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?

Tuesday, February 28, 2012

Planned Parenthood using your taxpayer dollars to fund and promote early age sex

Planned Parenthood is an organization that goes beyond the basic counciling of parents to be, and assistance with adult age citizens in alternatives to child bearing.  Originally created by Margaret Sanger to help promote Eugenics in black communities and larger families, the institution has become a staple of taxpayer funded abortions and family planning.

"The most merciful thing that a large family does to one of its infant members is to kill it."
Margaret Sanger, Women and the New Race   (Eugenics Publ. Co., 1920, 1923)

Now the organization is moving into the realm of teen and pre-teen sexual counciling.

In an expose on Planned Parenthood, the American Life League breaks down several publications, programs, and agendas that seek to create a sexual lifestyle for children as young as 10 years old.


The video exposes a book used by Planned Parenthood’s sex educators for 10-year-olds with graphic images about how to masturbate, put on a condom and have sexual intercourse.
“If a dirty old man showed this book to kids in a park, he’d be arrested,” continued Sedlak. “Why does Planned Parenthood, a taxpayer-funded organization, get to distribute these books to our children and get more government money?”

The video also exposes Planned Parenthood’s S.T.A.R.S (Seriously Talking About Responsible Sex) program, which required teens to go see Capital Pride, a parade of scantily clad drag queens, gay couples kissing and men in thongs dancing on stage.
“Planned Parenthood wants kids to choose them for their sexual education over their own parents,” said Sedlak. “They want to be the trusted friend and advocate for kids of all ages. They know that a conversation about sex with a stranger or browsing a Planned Parenthood website about teen sex is easier than talking with their parents. The abortion giant has no problem using tax dollars to exploit that fear and make money off those kids.” – Life News



Take a look at the video and see just where your tax money goes.  In the end, government waste isn't about providing for America's needs, it's about using your money to further agendas.

Iran begins taking payments for oil in physical gold

It's now official.  Iran is accepting gold as payment for oil sales instead of US dollars.  The gauntlet has now been thrown in the face of both Europe and the US, who have little choice but to prepare for war since their currencies and economies are declining fast.

Gradually it appears this is increasingly the case following a just released Reuters report that "Iran will take payment from its trading partners in gold instead of dollars, the Iranian state news agency IRNA quoted the central bank governor as saying on Tuesday." - Zerohedge

In 2003, Iraq made this same play where they stopped accepting dollars for oil sales, and it lead to the provarication by the West that they had WMD's.  Similar to Iran's nuclear program, which Israel has said does NOT contain nuclear weapons at this time, the act of removing sales from the petro-dollar will bring much more angst to the US than Iran becoming a nuclar country.

Americans can now be prepared for lies and excuses by Washington to go to war, as we are now already at war with Iran, but economically, nor militarily.

Housing recovery in full swing (not) as home prices decline for 8th month in a row

Shovel ready housing recovery?  Not quite, as the latest Case-Shiller report out for January shows home prices declining for the 8th month in a row, and are only expected to continue falling as new rounds of foreclosures hit the market after the Attorney General deal.

The December Case Shiller came, saw, and shut up all those who keep calling for a home price recovery. The Index printed at 136.71 on expectations of 137.11, with the prior revised to 138.24. The top 20 City composite was down -0.5% on expectations of a 0.35% drop. 18 out of 20 MSAs saw monthly declines in December over November, with just the worst of the worst - Miami and Phoenix - posting a dead cat bounce, rising 0.2% and 0.8% respectively. And granted the data is delayed, but the fact that we have now had 8 consecutive months of home price declines even with mortgage rates persistently at record lows, and the double dip in housing more than obvious, can we finally shut up about a housing bottom? Because as Case Shiller's David Blitzer says: "If anything it looks like we might have reentered a period of decline as we begin 2012.” - Zerohedge

Not the best news for President Obama as his 3 year promise to get the economy out of recession has failed, and his prediction of a one-term Presidentcy looms on the horizon.

Americans to feel the real angst of inflation with rising alcohol prices

Oil and gasoline inflation?  Food inflation?  Try rising inflation for alcohol.

As in the Great Depression and Prohibition, the desire to consume alcohol transcends many ethical and physical needs in the lives of many Americans.  This is why the rising cost to buy beer, liquor, and wine may have a much larger consequence over time than rising prices in food, which the government is more than happy to subsidize.

But if there is one thing that is sure to kindle the revolutionary spirits it is the soaring price of booze. As it just so happens, ships are parked in the Boston harbor with crates of Grey Goose prepped for tossage overboard as we speak. As the following chart of alcoholic beverage inflation indicates, courtesy of John Lohman, January saw the biggest month over month spike in booze inflation in 20 years. In other words, about 90% of all traders alive today have never seen a bigger jump in liquor inflation in their lives. - Zerohedge



So drink up America!  Or better yet, go invest in that beer making device or personal still since the price of food commodities are at the moment cheaper than the finished products.

