The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Thursday, December 29, 2011

Tax the rich? Why not go after foundations that use tax code to profit themselves

501(c)3 corporations were created to help organizations such as churches and small charities avoid taxation for the work they do in helping the American people.  Unfortunately, the tax code is now so convoluted, that organzations such as the AARP can sell themselves to endorsements, to the tune of $600 million, and call it 'charitable benefits'.

Congress is attempting to fight back, but in this case, AARP may have the upper hand.  As a billion dollar non-profit, they have the resources to defend themselves quite easily from what is being deemed as an attack by the government to have the IRS re-evaluate their non-profit status.

Three members of Congress have shot a cannon at the American Association of Retired Persons (AARP). Republicans Herger (CA), Boustany (LA) and Reichert (WA) sent a letter to the head of the IRS asking that the tax status of AARP be reviewed. – Bruce Krasting via Zerohedge

AARP has come under fire in recent years for using its funds to support Obamacare, which will have a vastly negative result for their customers and members.  And like most Unions, foundations that act under the tax-exempt 501(c)3 protection end up being cash funnels for politicians, at the detriment of citizen representation.

Taxing the rich is a feel good proposition, but if you want to protest organizations that rake in serious dollars at the detriment of the common man, 501(c)3's may be the first place to look.
Just go ask your local mega-church Pastor who lives in a million dollar home, with private jets, and compounds while their congregations are without jobs and income.

Europe has no idea as seen by today's comments from Italy's PM three card Monti

To know for sure that the Euro and Euro Zone are toast, all one has to do is look at the multiple contridictions said last night by Italian PM Mario Monti, and his complete failure to say anything in regards to the future of the debt crisis.

  • *MONTI SAYS EUROPE MUST NOT GIVE UP MODEL OF SOCIAL WELFARE
  • *MONTI SAYS EUROPE CAN'T SUSTAIN CURRENT WELFARE SPENDING
  • *MONTI SAYS EFSF NEED `SIGNIFICANTLY MORE' FUNDING
Oh and this...
  • *MONTI SAYS NOTHING JUSTIFIES CURRENT ITALIAN SPREAD - Zerohedge

It is almost hilarious (sad funny) how ignorant these technocrats think the markets are, and how ignorant in fact, they themselves appear to everyone.  It beckons back to a time of Saturday morning cartoons, and Bullwinkle trying to sell is his own three-card Monti.


Jim Willie: The disconnect between paper and physical gold is underway

As many gold bugs sweat a little these days with the pullback in gold prices, and talking head analysts on CNBC and Bloomberg pounce on the drop in prices as if their several years of being wrong on gold is somehow now validated, professional metals analyst Jim Willie has a few things to say about the market.

Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. – IB Times

As we head into 2012, all indicators point to a deflationary period, and an inevitable massive bailout of both Euorpean and US banks through central bank monetization.  For holders of physical gold, they know that nothing goes in a straight line up, and pullbacks are healthy.  When they finally consolidate, and the paper markets become a desert wasteland of HFT trading, the real prices will go back to the physical markets, and in them, supply and demand will be king.

Wednesday, December 28, 2011

Dollar goes back over 80 on the index as the Euro collapses below 130

In an interesting turn of events this morning in the markets, the Euro out of nowhere suddenly collapsed and fell more than 100 bps to 129.58 while the dollar climbed more than .58 on the index to 80.39.

In pre-market news, the Euro was actually strengthening as Italy was able to manufacture a bond sale on their 6-month instruments, but that appears to have been short-lived as the US markets reversed their course and are selling in the red, while the currency climbs towards 81.

Gold, along with most commodities, has experienced a selloff of nearly $20, and oil is down more than $1 to $100.20.

Oil prices watching the escalation by the US and Iran in the Straits of Hormuz

Oil prices are down more than $1 this morning in trading due to the strengthening US dollar, but are still over $100 per barrel.  Traders however, are watching very closely to a growing escalation between the US Navy and Iranian sabre rattling that threatens to close the Straits of Hormuz, and potentiall skyrocket oil prices.

A senior Iranian official on Tuesday delivered a sharp threat in response to economic sanctions being readied by the United States, saying his country would retaliate against any crackdown by blocking all oil shipments through the Strait of Hormuz, a vital artery for transporting about one-fifth of the world’s oil supply.
The declaration by Iran’s first vice president, Mohammad-Reza Rahimi, came as President Obama prepares to sign legislation that, if fully implemented, could substantially reduce Iran’s oil revenue in a bid to deter it from pursuing a nuclear weapons program. – NY Times

From Reuters:

"The free flow of goods and services through the Strait of Hormuz is vital to regional and global prosperity," a spokesperson for the Bahrain-based fleet said in a written response to queries from Reuters about the possibility of Iran trying to close the waterway.
 "Anyone who threatens to disrupt freedom of navigation in an international strait is clearly outside the community of nations; any disruption will not be tolerated."
Asked whether it was taking specific measures in response to the threat to close the Strait, the fleet said it "maintains a robust presence in the region to deter or counter destabilizing activities", without providing further detail.

Already, the end of 2011 and the beginning of 2012 is shaping up to be a time of chaos and fear as each side is preparing for an inevitable confrontation over oil, nuclear power, and the right of the West to control events and national policies in a sovereign state.

Tuesday, December 27, 2011

Capital One: Your friend in the debt collection business

It appears that the banking cartels care not for the rule of law, or even the basic decency of ensuring the people they harrass over outstanding debt are viable by law to be collected upon.  In a growing lawsuit by many former customers on Capital One, it appears that the credit card company was trying to get people to pay for charges that were already cleared up in bankruptcies.

