Socio-Economics History Blog

Socio-Economics & History Commentary

BanksterGate: Geithner’s Cover-Up of the AIG Bailout!!

  • Bankergate: Emails Expose Criminal Financial Dictatorship At Work 
      
    Explosive emails released last week could see Treasury secretary Timothy Geithner become embroiled in criminal charges for his role in a cover up that exposes the monumental criminality behind the $182.3 billion bailout of American International Group Inc.
     
    In November and December 2008, The Federal Reserve Bank of New York instructed the bailed out AIG to hide from the public details regarding payments the insurance giant made to banks, including Goldman Sachs Group Inc. and Societe Generale SA.
     
    Using Fed secured taxpayer bailout money, AIG paid several banks 100 percent of the face value of credit-default swaps, as other financial institutions were negotiating deep discounts for the unregulated paper assets that do not have to be backed by cash. The decision to pay the banks in full may have cost AIG, and therefore taxpayers, at least $13 billion over the odds.
     
    The “backdoor bailout” of the banks, as it has been dubbed was exposed in March 2009 after the SEC challenged AIG’s filing, however, e-mails obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee, have re ignited the situation as they conclusively expose a collusion between AIG and the Fed to deceive the public.
     
    The e-mails between company and regulator, released last Thursday, show that The New York Fed crossed out reference to the payments and that AIG also omitted the details when the Securities and Exchange Commission filing was made public on Dec. 24, 2008.
     
    The emails, the content of which are highlighted in this Bloomberg News article, also show that the Fed wanted  numerous other details about the AIG bailout withheld or delayed from public oversight.
     
    “It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”

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January 12, 2010 Posted by | Economics | , , , , , | Comments Off on BanksterGate: Geithner’s Cover-Up of the AIG Bailout!!

Drug Firms Made ‘False H1N1 Claims’!

January 12, 2010 Posted by | Medicine & Health | , | Comments Off on Drug Firms Made ‘False H1N1 Claims’!

Aspartame: Sweet Misery, A Poisoned World !

  • Aspartame is a slow acting poison. It causes among other things: brain tumors. It’s side effects are in the hundreds. It damages your health. One component of Aspartame is Methyl Esther which breaks down to methyl alcohol and formaldehyde. Formaldehyde is a poison. Unfortunately, corruption is so endemic in high places that this poisonous chemical: Aspartame, was approved for consumption. It is found in countless products like: Diet Sodas, artificial sweeteners, sugar free chewing gums…etc. This is the documentary the producers of aspartame and diet soft drinks do not want you to see. Hard evidence are provided by specialists!
     
    Diet Sodas and Cancer
    Aspartame breaks down to methanol and formaldehyde. Yummy! 
    Aspartame—just the amount in one can of diet soda—produces an excessive amount of the carcinogen formaldehyde in your body. Aspartame is the chemical in Equal® and NutraSweet® and is the sweetener in most diet sodas. Formaldehyde isn’t listed in the ingredients; your body produces it as you digest the soda. When you drink a diet soda, your body breaks down the aspartame into aspartic acid, phenylalanine, and methanol, one molecule of each.
     
    – aspartic acid is harmless; it’s broken down into alanine, an amino acid, and oxaloacetate, an organic compound
    – phenylalanine, an allergen to some people, is broken down into mostly tyrosine, an amino acid, and to a lesser extent into phenylethylamine, an alkaloid, and phenylpyruvate.
    – methanol (wood alcohol) is broken down into formic acid (the toxin in ant bites) and formaldehyde which is a carcinogen.
     
    Each diet soda with aspartame produces about 20 mg of methanol. The methanol breaks down further into 6 mg of formaldehyde which is three times the daily EPA limit. It’s 30 times the limit in New Jersey, 100 times the limit in California, and 300 times the limit in Maryland.
     
    The formaldehyde from each can of diet soda is more than the legal limit of this dangerous chemical.
    Dr. Devra Davis, the director of the Center for Environmental Oncology at the University of Pittsburgh Cancer Institute, says that all scientific evidence about aspartame has been negative for human health, and it wasn’t until Donald Rumsfeld left government and became the CEO of G.D. Searle, the manufacturer, that the government approved aspartame for use in human food and drinks. Interviewed by the Pittsburgh Post Gazette, when asked about Donald Rumsfeld’s connection to the aspartame approval, Dr. Davis stated:
      
    “I don’t know what his precise role was. I only know that prior to his becoming CEO
     of Searle, aspartame had been turned down by every scientific group reviewing its safety and that the General Counsel of the FDA asked the U.S. Attorney’s office to convene a grand jury to decide whether to indict the producer for knowingly misrepresenting findings… The grand jury never acted. Those working on this for the government went to work for Searle. The day after Reagan’s inauguration, the company resubmitted a request for approval. Within five months of Reagan’s presidency, aspartame was approved.”
     
