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?

Friday, March 23, 2012

CIties defaults could accelerate as Municipal Bonds stand on edge of collapse

On March 22nd, the End of the American Dream blog came out with 10 indicators that cities around the country could begin defaulting in greater numbers as both the pension funds and municipal bonds outstanding could be on the verge of a collapse.



Chart courtesy of the Wall Street Journal

#1 Moody's has downgraded Detroit's debt again.
#2 The city of Indianapolis is facing an unprecedented 75 million dollar budget deficit in 2012. City officials are warning that there may soon not be enough money to keep the streetlights on.

#3 Suffolk County in New York has declared a "fiscal emergency" after discovering that it is projected to take on a total of more than 500 million dollars of additional debt by the end of 2013.

#4 The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings. At last report, there were a total of 15 rolls remaining and after that those that use city restrooms will be on their own.

#5 Some cities are slashing expenses dramatically in an attempt to stay afloat.

#6 In New York, state officials are deeply concerned that city and local governments are paying their pension obligations by borrowing from the state pension fund. This is essentially like making your minimum monthly payment on a credit card by borrowing more money on that same credit card....

#7 Pension problems are catching up with a lot of cities all over the nation. For example, CBS News reported recently that the city of Central Falls, Rh0de Island has been forced to declare bankruptcy because of pension woes....

#8 Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history. At the time, they had accumulated a total of approximately 4.2 billion dollars of debt.

#9 Several other U.S. large cities have defaulted on their debts in early 2012

#10 In all, there have been 21 municipal defaults so far in 2012. The grand total of those defaults comes to 978 million dollars.


On top this these indicators listed, interest rates appear ready to move up outside the Fed's influence to control the lending rates.  Rates crossed 4% for the first time in several months in March, and the rate of foreclosures is now increasing after legal and legislative changes were made to the contract ownership barriers between banks and homeowners.

Lower tax receipts, coupled with rising inflation and the inability of cities to borrow money through bond auctions will accelaerate the collapse of many municipalities, and lead to greater unrest as city pension funds continue to shrink for retirees.

Thursday, March 22, 2012

Nanex: silver manipulation at the speed of light

For years, silver traders such as Erik King of KingWorld and Eric Sprott out of Canada have been preaching to the masses on silver manipulation done by banks such as JP Morgan to assist the Fed in propping up a dead fiat currency (dollar).  Their pleas have mostly fallen on deaf ears, except to those who hold a large stake in silver, and silver prices.

That changed on March 20th when undeniable evidence emerged from NANEX of the banking cartels using high speed computer algorithms to force the price of silver down at the speed of light.  So much, so fast, that it was pumping out 75000 down trades a second.

Courtesy of Nanex we now have direct evidence of just what the reflexive market (in which derivative products such as ETFs influence underlying assets) goes to town by taking silver to the woodshed at a whopping 75,000 times per second! From the broken market sleuths at Nanex: "On March 20, 2012 at 13:22:33, the quote rate in the ETF symbol SLV sustained a rate exceeding 75,000/sec (75/ms) for 25 milliseconds. Nasdaq quotes lagged other exchanges by about 50 milliseconds. Nasdaq quotes even lagged their own trades -- a condition we have jokingly referred to as fantaseconds." Translation: so desperate was the desire to crush silver at precisely 13:22;33, that the Nasdaq order flow directive ended up moving faster than light. - Zerohedge


It gets even better when NANEX provided the charts to prove it.




America's new job paradigm: Temporary hiring replaces permanent employment

President Obama has been very quick to use the recent BLS reports on new jobs and unemployment claims to justify his economic initiatives are working, and creating jobs for Americans.  But when you dig just below the thin veneer of manipulated data models, you will find a new and disturbing trend.

A large portion of new job hires are for temporary positions at lower wages and without benefits.

…the rising jobs are purely a quantity over quality trade off, as every month more and more temp jobs take the place of permanent ones, especially those of former professionals from the FIRE sector. In fact, in January temp jobs soared by the most on record, and the total number of temp workers was just shy of all time highs. Ironically, as this happened, discretionary online retail companies have seen their stock price soar to record highs. One of the primary drivers for this has been the increased "efficiency" at these companies' hubs - their warehouses. Which just happen to be staffed with temp workers. - Zerohedge

The Warehouse is the new means of running am internet based business at the detriment of a Main Street brick and mortar complex.  Companies like Amazon and CompUSA run completely out of the internet, and vast warehouses that are filled with temporary employees working 32 or less hours.

