  As has been emphasized on numerous occasions, the coup is a test balloon to check the reactions of the peoples and governments of the region.  And that it happened in Honduras is precisely because that is the country most intensely subjected to the ideological influence and political dominance of Washington.
      ….
    We know that Obama is not very well informed about what his military and civilian subordinates do, not to mention his intelligence services.  But he ought  know, because it is so basic, that the U.S. has been intervening in Honduras since 1903, the year in which for the first time U.S. Marines landed in that country to protect North American interests in a moment of political crisis.  In 1907, on the occasion of war between Honduras and Nicaragua, U.S. troops were stationed for three months in the cities of Trujillo, Ceiba, Puerto Cortes, San Pedro Sula, Laguna, and Choloma.  In 1911 and 1912 they repeated the invasions, in the later case to prevent the expropriation of a railroad in Puerto Cortes.  In 1919, 1924, and 1925 imperialist expeditionary forces again invaded Honduras, always with the same pretext – protect the lives and property of North American citizens residing in the country.  But the largest invasion occurred in 1983 when, under the direction of a sinister figure, Ambassador John Negroponte, the huge base of operations was established from which the U.S. launched its reactionary offensive against the Sandinista government and the Salvadoran Farabundo Marti guerrilla movement.  Obama can not ignore this nefarious history and ought to know that the coup against Zelaya was only possible due to the acquiescence of his government.  What is being asked is that the U.S. stop its intervention, that it withdraw its support for the coup government, the only thing keeping it in power, and thereby facilitate the return of Zelaya to Tegucigalpa.  The White House has at its disposal many economic and financial tools with which to discipline its ally.  If it does not do so it because it does not want to, and the governments and peoples of Latin America will reach their own conclusions.
     
    In relation to the second problem, the U.S. bases in Colombia, the following must be said.  First of all, the U.S. empire does not maintain 872 bases and military missions spread across the length and width of the planet so that its troops can experience the delights of multiculturalism or breathe fresh air of life.  It maintains them, at enormous cost, Noam Chomsky has said on numerous opportunities, because they are the principal instrument in a plan of global domination comparable only to that which obsessed Adolf Hitler in the 1930s.  To think that those troops and weapons systems are based in Latin America for some reason other than to insure the territorial and political control of a region that experts consider the richest on the planet in terms of its natural resources – water, energy, biodiversity, minerals, agriculture, etcetera – would be unforgivably stupid.  These bases are the front-line of a military aggression that may or may not occur today or tomorrow, but will certainly occur when the imperialists consider it convenient.  For this reason, UNASUR ought to forcefully reject their presence and demand the suspension of the installation of these bases.  And furthermore, it should make clear that this is not an “internal matter” of Colombia – no one in their right mind can invoke rights of national sovereignty to justify the installation in their territory of troops and military equipment which can only bring destruction and death to its neighbors.  During the 30 year that Hitler rearmed Germany, the U.S. and its allies screamed to the high heavens, knowing that the next step would be war, and they were right.  Why should it be any different now? 
     
  • Not only is war planned for Latin America, my suspicion is that it is also planned for Africa. It is easier for a black president to lead America into war in Africa I suppose. The 4th world empire is taking shape. It is militarizing America, to use it to conquer the world for the New World Order, One World Government and Global Police State. 
     
    AFRICOM: The Pentagon’s First Direct Military Intervention In Africa
    ….But in the post-World War II period there has only been one direct American military action in Africa, the deadly 1986 air strikes against Libya in April of 1986, Operation El Dorado Canyon.
     
    While conducting wars, bombings, military interventions and invasions in Latin America and the Caribbean, Asia, the Middle East and recently Southeastern Europe over the past half century, the Pentagon has left the African continent comparatively unscathed. That is going to change after the establishment of the United States Africa Command on October 1 of 2007 and its activation a year later.
     
    The U.S. has intensified military involvement in Africa over the past seven years with such projects as the Pan Sahel Initiative (PSI), launched by the State Department but which deployed US Army Special Forces with the Special Operations Command Europe to Mali and Mauritania among other locations. U.S. military personnel are still engaged in the counterinsurgency wars in Mali and Niger against Tuareg rebels.
     
