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 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