This allows them to undercut their competition through labor costs and limited benefit programs, but not unlike the 'Sweatshop' models of China and other Asian producers.

This infograph by Business Insurance.org shows just how the 21st century sweatshop in America works, and why it has grown because of the failed job policies of the second half of GW Bush, and the entire term of Barack Obama.


Courtesy of businessinsurance.org

The Mediterranean raping of gold continues as Turkey enters the scene

The one thing that is almost always confirmed when the banking cartels take over a nation by military, political, or economic means is that shortly after, the nation's physical gold reserves will be plundered and moved to secret locations outside the hands of the citizens who own it.



We saw this occur in Libya after the revolution that took place last year, and more recently in Greece, where the Troika forced a central banker (Papademos) onto the people, and quickly instituted a takeover of their gold holdings.

Now it appears that Turkey may be joining the gold takeaway movement as government officials are asking their citizens to trade their physical gold in for worthless fiat currencies so the psuedo-EU nation can use it as collateral to the central banks to pay off growing debt obligations.


The WSJ reports that "The Turkish government, facing a bloated current-account deficit that threatens to derail the country's rapid expansion, is trying to persuade Turks to transfer their vast personal holdings of gold into the country's banking system." The reason: "The push to tap into the individual gold reserves—the traditional form of savings here—is part of Ankara's efforts to reduce a finance gap that is currently about 10% of gross domestic product." In other words, "sequester" the population's hard assets (politely of course), and convert these to paper to fund the country's creditors, both foreign and domestic. Mostly foreign. - Zerohedge

For a system that continues to tell the world that gold is a 'barbarous relic', they sure are doing their utmost to rid nations of their yellow metal for their own benefit and accumulation.

Tuesday, March 20, 2012

Purchasing power for Americans drop another $50 billion as gas prices reach $4 a gallon

In a previous post, the Daily Economist showed you how for every .10 cent increase in gas prices, Americans lose $25 billion in discretionary income.  Well, as of March 20th, we can chalk up $50 billion that will now be siphoned from desired us by the common American into gasoline purchases because the average price has risen .15 to $4.00 a gallon.



Chart courtesy of Bloomberg

New Republican budget seeks to cut taxes and shrink tax system

The Republican party should know that any attempt to submit a budget before the Senate and the President will come to naught, but perhaps gaining a little political capital from voters may be the reason.  On March 20th, a Republican coalition led by Paul Ryan forged a budget which cuts taxes for both individuals and corporate bodies, and removes several 'tiers' as well as the dreaded AMT.

While it has no chance of passage, the GOP 2013 budget, details of which have been leaked by the WSJ, proposes slashing corporate and individual tax rates, collapsing the current six tax bracket system into just two tiers (10% and 25%), lowering top corporate tax rate to 25% and scrapping the anachronism that is the AMT, or Alternative Minimum Tax. Finally, the proposed plan would nearly eliminate U.S. taxes on American corporations' earnings from overseas operations: something which companies with foreign cash would be rather happy to hear. - Zerohedge


While the jealousy class, otherwise known as the 1% of the 99%ers will not be thrilled with corporations receiving tax breaks, the rest of America should take a second look and realize the potential of what this means.  Because of the draconian tax system, companies have been shipping jobs, money, and infrastructure offshore for more than a decade, causing 8 million jobs to be lost in industrial and manufacturing sectors.  If companies were given cause to bring back the TRILLIONS of dollars they keep out of the American economy, then you would have an automatic force majeure in the financial system, and it, more than Obama's trillion dollar failed 'shovel ready' job program, would help bring the US out of recession, and start putting Americans back to work.

And with the removal of the tier system of taxation, maybe put some IRS agents OUT of work.

US Taxpayers begin bailouts in Greece as IMF confers first payments under settlement

For all intensive purposes, the IMF is the United States taxpayer.  America provides 17% of the funding to the global bank, and almost 3 times the amount as the second biggest contributor (Japan).  So in every sense of the word, when politicians or the media refer to the IMF, they are really talking about the US and US taxpayer.