    The Pan Sahel Initiative was succeeded by the Trans-Saharan Counterterrorism Initiative (TSCTI) in late 2004 which has American military personnel assigned to eleven African nations: Algeria, Burkina Faso, Libya, Morocco, Tunisia, Chad, Mali, Mauritania, Niger, Nigeria and Senegal. 
     
    The Trans-Saharan Counterterrorism Initiative was formally launched in June of 2005 with the deployment of 1,000 American troops, among them Green Berets, in Operation Flintlock 05 in North and West Africa to engage with counterparts from seven nations: Algeria, Chad, Mali, Mauritania, Niger, Senegal and Tunisia.
     
    Until their transfer to the Africa Command (AFRICOM) all 53 nations on the continent except for those in the Horn of Africa (assigned to Central Command) and the island nations of Madagascar and the Seychelles in the Indian Ocean (handled by Pacific Command) were within the area of responsibility of the  European Command (EUCOM), whose top commander is simultaneously the Supreme Allied Commander of the North Atlantic Treaty Organization (NATO).
     
    As such the past two EUCOM and NATO commanders, Marine General James Jones (2003-2006) and Army General Bantz John Craddock (2006-June, 2009), were the most instrumental in setting up AFRICOM.
     
  • See also :
     
    The Secret Government
    John Perkins: The Secret History of the American Empire
    John Perkins: The CIA & Chiquita Inc Engineered Coup in Honduras?
    Confessions of an Economic Hit Man – John Perkins
    Latin American Leaders Oppose US Military Interference
    Hugo Chavez Warns of War in South America!
    Webster Tarpley – What Obama & The Globalist Will Do Next !
    Obama – Wars on a Greater Scale!
    Kucinich: ‘Another $106 billion and all we get is a lousy war’
    Major General Smedley Butler – War is a Racket !
    America: From Freedom to Fascism
    America – Why do We Fight ?
    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
    Confessions of an Economic Hit Man – John Perkins
    History of The New American Century
    Pentagon Preparing For War With The Enemy: Russia
    World is on the Brink of Disaster! On the Path to World War 3 ?

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August 29, 2009 Posted by | GeoPolitics, History | , , , | 15 Comments

Celente: The 2nd American Revolution Has Begun!

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August 29, 2009 Posted by | Economics | , , | Comments Off on Celente: The 2nd American Revolution Has Begun!

A Shocking Fall 2009 Economic and Monetary Collapse?

Government expenditure is surging and revenue collapsing. This is a recipe for bankruptcy!

Government expenditure is surging and revenue collapsing. This is a recipe for bankruptcy!

  • Although, it is hard to assess the exact time the next collapse will come, I don’t think it will be like 2-3 years into the future. Crystal ball reading is always difficult. But the fundamental economic reasons behind an economic collapse is seldom in doubt. In this most excellent article by Egon von Greyerz of Matterhorn Asset Management, he does a lucid job in explaining what I see also. We are in agreement over global monetary collapse driven by the USD collapse, economic collapse and the price of gold will rocket!
     
    The autumn of 2009 will be full of shocking surprises in the banking sector, in financial markets and in the world economy.  The events that we outlined in our previous newsletter, “The Dark Years Are Here” are going to start unfolding. There will also be shocking falls in stockmarkets, in the dollar and in bond markets. But these falls will create major opportunities for investors which we will also discuss.
       
    The syndrome of hope and false expectations
    Some readers might feel that we are prophets of doom and that there is only gloomy news coming out of Matterhorn Asset Management. For people who want only good news we suggest that you listen to politicians or read the newspapers or your average stockbroker’s forecast. This is where you find the good news. But if you do listen to these people, remember that virtually nobody warned you about the events in the last couple of years, and that today most of these people are saying that the worst is over. And this is also what stockmarkets are telling us, isn’t it? These “optimists” whether they are politicians, bankers or from the media all make their living based on good news and this is why they will continually tell you lies and never warn you about the risks.
     