Filing and completing bankruptcy proceedings is supposed to free consumers from paying any outstanding debt to credit card companies. But that hasn’t stopped Capital One, one of the leading credit card lenders, from going after bankrupt Americans.
More than 15,000 times, Capital One has taken individuals who have gone bankrupt to court in an effort to squeeze more money out of them. To do so knowingly is against the law. The company claims it just made a mistake…several thousand times.
Of the 15,500 people subjected to Capital One lawsuits, more than 800 of them have filed counter-suits to stop the company.
One bankruptcy judge, David Houston III in Aberdeen, Mississippi, plans to demand that representatives of Capital One appear before him in his court to explain its debt-collection practices. The judge previously rejected the company’s request to throw out a lawsuit that alleged Capital One sought $43,396.59 that was legally erased in an earlier bankruptcy case filed by the same person.
“I want some proof from the company that this was a legitimate error and not a conscious, malevolent effort to go out and collect a debt that’s been discharged,” Houston told The Wall Street Journal.
According to the Journal, “In 2008, a U.S. bankruptcy trustee in Massachusetts accused Capital One of illegally trying 5,600 times to collect debts already wiped out by a bankruptcy judge.” That same year, Capital One was itself saved from potential bankruptcy when it received a $3.55 billion bailout from U.S. taxpayers as part of the Treasury Department’s Capital Purchase Program.
The founder, chairman and chief executive officer of Capital One is the ironically named Richard Fairbank. – All Gov.com

As we know from 2008... what are laws and rules for the little people when it comes to banks and their own insatiable appetite to consume the wealth of everyone like an economic black hole.

Gold prices fall as China tightens internal trading and regulatory controls

Gold fell about $12 overnight as new regulatory controls were enacted by the Chinese government on trading of gold to the public.  It appears from the markets overreaction that they did not read into the new rules and processes, as it simply tightens audit controls, and not lessen the power to purchase the metals by citizens.

*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS
*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS
*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC
*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT

Like most news, the gold markets should settle back after the realization that trading isn't going to be limited, just carefully regulated a bit more in the Asain sphere.

Anonymous Hacker Group provides explanation for data theft at Stratfor

Over the Christmas holiday, one of two primary hacker groups, in this case Anonymous, broke into the databases of global think tank Stratfor and downloaded over 200GB's worth of emails, credit and personal information, and policy links.

On December 27th, the group issued a communique as to why they targeted the think tank.



Stratfor was not breached in order to obtain customer credit card numbers, which the hackers in question could not have expected to be as easily obtainable as they were. Rather, the operation was pursued in order to obtain the 2.7 million e-mails that exist on the firm's servers. This wealth of data includes correspondence with untold thousands of contacts who have spoken to Stratfor's employees off the record over more than a decade. Many of those contacts work for major corporations within the intelligence and military contracting sectors, government agencies, and other institutions for which Anonymous and associated parties have developed an interest since February of 2011, when another hack against the intelligence contractor/security firm HBGary revealed, among many other things, a widespread conspiracy by the Justice Department, Bank of America, and other parties to attack and discredit Wikileaks and other activist groups. Since that time, many of us in the movement have dedicated our lives to investigating this state-corporate alliance against the free information movement. For this and other reasons, operations have been conducted against Booz Allen Hamilton, Unveillance, NATO, and other relevant institutions. The bulk of what we've uncovered thus far may be reviewed at a wiki maintained by my group Project PM, echelon2.org. – Pastebin via Zerohedge

If previous actions by Anonymous show anything, chances are good that personal and credit card data gathered for the most part, will remain inviolate.  However, confidential information taken that shows the paralytic nature between corporations, contractors, and the US government may end up being open season, just as it was for Wikileaks before their head officer was captured and indicted.

Thursday, December 22, 2011

Ann Barnhardt speaks with Peter Schiff on her call for a general strike on the financial markets

Commodities manager Ann Barnhardt recently closed down her business thanks to the MF Global scandal, theft, and overall destruction of the futures markets.  Not one to simply lick her wounds and sit on her laurels, she set a course of action in motion, and is calling for a complete and general strike by all businesses and Americans on the financial markets.

On December 21st, Ann spoke with Peter Schiff on this, and on the ramifications of the future of commodities and agriculture because of MF Gloabal.

12 economic things about Christmas and 2011

Many people always wonder, how does Santa build all those great toys and gifts and get them to every home around the world in just one night?  Well, the truth is, Santa requires alot of help from the global economy, and in 2011, those foundations were causing much grief to the jolly ole elf.

So to celebrate the business model and economic processes of the North Pole corporation, Tick by Tick was kind enough to provide the 12 economic facts of Christmas here in 2011.

  1. In the last 12 months, the Federal Reserve has increased Money Supplied to the Economy (M2) by 9.9%.
  2. Despite the Insolvency of Europe. If you had shorted EURUSD at this very day last year, you would have only made a 0.7% profit.
  3. The Greek Stock Index (ASE) has outperformed Citigroup by 10.36% if held for the last 5 years. If you discount the reverse stock split, Citigroup is now trading at $2.60 vs. $55.70 in 2007.
  4. Consumer Goods producer Procter & Gamble can now borrow money over a 5 year period for less than every Eurozone member with the exceptions of Germany and Finland.
  5. Linkedin, Pandora and Groupon are all loss leading companies. Yet, if you had bought their stock at IPO, you would have made +171%, 8.9% and 50% in the first days trading.
  6. China's stock market is now trading at the same level as it was during Q3 of 2000. During this period, Chinese GDP has almost tripled.
  7. The sum of all US debt both Public and Private equates to $56tn with underfunded future liabilities of $1 037 000 per capita. The official US public debt figure reached 100% of GDP just yesterday.
  8. "Legendary" Hedge Fund Manager John Paulson, about whom a variety of books have been written, has lost over 50% of his funds value in this past year.
  9. In a Bloomberg poll held during December 2011, eleven Sell Side Analysts predicted, on average, that the S&P 500 would grow by 11% to 1379. Of these, the most bullish was Goldman Sachs who openly predicted a 17% rally. The index of the 500 largest American companies is currently down 1.49% YTD.
  10. Being long S&P Volatility has been a successful strategy for 4 of the last 5 years.
  11. In the last month, Bloomberg have published 25 179 articles with the words Europe and Concern included in the prose.
....And Finally
12. Santa has to visit 832 Homes per Second to deliver all of his gifts.