Friday, February 24, 2012

Independent study determines Ron Paul as only candidate who would cut US debt

In the 2012 election campaign, Americans hear many proposals and promises by candidates saying they would cut the deficit, and force fiscal responsibility onto Washington and the national debt.  However, in a new study by an independent source, Congressman Ron Paul comes out as the single and only candidate who would actually cut spending, and move to cut the national debt.

Budget Office


And here is a chart provided to show past promises made, kept, and instituted by the candidates running for President.

President Obama continues his reign as the world's greatest gun salesman

With global affairs become more dire and risky each day, putting the complate onus on President Obama for Americans choosing to purchase guns and disaster preparedness gear at record levels would be stretching the truth.  However, since Obama took office in 2009, gun sales have increased more than under any other President, making Obama the world's greatest gun salesman... both for his policies that have made America more dangerous economically and globally, and for his stated plans to impact the 2nd amendment for citizens.

This chart, provided by ammo.net, shows the raw data of gun sales that have taken place since President Obama became the leader of the free world.


Forget Greece as US debt per capita now highest in the world

While the Greek populace deals with a debt issue that is on the precipice of driving them into default, they are but one of the many industrialized nations who have sacrificed their future for a hamburger today.  Greece's debt issues are massive, but they are actually second in the world per capita to another country, which just happens to be the United States.



Chart courtesy of the Senate Budget Committee


Oil prices: Expect gasoline prices to rise for a long time moving forward

There are several factors that are leading the way in higher oil prices, and for the American people, higher gasoline prices.  These factors are so powerful and so numerous that there is little expectation they will fall anytime soon.

1.  Growing concerns with Iran and the Middle East

With Israel, the US, Syria, Iran, and now Turkey all hedged for a showdown in the Middle East, one small event could trigger an instant stop in the flow of oil to both Europe and globally.  Iran is already cutting off oil shipments to Britain and France because of economic sanctions, and this has led to a rise in WTI where record highs are already taking place in respect to Euro prices.

2.  US exporting more oil than it imports.

You would think that the US government would consider its people first when it comes to the economy and to gasoline prices, but a new study proves this is not the case.  For the first time ever, US oil companies exported more oil than we imported, and validates concerns that the Obama administration is bought and paid for by the oil cartels.  All one has to do is go back to last year when the President loaned Brazil $2 billion to help their offshore drilling, while at the same time, cutting off our own drilling in the Gulf of Mexico.

3.  Devaluation of the dollar and price inflation.

Unlike 2008 when Congress declared the need to print money to stave off bank insolvency, the Federal Reserve is not publically announcing their bond buying and QE efforts.  However, the markets are now showing exactly what the Fed's actions are resulting in.  Food price inflation, coupled with the massive rise in gasoline prices is intimately tied to how central banks are devaluing the dollar.  Simply look at this.  In 2007, when oil reached a new high of $145 per barrel, gas prices were ranging between $4.50 and $5.00 nationwide.  Now, oil has only risen to $108 a barrel, and yet in some places in Florida and California, the price has crossed $6 a gallon.

4.  Keystone pipeline

President Obama has nixxed the building of a pipeline coming from Canada which would increase oil imports at lower prices into the US, and instead has chastised oil companies and speculators as being the problem for gas prices.  This of course is simply a scapegoating mechanism by the President in an election year, and the markets are rejecting his assertions by going higher... almost by the minute.  You can see this video by ABC where a reporter talking about gas prices has the prices change by .10 in less than 2 minutes while on the air.

video platformvideo managementvideo solutionsvideo player


Like in 2007, America is coming to a crossroads in energy prices, inflation, and a coming crisis that today's gridlocked Congress, and denying President are ill prepared to address.  Leadership requires acknowledging the problem, understanding the problem, and offering solutions to the problem.  That is, unless like President Obama's prior actions, he and Congress are part of the problem.

Wednesday, February 22, 2012

Anonymous adds fuel to Greek Fire by threatening to delete all citizen debts

If the modus operandi of the banking elites is to get nations and citizens into debt so they have no choice but to give up their rights and sovereignty, then the best response of course is to wipe out all that debt.

Hacker group Anonymous appears to realize this, and has joined in on the Greek bailout debate by threatening to delete all citizen debts with the stroke of a key.

If there is one war that Greece could not afford to join, that is with the global computer hacking collective known as Anonymous. Yet as of minutes ago, that is precisley what happened, after Anonymous, as part of what it now calls Operation Greece, took down the Greek Ministry of Justice (http://www.ministryofjustice.gr/). While the pretext for the hacking appears to have been an arrest of the wrong people, is seems to have angered Anonymous to the point where they have left an extended message of demands on the Greek website, warning that unless the IMF withdraws from the country and the government resigns, all debts of Greek citizens will be wiped clean. - Zerohedge

When politicians choose bankers over their citizens, the public needs a superhero to save them.  In this case, it is an anti-hero who's modes and methods don't always correspond with the needs of the people, but when they do, it can go a long way to evening the playing field.