    Investments are all about managing risk and our responsibility is to understand risk and warn investors when risk is unacceptably high. We have done this for many years and we will continue to do it. Sadly most investors base their investment decisions on hope. When government, private and corporate debt explodes the risk to the economy becomes very high.  And when bank credit  is growing exponentially and bank leverage is 50 times or more, this is very high risk. When derivatives reach $ 1 quadrillion with virtually no reserves against this astronomical exposure then investors should run for cover.
     
    … In the next few years the leverage will hit back with a vengeance and the deleveraging of asset bubbles and credit bubbles will have a devastating effect on the world economy. This is will lead to a massive deflation of assets and credit. Governments will continue to print money at an accelerating rate. Eventually the money printing will lead to a collapsing currency creating  hyperinflation in many countries and especially the US and the UK. But even with hyperinflation many assets such as real estate and stocks will decline in real terms.
      
    Governments living in cloud cuckoo land
    Never before have governments in the world expanded deficits and credit to the extent that we are seeing now. In 2009-10 government budget deficits will be at least $5.5 trillion. This amount needs to be raised by all the countries running deficits. The US, of course,  has the biggest black hole and will need at least $3 trillion during this period. But these sums, which are unlikely to be sufficient, are just budget deficits and do not take into account the likely rescues of banks, other financial institutions, corporate failures, pension funds, insurance companies, cities, states, local government etc.
     
    The US has lent or committed $13 trillion to prop up its collapsing financial system and economy. Virtually none of these funds have been written off yet and there will be a lot more to come in the next couple of years. It is still our view that the total cost to the US alone of the current crisis will be at least $25-30 trillion.
     
    And where is the money coming from? …. Governments believe that they have found an unlimited source to prosperity. … Especially the US and UK governments, being the biggest culprits,  believe that they can  manufacture endless amounts of money and that this will create eternal wealth for their economies.
     
    How do they do it? Governments use fancy terms like Quantitative Easing in order to confuse the people. In simple terms it means borrowing money that doesn’t exist or just printing money. To borrow money that doesn’t exist must be fraudulent and both against the law and the constitution. Yes of course the government is breaking the law and the constitution. But not only that , they are actually stealing money from the people, money  that the people doesn’t have,  but that they will have to work for generations to pay off.
     
    But governments are not just creating money out of thin air. They are also looking after their affairs better than any other group in the economy. The only net increase in jobs in the last few years has been in the government sector, both in the US and the UK. Whilst the rest of the economy is suffering and cutting down, government is adding hundreds of thousands of jobs. Also pay and pensions in government jobs are superior to the private sector. So the main growth sector in the economy in the last few years has been the government sector that produces nothing but consumes 50% of GDP. No wonder we are all in trouble.
     
    Government spending has gone from 10% of GDP in 1932 to almost 50% in 2008
    Even more intriguing  is of course that the financial institutions that caused the crisis, mainly through greed, are the ones that benefited from the bubbles they helped to create.  They are also the beneficiaries of the trillions of dollars that governments have printed to rescue the system. This is like giving somebody who has robbed a bank the reward money.
     
    This is Robin Hood in reverse, with  governments robbing from the poor in order to reward the rich for their misdeeds.  The poor, who are likely to get much poorer in the next few years, are unlikely to accept their fate without a fight. With the next stage in the downturn, due to start in the autumn, social unrest will grow and it could easily get out of hand in the next 2-3 years.
      
    US Dollar UK Pound (and many other currencies) will have major falls
    Both the US and UK governments have for years printed their currencies. From 2007 when the current crisis started the printing of dollars and pounds have accelerated. In the case of the US dollar we are looking at trillions of new dollars. So when money is created which has only air behind it and no assets or substance, is this money not worthless? Yes of course it is but because governments and financial institutions worldwide have benefited from a strongish dollar, no one has said that the emperor is naked although everyone know he is.
     
    Supporting the dollar has also benefited the Chinese who have built up their own industrial base by financing the US deficits and excesses. But the Chinese with over $ 2 trillion in reserves of which as much as 2/3 could be in US dollars have now said in their veiled but very clear language: “The Emperor has no clothes”. The Chinese have now told the US to clean up their act but the Chinese know and the Americans know that their is no chance whatsoever that the US can reduce their deficits and dollar printing.
     