Merry Christmas to all, and to all a good.... wait a moment... where did I put that Mayan Calendar.

Tuesday, December 20, 2011

Ann Coulter says she prefers Ron Paul over Newt Gingrich

Last night on Fox television's Red Eye program, Ann Coulter said to the panel that she would prefer Ron Paul over Newt Gingrich.  While opposing Paul's foreign policies, she says without a doubt the Congressman is the best choice for leading the country in economic matter.


Courtesy of varfrab64

Don't fall for the Housing report euphoria as multi-family dwellings led the way

As our old and infamous quote machine Mark Twain once said, there are lies, damn lies, and then there are statistics.  This is exactly the formula used today to promote a fallacy that housing starts exploded through analyst estimates, and led to the the fake and fabled Santa Claus Rally currently going on in the markets.

The reason why it is such a lie?  The Department of Housing and Development claimed each separate apartment in multi-family dwellings as a new build, thus 'channel-stuffing' the total number of new residences, and corrupting the report.  (In the past, multi-family dwellings were counted as one single residence)

Once again the US Department of Truth succeeds in fooling the algos: today's November Housing Starts number was a blockbuster: at 685K annualized units, it came higher than the highest estimate (range was 600K to 655K), and certainly higher than the average estimate of 635K. It was obviously higher than the downward revised previous number of 627K. All great: housing soaring, employment must be back. Right? Wrong. One peek under the covers shows where all the "growth" comes from - the entirety of the surge was due to the absolutely hollow 5+ multi-family units which jumped by a whopping 25% sequentially, and which as everyone in the industry knows are nothing but inventory padding by homebuilders who "build just to build." Unfortunately, as the all important 1 Unit structure trendline shows, there is absolutely no improvement in this critical series. But hey - it fooled the robots. And now it will take at least 12-24 hours before vacuum tubes process the reality of this latest spin. By then, however, we may well have had our Christmas rally. - Zerohedge



Thus, the ultimate truth here that is being missed by the mainstream... builders are preparing for a society of renters, not home owners, and that does not bode well at all for the economy.

Art Cashin reminds us that Yes Virginia, there is a Santa Claus Rally

Over the past few days, the chances became more unlikely that the markets would engineer that fabled 'Santa Claus Rally' that investors look forward to just before the Christmas break.  However, something magical happened on December 20th, and the old fat elf made it just in time to fulfill Virginia's desire to know if Santa was real.

Here is the original letter from 8 year old Virginia to the New York Sun in 1897, as provided by UBS's Art Cashin.

A Needed Seasonal Note - As we all hopefully recall, young Virginia O’Hanlon wrote to the New York Sun in 1897 to inquire if there really was a Santa Claus. Herewith - the letter and response.


DEAR EDITOR: I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, 'If you see it in THE SUN it's so.' Please tell me the truth; is there a Santa Claus?


VIRGINIA O'HANLON.
115 WEST NINETY-FIFTH STREET


VIRGINIA, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except [what] they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men's or children's, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.


Yes, VIRGINIA, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus. It would be as dreary as if there were no VIRGINIAS. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.


Not believe in Santa Claus! You might as well not believe in fairies! You might get your papa to hire men to watch in all the chimneys on Christmas Eve to catch Santa Claus, but even if they did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that's no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.


You may tear apart the baby's rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived, could tear apart. Only faith, fancy, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, VIRGINIA, in all this world there is nothing else real and abiding.


No Santa Claus! Thank God! he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the heart of childhood.

Today, central banks and planners are Santa Claus, and they made sure investors didn't go home hungry before Christmas, thus continuing the belief that each year, around this time, a computer somewhere with a red elf hat on is doling out fake bids to prop up the markets, and bring the 1%ers a little Yuletide cheer.

Monday, December 19, 2011

Euro Circus: Italy to give money to the IMF to bailout Italy

We have to wonder now about the Italian education system, and the bright young minds who grow into politicians and central bankers in the Euro Zone.  Today, a letter by the IMF specified that Italy needs to provide $32 billion Euros to the banking institution so they can use the funds to bailout...

Italy.

EUstatement

Pretty soon, we are going to have to tax the American citizens more so they can pay off the debts the Federal government owes on their behalf.  Oh wait... we do that anyway, so maybe our education system is just as bad as the Italians.

Bank of American go boom: Falls and closes below $5.00 a share

Bank of America crossed the stock mendoza line, and closed below $5 per share to close at $4.96.  This close will trigger massive stock evaluations as many mutual and other stock funds are not allowed to hold equities below $5 a share.

As definitive evidence just how fucked up this entire market is, here is what happens to the ES the second the infinite BAC Bid at $5.00 finally gets taken out. This is the ESH2. That's right - the entire market moved tens billions in market cap because the Plunge Protection Team just failed at protecting the "precious" $5.00 level. - Zerohedge

List of Bank of America holders:

Sunday, December 18, 2011

Gold: If you don't hold it then it could be open for confiscation by trustees

In the aftermath of the MF Global theft and scandal, a new discovery is surfacing in the legal capabilities of bankruptcy trustees.

The right to confiscare property, even if it is owned by clear deed or receipt by a customer not associated with the failed company.

The bottom line is that apparently some warehouses and bullion dealers are not a safe place to store your gold and silver, even if you hold a specific warehouse receipt.  In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation.
Although the details and the individual perpetrators are yet to be disclosed, what is now painfully clear is that the CFTC and CME regulated futures system is defaulting on its obligations.  This did not even happen in the big failures like Lehman and Bear Sterns in which the customer accounts were kept whole and transferred before the liquidation process.   Jessie’s CafĂ© Americain

With MF Global, we first learned the diabolical consequence of Re-Hypothicaton.  Now, the other shoe drops and the system is showing its bite and is claiming the right and power to take legitimate private property, albeit the gold and silver investors own and have stored in warehouses.

The old axiom every investor should know:  If you don't hold it, you don't own it.