Tuesday, February 21, 2012

Gold surges once again back over $1750 an ounce

Gold responded this morning to the validation of a Greek bailout by moving up more than $20 to a nominal high of $1758.  This break over $1750 is in response to the bailout being tied to new and massive money printing required by the central banks to save Greece.

…we said "As a reminder, when gold was at $1900 last summer, central banks had pumped about $2 trillion less into the markets. We expect the market to grasp this discrepancy shortly." With gold about $30 bucks higher, the market is finally starting to "grasp it", and is now back to $1755, as silver passes $34. - Zerohedge



$1800 should not be too far away as the next round of QE infinity begins to bail out the system once again.

California welcomes America to $5 gas prices

A customer of Gasbuddy.com today posted a gasoline price in the state of California that to date, appears to be the first location in the continential United States to have prices over $5 a gallon.


$5.04 – Regular Grade

Bo-Gas    6 Wharf Rd & Brighton Avenue in Bolinas, California

Billy3369 - 4 hours ago – California Gas Prices, Gas Buddy.com

With oil prices up another $1.43 today, and having crossed $105.00 per barrel over the weekend, chances are very good prices will rise nationwide towards the $5 mark as events escalate both in the Middle East, and in the central banks increasing money printing.

Friday, February 17, 2012

Taxpayers to pay bank settlements through Obama administration program

Remember just a week ago when the state Attorney Generals came to agreement with the banks on a settlement for the robo-signing and mortgage fraud during the housing bubble and credit crisis?  Well, for the taxpayers, it looks like it wasn't so great a deal after all as new findings show an Obama Administration program will allow the banks to pay the states out of funds provided by taxpayers.

US taxpayers are expected to subsidize the $40bn settlement owed by five leading banks over allegations that they systematically abused borrowers in pursuit of improper home seizures, the Financial Times has learnt.

...However, a clause in the provisional agreement – which has not been made public – allows the banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement, according to people familiar with the matter. The existing $30bn initiative, the Home Affordable Modification Programme (Hamp), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications. – Financial Times via Zerohedge

HAMP is a program under the Obama administrations Making Homes Affordable program, and is taxpayer funded.

About Making Homes Affordable:

The Making Home Affordable Program (MHA) is an important part of the Obama Administration's comprehensive plan to stabilize the U.S. housing market by helping homeowners get mortgage relief and avoid foreclosure. To meet the various needs of homeowners across the country, Making Home Affordable programs offer a range of solutions that may be able to help you take action before it's too late.

Crony capitalism at its finest.  Not only can the Obama administration CLAIM they brought legal action against the banks in the name of the homeowner, but he will also be garnering favor on Wall Street by paying off their settlement agreement with taxpayer money.

Crime and prisons are the new economy

As more and more incarceration is being outsourced to private companies, an interesting dychotomy is occurring between the state, and these entities.

Companies are MANDATING that states arrest more poeple, and ensure quotas to the prison system.

The nation’s largest private prison company is offering cash-strapped state governments to buy up their penitentiaries and manage convicted criminals at a cost-savings. But there’s a catch…the states must guarantee that are there are enough prisoners to ensure that the venture is profitable to the company.
Corrections Corporation of America (CCA) has reached out to 48 states as part of a $250 million plan to own existing prisons and manage their operations. But in return CCA wants a 20-year contract and assurances that the state will keep the prisons at least 90% full. – All Gov.com

Just like the old cliche regarding life insurance, where sometimes a person is more valuable dead than alive, so to is it becoming more profitable to the state when someone is incarcerated than free.

Thursday, February 16, 2012

Central banks continuing to buy physical gold in record quantities

Central banks, particularly in Asian countries, are continuing to dump US treasuries and diversify into more gold accumulation at record numbers.  Even Europe, which is trying to sell the world on toxic and sovereign debt, is purchasing physical gold behind the scenes with the knowledge that the game is almost over for their fiat economies.

Global gold demand was worth a mere US$205.5 billion which is not a substantial sum considering the size of global capital markets today. It was the first time that global demand has exceeded US$200 billion and the highest tonnage level since 1997.

Central banks were net buyers of gold and their demand surged nearly 6 fold (570%) to 439.7 tonnes in 2011 - compared with 77 tonnes in 2010.
Demand for gold bars and coins accelerated, reflecting a blend of positive influences including concern over the financial health and future viability of the euro area; high inflation in some countries; positive price expectations; and the relatively poor performance of a range of alternative investments. – Goldcore via Zerohedge



Chart courtesy of Bloomberg and Goldcore

Bond market showing cracks as sell orders escalating around the world

Contrary to the way the talking heads on CNBC and Bloomberg try to spin the stock market as the barometer of the economy, the fact remains that it is the bond market that removes all doubt.

And that market appears to be escalating towards fatal as bondholders in both the US, and around the world are selling off sovereign and corporate debt at an increasing rate.