    Therefore the dollar is living on borrowed time and as we outlined in last month’s newsletter “The Dark Years Are Here”, the autumn of 2009 will see a precipitous fall of the dollar. It will be relentless and greater than anyone can imagine. There is always a day of reckoning when the law of supply and demand is out of kilter and that day is now here. The move will be unexpected by many and this will mean that everyone will run for the exit and dump their dollars thus exacerbating the fall.
     
    The situation for the pound is not much  better due to the dire straits of the UK economy. The pound may not fall as much as the dollar and probably not at exactly the same time. Normally a currency is attacked one at a time so we might first see the dollar moving and then the pound. But the pound has started to move down against the Euro and Swiss Francs in August and it is also possible that it will fall with the dollar against other currencies.
      …
    Gold (and silver) – a spectacular rise
    Investors who understand markets, know that if something has a major fall, something else will have a major rise. All you need to do is to turn the chart upside down. The major beneficiary of the dollar fall will be gold (and silver). Gold has all the advantages that the dollar has not:
     
    – Gold can’t be printed
    – Gold has no debt attached to it
    – Gold has represented real money for 5,000 years whilst no paper currency has ever survived in tact throughout history
     
    – Gold has limited supply – Gold production is declining and demand increasing
    – Total annual mine production of gold is only $75 billion per annum which is 0.05% of world financial assets
    – Total increase in debt in 2009 in the US alone will probably be in excess of $5 trillion against an increase in gold of $75 billion – a 66 to 1 ratio
     
    – Central banks which have been net sellers are becoming net buyers of gold
    – China and Russia are major buyers of gold and only declare increases in holdings with long delays
    – Retail demand of gold in China and India is very high – These are nations who understand the virtue of gold as savings
     
    With world debt probably increasing by as much as $7.5 trillion in 2009, there will be at least 100 times more paper money created than new gold produced. It can’t be difficult to forecast which money is likely to appreciate the most in the next few years – paper money with an unlimited supply or real money, GOLD, with very limited supply.
     
    Short term gold is being suppressed by governments with the help of their bullion bank friends. Also, we would not be surprised if central bank gold has been lent to the market via the bullion banks. There has been no independent full audit of the gold in Fort Knox for decades.  But we are convinced that gold cannot be held down for much longer. In the next few weeks gold will pass the $1,000 mark. Once firmly above $1,000 gold will move swiftly to probably $1,400-$1,600 in 2009. Even without the effects of hyperinflation gold will go up several times from current levels in the next couple of years…..  to continue reading click here!  

The fall of the dollar and the pound and the fall in US and UK government bonds (creating higher interest rates) will happen this autumn and will be much more dramatic than most people can imagine.

The fall of the dollar and the pound and the fall in US and UK government bonds (creating higher interest rates) will happen this autumn and will be much more dramatic than most people can imagine.

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

Australia: Swine Flu Vaccine Plan in Disarray. Insurers May not Cover Doctors!

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August 28, 2009 Posted by | Medicine & Health | , | Comments Off on Australia: Swine Flu Vaccine Plan in Disarray. Insurers May not Cover Doctors!

Davidowitz: US Consumers, Retailers in a “Death Spiral”

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  • Howard Davidowitz tells it like it is. The MSM propaganda machine is in the business of selling happy optimistic news. No matter how bad things are, the MSM will always put a positive spin on it to water it down. No one likes bad news. This is psychology. You keep telling people bad news, they will turn you off. But the reality is: if you don’t allow really bad situation to come to light, the feedback is not there and people don’t take precautions to protect themselves. And after much propaganda, the propagandists end up believing in their own lies. Does it mean everything is doom? Not at all. There is always someone profiting when the majority is suffering.
     
