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, 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.