Cant wait for the owners to sue the CME and the judge awards them fiat currency, while the exchanges get to keep your gold.

Potential war in Middle East escalates as Syria deploys chemical scuds on border

More than Iran, Syria may become the powederkeg to World War III, and the savior to the banking system and corrupt world leaders who desperately need an external threat to take the heat off their insolvency and inability to deal with the problems they helped create.

Expanded Russian military and diplomatic support for the Assad regime was underscored by the deployment Friday, Dec. 16, of advanced Moscow-supplied Yakhont (SSN-26) shore-to-sea missiles along Syria's Mediterranean shore to fend off a potential Western-Turkish invasion by sea. Last week, Russia airlifted to Syria 3 million face masks against chemical and biological weapons and the Admiral Kutznetsov carrier and strike group was sent on its way to Syria's Mediterranean port of Tartus. - Debka
The moment chemical warfare is used, if it is used, then all bets are off.  Biblical prophecy has a war showing Damascus as a ruinous heap, and the only weapon capable of accomplishing this is a nuke.
So as the US and Europe rattle their sabres at Iran, don't forget to watch Syria, for it is the next Arab Spring nation to fall, especially now that the US has pulled out its troops from Iraq.

Commodities exchange blames MF Global for lack of charitable giving this year

The Chicago Mercantile Exchange (CME) Group has decided that because of the MF Global theft of customer accounts in the commodities realm, they will have to skip their normal donations to charity this Christmas to instead focus on paying back clients who had their money and accounts stolen, and subsequent contracts defaulted.

CME Group Inc, which has given $22 million to Chicago-area schools and charities over the past five years, has stopped making grants through its main foundation, citing the collapse of MF Global Holdings Inc.
Investigators are still searching for hundreds of millions of dollars of customer funds that CME says were improperly siphoned off Pin the brokerage's final days to plug its escalating liquidity needs. – Hartford Courant

Lets just hope the CME doesnt think those who lost tons of money to the greed of Wall Street are to be seen as charity, and that repayment is voluntary, or simply a good tax write-off.

Saturday, December 17, 2011

Hitler speaks on Ron Paul's climb in the polls

Once again, its time for the maniacal and quite dead fascist leader Adolph Hitler to weigh in on the growing charge of Ron Paul in the Iowa and New Hampshire polls.

Ron Paul interview on Jay Leno

One thing is for sure, Jay Leno treats people with respect and allows them to say what they desire, and not make everything into a big joke (hint Letterman).

Last night, this was very appearant as Leno had Ron Paul on as a guest, and judging by the audiences reaction, it was probably one of the best shows he's had this year.


After this interview, there is no question that Ron Paul is not only popular, but affiable to so many segments of the population.

Friday, December 16, 2011

Gold rebounds back over $1600 after liquidity selloff slows down in Europe

For all the analysts, pundits, and overall incapable talking heads who perceived the large pullback in gold prices as an end of the bull market, fundamentals have a way of proving how incorrect they always are.

The recent drop in gold was primarily due to a need for liquidity and for dollars in Europe.  Nothing else.  And for those who saw the drop as a buying opportunity, then Christmas came early in the form of $1500 level prices.

Less than 24 hours later, gold has just passed $1600 yet again. And as the following note from Sandeep Jaitly of First International Group (whose interview with Max Keiser exposing economics for fraud back in June was quite the hit) observes, by analyzing the continued funding unwind pressure, the recent liquidation move in gold is one that has to be taken advantage of. To wit: "The movements in the bases confirm that the recent downward move in gold against Dollars was as a result of Dollar funding pressures. Gold was lent on the swap against United States Dollars. This swap must be unwound and where a bid for gold was sought to raise Dollar liquidity, an offer of gold will be sought to unwind the swaps. - Zerohedge

Owning gold is based on two simple rules today.  Wealth protection in opposition to the purchasing power of a currency (dollar), and as long as the central banks (Fed) have to monetize, print money, or do any form of intervention and easing, gold will move inevitably up.
Gold is not in a 'bull market', or ANY market for that matter.  It is moving because it is the one true barometer of the global economy, and right now, we are in that temporary deflation period that always preceeds the disasterous hyperinflation one.

Three years too late: Sec to finally sue Fannie and Freddie executives for fraud

During the Savings and Loan scandal of two plus decades ago, over 1100 bankers were arrested, indicted, and jailed for fraud.  In the 2008 credit crisis and subprime meltdown, nary a soul has been interrogated beyond a cursory hearing before the Congressional dog and pony shows.

So when the SEC in 2011 finally decides to step up and act like they are doing their fudiciary and regulatory duty in suing former CEO's of Fannie and Freddie for fraud and misleading investors on the subprime risk, it is simply a matter of three years too late, and one wonders if this is a simply a political move, rather than a judicial one.

Between December 6, 2006, and August 8, 2008, (the "Relevant Period"), Daniel H. Mudd ("Mudd"), Enrico Dallavecchia ("Dallavecchia") and Thomas A. Lund ("Lund") (collectively, "Defendants"), made or substantially assisted others in making materially false and misleading statements regarding Fannie Mae's exposure to subprime and Alt-A loans.
For example, in a February 2007 public filing, Fannie Mae described subprime loans as loans "made to borrowers with weaker credit histories" and reported that 0.2%, or approximately $4.8 billion, of its Single Family credit book of business as of December 31, 2006, consisted of subprime mortgage loans or structured Fannie Mae Mortgage Backed Securities ("MBS") backed by subprime mortgage loans.
Fannie Mae did not disclose to investors that in calculating the Company's reported exposure to subprime loans, Fannie Mae did not include loan products specifically targeted by the Company towards borrowers with weaker credit histories, including Expanded Approval ("EA") loans. As ofDecember 31, 2006, the amount ofEA loans owned or securitized in the Company's single-family credit business was approximately $43.3 billion, yet none of these loans were included in the Company's disclosed subprime exposure. – Lawsuit filed

Mudd Fnm Fre Doc

Thursday, December 15, 2011

Fall in gold prices should be slowing as lease rates move negative

An interesting viewpoint on gold prices was made today by Zerohedge as historical technicals show the rise and fall in gold prices are intrinsically tied to the rise and fall of the Libor lease rates.