It is only appropriate that in the days after Valentine's day, the theme of dumping is revisited. Specifically that of securities. As was pointed out yesterday following the latest TIC data, there was a lot of dumping of US Treasurys by foreign official authorities, with both China and Russia (but not only) proceeding to sell a demonstrative amount of US paper.
And in a stunning display of reciprocity, US residents, not content with selling of US stocks as retail outflows soared in December, also proceeded to dump the rest of the world en mass, as the net sale of foreign securities by US Residents soared to an all time high. US Residents "sold $38.9 billion of [foreign securities] on a net basis in December. - Zerohedge

Wednesday, February 15, 2012

Rats leaving a sinking ship as both Russia and China dump US Treasuries

Russia and China are two major holders of US debt instruments, but perhaps not for long.  New data is showing that Russia has been selling vs buying US Treasuries now for 14 straight months, and China, which is the second largest holder of US debt paper only to the Federal Reserve, has cut its exposure to their lowest point in a year.

Think the sovereign nations who hold interests in the Middle East don't know what is coming for America?

Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. - Zerohedge



Charts courtesy of Zerohedge

Tuesday, February 14, 2012

Poor in America growing as government forgets those who lost jobs and homes

There has always been homeless in America.  From the mentally ill and unstable, to military veterans who could not cope with society upon their return, to those who simply chose to not live according to the regimented structure of the economic paradigm.

In a new expose by the BBC on February 13th, the media takes a look at the poor in America, and how many are simply victims of the economic destruction that has taken place since the credit crisis, bursting of the housing bubble, and the sheer lack of opportunities in the once wealthiest nation in history.



Video courtesy of Leenicklen

The future of America can be seen through the eyes of Detroit

The Economic Collapse blogsite came out February 13th with a unique perspective of how American as a whole might look in the future through the eyes of one of its former economic marvels;  The city of Detroit.  Before its fall, and near fatal status, the motor city was known worldwide for its industry and production, but today is almost a ghost town where police limit their response areas, and complete sections of the city are in total disrepair.

The Economic Collapse has compiled 20 things we can learn from the death of Detroit, and here are just a few.

#1 People don't want to live where the stench of failure and decay is constantly in the air. Back in the 1950s, Detroit was a teeming metropolis of approximately 2 million people. According to the 2010 census, only 713,000 people live in Detroit today. The U.S. Census Bureau says that Detroit lost a resident every 22 minutes during the first decade of this century.

#2 When the economy falls apart, desperate people will do desperate things and many homeowners will fight back. Justifiable homicide in Detroit rose by a staggering 79 percent during 2011.

#4 When there is not enough money to go around, a lot of local governments will choose to cut back on police protection. Ten years ago, there were approximately 5,000 police for the city of Detroit. Today, there are less than 3,000.

#6 Economic decay is a breeding ground for chaos and violence. Last Friday and Saturday, a total of nine shootings were reported in the city of Detroit.
#9 When criminals become desperate, they will steal literally anything that is not bolted down. In Detroit today, thieves have stripped so much copper wiring out of the street lights that half of all the lights in some neighborhoods no longer work.

#11 One of the clearest signs of decline in America is the state of our education system. Only 25 percent of all students in Detroit end up graduating from high school. Many other major cities will soon have graduation rates similar to Detroit.

#13 A growing percentage of Americans cannot even read or write. This is a very frightening indication of what the future of America could look like. According to one stunning report, 47 percent of all people living in the city of Detroit are functionally illiterate.

#15 The employment situation in America is a lot worse than the government is telling us. An analysis of census figures found that 48.5% of all men living in Detroit from age 20 to age 64 did not have a job in 2008.

#16 When a major city becomes a hellhole, home prices fall like a rock. The median price of a home in Detroit is now just $6000.

The U.S. economy never recovered from the last major financial crisis, and now another one is on the way.

As the economy crumbles, so will the fabric of our society.

The American people are terribly spoiled and they do not possess the character to handle depression-like conditions with grace and dignity.

Retail sales fall at record level in January invalidating belief in economic recovery

As with any and all government reports on the economy, the devil is always in the details.  In this case, the unadjusted numbers for January's retail sales, which actually fell so much that it resulted in the largest fall in retail history.

So much for the continuing propaganda that the US economy is in recovery.

…when looking at the January headline retail sales data, which naturally was a smoothly continuous line on a Seasonally Adjusted basis, rising from $399.9 billion in December to $401.4 billion in January, something rather odd happened in the Unadjusted data set: the plunge from $459.8 billion in December to $361.4 billion in January, or -$98.5 billion in one month, was the biggest one month drop in retail sales in history. - Zerohedge


Chart courtesy of Zerohedge

Hope and change... it's worked in America for the past four years.

Monday, February 13, 2012

Ron Paul plays Moonlight Graham in 1983 Congressional baseball game

Presidential candidate and Texas Congressman Ron Paul has been succcessful in nearly every endeavor he has chosen to pursue.  From Medical Doctor, military Doctor, Congressman, and leader of a conservative revolution, there is very little the man cannot do when he puts his talents towards it.