    In her new book,
    The Secret History of the War on Cancer, Dr. Davis describes the manipulation of the US government by the chemical industry—not only with respect to aspartame but many other chemicals that touch the daily lives of the citizens.
     
    Formaldehyde isn’t the only nasty chemical in diet soda. Don’t drink your diet soda if it has been warmed by the sun for a while. According to a 2006 article in the Albuquerque Journal, the heat and light cause the ascorbic acid and the benzoate preservatives in soda to form benzene, another carcinogen that produces leukemia and other blood diseases.

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January 12, 2010 Posted by | Medicine & Health, Social Trends | | 1 Comment

America Slides Deeper Into Depression As Wall Street Revels!

  • The recession has ended but the depression has begun. Profligate money printing by the FedRes has led to stock price inflation. Banks are not lending, the real economy is contracting. Don’t believe all the propaganda economic statistics the snakes send out. All the stimulus are essentially to line their own pockets: 80% for their benefit 20% for the sheeple. The Telegraph UK reports:
     
    December was the worst month for US unemployment since the Great Recession began.
    The labour force contracted by 661,000. This did not show up in the headline jobless rate because so many Americans dropped out of the system. The broad U6 category of unemployment rose to 17.3pc. That is the one that matters.
     
    Wall Street rallied. Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism.
      
    The home foreclosure guillotine usually drops a year or so after people lose their job, and exhaust their savings. The local sheriff will escort them out of the door, often with some sympathy –– just like the police in 1932, mostly Irish Catholics who tithed 1pc of their pay for soup kitchens. Realtytrac says defaults and repossessions have been running at over 300,000 a month since February. One million American families lost their homes in the fourth quarter. Moody’s Economy.com expects another 2.4m homes to go this year. Taken together, this looks awfully like Steinbeck’s Grapes of Wrath.
     
    Judges are finding ways to block evictions. One magistrate in Minnesota halted a case calling the creditor “harsh, repugnant, shocking and repulsive”. We are not far from a de facto moratorium in some areas. This is how it ended between 1932 and 1934, when half the US states declared moratoria or “Farm Holidays”. Such flexibility innoculated America’s democracy against the appeal of Red Unions and Coughlin Fascists. The home siezures are occurring despite frantic efforts by the Obama administration to delay the process.
     
    This policy is entirely justified given the scale of the social crisis. But it also masks the continued rot in the housing market, allows lenders to hide losses, and stores up an ever larger overhang of unsold properties. It takes heroic naivety to think the US housing market has turned the corner (apologies to Goldman Sachs, as always). The fuse has yet to detonate on the next mortgage bomb, $134bn (£83bn) of “option ARM” contracts due to reset violently upwards this year and next.
     
    US house prices have eked out five months of gains on the Case-Shiller index, but momentum stalled in October in half the cities even before the latest surge of 40 basis points in mortgage rates. Karl Case (of the index) says prices may sink another 15pc. “If the 2008 and 2009 loans go bad, then we’re back where we were before – in a nightmare.”
     
    David Rosenberg from Gluskin Sheff said it is remarkable how little traction has been achieved by zero rates and the greatest fiscal blitz of all time. The US economy grew at a 2.2pc rate in the third quarter (entirely due to Obama stimulus). This compares to an average of 7.3pc in the first quarter of every recovery since the Second World War.
     
    Fed hawks are playing with fire by talking up about exit strategies, not for the first time. This is what they did in June 2008. We know what happened three months later. For the record, manufacturing capacity use at 67.2pc, and “auto-buying intentions” are the lowest ever.
     
    The Fed’s own Monetary Multiplier crashed to an all-time low of 0.809 in mid-December. Commercial paper has shrunk by $280bn ($175bn) in since October. Bank credit has been racing down a hair-raising black run since June. It has dropped from $10.844 trillion to $9.013 trillion since November 25. The MZM money supply is contracting at a 3pc annual rate. Broad M3 money is contracting at over 5pc.  

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January 12, 2010 Posted by | Economics | , , , , , , | 1 Comment

Gold Forecast 2010, Resuming its Historical Monetary Role as the Anti-Currency !