As gold got crushed in trading over the past week, the lease rates steadily fell, and are now in negative territory.  This indicator should reveal the selloff of gold should be done, and bypassing a major crisis or event, should create a relative support level in the upper 1500's, lower 1600's for the near future.

...a good summary was presented by Jesse's Cafe Americain yesterday, who correctly suggested that record lease rates are a primary driver for the near historic sell off we experienced yesterday. In a nutshell, negative lease rates mean one has to pay for the "privilege" of lending out one's gold as collateral - a prima facie collateral crunch. The lower the lease rate, the greater the use of gold as a source of liquidity - and since the indicator is public - it is all too easy for entities that do have liquidity to game the spread and force sell offs by those who are telegraphing they are in dire straits and will sell their gold at any price if forced, to prevent a liquidity collapse. - Zerohedge




(Charts courtesy of Bloomberg via Zerohedge)

Today, gold has held steady, just down $2.00 despite the good (manipulated) economic reports.  We shall keep an eye out on the lease rates and how they affect gold prices going foreward to validate this correlation.

Rich get richer: Executive bonuses back up in 2011

Is it any wonder why Occupy Wall Street took off earlier this year when it appears once again the top executives for US corporations will be receiving higher, and even record bonuses?

Chief executive pay has roared back after two years of stagnation and decline. America's top bosses enjoyed pay hikes of between 27 and 40% last year, according to the largest survey of US CEO pay. The dramatic bounceback comes as the latest government figures show wages for the majority of Americans are failing to keep up with inflation.
America's highest paid executive took home more than $145.2m, and as stock prices recovered across the board, the median value of bosses' profits on stock options rose 70% in 2010, from $950,400 to $1.3m. The news comes against the backdrop of an Occupy Wall Street movement that has focused Washington's attention on the pay packages of America's highest paid. – Gaurdian UK

With new census reports showing 1 in 2 Americans are considered poor, or in poverty, the rise of protest and rebellion agains the elite will only increase and perhaps lead to more violence in what is shaping up to be a tumultuous 2012 forecast.

Tuesday, December 13, 2011

Jon Corzine lied about knowledge of customer funds according to CME Exec

Now the fun starts as everyone involved in MF Global start throwing each other under the bus.  In a Reuters story today, an Executive from the Chicago Mercantle Exchange (CME) initmated that Jon Corzine lied under oath, and that he indeed had knowledge of where the missing customer money went to.

An auditor with CME Group was told that former MF Global chief Jon Corzine knew about loans backed by customer segregated accounts that were made to a European affiliate of the firm, a CME executive said on Tuesday.
CME Executive Chairman Terrence Duffy said his company has provided this information to the Justice Department and the Commodity Futures Trading Commission.
Duffy, testifying to the Senate Agriculture Committee, said a CME auditor participated in a phone call during which an MF Global employee indicated that Corzine knew of the lending, which was likely made in the last couple of days prior to MF Global's Oct. 31 bankruptcy.
The loan was for roughly $175 million, Duffy said. – Reuters via Zerohedge

Now the question becomes... how long will it take Corzine to start his own bus throwing to save his pathetic bacon?

Moody's may downgrade Spanish bank ratings

Late yesterday, Moody's rating agency said that they might be downgrading more Spanish banks as their solvency in the Euro Zone falls.

Moody's on Monday placed eight Spanish banks and two holding companies on review for possible downgrades due to expectations of increased losses stemming from their commercial real estate exposure. The move was prompted by Moody's reassessment of all Spanish banks which indicated a projected decline in earnings generation capacity due to a weaker growth outlook for the Spanish economy. - Marketwatch

Frankly, isn't it about time they were all downgraded enmasse, since liquidity and solvency for the majority of them is a smoke and mirrors over-leaveraged sham.

Corzine to go before Senate for another round of I dont Know

Former MF Global CEO Jon Corzine is appearing before the Senate today for a followup hearing on the loss and theft of customer accounts with the now bankrupt company.

Expect nothing less than a continuation of 'I Don't Know' to be uttered from the lips of the Goldman Sachs and Washington insider as the dog and pony show simply moves up the Hill so Democrats can get ther airtime in.

Monday, December 12, 2011

The absolute reason why liberalism and Occupy Wall Street is a mental disorder

There comes a time in history when a society must relegate their mentally ill to institutions so that they cannot destroy the entire culture for the sake of a few.  Of course, when those few become many, sometimes one will actually grow up to teach others, and grow it like a disease.

Michael Savage coined the phrase that liberalism is a mental disorder.  Now we can add the Occupy Wall Street crew to that stereotype.  A colleague was speaking to a friend of his who had attended Occupy gatherings, and told him this statement with a straight face.

"There is no good reason, why the Federal Government can't pass a law making it a crime for investments to lose money. That in this day an age, we should be past all of this ups and downs, that we can regulate the markets to where his money makes more, or else."

This is the epitome of a large portion of the nation, who call themselves the 99ers, and belong instead on the short bus, and outside any sembalence of society.

The five most influential people in the economical world courtesy of the Onion

Economics today is both humor and tragedy as the 1% disdain the 99%, and the 99% seek pure mob rule in wanting to redistribute their wealth... to themselves.

Thankfully, the combination of comedy and tragedy has been given to us in a Top 5 look at the most influential people in economics, both today and yesterday.

Or is it tomorrow?

Pictures courtesy of the Onion.









The Chinese Disneyland no one goes to

China is famous now for building cities no one lives in, tearing them down, and then rebuilding them just to keep employment up, and social unrest down.  But few know the plagarism capital of the world also built a Disneyland type complex, that like the ghost cities, is vacant and without visitors.

