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.

Oh and this...

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

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.


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, - 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.