IMF Members' Quotas and Voting Power
Nation
Percentage of Funding Quota
Percentage of Executive Board Votes
U.S.
17.09%
16.74%
Japan
6.12%
6.01%
Germany
5.98%
5.87%
France
4.94%
4.85%
U.K.
4.94%
4.85%














With this being determined, it should be no surprise to the American people that the Greek settlement and Greek bailout would be thrust onto the US and our tax dollars... similar to how our tax dollars were used by the FED to bailout European banks in both 2008 and again this year under dollar swap programs.


"Greece has received the first 7.5 billion euros of aid from its new EU/IMF bailout, with the bulk of the payment going to repay bonds held by the euro zone's central banks, government officials said on Tuesday." So while the Greek may particularly care that not only will they not see much if any of the actual bailout cash, and in fact will soon have to start using their gold to fill the capital shortfall as reported here, we are curious what the response will be from US taxpayers, who are on the hook for about 17% of IMF funding, as the money starts trickling in, however not for some old-fashioned concepts such as stimulating jobs, but simply to indirectly, with Greece as a conduit, bailout Europe's insolvent central banks. - Zerohedge

The dying college and university model

As costs for college and university eduction has skyrocketed over the past decade, student loan eligibility has gotten easier for young adults.  The paradigm Americans have over borrowing for today without considering tomorrow's future is leaving the next generation with debts that will affect their choices for decades to come.

So with this being said, and the statistical no-win scenario of further education, coupled with dwindling job opportunities and falling wages, the old model of needing a college Degree to have a good lifestyle is dying in society as the cost of eduction itself, not the lack of opportunities, is what is killing the future of the next generations.

A recent infograph study by Online College News shows exactly how the unsustainable cost of higher education is no longer a viable solution to ensuring a good future in a career, or lifestyle.



Monday, March 19, 2012

Art Cashin shows that Government adjustments to jobs reports masking the real picture

Highly respected UBS economic analyst Art Cashin did a critique of the recent BLS reports coming out of the government regarding jobs and unemployment.  His focus was on the massive 'seasonally adjusted' tools that are used to estimate data that isn't confirmed, and with so much of the latest reports showing job growth that isn't actually there, Cashin assesses that the reports no longer carry much weight as an economic indicator.


Most economic data is seasonally adjusted. This is a good thing because there are seasonal patterns during the course of the year. But the sheer size of the recession we went through had an unintended impact on the way those algorithms run. When the economy fell off a cliff in the Great Recession it was like no other recession we have experienced, so it wasn’t easily compared. The systems received data in Q4 and Q1 expecting it to be particularly weak on a seasonal basis. Therefore, they adjusted upwards and that was not intended. There is an easy, un-confusing, fifth-graders-can-do-it, way around this, which is to look at the year-over-year growth rate which shows something quite ominous. When we look at our forward-looking indicators both sets surged initially coming out of the recession. Then they rolled over. They popped up briefly again about a year ago and now they have turned down again. The Weekly Leading Indicator is now at its worst readings since July 2009. These leading indicators have hardly been swayed from their recessionary trajectory. So it brings the bigger question, can unprecedented global monetary policy repeal the business cycle? And these pictures say no. - Zerohedge

China gives middle finger to US over economic sanctions on oil sales

With the US and international banking cartels doing their best to squeeze Iran under economic sanctions, China, which relies heavily on Iranian oil, gave the global superpower the proverbial middle finger as Chinese tanker officials told the press that nothing will stand in their way of shipping oil from the Middle Eastern nation to their country.

China, the biggest buyer of Iranian oil, will take steps to prevent European trade sanctions disrupting shipments from the Persian Gulf nation, said tanker operator China Shipping Development Co.

The government has discussed ways of helping shipping companies get insurance once sanctions against Iran kick in on July 1, General Manager Yan Zhichong told reporters in Hong Kong today. The ministry of transport and National Development Reform Commission has had special meetings on the issue, he said.

"The attitude is clear - we must make sure that the volume of our shipments will not drop," Yan said. "The government regards it as a very important issue." - Poor Richards Blog


With Russia already saying they will oppose the US and Israel on any strikes sent at Iran, and now China blatently crossing the line on imposed economic sanctions, the world sits on a powder keg like 1963 and the Cuban Missile Crisis... and this time, it may be the US that blinks.