Including baseball.

Below is a clip of Ron Paul going 2-3 in the 1983 Congressional baseball game where, like Moonlight Graham in the Field of Dreams, he takes off his Doctor stethescope to don the pinstripes of the Houston Astros and looks like a true major leaguer on the diamond, as well as the House floor.



Video courtesy of bxtidre7

Gold: Do we believe Warren Buffett or the Chinese regarding the precious metal

Last week, Obama mouthpiece and billionaire investor Warren Buffett said that gold 'has no value'.  This of course is contrary to most other foreign governments, especially China, who are proving that gold very much has a place in the monetary world as the dollar continues to devalue and more nations seek to perform transactions using the precious metal.

Traders in Hong Kong say that the Chinese continue to buy gold on any weakness. Bullion buying from China and the rest of Asia (more below) may have led to the spike higher at the open in Asia.

"The Chinese guys are still buying. Whenever there is a dip in prices, they will buy. There's no change in their attitude," said a physical dealer in Hong Kong, who trades gold bars. "They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit.’’

Market focus tends to be almost solely on Chinese and Indian demand but demand is broad based throughout increasingly important Asian gold markets. Demand for gold remains robust in most Asian countries where consumers are buying gold as a store of wealth due to concerns about their local paper currency.  Goldcore via Zerohedge


US investors like Buffett have their assets tied to the dollar and the need to keep the fiat currency the sole choice in global transactions.  For the benefit of his holdings and for his investors, he must continue to preach the strength of the dollar, and discount gold as worthless even as the world moves away from the printed paper.

However, in a world where every government runs on fiat currencies backed by nothing but 'confidence', gold has been, and will always be the TRUE barometer of wealth, mostly in the long term, and occasionally as an investment in the short term.

Gas prices soar on dollar devaluation even as consumption drops to 10-year lows

One of the biggest misnomers in finance and economics today is that prices work according to supply and demand.  This was true when America performed in actual capitalist system, but since we moved to both fascism and crony capitalism, where corporations, banks, and government all work together at the betterment of themselves and not society, prices are fixed due to other factors such as dollar devaluation.

U.S. drivers used 2.8 percent less motor gasoline last year and consumed the smallest amount since 1999, the U.S. Department of Energy said Wednesday. Officials credited the decrease to more fuel-efficient cars and an aging population taking few trips.
Meanwhile, U.S. domestic oil production increased by more than 2 percent last year to 5.6 million barrels per day. – Des Moines Register
So... if consumption is way down, and production is actually up, should not gasoline prices be falling?  They should, except if you take into consideration the amount of money printing and currency devaluation being done by the Federal Reserve over the past four years, the amount of  inflation is being created by our own banking system, and not by a lack of products, or by higher demand.

In the end, Americans are being deceived by Fed Chairman Ben Bernanke.

Bernanke said that for now, the Fed expects overall U.S. inflation to remain low, and that the Fed is being “extremely vigilant” to make sure it does not wait too long before tightening money policy. He dismissed GOP questions about inflation worldwide, saying it is occurring in emerging markets, not the United States. – The Hill

Federal Reserve: Using the printing press to buy up America's assets

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.  – Attributed to Founding Father Thomas Jefferson
When the founding fathers of this nation rebelled against the rothschild owned central banks of Europe, they understood the end game for the elite in using debt and currency devaluation to steal physical assets from a nation.
The credit crisis of 2008, which was created by the US central bank through debt, devaluation, and bubbles has led to the last stage of the scheme... the ownership of physical assets.

Chart courtesy of Gresham's Law

Friday, February 10, 2012

Iran looks to overcome sanctions through international barter

As the US and European nations seek to force Iran to the negotiating table over their nuclear program through economic sanctions, the Middle Eastern nation appears to have created a contingency plan in dealing with this.

The barter system... which has been in the works for months between Iran, China, and India.

Yet going back to the Reuters story, it would be quite dramatic, if only it was not the case that Iran has been laying the groundwork for a barter economy for many months now, something which various other analysts perceive as the basis for the destruction of the petrodollar system. Perhaps regular readers will recall that back in July, we wrote an article titled "China And Iran To Bypass Dollar, Plan Oil Barter System." Specifically, we wrote that "according to the FT, China has decided to commence a barter system in which Iranian oil is exchanged directly for Chinese exports. The net result: not only a slap for the US Dollar, but implicitly for all fiat intermediaries, as Iran and China are about to prove that when it comes to exchanging hard resources for critical Chinese goods and services, the world's so called reserve currency is completely irrelevant." Seen in this light the fact that Iran is actually proceeding with a barter system, something that had been in the works for quite a while, actually puts the Reuters story in a totally different light: instead of one predicting the imminent demise of the Iranian economy, the conclusion is inverted, and underscores the culmination of what may have been an extended barter preparation period, has finally gone from beta to (pardon the pun) gold, and Iran is now successfully engaging in global trade without the use of the historical reserve currency. - Zerohedge

While the US continues to putt around playing checkers in foreign policy, China, India, and the land that actually invented the game (Persia/Iran) play chess.  Economic sanctions may actually be more the detriment to the US as it could quickly force the hand of Iran and China to bypass the dollar and petro-dollar, and open up oil sales in a much different currency.