  • Gold is real money for 5000+ years. Most people still view gold as just another investment idea. They think gold is risky as it has gone up 400%+ since 2003. Public perception will slowly but surely change to: Gold is Money, it is insurance against fiat currency collapse! We are in stage 2 of the gold bull market, the denial is still there, the scoffers are still many and experts are still saying gold is a barbarous relic. But you can be sure, these people will eat their words. They will prove to be at best highly educated idiots! At the end of this stage 2 bull market rally, most people will come around. Stage 3 will begin when the sheeple goes on a stampede to dump fiat currencies for gold. Nick Barisheff writes:
     
    In 2009 gold resumed its historical monetary role – as the anti-currency. Therefore, the influences and events that affect its price are not simple commodity supply/demand fundamentals, but the more complex global monetary issues.
      ……
    So let’s start with the obvious gold events of the past year.  It was the first time in 20 years that gold purchases for investment purposes outpaced gold purchases for jewellery demand.  However, in terms of significance, central bank buying of gold this past year upstaged all other events. For the first time in over 20 years, central banks became net buyers rather than net sellers of gold. This is a watershed event.
     
    India’s central bank purchase of over 200 tonnes of IMF gold in the fall of 2009 demonstrated that large central banks were willing to pay the market price for gold. This removed the concern that official sector sales could cut short any meaningful rally.  Although the central banks have been selling less gold each year lately, the threat of IMF sales had continued to weigh on the market.  Russia and China further dispelled this fear with the disclosure that they too have added 130 and 454 tonnes respectively.  Several smaller central banks such as those in Sri Lanka and Maritius also added to their gold reserves. Therefore, central bank buying was clearly the significant gold event of 2009 and will likely continue to be in 2010.
     
    The next level of news events had implications that might not have been so obvious at first glance. On October 6, Robert Fisk, a veteran Middle East correspondent writing for the UK’s Independent, published an article entitled “The Demise of the Dollar.” The article described how “Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading.” Although the central banks immediately rejected these rumours, the market treated their denials as a clear admission of guilt and gold broke through year-long resistance at $1,020 an ounce into an entirely new trading range that day.
     
    The Iranian oil bourse, which allows oil sales in several currencies except the US dollar, is another indication that this trend will continue.  In addition, the US’s greatest supporter of the petrodollar, Saudi Arabia, announced that it would no longer trade oil futures on the NYMEX. And on October 19 a related event occurred that received almost no mainstream press coverage; in fact, the only mention I could find of this story at first was at Al Jazeera Online. This was an agreement between ten member states in Central and South America and the Caribbean to use the sucre rather than the dollar for intra-regional trade. Venezuela, one of the West’s largest oil suppliers, is also a member of this new alliance.
     
    This trend is significant to gold because, since 1973, the US has been able to accumulate huge deficits thanks to an agreement with OPEC to price oil in dollars exclusively. This system worked until the 2008 financial crisis, which many felt weakened the dollar’s inherent worth beyond repair. The petrodollar experiment, which started in 1971 with the removal of the dollar’s peg to gold and continued in 1973 when the dollar was essentially backed with oil, is coming to an end after only 36 years. However, given the weakness of other currencies and the fact that no other paper currency currently threatens to replace the US dollar, the process may take years to complete. The end of the petrodollar’s hegemony, which is inevitable in my opinion, will have significant implications for gold.
     
    Another event whose implications may require some extrapolation was the move by the Chinese government to encourage and facilitate gold buying by the Chinese public. China watchers know the Chinese have a long-term love for gold. In fact, on December 9, Reuters announced that China had surpassed India as the world’s largest gold buyer, for the first time in recorded history.  The Chinese have also demonstrated a strong propensity for saving. With their government making no secret of its displeasure with the US dollar, and with few other safe investment options available, the Chinese public could provide the fuel to move the gold price to new highs. One ounce purchased by each of the 80 million middle-class Chinese would equate to 2,500 tonnes of gold.  It is important to remember that during the last gold bull, the Chinese public was unable to participate. This is a story that definitely bears watching.
     
    Finally, in the third category, is the news we might compare to the first spark of a match that either extinguishes uneventfully or ignites a raging, out-of-control forest fire. Most of us in the gold industry have discovered that we ignore these flickers at our own peril. Many of the stories that started as hints or rumours a few years ago are now accepted as fact. The first of these issues we are watching is the imbalance between gold derivatives and paper proxies and the amount of physical gold in existence. This is important because despite its best efforts, Wall Street still cannot print gold.
     