Situated on an area of around 100 acres, and 45 minutes drive from the center of Beijing, are the ruins of ‘Wonderland’. Construction stopped more than a decade ago, with developers promoting it as ‘the largest amusement park in Asia’. Funds were withdrawn due to disagreements over property prices with the local government and farmers. So what is left are the skeletal remains of a palace, a castle, and the steel beams of what could have been an indoor playground in the middle of a corn field. – Photographers Blog. Reuters

(photo courtesy of fadedandblurred.com)




New report shows housing and unemployment go hand in hand

While it has been conjectured for decades that there is a correlation between housing builds, prices, and growth and employment in the US, a new report shows just how strong that correlation is.

Additionally, as the FED has kept interest rates (mortgage rates low), home sales have not increased, and in fact have fallen because unemployment has increased.





So... with the FED mandates of employment and controlling inflation thrown out the window since 2007, do not expect housing prices or sales to increase anytime soon, as the Fed is lost in the wilderness on how to improve both.

British PM defends rejection of new EU agreement

With all the jubilation and 'happy happy joy joy' the markets experienced when German Chancellor Angela Merkel and French President Nicolas Sarkozy declared a new day for the EU, they quickly dissipated when Britain summarily say 'Nay', and rejected the EU agreement outright.

Today, British PM David Cameron spoke before parliament as to why England rejected the new proposal, and you can see the speech in the video below.

 David Cameron's statement to the House of Commons, Thomson Reuters: Reuters Insider
 

Thursday, December 8, 2011

Adolph Hitler chimes in about the Euro Zone collapse

It didn't take long for someone to come up with a parody of the failing Eurozone on video, and who best to chime in on the disaster than the once and mighty dictator himself, Adolph Hitler.


I wonder if Angela Merkel can contact the ghost of Hitler and reign some blitzkreig terror on the PIIGS and central bankers who have brought down the new 4th Reich.

The Gingrinch: Newt Gingrich Christmas Song

JJ Jones productions has created a very good Christmas song for politician and presidential candidate Newt 'The Gingrinch' Gingrinch.


Perfect way to get into the spirit of a Washington insider Christmas.  (No campaign donations required)

Desperate central banks selling gold to protect dollar and Euro

As many investors have noted today, gold was hit hard after news from the Head of the ECB came out that they were lowering borrowing rates for the Euro.  Logically, this should have caused gold to spike upward, which brings in to question why it performed opposite its market nature.

Now we know.  News has surfaced that immediately after the ECB announcment, several central banks dumped gold on the markets, thus manipulating the price downward to protect the dollar and Euro.

It is one thing for conspiracy websites to indicate that the Fed or the global central bank cartel are doing everything in their power to manipulate the price of gold lower. It is something different when the 'reputable', Deutsche Boerse owned Market News does just that.
  • MARKET SOURCES REPORT BIS, BOE & FEDERAL RESERVE WERE SELLING GOLD AFTER IT POPPED TO SESSION HIGH AT GMT 1335 -MNI NEWS via BLOOMBERG
So much for all those sworn testimony claims that the central bankers do not manipulate the price of gold. – Gold Core via Zerohedge

Let us remember just how bad and how desperate the central banks are regarding the currency debt crisis.  If the MF Global scandal should teach us anything, those who print money will stop and nothing to keep the public in the dark, and the value of gold down to deny the worthlessness of the Euro and the Dollar.

Corzine to tell Congress he knows nothing in Congressional hearing today

Former MF Global CEO Jon Corzine has already pulled out the Angelo Mozillo card, and issued a testimonial letter that he knows nothing about the loss of money at MF Global, and especially the losses to individual customer accounts.

Corzine Testimony


As we now logically, the chances of Corzine being completely ignorant to the workings of his own company are between slim and none, but the onus of course is on Congress and the incompetent US regulators to prove otherwise.  Back in 2008, fraudulent CEO's got away with their actions, and chances are likely, Corzine will skate through once again because of his massive leverage with the Obama administration.

And once again, investors who trusted the system will be out $1.2 billion dollars with little or no compensation.

Wednesday, December 7, 2011

Investors taking money out of the markets despite recent market gains

Last week, the stock markets rallied for more than 700 points worth of gains after the Thanksgiving holiday, and Federal Reserve intervention in Europe.  However, when you look closer, you will see that the majority of trades were done by insiders, and algorithmic computers. A new report out today shows that more Americans and retail investors actually pulled their money out of the markets, at a pace that was greater than anytime before the S&P Downgrade of the US.

As if we needed another confirmation that the sad joke of a market has now succeeded in driving virtually everyone out courtesy of precisely the kind of bullshit we saw in the last 30 minutes of trading today, here comes ICI with the latest weekly fund flow data. It will not surprise anyone that in the week in which the S&P rose by a whopping 8 points on absolutely nothing but more lies, rumors and innuendo, US retail investors pulled a whopping $6.7 billion from domestic equity funds: the most since the week after US downgrade when a near record $23 billion was withdrawn. Only unlike then when the market bombed, this time it simply kept rising, and rising, and rising. - Zerohedge

Picture courtesy of Zerohedge

As I recently stated on the Angel Clark radio show last weekend, retail investors are NOT buying into the stock markets, and all that is left are insider brokerages using FED and PPT money to prop a dying horse.

New report shows that gold is not only prudent but vital to a balanced portfolio

The debate over how to hold a balanced and equitable portfolio has been argued over for ages, with many paradigms being shattered as one economic crisis replaces another.  From buy and hold, to diversification, to high-risk young, low-risk old strategies, the number of ways to invest are as prevelent as the number of brokers.

But a new independant study on investing shows that in today's economic environment, holding and owning gold is not only prudent, but vital for both wealth protection, and system breakdown protection.