PIMCO makes huge bet that Fed will monetize MBS

The world's largest bond insurer PIMCO has decided that not only will the Fed eventually monetize Mortgage Backed Securities (MBS), but will have no choice in the action.  They believe it so much that they have borrowed $88 billion to buy MBS's above what they currently control.

That's putting your money where your mouth is for sure.

...has meant one thing and one thing only: betting on the Fed monetizing Mortgage Backed Securities or bust. Well, in January he just took it to a whole new level. The fund has now borrowed a record $88 billion, or -35% of its AUM, in cash (shows how much he things of the dollar) and used the proceeds (together with dumping European sovereign bonds from 18% to 11% of AUM) to bet on MBS which now stood at a whopping 50% of the entire portfolio - the highest since July 2009 when QE1 was in full force. However, in absolute dollar terms, due to the growth of the fund's AUM, the actual bet on MBS has never been bigger, and at $125 billion, represents the biggest notional bet ever made by PIMCO. Treasury holdings of just over $100 billion with an effective duration of 6.33 complete the epic bet that the fund has now put on QE3. - Zerohedge

US Commodity Exchange lowers margins on gold silver and copper

It has been a while, but the Chicago Mercantile Exchange has decided to lower margin requirements after raising them six times last year on gold, silver, and copper.  The exchange gave no real reason for the new policy, but on the surface, this should be good news for metal investors.

It has been so long since the CME cut gold and silver margins that frankly we are a little bit stunned... In an extended announcement, which saw outright margins for virtually every commodity get cut, the CME just lowered Initial and Maintenance margins of gold (by 12%) and silver (13%), to $7500 maintenance for GC and $16000 maintenance for SI. Did the paper bull trap season just open? And how long before these are re-hiked by 15%, 20% or more? For now, however, this is certainly near-term bullish. - Zerohedge

Thursday, February 9, 2012

Obama using taxpayer money to buy election credit for November

As recently as 3 days ago, the 50 state Attorney General lawsuit against banks, MERS, and the massive foreclosures that took place because of Robo-Signing was at a standstill.  Then out of nowhere, the four states (NY, California, Florida, etc...) that had held off from a brokered agreement received a call from President Obama.

Within 24 hours, those states suddenly accepted the settlement, and now the banks will be shelling out a paltry $25-40 billion dollars for the trillions they made in fraudulent foreclosure game.  On top of this, the settlement will be as good as a taxpayer funded campaign donation for Obama, as states expect to use the money to help those who still have home refinance, and to buy off those who lost their homes with $2000 cash.

For those who don't understand what just happened, US banks just funded Obama's re-election campaign to the tune of $26-$40 billion.
Still, the agreement is the broadest effort yet to help borrowers owing more than their houses are worth, with roughly one million expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years.  - Zerohedge

Buying goodwill and elections in the final hour (year).  It's the American way in the land of crony capitalism.

Americans independence wanes as more people rely upon government than ever before

The Heritage Foundation just completed a new study on government spending, and 18 other critical areas where cost and dependence by the American people on government welfare and subsidies over self-reliance is at the highest point in history.

The Index of Dependence on Government generally works the same way. The raw (unweighted) value for each program (that program’s yearly expenditures) is multiplied by its weight. The total of the weighted values is the Index score for that year.
The Index is calculated using the following weights:
  1. Housing: 30 percent
  2. Health Care and Welfare: 25 percent
  3. Retirement: 20 percent
  4. Higher Education: 15 percent
  5. Rural and Agricultural Services: 10 percent
The weights are “centered” on the year 1980. This means that the total of the weighted values for the Index components will equal 100 for 1980, and 1980 is the reference year in comparison to which all other Index values can be evaluated as percentages of 100. – Heritage Foundation


With the scale going nearly exponential since 1980, the chances of a reversal become much slimmer as more people turn towards government than every before in their daily lives.  This chart can almost parallel the climb in National debt since the baseline year, and as such, the collapse of the economic structure will most certainly come at a time when the government no longer can afford to pay so much in welfare and benefits.

Tuesday, February 7, 2012

Since removal from the gold standard in 1971, all economic growth has been a debt induced bubble

Philip Coggan from NPR wrote a very poignant article today showing that since 1971, when Richard Nixon took the US and the dollar off the gold standard, every single economic growth phase has been tied to a debt induced, and debt created bubble, derived from every increasing money printing by the Fed, and borrowing by the government.