  • Tech Ticker reports :
      
    Retail maven Howard Davidowitz paid another visit to Tech Ticker this week. And despite signs of improvement in consumer confidence and retail stocks rising, Davidowitz is steadfast in his belief the consumer is dead. Rather than summarize, let me just highlight some of his best one-liners:
     
    On retail:
    “The retail business is terrible… It’s almost all negative.”
    – “We’re going to close hundreds of thousands of stores.” 
     
    On the consumer:
    “They’re still over leveraged, they’re losing jobs, their credit has been cut back.”
     
    On America:
    “We are in the tank forever. As a country we are out of control, we’re in a death spiral.” 
     
    On the stock market:
    “We’re in terrible shape. That’s what the fundamentals tell me. I can’t explain the stock market.”
     
    But it’s not all gloom and doom, believe it or not. Davidowitz, who runs a retail consulting firm Davidowitz and Associates, thinks certain discount retailers, grocers, drug store chains and a select few department stores can survive and prosper in the future.

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August 28, 2009 Posted by | Economics | , , , | Comments Off on Davidowitz: US Consumers, Retailers in a “Death Spiral”

World’s Stocks Controlled by Select Few!

  • The world’s wealth has been in the hands of a few families for the past few centuries. These banking families hold immense power. They are smart enough to remain in the shadows and hide their wealth in many cross holding companies which in turn own many companies which in turn….etc.. They also control many ‘charitable’ tax free foundations. The key here, about these foundations, is tax free and not charitable. He who controls the money rules the world. Things are seldom what they seem! Lauren Schenkman writes :
      
    WASHINGTON — A recent analysis of the 2007 financial markets of 48 countries has revealed that the world’s finances are in the hands of just a few mutual funds, banks, and corporations. This is the first clear picture of the global concentration of financial power, and point out the worldwide financial system’s vulnerability as it stood on the brink of the current economic crisis.
     
    A pair of physicists at the Swiss Federal Institute of Technology in Zurich did a physics-based analysis of the world economy as it looked in early 2007. Stefano Battiston and James Glattfelder extracted the information from the tangled yarn that links 24,877 stocks and 106,141 shareholding entities in 48 countries, revealing what they called the “backbone” of each country’s financial market. These backbones represented the owners of 80 percent of a country’s market capital, yet consisted of remarkably few shareholders.
     
    “You start off with these huge national networks that are really big, quite dense,” Glattfelder said. “From that you’re able to … unveil the important structure in this original big network. You then realize most of the network isn’t at all important.”
     
    The most pared-down backbones exist in Anglo-Saxon countries, including the U.S., Australia, and the U.K. Paradoxically; these same countries are considered by economists to have the most widely-held stocks in the world, with ownership of companies tending to be spread out among many investors. But while each American company may link to many owners, Glattfelder and Battiston’s analysis found that the owners varied little from stock to stock, meaning that comparatively few hands are holding the reins of the entire market.
     
    “If you would look at this locally, it’s always distributed,” Glattfelder said. “If you then look at who is at the end of these links, you find that it’s the same guys, [which] is not something you’d expect from the local view.”
     
    Matthew Jackson, an economist from Stanford University in Calif. who studies social and economic networks, said that Glattfelder and Battiston’s approach could be used to answer more pointed questions about corporate control and how companies interact.
     
    “It’s clear, looking at financial contagion and recent crises, that understanding interrelations between companies and holdings is very important in the future,” he said. “Certainly people have some understanding of how large some of these financial institutions in the world are, there’s some feeling of how intertwined they are, but there’s a big difference between having an impression and actually having … more explicit numbers to put behind it.”
     
    Based on their analysis, Glattfelder and Battiston identified the ten investment entities who are “big fish” in the most countries. The biggest fish was the Capital Group Companies, with major stakes in 36 of the 48 countries studied. In identifying these major players, the physicists accounted for secondary ownership — owning stock in companies who then owned stock in another company — in an attempt to quantify the potential control a given agent might have in a market.
     
    The results raise questions of where and when a company could choose to exert this influence, but Glattfelder and Battiston are reluctant to speculate. “In this kind of science, complex systems, you’re not aiming at making predictions [like] … where the tennis ball will be at given place in given time,” Battiston said. “What you’re trying to estimate is … the potential influence that [an investor] has.”
     