The independent research from highly respected New Frontier Advisors (NFA) confirms the importance of gold as a portfolio diversifier to investors in Europe and to investors exposed to the euro.
 During a period of extraordinarily serious economic uncertainty in the Eurozone, continued concerns about economic growth in the US heading into an election year, and the possibility of an economic slowdown in China, the World Gold Council (WGC) wanted to examine the relevance of gold as a strategic asset for euro-based investors to protect their portfolios and to mitigate the systemic risks being faced.
The report, ‘Gold as a strategic asset for European investors’, commissioned by the World Gold Council, explores gold as a strategic asset across five sets of asset allocation studies, including four using historical data spanning 1986 to 2010, and one using the 1999 to 2010 time frame.
 The third party research builds on the now considerable research and academic literature showing that gold adds significant diversifying power due to its low or negative correlation with most other assets in an investment portfolio.
 Gold’s relevance as a strategic asset is continuing to grow. This will continue in a world facing the real risk of a global recession and even a Depression, poor investment returns, currency devaluations and wars and very high monetary and systemic risk.
 Put simply, when used as a foundation asset, gold has preserved wealth throughout history and again today.
 Gold’s unique properties will protect savers and investors in Europe and internationally against the monetary and systemic risks being faced in 2012 and in the coming years. - Goldcore

While this study focusses mostly on Europe, all one in America needs to do is go back three years and see how close our own economic system came from default and collapse.  The environment here and abroad is 10 times worse than 2008, and the opportunities for currency collapse are growing, while gold remains constant as the sole hedge against that collapse, and a vital part of anyone's portfolio in today's market.

Bank analyst in Europe finally gets it as he advocates gold, food, and guns

Serious preppers know the three G's (gold, guns, and God... not in that order), but it finally appears a banker for UBS has realized the times we are living in, and is advocating citizens to stockpile just that.

Today, Larry Hataway has released yet another sequel to the original piece, focusing on this so very critical week for Europe, which as Olli Rehn said, must find a solution by Friday or see the EU "disintegrate", in which the vivid imagery, loud warnings and level of destruction are even greater than before.
… captured probably the best in Hatheway's recommendations of assets to be bought as a hedge to a Euro collapse: "I suppose there might be some assets worthy of consideration—precious metals, for example. But other metals would make wise investments, too. Among them tinned goods and small calibre weapons." But even that is nothing compared to the kicker: "Break-up runs the risk of becoming one wretched scenario. Sadly, however, it can’t be ruled out, just as it would have been improper to rule out the horrors of the first half of the 20th century before they happened." And there you have it: a reversion by Europe to the perfectly stable system from a decade ago, is now somehow supposed to result in World War. And with that the global banking cartel has official jumped the shark, just like the FT's latest rumor earlier today did the same by indicating that the well of European "bailout" ideas has officially run dry. - Zerohedge

You know the end of the world is coming when the giant sucking sound coming out of the banking industry is prudence and honesty of what the RIGHT investments for consumers really ought to be.

For the children: Spain's austerity measure lead to toilet paper limits in schools

Nations rarely make the right choices when it comes to budget cutting, and it appears that in Spain, this is no exception.  Spanish debt and massive unemployment in their recession is leading the country to impose stringent austerity measure, to include obscure cuts for children in schools.

Such as... cutting back on toilet paper.

The latest edict issued by the region’s ministry of education instructs state schools to cut “excessive consumption” of toilet roll among pupils and limit the quota to a maximum of 25 metres per child per month.
This most recent penny saving measure comes amid widespread cuts to education budgets across Spain that has led to regular protests in the streets by teachers. – UK Telegraph

It is sad, but historically accurate that children seem to always feel the brunt of tough economic time, especially when the excrement hits the fan.
And there is nothing left to wipe it off.

Tuesday, December 6, 2011

Watch live hearing on whether Congress should be exempt from Insider Trading Laws

Recent stories have manifest about Congressmen, particularly Nancy Pelosi and several Republicans, profiting on insider information they used to buy into IPO's or stocks that benefitted from legislation they sponsored.

Today, a hearing is taking place over the lawful and ethical ramifications for Congress of being allowed to trade on insider information, while it is a crime to every other American.

You can see the hearings by going to CSPAN, which will make them available on the net shortly.

http://www.c-span.org/Events/Insider-Trading-and-Congress/10737426032-1/

In the end, I wonder how Martha Stewart feels if the end result of this hearing is a continuation of the status quo?

Monday, December 5, 2011

MF Global lawsuit bypasses company and goes straight to Jon Corzine

Since the CFTC, Attorney General, Obama administration, and every regulator refuses to touch Jon Corzine after the MF Global theft and scandal rocked the commodities world, two former employees have bypassed a lawsuit agains the company and went straight for the man himself on failed fudiciary responsibility.

And as of today, two former employees have proceeded to sue Jon Corzine as fins.com reports. "Two former employees of MF Global have filed a class-action lawsuit against the firm's former Chief Executive Jon Corzine, other senior executives and board directors on behalf of themselves and current and former employees who acquired stock in the company while Corzine led the firm. The lawsuit, filed in the United States District Court for the Southern District of New York, alleges that the defendants provided false information regarding the company's financial condition and made statements that artificially inflated the stock price." Jon Corzine and the board breached their fiduciary duty to their employees and destroyed their careers and retirement savings," Jacob Zamansky, lead counsel for the plaintiffs, said in an email. - Zerohedge

The debate between Bernie Madoff and Jon Corzine comes down to who is protected by the powers that be and who isn't.  Bernie had the hammer brought down on him, while Corzine to this point has been touched with kid gloves.  However, for employees who lost everything because of the massive fraud implemented by the former CEO, they could care less about his political connections and appear to want to make him pay in civil court, which is outside the jurisdiction of his friends Biden and Obama.

Americans lining up for foodstamps like there is no tomorrow

Food stamp recipients just crossed 46 million Americans in the latest report from the Supplemental Nutrition Assistance Program (SNAP).  Last month, 120,000 Americans may have found a job, but 423,000 fell below the income limits and became eligible for the EBT.



Makes us all want to pull out our Karaoke machines and sing our EBT anthem.