Coggan, who writes about finance for the Economist magazine, explains that before that time, the U.S. used gold to back the dollar; other countries could exchange their currency for American gold. But when President Nixon went off the gold standard, "essentially you had no limit on the amount of money that could be created and no limit on the amount of debt that could be created."
The result, he says: asset bubbles.
Debt was used to buy assets, which rose in price and then burst. He points to Black Monday in 1987, when global financial markets crashed and the Dow Jones industrial average fell more than 20 percent. Those same factors, he says, led to the dot-com bubble of the 1990s and the more recent housing bubble. When bubbles burst, central banks stepped in and cut interest rates to keep the system afloat.
"The result of all that was that it was kind of a one-way bet for speculators: Keep borrowing money to keep buying assets; central banks will always bail you out," Coggan says. "And that's why we ended up in this mess that we are in ... with lots of debts and central banks creating money to try and prop the whole system up." - NPR

And now, in 2012, we are at a point where no amount of money printing by the Fed, and no amount of borrowing by Obama and the Treasury can create or sustain growth in the economy.  Keynsian economics relies upon debt and borrowing to sustain economic growth, but at a certain point, money loses its value so greatly, that each successive scheme requires more and more printing than the prior bubbles.  Eventually, no amount of money will create a recovery, and the global economy is entering that point in history.

Watch Bernanke Live speaking to the Senate and lying about recovery with a straight face

Fed Chairman Ben Bernanke will testify before the Senate today, and try once again to indoctrinate the public and our elected leaders that he actually knows what he's doing, and that his polices are helping to create economic recovery... even though its been four long years with nothing to show for it but more debt.

Click below to watch his testimony.

Ben Bernanke Debates Economic Policy with Senators

Schools now teaching Communism over Capitalism in America

The Cold War may be over, but over time, the old Soviet Union may have accomplished part of its goals in the US educational system.  One of the main platforms of Leninism was to not focus on the adult generations, but to take over the schools and indoctrinate the young.

In a school in Des Moines, Iowa, that goal seems to have been achieved as the new curriculum for a Social Studies class not only lays out Capitalism and Communism, but by use of cartoons and NLP, indoctrinates the kids that Communism is a much better and happier economic system than Capitalism.

Using propaganda that could have been disgorged by the KGB, the flier seemed to elevate communism over “capitalism.”
Distributed in Theodore Roosevelt High School in Des Moines, Iowa, the lesson sheet includes a cartoon that purports to illustrate the differences between the two systems. In the left panel are two unhappy-looking workers with balls and chains tied to their ankles who toil away on one side of a machine while all the profit spills out the other side into a bag held by a smiling, stogie-smoking, portly business owner in a hat. It is labeled “Capitalism — In theory.” In the right panel, communism is presented “in theory” with two smiling workers standing relaxed at the same machine while all the profit comes back their way. – The New American


Courtesy of The New American

While the cartoon is slightly faded, in the caption for Capitalism it shows workers being held in place by a ball and chain, while the fruits of their labor go into the pocket of the rich.  On the other side, it shows Communism as being a system where workers are happy, and their fruits go towards the people, not the rich.

However... what the propaganda artist failed to draw was the soldiers holding rifles to the heads of the workers in Communism, which is historically correct in every nation that has ever adapted this system.

Friday, February 3, 2012

Propaganda continues as part time jobs make up large portion of today's job report

When an economy is bad, one usually has to dredge the bottom of the barrel to find statistics they can refinish and make look like good ones.  That appears to be the case with today's jobs report as not only did 1.2 million Americans fall off the benefits roll to no longer be considered... well, alive to the government, but it now appears that the propaganda of a new 8.3% unemployment rate is made up of record levels of part time workers.

In January, the number of Part Time workers rose by 699K, the most ever, from 27,040K to 27,739K, the third highest number in the history of this series. How about Full time jobs? They went from 113,765 to 113,845. An 80K increase. So the epic January number of 141.6 million employed, which rose by 847K at the headline level: only about 10 % of that was full time jobs: - Zerohedge


Chart courtesy of Zerohedge
Sadly, the administration is becoming like the former ruler of North Korea, who once declared he shot an incredible 38 under par back in the day, and like the government controlled propaganda of the Asian axis of evil, the BLS is now moving into the realm of Ripley's Believe It or Not.

Unemployment rate drops to 8.3% on 1.2 million workers fall off benefit rolls

For those who wonder how today's BLS job numbers of 243K could be enough to make the unemployment rate fall to 8.3%, we must always look for the seconday fact, ie... the one that the media rarely mentions, and that is, the number of people out of work who fell off the benefit rolls.

Government reports are written to make politcians look good, not to let the public know the actual amount of people unemployed, so when today's jobs report sent jubulence to the markets, few had time initially to see why the rate fell to 8.3%.

It was because 1.2 million people were no longer being counted as looking for work because their unemployment benefits had dried up.

it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that's not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. - Zerohedge



Charts courtesy of Bloomberg

So... it must be Obama election time again as the administration gears up to dazzle you with non-brilliance, and try to baffle you with BS.