    Since almost all the gold ever mined remains in existence and gold reserves and production estimates are monitored meticulously, such discrepancies will show up faster in the relatively small gold market than they might with other commodities. As Wall Street churns out new gold investment vehicles, people are starting to do the math. If it becomes apparent that financial institutions have sold more paper gold than actually exists in physical form, then the price of paper gold and physical gold could diverge.
     
    This year, many analysts began to apply increased scrutiny to the gold and silver ETFs. In mid–July, hedge fund giant Greenlight Capital announced they were moving assets out of the world’s largest gold ETF – SPDR Gold Shares – and into physical gold. Greenlight is an industry leader whose movements are carefully studied and often emulated. Although Greenlight’s manager, David Einhorn, claimed it was cheaper to own and store physical gold than it was to pay the ETF fees, the fact that a major, industry-leading fund would move to physical bullion set off many alarm bells.
     
    Since ETFs do not actually purchase their assets, there is nothing prohibiting Authorized Participants from contributing baskets of borrowed gold. The amount of borrowed gold held by ETFs is a matter of speculation.  With multiple claims on the bullion, ETF investors may suffer unexpected losses under stress conditions when they need their gold the most. So with these events of 2009 in mind, I am often asked, “How high might the price of gold go?”
     
    Let’s look at some figures.
    We know that the US must refinance at least two trillion dollars of debt in 2010. They can raise this money in one of three ways:  through the sale of bonds, through increased taxation, or through monetization by the Federal Reserve. Foreign investors showed decreasing appetite for US treasuries in 2009. Rising unemployment along with an aging population makes increased taxation a poor option. Therefore, the US Fed will be forced to monetize the ballooning debt, further eroding  confidence in the dollar as the world’s reserve currency.
     
    This will encourage central bankers, especially those of the developing countries, to accelerate their accumulation of gold. Stephen Jen, a managing director at hedge fund BlueGold Capital and an expert on sovereign wealth funds from his days at Morgan Stanley, estimates that the percentage of gold held by the Chinese, Indian and Russian central banks is just 2.2 percent. This compares with 38 percent held by Western central banks. According to Jen, they would have to buy $115 billion dollars worth of gold at current prices to raise their bullion to just 5 percent of total reserves, and $700 billions’ worth to reach just half of Western levels.
     
    Along with many others in the gold industry, we have noticed that fund managers are starting to buy gold as long-term insurance, which they intend to hold for several years. By one estimate, if the world’s pension funds and hedge funds moved only five percent of their assets into gold, which these days seems quite conservative, gold would trade above $5,000.  With leading wealth managers such as David Einhorn, John Paulson and Paul Tudor Jones allocating significant amounts of their portfolios to gold, the process may have already begun.
     
    In conclusion, the events of the past year bode well for the price of gold in 2010. At the recent highs of $1,200 many thought that gold was overbought. For those who feel this way, I would like to close with some recent words from investment legend Richard Russell who said, “If gold is going parabolic, then there’s no such thing as ‘overbought’,” Almost any of the events of 2009 I have highlighted could trigger such a parabolic rise. Right now the Chinese and Indian public, the non-Western central banks, the sovereign wealth funds, the pension funds and the hedge funds of the world are all looking for ways to increase their long-term gold holdings. The pull-back from the recent highs of $1,200 seems to be over, providing an attractive entry point for investors. In 2010 we will likely see prices rise to at least $1,300 to $1,500.
     
    It is important to understand that this isn’t a typical bull market. Unless governments around the world stop creating massive amounts of new money, the price of gold will continue to rise. There is a famous investment axiom that states, “Now is always the most difficult time to invest.”  To that I would add, “But now is also the best time to insure the wealth we have accumulated is protected through the ownership of gold.”

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January 12, 2010 Posted by | Economics | , , , , , , , , , | 3 Comments

Survivor America: “It’s Only Going to Get Worse,” Gerald Celente Says!

Vodpod videos no longer available.

  • America is being taken over by a fascist cabal with their puppet politicians. The country is being ‘raped’ by these Illuminati banksters. Wall Street banksters financed both sides during WW1 and WW2. These banksters are using America much like Nazi Germany was setup during WW2. Fascism is rising, wars are increasing and the sheeple continue to sleep while the country is going up in flames. Americans must wake up and take back their Great Nation under God. No other nation, in my opinion, can stand up to how great America was. America has a great Constitution and marvellous Bill of Rights. Unfortunately, Americans will not stand up and fight while snakes openly proclaimed: “It is just a God damned piece of paper!”. Gerald Celente on Yahoo Finance:
      
    “It’s only going to get worse,” is the sobering forecast of Gerald Celente, director of the Trends Research Institute. As discussed in a prior segment, Celente believes the “bailout bubble” is going to burst and the U.S. economy will slip back into recession, if not worse, in 2010. Like all forecasters, Celente isn’t always right but he has predicted a number of major events, as detailed here.
     