Hockey fans have the most entertaining ways of giving to charity

Many hockey fans know tradition of throwing hats (or octopi in the case of Detroit) onto the ice in recognition for scoring a hat trick in a game.  The traditon of throwing things onto the ice however, is not limited to idol worship as these fans in Calgary prove.  For the 17th year in a row, fans of the Calgary Hitmen show their philanthropic side during the Christmas season by throwing stuffed animals onto the ice after the first goal.


Who says you can't have fun giving to charity?  The 25,000+ stuffed animals and teddy bears will be going to a great cause, as they will provide gifts to children's hospitals.  And in giving, these hockey fans certainly have a ball doing so.

Middle East tensions bring rising oil prices as crude crosses $102 per barrel

As tensions in the Middle East, particularly Iran and Syria, continue to boil, the growing price of oil remains the constant consequence to the West for intervening in the affairs of oil nations.

With WTI breaking $102 and Brent over $111 this morning, driven by Iran and Syria tensions, it would seem tough for a nation exporting its way to success, that is so dependent on both domestic consumer and energy to grow 'as expected' with energy premia so high - or perhaps the justification is the energy sector will carry the S&P through the next quarter as earnings expectations are cut. Nevertheless, as Reuters points out, the risk of supply disruptions remains high. - Zerohedge

Couple this with new predictions for 2012 by Bank of America for $250 oil, and the future for the economy has taken another hit that will deepen the recession (or depression) we are currently in.

Vice President Joe Biden brings encouragement to the Greeks by joking about bailouts

Joe Biden is not the sharpest tool in the shed, in fact, it is well documented that plagarism is not just a random occurrance for the US Vice-President, but an addiction.  However, this did not keep the bumbling buffoon from joking about the plight of the Greek peoples, in a statement that intimated he came bearing gifts (bailouts).

(Joe Biden's plagarism documented)

Vice President Joe Biden, now best known for being the man who relies primarily on Jon Corzine for financial advice, continued his recent roll of epic linguistic blunders this morning. As Reuters reports, the VP, "joked during a visit to debt-choked Athens on Monday about bringing money to help Greece out of its deepest financial crisis in decades. Introducing a member of his delegation during a meeting with Greek President Karolos Papoulias, Biden said: "This man represents the Treasury department. He's brought hundreds of millions of dollars." His comments drew laughs from both the Greek and U.S. delegations." - Zerohedge

It is a sad state of affairs that when the western world is grasping for even a modicum of leadership, the US diplomacy corps sends in the clown.

Friday, December 2, 2011

New jobs numbers not what they seem as they actually lose traction despite the lower unemployment rate

This has been the week of the 4-sigma manipulation for the Obama administration regarding government reports.  No investor with half a brain cell ever relies upon them anymore, and the hoopla today from the jobs report is just another indicator that truth out of Washington is simply a Orwellian drama.

And every time we rerun this calculation, the number of jobs that has to be created to get back to baseline increases: First it was 245,500 in April, then 250,000 in June, then 254,000 in July then 261,200 in October [and finally 262,500 in November] . As of today, following the just announced "beat" of meager NFP expectations, this number has has just risen to an all time high 262,500 263,700. This means that unless that number of jobs is created each month for the next 5 years, America will have a higher unemployment rate in October 2016 than it did in December 2007. How realistic is it that the US economy can create 15.8 million jobs in the next 61 60 months? We leave that answer up to the US electorate." - Zerohedge

The primary reason for the drop in unemployment was tied to two factors... one, and increase in TEMP JOBS due to the holiday shopping season, and secondly, a MASSIVE drop in the number of people on the unemployment clain roles who dropped off and now arent counted on any record.

MF Global CEO and friend to the Obama administration called to testify before Congress

Well, the only question left for the American people besides 'show me the money' in the MF Global theft and scandal is whether Congress will actually hold former CEO Jon Corzine accountable, or if this is just another Mozilla dog and pony show in front of the cameras.

Lest we forget of course, Jon Corzine is as vested an insider as they come, and is extremely tied to the Obama administration as an economic advisor, and campaign fundraiser... so if any charges do come against the corrupt Goldman Sachs CEO, governor of New Jersey, and all around friend to Obama, the pardon card may already be sitting there letting the ink dry.

Ticketmaster settlement: Everyone who bought tickets could receive a rebate

After several years of litigation, a settlement against Ticketmaster for imposing surcharges on customers without their knowledge has finally been ruled upon.  Beginning next year, everyone who bought a ticket through their online or retail stores could receive accumulated credits towards ticket purchases.

Because of a proposed class action settlement, Ticketmaster is being forced to credit $1.50 per ticket order (up to 17 orders) to customers due to the fact that they profited off of "processing fees" without declaring as much.
And despite the reparations, Ticketmaster can continue to profit off transactions — they just have to say they're doing so on their website. – Yahoo Finance

A boon for concert goers indeed, but the question remains... who kept their receipts going back a decade or more?

Thursday, December 1, 2011

Peter Schiff explains in easy terms what QE3 and the Fed's intervention will do

Financial manager Peter Schiff of Euro Pacific did a video blog yesterday on the Fed currency intervention, and start of backdoor QE3 to the markets.  In understandable terms, the repurcussions will result in this:  The dollar will weaken, inflation will rise, and gold will soar. Gold was up more than $30 today, and the dollar got crushed.

Here is the 5 minute video blog.

Economic martial law: Gerald Celente predicts US financial crackdown in early 2012

In a recent interview with Lew Rockwell, trends forecaster Gerald Celente laid out his view of where the US financial and banking system is headed, especially as global debt starts to consume banks and nations at a faster and faster rate.

"its coming down... I dont care who your money's with, its not safe unless you have it."

"And my belief, and this is going to be a Top Trend of 2012, is that, in the new year, they are going to bring down the gavel on the system.  They are going to pump it up to soak every last penny from the suckers to spend money on Christmas stuff they dont need.  And after that, after the Christmas holiday's over, then were going to get the bank holiday... some form, whether its that or not, some form of economic martial law."

You can listen to the entire interview below, and this specific prediction begins at the 17:53 mark.