Thursday, February 2, 2012

Government continues to borrow and spend like drunken sailors

It didn't take long for the White House to put pen to paper after the debt ceiling was raised last Friday.  In just five days, the government borrowed $120 billion in new debt, and like a drunken sailor on his last night before going out to sea again, the intoxication of no fiscal responsibility makes Washington very dangerous to your economic future.

Well, two days later, the dry powder is less than $1.1 trillion. In other words, in the past two days, total US debt increased by $120 billion, along the lines of our expectations, as the Treasury filled up all the G-fund cash it had pillaged to continue issuing debt throughout the month of January even though it was formally above the debt ceiling. What is more concerning, is that as the chart below shows, the trendline of US debt since the beginning of 2011 is no longer a straight line, but has slowly transformed into a parabola, the very same word used as the root in such other infamous words as, for example, parabolic.

It gets worse: even according to the drastically, and very unrealistically, downward revised borrowing expectations of the Treasury released yesterday, the US will issue $444 billion in debt in this quarter. Today's number means that in February and March alone Tim Geithner will raise another $310 billion, which will send total debt to $15.7 trillion as of March 31. What is the final debt ceiling? Just under $16.4 trillion. So the US will have $700 billion in debt issuance capacity for the 7 months leading into the presidential election (and 9 until the end of the year). - Zerohedge

So drink up America!  The Titanic is going down, and the band continues to play.

Wednesday, February 1, 2012

It must be election season as Obama brings out another fail mortgage program

Here we go again.  The Housing markets is still in freefall, and foreclosures are going to accelerate in 2012 as judicial rulings against homeowners in late 2011 open the door for the banks to take property without a note.  So what does President Obama choose to do about this for the American people?

Wait for it...

A new mortgage refinance program.

Yes, President Obama will seek to institute his third refinance program in three years, and like the other two his administration produced, the results will again be an Epic Fail.

In his State of the Union address, President Obama laid out a Blueprint for an America Built to Last, calling for action to help responsible borrowers and support a housing market recovery. While the government cannot fix the housing market on its own, the President believes that responsible homeowners should not have to sit and wait for the market to hit bottom to get relief when there are measures at hand that can make a meaningful difference, including allowing these homeowners to save thousands of dollars by refinancing at today’s low interest rates. – White House.gov


We hesitate to count off all the ways this new program is meaningless and will accomplish little for the American people who still own property that is worth less than they owe on it.  However, the most important thing to remember is:

Interest rates have been at historic lows for three years, and those that could refinance, did refinance.  Those that could not, did not.

The only way the government and the President could help the American people is to do what President Bush should have done in 2008 during the credit crisis... pay off most of the real estate debt, and mortgages to the banks.  This would have seriously helped people keep thier homes, while at the same time, infused trillions of dollars into the insolvent banks.  But of course we know that the Fed and taxpayers simply gave trillions to the banks, bypassing the American consumer, and they still were foreclosed upon by these institutions.

Three to four years after the crash of the Housing bubble will do little to really help those who are having trouble paying their mortgages.  The government can say and do all they want, but the banks are not lending, they are not refinancing, and no government program, without the power to punish banks that do not participate, is simply campaign rhetoric, for which President Obama is the master of.

Venezuela leading the way it throwing off the global banking cartel

There are very few things good about Venezuelan dictator Hugo Chavez, and in fact, you can count those things on one finger.

But that one thing is a big one, for Venezuela appears to be willing to put itself out on a limb and cast aside the global banking hegemony over the nation, and seek to control its own monetary future.

Two events over the past two days have shown just how dedicated Venezuela is.

1.    Venezuela Completes Repatriation Of 160 Tons Of Gold, Gold At 2012 Highs
2.    Venezuela Announces “Irrevocable” Withdrawal from World Bank’s Arbitration Body

“In two months, we’ve brought 160 tons of gold valued at around $9 billion back to Venezuela,” Merentes said on state television from the Caracas airport. “Today marks the last day of the mission.”

President Hugo Chavez in August ordered the central bank to repatriate the country’s gold reserves as a safeguard against instability in financial markets. The South American country, which has the 15th-largest holdings in the world, according to the World Gold Council, held 211 tons of its 365 tons of gold reserves in U.S., European and Canadian banks as of August. – Bloomberg via Zerohedge


The Venezuelan government has announced Venezuela’s “irrevocable” withdrawal from the World Bank affiliated arbitration body the International Centre for Settlement of Investment Disputes (ICSID).

 According to an official statement released by Venezuela’s Foreign Ministry on Wednesday this week, the move has been taken on the grounds of defending national sovereignty and “to protect the right of the Venezuelan people to decide the strategic orientation of the social and economic life of the nation”. – Venezuelanalysis.com


As with Libya, Iraq, and Iran, the Daily Economist wonders how long it will be before US and NATO warships head to South America to punish the Latin nation for even thinking to defy the global monetary oligarchy.