    Glattfelder added that the internationalism of these powerful companies makes it difficult to gauge their economic influence. “[With] new company structures which are so big and spanning the globe, it’s hard to see what they’re up to and what they’re doing,” he said. Large, sparse networks dominated by a few major companies could also be more vulnerable, he said. “In network speak, if those nodes fail, that has a big effect on the network.”
     
    The results will be published in an upcoming issue of the journal Physical Review E.

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August 28, 2009 Posted by | Economics | 9 Comments

Peter Schiff: There is NO Recovery Coming! The Most Dangerous Asset is the Dollar!

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

Exposed: The Swine Flu Hoax!

  • This article explains why you should not fall for the swine flu vaccine con job! Don’t be taken for a ride and don’t let your love ones be exposed to this harmful vaccine! Can you really trust government officials’ propaganda? Can you trust the MSM’s fear mongering? Please spread this information. Let people understand the real situation and make an informed decision. Andrew Bosworth traces the history of flu :
      
    The alarm has been sounded. Politicians, pharmaceutical executives and media conglomerates would have us believe that a 1918-style pandemic is a real threat. The 1918 pandemic, however, evolved out of conditions unique to World War I, for four specific reasons. 
      ….
    The 1918 flu virus became pandemic because, during World War I, the normal host-pathogen relationship was abandoned when millions of young men crowded into geographical confinement. In World War I, a flu virus was presented with a seemingly limitless number of hosts – almost all young, male, and with compromised immune systems. Unconstrained and unchecked by the usual habits of human behavior, the virus went rogue.
     
    Flu viruses are smart, but they are not suicidal: if the host becomes extinct the virus will become extinct too. The evolutionary strategy, from the virus’s perspective, is to stay one step ahead of the immune systems of both humans and animals – but not two steps ahead. The flu virus aims to infect and reproduce without killing a critical mass of the hosts, of the herd, so the virus’s virulence is ameliorated after it becomes fatal for people on the margins of the host population – the weak and the elderly. World War I disrupted this synchronized, co-evolutionary relationship between flu viruses and human populations.
     
    No flu since 1918 has been strong enough to produce, in millions of people, a “cytokine storm,” which is an immunological over-reaction leading to pulmonary edema (the lungs filling with fluid) – the curse of those with the strongest immune systems, normally between 20 and 40 years of age.
     
    In normal flu pandemics, even in severe ones, the flu virus kills a portion of the weak and elderly. This appears to be the case in 1837 for Germany and in 1890 for Russia, though reliable medical evidence is scarce. It was certainly true for the Asian flu of 1957 and the Hong Kong flu of 1968, neither of which were significantly fatal for young adults. The flu 1976–1977 has been exposed as a boondoggle, a fraud, with far more people dying of the vaccine than from the flu itself.
     
    Indeed, 1918 was an aberration. Since then, no flu has scythed away so many people: some 500,000 Americans and anywhere between 25–50 million people worldwide in three waves: first in March, then in August (the deadliest wave), and in then again in November of 1918, lasting into the spring of 1919.
     
    The origins of the 1918 pandemic can be traced back to the trenches of the Western Front in 1915, 1916, and 1917 – to the world’s first large-scale industrial and international war. There was no other cause: If WWI had not been fought, it is inconceivable that the 1918 flu pandemic would have been so severe. Today, in 2009, absent the conditions of WWI, it is preposterous for political and medical authorities to claim that the swine flu is a menace to society.
     
    The Mysterious Origins of the H1N1 “Swine Flu” Virus
    If the current H1N1 swine flu virus does become abnormally lethal, there would be three leading explanations: first, that the virus was accidentally released, or escaped, from a laboratory; second, that a disgruntled lab employee unleashed the virus (as happened, according to the official version of events, with the 2001 anthrax attack); or third, that a group, corporation or government agency intentionally released the virus in the interests of profit and power.
     