    So if Celente is right about 2010, what will that mean for the average American? Celente says we’re going back to basics, making do with less and adopting the following mantra: “Waste not, want not. Use it up wear it out. Make it due, due without.”
     
    On his Website, Celente offers
    the following predictions, further discussed in the accompanying video:
     
    Neo-Survivalism: “In 2010, survivalism will go mainstream,” Celente writes. “Unemployed or fearing it, foreclosed or nearing it, pensions lost and savings gone, all sorts of folk who once believed in the system have lost their faith. Motivated not by worst-case scenario fears but by do-or-die necessity, the new non-believers, unwilling to go under or live on the streets, will devise ingenious stratagems to beat the system, get off the grid (as much as possible), and stay under the radar.”
     
    – Depression Uplift: “As times get tougher and money gets scarcer, one of the hottest new money-making, mood-changing, influence-shaping trends of the century will soon be born; we forecast that this will be “Elegance” in its many manifestations,” he opines. “The trend will begin with fashion and spread through all the creative arts, as the need for beauty trumps the thrill of the thuggish. A strong, do-it-yourself aspect will make up for reduced discretionary income, as personal effort provides the means for affordable sophistication.”

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January 12, 2010 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , | 1 Comment

Euro Health Chief: The ‘False’ Pandemic, Drug Firms Cashed In On Scare Over Swine Flu!

  • Corruption is endemic in the pharmaceutical industry. Big Pharma is corrupt. You should not trust your health entirely on Big Pharma and a government bought out by them. It is all about the money. Real cures are suppressed when it affects their profits greatly. This is why you will never find a cure for cancer from Big Pharma. You should also accept that many alternative cures are not as loony as portrayed by the MSM. Of course, Big Pharma will spread dis-information via their paid for research papers and researchers, to paint real cures as coming from the uneducated lunatic fringe. The Daily Mail UK reports:
      
    The swine flu outbreak was a ‘false pandemic’ driven by drug companies that stood to make billions of pounds from a worldwide scare, a leading health expert has claimed.Wolfgang Wodarg, head of health at the Council of Europe, accused the makers of flu drugs and vaccines of influencing the World Health Organisation’s decision to declare a pandemic.
      
    This led to the pharmaceutical firms ensuring ‘enormous gains’, while countries, including the UK, ‘squandered’ their meagre health budgets, with millions being vaccinated against a relatively mild disease.
     
    A resolution proposed by Dr Wodarg calling for an investigation into the role of drug firms has been passed by the Council of Europe, the Strasbourg-based ‘senate’ responsible for the European Court of Human Rights. An emergency debate on the issue will be held later this month.
     
    Dr Wodarg’s claims come as it emerged the British government is desperately trying to offload up to £1billion of swine flu vaccine, ordered at the height of the scare.
      ….
    Dr Wodarg has branded the H1N1 outbreak as ‘one of the greatest medical scandals of the century’. He said: ‘We have had a mild flu – and a false pandemic.’ He added the seeds of the scare were sown five years ago, when it was feared the much more lethal bird flu virus would mutate into a human form. The ‘atmosphere of panic’ led to governments stockpiling the anti-flu drug Tamiflu and putting in place ‘sleeping contracts’ for millions of doses of vaccine
     
    Dr Wodarg said: ‘The governments have sealed contracts with vaccine producers where they secure orders in advance and take upon themselves almost all the responsibility. ‘In this way the producers of vaccines are sure of enormous gains without having any financial risks. ‘So they just wait, until WHO says “pandemic” and activate the contracts.’ He also claims that to further push their interests, leading drug companies placed ‘their people’ in the ‘cogs’ of the WHO and other influential organisations.
       ….
    He added that their influence could have led the WHO to soften its definition of a pandemic  –  leading to the declaration of a worldwide outbreak last June. Dr Wodarg said: ‘In order to promote their patented drugs and vaccines against flu, pharmaceutical companies have influenced scientists and official agencies, responsible for public health standards, to alarm governments worldwide.
     
    ‘They have made them squander tight healthcare resources for inefficient vaccine strategies and needlessly exposed millions of healthy people to the risk of unknown side-effects of insufficiently tested vaccines.’

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January 12, 2010 Posted by | Medicine & Health | , | Comments Off on Euro Health Chief: The ‘False’ Pandemic, Drug Firms Cashed In On Scare Over Swine Flu!