    Each of the three scenarios represents a plausible explanation should the swine virus become lethal. After all, the 1918 flu virus was dead and buried – until, that is, scientists unearthed a lead coffin to obtain a biopsy of the corpse it contained. Later, researchers similarly disturbed an Inuit woman buried under permafrost.(3)
     
    The US Armed Forces Institute of Pathology, with a scientist from the Mount Sinai School of Medicine, then began to reconstruct the 1918 Spanish flu. Had Iran or North Korea engaged in Frankenstein experiments (complete with ransacking graves) to reverse engineer the 1918 virus the US and the UK would have gone ballistic at the UN Security Council.
     
    Interestingly, numerous doctors and scientists suspect that the swine flu virus was cultured in a laboratory. A mainstream Australian virologist, Adrian Gibbs – who was one of the first to analyze the genetic properties of the 2009 swine flu – believes that scientists accidentally created the H1N1 virus while producing vaccines. And Dr. John Carlo, Dallas Co. Medical Director, “This strain of swine influenza that’s been cultured in a laboratory is something that’s not been seen anywhere actually in the United States and the world, so this is actually a new strain of influenza that’s been identified.”(4)Because of this, the 2009 swine flu virus – which has yet to be detected in any animals – has a rather suspicious pedigree.
     
    The Propaganda Campaign
    Across the mainstream media, reports announce one swine flu death after another (even though ordinary flu kills about 35,000 Americans each year). Upon closer scrutiny of what passes for journalism, the victims have “underlying health problems,” or “a common underlying health condition,” or “significant medical conditions.”
     
    One news headline even blared: “Swine flu mother dies after giving birth, leaving her premature baby fighting for life,” and only later, buried deep in the story underneath, did it explain that she had “other medical problems” which included being confined to a wheelchair because of a serious car accident.
     
    Citizens the world over are increasingly skeptical of hyped headlines followed by smaller-print caveats. They are uneasy with the effort to create “doublethink” – a term coined by George Orwell in 1984 and a reference to holding two contradictory ideas in one’s mind simultaneously, paralyzing critical thought.
     
    The media has never been in the habit of reporting the cases of people who, for no known reason, die of the flu. Out of the 35,000 Americans who die each year from flu-related illnesses, some are bound to be relatively young and healthy. It happens. This year, however, their stories are front-page news.
     
    More recently, news reports now claim that the H1N1 swine flu can affect people in the lungs and lead to pneumonia. This, however, is what separates the flu from the common cold in the first place; and this is why tens of thousands of elderly people die of flu-related symptoms each year. Fox News even claimed that “this one morphs and mutates and comes back in different ways…,” (like all flu viruses). In short, the media now uses the flu’s own ordinary symptoms to fuel fear.
     
    Fortunately, a growing wave of online media challenges the propaganda. Back in 1976, there were no rival voices, and the Center for Disease Control’s manipulative television commercials dominated the airwaves. Fortunately, as a testament to official shamelessness, these videos are now archived and searchable on the Internet under the title of “1976 Swine Flu Propaganda.”
     
    Now, like then, the US government’s pandemic policy alternates between the ridiculous and the repugnant. The government’s flu website is revealing. First, the historical section on the 1918 virus is intellectually dishonest, making absolutely no link between the unique conditions of World War I and the flu pandemic; instead, the site propagates the erroneous notion that this virus came out of the blue.(5)
     
    Second, the site announces an absurd American Idol-style video contest: “Create a Video About Preventing or Dealing With the Flu & Be Eligible to Win $2500 Cash!” (Congress has earmarked 8 billion dollars for swine flu prevention and can only offer $2,500 to the proles – or, rather, to the one prole who, rising above mediocrity, best parrots the Party Line.)
     
    And third, the site encourages the use of Twitter to “stay informed…” There is something mildly disturbing about the US federal government promoting Twitter as a form of resistance to foreign authoritarianism, while, simultaneously, using social networking to further federalize and protect the abuse of power at home.
     
    1976 + 1984 = 2009
    In sum, it appears that the 2009 swine flu pandemic will not be 1918. It might be a 1976-style hoax, however, serving profit and power – with a bit of Orwell’s 1984 thrown in for good measure.

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August 28, 2009 Posted by | Medicine & Health | , | 4 Comments